EXHIBIT 10.53
PRIORITIZED LISTINGS
SYNDICATION AGREEMENT
THIS PRIORITIZED LISTINGS
SYNDICATION AGREEMENT (the “ Agreement ”), made
as of August 21, 2001 (the “ Effective Date ”),
is made by and between LookSmart, Ltd., a Delaware corporation
(“ LookSmart ”), and Search123 Inc., a
California corporation (“Search123”) (each, a “
Party ”, or collectively referred to as the “
Parties ”).
WHEREAS, Search123 is the owner and
provider of a cost-per-click search engine (the “
Search123 Service ”);
WHEREAS, LookSmart is the owner of
an Internet search and directory service which includes the ability
to search the Internet for relevant content by typing a word or set
of words into a search box (the “ LookSmart Service
”);
WHEREAS, the Parties desire to offer
LookSmart Service as an integrated component of the Search123
Service;
NOW, THEREFORE, for good and
valuable consideration, the sufficiency of which is hereby
acknowledged, the parties agree as follows:
1. Integration of LookSmart Service into
Search123 Service .
1.1. Definitions
.
“ LookSmart Search
Results ” means a set of Prioritized Listings provided by
LookSmart from its proprietary database in response to an Internet
user’s keyword search query on the Search123 Service. The
LookSmart Search Results, when integrated into the Search123
Service, will appear on the Search123 service search results,
including the Search123 Site and Search123 Affiliate Sites,
substantially as shown in Exhibit A attached hereto (which
depicts the results on the Search123 Site and representative
Search123 Affiliate sites).
“ Search123 Affiliate
” shall mean the web site operators who distribute the
Search123 Service or refer Internet users to the Search123
Service.
“ Search123 Affiliate
Site ” shall mean the default Internet home page or
primary search functionality of Search123 Affiliates.
“ Search123 Site
” shall mean the default Internet home page that is accessed
by Search123 subscribers or other Internet users and is located at
www.Search123.com .
“ Destination Page
” means the LookSmart customer’s web page accessed by
clicking on a Prioritized Listing.
“ Prioritized Listing
” means a text-based site title, description (maximum 255
characters, including spaces) and URL hyperlink (with tracking
code) which is drawn from the LookSmart database of Prioritized
Listings in response to a keyword search query.
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“ Referral ”
occurs when a bona fide Internet user (which excludes a robot,
spider, software, scraper or other mechanical, artificial or
fraudulent means) clicks through on a Prioritized Listing and
accesses a Destination Page. LookSmart will identify Referrals by
means of a “come from tag” in the URL hyperlink from
Prioritized Listings. For the avoidance of doubt, no Referral will
occur unless the Destination Page is fully served to the
end-user’s browser.
2. Integration.
LookSmart will provide the LookSmart
Search Results in response to a user’s keyword search query
via a text-based data feed, or other mutually agreed method, from
the LookSmart database. The web pages containing LookSmart Search
Results will be served and hosted by Search123, provided that
Search123 shall serve the LookSmart Search Results in the order
presented to Search123 by LookSmart. The database and search
algorithm (and any modifications thereto during the Term) used to
generate the LookSmart Search Results are proprietary to LookSmart
and shall remain entirely within LookSmart’s control. All
Prioritized Listings returned by LookSmart in response to a search
query shall in all cases be included by Search123 (a) in the order
provided by LookSmart and (b) in order of prominence relative to
other Search123 results based on the price that LookSmart is paying
Search123 for such queries based on the previous month’s
searches as specified in Section 3. If a user’s search query
does not result in any match(es) with search results from the
LookSmart database, then no LookSmart Search Results will be
displayed on the search results page. LookSmart retains the right
to modify the appearance and content of the LookSmart Search
Results, as well as the underlying database and search algorithm,
so long as the modifications do not substantially change the
location and layout described in this paragraph. Search123 will
complete integration and launch the Prioritized Listings no later
than August 30, 2001, 2001, provided that Search123 is given all
necessary resources and assistance by LookSmart within 10 days of
such date.
3. Fees and Payment.
LookSmart shall pay to Search123 a
specified amount per Referral on a monthly basis based on the
volume of Referrals Search123 generates, as follows:
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[***] - [***]
Referrals/mo: $[***]/Referral
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[***] - [***]
Referrals/mo: $[***]/Referral
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[***]+
Referrals/mo: $[***]/Referrals
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LookSmart will make such payments to Search123
within 30 days after the end of calendar month.
4. Responsibility for LookSmart
Search Results. LookSmart
will be solely responsible for the generation and collection of
revenue from advertising or sponsorships on the LookSmart Search
Results, and shall have sole responsibility for building the
Prioritized Listings database and delivery of the LookSmart Search
Results to Search123. LookSmart shall retain sole discretion as to
the location, type and content of advertising served on the
LookSmart Search Results.
5. Reporting and User Data.
5.1 Monthly Traffic
Reports. LookSmart shall
provide to Search123 monthly Referral summaries within 30 days
following the end of each month detailing the number of
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Referrals and the revenue generated in the
corresponding month (“ Traffic Reports ”).
LookSmart’s determination of the number of Referrals during
any period shall be dispositive, unless there is a ten (10%) or
greater discrepancy between the numbers reported by the parties, in
which case the parties will promptly meet and work together in good
faith to determine the cause of the discrepancy. Once a discrepancy
is identified, the Parties will make any necessary adjustments at
the time of the next payment.
5.2. Books & Records;
Auditing. During the Term
of this Agreement and for a period of six months thereafter, the
Parties will each maintain accurate and complete books and records,
including copies of all customer and other correspondence, relating
to such Party’s performance of its obligations under this
Agreement. Each Party will have the right, no more than once in any
twelve (12) month period during the Term, to audit the other
Party’s books and records which are relevant to the
performance of its obligations under this Agreement upon ten (10)
days’ prior written notice. Such audits will be performed by
the auditing Party’s representatives and will be conducted
during normal business hours. Costs for such audits will be paid
for by the auditing Party, unless the results of the audit show a
shortfa