The AOL deal revisited:
Got this from one of the SEDAR files (Sept 1, 1998). I guess the deals end in November 1999.
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On February 18, 1997, the Company entered into a subscription agreement with AOL pursuant to which it sold 1,000,000 previously unissued Common Shares (together with a warrant to purchase additional Common Shares representing an aggregate of up to 51% of the issued and outstanding Common Shares of the Company, at various prices) to AOL at a price of $1.00 per share for an aggregate purchase price of $1,000,000. The purchase price was paid to the Company in advertising credits. AOL did not exercise the warrant to purchase the additional Common Shares representing up to 51% of issued and outstanding Common Shares of the Company and therefore has no further right to subscribe for the Common Shares.
The parties also entered into an Intellectual Property Rights and Non-Competition Agreement on February 21, 1997 which is substantially similar to the Intellectual Property Rights and Non-Competition Agreement with Toronto Star.
Under an Auction Services Agreement made February 21, 1997, the Company granted AOL the non-exclusive right to direct AOL users to the Company's auction service, and the option to establish an auction service on one or more AOL servers as the AOL Auction Service. This agreement was replaced by an interactive marketing agreement dated as of November 1, 1997 whereby the Company agreed to purchase advertising and promotion for US$1,250,000 per quarter for two years with an option for either party to terminate the agreement at the end of the first year upon 60 days' notice.
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