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Microcap & Penny Stocks : Bid.com International (BIDS)
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To: Ruyi who wrote (18002)4/9/1999 1:49:00 AM
From: Gordon Gekko  Read Replies (2) of 37507
 
Did you even bother to read the description of the AOL agreement within the latest filing? If you had you would of noticed the following.

97 AOL Deal Particulars

Satisfied with its initial relationship with AOL, the Company entered into a non-exclusive Interactive Marketing Agreement (the "AOL Marketing Agreement") with AOL in November 1997. The AOL Marketing Agreement provided BID.COM with anchor tenant positioning in a number of AOL's E-commerce offerings, plus various keywords such as "Online Auction." Pursuant to the AOL Marketing Agreement, the Company provided product procurement, transactional processing and order fulfillment services to AOL in connection with BID.COM The Online Auction.

99 AOL Deal Particulars

In March 1999, the Company and AOL terminated the AOL Marketing Agreement and entered into a new non-exclusive agreement. Under the new agreement, AOL continues to provide BID.COM with anchor tenant positioning in a number of AOL's E-Commerce offerings, plus various key words such as "Online Auctions," and the Company will continue to provide product procurement, transactional processing and order fulfillment services to AOL in connection with BID.COM The Online Auction.

Conclusions

1) The services that AOL is providing to Bid and vice versa are EXACTLY the same from the 97 to the 99 agreement.

2) The services are the same, but the amount each party is paying for such services has been reduced. The advertising commitment by Bid has been reduced from $5M to $3M plus the previous revenue sharing agreements have been terminated.

3) You may now be asking why would AOL agree to lower payments for the same level of service? This is where the Bid shares held by AOL come into play. Bid consented to AOL selling a portion of their shares in exchange for the same level of service established within the new agreement. Bid agreed to this because it will be a positive cash flow event.

4) AOL still has a representative on the Bid board.

GG
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