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Technology Stocks : Excite [XCIT], an exciting stock to own in 1999! -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (740)	1/1/1998 1:06:00 PM
From: John May	Read Replies (1) \| Respond to of 3183

Forgive me if this was previously reported. I found this buried in the SEC filings for Music Boulevard (N2K Inc., NASDAQ: NTKI): <<On September 23, 1997, the Company entered into a sponsorship agreement with Excite, Inc. ("Excite") (the "Excite Contract"), pursuant to which N2K will be the exclusive retail music store sponsor of the www.excite.com website, provide certain music-related content to the www.excite.com website, create a co-branded area of Music Boulevard, the Company's website, and participate in joint promotions to customers of this co-branded area. The Excite Contract provides for the Company to pay Excite an initiation fee, an annual exclusivity fee, as well as an annual sponsorship fee for ongoing programming, links, placements, advertisements and promotions. Under the terms of the Excite Contract, the Company will also pay Excite a specified share of gross margins realized by the Company on transactions, advertising, sponsorship, promotions and other revenues generated during the term of the Excite Contract on Music Boulevard as a result of users referred from the www.excite.com website. In consideration of the sponsorship opportunity afforded to the Company under the Excite Contract, N2K has agreed to pay Excite a guaranteed minimum total of $9,800,000 over a two-year contract term, of which $500,000 was paid as of September 30, 1997 (included in prepaid expenses), $500,000 was paid on November 17, 1997, the commencement date, and $1,800,000 will be paid before December 31, 1997, with additional payments of $2,875,000 during 1998 and $4,125,000 during 1999. The Company amortizes the costs associated with the Excite Contract over the initial contract term which expires on the second anniversary of the commencement date. The amortization method is primarily based upon the number of impressions received during the contract term. The Company will continually evaluate the realizability of this asset and, if necessary, write down the asset to its net realizable value. Pursuant to the terms of the agreement, Excite is obligated to offer the Company the right of first refusal to negotiate with Excite for renewal of the Excite Contract.>>