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Technology Stocks : Infospace - Another internet high flier? -- Ignore unavailable to you. Want to Upgrade?

To: Andretti who wrote (7)	11/28/1998 9:46:00 AM
From: Bald Man from Mars	Read Replies (2) \| Respond to of 38

thanks, the reason why I asked is usually it is safer to play the owner than the IPO, plus it is hard to get the IPO ...

To: Andretti who wrote (7)	11/28/1998 10:33:00 AM
From: Andretti	Read Replies (1) \| Respond to of 38

Check out their agreement with AOL: From Hoover's Form S-1/A: On August 24, 1998, the Company entered into agreements with AOL to provide white pages directory and classifieds information services to AOL. Pursuant to the white pages directory services agreement, the Company has agreed to provide to AOL white pages listings and directory service. The Company is required to pay to AOL a quarterly carriage fee, the retention of which is conditioned on the quarterly achievement of a minimum number of searches on the AOL white pages site. The quarterly carriage fee is paid in advance at the beginning of the quarter in which the searches are expected to occur and is recorded as a prepaid expense in the quarter it is paid. The fee is refundable if the minimum number of searches on the AOL white pages site for such quarter is not achieved. In addition, AOL has guaranteed to the Company a minimum number of searches over the term of the agreement. In the event that AOL does not deliver the guaranteed minimum number of searches over the term of the agreement, AOL has agreed to pay to the Company a cash penalty payment. The Company will share with AOL revenues generated by advertising on the Company's white pages directory services delivered to AOL. The Company is entitled to a greater percentage of advertising revenue than is AOL if the amount of such revenue received by the Company is less than the carriage fees paid to AOL. The Company has agreed to provide white pages directory services to AOL for a three-year term beginning on the date of first commercial launch (anticipated to be November 1998), which term may be extended for four additional one-year terms at AOL's discretion. The agreement may be terminated by AOL for any reason after 18 months or at any time upon the acquisition by AOL of a competing white pages directory services business. In the event of any such termination, AOL is required to pay a termination fee to the Company. In addition, without the payment of a termination fee, AOL has the right to terminate the agreement in the event of a change of control of the Company. The Company has agreed to provide classifieds information services to AOL for a two-year term, with up to three one-year extensions at AOL's discretion. AOL has agreed to pay to the Company a quarterly fee and will share with the Company revenues generated from payments by individuals and commercial listing services for listings on the AOL classifieds service. Pursuant to the terms of these agreements, the Company has granted AOL the right to negotiate with the Company exclusively and in good faith for a period of 30 days with respect to proposals or discussions that would result in a sale of a controlling interest of the Company or other merger, asset sale or other disposition that effectively results in a change of control of the Company. In connection with the agreements, on August 24, 1998, the Company issued to AOL warrants to purchase up to 989,916 shares of Common Stock, which warrants vest in 16 equal quarterly installments over four years, conditioned on the delivery by AOL of a minimum number of searches each quarter on the Company's white pages directory service. The warrants have an exercise price of $12.00 per share.