Exhibit 10.2.1

 

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in
places marked “[***]” and has been filed separately with the Securities and
Exchange Commission pursuant to a Confidential Treatment Application filed with
the Commission.

 

Amendment No. 46(CA) Rev. 1

 

Date: June 1, 2005

SOW:

ý No

 

 

 

o Yes

 

 

 

[g146681kei001.jpg]

 

AMENDMENT

TO

CONTRACTOR SERVICES AGREEMENT

FOR

NUMBERING ADMINISTRATION CENTER / SERVICE
MANAGEMENT SYSTEM

ANNUAL UPDATE TO CONVERSION FACTOR

FOR THE PERIOD JUNE 1, 2005 TO MAY 31, 2006

 

1

--------------------------------------------------------------------------------

 

AMENDMENT

TO

CONTRACTOR SERVICES AGREEMENT FOR NUMBERING
ADMINISTRATION CENTER / SERVICE MANAGEMENT SYSTEM

 

Annual Update to Conversion Factor

 

For the Period June 1, 2005 to May 31, 2006

 

1.                                      PARTIES

 

This Revision 1 (“Revision”) of Amendment Number 46 ( “Amendment 46”) is entered
into pursuant to Article 30 of, and upon execution shall be a part of, the
Contractor Services Agreement for Number Portability Administration
Center/Service Management System (the “Master Agreement”) by and between
NeuStar, Inc., a Delaware corporation (“Contractor”) and the Canadian LNP
Consortium, Inc., a corporation incorporated under the laws of Canada (the
“Customer”).

 

2.                                      EFFECTIVENESS

 

This Revision shall be effective as of the 1st day of June 2005 (the “Revision
Effective Date”) only upon execution of this Revision by Contractor and
Customer.  The number in the upper left-hand corner refers to this Revision. 
Undefined capitalized terms used herein shall have the meanings ascribed by the
Master Agreement.

 

3.                                      ANNUAL UPDATE

 

Pursuant to that certain Amending Agreement, effective March 31, 2003 (the
“Amending Agreement”), of the Master Agreement, Contractor and Customer agreed
to specify all amounts chargeable, payable, or to be credited under the Master
Agreement, including, for greater certainty and without limitation, amounts
listed in Exhibit E, Exhibit G and amounts under or pursuant to any Statement of
Work and any Performance Credits, in Canadian dollars, but except as otherwise
provided in the Amending Agreement.  For the period June 1, 2003 to May 31,
2004, each such dollar amount, was initially converted from its U.S. dollar
amount into Canadian dollars by multiplying each such amount by a conversion
factor equal to 1.5723.

 

In accordance with the terms of the Amending Agreement, effective on each
anniversary of the Amending Agreement, the conversion factor set forth above is
recomputed based on the average of the exchange rates for each of the last five
(5) Business Days in the month of April immediately preceding the applicable
anniversary of the Amending Agreement’s effective date, as published in the Key
Currency Cross Rates column of the Wall Street Journal.  In accordance with the
terms and conditions of the Amending Agreement, the conversion factor for the
period of June 1, 2004 to May 31, 2005 was calculated to equal 1.3612, as
reflected in Amendment 46.

 

2

--------------------------------------------------------------------------------

 

In accordance with the terms and conditions of the Amending Agreement, the
conversion factor for the period of June 1, 2005 to May 31, 2006 was calculated
to equal 1.2484.

 

Finally, as a result of the requirements in Statement of Work 40 (VPN Access to
NPAC/SMS for LTI Users), the entry under Item No. 1 (Monthly Charges) in
Schedule 1 (Service Element Fees Unit Pricing) of Exhibit E to the Master
Agreement, whose Service Element is styled “Dial-Up Port to NPAC network”, is
hereby deleted in its entirety.

 

4.                                      AMENDMENT AND RESTATEMENT

 

Effective on the Revision Effective Date, and throughout the Initial Term, the
parties hereby amend and restate Exhibit E and Exhibit G to the Master Agreement
and Article 16 of the Master Agreement in their entirety to reflect all amounts
chargeable, payable, or to be credited under the Master Agreement in Canadian
dollars based on the conversion factor set forth in Article 3 above (attached
hereto as Attachments 1, 2 and 3, respectively).  Notwithstanding the foregoing,
except when and as otherwise expressly provided by a written agreement between
Contractor and Customer, and subject to the reservation in Article 5 below, any
amended and restated document attached hereto is intended for information
purposes only.

 

5.                                      RESERVATION

 

The rights and obligations of the parties with respect to the calculation and
application of a conversion factor are defined in the Master Agreement, as
amended by the Amending Agreement.  It is the intent of the parties that neither
party will be prejudiced by any errors or mistakes in calculating any conversion
factor or by the application of any conversion factor.  Upon the discovery of
any such error or mistake, the parties will promptly and in good faith issue a
correction; e.g., by issuing a revised Statement of Work.

 

6.                                      COMPLETION AND ACCEPTANCE CRITERIA

 

The following internal documents are applicable to the Additional Services
contemplated under this Revision:

 

N/A

 

Functional Requirements Specifications

N/A

 

Requirements Traceability Matrix

N/A

 

External Design

N/A

 

System Design

N/A

 

Detailed Design

N/A

 

Integration Test Plan

N/A

 

System Test Plan

N/A

 

Software Quality Assurance Program Report

N/A

 

User Documentation

N/A

 

Software Configuration Management Plan

N/A

 

Standards and Metrics

 

3

--------------------------------------------------------------------------------

 

7.                                      IMPACTS ON MASTER AGREEMENT.

 

The following portions of the Master Agreement are impacted by this Revision:

 

ý

 

Master Agreement

None

 

Exhibit B Functional Requirements Specification

None

 

Exhibit C Interoperable Interface Specification

ý

 

Exhibit E Pricing Schedules

None

 

Exhibit F Project Plan and Test Schedule

ý

 

Exhibit G Service Level Requirements

None

 

Exhibit H Reporting and Monitoring Requirements

None

 

Exhibit I Key Personnel

None

 

Exhibit J User Agreement Form

None

 

Exhibit K External Design

None

 

Exhibit L Infrastructure/Hardware

None

 

Exhibit M Software Escrow Agreement

None

 

Exhibit N System Performance Plan for NPAC/SMS Services

None

 

Exhibit O Statement of Work Cost Principles

 

8.                                      MISCELLANEOUS.

 

8.1                                 CONTINUATION OF MASTER AGREEMENT AND USER
AGREEMENT.

 

Except as specifically modified and amended hereby, all the provisions of the
Master Agreement and the User Agreements entered into with respect thereto, and
all exhibits and schedules thereto, shall remain unaltered and in full force and
effect in accordance with their terms.  From and after the date hereof, any
reference in either the Master Agreement to itself and any Article, Section or
subsections thereof or to any Exhibit thereto, or in any User Agreement to
itself or to the Master Agreement and applicable to any time from and after the
date hereof, shall be deemed to be a reference to such agreement, Article,
Section, subsection or Exhibit as modified and amended by this Revision.  From
and after the Revision Effective Date, this Revision shall be a part of the
Master Agreement and, as such, shall be subject to the terms and conditions
therein.

 

8.2                                 COUNTERPARTS.

 

This Revision may be executed in two or more counterparts and by different
parties hereto in separate counterparts, with the same effect as if all parties
had signed the same document.  All such counterparts shall be deemed an
original, shall be construed together and shall constitute one and the same
instrument.

 

8.3                                 ENTIRE AGREEMENT.

 

This Revision sets forth the entire understanding between the Parties with
regard to the subject matter hereof and supersedes any prior or contemporaneous
agreement, discussions, negotiations or representations between the Parties,
whether written or oral, with respect thereto.

 

4

--------------------------------------------------------------------------------

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

5

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the undersigned have executed and delivered this Revision 1
to Amendment No. 46:

 

CONTRACTOR:

NeuStar, Inc.

 

 

 

 

By:

 

 

 

 

Its:

 

 

 

 

Date:

 

 

 

 

CUSTOMER:

Canadian LNP Consortium, Inc.

 

 

 

By:

 

 

 

 

Its:

 

 

 

 

Date:

 

 

 

6

--------------------------------------------------------------------------------

 

ATTACHMENT 1

TO

REVISION 1 TO AMENDMENT NO. 46(CA)

 

AMENDED AND RESTATED EXHIBIT E TO MASTER AGREEMENT

 

7

--------------------------------------------------------------------------------

 

EXHIBIT E

 

PRICING SCHEDULES

 

NPAC/SMS SERVICES

 

This amended and restated document is intended for information purposes only. 
The rights and obligations of the parties are defined in the Contractor Services
Agreement dated May 19, 1998, as amended by the Canadian NPAC/SMS Contractor
Services Agreement Amending Agreement, dated March 31, 2003.  Exhibit E updated
effective June 1, 2005.

 

--------------------------------------------------------------------------------

 

PRICING SCHEDULES

 

The following schedules set forth the prices at which Contractor will be
compensated for rendering the Services under the Agreement.  A general
description of these charges and the methods of billing therefor are set forth
in Section 6 of the Agreement.  See Agreement for other applicable charges.

 

Notwithstanding anything in the Agreement to the contrary: (a) all amounts
chargeable, payable, or to be credited under the Agreement, including, for
greater certainty and without limitation, amounts listed in Exhibit E, Exhibit G
and amounts under or pursuant to any Statement of Work and any Performance
Credits, shall be in Canadian dollars; and (b) all amounts described in
subparagraph (a)immediately above, excluding the amount set forth in Sections
20.1(iv) (which amount shall continue to be denominated in US dollars) and
20.4(iv) (which amount shall continue to be denominated in Canadian dollars as
set forth below), will be adjusted as follows:

 

(I)                                    effective on the Effective Date, for the
period June 1, 2003 to May 31, 2004, each such dollar amount, shall be converted
from its U.S. dollar amount, as such amounts appear in the Agreement immediately
prior to the Effective Date (other than such of those amounts expressly amended
by an Amending Agreement between Contractor and Customer, dated March 31, 2003,
which amended amounts shall be utilized for the purposes of the conversion
described herein) into Canadian dollars by multiplying each such amount by the
number 1.5723; and

 

(II)                                effective on each anniversary of the
Effective Date, each such dollar amount shall be converted from its U.S. dollar
amount, as such U.S. dollar amounts appear in the Agreement immediately prior to
the Effective Date (other than such of those amounts expressly amended by an
Amending Agreement between Contractor and Customer, dated March 31, 2003, which
amended amounts shall be utilized for the purposes of the conversion described
herein), into Canadian dollars by multiplying each such amount by the average of
the exchange rates for each of the last five (5) Business Days in the month of
April immediately preceding the applicable anniversary of the Effective Date, as
published in the Key Currency Cross Rates column of the Wall Street Journal.

 

Effective on the Effective Date, and throughout the Initial Term, the dollar
amount set forth in Section 20.4  will be adjusted by multiplying such dollar
amount by the number 1.0000.

 

Within fifteen (15) days following the last Business Day in April of each year,
the parties shall amend and restate Exhibit E, Exhibit G, and Article 16 in
their entirety, to reflect all dollar amounts in Canadian dollars based on the
applicable exchange rate.

 

The exchange rate determined at the June 1, 2005 anniversary is 1.2484.

 

E-1

--------------------------------------------------------------------------------

 

SCHEDULE 1

 

SERVICE ELEMENT FEES/UNIT PRICING

 

Category

 

Service Element

 

Unit

 

Price
U.S.
Dollars

 

Price
Canadian
Dollars

[* * *]

 

 

 

 

 

 

 

 

 

 

[* * *]

(1)

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

(1)

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

[* * *]

 

 

 

 

 

 

 

 

 

 

[* * *]

(3)

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

(4)

[* * *]

 

$

[* * *]
[* * *]
[* * *]

 

$

[* * *]
[* * *]
[* * *]

 

 

[* * *]

 

[* * *]

 

[* * *]

 

[* * *]

 

 

 

 

 

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

(5)

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

 

 

 

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

(6)

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

(7)

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

[* * *]

 

 

 

 

 

 

 

 

 

 

[* * *]

(8)

[* * *]

 

$

[* * *]

 

$

[* * *]

 

 

[* * *]

(9)

[* * *]

 

$

[* * *]

 

$

[* * *]

 

SCHEDULE 2

 

TRAINING CHARGES

 

Service Element

 

Unit

 

Price
U.S.
Dollars

 

Price
Canadian
Dollars

[* * *]* [* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

[* * *]* [* * *] (10) (11)

 

[* * *]

 

$

[* * *]

 

$

[* * *]

 

--------------------------------------------------------------------------------

*  Training consists of LTI User Training lasting 8 to 12 hours.

 

E-2

--------------------------------------------------------------------------------

 

SCHEDULE 3

 

INTEROPERABILITY TESTING *

 

Category & Service
Element

 

Unit

 

Price

 

Price Canadian
Dollars

[* * *]

 

 

 

 

 

 

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

[* * *]

 

 

 

 

 

 

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

[* * *]

 

[* * *]

 

$

[* * *]

 

$

[* * *]

 

--------------------------------------------------------------------------------

*                                         [* * *]

(1)                                  Monthly port charges [* * *]

(2)                                  Reserved

(3)                                  [* * *]

(4)                                  The TN Porting Event [* * *]

The TN Porting Event [* * *]

(5)                                  An Ad Hoc Report [* * *]

(6)                                  [* * *]

(7)                                  [* * *]

(8)                                  The one-time Log-on ID [* * *]

(9)                                  The Mechanized Interface [* * *]

(10)                            [* * *]

(11)                            [* * *]

 

E-3

--------------------------------------------------------------------------------

 

ATTACHMENT 2

TO

REVISION 1 TO AMENDMENT NO. 46(CA)

 

AMENDED AND RESTATED EXHIBIT G TO MASTER AGREEMENT

 

8

--------------------------------------------------------------------------------

 

EXHIBIT G

 

SERVICE LEVEL REQUIREMENTS

 

NPAC/SMS

 

No.

 

Procedure

 

Service Commitment Level

 

Service Affecting/
Non-Service Affecting

 

Performance Credit US
Dollars

 

Performance Credit
Canadian Dollars

 

Report
Frequency and
Performance Credit
Calculation Interval

1.

 

Service Availability (Customer)

 

Maintain a 99.9% minimum Service Availability

 

Service Affecting

 

>99.85% but <99.90%:
$[* * *];
>99.80% but <99.85%:
$[* * *];
>99.75% but <99.80%:
$[* * *];
>99.70% but <99.75%:
$[* * *];
>99.65% but <99.70%:
$[* * *];
> 99.60% but <99.65%:
$[* * *];
<99.60%: $[* * *]

 

>99.85% but <99.90%:
$[* * *];
>99.80% but <99.85%:
$[* * *];
>99.75% but <99.80%:
$[* * *];
>99.70% but <99.75%:
$[* * *];
>99.65% but <99.70%:
$[* * *];
>99.60% but <99.65%:
$[* * *];
<99.60%: $[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

2.

 

Scheduled Service Unavailability(Customer)

 

Scheduled Service Unavailability will be equal to or less than 20 hours per
calendar quarter, or such longer period otherwise agreed to by the Parties,
provided that such twenty (20) hour period (each, a “20 Hour Period”) shall not
include time reasonably required for release implementations, data rebuilds, and
other non-routine tasks (the time for which shall be agreed to on a case by case
basis). Contractor shall, not less than ten (10) business days prior to, and not
less than four (4) business days after, each Scheduled Service Unavailability
event, provide to Customer a request for maintenance and report, respectively,
both in the form of Annex A attached to this Exhibit G. Contractor shall not
proceed with the proposed Scheduled Service Unavailability unless it has
received prior written approval (e-mail is acceptable) from Customer for its
request for maintenance, which approval shall not be unreasonably withheld. For
greater certainty, for any Scheduled Service Unavailability in excess of 20
hours in each 20 Hour Period, Customer shall be entitled to enforce all remedies
available to it, including without limitation Performance Credits as set forth
in this SLR 2. No Scheduled Service Unavailability event shall exceed ten
(10) hours. Each such event shall be scheduled in advance and shall be
coordinated with each User’s maintenance schedule.

 

Service Affecting

 

$[* * *] for each hour or portion thereof in excess of approved Scheduled
Service Unavailability or such longer period otherwise agreed to by the Parties

 

$[* * *] for each hour or portion thereof in excess of approved Scheduled
Service Unavailability or such longer period otherwise agreed to by the Parties

 

Monthly

 

--------------------------------------------------------------------------------

 

No.

 

Procedure

 

Service Commitment Level

 

Service Affecting/
Non-Service Affecting

 

Performance Credit US
Dollars

 

Performance Credit
Canadian Dollars

 

Report
Frequency and
Performance Credit
Calculation Interval

3.

 

SOA/LSMS Acknowledge- ment Response Times (Customer)

 

Response time (i.e., means NPAC processing time) for 95% of the responses will
be equal to or less than 3 seconds, except for miscellaneous transactions, such
as queries, audits and edits

 

Service Affecting

 

$[* * *]

 

[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

4.

 

LSMS Broadcast Time (Customer)

 

A mean time maximum of 60 seconds from activation to broadcast

 

Service Affecting

 

$[* * *]

 

$[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

5.

 

SOA to NPAC Interface Transaction Rates (Customer)

 

Maintain a minimum of 2 transactions per second per User SOA for 95% of the
transactions.

 

Service Affecting

 

$[* * *]

 

$[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

6.

 

NPAC to LSMS Interface Transaction Rates (Customer)

 

Maintain a minimum of 10 transactions per second per User LSMS for 95% of the
transactions (excluding the impact of delays caused by Users)

 

Service Affecting

 

$[* * *]

 

$[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

7.

 

SOA/LSMS Interface Availability (User)

 

Maintain an Interface Availability at a minimum of 99.9%

 

Service Affecting

 

>99.85% but <99.90%:
$[* * *];
>99.80% but <99.85%:
$[* * *];
>99.75% but <99.80%:
$[* * *];
>99.70% but <99.75%:
$[* * *];
>99.65% but <99.70%:
$[* * *];
>99.60% but <99.65%:
$[* * *];
<99.60%: $[* * *]

 

>99.85% but <99.90%:
$[* * *];
>99.80% but <99.85%:
$[* * *];
>99.75% but <99.80%:
$[* * *];
>99.70% but <99.75%:
$[* * *];
>99.65% but <99.70%:
$[* * *];
>99.60% but <99.65%:
$[* * *];
<99.60%: $[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

 

Unscheduled Backup Cutover time (Customer)

 

A maximum of 10 minutes to cutover to the backup site

 

Service Affecting

 

$[* * *]

 

$[* * *]

 

Per Event

 

 

 

 

 

 

 

 

 

 

 

 

 

9.

 

NPAC/SMS Partial Disaster Restoral Interval (Customer)

 

Partial restoration will be equal to or less than 24 hours (Partial restoration
meaning the capability of receiving, processing and broadcasting updates)

 

Service Affecting

 

$[* * *] for each day or portion thereof in excess of 24 hours

 

$[* * *] for each day or portion thereof in excess of 24 hours

 

Per Event

 

 

 

 

 

 

 

 

 

 

 

 

 

10.

 

NPAC/SMS Full Disaster Restoral (Customer)

 

Full restoration will occur at a maximum of 48 hours

 

Service Affecting

 

$[* * *] for each day or portion thereof in excess of 24 hours

 

$[* * *] for each day or portion thereof in excess of 24 hours

 

Per Event

 

--------------------------------------------------------------------------------

 

No.

 

Procedure

 

Service Commitment Level

 

Service Affecting/
Non-Service Affecting

 

Performance Credit US
Dollars

 

Performance Credit
Canadian Dollars

 

Report
Frequency and
Performance Credit
Calculation Interval

11.

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12.

 

User Problem Resolution

 

Minimum 80% calls during Normal Business Hours answered by live operators within
10 seconds

 

Non-Service Affecting

 

[* * *]

 

[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

13.

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14.

 

User Problem Resolution

 

99.0% callback within 30 minutes for requests made during other than Normal
Business Hours

 

Non Service Affecting

 

[* * *]

 

[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

15.

 

User Problem Resolution

 

A minimum of 99.5% of all commitments to get back to the User after the initial
contact will be met

 

Non-Service Affecting

 

[* * *]

 

[* * *]

 

Monthly

 

 

 

 

 

 

 

 

 

 

 

 

 

16.

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17.

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18.

 

System Security

 

Monitor and record unauthorized system access

 

Non-Service Affecting

 

[* * *]

 

[* * *]

 

Per Event

 

 

 

 

 

 

 

 

 

 

 

 

 

19.

 

System Security

 

Remedy logon security permission errors immediately after User notification

 

Non-Service Affecting

 

[* * *]

 

[* * *]

 

Per Event

 

 

 

 

 

 

 

 

 

 

 

 

 

20.

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21.

 

Scheduled Service Unavailability Notification

 

Notice of Scheduled Service Unavailability for routine maintenance of NPAC/SMS
to be given a minimum of 2 weeks in advance.

Notice of Scheduled Service Unavailability for non-routine maintenance of
NPAC/SMS to be given as follows:

•  During Normal Business Hours - a minimum of 7 days in advance

•During Non-Normal Business Hours - a minimum of 24 hours in advance

 

Non-Service Affecting

 

[* * *]

 

[* * *]

 

Per Event

 

 

 

 

 

 

 

 

 

 

 

 

 

22.

 

Unscheduled Service Unavailability Notification

 

Notify User within 15 minutes of detection of an occurrence of unscheduled
Service Unavailability

 

Non-Service Affecting

 

[* * *]

 

[* * *]

 

Per Event

 

 

 

 

 

 

 

 

 

 

 

 

 

23.

 

Unscheduled Service Unavailability Notification

 

Provide 30-minute updates of NPAC status following an occurrence of unscheduled
Service Unavailability through recorded announcement and client bulletins

 

Non-Service Affecting

 

[* * *]

 

[* * *]

 

Per Event

 

--------------------------------------------------------------------------------

 

No.

 

Procedure

 

Service Commitment Level

 

Service Affecting/
Non-Service Affecting

 

Performance Credit US
Dollars

 

Performance Credit
Canadian Dollars

 

Report
Frequency and
Performance Credit
Calculation Interval

24.

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25.

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27.

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

ATTACHMENT 3

TO

REVISION 1 TO AMENDMENT NO. 46(CA)

 

AMENDED AND RESTATED ARTICLE 16 OF THE MASTER AGREEMENT

 

9

--------------------------------------------------------------------------------

 

ARTICLE 16 - DELAYS; PERFORMANCE CREDITS AND CORRECTIVE REPORTING; DEFAULTS;
FORCE MAJEURE

 

16.1                           NOTICE OF DELAYS

 

Time is of the essence in Contractor’s performance of its obligations under this
Agreement.  Contractor shall promptly notify Customer in writing of any
anticipated or known delay in Contractor’s performance of an obligation by the
date specified therefor, if any, in this Agreement, the reasons for the delay,
and the expected duration of the delay.  In the event of any failure of Customer
or User to perform an obligation which delays or threatens to delay a scheduled
performance date of Contractor under this Agreement (“Customer/User Delay”),
Contractor shall promptly notify Customer in writing of such delay or threatened
delay, and Contractor’s scheduled performance date shall be extended day-for-day
for any such actual delay of Customer or User directly affecting such scheduled
performance date.  If Contractor fails to notify Customer of a Customer/User
Delay of which Customer or the applicable User does not otherwise have a prior
notice (i.e., pursuant to a Project Plan), Contractor may not use such
Customer/User Delay as an excuse for its failure to meet a scheduled performance
date.

 

16.2                           [DELETED]

 

16.3                           PERFORMANCE CREDITS

 

In the event that a Service Affecting Event (as defined below) shall have
occurred for any reason other than the occurrence of a Force Majeure Event or a
Customer/User Delay, Contractor shall pay to Customer or affected Users, as
applicable, as “Performance Credits” (and as liquidated damages and not as a
penalty) an aggregate sum equal to the amount set forth under the heading
“Performance Credit Amount” for each such Service Affecting Event, as set forth
in Exhibit G; provided, however, that in no event shall the annual aggregate
amount of Performance Credits exceed CA$ [* * *].  For purposes hereof, a
“Service Affecting Event” shall mean the failure of Contractor to meet a
“Service Affecting” Service Commitment Level set forth in Exhibit G - Service
Level Requirements; provided, however, that if the same facts and circumstances
directly or indirectly result in the failure to meet more than one Service
Level, all such related failures, for purposes of calculating Performance
Credits which shall be due in connection therewith, shall be deemed to be a
single Service Affecting Event.  [Amended]

 

In the event that a Non-Service Affecting Event (as defined below) shall have
occurred for any reason, Contractor shall not be required to pay any Performance
Credits.  For each Non-Service Affecting Event, Contractor shall (i) notify
Customer in writing of such Non-Service Affecting Event, including in such
notification an explanation of the cause of the Non-Service Affecting Event and
a detailed summary of the course of actions, if any, necessary to mitigate the
likelihood of such cause recurring and (ii) diligently pursue the identified
course of action to completion.  For purposes hereof, a “Non-Service Affecting
Event” shall mean the failure of Contractor to meet one of the Service Levels
other than those which give rise to Service Affecting Events.

 

--------------------------------------------------------------------------------

 

16.4                           ALLOCATION OF DAMAGES AMONG USERS

 

The aggregate amount of accrued liquidated damages under Section 16.3 above
shall be allocated among Users as directed by Customer and credited against the
next succeeding monthly billing to such Users for Services or, in the event
Customer terminates this Agreement as a result of any such failure, shall be
allocated and credited in the same manner, with the balance, if any, remaining
after applying said amounts against any final billings to be paid to such Users
by Contractor.  Liquidated damages shall be considered as compensation for
direct damages for the delay suffered by the Users other than those specified in
Section 19.1(g) and Contractor shall remain liable for any of the direct damages
specified in Section 19.1(g). [Amended]

 

16.5                           CONTRACTOR DEFAULTS

 

Contractor shall be in default (“Default”) under this Agreement if Contractor
shall:

 

(a)                                  chronically fail to provide the Canadian
NPAC/SMS at one or more of the “Service Affecting” Service Levels, which failure
is evidenced by recurring events of the same or similar nature that are
indicative of a systemic problem and which either have been unaffected by
Contractor’s repeated cure efforts, if any, or are reasonably unlikely to be
cured with Contractor’s diligent efforts over a reasonable period, which in any
event shall be no less than 30 days; or  [Amended]

 

(b)                                 fail to perform any of its other material
obligations, i.e., material breach, under this Agreement (including the
obligations referred to in Section 21.3, but excluding the obligations referred
to in Section 16.5(a) above) and such failure continues for a period of 30 days
following receipt of written notice of such failure from Customer; provided,
however, that where such failure (other than with respect to a payment
obligation) cannot reasonably be cured within such 30 day period, so long as
Contractor is diligently pursuing such cure, the time for curing such failure
shall be extended for such period as may be necessary for Contractor to complete
such cure.

 

Upon any Default hereunder by Contractor, Customer may, subject to Articles 19
and 26 hereof, pursue any legal remedies it may have under applicable law or
principles of equity.

 

16.6                           FORCE MAJEURE

 

Any failure or delay by Customer, a User or Contractor in the performance of its
obligations under this Agreement shall not be deemed a Default of this Agreement
to the extent such failure or delay is directly or indirectly caused by fire,
flood, earthquake, elements of nature or acts of God, acts of war, terrorism,
riots, civil disorders, rebellions or revolutions in the United States or
Canada, court order, or the occurrence of a Force Majeure Event (as otherwise
defined herein) affecting the non-performing Party’s first-tier suppliers,
subcontractors or agents (i.e.,not subcontractors of subcontractors), or any
other similar cause beyond the reasonable control of such Party and without the
fault or negligence of such Party and which cannot be reasonably circumvented by
the non-performing Party through the use of alternate sources, workaround plans
or other means (each, a “Force Majeure Event”).  Notwithstanding the foregoing,
any

 

--------------------------------------------------------------------------------

 

failure or delay by Contractor which results from Contractor’s failure to comply
with a requirement of this Agreement intended to prevent such a failure shall
not be considered subject to this Article.

 

Notwithstanding the foregoing, Contractor’s liability for loss or damage to
Customer’s material in Contractor’s possession or control shall not be modified
by this clause.

 

ws51D.tmp

 

--------------------------------------------------------------------------------