Document:

ex10_2.htm

Exhibit 10.2

 

INTERCREDITOR AGREEMENT

 

This INTERCREDITOR AGREEMENT, dated as of this 15 day of April, 2011 (this “Agreement”), is among:  (1) THE SHERIDAN GROUP, INC. (“TSG” or the “Company”); (2) THE SUBSIDIARIES OF TSG IDENTIFIED ON THE SIGNATURE PAGES HERETO (together with other subsidiaries of TSG parties hereto from time to time, the “Guarantors”); (3) THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as trustee for the Noteholders pursuant to the Indenture referred to below and as collateral agent for the Noteholders pursuant to the Collateral Agreements referred to in the Indenture (together with its successors and assigns in such capacities, the “Trustee”); and (4) BANK OF AMERICA, N.A., as administrative agent (together with its successors and assigns in such capacity, the “Agent”).

Background

A.       TSG is party to a certain Indenture, dated as of the date hereof (as the same may be amended, restated, modified, supplemented, refinanced and/or replaced from time to time consistent with the provisions hereof, the “Indenture”) with the Trustee.  Pursuant to the Indenture, the Company issued certain promissory notes (together with any other promissory notes issued thereunder from time to time, the “Indenture Notes”) in an original aggregate principal amount equal to $150,000,000.  The Guarantors have guaranteed the obligations of the Company in respect of the Indenture, the Indenture Notes and related agreements and instruments.

B.       TSG is also party to a certain Amended and Restated Credit Agreement, dated as of the date hereof (as the same may be amended, restated, modified, supplemented, refinanced and/or replaced from time to time consistent with the provisions hereof, the “Credit Agreement”), among TSG, the Agent and the lenders party thereto.  Pursuant to the Credit Agreement, the lenders thereunder (the “Lenders”) have agreed to extend credit in an original aggregate principal amount not to exceed $15,000,000.  The Guarantors have guaranteed the obligations of the Company in respect of the Credit Agreement, the letters of credit issued thereunder, the related notes and other related agreements and instruments.

C.       In connection with the Indenture, the Credit Agreement, the related guarantees and notes and certain other agreements and instruments entered into in connection therewith, the Company and Guarantors have granted a lien on substantially all of their assets to secure their obligations thereunder.

D.       The Trustee and the Agent wish to clarify their relative rights with respect to the collateral and certain related matters as set forth below.

NOW THEREFORE, intending to be legally bound the parties hereto agree as follows.

  

  

  

	
1.

	
Definitions.  The following terms shall be used in this Agreement as defined below.

	
  

	
1.1

	
“Bank Documents” means, collectively, the Credit Agreement, letters of credit, notes, collateral documents, guarantees, interest rate protection agreements and other agreements and instruments entered into under or in connection with the Credit Agreement from time to time, in each case as the same may be amended, restated, modified, supplemented, refinanced and/or replaced from time to time consistent with the provisions hereof.

	
  

	
1.2

	
“Bank Excluded Assets” means assets, if any, that are expressly excluded from collateral under the terms of the Bank Documents.

	
  

	
1.3

	
“Bank Junior Lien” means the Lien in favor of the Agent in respect of the Note Priority Collateral.

	
  

	
1.4

	
“Bank Maximum Amount” means, with respect to Bank Obligations, up to the Bank Permitted Principal Amount in principal amount outstanding, plus all indebtedness or other liabilities arising under or out of secured hedging agreements or cash management agreements not prohibited by the Indenture, plus all related interest, fees, costs, indemnities and expenses.

	
  

	
1.5

	
“Bank Obligations” means all obligations of the Obligors under the Bank Documents including, without limitation, principal of and interest on the notes (including, without limitation, interest accruing at the then applicable rate provided in the Bank Documents after the maturity date of the notes and interest accruing at the then applicable rate provided in the Bank Documents after the filing of any petition in bankruptcy, or the commencement of any Insolvency Proceeding relating to the Obligors whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), reimbursement obligations in respect of letters of credit, obligations under interest rate protection agreements, all indemnities, costs and expenses, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred under or pursuant to the Bank Documents.

	
  

	
1.6

	
“Bank Permitted Principal Amount” shall have the meaning ascribed to such term in Section 11.2.

	
  

	
1.7

	
“Bank Priority Collateral” means (a) all assets constituting personal property (whether tangible or intangible), now owned or hereafter acquired by the Company or any Guarantor or in which the Company or any Guarantor now or in the future has an interest and including, without limitation, all equity interests in subsidiaries and proceeds thereof but excluding the Note Priority Collateral and (b) the equity of the Company and proceeds thereof, provided, however, Bank Priority Collateral shall not include Bank Excluded Assets.

	
  

	
1.8

	
“Bankruptcy Code” means The Bankruptcy Code of 1978, as amended from time to time (11 U.S.C. Sections 101 et seq.), and any replacement or successor act that has a substantially similar purpose.

  

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1.9

	
“Bank Senior Lien” means the Lien in favor of the Agent in respect of the Bank Priority Collateral.

	
  

	
1.10

	
“Collateral Enforcement Action” means the exercise of any rights and remedies available to the Agent or the Trustee, as applicable, pursuant to any agreement or under applicable law to enforce its rights and remedies relative to any collateral security provided for in the Bank Documents or Note Documents, as applicable, including, without limitation, (a) the commencement of any action, suit or other proceeding against any Obligors to foreclose (whether in strict foreclosure or otherwise), attach, seize, sell or otherwise to realize upon any of the security, (b) the exercise of any rights of set-off, (c) any notification by a secured party to an account debtor with respect to any account constituting collateral, which notification would direct such account debtor to remit payments with respect to such account to the notifying party and (d) the collection, possession, removal or sale of any collateral or the exercise of any other self-help remedy.

	
  

	
1.11

	
“Common Collateral” means all of the assets of any Obligor, whether now owned or hereafter existing and whether real, personal or mixed.

	
  

	
1.12

	
“Excess Bank Obligations” means any and all Bank Obligations in excess of the Bank Maximum Amount.

	
  

	
1.13

	
“Excess Note Obligations” means any and all Note Obligations in excess of the Note Maximum Amount.

	
  

	
1.14

	
“Insolvency Proceeding” means any receivership, conservatorship, general meeting of creditors, insolvency or bankruptcy proceeding, assignment for the benefit of creditors, or any proceeding or action by or against any of the Obligors for any relief under the Bankruptcy Code or any other insolvency law or other laws relating to the relief of debtors, readjustment of indebtedness, reorganizations, dissolution, liquidation, compositions or extensions, or the appointment of any receiver, intervenor or conservator of, or trustee, or similar officer for, any of the Obligors or any substantial part of its properties or assets.

	
  

	
1.15

	
“Lien” means any mortgage, security interest, pledge, hypothecation, lien or similar encumbrance.

	
  

	
1.16

	
“Liquidation” means the legal termination, winding up or dissolution of an Obligor and/or the liquidation of all or substantially all of the assets of an Obligor other than a legal termination, winding up, dissolution or liquidation of a Guarantor in connection with a merger or disposition permitted by the terms of the Note Documents and the Bank Documents.

	
  

	
1.17

	
“Note Documents” means, collectively, the Indenture, the Indenture Notes, collateral documents, guarantees, and other agreements and instruments entered into under or in connection with the Indenture from time to time, in each case as the same may be amended, restated, modified, supplemented, refinanced and/or replaced from time to time consistent with the provisions hereof.

  

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1.18

	
“Note Excluded Assets” means assets that are expressly excluded from collateral under the terms of the Note Documents.

	
  

	
1.19

	
“Noteholders” means the holders of the Notes from time to time.

	
  

	
1.20

	
“Note Junior Lien” means the Lien in favor of the Trustee in respect of the Bank Priority Collateral.

	
  

	
1.21

	
“Note Maximum Amount” means, with respect to the Note Obligations, up to the Note Permitted Principal Amount in principal amount outstanding, plus all related interest, fees, costs, indemnities and expenses.

	
  

	
1.22

	
“Note Obligations” means all obligations of the Obligors under the Note Documents including, without limitation, principal of and interest on the Notes (including, without limitation, interest accruing at the then applicable rate provided in the Note Documents after the maturity date of the Notes and interest accruing at the then applicable rate provided in the Note Documents after the filing of any petition in bankruptcy, or the commencement of any Insolvency Proceeding relating to the Obligors whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), all indemnities, costs and expenses, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred under or pursuant to the Note Documents.

	
  

	
1.23

	
“Note Permitted Principal Amount” shall have the meaning ascribed to such term in Section 11.6.

	
  

	
1.24

	
“Note Priority Collateral” means all real property, equipment and fixtures, now owned or hereafter acquired by the Company or any Guarantor or in which the Company or any Guarantor now or in the future has an interest, together with all proceeds thereof resulting from a sale or other disposition thereof (including without limitation any deposit accounts or securities accounts in which such proceeds are deposited), provided, however, Note Priority Collateral shall not include Note Excluded Assets.

	
  

	
1.25

	
“Note Senior Lien” means the Lien in favor of the Trustee in respect of the Note Priority Collateral.

	
  

	
1.26

	
“Obligors” means, collectively, the Company and the Guarantors.

	
2.

	
Priority of Security Interests and Obligations.

	
  

	
2.1

	
Pari Passu Obligations.  The payment obligations of the Obligors under the Note Documents and Bank Documents are all senior secured obligations of the Obligors, ranking equally in priority of payment except certain payments in respect of or arising out of Liens as provided herein.

  

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2.2

	
Priority of Security Interest in Bank Priority Collateral.  The Bank Senior Lien shall at all times be and remain superior and prior in right of payment and enforcement to the Note Junior Lien and the Note Junior Lien shall at all times be junior and subordinate to the Bank Senior Lien with respect to the Bank Priority Collateral, in each case up to, but not in excess of, the Bank Maximum Amount.

	
  

	
2.3

	
Priority of Security Interest in Note Priority Collateral  The Note Senior Lien shall at all times be and remain superior and prior in right of payment and enforcement to the Bank Junior Lien and the Bank Junior Lien shall at all times be junior and subordinate to the Note Senior Lien with respect to the Note Priority Collateral, in each case up to, but not in excess of, the Note Maximum Amount.

	
  

	
2.4

	
Third Party Security Interest.  To the extent that the Bank Junior Lien or the Note Junior Lien has priority over any Liens in favor of any third party with respect to the applicable collateral (including, but not limited to, any trustee or similar party under the Bankruptcy Code), under law or contract, or priority over the claims of unsecured creditors, nothing in this Agreement shall alter that priority.

	
3.

	
Enforcement Actions Against Collateral.

	
  

	
3.1

	
Collateral Enforcement Action by the Trustee in Respect of Note Priority Collateral.  The Trustee may, at any time and from time to time, take or refrain from taking, any Collateral Enforcement Action with respect to the Note Priority Collateral, without notice to or provision for the Agent except as expressly provided herein.

	
  

	
3.2

	
Collateral Enforcement Action by the Trustee in Respect of Bank Priority Collateral.  Until the indefeasible payment in full in cash of the Bank Obligations and the termination of any commitment by the Lenders to extend credit under the Credit Agreement and/or termination of any provision by the Lenders for a voluntary line of credit under the Credit Agreement, as applicable (or unless the Agent consents in its sole discretion), the Agent and the Lenders shall have the exclusive right to take any Collateral Enforcement Action with respect to the Bank Priority Collateral; provided that the Trustee may commence a Collateral Enforcement Action with respect to the Bank Priority Collateral if (a) 90 days have elapsed since the Trustee notified the Agent of the occurrence of a Default under and as defined in the Indenture and the Trustee’s intention to commence its exercise of remedies subject to the terms of this Agreement, and (b) the Agent or the Lenders are not then diligently pursuing any Collateral Enforcement Action with respect to all or a material portion of the Bank Priority Collateral or diligently attempting to vacate any stay or prohibition against such exercise.  Notwithstanding any provision of this Agreement, the Trustee may (but is under no obligation to):

	
  

	
(i)

	
file a proof of claim or statement of interest, vote on a plan of reorganization (including a vote to accept or reject a plan of partial or complete liquidation, reorganization, arrangement, composition, or extension), and make other filings, arguments, and motions, with respect to the Note Obligations and the Note Priority Collateral in any Insolvency Proceeding commenced by or against any Obligor, in each case in accordance with this Agreement,

  

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(ii)

	
take action to create, perfect, preserve, or protect its Lien on the Common Collateral, so long as such actions are not adverse to the priority status in accordance with this Agreement of Liens on the Common Collateral securing the Bank Obligations or the Agent's  rights to exercise remedies,

	
  

	
(iii)

	
file necessary pleadings in opposition to a claim objecting to or otherwise seeking the disallowance of any Note Obligation or a Note Junior Lien,

	
  

	
(iv)

	
join (but not exercise any control over) a judicial foreclosure or Lien enforcement proceeding with respect to the Common Collateral initiated by the Agent, to the extent that such action could not reasonably be expected to interfere materially with such Collateral Enforcement Action, but the Trustee may not receive any proceeds thereof unless expressly permitted herein,

	
  

	
(v)

	
bid for or purchase Common Collateral at any public, private, or judicial foreclosure upon such Common Collateral initiated by the Agent, or any sale of Common Collateral during an Insolvency Proceeding; provided that such bid may not include a “credit bid” in respect of any Note Obligations unless the proceeds of such bid are otherwise sufficient to cause the payment if full in cash of the Bank Obligations, and

	
  

	
(vi)

	
exercise any rights and remedies that could be exercised by an unsecured creditor (other than initiating or joining in an involuntary case or proceeding under the Bankruptcy Code with respect to an Obligor) against an Obligor in accordance with the terms of the Note Documents and applicable law, provided that any judgment Lien obtained by the Trustee as a result of such exercise of rights will be subject to this Agreement for all purposes.

	
  

	
3.3

	
Collateral Enforcement Action by Agent in Respect of Bank Priority Collateral.  The Agent may, at any time and from time to time, take or refrain from taking, any Collateral Enforcement Action with respect to the Bank Priority Collateral, without notice to or provision for the Trustee or the Noteholders except as expressly provided herein.

	
  

	
3.4

	
Collateral Enforcement Action by Agent in Respect of Note Priority Collateral.  Until the indefeasible payment in full in cash of the Note Obligations or a defeasance of the obligations under the Indenture (or unless the Trustee otherwise consents at the direction of the requisite Noteholders), the Trustee shall have the exclusive right to take any Collateral Enforcement Action with respect to the Note Priority Collateral; provided that the Agent or the Lenders may commence a Collateral Enforcement Action with respect to the Note Priority Collateral if (a) 90 days have elapsed since the Agent notified the Trustee of the occurrence of a Default under and as defined in the Credit Agreement and the Agent’s intention to commence its exercise of remedies subject to the terms of this Agreement, and (b) the Trustee is not then diligently pursuing any Collateral Enforcement Action with respect to all or a material portion of the Note Priority Collateral or diligently attempting to vacate any stay or prohibition against such exercise.  Notwithstanding any provision of this Agreement, the Agent or the Lenders may:

  

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(i)

	
file a proof of claim or statement of interest, vote on a plan of reorganization (including a vote to accept or reject a plan of partial or complete liquidation, reorganization, arrangement, composition, or extension), and make other filings, arguments, and motions, with respect to the Bank Obligations and the Bank Priority Collateral in any Insolvency Proceeding commenced by or against any Obligor, in each case in accordance with this Agreement,

	
  

	
(ii)

	
take action to create, perfect, preserve, or protect its Lien on the Common Collateral, so long as such actions are not adverse to the priority status in accordance with this Agreement of Liens on the Common Collateral securing the Note Obligations or the Trustee's  rights to exercise remedies,

	
  

	
(iii)

	
file necessary pleadings in opposition to a claim objecting to or otherwise seeking the disallowance of any Bank Obligation or a Bank Junior Lien,

	
  

	
(iv)

	
join (but not exercise any control over) a judicial foreclosure or Lien enforcement proceeding with respect to the Common Collateral initiated by the Trustee, to the extent that such action could not reasonably be expected to interfere materially with such Collateral Enforcement Action, but the Agent may not receive any proceeds thereof unless expressly permitted herein,

	
  

	
(v)

	
bid for or purchase Common Collateral at any public, private, or judicial foreclosure upon such Common Collateral initiated by the Trustee, or any sale of Common Collateral during an Insolvency Proceeding; provided that such bid may not include a “credit bid” in respect of any Bank Obligations unless the proceeds of such bid are otherwise sufficient to cause the payment if full in cash of the Note Obligations, and

	
  

	
(vi)

	
exercise any rights and remedies that could be exercised by an unsecured creditor (other than initiating or joining in an involuntary case or proceeding under the Bankruptcy Code with respect to an Obligor) against an Obligor in accordance with the terms of the Note Documents and applicable law, provided that any judgment Lien obtained by the Agent as a result of such exercise of rights will be subject to this Agreement for all purposes.

  

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4.

	
Distributions From Dispositions of Collateral; Bankruptcy or Liquidation.

	
  

	
4.1

	
Proceeds of Note Priority Collateral in General.  Until the indefeasible payment in full in cash of the Note Obligations or a defeasance of the obligations under the Indenture (or unless the Trustee consents at the direction of the requisite Noteholders), except for a sale or other disposition in connection with an Insolvency Proceeding or Liquidation of an Obligor (which sale or other disposition shall be governed by Section 4.2), in the event of a sale or other disposition by the Trustee (whether in connection with a Collateral Enforcement Action or otherwise) of any or all of the Note Priority Collateral, except as otherwise provided in the Note Documents, proceeds of such sale or other disposition shall be applied:

	
  

	
(i)

	
first, by the Trustee to the Note Obligations up to, but not in excess of, the Note Maximum Amount, in such order as specified in the Indenture;

	
  

	
(ii)

	
second, by the Agent to the Bank Obligations up to, but not in excess of, the Bank Maximum Amount, in such order as specified in the relevant Bank Documents (or, if an order is not specified in the Bank Documents, in such order determined by the Agent in its sole discretion);

	
  

	
(iii)

	
third, by the Trustee to the Excess Note Obligations, in such order as specified in the Indenture;

	
  

	
(iv)

	
fourth, by the Agent to the Excess Bank Obligations, in such order as specified in the relevant Bank Documents (or, if an order is not specified in the Bank Documents, in such order determined by the Agent in its sole discretion); and

	
  

	
(v)

	
fifth, to the applicable Obligor, or its successors or assigns, or to whosoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct, of any surplus then remaining from such proceeds.

	
  

	
4.2

	
Distributions in Respect of Note Priority Collateral in Insolvency Proceeding or Liquidation.  Notwithstanding any other provisions of this Agreement, until the indefeasible payment in full in cash of the Note Obligations or a defeasance of the obligations under the Indenture, in the event of any distribution, division or application, partial or complete, voluntary or involuntary, by operation of law or otherwise, of all or any part of the assets of an Obligor or the proceeds thereof, to creditors of such Obligor by reason of a Liquidation or Insolvency Proceeding, then and in any such event any payment or distribution or benefit of any kind whatsoever or character, whether in cash, securities or other property in respect of or arising out of the Note Priority Collateral shall be applied in the order specified in Section 4.1.

	
  

	
4.3

	
Proceeds of Bank Priority Collateral in General.  Until the indefeasible payment in full in cash of the Bank Obligations and the termination of any commitment by the Lenders to extend credit under the Credit Agreement and/or termination of any provision by the Lenders for a voluntary line of credit under the Credit Agreement, as applicable (or unless the Agent consents in its sole discretion), except for a sale or other disposition in connection with an Insolvency Proceeding or Liquidation of an Obligor (which sale or other disposition shall be governed by Section 4.4), in the event of a sale or other disposition by the Agent (whether in connection with a Collateral Enforcement Action or otherwise) of any or all of the Bank Priority Collateral of such Obligor, except as otherwise provided in the Bank Documents, all proceeds of such sale or other disposition shall be applied:

  

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(i)

	
first, by the Agent to the Bank Obligations up to, but not in excess of, the Bank Maximum Amount, in such order as specified in the relevant Bank Documents (or, if an order is not specified in the Bank Documents, in such order determined by the Agent in its sole discretion);

	
  

	
(ii)

	
second, by the Trustee to the Note Obligations up to, but not in excess of, the Note Maximum Amount, in such order as specified in the Indenture;

	
  

	
(iii)

	
third, by the Agent to the Excess Bank Obligations, in such order as specified in the relevant Bank Documents (or, if an order is not specified in the Bank Documents, in such order determined by the Agent in its sole discretion);

	
  

	
(iv)

	
fourth, by the Trustee to the Excess Note Obligations, in such order as specified in the Indenture; and

	
  

	
(v)

	
fifth, to the applicable Obligor, or its successors or assigns, or to whosoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct, of any surplus then remaining from such proceeds.

	
  

	
4.4

	
Distributions in Respect of Bank Priority Collateral in Insolvency Proceeding or Liquidation.  Notwithstanding any other provisions of this Agreement, until the indefeasible payment in full in cash of the Bank Obligations and the termination of any commitment by the Lenders to extend credit under the Credit Agreement and/or termination of any provision by the Lenders for a voluntary line of credit under the Credit Agreement, as applicable (or unless the Agent consents in its sole discretion), in the event of any distribution, division or application, partial or complete, voluntary or involuntary, by operation of law or otherwise, of all or any part of the assets of an Obligor or the proceeds thereof, to creditors of such Obligor by reason of a Liquidation or Insolvency Proceeding, then and in any such event any payment or distribution or benefit of any kind whatsoever or character, whether in cash, securities or other property in respect of or arising out of the Bank Priority Collateral shall be applied in the order specified in Section 4.3.

  

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5.

	
Release of Junior Liens in Connection with Sales or other Dispositions of Collateral.

	
  

	
5.1

	
Release of Note Priority Collateral in Connection with Collateral Enforcement Action.  At the request of the Trustee, the Agent shall release its Lien on the Note Priority Collateral in connection with any transfer, sale or other disposition pursuant to a Collateral Enforcement Action (including, without limitation, in an action for strict foreclosure) related to such Note Priority Collateral so that such collateral may be transferred, sold or otherwise disposed of free of the Bank Junior Lien.

	
  

	
5.2

	
Release of Note Priority Collateral in Connection with Sale Under Indenture.  If any Note Priority Collateral is transferred, sold or otherwise disposed of by the applicable Obligor in accordance with the terms of the Indenture and if, in connection therewith, the Trustee releases the Note Senior Lien on such collateral, at the request of the Trustee, the Agent shall release the Bank Junior Lien on such collateral, provided, however, that nothing herein shall serve to waive any default under the Bank Documents if such transfer, sale or other disposition is not permitted by the terms thereof.

	
  

	
5.3

	
Release of Bank Priority Collateral in Connection with Collateral Enforcement Action. At the request of the Agent, the Trustee shall release its Lien on Bank Priority Collateral in connection with any transfer, sale or other disposition pursuant to a Collateral Enforcement Action (including, without limitation, in an action for strict foreclosure) related to such Bank Priority Collateral so that such collateral may be transferred, sold or otherwise disposed of free of the Note Junior Lien.

	
  

	
5.4

	
Release of Bank Priority Collateral in Connection with Sale Under Credit Agreement. If any Bank Priority Collateral is transferred, sold or otherwise disposed of by the applicable Obligor in accordance with the terms of the Credit Agreement and if, in connection therewith, the Agent releases the Bank Senior Lien on such collateral, at the request of the Agent, the Trustee shall release the Note Junior Lien on such collateral, provided, however, that nothing herein shall serve to waive any default under the Note Documents if such transfer, sale or other disposition is not permitted by the terms thereof.

	
6.

	
Certain Notices.

	
  

	
6.1

	
The Agent shall give the Trustee such notices of sales or other dispositions of the Bank Priority Collateral as is expressly provided in this Agreement.

	
  

	
6.2

	
The Trustee shall give the Agent such notices of sales or other dispositions of the Note Priority Collateral as is expressly provided in this Agreement.

	
  

	
6.3

	
The Company shall immediately give the Trustee a copy of any notice of acceleration it receives from the Agent.  The Company shall immediately give the Agent a copy of any notice of acceleration it receives from the Trustee.

  

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7.

	
Further Assurances; Cooperation of Parties.

	
  

	
7.1

	
Trustee Authorized to Act.  The Agent hereby authorizes and empowers the Trustee, in its discretion, to demand, sue for, collect and receive every payment or distribution in respect of and give acquittance for the Note Priority Collateral as necessary or advisable or as the Trustee may deem necessary or advisable for the enforcement of this Agreement and to collect all payments, distributions or disbursements made thereon in whatever form the same may be paid or issued, and, in its discretion, to apply the same on account of any of the Note Obligations, without regard to the validity of the Bank Junior Lien.  In furtherance of the foregoing, the Agent agrees duly and promptly to take such action as may be reasonably requested by the Trustee to assist in the collection of the Note Priority Collateral for the account of the Trustee and to execute and deliver to the Trustee on demand such powers of attorney, proofs of claim, assignments of claim or other instruments as may be reasonably requested by the Trustee to enable the Trustee to enforce any and all rights upon or with respect to the Note Priority Collateral, and to collect and receive any and all payments or distributions which may be payable or deliverable at any time upon or with respect to the Note Priority Collateral as if the Bank Junior Liens had originally been granted in favor of the Trustee.

	
  

	
7.2

	
Payments For the Benefit of Trustee.  If any payment in respect of Note Priority Collateral is received by the Agent in violation of the terms of this Agreement prior to the indefeasible payment in full in cash of the Note Obligations or a defeasance of the obligations under the Indenture (unless consented to by the Trustee at the direction of the requisite Noteholders) the payment or distribution to the Agent shall be received in trust for the benefit of the Trustee and the Agent will forthwith deliver the same to the Trustee in precisely the form received (except for the endorsement of or assignment by the Agent where necessary), for application to the Note Obligations, whether then due or not due in such order and manner as the Trustee may elect.

	
  

	
7.3

	
Appointment of Agent as Representative.  If at any time perfection of the Lien on any Bank Priority Collateral or Note Priority Collateral is effected by possession or control and the Agent (but not the Trustee) has such possession or control of such Bank Priority Collateral or Note Priority Collateral, the Trustee hereby appoints the Agent as its non-exclusive representative for purposes of perfection by possession or control and the Agent hereby accepts such appointment, provided that, the Agent shall not incur liability to the Trustee by virtue of acting as its representative hereby.  The Agent agrees that, upon the indefeasible payment in full in cash of the Bank Obligations and the termination of any commitment by the Lenders to extend credit under the Credit Agreement and/or termination of any provision by the Lenders for a voluntary line of credit under the Credit Agreement, as applicable, and provided that any Note Obligations are still outstanding, it shall promptly transfer possession or control of such collateral to the Trustee.

  

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7.4

	
General Further Assurances by Agent.  The Agent agrees to take such further action as is reasonably requested by the Trustee to effect the purposes hereof.

	
  

	
7.5

	
Limitations on Required Agent Actions. Notwithstanding anything herein to the contrary, the Agent shall not be obligated to take action (a) that could, in the reasonable determination of the Agent, expose the Agent to any liability that would not be fully reimbursed by the Company as a result of the indemnification provided herein or otherwise (which determination may take account of the financial condition of the Company) or other indemnification reasonably satisfactory to the Agent or (b) that could, in the reasonable determination of the Agent, cause the Agent to incur costs or expenses that would not be fully reimbursed by the Company as a result of the expense reimbursement provision provided herein or otherwise (which determination may take account of the financial condition of the Company) or other cost reimbursement provision reasonably satisfactory to the Agent.

	
  

	
7.6

	
Agent Authorized to Act.  The Trustee hereby authorizes and empowers the Agent, in its discretion, to demand, sue for, collect and receive every payment or distribution in respect of and give acquittance for the Bank Priority Collateral as the Agent may deem necessary or advisable for the enforcement of this Agreement and to collect all payments, distributions or disbursements made thereon in whatever form the same may be paid or issued, and, in its discretion, to apply the same on account of any of the Bank Obligations, without regard to the validity of the Note Junior Lien.  In furtherance of the foregoing, the Trustee agrees duly and promptly to take such action as may be reasonably requested by the Agent to assist in the collection of the Bank Priority Collateral for the account of the Agent and to execute and deliver to the Agent on demand such powers of attorney, proofs of claim, assignments of claim or other instruments as may be reasonably requested by the Agent to enable the Agent to enforce any and all rights upon or with respect to the Bank Priority Collateral, and to collect and receive any and all payments or distributions which may be payable or deliverable at any time upon or with respect to the Bank Priority Collateral as if the Note Junior Liens had originally been granted in favor of the Agent.

	
  

	
7.7

	
Payments For the Benefit of Agent.  If any payment in respect of Bank Senior Collateral is received by the Trustee in violation of the terms of this Agreement prior to the indefeasible payment in full in cash of the Bank Obligations and the termination of any commitment by the Lenders to extend credit under the Credit Agreement and/or termination of any provision by the Lenders for a voluntary line of credit under the Credit Agreement, as applicable (or unless the Agent consents in its sole discretion), the payment or distribution to the Trustee shall be received in trust for the benefit of the Agent and the Trustee will forthwith deliver the same to the Agent in precisely the form received (except for the endorsement of or assignment by the Trustee where necessary), for application to the Bank Obligations, whether then due or not due in such order and manner as the Agent may elect.

  

12

  

	
  

	
7.8

	
Appointment of Trustee as Representative.  If at any time perfection of the Lien on any Bank Priority Collateral or Note Priority Collateral is effected by possession or control and the Trustee (but not the Agent) has such possession or control of such Bank Priority Collateral or Note Priority Collateral, the Agent hereby appoints the Trustee as its non-exclusive representative for purposes of perfection by possession or control and the Trustee hereby accepts such appointment, provided that, the Trustee shall not incur liability to the Agent by virtue of acting as its representative hereby.  The Trustee agrees that, upon the indefeasible payment in full in cash of the Note Obligations and provided that any Bank Obligations are still outstanding, it shall promptly transfer possession or control of such collateral to the Agent.

	
  

	
7.9

	
General Further Assurances by the Trustee.  The Trustee agrees to take such further action as is reasonably requested by the Agent to effect the purposes hereof.

	
  

	
7.10

	
Limitations on Required Trustee Actions. Notwithstanding anything herein to the contrary, the Trustee shall not be obligated to take action (a) that could, in the reasonable determination of the Trustee, expose the Trustee to any liability that would not be fully reimbursed by the Company as a result of the indemnification provided herein or otherwise (which determination may take account of the financial condition of the Company) or other indemnification reasonably satisfactory to the Trustee or (b) that could, in the reasonable determination of the Trustee, cause the Trustee to incur costs or expenses that would not be fully reimbursed by the Company as a result of the expense reimbursement provision provided herein or otherwise (which determination may take account of the financial condition of the Company) or other cost reimbursement provision reasonably satisfactory to the Trustee.

	
  

	
7.11

	
General Further Assurances by Company.  The Company agrees to take such further action as is reasonably requested by the Agent or the Trustee to effect the purposes hereof.  Without limiting the generality of the foregoing, the Company shall provide the Agent and the Trustee with access to its properties as contemplated in Section 8 below.

	
8.

	
Limited Right of Access.

	
  

	
8.1

	
Without limiting any rights the Agent may otherwise have under applicable law or by agreement, and so long as the Trustee has not commenced, or is not continuing, a Collateral Enforcement Action with respect to any particular Note Priority Collateral, the Agent may, during normal business hours, access Bank Priority Collateral that (A) is stored or located in or on, (B) has become an accession with respect to (within the meaning of Section 9-335 of the Uniform Commercial Code), or (C) has been commingled with (within the meaning of Section 9-336 of the Uniform Commercial Code), such  Note Priority Collateral (collectively, the “Bank Commingled Collateral”),  for the limited purposes of assembling, inspecting, copying or downloading information stored on, taking actions to perfect its Lien on, completing a production run of inventory involving, taking possession of, moving, selling storing or taking Collateral Enforcement Actions with respect to, the Bank Commingled Collateral (collectively, “Lender Permitted Access Purposes”).

  

13

  

	
  

	
8.2

	
Without limiting any rights the Trustee may otherwise have under applicable law or by agreement, and so long as the Agent has not commenced, or is not continuing, a Collateral Enforcement Action with respect to any particular Bank Priority Collateral, the Trustee may, during normal business hours, access Note Priority Collateral that (A) is stored or located in or on, (B) has become an accession with respect to (within the meaning of Section 9-335 of the Uniform Commercial Code), or (C) has been commingled with (within the meaning of Section 9-336 of the Uniform Commercial Code), such  Bank Priority Collateral (collectively, the “Note Commingled Collateral”), for the limited purposes of assembling, inspecting, copying or downloading information stored on, taking actions to perfect its Lien on, operating, taking possession of, moving, selling storing or taking Collateral Enforcement Actions with respect to, the Note Commingled Collateral (collectively, “Trustee Permitted Access Purposes”).

	
  

	
8.3

	
Without limiting any rights the Agent may otherwise have under applicable law or by agreement and at any time that the Trustee has commenced, and is continuing, a Collateral Enforcement Action with respect to any particular Note Priority Collateral, the Agent may, during normal business hours, access the related Bank Commingled Collateral for Lender Permitted Access Purposes until the consummation of any sale of such Note Priority Collateral; provided that, the Agent shall use commercially reasonable efforts to not interfere with the Trustee’s Collateral Enforcement Action; and provided further that the Trustee shall give the Agent at least 30 days’ prior written notice (or such shorter period as shall be agreed to by the Agent), of the consummation of the  sale of such Note Priority Collateral or (b) arrange for the Agent to access the related Note Priority Collateral notwithstanding such sale.  The Agent’s access rights under this Section 8.3 and Section 8.1 are collectively referred to as the “Lender’s Access Right”.  The Trustee shall give Agent written notice within three (3) days after it commences any Collateral Enforcement Action referenced in subsections (a) or (d) of the definition of such term.

	
  

	
8.4

	
Without limiting any rights the Trustee may otherwise have under applicable law or by agreement and at any time that the Agent has commenced, and is continuing, a Collateral Enforcement Action with respect to any particular Bank Priority Collateral, the Trustee may, during normal business hours, access the related Note Commingled Collateral for Trustee Permitted Access Purposes until the consummation of any sale of such Bank Priority Collateral; provided that, the Trustee shall use commercially reasonable efforts to not interfere with the Agent’s Collateral Enforcement Action; and provided further that the Agent shall (a) give the Trustee at least 30 days’ prior written notice (or such shorter period as shall be agreed to by the Agent), of the consummation of the  sale of such Bank Priority Collateral or (b) arrange for the Trustee to access the related Note Priority Collateral notwithstanding such sale.  The Trustee’s access rights under this Section 8.4 and Section 8.2 are collectively referred to as the “Trustee’s Access Right”.  The Agent shall give the Trustee written notice within three (3) days after it commences any Collateral Enforcement Action referenced in subsections (a) or (d) of the definition of such term against tangible Bank Priority Collateral.

  

14

  

	
  

	
8.5

	
The Agent confirms that, in the event of the sale or other transfer of or exercise of any Collateral Enforcement Action respecting the Bank Priority Collateral, none of the Note Priority Collateral shall be sold or otherwise transferred with the Bank Priority Collateral (without the Trustee’s consent) or shall be damaged or destroyed in connection therewith.

	
  

	
8.6

	
The Trustee shall use commercially reasonable efforts to not hinder or obstruct the Agent from exercising the Lender’s Access Right.  The Agent shall use commercially reasonable efforts to not hinder or obstruct the Trustee from exercising the Trustee’s Access Right.

	
  

	
8.7

	
The Trustee confirms that, in the event of the sale or other transfer of or exercise of any Collateral Enforcement Action respecting the Note Priority Collateral, none of the Bank Priority Collateral shall be sold or otherwise transferred with the Note Priority Collateral (without the Agent’s consent) or shall be damaged or destroyed in connection therewith.

	
9.

	
Certain Waivers.

	
  

	
9.1

	
Validity of Note Senior Lien. The Agent waives any right to contest the validity, perfection, enforceability or priority of the Note Senior Lien, whether in connection with an Insolvency Proceeding or otherwise.

	
  

	
9.2

	
Certain Waivers of Agent Relative to Note Priority Collateral, Marshalling, Etc.  The Agent waives (a) any right it may have to object to any sale or other disposition of or realization on Note Priority Collateral by or on behalf of the Trustee, including, without limitation, on the grounds of failure to provide adequate notice, so long as the Agent shall have received at least five business days’ notice of such sale or other disposition (which notice is deemed to be reasonable by the Agent) (b) any right to claim or take advantage of any appraisal, valuation, stay, extension, moratorium, turnover, redemption or similar law that may prevent, delay, hinder or otherwise adversely affect a Collateral Enforcement Action relative to any Note Priority Collateral, (c) any right it may have to require the Trustee to marshal any assets of the Obligors in favor of the Agent, (d) any rights of subrogation relative to the Note Priority Collateral, and (e) presentment, demand, protest and notice of any kind (except as expressly required herein), in each case to the fullest extent permitted by applicable law.  Without limiting the generality of the foregoing, except to the extent specifically provided for in this Agreement, the Agent hereby agrees that any lawful action taken by or on behalf of the Trustee in the exercise of any Collateral Enforcement Action in respect of the Note Priority Collateral shall be deemed to be consented to and approved by the Agent in all respects, including, without limitation, at the option of the Trustee, the sale or other disposition or realization on or of any or all of the Note Priority Collateral, free of the Bank Junior Lien.

  

15

  

	
  

	
9.3

	
Validity of Bank Senior Lien.  The Trustee waives any right to contest the validity, perfection, enforceability or priority of the Bank Senior Lien, whether in connection with an Insolvency Proceeding or otherwise.

	
  

	
9.4

	
Certain Waivers of Trustee Relative to Bank Priority Collateral, Marshalling, Etc.  The Trustee waives (a) any right it may have to object to any sale or other disposition of or realization on Bank Priority Collateral by or on behalf of the Bank, including, without limitation, on the grounds of failure to provide adequate notice, so long as the Trustee shall have received at least five business days’ notice of such sale or other disposition (which notice is deemed to be reasonable by the Trustee), or on the grounds that equity collateral could yield greater proceeds if it were registered under applicable securities laws, (b) any right to claim or take advantage of any appraisal, valuation, stay, extension, moratorium, turnover, redemption or similar law that may prevent, delay, hinder or otherwise adversely affect a Collateral Enforcement Action relative to any Bank Priority Collateral, (c) any right it may have to require the Bank to marshal any assets of the Obligors in favor of the Trustee, (d) any rights of subrogation relative to the Bank Priority Collateral, and (e) presentment, demand, protest and notice of any kind (except as expressly required herein), in each case to the fullest extent permitted by applicable law.  Without limiting the generality of the foregoing, except to the extent specifically provided for in this Agreement, the Trustee hereby agrees that any lawful action taken by or on behalf of the Agent in the exercise of any Collateral Enforcement Action in respect of the Bank Priority Collateral shall be deemed to be consented to and approved by the Trustee in all respects, including, without limitation, at the option of the Agent, the sale or other disposition or realization on or of any or all of the Bank Priority Collateral, free of the Note Junior Lien.

	
  

	
9.5

	
Waiver of Certain Objections In Connection with Bankruptcy Financing.  If any of the Obligors shall become subject to an Insolvency Proceeding and if the Agent desires to permit the use of any Bank Priority Collateral consisting of cash collateral and/or to provide or permit financing to such Obligor under either Section 363 or Section 364 of the Bankruptcy Code (or any subsequent provision relating to such matters) secured by any Bank Priority Collateral, the Trustee agrees not to object to any such financing secured by Bank Priority Collateral or such use of Bank Priority Collateral consisting of cash collateral on the grounds of a failure to provide “adequate protection” for the Trustee; it being understood that, in the case of any such post-petition financing provided by the Lenders, the Trustee shall have a post-petition Lien on the affected Bank Priority Collateral subordinated to the Agent’s replacement Lien on such collateral to the same extent as the Note Junior Lien is subordinated to the Bank Senior Lien pursuant to this Agreement.

  

16

  

	
10.

	
Continuing Lien Priorities.

	
  

	
10.1

	
The lien priorities provided in this Agreement and obligations and rights of the parties hereunder shall not be altered or otherwise affected by:

	
  

	
(a)

	
the order, time, manner of attachment, perfection or recording of the Liens in favor of the Agent or the Trustee;

	
  

	
(b)

	
any refinancing of or amendments to the terms of or any assignments under the Bank Documents or the Note Documents, subject only to the provisions of Section 11;

	
  

	
(c)

	
any action or inaction by the Agent with respect to the Bank Priority Collateral or its other rights and obligations under the Bank Documents or any action or inaction by the Trustee with respect to the Note Priority Collateral or its other rights and obligations under the Note Documents;

	
  

	
(d)

	
the institution or pendency of any Insolvency Proceeding or Liquidation of any Obligor;

	
  

	
(e)

	
the availability of any other right of the Trustee or the Agent; or

	
  

	
(f)

	
Any other event or condition that could otherwise affect the enforceability of the terms of this Agreement.

	
11.

	
Modifications of Debt Documents, Assignments and Refinancings.

	
  

	
11.1

	
Modifications, Assignments and Refinancings of Bank Obligations in General.  From time to time, the Bank Documents may be amended, restated, modified and/or supplemented, the Bank Obligations may be refinanced pursuant to new Bank Documents and the Agent may assign any or all of its rights and obligations under the Bank Documents, in each case, secured by the Bank Senior Lien and Bank Junior Lien, subject only to the provisions of the following Sections 11.2 and 11.3 below.

	
  

	
11.2

	
Limitations on Amount of Bank Obligations.  Notwithstanding anything else provided herein, until the indefeasible payment in full in cash of the Note Obligations or a defeasance of the obligations under the Indenture (or unless the Trustee otherwise consents at the direction of the requisite Noteholders), if the Agent amends, restates, modifies, supplements, and or refinances the Bank Obligations in any manner that results in the Company being permitted to incur indebtedness in respect of loans under the Bank Documents in an aggregate principal amount (the “Bank Actual Principal Amount”) in excess of $15,000,000 (the “Bank Permitted Principal Amount”), then the excess of the Bank Actual Principal amount over the Bank Permitted Principal Amount (and all interest on (including interest rate protection obligations) and fees in respect of such excess amount) shall not be entitled to the Bank Senior Lien.

  

17

  

	
  

	
11.3

	
Bank Obligations to Remain Subject to this Agreement.  Any amendment, restatement, modification, supplement, and /or refinancing of the Bank Obligations shall be expressly subject to the terms of this Agreement.

	
  

	
11.4

	
No Waiver of Default Under Note Documents. Nothing herein shall serve to waive any default under the Note Documents if such amendment, restatement, modification, supplement, and /or refinancing of the Bank Obligations is not permitted by the terms thereof.

	
  

	
11.5

	
Modifications, Assignments and Refinancings of Note Obligations in General.  From time to time, the Note Documents may be amended, restated, modified and/or supplemented, the Note Obligations may be refinanced pursuant to new Note Documents and the Trustee (and Noteholders) may assign any or all of its (their) rights and obligations under the Note Documents, in each case, secured by the Note Senior Lien and Note Junior Lien, subject only to the provisions of the following Sections 11.6 and 11.7 below.

	
  

	
11.6

	
Limitations on Amount of Note Obligations.  Notwithstanding anything else provided herein, until the indefeasible payment in full in cash of the Bank Obligations and the termination of any commitment by the Lenders to extend credit under the Credit Agreement (or unless the Agent consents in its sole discretion), if the Trustee amends, restates, modifies, supplements, and/or refinances the Note Obligations in any manner that results in the Company being permitted to incur indebtedness under the Note Documents in an aggregate principal amount (the “Note Actual Principal Amount”) in excess of $150,000,000 or such greater amount to which the Agent shall give its prior written consent in its sole discretion (the “Note Permitted Principal Amount”), then the excess of the Note Actual Principal Amount over the Note Permitted Principal Amount (and all interest on (including interest rate protection obligations) and fees in respect of such excess amount) shall not be entitled to the Note Senior Lien.

	
  

	
11.7

	
Note Obligations to Remain Subject to this Agreement.  Any amendment, restatement, modification, supplement, and /or refinancing of the Note Obligations shall be expressly subject to the terms of this Agreement.

	
  

	
11.8

	
No Waiver of Default Under Bank Documents. Nothing herein shall serve to waive any default under the Bank Documents if such amendment, restatement, modification, supplement, and /or refinancing of the Note Obligations is not permitted by the terms thereof.

	
  

	
11.9

	
Insolvency Proceeding Limitation.  The provisions of this Section 11 shall not apply to any financing provided in connection with an Insolvency Proceeding in accordance with Section 9.5.

 

  

18

  

 

	
12.

	
Joinder of Additional Guarantors.

 

	
  

	
12.1

	
Additional Guarantors.  Pursuant to the Bank Documents and the Note Documents, subsidiaries of the Company which are acquired or organized after the date of this Agreement may be required to become guarantors of the Bank Obligations and/or the Note Obligations and provide security in connection therewith.  At any time that such a subsidiary becomes a guarantor of the Bank Obligations and the Note Obligations, it shall join in this Agreement, with the same effect and to the same extent as if such subsidiary had been named herein as a Guarantor.  The Company covenants and agrees that it will cause any such subsidiary which becomes obligated to guarantee the obligations of the Company under the Bank Documents and the Note Documents to execute a joinder agreement satisfactory in form and substance to the Agent and the Trustee.  The execution and delivery of such joinder shall not require the consent of any other party hereunder, and will be acknowledged by the Agent and the Trustee.  The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor as a party to this Agreement.

	
13.

	
Purchase Option.

	
  

	
13.1

	
Purchase Event.  If there is (a) an acceleration of the Bank Obligations in accordance with the Bank Documents, (b) a payment default under the Bank Documents that is not cured, or waived by the Agent or the Lenders, within thirty days of its occurrence, (c) the exercise of any remedy by the Agent or the Lenders with respect to Liens on the Common Collateral, or (d) the commencement of an Insolvency Proceeding, (each a “Purchase Event”), then the Noteholders may, at their sole expense and effort, upon notice from the Trustee at the direction of such Noteholders to the Company and the Agent, irrevocably require the Agent to transfer and assign to the Noteholders, without warranty or representation or recourse (other than the representation or warranty that such Bank Obligations are being transferred without any Lien created by the Agent), all (but not less than all) of the Bank Obligations and all rights of the Agent and the Lenders under the Bank Documents with respect to the Bank Obligations; provided that (x) the Agent shall retain all rights to be indemnified or to be held harmless by the Obligors in accordance with the terms of the Bank Documents, (y) such assignment shall not conflict with any law, rule or regulation or order of any court or other governmental authority having jurisdiction, and (z) the Noteholders shall have paid to the Agent, in immediately available funds, an amount equal to 100% of the principal of such indebtedness plus all accrued and unpaid interest thereon plus all accrued and unpaid fees including any breakage costs and expenses (other than any other fees that become due as a result of the prepayment of the loans and other advances under, or early termination of, the Credit Agreement plus all the other Bank Obligations then outstanding up to but not in excess of the Bank Maximum Amount.  In order to effectuate the foregoing, the Agent shall provide an estimated calculation, upon the written request of the Noteholders submitted through the Trustee from time to time (but in no event more than twice in any calendar month), the amount in cash that would be necessary to so purchase the Bank Obligations.

  

19

  

	
  

	
13.2

	
Purchase Procedure.  If the right set forth in Section 13.1 is exercised: (1) the parties shall endeavor to close promptly thereafter but in any event within ten (10) days of the notice set forth in the first sentence of Section 13.1, (2) such purchase of the Bank Obligations shall be exercised pursuant to documentation mutually acceptable to the Agent and the Noteholders purchasing such claims, and (3) such Bank Obligations shall be purchased pro rata among the Noteholders giving notice to the Trustee of their intent to exercise the purchase option hereunder according to such Noteholders’ portion of the Note Obligations outstanding on the date of purchase pursuant to Section 13.1.  In the event that any one or more of the Noteholders exercises the purchase option set forth in Section 13.1: (A) the Agent shall have the right, but not the obligation, to immediately resign under the Bank Documents upon the closing of such purchase, (B) the purchasing Noteholders shall have the right, but not the obligation, to require the Agent to immediately resign under the Bank Documents upon the closing of such purchase, and (C) the Agent shall take such action with respect to the Common Collateral in an Insolvency Proceeding or Liquidation as may be reasonably requested in good faith and in writing by the Trustee (at the direction and on behalf of the purchasing Noteholders) until the closing of such purchase (but in no event later than ten (10) days after the delivery of notice set forth in the first sentence of Section 13.1); provided, however, if the Agent so requests, it shall first be indemnified to its reasonable satisfaction from the purchasing Noteholders against any and all liability, loss and expense that may be incurred by it by reason of taking or continuing to take, or refraining from taking, any such action.  Any Excess Bank Obligations will, after the closing of the purchase option, remain Excess Bank Obligations for all purposes of this Agreement.

	
14.

	
Miscellaneous.

	
  

	
14.1

	
Rights and Obligations.

	
  

	
(i)

	
It is acknowledged that any interest rate protection agreements that are issued in accordance with the Credit Agreement from time to time may be issued by an affiliate of the Agent, and in such event, that affiliate shall be bound by the obligations and entitled to the benefits of the Agent hereunder with respect to such interest rate protection agreements.

	
  

	
(ii)

	
All of the rights and obligations of the Trustee hereunder are for the benefit of and binding on the Noteholders.

	
  

	
(iii)

	
The terms of this Agreement are intended to set forth the relative rights and obligations of the Trustee and the Agent as between each other and nothing in this Agreement shall confer any rights on any Obligors.  Without limiting the generality of the foregoing, the Obligors shall not be entitled to require any release or subordination of Liens in connection with this Agreement.

  

20

  

	
  

	
14.2

	
Agent and Trustee May Act through Agents.  The Agent and the Trustee may execute any of their respective rights or obligations under this Agreement (including but not limited to, Collateral Enforcement Actions) directly or indirectly by delegating such right to any agent or agents chosen by the Agent or the Trustee, as applicable (each such person, an “Agent”) and neither the Agent, nor the Trustee, shall be responsible for any misconduct on the part of any such Agent, appointed with due care by it hereunder.  Any Agent shall be entitled to reimbursed for costs and expenses in accordance with Section 14.3 hereof, be entitled to indemnification pursuant to Section 14.4 hereof and be entitled to the limitations on liability provided in Section 14.5 hereof.

	
  

	
14.3

	
Costs and Expenses.  Without limiting the generality of any other cost reimbursement provisions that may be provided for in the Bank Documents or the Note Documents, the Company and each of the Guarantors, jointly and severally, agree to pay to the Agent, the Trustee and their respective Agents, from time to time upon demand all of fees, costs and expenses of the Agent, the Trustee and their respective Agents (including, without limitation, the fees and disbursements of counsel and other professionals and consultants as such party elects to retain) arising in connection with the preparation, execution, delivery, modification and termination of this Agreement, any actions of the Agent or the Trustee contemplated by this Agreement or the enforcement of any provisions hereof, the Note Documents and the Bank Documents.  The obligations under this Section 14.3 shall survive the termination of this Agreement.

	
  

	
14.4

	
Indemnification.  Without limiting any indemnification obligations of the Obligors that may be contained in any of the Bank Documents or the Note Documents, the Company and each of the Guarantors, jointly and severally, agree to pay, indemnify, and hold each of the Agent, the Trustee and their respective Agents harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever (collectively, “Liabilities”) with respect to the execution, delivery, and performance of their obligations under this Agreement, any actions contemplated by this Agreement, any failure to act in accordance with the terms of this Agreement or any other Liabilities arising out of this Agreement, or the enforcement of any provisions hereof, the Note Documents and the Bank Documents.  The obligations under this Section 14.4 shall survive the termination of this Agreement.

	
  

	
14.5

	
Limitation of Liabilities.  Each of the Agent, the Trustee and their respective Agents shall not be liable for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith, unless arising as a result of the gross negligence or willful misconduct of such party.  The provisions of this Section 14.5 shall survive the termination of this Agreement.

	
  

	
14.6

	
Notices.  Unless otherwise expressly provided under this Agreement all notices, requests, demands, directions and other communications (collectively “Notices”) given to or made upon any party under the provisions of this Agreement shall be in writing (including facsimile communication) and if in writing shall be delivered by hand, nationally recognized overnight courier or U.S. mail or sent by facsimile, if to the Trustee to the following address: 525 William Penn Place, 38th Floor, Pittsburgh, PA 15259 and if to the other parties hereto, to their respective  addresses and numbers set forth in the Credit Agreement or in accordance with any subsequent unrevoked confirmed written direction from any party to the others.  All Notices shall, except as otherwise expressly provided in this Agreement, be effective (a) in the case of facsimile, when received, (b) in the case of hand-delivered Notice, when hand delivered, (c) if given by U.S. mail, the day after such communication is deposited in the mails with overnight first class postage prepaid, return receipt requested, and (d) if given by any other means (including by air courier), when delivered.

  

21

  

	
  

	
14.7

	
No Implied Obligations.  The Agent and the Trustee shall not be liable except for the performance of any such duties or obligations as are specifically set forth herein, and no implied duties, covenants or obligations shall be read into this Agreement against the Agent or the Trustee.

	
  

	
14.8

	
Waivers.  The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by the Agent and the Trustee.  The Company and the Guarantors shall not have any right to consent to or approve any amendment, modifications or waivers of any provision of this Agreement, except with respect to Sections 4.1(v), 4.3(v), 6.3 and 14.3, 14.4, 14.6 and 14.13 and any definitions set forth in any such section.

	
  

	
14.9

	
Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns, provided, however, that Company and the Guarantors shall not assign or transfer its rights or obligations hereunder without the specific written approval of the Agent and the Trustee.

	
  

	
14.10

	
Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same instrument.  Delivery of a photocopy or telecopy of an executed counterpart of a signature page to this Agreement shall be as effective as delivery of a manually executed counterpart of this Agreement.

	
  

	
14.11

	
Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(b).

	
  

	
14.12

	
Waiver of Jury Trial.  FOR THE PURPOSES OF THIS AGREEMENT, EACH PARTY HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OR OMISSIONS OF ANY PARTY HERETO, OR ANY OTHER PERSON, RELATING TO THIS AGREEMENT.

  

22

  

	
  

	
14.13

	
Waiver of Certain Damages.  Each of the parties hereto waives the right to, and agrees not to assert any claim to, on any theory of liability, consequential, special, indirect, exemplary, punitive or any other damages other than actual direct damages, arising out of or otherwise relating to the transactions contemplated hereby.

	
  

	
14.14

	
No Third-Party Beneficiaries.  All undertakings, agreements, representations and warranties contained in this Agreement are solely for the benefit of the Agent, the Trustee, the Noteholders, and their respective Agents, successors and permitted assigns.  There are no other parties who are intended to be benefited in any way by this Agreement and, without limiting the provisions of Section 14.13 nothing herein shall give the Company or the Guarantors or any third party any benefit or any legal or equitable right or remedy under this Agreement.  Without limiting the generally of the foregoing, the existence of this Agreement shall not (a) commit or obligate the Agent or the Trustee to make loans or extend credit to any of the Company or the Guarantors or (b) limit or effect any of rights or available remedies of the Agent or the Trustee pursuant to any other agreement with the Company or the Guarantors.

	
  

	
14.15

	
Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof in such jurisdiction, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

	
  

	
14.16

	
Headings.  Section headings used herein are for convenience only and are not to affect the construction of or be taken into consideration in interpreting this Agreement.

	
  

	
14.17

	
Incorporation by Reference.  In connection with its execution and acting hereunder the Trustee is entitled to all rights, privileges, protections, immunities, benefits and indemnities provided to it under the Indenture.

[next page is start of signature pages]

  

23

  

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written.

	
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

	  	
BANK OF AMERICA, N.A.,

	
as Trustee

	  	
as Agent

	  	  	  	  	  	  	  
	
By:

	
/s/ James M. Young

	  	
By:

	
/s/ Christian D. Barrow

	  	
Name:

	
James M. Young

	  	  	
Name:

	
Christian D. Barrow

	  	
Title:

	
Senior Associate

	  	  	
Title:

	
Senior Vice President

	  	  	  	  	  	  	  
	
THE SHERIDAN GROUP, INC.

	  	
DARTMOUTH JOURNAL SERVICES, INC.

	  	  	  	  	  	  	  
	
By:

	
/s/ Robert M. Jakobe

	  	
By:

	
/s/ Robert M. Jakobe

	  	
Name:

	
Robert M. Jakobe

	  	  	
Name:

	
Robert M. Jakobe

	  	
Title:

	
Executive Vice President and Chief Financial Officer

	  	  	
Title:

	
Secretary

	  	  	  	  	  	  	  
	
DARTMOUTH PRINTING COMPANY

	  	
SHERIDAN BOOKS, INC.

	  	  	  	  	  	  	  
	
By:

	
/s/ Robert M. Jakobe

	  	By:	
/s/ Robert M. Jakobe

	  	
Name:

	
Robert M. Jakobe

	  	  	
Name:

	
Robert M. Jakobe

	  	
Title:

	
Secretary

	  	  	
Title:

	
Secretary

	  	  	  	  	  	  	  
	
THE DINGLEY PRESS, INC.

	  	
THE SHERIDAN GROUP HOLDING COMPANY

	  	  	  	  	  	  	  
	
By:

	
/s/ Robert M. Jakobe

	  	
By:

	
/s/ Robert M. Jakobe

	  	
Name:

	
Robert M. Jakobe

	  	  	
Name:

	
Robert M. Jakobe

	  	
Title:

	
Secretary

	  	  	
Title:

	
President

	  	  	  	  	  	  	  
	
THE SHERIDAN PRESS, INC.

	  	
UNITED LITHO, INC.

	  	  	  	  	  	  	  
	
By:

	
/s/ Robert M. Jakobe

	  	
By:

	
/s/ Robert M. Jakobe

	  	
Name:

	
Robert M. Jakobe

	  	  	
Name:

	
Robert M. Jakobe

	  	
Title:

	
Secretary

	  	  	
Title:

	
Secretary

 

INTERCREDITOR AGREEMENT SIGNATURE PAGEUnassociated Document

EXHIBIT 10.66

 

	
 

PUBLISHER: Dot VN, Inc.

	
 

PUBLISHER TAX ID: [CONFIDENTIAL TREATMENT 

REQUESTED]

	
 

Start Date: The latter date of either Yahoo! Sarl or Publisher’s signature.

	
 

End Date: 36 months from the Start Date

	
 

This Agreement will automatically renew for additional 2 year periods unless either party gives notice of non- renewal at least 90 days before the expiration of the then current term.

 

	
 

Deployment of Services on Publisher’s Offerings:

 

Link = Search Box; Results = Paid Search Results, Web Search Results; Publisher’s Offering = the following Publisher websites (“Sites”): www.DotVN.com

 

 www.Dot.vn

 

www.vnwww.Info.vn en.www.info.vn

 

Vietnam’s native language internationalized domain names (“Vietnamese IDNs”) 

 

All domain names ending in .vn managed or registered by Dot VN, Inc. Syndicated Sites.

 

Link = Ad Code; Results = Matched Ads; Publisher’s Offering = the Sites.

 

	
 

Implementation:

 

1.     As shown in Attachment A and as described in this SO and the other Attachments to the Agreement

2.     Minimum Above the Fold : Matched Ads - [2]; Paid Search Results - [2]

3.     Branding: Publisher will display the Marks as shown in Attachment A on the Publisher’s Offerings. Publisher will abide by the license terms in 

        the Trademark License Attachment.

4.     Publisher will launch services within 10 business days of receiving the production feed from Yahoo!.

 

Compensation: Yahoo! will pay Publisher [CONFIDENTIAL TREATMENT REQUESTED]% of Gross Revenue. Adjustment: [CONFIDENTIAL TREATMENT REQUESTED]% of Gross Revenue.

	
 

Non-Disclosure Agreement (“NDA”) effective date: 15th March 2011

	
Notices will be delivered in accordance with Section 22 of the Terms and Conditions to: PUBLISHERYAHOO! SARL

	
Dot VN, Inc.

9449Balboa Avenue, Suite 114

San Diego, CA 92123

Fax: 858-571-8497     Attn: Louis Huynh

	
ZA la Pièce No 4, Route de l’Etraz, 1180 Rolle, Switzerland

 

 

Fax: 44 20 7131 1775                                         Attn: Legal

	  	
YAHOO! INC.

 

3333 W. Empire Avenue, Burbank, CA 91504

 

Fax: 818-524-3001                                         Attn: General Counsel

 

  

  

  

 

Publisher and Yahoo! have caused their duly authorized representatives to execute this Agreement. Signed:

                                                                      

	Dot VN, Inc.   	 	 	YAHOO! SARL	 

 

	By:	/s/ Lee Johnson 	 	By:  	 	 

 

	Name:	Lee Johnson 	 	Name: 	 	 

 

	 
Title: 

	President    	 	 
Title: 

	 	 

 

	 
Date: 

	    4 / 8 / 11    	 	 
Date: 

	 	 

                                                                      

	 	 	 	 
YAHOO! INC.

	 

 

	 	 	 	By:  	 	 

 

	 	 	 	Name: 	 	 

 

	 
 

	 	 	 
Title: 

	 	 

 

	 
 

	 	 	 
Date: 

	  4 / 20 / 11     	 

 

  

  

  

                                                         

ATTACHMENT A - IMPLEMENTATION REQUIREMENTS

 

The following requirements apply to all Links and Results shown in the SO.  Any provisions concerning Links and Results not explicitly listed in the SO do not apply to Publisher.  The use of the term “Yahoo!” throughout this Agreement shall refer to Yahoo! Sarl.

 

 

	 
1.

	 
Requirements for all Links, Queries and Results

	.	Publisher will not truncate the full titles,
	 	 	 	 
	
.

 

 

 

 

 

 

	 
Publisher will implement all Links and Results as shown in the mockups including, but not limited to, margins, text size, color, font, shading/background, spacing, blank areas, content categories, number of listings, section and placement on the page (top to bottom and left to right).  However, both Yahoo! and Publisher agree that the mockups may be subject to revision, redesign and/or upgrade from time to time provided both parties agree to such revision, redesign and/or upgrade in writing.

	 	 
	 	 	 	 
	.	 
Publisher will display the labels and headings shown in the mockups (or any labels, headings or notices provided by Yahoo! or required by law), with a nearby prominent link to a webpage that explains in language approved by Yahoo! that certain Results are sponsored advertising and that informs users how they may become Advertisers.  Yahoo!

	 	 
	 	 	 	 
	. 	 
reserves the right to include links within the Results to further clarify the sponsored nature of the Results.

	 	 
	 	 	 	 
	. 	 
Publisher will display all Results on the next webpage displayed to a user after a Query, with no interstitial content, at the same time as it displays the other content on that webpage.  Publisher will not cache Results.  If Publisher submits a Query for a Publisher’s Offering to Yahoo!, then Publisher shall display all Results served by Yahoo! in response to such Query.

	 	 
	 	 	 	 
	. 	 
Publisher will display Results contiguously, in the order provided by Yahoo!, without any other content between the individual Results.

	 	 
	 	 	 	 
	. 	 
Publisher will not (a) redirect a user away from the Advertiser Landing Page after the user clicks on a Result, (b) provide a version of the Advertiser Landing Page different from the page the user would access by going directly to the Advertiser Landing Page, (c) intersperse any content between Results and any Advertiser Landing Page, or (d) minimize, remove or otherwise inhibit the full and complete display of any Advertiser Landing Page.

	 	 

 

  

  

  

 

	 	 
descriptions and/or URLs provided by Yahoo! and will not modify any part of the Results.  Publisher will display Results in the language provided by Yahoo!.

	 	 
	 	 	 	 
	.  	 
Publisher will include the Links on each Publisher’s Offering as described in the Agreement.  Publisher will not request Results by any means except the Links and will not place Links on any website, software application or email except for the Publisher’s Offerings.  Publisher will use commercially reasonable efforts to enable all of its users to access and use the Links and Results and, except as prohibited under Section 18 (Abuse of Services) of the Terms and Conditions, to deliver all Queries to Yahoo! every time a user enters a search into the Search Box, uses a Hyperlink, or navigates to an Ad Page.

	 	 
	 	 	 	 
	.  	 
Starting from the beginning of the second calendar year after the Start Date, Publisher will not exceed Max Queries.  If Publisher exceeds Max Queries, Yahoo! may suspend or throttle services until Yahoo! believes the number of Queries will not exceed Max Queries. Yahoo! reserves the right to change the measurement period used for Max Queries in the event it reasonably determines that doing so will allow Yahoo! to better manage network capacity.

	 	 
	 	 	 	 
	.  	 
Publisher will implement any reasonable technical requirements requested by Yahoo!.

	 	 
	 	 	 	 
	.  	 
Yahoo! reserves the right (a) to require Publisher to stop using any keyword for any reason or no reason; and/or (b) for certain keywords, in Yahoo!’s sole discretion, to deliver no Results and provide a response that no Results are being delivered.

	 	 
	 	 	 	 
	.  	 
Publisher will conspicuously post a privacy policy that complies with all applicable laws, rules and regulations on each Publisher’s Offering.

	 	 
	 	 	 	 
	 
2.

	 
Additional Requirements for Matched Ads and/or Hyperlinks

	 	 
	 	 	 	 
	 
1.

	 
The parties will agree in writing on the pages within Publisher’s Offerings that will display Matched Ads and/or Hyperlinks (“Ad Pages”), using keywords determined by Yahoo!. Publisher will display Matched Ads and/or

	 	 

 

  

  

  

 

	 	Hyperlinks to all users who navigate to the Ad Pages.  Publisher will allow the Hyperlinks to send Yahoo! a Query each time that a user uses a Hyperlink.  Yahoo! reserves the right to require Publisher to remove Matched Ads and/or Hyperlinks from any webpage.	 
4.

	 
In order for Yahoo! to provide dynamic mapping of Matched Ads, Publisher acknowledges that Yahoo! will crawl the content within Publisher’s Offerings and will store and use limited information from Publisher’s Offerings, solely to the extent needed for the necessary matching technology to function.

	 	 	 	 
	 
2.

	 
Publisher will display Matched Ads and/or Hyperlinks at the same time as it displays the other content on the Ad Page.

	 
3.

	 
Additional Requirements for Paid Search and/or Web Search

	 	 	 	 
	 
3.

	 
Once a user arrives at an Ad Page, Publisher will not send Yahoo! additional Queries for Matched Ads until the user navigates to a new Ad Page or refreshes the Ad Page.

	 
A.

	 
Publisher will implement the Search Box on all pages within Publisher’s Offerings.

 

	MOCKUPS

 

Link = Search Box; Results = Paid Search Results, Web Search Results

 

[1st Graphic of the web site www.info.vn showing placement of the above identified Yahoo! ads]

 

  

  

  

 

Link = Ad Code; Results = Matched Ads

 

[2nd Graphic of the web site www.info.vn showing placement of the above identified Yahoo! ads]

 

 

  

  

  

ATTACHMENT B — TERMS AND CONDITIONS

 

	 
The parties agree to the following:

 

 
The parties’ agreement consists of the Service Order, all Attachments, Schedules, Exhibits (as applicable) and the NDA (“Agreement”).

 

 
(a)           License.  During the Term and subject to Publisher’s compliance with this Agreement, Yahoo! grants to Publisher  a limited, non- exclusive, non-assignable, non-transferable, non- sublicensable (unless explicitly provided for under this Agreement), royalty-free license to use and display the Links and the Results on Publisher’s Offerings, solely for purposes contemplated in this Agreement.  The above license includes the limited right to use and reproduce the software code and/or URLs that allow Publisher to create Links and receive Results.

 
 

(b)           Services.  Yahoo! will use commercially reasonable efforts to respond to Queries by delivering Results or a response that no Results are being delivered.  Yahoo! will determine the number of Results provided for each Query.

 

 
(c)           Publisher’s Offerings.  Publisher represents and warrants that the listed Publisher’s Offerings are all of Publisher’s websites, emails, software applications and domains that include services similar to those covered by this Agreement, as of the Start Date.  This Agreement applies to the top-level domains of any websites (including successor sites) that are included as Publisher’s Offerings and all webpages within those websites.

 

 
(d)           Future Offerings.  Publisher will promptly notify Yahoo! of any additional websites or domains owned or operated by Publisher, any software applications owned or licensed by Publisher for distribution to end-users, and any email campaigns Publisher engages in that include (or that Publisher anticipates will include) search functionality or paid listings.  If Yahoo! accepts the additional websites, applications and/or email campaigns, the parties will amend the Agreement to include such additional offerings.

 

 
(e)           Compensation.  “Adjusted Gross Revenue” means Gross Revenue minus the Adjustment.  “Gross Revenue” means the amount earned from Advertisers solely from the Paid Results shown on Publisher’s Offerings in each of the Territories.  Gross Revenue is calculated and payment is made to Publisher net of any taxes that are required to be collected, withheld or paid with respect to such earned amount (except taxes on net income) and net of credit card or other payment processing fees, bad debt and charge-

	 	 
backs, commissions or discounts allowed or paid to advertising agencies, and refunds to Advertisers.

 

 
(f)           Payment.  Yahoo! or a Yahoo! Related Party will pay Publisher within 45 days after the end of the calendar month in which the relevant Results appeared on Publisher’s Offerings.  Payment will be made in US dollars.  If Advertisers pay in any other currency, Yahoo! will calculate payment using the average exchange rate as published by a nationally recognized source (e.g., Oanda).  If the Territory includes countries other than the United States, Publisher acknowledges that payment will only be made after Publisher fulfills Yahoo!’s invoicing requirements.  Yahoo! may offset payments by any amounts Publisher owes to Yahoo!, including previous overpayments.  In the event that Yahoo! refundsamounts to Advertisers in excess of its payment to Publisher, Publisher will pay Yahoo! for such amounts within 30 days of Yahoo!’s request.  Yahoo! may make payments only when Publisher’s balance exceeds US $250.00 (or until termination or expiration of this Agreement).  Except as specifically set forth in this Section 6, Yahoo! will retain all revenues derived from or in connection with its services. 

 

 
(g)          Reports.  Publisher will receive a monthly report detailing the amount of the payment and will have access to  preliminary data on the performance of the Results on Publisher’s Offerings.

 

 
(h)          Exclusivity.  On all Publisher’s Offerings, Publisher will ensure that Yahoo! is the exclusive provider of (a) any services that are similar to the services provided under this Agreement, (b) all Algorithmic Listings, and (c) all search functionality.  In addition, on all Publisher’s Offerings, Publisher will not display or link to, or permit any third party to display or link to, any paid products or services from any Named Company other than those products or services that Yahoo! is providing to Publisher pursuant to this Agreement.  Notwithstanding the foregoing, an Affiliate (as defined in the Syndication Attachment) shall be entitled to use its own direct sales operations to provide search results on any of its owned or operated Syndicated Sites, provided that (i) Publisher and such Affiliate shall abide by all implementation requirements set forth in the SO and Attachment A of this Agreement, including minimum number and placements of Paid Results, and (ii) Publisher will ensure that any Paid Search Result is displayed in the most prominent position on any webpage as compared to the display of any

 

 

  

  

  

 

YAHOO! PUBLISHER NETWORK CONTRACT # [1-300568711

 

	 
results substantially similar to Paid Results provided by an Affiliate’s direct sales operations.  Publisher agrees that any violation or threatened violation of this Section 8 will cause Yahoo! irreparable harm for which there is no adequate remedy at law.  Publisher waives any requirement for a bond in connection with any claim for injunctive relief.

 

 
(i)           Ownership.  As between Yahoo! and Publisher, all right, title and interest in the Links, Results and Marks are exclusively owned by Yahoo!, its licensors and/or its Advertisers, and all right, title and interest in Publisher’s Offerings, the Publisher Content and the Publisher trademarks are exclusively owned by Publisher and/or its licensors.

 

 
(j)           No Implied Licenses.  Each party reserves any rights not expressly granted and disclaims all implied licenses, including implied licenses to trademarks and patents.

 

(k)           Responsibility for Publisher’s Offerings. Publisher is solely responsible for Publisher’s Offerings and the Publisher Content.  Publisher will provide at least 10 business days’ prior notification to Yahoo! of any material change in the content, design or architecture of Publisher’s Offerings that would change the target audience or affect the implementation or display of the Links or the Results.  If Publisher makes a material change as reasonably determined by Yahoo!, or if Yahoo! receives one or more complaints about Publisher or any Publisher’s Offering (including complaints about the traffic sent to Advertisers from or through (a) any Publisher’s Offering or (b) any feed provided to Publisher by Yahoo!), then Yahoo! may terminate this Agreement in whole or as to the specific Publisher’s Offering that was the subject of the change or complaint, subject to the notice, cure and suspension provisions in Section 19 below. However, such termination may be made immediately upon notice, without opportunity to cure, if any of the following factors relating to Publisher or any Publisher’s Offering is present: a threatened or initiated third party claim or proceeding against Publisher, Yahoo! or a Yahoo! Related Party; a governmental action or investigation; adverse publicity or media attention; or Yahoo!’s reasonable belief that Yahoo!, a Yahoo! Related Party or any Advertiser may incur liability.  In addition, termination under this Section 11 may be made without opportunity to cure if notice of termination under this Section 11 has been provided to Publisher twice before.

 

(l)           Information and Cooperation.  For each Query and each click on a Paid Result, Publisher will provide: (a) the user agent; (b) the full,

	 	unencrypted Internet Protocol address of the user; (c) the serveURL; (d) any anonymous user identification ascribed by Publisher, unique cookie or URL tag; and (e) any other data that Yahoo! requests in writing that is used in connection with the ad serving and quality systems.  Publisher will provide this information at the time a Query is sent to Yahoo! and when a user clicks on a Paid Result.  For clarity, Yahoo! will not request and Publisher will not share any personally identifiable information with Yahoo!.  Additionally, Publisher will register all URLs and other source feed indicators in a manner designated from time to time by Yahoo!.  The source feed indicators passed to Yahoo! with a Query shall match the registered source feed indicator associated with the URL from where the Query originated.  Yahoo! shall determine, in its sole discretion, the number of source tags that Publisher may use on each Publisher’s Offering.  The parties will cooperate in a commercially reasonable manner to minimize automated, fraudulent or lower quality traffic.  Yahoo! will have no obligation to make payments in instances when Publisher has failed to utilize designated source feed indicators in a manner approved by Yahoo!.  The ad serving and quality systems used by Yahoo! in connection with this Agreement shall determine the validity and quality of all traffic, as well as any discounting of traffic. 
 

 
(m)           Confidentiality.  For the duration of the Term, the parties’ confidentiality obligations will be governed by the terms of the NDA, which is incorporated into this Agreement by reference.

 

(n)           Yahoo! Indemnification.  Yahoo! will indemnify, defend and/or settle, and pay damages awarded pursuant to, any third party claim brought against Publisher, which alleges that Yahoo!’s Paid Results infringe any valid trademark or copyright in the countries included in the Territory; provided that Publisher promptly notifies Yahoo! in writing of any such claim, promptly tenders the control of the defense and settlement of any such claim to Yahoo! (at Yahoo!’s expense and with Yahoo!’s choice of counsel), and cooperates fully with Yahoo! (at Yahoo!’s request and expense) in defending or settling such claim, including but not limited to, providing any information or materials necessary for Yahoo! to perform the foregoing. Notwithstanding the foregoing sentence, failure of Publisher to give Yahoo! notice of a claim will not affect Yahoo!’s indemnification obligations except to the extent that Yahoo! is materially and adversely prejudiced by such failure.  Yahoo! will not enter into any settlement or compromise of any such claim, which settlement or compromise would result in any liability to Publisher, without Publisher’s prior consent, which will not be

 

 

Yahoo! Confidential

  

7

  

 

YAHOO! PUBLISHER NETWORK CONTRACT # [1-300568711

 

	 
unreasonably withheld.

 

 
(o)        Publisher Indemnification.  Publisher will indemnify, defend and/or settle, and pay damages awarded pursuant to, any third party claim brought against Yahoo!, which (a) alleges that Publisher’s Offerings infringe any valid trademark or copyright in the countries included in the Territory or (b) arises out of Publisher’s modification of the Links, Marks or Results in any way or the use of the Links, Marks or Results in violation of the Agreement; provided that Yahoo! promptly notifies Publisher in writing of any such claim, promptly tenders the control of the defense and settlement of any such claim to Publisher (at Publisher’s expense and with Publisher’s choice of counsel), and cooperates fully with Publisher (at Publisher’s request and expense) in defending or settling such claim, including but not limited to, providing any information or materials necessary for Publisher to perform the foregoing.  Notwithstanding the foregoing sentence, failure of Yahoo! to give Publisher notice of a claim will not affect Publisher’s indemnification obligations except to the extent that Publisher is materially and adversely prejudiced by such failure.  Publisher will not enter into any settlement or compromise of any such claim without Yahoo!’s prior consent, which will not be unreasonably withheld.

 

(p)          DISCLAIMER OF WARRANTIES.  TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, (A) YAHOO!  AND ITS LICENSORS ARE NOT RESPONSIBLE FOR ANY CONTENT PROVIDED HEREUNDER OR FOR ANY WEBSITES THAT CAN BE LINKED TO OR FROM THE RESULTS, (B) PUBLISHER ACKNOWLEDGES THAT THE PAID MARKETPLACES ARE CONTINUOUSLY CHANGING AND THAT YAHOO! RESERVES THE RIGHT TO UPDATE SUCH MARKETPLACES, PRODUCTS AND SERVICES, AND (C) YAHOO! AND ITS LICENSORS MAKE NO WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WITHOUT LIMITATION WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, AND NONINFRINGEMENT.

 

(q)           LIMITATION OF LIABILITY.  TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER PARTY WILL BE LIABLE FOR ANY LOST PROFITS, COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR FOR ANY OTHER INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, HOWEVER CAUSED, AND UNDER WHATEVER

	 	 
CLAIM OR THEORY OF LIABILITY BROUGHT (INCLUDING, WITHOUT LIMITATION, UNDER ANY CONTRACT, NEGLIGENCE OR OTHER TORT THEORY OF LIABILITY) EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE  LAW, EACH PARTY’S AGGREGATE LIABILITY FOR DIRECT DAMAGES AND PAYMENT OF ANY INDEMNITY OBLIGATION UNDER THIS AGREEMENT (CUMULATIVELY) SHALL BE LIMITED TO THE GREATER OF (a) AMOUNTS PAID TO PUBLISHER DURING THE 12 MONTHS PRIOR TO THE TIME THAT THE CLAIM AROSE; OR (b) [CONFIDENTIAL TREATMENT REQUESTED] US.

 

NOTWITHSTANDING THE FOREGOING, THE ABOVE EXCLUSIONS AND LIMITATIONS OF LIABILITY WILL NOT APPLY TO: (i) A PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS; and (ii) AN INTENTIONAL BREACH BY PUBLISHER OF ITS EXCLUSIVITY OBLIGATIONS.

 

(r)           Abuse of Services.  Unless specifically allowed in this Agreement, none of the following will occur on or in connection with Publisher’s Offerings:

 

1.       Queries or clicks generated by any automated or fraudulent means;

 

2.       Queries or clicks on Results generated by misleading, manipulative, deceptive or incented means, including but not limited to: (i) blind links (where users do not know that they will be performing a Query or clicking on a Result); (ii) requiring a user to search or click to receive some other benefit, obtain some other result or perform another function (such as leaving a webpage or closing a window); (iii) pre-populating the Search Box; (iv) Publisher, its employees, contractors or agents clicking on the Results except in the course of normal individual use; or (v) offering a user any inducement of any kind to search or click on the Results;

 

3.       Unauthorized implementations, including: (i) use, display, syndication, sublicensing or delivery of the Links, Results or Marks anywhere other than on Publisher’s Offerings or in a manner that has not been approved by Yahoo! in writing; (ii) Links placed on or Queries from or after 404 or other error messages; (iii) Queries from, or displays of Results or Links within pop-over or pop-under windows, in or through a downloadable application, or in or through an email; or (iv) using a software application that is downloaded to users’ computers to drive traffic to any website on which Links or

 

Yahoo! Confidential

  

8

  

 

YAHOO! PUBLISHER NETWORK CONTRACT # [1-300568711

 

	 
Results appear unless the application has been approved by Yahoo! in a written amendment to the Agreement signed by the parties;

 

4.       Sending Queries from users located within countries identified on the Office of Foreign Assets Control’s list of sanctioned countries, or masking the true user agent, referring URL, serveURL or IP address of a user; For clarity,

 

5.       when passing the serveURL to Yahoo!, Publisher must specify the full URL up to the Query argument list (which includes Internet protocol address, the host name, path (if any), and the webpage name).  The full URL up to the Query argument list and the corresponding webpage on which the Results appear must match the webpage that appears in the Advertiser referral logs and the user’s address bar;Adding, deleting or changing terms or characters of a Query by anyone other than the user;

 

6.       Display of anything (such as pop-up windows, expanding banners or buttons or any animation) that may obscure any portion of the Links or the Results or stripping, blocking, or filtering Results by any means or in any way preventing or inhibiting the display of Results in whole or in part;

 

7.       Sending Queries to, or otherwise accessing, market-specific search databases or product- specific paid marketplace databases except as approved by Yahoo!;

 

8.       Purchasing traffic with the intent of directing users to webpages where Paid Results are the most prominent page element;

 

9.       Installing any program on a user’s computer or replacing a user’s home page, without the user’s express and informed prior consent;

 

10       Redirecting users from one Publisher’s Offering to another Publisher’s Offering; or

 

11.       Overriding Yahoo!’s determination of the appropriate country or regional market from which to return Results.

 

Any search, impression, click or conversion generated in violation of this Section 18 shall not be counted for purposes of calculating any compensation owed to Publisher.

 

If any of the provisions of Section 18 above is violated, Yahoo! may immediately suspend services.  If Publisher fails to cure or prevent the noticed activity within 48 hours after Yahoo! informs Publisher of the violation or if Publisher fails to provide reasonable assurances that there will be no further violations, Yahoo! may terminate this Agreement immediately upon notice without liability to Publisher except for any compensation

	 	
due to Publisher through the date of termination.  If the same provision of this Section 18 is violated more than once or two or more different provisions of this Section 18 are violated at any time during the Term, Yahoo! may terminate this Agreement immediately upon notice without providing opportunity to cure.

 

(s)           Breach/Bankruptcy.  Except where this Agreement provides otherwise, either party may terminate this Agreement if the other party fails to cure any material breach of this Agreement within10 days of notice thereof.  When Yahoo! is the non-breaching party, Yahoo! may suspend services, in whole or in part (including but not limited to, on a Territory, a Publisher’s Offering and/or an individual tag basis), to Publisher during the cure period if Yahoo! believes the suspension will prevent harm to Yahoo! or the Yahoo! network.  In addition, either party may suspend performance and/or terminate this Agreement if the other party makes any assignment for the benefit of creditors or files or has filed against it any petition under bankruptcy law.

 

(t)           Change of Control or Transfer of Assets.

 

(a)           Yahoo! may terminate this Agreement immediately without liability upon the existence of a Change of Control by Publisher.  Publisher agrees to notify Yahoo! of a Change of Control by Publisher within 10 business days of such Change of Control.  “Change of Control” means (i) a merger, consolidation or other reorganization to which Publisher is a party, if the individuals and entities who were stockholders (or partners or members or others that hold an ownership interest) of Publisher immediately prior to the effective date of the transaction have “beneficial ownership” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of less than eighty percent (80%) of the total combined voting power for election of directors (or their equivalent) of the surviving entity following the effective date of the transaction, (ii) acquisition by any entity or group of direct or indirect beneficial ownership in the aggregate of then issued and outstanding securities (or other ownership interests) of Publisher in a single transaction or a series of transactions representing in the aggregate twenty percent (20%) or more of the total combined voting power of Publisher, or (iii) a sale of all or substantially all of Publisher’s assets.

 

(b)           Publisher will not assign or transfer any Publisher’s Offering to any entity wholly or partially owned by, controlled by or under common ownership or control with Publisher without requiring that entity to enter into one of the

 

Yahoo! Confidential

  

9

  

 

YAHOO! PUBLISHER NETWORK CONTRACT # [1-300568711

 

	 
following, at Yahoo!’s request: (i) an amendment to this Agreement adding that entity as a party, or (ii) a separate agreement containing terms substantially similar to this Agreement.

 

 
(u)             Traffic Quality Shortfall.  If the traffic quality score for any Publisher’s Offering for any calendar month is less than [CONFIDENTIAL TREATMENT REQUESTED]% on the Traffic Quality Scale (where, for example, a [CONFIDENTIAL TREATMENT REQUESTED] on a scale of 1-10 is [CONFIDENTIAL TREATMENT REQUESTED]%), Yahoo! may notify Publisher of such traffic quality score.  Upon receiving such notice, Publisher will have 30 days to bring its traffic quality score above [CONFIDENTIAL TREATMENT REQUESTED]% on the Traffic Quality Scale.  If Publisher fails to bring its traffic quality score above [CONFIDENTIAL TREATMENT REQUESTED]% within the 30 day period or if Publisher’s traffic quality score slips below [CONFIDENTIAL TREATMENT REQUESTED]% again during the Term, Yahoo! may terminate this Agreement, in whole or in part (including but not limited to, on a Territory, a Publisher’s Offering and/or an individual tag basis), immediately upon notice.  Publisher acknowledges and agrees that Yahoo! may modify the method used to measure Publisher’s traffic quality from time to time in Yahoo!’s sole discretion; provided that, such method is applied consistently to all Yahoo! search marketing publishers.

 

 
(v)             Notice.  Notice will become effective when delivered: (a) by courier to the address in the SO (established by written verification of personal, certified or registered delivery by courier or postal service); or (b) by fax to the fax number in the SO (established by a transmission report and followed by a copy sent by courier or certified or registered mail).  All notices to Yahoo! Sarl must include a copy to: (a) 60 Anson Road, #13-01 Mapletree Anson, Singapore 079914; and (b) Fax: +65 6809 8001, Attn: General Counsel; and (b) 4th Floor, 125 Shaftesbury Avenue, London, WC2H 8AD, Fax: 44 (0) 207 131-1775, Attn: Legal.  The parties will notify each other of updated addresses and/or fax numbers.  If (and only if) a party has failed to furnish an accurate fax number, the other party may notify that party by electronic mail to that party’s primary contact (followed by a copy sent by courier or certified or registered mail).  Such email notice will become effective when sent, provided that the sender does not receive a response that the message could not be delivered or an out of office reply.

 

(w)             PR.  No party will issue a press release or other written public statement regarding this Agreement without the other party’s written approval, except that Yahoo! and any Yahoo! Related Party may communicate the general nature of this Agreement to Advertisers and may list Publisher as a Yahoo! publisher.  No cure period shall apply to a breach of this Section 23.

	 	 
(x)           Assignment.  Yahoo! may assign, delegate, or otherwise transfer this Agreement, or the rights or obligations hereunder, in whole or in part, to any Yahoo! Related Party(ies).  This includes, without limitation, the obligation to make and/or the right to receive any payments under this Agreement.  Publisher may not assign any rights or duties under this Agreement without Yahoo!’s prior written consent.  Any assignment without Yahoo!’s prior written consent will be void.

 

(y)           Agreement.  Executed counterparts will each be deemed originals.  The parties can rely on fax copies of the signed Agreement as if they are originals.  Only a written instrument executed by the party expressly waiving compliance may waive any terms of this Agreement.  In the event Publisher does not include a date in its signature block in the SO, the Start Date of this Agreement will be the date included in Yahoo! Sarl’s signature block.  In the event of any discrepancy regarding the date included in Publisher’s signature block, the earlier date will control.  Each party represents and warrants that no statements or representations made by the other party, except as specifically recited in this  Agreement, have influenced, induced or caused the party to execute this Agreement, or were relied upon in entering into this Agreement.  This Agreement represents the entire agreement and understanding between the parties concerning the subject matter of the Agreement.  This Agreement is fully integrated and supersedes all prior negotiations and proposed agreements or understandings, if any, between the parties concerning the subject matter of this Agreement.  This Agreement is the product of negotiation and compromise and all prior discussions, negotiations and agreements are merged herein.  The parties acknowledge and agree that they have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice or that they have voluntarily declined to seek such counsel.  Any amendments or modifications to this Agreement must be in writing and signed by an officer of each party.  If any part of this Agreement is invalid, the remainder shall remain in force and the invalid portion will be replaced with a valid provision coming closest to the parties’ intent and having like economic effect.  Each party will use commercially reasonable efforts to give the other party 20 days’ written notice of its intent to file this Agreement with the SEC or other regulatory agency and to consult with the other party for the purpose of incorporating reasonable proposed redactions.

 

(z)           Law and Venue.  This Agreement is governed by, and will be construed according to the laws of Singapore.  Except for the right of either

 

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party to apply to a court of competent jurisdiction for a temporary restraining order, a preliminary injunction or other equitable relief to preserve the status quo or prevent irreparable harm, all disputes, controversies or claims arising out of or relating to this Agreement, or the breach thereof, shall be settled by resorting to the dispute resolution provisions set forth in this Section.  Any dispute, controversy or claim arising out of or relating to this Agreement shall first be attempted to be resolved through friendly consultations.  If such dispute is not resolved through consultations within thirty (30) days after one party has delivered a written notice to the other party requesting the commencement of consultations, then either party may elect that any misunderstandings or disputes arising from this Agreement shall be decided by arbitration which shall be conducted, upon request by either party, in Singapore, before one (1) arbitrator designated by the Singapore International Arbitration Centre (the “SIAC”), in accordance with the procedures of the SIAC Rules of Arbitration. Any award by the arbitrator shall be in writing and shall specify the factual and legal basis for the award and shall be signed by the arbitrator.  The parties further agree that the arbitrator will decide which party must bear the expenses of the arbitration proceedings.  Such proceedings shall be conducted in the English language.

 

(aa)           Insurance.  Publisher will obtain and keep in effect at all times while this Agreement is in effect and for [three (3) years] thereafter, at Publisher’s expense, insurance coverage as follows (i) comprehensive general liability insurance, on an occurrence policy form, with policy limits equal to or greater than US $[CONFIDENTIAL TREATMENT REQUESTED] per occurrence (combined single limit) and US $[CONFIDENTIAL TREATMENT REQUESTED] in the aggregate, covering operations by or on behalf of Publisher, including coverage for: (a) premises and operations, (b) products and completed operations, (c) broad-form contractual liability, (d) broad-form property damage (including completed operations), and (e) personal injury liability/advertising injury.  Yahoo! shall be named as an additional insured under Publisher’s policies for comprehensive general liability insurance.  Publisher or its insurance carrier(s) will provide Yahoo! with thirty (30) days written notice prior to cancellation or intent not to renew any insurance coverage(s) required to be maintained by the Agreement.  A Certificate of Insurance evidencing the required coverage and limits of liability must be furnished to Yahoo! no later than 10 days after the Start Date, and at such other times as requested by Yahoo!.  Yahoo! may provide specific requirements for the form of policy and may reject in its sole discretion any form of

 

 

 

	 	
policy which it deems unsuitable.  All insurance policies will be written by financially viable companies rated by A. M. Best as A-VII or better and duly licensed and authorized to do business in the state, province or territory in which Publisher is located.  Policy deductibles shall not be more than US $[CONFIDENTIAL TREATMENT REQUESTED], and Publisher will notify Yahoo! of the amount of any applicable deductibles.  Compliance with this Section in no way limits Publisher’s indemnity obligations, except to the extent that Publisher’s insurance company actually pays Yahoo! amounts which Publisher would otherwise pay to Yahoo!.  Publisher agrees to indemnify and hold Yahoo! harmless for covered losses and/or occurrences that fall within any applicable deductible.

 

(bb)           Expiration/Termination.  When this Agreement expires or is terminated: (a) all rights and licenses will terminate immediately and Publisher will immediately cease using the Links, Results and Marks; (b) Sections 9, 12-17, 22, 23, 25-28 and 30 of these Terms and Conditions will survive; and (c) Publisher will promptly refund to Yahoo! any unearned portion of any payment

 

(cc)           Misc.  In the event of a conflict between the terms of the SO and Attachments A and B, the terms of the SO and Attachment A will govern.  Further, in the event of a conflict between the terms of the SO and Attachment A, the terms of the SO will govern.  A party will not be liable for failing to perform because of strikes, riots, natural disasters, internet outages, terrorism, government action, or any other cause beyond the party’s reasonable control.  The parties are independent contractors, not agents, partners, employees or joint venturers.

 

(dd)           Definitions.

 

Above the Fold:  visible without scrolling down, right or left, at a screen resolution of 1024x768.

 

Ad Code:  the JavaScript or other code that initiates a Query when a user goes to an Ad Page.

 

Advertiser:  any entity providing advertising content to paid marketplace databases for display as Paid Results.

 

Advertiser Landing Page:  the landing page of the Advertiser associated with a Paid Result.

 

Agreement:  see preamble in the Terms and Conditions.

 

Algorithmic Listings:  any response to a search query, keyword or other request served from an index or indexes of data related to webpages generated, in whole or in part, by the application of an algorithmic search engine.

 

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Domain Match Links: as defined in the Domain Match Attachment, where applicable.

 

Domain Match Results: as defined in the Domain Match Attachment, where applicable.

 

Hyperlinks:  words that are displayed in the form of hyperlinks, that generate a Query when clicked on or used by a user.

 

Hyperlink Results:  the content of Advertisers served from paid marketplace databases in the Territory in response to a Query generated by a Hyperlink, provided for display as sponsored listings.  Hyperlink Results do not include Web Search Results.

 

Links:  Search Box, Hyperlinks, Ad Code and Domain Match Links, to the extent included in this Agreement.

 

Marks:  any Yahoo! trademark shown in the mockups.

 

Matched Ads:  the content of Advertisers served from paid marketplace databases in the Territory in response to a Query generated from the Ad Code.

 

Max Queries: Queries per second in excess of [CONFIDENTIAL TREATMENT REQUESTED]% of the average number of Queries per second sent by Publisher during the previous calendar year (even if the first calendar quarter after the Start Date is a partial one), as measured separately for Queries for each of Paid Search Results, Matched Ads, Domain Match Results, and Hyperlink Results.

 

Named Companies:  [CONFIDENTIAL TREATMENT REQUESTED], and all of their subsidiaries and affiliates.  Yahoo! may designate additional entities as Named Companies in writing during the Term.

 

Paid Results:  Paid Search Results, Domain Match Results, Hyperlink Results and/or Matched Ads.

 

Paid Search Results:  the content of Advertisers served from paid marketplace databases in the Territory in response to a Query generated through a Search Box, provided for display as sponsored listings.  Paid Search Results do not include Web Search Results.

 

Publisher Content:  all content residing on Publisher’s Offerings, including third party content,

	 	
but excluding the Links, Results and Marks.

 

Publisher’s Offerings:  any Sites, Syndicated Sites, Mapped Domains, and Applications identified in the SO and any Attachments.

 

Query:  a search query initiated from the Search Box or a Hyperlink, or a request for Matched Ads initiated by the Ad Code on an Ad Page.

 

Results:  Paid Search Results, Hyperlink Results, Domain Match Results, Web Search Results and/or Matched Ads, to the extent included in this Agreement and as appropriate to the context.

 

Search Box:  a graphical area in which a user can enter a Query.

 

SO:  the Service Order

 

Term:  the period between the Start Date and the End Date, plus any renewal periods, unless terminated earlier as provided in this Agreement.

 

Territory:  the following countries or regions where Yahoo! has a paid marketplace: Southeast Asia (which as of the Start Date includes Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia and the aforementioned countries or regions may be updated by Yahoo! from time to time during the Term.

 

Traffic Quality Scale:  the scale used by Yahoo! to measure traffic quality in a manner consistent among all Yahoo! search marketing publishers.

 

Web Search Results:  the responses served from Web search databases ranked by an algorithm designed to determine relevance.

 

Yahoo! Related Party:   at any time during the Term, Yahoo! Inc., and any joint venture of Yahoo! Inc., and any entity that directly or indirectly controls, is controlled by, or is under common control with Yahoo! Inc., where “control” means the ownership of, or the power to vote, at least twenty percent (20%) of the voting stock, shares or interests of such entity.  In the event of an assignment of all or part of this Agreement to a Yahoo! Related Party, the term “Yahoo!” used in this Agreement shall be deemed to refer exclusively to the Yahoo! Related Party as a party to this Agreement, to the extent of the assignment (as to both the Yahoo! Related Party’s responsibilities and rights).

 

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ATTACHMENT A - TRADEMARK LICENSE ATTACHMENT

 

	1.	 
License to Marks.  During the Term and subject to Publisher’s compliance with this Agreement, Yahoo! grants to Publisher a limited, non- exclusive, non-assignable, non-transferable, non-sublicensable (unless explicitly provided for under this Agreement), royalty-free license to display any Marks shown in the mockups, solely for purposes contemplated in this Agreement.

	 
 

	 
 
engage in any action that may dilute, diminish, or otherwise damage Yahoo!’s or its licensors’ rights and goodwill in the Marks.  If Publisher engages in any action that Yahoo! determines, in its sole discretion, disparages or devalues the Marks or Yahoo!’s or its licensors’ reputation or goodwill in the Marks, Yahoo! may terminate this Agreement or any license granted herein immediately upon notice.

	 	 	 	 
	 
2.

	 
 
Conditions of License.  Publisher may display the Marks solely as described in this Agreement.  Publisher may not alter any of the Marks.

	 
5.

 

	 
 
Trademark Guidelines.  Publisher will abide by the attached trademark quality control guidelines.  If Yahoo! provides any updated guidelines during the Term, Publisher will comply with the updated guidelines within a reasonable period of time.  Updates to the guidelines will generally address graphical and technical aspects of the Marks (such as color).

	 	 	 	 
	 
3.

	 
 
No Assertions as to Marks.  Publisher will not (a) assert any trademark or other intellectual property or proprietary right in the Marks or in any element, derivation, adaptation, variation or name thereof; (b) contest the validity of any of the Marks; (c) contest Yahoo!’s or its licensors’ ownership of any of the Marks; or (d) in any jurisdiction, adopt, use, register, or apply for registration of, whether as a corporate name, trademark, service mark or other indication of origin, or as a domain name, any Marks, or any word, symbol or device, or any combination confusingly similar to, or which includes, any of the Marks.

	 
6.

	 
 
Ownership of Marks. As between Yahoo! and Publisher, all right, title and interest in the Marks are exclusively owned by Yahoo!, its licensors and/or its Advertisers.  Yahoo! grants no rights to the Marks except for the limited license granted above.  Yahoo! reserves any rights not expressly granted and disclaims all implied licenses.

	 	 	 	 
	 	 
Goodwill in Marks.  As between Yahoo! and Publisher, any goodwill resulting from Publisher’s use of any Marks will inure to the benefit of Yahoo! and/or its licensors and will automatically vest in Yahoo! and/or its licensors upon use by Publisher.  Publisher will not

	7.	 
Misc.  If there is any conflict between this Trademark License Attachment and any other provision of the Agreement, the terms of this Trademark License Attachment will govern as to Publisher’s use of the Marks.

 

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General Guidelines for Use of the Yahoo! Search Brand by Yahoo! Partners

[CONFIDENTIAL TREATMENT REQUESTED]

 

 

Copyright Yahoo! Inc. All rights reserved. This document is YAHOO! CONFIDENTIAL.

 

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ATTACHMENT B - SYNDICATION ATTACHMENT

 

	 
1.

	 
Definitions.

	 	 
mockups of the proposed implementation, and any other information Yahoo! requests.

	 	 	 	 
	 
(a)

	 
“Syndication Affiliate” means a third party approved by Yahoo! (i) to or for whom Publisher sublicenses, distributes, or provides access to Links and/or Results; (ii) on whose behalf Publisher hosts or display Links and/or Results; or (iii) with whom Publisher shares the Paid Results payments that Publisher receives from Yahoo! under this Agreement.

	 	 
Yahoo! will provide Publisher with a written acceptance or rejection of each proposal after receipt of the information described above.  Yahoo! may reject any proposed Syndication Affiliate and any proposed Syndicated Site for any reason or no reason, in its sole discretion.

	 	 	 	 
	 
(b)

	 
“Syndicated Site” means the Syndication Affiliate websites that Yahoo! approves in writing.  Additional or successor sites owned or operated by approved Syndication Affiliates must each be individually approved by Yahoo! for sublicensing.

	 
4.

 	 
Required Terms.                      Publisher’s written agreement with each Syndication Affiliate will include the following:

	 	 	 	 
	 
2.

	 
Links and Results. Publisher may sublicense the following Links and Results to Syndicated Sites (“Syndication Right”):

	(a) 
 

	 
Yahoo! will be identified as a third party beneficiary of Publisher’s agreement with the Affiliate, entitled to enforce the provisions of that agreement as they pertain to Yahoo!;

	 	 	 	 
	 	 
x Search Box: Paid Search Results

	 
(b)

	 
An expiration date for the sublicensing of Links and Results that is no later than the end of the Term;

	 	 	 	 
	 	 
x Search Box: Web Search Results

	 
(c)

	 
Implementation requirements and mockups that are substantially identical to those in Attachment A;

	 	 	 	 
	 
3.

	 
Approval. Publisher must complete the Syndication Partner Approval Form (“SPAF”) for each Syndication Affiliate and each Syndicated Site and must obtain Yahoo!’s written approval of each Syndication Affiliate and each Syndicated Site.  Publisher will not sublicense, display, host or otherwise provide Links or Results to or for any Syndication Affiliate or any Syndicated Site that has not been approved by Yahoo! in writing or for which Yahoo! has terminated its approval.  So long as Yahoo! has not provided Publisher with a notice of a traffic quality shortfall for the existing Syndication Affiliates and Syndicated Sites under Section 21 (Traffic Quality Shortfall) of the Terms and Conditions within the most recent 6 months, Publisher may request approval of new Syndication Affiliates and Syndicated Sites by submitting a written proposal containing at least the following:

	 
(d)

 

 

 

 

 

 

 

 
(e)

	 
The Syndication Affiliate’s explicit agreement that (i) the Syndication Affiliate will not assign any right to, or further sublicense, the Links or Results provided by Publisher; (ii) the Syndicated Sites are subject to exclusivity terms that are substantially identical to those in Section 8 (Exclusivity) of the Terms and Conditions; and (iii) the Syndication Affiliate will not commit any act listed in Section 18 (Abuse of Services) of the Terms and Conditions; and

 

The Syndication Affiliate’s acknowledgement that Yahoo! may terminate Publisher’s ability to sublicense to Affiliate on 24 hours’ notice, for any reason or no reason.

	 	 	 	 
	 
(a)

	 
Syndication Affiliates: the Syndication Affiliate’s full legal name, contact information, a list of all websites that the Syndication Affiliate wholly- owns, majority-owns, controls and/or operates, a high level description of Publisher’s arrangement with the Syndication Affiliate and any other information Yahoo! requests.

	 	 
Publisher and the Syndication Affiliate will not modify their agreement as it pertains to Yahoo! without Yahoo!’s prior written consent.  Publisher will require the Syndication Affiliate to sign a written letter acknowledging each term above and will provide a copy of the letter to Yahoo! before Yahoo!’s approval of the Syndication Affiliate will take effect.

	 	 	 	 
	 
(b)

	 
Syndicated Sites:  the percentage of searches originating from outside the United States,

	5. 	Publisher’s Additional Obligations.
	 	 	 
(a)

	 
Publisher’s exclusivity obligations in Section 8 (Exclusivity) of the Terms and Conditions shall apply to Publisher’s sublicensing of Links and

 

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Results for actual and potential Affiliates.  Unless Yahoo! consents in writing, Publisher will not permit Syndication Affiliates to host pages containing Links or Results.  If Yahoo! agrees to allow an Affiliate to host pages containing Links and/or Results, Publisher will require the Syndication Affiliate to meet all of Publisher’s obligations under this Agreement with respect to the use and display of Links and Results.

	 
(a)

	 
Gross Revenue generated by Syndicated Sites will be treated in the same manner as the other Gross Revenue earned under this Agreement.  Yahoo! will make no compensation directly to any Syndication Affiliate and will have no responsibility for Publisher’s pricing or payment to Syndication Affiliates.

	 	 	 	 
	 
(b)

	 
Publisher will ensure that Results are not provided to any entity other than the Syndication Affiliate that owns the Syndicated Site, and are not sublicensed or distributed beyond the Syndicated Site.

	 
(b)

	 
Publisher’s or Syndication Affiliate’s violation of any requirements in this Syndication Attachment (including requirements incorporated by reference) shall result in a charge of [CONFIDENTIAL TREATMENT REQUESTED]% of the Gross Revenue generated through the Syndicated Sites per violation for each month in which Publisher or the Syndication Affiliate is not compliant, which fee helps to cover Yahoo!’s costs in monitoring and administering its sublicensing policies.  Yahoo! may deduct this charge from its payment(s) to Publisher.  This charge shall be in addition to any other remedy available to Yahoo! under this Agreement or at law.

	 	 	 	 
	 
(c)

	 
Publisher will ensure that the Syndication Affiliate complies with the provisions of its agreement with Publisher and with this Agreement.  For clarity, the parties agree that all of Yahoo!’s rights and Publisher’s obligations under this Agreement apply to Syndicated Sites.

	 
(c)

	 
If Publisher generates any revenue while Publisher or a Syndication Affiliate is in violation of any requirement of this Syndication Attachment, Yahoo! reserves the right to exclude the revenue attributable to such violation from its calculation of any amounts owed to Publisher.

	 	 	 	 
	 
(d)

	 
Publisher will maintain the technical ability to immediately suspend its provision of Links and Results for individual Syndication Affiliates and individual Syndicated Sites.

	 
7.

	 
No Restrictions.  Nothing in this Agreement will prevent Yahoo! from marketing or providing any product or service directly or indirectly to any prospective or approved Syndication Affiliate.

	 	 	 	 
	 
(e)

	 
Publisher will provide Yahoo! with a list of Internet Protocol addresses of its own servers and Syndication Affiliates’ servers used to send Queries to Yahoo! (“Recognized Servers”) and promptly notify Yahoo! in writing of any changes or additions to such list.  Yahoo! will have no obligation to make payment to Publisher with respect to Queries from servers that are not Recognized Servers.

	 
8.

 	 
Audit.  Yahoo! may audit Publisher for compliance with this Syndication Attachment once in each 6 month period during the Term and once during the 90 day period following expiration or termination of this Agreement.  Each audit will apply to the prior 6 months.  The audit may be conducted by Yahoo! or by an independent third party auditor reasonably acceptable to Publisher, at Yahoo!’s own expense.  The audit will be conducted at a mutually agreed time during normal business hours.  The third party auditor will be bound to confidentiality obligations substantially similar to the confidentiality obligations in this Agreement, and the results of the audit and all information reviewed during such audit will be deemed Publisher’s confidential information.  The auditor may review only those records that are reasonably necessary to determine Publisher’s compliance with this Syndication Attachment.

	 	 	 	 
	 
(f)

	 
Publisher will provide Yahoo! with a written report of all current Syndication Affiliates and Syndicated Sites upon Yahoo!’s request.

	 
9.

	
Suspension and Termination.

	 	 	 	 
	 
(g)

	 
Publisher will implement separate source feed indicators for each Syndication Affiliate and each implementation prior to launch of services, in addition to any other source feed indicators required by Yahoo! during the Term.

	 	 
	 	 	 	 
	 
(h)

	 
Publisher will immediately notify Yahoo! of any Affiliate’s failure to comply with any of the requirements in this Syndication Attachment and immediately terminate any Syndication Affiliate that sublicenses or distributes any Links or Results beyond the Syndicated Sites.

	 	 
	 	 	 	 
	 
6.

	 
Compensation.

	 	 

 

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(a)

	  If a Syndication Affiliate or Publisher, with respect to that specific Syndication Affiliate, fails to comply with any requirement hereunder, Yahoo! may do one or more of the following:	 	 
Publisher, then Yahoo! may terminate this Agreement without any cure period.

	 	 	 	 	 
	 	(i)	 
Suspend provision of Results in response to Queries from the Syndication Affiliate until the Syndication Affiliate becomes compliant;

	 
(d)

	 
In addition to the foregoing, Yahoo! may terminate the approved status of any Syndication Affiliate and/or any or all Syndicated Site(s) for any or no reason, on 24 hours’ notice to Publisher.  Within 24 hours of receiving such notice, Publisher will stop sending Yahoo! any Query from the Syndication Affiliate and/or Syndicated Site(s).

	 	 	 	 	 
	 	 
(ii)

	 
Require Publisher to stop sending Queries to Yahoo! from Publisher or the Syndication Affiliate until the Syndication Affiliate becomes compliant;

	 
10.

	 
 Indemnity.

	 	 	 	 	 
	 	 
(iii)

	 
Suspend provision of some or all Results to Publisher until the Syndication Affiliate becomes compliant or is terminated by Publisher; and/or

	 
(a)

	 
Claims by Syndication Affiliates against Publisher will not constitute third party claims covered by Yahoo!’s indemnity obligations in Section 14 (Yahoo! Indemnification) of the Terms and Conditions.

	 	 	 	 	 
	 	 
(iv)

	 
Terminate the Syndication Affiliate’s approved status immediately upon notice without any cure period.

	 
(b)

	 
Without limiting Publisher’s other indemnification obligations under this Agreement, Publisher will (i) indemnify, defend and/or settle, and pay damages awarded pursuant to, any third party claim brought against Yahoo!, any Yahoo! Related Party and any Advertiser, arising out of or related to any Syndicated Site and/or any Syndication Affiliate; and (ii) reimburse Yahoo! for any reasonable payment made to its Advertisers in settlement of costs, attorneys fees and damages incurred by such Advertisers in connection with bona fide, non-frivolous investigations or claims against such Advertisers, resulting from any Syndicated Site or the actions or inactions of any Syndication Affiliate, even if no formal claim has been brought against Yahoo! or its Advertisers or tendered pursuant to the procedure set forth above. The limitation of liability described in Section 17 (Limitation of Liability) of the Terms and Conditions shall not apply to any amounts owed by Publisher under this Section.

	 	 	 	 	 
	
(b)

	 
Yahoo! may terminate Publisher’s Syndication Right, subject to a 24 hour cure period, if Publisher or a Syndication Affiliate fails to comply with any requirement hereunder; provided that, if there has (i) been a previous instance of non-compliance by any Syndication Affiliate or by Publisher or (ii) if Links and/or Results are provided, sublicensed or distributed to any rejected or terminated Syndication Affiliates or Syndicated Sites, then Yahoo! may terminate Publisher’s Syndication Right without any cure period.  In addition, Yahoo! may suspend Publisher’s Syndication Right in the event of any noncompliance with any requirement hereunder.

	 
11.

 	 
Misc.  In the event of a conflict between the terms of this Syndication Attachment and any other provision of the Agreement, the terms of this Syndication Attachment will govern as to the sublicensing of Links and Results.

	 	 	 	 	 
	
(c)

	 
Yahoo! may terminate this Agreement, subject to a 24 hour cure period, if Publisher or an Affiliate fails to comply with any requirement hereunder; provided that, if (i) there have been 2 previous instances of non-compliance by any Syndication Affiliate, or (ii) there has been a previous instance of non-compliance by

	 	 

 

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