Document:

exv10w1

 

Amendment Number 4

TO

INFORMATION TECHNOLOGY SERVICES AGREEMENT

This is Amendment Number 4 (this “Amendment” or “Amendment 4”) to the
Information Technology Services Agreement dated as of January 1, 2003 (as
amended through the date of this Amendment, the “Agreement”) by and between Dex
Media, Inc. (“Dex”), and Amdocs, Inc. (“Amdocs”) and is made by Dex and Amdocs
effective as of August 13, 2004 (the “Amendment 4 Effective Date”).

     WHEREAS, Dex desires to procure from Amdocs, and Amdocs desires to provide
to Dex, Data Center and Managed Services (as defined in this Amendment), as New
Services provided pursuant to Section 11.5; and

     WHEREAS, the Parties desire to amend the Agreement to provide that the
Data Center and Managed Services are included thereunder, with such amendment
to be effected through this Amendment;

     NOW, THEREFORE, the Parties hereby agree as follows:

1. Introduction

	 	1.1	 	Except as otherwise specified in this Amendment, capitalized
terms used in this Amendment will have the same meanings as the same
capitalized terms in the Agreement.
	 
	 	1.2	 	Unless otherwise indicated, references to sections and to
schedules or other attachments are references to such sections or
schedules or other attachments of the Agreement.
	 
	 	1.3	 	In the event of any inconsistency between provisions
contained in this Amendment and provisions contained in the
Agreement, the provisions of this Amendment will have priority with
respect to such inconsistency, provided, however, the priority of
interpretation set forth in Section 21.15 shall continue to apply to
the Agreement as amended by this Amendment.
	 
	 	1.4	 	This Amendment consists of the following sections:

	 	1.	 	Introduction
	 
	 	2.	 	Amendment of Agreement Provisions
	 
	 	3.	 	Data Center and Managed Services

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	 	4.	 	Restated Schedules
	 
	 	5.	 	Amended Schedules
	 
	 	6.	 	New Schedules

	 	1.5	 	This Amendment includes each of the following attached
Annexes, all of which are attached to this Amendment and
incorporated into this Amendment by this reference:

	 	 	 	Annex 1: Amendment to Schedule C (Key Vendor Positions and Personnel)
	 
	 	 	 	Annex 2: Amendment to Schedule E (Statement of Work)
	 
	 	 	 	Annex 3: Restated Attachment E-1 (Roles and Responsibility Matrix:

                 Part A – Amdocs Customized Software Roles and Responsibilities Matrix;

                 Part B
– Non-Amdocs Customized Software Roles and Responsibilities
Matrix)

	 
	 	 	 	Annex 4: Amendment to Schedule E.1 

                 (Financial and Operational Responsibility Matrix)
	 
	 	 	 	Annex 5: New Schedule E.2 (Managed Third Parties)

	 
	 	 	 	Annex 6: New Schedule E.3 (Pass-Through Expenses)
	 
	 	 	 	Annex 7: Amendment No. 1 to Schedule G, Attachments
SLA-1 (Critical Service Level Matrix) and SLA-2 (Key
Measurements Matrix)
	 
	 	 	 	Annex 8: New Schedule H (Amendment 4 Transition Plan)
	 
	 	 	 	Annex 9: Amendment No. 1 to Schedule J (Charges)
	 
	 	 	 	Annex 10: Restated Schedule O.1 (Dex Facilities)
	 
	 	 	 	Annex 11: Reserved
	 
	 	 	 	Annex 12: New Schedule O.3 (Data Center and Managed
Services Software and Equipment)
	 
	 	 	 	Annex 13: New Schedule O.5 (Additional Dex Provided Equipment)
	 
	 	 	 	Annex 14: Amendment No. 1 to Schedule R (Reports)

	 	1.6	 	This Amendment constitutes an Order for purposes of Section
11.5 and the services contemplated hereunder, notwithstanding the
foregoing, shall constitute New Services provided pursuant to
Section 11.5; provided, however, this Amendment shall not constitute
an Order for purposes of Section 20.3(b).
	 
	 	1.7	 	All other provisions of the Agreement shall remain unchanged
by this Amendment and following the execution of this Amendment the
Agreement shall be the Agreement as amended hereby.

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	2.	 	Amendment of Agreement Provisions:

     The following provisions of the Agreement are amended as follows:

	 	2.1	 	Section 2.1(12) (Definitions; Amdocs Third Party Software) is
amended to add the following new sentence to the end thereof:
“Amdocs Third Party Software shall include Software owned by
Subcontractors and used in the performance of the Data Center and
Managed Services.”
	 
	 	2.2	 	Section 2.1(16) (Definitions; Change) is amended to read in
its entirety as follows:
	 
	 	 	 	“Change” means any change (i) to the Amdocs Software, Amdocs
Customized Software, Amdocs Documentation, Amdocs Customized
Documentation or Schedule O.4, including changes to related
programs, manual procedures, distribution parameters, or
schedules, or (ii) to the Services or to any Software, Equipment
or systems for which either Party has financial or operational
responsibility pursuant to Schedules E or E.1.
	 
	 	2.3	 	Section 2.1(69) (Definitions; New Services) is amended to add
the following new sentence to the end thereof: “In accordance with
Section 11.5(i), Minor DC&MS Change Requests shall not constitute
New Services”.
	 
	 	2.4	 	Section 2.1(76) (Definitions; Outsourcing Services) is
amended to read in its entirety as follows:
	 
	 	 	 	“Outsourcing Services” shall mean all services, functions,
responsibilities and tasks described in Section C of Schedule E,
as such services, functions, responsibilities and tasks may be
supplemented, enhanced, modified, or replaced in accordance with
this Agreement, including New Services agreed to with respect to
such Services pursuant to Section 11.5.
	 
	 	2.5	 	Section 2.1(82) (Definitions; Required Consents) is amended
to read in its entirety as follows:
	 
	 	 	 	“Required Consents” shall mean the consents (if any) required to
be obtained and to the extent provided in this Agreement: (i) to
grant Vendor the right to use and/or access the Dex Third Party
Software and Third Party Contracts in connection with providing
the Services; (ii) to grant Dex and the Eligible Recipients the
right to use and/or access the Vendor Owned Software, Amdocs Third
Party Software and Amdocs Equipment; (iii) to assign or transfer
to Dex any Developed Materials; (iv) to assign or transfer to Dex
or its designee Vendor Owned Software, Amdocs Third Party
Software, Third Party Contracts or other rights following the
Term, and (v) all other consents required from third parties to
enable the Vendor to provide the Data Center and Managed Services
or perform its obligations relating to such Services hereunder,
including, for the avoidance of doubt, such obligations pursuant
to Sections 4.2A and 4.3.

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	 	2.6	 	Section 2.1 (Definitions; Services) is amended to read in its
entirety as follows:
	 
	 	 	 	“Service(s)” means, collectively: (i) the Outsourcing Services;
(ii) the Implementation and Transition Services (including
Testing); (iii) the Data Center and Managed Services; (iv) the
Amendment 4 Transition Services; (v) the Termination Assistance
Services; and (vi) any services provided pursuant to Section 11.5
(including the Services provided pursuant to Amendment Number 3 to
the Agreement).
	 
	 	2.7	 	Section 2.1 (Definitions) is amended to add the following
definitions:

	 	(106)	 	“Amendment 4” shall mean the amendment to this
Agreement agreed to and executed by the Parties and
denominated as “Amendment 4.”
	 
	 	(107)	 	“Amendment 4 Commencement Date” shall mean the
date of Dex’s written notice to Vendor of the approval by
Dex’s board of directors of this Amendment 4, on which date
Vendor will assume full responsibility for the Data Center
and Managed Services.
	 
	 	(108)	 	“Amendment 4 Effective Date” shall mean the
date designated in Amendment 4 as the “Effective Date” of
Amendment 4.
	 
	 	(109)	 	“Amendment 4 Transition Plan” means the plan
set forth in Schedule H (and Annex 8 to Amendment 4) and
developed pursuant to Section 4.2A, which identifies tasks,
functions, responsibilities and Deliverables to be undertaken
by Vendor and Dex in connection with the transition of the
Data Center and Managed Services to Vendor, and the dates by
which each will be completed by Vendor and Dex, as
applicable.
	 
	 	(110)	 	“Amendment 4 Transition Period” shall mean the
period that commences on the Amendment 4 Effective Date and
expires on the date specified therefor in the Amendment 4
Transition Plan, unless expressly extended or otherwise
agreed to in writing by the Parties.
	 
	 	(111)	 	“Amendment 4 Transition Services” shall mean
all services, functions, responsibilities, tasks and
Deliverables described in the Amendment 4 Transition Plan and
Section 4.2A to be performed or delivered by Vendor during
the Amendment 4 Transition Period in accordance with this
Agreement, as such services, functions, responsibilities,
tasks and Deliverables may be supplemented, enhanced,
modified or replaced in accordance with this Agreement.

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	 	(112)	 	“Data Center and Managed Services” shall mean
all services, functions, responsibilities and tasks described
in Section D of Schedule E, as such services, functions,
responsibilities and tasks may be supplemented, enhanced,
modified, or replaced in accordance with this Agreement,
including any New Services agreed to with respect to such
Services pursuant to Section 11.5.
	 
	 	(113)	 	“Data Center and Managed Services Software and
Equipment” shall mean the Software and Equipment with respect
to which the Data Center and Managed Services shall be
provided. Data Center and Managed Services Software and
Equipment shall include (i) all Software and Equipment with
respect to which a Party has financial or operational
responsibility under Schedule E.1, (ii) all Software and
Equipment set forth in Schedule O.3, and (iii) all Software
and Equipment identified by Dex to be included in Data Center
and Managed Services Software and Equipment during the Term
of the Agreement.
	 
	 	(114)	 	“Managed Third Parties” shall mean the Dex
third party contractors listed on Schedule E.2, as such
Schedule may be amended from time to time. The Parties
acknowledge that as of the Amendment 4 Effective Date, the
only Managed Third Party is Qwest Communications Corporation
(or Affiliates) (“Qwest”).
	 
	 	(115)	 	“Minor DC&MS Change Request” shall mean any
function or activity or change thereto related to the Data
Center and Managed Services and/or the Data Center and
Managed Services Software and Equipment but other than the
Outsourcing Services that Dex requests Vendor to perform, and
that: (a) is different from or in addition to the Data Center
and Managed Services; and (b) reasonably requires five (5)
person days or less effort to perform. Minor DC&MS Change
Requests may also include functions and activities consistent
with the scope of the Data Center and Managed Services as of
the Amendment 4 Commencement Date, including changes or
efforts required to implement and operate routine new or
additional functions and activities associated with
day-to-day activities in Dex’s business operations such as
implementation and support of new or replacement Equipment
and Software.
	 
	 	(116)	 	“Pass-Through Expenses” shall mean the
expenses, if any, listed in Schedule E.3, as such list may be
amended by the Parties from time to time, for which Dex is
financially responsible, in accordance with Section 11.2 of
this Agreement, following processing and review of the third
party invoice by Vendor.

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	 	 	 	Vendor shall not charge any handling or administrative
charge in connection with its processing or review of such
invoices.

	 	2.8	 	Section 2.3 (Schedules and Attachments) is amended as
follows:

	 	2.8.1	 	To add a new sentence at the beginning of the
section, which reads as follows:
	 
	 	 	 	Unless otherwise expressly stated, references to specific
Schedules include all numbered subsidiary Schedules (e.g.,
references to Schedule E include not only Schedule E, but
also Schedules E.1, E.2, E.3 and E.4 and Attachment E-1).
	 
	 	2.8.2	 	To delete “Outsourcing Services -” from title
of Schedule E.
	 
	 	2.8.3	 	To delete “Reserved” in the reference to
Schedule E.2 and replace that word with “Managed Third
Parties”.
	 
	 	2.8.4	 	To delete “Reserved” in the reference to
Schedule E.3 and replace that word with “Pass-Through
Expenses”.
	 
	 	2.8.5	 	To delete “Reserved” in the reference to
Schedule H and replace that word with “Amendment 4 Transition
Plan”.
	 
	 	2.8.6	 	To delete “Reserved” in the reference to
Schedule O.3 and replace that word with “Data Center and
Managed Services Software and Hardware”.
	 
	 	2.8.7	 	To add reference to a new Schedule O.5
entitled “Additional Dex Provided Equipment”.

	 	2.9	 	Section 3.1 (Initial Term) is amended to replace the
reference to “December 31, 2007” with “August 12, 2009.”
	 
	 	2.10	 	Section 4.1 (Outsourcing Services) is amended to change its
title to “Outsourcing Services and Data Center and Managed Services”
and further, as follows:

	 	2.10.1	 	Section 4.1(a) (Outsourcing Services) is amended to read in
its entirety as follows:
	 
	 	 	 	Outsourcing Services and Data Center and Managed Services.
Commencing upon Acceptance of each Module as provided in
the Implementation and Transition Plan, Vendor shall
provide the Outsourcing Services with respect to such
Module to Dex, and, upon Dex’s written request, to Eligible
Recipients designated by

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	 	 	 	Dex. Commencing upon the Amendment 4 Commencement Date (or,
if later, the date on which Vendor assumes responsibility
for the Services in question in accordance with the
Amendment 4 Transition Plan), Vendor shall provide the Data
Center and Managed Services to Dex, and, upon Dex’s written
request, to Eligible Recipients designated by Dex. The
Outsourcing Services and the Data Center and Managed
Services shall consist of the services, functions and
responsibilities described in Schedule E, as they may
evolve or be supplemented, enhanced, modified or replaced
in accordance with this Agreement. Dex shall be
responsible for providing that Vendor will be entitled to
enter and use Qwest’s hosting facilities as described in
Schedule O.1.

	 	2.11	 	A new Section 4.2A (Amendment 4 Transition Services) is added
to the Agreement, which reads as follows:

	 	 	 	4.2A Amendment 4 Transition Services

	 	(a)	 	Amendment 4 Transition Services.
During the Amendment 4 Transition Period, Vendor shall
perform the Services described in the Amendment 4
Transition Plan attached as Schedule H (and Annex 8 to
Amendment 4), including in accordance with any Amendment
4 Transition Milestones set forth therein. To the extent
any tasks, functions or responsibilities not described
in the Amendment 4 Transition Plan are an inherent part
of the Services described therein or are required in
connection with the transition of the Data Center and
Managed Services to Vendor, such tasks, functions and
responsibilities shall be deemed to be part of the
Amendment 4 Transition Services to be performed, as if
such tasks, functions and responsibilities were
specifically described in the Amendment 4 Transition
Plan. Vendor also shall provide cooperation and
assistance reasonably required in connection with Dex’s
evaluation or testing of the Deliverables specified in
the Amendment 4 Transition Plan. Unless otherwise
agreed, Dex shall not incur any charges, fees or
expenses payable to Vendor or third parties in
connection with the Amendment 4 Transition Services,
other than those charges, fees and expenses specified in
Schedule J, and those incurred by Dex in connection with
its performance of tasks designated in the Amendment 4
Transition Plan or otherwise under this Agreement as
Dex’s responsibility.
	 
	 	(b)	 	Amendment 4 Transition Plan. The
Amendment 4 Transition Plan, identifies (i) the
Amendment 4 transition activities to be performed by
Vendor and the significant components and subcomponents
of each such activity; (ii) the Deliverables to be

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	 	 	 	completed by Vendor; (iii) the date(s) by which each such
activity or Deliverable is to be completed (“Transition
Milestones”); (iv) the contingency or risk mitigation
strategies to be employed by Vendor in the event of
disruption or delay; (v) any Amendment 4 Transition
responsibilities to be performed by Dex; (vi) any
Amendment 4 Transition resources to be provided by Dex;
and (vi) a reasonably detailed work plan which shall
identify Amendment 4 Transition activities to be performed
during the Amendment 4 Transition Period.
	 
	 	(c)	 	Performance. Vendor shall perform
the Amendment 4 Transition Services in a manner that
will not (i) materially disrupt or adversely impact the
business or operations of Dex, (ii) materially degrade
any of the Services then being received by Dex, or (iii)
materially interfere with Dex’s ability to obtain the
full benefit of the Services available during the
Amendment 4 Transition Period, except as may be
otherwise specifically provided in the Amendment 4
Transition Plan or as otherwise agreed in writing by the
Parties. Vendor shall identify and resolve, with Dex’s
reasonable assistance and cooperation, any problems that
may impede or delay the timely completion of each task
in the Amendment 4 Transition Plan that is Vendor’s
responsibility and shall use commercially reasonable
efforts to assist Dex with the resolution of any
problems that may impede or delay the timely completion
of each task in the Amendment 4 Transition Plan that is
Dex’s responsibility. Dex will promptly notify Vendor
in the event it determines that Dex will be delayed in,
or incapable of, performing any of its obligations under
the Amendment 4 Transition Plan. Except as otherwise
expressly provided in this Agreement (including the
Amendment 4 Transition Plan), Vendor shall be
responsible for providing the facilities, personnel, and
other resources necessary to provide the Services.
	 
	 	(d)	 	Reports. Vendor shall regularly
report to Dex on its progress in performing its
responsibilities and meeting the timetable set forth in
the Amendment 4 Transition Plan. Written status reports
shall be presented at least monthly in a manner agreed
upon by the Parties, and oral reports shall be provided
more frequently if reasonably requested by either Party.
Promptly upon receiving any information indicating that
Vendor may not perform its responsibilities or meet the
timetable set forth in the Amendment 4 Transition Plan,
Vendor shall notify Dex in writing of material delays
and shall identify for Dex’s consideration and approval
specific measures to address such delay and mitigate the
risks associated therewith.

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	 	(e)	 	Suspension or Delay of Transition
Activities. Dex reserves the right, in its sole
discretion, to suspend or delay the performance of the
Amendment 4 Transition Services and/or the transition of
all or any part of the Data Center and Managed Services.
If Dex elects to exercise this right, Dex shall
reimburse Vendor for any additional costs reasonably
incurred by Vendor as a direct result of such decision,
but only to the extent Vendor notifies Dex in advance of
such costs and prior to incurring such costs and uses
commercially reasonable efforts to minimize such costs.
	 
	 	(f)	 	Failure to Meet Amendment 4
Transition Milestones. The Parties acknowledge and
agree that the Amendment 4 Transition Plan may specify
various Amendment 4 transition milestones by which
material identified Amendment 4 transition activities
and/or deliverables are to be completed. Subject to any
applicability of Section 10.2 or 18.2, if Vendor fails
to meet an Amendment 4 Transition Milestone as
designated in the Amendment 4 Transition Plan, Vendor
shall reimburse Dex for any additional costs reasonably
incurred by Dex as a direct result of such failure and
delay, but only to the extent Dex uses commercially
reasonable efforts to minimize such costs and to
reasonably inform Vendor thereof. Neither the Amendment
4 Transition nor the activities and deliverables
associated with individual Amendment 4 Transition
Milestones shall be deemed complete until Dex has
determined that Vendor has successfully completed them
in accordance with the Acceptance criteria, processes
and standards identified in the Amendment 4 Transition
Plan. Subject to the provisions of Section 4.2A(g) and
(h), such reimbursement shall be the sole remedy for
such delay.
	 
	 	(g)	 	Termination for Cause. In accordance
with the procedures set forth in Section 20.1(a) and
subject to any applicability of Section 10.2 and 18.2,
Dex may terminate this Agreement for cause for Vendor’s
material failure to perform the Amendment 4 Transition
Services, including material default in meeting
Amendment 4 Transition Milestone(s).
	 
	 	(h)	 	Consequence of Termination for
Failure to Meet Amendment 4 Transition Milestones. If
this Agreement is terminated for cause pursuant to
Section 4.2A(g), notwithstanding Section 4.2A (f) and
subject to Section 18.3, Dex may recover the damages
suffered by Dex or the Eligible Recipients in connection
with such a termination, provided that: (1) Vendor’s
liability arising from or relating to such termination
shall in the aggregate be limited to Two Million Dollars
($2,000,000); and (2) if such termination is based on
Vendor’s failure to meet an Amendment

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	 	4	 	Transition Milestone, Vendor shall be entitled to
set-off against such damages any applicable costs
reimbursed pursuant to Section 4.2A(f).

	 	2.12	 	Section 4.3 (Termination Assistance Services) is amended as
follows:

	 	2.12.1	 	Section 4.3(b)(1) (Scope of Service; General Support) is
amended to add the following immediately after each reference
to “Amdocs Customized Software” in clauses (iii), (iv), (v)
and (vi) thereof:

or any other Software then being used by Vendor or its
Affiliates or Subcontractors in the provision of the Data
Center and Managed Services
	 
	 	2.12.2	 	Section 4.3(b)(2) (Scope of Service; Hiring) is amended to
replace the first sentence thereof in its entirety with the
following:

Dex or Dex’s designee shall be permitted to undertake,
without interference from Vendor or Vendor Affiliates
(including counter-offers), to hire, effective after the
later of the termination of the Term or completion of any
Termination Assistance Services requested under Section
4.3(a)(1) or Section 4.3(a)(2), (i) any of the On-Site
Vendor Personnel or Vendor Personnel who were On-Site
Vendor Personnel within the 12-month period prior to the
expiration or termination date and performing Outsourcing
Services, or (ii) any of the Vendor Personnel primarily
assigned to perform Data Center and Managed Services within
the 12-month period prior to the expiration or termination
date.
	 
	 	2.12.3	 	Section 4.3(b)(3) (Scope of Service: Software) is amended
to add “and Vendor Owned Software” immediately after the
reference to “Amdocs Third Party Software” therein.

	 	2.13	 	Section 4.4(b) (Use of Third Parties; Vendor Cooperation) is
amended as follows:

	 	2.13.1	 	to add the phrase “and any Vendor Owned Software”
immediately after each reference to “Amdocs Third Party
Software” therein; and
	 
	 	2.13.2	 	to add the phrase “and any other Equipment used by Vendor
or its Affiliates or Subcontractors in providing the Data
Center and Managed Services” immediately after each reference
to “Amdocs Equipment” therein.

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	 	2.14	 	Section 5.2 (Financial Responsibility) is amended to add a
new sentence at the end thereof which reads as follows:
Notwithstanding the foregoing, in the case of any Required
Consents associated with the Data Center and Managed Services that
Dex is required to obtain and provide, Vendor will pay one-half of
the costs Dex incurs in order to obtain and provide such Required
Consents, up to a total payment by Vendor to Dex of $100,000,
provided that Dex uses commercially reasonable efforts to minimize
such costs.
	 
	 	2.15	 	A new Section 5.3 (Contingent Arrangements) is added, which
reads as follows:

	 	5.3	 	Contingent Arrangements
	 
	 	 	 	If, despite using all commercially reasonable efforts,
either Party is unable to obtain any Required Consent
associated with the Data Center and Managed Services for
which it is responsible, the Parties shall use all
commercially reasonable efforts to determine and adopt
mutually acceptable alternative approaches as are necessary
and sufficient to provide such Services without such
Required Consent. In addition, if the Parties are unable
to obtain a Required Consent which has or may reasonably be
expected to have a material adverse impact on the use or
enjoyment of the Data Center and Managed Services by Dex or
the Eligible Recipients, Dex may terminate the Data Center
and Managed Services for convenience in accordance with
Section 20.3(a), provided, however, that the
one-hundred-eighty (180) day notice period shall be
decreased to ninety (90) days and Dex shall not be
obligated to pay any Termination Charge in connection with
such termination.

	 	2.16	 	Section 6.4 (Software) is amended as follows:

	 	2.16.1	 	Section 6.4(b) (Operational Responsibility) is amended to
add the following sentence to the end thereof:

	 
	 	 	 	Notwithstanding the foregoing, without limiting the
provisions of Section 9.5, with respect to Software and
related Third Party Contracts for which Vendor is
operationally responsible under Schedule E.1 and used in
connection with the Data Center and Managed Services,
Vendor shall be responsible for performing all the
activities for which Vendor is responsible in accordance
with Schedule E.

	 	2.17	 	Section 6.5 (Equipment) is amended as follows:

	 	2.17.1	 	Section 6.5(a) (Dex Provided Equipment and Associated
Software) is amended to replace the first and second sentence
in its entirety with the following:

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	 	 	 	Dex shall make available (at no cost to Vendor) for
Vendor’s use at the Dex Facilities the personal
computing equipment and associated Software described
in Section 3.1.2 of Schedule O.4 and in Schedule O.5
(collectively, the “Dex Provided Equipment”), solely
as necessary and exclusively for the On-Site Vendor
Personnel and the Vendor Personnel located at Dex
Facilities performing Data Center and Managed
Services, in each case strictly for the purpose of
enabling such Vendor Personnel to perform the
Services and Dex shall have no obligation to provide
new Equipment or Software beyond that specified in
Section 3.1.2 of Schedule O.4 and in Schedule O.5
unless expressly agreed by the Parties. Dex will
provide maintenance (including routine Software
upgrades) and support, including technology
refreshment, for the Dex Provided Equipment in
accordance with its then regular maintenance, support
and refreshment practices for similarly situated
equipment of Dex personnel at the respective Dex
Facility, except to the extent that such activities
are to be performed by Vendor, as part of the Data
Center and Managed Services. For avoidance of doubt,
the foregoing shall not relieve Dex of its
obligations to pay Charges hereunder.

	 	2.17.2	 	Section 6.5(c) (Operational Responsibility) is amended to
add the following sentence to the end thereof:
	 
	 	 	 	Notwithstanding the foregoing, without limiting the
provisions of Section 9.5, with respect to any other
Equipment and related Third Party Contracts for which
Vendor is operationally responsible under Schedule E.1,
Vendor shall be responsible for performing all the
activities for which Vendor is responsible in accordance
with Schedule E.

	 	2.18	 	Section 6.8 (License to Vendor Owned Software and Amdocs
Third Party Software) is amended to read in its entirety as follows:
	 
	 	 	 	Effective as of the Effective Date and to the extent necessary to:

	 	(i)	 	receive the full benefit of the
Services under this Agreement during the Term and any
Termination Assistance Services period;
	 
	 	(ii)	 	perform or have performed
information technology services

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	 	 	 	of the nature of the Services on behalf of Dex and/or
the Eligible Recipients; and

	 	(iii)	 	perform or have performed
ancillary services and functions ancillary to the
Services for Dex and/or the Eligible Recipients,
including related information technology services and
functions;

	 	 	 	Vendor hereby grants to Dex and the Eligible Recipients, at no
additional charge, a non-exclusive, royalty-free right and license
to access and/or use (i) the Vendor Owned Software, and (ii)
subject to obtaining any Required Consents, the Amdocs Third Party
Software (including related documentation, methodology and tools).
In addition, at no additional Charge, Vendor hereby grants to
Dex’s third party contractor(s) a non-exclusive, royalty-free
right and license to access and/or use such Vendor Owned Software
or Amdocs Third Party Software (including related documentation,
methodology and tools) during the Term and any Termination
Assistance Services period, for the benefit of Dex and the
Eligible Recipients, as and to the extent necessary for such third
party contractor to:

	 	(i)	 	monitor, access, interface with
or use such Software then being used by Vendor;
	 
	 	(ii)	 	perform information technology
services and functions of the nature of the Services
on behalf of Dex and/or the Eligible Recipients; and
	 
	 	(iii)	 	perform or have performed
ancillary services and functions ancillary to the
Services for Dex and/or the Eligible Recipients,
including related information technology services and
functions;

	 	 	 	provided, that any such Dex third party contractor shall comply
with Vendor’s reasonable security and confidentiality requirements
applicable to such Vendor Owned Software or Amdocs Third Party
Software, including the signing of a non-disclosure agreement with
Vendor as specified in Section 13.3(b)(ii). Except as otherwise
expressly provided in this Agreement, Vendor Owned Software shall
remain the property of Vendor.

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	 	2.19	 	A new Section 6.11 (Managed Third Parties) is added to the
Agreement, which reads as follows:

	 	6.11	 	Managed Third Parties.

	 	 	 	Vendor shall manage the Managed Third Parties in accordance
with Schedule E and be responsible for performing all the
activities for which Vendor is responsible in accordance
with Schedule E. To the extent specified in Schedule E.2
or agreed in writing by the Parties, Vendor shall be
responsible for costs and charges and other obligations of
Dex associated with such Managed Third Parties. Vendor
shall be Dex’s and the Eligible Recipients’ sole point of
contact regarding the services provided by such Managed
Third Parties.

	 	2.20	 	Section 8.1(a)(i) (Transitioned Personnel; Offers and
Employment; Vendor Offers of Employment) is amended in its entirety
to read as follows:
	 
	 	 	 	Vendor (i) may extend offers of employment to those Dex Personnel
identified by Dex as potential Vendor hires pursuant to the
Implementation and Transition Plan who apply for such employment
by submitting an employment application form to Vendor, and (ii)
shall extend offers of employment to those Dex Personnel
identified by Dex as potential Vendor hires pursuant to the
Amendment 4 Transition Plan (in each case, the “Potential
Employees”). Such offers shall be for employment for an
indeterminate period of time with Vendor in positions comparable
to those held by such employees at Dex. Such personnel will have
initial base wages or salaries comparable to those paid by Dex as
of the date of such offers, and will receive employee benefits as
specified in Section 8.2(a) and, if hired pursuant to the
Implementation and Transition Plan, Schedule M. Dex employees
accepting such offers shall be hired by Vendor (i) no later than
the date of the expiration of the Implementation and Transition
Period in the case of Potential Employees under the Implementation
and Transition Plan, or (ii) no later than the date(s) indicated
in the Amendment 4 Transition Plan, unless, in either case,
otherwise agreed by the Parties.
	 
	 	2.21	 	Section 8.1(b) (Minimum Retention) is amended by deleting the
first sentence of such section in its entirety and replacing it with
the following two sentences:
	 
	 	 	 	In the event Vendor terminates the employment of a Transitioned
Employee hired pursuant to the Implementation and Transition Plan
within the first twelve (12) months after his or her Employment
Effective Date for any reason other than for cause or performance,
Vendor shall provide such Transitioned Employee with a severance
payment in accordance with Section 8.2(d). In the case of
Transitioned Employees hired pursuant to the Amendment 4
Transition Plan, Vendor agrees that it shall not terminate any
such Transitioned Employee other than for performance or cause
prior within four (4) months of their Employment
Effective Date.

Page 14 of 31

 

Page 15 of 31

 

	 	2.22	 	Reserved.
	 
	 	2.23	 	Section 9.4 (Quality Assurance) is amended as follows:

	 	2.23.1	 	Section 9. 4(a) (Processes and Procedures) is amended to
add the following at the end of such section:
	 
	 	 	 	Without limiting the foregoing, the processes, procedures
and controls developed and implemented by Vendor with
respect to the Data Center and Managed Services shall
provide for: (i) the maintenance of a strong control
environment for day-to-day operations; (ii) the performance
of annual internal control self-assessments with respect to
such Services; and (iii) an internal audit function
sufficient to monitor the processes and systems used to
provide the Services (i.e., perform audits, track control
measures, communicate status to management, drive
corrective action, etc.).
	 
	 	2.23.2	 	A new Section 9.4(c) (Data Center and Managed Services
Processes and Procedures) is added, which reads as follows:

	 	(c)	 	Data Center and Managed Services
Processes and Procedures. Vendor shall use the
quality assurance processes, procedures and controls
specified in Schedule E for ensuring the quality of
the Data Center and Managed Services. No failure or
inability of the quality assurance procedures to
disclose any errors or problems with the Data Center
and Managed Services shall excuse Vendor’s failure to
comply with the Service Levels and other terms of this
Agreement.

	 	2.24	 	Section 9.6 (Change Control) is amended as follows:

	 	2.24.1	 	Section 9.6(a) (Change Control; Compliance with Change
Control Procedures) is amended as follows:

	 	2.24.1.1	 	To replace the parenthetical appearing in the
first sentence in its entirety with the following:
	 
	 	 	 	(which shall reflect Dex’s control of
Strategic Decisions, architecture, standards
and plans described in Section 9.5 and the
applicable provisions of Schedule E)

Page 15 of 31

 

	 	2.24.1.2	 	To add “or any other Software or Equipment used by
Vendor or its Affiliates or Subcontractors to provide
the Data Center and Managed Services” immediately
following the reference to “Amdocs Equipment” in the
second sentence thereof.

	 	2.24.2	 	Section 9.6(b) (Change Control; Change Costs) is amended to
add “or any other Software or Equipment used by Vendor or its
Affiliates or Subcontractors to provide the Data Center and
Managed Services” immediately following the reference to
“Amdocs Equipment” in both clauses (ii) and (iii) thereof.
	 
	 	2.24.3	 	Section 9.6(c) (Change Control; Approval by Dex) is amended
to add “or any other Software or Equipment used by Vendor or
its Affiliates or Subcontractors to provide the Data Center
and Managed Services and any other Software or Equipment
about which information respecting such potential affect is
reasonably requested by Dex (and reasonably within Vendor’s
scope of knowledge)” immediately following the reference to
“Amdocs Customized Software” in the penultimate sentence
thereof.
	 
	 	2.24.4	 	Section 9.6(h) (Change Control; Comparisons) is amended to
add “or any other Software or Equipment used by Vendor or its
Affiliates or Subcontractors to provide the Data Center and
Managed Services and any other Software or Equipment about
which information respecting such potential affect is
reasonably requested by Dex (and reasonably within Vendor’s
scope of knowledge)” immediately following the reference to
“Amdocs Equipment” in the first sentence thereof.

	 	2.25	 	Section 9.7 (Software Currency) is amended as follows:

	 	2.25.1	 	Section 9.7(a) (Software Currency; Currency of Software) is
amended in its entirety to read as follows:

	 	(a)	 	Currency of Software. Subject to
and in accordance with Sections 6.4, 9.5, 9.6, 9.7(c)
and Schedule J, Vendor agrees to maintain reasonable
currency for the Amdocs Customized Software and the
Third Party Software used in conjunction with the
Amdocs Customized Software as set forth in Section
3.1.1 of Schedule O.4 and any other Software for which
Vendor is financially or operationally responsible
under this Agreement, and to provide support for new
releases and versions of such Software. For purposes
of this Section, “reasonable currency” shall mean
that, as directed by Dex, (i) Vendor shall maintain
the

Page 17 of 31

 

	 	 	 	applicable Software within one Major Release of the
then current Major Release of such Software, and (ii)
Vendor shall install Minor Releases of the Amdocs
Customized Software and any other Software for which
Vendor is financially or operationally responsible
under this Agreement as scheduled pursuant to the
change management procedures of the Policy and
Procedures Manual. Vendor shall promptly inform Dex
of available Major Releases and Minor Releases of
Third Party Software used in conjunction with the
Amdocs Customized Software as set forth in Section
3.1.1 of Schedule O.4 and any other Software for
which Vendor is financially or operationally
responsible under this Agreement.

	 	2.25.2	 	Section 9.7(b) (Evaluation and Testing) is amended as
follows:

	 	2.25.2.1	 	to add “and any other Software for which Vendor is
financially or operationally responsible under
Schedule E” immediately after the reference to “Amdocs
Customized Software” in the first sentence thereof;
and
	 
	 	2.25.2.2	 	to replace clause (iii) in the first sentence in
its entirety with the following:
	 
	 	 	 	(iii)  adversely impact the functionality,
interoperability, performance or resource
efficiency of the Amdocs Customized Software
or other Software used by Vendor or its
Affiliates or Subcontractors to provide the
Data Center and Managed Services and any other
Software or Equipment about which information
respecting such potential affect is reasonably
requested by Dex (and reasonably within
Vendor’s scope of knowledge), or the Services
(including Service Levels)

	 	2.25.3	 	Section 9.7(c) (Approval by Dex) is amended as follows:

	 	2.25.3.1	 	to add “and prior to installing any other Software
through performance of the Data Center and Managed
Services”, immediately following the reference to
“Schedule O.4” in the first sentence thereof; and
	 
	 	2.25.3.2	 	to add “or other Software” immediately following
the reference to “Amdocs Customized Software” in
the last sentence thereof.

Page 17 of 31

 

	 	2.26	 	Section 9.8 (Year 2000 Compliance) is amended as follows:

	 	2.26.1	 	Section 9.8(c) (Third Party Equipment or Software) is
amended to add “or other Software used by Vendor or its
Affiliates or Subcontractors in the performance of the Data
Center and Managed Services” immediately following the
reference to “Amdocs Third Party Software” in the first
sentence thereof.

	 	2.27	 	Section 9.10 (Audit Rights) is amended as follows:

	 	2.27.1	 	Section 9.10(b) (Operational Audits) is amended as follows:

	 	2.27.1.1	 	to add immediately following the term,
“Outsourcing Services” in the second sentence thereof
the following: “and Data Center and Managed
Services”; and
	 
	 	2.27.1.2	 	to add the following parenthetical clause to the
end of the second sentence thereof: “(including those
associated with the Sarbanes-Oxley Act of 2002 and the
implementing regulations promulgated by the United
States Securities and Exchange Commission and Public
Accounting Oversight Board).”

	 	2.27.2	 	A new Section 9.10(i) is added, which reads as follows:

	 	(i)	 	SAS70 Audit. In addition to its
other obligations under this Section 9.10, Vendor
shall assist Dex in connection with any performance
Type II Statement of Auditing Standards (“SAS”) 70
audits (or equivalent audits) conducted with respect
to any facility at or from which the Data Center and
Managed Services are provided (including for the
avoidance of doubt, the hosting facilities provided by
Qwest). Vendor shall reasonably assist Dex in its
participation in the planning of such audits,
including conferring as to the scope and timing of
each such audit and other requirements to facilitate
periodic compliance reporting by Dex and the Eligible
Recipients under the Sarbanes-Oxley Act of 2002 (and
implementing regulations promulgated by the United
Securities and Exchange Commission and Public
Accounting Oversight Board) and comparable Laws in
other jurisdictions. In the event the audit report
from any such audit recommends changes to the Data
Center and Managed Services, the Parties will

Page 18 of 31

 

	 	 	 	jointly review and discuss such recommendations and
the feasibility of their implementation and, subject
to the approval of Dex and the provisions of Section
11.5, as applicable, Vendor shall implement such
changes.

	 	2.28	 	Section 9.12 (Disbursements and Reimbursements) is amended as
follows:

	 	2.28.1	 	Section 9.12(a) (Limited Agency) is amended to replace the
first sentence thereof in its entirety with the following:
	 
	 	 	 	Subject to Section 10.1, Dex hereby appoints Vendor as its
limited agent during the Term solely for the purposes of
and to the extent required and agreed by the Parties for
the administration of and payment of any Pass-Through
Expenses, amounts under Managed Third Party agreements and
amounts under Third Party Contracts, Equipment leases, and
Third Party Software licenses for which Vendor is
financially responsible under Schedule E or E.1.

	 	2.29	 	Section 11.2 (Efforts to Minimize Retained Expenses) is
amended to change its title to “Pass-Through and Retained Expenses,”
and to read in its entirety as follows:

	 	11.2	 	Pass-Through and Retained Expenses.

	 	(a)	 	Procedures and Payment of
Pass-Through Expenses. Unless otherwise agreed by the
Parties, Dex shall pay all Pass-Through Expenses
directly to the applicable suppliers following review,
validation and approval of such Pass-Through Expenses by
Vendor. All approved Pass-Through Expenses as of the
Amendment 4 Commencement Date will be detailed in
Schedule E.3. Before submitting an invoice to Dex for
any Pass-Through Expense, Vendor shall (i) review and
validate the invoiced charge, (ii) identify any errors
or omissions, and (iii) communicate with the applicable
supplier to correct any errors or omissions, resolve any
questions or issues and obtain any applicable credits
for Dex. Vendor shall deliver to Dex the original
supplier invoice, together with any documentation
supporting such invoice and a statement that Vendor has
reviewed and validated the invoiced charges, as quickly
as reasonably possible but in all events within fifteen
(15) days after Vendor’s receipt thereof; provided that,
if earlier, Vendor shall use all commercially reasonable
efforts to deliver such invoice, documentation and
statement at least five (5) business days prior to the
date on which payment is due or by which Supplier offers
a discount. To the extent Vendor fails to comply with
its

Page 19 of 31

 

	 	 	 	obligations hereunder, it shall be financially responsible
for any resulting discounts lost or any late fees or
interest charges incurred by Dex and/or the Eligible
Recipients.

	 	(b)	 	Efforts to Minimize. Vendor will
seek to identify methods of reducing and minimizing
Dex’s retained expenses and Pass-Through Expenses and
will notify Dex of such methods and the estimated
potential savings associated with each such method.

	 	2.30	 	Section 11.4(b) (Taxes; Sales, Use and Property Taxes) is
amended to add the following to the final sentence thereof: “and
for any increase in any such tax as a result of such Party moving
any Equipment, Software or other property used in connection with
the Services under this Agreement to a different jurisdiction”.
	 
	 	2.31	 	Section 11.5 (New Services, Enhancements and Minor
Enhancements) is amended as follows:

	 	2.31.1	 	The heading of Section 11.5 is amended to be: “New
Services, Enhancements, Minor Enhancements and Minor DC&MS
Change Requests”
	 
	 	2.31.2	 	The last sentence of Section 11.5(a) (New Services,
Enhancements, Minor Enhancements and Minor DC&MS Change
Requests; Procedures) is amended in its entirety to read as
follows:
	 
	 	 	 	For the avoidance of doubt, (i) Minor Enhancements and
Minor DC&MS Change Requests shall not constitute New
Services, and (ii) unless otherwise agreed by the Parties
(including pursuant to Section 11.8(c)), Enhancements shall
constitute New Services.
	 
	 	2.31.3	 	A new Section 11.5(i) (New Services, Enhancements, Minor
Enhancements and Minor DC&MS Change Requests; Specific
Procedures for Minor DC&MS Change Requests) is added to read
in its entirety as follows:

	 	(i)	 	Specific Procedures for Minor
DC&MS Change Requests. The following procedures, as
further detailed in the Policy and Procedures Manual
shall apply to Minor DC&MS Change Requests:

	 	(i)	 	Dex will provide
Vendor a description of any desired Minor DC&MS
Change Request.
	 
	 	(ii)	 	Vendor will review
the provided Minor DC&MS Change Request
description and work with Dex to

Page 20 of 31

 

	 	 	 	resolve and clarify any issues associated with
the initiation and/or performance thereof.

	 	(iii)	 	Following such
resolution and clarification, if Dex determines
to proceed with the proposed Minor DC&MS Change
Request, it will so notify Vendor.
	 
	 	(iv)	 	Upon receipt of Dex’s
notification to proceed with the Minor DC&MS
Change Request, Vendor will initiate performance
of the Minor DC&MS Change Request.
	 
	 	(v)	 	Minor DC&MS Change
Requests do not constitute New Services and
shall not be subject to additional charge by
Vendor, but shall be otherwise subject to the
general provisions of Section 11.5(a) as if
constituting New Services, and upon Vendor’s
initiation of performance thereof, Minor DC&MS
Change Requests shall constitute Data Center and
Managed Services.

	 	2.32	 	Section 11.10(b) (Refundable Items; Refunds and Credits) to
add “Pass-Through Expense,” immediately following the term “retained
expense” in the first sentence thereof.
	 
	 	2.33	 	A new Section 11.12 (Benchmarking Reviews) is added to the
Agreement, which reads as follows:

	 	11.12	 	Benchmarking Reviews.

	 	(a)	 	Benchmarking Review. After twenty
four (24) months following the Amendment 4 Commencement
Date and from time to time thereafter, Dex may, at its
expense and subject to this Section 11.12, engage the
services of an independent third party (a “Benchmarker”)
to compare the quality and cost of the Data Center and
Managed Services against the quality and cost of other
well managed service providers performing Equivalent
Services to ensure that Dex is receiving from Vendor
Competitive Pricing for Equivalent Quality, as such
terms are defined in Section 11.12(b) (such comparison
is referred to hereinafter as the “Benchmarking”).
	 
	 	(b)	 	As used in this Section 11.12:

	 	(i)	 	“Equivalent Services” shall
mean: (i) services that are reasonably equivalent to
the Data Center and Managed

Page 21 of 31

 

	 	 	 	Services; (ii) services that are performed with
respect to software and equipment that are reasonably
equivalent to the Data Center and Managed Services
Software and Equipment; and (iii) services that are
performed at a facility in North America that is
equivalent to the Vendor Facility in North America at
which the Data Center and Managed Services are
performed.

	 	(ii)	 	“Competitive Pricing” shall
mean prices that are equal to or less than the
average prices charged by other well managed
information technology service providers for
Equivalent Services and Equivalent Quality over a
five-year term.
	 
	 	(iii)	 	“Equivalent Quality” shall
mean a level of compliance with service levels that
are reasonably equivalent to the Service Levels
applicable to the Data Center and Managed Services,
by other well managed information technology service
providers providing Equivalent Services, that is
equal to or better than the Vendor’s level of
compliance with such Service Levels.

	 	 	 	To the extent any of the foregoing comparable factors
shall not be reasonably available to the Benchmarker, the
Benchmarker shall be entitled to make appropriate
normalizing adjustments and assumptions to such data as
the Benchmarker shall have available to it, all in the
reasonable judgment of the Benchmarker.
	 
	 	(c)	 	In performing the Benchmarking, the
Benchmarker shall consider the following factors as and
to the extent it reasonably deems appropriate:

	 	(i)	 	whether vendor transition
charges are paid by the customer as incurred or
amortized over the term of the agreement;
	 
	 	(ii)	 	the extent to which vendor
pricing includes the purchase of the customer’s
existing assets;
	 
	 	(iii)	 	the extent to which supplier
pricing includes the cost of acquiring future assets;
	 
	 	(iv)	 	the extent to which this
Agreement calls for Vendor to provide and comply with
unique Dex requirements;
	 
	 	(v)	 	whether Non-Income Taxes are
included in such pricing or stated separately in
supplier invoices;

Page 22 of 31

 

	 	(vi)	 	the term of the agreement;
	 
	 	(vii)	 	the ability of the vendor to
raise prices or otherwise increase its charges during
the term;
	 
	 	(viii)	 	whether the vendor is a known and reputable
provider of Equivalent Services;
	 
	 	(ix)	 	fixed price as opposed to time
and materials charges;
	 
	 	(x)	 	the vendor’s obligations and
performance under the related service level
agreements and any penalties or credits associated
with failure to comply with service levels;
	 
	 	(xi)	 	the extent of the warranties
and indemnities provided by the vendor; and
	 
	 	(xii)	 	any other provisions affecting
the benefits and risks inherent in each transaction.

	 	(d)	 	General. Any Benchmarker engaged by
Dex shall execute a non-disclosure agreement
substantially in the form attached hereto as Exhibit 1.
Vendor shall fully cooperate with Dex and the
Benchmarker during such effort and shall provide the
Benchmarker reasonable access to premises, equipment and
information reasonably required by the Benchmarker to
conduct the Benchmarking, at Vendor’s expense. The
Benchmarking shall be conducted so as not to
unreasonably disrupt Vendor’s normal operations.
	 
	 	(e)	 	Result of Benchmarking. If the
Benchmarker finds that the Charges paid by Dex for all
of the Data Center and Managed Services are higher than
Competitive Pricing, the following provisions shall
apply:

	 	(i)	 	Vendor’s Charges for the Data
Center and Managed Services following the
Benchmarking will be reduced by the amount required
for such Charges to constitute Competitive Pricing,
subject to the remainder of this Section.
	 
	 	(ii)	 	Notwithstanding the foregoing,
on the basis of any Benchmarking, Vendor will not be
required to reduce its Charges for the Data Center
and Managed Services by more than ten (10%) percent,
without the Vendor’s consent. If, on the basis of
any Benchmarking, such Charges would need to be
reduced by more than ten percent (10%) in order for
them to constitute Competitive Pricing, and Vendor

Page 23 of 31

 

	 	 	 	does not consent to such reduction, Dex will be
entitled to terminate the Data Center and Managed
Services for convenience in accordance with Section
20.3(a). In the event of any such termination, the
following provisions shall apply: (i) Dex will be
required to pay all Termination Charges payable under
Section 20.3(a) and Schedule J as a result of such
termination, (ii) Dex shall extend offers of
employment to any of the Transitioned Employees from
the Amendment 4 Transition then remaining in the
employ of Vendor and dedicated to the provision of
Data Center and Managed Services, with such offers
being offers of employment for an indeterminate
period of time with Dex and in positions comparable
to those then held by such employees at Vendor, at
initial base wages or salaries comparable to those
paid by Vendor (as measured from ninety (90) days
prior to the application of this subsection) and with
employee benefits consistent with those then offered
by Dex; and (iii) the written notice required of Dex
shall be reduced to ninety (90) days.

	 	(f)	 	Vendor Review. Dex shall provide
Vendor with a copy of the Benchmarker’s report and
Vendor shall have forty-five (45) days to review such
report and contest the Benchmarker’s findings. The
Benchmarker shall cooperate with the Vendor during such
review (at Vendor’s expense), including by providing
information relating to the Benchmarker’s report and
findings requested by Vendor. If the Parties are unable
to agree upon the validity of such findings or the
amount of the reductions in Vendor’s Charges, the matter
shall be resolved pursuant to the dispute resolution
procedures set forth in Article 19. Reductions in
Vendor’s Charges shall be implemented effective as of
the date the Benchmarker’s report was first provided to
Vendor.

	 	2.34	 	A new Section 11.13 (Major Events) is added to the Agreement,
which reads as follows:
	 
	 	 	 	Section 11.13 Major Events

	 	(a)	 	Extraordinary Events. As used in
this Agreement, an “Extraordinary Event” means an event
or discrete set of events which has occurred or is
reasonably anticipated to occur with respect to the
business of Dex, that results or will result in a
substantial and permanent decrease or increase in the
scope, nature or volume of the Data Center and Managed
Services that the Eligible Recipients will require from
Vendor after such event(s) (the “New Scope of Services”)
in comparison to the scope, nature or volume of the Data
Center and Managed

Page 24 of 31

 

	 	 	 	Services which would have been required if not for such
event(s) (the “Original Scope of Services”). Examples of
Extraordinary Events include the following:

	 	(i)	 	changes in locations where Dex
operates;
	 
	 	(ii)	 	changes in products of, or in
markets served by Dex;
	 
	 	(iii)	 	mergers, acquisitions,
divestitures or reorganizations of Dex;
	 
	 	(iv)	 	changes in the method of
service delivery;
	 
	 	(v)	 	changes in laws and/or the
applicable regulatory environment applicable to Dex;
	 
	 	(vi)	 	changes in Dex market
priorities;
	 
	 	(vii)	 	elimination or addition of all
or a part of a business unit (for example, the
shutting down of an entire business unit in a
region);
	 
	 	(viii)	 	elimination or addition of a specific service;
	 
	 	(ix)	 	other significant change in
Dex’s business operations; and
	 
	 	(x)	 	technological breakthroughs
that will dramatically reduce the cost of the Data
Center and Managed Services or the amount of
resources required to support the systems or services
supported by the Vendor which breakthroughs are
outside the normal evolution of technology
experienced by the information technology industry,
was not generally available as of the Amendment 4
Effective Date, is judged by the Parties to be
reasonably reliable and relevant and can be
technically substituted or added by Vendor to the
Data Center and Managed Services.

	 	(b)	 	Major Event. As used in this
Agreement, a “Major Event” means an Extraordinary Event
that would, by the application of Sections 11.13(c)(i)
and (ii), result, in the aggregate, in the New Scope of
Services being greater or less than the Original Scope
of Services by more than fifteen percent (15%).
	 
	 	(c)	 	Consequence of Major Event.

	 	(i)	 	If a Major Event occurs, the
Parties shall enter into good faith negotiations in
order to address the consequences of the Major Event,
including any efficiencies, economies,

Page 25 of 31

 

	 	 	 	savings and resource utilization reductions
reasonably expected from such Extraordinary Event.
Dex and Vendor will agree on a procedure for
reviewing such Major Event, which shall be similar
to the procedures utilized for implementation of
New Services, including an analysis of the impact
of the Major Event on the costs, quality,
methodology, technology, etc. of the Data Center
and Managed Services. Once the Parties have agreed
on the impact (if any), the consequences thereof
shall be implemented as a New Services Order or an
amendment to the Agreement, and shall provide that,
the Charges shall be equitably adjusted as the
Parties shall agree, to reflect the benefit of such
efficiencies, economies, savings and resource
utilization reductions and/or additional costs of
performing such Services.

	 	(ii)	 	In order to establish whether
an Extraordinary Event amounts to a Major Event, the
New Scope of Services shall initially be estimated
prior to or as soon as possible following the
occurrence of the Extraordinary Event, either (i)
based on Vendor’s actual costs of performance of the
Original Scope of Services provided and Vendor’s
actual costs of performance (or savings from
non-performance) of the Data Center and Managed
Services resulting from such Extraordinary Event, or
(ii) if such estimation is not feasible (as the
Parties’ shall in good faith agree), then based on
the Parties’ good faith estimations, plus an
appropriate accounting for any direct investment
requirements or savings associated with such
Extraordinary Event. At the end of the twelve (12)
month period following the occurrence of the
Extraordinary Event, the Parties shall calculate the
actual increase/decrease in Vendor’s Costs involved
in the performance of the Data Center and Managed
Services. The Parties shall then adjust the
adjustment to the Charges due to such Major Event
from such date forward and shall also settle past
accounts to reflect the accurate, agreed upon
adjustment to Charges. Vendor shall provide Dex such
justification and substantiation for any of such
costs and/or savings as Dex may reasonably require.

Page 26 of 31

 

	 	2.35	 	A new Section 13.4 (File Access) is added to the Agreement,
which reads as follows:
	 
	 	13.4	 	File Access

	 	 	 	The Dex Contract Manager or other Dex Authorized
Representative shall have unrestricted access to, and the
right to review and retain the entirety of, all computer or
other files containing Dex Data. At no time shall any of
such files or other materials or information be stored or
held in a form or manner not readily accessible to Dex.
Vendor shall ensure that at all times the Dex Contract
Manager or other Dex Authorized Representative shall be
provided or have access to all passwords, codes, comments,
keys, documentation and the locations of any such files and
other materials promptly upon the request of Dex, including
Equipment and Software keys and such information as to
format, encryption (if any) and any other specification or
information necessary for Dex to retrieve, read, revise
and/or maintain such files and information. Upon the
request of the Dex Contract Manager, Vendor shall confirm
that, to the best of its knowledge, all files and other
information provided to Dex are complete and that no
material element, amount, or other fraction of such files
or other information to which Dex may request access or
review has been deleted, withheld, disguised or encoded in
a manner inconsistent with the purpose and intent of
providing full and complete access to Dex as contemplated
by this Agreement. For purposes of clarification, under no
circumstances may Dex Data be withheld by Vendor or access
thereto be limited by Vendor pending the resolution of any
dispute.

	 	2.36	 	Section 15.3(c) (Efficiency and Cost Effectiveness; Systems
Optimization) is amended to add “and any other Equipment or Software
used by Vendor or its Affiliates or Subcontractors to provide the
Data Center and Managed Services ” immediately following the first
reference to “Amdocs Customized Software” therein.
	 
	 	2.37	 	Section 15.9 (Malicious Code) is amended to replace the
second (and final) sentence of the provision to read in its entirety
as follows:
	 
	 	 	 	Without limiting Vendor’s other obligations under this Agreement,
in the event Malicious Code is found in the Amdocs Customized
Software or in any Equipment, Software or systems managed or
supported by Vendor or used by Vendor or its Affiliates or
Subcontractors to provide the Data Center and Managed Services,
Vendor shall exercise all commercially reasonable efforts at no
additional charge to Dex, to eliminate, and reduce the effects of,
such Malicious Code and, if the Malicious Code causes a loss of
operational efficiency or loss of data, to mitigate such losses
and restore such data with generally accepted data restoration
techniques

Page 27 of 31

 

	 	2.38	 	Section 15.10 (Disabling Code) is amended to add the
following to the end of the second sentence thereof:
	 
	 	 	 	; provided, however, and without limiting such obligation, Vendor
further represents, warrants and covenants that, with respect to
any disabling code that may nonetheless be part of any such third
party software, Vendor shall not invoke or cause to be invoked
such Disabling Code at any time, including upon expiration or
termination of this Agreement for any reason, without Dex’s prior
written consent.

	 	2.39	 	Section 18.3(a) (Limitation of Liability; Limitations of
Liability) is amended to replace the second (and final) sentence of
the provision to read as follows:
	 
	 	 	 	Additionally, except as provided in this Section 18.3, the
liability of either Party, for claims asserted by the other Party
under or in connection with this Agreement, regardless of the form
of the action or the theory of recovery, shall:

	 	(i)	 	for any individual event, act, occurrence or
omission with respect to Services other than the Data Center
and Managed Services, be limited to Two Million Dollars
($2,000,000);
	 
	 	(ii)	 	with respect to the Data Center and Managed
Services, be limited in the aggregate to Seven Million
Dollars ($7,000,000); and
	 
	 	(iii)	 	in the aggregate (with respect to all
Services), including liability to which Section 18.3(a)(i) or
Section 18.3(a)(ii) apply, be limited to Fourteen Million
Dollars ($14,000,000).

	 	2.40	 	Section 20.3(a) (Termination for Convenience; Termination for
Convenience of the Agreement) is amended to read in its entirety as
follows:
	 
	 	 	 	Termination for Convenience of the Agreement. Dex may terminate
the Term with respect to (i) all of the Outsourcing Services,
and/or (ii) all of the Data Center and Managed Services, for
convenience and without cause at any time by giving Vendor at
least one hundred eighty (180) days prior written notice
designating the termination date and Services to be terminated;
provided, however, such notice period shall be reduced to one
hundred twenty (120) days (A) prior to completion of the
Implementation and Transition Period, and (B) with respect to the
Outsourcing Services after February 28, 2008. In the event of
such a termination for convenience, Dex shall pay to Vendor a
Termination Charge consisting of (i) the applicable “Termination
Fee Charge” designated in Section 7 of Schedule J (if any), and
(ii) in the case of termination of the Outsourcing Services, if
Dex elects to retain the License, the “Termination License Fee

Page 28 of 31

 

	 	 	 	Charge” designated in Section 7 of Schedule J, calculated in each
case and payable as of the end of the Term. In the event that a
purported termination for cause by Dex under Section 20.1,
including the situation in which an arbitration pursuant to
Section 20.1(c) determines that grounds for termination did not
exist pursuant to Section 20.1(a) or that a material default which
existed was cured during the applicable cure period, then such
termination by Dex shall be deemed to be a termination for
convenience under this Section 20.3.

	3.	 	Data Center and Managed Services

	 	3.1	 	As described above, a new Section D (Data Center and Managed
Services), is added to Schedule E to the Agreement and incorporated
therein for all purposes. The Data Center and Managed Services are
further described on replacement Attachment E-1 (Roles and
Responsibility Matrix) and Schedule E.1 (Financial and Operational
Responsibility Matrix), which are attached hereto as Annexes 3 and
4, respectively.
	 
	 	3.2	 	Amdocs shall provide to Dex the Data Center and Managed
Services in accordance with the Agreement, as amended by this
Amendment.

	4.	 	Restated Schedules

     The following Schedules are restated in their entirety:

	 	4.1	 	Attachment E-1 (Roles and Responsibility Matrix) to Schedule
E to the Agreement is hereby replaced in its entirety by the
replacement Attachment E-1 (Roles and Responsibility Matrix: Part A
 — Amdocs Customized Software Roles and Responsibility Matrix and
Part B — Non-Amdocs Customized Software Roles and Responsibility
Matrix) to Schedule E that is attached to this Amendment as Annex 3.
	 
	 	4.2	 	Schedule O.1 (Dex Facilities) is hereby replaced in its
entirety by the restated Schedule O.1, attached to this Amendment as
Annex 10.

	5.	 	Amended Schedules

     The following Schedules are amended:

	 	5.1	 	Schedule C (Key Vendor Positions and Personnel) is amended in
accordance with Annex 1 to this Amendment.
	 
	 	5.2	 	Schedule E (Statement of Work) is amended in accordance with
Annex 2 to this Amendment.

Page 29 of 31

 

	 	5.3	 	Schedule E.1 (Financial and Operational Responsibility
Matrix) is amended in accordance with Annex 4 to this Amendment.
	 
	 	5.4	 	Schedule G (Service Levels and Service Level Credits) is
amended as follows:
	 
	 	 	 	The definition “Monthly Charges” contained in Section 1.4 thereof
is amended to replace the reference to “Outsourcing Services” with
“Outsourcing Services and Data Center and Managed Services”.
	 
	 	5.5	 	Attachments SLA-1 (Critical Service Level Matrix) and SLA-2
(Key Measurements Matrix) and SLA-3 (Approved Measurement Tools and
Methodologies) to Schedule G to the Agreement are amended in
accordance with Annex 7 to this Agreement.
	 
	 	5.6	 	Schedule J (Charges) is amended in accordance with Annex 9 to
this Amendment.
	 
	 	5.7	 	Schedule R (Reports) is amended in accordance with Annex 14
to this Amendment.

	6.	 	New Schedules

	 	6.1	 	A new schedule, Schedule E.2 (Managed Third Parties) is
adopted and is attached as Annex 5 to this Amendment.
	 
	 	6.2	 	A new schedule, Schedule E.3 (Pass-Through Expenses) is
adopted and is attached as Annex 6 to this Amendment.
	 
	 	6.3	 	A new schedule, Schedule H (Amendment 4 Transition Plan) is
adopted and is attached as Annex 8 to this Amendment.
	 
	 	6.4	 	A new schedule, Schedule O.3 (Data Center and Managed
Services Software and Equipment: Part I — Dex Applications; Part II
 — Dex Hardware; Part III — Dex Software Inventory) is adopted and is
attached as Annex 12 to this Amendment.
	 
	 	6.5	 	A new schedule, Schedule O.5 (Additional Dex Provided
Equipment) is adopted and is attached as Annex 13 to this Amendment.

	7.	 	Condition Precedent.

	 	 	The Parties acknowledge and agree that the effectiveness of this
Amendment is subject, as a condition precedent, to the express approval
by Dex’s board of directors of this Amendment on or prior to August 31,
2004 and unless and until

Page 30 of 31

 

	 	 	such approval has been obtained, this Amendment shall be of no force and
effect; provided, however, that Dex shall promptly provide Vendor notice
upon such approval.

     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
by their respective duly authorized representatives as of the dates specified
below.

	 	 	 
	Dex Media, Inc.

	 	Amdocs, Inc.
	By:                                             

	 	By:                                            
	Name:                                         

	 	Name:                                        
	Title:                                         

	 	Title:                                        
	Date:                                        

	 	Date:                                        

Page 31 of 31Exhibit 4.1

 

	
  COMMON STOCK

  	
   

  	
  COMMON
  STOCK

  
	
  NUMBER

  	
   

  	
  SHARES

  
	
  N

  	
   

  	
   

  

 

INCORPORATED UNDER THE
LAWS OF THE STATE OF DELAWARE

 

[logo]

 

NESS TECHNOLOGIES, INC.

 

SEE
REVERSE FOR CERTAIN DEFINITIONS

CUSIP
64104X 10 8

This is to certify that

 

 

is the owner of

 

FULLY
PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK, PAR VALUE $.01, OF

 

NESS TECHNOLOGIES, INC.

 

transferable on the
books of the Corporation in person or by duly authorized attorney upon
surrender of this Certificate properly endorsed. This Certificate is not valid
unless countersigned and registered by the Transfer Agent and Registrar.

 

Witness
the facsimile seal of the Corporation and the facsimile signatures of its duly
authorized officers.

 

Dated:

 

 

	
  /s/ Raviv Zoller

  	
   

  	
   

  	
   

  	
  /s/
  Ilan Rotem

  
	
  PRESIDENT

  	
   

  	
  [seal]

  	
   

  	
  SECRETARY

  

 

 

COUNTERSIGNED AND
REGISTERED:

AMERICAN STOCK TRANSFER & TRUST COMPANY

TRANSFER
AGENT AND REGISTRAR

 

	
  BY

  	
   

  
	
   

  	
  AUTHORIZED
  SIGNATURE

  

 

 

 

NESS TECHNOLOGIES, INC.

 

THE
CORPORATION WILL FURNISH, WITHOUT CHARGE, TO EACH STOCKHOLDER WHO SO REQUESTS A
FULL STATEMENT OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE,
PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR
SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH
PREFERENCES AND/OR RIGHTS.

 

The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

	
  TEN
  COM

  	
   

  	
  —as
  tenants in common

  	
   

  	
  UNIF
  GIFT MIN ACT - 

  	
   

  	
   

  	
   

  	
  Custodian

  	
   

  	
   

  
	
  TEN
  ENT

  	
   

  	
  —as
  tenants by the entireties

  	
   

  	
   

  	
   

  	
  (Cust)

  	
   

  	
   

  	
   

  	
  (Minor)

  
	
  JT TEN

  	
   

  	
  —as joint tenants with right of

  	
   

  	
   

  	
   

  	
  under Uniform Gifts to Minors

  
	
   

  	
   

  	
  survivorship and not as tenants

  	
   

  	
   

  	
   

  	
  Act

  	
   

  	
   

  
	
   

  	
   

  	
  in
  common

  	
   

  	
   

  	
   

  	
   

  	
  (State)

  	
   

  
															

 

Additional
abbreviations may also be used though not in the above list.

 

For
value received, ______________________ hereby sell(s), assign(s) and
transfer(s) unto

 

PLEASE
INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

 

	
   

  
	
  PLEASE
  PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING ZIP CODE OF ASSIGNEE

  
	
  

  
	
  

  
	
  

  
	
   

  
	
   

  	
   

  	
  Shares

  
	
  of the stock
  represented by the within Certificate, and do hereby irrevocably constitute
  and appoint 

  
	
  

  
	
  Attorney to transfer
  the said stock on the books of the within-named Corporation with full power
  of substitution in the premises.

  

 

	
  Dated

  	
   

  

 

	
   

  	
   

  	
   

  
	
  NOTICE:

  	
   

  	
  THE SIGNATURE TO THIS
  ASSIGNMENT MUST CORRESPOND WITH 
  THE  NAME AS WRITTEN UPON THE
  FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR
  ENLARGEMENT, OR ANY CHANGE WHATEVER.

  

 

 

	
  Signature(s)
  Guaranteed:

  	
   

  
	
  

  	
   

  
	
  THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE
  

  GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND

  LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN

  AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),

  PURSUANT TO S.E.C. RULE 17Ad-15.

  	
   

  

 

 

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