Document:

Exhibit 10.13

 

Registry-Registrar Agreement

 

Note:   The notice period in
Section 3.3 shall be ninety (90) days only if a notice period for
implementation of material changes to the Registry-Registrar Protocol,
Application Program Interfaces, or reference client software applies to all
unsponsored TLDs under Registry Agreement with ICANN.  Otherwise, the notice period of Section 3.3
shall be sixty (60) days.

 

 

REGISTRY-REGISTRAR
AGREEMENT

 

This Registry-Registrar Agreement (the “Agreement”) is dated as of October
4, 2001 (“Effective Date”) by and between VeriSign, Inc., a Delaware
corporation, with a place of business located at 21345 Ridgetop Circle, Dulles,
  , Virginia 20166 (“VGRS”), and Tucows
Inc., a Pennsylvania corporation, with its principal place of business located
at 96 Mowat Ave., Toronto, Ont (“Registrar”).
VeriSign and Registrar may be referred to individually as a “Party” and
collectively as the “Parties.”

 

WHEREAS, multiple registrars provide Internet domain name registration
services within the .com top-level domain wherein VGRS operates and maintains
certain TLD servers and zone files;

 

WHEREAS, Registrar wishes to register second-level domain names in the
multiple registrar system for the .com TLD.

 

NOW, THEREFORE, for and in consideration of the mutual promises,
benefits and covenants contained herein and for other good and valuable
consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged, VGRS and Registrar, intending to be legally bound, hereby agree
as follows:

 

1.  definitions

 

1.1. 
“DNS” refers to
the Internet domain name system.

 

1.2. 
“ICANN” refers
to the Internet Corporation for Assigned Names and Numbers.

 

1.3. 
“IP” means
Internet Protocol.

 

1.4.  “Registered
Name” refers to a domain name within the
domain of the Registry TLD, whether consisting of two or more (e.g.,
john.smith.name) levels, about which VGRS or an affiliate engaged in
providing registry services maintains data in a registry database, arranges for such maintenance, or derives revenue from
such maintenance. A name in a registry
database may be a Registered Name even though it does not appear in a TLD zone file (e.g., a registered but
inactive name).

 

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1.5.  “Registry
TLD” means the .com TLD.

 

1.6. 
The “System”
refers to the multiple registrar system operated by VGRS for registration of Registered Names in the Registry
TLD.

 

1.7. 
A “TLD” is a
top-level domain of the DNS.

 

1.8. 
The “Licensed
Product” refers to the RRP, APIs, and
software, collectively.

 

2.  OBLIGATIONS OF THE PARTIES

 

2.1. 
System Operation and Access.  Throughout
the Term of this Agreement, VGRS shall operate
the System and provide Registrar
with access to the System enabling Registrar
to transmit domain name registration information for the Registry
TLD to the System according to a
protocol developed by VGRS and known as
the Registry Registrar Protocol (“RRP”).

 

2.2.  Distribution
of RRP, APIs and
Software. No later than three business days after the Effective
Date of this Agreement, VGRS shall provide to Registrar (i) full documentation
of the RRP, (ii) “C” and “Java” application program interfaces (“APIs”) to the
RRP with documentation, and (iii) reference client software (“Software”) that
will enable Registrar to develop its system to register second-level domain
names through the System for the Registry TLD. If VGRS elects to modify or
upgrade the APIs and/or RRP, VGRS shall provide updated APIs to the RRP with
documentation and updated Software to Registrar promptly as such updates become
available.

 

2.3.  Registrar
Responsibility for Customer Support. Registrar shall be
responsible for providing customer service (including domain name record
support), billing and technical support, and customer interface to accept customer
(the “Registered Name holder”) orders.

 

2.4.  Data
Submission Requirements. As part of its registration of
all Registered Name registrations in the Registry TLD during the Term of this
Agreement, Registrar shall submit the following data elements using the RRP
concerning Registered Name registrations it processes:

 

2.4.1.  The Registered Name being
registered;

 

2.4.2.  The IP addresses of the
primary nameserver and secondary nameserver(s) for the Registered Name;

 

2.4.3.  The corresponding host
names of those nameservers;

 

2.4.4.  Unless automatically
generated by the registry system, the identity of the registrar;

 

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2.4.5.  Unless automatically generated by the registry system,
the expiration date of the registration; and

 

2.4.6.  Other data required as a result of further development of the registry system by the Registry.

 

2.5.  License.
Registrar grants VGRS as Registry a non-exclusive non-transferable limited license
to the data elements consisting of the Registered Name, the IP addresses of nameservers,
and the identity of the registering registrar for propagation of and the provision
of authorized access to the TLD zone files.

 

2.6.  Registrar’s
Registration Agreement and Domain Name Dispute Policy. Registrar
shall have developed and employ in its domain name registration business an
electronic or paper registration agreement, including a domain name dispute
policy, a copy of which is attached to this Agreement as Exhibit A (which may
be amended from time to time by Registrar, provided a copy is furnished to VGRS
three (3) business days in advance of any such amendment), to be entered into
by Registrar with each Registered Name holder as a condition of
registration.  Registrar shall include
terms in its agreement with each Registered Name holder that are consistent
with Registrar’s duties to VGRS hereunder.

 

2.7. 
Secure Connection.  Registrar agrees to develop and
employ in its domain name registration business all necessary technology
and restrictions to ensure that its connection to the System is secure. All
data exchanged between Registrar’s system and the System shall be protected to
avoid unintended disclosure of information. Each RRP session shall be
authenticated and encrypted using two-way secure socket layer (“SSL”) protocol.
Registrar agrees to authenticate every RRP client connection with the System
using both an X.509 server certificate issued by a commercial Certification
Authority identified by the Registry and its Registrar password, which it shall
disclose only to its employees with a need to know. Registrar agrees to notify
Registry within four hours of learning that its Registrar password has been
compromised in any way or if its server certificate has been revoked by the
issuing Certification Authority or compromised in any way.

 

2.8. 
Domain Name Lookup Capability. Registrar agrees to employ in its domain
name registration business VGRS’s
registry domain name lookup
capability to determine if a requested domain name is available or currently
unavailable for registration.

 

2.9. 
Transfer of Sponsorship of Registrations. Registrar agrees to implement transfers
of Registered Name registrations from
another registrar to Registrar
and vice versa pursuant to the
Policy on Transfer of Sponsorship of Registrations Between Registrars appended hereto as Exhibit B.

 

2.10. 
Time.
Registrar agrees that in the
event of any dispute concerning the
time of the entry of a domain name registration into the registry database, the time shown in the VGRS records shall control.

 

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2.11.  Compliance with Terms and Conditions.
Registrar agrees to comply with all other reasonable terms or conditions established
from time to time, to assure sound operation of the System, by VGRS in a non-arbitrary
manner and applicable to all registrars, including affiliates of VGRS, and consistent
with VGRS’s Cooperative Agreement with the United States Government or VGRS’s Registry
Agreement with ICANN, as applicable, upon VGRS’s notification to Registrar of
the establishment of those terms and conditions.

 

2.12.  Resolution of Technical Problems. Registrar agrees to employ necessary employees,
contractors, or agents with sufficient technical training and experience to respond
to and fix all technical problems concerning the use of the RRP and the APIs in
conjunction with Registrar’s systems. Registrar agrees that in the event of
significant degradation of the System or other emergency, VGRS may, in its sole
discretion, temporarily suspend access to the System. Such temporary
suspensions shall be applied in a nonarbitrary manner and shall apply fairly to
any registrar similarly situated, including affiliates of VGRS.

 

2.13.  Surety Instrument. During the Initial Term and any Renewal Terms,
Registrar shall have in place a performance bond, letter of credit or
equivalent instrument (the “Surety Instrument”) from a surety acceptable to
VGRS, in the amount of $100,000 U.S. dollars. (A single such Surety Instrument
shall satisfy this obligation and Registrar’s obligations under similar
provisions of other Registry-Registrar Agreements between Registrar and VGRS.)
The terms of the Surety Instrument shall indemnify and hold harmless VGRS and
its employees, directors, officers, representatives, agents and affiliates from
all costs and damages (including reasonable attorneys’ fees) which it may
suffer by reason of Registrar’s failure to indemnify VGRS as provided in Section 6.16
by making payment(s) up to the full amount of the bond within ten (10) days
of VGRS’s having notified the surety of its claim(s) of damages, having
identified the basis for any such claim. VGRS shall not be entitled to payment
under the Surety Instrument until such time as it has certified that it has
incurred expenses for which it is entitled to reimbursement in accordance with
the provisions of Section 6.16 of this Agreement.

 

2.14.  Prohibited Domain Name Registrations. Registrar agrees to comply with the policies
of VGRS that will be applicable to all registrars and that will prohibit the registration
of certain domain names in the Registry TLD which are not allowed to be registered
by statute or regulation.

 

2.15.  Indemnification Required of Registered
Name Holders.
Registrar shall require each Registered Name holder to indemnify, defend and
hold harmless VGRS, and its directors, officers, employees, agents, and
affiliates from and against any and all claims, damages, liabilities, costs and
expenses, including reasonable legal fees and expenses arising out of or
relating to the Registered Name holder’s domain name registration.

 

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3.  LICENSE

 

3.1.  License Grant. Subject to the terms and conditions of this Agreement,
VGRS hereby grants Registrar and Registrar accepts a non-exclusive, non-transferable,
worldwide limited License to use for the Term and purposes of this Agreement
the RRP, APIs and Software, as well as updates and redesigns thereof, to
provide domain name registration services in the Registry TLD only and for no
other purpose. The RRP, APIs and Software, as well as updates and redesigns thereof, will enable Registrar to
register domain names in the Registry TLD with the Registry on behalf of its
Registered Name holders. Registrar, using the RRP, APIs and Software, as well
as updates and redesigns thereof, will be able to invoke the following
operations on the System: (i) check the availability of a domain name,
(ii) register a domain name, (iii) re-register a domain name, (iv) cancel the
registration of a domain name it has registered, (v) update the nameservers of
a domain name, (vi) transfer a domain name from another registrar to
itself with proper authorization, (vii) query a domain name registration record,
(viii) register a nameserver, (ix) update the IP addresses of a name-server,
(x) delete a nameserver, (xi) query a nameserver, and (xii) establish and end
an authenticated session.

 

3.2.  Limitations on Use. Notwithstanding any other provisions in this
Agreement, except with the written consent of VGRS, Registrar shall not: (i) sublicensee
the RRP, APIs or Software or otherwise permit any use of the RRP, APIs or
Software by or for the benefit of any party other than Registrar, (ii) publish,
distribute or permit disclosure of the RRP, APIs or Software other than to
employees, contractors, and agents of Registrar for use in Registrar’s domain
name registration business, (iii) decompile, reverse engineer, copy or
re-engineer the RRP, APIs or Software for any unauthorized purpose, or (iv) use
or permit use of the RRP, APIs or Software in violation of any federal, state
or local rule, regulation or law, or for any unlawful purpose.

 

Registrar
agrees to employ the necessary measures to prevent its access to the System
granted hereunder from being used to (i) allow, enable, or otherwise support the
transmission by e-mail, telephone, or facsimile of mass unsolicited, commercial
advertising or solicitations to entities other than Registrar’s customers; or (ii) enable
high volume, automated, electronic processes that send queries or data to the systems
of, Registry Operator or any ICANN-Accredited Registrar, except as reasonably
necessary to register domain names or modify existing registrations.

 

3.3.  Changes to Licensed Materials. VGRS may from time to time maker modifications
to the RRP, APIs or Software licensed hereunder that will enhance functionality
or otherwise improve the System. VGRS will provide Registrar with at least
ninety (90) days notice prior to the implementation of any material changes to
the RRP, APIs or software licensed hereunder.

 

4.  SUPPORT SERVICES

 

4.1.  Engineering Support. VGRS agrees to provide Registrar with reasonable
engineering telephone support (between the hours of 9 a.m. to 5 p.m. local Herndon,

 

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Virginia
time or at such other times as may be mutually agreed upon) to address
engineering issues arising in connection with Registrar’s use of the System.

 

4.2.  Customer Service Support. During the Term of this Agreement, VGRS will
provide reasonable telephone and e-mail customer service support to Registrar,
not Registered Name holders or prospective customers of Registrar, for
non-technical issues solely relating to the System and its operation. VGRS will
provide Registrar with a telephone number and e-mail address for such support
during implementation of the RRP, APIs and Software. First-level telephone
support will be available on a 7-day/24-hour basis. VGRS will provide a
web-based customer service capability in the future and such web- based support
will become the primary method of customer service support to Registrar at such
time.

 

5.  FEES

 

5.1.  Registration Fees.

 

(a)  Registrar agrees to pay VGRS the
non-refundable amounts of US$ 6 for each annual increment of an initial domain name
registration and US$ 6 for each annual increment of a domain name
re-registration (collectively, the “Registration Fees”) registered by Registrar
through the System.

 

(b)  VGRS reserves the right to adjust the
Registration Fees prospectively upon thirty (30) days prior notice to Registrar,
provided that such adjustments are consistent with VGRS’s Cooperative Agreement
with the United States Government or its Registry Agreement with ICANN, as applicable,
and are applicable to all registrars in the Registry TLD. VGRS will invoice Registrar
monthly in arrears for each month’s Registration Fees. All Registration Fees
are due immediately upon receipt of VGRS’s invoice pursuant to a letter of
credit, deposit account, or other acceptable credit terms agreed by the
Parties.

 

5.2.  Change in Registrar Sponsoring Domain Name. Registrar may assume sponsorship of an Registered
Name holder’s existing domain name registration from another registrar by
following the policy set forth in Exhibit B to this Agreement.

 

(a)  For each transfer of the sponsorship of a
domain-name registration under Part A of Exhibit B, Registrar agrees
to pay VGRS the renewal registration fee associated with a one-year extension, as
set forth above. The losing registrar’s Registration Fees will not be refunded
as a result of any such transfer.

 

(b)  For a transfer approved by ICANN under Part B of Exhibit B, Registrar agrees to
pay VGRS US$ 0 (for transfers of 50,000 names or fewer) or US$ 50,000 (for
transfers of more than 50,000 names).

 

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Fees under this Section 5.2 shall be due immediately upon receipt of
VGRS’s invoice pursuant to a letter of credit, deposit account, or other
acceptable credit terms agreed by the Parties.

 

5.3.  Pro-Rata
Charges for ICANN Fees. 
Registrar agrees to pay to VGRS, within ten (10) days of VGRS’s invoice,
a portion of any variable registry-level fees paid by VGRS to ICANN, pro-rated
among all registrars sponsoring registrations in the Registry TLD based on
their relative numbers of domain-name registrations sponsored.

 

5.4.  Non-Payment
of Fees.  Timely
payment of fees owing under this Section 5 is a material condition of
performance under this Agreement.  In the
event that Registrar fails to pay its fees within five (5) days of the date
when due, VGRS may stop accepting new registrations and/or delete the domain
names associated with invoices not paid in full from the Registry database and
give written notice of termination of this Agreement pursuant to Section 6.1(b)
below.

 

6.  MISCELLANEOUS

 

6.1.  Term of Agreement and Termination.

 

(a)  Term of
the Agreement.  The duties and
obligations of the Parties under this Agreement shall apply from the Effective
Date through and including the last day of the calendar month sixty (60) months
from the Effective Date (the “Initial Term”). Upon conclusion of the Initial
Term, all provisions of this Agreement will automatically renew for successive five
(5) year renewal periods until the Agreement has been terminated as provided
herein.  Registrar elects not to renew,
or VGRS ceases to operate the registry for the Registry TLD.  In the event that revisions to VGRS’s
Registry-Registrar Agreement are approved or adopted by the U.S. Department of
Commerce, or ICANN, as appropriate, Registrar will execute an amendment
substituting the revised agreement in place of this Agreement, or Registrar
may, at its option exercised within fifteen (15) days, terminate this Agreement
immediately by giving written notice to VGRS.

 

(b)  Termination
For Cause.  In the event that either
Party materially breaches any term of this Agreement including any of its
representations and warranties hereunder and such breach is not substantially
cured within thirty (30) calendar days after written notice thereof is given by
the other Party, then the non-breaching Party may, by giving written notice
thereof to the other Party, terminate this Agreement as of the date specified
in such notice of termination.

 

(c)  Termination
at Option of Registrar. Registrar may terminate this Agreement at any time
by giving VGRS thirty (30) days notice of termination.

 

(d)  Termination
Upon Loss of Registrar’s Accreditation. 
This Agreement shall terminate in the event Registrar’s accreditation
for the Registry TLD by ICANN, or its successor, is terminated or expires
without renewal.

 

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(e)  Termination
in the Event that Successor Registry Operator is Named.  This Agreement shall terminate in the event
that the U.S. Department of Commerce
or ICANN, as appropriate, designates another entity to operate the registry for
the Registry TLD.

 

(f)  Termination
in the Event of Bankruptcy.  Either
Party may terminate this Agreement if the other Party is adjudged insolvent or
bankrupt, or if proceedings are instituted by or against a Party seeking
relief, reorganization or arrangement under any laws relating to insolvency, or
seeking any assignment for the benefit of creditors, or seeking the appointment
of a receiver, liquidator or trustee of a Party’s property or assets or the
liquidation, dissolution or winding up of a Party’s business.

 

(g)  Effect
of Termination.  Upon expiration or
termination of this Agreement, VGRS will, to the extent it has the authority to
do so, complete the registration of all domain names processed by Registrar
prior to the date of such expiration or termination, provided that Registrar’s
payments to VGRS for Registration Fees are current and timely. Immediately upon
any expiration or termination of this Agreement, Registrar shall (i) transfer
its sponsorship of Registered Name registrations to another licensed
registrar(s) of the Registry, in compliance with Exhibit B, Part B, or any other procedures
established or approved by the U.S. Department of Commerce or ICANN, as
appropriate, and (ii) either return to VGRS or certify to VGRS the destruction
of all data, software and documentation it has received under this Agreement.

 

(h)  Survival.  In the event of termination of this
Agreement, the following shall survive: (i) Sections 2.5, 2.6, 6.1(g), 6.2,
6.6, 6.7, 6.10, 6.12, 6.13, 6.14, and 6.16; (ii) the Registered Name holder’s
obligations to indemnify, defend, and hold harmless VGRS, as stated in Section
2.15; (iii) the surety’s obligations under the Surety Instrument described in
Section 2.13 with respect to matters arising during the term of this Agreement;
and (iv) Registrar’s payment obligations as set forth in Section 5 with respect
to fees incurred during the term of this Agreement. Neither Party shall be
liable to the other for damages of any sort resulting solely from terminating
this Agreement in accordance with its terms but each Party shall be liable for
any damage arising from any breach by it of this Agreement.

 

6.2.  No
Third Party Beneficiaries; Relationship of The Parties.  This Agreement does not provide and shall not
be construed to provide third parties (i.e., non-parties to this Agreement),
including any Registered Name holder, with any remedy, claim, cause of action
or privilege. Nothing in this Agreement shall be construed as creating an
employer-employee or agency relationship, a partnership or a joint venture
between the Parties.

 

6.3.  Force
Majeure.  Neither
Party shall be responsible for any failure to perform any obligation or provide
service hereunder because of any Act of God, strike, work

 

8

 

stoppage, governmental acts or directives, war, riot or civil
commotion, equipment or facilities shortages which are being experienced by providers
of telecommunications services generally, or other similar force beyond such
Party’s reasonable control.

 

6.4.  Further
Assurances. Each Party hereto shall execute and, or cause
to be delivered to each other Party hereto such instruments and other documents,
and shall take such other actions, as such other Party may reasonably request
for the purpose of carrying out or evidencing any of the transactions
contemplated by this Agreement.

 

6.5.  Amendment
in Writing. Any amendment or supplement to this Agreement
shall be in writing and duly executed by both Parties.

 

6.6.  Attorneys’
Fees. If any legal action or other legal proceeding
(including arbitration) relating to the performance under this Agreement or the
enforcement of any provision of this Agreement is brought against either Party hereto,
the prevailing Party shall be entitled to recover reasonable attorneys’ fees,
costs and disbursements (in addition to any other relief to which the
prevailing Party may be entitled).

 

6.7.  Dispute
Resolution; Choice of Law; Venue. The Parties shall
attempt to resolve any disputes between them prior to resorting to litigation.
This Agreement is to be construed in accordance with and governed by the
internal laws of the Commonwealth of Virginia, United States of America without
giving effect to any choice of law rule that would cause the application of the
laws of any jurisdiction other than the internal laws of the Commonwealth of
Virginia to the rights and duties of the Parties.  Any legal action or other legal proceeding
relating to this Agreement or the enforcement of any provision of this
Agreement shall be brought or otherwise commenced in any state or federal court
located in the eastern district of the Commonwealth of Virginia. Each Party to
this Agreement expressly and irrevocably consents and submits to the
jurisdiction and venue of each state and federal court located in the eastern
district of the Commonwealth of Virginia (and each appellate court located in
the Commonwealth of Virginia) in connection with any such legal proceeding.

 

6.8.  Notices. Any notice
or other communication required or permitted to be delivered to any Party under
this Agreement shall be in writing and shall be deemed properly delivered,
given and received when delivered (by hand, by registered mail, by courier or
express delivery service, by e-mail or by telecopier during business hours) to
the address or telecopier number set forth beneath the name of such Party
below, unless party has given a notice of a change of address in writing:

 

if to Registrar

 

Tucows Inc.

96 Mowat Ave

Toronto, Ont M6K 3M1

Attention: Ross W. Rader

Telephone (416) 538-5492

Fax (416) 531-5584

 

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with a copy to:

 

Brenda Lazare, General Counsel

Tucows Inc.

96 Mowat Ave.

Toronto, Ont M6K 3M1

Telephone (416) 538-5488

Fax (416) 531-1257

 

if to VGRS:

 

General Counsel

VeriSign, Inc.

1350 Charleston Road

Mountain View, California 94043

Telephone: 1/650/961/7500

Facsimile: 1/650/961/8853; and

 

Business Affairs Office

VeriSign Registry

21345 Ridgetop Circle 

Dulles, Virginia 20166

Telephone: 1/703/948/3200

Facsimile: 1/703/421/2129; and

 

Deputy General Counsel

VeriSign, Inc.

505 Huntmar Park Drive

Herndon, Virginia 20170

Telephone: 1/703/742/0400

Facsimile: 1/703/742/7916

 

6.9.  Assignment/Sublicense.
Except as otherwise expressly provided herein, the provisions of this Agreement
shall inure to the benefit of and be binding upon, the successors and permitted
assigns of the Parties hereto. Registrar shall not assign, sublicense or
transfer its rights or obligations under this Agreement to any third person
without the prior written consent of VGRS.

 

6.10.  Use
of Confidential Information. The Parties’ use and
disclosure of Confidential Information disclosed hereunder are subject to the
terms and conditions of the Parties’ Confidentiality Agreement (Exhibit C) that
will be executed contemporaneously with this Agreement. Registrar agrees that
the RRP, APIs and Software are the Confidential Information of VGRS.

 

10

 

6.11. 
Delays or Omissions; Waivers. No failure on the part of either Party
to exercise any power, right, privilege or remedy under this Agreement, and no
delay on the part of either Party in exercising any power, right, privilege or
remedy under this Agreement, shall operate as a waiver of such power, right,
privilege or remedy; and no single or partial exercise or waiver of any such
power, right, privilege or remedy shall preclude any other or further exercise
thereof or of any other power, right, privilege or remedy. No Party shall be
deemed to have waived any claim arising out of this Agreement, or any power,
right, privilege or remedy under this Agreement, unless the waiver of such
claim, power, right, privilege or remedy is expressly set forth in a written
instrument duly executed and delivered on behalf of such Party; and any such
waiver shall not be applicable or have any effect except in the specific
instance in which it is given.

 

6.12. 
Limitation of Liability.  IN NO EVENT WILL VGRS BE LIABLE TO REGISTRAR FOR
ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITlVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES,
OR ANY DAMAGES RESULTING FROM LOSS OF PROFITS, ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT, EVEN IF VGRS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.

 

6.13.  Construction.
The Parties agree that any rule of construction to the effect that ambiguities
are to be resolved against the drafting Party shall not be applied in the
construction or interpretation of this Agreement.

 

6.14.  Intellectual
Property. Subject to Section 2.5 above, each Party will
continue to independently own its intellectual property, including all patents,
trademarks, trade names, service marks, copyrights, trade secrets, proprietary
processes and all other forms of intellectual property.

 

6.15.  Representations
and Warranties

 

(a) Registrar. Registrar represents and
warrants that: (1) it is a corporation duly incorporated, validly existing and in
good standing under the law of the State of Pennsylvania, (2) it has all
requisite corporate power and authority to execute, deliver and perform its
obligations under this Agreement, (3) it is, and during the Term of this
Agreement will continue to be, accredited by ICANN or its successor, pursuant
to an accreditation agreement dated after November 4, 1999, (4) the execution,
performance and delivery of this Agreement has been duly authorized by
Registrar, (5) no further approval, authorization or consent of any
governmental or regulatory authority is required to be obtained or made by
Registrar in order for it to enter into and perform its obligations under this
Agreement, and (6) Registrar’s Surety Instrument provided hereunder is a valid
and enforceable obligation of the surety named on such Surety Instrument.

 

(b) VGRS. VGRS represents and warrants that: (1)
it is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware, (2) it has all requisite corporate
power and authority to execute, deliver

 

11

 

 

and perform its
obligations under this Agreement, (3) the execution, performance and delivery of this Agreement has been
duly authorized by VGRS, and (4) no further approval, authorization or
consent of any governmental or regulatory authority
is required to be obtained or made by VGRS in order for it to enter
into and perform its obligations under
this Agreement.

 

(c) Disclaimer of Warranties. The RRP,
APIs and Software are provided “as-is” and without any warranty of any kind.
VGRS EXPRESSLY DISCLAIMS ALL WARRANTIES AND/OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING,
BUT NOT LIMITED TO, THE IMPLIED
WARRANTIES AND CONDITIONS OF MERCHANTABILITY OR SATISFACTORY QUALITY AND
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT OF THIRD PARTY RIGHTS.
VGRS DOES NOT WARRANT THAT THE FUNCTIONS CONTAINED IN THE RRP, APIs OR SOFTWARE WILL MEET REGISTRAR’S REQUIREMENTS, OR THAT THE
OPERATION OF THE RRP, APIs OR SOFTWARE WILL BE UNINTERRUPTED OR
ERROR-FREE, OR THAT DEFECTS IN THE RRP, APIs OR SOFTWARE WILL BE CORRECTED.
FURTHERMORE, VGRS DOES NOT WARRANT NOR MAKE ANY REPRESENTATIONS REGARDING THE USE OR THE RESULTS OF THE RRP, APIs, SOFTWARE OR RELATED
DOCUMENTATION IN TERMS OF THEIR CORRECTNESS, ACCURACY, RELIABILITY, OR OTHERWISE, SHOULD THE RRP, APIs OR
SOFTWARE PROVE DEFECTIVE, REGISTRAR ASSUMES THE ENTIRE COST OF ALL NECESSARY
SERVICING, REPAIR OR CORRECTION OF REGISTRAR’S OWN SYSTEMS AND SOFTWARE.

 

6.16. Indemnification. Registrar, at its own expense and
within thirty (30) days of
presentation of a demand by VGRS under this paragraph, will indemnify,
defend and hold harmless VGRS
and its employees, directors,
officers, representatives, agents and affiliates, against any claim, suit, action, or other proceeding brought against VGRS or any
affiliate of VGRS based on or arising
from any claim or alleged claim (i) relating
to any product or service of Registrar;
(ii) relating to any agreement,
including Registrar’s dispute policy,
with any Registered Name holder of
Registrar; or (iii) relating to Registrar’s domain name registration business,
including, but not limited to, Registrar’s
advertising, domain name application
process, systems and other processes, fees charged, billing practices and customer service; provided, however, that in any such case: 
(a) VGRS provides Registrar with prompt notice of any such
claim, and (b) upon Registrar’s
written request, VGRS will provide to Registrar all available information and assistance reasonably necessary for Registrar to defend such
claim, provided that Registrar reimburses VGRS for its actual and
reasonable costs. Registrar will not
enter into any settlement or compromise of any such indemnifiable claim without VGRS’s prior written consent, which consent shall not be unreasonably withheld. Registrar will pay any and all costs, damages, and expenses, including, but not limited to, reasonable attorneys’ fees
and costs awarded against or otherwise incurred by VGRS in connection with or arising
from any such indemnifiable claim,
suit, action or proceeding.

 

12

 

6.17.   Entire Agreement; Severability.
This Agreement, which includes Exhibits A, B, and C, constitutes the entire agreement between the Parties concerning
the subject matter hereof and supersedes any prior agreements, representations,
statements, negotiations, understandings, proposals or undertakings, oral or
written, with respect to the subject matter expressly set forth herein. If any
provision of this Agreement shall he held to be illegal, invalid or
unenforceable, each Party agrees that such provision shall be enforced to the
maximum extent permissible so as to effect the intent of the Parties, and the
validity, legality and enforceability of the remaining provisions of this Agreement
shall not in any way be affected or impaired thereby. If necessary to effect the
intent of the Parties, the Parties shall negotiate in good faith to amend this
Agreement to replace the unenforceable language with enforceable language that
reflects such intent as closely as possible.

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date
set forth in the first paragraph hereof

 

	
  VerSign, Inc.

  	
  [Registrar]

  
	
  By:

  	
  /s/ Mark Rippe

  	
   

  	
  By:

  	
  /s/ Ross W. Rader

  	
   

  
	
  Name:

  	
  Mark Rippe

  	
   

  	
  Name:

  	
  Ross W. Rader

  	
   

  
	
  Title:

  	
  Vice President,
  Operations

  	
   

  	
  Title:

  	
  Director
  Innovation/Research

  	
   

  
								

 

13

 

Exhibit A

Registrar’s Dispute Policy

 

[To be supplied from time to time
by Registrar]

 

14

 

Exhibit B

Policy on Transfer of Sponsorship
of Registrations Between Registrars

 

A.  Holder-Authorized
Transfers.

 

Registrar Requirements.

 

The registration agreement between each Registrar and its Registered
Name holder shall include a provision explaining that a Registered Name holder
will be prohibited from changing its Registrar during the first 60 days after
initial registration of the domain name with the Registrar. Beginning on the
61st day after the initial registration with the Registrar, the procedures for
change in sponsoring registrar set forth in this policy shall apply.
Enforcement shall be the responsibility of the Registrar sponsoring the domain
name registration.

 

For each instance where an Registered Name holder wants to change its
Registrar for an existing domain name (i.e., a domain name that appears in a
particular top-level domain zone file), the gaining Registrar shall:

 

1)     Obtain express authorization from an
individual who has the apparent authority to legally bind the Registered Name
holder (as reflected in the database of the losing Registrar).

 

a)     The form of the authorization is at the
discretion of each gaining Registrar.

 

b)    The gaining Registrar shall retain a record
of reliable evidence of the authorization.

 

2)     In those instances when the Registrar of record is being changed
simultaneously with a transfer of a domain name from one party to another, the
gaining Registrar shall also obtain appropriate authorization for the transfer.
Such authorization shall include, bur not be limited to, one of the following:

 

a)     A bilateral agreement between the parties.

 

b)    The
final determination of a binding dispute resolution body.

 

c)     A
court order.

 

3)     Request, by the transmission of a “transfer” command as specified
in the Registry Registrar Protocol, that the Registry database be changed to
reflect the new Registrar.

 

a)     Transmission of a “transfer” command
constitutes a representation on the part of the gaining Registrar that:

 

15

 

(1)   the requisite authorization has been obtained
from the Registered Name holder listed in the database of the losing Registrar,
and

 

(2)   the losing Registrar will be provided with a
copy of the authorization if and when requested.

 

In those instances when the Registrar of record denies the requested
change of Registrar, the Registrar of record shall notify the prospective
gaining Registrar that the request was denied and the reason for the denial.

 

Instances when the requested change of sponsoring Registrar may be
denied include, but are not limited to:

 

1)     Situations described in the Domain Name Dispute Resolution
Policy

 

2)     A pending bankruptcy of the Registered Name holder

 

3)     Dispute over the identity of the Registered Name holder

 

4)     Request to transfer sponsorship occurs within the first 60 days
after the initial registration with the Registrar

 

In all cases, the losing Registrar shall respond to the email notice
regarding the “transfer” request within five (5) days. Failure to respond will
result in a default “approval” of the “transfer.”

 

Registry Requirements.

 

Upon receipt of the “transfer” command from the gaining Registrar, VGRS
will transmit an e-mail notification to both Registrars.

 

VGRS shall complete the “transfer” if either:

 

l)      The losing Registrar expressly “approves” the request, or

 

2)     VGRS does not receive a response from the losing Registrar
within five (5) days.

 

When the Registry’s database has been updated to reflect the change to
the gaining Registrar, VGRS will transmit an email notification to both
Registrars.

 

16

 

 

Records of Registration.

 

Each Registered Name
holder shall maintain its own records appropriate to document and prove the
initial domain name registration date, regardless of the number of Registrars with
which the Registered Name holder enters into a contract for registration
services.

 

Effect
on Term of Registration.

 

The completion by VGRS of
a holder-authorized transfer under this Part A shall result in a one-year
extension of the existing registration, provided that in no event shall the
total unexpired term of a registration exceed ten (10) years.

 

B. ICANN-Approved
Transfers.

Transfer of the
sponsorship of all the registrations sponsored by one registrar as the result
of acquisition of that registrar or its assets by another registrar may be made
according to the following procedure:

 

(a)   The gaining registrar must be accredited by
ICANN for the Registry TLD and must have in effect a Registry-Registrar
Agreement with VGRS for the Registry TLD.

 

(b)   ICANN must certify in writing to VGRS that
the transfer would promote the community interest, such as the interest in
stability that may be threatened by the actual or imminent business failure of a
registrar.

 

Upon satisfaction of
these two conditions, VGRS will make the necessary one-time changes in the
registry database for no charge, for transfers involving 50,000 name
registrations or fewer. If the transfer involves registrations of more than 50,000
names, VGRS will charge the gaining registrar a one-time flat fee of US$
50,000.

 

17

 

Exhibit C

Confidentiality
Agreement

 

THIS CONFIDENTIALITY
AGREEMENT is entered into by and between VeriSign Inc., a Delaware corporation, with a place of
business located at 21345 Ridgetop Circle, Dulles, Virginia 20166 (“VGRS”), and
Tucows Inc., a Pennsylvania corporation having its principal place of business
in Toronto, Ont (“Registrar”),
through their authorized representatives, and takes effect on the date executed
by the final party (the “Effective Date”).

 

Under
this Confidentiality Agreement (“Confidentiality Agreement”), the Parties
intend to disclose to one another information which they consider to be valuable,
proprietary, and confidential.

 

NOW,
THEREFORE, the parties agree as follows:

 

1. Confidential
Information

 

1.1. “Confidential
Information”, as used in this Confidentiality Agreement, shall mean all
information and materials including, without limitation, computer software,
data, information, databases, protocols, reference implementation and
documentation, and functional and interface specifications, provided by the
disclosing party to the receiving party under this Confidentiality Agreement
and marked or otherwise identified as Confidential, provided that if a
communication is oral, the disclosing party will notify the receiving party in
writing within 15 days of the disclosure.

 

2. Confidentiality Obligations

 

2.1.  In consideration of the disclosure of
Confidential Information, the Parties agree that:

 

(a)  The receiving party shall treat as strictly
confidential, and use all reasonable efforts to preserve the secrecy and
confidentiality of, all Confidential Information received from the disclosing
party, including implementing reasonable physical security measures and
operating procedures.

 

(b)  The receiving party shall make no disclosures
whatsoever of any Confidential Information to others, provided however, that if
the receiving party is a corporation, partnership, or similar entity,
disclosure is permitted to the receiving party’s officers, employees, contractors
and agents who have a demonstrable need to

 

18

 

 

know such Confidential
Information, provided the receiving party shall advise such personnel of the
confidential nature of the Confidential Information and of the procedures
required to maintain the confidentiality thereof, and shall require them to
acknowledge in writing that they have read, understand, and agree to be
individually bound by the terms of this Confidentiality Agreement.

 

(c) The
receiving party shall not modify or remove any Confidential legends and/or
copyright notices appearing on any
Confidential Information.

 

2.2.
The receiving party’s duties under this section (2) shall expire five
(5) years after the information is received or earlier, upon written
agreement of the Parties.

 

3. Restrictions
On Use

 

3.1.
The receiving party agrees that it will use any Confidential Information
received under this Confidentiality Agreement solely for the purpose of
providing domain name registration services as a registrar and for no other
purposes whatsoever.

 

3.2.
No commercial use rights or any licenses under any patent, patent application,
copyright, trademark, know-how, trade secret, or any other VGRS proprietary
rights are granted by the disclosing party to the receiving party by this
Confidentiality Agreement, or by any disclosure of any Confidential Information
to the receiving party under this Confidentiality Agreement.

 

3.3.
The receiving party agrees not to prepare any derivative works based on the
Confidential Information.

 

3.4.
The receiving party agrees that any Confidential Information which is in the
form of computer software, data and/or databases shall be used on a computer
system(s) that is owned or controlled by the receiving party.

 

4. Miscellaneous

 

4.1.
This Confidentiality Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Virginia and all applicable federal laws.
The Parties agree that, if a suit to enforce this Confidentiality Agreement is
brought in the U.S. Federal District Court for the Eastern District of
Virginia, they will be bound by any decision of the Court.

 

19

 

4.2.         The obligations set forth in this
Confidentiality Agreement shall be continuing, provided, however, that this
Confidentiality Agreement imposes no obligation upon the Parties with respect
to information that (a) is disclosed with the disclosing party’s prior written
approval; or (b) is or has entered the public domain through no fault of
the receiving party; or (c) is known by the receiving party prior to the
time of disclosure; or (d) is independently developed by the receiving
party without use of the Confidential Information; or (e) is made
generally available by the disclosing party without restriction on disclosure.

 

4.3.         This Confidentiality Agreement may be
terminated by either party upon breach by the other party of any its
obligations hereunder and such breach is not cured within three (3) calendar
days after the allegedly breaching party is notified by the disclosing party of
the breach. In the event of any such termination for breach, all Confidential
Information in the possession of the Parties shall be immediately returned to
the disclosing party; the receiving party shall provide full voluntary
disclosure to the disclosing party of any and all unauthorized disclosures
and/or unauthorized uses of any Confidential Information; and the obligations
of Sections 2 and 3 hereof shall survive such termination and remain in full
force and effect. In the event that the Registrar License and Agreement between
the Parties is terminated, the Parties shall immediately return all
Confidential Information to the disclosing party and the receiving party shall
remain subject to the obligations of Sections 2 and 3.

 

4.4.         The terms and conditions of this
Confidentiality Agreement shall inure to the benefit of the Parties and their
successors and assigns. The Parties’ obligations under this Confidentiality
Agreement may not be assigned or delegated.

 

4.5.         The Parties agree that they shall be
entitled to seek all available legal and equitable remedies for the breach of
this Confidentiality Agreement.

 

4.6.         The terms and conditions of this
Confidentiality Agreement may be modified only in a writing signed by VGRS and
Registrar.

 

4.7.         EXCEPT AS MAY OTHERWISE BE SET
FORTH IN A SIGNED, WRITTEN AGREEMENT BETWEEN THE PARTIES. THE PARTIES MAKE NO
REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE ACCURACY,
COMPLETENESS, CONDITION, SUITABILITY, PERFORMANCE, FITNESS FOR A PARTICULAR
PURPOSE, OR MERCHANTABILITY OF ANY CONFIDENTIAL INFORMATION, AND THE PARTIES
SHALL HAVE NO LIABILITY WHATSOEVER TO ONE ANOTHER RESULTING FROM RECEIPT OR USE
OF THE CONFIDENTIAL INFORMATION.

 

20

 

 

4.8.  If
any part of this Confidentiality Agreement is found invalid or unenforceable, such
part shall be deemed stricken herefrom and the Parties agree: (a) to negotiate
in good faith to amend this Confidentiality Agreement to achieve as nearly as
legally possible the purpose or effect as the stricken part, and (b) that the
remainder of this Confidentiality Agreement shall at all times remain in full
force and effect.

 

4.9.  This
Confidentiality Agreement contains the entire understanding and agreement of
the Parties relating to the subject matter hereof.

 

4.10.  Any
obligation imposed by this Confidentiality Agreement may be waived in writing
by the disclosing party. Any such waiver shall have a one-time effect and shall
not apply to any subsequent situation regardless of its similarity.

 

4.11.  Neither
Party has an obligation under this Confidentiality Agreement to purchase, sell,
or license any service or item from the other Party.

 

4.12.  The
Parties do not intend that any agency or partnership relationship be created
between them by this Confidentiality Agreement.

 

IN WITNESS WHEREOF, and
intending to be legally bound, duly authorized representatives of VGRS and
Registrar have executed this Confidentiality Agreement in Virginia on the dates
indicated below.

 

	
  (“Registrar”)

  	
   

  	
  VenSign, Inc. (“VGRS”)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/ Mark Rippe

  	
   

  
	
  Title:

  	
  Director Innovation & Research

  	
   

  	
  Title:

  	
  Vice President, Operations

  	
   

  
	
  Date:

  	
   

  	
  Oct. 1, 2001

  	
   

  	
  Date:

  	
  October 4, 2001

  	
   

  
	
   

  	
   

  	
  Ross W Rader

  	
   

  	
   

  	
   

  	
   

  
									

 

21Exhibit 10.7

 

AMENDED AND RESTATED MONITORING AGREEMENT (this “Agreement”), dated as
of September 30, 2004, among GRAHAM PACKAGING HOLDINGS COMPANY, LP, a
Pennsylvania limited partnership (“GPHC”), GRAHAM PACKAGING COMPANY, LP, a
Delaware limited partnership (“Opco”), BLACKSTONE MANAGEMENT PARTNERS III
L.L.C., a Delaware limited liability company (“BMP”), and GRAHAM ALTERNATIVE
INVESTMENT PARTNERS I, a Pennsylvania limited partnership (“GAIP”).

 

WHEREAS, BMP, by and through itself, its affiliates and their respective
officers, employees and representatives, has expertise in the areas of finance,
strategy, investment and acquisitions relating to the business of GPHC and
Opco; and

 

WHEREAS, GAIP, by and through itself, its affiliates and their
respective officers, employees and representatives, has expertise in the
operations of the business of GPHC and Opco; and

 

WHEREAS, GPHC, Opco and BMP are parties to a Monitoring Agreement,
dated as of February 2. 1998 (the “Existing Monitoring Agreement”); and

 

WHEREAS, the parties hereto desire that, effective as of the Closing
Date contemplated by the Stock Purchase Agreement, dated as of July 28,
2004, by and among Opco, OI Plastic Products FTS, Inc., a Delaware
corporation, and Owens-Illinois, Inc., a Delaware corporation (the “Closing
Date”), the Existing Monitoring Agreement be amended and restated as set forth
herein.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the
covenants and conditions contained herein, the parties hereto agree that the
Existing Monitoring Agreement is hereby amended and restated as of the Closing
Date as follows:

 

1.               Appointment.  GPHC and Opco hereby appoint BMP and GAIP to
render the advisory and consulting services described in Section 2 hereof
for the term of this Agreement.

 

2.               Services.

 

(a)                                  BMP hereby agrees that during the
term of this Agreement it shall render to GPHC and Opco, by and through itself,
its affiliates, and their respective officers, employees and representatives as
BMP in its sole discretion shall designate from time to time, advisory and
consulting services in relation to the affairs of GPHC, Opco and their
subsidiaries, including, without limitation, (i) advice in designing
financing structures and advice regarding relationships with GPHC, Opco and
their subsidiaries’ lenders and bankers; (ii) advice regarding the
structure and timing of public and private offerings of debt and equity
securities of GPHC, Opco and their subsidiaries; (iii) advice regarding
property dispositions or acquisitions; and (iv) such other advice directly
related or ancillary to the above financial advisory services as may be
reasonably requested by GPHC and Opco. 
It is expressly agreed that the services to be performed hereunder shall
not include investment banking or other financial advisory services rendered by
BMP or its affiliates to GPHC and Opco in connection with any specific
acquisition, divestiture, refinancing or recapitalization by GPHC, Opco or any
of their subsidiaries.  BMP

 

 

may be entitled to
receive additional compensation for providing services of the type specified in
the preceding sentence by mutual agreement of GPHC, Opco or such subsidiary and
BMP.

 

(b)                                 GAIP hereby agrees that during the term
of this Agreement it shall render to GPHC and Opco, by and through itself, its
affiliates, and their respective officers, employees and representatives as
GAIP in its sole discretion shall designate from time to time, advisory and
consulting services in relation to the business and operations of GPHC, Opco
and their subsidiaries.

 

3.               Fees.

 

(a)                                  GPHC and Opco and their respective
successors, jointly and severally, agree to pay to BMP an annual fee (the “BMP
Monitoring Fee”) of $3,000,000, payable in quarterly installments on March 31,
June 30, September 30 and December 31 (each such date, a “Payment
Date”) of each year commencing on December 31, 2004 and continuing through
the earlier of (i) the date on which affiliates of BMP hold, directly or
indirectly, beneficial ownership of less than 10% of the equity interests of
GPHC acquired on February 2,
1998 pursuant to the Agreement and Plan of Recapitalization, Redemption
and Purchase, dated as of December 18, 1997, by and among GPHC, Graham Packaging Corporation, a Pennsylvania corporation,
GAIP, Graham Engineering Corporation, a Pennsylvania corporation, Graham
Capital Corporation, a Pennsylvania corporation, Graham Recycling Corporation,
a Pennsylvania corporation, Donald C. Graham, BCP/Graham Holdings LLC, a
Delaware limited liability company, and BMP/Graham Holdings Corporation, a
Delaware corporation, or (ii) such date as GPHC, Opco and BMP shall agree (the “BMP
Termination Date”).

 

(b)                                 GPHC and Opco
and their respective successors, jointly and severally, agree to pay to GAIP an
annual fee (the “GAIP Monitoring Fee”) of $1,000,000, payable in quarterly
installments through the earlier of (i) the date on which GAIP and its
affiliates hold, directly or indirectly, beneficial ownership of less than
one-third (1/3rd) of the equity interests of GPHC that were held by such
entities on February 2, 1998, or (ii) such date as GPHC, Opco and
GAIP shall agree (the “GAIP Termination Date”), but in either case subject to Section 3(c).  The GAIP Monitoring Fee will be paid on each
Payment Date on which GPHC, Opco or any of their respective successors pays a
portion of the BMP Monitoring Fee. GAIP hereby acknowledges and agrees that,
subject to Section 3(c), its right to the GAIP Monitoring Fee will
terminate at the BMP Termination Date. 
GAIP hereby further acknowledges and agrees that BMP shall have the
right in its sole discretion:

 

•                  to
terminate its right to the BMP Monitoring Fee, in which case, subject to Section 3(c),
GAIP’s right to the GAIP Monitoring Fee will also be terminated;

 

•                  to
reduce the amount of the BMP Monitoring Fee, in which case, subject to Section 3(c),
the amount of the GAIP Monitoring Fee will also be reduced on a proportionate
basis; or

 

2

 

•                  to
accept a monetization or a buy out of the BMP Monitoring Fee, in which case,
subject to Section 3(c), GAIP will be deemed to
have agreed to a monetization or buy out of the GAIP Monitoring Fee on a
proportionate basis.

 

(c)                                  Notwithstanding anything herein to the contrary, GAIP’s right
to receive the GAIP Monitoring Fee may not terminate or be subject to any
reduction (it being agreed that a deferral of fees pursuant to Section 3(e) shall
not be considered a reduction), monetization or buy out unless GAIP has
received GAIP Monitoring Fees aggregating not less than $4,000,000 (including
any payments made to GAIP in respect of any monetization or buy out of the GAIP
Monitoring Fee).

 

(d)                                 The quarterly installments of the BMP Monitoring Fee and GAIP
Monitoring Fee payable on December 31, 2004 shall not be prorated.  Any BMP Monitoring Fee or GAIP Monitoring Fee
for the last calendar year of this Agreement shall be prorated for the period
of such year ending on the BMP Termination Date or the GAIP Termination Date,
as the case may be.

 

(e)                                  To the extent required by any debt financing of GPHC, Opco or
any of their subsidiaries, payment of the BMP Monitoring Fee and the GAIP
Monitoring Fee shall be deferred until the earlier of (i) the dissolution
of GPHC and (ii) the first date on which the payment of such deferred BMP
Monitoring Fee and GAIP Monitoring Fee is not prohibited under such debt
financing.  Any BMP Monitoring Fee and
GAIP Monitoring Fee deferred pursuant to this Section 3(e) shall bear
interest at a rate of 10% per annum, compounded annually, from the date
deferred until paid.

 

4.               Reimbursements.  In addition to the fees payable pursuant to
this Agreement, GPHC and Opco shall, subject to Sections 6.4(vii) and 6.7
of the Fifth Amended and Restated Agreement of Limited Partnership of GPHC,
dated as of February 2, 1998, jointly and severally, pay directly or
reimburse BMP and GAIP for their respective Out-of-Pocket Expenses (as defined
below).  For the purposes of this
Agreement, the term “Out-of-Pocket Expenses” shall mean the reasonable
out-of-pocket costs and expenses reasonably incurred by BMP, GAIP or their
respective affiliates in connection with the services rendered hereunder in
pursuing, or otherwise related to, the business of GPHC or Opco, including,
without limitation, (i) fees and disbursements of any independent professionals
and organizations, including, without limitation, independent accountants,
outside legal counsel or consultants, (ii) costs of any outside services
or independent contractors such as financial printers, couriers, business
publications, on-line financial services or similar services and (iii) transportation,
per diem costs, word processing expenses or any similar expense not associated
with its ordinary operations.  All
reimbursements for Out-of-Pocket Expenses shall be made promptly upon or as soon
as practicable after presentation by BMP or GAIP to GPHC
or Opco of a written statement thereof.

 

5.               Indemnification.

 

(a)                                  GPHC and Opco,
jointly and severally, will indemnify and hold harmless BMP, GAIP, their respective affiliates, and their respective
partners (both general and limited), members (both managing and otherwise),
officers, directors, employees, agents and representatives (each such person
being an “Indemnified Party”) from and against any and all 

 

3

 

losses, claims,
damages and liabilities, whether joint or several (the “Liabilities”), related
to, arising out of or in connection with the advisory and consulting services
contemplated by this Agreement or the engagement of BMP and GAIP
pursuant to, and the performance by BMP and GAIP of
the services contemplated by, this Agreement, whether or not pending or
threatened, whether or not an Indemnified Party is a party, whether or not
resulting in any liability and whether or not such action, claim, suit,
investigation or proceeding is initiated or brought by GPHC
or Opco.  GPHC and Opco, jointly and
severally, will reimburse any Indemnified Party for all reasonable costs and
expenses (including, without limitation, reasonable attorneys’ fees and expenses)
as such costs and expenses are incurred in connection with investigating,
preparing, pursuing, defending or assisting in the defense of any action, claim, suit, investigation or
proceeding for which the Indemnified Party would be entitled to indemnification
under the terms of the previous sentence, or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party
thereto.  GPHC
and Opco will not be liable under the foregoing
indemnification provision with respect to any Indemnified Party, to the extent
that any loss, claim, damage, liability, cost or expense is determined by a
court, in a final judgment from which no further appeal may be taken, to have
resulted primarily from the gross negligence or willful misconduct of BMP or GAIP.  If an
Indemnified Party is reimbursed hereunder for any expenses, such reimbursement
of expenses shall be refunded to the extent it is finally judicially determined
that the Liabilities in question resulted primarily from the gross negligence
or willful misconduct of BMP or GAIP.

 

(b)                                 Notwithstanding any provision herein
to the contrary, no partner of GPHC or Opco shall be liable for any obligations of GPHC or Opco hereunder,
including, without limitation, the payment of the BMP Monitoring Fee or the GAIP Monitoring Fee pursuant to Section 3 hereof, the
payment or reimbursement of Out-of-Pocket Expenses pursuant to Section 4
hereof and the indemnification obligations under Section 5(a) hereof.

 

6.               Accuracy
of Information.  GPHC
and Opco shall furnish or cause to be furnished to
BMP and GAIP such information as BMP or GAIP believe appropriate to its
monitoring services hereunder and to the ownership by affiliates of BMP or GAIP of equity interests of GPHC and/or Opco (all such
information so furnished being the “Information”).  GPHC and Opco recognize and confirm that each of BMP and GAIP (i) will
use and rely primarily on the Information and on information available from
generally recognized public sources in performing the services contemplated by
this Agreement without having independently verified the same, (ii) does
not assume responsibility for the accuracy or completeness of the Information
and such other information and (iii) is entitled to rely upon the
Information without independent verification.

 

7.               Term.  This Agreement shall be effective as of the
Closing Date and shall continue as to BMP until the BMP Termination Date and as
to GAIP, until the GAIP
Termination Date; provided  that Section 4 hereof shall
remain in effect with respect to Out-of-Pocket Expenses incurred prior to the
BMP Termination Date; and provided  further  that Section 3(b) hereof
shall remain in effect as to GAIP until GAIP has received GAIP Monitoring
Fees aggregating not less than $4,000,000 as provided in Section 3(c).  The provisions of Sections 5, 6 and 8 hereof
and other sections hereof as the context so requires shall survive the
termination of this Agreement.

 

4

 

8.               Permissible
Activities.  Subject to applicable law,
nothing herein shall in any way preclude BMP, its affiliates or their
respective partners (both general and limited), members (both managing and
otherwise), officers, directors, employees, agents or representatives from
engaging in any business activities or from performing services for its or
their own account or for the account of others, including, without limitation,
for companies that may be in competition with the business conducted by GPHC or Opco.

 

9.               Miscellaneous.

 

(a)                                  No amendment or waiver of any
provision of this Agreement, or consent to any departure by either party hereto
from any such provision, shall be effective unless the same shall be in writing
and signed by all of the parties hereto. 
Any amendment, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.  The waiver by
any party of any breach of this Agreement shall not operate as or be construed
to be a waiver by such party of any subsequent breach.

 

(b)                                 Any notices or other communications
required or permitted hereunder shall be sufficiently given if delivered
personally or sent by facsimile, Federal Express or other overnight courier,
addressed as follows or to such other address of which the parties may have
given notice:

 

If to BMP:

 

c/o
The Blackstone Group L.P.

345 Park Avenue, 31st Floor

New York, New York 10154

Attention:  Howard A. Lipson

Facsimile:  (212) 583-5703

 

If to GPHC or to Opco:

 

c/o
Graham Packaging Holdings Company, LP

2401 Pleasant Valley Road

York, PA 17402

Attention:  John E. Hamilton

Facsimile:  (717) 849-8541

 

If to GAIP:

 

c/o
Graham Capital Company 

1420 Sixth Avenue

York, PA 17403

Attention: William H. Kerlin, Jr.

Facsimile: (717) 848-5951

 

Unless otherwise specified herein, such notices or other communications
shall be deemed received (i) on the date
delivered, if delivered personally or sent by facsimile, and (ii) one
business day after being sent by Federal Express or other overnight courier.

 

5

 

(c)                                  This Agreement shall constitute the
entire agreement between the parties with respect to the subject matter hereof,
and shall supersede all previous oral and written (and all contemporaneous
oral) negotiations, commitments, agreements and understandings relating hereto,
including without limitation the Existing Monitoring Agreement.

 

(d)                                 The rights granted to BMP and GAIP shall not be transferred or assigned without the prior
written consent of GPHC and Opco,
except that each of BMP and GAIP may transfer or assign
its rights under this Agreement to any of its affiliates.

 

(e)                                  This Agreement shall be governed by,
and construed and interpreted in accordance with, the laws of the State of New
York.  This Agreement shall inure solely
to the benefit of, and be binding upon, BMP, GAIP, GPHC, Opco
and their respective successors and assigns and, unless otherwise expressly
provided herein, nothing in this Agreement, express or implied, is intended to
or shall confer upon any other person any rights, benefits or remedies of any
nature whatsoever under or by reason of this Agreement; provided  that
the provisions of Section 5 hereof shall inure to the benefit of each
Indemnified Party.

 

(f)                                    This Agreement may be executed by
one or more parties to this Agreement on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument.

 

(g)                                 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, and any
such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

[Remainder of page left blank intentionally]

 

6

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered by their duly authorized officers or agents as of the
date first above written.

 

	
   

  	
  BLACKSTONE MANAGEMENT PARTNERS III

  
	
   

  	
  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Howard A. Lipson

  	
   

  
	
   

  	
   

  	
    Name:

  	
  Howard A. Lipson

  
	
   

  	
   

  	
    Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAHAM PACKAGING HOLDINGS

  
	
   

  	
  COMPANY, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BCP/Graham
  Holdings, LLC, its managing general

  partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ John E. Hamilton

  	
   

  
	
   

  	
   

  	
    Name:

  	
  John E. Hamilton

  
	
   

  	
   

  	
    Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAHAM PACKAGING COMPANY, L.P.

  
	
   

  	
   

  
	
   

  	
  By: GPC Opco GP,
  LLC, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ John E. Hamilton

  	
   

  
	
   

  	
   

  	
    Name:

  	
  John E. Hamilton

  
	
   

  	
   

  	
    Title:

  	
  Chief Financial Officer, Treasurer and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAHAM ALTERNATIVE INVESTMENT PARTNERS I

  
	
   

  	
   

  
	
   

  	
  By: Graham Family Growth (GP) Company, its general partner

  
	
   

  	
   

  
	
   

  	
  By: GPC Investments, LLC, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ William H. Kerlin, Jr.

  	
   

  
	
   

  	
   

  	
      Name:

  	
  William H. Kerlin, Jr.

  
	
   

  	
   

  	
      Title:

  	
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]