Document:

[***] CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF
THE SECURITIES ACT OF 1933, AS AMENDED.

 

Exhibit
10.36

 

SERVICES AGREEMENT

Commercial
Terms

 

	
  1.

  	
   

  	
  Consultant

  	
   

  	
  Aptas, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1899 Wynkoop, Suite 600

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Denver, CO 80202

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Services

  	
   

  	
  The Consultant will provide the Services and
  Deliverables as outlined in Schedule 1.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Timetable

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commencement Date (Pilot Project)

  	
   

  	
  3 October 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Completion Date (Pilot Project)

  	
   

  	
  18 November 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commencement Date (Initial Cycle)

  	
   

  	
  19 November 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Completion Date (Initial Cycle)

  	
   

  	
  (i) Metro – 21 November 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii) Regional – 23 June 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commencement Date (Ongoing Phase)

  	
   

  	
  To be advised by Sensis

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Completion Date (Ongoing Phase)

  	
   

  	
  To be agreed between the parties

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Project Plan

  	
   

  	
  As described in Schedule 1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Fees and Payment Plan

  	
   

  	
  As described in paragraph 1 of Schedule 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Special Conditions

  	
   

  	
  Deliverables will be subject to acceptance testing
  by Sensis as described in Schedule 3.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Notices

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sensis Pty Ltd

  	
   

  	
  Address:

  	
   

  	
  181-189 Victoria Pde

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Collingwood

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Victoria 3066, Australia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Fax:

  	
   

  	
  (613) 9201 4914

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Phone:

  	
   

  	
  011 613-9201-47   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Attn:

  	
   

  	
  Amanda Whelan

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Consultant

  	
   

  	
  Address:

  	
   

  	
  1899 Wynkoop, Suite 600

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Denver, CO 80202

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Fax:

  	
   

  	
  303.308.3219

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Attn:

  	
   

  	
  Curtis Fletcher

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Work

  	
   

  	
  Any Deliverables specified in Schedule 1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Acceptance Criteria

  	
   

  	
  As described in paragraph 1 of Schedule 3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Insurance

  	
   

  	
  Yes

  

 

 

By signing this
agreement, the Consultant agrees to be bound by the terms and conditions
overleaf which are hereby incorporated into this Agreement.

 

EXECUTED
as an agreement on                                                               2003

 

	
  SIGNED by

  	
   

  	
  )

  	
   

  	
   

  
	
  for
  and on behalf of SENSIS PTY LTD (as

  	
   

  	
  )

  	
   

  	
   

  
	
  agent for TELSTRA CORPORATION

  	
   

  	
  )

  	
   

  	
   

  
	
  LIMITED) in the presence of:

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   /s/ Amanda Whelan

  	
   

  	
   

  	
  )

  	
   

  	
   /s/ T. Arthur

  	
   

  
	
  (Signature
  of witness)

  	
   

  	
  )

  	
   

  	
  Signature
  of authorised person

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   Amanda Whelan

  	
   

  	
   

  	
  )

  	
   

  	
   General Manager - Product

  	
   

  
	
  (Name
  of witness)

  	
   

  	
  )

  	
   

  	
  Office held

  
	
   

  	
   

  	
  )

  	
   

  	
   T. ARTHUR

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
  Name of authorised
  person (block letters)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  )

  	
   

  	
   

  
	
  for
  and on behalf of APTAS, INC.

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   in the presence of:

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   /s/ Curtis Fletcher

  	
   

  	
   

  	
  )

  	
   

  	
   /s/ Perry Evan

  	
   

  
	
  (Signature
  of witness)

  	
   

  	
  )

  	
   

  	
  Signature of authorised
  person

  
	
   

  	
   

  	
  )

  	
   

  	
   CEO

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
  Office held

  
	
  Curtis Fletcher

  	
   

  	
   

  	
  )

  	
   

  	
  PERRY EVANS

  	
   

  
	
  (Name
  of witness)

  	
   

  	
  )

  	
   

  	
  Name of authorised
  person (block letters)

  
											

 

2

 

TERMS & CONDITIONS

 

1                            Scope

 

Services during the Pilot Project

 

1.1                    The Consultant shall provide to Sensis the
Services during the Pilot Project in accordance with the terms and conditions
of this Agreement (including the Special Conditions).

 

1.2                    The parties agree that any work performed by
the parties relating to the Services prior to the Commencement Date is deemed
to have been done under and subject to the terms and conditions of this
Agreement.

 

Additional Services (during the Initial
Cycle and the Ongoing Phase)

 

1.3                    If requested to do so by Sensis, the
Consultant shall also provide to Sensis the Additional Services during the
Initial Cycle, the Ongoing Phase, or both in accordance with the terms and
conditions of this Agreement (including paragraphs 1.1(b) and (c) of Schedule
1).

 

1.4                    The Consultant agrees and acknowledges that
neither this Agreement nor successful completion of the Pilot Project obliges
Sensis to acquire further services (including any Additional Services) from the
Consultant following completion of the Pilot Project or termination or expiry
of this Agreement.

 

Exclusivity obligations

 

1.5                    The Consultant agrees that it will not provide
the Services (or any similar services) to any other person in Australia:

 

(a)                    until completion of the Pilot Project;

 

(b)                   if Sensis requires the Consultant to provide
any Additional Services during the Initial Cycle, until the completion of the
Initial Cycle;

 

(c)                    if Sensis requires the Consultant to provide
additional Services during the Ongoing Phase, until the completion of the
Ongoing Phase, provided that the Consultant is paid the fees as specified in
Item 3 in Schedule 2 of this Agreement to process on an annual basis not less than 25% of the current volume of the Metro Display Advertisements,
the Metro In-Column Advertisements, the Regional In-Column Advertisements and
the Brand Packages

 

1.6                    Clause 1.5 does not prevent the Consultant
from providing the Services (or any services) to international organisations
which also have a presence in Australia, provided that those Services are not
provided directly to the Australian arm of the international organisation.

 

1.7                    The exclusivity obligations in clause 1.5 and
1.10 will terminate on expiry or termination for any reason of this Agreement.

 

1.8                    If the parties agree to extend the term of
this Agreement, clauses 1.5 and 1.10 will continue to apply during the
extension period unless otherwise agreed in writing by the parties.

 

1.9                    Upon request by Sensis and subject to clause
1.10, the Consultant agrees to enter into good faith negotiations with Sensis
with a view to providing the Services (or similar services) to Sensis’
businesses outside Australia on terms substantially similar to the terms of
this agreement (including terms relating to pricing), except that any
exclusivity terms will be agreed between the parties on a case by case basis.

 

1.10              Subject to clause 1.12, the Consultant will
not enter into a business agreement providing similar Services to any third
party in Europe or Asia during the term of this Agreement that would prohibit
the Consultant from providing the Services to Sensis unless:

 

(a)                    the Consultant has offered in writing to
supply those services to Sensis on terms no less favourable than offered to or
by the third party, which offer must provide Sensis with reasonable details of
those terms, including Consultant’s revenue opportunity over the full term of
the agreement; and

 

 

(b)                   Sensis declines the offer in writing or,
following good faith negotiations, the parties cannot agree on terms within 15
Working Days’ from the date on which Sensis receives the written offer from
Consultant specified in paragraph (a) above. As part of the good faith
negotiations, the parties shall balance the Consultant’s revenue opportunity
over the full term of the agreement with the revenue opportunities from the
Sensis arm in that territory.

 

Sensis will be deemed to have declined the offer if Sensis does not
request negotiations within 5 Working Days’ of receiving the Consultant’s
written offer specified in paragraph (a) above.

 

1.11              Clause 1.10 will apply to the supply of
services to third parties in all regions and countries in Europe and Asia, even
if Sensis has previously declined an offer, or failed to reach agreement with
the Consultant, in respect of the supply of services in another region or
country.

 

1.12              Clause 1.10 will only apply during the Ongoing
Phase if the Consultant is engaged to process during the Ongoing Phase not less
than number of advertisements specified in clause 1.5(c).

 

2                            General Obligations

 

2.1                    The Consultant must ensure that:

 

(a)                    the Services are provided with due care and
skill, in a timely and professional manner, by suitably qualified and
experienced personnel, and so as to meet any timing requirements set out in
paragraph 2 of Schedule 1;

 

(b)                   any materials provided to Sensis under this
Agreement (including the Deliverables) will conform to the specifications set
out in this Agreement; and

 

(c)                    the Deliverables are delivered to Sensis so as
to meet the acceptance criteria set out in paragraph 1 of Schedule 3.

 

2.2                    Unless otherwise agreed by Sensis in writing,
the Consultant must provide and is responsible for all equipment necessary for
it to provide the Services.

 

2.3                    The Consultant must comply with all workers’
compensation, Work Care or similar legislation in each jurisdiction in which
the Consultant and/or its Personnel actually provide the Services and pay all
amounts required by that legislation in respect of the Consultant and its
Personnel.

 

2.4                    In performing this Agreement, the Consultant must
comply with (and must ensure that all personnel involved in the provision of
the Services (“Personnel”) comply
with):

 

(a)                    all laws, industry codes and standards in each
jurisdiction in which the Consultant and/or its Personnel actually provide the
Services and which are applicable to the provision of the Services;

 

(b)                   any commercially reasonable directions and
instructions which may be given to the Consultant or any Personnel by Sensis;
and

 

(c)                    any reasonable written requests, which may be
given to the Consultant or any Personnel by Sensis concerning the following:

 

(i)                        systems and technical requirements;

 

(ii)                     occupational health & safety requirements;

 

(iii)                  environmental requirements; and

 

(iv)                 corporate policies or standards.

 

2.5                    The Consultant must comply with the acceptance
testing procedures as set out in paragraph 2 of Schedule 3.

 

2.6                    The Consultant must comply with the personnel
requirements set out at paragraph 1.4 of Schedule 1.

 

 

2.7                    Upon
engagement of the Consultant to perform the Services during the Initial Cycle,
the Consultant must, upon written request by Sensis, enter into an escrow
agreement for the source code for the DKB and any other software used by the
Consultant to provide the Services, which escrow agreement will:

 

(a)                    require the
Consultant to deposit that source code with an escrow agent in Australia
mutually agreed by the parties; and

 

(b)                   allow Sensis
and its contractors to obtain access to and to use and modify the source code
so that Sensis or its contractors can continue to provide the Services to
Sensis if, at any time prior to the execution of a formal licence agreement
between the parties for the DKB source code and the delivery of that source
code:

 

(i)                        the
Consultant is or becomes Insolvent; or

 

(ii)                     is unable or
unwilling to provide Services as defined herein.

 

Source code access
is provided solely for the purpose of allowing Sensis or its contractors to
complete the provision of the Services to Sensis in accordance with this
Agreement. No other rights are granted or authorized.

 

2.8                    Sensis will
pay the costs of the escrow agent contemplated at clause 2.7(a) above.

 

3                            Intellectual
Property

 

3.1                    Sensis grants
the Consultant a non-exclusive, royalty-free, non-transferable licence for the
term of this Agreement to use the Sensis Content to the extent necessary to
enable the Consultant to perform the Services and any Additional Services as
defined in this Agreement.

 

3.2                    The Consultant
grants to Sensis a non-exclusive, perpetual, irrevocable, royalty free licence
to use, reproduce and modify the Deliverables, the Background IP and the
Project IP but only to the extent necessary to enable Sensis to use the
Deliverables in connection with its Yellow Pages® and other directory products.

 

3.3                    The Consultant
must not:

 

(a)                    use the
ontology developed for Sensis under this Agreement (“Sensis Ontology”) in the course of providing services to any
third party; or

 

(b)                   license the
Sensis Ontology to any third party,

 

without the prior
written consent of Sensis.

 

3.4                    The Consultant
warrants that the Services and use of the Background IP, Project IP or
Deliverables by Sensis or any person authorised by Sensis will not infringe the
Intellectual Property rights (including moral rights) of any person or infringe
any other rights or laws and the Consultant fully indemnifies Sensis, Telstra
and their representatives against any Loss incurred by any of them in
connection with a claim of such infringement by a third party or breach of this
clause by the Consultant (“Third Party Claim”).

 

3.5                    If a Third
Party Claim is made or there is a breach of the warranty in clause 3.4 the
Consultant will, without limiting any of Sensis’ other rights or remedies,
within 15 Working Days of receiving written notice of a Third Party Claim, at
its cost obtain any necessary licences, or make such modifications or perform
such services, as are required to ensure that Sensis has a continued right to
use Deliverables without infringing the Intellectual Property rights of any
third party.

 

4                            Fees
and Payment

 

4.1                    The fees
payable by Sensis to the Consultant are set out in Schedule 2.

 

4.2                    The Consultant
shall invoice Sensis for amounts payable by Sensis under this

 

 

Agreement at the
times and in the manner set out in Schedule 2.

 

4.3                    Sensis shall
pay the Consultant the amount of any invoice which is valid and correctly
rendered within 30 Working Days of receipt, unless Sensis disputes the amount
of the invoice in which case Sensis will pay the undisputed amount and dispute
the balance in accordance with clause 12. Sensis may deduct from such amounts
any moneys due to Sensis from the Consultant, whether under this agreement or
otherwise.

 

4.4                    Subject to
clause 4.5, where GST is imposed
on any supply made under this Agreement by one party (“the supplying party”) to another party (“the receiving party”),
the receiving party must pay or provide the GST Exclusive Consideration for the
Supply and, in addition to and at the same time as the GST Exclusive
Consideration is payable or to be provided for the supply, an additional amount
calculated by multiplying the value of that GST Exclusive Consideration
(without deduction or set-off) by the prevailing GST rate. This clause 4.4 does
not apply to a supply for which a GST inclusive consideration has been agreed
unless the supply is made after a change to the GST rate is effected and the
agreed GST inclusive consideration has not had the GST rate change taken into
account, in which case the consideration payable for the supply shall be
calculated pursuant to this clause 4.4.

 

4.5                    The receiving
party is not required to pay any amount of GST to the supplying party unless
the supplying party has made demand for payment by means of a Tax Invoice.

 

4.6                    If the amount
of GST recovered by the supplying party from the receiving party differs from
the amount of GST payable at law by the supplying party in respect of the
supply, the amount payable by the receiving party to the supplying party will
be adjusted accordingly.

 

4.7                    Where the
receiving party is liable to reimburse the supplying party for any expenditure
incurred by the supplying party (“Expenditure”),
the amount reimbursed by the receiving party shall be the GST exclusive Expenditure plus any GST
payable by the receiving party pursuant to clause 4.4.

 

4.8                    Sensis may
deduct from the fees payable by it under this Agreement any amount it is
required to withhold under any tax law and will provide the Consultant with
receipts and other documentation issued by the relevant tax authority
evidencing any such withholding.

 

5         Warranty
and Indemnity

 

5.1                    The Consultant
represents and warrants that as at the date of this Agreement it has full
corporate power and authority to enter into, perform and observe its
obligations under this Agreement and its obligations under this Agreement are
valid, binding and enforceable.

 

5.2                    The Consultant
fully indemnifies Sensis, Telstra and their representatives (“Indemnified persons”) against all Loss
incurred by any of the indemnified persons arising out of or in connection
with:

 

(a)                    any breach of
this Agreement or any act or omission by the Consultant
in connection with the Services;

 

(b)                   any illness,
injury or death to any person, or any loss or damage to any property of any
person, arising out of or in connection with the performance by the Consultant
or its Personnel of their obligations under this Agreement; and

 

(c)                    any negligence
or any wilful act or omission by the Consultant or its representatives
(including the Personnel), or any failure by any of them to comply with any
relevant law;

 

except to the extent
that the Loss is caused by the negligence or wrongful act or omission of an
indemnified person.

 

 

6         Confidentiality

 

6.1                    Each party
must keep the Confidential Information of the other party secret and must not:

 

(a)                    use or
reproduce the Confidential Information of the other party except for the
purpose of performing its obligations under this Agreement; or

 

(b)                   disclose the
Confidential Information of the other party to any other person, except as
permitted under clause 6.2.

 

6.2                    Each party may
disclose the Confidential Information of the other party on a need to know
basis to:

 

(a)                    its legal
advisers in order to advise it in relation to its rights under this Agreement;

 

(b)                   to the extent
required by law or by a lawful requirement of any government or governmental
body, authority or agency or in connection with legal proceedings relating to
this Agreement;

 

(c)                    to its
directors, officers, employees, contractors and other representatives
(including, in the case of the Consultant, to the Personnel); and

 

(d)                   in the case of
Sensis:

 

(i)                        to
Telstra;

 

(ii)                     to its
directors, officers, employees, contractors and other representatives; and

 

(iii)                  as required
under the Telstra Corporation Act 1991 (Cth) or the listing rules of any stock
exchange on which any securities of Telstra or Sensis are listed.

 

6.3                    If a party
discloses any of the other party’s Confidential Information under clause 6.2,
it must take reasonable steps to ensure that the recipient of the Confidential
Information does not use, reproduce or disclose that information except to the
extent permitted by clause 6.2.

 

6.4                    Without
limiting the Consultant’s obligations under 6.3, upon reasonable request by
Sensis, the Consultant must procure that each Personnel signs a confidentiality
agreement in favour of Sensis and Telstra in a form approved in advance by
Sensis.

 

6.5                    The
obligations of confidentiality imposed by this Agreement survive the
termination of this Agreement.

 

7         Term and Termination

 

7.1                    This Agreement
commences or is deemed to have commenced on the Commencement Date and continues
for three years or until the Completion Date of the Ongoing Phase (whichever
occurs later), unless terminated earlier in accordance with this Agreement
(including this clause 7). The parties may agree in writing to extend the term
of this Agreement.

 

7.2                    Sensis may
terminate this Agreement without cause by giving to the Consultant 30 days’
written notice. If Sensis terminates this Agreement under this clause, Sensis
shall pay the Consultant the fees specified in paragraph 1 of Schedule 2 for
the data provided to Consultant up to the termination date.

 

7.3                    Either party
may terminate this Agreement immediately by written notice to the other party
if:

 

(a)                    the other
party commits a breach of a material term of this Agreement which is not
capable of being remedied or, in the case of the Consultant the breach is not
remedied within 15 Working Days of receiving written notice to do so; or

 

(b)                   the other party
is or becomes Insolvent.

 

7.4                    Sensis may
terminate this Agreement immediately by written notice to the

 

 

Consultant if a
Change of Control occurs in respect of the Consultant which:

 

(a)                    is not
notified in advance to Sensis; and

 

(b)                   would prevent
or may reasonably be expected to adversely impact the Consultant from fulfilling
its obligations under this Agreement.

 

7.5                    Upon expiry or
termination of this Agreement for any reason:

 

(a)                    each party
must, as soon as reasonably practicable, deliver to the other party, or at the
option of the other party, destroy or delete all documents and materials
containing the other party’s Confidential Information which are in its
possession, custody or control;

 

(b)                   the Consultant
must, as soon as reasonably practicable, deliver to Sensis all Deliverables and
any other property of Sensis in its possession, custody or control; and

 

(c)                    Sensis will
maintain all rights in and to the Deliverables provided under this Agreement,
but will have no further rights in and to the Background IP, Project IP, or any
other Intellectual Property rights of the Consultant, except to the extent that
this is contemplated under clause 3.2.

 

8         Records
and Access

 

8.1                    The Consultant
must keep full and proper records relating to the performance of the Services
during the Term of this Agreement and for 7 years following the expiry or
termination of this Agreement.

 

8.2                    The Consultant
must comply with all reasonable requests by Sensis to have access to the
records referred to in clause 8.1 and must provide all assistance as may
reasonably be requested by Sensis in conducting any activities pursuant to this
clause 8.2.

 

9         Privacy

 

9.1                    The Consultant
agrees, in respect of Personal Information held in connection with this
agreement (including information relating to any customers of Sensis and
Telstra):

 

(a)                    to comply with
applicable legislation regarding privacy (including the Privacy Act 1988 (Cth)
(regardless of whether or not the Consultant is required to comply with the
Privacy Act 1988 (Cth)) and all Sensis and Telstra policies notified to the
Consultant from time to time;

 

(b)                   to use Personal
Information only for the purpose of fulfilling its obligations under this
agreement;

 

(c)                    not to
disclose Personal Information without the written authority of Sensis except
for the purposes of fulfilling its obligations under this Agreement. The
Consultant must immediately notify Sensis when it becomes aware that a
disclosure of Personal Information may be required by law; and

 

(d)                   not to transfer
Personal Information to any person (including itself) outside Australia,
unless:

 

(i)                        it
reasonably believes that the recipient of the Personal Information is subject
to a law, binding scheme, or contract which effectively upholds principles for
fair handling of Personal Information that are substantially similar to the
National Privacy Principles contained in Schedule 3 of the Privacy Act 1988
(Cth); or

 

(ii)                     it has taken
reasonable steps to ensure that the recipient will not hold use or disclose any
part of the Personal Information in a manner which is inconsistent with the
National Privacy Principles contained in Schedule 3 of the Privacy Act 1988
(Cth).

 

 

10       Insurance

 

10.1              The Consultant must
take out and maintain valid and enforceable for the Term of this Agreement (and
in respect of insurance policies written on a “claims made” basis for three
years after the Term) the following insurance policies (“Policies”):

 

(a)                    professional
indemnity insurance for no less than USD$1,000,000 in annual aggregate; and

 

(b)                   public and
product liability insurance for the Consultant and the Consultant’s personnel
against any liability to pay to any party (including Sensis) arising out of or
in connection with this Agreement for an incurred amount of no less than
USD$1,000,000 per accident or incident claim.

 

10.2              The Consultant must
ensure that Sensis’ interest under this Agreement is noted on the Policies
(where required pursuant to clause 10.1) and on request by Sensis must provide
Sensis with certificates from the Consultant’s insurers certifying that the
Consultant has the insurance required under clause 10.1.

 

11                     General

 

11.1              The Consultant may
not transfer, assign, charge, mortgage or encumber any of its rights under this
Agreement without the prior written consent of Sensis (which consent must not
be unreasonably withheld).

 

11.2              Sensis may transfer
or assign any of its rights, or novate any of its rights and obligations, under
this Agreement to a related body corporate or to a body corporate to which a
material part of Sensis’ assets are transmitted, transferred, or vested as part
of a merger or reconstruction of Sensis or Telstra.

 

11.3              A notice, approval,
consent or other communication (“Notice”)
in connection with this Agreement must be in writing and sent by standard
prepaid post or by facsimile marked and addressed in accordance with Item 6 of
the Commercial Terms.

 

11.4              The Consultant is an
independent contractor of Sensis and neither it nor its employees, agents or
contractors are agents, employees or joint venturers of Sensis.

 

11.5              This Agreement and
the transactions contemplated by them are governed by the law in force in
Victoria, Australia and each party unconditionally and irrevocably submits to
the non exclusive jurisdiction of the courts of Victoria, Australia and courts
of appeal from them for determining any dispute arising under this Agreement or
in relation to any transactions contemplated under this Agreement.

 

11.6              The Consultant must
not sub-contract any of its obligations under this Agreement without Sensis’
prior written consent.

 

11.7              The Consultant must
sign, and must procure each of its employees, agents and contractors to sign,
all documents and do anything reasonably required by Sensis to give effect to
the licence contemplated under clause 3.2 of all DP, if any, in the
Deliverables to Sensis and to effectively consent to Sensis using and changing
any Deliverable as it sees fit.

 

11.8              A provision of or a
right created under this agreement may not be:

 

(a)                    waived except
in writing signed by the party granting the waiver; or

 

(b)                   varied except
in writing signed by the parties.

 

11.9              Termination or
expiry of this Agreement will not affect:

 

(a)                    the rights of
the parties which may have accrued before the termination or expiry date; or

 

(b)                   the terms of
this Agreement which by their nature survive termination or expiry (including
clause 6).

 

 

12                     Dispute
Resolution

 

12.1              Any party claiming
that a dispute has arisen must give written notice to the other party setting
out the nature of the dispute and all other information relevant to the
dispute.

 

12.2              If a party gives or
receives a notice in accordance with clause 12.1, each party will promptly:

 

(a)                    refer the
dispute to an appropriate representative of the party who has authority to
settle the dispute on behalf of that party; and

 

(b)                   give written
notice to the other party of the name, position and contact details of the
party’s representative to whom the dispute has been referred.

 

12.3              Within 10 Working
Days’ of receipt of the written notice referred to in clause 12.2 above, the
parties’ representatives must meet or communicate (whether electronically, by
video-conference or otherwise) and undertake bona fide negotiations to resolve
the dispute.

 

12.4              In the event the
dispute is not satisfactorily resolved pursuant to clause 12.3 above, the
parties will refer the matter to their respective Chief Executive Officers who
shall within 10 Working Days meet or communicate (whether electronically, by
video-conference or otherwise) and undertake bona fide negotiations to resolve
the dispute,

 

12.5              If the parties are
not able to resolve the dispute under clause 12.4, and prior to applying to a
court for relief, the Chief Executive Officers will meet with an agreed neutral
party to assist them in reaching a satisfactory resolution to the dispute
through bona-fide negotiations.

 

12.6              Each party will bear
its own costs of complying with clauses 12.1 to 12.5.

 

12.7              Despite the
existence of a dispute, each party must continue to perform its obligations
under this Agreement.

 

12.8              The parties shall
exhaust the dispute resolution processes set out in clauses 12.1 to 12.5 prior
to applying to a court for relief for any matter arising under or in relation
to this Agreement or from exercising any other right it might have under this
Agreement, except where a party seeks urgent interim or interlocutory relief.

 

13                     Agency

 

12.1              The Consultant:

 

(a)                    acknowledges
that Sensis enters into this Agreement as agent for and on behalf of Telstra;
and

 

(b)                   agrees that:

 

(i)                        Sensis may
exercise on behalf of Telstra any rights granted to Telstra under this Agreement;
and

 

(ii)                     any act
performed by Sensis for and on behalf of Telstra in connection with this
Agreement shall be an act validly performed by Telstra pursuant to this
Agreement.

 

14                     Interpretation

 

14.1              The following words
have these meanings in this Agreement unless the contrary intention appears;

 

Additional
Services means the Services Sensis may require the Consultant
to provide under clause 1.3 of this Agreement, and which are described further
in paragraph 1.1 (b) of Schedule 1 (in the case of Services to be provided
during the Initial Cycle) and in paragraph 1.1 (c) of Schedule 1 (in the case
of Services to be provided during the Ongoing Phase).

 

Agreement
means the Commercial Terms, these terms and conditions, and the Schedules.

 

Background
IP means Intellectual Property rights which the Consultant
can establish came into existence other than in connection with the provision
of the

 

 

Services and which
are owned by or licensed to the Consultant. Background IP includes all
Intellectual Property rights in the DKB.

 

Brand
Package means the graphic element (html or gif) of the Yellow
Pages® online solution.

 

Commencement
Date means the date specified as such in Item 3 of the
Commercial Terms.

 

Commercial
Terms means the commercial terms specified on the front of
this Agreement.

 

Completion
Date means the date specified as such in Item 3 of the
Commercial Terms or as otherwise agreed.

 

Confidential
Information of a party means all information relating to that
party (and, in the case of Sensis, to Telstra) and its representatives or
customers which is or has been:

 

(a)                    disclosed to
the other party under or in connection with this Agreement; or

 

(b)                   learnt or
acquired by the other party in the performance of this Agreement:

 

other than any
such information which:

 

(c)                    is or becomes
part of the public domain otherwise than as a result of a disclosure in breach
of confidence;

 

(d)                   is or came
lawfully into the possession of the other party from another source and
otherwise than as a result of a disclosure in breach of an obligation of
confidence; or

 

(e)                    is or has been
independently developed by the other party.

 

Change
of Control shall be taken to occur if any person or entity
acquires any voting securities of the Consultant such that immediately after
the acquisition the person or entity has beneficial ownership of 51% or more of
the votes which are eligible to be cast in the election of directors or any
similar matter, provided, however, that when determining whether a Change of
Control has occurred, voting securities that are acquired in an acquisition by:

 

(i)                       an employee
benefit plan (or a trust forming a part thereof) maintained by (A) the
Consultant or (B) any corporation of other person of which a majority of its
voting power or its equity securities or equity interests are owned directly or
indirectly by the Consultant (a “Subsidiary”), or

 

(ii)                    the Consultant
or any Subsidiary;

 

shall not
constitute an acquisition for the purposes of this clause.

 

Corporations
Act means the Corporations Act 2001 (Cth).

 

Data
Services means the services described at paragraph 1.1 of
Schedule 1 based on the stage of the Agreement (Pilot, Initial Cycle, or
Ongoing),

 

Deliverables
means:

 

(a)                    the items
listed and described as Deliverables in paragraph 2 of Schedule 1; and

 

(b)                   any data,
document, report or other thing (in any form) created or developed by the
Consultant to meet the requirements of Sensis under this Agreement (including
Sensis’ advertiser records and the Taxonomy).

 

Display
Advertisement means a Yellow Pages® print
advertisement which:

 

(a)                    is available
in a variety of sizes;

 

(b)                   includes
business details; and

 

(c)       may contain textual and graphical
advertising content.

 

DKB
or Directory Knowledge Base means the software program and
database known as Directory Knowledge Base

 

 

which is owned by
the Consultant or its licensors.

 

Enhanced
DKB means the version of the DKB following incorporation of
the changes performed by the Consultant to the version of the DKB used for the
Initial Cycle.

 

GST
has the same meaning as in the A New Tax System (Goods and Services Tax) Act
1999 (Cth).

 

GST
Exclusive Consideration means any consideration payable under
this Agreement that either does not include an amount referable to GST or, if
the consideration is inclusive of GST, is that consideration excluding the
amount referable to GST using the rate of GST in force at the time the parties
agreed on the consideration.

 

In-column
Advertisement means a Yellow Pages® print
advertisement contained within the columns of a Yellow Pages® directory
and which includes business details and may contain textual and graphical
advertising content.

 

Initial
Cycle means the period (if any) during which the Consultant
is required to provide to Sensis the Additional Services described in paragraph
1.1(b) of Schedule 1.

 

A person (which
includes a body corporate) is Insolvent
if it:-

 

(a)                    makes or
commences negotiations with a view to making a general re-scheduling of its
indebtedness, a general assignment, scheme of arrangement or composition with
its creditors;

 

(b)                   takes any
corporate action, or any steps are taken or legal proceedings are started for:

 

(i)                        its
winding up, dissolution, liquidation, or re-reorganisation, other than to
reconstruct, merge or amalgamate while solvent; or

 

(ii)                     the appointment
of a controller, receiver, administrator, official manager, trustee, or other
similar officer, of it or of any of its revenues or assets; or

 

(c)                    seeks or is
granted protection from its creditors under any applicable legislation.

 

Intellectual
Property or IP means copyright (including moral rights); all
rights conferred under statute, common law or equity in relation to inventions
(including patents), registered and unregistered trademarks, registered and
unregistered designs, circuit layouts and confidential information; and all
other rights resulting from intellectual activity in the industrial,
scientific, literary or artistic fields.

 

Loss
means any loss, liability, cost or expense (including legal expenses on a full
indemnity basis).

 

Metro
means the six (6) Yellow Pages®
print directories which relate to the metropolitan markets of Australia.

 

Ongoing
Phase means the period (if any) during which the Consultant
is required to provide to Sensis the Additional Services described in paragraph
1.1(c) of Schedule 1.

 

Personal
Information means information or an opinion (including
information or an opinion forming part of a database), whether true or not, and
whether recorded in a material form or not, about a natural person whose
identity is apparent, or can reasonably be ascertained, from the information or
opinion.

 

Personnel
has the meaning given in clause 2.4.

 

Pilot
Project means the trial to be conducted by Sensis with the
assistance of the Consultant for the purpose of determining the viability of full
roll-out by Sensis of searchable content as part of its online directory
products.

 

 

Project
IP means any Intellectual Property arising from the
performance of the Services under the Agreement, but excludes the Deliverables.

 

Regional means the fifty (50) Yellow Pages® print directories which
relate to the regional markets of Australia.

 

Schedule means a schedule to this Agreement.

 

Sensis Content means any
advertising, data or other information which is the property of Sensis.

 

Sensis Ontology has the meaning
given in clause 3.3.

 

Services means the services described at paragraph 1 of Schedule 1, and includes
the Data Services and the Additional Services.

 

Special Conditions means the conditions specified in Item 5 of
the Commercial Terms.

 

Tax Invoice has the same meaning as in the A New Tax System (Goods and Services
Tax) Act 1999 (Cth).

 

Taxonomy means the Yellow Pagesâ directory headings, properties, normalised
terms and synonyms and the relationships between these, as developed by the
Consultant for Sensis under this Agreement.

 

Telstra means Telstra Corporation Limited (ABN 33 051 775 556).

 

Working Day means Monday to Friday, excluding public holidays in Victoria,
Australia.

 

Work means a material form in which Project IP vests including any work
specified in Item 7 of the Commercial Terms and includes a substantial part or
adaptation of it.

 

14.2              In this Agreement
unless the contrary intention appears, a reference to:

 

(a)                    the Consultant
includes a reference to the Consultant’s employees, representatives and/or
sub-contractors as the case requires;

 

(b)                   this Agreement
or another instrument includes any variation or replacement of either of them;

 

(c)                    a “person”
includes a firm, a body corporate, an unincorporated association or an
authority;

 

(d)                   the singular
includes the plural and vice versa;

 

(e)                    words such as “including”
and “for example” does not, and is not intended to, result in those words being
taken to be words of limitation; and

 

(f)                      time is a
reference to the time in Melbourne, Australia.

 

14.3              Headings are
inserted for convenience and do not affect the interpretation of this
Agreement.

 

 

Schedule
1 - Services and Timetable

 

1         Services

 

1.1      General description of the Services

 

Services
to be provided in connection with the Pilot Project

 

(a)                    The Consultant
will provide keyword processing services in relation to content which is owned
by or licensed to Sensis, including print display advertisements, print
in-column advertisements, online solutions (incorporating business profiles
& brand packages), websites and adPoints.

 

For the Pilot
Project, the Consultant will receive from Sensis print display advertisements,
print in-column advertisements, online solutions (incorporating business
profiles and brand packages) and adPoints, not to exceed 25,000 units in
various file formats including; eps and xml.

 

As part of the
Pilot Project, the Consultant will be required to process a maximum of 25,000
advertisements under one level 1 heading (H1) to be determined by Sensis. This
H1 is a high level heading which acts as an umbrella heading for several Yellow
Pages® directories headings. The HI that has been selected for the
Pilot Project is “Automotive”. The five Yellow Pages® directory
headings that have been selected for the Pilot Project as part of the H1 “Automotive”
are:

 

•                             21431
- Motor cars new

 

•                             23825
- Brake & Clutch Services

 

•                             18430
– Car Hire &/or Minibus Rental

 

•                             24058
– Tyres Retail

 

•                             23493
– Insurances – Motor Cars

 

The specific
Services to be provided by the Consultant as part of the Pilot Project will
consist of the following:

 

1.                          Selecting
(in conjunction with Sensis) an H1 for the Pilot Project.

 

2.                          Adapting
the Consultant’s Directory Knowledge Base (“DKB”)
for the H1 to the Australian market. This process involves putting Sensis
content through the Consultant’s DKB and then identifying content which is
particular and unique to the Australian market and adapting the DKB
accordingly.

 

3.                          Processing
advertiser content provided by Sensis.

 

4.                          Aggregating
content.

 

5.                          Tagging
and normalising data into the DKB ontology which has been

adapted for the Australian market.

 

6.                          Delivering
XML files of tagged advertisements to Sensis.

 

 

Additional Services to be provided in
connection with the Initial Cycle

 

(b)                   Sensis may, by
written notice to the Consultant under clause 1.3 of this Agreement, require
the Consultant after completion of the Pilot Project to provide further
Services to Sensis in respect to more advertisements.

 

The specific
Services to be provided by the Consultant as part of the Initial Cycle will
consist of the following:

 

1.                          Adapting
the Consultant’s Directory Knowledge Base (“DKB”) for the Australian market.
This process involves putting Sensis content through the Consultant’s DKB and
then identifying content which is particular and unique to the Australian
market and adapting the DKB accordingly.

 

2.                          Processing
advertiser content provided by Sensis.

 

3.                          Aggregating
content.

 

4.                          Tagging
and normalising data into the DKB ontology which has been adapted for the
Australian market.

 

5.                          Delivering
XML files of tagged advertisements to Sensis.

 

Additional
Services to be provided in connection with the Ongoing Phase

 

(c)                    Sensis may, by
written notice to the Consultant under clause 1.3 of this Agreement, require
the Consultant after completion of the Initial Cycle to provide further
Services to Sensis in respect to more advertisements.

 

The Services to be provided by the Consultant during
the Ongoing Phase will be the same as those services provided by the Consultant
during the Initial Cycle and will relate to all new advertisements and
advertisement changes received by Sensis following completion of the Initial
Cycle, except that Sensis may at its sole option require the Consultant to use
the Enhanced DKB in connection with its Service delivery. If Sensis requires
the Consultant to use the Enhanced DKB, Sensis will be required to pay to the
Consultant the rates described in paragraph 3(c) of Schedule 2.

 

1.2      Description of the Data Services

 

With effect from the Commencement Date of the Initial
Cycle (as set out in the Commercial Terms), the Consultant will provide content
production services to Sensis in the form of keyword extraction services (“Data Services”).

 

The Data Services will consist of keyword
extraction of up to approximately 643,878 units (depending on whether Sensis
requests any Additional Services under paragraph l.1(b) or (c) above) from
input files (as provided by Sensis under paragraph 1.1 above) set out in the
table below:

 

	
  Content
  Type

  	
   

  	
  Count*

  	
   

  	
  File Format

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Metro Display Advertisements

  	
   

  	
  101,301

  	
   

  	
  Thin EPS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Metro In-column advertisements

  	
   

  	
  126,626

  	
   

  	
  XML

  	
   

  

 

 

	
  Content Type

  	
   

  	
  Count*

  	
   

  	
  File Format

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Regional
  Display Advertisements

  	
   

  	
  98,699

  	
   

  	
  Thin
  EPS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Regional
  In-column advertisements

  	
   

  	
  123,374

  	
   

  	
  XML

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Brand
  Packages

  	
   

  	
  37,911

  	
   

  	
  HTML
  & GIF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business
  profiles

  	
   

  	
  37,911

  	
   

  	
  XML

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AdPoints

  	
   

  	
  93,056

  	
   

  	
  XML

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Websites

  	
   

  	
  52,807

  	
   

  	
  HTML

  	
   

  

 

*The Consultant
acknowledges that, while Sensis has used reasonable efforts to accurately
estimate the number of units to be delivered by the Consultant, some changes to
this estimate may occur.

 

The Data Services also include the collection of font
size, font type and position in the advertisement beginning in the Initial
Cycle.

 

The Deliverables must be in the form described
in Schedule 4.

 

1.3      Production Reporting

 

With effect from the Commencement Date of the Initial
Cycle (as set out in the Commercial Terms), the Consultant will provide Sensis
with a daily report setting out the status of the data being prepared by the
Consultant. The form of the report will be as agreed between Sensis and the
Consultant from time to time. The report may be produced manually, or via an
automated system.

 

1.4      Personnel

 

Personnel numbers

 

(a)                    Consultant
must commit sufficient Personnel to the provision of the Services so that it is
able to provide the Services and the Deliverables in accordance with the
timetable set out in paragraph 2 below (as amended and varied from time to
time).

 

Key Personnel

 

(b)                   Without
limiting the Consultant’s obligations under paragraph 1.4(a) above, the
Consultant must ensure that, until the expiry or termination for any reason of
this Agreement or until the relevant Key Personnel has completed his or her
specific role in the delivery of the Services (whichever occurs earlier), the
Key Personnel (if any) are engaged in the provision of the Services to Sensis.
The Key Personnel are Mike Bauer, Sean Bowman and Jamie Fergusson.

 

 

Consultant’s obligations in relation to
Personnel

 

(c)                    The Consultant
acknowledges that:

 

(i)                        it is
solely responsible for the acts and omissions of all Personnel while they are
involved in providing the Services to Sensis; and

 

(ii)                     subject to
paragraph 1.4(g) below, all Personnel are and will remain at all times employees
or contractors of the Consultant (and will not be or be deemed to be employees
or contractors of Sensis or Telstra).

 

(d)       On request from Sensis, the Consultant
must

 

(i)                        give
Sensis details of the skills, qualifications and experience of any Personnel;

 

(ii)                     procure that
all Personnel sign individual confidentiality agreements with Sensis in a form
approved in advance by Sensis; and

 

(iii)                  promptly remove
or replace (at Sensis’ election) any Personnel.

 

Change
of Personnel by the Consultant

 

(e)                    Unless requested
to do so by Sensis, the Consultant will only be entitled to change a person
named as Key Personnel if he or she leaves the employment of the Consultant or
is unable to work by reason of illness or incapacity or by prior written
agreement with Sensis.

 

(f)                      Without
limiting the requirements under paragraph (e) above, the Consultant must obtain
Sensis’ approval before replacing any Personnel and must ensure that all
replacement Personnel are suitably qualified and experienced.

 

Insolvency and breach

 

(g)                   If the
Consultant is or becomes Insolvent or this Agreement is terminated by Sensis
for breach, Sensis reserves the right to approach any Personnel (including the
Key Personnel) to offer him or her a position as an employee or contractor of
Sensis and the Consultant must not do anything to binder the acceptance of such
an offer by those Personnel.

 

2         Timetable

 

Subject to
paragraph 3 below, the Consultant must perform the Services in accordance with
the following timetable:

 

Metro

 

	
  Deliverable

  	
   

  	
  Responsibility

  	
   

  	
  Delivery
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pilot
  Data Extract (business profiles, brand packages, in-column ads, adPoints)

  	
   

  	
  Sensis

  	
   

  	
  03/10/2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pilot
  Data Extract (display ads)

  	
   

  	
  Sensis

  	
   

  	
  15/10/2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pilot
  Data

  	
   

  	
  Aptas

  	
   

  	
  06/11/2003

  	
   

  

 

 

	
  Deliverable

  	
   

  	
  Responsibility

  	
   

  	
  Delivery
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Cycle
  Metro Data Extract (business profiles, brand packages, in-column ads, adPoints)

  	
   

  	
  Sensis

  	
   

  	
  20/11/2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Cycle
  Metro Data Extract (display ads)

  	
   

  	
  Sensis

  	
   

  	
  17/12/2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Cycle
  Metro Data

  	
   

  	
  Aptas

  	
   

  	
  06/01/2003

  	
   

  

 

Regional

 

(See table on next
page)

 

 

Regional

 

	
  Yellow Pages Regional Processing
  Schedule

  
	
   

  
	
  DIRECTORY

  	
   

  	
  Deliver to Aptas

  	
   

  	
  Deliver to Sensis

  
	
  N01Y

  	
   

  	
  Tamworth

  	
   

  	
  28-Dec-03

  	
   

  	
  28-Jan-03

  
	
  T03Y

  	
   

  	
  Launceston

  	
   

  	
  28-Dec-03

  	
   

  	
  28-Jan-03

  
	
  N05Y

  	
   

  	
  Dubbo

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  N09Y

  	
   

  	
  Kempsey

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  N12Y

  	
   

  	
  Bathurst

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  N14Y

  	
   

  	
  Alburv

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  Q04Y

  	
   

  	
  Toowoomba

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  N17Y

  	
   

  	
  Windsor

  	
   

  	
  12-Jan-04

  	
   

  	
  12-Feb-03

  
	
  Q07Y

  	
   

  	
  Beaudesert

  	
   

  	
  12-Jan-04

  	
   

  	
  12-Feb-03

  
	
  V07Y

  	
   

  	
  Wangaratta

  	
   

  	
  12-Jan-04

  	
   

  	
  12-Feb-03

  
	
  Q08Y

  	
   

  	
  Roma

  	
   

  	
  19-Jan-04

  	
   

  	
  19-Feb-03

  
	
  S06Y

  	
   

  	
  Pt Augusta

  	
   

  	
  19-Jan-04

  	
   

  	
  19-Feb-03

  
	
  N13Y

  	
   

  	
  Penrith

  	
   

  	
  26-Jan-04

  	
   

  	
  26-Feb-03

  
	
  N04Y

  	
   

  	
  Canberra

  	
   

  	
  26-Jan-04

  	
   

  	
  26-Feb-03

  
	
  S05Y

  	
   

  	
  Barossa Valley

  	
   

  	
  2-Feb-04

  	
   

  	
  02-Mar-03

  
	
  S07Y

  	
   

  	
  South East

  	
   

  	
  2-Feb-04

  	
   

  	
  02-Mar-03

  
	
  S08Y

  	
   

  	
  Yorke Peninsula

  	
   

  	
  2-Feb-04

  	
   

  	
  02-Mar-03

  
	
  V08Y

  	
   

  	
  Shepparton

  	
   

  	
  2-Feb-04

  	
   

  	
  02-Mar-03

  
	
  Q06Y

  	
   

  	
  Townsville

  	
   

  	
  7-Feb-04

  	
   

  	
  07-Mar-03

  
	
  V03Y

  	
   

  	
  Ballarat

  	
   

  	
  7-Feb-04

  	
   

  	
  07-Mar-03

  
	
  N07Y

  	
   

  	
  Wollongong

  	
   

  	
  16-Feb-04

  	
   

  	
  16-Mar-04

  
	
  N10Y

  	
   

  	
  Broken Hill

  	
   

  	
  16-Feb-04

  	
   

  	
  16-Mar-03

  
	
  N19Y

  	
   

  	
  Cooma

  	
   

  	
  16-Feb-04

  	
   

  	
  16-Mar-03

  
	
  Q03Y

  	
   

  	
  Maryborough

  	
   

  	
  16-Feb-04

  	
   

  	
  16-Mar-03

  
	
  Q01Y

  	
   

  	
  Cairns

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  T04Y

  	
   

  	
  Burnie

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  V05Y

  	
   

  	
  Warrnambool

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  V10Y

  	
   

  	
  Mildura

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  W03Y

  	
   

  	
  South Western

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  N06Y

  	
   

  	
  Lismore

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  N11Y

  	
   

  	
  Muswellbrook

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  N18Y

  	
   

  	
  Campbelltown

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  Q09Y

  	
   

  	
  Sunshine Coast

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  V01Y

  	
   

  	
  Bairnsdale

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  W01Y

  	
   

  	
  Great Northern

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  W02Y

  	
   

  	
  Central & East

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  N20Y

  	
   

  	
  Bega

  	
   

  	
  27-Mar-04

  	
   

  	
  27-Apr-03

  
	
  V09Y

  	
   

  	
  Mornington

  	
   

  	
  27-Mar-04

  	
   

  	
  27-Apr-03

  
	
  V02Y

  	
   

  	
  Geelong

  	
   

  	
  1-Apr-04

  	
   

  	
  01-May-03

  
	
  V04Y

  	
   

  	
  Bendigo

  	
   

  	
  1-Apr-04

  	
   

  	
  01-May-03

  
	
  V06Y

  	
   

  	
  Warragul

  	
   

  	
  1-Apr-04

  	
   

  	
  01-May-03

  
	
  S09Y

  	
   

  	
  Northern Territory

  	
   

  	
  5-Apr-04

  	
   

  	
  05-May-03

  
	
  N02Y

  	
   

  	
  Wagga

  	
   

  	
  11-Apr-04

  	
   

  	
  11-May-03

  
	
  N16Y

  	
   

  	
  Nowra

  	
   

  	
  26-Apr-04

  	
   

  	
  26-May-03

  
	
  N08Y

  	
   

  	
  Central Coast

  	
   

  	
  5-May-04

  	
   

  	
  05-Jun-03

  
	
  N15Y

  	
   

  	
  Goulburn

  	
   

  	
  5-May-04

  	
   

  	
  05-Jun-03

  
	
  Q10Y

  	
   

  	
  Mackay

  	
   

  	
  5-May-04

  	
   

  	
  05-Jun-03

  
	
  Q02Y

  	
   

  	
  Rockhampton

  	
   

  	
  12-May-04

  	
   

  	
  12-Jun-03

  
	
  Q05Y

  	
   

  	
  Gold Coast

  	
   

  	
  13-May-04

  	
   

  	
  13-Jun-03

  
	
  N03Y

  	
   

  	
  Newcastle

  	
   

  	
  23-May-04

  	
   

  	
  23-Jun-03

  

 

 

3         Delay

 

3.1                    The Consultant
must give notice to Sensis as soon as it becomes apparent that it will not be
able to meet a particular deadline set out in paragraph 2 above. The notice
must be in writing and include details of:

 

•                            the
delay;

 

•                            the
cause or causes (whether because of any act or omission of the Consultant,
Sensis, their representatives, a combination or otherwise); and

 

•                            the
steps the Consultant is taking to minimise the delay.

 

3.2                    If the
Consultant gives Sensis a notice under paragraph 3.1 above the parties must, at
the request of either party, meet as soon as practicable, in good faith, with a
view to revising the delivery dates for the various deliverables (as set out in
paragraph 2 above). Unless and until the parties agree on revised delivery
dates, the delivery dates set out in paragraph 2 will continue to apply.

 

3.3                    If Sensis
delays the delivery of the input data described in paragraph 1 above by more
than one (1) Working Day for the Pilot Project or more than three (3) Working
Days for the Initial Cycle or the Ongoing Phase, then the project deliverable
date will be pushed out by the number of Working Days that Sensis delays the
delivery of the input data described in paragraph 1 above.

 

 

Schedule
2 - Fees and payment

 

1                            Fees

 

(a)                    (Pilot Project) Sensis agrees to pay the
Consultant a Fee of [***] (inclusive of all taxes and other charges) in
consideration for the Services to be provided by the Consultant under paragraph
1.1(a) of Schedule 1 as part of the Pilot Project.

 

(b)                   (Initial Cycle) If Sensis requires the
Consultant to provide Additional Services in accordance with paragraph l.l(b)
of Schedule 1 during or in connection with the Initial Cycle, the fees for such
Additional Services shall be based on the per unit fee (inclusive of all taxes
and other charges) specified in paragraph 3 of this Schedule 2, with the
following exceptions:

 

1.                         The Fee
for extracting up to the first [***] .eps files shall be [***] (inclusive of
all taxes and other charges). If Sensis requires the Consultant to process less
than [***] .eps files as part of the Initial Cycle, it shall receive a credit
for

 

a.                         the
number of .eps files (out of the original [***]) not actually extracted, as
long as the actual number of .eps files which Sensis requires the Consultant to
process exceeds [***]; and

 

b.                        the number
of .eps files (out of the original [***]) not actually normalized, as long as
the actual number of .eps files which Sensis requires the Consultant to
normalize exceeds [***]

 

Such credits shall
be based on the rate cards in Section 3, paragraphs 4 (a) and (b) of this
Schedule 2.

 

Credits shall only
be applied if Sensis requests the Consultant to provide Services to the entire
Sensis asset base described in paragraph 1.2 of Schedule 1.

 

2.                         During
the Initial Cycle, any websites extracted shall be done at a rate equivalent to
the per unit rate for display ads for up to the first [***] websites.

 

3.                         An
estimate of the cost of the Initial Cycle is provided in Schedule 4. This
estimate is not binding on either party. Based upon that estimate, the fees for
the initial Cycle in excess of the initial payment specified in paragraph
1(b)(1) above will be approximately [***]. The variance, if any, from this
estimate will result from changes to the estimated number of units specified in
section 1.2 of Schedule 1.

 

(c)                    (Ongoing Phase) If Sensis requires the
Consultant to provide Additional Services in accordance with paragraph 1.1(c)
of Schedule 1 during or in connection with the Ongoing Phase, then the Fees for
those Additional Services will be the per unit fee (inclusive of all taxes and
other charges) specified in paragraph 3 of this Schedule 2.

 

2         Payment Schedule

 

(a)                    (Pilot Project) The Fees payable by Sensis
under paragraph 1(a) of this Schedule 2 will be payable by Sensis in accordance
with the payment schedule set out below:

 

 

(i)                        [***]
payable on execution of this Agreement; and

 

(ii)                     [***] payable
on the issue date of an acceptance certificate for the Deliverables for the
Pilot Project under either paragraph 2.3 or 2.5(a) of Schedule 3.

 

(b)                   (Initial Cycle) The Fees payable by Sensis
under paragraph 1(b) of this Schedule 2 will be payable by Sensis in accordance
with the payment schedule set out below:

 

(i)                        [***] is
payable on the Commencement Date of the Initial Cycle; and

 

(ii)                     the balance
of any Fees earned over and above item 2(b)(i) of this Schedule 2 will be
payable on the issue of an acceptance certificate for the Deliverables for the
Initial Cycle under either paragraph 2.3 or 2.5(a) of Schedule 3.

 

(c)                    (Ongoing Phase) The Fees payable by Sensis
under paragraph 1(c) of this Schedule 2 will be payable by Sensis monthly in
arrears.

 

3                            Per
Unit Pricing Schedule*

 

(a) Extraction Fees

 

	
  Volume Per Year

  	
   

  	
  Display Ads or

  Business Profiles

  	
   

  	
  In-Column, Ad Points

  or Brand Packages

  	
   

  	
  Websites

  	
   

  
	
  1-50,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  50,001-100,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  100,001-250,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  250,000 +

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

(An additional fee of US$0.50 will
be charged for extraction of any non-readable assets.)

 

(b) Base DKB Normalization Fees

 

	
  Volume Per Year

  	
   

  	
  Display Ads, Business Profiles

  or Websites

  	
   

  	
  In-Column, Ad Points or

  Brand Packages

  	
   

  
	
  1-50,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  50,001-100,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  100,001-250,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  250,000 +

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

 

(c) Enhanced DKB Fees per Business

 

	
  Year 2004

  	
   

  	
  [***]

  
	
  Year 2005

  	
   

  	
  [***]

  

 

* Following
completion of the Initial Cycle, the Consultant and Sensis agree to review the
rates set out in Per Unit Pricing Schedule above. The Consultant agrees that
any new pricing for the Ongoing Phase will not exceed the rates set out in Per
Unit Pricing Schedule above. If the parties cannot agree on new pricing, the
pricing set out above will continue to apply.

 

4.                         Set off

 

If the parties
enter into negotiations for a licence in and to the Consultant’s Intellectual
Property including, but not limited to, Consultant’s DKB, the parties will
negotiate in good faith with a view to applying up to [***] of the Fees
actually paid under this Agreement for the Pilot Project and the Initial Cycle
as “credits” against any amount payable by Sensis under the licence agreement.

 

 

Schedule
3 - Acceptance Criteria

 

1                            Acceptance
Criteria

 

1.1                    The content of
the Deliverables provided to Sensis by the Consultant must:

 

(a)                    contain all
agreed inputs;

 

(b)                   be in the
correct file format (as agreed in paragraph 1.2 of Schedule 1);

 

(c)                    accurately
reflect the source data provided to the Consultant by Sensis with the following
quality assurance:

 

(i)                        100% of
files delivered are returned;

 

(ii)                     90% of
eligible text in each advertisement is extracted;

 

(iii)                  98% of spelling
mistakes in eligible text are corrected and indexed; and

 

(iv)                 95% of eligible
terms are normalised correctly.

 

For the purposes
of this paragraph l.l(c):

 

(i)                       “eligible
terms” means any text in an advertisement that may constitute meaningful
content; and

 

(ii)                    “normalised
correctly” means associated with a generic term,

 

for ontology
development and keyword extraction.

 

2                            Acceptance
Testing

 

Certification

 

2.1                    Once the
Consultant has completed development of the Deliverables, the Consultant must promptly
and at its own cost:

 

(a)                    notify Sensis;
and

 

(b)                   conduct such
tests as are necessary to verify that the Deliverables comply with the
Acceptance Criteria (as set out in paragraph 1 of this Schedule 3) and, upon
request by Sensis, provide Sensis with copies of all data, results and other
information relating to the tests; and

 

(d)                   upon successful
completion of each such test, certify in writing to Sensis that the Deliverable
meet the Acceptance Criteria.

 

Sensis
tests

 

2.2                    Following
receipt by Sensis of a certificate under paragraph 2.1(d) above, Sensis may, at
Sensis’ sole discretion and cost, conduct its own acceptance tests in relation
to the Deliverables to confirm that the Deliverables comply with the Acceptance
Criteria (as set out in paragraph 1 of this Schedule 3). The Consultant must
provide such reasonable assistance as may be requested by Sensis to enable
Sensis to conduct these acceptance tests (eg providing Sensis with access to
its systems and the DKB).

 

 

Acceptance
Certificate

 

2.3                    If Sensis is
satisfied that the Deliverables meet the Acceptance Criteria (whether on the
basis of the tests conducted by the Consultant, or by Sensis, or otherwise),
Sensis will provide a written acceptance certificate to the Consultant.

 

Failure
of acceptance testing

 

2.4                    If the
acceptance tests conducted by the Consultant or Sensis, or the details provided
to Sensis under paragraph 2.1(b) above, reveal that a Deliverable has an error
or defect, or otherwise does not meet any of the Acceptance Criteria, the
Consultant must, at its own cost, promptly rectify and correct that error. Once
the error(s) have been rectified, the Consultant must, and Sensis may, repeat
the acceptance tests contemplated under paragraphs 2.1 and 2.2.

 

2.5                    If Sensis is
satisfied on the basis of these additional acceptance tests that:

 

(a)                    the
Deliverables meet the Acceptance Criteria, Sensis will provide a written acceptance
certificate to the Consultant.

 

(b)                   the
Deliverables do not meet the Acceptance Criteria, Sensis may, at its option:

 

(i)                        accept the
Deliverables “as is” at an agreed reduction in the Fees payable by Sensis under
Schedule 2; or

 

(ii)                     terminate
this agreement by written notice to the Consultant (in which case, Sensis will
not be required to pay any post-acceptance component of the Fees).

 

(c)                    If Sensis
exercises a right under paragraph 2.5(b)(i) and the parties are unable to agree
on an appropriate reduction in Fees within 10 Working Days’ of Sensis
exercising such a right, then Sensis may terminate this agreement by written
notice to the Consultant (in which case, Sensis will not be required to pay any
post-acceptance component of the Fees).

 

Further
tests

 

2.5                    Sensis may, at
its own cost, conduct tests in relation to the Deliverables at any time during
the term of this agreement. If such tests reveal that any of the Deliverables
are failing or have failed to meet the Acceptance Criteria, Sensis will notify
the Consultant and the Consultant must, at its own cost, promptly rectify that
failure.

 

 

Schedule 4 – Initial
Cycle Cost Estimate

 

 

	
  Initial Cycle

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Display - EPS

  	
   

  	
   

  	
   

  	
   

  
	
  Regional display

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Metro display

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Brand packages

  	
   

  	
  [***]

  	
   

  	
  ([***] Normalization)

  
	
  subtotal

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  
	
  Regional incolumn (XML)

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Metro Incolumn (XML)

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Business profiles (XML)

  	
   

  	
  [***]

  	
   

  	
   

  
	
  AdPoint (XML)

  	
   

  	
  [***]

  	
   

  	
   

  
	
  subtotal

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Extraction

  	
   

  	
   

  	
   

  	
   

  
	
  Proposal Includes up to 250,000 Display

  	
   

  	
   

  	
   

  	
   

  
	
  Display ads

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Brand Packages

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Credit of ads

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Revenue credit

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base DKB - Normalizing

  	
   

  	
   

  	
   

  	
   

  
	
  Proposal includes up to 250,000 Display

  	
   

  	
   

  	
   

  	
   

  
	
  Display ads

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Business Profiles

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Credit of ads

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue credit

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Extraction - Other

  	
   

  	
   

  	
   

  	
   

  
	
  Regional incolumn (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Metro incolumn (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Business profiles (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  AdPoint (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base DKB Normalizing- Other

  	
   

  	
   

  	
   

  	
   

  
	
  Regional incolumn (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Metro Incolumn (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Brand Packages

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  AdPoint (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-readable premium – 5%

  	
   

  	
   

  	
   

  	
   

  
	
  Display

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Incolumn

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal without Websites

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Initial Payment

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  TOTAL WITHOUT WEBSITES

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Websites

  	
   

  	
   

  	
   

  	
   

  
	
  Extraction

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Normalization

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  TOTAL Websites

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
  [***][***] CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF
THE SECURITIES ACT OF 1933, AS AMENDED.

 

Exhibit 10.40

 

ADVERTISING
AGREEMENT

 

This Advertising Agreement (the “Agreement”), effective as of December 10,
2004, is made and entered into by and between MyAgreeGuide.Com, Inc. a
Nevada corporation with its principal
place of business located at 1240 East 100 South, Suite 5, St. George,
Utah 84790 (“Company”) and Six Continents Hotels, Inc., a Delaware
corporation with its principal place of business located at Three Ravinia
Drive, Suite 100, Atlanta, Georgia 30346-2149 (“SCH”), pursuant to the
following recitals and clauses;

 

WHEREAS, SCH owns several hotel brands and owns, manages, and
franchises hotels using those brand names internationally (“IHG”);

 

WHEREAS, Company desires to assist SCH in the marketing of its hotel
brands by providing specified services upon the terms and conditions set forth
herein;

 

NOW, THEREFORE, in consideration of the mutual promises contained
herein and for good and valuable
consideration, the parties agree as follows:

 

1.                         Services. Company has the ability to provide the
comprehensive services described in this Agreement. In accordance with the
terms and conditions of this Agreement, Company shall provide SCH with services
and SCH shall compensate Company for the services, as described in Exhibit “A,”
which is attached hereto and incorporated herein as if fully rewritten herein
(the “Services”). Any additional standard Company terms shall be attached
hereto in Exhibit “B”. In the event of a conflict in the provisions of
this Agreement and any Exhibits, this Agreement shall prevail. Any new programs
or services to be added to this Agreement shall be added as an Exhibit to
this Agreement and shall be in the same form as Exhibit “A”. Such Exhibit shall be in writing
signed by Company and SCH and shall incorporate the terms of this Agreement.

 

2.                         Engagement and Authorization to Use Third Parties. Company
is retained and appointed by SCH to develop, perform and carry out the
services set forth and described in this Agreement. In order to perform the
services, Company is authorized to enter into such third party contracts as may be
reasonably necessary to carry out the purposes of this Agreement. Except as
specifically set forth herein to the contrary, Company shall be liable to all
third parties employed by the company.

 

3.                         Warranty. Company warrants that the purchased services will
be original, will conform to stated specifications, will comply with
descriptions in Company’s sales materials and brochures, will match Company’s
samples, will conform to all applicable codes and standards, and will
fulfill all prior representations by Company, its employees and agents. Company
warrants that it has obtained appropriate releases granting SCH complete and
unrestricted rights (unless otherwise specified in writing and attached to this
Agreement) to use the services provided. The above warranty shall be for the
benefit of SCH, its affiliates, successor and assigns. If Company’s standard
warranty provides longer or better protection than the above warranty, then the
Company’s standard warranty shall apply. The inspection or acceptance of
services shall not be a waiver of rights under this warranty. This warranty
shall survive delivery and acceptance of the purchased services.

 

 

4.                         Audit. Company shall keep, maintain and preserve at its
principal place of business for at least two (2) years following
termination or expiration of the term of this Agreement or any renewal(s)
hereof, complete and accurate records of accounts related to services under
this Agreement. Such records and accounts shall be available for inspection and
audit at any time or times during or after the term of this Agreement or any
renewal(s) hereof at the sole expense of SCH during reasonable hours upon
notice by SCH or its designees. Company agrees to cooperate with SCH or
designees of SCH in the performance of its duties of inspection and audit.

 

5.                         No Partnership. This Agreement does not constitute and shall
not be construed as constituting a partnership or joint venture between Company
and SCH. Neither party shall have the right to obligate or bind the other party
in any manner whatsoever. Nothing herein contained shall give, or is intended
to give, any rights of any kind to any third persons.

 

6.                         Assignment. Any assignment or transfer of this Agreement, in
whole or in part, or of any interest herein, without SCH’s prior written
consent shall be void. SCH may assign this Agreement to a parent,
subsidiary, or affiliate corporation.

 

7.                         Ownership of Intellectual Property. All advertising and
marketing content provided by SCH and the component parts thereof, including
without limitation, all ideas, plans, copy, slogans, creative concepts, videos,
research, photographs, advertisements, commercials, musical compositions or other materials submitted, created,
developed or supplied by SCH (the “Works”) shall be and remain SCH’s sole and
exclusive property and shall be dealt with by Company as such. Company shall
sign or cause to be signed such further documents as SCH may from time to
time request to evidence this fact.

 

8.                         Use of Trademarks. Company shall have no right to use any of
SCH’s intellectual property, including without limitation, trademarks, service
marks, or copyrights of SCH or any of its subsidiaries or affiliates, except
with the prior written approval of SCH. Company acquires no rights in any
intellectual property, including without limitation, any trademarks, service
marks or copyrights of SCH, its subsidiaries or affiliates. All usage shall
inure to the benefit of SCH.

 

9.                         Internet Keyword Marketing - Company shall not purchase or
sell placement rights for any of the Marks for Internet keyword marketing
purposes.

 

10.                   Brand Loyal Marketing - Except as specifically permitted by
this Agreement, Company shall not target, solicit, or otherwise make use of any
date to seek business from, or offer business to,  IHG-brand loyal customers (i.e., customers
who have expressed a preference for an IHG brand).

 

11.                   Predatory Advertising - Company shall not use, and shall
prohibit all web sites within its control from using, any predatory advertising
methods designed to generate traffic
from IHG sites, or any other sites that exclusively promote IHG brands, for
which Company has no contractual rights for the online promotion of any
products or services other than IHG hotels. A predatory advertising method is
an advertising method that creates or overlays links or banners on web sites,
spawns browser windows, or utilizes any other method to generate traffic from a
web site without that web site owner’s knowledge, permission, and
participation.

 

 

12.                   Term. This Agreement shall become effective and shall
terminate on the dates stated in Exhibit A. Termination of this Agreement
shall not extinguish the rights or obligations of the parties hereunder with
respect to indemnification, ownership and disposition of information,
confidentiality, and accounting.

 

13.                   Termination for Cause and Default. If Company fails to
comply with any provision under this Agreement, SCH may terminate this
Agreement. In order to terminate this Agreement, SCH must give Company written notice
at the breach and thirty (30)
days to cure such breach. If Company fails to cure the breach within the period
set forth immediately above or the breach cannot be cured, this Agreement shall
be deemed terminated on the business day after the expiration of the period set
forth above.

 

14.                   Company Indemnity. Company will indemnify and hold harmless
SCH, its parents, divisions, subsidiaries, licensees, and affiliates, and their
officers, directors, employees, agents, successors and assigns (collectively, “Indemnified
Parties” and each of the foregoing being hereinafter referred to individually
as “Indemnified Party”), against, and hold them harmless from, all liability to
third parties and promptly reimburse them for all costs and expenses (including,
without limitation, all settlements, judgments, fines, damages, reasonable
legal fees, court costs, expert fees, etc.) by reason of any claim, demand, tax,
penalty or judicial or administrative proceeding or investigation (even where
negligence of the Indemnified Party it also alleged) arising from or in
connection with:

 

A.                      any
act omission or obligation of the Company, its parent, subsidiaries, licensees,
affiliates, subcontractors, and suppliers and their respective officers,
directors, employees, agents or successors or assigns (“Company”);

 

B.                        any
service provided by the Company;

 

C.                        any
failure to perform or breach of this Agreement by the Company;

 

D.                       any
injury or death to persons or damage to property, sustained by any person that
is a result of the alleged acts or omissions of the Company, including theft;

 

E.                         any
and all claims alleging violation of Company’s Privacy Policy or misuse or
Personal information of any customer or guest, or prospective customer or
guest;

 

F.                         any
violation or claimed violations of any third party’s trade secrets, proprietary
information, trademarks, copyrights, patent rights, or other Intellectual
property rights;

 

G.                        Company’s
failure to perform all obligations owed to Company’s employees, including
any claim that employees of Company might have or make for privilege,
compensation, or benefits under any employee benefit plan: and

 

H.                       any
and all sums due and owing to the Internal Revenue Service (IRS) for
withholding, FICA, unemployment, or any other state or federal taxes. Company
further agrees to timely make such withholdings, deposits, and payments to the
IRS and appropriate state authorities for all employment related taxes
withholding, FICA, and other taxes.

 

 

In any event, SCH will have the right, through counsel of its choice
and at Company’s expense, to conduct or participate in the defense and to
control any matter to the extent it could directly or indirectly affect SCH.
Company shall cooperate with such defense to the fullest extent possible.
Company will also reimburse SCH for all payments of money (including without
limitation, all costs, expenses, fines, damages, legal fees, court costs, settlements, judgments,
etc.) incurred by SCH to defend and protect itself from, or to remedy, defaults
of Company under this Agreement.

 

15.                   SCH Indemnity. SCH will indemnify and hold harmless the
Company, its parents, divisions, subsidiaries, licensees, and affiliates, and
their officers, directors, employees, agents, successors and assigns
(collectively, “Indemnified Company Parties” and each of the foregoing being
hereinafter referred to individually as “Indemnified Company Party”), against,
and hold them harmless from, all liability to third parties and promptly
reimburse them for all costs and expenses (including, without limitation, all
settlements, judgments, fines, damages, reasonable legal fees, court costs,
expert fees, etc.) by reason of any claim, demand, tax, penalty or judicial or
administrative proceeding or Investigation (even where negligence of the
Indemnified Company Party is also alleged) arising from or in connection with:

 

A.                      any
failure to perform or breach of this Agreement by SCH;

 

B.                        any
and all claims of SCH alleging violation of SCH’s Privacy Policy or misuse or
Personal Information of any customer or guest, or prospective customer or
guest;

 

C.                        any
violation or claimed violations of any third party’s trade secrets, proprietary
information, trademarks, copyrights, patent rights, or other Intellectual
property rights by SCH:

 

In any event, under this Indemnity agreement the Company will have the
right, through counsel of its choice and at SCH’s expense, to conduct or
participate in the defense and to control any matter to the extent it could
directly or indirectly affect the Company. SCH shall cooperate with such
defense to the fullest extent possible, SCH will also reimburse the Company for
all payments of money (Including without limitation, all costs, expenses,
fines, damages, legal fees, court costs, settlements, judgments, etc.) incurred
by the Company to defend and protect itself from, or to remedy, defaults of SCH
under this Agreement.

 

This Indemnity provision shall survive the expiration or termination of
this Agreement by either party for any reason.

 

16.                   Limitation of Liability. Company understands that most
participating hotels are independently owned by franchisees in the SCH system
of hotels and that SCH does not control the day-to-day operations of franchised
hotels. Company understands and agrees that the sole remedy available against
SCH for failure by such franchisees to abide by their obligations shall be
notification to the participating hotel that it may no longer participate
in the activities contemplated by this Agreement. This shall not however,
effect the ability of the Company to pursue damages against any Individual
hotel owner in the event such occurs.

 

17.                   Confidentiality. In addition to, and not in lieu of, any
Confidentiality Agreement the parties may have executed, each party agrees
to keep confidential all data and other information that is designated as
confidential. Information that is designated as confidential includes,

 

 

without limitation, the following: (a) business,
strategic development, financial, and marketing plans of both parties; (b) any
information related to any SCH guest or employee, customer lists, sales plans,
research, and market share Information; (c) any Information designated,
orally or in writing, by either party as Confidential (hereinafter, “Confidential
Information”).

 

Each party agrees not to use, sell or otherwise make Confidential
Information available to any third parties. Each party shall restrict all
Confidential information to employees or agents on a “need to know” basis,
shall inform employees and agents of the confidentiality requirement, and shall
take reasonable precautions to prevent any disclosures. For information that
meets the applicable definition of a trade secret and retains trade secret
status under applicable law, this obligation shall survive the termination of
this Agreement. For all other Confidential Information, this obligation shall
survive the termination of this Agreement for a period of two (2) years.

 

Company shall not use, sell, loan, rent, barter, transfer, or otherwise
enter into any transaction regarding any personally-identifiable information
related or relatable to any IHG hotel customer, IHG hotel guest, Priority Club®
Rewards member, or Six Continents Club® member, derived from such
customer’s, guest’s, or member’s use, purchase, or viewing of any goods or
services offered or provided to any such customer or guest or prospective
customer or guest by way of this Agreement (“Customer”), to any third party,
except as such Customer may agree in advance in writing or by “check-box”
approval on-line, with respect to such Customer’s personally-identifiable
information. Company shall keep and maintain any records relating to such
approvals for a period of no less than one year following the expiration of the
term hereof.

 

Company shall defend and indemnify SCH against all losses (including
legal costs) that SCH may incur by reason of any breach of this Section or
any breach by SCH of any applicable data protection and privacy laws and
regulations that is caused by Company.

 

18.                   Data Ownership, Collection and Access. SCH shall own all
Personal Date collected by Company and Company’s agents, subcontractors,
employees and contractual parties in the performance of this Agreement, or as
otherwise acquired by Customer.

 

Personal Date may be disclosed to Company to perform a
specific task under this Agreement. Company will use the data only to perform such
task. Company shall ensure that the data is not used for any other purpose not
specifically requested in writing by Customer. Company shall ensure that
Personal Data is safely secured.

 

Company shall co-operate with SCH in complying with the exercise by SCH
of rights with regard to Personal Data processed by Vendor under this Agreement
and with any actions of data protection authorities.

 

Company shall identify to SCH an individual within your organization to
act as point of contact for any Inquiries from SCH or data protection
authorities relating to Personal Data.

 

Company shall cause the Personal Data disclosed to Company to be
removed from all records after the specific task to which it relates under this
Agreement has been performed or to be corrected or removed upon request.

 

 

19.                   Notices.

 

A.                      Notices
of default and termination as well as any other notices, demands and other
communications contemplated by this Agreement shall be addressed as follows:

 

To SCH at:

 

Six Continents Hotels, Inc.

Three Ravinia Drive, Suite 100

Atlanta, Georgia 30346-2149

Attention: Marketing Services

E-mail Address:
                                 

With a copy to the Legal Department

Fax number: 770-604-8442

 

To Company at:

 

MyAreaGuide.com, Inc.

1240 East 100 South, Suite5

St. George, Utah 84790

Attention: Dustin Moore, Vice-President Operations

E-mail address:  

 

With a copy to:

Barry E. Clarkson, Esq.

CLARKSON & DRAPER, LLC

1240 East 100 South, Suite 222

St. George, Utah 84790

 

B.                        All
notices of default and termination must be hand-delivered with proof of
receipt; sent by certified or
registered mail, return receipt requested; or sent by overnight courier, with
proof of receipt; and shall be deemed given as of the date the receipt is
signed. Notwithstanding the foregoing, notices of default and termination if
being sent to Company may be e-mailed at the address above and shall be
deemed given as of the date a response
is received by SCH that the notice was received and opened.

 

C.                        All
other notices, demands or communications may be sent by regular mail,
postage prepaid, or by facsimile or e-mail (with evidence of completed
transmission).

 

20.                   Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Georgia.

 

21.                   Compliance with Law. Each party hereto shall, at its own
expense, comply with all applicable federal, state, county and local laws,
ordinances, regulations and codes in the performance of this Agreement.

 

22.                   Entire Agreement. This Agreement, together with the terms
and conditions set forth in the Exhibits hereto, comprises the entire
understanding of the parties and supersedes and

 

 

cancels any previous oral or written agreements
between the parties with respect to the subject matter hereof. Further, any and
all prior representations or agreements by any agent or representative of
either party shall be null and void. Any waiver, modification or amendment to
this Agreement must be in writing and signed by officers of both parties. Any
attempted waiver, modification or amendment not in writing and signed by
officers of both parties shall be null and void.

 

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

 

	
  MYAREAGUIDE.COM, INC.

  	
   

  	
  SIX
  CONTINENTS HOTELS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Dustin Moore

  	
   

  	
   

  	
  By:

  	
  /s/ Chris
  Copp

  	
   

  
	
  Name:

  	
  Dustin
  Moore

  	
   

  	
   

  	
  Name:

  	
  Chris
  Copp

  	
   

  
	
  Title:

  	
  VP

  	
   

  	
   

  	
  Title:

  	
  [ILLEGIBLE]

  	
   

  
	
  Date:

  	
  12/09/04

  	
   

  	
   

  	
  Date:

  	
  12/14/04

  	
   

  
													

 

 

EXHIBIT “A”

 

MYAREAGUIDE.COM NETWORK ADVERTISING
AGREEMENT

 

Six Continents Hotels, Inc. 

MyAreaguide Salesperson: Dustin Moore 

Date: November, 2004

 

	
  Total US

  	
   

  	
  ADVERTISER

  	
   

  	
  ADVERTISER AGENCY

  
	
  Contact Person

  	
   

  	
  Missie Smith

  	
   

  	
   

  
	
  Company Name

  	
   

  	
  InterContinental Hotels
  Group

  	
   

  	
   

  
	
  Address-Line 1

  	
   

  	
  Three Ravinia Drive,
  Atlanta GA

  30346

  	
   

  	
   

  
	
  Phone #

  	
   

  	
  770.604.2091

  	
   

  	
   

  
	
  Fax #

  	
   

  	
  770.604.6636

  	
   

  	
   

  
	
  Email

  	
   

  	
  missie.smith@lchotelsgroup.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Billing
  Information

  
	
  Send Invoices To
  (choose one)

  	
   

  	
  o
  Advertiser

  	
   

  	
  o
  Agency

  
	
  Advertiser or Agency
  Billing Contact Person

  	
   

  	
  Chris Copp

  	
   

  	
   

  
	
  Company Name

  	
   

  	
  InterContinental Hotels
  Group

  	
   

  	
   

  
	
  Billing Address

  	
   

  	
  Three Ravinia Drive,
  Atlanta GA

  30346

  	
   

  	
   

  
	
  Billing Phone #

  	
   

  	
  770.604.5457

  	
   

  	
   

  
	
  Billing Fax #

  	
   

  	
  770.604.5636

  	
   

  	
   

  
	
  Billing Email Address

  	
   

  	
  chris.copp@lchotelsgroup.com

  	
   

  	
   

  

 

Billing
Schedule (select one)

o If total
payment due to less than or equal to $5,000 and the advertiser is [ILLEGIBLE]
to MyAreaguide.com Network, payment is due upon signing and must be received by
MyAreaguide Network prior to start date.

 

Invoices will be due
monthly commencing on the start date, due net 30 after advertiser’s receipt.

 

Payment
Information

o Send Checks to:
MyAreaguide.com, Inc.

Attn:
Accounts Receivable

1240 E
100 S, #5

St.
George, Utah 84790

 

o If payment due
is greater than or equal to $80,000 please wire funds to Melton Bank,
Pittsburg, ABA:  04300261. Credit to
Merrill Lynch [ILLEGIBLE]: 101-1730 for further credit to Account #415-07158. MyAreaguide.com, Inc.

 

In the event of nonpayment, MyAreaguide.com reserves the right to
immediately terminate this Advertising Agreement with written notice to
Advertiser.

 

 

Advertising
Inventory

 

	
  Inventory Purchased

  	
   

  	
  Start

  Date

  	
   

  	
  Stop

  Date

  	
   

  	
  Ad

  Type

  	
   

  	
  Placement &

  Category

  	
   

  	
  Cost of 

  Banner

  	
   

  	
  Total 

  Price

  	
   

  	
  Total 

  Clicks

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  US Apartment Inventory by City. (1) Advertiser
  will provide MAG with an FTP of [ILLEGIBLE] feed of detailed information for
  Intercontinental Hotel Listings (“Advertiser Content” or “Listings”) for all
  properties.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2) Listings included in Advertiser Content
  will include a thumbnail photo url, map link, detailed information, hotel rating,
  city, state, pictures, amenities, hotel information, hotel overview, address
  of hotel, hotel [ILLEGIBLE] for availability search, photos, points of
  interest, policy information, room information.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3) MyAreaGuide.com shall populate the hotels
  database acceptable through the MAG site with the Listings. All such search
  functionality on the MAG Sites shall be hosted and maintained by MyAreaGuide.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4) Clicking on a Listing, property thumbnail
  photo, availability search or a MAG Site hotel search results page will
  send visitors to Advertiser’s Intercontinental individual property.

  	
   

  	
  12/20/04

  	
   

  	
  2/20/05

  	
   

  	
  Link

  	
   

  	
  Hotels

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

Purchase
Summary

 

	
  Myareaguide.com Network

  	
   

  	
  Total Price

  	
   

  	
  Total Clicks Purchased

  	
   

  	
  CPC

  
	
  Entire Network for
  Hotels

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Purchase Price

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
   

  	
  [***]

  

 

In the event guaranteed impressions or clicks are reached prior to the
Stop Date, MyAreaguide may, at its option, discontinue banner or link at such
earlier time. Any guarantees are to impressions or clicks (as measured by
MyAreaguide.com in accordance with its counting methodologies). To the extent
that there is a shortfall in impressions or clicks as of the end of the specified banner period,
Myareaguide.com will provide, as Advertiser’s sole remedy, “make good”
impressions or clicks through comparable placements. To the extent impressions
or clicks commitments are identified
without regard to specific placements, such placements will be as mutually
agreed upon by MyAreaguide.com and Advertiser during the course of the display
period. Myareaguide.com reserves the right to alter Advertiser start dates to
accommodate trafficking needs or other operational needs. In such cases,
MyAreaguide.com will make available to Advertiser reasonably equivalent start
date(s) and extend the Stop Dates.

 

Terms and Conditions

 

 

EXHIBIT “B”

 

STANDARD TERMS AND
CONDITIONS

 

MyAreaGuide.com, Inc. shall be hereinafter referred to as “MAG” and Six
Continents Hotels, Inc. shall be hereinafter referred to as “Advertiser”.

 

The following Standard Terms and Conditions (the “Standard Terms”)
shall be deemed to be incorporated into the attached Advertising Agreement (the
“Advertising Agreement”) dated December 9, 2004.

 

1. Terms of Payment. Advertisor will
be invoiced on the first day of the contract period set forth on the
Advertising Agreement and Payment shall be made to MAG within thirty (30) days
from the receipt of invoice (“Due Date”). Amounts paid after the Due Date shall
bear interest at the rate of one percent (11⁄2%) per month (or the highest rate
permitted by law, if less). In the event Advertiser fails to make timely
payment, Advertiser will be responsible for all reasonable expenses (including attorneys'
fees) incurred by MAG in collecting such amounts. MAG reserves the right to
suspend performance of its obligations (or under any other agreement with
Advertisor) in the event Advertiser fails to make timely payment hereunder or
under any other agreement with MAG.

 

2. Positioning. Except as otherwise
expressly provided in the Advertising Agreement, positioning of advertisements
within the MAG properties or on any page is at the sole discretion of MAG.

 

3. Right to Reject Advertisement. MAG
reserves the right to reject Advertiser Content that is not consistent with MAG’s
standards from time to time in effect with reasonable notice to Advertisor. In
addition, MAG shall have the right, at any time with reasonable notice to
Advertisor, to remove any Advertiser Content and/or to terminate this Agreement
if MAG directed to do so by any law enforcement agency, court or government agency
or if MAG determines, in its sole discretion, that the Advertiser Content,
Promotional Displays, or any portion of such display thereof (i) violate
MAG’s then applicable advertising policy; (ii) violate any law, rule or
regulation; (iii) are the subject of a claim asserted by an entity with
respect to trademarks, trade secret, service marks or other proprietary rights
or (iv) are otherwise objectionable to MAG.

 

4. Renewal. Except as expressly set
forth in the Advertising Agreement, any renewal of the Advertising Agreement
and acceptance of any additional advertising order shall be at MAG’s and
Advertiser’s sole discretion. Pricing for any renewal period is subject to
change by MAG from time to time.

 

5. No Assignment or Resale of Ad Space.
Neither Advertiser nor MAG may resell, assign or transfer any of its rights
hereunder except to an affiliate, subsidiary or parent corporation, without the
prior, express written consent of the non-assigning party, and any attempt to
resell, assign or transfer such rights shall result in an immediate right to
terminate this Agreement, at the non-assigning party’s sole discretion without
liability to that party.

 

6. LIMITATION  OF  LIABILITY. UNDER NO CIRCUMSTANCES SHALL MAG AND/OR
THE DISTRIBUTION AFFILIATES AND/OR ADVERTISER BE LIABLE TO THE OTHER FOR
INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES (EVEN IF SUCH
DAMAGES ARE FORSEEABLE, AND WHETHER OR NOT MAG OR ADVERTISER HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES) ARISING FROM ANY ASPECT OF THE ADVERTISING
RELATIONSHIP PROVIDED FOR HEREIN, EXCEPT FOR INDEMNIFICATION OBLIGATIONS, BREACHES
OF CONFIDENTIALITY OBLIGATIONS, ACTS OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
MAG AND ADVERTISER SHALL IN NO EVENT BE LIABLE TO THE OTHER FOR MORE
THAN THE TOTAL AMOUNT OF ADVERTISING FEES PAID OR PAYABLE TO MAG HEREUNDER. MAG
MAKES NO REPRESENTATIONS, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES,
EXPRESS OR IMPLIED, REGARDING MAG’S SERVICES OR ANY PORTION THEREOF, INCLUDING
BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY, OR FITNESS FOR A
PARTICULAR PURPOSE AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALINGS AND
COURSE OF PERFORMANCE. WITHOUT LIMITING THIS GENERALITY OF THE FOREGOING, MAG
SPECIFICALLY DISCLAIMS ANY WARRANTY REGARDING THE NUMBER OF PERSONS WHO WILL
ACCESS THE PROMOTIONAL DISPLAYS AND ANY BENEFIT ADVERTISER OR AGENCY MIGHT
OBTAIN FROM INCLUDING THE PROMOTIONAL DISPLAYS BY MAG.

 

7. Warranties by Advertiser:
Advertiser represents and warrants that (i) Advertiser holds the necessary
rights to grant the rights to MAG granted herein to use the Advertiser Content
and display of the same in Promotional Displays for the purpose of this
Agreement; (ii) the use, reproduction, distribution, or transmission of
Advertiser Content and the display of Promotional Displays will not violate any
civil or criminal laws, rules or regulations or any rights of any third
parties including but not limited to such violations as infringement or misappropriation
of any copyright, patent, trademark, trade secret, music image, or other proprietary
or property right, false advertising, unfair competition, defamation, invasion
of privacy or rights of celebrity, violation of any anti-discrimination law or
regulation, or any other right of any person or entity; (iii) neither the
Advertiser Content nor its use in promotional displays shall advertise or
enable the unlawful sale of alcohol, tobacco, or firearm products of any
unlawful gambling activity or lottery; and (iv) the Advertiser Content
complies with all applicable laws, rules and regulations.

 

8. Advertisers Representations:  Indemnification. Advertisements are accepted upon the
representation that Advertiser has the right to publish the contents of the
advertisement without infringing the rights of any third party and without
violating any law. In consideration of such publication, Advertiser agrees, at
its own expense, to indemnify, defend and hold harmless, and its employees,
representatives, agents and affiliates, against 
any and all expenses and losses of any kind (including reasonable
attorneys’ fees and costs) incurred by in connection with any claim of
trademark or copyright infringement, defamation, breach of confidentiality,
privacy violation, false or deceptive advertising or sales practices.

 

9. Provision of Advertising Materials.
Advertiser will provide all material for the advertisement in accordance with
MAG’s policies in effect from time to time as are communicated to Advertiser,
including (without limitation) the manner of transmission to MAG and the lead-time
prior to publication of the advertisement, MAG shall not be required to publish
any advertisement that is not received in

 

 

This Advertising Agreement is subject to the terms and conditions (“Standard
Terms”) of the Advertising Agreement dated December    ,
2004 and Exhibit B of this Advertising Agreement, and such Standard Terms
are made a part of this Advertising Agreement by reference. The signatory
of this Advertising Agreement represents that the Advertising Agency has read
and agrees to such Standard Terms.

 

Advertiser shall have the right to cancel or terminate this agreement
without liability at any time and for any reason upon thirty (30) days prior
written notice to MyAreaguide.com

 

Authorize Signatures

 

In order to bind the parties to this Advertising Agreement, their duly
authorized representatives have signed their names below on the dates
indicated. This Agreement (including the Standard Terms) shall be binding on
both parties when signed on behalf of each party and delivered to the other
party (which delivery may be accomplished by facsimile transmission of the
signature pages hereto).

 

 

	
  Myareaguide.com

  	
  Advertiser

  
	
   

  	
   

  
	
  By:

  	
  /s/ Dustin
  Moore

  	
   

  	
  By:

  	
  /s/ Michael
  Menis

  	
   

  
	
  (Signature)

  	
  (Signature)

  
	
   

  	
   

  
	
  Print
  Name: Dustin Moore

  	
  Print
  Name: Michael Menis

  
	
   

  	
   

  
	
  Title:
  Sales Manager

  	
  Title:

  	
  Director,
  [ILLEGIBLE]

  	
   

  
	
  (Print
  or Type)

  	
  (Print
  or Type)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  12/20/04

  	
   

  	
  Date:

  	
  12/17/04

  	
   

  
								

 

 

accordance with such policies. Advertiser herby grants to MAG a
non-exclusive, worldwide, fully paid license for the term of this agreement
only to use, reproduce and display the advertisements (and the contents,
trademarks and brand features contained therein) in accordance herewith.

 

9.                          Retention of Property Interest. Advertiser understands that
this Agreement does not transfer any interest (property or otherwise) of MAG to
Advertiser. MAG understands that this Agreement does not transfer any interest
(property or otherwise) of Advertiser to MAG. All interests are retained by MAG
and Advertiser respectively and each is only granted a license to use such
interests subject to the Standard Terms and Conditions and the Advertising
Agreement.

 

10.                    Confidentiality. The terms and conditions of this Agreement
are confidential and neither party will make any public statement, press release,
or other announcement relating to the terms and conditions of or the existence
of this Agreement without the prior written approval of the other, unless
required by law to do so. The confidentiality obligations herein shall in no
way prevent Advertiser from communicating confidential information or terms of
this agreement to its affiliates, subsidiaries, parents or franchisees for the
purpose of conducting and promoting Advertiser’s, affiliates', subsidiaries',
parents' or franchisees’ business.

 

11.                    Merger. The Standard Terms and Conditions together with the
Advertising Agreement set forth the entire agreement between MAG and
Advertiser. This Agreement supersedes any and all prior agreements (written or
oral) of MAG and Advertiser with respect to the subject matter set forth
herein.

 

12.                    Conflicts. MAG and Advertiser hereby expressly reserve the
right to terminate this Agreement at any time said Agreement conflicts, or
causes MAG or Advertiser, in their respective sole and absolute discretion, to
breach or otherwise stand in violation of any other contract to which MAG or
Advertiser is a party, whether past, present or future.

 

13.                    Successors in Interest. This Agreement is duly enforceable
against the other party in accordance with its terms and conditions, and the
rights and obligations herein shall inure to the benefit of the parties, their heirs,
successors, and permitted assigns.

 

Agreed to in Conjunction
with Advertising Agreement        

 

	
   

  	
  /s/ Michael
  Menis

  	
   

  	
   

  
	
   

  	
  Signature
  of Advertiser

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Dustin
  Moore

  	
   

  	
   

  
	
   

  	
  Signature
  of MAG

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