Document:

exv10w3

 Exhibit 10.3

HSBC BANK USA, National Association

125 High Street, Oliver Street Tower, 16th Floor

Boston, Massachusetts 02110

December 31, 2010

Parexel International Corporation

195 West Street

Waltham, Massachusetts 02451

Attn: Peter Rietman, Vice President and Treasurer

               Re: Term Loan Facility

Ladies and Gentlemen:

HSBC BANK USA, National Association. (the “Lender”) is pleased to make available to
PAREXEL INTERNATIONAL CORPORATION, a Massachusetts corporation (the “Borrower”), a term
loan on the terms and subject to the conditions set forth below. Terms not defined herein have the
meanings assigned to them in Exhibit A hereto.

	1.	 	The Facility.

	 	(a)	 	The Term Loan. Subject to the terms and conditions set
forth herein, the Lender agrees to make a single loan to
the Borrower on the Closing Date in an aggregate principal
amount equal to $25,000,000 (the “Term Loan”). Amounts
borrowed under this Paragraph 1(a) and repaid or prepaid
may not be reborrowed.
	 
	 	(b)	 	Borrowings, Conversions, Continuations. The Borrower may
request that the Term Loan or, subject to the terms and
conditions set forth herein, any portion thereof be (i)
made as or converted to a Base Rate Loan by irrevocable
notice to be received by the Lender not later than 11:00
a.m. on the Business Day of the borrowing or conversion, or
(ii) made or continued as, or converted to, a Eurodollar
Rate Loan by irrevocable notice to be received by the
Lender not later than 11:00 a.m. three Business Days (or in
the case of the initial Term Loan to be made on the
Closing Date, such shorter period as may be agreed to by
the Lender) prior to the Business Day of the borrowing,
continuation or conversion. If the Borrower fails to give a
notice of conversion or continuation prior to the end of
any Interest Period in respect of any Eurodollar Rate Loan,
the Borrower shall be deemed to have requested such
Eurodollar Rate Loan to be converted to a Base Rate Loan on
the last day of the applicable Interest Period. If the
Borrower requests that any portion of the Term Loan be
continued as or converted to a Eurodollar Rate Loan, but
fails to specify an Interest Period with respect thereto,
the Borrower shall be deemed to have selected an Interest
Period of one month. Notices pursuant to this Paragraph
1(b) may be given by telephone if promptly confirmed in
writing by a Responsible Officer.
	 
	 	 	 	Each Eurodollar Rate Loan shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess
thereof. Each Base Rate Loan shall be in a minimum
principal amount of $500,000. There shall not be more than
3 different Interest Periods in effect at any time.

 

 

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	 	(c)	 	Interest. At the option of the Borrower, the Term Loan shall bear interest at a rate per annum equal to
(i) the
Eurodollar Rate plus the Applicable Margin; or (ii) the
Base Rate plus the Applicable Margin. All computations
of interest for Base Rate Loans shall be made on the basis of a year of 365 or 366 days, as the case may be, and
actual days elapsed. All other interest hereunder shall be calculated on the basis of a year of 360 days and
actual days elapsed.
	 
	 	 	 	The Borrower promises to pay interest and fees (i) on the last Business Day of each calendar month commencing
January 31, 2011 and each calendar month thereafter; and (iii) on the Maturity Date. If the time for any payment
is extended by operation of law or otherwise, interest shall continue to accrue for such extended period.
	 
	 	 	 	After the date any principal amount of the Term Loan is due and payable (whether on the Maturity Date, upon
acceleration or otherwise), or after any other monetary obligation hereunder shall have become due and payable
(in each case without regard to any applicable grace periods), the Borrower shall pay interest (after as well as
before judgment) on such amounts at a rate per annum equal to the
Base Rate plus the Applicable Margin plus 5%.
Accrued and unpaid interest on past due amounts shall be payable on demand.
	 
	 	 	 	In no case shall interest hereunder exceed the amount that the Lender may charge or collect under applicable law.
	 
	 	(d)	 	Evidence of Loans. The Term Loan and all payments thereon
shall be evidenced by the Lender’s loan accounts and
records; provided, however, that upon the request of the
Lender, the Term Loan may be evidenced by a promissory note
in a form reasonably acceptable to the Lender in addition
to such loan accounts and records. Such loan accounts,
records and promissory note, if any, shall be conclusive
absent manifest error of the amount of the Term Loan and
payments thereon. Any failure to record the Term Loan or
payment thereon or any error in doing so shall not limit or
otherwise affect the obligation of the Borrower to pay any
amount owing with respect to the Term Loan.
	 
	 	(e)	 	Closing Fee. The Borrower agrees to pay to the Lender a
closing fee of $25,000 (the “Closing Fee”). The Closing
Fee shall be due and payable on the Closing Date and, upon
payment, shall not be refundable for any reason whatsoever.
	 
	 	(f)	 	Repayment. (i) The Borrower hereby promises, absolutely and
unconditionally, to pay the aggregate principal amount of
the Term Loan then outstanding on the Maturity Date. The
Borrower shall make all payments required hereunder not
later than 2:00 p.m. on the date of payment in same day
funds in Dollars at the office of the Lender located at 125
High Street, Oliver Street Tower, 16th Floor,
Boston, Massachusetts 02110 or such other address as the
Lender may from time to time designate in writing.

 

 

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	 	(ii)	 	All payments by the Borrower to the Lender hereunder shall be made to
the Lender in full without set-off or counterclaim and free and clear
of and exempt from, and without deduction or withholding for or on
account of, any present or future taxes, levies, imposts, duties or
charges of whatsoever nature imposed by any government or any
political subdivision or taxing authority thereof unless the Borrower
is required to deduct or withhold such amounts by law. If the
Borrower is required to deduct or withhold taxes by law, the Borrower
shall reimburse the Lender for any taxes imposed on or withheld from
such payments (other than taxes imposed on the Lender’s income,
franchise taxes imposed on the Lender, or branch profits taxes or
similar taxes imposed on the Lender, by the jurisdiction under the
laws of which the Lender is organized or any political subdivision
thereof or in which its principal or lending office is located or by
any jurisdiction as a result of a present or former connection
between the Lender and such jurisdiction, other than any such
connection arising solely as a result of this Agreement). On or prior
to the Closing Date, the Lender shall deliver to the Borrower, a duly
executed and properly completed copy of IRS Form W-9 (or applicable
successor form) establishing an exemption from United States federal
backup withholding tax. Borrower shall not reimburse the Lender for
any withholding taxes resulting from Lender’s failure to deliver such
form. No assignee or participant shall be entitled to reimbursement
for taxes hereunder or reimbursement or payment of any costs, losses
or payments under Paragraph 5(d) hereof, to the extent that the
assignor or grantor of participation rights, as applicable, was not
entitled to such reimbursement or payment at the time of such
assignment or grant of participation. Any assignee or participant
shall provide the Borrower with a duly completed and properly
completed IRS Form W-9 or appropriate IRS Form W-8, as applicable.

	 	(g)	 	Prepayments. The Borrower may, upon three Business Days’ notice, in
the case of Eurodollar Rate Loans, and upon same-day notice in the
case of Base Rate Loans, prepay Base Rate Loans on any Business Day;
provided that the Borrower pays all Breakage Costs (if any) associated
with such prepayment on the date of such prepayment. Prepayments of
Eurodollar Rate Loans must be accompanied by a payment of interest on
the amount so prepaid. Prepayments of Eurodollar Rate Loans must be in
a principal amount of $5,000,000 or a whole multiple of $1,000,000 in
excess thereof. Prepayments of Base Rate Loans must be in a principal
amount of at least $500,000 or, if less, the entire principal amount
thereof then outstanding.

	2.	 	Conditions Precedent to Loans. The obligation of the Lender to make
the Term Loan hereunder is subject to satisfaction of the following
conditions precedent:

	 	(a)	 	The Lender’s receipt of each of the following in form and substance
satisfactory to the Lender:

	 	(i)	 	this Agreement duly executed and delivered on behalf of the Borrower
and the Lender;

 

 

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	 	(ii)	 	a certified borrowing resolution or other evidence of the Borrower’s
authority to borrow the Term Loan and enter into the Loan Documents;
	 
	 	(iii)	 	a certificate of incumbency evidencing the identity, authority and
capacity of each Person authorized to act in connection with the Loan
Documents;
	 
	 	(iv)	 	the Borrower shall have furnished to the Lender a notice of borrowing; and
	 
	 	(v)	 	a favorable opinion of Wilmer Cutler Pickering Hale and Dorr LLP, counsel
to the Borrower, addressed to the Lender, as to such matters concerning
the Borrower and the this Agreement and the other Loan Documents as the
Lender may reasonably request; and
	 
	 	(vi)	 	such other documents and certificates as the Lender may reasonably request.

	 	(b)	 	The Lender shall have received from the Borrower payment of all fees
and expenses (including reasonable attorneys’ fees) required to be
paid to the Lender on or before the Closing Date.

	3.	 	Covenants; Representations and Warranties.

	 	(a)	 	Compliance with Incorporated Agreement. So long as
principal of and interest on the Term Loan or any other
amount payable hereunder or under any other Loan Document
remains unpaid, the Borrower shall comply with all the
covenants and agreements applicable to it contained in
Articles V (Affirmative Covenants) and VI (Negative
Covenants) of the Incorporated Agreement as in effect on
the Closing Date including for purposes of this
Paragraph 3
each Additional Incorporated Agreement Covenant, in each
case, without giving effect to any subsequent amendment,
consent, waiver or other modification thereof. The Borrower
hereby agrees that, in furtherance of the foregoing, the
Borrower shall (x) deliver to the Lender each of the
financial statements, certificates or other documents
required to be delivered to any lender or any agent under
Sections 5.1(a)-(d) and Section 5.2 of the Incorporated
Agreement as in effect on the Closing Date including each
Additional Incorporated Agreement Covenant and (y)
calculate each of the financial covenants set forth in the
Incorporated Agreement without giving effect to any
amendment, consent, waiver or other modification of such
financial covenant occurring after the Closing Date (other
than any Additional Incorporated Agreement Covenant). The
Lender hereby agrees that the Borrower shall be permitted
to deliver each such financial statement, certificate or
other document in the manner specified in the Incorporated
Agreement, as in effect on the date hereof. All such
covenants and agreements shall not be affected by any
termination, cancellation, discharge or replacement of the
Incorporated Agreement.
	 
	 	(b)	 	Representations and Warranties. The Borrower hereby
represents and warrants to the Lender that each
representation and warranty of the Borrower contained in
Sections 3.1, 3.5, 3.6 (other than 3.6(a)(ii)), 3.7, 3.8,
3.9, 3.10 and 3.19 of the Incorporated Agreement is true
and correct on and as of the Closing Date, except to the
extent that such representations and warranties
specifically refer to an earlier date, in which case they
are

 

 

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true and correct as of such earlier date. The Borrower hereby further represents and warrants to the Lender that:

(i) It is a corporation duly organized or formed, validly existing and in good standing under the laws of the
state of its organization or formation and has the power and authority and the legal right to execute, deliver
and perform its obligations under the Loan Documents;

(ii) The execution, delivery and performance of this Agreement and the other Loan Documents by the Borrower have
been duly authorized by all necessary action, and this Agreement is and the other Loan Documents, when executed,
will be legal, valid and binding obligations of the Borrower, enforceable in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law. The execution, delivery and performance of this Agreement and the other Loan
Documents are not in contravention of law or of the terms of the Borrower’s organic documents and will not
result in the breach of or constitute a default under, or result in the creation of a lien or require a payment
to be made under any indenture, agreement or undertaking to which the Borrower is a party or by which it or its
property may be bound or affected;

(iii) No Default has occurred and is continuing;

(iv) The proceeds of the Term Loan will be used to repay indebtedness, for general corporate purposes and in
accordance with requirements of law, and will not be used for any purpose that entails a violation of the
Regulations of the Board of the Federal Reserve, including Regulations T, U and X;

(v)
The Borrower’s true and correct U.S. taxpayer identification number is set forth beneath its signature below;

(vi) Since June 30, 2010, there has been no material adverse change in the business, assets, operations,
prospects or condition, financial or otherwise, of the Borrower and its Subsidiaries (as defined in the
Incorporated Agreement) taken as a whole; and

(vi) The transactions contemplated by this Agreement and the other Loan Documents do not require any consent or
approval of, registration or filing with, or any other action by, any governmental authority, except such as
have been obtained or made and are in full force and effect and any public filings with the Securities and
Exchange Commission.

	4.	 	Events of Default. The following are “Events
of Default:”

	 	(a)	 	The Borrower fails to pay (i) any principal of the Term Loan as and on
the date when due, (ii) any interest on the Term Loan or any fee due
hereunder within ten (10) Business Days after the date when due; or
(iii) any other fee or amount payable to the Lender under any Loan
Document, or any portion thereof, within ten (10) Business Days after
the date due; or

 

 

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	 	(b)	 	The Borrower fails to comply with any covenant or agreement
contained or referenced in Paragraph 3(a) above, subject to
any applicable grace period and/or notice requirement set
forth in Article VII of the Incorporated Agreement (it
being understood and agreed that any such notice
requirement shall be met by the Lender’s giving the
applicable notice to the Borrower hereunder); or
	 
	 	(c)	 	Any representation or warranty made or deemed made by or on
behalf of the Borrower in or in connection with this
Agreement or any amendment or modification hereof or waiver
hereunder, or in any report, certificate, financial
statement or other document furnished pursuant to or in
connection with this Agreement or any amendment or
modification hereof or waiver hereunder, shall prove to
have been incorrect in any material respect when made or
deemed made; or
	 
	 	(d)	 	Any “Event of Default” specified in VII of the Incorporated
Agreement (including for purposes of this Paragraph 4(d)
each Additional Incorporated Agreement Event of Default)
occurs and is continuing, without giving effect to any
waiver, consent or amendment thereof pursuant to the
Incorporated Agreement, it being agreed that each such
“Event of Default” shall survive any termination,
cancellation, discharge or replacement of the Incorporated
Agreement; or
	 
	 	(e)	 	Any material provision of any Loan Document, at any time
after its execution and delivery and for any reason other
than as expressly permitted hereunder or thereunder or
satisfaction in full of the Term Loan and all other amount
payable hereunder, ceases to be in full force and effect;
or the Borrower contests in writing, or shall bring an
action at law or in equity to contest, the validity or
enforceability of any provision of any Loan Document; or
the Borrower denies that it has any or further liability or
obligation under any Loan Document, or purports to revoke,
terminate or rescind any provision of any Loan Document.

Upon the occurrence of an Event of Default, the Lender may (x) declare all sums
outstanding hereunder and under the other Loan Documents, including all
interest thereon, to be immediately due and payable, whereupon the same shall
become and be immediately due and payable, without notice of default,
presentment or demand for payment, protest or notice of nonpayment or dishonor,
or other notices or demands of any kind or character, all of which are hereby
expressly waived; provided, however, that upon the occurrence of an actual or
deemed entry of an order for relief with respect to the Borrower under the
Bankruptcy Code of the United States of America, all sums outstanding hereunder
and under each other Loan Document, including all interest thereon, shall
become and be immediately due and payable, without notice of default,
presentment or demand for payment, protest or notice of nonpayment or dishonor,
or other notices or demands of any kind or character, all of which are hereby
expressly waived and (y) exercise all rights and remedies available to it under
the Loan Documents and under applicable law.

	5.	 	Miscellaneous.

	 	(a)	 	All references herein and in the other Loan Documents to any time of
day shall mean the local (standard or daylight, as in effect) time of
Boston, Massachusetts.

 

 

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	 	(b)	 	The Borrower shall be obligated to pay all Breakage Costs.
	 
	 	(c)	 	If at any time the Lender, in its reasonable discretion,
determines that (i) adequate and reasonable means do not
exist for determining the Eurodollar Rate or the Adjusted
Eurodollar Rate, or (ii) the Eurodollar Rate or the
Adjusted Eurodollar Rate does not accurately reflect the
funding cost to the Lender of making Eurodollar Rate Loans,
the Lender’s obligation to make or maintain Eurodollar Rate
Loans shall cease for the period during which such
circumstance exists.
	 
	 	(d)	 	The Borrower shall reimburse or compensate the Lender, upon
demand, for all costs incurred, losses suffered or payments
made by the Lender which are applied or reasonably
allocated by the Lender to the transactions contemplated
herein (all as determined by the Lender in its reasonable
discretion) by reason of any and all future reserve,
deposit, capital adequacy or similar requirements against
(or against any class of or change in or in the amount of)
assets, liabilities or commitments of, or extensions of
credit by, the Lender; and compliance by the Lender with
any future directive or any future interpretation of an
existing directive, or requirements from any regulatory
authority, whether or not having the force of law; provided
that the Borrower shall not be required to compensate the
Lender for any increased costs or reductions incurred more
than 180 days prior to the date that Lender notifies the
Borrower of the change in law giving rise to such increased
costs, losses or payments and the Lender’s intention to
claim compensation therefore; provided further that if the
change in law giving rise to such increased costs or
reductions is retroactive, then the 180 day period referred
to above shall be extended to include the period of
retroactive effect thereof.
	 
	 	(e)	 	No amendment or waiver of any provision of this Agreement
(including any provision of the Incorporated Agreement
incorporated herein by reference pursuant to Paragraph 3
above and any waiver of Paragraph 4(c) or Paragraph 4(d)
above) or of any other Loan Document and no consent by the
Lender to any departure therefrom by the Borrower shall be
effective unless such amendment, waiver or consent shall be
in writing and signed by the Lender, and any such
amendment, waiver or consent shall then be effective only
for the period and on the conditions and for the specific
instance specified in such writing. No failure or delay by
the Lender in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other
rights, power or privilege.
	 
	 	(f)	 	Except as otherwise expressly provided herein, notices and
other communications to each party provided for herein
shall be in writing and shall be delivered by hand or
overnight courier service, mailed or sent by telecopy to:

	 	(i)	 	if to the Lender, to it at HSBC Bank USA, National Association, 125
High Street, Oliver Street Tower, 16th Floor, Boston,
Massachusetts 02110, Attention: Elise Russo, or telecopy at
617-338-3849, Attention: Elise Russo, or such other address provided
from time to time by the Lender; and

 

 

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	 	(ii)	 	if to the Borrower, to it at 195 West Street, Waltham, Massachusetts
02451-1163, Attention of James F. Winschel, Jr. (Telecopy No. (781)
434-5033); with a copy to Office of the General Counsel, Attention of
General Counsel (Telecopy No. 781- 434-5040); with a copy to
Treasurer, Parexel International Corp., Herman Heijermansweg 20, 1077
WL Amsterdam, Netherlands, Attention of Peter Rietman (Telecopy No.
31 20 572 11 09), or such other address provided from time to time by
the Borrower.

	 	 	 	Any such notice or other communication sent by overnight courier
service, mail or telecopy shall be effective on the earlier of
actual receipt and (i) if sent by overnight courier service, the
scheduled delivery date, (ii) if sent by mail, the fourth Business
Day after deposit in the U.S. mail first class postage prepaid, and
(iii) if sent by telecopy, when transmission in legible form is
complete. All notices and other communications sent by the other
means listed in the first sentence of this paragraph shall be
effective upon receipt. Notwithstanding anything to the contrary
contained herein, all notices (by whatever means) to the Lender
pursuant to Paragraph 1(b) hereof shall be effective only upon
receipt. Any notice or other communication permitted to be given,
made or confirmed by telephone hereunder shall be given, made or
confirmed by means of a telephone call to the intended recipient at
the number specified in writing by such Person for such purpose, it
being understood and agreed that a voicemail message shall in no
event be effective as a notice, communication or confirmation
hereunder.
	 
	 	 	 	The Lender shall be entitled, but not required, to rely and act upon
any notices (including telephonic notices of borrowings, conversions
and continuations) purportedly given by or on behalf of the Borrower
even if (i) such notices were not made in a manner specified herein,
were incomplete or were not preceded or followed by any other form
of notice specified herein, or (ii) the terms thereof, as understood
by the recipient, varied from any confirmation thereof. The Borrower
shall indemnify each Indemnitee from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each
notice purportedly given by or on behalf of the Borrower;
provided
that such indemnity shall not be available to the extent that such
losses, costs, expenses and liabilities are determined by a court of
competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such
Indemnitee. All telephonic notices to and other communications with
the Lender may be recorded by the Lender, and the Borrower hereby
consents to such recording.

	 	(g)	 	This Agreement shall inure to the benefit of the parties hereto and
their respective successors and assigns, except that the Borrower may
not assign its rights and obligations hereunder. The Lender may at any
time (i) assign all or any part of its rights and obligations
hereunder to any other Person with the consent of the Borrower, such
consent not to be unreasonably withheld, provided that no such consent
shall be required if the assignment is to an Affiliate of the Lender
or if an Event of Default exists, and (ii) grant to any other Person
participating interests in all or part of its rights and obligations
hereunder without notice to the Borrower. The Borrower agrees to
execute any documents reasonably requested by the Lender in connection
with any such assignment. All information provided by or on behalf of
the Borrower to the Lender or its Affiliates may be furnished by the
Lender to its Affiliates and to any actual or proposed assignee or

 

 

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	 	 	 	participant, subject to an agreement containing provisions substantially the
same as those of Paragraph 5(q) below. Any assignee of Lender hereunder shall
identify to the Borrower a credit contact who may receive information that may
contain material non-public information in accordance with its compliance
procedures and applicable law.
	 
	 	(h)	 	The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Lender (including the reasonable
fees, charges and disbursements of counsel for the Lender),
in connection with the preparation, negotiation, execution,
delivery and administration of this Agreement and the other
Loan Documents or any amendments, modifications or waivers
of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be
consummated), and (ii) all out-of-pocket expenses incurred
by the Lender (including the reasonable fees, charges and
disbursements of any counsel for the Lender) in connection
with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan
Documents, including its rights under this Section, or (B)
in connection with Term Loan made hereunder, including all
such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Term
Loans.
	 
	 	(i)	 	The Borrower shall indemnify and hold harmless the Lender,
its Affiliates, and their respective partners, directors,
officers, employees, agents and advisors (collectively the
“Indemnitees”) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and
related expenses (including the reasonable fees, charges
and disbursements of any counsel for any Indemnitee),
incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower arising
out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby
or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder, or the
consummation of the transactions contemplated hereby or
thereby (other than those matters specifically addressed in
Paragraph 1(f)(ii) and 5(d), which matters shall be
governed by the provisions of such Paragraph 1(f)(ii) and
5(d), respectively), (ii) any Loan or the use or proposed
use of the proceeds therefrom (other than those matters
specifically addressed in Paragraph 1(f)(ii) and 5(d),
which matters shall be governed by the provisions of such
Paragraph 1(f)(ii) and 5(d), respectively), (iii) any
actual or alleged presence or release of hazardous
materials on or from any property owned or operated by the
Borrower or any subsidiary of the Borrower, or any
environmental liability related in any way to the Borrower
or any subsidiary of the Borrower, or (iv) any actual or
prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a
third party or by the Borrower, and regardless of whether
any Indemnitee is a party thereto; provided that such
indemnity shall not as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities
or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment
to have resulted from the gross negligence or willful
misconduct of such Indemnitee or (y) result from a claim
brought by the Borrower against the Lender for breach in
bad faith of the Lender’s obligations hereunder or under
any other Loan Document, if the Borrower has obtained a
final and nonappealable judgment in its favor

 

 

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	 		 	on such claim as determined by a court of competent jurisdiction. To the
fullest extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby, the transactions contemplated hereby or thereby, any Loan or the use of
the proceeds thereof. No Indemnitee shall be liable for any damages arising
from the use by unintended recipients of any information or other materials
distributed to such unintended recipients by such Indemnitee through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby other than for direct or actual damages
resulting from the gross negligence or willful misconduct of such Indemnitee as
determined by a final and nonappealable judgment of a court of competent
jurisdiction. The agreements in this Paragraph 5(i) shall survive the
repayment, satisfaction or discharge of all the other obligations and
liabilities of the Borrower under the Loan Documents. All amounts due under
this Paragraph 5(i) shall be payable within ten Business Days after demand
therefor.

	 	(j)	 	If any provision of this Agreement or the other Loan
Documents is held to be illegal, invalid or unenforceable,
the legality, validity and enforceability of the remaining
provisions of this Agreement and the other Loan Documents
shall not be affected or impaired thereby. The invalidity
of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any
other jurisdiction.
	 
	 	(k)	 	This Agreement may be executed in one or more counterparts,
and each counterpart, when so executed, shall be deemed an
original but all such counterparts shall constitute but one
and the same instrument.
	 
	 	(l)	 	THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ARE GOVERNED
BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE COMMONWEALTH OF MASSACHUSETTS. THE BORROWER HEREBY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED
STATES DISTRICT COURT AND EACH STATE COURT IN THE CITY OF
MASSACHUSETS AND ANY APPELLATE COURT FROM ANY THEREOF, IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY
OF THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
THEREBY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT.
THE BORROWER IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND
ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING
OF COPIES OF SUCH PROCESS TO THE BORROWER AT ITS ADDRESS
SET FORTH BENEATH ITS SIGNATURE HERETO. THE BORROWER
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH
A COURT AND ANY CLAIM THAT ANY

 

 

Parexel International Corporation

December 31, 2010

Page 11

	 	 	 	SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.
	 
	 	(m)	 	THE BORROWER AND THE LENDER EACH WAIVE THEIR RESPECTIVE
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT,
THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.
	 
	 	(n)	 	The Lender hereby notifies the Borrower that pursuant to
the requirements of the USA PATRIOT Act (Title III of
Pub.L. 107-56 (signed into law October 26, 2001)) (the
“Act”), the Lender is required to obtain, verify and record
information that identifies the Borrower, which information
includes the name and address of the Borrower and other
information that will allow the Lender to identify the
Borrower in accordance with the Act. The Borrower shall,
promptly following a request by the Lender, provide all
documentation and other information that the Lender
reasonably requests in order to comply with its ongoing
obligations under applicable “know your customer” and
anti-money laundering rules and regulations, including the
Act.
	 
	 	(p)	 	THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
	 
	 	(q)	 	The Lender agrees to maintain the confidentiality of the
Information (as defined below), except that Information may
be disclosed (i) to its and its Affiliates’ directors,
officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that
the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and
instructed to keep such Information confidential), (ii) to
the extent requested by any regulatory authority, (iii) to
the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (iv) in connection
with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the
enforcement of rights hereunder, (v) subject to an
agreement containing provisions substantially the same as
those of this Paragraph 5(q), to any assignee of or
participant in, or any prospective assignee of or
participant in, any of its rights or obligations under this
Agreement, (vi) with the consent of the Borrower or (vii)
to the extent such Information (1) becomes publicly
available other than as a result of a breach of this
Paragraph 5(q) or (2) becomes available to the Lender on a
nonconfidential basis from a source other than the
Borrower. For the purposes of this Section, “Information”
means all information received from the Borrower relating
to the Borrower or its business, other than any such
information that is available to the Lender on a
nonconfidential basis prior to disclosure by the Borrower.
Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered
to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain
the confidentiality of such Information as such Person
would accord to its own confidential information. The
Lender agrees to use reasonable

 

 

Parexel International Corporation

December 31, 2010

Page 12

	 	 	 	commercial efforts (if it may legally do so) to provide prior notice
of any disclosure of Information pursuant to clauses (ii) or (iii)
above.
	 
	 	 	 	THE LENDER ACKNOWLEDGES THAT INFORMATION (AS DEFINED ABOVE)
FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL
NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS AFFILIATES OR
THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED
COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC
INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC
INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW,
INCLUDING FEDERAL AND STATE SECURITIES LAWS.
	 
	 	 	 	ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS,
FURNISHED BY THE BORROWER PURSUANT TO THIS AGREEMENT MAY CONTAIN
MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS
AFFILIATES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, THE BANK
REPRESENTS TO THE BORROWER THAT IT HAS IDENTIFIED TO THE BORROWER IN
THE NOTICE PROVISIONS ABOVE A CREDIT CONTACT WHO MAY RECEIVE
INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN
ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 
	 	
HSBC BANK USA, National Association

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	PAREXEL INTERNATIONAL CORPORATION

 	 	 
	By:  	 	 	 
	 	Name:  	Peter Rietman 	 	 
	 	Title:  	Treasurer

	 	 
	 	U.S. Taxpayer Identification Number:  

Signature Verified:

______________________________

 

 

EXHIBIT A

DEFINITIONS

	 	 	 

	Additional Incorporated 

Agreement Covenant:

	 	A covenant or agreement that is added to Article V (Affirmative Covenants) or VII
(Negative Covenants) of the Incorporated Agreement after the Closing Date, as such
covenant or agreement is in effect on the date so added, without giving effect to any
subsequent amendment or other modification thereof; provided, however, that no such
covenant or other agreement shall be deemed to be an “Additional Incorporated Agreement
Covenant” to extent such new covenant or agreement shall be less restrictive than any
existing covenant or agreement, as determined by the Lender in its reasonable discretion.
	 
	 	 
	Additional Incorporated
Agreement Event of Default:

	 	An “Event of Default” that is added to Article VII of the Incorporated Agreement after the
Closing Date, as such “Event of Default” is in effect on the date so added, without giving
effect to any subsequent amendment or other modification thereof; provided, however, that
no such “Event of Default” shall be deemed to be an “Additional Incorporated Agreement
Event of Default” to extent such new “Event of Default” shall be less restrictive than any
existing “Event of Default”, as determined by the Lender in its reasonable discretion.
	 
	 	 
	Adjusted Eurodollar Rate:

	 	For any Interest Period with respect to any Eurodollar Rate Loan, a rate per annum
determined pursuant to the following formula:

	 	 	 

	Adjusted Eurodollar Rate =
	 	Eurodollar Rate
	 
	 	 
	 
	 	1.00 — Eurodollar Reserve Percentage

	 	 	 

	Affiliate:

	 	With respect to any Person, another Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control with the
Person specified.
	 
	 	 
	Agreement:

	 	This letter agreement, as amended, restated, extended, supplemented or otherwise modified
in writing from time to time.
	 
	 	 
	Applicable Margin:

	 	The following percentages per annum, based on the Consolidated Leverage Ratio (as defined
in the Incorporated Agreement) as of the end of the most recent Reference Period (as
defined in the Incorporated Agreement) for which financial statements shall have been
delivered pursuant to the Incorporated Agreement :

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pricing Level	 	Consolidated Leverage Ratio	 	Eurodollar Rate Loans	 	Base Rate Loans
	1
	 	 	≤0.75:1.00	 	 	 	1.000	%	 	 	0	%
	2
	 	>0.75:1.00 and ≤1.50:1.00	 	 	1.250	%	 	 	0.250	%
	3
	 	>1.50:1.00 and ≤2.25:1.00	 	 	1.500	%	 	 	0.500	%
	4
	 	 	>2.25:1.00	 	 	 	1.750	%	 	 	0.750	%

 

 

	 	 	 

	 

	 	Any increase or decrease in the Applicable Margin from a change in the
Consolidated Leverage Ratio shall become effective as of the first
Business Day immediately following the date a certificate is delivered
pursuant to Section 5.1(c) of the Incorporated Agreement: provided,
that, if such certificate is not delivered when due in accordance with
such Section, then Pricing Level 4 shall apply as of the first Business
Day after the date on which such certificate was required to have been
delivered until such certificate is delivered, after which the
Applicable Margin shall be determined from such certificate. The
Applicable Margin in effect from the date hereof through the date on
which such certificate in respect of the Reference Period ending on the
last day of the third full fiscal quarter completed after the date of
this Agreement shall be determined based on Pricing Level 3.
	 
	 	 
	Base Rate:

	 	For any day, a fluctuating rate per annum equal to the rate of interest
in effect for such day as publicly announced from time to time by HSBC
Bank USA as its “prime rate.” The “prime rate” is a rate set by HSBC
Bank USA based upon various factors including HSBC Bank USA’s costs and
desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans, which may be priced
at, above, or below such announced rate. Any change in such prime rate
announced by HSBC Bank USA shall take effect at the opening of business
on the day specified in the public announcement of such change.
	 
	 	 
	Base Rate Loan:

	 	Any portion of the Term Loan bearing interest based on the Base Rate.
	 
	 	 
	Breakage Costs:

	 	Any loss, cost or expense incurred by the Lender (including any loss of
anticipated profits and any loss or expense arising from the liquidation
or reemployment of funds obtained by the Lender to maintain the relevant
Eurodollar Rate Loan or from fees payable to terminate the deposits from
which such funds were obtained) as a result of (i) any continuation,
conversion, payment or prepayment of any Eurodollar Rate Loan on a day
other than the last day of the Interest Period therefor (whether
voluntary, mandatory, automatic, by reason of acceleration, or
otherwise); or (ii) any failure by the Borrower to prepay, borrow,
continue or convert any Eurodollar Rate Loan on a date or in the amount
notified by the Borrower. The certificate of the Lender as to its costs
of funds, losses and expenses incurred shall be conclusive absent
manifest error.
	 
	 	 
	Business Day:

	 	Any day other than a Saturday, Sunday, or other day on which commercial
banks are authorized to close under the laws of, or are in fact closed
in, the State of New York or the state where the Lender’s lending office
is located and, if such day relates to any Eurodollar Rate Loan, means
any such day on which dealings in Dollar deposits are conducted by and
between banks in the London interbank eurodollar market.
	 
	 	 
	Closing Date:

	 	The first date all the conditions precedent in Paragraph 2 are satisfied.
	 
	 	 
	Control:

	 	The possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through
the ability to exercise voting power, by contract or otherwise.
“Controlling” and “Controlled” have meanings correlative thereto.

 

 

	 	 	 

	Default:

	 	Any event or condition that constitutes an Event of Default or that, with the
giving of any notice, the passage of time, or both, would be an Event of Default.
	 
	 	 
	Dollar or $:

	 	The lawful currency of the United States of America.
	 
	 	 
	Eurodollar Rate:

	 	The rate per annum equal to (i) the British Bankers Association LIBOR Rate (“BBA
LIBOR”), as published by Reuters (or such other commercially available source
providing quotations of BBA LIBOR as may be designated by the Lender from time to
time) at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest Period
or, (ii) if such rate is not available at such time for any reason, the rate per
annum determined by the Lender to be the rate at which deposits in Dollars for
delivery on the first day of such Interest Period in same day funds in the
approximate amount of the Eurodollar Rate Loan being made, continued or converted
and with a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch to major banks in the London interbank eurodollar market at
their request at approximately 11:00 a.m. (London time) two Business Days prior to
the commencement of such Interest Period.
	 
	 	 
	Eurodollar Reserve 

Percentage:

	 	For any day during any Interest Period, the reserve percentage (expressed as a
decimal, carried out to five decimal places) in effect on such day applicable to
the Lender under regulations issued from time to time by the Board of Governors of
the Federal Reserve System for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement) with
respect to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”). The Adjusted Eurodollar Rate for each outstanding Eurodollar Rate
Loan shall be adjusted automatically as of the effective date of any change in the
Eurodollar Reserve Percentage.
	 
	 	 
	Eurodollar Rate Loan:

	 	Any portion of the Term Loan bearing interest based on the Adjusted Eurodollar Rate.
	 
	 	 
	Event of Default:

	 	Has the meaning set forth in Paragraph 4.
	 
	 	 
	Federal Funds Rate:

	 	For any day, the rate per annum equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal Reserve
Bank of New York on the Business Day next succeeding such day;
provided that (a) if
such day is not a Business Day, the Federal Funds Rate for such day shall be such
rate on such transactions on the next preceding Business Day as so published on the
next succeeding Business Day, and (b) if no such rate is so published on such next
succeeding Business Day, the Federal Funds Rate for such day shall be the average
rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to
the Lender on such day on such transactions as determined by the Lender.

 

 

	 	 	 

	Incorporated Agreement:

	 	The Credit Agreement, dated as of June 13, 2008, as amended by the First Amendment dated as of
July 10, 2008, and as amended and restated as of August 14, 2008, and as amended as of December
19, 2008, among the Borrower, Parexel International Holding B.V. and Parexel International
Holding UK Limited, as borrowers, certain subsidiaries of the borrowers, the lenders party
thereto, JPMorgan Chase Bank, N.A., as administrative agent and the other agents and arrangers
party thereto, as amended prior to the date hereof. All references to the Incorporated Agreement
shall mean the Incorporated Agreement as in effect on the date hereof, without giving effect to
any amendment, supplement or other modification thereto or thereof after the date hereof.
	 
	 	 
	Indemnitee:

	 	Has the meaning set forth in Paragraph 5(i).
	 
	 	 
	Interest Period:

	 	For each Eurodollar Rate Loan, (a) initially, the period commencing on the date the Eurodollar
Rate Loan is disbursed or converted from a Base Rate Loan and (b) thereafter, the period
commencing on the last day of the preceding Interest Period, and, in each case, ending on the
earlier of (x) the Maturity Date and (y) one, two or three months thereafter, as requested by the
Borrower; provided that:

     (i) any Interest Period that would otherwise
end on a day that is not a Business Day shall
be extended to the next succeeding Business
Day unless such Business Day falls in another
calendar month, in which case such Interest
Period shall end on the next preceding
Business Day; and

     (ii) any Interest Period which begins on the
last Business Day of a calendar month (or on
a day for which there is no numerically
corresponding day in the calendar month at
the end of such Interest Period) shall end on
the last Business Day of the calendar month
at the end of such Interest Period.

	 	 	 

	Loan Documents:

	 	This Agreement and the promissory note, if any, delivered in connection with this Agreement.
	 
	 	 
	Maturity Date:

	 	June 30, 2011
	 
	 	 
	Person:

	 	Any natural person, corporation, limited liability company, trust, joint venture, association,
company, partnership, governmental authority or other entity.
	 
	 	 
	Responsible Officer

	 	The chief executive officer, president, chief financial officer, treasurer, secretary, or vice
president of Borrower or any other person authorized by the Board of Directors of Borrower to
sign Loan Documents on its behalf.exv10w1

Exhibit 10.1

			
	 	 	 
	Execution Copy
	 	YAHOO! PUBLISHER NETWORK CONTRACT #1-26652287

	 	 	 
	PUBLISHER: LOCAL.COM CORPORATION	 	PUBLISHER TAX ID: 33-0849123
	Start Date: The latter date set opposite of either Yahoo!
Inc.’s or Publisher’s signature.

	 	End Date: July 31, 2011.

This Agreement shall terminate and supersede the Yahoo! Publisher Network Agreement #205132 between Yahoo! Inc., as
successor-in-interest to Overture Services, Inc., and Local.com Corporation, formerly known as Interchange Corporation, entered into
as of October 17, 2005, as amended. After the End Date, this Agreement will automatically renew for additional thirty (30) day
periods unless either party provides the other party with a thirty (30) day notice of non-renewal.

Capitalized terms not defined herein shall have the meanings ascribed to them in Attachment B hereto.

Deployment of Services on Publisher’s Offerings:

A. Results Hosting Sites

1. Link = Search Box; Results = Paid Search Results, Web Search Results; Publisher’s Offering = the following Sites: www.local.com,
www.localconnect.com, www.mrlocal.com and www.premierguide.com (sometimes referred to herein individually or collectively as “Results Hosting Sites”).

2. Link = Hyperlinks; Results = Hyperlink Results, Web Search Results; Publisher’s Offering = Results Hosting Sites.

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

***

D. Mapped Domains

1. Link = Domain Match Link; Results = Domain Match Results, Web Search Results; Publisher’s Offering = Mapped Domains (as defined in
Attachment D).

Implementation:

	•	 	As shown in Attachment A and as described in this SO and Attachments
	 
	•	 	Publisher will launch services within ten (10) business days of receiving the production feed from Yahoo!.
	 
	•	 	***

Compensation:

A. For Paid Search Results, Matched Ads, Domain Match Results and Hyperlink Results on all Publisher’s Offerings *** Yahoo! will pay
Publisher a percentage of Adjusted Gross Revenue in accordance with the following table; Adjustment: *** of Gross Revenue.

	 	 	 
	Gross Revenue for the applicable calendar Month:	 	Publisher’s Percentage of Adjusted Gross Revenue:
	Up to $***

	 	***%
	Greater than $*** and up to $***

	 	***%
	Greater than $***

	 	***%

					
	 	 	 	 	 
	SO v3.3
	 	1
	 	Yahoo! Confidential

			
	 
	***	 	- Portions of this page have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission

 

 

			
	 	 	 
	Execution Copy
	 	YAHOO! PUBLISHER NETWORK CONTRACT #1-26652287

***

B. For Paid Search Results, Matched Ads, Domain Match Results and Hyperlink Results ***, Yahoo! will pay Publisher ***% of Adjusted
Gross Revenue; Adjustment: *** of Gross Revenue.

***

Non-Disclosure
Agreement (“NDA”) effective date: June 8, 2010

Notices will be delivered in accordance with Section 22 of Attachment B to:

	 	 	 	 	 	 	 
	PUBLISHER	 	YAHOO! INC.
	7555 Irvine Center Drive, Irvine, CA 92618	 	3333 W. Empire Avenue, Burbank, CA 91504
	Fax: 949-784-0880

	 	Attn: General Counsel
	 	Fax: 818-524-3001
	 	Attn: General Counsel

Publisher and Yahoo! agree to this Service Order and Attachments A, B, C and D, and all Exhibits. Signed:

	 	 	 	 	 	 	 	 	 	 	 

	LOCAL.COM CORPORATION	 	 	 	YAHOO! INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Brenda Agius
 

	 	 	 	By:
	 	/s/ Al Echamendi
 

	 	 
	 
	Name:

	 	Brenda Agius
	 	 	 	Name:
	 	Al Echamendi	 	 
	 
	Title:

	 	CFO
	 	 	 	Title:
	 	Sr. Director, Business Development	 	 
	 
	Date:

	 	8/25/2010
	 	 	 	Date:
	 	8/25/10	 	 

					
	 	 	 	 	 
	SO v3.3
	 	2
	 	Yahoo! Confidential

			
	 
	***	 	- Portions of this page have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission

 

 

			
	 	 	 
	Execution Copy
	 	YAHOO! PUBLISHER NETWORK CONTRACT #1-26652287

ATTACHMENT A — IMPLEMENTATION REQUIREMENTS

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

	A.	 	Requirements for all Links, Queries and Results

	1.	 	Publisher will implement all Links and Results in a manner that is substantially similar in
design to the mockups, including but not limited to, margins, text size, color, font,
shading/background, spacing, blank areas, content categories, number of listings, section and
placement on the page (top to bottom and left to right). ***

	2.	 	Publisher will display the labels and headings in a manner that is substantially similar in
design to the mockups (or any labels, headings or notices provided by Yahoo! or required by
law), with a nearby prominent link to a webpage that explains in language approved by Yahoo!
that certain Results are sponsored advertising. Yahoo! reserves the right to include links
within the Results to further clarify the sponsored nature of the Results ***

	3.	 	Publisher will display all Results on the next webpage displayed to a user after a Query,
with no interstitial content, at the same time as it displays the other content on that
webpage.

	4.	 	Publisher will not cache Results.

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

	6.	 	Publisher will not truncate the full titles, descriptions and URLs provided by Yahoo! and
will not modify any part of the Results. Publisher will display Results in the language
provided by Yahoo!.

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

	8.	 	***

	9.	 	***

	10.	 	***

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

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

	13.	 	Yahoo! reserves the right for certain keywords, in Yahoo!’s sole discretion, to deliver no
Results and provide a response that no Results are being delivered.

	14.	 	Within 90 days of the Start Date, Publisher will conspicuously post a privacy policy that
complies with all applicable laws, rules and regulations on each of Publisher’s Offerings that
are owned and operated by Publisher. Publisher also represents and warrants that its contracts
with *** include a similar privacy policy requirement ***.

B. Additional Requirements for Matched Ads and/or Hyperlinks

	1.	 	The parties will agree in writing on the pages within Publisher’s Offerings that will display
Matched Ads and/or Hyperlinks (“Ad Pages”), using keywords approved in writing or
dynamically determined by Yahoo!. Publisher will display Matched Ads and/or Hyperlinks to all
users who navigate to the Ad Pages, to the extent Matched Ads and/or Hyperlinks are provided
by Yahoo!. Publisher will allow the Hyperlinks to send Yahoo! a Query each time

					
	 	 	 	 	 
	SO v3.3
	 	3
	 	Yahoo! Confidential

			
	 
	***	 	- Portions of this page have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission

 

 

			
	 	 	 
	Execution Copy
	 	YAHOO! PUBLISHER NETWORK CONTRACT #1-26652287

	 	 	that a user uses a Hyperlink. Yahoo! reserves
the right to require Publisher to remove Matched Ads and/or Hyperlinks from any webpage or to
stop using any keyword for any reason or no reason.

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

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

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

	C.	 	Additional Requirements for Paid Search and/or Web Search

	1.	 	Publisher will implement the Search Box on all search-oriented pages within Publisher’s
Offerings, any pages delivered to users by Publisher that contain Paid Results, and any other
pages mutually agreed to by the parties.

	D.	 	Additional Requirements for Graphics

	1.	 	Implementations. Publisher may display relevant non-clickable images from a United
States Advertiser’s website in connection with such Advertiser’s Paid Search Results displayed
on a results page (“Graphics”); such Graphics shall only be provided by a third party
approved in writing by Yahoo! (“Approved Graphics Provider”) in a manner that is
substantially similar to the mock-ups. If Publisher wishes to alter the manner in which
Graphics are displayed, Publisher must provide written notice thereof to Yahoo! and Yahoo! may
approve or disapprove such new design. For the avoidance of doubt, the Graphics shall not
redirect the user to an Advertiser’s web page when clicked upon by a user.

	2.	 	Representations and Warranties. Publisher represents and warrants that it has the
legal right, power and authority to exploit the Graphics as contemplated in this Agreement.

	3.	 	Prohibited Advertisers. “Prohibited Advertisers” are Advertisers that Yahoo!
believes for business or contractual reasons should not have Graphics displayed in connection
with their Paid Search Results. If applicable, Yahoo! shall provide Publisher with a list of
Prohibited Advertisers (“Prohibited Advertiser List”) for whom Graphics shall not be
displayed, and Publisher shall cause the Approved Graphics Provider to remove the Graphics
from display in connection with Prohibited Advertiser Paid Search Results. Yahoo! shall have
the right to update the Prohibited Advertiser List from time to time in its sole discretion.

	4.	 	Display. Yahoo! shall have the right to request that Publisher block or change the
Graphics used for one or more Advertisers for any reason or no reason. It shall be
Publisher’s responsibility to cause the Approved Graphics Provider to change or block the
Graphics immediately upon its receipt (including by email) of such request hereunder from
Yahoo!. Yahoo! may, at its option, contact the Approved Graphics Provider directly to effect
the foregoing. ***

	5.	 	Indemnification. In addition to and without limitation of Publisher’s
indemnification obligations under Section 15 of Attachment B (Terms and Conditions) to the
Agreement, Publisher shall defend and/or settle, and pay damages awarded pursuant to, any
claim brought against Yahoo! and/or Yahoo! Related Parties, its or their officers, directors,
employees, agents and third party service providers, arising from or related to any aspect of
Publisher’s use of Graphics, including but not limited to the selection or display of Graphics
in connection with Publisher’s Offerings and/or any technology used in the implementation of
Graphics as outlined herein. ***

	6.	 	Termination. In addition to the foregoing, Yahoo! shall have the right, for any
reason or no reason, in its sole discretion, to immediately require Publisher to terminate the
implementation of Graphics described in this Section D.

***

					
	 	 	 	 	 
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MOCKUPS

Mockups of Graphics on Publisher’s Offerings

The implementation of Graphics on Publisher’s Offerings shall be mutually agreed upon by the

parties in writing prior to Publisher’s use of Graphics on Publisher’s Offerings.

Mockups of Results Hosting Sites

www.localconnect.com

***

www.mrlocal.com

***

www.local.com

***

***

					
	 
	 
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Mockups for ***

Links

***

					
	 
	 
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Mockups for ***

***

					
	 
	 
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Mockups of ***on Publisher’s Offerings

The implementation of *** on Publisher’s Offerings shall be mutually agreed upon by the parties in
writing prior to Publisher’s use of *** on Publisher’s Offerings.

					
	 
	 
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ATTACHMENT B — TERMS AND CONDITIONS

The parties agree to the following:

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

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

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

3. Publisher’s Offerings. Publisher represents and warrants that the listed Publisher’s
Offerings are all of Publisher’s websites, emails, software applications and domains that include
services similar to those covered by this Agreement, as of the Start Date. This Agreement applies
to the top-level domains of any Web sites (including successor sites) that are included as
Publisher’s Offerings, but excludes any web pages (even those within the top level domain of a
Publisher’s Offering) that are intended for users outside the Territory, as such defined term may
be amended pursuant to Section 4 below. For the avoidance of doubt, “all web pages within the
top-level domain of the Site” includes web pages under the “local.com” domain that is preceded by a
city, state or other local or regional designation (e.g., “amarillo.local.com”).

4. ***

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

6. Payment. Yahoo! or a Yahoo! Related Party will pay Publisher within 45 days after the
end of the calendar month in which the relevant Results appeared on Publisher’s Offerings. Payment
will be made in US dollars. If Advertisers pay in any other currency, Yahoo! will calculate
payment using the average exchange rate as published by a nationally recognized source (e.g.,
Oanda). If the Territory includes countries other than the United States, Publisher acknowledges
that payment will only be made after Publisher fulfills Yahoo!’s invoicing requirements. Yahoo! may
offset payments by any amounts Publisher owes to Yahoo!, including previous overpayments. In the
event that Yahoo! refunds amounts to Advertisers where the amount of the refund attributable to
Publisher’s Offerings is in excess of the amount Yahoo! owes Publisher, Publisher will pay Yahoo!
for such amounts within 30 days of Yahoo!’s request (e.g., if the Advertiser refund attributable to
Publisher’s Offerings is $100 and Yahoo! owes Publisher $80, Publisher shall pay Yahoo! $20 within
30 days of Yahoo!’s request). For clarity, in no instance will Publisher be responsible for amounts
refunded by Yahoo! to Advertisers in excess of the amounts earned by Publisher attributable to
Publisher’s Offerings for such Advertisers during the time period relevant for the refund (i.e.,
Publisher will never be required to refund more than it has earned for the time period relevant for
the refund). Yahoo! may make payments only when Publisher’s balance exceeds US $250.00 (or until
termination or expiration of this Agreement). Except as specifically set forth in this Section,
Yahoo! will retain all revenues derived from or in connection with its services.

7. Reports. Publisher will receive a monthly report describing how the payment was
determined. Yahoo! shall provide Publisher with a login and password to access, at no charge to
Publisher, the Partner Management Center or succeeding service, which provides preliminary online
data on the performance of the Results on Publisher’s Offerings, including, without limitation,
number of searches, clicks, bidded searches, and other revenue data. Yahoo! will, upon Publisher’s

					
	 
	 
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request, supply Publisher with up to *** to track such information (or such number of *** in excess
of *** as mutually agreed by the parties in writing, email sufficing).

8. Exclusivity.

(a) On the *** Publisher’s Offering (as further defined in Section 29 of this Attachment B),
Publisher will ensure that Yahoo! is the exclusive source of Paid Listings. ***

(b) ***

(c) ***

(d) ***

(e) ***

(f) Publisher agrees that any violation of this Section 8 will cause Yahoo! irreparable harm for
which there is no adequate remedy at law. Publisher waives any requirement for a bond in connection
with any claim for injunctive relief. ***

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

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

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

12. Information and Cooperation. For each Query and each click on a Paid Result, Publisher
will provide: ***. Publisher will provide this information at the time a Query is sent to Yahoo!
and when a user clicks on a Paid Result. For clarity, Yahoo! will not request and Publisher will
not share any personally identifiable information with Yahoo!. Additionally, Publisher will
utilize the URLs and other source feed indicators designated from time to time by Yahoo!. The
parties will cooperate in a commercially reasonable manner to minimize automated, fraudulent or
lower quality traffic. Yahoo! will have no obligation to make payments in instances when Publisher
has failed to utilize designated source feed indicators correctly. Yahoo! shall determine the
validity and quality of all traffic in its reasonable discretion.

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

14. Yahoo! Indemnification Yahoo! will indemnify, defend and/or settle, and pay damages
awarded pursuant to, any third party claim brought against Publisher and/or Publisher’s officers,
directors, employees or agents, (a) which alleges that the Marks or Yahoo!’s technology used in
connection with providing Paid Results infringes or misappropriates any valid intellectual property
right in the countries included in the Territory or (b) by an Advertiser alleging that Yahoo! does
not have the right to include such Advertiser’s content in Paid Results; provided that Publisher
promptly notifies Yahoo! in writing of any such claim, promptly tenders the control of the defense
and settlement of any such claim to Yahoo! (at Yahoo!’s expense and with Yahoo!’s choice of

					
	 
	 
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counsel), and cooperates fully with Yahoo! (at Yahoo!’s request and expense) in defending or
settling such claim, including but not limited to providing any information or materials necessary
for Yahoo! to perform the foregoing. Yahoo! will not enter into any settlement or compromise of
any such claim, which settlement or compromise would result in any liability to Publisher or
require Publisher to take any affirmative action, without Publisher’s prior consent, which will not
be unreasonably withheld. Notwithstanding the foregoing, Yahoo!’s patent infringement indemnity
obligation shall not apply to any portion of a patent infringement claim that directly results from
or arises out of (i.e., such portion of a patent infringement claim that would not have arisen but
for the issues raised in (i) though (iv) below): (i) the combination, distribution or use of
Yahoo!’s technology, by or on behalf of Publisher, with software, services, products, or any other
subject matter, that has not been expressly and specifically directed or permitted by Yahoo!
pursuant to the terms of this Agreement, or otherwise contemplated by this Agreement, to the extent
that such claim would have been avoided by the non-combined or independent use of Yahoo!’s
technology; (ii) modification of Yahoo!’s technology by or on behalf of Publisher (except by Yahoo!
on behalf of Publisher) to the extent that such claim would have been avoided by use of the
unmodified Yahoo! technology; (iii) continued use of the allegedly infringing Yahoo! technology, by
or on behalf of Publisher, after Yahoo! notifies Publisher of the infringement allegation and
provides Publisher with functionally equivalent subject matter, to the extent that such equivalent
subject matter would have avoided the alleged infringement; or (iv) utilization of Yahoo!’s
technology by Publisher outside the scope of this Agreement.

15. Publisher Indemnification. Publisher will indemnify, defend and/or settle, and pay
damages awarded pursuant to, any third party claim brought against Yahoo! and/or Yahoo!’s officers,
directors, employees or agents, which (a) alleges that Publisher’s Offerings or any technological
solution created by Publisher or a third party to generate and display Hyperlinks on search results
pages infringes or misappropriates any valid intellectual property right in the countries included
in the Territory or (b) arises out of Publisher’s modification of the Links or Results in any way
or the use of the Results in violation of the Agreement; provided that Yahoo! promptly notifies
Publisher in writing of any such claim, promptly tenders the control of the defense and settlement
of any such claim to Publisher (at Publisher’s expense and with Publisher’s choice of counsel), and
cooperates fully with Publisher (at Publisher’s request and expense) in defending or settling such
claim, including but not limited to providing any information or materials necessary for Publisher
to perform the foregoing. Publisher will not enter into any settlement or compromise of any such
claim, which settlement or compromise would result in any liability to Yahoo! or require Yahoo! to
take any affirmative action, without Yahoo!’s prior consent, which will not be unreasonably
withheld. Notwithstanding the foregoing, Publisher’s patent infringement indemnity obligation shall
not apply to any portion of a patent infringement claim that directly results from or arises out of
(i.e., such portion of a patent infringement claim that would not have arisen but for the issues
raised in (i) though (iv) below): (i) the combination, distribution or use of Publisher’s
technology, by or on behalf of Yahoo!, with software, services, products, or any other subject
matter, that has not been expressly and specifically directed or permitted by Publisher pursuant
to, or otherwise contemplated by, the terms of this Agreement, to the extent that such claim would
have been avoided by the non-combined or independent use of Publisher’s technology; (ii)
modification of Publisher’s technology by or on behalf of Yahoo! (except by Publisher on behalf of
Yahoo!) to the extent that such claim would have been avoided by use of the unmodified Publisher
technology; (iii) continued use of the allegedly infringing Publisher technology, by or on behalf
of Yahoo!, after Publisher notifies Yahoo! of the infringement allegation and provides Yahoo! with
functionally equivalent subject matter, to the extent that such equivalent subject matter would
have avoided the alleged infringement; or (iv) utilization of Publisher’s technology by Yahoo!
outside the scope of this Agreement.

16. DISCLAIMER OF WARRANTIES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, (A)
YAHOO! AND ITS LICENSORS ARE NOT RESPONSIBLE FOR ANY CONTENT PROVIDED HEREUNDER OR FOR ANY WEB
SITES THAT CAN BE LINKED TO OR FROM THE RESULTS, (B) PUBLISHER ACKNOWLEDGES THAT THE PAID
MARKETPLACES ARE CONTINUOUSLY CHANGING AND THAT YAHOO! RESERVES THE RIGHT TO UPDATE SUCH
MARKETPLACES, PRODUCTS AND SERVICES, AND (C) YAHOO! AND ITS LICENSORS MAKE

					
	 
	 
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NO WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WITHOUT
LIMITATION WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, AND
NONINFRINGEMENT.

17. LIMITATION OF LIABILITY. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER
PARTY WILL BE LIABLE FOR ANY LOST PROFITS, COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR
FOR ANY OTHER INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT, HOWEVER CAUSED, AND UNDER WHATEVER CLAIM OR THEORY OF LIABILITY
BROUGHT (INCLUDING, WITHOUT LIMITATION, UNDER ANY CONTRACT, NEGLIGENCE OR OTHER TORT THEORY OF
LIABILITY) EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY’S AGGREGATE LIABILITY FOR DIRECT
DAMAGES UNDER THIS AGREEMENT (CUMULATIVELY) SHALL BE LIMITED TO ***.

NOTWITHSTANDING THE FOREGOING, THE ABOVE EXCLUSIONS AND LIMITATIONS OF LIABILITY WILL NOT APPLY TO:
(i) A PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS; (ii) AN INTENTIONAL BREACH BY PUBLISHER OF
ITS EXCLUSIVITY OBLIGATIONS; or (III) ANY AMOUNTS PAYABLE UNDER A PARTY’S EXPRESS INDEMNIFICATION
OBLIGATIONS; PROVIDED, HOWEVER, THAT EACH PARTY’S AGGREGATE LIABILITY UNDER ITS RESPECTIVE
INDEMNIFICATION OBLIGATION IN SECTION 14 AND SECTION 15 OF ATTACHMENT B SHALL BE LIMITED TO ***.

18. Abuse of Services. Unless specifically allowed in this Agreement, (1) none of the
circumstances described *** below will occur on or in connection with Publisher’s Offerings; ***

(a) Queries or clicks generated by any automated or fraudulent means, provided that only for the
purposes of constituting a breach by Publisher under this Agreement, the following shall apply:
*** For clarity, any and all Queries or clicks generated by automated or fraudulent means shall
not be counted for purposes of calculating any compensation owed to Publisher, ***; and all
suspension and termination rights set forth below in this Section 18 shall be applicable
immediately ***;

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

(c) Unauthorized implementations, including: (i) use, display, syndication, sublicensing or
delivery of the Links, Results or Marks anywhere other than on Publisher’s Offerings; (ii) Links
placed on or Queries from or after 404 or other error messages; (iii) Queries from, or displays of
Results or Links within pop-over or pop-under windows, in or through a downloadable application, or
in or through an email; or (iv) using a software application that is downloaded to users’ computers
to drive traffic to any website on which Links or Results appear unless the application has been
formally approved by Yahoo!;

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

(e) Adding, deleting or changing terms or characters of a Query by anyone other than the user;

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

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

(h) Purchasing traffic with the intent of directing users to web pages where Paid Results

					
	 
	 
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are the most prominent page element. Yahoo!
acknowledges that the mockups attached hereto have been reviewed by Yahoo! and that the Paid
Results, exactly as reflected on the attached mockups, are not considered by Yahoo! to be “the most
prominent page element” on such web page; or

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

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

If any of the provisions of Section 18 above is violated, Yahoo! may immediately suspend services
upon notice to Publisher. If Publisher fails to cure or prevent the noticed activity within 48
hours after Yahoo! informs Publisher of the violation or if Publisher fails to provide reasonable
assurances that there will be no further violations, Yahoo! may terminate this Agreement
immediately upon notice without liability to Publisher except for any compensation due to Publisher
through the date of termination. If Publisher cures such violation, Yahoo! will promptly (within 1
business day) reinstate the services previously suspended. If Publisher violates the same
provision of this Section 18 more than once *** or any of the provisions of this Section 18 more
than twice, Yahoo! may terminate this Agreement without providing opportunity to cure.

19. Breach/Bankruptcy. Except where this Agreement provides otherwise, either party may
terminate this Agreement if the other party fails to cure any material breach of this Agreement
within 10 days of notice thereof. When Yahoo! is the non-breaching party, Yahoo! may suspend
services to Publisher during the cure period if Yahoo! believes the suspension will prevent harm to
Yahoo! or the Yahoo! network. In addition, either party may suspend performance and/or terminate
this Agreement if the other party makes any assignment for the benefit of creditors or files or has
filed against it any petition under bankruptcy law.

20. Change of Control or Transfer of Assets.

(a) Yahoo! may terminate this Agreement immediately without liability upon the existence of a
Change of Control by Publisher ***. Publisher agrees to notify Yahoo! of a Change of Control by
Publisher within 15 business days of such Change of Control. “Change of Control” means (i)
a merger, consolidation or other reorganization to which Publisher is a party, if the individuals
and entities who were stockholders (or partners or members or others that hold an ownership
interest) of Publisher immediately prior to the effective date of the transaction have “beneficial
ownership” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of less
than eighty percent (80%) of the total combined voting power for election of directors (or their
equivalent) of the surviving entity following the effective date of the transaction, (ii)
acquisition by any entity or group of direct or indirect beneficial ownership in the aggregate of
then issued and outstanding securities (or other ownership interests) of Publisher in a single
transaction or a series of transactions representing in the aggregate twenty percent (20%) or more
of the total combined voting power of Publisher, or (iii) a sale of all or substantially all of
Publisher’s assets.

(b) Publisher will not assign or transfer any Publisher’s Offering to any entity wholly or
partially owned by, controlled by or under common ownership or control with Publisher without
requiring that entity to enter into one of the following, at Yahoo!’s request: (i) an amendment to
this Agreement adding that entity as a party, or (ii) a separate agreement containing terms
substantially similar to this Agreement.

					
	 
	 
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21. Traffic Quality Shortfall. If the traffic quality score for any Publisher’s Offering
for any calendar month is less than *** on the Traffic Quality Scale ***, Yahoo! may notify
Publisher of such traffic quality score. Upon receiving such notice, ***

22. Notice. Notice will become effective when delivered: (a) by courier to the address in
the SO (established by written verification of personal, certified or registered delivery by
courier or postal service); or (b) by fax to the fax number in the SO (established by a
transmission report and followed by a copy sent by courier or certified or registered mail). The
parties will notify each other of updated addresses and/or fax numbers. If (and only if) a party
has failed to furnish an accurate fax number, the other party may notify that party by electronic
mail to that party’s primary contact (followed by a copy sent by courier or certified or registered
mail). Such email notice will become effective when sent, provided that the sender does not
receive a response that the message could not be delivered or an out of office reply.

23. PR. No party will issue a press release or other written public statement regarding
this Agreement without the other party’s written approval (not to be unreasonably delayed), except
that (a) Yahoo! and any Yahoo! Related Party may communicate the general nature of this Agreement
to Advertisers and may list Publisher as a Yahoo! publisher, and (b) if either party is required by
a government agency (such as the SEC) to disclose the existence and/or terms of this Agreement,
then the disclosing party may make such disclosure; provided that, the disclosing party shall (i)
promptly notify the other party of such requirement, (ii) provide the other party with a reasonable
opportunity to review and consent to such disclosure, which consent shall not be unreasonably
withheld, and (iii) reasonably cooperate with the other party to seek confidential treatment or to
obtain an appropriate protective order to preserve the confidentiality. Each party will use
reasonable efforts to give the other party 10 business days prior written notice of its intent to
file this Agreement with the SEC or other similar regulatory agency and will work in good faith
with the other party for the purpose of agreeing upon and incorporating proposed redactions (such
proposed redactions to comply with laws, rules and regulations interpreting securities and other
applicable laws); provided that, in the event this Agreement must be filed with the SEC in
connection with a Form 8-K, the required prior written notice period shall only be 2 business days
No cure period shall apply to a breach of this Section.

24. Assignment. Subject to the restrictions set forth below, this Agreement may be assigned
in whole, or in part and shall inure to the benefit of, and shall be binding upon, the parties’
successors and assigns. Notwithstanding anything contained herein to the contrary, no party shall
assign any of its rights under this Agreement nor delegate any of its duties under this Agreement
without Yahoo!’s or Publisher’s, as applicable, prior written consent (not to be unreasonably
delayed); provided, however, that no such consent is required if an assignment is made by Yahoo! to
a Yahoo! Related Party, or by either party in connection with a Change in Control in which the
acquirer is not a Named Company. Any unauthorized assignment or transfer of this Agreement shall
be null and void and of no force or effect.

25. Agreement. Executed counterparts will each be deemed originals. The parties can rely
on fax copies of the signed Agreement as if they are originals. Only a written instrument executed
by the party expressly waiving compliance may waive any terms of this Agreement. In the event
Publisher does not include a date in its signature block in the SO, the Start Date of this
Agreement will be the date included in Yahoo! Inc.’s signature block. In the event of any
discrepancy regarding the date included in Publisher’s signature block, the earlier date will
control. This Agreement, together with the documents referenced in this Agreement, will contain
the sole and entire understanding of the parties with respect to the subject matter of this
Agreement, and supersedes all prior negotiations, discussions, commitments and understandings
heretofore had between the parties with respect thereto. The parties acknowledge and agree that
they have been represented in the preparation, negotiation, and execution of this Agreement by
legal counsel of their own choice or that they have voluntarily declined to seek such counsel. Any
amendments or modifications to this Agreement must be in writing and signed by an officer of each
party. If any part of this Agreement is invalid, the remainder shall remain in force and the
invalid portion will be replaced with a valid provision coming closest to the parties’ intent and
having like economic effect.

26. Law and Venue. This Agreement is governed by, and will be construed according to the
laws of the State of California, United States of America without regard to conflict of laws rules
that

					
	 
	 
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would otherwise apply laws of any other state or
jurisdiction. Each party hereby consents to non-exclusive personal jurisdiction and venue in the
federal and state courts for Santa Clara County, California.

27. Expiration/Termination. When this Agreement expires or is terminated: all rights and
licenses in this Agreement will terminate immediately and Publisher will immediately cease using
the Links, Results and Marks; Sections 5, 6, 9, 13-17, 22, 23, 25-27 and 29 of this Attachment B,
Sections 6 and 7 of the Domain Match Attachment, *** and any other provisions of this Agreement
that by their terms should survive the expiration or earlier termination of this Agreement will
survive; and Publisher will promptly refund to Yahoo! any unearned portion of any payment.

***

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

29. Definitions.

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

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

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

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

Agreement: see preamble in Attachment B.

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

Category-Specific Local Search Listings: Search result listings provided directly from a
third party’s local commercial database of category-specific advertisers (e.g., travel and hotels).
Hotels.com and servicemagic.com are examples of Category-Specific Local Paid Listing providers.

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

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

Links: Search Boxes that return Paid Search Results, Hyperlinks that return Hyperlink
Results, and Ad Code, to the extent included in the SO.

Local Paid Search Results: means the Paid Search Results that contain locally targeted
information and other content of Advertisers.

Local Section: any section of Paid Listings on a search results page (labeled as “Local
Sponsors” on the mock-up to this Agreement) that is located below the National Section, which Paid
Listings are generated based on bids and locally.

Marks: any Yahoo! trademark shown in the mockups.

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

Named Companies: ***, and any of their subsidiaries that Yahoo! may identify from time to
time upon written notice to Publisher ***

National Section: the top section of Paid Listings on a search results page (labeled as
“Sponsored Results” or “Sponsors” on the mockups to this Agreement), which Paid Listings are
generated based on bids by Advertisers on keywords.

Paid Listings: any search result listing that responds to a search query, keyword query, or
other similar request for which the review, cataloging, collection, maintenance, display, indexing,
ranking, or other activity is paid for by an advertiser, regardless of the method by which payment
is determined (i.e., whether cost-per-clock, cost-per-action, cost-per-impression,
pay-for-placement, paid inclusion or otherwise), and regardless of whether Publisher receives
payment directly.

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

Paid Search Results: the content of Advertisers

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

Publisher Content: all content residing on Publisher’s Offerings, including third party
content, but excluding the Links, Results and Marks.

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

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

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

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

SO: the Service Order.

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

Territory: the following countries or regions where Yahoo! has a paid marketplace: the
United States. The aforementioned countries or regions may be updated upon mutual written
agreement of the parties.

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

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

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

					
	 
	 
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ATTACHMENT D — DOMAIN MATCH ATTACHMENT

	1.	 	Definitions.

	(a)	 	Domain Match Link: the Search Box, Hyperlinks and/or URL of a Mapped Domain to the extent
that Yahoo! agrees to receive Queries from such Links on the Mapped Domains and Landing Pages.

	(b)	 	Domain Match Results: the content of Advertisers served from Yahoo!’s paid marketplace
databases in response to Queries from Landing Pages or in response to the URL of certain
Mapped Domains, which responses are provided for display as sponsored listings. Domain Match
Results do not include Web Search Results.

	(c)	 	Domain Results Page: a webpage that displays Domain Match Results.

	(d)	 	Landing Pages: the webpages hosted by Publisher that display Search Boxes and/or Hyperlinks,
as shown in the mockups.

	(e)	 	Mapped Domains: all of the domain names owned, operated or registered by Publisher that have
been submitted by Publisher to qualify to receive Domain Match Results and that have been
approved by Yahoo! to display Domain Match Results, provided such domain names do not violate
the policies stated below.

	2.	 	Domain Match Implementation. Upon a user typing in a Mapped Domain, Publisher will
directly transfer the user to a Landing Page or Domain Results Page (as determined by Yahoo!’s
mapping technology). Except as shown in the mockups, Publisher will not display or link to
any content on any Landing Page or Domain Results Page without Yahoo!’s prior written consent.

	3.	 	Representations, Warranties and Covenants. Publisher represents and warrants that
Publisher has the right to use each Mapped Domain and that each Mapped Domain (a) does not
violate the intellectual property rights of any third party; (b) does not violate any
applicable law; (c) is not subject to any injunction; (d) is not libelous, defamatory, or
obscene; and (e) does not violate the policies described below. If any of the foregoing
(a)-(e) apply to a Mapped Domain, then Publisher shall not redirect such Mapped Domain to any
webpage associated with Yahoo!, or on which Links or Results are available. Publisher will
promptly notify Yahoo! of any claim made or threatened against it concerning any Mapped
Domain.

	4.	 	Yahoo! Rights. Notwithstanding anything in this Agreement to the contrary and
without limitation of Yahoo!’s other rights and remedies, Yahoo! may, for any reason or no
reason, in its sole discretion: (a) decline to respond to Queries originated from one or more
Mapped Domains; or (b) require Publisher to block the display of one or more Landing Pages or
Domain Results Pages if Yahoo! reasonably believes that (i) Publisher does not have the right
to use or to associate data or content with a corresponding Mapped Domain, or (ii) the
association of data or content on the Landing Page or Domain Results Page in response to a
Mapped Domain (A) violates the intellectual property rights of a third party, (B) is libelous,
defamatory or obscene, or (C) might create liability for Yahoo!.

	5.	 	Policies. Yahoo! may change or add to these policies in its sole discretion by
informing Publisher in writing (email sufficing), provided that Publisher shall have ten (10)
days to become compliant with such new policies and *** the exclusivity and other applicable
provisions set forth elsewhere in this Agreement, including within other attachments, will be
applied to the Mapped Domains, as appropriate to each such Mapped Domain (e.g., a Mapped
Domain owned by Publisher will be deemed a Site pursuant to the Agreement and a domain owned
by a third party, but operated by Publisher, would be deemed a *** pursuant to the Agreement,
as applicable); provided however that Yahoo! has the right to review and approve the new
implementation for the Site, ***. Publisher will not redirect to Yahoo! any domain names
that include the following:

	(a)	 	trademarks, company names, and names of specific natural persons (including misspellings),
such as McDonalds.com, macdnlds.com, xcerox.com, micaljordan.com;

	(b)	 	words which would evoke a question of legality, such as automatic or military-style

					
	 
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	 	 	assault weapons, cracked or pirated software (eg, words like appz, warez, cracks, crackz, hacks,
hackz), falsely obtained passwords (eg, words like passwordz), prostitution services, and
questionable substances or words alluding to the ingestion of questionable substances;
	 
	(c)	 	defamatory, libelous or threatening language, such as racial or religious epithets or
language related to doing physical harm to people or their property;

	(d)	 	vulgar or obscene language, such as fckyu.com;

	(e)	 	any language that might advocate or glorify torture, rape or any other illegal or harmful
act; and
	 
	(f)	 	any language that is sexually explicit, including but not limited to language related to
prostitution, child pornography or underage sex, bestiality, necrophilia, incest or
pedophilia.

6. Compensation.

	(a)	 	Without limiting Yahoo!’s other rights or remedies (including the right to recover any
damages permitted by the Limitation of Liability provision), if Publisher violates any
provision of Yahoo!’s policies, Yahoo! may assess a fee of *** of Domain Match
Results Gross Revenue for the Publisher’s Offerings in violation of the policies for the month
in which such violation was committed, which fee helps to cover Yahoo!’s costs in monitoring
and administering these policies. Violations of the policies include but are not limited to
misuse of the feed provided by Yahoo!, changes to the mapping determined by Yahoo!’s
technology and disapproved implementations of Landing Pages or Domain Results Pages.

	(b)	 	If Publisher generates any revenue while in violation of any requirement of this Domain Match
Attachment, Yahoo! reserves the right to exclude the revenue attributable to such violation
from its calculation of any amounts owed to Publisher.

	7.	 	Indemnity. Without limiting Publisher’s other indemnification obligations under this
Agreement, Publisher will (a) indemnify, defend and/or settle, and pay damages awarded
pursuant to, any third party claim brought against Yahoo!, any Yahoo! Related Party and any
Advertiser, arising out of or related to any Mapped Domain; and (b) reimburse Yahoo! for any
reasonable payment made to its Advertisers in settlement of costs, attorneys fees and damages
incurred by such Advertisers in connection with bona fide, non-frivolous investigations or
claims against such Advertisers, resulting from any Mapped Domain or any breach of this Domain
Match Attachment, even if no formal claim has been brought against Yahoo! or its Advertisers
or tendered pursuant to the procedure set forth above. ***

	8.	 	Misc. In the event of a conflict between the terms of this Domain Match Attachment
and any other provision of the Agreement, the terms of this Domain Match Attachment will
govern as to Domain Match. In the event that Publisher becomes aware of any applicable law or
regulation that contains more stringent requirements than this Domain Match Attachment after
reasonable inquiry, Publisher will inform Yahoo! and will comply with the more stringent
requirement.

					
	 
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EXHIBIT 1 TO THE AGREEMENT

***

					
	 
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EXHIBIT 2 TO THE AGREEMENT

***

					
	 
	
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