Document:

EX-10.15.1

 

EXHIBIT 10.15.1

CONFIDENTIAL TREATMENT REQUESTED

MSA No.: MSAX063015TPS

MASTER SERVICES AGREEMENT

BETWEEN

EMBARQ MANAGEMENT COMPANY

AND

SYNACOR, INC.

			
	 	 	 
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TABLE OF CONTENTS

	 	 	 	 	 
	1.0 DEFINITIONS
	 	 	6	 
	 
	 	 	 	 
	2.0 SERVICES
	 	 	8	 
	 
	 	 	 	 
	2.1 Scope of Services
	 	 	8	 
	 
	 	 	 	 
	2.2 No Volume Commitment
	 	 	8	 
	 
	 	 	 	 
	2.3 Supplier’s Performance
	 	 	8	 
	 
	 	 	 	 
	2.4 Limitations
	 	 	9	 
	 
	 	 	 	 
	2.5 Acceptance of Services and Deliverables
	 	 	9	 
	 
	 	 	 	 
	2.6 Changes to Services
	 	 	9	 
	 
	 	 	 	 
	2.7 Restrictions
	 	 	9	 
	 
	 	 	 	 
	3.0 EMBARQ RESPONSIBILITIES
	 	 	10	 
	 
	 	 	 	 
	3.1 Embarq Support; Supplier Status
	 	 	10	 
	 
	 	 	 	 
	3.2 Materials and Equipment
	 	 	10	 
	 
	 	 	 	 
	4.0 COMPENSATION and INVOICING
	 	 	10	 
	 
	 	 	 	 
	4.1 Compensation
	 	 	10	 
	 
	 	 	 	 
	4.2 Expenses
	 	 	11	 
	 
	 	 	 	 
	4.3 Taxes
	 	 	11	 
	 
	 	 	 	 
	4.4 Invoicing, Itemization and Payment Procedures
	 	 	11	 
	 
	 	 	 	 
	4.5 Offset Right
	 	 	12	 
	 
	 	 	 	 
	4.6 No Payment Upon Material Breach
	 	 	12	 
	 
	 	 	 	 
	4.7 Prompt Invoicing
	 	 	12	 
	 
	 	 	 	 
	4.8 Electronic Ordering
	 	 	12	 
	 
	 	 	 	 
	5.0 AFFILIATE TRANSACTIONS
	 	 	13	 
	 
	 	 	 	 
	5.1 Embarq Affiliates’ Purchase Rights
	 	 	13	 
	 
	 	 	 	 
	5.2 Contractual Liability
	 	 	13	 
	 
	 	 	 	 
	5.3 Acquisitions and Divestitures
	 	 	13	 
	 
	 	 	 	 
	6.0 TERM AND TERMINATION
	 	 	13	 

			
	 	 	 
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	6.1 Term
	 	 	13	 
	 
	 	 	 	 
	6.2 Termination for Cause
	 	 	14	 
	 
	 	 	 	 
	6.3 [*]
	 	 	14	 
	 
	 	 	 	 
	6.4 Termination for Financial Instability
	 	 	15	 
	 
	 	 	 	 
	6.5 Transition Services
	 	 	15	 
	 
	 	 	 	 
	6.6 Effect of Termination
	 	 	15	 
	 
	 	 	 	 
	6.7 No Liability
	 	 	16	 
	 
	 	 	 	 
	7.0 Supplier Warranties
	 	 	16	 
	 
	 	 	 	 
	7.1 General Services and Deliverables Warranty
	 	 	16	 
	 
	 	 	 	 
	7.2 Virus Warranty
	 	 	17	 
	 
	 	 	 	 
	7.3 Malicious Technology
	 	 	17	 
	 
	 	 	 	 
	7.4
Compliance with Laws; Permits
	 	 	17	 
	 
	 	 	 	 
	7.5 Subcontracts
	 	 	18	 
	 
	 	 	 	 
	7.6 Certification of Legal Status
	 	 	18	 
	 
	 	 	 	 
	7.7 Breach of Warranty
	 	 	18	 
	 
	 	 	 	 
	8.0 Embarq Warranties
	 	 	18	 
	 
	 	 	 	 
	9.0 PERSONNEL
	 	 	18	 
	 
	 	 	 	 
	9.1
Required Compliance with Agreement
	 	 	18	 
	 
	 	 	 	 
	9.2 Removal
	 	 	19	 
	 
	 	 	 	 
	9.3 Safety
	 	 	19	 
	 
	 	 	 	 
	9.4 Weapons Prohibition
	 	 	19	 
	 
	 	 	 	 
	9.5 Background Checks
	 	 	19	 
	 
	 	 	 	 
	9.6
Security Adherence and Access Rights
	 	 	20	 
	 
	 	 	 	 
	9.7 Investigations
	 	 	20	 
	 
	 	 	 	 
	10.0 CONFIDENTIAL INFORMATION
	 	 	20	 
	 
	 	 	 	 
	10.1 Confidentiality
	 	 	20	 
	 
	 	 	 	 
	10.2 Information Security
	 	 	21	 

			
	 	 	 
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	*	 	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

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	10.3 No Publicity
	 	 	22	 
	 
	 	 	 	 
	10.4 Exception for Legal Process
	 	 	22	 
	 
	 	 	 	 
	10.5 Injunctive Relief
	 	 	22	 
	 
	 	 	 	 
	11.0 Ownership
	 	 	22	 
	 
	 	 	 	 
	11.1 Embarq Property
	 	 	22	 
	 
	 	 	 	 
	11.2 Developed Property 
	 	 	23	 
	 
	 	 	 	 
	11.3 No Implied License
	 	 	23	 
	 
	 	 	 	 
	12.0 Mutual Representations and Warranties
	 	 	23	 
	 
	 	 	 	 
	12.1 Formation; Authorization; Litigation
	 	 	23	 
	 
	 	 	 	 
	12.2 No Violations; Approvals
	 	 	24	 
	 
	 	 	 	 
	13.0 WARRANTY DISCLAIMERS
	 	 	24	 
	 
	 	 	 	 
	14.0 INDEMNITY
	 	 	24	 
	 
	 	 	 	 
	14.1 Supplier’s General Third Party Indemnity
	 	 	24	 
	 
	 	 	 	 
	14.2 Embarq’s General Third Party Indemnity 
	 	 	25	 
	 
	 	 	 	 
	14.3 Supplier’s Intellectual Property Indemnity
	 	 	25	 
	 
	 	 	 	 
	14.4 Embarq Indemnity
	 	 	25	 
	 
	 	 	 	 
	14.5 Indemnification Procedures
	 	 	26	 
	 
	 	 	 	 
	15.0 LIMITATION OF DAMAGES
	 	 	27	 
	 
	 	 	 	 
	16.0 INSURANCE
	 	 	27	 
	 
	 	 	 	 
	16.1 Required Insurance Coverage
	 	 	27	 
	 
	 	 	 	 
	16.2 Certificates of Insurance
	 	 	27	 
	 
	 	 	 	 
	17.0 AUDIT RIGHTS
	 	 	28	 
	 
	 	 	 	 
	17.1 Records Maintenance
	 	 	28	 
	 
	 	 	 	 
	17.2 Procedures
	 	 	28	 
	 
	 	 	 	 
	18.0 DISPUTE RESOLUTION
	 	 	28	 
	 
	 	 	 	 
	18.1 Option to Negotiate Disputes 
	 	 	28	 

			
	 	 	 
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	18.2 Continuing Performance
	 	 	29	 
	 
	 	 	 	 
	18.3 Jury Waiver; Arbitration
	 	 	29	 
	 
	 	 	 	 
	18.4 Legal Fees
	 	 	29	 
	 
	 	 	 	 
	19.0 SUPPLIER DIVERSITY
	 	 	30	 
	 
	 	 	 	 
	19.1 Embarq’s Supplier Diversity Policy
	 	 	30	 
	 
	 	 	 	 
	19.2 Registration
	 	 	30	 
	 
	 	 	 	 
	19.3 Supplier Diversity Schedule
	 	 	30	 
	 
	 	 	 	 
	20.0 GENERAL
	 	 	30	 
	 
	 	 	 	 
	20.1 Notices
	 	 	30	 
	 
	 	 	 	 
	20.2 Business Conduct Code
	 	 	31	 
	 
	 	 	 	 
	20.3 Assignment
	 	 	31	 
	 
	 	 	 	 
	20.4 Independent Contractor
	 	 	31	 
	 
	 	 	 	 
	20.5 Governing Law
	 	 	31	 
	 
	 	 	 	 
	20.6 Waiver and Severability 
	 	 	32	 
	 
	 	 	 	 
	20.7 Survival
	 	 	32	 
	 
	 	 	 	 
	20.8 Marks
	 	 	32	 
	 
	 	 	 	 
	20.9 Remedies
	 	 	32	 
	 
	 	 	 	 
	20.10 Federal Acquisition Regulations; Executive Order 11246
	 	 	32	 
	 
	 	 	 	 
	20.11 Construction
	 	 	33	 
	 
	 	 	 	 
	20.12 Entire Agreement; Modifications; Inconsistencies
	 	 	33	 

			
	 	 	 
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MASTER SERVICES AGREEMENT

This Master Services Agreement No. MSAX063015TPS (as may be amended from time to time,
the “Agreement”) dated as of November ___, 2006 (“Effective Date”) is between Embarq
Management Company, a Delaware corporation (“Embarq”), and Synacor, Inc., a Delaware
corporation (“Supplier”).

BACKGROUND

	 	A.	 	Supplier is in the business of providing Services and Deliverables to its customers.
	 
	 	B.	 	Embarq is in the business of providing telecommunications services to its
customers including voice, data, video and wireless services.
	 
	 	C.	 	Embarq and Supplier may enter into one or more Orders for Supplier to provide
Services and Deliverables to Embarq.
	 
	 	D.	 	Embarq and Supplier desire to specify the standard terms that will apply to
the Orders.

AGREEMENT

	1.0	 	DEFINITIONS
	 
	 	 	“Agreement” means this Agreement and all schedules, orders and other attachments to
this Agreement.
	 
	 	 	“Certified Diverse Supplier” is defined in subsection 19.1 (Embarq’s
Supplier Diversity Policy).
	 
	 	 	“Claim” is defined in subsection 14.5 (Indemnification Procedures).
	 
	 	 	“Confidential Information” means (a) this Agreement and the discussions,
negotiations and proposals related to this Agreement, (b) any information exchanged in
connection with this Agreement concerning the other party’s business, including without
limitation tangible, intangible, visual, electronic, written, or oral information, whether
received directly or indirectly from the other party or, in the case of Embarq, from Embarq
Customers, and (c) Embarq Data. Confidential Information does not include information that
is: (i) rightfully known to the receiving party before negotiations leading up to this
Agreement; (ii) independently developed by the receiving party without relying on the
disclosing party’s Confidential Information; (iii) part of the public domain or is lawfully
obtained by the receiving party from a third party not under an obligation of
confidentiality; or (iv) free of confidentiality restrictions by agreement of the
disclosing party.
	 
	 	 	[*]

			
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	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

MSA No.: MSAX063015TPS

	 	 	“Deliverables” means documents, technology, data, information and materials
deliverable from Supplier to Embarq and specified in an Order.
	 
	 	 	“Documentation” means all user manuals, reference guides, brochures, installation
manuals, specifications, release notes, error message manuals or other written
documentation provided to Embarq by Supplier and pertaining to the installation, use,
features or performance of the Deliverables.
	 
	 	 	“Effective Date” is defined in the Preamble.

	 
	 	 	“Indemnified Party” is defined in subsection 14.5 (Indemnification Procedures).

	 
	 	 	“Indemnifying Party” is defined in subsection 14.5 (Indemnification Procedures).
	 
	 	 	“Order” means an accepted written or electronic order from Embarq for Services or
Deliverables.
	 
	 	 	“Security Standards” means commercially reasonable security features in all
material hardware and software systems and platforms that Supplier uses to access Embarq’s
Confidential Information.
	 
	 	 	“Services” means the services Supplier provides to Embarq as specified in an Order.
	 
	 	 	“Embarq Affiliate” means (i) any entity, directly or indirectly, Controlling,
Controlled by or under common Control with Embarq or (ii) any direct or indirect wholly
owned affiliate of Embarq Corporation that is subsequently divested.
	 
	 	 	[*]
	 
	 	 	“Embarq Customer” means a user of or subscriber to one or more services or products
offered by Embarq or an Embarq Affiliate.
	 
	 	 	“Embarq Data” means all information collected or developed by (i) Embarq or an
Embarq Affiliate regarding its customers or (ii) by Supplier regarding Embarq customers
(but only in their capacity as Embarq customers), including, under each of the clauses (i)
and (ii) of this definition, location-based information, phone or other identification
numbers issued to Embarq customers, electronic serial numbers, Embarq
customers’ personalization

			
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	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

MSA No.: MSAX063015TPS

	 	 	information and automatic number identification information, and information
described in the Federal Communications Commission’s definition of “Customer Proprietary
Network Information” as set forth in 47 USC Section 222(h)(1) (as amended and
interpreted from time to time).
	 
	 	 	“Embarq Indemnitee” is defined in subsection 14.1 (Supplier’s General Third
Party Indemnity).
	 
	 	 	“Embarq-Owned Property” means all tangible and intangible items or information
that Supplier receives from Embarq or from a third party on Embarq’s behalf, or that is
paid for by Embarq, including Embarq Content (as defined in an applicable Order).
	 
	 	 	“Supplier Affiliate” means (i) any entity, directly or indirectly, Controlling,
Controlled by or under common Control with Supplier.
	 
	 	 	“Supplier Indemnitee” is defined in subsection 14.2 (Embarq’s General Third
Party Indemnity).
	 
	 	 	“Supplier Personnel” means Supplier’s employees, subcontractors or agents who
perform Services, act on Supplier’s behalf or are paid by Supplier in connection with
this Agreement.
	 
	 	 	“Transition Period” means a period of up to 6 months from the effective date of
the termination or expiration of an Order or this Agreement, during which Supplier will
provide Services pursuant to this Agreement.
	 
	2.0	 	SERVICES

	 	2.1	 	Scope of Services.
	 
	 	 	 	This Agreement sets forth the applicable terms for any Order Embarq may issue to
Supplier for Services or Deliverables. Each Order specifically incorporates the terms of
this Agreement. Supplier may provide the Services directly to Embarq, or indirectly
using contractors or other third party vendors or service providers, provided that in
any event, Supplier shall remain responsible for the delivery of the Services or
Deliverables to Embarq in accordance with this Agreement.

	 	2.2	 	No Volume Commitment
	 
	 	 	 	This Agreement does not authorize Supplier to provide or commit Embarq to order any
Services or Deliverables. Embarq’s issuance of an Order by an authorized Embarq agent is
Embarq’s agreement to pay for Services or Deliverables and Supplier’s agreement to
provide the Services or Deliverables, in each case in accordance with this Agreement and
the applicable Order.
	 
	 	2.3	 	Supplier’s Performance.

			
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	 	 	 	Supplier will perform the Services and provide Deliverables in accordance with this
Agreement and the applicable Order, including but not limited to all specified time
requirements. Embarq may inspect Supplier’s performance; however, Embarq’s inspection (or
lack of inspection) will not be an acceptance of Services or Deliverables, a waiver of any
right or warranty, or preclude Embarq from rejecting non-conforming Services or
Deliverables in accordance with any acceptance terms and criteria set forth in an
applicable Order.
	 
	 	2.4	 	Limitations.
	 
	 	 	 	Supplier will not be responsible for, nor liable hereunder in connection with, any failure
in the Services or Deliverables due to or resulting from: (a) any Embarq-Owned Property or
other content provided by or for Embarq; (b) Embarq’s negligence, acts or omissions;
(c) telecommunications or equipment failures outside of Supplier’s facilities;
or
(d) unauthorized access, breach of firewalls or other hacking by third parties of
Supplier’s systems if such hacking or unauthorized access is not a result of Supplier’s
negligence or intentional misconduct.
	 
	 	2.5	 	Acceptance of Services and Deliverables.
	 
	 	 	 	The Order will specify the manner in which Embarq will accept Services and Deliverables, if
applicable.
	 
	 	2.6	 	Changes to Services.
	 
	 	 	 	Embarq may propose changes to Services and Deliverables to be provided by Supplier under an
Order by giving Supplier a change notice. If Supplier believes the schedule or compensation
for Services must be modified to accommodate the proposed change, Supplier must provide
Embarq with a detailed written estimate of the anticipated effect on the schedule and
compensation within 7 business days after receipt of Embarq’s written change notice. If
Supplier timely submits a response, the parties will negotiate a mutually acceptable
resolution. Supplier will not unreasonably withhold, delay or condition its consent to any
change. Following the issuance of a change notice and during the pendency of any
negotiation, Supplier will continue to provide Services and Deliverables as specified in
the Order, unless otherwise directed by Embarq in writing. If Supplier fails to respond to
the change notice within 7 business days, Embarq’s proposed change shall be deemed
rejected.
	 
	 	2.7	 	Restrictions.
	 
	 	 	 	Except as specifically permitted in this Agreement, Embarq shall not, directly or
indirectly: (a) use any of Supplier’s Confidential Information to create any software that
is similar to any of the software provided by Supplier under this Agreement or to provide
any service which performs the same functionality as the Service; (b) decompile,
disassemble, reverse engineer or use any similar means to attempt to discover the source
code of the software or the trade secrets therein, or otherwise circumvent any
technological measure that controls

			
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	 	 	 	access to the software, Deliverables or Services; (c) encumber, transfer, rent,
lease, or time-share the software, Deliverables or Services (except with Embarq
Affiliates, subject to Supplier’s prior written consent), or use them in any service
bureau arrangement or otherwise for the benefit of any third party; (d) access, copy,
distribute, manufacture, adapt, create derivative works of or otherwise modify any
software or Deliverables; (e) remove any proprietary notices; or (f) permit any third
party to engage in any of the acts proscribed in clauses (a) through (e) above.

	3.0	 	EMBARQ RESPONSIBILITIES

	 	3.1	 	Embarq Support; Supplier Status.
	 
	 	 	 	Embarq acknowledges that the continuing performance of certain Services or Deliverables
may depend on its provision of cooperation, assistance, information and access to
Supplier, as specified in an applicable Order. If Embarq fails to timely provide any of
the foregoing as specified in an applicable Order, then Supplier will not be liable for
any corresponding delay in its performance. The parties’ contacts (designated in Section
20.1) are responsible for facilitating communication between Supplier and Embarq
regarding all technical and business matters.
	 
	 	3.2	 	Materials and Equipment.
	 
	 	 	 	Embarq may provide (on its own behalf, or on behalf of its sponsors or advertisers)
certain Embarq-Owned Property, including materials, domain names, Embarq Content and
other information to Supplier as reasonably needed to perform the Services. Embarq
represents and warrants that it has the right to provide all Embarq-Owned Property, and
that use of such Embarq-Owned Property hereunder will not violate Embarq’s obligations
under any other agreement, any laws or regulations. Embarq shall obtain, operate and
maintain in good working order all equipment and ancillary services needed to connect to,
access or otherwise use the Services via the Internet, including without limitation,
modems, servers, hardware, software, network and communication services
(“Equipment”). Embarq and Supplier shall jointly ensure that all Equipment is
compatible with the Services (and, to the extent applicable, any software interface) and
complies with all configurations and specifications set forth in Supplier’s published
documentation. Embarq shall maintain the integrity and security of its Equipment
(physical, electronic and otherwise), account passwords, and Embarq-Owned Materials.

	4.0	 	COMPENSATION AND INVOICING

	 	4.1	 	Compensation.
	 
	 	 	 	Supplier’s rates or prices are in Schedule A or as specified in an Order. For hourly
rate billing, Supplier will submit both itemized and summarized time records with each
invoice. Time records must be broken down in 15-minute increments by individual, task
and billing rate.

			
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	 	4.2	 	Expenses.
	 
	 	 	 	Embarq will reimburse Supplier for travel, living, and other out-of-pocket expenses if the
expenses (i) are authorized in the Order, (ii) are reasonably incurred and documented,
(iii) approved in advance by Embarq if in excess of five hundred dollars ($500), and (iv)
otherwise conform to Embarq’s travel and reimbursement policy set forth below:

	 	(a.)	 	Supplier must submit an expense report to Embarq within 60 days after an
expense is incurred. Supplier must submit, as applicable, the following in its
expense report: (i) passenger flight coupon and travel itinerary, (ii) the original
receipt for meals and parking and toll fees, in excess of $15 (tear tab receipts are
not accepted), and (iii) the original receipt for hotel accommodations, vehicle
rental costs, and fuel costs for rental vehicle usage (regardless of the amount).
	 
	 	(b.)	 	Supplier must use Embarq’s online travel reservation system to book air,
hotel and rental car reservations. If Supplier cannot gain access to Embarq’s online
travel reservation system, or for more complicated trips, Supplier must contact the
Embarq Business Travel Center by calling (800) 347-2639 during regular business
hours. All air travel must be coach or economy.
	 
	 	(c.)	 	Embarq will reimburse Supplier for use of a personal vehicle for business
purposes related to the Services, this Agreement and the Orders at the rate set forth
in the IRS regulations in effect at the time the expense is incurred. Embarq will not
reimburse Supplier for personal expenses, including, without limitation, phone calls
and meals.

	 	4.3	 	Taxes.
	 
	 	 	 	Embarq is responsible for any sales or use taxes and all other taxes duties and fees (other
than taxes assessed on Supplier’s income) assessed on its payment for Services and
Deliverables. Supplier will itemize sales or use taxes separately on Supplier’s invoices. If
Embarq is exempt from taxation for the Services or Deliverables, it will submit an exemption
certificate to Supplier.

	 	4.4	 	Invoicing, Itemization and Payment Procedures.

	 	(a.)	 	Unless otherwise provided in the Order, Supplier will invoice Embarq once per
month. Each invoice will include: (i) Supplier’s name and remit address, (ii) invoice
number, (iii) invoice date, (iv) the name of Supplier’s Embarq contact, (v) the
contract number that Embarq assigned to this Agreement, and (vi) the Embarq business
unit and cost center or the Embarq Order number. The Order may specify additional
invoicing requirements, such as the invoice format and documentation required to
support the fees and expenses.
	 
	 	(b.)	 	If Supplier is unable to submit invoices and receive payments electronically
on the Effective Date, Supplier must enroll for automated invoicing and payment no
later than 30 days after the Effective Date and, in the interim, Supplier must send
invoices to the following address:

			
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Embarq Accounts Payable

P.O. Box 7936

Shawnee Mission, Kansas 66207-0936

	 	If Supplier fails to enroll for automated invoicing and payment within 30 days after the
Effective Date, Embarq may delay payment until Supplier completes enrollment.
	 
	 	(c.)	 	Embarq will pay undisputed amounts within 45 days after receiving Supplier’s
invoice. Embarq will pay disputed amounts, if owed, within 30 days after the dispute
is resolved, provided that for all disputed amounts, Embarq will notify Supplier in
writing within 30 days after Embarq’s receipt of an invoice of any objections, if
any, it has thereon (including a description of the basis for such objection) and
Embarq will work with Supplier in good faith to reconcile amounts for which written
objection has been made.
	 
	 	(d.)	 	Supplier may only invoice Embarq for charges, amounts or fees set forth in
this Agreement or an Order.
	 
	 	(e.)	 	Embarq’s failure to pay undisputed amounts within the period set forth in
Section 4.4(c) above shall be deemed a material breach and Supplier shall have the
right to terminate the Agreement if such breach is not cured within ten (10) business
days of Embarq’s receipt of written notice.

	 	4.5	 	Offset Right.
	 
	 	 	 	In the event a party (“Owing Party”) fails to timely pay any amount owed to the other party
(“Owed Party”) under this Agreement or any Order, Owed Party may offset any such
amount against any amount owed by Owed Party or any Affiliate of Owed Party under this
Agreement or Order to Owing Party.
	 
	 	4.6	 	No Payment Upon Material Breach.
	 
	 	 	 	Embarq is not obligated to make any payment under this Agreement or an Order if Supplier
materially breaches this Agreement or an Order until Supplier has cured or Embarq has
waived the breach in accordance with this Agreement.
	 
	 	4.7	 	Prompt Invoicing.
	 
	 	 	 	Supplier must not (a) invoice Embarq more than 90 days after Supplier is permitted to issue
an invoice under this Agreement (“Late Invoices”) or (b) initially raise a claim
for payment of a previously issued invoice more than 365 days after the invoice date
(“Late Claims”). Embarq is not obligated to pay Late Invoices or Late Claims and
Supplier waives all rights and remedies related to Late Invoices and Late Claims.
	 
	 	4.8	 	Electronic Ordering.

			
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	 	 	 	Embarq and Supplier may agree to facilitate electronic ordering, through either the use
of an electronic data interchange or an Internet-based e-commerce solution.

	5.0	 	AFFILIATE TRANSACTIONS

	 	5.1	 	Embarq Affiliates’ Purchase Rights.
	 
	 	 	 	Supplier will provide Services and Deliverables under this Agreement and any existing
Orders to any Embarq Affiliate, who has agreed to be bound by the terms and conditions of
this Agreement, upon request. Supplier will negotiate with Embarq Affiliates in good
faith for Orders covering Services and Deliverables not governed by an existing Order,
consistent with this Agreement.
	 
	 	5.2	 	Contractual Liability.
	 
	 	 	 	All references to Embarq in this Agreement refer equally to Embarq or the Embarq
Affiliate executing a particular Order. Embarq shall be responsible and liable for all
Orders submitted by Embarq Affiliates.
	 
	 	5.3	 	Acquisitions and Divestitures

	 	(a.)	 	If Embarq Corporation divests a Embarq Affiliate or other portion of
its business (“Divested Business”), such Divested Business will be
entitled to continue purchasing under this Agreement for the remaining then
current Term of this Agreement (exclusive of any Renewal Term) if the Divested
Business agrees, in writing, to be bound by the terms and conditions of this
Agreement. The Divested Business will be solely responsible and liable for any
Services and Deliverables purchased by the Divested Business after the
divestiture.
	 
	 	(b.)	 	If Embarq Corporation acquires an entity or creates a new subsidiary
after the Effective Date, such entity will immediately be deemed an Embarq
Affiliate and will have the same rights and obligations (subject to Section 5.1)
as the Embarq Affiliates that are in existence on the Effective Date.

	6.0	 	TERM AND TERMINATION

	 	6.1	 	Term.
	 
	 	 	 	The initial term of this Agreement begins on the Effective Date and will continue for
three (3) years from May 1, 2007 (“Initial Term”). The term of this Agreement
will automatically renew on an annual basis for up to two additional one-year terms
(“Renewal Term”, collectively with the Initial Term, “Term”), unless
Embarq gives notice of its intent not to renew at least 90 days before the expiration of
the Term. After the first two Renewal Terms, the Term will automatically renew on an
annual basis for successive one-year terms, unless either Party gives notice of its
intent not to renew at least 90 days before the expiration of the Term. For any
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	 	 	 	continue in effect until the Order is fulfilled or terminated. This subsection is subject
to the early termination rights stated elsewhere in this Agreement.
	 
	 	6.2	 	Termination for Cause.
	 
	 	 	 	If a party materially breaches this Agreement or an Order or both, the other party may give
the breaching party a breach notice identifying the action or inaction that is the basis of
the breach. The party giving the breach notice may terminate this Agreement or the affected
Order if the other party does not cure the breach within 30 days after receiving the breach
notice. Unless otherwise provided in the breach notice or unless the breach has been cured,
the termination is effective 31 days after the breach notice is received. In addition to
any other rights or remedies that Embarq may have, if Embarq terminates under this
subsection, Supplier must reimburse Embarq for the increased costs (i.e., the costs in
excess of that which Embarq would have paid to Supplier under this Agreement) incurred by
Embarq for replacement services and deliverables, but solely to the extent such costs are
incurred during the remainder of the then current Term (exclusive of any Renewal Term).
	 
	 	6.3	 	[*]

			
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	*	 	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
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	 	6.4	 	Termination for Financial Instability.
	 
	 	 	 	If Supplier becomes Insolvent, Embarq may terminate this Agreement without liability with
at least 30 days’ notice to Supplier. “Insolvent” means: a.) Supplier does not meet
its undisputed obligations, including judgments, to third parties as those obligations
become due, (b.) Supplier’s stock is removed or delisted from a trading exchange, (c.)
Supplier’s long term debt goes on a watch or warning list, or (d.) Supplier’s long term
debt rating is downgraded more than 2 levels from its debt rating as of the Effective Date.
Supplier may terminate this Agreement effective immediately upon written notice, in the
event any assignment is made by Embarq for the benefit of creditors, or if a receiver is
appointed to take charge of Embarq’s property.
	 
	 	6.5	 	Transition Services.
	 
	 	 	 	Upon termination or expiration of an Order or this Agreement, Embarq may at its discretion
require Supplier to provide a Transition Period for Services. The required Transition
Period will not exceed 6 months, unless mutually agreed by both parties. If Embarq
initially designates a Transition Period of less than 6 months, it may subsequently extend
the Transition Period up to the maximum period of 6 months with 5 days’ notice to Supplier.
Embarq may, in its discretion, terminate the Transition Period with notice to Supplier.
During the Transition Period, the parties will continue to be bound by and perform in
accordance with this Agreement and any Orders. The terms and conditions of Effect of
Termination will apply upon termination or expiration of the Transition Period.
	 
	 	6.6	 	Effect of Termination.
	 
	 	 	 	Termination of this Agreement is without prejudice to any other right or remedy of the
parties. Termination of this Agreement for any reason does not release either party from

			
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	 	 	 	any liability which, at the time of termination, has already accrued to the other
party, or which may accrue in respect of any act or omission before termination or from
any obligation which is expressly stated to survive the termination. All obligations that
accrued prior to the effective date of termination (including without limitation, all
payment obligations) shall survive termination.
	 
	 	 	 	Upon termination or expiration of an Order or this Agreement or both, the parties will
perform the following obligations:

	 	(a.)	 	Within 15 days after the effective date of termination or expiration,
Supplier will return Embarq-Owned Property to locations designated by Embarq;
	 
	 	(b.)	 	Within 30 days after the effective date of termination or expiration,
Supplier will invoice Embarq for any final amounts due under the terminated Orders;
and
	 
	 	(c.)	 	Both parties will immediately discontinue making any statements or
taking any actions that might cause third parties to infer that a business
relationship continues to exist between the parties under the Orders or Agreement,
and where necessary or advisable, the parties will inform third parties that the
parties no longer have a business relationship.

	 	6.7	 	No Liability.
	 
	 	 	 	Each party understands that the rights of termination hereunder are absolute and that it
has no right to a continued relationship with the other after termination, except as
expressly stated herein. Neither party shall incur any liability whatsoever for any
damages, loss, or expense of any kind suffered or incurred by the other (or for any
compensation to the other) arising from or incident to any termination of this Agreement
which complies with the terms of this Agreement, whether or not such party is aware of
any such damage, loss or expense.

	7.0	 	SUPPLIER WARRANTIES

	 	7.1	 	General Services and Deliverables Warranty.

	 	(a.)	 	Supplier warrants that (i) Services will be provided in a workmanlike
manner, (ii) Supplier Personnel will have the requisite experience, skills,
knowledge, training and education to perform Services in a professional manner and
in accordance with this Agreement and Orders, (iii) all information provided by
Supplier to Embarq regarding Supplier Personnel will be truthful and accurate and
(iv) that it has all rights necessary to enter into and perform its obligations
under this Agreement and to grant the limited rights and licenses hereunder.
Notwithstanding anything to the contrary herein, Embarq acknowledges and agrees
that Services and Deliverables may be temporarily unavailable for scheduled
maintenance or for unscheduled emergency repairs, by Supplier or by third-party
providers.

			
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	 	(b.)	 	Supplier also warrants that, for a period of 1 year after Embarq’s acceptance of
Services or Deliverables, (i) Deliverables will be free from defects in design,
materials and workmanship that degrade the Services such that they are unable to
operate in accordance with any service level agreements associated with this Agreement
or with any Order, and (ii) Services and Deliverables will conform to the Order
specifications.

	 	7.2	 	Virus Warranty.
	 
	 	 	 	Supplier warrants that the Deliverables as delivered and unmodified will be free from any
viruses, worms, disabling programming codes, instructions or other such items known at the
time of delivery that may threaten, infect, damage, disable or otherwise interfere with the
permitted use of the Deliverables (“Virus”). Supplier will test each element of the
Deliverables, including any upgrades, before delivery to Embarq to ensure that it is free
of any Virus. If Embarq notifies Supplier that it has been informed or has reason to
believe that a Virus has infected a Deliverable, Supplier will promptly assist and work
continuously with Embarq, at Embarq’s direction and at no charge, until, in Embarq’s
determination, the Virus has been eliminated.
	 
	 	7.3	 	Malicious Technology.
	 
	 	 	 	Supplier warrants that the Deliverables as delivered and unmodified form will not: (i)
contain any Malicious Technology, (ii) contain any files or features that will disable or
destroy any functionality of the Deliverables, (iii) replicate, transmit or activate
itself without control of a person operating the computing equipment on which it resides;
or (iv) alter, damage or erase any data or computer programs without control of a person
operating the computing equipment on which it resides. If the Supplier is in breach of
this subsection, no “right to cure” period will apply. Embarq reserves the right to pursue
any available civil or criminal action against Supplier for violation of this provision.
Supplier will not install, use or execute any software on any Embarq CPUs without Embarq’s
written approval. “Malicious Technology” means any software, electronic,
mechanical or other means, device or function, e.g. (key, node, lock, time-out, “back
door,” trapdoor,” “booby trap,” “drop dead device,” “data
scrambling device,” “Trojan
Horse,”) that would allow Supplier or a third party to: (i) monitor or gain unauthorized
access to any Embarq system, (ii) use any electronic self-help mechanism in connection
with an Embarq system or (iii) restrict, disable, limit or impair the performance of a
Embarq system.
	 
	 	7.4	 	Compliance with Laws; Permits.
	 
	 	 	 	Supplier warrants that it will comply with all laws, orders, codes and regulations in the
performance of this Agreement and any Order. To the extent Supplier provides Supplier
Personnel to perform Services on Embarq’s premises, Supplier will screen Supplier
Personnel in conformance with all local, state and federal regulations, comply with laws,
regulations and orders relating to equal employment, workers’ compensation, unemployment
compensation, FICA, and immigration and employment verification, and furnish Embarq with
its EEO policies and verification of its FICA, workers’ compensation and unemployment
compensation if requested. Supplier will obtain and keep current at its

			
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	 	 	 	expense all governmental permits, certificates and licenses (including
professional licenses, if applicable) necessary for Supplier to perform the Services or
provide the Deliverables.
	 
	 	7.5	 	Subcontracts.
	 
	 	 	 	Supplier will remain fully liable for the work performed and for the acts or omissions
of any Supplier subcontractor. Supplier will require any subcontractor to comply with
the applicable terms of this Agreement and Orders.
	 
	 	7.6	 	Certification of Legal Status.
	 
	 	 	 	Supplier warrants it confirms the legal status of Supplier Personnel to work in the
United States. Supplier warrants that Supplier Personnel performing Services pursuant
to this Agreement are authorized to work in the United States (“Compliance with
Legal Status”). At Embarq’s request, Supplier will audit its Compliance with Legal
Status and deliver to Embarq a written certification, within 15 business days after
Embarq’s request, that Supplier Personnel working in the United States are legally
authorized to do so.
	 
	 	7.7	 	Breach of Warranty.
	 
	 	 	 	If Supplier breaches any warranty, Supplier will promptly replace nonconforming
Services or Deliverables at Supplier’s sole cost. If Supplier fails to promptly replace
nonconforming Services, Embarq may, in addition to exercising any other available
remedies, replace nonconforming Services at Supplier’s sole cost.

	8.0	 	EMBARQ WARRANTIES
	 
	 	 	Embarq represents and warrants to Supplier that it has all rights necessary to enter into
and perform this Agreement and to grant the limited rights and licenses above including,
without limitation, all necessary rights in the Embarq Data and Embarq-Owned Property
including but not limited to the Embarq Content and all rights of publicity with respect
to any artists, artwork, text material, images, sound or video, if any, associated with
the Embarq-Owned Property. Embarq further represents and warrants that to its knowledge
the Embarq Data and Embarq-Owned Property are not defamatory, obscene, or otherwise
unlawful and do not infringe or interfere with any intellectual property, contract, right
of publicity, or any other proprietary right of any individual or entity.
	 
	9.0	 	PERSONNEL

	 	9.1	 	Required Compliance with Agreement.
	 
	 	 	 	Supplier will require Supplier Personnel to comply with the applicable terms of this
Agreement and Orders.

			
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	 	9.2	 	Removal.
	 
	 	 	 	Embarq may reject or require Supplier to remove Supplier Personnel from providing
Services to Embarq for any lawful reason. Supplier must remove Supplier Personnel
promptly upon Embarq’s good faith written request. Embarq is not obligated to pay for
Services provided by the removed Supplier Personnel following Embarq’s request for
removal. Embarq is not obligated to pay for any costs associated with replacing Supplier
Personnel.
	 
	 	9.3	 	Safety.
	 
	 	 	 	Supplier must immediately notify Embarq by telephone (followed by written confirmation
within 24 hours) of any Deliverable which fails to comply with applicable safety rules or
standards of any government agency or which contains a defect which could present a
substantial risk to the health of the public or the environment.
	 
	 	9.4	 	Weapons Prohibition.
	 
	 	 	 	Supplier Personnel must not carry weapons or ammunition onto Embarq’s premises or use or
carry weapons while performing on-site Services or attending Embarq-sponsored activities.
Supplier must comply with all postings or notices located at Embarq’s premises regarding
safety, security or weapons.
	 
	 	9.5	 	Background Checks.
	 
	 	 	 	To the extent Services are performed by Supplier Personnel on Embarq’s premises, at
Embarq’s written request, and to the extent permitted by law:

	 	(a.)	 	Supplier will perform reasonable background checks on all Supplier Personnel
that perform Services on Embarq’s premises. Background checks will include: (i) criminal history, (ii) education (if degree indicated), (iii) employment history (last
3 positions or last 5 years if with same employer), (iv) references (if any of items
(i) through (iii) cannot be completed), and (v) if there is a Reasonable Suspicion (as
defined below) of drug use by a Supplier employee who provide services to Embarq,
Supplier agrees to perform drug testing at Embarq’s expense. For the purposes of this
Agreement, “Reasonable Suspicion” means a reasonable belief based on observed,
specific, objective facts where the rational inference to be drawn under the
circumstances is that the person is under the influence of drugs. As an example, and
not as a limitation, an unexplained workplace accident may be considered to provide
reasonable suspicion.
	 
	 	(b.)	 	Supplier Personnel that perform Services on Embarq’s premises will not include
anyone with a positive drug test (if such test is required under Section 9.5(a)) or
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	 	(c.)	 	Supplier must immediately remove any Supplier Personnel that perform Services
on Embarq’s premises with a felony conviction or positive drug test (if such test
is required under Section 9.5(a)) from providing Services.
	 
	 	(d.)	 	At Embarq’s written request, Supplier will audit its compliance with the
requirements of this subsection, and will, within 15 business days of Embarq’s
request, deliver a written certification to Embarq confirming that Supplier has
been and is in compliance with the requirements of this subsection.

	 	9.6	 	Security Adherence and Access Rights.

	 	(a.)	 	Supplier will adhere to all Embarq physical and data security
requirements as provided to Supplier in writing.
	 
	 	(b.)	 	Physical security access rights to Embarq premises will be designated by
Embarq in accordance with Embarq security guidelines. During performance of
Services on Embarq’s premises, Supplier will abide by all procedures and policies
applicable to Embarq premises access rights, as provided to Supplier in writing.
All Supplier Personnel must receive a security badge from Embarq before performing
any portion of Services on Embarq’s premises and will wear the badge at all times
while on Embarq’s premises.
	 
	 	(c.)	 	Upon breach of this subsection, Embarq may immediately terminate this
Agreement or Order at its sole discretion in accordance with Section 6.3.

	 	9.7	 	Investigations.
	 
	 	 	 	Supplier will refer any security breach that it knows to involve Embarq Data, Embarq
Confidential Information or Embarq Property to Embarq’s Corporate Security immediately
upon becoming aware of the incident. Supplier must make Supplier Personnel available to
Embarq Corporate Security promptly for purposes of investigating and provide
information relevant to the investigation as reasonably requested.

	10.0	 	CONFIDENTIAL INFORMATION

	 	10.1	 	Confidentiality.
	 
	 	 	 	Each party acknowledges that while performing its obligations under this Agreement it
may have access to the other party’s Confidential Information. With respect to all
Confidential Information, the parties agree as follows:

	 	(a.)	 	The receiving party may use the Confidential Information only to perform
its obligations under this Agreement. The receiving party must use the same care to
protect the disclosing party’s Confidential Information as it uses to protect its
own Confidential Information. In no event will the receiving party fail to use
reasonable care to avoid unauthorized use, including disclosure, loss, or
alteration of the disclosing party’s Confidential Information.

			
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	 	(b.)	 	Embarq may disclose Supplier’s Confidential Information to Embarq
Affiliates, agents, contractors and legal representatives, if they have a need to
know and an obligation to protect the Confidential Information that is at least as
restrictive as this Agreement. Supplier may disclose Embarq’s Confidential
Information to Supplier Personnel if they have a need to know and obligation to
protect the Confidential Information that is at least as restrictive as this
Agreement.
	 
	 	(c.)	 	Neither party will disclose to the other party any confidential information
of a third party without such third party’s consent.
	 
	 	(d.)	 	Upon cessation of work or written request, the receiving party will return or
destroy, at its option, all Confidential Information of the disclosing party. Upon
request of the disclosing party, the receiving party will furnish an officer’s
certificate certifying that the disclosing party’s Confidential Information has been
returned or destroyed.

	 	10.2	 	Information Security.

	 	(a.)	 	To protect Embarq’s Confidential Information and Data from unauthorized use,
including disclosure, loss or alteration, Supplier will: (i) meet the Security
Standards; (ii) inventory and test Security Standards before accepting Embarq’s
Confidential Information and Data; and (iii) strictly adhere to industry standard
best practices and hardening guidelines;
	 
	 	(b.)	 	Suppliers who need to access, process, use, store, or transmit sensitive
information will be subjected to review of their demonstrated capability to protect
such information. Upon Embarq’s reasonable request, Supplier will provide
information to Embarq to enable Embarq to determine compliance with subsection
10.2(a) above. As part of Embarq’s assessment of Supplier’s internal control
structure, Embarq may require Supplier to, without limitation, answer security
questionnaires or conduct scans of servers, databases and other network hardware;
	 
	 	(c.)	 	Supplier will promptly inform Embarq of any known or suspected compromises
of Embarq’s Confidential Information and Data as a result of Supplier’s failure to
comply with the Security Standards.
	 
	 	(d.)	 	On a periodic basis, but in no event more than twice in any 12-month period,
Embarq may, upon 10 days’ notice, perform a security assessment to determine
Supplier’s compliance with the Security Standards. If Embarq has a reasonable basis
to believe that Supplier has breached or is likely to breach the Security Standards,
Embarq may, upon 5 days’ notice, perform a security assessment, which assessment will
be in addition to any assessment in the ordinary course.
	 
	 	(e.)	 	At Embarq’s reasonable request, Supplier will promptly cooperate with Embarq
to develop a plan to protect Embarq’s Confidential Information and Data from failures
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	 	 	 	recovery efforts, identification of and implementation plans for alternative
data centers or other storage sites and backup capabilities.
	 
	 	(f.)	 	If Supplier fails to meet the obligations in this Section, Embarq will
notify Supplier of this failure as provided in this Agreement. Supplier will have
30 days from receiving that notice to correct the cause for the failure. If
Supplier fails to remedy any material failure within the 30-day period, Embarq has
the right to terminate this Agreement for cause.
	 
	 	(g.)	 	Supplier warrants that the Deliverables will not contain any
Unmitigated Vulnerability. “Unmitigated Vulnerability” means any
technology or configuration that, from a security perspective induces unacceptable
operational risks and, is (i) inconsistent with industry-accepted practices, (ii)
susceptible to being hacked, broken into or compromised, or (iii) referenced by
the Carnegie Mellon CERT®
Coordination Center at www.cert.org.
	 
	 	(h.)	 	Upon Embarq’s reasonable request, Supplier will provide information to
Embarq to enable Embarq to determine compliance with this Section.

	 	10.3	 	No Publicity.

Except as it relates to Embarq’s marketing of the Deliverables, Services and related matters to
its users, neither party will, without the other party’s written consent, issue any news
release, announcement, denial or confirmation of this Agreement, its value, or its terms and
conditions, or in any other manner advertise or publish this Agreement, its value, or its terms
and conditions. Nothing in this Agreement is intended to imply that Embarq will agree to any
publicity whatsoever. Each party may, in its sole discretion, withhold consent to any publicity.
Notwithstanding the foregoing, either party may provide a copy of this Agreement or otherwise
disclose its terms in connection with any financing transaction, due diligence inquiry or legal
or regulatory requirement.

	 	10.4	 	Exception for Legal Process.

The receiving party may disclose Confidential Information to the extent required by law; but the
receiving party must give the disclosing party prompt written notice of the required disclosure
and make a reasonable effort to obtain a protective order.

	 	10.5	 	Injunctive Relief.

Each party agrees that the wrongful disclosure of Confidential Information may cause irreparable
injury that is inadequately compensable in monetary damages. Accordingly, either party may seek
injunctive relief in any court of competent jurisdiction for the breach or threatened breach of
this Section in addition to any other remedies in law or equity.

	11.0	 	OWNERSHIP

	 	11.1	 	Embarq Property.

			
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	 	(a.)	 	Supplier must return all Embarq-Owned Property to Embarq upon the
termination or expiration of this Agreement and at any time upon Embarq’s request.
Supplier is responsible and must account for all Embarq-Owned Property in Supplier’s
possession, if any, and bears the risk of loss while the property is in Supplier’s
possession. Embarq-Owned Property may only be used in connection with Supplier’s
performance of its obligations under this Agreement. If Supplier acquires, purchases
or obtains any items in connection with this Agreement that are deemed Embarq-Owned
Property, Embarq may inspect any related agreements and associated records,
including, without limitation, invoices by which Supplier acquires such Embarq-Owned
Property.
	 
	 	(b.)	 	When a Supplier Personnel assignment ends for any reason, voluntary or
involuntary, Supplier will ensure all Embarq-Owned Property in Supplier Personnel
possession is returned to Embarq within 48 hours of the assignment termination,
unless such Embarq-Owned Property is promptly assigned to another Supplier
Personnel. If Embarq-Owned Property, including without limitation security badge
and keys, is not returned within 48 hours, Supplier will reimburse Embarq for the
Embarq-Owned Property at its current market value.

	 	11.2	 	Developed Property.

If Embarq requests that Supplier undertake product modifications or development of new service
functionalities, Supplier and Embarq will negotiate in good faith an applicable statement of
work concerning the terms and conditions (including costs, timeframes, Deliverables and
ownership) on which Supplier will develop and make available to Embarq and Embarq’s End Users,
the product modifications or service functionalities. If the Parties do not agree on these terms
and conditions, nothing in the preceding sentence obligates the Supplier to undertake the
product modifications or the development of new service functionalities.

	 	11.3	 	No Implied License.

Supplier acknowledges that it has no implied license to use the Embarq-Owned Property other than
for Embarq’s benefit as contemplated under this Agreement.

	12.0	 	MUTUAL REPRESENTATIONS AND WARRANTIES

	 	12.1	 	Formation; Authorization; Litigation.

Each party represents and warrants that:

	 	(a.)	 	it is validly existing and in good standing, and is qualified to do
business, in each jurisdiction where it will conduct business under this Agreement,
unless the failure to do so will not have a material adverse effect on its ability
to perform under this Agreement;

			
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	 	(b.)	 	the signing, delivery and performance of this Agreement by the party has been
properly authorized; and
	 
	 	(c.)	 	as of the Effective Date, no claims, actions or proceedings are pending
or, to the knowledge of the party, threatened against or affecting the party that
may, if adversely determined, reasonably be expected to have a material adverse
effect on the party’s ability to perform its obligations under this Agreement.

	 	12.2	 	No Violations; Approvals.

Each party represents and warrants to the other party that the execution, delivery or performance
of this Agreement:

	 	(a.)	 	will not violate any existing law, regulation, order, determination or
award of any governmental authority or arbitrator, applicable to the party;
	 
	 	(b.)	 	will not violate or cause a breach of the terms of the party’s governing
documents or of any material agreement that binds the party; and
	 
	 	(c.)	 	will not require approval or filing with any governmental authority.

	13.0	 	WARRANTY DISCLAIMERS

	 	13.1	 	EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT TO THE CONTRARY, SERVICES AND
DELIVERABLES ARE PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. SUPPLIER DOES NOT WARRANT THAT THE SERVICES
WILL MEET THE REQUIREMENTS OF EMBARQ OR THOSE OF ANY THIRD PARTY AND, IN PARTICULAR,
SUPPLIER DOES NOT WARRANT THAT THE SYSTEM WILL BE ERROR FREE OR WILL OPERATE WITHOUT
INTERRUPTION. SUPPLIER DOES NOT WARRANT OR MAKE ANY REPRESENTATION REGARDING THE ACCURACY,
ADEQUACY OR COMPLETENESS OF THE CONTENTS OF ANY CONTENT OR THE RESULTS TO BE OBTAINED FROM
THEIR USE.

	14.0	 	INDEMNITY

	 	14.1	 	Supplier’s General Third Party Indemnity.

Except for claims covered by Supplier’s Intellectual Property Indemnity, Supplier will indemnify
and defend Embarq, the Embarq Affiliates, and their respective directors, officers, agents,
employees and customers (each, a “Embarq Indemnitee”) from and against all third party
claims, damages, losses, liabilities, costs, expenses and reasonable legal fees arising out of a
claim by a third party against a Embarq Indemnitee resulting from any act or omission of Supplier
under this Agreement.

			
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	 	14.2	 	Embarq’s General Third Party Indemnity.

Embarq will indemnify and defend Supplier, its affiliates, and their respective directors,
officers, affiliates, suppliers agents and employees (each, a “Supplier Indemnitee”) from
and against all third party claims, damages losses, liabilities, costs, expenses and reasonable
legal fees arising out of a claim by a third party against a Supplier Indemnitee resulting from any
act or omission of Embarq under this Agreement.

	 	14.3	 	Supplier’s Intellectual Property Indemnity.

Supplier will indemnify and defend the Embarq Indemnitees from and against all third party claims,
damages, losses, liabilities, costs, expenses and reasonable legal fees arising out of any third
party claim that the Services or Deliverables and any resulting use or sale of any Services or
Deliverables constitutes an infringement of any third party patent, trademark, or copyright, or the
misappropriation of any trade secret. In addition, if Embarq’s right to sell or use the Services or
Deliverables is enjoined, Supplier will, at Supplier’s expense, in the following order as is
commercially reasonable:

	 	(a.)	 	procure for Embarq and its customers the right to use the Services and
Deliverables;
	 
	 	(b.)	 	replace the Services and Deliverables with equivalent non-infringing Services
and Deliverables;
	 
	 	(c.)	 	modify the Services and Deliverables so they become non-infringing; or
	 
	 	(d.)	 	remove the Services and Deliverables and refund the price paid by Embarq for
the Services and Deliverables, including incidental charges, such as transportation,
installation and removal.

Supplier shall have no liability or obligation to Embarq hereunder with respect to any claim based
upon (i) any use of the Deliverables not materially in accordance with this Agreement to the
extent that compliance with this Agreement would have prevented the claim, (ii) use of any
Deliverables in an application or environment or on a platform or with devices for which it was
not designed or contemplated, (iii) alterations, combinations or enhancements of the Deliverables
not created or approved by Supplier, (iv) that portion of any Deliverables which implements
requirements specified in writing by Embarq, or (v) Embarq’s continuing allegedly infringing
activity after being notified thereof or its continuing use of any version of the Deliverables
after being provided modifications that would have avoided the alleged infringement.

This Section 14.3 sets forth Supplier’s sole obligation and Embarq’s sole remedy against Supplier
for any intellectual property infringement action.

	 	14.4	 	Embarq Indemnity

Embarq will defend Supplier against any third party claim that (a) the specifications provided by
Embarq to Supplier or any Embarq-Owned Property or Embarq Data violate such third party’s patent,
trademark, or copyright, or misappropriate of any trade secret; (b) is excluded from

			
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Supplier’s indemnity under Section 14.3; or (c) arises out of any claims or representations
regarding the Services or Deliverables that exceed the warranties and claims approved in writing by
Supplier. Except as otherwise provided herein, Embarq expressly disclaims all other
representations, liabilities and warranties (express or implied) related to any materials provided
by Embarq to Supplier. If, at any time during the process of software development, either party
learns that compliance with Embarq-provided specifications may result in a claim of infringement by
a third party, the party with that knowledge will promptly inform the other party. If the parties
determine that compliance with the specifications poses a substantial risk of a third party
infringement claim, Supplier will discontinue developing the software according to those
specifications and the parties will mutually agree on new non-infringing specifications. This
Section sets forth Embarq’s sole obligation and Supplier’s sole remedy against Embarq for any
intellectual property infringement action.

	 	14.5	 	Indemnification Procedures.

	 	(a.)	 	Promptly upon becoming aware of any matter which is subject to the provisions
of 14.1 (Supplier’s General Third Party Indemnity), 14.2 (Embarq’s General Third Party
Indemnity), 14.3 (Supplier’s Intellectual Property Indemnity), or 14.4 (Embarq
Indemnity) (a “Claim”), the party seeking indemnification (the “Indemnified
Party”) must give notice of the Claim to the other party (the “Indemnifying
Party”), accompanied by a copy of any written documentation regarding the Claim
received by the Indemnified Party.
	 
	 	(b.)	 	The Indemnifying Party will, at its option, settle or defend, at its own
expense and with its own counsel, the Claim. The Indemnified Party will have the
right, at its option, to participate in the settlement or defense of the Claim, with
its own counsel and at its own expense; but the Indemnifying Party will have the right
to control the settlement or defense. The Indemnifying Party will not enter into any
settlement that imposes any liability or obligation on the Indemnified Party without
the Indemnified Party’s prior written consent, not to be unreasonably withheld or
delayed. The parties will cooperate in the settlement or defense and give each other
full access to all relevant information.
	 
	 	(c.)	 	If the Indemnifying Party fails to (i) notify the Indemnified Party of the
Indemnifying Party’s intent to take any action within 30 days after receipt of a
notice of a Claim or (ii) proceed in good faith with the prompt resolution of the
Claim, the Indemnified Party, with prior written notice to the Indemnifying Party and
without waiving any rights to indemnification, including reimbursement of reasonable
legal fees and legal costs, may defend or settle the Claim without the prior written
consent of the Indemnifying Party. The Indemnifying Party will reimburse the
Indemnified Party on demand for all Damages incurred by the Indemnified Party in
defending or settling the Claim.
	 
	 	(d.)	 	Neither party is obligated to indemnify and defend the other with respect to a
Claim (or portions of a Claim) if the Indemnified Party fails to promptly notify the
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	 	 	 	information to defend or settle the Claim; and if, and only to the extent
that, the failure materially prejudices the Indemnifying Party’s ability to
satisfactorily defend or settle the Claim.

	15.0	 	LIMITATION OF DAMAGES
	 
	 	 	Neither party will be liable to the other for consequential, indirect, reliance, exemplary,
special, incidental or punitive damages for any cause of action, whether in contract, tort or
otherwise, except:

	 	(a.)	 	Damages for which a party has an obligation of indemnity under
this Agreement;
	 
	 	(b.)	 	any grossly negligent, willful or fraudulent act or omission; or
	 
	 	(c.)	 	any breach of provisions related to confidential information or the Embarq
Marks.

	 	 	Consequential damages include, but are not limited to, lost profits, lost revenues and lost
business opportunities, whether the other party was or should have been aware of the possibility
of these damages.
	 
	 	 	The Parties agree that for any damages claim, except those covered by the Parties’
indemnification obligations under Section 14 and its subsections above, each party’s
total liability will be limited to [*].

	16.0	 	INSURANCE

	 	16.1	 	Required Insurance Coverage.

Supplier will obtain and maintain during the Term the following minimum insurance coverage:

	 	(a)	 	Commercial general liability, including bodily injury, property damage,
personal and advertising injury liability, and contractual liability covering
operations, independent contractor and products/completed operations hazards, with
limits of not less than [*] combined single limit per occurrence and
[*] annual aggregate, naming Embarq as an additional insured;
	 
	 	(b)	 	Workers’ compensation as provided for under any workers’ compensation or
similar law in the jurisdiction where work is performed with an employer’s
liability limit of not less than [*] for bodily injury by accident and [*]
for bodily injury by disease;
	 
	 	(c)	 	Umbrella/excess liability with limits of not less than [*]
combined single limit per occurrence and annual aggregate in excess of the
commercial general liability, business auto liability and employer’s liability,
naming Embarq as an additional insured.

	 	16.2	 	Certificates of Insurance.

			
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Supplier will obtain and maintain the required coverage with financially reputable insurers
licensed to do business in all jurisdictions where work is performed under this Agreement. Upon
Embarq’s request, Supplier will provide Embarq a certificate of insurance evidencing that all the
required coverages are in force and have been endorsed to provide that no policy will be canceled
without first giving Embarq 30 days’ prior written notice. All policies will be primary to any
insurance or self insurance Embarq may maintain for acts or omissions of Supplier or anyone for
whom Supplier is responsible. Upon request, Supplier will include copies of relevant endorsements
or policy provisions with the required certificate of insurance.

	17.0	 	AUDIT RIGHTS

	 	17.1	 	Records Maintenance.

Each party will maintain complete auditable records of all financial and non-financial
transactions relating to this Agreement for a period of at least 3 years after the termination or
expiration of this Agreement. Each party (the “Audited Party”), will provide access to
the other party (the “Auditing Party”), its internal and external auditors, inspectors
and regulators, not more than once per calendar year during regular business hours, to sites
where either Audited Party or any of its subcontractors are providing Services, to personnel, and
to data, books, accounts and records relating to this Agreement for any reasonable business
purpose, including audits, examinations and inspections relating to (a.) the accuracy of charges
and invoices, (b.) Audited Party’s compliance with applicable laws or regulations, (c.) Audited
Party’s compliance with the terms of this Agreement, (d.) Audited Party’s compliance with safety
and security procedures with respect to its facilities, if any, and Embarq Data, and (e.) the
conduct of Audited Party’s operations and procedures. Such audit shall not unreasonably disrupt
business operations of the Audited Party.

	 	17.2	 	Procedures.

Each party will provide Audited Party with at least 30 days’ notice of an audit. Audited Party
will make the information reasonably required to conduct the audit available on a timely basis
and assist Auditing Party and its internal or external auditors as reasonably necessary. Audited
Party will not be responsible for Auditing Party’s expenses incurred for an audit unless the
audit discloses an over-billing (with respect to Supplier) or an under-payment (with respect to
Embarq) in excess of 5% during the period covered by the audit, in which case Audited Party will
pay for the entire cost of the audit, except in the circumstances of an Supplier audit of Embarq
and any underpayment is the result of Supplier’s invoicing error, in which case the Supplier will
pay for the audit. To the extent such examination discloses an over-billing or underpayment,
Audited Party will reimburse the Auditing Party for such discrepancy. Such amount shall be
reconciled with the next invoice.

	18.0	 	DISPUTE RESOLUTION

	 	18.1	 	Option to Negotiate Disputes.

The parties may, but are not obligated to, resolve any issue, dispute, or controversy arising out
of or relating to this Agreement using the procedures in this Section. Any party may give the
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notice of any dispute not resolved in the normal course of business. Within 10 days after delivery
of the notice, representatives of both parties may meet at a mutually acceptable time and place,
and thereafter as often as they reasonably deem necessary, to exchange relevant information and to
attempt to resolve the dispute by the respective representatives of both parties within the time
frames and escalation process set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	Embarq (Name/Title)	 	 	Supplier (Name/Title)	 
	Within 10 days
	 	 	 	 	 	 	 	 
	Within 20 days
	 	 	 	 	 	 	 	 
	Within 30 days
	 	 	 	 	 	 	 	 

If either party intends to have an attorney attend a meeting, it will notify the other party at
least 2 business days before to the meeting to enable the other party to also be accompanied by
an attorney. All negotiations pursuant to this Section are confidential and will be treated as
compromise and settlement negotiations for purposes of evidentiary rules.

	 	18.2	 	Continuing Performance.

Supplier will continue performance during the pendency of any dispute, unless either party
terminates this Agreement for cause.

	 	18.3	 	Jury Waiver; Arbitration.

EACH PARTY WAIVES ITS RIGHT TO A JURY TRIAL IN ANY COURT ACTION ARISING AMONG THE PARTIES UNDER
THIS AGREEMENT OR OTHERWISE RELATED TO THIS AGREEMENT, WHETHER MADE BY CLAIM, COUNTERCLAIM, THIRD
PARTY CLAIM OR OTHERWISE.

If the jury waiver is held to be unenforceable, the parties agree to binding arbitration for any
dispute arising out of this Agreement or any claim arising under any federal, state or local
statutes, laws, or regulations. The arbitration will be conducted by and in accordance with the
arbitration rules promulgated under the Judicial Arbitration and Medication Services
(“JAMS”). To the extent that the provisions of this Agreement and the prevailing rules of
JAMS conflict, the provisions of this Agreement will govern. The arbitration decision will be final
and binding on the parties, and the decision may be enforced by either party in any court of
competent jurisdiction.

The agreement of each party to waive its right to a jury trial will be binding on its successors,
assignees and Divested Affiliates.

	 	18.4	 	Legal Fees.

			
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The prevailing party in any arbitration or lawsuit will be entitled to reasonable legal
fees and costs, including reasonable expert fees and costs.

	19.0	 	SUPPLIER DIVERSITY

	 	19.1	 	Embarq’s Supplier Diversity Policy.

Embarq’s supplier diversity policy requires that Certified Diverse Suppliers will have the
maximum practicable opportunity to participate in providing Deliverables and Services to the
fullest extent consistent with efficient performance of this Agreement. “Certified Diverse
Supplier” means a supplier that has been certified by a qualified independent third party
agency as a “service-disabled veteran-owned small business concern,” a “HUBZone small business
concern,” a “small disadvantaged business concern,” a “women-owned small business concern” or a
small business concern that is controlled by one or more “socially and economically
disadvantaged individuals,” as those terms are used in 48 C.F.R. 2.101 or 13 C.F.R. 124.1003.

	 	19.2	 	Registration.

Before the Effective Date, Supplier must register at the following Embarq website:
www.Embarq.com\supplierregistration. A list of agencies that Embarq deems to be
qualified independent third party agencies for certification purposes can be found at this
website.

	 	19.3	 	Supplier Diversity Schedule.

If Supplier expects to receive [*] or more from Embarq under this Agreement, Supplier agrees
to make commercially reasonable efforts to comply with the terms and conditions of Schedule B.
Embarq may issue a notice of material breach to Supplier if Supplier intentionally and knowingly
fails to make a commercially reasonable good faith effort to meet its diversity requirement set
forth in this Section 19.3 or Schedule B.

	20.0	 	GENERAL

	 	20.1	 	Notices.

Notices provided under this Agreement must be in writing and delivered by (i) certified mail,
return receipt requested, (ii) hand delivered, (iii) facsimile with receipt of a “Transmission
OK” acknowledgment, (iv) e-mail, or (v) delivery by a reputable overnight carrier service (in the
case of delivery by facsimile or e-mail the notice must be followed by a copy of the notice being
delivered by a means provided in (i), (ii) or (v)). The notice will be deemed given on the day
the notice is received. In the case of notice by facsimile or e-mail, the notice is deemed
received at the local time of the receiving machine, and if not received, then the date the
follow-up copy is received. Notices must be delivered to the following addresses or at such other
addresses as may be later designated by notice:

			
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	Embarq:	 	Supplier:
	Embarq ________________________________

	 	Synacor, Inc.
	 ______________________________________

	 	Attn: Frank Codella
	Fax: ___________________________________

	 	40 La Riviere Drive, Suite 300
	 

	 	Buffalo, NY 14202
	 

	 	Fax: 716-332-0081
	 
	 	 
	With a copy to:

	 	With a copy to:
	Embarq Law Department

	 	Synacor, Inc.
	Director, Procurement Law Group

	 	Attn: Chief Financial Officer
	5454 W. 110th St.

	 	40 La Riviere Drive, Suite 300
	Overland Park, KS 66251

	 	Buffalo, NY 14202
	 

	 	Fax: 716-332-0081

	 	20.2	 	Business Conduct Code.

Supplier agrees to conduct business with Embarq in an ethical manner that is consistent with The
Embarq Principles of Business Conduct for Consultants, Contractors, and Suppliers, which Supplier
acknowledges has been provided to Supplier as a reference.

	 	20.3	 	Assignment.

Neither party may assign its rights or delegate its obligations under this Agreement in whole or in
part without the other party’s prior written consent, except that either party (without consent)
may assign its rights and obligations hereunder to any of its affiliates or to any successor to all
or substantially all of its business that concerns the subject matter of this Agreement (whether by
sale of equity or assets, merger, consolidation or otherwise). This Agreement is binding on and
enforceable by each party’s permitted successors and assignees. Any assignment in violation of this
Section is null and void.

	 	20.4	 	Independent Contractor.

Supplier and Supplier Personnel are independent contractors for all purposes and at all times.
Supplier has the responsibility for, and control over, the methods and details of performing
Services. Supplier will be responsible for the compensation, discipline and termination of Supplier
Personnel. Supplier is responsible for the payment of all Supplier Personnel Compensation. Neither
Supplier nor Supplier Personnel have any authority to act on behalf of, or to bind Embarq to any
obligation. “Supplier Personnel Compensation” means wages, salaries, fringe benefits and
other compensation, including contributions to any employee benefit, medical or savings plan and
all payroll taxes and unemployment compensation benefits, including withholding obligations.

	 	20.5	 	Governing Law.

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES ARE GOVERNED BY THE LAWS OF THE STATE
OF DELAWARE, WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES. EVEN IF DELAWARE ADOPTS THE UNIFORM
COMPUTER INFORMATION TRANSACTION ACT (UCITA), UCITA WILL NOT GOVERN OR BE USED TO INTERPRET
AGREEMENT PROVISIONS. FURTHER, THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE

			
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INTERNATIONAL SALE OF GOODS (UNCISCG) DOES NOT APPLY TO THIS AGREEMENT.

	 	20.6	 	Waiver and Severability.

The waiver of a breach of any term or condition of this Agreement will not constitute the waiver of
any other breach of the same or any other term. To be enforceable, a waiver must be in writing
signed by a duly authorized representative of the waiving party. If any provision of this Agreement
is held to be unenforceable, the remaining provisions will remain in effect and the parties will
negotiate in good faith a substantively comparable enforceable provision to replace the
unenforceable provision.

	 	20.7	 	Survival.

The following sections will survive expiration or termination of this Agreement for any reason:
Compensation, Invoicing, Contractual Liability, Effect of Termination, Warranty Disclaimer, Service
and Deliverable Warranties (only for the period stated therein), Confidential Information,
Ownership, Indemnity, Limitation of Damages, Audit Rights, Dispute Resolution, Governing Law, and
Marks.

	 	20.8	 	Marks.

Except as otherwise provided in an Order, nothing in this Agreement grants either party the right
to use any trademarks, trade names or logos proprietary to the other party. If either party is
granted a right to use such marks, such party will do so only in strict compliance with such Order.

	 	20.9	 	Remedies.

All rights and remedies of the parties, under this Agreement, in law or at equity, are cumulative
and may be exercised concurrently or separately. The exercise of one remedy will not be an
election of that remedy to the exclusion of other remedies.

	 	20.10	 	Federal Acquisition Regulations; Executive Order 11246.

	 	(a.)	 	If Embarq or the Federal government determines that an Order supports
specific requirements included in a contract or subcontract between Embarq and the
federal government, Supplier will be subject to certain federal acquisition
regulations, such as requirements related to equal opportunity and affirmative action
for Vietnam era veterans, and Executive Order 11246. Supplier will comply with the
applicable laws as soon as it receives notice from Embarq or otherwise learns of its
obligations under the applicable laws. Supplier will be subject only to those laws
that must be included in all subcontracts as a matter of law.
	 
	 	(b.)	 	In accordance with the Department of Justice (DOJ) Information Technology (IT)
security policies set forth in DOJ Order 2640.2D dated July 12, 2001, Supplier will
ensure that no foreign nationals perform any Services under this Agreement or a
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management
or maintenance of DOJ IT systems. DOJ IT systems include, without
limitation, information technology systems, hardware, software and media that
store, process or transmit classified and unclassified information as well as
operating systems of Federal agencies that interface with the DOJ IT systems. A
foreign national is anyone who is not a U.S. citizen and includes lawful permanent
resident aliens. Embarq will notify Supplier in writing of Supplier’s obligations
and the Order to which the law applies.

	 	20.11	 	Construction.

This Agreement will not be construed against either party due to authorship. Except for the
indemnification rights and obligations in this Agreement, nothing in this Agreement gives anyone,
other than the parties and any permitted assignees, any rights or remedies under this Agreement.

	 	20.12	 	Entire Agreement; Modifications; Inconsistencies.

This Agreement and any attachments constitute the entire agreement of the parties as to the subject
matter of this Agreement and the Orders, and supersede all prior or contemporaneous agreements,
proposals, discussions or correspondence, whether written or oral. This Agreement and any
attachment or Order may not be amended or modified except in writing signed by an authorized
representative of each party. Any terms on Supplier’s web site, product schedule or other ordering
document, or contained in any “shrinkwrap” or “clickwrap” agreement, will not have force or effect
if the provision conflicts with the terms of this Agreement, the attachments or Orders. If an
inconsistency exists between the terms of this Agreement, and the terms of any attachment or Order,
the terms of the attachment or Order will control, except preprinted terms and conditions appearing
in any purchase order will have no force and effect. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument. Execution of a facsimile copy shall have the same force and
effect as execution of an original, and a facsimile signature shall be deemed an original and valid
signature.

(Remainder of page is blank. Signature on following page.)

			
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	SIGNED:
	 	 	 	 	 	 	 	 
	 
	EMBARQ MANAGEMENT COMPANY	 	 	 	SYNACOR, INC.
	 
	/s/ David Platt	 	 	 	/s/ Frank J. Codella 
	(signature)	 	 	 	(signature)
	Print name:
	 	David Platt
	 	 	 	Print name:
	 	Frank J. Codella
	Title:

	 	VP — Procurement
	 	 	 	Title:
	 	Vice President of Sales
	Date:

	 	12/4/06
	 	 	 	Date:
	 	11/27/06

			
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SCHEDULE A

During the Initial Term, services performed by Supplier for Embarq that are not specified in an
Order shall be billed at a rate not to exceed [*] (“Billable Rate”). Supplier may
increase the Billable Rate for any Renewal Term by no more than [*] upon mutual agreement of the
Parties.

			
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SCHEDULE B

SUPPLIER DIVERSITY

Supplier will use commercially reasonable good faith efforts to meet a Utilization Requirement of
3%, either annually, or if this Agreement is for a specific term, over the term of this Agreement.
The “Utilization Requirement” will consist of socially and economically disadvantaged small
business concerns, women small business concerns, and service-disabled veteran-owned small business
concerns. Embarq reserves the right to review this requirement and monitor the supplier’s progress
annually. Embarq may assist Supplier in tracking and preparing reports with respect to the
Utilization Requirement.

For the sake of clarity, commercially reasonable good faith efforts does not include any
requirement that Supplier hire any consultant or employee to supervise and/or manage the foregoing
efforts, produce any reporting without specific request from Embarq, or require more than a
commercially reasonable amount of time for report preparation when specifically requested by Embarq
no more than twice per calendar year during the term.

			
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[*]

			
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EXHIBIT 10.15.2

CONFIDENTIAL
TREATMENT REQUESTED

CONTRACT ORDER

TO

MASTER SERVICES AGREEMENT

BETWEEN

EMBARQ MANAGEMENT COMPANY

AND

SYNACOR

This CONTRACT ORDER No. COXX063016TPS to Master Services Agreement No. MSAX063015TPS (the
“Agreement”) is between Embarq Management Company (“Embarq”) and Synacor, Inc., a Delaware
corporation (“Synacor”). Unless otherwise provided, all terms of this Contract Order are in
accordance with the terms of the Agreement.

The parties agree as follows:

	1.	 	DEFINITIONS

For the purposes of this Contract Order the following definitions apply. Where a definition
contained in this Contract Order conflicts with a definition contained in the Agreement, the
definition contained in this Contract Order shall govern and control and shall apply solely
to this Contract Order. Any term defined in the Agreement and used in this Contract Order
will have the same definition as assigned to it in the Agreement.

	 	1.1.	 	“C.O. Term”. The term of this Contract Order shall be the Term, as defined in the
Agreement.
	 
	 	1.2.	 	“Back-end Interfaces.” All Synacor provided Application Program Interfaces (API).
	 
	 	1.3.	 	“Embarq Data Services.” Embarq offered services consisting of consumer or
business data products, and any products and/or services derived therefrom or based
thereon, including wireline or wireless services and any data services Embarq offers in
the future.
	 
	 	1.4.	 	“Embarq Logo.” The Embarq logos and brands used to market the Embarq Portal(s).
	 
	 	1.5.	 	“Embarq Portal(s)”. Embarq branded portal services delivered to Embarq
customers including but not limited to: email, security, personal start page, and other
associated products and services. This includes both business and consumer portals and
other portals as requested by Embarq.
	 
	 	1.6.	 	“Portelus”. The suite of administration tools provided by Synacor for Embarq to
manage the Embarq Portal(s).
	 
	 	1.7.	 	“Premium Content Bundles”. A grouping of subscription and fee-based content
and/or application services requiring a username and password to access from the

1

 

Embarq Portal(s) which may be sold “a la carte” or embedded into an Embarq Data
Subscription Account.

	 	1.8.	 	“Synacor Services”. The set of software products, services, and applications
and related content, exclusive of network level connectivity, which are included together
or bundled and offered by Synacor to its customers from time-to-time
during the C.O. Term.
The Synacor Services will be provided to Embarq customers together with Embarq Network
Services, defined later, to permit those customers to access and experience the public
Internet.
	 
	 	1.9.	 	“Synacor Tools”. Synacor provided content publishing and administrative
applications, Interfaces and Application Program Interfaces (API).
	 
	 	1.10.	 	“Users”. All Embarq Data Subscribers and all others who are authorized by
Embarq to have an Embarq email account.
	 
	 	1.11.	 	“Value Added Services.” Services which are sold or delivered primarily over
the Internet, via any channel. For the purposes of this Agreement, “Value Added Services”
include, but are not limited to, content, video on demand, online storage, and enhanced
security.
	 
	 	1.12.	 	“Embarq Data Subscriber”. Any residential or business customer with a
monthly subscription to Embarq digital subscriber line (DSL) services.
	 
	 	1.13.	 	“Commercial Launch Date.” Means the first date on which the Services are
generally made available to Users.
	 
	 	1.14.	 	“Embarq Wireless Customers.” Means any residential or business customer
with a subscription to Embarq wireless services.
	 
	 	1.15.	 	“Territory.” Means the geographic area in the continental United States
where an Embarq Affiliate provides wireline local exchange telephone service.

	2.	 	SYNACOR OBLIGATIONS

	 	2.1.	 	Systems Development and Implementation.

	 	2.1.1.	 	Portal deliverables consist of the following product elements;

	 	2.1.1.1.	 	Embarq Portal(s) with elements of Synacor’s standard portal template branded
with Embarq presentation layer (look and feel, color, logos, trademarks, etc.).
	 
	 	2.1.1.2.	 	Initial content to be integrated into the Embarq Portal(s) as provided in
Exhibit 1, attached.
	 
	 	2.1.1.3.	 	Synacor agrees, during the Term, to integrate Embarq’s online services into
the Embarq Portal(s) [*]. Examples of applicable Embarq
Services are the following:

	 	2.1.1.3.1.	 	Account Management or Bill Pay
	 
	 	2.1.1.3.2.	 	Embarq eCommerce site (www.Embarq.com)

 

	 	 
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	 	2.1.1.3.3.	 	Embarq Business Resource Center site
(www.Embarq.com/brc)
	 
	 	2.1.1.3.4.	 	Portal Products
	 
	 	•	 	Embarq Personal Media Link (remote media streaming product)
	 
	 	•	 	Embarq Video Clicks (video-on-demand product)
	 
	 	•	 	Embarq Media Safe (remote storage product)
	 
	 	•	 	Embarq VOIP web interface
	 
	 	•	 	Embarq voice mail web interface
	 
	 	•	 	Motive Self-Registration (link to self-registration)
	 
	 	•	 	Biz Pak

	 	2.1.1.4.	 	Content publishing and Administration Components;
	 
	 	2.1.1.5.	 	Personalization functionality of Embarq Portal(s) for establishment of User
preferences by Embarq Customers;
	 
	 	2.1.1.6.	 	Application Programming Interfaces (“APIs”) for unified registration, login and
update associated with mutually agreed portal components. Embarq will work in good faith
to conform to Synacor’s current API structure (including registration, new account
activations, updates, product changes, and service cancellations). Synacor will work in
good faith to perform [*], any reasonable and limited
enhancements or modifications to the standard Synacor API structure as necessary in
order to assist Embarq to fit its operations support system;
	 
	                                                       
	 	2.1.1.7.	 	[*]
	                                                        
	 
	 	2.1.1.8.	 	Multiple unique portal accounts will be supported per each Embarq Data Subscriber,
provided that the number of permitted unique portal accounts
per Embarq Data Subscriber shall not exceed the number of email accounts offered
per Embarq Data Subscriber; and
	 
	 	2.1.1.9.	 	Embarq Portal(s) content shall be available to visitors without requiring the
visitor to register or log-in prior to accessing this content, with the exception of
Premium Products, Internet Security Services, E-mail and any content that is required by
the content provider to be placed behind login.

	 	2.1.2.	 	Portal Deliverables. The Embarq Portal(s) deliverable shall be Synacor’s standard
portal product with the elements specified in subsection (a) above, together, with User
Authentication (the “Portal Deliverable”), customized with Embarq’s color scheme, logo,
design elements and “look and feel” elements as determined by the joint Embarq/Synacor
development team (the “Appearance Requirements”), which shall be delivered according to a
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timeframe based on the level of functionality desired by Embarq. The Embarq Portal(s)
will provide the functionality described in the Synacor Specifications. If Embarq desires
additional appearance or functionality for the Embarq Portal(s) from Synacor, the parties
will, upon Embarq’s request, negotiate in good faith with respect to additional
deliverables and the cost to Embarq for such additional deliverables.

	 	2.2.	 	Portal Administration.

	 	2.2.1	 	Portelus will allow Embarq to manage via a web interface;

	 	2.2.1.1.	 	User access and subscriptions; and
	 
	 	2.2.1.2.	 	Content areas on the portal pages.

	 	2.2.2.	 	Portal templates display the premium services and Embarq-specified content in unique
information ‘panels’. Each panel accepts a content feed, such as weather, daily financial
market information, interactive surveys, and other basic content types. These panels can
be configured to provide default information on the portal home page, and configured to
individual User preferences or subscription settings.
	 
	 	2.2.3.	 	Custom provisioning tools allow administrators to create new User accounts, and add
premium content subscriptions to individual accounts. Customer Service Representatives
(“CSR”) can be assigned simple administrative privileges to see if an account is active
and to create a new account, update existing accounts, and delete accounts or premium
services.
	 
	 	2.2.4.	 	Hierarchical permissions make sure that only the Embarq account owner has “parent”
administration control over the entire Portelus implementation. Embarq privileges
include:

	 	2.2.4.1.	 	Login to administration
	 
	 	2.2.4.2.	 	View statistics
	 
	 	2.2.4.3.	 	Add Users
	 
	 	2.2.4.4.	 	View/Administer Users
	 
	 	2.2.4.5.	 	View User passwords
	 
	 	2.2.4.6.	 	Manage HTML content areas

	 	2.3.	 	Unified Registration and Login

	 	2.3.1.	 	Portelus unified registration and unified login enables Embarq to seamlessly integrate
its User profile management Web applications.
	 
	 	2.3.2.	 	Unified Registration. Portelus unified registration allows Embarq to use their
existing tools for provisioning User accounts, while at the same time establishing an
account in the Portelus database. Such software calls Portelus APIs when customer service
representatives sign up new subscriber accounts for Internet services.
	 
	 	2.3.3.	 	Execution. The unified registration process begins when a User is created using
Embarq’s User provisioning tool. That process contacts Synacor’s API, which responds with
a success or failure message. On success, the User will exist in the Portelus database.
In the event of a failure, the CSR should resolve the issue in Embarq’s provisioning
tool; if not, Synacor support should be contacted for manual field entry or data
resolution.

4

 

	 	2.3.4.	 	The Portelus Registration API uses [*]. This provides programmatic and security flexibility to the
function.

	 	2.4.	 	Unified Login. Unified login allows authenticated Users to gain access to the Embarq
Portal(s) and e-mail accounts and other integrated applications with one login. Synacor will
work with Embarq to implement single sign-on with most Web products. An initial list of
integrated applications is set forth on Exhibit 2, which may be amended from time to time.
	 
	 	2.5.	 	Portal Implementation for Embarq. Implementation of the Embarq Portal(s) consists
of:

	 	2.5.1.	 	Synacor creates the portal site template
	 
	 	2.5.2.	 	Synacor hosts system back-office infrastructure, premium service, User
preference-session management information in its data center

	 	2.6.	 	Product Roadmaps. Synacor shall share its product roadmap with respect to the
Synacor Services that Synacor may provide as part of the Embarq Portal(s) over the Embarq
Network with Embarq on a bi-annual basis to obtain feedback and comments. Synacor agrees to
provide a reasonable notice (a minimum of 60 days) of product and/or service change and/or
launches that will impact the Embarq Portal(s). Similarly, Embarq agrees to share its product
roadmap on a bi-annual basis, and provide reasonable notice (a minimum of 60 days) of product
and/or service change and/or launches that will impact the Embarq Portal(s). Any development
necessary for the continuation of services belong to Synacor.
	 
	                                                       
	 	2.7.	 	Business Portal. Synacor shall create a Business Portal to be offered by Embarq to
all its Business Embarq Data Subscribers. Users of the Business Portal will have the same
content available to them as will be available to Consumer Portal Users. Synacor will create
a default Business Portal configuration, i.e., the content elements and configuration the
User is presented prior to personalizing the portal, that contains [*] News, Local
News, Financial content, Search, Weather, Maps and Directories as well as access to email and
cross marketing messages, all determined, created and controlled by Embarq. Synacor and
Embarq agree to work cooperatively and collaborate to acquire content that will provide value
to and will be of interest to Businesses. All other available content will require the User
to employ the standard personalization. Embarq reserves the right to leverage another portal
provider, should it deem necessary to accommodate the needs of the business customers.
	                                                        
	 
	 	2.8.	 	Premium Products. Synacor shall collaborate with Embarq to design premium content
bundles that address consumer and business interests and meet Embarq’s marketing and
budgetary objectives (“Premium Products”). Synacor agrees that Premium Products can be
marketed as a la carte consumer offerings and/or as product bundles that can be configured
and selectively embedded in various tiered offerings. Examples of Premium Bundles available
to Embarq for distribution to Users are attached hereto as Exhibit 3. Synacor’s offering of
Premium Products will be subject to the terms and conditions set forth in Exhibit 4.
	 
	 	2.9.	 	Third Party Content Providers. Embarq reserves the right to work directly with any
third party application or content provider for the purposes of procuring and delivering
programming, products, and services that meet Embarq customer needs for use with both
wireline and wireless services. Synacor agrees to work directly with any such

 

	 	 
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Embarq approved third party content provider and to integrate all content that is not a
Premium Product [*]. Synacor will [*] Embarq to integrate Embarq sourced content for which integration is based on content
feeds delivered into the Embarq Portal(s) via Synacor’s Content Management System (“CMS”).
Other Embarq sourced content including, but not limited to, services requiring custom
programming by Synacor and/or services utilizing unified registration and login will be
[*] as applicable and specified in Section 5.10 below.

	 	2.10.	 	Wireless Capabilities and Services. During the Term, Synacor agrees to use
commercially reasonable efforts to develop and offer to Embarq, no later than June 30, 2007,
functionality that will allow Embarq Customers who also have wireless service to access
mutually agreed to portions of the Embarq Portal(s) from their wireless handsets. Such
capabilities shall include;
	 
	 	 	 	[*]

	 	2.11.	 	Internet Security Services.

	 	2.11.1.	 	Synacor will integrate F-Secure’s web-scanning engine into the Embarq Portal(s) upon
Embarq’s request. The provision of this service will be subject to F-Secure’s Service
Level Definition, Special Terms for Online Scanner, and End User License Agreement
attached hereto as Exhibits 5, 6, and 7 respectively.
	 
	 	2.11.2.	 	Security Suite Services Components. Each License and PC Key will provide
access to the latest release of Synacor’s Consumer Internet Security Suite (provided by
F-Secure). This suite currently consists of the following components: Virus &
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protection, automated software and virus signature upgrades, standard side grade (detects and/or
removes competing security products at install of F-Secure’s security products) support for
removing competitive programs on install, and Parental Control (for Consumer customers) and Access
Control (for Business customers). The components of the security suite may change from time to
time, but regardless of those changes, F-Secure will make its most current and advanced consumer
security offering available to Embarq throughout the Term of this Agreement. Multiple PC
installations will be supported with each License. The total number of PC installations per License
may not exceed [*] installations per Embarq Data Subscriber account.

	 	2.11.3.	 	Commercial Free
Music Radio. If Embarq so chooses, Synacor will incorporate a 40 genre commercial free music
radio service into the Embarq Portal(s). The monthly fee Synacor will charge Embarq for this
service will be [*]. This
pricing model is predicated on Embarq marketing a private MusicNet Subscription Music service or
services.

	 	2.12.	 	 

	 	2.12.1.	 	Promotional Support. Synacor will provide Embarq with on going promotional
support to assure maximum adoption of Email, the Embarq Portal(s) and premium services by
Embarq Customers. Such support will take the form of materials and guidance in the
construction of promotions supporting these products.
	 
	 	2.12.2.	 	Launch Support. Synacor will provide materials and guidance in support of:

	 	2.12.2.1.	 	[*]
	 
	 	2.12.2.2.	 	[*]
	 
	 	2.12.2.3.	 	[*]
	 
	 	2.12.2.4.	 	Synacor will assist in development of IVR and “on hold” scripts which would
include a mention of the Embarq Portal(s), email and premium services for Embarq
call centers
	 
	 	2.12.2.5.	 	Embarq may employ Synacor materials and guidance to support its launch of the
Embarq Portal(s).
	 
	 	2.12.2.6.	 	Synacor will provide start page programming and functionality to support
promotional activities such as customer daily/weekly prize entries.

	 	2.12.3.	 	On-going:

 

	 	 
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	 	2.12.3.1.	 	Promotional Campaigns — Synacor, at its option, will from time to time
design and implement periodic marketing promotions supporting the Embarq
Portal(s) and/or Premium Content Bundles each calendar year. [*]
	 
	 	2.12.3.2.	 	[*]
	 
	 	2.12.3.3.	 	[*]
	 
	 	2.12.3.4.	 	Synacor will assist Embarq in the development of IVR and “on hold”
scripts to support the Embarq 
Portal(s), email and Premium Content
Bundles for Embarq call centers.

	 	2.13.	 	Embarq Email Service — Features and Functionality. Synacor will build, deploy,
maintain, and support an Embarq branded email service. The services will incorporate
the following features and functionality:

	 	2.13.1.	 	Easy-to-use, intuitive Web mail User interface consistent with and comparable to
existing competitive interfaces.
	 
	 	2.13.2.	 	Support for full RFC-compliant POP protocol
	 
	 	2.13.3.	 	Wireless device support (including access to email and contacts, calendar, and related
content via mobile device with standard mobile web browser over WAP or HTTP protocol).
Synacor will make wireless Email service features available to Embarq Data Subscribers by
no later then June 30, 2007. Access to the Embarq Portal(s) through wireless devices and
all other Embarq Email Service Features and Functionality listed herein will be available
to Embarq Data subscribers on the Commercial Launch Date.
	 
	 	2.13.4.	 	Commitment to maintain, throughout Term, competitive User features such as HTML
messages, large attachments (10 megabytes), contacts/address book, contacts and calendar
sharing both publicly and restricted, inline spell checking and other features driven by
AJAX or similar technologies providing dynamic right-click menus, roll-over informational
pop-outs, and competitive AJAX-related technologies.
	 
	 	2.13.5.	 	Large mailboxes (1 gigabyte standard storage, with a practical upper storage limit
mutually agreed upon by the Parties)
	 
	 	2.13.6.	 	Robust filtering rules capable of features such as forwarding, filtering based on
headers, subject to, from, body, attachments, and other variables. Auto-sorting into
designated folders or tags. Ability to auto-delete messages based on filter criteria.
	 
	 	2.13.7.	 	Anti-virus, anti-spam, anti-phish, and anti-scam filtering consistent with and
comparable to industry standards; ability for User to set and manage filtering levels
within interface; ability to auto-file or tag identified messages to junk or similar
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	 	2.13.8.	 	Search Technologies. Ability to search within messages, contacts, and
calendars based upon headers, subject, to, from, body, and other variables.
	 
	 	2.13.9.	 	Organization. Ability to view threaded conversations. Ability to organize by folder
and by tags. Ability to drag and drop items among elements. Ability to resize panes.
Ability to preview messages in preview pane via AJAX or similar technologies. Ability
to dynamically detect and act upon dates, email addresses, and URL’s within messages.
Ability to store Drafts and track Sent messages.
	 
	 	2.13.10.	 	Security. Ability to access content via secure channel such as SSL (Secure Socket
Layer). Ability to block HTML-based images by default but permitting User to choose to
load such content.
	 
	 	2.13.11.	 	Topology. Ability for Embarq and User to create and manage parent and child
account hierarchies with associated control mechanisms through API and web-based
administrative interface. Ability of parent to manage and control child accounts such
as adding, deleting, and modifying.
	 
	 	2.13.12.	 	Administrative API and web-based interfaces which will permit Embarq to provide
Tier 1 and 2 support to consumers.
	 
	 	2.13.13.	 	Synacor shall provide Tier 3 support.

	 	2.14.	 	[*]
	 
	 	2.15.	 	Technical Support. Synacor will operate the Services at the levels and
performance and to provide Embarq with technical support services in accordance with the
Service Level Agreement (“SLA”) in Exhibit 8 attached hereto.

	3.	 	EMBARQ OBLIGATIONS

	 	3.1.	 	Delivery of Embarq Portal(s). Embarq shall, [*], deliver the
Embarq Portal(s) over the Embarq network to the modem or other customer premises equipment
(the “CPE”) of Users. Embarq shall, [*], provision and install any required
CPE at each User’s location.
	 
	 	3.2.	 	Marketing of the Embarq Portal(s). Embarq is responsible for selling,
advertising, promoting, and marketing the Embarq Portal(s).

 

	 	 
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	 	3.3.	 	Embarq Network. Except as otherwise provided in this Contract Order, Embarq
shall, [*], provide, install, manage, and maintain the networks and system
infrastructure (including, without limitation, the Embarq system, Embarq network and CPE)
necessary for the delivery of the Embarq Data Services to the Users. Embarq shall, [*], also provide connectivity, including Internet transit, for the Embarq
Portal(s) over the Embarq network and facilities.
	 
	 	3.4.	 	Distribution Channels. Embarq will determine in its sole discretion the
distribution channels through which the Embarq 
Portal(s) will be made available.
	 
	 	3.5.	 	Forecasts. Embarq will provide Synacor with an annual forecast by month for Users.
Updates will be provided throughout the year in the event the forecast materially
changes. Any failure by Embarq to meet a forecast provided to Synacor under this Section
will not be deemed a breach of this Agreement and will not result in any Embarq
liability.

	4.	 	JOINT OBLIGATIONS

	 	4.1.	 	Account Management. Synacor and Embarq shall, each at its own expense,
supply resources to support account management and reconciliation activities between the
two parties’ databases. These activities will be performed on a timely basis, and any
disputes will be resolved through the escalation processes. Each Party shall have a
designated account/product management team and will make available all technical and
operational information personnel and resources to develop, deploy and operate the Embarq
Portal(s).
	 
	 	4.2.	 	The Parties intend to support the relationship contemplated hereby with regular
meetings where information relevant to the delivery of the Embarq Portal(s) will be
shared.

	5.	 	PRICING

	 	5.1.	 	Portal Pricing/Fees. Beginning on the Commercial Launch Date of the Embarq
Portal(s) pursuant to and continuing throughout the Term, Embarq of shall pay Synacor [*]. Within 5 days after the end of
each calendar month, Embarq will provide to Synacor [*] for the purposes of validation of the portal fee payment to Synacor.
	 
	 	5.2.	 	[*]

 

	 	 
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[*]

	 	5.3.	 	Portal Development & Integration Fee (Non Re-occurring Expense). Embarq shall pay to
Synacor a Development Fee of [*] for the development of both the Consumer and Business
Embarq Portal(s). Half the Development Fee will be payable within ten (10) business days
after execution of an Agreement and the balance will be due within ten (10) business days
after commercial launch of the Embarq Portal(s), Premium Products and Internet Security
Services. The Commercial Launch Date will be the date upon which the said services are
available to Users in accordance with the Service Level Agreement, on a commercial basis
(i.e. not a beta, limited availability, or other test offering). [*]
	 
	 	5.4.	 	Search and Advertising Revenue Share.

	 	5.4.1.	 	Search Revenue Share. Revenue sharing between Synacor and Embarq for searches
executed through the Embarq Portal(s) will be as provided in the Search Revenue Sharing
Addendum, attached hereto as Exhibit 9. Embarq hereby agrees that the Search Services
described in the Search Revenue Sharing Addendum shall be incorporated as features into
the Embarq Portal(s).
	 
	 	5.4.2.	 	[*] Embarq may, but is not required to, permit advertising on
the Embarq Portal(s), and may control the type and amount of permitted advertising. Only
Synacor and Embarq may provide advertising within the Embarq Portal(s) to the extent that
Embarq authorizes any such advertising. Embarq shall receive [*] of Net Advertising
Revenue. “Net Advertising Revenue” includes all e-commerce revenue, and revenue from all
video advertising, banner advertising, and other forms of advertising that appear on or
within the Embarq Portal(s), including but not limited to: email, security, personal
start page, and other associated products and services less any cost associated with
placement, insertion and administration of such advertising. For clarity, Net Advertising
Revenue does not include revenue covered by the Search Revenue Sharing Addendum. This
arrangement will not preclude Embarq from placing advertisement for their own products
and service or those of their subsidiaries and affiliates [*]. Synacor will provide advertising
services to Embarq, which may include, without limitation, e-commerce, video, banner
advertising and other forms of advertising. Embarq may approve or disapprove any
marketing, advertising or messaging to Active Users within the Embarq

 

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Portal(s) or used in targeting Active Users outside the Embarq Portal(s). Specifically
prohibited is the marketing, advertisement or messaging of competitive telecommunication,
information or entertainment services, including but not limited to voice, video, data or
wireless services. Synacor agrees not to sell or provide any Embarq Portal(s) customer
lists to any third party. The general guidelines regarding appropriate advertising is
attached hereto as Exhibit 10, which may be amended from time to time by Embarq. Embarq
shall have the right to request that Synacor remove any advertising that conflicts with
an existing advertising relationship of Embarq, is not consistent with the guidelines set
forth in Exhibit 9, or if an Embarq Customer files a formal complaint with a regulatory
or law enforcement agency regarding such advertisement . Synacor shall disable
advertising services provided by such advertisement from the Embarq Portal(s) within ten
(10) days after receiving written notice from Embarq.

	 	5.5.	 	Integration of [*] Products. Synacor will integrate [*] that are made
available to Synacor and Embarq such as [*] into the Embarq Portal(s).
In no case will any [*] be added to the portal or will Synacor use products from
[*] without prior written approval from Embarq, which approval
will not be unreasonably withheld.
	 
	 	5.6.	 	Email Monthly Fees. The monthly fees charged Embarq by Synacor to provide Email
Service, as described above, will consist of the following:

	 	5.6.1.	 	Embarq shall pay Synacor [*] through out the
Term of this Agreement. Embarq will provide to Synacor the actual [*] for the purposes of validation of the monthly email fee payment to Synacor. Embarq
may offer up to [*] email accounts per Embarq Data Subscriber [*]. Additional email accounts will be provided by Synacor at a rate of [*].
	 
	 	5.6.2.	 	Embarq shall pay Synacor [*] to cover the cost of telecommunications
bandwidth to support the Email, Portal, Internet Security, and Premium Product Services.
	 
	 	5.6.3.	 	The monthly flat rate fee of [*] stated in item (a) of
this Section is based on the assumption that the average storage per mailbox [*]. If average storage per mailbox exceeds [*], Synacor shall
charge Embarq [*].
	 
	 	5.6.4.	 	Synacor will assist Embarq in establishing and will implement and maintain email
policies which maximize mailbox size efficiency.

	 	5.7.	 	Email Service Development Fee (Non-Recurring Expense): Embarq shall pay Synacor a
one-time Development Fee of [*] for the development of Consumer and Business email
products utilizing up to [*] available domain name(s) specified by Embarq. Should Embarq
desire Synacor to create a vanity email product for its business customers, the Parties will
negotiate a separate written addendum to this Contract Order. Embarq agrees to pay [*]
within ten (10) business days after execution of an Agreement and the balance will be due
within ten (10) business days after commercial launch of the Embarq Portal(s), Premium
Products and Internet Security Services. The Commercial Launch Date will be the date upon
which the said services are available to Users in accordance with the Service Level
Agreement, on a

 

*CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

12

 

commercial basis (i.e. not a beta, limited availability or other test offering). [*]

	 	5.8.	 	Wireless Portal Pricing. [*]. Any applicable
wireless portal fees will be mutually agreed upon prior to the general availability of the
wireless portal feature and will not exceed [*].
	 
	 	5.9.	 	Premium Bundle Pricing. In the event Embarq elects to make any Premium Content
Bundle, as currently specified in, or subsequently added to, Exhibit 3 below, available to
Embarq Data Subscribers, each month, Synacor shall bill Embarq for an amount determined by
multiplying the number of Subscription Accounts (as defined below) in a given month by the
monthly fee associated with the applicable Premium Content Bundle subscribed to by such
Subscription Account. For purposes herein, a “Subscription Account” is defined as an Embarq
Data Subscriber [*]. The number of
Subscription Accounts shall be counted by Synacor as of the last day of each month unless
otherwise agreed to by the Parties in writing. Synacor will provide the count of Subscription
Accounts within five days after the end of each calendar month.
	 
	 	5.10.	 	Carriage Fees. Embarq may, from time to time, choose to utilize Synacor Services for
the distribution of Value Added Services sourced by Embarq itself or under contract with third
parties which are offered either separately or as part of Embarq Data Services (“Embarq
Sourced Services”). If such Embarq Sourced Services are offered separately then Embarq shall
pay Synacor Carriage Fees each month defined to be [*]. If such Embarq Sourced Services are offered as part of Embarq Data
Services then Embarq shall pay Synacor Carriage Fees each month defined to be [*]. An example of how Carriage Fees are computed is attached hereto as
Exhibit 11. [*]. For purposes herein, a “Subscription Account” is
defined as an Embarq Data Subscriber who is [*]

 

*CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

13

 

[*]. The number of
Subscription Accounts shall be counted by Synacor as of the last day of each month unless
otherwise agreed to by the Parties in writing.

	 	5.11.	 	Security Suite Price Schedule. The prices listed below represents a [*] fee schedule with [*] on the number of Embarq Portal(s) subscribers that
can activate the Internet Security Suite of Services and is calculated based on a Embarq
Portal(s) subscriber count of [*]. If the total
Embarq Portal(s) Subscriber count is either above or below the Embarq Portal(s) Subscriber
Range, the monthly fee schedule detailed below will be adjusted [*] the Embarq Data Subscriber count is either less than or greater than the
boundaries of the Subscriber Range defined in the previous sentence.

	 	[*]	 	 

	6.	 	BILLING

	 	6.1.	 	Synacor provides billing recognition and billing components. This is achieved by the
following:

	 	6.1.1.	 	Integrated Billing, [*]
	 
	 	6.1.2.	 	Credit Card
	 
	 	6.1.3.	 	Manual Billing via Customer Service Representatives

	 	6.2.	 	Synacor logs every premium service subscription/cancellation transaction that passes
through the Portelus system. Synacor will deliver that data to Embarq, via the following
modalities at Embarq’s discretion:

	 	6.2.1.	 	[*]
	 
	 	6.2.2.	 	[*]
	 
	 	6.2.3.	 	An e-mail notification to a CSR (email once a day with a new subscriptions list)
	 
	 	6.2.4.	 	Pulled from Synacor’s API when needed
	 
	 	6.2.5.	 	Sent to Embarq in another standard or proprietary format for input into their billing
program

	 	6.3.	 	Premium Products and Internet Security Services will also be integrated into the
Embarq Portal(s) and unified with Embarq email login as well as integrating the billing of
Premium Products Bundles with Embarq billing and a credit card billing service.

 

	 	 	 
	*	 	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

14

 

	 	6.3.1.	 	Synacor and its partner F-Secure will provide training support for security,
both at initial launch and ongoing.

	 	6.3.1.1.	 	Synacor and its partner F-Secure will customize training as requested by
Embarq
	 
	 	6.3.1.2.	 	Synacor and its partner F-Secure will provide refresher training as
requested and at all major releases or functionality updates

	7.	 	OPERATIONS

	 	7.1.	 	Customer Care Obligations. Customer care responsibilities are as provided in
Exhibit 12, attached.
	 
	 	7.2.	 	Planning. Both Parties will advise each other in writing of any network,
software and services version releases and updates as far in advance as is commercially
reasonable, and shall share with the other Party any other relevant information as to
modifications to features of the Embarq Portal(s) controlled by that Party, in accordance
with the meeting schedules described in Section 4.2. Both Parties will meet quarterly for
reviews. For new products and services Synacor will map out timelines by month.
	 
	 	7.3.	 	Training. Training and development: (which apply to Email, Portal, Premium
Products and Internet Security Services):

	 	7.3.1.	 	Training Content and Technical Support materials will be developed and delivered
by Synacor

	 	7.3.1.1.	 	Drafts forwarded to Embarq’s training department on or before November
1, 2006
	 
	 	7.3.1.2.	 	Technical Support materials will be delivered to Embarq on or before
December 1, 2006
	 
	 	7.3.1.3.	 	Initial training materials and support for Synacor security services will be
delivered to Embarq on or before December 1, 2006

	 	7.3.1.3.1.	 	All security training will be customized as directed by Embarq
	 
	 	7.3.1.3.2.	 	Synacor will provide refresher training upon request and
immediately upon major software releases or functionality updates

	 	7.3.2.	 	Customization and localized content developed jointly by Embarq and Synacor on or
before November 1, 2006

	 	7.3.2.1.	 	Edits and final copy provided by Embarq 2 weeks prior to first training date

	 
	 	7.3.2.2.	 	Materials will be provided by Synacor

	 	7.3.3.	 	Delivery provided by Synacor at Embarq’s location

	 	7.3.3.1.	 	Embarq should have facilities and equipment available; Synacor will provide
access to all applicable portal and support systems test environments
	 
	 	7.3.3.2.	 	Embarq will provide training evaluation and participant satisfaction
statistics for feedback and quality assurance purposes.
	 
	 	7.3.3.3.	 	A Synacor Training Consultant will be available for classroom or webinar
delivery.

15

 

	 	7.3.3.4.	 	The Training Consultant can provide single or multiple
Train-the-Trainer sessions or Agent sessions.
	 
	 	7.3.3.5.	 	[*]

	 	7.4.	 	Network and Connectivity. [*] for
the exchange of all relevant traffic generated by the delivery of the Embarq Portal(s).
Embarq will be responsible for all network issues, including but not limited [*],
provisioning, network integrity, central office issues, backhaul, customer services, and all
support of network issues occurring on the Embarq Network. The Parties agree that bandwidth
usage associated with services not currently in the Embarq Portal(s) may have significant
costs to Synacor and in such cases the Parties will address those costs in good faith
negotiations at the time of inclusion of such services.
	 
	 	7.5.	 	Service Changes. In the event either Party makes changes to its service which
affects the ability of the other Party to provide service to the Embarq Portal(s) Customers
as envisioned herein, the Party making the change agrees to evaluate any new processes to
ensure that they will function appropriately with the other Party’s systems, and will include
the other Party in the testing of the new functionality to verify that the new processes are
working properly. Synacor will notify EMBARQ in writing of any changes to be made to the
Embarq Portal(s), Security Software, Premium Bundles, or any other change impacting Embarq
customers 60 days prior to making such changes. Embarq will be given a minimum of 2-weeks to
test the changes prior to implementation, with the right to delay implementation if issues
are encountered in Embarq testing.
	 
	 	7.6.	 	Break/Fix. In the event that Synacor makes any changes pursuant to its Portelus
Service, which affects the Embarq Portal(s) Customers services, Synacor agrees to include
Embarq in the evaluation of any new processes to ensure that it will function appropriately,
in accordance with the Change Management Process set forth in Exhibit 13. Synacor will
include the other Party in the testing of the new functionality to verify that the new
processes are working properly.
	 
	 	7.7.	 	Privacy/Conditions of Use. Each Party will retain its own separate privacy policies,
which policies will be consistent with each other, and which will independently govern that
Party’s provision of service to the Embarq Portal(s) Customer. Terms and Conditions of Use
for the access service will be mutually agreed upon. All other User policies relating to the
use of the Internet and the Embarq Portal(s) (e.g. acceptable use, web site usage, free web
space, and community guidelines), will be mutually agreed upon and materially the same as the
policies used by Synacor in connection with the Synacor Services.
	 
	 	7.8.	 	Security. The Parties agree that network and services security issues are of the
utmost importance to each Party, and the Parties agree to provide corporate security contacts
for coordination of security issues. The Parties agree to cooperate reasonably with each
other on security issues, including but not limited to:

	 	7.8.1.	 	“Phisher” sites and emails;
	 
	 	7.8.2.	 	Spam (incoming and outgoing);
	 
	 	7.8.3.	 	Denial of service attacks;
	 
	 	7.8.4.	 	Criminal use of the Embarq Portal(s), including, but not limited to, identification of
the offending User;
	 
	 	7.8.5.	 	Credit card or other payment fraud; and

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

16

 

	 	7.8.6.	 	Any other issue identified by either Party in good faith as a critical security issue.

	 	7.9.	 	Internet Security Services Support. Should Embarq so choose, Synacor and F-Secure
will train Embarq’s Tier 1 technical support personnel and provide continuously updated online
support and product information tools. F-Secure will provide Embarq Tier 2 and Tier 3 in
accordance to the Service Level Definition attached hereto. Synacor and F-Secure will work
with Embarq to integrate the Internet Security Services support tools with Portal and email
support tools prior to launch of Embarq Portal(s). The integrated support tools provided will
be accessed via single-sign-on by authorized Embarq data technicians. Synacor agrees to ensure
that Embarq has access to all available F-Secure support tools, including but not limited to
knowledge bases, FAQs, diagnostic tools, and web-based scanning engines.
	 
	 	7.10.	 	Personnel. Synacor will designate a manager as the primary point of contact for
Embarq with regards to the matters contained in this Agreement. Embarq will designate a
similar primary contact person within Embarq who will be the primary point of contact for
Synacor with regards to the matters contained in this Agreement.
	 
	 	7.11.	 	Reports.

	 	7.11.1.	 	Synacor will provide reports in accordance with Exhibit 7 attached.
	 
	 	7.11.2.	 	Reports will be available online through Portelus.

	 	7.12.	 	Customer Account Maintenance and Data Exchange.

	 	7.12.1.	 	Embarq and Synacor will work together to design, develop and implement API
processes to support account activation (registration), account maintenance/updates,
product changes, and cancellations of service.
	 
	 	7.12.2.	 	Embarq and Synacor will work together to design, develop and implement API
processes to support the data technician support tools described in sections 7.19 and
7.20 of this Order.
	 
	 	7.12.3.	 	[*]
	 
	 	7.12.4.	 	[*]
	 
	 	7.12.5.	 	All maintenance/update, and cancellation records shall include the unique Embarq
identifier to allow Synacor to properly locate and identify the customer account in
the Synacor system and perform the change request.
	 
	 	7.12.6.	 	Both parties shall provide a minimum of 60 calendar days advance notice for any
changes to the maintenance and registration API processes. If development is required
by either party, the parties will work together to determine a reasonable delivery
date.
	 
	 	7.12.7.	 	Both parties will provide the ability to conduct regression testing for any of the
established processes.

 

	 	 	 
	*	 	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

17

 

	 	7.12.8.	 	Any Embarq customer information provided to Synacor will be deemed
Embarq Confidential Information and handled by Synacor in accordance with
Section 10 of the Master Services Agreement.

	 	7.13.	 	Authentication Security. Synacor will authenticate Users logging into the Portal per
the username and password established at the time of registration of the account. Synacor will
maintain username/password database, and provide functionality through a customer,
self-service Portal Account Management tool available to authenticated subscribers. This
self-service tool will provide, but is not limited to, the capability for the customer to
change passwords, change username/email address, add mailboxes, and delete mailboxes.
	 
	 	7.14.	 	Network Architecture. Embarq will be responsible for all aspects of the Embarq
System and Network infrastructure facilities from the Service Subscribers’ CPE through
connectivity to the Internet. Embarq shall provision the Embarq Portal(s) for Service
Subscribers and shall control all DHCP servers and routers necessary for that function.
Additionally, Embarq will provide and manage a block of IP addresses sufficient to meet the
demands to provision the personal computers of Service Subscribers. Synacor will be
responsible for all aspects of the Synacor Services infrastructure facilities, hosting,
caching and software used by Synacor to provide the Synacor portion of the Embarq Portal(s).
	 
	 	7.15.	 	Systems Interfaces. Both parties will develop and implement systems and interfaces
as necessary to provide functionality necessary to the other party to perform its duties and
responsibilities in accordance with the SLA.
	 
	 	7.16.	 	Systems Roadmaps. Both parties agree to provide an overall systems roadmap with
respect to the Embarq Portal(s) that the parties may provide over the Embarq Network with the
other Party on a bi-annual basis to obtain feedback and comments. Both Parties agree to keep
these systems roadmaps in the strictest confidence, and shall not disclose such information
shared. In addition, both Parties agree to provide reasonable notice of systems and/or
service changes and/or launches with detailed requirements. These launches will require that
both teams agree to timelines, approach and project details and agree to supply the other
Parties with resources to support these efforts. Any development necessary for the
continuation of services belong to Synacor.
	 
	 	7.17.	 	Infrastructure. Each Party will bear its own costs of agreed upon infrastructure
enhancements to enable the two companies to exchange order, billing, and account maintenance
information, and reports, including but not limited to (1) an automated maintenance file
transfer process, and (2) an automated billing reconciliation process.
	 
	 	7.18.	 	Intentionally Omitted
	 
	 	7.19.	 	Synacor will provide APIs and/or on-line, integrated support tools to be utilized by Embarq
Data Technicians for Tier 1 and Tier 2 Support for Email, Security, and the Portal. Such
tools will provide the following functionality and will be available to EMBARQ at time of
launch:

	 	7.19.1.	 	Password Look-Up Functionality — will enable the data technician to look-up
password to assist customers who have forgotten passwords.
	 
	 	7.19.2.	 	Password Reset — will enable the data technician to ‘reset’ or change a customer’s
password in real-time.

18

 

	 	7.19.3.	 	Add a Mailbox to a Primary Customer Account — will enable the data technician to
add a secondary mailbox to a Primary Customer Account — up to the maximum mailboxes
allowed per a single subscriber account.
	 
	 	7.19.4.	 	Delete a Mailbox from a Primary Customer Account — will enable the data technicians to
delete or remove a secondary mailbox from a Primary Customer account.
	 
	 	7.19.5.	 	Change the Primary Mailbox — will enable the data technician to change the Primary Mailbox
on the account. This includes making the Primary mailbox a secondary mailbox and making a
secondary mailbox a primary mailbox on the account.
	 
	 	7.19.6.	 	Move a Mailbox — will enable the data technician to move a mailbox from Primary Account to
another.
	 
	 	7.19.7.	 	Update or change customer information — enable the data technician to change customer
information captured in the Synacor system. Information to include, but is not limited to,
customer name, customer telephone number, Account Type (Residential or Business), Account
Service (if offering premium levels of service), and any other EMBARQ customer information
captured within the Synacor system.
	 
	 	7.19.8.	 	Reactivate Accounts — will enable the data technician to reactivate accounts that are
‘active’ in the EMBARQ system but have been deactivated in the Synacor system — will
reactivate Email service, Portal access, and security software services.
	 
	 	7.19.9.	 	Deactivate Accounts — will enable the data technician to deactivate accounts that are
‘active’ in the Synacor system, but have cancelled service in the EMBARQ system — will
deactivate email service, Portal Access, and security software services.
	 
	 	7.19.10.	 	Email Issue Resolution — Synacor will provide tools necessary to troubleshoot and resolve
common email issues.
	 
	 	7.19.11.	 	Security Software Issue Resolution — Synacor will provide tools necessary to troubleshoot
and resolve common Security Software issues.
	 
	 	7.19.12.	 	Portal Issue Resolution — Synacor will provide tools necessary to troubleshoot and
resolve common issues encountered by customers with the Portal.
	 
	 	7.19.13.	 	The data technician support tools outlined above will utilize account look-up
functionality based on telephone, email address, or account number or username.
	 
	 	7.19.14.	 	In all cases where Embarq Data Technicians or Customer Service Reps are updating customer
account information via the support tools provided by Synacor, Embarq will assume the
responsibility of verifying the customer’s identity per Embarq standard practices.
	 
	 	7.19.15.	 	Synacor will provide an Agent Management Tool, to be administered by Embarq designated
management. Such tool will allow Embarq management to grant and remove access to the Support
Tools provided by Synacor for Tier 1 and Tier 2 Support as outlined above. Such tool will be
provided to Embarq at time of launch.

19

 

	 	7.19.16.	 	Synacor will work with Embarq to integrate via API interface the
above outlined support tools into the Embarq data technician desktops. In
addition, these support tools can be accessed via Synacor provided URL by
authorized parties.

	 	7.20.	 	Tier 3 Support

	 	7.20.1.	 	Synacor will provide a ticket escalation system/process to be utilized by
Embarq data technicians when issues are encountered related to the Portal, email,
and security software that cannot be resolved through Tier 1 or Tier 2. Synacor
will provide 24/7 support and will adhere to the SLA.
	 
	 	7.20.2.	 	Account Creation/Registration: Synacor will work with Embarq and/or Embarq
appointed 3rd party vendor to design, modify and incorporate installation
processes for new High-speed Internet customers related to new account
activation, email account creation, and security software download and set-up.

	 	7.21.	 	Customer Service. Embarq will provide “first-line” customer service via
interactive voice response (“IVR”) or customer service representative to Users, including
all inquiries with respect to installation disks, account maintenance, network level
service, service provisioning and billing or any other functionality or services provided
by or on behalf of Embarq. In addition, Embarq will provide Tier 1 and Tier 2 support,
including all inquiries with respect to email, Portal, and security to the extent that
tools are provided in the matrix outlined above. Synacor will provide Tier 3 support via
a ticket escalation system or phone escalation as outlined in Exhibit 11 of this
document.

	8.	 	OWNERSHIP AND LICENSES

	 	8.1.	 	Interface Brand and Content.

	 	8.1.1.	 	As between Synacor and Embarq, Synacor will have full and exclusive right, title and
ownership interest in and to Synacor Properties (as defined in Exhibit 4), Synacor
Content, Synacor Tools, the Back End Interface and the Intellectual Property Rights
therein, and Embarq will have full and exclusive right, title and ownership interest
in and to Embarq Content, Embarq Brand Features, and the Intellectual Property Rights
therein.
	 
	 	8.1.2.	 	Embarq will control all aspects of the Embarq Portal(s) and will brand the Embarq
Portal(s) only using Embarq trademarks, although Embarq may include a notice that the
Embarq Portal(s) is powered by Synacor.
	 
	 	8.1.3.	 	Embarq will have complete editorial control, with respect to the placement and
content, advertising, and any language within the Embarq Portal(s).
	 
	 	8.1.4.	 	[*].

	 	8.2.	 	Grant of License by Embarq. Embarq hereby grants to Synacor during the term of
this Contract Order a non-exclusive, non-transferable, non-sublicenseable, royalty-free,
worldwide license under all of Embarq’s Marks (as defined below) to use, reproduce,

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

20

 

publicly display, publicly perform, distribute and transmit the Embarq Brand Features on the
Embarq Portal(s) in the manner described in this Contract Order, and for any other use for
which Synacor receives prior written approval from Embarq, subject in each case to compliance
with any and all Embarq Brand Guidelines.

	 	8.3.	 	Grant of License by Synacor. Synacor hereby grants to Embarq during the term of this
Contract Order a nonexclusive, non-transferable, non-sublicenseable, royalty-free, worldwide
license under all of Synacor’s Marks to use, reproduce, publicly display, publicly perform,
distribute and transmit Synacor Brand Features and Synacor Content on the Embarq Portal(s) in
the manner described in this Contract Order, and in connection with the distribution,
marketing and promotion of the Embarq Portal(s), subject in each case to compliance with any
and all Synacor Brand Guidelines.
	 
	 	8.4.	 	Trademark Restrictions. The mark owner may terminate the foregoing license if, in
its reasonable discretion, the licensee’s use of the marks tarnishes, blurs or dilutes the
quality associated with the marks or the associated goodwill and such problem is not cured
within 20 days of notice of breach; alternatively, instead of terminating the license in
total, the owner may specify that certain pages of the licensee’s website may not contain the
marks. Title to and ownership of the owner’s marks shall remain with the owner. The licensee
shall use the marks exactly in the form provided and in conformance with any Brand
Guidelines. The licensee shall not take any action inconsistent with the owner’s ownership of
the marks, and any benefits accruing from use of such marks shall automatically vest in and
accrue to the benefit of the owner. The licensee shall not form any combination marks with
the other party’s marks.
	 
	 	8.5.	 	Content Standards. Each party agrees to display mutually agreeable trademark and
copyright notices or legends of the other party when using such other party’s Brand Features.
Each party shall in advance submit to the other party the proposed placement of such notices
or legends (including, without limitation, the place and manner of incorporation into
electronic media or transmissions), and such other party shall have the right to approve the
same.

	 	8.5.1.	 	Embarq shall not provide any Embarq Content, and Synacor shall not provide any Synacor
Content that is created and developed solely by Synacor, that: (a) infringes any third
party’s copyright, patent, trademark, trade secret or other proprietary rights or rights
of publicity or privacy; (b) violates any law, statute, ordinance or regulation (including
without limitation the laws and regulations governing export control, unfair competition,
antidiscrimination or false advertising); (c) is defamatory, trade libelous, unlawfully
threatening or unlawfully harassing; (d) is obscene, harmful to minors or child
pornographic; (e) contains any viruses, Trojan horses, worms, time bombs, cancelbots or
other computer programming routines that are intended to damage, detrimentally interfere
with, surreptitiously intercept or expropriate any system, data or personal information;
or (f) is materially false, misleading or inaccurate. For the sake of clarity, for the
purposes of this Section 8.51, Synacor Content shall not include any Content provided by
Synacor Providers.

21

 

	 	8.5.2.	 	Synacor shall not provide any Synacor Owned Content that violates any law.

	 	8.6.	 	Reserved Rights. Without limitation of the foregoing, each party reserves all
rights other than those expressly granted in this Contract Order, and no licenses are
granted except as expressly set forth herein and each party shall retain all right, title
and interest in and to its logos and product and service names and trademarks (the
“Marks”), technology and other intellectual property (including without limitation, in the
case of Synacor, the tools, templates, frameworks or other software owned or licensed by
Supplier and used in connection with the Service (the “Software”) and Services). Neither
party shall take any action inconsistent with such ownership. This is a contract for
services only. All Software, hardware and other technology used to provide the Services
will be installed, accessed and maintained only by or for Supplier and no license therein
is granted to Embarq. Embarq shall not use Supplier’s Marks, Software or Services in any
manner except as specifically provided herein.
	 
	 	8.7.	 	Link License. Embarq grants to Synacor a non-transferable, non-exclusive,
royalty-free license to use the Embarq Marks on the Synacor websites and to hyperlink the
Synacor websites to the Embarq websites selected by Embarq (the “Embarq Links”), provided
that Embarq approves in advance all uses of the Embarq Marks on the Synacor website as
further described in this paragraph 8.7.

	9.	 	POST-TERMINATION OBLIGATIONS.

	 	9.1.	 	Upon notice of termination of this Contract Order by Embarq for any reason or upon
Embarq’s provision of a notice of nonrenewal to Synacor, at Embarq’s request Synacor
agrees to assist in the transition of EMBARQ customer email, Portal Homepage, Security,
and Premium Services away from Synacor hosted services to Embarq or to a third party
designated by Embarq. In addition, the parties agree that during a Transition Period, the
parties will continue to be bound by and perform in accordance with this Contract Order,
and Synacor will continue to assist Embarq as provided above and Embarq will continue to
pay for the Services. Synacor’s assistance in this transition during the Transition Period
will be provided [*]. Such support
includes, but is not limited to:

	 	9.1.1	 	Whitelist of the designated Embarq partner IP ranges to allow access to
Synacor servers and Webmail interfaces.
	 
	 	9.1.2	 	Provide ongoing lists or access to Embarq customer usernames and passwords,
including primary and secondary designation and username and passwords per account.
	 
	 	9.1.3	 	Disable the Synacor hosted Portal for EMBARQ customers effective with the
beginning of the migration period.

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

22

 

	 	9.1.4	 	Redirect EMBARQ customers attempting to log-in to any Synacor — hosted
application (Portal, Webmail, etc.), to a URL to be provided by Embarq. Redirection
to continue throughout the length of the migration period.
	 
	 	9.1.5	 	Provide access to all email messages, address books, and mail folders for
migration to the new Portal Partner, (i.e., IMAP interface or other agreed upon
method of access)
	 
	 	9.1.6	 	Allow email forwarding for migrated customers for 6 months after the account
has been migrated.
	 
	 	9.1.7	 	Continue operational support and business as usual for all ‘non-migrated’
customers and supporting processes throughout the migration period. Including, but
not limited to, Technical Support Tools, API processes to support account updates
and cancellations, reconciliation activities, reporting tools, and other day-to-day
operations.

	 	9.2.	 	Within 30 days after the end of the Transition Period, Synacor will return to
locations designated by Embarq any Embarq-Owned Property.
	 
	 	9.3.	 	Within 90 days after the end of the Transition Period, Synacor will invoice Embarq
for any final amounts due under this Contract Order. Embarq will pay undisputed portions
of all amounts reflected in the invoice within 45 days of Embarq’s receipt of the
invoice.
	 
	 	9.4.	 	After the Transition Period, the parties will discontinue making any statements or
taking any action that might cause third parties to infer that any business relationship
continues to exist between the parties under this Contract Order, and where necessary or
advisable, inform third parties that that Parties no longer have a business relationship
under this Contract Order.
	 
	 	9.5.	 	For a period of three (3) years after the expiration or other termination of this
Contract Order, Synacor agrees that it will not directly target any Users, or use any
Embarq Data to target any Users, to switch from their Embarq high-speed internet service
to a broadband data service offering sold by Synacor or by a Synacor marketing partner.
The foregoing shall not apply to any of Synacor or Synacor’s marketing partner’s general
advertisements, or a User that switches of his or her own volition.

23

 

	 	 	 	 	 	 	 
	SIGNED:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	EMBARQ MANAGEMENT COMPANY

	 	 
	 	SYNACOR, INC.
	 	 
	 
	 	 	 	 	 	 
	/s/ David Platt

	 	 	 	/s/ Frank J. Codella	 	 
	 

	 	 	 	 	 	 
	(signature)

	 	 	 	(signature)	 	 
	Print name: David Platt

	 	 	 	Print name: Frank J. Codella	 	 
	Title: VP — Procurement

	 	 	 	Title: Vice President of Sales	 	 
	Date: 12/4/06

	 	 	 	Date: 11/27/06	 	 

24

 

Exhibit 1

Initial Content to be Integrated into the Embarq Portal(s)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Rev.
	Category	 	Description	 	Provider	 	Refresh Rate	 	Share
	 
	 	 	 	 	 	 	 	 
	 

	 	Directories	 	 	 	 	 	 
	 

	 	Yellow & White Pages
	 	Online search functionality
	 	[*]
	 	Real time
	 
	 	 	 	 	 	 	 	 
	 

	 	Maps
	 	Maps & Directions
	 	[*]
	 	Real time
	 
	 	 	 	 	 	 	 	 
	 

	 	Restaurant Search
	 	Search tool
	 	[*]
	 	Real time
	 
	 	 	 	 	 	 	 	 
	(ii)

	 	Search Services
	 	Web search
	 	[*]	 	Real time 	 	See
“Advertising Addendum”
	 
	 	 	 	 	 	 	 	 
	(iii)

	 	Horoscopes
	 	Online horoscopes
	 	[*]
	 	Daily
	 
	 	 	 	 	 	 	 	 
	(v)

	 	[*] News
service:

o National News

o World News

o Sports News

o Entertainment News

o Health News

o Business and
Finance News

o Science &
Technology
	 	Text, pictures, videos, and
audio, (“[*] News
Service”) — English & Spanish
language. When a User clicks
on a news story or video the
User will remain within the
portal. [*] video content will
generally be delivered at an
encoding rate of at least
300kbs.

Sports sub categories:
	 	[*]
	 	between
every
20
minutes
and 1.5
hours

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

25

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Rev.
	Category	 	Description	 	Provider	 	Refresh Rate	 	Share
	 

	 	 	 	Baseball, Basketball, Hockey,
Golf, Auto Racing, Football,
Soccer, Boxing and Tennis	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Business & Finance sub
categories: Market snapshot,
Market movers (top
gainers/losers) Most active
portfolio tracking & personal
finance stories from [*]	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Business & Finance sub
categories: Market snapshot,
Market movers (top
gainers/losers) Most active
portfolio tracking & personal
finance stories from [*]	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Entertainment sub categories:	 	 	 	 
	 

	 	 	 	Box office snapshots, Top
movies, entertainment news
and gossip from [*] updated
daily	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Photo
	 	[*]
	 	[*]
	 	N/A
	 
	 	 	 	 	 	 	 	 
	(vii)

	 	Local
	 	Local news, events, lottery
results, restaurants &
entertainment and shopping
based on Zip code — Local
news from News papers across
North America,
	 	[*]
	 	Real — time — News/Gas
Prices
Daily — Events/
Lottery
	 	[*]

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

26

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Rev.
	Category	 	Description	 	Provider	 	Refresh Rate	 	Share
	 

	 	 	 	 	 	[*]	 	 
	 
	 	 	 	 	 	 	 	 
	(viii)
	 	Music news.	 	News & Top ten ranking
	 	[*]
	 	weekly
	 

	 	 	 	 
	 	[*]
	 	hourly
	 
	(ix)

	 	Searchable TV listings
	 	by Zip Code
	 	[*]
	 	Daily
	 
	 	 	 	 	 	 	 	 
	(x)

	 	Local Movie Listings.
	 	by Zip Code
	 	[*]	 	Daily
	 

	 	 	 	 	 	 	 	Daily
	 

	 	Video trailers
	 	 	 	[*]
	 	weekly
	 
	 	 	 	 	 	 	 	 
	(xi)

	 	Financial Markets &

Stock Quotes
	 	Major indexes (Dow, Nas *
S&P) and individual equities
and Funds
	 	[*]
	 	20 minutes
	 
	 	 	 	 	 	 	 	 
	(xiii)

	 	Games Channel
	 	Aggregation of games related
content
	 	[*]	 	weekly
	 
	 	 	 	 	 	 	 	 
	(xiv)

	 	Spanish content
	 	News in Spanish (selectable
by User)
	 	[*]
	 	20 minutes
	 
	 	 	 	 	 	 	 	 
	(xv)

	 	Downloadable
Toolbar (branded to
Embarq)
	 	Toolbar which attaches to web
browsers and provides quick
access to search and other
customizable features
	 	Synacor
	 	customized &

changeable by User
	 
	 	 	 	 	 	 	 	 
	(xvi)

	 	Household Management
	 	Account management,
restricting access, spending
limits & bill presentment
features
	 	Synacor
	 	N/A
	 
	 	 	 	 	 	 	 	 
	(xvii)

	 	Quick links
	 	Application which allows
Users to setup links & store
username & passwords for easy
access
	 	Synacor
	 	N/A

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

27

 

Exhibit 2

Vendors Integrated

The vendors listed below represents the snapshot of the Parties content relationships. This

list will change as vendors are both added and deleted from time to time.

Synacor Content Relationships

[*]

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

28

 

[*]

 

* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

29

 

Exhibit 3

Premium Bundles

Premium Products: Synacor shall collaborate with Embarq to design premium content bundles that
address consumer interests and meet Embarq’s marketing and budgetary objectives. To this end,
Premium Products can be marketed as a la carte consumer offerings and/or product bundles can be
configured and selectively embedded in various DSL tiered offerings to enhance their perceived
value and consumer appeal.

	 	a.	 	Premium Bundles. The following Premium Bundles are examples of the products
available to Embarq for distribution to Users. Synacor will work with Embarq, prior the
Commercial Launch and throughout the Term of this Agreement, to design Premium Content
Bundles that meet Embarq business objectives:
	 
	 	(i)	 	Family Bundle. The Family Bundle shall include all of the following:

	 	•	 	Encyclopedia Britannica — Unlimited access to the updated
32-volume Encyclopedia Britannica, plus: Britannica’s Student & Concise
encyclopedias, thousands of exclusive video and audio clips
	 
	 	•	 	Shockwave Gameblast — 100 popular premium online and
downloadable games
	 
	 	•	 	American Greetings — Print and Send Greeting cards and
access to member’s only online greeting cards
	 
	 	•	 	Clever Island —  Focuses on the educational skills that are
most important to a child’s development, including language, numbers, spatial
reasoning, logic, and critical thinking. Activities are designed by leading
experts in education and child development to be engaging, powerful, and fun
	 
	 	•	 	Fox Sports —  Video clips and highlights from all the
professional leagues, NASCAR and college athletics as well as the “Best Damn
Sports Show Period.”
	 
	 	•	 	Weather.com —  Local, regional and national video weather
reports and special feature categories. (Subject to approval by Weather.com.)
	 
	 	•	 	Major League Baseball —  Access to GameDay Audio (listen to
every game played that day), Condensed Video Games, Post Game Highlights, MLB
Custom Cuts and MLB Radio.

Cost to Embarq per DSL Subscriber: [*]

	 	(ii)	 	Educations Bundle The Education Bundle shall include the following:

	 	•	 	Encyclopedia Britannica —  Unlimited access to the updated 32-volume
Encyclopedia Britannica, plus: Britannica’s Student & Concise encyclopedias,
thousands of exclusive video and audio clips

 

* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

30

 

	 	•	 	Clever Island —  Focuses on the educations skills that are most important to a
child’s development, including language, numbers, spatial reasoning, logic and
critical thinking. Activities are designed by leading experts in education and child
development to be engaging, powerful and fun
	 
	 	•	 	I Know That —  allows children from ages 2 to 12 to discover the magic and
power of lifelong learning skills. All activities are highly interactive, and use
state of the art web multimedia including heavy animation, sound, and digitized
children’s voices.
	 
	 	•	 	Nutshell Math Essential — 

	 	•	 	Hundreds of math topics explained in Multimedia Listen & ViewTM
format.
	 
	 	•	 	Hear the teacher’s voice. See the teacher’s handwriting.
	 
	 	•	 	Quizzes with detailed answers to help students prepare for tests
and track their improvements.
	 
	 	•	 	Available for Middle School Math / Pre-Algebra, Algebra 1, Algebra
2, and Geometry

	 	•	 	Boston Test prep — online SAT prep Course makes the preparation process
easy and quick.

	 	•	 	Practice with over 2500 SAT style questions
	 
	 	•	 	Evaluate strengths and weakness immediately
	 
	 	•	 	Study with more than 30 audio/video lessons

Cost to Embarq per DSL Subscriber: [*]

	 	(iii)	 	Games Bundle The Games Bundle shall include the following:

	 	•	 	IGN Insider
	 
	 	•	 	Lego PC Games
	 
	 	•	 	Atari Classics Games
	 
	 	•	 	Sega Classic Games
	 
	 	•	 	Yummy Games  — popular parlor games, PC Games and on-line games.
	 
	 	•	 	Portable Gaming Magazine (Empyrean)

Cost to Embarq per DSL Subscriber: [*]

	 	(iv)	 	Subscription Music Services:

	 	i.	 	Embarq Music2Go

	 	•	 	MusicNet — Unlimited song download service which includes
unlimited song downloads to WMP 10 supported portable devices and personal
computers from over 2,000,000 tracks; as well as commercial free radio and
video. Subscribers can also purchase tracks.

	 	 	 	Cost to Embarq: [*]

 

* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

31

 

	 	ii.	 	Embarq Music (non portable):

	 	•	 	MusicNet — Unlimited song download service which includes unlimited song downloads
to WMP 10 supported personal computers from over 2,000,000 tracks; as well as commercial
free radio and video. Subscribers can also purchase tracks
	 
	 	•	 	Sync Magazine — From Zinio (Synacor may include additional Magazines)

	 	 	 	Cost to Embarq: [*]

 

* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

32

 

Exhibit 4

PREMIUM SERVICES & CONTENT DISTRIBUTION ADDENDUM

TO

SYNACOR MASTER SERVICE AGREEMENT AND CONTRACT ORDER

     If any provision of this Addendum conflicts with a provision of the Master Services Agreement
or the Contract Order, the provision of the Master Services Agreement or Contract Order, as
applicable, shall control. Capitalized terms used but not defined in this Addendum shall have the
meanings ascribed to them in the Master Services Agreement or the Contract Order.

1. Premium Content. The content to be distributed hereunder may be obtained by Synacor (the
“Synacor Content”) and/or by Embarq (the “Embarq Content”). The Synacor Content and the Embarq
Content are hereinafter referred to collectively as the “Content”. Distribution rights to the
Synacor Content will be obtained by Synacor from third party content providers (each individually a
“Synacor Provider” and collectively, the “Synacor Providers”) for the non-exclusive distribution by
third parties including, but not limited to, Embarq. The Embarq Content will be owned by Embarq or
licensed by Embarq from third party Content providers (each individually an “Embarq Provider” and
collectively, the “Embarq Providers”). The Embarq Providers and the Synacor Providers are
hereinafter referred to collectively as the “Providers”.

2. Users, Registration Pages. It is intended that the Content will be accessed by Users through
the System described in Section 3 below. Synacor may require the use of user interfaces or other
identification verification methods in order for the Users to access the Content. As may be
determined by the parties and subject to revision during the Term as the parties may determine,
System web pages and/or Content will be hosted and served by Synacor or Embarq, subject to the
approval of Synacor.

3. Content Hosting and Delivery System. Synacor will maintain a User registration and login system
that is integrated with its content provisioning solution (the “System”) which will be used to
control User access to the Content and to manage the updating and delivery of the Content to the
User. Depending upon the System implementation for Embarq, as such may be revised during the Term
by consent of the parties, hosting and serving of Content may be provided by Embarq, Embarq
Providers, Synacor and/or by Synacor Providers. To the extent that Synacor Provider’s or Embarq
Provider’s systems are used to host or serve Content, the service levels and availability of such
systems for Users will be no lower than the service levels and the availability of such systems to
other content distributors or consumers. With Embarq’s prior written consent, Synacor can: (i)
offer new Content which it has obtained for distribution; (ii) create and modify bundles of
Content to be made available to Users; (iii) edit or modify the editorial content and design of
the web pages with which the consumer interacts in order to access the Content; and (iv) remove
any or all of the Content from availability to Embarq’s Users. Synacor shall take all commercially
reasonable steps necessary to implement any such Embarq decisions as soon as is reasonably
practicable; provided, however, that where Embarq requests that any specified piece of Content be
removed from the System, Synacor shall remove such title or titles from the System as
expeditiously as possible, and in all events within seventy-two (72) hours after receipt of notice
from Embarq.

4. Subscriber Billing. User billing will be the sole responsibility of Embarq, except any
transactions that Embarq directs Synacor to offer via credit card billing.

5. Terms of Use. In order to complete his or her registration as a subscriber, each User will be
required to electronically accept the Terms of Use (“TOU”) as mutually agreed by Synacor and
Embarq. Prior to acceptance of the TOU, Synacor shall present each User with the opportunity to
review and agree to the TOU. Synacor shall not amend, modify or otherwise change the TOU without
the consent of Embarq, which will not be unreasonably withheld or delayed, provided, however, that
the terms of the TOU may be amended, modified or otherwise changed by Synacor as necessary to
comply with the requirements of any Synacor Provider or applicable law.

6. Licenses.

33

 

(a) Subject to the provisions of the Master Services Agreement, the Contract Order, this Addendum
and all other amendments, addendums, schedules and/or exhibits to the Master Services Agreement
(hereinafter referred to collectively as the “Agreement”), Synacor grants to Embarq during the
Term, a limited, non-exclusive, non-transferable, right and license to: (i) transmit and distribute
individual copies of the Synacor Content, solely for purposes of distributing the Synacor Content
to Users located in the United States who are subscribers to Embarq’s internet services; and (ii)
use and utilize such Synacor and Synacor Provider trademarks, logos and other works which are
protected by intellectual property rights laws (the “Synacor Properties”) in connection with the
distribution of Content to Users pursuant to this Agreement. Embarq expressly agrees that it shall
not, and shall not permit any third party to, duplicate, copy, modify, amend, add to, delete from
or otherwise make any change whatsoever in the Synacor Content or otherwise violate any
intellectual property rights in the Synacor Content including but not limited to copyrights of
third parties therein.

(b) Subject to the provisions of the Agreement, Embarq grants to Synacor during the Term, a
limited, non-exclusive, non-transferable, royalty-free right and license to: (i) transmit and
distribute individual copies of the Embarq Content, solely for purposes of distributing the Embarq
Content to Users located in the United States who are subscribers to Embarq’s internet services;
and (ii) use and utilize such Embarq and Embarq Provider trademarks, logos and other works which
are protected by intellectual property rights laws (the “Embarq Properties”) in connection with
the distribution of Content to Users pursuant to this Agreement. Synacor expressly agrees that it
shall not, and shall not permit any third party to, duplicate, copy, modify, amend, add to, delete
from or otherwise make any change whatsoever in the Embarq Content or otherwise violate any
intellectual property rights in the Embarq Content including but not limited to copyrights of
third parties therein.

(c) As to individual pieces of Content, the rights and licenses to use such Content as granted
herein shall expire upon the expiration or earlier termination of the agreement pursuant to which
distribution rights and license to such Content were obtained. Either party (the “Terminating
Party”) shall have the right to terminate this Agreement immediately as to any particular Content
upon notice to the other party: (i) if the Terminating Party reasonably believes the distribution
of such Content exposes it to potential legal liability; or (ii) in the event a Synacor Provider
or Embarq Provider ceases to operate a site, produce or distribute such Content.

7. Proprietary Rights.

(a) Subject to the rights and licenses granted in the Agreement, Synacor (and its licensors
including but not limited to the Synacor Providers) retains all rights, title and interest in and
to all copyrights, trademarks, trade names, logos, patents and other intellectual and proprietary
rights in and to the Synacor Content. No title to or ownership of any Synacor Content and/or any
part thereof is hereby transferred to Embarq or any third party. As between Embarq and Synacor,
Embarq agrees that Synacor is the sole owner of the System and all technology, software and other
intellectual property used by Synacor in connection with the performance of this Agreement and
that Embarq shall make no claims thereto. Embarq shall comply with all reasonable requests of
Synacor to protect the proprietary rights of Synacor and its licensors.

(b) Subject to the rights and licenses granted in the Agreement, Embarq (and its licensors
including but not limited to the Embarq Providers) retains all rights, title and interest in and
to all copyrights, trademarks, trade names, logos, patents and other intellectual and proprietary
rights in and to the Embarq Content. No title to or ownership of any Embarq Content and/or any
part thereof is hereby transferred to Synacor or any third party. Synacor shall comply with all
reasonable requests of Embarq to protect the proprietary rights of Embarq and its licensors.

(c) All licenses, rights, title, interest and intellectual property rights of any kind in and to
the Content are entirely owned by and reserved to the applicable Provider and may be used by the
Provider in such manner as the Provider may choose. Without limiting the foregoing, each party
hereby assigns to the applicable Provider all right, title and interest in the Content provided by
the Provider, together with the goodwill attaching thereto, that may inure to such party in
connection with this Agreement or from such party’s use of the Content hereunder. Each party
agrees to execute and deliver to the other party, as requested, any documents required to register
it as a registered user of any Content provided by the other Party and to follow any instructions
of the other party providing the Content as to the use of any Content. Each party agrees that it
will not and will not assist any third party to register or attempt to register any trademark,
trade name or other intellectual property right related to any Content or any derivation or
adaptation thereof or any work, symbol, design or mark which is so similar thereto as to suggest a
relationship with any Provider or affiliate of a Provider. Each party agrees that it will not, nor
will it assist any third party to, challenge the validity or ownership of any patent, copyright,
trademark, or other

34

 

intellectual property registration of any Content. If a party breaches any provision of this
section, such party agrees that it will, at its expense, immediately terminate the unauthorized
activity and promptly execute and deliver to the party that provided the Content, as requested,
such assignments and other documents as required to transfer to the Provider all rights to the
registrations, patents or applications involved.

8. Content Provider Requirements.

(a) Embarq agrees to utilize the User interfaces or other identification verification methods of
the System, as described in Section 3 of this Addendum, without modification, including but not
limited to framing or co-branding, unless Embarq has obtained the prior written consent of Synacor
to do otherwise.

(b) Embarq acknowledges and agrees that the look, feel, size and placement of any Synacor Content
on the User access web pages (and any change or modification thereof), as described in Section 2
of this Addendum, is subject to Synacor’s approval, which may include terms, conditions and
restrictions on the use of such Synacor Content or which may be withdrawn at any time.

(c) Consumer access to the Content will be included as part of a premium Embarq Internet service
package which may be offered as part of a premium tier of Internet service or at an additional
charge payable by the User. Embarq will not, at any time, permit access to the Synacor Content by
any person via the general Internet or other access method other than through Synacor’s System.

(d) Neither Synacor nor a Synacor Provider shall have any liability in the event a Synacor
Provider exercises its rights to terminate the rights and licenses to use Synacor Content as
provided in Section 6(c) of this Addendum.

(e) Embarq agrees that Synacor has the right to withdraw all Content upon termination of the
Agreement without liability after any applicable Transition Period and, after such Transition
Period, to provide for the seamless migration of any Users or subscribers to Synacor Content to
the Synacor Provider.

(f) Without the consent of the other Party, neither Party will: (i) send any interstitials, pop-up
windows, or other messages or files to the User during the time in which any the other Party’s
Content is displayed, or (ii) sell any advertising in, on, or related to the other Party’s
Content, including but not limited to banners, buttons, links, streaming audio or streaming video
advertisements. Neither Party may use the name, logo or any of the proprietary marks of the other
Party’s content Providers in any sales, advertising or marketing materials without the written
consent of the Party providing the content.

(g) To the extent a Provider has been given third party beneficiary rights in an Agreement with
Synacor, such Provider is deemed a third party beneficiary to the Agreement solely for purposes of
enforcement of the provisions of this Agreement relating to such Provider’s Content and that any
such Provider may, in its sole discretion, take any and all action, including but not limited to
commencing any legal action, to enforce its rights pursuant to this Agreement. Each such Provider
may audit the books and records of the parties solely relating to such Provider’s Content, upon
reasonable notice and at such Provider’s expense, not more frequently than quarterly during the
term of the Agreement and for a period of two years thereafter and to take extracts from and/or
make copies of such records.

9. Synacor Fees. The fees payable by Embarq to Synacor in connection with the provisions of this
Addendum are set forth in Exhibit 5 to the Contract Order.

35

 

Exhibit 5

Service Level Definition (SLD)

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	 	 	 
	1. Purpose
	 	 	38	 
	 
	 	 	 	 
	2. Scope of the Services
	 	 	38	 
	 
	 	 	 	 
	2.1 End User Software Maintenance
	 	 	38	 
	 
	 	 	 	 
	2.2 Service Hosting Maintenance
	 	 	38	 
	 
	 	 	 	 
	2.3 Service Monitoring
	 	 	38	 
	 
	 	 	 	 
	2.4 Guaranteed Service Availability
	 	 	38	 
	 
	 	 	 	 
	2.5 Service Support
	 	 	38	 
	 
	 	 	 	 
	2.6 Service After Hours Support
	 	 	39	 
	 
	 	 	 	 
	2.7 Service Training
	 	 	39	 
	 
	 	 	 	 
	2.8 Service Documentation
	 	 	39	 
	 
	 	 	 	 
	2.9 Service Change Management Reporting
	 	 	39	 
	 
	 	 	 	 
	2.10 Optional Services
	 	 	39	 
	 
	 	 	 	 
	3. Changes to SLD
	 	 	39	 
	 
	 	 	 	 
	4. Processes and Procedures Related to This SLD
	 	 	40	 
	 
	 	 	 	 
	Call Management Process
	 	 	40	 
	 
	 	 	 	 
	5. Metrics
	 	 	40	 
	 
	 	 	 	 
	Metrics Reporting
	 	 	40	 
	 
	 	 	 	 
	6. Support and Service Availability
	 	 	40	 
	 
	 	 	 	 
	6.1 Service Request
	 	 	40	 
	 
	 	 	 	 
	6.2 Problem Escalation
	 	 	40	 
	 
	 	 	 	 
	6.3 First Level Support
	 	 	40	 
	 
	 	 	 	 
	6.4 Levels of Support
	 	 	41	 
	 
	 	 	 	 
	6.5 Support Responsibilities
	 	 	41	 
	 
	 	 	 	 

36

 

	 	 	 	 	 
	 
	 	 	 	 
	6.6 Support Availability
	 	 	41	 
	 
	 	 	 	 
	6.7 Support Response Time
	 	 	41	 
	 
	 	 	 	 
	6.8 Support Request Severity Definitions
	 	 	43	 
	 
	 	 	 	 
	6.9 Service Availability
	 	 	44	 
	 
	 	 	 	 
	6.10 Service Unavailability
	 	 	45	 
	 
	 	 	 	 
	6.11 Service Unavailability compensation
	 	 	45	 

37

 

1. Purpose

The purpose of this Service Level Definition (SLD) is to describe an arrangement between the
Company and F-Secure on delivering technical services, at specific levels of support at an
agreed-upon cost.

2. Scope of the Services

The following services are provided by F-Secure to the Company in accordance with Security as a ServiceTM delivery. All services and related material are provided in English language unless
specifically otherwise stated or agreed.

2.1 End User Software Maintenance

Maintenance of End User Software of the Service consists of generic and necessary
maintenance minor Upgrades, Updates, troubleshooting, research, development and expenses
related to the process. Company is at all times entitled to request that the most updated End
User Software is made available to End User.

2.2 Service Hosting Maintenance

Maintenance of the Service hosting environment: This consists of infrastructure
establishment, administration, system upgrades, updates, configuration and hosting of services.
Preventative maintenance shall be performed as necessary within the limits of Service
Availability definitions, described in Section 6.9 of this SLD.

2.3 Service Monitoring

This consists of monitoring the Service according to the rules defined in this SLD
document. F-Secure will inform the Company on all unexpected changes to service levels. In case
F-Secure notices anything critical, it will inform the Company about possible effects to the
Service. F-Secure reports on all other recognized issues through regular reporting.

2.4 Guaranteed Service Availability

This consists of providing the availability of the Service according to the rules defined
in this SLD document. If F-Secure is unable to maintain the Service Availability at guaranteed
level, F-Secure shall compensate the Service Unavailability to the Company according to the
Service Unavailability Compensation table in Section 6.11.

2.5 Service Support

Service support for the Company with target response times, following any support request
submitted via F-Secure approved official communication channel, is handled within the limits of

38

 

Support Availability and Support Response Time definitions defined in Sections 6.6 — 6.8 of
this SLD document.

2.6 Service After Hours Support

All requests for support for non-business hours shall be deemed to be After-Hours Support.
F-Secure will provide After-Hours Support included in the Service to the Company, for the
severity A- and B- Level incidents as defined in Sections 6.6 — 6.8 of this SLD document.

2.7 Service Training

Training shall be provided in connection of each change of prime Service version number.
Training will be conducted in a maximum of two (2) training sessions / Service prime version
number. Key operators and selected personnel shall be trained. Retraining (classified as
additional training) shall be provided as needed. Training shall include End User Software
functionality and usage, special features, and support request generation. F-Secure training
department requires a minimum of 3 weeks notice from the Company prior to any training dates.
All reasonable requests for training will be provided at no additional cost to Embarq.

2.8 Service Documentation

Generic documentation of the Service will be provided for the Company. This Documentation
includes Frequently Asked Questions (FAQ), user instructions, customer service guide and other
instructions related to End User Software.

2.9 Service Change Management Reporting

New or changed processes, practices, or policies that affect the Company and that have an
impact on the Service shall be presented to the Company to understand, learn, and follow.

2.10 Optional Services

Except as otherwise provide in this Contract Order, additional services not set out herein
shall be subject to a separate fee and Parties’ separate mutual agreement.

3. Changes to SLD

This SLD will evolve over time, with additional knowledge of the Service
requirements, as well as the introduction of new services into the support portfolio
provided by F-Secure Corporation.

At Company’s option there will be an opportunity on a quarterly Quality Meeting basis to review and
suggest changes to this SLD subject to mutual agreement and understanding.

In the event F-Secure Corporation changes the SLD, F-Secure Corporation will notify Embarq sixty
days prior to implementation of such changes.

39

 

4. Processes and Procedures Related to This SLD

Call Management Process

F-Secure’s problem-ticket system will be used by all support team levels (where approval and
technical access has been granted and is available) to record and track all problem reports,
inquiries, or other types of requests received by support. This provides F-Secure with the ability
to provide metrics with regard to this SLD.

5. Metrics

Metrics Reporting

Regular reporting will be provided by F-Secure to the Company on available metrics as related
to Service performance. These reports are produced by F-Secure’s Service monitoring and
problem-ticket systems on Service Availability and Service Support Response times, which will in
detail measure F-Secure’s management performance against SLD targets and Service management
process.

F-Secure shall present reporting monthly on standard Quality Meetings between F-Secure and the
Company, unless otherwise mutually agreed. Tools for monitoring the status of the Service and
viewing the reports are made available to the Company via F-Secure Service Provider PartnerWEB.

F-Secure/Synacor will also provide monthly reporting on application downloads, activations and
utilization.

6. Support and Service Availability

6.1 Service Request

For the purposes of this SLD, a Service Request is defined as a request for support to
existing End User Software or a request for support that involves information of the Service.

6.2 Problem Escalation

For the purposes of this SLD, a Problem Escalation is defined as a request to fix a problem in
existing End User Software or report a problem in the functionality of the Service.

6.3 First Level Support

The Company shall be responsible for providing Level-1 support for the Service to End Users.
This consists of i) handling and responding to questions regarding technical support, ii) order
processing, iii) use of the End User Software and iv) accepting and responding to problem calls
from End Users relating to the Service.

End Users are not allowed to contact F-Secure’s support resources directly to report a problem.

40

 

6.4 Levels of Support

F-Secure will provide Level-2 and Level-3 support for the Service to the Company: This
consists of accepting and responding to Service Requests and Problem Escalations from
authorized representatives of the Company with regard to problems reported by End Users or
Company personnel that cannot be resolved by the Company and resolving reported problems as set
forth in this SLD. All problem escalation and requests must be logged through the designated
F-Secure help desks and in accordance to mutually agreed processes.

This is support provided by the appropriate F-Secure help desk Level-2 support when it
receives the request from the Company. This represents generalist professional support. If
this level of support cannot resolve the request, it is passed to F-Secure’s Level-3
support, which represents advanced support specialists.

6.5 Support Responsibilities

F-Secure will provide the necessary and mutually agreed requested documentation,
information, and knowledge capital to the Company prior to the start of support of End User
Software.

F-Secure will use its own appropriate help desk to provide Level-2 support, including creating
problem tickets and work orders and assigning responsibility to the appropriate Level-3
F-Secure resources.

F-Secure will use its own appropriate internal group to provide Level-3 server, network, and
infrastructure support services.

Once a support request has been submitted, F-Secure will make itself available to work with the
Company support resource assigned to the support request and will attempt to resolve the
problem on first instance of the support request.

The Company will log all information from F-Secure required to establish contact, document the
nature of the problem and provide all information required to open a support request, including
End User Software diagnostics.

6.6 Support Availability

F-Secure will receive and process support requests submitted via separately
designated official communication channels on the time zone of F-Secure’s office (as set
out on Section 1 of F-Secure’s Delivery Agreement with Synacor) as set forth in the table
below:

	 	 	 
	Help Desks	 	Hours
	Standard Coverage
	 	8:00 a.m. to 6:00 p.m. PT during normal business days
	After-Hours Coverage
	 	All other times

6.7 Support Response Time

The calculation of response time begins when the support request is logged in F-Secure
problem-ticketing system and ends when the technical support personnel submit the first human
response to the Company.

F-Secure will respond to submitted support requests as set forth in the table below:

41

 

	 	 	 	 	 
	Severity	 	Target Response Time	 	Roles and Responsibilities
	A- Level

	 	Target time for the first
response is within one (1)
hour
	 	•   Incident must be reported via telephone by the Company
representative who is authorized to make Problem
Escalations

	 
	 	 	 
	 

	 	 	 	•   F-Secure is working on the incident full time 24h/7d

	 
	 	 	 	 
	 

	 	 	 	•   The Company’s required personnel is present
and reachable 24h/7d

	 
	 	 	 	 
	 

	 	 	 	•   In the first response the reporting intervals of
problem solving, with the schedules for incident
handling, will be agreed upon together with the Company.

	 
	 	 	 	 
	B- Level

	 	Target time for the first
response is within twelve
(12) hours
	 	•   Incident must be reported via telephone by the Company
representative who is authorized to make Problem
Escalations

	 
	 	 	 
	 

	 	 	 	•   F-Secure is working fulltime on the incident during
local business hours

	 
	 	 	 	 
	 

	 	 	 	•   The Company’s required personnel is reachable during
local business hours (8:00 a.m.-6:00 p.m.)

	 
	 	 	 	 
	 

	 	 	 	•   In the first response the reporting intervals of
problem solving, with the schedules for incident
handling, will be agreed upon together with the Company.

	 
	 	 	 	 
	M- Level

	 	Target time for the first
response is within two (2)
consecutive business days
	 	•   Incident must be reported using F-Secure approved
official communication channel as agreed with the
Company.

42

 

6.8 Support Request Severity Definitions

F-Secure and the Company can jointly use their reasonable discretion to classify together a
reported problem into a different severity category during or after Service Request or Problem
Escalation, if needed.

A- Level:

Critical problem of immediate urgency that has direct and significant impact on minimum of
[*] % of the Company’s End Users using the Service.

	 	•	 	Event that significantly disrupts or threatens to disrupt the Service.
	 
	 	•	 	Event that significantly affects the availability of the Service.
	 
	 	•	 	Consistent or repeating degradation of performance that impairs the Service.
	 
	 	•	 	No workaround or resolution for the problem is available at the time.

B- Level:

Urgent problem that has an impact on several of the Company’s End Users using the Service.

	 	•	 	Event that disables certain functions of the Service.
	 
	 	•	 	Event that affects significant amount of End Users using the Service.
	 
	 	•	 	No workaround or resolution for the problem is available at the time.

Monitor- Level (M- Level):

General problems that are incidents or events and do not have a significant impact on the Service
or End Users using the Service.

	•	 	End User Software or Service malfunction or error occurring on End User environment.
	 
	•	 	Enhancement request for End User Software or Service.
	 
	•	 	Requests for general information of the Service.

 

	 	 	 
	*	 	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

43

 

6.9 Service Availability

F-Secure guaranteed availability of the Service hosting environment is [*] % in one (1)
Service Period as determined by the following formula:

Uptime
= (Total Time1 -Down Time2)/Total Time x 100%

	 	•	 	The Service Period is one (1) calendar month.
	 
	 	•	 	Total Time is the total count of the minutes of the Service Period.
	 
	 	•	 	Down Time is the total count of minutes of the period when the Service is unavailable.
	 
	 	•	 	Following Service break events are not to be calculated as Down Time or Service
Unavailability: Standard Service Window used or partly used, Inevitable Service Breaks,
everyday scheduled system backups, maintenance breaks that are shorter than 5 minutes and
occur maximum seven (7) times per week, breaks that are due to problems in the Internet
and/or breaks due to force majeure events, cf. annex 6 Clause 20.
	 
	 	•	 	Standard Service Window is the first Tuesday of the month starting from 23.00 and
ending 06.00 (CET +1). Standard Service Windows are used only when necessary and on each
service window End Users are not necessarily affected nor full time period of the
service window used. F-Secure will inform the Company five (5) business days before in
F-Secure Service Provider PartnerWEB about the Standard Service Window.
	 
	 	•	 	Occasionally F-Secure has to perform service breaks in other than Standard Service
Window periods. This is required to rectify a fault or deploy critical patches from
3rd party hardware or software manufacturers in order to maintain current
service levels of the Service. These breaks are called as Inevitable Service Breaks and
they can also occur outside Standard Service Windows and last all together maximum of
two (2) hours during the Service Period.

 

			
	1	 	Total Time = Available total time in minutes. Service period of the total elapsed
time, within a full calendar month, consisting of 24 hours per day, 60 minutes per hour.
	 
	2	 	Down Time = Down time in minutes. Down Time shall commence upon the Service
unavailability automatically detected by F-Secure Service monitoring systems or by a
Problem Escalation of the Company to F-Secure’s support of a fault condition which
prevents full or partly utilization of the Service and shall end when the Service is
again available to the Company’s and the fault ticket has been logged as complete and
reported to the Company by the servicing technician.

 

* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

44

 

6.10 Service Unavailability

If the Availability of the Service does not meet the targets set in this SLD during the
Service Period, F-Secure will compensate the unavailability to the Company, in form of a rebate
on the monthly Service price in the following periodical Service invoice as set below:

	 	•	 	The measurement period for the compensation is one (1) calendar month.
Measurements apply from the first full month following the implementation date.
	 
	 	•	 	Service compensation requests must be issued as Service quality reclamation notice in
writing within two (2) months following the affected measurement period.
	 
	 	•	 	F-Secure measurements, tests, logs and reports shall be the basis for calculating the
actual Service availability as further defined in this SLD. Company shall however
have the right to make its own measurements of the Service availability. The test
arrangements will be gone through in standard Quality Meetings, if necessary. If any
differences are found, a workgroup will be set up and the reasons for the differences
will be verified.
	 
	 	•	 	If the Company requests additional tests, and the tests show that the Service
availability meets the targets, F-Secure has the right to charge the costs of the
tests from the Company.
	 
	 	•	 	F-Secure will not give any guarantees concerning the availability of the Service for
the End User due to the uncertainties of the intermediate network and/or the
nonconformities of the End User environment.
	 
	 	•	 	F-Secure will not compensate any Service degradation if it has not been able to meet
the targets set on this SLD due to activities of the Company or not being directly
responsible of the degradation.

6.11 Service Unavailability compensation

The following compensations are used in case of the Unavailability of the Service hosting
environment or part of the Service:

[*]

 

*CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

45

 

Exhibit 6

Annex to F-Secure Service Delivery Agreement; Special Terms for F-Secure
Online Scanner.

	1.	 	PARTIES AND EFFECTIVE DATE
	 
	 	 	This annex of the Agreement constitutes a valid part of the Agreement between the
Parties specified in the first page of the Delivery Agreement. The terms and conditions
set out herein shall apply only to the product application designated in section 2
hereunder.
	 
	2.	 	OBJECT OF THE ANNEX
	 
	 	 	The following product application shall be the object of this annex
(hereinafter referred as “Tool”)

	 	•	 	F-Secure Online Scanner

	3.	 	GRANT OF RIGHTS
	 
	 	 	Subject to the terms of the Agreement and this annex, F-Secure hereby grants to the
Company under all applicable intellectual property rights a non-exclusive,
non-transferable, time-limited, royalty-free license to Tool to;

	 	i)	 	customize/modify the Tool strictly in accordance with, and only to the
extent set out in, official ‘F-Secure Online Scanner Customization Guide’ provided to the
Company
	 
	 	ii)	 	copy and make available the Tool to end users via Internet (either
from Company’s
server or via web link from F-Secure server), and
	 
	 	iii)	 	grant sublicenses to end users in its own name and account. Any use
of the Tool by
an end user shall be made subject to prior acceptance of the manufacturer’s end
user license terms embedded to the Tool.

	 
	 	F-Secure reserves all rights not
expressly granted to the Company or the end user of the Tool.

	4.	 	LIMITATION OF LICENSE
	 
	 	 	Except for separately agreed CD-Rom distribution, if any, the Tool may only be made
accessible to end user via such functionality in Company Internet page and Company shall
not deliver the Tool code in a form directly accessible to end users. Company is allowed
to use the Tool only for promotional and marketing purposes and is specifically
forbidden to do the following (and as further defined in F-Secure Online Scanner
Customization Guide):

	 	•	 	offer the Tool as an additional or billable service,
	 
	 	•	 	require registration of an end user prior to use of Tool,
	 
	 	•	 	bundle Tool with other software or services,
	 
	 	•	 	not to distribute the installation package of Tool.

	5.	 	SUPPORT AND MAINTENANCE
	 
	 	 	Company shall be responsible for providing end user support to end users using the Tool
and obtaining necessary skills and resources thereto (‘first level support’). F-Secure
shall provide second level support to the Company according to its general practices
similar to then current “F-Secure Standard Support” in relation to any technical problems
relating to the Tool. F-Secure may, but is under no obligation to, update, correct
defects and/or further develop the Tool according to its sole discretion. F-Secure shall
make available to the Company any Updates and Upgrades to the Tool.

	6.	 	DISCLAIMER OF WARRANTY

46

 

	 	 	In addition to the terms disclaiming warranty, set out in set out in F-Secure Security As A
Service general terms, section 14; F-Secure does not warrant that the Tool or any portion
thereof is error-free. The Tool is not designed to offer continuous protection. This
disclaimer of warranty constitutes an essential part of the license granted hereunder.
	 
	7.	 	TERMINATION
	 
	 	 	This annex is co-terminus with the Agreement. In addition to the termination provisions of
the Agreement, either Party may elect to terminate this annex upon thirty (30) days written
notice to the other Party. Upon termination of this annex, any license granted in accordance
to this annex shall immediately terminate and the Company agrees to destroy all copies of
the Tool and cease using any off the rights granted to it under this annex.
	 
	8.	 	LIMITATION OF LIABILITY
	 
	 	 	In addition to the terms on liability set out in set out in F-Secure Security As A Service
general terms, section 15; under no circumstances and under no legal theory, contract, or
otherwise, shall F-Secure or its supplier or resellers be liable to the Company or any other
person for any direct, indirect, special, incidental, or consequential damages of any
character including, without limitation, damages for loss of goodwill, work stoppage,
computer failure or malfunction, or any and all other commercial damages or losses even if
F-Secure and/or its suppliers have been informed of the possibility of such damages, or for
any claim by any other party.
	 
	9.	 	OTHER TERMS
	 
	 	 	Except to the extend otherwise stipulated in this annex, the terms and conditions set out
under clauses 1, 4-7, 9, 12.1, 14-25 set out in F-Secure Security As A Service general terms
annexed to the Agreement also govern this annex and license granted herein as if’ ‘the
references to Service’/’End User Software’ would pertain to ‘Tool’, as applicable. Terms or
clauses of the Agreement other than the above do not pertain to this annex.

F-Secure Security as a Service Delivery Agreement 05/2005© F-Secure 2005

47

 

Exhibit 7

F-SECURE® LICENSE TERMS

IMPORTANT — BEFORE INSTALLING OR USING THE SOFTWARE, CAREFULLY READ THE FOLLOWING LEGAL TERMS
(“TERMS”) FOR THE LICENSE OF F-SECURE SOFTWARE. BY SELECTING THE ACCEPTING OPTION BELOW, OR BY
INSTALLING, COPYING OR USING THE ACCOMPANYING SOFTWARE YOU (EITHER AN INDIVIDUAL OR A SINGLE
ENTITY) AGREE THAT YOU HAVE READ THESE TERMS, UNDERSTAND THEM AND AGREE TO BE LEGALLY BOUND BY
THEM. IF YOU DO NOT AGREE TO ALL OF THE TERMS, SELECT THE REJECTING OPTION AND DO NOT INSTALL,
USE OR COPY THE SOFTWARE.

These Terms cover any and all F-Secure programs licensed by you, including
related documentation and any update and upgrade of the programs
delivered to you under the purchased license or any related service
agreement as defined in the documentation and any copy of these items
(together the “Software”).

COMMERCIAL LICENSE

Subject to the payment of the applicable license fees and subject to the following terms and
conditions, you have been granted a non-exclusive, non-transferable right to use the specified
Software. F-Secure reserves any and all rights not expressly granted to you.

You may:

A) Install and use the Software only on as many units (typically handheld devices, personal
computers, servers or other hardware) as stated in
the F-Secure License Certificate, applicable invoice, product packaging or
agreement where these Terms have been appended. In case the
Software or its services are shared through a network or the Software is
used to protect traffic from viruses or other malicious code at web
and e-mail servers, firewalls or gateways, you must have a license for
either scanning capacity or for the total number of users whom the
Software provides services to. In such cases you may install the Software on
as many units as needed.

B) Create copies of the Software for installation and backup purposes only.

C) Extend the number of licenses by purchasing additional licenses.

You may not:

A) Install and use the Software against these Terms, the F-Secure License Certificate or other
related documentation.

B) Distribute copies of the Software to a third party, electronically transfer the Software to a
computer belonging to a third party, or permit a third party to copy the Software.

C) Modify, adapt, translate, rent, lease, resell, distribute or create derivative works based upon
the Software and/or related files (including but not limited to virus definition databases,
security news and descriptions) or any part thereof.

48

 

D) Decompile, reverse engineer, disassemble, or otherwise reduce the Software and/or related
files (including but not limited to virus definition databases, security news and
descriptions) to any human- perceivable form as the Software contains or may contain trade
secrets of F-Secure.

E) Use the documentation for any purpose other than to support your use of the Software. Please
contact F-Secure directly if you are
interested in any other rights to the Software other than those granted in these Terms.

F) Disclose the license authorization code provided for the program installation (included but
not limited to key code, subscription number and registration key) to any third party.

G) Use the Software or any portion thereof to implement any product or service to operate
on or in connection with the Software for any other purpose than granted herein.

H) Use the Software to publish, distribute and/or obtain software or content (i) not specifically
related to F-Secure products and/or services and (ii) not security-related (or any updates to any
such software or content).

EVALUATION LICENSE

An Evaluation License is applicable when you download or install an evaluation version of the
Software or you are granted a time limited, non-exclusive and non-transferable license by F-Secure
or its resellers for evaluation purposes. The Software is licensed to you for the sole purpose of
evaluating the Software and only for a specified evaluation period, which will begin on the date
that the Software is first downloaded by or delivered to you. After the specified time period, you
must either purchase the Software license from F-Secure or its reseller, or destroy and stop using
the
Software. If you purchase the Software before the expiration of the evaluation time and register
the Software, you have a valid license and you do not
need to destroy the Software. F-Secure shall have no obligation to provide support or maintenance
services for Evaluation Licenses. For the avoidance of doubt, the Evaluation License is also
subject to restrictions set out above as items A-H. F-Secure reserves any and all rights not
expressly granted to you.

NON-COMMERCIAL LICENSE

A Non-Commercial License is applicable when you download or install a free version of a detection
and/or removal tool made available to you by F-Secure or its reseller. Such Software is licensed to
you only for a limited period as a non-exclusive, non-transferable license and is intended only as
a supplementary tool (not for ongoing content security purposes). F-Secure reserves the right to
discontinue the ability to use this type of Software at
any time and is under no obligation to provide support or maintenance services for Non-Commercial
Licenses. For the avoidance of doubt, the Non-Commercial License is also subject to restrictions
set out above as items A-H. F-Secure reserves any and all rights not expressly granted to you.

TITLE

49

 

Title, ownership rights, and intellectual property rights in the Software
shall remain those of F-Secure, and/or its suppliers. The Software is
protected
by copyright laws and international copyright and other intellectual
property treaties.

LIMITED WARRANTY AND DISCLAIMERS

Limited Warranty on Media. F-Secure warrants the physical media produced by F-Secure on which the
Software is recorded to be free from defect in material and workmanship under normal use for 30
days from the date of delivery. F-Secure does not give any warranties on media in case the Software
is delivered bundled in a third party device. Any implied warranties on the media, including
implied warranties of merchantability and fitness for a particular purpose, are limited in duration
to 30 days from the date of delivery. F-Secure will, at its option, replace the media or refund
the purchase price of the media. F-Secure shall have no responsibility to replace or refund the
purchase price of media, which is damaged by accident, abuse, or misapplication.

50

 

Disclaimer of Warranty on Software. THE SOFTWARE IS PROVIDED “AS IS”,
WITHOUT WARRANTY OF ANY KIND. F-SECURE, ITS
LICENSEES AND DISTRIBUTORS EXPRESSLY DISCLAIM ALL IMPLIED WARRANTIES,
INCLUDING BUT NOT LIMITED TO
IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE.

F-Secure, its licensees and distributors do not guarantee the Software or
related documentation in terms of their correctness, accuracy, reliability,
or
otherwise. You assume the entire risk as to the results and performance of
the Software and related documentation.

Complete Statement of Warranty. The limited warranties provided in the preceding paragraphs are the
only warranties of any kind that are made by F-Secure on the Software. No oral or written
information or advice given by F-Secure, its dealers, distributors, agents, or employees shall
create a warranty or in any way increase the scope of the foregoing limited warranty, and you may
not rely on any such information or advice. Some states do not allow the exclusion of implied
warranties, so the above exclusion may not apply to you, and you may have other rights, which may
vary from state to state.

Limitation of Liability. IN NO EVENT SHALL F-SECURE, ITS LICENSEES, ITS
DISTRIBUTORS OR ITS SUPPLIERS BE LIABLE TO
YOU FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES,
INCLUDING, BUT NOT LIMITED TO, LOSS OF
REVENUE OR PROFIT, LOST OR DAMAGED DATA OR OTHER COMMERCIAL OR ECONOMIC
LOSS, ARISING OUT OF THE USE OF,
OR INABILITY TO USE, THE SOFTWARE OR RELATED DOCUMENTATION, EVEN IF F-SECURE
HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. Some states do not allow the limitation or
exclusion of liability for incidental or consequential damages so
the above limitation or exclusion may not apply to you. F-SECURE, ITS
LICENSEES, DISTRIBUTORS AND SUPPLIERS SHALL IN NO
EVENT BE LIABLE FOR ANY DAMAGES ARISING FROM PERFORMANCE OR NON-PERFORMANCE
OF THE SOFTWARE. OUR
MAXIMUM LIABILITY TO YOU FOR ACTUAL DAMAGES FOR ANY CAUSE WHATSOEVER SHALL
IN NO EVENT EXCEED THE
AMOUNT PAID BY YOU FOR THE SOFTWARE. Nothing contained in these License
Terms shall prejudice the statutory rights of any party
dealing as a consumer. F-Secure is acting on behalf of its employees,
licensees, distributors and licensors or subsidiaries for the purpose of
disclaiming, excluding, and/or restricting obligations, warranties, and
liability as provided in this clause, but in no other respects and for no
other
purpose.

EXPORT RESTRICTIONS (EXCLUSIVELY FOR CRYPTOGRAPHIC SOFTWARE)

1. If the Software is shipped or otherwise distributed to you from the United States of America:
You acknowledge that the Software and the maintenance and support services including without
limitation technical services and technical data (e.g., manuals, blueprints, plans, diagrams,
models, formulae, tables, engineering designs and specifications and instructions written or
recorded) and any other such technical services and

51

 

technical data (“the Services”) are of U.S. origin for purposes of U.S. export control laws,
regulations, administrative acts or Executive Orders, and any amendments thereof, including without
limitation the Export Administration Act of 1979, as amended (the “Act”), and the regulations
promulgated thereunder (the “U.S. Export Control Laws”). You agree to comply with all applicable
U.S. Export Control Laws and any
applicable international laws and regulations that apply to the Software and to the Services,
including without limitation the Act as well as end-user, end-use and destination restrictions
issued by the U.S. and other governments.

2. If the Software is shipped or otherwise distributed to you from a country other than the United
States of America: You agree to comply with the local regulations regarding exporting and/or using
cryptographic software.

In all cases, F-Secure will not be liable for the illegal export and/or use of its cryptographic
software by you.

U.S. GOVERNMENT RIGHTS

If the Software is licensed for or on behalf of the United States of America, its agencies and/or
instrumentalities (“U.S. Government”) pursuant to
solicitations issued on or after December 1, 1995, the Software is provided with the commercial
rights and restrictions described elsewhere herein. If the Software is licensed for or on behalf of
the U.S. Government pursuant to solicitations issued prior to December 1, 1995, the Software is
provided with RESTRICTED RIGHTS as provided for in FAR, 48 CFR 52.227-14 (JUNE 1987) or DFAR, 48
CFR 252.227-7013 (OCT 1988), as applicable.

HIGH RISK ACTIVITIES

The Software is not fault-tolerant unless expressly stated in product documentation and is not
designed, manufactured or intended for use or resale as
control equipment in hazardous environments requiring fail-safe performance, such as in the
operation of nuclear facilities, aircraft navigation or communication systems, air traffic control,
direct life support machines, or weapons systems, in which the failure of the Software could lead
directly to death, personal injury, or severe physical or environmental damage (“High Risk
Activities”). F-Secure and its suppliers specifically disclaim any express or implied warranty of
fitness for High Risk Activities.

GRANT TO USE

You agree and acknowledge that the Software may send information related to the use of the Software
by you and the findings of such use to F-Secure via Internet in obfuscated/encrypted form. You
grant F-Secure the right to use and display statistical security information, other security
related content or material in a non-personally identifiable form and license/device information
submitted by the Software, or by you through the Software, to F-Secure for customer registry,
security research and solution development purposes.

GENERAL

52

 

The license will terminate immediately without notice if you are in breach of any of its terms and
conditions. You shall not be entitled to a refund from F-Secure or any of its resellers as a result
of termination. The terms and conditions concerning confidentiality and restrictions on use shall
continue in force even after any termination.

F-Secure may revise these Terms at any time and the revised terms shall automatically apply to the
corresponding versions of the Software distributed with the revised terms. If any part of these
Terms is found void and unenforceable, it will not affect the validity of rest of the Terms, which
shall remain valid and enforceable according to its terms. In case of controversy or inconsistency
between translations of these Terms to other languages, the English version issued by F-Secure
shall prevail.

These Terms shall be governed under the Laws of Finland without regard to conflict of laws rules
and principles and without regard to the United Nations Convention of Contracts for the
International Sales of Goods. The courts of Finland shall have the exclusive jurisdiction and venue
to adjudicate any dispute arising out of these Terms. Notwithstanding the foregoing, in the case of
purchases made within or on behalf of licensees residing within or operating under the laws of the
United States the governing law of these Terms shall be the laws of the State of California without
regard to conflict of laws rules and principles and without regard to the United Nations Convention
of Contracts for the International Sales of Goods. The exclusive jurisdiction and venue to
adjudicate any dispute arising out of these License Terms shall be of the federal and state courts
of California.

If you have any questions concerning these Terms, or you would like to contact F-Secure for any
other reason, please write: F-Secure Corporation, PL24, FI-00181 Helsinki, Finland, fax: +358 9
2520 5001, e-mail: helsinki@f-secure.com or call: +358 9 2520 0700

August 2006, F-Secure Corporation

53

 

Exhibit 8

SERVICE LEVEL AGREEMENT

I. General

Synacor shall provide the agreed to service levels seven (7) days a week, twenty-four (24)
hours a day, consisting of monitoring, notification, repair of service outages and maintenance,
as set forth in this SLA.

It is expected that the evaluation of Synacor’s performance against this SLA will be evaluated
on a monthly basis beginning ninety (90) days from the date of activation of this SLA.

This agreement excludes events resulting from failures of Content Providers’ hosting and/or
delivery systems, acts of God, war, acts by civil or military authorities, energy shortages, or
other causes beyond Synacor’s control, whether or not similar to the foregoing.

Embarq should direct all requests for support to Synacor’s Technical Support Group. To reach
Synacor’s Technical Support by phone dial 1-866-5358286 or by e-mail at tss@synacor.com

II. Monitoring

In an effort to detect potential problems before they impact the availability and performance
of the system or services, Synacor monitors the status of the systems using both automated and
manual tools employed in its 24 by 7 network operations center (NOC). noc@synacor.com
1-800-716-8347

This monitoring includes but is not limited to:

System availability, Service availability, System load and performance, Network
availability and performance, System Usage

III. System Availability

A. “System Availability” means that the Synacor Services and any software application running
on the servers that support Embarq are fully functional with [*] average uptime, as measured
continuously on a calendar month basis. For these purposes, fully functional means that the
environment and links are continuously operable, available and responsive to Embarq User
without delay or malfunction. System Availability excludes: (i) downtime attributable to
Scheduled Maintenance (as defined herein); (ii) the inability of Users to access Content as a
result of such Users’ Internet/network connection; (iii) impediments affecting the path (route)
traveled in accessing Synacor’s systems except for those facilities owned, operated or
maintained by Synacor or by a third party on behalf of Synacor; and (iv) the inability of
Synacor Providers and Embarq Sourced Content Providers to update or deliver Content, provided
that the inability is not due, in whole or in part, to Synacor.

B. Embarq shall have the right to separately measure System Availability in order to ascertain
and report System Availability deficiencies provided that such measuring does not adversely
affect System availability. In the event of discrepancies between Synacor’s testing results and
those of Embarq, the Parties shall establish a workgroup of individuals from both Parties to
ascertain the source of and reason for the discrepancy, to identify the correct measurements,
resolve in good faith any issues pertaining to the testing methods, and if applicable, to
determine whether a remedy is due to Embarq.

C. System Availability Credits — The System Availability credits set forth below will be
applied to Embarq’s account for each instance of Synacor’s failure to meet the required System
Availability of [*] during any calendar month during the Term of this Agreement. To the
extent possible, the credits will be applied during the calendar month in which such failure
occurs and shall be detailed as a separate line item on the invoice:

	 	a.	 	[*]

 

*CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

54

 

\

	 	 	 	[*]

	 	b.	 	[*]
	 
	 	c.	 	[*]

IV. Data Integrity and Retention

A. Data Integrity — Synacor employs sophisticated RAID techniques to ensure the integrity of the
data on its servers; the data is written to two disks simultaneously to prevent data loss in the
event of hardware failure. Synacor performs routine server backups for disaster recovery purposes
only. Server backup scope and scheduling is at Synacor’s sole discretion. Synacor shall not
perform backup or restore of the data upon your request unless such backup is provided as a
service under your purchase agreement. In addition, Synacor will maintain the highest level of
data security and confidentiality as is commercially reasonable in this industry.

B. Data Retention — [*]

V. Security

Synacor’s Security Department maintains the security, stability and integrity of Synacor’s
systems and networks as well as to ensure proper conduct by the Users.

System Intrusion — In the event of a system intrusion by a “cracker” or “hacker”, the affected
party(ies) will be notified and a solution will be implemented. Notification will occur upon
identification of intrusion and the investigation of such identifications by Synacor’

Network Security — Synacor maintains network firewalls and intrusion detection devices to prevent
unauthorized access to the network infrastructure and systems. Network attacks such as Denial-of-Service attacks are logged and notification will occur when such attacks are verified.

VI. Scheduled Maintenance Windows

 

*CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

55

 

Synacor has reserved a two (2) hour window from 3:00am — 5:00am EST every Monday morning for
weekly maintenance, should the need for such maintenance arise. In the event that this window
will be needed in a given week, Synacor will notify the Embarq no less than two business days
prior to the window. If it is determined during the window that the scheduled maintenance will
run over the two (2) hour window, the Embarq will be notified immediately and receive regular
updates until the period is complete. During these scheduled maintenance periods, the system and
services may be unavailable to Embarq and Embarq’s Users. Scheduled Maintenance Windows are not
counted against System Availability percentages.

VII. Emergency Maintenance Notification

In the event that emergency maintenance is required, during which time the system and services
will be unavailable to Embarq and Embarq’s Users. Synacor will notify Embarq during this window
via email to a designated distribution list of Embarq employees. Emergency maintenance windows
are counted against System Availability percentages.

VIII. Incident Management

Synacor’s Embarq Support Group will be responsible for the control and management of incident
calls and their assignment of priority and escalation to resources within Synacor in their sole
and absolute discretion.

When analyzing a case, it is important that the client understand that the Embarq Support Group
will expect the partner or the Users to aid in the analysis by providing any information and
performing any actions or tasks requested by the analyst. The client who is not willing to assist
the analyst must understand that the case may take longer to solve and will not be included in
the measurement of this service level agreement.

The following priority allocations will apply:

Priority 1 —.

These cases are defined as a Synacor system condition where [*]% or more of the User population is
affected in their ability to access services as a result of outage across a service location,
and/or the Synacor system that supports new data subscriber activations is unresponsive.

Time Frame — Response to the client and efforts to resolve the problem will occur within
fifteen (15) to thirty (30) minutes of identification or receipt of notification

Follow-up — Provide updates to the client at appropriate intervals until problem is
resolved.

Priority
2 — These cases are defined as a Synacor system condition
where less than [*]%
of the User population is affected in their ability to access services.

Time Frame — Response to the client and efforts to resolve the problem will occur within four (4)
hours of identification or receipt of notification

Follow-up — Provide updates to the client every four (4) hours until problem is resolved.

Priority 3 — These cases are problems other than those meeting the specifications of Priority 1
or Priority 2.

Time Frame — Response to the client within twenty-four (24) hours of identification or
receipt of notification

Follow-up — Provide updates to the client at appropriate intervals until problem is
resolved.

Upon the identification of a system event, Synacor will make every commercially
reasonable effort to correct the system or service event if the most expeditious manner
possible.

IX. Customer Care Escalations

 

	 	 	 
	*	 	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

56

 

Escalation and Tracking Process. Synacor will provide and track trouble-call escalations from
Embarq’s Technical Support Group. Synacor Customer Service will utilize two (2) escalation methods
from Embarq:

(a) E-mail: Embarq will e-mail Synacor its request for support: tss@synacor.com
A Synacor customer agent will respond to the question with the answer or will issue a Tracking
number to each matter that is escalated (as set forth above). The Synacor customer agent will
then notify the Embarq escalation group with the appropriate timeline for any escalation to be
resolved.

(b) Phone: Embarq can reach Synacor’s Embarq Care group 24 hours per day, 7 days per week by
calling [*]. In the event that a support issue requires Priority 1 treatment, or is
otherwise better addressed by a telephone call rather than e-mail, Embarq may bypass
Escalation Level 1 (as defined below) support and apply Escalation Level 3 support and
initiate a call directly to a Synacor support specialist. Such calls will be placed solely
from the Embarq escalation group person(s) who is/are responsible for initiating Level 3
support requests. Following each such call, a Embarq escalation Level 3 support person will
send an e-mail confirming all the technical details regarding the issue. Synacor will then
follow the same process of tracking such issues via the e-mail Tracking system. Synacor will
provide prior written notice to Embarq of any change in the telephone contact number.

The escalation process begins with the troubleshooting, diagnosis, and resolution processes. As
Embarq’s service team receives alerts they will be prioritized by Synacor based on the gravity and
urgency of the underlying problem and assigned to a Synacor support technician in accordance with
the Synacor Escalation Response Times and the Issue Severity tables set forth below.

Each time Synacor escalates an issue to the next level, Synacor shall send an email confirming
escalation. The email shall go to Embarq’s designated contact for the applicable Level.

Escalation Levels

Level 1 — Email

     Technical Support Agent: Synacor Technical Support Agents available 24 hours per
day, 7 days per week.

Level 2 — Voice

     Support Specialist: If Level 1 issue is not resolved within 4 hours from the
time the issue is reported to Level 1, then Synacor will automatically escalate to
Level 2.

Level 3

     Support Management: If Level 2 issue is not resolved within 2 hours from
the time the issue is escalated to Level 2, then Synacor will automatically escalate
to Level 3.

Level 4

     Account Manager: If Level 3 issue not resolved within 1 hour from the time the issue is escalated to Level 3, then Synacor will automatically escalate to Level
4.

Level 5

     Product Management: If Level 4 issue not resolved within thirty minutes
from the time the issue is escalated to Level 4, then Synacor will automatically
escalate to Level 5.

Level 6

     Vice President: If Level 5 issue not resolved within thirty minutes from the
time the issue is escalated to Level 5, then Synacor will automatically escalate to
Level 6.

 

*CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

57

 

Synacor will maintain a table with contact information for the Level 1 — Level 6 contacts and
will be responsible for keeping it current. The contacts and response times will be
distributed to Embarq and/or provided in Embarq’s administration information section located
at admin.Synacor.com.

X Reporting

Synacor will provide to Embarq, through a web-based interface, any and all User reporting that
Synacor tracks following a schedule mutually agreed upon by the Parties. Furthermore, Synacor will
use its best efforts to provide, through the same web-based interface, access to the following
reporting tools, to the extent any of the following data points are not normally tracked by
Synacor. All data points below will be differentiated between Business and Consumer Users:

SUBSCRIBER DATA

	 	1.	 	Number of Registered Users
	 
	 	2.	 	Number of Active Users by Usage Level (Daily, Monthly, Quarterly)
	 
	 	3.	 	User Cancellations

MONTHLY USAGE DATA

	 	1.	 	Unique Users accessing Premium Services
	 
	 	2.	 	Unique Users accessing Portal
	 
	 	3.	 	Hits/redirects to each Content Provider

EMAIL USAGE DATA

	 	1.	 	Number of Users (Primary and Secondary)
	 
	 	2.	 	Storage Capacity Used
	 
	 	3.	 	POP vs. Webmail

	 
	 	4.	 	Anti-spam Statistics
	 
	 	5.	 	Total Unread & Deleted Messages

WEB SEARCH DATA

	 	1.	 	Total searches
	 
	 	2.	 	Top 100 URLs searched (report will be provided upon request)

ONLINE SECURITY DATA

	 	1.	 	Activations
	 
	 	2.	 	Downloads
	 
	 	3.	 	Utilization

Such reporting tools can be enhanced as mutually agreed at Synacor’s standard professional
services rate.

58

 

Exhibit 9

SEARCH REVENUE SHARING ADDENDUM

TO

SYNACOR MASTER SERVICES AGREEMENT

1. Definition of Search Services and Selection of Search Services Provider. Synacor shall
provide services that enable consumers to receive descriptions and links associated with search
results from search boxes (“Search Services”) placed within the Embarq Portal(s) and other Embarq
websites (the “Sites”) through its agreement with a Search Services provider (“Search Services
Provider”). [*].

     a. Operation of Search Services. Each time a User enters a search request in a search
box (a “Search Query”) Synacor shall return to such User a set of up to ten (10) search results
(each such set being referred to as a “Search Results Set”) and additional paid links (“Sponsored
Links” or “AFS Ads”) as agreed to by the Parties.

     b. Hosting
and Control. At all times during the C.O. Term Synacor shall (a) host and
maintain any and all pages that comprise the Sites; (b) maintain complete technical and editorial
control of the Sites; and (c) act as the intermediary for all transmissions between Search Services
Provider and the Sites.

     c. Context Sensitive Advertising. The Parties may agree to provide context sensitive
advertising (“Adsense for Content Ads” or “AFC Ads”) within the Embarq Portal(s) or other Embarq
controlled websites.

2. Disclaimers. Embarq understands and agrees that Search Services Provider shall not be
liable for any damages, whether direct, indirect, incidental or consequential, arising from the
Site’s access to or use of the Search Services;

3. No Warranties. Embarq understands and agrees that Search Services Provider makes no warranties,
express or implied, with respect to the Search Services, including without limitation, warranties
for merchantability, fitness for a particular purpose, and non-infringement;

4. Embarq Not Third Party Beneficiary. Embarq expressly acknowledges and agrees that Embarq
is not a third party beneficiary under any agreement between Synacor and Search Services Provider.

5. Fees and Payment Terms.

     a. AdSense for Search. Subject to the terms and conditions of this Addendum, for each month
during the Services Term Embarq shall receive the Applicable Percentage (as defined below) of Net
AFS Revenues attributable to such month.

     b. AdSense for Content. Subject to the terms and conditions of this Addendum, for
each month during the Services Term Embarq shall receive the Applicable Percentage of Net AFC
Revenues attributable to such month.

     c. Ad Revenues; Applicable Percentage; Applicable Deduction.

     i. “Net AFS Revenues” means (i) Ad Revenues derived from clicks on AFS Ads
(excluding Non-Qualifying Ads as defined below) minus (ii) the Applicable AFS Deduction.

     ii. “Net AFC Revenues” means (i) Ad Revenues derived from clicks on AFC Ads
(excluding Non-Qualifying Ads as defined below) minus (ii) the Applicable AFC Deduction.

 

*CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

59

 

     iii. “Ad Revenues” means gross ad revenues minus agency fees, referral fees, costs
related to third party advertising service providers, and discounts.

     iv. “Applicable Percentage” with respect to any calendar month during the Services
Term shall be [*].

Example:

[*]

     v. “Applicable AFS Deduction” in any calendar month during the Initial Term means
[*].

     vi. “Applicable AFC Deduction” in any calendar month during the Initial Term means
[*].

     vii. Notwithstanding any of the foregoing under this Section, Synacor shall not
be liable for payment in connection with (i) any amounts which result from invalid queries,
or invalid impressions of (or clicks on) ads, generated by any person, bot, automated
program or similar device, including, without limitation, through any fraudulent act, as
reasonably determined by Synacor; and (ii) ads that advertise Search Services Provider
products or services (collectively, “Non-Qualifying Ads”). The number of queries, and
impressions of and clicks on ads, as reported by Search Services Provider, shall be the
number used in calculating payments hereunder.

     e. Payment Terms. All payments due a Party shall be made by such other Party within
forty-Five (45) days after the end of each applicable quarter in which the applicable AFC Ads,
AFS Ads, or Search Results Sets were displayed. All payments shall be made in full in United
States Dollars.

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

60

 

Exhibit 10

Embarq Advertising and Content Guidelines

The following types of Content will not be offered without written consent of Embarq:

Mature and Adult Entertainment. This type of content can generate considerable
controversy, even if legal, non-pornographic, and widely available in print format,
including such things as frank relationship and sex advice, and suggestive or prurient
images and stories.

Violent Games and Video. The effect of violence on children is much debated, and
controversy can be created if minors are allowed to access violent content without
parental approval.

Gambling and Sweepstakes. Gambling is illegal in many states, and closely
regulated in all states. Similarly, sweepstakes are subject to complex rules and are
frequently scrutinized closely by consumer protection and law enforcement officials.

Services Targeted to the Disadvantaged. When it first became widely available,
900 pay-per-call service was used to sell a variety of goods and services that
allegedly were not provided or were misrepresented. (For example, for a $40 charge on
his telephone bill, a caller received an application for a debit card instead of the
promised credit card.)

Services Without Value to Customers. Examples include psychic advice and other
personal services that many consumers and law enforcement agencies believe are harmful
or misleading.

Illegal, Unethical, Brand-Diminishing Content. Embarq reserves the right to
remove or disapprove any Content which it deems in its sole discretion as unethical or
conflicting with “The Embarq Principles of Business Conduct” or which tends to attract
governmental scrutiny, increased legal liability or damage to Embarq’s brand.

Competitive Services and Contractual Obligations. Embarq reserves to right to remove or
disapprove any Content which it deems competitive to Embarq Services or which conflict with any
existing contractual obligation Embarq may have. If Embarq invokes this content limitation, it
will provide an explanation to Synacor detailing, subject to confidentiality agreements, the
reason for removal or disapproval.

61

 

Exhibit 11

Illustration of Carriage Fees

	 	 	 	 	 
	[*]	 	[*]	 	[*]

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

62

 

Exhibit 12

Roles and Responsibilities

	 	 	 
	Synacor	 	Embarq
	Integration and Testing

	 	Integration and Testing
	 
	 	 
	•   Mutually develop integrated
systems and APIs to support new
account registrations, account
information updates, Premium
Service Offerings,
account/service cancellations,
and Data Technician Support
Tools.

	 	•   Mutually develop integrated
systems and APIs to support
new account registrations,
account information updates,
Premium Service offerings,
account/service cancellations,
and Data Technician support
tools.

	•   Development necessary to
integrate EMBARQ
E-Commerce website functionality
into Portal for both residential
and business customer
applications.

	 	•   Development necessary to
integrate EMBARQ
E-Commerce website
functionality into Portal for
both residential and business
customer applications.

	•   Beta testing and system
integration certification

	 	•   Beta testing and system
integration certification

	•   Provide Embarq with escalation
contacts and protocols.

	 	•   Provide Synacor with escalation
contacts and protocols.

	 
	 	 
	Synacor agrees to participate in the
migration of User accounts, User data
and mailbox data from Earthlink to
Synacor. The details of the obligation
have yet to be determined; however, the
following efforts will be considered to
be within the scope of this agreement if
they are deemed necessary:
	 	 
	•   Development of API’s to allow
Earthlink or Embarq to access
details within Synacor’s
database, such as the migration
status of any account
	 	 
	•   Development of processes for
communication with Embarq’s
systems to provide functionality
such as user deactivation and
	 	 

63

 

	 	 	 
	Synacor	 	Embarq
	   communication of migration
status
	 	 
	•   Development of processes for
communication with Earthlink’s
systems to provide functionality
such as email import,
addressbook import, forward
filter creation, account
deactivation, account status
messages, and related data
transactions
	 	 
	•   Creation of a set of pages that
act as a mailbox migration
wizard for customers to utilize
for self-migration
	 	 
	•   Ingestion of user/password data
from batch files or another
mechanism, for use in setting up
accounts
	 	 
	•   Import of mailbox data from
physical devices such as
removable drives or tapes
	 	 
	•   Technical consulting with
Embarq and Earthlink as needed
to facilitate the definition and
execution of the migration
process
	 	 
	 
	 	 
	•   Account Provisioning, Software,
and Billing

	 	CPE, Installation, and Billing
	 
	 	 
	•   New Account Creation
(including username / password,
email account, and Portal log-in
capability) Email software

•   Security software

•   Provide Credit Card billing for mutually agreed upon Synacor Premium Services offered through the Portal.
	 	•   Provide CPE

•   Provide provisioning software,
incorporating Synacor and
Embarq account installation
functionality

•   Provide billing for CPE

•   Provide billing for HSI Service

•   Provide billing for mutually
agreed upon Synacor Premium
Services offered through the Portal

64

 

	 	 	 
	Synacor	 	Embarq
	ISP Services:

	 	ISP Services
	 
	 	 
	Synacor will provide services consistent with the services it provides its other broadband service subscribers, as they may change from time to time, which
currently includes:
	 	•   Connection/authentication to
the Internet

•    DHCP / IP leasing

	 
	 	 
	•   Email boxes, POP and Web based
	 	 
	•   Anti-spam software
	 	 
	•   Anti-popup software
	 	 
	•   Anti-spyware software
	 	 
	•   Anti-virus software
	 	 
	•   Anti-“phishing” software
	 	 
	•   Toolbar
	 	 
	•   Parental Controls
	 	 
	•   Personal firewall

	 	 
	•   Customer Support
 

	 	Customer Support
	•   On-line functionality via the
Portal for EMBARQ customer
account ‘self-help’ such as:
add/delete/change email
accounts, password reset
functionality, Portal tutorial,
account profile updates, and
other general self-help
information as mutually agreed
upon during Portal Design.

•   Training and documentation for
EMBARQ Sales and Care
Representatives.

•   Training and documentation for
EMBARQ Tier 0, 1, and 2 Data
Technicians providing support to
EMBARQ customers related to
the Portal, Email, Premium
Products and Internet Security
Software services.

•   On-Line Support Tools for
EMBARQ Data Technicians to
utilize in Tier 1 and Tier 2

	 	•   Training and internal
documentation for EMBARQ
customer care representatives
related to HSI sales, including
Portal, Security, Email, and
Premium/Value Added
Services.

•   Training and internal
documentation related to Tiers
0,1, and 2 Technical Support.

•   Customer inquiries related to
EMBARQ billing.

•   Customer service
upgrades/downgrades

•   Tier 0, 1, and 2 Support as
defined in the following
Customer Technical Support
Matrix.

65

 

	 	 	 
	Synacor	 	Embarq
	     support services (see section
7.19 of this contract order).

•    Tier 3 Support as defined in
the following Customer Technical
Support Matrix.
	 	 

Customer
Technical Support Matrix

	 	 	 	 	 
	 	 	EMBARQ	 	 
	Customer Care Level	 	Responsibilities	 	Synacor Responsibilities
	 
	 	 	 	 
	Tier 0

	 	Tier 0
	 	Tier 0
	•    Tier 0 consists of
“ecare” in the form of
Frequently Asked
Questions (FAQs) that
are accessed via Service
Subscriber’s
www
access

•    Service Subscriber must
have basic connectivity
to access Tier 0
services

•    FAQs will include
contact information for
Service Subscribers
(phone numbers, etc.)

	 	•    Prepare FAQs that address Service Subscriber questions
regarding the following:

-    EMBARQ Billing Practices

-    General EMBARQ service questions

-    General Connectivity questions

-    General Internet questions

-    General Browser questions

-    HSI Value Added Services — EMBARQ

-    HSI Speed Options

•    Provide and update,
pertinent Web addresses,
CHAT links, and phone
numbers for Service
Subscribers to use for
additional questions.

	 	•    Prepare FAQs that

address Service
Subscriber questions
regarding the
following:

-    Portal

Customization/Tutorial

-    Internet Security

-    Email

-    Search Function

-    Premium Services

•    Provide Self-Help

Functionality on the
Portal
such as:

-    Username Updates

-    Password Resets

-    Add/Delete Emailboxes

-    General Account Profile
Updates

-    Portal Tutorial

-    Portal Customization

66

 

	 	 	 	 	 
	 	 	EMBARQ	 	 
	Customer Care Level	 	Responsibilities	 	Synacor Responsibilities
	 
	 	 	 	 
	Tiers 1 and 2

	 	Tiers 1 and 2
	 	Tiers 1 and 2
	
•   Tier 1 and 2 Support
consists of one-to-one
interaction between a
Service Subscriber and a
Customer Service
Representative via
email,
CHAT or
telephone.

•   Tier 2 is an escalated
layer of care that
consists of one-to-one
contact between
Customer Service
Representatives and
Service Subscribers.
Tier 2 Customer Care
Representatives
address issues
escalated from Tier 1
Customer Care
Representatives.

	 	EMBARQ to provide all
Tier 1 and 2 customer
support as
follows:

•   Provide email address,
chat function or
telephone number for Service
Subscriber to
contact Customer
Service Representative
to resolve questions
relating to the
following:

-   Account/billing inquiries

-   Order status/inquiries,

-   CPE provisioning inquiries

-   Order cancellations

-   Service upgrades or downgrades

-   Service cancellations

-   Internet Connectivity

-   Sync

-   Modem/equipment issues

-   HSI Installation

-   Account Registration

-   Proxy or firewall software, or network configuration issues

-   Email configuration/issues

-   Security download issues

-   Portal Issues

-   Username/Password look-up or reset

	 	Synacor does not provide
Tier 1 or Tier 2 support to
EMBARQ customers.

67

 

	 	 	 	 	 
	 	 	EMBARQ	 	 
	Customer Care Level	 	Responsibilities	 	Synacor Responsibilities
	 
	 	 	 	 
	Tier 3

	 	Tier 3
	 	Tier 3
	Tier 3 issues involve any
issue that could not be
resolved at the Tier 2
layer,
such as:

•   Network Issue/Outage

•   Registration Connectivity between Synacor and EMBARQ

•   Internet Security Software

•   Email

•   Portal Access/Functionality

	 	
•   Embarq is responsible
for network operations
and connectivity on the
Embarq Network.

	 	
•   Resolve problems that
are escalated from
Embarq Tier 2 in the
form of trouble tickets or
telephone escalations.

68

 

Exhibit 13

Change Management Requirements

	1.	 	Each Party will use commercially reasonable efforts to notify the other Party by telephone
and email of any change associated with any of such Party’s software or equipment that affects
the interfaces between the Parties’ systems, including a suggested implementation plan.
Notification will be communicated to the Parties’ respective Contract Representatives. The
Parties mutually shall agree upon any implementation plan.

	 	•	 	The Party whose software or equipment change is affecting the
interfacing of the Parties’ system will make software upgrades or equipment
upgrades that address the issue, if necessary.
	 
	 	•	 	Such Party will provide documentation as needed that insures the
successful implementation of the software upgrade or equipment upgrade. A back out
plan to remove such upgrade will also be documented should it be needed.
	 
	 	•	 	Each Party will comply with the time frames mutually agreed upon
in the implementation plan.

	2.	 	In the event Synacor implements a change affecting Embarq, Synacor agrees to have a
Synacor representative attend a reasonable number of change management calls designated by
Embarq at mutually agreeable times.

Reporting Problems

	1.	 	CSR encounters problem.
	 
	2.	 	CSR enters problem into Issues Log, or if a CTSC representative, places a call to the
appropriate Operations Project Manager with responsibility to address the type of problem
encountered.
	 
	3.	 	Issues Log and any calls received from the CTSC are reviewed by Embarq within 24 hours of
entry/receipt by the appropriate Operations Project Manager to determine if the problem is
functional or technical in nature.

	 	3.1	 	Functional issues are resolved by the appropriate Operations Project Manager.
	 
	 	3.2	 	Technical issues are reported to the Rapid Problem Management (RPM) Team or the
ESC/Helpdesk by the Operations Project Manager, who is responsible to supply the
necessary information for reporting the problem. The reporting numbers are:

RPM Team at [*]

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

69

 

	 	 	 	This number is the number which goes directly to the RPM Team. This number should only be
used for critical issues affecting multiple Users.

ESC/Helpdesk at [*]

This number is used for single issues and goes through an IVR unit menu structure.

	4.	 	The RPM Team or the ESC/Helpdesk will open a ticket and either resolves the problem on-line
or dispatch the ticket to the appropriate fix agent.

Legend

CSR- Customer Service Representative in Call Centers or Customer
Technical Support Center (CTSC)

ESC- Enterprise Solutions Center

FMC- Force Management Center

SME- System Matter Expert

TSA- Technical System Analyst

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

70

 

Service Assurance & Monitoring Rapid Problem Management Team 

High Severity Incident and Problem Management Policies and Guidelines

	1.	 	Purpose and Scope: This Exhibit defines the principles, guidelines and processes used by the
Embarq Rapid Problem Management Team in providing end-to-end high severity incident and
problem management for the owners of Embarq’s systems, applications, and services. (Throughout
this exhibit, the term “product/service” refers to systems, products, applications, and
services supported by Rapid Problem Management).
	 
	2.	 	Rapid Problem Management: The Rapid Problem Management Team (RPM) in partnership with other
support organizations at Embarq is responsible for minimizing critical service disruptions
through rapid response, focused management, and clear, concise communications to Embarq, its
fix agents and management. The RPM team is the single point of contact for major service
outages and is staffed 7X24X365. The RPM team manages all severity 1 and 2 outages starting
with detection and ending with Embarq verification upon restoral.
	 
	3.	 	Reporting Sev1/Sev2 outages to the RPM team: The RPM team receives reports from an ESC
analyst or via the RPM team’s Key Customer line.

	 	3.1.	 	A “Key Customer” is one that has been given permission to report high severity
incidents directly into the RPM team via the Key Customer line. This process enables a
system matter expert representing a large Embarq community to identify and report major
service disruptions directly to the RPM team increasing the accuracy of the incident report
and significantly reducing the reporting time and the RPM team’s call volume.
	 
	 	3.2.	 	In all cases, to resolve an issue quickly the RPM team needs a detailed description of
the major service outage from the reporter, a valid 24X7 Embarq contact and an
understanding of the impact to the business. Incidents are evaluated for severity
assignment based upon the availability of a work-around, legal/regulatory/fmancial impact
and impact to critical applications or sites and business operations. (See severity
determination below.)
	 
	 	3.3.	 	When an ESC analyst identifies a severity 1/severity 2 incident, data is gathered and a
Service Center ticket is created. The ticket is documented and first level trouble-shooting
is performed. The identifier is then warm-transferred to the RPM team. The RPM team will
ask any additional required questions and then will advise the identifier of how the
incident will be pursued.
	 
	 	3.4.	 	For incident resolution the RPM team uses a process also called Rapid Problem
Management or RPM.

	 	3.4.1.	 	Some of the components of RPM are:

	 	3.4.1.1.	 	Rapid Problem Management documents all product/service components and
potential fix agencies.

71

 

	 	3.4.1.2.	 	A Rapid Problem Management Team includes all primary fix agents
on-call, key members of management and other stake-holders.
	 
	 	3.4.1.3.	 	All secondary fix agencies are documented and paged on an as needed basis.
	 
	 	3.4.1.4.	 	Conference bridges may be established and all necessary participants are paged
to join.
	 
	 	3.4.1.5.	 	The user of the product/service is invited to join the bridge to assist with
incident resolution and to relay information between the fix agents and their
peers/co-workers.
	 
	 	3.4.1.6.	 	The RPM team will send regular pages to pre-established contact lists to keep
management and other stake-holders apprised of status.

	4.	 	Rapid Problem Management Paging. Update pages are only sent between the hours of 07:00 –
19:00 Central time weekdays.

	 	4.1.	 	Throughout the duration of a severity 1 outage the RPM will track and update the
associated record using Service Center. The RPM team will also provide paging updates
to management and users at regular intervals as described below:

	 	4.1.1.	 	Initial page — the initial page will be sent within 30 minutes of the initial report
to RPM and will provide a ticket number, date, a brief description of the problem,
impact, status and what time the next update will be provided.
	 
	 	4.1.2.	 	Update page — the update page is sent every two hours until bypass is achieved, and
will provide a ticket number, date, a brief description of the problem, impact, an
updated status and what time the next update will be provided.
	 
	 	4.1.3.	 	Restoral page — the restoral page will be sent as soon as Embarq verification is
complete, and will provide a ticket number, date, brief description of the problem,
impact, status will be what action was taken for bypass and a restoral time.

	5.	 	Problem Tracking: Every ticket opened by RPM is continually updated by the RPM team until
bypass is reached. Once bypass is achieved the ticket is assigned. From that point on the
“owner” of root cause should continue to update the record until it is closed. This record
includes key diagnostic information, actual work done, notification given, escalation
requests, ticket transfers and ICA/RCA. The Service Center ticketing system root cause module
supports the ICA/RCA activities.
	 
	6.	 	Ticketing System Requirements: Currently there is one ticketing system used by the incident
and problem management groups, which is known as Service Center. Incidents and problems for
all products or services supported by ESC and RPM are tracked through Service Center. Every
production fix agency must have an assignee group name in Service Center.
	 
	7.	 	Severity Level Definitions: All incidents managed by Rapid Problem Management will have a
severity level assigned indicating the impact to business operations. The valid severity
levels are defined below.

72

 

	 	7.1.	 	Severity 1 incidents are those which cause a critical impact to the business function and
render the product/service unavailable/unusable. These incidents justify immediate management
attention and dedicated resources to resolve as quickly as possible.
	 
	 	7.2.	 	Severity 2 incidents are those that severely impair the use of a business critical
product/service. Business impact justifies priority attention and dedicated resources to solve
the problem in a timely manner.
	 
	 	7.3.	 	Severity 3 incidents are those which result in minimal impact to the business function and
customer. These incidents require timely resolution to minimize future impacts. Resources
should be allocated to work the incidents in accordance with normal managerial planning and
prioritization processes. All severity 3 problems should be reported to the ESC.

               Definition of Terms:

	 
	 	7.4.	 	Fix Agency: A fix agency is the product/service owner, the group responsible for actually
resolving the incident. Fix agents that support applications/services that are managed by the
RPM team have a 5 minute SLA to respond to the RPM team’s page.
	 
	 	7.5.	 	Problem Area Coordinator (PAC): A Problem Area Coordinator represents the fix agency in the
coordination and administration of incident records. The PAC ensures that personnel within
their organization follow procedures for working incident records, and serves as a primary
contact for the incident management process. The RPM team will not assign records to fix
agencies without their prior knowledge and consent. However, once the record is accepted it
will be the responsibility of the PAC to resolve, document ICA/RCA, close or arrange a
transfer to another agency if required.
	 
	 	7.6.	 	Knowledge Base: The Rapid Problem Management Team’s knowledge base is a repository for
information about technology products and services used by Embarq business units. It contains
specific information about all the products and services we support. It identifies the owners
and fix groups who support these products and services. Information collected during the
planning phase is added to the knowledge. As support plans change for a specific product or
service, updated information must be provided to the RPM team.
	 
	 	7.7.	 	Incident Bypass: Bypass occurs when the outage documented in the incident record is over or
when a temporary or alternate resolution, acceptable to the customer, becomes available and
service has been restored.
	 
	 	7.8.	 	Incident Closed: The incident is closed when service has been restored, root cause analysis
(RCA) and irreversible corrective action (ICA) completed, and the ticket has
been updated.
	 
	 	7.9.	 	SME: Person who is an ‘Expert’ in the subject area of concern.

[*]

 

	 	 
	*	CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

73

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