Document:

Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (“Agreement”) is made as of                     , 201   by and between TetraLogic Pharmaceuticals Corporation, a Delaware corporation (the “Company”), and                         (“Indemnitee”).  This Agreement supersedes and replaces any and all previous agreements between the Company and Indemnitee covering the subject matter of this Agreement, including without limitation the Indemnification Agreement, dated                        between the Company and the Indemnitee (the “Prior Agreement”).

 

RECITALS

 

WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as [directors / officers] or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

 

WHEREAS, the board of directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.  The certificate of incorporation of the Company (the “Certificate of Incorporation”) requires indemnification of the officers and directors of the Company.  Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the “DGCL”).  The Certificate of Incorporation and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;

 

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining qualified individuals;

 

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining qualified individuals is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

 

 

WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

 

WHEREAS, Indemnitee does not regard the protection available under the Certificate of Incorporation and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity.  Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified;

 

WHEREAS, Indemnitee is a representative of                        (the “Fund”), and has certain rights to indemnification and/or insurance provided by the Fund which Indemnitee and the Fund intend to be secondary to the primary obligation of the Company to indemnify Indemnitee as provided herein, with the Company’s acknowledgement and agreement to the foregoing being a material condition to Indemnitee’s willingness to serve on the Board;

 

WHEREAS, the Company and the Indemnitee desire to supersede and replace the Prior Agreement in its entirety with this Agreement; and

 

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

Section 1.                                           Services to the Company.  Indemnitee agrees to serve or to continue to serve as a [director / officer] of the Company.  Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position.  This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.  Indemnitee specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries or any Enterprise), if any, is at will, and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other applicable formal severance policies duly adopted by the Board, or, with respect to service as a director or officer of the Company, by the Certificate of Incorporation, the Company’s bylaws (the “Bylaws”), and the DGCL.  The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee has ceased to serve as a [director / officer] of the Company, as provided in Section 16 hereof.

 

Section 2.                                           Definitions.  As used in this Agreement:

 

(a)                                 References to “agent” shall mean any person who is or was a director, officer, or employee of the Company or a subsidiary of the Company or other person authorized by the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.

 

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(b)                                 A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

 

(i)                                     Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities unless the change in relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;

 

(ii)                                  Change in Board of Directors.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

 

(iii)                               Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

 

(iv)                              Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and

 

(v)                                 Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

 

For purposes of this Section 2(b), the following terms shall have the following meanings:

 

(1)                                 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

(2)                                 “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit

 

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plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

 

(3)                                 “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

 

(c)                                  “Corporate Status” describes the status of a person who is or was a director, officer, employee or agent of the Company or of any other corporation, limited liability company, partnership or joint venture, trust or other enterprise which such person is or was serving at the request of the Company.

 

(d)                                 “Disinterested Director” shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

 

(e)                                  “Enterprise” shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, employee, agent or fiduciary.

 

(f)                                   “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 14(d) only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise.  The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee’s counsel as being reasonable shall be presumed conclusively to be reasonable.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(g)                                  “Independent Counsel” shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other

 

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party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

(h)                                 The term “Proceeding” shall include any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by him (or a failure to take action by him) or of any action (or failure to act) on his part while acting pursuant to his Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement.  If the Indemnitee believes in good faith that a given situation may lead to or culminate in the institution of a Proceeding, this shall be considered a Proceeding under this paragraph.

 

(i)                                     Reference to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

Section 3.                                           Indemnity in Third-Party Proceedings.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding had no reasonable cause to believe that his conduct was unlawful.  The parties hereto intend that this Agreement shall provide to the fullest extent permitted by law for indemnification in excess of that expressly permitted by

 

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statute, including, without limitation, any indemnification provided by the Certificate of Incorporation, the Bylaws, vote of its stockholders or disinterested directors or applicable law.

 

Section 4.                                           Indemnity in Proceedings by or in the Right of the Company.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company.  No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

 

Section 5.                                           Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

Section 6.                                           Indemnification For Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of his Corporate Status, a witness or otherwise asked to participate in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

 

Section 7.                                           Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

Section 8.                                           Additional Indemnification.

 

(a)                                 Notwithstanding any limitation in Section 3, Section 4, or Section 5, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if

 

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Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection with the Proceeding.

 

(b)                                 For purposes of Section 8(a), the meaning of the phrase “to the fullest extent permitted by applicable law” shall include, but not be limited to:

 

(i)                                     to the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and

 

(ii)                                  to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

 

Section 9.                                           Exclusions.  Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnification payment in connection with any claim made against Indemnitee:

 

(a)                                 for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; provided that the foregoing shall not affect the rights of Indemnitee or the Fund Indemnitor set forth in Section 15(e) below; or

 

(b)                                 for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as defined in Section 2(b) hereof) or similar provisions of state statutory law or common law, or (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); or

 

(c)                                  except as provided in Section 14(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

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Section 10.                                    Advances of Expenses.  Notwithstanding any provision of this Agreement to the contrary (other than Section 14(d)), the Company shall advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding (or any part of any Proceeding) not initiated by Indemnitee, and such advancement shall be made within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding.  Advances shall be unsecured and interest free.  Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.  In accordance with Section 14(d), advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.  The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that the Indemnitee undertakes to repay the amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company.  No other form of undertaking shall be required other than the execution of this Agreement.  This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 9.

 

Section 11.                                    Procedure for Notification and Defense of Claim.

 

(a)                                 Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof.  The written notification to the Company shall include a description of the nature of the Proceeding and the facts underlying the Proceeding.  To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding.  The omission by Indemnitee to notify the Company hereunder will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement.  The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.

 

(b)                                 The Company will be entitled to participate in the Proceeding at its own expense.

 

Section 12.                                    Procedure Upon Application for Indemnification.

 

(a)                                 Upon written request by Indemnitee for indemnification pursuant to Section 11(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a

 

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committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Board, by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.  Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any costs or Expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.  The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied.

 

(b)                                 In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel shall be selected as provided in this Section 12(b).  If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected.  If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected.  In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit.  If, within twenty (20) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 12(a) hereof.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further

 

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responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

 

Section 13.                                    Presumptions and Effect of Certain Proceedings.

 

(a)                                 In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.  Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(b)                                 Subject to Section 14(e), if the person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 13(b) shall not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) of this Agreement.

 

(c)                                  The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in

 

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good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

(d)                                 For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by the Enterprise.  The provisions of this Section 13(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

 

(e)                                  The knowledge and/or actions, or failure to act, of any director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

Section 14.                                    Remedies of Indemnitee.

 

(a)                                 Subject to Section 14(e), in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 12(a) of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5, Section 6 or Section 7 or the last sentence of Section 12(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) payment of indemnification pursuant to Section 3, Section 4 or Section 8 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of his entitlement to such indemnification or advancement of Expenses.  Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 14(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his rights under Section 5 of this Agreement.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

11

 

(b)                                 In the event that a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 14 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

 

(c)                                  If a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

(d)                                 The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder.  The Company shall, to the fullest extent permitted by law, indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims; if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is successful on such underlying claims or otherwise as permitted by law, whichever is greater.

 

(e)                                  Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

 

Section 15.                                    Non-Exclusivity; Survival of Rights; Insurance; Subrogation.

 

(a)                                 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by

 

12

 

such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Certificate of Incorporation and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

(b)                                 To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

 

(c)                                  Except as provided in Section 15(e) below, in the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

(d)                                 Except as provided in Section 15(e) below, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

(e)                                  The Company hereby acknowledges that Indemnitee has certain rights to indemnification, advancement of expenses and/or insurance provided by the Fund and certain of its affiliates (collectively, the “Fund Indemnitors”).  The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary), (ii) that it shall be required to advance the full amount of Expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the Certificate of Incorporation or Bylaws (or any agreement between the Company and Indemnitee), without regard to any rights Indemnitee may have against the Fund Indemnitors, and, (iii) that it irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution,

 

13

 

subrogation or any other recovery of any kind in respect thereof.  The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company.  The Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of the terms hereof.

 

Section 16.                                    Duration of Agreement.  This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a [director / officer] of the Company or (b) one (1) year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement relating thereto.  The indemnification and advancement of expenses rights provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

 

Section 17.                                    Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

Section 18.                                    Enforcement.

 

(a)                                 The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve or to continue to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

 

(b)                                 This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof (including the Prior Agreement); provided, however, that this Agreement is a

 

14

 

supplement to and in furtherance of the Certificate of Incorporation and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

Section 19.                                    Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.

 

Section 20.                                    Notice by Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise.

 

Section 21.                                    Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received:

 

(a)                                 If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company.

 

(b)                                 If to the Company to

 

Tetralogic Pharmaceuticals Corporation
 343 Phoenixville Pike
 Malvern, PA 19355

 

or to any other address as may have been furnished to Indemnitee by the Company.

 

Section 22.                                    Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

15

 

Section 23.                                    Applicable Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably The Corporation Trust Company, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801 as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

 

Section 24.                                    Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

Section 25.                                    Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.  The headings of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

 

16

 

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

 

	
TETRALOGIC   PHARMACEUTICALS CORPORATION
    	
 
    	
INDEMNITEE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
By:
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
Address:
    

 

 

SCHEDULE OF PARTIES TO EXHIBIT 10.1

 

	
Name
    	
 
    	
Position
    
	
J. Kevin Buchi
    	
 
    	
President, Chief Executive Officer and Director
    
	
Pete A. Meyers
    	
 
    	
Chief Financial Officer and Treasurer
    
	
C. Glenn Begley
    	
 
    	
Chief Scientific Officer and Senior Vice President,   Research & Development
    
	
Lesley Russell
    	
 
    	
Chief Operating Officer and Chief Medical Officer
    
	
Richard L. Sherman
    	
 
    	
Senior Vice President, Strategic Transactions, General Counsel and   Secretary
    
	
Andrew Pecora
    	
 
    	
Chairman and Director
    
	
Douglas E. Onsi
    	
 
    	
Director
    
	
Douglas Reed
    	
 
    	
Director
    
	
Paul Schmitt
    	
 
    	
Director
    
	
Michael Steinmetz
    	
 
    	
Director
    
	
James Woody
    	
 
    	
Director
    
	
Mary Ann Gray
    	
 
    	
Director
    
	
Michael D. Kishbauch
    	
 
    	
DirectorEX-10.44

 Exhibit 10.44 

PAY-FOR-CALL DISTRIBUTION AGREEMENT 

Yellowpages.com LLC, a Delaware limited liability company d/b/a AT&T Interactive (“ATTi”), with its principal place of
business at 611 N. Brand Boulevard, 5th Moor, Glendale, CA 91203, and Marchex Sales, Inc., a Delaware corporation (“Marchex”), with its principal place of business at 4425 Spring
Mountain Road, Suite 210, Las Vegas NV 89103 (each singularly a “Party” and collectively the “Parties”) hereby enter into this Pay-For-Call Distribution Agreement (“Agreement”) as of the date when
signed by the last party, but effective as of January 1, 2011 (the “Effective Date”). All capitalized terms not otherwise defined herein shall have the meaning attributed to them in Exhibit A hereto and incorporated by
this reference. 
 Campaign Summary 
  

					
	 	 	 
	Advertising
Description:	  	 Pay-for-call campaign using the Marchex Network.

 
	  	
Call Recording:
 x   Yes      ̈  No

	  	x   Participating in Skype Pay-For-Call Exchange Program	  
	 	 
	Charged Call Fee:	  	$*** per call to a Call Tracking Number or such other rate as mutually agreed upon by the Parties in writing.

  

	1.	Distribution of ATTi SEM Product Listings. 

 1.1. ATTi SEM Products. ATTi
offers to ATTi Advertisers a marketing product primarily driven by search engine marketing currently known as YPConnect, in which one of the performance metrics is delivering leads that may include calls (collectively, the “ATTI SEM
Product”). ATTi shall provide to Marchex ATTi SEM Product Listings for the ATTi SEM Product in accordance with the terms of this Agreement. 

1.2. Distribution and Display of ATTi SEM Product Listings. Marchex owns and operates the Marchex Channels and has the right to display
or otherwise include advertising content on or through the Distribution Partner Channels (the Marchex Channels and Distribution Partner Channels are collectively referred to as the “Marchex Network”). Subject to the terms of this
Agreement, Marchex shall utilize Cali Tracking Numbers to drive calls via landline telephones, mobile phones, and over the Internet to ATTi Advertisers. Where possible, Marchex shall insert into each ATTi SEM Product Listing a Call Tracking Number
and then distribute and display the ATTi SEM Product Listings in the Marchex Network in a manner that will enable Users of the Marchex Network to call ATTi Advertisers utilizing the Call Tracking Numbers. 

 

	2.	Marchex’s Obligations. 

 2.1. License and Location of Display of
Listings. Subject to the terms of this Agreement, ATTi grants Marchex, during the Term, a non-exclusive, non-sublicensable (except as provided below), non-transferable, revocable license to (1) insert Call Tracking Numbers into ATTi SEM
Product Listings and (ii) display ATTi SEM Product Listings in digital advertisements within the Marchex Network in the United States in response to User actions initiated by: (a) entering keyword search terms into a query box;
(b) clicking, pressing or using voice command on a labeled hyperlink or phone application listing corresponding to a business category or type of business or a contextually relevant content category; (c) affirmative consents, such as
opt-in approvals to receive sponsored advertisements; (d) audio or telephone search requests; or (e) mobile listing look-ups. Marchex will have the right to sublicense to Distribution Partners, with respect to the Distribution Partner
Channels, the rights granted to Marchex in this Section 2.1, provided that: (i) Marchex shall cause each Distribution Partner to comply with all applicable obligations and restrictions pertaining to Marchex hereunder; and
(ii) Marchex shall be responsible for 

  
 1 

	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
any breach by any such Distribution Partner of any such obligations and restrictions. Notwithstanding anything to the contrary in this Agreement, however, Marchex shall meet, and ensure that each
Distribution Partner meets, the minimal geo-targeting criteria specified by ATTi *** and shall use commercially reasonable efforts to meet and ensure that each of its Distribution Partner meets further reasonable geo-targeting criteria specified by
ATTi. Marchex agrees that it will ***. National sponsorship is defined as an advertisement or listing that is presented without geo-targeting. ATTi shall have no obligation to supply any minimum number of ATTi SEM Product Listings to Marchex under
this Agreement. Marchex makes no guarantee as to the availability or volume of calls from Users within the Marchex Network. 
 2.2. No
Implied License. Except for the license granted in Section 2.1, no other licenses are granted by ATTi to Marchex by implication, estoppel, or otherwise with respect to the ATTi SEM Product Listings. Marchex shall not use any ATTi SEM
Product Listings for any purpose not expressly described in Section 2.1, and ATTi reserves all rights not expressly granted hereunder. 

2.3. Determination of Marchex Network. Marchex will have the right to determine which sites and applications in the Marchex Network
will display the ATTi SEM Product Listings, and Marchex does not guarantee inclusion of the ATTi SEM Product Listings within the published results of any particular Distribution Partner Channel. ***. 

2.4. Delivery of ATTi SEM Product Listings. ATTi shall deliver the ATTi SEM Product Listings for display in the Marchex Network in a
manner mutually agreed by the Parties in writing (email sufficient). 
 2.5. Call Tracking Numbers. When Marchex displays ATTi SEM
Product Listings in the Marchex Network, Marchex shall, at its sole cost, obtain and assign Call Tracking Numbers for each ATTi SEM Product Listing. In addition to the minimum call duration requirements set forth in Section 4 below:
(a) Marchex shall apply its proprietary technologies designed to detect erroneous calls placed to a Call Tracking Number where the callers are trying to reach an ATTi Advertiser but instead reach a different advertiser to which that Call
Tracking Number was previously assigned (and accordingly replace the respective Call Tracking Number); (b) each Call Tracking Number displayed shall have the same area code as the ATTi SEM Product call tracking number previously assigned to the
respective ATTi SEM Product Listing (“Prior CTN”); and (c) Marchex shall not display a toll-free Call Tracking Number in any ATTi SEM Product Listing that has a local Prior CTN. ATTi shall not have the right to re-assign the
Call Tracking Numbers or to use them other than as explicitly set out herein without the prior written consent of Marchex. The Parties acknowledge and agree that ATTi’s use of any Call Tracking Numbers may be further limited by, among other
factors, changes to telephone carrier terms, changes in carrier relationships, guidelines recommended by Federal, state or local regulators, or changes to applicable law 

  
 2 

 

	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
and regulation from time to time. All Call Tracking Numbers remain the property of Marchex, pursuant to agreements with its various telephone carriers and vendors, and are made available to ATTi
Advertisers solely for use in accordance with the terms and conditions of this Agreement. 
 2.6. Cancellations. ATTi may cancel any
ATTi Advertiser campaign and request the removal of the related ATTi SEM Product Listing(s), in accordance with the following terms. ATTi shall send to Marchex written notice of any such cancellation (email sufficient). Marchex shall, as soon as
practicable, but in no event more than *** after receiving a cancellation notice, cancel and take all commercially reasonable action to remove and completely purge the applicable ATTi SEM Product Listing(s) from the Marchex Network, or take any
other commercially reasonable actions that ATTi requests. Additionally, in the event of removal of an ATTi SEM Product Listing pursuant to the preceding sentence, Marchex shall not continue to use, or permit the continued use of, the content of such
ATTi SEM Product Listing in any manner, including without limitation, converting such ATTi SEM Product Listing into a free listing within the Marchex Network. Any failure of Marchex to comply with the requirements of this Section 2.6
shall constitute a material breach of this Agreement. For the avoidance of doubt, ATTi shall be responsible for Charged Call Fees (as defined below) associated with any calls relating to the cancelled ATTi SEM Product Listing(s) occurring prior to
the end of such two-day cancellation period, but shall have no liability for any Charged Call Fees associated with calls relating to such ATTi SEM Product Listing occurring thereafter. 

2.7. Display Requirements. Marchex shall comply with the following requirements with respect to the display of ATTi SEM Product
Listings on the Marchex Network: 
 (a) With respect to each ATTi SEM Product Listing, Marchex shall display on Marchex SERPs, subject to
the requirements and capabilities of the party in control of such Marchex SERP, at a minimum, the following data returned via the ATTi Feed, provided such data is available: business name, business address (street address, city, and state), Call
Tracking Number, business services offered or business category, description of the business, and hyperlink to a landing page on which additional details of the ATTi Advertiser are provided. Marchex may exclude at any time any specific ATTi
Advertiser, category or type of business or particular jurisdictions from distribution via the Marchex Network. 
 2.8. Geographic Call
Filtering. Marchex shall use reasonable efforts to monitor the Marchex Network for calls from land-line Users that are Out-of-Area and to limit the number of such calls. Marchex shall block all international calls and use technology designed to
filter calls that are not within the respective ATTi Advertiser’s service geography area. 
 2.9. Skype Pay-for-Call Exchange
Program. The Marchex SERPs displaying the ATTi SEM Product Listings will promote the fact that Users who are Skype subscribers can call the relevant ATTi Advertiser free of cost to the User. With respect to any Skype call a User Makes to any
ATTi Advertiser, however, under no circumstances shall ATTi or any ATTi Advertiser have any obligation to pay any fee or surcharge other than the Charged Call Fee that ATTi is required to pay Marchex pursuant to Section 4.1. 

2.10. Call Recording. Marchex may make available to ATTi Advertisers the option to subscribe to call-recording advertising services in
the form offered by Marchex through the Marchex Network (“Call-Recording Services”). The Parties acknowledge that the Call-Recording Services shall be governed by Project Addendum No. 4 entered between ATTi and March effective
as of April 22, 2011, which supplements and is governed by that certain Master Services and License Agreement entered between ATTi and Marchex effective as of October 1, 2007, as amended by all amendments, Change Rule Sheets, and Project
Addenda thereto, including all attachments thereto. 

  
 3 

 

	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 2.11. ATTi’s Feed Specifications and Guidelines. 

(a) Marchex shall use commercially reasonable efforts to comply with ATTi’s specifications and guidelines pertaining to the ATTi Feed
(the “Feed Specifications”), if any, that ATTi provides to Marchex to enable proper delivery, display, tracking, and reporting of ATTi SEM Product Listings. If ATTi sends Marchex reasonable updates or changes to the Feed
Specifications, Marchex shall comply with all new requirements as promptly as commercially reasonable. 
 (b) Marchex shall not modify in
any way the Feed Specifications or the ATTi Feed. 
 (c) Marchex’s failure to comply with the Feed Specifications and the other
requirements in this Section 2.11 shall, in addition to any other rights and remedies ATTi may have under this Agreement or under law, give ATTi the right to immediately suspend providing the ATTi SEM Product Listings to Marchex provided
that ATTi has given Marchex written notice of the breach and Marchex has not cured the breach within *** of ATTi’s provision of such notice. 

2.12. Restrictions. 
 (a)
Restrictions on Use of ATTi SEM Product Listings. Except as expressly permitted herein or to the extent reasonably contemplated for Marchex to perform its obligations hereunder, Marchex shall not (i) sell, resell, lease, redistribute,
license, sublicense or transfer all or any portion of any ATTi SEM Product Listing or any content therein or the Feed Specifications; (ii) publish a directory in any form, including the public Internet, using the ATTi SEM Product Listings or
any portion of the ATTi SEM Product Listings or any data retrieved or derived from the ATTi SEM Product Listings; (iii) use any robot, spider, site search/retrieval application, or other device to retrieve or index the ATTi SEM Product Listings
or any portion of the ATTi SEM Product Listings; (iv) execute “bulk” download operations or collect information about Users for any unauthorized purpose; (v) except as authorized under this Agreement, create any functionality in
the Marchex Network permitting the export of any of the ATTi SEM Product Listings or any content therein or otherwise grant to any third party access to the ATTi SEM Product Listings or any content therein; (vi) prepare any derivative works
from the ATTi SEM Product Listings, the ATTi Feed, or the Feed Specifications; (vii) incorporate the ATTi SEM Product Listings as the primary content in any Marchex Network; (viii) use any of the ATTi SEM Product Listings to support
operator assisted or voice enabled directory assistance services; or (ix) use any of the ATTi SEM Product Listings or any content therein as a lead list to solicit, either directly or indirectly, any advertiser included in any ATTi SEM Product
Listing for any purpose. 
 (b) Modification of ATTi SEM Product Listings. Subject to the requirements and capabilities of
Distribution Partners or except as expressly agreed by ATTi in writing (email sufficient), Marchex shall not: (i) edit or modify any ATTi SEM Product Listing in any way except, with respect to graphic images in search results, to re-size such
images while maintaining the same relative proportions of the image; (ii) truncate any information contained in any ATTi SEM Product Listing or filter out any portion of an ATTi SEM Product Listing unless authorized in writing by ATTi;
(iii) integrate data, listings, or advertisements from Marchex or any third party into any ATTi SEM Product Listing displayed on the Marchex Network; (iv) modify, replace, or otherwise disable the functioning of links contained in any ATTi
SEM Product Listing; (v) create functionality in the Marchex Network that permits Users to do any of the foregoing; or (vi) display other content listings above the ATTi SEM Product Listings on Marchex SERPs. 

(e) Legal Compliance; Consents; Payment Rules. Marchex shall at all times: (i) comply with all applicable local, state, national,
and international laws and regulations, including, without limitation, all applicable privacy, export control laws and regulations and country-specific economic sanctions 

  
 4 

 

	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
implemented by the United States Office of Foreign Assets Control in connection with Marchex’s use of the ATTi Feed; and (ii) obtain and maintain all licenses, permits, and other
permissions necessary in connection with any Marchex Network. 
 (d) Content Restrictions. The Marchex Network and the content
thereof (including without limitation any advertising content) shall not promote Restricted Content, and Marchex shall not knowingly permit the Marchex Network to contain any Restricted Content. In addition, Marchex will not use, or knowingly permit
Distribution Partners to use, the Marchex Network, and the Marchex Network will not be designed in a manner that: (i) is fraudulent, misleading, deceptive, illegal, or might mislead a User into believing he or she is interacting directly with
ATTi; (ii) infringes, violates, or misappropriates any third party’s Intellectual Property Rights or other proprietary rights, (iii) facilitates the distribution of copyrighted content without the authorization of the copyright
holder, or that might be libelous or defamatory; (iv) engages in spamming or other advertising or marketing activities that violate any applicable laws, regulations or generally-accepted advertising industry guidelines; or (v) promotes the
Marchex Network as being intended or primarily useful for any unlawful activity. 
 (e) Privacy; Security. Without limiting
Marchex’s other obligations under this Agreement, on each site or application in the Marchex Channel displaying ATTi SEM Product Listings, Marchex shall post and adhere to a privacy policy that complies with all applicable laws, regulations,
and generally accepted industry standards and, in the case of Distribution Partner Channels, Marchex shall require that the respective Distribution Partner shall post and adhere to a privacy policy that complies with all applicable laws,
regulations, and generally accepted industry standards. Marchex shall implement, and shall require Distribution Partners to implement, security technology that is effective at restricting unauthorized access to and use of the ATTi SEM Product
Listings and the ATTi Feed. 
 (f) Cooperation Regarding ATTi Advertiser Queries. For purposes of resolving any query of an ATTi
Advertiser, Marchex shall provide the following information to ATTi within *** of receiving of a written request from ATTi (email sufficient): (i) Call Tracking Number(s) used for the ATTi Advertiser on the Marchex Network; (ii) the name
and details of any source that delivered calls; and (iii) the type and nature of calls delivered from the source. 
  

	3.	ATTi’s Obligations. 

 3.1. General. ATTi shall: (a) provide ATTi SEM
Product Listings to Marchex via the ATTi Feed for display on the Marchex Network; and (b) bill each ATTi Advertiser for calls received through its Call Tracking Numbers. For the avoidance of doubt, ATTi shall not use any call recording feature
available through the Services during the Term. 
 3.2. ATTi Control. Notwithstanding anything to the contrary in this Agreement,
ATTi shall have sole discretion and control to determine which ATTi SEM Product Listings are displayed on the Marchex Network. ATTi shall have sole responsibility for and control of all aspects of its relationships with ATTi Advertisers, including:
(a) developing and providing ATTi SEM Product Listings; (b) billing and collecting any fees for the ATTi SEM Product from ATTi Advertisers; and (c) customer support and direct technical support to ATTi Advertisers. No ATTi Advertiser
will be a third-party beneficiary of this Agreement. ATTi shall be responsible for all marketing materials, advertising, and informational content relating to the ATTi SEM Product and any oral or written representations that ATTi makes to potential
customers and ATTi Advertisers. ATTi will have the right to modify or update any ATTi SEM Product from time to time in its sole discretion. 

3.3. Equipment; Security. ATTi shall be responsible for obtaining and maintaining any computer and phone equipment (and the like) and
ancillary products (collectively, the “Equipment”) 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
needed to perform its obligations under this Agreement. ATTi shall also be responsible for maintaining appropriate security safeguards with respect to property for which it maintains ownership,
control, use under license and/or access, including without limitation, its Equipment. 
 3.4. Advertiser Terms. ATTi shall enter
into terms and conditions with each ATTi Advertiser for which ATTi provides an ATTi SEM Product Listing hereunder (“Advertiser Terms”). The Advertiser Terms shall include, among other terms, suppliers and vendors of ATTi as
indemnitees. 
  

	4.	Fees and Payment Terms. 

 4.1. Fees. 

(a) In connection with ATTi SEM Product Listings displayed to Users of the Marchex Network, and subject to Section 4.4, ATTi shall
pay to Marchex $***, or such other rate as mutually agreed upon in writing, (“Charged Call Fee”) for each call a User places to a Call Tracking Number during the Term, where: *** (a “Qualifying Call”). For avoidance
of doubt, ATTi has no obligation to pay Marchex any fees for any Invalid Calls. 
 (b) Except as otherwise mutually agreed by the Parties in
writing, including in a separate written agreement between the Parties, ATTi shall have no obligation to pay any fees or expenses under this Agreement that are not set forth in this Section 4. For avoidance of doubt, ATTi will not be
required to meet any minimum spend level hereunder. 
 4.2. General Payment Terms; Call Billing Reporting. Marchex shall track and
calculate the performance, delivery, and other metrics in connection with the Qualifying calls made to Cali Tracking Numbers in ATTi SEM Product Listings displayed in the Marchex Network. Within *** of the end of each calendar month, Marchex shall
send ATTi a report that includes, without limitation, the following information: (a) the total number of Qualifying Calls made to ATTi Advertisers; (b) the total Charged Call Fees due; and (c) the rate used to calculate the Charged
Call Fees (“Call Billing Report”). Subject to ATTi’s right to audit Marchex’s records pursuant to Section 4.4, ATTi understands and agrees that Charged Call Fees will be calculated based upon Marchex’s
records. The Call Billing Reports shall be delivered to the FTP drop box specified by ATT. With each Call Billing Report, Marchex shall send ATTi an invoice reflecting the amounts due per the Report. Notwithstanding the foregoing, if the Charged
Call Fees owed in any given Report total US $250 or less, in lieu of sending an invoice, Marchex shall add these fees to the following month’s invoice. ATTi will pay the Charged Call Fees due Marchex within *** of receiving a correct invoice.
Invoices to ATTi shall be sent via email to the following email address: ***. If this Agreement is terminated, all fees due at the time of termination shall be paid within *** following the date of termination. All amounts payable under this
Agreement shall be denominated in United States dollars and are exclusive of all applicable domestic and foreign taxes, duties and excises in connection therewith. 

4.3. Call Metrics Reporting. In addition to the reporting provided pursuant to Section 4.2 above, for every User call made to a
Call Tracking Number in an ATTi SEM Product Listing displayed in the Marchex Network, Marchex shall provide to ATTi reporting that includes, at a minimum, all of the available information set forth in Exhibit B hereto, or such other
information as the Parties may otherwise agree from time to time, substantially in the form of Exhibit B (each a “Call Metrics Report”). 

4.4. Audit. For the purpose of verifying payments due Marchex under this Agreement, upon *** prior written notice to Marchex, not more
than once during any *** 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
period, ATTi may inspect the records of Marchex related to the information set forth in Reports and the calculation of payments due from Marchex. Before reviewing any of Marchex’s records,
employees or agents of ATTi conducting such audit shall enter into a suitable non-disclosure agreement with Marchex. If ATTi determines the amounts actually paid to Marchex by ATTi are more or less than the amounts due Marchex under this Agreement,
ATTi shall pay ATTi the amount of any such underpayment and Marchex shall reimburse to ATTi any such overpayment within *** of such determination and . Any audit shall be conducted at the sole cost and expense of ATTi, except that if the examination
of Marchex’s books or records reveals an overpayment by ATTi to Marchex of *** or more of the total amounts due to Marchex during any period examined, Marchex shall pay all reasonable expenses related to the performance of the audit. 

4.5. Invalid Calls. Marchex shall monitor the Marchex Network for Invalid Calls and shall maintain procedures for filtering Invalid
Calls and eliminating Invalid Calls from its reporting. Marchex will identify, promptly notify ATTi in writing of, and investigate in good faith any information or suspicious activity related to Invalid Calls, including investigating any information
or activity identified by ATTi and reported to Marchex. Marchex shall not bill ATTi for any Charged Call Fee with respect to Invalid Calls. Charges will be adjusted at the end of each calendar month for any credits relating to Invalid Calls. Marchex
agrees not to use, or allow the use of, any deceptive, incentivized, mechanical, computerized or other artificial means of changing or distorting the number of calls placed to Call Tracking Numbers, or any other measure of advertisement traffic on
the Marchex Network. 
  

	5.	Proprietary Rights and Restrictions. 

 5.1. ATTI SEM Product. ATTi is the
exclusive supplier of the ATTi SEM Products. As between ATTi and Marchex, ATTi is the exclusive owner of all right, title, and interest in and to the ATTi SEM Product Listings and all software, databases, and other aspects and technologies related
to the ATTi SEM Product, including any Intellectual Property Rights, modifications, improvements, and enhancements thereto. 
 5.2. Call
Tracking Numbers. As between the Parties, all Call Tracking Numbers remain the property of Marchex, pursuant to agreements with its various telephone carriers and vendors, and are made available to ATTi solely for use in accordance with the
terms and conditions of this Agreement. 
 5.3. Reservation of Rights Generally. Except as expressly provided herein, this Agreement
is not intended to, and shall not, affect the ownership by any Party of any of its Intellectual Property Rights, content, products and services, and this Agreement shall not be construed as the assignment or transfer of any ownership rights in any
of the foregoing from any Party to another. Except as expressly provided herein, this Agreement shall not be deemed a license (by implication, estoppel, or otherwise) under any Party’s patent rights or other Intellectual Property Rights. The
Parties reserve all rights not expressly granted under this Agreement. 
  

	6.	Call Data. 

 As between ATTi and Marchex, ATTi owns all information collected from ATTi
Advertisers and Users who call ATTi Advertisers using the Call Tracking Number (“Call Data”). ATTi will not sell, disclose, transfer, or rent to any third party any such Call Data that could reasonably be used in any manner, alone
or in conjunction with other information provided by ATTi Advertisers or Users or third parties, to identify a specific named User. Notwithstanding the foregoing or anything to the contrary in this Agreement, ATTi has the right to aggregate the data
it owns and provide to third parties general statistical information about the ATTi SEM Products and the usage of such services. Marchex shall have the non-exclusive, nontransferable, revocable, worldwide right, during the Term, to use Call Data ***

  
 7 

 

	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
***. Notwithstanding the foregoing, Marchex shall have a non-exclusive, nontransferable, perpetual worldwide right and license to create and use, ***. 

 

	7.	Term and Termination. 

 7.1. Initial Term and Renewals. This Agreement will
commence on the Effective Date and, unless sooner terminated as provided herein or as otherwise agreed, remain effective for an initial term of two (2) years (the “Initial Term”). After the Initial Term, this Agreement may be
renewed for additional terms (each a “Renewal Term,” and together with the Initial Term, the “Term”), by written agreement signed by both prior to the end of the respective Term. 

7.2. Termination for Cause. Unless otherwise provided in this Agreement, at any time during the Term, this Agreement shall terminate
(a) thirty (30) days after a Party gives written notice to the other Party that such other Party is in breach hereunder, unless the other Party cures such breach within said thirty (30) day period, or (b) upon five (5) days
prior written notice from ATTi to Marchex of ATTi’s reasonable determination that Marchex ***. 
 7.3. Termination for
Bankruptcy. Either Party may immediately terminate this Agreement by providing written notice to the other Party if the other Party experiences a Bankruptcy Event. 

7.4. Termination for Convenience. ATTi may terminate this Agreement for any reason or for no reason, by providing sixty
(60) days’ prior written notice to Marchex. 
 7.5. Effect of Termination. Any termination pursuant to this
Section 7 shall be without any liability or obligation of the terminating Party, other than with respect to any breach of this Agreement by the terminating Party. Upon the expiration or termination of this Agreement, each Party shall:
(a) immediately cease using the other Party’s Intellectual Property in connection with this Agreement; and (b) return to the other Party marketing literature and materials of the other Party in its possession or destroy such items and
certify their destruction to the other Party. Notwithstanding the foregoing or anything to the contrary in this Agreement, upon termination of this Agreement, ATTi shall retain all rights to the User Data and the ATTi SEM Product Listings. The
provisions of Sections 2.2 (No Implied License), 2.12 (Restrictions), 4.3 (Audit), 5 (Proprietary Rights and Restrictions), 6 (Call Data), 7.5 (Effect of Termination), 8 (Indemnification), 9.2 (Disclaimer of Warranties), 10 (Limitation and
Exclusion of Liability), 11 (Confidentiality), and 13 (Miscellaneous) shall survive any termination or expiration of this Agreement. 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

	8.	Indemnification. 

 8.1. Marchex Indemnification. Marchex, at its own expense, will
indemnify, defend, and hold harmless ATTi, its Affiliates and each of their respective directors, officers, employees, representatives, and agents (“ATTi Indemnitees”) from and against any claim, demand, action, class action,
investigation or other proceeding, including, but not limited to, all damages, losses, liabilities, judgments, costs and expenses (including attorneys’ fees) arising therefrom (“Claim”), brought by any third party unaffiliated
with ATTi and its Affiliates against any ATTi Indemnitees (collectively, an “ATTi Claim”) to the extent the ATTi Claim is based on, or arises out of: (a) an allegation that the Marchex Network or any content therein (except the
ATTi SEM Product Listings), the Marchex Marks, or Marchex’s performance hereunder violates any applicable law, rule, or regulation, is defamatory, or infringes or misappropriates the rights of any third party, including, but not limited to,
Intellectual Property Rights, privacy rights, and publicity rights; (b) a breach, or alleged breach, of any of Marchex’s representations, warranties, or obligations under this Agreement; or (c) any alleged or actual fraud, gross
negligence, or willful misconduct of Marchex. 
 8.2. ATTi Indemnification. ATTi, at its expense, will indemnify, defend, and hold
harmless Marchex, its Affiliates and each of their respective directors, officers, employees, representatives, and agents (“Marchex Indemnitees”) from and against any Claim brought by any third party unaffiliated with Marchex or its
Affiliates against any of the Marchex Indemnitees (collectively, a “Marchex Claim”) to the extent the Marchex Claim is based on, or arises out of: (a) an allegation that the ATTi Marks or ATTi’s performance hereunder
(excluding the content in any ATTi SEM Product Listings) violates any applicable law, rule, or regulation, is defamatory, or infringes or misappropriates the rights of any third party, including, but not limited to, Intellectual Property Rights,
privacy rights, and publicity rights; (b) a breach, or alleged breach, of any of ATTi’s representations or warranties under this Agreement; or (d) any alleged or actual fraud, gross negligence, or willful misconduct of ATTi. ***. 

8.3. Indemnification Procedures. The obligations of each Party (the “Indemnitor”) under this Agreement to defend,
indemnify, and hold harmless the other Party and its Affiliates, and their respective employees, representatives and agents (each, an “Indemnitee”) shall be subject to the following: (a) the Indemnitee shall provide the
Indemnitor with prompt notice of the Claim giving rise to such obligation; provided, however, that any failure or delay in giving such notice shall only relieve the Indemnitor of its obligation to defend, indemnify, and hold the Indemnitee
harmless to the extent it reasonably demonstrates its defense or settlement of the Claim was adversely affected thereby; (b) the Indemnitor shall have sole control of the defense and of all negotiations for settlement of such Claim; and
(c) the Indemnitee shall cooperate with the Indemnitor in the defense or settlement of any such Claim at the Indemnitor’s expense. Notwithstanding the foregoing, the Indemnitor shall not settle any claim unless such settlement completely
and forever releases the Indemnitee from all liability with respect to such Claim or unless the Indemnitee consents to such settlement in writing. Where the Indemnitor does not 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
request the Indemnitee to cooperate in the defense or settlement of any such Claim in which the Indemnitee is involved, the Indemnitee may participate in the defense of the Claim at its own
expense. 
  

	9.	Warranties. 

 9.1. Mutual Representations and Warranties. Each Party represents
and warrants as of the Effective Date and at all times throughout the term of this Agreement: (a) that it has the full corporate right, power and authority to enter into this Agreement and to perform its obligations hereunder; (b) that the
execution of this Agreement by such Party and performance of its obligations thereunder comply with all applicable laws, rules, and regulations (including privacy, export control and obscenity laws) but, with respect to ATTi, excluding the content
in any ATTi SEM Product Listing); and (c) when executed and delivered, this Agreement will constitute a legal, valid and binding obligation of such Party, enforceable against it in accordance with its terms. Marchex makes no representations or
warranties for any purposes with respect to any ATTi Advertiser, the business or operations of any ATTi Advertiser, or the results of any calls placed to Call Tracking Numbers. ATTi represents and warrants that it has all consents, approvals,
licenses and permissions necessary for ATTi to perform all of its obligations hereunder and for Marchex to exercise all of its rights hereunder; its use of the Marchex Network will not introduce into the Marchex Network any computer virus, Trojan
horse, adware, spyware or other harmful or malicious code that, without limitation, is designed to damage, copy, lock-out, or take control of data, systems, network, hardware or software without knowledge and authorization. 

9.2. Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF
ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO ANY ITEMS OR SERVICES PROVIDED HEREUNDER, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE OR ARISING BY USAGE OF TRADE, COURSE OF DEALING, OR
COURSE OF PERFORMANCE, AND ANY IMPLIED WARRANTY OF NON-INFRINGEMENT. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EACH PARTY ACKNOWLEDGES THAT THE WEBSITES, SERVERS, AND OTHER ITEMS, INCLUDING HARDWARE AND SOFTWARE, USED OR PROVIDED IN
CONNECTION WITH HOSTING SUCH WEBSITES OR PERFORMANCE OF ANY SERVICES HEREUNDER ARE PROVIDED “AS IS.” EACH PARTY FURTHER ACKNOWLEDGES THAT EXCEPT AS OTHERWISE PROVIDED HEREIN, NEITHER PARTY MAKES ANY WARRANTY THAT THE SERVICES IT PROVIDES
HEREUNDER WILL BE FREE FROM BUGS, FAULTS, DEFECTS, OR ERRORS OR THAT ACCESS TO ANY OF THE SERVICES WILL BE UNINTERRUPTED. 
  

	10.	Limitation and Exclusion of Liability. 

 EXCEPT FOR LIABILITIES ARISING FROM
INDEMNIFICATION, BREACH OF CONFIDENTIALITY, OR INFRINGEMENT OR VIOLATION OF THE INTELLECTUAL PROPERTY RIGHTS OR RESTRICTIONS OF THE OTHER PARTY, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES ARISING FROM THIS AGREEMENT, WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOSS OF DATA, REVENUE OR ANTICIPATED PROFITS, OR LOST BUSINESS. *** 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 ***. 

11. Confidentiality. 
 11.1. Use and
Disclosure. Neither Party shall use (except to fulfill the Party’s obligations under this Agreement) or disclose to any third person any Confidential Information disclosed to or obtained by that Party from another Party; provided, however,
that each Party may disclose such Confidential Information to its employees who have a need to know such information and are subject to nondisclosure obligations consistent with those set forth herein. Each Party shall be directly responsible for
any unauthorized use or disclosure of another Party’s Confidential Information by its employees, agents or contractors. 
 11.2.
Exceptions. The restrictions contained in this Section 11 shall not apply to any information that the receiving Party can demonstrate: (a) was publicly available or otherwise known to the receiving Party at the time of
disclosure, (b) subsequently becomes publicly available through no act or omission by the receiving Party or any of its employees, agents or contractors, (c) is or has been independently developed by the receiving Party without violation
of this Agreement, (d) is lawfully obtained by the receiving Party from a third party without any obligation of confidentiality, or (e) is generally made available by the disclosing Party to third parties without any restriction on
disclosure. 
 11.3. Legally Compelled Disclosure. If any Party becomes legally compelled to disclose any Confidential Information of
another Party (whether by judicial or administrative order, applicable law, rule or regulation, or otherwise), that Party shall use all reasonable efforts to provide the other Party with prior notice thereof so that the other Party may seek a
protective order or other appropriate remedy to prevent such disclosure. If such protective order or other remedy is not obtained prior to the time such disclosure is required, the Party required to make the disclosure will only disclose that
portion of such Confidential Information which it is legally required to disclose. 
 11.4. Equitable Relief. The receiving Party
acknowledges and agrees that any breach or threatened breach of the provisions of this Section is likely to cause disclosing Party irreparable harm for which money damages may not be an appropriate or sufficient remedy. The receiving Party therefore
agrees that the disclosing Party (or its Affiliates, as the case may be), is entitled to receive injunctive or other equitable relief to remedy or prevent any breach or threatened breach of this Agreement. Such remedy is not the exclusive remedy for
any breach or threatened breach of this Agreement, but is in addition to all other rights and remedies available at law or in equity. 
  

	12.	Public Announcement. 

 Neither Party shall use or refer to, or consent to any use of or
reference to, the other Party’s name or Mark, including in any advertising, marketing, press release (including to the Internet press, e.g., any blogs) or other public announcement without the other Party’s prior written consent. 

 

	13.	Miscellaneous. 

 13.1. Notice. All notices, requests, demands, claims, and other
communications provided for or permitted under this Agreement shall be in writing and shall be deemed duly given (a) if personally delivered, when so delivered, (b) if mailed, two business days after having been sent by registered or
certified mail, return receipt requested, postage prepaid and addressed to the intended recipient set forth below, (c) if given by facsimile, when such notice or other communication is transmitted to the facsimile number specified below and the
appropriate answer back or telephonic confirmation is received, provided 

  
 11 

 

	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
such notice or other communication is promptly thereafter mailed in accordance with the provisions of clause (b) above, or (d) if sent through an overnight delivery service that
guarantees next day delivery, the day following being so sent. 
  

			
	For ATTi:	  	***
		  	AT&T Interactive
		  	611 N. Brand Blvd., 5th Floor
		  	Glendale, CA 91203
		  	Fax: 818.241.1002
		
	With a copy to:	  	General Counsel
		  	AT&T Interactive
		  	611 N. Brand Blvd., 5th Floor
		  	Glendale, CA 91203
		  	Fax: 818-241-1002
		
	For Marchex:	  	Marchex Sales, Inc.
		  	c/o Marchex, Inc.
		  	Attn: General Counsel
		  	520 Pike Street
		  	Suite 2000
		  	Seattle, WA 98101
		  	Fax: 206.331.3696

 The notice information above of either Party may be changed by giving written notice of the change to the
other Party in accordance with this Section 13.1. 
 13.2. Force Majeure. Neither Party shall be deemed to be in default
of or to have breached any provision of this Agreement as a result of any delay, failure in performance, or interruption of service, resulting directly or indirectly from natural disasters, acts of civil or military authorities, civil disturbances,
wars, fires, transportation contingencies, interruptions in telecommunications, carrier access, distribution, billing, manufacturing or Internet services, other catastrophes or any other occurrences that are beyond such Party’s reasonable
control; provided that the affected Party (a) has given prompt notice of such delay, failure or interruption, (b) has used commercially reasonable efforts to prevent such delays, failures or interruptions, and (c) uses commercially
reasonable efforts to restore performance under this Agreement. Notwithstanding the foregoing, either Party may terminate this Agreement upon written notice to the other Party in the event of non-performance by the other Party for more than sixty
(60) days following the initial delay, failure, or interruption caused by any such “force majeure” occurrence. 
 13.3.
Governing Law and Dispute Resolution. This Agreement will be governed by and construed in accordance with the laws of the State of New York, without reference to its conflicts of laws rules. If any provision of this Agreement is found to be
invalid or unenforceable, that provision will be enforced to the maximum extent permissible and all other provisions of this Agreement will remain in full force and effect. Prior to initiating any formal legal process, each Party shall refer any
claim and dispute to its appropriate representative who has the authority to resolve it. Within ten (10) days of receiving notice of the claim or dispute, the appropriate representative(s) of each Party shall confer to attempt to resolve the
claim or dispute. If a Party intends to be accompanied by or include an attorney when conferring with the other Party, that Party shall give the other Party at least two (2) business days notice of the intention and the other Party may also be
accompanied by or include an attorney. This procedure shall hereinafter be referred to as the “Informal Dispute Resolution Process.” All negotiations that 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
occur during the Informal Dispute Resolution Process will be treated as compromise and settlement negotiations for purposes of applicable state and federal rules of evidence. During the Informal
Dispute Resolution Process, each Party will continue performing its obligations under this Agreement unless otherwise agreed in writing by both Parties. If the representatives of both Parties do not agree upon a resolution within *** after referral
of the matter to them, then either Party may initiate formal legal proceedings. This provision shall not, however, preclude either Party from immediately applying to a court of competent jurisdiction for interim relief if: (a) the claim or
dispute relates to Intellectual Property Rights; or (b) interim relief from a court is necessary to prevent serious and irreparable injury to the Party or to third parties. 

13.4. No Exclusive Remedy. No remedy conferred in this Agreement is intended to be exclusive of any other remedy, and each and every
such remedy shall be cumulative and shall be in addition to every other remedy conferred herein or now or hereafter existing at law or in equity or by statute or otherwise. 

13.5. Independent Contractor/Non-Exclusive Relationship. The Parties acknowledge that the relationship of ATTi and Marchex is that of
independent contractors and that nothing contained in this Agreement shall be construed to place ATTi and Marchex in the relationship of principal and agent, master and servant, partners, or joint venturers. It is expressly understood and agreed
that this Agreement does not grant Marchex an exclusive privilege to provide to ATTi any services of the type described in this Agreement. 

13.6. Integration, Waivers, and Modifications. This Agreement represents the entire and exclusive agreement between ATTi and Marchex
relating to the subject matter of this Agreement and supersedes all prior agreements or understandings, written or oral, relating to the subject matter of this Agreement. No failure or delay on the part of either Party in exercising any right,
power, or remedy under this Agreement shall operate as a waiver, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise or the exercise of any other right, power, or remedy. Unless
otherwise specified, any amendment, supplement, or modification of or to any provision of this Agreement, any waiver of any provision of this Agreement, and any consent to any departure by the Parties from the terms of this Agreement, shall be
effective only if it is made or given in writing and signed by both Parties. 
 13.7. Assignment. Neither Party may assign this
Agreement or any of its rights or obligations hereunder without the prior written consent of the other Party, which consent will not be unreasonably withheld or delayed. Notwithstanding the foregoing, without securing such prior consent, either
Party shall have the right to assign this Agreement and the obligations hereunder to any Affiliate or to any successor of such Party by way of merger, consolidation, reorganization or in connection with the acquisition of at least a majority of the
business and assets of the assigning Party relating to the Agreement, provided that: (a) the assigning Party provides the other Party with written notice when such transaction becomes public; (b) the successor or assignee agrees in writing
to be bound by the obligations set forth herein and is capable of performing its duties under the Agreement; (c) the assigning Party is not in material breach or default of this Agreement at the time of the assignment; and (d) in the case
of an assignment by Marchex, the assignee is not a ATTi Competitor. This Agreement shall be binding on, and shall inure to the benefit of, the authorized successors and assigns of the Parties. Any attempt to assign other than in accordance with this
provision shall be null and void. 
 13.8. Interpretation. No provision of this Agreement is to be interpreted for or against any
Party on the basis that a particular Party or its attorney drafted such provision or on any other basis. 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 13.9. Headings. The headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement. 
 13.10. Counterparts. This Agreement may be
executed in any number of counterparts, each of which will he deemed on original and all of which together will constitute one and the same instrument. A signature received via facsimile or electronically via email shall be as legally binding for
all purposes as an original signature. 
 IN WITNESS WHEREOF, each Party has caused this Pay-For-Call Distribution Agreement to be executed
by Its duly authorized representatives as of the Effective Date. 
  

									
	Marchex Sales, Inc.	 		 	YellowPages.com LLC d/b/a AT&T Interactive
					
	By:	 	 /s/ Brendhan Hight
	 		 	 By:
	 	 /s/ Michael Ballard

	Printed Name: Brendhan Hight	 		 	 Printed Name: Michael Ballard

	Title: Director	 		 	 Title: VP Finance

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT A 

DEFINITIONS 

“Affiliate” means, with respect to a Party, any entity that, directly or indirectly, controls, is controlled by, or is under common control
with such Party; and “control” means the direct or indirect possession of the power to direct or cause the direction of the management and policies of another entity, whether through the ownership of voting securities, by contract or
otherwise. 
 “ATTi Advertiser” means a customer of ATTi or of an Affiliate of ATTi who has purchased an ATTi SEM Product. 

“ATTi Competitor” means the following sub-set of companies with which ATTi or other AT&T companies compete: ***. 

“ATTi SEM Product Listing” means the listing of an ATTi Advertiser who subscribes to the ATTi SEM Product currently known as YPConnect, which
listing includes information about the ATTi Advertiser and includes either a call tracking number or an identifier that is trackable by Marchex. 

“Bankruptcy Event” means either Party (a) files a petition for bankruptcy; (b) has an involuntary petition in bankruptcy filed
against it that is not challenged within five (5) days and dismissed within thirty (30) days; (c) becomes or is declared insolvent; (d) admits in writing its inability to pays its debts as they come due; (e) is the subject
of any other voluntary or involuntary proceeding related to its liquidation, administration, provisional liquidation, insolvency, or the appointment of a receiver or similar officer for it; (f) passes a resolution for its voluntary liquidation;
(g) has a receiver, manager, or similar person appointed over all or substantially all of its assets; (h) makes a general assignment for the benefit of all or substantially all of its creditors; (i) enters into an agreement or
arrangement for the composition, extension, or readjustment of substantially all of its obligations or any class of such obligations; (j) has any significant portion of its assets attached; or (k) experiences an event analogous to any of
the foregoing in any jurisdiction in which any of its assets are situated. 
 “Call Tracking Number” means a unique toll-free
“800” phone number, local phone number, extension or click to call mechanism assigned by Marchex to an ATTi Advertiser and inserted into the ATTi Advertiser’s ATTi SEM Product Listing that enables Marchex to track the call. 

“Charged Call Fee” has the meaning set forth in Section 4.1. 

“Confidential Information” means any information or data provided by one Party (the “Disclosing Party”) to the other Party (the
“Receiving Party”) during the course of performance of this Agreement, including but not limited to: (1) the fact that Confidential Information has been disclosed to a Receiving Party; (2) the existence of or terms and conditions
of this Agreement; and (3) the Disclosing Party’s nonpublic business plans and objectives, financial projections, marketing plans, strategies, forecasts, unpublished financial information, budgets, projections, customer and supplier
identities, characteristics and agreements, marketing materials, logos, and designs, and technical data, patents, trademarks, service marks, trade names, trade dress, copyrights (and pending applications for any such patents, trademarks, service
marks and copyrights), technology, inventions, processes, computer programs, software, source codes, architectures and structures, development tools and instructions, templates, and other trade secrets, intangible assets, and industrial or
proprietary property rights that may or may not be related to the 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 
Disclosing Party’s business, as well as all documentation, media, and other tangible embodiment of or relating to any of the foregoing and all proprietary rights therein of the Disclosing
Party. Confidential Information disclosed in tangible or electronic form may be marked or otherwise identified by Disclosing Party with a legend that it is confidential, but in no event shall the absence of such a mark or legend relieve Receiving
Party of the obligation to treat as Confidential Information any information considered confidential by a person exercising reasonable business judgment. If a Party is unsure whether information it has received from the other Party constitutes
Confidential Information of the other Party, the receiving Party should request clarification from the disclosing Party. 
 “Distribution
Partner” means a third party, including any Affiliate of Marchex that owns or operates a Distribution Partner Channel. 
 “Distribution
Partner Channel” means a website, application, platform, or other distribution channel within the Marchex Network that is owned or operated by a Distribution Partner. 

“Intellectual Property Rights” mean all rights in and to trade secrets, patents, copyrights, trademarks, service marks, logos, trade dress,
know-how, and similar rights of any type under the laws of any governmental authority, domestic or foreign, now known or hereafter developed. 

“Invalid Call” means any call placed to a Call Tracking Number that: ***. 

“Marchex Channel” means a website, application, platform or other distribution channel within the Marchex Network that is owned or operated
directly by Marchex. 
 “Marchex SERPs” means the search results, display pages, and audio results displayed or played to Users of the
Marchex Network. 
 “Out-of-Area” means the circumstance in which a User places a call to a Call Tracking Number and the location of such
User is more than *** from the location of the respective ATTi Advertiser. 
 “Restricted Content” means any content or terms that:
(a) promote or refer to illegal activities (illegal drugs, phishing, terrorism, criminal activities, contests, pyramid schemes or chain letters); (b) promote or refer to alcohol, tobacco, gambling or weapons; (c) constitute
pornographic or obscene material; (d) promote or display excessively graphic or explicit violence; (e) are defamatory or profane; (f) are disparaging to ATTi or any of their advertisers or content and listing providers; (g) are
discriminatory or constitute “hate speech”, whether directed at an individual or a group, and whether based upon the race, sex, creed, national origin, religious affiliation, sexual orientation or language of such individual or group;
(h) promote or contain viruses, worms, corrupted files, cracks or other materials that are intended to or may damage or render inoperable software, hardware or security measures of ATTi, any User, or any other third party; (i) are
otherwise designated by ATTi as unacceptable content from time to time. 
 “Term” has the meaning set forth in Section 7.1.

 “User” means an individual person who uses the Marchex Network. 

	

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT B 

FORMAT FOR CALL METRICS REPORT 

Date of Report: February 8, 2012 

Time Period Covered by Report: January 1, 2012 to January 31, 2012 

*** 

  
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	[***]	Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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