Document:

Amendment No. 2 to Distribution Agreement

 Exhibit 10.11 

AMENDMENT NO. 2 TO DISTRIBUTION AGREEMENT 

AMENDMENT NO. 2 dated as of March 23, 2010 (this “Amendment”), is by and between Verizon Communications Inc., a
Delaware corporation (“Verizon”), and New Communications Holdings Inc. (“Spinco”) to the Distribution Agreement, dated as of May 13, 2009, as amended, (the “Distribution Agreement”) by and
between Verizon and Spinco. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Distribution Agreement, and all references to Articles and Sections herein are references to Articles and Sections of the
Distribution Agreement. 
 In consideration of the premises and the mutual promises herein made, and in consideration of the
agreements herein contained, the parties, intending to be legally bound hereby, agree as follows: 
 1. Amendment to
Section 1.1. The definition of “Blended Customer Contracts” set forth in Section 1.1 of the Distribution Agreement is hereby amended to read in its entirety as follows: 

“Blended Customer Contracts” means Contracts with customers of Verizon or one of its Subsidiaries, in each case to which
Verizon, one of the Contributing Companies or another Subsidiary of Verizon is a party, and in each case which provide for such customers to receive one or more products or services that are offered by the Spinco Business as well as one or more
products or services that are offered by the Verizon Business. 
 2. Amendment to Section 1.1. The definition of
“Contributing Companies” set forth in Section 1.1 of the Distribution Agreement is hereby amended to read in its entirety as follows: 

“Contributing Companies” means Verizon North Inc., a Wisconsin corporation, Verizon Northwest Inc., a Washington
corporation, Verizon West Coast Inc., a California corporation, Contel of the South, Inc., a Georgia corporation, Verizon California Inc., a California corporation, Verizon South Inc., a Virginia corporation, Verizon West Virginia Inc., a West
Virginia corporation, Verizon Virginia Inc., a Virginia corporation, Verizon Enterprise Solutions LLC, a Delaware limited liability company, Verizon Long Distance LLC, a Delaware limited liability company, Verizon Online LLC, a Delaware limited
liability company, Verizon Credit Inc., a Delaware corporation, Verizon Corporate Services Corp., a Delaware corporation, Verizon Business Financial Management Corporation, a Delaware corporation, Verizon Business Network Services Inc., a Delaware
corporation, Verizon Services Corp., a Delaware corporation, Verizon Network Integration Corp., a Delaware corporation, Verizon Select Services Inc. a Delaware corporation and any other Subsidiary of Verizon that either provides 911 or E911 customer
premise equipment sales, service or maintenance or other assets or services in support of 911 or E911 in the Territory or employs Spinco Business Employees (as defined in the Merger Agreement), in each case as of the Closing Date. 

 3. Amendment to Section 1.1. The definition of “Retained
Contract” set forth in Section 1.1 of the Distribution Agreement is hereby amended to read in its entirety as follows: 

“Retained Contract” means (i) any Contract entered into by Verizon or any Subsidiary of Verizon (other than Spinco
or a Spinco Subsidiary), on the one hand, with a non-Affiliate of Verizon, on the other hand, which is used or held for use in the conduct of the Spinco Business as well as the Verizon Business, other than any Blended Customer Contract; and
(ii) any Contract entered into solely between or among Verizon and/or Affiliates of Verizon, other than Transferred Affiliate Arrangements, including, in each case, those Contracts listed in Section 1.1(c) of the Disclosure Letter.

 4. Amendment to Section 1.1. The definition of “Retained Customer Accounts” set forth in
Section 1.1 of the Distribution Agreement is hereby deleted in and removed from Section 1.1 in its entirety. 
 5.
Amendment to Section 1.1. Subparagraph III, following the proviso, of the definition of “Spinco Assets” set forth in Section 1.1 of the Distribution Agreement is hereby amended to read in its entirety as follows:

 III. Any Retained Contracts; 

6. Amendment to Section 1.1. Subparagraph X, following the proviso, of the definition of “Spinco Assets” set
forth in Section 1.1 of the Distribution Agreement is hereby amended to read in its entirety as follows: 
  

	 	X.	the remote switch in Knotts Island, North Carolina as described below where the access lines shall continue to be served by Verizon South Inc. from the host CLLI
PRANVAXBDS0 in Shipps Corner, Virginia after the Distribution Date; 

  

															
	 Base CLLI
	 	Remote CLLI	 	Switch Type	 	Switch Name	 	AAIS Wire Center
Name	 	NPA	 	NXXs	 	Rate Center
	PRANVAXBDS0	 	KNISNCXARS1	 	RSO	 	SHIPPS CORNER	 	SHIPPS CORNER	 	252	 	429	 	Knotts Island

 7. Amendment to
Section 1.1. Subsection (i) of the definition of “Spinco Assets” set forth in Section 1.1 of the Distribution Agreement is hereby amended to include new subparagraphs I as follows: 

 

	 	(I)	any Telephone Plant and other tangible assets together with Contracts, ILEC customer relationships, LD customer relationships and Verizon Online LLC broadband Internet
access services customer relationships, if any, for any customer in the local franchise areas served by the facilities described below: 

the remote switch and pair gains in Crows-Hematite, Virginia as described below where access lines shall be served by Spinco or its
Affiliate from the host CLLI WSSPWVDRRS1 in White Sulphur Spings, West Virginia after the Distribution Date. 
  

 2 

															
	 Base CLLI
	  	 Remote CLLI
	  	 Switch Type
	  	 Switch Name
	  	 AAIS Wire

Center Name
	  	NPA	  	NXXs	  	 Rate Center

	 WSSPWVDRRS 1
	  	ALGHVAU0016	  	RS1	  	WHITE SULPHUR SPRINGS	  	WHITE SULPHUR SPRINGS	  	540	  	559	  	Crows Hematite
	 WSSPWVDRRS 1
	  	ALGHVAU0001	  	RS1	  	WHITE SULPHUR SPRINGS	  	WHITE SULPHUR SPRINGS	  	540	  	559	  	Crows Hematite
	 WSSPWVDRRS 1
	  	ALGHVAU0002	  	RS1	  	WHITE SULPHUR SPRINGS	  	WHITE SULPHUR SPRINGS	  	540	  	559	  	Crows Hematite
	 WSSPWVDRRS 1
	  	CTVNVAAQ	  	RS1	  	WHITE SULPHUR SPRINGS	  	WHITE SULPHUR SPRINGS	  	540	  	559	  	Crows Hematite

 8. Amendment to
Section 1.1. The following subsections of the definition of “Spinco Business” set forth in Section 1.1 of the Distribution Agreement are hereby amended to include new subparagraphs as follows: 

Subsection (ii) prior to the proviso: 

(E) The provision by Verizon Services Corp. of bulk multi-channel video services, bulk broadband Internet access services and other voice,
data and FTTP services at multi-family properties and the provision of joint marketing services with property owners of multi-family properties in the Territory on behalf of certain identified affiliated operating companies; and 

(F) The provision by Verizon Long Distance LLC or Verizon Enterprise Solutions LLC of terminating central office Toll-Free switched long
distance services for small business customers, where the Toll-Free telephone number is associated with a Billing Telephone Number (BTN) that is served by a wirecenter that is otherwise a Spinco Asset. 

Subsection (ii) following the proviso: 

(R) Toll free long distance services, utilizing a 4-digit PIN number in conjunction with a shared Verizon Long Distance 800/888/877 number
(commonly referred to as PTFS services); and 
 (S) Toll Free long distance customers where the associated Billing Telephone
Number (BTN) is resident in the remaining Verizon territory without regard to where the actual terminating Toll-Free Switch resides, it being understood, however, that the local service revenue derived from these customers is part of the Spinco
Business. 
  

 3 

 9. Amendment to Section 1.1. The definition of “Spinco Debt
Expenses” set forth in Section 1.1 of the Distribution Agreement is hereby amended to read in its entirety as follows: 

“Spinco Debt Expenses” means the aggregate amount of all fees and expenses payable to legal advisors and accountants of
Spinco or Verizon incurred in connection with the Special Payment Financing, it being agreed that any other costs, fees or expenses associated with the Special Payment Financing shall be deemed part of the Special Payment Financing and shall not
constitute Spinco Debt Expenses (nor, for the avoidance of doubt, Distribution Date Indebtedness) and shall be borne by Spinco without reimbursement by Verizon. 

10. Amendment to Section 1.1. The definition of “Territory” set forth in Section 1.1 of the
Distribution Agreement is hereby amended to read in its entirety as follows: 
 “Territory” means the local
franchise area of the Contributing Companies in the states of Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin, the franchise areas of Verizon West Coast Inc.
and the franchise areas in California served by the following wire centers and the related microwave facilities described below: 
  

															
	 Base CLLI
	  	 Remote CLLI
	  	 Switch Type
	  	 Switch Name
	  	 AAIS Wire Center
Name
	  	NPA	  	NXXs	  	 Rate Center

	 BLYTCAXF92K
	  	        	  	DMS100	  	BLYTHE	  	BLYTHE	  	760	  	921,
922	  	Blythe
	 BLYTCAXF92K
	  	BLYTCABJRL0	  	ANODE	  	INTAKE & RIVERIA	  	BLYTHE	  	760	  	921,
922	  	Blythe
	 BLYTCAXF92K
	  	BLYTCAXHRL1	  	OPM	  	RIPLEY #4	  	BLYTHE	  	760	  	921,
922	  	Blythe
	 BLYTCAXF92K
	  	BLYTCABARL0	  	ANODE	  	FLORENCE & HOBSON	  	BLYTHE	  	760	  	921,
922	  	Blythe
	 BLYTCAXF92K
	  	BLYTCACRRL0	  	AFC-RSC	  	COLORADO RIVER UMC	  	BLYTHE	  	760	  	921,
922	  	Blythe
	 BLYTCAXF92K
	  	BLYTCAXGRS1	  	RSC	  	NORTH RIPLEY	  	BLYTHE	  	760	  	921,
922	  	Blythe
	 BLYTCAXF92K
	  	PLVRCAXFRS1	  	RSC	  	PALO VERDE	  	PALSVDE	  	760	  	854	  	Palo Verde
	 GRDVNVXADS0
	  	WDFRCAXFRS1	  	RSC	  	WOODSFORD-ALPINE	  	ALPINE	  	530	  	694	  	Alpine
	 GRDVNVXADS0
	  	PYVLCAAARL0	  	ANODE-UE	  	ST HWY 88 ANODE-UE	  	ALPINE	  	530	  	694	  	Alpine
	 GRDVNVXADS0
	  	WDFRCAAARL0	  	ANODE	  	MARKLEEVILLE	  	ALPINE	  	530	  	594	  	Alpine
	 GRDVNVXADS0
	  	CEVLCAXFRS6	  	RSC	  	COLEVILLE	  	COLEVLLE	  	530	  	495	  	Coleville
	 PRKRAZXCDS0
	  	BGRVCAXFRLO	  	AFC-LET	  	BIG RIVER LET	  	EARP	  	760	  	665	  	Earp
	 PRKRAZXCDS0
	  	HVSUCAXFRS1	  	RSLE	  	HAVASU LANDING	  	HAVASU	  	760	  	858	  	Havasu Lake
	 BKMTCAXFQ01
	  		  	MICROWAVE	  	BLACK METAL MOUNTAIN	  	PRDMAZXC	  		  		  	
	 BMMTCARSQ02
	  		  	MICROWAVE	  	BIG MARIA MOUNTAIN	  	BLYTCAXF	  		  		  	

 And also including the franchise areas in Virginia served by the following pair gains or remote
CLLIs in Crows-Hematite, Virginia as described below where access lines shall be served by Spinco or its Affiliate from the host CLLI WSSPWVDRRS1 in White Sulphur Spings, West Virginia after the Distribution Date 

 

 4 

															
	 Base CLLI
	  	 Remote CLLI
	  	 Switch Type
	  	 Switch Name
	  	 AAIS WireCenter Name
	  	NPA	  	NXXs	  	 Rate Center

	 WSSPWVDRRS1
	  	ALGHVAU0016	  	RS1	  	WHITE SULPHUR SPRINGS	  	WHITE SULPHUR SPRINGS	  	540	  	559	  	Crows Hematite
	 WSSPWVDRRS1
	  	ALGHVAU0001	  	RS1	  	WHITE SULPHUR SPRINGS	  	WHITE SULPHUR SPRINGS	  	540	  	559	  	Crows Hematite
	 WSSPWVDRRS1
	  	ALGHVAU0002	  	RS1	  	WHITE SULPHUR SPRINGS	  	WHITE SULPHUR SPRINGS	  	540	  	559	  	Crows Hematite
	 WSSPWVDRRS1
	  	CTVNVAAQ	  	RS1	  	WHITE SULPHUR SPRINGS	  	WHITE SULPHUR SPRINGS	  	540	  	559	  	Crows Hematite

 but excluding the local
franchise area served by the remote switch in Knotts Island, North Carolina as described below where the access lines shall continue to be served by Verizon South Inc. from the host CLLI PRANVAXBDS0 in Shipps Corner, Virginia after the Distribution
Date. 
  

															
	 Base CLLI
	  	 Remote CLLI
	  	 Switch Type
	  	 Switch Name
	  	 AAIS Wire Center Name
	  	NPA	  	NXXs	  	 Rate Center

	 PRANVAXBDS0
	  	KNISNCXARS1	  	RSO	  	SHIPPS CORNER	  	SHIPPS CORNER	  	252	  	429	  	Knotts Island

 11. Amendment and
Restatement of the Disclosure Letter to the Distribution Agreement. The Disclosure Letter to the Distribution Agreement is hereby amended and restated in this entirety as set forth in the Amended and Restated Disclosure Letter attached hereto
and incorporated by this reference. 
 12. Amendment to Section 2.1. Subsection (a) of Section 2.1 is
hereby amended to read in its entirety: 
 (a) Subject to Section 2.1(b) and, in the case of Information, Article VII, on
or prior to the Distribution Date, Verizon shall take or cause to be taken all actions necessary to cause the transfer, assignment, delivery and conveyance of (i) the Non-ILEC Spinco Assets and the Non-ILEC Spinco Liabilities to the
Non-ILEC Spinco Subsidiary, (ii) the ILEC Spinco Assets and the ILEC Spinco Liabilities to the ILEC Spinco Subsidiaries and (iii) the ILEC Spinco Subsidiaries to Spinco (including by contributing stock of an entity holding
one or more ILEC Spinco Subsidiaries); provided that the Spinco Assets described in subparagraph (I) of subsection (i) of the definition of Spinco Assets shall be transferred pursuant to a separate agreement between Frontier and
Verizon to the extent necessary or desirable for regulatory reasons. Spinco shall assume or cause the applicable Spinco Subsidiaries to assume, and thereafter timely pay, perform and discharge, when and as due, or cause the applicable Spinco
Subsidiaries to thereafter timely pay, perform and discharge, when and as due, all of the Spinco Liabilities. 
  

 5 

 13. Amendment to Section 2.4(f). Section 2.4(f) of the Distribution
Agreement is hereby amended to read in its entirety as follows: 
 “(f) Verizon shall pay all Spinco Debt Expenses
(i) on the Closing Date or (ii) on such subsequent date when the fees and expenses are payable to legal advisors or accountants in connection with, the Special Payment Financing.” 

14. Amendment to Article 6. Article 6 is hereby amended to add the following sections as follows: 

Section 6.9 Cross Border Customers. 

On the Distribution Date, an Affiliate or Affiliates of Verizon shall enter into agreements at market rates and terms, to sell special
access circuits to New Communications of the Southwest Inc. to serve customers in Montgomery Pass, Nevada and Sweetwater, Nevada rehomed to Gardenville, Nevada who are currently served by the switch in Bishop, California. 

Section 6.10 Leases. 

(a) On the Distribution Date, an Affiliate or Affiliates of Spinco shall enter into a lease or leases with an Affiliate or Affiliates of
Verizon on standard commercial terms for the facilities at 8001 W. Jefferson Blvd., Fort Wayne, Indiana, according to which Verizon shall lease approximately 12,600 square feet from Spinco for a term of one year after the Distribution Date for an
annual rent of $164,000 plus a pro-rata share of taxes, utilities and operating expenses. 
 (b) On the Distribution Date, an
Affiliate or Affiliates of Spinco shall enter into a lease or leases with an Affiliate or Affiliates of Verizon on standard commercial terms for the facilities at: 
  

	 	•	 	 2200 W. Airfield Dr., DFW Airport, Texas, according to which Spinco shall lease approximately 42,000 square feet from Verizon for a term of one year
after the Distribution Date, such lease to have four, one-year renewal options at Spinco’s election, for an annual rent of $600,000 plus a pro-rata share of taxes, utilities and operating expenses. 

 

	 	•	 	 3632 Roxboro Rd., Durham, North Carolina, according to which Spinco shall lease approximately 2,500 square feet for Network Equipment from Verizon for
a term of five years after the Distribution Date for an annual rent of $63,000 plus a pro-rata share of taxes, utilities and operating expenses. 

  

	 	•	 	 2655 Warrenville Rd., Downers Grove, Illinois, according to which Spinco shall sub-lease approximately 3,527 square feet from Verizon for a term of one
year after the Distribution Date for an annual rent of $61,000 plus a pro-rata share of taxes, utilities and operating expenses. 

  

 6 

 15. Confirmation of Distribution Agreement. Other than as expressly modified pursuant
to this Amendment, all provisions of the Distribution Agreement remain unmodified and in full force and effect. 
  

 7 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the first date
above written. 
  

			
	 VERIZON COMMUNICATIONS INC.

		
	 By:
	 	 /s/ John W. Diercksen

	 Name:
	 	John W. Diercksen
	 Title:
	 	Executive Vice President – Strategy, Planning and Development
	
	 NEW COMMUNICATIONS HOLDINGS INC.

		
	 By:
	 	 /s/ J. Goodwin Bennett

	 Name:
	 	J. Goodwin Bennett
	 Title:
	 	Vice President
		 	

 CONSENT TO AMENDMENT OF DISTRIBUTION AGREEMENT 

Frontier Communications Corporation, by its authorized representative, hereby consents to Amendment No. 2 to the Distribution
Agreement. 
  

			
	 By:
	 	 /s/ Donald R. Shassian

	 Name:
	 	 Donald R. Shassian

	 Title:
	 	 Chief Financial Officer

 

 8Agreement Regarding Intellectual Property Matters

 Exhibit 10.12 

AGREEMENT REGARDING INTELLECTUAL PROPERTY MATTERS 

This AGREEMENT REGARDING INTELLECTUAL PROPERTY MATTERS (this “IP Matters Agreement”) is effective as of March 23, 2010 (the
“Effective Date”) and is among Verizon Communications Inc., a Delaware corporation (“Verizon”), New Communications Holdings Inc., a Delaware corporation, (“Spinco”), and
Frontier Communications Corporation, a Delaware corporation (the “Company”). Verizon, Spinco, and Company, hereinafter each referred to individually as a “Party” or collectively as the
“Parties”. 
 WHEREAS, Verizon, Spinco and Company have entered into an Agreement and Plan of Merger, dated as of
May 13, 2009, as amended (the “Merger Agreement”); and 
 WHEREAS, Verizon and Spinco have entered into a
Distribution Agreement, dated as of May 13, 2009, as amended (the “Distribution Agreement”); and 
 WHEREAS, the
Parties desire to enter into certain arrangements to implement the provisions of the Merger Agreement and the Distribution Agreement; and 

WHEREAS, pursuant to the provisions of the Merger Agreement, Verizon agreed to cause Verizon Information Technologies LLC
(“Licensor”) to execute a Software License Agreement with Spinco and Company (“Software License Agreement”), which among other things, would provide that Licensor will grant, or cause its Affiliates to
grant, a limited license to Licensee (defined below) for certain Software (as defined in the Software License Agreement), as such terms and provisions are defined in the Software License Agreement; and 

WHEREAS, pursuant to the provisions of the Merger Agreement, Verizon and Company covenanted to work in good faith to complete Schedule A of the Software
License Agreement; and 
 WHEREAS, notwithstanding certain provisions in the Merger Agreement and certain provisions contemplated by the
Software License Agreement, the Parties desire to agree that Verizon will use commercially reasonable efforts to obtain (including by transfer or assignment) licenses for all Required Third Party Software (hereinafter defined), and that Company will
compensate Verizon for certain license fees and other costs related to Required Third Party Software, and assume liability to pay related maintenance fees for all Required Third Party Software after Closing, as described herein; and 

WHEREAS, the Parties wish to formalize a process to address other vendor arrangements reasonably required to prepare Spinco for post-Closing operation.

 NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 

 ARTICLE I 

SOFTWARE LICENSE AGREEMENT 
  

	1.1	On the Closing Date, Spinco, Company and Licensor will execute the Software License Agreement in the form attached hereto as Exhibit 1 (together with all SLA
Schedules (as defined below) attached to the Software License Agreement). 

 ARTICLE II 

THE SOFTWARE LICENSE AGREEMENT AND REVISED SCHEDULES 
  

	2.1	Company and Licensor agree that the schedules listed in this Section 2.1 (collectively, “SLA Schedules”) shall be the schedules to be
attached to the Software License Agreement. 

  

	 	•	 	 Schedule A (Maintenance Agreement); 

	 	•	 	 Schedule B (Listing of Verizon Proprietary Software, identified by category, and the proportion of the Annual Maintenance Fee applicable to each
category of the Verizon Proprietary Software) (“Software”); 

	 	•	 	 Schedule C (Listing of Qualified Equipment). Schedule C is comprised of Required Hardware and Required Third Party Software as set forth in the
following sub-schedules: 

	 	¡	 	 Schedule C-1: Listing of hardware (“Required Hardware”); 

	 	¡	 	 Schedule C-2 & C-3: Listing of Third Party Software (“Required Third Party Software”), consisting of the following:

	 	•	 	 Schedule C-2: List, subject to updating as described below, of embedded Required Third Party Software at the Ft. Wayne Data Center
(“Embedded Software”); and 

	 	•	 	 Schedule C-3: List, subject to updating as described below, of newly acquired or reused Required Third Party Software primarily installed at the
Ft. Wayne Data Center (“New Software”). 

 The Parties agree and acknowledge that Schedules B
and C to the Software License Agreement may be reasonably updated from time to time by Verizon upon written notice until the Closing to reflect the actual Software delivered and Qualified Equipment required. Schedules C-2 and C-3, as updated,
will set forth a list of all Verizon Third Party Software necessary, when used with the Software, to provide functionality to the Fort Wayne Data Center substantially similar to, but no less favorable to, the Spinco Business than that which the
Spinco Business received from Verizon and its Affiliates as of the date of the Merger Agreement 
  

	2.2	Notwithstanding anything to the contrary in the Software License Agreement, which is to be executed at Closing, or the Merger Agreement, the Parties intend that this
Agreement shall control if there is any conflicting provisions in (a) the Software License Agreement, or (b) Section 7.8(h) or (i) of the Merger Agreement. 

 ARTICLE III 

REQUIRED THIRD PARTY SOFTWARE 
  

	3.1	The Parties agree that the assignment, transfer, replication and/or other acquisition of a license of any Required Third Party Software provided pursuant to this IP
Matters Agreement and/or the Software License Agreement shall be to New Communications Corporate Services Inc. (“Licensee”). 

  

	3.2	Notwithstanding Company’s obligations under the originally proposed form of Software License Agreement to obtain all Required Third Party Software, Licensor has
acquired for, or where permitted, has assigned or transferred to Licensee, or has used and shall continue to use commercially reasonable efforts prior to and for a period of six (6) months after the Closing, to acquire for, or assign or
transfer to Licensee, rights and licenses to the Required Third Party Software identified on Schedules C-2 and C-3, to allow use and operation of the Software in the Territory, which rights and licenses shall be substantially similar (except
as otherwise stated in Schedule C-2 or C-3) to those rights and/or licenses (including, without limitation scope of current use and term) held by Verizon and/or Licensor prior to Closing. For purposes of this Article III of this IP Matters Agreement
and by way of example only, use of “commercially reasonable efforts” shall require efforts that a prudent person desirous of achieving a result would use in similar circumstances to achieve that result as expeditiously as possible;
provided, that “commercially reasonable efforts” does not require Verizon to agree to any terms, conditions or commitments that: (a) are contrary to Verizon’s standard purchasing practices or corporate policies, (b) have
more than a minor adverse impact on Verizon’s retained operations (for example, require an exclusive purchase arrangement), or (c) in the case of consents for assignments or transfers, require more than a nominal, administrative payment or
other compensation to the vendor. If Licensor has met its obligation to use commercially reasonable efforts (as described above) to obtain licenses or other rights for Licensee for the Required Third Party Software, but is unable to procure such
right or license for use of the Required Third Party Software (or, post-Closing, resolve a vendor claim as described above), the Parties shall follow an agreed upon process to resolve the matter. Licensor shall use reasonable efforts to verify that
licenses acquired, assigned or transferred under this Section 3.2 to do not violate the “Big Rules” described in Exhibit 3. 

  

	3.3	The Parties agree that the sole consideration to be given by Company to Verizon for the use of commercially reasonable efforts to obtain assignment, transfer,
replication or other acquisition of licenses for any Required Third Party Software or the actual assignment, transfer, replication or other acquisition of such licenses, shall be the payments set forth in Article V hereof, and the obligations and
agreements set forth elsewhere in this IP Matters Agreement. Without limitation of the foregoing, Licensee shall be obligated to comply with the terms and conditions of the applicable agreements with the Third Party licensor of the Required Third
Party Software with respect to any Required Third Party Software license assigned to, acquired for or otherwise granted to Licensee hereunder. 

	3.4	The Parties further acknowledge that for expediency, efficiency or other purposes, Licensor may elect to provide other Third Party Software necessary for the operation
of Spinco (“Other Third Party Software”), not within the scope of “Required Third Party Software,” for use by Licensee or Spinco, even though under the applicable agreements, Licensor is not obligated to provide
such other Third Party Software. If Licensor wishes to receive reimbursement for such licenses, Licensor shall follow the process identified in Exhibit 2 to this IP Matters Agreement. Licensee agrees to use reasonable efforts to comply with all
lawful, commercially reasonable actions directed or requested by Licensor in connection with Other Third Party Software provided by Licensor, within a reasonable time of receiving written notice of such instructions from Licensor.

 ARTICLE IV 

DESKTOP SOFTWARE 
  

	4.1	Company or (post-Closing) Licensee shall be solely and wholly responsible for obtaining any and all licenses required to use the software that is resident on any
personal computer transferred to Licensee (“Desktop Software”). Within thirty (30) days after execution of this Agreement, Verizon will provide Company with a list of all or substantially all types of Desktop Software
resident on the relevant personal computers. 

  

	4.2	The Parties agree that (post-Closing) Licensee shall be solely and wholly responsible for securing any and all rights and licenses under Third Party Intellectual
Property Rights necessary to operate such Desktop Software. 

  

	4.3	Notwithstanding the foregoing, Licensor may deliver Desktop Software to Company/Licensee. In the event Licensor provides Desktop Software to Company/Licensee, Licensee
shall be responsible for either obtaining licenses for Desktop Software as delivered and for any updates to same or taking such other action as may be required to mitigate any claim or action against Licensor and its Affiliates in connection with
delivery of Desktop Software to Licensee. 

 ARTICLE V 

COMPENSATION AND REIMBURSEMENT 
  

	5.1	In consideration for Verizon’s acquisition and other performance under Section 3.2 of this Agreement (and the assignment/transfer at Closing), Company shall
pay Verizon on the Closing Date the sum of $105,000,000 by wire transfer to an account specified by Verizon. 

	5.2	Company and/or (post-Closing) Licensee shall be responsible for all maintenance and support of any Required Third Party Software on and after the Closing. Where
Licensor has pre-paid maintenance and support for Required Third Party Software that as of the Closing Date has been assigned or transferred to, or replicated, or otherwise acquired for the benefit of Licensee or Spinco, and provided Licensor
provides proof of such pre-payment to the Company, Company shall reimburse Verizon, on a pro-rata basis, for such portions of the maintenance and support costs that extend after the Closing. Where Licensor has committed to pay for maintenance and
support for Required Third Party Software that as of the Closing Date has been assigned or transferred to, or replicated, or otherwise acquired for the benefit of Licensee or Spinco, and provided Licensor provides proof of such commitment to the
Company, Licensee shall either pay the Third Party provider of maintenance and support directly (or at Verizon’s request where it continues to make payments to the provider, reimburse Verizon) on a pro-rata basis, for such portions of the
maintenance and support costs that extend after the Closing. Company agrees that Verizon and Licensor’s agreements with Third Parties for maintenance of certain Required Third Party Software may be reduced to reflect such assignments or
transfers to, or replications, or other acquisitions for the benefit of Spinco or Licensee. If Third Parties require an agreement directly with Licensee for the maintenance of Required Third Party Software, Licensee will execute such separate
agreement and assume responsibility for such maintenance fees commencing on the Closing Date. Company agrees that if Third Parties refuse to cooperate with Verizon or the Licensor to reduce Verizon’s or the Licensor’s maintenance
obligations to reflect Required Third Party Software assigned or transferred to or replicated or otherwise acquired for the benefit of Licensee or Spinco, or enter into agreements with Verizon or Licensor for allocated maintenance fees for Spinco or
Licensee for maintenance covering the Required Third Party Software, Company and/or Licensee shall, with respect to maintenance services which Licensee receives indirectly through Verizon or Licensee, promptly reimburse Verizon for payments of
maintenance amounts reasonably allocable, as determined by mutual agreement of Verizon and Company, to the Required Third Party Software assigned or transferred to or replicated or otherwise acquired for the benefit of Licensee or Spinco, with the
understanding that Licensee shall not be required to pay twice for the same maintenance service. Effective as of execution of this Agreement, the Company and Verizon have agreed to use the process set forth in Exhibit 2 to handle maintenance service
transactions for Required Third Party Software. 

  

	5.3	Company and/or (post-Closing) Licensee shall be responsible for all term, recurring “right to use,” or monthly license charge licenses for Required Third
Party Software associated with the period after Closing. For pre-paid or pre-committed term, recurring “right to use” or monthly license charge licenses and other service arrangements not covered by Section 5.2, above, effective as of
execution of this Agreement, the Company and Verizon have agreed to use the process set forth in Exhibit 2 to handle such service transactions. 

 ARTICLE VI 

IMG AGREEMENT 
  

	6.1	On the Effective Date of this IP Matters Agreement, Company and Verizon Information Technologies LLC have entered into the Interactive Media Guide Services Agreement
(“IMG Agreement”). Such IMG Agreement shall constitute a Transaction Agreement for the purposes of Section 8.2 and 8.3 of the Merger Agreement. In the event of any conflict between the terms of the IMG Agreement and the
final terms of the FS Software License Agreement, the IMG Agreement shall control. 

 ARTICLE VII 

MISCELLANEOUS 
  

	7.1	Capitalized terms used herein and not defined herein shall have the meanings assigned to them in the Merger Agreement or the Software License Agreement.

  

	7.2.	This IP Matters Agreement and its attachments shall constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede
all previous negotiations, commitments and writings with respect to such subject matter. In the event of any conflict between the terms of this IP Matters Agreement as to the subject matter stated herein and the proposed or final terms of the
Software License Agreement, this IP Matters Agreement shall control. 

  

	7.3	This IP Matters Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to the conflicts of law
principles thereof. 

  

	7.4	This IP Matters Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one
agreement binding on the Parties hereto, notwithstanding that not all Parties are signatories to the original or the same counterpart. 

  

	7.5	EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE)
ARISING OUT OF OR RELATING TO THIS IP MATTERS AGREEMENT OR THE ACTIONS OF THE PARTIES HERETO IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF. 

 

	7.6	 THE PARTIES HERETO AGREE THAT IRREPARABLE DAMAGE WOULD OCCUR IN THE EVENT THAT ANY OF THE PROVISIONS OF THIS IP MATTERS AGREEMENT WERE NOT PERFORMED IN
ACCORDANCE WITH THEIR SPECIFIC TERMS OR WERE OTHERWISE BREACHED. IT IS ACCORDINGLY AGREED THAT THE PARTIES 

	 	
HERETO SHALL BE ENTITLED TO AN INJUNCTION OR INJUNCTIONS TO PREVENT BREACHES OF THIS IP MATTERS AGREEMENT AND TO ENFORCE SPECIFICALLY THE TERMS AND PROVISIONS OF THIS IP MATTERS AGREEMENT IN ANY
FEDERAL COURT LOCATED IN THE STATE OF NEW YORK OR, IF SUCH FEDERAL COURTS DO NOT HAVE SUBJECT MATTER JURISDICTION, OF ANY NEW YORK STATE COURT, THIS BEING IN ADDITION TO ANY OTHER REMEDY TO WHICH THEY ARE ENTITLED AT LAW OR IN EQUITY. IN ADDITION,
EACH OF THE PARTIES HERETO (A) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF ANY FEDERAL COURT LOCATED IN THE STATE OF NEW YORK OR, IF SUCH FEDERAL COURTS DO NOT HAVE SUBJECT MATTER JURISDICTION, OF ANY NEW YORK STATE COURT IN THE
EVENT ANY DISPUTE ARISES OUT OF THIS IP MATTERS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, (B) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY
SUCH COURT AND (C) AGREES THAT IT WILL NOT BRING ANY ACTION RELATING TO THIS IP MATTERS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS IP MATTERS AGREEMENT IN ANY COURT OTHER THAN A FEDERAL COURT SITTING IN THE STATE OF NEW YORK OR,
IF SUCH FEDERAL COURTS DO NOT HAVE SUBJECT MATTER JURISDICTION, A NEW YORK STATE COURT. THE PARTIES HEREBY AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING AS MAY BE PERMITTED BY LAW, SHALL BE VALID AND
SUFFICIENT SERVICE THEREOF AND HEREBY WAIVE ANY OBJECTIONS TO SERVICE ACCOMPLISHED IN THE MANNER HEREIN PROVIDED. 

LICENSOR AND ITS AFFILIATES DISCLAIM ALL WARRANTIES, EXPRESS, IMPLIED AND STATUTORY, WITH RESPECT TO ANY SOFTWARE OR SERVICES PROVIDED
HEREUNDER, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT. NOTWITHSTANDING THE FOREGOING, LICENSOR AGREES TO USE COMMERICALLY REASONABLE EFFORTS TO PASS THROUGH
TO LICENSEE, WHERE PERMITTED, VENDOR WARRANTIES AS TO REQUIRED THIRD PARTY SOFTWARE OR OTHER THIRD PARTY SOFTWARE ACQUIRED, ASSIGNED OR TRANSFERRED UNDER THIS AGREEMENT. 

NEITHER OF THE PARTIES OR THEIR RESPECTIVE AFFILIATES SHALL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, CONSEQUENTIAL OR INDIRECT DAMAGES OF
ANY KIND (INCLUDING DAMAGES FOR INTERRUPTION OF BUSINESS, LOSS OF PROFITS, OR THE LIKE) IN CONNECTION WITH THIS AGREEMENT REGARDLESS OF THE FORM OF ACTION WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT PRODUCT LIABILITY OR ANY OTHER LEGAL
OR EQUITABLE THEORY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have executed this
IP Matters Agreement as of the date first above written. 
  

			
	VERIZON COMMUNICATIONS INC.
		
	By:	 	/s/ John W. Diercksen
		 	 Name: John W. Diercksen

Title: EVP- Strategy, Planning & Development

 

			
	NEW COMMUNICATIONS HOLDINGS INC.
		
	By:	 	/s/ J. Goodwin Bennett
		 	 Name: J. Goodwin Bennett

Title: Vice President

  

			
	FRONTIER COMMUNICATIONS CORPORATION
		
	By:	 	/s/ Donald R. Shassian
		 	 Name: Donald R. Shassian

Title: CFO

 EXHIBIT 1 

SOFTWARE LICENSE AGREEMENT (as revised) 

SLA Schedules 
  

	 	•	 	 Schedule A (Maintenance Agreement) 

  

	 	•	 	 Schedule B (Listing of Software, identified by category, and the proportion of the Annual Maintenance Fee applicable to each category of the
Software) 

  

	 	•	 	 Schedule C-1 (Listing of Required Hardware) 

  

	 	•	 	 Schedule C-2 (Listing of Embedded Software) 

  

	 	•	 	 Schedule C-3 (List of New Software) 

 EXHIBIT 2 

1) Thresholds. For each contemplated agreement/commitment for the purchase of software licenses (except for perpetual licenses that are
Required Third Party Software subject to Section 3.2), software support/maintenance services or IT hardware/equipment services required to set up the Ft. Wayne datacenter or Spinco generally: 

(A) Verizon will accept a
3rd party proposal received on or after the Effective Date
of this IP Matters Agreement (“Proposal”), on Licensee’s behalf and provide notice to Company in the ordinary course if: 

(i) the Proposal covers: 

(a) term or RTU software licenses, software support/maintenance services, or IT hardware/equipment services with a term of one year or
less, or 
 (b) perpetual software licenses (for other than Required Third Party Software covered by Section 3.2),

 and in either case (a) or (b), the total cost of the proposal to the Company is $100K or less; or 

(ii) the Proposal covers term, recurring “right to use,” or monthly license charge software licenses, software
support/maintenance services, or IT hardware/equipment services with a term greater than one year and the total cost of the proposal to the Company is $50K or less. 

(B) If the Proposal exceeds the threshold listed above or is contrary to the “Big Rules” listed in Exhibit 3: 

(i) Verizon will initially delay entering into a Proposal on Licensee’s behalf and instead provide to Company, a copy of the
Proposal document (including the proposed contract, if available), a statement indicating Verizon’s good faith belief as to whether the service or license is required pre-Closing (vs. on or after Closing), a description of how the license or
service is used in the business. If the Proposal contains multiple, alternative options, Verizon will identify which alternative will be accepted as a default (which will typically be the alternative involving lowest cost and/or shortest duration);

 (ii) Company shall have 7 calendar days (as a default) to consider the Proposal, with three possible outcomes: 

 

	 	(a)	 in the event that no valid objection is received within 7 calendar days (if the
7th day is a weekend, the 7 days is extended until COB the
next working day), Verizon may sign without further action (Company may also affirmatively advise Verizon that it has no objection); or 

	 	(b)	Company issues a written objection as follows: 

(1) if the service or license is required pre-Closing (based on Verizon’s statement), Company may object only by representing: A)
that it has the rights and licenses Verizon requires pre-Closing, or the services required pre-Closing, and can and will lawfully extend those rights, licenses and services to Verizon pre-Closing, or B) that as of the Closing it has or will have the
rights and licenses or services covered by the proposal; or 
 (2) if the service or license is not required pre-Closing (based
on Verizon’s statement), by representing that as of the Closing, it has or will have the rights and licenses or services covered by the proposal. 

In either case (1) or (2), Company relieves Verizon from any obligations with respect to the rights, licenses and/or services in
the proposal, and Company will indemnify and hold Verizon harmless from any claims, losses, etc., arising from breach of Company’s representations set forth above, or 

(3) that the Proposal violates one or more of the “Big Rules” and Company is unwilling to waive the violation, except that
Company may not object to a Proposal on the basis that includes minimum purchase commitments or “take or pay” provisions if they are reasonable in relation to function or purpose sought to be accomplished by the Proposal. {for example, if
the objective is to get licenses for 20 call center terminals and the vendor positions the Proposal as a “minimum purchase commitment” for 20 licenses or a take or pay based on a 20 license scope} 

 

	 	(c)	if the Proposal exceeds $500,000 and Company has a good faith belief that the vendor will consider a counter-proposal from Company, then Company may issue an objection
which A) represents the foregoing conditions are met, and (B includes the counter-proposal, in which case Verizon shall promptly provide the counter-proposal to the vendor and wait three (3) business days for an acceptance by the vendor. If no
acceptance by the vendor occurs by the end of the three (3) day period, then Verizon may accept the prior (default) proposal from the vendor. 

Although the default period for consideration by Company of a vendor proposal is 7 calendar days, in the case where the service or license is required
pre-Closing (based on Verizon’s statement), and Verizon requests a shorter consideration period, Company shall work in good faith with Verizon to accommodate that request. Where the vendor presents a proposal requiring a multi-year commitment
term, Verizon will use reasonable efforts to also obtain a proposal for a one year term as well. 
 2) Reimbursement. Company will
reimburse Verizon for: 

 (A) any payments made for perpetual licenses (for other than Required Third Party Software which are
covered by Section 3.2) accepted under the process, 
 (B) on a pro-rata basis, for any term, recurring “right to use,” or
monthly license charge licenses, with Verizon bearing the costs for the pre-Closing period, 
 (C) on a pro-rata basis,
for any support or maintenance payments made as to 3rd
party software, with Verizon bearing the costs for the pre-Closing period; and 
 (D) on a pro-rata basis, for any payments for IT
hardware/equipment services, with Verizon bearing the costs for the pre-Closing period. 

 EXHIBIT 3 – “BIG RULES” 

 

	A.	No minimum purchase requirements.

  

	B.	No take or pay provisions. 

  

	C.	No vendor exclusivity. 

  

	D.	No most favored nation provision (favoring vendor). 

  

	E.	No merger clause or provision purporting to amend, modify or supersede any other existing Frontier agreement.

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