Document:

Exhibit 10.37

 

 

ISx MASTER
LICENSE AND SUPPORT AGREEMENT

 

By
agreeing to the Oy International Business Machines Ab (“ISx Vendor) TFI1001022
dated 8.1.2002 and its supplement 001 dated 12.8.1004 IBM Order Agreement
including Program Specifications TFI 1001022OEM and SP 4922 (“IBM CONTRACT”):, Oy Eniro DS Ab
(“Licensee”) agrees to the terms of this ISx MASTER LICENSE AND SUPPORT
AGREEMENT (the “Agreement”), granted by Information Services
eXtended, Inc. (ISX), a Delaware Corporation (“ISx”) which is effective,
as January 1, 2003 (the “Effective Date”). Licensee and ISx are
collectively referred to as the “Parties.” By agreeing to the IBM Order
Agreement including Program Specifications TFI1001022OEM and SP 4922, ISx
Vendor and Licensee acknowledge and agree that ISx is a Party to this Agreement
and is able to enforce, and receive the benefit of, all its rights hereunder as
if it were a signatory to this Agreement.

 

ISx
Vendor is not a party of this Agreement, Licensee agrees to pay to ISx Vendor,
or, if ISx Vendor is incapable or unwilling to invoice and collect payments, to
ISx Inc., the amounts specified in this Agreement. ISx Vendor is in no event
liable for any errors or deficiencies in Software.

 

RECITALS:

 

WHEREAS, ISx owns or has acquired the right to license certain proprietary
Software (as defined herein);

 

WHEREAS, ISx desires to grant and Licensee desires to obtain a limited license
to the Object Code of the Software, along with certain Support and Maintenance
Services (as defined herein), subject to the terms and conditions of this
Agreement; and

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, the receipt and sufficiency of which is hereby acknowledged, the
Parties agree as follows:

 

1.                                 
Recital
Representations. The
Parties agree that all of the foregoing recitals are true, correct, and are
incorporated herein by reference.

 

 

2.                                     
Definitions.
Except for those words defined elsewhere in this Agreement, the following
non-exclusive list of definitions shall have the meanings set forth hereunder
in this Attachment and any Exhibits attached hereto.

 

2.                                      
“Affiliate”
means an entity directly or
indirectly controlling, controlled by or under common control with that party,
where control means the ownership or control, directly or indirectly, of more
than fifty percent (50%) of all of the voting power of the shares (or other
securities or rights) entitled to vote for the election of directors or other
governing authority; provided, however, that such entity shall be considered an
Affiliate only for the time during which such control exists.

 

2.2                                
“Confidential
Information” means,
(i) with respect to ISx’s Confidential Information, all proprietary
information, whether in oral, written, graphic, electronic or machine readable
form used or developed, in whole or in part, by ISx or by third parties,
and which ISx desires or is required to keep confidential including, without
limitation: price lists, customer lists, procedures, improvements,
modifications, Enhancements, Updates, concepts and ideas, business plans or
proposals, technical plans and proposals, research and development, know-how, budgets
and productions, technical memoranda, research reports, designs and
specifications, product and user manuals, software in both Object Code and
Source Code, specifically including the Software, Documentation, engineering,
hardware, configuration information, algorithms, new product and service
developments, comparative analysis of competitive products, services and
operating procedures, and other information, data and documents now existing or
later acquired by ISx, whether or not any such information, data or documents
qualify as trade secrets, are reduced to writing, or are protected by patent or
copyright registration under applicable federal or state law; and
(ii) with respect to Licensee’s Confidential Information, all proprietary
information, whether in oral, written, graphic, electronic or machine readable
form used or developed, in whole or in part, by Licensee or by third
parties, and which Licensee desires or is required to keep confidential
including without limitation information, data and documents now existing or
later acquired by Licensee, whether or not any such information, data or
documents qualify as trade secrets, are reduced to writing, or are protected by
patent or copyright registration under applicable federal or state law.

 

2.3                                
“Documentation”
means collectively:
(i) all of the written, printed, electronic, or other materials in any
format published or otherwise made available by ISx that relate to the
functioning, operation and/or performance capabilities of the Software;
(ii) all user, operator, systems administration, technical support, and
other manuals, and all other written, printed, electronic or other materials in
any format published or otherwise made available by ISx that describe the function
operating and/or performance capabilities of the Software.

 

2

 

2.4                                
“Enhancements”
means a new function or
feature for any portion of the Software that was not contained in previous
releases or versions of the Software and that may be incorporated into the
Software by modification of the then-existing Software or by development of new
programs.

 

2.5                                
“Error” means a failure of the Software that causes
the Software to crash, lose data,  or materially deviate from its
reasonably expected functionality.

 

2.6                                
“License” means the license of the Software described
in Section 3, hereunder.

 

2.7                                
“One
Time License Charge” (OTC)
means the license fee paid by Licensee to ISx for the use and License of the
Software, in accordance with the provisions of this Agreement and attachments
thereto, and as described in Section 6.1 hereunder.

 

2.8                                
“Object
Code” means the binary
machine-readable version of the Software.

 

2.9                                
“Software”
means the Object Code or
machine-readable version of the computer software described in Exhibit ”A”
attached hereto, including any future Updates, or Enhancements developed and
owned or licensed by ISx. “Software” also means any whole or partial copies of
machine-readable data such as a database and related licensed materials,
including documentation and listings in any form.

 

“Services” means the performance of a task or project, provision of advise and
counsel, assistance, or use of a resource (such as access to an information
data base) ISx may make available to Licensee. When appropriate, ISx’s  provision of the Services may be
described in a separate agreement and referred to as a “Technical Services
Agreement” which may also include at least one “Statement of Work” as an
appendix that provides further details.

 

“Source Code” means those statements in a computer language that when processed by a
compiler, assembler or interpreter become executable by a computer.

 

2.12                          
“Specifications”
means the technical and
functional specifications for the Software in effect at the date of this Agreement,
and as may be provided in an Exhibit ”A” attached hereto.

 

“Support and Maintenance Fee” or “Annual Support Charge” (“ASC”) means the
annual fee to be paid by Licensee pursuant to Section 6.2 hereunder for
Support and Maintenance Services.

 

3

 

2.14                          
“Support
and Maintenance Services”
means ISx’s provision of the services described in Section 4.1 hereunder.

 

“Territory” means Finland unless otherwise specified.

 

“Third Party Software” means any computer software programs not
owned or licensed by ISx.

 

2.17                          
“Update” means any revision to the Software licensed
hereunder consisting of Error fixes and/or minor functional enhancements issued
by ISx from time-to-time, generally made available to Licensee.

 

3.                                     
Grant
of Software License

 

3.1                                
License Grant. Subject to the terms and conditions of this
Agreement, ISx hereby grants to Licensee a limited, non-exclusive (except as
set forth in Section 3.5 below), non-transferable, non-assignable right to
use during the Term (as defined below) an unmodified version of the Software
and the Documentation solely for Licensee’s internal use in providing directory
assistance services within the Territory (the “License”). Licensee shall not
use, license, sublicense, lease, copy or otherwise distribute the Software in
any other manner except as expressly stated herein. Licensee shall have the
right to make one (1) copy of the Software for back-up purposes only
provided Licensee reproduces the copyright notice and any other legend or
ownership on the copy. You may use the copy only to replace the original,
when necessary.

 

3.2                                
No Licenses. Except as is expressly set forth in this
Agreement, Licensee shall not, nor shall Licensee authorize or permit any third
party, to translate, update, modify, reverse engineer, reverse assemble,
reverse compile, decompile, recompile, or disassemble the Software, nor shall
Licensee have the right to sublicense, assign, distribute, lease or otherwise
make available to any third party any of the rights granted to Licensee
hereunder. Except as expressly provided herein, no other licenses are granted
herein.

 

3.3                                
Software Ownership. Except to the extent that a third party
software provider reserves rights in software being provided herein, all
patents, patentable material, copyrights, trademarks, trade secrets, service
marks, trade names, intellectual property and other proprietary rights in or
related to the Software are and will remain the exclusive property of ISx
whether or not specifically recognized or perfected in the laws of the
jurisdiction in which the Software is used or licensed. Licensee will not take
any action that jeopardizes ISx’s proprietary rights or acquire any right in
the Software or Confidential Information. ISx will own all rights in any
permitted copy,

 

4

 

translation,
modification, adaptation or derivation of the Software or Confidential
Information, if any, including any Enhancement or Updates, if any. Unless
otherwise provided, Licensee also acknowledges that ISx owns all proprietary
rights, including patent, copyright, trade secret and other proprietary rights,
in and to the Software and any corrections, bug fixes, enhancements, updates or
other modifications, including custom modifications, to the Software. Licensee
will obtain, at ISx’s request, the execution of any instruments that
may be appropriate to assign these rights, or any other rights reasonable
and necessary to Licensee rights (if any) in the Software, to ISx, its parents,
subsidiaries, Affiliates or assigns, or perfect these rights in ISx’s name. All
rights not expressly granted herein to Licensee are retained by ISx. Both ISx
and Licensee agree to reproduce the copyright notice and any other legend of
ownership on any copies made under the licenses granted in this part.

 

3.4                                
Enhancements and
Updates. Any Enhancements
and Updates provided to Licensee under this Agreement shall be considered
part of the Software, and as such shall be governed by the terms and
conditions of this Agreement. Notwithstanding any other provision of this
Agreement, ISx is under no obligation to provide Licensee with Enhancements,
and ISx’s obligation to provide Licensee with Updates is subject to the
provision of Section 4 hereunder, including Licensee’s payment of the
Support and Maintenance Fee.

 

3.5                                
Program Packages. ISx may provide certain programs
together with their own license agreements. These programs (called “Program
Packages”) are licensed under the term of the agreements provided with them. This
Agreement’s patent and copyright  terms
apply to ISX Program Packages. For a Program Package, ISx may specify that
Additional License Copies apply. If so, these copies are subject to the terms
of the Program Package’s agreement, except that Licensee may not transfer
them. If Additional License Copies apply, Licensee may copy all of the
Program Package’s printed documentation. ISx may also specify that a
testing period applies wherein Licensee may return the program Package to
ISx before the end of such testing period for a refund.

 

3.6                                
Program Protection. For each license in the Software, Licensee
agrees to  ensure that anyone who
uses the Software (accessed either locally or remotely) does so only for your
authorized use and complies with ISx’s terms regarding such Software. Licensee
further agrees to maintain a record of all copies and in the case of a licensed
database, Licensee shall allow access to the information contained in it only
to Licensee’s employees, agents, or subcontractors, and only in support of
their work for Licensee.

 

5

 

4.                                     
Software
Support and Maintenance Services.

 

4.1                                
Obligation to Provide
Support and Maintenance Services. During the Initial Support and
Maintenance Period and for each successive Support and Maintenance Period (each
as defined below), and provided that Licensee has paid the Support and
Maintenance Fee then owing to ISx, as provided in Section 6.2, Licensee
shall receive by telephone, e-mail, or, if reasonably required by the
circumstances, on-site Support and Maintenance Services as are more
particularly described in Exhibit ”B” attached hereto. Licensee, at its sole
expense, agrees to make a reasonable effort to establish and maintain an
internal competency center or help desk to assist ISx in coordinating and
providing the Support and Maintenance Services as set forth herein by
establishing a central point of contact with ISx.

 

Modification
of Support and Maintenance Services. ISx, in its sole discretion, reserves the right to change or modify
the Support and Maintenance Services to be provided to Licensee during any
subsequent Support and Maintenance Period by providing Licensee with written
notification of such changes or modifications no later than ninety (90) days
prior to the scheduled end of the then current Support and Maintenance Period.

 

Obligations
Of Licensee

 

a.                                      
Licensee Contact.
Licensee shall notify ISx of Licensee’s designated Licensee Contact. To the
maximum extent practicable, Licensee’s communications with ISx will be through
the Licensee Contact.

 

b.                                     
Installation. Licensee
agrees to install all corrections of substantial defects, minor bug fixes and
updates, including any enhancements, for the Software in accordance with the
instructions and in order of receipt from ISx including setting up and
maintaining and appropriate operating environment. In order to receive support
under this Agreement, Licensee must be on the current available release of the
Software.

 

c.                                      
Facility and Personnel
Access. Licensee agrees to grant ISx access to Licensee’s facilities and
personnel concerned with the operation of the Software to enable ISx to provide
defect support. Such access shall be sufficient, free and safe for ISx to
fulfill its obligations.

 

d.                                     
No Modification of
Software. Licensee agrees not to modify, enhance or otherwise alter the
Software, unless and only to the extent specifically authorized in the user
manuals identified in Exhibit A or the prior written consent of ISx is
obtained.

 

6

 

e.                                      
Error Documentation. Upon
detection of any error in the Software, Licensee, as requested by ISx, agrees
to provide ISx a listing of output and any other data, including databases and
backup systems, that ISx reasonably may request in order to reproduce
operating conditions similar to those present when the error occurred.

 

5.                                     
Agreement Structure & Invoicing.

 

5.1                                
Software becomes subject
to this Agreement when ISx accepts Licensee’s order. ISx accepts Licensee’s
order by sending Licensee written confirmation of such acceptance or by
shipping the Software.

 

5.2                                
Licensee accepts
additional terms in any written confirmation, invoice, or other written
document provided by ISx by either signing such document, using the Software or
Service, or allowing others to do so, or by making any payment for the Software
or Service.

 

5.3                                
ISx Vendor or, if ISx
Vendor is incapable or unwilling to invoice and collect payments, ISx Inc.
shall invoice for the following: 1) OTC; 2) ASC in advance for applicable
invoice period; 3) All other charges when or after Licensee incurs them.

 

5.4                                
For software or service
beyond the scope of this Agreement, ISx may charge extra if, for example,
1) ISx is required to use other than private automobile or scheduled public
transportation to provide Maintenance Service or 2) we respond to your request
for service of Software outside its standard service provisions. ISx will use
reasonable efforts to notify Licensee in advance if these charges apply and the
charges will be valid after Licensee’s prior written approval. Thus, in connection
with the performance of the Support and Maintenance Services outside the scope
of this Agreement, Licensee shall reimburse ISx for all reasonable out of
pocket business expenses incurred by ISx and/or its agents, including, but not
limited to, travel to Licensee’s place of business by ISx’s employees and
agents, hotel and meal allowances, fees of third party contractors, and the
purchase of materials or rental of equipment. Licensor will use reasonable
efforts to notify Licensee in advance if these charges apply.

 

7

 

6.                                     
License Fees; Support Fees; Expenses; Audit Rights

 

6.1                                
Existing software. ISx agrees to grant a license for the
Software and Upgrades to the Licensee for no charge for Software as described
in Exhibit A as of this Effective Date.

 

6.2                                
Annual Support and
Maintenance Fee. The Support
and Maintenance Fee is also referred to herein as “Annual Support Charge” or
“ASC”. In exchange for Support and Maintenance Services to the Licensee as set
forth in paragraphs 3.1 and 4.1 above, Licensee agrees to pay ISx Vendor or, if
ISx Vendor is incapable or unwilling to invoice and collect payments, ISx Inc an
Annual License Charge (in EUROs) as detailed in Exhibit A within thirty
(30) days of the Effective Date of this Agreement, which amount will cover the
Support and Maintenance Services for the Initial Support and Maintenance
Period. Thereafter, on of before each yearly anniversary of the Effective Date
of this Agreement, Licensee will be required to make additional ASC  payments to ISx Vendor, which amounts
will be in payment of the Support and Maintenance Fee. Failure to pay the
ASC will remove any obligation from ISx to provide any additional enhancements,
updates or upgrades. The obligation to provide Support and Maintenance
Services hereunder is conditioned upon ISx first receiving complete payment of
the Support and Maintenance Fee. ISx reserves the right to increase the Annual
Support and Maintenance Fee during any subsequent Support and Maintenance
Period by providing Licensee with written notice at least ninety (90) days
prior to the scheduled end of the then current Support and Maintenance Period; provided
however, that Licensee may choose not to continue their right not to
receive Support and Maintenance Services by providing ISx with written notice
no less than thirty (30) days prior to the scheduled end of the then current
Support and Maintenance Period.

 

6.3                                
Audit Rights. Licensee shall maintain accurate and
complete books and records relating to its use of the Software pursuant to this
Agreement and keep such materials for the greater of five (5) years, or as
required by law in the jurisdiction where the Software is located. ISx will
have the right, no more than once per calendar year, to have an independent
public accountant (the “Auditor”) examine Licensee’s relevant books, records
and accounts (including records contained in electronic format on computers or
any electronic data storage device) for the purpose of verifying Licensee’s
compliance with this Agreement. Each audit will be conducted at Licensee’s
place of business or at another place agreed to by ISx and Licensee during
Licensee’s normal business hours, and upon at least five (5) days prior
written notice. ISx will pay all fees and expenses of the Auditor for the
examination; provided, however, that Licensee will bear any such expense if the
review or audit shows a discrepancy in favor of ISx or Licensee’s
non-compliance with the terms of this Agreement. All deficiencies shown by any
such audit shall be immediately paid by Licensee in Euro currency.

 

8

 

7.                                     
Taxes.

 

7.1                                
Taxes and Duties. Licensee shall pay all sales, use,
transfer, privilege, excise, personal property, and all other taxes of every
kind and nature, and all duties whether international, national, state or
local, however designated, which are levied or imposed by reason of ISx’s
performance under this Agreement; excluding, however income taxes which
may be levied against ISx.

 

7.2                                
Withholding and Reimbursements. Licensee agrees that if any of the taxes or
duties listed in Section 7.1 above are paid by ISx on behalf of
Licensee, Licensee shall immediately reimburse ISx for the amount paid, plus
any expenses incurred by ISx in connection therewith along with interest
thereon at a rate equal to the lesser of eighteen percent (18%) per annum, or
the maximum amount allowed by law. In the event Licensee is required by any
applicable law to deduct any amounts from the amounts to be  paid to ISx under this Agreement on
account of withholding taxes or any other taxes or levies of any kind, Licensee
agrees that it shall pay all such additional amounts so that the net amounts
received by ISx are the amounts to be paid by ISx specified herein.

 

8.                                     
Non-Solicitation. Licensee
agrees and covenants that it shall not directly or indirectly through another
entity: (i) induce or attempt to induce any employee of ISx to leave the
employee of ISx, any way interfere with the relationship between ISx and any
employee or agent thereof, or (ii) hire any person who was an employee or
agent of ISx at any time during the term of this Agreement (unless such
employee was terminated by ISx). Licensee agrees that in the event it, directly
or indirectly, hires or engages any of such personnel, on any basis or in any
capacity other than with the prior written consent of ISx, Licensee shall
immediately pay ISx fifty percent (50%) of the total compensation to be paid by
the Licensee to such personnel for the following one-year period.

 

9.                                     
Trademark
and Trade Names. Except
as specifically agreed to by ISx in writing, Licensee shall not reproduce,
publish, reference, distribute or utilize any trademark or trade name of ISx or
its Affiliates electronically, in writing, or in any visual way without the
prior written approval of ISx. Without limiting the foregoing, Licensee agrees
to submit to ISx, prior to use, distribution or disclosure, any advertising,
promotion or publicity in which the trademarks or trade names of ISx or its
Affiliates is used, or which is otherwise undertaken pursuant to this
Agreement.

 

10.                              
Warranty and Warranty Disclaimer.

 

10.1                          
Limited Software Warranty. For a period of thirty (30) days, (the
“Software Warranty Period”) beginning on the date of delivery of the Software
to Licensee, ISx warrants that all Software shall substantially operate as
described in the

 

9

 

Documentation
and Specifications described herein (the “Software Warranty”). ISx will, at its
own expense and as its sole obligation and Licensee’s sole and exclusive remedy
for any breach of this Software Warranty, use commercially reasonable efforts
to correct any reproducible Error  in
the Software reported to ISx in writing (along with all information available
to Licensee that is relevant to verifying, diagnosing, or correcting the Error)
during the Software Warranty Period. ISx may correct any Error by
providing to Licensee, at ISx’s sole option, either: (i) a new version of
the Software in which the Error has been corrected; (ii) additional
software code that when installed in accordance with ISx’s instructions, will
correct the Error; or (iii) instructions for operating the Software in a
manner that will eliminate the material adverse effects of the Error. Any such
Error correction provided to Licensee will not extend the original Software
Warranty Period. This Software Warranty will terminate immediately if Licensee
or any third party makes any modification to the Software.

 

No
Third Party Software Warranty. ISx makes no warranties regarding Third Party software used with the
Software, if any. ISx shall have no responsibility for any nonconformance with
the Documentation or Specifications in the Software caused by alterations,
modifications or installations made by Licensee or a third party. Any work
relating to, including corrections, for difficulties or defects traceable to
Licensee’s unauthorized alterations, modifications, errors or system changes
shall be paid by Licensee at ISx’s then current time and material rates.

 

No
Warranty for third party machines. ISx makes no warranties regarding IBM or third party machines. Such
third party machines or products may have a specified warranty service as
may be provided by such third parties to Licensee.

 

10.4                       
DISCLAIMER OF WARRANTIES. THE LIMITED SOFTWARE WARRANTY SET FORTH ABOVE IS IN
LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY REGARDING
THE SOFTWARE AND ANY MACHINES USED IN CONJUNCTION WITH THE SOFTWARE, INCLUDING
ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
TITLE AND NON-INFRINGEMENT OF THIRD PARTY RIGHTS (ALL OF WHICH ARE DISCLAIMED).
LICENSEE ACKNOWLEDGES THAT IT IS NOT RELYING ON ANY WARRANTIES OR STATEMENTS BY
ANY PERSON OTHER THAN THE EXPRESS WARRANTIES SET FORTH ABOVE. ISX DOES NOT
WARRANT THAT THE USE OF THE SOFTWARE OR MACHINES WILL BE ERROR FREE OR UNINTERRUPTED.
MISUSE, ACCIDENT, MODIFICATION, UNSUITABLE PHYSICAL OR OPERATING ENVIRONMENT,
OPERATION IN OTHER THAN THE SPECIFIED OPERATING

 

10

 

ENVIRONMENT, IMPROPER MAINTENANCE BY LICENSEE, OR FAILURE
CAUSED BY A PRODUCT FOR WHICH ISX IS NOT RESPONSIBLE MAY FURTHER VOID THE
LIMITED WARRANTY ABOVE.

 

11.                              
INDEMNIFICATION.

 

11.1                          
Third Party
Infringement Claims. Subject
to the provisions of this Agreement, ISx will defend at its own expense any
action against Licensee brought by a third party to the extent that the action
is based upon a claim that the Software directly infringes any U.S. patent or
copyright or misappropriates any trade secrets recognized as such under any
applicable U.S. trade secret laws. Subject to the provisions of this Agreement
ISx will pay those costs and damages finally awarded against Licensee in any
such action that are specifically attributable to such claims.

 

1.2                                
Conditions. ISx’s obligations under Section 11.1
above with respect to an action are conditioned on: (i) Licensee
immediately notifying ISx in writing of such action when Licensee knows or
reasonably should know of the existence of such action, (ii) Licensee
giving ISx sole control of the defense thereof and any related settlement
negotiations, and (iii) Licensee cooperating with ISx in such defense
including, without limitation, making available to ISx all documents and
information in Licensee’s possession or control that are relevant to the
infringement or misappropriation claims or actions, and by making Licensee’s
personnel available to testify or consult with ISx or its attorneys in
connection with such defenses.

 

11.3                          
ISx’s Options. If the use of the Software or a component
thereof by Licensee becomes, or in ISx’s option is likely to become, the
subject of infringement or misappropriation claims or actions then ISx may, at
its sole option and expense either: (i) procure for Licensee the right to
continue using the Software; (ii) replace or modify the infringing
Software or component thereof so that it becomes non-infringing,
(iii) replace the Software or a component thereof with a non-infringing
substitute, or (iv) terminate Licensee’s right to use the Software and
give Licensee a pro-rated refund or credit for the License Fee actually paid by
Licensee to ISx for the infringing Software item.

 

11.4                          
Exclusions. Notwithstanding the foregoing, ISx will
have no obligation or otherwise with respect to any infringement or
misappropriation claims or actions based upon: (i) any use of the Software
not in accordance with this Agreement or the Documentation or for purposes not
intended by ISx such as use of Software outside its specified operating
environment, (ii) any modification of the Software made by any person
other than ISx not agreed to by ISx in writing, (iii) a combination of the
Software with the software or hardware of a third party; (iv)  a non-lSX
product

 

11

 

alone;
or (v) Licensee’s continued use of the alleged infringing activity after
being notified in writing by ISx thereof or after receiving a modification
delivered by ISx that would have avoided the alleged infringement.

 

ENTIRE LIABILITY. THIS SECTION STATES
ISX’S ENTIRE LIABILITY AND LICENSEE’S SOLE AND EXCLUSIVE REMEDY FOR
INFRINGEMENT OR MISAPPROPRIATION CLAIMS AND ACTIONS PURSUANT TO
SECTION 11.1 ABOVE.

 

6                                        
Indemnification by
Licensee. Licensee will
defend, indemnify and hold harmless ISx and its shareholders, officers,
directors, agents, and employees from any and all claims, losses, liabilities,
damages, costs, awards, and expenses, including attorneys’ fees, expertise
witness fees  and court costs
(directly or indirectly) arising from or related to (i) any breach by
Licensee of its obligations, duties and responsibilities under this Agreement,
(ii) any breach of or default under any representations, warranties,
guarantees or other written or oral statements made by or on behalf of Licensee
or any person under its control, including agents, or (iii) third party
claims based on Licensee’s modification to the Software or based on Software
created to Licensee’s specific design.

 

12.                              
LIMITATION OF LIABILITY.

 

EXCLUSIONS TO LIABILITY. ISX SHALL NOT BE LIABLE
FOR ANY: (1) SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL
DAMAGES, INCLUDING LOSS OF PROFITS, ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OPERATION OR USE OF THE SOFTWARE, INCLUDING, WITHOUT
LIMITATION, SUCH DAMAGE ARISING FROM LOSS OF DATA OR PROGRAMMING, LOSS OF
REVENUE OR PROFITS, FAILURE TO REALIZE SAVINGS OR OTHER BENEFITS, DAMAGES TO
EQUIPMENT, BREACHES OF SECURITY, AND CLAIMS AGAINST LICENSEE BY ANY THIRD
PERSON, EVEN  IF ISX HAD BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES; (2) DAMAGES REGARDLESS OF THEIR NATURE, FOR ANY DELAY OR FAILURE
BY ISX TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT DUE TO ANY CAUSE
BEYOND ISX’S REASONABLE CONTROL; OR (3) CLAIMS MADE A SUBJECT OF A LEGAL
PROCEEDING (INCLUDING ARBITRATION) AGAINST ISX MORE THAN TWO (2) YEARS
AFTER ANY SUCH CAUSE OF ACTION FIRST AROSE.

 

12.2                       
LIMITATION OF DAMAGES. NOTWITHSTANDING ANY OTHER PROVISION OF THIS
AGREEMENT, ISX’S SOLE LIABILITY UNDER

 

12

 

THIS AGREEMENT OR ANY APPENDED EXHIBITS, WHETHER UNDER
CONTRACT LAW, TORT LAW, WARRANTY OR OTHERWISE SHALL BE LIMITED TO DIRECT
DAMAGES NOT TO EXCEED 100,000  EURO. LICENSEE SPECIFICALLY
ACKNOWLEDGES THAT THE EXCLUSIONS AND LIMITATION OF LIABILITY EXPRESSEDAS IN
THIS  SECTION HAVE BEEN
CONSIDERED AND NEGOTIATED IN THE CONTEXT OF THE SOFTWARE AND SERVICES TO BE
PROVIDED BY ISX  UNDER THIS
AGREEMENT, AND THAT THEY ARE REASONABLE UNDER THE CIRCUMSTANCES, AND THAT THE
LICENSE FEE AND OTHER CHARGES SPECIFIED IN THIS AGREEMENT WOULD BE
SUBSTANTIALLY HIGHER IF THIS PROVISION WAS UNENFORCEABLE.

 

13.                              
Term and Termination.

 

3.                                      
Term of the Agreement. This  Agreement
shall take effect upon the Effective Date set forth in Exhibit A to the
Master License &  Support
Agreement. An Initial  Support
Period shall begin from the  effective  date of the Master License Agreement and
run for one year from the effective date of the Master License and Support
Agreement. Any subsequent Support Period shall be for one year following the
Initial Support Period. Unless otherwise terminated or expired, Renewal of the
ASC shall be automatic at the end of each Support Period. Charging Period  shall be annual and invoiced in advance of
each Support Period.

 

13.2                          
Termination. Other than a breach or default by Licensee
under Sections 3, 6, or 15 of this Agreement, in which case, ISx  may immediately terminate this
Agreement upon delivery of written notice thereof to Licensee,  this Agreement may be terminated by
either party as follows: (i) at any time by the mutual agreement of ISx and
Licensee, or (ii) by either party by giving thirty (30) days written
notice to the other party (the “Defaulting Party”) of a material breach of the
Agreement, and such Defaulting Party  fails
to cure the material breach within such thirty (30) day period, unless a longer
time period is agreed to in writing by ISx and Licensee. (iii) by either
party by giving ninety (90) days written notice to the other party.

 

13.3                          
Effects of Termination. Upon the termination or expiration of this
Agreement: (i) the obligation of ISx to maintain or upgrade the Software
will cease; (ii) ISx will be under no obligation to repair, fix, modify or
render any assistance to the Licensee without a new Service and Maintenance
agreement; and (iii) the provisions of these Licenses and this Agreement
will remain in effect in perpetuity. Neither party shall incur any liability
for damage, loss, or expenses incurred by the other incident to a party’s
termination of the Agreement in accordance with its terms.

 

13

 

3.4                                
Licensee’s Continuing
Obligations. Without
limiting any of the above provisions, in the event of a termination as a result
of Licensee’s failure to comply with any of its obligations under this
Agreement, Licensee shall continue to be obligated to pay any such sums that
may then be owing to ISx, nor shall termination discharge any liability
that may have been incurred by Licensee subsequent thereto.

 

14.                              
Proprietary Notices.
Licensee agrees to abide by the terms and conditions of all confidentiality
notices or legends placed upon the Software; not to conceal from view any
copyright, trademark or confidentiality notices placed on the Software, or any
output generated by the Software; and to reproduce all copyright, trademark or
confidentiality notices on all copies of the Software, made by Licensee, as
permitted hereunder.

 

15.                              
Confidentiality.

 

Obligation
to Maintain Confidentiality. By virtue of the transactions contemplated by this Agreement, either
Licensee or ISx, as the case may be (the “Receiving Party”)
may obtain Confidential Information disclosed by either ISx or Licensee,
as the case may be (the “Disclosing Party”). The Receiving Party agrees
that, except as expressly authorized by the Disclosing Party in writing, it
will not at any time (during the term of this Agreement, or any time
thereafter) disclose to any person or use any Confidential Information, as defined
above, for any purposes whatsoever, or permit any person whatsoever to examine,
and/or make copies of any reports, Documentation or Software (whether in
written form or stored on magnetic, optical, or other mass storage media)
prepared by it or that comes into its possession or under its control pursuant
to this Agreement. The Receiving Party further agrees to maintain any
Confidential Information that may come into its possession using the same
degree of care the Receiving Party uses with its own confidential information,
but in no case less than reasonable care under the circumstances.

 

15.2                          
Exceptions to
Confidentiality.
Notwithstanding the foregoing, Confidential Information shall not include any
information that: (i) at the time of the disclosure is already in the
possession of the Receiving Party and not subject to an existing obligation of
confidentiality; or (ii) is independently made available to the Receiving
Party by an unrelated third party whose disclosure would not constitute a
breach of any duty of confidentiality owed to the Disclosing Party and
demonstrated by documentary evidence by the Receiving Party; (iii) is
generally available to the public through no wrongful act of the Receiving
Party, (iv) is independently developed by the Receiving Party without
using the Confidential Information as demonstrated by documentary evidence by
the Receiving Party; or (v) is compelled to be disclosed pursuant to a
court order, or by governmental agency having authority over Receiving Party,
and provided that the Disclosing Party shall first have the opportunity to
request a protective order, and also provided that the Receiving Party

 

14

 

first
uses reasonable efforts to obtain confidential treatment for the Confidential
Information.

 

Except
as provided above, all other information exchanged shall be considered
non-confidential. If either party requires the exchange of confidential
information outside the scope of the definition of Confidential Information in
this Agreement, it will be made under a signed confidentiality agreement.

 

16.                              
Equitable Remedies.
Recognizing the competitive nature of the computer software industry, and also
the special knowledge of the Software and of the affairs and operations ISx
that Licensee has or may gain during the term of this Agreement, Licensee
agrees that in the event it fails to comply with any of the terms set forth in
this Agreement, ISx will suffer irreparable harm, which may not be
adequately compensated by monetary damages. Accordingly, Licensee agrees that
in the event of a breach or threatened breach of this Agreement, ISx shall be
entitled to injunctive or other preliminary or equitable relief, in addition to
such other remedies as may be available to it for such breach or
threatened breach, including a temporary restraining order, permanent
injunction, damages, and any other available remedies allowable under the law,
by showing actual damages.

 

17.                              
Notices.

 

Delivery
of Notices. All
notices, requests, demands and other communications, which are required or
permitted hereunder shall be in writing, and shall be deemed to have been duly
given, made and received: when personally delivered; or, if by facsimile when
received, provided that the sender retains a printed transmittal confirmation
sheet reflecting the date and time of delivery; or, if by overnight courier
service, one (1) day following the day when deposited therewith for
overnight priority service; or when deposited in the United States mails, first
class postage prepaid, three (3) days following the day of such
mailing, and addressed as set forth below:

 

	
   

  	
  If
  to ISx to:

  	
   

  	
   

  
	
   

  	
   

  	
  Information
  Services Extended, Inc.

  
	
   

  	
   

  	
  6301
  N.W. 5th Way, 4th Floor

  
	
   

  	
   

  	
  Ft.
  Lauderdale, FL 33309

  
	
   

  	
   

  	
  Tel:
  917-953-9203  954-689-6270  Fax 954-689-6360

  
	
   

  	
   

  	
  miles@isxinc.com

  
	
   

  	
   

  	
  Attention:
  Miles Wortman

  
	
   

  	
   

  	
   

  
	
   

  	
  If
  to IBM to:

  	
   

  	
   

  
	
   

  	
   

  	
  Oy
  International Business Machines Ab

  
	
   

  	
   

  	
  Tietokuja
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

15

 

	
   

  	
   

  	
  FIN-00330
  Helsinki

  
	
   

  	
   

  	
  Tel:
  +358 9 459 5506 Fax: +358 9 459 4442

  
	
   

  	
   

  	
  erkki.lumivirta@fi.ibm.com

  
	
   

  	
   

  	
  Attention:
  Erkki Lumivirta

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If
  to Licensee to:

  	
   

  	
   

  
	
   

  	
   

  	
  Company:
  Oy ENIRO DS Ab

  
	
   

  	
   

  	
  Address:
  Saterinkatu 6, 02601 Espoo

  
	
   

  	
   

  	
  Telephone:
  +358 20 111 0510

  
	
   

  	
   

  	
  Fax:
  +358 20 111 0511

  
	
   

  	
   

  	
  e-mail:
  heikki.mikkonen@eniro.fi

  
	
   

  	
   

  	
  Attention:
  Heikki Mikkonen

  

 

7.2                                
Change in Notice
Address. Any party hereto
may alter the address to which communications or copies are to be sent by
giving notice of such change of address in conformity with the provisions of
this Section.

 

18.                              
Assignment. Licensee and its Affiliates may not
assign or transfer (including without limitation, by operation of law) its
interest, rights or obligations under this Agreement or sublicense the Software
without the prior written consent of ISx, and any prohibited assignment or
sublicense shall be null and void.

 

19.                              
Amendment. No amendment or modification of this
Agreement shall have any effect, unless done in writing, stating with
specificity the particular amendment or modification to be made and signed by
all Parties hereto or their duly authorized representatives.

 

20.                              
Waiver;
Severance. Nothing
herein may be waived unless done in writing and signed by the Parties to
be bound, and no modification or amendment of any provision of this Agreement
shall be construed as a waiver, breach or cancellation of any other provision
or a waiver of any other option, right or privilege on any other occasion. In
the event any of the provisions of this Agreement are deemed to be invalid or
unenforceable by court order, administrative agency or other governmental
action, the unenforceable provision shall be deemed severable from the
remainder of this Agreement to the extent permitted by law, and the remaining
provisions of the Agreement shall remain binding with the same effect as though
the void parts were deleted.

 

21                                 
The laws of Finland will
govern, construe, and enforce all of the rights, duties, and obligations
arising under, or relating in any manner to, the subject matter of this
Agreement, notwithstanding any conflicts of law principles. The Parties agree
that this Agreement is not

 

16

 

subject
to and shall not be interpreted by the United Nations Convention on Contracts
for the International Sale of Goods.

 

22.                              
Construction
and Interpretation. The
section headings in this Agreement are for convenience only, they
form no part of this Agreement and shall not affect its
interpretation. This Agreement may be executed in one or more
counterparts, each of which will be deemed an original and all of which
together will constitute one and the same instrument. Except as otherwise
provided herein, words used herein, regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the
context indicates is appropriate.

 

23.                              
Survival. Sections 3.2, 3.3, 6, 7, 8, 9, 10, 11, 12,
13.3, 13.4, 14, 15, 16, 18, 21, 23, 24, 26 and 28, in addition to any other
provisions that by their nature extend beyond termination or expiration, shall
survive the termination or expiration of this Agreement.

 

24.                              
Attorneys’
Fees. The prevailing
party in any action, including arbitration, to enforce or interpret this
Agreement shall be entitled to recover reasonable costs and fees in connection
therewith, including reasonable attorneys’ fees in addition to any other
remedies available at law or in equity.

 

25.                              
Severability. The provisions of this Agreement are
independent of and separable from each other, and no provision shall be
affected or rendered invalid or unenforceable by virtue of the fact that for
any reason any other or others of them may be invalid or unenforceable in
whole or in part.

 

Export Control and Other Regulatory Compliance. This Agreement shall be subject to all
applicable laws, rules and regulations relating to the Software, including
the export regulations of the United States Department of Commerce, Bureau of
Export Administration. Licensee shall comply with all such laws, rules and
regulations. Licensee shall not, and Licensee shall not permit any other party
to, export or re-export the Software, whether in whole or in part, directly or
indirectly, to any country, or to any foreign national of such a country
regardless where such foreign nationals are located, for which the United
States Government or any agency thereof requires an export license or other
approval without first obtaining the same and at the sole cost and expense of
Licensee.

 

Relationship of the Parties. Each Party is acting as an independent
contractor and not as an agent, partner, or joint venture partner of the other
Party for any purpose except as provided for in this Agreement. No Party shall
have the right, power, or authority to act or create any obligation express or
implied on behalf of the other, and neither party shall hold itself out as
being able to do so.

 

17

 

28.                              
Arbitration. All disputes arising in connection with
this Agreement will be finally settled in arbitration by three arbitrators in
accordance with the rules of the Central Chamber of Commerce in Helsinki.
The arbitrators will come together, and the arbitration will take place, in
Helsinki. The official language of the proceedings will be English.

 

29.                              
Entire
Agreement. This
Agreement constitutes the sole and entire Agreement among the Parties
pertaining to the subject matter contained herein and supersedes and cancels
any and all other prior or contemporaneous agreements or understanding, whether
oral or written, among the Parties with respect to the subject matter contained
herein.

 

AGREED:

 

	
  Licensor:

  	
   

  	
  Licensee:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Information Services eXtended, Inc.

  	
   

  	
  Oy Eniro DS Ab

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Miles Wortman

  	
   

  	
  By:

  	
  /s/
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:
  Miles Wortman

  	
   

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:
  Director, Global Operations

  	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ISx Vendor:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Oy International Business Machines

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

18

 

EXHIBIT ”A”

to Master License & Support Agreement

 

ISx
SOFTWARE

 

	
   

  	
  Computer
  Programs are listed in IBM CONTRACT

  
	
  2.

  	
  Effective
  Date: January 1, 2003

  
	
  3.

  	
  One-Time
  License Charges (OTC) are stated in IBM CONTRACT

  
	
  4.

  	
  Annual
  Service Charges (ASC) are stated in IBM CONTRACT

  
	
  5.

  	
  The
  Software listed in IBM CONTRACT shall be subject to the Software Support
  Process EXHIBIT ”B”.

  

 

19

 

EXHIBIT ”B”

to License & Support Agreement

 

SOFTWARE
SUPPORT PROCESS

 

This
document defines the process for providing defect service, problem resolution
and product support for the Software listed in Exhibit A from ISX  to the Licensee/Customer.

 

Scope
Of Process

 

During
the term of the License & Support Agreement, ISx will use commercially
reasonable efforts to provide Customer standard maintenance and defect support
as set forth in below for the computer programs and user  manuals listed in Exhibit A to the
License & Support Agreement (collectively “Software”).

 

Standard Maintenance Services

 

Scope
of Services. During
the term of this Agreement, ISx will provide Customer the following Standard
Maintenance Services for the Software:

 

1                 
Corrections of
substantial defects in the Software so that the Software will operate as
described in the user manuals listed in  Attachment
A.

 

2.              
Periodic updates of the
Software that may incorporate (A) corrections of any substantial
defects, (B) fixes of any minor bugs, and (C)at the sole discretion of
Isx, enhancements to the Software. The term updates does not include new
versions.

 

Problem Reporting and Support –Program defects may be reported as an
Incident via the ISx Support website to the ISx Support system, by Customer
directly. Customer can report problems via the website any day any time. For
reported severity 1 Incidents, ISx provides  customer
support 24x7. For other severity levels, ISx provides customer support from
Monday through Friday (8:00 AM - 5:00 PM, Customer
local time), excluding ISx local holidays.

 

When
reporting a problem, customer personnel should provide the following
information as a minimum:

 

•                 
Customer ID

•                 
Customer Password

•                 
Customer contact name

ISx
product name and version

Severity
of the Incident

•                 
Description of the
problem

 

20

 

An
Incident will be generated by the ISx Support system as a result of this
initial ISx Support website entry and an Incident number will be assigned as
the control number by the ISx Support system. The Incident number should be
used in all future communication concerning the problem.

 

This
Incident will be recorded in the ISx Support database. The ISx Support system
contains records about each problem and the solution (or fix) for it. It also
contains records about ISx customers, products and service organizations.

 

ISx
Support System will send an email acknowledgement to the Customer Contact on
the incident indicating that the incident has been received. ISx customer
support personnel contact the Customer within the defined time periods
established for each severity level to begin problem investigation. ISx
customer support personnel provide problem resolution and maintain the Incident
to closure. Customer may obtain incident status at any time via the ISx
Support website. Also, Customer may update an existing incident with new
information via the website.

 

If a problem requires on-site assistance, the then current hourly rates
and terms for Services will apply.

 

Only
for critical problems where Customer cannot use the function/program which has
a critical impact on business operation and an immediate circumvention or
solution is required, if ISx determines that on-site resources are required to
fix the defect, ISx may elect to provide such on-site support as required.
If the defect is ultimately determined to be a non-ISx problem, that assistance
is billable.

 

Problem Severity - the following is a definition of problem severities, as seen by
Customer:

 

SEVERITY 1 (CRITICAL) DESCRIPTION

 

Customer
cannot use the function/program, which has a critical impact on the business
operation. An immediate circumvention or solution is required.

 

ISx
will attempt to determine an immediate solution to a severity 1 problem and
will use commercially reasonable efforts to work around the clock to provide a
fix or a temporary circumvention. In case of a temporary circumvention, the
severity level will be renegotiated with the customer.

 

The
ISx support personnel will provide the status of the problem resolution to
customer contact periodically.

 

ISx
target response time: Call backs to Severity calls will occur within 2 hours

 

21

 

Target
resolution time: Action plan within working day. Permanent resolution within 30
days.

 

SEVERITY 2 (MAJOR) DESCRIPTION

 

Customer
can use the function/program, but the business operation is severely
restricted.

 

ISx
target response time: Call backs to Severity 2 calls will occur within 4
business hours.

 

Target
resolution time: Action plan within 3 working days. Permanent resolution within
60 days.

 

SEVERITY 3 (MINOR) DESCRIPTION

 

Customer
can use the function/program with some restrictions on the functions which can
be used. These restrictions do not have a critical impact on the business’s
operations.

 

ISx
target response time: Call backs to Severity 3 calls will occur within 8
business hours.

 

Target
resolution time: Permanent resolution within 180 days. Permanent resolution is
negotiable.

 

4.             
Technical
Assistance - a reasonable
amount of remote assistance is available during ISx’s normal business hours
(excluding local holidays) via telephone, fax, or e-mail to provide the
customer with code-related technical assistance. For example, questions
regarding availability of Code Corrections, Fixes, Program Updates, use,
operation, or the interpretation of the Software’s results.

 

If
ISx determines on-site assistance is required, and the problem is a failure of
the Software to perform according to its then applicable specifications in
the designated operating environment, no charges will apply. If ISx determines
that the problem is due to other causes, or if you expressly request on-site
assistance, the then current ISx hourly rate and terms for Service will apply.

 

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Exhibit 10.39  

 
  MASTER PROFESSIONAL SERVICES AGREEMENT    
    

 
 

LOCAL MATTERS (Supplier)    
    

 
 

TELECOM DIRECTORIES LIMITED (Telecom)    
    

   TABLE OF CONTENTS  

	1	 	ADDITIONAL DEFINITIONS	 	3
	

2	
 	

AGREEMENTS	
 	

4
	

3	
 	

TERM	
 	

4
	

4	
 	

DELIVERABLES	
 	

5
	

5	
 	

CONTRACT MILESTONES	
 	

5
	

6	
 	

ACCEPTANCE	
 	

6
	

7	
 	

SUPPLIER OWNED DELIVERABLES	
 	

7
	

8	
 	

TELECOM OWNED DELIVERABLES	
 	

8
	

9	
 	

INTELLECTUAL PROPERTY INDEMNITY	
 	

8
	

10	
 	

LIABILITY	
 	

9
	

11	
 	

INSURANCE	
 	

9
	

12	
 	

RISK MANAGEMENT	
 	

9
	

13	
 	

CHANGE CONTROL	
 	

11
	

SCHEDULE A—FORM OF SOW	
 	

13
	

1	
 	

OPTIONAL [RELATED DOCUMENTS]	
 	

13
	

2	
 	

TERM AND TERMINATION	
 	

13
	

3	
 	

DELIVERABLES	
 	

14
	

4	
 	

TELECOM REQUIREMENTS	
 	

14
	

5	
 	

OPTIONAL [LICENCE TERMS]	
 	

15
	

6	
 	

PROFESSIONAL SERVICES	
 	

15
	

7	
 	

OPTIONAL [PROJECT MANAGEMENT SERVICES]	
 	

15
	

8	
 	

CONTRACT MILESTONES	
 	

17
	

9	
 	

CHARGES	
 	

18

2

  

	Date:	 	2006	 	 

	

	PARTIES

	

	LOCAL MATTERS at
 1221 Auraria Parkway

Denver

CO 80204 (Supplier)

	

	TELECOM DIRECTORIES LIMITED at Wellington, New Zealand (Telecom)

	

	BACKGROUND

	A.
	Concurrently
with this Master Professional Services Agreement, the parties agreed to the General Terms executed by the parties hereto that are incorporated into their agreements, from
time to time, including this Master Professional Services Agreement (the General Terms).

	B.
	Under
this Master Professional Services Agreement, Supplier may from time to time agree to provide IT related services to Telecom as described in individual Statements of Work
(SOWs).

	C.
	The
parties agree that the SOW dated 9 May 2006 and attached to this Master Professional Services Agreement as Appendix 1 shall be deemed to be the first SOW executed
under this Master Professional Services Agreement and accordingly the terms and conditions of this Master Professional Services Agreement and the General Terms shall be incorporated into that SOW. For
the avoidance of doubt the parties agree that all services performed under this SOW have been delivered by Supplier and accepted by Telecom.

	

	AGREEMENT

 
	1
	 ADDITIONAL DEFINITIONS

	

	Words
defined in the General Terms will have the same meaning in this Master Professional Services Agreement and each SOW. Additionally, in this Master Professional
Services Agreement and each SOW the following capitalized terms will have the following meanings:

	

	Acceptance and Accepted, in relation to any Deliverable, means that Telecom
has accepted (or has been deemed to have accepted) the Deliverable in accordance with clause 6 (Acceptance).

	

	Agreement means this Master Professional Services Agreement (including its Schedules), the Requirements, and the General
Terms.

	

	Associated SOW means any SOWs that are expressed, in any SOW, to be "associated" with one another.

	

	Contract Milestone means all or any of the performance milestones and their associated dates for Supplier or Telecom (as
the case may be) as specified in the relevant SOW.

	

	Deliverable means all or any of the items described as "deliverables" in the relevant SOW, provided, however, that
Deliverables expressly exclude Software.

	

	Delivery Notice means written notice from Supplier to Telecom, given together with Supplier's provision of a Deliverable,
that the Deliverable is ready for its User Acceptance Tests.

	

	General Terms has the meaning given to it in the Background section of this Master Professional Services Agreement.

	

	Impact Assessment has the meaning given to it in clause 13 (Change Control).

	

	Risk Assessment has the meaning given to that term in clause 12.1 (Supplier to assess risks). 

3

 
	

	Requirements in relation to any Deliverable means Telecom's business, functional, non-functional, operational,
performance and other requirements for that Deliverable as specified in the relevant SOW.

	

	Software means any computer software (including, without limitation, modifications, updates, upgrades and bug fixes)
licensed or provided by, or to be licensed or provided by, Supplier to Telecom under the terms of a separate licence agreement to be entered into between the parties.

	

	SOW or Statement of Work means a document entitled "SOW" or "Statement of
Work" executed by both of the parties hereto and expressly incorporating the provisions of this Agreement, as amended from time to time, a form of which is attached hereto as Schedule A.

	

	Supplier Owned Deliverable means any Deliverable other than a Telecom Owned Deliverable which is to be licensed to Telecom
as specified in the Agreement or relevant SOW.

	

	Supplier Pre-Existing IP means any Intellectual Property right, title or interest in a Deliverable which is
either:

	(a)
	owned
by, licensed to or in the possession of Supplier on or prior to the commencement of the relevant SOW; or

	(b)
	developed
by, licensed to or in the possession of Supplier after the commencement of the relevant SOW, but not in relation to the relevant SOW.

	

	Telecom Owned Deliverable means any Deliverable that is to be owned by Telecom, as specified in the relevant SOW.

	

	User Acceptance Tests, in relation to any Deliverable, means assessment tests of the Deliverable to determine whether the
relevant Deliverable has the performance, functionality and attributes as described in the Requirements.

	

	Warranty Period in relation to any SOW means ninety (90) days following final Acceptance of all Deliverables under
that SOW unless agreed otherwise in the relevant SOW.

	2
	AGREEMENTS

	2.1
	SOWs

All Deliverables requested by Telecom shall require a SOW to be executed by both parties. Telecom and Supplier may from time to time agree to SOW's which, on their execution, will be deemed part of
this Agreement.

	2.2
	Precedence

In the event of any conflict between the various parts of this Agreement, the following descending order of precedence shall apply, unless the context otherwise requires:

	(a)
	the
relevant SOW;

	(b)
	the
Schedules;

	(c)
	this
Master Professional Services Agreement (excluding the Schedules); and

	(d)
	the
General Terms.

	3
	TERM

	3.1
	This Agreement

This Agreement will commence on the date of its execution by the last of the parties to execute it, and will remain in effect for so long as any SOW is in effect unless terminated in accordance with
the General Terms. 

4

 
	3.2
	SOWs

Each SOW will commence on the date of the last of the parties to execute it and will remain in effect for the term specified in that SOW.

	3.3
	Associated SOWs

If either party has the right to terminate any SOW, it will also have the right to terminate, on the same terms, all or any of that SOW's Associated SOWs.

	3.4
	Survival

The following clauses will remain in full force and effect following the termination or expiry of all or any part of this Agreement: clauses 1(Definitions), 2.2 (Procedure) 6.8 (Warranty period), 7
(Supplier Owned Deliverables), 8 (Telecom Owned Deliverables), 9 (Intellectual Property Indemnity) and 10 (Liability).

	4
	DELIVERABLES

	4.1
	Supplier to provide

Supplier will provide the Deliverables in accordance with the relevant SOW. Each SOW will reasonably identify all material activities and resources necessary, including those of any other person, to
achieve successful and timely completion and Acceptance of the Deliverables.

	4.2
	Telecom to assist

Telecom will provide such assistance as is specified in the relevant SOW as is reasonably necessary for Supplier to perform its obligations hereunder, or as otherwise agreed to by the parties.

	5
	CONTRACT MILESTONES

	5.1
	Obligation to meet Contract Milestones

Each party agrees to meet each of its Contract Milestones, except only to the extent it is:

	(a)
	excused
in accordance with the Force Majeure provisions of the General Terms;

	(b)
	acting
reasonably on the express instructions of the other party or its contractors; or

	(c)
	unable
to do so due to any breach or negligence by or on behalf of the other party or its contractors.

	5.2
	Notice of slippage

If either party anticipates any delay (for any reason) in meeting any of its Contract Milestones, it will give the other party written notice of the anticipated delay as soon as is reasonably
practicable.

	5.3
	Fixing slippage

If either party reasonably believes that the other party may fail to meet a Contract Milestone, the first party may give written notice to that effect to the other party specifying the reason for its
belief and the changes that it reasonably believes are necessary (including changes to the timetable or resources provided by either party under this Agreement) so that the Contract Milestone may be
met. Within 3 Working Days of such notice, the other party will notify the first party in writing the extent to which it accepts such changes and, to the extent it does not, why it does not. The
parties may agree to extend the Contract Milestone a reasonable length through good faith, prompt negotiation Except as allowed in the previous sentence, notice under this clause will not excuse the
other party from its obligation to meet its Contract Milestones or from any consequences of delay.

	5.4
	Remedies for Supplier's delays

If any Contract Milestone of Supplier is not met other than as permitted under Clause 5.1 

5

 

(Obligation
to meet Contract Milestones) then (without prejudice to any other rights of or remedy), Telecom may terminate the SOW concerned on such date as Telecom specifies in its notice as allowed
in Section 10 of the General Terms. Unless otherwise provided in an applicable SOW, in the event of such termination: 

	(i)
	Telecom
may, on or before the termination date, return to Supplier all or any Deliverables previously provided under the applicable SOW and, where applicable, title will
revert to Supplier accordingly; and

	(ii)
	Supplier
will, immediately following the termination date; repay all Charges previously paid by Telecom under the terminated SOW, other than Charges relating to
Deliverables retained by Telecom following the termination date.

	

	Supplier
will promptly pay Telecom liquidated damages for the relevant delay at the rate (excluding GST) set out in the SOW (if any).

	5.5
	Remedies for Telecom's delays

If any Contract Milestone of Telecom is not met other than as permitted under clause 5.1 (Obligation to meet Contract Milestones), then Supplier's sole remedy/remedies for such delay (other
than as expressly provided elsewhere in this Agreement) will be an extension of any Contract Milestone that Supplier is prevented from meeting as a result of such delay by the period during which the
delay prevented Supplier from meeting its Contract Milestone. If any extension of a Contract Milestone of Telecom exceeds twenty (20) days then the parties will negotiate in good faith a
partial payment of the fees related to the affected Contract Milestone.

	6
	ACCEPTANCE

	6.1
	Deliverables Testing

Both parties will agree in writing to an acceptance test plan pursuant to which Telecom will perform User Acceptance Tests prior to commencement of any User Acceptance Tests.

	6.2
	Delivery for user acceptance testing

When both parties reasonably consider that a Deliverable is capable of passing its User Acceptance Tests, either on first delivery of the Deliverable in accordance with this clause, or following its
correction in accordance with clause 6.6 (Acceptance failure and rework), Supplier will deliver the Deliverable to Telecom together with a Delivery Notice (Delivery for
Testing).

	6.3
	User acceptance tests

Beginning upon the dates of the Delivery for Testing, Telecom will have thirty (30) days (Test Period) to perform the User Acceptance Tests on
the Deliverable unless specified otherwise in the relevant SOW. No Deliverable will fail its User Acceptance Tests to the extent such failure relates to any:

	(a)
	modification
to the Deliverable by or on behalf of Telecom, that was not approved by or on behalf of Supplier; or

	(b)
	negligence,
default, damage or interference caused by or on behalf of any person other than Supplier or its Subcontractors.

	6.4
	Notification of pass/fail

No later than the completion of the User Acceptance Tests, Telecom will notify Supplier in writing whether the Deliverable has, in Telecom's reasonable discretion:

	(a)
	passed
its User Acceptance Tests, in which case the Deliverable will be taken to be accepted; or 

6

 

	(b)
	failed
its User Acceptance Tests, in which case the provisions of clause 6.6 (Failure and rework) will apply.

	6.5
	Deemed acceptance

Telecom will be deemed to have accepted the Deliverable if Telecom fails to notify Supplier in writing prior to the end of the Test Period whether the Deliverable has passed or failed its User
Acceptance Tests.

	6.6
	Acceptance failure and rework

If Telecom notifies Supplier in accordance with clause 6.4 (Notification of pass/fail) of any failure of a Deliverable to pass its User Acceptance Tests, Supplier will use reasonable efforts to
correct all such failures and resubmit the Deliverable to Telecom in accordance with clause 6.2 (Delivery for user acceptance testing).

	6.7
	Remedy for acceptance failure

If any Deliverable was not delivered to Telecom in a form that was capable of passing its User Acceptance Tests (as subsequently determined, if necessary, in accordance with this Agreement) by its
third Delivery for Testing, then Telecom may (without prejudice to any other remedy available to it) do any one or more of the following by providing notice in writing to Supplier within one month of
the date of the third Delivery for Testing:

	(a)
	accept
all or part of the Deliverable subject to a reduction in the Charges as reasonably agreed to by the parties;

	(b)
	deem
the failure to be a breach of the SOW concerned; and/or

	(c)
	terminate
the SOW under which the rejected Deliverables were created on such date as Telecom specifies in its notice. In the event of such termination;

	(i)
	Telecom
may, on or before the termination date, return to Supplier all Deliverables previously provided under the relevant SOW and title will revert to Supplier
accordingly: and

	(ii)
	Supplier
will, immediately following the termination date, repay all Charges previously paid by Telecom, other than Charges relating to Deliverables retained by Telecom
following the termination date.

	6.8
	Warranty Period

Notwithstanding Acceptance of any Deliverable, Supplier will use commercially reasonable efforts to correct any failure of the Deliverable to meet its Requirements that is notified by Telecom to
Supplier in writing within the Warranty Period provided that where the failure is related to a standard, non customised Supplier product, Supplier will use commercially reasonable efforts to correct
any material failure to substantially meet its specifications or provide an alternative workaround.

	6.9
	Virus Protection

Supplier will use commercially reasonably efforts to ensure that it (and its Subcontractors) does not directly or indirectly introduce any computer viruses, worms, software bombs or other similar
items in the Deliverables or Services or Telecom's systems.

	7
	SUPPLIER OWNED DELIVERABLES

	

	As
between Supplier and Telecom, Supplier will own all right, title, and interest in and to all Supplier Owned Deliverables (and all Intellectual Property therein) and all
Supplier Pre-Existing Intellectual Property. Except as otherwise provided in the relevant SOW, Supplier grants Telecom and its Affiliates a perpetual, non-exclusive
non-transferable right to use, copy and modify each 

7

 

Supplier
Owned Deliverable (but expressly excluding any Software) solely for its internal business purposes. 

	8
	TELECOM OWNED DELIVERABLES

	8.1
	Ownership (except for Supplier Pre-Existing IP)

All Intellectual Property right, title or interest which may subsist in any Telecom Owned Deliverable (other than any Supplier Pre-Existing IP in that Deliverable) will vest absolutely and
exclusively in Telecom on its creation in material form and without the need for any further act by Telecom except as required by law.

	8.2
	Use of Supplier Pre-Existing IP

Ownership of any Supplier Pre-Existing IP in a Telecom Owned Deliverable remains with Supplier, but Supplier grants Telecom a non-exclusive, non-transferable
perpetual and royalty free licence to all Intellectual Property Rights in that Supplier Pre-Existing IP in a Telecom Owned Deliverable, but expressly excluding any Software, but only to
the extent necessary to enable Telecom to use, copy, modify, sublicense and distribute Telecom Owned Deliverables.

	8.3
	Moral rights

Each Supplier waives, and will use its reasonable efforts to have its Subcontractors' Personnel (prior to the creation of the Moral Rights) waive all Moral Rights in each Telecom Owned Deliverable
(other than any Supplier Pre-Existing IP in that Deliverable). Moral Rights means the rights of the author of a copyrighted work (including any right to be identified as the author of the
work or to object to derogatory treatment of the work) in any jurisdiction.

	9
	INTELLECTUAL PROPERTY INDEMNITY

	9.1
	Indemnity

Supplier will indemnify and hold Telecom harmless against all actions, proceedings, losses, liabilities, damages, claims, demands, costs, (including reasonable legal expenses) suffered or incurred by
Telecom arising out of or in connection with any third party claims alleging that a Deliverable infringes or misappropriates a U.S. or New Zealand patent, copyright, or trade secret (each, a "Claim"),
and will pay all final judgements awarded or settlements agreed to by Supplier on such Claims. Supplier will not be liable under this clause 9.1 to the extent the Claim arises out of or is
related to (i) a modification of a Deliverable which is not recommended, approved or provided by or on behalf of Supplier or its authorized agent, (ii) a combination of the Deliverable
with any third party software or equipment not specified or recommended under this Supply Agreement (including the Statements of Work) or for which Telecom reasonably should have known the Deliverable
should not have been combined, where such combination is the cause of such infringement, (iii) the use of a version of a Deliverable other than the then-current version which has
been provided to Telecom if the infringement would have been avoided by use of the then-current version; (iv) use or exploitation of a Deliverable which Telecom reasonably should
have known would exceed the rights and benefits provided by Supplier under this Supply Agreement; (v) or the incorporation into a Deliverable of any feature or information provided by Telecom.

	9.2
	Procedure

In the event of any Claim, Telecom will:

	(a)
	promptly
notify Supplier in writing of the Claim and must not make any admission or purport to settle any Claim without Supplier's prior written consent (which will not be
unreasonably withheld or delayed);

	(b)
	at
Supplier's request and expense, grant Supplier sole control of the defence, negotiation of settlement, and litigation resulting from the Claim, provided that Telecom will be
entitled to be represented at Telecom's sole cost, and be consulted on, all such negotiations and litigation; and 

8

  

	(c)
	at
the request of Supplier, provide reasonable assistance with such defence, negotiation of settlement or litigation, and Supplier must reimburse Telecom for its reasonable staff
costs and out of pocket expenses of so doing.

	9.3
	Remedies

If any Claim prevents or threatens to prevent the supply or use of any Deliverable, then Supplier must (at its own election and expense) either:

	(a)
	obtain
the right to continue providing the relevant Deliverable to Telecom or the right for Telecom to use or continue to use the relevant Deliverable;

	(b)
	modify
the relevant Deliverable so that it becomes non-infringing;

	(c)
	replace
the relevant Deliverable with another non-infringing item.

	(d)
	If
none of (a), (b) or (c) is commercially reasonable, terminate the license for the infringing Deliverable (if any) and refund the Charges paid for that infringing
Deliverable.

	

	Supplier
must ensure that any action under (a)—(c) above does not materially affect the performance of the Deliverable or Telecom's use of it. This
Section 9 states Supplier's entire liability and Telecom's sole and exclusive remedy for any Intellectual Property infringement.

	10
	LIABILITY

	10.1
	No indirect damages

Notwithstanding any other provision of this Agreement, neither party will be liable to the other (under the law of contract, tort, equity or otherwise) for any damages arising out of or in connection
with this Agreement that are indirect (meaning not arising in the ordinary course as a direct, natural or probable consequence of the act or omission complained of), regardless of the cause of such
damages or whether the other party had been advised of the possibility of such damage.

	10.2
	Direct damages limited

Subject to clause 10.1 (No indirect damages), each party's liability to the other for damages (under the law of contract, tort, equity or otherwise) arising out of or in connection with any SOW
will be limited in aggregate:

	(a)
	in
the case of Supplier, to NZD10 million; and

	(b)
	in
the case of Telecom the lesser of:

	(i)
	amount
payable by Telecom to Supplier under this Agreement; and

	(ii)
	NZD50,000
per event or series of related events, but not more than a total of NZD100,000 for any events which occur in any 12 month period.

	

	provided
that neither party's liability will be limited under this clause:

	(c)
	in
the case of fraud;

	(d)
	in
relation to any unauthorised use of the other party's Intellectual Property or Confidential Information; or

	(e)
	in
relation to liability under clause 9 (Intellectual Property Indemnity).

	11
	INSURANCE

	11.1
	Required insurance

Supplier will maintain for the term of the Supply Agreement, and for a period of 6 months after, public liability and professional indemnity insurance cover with a reputable insurance company 

9

 

for
a sum not less than the higher of NZD10 million or the maximum amount its limitation of liability under the Supply Agreement for any one claim or series of claims arising out of one event. 

	11.2
	Certificate of insurance

At Telecom's request, Supplier will, within one month of the date of the signing of the Supply Agreement and promptly following each policy's renewal, provide a certificate of insurance from its
insurance company certifying that Supplier has effected such insurances.

	11.3
	Insurance by Telecom

If Supplier defaults on its obligations under clause 11 (Insurance), unless Supplier remedies such default within 20 Working Days of Telecom's written notice requiring it to do so, Telecom will
be entitled to obtain the relevant insurance, and to either deduct the insurance premiums and any excess from the money payable to Supplier under the applicable Supply Agreement or to be promptly
reimbursed for such costs by Supplier (who agrees to do so).

	12
	RISK MANAGEMENT

	12.1
	Supplier to assess risks

Prior to execution of each SOW, Supplier will provide Telecom with a written assessment of all reasonably foreseeable risks which may impact on Supplier meeting its obligations under that SOW
(Risk Assessment).

	12.2
	Content of Risk Assessment

The Risk Assessment must (as a minimum) contain the following information:

	(a)
	a
description of all actually known risks in each of the following categories (together, the Risks):

	(i)
	project
management;

	(ii)
	personnel
and resources;

	(iii)
	technical
or technological;

	(iv)
	commercial
and business; and

	(v)
	any
other risks.

	(b)
	the
probability of each of the Risks occurring;

	(c)
	for
each Risk, the likely impact if that Risk occurred; and

	(d)
	the
processes and preventative measures Supplier has taken (or will take) to minimise or eliminate the possibility of each of the Risks occurring.

	12.3
	Telecom may request further Risk minimisation measures

At any time after receiving the Risk Assessment, Telecom may request that Supplier implement reasonable processes or preventative measures in order to minimise or eliminate the possibility of a Risk
occurring. The implementation of such processes or measures:

	(a)
	will
not relieve Supplier from any of its obligations under this Agreement; and

	(b)
	will
not constitute a defence if Supplier would otherwise be liable to Telecom under this Agreement.

	

	The
allocation of reasonable costs of such implementations will be negotiated in good faith by the parties. 

10

 
	13
	CHANGE CONTROL

	13.1
	Changes require written request

Except for addressing slippage under Section 5.3, changes to a SOW must be made in accordance with this clause 13 (Change Control). Requested changes may be initiated:

	(a)
	by
Telecom by submitting a written request for the change to Supplier (subject to the remainder of this clause 13); or

	(b)
	by
Supplier by submitting an Impact Assessment to Telecom.

	13.2
	Impact Assessment

Supplier will submit an Impact Assessment to Telecom whenever (i) Supplier wishes to make a change to a SOW, or (ii) within 14 days after the receipt of a written change request
from Telecom under clause 13.1(a) (Changes require written consent).

	

	Each
impact assessment (an Impact Assessment) will contain:

	(a)
	Background information: background information, including:

	(i)
	a
unique reference number and the title of the change request;

	(ii)
	the
originator of and date of the change request;

	(iii)
	the
reason for the change;

	(iv)
	a
summary of the change;

	(b)
	Impact on SOW: the impact, if any, of the change the SOW including, without limitation:

	(i)
	any
project plan;

	(ii)
	any
Contractual Milestones;

	(iii)
	any
Deliverables;

	(iv)
	Personnel;

	(v)
	the
Charges; or

	(vi)
	any
contractual issues.

	(c)
	Risk Assessment: an updated Risk Assessment; and

	(d)
	Other matters: the date of expiry of validity of the Impact Assessment, and provision for signature by Telecom and Supplier.

	

	Supplier
agrees that each Impact Assessment will not impose or imply any unreasonable or arbitrary conditions in any response to any Telecom change request.

	13.3
	Telecom to notify whether request accepted

Telecom may, in respect of each Impact Assessment and within the period of the validity of that Impact Assessment, evaluate the Impact Assessment and as appropriate either:

	(a)
	reasonably
request further information related to the Impact Assessment, which will be supplied by Supplier promptly;

	(b)
	approve
the Impact Assessment, in which case the SOW will be amended in accordance with the Impact Assessment on its signature by both parties; or 

11

 

	(c)
	notify
Supplier of the rejection of the Impact Assessment, in which case the SOW will continue in force unchanged. 

	EXECUTION	 	 
	

For TELECOM DIRECTORIES LIMITED by:	
 	

For LOCAL MATTERS, INC. by:
	

 	
 	

 
	/s/  DUDLEY ENOKA      
 Signature	 	/s/  PERRY EVANS      
 Signature
	

 	
 	

 
	Dudley Enoka (GM)
 Name / position	 	Perry Evans/CEO
 Name / position
	

 	
 	

 
	April 8, 2006
 Date	 	August 4, 2006
 Date

12

 

SCHEDULE A—FORM OF SOW  

 
 

SOW FOR [INSERT PROJECT NAME]    
    

	Reference:	[Professional Services Agreement number / SOW number]	 

	

 	
 	

 	
 	

 
	Date:	 	20    	 	 

LOCAL MATTERS at Denver, Colorado, U.S.A. (Supplier) and TELECOM DIRECTORIES
LIMITED at Wellington, New Zealand (Telecom) executed a Master Professional Services Agreement dated
[insert date] (Master Agreement) under which Supplier may from time to time
provide professional services to Telecom under separately executed SOWs, such as this SOW. 

	14
	OPTIONAL [RELATED DOCUMENTS]

	14.1
	Optional [Associated SOWS]

This SOW is associated with the following other SOWs (each, together with this SOW, being an Associated SOW):

	(a)
	[TBC]

	

	[SOWs should be associated for the purpose of setting Supplier's limitation of liability and enlarging Telecom's right to terminate.
Telecom expects SOWs to be "associated" if the SOWs are within the scope of the same project.]

	14.2
	Optional [RFP]
 [Note, use if contracted services do not differ significantly from RFP] This SOW
incorporates Telecom's request for proposals
issued on [insert date] and entitled
"[insert title]", as modified by subsequent Telecom correspondence, copies of
which are option 1 [bound together in a volume entitled "Pre-Contractual Correspondence" and (for the purposes of
identification) signed by the parties concurrently with the execution of this Agreement] option 2 [attached in Schedule  [    ]
(Pre-Contractual
Correspondence)](RFP), but only to the extent that the RFP relates to Supplier's obligations
under the remainder of this Agreement.]

	14.3
	Optional [Proposal]
 [Note, use if contracted services do not differ significantly from proposal] This
SOW incorporates Supplier's proposal dated  [insert date] and entitled
"[insert title]", including any modifications that have been accepted by
Telecom, copies of which are option 1 [bound together in a volume entitled "Supplier Proposal" and (for the purposes of identification)
signed by the parties concurrently with the execution of this Agreement] option 2 [attached in Schedule  [    ] (Pre-Contractual
Correspondence)]
(Proposal) but only to the extent that the Proposal relates to Supplier's obligations under the remainder of this Agreement.]

	15
	TERM AND TERMINATION

	15.1
	Term

This SOW will Option 1 where services commenced before execution [be deemed to have commenced on [insert
date] (consideration for which is acknowledged by the parties)] Option 2 where services will commence after execution
[commence on [insert date]] and
will continue until Acceptance of all Deliverables. 

13

 
	15.2
	Convenience termination by Telecom

Telecom may terminate this SOW on twenty (20) Working Days written notice to Supplier. In the event of such termination, Telecom will pay Supplier:

	(a)
	a
Charge for all time reasonably expended by that Supplier and its Subcontractors in relation to its Services since the commencement of this SOW and up to the date of termination,
less any Charges already paid by Telecom to that Supplier in relation to this SOW.

	(b)
	a
Charge for all outstanding reasonable expenses necessarily incurred by Supplier up to the date of termination in performing its obligations under this SOW.

	

	Supplier
will take all reasonable steps to reduce the Charges in paragraphs (a) and (b) above, including by re-assigning its Personnel to other
work wherever practicable. The total Charge payable to a Supplier under this clause will not exceed the total Charges otherwise payable to that Supplier under the terminated part of this SOW.

	16
	DELIVERABLES

	

	[Adapt as required. The following is by way of example only. The timing for provision of the Deliverables is dealt with in the Contract
Milestone section.]

	16.1
	Documents

Supplier will provide the following documentation Deliverables: 

	Document Name
 
	 	Description
	 	Ownership of Deliverable [Note 1]
	 	Terms of Licence

	Eg

Specification	 	 	 	Telecom Owned Deliverable	 	NA
	

 	
 	

 	
 	

Supplier Owned Deliverable	
 	

[Insert name of licence]

	16.2
	[Other?]

Supplier will provide the following other deliverables:

	17
	TELECOM REQUIREMENTS

	

	Telecom's
requirements for the Deliverable[s] at the date of this SOW are Option 1 [as
specified in the [insert name of document] dated [insert
date].] Option 2 [as follows:]

	17.1
	[Deliverable one]

Telecom has the following requirements for this Deliverable: 

	Component
 
	 	Description of Component

	1	 	 
	

2	
 	

 
	

3	
 	

 

14

 
	17.2
	[Deliverable two]

Telecom has the following requirements for this Deliverable: 

	Component
 
	 	Description of Component

	1	 	 
	

2	
 	

 
	

3	
 	

 

	18
	OPTIONAL [WARRANTY PERIOD]

	

	[See definition of "Warranty Period". Consider including a period greater than three (3) months in the context of the relevant
SOW.]

	19
	OPTIONAL [TEST PERIOD]

	

	[Include a timeframe here if different time period for User Acceptance Testing to that specified in clause 6.3 of the
MPSA]

	20
	OPTIONAL [LICENCE TERMS]

	

	[Either describe the licence terms for any Supplier Owned Deliverables, or rely on the broad licence in clause 7 (Supplier Owned
Deliverables.]

	21
	PROFESSIONAL SERVICES

	

	[Insert as required, eg "...meet with Telecom users to discuss requirements, etc". The timing for provision of the Services
is dealt with in the Contract Milestone section.]

	22
	OPTIONAL [PROJECT MANAGEMENT SERVICES]

	22.1
	Optional [Steering committee]

The Steering Committee is responsible for:

	(a)
	resolution
of issues escalated by either Project Manager; and

	(b)
	committing
resource as necessary.

	

	The
Project Steering Committee members are: 

	Role
 
	 	Telecom representative
	 	Supplier representative

	Sponsor	 	 	 	 
	

Business	
 	

 	
 	

 
	

Project	
 	

 	
 	

 
	

Technical	
 	

 	
 	

 
	

[Commercial]	
 	

 	
 	

 
	

[Legal]	
 	

 	
 	

 
	

[Others]	
 	

 	
 	

 

	22.2
	Project Managers

For the duration of this SOW, each party will appoint a project manager to oversee the performance of that party's obligations under this SOW (a Project
Manager). Telecom may rely on the authority of Supplier's Project Manager to act on behalf of Supplier in all respects in relation to this SOW. 

15

 
	22.3
	Project team

The members of the core project team are: 

	Party
 
	 	Role
	 	Name
	 	Start Date
	 	Time Impact

(H/M/L)

	Supplier	 	Project Manager
 Optional [(Key Position)]]	 	[Insert name]	 	 	 	 
	

Telecom	
 	

 	
 	

 	
 	

 	
 	

 

	22.4
	Other resources

Other resources required for the project are: 

	Party
 
	 	Role
	 	Name
	 	Start Date
	 	Time Impact

(H/M/L)

	

 	
 	

 	
 	

 	
 	

 	
 	

 
	    	 	 	 	 	 	 	 	 
	

 	
 	

 	
 	

 	
 	

 	
 	

 
	    	 	 	 	 	 	 	 	 
	

 	
 	

 	
 	

 	
 	

 	
 	

 
	    	 	 	 	 	 	 	 	 

	22.5
	Key positions

Neither party will remove any of its Personnel from, or appoint new Personnel to, any role that is named as a "key position" above, without the other party's prior written consent, such consent not to
be unreasonably withheld.

	22.6
	Project management methodologies

For this SOW, Supplier will operate in accordance with:

	(a)
	the
project management methodologies and approaches agreed between the parties for this SOW; and

	(b)
	to
the extent that specific methodologies and approaches have not been agreed between the parties, "best practice" standards of project management in New Zealand.

	22.7
	Reporting

Supplier's Project Manager will report (in writing) to Telecom's Project Manager as required from time to time, including a [weekly] update to Telecom's Project Manager on
Supplier's progress in relation to this SOW for which Telecom's Project Manager is responsible (the Weekly Report). Each Weekly Report must include:

	(a)
	a
detailed statement of Supplier's overall progress on the work required by this SOW;

	(b)
	a
detailed statement of the work to be completed in the next [week];

	(c)
	notification
of:

	(i)
	any
delays, issues, or risks (whether actual or anticipated) which might affect Supplier's performance of its obligations under this SOW;

	(ii)
	the
steps Supplier will take to minimise anticipated delays, recoup time lost due to prior delays, or otherwise minimise the impact of the matters referred to in
sub-paragraph (i) above; 

16

 

	(d)
	a
breakdown of actual costs (including time and materials costs) incurred in the prior [week] for which Supplier proposes to invoice Telecom, and the
anticipated costs for the next [week]; and

	(e)
	a
concise summary of the above information.

	22.8
	Meetings

The parties' Project Managers will meet as required by Telecom's Project Manager from time to time, but no less than [weekly], to discuss the Weekly Report and any other
matters requiring discussion relating to this SOW.

	22.9
	Escalation

If any matter raised in a Weekly Report is not resolved to the satisfaction of Telecom's Project Manager, then Telecom's Project Manager may refer the issue to be resolved at the first escalation
level noted in the table below.

	

	For
each of the levels below, the issue may be referred to the next level by either party at any time. If the issue is not resolved at the final level noted below, then
the dispute resolution provisions of the General Terms shall apply. 

	Level
 
	 	Telecom's representative
	 	Supplier's representative.

	1	 	The Steering Committee, if any, and otherwise [name], [position]	 	[name], [position]
	

2	
 	

[name], [position]	
 	

[name], [position]
	

3	
 	

[name], [position]	
 	

[name], [position]

	23
	CONTRACT MILESTONES

	23.1
	Contract Milestone descriptions

[Adapt as requirements dictate. The following is by way of example only] 

	Description
 
	 	Party
	 	Begins/

Ends
	 	Timing

	 	 	Supplier	 	Ends	 	Option 1 [Insert date]
	

 	
 	

 	
 	

 	
 	
Option 2 [Within X days of the Commencement Date]
	

 	
 	

Supplier	
 	

Ends	
 	

 
	

 	
 	

Telecom	
 	

Ends	
 	

 

	23.2
	Liquidated damages

Liquidated damages amount to [X%] of the Charges for [each day/week of delay / each delay and each day/week thereafter], up to a maximum of 20% of the
Charges in relation to the relevant Deliverable. Telecom will be entitled to set off this credit from any Charges it owes Supplier. The imposition of this credit will not relieve Supplier of its
obligations or limit any other rights or remedies of Telecom.

	

	Supplier
acknowledges that these liquidated damages represent a genuine pre-estimate of the minimum loss and/or costs that Telecom expects to incur or suffer
(including internal costs) in connection with Supplier's failure to achieve a Contract Milestone, and that such liquidated 

17

 

damages
are fair and reasonable. [Note, consider whether other impacts of delay or non-delivery should be recoverable. To be enforceable, the credit
must be a genuine pre-estimate of Telecom's losses. C&SM should keep a file note of how the credit was calculated.] 

	24
	CHARGES

	24.1
	Optional [Fixed Charges]

A lump sum of $[    ] (excluding GST) to be paid in the following proportions on the following milestones (expected dates are included for reference only): 

	Payment
 
	 	Milestone
	 	Expected Date

	[    ]%	 	Signing of this SOW	 	Date
	[    ]%	 	Acceptance of Design Specification	 	Date
	[    ]%	 	Acceptance of Release #1	 	Date
	[    ]%	 	Acceptance of Release #2	 	Date
	[    ]%	 	Completion of Warranty Period	 	Date

	24.2
	Optional [Time based Charges]

Supplier's Charges for services per hour (up to 8 hours per day) for Telecom are set out below. Supplier agrees to provide Telecom with the Charges listed below (as updated from time to time in
accordance with this clause). At the expiry of the initial 12 months after the commencement of this SOW, such Charges may be amended by Supplier from time to time subject to the following
requirements. Any such increase will:

	(a)
	be
limited to once per 12 month period;

	(b)
	be
notified to Telecom in writing at least three months prior to the increase taking effect;

	(c)
	not,
in any 12 month period, exceed the lower of 5% and the percentage increase in the CPI (All Groups) index for the previous 12 months of the latest CPI report;

	(d)
	not
apply to any Services or Deliverables provided prior to such increase taking effect; and

	(e)
	be
consistent with any other relevant requirement under the Agreement. 

	Grade
 
	 	Description
	 	Rate

	

 	
 	

 	
 	

 
	    	 	 	 	 
	

 	
 	

 	
 	

 
	    	 	 	 	 
	

 	
 	

 	
 	

 
	    	 	 	 	 

	24.3
	Expenses

Supplier may not charge Telecom for any expenses, unless agreed otherwise with Telecom in writing and in advance of the expense being incurred.

	24.4
	Optional [Calculation of time based Charges]

Where any Charges are payable on the basis of time spent by Supplier's Personnel, Supplier will complete each assigned task in as reasonably economical and expeditious a manner as possible so as to
minimise the such charges, consistent with Supplier's other obligations under this Agreement. Supplier will provide Telecom with all information Telecom may reasonably request to check the time spent,
the rate charged for time and material work and the overall computation of such charges. Telecom will not be required to make payment of Charges for which Supplier is unable to provide appropriate
timesheets, third party invoices and any other reasonable supporting documentation. 

18

 
	24.5
	Open Book Pricing

Supplier will maintain an open book approach in relation to the Agreement to enable Telecom to monitor, scrutinise and verify the accuracy of all Charges, or any new Charges proposed by it. On request
by Telecom from time to time, Supplier will provide to Telecom an open book account of its Charges and/or any proposed Charges, setting out full and transparent details of each component of the
costings (including any profit margins or discounts applicable to those costings). 

	EXECUTION	 	 
	

For TELECOM DIRECTORIES LIMITED by:	
 	

For LOCAL MATTERS, INC. by:
	

 	
 	

 
	
 Signature	 	
 Signature
	

 	
 	

 
	
 Name / position	 	
 Name / position
	

 	
 	

 
	
 Date	 	
 Date

19

  

 
 

GENERAL TERMS    
    

	Dated	 	8/4/2006	 	 

	

	PARTIES

	

	TELECOM DIRECTORIES LIMITED at Wellington, New Zealand (Telecom)

	

	Local Matters, Inc. at 1221 Auraria Parkway

	

	Denver
(Supplier)

	

	BACKGROUND

	

	These
General Terms (General Terms) set out the Telecom Directories Limited boilerplate provisions applying to the supply
of information technology products and services generally.

	

	Telecom's
specific requirements for the supply of products and services from Supplier will be contained in separately executed supply agreements incorporating these
General Terms (each such agreement a Supply Agreement).

	

	These
General Terms are executed by Supplier and Telecom for the purpose of identification. The General Terms are not intended to have legal effect, other than to the
extent they are incorporated into a Supply Agreement. 

GENERAL TERMS AND CONDITIONS  

	25
	DEFINITIONS AND CONSTRUCTION

	25.1
	Definitions

In each Supply Agreement, unless the context requires otherwise:

	

	Affiliate of a party, means any person or entity (including any holding company or subsidiary of the party or any member of
its group of companies) from time to time that:

	(a)
	controls
the party;

	(b)
	is
controlled by the party; or

	(c)
	is
controlled by a person that also controls the other party,

	

	where
"control" includes direct or indirect control.

	

	Charges means the amounts payable by Telecom to Supplier, as specified in the Supply Agreement.

	

	Confidential Information means all information, know-how or material in any form relating to or confidential or
proprietary to the provider, or provided by a party (the owner) which becomes known or is provided to the other party (the recipient) as a result of the course of dealings between them which is by its
nature confidential, is designated by a party as confidential or which the recipient ought reasonably know is confidential, including, without limitation, any non-public, commercially
sensitive or secret information relating to owner's business, trade secrets, data, operations, customers, stakeholders, activities, planning, investigations, products, software, services, research and
development and the contents of the Supply Agreement. A recipient of Confidential Information will not have any obligation to the extent the recipient can show the relevant information:

	(a)
	is
part of or enters the public domain through no fault of the receiving party; 

20

 

	(b)
	is
already or becomes in the unrestricted possession of the recipient without there having been any breach of a third party's obligations of confidentiality;

	(c)
	has
been independently developed by the recipient (as evidenced by records in its possession);

	(d)
	is
not intended to be confidential as evidenced by the written agreement of owner; or

	(e)
	legally
must be disclosed, or is required to be disclosed pursuant to the listing rules of any applicable stock exchange, provided that prior to making the disclosure the recipient
has given the owner notice of the request for disclosure and where practical obtained a confidentiality order or similar protection limiting the persons to whom disclosure of the Confidential
Information is made if owner has no effective status on the matter.

	

	Effective Date means August 4, 2006.

	

	Force Majeure Event means any:

	(a)
	act
of God, fire, earthquake, storm, flood, or landslide;

	(b)
	unavoidable
accident, explosion, public mains electrical supply failure, or nuclear accident;

	(c)
	sabotage,
riot, civil disturbance, insurrection, epidemic, national emergency (whether in fact or law) or act of war (whether declared or not);

	(d)
	requirement
or restriction of, or failure to act by, any government, semi-governmental or judicial entity; or

	(e)
	any
other similar event the cause of which is beyond the reasonable control of the party concerned;

	

	but
does not include:

	(f)
	any
event which the party affected could have avoided or overcome by exercising a standard of reasonable care at a reasonable cost; or

	(g)
	a
lack of funds for any reason or any other inability to pay; or

	

	Intellectual Property means all intellectual property rights and interests (including common law rights and interests) in
any jurisdiction including (without limitation):

	(a)
	patents,
trade marks, trade names, service marks, registered designs and all goodwill rights associated with such works, copyright, circuit layouts, domain names, symbols and logos;

	(b)
	applications
and registrations of any item in (a) above; and

	(c)
	know-how,
ideas, concepts, tools, techniques, computer program code, data, inventions, discoveries, developments, trade secrets, information and logical sequences (whether
or not reduced to writing or other machine or human readable form).

	

	GST means:

	(a)
	except
as provided in paragraph (b) below, New Zealand goods and services tax, payable in accordance with the New Zealand Goods and Services Tax Act 1985; or

	(b)
	in
relation to any invoice from Supplier's Australian resident Affiliates to Telecom's Australian resident Affiliates, Australian goods and services tax payable in accordance with a
New Tax System (Goods and Services Tax) Act 1989.

	

	Personnel of any entity means any director, officer, employee, contracted staff member or other worker of that entity or
that entity's Affiliates contractors or agents. 

21

 
	

	Products means the products (including hardware and software) to be provided by or on behalf of Supplier under the Supply
Agreement.

	

	Services means the services to be provided by or on behalf of Supplier under the Supply Agreement.

	

	Subcontractor means any person that performs any of Supplier's obligations under the Supply Agreement, excluding Supplier
employees.

	

	Working Day means any day of the week (other than a Saturday, Sunday or a public holiday observed in Wellington, New
Zealand) between the hours of 8:30am and 5:30pm New Zealand time.

	25.2
	Construction

In each Supply Agreement, unless the context requires otherwise:

	(a)
	Working Days: Anything required by the Supply Agreement to be done on a day which is not a Working Day, may be validly done on the next
Working Day.

	(b)
	Documents: A reference to any document, including these General Terms and the Supply Agreement, includes a reference to that document
as amended or replaced from time to time.

	(c)
	Headings: Headings appear as a matter of convenience and do not affect the construction of the Supply Agreement.

	(d)
	Money: All references to dollars or $                  are
references to New Zealand dollars unless expressly stated otherwise.

	(e)
	Parties: A reference to a party to the Supply Agreement or any other document includes that party's personal representatives/successors
and permitted assigns.

	(f)
	Person: A reference to a person includes a corporation sole and also a body of persons, whether corporate or unincorporate.

	(g)
	Singular, Plural and Gender: The singular includes the plural and vice versa, and words importing one gender include the other genders.

	(h)
	Statutes and Regulations: A reference to an enactment or any regulations is a reference to that enactment or those regulations as
amended, or to any enactment or regulations substituted for that enactment or those regulations.

	26
	TERM

	

	These
General Terms commence on the Effective Date and will remain in effect for so long as any Supply Agreement is in effect.

	27
	AGREEMENT

	27.1
	Supply Agreements

Telecom and Supplier may from time to time agree to enter into a Supply Agreement.

	27.2
	The Agreement

Each Supply Agreement, together with the provisions of these General Terms, will constitute a separate agreement.

	27.3
	Authority to enter

Each party represents that it is authorised to enter into and perform its obligations under the Supply Agreement. 

22

 
	27.4
	Compliance with laws

Each party agrees it will perform all its obligations under the Supply Agreement in compliance with any applicable laws and regulations from any local, provincial, national, state, or federal
government or government agency.

	27.5
	Telecom Affiliates

Each Supply Agreement is entered into by Telecom on its own behalf and for the benefit of its Affiliates and will, with any necessary modifications, apply to the supply of Products and Services to any
Telecom Affiliate and be enforceable by each of them under the Contracts (Privity) Act 1982. Telecom will be solely responsible for all acts and omissions of Telecom's Affiliates, and any acts or
omissions by a Telecom Affiliate, which if committed by Telecom would be a breach of the Supply Agreement, will be deemed to be committed by Telecom and Supplier must avail itself or any and all
rights and remedies directly against Telecom.

	28
	PRODUCTS AND SERVICES

	28.1
	Provision of Products and Service

Supplier will provide the Products and Services in accordance with the Supply Agreement with industry standard standards of diligence, care and attention using Personnel with suitable skills and
experience.

	28.2
	Non-exclusivity

Telecom is not entering into any form of exclusive arrangements with Supplier for supply of products or services by entering into the Supply Agreement. Telecom will not be prevented from obtaining
products or services similar to or the same as those supplied under the Supply Agreement from anyone else. Supplier may provide services and products similar to the Services and Products hereunder to
any third-party.

	29
	POLICIES AND CO-OPERATION

	29.1
	Policies

Supplier will comply with all Telecom's information management and retention policies and practices, technical architecture and product standards and other policies, practices and standards in force
from time to time, provided that Telecom provides Supplier with copies of such policies a reasonable time in advance. If Telecom changes such policies after the Effective Date and such changes
materially impact Supplier in terms of cost or ability to perform under any Statement of Work in effect under a Supply Agreement, then the parties will negotiate in good faith to revise at least the
payment and Contract Milestones contained in the affected Statement of Work to the extent that they are impacted to take into account the effect of the new policies, practices or standards.

	29.2
	Co-operation

Telecom may, from time to time, require other suppliers to provide it with products and/or services in relation to the Supply Agreement. Supplier agrees that it will reasonably co-operate
with such other suppliers (at no additional cost) as reasonably requested by Telecom provided that Telecom binds such other providers to confidentiality obligations at least as protective of Supplier
and its Confidential Information as the terms and conditions contained herein.

	30
	PAYMENT

	30.1
	Charges

Supplier will ensure that all Charges are calculated and applied as set out in the Supply Agreement. 

23

 
	30.2
	Invoicing

Supplier will ensure that each invoice issued by it is:

	(a)
	where
GST is payable, in the form of a valid tax invoice for GST purposes;

	(b)
	fully
itemised and includes all information reasonably required (including purchase order reference) in order to enable Telecom to establish the accuracy of the invoice, including:

	(i)
	reference
to the Supply Agreement under which the invoice is issued;

	(ii)
	the
Charges for and description of each Product and Service being invoiced;

	(iii)
	in
respect of any Charges on a time and rate basis, the relevant times and rates upon which the Charge is based;

	(iv)
	full
details of any approved expenses incurred, together with copies of invoices for such items which have a value greater than $1,000; and

	(v)
	separately
for each charged item, sums due in respect of GST; and

	(c)
	issued
within one month of the date that Supplier completes all services or delivers all deliverables described in or charged under the invoice.

	30.3
	Payment

Telecom will pay Supplier's invoices by the 20th of the month following the month of Telecom receiving Supplier's valid invoice. If Telecom fails to pay any undisputed sum on the due date, Supplier
may issue a reminder notice to Telecom requiring Telecom to pay the undisputed sum. If Telecom fails to pay any undisputed sum within 10 Working Days following receipt of such reminder notice, Telecom
pay interest on that sum at the rate of 1.5% per month, or, if less, the highest rate permitted by applicable law from the due date until the date of actual payment.

	30.4
	Disputed invoices

If Telecom has a genuine good faith dispute in relation to all or any portion of an invoice submitted by Supplier, Telecom may withhold payment of the amount subject to the dispute. If reasonably
necessary, either party may refer the disputed payment to the disputes process set out in clause 32 (Dispute Resolution) for resolution. Telecom will pay the undisputed amount when it becomes
due and payable in accordance with the terms of the Supply Agreement and Supplier will continue to perform its obligations under the Supply Agreement while the dispute is being resolved.

	30.5
	Australian entities

In the case of amounts to be invoiced for Products and Services provided by Supplier to an Australian-based Telecom Affiliate, Supplier will, if requested by Telecom, invoice Telecom's Australian
Affiliate and payment by that Affiliate will fully discharge Telecom's obligation to pay that invoice. If Telecom requests Supplier to invoice Telecom's Australian based Affiliate and the Products and
Services are provided or performed wholly and exclusively to or in Australia, then Supplier may nominate one of its Australian Affiliates to issue the invoice.

	30.6
	Taxes

All amounts set out in the Supply Agreement shall be exclusive of GST and Telecom shall be responsible for paying all applicable GST where Supplier provides Telecom with a valid tax invoice for the
same. Amounts payable are inclusive of all other government taxes, value added taxes, withholding taxes, duties, imposts and levies of a similar nature (Applicable
Taxes), however designated, assessed or levied on Supplier in relation to the Agreement (including penalties thereon). Amounts payable by Telecom are inclusive of all
withholding taxes. Where Telecom is required by law to make payment to Supplier subject to the deduction of withholding taxes, the payment shall be made subject to such deduction or withholding.
Payment by Telecom to the 

24

 

Supplier
of the net amount shall be a complete and final discharge by Telecom of its obligation to make the relevant payment. If any amounts paid by Telecom to Supplier are subsequently assessed by
the relevant taxation or other authority to be subject to any Applicable Taxes, Telecom may in its discretion either: 

	(a)
	withhold an amount equal to such tax assessed so as to set off such amount against any future payments to be made by Telecom; or

	(b)
	require
Supplier to pay an amount equal to such tax assessed in which event Supplier shall, at the request of Telecom, pay such amount to Telecom and Telecom will pay such amount to
the relevant taxation or other authority.

	31
	CONFIDENTIALITY

	31.1
	Confidentiality obligations

The party (Recipient) receiving Confidential Information of the other party (Owner) will (except with
Owner's prior written approval):

	(a)
	not
use the Confidential Information (nor allow it to be used) for any purpose other than to perform its obligations under the Supply Agreement or exercise its rights under the Supply
Agreement;

	(b)
	not
disclose the Confidential Information to anyone other than its:

	(i)
	Personnel
or Affiliates who have a need-to-know for the purposes of fulfilling the Recipient's obligations under the Supply Agreement or exercise
its rights under the Supply Agreement; or

	(ii)
	professional
advisors, upon obtaining a similar undertaking of confidentiality from such advisors.

	(c)
	treat,
and will ensure that its relevant Personnel and Affiliates treat, the Confidential Information with the utmost confidence;

	(d)
	ensure
that its relevant Personnel and Subcontractors are made aware of and are bound in writing by the duty of confidence that is owed by it to the Owner;

	(e)
	store
and keep all materials containing Confidential Information in secure custody (which is appropriate depending upon the form of such materials and the nature of the Confidential
Information); and

	(f)
	without
limiting the above obligations, exercise the same standard of care in the treatment and protection of the Confidential Information as it exercises or should exercise for its
own confidential information of a similar nature and sensitivity.

	(g)
	on
discovery of any breach of this clause by Recipient or any person in possession of Confidential Information through Recipient, immediately notify Owner of such breach and
co-operate with Owner in every reasonable way to help Owner regain possession of the Confidential Information and prevent its further unauthorised use or disclosure.

	31.2
	Press releases and references

Regardless of clause 31.1 (Confidentiality obligations), Supplier will not make any press release or offer any customer reference in relation to the Supply Agreement without Telecom's prior
written consent, which may be withheld, or granted on such conditions, as Telecom determines. In providing any requested customer reference, Telecom may freely disclose information regarding the
Products and Services and Supplier's performance under any agreement with the Telecom or its Affiliates, but may not disclose information regarding Supplier's charges. 

25

 
	32
	DISPUTE RESOLUTION

	32.1
	No court proceedings

Except where a party seeks urgent interlocutory relief, unless a party has first complied with clause 32 (Dispute resolution) it may not commence court proceedings.

	32.2
	Notice of Dispute

If a dispute, disagreement, question or difference arises between the parties in relation to the Supply Agreement (Dispute), either party may give the
other written notice requiring that the Dispute be determined in accordance with this clause 32 (Dispute resolution) (Dispute Notice). A party's
Dispute Notice must specify:

	(a)
	the
nature of the Dispute;

	(b)
	its
representatives for negotiations under clause 32.4 (Negotiations);

	(c)
	its
suggestion for settling the Dispute.

	32.3
	Response to Dispute Notice

The party receiving the Dispute Notice must, within 5 Working Days of receiving the Dispute Notice, reply to the other party by notice in writing (Dispute Notice
Response) specifying:

	(a)
	its
representatives for negotiations under clause 32.4 (Negotiations);

	(b)
	its
suggestion for settling the Dispute.

	32.4
	Negotiations

The parties will enter into negotiations to resolve the Dispute within 10 Working Days of the giving of the Dispute Notice. Negotiations will be held between the following representatives of the
parties (who must have authority to settle the dispute):

	(a)
	initially
between a senior manager of each party who will endeavour to resolve the Dispute within 15 Working Days of the giving of the Dispute Notice;

	(b)
	if
the senior managers do not resolve the Dispute within that time, then between Telecom's Chief Operating Officer Technology and Enterprise (or delegate) and Supplier's CEO (or
delegate), who will endeavour to resolve the Dispute within 25 Working Days of the giving of the Dispute Notice.

	32.5
	Referral to Mediator

If Telecom's Chief Information Officer (or delegate) and Supplier's CEO (or delegate) do not resolve the Dispute within 25 Working Days of the giving of the Dispute Notice, either party may refer the
Dispute to mediation, by written notice to the other (Mediation Notice). The mediation will be conducted as soon as possible in Wellington, New Zealand.
If the parties can not agree on a mediator within 5 Working Days of the giving of the Mediation Notice, the mediator will be selected at the request of either party by the president for the time being
of LEADR (Lawyers Engaged in Alternative Dispute Resolution, New Zealand) or its successor. The terms of reference for the mediation, if not agreed between the parties within 5 Working Days of the
giving of the Mediation Notice, will be the model mediation terms suggested by LEADR.

	32.6
	Arbitration

If the parties are unable to resolve the Dispute by mediation within 20 Working Days of the giving of the Mediation Notice, either party may refer the Dispute to arbitration by a sole arbitrator
(being a New Zealand resident) under the Arbitration Act 1996, by written notice to the other (Arbitration Notice). The arbitration will be conducted as
soon as possible in Wellington, New Zealand. If the parties can not agree on an arbitrator within 5 Working Days of the giving of the Arbitration Notice, the arbitrator will be appointed at the
request of either party by the 

26

 

president
for the time being of the New Zealand Law Society or his/her nominee. Clauses 3 and 6 of the Second Schedule of the Arbitration Act 1996 will apply to any arbitral proceedings under the
Supply Agreement. No other clauses in the Second Schedule will apply. The award in the arbitration will be final and binding. 

	32.7
	Good faith and continuity

Pending resolution of any Dispute, each party will:

	(a)
	make
all reasonable efforts in good faith to resolve the Dispute promptly and in a manner which minimises any impact on the Services and Telecom's business; and

	(b)
	continue
to perform its other obligations under the Supply Agreement, provided the other party is complying with clause 32 (Dispute Resolution) in all material respects.

	32.8
	Withholding of payment

Without prejudice to its other rights and remedies, and despite anything else in the Supply Agreement, if Telecom reasonably believes that Supplier is in breach of the Supply Agreement, Telecom may
withhold payment of all or any part of the Charges, provided that:

	(a)
	Telecom
has detailed the breach in a Dispute Notice or Dispute Notice Response;

	(b)
	the
withheld part is reasonably proportional to the seriousness of the breach; and

	(c)
	the
withheld part is paid to Supplier immediately upon the breach being remedied; and

	(d)
	late
fees will accrue on unpaid amounts pursuant to clause 6.3.

	

	Supplier
will continue to perform its obligations under the Supply Agreement following any such withholding.

	33
	NON-SOLICITATION

	

	If
any party or one of its Affiliates hires (whether as an employee, independent contractor or in any other capacity) any person who was, within three months prior to the
hiring, an employee of the other party or one of its Affiliates and has been hired to carry out the same or substantially similar work to that he/she carried out for the other party or its Affiliate,
the first party agrees to pay the other party a finder's fee equal to 20% of that person's annualised gross compensation at the time he or she left the employment of the other party or its Affiliate.
The foregoing notwithstanding, neither party will be deemed to have breached this clause 9 by (a) hiring personnel responding to generally placed help-wanted advertisements
or job postings or (b) hiring personnel of the other party that have been terminated or notified of pending termination by the other party.

	34
	TERMINATION

	34.1
	Default events

Either party may on written notice to the other party terminate the Supply Agreement if the other party:

	(a)
	has
materially breached any of its obligations under the Supply Agreement and the breach:

	(i)
	if
capable of being remedied, is not remedied within 20 Working Days of receiving written notice by the other party specifying that the notifying party has the right to
terminate under this clause if the breach is not remedied; or

	(ii)
	is
not capable of being remedied.

	(b)
	has
assigned its rights or obligations under the Supply Agreement otherwise than in accordance with clause 37 (Assignment and Subcontracting); 

27

  

	(c)
	goes
into liquidation or has a receiver, administrator, statutory manager or similar officer appointed in respect of it (other than solely for the purpose of amalgamation or solvent
reconstruction);

	(d)
	has
an order made, resolution passed or other step taken against it by any person (other than a frivolous or vexatious step which is contested in good faith by appropriate
proceedings) for its dissolution;

	(e)
	ceases
to carry on its business or threatens to cease trading in a normal manner;

	(f)
	is
unable to pay its debts as they become due as defined by the Companies Act 1993 or as determined under the general law;

	(g)
	is
subject to a Force Majeure Event that continues for more than 10 Working Days.

	34.2
	Partial termination

Where Telecom has the right to terminate the Supply Agreement, Telecom may, at its discretion, partially terminate the Supply Agreement in respect of those parts which have not yet been performed by
Supplier and can reasonably be severed from the remainder of the Supply Agreement.

	34.3
	Transition assistance

Prior to and at Telecom's option for a period of up to 12 months following the expiry or termination of all or any part of a Supply Agreement (the "Disengagement Period"), the Supplier will
provide such assistance and information as is reasonably necessary and requested by Telecom to enable an orderly assumption of the Services by a third party or Telecom and where required by Telecom
negotiate in good faith a disengagement plan to achieve disengagement addressing as a minimum:

	(a)
	Telecom's
access to data and other information which is being used by Supplier in connection with the Services that is reasonable required by Telecom;

	(b)
	Telecom's
access to the know-how, skill and information of Supplier staff engaged on the Services

	(c)
	any
required training to allow Telecom or a third party to commence provision of the Services

	(d)
	Suppliers
full co-operation with Telecom and with any third party whom Telecom proposes will or may do any part of the Services

	

	All
Services which Supplier continues to provide to Telecom during the Disengagement Period will be charged at the same rates which Telecom has paid to Supplier in the
month preceding the expiry or termination of all or any part of the Supply Agreement. Where compliance with this clause 10.3 involves the Supplier applying resources in addition to those
required to provide the Services, Telecom will pay the Supplier its reasonable costs and expenses of complying with this requirement.

	34.4
	Consequences of termination

Following the expiry or termination of all or any part of the Supply Agreement:

	(a)
	all
Charges and other payments outstanding or incurred prior to the date of expiry or termination under the terminated part of the Supply Agreement will become immediately due and
payable;

	(b)
	each
party will either promptly deliver to the other or, at the other party's option, destroy and certify the destruction of, all of the other party's property and Confidential
Information 

28

 

(in
any reasonable format requested by the other party) under the terminated part of the Supply Agreement, as and when reasonably requested in writing by the other party; 

	(c)
	except
in the case of termination by Supplier under clause 34.1 (Default events), Supplier will promptly deliver to Telecom all work in progress on any Telecom Owned
Deliverable in Supplier's or its Subcontractors' possession or control under the terminated part of the Supply Agreement.

	34.5
	Other Supply Agreements

For avoidance of doubt, the expiry or termination of a Supply Agreement will not affect the provisions of these General Terms as they are incorporated into any other Supply Agreement.

	34.6
	Accrued rights

The expiry or termination of all or any part of a Supply Agreement will be without prejudice to the rights of the parties accrued up to the date of such expiry or termination.

	34.7
	Survival

In relation to each Supply Agreement, the provisions of the following clauses will remain in full force and effect following the expiry or termination of all or any part of the Supply Agreement:
clauses 1 (Definitions), 6 (Payment), 31 (Confidentiality), 32 (Dispute Resolution), 34 (Termination) and 15 (General).

	35
	FORCE MAJEURE

	

	Notwithstanding
any other provision of a Supply Agreement, neither Telecom nor Supplier will be liable for any failure or delay in complying with any obligation under the
Supply Agreement (excluding any payment obligation) if:

	(a)
	the
failure or delay arises from a Force Majeure Event;

	(b)
	that
party, on becoming aware of the Force Majeure Event, promptly notifies the other party in writing of the nature of, the expected duration of, the obligation(s) affected by, and
the steps being taken by that party to mitigate, avoid or remedy, the Force Majeure Event; and

	(c)
	that
party uses its commercially reasonable efforts to:

	(i)
	mitigate
the effects of the Force Majeure Event on that party's obligations under the Supply Agreement; and

	(ii)
	perform
that party's obligations which are not affected by the Force Majeure Event.

	

	Performance
of any obligation affected by a Force Majeure Event will be resumed as soon as practicable after the termination or abatement of the Force Majeure Event.

	36
	INFORMATION AND AUDIT

	36.1
	Information

Supplier will retain during the term of the Supply Agreement and for a reasonable period afterwards, accurate records of the Charges made and Services provided.

	36.2
	Audit right

Without prejudice to its obligations under a Supply Agreement, once every 12 months, Supplier will permit Telecom or its authorised representative (in any case the  Auditor) on 10 Working
Days prior written notice to have access to Supplier's records related to Charges under an applicable Supply Agreement to:

	(a)
	examine
records, documents or other relevant information relating to the Charges under a Supply Agreement; and 

29

 

	(b)
	ask
for and receive explanations in respect to such matters from Supplier or such Subcontractors in respect of Charges under the Supply Agreement,

	

	to
the extent necessary for the Auditor to satisfy itself that Charges are accurate. Supplier may request replacement of the Auditor if it reasonably considers the Auditor
is unsuitable due to competitive conflict.

	

	In
the event that Telecom reasonably requires further records, documents or other relevant information relating to a Supply Agreement in order to satisfy itself that
Supplier's obligations under the Supply Agreement and any contractual terms, regulations, statutory provisions and the like affecting Telecom and relating to the Supply Agreement are being complied
with, Supplier agrees to promptly provide such information to Telecom subject to Telecom providing a reasonable explanation as to why such information is required. Supplier agrees that it will not
unreasonably withhold such information from Telecom.

	36.3
	Access conditions

Access will be granted to the Auditor at any time during which the relevant premises are ordinarily open for business, provided that (i) any authorised representative of Telecom has first
produced to Supplier any necessary authorisation from Telecom; (ii) any access by Telecom will not unreasonably disrupt Supplier's normal business operations and (iii) Auditor agrees to
comply with all reasonable requirements of Supplier stipulated for the purpose of protecting the confidentiality of information.

	37
	ASSIGNMENT AND SUBCONTRACTING

	37.1
	Assignment by the parties

Neither party will be entitled to directly or indirectly (including due to, or by way of, a change of control) assign, transfer or otherwise dispose of any of its rights or obligations under a Supply
Agreement, except:

	(a)
	Telecom
may at any time on notice to Supplier assign all or any part of the Supply Agreement to any Telecom Affiliate or any third party providing services to Telecom, provided that
the assignee undertakes to Supplier to fully perform and be bound by the Supply Agreement and, in Telecom's reasonable opinion, the assignee is not a competitor of Supplier and is able to pay any
Charges as they become due and payable; or

	(b)
	with
the prior written consent of the other party, which consent will not be unreasonably withheld or delayed (which, in the case of the assignee being a competitor of either party,
may be withheld by that party until reasonable mechanisms to that party's reasonable satisfaction have been agreed and put in place to protect that party's commercially sensitive or valuable
Intellectual Property and pricing information);

	37.2
	Subcontracting by Supplier

Supplier may not subcontract any part of a Supply Agreement (except for minor details, purchases of materials, and any Service for which the Subcontractor is named in the Supply Agreement or that is
obvious on its face) without Telecom's prior written consent. Upon termination of a Supply Agreement, Telecom may deal with any Subcontractor directly in relation to the subject matter of the Supply
Agreement. If reasonably requested by Telecom, Supplier will ensure that its Subcontractors enter into an agreement which enables Telecom to take over the benefit and obligations of Supplier under the
respective Subcontractor agreement in the event of termination of the Supply Agreement. Supplier will be responsible and liable for all acts and omissions of any Subcontractor. The entry by Supplier
into a subcontract will not:

	(a)
	create
a contractual relationship between Telecom and the Subcontractor; and 

30

 

	(b)
	relieve
Supplier from liability for the performance of any obligations under the Supply Agreement.

	38
	WARRANTIES

	

	Supplier
represents and warrants that:

	(a)
	the
performance of its obligations under the Supply Agreement will not conflict with any obligation or duty owed to any third party; and

	(b)
	all
information provided or to be provided to Telecom by Supplier under any Supplier Agreement is, at the time of disclosure and to the best of Supplier's knowledge, accurate,
complete and true.

	

	The
express warranties in this Section 14 (and any applicable Supply Agreement or SOW) are exclusive and in lieu of all other warranties, whether express, implied,
or statutory, including, without limitation, any implied warranties concerning the Deliverables or Services and warranties of merchantability, title, fitness for a particular purpose or
non-infringement, which Supplier expressly disclaims to the fullest extent permissible by law.

	39
	GENERAL

	39.1
	Notices

Any notice or other communication to be given under a Supply Agreement may be in writing and delivered by hand, registered mail or facsimile to Telecom or Supplier (as the case may be) at the
respective addresses specified below. Receipt will be deemed upon delivery by hand, 3 Working Days after posting, or upon receipt of facsimile confirmation (whichever is applicable).

	

	Telecom:

	

	Telecom
Directories Limited WELLINGTON

	

	Attention:
Company Secretary

Fax: 64 4 498 9176

	

	Copy:
Head of Infrastructure Supply

	

	Fax:
64 4 473 0637

	

	Supplier:

	

	Local
Matters, Inc.

	

	1221
Auraria Parkway

	

	Denver,
Colorado 80204

	15.2
	Severability

If any one or more of the provisions of a Supply Agreement will be invalid, void, illegal or unenforceable, the validity, existence, legality and enforceability of the remaining provisions will not in
any way be affected, prejudiced or impaired.

	15.3
	Waiver

No term or condition of a Supply Agreement will be deemed to have been waived and no delay, breach or default will be deemed to have been excused unless the waiver or excuse is in writing and signed
by an authorised representative of the relevant party.

	15.4
	Entire Agreement

Each Supply Agreement, these General Terms, and any documents appended to or referred to from it contains the entire understanding between Telecom and Supplier concerning its subject 

31

 

matter
and supersedes all previous agreements and understandings between the parties on this subject matter. 

	15.5
	Contract variations

No Supply Agreement may be modified or amended except in writing signed by a duly authorised representative of each party; no other act, document, usage, or custom will be deemed to amend or modify
the Supply Agreement.

	15.6
	No Agency etc

Nothing in a Supply Agreement will be deemed to constitute either party as the agent, partner or joint venturer of the other. Supplier, in providing the Products and Services to Telecom under each
Supply Agreement, is acting as an independent contractor.

	15.7
	Counterparts

Each Agreement may be executed in several counterparts (including facsimile copies), all of which when signed and taken together constitute a single agreement between the parties.

	15.8
	Further acts and documents

Each party will, at its own expense and when requested by the other party, promptly do, sign and deliver everything reasonably required for the purposes of and to give full effect to each Supply
Agreement, its provisions and any transactions contemplated by it.

	15.9
	Set-Off

Telecom may deduct from or set-off against any amount that is or may become payable by it to the Supplier in relation to a Supply Agreement.

	15.10
	Governing Law

Each Supply Agreement will be governed by the laws of New Zealand and the parties submit to the non-exclusive jurisdiction of the New Zealand courts. 

	EXECUTION	 	 
	
TELECOM NEW ZEALAND LIMITED

by:	
 	

 
	

 	
 	

/s/  DUDLEY ENOKA      
 Signature of authorised signatory
	

 	
 	

Dudley Enoka
 Name of authorised signatory
	Local Matters, Inc. by:	 	 
	

 	
 	

/s/  PERRY EVANS      
 Signature of authorised signatory
	

 	
 	

Perry Evans
 Name of authorised signatory

32

QuickLinks

MASTER PROFESSIONAL SERVICES AGREEMENT

LOCAL MATTERS (Supplier)

TELECOM DIRECTORIES LIMITED (Telecom)

SOW FOR [ INSERT PROJECT NAME ]

GENERAL TERMS

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