Document:

Exhibit 10.35

 

[ 
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
BY BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

INTERNET SEARCH TRAFFIC AGREEMENT

 

This INTERNET SEARCH TRAFFIC AGREEMENT (the “Agreement”) dated June 29, 2007 (the “Effective Date”), is entered
into by and between LOCAL MATTERS, INC., a
Delaware corporation, with its principal offices at 1221 Auraria Parkway, Denver,
Colorado 80204 (“LMI”) and YELLOWPAGES.COM
LLC, a Delaware limited liability company, with its principal
offices at 7 North Fair Oaks, Pasadena, California, 91103 (“YPC”) (each of LMI and YPC, a “Party”).

 

WHEREAS, LMI
owns or operates a network of websites combining key domains including
areaguides.net, city-guides.com and other neighborhood domains, and powers a
number of affiliate partner sites, such as California.com and Fox Network Metro
Guides, including (i) those identified on Exhibit A attached
hereto, (ii) those which contain “areaguide”, “areaguides”, or “myareaguide”
in the URL, (iii) those which contain sub branding or co-branding
incorporating the “areaguides” name, or (iv) affiliate websites that are
powered by LMI’s technology platform, in each of the foregoing cases, only to
the extent that the webpages on the website are controlled by LMI
(collectively, the “Area Guides Network”).

 

WHEREAS, YPC
operates a network of websites that provide Internet Yellow Page search
functions and sells advertising packages to businesses who wish to be listed in
the Yellow Page search results on YPC’s network of websites and partners.

 

WHEREAS, YPC
is interested in the potential of the Area Guides Network providing traffic in
the form of Yellow Page searches from consumers on the Area Guides
Network.

 

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

 

1.                                      SEARCH
TRAFFIC AND PROCESS DESIGN

 

1.1                               Search
Traffic.

 

(a)                                  During
the Term (as defined below), the Parties agree to work collaboratively to
enable LMI to integrate YPC’s search results for United States businesses into
its Area Guides Network portal interfaces in order to generate search traffic
for YPC. Subject to LMI’s other contractual obligations under the Third Party
Agreements (defined in Section 4.3 below), within forty-five (45) days of
the Effective Date, LMI will fully implement on all Area Guides Network
websites (i) search boxes where end users can search Yellow Pages listings
by entering their search parameters and submitting their query and the end user
is linked directly to

 

CONFIDENTIAL

 

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

1

 

a Results Page (the “Search
Box”), (ii) named links for popular predefined Yellow Pages category
search topics relevant to a particular location that link directly or
indirectly to a Results Page (as defined below), and (iii) any “Yellow
Pages,” “Business Search,” or “Find a Business” links that link directly or
indirectly to a Results Page, in each case containing YPC Search Results (the
links described in clauses (ii) and (iii), collectively, the “Search Links”). Upon completion of
such task, the Parties shall execute a document acknowledging the completion of
the implementation of Search Boxes and Search Links, and the date of execution
thereof shall be referred to herein as the “Implementation
Date”. LMI will determine the location and placement of the
Search Boxes, and LMI will choose the topics for and location and placement of
the Search Links in its reasonable discretion, implementing these positions
above the fold on the webpage wherever practical. The query results will
be served by YPC from its hosted facilities via an XML data feed and the specific
category validation and search results (the “YPC
Search Results”) will be presented to end users as co-branded page views
on a website on the Area Guides Network that displays the names, addresses, and
phone numbers and other relevant information that match the query from the
Search Box or Search Link (the “Results Page”).
End users will have the option to click on an individual link on the Results
Page, which link shall open a new browser window with the corresponding search
result on YPC’s website. The end user will be prompted by the category
validation page if a search term entered into the Search Box was too broad
to lead to specific business listings on the Results Page. The YPC category
validation pages and Results Page will comply with the co-branding
parameters set forth in Exhibit A.

 

(b)                                  LMI
and YPC acknowledge and agree that one of the goals of this Agreement is to
drive internet traffic to Results Pages so that the Search Fees approach
or exceed the Cap (as defined below). If LMI intends to implement changes to
websites in the Area Guides Network that could have a material adverse impact
on the quantity of traffic sent to Results Pages, LMI will provide YPC at least
45 days advance notice of such intended changes along with a general description
of the changes and the believed impact on traffic. YPC may provide LMI
comments, suggestions, or other advice regarding the proposed changes (“YPC  Comments”), and LMI will consider the YPC
Comments in good faith.

 

1.2                               Search
Results. All Search Links and Search Boxes located on any tabbed portion,
delineated box (see screenshots on Exhibit E), or other section of
any page  of an Area Guides Network website labeled “Yellow Pages” (“Yellow Pages Navigation Box”)
will link to YPC Search Results, subject to LMI’s obligations under the Third
Party Agreements. Any “Find a Business,” “Yellow Pages,” or “Business Search”
buttons (or similarly labeled buttons directing a user to United States
business listings) on any of the webpages on websites in the Area Guides
Network will link to YPC Search Results, subject to LMI’s obligations under the
Third Party Agreements. For avoidance of doubt, except as expressly described
in this Section 1.2, and subject to the
terms and conditions of this Agreement, including, but not limited to, the
condition that under no circumstances will websites on the Area Guides Network
link to or contain Prohibited Content or content that is provided by YPC
Competitors, LMI will have sole control over all links, tabs, search boxes,
advertisements, and other content, materials or widgets located on websites
located on the Area Guides Network, including, without limitation, the right to
link to third party content, websites, or materials.

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

2

 

1.3                               Process
Design. Prior to the launch of the Search Box or Search Links on the Area
Guides Network websites and within twenty (20) days after the Effective Date,
LMI will work with YPC to develop a mutually agreed-upon look and feel for the
Search Box, the Search Links, any “Find a Business” button, “Business Search”
button, Listing Link, and Results Page on the Area Guides Network websites
with the intent of optimizing the traffic’s value to consumers and to search
engine algorithms. All Yellow Pages Navigation Boxes and landing pages arrived
at from clicking on a “Find a Business” button, “Business Search” button or
Listing Link on any Area Guides Network webpage will contain YPC
co-branding pursuant to the terms of Exhibit A.

 

1.4                               Data
Delivery. Prior to the Effective Date, and as a condition precedent to LMI’s
obligations under this Agreement, YPC will provide LMI with documentation as to
the proper usage, data delivery, and display parameters of the YPC XML API, and
LMI agrees to adhere to the guidelines contained therein (“XML
Specs”). YPC further agrees to provide reasonable notification
and support to LMI in the event it changes the format or delivery parameters of
the XML API during the term of this Agreement.

 

1.5                               Traffic
Credit. Within thirty (30) days after the Effective Date and for the
duration of the Term, LMI shall assign traffic credit for all user traffic for
the URLs of the Results Pages and all category validation pages to
YPC for purposes of all Nielsen Net Ratings and comScore Networks syndicated
audience measurement reports (including unique visitor, Yellow Page searches,
and page view credits) and LMI shall execute any and all documentation
required by Nielsen and comScore to effect such assignment of such URLs.

 

2.                                      LICENSES

 

2.1                               Content
License. During the Term and subject to the terms and conditions of this
Agreement, YPC grants LMI a non-exclusive, royalty-free, revocable right and
license to:

 

(a)                                  display
and temporarily store YPC’s name, trademarks, trade names, service marks and
logos as are specified by YPC in writing from time to time (collectively, the “Company Marks”), solely for the
purpose of incorporating the Company Marks into and displaying the Company
Marks in the Search Box and Results Pages on the Area Guides Network
websites; and

 

(b)                                  display,
temporarily store, and modify (but solely to the extent necessary to configure,
format and adapt to the application and look and feel of the Area Guides
Network) the YPC Search Results solely for the purpose of displaying the YPC
Search Results in the Results Pages on the Area Guides Network websites.

 

(c)                                  Use
of the YPC Search Results for a purpose other than the permitted purposes
outlined in Section 2.1(b) requires YPC’s prior written consent.

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

3

 

2.2                               Limitations.

 

(a)                                  Subject
to the co-branding requirements of Section 1.1(a), LMI may not attach any
LMI trademarks, trade names, service marks or logos or Affiliate Sites’
trademarks, trade names, service marks or logos to YPC Search Results or
Results Pages. LMI may not integrate or distribute any Company Marks or YPC
Search Results (collectively, “YPC Content”)
on Affiliate Sites that primarily feature content and materials related to the
following categories:  (i) illegal
activities (e.g. illegal drugs, terrorism, or criminal activities), (ii) pornographic
or obscene materials, (iii) excessively graphic or explicit violence, or (iv) alcohol,
tobacco, or weapons-related content (collectively, a “Prohibited
Site”). In the event that LMI integrates or distributes YPC
Content to a Prohibited Site, upon notice from YPC or if LMI otherwise becomes
aware of such fact, LMI shall promptly cease further distribution of YPC
Content to such Affiliate Site.

 

(b)                                  Except
as allowed under this Agreement, LMI shall not republish, upload, post, or
otherwise use any YPC Search Results or frame the YPC Search Results within any
website other than websites in the Area Guides Network without YPC’s prior
written permission. Systematic retrieval of data or other content from the YPC
Search Results or database to create or compile, directly or indirectly, a
collection, compilation, database or directory, without prior written
permission from YPC, is prohibited.

 

2.3                               Ownership  LMI recognizes YPC’s claim of the validity
of, and will do nothing inconsistent with, or which would negatively impact,
YPC’s rights in and ownership of the Company Marks or the goodwill represented
thereby. LMI further recognizes that all use of the Company Marks by it shall
inure to the benefit of, and be on behalf of YPC. LMI has no right to register
any Company Mark or any confusingly similar mark as a corporate or trade name,
domain name, trademark or service mark in any country or territory. Further, as
between the Parties, LMI acknowledges and agrees that YPC is the owner of the
YPC Search Results and Company Marks. LMI acknowledges YPC’s claim (i) that
the YPC Search Results are compilations formed by the collection and assembly
of data that are selected, coordinated and arranged in such a way that they
constitute original works of authorship for purposes of the Copyright Act (17
U.S.C. §101, et al.), (ii) that the
inclusion of any YPC Search Results within LMI’s or the Area Guides Network’s
database involves the copying of an original work of authorship protected under
copyright, and (iii) that any database or other works of authorship which
may include the YPC Search Results or any portions thereof, shall constitute a
derivative work thereof, as such term is defined in Section 101 of the
Copyright Act.

 

2.4                               Quality.
LMI acknowledges and agrees that maintaining the goodwill associated with the
Company Marks is of substantial importance to YPC. LMI therefore agrees that
the Results Pages displaying the YPC Content and all web pages displaying
the Company Marks shall meet or exceed the standard of quality agreed hereunder
and those standards adhered to by LMI in the conduct of its own business. Upon
request, all software and printed or electronically transmitted material in
which the Company Marks are used hereunder shall be submitted in writing for review
by YPC in advance and shall not be distributed or used in any manner without
prior written approval of YPC or its authorized representative, which approval
shall not be unreasonably withheld or delayed.

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

4

 

2.5                               Use.
LMI shall display the YPC Search Results in the exact manner in which YPC sends
data to LMI. Any use of the YPC Content that is not authorized herein or in
writing by YPC is strictly prohibited and may give rise to an act of
infringement. YPC may edit or modify the YPC Content at any time in its
discretion. Further, YPC may limit LMI’s use of the YPC Content at YPC’s sole
discretion if YPC reasonably believes (i) LMI is in material breach of any
provision of this Agreement related to the use of YPC Content, (ii) LMI’s
use of YPC Content is in violation of any law, rule, or regulation, or (iii) LMI’s
use of YPC Content exposes either Party to liability for such use, provided
that in each of (i) – (iii) above YPC uses commercially reasonable
efforts to provide LMI with advance notice of any pending limitation, but in
all instances YPC shall provide LMI written notice of such limitation within
three (3) days following implementation of the limitation. In the event
that YPC limits LMI’s use of YPC Content pursuant to Section 2.5(iii) in
a manner that has a material adverse effect on LMI for more than five (5) continuous
business days, LMI may terminate this Agreement upon providing written notice
to YPC. Any use of the YPC Content in breach of any terms of this Agreement
shall be grounds for termination of this Agreement pursuant to Section 10.
LMI shall strictly comply with all graphic and trademark standards for the
Company Marks and shall place all trademark symbols on the Company Marks as
provided to LMI by YPC as part of the Company Marks.

 

2.6                               Reservation
of Rights. Except for the rights and licenses expressly granted herein, YPC
and its affiliates reserve all right, title and interest in and to the YPC
Content, and nothing contained in this Agreement shall be construed as
conferring upon LMI any right or license in the YPC Content, by implication,
estoppel or otherwise. Without limiting the generality of the foregoing, LMI is
not authorized to (i) create any derivative works of the YPC Content, or
to use or reproduce YPC Content for the purpose of extracting factual
information therefrom, (ii) copy, reproduce, sell, transfer, distribute,
license, modify, enhance, alter or otherwise use any data contained in the YPC
Content other than with respect to display on Results Pages, or (iii) use
the YPC Content to send unsolicited commercial e-mails or similar
correspondence. LMI hereby transfers, conveys, and assigns, solely,
irrevocably, perpetually and exclusively to YPC, agrees to so transfer, convey
and assign to YPC, and agrees to cause its employees, agents and contractors to
so transfer, convey and assign to YPC, all right, title and interest in and to
the YPC Content and any modifications or derivative works thereof, including,
without limitation, any rights in copyright or other intellectual property
rights, which LMI may acquire or which may otherwise vest in LMI. LMI further
agrees to execute such further grants and assignments as YPC may reasonably
request from time to time for the purpose of further evidencing, enforcing,
registering or defending its ownership of the YPC Content (“Assignments”), including, without limitation, all rights
under copyright and other intellectual property rights therein, and LMI hereby
constitutes and appoints YPC as its agent solely in the limited capacity to
execute and deliver any such Assignments or other documents that LMI may fail
or refuse to execute and deliver after having been provided such Assignments
and a reasonable time to review the Assignments, this power and agency being
coupled with an interest and being irrevocable.

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

5

 

2.7                               Infringement.

 

(a)                                  YPC
may, in its sole discretion, institute or defend infringement or other
proceedings specific to the Company Marks as it deems appropriate and shall
have the full opportunity to control the prosecution, defense or settlement
thereof to the extent any such proceedings directly pertain to the Company
Marks; provided however, that LMI shall have
the right to institute or defend, at LMI’s expense, any proceedings or actions
that implicate, relate to, or involve LMI, its affiliates, their trademarks,
websites or business. If YPC undertakes the prosecution or defense of any
litigation relating to the Company Marks, LMI will cooperate, at YPC’s expense,
by executing documents and performing acts reasonably needed to assist with the
prosecution or defense thereof. YPC will bear the expense of any prosecution or
defense of such action, including damages and attorneys’ fees; provided however, to the extent that damages, expenses or
attorneys’ fees are attributable to a breach of the terms of this Agreement by
LMI, LMI shall reimburse YPC for all such expenses, damages and attorneys’ fees
attributable to LMI’s breach. If LMI undertakes the prosecution and defense of
any litigation caused by the Company Marks but relating to LMI, its affiliates,
their trademarks, websites or business, YPC will cooperate, at LMI’s expense,
by executing documents and performing acts reasonably needed to assist with the
prosecution or defense thereof. LMI will promptly notify YPC in writing of any
known challenge to the validity, registration, ownership or use of any of the
Company Marks received by LMI.

 

(b)                                  If
in YPC’s sole judgment, any claim or suit for infringement brought by a third
party can be avoided or resolved by discontinuing use of the Company Marks, YPC
will notify LMI accordingly, and LMI will discontinue using the applicable
Company Marks upon ten (10) days’ (or such shorter period as may be
required in an injunction) prior written notice from YPC to LMI, provided that
the parties first will mutually work in good faith and with reasonable efforts
to replace the applicable Company Marks with another mark or marks of YPC (“Replacement  Marks”) for
purposes of continued provision of the YPC Search Results. In the event the
Company Marks are discontinued under this Section 2.7(b) and no
Replacement Marks are provided by YPC within thirty (30) days of the
discontinuation of the Replacement Marks, either party may terminate this
Agreement upon written notice to the other party.

 

3.                                      FEES.

 

3.1                               Search
Fees. YPC will pay to LMI an amount equal to [***] in U.S. dollars for each
Unique Successful Query (“Search Fees”).
A “Unique Successful Query” occurs when
LMI successfully provides YPC Search Results on a Results Page within the
Area Guides Network to an end user that originated from the Search Links, a
Search Box, internet search engines, banner advertisements, e-mail marketing
links, or with YPC’s prior written consent other internet marketing techniques,
in each of the foregoing cases as long as the end user does not originate from
a Prohibited Site. Unique Successful Queries include subsequent new searches by
an end user referred to YPC’s website from a link contained within a Results Page so
long as the end user performs additional searches on YPC’s website during the
same browser session (“Subsequent New Searches”).
[***] (c) searches generated by “robots,” “spiders,” “web crawlers,” or
other automated processes, devices, algorithms, or methodology, nor (d) searches
that return no business listing.

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

6

 

(a)                                  Search
Fee Cap. YPC is not obligated to pay more than [***] per month, in the
aggregate, for Unique Successful Queries (the “Cap”).
The Cap may be adjusted upwards for a subsequent Extension Period if the Cap
was exceeded in at least three (3) of the first ten (10) months of
the Initial Term or the immediately preceding Extension Period, as applicable. This
adjustment will be made to set the revised Cap equal to the product of (a) the
highest number of Unique Successful Queries in any given month during the
Initial Term or Extension Period, as applicable, and (b) the then-current
Search Fee; provided, however, that in no event will the Cap be increased by
more than 20% in any Extension Period, unless by mutual agreement. LMI may not
remove websites that it owns or controls from the Area Guides Network without
the prior written consent of YPC. Websites may be removed from the Area Guides
Network if LMI looses the right to publish a website owned or controlled by a
third party.

 

(b)                                  Right
of First Refusal. If LMI receives a bona fide written offer from a third
party, who provides data similar to the YPC Search Results of comparable
quality and geographic coverage, to pay LMI a fee for Unique Successful Queries
that is higher than the then-current Search Fee, otherwise has restrictions on
content usage, partnership flexibility, or traffic quantity limitations that
are materially more advantageous to LMI (“Third Party Offer”),
LMI must provide YPC notice of such higher Third Party Offer at least 90 days
prior to the beginning of any Extension Period (as defined in Section 10.1
below) and YPC will have forty-five (45) days from YPC’s receipt of LMI’s
notice to provide LMI written notice that YPC will match the Third Party Offer
for the next Extension Period. If YPC provides written notice that it will
match the Third Party Offer, the parties will promptly execute an addendum to
this Agreement memorializing the changes that shall only become effective at
the end of the Initial Term or then current Extension Period, as applicable.

 

3.2                               Intentionally Blank.

 

3.3                               Reporting.
LMI and YPC will use reasonable efforts to agree upon data reporting
obligations of the Parties within fifteen days of the Effective Date; provided however,  that YPC shall have no obligation to provide
the YPC Content until the Parties have agreed on the form, format, content and
timing of LMI’s reporting obligations. The parties acknowledge and agree that
YPC will provide the tracking and reporting of Unique Successful Queries as
part of this Agreement. If YPC desires that LMI perform additional tracking and
reporting of events the parties will negotiate in good faith an amendment to
this Agreement and YPC acknowledges that LMI may require additional fees for
the purpose of cost recovery associated with the design and development of such
reporting tools.

 

3.4                               Payments.
YPC will pay to LMI all undisputed Search Fees required under Section 3.1
for the month in which such fees accrued within forty-five (45) days of YPC’s
receipt of LMI’s invoice. All payments must be made in U.S. dollars. LMI may
assess a late payment fee equal to 12% per annum on any undisputed amount not
paid when due.

 

3.5                               Taxes.
The Search Fees are exclusive of all sales and use taxes, and YPC will pay all
applicable and valid sales and use taxes arising from the payment of Search
Fees to LMI 

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

7

 

under this Agreement. LMI must separately state on
each monthly invoice all such sales and use taxes.

 

3.6                               Audits.
LMI will have the right, during normal business hours and upon at least ten (10) days
prior notice, to audit YPC’s records relating to Unique Successful Queries
conducted on the YPC website in order to verify that YPC has paid to LMI the
correct amounts owed under this Agreement. The audit will be conducted at LMI’s
expense, unless the audit reveals that YPC has understated the amount of such
Unique Successful Queries by five percent (5%) or more over any 12 consecutive
month period, in which case YPC will reimburse LMI for all reasonable costs and
expenses incurred by LMI in connection with such audit, and YPC will promptly
pay to LMI any amounts shown by any such audit to be owing. If the audit
reveals that YPC has overpaid the amounts owed to LMI, LMI will promptly pay to
YPC any amounts shown by any such audit to be owing. Such audits by LMI will be
conducted no more than once in any period of twelve consecutive months. YPC
will have the right, during normal business hours and upon at least ten (10) days
notice to audit LMI’s records relating to the validity of searches or
calculating amounts owed under this Agreement, including the traffic reporting
described in Section 1.5 and Section 3.3 of this Agreement and the
fees paid by YPC under Section 3.1 of this Agreement. Such audits by YPC
will be conducted no more than twice in any period of twelve (12) consecutive
months. The audit will be conducted at YPC’s expense, unless the audit reveals
that LMI has overstated the amount of Unique Successful Queries by five percent
(5%) or more over any 12 consecutive month period, in which case LMI will
reimburse YPC for all reasonable costs and expenses incurred by YPC in
connection with any such audit, and LMI will promptly pay to YPC any amounts shown
by any such audit to be owing. If the audit reveals that YPC has underpaid the
amounts owed to LMI, YPC will promptly pay to LMI any amounts shown by any such
audit to be owing.

 

4.                                      EXCLUSIVITY;
RIGHT OF FIRST REFUSAL

 

4.1                               Exclusivity.
Except for the Third Party Agreements (as defined below), during the Term and
subject to LMI’s obligations under Third Party Agreements, LMI agrees not to
include, integrate, update or promote any Yellow Page search results,
advertising services or any similar content for United States-based businesses
on the Area Guides Network from the YPC competitors listed on Exhibit C
(the “YPC Competitors”), and LMI
agrees that YPC will be the sole provider of Yellow Pages search results
for United States based businesses, Yellow Pages co-branded advertising
services and similar Yellow Pages content directed at United States based
businesses, without regard to the level of such use. [***] Subject to LMI’s
obligations under Third Party Agreements, LMI further agrees that if YPC provides
YPC Search Results to a Search Link on the [***], YPC will be the sole provider
of Yellow Pages search data to the applicable Search Link. YPC
acknowledges that this Agreement in no manner whatsoever impacts or limits LMI’s
ability to license and service publishers with private label technologies and
professional services

 

4.2                               New
Sites. LMI may from time-to-time develop or acquire additional websites, or
expand or modify its list of Area Guides Network affiliate partner websites (“Affiliate Sites”), which may contain
Yellow Page search functionality. Subject to Section 2.2 and the
remainder of this Section 4.2, Affiliate Sites and new LMI owned or
operated websites will be deemed 

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

8

 

included in the Area Guides Network, provided that if
the Cap is exceeded in two of the three (3) months immediately following
inclusion of an Affiliate Site in the Area Guides Network, LMI may notify YPC
and the Parties will negotiate in good faith a new increased Cap. If the
Parties cannot mutually agree to a new Cap, the new Affiliate Site or LMI owned
or operated websites will not be deemed part of the Area Guides Network for the
purpose of this Agreement and LMI will not be encumbered by the exclusivity
provisions of Section 4.1 with respect solely to the new Affiliate Sites
or LMI owned or operated websites. YPC may decline inclusion of new Affiliate
Sites or LMI owned or operated websites in the Area Guides Network, and LMI
will remain encumbered by the exclusivity provisions of Section 4.1 with
respect to these new Affiliate Sites or LMI owned or operated websites if the
declined inclusion was for the purpose of protecting YPC from a material
business conflict, resulting, for example, from the Affiliate Sites being
deemed by YPC to be a Prohibited Site in its reasonable discretion.

 

4.3                               Wind
Down. The parties acknowledge and agree that: (i) as of the Effective
Date, LMI has pre-existing contracts with third-party providers of Yellow Page listings
and content identified on Exhibit D (“Third
Party Agreements”), and LMI is not in breach of any provision of
this Agreement by virtue of the Third Party Agreements, and (ii) some of
LMI’s obligations under this Agreement are contingent upon the termination or
expiration of those Third Party Agreements. The date upon which all such Third
Party Agreements have either expired or been terminated shall be referred to in
this Agreement as the “Wind Down Date.”  LMI will use commercially reasonable efforts
to promptly wind-down any Third Party Agreement, and LMI will not renew or
extend any Third Party Agreement. LMI represents and warrants that each Third
Party Agreement will have expired or been terminated by the date set forth on Exhibit D,
and that LMI will take all commercially reasonable actions necessary to cause
the Third Party Agreements to expire on or before such dates.

 

5.                                      REPRESENTATIONS
AND WARRANTIES

 

Each Party represents and warrants (i) that such
Party is duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation; (ii) that such Party has the legal
right and authority to enter into and perform its obligations under this
Agreement; (iii) that the execution and performance of this Agreement will
not conflict with or violate any provision of any law or any Third Party
Agreements having applicability to such Party; and (iv) that this
Agreement, when executed and delivered, will constitute a valid and binding
obligation of such Party and will be enforceable against such Party in
accordance with its terms.

 

6.                                      INDEMNIFICATION

 

6.1                               YPC
Indemnification Obligations. YPC will indemnify, defend, and hold harmless
LMI and its affiliates and their respective officers and directors from and
against any losses, liabilities, damages, costs and expenses, including
reasonable attorneys’ fees (cumulatively “Loss”),
arising from (i) any breach of YPC’s representations or warranties under
this Agreement, (ii) any third party claim or suit of infringement of any
third party’s trademarks or service marks by the Company Marks, and (iii) any
third party claim or suit alleging that the YPC Search Results infringe upon
any copyright, trademark or any other intellectual property right of others or
misappropriate a third party’s trade secret to the extent YPC has actual 

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

9

 

knowledge of such infringement or misappropriation; provided however, that YPC shall have no obligation or
liability with respect to any Loss arising from any use of the YPC Content by
LMI in breach of the terms of this Agreement.

 

6.2                               LMI
Indemnification Obligations. LMI will indemnify, defend, and hold harmless
YPC and its affiliates and their respective officers and directors from any
Loss arising from (i) any breach of LMI’s representations and warranties
under this Agreement, (ii) any third party claim or suit alleging that LMI’s
use of the YPC Content that is a breach of the terms of this Agreement,
infringes upon any rights in copyright, patent, trademark, trade secret or any
other intellectual property right of others, is obscene, defamatory, libelous
or slanderous, or violates any right of privacy, publicity or personality of
others, and (iii) any third party claim or suit alleging that any LMI
trademark or service mark infringes upon any trademark or any other
intellectual property right of others.

 

6.3                               Indemnification
Procedures. A party seeking indemnification (“Indemnitee”)
will promptly notify the other party (“Indemnitor”)
upon receiving notice of a claim for which Indemnitee seeks or may be entitled
to indemnification; provided however,
that Indemnitor’s obligations under this Section 6.3 shall not be excused
by any failure by Indemnitee to provide such prompt notice, except to the
extent that Indemnitor is actually prejudiced by such delay. Indemnitor shall,
at its own expense, conduct such defense on Indemnitee’s behalf, subject to
Indemnitee’s right (i) to approve the selection of defense counsel by
Indemnitor, such approval not to be withheld unreasonably, and (ii) to
participate in such defense by counsel of Indemnitee’s own choosing and at
Indemnitee’s own expense; and further provided
that Indemnitor shall not settle any claim against Indemnitee unless (x) Indemnitee
approves such settlement in advance, (y) such settlement completely and
forever releases Indemnitee from any and all claims of the complaining third
party, which claims arise from the same transaction or occurrence giving rise
to the original claims for which indemnification is sought, or (z) the
settlement involves only the payment of money.

 

7.                                      LIMITATION
OF LIABILITY

 

EXCEPT FOR THE INDEMNIFICATION OBLIGATIONS UNDER SECTION 6,
CONFIDENTIALITY OBLIGATIONS UNDER SECTION 8 AND DAMAGES SOUGHT AS THE
RESULT OF FRAUD OR INTENTIONAL MISREPRESENTATION IN NO EVENT SHALL EITHER PARTY
BE LIABLE TO THE OTHER FOR ANY INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL OR
PUNITIVE DAMAGES, REGARDLESS OF WHETHER SUCH LIABILITY ARISES IN CONTRACT, TORT
OR ANY OTHER THEORY OF LIABILITY (INCLUDING NEGLIGENCE AND STRICT LIABILITY),
EVEN IF THE PARTY FROM WHICH SUCH DAMAGES ARE SOUGHT HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION UPON DAMAGES AND CLAIMS IS
INTENDED TO APPLY WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THIS AGREEMENT
HAVE BEEN BREACHED OR HAVE PROVEN INEFFECTIVE. EXCEPT FOR THE INDEMNIFICATION
OBLIGATIONS UNDER SECTION 6, CONFIDENTIALITY OBLIGATIONS UNDER SECTION 8
AND DAMAGES SOUGHT AS THE RESULT OF FRAUD OR INTENTIONAL MISREPRESENTATION, IN
NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR DIRECT 

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

10

 

DAMAGES IN EXCESS OF THE ACTUAL AMOUNTS PAID TO LMI
UNDER THIS AGREEMENT DURING THE INITIAL TERM OR THE THEN CURRENT EXTENSION
PERIOD, AS APPLICABLE, PRIOR TO THE ACT OR OMISSION GIVING RISE TO THE RELEVANT
CLAIM.

 

8.                                      CONFIDENTIALITY
OBLIGATIONS

 

8.1                               Ownership
of Confidential Information. The Parties acknowledge that during the
performance of this Agreement, each Party will have access to certain of the
other Party’s Confidential Information or Confidential Information of third
parties that the disclosing Party is required to maintain as confidential. Both
Parties agree that all items of Confidential Information are proprietary to the
disclosing Party or such third party, as applicable, and shall remain the sole
property of the disclosing Party or such third party. “Confidential
Information” shall mean all technical, business, and other
information of a party hereto, whether obtained prior to, on, or after the date
of this Agreement, that derives economic value, actual or potential, from not
being generally known to others, including, without limitation, any technical
or non-technical data, designs, methods, techniques, drawings, processes,
products, inventions, improvements, methods or plans of operation, research and
development, business plans and financial information of such party. The YPC
Content in aggregated form shall constitute Confidential Information. The terms
and conditions of this Agreement shall also constitute Confidential Information
of each Party. The Parties agree that upon the conclusion of the Term of this
Agreement, LMI will use industry standard methods to erase and delete from all
databases used to store or retrieve such information all Confidential
Information, including information pertaining to third parties collected and
stored for the purpose of facilitating the use of the Starter Guides.

 

8.2                               Mutual
Confidentiality Obligations. The Party receiving the Confidential
Information (the “Receiving Party”) from the
other Party (the “Disclosing Party”) under this
Agreement will: (i) use the Confidential Information only to perform its
obligations under this Agreement; (ii) not reproduce the Disclosing Party’s
Confidential Information and will hold in confidence and protect the Disclosing
Party’s Confidential Information from dissemination to, and use by, any third party;
(iii) except as otherwise expressly permitted hereunder, will not create
any derivative work from the Disclosing Party’s Confidential Information; (iv) restrict
access to the Disclosing Party’s Confidential Information to such of its
personnel, agents, and/or consultants, if any, who have a need to have access
and who have been advised of and have agreed in writing to treat such
information in accordance with the terms of this Agreement; and (v) return
or destroy, pursuant to Section 10.3, all Confidential Information of the
Disclosing Party in its possession upon termination or expiration of this
Agreement. The Receiving Party will protect the Disclosing Party’s Confidential
Information from unauthorized use, access, or disclosure in the same manner as
the Receiving Party protects its own confidential or proprietary information of
a similar nature and with no less than reasonable care.

 

8.3                               Confidentiality
Exceptions. Notwithstanding the foregoing, the provisions of Sections 8.1
and 8.2 shall not apply to Confidential Information that (i) is or becomes
generally available to the public other than as a result of a disclosure by the
Receiving Party in violation of the Agreement; (ii) was available to the
Receiving Party on a non-confidential basis prior to its 

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

11

 

disclosure by the Disclosing Party; (iii) becomes
available to the Receiving Party on a non-confidential basis from a third party
other than a Disclosing Party who is not otherwise bound by a confidentiality
agreement with the Disclosing Party, or is otherwise not under an obligation to
the Disclosing Party not to transmit the information to the Receiving Party; (iv) is
already in the Receiving Party’s possession free of any confidentiality
obligations with respect thereto at the time of disclosure; or (v) was
independently developed by the Receiving Party without reference to or use of
Confidential Information. Each Party may disclose Confidential Information (1) in
response to an order of a court or other governmental body; provided however, that the Party making the disclosure
pursuant to the order shall first have given notice to the other Party and made
a reasonable effort to obtain a protective order; (2) as required by law
or regulation to be disclosed; or (3) in order to establish a Party’s
rights under this Agreement, including to make such court filings as may be
required; provided however, that in each case, the
Party required to disclose minimizes such disclosure to the extent legally
permissible.

 

9.                                      NON-SOLICITATION

 

During the Term, LMI will not, (i) either
directly or indirectly solicit YPC’s advertisers, or (ii) contact
businesses to sell Internet Yellow Pages advertising or search engine
marketing products. Notwithstanding the foregoing, LMI or its agents, may contact
businesses in the normal course of its business for the purpose of selling
advertising on portions of the Area Guides Network that are not subject to this
Agreement, but LMI may not use, directly or indirectly, any YPC Competitors, to
assist in this process. During the Term and for the six (6) month period
thereafter, LMI will not use the YPC Content, including the list of YPC’s
advertisers, as a leads list for the purpose of contacting potential new
customers or business for existing links, which have a specific provider of
search result content that is not YPC, and banners on the Area Guides Network.

 

10.                               TERM; TERMINATION

 

10.1                        Term. This
Agreement shall commence on the Effective Date and shall end on the date that
is [***] following the latter of the Implementation Date or the Wind Down Date
(the “Initial Term”),
unless terminated earlier in accordance with this Section 10. After the
Initial Term, the Agreement will be automatically extended for successive one
year periods (“Extension Periods”) unless
otherwise terminated by either Party by giving notice to the other Party not
less than forty-five (45) days prior to the end of the then applicable Initial
Term or Extension Period. The Initial Term and any Extension Periods will
collectively be known as the “Term.”

 

10.2                        Termination
for Cause.

 

(a)                                  Either
Party may, at its option, terminate this Agreement in the event of a material
breach by the other Party. Such termination may be effected only through a
written notice to the breaching Party, specifically identifying the breach or
breaches on which such notice of termination is based. The breaching Party will
have a right to cure such breach or breaches within thirty (30) days of receipt
of such notice, and this Agreement shall terminate immediately if cure is not
made within such thirty (30)-day period.

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

12

 

(b)                                  YPC
may, at its sole option, terminate this Agreement upon thirty (30) days’ prior
written notice if, for two (2) consecutive months during an Extension
Period, the number of Unique Successful Queries during each month drops more
than [***] compared to the same month a year earlier.

 

10.3                        Effect of
Termination. Upon termination of this Agreement for any reason, all
licenses granted hereunder by YPC shall immediately cease and LMI shall
promptly (but in no event later than five (5) business days following
termination of this Agreement) remove any YPC Content from all web pages within
the Area Guides Network in a manner that provides for an orderly transition and
shall return to YPC or destroy upon YPC’s request all copies of any of the YPC
Content.

 

11.                               MISCELLANEOUS

 

11.1                        Entire
Agreement. This Agreement sets forth the entire agreement and understanding
between the Parties with respect to the subject matter of the Agreement and,
except as specifically provided in this Agreement, supersedes and merges all
prior or contemporaneous oral and written agreements, discussions and
understandings between the Parties with respect to the subject matter of this
Agreement, and neither of the Parties shall be bound by any conditions,
inducements or representations other than as expressly provided for in this
Agreement.

 

11.2                        Notices.
All notices required by or relating to this Agreement shall be in writing and
shall be sent by means of certified mail, postage prepaid, to the Parties to
the Agreement at their respective addresses as set forth in the preamble
hereto, or addressed to such other address as either Party may have given by
written notice in accordance with this provision. All notices required by or
relating to this Agreement may also be communicated by facsimile; provided however, that the sender receives and retains
confirmation of successful transmittal to the recipient. Such notices shall be
effective on the date indicated in such confirmation. In the event that either
Party delivers any notice hereunder by means of facsimile transmission in
accordance with the preceding sentence, such Party will promptly thereafter
send a duplicate of such notice in writing by means of certified mail, postage
prepaid, to the receiving Party, addressed as set forth above or to such other
address as the receiving Party may have previously substituted by written
notice to the sender.

 

11.3                        Force Majeure. Neither party shall
be liable for failure to perform hereunder due to acts of war, public enemy,
government, or any person engaged in subversive activity, riot or sabotage; due
to Acts of God, including but not limited to fire, flood, storm, accident,
explosion or other catastrophe, casualties, epidemic or quarantine
restrictions, or any other cause beyond its reasonable control whether similar
or dissimilar to any cause listed herein. In the event of such delay, the
affected party shall promptly notify the other, and the parties shall consult
for the purpose of taking whatever remedial action is mutually deemed
appropriate.

 

11.4                        No Third
Party Beneficiaries. Nothing in this Agreement, whether express or implied,
will confer upon any person or entity, other than the Parties, their successors
and permitted assigns, any legal or equitable right whatsoever to enforce any
provision of this Agreement.

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

13

 

11.5                        Independent
Contractors. The parties to this Agreement are independent contractors. Except
as otherwise expressly provided herein, nothing herein creates any joint
venture, partnership, agency, employment, fiduciary or other relationship
between the parties, and neither party is authorized to make contracts or
commitments in the name of or on behalf of the other without the other party’s
prior written approval.

 

11.6                        Amendments;
Modifications. This Agreement may not be amended or modified except in a
writing duly executed by both Parties.

 

11.7                        Assignment;
Delegation. Neither Party may assign any of its rights hereunder, nor
delegate any of its duties hereunder, without the prior written consent of the
other Party, except that either Party shall be entitled to transfer its
interests to a third party with which such Party is merged or which acquires
all or substantially all of the assets or capital stock of such Party, and YPC
may assign this Agreement to one of its Affiliates. Notwithstanding the
foregoing, LMI shall not assign, transfer, or delegate any of its rights and
interests hereunder to any YPC Competitors. LMI will use best efforts to
provide YPC written notice at least thirty (30) days prior to any Change of
Control of LMI, but in all instances LMI shall provide YPC written notice of a
Change of Control of LMI within three (3) days following the Change of
Control, and YPC shall have the right to terminate this Agreement upon
receiving written notice of a Change of Control in which a YPC Competitor
acquires Control of LMI. “Change of Control”
shall mean the consummation of a transaction in which any entity becomes the
beneficial owner, directly or indirectly, of securities of LMI representing
fifty percent (50%) or more of the combined voting power of LMI’s then
outstanding securities, or a transaction in which the stockholders of LMI
approve:  (i) a plan of complete
liquidation of LMI, or (ii) an agreement for the sale or disposition of
all or substantially all of LMI’s assets, other than to an affiliate; or (iii) a
merger, consolidation, or reorganization of LMI with or involving any other
entity (other than an affiliate) other than a merger, consolidation, or
reorganization that would result in the voting securities of LMI outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity),
at least fifty percent (50%) of the combined voting power of the voting
securities of LMI (or such surviving entity) outstanding immediately after such
merger, consolidation, or reorganization. “Control”
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of an entity, whether through
the ownership of voting securities, by contract, or otherwise.

 

11.8                        Severability.
If any provision of this Agreement is invalid or unenforceable for any reason
in any jurisdiction, such provision shall be construed to have been adjusted to
the minimum extent necessary to cure such invalidity or unenforceability. The
invalidity or unenforceability of one or more of the provisions contained in
this Agreement shall not have the effect of rendering any such provision
invalid or unenforceable in any other case, circumstance or jurisdiction, or of
rendering any other provisions of this Agreement invalid or unenforceable
whatsoever.

 

11.9                        Waiver. No
waiver under this Agreement shall be valid or binding unless set forth in
writing and duly executed by the Party against whom enforcement of such waiver
is sought. Any such waiver shall constitute a waiver only with respect to the
specific matter 

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

14

 

described therein and shall in no way impair the
rights of the Party granting such waiver in any other respect or at any other
time. Any delay or forbearance by either Party in exercising any right
hereunder shall not be deemed a waiver of that right.

 

11.10                 Governing Law;
Venue. This Agreement shall be governed by and interpreted in accordance
with the laws of the State of New York, without regard to its principles
regarding conflicts of law, and without regard to the United Nations Convention
on the International Sale of Goods.

 

11.11                 Remedies
Cumulative. Unless otherwise provided herein, all rights and remedies
granted to each Party at law, in equity, or under this Agreement are cumulative
and in addition to and not in lieu of any other rights or remedies, otherwise
available to such Party.

 

11.12                 Counterparts.
This Agreement may be executed in any number of counterparts, each of which
when so executed shall be deemed to be an original and all of which when taken
together shall constitute one Agreement.

 

11.13                 Headings. The
headings in this Agreement are inserted merely for the purpose of convenience
and shall not affect the meaning or interpretation of this Agreement.

 

11.14                 Survival. The
provisions of Sections 2.2, 5, 6, 7, 8, 10.3 and 11 shall survive the
termination or expiration of this Agreement.

 

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the Effective Date, as set forth
above.

 

	
   

  	
  LOCAL MATTERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Curtis Fletcher

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Curtis
  Fletcher

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
    SVP -
  Finance

  
	
   

  	
   

  	
   

  
	
   

  	
  YELLOWPAGES.COM
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles Stubbs

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Charles Stubbs

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President and CEO

  

 

 

Confidential

[  ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

15

 

EXECUTION COPY

 

EXHIBIT A

 

YPC Co-Branding Parameters

 

A.                                   The
Yellow Pages category validation and Results Page shall satisfy the
following requirements:

 

1.               Prominent
YPC branding and location above the fold;

 

2.               Display
of at least twenty-five (25) YPC listings (if available) per page in the
primary search results pages, with at least three (3) YPC listings above
the fold;

 

3.               YPC
advertiser listings must appear above all other listings and their display must
mimic YPC prioritization; provided however,
that the Parties may mutually agree to exceptions (e.g. for “Find Nearby”
searches, map display, compare pages);

 

4.               Display
must use YPC category and market scoping; provided however, that LMI may (a) enable
the “Find Nearby” search option or (b) enable the ability to select a set
of businesses for comparison or (c) save a business listing to a “My
Places” list, in all cases only with prior written design approval from YPC;

 

5.               Links
on YPC-provided listings link to YPC or webpages designated by YPC;

 

6.               Maximum
of three (3) paid advertisements from Overture, Google or other companies
not listed as YPC Competitors  on Exhibit C
(“Sponsored Listings”) permitted on
the top or side of the returned listings and in a side panel display within the
Starter Guides; provided however, that Sponsored
Listings may not include advertisements of YPC Competitor products or
advertisements provided by YPC Competitors; and

 

7.               YPC
permitted to display ads below Sponsored Listings or to the right of Sponsored
Listings (“Tile Ads”). LPI and YPC will
work to choose a mutually agreed upon placement for Tile Ads.

 

Local Matters will be
allowed to display a banner ad across of the top of the Results Page as
long as the advertiser is not a YPC Competitor.

 

B.                                     Partial
List of Area Guides Network

 

Arizona.com

CitiesUnlimited.com

Local Fox
News Affiliate Websites

Texas.com

UsaCityLink.com

ALABAMA.COM

Aloha.com

 

CONFIDENTIAL

 

16

 

California.com

CoeurDAlene.com

Georgia.com

Idaho.com

Indiana.com

Kissimmee.com

Louisiana.com

Mississippi.com

missouri.com

Nebraska.com

Newjersey.com

Newportnews.com

northcarolina.com

pennsylvania.com

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
1933, AS AMENDED.

 

17

 

EXHIBIT B

 

[Intentionally Blank]

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS
AMENDED.

 

18

 

EXHIBIT C

 

YPC Competitors

 

[***]

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
1933, AS AMENDED.

 

19

 

EXHIBIT D

 

Third Party Agreements

 

	
  Agreement

  	
   

  	
  Termination/Expiration Date

  
	
  Co-Branded Yellow
  Pages and White Pages Directory Services Agreement with Verizon
  (Superpages)

  	
   

  	
  [***]

  
	
  Intelius Content Distribution Agreement

  	
   

  	
  [***]

  
	
  RHD

  	
   

  	
  [***]

  
	
  ServiceMagic Content License Agreement

  	
   

  	
  [***]

  
	
  LendingTree Marketing Agreement

  	
   

  	
  [***]

  

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
1933, AS AMENDED.

 

20

 

EXHIBIT E

 

Screenshots

 

The
below Screenshot shows an example of a Yellow Pages Navigation Box.

 

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
1933, AS AMENDED.

 

21

 

The
below Screenshot shows a example of a Results Page.

 

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
1933, AS AMENDED.

 

22

 

The
below screen shot shows an example of a search box that would NOT be considered
a Yellow Pages Navigation Box. Some but not all of the search results from
this search box would go to YPC Results.. The Yellow Pages link would go
to YPC results.

 

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
1933, AS AMENDED.

 

23

 

The
Screenshot below shows an example of a Starter Guide. It shows an example of a
Category Sections and Listing Links.

 

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
1933, AS AMENDED.

 

24

 

The
Screenshot bellows shows an example of a Find Nearby search box that may or may
not return YPC results. The results cannot be provided by a YPC Competitor. It
also shows another Results Page.

 

 

Confidential

[  ] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
1933, AS AMENDED.

 

25QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.36  

 
  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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