Document:

Exhibit 10.33

 

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

 

SERVICES AGREEMENT

Commercial Terms

 

	
  1.

  	
   

  	
  Consultant

  	
   

  	
  Aptas,
  Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1899
  Wynkoop, Suite 600

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Denver,
  CO 80202

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Services

  	
   

  	
  The
  Consultant will provide the Services and Deliverables as outlined in Schedule
  1.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Timetable

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commencement
  Date (Pilot Project)

  	
   

  	
  3 October 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Completion
  Date (Pilot Project)

  	
   

  	
  18 November 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commencement
  Date (Initial Cycle)

  	
   

  	
  19 November 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Completion
  Date (Initial Cycle)

  	
   

  	
  (i) Metro – 21 November 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii) Regional – 23 June 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commencement
  Date (Ongoing Phase)

  	
   

  	
  To be advised by Sensis

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Completion
  Date (Ongoing Phase)

  	
   

  	
  To be agreed between the parties

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Project
  Plan

  	
   

  	
  As
  described in Schedule 1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Fees and Payment Plan

  	
   

  	
  As
  described in paragraph 1 of Schedule 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Special Conditions

  	
   

  	
  Deliverables
  will be subject to acceptance testing by Sensis as described in Schedule 3.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Notices

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sensis Pty Ltd

  	
   

  	
  Address:

  	
   

  	
  181-189
  Victoria Pde

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Collingwood

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Victoria
  3066, Australia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Fax:

  	
   

  	
  (613)
  9201 4914

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Phone:

  	
   

  	
  011
  613-9201-47   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Attn:

  	
   

  	
  Amanda
  Whelan

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Consultant

  	
   

  	
  Address:

  	
   

  	
  1899
  Wynkoop, Suite 600

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Denver,
  CO 80202

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Fax:

  	
   

  	
  303.308.3219

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Attn:

  	
   

  	
  Curtis
  Fletcher

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Work

  	
   

  	
  Any
  Deliverables specified in Schedule 1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Acceptance Criteria

  	
   

  	
  As
  described in paragraph 1 of Schedule 3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Insurance

  	
   

  	
  Yes

  

 

 

By signing this agreement,
the Consultant agrees to be bound by the terms and conditions overleaf which
are hereby incorporated into this Agreement.

 

EXECUTED as an agreement on                                                                                                                                                                                                                                   2003

 

	
  SIGNED by

  	
   

  	
  )

  	
   

  	
   

  
	
  for
  and on behalf of SENSIS PTY LTD (as

  	
   

  	
  )

  	
   

  	
   

  
	
  agent for TELSTRA CORPORATION

  	
   

  	
  )

  	
   

  	
   

  
	
  LIMITED) in the presence of:

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   /s/
  Amanda Whelan

  	
   

  	
   

  	
  )

  	
   

  	
   /s/
  T. Arthur

  	
   

  
	
  (Signature
  of witness)

  	
   

  	
  )

  	
   

  	
  Signature
  of authorised person

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   Amanda
  Whelan

  	
   

  	
   

  	
  )

  	
   

  	
   General
  Manager - Product

  	
   

  
	
  (Name
  of witness)

  	
   

  	
  )

  	
   

  	
  Office
  held

  
	
   

  	
   

  	
  )

  	
   

  	
   T.
  ARTHUR

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
  Name
  of authorised person (block letters)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
   

  	
  )

  	
   

  	
   

  
	
  for
  and on behalf of APTAS, INC.

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   in
  the presence of:

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   /s/
  Curtis Fletcher

  	
   

  	
   

  	
  )

  	
   

  	
   /s/
  Perry Evan

  	
   

  
	
  (Signature
  of witness)

  	
   

  	
  )

  	
   

  	
  Signature
  of authorised person

  
	
   

  	
   

  	
  )

  	
   

  	
   CEO

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
  Office
  held

  
	
  Curtis
  Fletcher

  	
   

  	
   

  	
  )

  	
   

  	
  PERRY
  EVANS

  	
   

  
	
  (Name
  of witness)

  	
   

  	
  )

  	
   

  	
  Name
  of authorised person (block letters)

  

 

2

 

TERMS & CONDITIONS

 

1                            Scope

 

Services during the Pilot Project

 

1.1                    The Consultant shall provide to Sensis the
Services during the Pilot Project in accordance with the terms and conditions
of this Agreement (including the Special Conditions).

 

1.2                    The parties agree that any work performed by
the parties relating to the Services prior to the Commencement Date is deemed
to have been done under and subject to the terms and conditions of this
Agreement.

 

Additional Services (during the Initial
Cycle and the Ongoing Phase)

 

1.3                    If requested to do so by Sensis, the
Consultant shall also provide to Sensis the Additional Services during the
Initial Cycle, the Ongoing Phase, or both in accordance with the terms and
conditions of this Agreement (including paragraphs 1.1(b) and (c) of Schedule
1).

 

1.4                    The Consultant agrees and acknowledges that
neither this Agreement nor successful completion of the Pilot Project obliges
Sensis to acquire further services (including any Additional Services) from the
Consultant following completion of the Pilot Project or termination or expiry
of this Agreement.

 

Exclusivity obligations

 

1.5                    The Consultant agrees that it will not
provide the Services (or any similar services) to any other person in
Australia:

 

(a)                    until completion of the Pilot Project;

 

(b)                   if Sensis requires the Consultant to provide
any Additional Services during the Initial Cycle, until the completion of the
Initial Cycle;

 

(c)                    if Sensis requires the Consultant to provide
additional Services during the Ongoing Phase, until the completion of the
Ongoing Phase, provided that the Consultant is paid the fees as specified in
Item 3 in Schedule 2 of this Agreement to process on an annual basis not less
than 25% of the current volume of the Metro Display Advertisements, the Metro
In-Column Advertisements, the Regional In-Column Advertisements and the Brand
Packages

 

1.6                    Clause 1.5 does not prevent the Consultant
from providing the Services (or any services) to international organisations
which also have a presence in Australia, provided that those Services are not
provided directly to the Australian arm of the international organisation.

 

1.7                    The exclusivity obligations in clause 1.5 and
1.10 will terminate on expiry or termination for any reason of this Agreement.

 

1.8                   
If the parties agree to
extend the term of this Agreement, clauses 1.5 and 1.10 will continue to apply
during the extension period unless otherwise agreed in writing by the parties.

 

1.9                    Upon request by Sensis and subject to clause
1.10, the Consultant agrees to enter into good faith negotiations with Sensis
with a view to providing the Services (or similar services) to Sensis’
businesses outside Australia on terms substantially similar to the terms of
this agreement (including terms relating to pricing), except that any
exclusivity terms will be agreed between the parties on a case by case basis.

 

1.10              Subject to clause 1.12, the Consultant will
not enter into a business agreement providing similar Services to any third
party in Europe or Asia during the term of this Agreement that would prohibit
the Consultant from providing the Services to Sensis unless:

 

(a)                    the Consultant has offered in writing to
supply those services to Sensis on terms no less favourable than offered to or
by the third party, which offer must provide Sensis with reasonable details of
those terms, including Consultant’s revenue opportunity over the full term of
the agreement; and

 

 

(b)                   Sensis declines the offer in writing or,
following good faith negotiations, the parties cannot agree on terms within 15
Working Days’ from the date on which Sensis receives the written offer from
Consultant specified in paragraph (a) above. As part of the good faith
negotiations, the parties shall balance the Consultant’s revenue opportunity
over the full term of the agreement with the revenue opportunities from the
Sensis arm in that territory.

 

Sensis will be deemed to
have declined the offer if Sensis does not request negotiations within 5
Working Days’ of receiving the Consultant’s written offer specified in
paragraph (a) above.

 

1.1                    Clause 1.10 will apply to the supply of
services to third parties in all regions and countries in Europe and Asia, even
if Sensis has previously declined an offer, or failed to reach agreement with
the Consultant, in respect of the supply of services in another region or
country.

 

1.12              Clause 1.10 will only apply during the
Ongoing Phase if the Consultant is engaged to process during the Ongoing Phase
not less than number of advertisements specified in clause 1.5(c).

 

2                            General Obligations

 

2.1                    The Consultant must ensure that:

 

(a)                    the Services are provided with due care and
skill, in a timely and professional manner, by suitably qualified and
experienced personnel, and so as to meet any timing requirements set out in
paragraph 2 of Schedule 1;

 

(b)                   any materials provided to Sensis under this
Agreement (including the Deliverables) will conform to the specifications set
out in this Agreement; and

 

(c)                    the Deliverables are delivered to Sensis so
as to meet the acceptance criteria set out in paragraph 1 of Schedule 3.

 

2.2                    Unless otherwise agreed by Sensis in writing,
the Consultant must provide and is responsible for all equipment necessary for
it to provide the Services.

 

2.3                    The Consultant must comply with all workers’
compensation, Work Care or similar legislation in each jurisdiction in which
the Consultant and/or its Personnel actually provide the Services and pay all
amounts required by that legislation in respect of the Consultant and its
Personnel.

 

2.4                    In performing this Agreement, the Consultant
must comply with (and must ensure that all personnel involved in the provision
of the Services (“Personnel”)
comply with):

 

(a)                    all laws, industry codes and standards in
each jurisdiction in which the Consultant and/or its Personnel actually provide
the Services and which are applicable to the provision of the Services;

 

(b)                   any commercially reasonable directions and
instructions which may be given to the Consultant or any Personnel by Sensis;
and

 

(c)                    any reasonable written requests, which may be
given to the Consultant or any Personnel by Sensis concerning the following:

 

(i)                        systems and technical requirements;

 

(ii)                     occupational health & safety
requirements;

 

(iii)                  environmental requirements; and

 

(iv)                 corporate policies or standards.

 

2.5                    The Consultant must comply with the
acceptance testing procedures as set out in paragraph 2 of Schedule 3.

 

2.6                    The Consultant must comply with the personnel
requirements set out at paragraph 1.4 of Schedule 1.

 

 

2.7                    Upon engagement of the Consultant to perform
the Services during the Initial Cycle, the Consultant must, upon written
request by Sensis, enter into an escrow agreement for the source code for the
DKB and any other software used by the Consultant to provide the Services,
which escrow agreement will:

 

(a)                    require the Consultant to deposit that source
code with an escrow agent in Australia mutually agreed by the parties; and

 

(b)                   allow Sensis and its contractors to obtain
access to and to use and modify the source code so that Sensis or its
contractors can continue to provide the Services to Sensis if, at any time
prior to the execution of a formal licence agreement between the parties for the
DKB source code and the delivery of that source code:

 

(i)                        the Consultant is or becomes Insolvent; or

 

(ii)                     is unable or unwilling to provide Services as
defined herein.

 

Source code access is
provided solely for the purpose of allowing Sensis or its contractors to
complete the provision of the Services to Sensis in accordance with this
Agreement. No other rights are granted or authorized.

 

2.8                    Sensis will pay the costs of the escrow agent
contemplated at clause 2.7(a) above.

 

3                            Intellectual Property

 

3.1                    Sensis grants the Consultant a non-exclusive,
royalty-free, non-transferable licence for the term of this Agreement to use
the Sensis Content to the extent necessary to enable the Consultant to perform
the Services and any Additional Services as defined in this Agreement.

 

3.2                   
The Consultant grants to
Sensis a non-exclusive, perpetual, irrevocable, royalty free licence to use,
reproduce and modify the Deliverables, the Background IP and the Project IP but
only to the extent necessary to enable Sensis to use the Deliverables in
connection with its Yellow Pages® and other directory products.

 

3.3                   
The Consultant must not:

 

(a)                    use the ontology developed for Sensis under
this Agreement (“Sensis Ontology”)
in the course of providing services to any third party; or

 

(b)                   license the Sensis Ontology to any third
party,

 

without the prior written
consent of Sensis.

 

3.4                    The Consultant warrants that the Services and
use of the Background IP, Project IP or Deliverables by Sensis or any person
authorised by Sensis will not infringe the Intellectual Property rights
(including moral rights) of any person or infringe any other rights or laws and
the Consultant fully indemnifies Sensis, Telstra and their representatives
against any Loss incurred by any of them in connection with a claim of such
infringement by a third party or breach of this clause by the Consultant (“Third Party Claim”).

 

3.5                    If a Third Party Claim is made or there is a
breach of the warranty in clause 3.4 the Consultant will, without limiting any
of Sensis’ other rights or remedies, within 15 Working Days of receiving
written notice of a Third Party Claim, at its cost obtain any necessary
licences, or make such modifications or perform such services, as are required
to ensure that Sensis has a continued right to use Deliverables without
infringing the Intellectual Property rights of any third party.

 

4                            Fees and Payment

 

4.1                    The fees payable by Sensis to the Consultant
are set out in Schedule 2.

 

4.2                    The Consultant shall invoice Sensis for
amounts payable by Sensis under this

 

 

Agreement at the times and
in the manner set out in Schedule 2.

 

4.3                    Sensis shall pay the Consultant the amount of
any invoice which is valid and correctly rendered within 30 Working Days of
receipt, unless Sensis disputes the amount of the invoice in which case Sensis
will pay the undisputed amount and dispute the balance in accordance with
clause 12. Sensis may deduct from such amounts any moneys due to Sensis from
the Consultant, whether under this agreement or otherwise.

 

4.4                    Subject to clause 4.5,  where GST is imposed on any supply made
under this Agreement by one party (“the
supplying party”) to another party (“the receiving party”), the
receiving party must pay or provide the GST Exclusive Consideration for the
Supply and, in addition to and at the same time as the GST Exclusive
Consideration is payable or to be provided for the supply, an additional amount
calculated by multiplying the value of that GST Exclusive Consideration
(without deduction or set-off) by the prevailing GST rate. This clause 4.4 does
not apply to a supply for which a GST inclusive consideration has been agreed
unless the supply is made after a change to the GST rate is effected and the
agreed GST inclusive consideration has not had the GST rate change taken into
account, in which case the consideration payable for the supply shall be
calculated pursuant to this clause 4.4.

 

4.5                    The receiving party is not required to pay
any amount of GST to the supplying party unless the supplying party has made
demand for payment by means of a Tax Invoice.

 

4.6                    If the amount of GST recovered by the
supplying party from the receiving party differs from the amount of GST payable
at law by the supplying party in respect of the supply, the amount payable by
the receiving party to the supplying party will be adjusted accordingly.

 

4.7                    Where the receiving party is liable to
reimburse the supplying party for any expenditure incurred by the supplying
party (“Expenditure”), the amount
reimbursed by the receiving party shall be the
GST exclusive Expenditure plus any GST payable by the receiving
party pursuant to clause 4.4.

 

4.8                    Sensis may deduct from the fees payable by it
under this Agreement any amount it is required to withhold under any tax law
and will provide the Consultant with receipts and other documentation issued by
the relevant tax authority evidencing any such withholding.

 

5                            Warranty and Indemnity

 

5.1                    The Consultant represents and warrants that
as at the date of this Agreement it has full corporate power and authority to
enter into, perform and observe its obligations under this Agreement and its
obligations under this Agreement are valid, binding and enforceable.

 

5.2                    The Consultant fully indemnifies Sensis,
Telstra and their representatives (“Indemnified
persons”) against all Loss incurred by any of the indemnified
persons arising out of or in connection with:

 

(a)                    any breach of this Agreement or any act or
omission by the  Consultant in
connection with the Services;

 

(b)                   any illness, injury or death to any person,
or any loss or damage to any property of any person, arising out of or in
connection with the performance by the Consultant or its Personnel of their
obligations under this Agreement; and

 

(c)                    any negligence or any wilful act or omission
by the Consultant or its representatives (including the Personnel), or any
failure by any of them to comply with any relevant law;

 

except to the extent that
the Loss is caused by the negligence or wrongful act or omission of an
indemnified person.

 

 

6                            Confidentiality

 

6.1                    Each party must keep the Confidential
Information of the other party secret and must not:

 

(a)                    use or reproduce the Confidential Information
of the other party except for the purpose of performing its obligations under
this Agreement; or

 

(b)                   disclose the Confidential Information of the
other party to any other person, except as permitted under clause 6.2.

 

6.2                    Each party may disclose the Confidential
Information of the other party on a need to know basis to:

 

(a)                    its legal advisers in order to advise it in
relation to its rights under this Agreement;

 

(b)                   to the extent required by law or by a lawful
requirement of any government or governmental body, authority or agency or in
connection with legal proceedings relating to this Agreement;

 

(c)                    to its directors, officers, employees,
contractors and other representatives (including, in the case of the
Consultant, to the Personnel); and

 

(d)                   in the case of Sensis:

 

(i)                        to Telstra;

 

(ii)                     to its directors, officers, employees,
contractors and other representatives; and

 

(iii)                  as required under the Telstra Corporation Act
1991 (Cth) or the listing rules of any stock exchange on which any securities
of Telstra or Sensis are listed.

 

6.3                    If a party discloses any of the other party’s
Confidential Information under clause 6.2, it must take reasonable steps to
ensure that the recipient of the Confidential Information does not use,
reproduce or disclose that information except to the extent permitted by clause
6.2.

 

6.4                    Without limiting the Consultant’s obligations
under 6.3, upon reasonable request by Sensis, the Consultant must procure that
each Personnel signs a confidentiality agreement in favour of Sensis and
Telstra in a form approved in advance by Sensis.

 

6.5                    The obligations of confidentiality imposed by
this Agreement survive the termination of this Agreement.

 

7                            Term and Termination

 

7.1                    This Agreement commences or is deemed to have
commenced on the Commencement Date and continues for three years or until the
Completion Date of the Ongoing Phase (whichever occurs later), unless
terminated earlier in accordance with this Agreement (including this clause 7).
The parties may agree in writing to extend the term of this Agreement.

 

7.2                    Sensis may terminate this Agreement without
cause by giving to the Consultant 30 days’ written notice. If Sensis terminates
this Agreement under this clause, Sensis shall pay the Consultant the fees
specified in paragraph 1 of Schedule 2 for the data provided to Consultant up
to the termination date.

 

7.3                    Either party may terminate this Agreement immediately
by written notice to the other party if:

 

(a)                    the other party commits a breach of a
material term of this Agreement which is not capable of being remedied or, in
the case of the Consultant the breach is not remedied within 15 Working Days of
receiving written notice to do so; or

 

(b)                   the other party is or becomes Insolvent.

 

7.4                    Sensis may terminate this Agreement
immediately by written notice to the

 

 

Consultant if a Change of
Control occurs in respect of the Consultant which:

 

(a)                    is not notified in advance to Sensis; and

 

(b)                   would prevent or may reasonably be expected
to adversely impact the Consultant from fulfilling its obligations under this
Agreement.

 

7.5                    Upon expiry or termination of this Agreement
for any reason:

 

(a)                    each party must, as soon as reasonably
practicable, deliver to the other party, or at the option of the other party,
destroy or delete all documents and materials containing the other party’s
Confidential Information which are in its possession, custody or control;

 

(b)                   the Consultant must, as soon as reasonably
practicable, deliver to Sensis all Deliverables and any other property of
Sensis in its possession, custody or control; and

 

(c)                    Sensis will maintain all rights in and to the
Deliverables provided under this Agreement, but will have no further rights in
and to the Background IP, Project IP, or any other Intellectual Property rights
of the Consultant, except to the extent that this is contemplated under clause
3.2.

 

8                            Records and Access

 

8.1                   
The Consultant must keep full
and proper records relating to the performance of the Services during the Term
of this Agreement and for 7 years following the expiry or termination of this
Agreement.

 

8.2                    The Consultant must comply with all
reasonable requests by Sensis to have access to the records referred to in
clause 8.1 and must provide all assistance as may reasonably be requested by
Sensis in conducting any activities pursuant to this clause 8.2.

 

9                            Privacy

 

9.1                    The Consultant agrees, in respect of Personal
Information held in connection with this agreement (including information
relating to any customers of Sensis and Telstra):

 

(a)                   
to comply with applicable
legislation regarding privacy (including the Privacy Act 1988 (Cth) (regardless
of whether or not the Consultant is required to comply with the Privacy Act
1988 (Cth)) and all Sensis and Telstra policies notified to the Consultant from
time to time;

 

(b)                   to use Personal Information only for the
purpose of fulfilling its obligations under this agreement;

 

(c)                    not to disclose Personal Information without
the written authority of Sensis except for the purposes of fulfilling its
obligations under this Agreement. The Consultant must immediately notify Sensis
when it becomes aware that a disclosure of Personal Information may be required
by law; and

 

(d)                   not to transfer Personal Information to any
person (including itself) outside Australia, unless:

 

(i)                        it reasonably believes that the recipient of
the Personal Information is subject to a law, binding scheme, or contract which
effectively upholds principles for fair handling of Personal Information that
are substantially similar to the National Privacy Principles contained in
Schedule 3 of the Privacy Act 1988 (Cth); or

 

(ii)                     it has taken reasonable steps to ensure that
the recipient will not hold use or disclose any part of the Personal
Information in a manner which is inconsistent with the National Privacy
Principles contained in Schedule 3 of the Privacy Act 1988 (Cth).

 

 

10                     Insurance

 

10.1              The Consultant must take out and maintain
valid and enforceable for the Term of this Agreement (and in respect of
insurance policies written on a “claims made” basis for three years after the
Term) the following insurance policies (“Policies”):

 

(a)                   
professional indemnity
insurance for no less than USD$1,000,000 in annual aggregate; and

 

(b)                   public and product liability insurance for
the Consultant and the Consultant’s personnel against any liability to pay to
any party (including Sensis) arising out of or in connection with this
Agreement for an incurred amount of no less than USD$1,000,000 per accident or
incident claim.

 

10.2              The Consultant must ensure that Sensis’
interest under this Agreement is noted on the Policies (where required pursuant
to clause 10.1) and on request by Sensis must provide Sensis with certificates
from the Consultant’s insurers certifying that the Consultant has the insurance
required under clause 10.1.

 

11                     General

 

11.1              The Consultant may not transfer, assign,
charge, mortgage or encumber any of its rights under this Agreement without the
prior written consent of Sensis (which consent must not be unreasonably
withheld).

 

11.2              Sensis may transfer or assign any of its
rights, or novate any of its rights and obligations, under this Agreement to a
related body corporate or to a body corporate to which a material part of
Sensis’ assets are transmitted, transferred, or vested as part of a merger or
reconstruction of Sensis or Telstra.

 

11.3              A notice, approval, consent or other
communication (“Notice”) in
connection with this Agreement must be in writing and sent by standard prepaid
post or by facsimile marked and addressed in accordance with Item 6 of the
Commercial Terms.

 

11.4              The Consultant is an independent contractor
of Sensis and neither it nor its employees, agents or contractors are agents,
employees or joint venturers of Sensis.

 

11.5              This Agreement and the transactions
contemplated by them are governed by the law in force in Victoria, Australia
and each party unconditionally and irrevocably submits to the non exclusive
jurisdiction of the courts of Victoria, Australia and courts of appeal from
them for determining any dispute arising under this Agreement or in relation to
any transactions contemplated under this Agreement.

 

11.6              The Consultant must not sub-contract any of
its obligations under this Agreement without Sensis’ prior written consent.

 

11.7              The Consultant must sign, and must procure
each of its employees, agents and contractors to sign, all documents and do
anything reasonably required by Sensis to give effect to the licence
contemplated under clause 3.2 of all DP, if any, in the Deliverables to Sensis
and to effectively consent to Sensis using and changing any Deliverable as it
sees fit.

 

11.8              A provision of or a right created under this
agreement may not be:

 

(a)                    waived except in writing signed by the party
granting the waiver; or

 

(b)                   varied except in writing signed by the
parties.

 

11.9              Termination or expiry of this Agreement will
not affect:

 

(a)                    the rights of the parties which may have
accrued before the termination or expiry date; or

 

(b)                   the terms of this Agreement which by their
nature survive termination or expiry (including clause 6).

 

 

12                     Dispute Resolution

 

12.1              Any party claiming that a dispute has arisen
must give written notice to the other party setting out the nature of the
dispute and all other information relevant to the dispute.

 

12.2              If a party gives or receives a notice in
accordance with clause 12.1, each party will promptly:

 

(a)                    refer the dispute to an appropriate
representative of the party who has authority to settle the dispute on behalf
of that party; and

 

(b)                   give written notice to the other party of the
name, position and contact details of the party’s representative to whom the
dispute has been referred.

 

12.3              Within 10 Working Days’ of receipt of the
written notice referred to in clause 12.2 above, the parties’ representatives
must meet or communicate (whether electronically, by video-conference or
otherwise) and undertake bona fide negotiations to resolve the dispute.

 

12.4              In the event the dispute is not
satisfactorily resolved pursuant to clause 12.3 above, the parties will refer
the matter to their respective Chief Executive Officers who shall within 10
Working Days meet or communicate (whether electronically, by video-conference
or otherwise) and undertake bona fide negotiations to resolve the dispute,

 

12.5              If the parties are not able to resolve the
dispute under clause 12.4, and prior to applying to a court for relief, the
Chief Executive Officers will meet with an agreed neutral party to assist them
in reaching a satisfactory resolution to the dispute through bona-fide
negotiations.

 

12.6              Each party will bear its own costs of
complying with clauses 12.1 to 12.5.

 

12.7              Despite the existence of a dispute, each
party must continue to perform its obligations under this Agreement.

 

12.8              The parties shall exhaust the dispute
resolution processes set out in clauses 12.1 to 12.5 prior to applying to a
court for relief for any matter arising under or in relation to this Agreement
or from exercising any other right it might have under this Agreement, except
where a party seeks urgent interim or interlocutory relief.

 

13                     Agency

 

12.1              The Consultant:

 

(a)                    acknowledges that Sensis enters into this
Agreement as agent for and on behalf of Telstra; and

 

(b)                   agrees that:

 

(i)                        Sensis may exercise on behalf of Telstra any
rights granted to Telstra under this Agreement; and

 

(ii)                     any act performed by Sensis for and on behalf
of Telstra in connection with this Agreement shall be an act validly performed
by Telstra pursuant to this Agreement.

 

14                     Interpretation

 

14.1              The following words have these meanings in
this Agreement unless the contrary intention appears;

 

Additional
Services means the
Services Sensis may require the Consultant to provide under clause 1.3 of this
Agreement, and which are described further in paragraph 1.1 (b) of Schedule 1
(in the case of Services to be provided during the Initial Cycle) and in
paragraph 1.1 (c) of Schedule 1 (in the case of Services to be provided during
the Ongoing Phase).

 

Agreement means the Commercial Terms, these terms and
conditions, and the Schedules.

 

Background
IP means Intellectual
Property rights which the Consultant can establish came into existence other
than in connection with the provision of the

 

 

Services and which are owned
by or licensed to the Consultant. Background IP includes all Intellectual
Property rights in the DKB.

 

Brand
Package means the
graphic element (html or gif) of the Yellow Pages® online solution.

 

Commencement
Date means the date
specified as such in Item 3 of the Commercial Terms.

 

Commercial
Terms means the
commercial terms specified on the front of this Agreement.

 

Completion
Date means the date
specified as such in Item 3 of the Commercial Terms or as otherwise agreed.

 

Confidential
Information of a
party means all information relating to that party (and, in the case of Sensis,
to Telstra) and its representatives or customers which is or has been:

 

(a)                    disclosed to the other party under or in
connection with this Agreement; or

 

(b)                   learnt or acquired by the other party in the
performance of this Agreement:

 

other than any such
information which:

 

(c)                    is or becomes part of the public domain
otherwise than as a result of a disclosure in breach of confidence;

 

(d)                   is or came lawfully into the possession of
the other party from another source and otherwise than as a result of a
disclosure in breach of an obligation of confidence; or

 

(e)                    is or has been independently developed by the
other party.

 

Change of
Control shall be taken
to occur if any person or entity acquires any voting securities of the
Consultant such that immediately after the acquisition the person or entity has
beneficial ownership of 51% or more of the votes which are eligible to be cast
in the election of directors or any similar matter, provided, however, that
when determining whether a Change of Control has occurred, voting securities
that are acquired in an acquisition by:

 

(i)                       an employee benefit plan (or a trust forming
a part thereof) maintained by (A) the Consultant or (B) any corporation of
other person of which a majority of its voting power or its equity securities
or equity interests are owned directly or indirectly by the Consultant (a
“Subsidiary”), or

 

(ii)                    the Consultant or any Subsidiary;

 

shall not constitute an
acquisition for the purposes of this clause.

 

Corporations
Act means the
Corporations Act 2001 (Cth).

 

Data
Services means the
services described at paragraph 1.1 of Schedule 1 based on the stage of the
Agreement (Pilot, Initial Cycle, or Ongoing),

 

Deliverables means:

 

(a)                    the items listed and described as
Deliverables in paragraph 2 of Schedule 1; and

 

(b)                   any data, document, report or other thing (in
any form) created or developed by the Consultant to meet the requirements of
Sensis under this Agreement (including Sensis’ advertiser records and the
Taxonomy).

 

Display
Advertisement means a
Yellow Pages® print advertisement which:

 

(a)                    is available in a variety of sizes;

 

(b)                   includes business details; and

 

(c)                    may contain textual and graphical advertising
content.

 

DKB or
Directory Knowledge Base
means the software program and database known as Directory Knowledge Base

 

 

which is owned by the
Consultant or its licensors.

 

Enhanced
DKB means the version
of the DKB following incorporation of the changes performed by the Consultant
to the version of the DKB used for the Initial Cycle.

 

GST has the same meaning as in the A New Tax
System (Goods and Services Tax) Act 1999 (Cth).

 

GST
Exclusive Consideration
means any consideration payable under this Agreement that either does not
include an amount referable to GST or, if the consideration is inclusive of
GST, is that consideration excluding the amount referable to GST using the rate
of GST in force at the time the parties agreed on the consideration.

 

In-column
Advertisement means a
Yellow Pages® print advertisement contained within the columns of a
Yellow Pages® directory and which includes business details and may
contain textual and graphical advertising content.

 

Initial
Cycle means the period
(if any) during which the Consultant is required to provide to Sensis the
Additional Services described in paragraph 1.1(b) of Schedule 1.

 

A person (which includes a
body corporate) is Insolvent if
it:-

 

(a)                    makes or commences negotiations with a view
to making a general re-scheduling of its indebtedness, a general assignment,
scheme of arrangement or composition with its creditors;

 

(b)                   takes any corporate action, or any steps are
taken or legal proceedings are started for:

 

(i)                        its winding up, dissolution, liquidation, or
re-reorganisation, other than to reconstruct, merge or amalgamate while
solvent; or

 

(ii)                     the appointment of a controller, receiver,
administrator, official manager, trustee, or other similar officer, of it or of
any of its revenues or assets; or

 

(c)                    seeks or is granted protection from its
creditors under any applicable legislation.

 

Intellectual
Property or IP means
copyright (including moral rights); all rights conferred under statute, common
law or equity in relation to inventions (including patents), registered and
unregistered trademarks, registered and unregistered designs, circuit layouts
and confidential information; and all other rights resulting from intellectual
activity in the industrial, scientific, literary or artistic fields.

 

Loss means any loss, liability, cost or expense
(including legal expenses on a full indemnity basis).

 

Metro means the six (6)  Yellow Pages® print directories which relate to
the metropolitan markets of Australia.

 

Ongoing
Phase means the
period (if any) during which the Consultant is required to provide to Sensis
the Additional Services described in paragraph 1.1(c) of Schedule 1.

 

Personal
Information means
information or an opinion (including information or an opinion forming part of
a database), whether true or not, and whether recorded in a material form or
not, about a natural person whose identity is apparent, or can reasonably be
ascertained, from the information or opinion.

 

Personnel has the meaning given in clause 2.4.

 

Pilot
Project means the
trial to be conducted by Sensis with the assistance of the Consultant for the
purpose of determining the viability of full roll-out by Sensis of searchable
content as part of its online directory products.

 

 

Project IP means any Intellectual Property arising from
the performance of the Services under the Agreement, but excludes the
Deliverables.

 

Regional means the fifty (50) Yellow Pages®
print directories which relate to the regional markets of Australia.

 

Schedule means a schedule to this Agreement.

 

Sensis  Content
means any advertising, data or other information which is the property of
Sensis.

 

Sensis  Ontology
has the meaning given in clause 3.3.

 

Services means the services described at paragraph 1
of Schedule 1, and includes the Data Services and the Additional Services.

 

Special
Conditions means the
conditions specified in Item 5 of the Commercial Terms.

 

Tax Invoice has the same meaning as in the A New Tax
System (Goods and Services Tax) Act 1999 (Cth).

 

Taxonomy means the Yellow Pagesâ directory headings, properties, normalised
terms and synonyms and the relationships between these, as developed by the
Consultant for Sensis under this Agreement.

 

Telstra means Telstra Corporation Limited (ABN 33
051 775 556).

 

Working Day means Monday to Friday, excluding public
holidays in Victoria, Australia.

 

Work means a material form in which Project IP
vests including any work specified in Item 7 of the Commercial Terms and
includes a substantial part or adaptation of it.

 

14.2              In this Agreement unless the contrary
intention appears, a reference to:

 

(a)                    the Consultant includes a reference to the
Consultant’s employees, representatives and/or sub-contractors as the case
requires;

 

(b)                   this Agreement or another instrument includes
any variation or replacement of either of them;

 

(c)                    a “person” includes a firm, a body corporate,
an unincorporated association or an authority;

 

(d)                   the singular includes the plural and vice
versa;

 

(e)                    words such as “including” and “for example”
does not, and is not intended to, result in those words being taken to be words
of limitation; and

 

(f)                      time is a reference to the time in Melbourne,
Australia.

 

14.3              Headings are inserted for convenience and do
not affect the interpretation of this Agreement.

 

 

Schedule 1 - Services and Timetable

 

1                            Services

 

1.1                  General description of the Services

 

Services
to be provided in connection with the Pilot Project

 

(a)                    The Consultant will provide keyword
processing services in relation to content which is owned by or licensed to
Sensis, including print display advertisements, print in-column advertisements,
online solutions (incorporating business profiles & brand packages),
websites and adPoints.

 

For the Pilot Project, the
Consultant will receive from Sensis print display advertisements, print
in-column advertisements, online solutions (incorporating business profiles and
brand packages) and adPoints, not to exceed 25,000 units in various file
formats including; eps and xml.

 

As part of the Pilot
Project, the Consultant will be required to process a maximum of 25,000
advertisements under one level 1 heading (H1) to be determined by Sensis. This
H1 is a high level heading which acts as an umbrella heading for several Yellow
Pages® directories headings. The HI that has been selected for the
Pilot Project is “Automotive”. The five Yellow Pages® directory
headings that have been selected for the Pilot Project as part of the H1
“Automotive” are:

 

·                             21431 - Motor cars new

 

·                             23825 - Brake & Clutch Services

 

·                             18430 – Car Hire &/or Minibus Rental

 

·                             24058 – Tyres Retail

 

·                             23493 – Insurances – Motor Cars

 

The specific Services to be
provided by the Consultant as part of the Pilot Project will consist of the
following:

 

1.                          Selecting (in conjunction with Sensis) an H1
for the Pilot Project.

 

2.                          Adapting the Consultant’s Directory Knowledge
Base (“DKB”) for the H1 to the
Australian market. This process involves putting Sensis content through the
Consultant’s DKB and then identifying content which is particular and unique to
the Australian market and adapting the DKB accordingly.

 

3.                          Processing advertiser content provided by
Sensis.

 

4.                          Aggregating content.

 

5.                          Tagging and normalising data into the DKB
ontology which has been

adapted for the Australian market.

 

6.                          Delivering XML files of tagged advertisements
to Sensis.

 

 

Additional
Services to be provided in connection with the Initial Cycle

 

(b)                  
Sensis may, by written
notice to the Consultant under clause 1.3 of this Agreement, require the
Consultant after completion of the Pilot Project to provide further Services to
Sensis in respect to more advertisements.

 

The specific Services to be
provided by the Consultant as part of the Initial Cycle will consist of the
following:

 

1.                         
Adapting the Consultant’s
Directory Knowledge Base (“DKB”) for the Australian market. This process
involves putting Sensis content through the Consultant’s DKB and then
identifying content which is particular and unique to the Australian market and
adapting the DKB accordingly.

 

2.                         
Processing advertiser
content provided by Sensis.

 

3.                         
Aggregating content.

 

4.                         
Tagging and normalising
data into the DKB ontology which has been adapted for the Australian market.

 

5.                         
Delivering XML files of
tagged advertisements to Sensis.

 

Additional
Services to be provided in connection with the Ongoing Phase

 

(c)                   
Sensis may, by written
notice to the Consultant under clause 1.3 of this Agreement, require the Consultant
after completion of the Initial Cycle to provide further Services to Sensis in
respect to more advertisements.

 

The Services to be provided
by the Consultant during the Ongoing Phase will be the same as those services
provided by the Consultant during the Initial Cycle and will relate to all new
advertisements and advertisement changes received by Sensis following
completion of the Initial Cycle, except that Sensis may at its sole option
require the Consultant to use the Enhanced DKB in connection with its Service
delivery. If Sensis requires the Consultant to use the Enhanced DKB, Sensis
will be required to pay to the Consultant the rates described in paragraph 3(c)
of Schedule 2.

 

1.2      Description of the Data
Services

 

With effect from the Commencement
Date of the Initial Cycle (as set out in the Commercial Terms), the Consultant
will provide content production services to Sensis in the form of keyword
extraction services (“Data Services”).

 

The
Data Services will consist of keyword extraction of up to approximately 643,878
units (depending on whether Sensis requests any Additional Services under
paragraph l.1(b) or (c) above) from input files (as provided by Sensis under
paragraph 1.1 above) set out in the table below:

 

	
  Content
  Type

  	
   

  	
  Count*

  	
   

  	
  File
  Format

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Metro
  Display Advertisements

  	
   

  	
  101,301

  	
   

  	
  Thin
  EPS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Metro
  In-column advertisements

  	
   

  	
  126,626

  	
   

  	
  XML

  	
   

  

 

 

	
  Content
  Type

  	
   

  	
  Count*

  	
   

  	
  File
  Format

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Regional
  Display Advertisements

  	
   

  	
  98,699

  	
   

  	
  Thin
  EPS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Regional
  In-column advertisements

  	
   

  	
  123,374

  	
   

  	
  XML

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Brand
  Packages

  	
   

  	
  37,911

  	
   

  	
  HTML
  & GIF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business
  profiles

  	
   

  	
  37,911

  	
   

  	
  XML

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AdPoints

  	
   

  	
  93,056

  	
   

  	
  XML

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Websites

  	
   

  	
  52,807

  	
   

  	
  HTML

  	
   

  

 

*The Consultant acknowledges
that, while Sensis has used reasonable efforts to accurately estimate the
number of units to be delivered by the Consultant, some changes to this
estimate may occur.

 

The Data Services also
include the collection of font size, font type and position in the
advertisement beginning in the Initial Cycle.

 

The
Deliverables must be in the form described in Schedule 4.

 

1.3      Production Reporting

 

With effect from the
Commencement Date of the Initial Cycle (as set out in the Commercial Terms),
the Consultant will provide Sensis with a daily report setting out the status
of the data being prepared by the Consultant. The form of the report will be as
agreed between Sensis and the Consultant from time to time. The report may be
produced manually, or via an automated system.

 

1.4      Personnel

 

Personnel
numbers

 

(a)                   
Consultant must commit
sufficient Personnel to the provision of the Services so that it is able to
provide the Services and the Deliverables in accordance with the timetable set
out in paragraph 2 below (as amended and varied from time to time).

 

Key
Personnel

 

(b)                  
Without limiting the
Consultant’s obligations under paragraph 1.4(a) above, the Consultant must
ensure that, until the expiry or termination for any reason of this Agreement
or until the relevant Key Personnel has completed his or her specific role in
the delivery of the Services (whichever occurs earlier), the Key Personnel (if
any) are engaged in the provision of the Services to Sensis. The Key Personnel
are Mike Bauer, Sean Bowman and Jamie Fergusson.

 

 

Consultant’s
obligations in relation to Personnel

 

(c)                   
The Consultant
acknowledges that:

 

(i)                        it is solely responsible for the acts and
omissions of all Personnel while they are involved in providing the Services to
Sensis; and

 

(ii)                     subject to paragraph 1.4(g) below, all
Personnel are and will remain at all times employees or contractors of the
Consultant (and will not be or be deemed to be employees or contractors of
Sensis or Telstra).

 

(d)      
On request from Sensis, the Consultant must

 

(i)                        give Sensis details of the skills,
qualifications and experience of any Personnel;

 

(ii)                     procure that all Personnel sign individual
confidentiality agreements with Sensis in a form approved in advance by Sensis;
and

 

(iii)                  promptly remove or replace (at Sensis’
election) any Personnel.

 

Change of
Personnel by the Consultant

 

(e)                   
Unless requested to do so
by Sensis, the Consultant will only be entitled to change a person named as Key
Personnel if he or she leaves the employment of the Consultant or is unable to
work by reason of illness or incapacity or by prior written agreement with
Sensis.

 

(f)                     
Without limiting the
requirements under paragraph (e) above, the Consultant must obtain Sensis’
approval before replacing any Personnel and must ensure that all replacement
Personnel are suitably qualified and experienced.

 

Insolvency and
breach

 

(g)                  
If the Consultant is or
becomes Insolvent or this Agreement is terminated by Sensis for breach, Sensis
reserves the right to approach any Personnel (including the Key Personnel) to
offer him or her a position as an employee or contractor of Sensis and the
Consultant must not do anything to binder the acceptance of such an offer by
those Personnel.

 

2         Timetable

 

Subject to paragraph 3
below, the Consultant must perform the Services in accordance with the
following timetable:

 

Metro

 

	
  Deliverable

  	
   

  	
  Responsibility

  	
   

  	
  Delivery
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pilot Data Extract
  (business profiles, brand packages, in-column ads, adPoints)

  	
   

  	
  Sensis

  	
   

  	
  03/10/2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pilot
  Data Extract (display ads)

  	
   

  	
  Sensis

  	
   

  	
  15/10/2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pilot
  Data

  	
   

  	
  Aptas

  	
   

  	
  06/11/2003

  	
   

  

 

 

	
  Deliverable

  	
   

  	
  Responsibility

  	
   

  	
  Delivery
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Cycle Metro Data
  Extract (business profiles, brand packages, in-column ads, adPoints)

  	
   

  	
  Sensis

  	
   

  	
  20/11/2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Cycle Metro Data
  Extract (display ads)

  	
   

  	
  Sensis

  	
   

  	
  17/12/2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Cycle Metro Data

  	
   

  	
  Aptas

  	
   

  	
  06/01/2003

  	
   

  

 

Regional

 

(See table on next page)

 

 

Regional

 

	
  Yellow
  Pages Regional Processing Schedule

  
	
   

  
	
  DIRECTORY

  	
   

  	
  Deliver
  to Aptas

  	
   

  	
  Deliver
  to Sensis

  
	
  N01Y

  	
   

  	
  Tamworth

  	
   

  	
  28-Dec-03

  	
   

  	
  28-Jan-03

  
	
  T03Y

  	
   

  	
  Launceston

  	
   

  	
  28-Dec-03

  	
   

  	
  28-Jan-03

  
	
  N05Y

  	
   

  	
  Dubbo

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  N09Y

  	
   

  	
  Kempsey

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  N12Y

  	
   

  	
  Bathurst

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  N14Y

  	
   

  	
  Alburv

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  Q04Y

  	
   

  	
  Toowoomba

  	
   

  	
  5-Jan-04

  	
   

  	
  05-Feb-03

  
	
  N17Y

  	
   

  	
  Windsor

  	
   

  	
  12-Jan-04

  	
   

  	
  12-Feb-03

  
	
  Q07Y

  	
   

  	
  Beaudesert

  	
   

  	
  12-Jan-04

  	
   

  	
  12-Feb-03

  
	
  V07Y

  	
   

  	
  Wangaratta

  	
   

  	
  12-Jan-04

  	
   

  	
  12-Feb-03

  
	
  Q08Y

  	
   

  	
  Roma

  	
   

  	
  19-Jan-04

  	
   

  	
  19-Feb-03

  
	
  S06Y

  	
   

  	
  Pt
  Augusta

  	
   

  	
  19-Jan-04

  	
   

  	
  19-Feb-03

  
	
  N13Y

  	
   

  	
  Penrith

  	
   

  	
  26-Jan-04

  	
   

  	
  26-Feb-03

  
	
  N04Y

  	
   

  	
  Canberra

  	
   

  	
  26-Jan-04

  	
   

  	
  26-Feb-03

  
	
  S05Y

  	
   

  	
  Barossa
  Valley

  	
   

  	
  2-Feb-04

  	
   

  	
  02-Mar-03

  
	
  S07Y

  	
   

  	
  South
  East

  	
   

  	
  2-Feb-04

  	
   

  	
  02-Mar-03

  
	
  S08Y

  	
   

  	
  Yorke
  Peninsula

  	
   

  	
  2-Feb-04

  	
   

  	
  02-Mar-03

  
	
  V08Y

  	
   

  	
  Shepparton

  	
   

  	
  2-Feb-04

  	
   

  	
  02-Mar-03

  
	
  Q06Y

  	
   

  	
  Townsville

  	
   

  	
  7-Feb-04

  	
   

  	
  07-Mar-03

  
	
  V03Y

  	
   

  	
  Ballarat

  	
   

  	
  7-Feb-04

  	
   

  	
  07-Mar-03

  
	
  N07Y

  	
   

  	
  Wollongong

  	
   

  	
  16-Feb-04

  	
   

  	
  16-Mar-04

  
	
  N10Y

  	
   

  	
  Broken
  Hill

  	
   

  	
  16-Feb-04

  	
   

  	
  16-Mar-03

  
	
  N19Y

  	
   

  	
  Cooma

  	
   

  	
  16-Feb-04

  	
   

  	
  16-Mar-03

  
	
  Q03Y

  	
   

  	
  Maryborough

  	
   

  	
  16-Feb-04

  	
   

  	
  16-Mar-03

  
	
  Q01Y

  	
   

  	
  Cairns

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  T04Y

  	
   

  	
  Burnie

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  V05Y

  	
   

  	
  Warrnambool

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  V10Y

  	
   

  	
  Mildura

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  W03Y

  	
   

  	
  South
  Western

  	
   

  	
  6-Mar-04

  	
   

  	
  06-Apr-03

  
	
  N06Y

  	
   

  	
  Lismore

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  N11Y

  	
   

  	
  Muswellbrook

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  N18Y

  	
   

  	
  Campbelltown

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  Q09Y

  	
   

  	
  Sunshine
  Coast

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  V01Y

  	
   

  	
  Bairnsdale

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  W01Y

  	
   

  	
  Great
  Northern

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  W02Y

  	
   

  	
  Central
  & East

  	
   

  	
  13-Mar-04

  	
   

  	
  13-Apr-03

  
	
  N20Y

  	
   

  	
  Bega

  	
   

  	
  27-Mar-04

  	
   

  	
  27-Apr-03

  
	
  V09Y

  	
   

  	
  Mornington

  	
   

  	
  27-Mar-04

  	
   

  	
  27-Apr-03

  
	
  V02Y

  	
   

  	
  Geelong

  	
   

  	
  1-Apr-04

  	
   

  	
  01-May-03

  
	
  V04Y

  	
   

  	
  Bendigo

  	
   

  	
  1-Apr-04

  	
   

  	
  01-May-03

  
	
  V06Y

  	
   

  	
  Warragul

  	
   

  	
  1-Apr-04

  	
   

  	
  01-May-03

  
	
  S09Y

  	
   

  	
  Northern
  Territory

  	
   

  	
  5-Apr-04

  	
   

  	
  05-May-03

  
	
  N02Y

  	
   

  	
  Wagga

  	
   

  	
  11-Apr-04

  	
   

  	
  11-May-03

  
	
  N16Y

  	
   

  	
  Nowra

  	
   

  	
  26-Apr-04

  	
   

  	
  26-May-03

  
	
  N08Y

  	
   

  	
  Central
  Coast

  	
   

  	
  5-May-04

  	
   

  	
  05-Jun-03

  
	
  N15Y

  	
   

  	
  Goulburn

  	
   

  	
  5-May-04

  	
   

  	
  05-Jun-03

  
	
  Q10Y

  	
   

  	
  Mackay

  	
   

  	
  5-May-04

  	
   

  	
  05-Jun-03

  
	
  Q02Y

  	
   

  	
  Rockhampton

  	
   

  	
  12-May-04

  	
   

  	
  12-Jun-03

  
	
  Q05Y

  	
   

  	
  Gold
  Coast

  	
   

  	
  13-May-04

  	
   

  	
  13-Jun-03

  
	
  N03Y

  	
   

  	
  Newcastle

  	
   

  	
  23-May-04

  	
   

  	
  23-Jun-03

  

 

 

3                            Delay

 

3.1                    The Consultant must give notice to Sensis as
soon as it becomes apparent that it will not be able to meet a particular
deadline set out in paragraph 2 above. The notice must be in writing and
include details of:

 

·                            the delay;

 

·                            the cause or causes (whether because of any act or omission of the
Consultant, Sensis, their representatives, a combination or otherwise); and

 

·                            the steps the Consultant is taking to minimise the delay.

 

3.2                    If the Consultant gives Sensis a notice under
paragraph 3.1 above the parties must, at the request of either party, meet as
soon as practicable, in good faith, with a view to revising the delivery dates
for the various deliverables (as set out in paragraph 2 above). Unless and
until the parties agree on revised delivery dates, the delivery dates set out
in paragraph 2 will continue to apply.

 

3.3                    If Sensis delays the delivery of the input
data described in paragraph 1 above by more than one (1) Working Day for the
Pilot Project or more than three (3) Working Days for the Initial Cycle or the
Ongoing Phase, then the project deliverable date will be pushed out by the
number of Working Days that Sensis delays the delivery of the input data
described in paragraph 1 above.

 

 

Schedule 2  -
Fees and payment

 

1                           
Fees

 

(a)                   
(Pilot
Project) Sensis agrees to
pay the Consultant a Fee of [***] (inclusive of all taxes and other charges) in
consideration for the Services to be provided by the Consultant under paragraph
1.1(a) of Schedule 1 as part of the Pilot Project.

 

(b)                  
(Initial
Cycle) If Sensis requires
the Consultant to provide Additional Services in accordance with paragraph
l.l(b) of Schedule 1 during or in connection with the Initial Cycle, the fees
for such Additional Services shall be based on the per unit fee (inclusive of
all taxes and other charges) specified in paragraph 3 of this Schedule 2, with
the following exceptions:

 

1.                        
The Fee for extracting up
to the first [***] .eps files shall be [***] (inclusive of all taxes and other
charges). If Sensis requires the Consultant to process less than [***] .eps
files as part of the Initial Cycle, it shall receive a credit for

 

a.                         the number of .eps files (out of the original
[***]) not actually extracted, as long as the actual number of .eps files which
Sensis requires the Consultant to process exceeds [***]; and

 

b.                        the number of .eps files (out of the original
[***]) not actually normalized, as long as the actual number of .eps files
which Sensis requires the Consultant to normalize exceeds [***]

 

Such credits shall be based
on the rate cards in Section 3, paragraphs 4 (a) and (b) of this Schedule 2.

 

Credits shall only be
applied if Sensis requests the Consultant to provide Services to the entire Sensis
asset base described in paragraph 1.2 of Schedule 1.

 

2.                        
During the Initial Cycle,
any websites extracted shall be done at a rate equivalent to the per unit rate
for display ads for up to the first [***] websites.

 

3.                        
An estimate of the cost
of the Initial Cycle is provided in Schedule 4. This estimate is not binding on
either party. Based upon that estimate, the fees for the initial Cycle in
excess of the initial payment specified in paragraph 1(b)(1) above will be
approximately [***]. The variance, if any, from this estimate will result from
changes to the estimated number of units specified in section 1.2 of Schedule
1.

 

(c)                   
(Ongoing
Phase) If Sensis requires
the Consultant to provide Additional Services in accordance with paragraph
1.1(c) of Schedule 1 during or in connection with the Ongoing Phase, then the
Fees for those Additional Services will be the per unit fee (inclusive of all
taxes and other charges) specified in paragraph 3 of this Schedule 2.

 

2         Payment
Schedule

 

(a)                   
(Pilot
Project) The Fees payable by
Sensis under paragraph 1(a) of this Schedule 2 will be payable by Sensis in
accordance with the payment schedule set out below:

 

 

(i)                          [***] payable on execution of this Agreement; and

 

(ii)                     [***] payable on the issue date of an
acceptance certificate for the Deliverables for the Pilot Project under either
paragraph 2.3 or 2.5(a) of Schedule 3.

 

(b)                  
(Initial
Cycle) The Fees payable by
Sensis under paragraph 1(b) of this Schedule 2 will be payable by Sensis in
accordance with the payment schedule set out below:

 

(i)                        [***] is payable on the Commencement Date of
the Initial Cycle; and

 

(ii)                     the balance of any Fees earned over and above
item 2(b)(i) of this Schedule 2 will be payable on the issue of an acceptance
certificate for the Deliverables for the Initial Cycle under either paragraph
2.3 or 2.5(a) of Schedule 3.

 

(c)                   
(Ongoing
Phase) The Fees payable by
Sensis under paragraph 1(c) of this Schedule 2 will be payable by Sensis
monthly in arrears.

 

3                           
Per
Unit Pricing Schedule*

 

(a) Extraction Fees

 

	
  Volume
  Per Year

  	
   

  	
  Display
  Ads or

  Business Profiles

  	
   

  	
  In-Column,
  Ad Points

  or Brand Packages

  	
   

  	
  Websites

  	
   

  
	
  1-50,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  50,001-100,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  100,001-250,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  250,000
  +

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

(An additional fee of US$0.50 will be charged for
extraction of any non-readable assets.)

 

(b) Base DKB Normalization Fees

 

	
  Volume
  Per Year

  	
   

  	
  Display
  Ads, Business Profiles

  or Websites

  	
   

  	
  In-Column,
  Ad Points or

  Brand Packages

  	
   

  
	
  1-50,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  50,001-100,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  100,001-250,000

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  250,000
  +

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

 

(c) Enhanced DKB Fees per Business

 

	
  Year
  2004

  	
   

  	
  [***]

  
	
  Year
  2005

  	
   

  	
  [***]

  

 

* Following completion of
the Initial Cycle, the Consultant and Sensis agree to review the rates set out
in Per Unit Pricing Schedule above. The Consultant agrees that any new pricing
for the Ongoing Phase will not exceed the rates set out in Per Unit Pricing
Schedule above. If the parties cannot agree on new pricing, the pricing set out
above will continue to apply.

 

4.                        
Set
off

 

If the parties enter into
negotiations for a licence in and to the Consultant’s Intellectual Property
including, but not limited to, Consultant’s DKB, the parties will negotiate in
good faith with a view to applying up to [***] of the Fees actually paid under
this Agreement for the Pilot Project and the Initial Cycle as “credits” against
any amount payable by Sensis under the licence agreement.

 

 

Schedule 3 - Acceptance Criteria

 

1                           
Acceptance
Criteria

 

1.1                   
The content of the
Deliverables provided to Sensis by the Consultant must:

 

(a)                   
contain all agreed
inputs;

 

(b)                  
be in the correct file
format (as agreed in paragraph 1.2 of Schedule 1);

 

(c)                   
accurately reflect the
source data provided to the Consultant by Sensis with the following quality
assurance:

 

(i)                       
100% of files delivered
are returned;

 

(ii)                    
90% of eligible text in
each advertisement is extracted;

 

(iii)                 
98% of spelling mistakes
in eligible text are corrected and indexed; and

 

(iv)                
95% of eligible terms are
normalised correctly.

 

For the purposes of this
paragraph l.l(c):

 

(i)                      
“eligible terms” means
any text in an advertisement that may constitute meaningful content; and

 

(ii)                   
“normalised correctly”
means associated with a generic term,

 

for ontology development and
keyword extraction.

 

2                           
Acceptance
Testing

 

Certification

 

2.1                   
Once the Consultant has
completed development of the Deliverables, the Consultant must promptly and at
its own cost:

 

(a)                   
notify Sensis; and

 

(b)                  
conduct such tests as are
necessary to verify that the Deliverables comply with the Acceptance Criteria
(as set out in paragraph 1 of this Schedule 3) and, upon request by Sensis,
provide Sensis with copies of all data, results and other information relating
to the tests; and

 

(d)                  
upon successful
completion of each such test, certify in writing to Sensis that the Deliverable
meet the Acceptance Criteria.

 

Sensis tests

 

2.2                   
Following receipt by
Sensis of a certificate under paragraph 2.1(d) above, Sensis may, at Sensis’
sole discretion and cost, conduct its own acceptance tests in relation to the
Deliverables to confirm that the Deliverables comply with the Acceptance
Criteria (as set out in paragraph 1 of this Schedule 3). The Consultant must
provide such reasonable assistance as may be requested by Sensis to enable
Sensis to conduct these acceptance tests (eg providing Sensis with access to
its systems and the DKB).

 

 

Acceptance Certificate

 

2.3                   
If Sensis is satisfied
that the Deliverables meet the Acceptance Criteria (whether on the basis of the
tests conducted by the Consultant, or by Sensis, or otherwise), Sensis will
provide a written acceptance certificate to the Consultant.

 

Failure of acceptance testing

 

2.4                   
If the acceptance tests
conducted by the Consultant or Sensis, or the details provided to Sensis under
paragraph 2.1(b) above, reveal that a Deliverable has an error or defect, or
otherwise does not meet any of the Acceptance Criteria, the Consultant must, at
its own cost, promptly rectify and correct that error. Once the error(s) have
been rectified, the Consultant must, and Sensis may, repeat the acceptance
tests contemplated under paragraphs 2.1 and 2.2.

 

2.5                   
If Sensis is satisfied on
the basis of these additional acceptance tests that:

 

(a)                   
the Deliverables meet the
Acceptance Criteria, Sensis will provide a written acceptance certificate to
the Consultant.

 

(b)                  
the Deliverables do not
meet the Acceptance Criteria, Sensis may, at its option:

 

(i)                          accept the Deliverables “as is” at an agreed reduction in the Fees
payable by Sensis under Schedule 2; or

 

(ii)                     terminate this agreement by written notice to
the Consultant (in which case, Sensis will not be required to pay any
post-acceptance component of the Fees).

 

(c)                   
If Sensis exercises a
right under paragraph 2.5(b)(i) and the parties are unable to agree on an
appropriate reduction in Fees within 10 Working Days’ of Sensis exercising such
a right, then Sensis may terminate this agreement by written notice to the
Consultant (in which case, Sensis will not be required to pay any
post-acceptance component of the Fees).

 

Further tests

 

2.5                   
Sensis may, at its own
cost, conduct tests in relation to the Deliverables at any time during the term
of this agreement. If such tests reveal that any of the Deliverables are
failing or have failed to meet the Acceptance Criteria, Sensis will notify the
Consultant and the Consultant must, at its own cost, promptly rectify that
failure.

 

 

Schedule 4 – Initial Cycle Cost Estimate

 

 

	
  Initial Cycle

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Display
  - EPS

  	
   

  	
   

  	
   

  	
   

  
	
  Regional display

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Metro display

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Brand packages

  	
   

  	
  [***]

  	
   

  	
  ([***]
  Normalization)

  
	
  subtotal

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  
	
  Regional incolumn (XML)

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Metro Incolumn (XML)

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Business profiles (XML)

  	
   

  	
  [***]

  	
   

  	
   

  
	
  AdPoint (XML)

  	
   

  	
  [***]

  	
   

  	
   

  
	
  subtotal

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Extraction

  	
   

  	
   

  	
   

  	
   

  
	
  Proposal
  Includes up to 250,000 Display

  	
   

  	
   

  	
   

  	
   

  
	
  Display
  ads

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Brand
  Packages

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Credit
  of ads

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Revenue
  credit

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base
  DKB - Normalizing

  	
   

  	
   

  	
   

  	
   

  
	
  Proposal
  includes up to 250,000 Display

  	
   

  	
   

  	
   

  	
   

  
	
  Display
  ads

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Business
  Profiles

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Credit
  of ads

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue
  credit

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Extraction
  - Other

  	
   

  	
   

  	
   

  	
   

  
	
  Regional incolumn (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Metro incolumn (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Business profiles (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  AdPoint (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base DKB Normalizing-
  Other

  	
   

  	
   

  	
   

  	
   

  
	
  Regional incolumn (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Metro Incolumn (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Brand Packages

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  AdPoint (XML)

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-readable premium – 5%

  	
   

  	
   

  	
   

  	
   

  
	
  Display

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Incolumn

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal
  without Websites

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Initial
  Payment

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  TOTAL
  WITHOUT WEBSITES

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Websites

  	
   

  	
   

  	
   

  	
   

  
	
  Extraction

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Normalization

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
  TOTAL
  Websites

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
  [***]Exhibit 10.34

 

 

ISx MASTER
LICENSE AND SUPPORT AGREEMENT

 

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

 

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

 

RECITALS:

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

“Territory” means Finland unless otherwise specified.

 

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

 

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

 

3.                                     
Grant
of Software License

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

5

 

4.                                     
Software
Support and Maintenance Services.

 

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

 

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

 

Obligations
Of Licensee

 

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

 

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

 

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

 

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

 

6

 

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

 

5.                                     
Agreement Structure & Invoicing.

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

8

 

7.                                     
Taxes.

 

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

 

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

 

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

 

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

 

10.                              
Warranty and Warranty Disclaimer.

 

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

 

9

 

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

 

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

 

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

 

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

 

10

 

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

 

11.                              
INDEMNIFICATION.

 

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

 

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

 

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

 

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

 

11

 

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

 

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

 

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

 

12.                              
LIMITATION OF LIABILITY.

 

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

 

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

 

12

 

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

 

13.                              
Term and Termination.

 

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

 

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

 

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

 

13

 

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

 

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

 

15.                              
Confidentiality.

 

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

 

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

 

14

 

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

 

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

 

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

 

17.                              
Notices.

 

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

 

	
   

  	
  If
  to ISx to:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Information
  Services Extended, Inc.

  	 

	
   

  	
   

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

  	 

	
   

  	
   

  	
  Ft.
  Lauderdale, FL 33309

  	 

	
   

  	
   

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

  	 

	
   

  	
   

  	
  miles@isxinc.com

  	 

	
   

  	
   

  	
  Attention:
  Miles Wortman

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  If
  to IBM to:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Oy
  International Business Machines Ab

  	 

	
   

  	
   

  	
  Tietokuja
  2

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

15

 

	
   

  	
   

  	
  FIN-00330
  Helsinki

  
	
   

  	
   

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

  
	
   

  	
   

  	
  erkki.lumivirta@fi.ibm.com

  
	
   

  	
   

  	
  Attention:
  Erkki Lumivirta

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If
  to Licensee to:

  	
   

  	
   

  
	
   

  	
   

  	
  Company:
  Oy ENIRO DS Ab

  
	
   

  	
   

  	
  Address:
  Saterinkatu 6, 02601 Espoo

  
	
   

  	
   

  	
  Telephone:
  +358 20 111 0510

  
	
   

  	
   

  	
  Fax:
  +358 20 111 0511

  
	
   

  	
   

  	
  e-mail:
  heikki.mikkonen@eniro.fi

  
	
   

  	
   

  	
  Attention:
  Heikki Mikkonen

  
					

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

AGREED:

 

	
  Licensor:

  	
   

  	
  Licensee:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Information Services eXtended, Inc.

  	
   

  	
  Oy Eniro DS Ab

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Miles Wortman

  	
   

  	
  By:

  	
  /s/
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:
  Miles Wortman

  	
   

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:
  Director, Global Operations

  	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ISx Vendor:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Oy International Business Machines

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

18

 

EXHIBIT ”A”

to Master License & Support Agreement

 

ISx
SOFTWARE

 

	
   

  	
  Computer
  Programs are listed in IBM CONTRACT

  
	
  2.

  	
  Effective
  Date: January 1, 2003

  
	
  3.

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

  
	
  4.

  	
  Annual
  Service Charges (ASC) are stated in IBM CONTRACT

  
	
  5.

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

  

 

19

 

EXHIBIT ”B”

to License & Support Agreement

 

SOFTWARE
SUPPORT PROCESS

 

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

 

Scope
Of Process

 

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

 

Standard Maintenance Services

 

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

 

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

 

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

 

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

 

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

 

·                 
Customer ID

·                 
Customer Password

·                 
Customer contact name

ISx
product name and version

Severity
of the Incident

·                 
Description of the
problem

 

20

 

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

 

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

 

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

 

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

 

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

 

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

 

SEVERITY 1 (CRITICAL) DESCRIPTION

 

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

 

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

 

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

 

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

 

21

 

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

 

SEVERITY 2 (MAJOR) DESCRIPTION

 

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

 

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

 

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

 

SEVERITY 3 (MINOR) DESCRIPTION

 

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

 

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

 

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

 

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

 

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

 

22

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