Document:

Billing Services Agreement

 Exhibit 10.6 
 EXECUTION COPY 
 BILLING SERVICES AGREEMENT 
 Between 
 IDEARC MEDIA CORP. 
 and 
 Verizon Services Corp.

 THIS BILLING SERVICES AGREEMENT (“Agreement”) effective the 17th day of November, 2006 (“Effective Date”) is entered into
between Verizon Services Corp., with offices at One Verizon Way, Basking Ridge, New Jersey 07920, acting on behalf of its affiliated operating telephone companies listed in Attachment A (together and separately) referred to in this Agreement as
“Verizon” and Idearc Media Corp. , a Delaware corporation, with offices at Verizon Place, 2200 West Airfield Drive, P.O. Box 619810, DFW Airport, TX 75261-9810 (“referred to in this Agreement as “Idearc”). Idearc and Verizon
are sometimes collectively referred to as the “Parties” and individually referred to as a “Party.” 
 NOW, THEREFORE, in
consideration of the mutual obligations of the Parties, Verizon and Idearc agree as follows: 
 Section 1 - Scope and Effect of This Agreement

  

	1.1	The terms used in this Agreement, unless otherwise defined herein, shall have the meanings set forth in Attachment B. 

  

	1.2	This Agreement specifies the rights and obligations of each Party with regard to Verizon’s provisioning of billing Services to Idearc. All prior Billing and Collections and
Billing Services Agreements between the Parties are hereby terminated on the Effective Date of this Agreement. 

  

	1.3	Idearc desires to purchase from Verizon the Services listed below (“Services”): 

  

					
	 Service
	  	 Service Attachment
	  	 Applicable CIC/ABEC/ACNA

			
	 Message Ready Service with Inquiry Verizon Billing Regions 5-8
	  	Service Attachment 1	  	9007; BAV
			
	 Invoice Service without Inquiry
	  	Service Attachment 2	  	9007; BAV
			
	 End-Users Communications Service
	  	Service Attachment 5	  	9007; BAV
			
	 Supplemental Services
	  	Service Attachment 7	  	9007; BAV
			
	 Directory Publishing Service Without Inquiry Service Verizon Billing Regions 1-4
  
     With Inquiry Service Verizon Billing
Regions 5-8
	  	Schedule 1	  	9007; BAV

  

	1.4	Services are provided pursuant to the terms and conditions of this Agreement, Verizon Policies, and Applicable Law. Should a conflict exist between the provisions contained in this

  

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 Agreement and Applicable Law, the provisions of Applicable Law shall prevail. In those jurisdictions
where a service is offered by tariff, the provisions of this Agreement shall apply only to the extent that they do not change, modify, or conflict with the tariff offering. 
  

	1.5	If Applicable Law requires that any of the Services provided pursuant to tariff shall no longer be offered under tariff and provided that it is otherwise permissible, the Parties
agree to continue such Services under the rates, terms, and conditions set forth in this Agreement. 

  

	1.6	If Applicable Law requires that this Agreement be approved by a regulatory agency before the Agreement becomes effective, this Agreement, even if fully executed, shall not become
effective in such jurisdiction until the first Business Day after such approval shall have been obtained. 

 Section 2 - Services

  

	2.1	Verizon shall perform the Services described in the Service Attachments as described in Section 1.3 and attached hereto and incorporated herein by reference. During the Term
(as described in Section 5.1), Verizon, in its sole discretion may agree to provide additional Services to Idearc or to add additional Verizon Billing Regions by amendment to this Agreement. Such new Services and Verizon Billing Regions shall
be deemed to be part of the Services or Verizon Billing Regions defined in this Agreement to the same extent as if they were originally part of this Agreement. 

  

	2.2	Verizon will provide to Idearc Services for Billing Records. Unless Verizon specifically agrees to do so in writing, Verizon shall not be obligated to provide Billing Service for
any Miscellaneous Service, other products or services, call types or charges, including but not limited to recurring or non-recurring service fees, membership fees, charges for merchandise, catalogs, and political or charitable contributions.
Miscellaneous Services are set forth in Verizon’s Policies as amended from time to time. It is Idearc’s responsibility to ensure that all Billing Records sent to Verizon for billing fully comply with Verizon’s Policies and applicable
rules and regulations. 

  

	2.3	Idearc shall only submit charges for Miscellaneous Services that Verizon has agreed upon in writing and that comply with Applicable Laws and Verizon’s Policies. All
Miscellaneous Services charges must be submitted to Verizon on the appropriate EMI record type. 

  

	2.4	Verizon, in its sole discretion, upon written notice to Idearc, may suspend or terminate Services to any CIC or Sub-CIC that engages the conduct described in subsections 2.4.1,
2.4.2, 2.4.3 and 2.4.4 below, 

  

	 	2.4.1 	Idearc submits unauthorized Miscellaneous Services in its Billing Records for inclusion on the End User bill; 

  

	 	2.4.2 	Verizon receives fifteen (15) or more Escalated Complaints during any calendar month from End-Users stating that they have been Crammed (i.e., billed for services or charges
they did not authorize); or a Sub-CIC exceeds the thresholds for Complaints set forth in the BUG: 

  

	 	2.4.3 	Adjustment levels for charges related to Cramming, as determined by Verizon in its sole and absolute discretion, exceed fifteen percent (15%) of the amount billed to End-Users
for two (2) consecutive months, or 

  

	 	2.4.4 	 A federal or state agency files a complaint or initiates an investigation alleging unlawful cramming or billing activity, or is found by a court of competent
jurisdiction or 

  

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state agency through its administrative judicial powers to have engaged in any unlawful activity. 

 Section 3 - Idearc Representations and Warranties 
  

	3.1	Idearc represents and warrants that it: 

  

	 	3.1.1	is incorporated in the state of Delaware, and is currently in good standing with the Secretary of State and taxing authorities of such jurisdiction; 

  

	 	3.1.2	has full regulatory authority, if required, to conduct business as a telecommunications service provider or billing agent in each Verizon Billing Region where Services have been
requested by Idearc; 

  

	 	3.1.3	maintains all applicable and requisite licenses, certificates, registrations, and authorizations; 

  

	 	3.1.4	will comply with, and require that all Sub-CICs for which it provides records will comply with, all Applicable Laws, regulations orders or other legislative or judicial mandate with
respect to Verizon’s provision of Services under this Agreement; and 

  

	 	3.1.5	is financially capable of carrying out the duties and responsibilities required in this Agreement and will pay its bills when they become due. 

  

	3.2	Idearc represents and warrants that it shall NOT submit to Verizon for billing any of the following: 

  

	 	3.2.1	Billing Records other than Billing Records authorized to be submitted pursuant to a Service Attachment; 

  

	 	3.2.2	Billing Records Idearc does not own or, if Idearc is acting as a Clearinghouse for other telecommunication service providers, does not have the authority to act on behalf of the
service provider including the right to sell the accounts receivable to Verizon; 

  

	 	3.2.3	Billing Records that include a per call or per minute charge (such as Audiotext services) that is greater than, or in addition to, the customary charge for the transmission of the
call; unless (a) Service Attachment 3, (Pay-Per-Call Billing Service) is made a part of this Agreement and (b) the Billing Records comply with the terms and conditions of this Agreement. All such Billing Records related to the provisioning
or use of Pay-Per-Call Billing Service must be submitted as a 900 NPA or other prefix or area code, or NY NPA with NXX call on an EMI Record Type 16 as set forth in Service Attachment 3 or such calls shall be considered prohibited charges under
Section 3.2.3, Section 3.2.4 or Section 3.2.5 and shall be grounds for immediate termination of this Agreement. 

  

	 	3.2.4	Billing Records that were initiated through a toll free record type service access code (800, 888, 877, etc.) and result in a charge to the originator of that call upon call
completion or call forwarding or call back for the purposes of circumventing Verizon’s Bill Block, Toll Block or Pay-Per-Call Block services or other prohibitions set forth in this Agreement; 

  

	 	3.2.5	Billing Records where Verizon, in its sole and absolute discretion, believes that the purpose of the call is to circumvent the FCC’s 900 Number Rules; or

  

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	 	3.2.6	Billing Records for Calling Card, collect, or third number calls unless the Billing Telephone Number for such calls has been validated through a line information data base service
(LIDB) or such similar verification procedure. 

  

	 	3.2.7	Billing Records that contain unauthorized, misleading, or deceptive charges for products or services (See Attachment B Definitions - “Cramming”) or that are the result of
PIC change(s) that are not authorized by the End-User (See Attachment B Definitions - “Slamming”). 

  

	3.3	Idearc represents and warrants that it shall NOT submit Billing Records to Verizon that contain charges for material deemed objectionable by Verizon, in its sole and
absolute discretion, including, without limitation, any of the following: 

  

	 	3.3.1	Material that explicitly or implicitly refers to sexual conduct, or invites, describes, stimulates, excites, arouses or otherwise refers to sexual conduct or sexual innuendoes;

  

	 	3.3.2	Material that contains indecent, obscene, or profane language; 

  

	 	3.3.3	Material that alludes to bigotry, racism, sexism, or other forms of discrimination; 

  

	 	3.3.4	Material that through marketing, advertising, content, or delivery is deceptive, misleading, unclear, or that may take unfair advantage of the elderly, minors or the general public;

  

	 	3.3.5	Material that is prohibited by Applicable Law; 

  

	 	3.3.6	Material that reflects negatively upon Verizon; 

  

	 	3.3.7	Material that results in an unacceptable level of End-User complaints as determined by Verizon in its sole discretion; or 

  

	 	3.3.8	Material that Verizon deems unacceptable, inappropriate or objectionable. 

  

	3.4	Idearc represents and warrants that it will not suggest, recommend, counsel or advise any person on procedures or methods for circumventing Pay-Per-Call Block, Bill Block, or Toll
Block services directly or through advertising or other direct or indirect contact with End-Users. 

  

	3.5	Idearc represents and warrants that it will not provide Verizon with any false or misleading information under this Agreement or any Attachment or Service Attachment, including but
not limited to, any information regarding any CIC, ABEC, ACNA or Sub-CIC if Idearc knew or should have reasonably known of the false or misleading nature of the information at the time Idearc submits billing records to Verizon.

  

	3.6	Verizon reserves the right to immediately terminate this Agreement or any CIC or Sub-CIC, without the right to cure, upon notice from any federal or state agency or governmental
body, including but not limited to, the FCC, FTC, US Department of Justice, FBI, US or state attorney general or state public utility commission that Sub-CIC or its management are under an investigation by that agency or governmental body. Further,
Idearc shall notify Verizon of any action or investigation taken by a governmental body relative to the foregoing. 

  

	3.7	 Idearc represents and warrants that, under the terms of service to its Idearc End-Users, it is authorized to impose late payment charges on amounts billed by
Verizon on its behalf. Idearc 

  

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authorizes Verizon to impose Verizon’s late payment charge on all such outstanding amounts which remain unpaid at the time the next Verizon bill is
rendered, or at such other time of imposition as may be determined by Verizon. 

  

	3.8	Idearc represents and warrants that all Billing Records that it sends for billing shall be accurate as to date, call and record type, call length, calling number, and called number,
and shall be in the format(s) specified in the applicable Service Attachment and/or by Applicable Law. 

  

	3.9	Idearc represents and warrants they shall maintain the telephone number for End-User Contact Referrals shown in Attachment D, provide, or require that Sub-CICs provide, adequate
customer service personnel during Idearc’ specified business hours, that End-User inquiries and customer complaints will be resolved in a reasonable, responsive manner, and expeditious manner, including but not limited to a description of
services. All End-User bills shall contain a toll free number answered by a live person during normal business hours that can answer all questions regarding the information on the End-User’s bill as well as provide information regarding the
End-User’s account with the Sub-CIC. 

  

	3.10	Idearc represents and warrants its compliance with all regulatory requirements in all Verizon Billing Regions for which Verizon provides Services on Idearc’s behalf.

  

	3.11	Idearc represents and warrants that all notices required under Applicable Law relating to Billing Records shall be sent in a timely manner. 

  

	3.12.	Idearc represents and warrants that it will screen and remove from Idearc record billing files submitted to Verizon, all billing records that do not comply with the requirements of
Section 3. 

  

	3.13	In the event Idearc submits Billing Records in violation of Section 3, hereof, Verizon in its sole discretion may reject the Billing Records not yet billed or, if already
billed, return the Billing Records to Idearc without further obligation on Verizon’s part including the right to refuse to bill for and accept the billing records of any Sub-CIC that generates excessive numbers of Complaints (defined in
Attachment B) as set forth in Attachment F. 

  

	3.14	In addition to the termination rights and other remedies provided elsewhere in this Agreement, Verizon shall have the right to stop Services for any CIC, ACNA, ABEC or Sub-CIC for
violations of Section 3. 

 Section 4 – Carrier Identification Codes 
  

	4.1	Verizon shall treat each of Idearc’s CICs, ACNAs or ABECs as a separate set of Services, according to list of Services as set forth in Section 1.3. Idearc may add or
delete CICs, ACNAs or ABECs upon ninety (90) days written notice to Verizon, without amendment to this Agreement. 

  

	4.2	Verizon will administer and provide separate PAR reports and Ancillary Bills for each of Idearc’s CICs, ACNAs and/or ABECs. 

  

	4.3	 Idearc represents and warrants that it will perform due diligence, on a continuing basis, of all Sub-CICs for which it submits records to Verizon to determine
Sub-CIC compliance with Section 3. Furthermore, Idearc shall conduct due-diligence on an ongoing basis to determine whether any new Sub-CIC for which Idearc submits Billing Records is associated with a Sub-CIC, or the management of the Sub-CIC
that Verizon has requested Idearc terminate. Idearc shall immediately report the identity of any such Sub-CIC and shall, upon Verizon’s request, terminate such Sub-CIC at Verizon’s sole discretion. Idearc shall provide, at a minimum, the

  

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following information regarding each Sub-CIC and update the information from time to time as applicable: 

  

	 	4.3.1	Corporate name 

  

	 	4.3.2	Address and phone 

  

	 	4.3.3	Names of all offices/principal management 

  

	 	4.3.4	Background and history of officers/principal management 

 Section 5 - Term and Termination 
  

	5.1	Term 

  

	 	5.1.1	This Agreement shall remain in full force and effect for a period of three (3) years from the Effective Date (“Term”) with a one (1) year renewal term, unless
otherwise terminated pursuant to the provisions contained in this Agreement. 

  

	 	5.1.2	With regard to California, this Agreement will not expire on the expiration date but will be automatically extended for a period if both Parties wish to enter into a new Agreement:
(1) Ninety (90) Days from the expiration date or (2) until a new Agreement has been executed by the Parties, and filed and approved by an appropriate state regulatory agency. 

  

	 	5.1.3	The Term shall not be extended, expanded or renewed other than as defined in Sections 5.1.1 and 5.1.2 of this Agreement without amendment by the Parties. 

 

	5.2	Termination by Verizon 

  

	 	5.2.1	Verizon shall have the right to terminate this Agreement for cause upon the occurrence of an Event of Default, including: 

  

	 	5.2.1.1	A continuing and uncured material breach of the terms of this Agreement by Idearc or any Sub-CIC; 

  

	 	5.2.1.2	The filing for bankruptcy protection; insolvency; an assignment for the benefit of creditors; the refusal or inability to pay debts as they mature; or the appointment of a trustee
or receiver for all or a substantial portion of Idearc’s assets; 

  

	 	5.2.1.3	A breach by Idearc or any Sub-CIC of any of the representations and warranties set forth in Section 3; 

  

	 	5.2.1.4	An excessive number of requests by Verizon to Idearc to deny Services to Idearc’s Sub-CICs due to excessive Cramming/Slamming Complaints as set forth in Attachment F.

  

	 	5.2.1.5	A change of control of Idearc defined as any transfer, sale or disposition in any manner of greater than 25% of: (1) the capital or voting stock or securities of Idearc as a
block; or (2) the composition of the board of directors or management of the company; or (3) the assets of Idearc not done in the ordinary course of business and without Verizon’s written consent. 

  

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	 	5.2.2	Notice and Cure Period 

  

	 	5.2.2.1	Verizon shall give Idearc written notice of the occurrence of an Event of Default. Except as otherwise set forth herein, Idearc shall have thirty (30) Days from the date of
such notice to cure the Event of Default. If the breach is not for the payment of money and is not physically capable of being cured within such thirty (30) Day period, Idearc shall submit a written plan within ten (10) Days to cure such
breach. The plan must include the steps to be taken by Idearc to remedy such breach. The breach must be cured no later than sixty (60) Days after the receipt of Verizon’s notice of an Event of Default. If a breach is not cured within the
thirty (30) Day period or (within sixty (60) Days for breaches not capable of being cured within thirty (30) Days), Verizon may, at its sole option, terminate this Agreement. Verizon shall be entitled to pursue all available remedies
for such breach, including the remedies listed in Section 5.2.3. 

  

	 	5.2.3	Remedies 

  

	 	5.2.3.1	In the event that Idearc fails to cure the Event of Default as set forth in Section 5.2.2.1, Verizon is entitled to any or all of the following: 

  

	 	5.2.3.1.1	Terminate this Agreement upon ten (10) Days written notice to Idearc; 

  

	 	5.2.3.1.2	Recover from Idearc the cost of system development and installation, less the net salvage value of equipment and material either ordered, provided, or installed, plus any
non-recoverable costs of system development and installation (including, but not limited to reinstatement of software, removal of system code, etc.) not to exceed the total development costs authorized in writing by Idearc and not previously paid;
and 

  

	 	5.2.3.1.3	Recover from Idearc the Minimum Monthly Charge, as set forth in Attachment E, multiplied by the number of months remaining in the Term, following the last month Services are
rendered. 

  

	5.3	Termination by Idearc 

  

	 	5.3.1	Idearc shall have the right to terminate this Agreement for cause upon the occurrence of an Event of Default, including: 

  

	 	5.3.1.1	A continuing and uncured material breach of the terms of this Agreement by Verizon (as set forth in Section 5.3.2 herein); 

  

	 	5.3.1.2	The filing for bankruptcy protection; insolvency; an assignment for the benefit of creditors; the refusal or inability to pay debts as they mature; or the appointment of a trustee
or receiver for all or a substantial portion of Verizon’s assets; 

  

	 	5.3.1.3	A breach of any of the representations and reservations set forth in Section 8; 

  

	 	5.3.2	Notice and Cure Period 

  

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	 	5.3.2.1 	Idearc shall give Verizon written notice of the occurrence of an Event of Default. Except as otherwise set forth herein, Verizon shall have thirty (30) Days from the date of
such notice to cure the Event of Default. If the breach is not for the payment of money and is not physically capable of being cured within such thirty (30) Day period, Verizon shall submit a written plan within ten (10) Days to cure such
breach. The plan must include the steps to be taken by Verizon to remedy such breach. The breach must be cured no later than sixty (60) Days after the receipt of notice. If a breach is not cured within the thirty (30) Day period or (within
sixty (60) Days for breaches not capable of being cured within thirty (30) Days), Idearc may, at its sole option, terminate this Agreement. Idearc shall be entitled to pursue all available remedies for such breach, including the remedies
listed in Section 5.3.3.1. 

  

	 	5.3.3 	Remedies 

  

	 	5.3.3.1 	In the event that Verizon fails to cure the Event of Default as set forth in Sections 5.3.2.1, Idearc is entitled to any or all of the following: 

  

	 	5.3.3.1.1 	Termination of this Agreement upon ten (10) Days written notice to Verizon. 

  

	 	5.3.3.1.2 	Recovery of a pro-rated refund of amounts paid, or credits for amounts due, as the case may be, to Verizon for the development of systems and procedures. This amount shall be
calculated by dividing the total number of months remaining in the Term following the last month Services are rendered, by the total number of months in the Term and multiplying that result by the total actual development costs arising under this
Agreement. 

  

	5.4	Termination without Cause 

  

	 	5.4.1 	Either Party may terminate this Agreement for any reason upon one hundred eighty (180) Days prior written notice. 

  

	 	5.4.2 	If Verizon raises its rates or charges set forth in Attachment E, Idearc may terminate this Agreement upon ninety (90) Days prior written notice to Verizon.

  

	 	5.4.3 	In the event Verizon’s ability to provide the Services in the manner and under the terms set forth in this Agreement is prevented or substantially impaired by a Force Majeure
(as defined in Section 25 herein), either Party may terminate this Agreement or any affected Service Attachment upon sixty (60) Days prior written notice to the other Party. 

  

	5.5	In the event of termination for any reason, Verizon shall be entitled to a return of its Purchase of Account Receivables (PARS) for any unbillable, uncollectible and Adjustment
amounts that may be due and owing or that may accrue after termination. 

  

	5.6	Termination of this Agreement will not terminate Services that are offered pursuant to tariff in applicable jurisdictions. 

  

	5.7	The rights and obligations set forth in this Section 5 shall survive the termination of this Agreement. 

  

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 Section 6 - End-User Denial and Blocking of Service 
  

	6.1	Idearc authorizes Verizon to disconnect End-User service for nonpayment in accordance with Applicable Law, and Verizon Policy, as may be modified from time to time.

  

	6.2	Verizon reserves the right to install Toll Blocking (blocking all outgoing toll calls), Pay-Per-Call Blocking (blocking all 900 numbers) or Bill Block (blocking billing of
Miscellaneous Service Billing Records from service providers other than Verizon or the End-User’s PIC) on an End-User’s line at the End-User’s request or in accordance with Verizon Policy, system capability and Applicable Law.

 Section 7 - Confidentiality and Non-Disclosure 
  

	7.1	All Proprietary Information disclosed by either Party during negotiations or during the Term of this Agreement shall be protected by the other Party in accordance with the terms of
this Section 7. 

  

	7.2	The term “Proprietary Information” includes but is not limited to, all written, recorded, and machine-readable information, such as End-User information as set forth in
Attachment C, Idearc system or new product specifications, and examinations or other information provided in tangible form to one Party by the other Party. All Proprietary Information must be marked as proprietary and/or confidential with the
appropriate owner name, e.g., “Verizon Proprietary”, except that machine readable information shall be considered Proprietary without marking. Information disclosed orally shall not be considered to be Proprietary Information unless such
information is reduced to writing by the providing Party and a copy is delivered to the receiving Party within thirty (30) Days after such oral disclosure. This writing shall also state the place and date of the disclosure, and the persons to
whom the disclosure was made. 

  

	7.3	The receiving Party shall not be liable for inadvertent or accidental disclosure of Proprietary Information of the other Party provided that it uses at least the same degree of care
in safeguarding such Proprietary Information as it uses for its own proprietary information of like importance that shall be reasonably calculated to prevent such inadvertent disclosure. 

  

	7.4	Information shall not be deemed to be Proprietary Information and the receiving Party shall have no obligation with respect to any information which: 

  

	 	7.4.1	Is or becomes publicly known through no wrongful act, fault or negligence of the receiving Party; 

  

	 	7.4.2	Was lawfully obtained by the receiving Party or by any other affiliate or subsidiary of the receiving Party prior to disclosure without obligation of confidentiality, except for any
information related by and among the parties in the course of negotiating this Agreement, or is at any time developed by the receiving Party independently of any such disclosure; 

  

	 	7.4.3	Was disclosed to the receiving Party by a third party who was free of obligations of confidentiality to the Party providing the information or is furnished to a third party by the
disclosing Party without a similar restriction on the third party’s rights; 

  

	 	7.4.4	Is approved for release by written authorization of the disclosing Party; 

  

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	 	7.4.5	Is disclosed pursuant to a requirement or request of a governmental agency or regulator or if disclosure is required by Applicable Law. 

  

	7.5	Neither Party is responsible or liable for any business decisions made by the other in reliance upon any disclosures made during any meeting between the Parties or during the course
of negotiations. The furnishing by either Party of Proprietary Information to the other shall not obligate either Party to enter into any further agreement or negotiation with the other. 

  

	7.6	Nothing contained in this Agreement shall be construed as granting to a Party a license, either express or implied, under any patent, copyright, or trademark, now or hereafter
owned, obtained, controlled by, or which is or may be licensable by, the other Party. 

  

	7.7	Unless otherwise agreed upon, neither Party shall publish or use the other Party’s name, language, pictures, or symbols from which the other Party’s name may be reasonably
inferred or implied in any advertising, promotion, or any other publicity matter relating directly or indirectly to this Agreement. All publicity regarding this Agreement is subject to the Parties’ prior written consent.

  

	7.8	In the event that this Agreement is required to be disclosed pursuant to Section 7.4.5, the Parties agree to seek commercial confidential status for this Agreement to the
extent such a designation can be secured. 

  

	7.9	The obligations set forth in this Section 7 shall survive the termination of this Agreement. 

  

	7.10	Upon expiration or termination of this Agreement, the receiving party shall, upon request and to the extent not prohibited by Applicable Law or regulation, return or destroy all
Proprietary Information of the disclosing Party that is in tangible or machine-readable form in its possession at the time of such expiration or termination. 

 Section 8 - Verizon Reservations 
  

	8.1	Verizon reserves the right to change its standard bill format(s). Verizon shall use reasonable efforts to notify Idearc of any substantial bill format(s) changes that will affect
Idearc’s billing system thirty (30) Days prior to such change. 

  

	8.2	Verizon reserves the right to modify or replace its billing systems. Verizon shall use reasonable efforts to provide Idearc ninety (90) Days written notice of such changes.
Idearc understands and agrees that as used herein, the term “billing systems” shall refer solely to the protocol that Verizon employs in tandem with the particular transmission medium used by Idearc that enables Verizon to read and process
Idearc’s data as detailed in the Service Attachments set forth herein. Such term shall not include other procedures, Policies or methods which Verizon expressly reserves the right to change from time to time without notice.

  

	8.3	To the extent that any of the Attachments or Policies are in conflict with the Principal Agreement, the Principal Agreement shall prevail. To the extent that any of the Policies are
in conflict with the Attachments the Policies shall prevail. 

  

	8.4	 Verizon reserves the right to increase its rates and charges as set forth in Attachment E upon ninety (90) Days written notice but shall not increase its rates
and charges more than once every twelve (12) calendar months during the term of this Agreement; provided, however, that Idearc shall have the right to terminate this Agreement in accordance with Section 5.4.2. If Verizon increases its
rates during an annual billing period and after Idearc has provided their 

  

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bill volume guarantee, Idearc may request to change their bill volume guarantee. The new bill volume guarantee will be effective for twelve (12) months
and start on the first day of the next month following receipt of Idearc’s new bill volume guarantee sent to Verizon’s account manager in writing. 

  

	8.5	Notwithstanding anything contained herein to the contrary, Verizon reserves the right to deduct from the sums due Idearc any amounts owed by Idearc to Verizon, where the amounts are
past due and have not yet been paid. 

 Section 9 - Purchase of Accounts Receivable and Settlements 
  

	9.1	Verizon shall purchase accounts receivable for Accepted Billing Records from Idearc. The amount due Idearc shall be the dollar amount of the Accepted Billing Records on a per
transmission basis, subject to the edits, Adjustments and procedures set forth in Verizon Policies. 

  

	9.2	In the event of Agreement expiration or termination, with or without cause, Verizon may withhold payment of any amount for PARs or other amounts owed to Idearc, until such time as
Verizon is fully satisfied and that there are no outstanding financial obligations owed by the Idearc to Verizon. 

  

	9.3	Verizon shall purchase accounts receivable from Idearc on a monthly basis. The settlement date, i.e. actual cash flow to Idearc, shall be in accordance with the “Payment Date
Calculation” procedure described in Verizon Policies. 

 Section 10 - Deposits and Reserves 
  

	10.1	Deposits 

 Verizon may, at its discretion, require a
non-interest bearing deposit from Idearc any time during the term of this Agreement (“Deposit”). Upon termination of service, Verizon may use the Deposit to offset any future debts, Adjustments and shortfalls in PARs for a period up to one
year. Any portion of the Deposit remaining after all of Idearc’s debts, Adjustments and shortfalls have been fully satisfied will be returned ninety (90) days after the end of the one-year period. 
  

	10.2	Reserves 

 Verizon shall have the right to retain PARs due
to Idearc for Negative PARs, Adjustments, or Uncollectible reserves due Idearc until Verizon is fully compensated as set forth in the Verizon Policies. 
 Section 11 - Payment for Services Rendered 
  

	11.1	Idearc agrees to pay to Verizon the rates and charges for Service rendered as set forth in Attachment E, as modified from time to time pursuant to Section 8.4 hereof.

  

	11.2	Verizon shall bill Idearc for Services rendered in accordance with this Agreement on a monthly basis. Each invoice shall be for a period of approximately thirty (30) Days.
Verizon reserves the right to bill Idearc for services within two (2) years of the rendering of services. 

  

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	11.3	Idearc agrees to pay the full invoiced amount or, in the event that an amount is in dispute, submit a written request for review of the disputed portion of the bill by the payment
due date of the invoice to the contact designated in Attachment D. If Idearc fails to pay or submit a request for review of a disputed billing procedure by the payment due date, late payment charges shall be assessed as set forth in Section 13.

  

	11.4	The payment due date for each invoice shall be determined by adding thirty (30) Days to the invoice preparation date. Verizon shall use diligent efforts to distribute the
invoice on the invoice preparation date. 

  

	11.5	If the payment due date of the invoice causes such payment to be due on a Saturday, Sunday, or Federal Banking Holiday, payment for the amount due Verizon shall be made as follows:

  

	 	11.5.1	If such payment due date falls on a Sunday or Federal Banking Holiday that is observed on a Monday, the payment date shall be the next Business Day. 

  

	 	11.5.2	If such payment due date falls on a Saturday or a Federal Banking Holiday is observed on a Tuesday, Wednesday, Thursday, or Friday, the payment date shall be the last Business Day
preceding such Saturday or Federal Banking Holiday. 

  

	11.6	In the event that the Agreement is terminated pursuant to Section 5 hereof, or Idearc fails to pay amounts that are undisputed and owing within thirty (30) Days of the
invoice preparation date, Verizon, without limiting any other rights it may have, may net any undisputed amounts due by Idearc to Verizon against the PAR amounts due Idearc under this Agreement. This Section 11 shall survive the termination or
expiration of this Agreement. 

 Section 12 - Minimum Charges 
  

	12.1	If total amounts incurred by Idearc for Services rendered in any month are less than the Minimum Monthly Charge per Verizon Billing Region per month as set forth in Attachment E,
even if no Billing Records are submitted to Verizon, Verizon shall bill and Idearc shall pay such Minimum Monthly Charge amounts. Such Minimum Monthly Charge amounts shall be due and owing regardless of whether Idearc admits insolvency, makes an
assignment for the benefit of creditors, is unable to pay debts as they mature, or has a trustee or receiver appointed over all or a substantial portion of its assets. A separate Minimum Monthly Charge applies for each Verizon Billing Region as set
forth in Attachment E. 

 Section 13 - Late Payment Charge 
  

	13.1	Subject to Section 13.3, any amount not received by the payment due date shall be subject to a late payment charge unless otherwise specified by tariff or Applicable Law. The
late payment charge shall be the balance overdue multiplied by the lesser of: 

  

	 	13.1.1	The highest interest rate (in decimal value) allowed by Applicable Law, for the number of Days from the Day following the payment due date up to and including the date payment is
actually made; or 

  

	 	13.1.2	Twelve per cent (12%) per annum simple interest for the number of Days from the Day following the payment due date up to and including the date payment is actually made.

  

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	13.2	Late payment charges shall not be levied on disputed amounts until resolution. If the Claim is resolved in Verizon’s favor, Idearc shall pay the late payment charges on the
disputed amounts previously deducted. If the Claim is resolved in Idearc’s favor, and Idearc has already paid the amount in dispute including any late payment charges, Idearc shall be entitled to interest on the excess amounts already paid to
Verizon using the applicable interest rate set forth in Section 13.1. 

  

	13.3	Late payment charges are not applicable to late payments caused by bank or third party errors; rather, the banks or other third parties involved shall resolve the discrepancy. The
Parties shall notify the banks or third parties involved and coordinate resolution. 

  

	13.4	Late payment charges shall be included in a subsequent settlement statement, but shall be excluded in calculating new late payment charges. 

 Section 14 - Transfer of Funds 
  

	14.1	Any payment by either Party to the other Party may be paid by check, draft, or electronic funds transfer to the payee’s address. Late payment charge as set forth in
Section 13 shall be due the payee if any portion of an amount due is in funds that are not immediately available to the payee. 

  

	14.2	Where the Parties have made arrangements for a bank or other third party to remit funds to the other, proper identification of the bank or third party, including the account number,
shall be furnished. The remitting Party shall cooperate in correcting any bank or other third party errors and shall not be relieved of its payment responsibilities because of such errors. 

 Section 15 - Examination 
  

	15.1	Upon sixty (60) Days written notice either Party may request an examination of the other Party (an “Examination”). With respect to an Examination of Verizon by
Idearc, a review of Verizon’s records shall be limited to records and procedures containing information bearing upon: (a) amounts being billed to End-Users by Verizon as part of its provision of Services; and (b) charges to Idearc for
Services provided by Verizon pursuant to this Agreement; and (c) customer Inquiries or Complaints. With respect to an Examination of Idearc by Verizon, a review of Idearc’s records shall be limited to records and procedures containing
information bearing upon customer contact policies and procedures, customer Complaint records and procedures, record screening and formatting procedures, and transmission procedures. The Examination shall be conducted during normal business hours
without interference with either Party’s business operations and in compliance with that Party’s security procedures. Either Party may request a maximum of one (1) Examination per eighteen (18) month period.

  

	15.2	The Parties shall mutually agree on an estimated commencement date, estimated duration, location, subject matter, and the materials to be examined. 

  

	15.3	Each Party shall bear its own expenses in connection with the conduct of an Examination. Special Data Extractions required by Idearc to conduct the Examination shall be paid for by
Idearc, and ordered using the Change Request Process outlined in Verizon’s Policies. 

  

	15.4	 Either Party’s materials reviewed by the other Party in the course of an Examination shall constitute Proprietary Information and their use shall be limited to
the conduct of the Examination and preparation of a report for appropriate distribution Idearc to those with a need to know the results of the Examination. Both Parties reserve the right to require that the 

  

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Examination or any portion thereof be conducted by an independent third party to be mutually agreed upon in good faith by the Parties. The Parties also agree
that the third party will not divulge any Proprietary Information not associated with Idearc’s billing. Both Parties agree to provide a copy of Section 7 of this Agreement to employees and or agents acting on its behalf and to require
their compliance with its provisions. 

 Section 16 - Taxes 
  

	16.1	Tax applications and procedures are set forth in Attachment H. 

 Section 17 - Resolution of Claims in the Ordinary Course of Business 
  

	17.1	Claims made for accounts receivable or payable between the Parties of less than $25,000 arising from the ordinary course of business (“Claims in the Ordinary Course”)
shall be resolved pursuant to the procedures set forth in Attachment G. 

 Section 18 - Claims Limitation 
  

	18.1	Idearc shall submit Claims for Services not later than two (2) years of the bill date unless otherwise provided by tariff or Applicable Law. Service is considered rendered when
the PAR report is submitted to Idearc. No Claims may be made under this Agreement or referred to the dispute resolution procedures set forth in Section 19 more than two (2) years after the bill date of the Ancillary Bill or the PAR report
date. Failure to make such Claim within two (2) years shall bar any course of action before a judicial or regulatory body unless otherwise provided by tariff or Applicable Law. Claims for indemnity under this Agreement shall not be limited by
the two (2) year limitation provided, but shall be governed by the appropriate statute of limitation. 

  

	18.2	In no event shall Claims exceed the limitations set forth in Section 21. 

 Section 19 - Dispute Resolution 
  

	19.1	Verizon and Idearc shall cooperate with and assist each other in promptly identifying and correcting problems arising out of Verizon’s provision of Services to Idearc under
this Agreement. The Parties recognize that despite the best efforts of both Parties, from time to time errors will occur in the billing process. In such cases, the Parties agree to fully cooperate in joint efforts, including the exchange of data to
minimize billing disruptions as soon as possible. Each Party will bear its own costs incurred in connection with the above recovery activities. 

  

	19.2	Disputes between the Parties resulting from Claims that exceed $25,000 and have not been resolved using the procedures set forth in Attachment G, or any other claim or controversy
concerning the terms and conditions of this Agreement, except for actions filed to enforce this Section 19 or to obtain injunctive relief or any subject matter referenced or governed hereby, will be resolved by the Parties using the following
dispute resolution procedure as their sole remedy. 

  

	19.3	 At the written request of a Party, each Party shall appoint a knowledgeable, responsible non-lawyer business representative with the authority to act on behalf of
each Party, to meet and negotiate in good faith to resolve any dispute arising under this Agreement. The location, format, frequency, duration, and conclusion of these discussions shall be left to the discretion 

  

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of the representatives. Upon agreement, the representatives may utilize other alternative dispute resolution procedures such as mediation to assist in the
negotiations. Discussions and correspondence among the representatives for purposes of these negotiations shall be treated as confidential information developed for purposes of settlement, exempt from discovery and production which shall not be used
in the arbitration described below without the agreement of both Parties. If the negotiations do not resolve the dispute within sixty (60) Days of the initial written request for negotiation, a party may request that the controversy or Claim be
resolved by final, binding arbitration in accordance with the American Arbitration Association (AAA) Rules for Arbitration of Disputes. A single neutral arbitrator licensed to practice law, preferably with telecommunication experience, shall conduct
the arbitration. The arbitrator shall conduct the arbitration using and applying the Federal Rules of Evidence and the Federal Rules of Civil Procedure excluding the rules concerning discovery. The arbitration will be governed by the Federal
Arbitration Act. 9 U.S.C. §§1-16, to the exclusion of any provision of state law inconsistent there with or which would produce a different result. 

  

	19.4	The arbitrator shall rule on the dispute by issuing a written opinion within thirty (30) Days after the close of hearings. The arbitration will constitute the sole and final
non-appealable method of dispute resolution of all claims arising out of this Agreement. Judgment upon the award rendered by the arbitrator may be entered in any court of competent jurisdiction. 

  

	19.5	The arbitrator shall have the discretion to award costs and attorney fees at the conclusion of the arbitration proceedings. 

 Section 20 - Indemnity 
  

	20.1	Indemnification of Verizon 

 Idearc, as the indemnifying
Party, will indemnify, defend and hold harmless Verizon, as the indemnified Party, from and against all costs, claims, liabilities, damages, settlements, awards, and expenses whatsoever (including reasonable attorneys’ fees and costs related to
the defense of the foregoing), resulting from third party claims related to Idearc’s duties and obligations under this Agreement or Idearc’s provision of telecommunications and information related services to End-Users and other Idearc
customers concerning the Services provided hereunder. 
  

	 	20.1.1	Verizon, as the indemnified Party, will notify Idearc, the indemnifying Party promptly, in writing of any written claims, lawsuits or demands by third Parties for which Verizon, as
the indemnified Party, alleges that Idearc as indemnifying Party is responsible under this Section and will tender the defense of such claim to Idearc. Upon tender, Verizon, as indemnified Party, shall have the right to have its own attorneys
present in any proceedings, but Verizon shall have no right to enter into or make any settlement offers, demands or counterclaims of any nature. Idearc, as indemnifying Party, shall not be responsible for any settlement offers or actual settlements
made by Verizon, as indemnified Party, without the written consent of Idearc. 

  

	 	20.1.2	In the event that Idearc, as indemnifying Party, after receiving written tender of such claim, takes no action to defend such claim within a reasonable time, Verizon, as the
indemnified Party, may assume the defense of the claim but shall not in any way waive its right to recover all costs, claims, liabilities, damages, settlements, awards, expenses, attorneys fees and any other liability resulting there from. Verizon,
as the indemnified Party, shall have the right to recover all expenses (including reasonable attorneys’ fees) in any action undertaken to enforce this indemnity obligation. 

  

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	20.2	Indemnification of Idearc 

 Verizon, as the indemnifying
Party, will indemnify, defend and hold harmless Idearc, as indemnified Party, from and against all costs, claims, liabilities, damages, settlements, awards, and expenses whatsoever (including reasonable attorneys’ fees and costs related to the
defense of the foregoing), from third party claims brought against Idearc for loss or damage directly caused by Verizon’s failure to perform the Services requested by Idearc under this Agreement. 
  

	 	20.2.1	Idearc, as the indemnified Party, will notify Verizon, as the indemnifying Party, promptly, in writing of any written claims, lawsuits or demands by third parties for which Idearc,
as indemnified Party, allege that Verizon, as indemnifying Party, is responsible under this Section and will tender the defense of such claim to Verizon. Upon tender, Idearc, as indemnified Party, shall have the right to have its own attorneys
present in any proceedings, but Idearc, as indemnified Party, shall have no right to enter into or make any settlement offers, demands or counterclaims of any nature. Verizon, as indemnifying Party, shall not be responsible for any settlement offers
or actual settlements made by Idearc, as indemnified Party, without the written consent of Verizon. 

  

	 	20.2.2	In the event that Verizon, as the indemnifying Party, after receiving written tender of such claim, takes no action to defend such claim within a reasonable time, Idearc may assume
the defense of the claim but shall not in any way waive their right to recover for all costs, claims, liabilities, damages, settlements, awards, expenses, attorneys fees and any other liability resulting there from. Idearc, as the indemnified Party,
shall have the right to recover all expenses (including reasonable attorneys’ fees) in any action undertaken to enforce this indemnity obligation. 

  

	20.3	The provisions of this Section 20 shall survive the termination of this Agreement. 

 Section 21 - Limitation of Liability; Warranty 
  

	21.1	EXCEPT FOR THE INDEMNITIES PROVIDED IN SECTION 20 OF THIS AGREEMENT AND EXCEPT FOR AMOUNTS OWED TO VERIZON FOR PROVISION OF SERVICES HEREUNDER, IN NO EVENT SHALL DAMAGES FOR ALL
CLAIMS ARISING HEREUNDER, IN THE AGGREGATE, EXCEED THE TOTAL VALUE OF ANCILLARY BILL CHARGES FOR SERVICES RENDERED BY VERIZON UNDER THIS AGREEMENT FOR THE PRECEEDING TWELVE (12) MONTH PERIOD LESS CLAIMS PREVIOUSLY PAID DURING THE TERM.

  

	21.2	SUBJECT TO THE LIMITATION SET FORTH IN SECTION 21.1, AND EXCEPT FOR SECTION 9.6 OF SA1 AND SECTION 9.6 OF SA2, IF APPLICABLE, VERIZON’S LIABILITY TO IDEARC FOR ANY LOSS,
COST, DAMAGE, CLAIM, INJURY, LIABILITY, OR EXPENSE, INCLUDING REASONABLE ATTORNEYS’ FEES, RELATING TO OR ARISING OUT OF THE SERVICES PROVIDED HEREUNDER SHALL BE LIMITED TO THE ANCILLARY BILL CHARGES PAID BY IDEARC FOR VERIZON’S PROVISION
OF SUCH SERVICES. MOREOVER, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE RESPONSIBLE OR LIABLE FOR INCIDENTAL, SPECIAL, LOST PROFITS, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY KIND, NOTWITHSTANDING THEIR FORESEEABILITY OR DISCLOSURE BY EITHER PARTY
OF SUCH DAMAGES. THIS LIMITATION SHALL NOT AFFECT THE OBLIGATIONS OF THE PARTIES REGARDING INDEMNIFICATION SET FORTH IN SECTION 20 HEREOF. 

  

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	21.3	VERIZON HEREBY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AND MAKES NO WARRANTIES, WITH RESPECT TO THE SERVICES PROVIDED HEREUNDER, INCLUDING, WITHOUT
LIMITATION, THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

  

	21.4	THIS SECTION 21 SHALL SURVIVE TERMINATION OR EXPIRATION OF THIS AGREEMENT. 

 Section 22 - Independent Contractors 
  

	22.1	Each Party is engaged in a business that is independent of the other Party and each Party shall perform its obligations under this Agreement as an independent contractor. No Party
has control or the discretion to exercise control over the employees or agents of the other and no employer/employee relationship exists, or is intended to exist, between the Parties. Each Party will be solely responsible for all matters relating to
payment of such employees, including compliance with social security Taxes, withholding Taxes, and all other regulations governing such matters. Each Party will be responsible for its own acts and those of its own subordinates, employees, agents,
and subcontractors during the performance of that Party’s obligations hereunder. 

 Section 23 - Remedies Cumulative

  

	23.1	Except as otherwise provided in this Agreement, all rights of termination, cancellation, or other remedies in this Agreement are cumulative. Use of any remedy shall not preclude any
other remedy in this Agreement. 

 Section 24 - Assignment 
  

	24.1	With the exception of collateral assignments, Idearc shall not assign this Agreement, in whole or in part, without the prior written consent of Verizon; provided, however, that
Idearc may assign all or part of its rights and obligations to a subsidiary or affiliate of Idearc without Verizon’s consent, but with written notification to Verizon. Any assignment in violation of this paragraph shall be void.

  

	24.2	Idearc shall notify Verizon in writing of a collateral assignment by Idearc. Verizon shall have no obligation to obtain consent from, or provide notice to, any lender of Idearc in
connection with an amendment to, or termination of, this Agreement. 

  

	24.3	The assignment of any right by Idearc under this Agreement shall not impact any of Verizon’s rights under Applicable Law, including the right of set-off.

  

	24.4	Verizon may assign this Agreement, in whole or in part, to a subsidiary or affiliate of Verizon. In addition, Verizon may assign this Agreement, in whole or in part, to any third
party in connection with the sale or other disposition of local exchange telephone franchises. 

  

	24.5	Verizon may use subcontractors, including, without limitation, Verizon Data Services Inc., to perform all or any portion of the Services. 

  

	24.6	All obligations and duties of any Party under this Agreement shall be binding on all successors in interest and assigns of such Party. 

  

	24.7	 Verizon may sell any Uncollectible account to third parties at such time as Verizon 

  

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determines that an Uncollectible account has aged to a point where collection activity is unlikely to result in any collection of the debt owed and a sale
could result in a financial recovery to Idearc of some percentage of the Uncollectible account. If any recovery is made from a sale of such Uncollectible accounts, Idearc will be compensated based on the total sales price times Idearc’s
calculated percentage of outstanding debt for the portfolio of Uncollectible accounts sold. The sale and payment to Idearc of its percentage of such recovery will be deemed to be payment in full to Idearc and satisfaction of any monies owed to
Idearc for such Uncollectible accounts without further obligation on the part of Verizon. 

 Section 25 - Force Majeure

  

	25.1	Neither Party shall be liable for any delay or failure in performance of any part of this Agreement from any cause beyond its control and without its fault or negligence, including
but not limited to acts of God, acts of civil or military authority, government regulations, embargoes, epidemics, war, terrorist acts, riots, insurrections, fires, explosions, earthquakes, nuclear accidents, floods, strikes, power blackouts,
unusually severe weather conditions, unavailability of equipment from vendors, common carriers or any other circumstances beyond the reasonable control of the Party affected (“Force Majeure Condition”). If any Force Majeure Condition
occurs, the Party delayed or unable to perform shall give immediate notice to the other Party. During the pendency of the Force Majeure Condition, the duties of the Parties under this Agreement affected by the Force Majeure Condition shall be abated
and shall resume without liability thereafter. 

 Section 26 - Severability 
  

	26.1	In the event that any one or more of the provisions shall for any reason be held to be unenforceable in any respect under Applicable Law, such unenforceability shall not affect any
other provision of this Agreement, but this Agreement shall be construed as if such unenforceable provision or provisions had never been contained. 

 Section 27 - Non-Exclusive Agreement 
  

	27.1	This Agreement is non-exclusive. Verizon reserves the right to extend to others the services provided for herein. Idearc reserves the right to obtain Services from persons or
entities other than Verizon. 

 Section 28 - Third-Party Beneficiaries 
  

	28.1	The provisions of this Agreement are for the benefit of the Parties and not for any other person. However, should any third party institute proceedings, this Agreement shall not
provide any such person with any remedy, Claim, liability, reimbursement, cause of action, or other right in excess of those provided in this Agreement. 

 Section 29 - Governing Law and Venue 
  

	29.1	Unless as otherwise expressly provided in this Agreement, this Agreement shall be deemed to be a contract made under the laws of the state of New York and subject to the exclusive
jurisdiction of the state and federal courts in and for New York. 

  

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 Section 30 - Multiple Counterparts 
  

	30.1	This Agreement may be executed in multiple counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same document.

 Section 31 - Headings 
  

	31.1	The headings and numbering of sections and paragraphs in the Agreement are for convenience only and shall not be construed to define or limit any of the terms or affect the meaning
or interpretation of this Agreement. 

 Section 32 - Attachments 
  

	32.1	The following Attachments are made part of this Agreement: 

 Attachment A - Verizon Telephone Operating Companies 
 Attachment B - Definition of Terms 
 Attachment C - Proprietary Billing Information 
 Attachment D - Contacts 
 Attachment E - Rates and Charges for Services 
 Attachment F - Complaint Control Process 
 Attachment G - Resolution of Claims in the Ordinary Course of Business 
 Attachment H - Taxes 
 Service Attachment 1     Message Ready Service 
 Service Attachment 2     Invoice Service 
 Service Attachment 5    
End-Users Communications Services 
 Service Attachment 7     Supplemental Services 
 Schedule 1                      Directory
Publishing Service 
  

	32.2	To the extent that any of the Attachments or Policies are in conflict with the Principal Agreement, the Principal Agreement shall prevail. To the extent that any of the Policies are
in conflict with the Attachments, the Policies shall prevail. 

 Section 33 - Entire Agreement 
  

	33.1	This Agreement, including all Attachments, constitutes the entire Agreement between the Parties and supersedes all prior or contemporaneous oral or written agreements,
representations, statements, negotiations, understandings, proposals and undertakings with respect to the subject matter of this Agreement. 

 Section 34 - Amendments and Waivers 
  

	34.1	No amendment, modification, or supplement to this Agreement shall be effective unless it: (a) is in writing and signed by the authorized representatives of both Parties, and
(b) by reference incorporates this Agreement and identifies the specific portions that are amended, modified, or supplemented or indicates that the material is new. The term “this Agreement” includes any future amendments,
modifications, and supplements. 

  

	34.2	No course of dealing or failure of any Party to strictly enforce any term, right or condition of this Agreement shall be construed as a waiver of such term, right or condition.

  

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	34.3	Waiver by either Party of any default by the other Party shall not be deemed a waiver of any other default. 

  

	34.4	No waiver of any provision or consent to default of any term shall be effective unless the same shall be in writing and signed by or on behalf of the Party against whom such waiver
or consent is claimed. 

 Section 35 - Construction 
  

	35.1	This Agreement and the provisions contained herein shall not be construed or interpreted for or against any Party because that Party drafted or caused its legal representative to
draft any of its provisions. 

 Section 36 - Execution 
  

	36.1	Each Party acknowledges that it has read this Agreement, that each fully understands its rights and obligations under this Agreement, and that it enters this Agreement freely and
voluntarily. Each Party further acknowledges that it has had an opportunity to consult with an attorney of its own choosing to explain the terms of this Agreement and the consequences of signing it. 

  

	36.2	Each person executing this Agreement for the respective Parties expressly represents and warrants that he or she has authority to bind the entity on whose behalf he or she has
executed this Agreement. 

 Section 37 - Notices and Demands 
  

	37.1	Except as otherwise provided under this Agreement, all notices, demands, or requests that may be given by any Party to the other Party shall be in writing and shall be deemed to
have been given on the date delivered in person, or sent via facsimile, telex, cable or electronic mail service used by Verizon and Idearc, next Business Day when mailed via commercial overnight delivery or on the third Business Day after deposit,
postage prepaid, in the United States Mail via certified mail, return receipt requested, and addressed as set forth in Attachment D. Notwithstanding the foregoing, the exclusive means of providing notice under Section 5 shall be by certified
mail or commercial overnight delivery. 

  

	37.2	If personal delivery is selected as the method of giving notice under this section, a receipt of such delivery shall be obtained. 

  

	37.3	The address to which such notices, demands, requests, elections, or other communications shall be delivered may be changed by written notice given by such Party to the other Party
pursuant to this section. 

  

	37.4	Idearc agrees to notification of End-Users by Verizon concerning the termination of the billing arrangements between Idearc and Verizon under this Agreement. Verizon will provide a
copy of any such End-User notice to Idearc. 

 Section 38 - Change Request Process 
  

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	38.1	Requests for changes or modifications to Verizon’s billing systems shall be submitted pursuant to the Change Request procedures set forth in Verizon’s Policies.

 Section 39 - No Common Principals 
  

	39.1	Idearc represents and warrants that Idearc does not, and will not at any time during the Term, have an officer, director, general partner, or holder of at least ten percent
(10%) of its ownership interest (any of the foregoing being referred to as a “Principal”) who is or has been a Principal of any entity that has entered into a billing and collection agreement with Verizon or any affiliate of Verizon
that has been terminated for cause by Verizon or any affiliate of Verizon. 

 Section 40 - Survival 
  

	40.1	Provisions contained in this Agreement that by their intent and context are intended to survive the performance, termination or cancellation of the Agreement by any Party hereto
will so survive. 

  

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 IN WITNESS WHEREOF, the Parties have executed this Agreement on the date or dates indicated below to be effective as of
the Effective Date. 
  

									
	 Idearc Media Corp.
	 		 	 Verizon Services Corp. on behalf of
 Verizon Telephone Operating Companies
 Listed on Attachment A

					
	 By:
	 	 /s/ Katherine J. Harless
	 		 	 By:
	 	 /s/ George S. Dowell

	 Name:
	 	 Katherine J. Harless
	 		 	 Name:
	 	 George S. Dowell

	 Title:
	 	 President
	 		 	 Title:
	 	 VP – Supply Chain Services

	 Date:
	 	 November 17, 2006
	 		 	 Date:
	 	 November 17, 2006

  

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 Confidential and ProprietaryEmployee Matters Agreement

 Exhibit 10.8 
 EXECUTION COPY 
 EMPLOYEE MATTERS AGREEMENT 
 by and between 
 Verizon Communications Inc. 
 and 
 Idearc Inc. 
 dated as of November 17, 2006 

 Table of Contents 
  

 
  

					
	 	  	 	  	Page
	ARTICLE I.	  	
		
	DEFINITIONS	  	
			
	 Section 1.1.
	  	Definitions	  	1
			
	 Section 1.2.
	  	Capitalized Terms	  	8
		
	ARTICLE II.	  	
		
	EMPLOYEES; ASSUMPTION OF LIABILITIES	  	
			
	 Section 2.1.
	  	Employees.	  	8
			
	 Section 2.2.
	  	Assumption of Liabilities.	  	9
			
	 Section 2.3.
	  	Reimbursement.	  	10
			
	 Section 2.4.
	  	Indemnification.	  	10
			
	 Section 2.5.
	  	Procedures for Indemnification for Third-Party Claims.	  	11
			
	 Section 2.6.
	  	Reductions for Insurance Proceeds and Other Amounts.	  	13
			
	 Section 2.7.
	  	Contribution.	  	13
			
	 Section 2.8.
	  	Consequential Damages	  	14
			
	 Section 2.9.
	  	Joint Defense and Cooperation	  	14
		
	ARTICLE III.	  	
		
	COLLECTIVE BARGAINING AGREEMENTS	  	
			
	 Section 3.1.
	  	Continuity and Performance of Agreements	  	14
		
	ARTICLE IV.	  	
		
	IDEARC PLANS GENERALLY	  	
			
	 Section 4.1.
	  	Establishment of Idearc Plans	  	14
			
	 Section 4.2.
	  	Terms of Participation by Idearc Individuals	  	15
			
	 Section 4.3.
	  	Transition Services	  	15

  

 i 

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page
	ARTICLE V.	  	
		
	HEALTH AND WELFARE	  	
			
	 Section 5.1.
	  	Assumption of Health and Welfare Plans.	  	16
			
	 Section 5.2.
	  	Adoption of Health and Welfare Plans.	  	16
			
	 Section 5.3.
	  	COBRA and HIPAA	  	17
			
	 Section 5.4.
	  	Workers’ Compensation Claims	  	18
			
	 Section 5.5.
	  	Leave of Absence Programs	  	18
			
	 Section 5.6.
	  	Time-Off Benefits	  	18
		
	ARTICLE VI.	  	
		
	PENSION PLANS	  	
			
	 Section 6.1.
	  	Split of Verizon Plans	  	18
			
	 Section 6.2.
	  	Establishment of Pension Plans and Trusts.	  	19
			
	 Section 6.3.
	  	Assumption of Pension Plan Liabilities and Allocation of Interests in the Verizon Pension Trusts.	  	19
			
	 Section 6.4.
	  	Continuation of Elections	  	22
		
	ARTICLE VII.	  	
		
	SAVINGS PLANS	  	
			
	 Section 7.1.
	  	Establishment of the Idearc Savings Plan	  	22
			
	 Section 7.2.
	  	Assumption of Liabilities and Transfer of Assets.	  	22
		
	ARTICLE VIII.	  	
		
	EQUITY BASED INCENTIVE AWARDS	  	
			
	 Section 8.1.
	  	General Treatment of Outstanding Awards	  	23
			
	 Section 8.2.
	  	Outstanding Options	  	23
			
	 Section 8.3.
	  	Treatment of Outstanding Verizon RSU and PSU Awards.	  	24

  

 ii 

 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page
	ARTICLE IX.	  	
		
	SHORT TERM INCENTIVES AND SALES COMMISSION PROGRAMS	  	
			
	 Section 9.1.
	  	Incentive and Commission Plans	  	25
		
	ARTICLE X.	  	
		
	DEFERRED COMPENSATION PLANS	  	
			
	 Section 10.1.
	  	Generally	  	25
			
	 Section 10.2.
	  	Vesting and Payout of Balances	  	25
		
	ARTICLE XI.	  	
		
	CERTAIN TAX MATTERS	  	
			
	 Section 11.1.
	  	Certain Tax Matters	  	26
		
	ARTICLE XII.	  	
		
	GENERAL AND ADMINISTRATIVE	  	
			
	 Section 12.1.
	  	Sharing of Information	  	26
			
	 Section 12.2.
	  	Cooperation	  	26
			
	 Section 12.3.
	  	Consent of Third Parties	  	26
			
	 Section 12.4.
	  	Survival	  	27
			
	 Section 12.5.
	  	Interpretation	  	27
			
	 Section 12.6.
	  	No Third Party Beneficiary.	  	27
			
	 Section 12.7.
	  	Notices	  	27
			
	 Section 12.8.
	  	Governing Law; Jurisdiction	  	29
			
	 Section 12.9.
	  	Waiver of Jury Trial	  	29
			
	 Section 12.10.
	  	Specific Performance	  	29
			
	 Section 12.11.
	  	No Assignment; No Amendment; Counterparts	  	29

  

 iii 

 Employee Matters Agreement 
 This Employee Matters Agreement (this “Agreement”), dated as of November 17, 2006 is by and between Verizon Communications Inc., a
Delaware Corporation (“Verizon”), and Idearc Inc., a Delaware Corporation (“Idearc” and together with Verizon, each a “Party” and collectively, the “Parties”), and effective as of
the Distribution Date. 
 WHEREAS, the Board of Directors of Verizon has determined that it is in the best interests of Verizon and its
stockholders to separate the Idearc business into an independent public company; 
 WHEREAS, in furtherance of the foregoing, Verizon has
announced its intention to distribute all of the shares of Idearc Common Stock to the holders of Verizon Common Stock; 
 WHEREAS, in
furtherance of the foregoing, Verizon and Idearc have entered into a Distribution Agreement, dated November 13, 2006 (the “Distribution Agreement”) that will govern the terms and conditions relating to the separation among
Verizon and Idearc; and 
 WHEREAS, pursuant to the Distribution Agreement, Verizon and Idearc have agreed to enter into this Agreement for
the purpose of allocating current and former employees and assets, liabilities, rights and responsibilities with respect to employee compensation and benefits and other employment matters. 
 NOW, THEREFORE, in consideration of the mutual promises contained herein and in the Distribution Agreement, the Parties agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 Section 1.1. Definitions 
 “2004 PSU” means any Performance Share Unit granted by Verizon in the 2004 calendar year. 
 “2005
PSU” means any Performance Share Unit granted by Verizon in the 2005 calendar year. 
 “2006 PSU” means any
Performance Share Unit granted by Verizon in the 2006 calendar year. 

 “Agreement” means this Employee Matters Agreement, and all exhibits, schedules,
appendices and annexes hereto. 
 “Benefit Payments” has the meaning ascribed to it in Section 6.3. 
 “Close of the Distribution Date” means 11:59:59 P.M., Eastern Standard Time or Eastern Daylight Time (whichever shall then be in
effect), on the Distribution Date. 
 “COBRA” has the meaning ascribed to it in Section 5.3. 
 “Code” means the United States Internal Revenue Code of 1986, as amended. 
 “Contribution” has the meaning ascribed to it in the Distribution Agreement. 
 “Delayed Transfer Employee” has the meaning ascribed to it in Section 2.1(b). 
 “Designated Idearc Subsidiary” has the meaning ascribed to it in Section 2.1(b). 
 “Distribution” has the meaning ascribed to it in the Distribution Agreement. 
 “Distribution Agreement” has the meaning ascribed to it in the third recital to this Agreement. 
 “Distribution Date” has the meaning ascribed to it in the Distribution Agreement. 
 “EDP” means the Verizon Executive Deferral Plan. 
 “Excess Plan” has the meaning ascribed to it in Section 6.1. 
 “Final Asset
Transfer” has the meaning ascribed to it in Section 6.3. 
 “Former VIS Employee” means any individual, other
than a VIS VMPP DVP, who as of the Close of the Distribution Date, is neither then actively employed by, nor then on an approved leave of absence or lay-off with right of recall from Verizon Group or Idearc Group and whose last employment has been
determined by Verizon to have been with the Spinco Business. “Former VIS Employee” shall also include the beneficiaries and dependents of such an individual. 
 “FRP” means the Verizon Flexible Reimbursement Plan. 
 “FRP Participants”
has the meaning set forth in Section 5.2(c). 
 “Governmental Authority” has the meaning set forth in the Distribution
Agreement. 
  

 2 

 “Idearc” means Idearc Inc. 
 “Idearc CBAs” has the meaning ascribed to it in Section 3.1. 
 “Idearc Common Stock” has the meaning ascribed to it in the Distribution Agreement. 
 “Idearc Employee” means any individual who, as of the Close of the Distribution Date, (i) is actively employed by, or on an
approved leave of absence including those individuals who are receiving long term disability benefits under the (Verizon long term disability plan) or lay-off with right of recall from the Verizon Group (including Represented Employees),
(ii) whose primary duties immediately prior to the Distribution Date (or such earlier date as Verizon shall determine with respect to such employee or any class of employees) were related to the Spinco Business and (iii) is not a Retained
Employee. “Idearc Employee” shall, as of the applicable Transfer Date, also include any Delayed Transfer Employee. “Idearc Employee” shall also include the beneficiaries and dependents of an individual described in the first
sentence of this definition or of a Delayed Transfer Employee. 
 “Idearc Excess Pension Plan” has the meaning given to it
in Section 6.1. 
 “Idearc FSA” has the meaning ascribed to it in Section 5.2(c). 
 “Idearc Group” means Idearc and the Idearc Subsidiaries. 
 “Idearc Indemnitees” means Idearc and each Affiliate of Idearc immediately after the Distribution and each of their respective present and former Representatives and each of the heirs, executors,
successors and assigns of any of the foregoing. 
 “Idearc Individual” means each Idearc Employee and each Former VIS
Employee. 
 “Idearc Liabilities” has the meaning set forth in the Distribution Agreement. 
 “Idearc Management Pension Plan” has the meaning ascribed to it in Section 6.1. 
 “Idearc Mirror Plans” means the Idearc Welfare Plans, the Idearc Union Pension Plan, the Idearc Management Pension Plan, the Idearc
Excess Pension Plan and, the Idearc Savings Plans. 
 “Idearc Pension Plans” mean the Idearc Management Pension Plan and the
Idearc Union Pension Plan. 
 “Idearc Plan” means any Plan maintained or sponsored by Idearc or any of its subsidiaries for
the benefit of any current or former employee of any such person. 
  

 3 

 “Idearc Savings Plan” has the meaning ascribed to it in Section 7.1. 
 “Idearc Subsidiaries” means all direct and indirect Subsidiaries of Idearc immediately after the Contribution. 
 “Idearc Trust” has the meaning ascribed to it in Section 6.3(c)(i). 
 “Idearc Union Pension Plan” has the meaning ascribed to it in Section 6.2. 
 “Idearc Welfare Plans” has the meaning ascribed to it in Section 5.2(a). 
 “IDP” means the Verizon Income Deferral Plan. 
 “Indemnifiable Losses” means all Losses, Liabilities, damages, claims, demands, judgments or settlements of any nature or kind, including all costs and expenses (legal, accounting or otherwise) that
are reasonably incurred relating thereto, suffered by an Indemnitee, including any costs or expenses of enforcing any indemnity hereunder that are reasonably incurred and all Taxes resulting from indemnification payments hereunder. 
 “Indemnifying Party” means a Person that is obligated under this Agreement to provide indemnification. 
 “Indemnitee” means a Person that may seek indemnification under this Agreement. 
 “Individual Agreement” means an individual employment contract or other similar agreement that specifically pertains to any Idearc
Individual. 
 “Initial Asset Transfer” has the meaning ascribed to it in Section 6.3. 
 “Liabilities” means any and all losses, claims, charges, debts, demands, actions, costs and expenses (including administrative and
related costs and expenses of any plan, program, or arrangement), of any nature whatsoever, whether absolute or contingent, vested or unvested, matured or unmatured, liquidated or unliquidated, accrued or unaccrued, known or unknown, whenever
arising. 
 “Losses” has the meaning ascribed to it in the Distribution Agreement. 
 “Original Option” has the meaning ascribed to it in Section 8.2. 
 “Outstanding Awards” has the meaning ascribed to it in Section 8.1. 
 “Party” has the meaning ascribed to it in the preamble to this Agreement. 
  

 4 

 “Parties” has the meaning ascribed to it in the preamble to this Agreement. 

“Pension Plan Asset Transfer Amount” means, in the case of a transfer of assets and liabilities from a Verizon Pension Plan to an
Idearc Pension Plan, the amount required to be transferred pursuant to Section 6.3. 
 “Person” has the meaning
ascribed to it in the Distribution Agreement. 
 “Plan” means any plan, policy, program, payroll practice, on-going
arrangement, contract, trust, insurance policy or other agreement or funding vehicle, whether written or unwritten, providing compensation or benefits to employees, or former employees of the Idearc Group or Verizon, as the case may be. 

“PSU” has the meaning ascribed to it in Section 8.3. 
 “Remaining Option” has the meaning ascribed to it in Section 8.2. 
 “Represented Employee” means any Idearc Employee whose employment is governed by an Idearc CBA as of the Distribution Date. 

“Retained Employee” means any individual who, as of the Close of the Distribution Date, (i) is actively employed by, or on an
approved leave of absence or lay-off with right of recall from, a member of the Verizon Group, (ii) had been primarily employed in the Spinco Business and (iii) whose employment Verizon determines, in its sole discretion, shall continue as
a Verizon Employee, not as an employee of a member of the Idearc Group. Verizon shall identify each Retained Employee by written notice delivered to Idearc at least five business days prior to the Distribution Date. 
 “Representative” means, with respect to any Person, any of such Person’s directors, managers or persons acting in a similar
capacity, officers, employees, agents, consultants, financial and other advisors, accountants, attorneys and other representatives. 
 “RSU” has the meaning ascribed to it in Section 8.3. 
 “Sales Commission Program” means the
programs listed on Annex C of this Agreement. 
 “Short Term Incentive Plan” means the Plans listed on Annex D of this
Agreement. 
 “Spinco Business” has the meaning ascribed to it in the Distribution Agreement. 
 “Split Date” means, with respect to any Idearc Mirror Plan, any date on or prior to the Distribution Date as of which Verizon determines
that the corresponding Verizon Plan shall be split into two or more parts for purposes of effecting the establishment of 

  

 5 

 
such Idearc Mirror Plans in accordance with this Agreement; provided that the Split Date for the VMPP shall be prior to the Distribution Date.
Notwithstanding anything else contained herein to the contrary, except for the immediately preceding sentence, if no such Split Date shall occur prior to the Distribution Date with respect to any Idearc Mirror Plan, the Distribution Date shall be
the Split Date for such Mirror Plan. 
 “Subsidiary” has the meaning ascribed to it in the Distribution Agreement.

 “Taxes” has the meaning ascribed to it in the Distribution Agreement. 
 “Third-Party Claim” has the meaning ascribed to it in the Distribution Agreement. 
 “Time-Off Benefits” has the meaning ascribed to it in Section 5.7. 
 “Transition Services Agreement” has the meaning ascribed to it in the Distribution Agreement. 
 “Transfer Date” has the meaning ascribed to it in Section 2.1(b). 
 “VEMPP” has the meaning ascribed to it in Section 6.2. 
 “Verizon” means Verizon Communications Inc. 
 “Verizon Common Stock” has the meaning ascribed to it in the Distribution Agreement. 
 “Verizon Employee” means any individual who, at the relevant time, is actively employed by, or on an approved leave of absence or lay-off with right of recall from, a member of the Verizon Group. 
 “Verizon Group” means Verizon and the Verizon Subsidiaries. 
 “Verizon Indemnitees” means Verizon, each Affiliate of Verizon immediately after the Contribution and each of their respective present
and former Representatives and each of the heirs, executors, successors and assigns of any of the foregoing. 
 “Verizon
Liabilities” means all Liabilities of Verizon or any of the Verizon Subsidiaries. In no event shall the term Verizon Liabilities include any Liabilities that are transferred from or otherwise cease to be Liabilities of any Verizon Group
member or any Verizon Plan pursuant to this Agreement or that are or have become Idearc Liabilities. 
 “Verizon Pension
Plans” mean the VMPP, the VEMPP, the Verizon Pension Plan for New York and New England Associates and the Verizon Pension Plan for Mid-Atlantic Associates, as each such plan is amended from time to time. 
  

 6 

 “Verizon Plan” means any Plan maintained or sponsored by Verizon or any of its
subsidiaries or affiliates (or any of their respective predecessors) at any time on or prior to the Distribution Date for the benefit of any current or former employee of any such person. 
 “Verizon Pre-Distribution Stock Value” means the closing price per share of Verizon Common Stock trading on the “regular way”
basis (based on the reported value inclusive of the right to participate in the distribution) on the Distribution Date. 
 “Verizon
Post-Distribution Stock Value” means the opening price per share of Verizon Common Stock on the first trading day following the Distribution Date; provided that, in no event shall such Verizon Post-Distribution Stock Value be less than the
Verizon Pre-Distribution Stock Value. 
 “Verizon Savings Plans” mean the Verizon Savings Plan for Management Employees, the
Savings and Security Plan for New York and New England Associates, and the Savings and Security Plan for Mid-Atlantic Associates, as each such plan is amended from time to time. 
 “Verizon Share Ratio” means the quotient obtained by dividing the Verizon Pre-Distribution Stock Value by the Verizon Post-Distribution
Stock Value. 
 “Verizon Stock Option” has the meaning ascribed to it in Section 8.2. 
 “Verizon Subsidiaries” means all direct and indirect Subsidiaries that are, or continue to be, Subsidiaries of Verizon immediately after
the Distribution Date. For the avoidance of doubt, for purposes of this Agreement no member of the Idearc Group shall be a Verizon Subsidiary. 
 “Verizon Trust” has the meaning ascribed to it in Section 6.4(c). 
 “Verizon Welfare Plans”
has the meaning ascribed to it in Section 5.1. 
 “VIS VMPP DVP” means an individual who as of the Close of the
Distribution Date, is neither then actively employed by, nor then on an approved leave of absence or lay-off with right of recall from Verizon Group or Idearc Group; whose last employment has been determined by Verizon to have been with the Spinco
Business; who has a deferred vested pension under the VMPP; and who is not eligible for a retirement or early retirement pension under the VMPP. “VIS VMPP DVP” shall also include the beneficiaries and dependents of such an individual.

 “VMPP” has the meaning ascribed to it in Section 6.1. 
  

 7 

 Section 1.2. Capitalized Terms. Any other capitalized term used, but not defined herein, but
defined in the Distribution Agreement, shall have the meaning ascribed thereto in the Distribution Agreement. 
 ARTICLE II. 
 EMPLOYEES; ASSUMPTION OF LIABILITIES 
 Section 2.1. Employees. 
 (a) General. To the extent that any individual identified as an Idearc Employee will
not automatically become or continue to be an employee of a member of the Idearc Group as of the Distribution Date, Verizon agrees to cause the employment of such individual to be transferred to a member of the Idearc Group as of the Distribution
Date. Notwithstanding the foregoing, Retained Employees shall remain employees of Verizon or another member of the Verizon Group. 
 (b)
Delayed Transfer Employees. Unless Verizon and Idearc shall otherwise agree in a written agreement signed by each party, in the event that such parties agree to transfer the employment of any Verizon Employee to any member of the Idearc Group
after the Distribution Date (each, a “Delayed Transfer Employee”), then effective as of the date such individual is hired by any such member of the Idearc Group (the “Transfer Date”), such individual shall become an
Idearc Employee and cease to be a Verizon Employee. As of the Transfer Date or such later date as is specified in this Agreement (or such other date as may otherwise be agreed in writing by and between Verizon and Idearc), all Liabilities of the
type and nature that would have been transferred to an Idearc Plan or assumed by Idearc had such Delayed Transfer Employee been an Idearc Employee as of the Distribution Date shall be assumed by Idearc or such other member of the Idearc Group it
shall designate (the “Designated Idearc Subsidiary”). For purposes of determining the commitments, duties and obligations of the Parties hereunder in respect of any such Delayed Transfer Employee, such Employee’s Transfer Date
shall be substituted for the Distribution Date; provided that in no event shall the period of any commitment regarding the benefits to be continued on behalf of such Delayed Transfer Employee continue in effect beyond the date it would
otherwise have expired if his or her employment had transferred as of the Distribution Date. Notwithstanding anything else contained herein to the contrary, to the extent that Idearc allocates duties, responsibilities, obligations or Liabilities to
a Designated Idearc Subsidiary, Idearc guarantees the performance by such Designated Idearc Subsidiary of such duties, responsibilities and obligations, and guarantees payment in respect of any Liabilities, assigned to such Designated Idearc
Subsidiary. 
 (c) Non-Termination of Employment or Benefits. Except as otherwise expressly provided herein, no provision of this
Agreement or the Distribution Agreement shall be construed to create any right, or accelerate any entitlement, to any compensation 
  

 8 

 or benefit whatsoever on the part of any employee employed by any member of the Verizon Group or the Idearc Group.
Without limiting the generality of the foregoing, at no time shall the Distribution cause any employee of any member of the Verizon Group or any Idearc Employee to be deemed to have incurred a termination of employment or to have created any
entitlement to any severance benefits or the commencement of any other benefits under any Verizon Plan or any of the Individual Agreements. 
 (d) No Right to Continued Employment. Nothing contained in this Agreement shall confer on any employee of any member of the Verizon Group or any Idearc Employee any right to continued employment. Except as specifically provided
otherwise herein, this Agreement shall not limit the ability of the Idearc Group to change, at any time after the Distribution Date and in its sole discretion, an Idearc Employee’s position, compensation or benefits for performance-related,
business or any other reasons or require any member of the Idearc Group to continue the employment of an Idearc Employee for any particular period of time after the Distribution Date, provided that Idearc shall bear all liability for any such
termination of employment or modification of terms and conditions of employment following the Distribution Date with respect to Idearc Employees. 
 (e) Compensation and Benefits of Represented Employees. As of the Distribution Date, the compensation, benefits, hours, terms and conditions of employment of Represented Employees shall continue to be determined in accordance with
the applicable Idearc CBAs. 
 Section 2.2. Assumption of Liabilities. 
 (a) By Idearc. As of the Distribution Date, except as otherwise expressly provided for in this Agreement, Idearc shall or shall cause a Designated
Idearc Subsidiary or Idearc Plan to assume and agree to pay, perform, fulfill and discharge, in accordance with their respective terms, all of the following, regardless of when or where such Liabilities arose or arise or are incurred: 
 (i) all Liabilities to or relating to Idearc Individuals and their dependents and beneficiaries, to the extent relating to, arising out of
or resulting from employment with any member of the Verizon Group on or prior to the Distribution Date; 
 (ii) all
Liabilities under any Individual Agreement relating to any Idearc Individual; and 
 (iii) all other Liabilities relating to,
or arising out of, or resulting from obligations, liabilities, and responsibilities expressly assumed or retained by a member of the Idearc Group or an Idearc Plan pursuant to this Agreement or the Distribution Agreement. 
  

 9 

 In addition, as of each applicable Transfer Date (or such later date as may be agreed upon by the
Parties), Idearc or a Designated Idearc Subsidiary shall assume all of the Liabilities outlined in (i), (ii), and (iii) above with respect to each Delayed Transfer Employee. 
 (b) By Verizon. Notwithstanding Section 2.2(a), Verizon shall or shall cause the applicable Verizon Plan or Verizon Group member to agree to
retain, pay, perform, fulfill and discharge all of the following: 
 (i) all Liabilities to or relating to Retained Employees
and their dependents and beneficiaries, to the extent relating to, arising out of or resulting from former, present, or future employment with the Verizon Group; 
 (ii) all Liabilities to or relating to VIS VMPP DVPs and their dependents and beneficiaries, to the extent relating to, arising out of or
resulting from former, present, or future employment with the Verizon Group; 
 (iii) all Liabilities with respect to
Outstanding Awards; and 
 (iv) all Liabilities under the EDP or IDP. 
 Section 2.3. Reimbursement. 
 (a)
By Idearc. From time to time after the Distribution, Idearc shall promptly reimburse Verizon, but in no event more than fifteen business days after delivery by Verizon of an invoice therefor containing reasonable substantiating documentation
of such costs and expenses, for the cost of any obligations or Liabilities that Verizon elects to, or is compelled to, pay or otherwise satisfy, that are or that pursuant to this Agreement have become, the responsibility of Idearc or any Idearc
Designated Subsidiary. 
 (b) By Verizon. From time to time after the Distribution, Verizon shall promptly reimburse Idearc, but in no
event more than fifteen business days after delivery by Idearc of an invoice therefor containing reasonable substantiating documentation of such costs and expenses, for the cost of any obligations or Liabilities that Idearc elects to, or is
compelled to, pay or otherwise satisfy, that are or that pursuant to this Agreement have become, the responsibility of Verizon. 
 Section 2.4. Indemnification. 
 (a) Idearc shall indemnify, defend and hold harmless the Verizon Indemnitees from and
against all Indemnifiable Losses arising out of or due to (i) the failure of any member of the Idearc Group to pay or satisfy any Idearc Liabilities, (ii) any other breach of the duties or obligations of any member of the Idearc Group, as
set forth in this Agreement, or (iii) any untrue statement or alleged untrue statement of a material fact or 
  

 10 

 omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
herein not misleading, in each case to the extent relating to the Idearc Group. 
 (b) Verizon shall indemnify, defend and hold harmless the
Idearc Indemnitees from and against all Indemnifiable Losses arising out of or due to (i) the failure of any member of the Verizon Group to pay or satisfy any Verizon Liabilities (other than Verizon Liabilities which arise due to the failure of
any Idearc Group member or any Idearc Plan to satisfy any Idearc Liabilities), (ii) any other breach of the duties and obligations of any member of the Verizon Group, as set forth in this Agreement, or (iii) any untrue statement or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements herein not misleading, in each case except to the extent relating to the Idearc Group.

 Section 2.5. Procedures for Indemnification for Third-Party Claims. 
 (a) Verizon shall, and shall cause the other Verizon Indemnitees to, notify Idearc in writing promptly after learning of any Third-Party Claim for which
any Verizon Indemnitee intends to seek indemnification from Idearc under this Agreement. Idearc shall, and shall cause the other Idearc Indemnitees to, notify Verizon in writing promptly after learning of any Third-Party Claim for which any Idearc
Indemnitee intends to seek indemnification from Verizon under this Agreement. The failure of any Indemnitee to give such notice shall not relieve any Indemnifying Party of its obligations under this Article II except to the extent that such
Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe such Third-Party Claim in reasonable detail considering the Information provided to the Indemnitee and shall indicate the amount (estimated if
necessary) of the Indemnifiable Loss that has been claimed against or may be sustained by such Indemnitee. 
 (b) Except as otherwise
provided in paragraph (c) of this Section 2.5, an Indemnifying Party may, by notice to the Indemnitee and to Verizon, if Idearc is the Indemnifying Party, or to the Indemnitee and Idearc, if Verizon is the Indemnifying Party, within thirty
(30) days after receipt by such Indemnifying Party of such Indemnitee’s notice of a Third-Party Claim, undertake (itself or through another member of the Group of which the Indemnifying Party is a member) the defense or settlement of such
Third-Party Claim, at such Indemnifying Party’s own expense and by counsel reasonably satisfactory to the Indemnitee. If an Indemnifying Party undertakes the defense of any Third-Party Claim, such Indemnifying Party shall control the
investigation and defense or settlement thereof, and the Indemnitee may not settle or compromise such Third-Party Claim without the prior written consent of the Indemnifying Party, except that such Indemnifying Party shall not (i) require any
Indemnitee, without its prior written consent, to take or refrain from taking any action in connection with such Third-Party Claim, or make any public statement, which such Indemnitee reasonably considers 
  

 11 

 to be against its interests, or (ii) without the prior written consent of the Indemnitee and of Verizon, if the
Indemnitee is a Verizon Indemnitee, or the Indemnitee and of Idearc, if the Indemnitee is an Idearc Indemnitee, consent to any settlement that does not include as a part thereof an unconditional release of the relevant Indemnitees from liability
with respect to such Third-Party Claim or that requires the Indemnitee or any of its Representatives or Affiliates to make any payment that is not fully indemnified under this Agreement or to be subject to any non-monetary remedy. Subject to the
Indemnifying Party’s control rights, as specified herein, the Indemnitees may participate in such investigation and defense, at their own expense. Following the provision of notices to the Indemnifying Party, until such time as an Indemnifying
Party has undertaken the defense of any Third-Party Claim as provided herein, such Indemnitee shall control the investigation and defense or settlement thereof, without prejudice to its right to seek indemnification hereunder. 
 (c) If an Indemnitee reasonably determines that there may be legal defenses available to it that are different from or in addition to those available to
its Indemnifying Party which make it inappropriate for the Indemnifying Party to undertake the defense or settlement thereof, then such Indemnifying Party shall not be entitled to undertake the defense or settlement of such Third-Party Claim; and
counsel for the Indemnifying Party shall be entitled to conduct the defense of such Indemnifying Party and counsel for the Indemnitee (selected by the Indemnitee) shall be entitled to conduct the defense of such Indemnitee, in which case the
reasonable fees, costs and expenses of such counsel for the Indemnitee (but not more than one such counsel (in addition to local counsel, if any) reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party, it being
understood that both such counsel shall cooperate with each other to conduct the defense or settlement of such action as efficiently as possible. 
 (d) In no event shall an Indemnifying Party be liable for the fees and expenses of more than one counsel for all Indemnitees (in addition to local counsel and its own counsel, if any) in connection with any one action, or separate but
similar or related actions, in the same jurisdiction arising out of the same general allegations or circumstances; provided, however, (i) if the Indemnitees are individuals, (ii) the claims for which they are seeking indemnification are
covered under the Indemnifying Party’s directors and officers liability policy, and (iii) the Indemnifying Party’s insurance carrier has agreed to pay fees and expenses for multiple counsel, then the Indemnifying Party shall pay such
fees and expenses. 
 (e) If the Indemnifying Party undertakes the defense or settlement of a Third-Party Claim, the Indemnitee shall make
available to the Indemnifying Party and its counsel all information and documents reasonably available to it which relate to such Third-Party Claim, and otherwise cooperate as may reasonably be required in connection with the investigation, defense
and settlement thereof, subject to the terms and conditions of a mutually acceptable joint defense agreement. 
  

 12 

 Section 2.6. Reductions for Insurance Proceeds and Other Amounts. 
 (a) The amount that any Indemnifying Party is or may be required to pay to any Indemnitee pursuant to this Article II shall be reduced (retroactively or
prospectively) by (i) any insurance proceeds or other amounts actually recovered from third parties by or on behalf of such Indemnitee in respect of the related Indemnifiable Losses (net of all costs of recovery, including deductibles,
co-payments or other payment obligations) and (ii) any tax benefit actually realized by the Indemnitee in respect of the related Indemnifiable Losses. The existence of a claim by an Indemnitee for insurance or against a third party in respect
of any Indemnifiable Loss or the availability of potential tax benefits shall not, however, delay or reduce any payment pursuant to the indemnification provisions contained herein and otherwise determined to be due and owing by an Indemnifying
Party. The Indemnifying Party shall make payment in full of such amount so determined to be due and owing by it and, if, and to the extent that, there exists a claim against any third party (other than an insurer) in respect of such Indemnifiable
Loss, the Indemnitee shall assign such claim against such third party to the Indemnifying Party. Any tax benefit actually received by an Indemnified Party shall be paid over to the Indemnifying Party to the extent such tax benefit relates to an
Indemnifiable Loss for which indemnification has already been received. Notwithstanding any other provisions of this Agreement, it is the intention of the Parties hereto that no insurer or any other third party shall be (i) entitled to a
benefit it would not be entitled to receive in the absence of the foregoing indemnification provisions or (ii) relieved of the responsibility to pay any claims for which it is obligated. If an Indemnitee shall have received the payment required
by this Agreement from an Indemnifying Party in respect of any Indemnifiable Losses and shall subsequently actually receive insurance proceeds, tax benefits or other amounts in respect of such Indemnifiable Losses, then such Indemnitee shall hold
such insurance proceeds in trust for the benefit of such Indemnifying Party and shall promptly pay to such Indemnifying Party a sum equal to the amount of such insurance proceeds, tax benefits or other amounts actually received, up to the aggregate
amount of any payments received from such Indemnifying Party pursuant to this Agreement in respect of such Indemnifiable Losses. 
 Section 2.7. Contribution. 
 (a) If the indemnification provided for in this Article II is unavailable to, or
insufficient to hold harmless, any Indemnitee in respect of any Losses for which indemnification is provided for herein, then the relevant Indemnifying Party shall contribute to the Losses for which such indemnification is unavailable or
insufficient in such proportion as is appropriate to reflect the relative fault of such Indemnifying Party and such Indemnitee in connection with the circumstances which resulted in such Losses as well as any other relevant equitable considerations.

 (b) The relative fault of Verizon and Idearc shall be determined by reference to, among other things, the Parties’ relative intent,
knowledge, access to information and 
  

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 opportunity to correct or prevent such statement or omission and whether any such untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates to information supplied by Verizon or by Idearc. 
 (c)
Verizon and Idearc agree that it would not be just and equitable if contribution pursuant to this Section 2.7 were determined by any method of allocation which does not take account of the equitable considerations referred to in
Section 2.7(b). The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an Indemnitee and referred to in Sections 2.4(a) and 2.4(b) shall be deemed to include any legal or other expenses reasonably incurred by such
Indemnitee in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission. 
 Section 2.8. Consequential Damages. In no event shall an Indemnifying Party be
liable for any Indemnitee’s special, punitive, exemplary, incidental, consequential or indirect damages, or lost profits, whether based on contract, tort, strict liability, other law or otherwise. 
 Section 2.9. Joint Defense and Cooperation. With respect to any Third Party Claim in which both Verizon and Idearc are, or reasonably may be
expected to be, named as parties, or that otherwise implicates both Verizon and Idearc to a material degree, the Parties shall reasonably cooperate with respect to such Third Party Claim and maintain a joint defense in a manner that will preserve
applicable privileges. 
 ARTICLE III. 
 COLLECTIVE BARGAINING AGREEMENTS 
 Section 3.1. Continuity and Performance of Agreements. As of the Distribution Date,
the unions representing the employees of any Idearc Subsidiary will continue to represent those employees for purposes of collective bargaining with their respective employers, and the collective bargaining agreements between those Idearc
Subsidiaries and the unions representing their employees, which are listed on Annex A (the “Idearc CBAs”), shall remain in effect. Any obligations of any Verizon Group Member under the Idearc CBAs shall be the obligations of and
performed by Idearc or a Designated Idearc Subsidiary. 
 ARTICLE IV. 
 IDEARC PLANS GENERALLY 
 Section 4.1. Establishment of Idearc Plans. Idearc
shall have adopted, or shall have caused to be adopted, the following Idearc Mirror Plans, effective as of the date 
  

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 specified below: (i) effective as of the Distribution Date, the Idearc Welfare Plans, Idearc Savings Plans and the
Idearc Union Pension Plan, and (ii) effective as of the Split Date for such Idearc Mirror Plan, the Idearc Management Pension Plan and the Idearc Excess Pension Plan. Idearc or an Idearc Designated Subsidiary shall become the plan sponsor of,
and from and after the date of adoption of each Plan, shall have sole responsibility for each Idearc Mirror Plan. Each Idearc Mirror Plans shall be substantially identical in all material respects to the corresponding Verizon Plans as in effect
immediately prior to the adoption of such Idearc Mirror Plan. 
 Section 4.2. Terms of Participation by Idearc Individuals. Each
of the Idearc Mirror Plans shall be, with respect to Idearc Individuals who are participants in such plan, in all respects the successors in interest to and shall recognize all rights and entitlements as of the Close of the Distribution Date or the
Split Date, as applicable, under the corresponding Verizon Plan in which such Idearc Individual participated prior to the Distribution Date or the Split Date (or Transfer Date, as the case may be). Verizon and Idearc agree that Idearc Individuals
are not entitled to receive duplicative benefits from the Verizon Plans and the Idearc Plans. 
 With respect to Idearc Individuals, each
Idearc Mirror Plan shall provide that all service, all compensation, and all other factors affecting benefit determinations that, as of the Close of the Distribution Date, were recognized under the corresponding Verizon Plan (for periods immediately
before the Close of the Distribution Date or the Split Date, as the case may be) shall receive full recognition, credit, and validity and be taken into account under such Idearc Mirror Plan to the same extent as though arising under such Idearc
Mirror Plan, except to the extent that duplication of benefits would result. All beneficiary designations made by Idearc Individuals under the corresponding Verizon Plan shall be transferred to and be in full force and effect under the corresponding
Idearc Mirror Plans until such beneficiary designations are replaced or revoked by the Idearc Individual who made the beneficiary designation. 
 Notwithstanding the foregoing in this Section 4.2, nothing in this Agreement other than those provisions specifically set forth herein to the contrary shall preclude Idearc (or, as applicable, any member of the Idearc Group) from
amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Idearc Plan; any benefit under any Plan or any trust, insurance policy or funding vehicle related to any Idearc Plan. 
 Section 4.3. Transition Services. Verizon shall provide transition services to Idearc Group with respect to the Idearc Mirror Plans and the
Idearc Employees in accordance with the Transition Services Agreement. 
  

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 ARTICLE V. 
 HEALTH AND WELFARE 
 Section 5.1. Assumption of Health and Welfare Plans. 
 (a) Verizon or one or more of its subsidiaries maintain health and welfare plans for the benefit of eligible Verizon Employees and certain Former VIS
Employees including Former VIS Employees who have retired as of the Distribution Date (the “Verizon Welfare Plans”). As of the Distribution Date, each person who is an Idearc Individual on such date shall cease to be covered under
the Verizon Welfare Plans. 
 (b) Immediately after the Distribution Date, all Liabilities in respect of or relating to such Idearc
Individuals under the Verizon Welfare Plans shall cease to be Liabilities of any member of the Verizon Group or the Verizon Welfare Plans and any and all such Liabilities shall be assumed by Idearc or a Designated Idearc Subsidiary and the Idearc
Welfare Plans. 
 (c) Except for the FRP account balances described in Section 5.2(c), nothing in this Agreement shall require Verizon,
any Verizon Group member or any Verizon Welfare Plan to transfer assets or reserves with respect to the Verizon Welfare Plans to Idearc, any Idearc Group member or the Idearc Welfare Plans. 
 Section 5.2. Adoption of Health and Welfare Plans. 
 (a) Effective as of the Close of the Distribution Date, Idearc shall adopt or shall cause to be adopted for the benefit of eligible Idearc Individuals, health and welfare plans, including plans providing
(i) executive life insurance and (ii) active and post-retirement health, dental and life insurance benefits (the “Idearc Welfare Plans”) that are substantially the same as the benefits provided under the corresponding
Verizon Welfare Plan in which such individuals participate immediately prior to the Distribution Date (or, if applicable, the appropriate Transfer Date). 
 (b) Terms of Participation in Idearc Welfare Plans. Idearc shall cause the Idearc Welfare Plans to (i) waive all limitations as to preexisting conditions, exclusions, service conditions and waiting period
limitations, and any evidence of insurability requirements applicable to any such Idearc Individuals other than such limitations, exclusions, and conditions that were in effect with respect to Idearc Individuals as of the Distribution Date, in each
case under the corresponding Verizon Welfare Plan and (ii) honor any deductibles, out-of-pocket maximums and co-payments incurred by Idearc Individuals under the corresponding Verizon Welfare Plan in satisfying the applicable deductibles,
out-of-pocket expenses or co-payments under such Verizon Welfare Plan for calendar year 2006. 
  

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 (c) Transfer of FRP Assets. Verizon will make available to Idearc, not less than five calendar days prior
to the Distribution, a list of individuals who will become Idearc Employees or Former VIS Employees as of the Distribution Date and who are participants in the FRP (including those participating pursuant to an election under COBRA, the “FRP
Participants”), together with the elections made prior to the Distribution Date with respect to such accounts through the Distribution Date. 
 (i) Idearc shall take all actions necessary and legally permissible to ensure that as of the Distribution Date, it includes the FRP Participants in any Idearc Plan that constitutes a Code Section 125 plan and any
flexible spending arrangements thereunder (the “Idearc FSA”). Idearc shall further take all actions necessary and legally permissible to amend the Idearc FSA to provide that as of the Distribution Date and for the plan year in which the
Distribution Date occurs, but not for any specific time thereafter, (A) the FRP Participants shall become participants in the Idearc FSA as of the beginning of the FRP’s plan year and at the level of coverage provided under the FRP;
(B) the FRP Participants’ salary reduction elections shall be taken into account for the remainder of the Idearc FSA plan year as if made under the Idearc FSA; and (C) the Idearc FSA shall reimburse medical expenses
incurred by the FRP Participants at any time during the FRP’s plan year (including claims incurred prior to the Closing Date but unpaid prior to the Closing Date), up to the amount of the FRP Participants’ election and reduced by amounts
previously reimbursed by the FRP. 
 (ii) Verizon shall take all actions necessary and legally permissible to amend the FRP to
provide that the FRP Participants shall cease to be eligible for reimbursements from the FRP as of the Distribution Date. 
 (iii) As soon as practicable following the Distribution Date, Verizon shall transfer to Idearc and Idearc agrees to accept, those amounts which represent the debit and credit balances under the FRP of the FRP Participants, and the transfer
of such amounts shall take into account on a net basis participants’ payroll deductions and claims paid through the Distribution Date. Verizon represents and covenants that as of the Distribution Date it has properly withheld from the pay of
applicable FRP Participants all amounts in accordance with their FRP elections. 
 Section 5.3. COBRA and HIPAA. As of the Close
of the Distribution Date, Idearc shall be responsible for administering compliance with the continuation coverage requirements for “group health plans” under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”), and the portability requirements under the Health Insurance Portability and Accountability Act of 1996 with respect to Idearc Individuals and any of their dependents having rights derived from such Idearc Individuals for
the period after the Close of the Distribution Date. Idearc shall assume or shall cause an Idearc Designated Subsidiary to assume any Liabilities of Verizon and the 
  

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 Verizon Plans to provide COBRA coverage to any Idearc Individual and any of their dependents who incurred a qualifying
event under COBRA on or prior to the Distribution Date and who is still eligible to receive such continuing coverage as of or after the Distribution Date. 
 Section 5.4. Workers’ Compensation Claims. Effective as of the Distribution Date, Idearc shall assume all Liabilities for Idearc Individuals related to any and all workers’ compensation claims
and coverage, whether arising under any law of any state, territory, or possession of the U.S. or the District of Columbia and Idearc or otherwise, shall be fully responsible for the administration of all such claims; provided that Verizon shall
either (i) transfer to or cause to be transferred or allocated for the benefit of Idearc, a Designated Idearc Subsidiary or Idearc Individuals an amount equal to the value of any assets (as determined by Verizon in its sole discretion) set
aside by Verizon prior to the Distribution Date (including any reserves established under any contract providing coverage against any such claims) for the payment of, or to meet the obligations in respect of, any such workers’ compensation
benefits or obligations in respect of such Idearc Individuals or (ii) represent in writing to Idearc that no such assets have been set aside. If Idearc is unable to assume any such Liability or the administration of any such claim because of
the operation of applicable state law or for any other reason, Verizon shall retain such Liabilities and Idearc shall reimburse and otherwise fully indemnify Verizon for all such Liabilities, including the costs of administering the plans, programs
or arrangements under which any such Liabilities have accrued or otherwise arisen. All reimbursement amounts shall be paid in accordance with the procedure set forth in Section 2.3. 
 Section 5.5. Leave of Absence Programs. Idearc shall be responsible for the administration and compliance of all leaves of absences and
related programs (including compliance with the Family and Medical Leave Act) affecting Idearc Individuals for the period after the Close of the Distribution Date. 
 Section 5.6. Time-Off Benefits. The Idearc Group shall credit each Idearc Employee with the amount of accrued but unused vacation time, sick time and other time-off benefits (together the “Time-Off
Benefits”) as such individual had with the Verizon Group as of the Distribution Date and shall provide such individuals with the same rights, benefits, and entitlements in respect to such Time-Off Benefits as they were entitled to from the
Verizon Group as of the Distribution Date or Transfer Date, as the case may be. 
 ARTICLE VI. 
 PENSION PLANS 
 Section 6.1. Split of
Verizon Plans. Prior to the Distribution Date and on such Split Date as Verizon shall determine, Verizon shall (i) split the Verizon Management 
  

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 Pension Plan (“VMPP”) into two separate stand alone plans, one of which (the “Idearc Management
Pension Plan”) shall be for the benefits of those individuals who are participants in the VMPP and who become or are expected to become Idearc Individuals as of the Distribution Date and (ii) split the Verizon Excess Pension Plan (the
“Excess Plan”) into two separate stand alone plans, one of which (the “Idearc Excess Pension Plan”) shall be for the benefits of those individuals who are participants in the Excess Plan and who become or are
expected to become Idearc Individuals as of the Distribution Date. 
 Section 6.2. Establishment of Pension Plans and Trusts.

 (a) Idearc Management Pension Plan and Excess Plan. Effective as of the Split Date, Idearc shall assume sponsorship of and adopt
the Idearc Management Pension Plan and the Idearc Excess Pension Plan. Effective as of the Distribution Date, Idearc or a Designated Idearc Subsidiary shall assume sponsorship of and adopt the Idearc Trust. 
 Idearc shall be responsible for taking or causing to be taken all necessary, reasonable, and appropriate action to maintain and administer the Idearc
Management Pension Plan so that it qualifies under Section 401(a) of the Code and the related trust thereunder is exempt from Federal income taxation under Section 501(a) of the Code. 
 (b) Idearc Union Pension Plan and Trust. Effective as of the Distribution Date, Idearc or a Designated Idearc Subsidiary shall establish a defined
benefit pension plan (the “Idearc Union Pension Plan”) and related trust to provide retirement benefits to Idearc Individuals who are Represented Employees or Former VIS Employees who were union represented and, in either case, as
of the Distribution Date participate in the Verizon Enterprises Management Pension Plan (the “VEMPP”), the Verizon Pension Plan for New York and New England Associates or the Verizon Pension Plan for Mid-Atlantic Associates. A
Former VIS Employee who is a participant in the VEMPP as of the Distribution Date shall be considered union represented only if the employee was union represented on the date the employee terminated employment and became a Former VIS Employee.

 Idearc shall be responsible for taking or causing to be taken all necessary, reasonable, and appropriate action to establish, maintain and
administer the Idearc Union Pension Plan so that it qualifies under Section 401(a) of the Code and the related trust thereunder is exempt from Federal income taxation under Section 501(a) of the Code. 
 Section 6.3. Assumption of Pension Plan Liabilities and Allocation of Interests in the Verizon Pension Trusts. 
 (a) Assumption of Liabilities by Idearc Pension Plan. Subject to completion of the Pension Plan Asset Allocation specified below, effective as of
the Split Date or the Distribution Date, as the case may be, all Liabilities to or relating to persons who are 
  

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 Idearc Individuals on such Distribution Date or Split Date, as the case may be, under the Verizon Pension Plans shall
cease to be Liabilities of the Verizon Pension Plans and shall be assumed in full and in all respects by the corresponding Idearc Pension Plan. The “corresponding” plan shall be: (i) the Idearc Union Pension Plan with respect to
participants in the Verizon Pension Plan for New York and New England Associates and the Verizon Pension Plan for Mid-Atlantic Associates; (ii) the Idearc Management Pension Plan with respect to participants in the VMPP; and (iii) either
the Idearc Union Pension Plan or the Idearc Management Pension Plan with respect to participants in the VEMPP, with such determination being based on employment status (management or union-represented) as of the Distribution Date for Idearc
Employees and employment status at termination of employment (management or union-represented) for Former VIS Employees. Effective as of the Split Date all Liabilities to or relating to persons who are Idearc Individuals on such Split Date under the
Excess Plan shall cease to be Liabilities of the Excess Plan and shall be assumed in full and in all respects by the Idearc Excess Pension Plan. Idearc shall be solely responsible for all ongoing rights of or relating to Idearc Individuals for
future participation in the Idearc Pension Plans and the Idearc Excess Pension Plan. 
 (b) Calculation of Pension Plan Asset
Allocation. As soon as practicable after the Split Date, Verizon’s actuary shall calculate and certify the Pension Plan Asset Transfer Amount for each Idearc Pension Plan as of the close of business of the day immediately preceding the
Split Date for the Idearc Management Pension Plan and the close of business as of the Distribution Date for the Idearc Union Pension Plan. Such amount shall be the amount required to be transferred by Section 414(1) of the Code and the
regulations thereunder for all Idearc Individuals whose accrued benefits are transferred to an Idearc Pension Plan pursuant to subsection (a) of this Section 6.3, determined using the actuarial factors and assumptions set forth on Schedule
6.3(b). Within ten (10) days after the date Verizon certifies to Idearc the Pension Plan Asset Transfer Amount for each Idearc Pension Plan, Verizon’s actuary shall provide Idearc’s actuary with a computer file containing the employee
data and other information needed to calculate the Pension Plan Asset Transfer Amount. If Idearc’s actuary disagrees with the determination of a Pension Plan Asset Transfer Amount, Idearc may, within thirty (30) days after receipt of such
computer file from Verizon, deliver a written notice to Verizon disagreeing with such calculation and setting forth Idearc’s calculation of the Pension Plan Asset Transfer Amount. The Parties shall, during the fifteen (15) days following
such delivery, negotiate in good faith to reach an agreement on the disputed items or amounts in order to determine, as may be required, the amount of the Pension Plan Asset Transfer Amount, which amount shall not be more than the amount thereof
shown in the calculations of Idearc’s actuary nor less than the amount shown in the calculations of Verizon’s actuary. If the two actuaries are unable to agree on the amount of the Pension Plan Asset Transfer Amount during such fifteen
(15)-day period, the Parties shall jointly select an independent third actuary with whom none of the parties have a material relationship, whose determination shall be binding on the Parties. The 
  

 20 

 third actuary shall be directed to render a calculation of the Pension Plan Asset Transfer Amount in accordance with the
provisions of this Agreement as promptly as practicable. Each of the Parties shall bear the fees, costs and expenses of their respective actuaries, and the fees, costs and expense of the third actuary shall be borne one-half by Verizon and one-half
by Idearc. 
 (c) Transfer of Assets to Idearc Pension Trusts. 
 (i) As soon as practicable after and effective as of the Distribution Date, Verizon shall cause to be transferred from the master trust
established under the Verizon Pension Plans (the “Verizon Trust”) to the master trust established in respect of the Idearc Pension Plans (the “Idearc Trust”), an initial amount of assets (the “Initial Asset
Transfer”). The amount of the Initial Asset Transfer shall be equal to 90% of the amount the enrolled actuary for such Verizon Plan determines in good faith to be the approximate Pension Plan Asset Transfer Amount as of the date of the
Initial Asset Transfer. 
 (ii) As soon as practicable after the final calculation of each Idearc Plan’s Pension Plan
Asset Transfer Amount pursuant to Section 6.3(b), if such amount exceeds the Initial Asset Transfer, Verizon will cause the applicable Verizon Trust to transfer to the corresponding Idearc Trust (the “Final Asset Transfer”)
assets in an amount equal to the Pension Plan Asset Transfer Amount with respect to such Idearc Plan less the sum of (A) the Initial Asset Transfer and (B) the aggregate amount of benefit payments (the “Benefit Payments”)
made by the Verizon Pension Plan in respect of Idearc Individuals from and after the Distribution Date. The amount determined under the preceding sentence shall be increased or decreased, as the case may be, by the investment return on the
applicable amount determined in accordance with the Letter of Direction attached hereto as Annex B. If the sum of the Initial Asset Transfer plus the Benefit Payments exceeds the Pension Plan Asset Transfer Amount for an Idearc Pension Plan, then
the portion of the Idearc Trust relating to such plan shall return such excess, increased or decreased by the investment return determined in accordance with the Letter of Direction attached hereto as Exhibit A from the date of the Initial Asset
Transfer (or the date of the Benefit Payment, as the case may be) to the date of return, to the portion of the Verizon Trust relating to the corresponding Verizon Pension Plan. 
 (iii) The applicable investment return under subsection (c)(ii) above and the identification of the types of assets (cash and/or other
in-kind assets) to be transferred from the Verizon Trust to the Idearc Trust in either the Initial Asset Transfer or the Final Asset Transfer shall be determined in accordance with the Letter of Direction attached hereto as Exhibit A. 
  

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 (iv) Under no circumstances shall Verizon or any Verizon Pension Plan be liable to
transfer any additional amount to Idearc or any Idearc Pension Plan or any other Person or Governmental Authority in respect of the Liabilities transferred to the Idearc Pension Plans pursuant to Section 6.3(a), including, but not limited to,
any circumstance under which any Person or Governmental Authority states a claim to some portion or all of any Pension Plan Asset Transfer Amount. Under no circumstances shall Verizon or the Excess Plan be liable to transfer any amount to Idearc or
the Idearc Excess Pension Plan or any other Person or Governmental Authority in respect of the Liabilities transferred to the Idearc Excess Pension Plan pursuant to Section 6.3(a). 
 Section 6.4. Continuation of Elections. As of the Split Date or the Distribution Date, as the case may be, Idearc shall cause the Idearc
Pension Plans and the Idearc Excess Pension Plan to recognize and maintain all existing elections, including, but not limited to, beneficiary designations, payment forms and other rights of alternate payees under qualified domestic relation orders
as were in effect under the corresponding Verizon Pension Plan or Excess Plan, unless and until changed or modified in accordance with the terms of the applicable plan or otherwise in accordance with applicable law. 
 ARTICLE VII. 
 SAVINGS PLANS 
 Section 7.1. Establishment of the Idearc Savings Plan. Effective as of the Distribution Date, Idearc shall establish, or cause to be
established, three defined contribution plans and trusts for the benefit of Idearc Individuals (the “Idearc Savings Plans”) that are substantially similar to the Verizon Savings Plans, so that each Verizon Savings Plan shall have
one and only one corresponding Idearc Savings Plan. Idearc shall be responsible for taking or causing to be taken all necessary, reasonable, and appropriate action to establish, maintain, and administer the Idearc Savings Plans so that each
qualifies under Section 401(a) of the Code and the related trusts thereunder are exempted from Federal income taxation under Section 501(a)(1) of the Code. 
 Section 7.2. Assumption of Liabilities and Transfer of Assets. 
 (a) Effective as of the
Distribution Date, but subject to the asset transfer specified in Section 7.2(b) below, each Idearc Savings Plan shall assume and be solely responsible for all Liabilities for or relating to Idearc Individuals under the applicable Verizon
Savings Plan. Idearc shall be solely responsible for all ongoing rights of or relating to Idearc Individuals for future participation (including the right to make contributions through payroll deductions) in the Idearc Savings Plans. 
 (b) Effective as of the Distribution Date, Verizon shall cause the account balances (including any outstanding loan balances) in the applicable Verizon
Savings 
  

 22 

 Plan attributable to Idearc Individuals to be transferred in cash and in-kind (including, but not limited to, participant
loans and company stock), to the corresponding Idearc Savings Plan, and Idearc shall cause each Idearc Savings Plan to accept such transfer or accounts and underlying assets and, effective as of the date of such transfer, to assume and to fully
perform pay or discharge, all obligations of the Verizon Savings Plans relating to the accounts of Idearc Individuals (to the extent those assets related to those accounts are actually transferred from a Verizon Savings Plan). The transfer shall be
conducted in accordance with Section 414(l) of the Code, Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA. 
 ARTICLE VIII. 
 EQUITY BASED INCENTIVE AWARDS 
 Section 8.1. General Treatment of Outstanding Awards. Generally, Verizon shall retain all Liabilities in respect of all stock based incentive compensation awards granted to Idearc Individuals that are not
part of any employee pension benefit plan within the meaning of Section 3(3) of ERISA and that are outstanding as of the Distribution Date (the “Outstanding Awards”). 
 Section 8.2. Outstanding Options. Each Outstanding Award that is an option in respect of Verizon Common Stock granted under a Verizon Plan
that is held by an Idearc Individual as of the Distribution Date (each, an “Original Option”) shall remain an option in respect of Verizon Common Stock subject to a Verizon Plan (each, a “Remaining Option”). Subject
to any limitation required to comply with the provisions of Section 409A of the Code, each Remaining Option held by any person who is or becomes an Idearc Employee on the Distribution Date shall vest and become immediately exercisable upon the
Distribution Date, and will remain exercisable until the earlier of (i) 5 years following the Distribution Date or (ii) the expiration of the stated term of the Original Option. The exercise price and number of shares subject to each
Remaining Option shall be adjusted pursuant to the terms of the applicable Verizon Plan but in a manner consistent with the requirements of Section 424 of the Code. As a result, the Remaining Option shall be adjusted in accordance with clauses
(A) and (B) below (to be interpreted and applied in such a way as to minimize any adverse consequences from any possible application of FAS 123R and Section 409A of the Code to such conversions): 
 (a) the number of shares of Verizon Common Stock subject to such Remaining Option shall be equal to the product of (x) the number of
shares of Verizon Common Stock subject to the corresponding Original Option immediately prior to the Distribution Date and (y) the Verizon Share Ratio, with fractional shares rounded down to the nearest whole share and 
 (b) the per-share exercise price of such Remaining Option shall be equal to the product of (x) the per-share exercise price of the
corresponding 
  

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 Original Option immediately prior to the Distribution Date and (y) the Verizon Share Ratio, rounded
up to the nearest whole cent. 
 Section 8.3. Treatment of Outstanding Verizon RSU and PSU Awards. 
 (a) Generally. Each individual who holds an Outstanding Award that is a restricted stock unit (each, an “RSU”) or a Performance
Share Unit (each, a “PSU”) that relates to Verizon Common Stock and that was granted under a Verizon Plan, shall continue to hold such RSU or PSU after the Distribution Date under such Verizon Plan, provided that with respect to
each such outstanding award, there shall be credited on behalf of each holder thereof a dividend equivalent amount equal to the opening cash value, on the day following the completion of the Distribution, of the number of shares of Idearc Common
Stock that would have been distributed to such holders had each such RSU or PSU award been outstanding shares of Verizon Common Stock. 
 (b)
Deferral Elections. Each and every deferral election made by any Idearc Employee with respect to any RSU or PSU shall be cancelled in order to avoid any potential adverse taxation to the recipient thereof under Section 409A of the Code.

 (c) Performance Conditions/Board Approval. Notwithstanding anything else contained herein to the contrary, nothing in this
Section 8 shall be construed or interpreted to modify, waive, eliminate or otherwise alter any performance conditions required to be satisfied for an Idearc Employee or employee of any member of the Verizon Group to become vested in any
Outstanding Award (including, but not limited to, any PSU). Moreover, any requirement for approval by the Verizon Board or a duly authorized committee thereof of the level of achievement against any such performance restrictions applicable to such
Outstanding Award shall continue to apply on the same basis as they did prior to the Distribution Date. 
 (d) Vesting of PSUs. If the
Distribution Date occurs on or prior to December 31, 2006, the 2004 PSUs held by Idearc Employees will vest on a pro-rated basis based on the ratio of the period of the recipient’s employment with Verizon through the Distribution Date to
the 36-month period ending December 31, 2006. If the Distribution Date occurs after December 31, 2006, the 2004 PSU award will be payable in accordance with its terms, without regard to the spin-off of Idearc. In either case, any payment
in respect of the 2004 PSU award will be made in the ordinary course during the first 75 days of the first quarter of 2007. 
 Any 2005 PSU
or any Restricted Stock Unit granted by Verizon in the 2005 calendar year that is held by an Idearc Employee on the Distribution Date shall immediately vest in full on the Distribution Date, and any 2006 PSU or any Restricted Stock Unit granted by
Verizon in the 2006 calendar year that is held by an Idearc Employee shall immediately vest in full on the Distribution Date, subject, if applicable, to the achievement of any applicable performance criteria and the approval thereof by the

  

 24 

 Verizon Board or a duly authorized committee thereof. Each such award will be paid in the ordinary course during the
first 75 days of the first quarter of the calendar year next following the end of the applicable performance period for which, and subject to the extent to which, it is earned. 
 Any Outstanding Award that is a chairman’s award will be treated in substantially the same manner and subject to substantially the same conditions
outlined above with respect to annual RSU grants (that is, each such chairman’s award will be appropriately adjusted to reflect the distribution of Idearc, will be deemed immediately vested on the Distribution Date and will be paid promptly on
the regularly scheduled payment date). 
 ARTICLE IX. 
 SHORT TERM INCENTIVES AND 
 SALES COMMISSION PROGRAMS 
 Section 9.1. Incentive and Commission Plans. All Liabilities relating to Idearc Individuals under each Short Term Incentive Plan or Sales
Commission Plan shall cease to be Liabilities of the Verizon Group and shall be assumed in full and in all respects by Idearc, as of the Distribution Date. If the Distribution Date occurs prior to December 31, 2006, Idearc Group shall continue
each Short Term Incentive Plan and each Sales Commission Plan in effect as of the Distribution Date, until December 31, 2006. 
 ARTICLE
X. 
 DEFERRED COMPENSATION PLANS 
 Section 10.1. Generally. Verizon shall retain all Liabilities for any benefits accrued by Idearc Individuals under the EDP and IDP. 
 Section 10.2. Vesting and Payout of Balances. All unvested account balances under the EDP and IDP shall vest upon the Distribution Date. For purposes of the EDP and IDP only, the Distribution Date shall be
considered a separation event and a termination of employment from the Verizon Group. Any Idearc Employee who elected to receive a payout of an account balance upon a termination of employment, shall be paid out such account in accordance with the
terms of the relevant plan. Notwithstanding the foregoing, any and all distributions from the EDP and IDP shall, to the extent applicable, be administered in a manner consistent with the provisions of Section 409A of the Code and the
regulations promulgated thereunder. 
  

 25 

 ARTICLE XI. 
 CERTAIN TAX MATTERS 
 Section 11.1. Certain Tax Matters. Verizon and Idearc hereby agree that,
for purposes of social security, unemployment and other U.S. payroll taxes and to the extent legally permissible, Idearc shall be treated as a successor employer with respect to each Idearc Individual in the calendar year that contains the Effective
Date. In connection with the foregoing, the parties agree to follow the “Alternative Procedures” set forth in Section 5 of Revenue Procedure 2004-53. The parties understand and agree that Idearc, as the successor employer, shall
assume the entire Form W-2 reporting obligations for such Idearc Employees for the calendar year that contains the Effective Date, provided that Verizon shall provide reasonable assistance to Idearc in completing such reporting obligations.

 ARTICLE XII. 
 GENERAL AND
ADMINISTRATIVE 
 Section 12.1. Sharing of Information. Subject to any consents required or any other restrictions imposed at
law, Idearc and Verizon shall each provide to the other Party and its agents and vendors all information as the other Party may reasonably request to enable the requesting party to administer efficiently and accurately each of its Plans and to
determine the scope of, and to fulfill, its obligations under this Agreement. Any information shared or exchange pursuant to this Agreement shall be subject to the same confidentiality requirements set forth in the Distribution Agreement.

 Section 12.2. Cooperation. Each of the Parties hereto will use its commercially reasonable efforts to promptly take, or cause
to be taken, any and all actions and to do, or cause to be done, any and all things necessary proper and advisable under applicable laws and regulations to consummate the transactions contemplated by this Agreement, including without limitation,
adopting plans or plan amendments. Each of the Parties hereto shall cooperate fully on any issue relating to the transactions contemplated by this Agreement for which the other Party seeks a determination letter or any other filing, consent, or
approval with respect to governmental authorities. 
 Section 12.3. Consent of Third Parties. If any provision of this Agreement
is dependent on the consent of any third party (such as a vendor) and such consent is withheld, the Parties shall use their reasonable best efforts to implement the applicable provisions of this Agreement to the full extent practicable. If any
provision of this Agreement cannot be implemented due to the failure of such third party to consent, the Parties shall negotiate in good faith to implement the provision in a mutually satisfactory manner. The phrase “reasonable best
efforts” as used in this Agreement shall not be 
  

 26 

 construed to require the incurrence of any non routine or unreasonable expense or liability or the waiver of any right.

 Section 12.4. Survival. This Agreement shall survive the Distribution Date. 
 Section 12.5. Interpretation. Words in the singular shall be held to include the plural and vice versa and words of one gender shall be held
to include the other genders as the context requires. The terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole
(including all Exhibits hereto) and not to any particular provision of this Agreement. The word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context
otherwise requires or unless otherwise specified. The word “or” shall not be exclusive. 
 Section 12.6. No Third Party
Beneficiary. 
 (a) Nothing in this Agreement shall confer upon any person (nor any beneficiary thereof) any rights under or with respect
to any plan, program or arrangement described in or contemplated by this Agreement and each person (and any beneficiary thereof) shall be entitled to look only to the express terms of any such plan, program or arrangement for his or her rights
thereunder. 
 (b) Nothing in this Agreement shall create any right of any Person to object or to refuse to assent to Idearc’s
assumption of, succession to or creation of any Individual Agreement, or other agreement or plan, program or arrangement relating to employment, employment separation, severance or employee benefits, nor shall this Agreement be construed as
recognizing that any such rights exist. 
 (c) Nothing in this Agreement shall amend or shall be construed to amend any plan, program or
arrangement described in or contemplated by this Agreement. 
 Section 12.7. Notices. Any notice, demand, claim, or other
communication under this Agreement shall be in writing and shall be deemed given to a Party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier services (costs prepaid); (b) sent by facsimile
with conformation or transmission; (c) received or rejected by the addressee, if sent by certified mail, return receipt requested, in each case to the following addresses and facsimile numbers and marked to the attention of the person
designated below (or to such other address, facsimile number or person as a party may designate by notice to the other Parties: 
 (a) If to
Verizon, to: 
 Verizon 
 140 West
Street, 29th Floor 
  

 27 

 New York, NY 10007 
 Attn: EVP Human Resources 
 Fax # 908-766-3847 
 With Copies to: 
 Verizon 
 One Verizon Way, Building 5 
 Basking Ridge,
NJ 07920 
 Attn: Vice President and Associate General Counsel – Benefits 
 Fax # (908) 630-0340 
 And 

Verizon 
 One Verizon Way, VC54S404

 Basking Ridge, NJ 07920 
 Attn: Philip Marx 
 Fax # 908-696-2067 
 And 
 Debevoise & Plimpton LLP 
 919 Third Avenue 
 New York, NY 10022-3902

 Attn: Lawrence Cagney 
 Fax #
212-909-6836 
  

	 	(b)	If to Idearc, to: 

 Idearc Media Corp. 
 2200 West Airfield Drive 
 DFW Airport, TX
75261 
 Attn: William G. Mundy 
 Fax # 972-453-6829 
 With copies to: 
  

 28 

 Fulbright & Jaworski, LLP 
 2200 Ross Avenue, Suite 2800 
 Dallas, Texas
75201 
 Attn: Glen Hettinger 
 Fax # 214-855-8200 
 Section 12.8. Governing Law; Jurisdiction. This Agreement and the legal relations between the
parties hereto shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflict of laws rules thereof to the extent such rules would require the application of the law of another jurisdiction.
The state or federal courts located within the City of New York shall have exclusive jurisdiction over any and all disputes between the parties hereto, whether in law or equity, arising out of or relating to this agreement and the agreements,
instruments and documents contemplated hereby and the parties consent to and agree to submit to the exclusive jurisdiction of such courts. Each of the Parties hereby waives and agrees not to assert in any such dispute, to the fullest extent
permitted by applicable law, any claim that (i) such Party is not personally subject to the jurisdiction of such courts, (ii) such party and such Party’s property is immune from any legal process issued by such courts or
(iii) any litigation or other proceeding commenced in such courts is brought in an inconvenient forum. 
 Section 12.9. Waiver
of Jury Trial. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER RELATED
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
 Section 12.10. Specific Performance. The parties hereto agree
that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the terms hereof and that, after the Distribution, the parties shall be entitled to specific performance of the terms hereof to the
extent such terms impose obligations that are to be performed after the Distribution, in addition to any other remedy at law or in equity. 
 Section 12.11. No Assignment; No Amendment; Counterparts. This Agreement may not be assigned by either Party (except by operation of law) without the written consent of the other, and shall bind and inure to the benefit of the
Parties hereto and their respective successors and permitted assignees. This Agreement may not be amended or supplemented except by an agreement in writing signed by Verizon and Idearc. This Agreement may be executed in counterparts, each of which
shall be deemed an original and all of which together shall constitute one and the same instrument. 
  

 29 

 IN WITNESS WHEREOF, each Party has caused its dully authorized officer to execute this Agreement, as of
the date first written above. 
  

			
	VERIZON COMMUNICATIONS INC.
	
	 /s/ John W. Diercksen
  

	By:	 	John W. Diercksen
	Its:	 	Executive Vice President
	
	IDEARC INC.
	
	 /s/ Katherine J. Harless
  

	By:	 	Katherine J. Harless
	Its:	 	President

  

 30

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