Document:

Form of Tax Sharing Agreement

 Exhibit 10.9 
 TAX SHARING AGREEMENT 
 This Tax Sharing Agreement (this “Agreement”) is entered into as of
                    , 2006 between Verizon Communications Inc., a Delaware corporation (“Verizon”), and Idearc Inc., a Delaware corporation
and wholly owned subsidiary of Verizon (“Spinco” and together with Verizon, the “Parties”). Capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings ascribed to such terms in the
Distribution Agreement, dated as of                     , 2006, between Verizon and Spinco (the “Distribution Agreement”). 
 RECITALS 
 Whereas, Verizon is the common
parent corporation of an affiliated group of corporations within the meaning of Section 1504(a) of the Internal Revenue Code of 1986, as amended (the “Code”), that has filed consolidated federal income tax returns. 
 Whereas, Spinco is a newly-formed, wholly owned subsidiary of Verizon. 
 Whereas, pursuant to the Distribution Agreement, among other things, Verizon will transfer to Spinco all of the Spinco Assets, Spinco will assume all of the Spinco Liabilities, and Spinco will issue to Verizon shares
of Spinco Common Stock and the Spinco Exchange Debt and will pay to Verizon the Special Distribution (collectively, the “Contribution”). 
 Whereas, on the Distribution Date, Verizon will distribute all of the issued and outstanding shares of Spinco Common Stock on a pro rata basis to holders of Verizon Common Stock (the “Distribution”). 
 Whereas, the Parties intend that the Contribution, together with the Distribution and the Debt Exchange, qualifies as a reorganization under
Section 368 of the Code. 
 Whereas, the Parties desire to set forth their rights and obligations with respect to Taxes (as defined
herein) due for periods before and after the Distribution Date. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 1.01 GENERAL. As used in this
Agreement, the following terms shall have the following meanings: 
 “Affiliate” shall have the meaning set forth in the Distribution Agreement.

 “Agreement” shall have the meaning set forth in the preamble to this Agreement. 
 “Code” shall have the meaning set forth in the recitals. 

 “Contribution” shall have the meaning set forth in the recitals. 
 “Credit Agreement” shall mean the Credit Agreement dated as of
                    , 2006, among Spinco, the Lenders (as defined therein) and JPMorgan Chase Bank, N.A., as administrative agent and collateral
agent for such lenders. 
 “Debt Exchange” shall have the meaning set forth in the Distribution Agreement. 
 “Directories” shall have the meaning set forth in the Ruling Request. 
 “Dispute” shall have the meaning set forth in Article VIII. 
 “Distribution” shall have the meaning set forth in the recitals.

 “Distribution Agreement” shall have the meaning set forth in the preamble to this Agreement. 
 “Distribution Date” shall mean the date on which the Distribution shall become effective. 
 “Final Determination” shall mean a determination within the meaning of Section 1313 of the Code or any similar provision of state or local Tax law. 
 “Governmental Authority” shall have the meaning set forth in the Distribution Agreement. 
 “Indemnifiable Losses” shall have the meaning set forth in the Distribution Agreement. 
 “Indenture”
shall mean the Indenture dated as of                     , 2006, among Spinco, the initial Subsidiary Guarantors (as defined therein) and U.S. Bank,
National Association, as Trustee. 
 “Parties” shall have the meaning set forth in the preamble to this Agreement. 
 “Person” shall have the meaning set forth in the Distribution Agreement. 
 “Post-Distribution Period” shall mean any taxable year or other taxable period beginning after the Distribution Date and, in the case of any taxable year or other taxable period that begins before and ends after the Distribution
Date, that part of the taxable year or other taxable period that begins at the beginning of the day after the Distribution Date. 
 “Pre-Distribution
Period” shall mean any taxable year or other taxable period that ends on or before the Distribution Date and, in the case of any taxable year or other taxable period that begins before and ends after the Distribution Date, that part of the
taxable year or other taxable period through the close of the Distribution Date. 
 “Preliminary Restructuring” shall have the meaning set forth in
the Distribution Agreement. 
 “Prohibited Acts” shall have the meaning set forth in Section 3.02. 
 “Ruling” shall have the meaning set forth in Section 2.01(b). 
  

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 “Ruling Request” shall mean the request for rulings submitted by Verizon to the Internal Revenue Service on
June 14, 2006, including the exhibits attached thereto, and all related supplements. 
 “Senior Notes” shall mean the Senior Notes issued
under the Indenture. 
 “Special Distribution” shall have the meaning set forth in the Distribution Agreement. 
 “Spinco” shall have the meaning set forth in the preamble to this Agreement. 
 “Spinco Assets” shall have the meaning set forth in the Distribution Agreement. 
 “Spinco Business”
shall have the meaning set forth in the Distribution Agreement. 
 “Spinco Common Stock” shall have the meaning set forth in the Distribution
Agreement. 
 “Spinco Exchange Debt” shall have the meaning set forth in the Distribution Agreement. 
 “Spinco Filed Tax Return” shall have the meaning set forth in Section 2.01(b). 
 “Spinco Group” shall have the meaning set forth in the Distribution Agreement. 
 “Spinco Liabilities”
shall have the meaning set forth in the Distribution Agreement. 
 “Spinco Taxes” shall have the meaning set forth in Section 2.03(a).

 “Subsidiary” shall have the meaning set forth in the Distribution Agreement. 
 “Taxes” shall mean (i) all taxes, charges, fees, duties, levies, imposts, rates or other assessments or governmental charges of any kind imposed by any federal, state, local or foreign Governmental
Authority, including, without limitation, income, gross receipts, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, custom duties, property, sales, use, license, capital stock, transfer, franchise,
registration, payroll, withholding, social security, unemployment, disability, value added, alternative or add-on minimum or other taxes, whether disputed or not, and including any interest, penalties, charges or additions attributable thereto,
(ii) liability for the payment of any amount of the type described in clause (i) above arising as a result of being (or having been) a member of any group or being (or having been) included or required to be included in any Tax Return
related thereto, and (iii) liability for the payment of any amount of the type described in clauses (i) or (ii) above as a result of any express or implied obligation to indemnify or otherwise assume or succeed to the liability of any
other Person. 
 “Tax Advisor” shall have the meaning set forth in Article VIII. 
 “Tax Benefit” shall mean the sum of the amount by which the Tax liability of a corporation or affiliated group (within the meaning of Section 1504(a) of
the Code) or other relevant group of corporations to the appropriate Governmental Authority is reduced (including by deduction, entitlement to refund, credit or otherwise, whether available in the current taxable year, as an adjustment to taxable
income in any other taxable year or as a carryforward or carryback, as applicable) plus any interest from such Governmental Authority relating to such Tax liability. 
  

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 “Tax Certificates” shall mean certificates of officers of Verizon and Spinco, dated as of
                    , 2006, provided to Verizon’s counsel in connection with the Tax Opinion. 
 “Tax Contest” shall have the meaning set forth in Section 5.01. 
 “Tax Information Packages” shall mean any information required in order to prepare and file any Verizon Filed Tax Return. 
 “Tax
Materials” shall have the meaning set forth in Section 3.01(a). 
 “Tax Opinion” shall mean the written opinion of Skadden, Arps, Slate,
Meagher & Flom LLP, dated as of                     , 2006, regarding certain United States federal income tax consequences of the
Preliminary Restructuring, the Distribution, the Debt Exchange and other transactions associated therewith as described in the Ruling or the Distribution Agreement. 
 “Tax Return” shall mean any return, report, certificate, form or similar statement or document (including any related supporting information or schedule attached thereto and any information return, amended
tax return, claim for refund or declaration of estimated tax) required to be supplied to, or filed with, a Governmental Authority in connection with the determination, assessment or collection of any Tax or the administration of any laws,
regulations or administrative requirements relating to any Tax. 
 “Tranche B Term Loan” shall have the meaning set forth in the Credit Agreement.

 “Transaction Agreements” shall have the meaning set forth in the Distribution Agreement. 
 “Verizon” shall have the meaning set forth in the preamble to this Agreement. 
 “Verizon Filed Tax Return” shall have the meaning set forth in Section 2.01(a). 
 “Verizon Group”
shall have the meaning set forth in the Distribution Agreement. 
 “Verizon Taxes” shall have the meaning set forth in Section 2.03(b).

 “VIS” shall have the meaning set forth in the Credit Agreement. 
 1.02 INTERPRETATION. For all purposes of this Agreement: (i) the terms defined in this Agreement include the plural as well as the singular; (ii) all references in this Agreement to “Preamble”,
“Recitals”, “Articles”, “Sections” and other subdivisions are to the designated Preamble, Recitals, Articles, Sections and other subdivisions of the body of this Agreement; (iii) pronouns of either gender or neuter
include, as appropriate, the other pronoun forms; (iv) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or
other subdivision; (v) “or” is not exclusive; (vi) “including” shall be deemed to be followed by “but not limited to”; and (vii) any definition of or reference to any statute shall be construed as
referring also to any rules and regulations promulgated thereunder. 
  

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 ARTICLE II. 
 TAX RETURNS AND TAX PAYMENTS 
 2.01 OBLIGATIONS TO FILE TAX RETURNS. 
 (a) Verizon shall have the sole and exclusive responsibility for the preparation and filing of each Tax Return that (1) includes any member of the
Verizon Group or the Spinco Group and that is required to be filed before or on the Distribution Date or (2) includes any member of the Verizon Group and that is required to be filed after the Distribution Date (each, a “Verizon Filed Tax
Return”); provided, however, that (x) Spinco shall promptly prepare and deliver to Verizon in a manner consistent with past practices pro forma Tax Returns and Tax Information Packages for any taxable period in which any member of the
Spinco Group is included in, or any portion of the Spinco Business is reflected on, a Verizon Filed Tax Return, (y) Verizon shall provide to Spinco sufficiently in advance of the due date for the filing thereof, and Spinco shall have a
reasonable opportunity to review and comment on, any such Verizon Filed Tax Return (or the relevant portion thereof) to the extent that Spinco is responsible for any portion of the Taxes reported on such Verizon Filed Tax Return, and (z) in the
case of any Verizon Filed Tax Return that includes any member of the Spinco Group or the Spinco Business only for the portion of the relevant taxable period that ends on the Distribution Date, Taxes shall be allocated to the portion of such taxable
period that ends on the Distribution Date based on an actual or hypothetical closing of the books at the close of the Distribution Date. Each member of the Spinco Group hereby irrevocably authorizes and designates Verizon as its agent, coordinator
and administrator for the purpose of taking any and all actions necessary or incidental to the filing of any such Verizon Filed Tax Returns and, except as otherwise provided herein, for the purpose of making payments to, or collecting refunds from,
any Governmental Authority in respect of a Verizon Filed Tax Return. Except as otherwise provided herein, Verizon shall have the exclusive right to file, prosecute, compromise or settle any claim for, or refund of, Taxes in respect of a Verizon
Filed Tax Return for which Verizon bears responsibility hereunder and to determine whether any refunds of Taxes to which the Verizon Group may be entitled shall be received by way of refund or credit against the Tax liability of the Verizon Group.

 (b) Spinco shall have the sole and exclusive responsibility for the preparation and filing of each Tax Return that is required to be filed
after the Distribution Date that includes any member of the Spinco Group or otherwise relates to the Spinco Business that is not a Verizon Filed Tax Return (each, a “Spinco Filed Tax Return”); provided, however, that, except as otherwise
required by law, (1) all Spinco Filed Tax Returns shall be prepared on a basis that is consistent with the Tax Opinion and the private letter ruling with respect to, among other things, the Contribution, the Distribution and the Debt Exchange
received by Verizon on September 25, 2006 (the “Ruling”) and consistent with past practices of Verizon, (2) Spinco shall provide to Verizon sufficiently in advance of the due date for the filing thereof, and Verizon shall have a
reasonable opportunity to review and comment on, any such Spinco Filed Tax Return (or the relevant portion thereof) to the extent that Verizon is responsible for any portion of the Taxes reported on such Spinco Filed Tax Return and (3) in the
case of any Spinco Filed Tax Return that 
  

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 includes any member of the Spinco Group or the Spinco Business only for the portion of the relevant taxable period that
begins after the Distribution Date, Taxes shall be allocated to the portion of such taxable period that begins after the Distribution Date based on an actual or hypothetical closing of the books at the close of the Distribution Date. 
 2.02 OBLIGATION TO REMIT TAXES. Subject to Section 2.01 and subject always to the ultimate division of responsibility for Taxes set out in
Section 2.03, Verizon and Spinco shall each remit or cause to be remitted to the applicable Governmental Authority in a timely manner any Taxes due in respect of any Tax Return that such Party is required to file (or, in the case of a Tax for
which no Tax Return is required to be filed, which is otherwise payable by such Party or a member of such Party’s group (the Verizon Group or the Spinco Group) to any Governmental Authority); provided, however, that in the case of any Tax
Return, the Party not required to file such Tax Return shall remit to the Party required to file such Tax Return in immediately available funds the amount of any Taxes reflected on such Tax Return for which the former Party is responsible hereunder
at least two (2) Business Days before payment of the relevant amount is due to a Governmental Authority. 
 2.03 TAX SHARING OBLIGATIONS
AND PRIOR AGREEMENTS. 
 (a) Spinco and the members of the Spinco Group shall be responsible for the payment of (and shall be entitled to any
refund of or credit for) all Taxes (i) that are attributable to any member of the Spinco Group or the Spinco Business for any taxable period, including, for purposes of clarification, any taxable period that ended prior to the Distribution
Date, as determined in accordance with Schedule A, (ii) resulting from the Preliminary Restructuring, the Distribution, the Debt Exchange or any transaction associated therewith as described in the Ruling or the Distribution Agreement, to the
extent that such Taxes arise as a result of any action taken by Spinco or any member of the Spinco Group following the Distribution (other than, in the case of the Tranche B Term Loan, the repayment thereof prior to the stated maturity in accordance
with Section 2.10(b) of the Credit Agreement), or (iii) resulting from any breach of or inaccuracy in any representation, covenant or obligation of any member of the Spinco Group under this Agreement (collectively, “Spinco
Taxes”). 
 (b) Verizon and the members of the Verizon Group shall be responsible for the payment of (and shall be entitled to any
refund of or credit for) all Taxes that are not Spinco Taxes (collectively, “Verizon Taxes”). 
 (c) Notwithstanding anything else
to the contrary contained herein or in any other Transaction Agreement and notwithstanding whether any such Tax Benefits are realized on Verizon Filed Tax Returns or Spinco Filed Tax Returns, the Parties agree to allocate the Tax Benefits set forth
on Schedule B in accordance therewith. 
 (d) Except as set forth in this Agreement and in consideration of the mutual indemnities and other
obligations of this Agreement, any and all prior Tax sharing or allocation agreements or practices between any member of the Verizon Group and any member of the Spinco Group shall be terminated with respect to the Spinco Group as of the Distribution
Date, and no member of the Spinco Group shall have any continuing rights or obligations thereunder. 
  

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 (e) A Party receiving a refund to which another Party is entitled pursuant to this Agreement shall pay
the amount to which such other Party is entitled within ten (10) Business Days after the receipt of the refund. 
 2.04 AMENDED RETURNS.
Spinco shall not, and shall not permit any member of the Spinco Group to, file any amended Tax Return that includes any member of the Verizon Group. 
 ARTICLE III. 
 REPRESENTATIONS AND COVENANTS 
 3.01 COMPLIANCE WITH THE RULING AND TAX OPINION. 
 (a) Verizon (on behalf of itself and all other members of
the Verizon Group) hereby represents and warrants that (i) it has examined (A) the Ruling, (B) the Tax Opinion, (C) the Ruling Request, (D) the Tax Certificates and (E) any other materials delivered or deliverable in
connection with the issuance of the Ruling and the rendering of the Tax Opinion (collectively, the “Tax Materials”) and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to
Verizon or any member of the Verizon Group, are or will be from the time presented or made through and including the Distribution Date true, correct and complete in all material respects. Verizon (on behalf of itself and all other members of the
Verizon Group) hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Material applicable to Verizon or any member of the Verizon Group. 
 (b) Spinco (on behalf of itself and all other members of the Spinco Group) hereby represents and warrants that (i) it has examined the Tax Materials
and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to Spinco or any member of the Spinco Group, are or will be from the time presented or made through and including the Distribution
Date true, correct and complete in all material respects. Spinco (on behalf of itself and all other members of the Spinco Group) hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Material applicable to Spinco
or any member of the Spinco Group. 
 3.02 OPINION REQUIREMENT FOR MAJOR TRANSACTIONS. Spinco (on behalf of itself and all other members of
the Spinco Group) hereby confirms and agrees that no member of the Spinco Group will take or permit to be taken within 2 years of the Distribution the following actions: (i) the issuance of any Spinco equity or rights to acquire any Spinco
equity (other than any such issuance qualifying under a Treas. Reg. § 1.355-7(d) “safe harbor” such as an issuance in connection with the performance of services within the meaning of Treas. Reg. 1.355-7(d)(8)); (ii) redemptions
or repurchases of any Spinco equity (except to the extent consistent with the requirements of Rev. Proc. 96-30), (iii) recapitalizations or other dispositions of, or modifications to the terms of, any Spinco equity; (iv) any liquidation,
merger or consolidation involving Spinco, VIS or Directories (including, for purposes of clarification, the conversion of Spinco or Directories into a limited liability company or the conversion of VIS into a corporation); (v) any sale of all
or substantially all of Spinco’s assets in a single transaction or series of related transactions; (vi) the disposition or discontinuance of the operation of any 
  

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 active trade or business assets except in the ordinary course of business; (vii) entering into any negotiations,
agreements or arrangements that may cause the Distribution to be treated as part of a plan or series of related transactions pursuant to which one or more persons acquire directly or indirectly stock of Spinco representing a “50-percent or
greater interest” therein within the meaning of Section 355(d)(4) of the Code; or (viii) the taking of actions or positions inconsistent with any representation or covenant of Spinco or any member of the Spinco Group contained in
Section 3.01(b) or Section 6.02 of this Agreement (collectively, the “Prohibited Acts”). Notwithstanding the foregoing, Spinco or a member of the Spinco Group may take any of the Prohibited Acts, subject to, and without limiting
or modifying, Spinco’s continuing indemnification obligation under Section 4.01(b), if Spinco obtains (x) the written consent of Verizon (which consent may be given or withheld in Verizon’s sole discretion) or (y) a
supplemental ruling from the Internal Revenue Service or an opinion of a nationally recognized law firm, in form and substance reasonably satisfactory to Verizon, that the taking of such action will not adversely affect, directly or indirectly, any
of the conclusions contained in the Ruling or the Tax Opinion. 
 3.03 ADDITIONAL SPINCO COVENANTS. Notwithstanding anything else to the
contrary contained in this Agreement or any other agreement, Spinco (on behalf of itself and all other members of the Spinco Group) hereby confirms and agrees that (i) neither Spinco nor any member of the Spinco Group will, directly or
indirectly, pre-pay, pay down, redeem, retire or otherwise acquire, however effected, any of the Senior Notes or the Tranche B Term Loan prior to its stated maturity, (ii) neither Spinco nor any member of the Spinco Group will take or permit to
be taken any action at any time, including, without limitation, any modification to the terms of any of the Senior Notes or the Tranche B Term Loan, that could jeopardize, directly or indirectly, the qualification, in whole or in part, of any of the
Senior Notes or the Tranche B Term Loan as “securities” within the meaning of Section 361(a) of the Code, (iii) no issuance of stock by Spinco, any member of the Spinco Group, or any Affiliates thereof and no change in the stock
ownership of any such entities will occur that could cause Section 355(d) or Section 355(e) of the Code to apply to the Distribution, and (iv) neither Spinco nor any member of the Spinco Group will take or permit to be taken any
action at any time that could jeopardize, directly or indirectly, any of the conclusions contained in the Ruling or the Tax Opinion. Notwithstanding the foregoing, Spinco or a member of the Spinco Group may take or permit to be taken any of the
actions described in this Section 3.03, subject to, and without limiting or modifying, Spinco’s continuing indemnification obligation under Section 4.01(b), if (x) failure to take such action would violate the Credit Agreement,
the Indenture or any of the documents entered into in connection therewith (each as executed as of the Distribution Date), (y) Spinco obtains the written consent of Verizon (which consent may be given or withheld in Verizon’s sole
discretion) or (z) Spinco obtains a supplemental ruling from the Internal Revenue Service or an opinion of a nationally recognized law firm, in form and substance reasonably satisfactory to Verizon, that the taking of such action will not
adversely affect, directly or indirectly, any of the conclusions contained in the Ruling or the Tax Opinion. 
 3.04 VERIZON COVENANTS.
Notwithstanding anything else to the contrary contained in this Agreement or any other agreement, Verizon (on behalf of itself and all other members of the Verizon Group) hereby confirms and agrees that neither Verizon nor any member of the Verizon
Group will take or permit to be taken any action at any time that could jeopardize, directly or indirectly, any of the conclusions contained in the Ruling or the Tax Opinion. 
  

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 ARTICLE IV. 
 INDEMNITY OBLIGATIONS AND PAYMENTS 
 4.01 INDEMNITY OBLIGATIONS. 
 (a) Verizon shall indemnify and hold harmless Spinco from and against, and will reimburse Spinco for (i) all Verizon Taxes and (ii) all Taxes
and Indemnifiable Losses arising out of, based upon or relating or attributable to any breach of or inaccuracy in any representation, covenant or obligation of any member of the Verizon Group under this Agreement. 
 (b) Notwithstanding whether any action is permitted or consented to hereunder and notwithstanding anything else to the contrary contained herein, Spinco
shall indemnify and hold harmless Verizon from and against, and will reimburse Verizon for (i) all Spinco Taxes and (ii) all Taxes and Indemnifiable Losses arising out of, based upon or relating or attributable to (x) any breach of or
inaccuracy in any representation, covenant or obligation of any member of the Spinco Group under this Agreement or (y) the Preliminary Restructuring, the Distribution, the Debt Exchange or any transaction associated therewith as described in
the Ruling or the Distribution Agreement, to the extent such Taxes or Indemnifiable Losses arise as a result of any action taken by Spinco or any member of the Spinco Group following the Distribution (other than, in the case of the Tranche B Term
Loan, the repayment thereof prior to the stated maturity in accordance with Section 2.10(b) of the Credit Agreement). 
 4.02 NOTICE.
The Parties shall give each other prompt written notice of any payment that may be due to the provider of such notice under this Agreement. 
 4.03 TREATMENT OF PAYMENTS. The Parties agree that any payment made between the Parties pursuant to this Agreement or any other Transaction Agreement with respect to a Pre-Distribution Period or as a result of an event or action occurring
in a Pre-Distribution Period shall be treated, to the extent permitted by law, for all Tax purposes as a nontaxable payment (i.e., a distribution or a capital contribution) made immediately prior to the Distribution. 
 ARTICLE V. 
 TAX CONTESTS 
 5.01 NOTICE. Verizon shall promptly notify Spinco in writing upon receipt by Verizon or any member of the Verizon Group of a written communication from
any Governmental Authority with respect to any pending or threatened audit, dispute, suit, action, proposed assessment or other proceeding (a “Tax Contest”) concerning any Taxes for which Spinco may be liable under this Agreement. Spinco
shall promptly notify Verizon in writing upon receipt by Spinco or any member of the Spinco Group of a written communication from any Governmental Authority with respect to any Tax Contest concerning any Taxes for which Verizon may be liable under
this Agreement. 
  

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 5.02 CONTROL OF CONTESTS BY VERIZON. Verizon shall have the sole responsibility and control over the
handling of any Tax Contest, including the exclusive right to communicate with agents of the Governmental Authority and to control, resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or
as a result of any such Tax Contest, involving (i) any Verizon Filed Tax Return, or (ii) the Preliminary Restructuring, the Distribution, the Debt Exchange or any transaction associated therewith as described in the Ruling or the
Distribution Agreement. Subject to Verizon’s control right, upon request by Spinco, Spinco shall, at Spinco’s expense, be allowed to participate in the handling of any such Tax Contest with respect to any item that may affect the liability
of Spinco or any member of the Spinco Group under this Agreement. Notwithstanding anything else to the contrary contained herein, in the case of any such Tax Contest relating to Taxes for which the potential liability of Spinco or any member of the
Spinco Group under this Agreement equals or exceeds $200,000,000, (a) Verizon shall not settle any such Tax Contest without the consent of Spinco, which consent shall not be unreasonably withheld, conditioned or delayed, and (b) absent a
settlement of such Tax Contest pursuant to subclause (a) above, Verizon shall be required to pursue, at Spinco’s expense, such Tax Contest through one level of appellate judicial review (it being understood that Verizon shall have no
obligation to pursue such Tax Contest beyond one level of appellate judicial review). 
 5.03 CONTROL OF CONTESTS BY SPINCO. Spinco shall
have the full responsibility and control over the handling of any Tax Contest, including the exclusive right to communicate with agents of the Governmental Authority and to control, resolve, settle or agree to any deficiency, claim or adjustment
proposed, asserted or assessed in connection with or as a result of any such Tax Contest, involving any Spinco Filed Tax Return or any item thereon not described in Section 5.02. Subject to Spinco’s control right, upon request by Verizon,
Verizon shall, at Verizon’s expense, be allowed to participate in the handling of any such Tax Contest with respect to any item that may affect the liability of Verizon or any member of the Verizon Group under this Agreement. 
 ARTICLE VI. 
 COOPERATION 
 6.01 GENERAL. Each Party shall fully cooperate, and shall cause all members of such Party’s group (the Verizon Group or the Spinco Group) to fully
cooperate, with the other Party in connection with the preparation and filing of any Tax Return or the conduct of any Tax Contest (including, where appropriate or necessary, providing a power of attorney) concerning any issues or any other matter
contemplated under this Agreement. Each Party shall make its employees and facilities available on a mutually convenient basis to facilitate such cooperation. 
 6.02 CONSISTENT TREATMENT. Unless and until there has been a Final Determination to the contrary, each Party agrees not to take any position on any Tax Return, in connection with any Tax Contest or otherwise that is
inconsistent with (a) the allocation of Taxes and Tax Benefits between the Verizon Group and the Spinco Group as set forth in this Agreement, (b) the Ruling or (c) the Tax Opinion. 
  

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 ARTICLE VII. 
 RETENTION OF RECORDS; ACCESS 
 For so long as the contents thereof may become material in the administration
of any matter under applicable Tax law, but in any event until the later of (i) the expiration of any applicable statutes of limitation and (ii) seven years after the Distribution Date, the Parties shall (a) retain records, documents,
accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns in respect of Taxes of any member of either the Verizon Group or the Spinco Group for any Pre-Distribution Period or any
Post-Distribution Period or for any Tax Contests relating to such Tax Returns, and (b) give to the other Party reasonable access to such records, documents, accounting data and other information (including computer data) and to its personnel
(insuring their cooperation) and premises, for the purpose of the review or audit of such Tax Returns to the extent relevant to an obligation or liability of a Party under this Agreement or for purposes of the preparation or filing of any such Tax
Return, the conduct of any Tax Contest or any other matter reasonably and in good faith related to the Tax affairs of the requesting Party. At any time after the Distribution Date that the Verizon Group proposes to destroy such material or
information, it shall first notify the Spinco Group in writing and the Spinco Group shall be entitled to receive such materials or information proposed to be destroyed. At any time after the Distribution Date that the Spinco Group proposes to
destroy such material or information, it shall first notify the Verizon Group in writing and the Verizon Group shall be entitled to receive such materials or information proposed to be destroyed. 
 ARTICLE VIII. 
 DISPUTE RESOLUTION 

The Parties shall attempt in good faith to resolve any disagreement arising under this Agreement, including any dispute in connection with a claim by
a third party (a “Dispute”). Either Party may give the other Party written notice of any Dispute not resolved in the normal course of business. If such a Dispute is not resolved within sixty (60) days following the date on which one
Party gives such notice, the Parties shall jointly retain a nationally recognized law or accounting firm, reasonably acceptable to the Parties (the “Tax Advisor”), to act as an arbitrator in order to resolve the Dispute. The Tax
Advisor’s determination as to any Dispute shall be made in accordance with the terms of this Agreement and shall be final and binding on the Parties and not subject to collateral attack for any reason (other than manifest error). All fees and
expenses of the Tax Advisor shall be shared equally by Verizon, on the one hand, and Spinco, on the other hand. 
 ARTICLE IX. 
 MISCELLANEOUS PROVISIONS 
 9.01 GOVERNING
LAW. 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 New York, without regard to the conflict of laws rules thereof to the extent such rules would
require the application of the law of another jurisdiction. 
  

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 9.02 APPLICATION TO PRESENT AND FUTURE SUBSIDIARIES. This Agreement is being entered into by Verizon and
Spinco on behalf of themselves and the members of their respective groups (the Verizon Group and the Spinco Group). This Agreement shall constitute a direct obligation of each such entity and shall be deemed to have been readopted and affirmed on
behalf of any entity that becomes a Subsidiary of Verizon or Spinco in the future. 
 9.03 FURTHER ASSURANCES. Subject to the provisions
hereof, the Parties hereto shall make, execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the
transactions contemplated hereby. 
 9.04 SURVIVAL. Notwithstanding any other provision of this Agreement to the contrary, all
representations, covenants and obligations contained in this Agreement shall survive until the expiration of the applicable statute of limitations with respect to any such matter (including extensions thereof). 
 9.05 DISTRIBUTION AGREEMENT. To the extent not inconsistent with any specific term of this Agreement, the provisions of the Distribution Agreement shall
apply in relevant part to this Agreement, including Sections 5.5 (Reductions for Insurance Proceeds and Other Amounts), 5.7 (Consequential Damages), 8.1 (Complete Agreement), 8.3 (Interpretation), 8.4 (Notices), 8.5 (Amendments; Waivers), 8.6
(Successors and Assigns; No Third-Party Beneficiaries), 8.7 (Counterparts), 8.8 (Headings), 8.9 (Severability), and 8.11 (Terminability). 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

			
	VERIZON COMMUNICATIONS INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	IDEARC INC.
		
	By:	 	  

	Name:	 	
	Title:Form of Employee Matters Agreement

 Exhibit 10.10 
 EMPLOYEE MATTERS AGREEMENT 
 by and between 
 Verizon Communications Inc. 
 and 
 Idearc Inc. 
 dated as of
[                    ], 2006 

 Table of Contents 
  

					
	 	 	 	  	Page
	
	ARTICLE I.
	
	DEFINITIONS
			
	Section 1.1.	 	Definitions	  	1
			
	Section 1.2.	 	Capitalized Terms	  	7
	
	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.	  	15
			
	Section 4.2.	 	Terms of Participation by Idearc Individuals	  	15
			
	Section 4.3.	 	Transition Services	  	16

  

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 Table of Contents 
 (continued) 
  

					
	 	 	 	  	Page
	
	ARTICLE V.
	
	HEALTH AND WELFARE
			
	Section 5.1.	 	Assumption of Health and Welfare.	  	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	  	19
			
	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.	  	20
			
	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

  

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 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	  	28
			
	Section 12.9.	 	Waiver of Jury Trial	  	28
			
	Section 12.10.	 	Specific Performance	  	28
			
	Section 12.11.	 	No Assignment; No Amendment; Counterparts	  	29

  

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 Employee Matters Agreement 
 This Employee Matters Agreement (this “Agreement”), dated as of
                         , 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                          , 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. 
 “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. 
 “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. 
 “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. 
  

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 “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 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. 
 “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. 
  

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 “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” mean the Plans established by Idearc pursuant to Section 4.1 that correspond to the Verizon Welfare Plans.

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

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 “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 B of this Agreement. 
 “Short Term Incentive Plan” means the Plans listed on Annex C 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 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 
  

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 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. 
  

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

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 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 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 
  

 8 

 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 Idearc 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 Idearc 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. 
 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. 
  

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 (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 dependants 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 dependants 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 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. 
  

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 (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 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

  

 11 

 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. 
  

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 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.

  

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 (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 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.

  

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 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 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 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 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 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. 
  

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 Section 4.3. Transition Services. Verizon shall provide transition services to Idearc with
respect to the Idearc Mirror Plans and the Idearc Employees in accordance with the Transition Services Agreement. 
 ARTICLE V. 
 HEALTH AND WELFARE 
 Section 5.1.
Assumption of Health and Welfare. 
 (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 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 
  

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 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 a Verizon Welfare Plan during the same year in
which such payments were made. 
 (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 
  

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 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 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. Idearc 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. 
  

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 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 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, 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 shall assume sponsorship of and adopt the Idearc Trust. 
 Idearc shall be responsible for taking 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 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 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. 
  

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 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 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 Split Date. 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 used 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 certification 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 
  

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 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 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 investment return on the applicable amount determined in accordance with the Letter of Direction attached hereto as Exhibit A 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 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 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. 
  

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 (b) Effective as of the Distribution Date, Verizon shall cause the account balances (including any
outstanding loan balances) in the applicable Verizon Savings 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 
  

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 (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 Original Option immediately prior to the Distribution Date and (y) the Verizon Price 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 be eligible to vest in full on December 31, 2007, and any 2006 PSU or any Restricted Stock Unit granted
by Verizon in the 2006 calendar year that is held by an Idearc Employee 
  

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 shall be eligible to vest in full on December 31, 2008, subject, if applicable, to the achievement of any applicable
performance criteria and the approval thereof by the Verizon Board or a duly authorized committee thereof. Each such award will be paid in the ordinary course during the 75 days of the first quarter of the calendar year following the date on which,
and subject to the extent to which, it becomes vested. 
 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 vested on the last day of the originally scheduled restriction period and will be paid promptly after such scheduled vesting 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 construed to require the incurrence of any non routine or unreasonable expense or liability or the waiver of any right. 
  

 26 

 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: 
 With copies to: 
 Lawrence K. Cagney 
 Debevoise & Plimpton LLP 
 919 Third Avenue 
 New York, NY 10022 
  

 27 

 (b) If to Idearc, to: 
 With copies to: 
 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. 
  

 28 

 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. 
  

									
	Date:	 	                    	 		 	VERIZON COMMUNICATIONS INC.
				
		 		 		 	  

		 		 		 	By:	 	  

		 		 		 	Its:	 	  

				
	Date:	 	                    	 		 	IDEARC INC.
				
		 		 		 	  

		 		 		 	By:	 	  

		 		 		 	Its:	 	  

  

 30 

 Exhibit A 
 Letter of Direction 
 To: Verizon Investment Management Corp. 
 The undersigned, on behalf of Idearc Inc. in its capacity as Plan Sponsor and Fiduciary for the investment of the assets of the employee benefit plans of
Idearc Inc. and its affiliates, hereby directs you to cause Mellon Bank NA, (the “Verizon Pension Trustee”) in its capacity as Trustee of the Bell Atlantic Master Trust, (the “Verizon Pension Trust”) to transfer 90%
of the approximate Pension Plan Asset Transfer Amount, as that term is defined in that certain Employee Matters Agreement between Verizon Communications Inc. and Idearc Inc. (the “EMA”) calculated by the enrolled actuary of the
applicable Verizon Pension Plan from the Verizon Pension Plans to the Idearc Pension Plans in a manner described in this Letter of Direction. 
 You are further directed to cause the Verizon Pension Trustee to calculate the gain or loss on any assets that may be due the Idearc Pension Plans or that may be due the Verizon Pension Plans as described in Section 6.3(c)(ii) of the
EMA in a manner described in this Letter of Direction. 
 You are further directed to cause the Verizon Pension Trustee to transfer to, or to
receive from, the Idearc Pension Plans, the Final Asset Transfer as described in Section 6.3(c) (ii) of the EMA in a manner described in this Letter of Direction. 
 All capitalized terms in this letter that are included in the EMA shall have the same definitions as those terms have in the EMA unless the context
clearly indicates otherwise or unless otherwise specifically defined herein. 
 Idearc Management Pension Plan Initial Transfer Amount 
 You shall direct the Verizon Pension Trustee to create a memo account as of November 1, 2006 of the approximate Pension Plan Asset Transfer Amount
for the Idearc Management Pension Plan that shall be allocated as follows: 
  

	 	1.	25% to the Russell 1000 Value Index Fund Memo Account, valued in accordance with the Frank Russell 1000 Value Total Return Index 

  

	 	2.	25% to the Russell 1000 Growth Index Memo Account, valued in accordance with the Frank Russell 1000 Growth Total Return Index 

  

	 	3.	20% to the MSCI EAFE Cap Weighted Index Fund Memo Account, valued in accordance with the Morgan Stanley Capital International Inc. Europe, Australasia and Far East Market
Capitalization Weighted Index 

	 	4.	25% to the Lehman Aggregate Index Fund Memo Account, valued in accordance with the Lehman Aggregate Bond Fund Index 

  

	 	5.	5% to Cash Memo Account valued in accordance with the 90 Day Treasury Bill. 

 The above five accounts shall be collectively referred to herein as the “Memo Accounts”. For the period November 1, 2006 through the Distribution Date you shall cause the Verizon Pension Trustee to
calculate the gains and losses of the Memo Accounts in accordance with the gains and losses on the indexes or 90 Day Treasury Bill indicated above. 
 On (or as soon as practicable after) the Distribution Date, you shall cause the Verizon Pension Trustee to transfer to the Idearc Management Pension Plan assets equal to 90% of the amounts of each of the Memo Accounts indicated below valued
as of the close of business on the business day immediately preceding the distribution date, payable respectively from the asset accounts of (i) the Verizon Management Pension Plan and (ii) the Verizon Enterprises Management
Pension Plan (“VEMPP”) attributable to VEMPP participants who will become participants in the Idearc Management Pension Plan: 
  

	 	1.	Russell 1000 Value Index Fund Memo Account: VIMCO FR 1000 Value Account 

  

	 	2.	Russell 1000 Growth Index Fund Memo Account: VIMCO FR 1000 Growth Account 

  

	 	3.	MSCI GAFE Cap Weighted Index Fund Memo Account: Either cash to purchase units or units of the Mellon MSCI EAFE Cap Weighted Index Fund 

  

	 	4.	Lehman Aggregate Bond Index Fund Memo Account: Either cash to purchase units or units of the Mellon Lehman Aggregate Bond Index Fund 

  

	 	5.	5% to Cash Memo Account: Cash 

 Idearc Union Pension Plan Initial
Transfer Amount 
 On (or as soon as practicable after) the Distribution Date, you shall direct the Verizon Pension Trustee to transfer to
the Idearc Union Pension Plan assets equal to 90% of the approximate Pension Plan Asset Transfer Amount calculated by the enrolled actuary for each of the VEMPP (for Represented Employees), the Verizon Plan for Mid Atlantic Associates, and the
Verizon Plan for New York and New England Associates from the assets accounts indicated below valued as of the close of business on the business day immediately preceding the distribution date for each such Verizon Pension Plan:: 
  

	 	1.	25% from the VIMCO FR 1000 Value Account 

  

 2 

	 	2.	25% from the VIMCO FR 1000 Growth Account 

  

	 	3.	20% cash to purchase units in the Mellon MSCI EAFE Cap Weighted Index Fund 

  

	 	4.	25% cash to purchase units in the Mellon Lehman Aggregate Bond Index Fund 

  

	 	5.	5% cash from the Cash Account 

 Calculation of Final Transfer Amount

 If the Pension Plan Asset Transfer Amount calculated pursuant to Section 6.3(b) of the EMA for any Idearc Pension Plan exceeds the
Initial Asset Transfer Amount for such Plan, you shall transfer to the corresponding Idearc Trust (the “Final Asset Transfer”) cash in an amount equal to the remainder (such remainder hereafter called the “Difference”) of

  

	 	(A)	the Final Asset Transfer Amount with respect to such Idearc Plan less 

  

	 	(B)	the sum of 

  

	 	(1)	the Initial Asset Transfer and 

  

	 	(2)	the aggregate amount of Benefit Payments made by the Verizon Pension Plan in respect of Idearc Individuals from and after the Distribution Date. 

 The Difference shall be increased or decreased by the gain or loss on the Difference and the gain or loss on the Benefit Payments. The gain or loss on the Difference
shall be calculated based on the gain or loss including reinvestment of dividend and income of the Index or 90 Day Treasury Bill listed below that corresponds to the Verizon Pension Trust Account from which assets transferred in the Initial Asset
Transfer were taken, less the cost incurred by the Verizon Pension Plans as calculated by the Verizon Pension Trustees for the purchase of any units of any Index Fund. The gain or loss on the Benefit Payments shall be calculated based on the gain or
loss of the Index or 90 Day Treasury Bill listed below that corresponds to the Verizon Pension Trust Account from which assets transferred in the Initial Asset Transfer were taken on the amount of any Benefits Payments from November 1, 2006 to
the date of payment in the case of the Idearc Management Pension Plan and from the Distribution Date to the date of payment in the case of the Idearc Union Pension Plan: 
  

	 	1.	Russell 1000 Value Total Return Index for the VIMCO FR 1000 Value Account 

  

 3 

	 	2.	Russell 1000 Growth Total return Index for the VIMCO FR 1000 Growth Account 

  

	 	3.	Morgan Stanley Capital International Inc. Europe, Australasia and Far East Market Capitalization Weighted Index for the Mellon MSCI EAFE Cap Weighted Index Fund

  

	 	4.	Lehman Aggregate Bond Fund Index for the Mellon Lehman Aggregate Index Fund 

  

	 	5.	90 Day Treasury Bill for the Cash. 

 If the Initial Asset
Transfer plus the Benefit Payments exceeds the Pension Plan Asset Transfer Amount, such excess, adjusted for the gains or losses as described above shall be promptly returned to the corresponding Verizon Plan in accordance with
Section 6.3(c)(ii) of the EMA.. 
  

 4 

 Schedule 6.3(b) 
 Actuarial Assumptions and Methods for Pension Asset Transfer 
  

			
	 1.      Discount Rate
	  	PBGC plan termination rates as of the Valuation Date (as defined below. For purposes of illustration , if the Valuation Date were October 1, 2006, such rates would be 6.00%/4.75%, split at
20 years.
		
	 2.      Cash Balance Rates
	  	Cash balance accounts will be projected and converted to an annuity using the applicable plan rates and mortality for the month of the Valuation Date.
		
	 3.      Salary Increases
	  	None.
		
	 4.      Mortality
	  	Rates specified under PBGC Regulation 4044.53(c).
		
	 5.      Termination
	  	None.
		
	 6.      Disability
	  	None.
		
	 7.      Retirement Age
	  	 As specified under PBGC Regulation 4044.55 and 4044.75—Appendix D. In determining the XRA, the age at which a participant reaches his or her
earliest retirement age and unreduced retirement age will be based on:
  
 •      his of her frozen service as of the Valuation Date (as if the participant terminated on the Valuation Date), and
  
 •      will reflect
increases in age past the Valuation Date (allowing for increases in age to the point where participants would reach benefit eligibility).
  
 For participants with only cash balance benefits, the earliest retirement age will be the later of age 55 and their current age, and the unreduced retirement age will be
the later of age 65 and their current age.
  
 The benefit valued at XRA will reflect
future increases in age and service past the Valuation Date for determining the level of early retirement subsidy, if any.

		
	 8.      Form of Payment
	  	Life annuity.
		
	 9.      Expenses
	  	As specified under PBGC Regulation 4044—Appendix C.
		
	 10.    Retirement Decrement
	  	First of the month following attainment of XRA.
		
	 11.    Valuation Date
	  	The Split Date or Distribution Date, as applicable.

  

 5

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