Document:

Exhibit 10.29

 

INDEMNIFICATION AGREEMENT

 

THIS AGREEMENT (the “Agreement”)
is made and entered into as of                        ,
200   between Eschelon Telecom, Inc., a Delaware corporation
(the “Company”), and                       
(“Indemnitee”).

 

WITNESSETH THAT:

 

WHEREAS, Indemnitee
performs a valuable service for the Company; and

 

WHEREAS, the Board of
Directors of the Company has adopted a Seventh Amended and Restated Certificate
of Incorporation (the ”Certificate of Incorporation”) and Amended and
Restated Bylaws (the ”Bylaws”) providing for the indemnification of the
officers and directors of the Company to the maximum extent authorized by Section 145
of the Delaware General Corporation Law, as amended (the ”Law”); and

 

WHEREAS, the Bylaws and
the Law, by their nonexclusive nature, permit contracts between the Company and
the officers or directors of the Company with respect to indemnification of
such officers or directors; and

 

WHEREAS, in accordance
with the authorization as provided by the Law, the Company may purchase and
maintain a policy or policies of directors’ and officers’ liability insurance (“D & O
Insurance”), covering certain liabilities which may be incurred by its officers
or directors in the performance of their obligations to the Company; and

 

WHEREAS, in order to
induce Indemnitee to continue to serve as an officer or director of the
Company, the Company has determined and agreed to enter into this contract with
Indemnitee;

 

NOW, THEREFORE, in
consideration of Indemnitee’s service as an officer or director after the date
hereof, the parties hereto agree as follows:

 

1.             Indemnity
of Indemnitee.  The Company hereby
agrees to hold harmless and indemnify Indemnitee to the full extent authorized
or permitted by the provisions of the Law, as such may be amended from time to
time, Article Eight of the Certificate of Incorporation, as such may be
amended, and Article VII of the Bylaws, as such may be amended.  In furtherance of the foregoing
indemnification, and without limiting the generality thereof:

 

(a)           Proceedings
Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of
indemnification provided in this Section l(a) if, by reason of his
Corporate Status (as hereinafter defined), he is, or is threatened to be made,
a party to or participant in any Proceeding (as hereinafter defined) other than
a Proceeding by or in the right of the Company. 
Pursuant to this Section 1(a), Indemnitee shall be indemnified
against all Expenses (as hereinafter defined), judgments, penalties, fines and 

 

 

amounts paid in settlement actually and reasonably
incurred by him, or on his behalf, in connection with such Proceeding or any
claim, issue or matter therein, if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
Company, and with respect to any criminal Proceeding, had no reasonable cause
to believe his conduct was unlawful.

 

(b)           Proceedings
by or in the Right of the Company. 
Indemnitee shall be entitled to the rights of indemnification provided
in this Section 1(b) if, by reason of his Corporate Status, he is, or
is threatened to be made, a party to or participant in any Proceeding brought
by or in the right of the Company. 
Pursuant to this Section 1(b), Indemnitee shall be indemnified
against all Expenses actually and reasonably incurred by him, or on his behalf,
in connection with such Proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
Company; provided, however, if applicable law so provides, no indemnification
against such Expenses shall be made in respect of any claim, issue or matter in
such Proceeding as to which Indemnitee shall have been adjudged to be liable to
the Company unless and to the extent that the Court of Chancery of the State of
Delaware shall determine that such indemnification may be made.

 

(c)           Indemnification
for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his Corporate Status,
a party to and is successful, on the merits or otherwise, in any Proceeding, he
shall be indemnified to the maximum extent permitted by law against all
Expenses actually and reasonably incurred by him or on his behalf in connection
therewith.  If Indemnitee is not wholly
successful in such Proceeding but is successful, on the merits or otherwise, as
to one or more but less than all claims, issues or matters in such Proceeding,
the Company shall indemnify Indemnitee against all Expenses actually and
reasonably incurred by him or on his behalf in connection with each
successfully resolved claim, issue or matter. 
For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, shall be deemed to be a successful result as to such
claim, issue or matter.

 

2.             Additional
Indemnity.  In addition to, and
without regard to any limitations on, the indemnification provided for in Section 1
of this Agreement, the Company shall and hereby does indemnify and hold
harmless Indemnitee against all Expenses, judgments, penalties, fines and
amounts paid in settlement actually and reasonably incurred by him or on his
behalf if, by reason of his Corporate Status, he is, or is threatened to be
made, a party to or participant in any Proceeding (including a Proceeding by or
in the right of the Company), including, without limitation, all liability arising
out of the negligence or active or passive wrongdoing of Indemnitee.  The only limitation that shall exist upon the
Company’s obligations pursuant to this Agreement shall be that the Company
shall not be obligated to make any payment to Indemnitee that is finally
determined (under the procedures, and subject to the presumptions, set forth in
Sections 6 and 7 hereof) to be unlawful under Delaware law.

 

3.             Contribution
in the Event of Joint Liability.

 

(a)           Whether
or not the indemnification provided in Sections 1 and 2 hereof is available, in
respect of any threatened, pending or completed action, suit or proceeding 

 

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in which the Company is jointly liable with Indemnitee
(or would be if joined in such action, suit or proceeding), the Company shall
pay, in the first instance, the entire amount of any judgment or settlement of
such action, suit or proceeding without requiring Indemnitee to contribute to
such payment and the Company hereby waives and relinquishes any right of
contribution it may have against Indemnitee. 
The Company shall not enter into any settlement of any action, suit or
proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such action, suit or proceeding) unless such settlement provides
for a full and final release of all claims asserted against Indemnitee.

 

(b)           Without
diminishing or impairing the obligations of the Company set forth in the
preceding subparagraph, if, for any reason, Indemnitee shall elect or be
required to pay all or any portion of any judgment or settlement in any
threatened, pending or completed action, suit or proceeding in which the
Company is jointly liable with Indemnitee (or would be if joined in such
action, suit or proceeding), the Company shall contribute to the amount of
expenses (including attorneys’ fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred and paid or payable by Indemnitee
in proportion to the relative benefits received by the Company and all
officers, directors or employees of the Company, other than Indemnitee, who are
jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction
from which such action, suit or proceeding arose; provided, however, that the
proportion determined on the basis of relative benefit may, to the extent
necessary to conform to law, be further adjusted by reference to the relative
fault of the Company and all officers, directors or employees of the Company
other than Indemnitee who are jointly liable with Indemnitee (or would be if
joined in such action, suit or proceeding), on the one hand, and Indemnitee, on
the other hand, in connection with the events that resulted in such expenses,
judgments, fines or settlement amounts, as well as any other equitable
considerations which the Law may require to be considered.  The relative fault of the Company and all officers,
directors or employees of the Company, other than Indemnitee, who are jointly
liable with Indemnitee (or would be if joined in such action, suit or
proceeding), on the one hand, and Indemnitee, on the other hand, shall be
determined by reference to, among other things, the degree to which their
actions were motivated by intent to gain personal profit or advantage, the
degree to which their liability is primary or secondary and the degree to which
their conduct is active or passive.

 

(c)           The
Company hereby agrees to fully indemnify and hold Indemnitee harmless from any
claims of contribution which may be brought by officers, directors or employees
of the Company, other than Indemnitee, who may be jointly liable with
Indemnitee.

 

4.             Indemnification
for Expenses of a Witness. 
Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is, by reason of his Corporate Status, a witness in any
Proceeding to which Indemnitee is not a party, he shall be indemnified against
all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith.

 

5.             Advancement
of Expenses.  Notwithstanding any
other provision of this Agreement, the Company shall advance all Expenses
incurred by or on behalf of Indemnitee in connection with any Proceeding by
reason of Indemnitee’s Corporate Status within ten (10) business days
after the receipt by the Company of a statement or statements from Indemnitee 

 

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requesting such advance or advances from time to time,
whether prior to or after final disposition of such Proceeding, provided that
Indemnitee shall (i) affirm in such written request that he acted in good
faith and in a manner which he reasonably believed to be in the best interests
of the Company or not opposed to the best interests of the Company and (ii) undertake
to repay such amount to the extent that it is ultimately determined that
Indemnitee is not entitled to indemnification, and further provided that no
determination has been made that the facts then known would preclude
indemnification pursuant to the terms of this Agreement.  Such statement or statements shall reasonably
evidence the Expenses incurred by Indemnitee and shall include or be preceded
or accompanied by an undertaking by or on behalf of Indemnitee to repay any
Expenses advanced if it shall ultimately be determined that Indemnitee is not
entitled to be indemnified against such Expenses.  Any advances and undertakings to repay
pursuant to this Section 5 shall be unsecured and interest free.  Notwithstanding the foregoing, the obligation
of the Company to advance Expenses pursuant to this Section 5 shall be
subject to the condition that, if, when and to the extent that the Company
determines that Indemnitee would not be permitted to be indemnified under applicable
law, the Company shall be entitled to be reimbursed, within thirty (30) days of
such determination, by Indemnitee (who hereby agrees to reimburse the Company)
for all such amounts theretofore paid; provided, however, that if Indemnitee
has commenced or thereafter commences legal proceedings in a court of competent
jurisdiction to secure a determination that Indemnitee should be indemnified
under applicable law, any determination made by the Company that Indemnitee
would not be permitted to be indemnified under applicable law shall not be
binding and Indemnitee shall not be required to reimburse the Company for any
advance of Expenses until a final judicial determination is made with respect
thereto (and as to which all rights of appeal therefrom have been exhausted or
lapsed).

 

6.             Procedures
and Presumptions for Determination of Entitlement to Indemnification.  It is the intent of this Agreement to secure
for Indemnitee rights of indemnity that are as favorable as may be permitted
under the Law and public policy of the State of Delaware.  Accordingly, the parties agree that the
following procedures and presumptions shall apply in the event of any question
as to whether Indemnitee is entitled to indemnification under this Agreement:

 

(a)           To
obtain indemnification (including, but not limited to, the advancement of
Expenses and contribution by the Company) under this Agreement, Indemnitee
shall submit to the Company a written request, including therein or therewith
such documentation and information as is reasonably available to Indemnitee and
is reasonably necessary to determine whether and to what extent Indemnitee is
entitled to indemnification.  The
Secretary of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board of Directors in writing that Indemnitee has
requested indemnification.

 

(b)           Upon
written request by Indemnitee for indemnification pursuant to the first
sentence of Section 6(a) hereof, a determination, if required by
applicable law, with respect to Indemnitee’s entitlement thereto shall be made
in the specific case by one of the following three methods, which shall be at
the election of the Company:  (1) by
a majority vote of the Disinterested Directors, even though less than a quorum,
(2) by Independent Counsel in a written opinion or (3) by the
stockholders.

 

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(c)           If
the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 6(b) hereof, the Independent
Counsel shall be selected as provided in this Section 6(c).  The Independent Counsel shall be selected by
Indemnitee (unless Indemnitee requests that such selection be made by the Board
of Directors).  Indemnitee or the
Company, as the case may be, may, within 10 days after such written notice of
selection shall have been given, deliver to the Company or to Indemnitee, as
the case may be, a written objection to such selection; provided, however, that
such objection may be asserted only on the ground that the Independent Counsel
so selected does not meet the requirements of “Independent Counsel” as defined
in Section 13 of this Agreement, and the objection shall set forth with
particularity the factual basis of such assertion.  Absent a proper and timely objection, the
person so selected shall act as Independent Counsel.  If a written objection is made and
substantiated, the Independent Counsel selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court has determined
that such objection is without merit. 
If, within 20 days after submission by Indemnitee of a written request
for indemnification pursuant to Section 6(a) hereof, no Independent
Counsel shall have been selected and not objected to, either the Company or
Indemnitee may petition the Court of Chancery of the State of Delaware or other
court of competent jurisdiction for resolution of any objection which shall
have been made by the Company or Indemnitee to the other’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a
person selected by the court or by such other person as the court shall
designate, and the person with respect to whom all objections are so resolved
or the person so appointed shall act as Independent Counsel under Section 6(b) hereof.  The Company shall pay any and all reasonable
fees and expenses of Independent Counsel incurred by such Independent Counsel
in connection with acting pursuant to Section 6(b) hereof, and the
Company shall pay all reasonable fees and expenses incident to the procedures
of this Section 6(c), regardless of the manner in which such Independent
Counsel was selected or appointed.

 

(d)           In
making a determination with respect to entitlement to indemnification
hereunder, the person or persons or entity making such determination shall
presume that Indemnitee is entitled to indemnification under this
Agreement.  Anyone seeking to overcome
this presumption shall have the burden of proof and the burden of persuasion by
clear and convincing evidence.

 

(e)           Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on
the records or books of account of the Enterprise, including financial
statements, or on information supplied to Indemnitee by the officers of the
Enterprise (as hereinafter defined) in the course of their duties, or on the
advice of legal counsel for the Enterprise or on information or records given
or reports made to the Enterprise by an independent certified public accountant
or by an appraiser or other expert selected with reasonable care by the
Enterprise.  In addition, the knowledge
and/or actions, or failure to act, of any director, officer, agent or employee
of the Enterprise shall not be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of
this Section 6(e) are satisfied, it shall in any event be presumed
that Indemnitee has at all times acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
Company.  Anyone seeking to overcome this
presumption shall have the burden of proof and the burden of persuasion by
clear and convincing evidence.

 

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(f)            If
the person, persons or entity empowered or selected under Section 6 to
determine whether Indemnitee is entitled to indemnification shall not have made
a determination within thirty (30) days after receipt by the Company of the
request therefor, the requisite determination of entitlement to indemnification
shall be deemed to have been made and Indemnitee shall be entitled to such
indemnification absent (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under
applicable law; provided, however, that such 30-day period may be extended for
a reasonable time, not to exceed an additional fifteen (15) days, if the
person, persons or entity making such determination with respect to entitlement
to indemnification in good faith requires such additional time to obtain or
evaluate documentation and/or information relating thereto; and provided,
further, that the foregoing provisions of this Section 6(f) shall not
apply if the determination of entitlement to indemnification is to be made by
the stockholders pursuant to Section 6(b) of this Agreement and if (A) within
fifteen (15) days after receipt by the Company of the request for such
determination, the Board of Directors or the Disinterested Directors, if
appropriate, resolve to submit such determination to the stockholders for their
consideration at an annual meeting thereof to be held within seventy-five (75)
days after such receipt and such determination is made thereat, or (B) a
special meeting of stockholders is called within fifteen (15) days after such
receipt for the purpose of making such determination, such meeting is held for
such purpose within sixty (60) days after having been so called and such
determination is made thereat.

 

(g)           Indemnitee
shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including
providing to such person, persons or entity upon reasonable advance request any
documentation or information which is not privileged or otherwise protected
from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination.  Any
Independent Counsel, member of the Board of Directors or stockholder of the
Company shall act reasonably and in good faith in making a determination
regarding the Indemnitee’s entitlement to indemnification under this Agreement.  Any costs or expenses (including attorneys’
fees and disbursements) incurred by Indemnitee in so cooperating with the
person, persons or entity making such determination shall be borne by the
Company (irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom.

 

(h)           The
Company acknowledges that a settlement or other disposition short of final
judgment may be successful if it permits a party to avoid expense, delay,
distraction, disruption and uncertainty. 
In the event that any action, claim or proceeding to which Indemnitee is
a party is resolved in any manner other than by adverse judgment against Indemnitee
(including, without limitation, settlement of such action, claim or proceeding
with or without payment of money or other consideration) it shall be presumed
that Indemnitee has been successful on the merits or otherwise in such action,
suit or proceeding.  Anyone seeking to
overcome this presumption shall have the burden of proof and the burden of
persuasion by clear and convincing evidence.

 

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7.             Remedies
of Indemnitee.

 

(a)           In
the event that (i) a determination is made pursuant to Section 6 of
this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5
of this Agreement, (iii) no determination of entitlement to
indemnification is made pursuant to Section 6(b) of this Agreement
within 90 days after receipt by the Company of the request for indemnification,
(iv) payment of indemnification is not made pursuant to this Agreement
within ten (10) days after receipt by the Company of a written request
therefor (in those instances wherein no determination of entitlement is
required) or (v) payment of indemnification is not made within ten (10) days
after a determination has been made that Indemnitee is entitled to
indemnification or such determination is deemed to have been made pursuant to Section 6
of this Agreement, Indemnitee shall be entitled to an adjudication in an
appropriate court of the State of Delaware, or in any other court of competent
jurisdiction, of his entitlement to such indemnification.  Indemnitee shall commence such proceeding
seeking an adjudication within 180 days following the date on which Indemnitee
first has the right to commence such proceeding pursuant to this Section 7(a).  The Company shall not oppose Indemnitee’s
right to seek any such adjudication.

 

(b)           In
the event that a determination shall have been made pursuant to Section 6(b) of
this Agreement that Indemnitee is not entitled to indemnification, any judicial
proceeding commenced pursuant to this Section 7 shall be conducted in all
respects as a de novo trial on the merits, and
Indemnitee shall not be prejudiced by reason of the adverse determination under
Section 6(b).

 

(c)           If
a determination shall have been made pursuant to Section 6(b) of this
Agreement that Indemnitee is entitled to indemnification, the Company shall be
bound by such determination in any judicial proceeding commenced pursuant to
this Section 7, absent a prohibition of such indemnification under
applicable law.

 

(d)           In
the event that Indemnitee, pursuant to this Section 7, seeks a judicial
adjudication of his rights under, or to recover damages for breach of, this
Agreement, or to recover under any directors’ and officers’ liability insurance
policies maintained by the Company, the Company shall pay on his behalf, in
advance, any and all expenses (of the types described in the definition of
Expenses in Section 13 of this Agreement) actually and reasonably incurred
by him in such judicial adjudication, regardless of whether Indemnitee
ultimately is determined to be entitled to such indemnification, advancement of
expenses or insurance recovery.

 

(e)           The
Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 7 that the procedures and presumptions of this
Agreement are not valid, binding and enforceable and shall stipulate in any
such court that the Company is bound by all the provisions of this Agreement.

 

8.             Non-Exclusivity;
Survival of Rights; Insurance; Subrogation.

 

(a)           The
rights of indemnification as provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may at any time be entitled 

 

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under applicable law, the certificate of incorporation
of the Company, the Bylaws, any agreement, a vote of stockholders, a resolution
of directors or otherwise.  No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit
or restrict any right of Indemnitee under this Agreement in respect of any
action taken or omitted by such Indemnitee in his Corporate Status prior to
such amendment, alteration or repeal.  To
the extent that a change in the Law, whether by statute or judicial decision,
permits greater indemnification than would be afforded currently under the
Bylaws and this Agreement, it is the intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
such change.  No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other right or remedy.

 

(b)           For
the duration of the Indemnitee’s service as an officer or director of the
Company and thereafter so long as Indemnitee shall be subject to any Proceeding
(or any proceeding commenced under Section 7 hereof) by reason of his
Corporate Status, whether or not he is acting or serving in any such capacity
at the time, and to the extent that the Company maintains an insurance policy
or policies providing liability insurance for directors, officers, employees,
or agents or fiduciaries of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
that such person serves at the request of the Company, Indemnitee shall be
covered by such policy or policies in accordance with its or their terms to the
maximum extent of the coverage available for any director, officer, employee,
agent or fiduciary under such policy or policies.

 

(c)           In
the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all papers required and take all action necessary to secure
such rights, including execution of such documents as are necessary to enable
the Company to bring suit to enforce such rights.

 

(d)           The
Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

 

9.             Mutual
Acknowledgment.  The Company and
Indemnitee acknowledge that in certain instances, Federal law or applicable
public policy (pursuant to the immediately following sentence) may prohibit the
Company from indemnifying its directors, officers, employees, controlling
persons, fiduciaries or other agents or affiliates under this Agreement or
otherwise.  Indemnitee understands and
acknowledges that the Company may be required in the future to undertake with
the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of the
Company’s rights under public policy to indemnify Indemnitee.

 

10.           Duration
of Agreement.  All agreements and
obligations of the Company contained herein shall continue during the period
Indemnitee is an officer or director of the 

 

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Company (or is or was serving at the request of the
Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise) and shall continue
thereafter so long as Indemnitee shall be subject to any Proceeding (or any
proceeding commenced under Section 7 hereof) by reason of his Corporate
Status, whether or not he is acting or serving in any such capacity at the time
any liability or expense is incurred for which indemnification can be provided
under this Agreement.  This Agreement shall
be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Company), assigns, spouses,
heirs, executors and personal and legal representatives.

 

11.           Exceptions.  Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

 

(a)           Excluded
Action or Omissions.  To indemnify
the Indemnitee for any intentional malfeasance by the Indemnitee or any act
undertaken by the Indemnitee where the Indemnitee did not in good faith believe
the Indemnitee was acting in or not opposed to the best interests of the
Company, or for any other acts, omissions or transactions from which the
Indemnitee may not be relieved of liability under applicable law;

 

(b)           Claims
Initiated by Indemnitee.  To
indemnify or advance expenses to Indemnitee with respect to Proceedings
initiated or brought voluntarily by Indemnitee and not by way of defense,
except (i) with respect to actions or proceedings to establish or enforce
a right to indemnify under this Agreement or any other agreement or insurance
policy or under the Company’s Certificate of Incorporation or Bylaws now or
hereafter in effect relating to indemnification, (ii) in specific cases if
the Board of Directors has approved the initiation or bringing of such
Proceeding, or (iii) as otherwise required under Section 145 of the
Delaware General Corporation Law, regardless of whether such Indemnitee
ultimately is determined to be entitled to such indemnification, advance
expense payment or insurance recovery, as the case may be;

 

(c)           Lack
of Good Faith.  To indemnify
Indemnitee for any expenses incurred by Indemnitee with respect to any
proceeding instituted by Indemnitee to enforce or interpret this Agreement, if
a court of competent jurisdiction determines that each of the material
assertions made by the Indemnitee in such proceeding was not made in good faith
or was frivolous; or

 

(d)           Claims
Under Section 16(b).  To
indemnify Indemnitee for expenses and the payment of profits arising from the
purchase and sale by Indemnitee of securities in violation of Section 16(b) of
the Securities Exchange Act of 1934, as amended or any similar successor
statute.

 

12.           Enforcement.

 

(a)           The
Company expressly confirms and agrees that it has entered into this Agreement
and assumes the obligations imposed on it hereby in order to induce Indemnitee
to serve as an officer or director of the Company, and the Company acknowledges

 

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that Indemnitee is relying upon this Agreement in
serving as an officer or director of the Company.

 

(b)           This
Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral, written and implied, between the parties hereto with
respect to the subject matter hereof.

 

13.           Definitions.  For purposes of this Agreement:

 

(a)           “Corporate
Status” describes the status of a person who is or was a director, officer,
employee, agent or fiduciary of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
that such person is or was serving at the request of the Company.

 

(b)           “Disinterested
Director” means a director of the Company who is not and was not a party to the
Proceeding in respect of which indemnification is sought by Indemnitee.

 

(c)           “Enterprise”
shall mean the Company and any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise that Indemnitee is or was
serving at the request of the Company as a director, officer, employee, agent
or fiduciary.

 

(d)           “Expenses”
shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service
fees and all other disbursements or expenses of the types customarily incurred
in connection with prosecuting, defending, preparing to prosecute or defend,
investigating, participating, or being or preparing to be a witness in a
Proceeding.

 

(e)           “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years
has been, retained to represent:  (i) the
Company or Indemnitee in any matter material to either such party (other than
with respect to matters concerning Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements), or (ii) any other
party to the Proceeding giving rise to a claim for indemnification
hereunder.  Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s rights under this Agreement.  The Company agrees to pay the reasonable fees
of the Independent Counsel referred to above and to fully indemnify such
counsel against any and all Expenses, claims, liabilities and damages arising
out of or relating to this Agreement or its engagement pursuant hereto.

 

(f)            “Proceeding”
includes any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether
brought by or in the right of the Company or otherwise and whether civil,
criminal, administrative or 

 

10

 

investigative, in which Indemnitee was, is or will be
involved as a party or otherwise, by reason of the fact that Indemnitee is or
was an officer or director of the Company, by reason of any action taken by him
or of any inaction on his part while acting as an officer or director of the
Company, or by reason of the fact that he is or was serving at the request of
the Company as a director, officer, employee, agent or fiduciary of another
corporation, partnership, joint venture, trust or other Enterprise; in each
case whether or not he is acting or serving in any such capacity at the time
any liability or expense is incurred for which indemnification can be provided
under this Agreement; including one pending on or before the date of this
Agreement, but excluding one initiated by an Indemnitee pursuant to Section 7
of this Agreement to enforce his rights under this Agreement.

 

14.           Severability.  If any provision or provisions of this
Agreement shall be held by a court of competent jurisdiction to be invalid, void,
illegal or otherwise unenforceable for any reason whatsoever:  (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including without
limitation, each portion of any section of this Agreement containing any
such provision held to be invalid, illegal or unenforceable that is not itself
invalid, illegal or unenforceable) shall not in any way be affected or impaired
thereby and shall remain enforceable to the fullest extent permitted by law;
and (b) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of any section of this
Agreement containing any such provision held to be invalid, illegal or
unenforceable that is not itself invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifested thereby. Without limiting the generality of the foregoing,
this Agreement is intended to confer upon Indemnitee indemnification rights to
the fullest extent permitted by applicable laws.  In the event any provision hereof conflicts
with any applicable law, such provision shall be deemed modified, consistent
with the aforementioned intent, to the extent necessary to resolve such
conflict.

 

15.           Modification
and Waiver.  No supplement,
modification, termination or amendment of this Agreement shall be binding
unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

16.           Notice
By Indemnitee.  Indemnitee agrees
promptly to notify the Company in writing upon being served with or otherwise
receiving any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to
indemnification covered hereunder.  The
failure to so notify the Company shall not relieve the Company of any obligation
which it may have to Indemnitee under this Agreement or otherwise unless and
only to the extent that such failure or delay materially prejudices the
Company.

 

17.           Notices.  All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been duly
given if (i) delivered by hand and receipted for by the party to whom said
notice or other communication shall have been directed, or (ii) mailed by
certified or registered mail with postage prepaid, on the third business day
after the date on which it is so mailed:

 

11

 

(a)           If
to Indemnitee, to the address set forth below Indemnitee signature hereto.

 

(b)                                 If
to the Company, to:

 

Eschelon Telecom, Inc.

730 Second Avenue South, Suite 900 

Minneapolis, Minnesota 55402

Attention:  Richard A. Smith

 

or to such other address
as may have been furnished to Indemnitee by the Company or to the Company by
Indemnitee, as the case may be.

 

18.           Identical
Counterparts.  This Agreement may be
executed in one or more counterparts, each of which shall for all purposes be
deemed to be an original but all of which together shall constitute one and the
same Agreement.  Only one such
counterpart signed by the party against whom enforceability is sought needs to
be produced to evidence the existence of this Agreement.

 

19.           Headings.  The headings of the paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

20.           Governing
Law.  The parties agree that this
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware without application of the conflict of laws
principles thereof.

 

21.           Gender.  Use of the masculine pronoun shall be deemed
to include usage of the feminine pronoun where appropriate.

 

12

 

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

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  ESCHELON TELECOM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard A. Smith

  
	
   

  	
   

  	
  Title:

  	
  President and Chief
  Executive

  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Address:Exhibit 10.12

 

	
  

  	
   

  	
  Registrar Accreditation

  Agreement

  

 

 

This REGISTRAR
ACCREDITATION AGREEMENT (“Agreement”) is by and between the Internet
Corporation for Assigned Names and Numbers (“ICANN”), a California non-profit,
public benefit corporation, and Tucows.com
Co., a Nova Scotia Corporation (“Registrar”), and shall be deemed
made on 25 June 2005 at Los Angeles, California, USA.

 

1  DEFINITIONS. For purposes of this
Agreement, the following definitions shall apply:

 

1.1                                 “Accredit” means to
identify and set minimum standards for the performance of registration
functions, to recognize persons or entities meeting those standards, and to
enter into an accreditation agreement that sets forth the rules and
procedures applicable to the provision of Registrar Services.

 

1.2                                 “DNS” refers to the
Internet domain-name system.

 

1.3                                 The “Effective Date” is
25 June 2005.

 

1.4                                 The “Expiration Date” is
24 June 2010.

 

1.5                                 “ICANN” refers to the
Internet Corporation for Assigned Names and Numbers, a party to this Agreement.

 

1.6                                 “Personal Data” refers
to data about any identified or identifiable natural person.

 

1.7                                 “Registered Name” refers
to a domain name within the domain of a TLD that is the subject of an appendix
to this Agreement, whether consisting of two or more (e.g., john.smith.name)
levels, about which a TLD Registry Operator (or an affiliate engaged in
providing Registry Services) maintains data in a Registry Database, arranges
for such maintenance, or derives revenue from such maintenance. A name in a
Registry Database may be a Registered Name even though it does not appear in a
zone file (e.g., a registered but inactive name).

 

1.8                                 “Registered Name Holder”
means the holder of a Registered Name.

 

1.9                                 The word “Registrar,”
when appearing with an initial capital letter, refers to Tucows.com Co., a
party to this Agreement.

 

1.10                           The word “registrar,” when
appearing without an initial capital letter, refers to a person or entity that
contracts with Registered Name Holders and with a Registry Operator and
collects registration data about the Registered Name Holders and submits
registration information for entry in the Registry Database.

 

1.11                           “Registrar Services” means
services provided by a registrar in connection with a TLD as to which it has an
agreement with the TLD’s Registry Operator, and includes contracting with
Registered Name Holders, collecting registration data

 

1

 

about the Registered Name Holders, and
submitting registration information for entry in the Registry Database.

 

1.12                           “Registry Data” means all
Registry Database data maintained in electronic form, and shall include TLD
Zone-File Data, all data used to provide Registry Services and submitted by
registrars in electronic form, and all other data used to provide Registry
Services concerning particular domain name registrations or nameservers
maintained in electronic form in a Registry Database.

 

1.13                           “Registry Database” means a
database comprised of data about one or more DNS domain names within the domain
of a registry that is used to generate either DNS resource records that are
published authoritatively or responses to domain-name availability lookup
requests or Whois queries, for some or all of those names.

 

1.14                           A “Registry Operator” is the
person or entity then responsible, in accordance with an agreement between
ICANN (or its assignee) and that person or entity (those persons or entities)
or, if that agreement is terminated or expires, in accordance with an agreement
between the US Government and that person or entity (those persons or
entities), for providing Registry Services for a specific TLD.

 

1.15                           “Registry Services,” with
respect to a particular TLD, shall have the meaning defined in the agreement
between ICANN and the Registry Operator for that TLD.

 

1.16                           A Registered Name is “sponsored”
by the registrar that placed the record associated with that registration into
the registry. Sponsorship of a registration may be changed at the express
direction of the Registered Name Holder or, in the event a registrar loses
accreditation, in accordance with then-current ICANN specifications and
policies.

 

1.17                           “Term of this Agreement” begins
on the Effective Date and continues to the earlier of (a) the Expiration
Date, or (b) termination of this Agreement.

 

1.18                           A “TLD” is a top-level domain
of the DNS.

 

1.19                           “TLD Zone-File Data” means all
data contained in a DNS zone file for the registry, or for any subdomain for
which Registry Services are provided and that contains Registered Names, as
provided to nameservers on the Internet.

 

2  ICANN OBLIGATIONS.

 

2.1                                 Accreditation.
During the Term of this Agreement, Registrar is hereby accredited by ICANN to
act as a registrar (including to insert and renew registration of Registered
Names in the Registry Database) for the TLD(s) that are the subject of
appendices to this Agreement according to Subsection 5.5.

 

2.2                                 Registrar Use of ICANN
Name and Website. ICANN hereby grants to
Registrar a non-exclusive, worldwide, royalty-free license during the Term of
this Agreement (a) to state that it is accredited by ICANN as a registrar
for each TLD that is the subject of an appendix to this Agreement and
(b) to link to pages and documents within the ICANN web site. No
other use of ICANN’s name or

 

2

 

website is licensed hereby.  This license may not be assigned or
sublicensed by Registrar.

 

2.3                                 General Obligations of
ICANN. With respect to all matters that impact the rights,
obligations, or role of Registrar, ICANN shall during the Term of this
Agreement:

 

2.3.1                        exercise its responsibilities
in an open and transparent manner;

 

2.3.2                        not unreasonably restrain
competition and, to the extent feasible, promote and encourage robust
competition;

 

2.3.3                        not apply standards, policies,
procedures or practices arbitrarily, unjustifiably, or inequitably and not
single out Registrar for disparate treatment unless justified by substantial
and reasonable cause; and

 

2.3.4                        ensure, through its
reconsideration and independent review policies, adequate appeal procedures for
Registrar, to the extent it is adversely affected by ICANN standards, policies,
procedures or practices.

 

3  REGISTRAR
OBLIGATIONS.

 

3.1                                 Obligations to Provide
Registrar Services. During the Term of this
Agreement, Registrar agrees that it will operate as a registrar for each TLD
for which it is accredited by ICANN in accordance with this Agreement.

 

3.2                                 Submission of Registered
Name Holder Data to Registry. During the Term of this
Agreement:

 

3.2.1                        As part of its registration of Registered
Names in a TLD as to which it is accredited, Registrar shall submit to, or
shall place in the Registry Database operated by, the Registry Operator for the
TLD the following data elements:

 

3.2.1.1               The name of the Registered Name
being registered;

 

3.2.1.2               The IP addresses of the primary
nameserver and secondary nameserver(s) for the Registered Name;

 

3.2.1.3               The corresponding names of
those nameservers;

 

3.2.1.4               Unless automatically generated
by the registry system, the identity of the Registrar;

 

3.2.1.5               Unless automatically generated
by the registry system, the expiration date of the registration; and

 

3.2.1.6               Any other data the Registry
Operator requires be submitted to it.

 

The appendix to this Agreement for a particular
TLD may state substitute language for Subsections 3.2.1.1 through 3.2.1.6 as
applicable to that TLD; in that event the substitute language shall

 

3

 

 

replace and supersede Subsections 3.2.1.1
through 3.2.1.6 stated above for all purposes under this Agreement but only
with respect to that particular TLD.

 

3.2.2                        Within five (5) business
days after receiving any updates from the Registered Name Holder to the data
elements listed in Subsections 3.2.1.2, 3.1.2.3, and 3.2.1.6 for any Registered
Name Registrar sponsors, Registrar shall submit the updated data elements to,
or shall place those elements in the Registry Database operated by the Registry
Operator.

 

3.2.3                        In order to allow
reconstitution of the Registry Database in the event of an otherwise
unrecoverable technical failure or a change in the designated Registry
Operator, within ten days of any such request by ICANN, Registrar shall submit
an electronic database containing the data elements listed in Subsections
3.2.1.1 through 3.2.1.6 for all active records in the registry sponsored by
Registrar, in a format specified by ICANN, to the Registry Operator for the
appropriate TLD.

 

3.3                                 Public Access to Data on Registered Names. During the Term of this Agreement:

 

3.3.1                        At its expense, Registrar shall provide
an interactive web page and a port 43 Whois service providing free public
query-based access to up-to-date (i.e., updated at least daily) data concerning
all active Registered Names sponsored by Registrar for each TLD for which it is
accredited. The data accessible shall consist of elements that are designated
from time to time according to an ICANN adopted specification or policy. Until
ICANN otherwise specifies by means of an ICANN adopted specification or policy,
this data shall consist of the following elements as contained in Registrar’s
database:

 

3.3.1.1               The name of the Registered
Name;

 

3.3.1.2               The names of the primary
nameserver and secondary nameserver(s) for the Registered Name;

 

3.3.1.3               The identity of Registrar
(which may be provided through Registrar’s website);

 

3.3.1.4               The original creation date of
the registration;

 

3.3.1.5               The expiration date of the
registration;

 

3.3.1.6               The name and postal address of
the Registered Name Holder;

 

3.3.1.7               The name, postal address,
e-mail address, voice telephone number, and (where available) fax number of the
technical contact for the Registered Name; and

 

4

 

3.3.1.8               The name, postal address,
e-mail address, voice telephone number, and (where available) fax number of the
administrative contact for the Registered Name.

 

The appendix to this Agreement for a particular
TLD may state substitute language for Subsections 3.3.1.1 through 3.3.1.8 as
applicable to that TLD; in that event the substitute language shall replace and
supersede Subsections 3.3.1.1 through 3.3.1.8 stated above for all purposes
under this Agreement but only with respect to that particular TLD.

 

3.3.2                        Upon receiving any updates to
the data elements listed in Subsections 3.3.1.2, 3.3.1.3, and 3.3.1.5 through
3.3.1.8 from the Registered Name Holder, Registrar shall promptly update its
database used to provide the public access described in Subsection 3.3.1.

 

3.3.3                        Registrar may subcontract its
obligation to provide the public access described in Subsection 3.3.1 and
the updating described in Subsection 3.3.2, provided that Registrar shall
remain fully responsible for the proper provision of the access and updating.

 

3.3.4                        Registrar shall abide by any
ICANN specification or policy established as a Consensus Policy according to
Section 4 that requires registrars to cooperatively implement a
distributed capability that provides query-based Whois search functionality
across all registrars. If the Whois service implemented by registrars does not
in a reasonable time provide reasonably robust, reliable, and convenient access
to accurate and up-to-date data, the Registrar shall abide by any ICANN
specification or policy established as a Consensus Policy according to
Section 4 requiring Registrar, if reasonably determined by ICANN to be
necessary (considering such possibilities as remedial action by specific
registrars), to supply data from Registrar’s database to facilitate the
development of a centralized Whois database for the purpose of providing
comprehensive Registrar Whois search capability.

 

3.3.5                        In providing query-based public
access to registration data as required by Subsections 3.3.1 and 3.3.4,
Registrar shall not impose terms and conditions on use of the data provided,
except as permitted by policy established by ICANN. Unless and until ICANN
establishes a different policy according to Section 4, Registrar shall
permit use of data it provides in response to queries for any lawful purposes
except to: (a) allow, enable, or otherwise support the transmission by
e-mail, telephone, or facsimile of mass, unsolicited, commercial advertising or
solicitations to entities other than the data recipient’s own existing
customers; or (b) enable high volume, automated, electronic processes that
send queries or data to the systems of any Registry Operator or
ICANN-Accredited registrar, except as reasonably necessary to register domain
names or modify existing registrations.

 

5

 

3.3.6                        In addition, Registrar shall
provide third-party bulk access to the data subject to public access under
Subsection 3.3.1 under the following terms and conditions:

 

3.3.6.1               Registrar shall make a complete
electronic copy of the data available at least one time per week for download
by third parties who have entered into a bulk access agreement with Registrar.

 

3.3.6.2               Registrar may charge an annual
fee, not to exceed US$10,000, for such bulk access to the data.

 

3.3.6.3               Registrar’s access agreement
shall require the third party to agree not to use the data to allow, enable, or
otherwise support the transmission by e-mail, telephone, or facsimile of mass,
unsolicited, commercial advertising or solicitations to entities other than
such third party’s own existing customers.

 

3.3.6.4               Registrar’s access agreement
shall require the third party to agree not to use the data to enable
high-volume, automated, electronic processes that send queries or data to the
systems of any Registry Operator or ICANN-Accredited registrar, except as
reasonably necessary to register domain names or modify existing registrations.

 

3.3.6.5               Registrar’s access agreement
may require the third party to agree not to sell or redistribute the data
except insofar as it has been incorporated by the third party into a value-added
product or service that does not permit the extraction of a substantial portion
of the bulk data from the value-added product or service for use by other
parties.

 

3.3.6.6               Registrar may enable Registered
Name Holders who are individuals to elect not to have Personal Data concerning
their registrations available for bulk access for marketing purposes based on
Registrar’s “Opt-Out” policy, and if Registrar has such a policy, Registrar
shall require the third party to abide by the terms of that Opt-Out policy;
provided, however, that Registrar may not use such data subject to opt-out for
marketing purposes in its own value-added product or service.

 

3.3.7                        Registrar’s obligations under
Subsection 3.3.6 shall remain in effect until the earlier of (a) replacement
of this policy with a different ICANN policy, established according to
Section 4, governing bulk access to the data subject to public access
under Subsection 3.3.1, or (b) demonstration, to the satisfaction of
the United States Department of Commerce, that no individual or entity is able
to exercise market

 

6

 

 

power with respect to registrations or with
respect to registration data used for development of value-added products and
services by third parties.

 

3.3.8                        To comply with
applicable statutes and regulations and for other reasons, ICANN may from time
to time adopt policies and specifications establishing limits (a) on the
Personal Data concerning Registered Names that Registrar may make available to
the public through a public-access service described in this
Subsection 3.3 and (b) on the manner in which Registrar may make such
data available.  In the event ICANN
adopts any such policy, Registrar shall abide by it.

 

3.4                                 Retention of Registered
Name Holder and Registration Data.

 

3.4.1                        During the Term of this
Agreement, Registrar shall maintain its own electronic database, as updated
from time to time, containing data for each active Registered Name sponsored by
it within each TLD for which it is accredited. The data for each such
registration shall include the elements listed in Subsections 3.3.1.1 through 3.3.1.8;
the name and (where available) postal address, e-mail address, voice telephone
number, and fax number of the billing contact; and any other Registry Data that
Registrar has submitted to the Registry Operator or placed in the Registry
Database under Subsection 3.2.

 

3.4.2                        During the Term of this
Agreement and for three years thereafter, Registrar (itself or by its agent(s))
shall maintain the following records relating to its dealings with the Registry
Operator(s) and Registered Name Holders:

 

3.4.2.1               In electronic form, the
submission date and time, and the content, of all registration data (including
updates) submitted in electronic form to the Registry Operator(s);

 

3.4.2.2               In electronic, paper, or
microfilm form, all written communications constituting registration
applications, confirmations, modifications, or terminations and related
correspondence with Registered Name Holders, including registration contracts;
and

 

3.4.2.3               In electronic form, records of
the accounts of all Registered Name Holders with Registrar, including dates and
amounts of all payments and refunds.

 

3.4.3                        During the Term of this
Agreement and for three years thereafter, Registrar shall make these records
available for inspection and copying by ICANN upon reasonable notice. ICANN
shall not disclose the content of such records except as expressly permitted by
an ICANN specification or policy.

 

7

 

3.5                                 Rights in Data.
Registrar disclaims all rights to exclusive ownership or use of the data
elements listed in Subsections 3.2.1.1 through 3.2.1.3 for all Registered Names
submitted by Registrar to the Registry Database for, or sponsored by Registrar
in, each TLD for which it is accredited. Registrar does not disclaim rights in
the data elements listed in Subsections 3.2.1.4 through 3.2.1.6 and Subsections
3.3.1.3 through 3.3.1.8 concerning active Registered Names sponsored by it in
each TLD for which it is accredited, and agrees to grant non-exclusive,
irrevocable, royalty-free licenses to make use of and disclose the data
elements listed in Subsections 3.2.1.4 through 3.2.1.6 and 3.3.1.3 through
3.3.1.8 for the purpose of providing a service or services (such as a Whois
service under Subsection 3.3.4) providing interactive, query-based public
access. Upon a change in sponsorship from Registrar of any Registered Name in a
TLD for which it is accredited, Registrar acknowledges that the registrar
gaining sponsorship shall have the rights of an owner to the data elements
listed in Subsections 3.2.1.4 through 3.2.1.6 and 3.3.1.3 through 3.3.1.8
concerning that Registered Name, with Registrar also retaining the rights of an
owner in that data. Nothing in this Subsection prohibits Registrar from
(1) restricting bulk public access to data elements in a manner consistent
with this Agreement and any ICANN specifications or policies or
(2) transferring rights it claims in data elements subject to the
provisions of this Subsection.

 

3.6                                 Data Escrow.
During the Term of this Agreement, on a schedule, under the terms, and in the
format specified by ICANN, Registrar shall submit an electronic copy of the
database described in Subsection 3.4.1 to ICANN or, at Registrar’s
election and at its expense, to a reputable escrow agent mutually approved by
Registrar and ICANN, such approval also not to be unreasonably withheld by
either party. The data shall be held under an agreement among Registrar, ICANN,
and the escrow agent (if any) providing that (1) the data shall be
received and held in escrow, with no use other than verification that the
deposited data is complete, consistent, and in proper format, until released to
ICANN; (2) the data shall be released from escrow upon expiration without
renewal or termination of this Agreement; and (3) ICANN’s rights under the
escrow agreement shall be assigned with any assignment of this Agreement. The
escrow shall provide that in the event the escrow is released under this
Subsection, ICANN (or its assignee) shall have a non-exclusive, irrevocable,
royalty-free license to exercise (only for transitional purposes) or have exercised
all rights necessary to provide Registrar Services.

 

3.7                                 Business Dealings,
Including with Registered Name Holders.

 

3.7.1                        In the event ICANN adopts a
specification or policy, supported by a consensus of ICANN-Accredited
registrars, establishing or approving a Code of Conduct for ICANN-Accredited
registrars, Registrar shall abide by that Code.

 

3.7.2                        Registrar shall abide by
applicable laws and governmental regulations.

 

3.7.3                        Registrar shall not represent
to any actual or potential Registered Name Holder that Registrar enjoys access
to a registry for which

 

8

 

Registrar is Accredited that is superior to that
of any other registrar Accredited for that registry.

 

3.7.4                        Registrar shall not activate
any Registered Name unless and until it is satisfied that it has received a
reasonable assurance of payment of its registration fee. For this purpose, a
charge to a credit card, general commercial terms extended to creditworthy
customers, or other mechanism providing a similar level of assurance of payment
shall be sufficient, provided that the obligation to pay becomes final and
non-revocable by the Registered Name Holder upon activation of the
registration.

 

3.7.5                        Registrar shall register
Registered Names to Registered Name Holders only for fixed periods. At the
conclusion of the registration period, failure by or on behalf of the
Registered Name Holder to pay a renewal fee within the time specified in a
second notice or reminder shall, in the absence of extenuating circumstances,
result in cancellation of the registration. In the event that ICANN adopts a
specification or policy concerning procedures for handling expiration of
registrations, Registrar shall abide by that specification or policy.

 

3.7.6                        Registrar shall not insert or
renew any Registered Name in any registry for which Registrar is accredited by
ICANN in a manner contrary to an ICANN policy stating a list or specification
of excluded Registered Names that is in effect at the time of insertion or
renewal.

 

3.7.7                        Registrar shall
require all Registered Name Holders to enter into an electronic or paper
registration agreement with Registrar including at least the following
provisions:

 

3.7.7.1               The Registered Name Holder
shall provide to Registrar accurate and reliable contact details and promptly
correct and update them during the term of the Registered Name registration,
including: the full name, postal address, e-mail address, voice telephone
number, and fax number if available of the Registered Name Holder; name of
authorized person for contact purposes in the case of an Registered Name Holder
that is an organization, association, or corporation; and the data elements
listed in Subsections 3.3.1.2, 3.3.1.7 and 3.3.1.8.

 

3.7.7.2               A Registered Name Holder’s
willful provision of inaccurate or unreliable information, its willful failure
promptly to update information provided to Registrar, or its failure to respond
for over fifteen calendar days to inquiries by Registrar concerning the
accuracy of contact details associated with the Registered Name Holder’s
registration shall constitute a material breach of the Registered Name.

 

9

 

 

Holder-registrar contract and be a basis for
cancellation of the Registered Name registration.

 

3.7.7.3               Any Registered Name Holder that
intends to license use of a domain name to a third party is nonetheless the
Registered Name Holder of record and is responsible for providing its own full
contact information and for providing and updating accurate technical and
administrative contact information adequate to facilitate timely resolution of
any problems that arise in connection with the Registered Name. A Registered
Name Holder licensing use of a Registered Name according to this provision
shall accept liability for harm caused by wrongful use of the Registered Name,
unless it promptly discloses the identity of the licensee to a party providing
the Registered Name Holder reasonable evidence of actionable harm.

 

3.7.7.4               Registrar shall provide notice
to each new or renewed Registered Name Holder stating:

 

3.7.7.4.1                              The
purposes for which any Personal Data collected from the applicant are intended;

 

3.7.7.4.2                              The
intended recipients or categories of recipients of the data (including the
Registry Operator and others who will receive the data from Registry Operator);

 

3.7.7.4.3                              Which
data are obligatory and which data, if any, are voluntary; and

 

3.7.7.4.4                              How
the Registered Name Holder or data subject can access and, if necessary,
rectify the data held about them.

 

3.7.7.5               The Registered Name Holder
shall consent to the data processing referred to in Subsection 3.7.7.4.

 

3.7.7.6               The Registered Name Holder
shall represent that notice has been provided equivalent to that described in
Subsection 3.7.7.4 to any third-party individuals whose Personal Data are
supplied to Registrar by the Registered Name Holder, and that the Registered
Name Holder has obtained consent equivalent to that referred to in
Subsection 3.7.7.5 of any such third-party individuals.

 

3.7.7.7               Registrar shall agree that it
will not process the Personal Data collected from the Registered Name Holder in
a way incompatible with the purposes and other limitations about

 

10

 

which it has provided notice to the Registered
Name Holder in accordance with Subsection 3.7.7.4 above.

 

3.7.7.8               Registrar shall agree that it
will take reasonable precautions to protect Personal Data from loss, misuse,
unauthorized access or disclosure, alteration, or destruction.

 

3.7.7.9               The Registered Name Holder
shall represent that, to the best of the Registered Name Holder’s knowledge and
belief, neither the registration of the Registered Name nor the manner in which
it is directly or indirectly used infringes the legal rights of any third
party.

 

3.7.7.10         For
the adjudication of disputes concerning or arising from use of the Registered
Name, the Registered Name Holder shall submit, without prejudice to other
potentially applicable jurisdictions, to the jurisdiction of the courts
(1) of the Registered Name Holder’s domicile and (2) where Registrar
is located.

 

3.7.7.11         The Registered Name Holder shall agree that its registration
of the Registered Name shall be subject to suspension, cancellation, or
transfer pursuant to any ICANN adopted specification or policy, or pursuant to
any registrar or registry procedure not inconsistent with an ICANN adopted
specification or policy, (1) to correct mistakes by Registrar or the Registry
Operator in registering the name or (2) for the resolution of disputes
concerning the Registered Name.

 

3.7.7.12         The Registered Name Holder shall indemnify and hold harmless
the Registry Operator and its directors, officers, employees, and agents from
and against any and all claims, damages, liabilities, costs, and expenses
(including reasonable legal fees and expenses) arising out of or related to the
Registered Name Holder’s domain name registration.

 

3.7.8                        Registrar shall abide by any
specifications or policies established according to Section 4 requiring
reasonable and commercially practicable (a) verification, at the time of
registration, of contact information associated with a Registered Name
sponsored by Registrar or (b) periodic re-verification of such
information. Registrar shall, upon notification by any person of an inaccuracy
in the contact information associated with a Registered Name sponsored by
Registrar, take reasonable steps to investigate that claimed inaccuracy. In the
event Registrar learns of inaccurate contact

 

11

 

information associated with a Registered Name it
sponsors, it shall take reasonable steps to correct that inaccuracy.

 

3.7.9                        Registrar shall abide by any ICANN
adopted specifications or policies prohibiting or restricting warehousing of or
speculation in domain names by registrars.

 

3.7.10                  Nothing in this Agreement prescribes or limits
the amount Registrar may charge Registered Name Holders for registration of
Registered Names.

 

3.8                                 Domain-Name Dispute
Resolution. During the Term of this Agreement, Registrar shall have in
place a policy and procedures for resolution of disputes concerning Registered
Names. Until different policies and procedures are established by ICANN under
Section 4, Registrar shall comply with the Uniform Domain Name Dispute
Resolution Policy identified on ICANN’s website
(www.icann.org/general/consensus-policies.htm).

 

3.9                                 Accreditation Fees. As
a condition of accreditation, Registrar shall pay accreditation fees to ICANN.
These fees consist of yearly and variable fees.

 

3.9.1                        Yearly Accreditation Fee.
Registrar shall pay ICANN a yearly accreditation fee in an amount established
by the ICANN Board of Directors, in conformity with ICANN’s bylaws and articles
of incorporation. This yearly accreditation fee shall not exceed US$4,000 for
the first TLD for which Registrar is Accredited plus US$500 for each additional
TLD for which Registrar is Accredited at any time during the year. Payment of
the yearly fee shall be due within thirty days after invoice from ICANN.

 

3.9.2                        Variable Accreditation Fee.
Registrar shall pay the variable accreditation fees established by the ICANN
Board of Directors, in conformity with ICANN’s bylaws and articles of
incorporation, provided that in each case such fees are reasonably allocated
among all registrars that contract with ICANN and that any such fees must be
expressly approved by registrars accounting, in the aggregate, for payment of
two-thirds of all registrar-level fees. 
Registrar shall pay such fees in a timely manner for so long as all
material terms of this Agreement remain in full force and effect, and
notwithstanding the pendency of any dispute between Registrar and ICANN.

 

3.9.3                        On reasonable notice given by
ICANN to Registrar, accountings submitted by Registrar shall be subject to
verification by an audit of Registrar’s books and records by an independent
third-party that shall preserve the confidentiality of such books and records
(other than its findings as to the accuracy of, and any necessary corrections
to, the accountings).

 

12

 

3.10                           Insurance. Registrar shall maintain in force commercial
general liability insurance with policy limits of at least US$500,000 covering
liabilities arising from Registrar’s registrar business during the term of this
Agreement.

 

4  PROCEDURES
FOR ESTABLISHMENT OR REVISION OF SPECIFICATIONS AND POLICIES.

 

4.1                                 Registrar’s Ongoing
Obligation to Comply With New or Revised Specifications and Policies.
During the Term of this Agreement, Registrar shall comply with the terms of
this Agreement on the schedule set forth in Subsection 4.4, with

 

4.1.1                        new or revised specifications
(including forms of agreement to which Registrar is a party) and policies
established by ICANN as Consensus Policies in the manner described in
Subsection 4.3,

 

4.1.2                        in cases where:

 

4.1.2.1               this Agreement expressly
provides for compliance with revised specifications or policies established in
the manner set forth in one or more subsections of this Section 4; or

 

4.1.2.2               the specification or policy
concerns one or more topics described in Subsection 4.2.

 

4.2                                 Topics for New and
Revised Specifications and Policies. New and revised
specifications and policies may be established on the following topics:

 

4.2.1                        issues for which uniform or
coordinated resolution is reasonably necessary to facilitate interoperability,
technical reliability, and/or operational stability of Registrar Services,
Registry Services, the DNS, or the Internet;

 

4.2.2                        registrar policies reasonably
necessary to implement ICANN policies or specifications relating to a DNS registry
or to Registry Services;

 

4.2.3                        resolution of disputes
concerning the registration of Registered Names (as opposed to the use of such
domain names), including where the policies take into account use of the domain
names;

 

4.2.4                        principles for allocation of
Registered Names (e.g., first-come/first-served, timely renewal, holding period
after expiration);

 

4.2.5                        prohibitions on warehousing of
or speculation in domain names by registries or registrars;

 

4.2.6                        maintenance of and access to
accurate and up-to-date contact information regarding Registered Names and
nameservers;

 

4.2.7                        reservation of Registered Names
that may not be registered initially or that may not be renewed due to reasons
reasonably related to (a) avoidance of confusion among or misleading of
users, (b) intellectual

 

13

 

property, or (c) the technical management
of the DNS or the Internet (e.g., “example.com” and names with
single-letter/digit labels);

 

4.2.8                        procedures to avoid disruptions
of registration due to suspension or termination of operations by a registry
operator or a registrar, including allocation of responsibility among
continuing registrars of the Registered Names sponsored in a TLD by a registrar
losing accreditation; and

 

4.2.9                        the transfer of registration
data upon a change in registrar sponsoring one or more Registered Names.

 

Nothing in this Subsection 4.2 shall limit
Registrar’s obligations as set forth elsewhere in this Agreement.

 

4.3                                 Manner of Establishment of New and
Revised Specifications and Policies.

 

4.3.1                        “Consensus
Policies” are those specifications or policies established based on a consensus
among Internet stakeholders represented in the ICANN process, as demonstrated
by (a) action of the ICANN Board of Directors establishing the
specification or policy, (b) a recommendation, adopted by at least a
two-thirds vote of the council of the ICANN Supporting Organization to which
the matter is delegated, that the specification or policy should be
established, and (c) a written report and supporting materials (which must
include all substantive submissions to the Supporting Organization relating to
the proposal) that (i) documents the extent of agreement and disagreement
among impacted groups, (ii) documents the outreach process used to seek to
achieve adequate representation of the views of groups that are likely to be
impacted, and (iii) documents the nature and intensity of reasoned support
and opposition to the proposed policy.

 

4.3.2                        In the event that Registrar
disputes the presence of such a consensus, it shall seek review of that issue
from an Independent Review Panel established under ICANN’s bylaws.  Such review must be sought within fifteen
working days of the publication of the Board’s action establishing the policy.
The decision of the panel shall be based on the report and supporting materials
required by Subsection 4.3.1. In the event that Registrar seeks review and
the Independent Review Panel sustains the Board’s determination that the policy
is based on a consensus among Internet stakeholders represented in the ICANN
process, then Registrar must implement such policy unless it promptly seeks and
obtains a stay or injunctive relief under Subsection 5.6.

 

4.3.3                        If, following a decision by the
Independent Review Panel convened under Subsection 4.3.2, Registrar still
disputes the presence of such a consensus, it may seek further review of that
issue within fifteen

 

14

 

working days of publication of the decision in
accordance with the dispute resolution procedures set forth in
Subsection 5.6; provided, however, that Registrar must continue to
implement the policy unless it has obtained a stay or injunctive relief under
Subsection 5.6 or a final decision is rendered in accordance with the
provisions of Subsection 5.6 that relieves Registrar of such obligation.  The decision in any such further review shall
be based on the report and supporting materials required by
Subsection 4.3.1.

 

4.3.4                        A specification or policy
established by the ICANN Board of Directors on a temporary basis, without a
prior recommendation by the council of an ICANN Supporting Organization, shall
also be considered to be a Consensus Policy if adopted by the ICANN Board of
Directors by a vote of at least two-thirds of its members, so long as the Board
reasonably determines that immediate temporary establishment of a specification
or policy on the subject is necessary to maintain the operational stability of
Registrar Services, Registry Services, the DNS, or the Internet, and that the
proposed specification or policy is as narrowly tailored as feasible to achieve
those objectives.  In establishing any
specification or policy under this provision, the ICANN Board of Directors
shall state the period of time for which the specification or policy is temporarily
adopted and shall immediately refer the matter to the appropriate Supporting
Organization for its evaluation and review with a detailed explanation of its
reasons for establishing the temporary specification or policy and why the
Board believes the policy should receive the consensus support of Internet
stakeholders. If the period of time for which the specification or policy is
adopted exceeds ninety days, the Board shall reaffirm its temporary
establishment every ninety days for a total period not to exceed one year, in
order to maintain such specification or policy in effect until such time as it
meets the standard set forth in Subsection 4.3.1.  If the standard set forth in
Subsection 4.3.1 is not met within the temporary period set by the Board,
or the council of the Supporting Organization to which it has been referred
votes to reject the temporary specification or policy, it will no longer be a “Consensus
Policy.”

 

4.3.5                        For all purposes under this
Agreement, the policies specifically identified by ICANN on its website
(www.icann.org/general/consensus-policies.htm) at the date of this Agreement as
having been adopted by the ICANN Board of Directors before the date of this
Agreement shall be treated in the same manner and have the same effect as “Consensus
Policies” and accordingly shall not be subject to review under
Subsection 4.3.2.

 

4.3.6                        In the event that, at the time
the ICANN Board of Directors establishes a specification or policy under
Subsection 4.3.1 during the Term of this Agreement, ICANN does not have in
place an Independent Review Panel established under ICANN’s bylaws, the
fifteen-working-day period allowed under Subsection 4.3.2 to seek review
shall be

 

15

 

 

extended until fifteen working days after ICANN
does have such an Independent Review Panel in place and Registrar shall not be
obligated to comply with the specification or policy in the interim.

 

4.4                                 Time Allowed for Compliance. Registrar shall be afforded a
reasonable period of time after receiving notice of the establishment of a
specification or policy under Subsection 4.3 in which to comply with that
specification or policy, taking into account any urgency involved.

 

5  MISCELLANEOUS
PROVISIONS.

 

5.1                                 Specific Performance. While this Agreement is in effect,
either party may seek specific performance of any provision of this Agreement
in the manner provided in Section 5.6 below, provided the party seeking
such performance is not in material breach of its obligations.

 

5.2                                 Termination of Agreement by Registrar. This Agreement may be terminated before
its expiration by Registrar by giving ICANN thirty days written notice.  Upon such termination by Registrar, Registrar
shall not be entitled to any refund of fees paid to ICANN pursuant to this
Agreement.

 

5.3                                 Termination of Agreement by ICANN. This Agreement may be terminated before
its expiration by ICANN in any of the following circumstances:

 

5.3.1                        There was a material
misrepresentation, material inaccuracy, or materially misleading statement in
Registrar’s application for accreditation or any material accompanying the
application.

 

5.3.2                        Registrar:

 

5.3.2.1               is convicted by a court of
competent jurisdiction of a felony or other serious offense related to financial
activities, or is judged by a court of competent jurisdiction to have committed
fraud or breach of fiduciary duty, or is the subject of a judicial
determination that ICANN reasonably deems as the substantive equivalent of
those offenses; or

 

5.3.2.2               is disciplined by the
government of its domicile for conduct involving dishonesty or misuse of funds
of others.

 

5.3.3                        Any officer or director of
Registrar is convicted of a felony or of a misdemeanor related to financial
activities, or is judged by a court to have committed fraud or breach of
fiduciary duty, or is the subject of a judicial determination that ICANN deems
as the substantive equivalent of any of these; provided, such officer or
director is not removed in such circumstances.

 

5.3.4                        Registrar fails to cure any
breach of this Agreement (other than a failure to comply with a policy adopted
by ICANN during the term of this Agreement as to which Registrar is seeking, or
still has time to seek, review under Subsection 4.3.2 of whether a consensus
is

 

16

 

present) within fifteen working days after ICANN
gives Registrar notice of the breach.

 

5.3.5                        Registrar fails to comply with
a ruling granting specific performance under Subsections 5.1 and 5.6.

 

5.3.6                        Registrar continues acting in a
manner that ICANN has reasonably determined endangers the stability or
operational integrity of the Internet after receiving three days notice of that
determination.

 

5.3.7                        Registrar becomes bankrupt or
insolvent.

 

This
Agreement may be terminated in circumstances described in Subsections 5.3.1 —
5.3.6 above only upon fifteen days written notice to Registrar (in the case of
Subsection 5.3.4 occurring after Registrar’s failure to cure), with
Registrar being given an opportunity during that time to initiate arbitration
under Subsection 5.6 to determine the appropriateness of termination under
this Agreement. In the event Registrar initiates litigation or arbitration
concerning the appropriateness of termination by ICANN, the termination shall
be stayed an additional thirty days to allow Registrar to obtain a stay of
termination under Subsection 5.6 below. If Registrar acts in a manner that
ICANN reasonably determines endangers the stability or operational integrity of
the Internet and upon notice does not immediately cure, ICANN may suspend this
Agreement for five working days pending ICANN’s application for more extended
specific performance or injunctive relief under Subsection 5.6.  This Agreement may be terminated immediately
upon notice to Registrar in circumstance described in Subsection 5.3.7
above.

 

5.4                                 Term of Agreement; Renewal; Right to
Substitute Updated Agreement. This Agreement shall be effective on the
Effective Date and shall have an initial term running until the Expiration
Date, unless sooner terminated. Thereafter, if Registrar seeks to continue its
accreditation, it may apply for renewed accreditation, and shall be entitled to
renewal provided it meets the ICANN-adopted specification or policy on
accreditation criteria then in effect, is in compliance with its obligations
under this Agreement, as it may be amended, and agrees to be bound by terms and
conditions of the then-current Registrar accreditation agreement (which may
differ from those of this Agreement) that ICANN adopts in accordance with
Subsection 2.3 and Subsection 4.3. 
In connection with renewed accreditation, Registrar shall confirm its
assent to the terms and conditions of the then-current Registrar accreditation
agreement by signing that accreditation agreement. In the event that, during
the Term of this Agreement, ICANN posts on its web site an updated form of
registrar accreditation agreement applicable to Accredited registrars,
Registrar (provided it has not received (1) a notice of breach that it has
not cured or (2) a notice of termination of this Agreement under
Subsection 5.3 above) may elect, by giving ICANN written notice, to enter
an agreement in the updated form in place of this Agreement. In the event of
such election, Registrar and ICANN shall promptly sign a new accreditation
agreement that contains the provisions of the updated form posted on the web
site, with the length of the term of the substituted

 

17

 

agreement as stated in the updated form posted
on the web site, calculated as if it commenced on the date this Agreement was
made, and this Agreement will be deemed terminated.

 

5.5                                 Addition or Deletion of
TLDs for Which Registrar Accredited. On the Effective Date,
Registrar shall be accredited according to Subsection 2.1 for each TLD as
to which an appendix executed by both parties is attached to this
Agreement.  During the Term of this
Agreement, Registrar may request accreditation for any additional TLD(s) by
signing an additional appendix for each additional TLD in the form prescribed by
ICANN and submitting the appendix to ICANN. 
In the event ICANN agrees to the request, ICANN will sign the additional
appendix and return a copy of it to Registrar. 
The mutually signed appendix shall thereafter be an appendix to this
Agreement. During the Term of this Agreement, Registrar may abandon its
accreditation for any TLD under this Agreement (provided that Registrar will
thereafter remain accredited for at least one TLD under this Agreement) by
giving ICANN written notice specifying the TLD as to which accreditation is
being abandoned. The abandonment shall be effective thirty days after the
notice is given.

 

5.6                                 Resolution of Disputes
Under this Agreement. Disputes arising under or in
connection with this Agreement, including (1) disputes arising from ICANN’s
failure to renew Registrar’s accreditation and (2) requests for specific
performance, shall be resolved in a court of competent jurisdiction or, at the
election of either party, by an arbitration conducted as provided in this
Subsection 5.6 pursuant to the International Arbitration Rules of the
American Arbitration Association (“AAA”). 
The arbitration shall be conducted in English and shall occur in Los
Angeles County, California, USA. There shall be three arbitrators: each party
shall choose one arbitrator and, if those two arbitrators do not agree on a
third arbitrator, the third shall be chosen by the AAA.  The parties shall bear the costs of the
arbitration in equal shares, subject to the right of the arbitrators to
reallocate the costs in their award as provided in the AAA rules.  The parties shall bear their own attorneys’
fees in connection with the arbitration, and the arbitrators may not reallocate
the attorneys’ fees in conjunction with their award. The arbitrators shall
render their decision within ninety days of the conclusion of the arbitration
hearing.  In the event Registrar
initiates arbitration to contest the appropriateness of termination of this
Agreement by ICANN, Registrar may at the same time request that the arbitration
panel stay the termination until the arbitration decision is rendered, and that
request shall have the effect of staying the termination until the arbitration
panel has granted an ICANN request for specific performance and Registrar has
failed to comply with such ruling.  In
the event Registrar initiates arbitration to contest an Independent Review
Panel’s decision under Subsection 4.3.3 sustaining the Board’s
determination that a specification or policy is supported by consensus,
Registrar may at the same time request that the arbitration panel stay the
requirement that it comply with the policy until the arbitration decision is
rendered, and that request shall have the effect of staying the requirement
until the decision or until the arbitration panel has granted an ICANN request
for lifting of the stay. In all litigation involving ICANN concerning this
Agreement (whether in a case where arbitration has not been elected or to
enforce an arbitration award), jurisdiction

 

18

 

 

and exclusive venue for such litigation shall be
in a court located in Los Angeles, California, USA; however, the parties shall
also have the right to enforce a judgment of such a court in any court of
competent jurisdiction.  For the purpose
of aiding the arbitration and/or preserving the rights of the parties during
the pendency of an arbitration, the parties shall have the right to seek
temporary or preliminary injunctive relief from the arbitration panel or in a
court located in Los Angeles, California, USA, which shall not be a waiver of
this arbitration agreement.

 

5.7                                 Limitations on Monetary
Remedies for Violations of this Agreement. ICANN’s aggregate
monetary liability for violations of this Agreement shall not exceed the amount
of accreditation fees paid by Registrar to ICANN under Subsection 3.9 of
this Agreement. Registrar’s monetary liability to ICANN for violations of this
Agreement shall be limited to accreditation fees owing to ICANN under this
Agreement. In no event shall either party be liable for special, indirect,
incidental, punitive, exemplary, or consequential damages for any violation of
this Agreement.

 

5.8                                 Handling by ICANN of
Registrar-Supplied Data. Before receiving any Personal
Data from Registrar, ICANN shall specify to Registrar in writing the purposes
for and conditions under which ICANN intends to use the Personal Data.  ICANN may from time to time provide Registrar
with a revised specification of such purposes and conditions, which specification
shall become effective no fewer than thirty days after it is provided to
Registrar.  ICANN shall not use Personal
Data provided by Registrar for a purpose or under conditions inconsistent with
the specification in effect when the Personal Data was provided.  ICANN shall take reasonable steps to avoid
uses of the Personal Data by third parties inconsistent with the specification.

 

5.9                                 Assignment.
Either party may assign or transfer this Agreement only with the prior written
consent of the other party, which shall not be unreasonably withheld, except
that ICANN may, with the written approval of the United States Department of
Commerce, assign this agreement by giving Registrar written notice of the
assignment. In the event of assignment by ICANN, the assignee may, with the
approval of the United States Department of Commerce, revise the definition of “Consensus
Policy” to the extent necessary to meet the organizational circumstances of the
assignee, provided the revised definition requires that Consensus Policies be
based on a demonstrated consensus of Internet stakeholders.

 

5.10                           No Third-Party Beneficiaries.
This Agreement shall not be construed to create any obligation by either ICANN
or Registrar to any non-party to this Agreement, including any Registered Name
Holder.

 

5.11                           Notices, Designations, and
Specifications. All notices to be given under this Agreement shall be given
in writing at the address of the appropriate party as set forth below, unless
that party has given a notice of change of address in writing. Any notice
required by this Agreement shall be deemed to have been properly given when
delivered in person, when sent by electronic facsimile with receipt of
confirmation of delivery, or when scheduled for delivery by internationally

 

19

 

recognized courier service. Designations and
specifications by ICANN under this Agreement shall be effective when written
notice of them is deemed given to Registrar.

 

If to ICANN, addressed to:

 

Internet Corporation for Assigned Names and
Numbers

Registrar Accreditation

4676 Admiralty Way, Suite 330

Marina del Rey, California 90292 USA

Attention: General Counsel

Telephone: 1/310/823-9358

Facsimile: 1/310/823-8649

 

If to Registrar, addressed to:

 

Tucows.com Co. 

a Nova Scotia Corporation 

96 Mowat Ave. 

Toronto, Ontario M6K 3M1 

Canada

 

Attention: James Woods

Registrar Website URL: www.tucows.com

Telephone: 416-538-5453

Facsimile: 416-531-5584

e-mail: jwoods@tucows.com

 

5.12                           Dates and Times. All
dates and times relevant to this Agreement or its performance shall be computed
based on the date and time observed in Los Angeles, California, USA.

 

5.13                           Language. All
notices, designations, and specifications made under this Agreement shall be in
the English language.

 

5.14                           Amendments and Waivers. No
amendment, supplement, or modification of this Agreement or any provision
hereof shall be binding unless executed in writing by both parties. No waiver
of any provision of this Agreement shall be binding unless evidenced by a
writing signed by the party waiving compliance with such provision. No waiver
of any of the provisions of this Agreement shall be deemed or shall constitute
a waiver of any other provision hereof, nor shall any such waiver constitute a
continuing waiver unless otherwise expressly provided.

 

5.15                           Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.

 

5.16                           Entire Agreement.
Except to the extent (a) expressly provided in a written agreement
executed by both parties concurrently herewith or (b) of written
assurances provided by Registrar to ICANN in connection with its Accreditation,
this Agreement (including the appendices, which form part of it) constitutes
the

 

20

 

entire agreement of the parties pertaining to
the accreditation of Registrar and supersedes all prior agreements,
understandings, negotiations and discussions, whether oral or written, between
the parties on that subject.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed in duplicate by their duly authorized
representatives.

 

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
						

 

21

 

.BIZ APPENDIX

 

The Internet
Corporation for Assigned Names and Numbers, a California non-profit, public
benefit corporation (“ICANN”), and Tucows.com
Co., a Nova Scotia Corporation (“Registrar”) have entered into a
Registrar Accreditation Agreement (“Registrar Accreditation Agreement”), of
which this appendix (“.biz Appendix”)
is a part.

 

Registrar
wishes to be accredited in the .biz TLD pursuant to and subject to the
Registrar Accreditation Agreement and ICANN wishes to accredit Registrar in the
..biz TLD.  Pursuant to and subject to the
Registrar Accreditation Agreement, Registrar and ICANN hereby agree as follows:

 

1.                                       Definitions. All
initially capitalized terms not otherwise defined herein shall have the
definitions assigned to such terms in the Registrar Accreditation Agreement.

 

2.                                       Registrar Election.
Registrar hereby elects and agrees to become accredited by ICANN to provide
Registration Services in the .biz TLD.

 

3.                                       ICANN’s Acceptance.
ICANN hereby accepts Registrar’s election to become accredited by ICANN to
provide Registration Services in the .biz TLD.

 

IN WITNESS
WHEREOF, the parties hereto have caused this .biz
Appendix to be executed by their duly authorized representatives.

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  6/21/05

  	
   

  
						

 

 

.COM APPENDIX

 

The Internet
Corporation for Assigned Names and Numbers, a California non-profit, public
benefit corporation (“ICANN”), and Tucows.com
Co., a Nova Scotia Corporation (“Registrar”) have entered into a
Registrar Accreditation Agreement (“Registrar Accreditation Agreement”), of
which this appendix (“.com Appendix”)
is a part.

 

Registrar
wishes to be accredited in the .com TLD pursuant to and subject to the
Registrar Accreditation Agreement and ICANN wishes to accredit Registrar in the
..com TLD.  Pursuant to and subject to the
Registrar Accreditation Agreement, Registrar and ICANN hereby agree as follows:

 

1.                                       Definitions. All
initially capitalized terms not otherwise defined herein shall have the
definitions assigned to such terms in the Registrar Accreditation Agreement.

 

2.                                       Registrar Election.
Registrar hereby elects and agrees to become accredited by ICANN to provide
Registration Services in the .com TLD.

 

3.                                       ICANN’s Acceptance.
ICANN hereby accepts Registrar’s election to become accredited by ICANN to
provide Registration Services in the .com TLD.

 

IN WITNESS
WHEREOF, the parties hereto have caused this .com
Appendix to be executed by their duly authorized representatives.

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  06/21/05

  	
   

  
						

 

 

.INFO APPENDIX

 

The Internet
Corporation for Assigned Names and Numbers, a California non-profit, public
benefit corporation (“ICANN”), and Tucows.com
Co., a Nova Scotia Corporation (“Registrar”) have entered into a
Registrar Accreditation Agreement (“Registrar Accreditation Agreement”), of
which this appendix (“.info Appendix”)
is a part.

 

Registrar
wishes to be accredited in the .info TLD pursuant to and subject to the
Registrar Accreditation Agreement and ICANN wishes to accredit Registrar in the
..info TLD.  Pursuant to and subject to
the Registrar Accreditation Agreement, Registrar and ICANN hereby agree as
follows:

 

1.                                       Definitions. All
initially capitalized terms not otherwise defined herein shall have the
definitions assigned to such terms in the Registrar Accreditation Agreement.

 

2.                                       Registrar Election.
Registrar hereby elects and agrees to become accredited by ICANN to provide
Registration Services in the .info TLD.

 

3.                                       ICANN’s Acceptance.
ICANN hereby accepts Registrar’s election to become accredited by ICANN to provide
Registration Services in the .info TLD.

 

IN WITNESS
WHEREOF, the parties hereto have caused this .info
Appendix to be executed by their duly authorized representatives.

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  06/21/05

  	
   

  
						

 

 

.NAME APPENDIX

 

The Internet
Corporation for Assigned Names and Numbers, a California non-profit, public
benefit corporation (“ICANN”), and Tucows.com
Co., a Nova Scotia Corporation (“Registrar”) have entered into a
Registrar Accreditation Agreement (“Registrar Accreditation Agreement”), of
which this appendix (“.name Appendix”)
is a part.

 

Registrar
wishes to be accredited in the .name TLD pursuant to and subject to the
Registrar Accreditation Agreement and ICANN wishes to accredit Registrar in the
..name TLD.  Pursuant to and subject to
the Registrar Accreditation Agreement, Registrar and ICANN hereby agree as
follows:

 

1.                                       Definitions. All
initially capitalized terms not otherwise defined herein shall have the
definitions assigned to such terms in the Registrar Accreditation Agreement.

 

2.                                       Registrar Election.
Registrar hereby elects and agrees to become accredited by ICANN to provide
Registration Services in the .name TLD.

 

3.                                       ICANN’s Acceptance.
ICANN hereby accepts Registrar’s election to become accredited by ICANN to
provide Registration Services in the .name TLD.

 

4.                                       Data Submission.
Pursuant to Subsection 3.2.1, as part of its registration for SLD E-mail
forwarding, the NameWatch Service, and Defensive Registrations, Registrar shall
submit to, or shall place in the Registry Database operated by, the Registry
Operator for the TLD that Registry Operator, consistent with Appendix C to its
Registry Agreement with ICANN, data elements Registry Operator requires be
submitted to it.

 

IN WITNESS
WHEREOF, the parties hereto have caused this .name
Appendix to be executed by their duly authorized representatives.

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  06/21/05

  	
   

  
						

 

 

.NET APPENDIX

 

The Internet
Corporation for Assigned Names and Numbers, a California non-profit, public
benefit corporation (“ICANN”), and Tucows.com
Co., a Nova Scotia Corporation (“Registrar”) have entered into a Registrar
Accreditation Agreement (“Registrar Accreditation Agreement”), of which this
appendix (“.net Appendix”) is a
part.

 

Registrar
wishes to be accredited in the .net TLD pursuant to and subject to the
Registrar Accreditation Agreement and ICANN wishes to accredit Registrar in the
..net TLD.  Pursuant to and subject to the
Registrar Accreditation Agreement, Registrar and ICANN hereby agree as follows:

 

1.                                       Definitions. All
initially capitalized terms not otherwise defined herein shall have the
definitions assigned to such terms in the Registrar Accreditation Agreement.

 

2.                                       Registrar Election.
Registrar hereby elects and agrees to become accredited by ICANN to provide
Registration Services in the .net TLD.

 

3.                                       ICANN’s Acceptance.
ICANN hereby accepts Registrar’s election to become accredited by ICANN to
provide Registration Services in the .net TLD.

 

IN WITNESS
WHEREOF, the parties hereto have caused this .net
Appendix to be executed by their duly authorized representatives.

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  06/21/05

  	
   

  
						

 

 

.ORG APPENDIX

 

The Internet
Corporation for Assigned Names and Numbers, a California non-profit, public
benefit corporation (“ICANN”), and Tucows.com
Co., a Nova Scotia Corporation (“Registrar”) have entered into a
Registrar Accreditation Agreement (“Registrar Accreditation Agreement”), of
which this appendix (“.org Appendix”)
is a part.

 

Registrar wishes
to be accredited in the .org TLD pursuant to and subject to the Registrar
Accreditation Agreement and ICANN wishes to accredit Registrar in the .org
TLD.  Pursuant to and subject to the
Registrar Accreditation Agreement, Registrar and ICANN hereby agree as follows:

 

1.                                       Definitions. All
initially capitalized terms not otherwise defined herein shall have the
definitions assigned to such terms in the Registrar Accreditation Agreement.

 

2.                                       Registrar Election.
Registrar hereby elects and agrees to become accredited by ICANN to provide
Registration Services in the .org TLD.

 

3.                                       ICANN’s Acceptance.
ICANN hereby accepts Registrar’s election to become accredited by ICANN to
provide Registration Services in the .org TLD.

 

IN WITNESS
WHEREOF, the parties hereto have caused this .org
Appendix to be executed by their duly authorized representatives.

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  06/21/05

  	
   

  
						

 

 

.PRO APPENDIX

 

ICANN and Tucows.com Co. have entered into a
Registrar Accreditation Agreement (“RAA”), of which this .pro Appendix (“Appendix”)
is a part.  Pursuant to and subject to
the RAA, Registrar and ICANN hereby agree as follows:

 

1.  Definitions.
As used in the RAA (including this appendix) with respect to the .pro TLD, all
initially capitalized terms not otherwise defined in this Appendix shall have
the definitions assigned to such terms in the RAA.

 

2.  Registrar
Election. Registrar hereby elects and agrees to become accredited by
ICANN to provide Registrar Services in the .pro TLD.

 

3.  ICANN’s
Acceptance. ICANN hereby accepts Registrar’s election to become
accredited by ICANN to provide Registrar Services in the .pro TLD.

 

IN WITNESS
WHEREOF, the parties hereto have caused this .pro Appendix to be executed by
their duly authorized representatives.

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  06/21/05

  	
   

  
						

 

 

LOGO LICENSE APPENDIX 

 

The Internet
Corporation for Assigned Names and Numbers, a California non-profit, public
benefit corporation (“ICANN”), and Tucows.com Co., a Nova Scotia Corporation (“Registrar”) have entered into a
Registrar Accreditation Agreement (“Registrar Accreditation Agreement”), of
which this appendix (“Logo License Appendix”) is a part.  Definitions in the Registrar Accreditation
Agreement apply in this Logo License Appendix.

 

Registrar
wishes to acquire from ICANN, and ICANN wishes to grant to Registrar, a license
to use the trademarks listed below the signature block of this Logo License
Appendix (“Trademarks”) in connection with Registrar’s role as an
ICANN-accredited registrar.  Pursuant to
and subject to the Registrar Accreditation Agreement, Registrar and ICANN
hereby agree as follows:

 

1  LICENSE

 

1.1                                 Grant of License.
ICANN grants to Registrar a non-exclusive, worldwide right and license to use
the Trademarks, during the term of this appendix and solely in connection with
the provision and marketing of Registrar Services in order to indicate that
Registrar is accredited as a registrar of domain names by ICANN.  Except as provided in this subsection and
Subsection 2.2 of the Registrar Accreditation Agreement, Registrar shall
not use the Trademarks, any term, phrase, or design which is confusingly
similar to the Trademarks or any portion of the Trademarks in any manner
whatsoever.

 

1.2                                 Ownership of Trademarks. Any
and all rights in the Trademarks that may be acquired by Registrar shall inure
to the benefit of, and are herby assigned to, ICANN. Registrar shall not assert
ownership of the Trademarks or any associated goodwill.

 

1.3                                 No Sublicense.
Registrar shall not sublicense any of its rights under this appendix to any
other person or entity (including any of Registrar’s resellers) without the
prior written approval of ICANN.

 

2  REGISTRATION AND ENFORCEMENT

 

2.1                                 Registration.
Registration and any other form of protection for the Trademarks shall only be
obtained by ICANN in its name and at its expense.

 

2.2                                 Enforcement.
Registrar shall promptly notify ICANN of any actual or suspected infringement
of the Trademarks by third parties, including Registrar’s resellers or
affiliates. ICANN shall have the sole discretion to initiate and maintain any
legal proceedings against such third parties; Registrar shall not take any such
actions without the prior written approval of ICANN; and ICANN shall retain any
and all recoveries from such actions.

 

2.3                                 Further Assurances.
Registrar agrees to execute such other documents and to take all such actions
as ICANN may request to effect the terms of this appendix, including providing
such materials (for example URLs and samples of any promotional materials
bearing the Trademarks), cooperation, and assistance as may be reasonably
required to assist ICANN in obtaining, maintaining, and

 

 

enforcing trademark registration(s) and any
other form of protection for the Trademarks.

 

3  TERM AND TERMINATION

 

This Logo
License Appendix shall be effective from the date it is signed below by both
parties until the Expiration Date, unless this appendix or the Registrar
Accreditation Agreement is earlier terminated. Each party shall have the right
to terminate this appendix at any time by giving the other party written
notice.  Upon expiration or termination
of this appendix, Registrar shall immediately discontinue all use of the
Trademarks.

 

IN WITNESS
WHEREOF, the parties have caused this Logo License Appendix to be executed by
their duly authorized representatives.

 

	
  ICANN

  	
  Tucows.com Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt J. Pritz

  	
   

  	
  By:

  	
  /s/ Elliot Noss

  	
   

  
	
   

  	
  Kurt J. Pritz

  	
  Name:

  	
  Elliot Noss

  	
   

  
	
   

  	
  Vice President, Business Operations

  	
  Title:

  	
  President & CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  06/21/05

  	
   

  
						

 

TRADEMARKS:

1.                                       ICANN
Accredited Registrar

2.

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