Exhibit 2.3
PUBLISHING AGREEMENT
among
NORTHERN NEW ENGLAND SPINCO INC.,
NORTHERN NEW ENGLAND TELEPHONE OPERATIONS LLC,
TELEPHONE OPERATING COMPANY OF VERMONT LLC
and
IDEARC
MEDIA CORP.
Dated
as of March 31, 2008
Table of Contents
| |
|
|
|
|
| |
|
Page |
|
ARTICLE I
DEFINITIONS
|
|
|
2 |
|
|
|
|
|
|
|
|
Section 1.1
General Rules of Construction
|
|
|
2 |
|
|
Section 1.2
Definitions
|
|
|
3 |
|
|
|
|
|
|
|
|
ARTICLE II TERM OF
AGREEMENT
|
|
|
12 |
|
|
|
|
|
|
|
|
ARTICLE III RIGHTS
AND OBLIGATIONS OF PUBLISHER
|
|
|
12 |
|
|
|
|
|
|
|
|
Section 3.1
Publication
|
|
|
12 |
|
|
Section 3.2
Premium Listings
|
|
|
13 |
|
|
Section 3.3
Phone Service Pages
|
|
|
14 |
|
|
Section 3.4
Changes To White Pages; Courtesy Classified Listings
|
|
|
15 |
|
|
Section 3.5
Editorial Discretion
|
|
|
16 |
|
|
Section 3.6
Delivery and Distribution
|
|
|
16 |
|
|
Section 3.7
Rights in the Directory Products
|
|
|
17 |
|
|
Section 3.8
Changes in Service Areas
|
|
|
18 |
|
|
Section 3.9
Open Access Termination
|
|
|
19 |
|
|
Section 3.10
Regulatory Change
|
|
|
19 |
|
|
Section 3.11
Publishing Order
|
|
|
21 |
|
|
Section 3.12
Non-Solicitation
|
|
|
22 |
|
|
Section 3.13
Non-Compete
|
|
|
22 |
|
|
|
|
|
|
|
|
ARTICLE IV RIGHTS
AND OBLIGATIONS OF SPINCO
|
|
|
24 |
|
|
|
|
|
|
|
|
Section 4.1
Delivery of Subscriber List Information and Subscriber Delivery
Information
|
|
|
24 |
|
|
Section 4.2
Official Directory Publisher Designation
|
|
|
26 |
|
|
|
|
|
|
|
|
ARTICLE V CLAIMS,
LIABILITY AND INDEMNIFICATION
|
|
|
27 |
|
|
|
|
|
|
|
|
Section 5.1
Listing Claims
|
|
|
27 |
|
|
Section 5.2
Advertising Claims
|
|
|
27 |
|
|
Section 5.3
Cooperation
|
|
|
27 |
|
|
Section 5.4
Indemnification
|
|
|
27 |
|
|
Section 5.5
Notice and Procedures
|
|
|
29 |
|
|
Section 5.6
Time Limitation
|
|
|
29 |
|
|
Section 5.7
Other Indemnification
|
|
|
29 |
|
i
Table of Contents
(continued)
| |
|
|
|
|
| |
|
Page |
|
ARTICLE VI
TERMINATION
|
|
|
30 |
|
|
|
|
|
|
|
|
Section 6.1
Termination By Publisher
|
|
|
30 |
|
|
Section 6.2
Termination By Spinco
|
|
|
31 |
|
|
Section 6.3
Transition Upon Termination
|
|
|
32 |
|
|
Section 6.4
Termination Without Prejudice
|
|
|
33 |
|
|
|
|
|
|
|
|
ARTICLE VII OTHER
DEFAULTS; LIMITATION OF LIABILITY
|
|
|
33 |
|
|
|
|
|
|
|
|
Section 7.1
Other Defaults
|
|
|
33 |
|
|
Section 7.2
Limitation of Liability
|
|
|
33 |
|
|
|
|
|
|
|
|
ARTICLE VIII
EXCUSED PERFORMANCE
|
|
|
34 |
|
|
|
|
|
|
|
|
Section 8.1
General Force Majeure
|
|
|
34 |
|
|
|
|
|
|
|
|
ARTICLE IX
MISCELLANEOUS
|
|
|
34 |
|
|
|
|
|
|
|
|
Section 9.1
Confidentiality
|
|
|
34 |
|
|
Section 9.2
Further Assurances
|
|
|
35 |
|
|
Section 9.3
No Agency; Right to Subcontract
|
|
|
35 |
|
|
Section 9.4
Governing Law; Service of Process; Jurisdiction
|
|
|
35 |
|
|
Section 9.5
Waiver of Jury Trial
|
|
|
36 |
|
|
Section 9.6
Amendments; Waivers
|
|
|
36 |
|
|
Section 9.7
No Assignment
|
|
|
36 |
|
|
Section 9.8
Notices
|
|
|
37 |
|
|
Section 9.9
Entire Agreement
|
|
|
37 |
|
|
Section 9.10
Severability
|
|
|
38 |
|
|
Section 9.11
Headings
|
|
|
38 |
|
|
Section 9.12
Counterparts
|
|
|
38 |
|
|
Section 9.13
Successors and Assigns; No Third Party Beneficiaries
|
|
|
38 |
|
|
Section 9.14
Interpretation
|
|
|
38 |
|
ii
PUBLISHING AGREEMENT
This Publishing Agreement (this
“ Agreement ”) is entered into as of
March 31, 2008, but shall not be effective until the Effective
Time, among Idearc Media Corp. (“ Publisher ”),
Northern New England Spinco Inc. (“ Spinco ”),
Northern New England Telephone Operations LLC (“ Telco
”) and Telephone Operating Company of Vermont LLC (“
VT LLC ” and together with Telco, the “
TOCs ”). Capitalized terms not otherwise defined
herein shall have the meanings assigned to such terms in
Article I.
RECITALS
WHEREAS, Verizon Communications Inc.
(“ Verizon ”), Spinco’s ultimate parent
company, and Spinco have entered into a Distribution Agreement,
dated as of January 15, 2007 (the “ Distribution
Agreement ”), pursuant to which ( i ) Verizon
shall separate the Spinco Assets (as defined in the Distribution
Agreement) from the Verizon Assets (as defined in the Distribution
Agreement) and ( ii ) Verizon shall distribute all of
the issued and outstanding shares of Spinco Common Stock to
Verizon’s stockholders (the “ Distribution
”);
WHEREAS, Spinco and FairPoint
Communications, Inc. (“ Buyer ”) have entered
into an Agreement and Plan of Merger, dated as of January 15,
2007 (the “ Merger Agreement ”), pursuant to
which Buyer will merge with and into Spinco (the “
Merger ”) immediately after the consummation of the
Distribution;
WHEREAS, Publisher, Verizon and
certain of Verizon’s Affiliates are parties to a Publishing
Agreement, dated as of November 17, 2006 (the “
Verizon Publishing Agreement ”), Section 3.8(c) of
which provides, among other things, that in the event Verizon
ceases to provide local telephone service in all or a portion of
one or more certain geographic areas (the “ Verizon
Service Areas ”), Verizon shall require the acquiring
Person to agree to enter into with Publisher, and Publisher shall
enter into with such Person, certain agreements, including an
agreement equivalent in all material respect to the Verizon
Publishing Agreement;
WHEREAS, as a result of the
Distribution and the Merger, Verizon will cease to provide local
telephone service in the Service Areas (as defined below), which
are Verizon Service Areas, and, therefore, in accordance with
Section 3.8(c) of the Verizon Publishing Agreement, Spinco, as
the acquirer of the access lines with which Verizon provides such
service, and Publisher have agreed to enter into this
Agreement;
WHEREAS, the TOCs have the right to
offer and provide local telephone service in the Service
Areas;
WHEREAS, the TOCs are required to
publish directories and deliver directories containing listings of
certain residential and business Subscribers (as defined below) in
each Service Area pursuant to ( i ) interconnection and
similar agreements with CLECs (as defined below), LECs (as defined
below) and Resellers (as defined below) and other providers of
Telecommunication Services, ( ii ) tariffs and ( iii
) laws, rules, regulations and orders of certain Governmental
Entities, in each case as the same may be in effect from time to
time (such requirements pursuant to all of the foregoing, the
“ Publishing Obligation ”); and
WHEREAS, in connection with and
furtherance of, and as consideration for, the performance by
Publisher of its obligations set forth herein, including fulfilling
the Publishing Obligation on behalf of the TOCs, Publisher will
have certain rights to use the Licensed Marks (as defined in the
Branding Agreement, dated as of the date hereof, between Buyer and
Publisher (the “ Branding Agreement ”)) on the
terms and conditions set forth in the Branding Agreement.
NOW, THEREFORE, in consideration of
the premises and of the mutual covenants, representations,
warranties and agreements herein contained, the Parties intending
to be legally bound, agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1 General Rules of
Construction . For all purposes of this Agreement: ( i
) the terms defined in this Agreement include the plural as
well as the singular; ( ii ) all references in this
Agreement to designated “Recitals”,
“Articles”, “Sections” and other
subdivisions are to the designated Recitals, Articles, Sections and
other subdivisions of the body of this Agreement; ( iii )
pronouns of either gender or neuter include, as appropriate, the
other pronoun forms; ( iv ) the words “herein,”
“hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any
particular Article, Section or other subdivision; ( v )
“or” is not exclusive; ( vi )
“including” and “includes” shall be deemed
to be followed by “but not limited to” and “but
is not limited to,” respectively; ( vii ) any
definition of or reference to any law, agreement, instrument or
other document herein shall, unless expressly stated to the
contrary, be construed as referring to such law, agreement,
instrument or other document as from time
2
to time
amended, supplemented or otherwise modified; and ( viii )
any definition of or reference to any statute shall be construed as
referring also to any rules and regulations promulgated
thereunder.
Section 1.2 Definitions .
The following definitions shall apply within this Agreement.
“ Action ” means
any action, complaint, petition, investigation, suit or other
proceeding, whether administrative, civil or criminal, in law or in
equity, or before any arbitrator or Governmental Entity.
“ Activity Default
Notice ” has the meaning set forth in
Section 6.2(d).
“ Additional Legal
Requirement ” means any change in any Legal Requirement
or any new or additional Legal Requirement; provided that,
for purposes of determining whether there has been any increase in
Publisher’s cost of fulfilling the Publishing Obligation, no
change in any Legal Requirement and no new or additional Legal
Requirement that requires or has the effect of requiring Publisher
to engage (or not to engage) in any practice in which Publisher
engaged (or refrained from engaging) prior to such change in such
Legal Requirement or such new or additional Legal Requirement shall
be an Additional Legal Requirement.
“ Affiliate ”
means a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common
control with, a specified Person. The term “control”
(including, with correlative meanings, the terms “controlled
by” and “under common control with”) means the
possession of the power to direct the management and policies of
the referenced Person through ownership of more than 50% of the
voting power in the referenced Person. A Person shall become an
Affiliate of a Party at such time as it obtains control of, or
becomes controlled by, or falls under common control with, such
Party, and shall no longer be an Affiliate of such Party from and
after the date that it ceases to control, be controlled by or be
under common control with, such Party.
“ Agreement ” has
the meaning set forth in the preamble to this Agreement.
“ Bankruptcy Code
” means the United States Bankruptcy Code (11 U.S.C.
Section 101 et seq .), as amended from time to
time, and any successor statute.
3
“ Branding Agreement
” has the meaning set forth in the ninth Recital.
“ Breach Resolution
Process ” has the meaning set forth in
Section 6.1(a).
“ Buyer ” has the
meaning set forth in the second recital of this Agreement.
“ Change of Control
” means: ( i ) an acquisition by any Person or group
of Persons of the voting stock of the referenced Person in a
transaction or series of transactions, if immediately thereafter
such acquiring Person or group has, or would have, beneficial
ownership of more than 50% of the combined voting power of the
referenced Person’s then outstanding voting stock, including
any such acquisition by way of a merger, consolidation or
reorganization (including under the Bankruptcy Code), or series of
such related transactions, involving the referenced Person, (
ii ) a sale, assignment or other transfer of all or
substantially all of the referenced Person’s assets or (
iii ) a confirmation of any plan of reorganization or
liquidation under, or sale of assets pursuant to, the Bankruptcy
Code, any out-of-court recapitalization or reorganization
transaction or exchange offer, in any case in which more than 50%
of such Person’s outstanding equity securities are issued in
exchange for all or a significant portion of such Person’s
outstanding debt or other securities, or a deed in lieu of
foreclosure or any other remedy or right at law or contract by
which substantially all of such Person’s equity securities or
assets are surrendered, assigned or otherwise transferred to
another Person.
“ Claims ” means
any and all claims, causes of action, demands, complaints,
disputes, liabilities, obligations, losses, damages, deficiencies,
penalties, settlements, judgments, actions, proceedings and suits
of whatever kind and nature.
“ CLEC ” means a
competitive local exchange carrier.
“ Commercial Agreements
” means this Agreement, the Non-Competition Agreement, the
Branding Agreement and the Listings License Agreement.
“ Confidential
Information ” means, with respect to any Party, all
information and documentation of such Party, including confidential
and/or proprietary technical or business information, confidential
marketing and business plans and customer lists; provided
that Confidential Information does not include information which (
i ) is or becomes publicly known or available through no
breach of this Agreement by the receiving Party, ( ii ) is
rightfully acquired by the receiving Party free of restrictions on
its
4
disclosure or ( iii ) is independently developed by a Party
without the use of or reference to any Confidential Information of
the other Party.
“ Cost Change Dispute
Notice ” has the meaning set forth in
Section 3.10(e).
“ Cost Change Statement
” has the meaning set forth in Section 3.10(c).
“ Cost Savings Amount
” has the meaning set forth in
Section 3.10(b)(iii).
“ Courtesy Classified
Listing ” means one appearance of a business
Subscriber’s name, address and business telephone number in
the classified section of the Yellow Pages for such
Subscriber’s Scoped Area.
“ Default Notice ”
has the meaning set forth in Section 6.1(a).
“ Directory Default
Notice ” has the meaning set forth in
Section 6.2(b).
“ Directory Product
” means a telephone directory product consisting principally
of searchable (e.g., by alphabet letter or category of products or
services) multiple telephone listings and/or classified
advertisements that is delivered or otherwise made available to end
users in tangible media (e.g., paper directories, CD-ROM),
electronic media (e.g., Internet) or digital media (e.g., PDA
download).
“ Distribution Agreement
” has the meaning set forth in the first Recital.
“ Effective Date ”
means the Distribution Date (as defined in the Distribution
Agreement).
“ Effective Time ”
means immediately after the Distribution (as defined in the
Distribution Agreement).
“ Extended Area Listings
” or “ EAS Listings ” means extended area
listings provided by LECs, CLECs or Resellers other than any of the
Spinco Parties, for areas outside the applicable Service Area that
are within a local calling area which is in part
5
within
such Service Area and are Legally Required to be included in a
directory distributed to Subscribers in such Service Area.
“ Generic Phone Service
Pages ” has the meaning set forth in
Section 3.3(a)(i).
“ Governmental Entity
” means any government or any agency, bureau, board,
commission, court, department, official, political subdivision,
tribunal or other instrumentality of any government, whether
Federal, state or local, domestic or foreign.
“ ILEC ” has the
meaning set forth in Section 3.8(a).
“ Incremental Listings
Costs ” means any (i) one-time costs Publisher may
incur in implementing any systems changes necessitated by the
inclusion of non-wireline listings of subscribers of Other Service
Providers because such listings are of a new type and
(ii) actual and incremental increase in Publisher’s
costs of fulfilling the Publishing Obligation incurred because the
inclusion of such listings causes the total number of listings in
the Primary Directories to exceed the number of listings set forth
on Schedule 1.1A, as adjusted to take into account the
addition or disposition of any Service Areas pursuant to
Section 3.8.
“ Indemnified Party
” has the meaning set forth in Section 5.5.
“ Indemnifying Party
” has the meaning set forth in Section 5.5.
“ LEC ” means a
local exchange carrier.
“ Legal Requirements
” means ( i ) the contractual obligations of
Spinco or any of its Subsidiaries related to directories under
interconnection and similar agreements or other contracts relating
to Telecommunication Services entered into between Spinco or any of
its Subsidiaries and any Other Service Providers (or assumed by
Spinco or any of its Subsidiaries pursuant to the Distribution
Agreement) and ( ii ) any order, injunction, decree,
statute, law, ordinance, principle of common law, rule, tariff,
regulation, settlement agreement, arbitration ruling or custom and
practice of any applicable regulatory agency related to directories
and applicable to Spinco or any of its Subsidiaries as a LEC (but
not any of the foregoing that is of general applicability to
businesses), in each case as now existing and as may exist at any
time during the term of this Agreement (and any renewals or
extensions thereof).
6
“ Legally Required
” means that a specified action is necessary in order to
satisfy or otherwise fulfill one or more of the Legal Requirements
or Additional Legal Requirements.
“ Licensed Marks ”
has the meaning set forth in the Branding Agreement.
“ Listings License
Agreement ” means the Listings License Agreement, dated
as of the date hereof, between the Spinco telephone operating
companies listed in Exhibit 1 thereto and Publisher.
“ Loss ” means any
cost, damage, disbursement, expense, liability, loss, obligation,
penalty or settlement, including interest or other carrying costs,
legal, accounting and other professional fees and expenses incurred
in the investigation, collection, prosecution and defense of claims
and amounts paid in settlement, that may be imposed on or otherwise
incurred or suffered by the referenced Person.
“ Material Change
” means, with respect to any Primary Directory containing
White Pages, ( i ) a change in the Publication date of such
Primary Directory of more than three months, ( ii ) a change
in the Scoped Area of such Primary Directory that has the effect of
adding or removing a number of listings equal to more than 20% of
the listings of such Primary Directory, ( iii ) a change in
the media of such Primary Directory (e.g., from paper to CD-ROM), (
iv ) charging any fee for a copy of such Primary Directory
or delivery thereof (unless a fee is charged for such Primary
Directory as of the Effective Time) or ( v ) other major
changes relating to other aspects of the Publication of such
Primary Directory that would reasonably be expected to have an
impact of similar magnitude on the Subscribers; provided
that a separation or combination of any White Pages and any Yellow
Pages that does not also involve any of the changes described above
shall not be a Material Change.
“ Material Default
” means, with respect to either Party, a breach of any
material term, condition, covenant or obligation of this Agreement,
for any reason other than those described in Article VIII,
that is so material and continuing that it has the effect of
abrogating such Party’s performance and the other
Party’s enjoyment of the benefits under this Agreement taken
as a whole, including an uncured breach of Section 9.7 with
respect to assignment of this Agreement as a whole.
“ Merger ” has the
meaning set forth in first Recital.
7
“ Merger Agreement
” has the meaning set forth in the second Recital.
“ New Customer ”
means a Subscriber to local phone service who does not currently
have any local exchange service and specifically excludes customers
who are changing their service from one LEC to another.
“ Non-Competition
Agreement ” means the Non-Competition Agreement, dated as
of the date hereof, between Spinco and Publisher.
“ Notice of Claim
” has the meaning set forth in Section 5.5.
“ Open Access
Termination ” has the meaning set forth in
Section 3.9.
“ Other Default ”
means a breach or violation of or default under this Agreement that
is not a Material Default, Service Area Default or Primary
Directory Default.
“ Other Service
Providers ” means CLECs, LECs, Resellers or other
providers of Telecommunication Services with whom the Spinco
Parties have interconnection or similar agreements or other
contracts.
“ Other Subscriber List
Information ” means a list of the names, addresses,
telephone numbers, and primary advertising classifications (as such
classifications are assigned at the time of establishment of
service) of non-Spinco Subscribers (i.e., the Subscribers of
certain Other Service Providers providing such service in the
applicable Service Area) that Spinco is Legally Required to publish
in its directories, as supplied to Publisher by Spinco, as well as
such other listing information about such Subscribers as Spinco may
be Legally Required to provide to directory publishers.
“ Party ” means
each of Publisher, on the one hand, and the Spinco Parties, on the
other hand; “ Parties ” means Publisher and the
Spinco Parties, collectively.
“ Person ” means
an association, a corporation, an individual, a partnership, a
limited liability company, a trust or any other entity or
organization, including a Governmental Entity.
8
“ Premium Listings
” means all types of listings in White Pages which are
generally offered or otherwise made available to Subscribers by, or
on behalf of, the relevant TOC, other than Primary Listings.
“ Premium Phone Service
Pages ” has the meaning set forth in
Section 3.3(a)(ii).
“ Primary Directories
” means White Pages and/or Yellow Pages directories with
respect to a particular Service Area which are Published in
accordance with the Publishing Obligation.
“ Primary Directory
Default ” has the meaning set forth in
Section 6.2(b).
“ Primary Listing
” means one appearance of ( i ) a Subscriber’s
name, address and telephone number (including any nicknames, titles
or degrees) and ( ii ) any other Subscriber information
Legally Required in the White Pages covering the Service Area in
which such Subscriber has Telecommunication Services.
“ Publish ” or
“ Publishing ” means to engage in, or the act of
engaging in, any and all activities required to discharge the
Publishing Obligation.
“ Publisher ” has
the meaning set forth in the preamble to this Agreement.
“ Publisher Premium Listings
Share ” has the meaning set forth in
Section 3.2(a).
“ Publishing Obligation
” has the meaning set forth in the seventh Recital.
“ Publishing Order
” has the meaning set forth in Section 3.11.
“ Reimbursable Increase
” has the meaning set forth in
Section 3.10(b)(ii).
“ Reseller ” means
a reseller of local exchange telephone service.
“ Scoped Area ”
means, with respect to any Directory Product, the geographic area
associated with the Primary Listings included in and serviced by
such Directory Product
9
as may
be established and modified, subject to Section 3.4, by
Publisher from time to time.
“ Service Area(s)
” means those geographic areas in which the Spinco Parties
provide local telephone service as an ILEC listed on
Schedule 1.1B, including any such areas added to
Schedule 1.1B pursuant to Section 3.8.
“ Service Area Default
” has the meaning set forth in Section 6.1(c).
“ Service Area Default
Notice ” has the meaning set forth in
Section 6.1(c).
“ Service Corp. ”
has the meaning set forth in the preamble to this Agreement.
“ Spinco ” has the
meaning set forth in the first Recital.
“ Spinco Indemnified
Parties ” has the meaning set forth in 5.4(a).
“ Spinco Parties ”
means, collectively, Spinco, Telco and VT LLC.
“ Spinco Subscriber List
Information ” means a list of the names, addresses,
telephone numbers, and primary advertising classifications (as such
classifications are assigned at the time of establishment of
service) of the Subscribers of Spinco in the applicable Service
Area, as supplied to Publisher by Spinco, and such other listing
information about such Subscribers as Spinco may be Legally
Required to provide to directory publishers.
“ Subscriber ”
means any person or business that orders and/or receives
Telecommunication Services from a provider of such services.
“ Subscriber Delivery
Information ” means a list of the names and delivery
addresses of the Subscribers of Spinco and certain Other Service
Providers as supplied to Spinco by Spinco, including Subscribers
that have elected not to be published in a Directory Product, and
such other information, such as non-confidential telephone numbers,
that Publisher and Spinco may agree from time to time is required
or useful for the complete and accurate delivery of Primary
Directories or as Spinco may be Legally Required to provide to
directory publishers.
10
“ Subscriber List
Information ” means the Spinco Subscriber List
Information and the Other Subscriber List Information.
“ Subsidiary ”
means, with respect to any Person, each other Person in which such
Person owns or controls, directly or indirectly, capital stock or
other equity interests representing at least 50% of the outstanding
voting stock or other equity interests.
“ Telecommunication
Services ” means telecommunications, internet
connectivity, broadband access, wireless communications or other
comparable or successor telephony or data products or
services.
“ Transition Costs
” has the meaning set forth in Section 6.3(a).
“ Verizon ” has
the meaning set forth in the first Recital.
“ Verizon Publishing
Agreement ” has the meaning set forth in the third
Recital.
“ Verizon Service Areas
” has the meaning set forth in the third Recital.
“ Video Services ”
means video conferencing, television, cable, direct broadcast
satellite, video on demand or other video services.
“ White Pages ”
means the information Published by Publisher with respect to any
Service Area comprised of or including the alphabetical listings of
residential and business Subscribers having Telecommunication
Services for such Service Area.
“ Yellow Pages ”
means the information Published by Publisher with respect to any
Service Area comprised of or including classified listings,
including Courtesy Classified Listings.
11
ARTICLE II
TERM
OF AGREEMENT
Subject to the provisions of
Article 6, this Agreement shall become effective as of the
Effective Time and remain in effect until November 17, 2036.
Thereafter, this Agreement shall automatically renew for additional
5-year terms unless either Party provides written termination
notice to the other Party at least 24 months prior to the end
of the then current term.
ARTICLE III
RIGHTS
AND OBLIGATIONS OF PUBLISHER
Section 3.1 Publication
.
(a) Subject to the terms of this
Agreement, Publisher shall, at no charge to the Spinco Parties,
their Subscribers, Other Service Providers or the Subscribers of
Other Service Providers, subject to Section 3.11, ( i )
Publish White Pages covering, in the aggregate, the Service Areas,
( ii ) Publish Primary Listings in the applicable White
Pages, ( iii ) to the extent it is a Legal Requirement,
Publish a Courtesy Classified Listing in the applicable Yellow
Pages for each business Subscriber (unless such Subscriber has
indicated to Publisher or any Spinco Party that it does not want
such Courtesy Classified Listing to be Published), ( iv )
co-mingle in the White Pages of such Primary Directories on a
non-discriminatory basis the Spinco Subscriber List Information
with the Other Subscriber List Information and ( v
) comply with any and all Subscriber-requested restrictions
(e.g., unlisted number requests) that are designated in the
Subscriber List Information or otherwise designated to Publisher
and are consistent with Publisher’s policies.
(b) In discharging its
obligations under this Agreement, Publisher, subject to
Article VIII, shall not take any action that shall cause any
Spinco Party or Publisher to be in violation of any Legal
Requirement, whether in effect now or in the future.
(c) Without limiting the
provisions of Section 3.1(b), Publisher shall ensure that (
i ) the appearance (including font and size) and integration
of all Subscriber List Information occurs in a non-discriminatory
manner and ( ii ) the Other Subscriber List Information is
included in the Primary Directories using the same methods and
procedures, and under the same terms and conditions, as those with
respect to the Spinco Subscriber List Information.
12
(d) Publisher shall not propose,
solicit or otherwise encourage any Additional Legal Requirement in
any Service Area that would reasonably be expected to result in any
Net Regulatory Cost Increase or any cost to Spinco without the
advance approval of Spinco. If Spinco is notified that any
applicable Governmental Entity proposes any Additional Legal
Requirement that Spinco reasonably expects would result in any Net
Regulatory Cost Increase, then Spinco will involve and solicit
advice from Publisher regarding how to respond to any such
proposal.
(e) Each of Publisher and Spinco
shall promptly notify the other of, and shall at such Party’s
request cooperate with such Party with respect to, any inquiry,
investigation, formal or informal complaint, lawsuit or docket
relating to the matters covered by this Agreement begun or
threatened by any Governmental Entity with jurisdiction over such
Party. Publisher shall cooperate with Spinco with respect to any
legal efforts to change legislation or regulations in an effort to
minimize directory publication costs. As between the Parties,
Spinco shall have sole responsibility for all discussions,
communications and other interactions with Governmental Entities
with respect to existing or prospective Legal Requirements;
provided , that Publisher may have any such discussions,
communications or interactions if it provides Spinco reasonable
prior notice and the right to participate in each of any such
discussions, communications or interactions and, in the case of
written correspondence, the right to receive and review in advance
copies thereof; and provided , further , that Spinco
shall reasonably consult with Publisher on any such discussions,
communications or interactions which relate to Publisher’s
fulfillment of the Publishing Obligation. In any discussions,
communications or interactions with Governmental Entities, each of
the Spinco Parties and Publisher shall make it clear that it does
not represent, or otherwise have authority to speak for or bind,
the other Party.
(f) For the avoidance of doubt,
it is understood that no Party shall have any liability to the
other Party for any failure to involve, solicit advice from or
consult with the other Party as required by this Section 3.1
unless and only to the extent the other Party demonstrates it has
been prejudiced by such failure.
Section 3.2 Premium
Listings .
(a) Publisher shall, at no
additional charge to the Spinco Parties, their Subscribers, Other
Service Providers or the Subscribers of Other Service Providers,
Publish the types of Premium Listings listed on Schedule 3.2,
which are the Premium Listings being offered by Spinco to Spinco
Subscribers in the Service Areas as of the date hereof, and any
additional Premium Listings that are of a type that is similar to,
and do not involve costs to Publisher that are different from the
costs associated with, any of the Premium Listings listed on
Schedule 3.2. Notwithstanding the foregoing, to the extent
revenues from such Premium Listings in a particular state exceeds
the amount set forth on Schedule 3.2 for such state (as
adjusted to reflect any price changes for such Premium Listings),
Spinco shall pay Publisher cash in an amount equal to 5% of such
excess (the
13
total of
any such amounts, the “ Publisher Premium Listings
Share ”). In the event Spinco desires to offer additional
Premium Listings that are of a type different from those currently
offered, and involve costs to Publisher that are different from the
costs associated with, any of the Premium Listings listed on
Schedule 3.2, Spinco and Publisher shall negotiate in good
faith the terms on which Publisher shall Publish such Premium
Listings.
(b) Within 60 days after
each anniversary of the Effective Date, Spinco shall provide
Publisher with a written statement setting forth the Publisher
Premium Listings Share for the twelve-month period preceding such
anniversary and shall remit to Publisher such Publisher Premium
Listings Share.
Section 3.3 Phone Service
Pages .
(a) Upon request, Publisher
shall include such phone service pages in the Primary Directories
as Spinco may provide for the specific applicable Service Area(s).
The content within such phone service pages shall not be
promotional or advertising. Publisher shall have, subject to the
terms of this Agreement (including Section 3.1(b) and (c)),
the right to exercise final editorial control, which shall be
exercised in a commercially reasonable manner and in conformity
with applicable Legal Requirements, over the Published version of
the content, design, format and location of the phone service
pages. The phone service pages in any White Pages shall consist of
two types:
(i) Generic Phone Service
Pages . At no charge to Spinco, subject to Section 3.11,
Publisher shall Publish: ( A ) any information required to
be included in the applicable White Pages by any Legal Requirement
(e.g., how to request service, contact repair service, dial
directory assistance, reach an account representative, request
buried cable locate service, and contact the special needs center
for customers with disabilities); ( B ) information about
Spinco’s emergency numbers, consumer tips and local calling
area; ( C ) non-company specific information, including long
distance calling, state and international area codes, and a time
zone map of the United States; and ( D ) an instructional
notice directing all Subscribers to contact their local service
provider to request any modifications to their existing listing, or
to request a new listing (A, B, C and D, collectively, the “
Generic Phone Service Pages ”). Spinco, at its sole
cost and expense, shall prepare and provide Publisher with the
information described in this Section 3.3(a)(i), with the
exception of information about any CLEC or LEC with whom Spinco
does not have an interconnection agreement, which must be provided
directly to Publisher by such CLEC or LEC. Publisher and Spinco
shall cooperate to integrate the information described in this
Section 3.3(a)(i) into the appropriate format and design and
to ensure compliance with the Legal Requirements; and
(ii) Premium Phone Service
Pages . To the extent offered by Publisher, and without
limiting the rights and obligations of each of Spinco and Publisher
set
14
forth in
Section 3.2, Spinco, and any CLECs included within the Scoped
Area of a given White Pages, may elect to purchase premium phone
service pages in such White Pages for the purpose of providing
specific product and service information that is factual,
instructional and/or directional in nature (the “ Premium
Phone Service Pages ”) in accordance with
Publisher’s then-prevailing policies and pricing, as such
policies and pricing shall be reasonably established by Publisher
from time to time; provided , however , that
Publisher may not sell any Premium Phone Service Pages to any
provider of Telecommunication Services or Video Services other than
Spinco and any CLECs to which Publisher is required by applicable
Legal Requirements to sell Premium Phone Service Pages; and
provided further , that the prices charged by
Publisher to Spinco for such Premium Phone Service Pages in any
White Pages shall be equal to or less than the lowest prices for
comparable Premium Phone Service Pages then being charged by
Publisher to any Person with respect to such White Pages.
(b) Ordering of Phone
Service Pages . The Generic Phone Service Pages shall appear
before the Premium Phone Service Pages in each White Pages. Each of
the Generic Phone Service Pages and the Premium Phone Service Pages
shall be arranged in alphabetical order, except that ( i )
any LEC having a written publishing agreement with Publisher and
50% or more of the total number of Primary Listings for Subscribers
in the relevant White Pages shall automatically be placed in first
position in such Generic Phone Service Pages and Premium Phone
Service Pages, ( ii ) if such LEC is not Spinco, Spinco
shall appear immediately following such LEC in such Generic Phone
Service Pages and Premium Phone Service Pages and ( iii )
any other LECs shall appear in alphabetical order thereafter in
such Generic Phone Service Pages and Premium Phone Service
Pages.
Section 3.4 Changes To White
Pages; Courtesy Classified Listings .
(a) Publisher shall provide to
Spinco written notice of any Material Change to any Primary
Directory containing White Pages within 30 days after the
decision is made to make any such Material Change, and at least
180 days before any such Material Change is to be implemented.
Publisher shall in good faith consult with Spinco with respect to
any planned Material Change and engage in discussions with Spinco
regarding any concerns Spinco may have regarding such Material
Change. Notwithstanding anything in this Agreement to the contrary,
Spinco may discuss such Material Change with any relevant
Governmental Entity (and, in such event, Publisher shall be given
an opportunity to discuss the proposed Material Change with such
Governmental Entity) and in no event shall any action taken by any
Governmental Entity regarding such Material Change give rise to a
Reimbursable Increase.
(b) Publisher shall provide to
Spinco written notice of any change to its policies or practices
relating to Publishing the result of which would not be
consistent
15
with
industry practice at least 30 days prior to the planned
implementation of such change.
(c) If the provision of Courtesy
Classified Listings is not a Legal Requirement in any Service Area
and Publisher decides to no longer publish Courtesy Classified
Listings at no charge in such Service Area, Publisher will provide
Spinco with written notice of the decision at least 90 days
prior to the commencement of the sales canvass for the impacted
directories in such Service Area, and Spinco, by written notice
delivered not more than 45 days after receipt of notice from
the Publisher, may require Publisher to publish such Courtesy
Classified Listings provided that Spinco reimburses Publisher (so
long as the provision of Courtesy Classified Listings at no charge
is not a Legal Requirement) for the incremental costs of including
such listings in the directories.
(d) Representatives of each of
Publisher and Spinco shall meet on a quarterly basis to discuss
Publisher’s activities relating to its fulfillment of the
Publishing Obligation and any Material Changes or changes to
Publisher’s policies and practices relating to Publishing
then under contemplation by Publisher.
Section 3.5 Editorial
Discretion . Subject to its obligations under this Agreement,
Publisher may establish, discontinue or modify its policies from
time to time with regard to any and all aspects of Publishing;
provided , however , that Publisher shall give Spinco
written notification of any changes in Publisher’s policies
or products that are reasonably likely to impact Spinco’s
obligations under this Agreement at least 180 days prior to
the expected date of implementation of such changes; and
provided further that, for the avoidance of doubt,
Publisher may not alter or fail to comply with the terms of this
Agreement in any material manner whatsoever by modification of its
policies. Publisher’s policies shall be commercially
reasonable. Publisher may not make any commitments on behalf of
Spinco or take any action that would materially impair or affect
Spinco’s ability to discharge its Publishing Obligation, in
each case without the prior written consent of Spinco.
Section 3.6 Delivery and
Distribution .
(a) Initial Delivery .
Publisher shall timely deliver in accordance with the related
Subscriber Delivery Information ( i ) at least one White
Pages and, to the extent Legally Required, at least one Yellow
Pages or ( ii ) at least one combined White Pages and Yellow
Pages to all Subscribers within the Scoped Area covered by the
related Primary Directory(s) at no charge to the Spinco Parties,
their Subscribers, Other Service Providers or the Subscribers of
Other Service Providers. Subject to Section 3.4 and applicable
Legal Requirements, Publisher may select the type or medium of
delivery of such Primary Directories, provided that, in
addition to complying with Section 3.4, Publisher shall make
no change to the type or medium of delivery of any White Pages
unless, in each case, Publisher makes the same change to the type
and medium of delivery of each Yellow Pages distributed by
Publisher in the same Scoped Area.
16
(b) Replacements and New
Customers . Subject to available inventory (which Publisher
shall maintain at reasonable levels consistent with
Publisher’s past practices), subsequent to the initial
distribution of White Pages, Publisher shall timely deliver (
i ) additional and replacement White Pages to
Subscribers within the Scoped Area of such White Pages upon any
reasonable request from a Subscriber within such Scoped Area and (
ii ) White Pages to New Customers within the Scoped Area for
such White Pages, provided Spinco delivers timely New
Customer information for the Service Areas to Publisher in the
format in which such information is currently being delivered or
such other format as may be mutually agreed upon by the Parties.
Publisher shall make the foregoing deliveries at no charge to the
Spinco Parties, their Subscribers, Other Service Providers or the
Subscribers of Other Service Providers.
(c) Distribution Coverage
and Policies . Upon Spinco’s request, Publisher shall
provide to Spinco, at no charge: ( i ) a reasonable number
of copies of Publisher’s distribution policies for each
Service Area describing which White Pages Subscribers in such
Service Area shall receive and other matters relevant to the
distribution of White Pages in such Service Area and ( ii )
a reasonable number of copies of the White Pages coverage
information, including those geographic areas included in and
served by the White Pages and government pages, for each of the
Service Areas. Spinco may make and retain copies of the information
and documents provided pursuant to (i) and (ii) above as
necessary to perform its obligations hereunder.
(d) Free Calling Area .
In the event a Spinco local or extended calling area extends beyond
any Scoped Area, Publisher’s delivery obligation with respect
to any Subscriber that resides in the portion of such free calling
area not within the relevant Scoped Area shall include only such
additional White Pages as may be requested by such Subscriber and
required to be provided to such Subscriber by any Legal
Requirement, which Publisher shall provide at no charge to the
Spinco Parties, their Subscribers, Other Service Providers or the
Subscribers of Other Service Providers.
Section 3.7 Rights in the
Directory Products . The copyrights and other intellectual
property rights in each Directory Product covered by this
Agreement, and any and all illustrations, artwork, photographs,
video, audio, text, maps and other adverti
|