Exhibit 4.64
TRANSITIONAL SERVICES AGREEMENT
This Agreement is made this 14th day of February, 2003 (the "Effective Date"),
between CanWest Publications Inc., a company governed by the laws of Canada
("CPI"), and Osprey Media Holdings Inc. ("Osprey"), a company governed by the
laws of Ontario, on its own behalf and for and on behalf of each of the
corporations listed in Schedule A (each, a "Company" and, collectively, the
"Companies") as follows:
1. IT SERVICES
CPI shall provide to each Company the information technology services in
Schedule B (the "IT Services"). Schedule B provides a description of each of the
IT Services, the maximum term of such services and the implications upon the
expiry of the maximum term of such services.
2. PAYROLL SERVICES
For a period of no longer than six months following the Effective Date, CPI
shall pay the payroll for Southern Ontario Community Newspaper Group Inc. and
Niagara Newspaper Group Inc. ("Payroll Services"). Osprey will provide CPI with
the payroll funds via wire transfer, including an administrative fee of $500,
two days prior to the required disbursal date.
2. DELIVERY OF THE IT SERVICES
Osprey shall ensure that each of the Companies maintains the appropriate systems
to enable it to receive the IT Services.
3. FEES FOR IT SERVICES
The fees for each of the IT Services are listed in Schedule C. Where there is no
fee listed, the relevant Companies will be charged only for consulting and
support services, as requested by such Companies, at CPI's then current hourly
rates (which range from $55 to $75 per hour as at the date of this Agreement).
4. PAYMENT TERMS FOR THE IT SERVICES
In respect of the IT Services, CPI will invoice Osprey on a monthly basis for
the fees incurred during that month by each of the Companies and Osprey shall
pay CPI within 15 days of the date of such invoice.
5. NO WARRANTY
The IT Services and Payroll Services are provided on an "as is" basis and CPI
makes no representation, warranty, covenant or condition with respect to the IT
Services and Payroll Services.
6. CONFIDENTIALITY
During the term of the provision of the IT Services and Payroll Services, each
party shall treat and hold as confidential any information concerning any other
party or its business that is not generally available to the public (the
"Confidential Information"), and shall refrain from using
any of the Confidential Information except in connection with this Agreement. In
the event that a party is requested or required (by oral question or request for
information or documents in any legal proceeding, interrogatory, subpoena, civil
investigative demand, or similar process) to disclose any Confidential
Information, that party shall notify the other relevant parties promptly of the
request or requirement so such other parties may seek an appropriate protective
order.
7. LIMITATION OF LIABILITY
No party shall have any liability to any other party arising out of, in
connection with, or related to the provision of the IT Services and Payroll
Services, except in respect of gross negligence, the payment of fees hereunder
or any of the confidentiality obligations set forth in section 6 hereunder, and
in no event shall any party be liable to any other party for any indirect,
special, punitive, incidental or consequential damages whatsoever (including,
without limitation, damages for loss of business profits, business interruption
or any other pecuniary loss).
8. TERMINATION
Notwithstanding the term of each service as provided for in Schedule B: (a) CPI
may terminate the provision of any IT Service upon not less than 60 days' prior
written notice to Osprey in the event that it determines to discontinue
providing the IT Service to all of its own or its affiliates' publications; and
(b) Osprey may terminate the provision of any IT Service upon 60 days' written
notice to CPI.
9. ASSIGNMENT
(a) Except with the written consent of the other party or as provided in
this section, this Agreement may not be assigned by either party.
(b) This Agreement may be assigned by a party to an affiliate of such
party, provided the assignor shall remain liable for all obligations of
the assignee.
(c) This Agreement may be assigned by CPI to any successor to the business
of CPI Information Technology Group upon notice to Osprey.
10. RELATIONSHIP OF PARTIES
Nothing in this Agreement shall be construed as creating an employer-employee
relationship, a partnership, agency, franchise or a joint venture between the
parties and neither party shall have the right, power or authority to obligate
or bind the other party in any manner whatsoever without such party's prior
written consent.
11. SUCCESSORS AND ASSIGNS
This Agreement shall enure to the benefit of and be binding upon the parties and
their respective successors (including any successor by reason of amalgamation
of any party) and permitted assigns.
SIGNATURE PAGE FOLLOWS
IN WITNESS WHEREOF the parties have executed this Transitional Services
Agreement as of the Effective Date.
CANWEST PUBLICATIONS INC.
By: /S/ XXXXXXX X. XXXXXXX
-------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Director
By: /S/ XXXXXX X. XXXXXX
-------------------------
Name: Xxxxxx X. Xxxxxx
Title: Director
OSPREY MEDIA HOLDINGS INC.
(on its own behalf and on
behalf of each of the
Companies)
By: /S/ XXXXXXX X. XXXXXX
-------------------------
Name: Xxxxxxx X. Xxxxxx
Title: President and
Chief Executive Officer
SCHEDULE A
COMPANIES
Brantford Expositor Group Inc.
Flamborough Review Newspaper Inc.
Xxxxxxxx Printing Group Inc.
Niagara Newspaper Group Inc.
Peninsula Newspaper Group Inc.
Southern Ontario Community Newspaper Group Inc.
St. Catharines Standard Group Inc.
CanWest St. Catharines R.P. Holdings Inc.
SCHEDULE B
IT SERVICES
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SERVICE DESCRIPTION OF SERVICE* MAXIMUM TERM UPON EXPIRY
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Advertising Provide access to software application 9 months Company may license the software for own
which enables booking and billing of site for 18 months for no fee, after
advertising which parties shall negotiate fair market
rate fee
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Ad Hosting Provide access to server upon which 12 months Service expires
national print ads are distributed
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Accounts Provide access to software application to 6 months Service expires
Payable administer accounts payable
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Circulation Provide access to software application 9 months Company may license the software for own
which controls print and distribution runs site for earlier of 18 months or until
CPI ceases to use software (anticipate
end of 2004), after which Company may
acquire perpetual limited license for the
software at negotiated fair market rate
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Cybergraphics Provide support for software application 6 months Service expires
(Service only which paginates classified advertisements
provided to
St. Catharines)
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General Provide access to software application to 7 months Service expires
Ledger administer general ledger
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Internal Maintain internal e-mail system 6 months Service expires
E-mail
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Internet Provide Internet access and external e-mail 6 months Service expires
Connectivity service
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Payroll Software Provide access to software application to 7 months Company may license the software for own
administer payroll for all the Companies site for earlier of 18 months or until
CPI ceases to use software (anticipate
end of 2003), after which Company may
acquire perpetual limited license for the
software at negotiated fair market rate
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News and Photo Provide access to electronic desktop 12 months Service expires
Delivery photo and text delivery system
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WAN Telephone Maintain WAN telephone lines 12 months Service expires
Lines
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Consulting and Provide supports for each service and 12 months Service expires
Support Services consultation when migrating off service to
new third party service (hourly fee)
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* The services provided do not include the acquisition, upgrading and
maintenance of on-site hardware and software required by the Company to use the
services.
SCHEDULE C
FEES
MONTHLY CHARGES
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Consulting Fees Cybergraphics
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Newspaper Advertising Circulation Payroll/GL Classified Networks S. Bureau DBA Production
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ONTARIO
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Brabant Newspapers 13.75 615.63
Brantford Expositor 60.00 302.97 25.00 136.24 9.17 3.13 - 88.23
Dunnville Chronicle 4.58 1.15 25.21
Fairway Group 184.79 2.29
Xxxxxxxx Web - N/A
Niagara Falls Review 37.83 128.08 46.91 11.46 9.17
Xxxxxx Group 73.33 4.58 9.17
SOCN
St. Catherines Standard 63.75 447.89 179.92 340.52 61.88 6.88 3.44 104.58 1,254.94
Welland Tribune 12.60 41.21 24.29 20.00 2.29
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TOTAL 436.89 921.30 209.50 573.18 118.54 10.00 12.60 819.90 1,254.94
MONTHLY CHARGES
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Service Bureau Fees
Newspaper Compaq Icanon WAN Advertising Circulation Payroll Equipment Travel Quickware TOTAL
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ONTARIO
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Brabant Newspapers 125.95 755.33
Brantford Expositor 168.02 1,493.13 725.00 1,450.00 241.67 3.27 124.83 4,830.66
Dunnville Chronicle 80.00 160.00 26.67 297.60
Fairway Group 213.94 537.18 80.00 160.00 26.67 1,204.87
Xxxxxxxx Web - N/A
Niagara Falls Review 117.33 80.00 160.00 26.67 83.33 700.79
Xxxxxx Group 87.08
SOCN 3.31 375.00 750.00 125.00 1,253.31
St. Catherines Standard 511.25 1,905.83 500.00 1,000.00 166.67 369.92 22.75 541.33 7,481.54
Welland Tribune 93.33 173.33 83.33 450.40
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-
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TOTAL 893.21 - 4,056.79 1,933.33 3,853.33 613.33 369.92 151.97 832.83 17,061.58
-ii-
YEARLY CHARGES
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Newspaper Consulting Fees Cybergraphics
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Advertising Circulation Payroll/GL Classified Networks S. Bureau DBA Production
------------------------------------------------------------------------------------------------------------------------------------
ONTARIO
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Brabant Newspapers 165 7387.5
Brantford Expositor 719.98 3,635.63 300.00 1,634.90 110.00 37.50 - 1,058.76
Dunnville Chronicle 55.00 13.75 302.50
Fairway Group 2,217.50 27.50
Xxxxxxxx Web - N/A
Niagara Falls Review 454.00 1,537.00 562.96 137.50 110.00
Xxxxxx Group 880.00 55.00 110.00
SOCN
St. Catherines Standard 765.00 5,374.71 2,159.00 4,086.26 742.50 82.50 41.25 1,255.00 15,059.29
Welland Tribune 151.25 495.00 291.50 240.00 27.50
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TOTAL 5,242.73 11,056.09 2,514.00 6,878.12 1,422.50 120.00 151.25 9,838.76 15,059.29
YEARLY CHARGES
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Service Bureau Fees
Newspaper Compaq Icanon WAN Advertising Circulation Payroll Equipment Travel Quickware TOTAL
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ONTARIO
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Brabant Newspapers 1511.43 9,063.93
Brantford Expositor 2,016.24 17,917.60 8,700.00 17,400.00 2,900.00 39.25 1,498.00 57,967.86
Dunnville Chronicle 960.00 1,920.00 320.00 3,571.25
Fairway Group 2,567.28 6,446.20 960.00 1,920.00 320.00 14,458.48
Xxxxxxxx Web - N/A
Niagara Falls Review 1,408.00 960.00 1,920.00 320.00 1,000.00 8,409.46
Xxxxxx Group 1,045.00
SOCN 39.66 4,500.00 9,000.00 1,500.00 15,039.66
St. Catherines Standard 6,135.00 22,870.00 6,000.00 12,000.00 2,000.00 4,439.00 273.00 6,496.00 89,778.51
Welland Tribune 1,120.00 2,080.00 1,000.00 5,405.25
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-
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TOTAL 10,718.52 - 48,681.46 23,200.00 46,240.00 7,360.00 4,439.00 1,823.68 9,994.00 204,739.40