Document:

Addendum 7 to Master Services Agmt. between Exult and B of A Corp.

 Exhibit 10.19.11 
  
 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED PROVISIONS OF THIS AGREEMENT. THE REDACTED PROVISIONS ARE IDENTIFIED BY THREE
ASTERISKS ENCLOSED BY BRACKETS AND UNDERLINED. THE CONFIDENTIAL PORTION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  

  
 Addendum 7 To Master Services
Agreement 
  
 Exult, Inc. (“Service Provider”) and
Bank of America Corporation (“Customer”) are parties to that certain Master Services Agreement dated as of November 21, 2000 (the “Agreement”). This Addendum 7 to the Agreement (“Addendum 7”) is entered into by Service
Provider and Customer as of April 25, 2003 (“Addendum 7 Effective Date”). 
  

	 	1.	 	Scope.    The Agreement is hereby amended by this Addendum 7 to (i) amend Schedule A to provide Customer with a license to use the performance management
software and documentation as described in the Addendum to Schedule A attached to this Addendum 7 (“PM Software”); (ii) further amend Schedule A to describe the support and maintenance services to be provided by Service Provider for the PM
Software; and (iii) amend Schedule C to set forth Service Provider’s fees for implementing the PM Software and the mechanism for adjusting the Baseline Charges to cover Service Provider’s support and maintenance for the PM Software during
the Term. 

  
 For and in consideration of the
agreements set forth herein, Service Provider and Customer hereby enter into this Addendum 7 as of the Addendum 7 Effective Date. 
  
  

	Bank of America Corporation
	 By:
                                        
                                        
               

	 Name: Betty W. Luther

	 Title:   Sr. VP Supply Chain Management

	Exult, Inc.
	 By:
                                        
                                        
               

	 Name:

	 Title:

  

  

	 Addendum 7
	 	1	 	Bank of America / Exult

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 SCHEDULE A 
  
 Description of Services 
  

	Section 1:	 	Schedule A to the Agreement is hereby amended by the addition of a new Section 5 thereto as follows: 

  
 5 Performance Management Software 
  
 5.1 General 
  
 Service Provider will implement the [***]* Performance Management Software (“PM Software”) described below into Customer’s computer
network and shall provide ongoing support and maintenance of such software. The materials included with the PM Software provided hereunder are the current version of the software and documentation described below: 
  
 Software 
  
 “PM Core” – providing the following functionality:

  
 [***]* 
  
 5.2 License 
  
 Subject to the terms of this Addendum 7 and the Agreement, Service Provider
grants to Customer a [***]* license to install, use, and execute the PM Software and materials set forth in Section 4.1.12 of addendum to Schedule C below, solely for Customer’s internal business purposes and to make a reasonable number
of copies of the PM Software materials to support such use. This grant extends only to Customer; provided, however, permission is granted for employees of Customer Affiliates to use the PM Software if such employees are included in the number of
licensed users. Customer may not use the PM Software and/or materials to perform any services for another entity. Customer acknowledges that the PM Software and documentation are developed and owned by [***]* and that Service Provider is only
a reseller of the PM Software. Accordingly, Customer acknowledges and agrees that [***]* shall retain all title and ownership interest in the PM Software and related documentation, including the functionality described in Section 5.1 above,
and all intellectual property rights relating thereto. The PM Software and all documentation relating thereto are the confidential information belonging to [***]*. The license granted above is the only license granted hereunder and no other
license or rights are implied. Service Provider shall obtain such appropriate authorizations as are necessary to support and maintain the Software as contemplated herein. 
  
 In addition, Customer may (i) install, use, execute and copy the PM Software for any backup, archival and emergency purposes
and any internal, non-production Bank of 
  

  

	 Schedule A to Addendum 7
	 	2	 	Bank of America / Exult

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 America purpose including for test, development, and training; (ii) in the event that the Agreement
is terminated, allow a third party outsourcer or service provider to install, use, execute and copy the PM Software solely in connection with its provision of services to Bank of America, provided that (A) such use does not extend to providing
services to others and (B) such third party outsourcer agrees in writing to all the restrictions set forth herein on Customer and any license restrictions applicable to Exult; and (iii) transfer the PM Software to any other platform or installation
site replacing that on which it was previously installed, whether or not in existence as of the Addendum 7 Effective Date; provided, that the PM Software is certified to operate on such systems or platforms. 
  
 Customer may, for a reasonable period of time (not to exceed [***]*)
after the sale of an Affiliate of Bank of America or a division of Bank of America, use the PM Software to provide to such divested entity, processing services and/or similar activities which are or become incidental to Bank of America’s
business, at no additional charge or fee. All restrictions set forth in this Agreement on Bank of America’s use of the PM Software shall be deemed also to apply to any divested entity’s use of the PM Software; in addition, (a) in no event
shall any divested entity be provided a copy of the PM Software and (b) all versions of executable code for the PM Software shall reside at Customer’s or Exult’s computer network. 
  
 The licenses granted herein are subject to the following additional
restrictions: (a) Customer shall not modify, translate, reverse engineer, reverse compile or disassemble any part of the PM Software without the prior written consent of [***]*; and (b) Customer shall not remove, obscure or deface any
proprietary legend relating to the PM Software and shall include in each copy all proprietary notices contained in the PM Software 
  
 5.3 Ownership of Deliverables. As part of the Services provided hereunder, Service Provider shall develop an interface (“Interface”) to
allow the Software to run on Customer’s existing computer network. Such Interface, and all intellectual property contained therein, shall be Customer’s sole and exclusive property, subject to such licenses as may have been granted by
Customer to Service Provider pursuant to the Agreement to allow Service Provider to perform the Services. Service Provider agrees to include in its license agreement with [***]* the same obligation for [***]* to indemnify Customer for
infringement claims relating to the use of the PM Software that [***]* has to indemnify Service Provider for such claims. Service Provider shall also use its reasonable best efforts to assist Customer in enforcing such obligation by
[***]* Service Provider’s obligation in the immediately preceding sentence shall not be limited by any limitations set forth in the Agreement, but shall instead be limited by any contractual limitations between [***]* and Service
Provider. 
  
 5.4 Additional Provisions 
  
 The license granted under this Addendum 7 is subject to all other terms and
conditions of the Agreement relating to Customer Third Party Software, including but not limited to Sections 12 (Software and Proprietary Rights), 13 (Mutual Representations and Warranties; Disclaimers), 16 (Confidentiality and Security), 19
(Indemnities), and 20 (Damages). Any New Intellectual Property relating to functionality other than as 
  

  

	 Schedule A to Addendum 7
	 	3	 	 

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 described in Section 4.1, would require a subsequent Addendum or Change Order. In addition, it is
expressly understood that any intellectual property created by Customer in connection with the PM Software shall be the sole property of Customer. 
  

	Section 2:	 	Schedule A is further amended by adding new Sections 2.2.6, 2.2.7 and 2.2.8 relating to support and maintenance for the PM Software during the Term: 

  
 2.2.6 PM Software Maintenance and Support 
  
 Subject to Customer’s continued payment of maintenance fees pursuant to
Section 4.1.13 of Schedule C and Customer’s compliance with its other obligations hereunder, Service Provider will provide support and maintenance for the PM Software and materials for the remainder of the Term as follows: 
  
 2.2.6.1. As used in this Section 2.2.6, the following terms
shall have the meanings set forth below: 
  
 2.2.6.1.1 “Error” shall mean a material failure of the PM Software to conform to, and perform to, its functional and performance specifications as described in the applicable PM Software documentation, or perform in a
repeatable manner reflecting the documented results of successful testing programs. Failures resulting from negligence or improper use, modification of or damage to the PM Software, or Customer’s use of the Software on any platform that is not
a Supported Platform, or in combination with any third party software not provided by Service Provider, or identified and tested as compatible with [***]* products, will not be considered an Error. 
  
 2.2.6.1.2 “ Severity Level Errors” shall
mean an Error in the PM Software that exhibits one or more of the following characteristics: 
  
 “Severity Level 1” errors are those events or conditions that will cause a widespread failure or inability among
Customer’s end-users, to access or be able to utilize the PM Software, or that materially impacts the business processes and limits the functionality provided by the PM Software, such that the PM Software is available less than [***]* of
the time, except in periods of planned maintenance (“Performance Standard”). 
  
 “Severity Level 2” errors are those events or conditions that will cause an impact to meeting the Performance Standard.

  
 “Severity Level 3” errors
that do not impact the Performance Standard, but which impact the execution of a normal business process or application supported by Service Provider. 
  
 2.2.6.1.3 “New Release” means an updated executable-code version of the PM Software. 
  

  

	 Schedule A to Addendum 7
	 	4	 	 

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 2.2.6.1.4 “Tier 1 Support” entails initial call-logging and
preliminary assessment of all software and hardware inquiries/issues, immediate resolution for those inquiries/issues where scripted response can be and has been developed, and case forwarding to Tier 2 or Tier 3 Technical Support for those
inquiries/issues where scripted response cannot or has not been developed. Exult will provide Tier 1 Technical Support through its Personnel Associate Help Desk, or PAHD. 
  
 2.2.6.1.5 “Tier 2 Support” entails detailed problem determination and analysis for
software and hardware inquiries/issues that have been escalated from Tier 1, resolution of those inquiries/issues where Exult has access to the tools and information required for resolution, case forwarding to Tier 3 Technical Support for those
inquiries/issues where Exult does not have access to the tools and information required for resolution, management of service requests escalated to Tier 3, and responsibility for communicating resolution of those inquiries/issues resolved by Tier 3
Technical Support. Exult will provide Tier 2 Technical Support through its Operations IT Production Support organization. 
  
 2.2.6.1.6 “Tier 3 Support” entails research and resolution of all software inquiries/issues that cannot be resolved in
Tiers 1 or 2. Exult will provide Tier 3 support either directly or through an outside contractor. 
  
 2.2.6.1.7 “Supported Platform” means the following: [***]* and any mutually agreed successor infrastructure
software identified as compatible by the parties and demonstrated by a suitable testing program. 
  
 2.2.6.2 Services. Provided that after reasonable efforts, Exult’s Tier 1 Support team and Tier 2 Support team have been unable to
provide a resolution to a Severity Level Error the following corrective actions shall be undertaken: 
  
 2.2.6.2.1 For Severity Level 1 Errors, Exult will: 
  

	 	a)	 	Initiate actions within [***]* by making its response team aware of the issue, 

	 	b)	 	Escalate the issue and known facts to its expert engineering team for actions within [***]*, 

	 	c)	 	Provide regular progress updates to Customer’s technical lead every [***]*, 

	 	d)	 	Restore service to standard levels through temporary corrective actions, or patch, and with a permanent fix such that service standards can be sustained on an

  

  

	 Schedule A to Addendum 7
	 	5	 	 

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

	 	 
expedited and extended work effort including [***]* levels of effort when information is available to support the efforts.

 2.2.6.2.2 For Severity Level 2 Errors, Exult will: 

	 	a)	 	Initiate actions within [***]* by making its response team aware of the issue, 

	 	b)	 	Escalate the issue and known facts to an expert engineering team for action within [***]* of the Initiation of Response, 

	 	c)	 	Provide regular progress updates to Customer’s technical lead every [***]*, 

	 	d)	 	Restore service to standard levels through temporary corrective actions, or patches, and with a permanent fix such that service standards are restored on an expedited work effort
including [***]* levels of effort when information is available to support the corrective actions. 

 2.2.6.2.3 For Severity Level 3 Errors, Exult will restore service to standard levels through temporary corrective actions, patches, and with a permanent fix such that service standards are restored on a sustainable basis within
[***]* of issue notification. 

	

 Customer agrees to work with Exult to verify and reproduce all such Severity Level Errors.

  
 2.2.6.3 Corrections. Customer will
provide reasonable assistance to Exult in verifying, reproducing and correcting Severity Level Errors. Correction is conditioned upon verification and reproduction of the Severity Level Error. Error correction may include a temporary work-around,
patch or bypass supplied by Exult, or temporary implementation of an operational procedure, in order to diminish or avoid the effect of the Error. 

	

 2.2.6.4 Limitations. 
  
 2.2.6.4.1 Exult’s maintenance and support service
provided hereunder does not cover or include: (a) installation of PM Software, or New Releases; (b) training; (c) services required as a result of accident, transportation, relocation, power failure or failure of Customer’s equipment, or causes
other than ordinary use; or (d) any and all customization services or modifications that were made to the PM Software other than by Exult or made in compliance with Exult’s direction (i.e., installation of licensed patches or updates from
[***]*). 
  
 Exult will not be required to provide
maintenance and support services to Customer including, without limitation, correction of 
  

  

	 Schedule A to Addendum 7
	 	6	 	 

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 
any Severity Level Error (a) with regard to any version of the PM Software other than [***]* then latest release of such PM Software, at any time
after [***]* following the successful installation of such latest release; provided, should a service disruption occur, or testing fail, as a result of a defect or error in newly released version of the PM Software, then Exult will continue
to support the previously released version of the PM Software for a period of time not to exceed [***]* following the successful installation of the then-current software version, (b) Customer is in breach of the license granted hereunder,
(c) with respect to any Severity Level Error caused by Customer’s unauthorized or improper use of the PM Software or any use which is not in accordance with the terms of the Addendum, (d) with respect to any Severity Level Error caused by
Customer’s use of the PM Software with unauthorized hardware or other software unless such use has otherwise been approved by mutual agreement, in writing, (e) Customer’s unauthorized incorporation or attachment of a feature, program, or
device to the PM Software, or any part thereof, (f) if Customer refuses to incorporate any Severity Level Error correction provided by Exult to correct a Severity Level Error, (g) with respect to any Severity Level Error, nonconformance or damage
caused by any abuse, misuse, neglect, power surges, accident, negligence (other than by Exult), transportation, vandalism, theft, earthquake, fire, flood, water, force of nature or acts of God, war or civil unrest, governmental action, or
third-party act, error or omission or any alteration, modification or enhancement of the PM Software not authorized or performed by Exult. Exult will not be required to correct Severity Level Errors caused by (a) the use of the PM Software on any
systems other than the Supported Platforms, or (b) use of defective media (other than media provided by Exult) or defective duplication (not performed by Exult) of the PM Software. 
  
 2.2.6.5 Designated Support Contacts. Exult and Customer will each designate three (3) persons on
their technical staff who will be authorized to contact and conduct actions with respect to obligations hereunder. Each party will provide the other with the names, business telephone, mobile telephone, and pager numbers of such authorized persons
and their alternates or successors. 
  
 2.2.6.6
New Releases. [***]* may deliver New Releases to Exult from time to time. Customer agrees to cooperate and assist Exult with installing all such New Releases within [***]*, which period shall be extended for any period where the
Customer prohibits or precludes installation of a New Release. All New Releases will be deemed part of the PM Software. 
  

  

	 Schedule A to Addendum 7
	 	7	 	 

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 2.2.6.7 Reinstatement. Reinstatement of lapsed maintenance and support by
Customer is subject to full payment of all applicable fees that would have been payable during the period of lapse. 
  
 2.2.7 Source Code Escrow. Service Provider shall cause [***]* to escrow with [***]* via a three-party escrow agreement the
following items, collectively, the “Source Code Escrow” within [***]* of the release date of the PM Software: 
  

	 	·	 	Source code, in human readable form, on magnetic media in the original programming code language for (1) the PM Software, and (2) any subsequent enhancements to, or releases of, the
PM Software; 

  

	 	·	 	Source code print-out (paper, microfilm or CD-ROM); 

  

	 	·	 	Descriptions of the system/program generation; 

  

	 	·	 	Necessary, non-licensor, proprietary software to the extent that [***]* possesses license or other right sufficient to allow transfer or sublicense; 

 

	 	·	 	Description of the system/programs required for use and/or support for which [***]* neither possesses, nor has rights sufficient to allow transfer or sublicense;

  

	 	·	 	Menu and support programs and subroutine libraries in source and object form; and 

  

	 	·	 	Detailed explanation of compilation and execution procedures in human and machine-readable form (may be supplemented with video explanation). 

  
 The Source Code Escrow shall remain in escrow for the term of this Agreement.
Service Provider shall provide Customer with the right to obtain source code for the PM Software pursuant to the Source Code Escrow Agreement in the event of neither Supplier nor Exult can satisfy its obligation to provide its maintenance and
support Services with respect to the PM Software hereunder (collectively, a “Release Condition”). 
  
 Upon occurrence of a Release Condition, notwithstanding Section 5.2, Customer shall be deemed to have, automatically, a [***]* license to use,
modify, copy, produce derivative works from, display, disclose to persons who have entered into a written agreement containing substantially the same confidentiality provisions as in this Addendum 7 for the purpose of maintaining the PM Software for
the Customer, and otherwise to utilize the PM Software and the source code and other materials necessary to maintain and improve the PM Software for use by Customer, subject always to the limitations in this Agreement on reproduction and use of the
PM Software for production purposes. 
  
 2.2.8
Changes 
  
 Any additional changes to the scope of maintenance
will be handled using Change Control Procedures under the Agreement and shall be documented in a Change Order. 
  

 

	 Schedule A to Addendum 7
	 	8	 	 

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 2.2.9 Assumptions 
  
 2.2.9.1 Service Provider will develop and implement any interfaces necessary to allow the PM Software to be
installed in Customer’s computer network environment in accordance with Section 5.3. 
  
 2.2.9.2 Customer shall be responsible for, and shall pay for any necessary upgrades to Customer’s computer network necessary to
accommodate the PM Software. 
  
 2.2.9.3 Customer
will assume responsibility for support and maintenance of the PM Software after the Term (as defined in the Agreement). 
  

  

	 Schedule A to Addendum 7
	 	9	 	 

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 SCHEDULE C 
  
 Fees and Charges 
  
 Schedule C to the Agreement is hereby amended by the addition of new Sections 4.1.11, 4.1.12 and 4.1.13 thereto as follows: 
  
 4.1.11 Implementation Fees. Customer agrees to pay the
following Vendor Fees and Exult Personnel Costs (collectively, “Implementation Fees”) to Service Provider for implementing the PM Software as follows: 
  

[***]* 
  
 Service Provider shall invoice Customer for [***]* of the total Vendor Fees upon execution of this Addendum 7 and shall invoice Customer for any remaining Vendor
Fees in accordance with the normal invoicing cycle pursuant to the Agreement. 
  
 Exult Personnel Costs. Following sets forth the estimated Exult personnel hours required to implement the PM Software: 
  
 [***]* 
  
 All Exult Personnel Costs shall be deemed to be FTE hours spent on In-Flight Projects pursuant to Section 4.1.4.1 of Schedule C to the Agreement. In addition, Customer shall reimburse all travel and related expenses
incurred by Service Provider, [***]* and any consultant personnel hired by Service Provider. 
  
 The amount of Vendor Fees and of Exult Personnel Costs set forth above represent good faith estimates. If Vendor Fees (including from additional vendors
not currently specified) or the amount of hours required by Exult to implement the changes described herein exceed the estimated hours, Customer shall also pay (or credit, as the case may be) Exult for such additional Vendor Fees and excess hours at
the applicable rates; provided, however, Customer must first approve in writing any increase in the amount of Vendor Fees to be charged to Customer. 
  
 4.1.12 License Fees. Customer agrees to pay Service Provider the following license fees (“License Fee”) for the PM Software:

 [***]* 
  
 Service Provider shall deliver the PM Software by electronic transmission directly to Customer. The total License Fee of [***]* shall be invoiced by Service
Provider to Customer as follows and shall be due and payable within [***]* of the invoice date, except that the payment to be invoiced upon software delivery shall be due and payable within [***]* of the invoice date: 
  

  

	 	 	10	 	Bank of America / Exult

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 [***]* 
  
 4.1.13 PM Software Maintenance. Customer shall pay the following annual Vendor Costs and incremental Baseline
Charges in connection with on-going maintenance and user support of the PM Software: 
  
 Vendor Costs. The following sets forth annual third party Vendor Costs in connection with on-going maintenance of the PM Software: 
  
 [***]* 
  
 Such Vendor Costs shall be invoiced by Service Provider to Customer as follows and shall be due and payable within [***]* of the invoice date,
except that the payment to be invoiced upon software delivery shall be due and payable within [***]* of the invoice date. 
  
 [***]* 
  
 The annual Vendor Costs for on-going maintenance of the PM Software shall remain fixed for the [***]*; thereafter, such prices are subject to an
annual increase equal to [***]* 
  
 Increase to IT
baseline. Service Provider and Customer acknowledge and agree that the current monthly “Total IT” charge set forth in Table 4.1.1.1 of Schedule C of the Agreement (as amended to date) shall be increased by [***]* effective
upon implementation of the PM Software into Customer’s production environment. Such amount represents an additional [***]* required to support and maintain the PM Software; provided, the parties may mutually agree to adjust the number of
FTEs required (with a corresponding adjustment to the Total IT charge) if such agreement is reached by [***]*. Notwithstanding the foregoing, after the initial [***]* following implementation, Service Provider and Customer shall
discuss and mutually determine, in good faith, the actual number of incremental FTE required to maintain and support the PM Software. Upon such determination, the parties shall adjust the “Total IT” charge amount accordingly for future
periods, including, if necessary, any one-time adjustment required to true-up the incremental charge for the [***]* following implementation.  
  
 4.1.14 Additional Licensed Users. Customer may, at its sole discretion, but on or prior to [***]*, elect to increase the number licensed users of
the PM Software by paying the following additional License Fees and additional associated Vendor Costs for maintenance: 
  
 License Fee        Annual Maintenance 
  
 [***]* 
  

  

	 Schedule A to Addendum 7
	 	11	 	 

	 Proprietary and Confidential
	 	Bank of America / Exult

  

  

 In addition, Customer and Service Provider shall enter into a change order at the time of any such
increase, which change order shall include any adjustments to the “Total IT” charge required as a result of increased maintenance obligations by Service Provider. 
  

  

	 Schedule A to Addendum 7
	 	12Employment Agmt., 06/02/2003, between Exult and John A. Adams

 Exhibit 10.31.1 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”) is made as of June 2, 2003 by and between Exult, Inc. (the “Company”), and John
A. Adams (“Executive”). 
  
 The Company desires
to employ Executive, and Executive desires to be employed by the Company, on the terms set forth herein. Therefore, the Company and Executive hereby agree as follows: 
  
 1. Duties and Responsibilities. 
  
 (a) Title and Reporting. Executive shall serve as the Company’s Corporate Executive Vice President and Chief
Financial Officer and shall report to and perform the duties and responsibilities assigned to Executive by the Company’s Chief Executive Officer (the “CEO”), which duties and responsibilities shall be consistent with
Executive’s position and titles. 
  
 (b) Duties.
Executive’s duties as Corporate Executive Vice President and Chief Financial Officer will include serving on the Company’s executive management committee and management of and responsibility for the Company’s finances, accounting and
reporting, treasury, taxes, investor relations, and real estate facilities, and review, structuring and execution of the financial aspects of the Company’s mergers & acquisitions activity. The CEO, or such other person as may be designated
by the CEO, may also assign other duties and responsibilities to Executive that are reasonably related to the foregoing. 
  
 (c) Location. Executive shall be based at the Company’s office located at the Corporate Headquarters at Irvine, California, but Executive
shall be required to travel to other geographic locations as is reasonable and appropriate in connection with the performance of his executive duties. 
  
 2. Cash Compensation. 
  
 (a) Base Salary. Executive’s initial base salary shall be $425,000 per year payable in accordance with the Company’s standard payroll
policies. Executive’s base salary shall be subject to annual review by the Company, and may be increased or decreased in the Company’s discretion, provided that the Company will not decrease Executive’s base salary more than once in
any 365-day period. Decrease of Executive’s base salary as provided in the preceding sentence will not constitute a breach by the Company of this Agreement, but may trigger certain rights of Executive pursuant to a separate written severance
arrangement with the Company. 
  
 (b) Incentive
Compensation. Executive will be eligible to participate in incentive compensation programs established by the Company from time to time for its executive officers. The terms of any such incentive compensation program and Executive’s
participation therein will be subject to the discretion of the Company’s Board of Directors. Any bonus is intended to reward contribution to the Company’s performance over an entire fiscal year, and (unless other commitments are made in
writing to Executive) consequently will be paid only if Executive is employed and in good standing at the time of incentive compensation 

 
payments, which generally occurs within 45 days after the close of the Company’s fiscal year. Incentive compensation determinations will be made in the
Company’s sole discretion. Executive’s basic annual incentive compensation target is 50% of base salary, but no particular level of incentive compensation is guaranteed. It is understood that no cash incentive payment is anticipated to be
paid to executive officers of the Company, including Executive, for 2003. 
  
 (c) Withholding. The Company may deduct and withhold any and all applicable federal, state and local income and employment withholding taxes and any other amounts required to be deducted or withheld by the
Company under applicable statutes, regulations, ordinances or orders from the compensation payable to Executive in connection with Executive’s employment. 
  

3. Equity Compensation. 
  
 (a) Stock Options. Upon commencement of Executive’s employment, Exult will issue to Executive (i) options to purchase 750,000 shares of Exult
common stock (the “Original Options”), and (ii) options to purchase an additional 70,883 shares of Exult common stock (the “Additional Options”). Executive will be eligible to participate in future stock option
grant programs, but no further stock option grants are guaranteed. 
  
 (b) Basic Option Terms. The Original Options and the Additional Options will have an exercise price equal to the fair market value of Exult’s common stock on the date of grant, as determined according to Exult’s 2000 Equity
Incentive Plan. The Original Options will vest and become exercisable, subject to continued employment, with respect to 25% of the underlying shares on the first anniversary of the date of grant and with respect to the remaining 75% of the
underlying shares in 36 equal monthly installments thereafter. The Additional Options will vest in the same manner as the Original Options, except that vesting will accelerate, and the Additional Options will become exercisable (i) with respect to
40% of the unvested underlying shares as of December 31, 2003 if the Company’s 2003 revenue is equal to or in excess of the revenue reflected in the Company’s 2003 Budget as originally approved by the Company’s board of directors; and
(ii) with respect to 60% of the unvested underlying shares as of December 31, 2003 if the Company’s 2003 net income is equal to or in excess of the net income reflected in the Company’s 2003 Budget as originally approved by the
Company’s board of directors. In case of partial acceleration, the remaining unaccelerated shares will be subject to vesting in equal installments over 36 months as described above. For purposes of these acceleration provisions, the 2003 Budget
as originally approved by the Company’s board of directors for the 2003 year will only be modified to take into account any direct and incremental expenses incurred as a result of an acquisition of a business that occurs during the 2003 year
and results of operations of the acquired business; that modified Budget will govern for purposes of any acceleration determination. All stock options granted to Executive are subject to Exult’s applicable stock option plan and any terms or
conditions imposed by Exult in connection with the options. 
  
 (c) Restricted Stock. Upon commencement of Executive’s employment, Exult will issue to Executive 150,000 shares of the Exult common stock, subject to restrictions on transfer pending vesting. Terms and conditions of the
restricted stock are set forth in a separate Restricted Stock Agreement of even date herewith. Executive will be eligible to 

  

 2 

 
participate in future restricted stock grant programs, but no further restricted stock grants are guaranteed. 
  
 (d) No Representations. All stock options and restricted stock granted
to Executive are governed by Exult’s Equity Incentive Plan (or its successor or replacement plan) and any terms or conditions imposed by Exult in connection with the options or restricted stock, as applicable, and Executive’s acceptance of
stock options or restricted stock, as applicable, constitutes Executive’s agreement that such stock options and restricted stock, and Executive’s rights and obligations thereunder, will be governed thereby. No representations or promises
are made to Executive regarding the value of Exult stock or options, or Exult’s business prospects. A notice of option grant, a restricted stock agreement, a copy of the option plan, and a prospectus will be made available to Executive in
connection with grants of stock options and restricted stock. Additional information about investment in Exult stock, including financial information and related risks, is contained in Exult’s Securities and Exchange Commission reports on Form
10-Q and Form 10-K. The equity plan and prospectus and Exult’s recent SEC reports are available from Exult’s HR department for Executive’s review at any time before Executive’s acceptance of employment or at any time during
Executive’s employment. Executive understands that Exult does not provide tax advice and acknowledges Exult’s recommendation that Executive consult with a tax specialist regarding Executive’s employment compensation. Sale or other
transfer of Exult stock may be limited by and subject to Exult policies as well as applicable securities laws. 
  
 4. Expense Reimbursement; Indemnification. 
  
 (a) Business Expenses. In addition to the compensation specified in Section 2, Executive shall be entitled, in accordance with the
Company’s reimbursement policies in effect from time to time, to receive reimbursement from the Company for reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder, provided Executive furnishes
the Company with vouchers, receipts and other details of such expenses in the form required by the Company sufficient to substantiate a deduction for such business expenses under all applicable rules and regulations of federal and state taxing
authorities. 
  
 (b) Relocation Expenses. The Company will
reimburse Executive’s documented out-of-pocket expenses incurred in moving his family and household goods from New Jersey to Orange County, California. In addition, the Company will pay to Executive, in addition to his salary and other
compensation to which he is entitled, a monthly living allowance, pro-rated for partial months, until the earlier of the first anniversary of the date of this Agreement or the date of sale of Executive’s house in New Jersey. The target amount
of the living allowance will be $5,000 per month, subject to adjustment to reflect the cost to executive of suitable executive level rental housing for himself and his family. Adjustment will be determined by agreement of executive and the CEO after
executive has had an opportunity to locate rental housing, and will be retroactive to the date hereof. In addition, the Company will reimburse to executive the cost to executive of any real estate agent’s sales commission paid by executive in
connection with the sale of his house in New Jersey within 365 days of the date hereof. These amounts will include a tax “gross-up” to the extent necessary to neutralize the effects of income tax on reimbursement of relocation expenses.
Executive will use reasonable good faith efforts to sell his house in New Jersey as soon as practicable without incurring a loss 

  

 3 

 
on his investment in the house, taking into account sales commissions and other costs of sale borne by Executive. 
  
 (c) Director’s and Officer’s Coverage; Indemnification.
Simultaneously with the execution of this Agreement, the Executive shall enter into a separate indemnification agreement with the Company (the “Indemnification Agreement”), and at all times during the Executive’s employment, the
Company shall include Executive as an insured under director’s and officer’s liability insurance policies as may from time to time be maintained by the Company, to the same extent that other executive officers are included as insureds
thereunder. 
  
 5. Fringe Benefits. 
  
 (a) Benefit Programs. Executive shall, throughout the period of
Executive’s employment with the Company (the “Employment Period”), be eligible to participate in all executive life and disability insurance programs, group term life insurance plans, group health plans, accidental death and
dismemberment plans and disability programs and other executive perquisites that are made available to the Company’s executive officers and for which Executive qualifies. 
  
 (b) Vacation. Executive shall earn vacation time during the Employment Period at the rate of four (4) weeks per year.
Vacation shall accrue and be taken pursuant to the Company’s vacation benefit policy set forth in the Company’s Employee Handbook. Executive also shall be eligible to participate in any “floating holiday” or “personal day
off” programs offered by the Company. It is understood that Executive will be on vacation for approximately 3.5 weeks in 2003 due to previous arrangements, and to accommodate this Executive may during the first year of employment take up to
five weeks of paid vacation before it is accrued, provided that any such pre-accrual vacation will constitute an obligation of Executive that will offset vacation as it accrues. 
  
 (c) Death Benefit. If Executive dies during the Employment Period other than as a result of suicide, Executive’s
legal representatives shall be entitled to receive an amount equal to one year of Executive’s annual salary (but in no case in excess of $425,000), payable in equal installments in accordance with Company’s standard payroll schedule
(subject to all applicable withholdings required by law), but reduced (not below 0) by the aggregate amount of the proceeds of any death benefits paid to Executive’s survivors under policies of life insurance for which the Company paid all
premiums as part of the Company’s death benefit arrangements. 
  
 (d) Disability Benefit. If during the Employment Period Executive suffers Permanent Disability as defined at the time of Permanent Disability in the Company’s 2000 Equity Incentive Plan, or a successor plan thereto other than as
a result of attempted suicide, the Company may, without any liability under this agreement and by written notice to Executive, at any time thereafter suspend or terminate the Employment Period without any severance obligation, except that Executive
shall be entitled to continue to receive payments of his salary, as in effect at the time of the incapacitation or disability leading to Permanent Disability, in accordance with the Company’s regular payroll schedule for a period 180 days after
such suspension or termination, provided that such obligation will be reduced (but not below 0) by the sum of (A) salary paid in excess of accrued vacation during periods that Executive did not work due to the incapacitation or disability leading to
Permanent Disability, plus (B) the aggregate 

  

 4 

 
amount of any monthly disability benefits paid to Executive under policies of disability insurance for which the Company paid all the premiums as part of the
Company disability benefit arrangements. 
  
 6. Employment
Attributes. 
  
 (a) At-Will. Executive’s
employment with the Company is at-will and not for a specific term and may be terminated by either the Company or Executive at any time, for any reason without cause or advance notice.  
  
 (b) Changes. The Company may change Executive’s responsibilities,
duties, title, and reporting relationships at any time for any reason. Such changes will not constitute a breach by the Company of this Agreement, but may trigger certain rights of Executive pursuant to a separate written severance arrangement with
the Company. 
  
 (c) No Severance. Upon termination of
Executive’s employment for any reason, the Company will have no severance obligation under this Agreement other than for payment of accrued but unpaid salary, vacation and expenses. Executive may, however, be entitled to severance benefits in
accordance with a separate written severance arrangement with the Company. 
  
 7. Conditions to Employment. Notwithstanding execution and delivery of this Agreement or any other document related to Executive’s employment or compensation, Executive’s employment with the Company
and rights under this Agreement or such other documents are contingent upon satisfaction of the following conditions: 
  
 (a) Proprietary Information and Inventions. Executive must execute and deliver the Company’s standard Confidential Information and Inventions
Agreement. Executive’s obligations pursuant to the Confidential Information and Inventions Agreement will survive termination of Executive’s employment with the Company. 
  
 (b) Eligibility. Executive must provide to the Company the documents listed on the standard Employment Eligibility
(I-9) Form, and demonstrate to the Company’s satisfaction Executive’s legal right to work. 
  
 (c) Prior Employment Cessation. Executive must have lawfully and effectively ceased employment with AT&T or its affiliates, and any employment
or consulting relationship with any other third party. 
  
 8.
Representations. 
  
 In order to induce the Company to hire
him as set forth in this Agreement, Executive represents, warrants and undertakes to the Company as follows: 
  
 (a) Executive has been fully advised to the extent Executive desires by counsel independent of the Company of his obligations under and the terms of all
agreements and other obligations applicable to his relationship with all prior employers or parties engaging Executive’s services and their successors (collectively, the “Prior Employers”). Executive does 

  

 5 

 
and will rely upon his own judgment and the advice he receives from counsel independent of the Company in any action he takes (or decides not to take) in
relation to his employment with Exult and with respect to his obligations to Prior Employers, but Executive will keep the Company fully informed of the nature and extent of his obligations to all Prior Employers at any time and any steps Executive
proposes to take to effect his disengagement from all Prior Employers. 
  
 (b) Executive has been fully advised by counsel independent of the Company of his obligations under and the terms of this Agreement and the other documents referenced in Section 10(c). 
  
 (c) Executive is under no contractual restriction or other restrictions or
obligations that are inconsistent with the execution of this Agreement or the performance of Executive’s duties and covenants hereunder, and will not breach any obligations to any Prior Employer. 
  
 (d) Executive is under no physical or mental impairment that would interfere
with Executive’s ability to perform his duties hereunder. 
  
 (e) Executive has full right and power to enter into this Agreement and perform his duties and covenants hereunder without any consent from any third party. 
  
 (f) Executive’s performance of his duties and covenants hereunder will not infringe the rights, including intellectual
property rights, of any third party. 
  
 (g) All information
provided by Executive to the Company is true, correct and complete. 
  
 9. Certain Covenants. 
  
 (a) Focus on
Company. During the Employment Period, Executive shall devote his full business time and energy solely and exclusively to the performance of his duties to the Company, and shall render his services under this Agreement fully, faithfully,
diligently, and to the best of his ability. During the Employment Period, Executive shall not directly or indirectly provide services of any kind or character to or through any person, firm or other entity except the Company, unless otherwise
authorized in writing by the CEO. However, Executive shall have the right to perform such incidental services as are necessary in connection with (a) Executive’s personal passive investments, but only if Executive is not obligated or required
to (and shall not in fact) devote any managerial efforts which interfere with Executive’s services to the Company, or (b) Executive’s charitable or community activities, or participation in trade or professional organizations, but only if
such incidental services do not interfere with Executive’s services to the Company. 
  
 (b) Prior Employers. Executive will not, in connection with his employment with the Company, breach any obligation to any Prior Employer or other third party, including without limitation by improperly using or
disclosing any confidential information, proprietary information or trade secrets belonging to any Prior Employer, or bringing onto the premises of the Company or in any other way using or referring to any unpublished document or any property
belonging to any Prior Employer unless consented to in writing by such Prior 

  

 6 

 
Employer, and will return all property and confidential information belonging to any Prior Employer. This is in addition to all obligations of Executive
under the Confidential Information and Inventions Agreement. 
  
 (c) Non-Solicitation. During the Employment Period and for one (1) year following termination of Executive’s employment, Executive shall not encourage or solicit any of the Company’s employees to leave the Company’s
employ for any reason or interfere in any other manner with employment relationships at the time existing between the Company and its employees; or solicit any client of the Company, induce any of the Company’s clients to terminate its existing
business relationship with the Company or interfere in any other manner with any existing business relationship between the Company and any client or other third party. Executive acknowledges that monetary damages may not be sufficient to compensate
the Company for any economic loss that may be incurred by reason of his breach of the foregoing restrictive covenants. Accordingly, in the event of any such breach, the Company shall, in addition to any remedies available to the Company at law, be
entitled to obtain equitable relief in the form of an injunction precluding Executive from continuing such breach. 
  
 10. General 
  
 (a) Successors and Assigns. This Agreement is personal in its nature and may not be assigned by either party, whether by operation of law or
otherwise, without the prior written consent of the other party, except that any right, title or interest of the Company arising out of this Agreement may be assigned to any corporation or entity controlling, controlled by, or under common control
with the Company, or to any successor of the Company or any entity acquiring all or substantially all of the assets of the Company; provided, however, that no such assignment shall relieve the Company of its obligations hereunder without the express
written consent of the Executive. 
  
 (b) Notices. Any
notices, demands or other communications required or desired to be given by any party shall be in writing and shall be validly given to another party if served either personally or if deposited in the United States mail, certified or registered,
postage prepaid, return receipt requested. If such notice, demand or other communication shall be served personally, service shall be conclusively deemed made at the time of such personal service. If such notice, demand or other communication is
given by mail, such notice shall be conclusively deemed given forty-eight (48) hours after the deposit thereof in the United States mail addressed to the party to whom such notice, demand or other communication is to be given as hereinafter set
forth: 
  

	 	 	 To the Company:
	  	Exult, Inc.
	 	 	 	  	121 Innovation Drive, Suite 200
	 	 	 	  	Irvine, California 92612
	 	 	 	  	Attention: Chief Executive Officer
			
	 	 	 With a copy to:
	  	General Counsel
			
	 	 	 To Executive:
	  	At his address of record as maintained in the Company’s employment files

  

 7 

 Any party may change its address for the purpose of receiving notices, demands and other communications by providing
written notice to the other party in the manner described in this paragraph. 
  
 (c) Entire Agreement. Except as this Agreement may expressly provide otherwise, this Agreement, any separate document pursuant to which the Company undertakes severance obligations to Executive, the
Company’s Confidential Information and Inventions Agreement, the Indemnification Agreement, and the separate documentation related to Executive’s stock options and restricted stock together constitute the entire agreement and understanding
of the Company and Executive with respect to the terms and conditions of Executive’s employment with the Company and the provision by the Company of any consideration or benefits, and supersede all prior and contemporaneous written or verbal
agreements and understandings between Executive and the Company relating to such subject matter. This Agreement may only be amended by written instrument signed by Executive and an authorized officer of the Company. Any and all prior agreements,
understandings or representations relating to the Executive’s employment with the Company are terminated and cancelled in their entirety and are of no further force or effect. 
  
 (d) Governing Law; Severability. This Agreement will be construed and interpreted under the laws of the State
of California applicable to agreements executed and to be wholly performed within the State of California. If any provision of this Agreement as applied to any party or to any circumstance is adjudged by a court of competent jurisdiction to be void
or unenforceable for any reason, the invalidity of that provision shall in no way affect (to the maximum extent permissible by law) the application of such provision under circumstances different from those adjudicated by the court, the application
of any other provision of this Agreement, or the enforceability or invalidity of this Agreement as a whole. If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any jurisdiction by reason of the scope, extent
or duration of its coverage, then such provision shall be deemed amended to the extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of
the parties, then such provision will be stricken and the remainder of this Agreement shall continue in full force and effect. 
  
 (e) Remedies. All rights and remedies provided pursuant to this Agreement or by law shall be cumulative, and no such right or remedy shall be
exclusive of any other. A party may pursue any one or more rights or remedies hereunder or may seek damages or specific performance in the event of another party’s breach hereunder or may pursue any other remedy by law or equity, whether or not
stated in this Agreement. 
  
 (f) Arbitration. Any
and all disputes and claims between Executive and the Company that arise out of Executive’s employment with the Company or termination thereof shall be resolved through final and binding arbitration. This shall include, without limitation,
disputes relating to this Agreement or any of the other documents referred to in Section 10(c), claims for wrongful termination or breach of contract or breach of the covenant of good faith and fair dealing, public policy violation,
harassment, discrimination, or other claims under any federal, state or local law or regulation now in existence or hereinafter enacted and as amended from time to time. The only claims not covered by this Agreement are claims for benefits
under the workers’ compensation or unemployment insurance laws, which will be resolved pursuant to 

  

 8 

 
those laws, and any claims that are deemed by a court of competent jurisdiction not to be subject to mandatory arbitration under applicable law. Any demand
for arbitration must be made within 365 days of the date on which the dispute first arose (unless a longer period of time is required by law), or it will be deemed waived by both parties. Binding arbitration will be conducted in Orange County,
California in accordance with the rules and regulations of the American Arbitration Association. Executive understands and agrees that the arbitration shall be instead of any civil litigation and that this means that Executive is waiving his right
to a jury trial as to such claims. The parties further understand and agree that the arbitrator’s decision shall be final and binding to the fullest extent permitted by law and enforceable by any court having jurisdiction. The Company shall pay
the arbitrator’s compensation and any fees for the arbitration, unless the arbitrator directs otherwise in the award, or unless the law where the arbitration occurs provides otherwise. The prevailing party in any arbitration conducted pursuant
to this Section 10(f), and any appeal therefrom or related thereto, or any litigation between Executive and the Company related to Executive’s employment or termination thereof that occurs notwithstanding this arbitration provision (all
of the foregoing being referred to as “Proceedings”), shall be entitled to recover from the non-prevailing party all reasonable attorneys’ costs and fees incurred by the prevailing party in the Proceedings. The identity of the
prevailing party in any Proceeding will be determined by the arbitrator or other trier of fact or tribunal in the Proceeding as the party most nearly achieving the result sought, although the arbitrator or other trier of fact or tribunal may decide
in any Proceeding that there is no prevailing party if, on the basis of all of the facts and circumstances, the interests of justice so require. In addition, the Company shall propose a reasonable set of rules to guide any Proceedings. Such rules
shall be designed to lead to a prompt and just result without undue delay or expense, but will not be unduly prejudicial to either party. If Executive agrees to such proposed rules and guidelines, the Company will pay on Executive’s behalf or
advance to Executive all of Executive’s reasonable attorneys’ fees and costs incurred in the Proceedings. Executive’s acceptance of such payments or advances will constitute Executive’s agreement to reimburse the Company therefor
if the Company is found by the arbitrator or other trier of fact or tribunal to be the prevailing party in the Proceeding. 
  
 (g) Waivers; Amendments. The waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of
any later breach of that provision. This Agreement may be modified only by written agreement signed by Executive and the Company. 
  
 (h) Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed an original, but all of which
together shall constitute but one and the same instrument. Facsimile or photographic copies of originally signed copies of this Agreement will be deemed to be originals. 
  

 9 

 IN WITNESS WHEREOF, the Company and Executive have entered into this Agreement as of the date first above
written. 
  

	Exult, Inc.
		
	 By:
	 	  

	 	 	 James C. Madden, V

	 	 	 President & CEO

	 	 	 
		
	 	 	  

	 	 	 John A. Adams

  

 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]