Document:

Citicorp Software License and Services Agreement

    Exhibit
      10.49

     

    
      [*]
        = CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
        SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
        WITH RESPECT TO THE OMITTED PORTIONS.

    MASTER
      

    SOFTWARE
      LICENSE & SUPPORT AGREEMENT

    

    

    
      	
              Commencement
                Date:

            	
              February
                1, 2006

            

    

    

    
      	
              Party:

            	
              LICENSOR

            	
              LICENSEE

            
	
              Name:

            	
              Chordiant
                Software, Inc.

            	
              Citicorp
                Credit Services, Inc. (USA)

            
	
              Address:

            	
              20400
                Stevens Creek Blvd.

              Cupertino,
                CA 95014

            	
              14000
                Citi Cards Way

              Jacksonville,
                FL 32258

            
	
              State
                of Incorporation:

            	
              Delaware

            	
              Delaware

            

    

     

    

    IN
      CONSIDERATION of the
      mutual covenants and undertakings contained herein,
      and intending to be legally bound, Licensor and Licensee (as designated above)
      agree as follows.

    

    
      	1.  	
              DEFINITIONS

            

    

    

    1.1 Specific
      Words or Phrases. For
      purposes of this Agreement, each word or phrase listed below shall have the
      meaning designated. Other words or phrases used in this Agreement may be defined
      in the context in which they are used, and shall have the respective meaning
      there designated.

    

    [*]

    

    “Affiliate”
      means and includes any entity that directly or indirectly controls, is
      controlled by, or is under common control with Licensee, where “control” means
      the ownership of, or the power to vote, at least twenty percent (20%) of the
      voting stock, shares or interests of such entity. An entity that otherwise
      qualifies under this definition will be included within the meaning of
“Affiliate” even though it qualifies after the execution of this
      Agreement.

    

    “Agreement”
      means the terms of this Master Software License & Support Agreement
      (sometimes referred to as “Master Agreement”), together with the appendices and
      other exhibits attached hereto or incorporated herein by reference; provided,
      however, that for each particular License Schedule, reference to “Agreement”
shall be construed solely as a reference to the agreement that arises as a
      result of the execution of the License Schedule, which agreement shall be a
      two
      party agreement between Licensor and the specific entity (either the entity
      designated above as “Licensee” or an Affiliate) that executes the License
      Schedule.

    

    “Defect”
      means a defect, failure, malfunction, or nonconformity in the Software that
      prevents the Software from operating in accordance with [*].

    

    “Deliver”
      and “Delivered” and “Delivery” mean
      delivery of the Software by Licensor to the Delivery Site specified in the
      applicable License Schedule.

    

    “Documentation”
      means all documents and materials (in any language, format or medium) that
      are
      normally supplied by Licensor to its commercial licensees to aid in the use
      and
      operation of the Software, and all modifications to such documents or materials
      that are made by or on behalf of Licensor from time to time (provided such
      modifications do not diminish the performance or operational capabilities of
      the
      Software), including: (i) functional, technical, design and performance
      specifications and (ii) installation, configuration, administration, operation
      and maintenance procedures and instructions, and (iii) training guides and
      user
      manuals.

    

    "Intellectual
      Property Rights"
      means all trade secrets, patents and patent applications, trade marks (whether
      registered or unregistered and including any goodwill acquired in such trade
      marks), service marks, trade names, business names, internet domain names,
      e-mail address names, copyrights (including rights in computer software), moral
      rights, database rights, design rights, rights in know-how, rights in
      confidential information, rights in inventions (whether patentable or not)
      and
      all other intellectual property and proprietary rights (whether registered
      or
      unregistered, and any application for the foregoing), and all other equivalent
      or similar rights which may subsist anywhere in the world.

    

    “License”
      means a license to use the Software granted pursuant to the terms and conditions
      of a License Schedule.

    

    "Licensee"
      means, for the general purposes of the Master Agreement, the entity designated
      above as “Licensee”. However, for the particular purposes of any agreement that
      arises as a result of a License Schedule, reference to “Licensee” shall be
      construed solely as a reference to the specific entity (either the entity
      designated above as “Licensee” or an Affiliate) that executes the License
      Schedule.

    

    “License
      Schedule”
      means a transactional document that is submitted pursuant to this Master
      Agreement by either the entity designated above as “Licensee” or any Affiliate,
      and describes the Software and services to be provided by Licensor to such
      Licensee / Affiliate.

    

    “Maintenance
      Services”
      consists of the support and maintenance services to be provided by Licensor
      in
      accordance with the requirements set forth or referenced in Section
      11 and Appendix B.

    

    “Party”
      means either the “Licensor” or “Licensee”, individually as the context so
      requires; and “Parties”
      means the “Licensor” and “Licensee”, collectively.

    

    “Personnel”
      means and includes a Party’s or an Affiliate’s directors, officers, employees,
      agents, auditors, consultants and subcontractors.

    

    "Software"
      means the computer programs made available to Licensee and the Affiliates by
      Licensor under this Master Agreement, including any customizations,
      enhancements, updates, upgrades, releases, Defect corrections, and other
      modifications thereto provided to Licensee by Licensor, together with the
      related Documentation.

    

    “Source
      Code”
      means and includes human-readable computer programming code, associated
      procedural code, listings, flow charts, logic diagrams, software tools,
      executables, libraries, scripts and related and supporting documentation
      corresponding to the Software and all subsequent versions (including assembly,
      linkage and other utilities), suitable and sufficient to enable a person
      possessing reasonable skill and expertise in computer software and information
      technology (i) to build, load, and operate a machine-executable object code
      version of the Software that is equivalent to the latest version of the Software
      furnished by Licensor, and (ii) to maintain, support, modify, improve and
      enhance the Software.

    

    "Specifications"
      means and includes: (i) the standard published specifications for the Software
      (including both Licensor's proprietary software and all third-party software
      that is embedded into, or otherwise furnished by Licensor with the Software);
      and (ii) any additional written description of the functional, technical, design
      and performance characteristics of the Software attached to or referenced in
      a
      License Schedule.

    

    1.2 Common
      Words.
      The following words shall be interpreted as designated: (i) “or” connotes any
      combination of all or any of the items listed; (ii) where “including” is used to
      refer to an example or begins a list of items, such example or items shall
      not
      be exclusive; and, (iii) “specified” requires that an express statement is
      contained in the relevant document.

    

    
      	
              2.

            	
              TERM
                AND TERMINATION

            

    

    

    2.1 Term.
      This Master Agreement shall commence as of the Commencement Date designated
      above, and shall continue in effect thereafter unless superceded or otherwise
      terminated by agreement of the Parties. Each License Schedule shall only become
      effective when duly signed on behalf of the Parties to be bound thereby, and
      shall continue in effect through the earlier of: (i) the expiration date for
      the
      Licenses granted thereunder, or (ii) the date of termination specified by either
      Party in accordance with the provisions hereof. For the avoidance of doubt,
      the
      termination of the Master Agreement shall not result in the termination of
      any
      License Schedule, each License Schedule being terminable only in accordance
      with
      its own provisions.

    

    2.2 Termination
      for Cause. If
      either Party breaches a material obligation under a License Schedule and fails
      to cure such breach within thirty (30) days from the date it receives from
      the
      non-breaching Party a notice of the breach and a demand for cure, then the
      non-breaching Party may thereafter terminate the applicable License Schedule
      immediately on notice. Notice of termination for any License Schedule shall
      not
      be construed to be notice of termination for any other License Schedule.

    

    2.3 Orderly
      Transfer. Upon
      the termination of a License Schedule for any reason whatsoever (including
      a
      default by either Party), Licensor will provide such information, cooperation
      and assistance to Licensee, as Licensee may reasonably request, to assure an
      orderly return or transfer to Licensee or Licensee’s designee of all proprietary
      data (and related records and files) and materials of Licensee in their then
      current condition. Upon termination of a License Schedule by Licensor pursuant
      to Section 2.2, and except as otherwise provided herein or in such License
      Schedule, Licensee will return all copies of the Software under such License
      Schedule to Licensor or destroy all copies of the Software under such License
      Schedule and, if requested by Licensor, provide Licensor with a certificate
      signed by a duly authorized representative of Licensee attesting to such
      destruction with thirty (30) days of the effective date of
      termination.

    

    2.4 Retention
      of Archival Copy. If
      Licensee’s right to use any Software is terminated for any reason whatsoever,
      then Licensee shall nevertheless be entitled to retain copies of the Software
      and Documentation for archival purposes and to satisfy Licensee’s obligations
      under all applicable laws.

    

    3 GRANTING
      OF SOFTWARE LICENSES

    

    3.1  Obligation
      to License. This
      Master Agreement does not by itself commit Licensee or any Affiliate to license
      any software from Licensor. Rather, this Master Agreement merely sets forth
      the
      terms and conditions that will govern the licensing of Licensor’s Software (as
      listed in Licensor’s then current price list) to Licensee or an Affiliate as a
      result of the execution of a License Schedule by Licensor and Licensee or an
      Affiliate.

    

    3.2  License
      Schedule.
      License Schedules may be entered under this Master Agreement by either the
      entity designated above as “Licensee” or any Affiliate. The entity that executes
      a License Schedule with Licensor shall be considered the “Licensee” for all
      purposes of the License Schedule; and the License Schedule shall be considered
      a
      two party agreement between Licensor and such entity. Each License Schedule
      shall be substantially in the form of Appendix
      A,
      shall incorporate by reference the provisions of this Master Agreement as though
      such provisions were set forth therein in their entirety, and shall set forth:
      (i) a description of the Software to be licensed, (ii) the fees to be paid
      by
      Licensee for the Software License and the related Maintenance Services, and,
      (iii) such additional terms and conditions as may be mutually agreed upon by
      Licensor and the respective “Licensee”. Each License Schedule shall be deemed to
      incorporate the applicable Specifications for the Software that are in effect
      on
      the date the License Schedule is executed by the “Licensee”. In no event shall
      any shrinkwrap or any clickwrap (or other electronic agreement) constitute
      a
      License Schedule or binding agreement hereunder, even if a user or authorized
      officer of Licensee or an Affiliate purports to have affirmatively accepted
      such
      terms. 

    

    3.3 Changes
      to License Schedule. Reserved

    

    3.4 Divested
      Entities. 
      If control of an entity, or a division or department within an entity, that
      is
      included within the definition of “Licensee” or an “Affiliate” is sold or
      otherwise transferred to one or more unrelated third parties, such entity,
      division or department (“Divested Entity”) shall nevertheless continue to have a
      right to acquire Software licenses pursuant to this Master Agreement (exclusive
      of any pricing or discount terms for the purchase of additional licenses set
      forth on a License Schedule) for [*] after the effective date of such transfer
      at a price no greater than the prices set forth in Licensor’s then current
      published product price list or such other price as is negotiated between
      Licensor and the Divested Entity. 

    

    3.5 Evaluation
      License.
      Reserved. 

    

    4. DELIVERY
      AND INSTALLATION

    

    4.1 Delivery
      and Installation.
      Licensor will Deliver the Software and Documentation to the Delivery location,
      on or before the Delivery date, as specified in the applicable License Schedule
      or as otherwise agreed to by the Parties and confirmed in writing. If a Delivery
      date is not specified on the License Schedule, then the scheduled Delivery
      date
      shall be the date that is mutually agreed to by the Parties and confirmed in
      writing. Licensee is responsible for the Software installation. . 

     

    4.2 Installation
      by Licensee. If
      Licensee is responsible for installing the Software, then Licensor will provide
      written instructions and such other assistance as Licensee may reasonably
      require to complete the installation at mutually agreed upon time and materials
      rates; provided that such assistance is not already provided as part of
      Maintenance Services. 

    

    5. [*]

    

    6. SCOPE
      OF LICENSE 

    

    6.1  Proprietary
      Rights to Software.
      As between Licensor and Licensee, Licensor shall be deemed to own the
      Intellectual Property Rights in or to the Software; and nothing contained in
      this Agreement shall be construed to convey any Intellectual Property Rights
      in
      or to the Software to Licensee (or to any party claiming through Licensee)
      other
      than the license rights expressly set forth in this Master Agreement and in
      the
      applicable License Schedule. 

     

    6.2  Type
      of License.
      Each License granted by Licensor pursuant to this Agreement shall be a fully
      paid up, non-exclusive, irrevocable, perpetual (except as set forth in Section
      2
      above) [*] license to use the Software in the furtherance of Licensee’s or its
      Affiliates’ business purposes, subject only to such use restrictions as may be
      specifically set forth on the applicable License Schedule, including without
      limitation geographic restrictions and restrictions on the number or location
      of
      the computers or the users. Unless otherwise expressly set forth on the
      applicable License Schedule, each License shall also entitle authorized users
      (as designated in Section
      6.3)
      to access and use the Software, or applications developed using the Software,
      in
      connection with, through or on any associated or interconnected networks
      (including internet or intranet) without payment of any additional
      fees.

    

    6.3  Authorized
      Users.
      Unless otherwise specifically set forth on the applicable License Schedule,
      each
      License granted pursuant to this Master Agreement shall include the right for
      Licensee to permit the Software to be used by or on behalf of: (i) Affiliates
      (ii) third parties engaged by Licensee to conduct all or any portion of
      Licensee's or an Affiliate’s information processing, programming, network
      services, disaster, back up, or recovery services, and (ii) consultants and
      clients of Licensee or an Affiliate, provided that such usage by consultants
      and
      clients must be considered part of the business of Licensee or an Affiliate
      .
      Licensee will be fully responsible for all acts and omissions of its third
      parties, consultants and clients regarding the Software. If Software was
      acquired, or is being used by or on behalf of a Divested Entity, so that the
      Divested Entity is the “Licensee” from an operating perspective (whether the
      acquisition occurred prior or subsequent to the change in status), then the
      Divested Entity will continue to enjoy its status as the Licensee for up to
      [*]
      after its change of status, provided (i) the Divested Entity is the legal entity
      that submitted the applicable License Schedule or received an assignment
      thereof, or (ii) the legal entity assuming control of the Divested Entity agrees
      in writing to be bound by the terms and conditions of the License. 

    

    6.4 Installation
      Transfers.
      If a License is subject to restrictions on the number or locations of the
      computer on which the Software may be installed, Licensee shall nevertheless
      be
      entitled (at no additional charge) to transfer the Software (subject to such
      use
      restrictions): (i) from one computer to another; (ii) from one installation
      site
      to another [*]. Licensee will provide Licensor with notice following any such
      transfer. 

    

    6.5 Reproductions.
      Licensee may reproduce the Software as Licensee may reasonably deem necessary
      to
      satisfy the requirements of Licensee and its Affiliates within the scope of
      the
      applicable License (including reproducing the Software for backup and archival
      purposes). All reproductions shall include any copyright or other proprietary
      notices contained on the originals.

    

    6.6  Substitute
      Equipment and Parallel/Transition Processing.
      Each License includes (at no additional charge) the right to install and use
      the
      Software on temporary substitute or back-up equipment. If Licensee (i) relocates
      the installation site, (ii) acquires additional equipment (including replacement
      equipment), (iii) acquires an entity or business that Licensee elects to
      transition to the use of the Software, or (iv) divests an entity or business
      that has been using the Software, Licensee will be entitled (at no additional
      charge) to use a duplicate copy of the Software to conduct parallel and
      transition processing during the time required (up to [*] months) to accomplish
      and facilitate such relocation, transition, acquisition or
      divestiture.

    

    6.7 Disaster
      Recovery.
      Each License includes the right (at no additional charge) to have the Software
      tested periodically for viability at any Licensee location or at a location
      of a
      third-party engaged by Licensee to provide disaster recovery, contingency or
      business continuity services for Licensee. If a third party performs such tests,
      Licensee will require such third party to be bound by written agreement to
      treat
      the Software as confidential information. Licensee will also be entitled to
      make
      and keep copies of Software and its Documentation at a separate facility for
      backup (including hot back up), archival and emergency purposes. 

    

    6.8  Replacement
      Version of Software.
      If Licensee changes or upgrades the operating system, or replaces or modifies
      the equipment on which Licensee operates the Software, then Licensor will (at
      no
      additional charge) provide to Licensee a version of the Software compatible
      with
      such changed operating system, or replaced or modified equipment provided that
      (i) Licensor has developed as of the Commencement Date and is then currently
      maintaining, such a version that is substantially similar to the version
      originally licensed as to features, functionality and price, (ii) Licensee
      is
      then entitled to receive Maintenance Services, and (iii) in using such
      additional version of the Software, Licensee does not exceed the scope of its
      license with Licensor (i.e., the aggregate number of CPU and user licenses
      used
      on all versions of the Software in the aggregate does not exceed the total
      number of CPU and user licenses originally licensed by Licensee.) 

     

    6.9 Restrictions.
      Except
      to the extent authorized or permitted in this Agreement or by applicable law
      without the possibility of contractual waiver, Licensee shall not: (i) copy,
      transfer or distribute the Software (electronically or otherwise); (ii) reverse
      assemble, reverse engineer, reverse compile, or otherwise translate the
      Software; or (iii) sublicense or assign the license for the
      Software.

    

    7. SOURCE
      CODE 

    

    7.1 Escrow
      Arrangement.
      If Source Code for the Software is not being Delivered to Licensee directly
      by
      Licensor as part of the License, then (at Licensee’s request) within ten (10)
      days of the execution of the License Schedule for such Software, Licensor will
      deposit a current copy of the Source Code with an independent and qualified
      escrow agent acceptable to Licensee. Throughout the term of the License,
      Licensor will keep the Source Code complete and current by Delivering to the
      escrow agent any and all changes to the Source Code for all related
      modifications, within thirty (30) days after the modifications are made
      available to Licensee. The escrow agent will maintain the Source Code pursuant
      to an escrow agreement in a form and with terms acceptable to Licensee. Licensor
      shall ensure that the Escrow Agent is obligated to notify Licensee in writing
      promptly upon receipt of the deposit of such Source Code, or, where such Source
      Code has already been deposited pursuant to a pre-existing source code escrow
      arrangement, upon receipt of notice from the Licensor that Licensee is now
      a
      beneficiary of such escrow arrangement, in each case indicating in such notice
      to Licensee that such Source Code has been deposited as required. The escrow
      agreement shall designate Licensee as a third party beneficiary, and entitle
      Licensee to inspect, test and review the Source Code promptly upon request.
      The
      escrow agreement shall also require the escrow agent to release and Deliver
      the
      Source Code to Licensee upon certification from Licensee that any one of the
      following circumstances has occurred.

     

    
      	7.1.1  	
              Licensor
                (i) files a voluntary petition in bankruptcy, (ii) makes a general
                assignment for the benefit of its creditors, (iii) suffers or permits
                the
                appointment of a trustee or receiver for its business assets, (iv)
                becomes
                subject to any proceeding under any bankruptcy or insolvency law
                which is
                either consented to by Licensor or is not dismissed within sixty
                (60)
                days, (v) initiates actions to wind up or liquidate its business
                voluntarily or otherwise, (vi) ceases doing business in the ordinary
                course, or (vii)
                suffers, permits or initiates the occurrence of anything analogous
                to any
                of the events described in this Subsection under the laws of any
                applicable jurisdiction.

            

    

    

    
      	7.1.2  	
              [*]

            

    

    

    
      	7.1.3  	
              [*]

            

    

    

    
      	
              7.1.4

            	
              Licensor
                refuses or becomes unable to provide maintenance and support services
                to
                Licensee at any time while Licensee is continuing to use the Software
                in
                accordance with the provisions of the License granted pursuant to
                this
                Agreement, provided that Licensee is not in default of any material
                obligation assumed under this
                Agreement.

            

    

    

    A
      copy of the fully executed escrow agreement shall be attached to this Agreement
      or the applicable License Schedule as Exhibit
      1.

    

    7.2 License.
      If
      Source Code for Software is Delivered to Licensee (either directly by Licensor
      or by an escrow agent in fulfillment of its obligations under an applicable
      escrow agreement), then the Source Code will be subject to the License for
      the
      applicable Software. Each such License shall entitle Licensee to use and modify
      the Source Code and the Software, as reasonably necessary, in order to: (i)
      integrate the Software with Licensee’s other systems and programs; (ii) cause
      the Software to comply with changes in applicable laws, regulations, industry
      standards or market practice; (iii) enable the Software to remain current with
      technological innovations; and (iv) enable the Software to fulfill Licensee’s
      business purposes within the scope of the License granted pursuant to the terms
      and condition of this Agreement. Any modified versions of the Software resulting
      from Licensee’s use of the Source Code shall be subject to all the terms and
      conditions of this Agreement; provided, however, that if Licensee obtains the
      right to use the Source Code pursuant to Section
      7.1,
      then Licensor shall have no rights, title or interest in or to any modifications
      made to the Software or the Source Code by or on behalf of Licensee, and all
      Intellectual Property Rights in and to any such modifications shall vest
      exclusively in Licensee.

    

    8. DOCUMENTATION
      AND TRAINING

    

    
      	8.1  	
              Documentation.
                On or before the date the Software is Delivered, Licensor will (at
                no
                additional charge) Deliver to Licensee at least one (1) electronic
                and one
                (1) printed form copy of all generally available Documentation for
                the
                Software. The Documentation shall be sufficient to enable Licensee’s
                Personnel to use and to understand the use and operation of the Software,
                and shall conform to generally accepted industry standards for the
                use,
                operation and internal operating logic of software. Throughout the
                warranty period or the term of any maintenance service agreement,
                Licensor
                will provide copies of any revisions, improvements, enhancements,
                modifications and updates to the Documentation, at no additional
                cost.
                Licensee may make a reasonable number of copies of the Documentation
                for
                Licensee’s use, provided Licensee reproduces copyright notices and any
                other legends of ownership on each copy. 

            

    

    

    
      	8.2  	
              Training.  Reserved

            

    

    

    9. FEES
      AND PAYMENT TERMS

    

    9.1  Fees
      and Discounts. The
      License fees and all other charges to be paid by Licensee for the Software
      or
      services provided by Licensor pursuant to this Agreement shall be set forth
      on
      the applicable License Schedule. 

    

    9.2  Pricing
      Adjustments.
      During the term of this Master Agreement, Licensor will not increase its list
      prices for Maintenance Services provided to Licensee or an Affiliate by more
      than the lesser of: (i) the amount by which Licensor increased the comparable
      fees or charges for its other commercial customers; (ii) five percent (5%)
      for
      each twelve (12) month period; and (iii) the percentage rate of increase in
      the
      CPI (all items) for Urban Wage Earners and Clerical Workers from the preceding
      calendar year as determined by the United States Bureau of Labor Statistics.
      

    

    9.3 Taxes.
      Licensor
      may invoice Licensee for sales and use taxes properly levied against or upon
      (i)
      the furnishing of the Software and any related services to Licensee by Licensor
      pursuant to this Agreement, or (ii) the use thereof by Licensee. However,
      Licensee shall not be obligated to pay any penalties, interest, or late charges
      imposed as a result of Licensor's failure to remit such taxes to the taxing
      authority on a timely basis. In addition, if Licensor fails to provide Licensee
      with timely notice of any tax audit that could result in an increase in the
      amount of sales or use taxes assessed hereunder, then Licensee shall not be
      required to pay any additional taxes assessed as a result of such audit.
      Licensor shall be solely responsible for the payment of all other taxes,
      including personal property taxes, franchise taxes, corporate excise or
      corporate privilege, property or license taxes, all taxes relating to Licensor’s
      Personnel, and all taxes based on the net income or gross revenues of
      Licensor.

    

    9.4 Reimbursable
      Expenses.
      To the extent applicable, Licensor will only be reimbursed for expenses that
      are
      reasonable, warranted and cost effective, and that have been approved in advance
      by Licensee. For each item of expense for which reimbursement is requested,
      Licensor will submit substantiating documentation in accordance with Licensee’s
      policies. All approved business expenses and pass-through charges will be
      reimbursed at cost (as actually incurred), without mark-up.

    

    9.5 Terms
      of Payment.
      No amount arising under this Agreement shall be due from Licensee prior to
      Licensee’s receipt of a fully executed copy of this Agreement and the applicable
      License Schedule, and Licensee’s receipt of an invoice: (i) referencing this
      Agreement and the applicable License Schedule; (ii) separately itemizing the
      charges for the Software, services or other items covered therein, and setting
      forth, in reasonable detail, the basis for the charges; and (iii) including,
      in
      the case of any reimbursable expenses or other charges (including taxes),
      receipts or other documentation acceptable to Licensee. Unless otherwise
      specified on a License Schedule, Licensor may invoice Licensee for the License
      fee on the date the Software has been Delivered by Licensor. Licensor may
      invoice Licensee for the Maintenance Service fees for the initial Maintenance
      Service term on the date the Software has been Delivered by Licensor.
      Maintenance Service fees for renewal terms may be invoiced not more than sixty
      (60) days prior to the effective date of renewal. Such Maintenance Service
      fees
      shall be set forth on a License Schedule as a percentage of the net License
      fees
      paid by Licensee thereunder. Licensor may invoice Licensee for any other charges
      payable under this Agreement after the occurrence of the event giving rise
      to
      the payment obligation underlying the invoice. All invoices shall be submitted
      to Licensee at the billing address designated on the applicable License
      Schedule. Each properly and accurately prepared invoice shall be payable within
      [*] days after its receipt by Licensee. Licensee will not be liable for interest
      or other late fees on past due invoices. Licensor specifically covenants that
      it
      will not use any methods of electronic repossession for any reason. All payments
      made by Customer shall be in U.S. Dollars and directed to:

    

    Chordiant
      Software Inc.

    [*]

    San
      Jose, CA 95161-[*]

    

    Or
      wire to:

    Comerica
      Bank

    Chordiant
      Software, Inc.

    Account#:
      [*]

    Routing
      #: [*]

    

    9.6 Disputed
      Invoices.
      Licensee may withhold payments for any item(s) on Licensor's invoice that
      Licensee reasonably disputes in good faith.  Licensee shall provide to
      Licensor written notice of its intention to withhold payment, including the
      reason(s) for Licensee's reasonable dispute of the invoice (the “Dispute
      Notice”).  Following receipt of the Dispute Notice, Licensor shall review
      the invoice in question and, if appropriate, send Licensee a corrected
      invoice.  If Licensor does not agree with Licensee's reasons for
      withholding payment or, if sent, the corrected invoice does not resolve the
      dispute to Licensee's satisfaction, then either party shall notify in writing
      the other party of the fact that the dispute continues (the “Response Notice”).

    

    The
      parties shall use commercially reasonably efforts to resolve or settle the
      dispute within ninety (90) days from the date of the Response Notice. Within
      thirty (30) days from the date of receipt of the Response Notice, executives
      of
      both companies shall first meet in person to negotiate in good faith a
      resolution or settlement of the dispute. Licensor’s executive(s) shall be at the
      President or CEO level, and Licensee’s executive(s) shall be either the CIO of
      Citigroup N.A. Consumer Group or senior executive(s) designated by such person.
      

    

    Pending
      settlement or resolution of the issue(s), Licensee's non-payment of these items
      shall not constitute default by Licensee, and shall not entitle Licensor to
      suspend or delay its furnishing of the Software or performance of services
      for a
      period of [*] from the end of the ninety (90) day period of executive
      conferences; provided that Licensee continues to pay all undisputed invoices
      in
      accordance with the provisions of Section 9.5.   After expiration of
      such [*] period, Licensor may suspend its furnishing of Software or performance
      of services covered by the disputed item(s).

     
      

    9.7 Transaction Information.
      For three years after an invoice has been paid, Licensor will maintain and
      (upon
      Licensee's reasonable request) will make available the records necessary to
      substantiate the correctness of such invoice. In addition, if requested by
      Licensee, Licensor shall make available to Licensee detailed transactional
      information related to products and services that have been acquired by Licensee
      and the Affiliates under this Agreement. The transactional information will
      be
      provided by Licensor in an electronic data format specified by Licensee provided
      such format is supported by Licensor and will include: (i) standard invoice
      and
      product attributes contained in Licensor’s systems, and (ii) sufficient details
      to allow Licensee and its Affiliates to link the invoice and product attributes
      to invoice payment.

    

    10. REPRESENTATIONS
      AND WARRANTIES

    

    10.1 Authority
      and Non-Infringement.
      Licensor represents and warrants that Licensor has all rights and authority
      required to enter into this Agreement and each License Schedule, and to provide
      the Software and perform the services contemplated by this Agreement, free
      from
      all liens, claims, encumbrances, security interests and other restrictions.
      Subject to the applicable terms and conditions of this Agreement and the
      applicable License Schedule, Licensee and Affiliates will be entitled to use
      and
      enjoy the benefit of all Software and services without adverse interruption
      or
      disturbance by Licensor or any entity asserting a claim under or through
      Licensor. Licensor further represents and warrants that the services, Software
      and all other materials of whatsoever nature furnished under this Agreement,
      and
      the use thereof by Licensee or the Affiliates in accordance with the terms
      and
      conditions of this Agreement, will not infringe (whether directly,
      contributorily, by inducement or otherwise), misappropriate or violate the
      Intellectual Property Rights of any third party, or violate the laws,
      regulations or orders of any governmental or judicial authority. The sole and
      exclusive remedy for a breach of the warranty against infringement contained
      in
      this Section 10.1 is infringement indemnity set forth in Section
      14.

    

    10.2  Personal
      Dealing and Non-Subornation.
      Licensor warrants that no officer, director, employee of Licensee, or any of
      their immediate family members, (i) has received or will receive anything of
      value of any kind from Licensor or its Personnel in connection with this
      Agreement, or (ii) has a business relationship of any kind with Licensor or
      its
      Personnel. Licensor further warrants that Licensor has not and will not make
      (or
      offer to make) any payments to, or confer (or offer to confer) any benefit
      upon,
      any employee, agent or fiduciary of any third party, with the intent to
      influence the conduct of such employee, agent or fiduciary in any manner
      relating to the subject of this Agreement.

    

    10.3 Conformity
      to Specifications. Licensor
      warrants that at the time of Delivery, and thereafter throughout the applicable
      warranty period, the Software will conform to [*]. If not specified by the
      Parties on the License Schedule, the warranty period for purposes of Software
      performance shall be the ninety (90) days period commencing from the date that
      the Software is Delivered In addition, the warranty period for the Software
      will
      be extended by the aggregate time Licensee is unable to effectively use the
      Software during the specified warranty period as a result of a Defect. If
      Licensor receives notice of a Software Defect during the warranty period, then
      Licensor will (at no additional charge) correct the Defect. If (through no
      fault
      of Licensee) Licensor is unable or unwilling to correct a Defect that has been
      identified by Licensee during the warranty period, then Licensee may terminate
      the applicable License Schedule (in whole or in part) upon notice to Licensor,
      without financial liability or obligation (for the portion terminated).

     

    10.4 Documentation.
      Licensor represents and warrants that the Documentation provided by Licensor
      will fully and accurately reflect the functionality of the applicable
      Software.

    

    10.5 Standard
      of Service. Licensor
      warrants that all services provided by Licensor pursuant to this Agreement
      will
      be performed in a timely and professional manner, in conformity with standards
      generally accepted in the Software industry, by qualified and skilled
      individuals. If Licensor fails to provide the services as warranted and Licensee
      so notifies Licensor within thirty (30) days after the date Licensor declares
      the services to have been completed, then Licensor will re-perform the services
      at no additional charge. Licensor further warrants that its Personnel will
      provide services with a minimal amount of interference to Licensee’s normal
      business operations and subject to Licensee’s security and work place policies
      and procedures. 

    

    10.6 Disabling
      Devices.
      Licensor represents and warrants that prior to Delivering the Software to
      Licensee, Licensor will test the Software and the media on which it is to be
      Delivered with a current version of a leading anti-virus application in efforts
      to detect, and if so detected, to eliminate, any computer code (sometimes
      referred to as “viruses” or “worms”) designed to damage, disrupt, disable, harm,
      or otherwise impede in any manner, the orderly operation of the Software or
      any
      other software, data files, firmware, hardware, computer system or network.
      Licensor further represents and warrants that the Software (and all other
      software Delivered or installed by Licensor) shall not contain any computer
      code
      or any other procedures, routines or mechanisms designed by Licensor (or its
      Personnel or licensors) to: (i) disrupt, disable, harm or impair in any way
      the
      Software’s (or any other software’s) orderly operation based on the elapsing of
      a period of time, exceeding an authorized number of copies, advancement to
      a
      particular date or other numeral (sometimes referred to as “time bombs”, “time
      locks”, or “drop dead” devices); (ii) cause the Software to damage or corrupt
      any of Licensee’s, its Affiliates’, or their respective customers’ data, storage
      media, programs, equipment or communications, or otherwise interfere with
      Licensee’s or its Affiliates’ operations, or (iii) permit Licensor, its
      Personnel, its licensors or any other third party, to access the Software (or
      any other software or Licensee’s or its Affiliates’ computer systems) for any
      reason (sometimes referred to as “traps”, “access codes” or “trap door”
devices). Licensor will not unilaterally (i.e.,
      without appropriate judicial order) remove, deinstall, repossess, modify,
      delete, damage, deactivate, disable, or interfere with the Software for any
      reason (including a dispute relating to this Agreement). 

    

    10.7 Availability
      of Maintenance.
      Reserved. 

    

    10.8 Favorable
      Provisions. Reserved.
      

    

    10.9 Disclaimer.
      EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS
      AGREEMENT OR ESTABLISHED BY APPLICABLE LAW AS RIGHTS THAT CAN NOT BE WAIVED
      OR
      LIMITED BY CONTRACT, LICENSOR DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES,
      INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
      PURPOSE. IN ADDITION, LICENSOR DOES NOT WARRANT THAT THE SOFTWARE WILL OPERATE
      IN COMBINATIONS OTHER THAN AS SPECIFIED IN (i) THE DOCUMENTATION, (ii) THE
      SPECIFICATIONS, OR (iii) THE LICENSE SCHEDULE, OR THAT THE OPERATION OF THE
      SOFTWARE WILL BE UNINTERRUPTED OR ERROR-FREE OR MEETS LICENSEE’S REQUIREMENTS.

    

    11. MAINTENANCE
      SERVICES

    

    For
      a minimum period of [*] years commencing from the date of Delivery of the
      Software, Licensor will make Maintenance Services available for the Software
      on
      terms at least as comprehensive as those set forth in Appendix
      B.
      The initial annual period for Maintenance Services shall commence on the date
      of
      Delivery of the Software. Except as may other be provided for in a License
      Schedule, the fee for annual Maintenance Services is due and payable upon the
      Delivery of the Software. Beginning on the first anniversary of the date of
      the
      Delivery of the Software, such Maintenance Services shall be provided on an
      automatic, annual renewable term basis, at Licensee’s election and subject to
      Licensee’s payment of the applicable Maintenance Services fee. Licensee will be
      entitled to terminate the Maintenance Services at any time, for its convenience,
      by providing Licensor with no less than ninety (90) days prior notice of
      termination; and in the event of such termination, Licensee shall be entitled
      to
      recover any unused portion of the pre-paid Maintenance Service fees, pro rated
      on a fiscal calendar quarterly basis. For the avoidance of doubt, nothing
      contained in this Section shall be construed to restrict Licensee’s right to
      access and use the Source Code pursuant to Subsection
      7.1.4
      in the event that Licensor refuses or becomes unable to provide maintenance
      and
      support services to Licensee for the Software during or after the [*] year
      period specified above. 

    

    

    12. CONFIDENTIAL
      INFORMATION 

    

    12.1 Licensor’s
      Confidential Information.
      Licensor’s “Confidential Information” means and refers to the Software,
      Documentation, and all other materials furnished by Licensor that are expressly
      identified or marked by Licensor as “confidential” at the time of their Delivery
      to Licensee. 

    

    12.2 Licensee’s
      “Confidential Information”.
      Licensee’s “Confidential Information” means and refers to all
      tangible or intangible information and materials, in any form or
      medium
      (and without regard to whether the information or materials are owned by
      Licensee or by a third party),
      whether furnished or disclosed to Licensor by Licensee or an Affiliate, or
      otherwise obtained, accessed or observed by Licensor from Licensee or an
      Affiliate, that satisfies
      at least one of the following criteria:

    

    
      	12.2.1  	
              Information
                or materials related to Licensee’s, an Affiliates’, or any of their
                respective customer’s business, trade secrets,
                customers (including identities, characteristics and activities),
                business
                plans, strategies, forecasts or forecast assumptions, operations,
                methods
                of doing business, records, finances, assets, technology (including
                software, data bases, data processing or communications networking
                systems), data or information or materials that reveal research,
                technology, practices, procedures, processes, methodologies, know
                how, or
                other systems or controls by which Licensee’s or an Affiliate’s products,
                services, applications and methods of operations or doing business
                are
                developed, conducted or operated, and all information or materials
                derived
                therefrom or based thereon;

            

    

    
      	12.2.2  	
              Information
                or materials designated or identified as confidential by Licensee
                or an
                Affiliate, whether by letter or by an appropriate proprietary stamp
                or
                legend, prior to or at the time such information or materials are
                disclosed by Licensee or an Affiliate to Licensor;
                

            

    

    
      	12.2.3  	
              Information
                disclosed orally or visually, or written or other form of tangible
                information or materials without an appropriate letter, proprietary
                stamp
                or legend, if it would be apparent to a reasonable person, familiar
                with
                Licensee’s (or the Affiliates’) business and the industry in which it
                operates, that such information or materials are of a confidential
                or
                proprietary nature; or, 

            

    

    
      	
              12.2.4

            	
              Any
                non-public, personal, financial or identifying information of an
                individual, including Licensee’s or an Affiliate’s customers or employees
                (“Nonpublic Personal Information”).

            

    

    

    12.3 Duty
      of Care.
      The Party receiving (“Receiving Party”) Confidential Information of the other
      Party (“Disclosing Party”) will exercise at least the same degree of care with
      respect to the Disclosing Party’s Confidential Information that the Receiving
      Party exercises to protect its own Confidential Information; and, at a minimum,
      the Receiving Party will maintain adequate security measures to safeguard the
      Disclosing Party’s Confidential Information from unauthorized disclosure,
      access, use and misappropriation. Without limiting the generality of the
      foregoing, the Receiving Party will only use or reproduce the Disclosing Party’s
      Confidential Information to the extent necessary to enable the Receiving Party
      to fulfill its obligations under this Agreement, or in the case of Licensee,
      to
      exercise its rights as contemplated by this Agreement. In addition, the
      Receiving Party will disclose the Disclosing Party’s Confidential Information
      only to those of the Receiving Party’s (or in the case of Licensee, also to its
      Affiliates’) Personnel who have a “need to know” such Confidential Information
      (and only to the extent necessary) in order to fulfill the purposes contemplated
      by the Agreement. Prior to disclosing Licensee’s Confidential Information to any
      of its Personnel, Licensor will ensure that each of its Personnel who will
      be
      providing services for Licensee is bound by a written non-disclosure agreement
      with terms and conditions no less restrictive than those set forth herein.
      If
      the Receiving Party becomes aware of any threatened or actual unauthorized
      access to, use or disclosure of, or any inability to account for, the Disclosing
      Party’s Confidential Information, the Receiving Party will promptly notify the
      Disclosing Party thereof and will assist the Disclosing Party with its efforts
      to terminate such access, to curtail such threatened or actual unauthorized
      use
      or disclosure, or to recover such information or materials. The Receiving Party
      will be liable to the Disclosing Party for any non-compliance by its agents
      or
      contractors to the same extent it would be liable for non-compliance by its
      employees.

    

    12.4 Exclusions.
      The
      obligations of confidentiality assumed under this Agreement shall not apply
      to
      the extent the Receiving Party can demonstrate, by clear and convincing
      evidence, that such information:

    

    
      	12.4.1  	
              is
                or has become generally available to the public, without any breach
                by the
                Receiving Party of the provisions of this Agreement or any other
                applicable agreement between the Parties; 

            

    

    
      	12.4.2  	
              was
                rightfully in the possession of the Receiving Party, without
                confidentiality restrictions, prior to such Party’s receipt pursuant to
                this Agreement;

            

    

    
      	12.4.3  	
              was
                rightfully acquired by the Receiving Party from a third party who
                was
                entitled to disclose such information, without confidentiality or
                proprietary restrictions;

            

    

    
      	12.4.4  	
              was
                independently developed by the Receiving Party without using or referring
                to the Disclosing Party’s Confidential Information;
                or,

            

    

    
      	12.4.5  	
              is
                subject to a written agreement pursuant to which the Disclosing Party
                authorized the Receiving Party to disclose the subject
                information.

            

    

    

    12.5 Legally
      Required Disclosures. The
      obligations of confidentiality assumed under this Agreement shall not apply
      to
      the extent that the Receiving Party is required to disclose the Disclosing
      Party’s Confidential Information under
      any applicable law, regulation or an order
      from a court, regulatory agency or other governmental authority having competent
      jurisdiction,
      provided that the Receiving Party:

    

    
      	12.5.1  	
              promptly
                notifies the Disclosing Party of the order in order to provide the
                Disclosing Party an opportunity to seek a protective order;
                

            

    

    
      	12.5.2  	
              provides
                the Disclosing Party with reasonable cooperation in its efforts to
                resist
                the disclosure, upon reasonable request by the Disclosing Party and
                at the
                Disclosing Party’s expense; and,

            

    

    
      	12.5.3  	
              disclose
                only the portion of the Disclosing Party’s Confidential Information that
                is required to be disclosed under such law, regulation or
                order.

            

    

    

    12.6 Nonpublic
      Personal Information.
      Notwithstanding any other provision of this Agreement, to the extent Nonpublic
      Personal Information is, either intentionally or unintention-ally, disclosed
      to
      or otherwise obtained by Licensor in connection with the matters contemplated
      by
      this Agreement, Licensor will keep such Nonpublic Personal Information strictly
      confidential and strictly limit its use of such information to the purposes
      contemplated by this Agreement. Licensor agrees that Licensee shall have the
      right to conduct a review of the procedures used by Licensor to maintain the
      confidentiality of such Nonpublic Personal Information.

    

    12.7 Accounting
      for Confidential Information.
      Except as otherwise expressly provided in this Agreement, upon the request
      of
      the Disclosing Party at any time after the termination of this Agreement, the
      Receiving Party will return (or purge its systems and files of, and suitably
      account for) all tangible Confidential Information supplied to, or otherwise
      obtained by, the Receiving Party in connection with this Agreement. The
      Receiving Party will certify in writing that it has fully complied with its
      obligations under this Section within seven (7) days after its receipt of a
      request by the Disclosing Party for such a certification. For the avoidance
      of
      doubt, this Section
      12.7
      shall not be construed (i) to require Licensee to return the Software or (ii)
      to
      limit either Party’s right to seek relief from damages that are caused by the
      other Party’s default.

    

    13. PUBLICITY

    

    Licensor
      will not disclose the identity of Licensee as a customer of Licensor or the
      existence, nature or terms of this Master Agreement or any License Schedule,
      without the prior written consent of Licensee, which Licensee may withhold
      in
      its sole discretion; except as required by applicable law or regulation. Neither
      Party will use the other Party’s proprietary indicia, trademarks, service marks,
      trade names, logos, symbols or brand names (collectively “Marks”), or otherwise
      refer to or identify the other Party in advertising, publicity releases, or
      promotional or marketing publications or correspondence to third parties
      without, in each case, securing the prior written consent of the other
      Party.

    

    14. INDEMNITY

    

    14.1  Infringement
      Indemnity.
      Licensor will defend, hold harmless and indemnify Licensee, its Affiliates,
      and
      their Personnel (collectively the “Indemnitees”) from and against any and all
      losses, claims, liabilities, costs and expenses (including taxes, fees, fines,
      penalties, interest, reasonable expenses of investigation and attorneys' fees
      and disbursements) as incurred (collectively "Damages") arising out of, or
      relating to a claim by a third party that the Software or any other materials
      of
      any nature furnished by Licensor to Licensee (or that the use thereof) infringes
      (whether directly, contributorily, by inducement or otherwise), misappropriates
      or violates such third party's Intellectual Property Rights. Licensor’s
      indemnity obligation under this Section shall not extend to claims based on:
      (i)
      an unauthorized modification of the Software made by an Indemnitee where the
      Software would not be infringing without such modification, (ii) customized
      portions of the Software designed in accordance with written specifications
      provided by Licensee where the Software would not be infringing without such
      customized portions or (iii) Licensee’s continued use of allegedly infringing
      Software where Licensor has provided Licensee with an updated, non-infringing,
      equally suitable, functionally equivalent and compatible version of the
      Software. 

    

    14.2 General
      Indemnity.
      Licensor will defend, hold harmless and indemnify the Indemnitees from and
      against any and all third-party claims for Damages arising out of or relating
      to
      Licensor’s breach of the obligations assumed under, or the representations or
      warranties provided in, (a) Section
      10.6 or (b)
      Section 12 of
      this Agreement.

    

    14.3 Indemnification
      Procedures. If
      an Indemnitee seeks indemnification under this Agreement, the Indemnitee will:
      (i) give prompt notice to Licensor concerning the existence of the indemnifiable
      event; (ii) grant authority to Licensor to defend or settle any related action
      or claim; and, (iii) provide, at Licensor’s expense, such information,
      cooperation and assistance to Licensor as may be reasonably necessary for
      Licensor to defend or settle the claim or action. An Indemnitee’s failure to
      give prompt notice shall not constitute a waiver of the Indemnitee’s right to
      indemnification and shall affect Licensor’s indemnification obligations only to
      the extent that Licensor’s rights are materially prejudiced by such failure or
      delay. Notwithstanding anything to the contrary set forth herein, (i) an
      Indemnitee may participate, at its own expense, in any defense and settlement
      directly or through counsel of its choice, and (ii) Licensor will not enter
      into
      any settlement agreement on terms that would diminish the rights provided to
      the
      Indemnitee or increase the obligations assumed by the Indemnitee under this
      Agreement, without the prior written consent of the Indemnitee. If Licensor
      elects not to defend any claim as is required under this Agreement, the
      Indemnitee will have the right to defend or settle the claim as it may deem
      appropriate, at the cost and expense of Licensor, and Licensor will promptly
      reimburse the Indemnitee for all costs, expenses, settlement amounts and other
      Damages.

    

    14.4 Mitigation
      of Damages.
      If any Software becomes, or (in Licensor's opinion) is likely to become, the
      subject of any such third party claim, then Licensor (at its sole cost and
      expense) may either: (i) procure the right for the Indemnitee to continue using
      the Software as contemplated hereunder; (ii) modify the Software to render
      it
      non-infringing (provided such modification does not materially degrade the
      Software’s functionality); or (iii) replace the Software with equally suitable,
      functionally equivalent, compatible, non-infringing Software. If none of the
      foregoing are commercially practicable despite Licensor using all reasonable
      efforts and if Licensee is not permitted to continue using the Software, then
      Licensee shall be entitled to recover from Licensor the following. If Licensee
      is prohibited from using the Software [*] then Licensee shall be entitled to
      recover an amount equal to a pro-rated portion of the License fees paid for
      the
      Software, [*] (with the pro-rated portion equal to the remaining book value
      based on a straight line five (5) year basis).

    

    14.5 Notification
      of 3rd
      Party Claims.
      Licensor will promptly notify Licensee concerning any threat, warning, claim
      or
      action against Licensor or its customers or suppliers of which Licensor has
      knowledge, that could have an adverse impact on Licensee's use of any Software
      provided or made available to Licensee pursuant to this Agreement.

    

    15. INSURANCE
      REQUIREMENTS

    

    15.1 Required
      Coverage.
      During the term of this Agreement and for so long as any License Schedule has
      not yet been completed or terminated, Licensor will maintain, at its own
      expense, insurance coverage with limits of no less than those set forth below,
      and with insurers with a minimum A.M. Best Financial Strength rating of “A-
      (Excellent)” and Financial Size rating of “X”, or equivalent ratings from other
      valid rating agencies and under forms of policies satisfactory to
      Licensee.

    

    
      	15.1.1  	
              Professional
                Liability Insurance (“Errors and Omissions”) in the minimum amount of
                $2,000,000 per occurrence, covering losses from any act, errors,
                omissions, negligence, breach of contract and/or misrepresentations
                related to Licensor’s obligations under this Agreement. This insurance
                shall be maintained for a period of at least two (2) years after
                completion of all License
                Schedules.

            

    

    
      	15.1.2  	
              Fidelity/Crime
                Insurance in the minimum amount of $2,000,000 per occurrence providing
                coverage for any loss sustained by Licensee or an Affiliate as a
                result of
                any dishonest act by Licensor’s officers, employees, agents or
                subcontractors (whether acting alone or in collusion with others),
                including but not limited to theft, forgery, alteration, or transfer
                of
                funds (electronically or otherwise). Such insurance must cover (i)
                property of the Licensor; (ii) property of others, which the Licensor
                holds in its care, custody and control; and (iii) property of others
                for
                which the Licensor is legally
                liable.

            

    

    
      	15.1.3  	
              Commercial
                General Liability including broad form contractual liability and
                personal
                injury endorsement, providing coverage against liability for bodily
                injury, death, and property damages in the minimum amount of $1,000,000
                per occurrence and no less than $2,000,000 annual
                aggregate.

            

    

    
      	15.1.4  	
              Automobile
                Liability in the minimum amount of $1,000,000 Combined Single Limit
                (“CSL”) per occurrence for bodily injury and property damage (covering
                owned, non-owned and hired vehicles).

            

    

    
      	15.1.5  	
              Workers
                Compensation insurance covering Licensor’s employees pursuant to
                applicable state laws and at the statutory limits required for each
                such
                state, and Employers Liability coverage in the minimum amount of
                $1,000,000 per loss.

            

    

    
      	15.1.6  	
              Umbrella/Excess
                Liability providing excess liability coverage in the minimum amount
                of
                $5,000,000 per occurrence, to supplement the primary coverage limits
                for
                Commercial General Liability, Automobile Liability and Employers
                Liability
                provided under the policies listed
                above.

            

    

    

    15.2  Certificates
      of Insurance.
      Licensor will Deliver Certificates of Insurance to Licensee prior to the
      execution of this Agreement. Said certificate shall indicate that policies
      providing coverage and limits of insurance are in full force and effect. Each
      Certificate shall provide that no less than thirty (30) days notice will be
      given in writing to Licensee prior to cancellation, termination, or material
      alteration of any one of the policies. At least ten (10) days before the
      expiration of an insurance policy required hereunder, Licensor will Deliver
      to
      Licensee a certificate of insurance attesting to the renewal of such insurance.
      In addition, each policy required pursuant to Subsections
      15.1.3, 15.1.4, 15.1.5
      (Employers Liability only) and 15.1.6
      shall name Licensee, Affiliates and assignees as additional insureds. Each
      policy required pursuant to Subsection
      15.1.2
      shall name Licensee, Affiliates and assignees as loss payees. Licensee’s
      acceptance of Delivery of a Certificate of Insurance that does not conform
      to
      the requirements of this Section shall not relieve Licensor of its obligation
      to
      provide insurance conforming to the requirements hereof. 

    

    15.3 No
      Limitation.
      The requirements set forth above as to types, limits and approval of insurance
      coverage to be maintained by Licensor will not in any manner limit the
      liabilities and obligations assumed by Licensor under this
      Agreement.

    

    16. LIMITATION
      OF LIABILITY 

    

    EXCEPT
      TO THE EXTENT OTHERWISE EXPRESSLY PROVIDED IN THIS SECTION, NEITHER PARTY WILL
      BE LIABLE TO THE OTHER PARTY (OR TO ANY PERSON OR ENTITY CLAIMING THROUGH THE
      OTHER PARTY) FOR LOST PROFITS OR FOR SPECIAL, INCIDENTAL, INDIRECT,
      CONSEQUENTIAL OR EXEMPLARY DAMAGES ARISING OUT OF OR IN ANY MANNER CONNECTED
      WITH THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, REGARDLESS OF THE FORM OF
      ACTION AND WHETHER OR NOT SUCH PARTY HAS BEEN INFORMED OF, OR OTHERWISE MIGHT
      HAVE ANTICIPATED, THE POSSIBILITY OF SUCH DAMAGES.  NEITHER PARTY SHALL BE
      LIABLE FOR ANY (i) DIRECT DAMAGES IN EXCESS OF THE TOTAL AMOUNT OF FEES PAID
      TO
      LICENSOR UNDER THIS AGREEMENT OR (ii) DAMAGES ARISING FROM CLAIMS FOR WHICH
      EITHER PARTY HAS AGREED TO INDEMNIFY THE OTHER PARTY PURSUANT TO SECTION 14.2(b)
      IN EXCESS OF THE TOTAL AMOUNT OF FEES PAID TO LICENSOR UNDER THIS AGREEMENT.
      THE
      LIMITATIONS OF LIABILITY SET FORTH IN THIS AGREEMENT SHALL NOT APPLY TO DAMAGES,
      (i) RESULTING FROM THE GROSS NEGLIGENCE, BAD FAITH OR WILLFUL MISCONDUCT OF
      A
      PARTY OR ITS PERSONNEL, (ii) STEMMING FROM PERSONAL INJURY, DEATH, OR PROPERTY
      DAMAGE CAUSED BY A PARTY OR ITS PERSONNEL, OR (iii) ARISING FROM CLAIMS FOR
      WHICH EITHER PARTY HAS AGREED TO INDEMNIFY THE OTHER PARTY PURSUANT TO SECTIONS
      14.1 or 14.2(a) ABOVE, OR (iv) ARISING FROM EITHER PARTY’S BREACH OF ITS
      OBLIGATIONS SET FORTH IN SECTIONS 10.6 AND 12 HEREIN. 

    

    17.  SUBCONTRACTORS
      

    

    Licensor
      will not use a subcontractor to perform Licensor’s obligations under this
      Agreement without obtaining Licensee’s prior written approval, which will not be
      unreasonably withheld or delayed. Licensee’s approval of a subcontractor shall
      not constitute a waiver of any rights Licensee may have based on Licensor’s
      representations and warranties. Licensor will be fully responsible for all
      acts
      and omissions of its subcontractors. Nothing in this Agreement shall be
      construed to create any contractual relationship between Licensee and any
      subcontractor, nor any obligation on the part of Licensee, to pay or to ensure
      the payment of any money due any subcontractor.

    

    

    18.  ASSIGNMENT
      

    

    Either
      party may, with notice to the other party, assign this Agreement or any of
      its
      rights or interests hereunder, or delegate any of its obligations hereunder,
      to
      (i) an Affiliate, (ii) the assigning party's successor pursuant to a merger,
      reorganization, consolidation or sale, or (iii) an entity that acquires all
      or
      substantially all of that portion of the assigning party’s assets or business.
      Except as otherwise provided above, neither Party may assign this Agreement
      nor
      any of its rights or interests hereunder, nor delegate any obligation to be
      performed hereunder, without the prior written consent of the other Party.
      Any
      attempted assignment or delegation in contravention of this Section shall be
      null and void, and of no force or effect. This Agreement shall be binding upon,
      and shall inure to the benefit of, the legal successors and permitted assigns
      of
      the Parties.

    

    19. NOTICES

    

    Any
      notice, demand or other communication (collectively “notice”) required or
      permitted under this Agreement shall be made in writing and shall be deemed
      to
      have been duly given (i) when Delivered personally to the representative(s)
      designated to receive notices for the intended recipient, or (ii) when mailed
      by
      certified mail (return receipt requested) or sent by overnight courier to the
      representative(s) designated to receive notices for the intended recipient
      at
      the address set forth in the introductory paragraph of this Master Agreement
      or
      in the applicable License Schedule, as appropriate. Notices concerning the
      Master Agreement shall be given to the person who signed the Master Agreement
      on
      behalf of the intended recipient. Notices concerning a License Schedule shall
      be
      given to the person designated on, or (if no designation is made) the person
      signing, the License Schedule on behalf of the intended recipient. Any notice
      from Licensor that either (i) relates to the Master Agreement, or (ii) alleges
      Licensee committed a material breach shall also be sent to Licensee’s General
      Counsel’s Office, to the attention of the managing attorney responsible for
      intellectual property and technology. Either Party may change its address(es)
      or
      representative(s) for receiving notices upon notice to the other. 

    

    
      	
              20.

            	
              COMPLIANCE
                WITH LAW 

            

    

    
      	 	 

    

    20.1  General.
      In performing its obligations under this Agreement, Licensor will comply, and
      will cause its Personnel to comply, with the requirements of all applicable
      laws, ordinances, regulations, codes and executive orders. 

    

    20.2  Export
      Controls.
      Without limiting the generality of Section
      20.1,
      each Party specifically agrees to comply, and will cause its Personnel to
      comply, with the requirements of all applicable export laws and regulations,
      including but not limited to the U.S. Export Administration Regulations. Unless
      authorized by U.S. regulation or Export License, neither Party will export
      nor
      reexport, directly or indirectly, any software or technology received from
      the
      other party, or allow the direct product thereof to be exported or reexported,
      directly or indirectly, to (a) any country in Country Group E:2 of the Export
      Administration Regulations of the Department of Commerce (see
      http://www.bxa.doc.gov) or any other country subject to sanctions administered
      by the Office of Foreign Assets Control (see http://www.treas.gov/ofac/); or
      (b)
      any non-civil (i.e. military) end-users or for any non-civil end-uses in any
      country in Country Group D:1 of the Export Administration Regulations, as
      revised from time to time. Each Party understands that countries other than
      the
      U.S. may restrict the import or use of strong encryption products and may
      restrict exports, and each Party agrees that it shall be solely responsible
      for
      compliance with any such import or use restriction. 

    

    20.3 Rights
      in Bankruptcy.
      All rights and licenses granted under or pursuant to any section of this
      Agreement are, and shall be deemed to be, for purposes of Section 365(n) of
      the
      Bankruptcy Code, 11 U.S.C. § 101 et seq., licenses of rights to "intellectual
      property" as defined under Section 101(35A) of the Bankruptcy Code; and Software
      is, and shall be deemed to be, "embodiment[s]" of "intellectual property" for
      purposes of same. Licensee shall retain and may fully exercise all of its rights
      and elections under the Bankruptcy Code or equivalent legislation in any other
      jurisdiction. Without limiting the generality of the foregoing, Licensor
      acknowledges that the rights and license granted to Licensee pursuant to this
      Agreement shall not be affected by Licensor's rejection of this Agreement in
      bankruptcy, and shall continue subject to the terms and conditions of this
      Agreement. 

    

    21.  CHOICE
      OF LAW, JURISDICTION AND WAIVER OF JURY TRIAL

    

    21.1  Governing
      Law.
      The substantive laws of the State of New York shall in all respects govern
      this
      Agreement as though this Agreement was entered into, and was to be entirely
      performed within, the State of New York. The Parties expressly disclaim the
      applicability of, and waive any rights based upon, the Uniform Computer
      Information Transactions Act or the United Nations Convention on the Sale of
      Goods. For the avoidance of doubt, nothing stated in this Agreement will
      prejudice or limit the rights or remedies of either Party to enforce any award
      or decree under the laws of any jurisdiction where property or assets of the
      other Party may be located. 

    

    21.2  Jurisdiction.
      All claims or disputes arising out of or in connection with this Agreement
      shall
      be heard exclusively by any of the federal or state court(s) of competent
      jurisdiction located in the Borough of Manhattan, New York City, NY, USA. To
      that end, each Party irrevocably consents to the exclusive jurisdiction of,
      and
      venue in, such court(s), and waives any, (i) objection it may have to any
      proceedings brought in any such court, (ii) claim that the proceedings have
      been
      brought in an inconvenient forum, and (iii) right to object (with respect to
      such proceedings) that such court does not have jurisdiction over such Party.
      Without limiting the generality of the foregoing, Licensor specifically and
      irrevocably consents to personal and subject matter jurisdiction for such claims
      or disputes in the federal or state courts sitting in New York City, NY, USA,
      and to the service of process in connection with any such claim or dispute
      by
      the mailing thereof by registered or certified mail, postage prepaid to
      Licensor, at the address for notice set forth in, or designated pursuant to,
      this Agreement.

    

    21.3 WAIVER
      OF JURY TRIAL.
      LICENSOR AND LICENSEE HEREBY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY
      PROCEEDING OR LITIGATION BROUGHT AGAINST THE OTHER WITH RESPECT TO THIS
      AGREEMENT OR VENDOR'S PERFORMANCE OF SERVICES.

    

    22.  REMEDIES

    

    22.1 Equitable
      Relief.
      Licensor and Licensee each acknowledge that the failure to perform their
      respective duties under Sections
      12 or
      13 may
      cause the other Party to suffer irreparable injury for which such injured Party
      will not have an adequate remedy available at law. Accordingly, the injured
      Party may seek to obtain injunctive or other equitable relief to prevent or
      curtail any such breach, threatened or actual, without posting a bond or
      security and without prejudice to such other rights as may be available under
      this Agreement or under applicable law. For purposes of this Agreement,
      "equitable relief" means and includes those remedies traditionally and
      historically granted by courts of equity, including without limitation,
      injunction, attachment, declaratory relief, lis pendens, receivership and
      replevin.

    

    22.2 Recovery
      of Fees.
      If Licensee terminates a License Schedule pursuant to Section
      5.2 or Section 10.3,
      then Licensee will be entitled to recover from Licensor [*]. Upon Licensee’s
      receipt of such amounts, Licensee will return to Licensor the affected
      Software.

    

    22.3 Cumulative
      Remedies and Off Sets.
      Except as otherwise expressly provided in this Agreement, all remedies in this
      Agreement are cumulative and in addition to (not in lieu of) any other remedies
      available to a Party at law or in equity. In the event of a claim by Licensee
      for loss or damages for which Licensor is responsible, Licensee shall be
      entitled to adjust the amounts claimed against future or outstanding payments
      due, or which may become due, to Licensor.

    

    23. WAIVER
      

    

    No
      course of dealing, failure by either Party to require the strict performance
      of
      any obligation assumed by the other hereunder, or failure by either Party to
      exercise any right or remedy to which it is entitled, shall constitute a waiver
      or cause a diminution of the obligations or rights provided under this
      Agreement. No provision of this Agreement shall be deemed to have been waived
      by
      any act or knowledge of either Party, but only by a written instrument signed
      by
      a duly authorized representative of the Party to be bound thereby. Waiver by
      either Party of any default shall not constitute a waiver of any other or
      subsequent default.

    

    24. FORCE
      MAJEURE 

    

    A
      Party will be excused from a delay in performing, or a failure to perform,
      its
      obligations under this Agreement to the extent such delay or failure is caused
      by the occurrence of any contingency beyond the reasonable control, and without
      any fault, of such Party. In such event, the performance times shall be extended
      for a period of time equivalent to the time lost because of the excusable delay.
      However, if an excusable delay continues more than sixty (60) days, the Party
      not relying on the excusable delay may, at its option, terminate the affected
      License Schedule(s) in whole or in part, upon notice to the other Party. In
      order to avail itself of the relief provided in this Section for an excusable
      delay, the Party must act with due diligence to remedy the cause of, or to
      mitigate or overcome, such delay or failure. For purposes of this Section,
      the
      phrase “due diligence” shall, at a minimum, require Licensor to maintain a
      contingency plan (and provide evidence of its current and periodic testing
      if
      requested by Licensee) for the continuation of business so that despite any
      disruption in Licensor’s ability to fulfill its service obligations from any
      particular location or through the efforts of any particular individuals,
      Licensor will be able to fulfil its service obligations from an
      alternative/backup location.

    

    
      	
              25.

            	
              LICENSEE’S
                POLICIES AND PROCEDURES

            

    

    

    25.1 General.
      Licensor will ensure: (i) that its Personnel comply with the corporate policies
      promulgated by Licensee or an Affiliate that are designed to adhere to
      applicable laws and regulations, and with the security and work place policies
      and procedures in effect for any facility of Licensee or an Affiliate where
      services are performed (including Information Security Standards and any
      supplementary practices or procedures provided by Licensee to Licensor), and
      (ii) that all services are performed in a manner that will minimize any
      interference with Licensee’s normal business operations. 

    

    25.2 Equipment
      and Network Security.
      If access to Licensee’s or an Affiliate’s computer systems, other equipment or
      personal property (“Licensee’s Systems”) is required in order for Licensor to
      fulfill its services obligations to Licensee, then Licensee shall determine
      the
      nature and extent of such access. If Licensee or an Affiliate provides Licensor
      with remote access to Licensee’s Systems, then any and all information relating
      to such remote access shall be considered Licensee’s Confidential Information
      and shall be subject to the obligations of confidentiality set forth in
Section
      12
      above. In addition, any and all access to Licensee’s Systems shall be subject to
      the following. 

    

    
      	
              25.2.1

            	
              Licensee’s
                Systems shall be used solely to perform services for Licensee, and
                shall
                not be used for any purpose other than the legitimate business purposes
                of
                Licensee.

            

    

    
      	25.2.2  	
              Access
                to Licensee’s Systems shall be restricted to Licensor’s Personnel who need
                access in order for Licensor to fulfill its obligations under this
                Agreement; and no access rights will be transferred to any other
                individuals without the prior written consent of Licensee.
                

            

    

    
      	25.2.3  	
              Licensor
                will ensure that its Personnel do not attempt to break, bypass or
                circumvent Licensee’s or an Affiliate’s security systems, or attempt to
                obtain access to any hardware, programs or data beyond the scope
                of the
                access granted by Licensee in writing.

            

    

    
      	
              25.2.4

            	
              Without
                limiting any of its other rights, Licensee reserves (for itself and
                its
                Affiliates) the rights to restrict and monitor the use of Licensee’s
                Systems, and to access, seize, copy and disclose any information,
                data or
                files developed, processed, transmitted, displayed, reproduced or
                otherwise accessed in conjunction with such use. Licensee or an Affiliate
                may exercise its rights reserved hereunder: (i) to verify the performance
                of services; (ii) to assure compliance by Licensor’s Personnel with
                Licensee’s or an Affiliate’s policies and procedures; (iii) to investigate
                conduct that may be illegal or may adversely affect Licensee, an
                Affiliate
                or its or their employees; or (iv) to prevent inappropriate or excessive
                personal use of Licensee’s Systems. Licensor will advise its Personnel
                concerning Licensee’s rights
                hereunder.

            

    

     

    25.3 Removal
      of Licensor’s Personnel. If
      any of Licensor’s Personnel fails to comply with any applicable laws,
      ordinances, regulations, codes, or with Licensee’s security or work place
      policies and procedures (whether or not specified herein), or fails (in
      Licensee’s sole determination) to perform assignments in a professional and
      competent manner, then Licensor will bar such individual from performing any
      services for Licensee immediately upon receiving a request from
      Licensee.

    

    25.4 Diversity
      Initiative.
      Licensor acknowledges that Licensee has implemented a Supplier Diversity Program
      which, among other initiatives, encourages the use of minority and women-owned
      (“Diverse Suppliers”) businesses as suppliers and subcontractors to the fullest
      extent possible consistent with the efficient performance of its business
      strategies. To assist Licensee in complying with these goals, if Licensor
      currently provides any reports tracking its use of Diverse Suppliers in the
      provision of products, goods or services, to any other of its customers, then
      Licensor will provide (at no additional cost to Licensee) copies of such
      reports, whenever they are prepared and updated, to Licensee. Licensee shall
      keep and treat such reports in accordance with the Licensee’s confidentiality
      obligations herein. These reports should be forwarded to the attention of the
      Citigroup Supplier Diversity Program, 333 West 34th Street, New York, NY 10001,
      attention Director, Supplier Diversity Program.

    

    26. CONSTRUCTION

    

    26.1 Inconsistencies.
      In the event of any inconsistency between the provisions of this Master
      Agreement and any License Schedule, the provisions of the License Schedule
      shall
      govern for purposes of such License Schedule. The provisions of this Master
      Agreement and the applicable License Schedule shall supersede the provisions
      of
      any shrink-wrap, clickwrap or other license provisions included with the
      Software. 

    

    26.2 Modification.
      The terms, conditions, covenants and other provisions of this Agreement may
      hereafter be modified, amended, supplemented or otherwise changed only by a
      written instrument (excluding e-mail or similar electronic transmissions) that
      specifically purports to do so and is physically executed by a duly authorized
      representative of each Party.

    

    26.3 Severability.
      If a court of competent jurisdiction declares any provision of this Agreement
      to
      be invalid, unlawful or unenforceable as drafted, the Parties intend that such
      provision be amended and construed in a manner designed to effectuate the
      purposes of the provision to the fullest extent permitted by law. If such
      provision can not be so amended and construed, it shall be severed, and the
      remaining provisions shall remain unimpaired and in full force and effect to
      the
      fullest extent permitted by law. 

    

    26.4 Survival.
      The provisions of this Agreement that, by their nature and content, must survive
      the completion, rescission, termination or expiration of this Agreement in
      order
      to achieve the fundamental purposes of this Agreement, shall so survive and
      continue to bind the Parties. Without limiting the generality of the forgoing,
      the Parties specifically acknowledge that the following provisions shall survive
      and continue to bind the Parties: Subsection
      2.3,
      entitled “Orderly Transfer”;
      Subsection 2.4,
      entitled “Retention of Archival Copy”;
      Section 6,
      entitled “Scope of License” (to the extent applicable);
      Section 7,
      entitled “Source Code”;
      Subsection 10.1,
      entitled “Authority and Non-Infringement”;
      Subsection 10.6,
      entitled “Disabling Devices”;
      Section 12,
      entitled “Confidential Information”;
      Section 13,
      entitled “Publicity”,
      Subsection 14,
      entitled “Indemnity”; Section
      16,
      entitled “Limitation of Liability”;
      Section 18,
      entitled “Assignment”;
      Section 21,
      entitled “Choice of Law and Jurisdiction”; and
      Section 22,
      entitled “Remedies”.

    

    26.5 Counterparts.
      This Agreement may be executed in counterparts, each of which shall be deemed
      to
      be an original.

    

    27. AUDITED
      FINANCIAL STATEMENTS 

    

    Upon
      Licensee’s request, Licensor will provide a completed audited statement of the
      financial condition of Licensor’s organization, including (i) audited year-end
      results for the three (3) previous years, including revenues, expenses, net
      income, total assets, liabilities and footnotes; and (ii) the most recent
      financial interim statement.

    

    28. COMPLETE
      UNDERSTANDING

    

    This
      Agreement (together with the schedules, exhibits, and other appendices attached
      hereto or specifically incorporated herein by reference) constitutes the
      complete understanding of the Parties, and supersedes all prior or
      contemporaneous agreements, discussions, negotiations, promises, proposals,
      representations, and understandings (whether written or oral) between the
      Parties, with regard to the subject matter hereof. Licensor specifically
      acknowledges and agrees that it did not enter into this Agreement in reliance
      upon any agreement, promise, representation, or understanding made by or on
      behalf of Licensee that is not contained herein.

    

    IN
      WITNESS WHEREOF,
      the Parties hereto, through their duly authorized officers, have executed this
      Master Software License and Support Agreement as of the Commencement Date
      designated above.

    

    
      	
              LICENSOR:

            	 	
              LICENSEE:

            
	 	 	 	 	 
	
              By:

            	
              /s/
                Robert Mullen

            	 	
              By:

            	
              /s/
                Mitchell J. Habib

            
	 	 	 	 	 
	
              Name:

            	
              Robert
                Mullen

            	 	
              Name:

            	
              Mitchell
                J. Habib

            
	 	 	 	 	 
	
              Title:

            	
              President

            	 	
              Title:

            	
              CIO/
                Card Technologies

            
	 	 	 	 	 
	
              Date:

            	
              March
                21, 2006

            	 	
              Date:

            	
              March
                20, 2006

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      A 

    LICENSE
      SCHEDULE 

    

    
      	
              License
                Schedule #:

            	 
	
              Effective
                Date:

            	 

    

    

    

    THIS
      LICENSE SCHEDULE is
      entered as of the Effective Date designated above, by and between Licensor
      and
      the Licensee designated below. The Parties hereto acknowledge that they are
      entering into this License Schedule pursuant to the provisions of the Master
      Software License and Support Agreement dated as of __________________, between
      Licensor and CITIGROUP
      ENTITY THAT SIGNED MASTER.
      The
      Parties further acknowledge and agree that the provisions of the Master Software
      License and Support Agreement shall apply to this License Schedule as though
      such provisions were set forth herein in their entirety. 

     

    
      	 	
              LICENSOR

            	
              LICENSEE

            
	
              Name:

            	 	 
	
              Address:

            	 	 
	
              State
                of Incorporation:

            	 	 

    

    

    

    
      	
              Software
                (Itemize)

            	
              List
                Price

            	
              Discount
                %

            	
              License
                Fee

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    
      	
              Third-Party
                Software (Itemize)

            	
              Owner

            
	 	 
	 	 

    

    

    
      	
              Delivery
                Site:

            	 	
              Delivery
                Date:

            	 
	 
	
              Installation
                Site:

            	 	
              Installation
                Date:

            	 
	 
	
              Billing
                Address

            	 

    

    

    
      	
              Installation
                Fees:

            	
              $

            	 
	 
	
              Training
                Fees:

            	
              $

            	 
	 
	
              Development
                Fees:

            	
              $

            	 
	 
	
              Implementation
                Fees:

            	
              $

            	 
	 
	
              Maintenance
                Fees:

            	
              $

            	 	
              Payment
                Cycle
                (select one):

            	
              Annually

            	 
	 	 	
              Quarterly

            	 
	
              Maintenance
                Term:

            	 	 	
              Monthly

            	 

    

    

    

    

    
      	
              CPU
                and/or number of MIPS and MIPS environment:

            	 
	 
	
              [*]

            	 
	 
	
              Warranty
                Period:

            	 

    

    

    
      	
              Source
                Code Provided Directly to Licensee:

            	
              Yes

            	
              No

            
	 
	
              Deposited
                with Escrow Agent:

            	
              Yes

            	
              No

            
	 
	
              Name
                of Escrow Agent:

            	 
	 
	
              Address
                of Escrow Agent:

            	 

    

    

    
      	
              Additional
                Terms and Conditions:

            
	 
	 

    

    

    Specifications:
      Attached as Annex
      1
      to this License Schedule

    

    Allowed
      Combinations:
      Attached as Annex
      2
      to this Licensee Schedule

    

    [*]

    [*]

    [*]

    Escrow
      Agreement
      (attached as Exhibit
      1
      to this License Schedule, if applicable)

    

    

    IN
      WITNESS WHEREOF,
      the Parties hereto, through their duly authorized officers, have executed this
      License Schedule to the Master Software License and Support Agreement as of
      the
      Effective Date designated above.

    

    

    
      	
              LICENSOR:

            	 	
              LICENSEE:

            
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	 	 	 	 	 
	
              Name:

            	 	 	
              Name:

            	 
	 	 	 	 	 
	
              Title:

            	 	 	
              Title:

            	 
	 	
              (type
                or print)

            	 	 	 
	
              Date:

            	 	 	
              Date:

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     APPENDIX
      B

    MAINTENANCE
      SERVICES ADDENDUM

    

    
      	
              Commencement
                Date:

            	 

    

    

    
      	
              Party:

            	
              LICENSOR

            	
              LICENSEE

            
	
              Name:

            	 	 

    

    

    THIS
      MAINTENANCE SERVICES ADDENDUM
      is attached to and made a part of Master Software License and Support Agreement
      entered into as of the Commencement Date designated above, by and between the
      Parties designated above.

    

    1. DEFINITIONS

    

    For
      purposes of this Maintenance Services Addendum, each word or phrase listed
      below
      has the meaning designated. Each word or phrase defined in the Master Software
      License and Support Agreement shall (unless otherwise specified herein) have
      the
      meaning there designated. Other words or phrases used herein may be defined
      in
      the context in which they are used, and shall have the respective meanings
      there
      designated.

    

    “Priority
      One Defect” means
      a Defect that, in the reasonable judgment of Licensee, renders the Software
      inoperable or is causing a serious adverse impact to Licensee’s business
      operations. 

    

    “Priority
      Two Defect”
      means a Defect that materially impairs the Software’s performance of one or more
      facilities or functions detailed in the Specification, with the consequence
      that
      Licensee’s business can be performed but in a restricted or inefficient
      manner.

    

    “Priority
      Three Defect”
      means a Defect that does not significantly effect Licensee’s current day to day
      business operations; but the performance or efficiency of Licensee’s business
      operations might improve if such Defect were to be corrected.

    

    “Production
      Period” means
      (i) the total number of hours per calendar month for which Maintenance Services
      are provided for the applicable Software, (ii) less any time expended by
      Licensor to correct a problem with the Software for which Licensor is not
      responsible as a part of Maintenance Services. 

    

    “Supported
      Environment”
      for any Chordiant Marketing product(s) Software means the configurations of
      hardware and RDBMS (relational database) platforms and releases of the Software
      on which the Documentation states the Software can run and for which Chordiant
      provides Support. Supported Environment for any other Chordiant product Software
      means the hardware and operating system platform on which the Documentation
      states the Software can run and for which Chordiant provides
      Support.

    

    “Update”
      means and includes the modifications or revisions made to the Software (i)
      to
      improve upon or repair existing features and operations within the Software,
      (ii) to ensure compatibility with new releases of existing systems (including
      hardware, operating systems and middleware) and external services through
      standardized interfaces, or (iii) to comply with applicable laws, regulations,
      industry standards or market practice.

    

    2. MAINTENANCE
      SERVICE 

    

    2.1 Problem
      Resolution.
      Licensor will provide problem resolution for Defects in accordance with the
      service priorities and effort standards provided in Section
      4
      below. For the avoidance of doubt, the problem resolution provided by Licensor
      must correct the Defect for the version of Software being used by Licensee.
      Licensor shall not be deemed to have satisfied its obligation to resolve Defects
      by requiring Licensee to move to a new version of the Software. 

    

    2.2 Notification
      of Known Defects.
      Licensor will notify Licensee concerning all known Defects in the Software
      or
      Documentation, as such Defects become known or are reported to Licensor.
      Licensor will promptly correct any such Defects, or develop a work-around,
      patch
      or other fix, and furnish Licensee with such correction, work-around, patch
      or
      other fix as soon as practicable.

    

    2.3 Remote
      Access.
      At Licensee’s request, Licensor will provide remote technical assistance and
      consultation for (i) general help in the use and operation of the Software
      during Licensee’s normal business hours, and (ii) reporting of Priority One or
      Two Defects, 24 hours per day, seven days per week.

    

    2.4 Updates.
      Licensor will make available to Licensee (at no additional cost) all Updates
      for
      the Software, along with materials describing the purpose and function of the
      Updates, if and when such Updates are made generally available to Licensor’s
      customers who receive support and maintenance services. Licensor will ensure
      that Updates containing new features or enhancements to existing features are
      synchronised with the previous version. Such Updates shall not degrade the
      performance, functioning or operation of the Software. [*] Licensee is
      responsible for installing the Update, and Licensor will provide written
      instructions as are reasonably required to complete the installation. After
      an
      Update has been incorporated into the Software and accepted by Licensee, the
      Update shall be considered part of the Software for all purposes hereunder.
      Licensor will not install or attach any Updates or any other modification to
      the
      Software (electronically or otherwise), without first obtaining Licensee’s
      approval.

    

    2.5 Technological
      Improvements.
      Licensor will develop and make available to Licensee through Updates, if and
      when such Updates are made generally available to Licensor’s customers who
      receive support and maintenance services, all modifications and revisions
      required to enable the Software to operate in compliance with any applicable
      law, and in conjunction with any new releases of the computer equipment,
      operating systems or middleware used by Licensee, provided that the Software
      formerly operated on the third party equipment, systems or middleware being
      replaced.

    

    2.6 Documentation.
      Licensor will provide modified Documentation to correspond to changes made
      to
      the Software, within thirty (30) days of such changes.

    

    2.7 Continuing
      Repairs.
      The Software shall not be considered to have been repaired or restored to
      satisfactory operating condition, if within eight (8) hours from the time such
      Software is turned over to Licensee as being in fully operable condition, the
      Software requires additional remedial maintenance. 

    

    2.8  Maintenance
      Log and Reports.
      Licensor will maintain a maintenance log setting forth, in reasonable detail,
      all remedial maintenance and all other services performed on the Software;
      and
      Licensor will make such log available to Licensee, upon request. Each entry
      in
      the log must be acknowledged by the initials of a designated Licensee
      representative. In addition, upon request of Licensee, Licensor will provide
      Licensee with a written report summarizing for the reporting period: (i) all
      Maintenance Services provide by Licensor, (ii) all other services provided
      by
      Licensor, (iii) the actual on-site response time of Licensor’s Personnel to each
      Licensee request for Maintenance Services, (iv) the duration of each Software
      Defect, (v) the time expended on-site by Licensor until the Software was
      restored to proper operating condition, (vi) the “root cause” of each Defect
      corrected by Licensor, and (vii) corrective actions taken by Licensor to prevent
      the reoccurrence of a Defect. 

    

    

    

    3. TERM
      OF MAINTENANCE SERVICES 

    

    At
      Licensee’s election and subject to Licensee’s payment of the applicable
      Maintenance Services fee, Licensor will make Maintenance Services available
      for
      the Software for a minimum period of [*] years commencing from the initial
      date
      of Delivery of the Software. 

    

    4. PRIORITY
      RESPONSE FOR SOFTWARE DEFECTS 

    

    Each
      reported Defect will be classified by Licensee as a Priority One, Priority
      Two
      or Priority Three Defect. Licensor will respond to Licensee’s request for
      support in a manner appropriate for the Priority of Defect specified by Licensee
      as follows. 

    

    4.1  Priority
      One Defect.
      Licensor will initiate diagnostic and remedial measures within one (1) hour
      of
      Licensee’s telephonic, electronic or other notification of a Priority One
      Defect. Once Licensor has commenced corrective measures, Licensor will work
      continuously and diligently until the Defect has been remedied. Licensor will
      periodically advise Licensee concerning Licensor’s progress.

    

    4.2  Priority
      Two Defect.
      Licensor will initiate diagnostic and remedial measures within four (4) hours
      of
      Licensee’s telephonic, electronic or other notification of a Priority Two
      Defect. Once Licensor has commenced corrective measures, Licensor will complete
      all such corrections as soon as reasonably practicable. Licensor will
      periodically advise Licensee concerning Licensor’s progress. 

    

    4.3  Priority
      Three Defect.
      For Priority Three Defects, Licensor will endeavor to correct the Defect and
      furnish a remedy no later than the next Update. 

    

    4.4  Normal
      Support Hours.
      Licensee shall report all problems to the closest support center. Licensor
      reserves the right to alter the location(s) of its support centers, and shall
      inform the Licensee in writing should this occur. Licensor provides Maintenance
      Services from the following support centers during their respective normal
      business hours as set out below:

    

    

    EMEA 08:30
      - 17:30 UK Time {Greenwich Mean Time (GMT) or British Summer Time (BST),
      as applicable}

    Americas 08:30
      - 17:30 Pacific Std Time (i.e. 16:30 - 01:30 UK Time, subject to time
      changes)

    Asia/Pacific 08:30
      - 17:30 Melbourne, Australia (i.e.23:30 - 08:30 UK Time, subject to time
      changes)

    

    “Standard
      Support” means calls
      from any priority level which are supported from Monday to Friday during the
      normal business hours for Licensee’s closest support center as set out
      above.

    “Premier
      Support” means,
      in addition to Standard Support, Licensee will receive extended 24 Hour support
      in respect of PRIORITY ONE CALLS FOR LICENSOR’S PLATFORM AND FOUNDATION SOFTWARE
      ONLY from Monday to Sunday inclusive as noted below (not available for
      Application Products).

    

    Notes:

    
      	(a)  	
              PRIO-1
                calls are to be placed by phone and
                followed up with a detailed explanation of the problem via e-mail
                to the
                respective regional support center.

            

    

    
      	(b)  	
              Licensee
                may categorize the priority level in accordance with the above definitions
                when reporting the problem.

            

    

    

    Extended
      24-hour Support (available
      for Priority One calls on Chordiant’s Platform and Foundation Software
      only)

    

    In
      respect of “Standard Support” and “Premier Support” for Platform and Foundation
      software products only, Chordiant extends support hours to 24 hours per day,
      seven days a week, for
      Priority One calls only.
      Outside the normal regional support hours, Chordiant will decide if the Priority
      One case continues to be handled by the local regional support center, or if
      the
      Priority One call will “follow the sun” to another support center and will, if
      required, initiate a page to 24-hour on-call Maintenance Services engineers.
      

    

    5. LICENSEE’S
      RESPONSIBILITIES

    

    5.1 Licensee
      agrees to: 

    

    (i)
       Provide
      Licensor with remote
      access
      to Software during the term of this Agreement via an electronic link;
      and

    (ii)
       Provide
      any reasonable
      assistance
      that Licensor may require from the Designated Contacts and other appropriate
      Customer representatives (e.g. network administrator, as the case may be)
      to enable Licensor to provide Licensee with Maintenance Services;
      and

    (iii)
       Establish
      and maintain the conditions of the Supported Environment in compliance
      with Chordiant Certified Matrix and Technical Stack
      developed for the installed release or any environmental operating ranges
      specified by the manufacturers of the components of the Designated Center.
      Any
      deviation from this Support Environment voids all resolutions described in
      Section 4 above within the timeframe set forth below.

    

    5.2 In
      the event that Licensee fails to comply with the above and this necessitates
      on-site attendance and/or the provision of additional Maintenance Services,
      Licensee agrees to pay Licensor for any time and expenses associated with such
      services at Licensor’s then-current time and materials services
      rates.

    

    5.3 Licensee
      agrees to designate appropriately qualified
      and trained personnel to be the Designated Contacts,
      and only those individuals shall request Support services. Licensee agrees
      endeavor to adequately train and obtain “Chordiant certification” for, and
      forward to Licensor the names and contact details of the Designated Support
      Contacts.

    

    5.4 Licensee
      agrees to maintain procedures
      to facilitate reconstruction of any lost or altered files, data or
      programs
      and Licensee agrees that Chordiant will not be responsible under any
      circumstances for any consequences arising from lost or corrupted data, files
      or
      programs. Licensee is solely responsible for carrying out all necessary backup
      procedures for its own benefit, to ensure that data integrity can be maintained
      in the event of loss of data for any reason and that Licensee’s programs can be
      restored.

    

    5.5 Licensee
      agrees to notify Licensor’s Maintenance Services staff promptly of any
      malfunction of the Supported Software.

    

    5.6 Licensee
      agrees to provide Licensor with access
      to and use of such of the Customer’s information and
      facilities
      reasonably necessary to service the Supported Software including, but not
      limited to, an accurate description of the Designated Center and the current
      Supported Environment, the problem being reported, the transactions and any
      error messages, along with screenshots and log files.

    

    5.7 Licensor
      shall have no responsibility to fix any Defects arising out of or related to
      the
      following causes:

    

    
      	A.  	
              any
                modifications or enhancements made by the Licensee to the Software
                or the
                application specific environment, unless such modifications or
                enhancements are specifically approved in writing by Licensor Product
                Support; this includes but is not limited
                to;

            

    

    

    -
      location of binaries

    -
      scripts provided by Licensor

    -
      any application specific object (e.g., table, view, index, trigger)

    -
      any application specific operating system permissions or role
      privileges

    

    
      	B.  	
              Any
                modification or combination of the Software (in whole or in part),
                including without limitation any portions of the Software code or
                Source
                Code customized by the customer that is not part of the unmodified
                Software Delivered by Licensor or for which Licensor has not received
                and
                acknowledged receipt of the source code and agreed to
                Support.

            

    

    

    
      	C.  	
              Use
                of the Software in an environment other than a Supported Environment.
                

            

    

    
      	D.  	
              Accident;
                electrical or electromagnetic stress; neglect; misuse; failure or
                fluctuation of electric power, failure of media not furnished by
                Licensor;
                operation of the Software with other media and hardware, software
                or
                telecommunication equipment or software; or causes other than ordinary
                use.

            

    

    

    6.
         [*]Citicorp Professional Services Agreement

     

    Exhibit 10.50

    MASTER
      

    PROFESSIONAL
      SERVICES AGREEMENT

    

    

    
      	
              Commencement
                Date:

            	
              April
                3, 2006

            

    

    

    

    
      	
              Party:

            	
              CONTRACTOR

            	
              CLIENT

            
	
              Name:

            	
              Chordiant
                Software, Inc.

            	
              Citicorp
                Credit Services, Inc. (USA)

            
	
              Address:

            	
              20400
                Stevens Creek Blvd.

              Cupertino,
                CA 95014

            	
              14000
                Citi Cards Way

              Jacksonville,
                FL 32258

            
	
              State
                of Incorporation:

            	
              Delaware

            	
              Delaware

            

    

    

    

    IN
      CONSIDERATION of
      the mutual covenants and undertakings contained herein, and intending to be
      legally bound, Contractor and Client (as designated above) agree as
      follows.

    

    1.
       DEFINITIONS

    

    1.1 Specific
      Words or Phrases. For
      purposes of this Agreement, each word or phrase listed below shall have the
      meaning designated. Other words or phrases used in this Agreement may be defined
      in the context in which they are used, and shall have the respective meaning
      there designated.

    

    “Acceptance
      Criteria”
      means the applicable Specifications and Documentation, together with such other
      test data, test conditions and exception conditions as may be specifically
      set
      forth or incorporated by reference in the Work Order.

    

    “Affiliate”
      means and includes any entity that directly or indirectly controls, is
      controlled by, or is under common control with Client, where “control” means the
      ownership of, or the power to vote, at least twenty percent (20%) of the voting
      stock, shares or interests of an entity. An entity that otherwise qualifies
      under this definition will be included within the meaning of “Affiliate” even
      though it qualifies after the execution of this Agreement.

    

    “Agreement”
      means the terms of this Master Professional Services Agreement (sometimes
      referred to as “Master Agreement”), together with the appendices and other
      exhibits attached hereto or incorporated herein by reference; provided, however,
      that for each particular Work Order, reference to “Agreement” shall be construed
      solely as a reference to the agreement that arises as a result of the execution
      of the Work Order, which agreement shall be a two party agreement between
      Contractor and the specific entity (either the entity designated above as
“Client” or an Affiliate) that executes the Work Order. 

    

    “Client”
      means, for the general purposes of the Master Agreement, the entity designated
      above as “Client”. However, for the particular purposes of any agreement that
      arises as a result of a Work Order, reference to “Client” shall be construed
      solely as a reference to the specific entity (either the entity designated
      above
      as “Client” or an Affiliate) that executes the Work Order.

    

    “Contractor”
      means
      the entity designated above as “Contractor”.

    

    “Defect”
      means a defect, failure, malfunction, or nonconformity in a Deliverable that
      prevents the Deliverable from operating in accordance with the applicable
      Acceptance Criteria.

    

    “Deliverable(s)”
      means and includes the item(s) described on the applicable Work Order that
      is to
      be developed or prepared by Contractor and furnished to Client. 

    

    "Intellectual
      Property Rights"
      means all trade secrets, patents and patent applications, trade marks (whether
      registered or unregistered and including any goodwill acquired in such trade
      marks), service marks, trade names, business names, internet domain names,
      e-mail address names, copyrights (including rights in computer software), moral
      rights, database rights, design rights, rights in know-how, rights in
      confidential information, rights in inventions (whether patentable or not)
      and
      all other intellectual property and proprietary rights (whether registered
      or
      unregistered, and any application for the foregoing), and all other equivalent
      or similar rights which may subsist anywhere in the world.

    

    “Party”
      means either Contractor or Client, individually as the context so requires;
      and
“Parties”
      means Contractor and Client, collectively.

    

    “Personnel”
      means and includes a Party’s or an Affiliate’s directors, officers, employees,
      agents, auditors, consultants, and subcontractors.

    

    “Project
      ”
      means the particular project described on a Work Order. 

    

    “Services”
      means the services described on a Work Order that are to be furnished by
      Contractor to Client.

    

    "Specifications"
      means and includes the description of functional, technical, design and
      performance characteristics of the Deliverables agreed to by the Parties
      (including any requirements or characteristics specified in, or incorporated
      by
      reference into the applicable Work Order), and all modifications to the
      foregoing that are made from time to time by written agreement of the Parties.
      

    

    “Work
      Order”
      means a transactional document (which may be entitled “Work Order”, “Statement
      of Work”, or “Project Schedule” and in all such cases is intended to be
      considered a “Work Order” for all purposes under this Agreement) that is entered
      into pursuant to this Master Agreement by and between Contractor and either
      the
      entity designated above as “Client” or an Affiliate and describes the Services
      or Deliverables to be provided by Contractor to such Client / Affiliate.

    

    1.2 Common
      Words.
      The following words shall be interpreted as designated: (i) “or” connotes any
      combination of all or any of the items listed; (ii) where “including” is used to
      refer to an example or begins a list of items, such example or items shall
      not
      be exclusive; and, (iii) “specified” requires that an express statement is
      contained in the relevant document.

    

    
      	
              2.

            	
              TERM
                AND TERMINATION

            

    

    

    2.1 Master
      Agreement.
      This Master Agreement shall commence as of the Commencement Date designated
      above, and shall continue in effect thereafter, unless superceded or otherwise
      terminated by agreement of the Parties. For the avoidance of doubt, termination
      of the Master Agreement shall not result in the termination of any Work Order,
      each Work Order being terminable only in accordance with its own
      provisions.

    

    2.2  Work
      Orders.
      A
      Work Order shall become effective only when duly signed on behalf of the Parties
      to be bound thereby, and shall continue in effect through the earlier of: (i)
      the date the Services have been satisfactorily completed or the Deliverables
      have been accepted and all applicable warranty and license periods have expired
      or otherwise terminated, or (ii) the date of termination specified by either
      Party in accordance with the following conditions.

    

    
      	2.2.1  	
              Client
                may terminate any Work Order with or without cause, at any time in
                its
                sole discretion, upon five (5) days prior written notice to Contractor.
                In
                the event Client terminates a Work Order without cause, Client will
                pay
                Contractor the reasonable value for: (i) Services properly performed
                by
                Contractor prior to the effective date of termination, (ii) services
                performed by Contractor pursuant to Section
                   2.3,
                and, (iii) reimbursable expenses incurred by Contractor pursuant
                to
                Section
                9.4.

            

    

     

    
      	2.2.2  	
              Contractor
                may only terminate a Work Order if Client defaults in any material
                obligation and fails to cure the default within thirty (30) days
                after
                Client has received Contractor’s notice of the default.
                

            

    

    

    For
      the avoidance of doubt, notice of termination for any Work Order shall not
      be
      construed to be notice of termination for any other Work Order. 

    

    2.3 Orderly
      Transfer. Upon
      the termination of a Work Order for any reason whatsoever (including a default
      by either Party), Contractor will provide such information, cooperation and
      assistance to Client, as Client may reasonably request, to assure an orderly
      return or transfer to Client or Client’s designee of all proprietary data (and
      related records and files) and materials of Client, and all Work Product for
      which payment has been or is made, in their then current condition.

    

    2.4 Retention
      of Archival Copy. If
      Client’s right to use any software provided by Contractor or any other
      Contractor Materials is terminated for any reason whatsoever, then Client shall
      nevertheless be entitled to retain copies of such software, Contractor
      Materials, and related documentation for archival purposes and to satisfy
      Client’s obligations under all applicable laws.

    

    3.  PROJECT
      IMPLEMENTATION

    

    3.1 Provision
      of Services and Deliverables.
      This Master Agreement does not by itself commit Client or any Affiliates to
      purchase any services or products. Rather, this Master Agreement merely sets
      forth the terms and conditions that will govern the provision of Services or
      Deliverables to Client or an Affiliate as a result of the execution of a Work
      Order by Contractor and Client or the Affiliate. 

    

    3.2  Work
      Orders.
      Work Orders may be entered into with Contractor under this Master Agreement
      by
      either the entity designated above as “Client” or any Affiliate. The entity that
      executes a Work Order with Contractor shall be considered the “Client” for all
      purposes of the Work Order; and the Work Order shall be considered a two party
      agreement between Contractor and such entity. Each Work Order shall be
      substantially in the form of Appendix
      A, shall
      incorporate by reference the provisions of this Master Agreement as though
      such
      provisions were set forth therein in their entirety, and shall set forth: (i)
      a
      description of the Services or Deliverables to be furnished by Contractor,
      (ii)
      the fees to be paid by Client for the Services or Deliverables, (iii) the
      applicable Acceptance Criteria, (iv) the name of the project manager for Client
      and the name of the project manager for Contractor, and, (v) such additional
      terms and conditions as may be mutually agreed upon by Contractor and the
      respective Client. 

    

    4. RELATION
      OF PARTIES

    

    4.1 Client
      and Affiliates.
      Contractor acknowledges that Client and each of the Affiliates may use or
      benefit from the use of any Services performed, or Deliverables prepared and
      furnished, by Contractor as part of a Project.

    

    4.2 Project
      Managers and Status Reports.
      For each Project, each Party will designate a suitably qualified project manager
      who will represent such Party and be responsible for assigning, scheduling
      and
      supervising such Party’s Personnel. During a Project, Contractor’s project
      manager will provide Client's project manager with status reports (at intervals
      determined by Client). Status reports may
      contain the following: (i) a summary of the current status of the Project
      (including specific progress made since the immediately preceding status
      report); (ii) a summary of the status of, or progress made on, all problems
      identified in previous status reports (and not previously reported as
      corrected); (iii) a summary of any problems identified since the preceding
      status report and any recommended remedial action; and, (iv) the amount of
      any
      anticipated delay in the completion of any milestone beyond the applicable
      date
      specified in the Work Order, the cause of such delay and any recommended
      remedial action. 

    

    4.3 Independent
      Contractor.
      Contractor will perform all Services as an independent contractor. Neither
      this
      Agreement nor Contractor’s performance of Services shall create an association,
      partnership, joint venture, or relationship of principal and agent, master
      and
      servant, or employer and employee, between Client and Contractor; and neither
      Party will have the right, power or authority (whether expressed or implied)
      to
      enter into or assume any duty or obligation on behalf of the other
      Party.

    

    4.4 Contractor’s
      Personnel. Contractor
      will (if requested by Client at any time before or during any Project) furnish
      information substantiating the qualifications of any individual who Contractor
      intends to assign, or has assigned, to a Project. Client will be entitled to
      review such information in order to confirm the qualifications. After an
      individual has been assigned to a Project, Contractor will not reassign such
      individual in connection with any assignment other than the Project without
      the
      prior written consent of Client, which shall not be unreasonable withheld.
      In
      addition, Contractor will assign its Personnel to Projects in a manner that
      minimizes disruptions caused by the need for reorientation. Contractor further
      warrants that Contractor’s Personnel will not hold themselves out as employees
      or agents of Client, nor seek to be treated as employees of Client for any
      purpose, including claims of entitlement to fringe benefits provided by Client,
      or for disability income, social security taxes or benefits, Federal
      unemployment compensation taxes, State unemployment insurance benefits or
      Federal income tax withholding at source. Contractor will file all applicable
      tax returns for all of its Personnel assigned hereunder in a manner consistent
      with its status as an independent contractor of services; and Contractor will
      make all required payments and deposits of taxes in a timely manner. 

    

    4.5 Replacement
      of Contractor Personnel.
      Any individual who is assigned by Contractor to a Project may be temporarily
      replaced by Contractor if such individual does not report to work due to
      illness, accident or other events outside of Contractor’s control. Upon written
      notice to Contractor, Client shall be entitled to require Contractor to replace
      any individual who is assigned by Contractor to a Project and bar such
      individual from performing any Services for Client if Client determines in
      its
      reasonable discretion that the individual is unacceptable for any reason,
      including if the individual (i) is not compatible with Client employees
      connected with the Project,
      (ii)
      fails to comply with any applicable laws, ordinances, regulations, codes, or
      with Client’s security or work place policies or procedures (whether or not
      specified herein), or (iii) fails (in Client’s sole determination) to perform
      assignments in a professional and competent manner. Contractor further agrees
      to
      bar any such individual from performing any Services for Client immediately
      upon
      it becoming aware of such noncompliance.  If
      one of Contractor’s Personnel is removed from a Project either by Contractor or
      for cause at the request of Client, then Contractor will (at its expense)
      provide the training and orientation required to enable the replacement
      Personnel to perform as required. All replacement Personnel must be acceptable
      to Client in the sole exercise of Client’s discretion. 

    

    

    
      	
              5.

            	
              CLIENT’S
                POLICIES AND PROCEDURES

            

    

    

    5.1 General.
      Contractor will ensure (i) that its Personnel comply with the corporate policies
      promulgated by Client or an Affiliate that are designed to adhere to applicable
      laws and regulations, and with the security and work place policies and
      procedures in effect for any facility of Client or an Affiliate where the
      Services are performed (including Information Security Standards and any
      supplementary practices or procedures provided by Client to Contractor), and
      (ii) that all Services are performed in a manner that will minimize any
      interference with Client’s or an Affiliate’s normal business operations.

    

    5.2  Equipment
      and Network Security. If
      access to Client’s or an Affiliate’s computer systems, other equipment or
      personal property (“Client’s Systems”) is required in order for Contractor to
      fulfill its obligations to Client, then Client shall determine the nature and
      extent of such access. If Client or an Affiliate provides Contractor with remote
      access to Client’s Systems, then any and all information relating to such remote
      access shall be considered Client’s Confidential Information and shall be
      subject to the obligations of confidentiality set forth in Section
      12
      below. In addition, any and all access to Client’s Systems shall be subject to
      the following. 

    

    
      	
              5.2.1

            	
              Client’s
                Systems shall be used solely to perform Services for Client, and
                shall not
                be used for any purpose other than the legitimate business purposes
                of
                Client.

            

    

    
      	5.2.2  	
              Access
                to Client’s Systems shall be restricted to Contractor’s Personnel who need
                access in order for Contractor to fulfill its obligations under this
                Agreement; and no access rights will be transferred to any other
                individuals without the prior written consent of Client.
                

            

    

    
      	5.2.3  	
              Contractor
                will ensure that its Personnel do not attempt to break Client’s or an
                Affiliate’s security systems, or attempt to obtain access to any programs
                or data beyond the scope of the access granted by Client in writing.
                

            

    

    
      	
              5.2.4

            	
              Without
                limiting any of its other rights, Client reserves (for itself and
                its
                Affiliates) the rights to restrict and monitor the use of Client’s
                Systems, and to access, seize, copy and disclose any information,
                data or
                files developed, processed, transmitted, displayed, reproduced or
                otherwise accessed in conjunction with such use. Client or an Affiliate
                may exercise its rights reserved hereunder: (i) to verify the performance
                of Services or the quality of Deliverables; (ii) to assure compliance
                by
                Contractor’s Personnel with Client’s or the Affiliate’s policies and
                procedures; (iii) to investigate conduct that may be illegal or may
                adversely affect Client, an Affiliate or its or their employees;
                or (iv)
                to prevent inappropriate or excessive personal use of Client’s Systems.
                Contractor will advise its Personnel concerning the rights reserved
                hereunder.

            

    

    

    5.3 Drug
      Abuse Policy.
      Contractor will ensure that its Personnel who are assigned to perform Services
      at Client’s facilities comply with Client’s Drug Abuse Policy and that its
      Personnel do not sell, distribute, manufacture, process, possess, use or become
      under the influence of illegal drugs or illicit narcotics (non-prescriptive
      medication). The phrases “illegal drugs” and “illegal narcotics” shall have the
      meaning applied by the state or country in which the business is conducted.
      Based on the nature or scope of the assignment, Client may require Contractor’s
      Personnel to be tested (at Client's direction but at Contractor’s expense) for
      illegal drugs or illegal narcotics as a condition to performing Services for
      Client. If an individual refuses to submit to the test or the individual’s test
      results are positive, such individual will not be permitted to perform any
      Services for Client. 

    

    5.4 Fingerprinting.
      Contractor will not assign, or retain on assignment, any person to provide
      Services for Client that Contractor knows or has reason to believe has a
      criminal background. Based on the nature or scope of the assignment, Client
      may
      require Contractor’s Personnel to be fingerprinted and to pass successfully a
      criminal background check (at Contractor’s expense) as a condition for
      performing Services for Client. 

    

    5.5 Working
      Hours.
      Contractor’s Personnel will observe the working hours, work rules and holiday
      schedule of Client when working on Client’s facilities, unless otherwise
      directed or agreed by Client. The adherence by Contractor’s Personnel to such
      working hours, work rules and holiday schedules shall not justify any failure
      by
      Contractor to comply with agreed upon schedules and deadlines. Contractor
      acknowledges that Client’s normal, professional workday consists of eight (8)
      working hours, exclusive of time required for personal breaks and meals.

    

    5.6  Diversity
      Initiative.
      Licensor acknowledges that Licensee has implemented a Supplier Diversity Program
      which, among other initiatives, encourages the use of minority and women-owned
      (“Diverse Suppliers”) businesses as suppliers and subcontractors to the fullest
      extent possible consistent with the efficient performance of its business
      strategies. To assist Licensee in complying with these goals, if Licensor
      currently provides any reports tracking its use of Diverse Suppliers in the
      provision of products, goods or services, to any other of its customers, then
      Licensor will provide (at no additional cost to Licensee) copies of such
      reports, whenever they are prepared and updated, to Licensee. Licensee shall
      keep and treat such reports in accordance with the Licensee’s confidentiality
      obligations herein. These reports should be forwarded to the attention of the
      Citigroup Supplier Diversity Program, 333 West 34th Street, New York, NY 10001,
      attention Director, Supplier Diversity Program.

    

    6.  ACCEPTANCE

    

    6.1 Applicability.
      The provisions of this Section
      6
      shall only apply to Services and/or Deliverables that Contractor has agreed
      to
      provide and/or develop on a fixed-cost basis, unless otherwise specified by
      the
      Parties on the Work Order.

    

    6.2 Acceptance
      Test.
      After a Deliverable has been furnished to Client, Client will be entitled to
      test the Deliverable to determine if it operates in accordance with, and
      otherwise conforms to, the Acceptance Criteria. Contractor will provide (at
      no
      additional cost to Client) such assistance as Client may reasonably require
      to
      conduct the acceptance test. If the period or procedures for the acceptance
      test
      are not specified on the Work Order, then (i) Client will have ninety (90)
      days
      from the date the Deliverable is received by Client to conduct the test, and
      (ii) Client may use its own internal test procedures. No Deliverable shall
      be
      deemed to have been accepted unless Client notifies Contractor that the
      Deliverable has successfully passed the acceptance test. Acceptance of a
      Deliverable shall not be deemed to constitute a waiver by Client of any rights
      it may have based on Contractor’s warranties.

    

    6.3 Acceptance
      or Rejection. If
      Client determines that a Deliverable successfully operates in accordance with,
      and otherwise conforms to, the Acceptance Criteria, Client will notify
      Contractor that Client accepts the Deliverable. If Client determines that a
      Deliverable does not operate in accordance with, or otherwise conform to, the
      applicable Acceptance Criteria, then Client will provide Contractor with a
      notice describing the Defect. Contractor will have ten (10) days from the date
      it receives Client’s notice of Defect to correct (at no additional cost to
      Client) the Deliverable. If Contractor redelivers a Deliverable, then Client
      will be entitled to repeat the testing process. If (through no fault of Client)
      Contractor fails to deliver, within the ten (10) day period, a Deliverable
      that
      conforms to the Acceptance Criteria, then Client may reject the Deliverable
      and
      terminate the applicable Work Order (in whole or in part) upon notice to
      Contractor, without financial liability or obligation (for the portion
      terminated). 

    

    6.4 Project
      Completion. A
      Project shall be deemed to have been successfully completed only upon Client’s
      acceptance of all Services or Deliverables. If (through no fault of Client)
      all
      of the Services and Deliverables have not been furnished in an acceptable manner
      by the date set forth as the “Completion Date” on the Work Order, Client may
      terminate the Work Order (in whole or in part) upon notice to Contractor,
      without financial liability or obligation (for the portion terminated).

    

    
      	
              7.

            	
              PROPRIETARY
                RIGHTS

            

    

    

    7.1 Work
      Product.
      Except as otherwise specifically provided in Sections
      7.4, 7.5 and 7.6
      below, the phrase “Work Product” shall mean and include the Deliverables, all
      ideas, concepts, know-how, techniques, inventions, discoveries, improvements,
      specifications, designs, methods, devices, systems, reports, studies, computer
      software (in object or source code), programming and other documentation, flow
      charts, diagrams and all other information or tangible material of any nature
      whatsoever (in any medium and in any stage of development or completion)
      relating to the subject matter of this Agreement or the applicable Work Order,
      that are conceived, designed, practiced, prepared, produced or developed by
      Contractor or any of its Personnel which is not a derivative work of any
      Contractor Materials (as such term is defined below) and which is not a
      derivative work of any Licensed Software (as such term is defined below): (i)
      during the course of the Project; (ii) based upon knowledge or information
      learned or gained from Client; or, (iii) resulting from the use of Client’s
      facilities, Personnel, or materials. To the fullest extent permitted under
      law,
      all Work Product shall be the property of Client and shall be deemed to be
      a
“work made for hire” (as defined in Section 101 of Title 17 of the United States
      Code). Contractor shall keep and maintain adequate and current written records
      of all Work Products made by Contractor or its Personnel. The records will
      be in
      the form of notes, sketches, drawings, or any other format that may be specified
      by Client, and will be available to and remain the sole property of Client
      at
      all times. Contractor will retain ownership of all derivative works of its
      Contractor Materials and of its Licensed Software; provided however that Client
      is hereby granted by Contractor a perpetual, worldwide, irrevocable,
      royalty-free, non-exclusive license to use, execute, distribute, reproduce,
      display, modify, prepare derivative works of and perform, any Deliverables
      which
      are or contain any derivative works of Contractor Materials or of Licensed
      Software, subject to any of Contractor’s and Client’s rights and obligations
      under the Master Software License and Support Agreement (the “License
      Agreement”) between the parties dated as of February 1, 2006. Notwithstanding
      the foregoing, Contractor’s rights to use derivative works of its Contractor
      Materials and of its Licensed Software and Client’s right to use Work Product
      remains subject to each party’s obligations under Section 12 of this Agreement.
      Notwithstanding anything to the contrary herein, the Parties may specify
      alternate or different ownership and/or license rights in any applicable Work
      Order.

    

    7.2 Assignment
      of Rights to Work Product.
      To the extent any Work Product is (for any reason whatsoever) determined not
      to
      be “work made for hire”, Contractor hereby irrevocably and exclusively assigns,
      transfers and conveys to Client all Intellectual Property Rights, in and to
      any
      and all Work Product. Contractor acknowledges that neither it nor its Personnel
      will retain any Intellectual Property Rights in the Work Product. Contractor
      will require each of its Personnel who provide Services or work on Deliverables,
      or may in any way be involved or responsible or claim to be involved or
      responsible in the conception, design, practice, preparation, production or
      development of the Work Product, to be bound by a written Non-Disclosure and
      Work Product Assignment Agreement in the form attached as Appendix
      B,
      or in the form of non-disclosure and work product assignment agreement regularly
      used by Contractor.
      Contractor will furnish executed originals of all such agreements to Client
      prior to commencing any work hereunder. Contractor acknowledges and agrees
      that:
      (i) the assignment to Client of the Work Product and the Intellectual Property
      Rights therein shall extend throughout the world, shall be in perpetuity and
      shall not lapse for any reason whatsoever, including Client not exercising
      the
      rights assigned to it; (ii) the assignment to Client of the Work Product and
      the
      Intellectual Property Rights therein shall be an integral part of this
      Agreement; and, (iii) no amount(s) shall be payable by Client to Contractor
      for
      the assignment of the Work Product and the Intellectual Property Rights therein,
      other than the amount(s) payable by Client to Contractor under the relevant
      Work
      Order. If Contractor obtains patent rights on any derivative works to its
      Contractor Materials or its Licensed Software that constitute all or part of
      the
      Deliverables, then Contractor agrees that it will not assert any claim of
      infringement of such patent rights against Client (or any of Client’s
      subsidiaries or affiliates), or any of Client’s agents, employees, distributors,
      resellers, customers and suppliers.

    

    7.3 Legend.
      Contractor acknowledges that all or part of the Work Product may be copyrighted,
      trademarked, or patented solely by Client or its designee. Contractor will
      assist Client, or its designee, at the expense of Client, in every proper way
      to
      secure the Intellectual Property Rights in the Work Product and will disclose
      to
      Client all pertinent information and data, and execute all applications,
      specifications, oaths, assignments and all other instruments which Client shall
      deem necessary in order to obtain and secure the Intellectual Property Rights
      in
      and to the Work Product. All
      items provided to Client, or developed hereunder, or which otherwise qualify
      as
      Client’s property, shall be marked as follows: “©
      (year) by (Legal
      name of Client or Affiliate).
      All rights reserved.”
      Any Work Product that is software will be programmed to display the foregoing
      legends in the opening screens produced at the initiation of any session in
      which such software may be accessed by a videographic device, as well as on
      such
      reports and print pages.

    

    7.4  Contractor
      Materials.
      Client acknowledges that in developing or furnishing a Deliverable (or any
      other
      Work Product), or in performing Services, Contractor may utilize pre-existing
      proprietary methodologies, tools, models, software, procedures, documentation,
      know-how and processes owned by Contractor (“Contractor Materials”). Client
      further acknowledges that Contractor may modify or improve the Contractor
      Materials during the course of a Project. Client agrees that all such
      modifications or improvements shall be included within the meaning of
“Contractor Materials”, unless otherwise specifically agreed by the Parties. If
      any Contractor Materials are incorporated into a Deliverable or furnished in
      conjunction with a Deliverable, Contractor will be conclusively deemed to have
      (at no additional cost) granted to Client and its Affiliates a perpetual,
      worldwide, irrevocable, royalty-free, non-exclusive license to (i) use, execute,
      reproduce, display, perform, distribute, and prepare derivative works of the
      Contractor Materials in conjunction with the use of the Work Product or other
      Deliverable, and (ii) authorize or sublicense others from time to time to do
      any
      or all of the foregoing subject to any of Contractor’s and Client’s rights and
      obligations under the License Agreement. 

    

    7.5 Third
      Party Intellectual Property.
      If Contractor intends to develop a Deliverable in a manner that requires Client
      to use any software or other intellectual property of a third party (“Third
      Party Materials”) in order to use such Deliverable, then Contractor will (i)
      provide Client with prior notice, specifying in reasonable detail the nature
      of
      the Deliverable’s dependency on the Third Party Materials, and (ii) arrange for
      Client to obtain (for no additional cost or on such terms as may be acceptable
      to Client) a perpetual, irrevocable, royalty-free, non-exclusive right and
      license to use the Third Party Materials in connection with Client’s or an
      Affiliates’ use of the Deliverable.

     

    7.6 License
      Rights Under Separate Agreement.
      The Parties specifically acknowledge and agree that the respective rights of
      the
      Parties hereto in any of Contractor’s proprietary software, any third party
      software, and any other intellectual property that Client has licensed (or
      agrees to license) under the License Agreement (the “Licensed Software”) shall
      be determined in accordance with the provisions of the License Agreement and
      shall not be included within the meaning of the phrase “Contractor Materials”,
      as defined in Section
      7.4;
      provided that the creation of any derivative works of such Licensed Software
      shall be determined in accordance with the provisions of this Agreement.

    

    7.7 Use
      of Knowledge Capital. 

    

    7.7.1. In
      every case, each party will retain the right to all of its ideas, skills, tools,
      techniques, and processes (“Knowledge Capital”). To the extent that Knowledge
      Capital of Contractor has been incorporated into or is embedded in the Work
      Product, Client will have a perpetual, nonexclusive, world-wide, royalty-free
      right to use, execute, modify, reproduce, display, perform, and prepare
      derivative works based on such Knowledge Capital, subject to the requirements
      of
      Section 12. 

    

    

    7.7.2.  Each
      party acknowledges and agrees: (i) that the other party has the right to re-use
      any of its know-how, ideas, concepts, methods, processes, or similar
      information, however characterized, whether in tangible or intangible form,
      at
      any time and without limitation subject to the limitations of Section 12 and
      the
      parties respective Intellectual Property Rights, and (ii) that each party
      retains ownership of any and all of its Intellectual Property Rights that
      existed prior to the Commencement Date including, but not limited to, all
      methods, processes, utilities, tools, concepts, designs, reports, programs,
      and
      templates.

    

    7.8 Application
      Development.
      In the event that the Parties agree to engage in an application development
      project, they will execute an Application Development Addendum in the form
      attached hereto as Appendix
      C.
      

    

    8.  TRAINING

    

    If
      a Deliverable requires Client’s Personnel to be trained in order to properly use
      the Deliverable, Contractor will provide on-site training in the use of such
      Deliverable for all users designated by Client's project manager, at a time
      or
      times and at rates mutually agreed to by the Parties, unless such training
      is
      already contemplated within the scope of Services set forth in the Work Order.
      

    

    
      	9.  	
              FEES
                AND PAYMENT TERMS

            

    

    

    9.1 Project
      Fees.
      The Project fees payable by Client for the Services and Deliverables properly
      furnished by Contractor pursuant to this Agreement, shall be designated (or
      determined based on the rates designated) on the applicable Work Order.

    

    9.2 Pricing
      Adjustments.
      Subject to any terms to the contrary in any applicable Work Order, unless
      separately agreed to by the Parties, Contractor will not increase its time
      and
      materials rates for Services provided to Client or an Affiliate by more than
      the
      lesser of: (i) five percent (5%) for each twelve (12) month period following
      the
      first year to which the applicable Work Order pertains; and (ii) the percentage
      rate of increase in the CPI (all items) for Urban Wage Earners and Clerical
      Workers from the preceding calendar year as determined by the United States
      Bureau of Labor Statistics.

    

    9.3 Taxes.
      Contractor
      may invoice Client for sales and use taxes properly levied against or upon
      (i)
      the furnishing of the Services or Deliverables to Client by Contractor pursuant
      to this Agreement, or (ii) Client’s use thereof. However, Client shall not be
      obligated to pay any penalties, interest, or late charges imposed as a result
      of
      Contractor's failure to remit such taxes to the taxing authority on a timely
      basis. In addition, if Contractor fails to provide Client with timely notice
      of
      any tax audit that could result in an increase in the amount of sales or use
      taxes assessed hereunder, then Client shall not be required to pay any
      additional taxes assessed as a result of such audit. Contractor shall be solely
      responsible for the payment of all other taxes, including personal property
      taxes, franchise taxes, corporate excise or corporate privilege, property or
      license taxes, all taxes relating to Contractor’s Personnel, and all taxes based
      on the net income or gross revenues of Contractor. 

    

    9.4 Reimbursable
      Expenses.
      To the extent applicable, Contractor will only be reimbursed for expenses that
      have been incurred at the request of Client or have been approved in advance
      by
      Client’s Project Manager and that are reasonable, warranted and cost effective.
      For each item of expense for which reimbursement is requested, Contractor will
      submit substantiating documentation in accordance with Client’s policies. All
      approved business expenses and pass-through charges will be reimbursed at cost
      (as actually incurred), without mark-up. 

    

    9.5 Non-Reimbursable
      Fees and Expenses.
      Contractor acknowledges it is being retained because of its expertise.
      Accordingly, Contractor will not request payment or reimbursement for time
      spent
      educating Contractor’s Personnel, or for any costs or fees associated with
      training Contractor’s Personnel (including time required for orientation of
      replacement Personnel). Contractor will not request payment for any charges
      reflecting duplication of services or costs (including more than one of
      Contractor’s Personnel attending the same meeting, or conversations among
      Contractor’s Personnel), unless such duplication is essential for Contractor’s
      proper performance of its obligations. Contractor will provide Client with
      details from its time and expense system (currently Databasics). Contractor
      will
      not be reimbursed for charges incurred for or by its support staff, for any
      overhead items, or for the time spent preparing invoices. Nevertheless, in
      the
      event that Client requests additional expense report documentation, then an
      administrative fee, if any, may be charged to the Client. 

     

    9.6 Terms
      of Payment.
      No amount arising under this Agreement shall be due from Client prior to
      Client’s receipt of a fully executed copy of this Agreement and the applicable
      Work Order, and Client’s receipt of an invoice: (i) referencing this Agreement
      and the applicable Work Order; (ii) separately itemizing the charges for the
      Services, Deliverables or other items covered therein, and setting forth, in
      reasonable detail, the basis for the charges; and (iii) including, in the case
      of any reimbursable expenses or other charges (including taxes), receipts or
      other documentation acceptable to Client. Unless otherwise specified on a Work
      Order, Contractor may invoice Client monthly for the fees and expenses incurred
      under the Work Order. All invoices shall be submitted to Client at the billing
      address designated on the applicable Work Order. Each properly and accurately
      prepared invoice shall be payable within sixty (60) days after its receipt
      by
      Client. Client will not be liable for interest or other late fees on past due
      invoices. Contractor specifically covenants that it will not use any methods
      of
      electronic repossession for any reason. All payments made by Customer shall
      be
      in U.S. Dollars and directed to:

    

    Chordiant
      Software Inc.

    P.O.
      Box 49291

    San
      Jose, CA 95161-9291

    

    Or
      wire to:

    Comerica
      Bank

    Chordiant
      Software, Inc.

    Account#:
      1891571372

    Routing
      #: 121137522

    

    

    9.7 Disputed
      Invoices.
      Client may withhold payments for any item(s) on Contractor's invoice that Client
      reasonably disputes in good faith.  Client shall provide to Contractor
      written notice of its intention to withhold payment, including the reason(s)
      for
      Client's reasonable dispute of the invoice (the “Dispute Notice”). 
Following receipt of the Dispute Notice, Contractor shall review the invoice
      in
      question and, if appropriate, send Client a corrected invoice.  If
      Contractor does not agree with Client's reasons for withholding payment or,
      if
      sent, the corrected invoice does not resolve the dispute to Client's
      satisfaction, then either party shall notify in writing the other party of
      the
      fact that the dispute continues (the “Response Notice”). 

    

    The
      parties shall use commercially reasonably efforts to resolve or settle the
      dispute within ninety (90) days from the date of the Response Notice. Within
      thirty (30) days from the date of receipt of the Response Notice, executives
      of
      both companies shall first meet in person to negotiate in good faith a
      resolution or settlement of the dispute. Contractor’s executive(s) shall be at
      the President or CEO level, and Client’s executive(s) shall be either the CIO of
      Citigroup N.A. Consumer Group or senior executive(s) designated by such person.
      

    

    Pending
      settlement or resolution of the issue(s), Client's non-payment of these items
      shall not constitute default by Client, and shall not entitle Contractor to
      suspend or delay its performance of Services for a period of one (1) year from
      the end of the ninety (90) day period of executive conferences; provided that
      Client continues to pay all undisputed invoices in accordance with the
      provisions of Section 9.6.   After expiration of such one (1) year
      period, Contractor may suspend its performance of services covered by the
      disputed item(s).

    

    10. REPRESENTATIONS
      AND WARRANTIES

    

    10.1  Authority
      and Non-Infringement. Contractor
      represents and warrants that Contractor has all rights and authority required
      to
      enter into this Agreement and each Work Order, and to perform the Services
      and
      furnish the Deliverables contemplated by this Agreement, free from all liens,
      claims, encumbrances, security interests and other restrictions. Subject to
      the
      applicable terms and conditions of this Agreement and the applicable Work Order,
      Client and Affiliates will be entitled to use and enjoy the benefit of all
      Services and Deliverables without adverse interruption or disturbance by
      Contractor or by any entity asserting a claim under or through Contractor.
      Contractor further represents and warrants that the Services, Deliverables
      and
      all other materials of whatsoever nature furnished under this Agreement, and
      the
      use thereof by Client or the Affiliates in accordance with the terms and
      conditions of this Agreement, will not infringe (whether directly,
      contributorily, by inducement or otherwise), misappropriate or violate the
      Intellectual Property Rights of any third party, or violate the laws,
      regulations or orders of any governmental or judicial authority. The sole and
      exclusive remedy for a breach of the warranty against infringement contained
      in
      this Section 10.1 is infringement indemnity set forth in Section
      14.

    

    10.2 Personal
      Dealings and Non-Subornation.
      Contractor warrants that no officer, director, employee of Client, or any of
      their immediate family members, (i) has received or will receive anything of
      value of any kind from Contractor or its Personnel in connection with this
      Agreement, or (ii) has a business relationship of any kind with Contractor
      or
      its Personnel. Contractor further warrants that Contractor has not and will
      not
      make (or offer to make) any payments to, or confer (or offer to confer) any
      benefit upon, any employee, agent or fiduciary of any third party, with the
      intent to influence the conduct of such employee, agent or fiduciary in any
      manner relating to the subject of this Agreement.

    

    10.3 Conformity
      to Specifications. Contractor
      warrants that at the time of delivery and thereafter throughout the applicable
      warranty period, each Deliverable will conform to the applicable Acceptance
      Criteria. If not specified by the Parties on the Work Order, the warranty period
      for a Deliverable performance shall be the ninety (90) day period commencing
      from the date Client accepts the Deliverable. In addition, the warranty period
      for a Deliverable will be extended by the aggregate time Client is unable to
      effectively use the Deliverable during the specified warranty period as a result
      of a Defect. If Contractor receives notice of a Deliverable Defect during the
      warranty period, then Contractor will (at no additional charge) correct the
      Defect. If Contractor is unable or unwilling to correct a Defect that has been
      identified by Client during the warranty period, then Client may terminate
      the
      applicable Work Order (in whole or in part) upon notice to Contractor, without
      financial liability or obligation (for the portion terminated).

    

    10.4 Standard
      of Service. Contractor
      warrants that the Services will be performed and the Deliverables will be
      prepared in a timely and professional manner, in conformity with standards
      generally accepted in the Software industry, by qualified and skilled
      individuals. If Contractor fails to provide the Services as warranted and Client
      so notifies Contractor within thirty (30) days after the date Contractor
      declares the Services to have been completed, then Contractor will re-perform
      the Services at no additional charge. If Contractor is unable or unwilling
      to
      re-perform the Services as warranted, then Client shall be entitled to recover
      the fees paid to Contractor for the deficient Services. 

    

    10.5 Disabling
      Devices. Contractor
      represents and warrants that prior to delivering any software to Client,
      Contractor will test the software and the media on which it is to be delivered
      with a current version of a leading anti-virus application, in efforts to
      detect, and if so detected, to eliminate, any computer code (sometimes referred
      to as “viruses” or “worms”) designed to damage, disrupt, disable, harm, or
      otherwise impede in any manner, the orderly operation of the software or any
      other software, data files, firmware, hardware, computer system or network.
      Contractor further represents and warrants that any software developed,
      delivered or installed by Contractor shall not contain any computer code or
      any
      other procedures, routines or mechanisms designed by Contractor, its Personnel
      or its licensors to: (i) disrupt, disable, harm or impair in any way such
      software’s (or any other software’s) orderly operation based on the elapsing of
      a period of time, exceeding an authorized number of copies, advancement to
      a
      particular date or other numeral (sometimes referred to as “time bombs”, “time
      locks”, or “drop dead” devices); (ii) cause such software to damage or corrupt
      any of Client’s or its Affiliates’ (or their respective customers’) data,
      storage media, programs, equipment or communications, or otherwise interfere
      with Client’s or its Affiliates’ operations, or (iii) permit Contractor, its
      Personnel, its licensors or any other third party to access such software (or
      Client’s or its Affiliates’ computer systems) for any reason (sometimes referred
      to as “traps”, “access codes” or “trap door” devices). Contractor will not
      unilaterally (i.e.,
      without appropriate judicial order) remove, deinstall, repossess, modify,
      delete, damage, deactivate, disable, or interfere with the software for any
      reason (including a dispute relating to this Agreement). 

    

    10.6 Favorable
      Provisions. Reserved.

    

    10.7 Disclaimer.
      EXCEPT
      FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT
      OR
      ESTABLISHED BY APPLICABLE LAW AS RIGHTS THAT CANNOT BE WAIVED OR LIMITED BY
      CONTRACT, CONTRACTOR DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES,
      INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
      PURPOSE.

    

    11. NON-EXCLUSIVE
      RIGHTS

    
      	 	 

    

      Nothing
      in this Agreement shall preclude or limit Contractor, Client or an Affiliate
      from independently acquiring or developing competitive products or services
      for
      itself or its customers, or from providing competitive products or services
      to
      its customers, so long as neither Contractor, Client nor Affiliate breaches
      the
      obligations (including the obligations of confidentiality and intellectual
      property) it has assumed under this Agreement.

    

    
      	
              12.

            	
              CONFIDENTIAL
                INFORMATION

            

    

    

    12.1 Contractor’s
      Confidential Information. Contractor’s
      “Confidential Information” means
      and refers to all materials furnished by Contractor that are expressly
      identified or marked by Contractor as “confidential”. In the event Contractor
      intends to supply Confidential Information for use in connection with a Project
      (for example, as part of a Deliverable), Contractor will provide Client with
      a
      written summary of such Confidential Information prior to Contractor’s
      disclosure thereof to Client. 

    

    12.2 Client’s
      Confidential Information. Client’s
      “Confidential Information” means and refers to all
      tangible or intangible information and materials, in any form or
      medium
      (and without regard to whether the information or materials are owned by Client
      or by a third party),
      whether furnished or disclosed to Contractor by Client or an Affiliate, or
      otherwise obtained, accessed or observed by Contractor from Client or an
      Affiliate, that satisfies
      at least one of the following criteria:

    

    
      	
              12.2.1

            	
              Information
                or materials related to Client’s, an Affiliates’, or any of their
                respective customer’s business, trade secrets,
                customers (including identities, characteristics and activities),
                business
                plans, strategies, forecasts or forecast assumptions, operations,
                methods
                of doing business, records, finances, assets, technology (including
                software, data bases, data processing or communications networking
                systems), data or information or materials that reveal research,
                technology, practices, procedures, processes, methodologies, know
                how, or
                other systems or controls by which Client’s or an Affiliate’s products,
                services, applications and methods of operations or doing business
                are
                developed, conducted or operated, and all information or materials
                derived
                therefrom or based thereon;

            

    

    
      	
              12.2.2

            	
              Information
                or materials designated or identified as confidential by Client or
                an
                Affiliate, whether by letter or by an appropriate proprietary stamp
                or
                legend, prior to or at the time such information or materials are
                disclosed by Client or an Affiliate to Contractor;
                

            

    

    
      	12.2.3  	
              Information
                disclosed orally or visually, or written or other form of tangible
                information or materials without an appropriate letter, proprietary
                stamp
                or legend, if it would be apparent to a reasonable person, familiar
                with
                Client’s (or an Affiliate’s) business and the industry in which it
                operates, that such information or materials are of a confidential
                or
                proprietary nature; or,

            

    

    
      	12.2.4  	
              Any
                non-public, personal, financial or identifying information of an
                individual, including Client’s or an Affiliate’s customers or employees
                (“Nonpublic Personal Information”).

            

    

    

    12.3 Duty
      of Care.
      The Party receiving (“Receiving Party”) Confidential Information of the other
      Party (“Disclosing Party”) will exercise at least the same degree of care with
      respect to the Disclosing Party’s Confidential Information that the Receiving
      Party exercises to protect its own Confidential Information; and, at a minimum,
      the Receiving Party will maintain adequate security measures to safeguard the
      Disclosing Party’s Confidential Information from unauthorized disclosure,
      access, use and misappropriation. Without limiting the generality of the
      foregoing, the Receiving Party will only use or reproduce the Disclosing Party’s
      Confidential Information to the extent necessary to enable the Receiving Party
      to fulfill its obligations under this Agreement, or in the case of Client,
      to
      exercise its rights as contemplated by this Agreement. In addition, the
      Receiving Party will disclose the Disclosing Party’s Confidential Information
      only to those of the Receiving Party’s (or in the case of Client, also to its
      Affiliates’) Personnel who have a “need to know” such Confidential Information
      (and only to the extent necessary) in order to fulfill the purposes contemplated
      by the Agreement. Prior to disclosing Client’s Confidential Information to any
      of its Personnel, Contractor will ensure that each of its Personnel who will
      be
      working on a Project is bound by a written Non-Disclosure and Work Product
      Assignment Agreement in the form attached as Appendix
      B,
      or in the form of non-disclosure and work product assignment agreement regularly
      used by Contractor, a copy of which is attached as Appendix
      B-1.
      Contractor will furnish executed originals of all such agreements to Client’s
      project manager (or such other representative as may be designated by the
      Client) prior to commencing any work hereunder. If the Receiving Party becomes
      aware of any threatened or actual unauthorized access to, use or disclosure
      of,
      or any inability to account for, the Disclosing Party’s Confidential
      Information, the Receiving Party will promptly notify the Disclosing Party
      thereof and will assist the Disclosing Party with its efforts to terminate
      such
      access, to curtail such threatened or actual unauthorized use or disclosure,
      or
      to recover such information or materials. The Receiving Party will be liable
      to
      the Disclosing Party for any non-compliance by its agents or contractors to
      the
      same extent it would be liable for non-compliance by its employees.

    

    12.4 Removal
      from Premises.
      Contractor will not remove or transmit Client’s Confidential Information from
      Client's premises without, in each case, obtaining Client’s express prior
      written consent. If any of Client’s Confidential Information must leave Client’s
      premises (through the mail, magnetic tape, line transmission or any other
      communication media) in order for Contractor to perform the Services, Contractor
      will use, and will cause its Personnel to use, the highest degree of care to
      safeguard such information from intrusion, tampering, theft, loss, and breaches
      of confidentiality. 

    

    12.5 Legends.
      Neither Party will not remove any copyright or other proprietary notice of
      confidentiality contained on or included in the other Party’s Confidential
      Information; and each Party will reproduce any such notice on any reproduction,
      modification or translation of the other Party’s Confidential
      Information.

    

    12.6 Exclusions.
      The obligations of confidentiality assumed under this Agreement shall not apply
      to the extent the Receiving Party can demonstrate, by clear and convincing
      evidence, that such information:

     

    
      	12.6.1  	
              is
                or has become generally known by persons engaged in the technology
                or
                financial services industries,
                without any breach by the Receiving Party of the provisions of this
                Agreement or any other applicable agreement between the
                Parties;

            

    

    
      	12.6.2  	
              was
                rightfully in the possession of the Receiving Party, without
                confidentiality restrictions, prior to such Party’s receipt pursuant to
                this Agreement;

            

    

    
      	12.6.3  	
              was
                rightfully acquired by the Receiving Party from a third party who
                was
                entitled to disclose such information, without confidentiality or
                proprietary restrictions;

            

    

    
      	12.6.4  	
              was
                independently developed by the Receiving Party without using or referring
                to the Disclosing Party’s Confidential Information;
                or,

            

    

    
      	12.6.5  	
              is
                subject to a written agreement pursuant to which the Disclosing Party
                authorized the Receiving Party to disclose the subject
                information. 

            

    

    

    12.7 Legally
      Required Disclosures. The
      obligations of confidentiality assumed under this Agreement shall not apply
      to
      the extent that the Receiving Party is required to disclose the Disclosing
      Party’s Confidential Information under
      any applicable law, regulation or an order
      from a court, regulatory agency or other governmental authority having competent
      jurisdiction,
      provided that the Receiving Party:

    

    
      	12.7.1  	
              promptly
                notifies the Disclosing Party of the order in order to provide the
                Disclosing Party an opportunity to seek a protective order;
                

            

    

    
      	12.7.2  	
              provides
                the Disclosing Party with reasonable cooperation in its efforts to
                resist
                the disclosure, upon reasonable request by the Disclosing Party and
                at the
                Disclosing Party’s expense; and,

            

    

    
      	12.7.3  	
              disclose
                only the portion of the Disclosing Party’s Confidential Information that
                is required to be disclosed under such law, regulation or
                order.

            

    

    

    12.8 Nonpublic
      Personal Information.
      Notwithstanding any other provision of this Agreement, to the extent Nonpublic
      Personal Information is, either intentionally or unintention-ally, disclosed
      to
      or otherwise obtained by Contractor in connection with the matters contemplated
      by this Agreement, Contractor will keep such Nonpublic Personal Information
      strictly confidential and strictly limit its use of such information to the
      purposes contemplated by this Agreement. Contractor agrees that Client shall
      have the right to conduct a review of the procedures used by Contractor to
      maintain the confidentiality of such Nonpublic Personal Information.

    

    12.8  Accounting
      for Confidential Information.
      Except as otherwise expressly provided in this Agreement, upon the request
      of
      the Disclosing Party at any time after the termination of this Agreement, the
      Receiving Party will return (or purge its systems and files of, and suitably
      account for) all tangible Confidential Information supplied to, or otherwise
      obtained by, the Receiving Party in connection with this Agreement. The
      Receiving Party will certify in writing that it has fully complied with its
      obligations under this Section within seven (7) days after its receipt of a
      request from the Disclosing Party for such a certification. For the avoidance
      of
      doubt, this Section
      12.9
      shall not be construed (i) to require Client to return any of Contractor’s
      Confidential Information that was furnished as part of, or in conjunction with,
      a Deliverable, or (ii) to limit either Party’s right to seek relief from damages
      that are caused by the other Party’s default.

    

    12.9 Insider
      Trading and Tipping Notice.
      The Contractor acknowledges that the federal securities laws, other applicable
      local laws, and the Client’s policies and procedures prohibit any person or
      entity that has received from the client material, nonpublic information about
      a
      company, from purchasing or selling securities of that company or from
      communicating such information to any other person or entity that may sell
      or
      purchase such securities.

    

    
      	
              13.

            	
              PUBLICITY

            

    

    

    Contractor
      will not disclose the identity of Client as a customer of Contractor or the
      existence, nature or terms of this Master Agreement or any Work Orders, without
      the prior written consent of Client, which Client may withhold in its sole
      discretion; except as required by applicable law or regulation. Neither Party
      will use the other Party’s proprietary indicia, trademarks, service marks, trade
      names, logos, symbols or brand names (collectively “Marks”), or otherwise refer
      to or identify the other Party in advertising, publicity releases, or
      promotional or marketing publications or correspondence to third parties
      without, in each case, securing the prior written consent of the other
      Party.

    

    14. INDEMNITY

    

    14.1 Infringement
      Indemnity.
      Contractor will defend, hold harmless and indemnify Client, its Affiliates
      and
      their Personnel (collectively, the “Indemnitees”) from and against any and all
      losses, claims, liabilities, costs and expenses (including taxes, fees, fines,
      penalties, interest, reasonable expenses of investigation and attorneys' fees
      and disbursements) as incurred (collectively "Damages") arising out of, or
      relating to, a claim by a third party that the Services, Deliverables or any
      other materials furnished by Contractor to Client (or that the use thereof)
      infringes (whether directly, contributorily, by inducement or otherwise),
      misappropriates or violates such
      third party's Intellectual Property Rights. Contractor’s indemnity obligation
      under this Section 14.1 shall not extend to claims based on: (i) an unauthorized
      modification of the Deliverables made by an Client where the Deliverables would
      not be infringing without such modification, (ii) customized portions of the
      Deliverables designed in accordance with written specifications provided by
      Client where the Deliverables would not be infringing but for their adherence
      to
      the Specifications provided by Client or (iii) Client’s continued use of
      allegedly infringing Deliverables where Contractor has provided Client with
      an
      updated, non-infringing, equally suitable, functionally equivalent and
      compatible version of the Deliverables.

    

    14.2 General
      Indemnity.
      Contractor will defend, hold harmless and indemnify the Indemnitees from and
      against all third-party claims for Damages arising out of, or relating
      to:

    

    
      	14.2.1  	
              breach
                of any obligation for which Contractor is responsible as employer
                or
                contractor of its Personnel;

            

    

    
      	14.2.2  	
              any
                breach by Contractor (or its Personnel) of the obligations assumed
                under,
                or the representations or warranties provided in, Sections
                10.5 and
                12
                of this Agreement;

            

    

    
      	14.2.3  	
              any
                gross negligence or willful misconduct of Contractor or its Personnel;
                or,

            

    

    
      	14.2.4  	
              any
                act or omission by Contractor that results in personal injury or
                death, or
                damage to property.

            

    

    

    14.3 Indemnification
      Procedures. If
      an Indemnitee seeks indemnification under this Agreement, the Indemnitee will:
      (i) give prompt notice to Contractor concerning the existence of the
      indemnifiable event; (ii) grant authority to Contractor to defend or settle
      any
      related action or claim; and, (iii) provide, at Contractor’s expense, such
      information, cooperation and assistance to Contractor as may be reasonably
      necessary for Contractor to defend or settle the claim or action. The
      Indemnitee’s failure to give prompt notice shall not constitute a waiver of the
      Indemnitee’s right to indemnification and shall affect Contractor’s
      indemnification obligations only to the extent that Contractor’s rights are
      materially prejudiced by such failure or delay. Notwithstanding anything to
      the
      contrary set forth herein, (i) the Indemnitee may participate, at its own
      expense, in any defense and settlement directly or through counsel of its
      choice, and (ii) Contractor will not enter into any settlement agreement on
      terms that would diminish the rights provided to the Indemnitee or increase
      the
      obligations assumed by the Indemnitee under this Agreement, without the prior
      written consent of the Indemnitee. If Contractor elects not to defend any claim,
      the Indemnitee will have the right to defend or settle the claim as it may
      deem
      appropriate, at the cost and expense of Contractor, and Contractor will promptly
      reimburse the Indemnitee for all costs, expenses, settlement amounts and other
      Damages.

    

    14.4 Mitigation
      of Damages.
      If any Deliverable becomes, or (in Contractor's opinion) is likely to become,
      the subject of any such third party claim, then Contractor (at its sole cost
      and
      expense) may either: (i) procure the right for the Client to continue using
      the
      Deliverable as contemplated hereunder; (ii) modify the Deliverable to render
      it
      non-infringing (provided such modification does not materially degrade the
      Deliverable’s functionality); or (iii) replace the Deliverable with equally
      suitable, functionally equivalent, compatible, non-infringing Deliverable.
      If
      none of the foregoing are commercially practicable despite Contractor using
      all
      reasonable efforts and if Client is not permitted to continue using the
      Deliverable, then Client shall be entitled to recover from Contractor the
      following. If Client is prohibited from using the Deliverable within two years
      after the date the Deliverable was accepted, then Client shall be entitled
      to
      recover an amount equal to all fees paid for services related to the
      Deliverable. If Client is prohibited from using the Deliverable more than two
      years after the date the Deliverable was accepted, then Client shall be entitled
      to recover an amount equal to a pro-rated portion of the fees paid for the
      Deliverable (with the pro-rated portion equal to the remaining book value based
      on a straight line five (5) year basis).

    

    14.5 Notification
      of 3rd
      Party Claims.
      Contractor will promptly notify Client concerning any threat, warning, claim
      or
      action against Contractor or its customers or suppliers of which Contractor
      has
      knowledge, that could have an adverse impact on Client's use of any Deliverable
      provided or made available to Client pursuant to this Agreement.

    

    

    
      	15.  	
              INSURANCE
                REQUIREMENTS

            

    

    

    15.1 Required
      Coverage.
      During the term of this Agreement and for so long as any Work Order has not
      yet
      been completed or terminated, Contractor will maintain, at its own expense,
      insurance coverage with limits of no less than those set forth below, and with
      insurers with a minimum A.M. Best Financial Strength rating of “A- (Excellent)”
and Financial Size rating of “X”, or equivalent ratings from other valid rating
      agencies and under forms of policies satisfactory to Client.

    

    
      	15.1.1  	
              Professional
                Liability Insurance (“Errors and Omissions”) in the minimum amount of
                $2,000,000 per occurrence, covering losses from any act, errors,
                omissions, negligence, breach of contract and/or misrepresentations
                related to Contractor’s obligations under this Agreement. This insurance
                shall be maintained for a period of at least two (2) years after
                completion of all Work Orders.

            

    

    
      	15.1.2  	
              Fidelity/Crime
                Insurance in the minimum amount of $2,000,000 per occurrence providing
                coverage for any loss sustained by Client or an Affiliate as a result
                of
                any dishonest act by Contractor’s officers, employees, agents or
                subcontractors (whether acting alone or in collusion with others),
                including but not limited to theft, forgery, alteration, or transfer
                of
                funds (electronically or otherwise). Such insurance must cover (i)
                property of the Contractor; (ii) property of others, which the Contractor
                holds in its care, custody and control; and (iii) property of others
                for
                which the Contractor is legally
                liable.

            

    

    
      	15.1.3  	
              Commercial
                General Liability including broad form contractual liability and
                personal
                injury endorsement, providing coverage against liability for bodily
                injury, death, and property damages in the minimum amount of $1,000,000
                per occurrence and no less than $2,000,000 annual
                aggregate.

            

    

    
      	15.1.4  	
              Automobile
                Liability in the minimum amount of $1,000,000 Combined Single Limit
                (“CSL”) per occurrence for bodily injury and property damage (covering
                owned, non-owned and hired vehicles).

            

    

    
      	15.1.5  	
              Workers
                Compensation insurance covering Contractor’s employees pursuant to
                applicable state laws and at the statutory limits required for each
                such
                state, and Employers Liability coverage in the minimum amount of
                $1,000,000 per loss.

            

    

    
      	15.1.6  	
              Umbrella/Excess
                Liability providing excess liability coverage in the minimum amount
                of
                $5,000,000 per occurrence, to supplement the primary coverage limits
                for
                Commercial General Liability, Automobile Liability and Employers
                Liability
                provided under the policies listed
                above.

            

    

    

    
      	15.2  	
              Certificates
                of Insurance.
                Contractor will deliver Certificates of Insurance to Client prior
                to the
                execution of the Master Agreement. Said certificate shall indicate
                that
                policies providing coverage and limits of insurance are in full force
                and
                effect. Each Certificate shall provide that no less than thirty (30)
                days
                notice will be given in writing to Client prior to cancellation,
                termination, or material alteration of any one of the policies. At
                least
                ten (10) days before the expiration of an insurance policy required
                hereunder, Contractor will deliver to Client a certificate of insurance
                attesting to the renewal of such insurance. In addition, each policy
                required pursuant to Subsections
                15.1.3, 15.1.4, 15.1.5
                (Employers Liability only) and 15.1.6
                shall name Client, Affiliates and assignees (suggest other parties
                if
                necessary) as additional insureds. Each policy required pursuant
                to
                Subsection
                15.1.2
                shall name Client, Affiliates and assignees as loss payees. Client’s
                acceptance of delivery of a Certificate of Insurance that does not
                conform
                to the requirements of this Section shall not relieve Contractor
                of its
                obligation to provide insurance conforming to the requirements hereof.
                

            

    

    

    15.3 No
      Limitation.
      The requirements set forth above as to types, limits and approval of insurance
      coverage to be maintained by Contractor will not in any manner limit the
      liabilities and obligations assumed by Contractor under this
      Agreement.

    

    
      	
              16.

            	
              LIMITATION
                OF LIABILITY

            

    

    

    EXCEPT
      TO THE EXTENT OTHERWISE EXPRESSLY PROVIDED IN THIS SECTION, NEITHER PARTY SHALL
      BE LIABLE TO THE OTHER PARTY (OR TO ANY PERSON OR ENTITY CLAIMING THROUGH THE
      OTHER PARTY) FOR LOST PROFITS OR FOR SPECIAL, INCIDENTAL, INDIRECT,
      CONSEQUENTIAL OR EXEMPLARY DAMAGES ARISING OUT OF OR IN ANY MANNER CONNECTED
      WITH THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, REGARDLESS OF THE FORM OF
      ACTION AND WHETHER OR NOT SUCH PARTY HAS BEEN INFORMED OF, OR OTHERWISE MIGHT
      HAVE ANTICIPATED, THE POSSIBILITY OF SUCH DAMAGES. NEITHER PARTY SHALL BE LIABLE
      FOR ANY (i) DIRECT DAMAGES IN EXCESS OF THE TOTAL AMOUNT OF FEES PAID TO
      CONTRACTOR UNDER THIS AGREEMENT OR (ii) DAMAGES ARISING FROM CLAIMS FOR WHICH
      EITHER PARTY HAS AGREED TO INDEMNIFY THE OTHER PARTY PURSUANT TO SECTION 14.2.2
      IN EXCESS OF THE TOTAL AMOUNT OF FEES PAID TO CONTRACTOR UNDER THIS
      AGREEMENT.THE LIMITATIONS OF LIABILITY SET FORTH IN THIS AGREEMENT SHALL NOT
      APPLY TO DAMAGES, (i) RESULTING FROM THE GROSS NEGLIGENCE, BAD FAITH OR WILLFUL
      MISCONDUCT OF A PARTY OR ITS PERSONNEL, (ii) STEMMING FROM PERSONAL INJURY,
      DEATH, OR PROPERTY DAMAGE CAUSED BY A PARTY OR ITS PERSONNEL, (iii) ARISING
      FROM
      CLAIMS FOR WHICH EITHER PARTY HAS AGREED TO INDEMNIFY THE OTHER PARTY PURSUANT
      TO SECTIONS 14.1 OR 14.2 ABOVE, OR (iv) ARISING FROM ANY BREACH BY CONTRACTOR
      OF
      ITS OBLIGATIONS SET FORTH IN SECTION 10.5 AND SECTION 12 HEREIN.

    

    17.  SUBCONTRACTORS
      

    

    Contractor
      will not use a subcontractor to perform Contractor’s obligations under this
      Agreement without obtaining Client’s prior written approval, which will not be
      unreasonably withheld or delayed. Client’s approval of a subcontractor shall not
      constitute a waiver of any rights Client may have based on Contractor’s
      representations and warranties. Contractor will be fully responsible for all
      acts and omissions of its subcontractors. Nothing in this Agreement shall be
      construed to create any contractual relationship between Client and any
      subcontractor, nor any obligation on the part of Client, to pay or to ensure
      the
      payment of any money due any subcontractor.

    

    18.  ASSIGNMENT
      

    

    Either
      party may, with notice to other party, assign this Agreement or any of its
      rights or interests hereunder, or delegate any of its obligations hereunder,
      to
      (i) an Affiliate, (ii) the assigning party’s successor pursuant to a merger,
      reorganization, consolidation or sale, or (iii) an entity that acquires all
      or
      substantially all of that portion of the Party’s assets or business. Except as
      otherwise provided above, neither Party may assign this Agreement nor any of
      its
      rights or interests hereunder, nor delegate any obligation to be performed
      hereunder, without the prior written consent of the other Party. Any attempted
      assignment or delegation in contravention of this Section shall be null and
      void, and of no force or effect. This Agreement shall be binding upon, and
      shall
      inure to the benefit of, the legal successors and permitted assigns of the
      Parties.

    

    
      	
              19.

            	
              NOTICES

            

    

    

    Any
      notice, demand or other communication (collectively “notice”) required or
      permitted under this Agreement shall be made in writing and shall be deemed
      to
      have been duly given (i) when delivered personally to the representative(s)
      designated to receive notices for the intended recipient, or (ii) when mailed
      by
      certified mail (return receipt requested) or sent by overnight courier to the
      representative(s) designated to receive notices for the intended recipient
      at
      the address set forth in the introductory paragraph of this Master Agreement
      or
      in the applicable Work Order, as appropriate. Notices concerning the Master
      Agreement shall be given to the person who signed the Master Agreement on behalf
      of the intended recipient. Notices concerning a Work Order shall be given to
      the
      intended recipient’s then current project manager. Any notice from Contractor
      that either (i) relates to the Master Agreement, or (ii) alleges Client
      committed a material breach, shall also be sent to Client’s General Counsel’s
      Office, to the attention of the managing attorney responsible for intellectual
      property and technology. Either Party may change its address(es) or
      representative(s) for receiving notices upon notice to the other. 

    

    
      	
              20.

            	
              COMPLIANCE
                WITH LAW 

            

    

    
      	 	 

    

    20.1 General.
      In performing its obligations under this Agreement, Contractor will comply,
      and
      will cause its Personnel to comply, with the requirements of all applicable
      laws, ordinances, regulations, codes and executive orders.

    

    20.2 Export
      Controls.
      Without limiting the generality of Section
      20.1,
      each Party specifically agrees to comply, and will cause its Personnel to
      comply, with the requirements of all applicable export laws and regulations,
      including but not limited to the U.S. Export Administration Regulations. Unless
      authorized by U.S. regulation or Export License, neither Party will export
      nor
      reexport, directly or indirectly, any software or technology received from
      the
      other Party, or allow the direct product thereof to be exported or reexported,
      directly or indirectly, to (a) any country in Country Group E:2 of the Export
      Administration Regulations of the Department of Commerce (see
      http://www.bxa.doc.gov) or any other country subject to sanctions administered
      by the Office of Foreign Assets Control (see http://www.treas.gov/ofac/); or
      (b)
      any non-civil (i.e. military) end-users or for any non-civil end-uses in any
      country in Country Group D:1 of the Export Administration Regulations, as
      revised from time to time. Each party understands that countries other than
      the
      U.S. may restrict the import or use of strong encryption products and may
      restrict exports, and each party agrees that it shall be solely responsible
      for
      compliance with any such import or use restriction. 

    

    21.  CHOICE
      OF LAW, JURISDICTION AND WAIVER OF JURY TRIAL

    

    21.1  Governing
      Law.
      The substantive laws of the State of New York shall in all respects govern
      this
      Agreement as though this Agreement was entered into, and was to be entirely
      performed within, the State of New York. The Parties expressly disclaim the
      applicability of, and waive any rights based upon, the Uniform Computer
      Information Transactions Act or the United Nations Convention on the Sale of
      Goods. For the avoidance of doubt, nothing stated in this Agreement will
      prejudice or limit the rights or remedies of either Party to enforce any award
      or decree under the laws of any jurisdiction where property or assets of the
      other Party may be located. 

    

    21.2 Jurisdiction.
      All claims or disputes arising out of or in connection with this Agreement
      shall
      be heard exclusively by any of the federal or state court(s) of competent
      jurisdiction located in the Borough of Manhattan, New York City, NY, USA. To
      that end, each Party irrevocably consents to the exclusive jurisdiction of,
      and
      venue in, such court(s), and waives any, (i) objection it may have to any
      proceedings brought in any such court, (ii) claim that the proceedings have
      been
      brought in an inconvenient forum, and (iii) right to object (with respect to
      such proceedings) that such court does not have jurisdiction over such Party.
      Without limiting the generality of the forgoing, Contractor specifically and
      irrevocably consents to personal and subject matter jurisdiction for such claims
      or disputes in the federal or state court sitting in New York City, NY, USA,
      and
      to the service of process in connection with any such claim or dispute by the
      mailing thereof by registered or certified mail, postage prepaid to Contractor,
      at the address for notice set forth in, or designated pursuant to, this
      Agreement.

    

    21.3 WAIVER
      OF JURY TRIAL.
      CONTRACTOR AND CLIENT HEREBY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY
      PROCEEDING OR LITIGATION BROUGHT AGAINST THE OTHER WITH RESPECT TO THIS
      AGREEMENT OR CONTRACTOR'S PERFORMANCE OF SERVICES.

    

    22.  REMEDIES

    

    22.1 Equitable
      Relief.
      Contractor and Client each acknowledge that the failure to perform their
      respective duties under Sections
      12 or 13 may
      cause the other Party to suffer irreparable injury for which the injured Party
      will not have an adequate remedy available at law. Accordingly, the injured
      Party may seek to obtain injunctive or other equitable relief to prevent or
      curtail any such breach, threatened or actual, without posting a bond or
      security and without prejudice to such other rights as may be available under
      this Agreement or under applicable law. For purposes of this Agreement,
      "equitable relief" means and includes those remedies traditionally and
      historically granted by courts of equity, including without limitation,
      injunction, attachment, declaratory relief, lis pendens, receivership and
      replevin. 

    

    22.2 Recovery
      of Fees.
      If Client terminates a Work Order pursuant to Section
      6.3 or
      Section 10.3,
      then Client will be entitled to recover from Contractor all amounts paid by
      Client pursuant to the Work Order on account of (i) the defective Deliverable,
      and (ii) the Services or other products furnished by Contractor to Client in
      conjunction with such Deliverable, that Client is unable to utilize effectively
      or completely as a result of Contractor’s failure to fulfill (in a timely
      manner) its obligation to furnish a conforming Deliverable or to correct the
      Defect.

    

    22.3 Cumulative
      Remedies and Off Sets.
      Except as otherwise expressly provided in this Agreement, all remedies in this
      Agreement are cumulative and in addition to (not in lieu of) any other remedies
      available to a Party at law or in equity. In the event of a claim by Client
      for
      loss or damages for which Contractor is responsible, Client shall be entitled
      to
      adjust the amounts claimed against future or outstanding payments due, or which
      may become due, to Contractor. 

    

    23. WAIVER
      

    

    No
      course of dealing, failure by either Party to require the strict performance
      of
      any obligation assumed by the other hereunder, or failure by either Party to
      exercise any right or remedy to which it is entitled, shall constitute a waiver
      or cause a diminution of the obligations or rights provided under this
      Agreement. No provision of this Agreement shall be deemed to have been waived
      by
      any act or knowledge of either Party, but only by a written instrument signed
      by
      a duly authorized representative of the Party to be bound thereby. Waiver by
      either Party of any default shall not constitute a waiver of any other or
      subsequent default.

    

    24.  FORCE
      MAJEURE 

    

    A
      Party will be excused from a delay in performing, or a failure to perform,
      its
      obligations under this Agreement to the extent such delay or failure is caused
      by the occurrence of any contingency beyond the reasonable control, and without
      any fault, of such Party. In such event, the performance times shall be extended
      for a period of time equivalent to the time lost because of the excusable delay.
      However, if an excusable delay continues more than thirty (30) days, the Party
      not relying on the excusable delay may, at its option, terminate the affected
      Work Order(s) in whole or in part, upon notice to the other Party. In order
      to
      avail itself of the relief provided in this Section for an excusable delay,
      the
      Party must act with due diligence to remedy the cause of, or to mitigate or
      overcome, such delay or failure. For purposes of this Section, the phrase “due
      diligence” shall, at a minimum, require Contractor to maintain a contingency
      plan (and provide evidence of its current and periodic testing if requested
      by
      Client) for the continuation of business so that despite any disruption in
      Contractor’s ability to fulfill its service obligations from any particular
      location or through the efforts of any particular individuals, Contractor will
      be able to fulfil its service obligations from an alternative/backup
      location.

    

    25. SOLICITING
      FOR HIRE

    

    Neither
      party will not directly or indirectly solicit any employee of the other party
      for employment or services while a Work Order is in effect, nor during the
      twelve (12) month period following the termination of the Work Order. For the
      purposes of this Section, the advertisement of employment opportunities by
      a
      Party in any public forum (including magazines, trade journals, publicly
      accessible internet sites, classified advertisements, or job fairs open to
      the
      public) shall not be considered "solicitation", and the hiring of an individual
      as a result of his or her response to such a general employment advertisement
      or
      in response to his or her unsolicited employment inquiry shall not constitute
      a
      breach of this Agreement.

    

    26. CONSTRUCTION

    

    26.1  Inconsistencies.
      In the event of any inconsistency between the provisions of this Master
      Agreement and any Work Order, the provisions of the Work Order shall govern
      for
      purposes of such Work Order. 

    

    26.2  Modification.
      The terms, conditions, covenants and other provisions of this Agreement may
      hereafter be modified, amended, supplemented or otherwise changed only by a
      written instrument (excluding e-mail or similar electronic transmissions) that
      specifically purports to do so and is physically executed by a duly authorized
      representative of each Party. 

    

    26.3  Severability.
      If a court of competent jurisdiction declares any provision of this Agreement
      to
      be invalid, unlawful or unenforceable as drafted, the Parties intend that such
      provision be amended and construed in a manner designed to effectuate the
      purposes of the provision to the fullest extent permitted by law. If such
      provision cannot be so amended and construed, it shall be severed, and the
      remaining provisions shall remain unimpaired and in full force and effect to
      the
      fullest extent permitted by law. 

    

    26.4  Survival.
      The provisions of this Agreement that, by their nature and content, must survive
      the completion, rescission, termination or expiration of this Agreement in
      order
      to achieve the fundamental purposes of this Agreement (including any licenses
      expressly granted to Client by Contractor under this Agreement), shall so
      survive and continue to bind the Parties.

    

    26.5  Counterparts.
      This Agreement may be executed in counterparts, each of which shall be deemed
      to
      be an original, and all of which together shall constitute one
      instrument. 

    

    27.  AUDITED
      FINANCIAL STATEMENTS 

    

    Upon
      Client’s request, Contractor will provide a completed audited statement of the
      financial condition of Contractor’s organization, including (i) audited year-end
      results for the three (3) previous years, including revenues, expenses, net
      income, total assets, liabilities and footnotes; and (ii) the most recent
      financial interim statement.

     

    28. COMPLETE
      UNDERSTANDING

    

    This
      Agreement (together with the schedules, Work Orders, and other appendices
      attached hereto or specifically incorporated herein by reference) constitutes
      the complete understanding of the Parties with regard to the subject matter
      hereof. This Agreement supersedes all prior or contemporaneous agreements,
      discussions, negotiations, promises, proposals, representations, and
      understandings (whether written or oral) between the Parties with regard to
      the
      subject matter hereof. Contractor specifically acknowledges and agrees that
      it
      did not enter into this Agreement in reliance upon any agreement, promise,
      representation, or understanding made by or on behalf of Client that is not
      contained herein.

    

    IN
      WITNESS WHEREOF,
      the Parties hereto, through their duly authorized officers, have executed this
      Master Professional Services Agreement as of the Commencement Date designated
      above.

    

    
      	
              Chordiant
                Software, Inc. 

            	 	
              Citicorp
                Credit Services, Inc. (USA)

            
	
              By:

            	
              /s/
                Kelly Hicks

            	 	
              By:

            	
              /s/
                Mitchell J. Habib

            
	
              Name:

            	
              Kelly
                Hicks

            	 	
              Name:

            	
              Mitchell
                J. Habib

            
	
              Title:

            	
              Vice
                President, Finance

            	 	
              Title:

            	
              CIO

            
	
              Date:

            	
              June
                6, 2006

            	 	
              Date:

            	
              June
                6, 2006

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

    WORK
      ORDER

    

    
      	
              Work
                Order #:

            	 
	
              Effective
                Date:

            	 

    

    

    THIS
      WORK ORDER is
      entered as of the Effective Date designated above, by and between Contractor
      and
      the Client designated below. The Parties hereto acknowledge that they are
      entering into this Work Order pursuant to the provisions of the Master
      Professional Services Agreement dated as of __________________, between
      Contractor and CITIGROUP
      ENTITY THAT SIGNED MASTER. 
      The Parties further acknowledge and agree that the provisions of the Master
      Professional Services Agreement shall apply to this Work Order as though such
      provisions were set forth herein in their entirety.

    

    
      	
              Party:

            	
              CONTRACTOR

            	
              CLIENT

            
	
              Name:

            	 	 
	
              Address:

            	 	 
	
              State
                of Incorporation:

            	 	 

    

    

    

    
      	
              Project
                Name:

            

    

    

    
      	
              Commencement
                Date:

            	 	
              Completion
                Date:

            	 

    

    

    
      	
              Project
                Managers:

            	
              For
                Contractor

            	
              For
                Client

            
	 
	
              Address:

            	 	 
	 	 	 
	
              Phone:

            	 	 
	 	 	 
	
              e-mail:

            	 	 

    

    

    
      	
              Description
                of Services To Be Performed
                (Add attachment if needed.):

            
	 
	 

    

    

    
      	
              Description
                of Deliverables
                (Add attachment if needed.):

            
	 
	 
	 

    

    

    
      	
              Deliverable
                Milestones (Add
                attachment if needed.):

            
	 
	 	
              DATE:

            	 
	 	
              DATE:

            	 
	 	
              DATE:

            	 

    

    

    

    
      	
              Acceptance
                Criteria (Attach
                Specifications and other criteria if applicable.)

            
	 
	 

    

    

    

    
      	
              Warranty
                Period:

            	 

    

    

    
      	
              Basis
                for Determining Fee

            
	 
	
              Time
                and Material Rates:

            	 
	 
	
              Estimated
                Total Fees 

            	 
	
              Estimated
                Total Expenses

            	 
	
              Estimated
                Total Cost*

            	 
	
              The
                total cost shown above may not be exceeded without the prior written
                approval of Client. Unless the fee basis is a firm fixed price, Client
                is
                under no obligation to spend any minimum amount.

            
	 
	
              Fixed
                Price Fee:

            	 

    

    

    
      	
              Billing
                Address:

            	 

    

    

    
      	
              Contractor’s
                Personnel: 

            
	 
	
              Number
                of Personnel

            	
              Skill
                Level

            	
              Service
                Location

            
	 
	 	 	 
	 	 	 

    

    

    
      	
              Additional
                Terms and Conditions:

               

               

               

              Ownership
                of Deliverables (if different than provided in Section
                7):

            
	 
	 

    

    

    IN
      WITNESS WHEREOF,
      the Parties hereto, through their duly authorized officers, have executed this
      Work Order to the Master Professional Services Agreement as of the Effective
      Date designated above.

    

    
      	
              Contractor:
                

            	 	
              Client:
                

            
	
              By:

            	 	 	
              By:

            	 
	
              Name:

            	 	 	
              Name:

            	 
	
              Title:

            	 	 	
              Title:

            	 
	
              Date:

            	 	 	
              Date:

            	 

    

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Appendix
      B-1

     

    CHORDIANT
      SOFTWARE, INC.

     

    EMPLOYEE
      PROPRIETARY INFORMATION

    AND
      INVENTIONS AGREEMENT

     

    In
      consideration of my employment or continued employment by CHORDIANT
      SOFTWARE, INC. (the
      "Company"),
      and the compensation now and hereafter paid to me, I hereby agree as
      follows:

    

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    
      	1.  	
              Nondisclosure

            

    

     

    1.1  Recognition
      of Company's Rights; Nondisclosure.
      At all times during my employment and thereafter, I will hold in strictest
      confidence and will not disclose, use, lecture upon or publish any of the
      Company's Proprietary Information (defined below), except as such disclosure,
      use or publication may be required in connection with my work for the Company,
      or unless an officer of the Company expressly authorizes such in writing. I
      will
      obtain Company's written approval before publishing or submitting for
      publication any material (written, verbal, or otherwise) that relates to my
      work
      at Company and/or incorporates any Proprietary Information. I hereby assign
      to
      the Company any rights I may have or acquire in such Proprietary Information
      and
      recognize that all Proprietary Information shall be the sole property of the
      Company and its assigns.

     

    1.2  Proprietary
      Information. The
      term "Proprietary
      Information"
      shall mean any and all confidential and/or proprietary knowledge, data or
      information of the Company. By way of illustration but not limitation,
      "Proprietary
      Information"
      includes (a) trade secrets, inventions, mask works, ideas, processes,
      formulas, source and object codes, data, programs, other works of authorship,
      know-how, improvements, discoveries, developments, designs and techniques
      (hereinafter collectively referred to as "Inventions");
      and (b) information regarding plans for research, development, new
      products, marketing and selling, business plans, budgets and unpublished
      financial statements, licenses, prices and costs, suppliers and customers;
      and
      (c) information regarding the skills and compensation of other employees of
      the
      Company. Notwithstanding the foregoing, it is understood that, at all such
      times, I am free to use information which is generally known in the trade or
      industry, which is not gained as result of a breach of this Agreement, and
      my
      own, skill, knowledge, know-how and experience to whatever extent and in
      whichever way I wish. 

     

    1.3  Third
      Party Information.
      I
      understand, in addition, that the Company has received and in the future will
      receive from third parties confidential or proprietary information
      ("Third
      Party Information")
      subject to a duty on the Company's part to maintain the confidentiality of
      such
      information and to use it only for certain limited purposes. During the term
      of
      my employment and thereafter, I will hold Third Party Information in the
      strictest confidence and will not disclose to anyone (other than Company
      personnel who need to know such information in connection with their work for
      the Company) or use, except in connection with my work for the Company, Third
      Party Information unless expressly authorized by an officer of the Company
      in
      writing.

     

    1.4  No
      Improper Use of Information of Prior Employers and Others.
      During my employment by the Company I will not improperly use or disclose any
      confidential information or trade secrets, if any, of any former employer or
      any
      other person to whom I have an obligation of confidentiality, and I will not
      bring onto the premises of the Company any unpublished documents or any property
      belonging to any former employer or any other person to whom I have an
      obligation of confidentiality unless consented to in writing by that former
      employer or person. I will use in the performance of my duties only information
      which is generally known and used by persons with training and experience
      comparable to my own, which is common knowledge in the industry or otherwise
      legally in the public domain, or which is otherwise provided or developed by
      the
      Company.

     

    
      	2.  	
              Assignment
                of Inventions.

            

    

     

    2.1  Proprietary
      Rights.
      The term "Proprietary
      Rights"
      shall mean all trade secret, patent, copyright, mask work and other intellectual
      property rights throughout the world. 

     

    2.2  Prior
      Inventions.
      Inventions, if any, patented or unpatented, which I made prior to the
      commencement of my employment with the Company are excluded from the scope
      of
      this Agreement. To preclude any possible uncertainty, I have set forth on
Exhibit B
      (Previous
      Inventions) attached hereto a complete list of all Inventions that I have,
      alone
      or jointly with others, conceived, developed or reduced to practice or caused
      to
      be conceived, developed or reduced to practice prior to the commencement of
      my
      employment with the Company, that I consider to be my property or the property
      of third parties and that I wish to have excluded from the scope of this
      Agreement (collectively referred to as "Prior
      Inventions").
      If disclosure of any such Prior Invention would cause me to violate any prior
      confidentiality agreement, I understand that I am not to list such Prior
      Inventions in Exhibit B
      but am only to disclose a cursory name for each such invention, a listing of
      the
      party(ies) to whom it belongs and the fact that full disclosure as to such
      inventions has not been made for that reason. A space is provided on
Exhibit
      B
      for such purpose. If no such disclosure is attached, I represent that there
      are
      no Prior Inventions. If, in the course of my employment with the Company, I
      incorporate a Prior Invention into a Company product, process or machine, the
      Company is hereby granted and shall have a nonexclusive, royalty-free,
      irrevocable, perpetual, worldwide license (with rights to sublicense through
      multiple tiers of sublicensees) to make, have made, modify, use and sell such
      Prior Invention. Notwithstanding the foregoing, I agree that I will not
      incorporate, or permit to be incorporated, Prior Inventions in any Company
      Inventions without the Company's prior written consent.

     

    2.3  Assignment
      of Inventions.
      Subject to Sections 2.4, and 2.6, I hereby assign and agree to assign in the
      future (when any such Inventions or Proprietary Rights are first reduced to
      practice or first fixed in a tangible medium, as applicable) to the Company
      all
      my right, title and interest in and to any and all Inventions (and all
      Proprietary Rights with respect thereto) whether or not patentable or
      registrable under copyright or similar statutes, made or conceived or reduced
      to
      practice or learned by me, either alone or jointly with others, during the
      period of my employment with the Company. Inventions assigned to the Company,
      or
      to a third party as directed by the Company pursuant to this Section 2, are
      hereinafter referred to as "Company
      Inventions."
      

     

    2.4  Nonassignable
      Inventions.
      This Agreement does not apply to an Invention which qualifies fully as a
      nonassignable Invention under Section 2870 of the California Labor Code
      (hereinafter "Section 2870").
      I have reviewed the notification on Exhibit
      A
      (Limited Exclusion Notification) and agree that my signature acknowledges
      receipt of the notification.

     

    2.5  Obligation
      to Keep Company Informed.
      During the period of my employment and for six (6) months after termination
      of
      my employment with the Company, I will promptly disclose to the Company fully
      and in writing all Inventions authored, conceived or reduced to practice by
      me,
      either alone or jointly with others. In addition, I will promptly disclose
      to
      the Company all patent applications filed by me or on my behalf within a year
      after termination of employment. At the time of each such disclosure, I will
      advise the Company in writing of any Inventions that I believe fully qualify
      for
      protection under Section 2870; and I will at that time provide to the
      Company in writing all evidence necessary to substantiate that belief. The
      Company will keep in confidence and will not use for any purpose or disclose
      to
      third parties without my consent any confidential information disclosed in
      writing to the Company pursuant to this Agreement relating to Inventions that
      qualify fully for protection under the provisions of Section 2870. I will
      preserve the confidentiality of any Invention that does not fully qualify for
      protection under Section 2870.

     

                        2.6  Government
      or Third Party.
      I
      also agree to assign all my right, title and interest in and to any particular
      Company Invention to a third party, including without limitation the United
      States, as directed by the Company.

     

    2.7  Works
      for Hire.
      I
      acknowledge that all original works of authorship which are made by me (solely
      or jointly with others) within the scope of my employment and which are
      protectable by copyright are "works made for hire," pursuant to United States
      Copyright Act (17 U.S.C., Section 101).

     

    2.8  Enforcement
      of Proprietary Rights.
      I
      will assist the Company in every proper way to obtain, and from time to time
      enforce, United States and foreign Proprietary Rights relating to Company
      Inventions in any and all countries. To that end I will execute, verify and
      deliver such documents and perform such other acts (including appearances as
      a
      witness) as the Company may reasonably request for use in applying for,
      obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary
      Rights and the assignment thereof. In addition, I will execute, verify and
      deliver assignments of such Proprietary Rights to the Company or its designee.
      My obligation to assist the Company with respect to Proprietary Rights relating
      to such Company Inventions in any and all countries shall continue beyond the
      termination of my employment, but the Company shall compensate me at a
      reasonable rate after my termination for the time actually spent by me at the
      Company's request on such assistance.

     

    In
      the event the Company is unable for any reason, after reasonable effort, to
      secure my signature on any document needed in connection with the actions
      specified in the preceding paragraph, I hereby irrevocably designate and appoint
      the Company and its duly authorized officers and agents as my agent and attorney
      in fact, which appointment is coupled with an interest, to act for and in my
      behalf to execute, verify and file any such documents and to do all other
      lawfully permitted acts to further the purposes of the preceding paragraph
      with
      the same legal force and effect as if executed by me. I hereby waive and
      quitclaim to the Company any and all claims, of any nature whatsoever, which
      I
      now or may hereafter have for infringement of any Proprietary Rights assigned
      hereunder to the Company.

     

    
      	3.  	
              Records. I
                agree to keep and maintain adequate and current records (in the form
                of
                notes, sketches, drawings and in any other form that may be required
                by
                the Company) of all Proprietary Information developed by me and all
                Inventions made by me during the period of my employment at the Company,
                which records shall be available to and remain the sole property
                of the
                Company at all times.

            

    

     

    
      	4.  	
              Additional
                Activities.
                I agree that during the period of my employment by the Company I
                will not,
                without the Company's express written consent, engage in any employment
                or
                business activity which is competitive with, or would otherwise conflict
                with, my employment by the Company. I agree further that for the
                period of
                my employment by the Company and for one (l) year after the date
                of
                termination of my employment with the Company I will not induce any
                employee of the Company to leave the employ of the Company. I agree
                further that for the period of my employment with the Company and
                for one
                (1) year after the date of termination of my employment with the
                Company,
                I will not solicit the business of any client or customer of the
                Company
                (other than on behalf of the Company).

            

    

     

    5.  No
      Conflicting Obligation.
      I
      represent that my performance of all the terms of this Agreement and as an
      employee of the Company does not and will not breach any agreement to keep
      in
      confidence information acquired by me in confidence or in trust prior to my
      employment by the Company. I have not entered into, and I agree I will not
      enter
      into, any agreement either written or oral in conflict herewith.

     

    6.  Return
      of Company Documents.
      When I leave the employ of the Company, I will deliver to the Company any and
      all drawings, notes, memoranda, specifications, devices, formulas, and
      documents, together with all copies thereof, and any other material containing
      or disclosing any Company Inventions, Third Party Information or Proprietary
      Information of the Company. I further agree that any property situated on the
      Company's premises and owned by the Company, including disks and other storage
      media, filing cabinets or other work areas, is subject to inspection by Company
      personnel at any time with or without notice. Prior to leaving, I will cooperate
      with the Company in completing and signing the Company's termination
      statement.

     

    7.  Legal
      and Equitable Remedies.
      Because my services are personal and unique and because I may have access to
      and
      become acquainted with the Proprietary Information of the Company, the Company
      shall have the right to enforce this Agreement and any of its provisions by
      injunction, specific performance or other equitable relief, without bond and
      without prejudice to any other rights and remedies that the Company may have
      for
      a breach of this Agreement.

     

    8.  Notices.
      Any notices required or permitted hereunder shall be given to the appropriate
      party at the address specified below or at such other address as the party
      shall
      specify in writing. Such notice shall be deemed given upon personal delivery
      to
      the appropriate address or if sent by certified or registered mail, three (3)
      days after the date of mailing.

     

    9.  Notification
      of New Employer.
      In the event that I leave the employ of the Company, I hereby consent to the
      notification of my new employer of my rights and obligations under this
      Agreement.

     

    10.  General
      Provisions.

     

    10.1  Governing
      Law; Consent to Personal Jurisdiction.
      This Agreement will be governed by and construed according to the laws of the
      State of California, as such laws are applied to agreements entered into and
      to
      be performed entirely within California between California residents. I hereby
      expressly consent to the personal jurisdiction of the state and federal courts
      located in Santa Clara County, California for any lawsuit filed there against
      me
      by Company arising from or related to this Agreement.

     

    10.2  Severability.
      In case any one or more of the provisions contained in this Agreement shall,
      for
      any reason, be held to be invalid, illegal or unenforceable in any respect,
      such
      invalidity, illegality or unenforceability shall not affect the other provisions
      of this Agreement, and this Agreement shall be construed as if such invalid,
      illegal or unenforceable provision had never been contained herein. If moreover,
      any one or more of the provisions contained in this Agreement shall for any
      reason be held to be excessively broad as to duration, geographical scope,
      activity or subject, it shall be construed by limiting and reducing it, so
      as to
      be enforceable to the extent compatible with the applicable law as it shall
      then
      appear.

     

    10.3  Successors
      and Assigns.
      This Agreement will be binding upon my heirs, executors, administrators and
      other legal representatives and will be for the benefit of the Company, its
      successors, and its assigns.

     

    10.4  Survival.
      The provisions of this Agreement shall survive the termination of my employment
      and the assignment of this Agreement by the Company to any successor in interest
      or other assignee.

     

    10.5  Employment.
      I
      agree and understand that nothing in this Agreement shall confer any right
      with
      respect to continuation of employment by the Company, nor shall it interfere
      in
      any way with my right or the Company's right to terminate my employment at
      any
      time, with or without cause.

     

    10.6  Waiver.
      No waiver by the Company of any breach of this Agreement shall be a waiver
      of
      any preceding or succeeding breach. No waiver by the Company of any right under
      this Agreement shall be construed as a waiver of any other right. The Company
      shall not be required to give notice to enforce strict adherence to all terms
      of
      this Agreement.

     

    10.7  Entire
      Agreement.
      The obligations pursuant to Sections 1 and 2 of this Agreement shall apply
      to
      any time during which I was previously employed, or am in the future employed,
      by the Company as a consultant if no other agreement governs nondisclosure
      and
      assignment of inventions during such period. This Agreement is the final,
      complete and exclusive agreement of the parties with respect to the subject
      matter hereof and supersedes and merges all prior discussions between us. No
      modification of or amendment to this Agreement, nor any waiver of any rights
      under this Agreement, will be effective unless in writing and signed by the
      party to be charged. Any subsequent change or changes in my duties, salary
      or
      compensation will not affect the validity or scope of this Agreement.

     

    This
      Agreement shall be effective as of the first day of my employment with the
      Company, namely: _______________, 20__.

     

    I
      have read this Agreement carefully and understand its terms. I have completely
      filled out Exhibit B to this Agreement.

     

    Dated:
      ___________

     

    (Signature)

     

    (Printed
      Name)

     

    Accepted
      and Agreed To:

     

    CHORDIANT
      SOFTWARE, INC. 

     

    By:

     

    Title:

     

    (Address)

     

     

     

    Dated:
      _______

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

     

    LIMITED
      EXCLUSION NOTIFICATION

     

    This
      is to notify you
      in accordance with Section 2872 of the California Labor Code that the foregoing
      Agreement between you and the Company does not require you to assign or offer
      to
      assign to the Company any invention that you developed entirely on your own
      time
      without using the Company's equipment, supplies, facilities or trade secret
      information except for those inventions that either:

     

    1.  Relate
      at the time of conception or reduction to practice of the invention to the
      Company's business, or actual or demonstrably anticipated research or
      development of the Company;

     

    2.  Result
      from any work performed by you for the Company.

     

    To
      the extent a provision in the foregoing Agreement purports to require you to
      assign an invention otherwise excluded from the preceding paragraph, the
      provision is against the public policy of this state and is
      unenforceable.

     

    This
      limited exclusion does not apply to any patent or invention covered by a
      contract between the Company and the United States or any of its agencies
      requiring full title to such patent or invention to be in the United
      States.

     

    I
      acknowledge receipt of
      a copy of this notification.

     

    By: 

     (Printed
      Name of Employee)

     

    Date: 

    Witnessed
      by:

     

     

    (Printed
      Name of Representative)

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

     

    TO:  CHORDIANT
      SOFTWARE, INC.

     

    FROM:     

     

    DATE:     

     

    SUBJECT: Previous
      Inventions 

     

    1. Except
      as listed in Section 2 below, the following is a complete list of all inventions
      or improvements relevant to the subject matter of my employment by CHORDIANT
      SOFTWARE, INC. (the
      "Company")
      that have been made or conceived or first reduced to practice by me alone or
      jointly with others prior to my engagement by the Company:

     

    For
      Check Boxes: 

     

    1.
      Double-click on Check Box 

    2.
      Click
      on “Checked”
      in
Default
      Value,
      click
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      want to remove a check mark: 

    double-click
      on the Check Box 

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      in
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      does not affect pagination when you print the document) 

    No
      inventions or improvements.

     

    See
      below:

     

     

     

     

     

     

     

    
      	 	
              Additional
                sheets attached.

            

    

     

    2. Due
      to a prior confidentiality agreement, I cannot complete the disclosure under
      Section 1 above with respect to inventions or improvements generally listed
      below, the proprietary rights and duty of confidentiality with respect to which
      I owe to the following party(ies):

     

    Invention
      or Improvement Party(ies)  Relationship

     

    1.      

     

    2.      

     

    3.      

     

    
      	 	
              Additional
                sheets attached.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      C

    RESERVED

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Addendum
      #1

    

    APPLICATION
      DEVELOPMENT ADDENDUM

    

    
      	
              Application
                Name:

            	
              Collections

            
	
              Effective
                Date:

            	
              April
                3, 2006

            

    

    

    THIS
      APPLICATION DEVELOPMENT ADDENDUM #1 is
      entered as of the Effective Date designated above, by and between Contractor
      and
      the Client designated below. The Parties hereto acknowledge that they are
      entering into this Addendum pursuant to the provisions of the Master
      Professional Services Agreement dated as of April 3, 2006, between Contractor
      and Citicorp Credit Services, Inc. (USA). 
      The Parties further acknowledge and agree that except as otherwise provided
      below the provisions of the Master Professional Services Agreement and the
      meanings of capitalized terms to the extent set forth therein shall apply to
      this Addendum as though such provisions were set forth herein in their entirety.
      

    

    
      	
              Party:

            	
              CONTRACTOR

            	
              CLIENT

            
	
              Name:

            	
              Chordiant
                Software, Inc.

            	
              Citicorp
                Credit Services, Inc. (USA)

            
	
              Address:

            	
              20400
                Stevens Creek Blvd.

              Cupertino,
                CA 95014

            	
              14000
                Citi Cards Way

              Jacksonville,
                FL 32258

            
	
              State
                of Incorporation:

            	
              Delaware

            	
              Delaware

            

    

    

    

    
      	
              Application
                Name:
                Collections

            

    

    (the
      “Application”)

    

    Client
      Specific Intellectual Property Rights:

    (“Client
      Specific IPR”)

    

    
      	·  	
              Specific
                Analytics and Rules previously developed and/or to be developed by
                Client

            

    

    
      	·  	
              Unique
                Processes that are not Industry Standard previously developed and/or
                to be
                developed by Client

            

    

    

    The
      parties acknowledge that the Application is under software development by
      Contractor as of the date of this Addendum under the Agreement between the
      Parties dated April 3, 2006, and that Client is a cooperative and contributing
      party to such Application software development (the “Project”). The parties
      acknowledge that the Application developed hereunder will contain both generic
      elements and Client-specific elements. It is the Parties’ intention that
      Contractor will be able to market, distribute and sell the generic elements
      of
      the Application as a comprehensive application product to its other customers.
      It is also the parties’ intention that the proprietary elements of Client’s
      Application channel including without limitation Client Specific IPR will not
      be
      incorporated into the Application product distributed by Contractor. With the
      exception of Client Specific IPR, all Application software will solely owned
      by
      Contractor. 

    

    With
      respect to the development and ownership of the Application, the following
      terms
      shall apply in lieu of Sections 7.1, 7.2, 7.3 and 7.4 of the Master Professional
      Services Agreement:

    

    1. Application
      Work Product.
      The phrase “Application Work Product” shall mean and include the Deliverables,
      all ideas, concepts, know-how, techniques, inventions, discoveries,
      improvements, specifications, designs, methods, devices, systems, reports,
      studies, computer software (in object or source code), programming and other
      documentation, flow charts, diagrams and all other information or tangible
      material of any nature whatsoever (in any medium and in any stage of development
      or completion) relating to the subject matter of this Addendum or the applicable
      Work Order (if any), that are conceived, designed, practiced, prepared, produced
      or developed by Contractor or any of its Personnel during the course of the
      Project; provided however that the Client Specific IPR shall not be part of
      the
      Application Work Product. To the fullest extent permitted under law, all
      Application Work Product shall be the property of Contractor. To the extent
      Client has participated in the development of the Application Work Product,
      Client hereby irrevocably and exclusively assigns, transfers and conveys to
      Contractor all Intellectual Property Rights in and to any and all Application
      Work Product, exclusive of the Client Specific IPR. Client Specific IPR is
      not
      included in the definition of Application Work Product. Client will retain
      ownership of all Client Specific IPR. 

    

    2. Client
      License.
      Contractor hereby grants and will be conclusively deemed to have (at no
      additional cost) granted to Client and its Affiliates a perpetual, worldwide,
      irrevocable, royalty-free, non-exclusive license under the Master Software
      License and Support Agreement between the parties dated as of February 1, 2006
      (the “License Agreement”) to use, execute, display and perform the Application
      only in conjunction with the other software licensed by Contractor under the
      License Agreement, subject to any of Contractor’s rights or Client’s obligations
      under the License Agreement.

    

    To
      the extent that there is any conflict between the terms of this Addendum and
      the
      terms of the Master Professional Services Agreement, the terms of this Addendum
      shall control.

    
      	 

    

    

    IN
      WITNESS WHEREOF,
      the Parties hereto, through their duly authorized officers, have executed this
      Addendum to the Master Professional Services Agreement as of the Effective
      Date
      designated above.

    

    
      	
              Contractor:
                

            	 	
              Client:
                

            
	
              By:

            	
              /s/
                Kelly Hicks

            	 	
              By:

            	
              /s/
                Mitchell J. Habib

            
	
              Name:

            	
              Kelly
                Hicks

            	 	
              Name:

            	
              Mitchell
                J. Habib

            
	
              Title:

            	
              Vice
                President, Finance

            	 	
              Title:

            	
              CIO

            
	
              Date:

            	
              June
                6, 2006

            	 	
              Date:

            	
              June
                6, 2006

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