Document:

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                                                                    EXHIBIT 10.1

                         PRUDENTIAL SAVINGS ASSOCIATION
                           DEFERRED COMPENSATION PLAN

                           EFFECTIVE: JANUARY 1, 1986

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                           DEFERRED COMPENSATION PLAN

Prudential has implemented a voluntary deferred compensation plan which will
allow directors and certain executive employees to defer part of their income at
their election. The purpose of the program is to allow directors and select
executive employees who find themselves in the higher tax brackets to defer
income until a future date when their tax burden may not be as great. This
program will be administered by a Deferred Compensation Committee approved by
the Board of Directors.

Advantage and Disadvantages to Employees and Directors

For an employee or director the deferred compensation plan offers the following
advantages:

      1.    It defers income and thus tax on such income until the Participant
            is in a potentially lower tax bracket.

      2.    It allows the amount deferred to increase through appreciation on a
            tax deferred basis.

An employee or director who defers income, however, is treated as a general
creditor of his employer and his deferred compensation is co-mingled with other
assets of Prudential. Payment by Prudential of deferred compensation is not
guaranteed by the FSLIC as are savings accounts. This general creditor status is
viewed as a significant disadvantage of deferred compensation plan.

Consideration for an Employee or Director Contemplating a Deferred Compensation
Arrangement

      1.    Employee should be in a strong financial position with current
            income substantially in excess of current expense.

      2.    Employee's current income tax bracket must be high with the
            prospects of staying high only to retirement. At retirement the
            employee's tax bracket should potentially decrease if the deferred
            compensation approach is to be entirely effective.

      3.    The savings produced by having payments taxed at a lower bracket at
            payout should exceed the after-tax income that could have been
            earned by the employee if he had received the compensation, paid tax
            on it and invested it.

      4.    The employer should be in sound financial condition with the
            likelihood of remaining so throughout both the accumulation period
            and the payout period.

                                      -1-
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Description of the Agreement

1.    Eligibility - employees eligible for participation in this program are
directors and select executive employees as determined by the Board of
Directors.

2.    Deferral Amount - an employee may defer an amount of his compensation if
he does so no later than the December 31st preceding the year in which the
compensation is earned.

Example: An employee is currently earning $40,000 per year or $3,333. per month.
         He would like to defer $500. a month and receive taxable income of
         $2,833. per month beginning on January 1, 1987. To do so he must
         make his election to defer $500. no later than December 31, 1986.

Investment of Deferred Income

Prudential may keep the deferred amounts in cash or invested in mutual funds,
stocks, bonds, securities or any other asset (including life insurance) as
selected by the Deferred Compensation Committee. If the deferred amounts are
kept in cash, interest will be credited at a rate equal to one (1%) percent less
than the earnings on Prudential's mortgage portfolio as determined on March
31st, June 30th, September 30th and December 31st of each year.

The employee assumes all investment risks. There is no guarantee of interest and
principal.

Payment of Deferred Compensation Balance

Payment from the Deferred Compensation Agreement will generally be in a lump sum
or in six or twelve annual installments as the employee or directors elect.
Payments will begin no later than 30 days following the termination of
employment or the attaining of seventy (70) years of age as the employee or
director. During the payout period the funds still are subject to investment
risk. Other payout arrangements may be made at the Committee's discretion.

Death Benefits

If an employee or director dies prior to his termination of employment or prior
to full distribution of his account, the unpaid balance in his account will be
paid to his beneficiary in a manner subject to the Committee's discretion.

Effect on Basic Retirement Benefits

Under rules and regulations published by the Internal Revenue Service, any
amounts of compensation deferred under this agreement cannot be used in
determining benefits under Prudential's Pension Plan. Therefore, the effect of
deferring income which would otherwise be used to determine benefits under the
retirement plan would be to reduce such retirement benefits.

                                      -2-
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Miscellaneous Provisions

Benefits payable under the Deferred Compensation plans are not subject to the
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
charge, garnishment, execution or levy of any kind against the participant.

All funds held under the plan shall continue for all purposes to be a part of
the general funds of Prudential and no one other than Prudential shall have any
interest in these funds. Each person entitled to receive payments shall be
nothing more than an unsecured general creditor of Prudential.

                                      -3-
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                                    ARTICLE I

                                     PURPOSE

      The purpose of this Plan is to provide for the payment of compensation
duly deferred by any Participant under a Deferred Compensation Agreement.

                                   ARTICLE II

                          DEFINITIONS AND CONSTRUCTION

      2.1   Definitions: Where the following words and phrases appear in this
Plan, they shall have the respective meanings set forth below, unless their
context clearly indicates to the contrary:

      (a)   Board of Directors: The duly elected and serving Board of Directors
of Prudential Savings Association or any duly authorized committee of that
Board.

      (b)   Code: The Internal Revenue Code of 1954, as amended from time to
time.

      (c)   Committee: The persons appointed to administer the Plan in
accordance with Article VII.

      (d)   Deferred Compensation Agreement: An agreement entered into between a
Participant and the Employer providing for the deferral of a portion of such
Participant's compensation to be paid pursuant to the terms and provisions of
this Plan, which agreement is incorporated herein by reference and made a part
hereof.

      (e)   Deferred Compensation Balance: The amount determined under Section
4.2 hereof.

      (f)   Effective Date: January 1, 1986.

      (g)   Employee: Any person who is receiving remuneration for personal
services rendered to the Employer.

      (h)   Employer: Prudential Savings Association, a corporation organized
and existing under the laws of the Commonwealth of Pennsylvania, or its
successor or successors (hereinafter "Prudential").

                                      -1-
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      (i)   Participant: An eligible employee or director of the Employer who
meets the requirements to participate in the Plan in accordance with the
provisions of Article III hereof.

      (j)   Plan: Prudential Savings Association Deferred Compensation Plan, as
amended from time to time.

      (k)   Plan Year: The twelve (12) month period beginning on January 1st and
ending on December 31st.

      2.2   Construction: The masculine gender, where appearing in the Plan,
shall be deemed to include the feminine gender; the singular may include the
plural; and vice versa, unless the context clearly indicates to the contrary.

      2.3   Governing Law: The Plan shall be construed in accordance with and
governed by the laws of the Commonwealth of Pennsylvania.

                                   ARTICLE III

                          ELIGIBILITY AND PARTICIPATION

      3.1   Employees Eligible to Participate: The Board of Directors, in its
sole discretion, shall determine who shall be eligible to participate in this
Plan.

                                   ARTICLE IV

                               AMOUNT OF BENEFITS

      4.1   Amount of Deferred Compensation: If, during 1986, an Employee
entered into a Deferred Compensation Agreement with the Employer specifying in
dollars or percentage of compensation the amount of compensation for the
remainder of 1986 that is to be deferred under a plan of deferred compensation,
an amount equal to the deferred compensation so specified under such agreement
shall be credited to a book reserve (memorandum account) established for this
purpose under this Plan on a pro rata basis over the remaining months of 1986
beginning with the date of deferral under such agreement. If, not later than
December 31st of any year (beginning with 1986), an Employee enters into a

                                      -2-
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Deferred Compensation Agreement with the Employer specifying in dollars or
percentage of compensation the amount of compensation for the following year
that is to be deferred under this Plan, an amount equal to the deferred
compensation so specified under such agreement shall be credited to a book
reserve (memorandum account) established for this purpose under this Plan on a
pro rata basis over the remaining months of the following year.

      4.2   Deferred Compensation Balance: Any such funds so credited to such
book reserve (memorandum account) may be kept in cash or invested and reinvested
in mutual funds, stocks, bonds, securities, or any other assets as may be
selected by the Committee in its discretion. In the exercise of the foregoing
discretionary investment powers, the Committee may delegate full or limited
authority to select the assets in which the funds are to be invested. In the
event that the funds credited to the book reserve (memorandum account) are kept
in cash, interest shall be credited thereon at a rate equal to one (1%) percent
less than the earnings on Prudential's mortgage portfolio as determined on March
31st, June 30th, September 30th and December 31st of each year.

      The participant agrees on behalf of himself and his designated beneficiary
to assume all risk in connection with any decrease in value of the funds which
are invested or which continue to be invested in accordance with the provisions
of this agreement.

      The Deferred Compensation Balance for any Participant at any time shall
equal the current balance of the funds so held and invested for him hereunder;
provided, however, in the year of the Employee's termination of employment, for
whatever reason, such balance shall not include a fraction of the amount of
compensation deferred for such year pursuant to Section 4.1 hereof (including
any earnings thereon). Such fraction shall have a numerator

                                      -3-
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equal to the number of days between the date of such termination of employment
and the end of such year and shall have a denominator equal to three hundred
sixty-five (365).

                                    ARTICLE V

                    PAYMENT OF DEFERRED COMPENSATION BALANCE

      5.1   Payment of Deferred Compensation Balance: If the Participant's
employment hereunder is terminated, or upon the participant becoming seventy
(70) years of age (whichever shall be selected by the participant at the time of
election to defer compensation) the Employer shall pay to him such amount equal
to the Deferred Compensation Balance as of such date, the payment to be in a
lump sum or in six or twelve annual installments as selected by the Participant
at the time the Participant elects to defer receipt of compensation.
Notwithstanding the foregoing, the total amount payable to the Participant shall
be appropriately increased or decreased, as the case may be, to reflect the
appreciation or depreciation in value and the net income, including interest
collected, or loss on the funds which comprise the Deferred Compensation
Balance.

      5.2   Optional Forms of Payment: Notwithstanding anything herein contained
to the contrary, the Committee shall have the right in its sole discretion to
vary the manner and time of making the distributions provided in this paragraph
and may make such distributions in lump sums or over a shorter or longer period
of time than selected by the Participant as it may find appropriate.

                                      -4-
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                                   ARTICLE VI

                                 DEATH BENEFITS

      6.1   Death Before Payments Completed: If the Participant should die
before his Deferred Compensation Balance has been fully paid, the unpaid balance
will be paid to his designated beneficiary in a manner determined by the
Committee.

      If both the Participant and his designated beneficiary should die before
his Deferred Compensation Balance has been fully paid, the unpaid balance shall
be paid as promptly as possible in one lump sum to the estate of such designated
beneficiary.

      6.2   Designation of Beneficiary: The beneficiary referred to in this
Article VI may be designated or changed by the Participant on a form provided by
the Committee. If no such beneficiary shall have been designated, or if no
designated beneficiary shall survive the Participant, the installment payments
payable under Section 6.1, above shall be payable to the Participant's estate.

                                   ARTICLE VII

                                 ADMINISTRATION

      7.1   Appointment of Committee: The Plan shall be administered by a
Committee, which, unless otherwise determined by the Board of Directors, shall
be the Board of Directors. The membership of the Committee may be reduced,
changed, or increased from time to time in the absolute discretion of the Board
of Directors.

      7.2   Committee Powers and Duties: The duties of the Committee will be
determined by the Board of Directors. The Committee shall have such powers as
may be necessary to discharge its duties hereunder.

                                      -5-
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                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

      8.1   Amendment, Termination, Etc.: The Board of Directors may, by
resolution, in its absolute discretion, from time to time, amend, suspend or
terminate in whole or in part, and if terminated reinstate, any or all of the
provisions of the Plan, except that no amendment, suspension, or termination may
apply so as to decrease the payment to any Participant (or beneficiary) of any
benefit under the Plan, which were accrued prior to the effective date of such
amendment, suspension, or termination. Any such amendment, suspension, or
termination shall become effective on such date as shall be specified in such
resolution and, except as expressly limited in this Section, include such
provisions and have such effect as the Board of Directors, in its absolute
discretion, deems desireable.

      8.2   Nonguarantee of Employment: Nothing contained in this Plan shall be
construed as a contract of employment between the Employer and any employee, or
as a right of any employee to be continued in the employment of the Employer, or
as a limitation of the right of the Employer to discharge any of its employees,
with or without cause.

      8.3   Nonalienation of Benefits: To the extent permitted by law, benefits
payable under this Plan shall not, without Committee consent, be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, charge, garnishment, execution, or levy of any kind, either
voluntary or involuntary. Any unauthorized attempt to anticipate, alienate,
sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any
right to benefits payable hereunder shall be void. No part of the assets of the
Employer shall be subject to seizure by legal process resulting from any attempt

                                      -6-
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by creditors of or claimants against any Participant (or beneficiary), or any
person claiming under or through the foregoing, to attach his interest under the
Plan.

      8.4   Liability: No member of the Board of Directors, or of the Committee
shall be liable for any act or action, whether of commission or omission, taken
by any other member, or by any officer, agent, or employee of the Employer or of
any such body, nor, except in circumstances involving his bad faith, for
anything done or omitted to be done by himself.

      8.5   Incapacity of Recipient: If the Committee shall find that any person
to whom any payment is payable under this Plan is unable to care for his affairs
because of illness or accident, or is a minor, any payment due (unless a prior
claim therefor shall have been made by a duly appointed guardian, committee or
other legal representative) may be paid to the spouse, a child, a parent, or a
brother or sister, or to any person deemed by the Committee to have incurred
expense for such person otherwise entitled to payment, in such manner and
proportions as the Committee may determine. Any such payment shall be a complete
discharge of the liabilities of the Employer under this Plan.

      8.6   No Trust or Other Ownership Created: Nothing contained in this Plan
and no action taken pursuant to the provisions of this Plan shall create or be
construed to create a trust of any kind, or a fiduciary relationship between the
Employer and the Participant, his designated beneficiary or any other person.
Any funds which may be maintained in connection with this Plan shall continue
for all purposes to be a part of the general funds of the Employer and no person
other than the Employer shall by virtue of the provisions of this Plan have any
interest in such funds. To the extent that any person acquires a right to
receive payments from the Employer under this Plan, such right shall be no
greater than the right of any unsecured general creditor of the Employer.

                                      -7-exv10w37

 

EXHIBIT 10.37

EPI Transition Agreement

between

UBS AG and Perot Systems Corporation

Table of Contents

	 
	I. Personnel

	A. Initial Assignments

	B. Assignments at Transition Date

	C. Assignments after Transition Date

	D. Hiring during Term

	1. UBS’ Involvement

	2. Perot Systems’ Involvement

	3. Disputes

	E. Restrictions on Transfers by Perot Systems

	F. Assignment of Perot Systems Personnel during the Transition Period

	G. Hiring at Expiration

	H. Additional Procedural Requirements

	I. Terms of Employment Offers

	J. Retentions After Expiration Date

	K. Other Hiring Restrictions

	L. Indemnities

	M. Subcontracting

	II. Operations

	A. Services

	B. Security

	C. Safeguarding SBC Data

	D. Safeguarding PSC Data

	E. Physical Security for Facilities

	F. Disaster Recovery/Viruses

	G. Third-Party Contracts

	H. Data Protection

	III. Finance

	A. Annual Profit Amount

	B. Revenues

	1. Services

	2. Revenue Forecasts, Bonuses, and Floors

	C. Transition Bonus

	D. Insurance

	E. Existing Tax Assets

	IV. Services

	A. Services; Projects

	B. Requirements; Final Right of Refusal

	C. Non-Competition

	V. Intellectual Property

	A. SBC Systems

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	B. Rights in Developed Systems

	C. PSC Systems

	D. Rights in Other Materials

	E. No Effect on Other Licenses

	VI. Relationship

	A. Governance

	B. Preferred Vendor

	C. Relationships with Competitors of Other Party

	D. No Further EPI Agreements

	VII. Termination

	A. General

	B. Termination

	C. Termination Assistance

	VIII. Miscellaneous

	A. Entire Agreement

	B. Notices

	C. Waiver

	D. Survival

	E. No Third-Party Beneficiaries

	F. Indemnification Procedures

	Schedule A            Definitions

	Schedule B            Residual Perot Systems Account Team

	Schedule C            Personnel on ITSM Project

	Schedule D            Agreed Management Principles

	Schedule E            Systems Developed and Owned by Perot Systems under the EPI

	Table 1 Agreements Remaining in Effect Between Parties as of Effective Date

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Agreement

This EPI Transition Agreement (the “Agreement”) is made as of 15 September 2004
(the “Effective Date”), between UBS and Perot Systems to establish the terms
and conditions by which the parties will transition responsibility and
authority from Perot Systems to UBS between the Effective Date and 1 January
2005 (the “Transition Date”) and thereafter through 1 January 2007 (the
“Expiration Date”) for the performance of Perot Systems’ services under the EPI
Agreement and to amend other agreements between the parties as necessary.
These terms, conditions, and amendments are set forth below.

Certain capitalized terms used in this Agreement are defined in Schedule A.
Capitalized terms not defined in Schedule A or otherwise defined in this
Agreement are defined in the Master Agreement, MOA, or EPI Agreement.

Except as otherwise stated in this Agreement, (i) the terms of other agreements
between the parties remain in effect, and (ii) the changes set forth in this
Agreement to such other agreements take effect on the Effective Date.

I. Personnel

A. Initial Assignments. On or before the Effective Date, UBS will notify Perot
Systems of its process for selecting personnel from the UBS Group and the PSC
Group for Tiers 1 and 2 of the ITI organization or the IB IT production
organization, being the personnel who will report directly (Tier 1) or
indirectly at one remove (Tier 2) to the head of ITI or IB IT production. On
or before the Transition Date, UBS will select such personnel with the advice
and counsel of Perot Systems’ Operational Manager and shall notify Perot
Systems of the selections.

B. Assignments at Transition Date. On the Transition Date, Perot Systems will
assign (subject to the terms of the Agreed Management Principles) the
responsibility to manage and direct the work (but not the responsibility to
administer the employment) of all Perot Systems Personnel who are then assigned
to performing Services under the EPI Agreement to teams designated and led by
production management of ITI or production management of IB, and UBS will
accept such responsibility. Notwithstanding the preceding sentence, Perot
Systems shall retain the sole responsibility to select, employ, manage,
supervise, and terminate Perot Systems Personnel in the roles set forth on
Schedule B and UBS shall pay Perot Systems the PSC Costs for such Perot Systems
Personnel through the Expiration Date or Wind-up Date as specified in Schedule
B. The parties anticipate that the roles listed on Schedule B may change by
mutual agreement from time to time.

C. Assignments after Transition Date. As to the Perot Systems Personnel who on
the Transition Date are assigned to the ITSM project and are listed on Schedule
C, as Schedule C may be amended by agreement up to the Transition Date, Perot
Systems will assign (subject to the terms of the Agreed Management Principles)
the responsibility to

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manage and direct the work (but not the responsibility to administer the
employment) of all of such Personnel to teams led by production management of
ITI and production management of IB when the ITSM project expires, and UBS will
accept such responsibility.

D. Hiring During Term.

1. UBS’ Involvement. After the Transition Date, Perot Systems will
involve UBS in the process for appointing Perot Systems Personnel
excluding those in roles listed on Schedule B in the following manner.
When Perot Systems has decided to nominate a candidate, it will notify
the most junior UBS Personnel in the management chain upwards from that
candidate’s intended position. If Perot Systems receives an automated
out-of-office email response, it will notify the next most senior person
in the management chain. The UBS Personnel will have two working days to
decide whether UBS desires to interview the candidate first, and no
response will be deemed approval of the nomination. If the UBS Personnel
responds within two working days that UBS desires to interview the
candidate, UBS will have a further five days from that response to
conduct the interview and decide whether to approve the nomination,
provided that such five-day period shall be extended until Perot Systems
makes the candidate available to UBS for an interview. Failure to notify
Perot Systems in writing (including email) of a disapproval within such
five-day period will be deemed approval. The above is subject to the
rights of UBS under Section 6 of the MOA with respect to the Perot
Systems Relationship and Operational Managers.

2. Perot Systems’ Involvement. Where one of Perot Systems Personnel is
managing a blended team of Perot Systems Personnel and UBS Personnel, he
or she will have rights similar to those described in Section I.D.1
above, and within the same time frames, to approve or disapprove the
nomination of a member of UBS Personnel to the team.

3. Disagreements. If Perot Systems and UBS disagree on a nomination, the
question will be referred to the parties’ Operational Managers and, if
they cannot resolve the matter, to the dispute resolution process under
Sections 7.2 and 7.3 of the MOA.

E. Restrictions on Transfers by Perot Systems. During the period from January
1, 2005, to September 30, 2006, Perot Systems will not, without the written
consent of UBS (which will not be unreasonably withheld or delayed), reassign
within Perot Systems or its Affiliates any Perot Systems Personnel if such
reassignment would: (i) violate Section 4.2(e) of the Master Agreement; or
(ii) result in the total number of Perot Systems Personnel who have been
reassigned in a calendar year to exceed any of the following thresholds: (A)
5% of Perot Systems Personnel; (B) 30% of the Perot Systems Personnel at a
given geographic location (i.e., within a state within the United States, or
within a country if outside the United States; or (C) 30% of the Perot Systems
Personnel in any one discipline of IT (e.g., Sybase, UNIX administrator,
desktop support, etc.). For the purposes

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of calculating the thresholds, the number of Perot Systems Personnel under
clauses (A), (B) and (C) above shall be determined as at the beginning of each
calendar year. Any open positions created by reductions in Perot Systems
Personnel through terminations for performance or for misconduct or voluntary
resignations, or created by increased demand for resources by the UBS Group
made in accordance with Schedule F to the EPI Agreement, as amended by Section
III.B.2(g) of this Agreement, and remaining unfilled shall count against the
thresholds set forth in clauses (A), (B) and (C) above.

F. Assignment of Perot Systems Personnel

1. Perot Systems shall (on behalf of itself and other PSC Group members)
comply with any Law applicable to it that relates to the assignment of
Perot Systems Personnel to the UBS Group during the Transition Periods,
including where applicable the obtaining of relevant authorities or
permits in relation to such assignment and shall provide copies to UBS
promptly and in any event within 14 days after the date of execution of
this Agreement by the parties.

2. During the Transition Periods the parties mutually agree that Perot
Systems Personnel who are employees or contract personnel shall remain
respectively as employees and contract personnel of Perot Systems (or, if
applicable, other members of the PSC Group) notwithstanding their
assignment to the UBS Group during the Transition Periods and Perot
Systems shall administer and continue to pay their salaries, fees,
allowances and to provide their benefits during the Transition Periods.

3. During the Transition Periods Perot Systems and UBS shall comply with
the Agreed Management Principles in respect of the Perot Systems
Personnel as set out in Schedule D.

4. Perot Systems (on behalf of itself and other PSC Group members) shall
during the Transition Periods comply with any Obligation applicable to
it in respect of the Perot Systems Personnel and their appropriate
representatives (including any information and consultation
requirements).

5. UBS (on behalf of itself and other UBS Group members) shall during the
Transition Periods comply with any Obligation applicable to it in respect
of the assignment to the UBS Group of Perot Systems Personnel as third
party labor (including any information and consultation requirements).

6. Perot Systems (on behalf of itself and other PSC Group members) shall
not between the Effective Date and the Expiration Date without the prior
written consent of UBS (such consent not to be unreasonably withheld or
delayed) materially alter the terms and conditions of employment or
engagement (whether contractual or non-contractual) of Perot Systems
Personnel, including without limitation the terms of any Severance Plan.
This Section I.F.6 shall not apply to

5

 

alterations that are required by any Obligation or that apply to all or a
substantial proportion of Perot Systems’ employees.

7. Subject to applicable Law Perot Systems shall (on behalf of itself and
other PSC Group members), upon receipt of a reasonable written request
from UBS for information in respect of Perot Systems Personnel, use
commercially reasonable efforts to obtain from the Perot Systems
Personnel any necessary consent under any applicable Law in connection
with the provision of personnel information to UBS, and shall provide
such information that is dependent on the obtaining of individual
employee consent within five working days after obtaining such consent,
and shall provide any other information to UBS within five working days
of the request being made.

8. UBS and Perot Systems agree that in Territories where Acquired Rights
Directive Law applies the date of transfer for the purposes of the
Acquired Rights Directive Law (where applicable) shall be 31 December
2006 or, if earlier, the date on which the EPI Agreement terminates.

G. Hiring at Expiration.

1. The “UBS Offer Period” will run from August 31, 2006 through September
30, 2006. During the UBS Offer Period, one or more members of the UBS
Group shall make offers of employment (and of contract novation in the
case of contract personnel) to all Perot Systems Personnel then on the
account, including such Perot Systems Personnel who have been assigned to
the account after the Effective Date (subject to UBS’ approval under
Section I.D.1 after the Transition Date), who are not employed in roles
listed on Schedule B, and may make offers of employment or engagement to
Perot Systems Personnel who are employed or engaged in roles listed on
Schedule B. Such offers shall take effect as of the Expiration Date,
except that any offers to Perot Systems Personnel whose roles are
designated with an asterisk on Schedule B shall take effect upon
completion of their responsibilities in that role but no later than the
Wind-up Date. UBS shall inform Perot Systems of the substance of each
offer within three days after sending the written offer letter to the
Perot Systems Personnel and shall notify Perot Systems promptly of each
acceptance or rejection by a recipient.

2. Except to the extent set forth in Section I.G.3, below, during the UBS
Offer Period, Perot Systems (on behalf of itself and other PSC Group
members) shall not make offers of employment or engagement to Perot
Systems Personnel or otherwise discuss potential roles, responsibilities
or compensation with such Perot Systems Personnel. Perot Systems will
collaborate with UBS to maximize acceptances of offers made by UBS Group
members to Perot Systems Personnel, subject to applicable law, and will
not take any actions to impede or discourage UBS Group members’ attempts
to hire such Perot Systems Personnel. Perot Systems shall cooperate in
facilitating the UBS hiring process to the extent reasonably practicable.
In the case of Perot Systems Personnel who are contract

6

 

personnel, Perot Systems (and the applicable PSC Entity) shall use all
commercially reasonable efforts to obtain any required consents and
otherwise cooperate in the transfer or assignment to UBS of the
contractor agreement(s).

3. Notwithstanding Section I.G.2, on or before June 30, 2006, Perot
Systems may give UBS a list of Perot Systems Personnel whom Perot Systems
(or the applicable PSC Entity) wishes to retain as of June 30, 2006,
subject to the same limits on the quantity, location, and disciplines of
such Perot Systems Personnel as those in Section I.E above on
reassignments except that open positions will not count against the
thresholds. Perot Systems (or the applicable PSC Entity) may make offers
to retain such Personnel during the UBS Offer Period (which may result in
such Perot Systems Personnel receiving simultaneous offers of employment
or engagement from members of the Perot Systems Group and UBS Group
during the UBS Offer Period). Successful redeployment of any Perot
Systems Personnel under Section I.H.1 below will not be deemed to
constitute a transfer when calculating the thresholds set out in Section
I.E.

4. If the EPI Agreement terminates prior to January 1, 2007 for any
reason, the dates set forth in this Section I.G for employment offers
shall be adjusted to provide comparable offer periods (to the extent
practicable) prior to the effective date of termination of the EPI
Agreement or, if impracticable, shall be accelerated so as to compress
the periods proportionally.

H. Additional Procedural Requirements

1. After September 1, 2006, UBS shall notify Perot Systems in writing
within 5 working days if no offer of employment or engagement has been
made to a member of Perot Systems Personnel or if an offer of employment
or engagement made in accordance with Section I.G.1 above has been
rejected within 5 working days of receiving such rejection, and Perot
Systems will use its reasonable endeavors (taking into account its then
current resourcing requirements) to redeploy the relevant Perot Systems
Personnel within the PSC Group prior to the Expiration Date or (in the
case of staff marked with an asterisk in Schedule B) prior to the Wind-up
Date. Where Perot Systems (or the applicable PSC Entity) does not
redeploy a member of Perot Systems Personnel it shall (subject to any
applicable Obligation) within five working days after receiving notice
from UBS in accordance with this Section I.H.1 give notice of termination
of employment or engagement to the member of Perot Systems Personnel,
using reasonable endeavors to achieve all such terminations by no later
than December 15, 2006, or in the case of Perot Systems Personnel marked
with an asterisk on Schedule B, by the Wind Up Date. If UBS does not
give the required notice in accordance with this Section I.H.1 Perot
Systems (or the applicable PSC Entity) may give notice of termination of
employment or engagement to the relevant member of Perot Systems
Personnel in accordance with any applicable Obligation.

7

 

2. In respect of Perot Systems Personnel who accept an offer of
employment or an engagement with any member of the UBS Group, Perot
Systems (or the applicable PSC Entity) will carry out any required
termination of their Perot Systems employment or engagement using
reasonable endeavours (subject to any applicable Obligation) to
accomplish this by no later than December 31, 2006, or in the case of
Perot Systems Personnel marked with an asterisk on Schedule B, by the
Wind Up Date.

3. Perot Systems (on behalf of itself and other PSC Group members) shall
use its commercially reasonable efforts to procure that any member of
Perot Systems Personnel (i) whose employment or engagement is terminated
in accordance with Sections I.H.1 or I.H.2 above, and (ii) to whom a
severance payment under the terms of an applicable Severance Plan is made
will execute a Settlement Agreement as to such termination. Perot Systems
shall not be required to offer any payments in excess of any Obligation
or under the Severance Plan as part of its efforts unless UBS agrees in
writing in advance to reimburse Perot Systems for the payments.

I. Terms of Employment Offers. Any employment offers made by UBS (or other
members of the UBS Group) will be in accordance with this Article I and
otherwise in accordance with the applicable UBS Entity’s normal employment
policies. The applicable UBS Entity will offer each transitioned employee a
total salary and benefits package in monetary value that is substantially
comparable to or better than the total salary and benefits package received by
that employee prior to the transfer.

J. Retentions After Expiration Date. The parties contemplate that certain
Perot Systems Personnel will be required for account management and
administration services for some time after the Expiration Date. The roles of
such personnel are marked with an asterisk in Schedule B. As to such
personnel who are performing such roles up to the Wind-up Date, UBS will pay
the PSC Costs of such personnel in accordance with Schedule F of the EPI
Agreement as though it were still in effect.

K. Other Hiring Restrictions. Section 8.10(c) of the MOA is deleted.

L. Indemnities.

1. Perot Systems will defend, indemnify, and hold harmless the UBS Group
against all Liabilities in any of the Territories arising out of or in
connection with:

1.1 the employment or engagement or termination of employment or
engagement of any PSC Group staff who have not been Perot Systems
Personnel and whose claim is not covered by a UBS indemnification
obligation;

1.2 any failure by any member of the PSC Group prior to the
Transition Date to obtain any relevant authority or permit
in any of

8

 

the Territories in relation to the provision of Perot
Systems Personnel to the UBS Group prior to the Transition
Periods and/or to maintain such authority or permit during
the Transition Periods;

1.3 any failure by any PSC Group member in the period prior
to the Expiration Date to comply with an Obligation
applicable to it in any Territory relating to Perot Systems
Personnel or their appropriate representatives or to UBS
Personnel. In the case of Perot Systems Personnel whose
roles are marked with an asterisk in Schedule B the
obligation set out in this section shall additionally apply
in the period prior to the Wind-up Date);

1.4 any breach by Perot Systems of Section I.F.6 of this
Agreement; and

1.5 any act or omission (other than those addressed in
Sections L.1.1.1. through L.1.1.4 preceding) by any PSC
Group member or any Perot Systems Personnel in relation to
any Perot Systems Personnel or any UBS Personnel in the
period prior to the Expiration Date (or in the case of
Perot Systems Personnel listed in Schedule B, in the period
prior to the Wind-up Date), including without limitation
any failure to comply with the requirements of Sections
I.H.1 to I.H.3 above save where such act or omission was in
accordance with the Agreed Management Principles or
otherwise done (or not done) at the request of or on the
instruction of any UBS Personnel whom the applicable PSC
Entity or Perot Systems Personnel reasonably believed was
authorised by UBS to make such a request or give such
instruction.

2. UBS will defend, indemnify, and hold harmless the PSC Group
against all Liabilities in any of the Territories arising out of
or in connection with:

2.1 any claim by Perot Systems Personnel directly related
to the reorganization of the management and team structures
applicable to the provision of the Services by UBS in the
period prior to the Expiration Date, including any claim of
illegal discrimination, constructive termination, or unjust
dismissal, save as such claim may result from actions by
the PSC Group which do not accord with the Agreed
Management Principles or this Agreement;

2.2 the terminations under Section I.H.1 and Section I.H.2
above, save where the relevant member of the PSC Group has
failed to comply with Section I.H.3 in respect of the
terminated member of Perot Systems Personnel.
Notwithstanding the above,

9

 

UBS will not be obligated under this paragraph 2.2 to
reimburse any member of the PSC Group for payments due
under any Severance Plan or otherwise in excess of an
Obligation for any Perot Systems Personnel who do not
accept an offer of employment or engagement extended by UBS
or by Perot Systems or for any Liability arising from any
failure of the PSC Group to comply with an Obligation in
respect of a termination carried out pursuant to Sections
I. H. 1 or I. H. 2;

2.3 any failure to make an offer of employment in
accordance with this Agreement or any claim that an offer
of employment or a failure to offer employment by a UBS
Group member during the UBS Offer Period was a breach of a
relevant Obligation;

2.4 the employment or engagement or termination of
employment or engagement by a UBS Group member of any UBS
Personnel;

2.5 the employment or engagement, or termination of
employment or engagement, by a UBS Group member of any
Perot Systems Personnel who becomes employed or engaged by
UBS or any member of the UBS Group in accordance with this
Agreement, or in the case of Perot Systems Personnel who
are employees, pursuant to Acquired Rights Directive Law
(if applicable), save where the relevant member of the PSC
Group fails to comply with the Agreed Management Principles
and such failure gives rise to the Liability;

2.6 any failure by any UBS Group member during the
Transition Period to comply with an Obligation applicable
to it in any Territory relating to the assignment to the
UBS Group of any Perot Systems Personnel; and

2.7 any act or omission (other than those addressed in Sections
L.2 2.1 through L.2.2.6 preceding) by any UBS Group member or any
UBS Personnel in relation to any Perot Systems Personnel or any
UBS Personnel during the Transition Periods, save where such act
or omission was in accordance with the Agreed Management
Principles or otherwise done (or not done) at the request of or on
the instruction of a member of the Perot Systems Account
Leadership Team as described in Schedule B.2..

M. Subcontracting. Perot Systems may subcontract its obligations to perform
Services under this Agreement and the EPI Agreement, other than to its
Affiliates, only in accordance with the following:

1. After the Effective Date, PSC Group members may neither enter into
subcontracts (which for purposes of this Agreement do not include
agreements with individual contract personnel) for, or in support of,
portions of the Services,

10

 

nor amend or renew such subcontracts, without the prior written approval
of UBS, not to be unreasonably withheld or delayed. UBS shall have the
right to revoke its prior approval of a subcontractor upon 10 days’
written notice to Perot Systems and direct Perot Systems to replace such
subcontractor if the subcontractor’s performance is materially deficient,
good faith doubts exist concerning the subcontractor’s ability to render
future performance because of changes in the subcontractor’s ownership,
management, financial condition, or otherwise, or there have been
material misrepresentations by or concerning the subcontractor, provided
that if UBS directs Perot Systems to replace a subcontractor whose
subcontract is already in effect on the Effective Date, UBS shall defend,
indemnify, and hold harmless the PSC Group from any claims by such
subcontractor arising from or related to its replacement.

2. Perot Systems shall remain responsible for obligations, services and
functions performed by subcontractors to the same extent as if such
obligations, services and functions were performed by Perot Systems
employees and for purposes of this Agreement such work shall be deemed
work performed by Perot Systems. Perot Systems shall be UBS’s sole point
of contact regarding the Services, including with respect to payment.
Perot Systems (on behalf of itself and other PSC Group members)_shall not
disclose UBS Confidential Information to a subcontractor unless and until
such subcontractor has agreed in writing to protect the confidentiality
of such Confidential Information in a manner substantially equivalent to
that required of Perot Systems under this Agreement.

II. Operations.

This Article II (“Operations”) takes effect on the Transition Date.

A. Services. Perot Systems warrants that the Perot Systems Personnel will have
appropriate skills and experience and will work diligently. Perot Systems also
warrants that it will promptly take reasonable steps to hire replacements (that
have appropriate skills and experience to perform the Services) for any of the
Perot Systems Personnel who resign or are terminated other than with the
approval of UBS and to hire personnel to fulfil UBS’ reasonable requirements
pursuant to the forecasting process in Schedule F of the EPI Agreement for
numbers and types of skills. The remedy for any breach of this warranty is
subject to the limitations on liability in the MOA and EPI Agreement. In
addition to the disclaimer of warranties in Section 10.8 of the MOA, commencing
on the Transition Date and for periods thereafter only, Perot Systems disclaims
all other warranties of its services under the EPI Agreement, express or
implied, and in particular disclaims any express warranty of performing in
accordance with particular service levels, metrics, or performance indicators;
provided, however, that the Performance Metrics in the EPI Agreement (including
application of the Penalty Pool and Reward Pool under Schedule G thereto) shall
continue to apply to calendar year 2004, with emphasis on performance on the
fourth calendar quarter of 2004.

B. Security Section 3.4 of the MOA is amended to state as follows:

11

 

“Security Procedures.

“UBS is responsible for developing, maintaining, updating, and providing
to Perot Systems the Security Procedures. Perot Systems will promptly
notify Perot Systems Personnel of the Security Procedures as received
from UBS. Perot Systems will, and will cause Perot Systems Personnel
identified in Schedule B.2 to, comply, with respect to Services provided
to UBS, with the Security Procedures with which it has been provided by
the applicable UBS AG Entity to the extent that those Security Procedures
are no more rigorous than similar security procedures applicable to UBS;
provided that Perot Systems will be liable only for material breaches of
such Security Procedures that shall have been committed, or directed, by
Perot Systems Personnel listed on Schedule B.2. Perot Systems will: a)
provide notice to UBS of any instances of non-compliance with the
Security Procedures by any Perot Systems Personnel that come to the
attention of any Perot Systems Personnel listed on Schedule B.2, as that
Schedule may be revised from time to time by mutual agreement; b) assist
in promptly resolving any violation of security procedures by Perot
Systems Personnel as directed by UBS; and c) remove from the account any
Perot Systems Personnel who shall have committed a material breach of
such Security Procedures. If relevant in such case, Perot Systems shall
not be entitled to reimbursement of any severance payments for such Perot
Systems Personnel.”

C. Safeguarding SBC Data. Section 5.2 of the MOA is amended to state as
follows:

“Safeguarding SBC Data. With respect to, and under the terms and
conditions of, each EPI Agreement, the applicable PSC Entity will
instruct its employees and contract personnel to comply with safeguards
established and maintained by SBC against the destruction, loss or
alteration of SBC Data. In the event that additional safeguards for SBC
Data are reasonably requested by the SBC Entity, the applicable PSC
Entity will instruct its employees and contract personnel to comply with
those additional safeguards. An SBC Entity will have the right to
establish backup security for data and to keep backup data and data files
in its possession if it so chooses.”

D. Safeguarding PSC Data. UBS acknowledges that under the agreements between
the parties Perot Systems was authorized to and did store Confidential
Information of Perot Systems Group members on Equipment and Systems which after
the Transition Date the UBS Group will control, and that it is infeasible for
the parties to segregate and remove such Confidential Information of Perot
Systems Group members from such Equipment and Systems. Accordingly, UBS agrees
to treat such Confidential Information of Perot Systems in accordance with
Article 9 of the MOA and that this obligation will (as with all obligations of
either party with respect to Confidential Information) survive the Expiration
Date.

12

 

E. Physical Security for Facilities. Section 5.3 of the MOA is amended to
state as follows:

“Physical Security for Facilities. With respect to, and under the terms
and conditions of, each EPI Agreement, the applicable PSC Entity
(including those Perot Systems Personnel listed on Schedule B.2) will
instruct Perot Systems Personnel and its subcontractors to comply with
all reasonably required security procedures at any place where Services
are performed by that PSC Entity. The applicable SBC Entity will provide
all necessary security personnel and security equipment at the SBC
Facilities. Perot Systems Personnel and its subcontractors will be
instructed to comply with the reasonable physical security procedures of
members of the SBC Group with respect to access to any SBC Facilities,
data and data files.”

F. Disaster Recovery/Viruses. Perot Systems will not be responsible for
maintaining a disaster recovery capability for UBS’s operations or for crisis
management unless contracted to Perot Systems as a “Preferred Vendor” under the
GFA and then only in accordance with the provisions of the GFA. Sections 5.5,
and 6.4 of the MOA are deleted. Perot Systems’ obligations under Section 5.7
(“Viruses”) of the MOA apply only to any System it controls.

G. Third-Party Contracts. UBS shall be responsible for managing all Third
Party Service Contracts. Section 4.8 of the MOA is deleted.

H. Data Protection. Perot Systems warrants to UBS that during the term of this
Agreement:

It will perform its obligations hereunder in compliance with any laws
and regulations applicable to it in performing Services. In this
Section II.H “laws and regulations” means:

	(i)	 	any laws or regulations, including data protection and
privacy legislation from any national, state, provincial or federal
government, local government, any institution of the European Union
or any other body having power to require compliance with the
regulation concerned
	 
	(ii)	 	any rules or guidelines issued by any financial or other
regulator (whether established by legislation or otherwise) having
jurisdiction over UBS in any relevant territory, and
	 
	(iii)	 	all applicable technical, safety or other standards which
are referred to in this Agreement.

III. Finance

A. Annual Profit Amount.

2004. The Annual Profit Amount for 2004 shall be subject to adjustment based
on the provisions of the EPI Agreement relating to the Performance Metrics
(including Section 6(d) of Schedule F and all of Schedule G thereto), which
shall remain in effect and apply to calendar year 2004; provided however, that
the maximum Penalty Amount is set as

13

 

3.25%, and the Reward Amount is set at zero (0%). UBS’ final assessment of any
adjustment for 2004 will place emphasis on performance against the Performance
Metrics in the fourth calendar quarter of 2004.

2005 and 2006. The Annual Profit Amount for 2005 and 2006 will be subject to
adjustment only in accordance with the EPI Agreement, Schedule F, Appendix 2,
except that as of the Effective Date and in addition to any inflation
adjustment (pursuant to Appendix 2) the Annual Profit Amount for 2005 will be
increased by $300,000 and the Annual Profit Amount for 2006 will be increased
by $150,000. For calendar years 2005 and 2006, Section 6(d) of Schedule F to
the EPI Agreement is amended to delete its second, third, and fourth sentences
and Schedule G to the EPI Agreement is deleted.

B. Revenues. This Section III.B shall take effect on the Transition Date.

1. Services. UBS will pay Perot Systems for Services in accordance with
the EPI Agreement, as modified by this Agreement.

2. Revenue Forecasts, Bonuses, and Floors.

(a) In each of calendar years 2005 and 2006, UBS will pay Perot
Systems a bonus of 20% of any amount by which Perot Systems’
“Qualifying Revenues” is less than the “Revenue Forecast” in that
year, but not more than 20% of the difference between the Revenue
Forecast and the “Revenue Floor” for that year. The terms set off
in quotation marks are defined below.

(b) If the Qualifying Revenues are less than the “Revenue Floor”
for that year, UBS will also pay Perot Systems the shortfall
between the Qualifying Revenues and 100% of the Revenue Floor.
Any such shortfall will be deemed PSC Costs and will be invoiced
and paid in accordance with Schedule F to the EPI Agreement, as
amended by this Agreement.

(c) “Qualifying Revenues” consist of UBS’ payments under this
Agreement and the EPI Agreement, allocated to each calendar year
in accordance with GAAP consistently applied, for PSC Costs for
Services, excluding the following:

(I) payments for services outside Services,

(II) payments of the Annual Profit Amount;

(III) any transition, completion, or delivery bonuses paid by
UBS;

(IV) staff bonus pool allocations;

(V) retention payments; and

(VI) any other classes of costs.

(d) The Revenue Forecast for 2005 is $154,000,000. The Revenue
Forecast for 2006 will be 95% of: the Qualifying Revenues for 2005
plus any 2005 shortfall owed and paid under Section III.B.2(b),
above, denominated in US Dollars.

14

 

(e) The Revenue Floor for 2005 is $139,000,000. The Revenue Floor
for 2006 will be 90% of the Revenue Forecast for 2006.

(f) The Revenue Forecasts and Revenue Floors for 2005 and 2006
will be adjusted for:

(i) any increase or decrease relative to the agreed Revenue
Forecast of more than 10% in the amount of Additional MDS
Services;

(ii) actual salary increases; and

(iii) foreign exchange fluctuations, as follows:

(A) for 2005, by:

(I) determining the actual PSC Costs for all
of 2004 as reported to UBS in USD using the
spot FX rates at December 31, 2003 (UBSW
Reference Rates (CHU));

(II) converting the amount from clause (A)(I)
to local currencies using the December 31,
2003, FX spot rates;

(III) converting the amounts from clause
(A)(II) to USD using the December 31, 2004, FX
spot rates;

(IV) dividing the amount from clause (A)(III)
by the amount from clause (A)(I); and

(V) multiplying the factor determined in
clause (A)(IV) by each of the FX-unadjusted
Revenue Floor and FX-unadjusted Revenue
Forecast for 2005 to yield, respectively the
FX-adjusted Revenue Floor and FX-adjusted
Revenue Forecast for 2005.

(B) for 2006, by:

(I) determining the amount that is 95% of
Qualifying Revenues for 2005 as reported to
UBS, plus any 2005 Shortfall owed and paid
under Section III B 2 (b) using the spot FX
rates at December 31, 2004;

(II) converting the amount from clause (B)(I)
to local currencies using the December 31,
2004, FX spot rates;

(III) converting the amounts from clause
(B)(II) to USD using the December 31, 2005, FX
spot rates;

(IV) dividing the amount in clause (B)(III) by
the amount in clause (B)(I); and

(V) multiplying the factor determined in
clause (B)(IV) by the amount from clause
(B)(I) to yield the FX-adjusted Revenue
Forecast for 2006; and

15

 

(VI) multiplying the amount from clause (B)(V)
by 90% to yield the FX-adjusted Revenue Floor
for 2006.

(g) Appendix 1 to Schedule F to the EPI Agreement is amended by
replacing it with the following:

“1. On the third working day of each month, UBS may provide
Perot Systems with details of the resources to be supplied
by Perot Systems for the following 12 months.

2. On the ninth working day of that month Perot Systems
will provide a financial forecast by month for the 12-month
period (taking into account reasonable periods of time to
fill the requested resources).

3. Perot Systems may decline to provide Perot Systems
Personnel outside the geographic locations (See I.E above)
at which Perot Systems is providing Services for UBS as of
the Effective Date, or who are requested for the
performance of work outside the definition of Services. In
addition, if Perot Systems can show to UBS’ reasonable
satisfaction that certain requested resources are beyond
the ability of Perot Systems to recruit in the relevant
labor market with all commercially reasonable efforts
within the requested time, UBS shall allow Perot Systems a
reasonable amount of additional time.

4. On the 12th working day of the first month of each
calendar quarter, the parties will review and agree on the
resourcing schedule and financial forecast (the “PSC Costs
Budget”).

5. If Perot Systems cannot meet all or part of the resource
requirement within three months after receiving the
request, UBS may withdraw the request and the Revenue Floor
and Revenue Forecast for that year may, at UBS’ discretion,
be adjusted. The adjustment to the Revenue Floor and
Revenue Forecast can only be made on an individual basis
and would be computed on the cost of the individual
position requested by UBS that Perot Systems failed to
provide.”

6. PSC will allocate the budget over the total number of
months in that Budget Period (the “Monthly Run Rate”) by
considering the month in which the various PSC Costs will
be incurred by PSC and allocate the Annual Profit Amount on
a pro-rata basis.

16

 

Consistent with the above, Section 1(e) of Schedule F to the EPI
Agreement is modified to read: “PSC Costs Budget” has the meaning
provided in Section 4 of Appendix 1 to Schedule F to the EPI
Agreement.

3. Section 4.4 of the Master Agreement (“Certain Events; Change of
Circumstances”), Section 2.4 of the MOA (“Major Changes”), and Sections
3.3(b), 3.3(c) and 3.7 of Amendment No. 1 to the EPI Agreement (“New PSC
Market Data Services Agreements”) are deleted. Except to the extent
inconsistent with the exercise of either party’s rights or obligations
pursuant to Article I, Section 11.3 of the MOA shall continue to apply to
this Agreement. The last sentence of Section 4.6 of the Master Agreement
shall not apply after September 30, 2006.

4. For the avoidance of doubt, severance costs incurred by Perot Systems
in conformance to this EPI Transition Agreement, in the absence of claims
which would implicate the indemnification provisions herein, may be
invoiced as “PSC Costs” chargeable to UBS.

C. Transition Bonus. If 80% of the Perot Systems Personnel to whom members of
the UBS Group make written offers of employment on or about August 31, 2006,
together with any Perot Systems Personnel whose employment is transferred to a
UBS Group member by operation of law, accept such offers or have their
employment so transferred, then UBS will pay Perot Systems a bonus of
$2,000,000 within 30 days after the Expiration Date. For every additional 1%
(rounded to the nearest %) of such Personnel who accept such offers or have
their employment so transferred on or before the Expiration Date (or on or
before the Wind-up Date, in the case of Perot Systems Personnel whose roles are
marked with an asterisk on Schedule B), up to a total of 95%, UBS will pay
Perot Systems an additional $66,667 within 30 days after the Expiration Date
(and, as to any additional bonus earned for Perot Systems Personnel whose roles
are marked with an asterisk on Schedule B, within 30 days after the Wind-up
Date). UBS will notify Perot Systems of the identities of Perot Systems
Personnel who have accepted and rejected such offers and of those whose
employment has been so transferred. Any such person who accepts an offer from
a UBS Group Member but later (prior to the Expiration Date) rejects or revokes
such acceptance shall not be considered to have accepted the UBS Group Member’s
offer of employment for purposes of this paragraph.

D. Insurance. Section 5(j) of the EPI Agreement is amended to state as
follows:

“Perot Systems will use all reasonable efforts to maintain Computer
Services Errors and Omissions Liability Insurance with a limit of one
hundred million dollars ($100,000,000) per claim and aggregate. UBS and
Perot Systems may periodically determine whether these limits should be
adjusted to take into account the effects of inflation. Fifteen percent
of the policy premium will be a PSC Cost. If another client of Perot
Systems makes a claim against this policy which if upheld would
materially reduce the amount of insurance coverage available for claims
by UBS,

17

 

Perot Systems will notify UBS and UBS would have the option to instruct
Perot Systems to use reasonable efforts with all due diligence to
increase the remaining coverage to $100,000,000 until the claim is
resolved or the availability of the full $100,000,000 of coverage is
otherwise restored by policy renewal or otherwise. The cost of
exercising the option would be a PSC Cost.”

E. Existing Tax Assets. Section 8 (“Tax Credit”) of Schedule F to the EPI
Agreement is deleted.

F. Incentive-Based Compensation. Perot Systems will continue to administer its
incentive-based compensation program for Perot Systems Personnel for their
performance during 2004, 2005, and 2006 and UBS will continue to participate
pursuant to Section 5(h) of the EPI Agreement. As to the program for 2006, on
or before March 1, 2007, UBS will make the incentive payments designated by
Perot Systems for former Perot Systems Personnel who have become UBS Personnel
directly to such personnel, and at the same time will pay the amount of the
incentive payments designated for other former Perot Systems Personnel to Perot
Systems, and Perot Systems will make such incentive payments itself.

IV. Services

This Article IV shall take effect on the Transition Date.

A. Services; Projects.

1. The definition of “Scope of Services” in Section 3(g) of the EPI
Agreement is deleted.

2. The definition of “Services” in Section 3(i) of the EPI Agreement,
Section 1.7 of Amendment No. 1 to the EPI Agreement and Section 1.1(ai)
of the MOA are each amended to state as follows:

“Services” mean, collectively, (i) Information Technology services
in support of Operational Management, including projects,
performed by Perot Systems Personnel and managed directly by ITI
production management or Investment Bank production management to
support members of the UBS Group; and (ii) Additional MDS
Services; provided, however, that projects awarded to Perot
Systems pursuant to a competitive bid process shall not be
considered part of the Services.

3. Sections 5(a), (b) and (f) of the EPI Agreement are revised
to state as follows:

(a) PSC will make available to SBC Entities, for their use in
accordance with Article IV of the Master Operating Agreement, any
PSC Systems used by PSC in providing the Services.

18

 

(b) PSC will provide the Services (including by using all
commercially reasonable efforts for making available in a timely
fashion qualified Perot Systems Personnel to perform, and to
respond to SBC’s reasonable requests for, Services) (i)
contemplated by the PSC Costs Budget (as such term is defined in
Schedule F hereto) and, where applicable, will use reasonable
efforts to meet any service levels mutually established for those
Services or (ii) for which SBC agrees to otherwise pay PSC in
accordance with Schedule F hereto. It is the sole responsibility
of SBC to manage and prioritize the Services and to ensure that
the Budget is sufficient for the desired Services. Additionally,
and notwithstanding anything else in this EPI Agreement to the
contrary, SBC will pay PSC in accordance with Schedule F,
including the quarterly adjustment provisions thereof, for any
Services provided by PSC to SBC whether the amounts for those
Services are or are not included in a PSC Costs Budget. Subject
to the foregoing, PSC agrees that it will abide by any cost
approval processes of which PSC may receive notice from SBC from
time to time within a reasonable period of time after receipt
thereof.

(f) PSC will timely provide SBC with a quarterly performance
report, in a form and with content mutually established by the
parties.

4. As a result of the amendments to the Services provided by Perot
Systems and the deletion of the concept of “Scope of Services,” several
related amendments are hereby made to the MOA and EPI Agreement, in
addition to amendments to such agreements specified elsewhere in this
Agreement:

a. The following provisions of the EPI Agreement are deleted:

(i) Sections 3(c) (definition of “Moves and Restacks”),

(ii) 3(d) (definition of “Performance Metrics”),

(iii) 3(h) (definition of “Service Levels”),

(iv) 5(c),

(v) 5(g),

(vi) 6(a) and (d)

(vii) Schedule A (“PSC Services”),

(viii) Sections 3 and 7 of Schedule C (“SBC
Responsibilities”),

(ix) Section 1 of Schedule D (“Additional PSC
Responsibilities”),

(x) Section 1(c) of Schedule F (definition of “Equipment
and Facilities Budget”); Section 3(d) of Schedule F;
Section 8 of Schedule F; Schedule G (“Performance
Metrics”),

(xi) Section 1.4 (Definition of “Moves and Restacks”) of
Amendment No. 1,

(xii) Section 5 (“Performance Metrics”) of Amendment No. 1,
and

(xiii) Exhibit A (“PSC Services”) of Amendment No. 1.
Subject to the first two sentences of Section III.A of this
Agreement, the Performance Metrics in the EPI Agreement
(including adjustments to the Annual Profit Amount under
Schedule G thereto) shall continue to apply to calendar
year 2004.

19

 

b. The following provisions of the EPI Agreement are amended as
follows:

(a) The title and preamble of the EPI Agreement are amended
to remove the phrase “Operational Management” and
references to the “SBC Warburg Division”,

(b) Section 5(h) (“PSC Obligations and Performance
Metrics”) is amended to delete the words “Warburg Division”
in the second line,

(c) Section 1 of Schedule C (“SBC Responsibilities”) is
amended to read: “Establish appropriate requirements for
the Services, including priorities and management of such
requirements, and communicate the same to Perot Systems.”

(d) Section 4 of Schedule C (“SBC Responsibilities”) is
amended to read: “Supply to PSC for processing required
data with applicable control totals as may be required by
PSC to provide the Services.”,

(e) Section 8 of Schedule C (“SBC Responsibilities”) is
amended to read: “Provide access control and physical
security at locations provided or controlled by SBC,
including such security as may be required in connection
with the performance of the Services.”,

(f) Section 2 of Schedule D (“Additional PSC
Responsibilities”) is amended to read: “Cooperate and
consult with and assist SBC in establishing the PSC Costs
Budget as described in Appendix 1 to Schedule F to this EPI
Agreement.”,

(g) Section 2 of Schedule F (“Budget and Capacity
Planning”) is amended to read: “The PSC Costs Budget will
be established in accordance with Appendix 1 to this
Schedule F;

(h) in paragraph (a) of Section 6 (“Invoices and Time of
Payment”) of Schedule F, the references to “Warburg
Division Member” are changed to “Entity” and the reference
to “Warburg Division” is changed to “Group member”;

(i) [omitted];

(j) in the first sentence of Section 9 (“Audit of Charges”)
of Schedule F, the reference to “SBC Warburg Division
Member” is changed to “SBC Group member”;

(k) Section 1.5 of Amendment No. 1 is amended to read:
“‘PSC Market Data Services Agreements’ mean the Reuters
Market Data Service Agreement assigned to Perot Systems
pursuant to this Amendment.”

(l) the third line of Section 2.1 of Amendment No. 1 is
amended to delete the phrase “or ‘Scope of Services’”;

(m) the second line of Section 3.1 of Amendment No. 1 is
amended to delete the phrase “Scope of”, and

(n) Section 3.9(a) of Amendment No. 1 is amended (1) to
insert the word “and” prior to “(ii)” and (2) to delete the
clause: “; and (iii) any failure by PSC to obtain UBS AG’s
approval as required under

20

 

Section 3.7 above prior to entering into a new PSC Market
Data Services Agreement.”

c. The following provisions of the MOA are deleted:

(I) Sections 1.1(z), (ae) and (ag) (Definitions of “SBC
Brinson Division”, “SBC Private Banking Division” and “SBC
Warburg Division”),

(II) Section 4.4(c) (“SBC Equipment”),

(III) Section 4.5 (“Additional Equipment”),

(IV) Section 4.6 (b) and (c) (“SBC Facilities”),

(V) Section 4.7 (“PSC Facilities”), and

(VI) Section 4.10 (“Resource Payments”).

d. The following provisions of the MOA are amended as follows:

(A) Section 1.1(g) (“EPI”) is amended to delete the phrase
“the operational management of”,

(B) Section 2.2 (“Term”) is amended to replace “December
31, 2008” with “January 1, 2007”,

(C) Section 6.3 (“Change Control Procedures”) is amended to
revise the last sentence read “These change control
procedures will provide that, except for Changes made on a
temporary basis to maintain the continuity of the Services,
the applicable PSC Entity will implement Changes only after
consultation and agreement with the applicable SBC
Entity.”, and

(D) Section 11.2 (“Binding Nature and Assignment”) is
amended to delete the clause “..., except that the
applicable SBC Entity may assign those portions of an EPI
Agreement (including to an SBC Entity) necessary to comply
with, and to the extent required by, Section 2.4(b)
hereof.”

e. The “Additional Services” letter agreement dated June 16, 2000,
the “Private Banking” letter agreement dated August 24, 2001, as
amended by the letter agreement dated 11 March 2004, and the
Memorandum of Understanding dated 14 April 2003 entitled “INET &
EDM Engineering Team Secondment to the UBS IMS Team” are
cancelled.

B. Requirements; Final Right of Refusal. Perot Systems shall provide the
Services on a non-exclusive basis. Each UBS Group member has the right to
perform itself, or retain third parties to perform, any information technology
or other services, including any of the Services. Accordingly, Sections 2 and
6(b) of the EPI Agreement are deleted; Section 4 of Schedule F of the EPI
Agreement is deleted; and Section 3.2 of the MOA is deleted.

C. Non-Competition. Section 4.2(d) of the Master Agreement is deleted.

21

 

V. Intellectual Property

This Article V shall take effect on the Effective Date.

A. SBC Systems. Section 4.1 of the MOA is amended to state as follows:

“4.1 SBC Systems.

“(a) SBC Parent represents that one or more members of the SBC
Group has all rights in and to the SBC Systems necessary to grant
to the members of the PSC Group the rights described in this
Section 4.1. SBC Systems will be and remain the property of the
members of the SBC Group. With respect to the Licensed SBC
Systems required by a PSC Entity to provide the Services under any
EPI Agreement, including those Licensed SBC Systems listed in the
applicable EPI Agreement, SBC Parent hereby grants to PSC Parent
and the applicable PSC Entity the non-exclusive right, at no
charge to PSC Parent or the applicable PSC Entity, to operate,
copy, modify or otherwise use those specified Licensed SBC Systems
in order to provide Services to the applicable SBC Entity pursuant
to that EPI Agreement.

“(b) The members of the SBC Group, with the cooperation and
assistance of the members of the PSC Group, will use all
commercially reasonable efforts to obtain any consents from third
parties necessary for the applicable PSC Entity to operate any
Licensed SBC Systems as contemplated by this Agreement.

“(1) Except as otherwise necessary to utilize the Licensed
SBC Systems as authorized by this Agreement, no member of
the PSC Group will at any time allow the Licensed SBC
Systems, or any of the various components thereof or any
modifications thereto, to be disclosed to third parties,
sold, assigned, leased or commercially exploited in any
way, with or without charge, by that member of the PSC
Group or its employees or agents or, except to the extent
required for normal operation of the Licensed SBC Systems,
to be copied or reproduced, in whole or in part, by any
person, firm or corporation, at any time.

“(2) The members of the PSC Group agree that the Licensed
SBC Systems are the valuable property of one or more
members of the SBC Group, that violation in any material
respect of any provision of this Section 4.1 would cause
the members of the SBC Group irreparable injury for which
they would have no adequate remedy at law and, in addition
to any and all other remedies or rights the members of the
SBC Group may have at law or in equity, the members of the
SBC Group will be entitled to preliminary and other
injunctive relief against any such violation.

22

 

“(c) [deleted]

“(d) No member of the PSC Group may use the Restricted Application
Systems for its own internal purposes or for any of its customers
(other than a member of the SBC Group), unless PSC Parent and SBC
Parent agree that such use is in the best interests of the parties
and agree in writing upon a mutually acceptable royalty structure.

“(e) Until the Transition Date, the PSC Group will operate and the
SBC Group will maintain the Restricted Application Systems and
related documentation. Until the Transition Date, the PSC Group
will maintain the documentation of each Licensed SBC System as
long as that Licensed SBC System is being operated and maintained
by the PSC Group hereunder. The PSC Group will not have access to
the source code for the Restricted Application Systems or system
documentation therefor. On and after the Transition Date, the SBC
Group will operate and maintain the Restricted Application
Systems, the Licensed SBC Systems, and related documentation.”

B. Rights in Developed Systems.

     Notwithstanding anything to the contrary in the MOA or the EPI Agreement,
the following shall apply to all Systems and incidental infrastructure software
programs developed by any PSC Group member for any UBS Group member under the
EPI Agreement (“Developed Systems”):

1. As of the Effective Date, Perot Systems (including other PSC Group
members) had developed and now owns in accordance with Section 4.2(a) or
(d) of the MOA all intellectual property rights in and to the Systems and
incidental infrastructure software programs listed on Schedule E to be
agreed by the parties within a reasonable time after the Transition Date.
Such Systems and incidental infrastructure software programs shall be
considered PSC Systems.

2. UBS owns all intellectual property rights in and to all other Systems
and incidental infrastructure software programs developed by any PSC
Group member for any UBS Group member under the EPI Agreement on or
before the Effective Date.

3. As prioritized by the SBC Group after January 1, 2005, Perot Systems
will as part of the Services provide UBS with copies in electronic form
of all documentation in its possession of each System and incidental
infrastructure software program developed by any PSC Group member for any
UBS Group member under the EPI Agreement, including all documented
processes and procedures for the operation and maintenance of such
Systems and programs.

23

 

4. If after the Effective Date either party (or any of its Affiliates)
acquires patent rights in a modification to a System or program listed on
Schedule E, that party (on behalf of itself and its Affiliates) shall and
hereby does agree not to enforce such patent rights against the other
party or its Affiliates to the extent necessary in order not to block the
other party or its Affiliates from creating and using independent
modifications and inventions.

5. UBS shall own all intellectual property rights in and to any Systems,
incidental infrastructure software programs, and modifications to such
Systems or programs developed by any PSC Group member for any UBS Group
member under the EPI Agreement after the Effective Date, unless otherwise
agreed by the parties for a specific System or program.

6. Residual Knowledge.

a. “Mental Impressions” means general ideas, concepts, know-how and
techniques relating to data processing and computer programming that are
learned and retained in the unaided memory of a party’s and its
Affiliates’ personnel involved in performance of the Agreement who have
had access to Confidential Information or materials of the other party
and its Affiliates without deliberately memorizing them for purposes of
reuse.

b. Each Party and its Affiliates may use the Mental Impressions of their
personnel in their business activities provided that in doing so they do
not disclose Confidential Information of the other party in violation of
Article IX of the MOA or misappropriate or infringe the intellectual
property rights of the other party, its Affiliates or third parties who
have licensed or provided materials to the other party or its Affiliates.

7. Section 4.2 of the MOA is deleted.

C. PSC Systems. Section 4.3 of the MOA is revised to state as follows:

“PSC Systems. PSC Parent represents that one or more members of
the PSC Group will have, at the time of the use of PSC Systems for
provision of the Services, all rights in and to the PSC Systems
necessary to use the PSC Systems that any member of the PSC Group
uses on behalf of members of the SBC Group and to license the PSC
Systems to the members of the SBC Group that PSC Parent is
obligated to license pursuant to this Section 4.3. PSC Systems
will be and remain the property of PSC Parent, and the members of
the SBC Group will have no rights or interests therein except as
described herein.

(1) During the term of an EPI Agreement, PSC Parent hereby grants
to SBC Parent, and SBC Parent will be deemed to accept from PSC
Parent, a nonexclusive, nontransferable, paid up, royalty free
license to access, use, copy, display, operate, maintain, support,
modify, enhance and prepare

24

 

derivative works of any PSC System used in connection with the
Services, subject to limitations on PSC Parent’s right to grant
such a license with respect to any PSC Systems or portions thereof
licensed to PSC Parent by a third party. PSC Parent will use all
commercially reasonable efforts to identify on Schedule E within a
reasonable time after the Transition Date, and obtain, any third
party consents necessary for members of the SBC Group to use such
PSC Systems, or portions thereof, as contemplated by the preceding
sentence.

(2) With respect to each EPI Agreement, subject to
limitations on PSC Parent’s rights to sublicense under any license
agreement for a PSC System licensed to PSC Parent by a third
party, PSC Parent hereby grants to SBC Parent, effective at the
termination of that EPI Agreement, a perpetual, nontransferable,
nonexclusive, paid up, royalty free license to access, use, copy,
display, operate, maintain, support, modify, enhance and prepare
derivative works of all Licensed PSC Programs (as defined below).
A “Licensed PSC Program” is any PSC System (in both source code
and object code form) that: (i) is being used by the applicable
PSC Entity in providing the Services at the termination of the
applicable EPI Agreement; (ii) was developed under the applicable
EPI Agreement; or (iii) was introduced by the applicable PSC
Entity into the information technology environment of any SBC
Group member in connection with the provision of Services and is
being used in the information technology environment of any SBC
Group member at the termination of the applicable EPI Agreement.

The licenses granted in paragraphs (1) and (2) above shall include
the right for third party vendors providing services to any SBC
Entity to use such PSC Systems as described above for the sole
benefit of the SBC Group. UBS agrees as follows with respect to
such PSC Systems:

(a) Except with the prior written consent of PSC Parent or to the
extent required by natural disaster or similar emergency, the PSC
Systems will not be operated, directly or indirectly, (i) by
persons other than employees or contract personnel of SBC Entities
or a third party vendor providing services to any SBC Entity, or
(ii) on equipment that is not under the control of any SBC Entity
or a third party vendor providing services to any SBC Entity.

(b) Except with the prior written consent of PSC Parent, the PSC
Systems may only be used for the internal operations of SBC
Entities.

(c) SBC Entities will keep the PSC Systems confidential, will not
at any time allow the PSC Systems, or any of the various
components thereof or any modifications thereto, to be disclosed
to third parties (except to contract personnel or third party
vendors as permitted herein), sold, assigned, leased or
commercially exploited or marketed in any way, with or without
charge, by the SBC Entity or its employees or agents.

25

 

(d) SBC Entities agree that the PSC Systems are the valuable
property of PSC Parent, that violation in any material respect of
any provision of this Section 4.3 would cause PSC Parent
irreparable injury for which it would have no adequate remedy at
law, and, in addition to any and all other remedies or rights PSC
Parent may have at law or in equity, PSC Parent will be entitled
to preliminary and other injunctive relief against any such
violation.”

D. Rights in Other Materials.

1. With respect to Other Materials (as defined below) developed by any
PSC Group member for any UBS Group member as part of the Services before
the Effective Date, such Other Materials will be and remain the property
of Perot Systems (the “PSC Other Materials”), and the members of the UBS
Group will have no rights or interests therein except as described
herein. Perot Systems hereby grants to UBS a perpetual, nontransferable,
nonexclusive, paid up, royalty free license to use, copy, display,
modify, enhance and prepare derivative works of the PSC Other Materials,
subject to any limitations on PSC Parent’s rights in PSC Other Materials
due to rights of third parties. Perot Systems will use all commercially
reasonable efforts to identify on Schedule E within a reasonable time
after the Transition Date, and obtain, any third party consents necessary
for members of the UBS Group to use, copy, display, modify, enhance, and
prepare derivative works of the PSC Other Materials as contemplated by
the preceding sentence. Such license shall include the right for third
party vendors providing services to any UBS Entity to use the PSC Other
Materials as described above for the sole benefit of the SBC Group. UBS
agrees as follows with respect to the PSC Other Materials:

a. Except with the prior written consent of Perot Systems or to
the extent required by natural disaster or similar emergency, the
PSC Other Materials will not be used, directly or indirectly, by
persons other than employees or contract personnel of UBS Entities
or a third party vendor providing services to any UBS Entity.

b. Except with the prior written consent of Perot Systems, the PSC
Other Materials may only be used for the internal operations of
UBS Entities.

c. UBS Entities will keep the PSC Other Materials confidential,
will not at any time allow the PSC Other Materials to be disclosed
to third parties (except to contract personnel or third party
vendors as permitted herein), sold, assigned, leased or
commercially exploited or marketed in any way, with or without
charge, by the UBS Entity or its employees or agents.

d. UBS Entities agree that the PSC Other Materials are the
valuable property of Perot Systems, that violation in any material
respect of any provision of this Section V.D.1 would cause Perot
Systems irreparable injury for which it would have no adequate
remedy at law, and, in addition to any

26

 

and all other remedies or rights Perot Systems may have at law or
in equity, Perot Systems will be entitled to preliminary and other
injunctive relief against any such violation.

2. UBS shall own all intellectual property rights in and to any Other
Material developed by any PSC Group member for any UBS Group member under
the EPI Agreement on or after the Effective Date.

3. “Other Materials” means literary works or other works of authorship
developed by any PSC Group member for any UBS Group member under the EPI
Agreement (excluding Developed Systems), such as manuals, training
materials, and other materials containing Perot Systems’ technical or
operational procedures, including the procedures manual and the change
control procedure.

E. No Effect on Other Licenses. The provisions of this Section V shall not be
construed to degrade or reduce any licenses or other intellectual property
rights specifically granted by a party (or any of its Affiliates) to the other
party (or any of its Affiliates) with respect to particular, identified
software or other materials under separate agreements (i.e., outside of this
Agreement, the MOA and EPI Agreement) entered into between the parties.

VI. Relationship

A. Governance. UBS consents to the appointment of Steve Adams as the
Designated PSC Employee under Section 4.1 of the Master Agreement. Section 8
of the EPI Agreement (“Operational Manager of SBC”) is deleted.

B. Preferred Vendor. Perot Systems will enter into a GFA for IT Services under
UBS’ “Preferred Vendor Program” (as the same may modified by UBS from time to
time by UBS in its sole discretion), qualifying Perot Systems for selection to
receive RFIs and RFPs issued by UBS for either competitive or single tender
among “Preferred Vendors”. For the avoidance of doubt, UBS may in its sole
discretion select which (and how many) of the Preferred Vendors (or other
suppliers) will receive a given RFI or RPP. Section 3.2 of the MPA is hereby
deleted.

C. Relationships with Competitors of the Other Party. Section 4.3 of the
Master Agreement is hereby deleted.

D. No Further EPI Agreements. Beyond the current EPI Agreement, the parties do
not intend to enter into further “EPI Agreements” as that term is used in the
MOA. Accordingly, Sections 3.1 (“Services”), 3.3 (“Terms of EPI Agreements”),
3.7 (“Future EPI Agreements”), and 4.9 (“Transfer of Personnel”) of the MOA are
deleted.

27

 

VII. Termination

A. General. This Agreement shall be read together with the Master Agreement,
the MOA, and the EPI Agreement. This Agreement may not be terminated separate
and apart from the termination of the EPI Agreement.

B. Termination. Sections 8.6 (“Termination for Cross-Default”) and 8.7
(“Termination for SBC Major Event”) of the MOA are deleted. Section 8.9 of the
MOA is revised to add the phrase ,“its obligations with respect to”, before
both references to “the Security Procedures”.

C. Termination Assistance. From termination of the EPI Agreement until the
Wind-up Date, Perot Systems will at UBS’s request use commercially reasonable
efforts to retain in its employment and to make available to UBS any
individuals who were Perot Systems Personnel at the date of termination of the
EPI Agreement, and UBS shall continue to pay Perot Systems for the PSC Costs in
accordance with Schedule F of the EPI of any such Perot Systems Personnel whose
roles are marked with an asterisk on Schedule B to the EPI Transition
Agreement, and shall pay Perot Systems for its reasonable commercial rates for
any other such Perot Systems Personnel.

Section 8.10 of the MOA is deleted.

VIII. Miscellaneous

A. Entire Agreement. This Agreement, together with the Master Agreement, the
MOA, the EPI Agreement, the MPA with its associated Project Agreements and task
orders, and the Global Framework Agreement, is the final, entire, and exclusive
agreement of the parties with respect to its subject matter. No change,
waiver, or discharge hereof shall be valid unless in writing and signed by an
authorized representative of the party against which such change, waiver, or
discharge is sought to be enforced. This Agreement does not modify and is not
modified by the Global Framework Agreement or any other agreements between UBS
and TSI.

B. Notices. Wherever under this Agreement, the Master Agreement, the MOA, the
EPI Agreement, the MPA, or the Stock Agreement one party is required or
permitted to give notice to the other, such notice shall be deemed given when
delivered by hand or when mailed by registered or certified mail, return
receipt requested, postage prepaid, and addressed as follows:

In the case of Perot Systems:

Perot Systems Corporation

2300 West Plano Parkway

Plano, TX 75075-8499

Attention: Ross Perot, Jr.

28

 

with a copy to:

Perot Systems Corporation

2300 West Plano Parkway

Plano, TX 75075-8499

Attention: General Counsel

In the case of UBS:

UBS, A.G.

677 Washington Boulevard

Stamford, CT 06901

Attention: Philip Freeborn

with a copy to:

UBS, A.G.

677 Washington Boulevard

Stamford, CT 06901

Attention: General Counsel

Either party hereto may from time to time change its address for notification
purposes by giving the other prior written notice of the new address and the
date upon which it will become effective.

Section 11.4 (“Notices”) of the MOA and Section 9 of the EPI Agreement
(“Notices”) are deleted.

C. Waiver. Section 11.12 (“Waiver”) of the MOA is replaced with the following:

“Waiver. No delay or omission by any Contracting Party hereto or to any
EPI Agreement to exercise any right or power hereunder or thereunder will
impair such right or power or be construed to be a waiver thereof. A
waiver by any Contracting Party hereto or to any EPI Agreement of any of
the covenants to be performed by the other or any breach thereof will not
be construed to be a waiver of any succeeding breach thereof or of any
other covenant herein or therein contained. Notwithstanding the
foregoing, each of PSC Parent (on behalf of itself and each PSC Entity)
and UBS Parent (on behalf of itself and each UBS Entity) hereby release
and waive any and all claims against the other party (and its Group
members) based upon or relating in any way to the Master Agreement, the
Master Operating Agreement, the Network Amendment, the EPI Agreement, the
“Additional Services” letter agreement dated June 16, 2000, the “Private
Banking” letter agreement dated August 24, 2001, as amended by the letter
agreement dated 11 March 2004, or the Memorandum of Understanding dated
14 April 2003 entitled “INET & EDM Engineering Team Secondment to the UBS
IMS Team” and occurring or arising prior to the Effective Date; provided

29

 

however, that the foregoing waiver shall not apply to: (i) claims
arising under the PSC Stock Agreement; or (ii) any Penalty Amount that
UBS Parent (or IB) may be permitted to assess pursuant to Schedules F and
G of the EPI Agreement that accrued in 2004, or any right that Perot
Systems may have that accrued in 2004, to dispute in arbitration and
litigation such Penalty Amount. Except as otherwise provided in this
Agreement or any EPI Agreement, all remedies provided for in this
Agreement and any EPI Agreement will be cumulative (with respect to
either this Agreement or that EPI Agreement) and in addition to and not
in lieu of any other remedies available to either party at law, in equity
or otherwise.”

D. Survival. The provisions of this Agreement, the Master Agreement, the MOA,
and the EPI Agreement that should survive the expiration or earlier termination
of this Agreement by their terms or by their nature, including provisions for
intellectual property, confidentiality, payments, indemnification, termination
assistance, the provisions of this Article VIII and dispute resolution, shall
survive.

E. No Third-Party Beneficiaries. The parties do not intend this Agreement to
create any rights or benefits enforceable by a third party against either party
or any of its affiliates, and in particular do not intend that Perot Systems
Personnel should be third-party beneficiaries of any rights, benefits, or
obligations under this Agreement.

F. Indemnification Procedures. The indemnification procedures of Section 10.5
of the MOA shall apply with respect to any indemnification obligations of a
party under this Agreement.

30

 

IN WITNESS WHEREOF, the parties have each caused this Agreement to be signed
and delivered by its duly authorized officer(s) as of the Effective Date.

	 	 	 	 	 	 	 
	PEROT SYSTEMS CORPORATION	 	UBS AG
	 
	 	 	 	 	 	 
	By:

	 	/s/ Ross Perot, Jr.	 	By:	 	/s/ Scott Abbey
	

	 	

	 	 	 	

	Title:

	 	President and CEO	 	Title:	 	Chief Technology Officer
	

	 	

	 	 	 	

	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	/s/ Gary Bullock
	

	 	 	 	 	 	

	

	 	 	 	Title:	 	Global Head of Logistics Infrastructure
	

	 	 	 	 	 	

31

 

Schedule A

Definitions

“Acquired Rights Directive Law” means in the European Union any Law
implementing EU Council Directive 77/187/EEC (as amended) and/or EU Council
Directive 2001/23/EEC or in any other Territory any Law governing the automatic
transfer of employees pursuant to a transfer of an undertaking .

“Additional MDS Services” is defined in Section 3 of the EPI Agreement as
amended by Section 1.1 of Amendment No. 1 to the EPI Agreement.

“Agreed Management Principles” means the principles set out in Schedule D, as
they may be changed by mutual agreement.

“Agreement” means this EPI Transition Agreement.

“Annual Profit Amount” is defined in Section 1(a) of Schedule F to the EPI
Agreement, as amended by this Agreement.

“Confidential Information” is defined in Section 1.1(d) of the MOA.

“Day,” whether or not capitalized, means calendar day unless otherwise
specified.

“Designated PSC Employee” is defined in Section 4.1 of the Master Agreement.

“Effective Date” means September 15, 2004.

“EPI Agreement” means the Second Amended and Restated Agreement for EPI
Operational Management Services, dated as of June 28, 1998, between Swiss Bank
Corporation and Perot Systems Corporation, as amended by Amendment No. 1 to
Second Amended and Restated Agreement for EPI Operational Management Services
dated as of September 15, 2000, between UBS AG and Perot Systems Corporation.
This definition supersedes any contrary definitions in the Master Agreement,
the MOA or the EPI Agreement.

“Equipment” is defined in Section 1.1(i) of the MOA.

“Expiration Date” means January 1, 2007.

“GFA” means the Global Framework Agreement between UBS and Perot Systems dated
as of the Effective Date.

“IB” or “Investment Bank” means the Investment Banking division of UBS.

“ITI” means the Information Technology Infrastructure organization within UBS.

32

 

“Law” means: applicable statutes, statutory instruments, regulations, or other
legislative provisions, including any delegated or subordinate legislation,
treaty or convention of the European Union, and the constitution of any
Territory; and any orders of, or any common law arising from the judgment of, a
relevant court or tribunal.

“Liability” means any award, claim, cost (including legal costs), damage, loss,
demand, expense, liability, interest, fine, penalty, or tax resulting from the
claim of a third party other than a UBS Group member or PSC Group member,
including reasonable attorneys’ fees, not to include any cost that has been
paid by UBS to Perot Systems as a PSC Cost.

“Master Agreement” means the Second Amended and Restated Master Agreement dated
as of June 28, 1998, between Swiss Bank Corporation and Perot Systems.

“MOA” means the Amended and Restated Master Operating Agreement dated as of
January 1, 1997, between SBC and Perot Systems, as amended by Amendment No. 1
dated as of September 15, 2000 between UBS and Perot Systems.

“MPA” means the Master Project Agreement between SBC and Perot Systems dated as
of January 1, 1996, and includes any GFA expressly superseding it.

“Network Services” is defined in Section 1(a) of Amendment No. 1 to the MOA.

“Obligation” means any Law and any applicable obligation under a contract or
collective labor agreement.

“Operational Management” is defined in Section 1.1(q) of the MOA, as amended by
Amendment No. 1 to the MOA.

“Operational Manager” is defined in Section 6.2 of the MOA.

“Perot Systems” means Perot Systems Corporation, a Delaware corporation.

“Perot Systems Personnel” means employees and contract personnel of Perot
Systems and its Affiliates who are assigned by Perot Systems to perform
Services, as well as managerial or administrative functions, in support of
Perot Systems’ contracts with UBS. “Perot Systems Personnel” excludes
employees and contract personnel who are hired by Perot Systems after August 1,
2004, to work on any task orders under the MPA or any GFA.

“PSC” means Perot Systems.

“PSC Costs” is defined in Section 1(d) of Schedule F to the EPI Agreement, as
amended by this Agreement.

“PSC Entity” is defined in Section 1.1(v) of the MOA.

33

 

“PSC Group” is defined in Section 1.1(u) of the MOA; provided that HWGA, Ltd.,
as defined in Section 1.1(j) of the MOA, shall not be deemed an Affiliate of
PSC Parent for purposes of this Agreement.

“Qualifying Revenues” is defined in Section III.B.2 of this Agreement.

“Relationship Manager” is defined in Section 6.1 of the MOA.

“Revenue Floor” is defined in Section III.B.2 of this Agreement.

“Revenue Forecast” is defined in Section III.B.2 of this Agreement.

“SBC” means Swiss Bank Corporation. UBS has succeeded to the rights and
obligations of SBC under SBC’s agreements with Perot Systems.

“Security Procedures” is defined in Section 1.1(ag) of the MOA.

“Services” is defined in Section IV.A.2 of this Agreement.

“Settlement Agreement” means an agreement which operates to waive and/or
compromise all and any Liabilities arising in connection with a member of Perot
Systems Personnel’s employment or engagement with Perot Systems or its
termination or any alleged employment or engagement by UBS of a member of Perot
Systems Personnel or UBS Personnel or its termination as may be validly waived
and compromised pursuant to the Law of the relevant Territory

“Severance Plan” means in respect of each Territory any plans, policies,
schemes, commitments, custom or practice (whether legally binding or not)
relating to redundancy which is more generous than the requirements of any
Obligations in respect of redundancy in the relevant Territory;

“Stock Agreement” means the Amended and Restated PSC Stock Option and Purchase
Agreement dated as of April 24, 1997.

“System” is defined in Section 1.1(al) of the MOA.

“Territories” means France, Germany, Hong Kong, Japan, Singapore, Switzerland,
the United States and the United Kingdom and “Territory” means any of them.

“Third Party Service Contracts” is defined in Section 1.1(am) of the MOA.

“Transition Date” means January 1, 2005.

“Transition Periods” means (i) for Perot Systems Personnel whose roles are
marked with an asterisk on Schedule B, the period from the Transition Date to
the Wind-up Date and (ii) for all other Perot Systems Personnel, the period
from the Transition Date to the

34

 

Expiration Date (inclusive) or, if earlier, the date on which the EPI Agreement
terminates.

“TSI” means Perot Systems TSI (India) Ltd. and its subsidiaries.

“UBS” means UBS AG, a corporation organized under the laws of Switzerland.

“UBS Entity” has the same meaning as “SBC Entity” as defined in Section 1.1(ac)
of the MOA.

“UBS Group” means UBS and each Affiliate of UBS, collectively.

“UBS Personnel” means any employee, officer, contractor, consultant or agent of
UBS or any other member of the UBS Group.

“Wind-up Date” means three months after the earlier of (i) the Expiration Date
or (ii) the date of any early termination of this Agreement.

35

 

Table 1

Agreements Remaining in Effect Between Parties as of Effective Date

This table is provided for the convenience of the parties in interpreting the
agreements between them. In case of any inconsistency between this table and
the text of the EPI Transition Agreement, the latter shall prevail.

As of the Effective Date of the EPI Transition Agreement and after giving
effect to its terms, the following are the other agreements remaining in effect
between the parties.

	1.	 	Second Amended and Restated Master Agreement, dated as of June 28, 1998.
	 
	2.	 	Amended and Restated Master Operating Agreement, dated as of January 1,
1997, as further amended by Amendment No. 1 to Amended and Restated Master
Operating Agreement, dated as of September 15, 2000.
	 
	3.	 	Second Amended and Restated Agreement for EPI Operational Management
Services, dated as of June 28, 1998, as further amended by Amendment No. 1
to Second Amended and Restated Agreement for EPI Operational Management
Services, dated as of September 15, 2000.
	 
	4.	 	Master Project Agreement, dated as of January 1, 1996.
For avoidance of doubt, the Master Project Agreement shall not apply to
any projects that are included in the definition of “Services” under
Section IV.A.2 of this EPI Transition Agreement.
	 
	5.	 	The following Project Agreements executed under the Master Project
Agreement, together with current task orders executed under them:

	 	a.	 	Project Agreement for UBS Asset Management, dated November 2,
2000, to be effective as of October 1, 2000.
	 
	 	b.	 	Project Agreement for Corporate Centre of UBS, dated June 15,
2000 to be effective as of January 01, 2000.
	 
	 	c.	 	Project Agreement for Network and Security Services (Post NSS
Transition), dated          to be effective as of January 2, 2001.
	 
	 	d.	 	Project Agreement for UBS O’Connor LLC, dated          , 2000 to
be effective as of October 1, 2000, between UBS O’Connor LLC and
Perot Systems.
	 
	 	e.	 	Project Agreement for the Private Banking Division of UBS,
dated November 27, 1998 to be effective as of June 29, 1998.
	 
	 	f.	 	Project Agreement for Global HR Call Centre, entered into 4
September 2002, to be effective 1 August, 2002.
	 
	 	g.	 	Project Agreement for UBS Capital, LLC, dated March 15, 1999,
between UBS Capital, LLC, and Perot Systems

 

 

	6.	 	Amended and Restated PSC Stock Option and Purchase Agreement, dated as of
April 24, 1997.
	 
	7.	 	License from Perot Systems to UBS dated August 10, 2001, to “use, with
the right to sub-license to any other member of the “UBS Group” (defined
in this license as “UBS AG and all entities controlled by UBS from time to
time”) the StageNet Software Suite.
	 
	8.	 	Global Framework Agreement, executed on August 16, 2004, between UBS and
Perot Systems TSI (India) Ltd., and any other agreements in effect between
UBS or any of its affiliates on the one hand and Perot Systems TSI (India)
Ltd. or any of its subsidiaries on the other hand.
	 
	9.	 	Global Framework Agreement, dated as of even date with the Effective
Date, between UBS and Perot Systems Corporation.
	 
	10.	 	The Rebillable Costs Agreements dated as of January 1, 1996, between SBC
and (i) Perot Systems S.A., a corporation organized under the laws of
France; (ii) the Hong Kong branch of Perot Systems Asia Pacific Pte. Ltd.,
a corporation organized under the laws of Singapore; (iii) Perot Systems
Asia Pacific Pte. Ltd., a corporation organized under the laws of
Singapore; (iv) Perot Systems (Japan) Ltd., a corporation organized under
the laws of Japan; (v) Perot Systems GmbH, a corporation organized under
the laws of Germany; (vi) Perot Systems Europe Limited, a corporation
organized under the laws of England; and (vii) Perot Systems A.G., a
corporation organized under the laws of Switzerland.

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