Document:

Exhibit 10.27

SOFTWARE LICENSE
AGREEMENT

This SOFTWARE LICENSE AGREEMENT (“Agreement”),
made as of the 3rd day of October, 2002 by and between Galileo
International, L.L.C., a Delaware
limited liability company with its address at 1 Campus Drive, Parsippany, New
Jersey (“Galileo”) and ITA Software, Inc., a
Delaware corporation with its address at 141 Portland Street, 7th
Floor, Cambridge, MA 02139 (“ITA”).

WHEREAS, ITA has developed a software product known as “ITA Travel
Planning Software” (as further defined below, the “Licensed
Software”), which has a capability to search, select, sort and price
air fares and determine seat availability; and

WHEREAS, Galileo operates global electronic distribution systems for
the travel industry, that, among other things, provide low-airfare searching to
travel agents, web sites, airlines, corporate travel departments, and their
respective customers; and

WHEREAS, Galileo wishes
to license the Licensed Software for use within its business so as to provide
low-airfare searching services to its customers; and

WHEREAS, Galileo wishes ITA to furnish services relating to operation
and/or maintenance of the Licensed Software and to supply and management of
data for the Licensed Software (provided that Galileo may also determine in the
future to assume from ITA responsibility for operating the Licensed Software);

NOW, THEREFORE, in consideration of the foregoing, the parties hereby
agree as follows:

1.     DEFINITIONS

(a)   “Acceptance Date”
means, with respect to any Version of the Licensed Software, the date when such
Version is accepted pursuant to the provisions of Section 4.

(b)  “Affiliate” of a party means an individual, corporation,
partnership, association, limited liability company or business that directly
or indirectly controls, is under common control with, or is controlled by such
party.  For purposes of this definition, “controls,”
“under common control with” and “controlled by” means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such entity, whether through ownership of voting securities or
otherwise. The term “Affiliate” shall also include any unconsolidated
special-purpose entities created by Cendant Corporation (“Cendant”)
or any of its subsidiaries, and/or independent persons or entities, in which
Cendant owns (or would own if Cendant were to convert any convertible
securities that Cendant owns) more than twenty-five percent (25%) of the
outstanding common stock (or equivalent).

(c) “Airline” means
an air carrier or a foreign air carrier (each as defined in the United States
Federal Aviation Act of 1958, as amended).

PORTIONS OF THIS EXHIBIT MARKED BY AN (***) HAVE BEEN
OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY, WITH
THE SECURITIES AND EXCHANGE COMMISSION.

 

(d)     “Airline Online Users” means customers of Airlines who gain
access to the Galileo System or other travel booking services of Galileo or its
Affiliates through web sites and/or other travel booking applications operated
by Airlines or Affiliates of Airlines.

(e)    “CPI Increase”
means the increase in the Consumer Price Index–All Items (as reported in the
Wall Street Journal) from a base of September, 2002 through September of the
year in which such increase is applied; provided that in the event a CPI
Increase is applied to a partial year, the increase will be prorated.

(f)    “Documentation”
means functional specifications, user manuals and similar written materials
relating to the use of the Licensed Software by Galileo that describes the
function and use of the License Software in sufficient detail to permit use of
the Licensed Software by a programmer reasonably skilled in the art, current
versions of which are found at http://doc.itasoftware.com.

(g)   “Domestic Version”
means a version of the Licensed Software which is capable of processing
low-fare searching and pricing queries that comprise origins and destinations
within the United States, Canada and Puerto Rico.

(h)    “Galileo System”
means the computerized global electronic distribution systems operated by
Galileo for providing information and reservation booking services to the
travel industry, including the collection, storage, processing, communication,
display and distribution of information regarding travel-related products and
services.

(i)    “Insolvency Event”,
with respect to either party, means any of the following: (i) such party
at any time ceases to conduct business in the ordinary course; (ii) such
party files a voluntary petition in bankruptcy or any voluntary proceeding
relating to insolvency, receivership, liquidation or composition for the
benefit of creditors; or (iii) such party becomes the subject of an
involuntary petition in bankruptcy or any involuntary proceeding relating to
insolvency, receivership, liquidation or composition for the benefit of
creditors, if such petition or proceeding is not dismissed within sixty (60)
days of filing.

(j)    “International Use”
means Galileo’s use of the International Version of the Licensed Software for
the purpose of serving Online Users and, if Galileo has accepted the Offline
Version, Offline Travel Agents.

(k)    “International Version”
means a version of the Licensed Software which is capable of processing
low-fare searching and pricing queries that comprise origins and/or
destinations outside the United States, Canada and Puerto Rico.

(l)     “License Fee Commencement
Date” means the earlier of (i) the Acceptance Date for the Online
Use or (ii) September 15, 2002.

(m)  “License Month”
means (i) in the case of the first License Month, the period beginning on the
License Fee Commencement Date and ending on the last day of the calendar month
following that in which the License Fee Commencement Date occurs; and (ii) in
the case of all subsequent License Months, each successive calendar month
during the license term.

 

2

(n)    “License Year”
means (i) in the case of the first License Year, the period beginning on the
License Fee Commencement Date and ending on the one-year anniversary of the
last day of the calendar month within which the License Fee Commencement Date
occurs; and (ii) in the case of all subsequent License Years, the successive
one-year periods beginning on the first day following the end of the preceding
License Year.

(o)   “Licensed Software”
means ITA’s Air Travel Planning software product and related software products,
as described in Exhibit A, and any Upgrade Releases, Enhancements,
or Customization provided hereunder or under the SLA.

(p)   “Offline License Fee”
has the meaning set forth in Section 6(b).

(q)   “Offline Use”
means Galileo’s use of the Licensed Software (excluding the International
Version) for the purpose of serving Offline Travel Agents.

(r)    “Offline Travel Agents”
means travel agencies (including corporate travel departments) and others who
(i) operate so-called “brick and mortar” offices (i.e.,
physical offices rather than web sites) at which they are contacted by their
customers, (ii) are in the business of providing travel-related services to
others, and (iii) have contracts with Galileo pursuant to which they gain
access to Galileo System for the purpose of obtaining air travel-related fare
and booking information and making bookings; provided, however, that “Offline
Travel Agents” specifically excludes Airlines. 
If an Offline Travel Agent also provides travel planning services to
Online Users, its offline and online activities will be governed by the
applicable provisions of this Agreement relating to Offline Travel Agents and
Online Users, respectively.

(s)    “Online License Fee”
has the meaning set forth in Section 6(a).

(t)    “Online Use”
means Galileo’s use of the Licensed Software for the purpose of serving Online
Users.

(u)   “Online Users”
means (i) end users of air travel-related services (i.e.,
persons planning travel for their own use, who are not in the business of
providing such planning services to others) who gain access to the Galileo
System or other travel booking services of Galileo and/or its Affiliates over
the World Wide Web through web sites and/or travel booking applications
operated by travel agents (including www.trip.com and www.cheaptickets.com),
corporations, Galileo, affiliates of Galileo, and/or other individuals or
entities that use or provide travel-planning services to end users over the
World Wide Web and (ii) Airline Online Users. 
Galileo agrees to notify ITA from time to time of those individuals and
entities to which it has made the Licensed Software available for use by Online
Users, and all PNRs created in the Galileo System by such Online Users of such
individuals and entities will be subject to the Online License Fee set forth in
Section 6(a)(i), regardless of whether the functionality of the Licensed
Software is made available in any particular transaction to any such Online
User.  If a travel agent (or other
individual and entity providing travel planning services over the World Wide
Web) is also an Offline Travel Agent, its offline and online activities will be
governed by the applicable provisions of this Agreement relating to Offline
Travel Agents and Online Users, respectively.

 

3

 

(v)   “PNR” means a
passenger name record created in the Galileo System resulting from the use of
the Licensed Software by Online Users and/or Offline Travel Agents, as
applicable, that includes one or more Airline travel segments, whether or not
it is subsequently cancelled.

(w)  “SLA” means the
Maintenance, Data and Operations Service Level Agreement dated the date hereof
and executed by the parties.

(x)    “SOW” has the
meaning set forth in Section 3(a).

(y)   “Upgrade Releases”
shall have the meaning set forth in the SLA.

(z)    “Version” means,
as the case may be, the Domestic Version or the International Version.

2.     LICENSE
GRANT

(a)   License Grant.  ITA hereby grants to Galileo a worldwide,
non-exclusive, irrevocable (except as expressly provided herein) license during
the term of this Agreement to use, perform and display the Licensed Software
and Documentation for the purpose set forth in the following sentence, in
accordance with the other terms of this Agreement.  Galileo may use the Licensed Software solely
for the purpose of providing travel planning services (i.e.,
in response to a query, searching for airfares by generating, sorting, pricing
and then selecting airline itineraries and, in connection therewith,
determining availability of selected flights, classes of service and booking
codes) to Online Users and Offline Travel Agents.  Galileo may use the Licensed Software in
conjunction with other software of Galileo or of third parties, provided that
no warranties of ITA hereunder shall extend to any such Galileo- or
third-party-provided software or to any problems that are caused by such
software or by the interface between the Licensed Software and such software.
Galileo shall have the right to make as many copies of the Licensed Software
and Documentation as it may need for archival purposes and, if it elects to
operate the Licensed Software, for operating the Licensed Software.  Galileo shall have the right to utilize one
or more third-parties to provide managed hosting services in connection with
its operation of the Licensed Software.

(b)   Restrictions.

(i)    Except as provided in Section 16(g), Galileo
shall not have the right to sublicense or transfer the Licensed Software;
provided that Galileo may permit the Licensed Software to be used or operated
on its behalf by an Affiliate engaged in the business of providing travel
planning services, subject to all the other terms and restrictions of this
Agreement.

(ii)   Galileo agrees that it shall not reverse
engineer, disassemble, decompile, modify (except under the conditions specified
herein), or profile the Licensed Software for any purpose whatsoever, nor will
Galileo implement or permit procedures such as “portscans”, “tiger attacks” or
other techniques designed to gain access to the Licensed Software (or to
computers running the Licensed Software) which have not been specifically
authorized by ITA.

 

4

(iii)  Except as expressly set forth in this
Agreement, and excluding Galileo Created Software (as defined in Section 5(b)),
Galileo shall not have any right to make, prepare or produce derivative works
of the Licensed Software, other than in the event that the source code for the
Licensed Software is released to Galileo pursuant to Section 11(b)(iii).

(iv)        Neither Galileo nor any Affiliate of
Galileo (for purposes of this subsection, as defined below) shall (i) license
or sublicense the Licensed Software, for Low Fare Searching or Guaranteed Fare
Pricing (as defined below), to any CRS Entity (as defined below), (ii) sell
Transactions (as defined below) to or otherwise perform Transactions for any
CRS Entity, or (iii) provide Low Fare Searching data processed using the
Licensed Software to or for any CRS Entity. 
However this restriction shall not be construed to prohibit Galileo from
licensing its own software with fare searching, shopping, or pricing
functionality to any CRS Entity or otherwise perform such functionality on
behalf of any CRS Entity using Galileo’s software.  The foregoing restrictions of this subsection
(iv) shall be inapplicable with respect to any CRS Entity that is an Affiliate
of Galileo.

As used in this subsection (iv):

“Affiliate” shall mean, when used with
respect to a specified Person, another Person that, directly or indirectly
through one or more intermediaries, controls or is controlled by or is under
common control with the Person specified. 
For purposes of this Agreement, the term “control” (including, with its
correlative meanings, “controlled by” and “under common control with”) shall
mean possession, directly or indirectly, of the power to direct or cause the
direction of management or policies (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise).

“CRS Entity” shall mean (i) any of the
computerized reservation systems providers listed at the end of this provision,
or any successor in interest, assign or renaming of any such provider, (a “CRS”), (ii) any Person (as defined below) which directly or
indirectly through one or more intermediaries, controls or is controlled by or
is under common control with any such provider, where the term “control”
(including, with its correlative meanings, “controlled by” and “under common
control with”) shall mean possession, directly or indirectly, of the power to
direct or cause the direction of management or policies (whether through
ownership of securities or partnership or other ownership interests, by
contract or otherwise) (a “CRS Affiliate”), or (iii) any company with which any
CRS has contractual commitments for the distribution of such CRS’ products and
services (a “CRS National Distribution Company”).  Notwithstanding the foregoing definition, an
air carrier or a foreign air carrier (each as defined in the United States
Federal Aviation Act of 1958, as amended) shall not be deemed a “CRS Entity”
for the purposes hereof.

“Person” shall mean any individual,
corporation, partnership, limited partnership, joint venture, limited liability
company, unincorporated association, government or regulatory body (or any
agency or political subdivision thereof) or other entity.

“Low Fare Searching” shall mean the
capability for retrieving flight information and selecting flights (which may
or may not include flight connections) optimized for cost based on, among other
things, one or more of the following: 
travel origin, travel destination, travel date, and/or class of service.

 

5

“Guaranteed Fare Pricing” shall mean
committing to a final price with one or more travel service providers for one
or more bookings, including all taxes, fees, and other charges.

“Transaction” shall mean an individual
Low Fare Searching query to the Licensed Software.

ITA and Galileo expressly agree that Amadeus Development Company, S.A.
(“Amadeus”) is an intended third party
beneficiary of this provision and Amadeus shall have the right to enforce this
provision as though it were a party hereto. 
Galileo acknowledges and agrees that (i) its breach of this provision
would cause irreparable injury for which monetary damages are not an adequate
remedy, and (ii) ITA and Amadeus shall be entitled to injunctive and other
equitable relief in the event of an actual or threatened breach of this
provision in addition to any other remedies that may be available.

List of
CRS Entities:  Abacus, Axess, Fantasia, Gemini, Genesis,
GETS, Infini, Sabre, Southern Cross, Worldspan.

(c)   Documentation.  When Licensed Software (including any Upgrade
Releases) is made available to Galileo, ITA shall supply, at no additional
charge, such Documentation (in electronic format) as it provides to its
customers generally.  If Documentation is
developed specifically for or at the request of Galileo, then the preparation
of such Documentation shall be undertaken pursuant to an SOW.  Galileo shall have the right, as part of the
license granted herein, to make such additional copies of the Documentation for
its own internal use as it may reasonably require.

3.     SERVICES

(a)   Statements of Work.  From time to time, Galileo may request, and
ITA will perform, services relating to the addition of features to the Licensed
Software (“Enhancements”) or changes to the
Licensed Software (“Customization”),
to conform the Licensed Software to Galileo’s specific needs, policies,
practices or operating environment; provided that such Enhancement and
Customization relate to the use of the Licensed Software within the scope of
license granted under this Agreement. 
ITA will, upon Galileo’s request, dedicate a certain number of its
development staff to the performance of such services, as follows:  the greater of (***) full-time equivalents
(FTEs) (calculated on a monthly basis), or (***) of ITA’s development staff,
except that no more than (***) FTEs shall be dedicated unless Galileo is using
the Licensed Software for both Online Use and Offline Use. Notwithstanding the
foregoing, ITA will not be obligated to dedicate such resources unless for each
FTE that Galileo requests ITA to dedicate, Galileo agrees to utilize (***) or
more hours of development services during the succeeding twelve months (it
being the parties’ intent that ITA not be required to hire personnel in order
to fulfill its obligations to Galileo whom ITA is not then able to retain
because Galileo’s need for such services has terminated). The provision of such
services shall be governed by statements of work agreed to by both parties, a
form of which is attached hereto as Exhibit B (“SOWs”).

6

 

(b)   Software Maintenance.  ITA shall provide software maintenance and
technical support services for the Licensed Software in accordance with the
provisions of the SLA.

(c)   Operations; Data.  ITA will host the operation of the Licensed
Software and will provide and manage data required for the operation of the
Licensed Software.  The provision of such
services will be governed by the SLA. 
Notwithstanding the foregoing, Galileo may at any time assume
responsibility for hosting the operation of the Licensed Software, pursuant to
the provisions of Section 7.3(b) of the SLA.

4.     DELIVERY
AND ACCEPTANCE

(a)   Delivery.  Prior to execution of this Agreement, ITA has
made the Licensed Software as it presently exists available to Galileo for
evaluation and testing and will deliver to Galileo Documentation relating
thereto within 10 days of the date hereof.

(b)   Testing.

(i) Domestic Online Use.  Galileo has begun, and will continue,
functional and operational testing of the Domestic Version for use by Online
Users. Following the execution hereof, in the event Galileo wishes ITA to
continue to provide cooperation and assistance to Galileo in performing its
evaluation, the parties will agree to the terms pursuant to which reasonable
cooperation and assistance will be provided. 
Upon the execution of this Agreement, Galileo shall either (I) accept
the Domestic Version; or (II) reject the Domestic Version and terminate this
Agreement; or (III) accept the Domestic Version contingent on ITA’s correcting
material non-conformities with the Documentation or other deficiencies
reasonably identified by Galileo at the time of such notice.  ITA shall have up to 60 days from the date of
the notice to correct such non-conformities or deficiencies.  If Galileo reasonably determines that such
non-conformities or deficiencies are not corrected by the earlier of (A) 10
days after the date ITA informs Galileo that it has completed such corrections
or (B) the end of such 60-day period, then Galileo shall either (I) accept the
Domestic Version; or (II) reject the Domestic Version and terminate this
Agreement.  Galileo will not have the
right to reject the Domestic Version at the end of such 60-day (or shorter)
period for any reason other than ITA’s failure to correct non-conformities or
deficiencies which were identified by Galileo in its notice.  Acceptance of the Licensed Software does not
waive Galileo’s right to receive maintenance and support hereunder and under
the SLA.

                                (ii)
Domestic Offline Use.  Following acceptance of the Domestic Version
for Online Use, Galileo shall have 180 days to evaluate the Domestic Version of
the Licensed Software for Offline Use. 
In the event Galileo wishes ITA to provide cooperation and assistance to
Galileo in performing its evaluation, the parties will agree to the terms
pursuant to which reasonable cooperation and assistance will be provided.  On or prior to the expiration of such 180-day
period, Galileo shall either (I) accept the Domestic Version of the Licensed
Software for use by Offline Travel Agents; or (II) reject the Domestic Version
of the Licensed Software for use by Offline Travel Agents, in which case those
portions of this Agreement pertinent to use of the Domestic Version by Offline
Travel Agents shall be null and void; or (III) accept the Domestic Version of
the Licensed Software for use by Offline Travel Agents contingent on ITA’s
correcting material non-conformities with the Documentation or other deficiencies

 

7

reasonably identified by Galileo at the time of such
notice.  ITA shall have up to 60 days
from the date of the notice to correct such non-conformities or
deficiencies.  If Galileo determines that
such non-conformities or deficiencies are not corrected by the earlier of (A)
10 days after the date ITA informs Galileo that it has completed such
corrections or (B) the end of such 60-day period, then Galileo shall either (I)
accept the Domestic Version for use by Offline Travel Agents; or (II) reject
the Domestic Version for use by Offline Travel Agents.  Galileo will not have the right to reject the
Domestic Version for use by Offline Travel Agents at the end of such 60-day (or
shorter) period for any reason other than ITA’s failure to correct
non-conformities or deficiencies which were identified by Galileo in its notice
on or prior to the expiration of such 180-day period.

                                (iii)  International Version.  Following acceptance or rejection of the
Domestic Version for Offline Use, Galileo shall have 180 days following ITA’s
delivery of the relevant Software to evaluate the International Version of the
Licensed Software. In the event Galileo wishes ITA to provide cooperation and
assistance to Galileo in performing its evaluation, the parties will agree to
the terms pursuant to which reasonable cooperation and assistance will be
provided. On or prior to the expiration of such 180-day period, Galileo shall
either (I) accept the International Version of the Licensed Software or (II)
reject the International Version of the Licensed Software and utilize only the
Domestic Version; or (III) accept the software contingent on ITA’s correcting
material non-conformities with the Documentation or other deficiencies reasonably
identified by Galileo at the time of such notice.  ITA shall have up to 60 days from the date of
the notice to correct such non-conformities or deficiencies.  If Galileo determines that such
non-conformities or deficiencies are not corrected by the earlier of (A) 10
days after the date ITA informs Galileo that it has completed such corrections
or (B) the end of such 60-day period, then Galileo shall either (I) accept the
International Version; or (II) reject the International Version.  Galileo will not have the right to reject the
International Version at the end of such 60-day (or shorter) period for any
reason other than ITA’s failure to correct non-conformities or deficiencies
which were identified by Galileo in its notice on or prior to the expiration of
such 180-day period.  Acceptance of the
International Version of the Licensed Software does not waive Galileo’s right
to receive maintenance and support hereunder and under the SLA.

5.       OWNERSHIP  OF SOFTWARE

(a)  Ownership of Licensed Software.  Galileo acknowledges that ITA is the sole and
exclusive owner of all rights in and to the Licensed Software and that other
than the license granted hereby, no proprietary rights, including but not
limited to copyrights and patents, in the Licensed Software are being
transferred to Galileo.  Galileo
acknowledges that it has been informed by ITA that ITA does not presently
develop software for the exclusive use of individual customers.  In the event ITA develops software for the
exclusive use of individual customers, then if Galileo has then satisfied the
conditions set forth in Section 3(a), ITA and Galileo shall negotiate in good
faith terms under which ITA will develop software for the exclusive use of
Galileo, and any such development shall be subject to the provisions of Section
3(a).

(b)  Ownership of
Galileo Created Software.  For
purposes hereof, “Galileo Created Software”
means one or more lines of code created by Galileo to interface with the
Licensed

 

8

Software. 
Galileo will be the sole and exclusive owner of all rights, title, and
interest in and to the Galileo Created Software; provided, however, that the
foregoing shall not be construed as a grant of any right, title, or interest of
Galileo in or to Licensed Software except as otherwise provided herein, and
shall not be deemed to expand the scope of any of the licenses granted
hereunder.

6.     FEES AND EXPENSES

(a)   Online License Fee.

(i) Per-PNR
License Fee. 
Beginning on the License Fee Commencement Date, Galileo shall pay ITA a
basic license fee for the Online Use (the “Online License Fee”)
which will be calculated based on the number of PNR’s created within the
Galileo System resulting from the use of the Licensed Software by Online
Users.  The Online License Fee will be (***) per PNR, subject to
the following discounts, based on the number of PNR’s created during any single
License Year:

	
  Number of PNR’s during Year

  	
   

  	
  Fee per PNR

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
   

  	
   

  	
   

  
	
  (***)

  	
   

  	
  (***)

  

(ii) License Fee Graduated. The Online License Fee will be
graduated; in other words, PNR numbers 1 through 2,000,000 will be priced at
$1.00 regardless of any discounts that may apply to higher volumes.

(iii) Minimum Online License Fee. 
Notwithstanding the number of PNR’s, the Online License Fee will be
subject to a minimum of (***) (or, if applicable, the amount determined in
accordance with section 6(d)(iii)) per License Year for the Domestic Version,
and an additional (***) (or, if applicable, the amount determined in accordance
with section 6(d)(iv)) per License Year for the International Version if and
when it is accepted by Galileo.  (The
minimum Online License Fee shall be prorated for any partial License
Year.)  If and when Galileo begins paying
the Offline License Fee provided in Section 6(b), then the minimum Online
License Fee pursuant to this clause (iii) will cease to apply and Galileo will
pay only the Online License Fee calculated pursuant to clause (i).

 

9

(iv) Payment Terms. 
Galileo shall pay the Online License Fee on a monthly basis in arrears,
as follows:  Within 25 days after the end
of each License Month, Galileo will certify to ITA the number of PNRs generated
by Online Users during such License Month, the cumulative number of PNR’s
generated by Online Users during the current License Year, and the amount of
Online License Fee owed for the previous License Month, which shall be an
amount equal to:

(A) the greater of:

(x) the Online License Fee calculated in accordance
with Sections 6(a)(i) and 6(a)(ii) above for the aggregate number of PNRs
created by Online Users year-to-date for the relevant License Year; or

(y) the prorated portion of the minimum Online License
Fee (i.e., year-to-date for the relevant License Year);

less

(B) the aggregate of the
Online License Fees previously paid in the relevant License Year.

Galileo has paid to ITA a
non-refundable advance in the amount of (***), which shall be applied to the
Online License Fees owed until it is depleted. 
Thereafter, Galileo will pay ITA, simultaneously with each such
certification, an amount equal to the Online License Fee due for the previous
month.  If at the end of any License Year
the aggregate amount paid by Galileo to ITA under this Section 6 exceeds the
amount owed, as calculated pursuant to subsection (a)(i), then ITA shall
promptly refund such excess.

Example:

Calculation
of year-to-date Online License Fee:

If at the
end of the 4th License Month in a License Year the PNRs total 4,200,000, then
the year-to-date Online License Fee would be (***), calculated as follows: (***).

Calculation
of year-to-date Minimum Online License Fee:

If only
the Domestic Version is in use, then the Minimum Online License Fee would be (***), calculated as
follows:  (***).

If both
the Domestic Version and the International Version are in use, then the Minimum
Online License Fee would be (***), calculated as
follows:  (***).

 

10

(*These
amounts are subject to adjustment as provided in Sections 6(d)(iii) and (iv).)

Calculation
of Amount Due for the License Month:  

Subtract
the aggregate amount of Online License Fees already paid during the relevant
License Year from the year-to-date Online License Fee.  In this example, if the aggregate Online
License Fees previously paid in the License Year (i.e., during the first three
License Months of the License Year) was (***), then the amount owed for
the 4th License Month would be (***), calculated
as follows:  (***).

End example.

(b)   Offline License Fee.  In the event Galileo uses the Licensed
Software to provide services to Offline Travel Agents, Galileo will pay (***)
fee therefor (the “Offline License Fee”)
in the amount of (***) for the Domestic Version and, if and when Galileo uses
the International Version, (***) for the International Version, plus (in either
case), beginning September 1, 2004, the CPI Increase.  The Offline License Fee will be payable in
cash in (***), in advance, with the (***) payable on the date Galileo begins
using the Licensed Software to provide services to Travel Agents (other than
Online Users).  Any (***) at the
beginning or the end of the license period will be (***).   The Offline License Fee will be in addition
to the Online License Fee payable pursuant to Section 6(a), except that the
Minimum Online License Fee will not apply from the date Galileo begins paying
the Offline License Fee.

(c)           Bundled License Fee.

(i) In lieu of the
foregoing Online License Fee and Offline License Fee, Galileo may elect to pay
a bundled fee for all components of the Licensed Software (the Online Use, the
Offline Use, and the International Version), as follows:  Galileo would pay to ITA an annual base
license fee for the Licensed Software in the amount of (***) (the “Annual Base License Fee”). 
The Annual Base License Fee will include the following uses or
functionalities of the Licensed Software: 
(A) the creation of up to (***) PNRs per License Year by Online Users
(with additional PNRs above (***) being charged pursuant to the provisions of
clause (ii) below); and (B) (***) both the Domestic Version and the
International Version of the Licensed Software by Offline Travel Agents.  In the event Galileo elects to pay the Annual
Base License Fee, Galileo will use the Licensed Software in a manner generally
consistent with its existing offline business model (measured in terms of
look-to-book productivity or a similar metric, which the parties will agree at
the time of election and which Galileo will implement sufficient technical
capabilities to measure).  Galileo’s
failure to use the Licensed Software in a manner generally consistent with its
existing offline business model will entitle ITA to impose a (***) fee ((***)
not less than that contained in Section 6(b)) for use of the Licensed

 

11

Software by Offline Travel Agents.  In the event Galileo is not using the
International Version, then the Annual Base License Fee during the first year
following the License Fee Commencement Date will be reduced to (***) per
License Month until the date Galileo begins using the International Version or
the end of such one-year period, whichever first occurs.

(ii) Galileo will pay ITA an incremental fee of (***)
per PNR for each PNR in excess of (***) PNRs created by Online Users in any
License Year (the “Incremental PNR Fee”).  Galileo will be required to pay the
Incremental PNR Fee with respect to PNR’s in excess of the (***) on a monthly
basis in arrears, as follows:  Within 30
days after the end of each License Month, Galileo will certify to ITA the
number of PNRs created by Online Users during such License Month and the
cumulative number of PNR’s created during the current License Year.  In the event that, at the end of any License
Month, the cumulative number of PNRs generated during such License Year exceeds
(***) multiplied by the number of License Months then elapsed in such License
Year, then Galileo will pay ITA, simultaneously with such notification, an
amount equal to the number of excess PNRs multiplied by the Incremental PNR
Fee.

(iii) In the event ITA charges another customer an
incremental per-PNR fee for online usage which is less than the Incremental PNR
Fee, if such other customer is generating comparable PNR volumes to Galileo and
has agreed to minimum license fees that are not materially greater than those
provided herein, then ITA will so notify Galileo and the Incremental PNR Fee
will be prospectively (but not retroactively) reduced to an amount equal to
that paid by such other ITA customer.

(iv) Galileo shall have
30 days from the date it begins paying Offline License Fee pursuant to Section
6(b) to elect whether to accept the bundled pricing provided in this Section
6(c) or to continue paying the Online License Fee and the Offline License Fee
pursuant to Sections 6(a) and 6(b).  In
addition, Galileo shall have 30 days from the date it begins using the
International Version of the Licensed Software to elect whether to accept the
bundled pricing provided in this Section 6(c) or to continue paying the Online
License Fee and the Offline License Fee pursuant to Sections 6(a) and
6(b).  Galileo shall not have the right
to elect to pay the bundled license fee provided in this Section 6(c) except
during the two thirty-day periods described above.  In addition, Galileo’s election to pay the
bundled license fee pursuant to this Section 6(c) will be irrevocable, and
following its election to pay the bundled license fee, Galileo will not have
the option to return to paying the Online License Fee and the Offline License
Fee pursuant to Sections 6(a) and 6(b).

(d)           Amadeus Agreement.

(i) ITA is contractually
obligated, pursuant to its license agreement with Amadeus (the “Amadeus Agreement”) to charge Galileo annual payments that
are not less than Amadeus’ annual cost for the most comparable version of the

 

12

Licensed Software (i.e., the
Domestic Version, the International Version and/or “Guaranteed Fare Pricing”
(defined as “committing to a final price with one or more travel service
providers for one or more bookings, including all taxes, fees, and other
charges”)).  The Amadeus Agreement
provides that in calculating Amadeus’ annual cost, Amadeus must consider its
annual direct costs for developing, maintaining and supporting the Licensed
Software, excluding overhead charges related thereto and non-cash payments,
which costs Amadeus must certify to ITA annually.  ITA has not yet requested that Amadeus so
certify its costs, and has informed Galileo that based upon ITA’s estimate it
believes that the license fees provided in the preceding Sections 6(a), 6(b)
and 6(c) should be sufficient to satisfy ITA’s obligation not to charge Galileo
less than Amadeus’ annual costs. 
Following the execution of this Agreement, ITA will request that Amadeus
certify its annual costs.

(ii) In the event Amadeus
informs ITA that its annual costs are such that the license fees provided in
Sections 6(a), 6(b) and 6(c) do not satisfy ITA’s obligations under the Amadeus
Agreement, then effective 90 days from the date of such certification, the
license fees payable hereunder will be increased by the smallest amount
possible so as to satisfy the Amadeus Agreement; provided, however, that if
such increases cause the total license fees payable by Galileo hereunder to
increase by more than (***), then the parties will use reasonable efforts
(either through negotiations with Amadeus or otherwise) to effect the smallest
possible increase while not violating the Amadeus Agreement or, if such efforts
are unsuccessful, Galileo will have the option (exercisable any time prior to
the effective date of any such license fee increase) to terminate this
Agreement.  Such termination will not be
deemed a breach by either party, and upon such termination Galileo will be
entitled to termination assistance pursuant to Section 7(g), provided that
Galileo pays a license fee, during the period of such transition, that is equal
to the amount required to be charged pursuant to this Section 6(d).  The provisions of this Section 6(d)(ii) will
apply on each occasion (if more than one) that Amadeus asserts that the license
fees payable hereunder should be increased as a result of the provisions of the
Amadeus Agreement.

(iii) Galileo acknowledges that the amount ITA is
obligated to charge Galileo under the Amadeus Agreement will increase if
Galileo uses the Licensed Software for Guaranteed Fare Pricing (as defined in
(i) above).

(e)   Services to Airlines.  Notwithstanding anything herein to the
contrary, the charges set forth in Section 6(a) (or, if Galileo has elected
bundled pricing, 6(c)) shall include Galileo’s use of the Licensed Software to
provide services to (***) at the (***) web site, but will not include use of
the Licensed Software to provide services to (***) airport or city ticket
offices (“ATOs/CTOs”) nor to provide such
services to any other Airlines’ web sites or ATOs/CTOs, unless Galileo is then
paying ITA total license fees of at least (***) annually.  In the event that, at a time when Galileo is
not paying ITA total license fees of at least (***) annually, Galileo wishes to
provides services to any Airline’s web site (other than (***)) or any Airline’s
ATOs/CTOs, using the Licensed Software, then the following provisions will
apply to the pricing thereof: (i) Galileo will aggregate, for the purpose

 

13

of determining the per-PNR charge and the discount
applicable thereto pursuant to Section 6(a)(i), the PNRs created by such
Airline(s) with all other PNRs created by Galileo, and (ii) such per-PNR
charges will be subject to monthly minimums (in addition to any minimums
applicable to Galileo’s Online Use pursuant to Section 6(a)(iii)), as follows:
(A) in the case of any Airline that carries more than 10 million passengers per
year, as reported by Airline Transport World (“ATW”), Galileo will pay ITA a
minimum of (***) per month for each Airline to which it provides services using
the Licensed Software; (B) in the case of any Airline that carries more than 3
million but fewer than 10 million passengers per year, as reported by ATW,
Galileo will pay ITA a minimum of (***) per month for each Airline to which it
provides services using the Licensed Software; and (C) in the case of any
Airline that carries fewer than 3 million passengers per year, as reported by
ATW, Galileo will pay not be obligated to pay ITA any monthly minimum and
instead pay only for PNRs actually created.  
In the event ITA licenses to an airline software which is substantially
similar to the Licensed Software, at an effective price which is lower than
that provided hereunder or on more favorable terms (provided that such price
and terms shall be considered as a whole), ITA shall prospectively (but not
retroactively) reduce the price to be charged to Galileo and/or revise the
terms such that, considered as a whole, they are at least as favorable as that
granted to such third party. In determining whether software is “substantially
similar” or whether the terms charged to a third party are “more favorable,”
ITA will take into account, in addition to the minimum license fee, the number
of transactions for which a licensee is using the software, the duration of the
license, the amount of integration work required, the expected volume of
transactions, and whether or not there is a per-transaction component to the
pricing.

(f)    Services.  Galileo shall pay ITA the fees set forth in
the applicable SOW for any services provided pursuant to
Section 3(a).  Time will be billed
at ITA’s then-standard rates.  Presently
such rates are (***) per hour for regular developers and (***) per hour for
senior developers.  Notwithstanding the
foregoing, the rates charged for services under any SOW shall not exceed the
lowest rate that ITA charges any other customer (other than one customer to
which ITA is contractually obligated to charge (***) per hour for certain
services, and a second customer whose rate ITA is in the process of increasing
to (***)).  Senior Developers are defined
as those developers who have at least five years of paid professional software
programming experience.

(g)   Reimbursable Costs and
Expenses.  Unless otherwise
specified in the applicable SOW, in addition to the hourly rates described in
the applicable SOW, Galileo shall pay ITA’s
actual out-of-pocket expenses incurred by ITA in rendering services to Galileo
hereunder, including without limitation costs of travel, provided that such expenses are incurred in
accordance with Galileo’s then-current standard policy regarding such
reimbursable expenses (advance notice of any modifications to which
Galileo agrees to provide to ITA).  ITA agrees to provide Galileo with access to
such original receipts, ledgers, and other records as may be reasonably
appropriate for Galileo or its accountants to verify the amount and nature of
any such expenses.

(h)   Maintenance; Data;
Operations.  Charges relating
to provision of maintenance and support of the Licensed Software, provision and
management of data to the Licensed Software, and hosting and operation of the
Licensed Software (such as computers,

 

14

communications, facilities, monitoring, operational
support and maintenance, etc.) shall be set forth in the SLA.

(i)    Invoicing.  ITA shall invoice Galileo on a monthly basis
for all fees and charges accruing hereunder or pursuant to an SOW, and Galileo
shall pay all such invoiced amounts within thirty (30) days after receipt of
invoice.  Any overdue invoices will
accrue interest at the rate of 12% per annum from the date due until the date
actually paid.  In the event of a good
faith dispute as to any portion of an invoice, Galileo shall give written
notice to ITA, within fourteen (14) days after receiving such invoice, stating
the details of any such dispute and shall promptly pay any undisputed amount in
accordance with this Agreement.

(j)    Taxes.  Galileo shall be responsible for the payment
of any federal, state or local sales or use taxes assessed on the Licensed
Software or services provided under this Agreement; provided, however, that
Galileo shall not be liable for taxes based on ITA’s income.

7.     TERM
AND TERMINATION

(a)           Term of Agreement. 
The term of this Agreement shall commence on the date hereof, and this
Agreement and the license granted to Galileo hereunder and shall terminate, if
not renewed as provided below, at the end of three License Years.  Thereafter, this Agreement will remain in
effect for successive one-year renewal terms unless, within 90 days prior to
the end of the initial term or any renewal term, Galileo notifies ITA that it
does not intend to renew the license for the renewal term.

(b)           Term of SOWs.  Unless
specified otherwise in an SOW or earlier terminated in accordance with this
Agreement, each SOW shall remain in full force and effect until expiration of
this Agreement or until performance is completed and deliverables are accepted,
whichever is later.

(c)           Termination for Cause by Galileo. 
This Agreement and the license granted hereunder may be
terminated by Galileo for cause immediately by written notice in the event (i)
ITA materially breaches the confidentiality obligations set forth in Section 12
so as to cause material damage to Galileo and such breach cannot be cured or is
not cured within 30 days after such breach; (ii) ITA materially breaches its
obligation timely to perform Maintenance Services under the SLA (as defined in
the following paragraph); (iii) the Licensed Software has substantially ceased
to operate (as defined in the following paragraph); (iv) ITA is unable to
obtain availability data (as contemplated in Section 3 of the SLA) such that
the availability information generated by the Licensed Software is
substantially similar, in scope and quality, to that generated using the data
currently obtained from Worldspan; (v) the cost to Galileo of availability data
increases by more than the amount allowed under Section 6.2.4(e) of the SLA; or
(vi) an Insolvency Event occurs with respect to ITA.  In the event of termination by Galileo
pursuant to this Section 7(c), ITA shall refund to Galileo any license or other
fees paid by Galileo which have been paid in advance by Galileo and have not become
due and payable as of the effective date of termination.

For the purposes of clause (iii) of this Section 7(c), ITA shall be
deemed to have materially breached its obligation to provide Maintenance
Services if, on three separate

 

15

occasions during any month, or on two separate
occasions during each of three different months within any twelve-month period
(where, in each case, an “occasion” means a single problem or set of related
problems reported by Galileo within a twenty-four-hour period), ITA fails to
respond and apply resources to emergency problems (as defined in the SLA), and
ITA’s failure has an adverse affect on Galileo. 
In no event will ITA be deemed to have failed to respond and apply
resources to an emergency problem if, notwithstanding the response time or
amount of resources applied, ITA shall have resolved the problem within the
target resolution time set forth in the SLA.

For the purposes of clause (iv) of this Section 7(c), the Licensed
Software shall be considered to have “substantially ceased to
operate” if (A) the Licensed Software has failed of its fundamental
commercial purpose, (B) such failure is due to a software (and not an
operational or data) problem, (C) ITA shall have been unable, despite having
exercised the efforts required by Section 5.2 of the SLA, to resolve the
problem, and (D) such failure continues for a period of 15 days.

In the event of any dispute related to the circumstances justifying
either party’s right to terminate, no termination shall be effective until the
dispute resolution procedures set forth in Section 15 have been completed.

(d)           Termination for Cause by ITA.  This
Agreement and the license granted hereunder may be terminated by ITA for cause
immediately by written notice in the event (i) Galileo breaches the
confidentiality obligations set forth in Section 12 so as to cause material
damage to ITA and such breach cannot be cured or is not cured within 30 days
after such breach; (ii) Galileo breaches the payment obligations set forth in
Section 6 or in the SLA, the license restrictions set forth in Section 2, or
the provisions relating to source code restrictions and confidentiality set
forth in Section 12(c) and (d), and in any such case such breach (irrespective
of damage to ITA) is not cured within thirty (30) days (sixty (60) days in the
case of a payment default, provided that Galileo will make commercially
reasonable efforts to pay invoices in a timely fashion), after receipt of
written notice thereof from ITA; or (iii) an Insolvency Event occurs with
respect to Galileo.

(e)           Termination Due to Assignment or Change of Control.  A party may terminate this Agreement in the
event the other party either assigns this Agreement to a third party or Control
of the other party is transferred to a third party and
such party reasonably believes that the third party would be unable to perform
the other party’s obligations under the Agreement.  In addition, Galileo may terminate this
Agreement in the event ITA either assigns this Agreement to a third party or
Control of ITA is transferred to a third party and
that third party or any of its Affiliates owns or operates any of the
reservations systems or web sites listed in, or is one of the entities listed
in, listed in, Exhibit F (or a successor or assign or any such
entity).  In the case of any termination
pursuant to this Section 7(e), a party shall have 20 days from the date of its
receipt of notice of such assignment or change of Control to exercise its right
to terminate pursuant to this subsection by giving notice thereof to the other
party.  In the event of termination by
Galileo pursuant to the second sentence of this subsection, Galileo shall pay
to ITA, upon the effective date of termination, a termination fee equal to the
product of (x) (***); and (y) a fraction, the numerator of which is the number
of License Months

 

16

remaining in the term of the Agreement as of the
effective date of the termination, and the denominator of which is 36.

(f)            Termination of SOWs. 
Either party may terminate an SOW in the event the other party
materially breaches any provision thereof and fails to cure such breach within
thirty (30) days after receipt of written notice thereof from the non-breaching
party.

(g)           Duties on Termination. Upon termination of this Agreement
for any reason, Galileo shall, subject to the following, immediately cease use
of the Licensed Software, and all licenses granted hereunder shall immediately
cease and terminate.  Notwithstanding the
foregoing, upon termination of this Agreement for any reason other than Galileo’s
breach, ITA shall provide to Galileo, upon Galileo’s request, at ITA’s
then-standard rates and upon Galileo’s continued payment of the Online License
Fee and, if applicable, the Offline License Fee, pursuant to Section 6(a),
reasonable termination assistance, including the right to continue to use the
Licensed Software as set forth herein, for a period of up to six (6) months
following the effective date of termination. 
Such termination assistance shall include, without limitation,
cooperating with third parties for the orderly transition to a new system in
order to minimize any disruption in the services provided by Galileo to Online
Users and, in the event Galileo has begun the Offline Use, to Offline Travel
Agents.  Termination assistance will also
be available in the event of termination by ITA of this Agreement pursuant to
Section 7(d), except that ITA will not be obligated to render any such termination
assistance unless and until (i) Galileo has cured, to ITA’s reasonable
satisfaction, any breaches that led to such termination and (ii) Galileo pays
any applicable license or other fees to ITA in advance, or otherwise provides
reasonable assurances to ITA that it will receive payment as required
hereunder.

(h)           Survival.  The parties’
rights and obligations under the following sections shall survive the
termination or expiration of this Agreement: 
5, 7, 9, 10, 12, 13, 15 and 16.

8.     REPRESENTATIONS
AND WARRANTIES

(a)   By Galileo.  Galileo represents and warrants to ITA that
it has the full right, power and authority to enter into this Agreement and to
perform its obligations hereunder and that Galileo’s compliance with the terms
and conditions of this Agreement will not violate any federal, state or local
laws, regulations or ordinances or conflict with any third party agreements.

(b)   By ITA.  ITA represents, warrants and covenants to
Galileo as follows:

(i)    Authority:  That: (1) ITA has the full right, power
and authority to enter into this Agreement, to carry out its obligations under
this Agreement and to grant the rights and licenses granted to Galileo in this
Agreement; and (2) ITA’s compliance with the terms and conditions of this
Agreement shall not violate any federal, state or local laws, regulations or
ordinances or conflict with any third party agreements.

(ii)   Quality:  That ITA shall perform all services in a
good, workmanlike and professional manner using people fully familiar with the
Licensed Software and the underlying technology.

 

17

(iii)  Infringement:  That the Licensed Software does not and shall
not infringe any third party’s patent, trademark, trade name, service mark,
copyright, trade secret or any other intellectual property right of a third
party.  In the event that any such
infringement claim or suit is brought or threatened, ITA shall, at its expense,
(1) procure for Galileo the right to continue using the Licensed Software; (2)
replace or modify the Licensed Software so that it becomes non-infringing but
remains substantially equivalent in functionality and performance; or (3) in
the event (1) and (2) are not commercially practicable, terminate this
Agreement and the license granted hereunder and refund to Galileo all unearned
license fees then paid by Galileo and any fees for maintenance services not yet
performed as set forth in the SLA.  Other
than ITA’s obligation to indemnify Galileo pursuant to Section 9, the
provisions of the preceding sentence shall be Galileo’s sole remedy in the case
of a claim of infringement.

(iv)  Century Compliance:  That the century change is, and shall be,
supported in the Licensed Software’s logic and data, and that the Licensed
Software shall support the use, entry or creation of dates prior to, on, after
or spanning January 1, 2000, so that when such a date is either processed
(including by way of calculation, comparison, sequencing, display, storage or
otherwise), entered into, or is intended to be generated as a result of the operation
of the Licensed Software, the Licensed Software shall not (1) fail or
produce incorrect date results, or (2) cause any other programs, hardware
or system to fail or to generate errors.

(v)   Unauthorized Code:  That the Licensed Software shall be free, at the
time of receipt by Galileo, of (1) any automatic restraints, computer viruses,
software locks, time bombs or other such code that hinders Galileo’s freedom
fully to exercise its license rights under this Agreement; (2) harmful programs
or data incorporated into the Licensed Software which destroy, erase, damage or
otherwise disrupt the normal (i.e., in accordance with the provisions of this
Agreement) operation of the Licensed Software or other programs, hardware or
systems utilized by Galileo or allow for unauthorized access to the Licensed
Software or other programs, hardware or systems utilized by Galileo; or (3) any
mechanism, such as password checking, CPU serial number checking or time
dependency, that hinders Galileo’s freedom to fully exercise its license rights
under this Agreement.  The foregoing
provisions of this paragraph (v) shall not be deemed violated by license files
that disable functions in the Licensed Software which are not included in the
license grant to Galileo hereunder.

(vi)  Pass-Through:  ITA hereby assigns, and shall assign, to
Galileo all warranties, representations and indemnities granted to ITA by third
parties in the Licensed Software or any components thereof, and all remedies
for breach of such warranties, representations and indemnities.

(vii) As Documented:  The Licensed Software will in all material
aspects conform to and operate in accordance with the Documentation.   Upon receipt from
Galileo of notice of a breach of this warranty, ITA will attempt to correct the
breach in accordance with the provisions of the SLA;

(viii)                No Litigation:  ITA is not a party to any litigation,
arbitration, or other proceeding regarding the Licensed Software.

 

18

(c)   Disclaimer.  EXCEPT FOR THE WARRANTIES SET FORTH IN THIS
SECTION 8, EACH PARTY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS AND IMPLIED,
INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.

9.     INDEMNIFICATION

(a)  By ITA.  ITA shall, at
its own expense, defend, indemnify and hold harmless Galileo, its Affiliates,
and their respective directors, officers, employees, successors and permitted
assigns from and against any and all liabilities, damages, awards, losses,
costs and expenses (including court costs and reasonable attorneys’ fees)
arising out of any claim, demand, suit or cause of action (hereinafter a “Claim”) brought by a third party relating to or resulting
from (i) any act or omission of ITA or its employees, agents or contractors,
(ii) any breach of the representation and warranty made in Section 8(b)(i) by
ITA; or (iii) the actual or alleged infringement by the Licensed Software of a
third party’s patent, copyright, trademark, service mark, trade secret or other
proprietary rights.

(b)   By Galileo.  Galileo shall, at its own expense, defend,
indemnify and hold harmless ITA, its Affiliates, and their respective
directors, officers, employees, successors and permitted assigns from and
against any and all liabilities, damages, awards, losses, costs and expenses
(including court costs and reasonable attorneys’ fees) arising out of any Claim
brought by a third party relating to or resulting from (i) any act or omission
of Galileo or its employees, agents or contractors, or (ii) any breach of the
representation and warranty made in Section 8(a) by Galileo.

(c)   Indemnification Procedures.  If any party entitled to indemnification
under this section (an “Indemnified Party”)
makes an indemnification request to the other, the Indemnified Party shall
permit the other party (the “Indemnifying Party”)
to control the defense, disposition or settlement of the matter at its own
expense; provided that the Indemnifying Party shall not, without the consent of
the Indemnified Party, enter into any settlement or agree to any disposition
that imposes any conditions or obligations on the Indemnified Party other than
the payment of monies that are readily measurable for purposes of determining
the reimbursement obligations of the Indemnifying Party.  The Indemnified Party shall notify the
Indemnifying Party promptly of any claim for which the Indemnifying Party is
responsible and shall reasonably cooperate with the Indemnifying Party to
facilitate the defense of any such claim. 
An Indemnified Party shall at all times have the option to participate
in any Claim through counsel of its own selection and at its own expense.

10.  LIMITATION
OF LIABILITY

                IN NO EVENT SHALL EITHER PARTY
BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR FOR
ANY DAMAGES RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN CONTRACT,
TORT, STRICT LIABILITY OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.  IN NO EVENT
SHALL EITHER PARTY’S LIABILITY TO THE OTHER PARTY FOR DAMAGES IN CONNECTION WITH
THIS AGREEMENT AND THE SLA IN THE AGGREGATE EXCEED THE AMOUNT OF

 

19

LICENSE
FEES AND CHARGES FOR MAINTENANCE, DATA, AND OPERATIONS SERVICES PAID BY GALILEO
TO ITA DURING THE PREVIOUS (***) MONTHS PURSUANT TO THIS AGREEMENT AND THE SLA,
WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.  THE LIMITATIONS CONTAINED IN THIS SECTION
SHALL NOT APPLY TO THE PARTIES’ INDEMNIFICATION OBLIGATIONS SET FORTH IN
SECTION 9, A BREACH BY EITHER PARTY OF SECTION 12 (CONFIDENTIALITY), A BREACH
BY GALILEO OF SECTION 6 (FEES AND EXPENSES) OR SECTION 11 (d) (CONFIDENTIALITY
OF SOURCE CODE) OR THE WILLFUL OR RECKLESS ACTS OF EITHER PARTY.

11.  SOURCE
CODE ESCROW

(a)   Escrow.  Within thirty (30) days after the execution
of this Agreement, ITA shall place a current, complete, and accurate copy of
all source code for the Licensed Software in escrow with a nationally
recognized escrow agent for the benefit of Galileo.  The materials placed in escrow shall include
a computer readable copy of the source code for each of the programs comprising
the Licensed Software, as well as complete program maintenance documentation,
including all technical manuals and release notes.  Thereafter, ITA shall deliver to the escrow
agent at the time of each new version of the Licensed Software all source code
for each update, bug fix, Upgrade Releases, Enhancement, Customization, release
or version of the Licensed Software, and no less often than on the anniversary
of the date of this Agreement, ITA shall deliver to the escrow agent a fully
updated copy of all source code for the Licensed Software.  Such additional source code deposits together
with the original source code deposit and any other materials placed in escrow
pursuant to this Agreement shall be referred to herein as the “Deposited Materials.” 
Galileo shall bear the costs charged by the escrow agent for such source
code escrow.

(b)   Release.  The escrow agreement shall provide for
release of the Deposited Materials to Galileo upon the occurrence of any of the
following: (i) an Insolvency Event occurs with respect to ITA; (ii) ITA
notifies Galileo of its intent to cease to provide maintenance and support
services for a material portion of the Licensed Software, or ITA fails, for a
period of thirty days after notice, to make available to Galileo Upgrade
Releases which are generally made available to other ITA licensees, or ITA
fails, for a period of thirty days after notice, to provide Maintenance
Services to Galileo in compliance with Section 2.1(i) of the SLA; (iii) ITA
fails to provide resources to perform customization of the Licensed Software
requested by Galileo pursuant to Section 3(a) (but only to the extent and under
the conditions set forth in Section 3(a)), and such failure continues for 60
days after written notice by Galileo; (iv) ITA is prevented by an event of
Force Majeure (as defined in Section 7.4 of the SLA) from performing
Maintenance Services for a period of 90 consecutive days; or (v) that part of
ITA’s (or its successors’ or assigns’) business that operates and/or maintains
the Deposited Materials ceases to be conducted in the ordinary course.  If the event which allows Galileo to obtain
the Deposited Materials from escrow also constitutes a breach which would
entitle Galileo to terminate this Agreement pursuant to Section 7(c), then
Galileo’s election to obtain the Deposited Materials from escrow will operate
as a complete waiver of Galileo’s right to terminate as a result of such
breach.

 

20

(c)   Impact on Fees/Charges.  In the event the Deposited Materials are
released to Galileo, then Galileo will be obligated to continue paying the
Online License Fee and, if applicable, the Offline License Fee under Sections
6(a) and 6(b), respectively, for as long as this Agreement remains in effect;
provided, however, that in the event that the Deposited Materials are released
as a result of the occurrence of one of the events set forth in Section
7(b)(ii) or Section 7(b)(v), then ITA will be relieved of the obligation to
perform Maintenance Services under the SLA and the License Fee shall be reduced
by an amount equal to the lesser of: (i) the actual, direct costs incurred by
Galileo to perform the Maintenance Services itself; and (ii) (***).

(e) Return of Deposited
Materials.  In the event this
Agreement terminates after Galileo has received source code from escrow, then
upon such termination, in addition to the provisions of Section 7(g), Galileo
will either return to the escrow agent all copies of the source code (other
than source code written by Galileo as contemplated by Section 11(f)) or will
certify to ITA that all copies of the source code (other than source code
written by Galileo as contemplated by Section 11(f)) have been destroyed.

(f)    Restrictions.  In the event the Deposited Materials are
released to Galileo, Galileo shall have the right to use the Deposited
Materials only for the following purposes: (i) to continue operating the
software in accordance with the license granted hereunder; (ii) to correct
bugs, errors, defects or malfunctions in the Licensed Software; (iii) to modify
the Licensed Software to comply with regulatory requirements or industry
standards; and (iv) to perform the maintenance and support services that ITA was
to perform under this Agreement and the SLA, including without limitation the
development of Upgrade Releases, Enhancements, and Customizations; provided,
however, that any modification by Galileo of the Licensed Software shall excuse
ITA from any further performance of its maintenance and support obligations
with respect to such portions of the Licensed Software that were modified by
Galileo.  Unless otherwise provided in
this Agreement, the scope of and restrictions on the licenses granted
hereunder, and the intellectual property rights of the parties, shall continue
to be as set forth in Section 2 and 5, provided that Galileo shall own all
source code and object code developed by or for Galileo after the release of
the Deposited Materials to Galileo.  In
addition, the following provisions will apply in the event source code is
released to Galileo:

(i)    Galileo may make copies of the Licensed
Software for staging, back-up, disaster recovery, testing or archival purposes,
and as necessary to utilize the Licensed Software in its business.

(ii)   Galileo shall be permitted to use (including
via a network) the Licensed Software on a worldwide basis and on an unlimited
number of machines without restriction as to the number of users, but only
subject to the restrictions and limitations contained herein.

The
foregoing restrictions are in addition to any restrictions imposed on
Confidential Information pursuant to Section 12.

(g)   Confidentiality.  The escrow agreement (or a separate agreement
entered into among the escrow agent, ITA and Galileo) shall also include
reasonable provisions for

 

21

maintenance by Galileo of
the confidentiality of the Deposited Materials in the event the Deposited
Materials are released to Galileo, including but not limited to requirements
that (i)  access to the source code and
documentation related to such source code (“Access”)
be limited only to those employees or third party contractors or outsourcers of
Galileo engaged in operating, maintaining, supporting and updating the Licensed
Software; (ii) Galileo shall maintain a list of all such individuals to whom
Galileo has granted Access and shall provide a copy of such list to ITA upon
ITA’s request; (iii) all such individuals shall, as a condition of and prior to
being granted such Access, execute a non-disclosure agreement containing
provisions at least as restrictive as those set forth in Section 12, and
Galileo shall maintain such agreements available for inspection and copying by
ITA upon reasonable request; and (iv) the Deposited Materials shall be stored
in a secure manner.

12.  CONFIDENTIAL
INFORMATION

(a)   Confidential Information.  Each party has disclosed (prior to the
commencement of this Agreement) and may disclose Confidential Information (as
defined below) to the other party that the other party shall maintain in
confidence in accordance with the provisions of this Section 12.  As used herein, each party which discloses
such information is referred to as a “Disclosing Party”
and each party which receives such information is referred to as a “Receiving Party.”  “Confidential Information” means Disclosing Party’s
confidential and proprietary inventions, products, designs and ideas, including
computer software, functionality, concepts, processes, internal structure,
external elements, user interfaces, technology and documentation, as well as
confidential and proprietary information relating to Disclosing Party’s
operations, plans, opportunities, finances, research, technology, developments,
know-how, personnel, and any third party confidential information disclosed to
Receiving Party.  Without limiting the
foregoing definition, the Licensed Software and the Documentation (except
Documentation reasonably expected to be provided to Online Users regarding the
use of the Licensed Software) are “Confidential Information” of ITA.  In addition, information about private fares
that Galileo makes available to certain customers is “Confidential Information”
of Galileo that may not be disclosed to any other parties.  The terms and conditions of this Agreement
are also “Confidential Information.” 
However, “Confidential Information” shall not include information
(a) already lawfully known to Receiving Party if the Receiving Party does
not then have a duty to maintain its confidentiality, (b) developed
independently by the Receiving Party, (c) generally known to the public
through no fault of the Receiving Party; (d) lawfully obtained from a
third party not obligated to preserve its confidentiality; (e) required to be
disclosed by law, regulation or order of a court of competent jurisdiction or
other governmental authority (except that prior to any such disclosure the
Receiving Party shall give the Disclosing Party notice thereof and afford the
Disclosing Party the opportunity to oppose any such disclosure).

(b)   Non-Disclosure.  Receiving Party acknowledges that
Confidential Information is confidential, proprietary and/or trade secret
information of the Disclosing Party. 
Receiving Party shall not use the Confidential Information for any
purpose other than in accordance with this Agreement, and shall not disclose
Confidential Information to anyone other than its employees and contractors who
legitimately need access to it and who have signed confidentiality agreements
comparable in scope to this Section 12. 
Receiving Party shall notify each of its employees and contractors who
are given access to Confidential Information that they

 

22

have an obligation not to disclose Confidential
Information and shall take such steps as are reasonably necessary to insure
compliance with this obligation. 
Receiving Party shall safeguard Confidential Information with reasonable
security means at least equivalent to measures that it uses to safeguard its
own proprietary information. Receiving Party shall store Confidential
Information in a safe and secure location. 
Receiving Party may not remove copyright, trademark, trade secret,
confidentiality, and patent notices from Confidential Information.

(c)   Breach of Confidentiality
Obligations.  Receiving Party
hereby acknowledges that unauthorized disclosure or use of Confidential
Information shall cause immediate and irreparable harm to Disclosing Party for
which it would not have an adequate remedy at law.  Accordingly, Disclosing Party shall have the
right to seek and obtain preliminary and final injunctive relief to enforce
this Agreement in case of any actual or threatened breach, in addition to other
rights and remedies that may be available to Disclosing Party.

13.  RELATIONSHIP
OF THE PARTIES

The parties shall be
treated for all purposes as independent contractors, and no provision of this
Agreement shall be construed to constitute or create a partnership, joint
venture, agency or formal business organization of any kind.

14.  PUBLICITY

                (a) At no time shall either
party release a press release that mentions the other party unless the other
party has consented in writing in advance to such press release; provided,
however, that upon the execution hereof the parties will jointly release the
press release contained in Exhibit C; and provided further that either
party may state that Galileo has Licensed Software from ITA.

(b)  For so long as the Licensed
Software is used by Online Users, Galileo will require, as a condition of
providing a web site with use of the Licensed Software, that each query input
screen on any such web site using the Licensed Software, as well as each screen
displaying search results, will contain ITA’s logo with the words “powered by
ITA Software”, or such other language as Galileo, subject to ITA’s consent, may
determine.  Such logo and language will
appear in a location on each such web site and in the size mutually
agreed.  The placement and size of such
attribution for the TRIP and CheapTickets web sites will be as shown in the
screen shots attached hereto as Exhibit D.  Galileo’s marketing and publicity materials
as well as User Documentation such as manuals, when discussing the Licensed
Software, will mention ITA as the creator thereof.

15.  DISPUTE RESOLUTION

The parties shall first attempt in good faith to resolve any dispute
arising out of or relating to this Agreement by negotiation, then arbitration,
in accordance with the dispute resolution procedures as set forth in Exhibit E.

16.  MISCELLANEOUS

 

23

(a)   Severability.  If any provision of this Agreement is
declared by a court of competent jurisdiction to be invalid or unenforceable,
such determination shall not affect the validity or enforceability of any other
provision hereof.

(b)   Entire Agreement.  This Agreement together with the SLA, the
source code escrow documentation, and any SOW represents the entire agreement
of the parties with respect to the subject matter hereof and cancels and
supersedes any previous understanding, commitments, or agreement, oral or
written, between Galileo and ITA, other than confidential disclosure
agreements.

(c)   Waiver.  No failure by either party to insist upon the
strict performance of any covenant, term or condition of this Agreement, or to
exercise any right or remedy, shall constitute a waiver of such right or remedy
on any subsequent occasion.

(d)   Governing Law.  The validity, construction, scope and
performance of this Agreement shall be governed by the laws of the State of New
York, exclusive of its choice of law provisions.

(e)    Amendment.  This Agreement may not be amended except in
writing executed by duly authorized representatives of both ITA and Galileo.

(f)   Notices.  Any notices
hereunder shall be given by certified mail (return receipt requested) or
overnight mail to the parties at their addresses set forth above, or to such
other address as either party may have notified the other.  Notices given by certified mail shall be
deemed given three business days after the day mailed; notices given by
overnight mail shall be deemed given one business day after the day mailed.

(g)  Assignment.  This
Agreement may not be assigned by either party without the prior written consent
of the other party, except that, subject to the other party’s right of
termination set forth in Section 7(e), a party may assign this Agreement in
connection with a merger or consolidation, or a sale of substantially all of
its business or assets.  Subject to the
foregoing, this Agreement shall be binding on the parties and their respective
successors and permitted assigns, and such permitted assigns shall expressly
agree to be bound by all the terms and conditions herein and in the SLA.  No partial assignment of the rights or
obligations granted hereunder and under the SLA shall be permitted.

(f)    Counterparts.  This Agreement may be signed in one or more
counterpart copies, all of which together shall constitute one Agreement and
each of which shall constitute an original.

 

(g)
  Further Assurances.  Each party agrees to take such further action
and execute, deliver and/or file such documents or instruments as are necessary
to carry out the terms and purposes of this Agreement.

 

(h)  Cumulative Remedies.  Except as expressly provided otherwise in
this Agreement, in addition to any remedies provided in this Agreement, the
Parties shall have all remedies provided at law or in equity.  The rights and remedies provided in this
Agreement or

 

 

24

 

otherwise
under law or in equity shall be cumulative and the exercise of any particular
right or remedy shall not preclude the exercise of any other rights or remedies
in addition to, or as an alternative of, such right or remedy, except as
expressly provided otherwise in this Agreement.

(i)            Compliance with Laws. 
Each party shall comply in all material respects with all foreign and
domestic laws, statutes, ordinances, rules, regulations, and orders applicable
and material to the performance of its obligations under this Agreement.  Each party shall promptly notify the other
party in writing if a charge of noncompliance with any foreign, federal, state
or local law (including statutes, rules, or regulations) that is related to, or
might affect its performance under, the Agreement is filed against such party.

 

IN WITNESS WHEREOF, the
parties have hereunto set their hands and seals as of the date first above
written.

	
   

  	
  GALILEO INTERNATIONAL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  KENNETH ESTEROW

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Kenneth
  Esterow

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ITA SOFTWARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeremy Wertheimer

  
	
   

  	
   

  	
  Jeremy
  Wertheimer, President

  

 

25Exhibit 10.28

 

MAINTENANCE, DATA AND OPERATIONS SERVICE LEVEL AGREEMENT

 

MAINTENANCE, DATA AND OPERATIONS
SERVICE LEVEL AGREEMENT (“Agreement”)
entered into as of the 3rd day of October, 2002 by and between ITA
Software, Inc. (“ITA”) and Galileo International, L.L.C.
(“Galileo”).

 

1.                   Introduction

 

This Maintenance, Data and Operations
Service Level Agreement covers standards for the provision of maintenance, data
and data management and support, and operations by ITA to Galileo, in
connection with that certain Software License Agreement dated as of October 3,
2002 between Galileo and ITA (the “License Agreement”).  Capitalized
terms used but not defined herein will have the meaning ascribed thereto in the
License Agreement.

 

In accordance with the License Agreement, ITA has
granted to Galileo a license to use the Licensed Software to search, select,
generate, sort and price air fares and determine seat availability, in order to
provide travel planning and related services.  ITA maintains its data center in the Exodus
Communications facility in Waltham, Massachusetts and the WorldCom facility in Billerica, Massachusetts, and may
establish alternate or additional data centers. 
ITA will operate the Licensed Software at
its locations in Waltham and Billerica, Massachusetts (collectively, the “Data Center”, which shall include any other location to
which ITA may, upon at least 90 days’ prior written notice to and consultation
with Galileo, move its data center in the future).  To support Galileo, ITA will: (i)
provide maintenance and support for the Licensed Software, pursuant to Section
2 of this Agreement (“Maintenance Services”),
(ii) provide data and data support relating to the Licensed Software, pursuant
to Section 3 of this Agreement (“Data Services”)
and (iii) operate the Licensed Software, pursuant to Section 4 of this
Agreement (“Operations Services”).

 

2.                   Maintenance
Services

 

2.1          Scope
of Services

 

(a) The following are the Maintenance
Services that will be provided by ITA in connection with the Licensed Software:

 

ITA shall:

 

(i)
          develop
and provide corrections, changes, or workarounds (“Corrections”)
for any defects, errors, or malfunctions in the Licensed Software, discovered
by, or made known to, Galileo or ITA; provided that “Corrections” shall not include
development comprised within the definition of Customization contained in
paragraph (c) below;

 

(ii)
       provide
Galileo with all improvements, modifications and enhancements (other than
Customization, third party customizations, and improvements, modifications or

 

 

PORTIONS OF THIS EXHIBIT MARKED BY AN
(***) HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

 

 

1

 

enhancements
which are developed by ITA for the exclusive use by its other customers and
which ITA does not have the right to license)  to
the Licensed Software which ITA shall make or acquire from time to time and
which ITA makes available to its licensees generally; provided, however, that
Galileo and ITA acknowledge that ITA does not presently develop software
comprising functionality or features for the exclusive use of individual
customers; and

 

(iii)
    provide
Galileo with any upgrade releases (“Upgrade Releases”)
to the Licensed Software, which ITA makes available to its licensees generally;
provided, however, that if any Upgrade Release contains significant new or
improved functionalities (including functionalities that may constitute changes
in industry-standard practices and/or data formats but the absence of which
does not prevent the Licensed Software from functioning as specified in the
License Agreement), ITA shall have the right to make such Upgrade Release
available to Galileo only upon the payment of additional license fees, or upon
such other terms, as ITA requires of its licensees generally therefor; provided
that in the event the effective price is lower, or the other terms are more
favorable, than those pursuant to which ITA offers such Upgrade Release to any
other licensee (provided that such price and terms shall be considered as a
whole), ITA shall reduce the price to be charged to Galileo and/or revise the
terms such that, considered as a whole, they are at least as favorable as that
granted to such other ITA licensee.

 

(b) In the event that changes in industry-standard
practices and/or data formats (such as ATPCO file formats, ATPCO processing,
SSIM schedule formats and government or IATA mandates regarding taxes and
passenger facility charges (PFCs)) prevent the Licensed Software from
functioning as specified in the License Agreement, ITA shall, without charge to
Galileo, deliver updates to the Licensed Software to permit operation of the
Licensed Software in a manner equal to the functionality described in the
License Agreement.  Such updates will be
considered “Improvements” for the purposes of this Section 2, and ITA shall
effect such Improvements to the Licensed Software within a reasonable time
prior to the effective date of such industry change so that such Improvements
may be implemented no later than the effective date of such change.

 

(c) When an Upgrade Release is available, ITA will
make available to Galileo a server (and any other necessary equipment) with
such Upgrade Release for testing by Galileo, and will notify Galileo
thereof.  Galileo will inform ITA, within
60 days of such notice from ITA, of its completion of any testing of such
Upgrade Release and direct ITA as to whether or not to implement such Upgrade
Release in the production version of the Licensed Software operated by ITA on
behalf of Galileo.  Galileo’s failure so
to direct ITA within 90 days after receipt of notice from ITA regarding the
availability of such Upgrade Release shall eliminate ITA’s obligation to
provide Maintenance Services until such Upgrade Release is implemented, unless
(i) Galileo has identified material defects, errors, or malfunctions in the
Licensed Software caused by such Upgrade Release; or (ii) the version of the
Licensed Software operated on behalf of Galileo is not more than one release
older than the then-current version.  If,
as contemplated by Section 2.1(a)(iii) above, ITA has made an Upgrade Release
available to Galileo which includes significant new or improved functionalities
subject to an additional charge which (when

 

2

 

considered in the aggregate with any other charges
previously applied to other new or improved functionalities) exceeds (***) per
year, and if Galileo elects not to accept such new or improved functionalities,
then ITA will continue to make available to Galileo for the remainder of the
initial term, pursuant to the process described in the first two sentences of
this paragraph (c), Upgrade Releases that do not include such new or improved
functionalities, as well as Maintenance Services with respect to such Upgrade
Releases.

 

(d)
Subject to the provisions of, and upon the conditions set forth in, Section
3(a) of the License Agreement, in the event Galileo wishes ITA to perform
Customization (as defined below) of the Licensed Software, ITA will present
Galileo with a proposed Statement of Work (SOW) containing a description of the
services that ITA estimates will be required to perform such Enhancements or
Customization, and the cost thereof. 
Such cost will be computed based on a rate for software developers of
(***) per hour (or such lower rate as may be charged pursuant to the provisions
of Section 6(c) of the License Agreement), as well as out-of-pocket expenses
incurred.  “Customization”
means the addition of features, or other changes, to the Licensed Software,
that are requested by Galileo to conform the Licensed Software to its specific
needs, policies, practices and/or operating environment.

 

(e) ITA will provide Galileo, at no additional
cost, with any revisions to the existing Documentation developed or necessary
to reflect all Corrections, Improvements, Customization or Upgrade Releases for
the Licensed Software.

 

(f) All computer programs delivered
pursuant to the Maintenance Services shall, unless otherwise agreed, be
considered “Licensed Software” and subject to all the terms and conditions of
the License Agreement.

 

(g) ITA currently provides between three
and four Upgrade Releases per year.  ITA
will not materially change its release schedule without prior notification to
and consultation with Galileo.  ITA will
at all times provide Maintenance Services for at least the current and one (1)
previous Upgrade Release of the Licensed Software; provided, however, that in
the case of Improvements delivered pursuant to paragraph (b), ITA will not be
obligated to provide Maintenance Services with respect to any prior Upgrade
Release which does not incorporate the industry changes comprised in such
Improvements.

 

(h) ITA
shall provide Maintenance Services directly to Galileo but not to Online
Users or Offline Travel Agents.

 

(i) 
ITA shall provide Maintenance Services to Galileo in a manner that is at
least pari passu with the Maintenance Services ITA provides to its other
licensees.

 

2.2          Maintenance

 

ITA shall maintain a technical support
entry point in Massachusetts, identified by a dedicated phone number and e-mail
address, which will be staffed by knowledgeable ITA employees capable of
providing technical assistance regarding the Licensed Software, its
functionality, databases, operations, utilities and supporting documentation.
Such telephone or e-mail

 

3

 

assistance will be available to Galileo
on a daily basis during regular working hours (9:00 a.m. to 6:00 p.m. Eastern
time Monday through Friday) for non-emergency problems (as defined in Section
5.1) and on a “24/7” (365 days per year) basis for emergency problems.  This technical support entry point will also
coordinate problem resolution and keep Galileo apprised of efforts to remedy
any problem situation until complete restoration of the service.  First line of support will be Galileo’s Help
Desk, which will contact and escalate problems to ITA when necessary.

 

3.                   Data
Services

 

3.1          Scope
of Services

 

(a) ITA manages data feeds for schedule and faring
data and provides such data to the Licensed Software.  ITA currently receives fare data from Airline
Tariff Publishing Company (“ATPCO”),
schedule data from OAG Worldwide, Inc. (“OAG”) and
certain industry data from the International Air Transport Association (“IATA”).  ITA also
receives availability data through the Worldspan GDS (“Worldspan”)
and maintains an availability cache for the purpose of providing availability
data to its licensees.  Subject to the
conditions set forth in Section 3.2(c), ITA may receive availability data from
other sources, and may substitute such availability data for availability data
from Worldspan.  In addition, ITA may
receive seat availability information from Galileo and may process such
availability data for use with the Licensed Software.  The parties will consult with each other as
to the feasibility of substituting, when appropriate, Galileo availability data
for Worldspan or other availability in the cache that ITA provides to Galileo
hereunder.

 

(b) The operation of the Data Center (including all
software running in such facilities) is the sole responsibility of ITA.

 

(c) As part of the data management services provided
hereunder, ITA will (i) receive and manage availability data from Worldspan,
Galileo or other sources, as applicable, (ii) receive and manage downloads of
fare, schedule and industry data from ATPCO, OAG and IATA, respectively (or in
each case from such other commercially reasonable industry accepted sources as
ITA may reasonably determine), (iii) when and if available, receive and process
fare data from SITA with respect to its carriers (provided that the ability to
process SITA fare data may be considered a significant new or improved
functionality, governed by the provisions of 
Section 2.1(a)(iii) above), (iv) process such data described in clauses
(i), (ii) and (iii) such that it is in a form suitable for use with the
Licensed Software, and (v) provide such availability, fare, schedule and
industry data to the Licensed Software. 
ITA shall provide utilities to receive and manage downloads of fare,
schedule, and industry data from Galileo. 
All fare, schedule, industry and availability data received from third
parties is collectively referred to as “Licensed Data”;
and ATPCO, OAG, IATA, Worldspan, SITA and any other parties from which Licensed
Data is obtained, are referred to as “Data Providers”.  ATPCO fare data is presently received three
times per day; OAG schedule data is presently received two to three times per
week; IATA data is received regularly; and availability data will be received
on a continuous basis.

 

(d)  If so
requested by Galileo, ITA will produce a Statement of Work, pursuant to Section
3(a) of the License Agreement, for the receipt and management of schedule, fare
and/or industry data

 

4

 

directly from Galileo. 
Such SOW will include determination of the feasibility of receiving such
data from Galileo and will also set forth any resulting modifications to the
cost and other provisions of this Agreement related to such data.  In the event Galileo proceeds with such SOW,
then ITA will receive schedule, fare and/or industry data directly from Galileo
rather than from OAG, ATPCO and/or IATA, as the case may be.

 

(e) It is a condition of ITA’s providing Licensed Data
and data services to Galileo hereunder that Licensed Data be used solely in
connection with the operation of the Licensed Software.  Therefore, Galileo agrees that it will not
transfer or distribute the Licensed Data and that it will use the Licensed Data
only in connection with its operation of the Licensed Software, and for no
other purpose.

 

(f) The parties will develop a protocol to insure that
ITA’s loading of fare and schedule data onto the servers that provide data for
Galileo’s use of the Licensed Software occurs as directed by Galileo and
substantially simultaneously with Galileo’s loading of the same data onto its
own system; provided that all data shall be presented at once and ITA will not
be obligated to conform to a “rolling update” protocol.

 

3.2          Data
Providers

 

(a) 
ITA presently has in place and will use reasonable commercial efforts to
maintain legal agreements, sufficient to cover ITA’s legal obligations to
perform hereunder, with Data Providers for the provision of schedule, fare,
industry and (subject to paragraph (b) below) availability data for the
operation of the Licensed Software. 
However, Galileo acknowledges and agrees that such Data Providers are
third parties which are not in ITA’s control and which are subject to delay or
failure.  While ITA agrees, as part of
its obligations under this Agreement, to receive, load and manage such data,
ITA does not warrant the accuracy of such data (except that the foregoing will
not be deemed to relieve ITA from responsibility for problems with data which
are caused by ITA and not by a Data Provider). 
In addition, ITA disclaims any and all liability resulting from or
related to Data Providers’ failure to provide data to ITA in a timely fashion.

 

(b) 
Notwithstanding any other provision of this Agreement, ITA disclaims any
warranty as to the continued supply of availability data from Worldspan.  In the event Worldspan ceases to provide ITA
with availability data, ITA may take any actions which ITA in its sole
discretion deems appropriate with respect to the provision of such data. . No
such cessation by Worldspan will constitute a breach by ITA of this Agreement,
nor will Galileo have any right to recover any damages, or take any other
action against ITA (except as specifically provided in Section 7.3(c)(iv) of
the License Agreement) as a result thereof; provided, that the foregoing will
not be deemed to limit Galileo’s ability to exercise any other rights or
remedies, up to and including termination, as a result of any breach by ITA of
any other provision of this Agreement or the License Agreement.  ITA agrees that it will exercise its best
efforts (subject to ITA’s confidentiality obligations to third parties) to give
Galileo the greatest possible notice of a contemplated or threatened or actual
loss of Worldspan availability information.

 

5

 

(c) 
In the event ITA elects to receive availability data from a source other
than or in addition to Worldspan or Galileo, the availability information
generated by the Licensed Software shall not differ materially, in scope or
quality, from that generated using the data currently obtained from Worldspan.  ITA shall notify Galileo not less than 30
days (or such lesser period as is commercially practicable under the
circumstances, in ITA’s reasonable judgment) prior to switching or adding an
availability data provider.  ITA shall
provide reasonable cooperation and assistance to Galileo to enable it to
evaluate the quality of the alternate availability data.  In the event Galileo reasonably determines
that the alternate availability data is materially different, in scope or
quality, than the availability data obtained from Worldspan, Galileo shall so
notify ITA and the parties shall endeavor in good faith to resolve the
deficiencies.  In the event such
deficiencies are not resolved within thirty (30) days after delivery of such
notice, Galileo shall have the right to terminate this Agreement, provided that
no termination shall be effective until the dispute resolution procedures set
forth in Section 15 of the License Agreement have been completed.

4.                   Operations
Services

 

4.1          Data
Center

 

(a) ITA will operate and maintain the Data Center and
provide “Operations Services”, which will
include, without limitation, the acquisition, installation, maintenance,
upgrading, monitoring and all aspects of the operation of all computer hardware
and equipment, and all services related thereto necessary in connection with
the operation of the Licensed Software and the provision by ITA of the Data
Services provided hereunder.

 

(b) Initially, ITA will operate the Hardware (as
defined in Section 4.2) and provide Operations Services from its Billerica
facility.  Galileo may hereafter request
that ITA provide Operations Services from an additional location(s).  In such event, ITA will prepare a proposal to
Galileo for the establishment of such additional location(s), which will
include the anticipated schedule and cost thereof.

 

(c) Appendix A sets forth ITA’s procedures currently
in place for the protection of the confidentiality of private fare information
relating to Galileo or its users which may be transmitted to ITA.  From time to time, as requested by either
party, ITA and Galileo may consult with respect to the modification of such
procedures.  ITA agrees that it will use
commercially reasonable efforts to follow such procedures as may be in place
from time to time.

 

(d)  The parties
acknowledge that they do not intend that ITA have access to any personally
identifiable user information, such as phone numbers and addresses, credit card
information, and/or employee account information of Galileo’s users (“Galileo
User Information”).  In the event that
ITA specifically agrees, in connection with the performance of an SOW or
otherwise, that ITA will have access to Galileo User Information (provided that
ITA may in its sole discretion reject any SOW that would require it to receive
Galileo User Information), such information will be considered “Confidential
Information” for the purposes of Section 12 of the License Agreement, and ITA
agrees to hold such information in confidence, and protect such information, in
accordance with the provisions of such Section 12 of the License Agreement and
applicable law.  In addition, prior to
and as a condition of receiving any such Galileo User

 

6

 

Information, ITA shall comply with Galileo’s
reasonable policies, standards, and guidelines for privacy, information
protection, and information and system security applicable thereto (which
policies, standards, and guidelines will be made available upon ITA’s
reasonable request).

 

4.2          Hardware

 

Simultaneously with the execution of
this Agreement, Galileo will inform ITA of the initial number of fare
searching/pricing servers it wishes ITA to operate exclusively on its
behalf.  During the term of this
Agreement, ITA will advise Galileo as to changes in the Licensed Software or
available hardware which would affect Galileo’s server requirements.  From time to time, Galileo may determine
(with such assistance from ITA as Galileo may reasonably request) to acquire
additional servers, and ITA will acquire such number of additional servers as
Galileo may direct.    In connection
therewith, ITA shall consult with Galileo and will advise Galileo as to changes
in settings or parameters that may result in ITA’s requiring a smaller number
of servers to perform the Operations Services. 
ITA will determine, in its reasonable discretion in consultation with
Galileo, the servers, and other hardware and equipment (including ancillary
equipment such as availability servers and query distributors, etc.) (the “Hardware”) appropriate for Galileo’s use of the Licensed
Software at the Data Center and the provision by ITA of the Data Services
provided hereunder.  ITA will replace Hardware when and as
warranted in its reasonable judgment (e.g.,
to take advantage of developments in technology, computing speed, memory,
etc.)  ITA shall, to the extent
reasonably possible, notify Galileo in advance of any software, data,
technology changes, or the like that would impact Galileo’s Hardware
requirements for operation of the Licensed Software.

 

4.3          Operation
of Software

 

ITA will be responsible for all aspects of the
operation of the Licensed Software on behalf of Galileo, including the
installation of Upgrade Releases provided under the License Agreement.  ITA will also monitor the Licensed Software
at the Data Center.  ITA will not be
responsible for Galileo’s operation of Galileo’s web site or for the operation
of any software or hardware which is not located at the Data Center.

 

4.4          Communications

 

(a) 
ITA will receive queries from Galileo and transmit responses from the
Licensed Software, from the Data Center via communications channels which may
include either a virtual private network or dedicated point-to-point circuits.

 

(b)  All
hardware, software and services associated with communications between the Data
Center and any facility from which Galileo may initiate queries to the Licensed
Software (“Galileo Facility”), including maintenance thereof, will be provided
by Galileo at its own expense.

 

(c)  Galileo
expressly acknowledges that the flow of data to or from the Data Center will
depend in large part on the performance of hardware, software and services
provided or controlled by third party communications providers.  ITA disclaims any and all liability resulting
from or

 

7

 

related to Galileo’s inability to communicate with the
Data Center, to the extent such inability is the result of the failure of
hardware, software or services provided by such third party communication
providers.

 

4.5          Disaster
Recovery

 

ITA will comply with the provisions of the Disaster
Recovery Plan (DRP) attached hereto as Appendix B, and shall provide
Galileo with notice of any material change to such DRP.

 

4.6          Testing

 

ITA will perform, on a regular basis consistent with
the frequency employed for ITA’s other licensees, but no less often than
hourly, tests that measure the performance of the Licensed Software and the
production system on which it operates (including response time, resource
allocation vs. query volume), and provide
the results of such tests to Galileo consistent with the frequency employed for
ITA’s other licensees, but no less often than daily.  ITA and Galileo will consult on particular
additional tests that Galileo may wish ITA to perform.

 

5.                   Performance
Service Levels

 

5.1          Problem
Classification

 

Problems
will be classified in accordance with the following definitions:

 

(a) 
Emergency Problems.  The following will be considered “emergency problems”: (i) the Licensed Software is “unavailable”
(as defined in Section 5.3(b)); (ii) the Licensed Software is not being
supplied with any fare data, or new fare data is not loaded within (***) hours
after ITA’s receipt thereof; (iii) the Licensed Software is not being supplied
with any schedule data, or new schedule data is not loaded within (***) hours
after ITA’s receipt thereof; (iv) except under the circumstances described in
Section 3.2(b), the Licensed Software is not being supplied with any
availability data, or the availability feed to the Data Center is interrupted for
a period exceeding (***) hours; (v) ITA fails to synchronize data loading with
Galileo, as contemplated by Section 3.1(e); (vi) Galileo requests that ITA
rollback either (A) the Licensed Software, to the prior version thereof, or (B)
a complete data load to the system running the Licensed Software, to the prior
version of the data; (vii) there is a significant reduction ((***) or greater)
in the percentage of fares priced consistently by the Licensed Software and by
Galileo’s faring system, measured during any 60 minute period, from a
consistency baseline established for each License Month, based on the average
daily percentage of fares priced consistently by the two systems during the
preceding License Month, excluding the lowest five days of each month, provided
that such reduction shall not be considered an emergency problem if it was
caused by a change made by Galileo to its faring system; (viii) the Licensed
Software’s response times have degraded, as measured pursuant to the following
paragraph; or (ix) the Licensed Software is “offline” (i.e., does not respond
to queries) for a period of two minutes or longer.

 

8

 

For the purposes of
determining whether the Licensed Software’s response times have degraded,
Galileo and ITA shall agree upon a reference data set that shall include
multiple itineraries between certain city pairs in important markets designated
by Galileo and upon a defined set of fares data, both of which shall be used to
determine appropriate response times for shopping queries, assuming certain
search parameters (such as depth of search). 
Galileo shall monitor the processor response times periodically.  If at any time following deployment of the
Licensed Software in a production environment, Galileo reasonably determines
that the query response time has degraded from the response times experienced
immediately prior to such time (such response times to be determined by
averaging response times calculated at regular intervals over a 24-hour period
preceding the time such degradation is alleged to have occurred), then the
parties shall test the ITA software using the reference data set.  If the test results demonstrate that the
response times have degraded by more than (***), and the correction thereof
does not require the modification of the Licensed Software by ITA, then such
degradation will be considered an emergency problem for the purposes of Section
5.1(a)(vii).

 

(b)  Non-Emergency
Problems.  All problems that
are not emergency problems, as defined in paragraph (a), will be considered “non-emergency problems”. 
Without limiting the foregoing, the following will be considered “non-emergency
problems”: (i) pricing errors in the Licensed Software that do not cause a
significant reduction in pricing consistency, as described in subsection
(a)(vii) above; and (ii) working with Data Providers (or Galileo, to the extent
it is a supplier of data) to correct erroneous data (including instances where
the software process the data correctly, but the data is not what a carrier
intended to file).

 

Notwithstanding the foregoing
definitions, the following will not be considered “problems” for the purposes
hereof: (i) failure of a Data Provider (as defined in Section 3.1(d)) or of
Galileo to provide fares or schedule data in a timely fashion; (ii) failure of
telecommunications hardware or equipment which is not within ITA’s control;
(iii) requests for Customization  (as
defined in Section 2.1(c)) or (iv) problems caused by or arising from events of
Force Majeure (as defined in Section 7.4).

 

5.2                               Response
Times and Resolution Targets

 

ITA
shall respond to and use its reasonable commercial efforts to resolve problems
in accordance with the following guidelines, based upon the definitions set
forth in Section 5.1:

 

(a)  Emergency problems:  Emergency problems may be reported at any
time (24 hours/7 days a week).  All
relevant resources shall be applied 24/7 until the problem is resolved.  The target resolution time for emergency
problems will be (***) minutes after response.

 

(b) 
Non-emergency problems:  Non-emergency problems may be reported by
e-mail at any time.  ITA will apply
appropriate resources (as determined by ITA in its reasonable discretion)
during regular working hours until the problem is resolved.  The target resolution time for non-emergency
problems will be the next scheduled upgrade in the case of software problems;
provided that (i) Galileo and ITA may work together to create a procedure
whereby ITA may provide a software “patch” prior to the next scheduled upgrade,
as a result of either a feature request or a software defect; and (ii) problems
which ITA (in its reasonable discretion, after

 

9

 

consultation with Galileo) determines
are insignificant may not be addressed by ITA. 
In the case of non-emergency problems which are either operations
problems or data problems, ITA will apply relevant resources and make
commercially reasonable efforts to resolve such problems as soon as
practicable, and will inform Galileo of its target resolution time.

 

5.3          Operations — Uptime

 

(a)           Uptime.  ITA shall maintain
a minimum uptime of (***) (measured on a monthly basis) for the Licensed
Software.  Failure to meet this uptime
shall result in a credit to Galileo (representing a pro rata portion of the
monthly Operations Center Fee provided in Section 6 below payable by Galileo
for the month in which the failure occurred) to be applied against future
monthly Operations Fees as provided below:

 

	
  Uptime

  	
   

  	
  Contractual Credit (as a

  percentage of monthly

  Operations Center

  Fee to be abated)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  

 

(b)  As used in paragraph (a) above, “uptime” means the number of minutes that the Licensed
Software is not “unavailable”.  The
Licensed Software will be considered “unavailable”
for any minute in which it fails to return “correct answers” to at least (***) of the test queries posed to the
Licensed Software during such period.  ITA
will cause test queries to be posed to the Licensed Software not less
frequently than (***), and will
monitor the responses.  “Correct answers” will be defined as those answers that match
the query that was originally requested. 
For the purposes hereof, an answer will be deemed to match a query if it
comprises the same origin, destination and dates as those in the query;
provided, that if the Licensed Software fails to return an answer because no
itinerary with the requested origin, destination and/or dates was possible,
such answer will not be considered incorrect. 
Answers that match the query originally requested, as described in the
preceding sentence, but contain incorrect prices, will not constitute “unavailability”
for the purposes of this paragraph.

 

(c)  If the Licensed Software is unavailable, ITA
will provide credits pursuant to paragraph (a) unless such failure is due to
any of the following: (i) an event of Force Majeure (as defined in Section
7.4); (ii) acts or omissions of Galileo, or any use or user of the Licensed
Software authorized by Galileo; or (iii) Galileo’s applications, equipment, or
facilities.

 

10

 

(d) 
Galileo’s receipt of the credits set forth in paragraph (a) above shall
be Galileo’s sole and exclusive remedy for failure to maintain uptime.

 

5.4          Standard
Operating Procedures

 

The procedures for reporting,
diagnosing, tracking and responding to problems are set forth in ITA’s standard
operating procedures for Galileo (“SOP”), which is
attached to this Agreement as Appendix C, as it may be amended by the
parties from time to time; provided, that ITA will give Galileo reasonable
prior notice of any anticipated major changes to the SOP.

 

6.                   Fees
and Expenses

 

6.1          Maintenance
Services

 

There is no charge for the Maintenance Services
described in Sections 2.1(a) and 2.1(b), if the operation of the Licensed
Software is hosted by ITA and ITA is charging Galileo for at least 100 servers
pursuant to Section 6.3.1.  If ITA is
charging Galileo for fewer than 100 servers, then the charge for Maintenance
Services will be (***) per
month.  If ITA is not hosting the
operation of the Licensed Software, then the charge for Maintenance Services
will be as set forth in Appendix D, attached hereto.

 

6.2.1       Data
Services

 

There is no charge for the Data Services described in
Section 3.1(d), if the operation of the Licensed Software is hosted by ITA and
ITA is charging Galileo for at least 100 servers pursuant to Section
6.3.1.  If ITA is charging Galileo for
fewer than 100 servers, then the charge for Data Services will be (***) per month.  If ITA is not hosting the operation of the
Licensed Software, then the charge for Data Services will be as set forth in Appendix
D. The Data Services to be provided without charge (or subject to a charge
of (***), as the case may be)
include the cost of processing private fares only if such fares are filed with
ATPCO.  Any Data Services relating to
private fares which are not filed with ATPCO will be subject to a Statement of
Work (SOW) between the parties, as described in Section 2.1(c) above.

6.2.2       Increase
in Fares/Schedules Data Costs

 

In the event there is a material increase in the cost
to ITA of the fares and/or schedules data feeds which are provided hereunder
from those presently in effect, ITA reserves the right to increase the fee for
Data Services, in direct relation to such increase in data cost and the ITA
customers who use such data, upon 90 days’ prior written notice to
Galileo.  Notwithstanding the foregoing,
in the event of ITA’s notifying Galileo of such a material increase, Galileo
may use reasonable commercial efforts to obtain the right to provide the
affected data to ITA directly (for use on behalf of Galileo but not ITA’s other
customers, unless Galileo so agrees), in which event Galileo will not be
obligated to pay any amounts pursuant to this Section 6.2.2.

 

11

 

6.2.3       ATPCO
Royalty

 

ITA’s agreement with ATPCO provides that ITA need not
pay royalties to ATPCO with respect to “products [licensed by ITA] which use
Data supplied to a customer of [ITA] pursuant to an agreement between such
customer of [ITA] and ATPCO.”  In the
event ATPCO were to determine that Galileo were subject to a royalty payment by
virtue of the preceding provision, Galileo will reimburse ITA for the actual
amount of any such royalty payable to ATPCO; provided that, in the event of ITA’s
notifying Galileo of such a royalty obligation Galileo may use reasonable
commercial efforts to obtain the right to provide such data to ITA directly
without additional cost to Galileo.

 

6.2.4       OAG
Royalty

 

ITA’s agreement with OAG provides that ITA may provide
OAG data to an ITA licensee without additional charges “if (i) the customer to
which ITA Software is providing the [OAG] Data is also a subscriber to the OAG
data or (ii) such customer’s use of the [ITA] Software utilizing the [OAG] Data
is hosted by ITA Software.”  In the event
OAG were to determine that Galileo were subject to a royalty payment by virtue
of the preceding provision, Galileo will reimburse ITA for the actual amount of
any such royalty payable to OAG; provided that, in the event of ITA’s notifying
Galileo of such a royalty obligation Galileo may use reasonable commercial
efforts to obtain the right to provide such data to ITA directly without
additional cost to Galileo.

 

6.2.4       Additional
Charge for Worldspan Availability Data

 

(a)          Galileo will pay an additional
charge of (***) for each “Non-Subscriber
PNR”, if any, where “Non-Subscriber PNR”
has the meaning set forth in Appendix E. 
Such (***) charge may be
reduced in the event ITA is able to recover its fixed costs of obtaining
Worldspan availability data from the ITA licensees to which such data is
provided.  Notwithstanding any provision
herein to the contrary, the amount ITA charges Galileo for availability data
obtained from any source shall not exceed the lowest amount ITA charges any
other licensee for such data.

 

(b)         If the charge described in
paragraph (a) is applicable, Galileo will certify to ITA, within 25 days after
the end of each calendar quarter, the number of Non-Subscriber PNRs created
during such quarter.  Notwithstanding the
provisions of Section 6.5, Galileo will pay such charge along with its delivery
of such certification.  In its
certification to Worldspan, ITA will aggregate PNRs among its customers so as
not to disclose the number of PNRs attributable to Galileo.

 

(c)          It is the parties’ intention
that the charge described in paragraph (a) apply only to PNRs that are created
by Galileo customers to which the Licensed Software is made available.  In the event Worldspan asserts that ITA has
not correctly calculated the number of Non-Subscriber PNRs with respect to
Galileo, then Galileo will immediately pay ITA a charge of (***) for each additional Non-Subscriber
PNR so asserted by Worldspan for which Galileo has not theretofore paid the
charge; provided, that in such event ITA will, upon Galileo’s request and

 

12

 

at Galileo’s
expense (including but not limited to legal fees), use its best efforts to
assist Galileo in contesting such assertion by Worldspan. Galileo shall have sole authority to prosecute,
defend, and/or settle such dispute, provided that no such settlement shall be
entered into without ITA’s consent if such settlement has the effect of either
(i) requiring ITA to admit any breach of contract or other wrongdoing, in
contract, in tort or at equity; (ii) obligating ITA or any other ITA customer,
or having a reasonable probability of obligating ITA or any other ITA customer,
to make any payments to Worldspan or to any third party that ITA or such
customer would not have been obligated to pay absent such settlement; (iii) in
any other way changing any material obligation of ITA to Worldspan or to any
third party; or (iv) relieving Worldspan or any third party of any material
obligation or liability to ITA.

 

(d)         Prior to January 2004, in the
event Galileo is using Worldspan availability data, ITA will inform Galileo of
the termination of the initial term of the Worldspan-ITA contract.  ITA and Galileo will consult together as to
what to the various options open to Galileo for obtaining availability data.  Beginning in January, 2004, ITA will cease to
provide Worldspan availability data to Galileo unless Galileo expressly agrees
to continue paying any costs which apply to the provision of such data under
the ITA-Worldspan agreement.

 

(e)          In the event that, at or
following the expiration of ITA’s agreement with Worldspan in January 2004, an
increase in the cost to Galileo of availability data causes the total amounts
paid by Galileo under this Agreement and the License Agreement to increase by
more than (***), then Galileo will
have a one-time right, by notice given within 30 days of its receipt from ITA
of notice of such increase in the cost of availability data, to terminate this
Agreement and the License Agreement, effective as of the effective date of such
increase. Increases in the cost of availability data attributable to PNR volume
increases shall not be taken into account in calculating the overall increase
in the amount paid by Galileo hereunder. 
ITA may request, prior to its price negotiation with Worldspan or with
another potential provider of availability information, that Galileo commit to
use of such availability information provided the cost thereof is limited to a
specified amount.  In such event, such a
commitment by Galileo will supersede the provisions of the first sentence of
this Section 6.2.4(e).

 

6.3          Operations
Services

 

6.3.1       Data
Center

 

(a) Monthly Hardware Cost.  ITA will charge Galileo a monthly charge,
which will be based upon the number of dual process servers (both production
and test servers) included in the Hardware from time to time that are used for
low fare searching.  Such charge will
relate to the cost of maintaining Galileo’s operations at the Data Center, and
will be inclusive of all recurring acquisition, replacement, upgrading,
operation and maintenance costs of the Hardware (including fare
searching/pricing, availability and test servers as well as all other Hardware
for which ITA will not bill Galileo separately), rack space, bandwidth,
co-location, facility services, performance monitoring, networking charges,
telecommunications and other costs associated with operation of the Data
Center.  The amount of this fee will be
(***) per month per dual

 

13

 

process server, payable in equal monthly
installments in advance beginning September 1, 2002 and prorated for partial
months.  The price will be subject to the
following discounts, based on the number of dual process servers in any one
data center which are provided by ITA hereunder:

 

	
  Number of dual process servers in data center

  	
   

  	
  Monthly Fee per dual process server

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  
	
  (***)

  	
   

  	
  (***)

  

 

 

The fee for Operations Services will be
graduated; in other words, servers 1 through 100 will be priced at (***)
regardless of any discounts that may apply to higher numbers of servers or to
servers at other data centers. 
Notwithstanding the foregoing discount schedule, in the event there is a
material increase in the cost to ITA of the Hardware, rack space, bandwidth,
co-location, facility services, performance monitoring, networking charges,
telecommunications or other costs associated with operation of the Data Center
from those presently in effect, ITA reserves the right to increase the per
server fee for Operations Services, in direct relation to such increase in ITA’s
cost, upon 90 days’ prior written notice to Galileo; provided that in no event
will such fee be greater than (***) per dual process server (subject to Section
6.4).

 

(b) Set-up Cost for Additional
Locations.  ITA has provided Galileo,
without charge, with all necessary services in connection with the set-up of
the Billerica location.  In the event
Galileo requests that ITA establish an additional location from which to
provide Operations Services, then Galileo will pay ITA a one-time charge with
respect to the services rendered by ITA in the establishment of such location
(which charge will be set forth in the proposal presented to Galileo pursuant
to Section 4.1(b)).  In addition, for the
purpose of computing a discount pursuant to Section 6.3.1(a), the number of
servers will be calculated separately for each data center (i.e., in the event Galileo had 100 servers in each of two
data centers, no discount would apply).

6.3.2       Communications
Costs

 

All hardware, software
and services associated with communications between the Data Center and Galileo
Facility, including maintenance thereof, will be for the account of
Galileo.  In the event ITA contracts for
such hardware, software and/or services, Galileo will reimburse ITA for the cost
thereof; provided, that no such expenses will be incurred on Galileo’s account
without prior notice to and consultation with Galileo.

6.3.3       Other
Costs

 

In the event that ITA’s personnel are
obligated to travel outside of the greater Boston area in connection with the
provision of Maintenance Services, Data Services or Operations Services
pursuant to this Agreement, Galileo will pay ITA, with respect to such travel,
all out-of-pocket expenses thereof; provided
that (1) ITA obtains Galileo’s prior written approval before incurring

 

14

 

such reimbursable
expenses; or (2) such expenses are incurred in accordance with Galileo’s
then-current policy regarding such reimbursable expenses (a copy of which
Galileo agrees to provide ITA).  ITA
agrees to provide Galileo with access to such original receipts, ledgers, and
other records as may be reasonably appropriate for Galileo or its accountants
to verify the amount and nature of any such expenses.

 

6.4          CPI Increase

 

At any time after September 30, 2003, the hourly rate
for software developers set forth in Section 2.1(c), the fee for maintenance
set forth in Section 6.1, the fee for data services set forth in Section 6.2.1,
and/or the per-server fee for operations services set forth in Section 6.3.1
may be increased, at ITA’s option upon notice to Galileo, by an amount equal to
the CPI Increase.  The “CPI Increase” means the change (as of the date the most
recently available) in the Bureau of Labor Statistics Consumer Price Index —
All Items (as reported in the Wall Street Journal) from a base of September,
2002 through September of the year for which such change applies.

 

6.5          Payment
Terms

 

All fees and expenses described in this Section 6 will
be invoiced by ITA, and each such invoice will be payable thirty (30) days
after receipt by Galileo.  Any overdue
invoices will accrue interest at the rate of 12% per annum from the date due
until the date actually paid.  In the
event of a good faith dispute as to any portion of an invoice, Galileo shall
give written notice to ITA, within fourteen (14) days after receiving such
invoice, stating the details of any such dispute and shall promptly pay any
undisputed amount in accordance with this Agreement.  Unless specifically provided in this
Agreement, there shall be no other fees payable by Galileo.  Prior to the effective date of this
Agreement, Galileo reimbursed ITA for the cost of acquiring certain servers to
be used by ITA in providing the Services. 
The aggregate amount of such reimbursements shall be treated as a credit
to Galileo’s account and shall be applied to payment of the fees and expenses
owed by Galileo hereunder until expended.

 

7.                   General
Provisions

 

7.1          Warranties

 

ITA shall perform the Maintenance
Services, Data Services, Operations Services and all other services specified
herein in a good, workmanlike and professional manner using qualified personnel
fully familiar with the Licensed Software.

 

7.2          Designated
Account Managers

 

Galileo and ITA shall each appoint an
account manager (“Account Managers”)
who shall be responsible for all administrative matters pertaining to this
Agreement. The Account Managers will serve as primary point of contact for the
other party for any matter regarding this Agreement.

 

15

 

Either party may replace the appointed Account Manager
upon delivery, prior to such change, to the other party of written notice of
such change.

 

7.3          Term

 

(a)  The term of
this Agreement will be contemporaneous with the term of the License Agreement,
except that either party may terminate this Agreement in the event the other
party materially breaches any of its obligations hereunder and fails to cure
such breach within thirty (30) days (sixty (60) days in the case of a payment
default, provided that Galileo will make commercially reasonable efforts to pay
invoices in a timely fashion) after receipt of notice of such breach by the
non-breaching party.

 

(b)  (i) Galileo
may terminate the Operations Services set forth in Section 4 without cause,
upon 120 days’ prior written notice to ITA. 
Galileo acknowledges that ITA will incur out-of-pocket costs (and
obligations for future costs) for hardware, facilities or equipment, as well as
the retention of personnel, as a result of its commitment to provide Operations
Services to Galileo hereunder. 
Therefore, upon termination of Operations Services pursuant to this
Section 7.3(b), Galileo will pay ITA an amount determined as follows (in
addition to the costs payable under Section 6.3 during the notice period): (A)
Galileo will pay ITA an amount representing the residual value (i.e., cost after depreciation) of the Hardware utilized by
ITA solely to provide the hosting services to Galileo, and upon such payment
ITA will convey such Hardware to Galileo (or its designee), (B) Galileo will
pay ITA an amount representing the anticipated cost to ITA of
telecommunications lines, colocation facilities, and other similar
out-of-pocket expenses to which ITA has committed as of the date of notice of
termination (provided that at the time of making any such commitments ITA will
inform Galileo of the termination provisions thereof, and will not enter into
any such commitments exceeding one year without Galileo’s prior consent), and
(C) Galileo will pay ITA a fixed amount representing the cost to ITA of
personnel retained in order to provide Operations Services to Galileo, which
will be determined by the parties at the time of development of the project
plan referred to in clause (ii) below.

 

(ii)  In the event of termination of Operations
Services pursuant to this Section 7.3(b), the parties will use work together in
good faith to develop, during the notice period, a project plan to ensure an
orderly transition of the hosting to Galileo (or its designated service
provider) with minimal disruption to Galileo’s use of the Licensed
Software.  Such project plan will
include, without limitation, the provision by ITA of reasonable transition
assistance to Galileo and the reimbursement by Galileo to ITA of any reasonable
direct out-of-pocket and (on an hourly basis) personnel expenses incurred in
providing such transition assistance.   In addition, as part of the transition plan, the
parties will negotiate an amendment of this Agreement that revises the
provisions of Sections 5 and 6 (as well as such other provisions as are
affected by such termination) so as to be consistent with the fact that
Galileo, and not ITA, is operating the Licensed Software.  If and when Galileo or its designated service
provider assumes responsibility for operating the Licensed Software, the
services to be provided by ITA shall be as set forth in Appendix D,
attached hereto.

 

16

 

(c) 
If Galileo notifies ITA of its termination of Operations Services pursuant to
Section 7.3(b), Galileo may also (but will not be obligated to) terminate Data
Services pursuant to Section 3, by notice  to ITA given
simultaneously with its notice of termination of Operations Services.

 

7.4          Force
Majeure

 

ITA will not be responsible or liable
for, and will be excused from, any non-performance or delay in the performance
of any of its obligations under this Agreement if and to the extent that such
non-performance or delay (i) is caused by an act of God, natural
disaster, civil disturbance, war, fire, earthquakes, changes in law, regulation
or government policy, or non-performance by any third party (including vendors
or suppliers), or any other factor beyond the control of ITA, whether or not
foreseeable (“Force Majeure”), and
(ii) could not have been prevented by ITA’s taking normal and customary
precautions.  In the event that ITA is
excused from the performance of its obligations pursuant to this Section 7.4,
then ITA will use its reasonable commercial efforts to resume performance of
its obligations as soon as feasible.  If
an event of Force Majeure prevents ITA from providing substantially all of the
services provided hereunder for more than (***) business days, then beginning
on the (***) business day Galileo’s obligation to pay for such services
pursuant to the provisions hereof shall be suspended until the cessation of
such Force Majeure.  Notwithstanding the
foregoing, if any event of Force Majeure prevents, or is reasonably likely to
prevent, ITA from providing substantially all of the services provided
hereunder for a period of more than 90 days, then Galileo shall have the right
to terminate this Agreement (but not the License Agreement), upon notice to
ITA.  In the event of such termination,
neither party will have any liability or obligation to the other under this
Agreement following the effective date of termination.

 

7.5          Exclusivity
of Remedies

 

The provisions of this Agreement
constitute the exclusive provisions applicable to ITA’s maintenance and support
of the Licensed Software and the provision and support of data and operations
therefor.  ITA disclaims any and all
warranties, express or implied, including but not limited to warranties of merchantability or fitness for
a particular purpose, except as specifically set forth herein.

 

7.6          Notices

 

Any notices given hereunder shall be given pursuant to
and as provided in the License Agreement. 
In addition, Galileo agrees that ITA may provide invoices to Galileo by
means of facsimile or email transmission.

 

7.7          Limitation
of Liability/Indemnification

 

The parties’ indemnification obligations
and the limitations of liability set forth in Sections 9 and 10, respectively,
of the License Agreement shall apply to this Agreement.

 

7.8          Miscellaneous

 

17

 

(a) The parties will attempt to resolve any disputes
arising hereunder in accordance with the dispute resolutions provisions of
Section 14 of the License Agreement.

 

(b) If any provision of this Agreement is declared by
a court of competent jurisdiction to be invalid or unenforceable, such
determination shall not affect the validity or enforceability of any other
provision hereof.

 

(c) This Agreement, together with the License
Agreement, represents the entire agreement of the parties with respect to the
subject matter hereof and any other previous understanding, commitments, or
agreement, oral or written, between Galileo and ITA with respect to the subject
matter hereof.

 

(d) No failure by either party to insist upon the
strict performance of any covenant, term or condition of this Agreement, or to
exercise any right or remedy, shall constitute a waiver of such right or remedy
on any subsequent occasion.

 

(e) The validity, construction, scope and performance
of this Agreement shall be governed by the laws of the State of Delaware,
exclusive of its choice of law provisions.

 

(f) This Agreement may not be amended except in
writing executed by duly authorized representatives of both ITA and Galileo.

 

(g) This Agreement may not be assigned by either party
except in connection with and under the circumstances permitted under the
License Agreement.  Subject to the
foregoing, this Agreement will be binding on the parties and their respective
successors and permitted assigns.

 

(h) This Agreement may be signed
in one or more counterpart copies, all of which together shall constitute one
Agreement and each of which shall constitute an original.

 

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of this 3rd day of October, 2002.

 

 

	
  ITA Software, Inc.

  	
   

  	
  Galileo International, L.L.C.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jeremy
  Wertheimer

  	
   

  	
  By:

  	
  /s/ KENNETH ESTEROW

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Jeremy Wertheimer

  	
   

  	
  Name:

  	
  /s/ Kenneth Esterow

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
   

  

 

 

18

 

APPENDIX
A

 

DESCRIPTION
OF PROCEDURES FOR PROTECTION OF CONFIDENTIALITY OF GALILEO PRIVATE FARES

 

ITA receives fareloads (each of which comprises a
complete set of fares and rules) at its data center, via FTP, from ATPCO.  ITA’s network at its data center(s) is
firewall-protected to prevent outside access. 
When received, a fareload is moved from the ATPCO area of the disk to
the ITA buildserver.  ITA’s buildserver
separates the fares according to (i) whether they are public or private tariffs
and (ii) if private, what ITA customer or other entity they relate to.  For each ITA customer, private fares relating
to that customer, as well as all public fares, are then moved to that customer’s
area of the disk and made accessible, via FTP, to that customer only (access to
each customer’s disk area is controlled by password).  Each customer’s FTP disk area is unique and
not accessible to any other customer. 
Private tariffs are normally identified as relating to a particular ITA
customer either by Category 15, using a pseudo city code (PCC), or by tariff
number.  No customer has access to the “buildserver”
area of the disk where all fares and rules are stored.  Specified ITA employees, whose positions
reasonably require access to the data center (such as employees in the
operations department)

 

Initially, Galileo will not provide ITA with either
PCCs or tariff numbers to identify Galileo private fares.  Instead, ITA will make available to Galileo,
at Galileo’s area of the disk, both (1) public fares and (2) all fares received
by ITA that ITA cannot identify, based on either PCC or tariff number, as
pertaining any other entity (in addition to all).  Galileo, and not ITA will be responsible for
identifying fares within this area as Galileo private fares.

 

ITA will insure, through password-protected access,
that no other ITA customer gains access to the Galileo area of the disk.  ITA will not responsible if another ITA
customer gains access to a Galileo private fare if the fare is made accessible
to another area of the disk as a result of either of the following (1) the
carrier filing the fare miscodes the fare or (2) ATPCO makes an error in
formatting or transmitting the fare.

 

ITA transmits each fareload from the
data center at which it is received to ITA’s other data center, via the secure
shell protocol (SSH).

 

ITA also transmits a copy of each
fareload to its office in Cambridge, Massachusetts.  All ITA employees have access, through their
passwords, to the network on which the data is kept; however, no access is
permitted without a password.  Network
passwords are given only to ITA employees; to the extent ITA gives access to
its internal network to anyone who is not an ITA employee, ITA will insure that
such person does not have access to the portions of the network that contain
Galileo data.

 

19

 

APPENDIX
B

 

DISASTER
RECOVERY PLAN

 

 

 

 [attached as a separate document]

 

20

 

APPENDIX C

 

ITA Software, Inc.

 

 

 

 

 

Standard Operating
Procedures

(SOP)

 

for

 

 

 

 

Operating Support to

 

GALILEO INTERNATIONAL,
L.L.C.

 

21

 

Introduction

 

The
purpose of this Standard Operation Procedure (SOP) document is to establish an
approach for the reporting and resolution of problems related to the operation
of ITA Software’s Low Fare Search (LFS) software, Availability Cache Server
(AVS) software, and supporting infrastructure.

 

It
should be understood that this document is technical in nature, and is not
meant to replace the Service Level Agreement which establishes many of the
parameters and milestones which apply to this document.

 

How a Problem Is Reported

(a)                                  Step 1: Classification

In order to report a problem, the following information must be gathered:

 

•                         Summary of problem

•                         Details (any context, error messages,
steps to reproduce, screen-shots, query samples, or other data that would be
useful in diagnosing the problem). For low fare search queries, please include
the query itself and the results received.

•                         Software components being used

•                         Contact information (business and
technical contacts with phone and email information)

•                         Reproducibility (how often and/or
reliably can the problem be reproduced?)

•                         Severity of impact (no impact, intermittent
failure, severe failure, critical business impact)

•                         Date and time of first occurrence,
duration and frequency of occurrences.

 

Additional tools and procedures may
be provided by ITA Software at a later date to improve the customer’s ability to
diagnose problems. The results of applying these procedures and tools should be
gathered with any other problem detail.

(b)                                 Step 2: Reporting

For all non-emergency problems, the classification information should be sent
as email to:

 

help@itasoftware.com

This email should be brief, with a descriptive subject. Any long errors, query
files or the like should be included as an attachment. No attachment should be
over 800kB in length.

For emergency problems, call the ITA Software Problem Reporting Hotline at:

 

(888) 206-6413

 

If
the hotline does not answer for any reason, leave a voice message, and then
send email to:

 

22

 

oncall-pager@itasoftware.com

(c)           Step
3: Tracking Assignment

All incoming requests will be assigned a tracking number. This tracking number
will be of the form XYYZZZZ (e.g. T000001). 
This tracking number should be used as a reference in any ongoing
communications.

(d)                                 Step 4: Diagnosis

All problems are diagnosed in two stages. First, a general assessment of the
problem is made and those conclusions are shared with the customer with an
estimate of the complexity of the problem rated 1-3.

 

•                         Complexity level 1 problems can be
addressed during the initial interaction with the customer, and no further
interaction should be required.

•                         Complexity level 2 problems require more
extensive effort and cannot be addressed during initial consultation with the
user, but can be addressed by a single engineer within the scope of their
regular duties.

•                         Complexity level 3 problems require a
non-trivial amount of effort or new resources to solve.  The solution to these problems requires the
assignment of a dedicated staff resource or the allocation of unbudgeted resources.

For complexity level 2 and 3 problems, additional work may be required after
the initial user consultation. In these cases, a ticket number will always be
given to the user (either by email or during the call to the hotline).

(e)                                  Step 5: Follow-up

Once information is received that points to an ongoing operational problem,
on-call operations engineers will apply systematic diagnostic procedures to
triage the problem and determine whether or not there are any available
workarounds.  If it is confirmed to be a
valid problem of an operational nature that either has an immediate adverse
impact or has the potential to present a future adverse impact, the work to
resolve the problem will be started as soon as possible.  If additional personnel resources are required
to address the incident, they will be notified.

 

The
customer will then be updated as required by ITA personnel in accordance with
reporting guidelines outlined in the ITA/Galileo SLA.

 

If
the Galileo report is classified as a feature request, request for information,
user error or known problem, then the report will be passed to the Galileo
Customer Relations Manager (CRM) for prioritization and tracking.

 

23

 

APPENDIX
D

 

OPERATIONS
HOSTED BY GALILEO

 

 

If and when Galileo (or its designated service
provider) assumes responsibility for hosting the operation of the Licensed
Software, then the scope of services ITA will provide to Galileo under the SLA
will change as follows:

 

ITA will continue to provide Maintenance Services
pursuant to Section 2, except that the parties may revise the process for
testing Upgrade Releases as set forth in Section 2.1(c).

 

ITA will no longer need to provide Fares and Schedule
data; ITA will, however, still be required to provide the other Data Services
specified in Section 3 as requested by Galileo, including the provision of
availability data to the Licensed Software from the availability cache supplied
by Worldspan, Galileo or another source. 
Presently, ITA uses operations scripts in connection with loading of
data to the Licensed Software; in the event Galileo terminates Data Services,
ITA will provide such scripts to Galileo as an accommodation; however, such
scripts will not be considered “Licensed Software” for warranty purposes,
unless the hardware configuration utilized by Galileo is approved by ITA, and
any services provided by ITA in connection therewith will not be included in
the Maintenance Services.

 

ITA would no longer be obligated to operate the Data
Center or provide Operations Services described in Section 4, except to the
extent (if any) that such services are required to perform the Data Services
relating to the provision of availability data.

 

 

The performance standards set forth in Section 5 will
be modified as follows: the parties will develop a standard for determining
whether a problem is a software problem or a data or operations problem.  ITA will be responsible for Maintenance
Services with respect to software problems but not with respect to any problems
with data (other than availability data) or operations.

 

ITA would provide Galileo advice and support related
to operation, testing, and performance measuring of the Licensed Software, as
needed.

 

When the parties develop a detailed project plan
pursuant to Section 7.3(b)(ii), ITA will inform Galileo of the fees that will
be charged under Section 6 for Maintenance Services and for Data Services
(relating to availability data only), including the advice and support referred
to above.  Such charges may be fixed
monthly charges, hourly charges based on services rendered, or some combination
thereof, and will be reasonably based upon ITA’s actual cost of providing such
services.

 

ITA, in consultation with Galileo, will amend the
Disaster Recovery Plan so as to be consistent with the foregoing.

 

24

 

APPENDIX
E

 

DEFINITIONS
RELATING TO NON-SUBSCRIBER PNR CHARGE

 

“Non-Subscriber PNR” means a PNR created by a Non-Subscriber.  In connection therewith, the following terms
have the respective meanings indicated below:

“Availability
Request” means a request from ITA for availability information for flight
segments on air carriers.

“Availability
Response” means the Worldspan response to an Availability Request from ITA.

“AVS
Data” means data comprising additions or modifications to the AVS Database.

“AVS
Database” means, collectively, (i) a database, copies of which will be
maintained by both ITA and Worldspan, comprising flight availability status
information relating to specific flights, dates, routings and classes of
service; and (ii) any additional information received by ITA from Worldspan
relating to the use of such database.

“Echo
Availability Screen” means Worldspan’s response to any request for availability
information which is received from a user of the Worldspan System (other than
ITA).

“ITA
Offering” means any product commercially offered by ITA that includes any
Worldspan  Data.

“Non-Subscriber”
means any User who does not process in the Worldspan System substantially all
its travel transactions which are generated from ITA Offerings.

“PNR”
means a passenger name record.

“User”
means any person who uses an ITA Offering.

“Worldspan
Data” means, collectively, the AVS Database, AVS Data, Availability Responses
and Echo Availability Screens, and any compilation or derivative thereof,
whether made by Worldspan, ITA or any third party.

“Worldspan
System” means the computer reservations systems operated by Worldspan.

 

25

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