Document:

sncr123117ex14c6

                                May 5, 2017    Daniel Rizer      [Delivered Electronically]    Re: Executive Employment Letter      Dear Daniel,       On behalf of Synchronoss Technologies, Inc. (the Company), I am pleased to confirm your   role on the Synchronoss Executive Team.  In your role, your title will be Executive Vice   President, Business Development, and you will report directly to the Company’s CEO,   Stephen Waldis.          Your annual base salary for this position will remain at $420,000, and you will also be   eligible for a discretionary annual target bonus of 80% of your base salary based upon the   achievement of certain company objectives to be established and approved by the Board of   Directors or its Compensation Committee.  Your compensation will be paid in accordance   with the Company’s regular payroll practices, subject to normal payroll taxes and other   applicable deductions.  Your position will be classified as exempt from the overtime and   other requirements under federal and state law.      In addition, you will be eligible to participate in the Company’s 2017 Executive Long Term   Incentive (LTI) Plan with a target value of $1 million.  The LTI Plan typically consists of 1/3   time-based Restricted Stock Awards (RSAs), 1/3 time-based Stock Options, and 1/3   Performance Shares based on performance criteria established by the Board of Directors.    The number of RSAs granted will be based on the stock price as of the date of the grant, and   the number of options granted will be based on the Black Scholes value of the stock price as   of the date of the grant.  All of the foregoing is subject to the approval of the Board of   Directors or its Compensation Committee.  The RSAs shall vest one-third per year.  One-  fourth of the Stock Options shall vest after the first year , and 1/48th every month thereafter.     All of the Performance Shares shall vest upon the approval of the Board of Directors or its   Compensation Committee based upon whether the Company has met the required   performance metrics.       In addition, because you have been identified as a Tier One Executive at Synchronoss, your   employment at the Company will also be governed by the terms and conditions of the Tier   One Executive Employment Plan, a copy of which is attached hereto.      However, please be aware that you retain the option, as does Synchronoss, of ending your   employment with Synchronoss at any time, with or without notice and with or without cause.    As such, your employment with Synchronoss is at-will and neither this nor any other oral or  written representations may be considered a contract for any specific period of time.      

 

                     We are excited about your addition to the Executive Team and look forward to your  contributions to the Synchronoss 3.0 mission.  Please verify the acceptance of your role by  signing below and indicating the date on which you signed.    Should you have any questions, please do not hesitate to contact me.       Regards,                                  Kevin Hunsaker  EVP & Chief Human Resources Officer            _______________________________________   ______________________  Acceptance Signature                                    Datesncr123117ex1021

                                May 8, 2017    Chris Putnam      [Delivered Electronically]    Re: Executive Employment Letter      Dear Chris,       On behalf of Synchronoss Technologies, Inc. (the Company), I am pleased to formally confirm  your role on the Synchronoss Executive Team.  Your title will remain Executive Vice  President, Sales, and you will report directly to the Company’s President & COO, Bob Garcia.          Your annual base salary will remain at $340,000, and you will still be eligible for a  discretionary annual target bonus of 120% of your base salary based upon the achievement  of certain company objectives to be established and approved by the Board of Directors or  its Compensation Committee.  Your compensation will be paid in accordance with the  Company’s regular payroll practices, subject to normal payroll taxes and other applicable  deductions.  Your position will be classified as exempt from the overtime and other  requirements under federal and state law.    In addition, you will be eligible to participate in the Company’s 2017 Executive Long Term  Incentive (LTI) Plan with a target value of $1.5 million.  The LTI Plan typically consists of  1/3 time-based Restricted Stock Awards (RSAs), 1/3 time-based Stock Options, and 1/3  Performance Shares based on performance criteria established by the Board of Directors.   The number of RSAs granted will be based on the stock price as of the date of the grant, and  the number of options granted will be based on the Black Scholes value of the stock price as  of the date of the grant.  All of the foregoing is subject to the approval of the Board of  Directors or its Compensation Committee.  The RSAs shall vest one-third per year.  One- fourth of the Stock Options shall vest after the first year , and 1/48th every month thereafter.     All of the Performance Shares shall vest upon the approval of the Board of Directors or its   Compensation Committee based upon whether the Company has met the required   performance metrics.       In addition, because you have been identified as a Tier One Executive at Synchronoss, your   employment at the Company will also be governed by the terms and conditions of the Tier   One Executive Employment Plan, a copy of which is attached hereto.      However, please be aware that you retain the option, as does Synchronoss, of ending your   employment with Synchronoss at any time, with or without notice and with or without cause.    As such, your employment with Synchronoss is at-will and neither this nor any other oral or  written representations may be considered a contract for any specific period of time.      

 

                     We are excited about your addition to the Executive Team and look forward to your  contributions to the Synchronoss 3.0 mission.  Please verify the acceptance of your role by  signing below and indicating the date on which you signed.    Should you have any questions, please do not hesitate to contact me.       Regards,                                  Kevin Hunsaker  EVP & Chief Human Resources Officer            _______________________________________   ______________________  Acceptance Signature                                    Datesncr123117ex12d8

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Application Service Provider Agreement                                                                                                                              Between                                                                                                                   Verizon Sourcing LLC                                                                                                                                 And                                                                                                     SYNCHRONOSS TECHNOLOGIES, INC.                                                                                                                       GDSVF&H\3541367.2Application  Service Provider Agreement                                                                                        Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                                                       TABLE OF CONTENTS                      APPLICATION SERVICE PROVIDER AGREEMENT ...................................................... 1            1.    PARTIES ............................................................................................................. 1            2.    TERM .................................................................................................................. 1            3.    DEFINITIONS ...................................................................................................... 1           4.    SCOPE/AUTHORIZATION LETTERS .................................................................. 7            5.    LICENSES........................................................................................................... 9           6.     OVERALL PERFORMANCE REQUIREMENT .................................................. 14            7.    HOSTING .......................................................................................................... 15            8.    DEVELOPMENT SERVICES............................................................................. 16            9.    SECURITY ........................................................................................................ 17            10.   ADDITIONAL REQUIREMENTS ....................................................................... 17           11.   FEES/PAYMENT ............................................................................................... 18           12.   RECORDS AND REPORTS .............................................................................. 20           13.   DELIVERY......................................................................................................... 21           14.   TESTING, EVALUATION AND APPROVAL ..................................................... 21           15.   REPRESENTATIONS AND WARRANTIES ...................................................... 23           16.   ESCROW .......................................................................................................... 27           17.   TERMINATION .................................................................................................. 30           18.   INFRINGEMENT ............................................................................................... 32           19.   CONFIDENTIAL INFORMATION ...................................................................... 33           20.   OWNERSHIP .................................................................................................... 34           21.   SUBSCRIBER DATA AND CONTENT ............................................................. 36           22.   USE OF TRADEMARKS ................................................................................... 38           23.   PUBLICITY AND DISCLOSURE ........................................................................ 39           24.   COMPLIANCE WITH LAWS .............................................................................. 40   GDSVF&H\3541367.2Application  Service Provider Agreement                                             Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                             25.   FORCE MAJEURE ............................................................................................ 42            26.   ASSIGNMENT ................................................................................................... 42            27.   SUBCONTRACTING ......................................................................................... 43            28.   TAXES ............................................................................................................... 44            29.   PERMITS ........................................................................................................... 45            30.   WORK RULES AND ACCESS REQUIREMENTS .............................................. 45            31.  INDEMNIFICATION ........................................................................................... 49            32.  INSURANCE ..................................................................................................... 50            33.  RELATIONSHIP OF PARTIES .......................................................................... 51           34.   NOTICES .......................................................................................................... 51            35.  NONWAIVER .................................................................................................... 52            36.  SEVERABILITY ................................................................................................ 52            37.  LIMITATION OF LIABILITY .............................................................................. 53            38.  DISPUTE RESOLUTION ................................................................................... 53           39.   ORDER OF PRECEDENCE .............................................................................. 54           40.   SECTION HEADINGS ....................................................................................... 54           41.   SURVIVAL OF OBLIGATIONS ......................................................................... 54           42.   CHOICE OF LAW AND JURISDICTION ........................................................... 55           43.   GIFTS AND GRATUITIES AND CONFLICTS OF INTEREST ........................... 55           44.   ENTIRE AGREEMENT ...................................................................................... 56           45.   SIGNATURES ................................................................................................... 56           EXHIBIT A – FORM OF AUTHORIZATION LETTER ................................................... 57           EXHIBIT B – CHANGE REQUEST FORM .................................................................... 59           EXHIBIT C-1 - BASELINE INFORMATION SECURITY REQUIREMENTS .................. 61           EXHIBIT C-2 - VERIZON WIRELESS NETWORK SECURITY REQUIREMENTS.......80                      EXHIBIT C-3 - CLOUD SECURITY REQUIREMENTS..........................................87   GDSVF&H\3541367.2Application  Service Provider Agreement                                             Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                             EXHIBIT D - DISASTER RECOVERY PLAN ................................................................ 88            EXHIBIT E – COMPLIANCE WITH MINORITY, WOMAN-OWNED, AND SERVICE-           DISABLED VETERAN BUSINESS ENTERPRISES (MWDVBE) UTILIZATION ........... 89            EXHIBIT F- NONDISCLOSURE AGREEMENT ............................................................ 94            EXHIBIT G .................................................................................................................... 97            SUMMARY OF VERIZON’S GUIDELINES ................................................................... 97            FOR EVALUATING CRIMINAL RECORD REPORTS .................................................. 97                                      GDSVF&H\3541367.2Application  Service Provider Agreement                                             Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                           APPLICATION SERVICE PROVIDER AGREEMENT    1.    PARTIES      This Application Service Provider Agreement is made between Synchronoss   Technologies Inc. a Delaware corporation, with offices at 200 Crossing Blvd,   Bridgewater, NJ  08807, on behalf of itself and for the benefits of its Affiliates     (“Supplier"), and Verizon Sourcing LLC, a Delaware limited liability company, having an   office and principal place of business at One Verizon Way, Basking Ridge, New Jersey   07920, on behalf of itself and for the benefit of its Affiliates (individually or collectively   “Verizon”), each a Party and together the Parties hereto.      NOW THEREFORE, in consideration of the mutual promises and conditions set forth   herein, receipt of which is hereby acknowledged, and intending to be legally bound, the   Parties hereto agree as follows:      2.    TERM      This Agreement shall become effective when fully executed by both Parties hereto (the   “Effective Date”), and the term of the Agreement shall retroactively commence on April   1, 2013 and shall continue in effect until five years from the Effective Date  (the “Initial   Term”).  This Agreement shall be automatically renewed for subsequent one-year   periods (each, a “Renewal Term” and together with the Initial Term, the “Term”) at the   end of the Initial Term or any Renewal Term unless written notice of intent not to renew   is given by one Party to the other **** prior to the end of the Initial Term or any Renewal   Term.  Notwithstanding anything herein to the contrary, the Term shall continue in effect   so long as any Authorization Letters are outstanding.       3.    DEFINITIONS       The terms defined in this Section shall have the meanings set forth below whenever they   appear in this Agreement, unless the context in which they are used clearly requires a   different meaning or a different definition is described for a particular Section or   provision:      3.1   “Acceptance” or “Accepted” means delivery to Supplier by Verizon of its written         notice of acceptance or deemed acceptance as provided in Section 14 or any         Authorization Letter.     3.2   “Affiliate” means, at any time, and with respect to any corporation, partnership,         person or other entity, any other corporation, partnership, person or entity that at         such time, directly or indirectly through one or more intermediaries, controls, or is         controlled by, or is under common control with, such first corporation,         partnership, person, or other entity.  As used in this definition, “control” means         the possession, directly or indirectly, of the power to direct or cause the direction         of the management and policies of a corporation, partnership, person or other         entity, whether through the ownership of voting securities, or by contract or         otherwise.                                                                          1   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS   

 

                                                                             3.3  “Agreement” means this Application Service Provider Agreement, including all        Orders, Statements of Work, Exhibits, attachments and all mutually agreed to        Authorization Letters attached to and made a part of this Agreement.   3.4   “App(s)” means the software applications, including Catalog Apps, developed by        Supplier for distribution to Subscribers for download, installation and use on such        Subscriber’s Wireless Devices.    3.5   “App Store Catalog” means the third party online repository of applications to        which Verizon or Supplier submits for publication an App subject to this        Agreement. Examples of this include the online Qualcomm Brew Catalog, the        Apple iTunes App Store, the Google Play Store, and the Amazon Kindle Fire        Marketplace.   3.6   “App Store Owner” means the third party that owns or controls a given App Store        Catalog.   3.7   “App Store Developer Agreement” means the agreement (typically a standard-       form agreement) governing the submission, review and publication of        applications, including any App, to an App Store Catalog, entered into between        the  developer of such application and the App Store Owner (or its designee), in        addition to any policies incorporated into such App Store Developer Agreement.    3.8   “Application Service Provider” or “ASP” means a Person who manages and        delivers content or application capabilities to enable Verizon to make such        content or application capabilities available to its Subscribers.   3.9   “Authorization Letter” means a service agreement, order, statement of work or        authorization letter, substantially in the form of Exhibit A, mutually agreed to        between Verizon and Supplier and duly executed by an authorized        representative of each party.   3.10  “Background Materials” means Supplier’s tangible and intangible materials and        intellectual property that was developed independently from this Agreement or        existed before Supplier commenced work on any Software, or Services provided        under this Agreement or any Authorization Letter, including without limitation        reports, documentation, drawings, computer programs (source code, object code        and listings), inventions, know-how, creations, works, devices, masks, models        and work-in-process, and any enhancements, corrections, Updates or        modifications to such tangible and intangible materials and intellectual property        provided it does not include Verizon Confidential Information and expressly        excludes any Custom Software or Paid Work Product.      3.11   “Call Detail Information” shall be any information that pertains to the        transmission of specific telephone calls, including: (a) for outbound calls, the        number called and the time, location or duration of any call, and (b) for inbound        calls, the number from which the call was placed and the time, location, or        duration of any call.                                                                             2   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                           3.12  “Catalog App(s)” means any software applications developed by Supplier using a        third party software development kit and tools developed by an App Store Owner        and posted on the online App Store Catalog.     3.13   “Change Request” means a request to modify a previously agreed upon        Authorization Letter, in the form attached to this Agreement as Exhibit B, sent in        writing or via electronic transmission pursuant to the Change Request Process        set forth in Section 4.3 of this Agreement and mutually agreed to by Verizon and        Supplier.   3.14  “Commercial Service Date” means the first date that Verizon makes a Data        Service commercially available to Subscribers under an Authorization Letter.   3.15  “Content” means digital media objects that Subscribers may preview, download,        display, store or otherwise use via the Verizon Service. For greater certainty,        Content may include audio, pictures, images, text, graphics, video or other media        objects in formats described in the Specifications or as mutually agreed by the        Parties, but shall not include any text or digital media objects originated by        Subscribers.   3.16  “Content Provider” means any third party who has licensed Content to either        Verizon or Supplier.   3.17  “CPNI” or “Customer Proprietary Network Information” shall be as defined in 47        U.S.C. Section 222(h)(1).   3.18  “Custom Software” means the system software, application software and other        computer programs resulting from the Development Services provided by        Supplier under this Agreement or an Authorization Letter that are not part of the        Platform or Supplier Background Materials.  Custom Software includes both        object code and source code.     3.19  “Data Service” means a service made available by Verizon to Subscribers based        upon the Platform, Services, and/or Software described in an applicable        Authorization Letter including all exhibits attached thereto, as amended by any        Change Request.    3.20  “Deliverables” means all Documentation and other materials, and all Upgrades        thereto (i) are delivered to Verizon as described in an Authorization Letter or (ii)        that Supplier agrees to provide to Verizon in providing Software or in performing        the Services described in an Authorization Letter.  For the avoidance of doubt,        the Platform shall not be considered a Deliverable.    3.21  ”Development Services” means the design, creation, development, modification        or enhancement of computer programs by Supplier pursuant to this Agreement        or an Authorization Letter.    3.22  “Documentation” means all documentation containing requirements, technical        and functional specifications, relating to the design, testing, training, operation        and support of a Platform or  Software whether in print or in electronic form,        including without limitation, (i) Supplier’s then current specifications relating to                                                                          3  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                   Platform, Service or Software, (ii) user, maintenance and system administration        documentation including without limitation user guidelines, operating manuals,        training manuals and technical materials relating to Platform or Services; and (iii)        any and all revisions to the above that Supplier provides or agrees to provide to        Verizon in an Authorization Letter.    3.23  “Error” means failure of the Platform, Software or Services to perform in        accordance with its Specifications.    3.24  “Hardware” means the hardware, equipment or facilities furnished by Supplier or        used by Supplier to provide Hosted Services (including the Firmware licensed to        Verizon when such Firmware is in the Hardware) and all additions, extensions,        components, supplies, test equipment, apparatus and parts, as specified or        identified in this Agreement or in an Authorization Letter, including, without        limitation, those set forth or otherwise identified in any Authorization Letter, and         all other Exhibits to this Agreement.    3.25  “Hosting Service” or “Hosted Service” shall mean the implementation and         ongoing operation of a Platform connected to the Verizon Network by any         means, including, without limitation, wide area data communications network         connections to enable a Data Service to be provided to and used by Subscribers.     3.26  “Indirect Channel Entity” means any third party whom Verizon has authorized in         writing to offer, promote, market and resell Verizon Services indirectly or through         one or more tiers of indirect distribution, under the Trademarks of Verizon or the         Trademarks of such Indirect Channel Entity. For greater certainty, the term         “Indirect Channel Entity” expressly does not include overseas Affiliates of Verizon         or its parent companies.    3.27  “Intellectual Property Rights” means any patent, copyright, rights in trademarks,         trade secret rights and other intellectual property or proprietary rights arising         under the laws of any jurisdiction.      3.28  “Milestones” means the schedule of development and delivery milestones         specified in an Authorization Letter.    3.29  “Person” means any natural person, corporation, partnership, limited liability         company or other entity.     3.30  “Platform” means the system comprised of computer equipment, Software and         network interconnections and services, owned, implemented and operated by         Supplier (and any corrections, Updates, enhancements or modifications thereto         which enables Verizon to provide or support a Data Service to Subscribers as         provided in an Authorization Letter.     3.31  “Products” means all Platform, Software and Services, and all hardware,         equipment, supplies, materials, parts, components and assemblies used to         provide the Services described in an Authorization Letter.    3.32  “Self-Help Code” means (i) any back door, “time bomb”, drop-dead device, or         other software routine designed to disable a computer program automatically                                                                           4   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                   with the passage of time or under the positive control of a person other than a         licensee of the program and (ii) any digital rights management or copy protection         code for the Software other than as noted in the applicable Documentation.  Self-        Help Code does not include software routines in a computer program designed to         permit the licensor of the computer program (or other person acting by authority         of the licensor) to obtain access to a licensee’s computer system(s) (e.g., remote         access via modem) for purposes of maintenance or technical support.     3.33  “Services” means  all installation, implementation, technical support,        maintenance, modification, training, repair, Development Services, Hosting        Services, and other services related to a Data Service or Software that Supplier        will provide to Verizon, as described in an applicable Authorization Letter        including all exhibits attached thereto, as amended by any Change Request.     3.34  “Service Description” means the document attached to the applicable         Authorization Letter and made a part thereof, that describes the Service or         Software (as applicable) that Supplier will provide to Verizon, as may be modified         by Change Requests agreed to by Supplier and Verizon pursuant to the Change         Request Process.    3.35  “Verizon Service Requirements” means, collectively, all of the Specifications and         all of the requirements for  a Data Service or Software set forth or referenced in         the applicable Authorization Letter, including but not limited to the  Service         Description, Service Level Agreement; Security Requirements (as set forth in         Exhibit C and as supplemented or as modified in an applicable Authorization         Letter); Training Plan and Disaster Recovery Requirements documents, as         applicable and as amended from time to time by any mutually agreed upon         Change Request, or otherwise upon mutual written agreement of the Parties.     3.36  “Service Level Agreement” or “SLA” means the document attached to the         applicable Authorization Letter, which defines and sets forth the service level         commitments to be performed by Supplier.    3.37  “Service Web Site” means the location on the Internet or other public data         network accessed via a computing device at a URL specified by Verizon which         will serve as a location and mechanism through which (i) information about a         Data Service or Software may be provided by Verizon, (ii) a Person may elect to         become a Subscriber or modify elections made for such Data Service or         Software, or (iii) Content may be accessed by, transmitted to the Data Service         by, or delivered to Subscribers.  With respect to any Web Site maintained on the         World Wide Web, such Web Site includes all HTML Pages (or similar unit of         information presented in any relevant data protocol) that either are identified by         the same second-level domain (such as www.verizonwireless.com) or by an         equivalent level identifier in any relevant address scheme.    3.38  “Software” means on whatever media provided, a program, or programs,         including data files, system software and application software and firmware         consisting of machine readable logical instructions and tables of information,         which guide the functioning of a processor or which provide functional and         operational performance capabilities and capacities, including all updates,                                                                            5   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                 upgrades and enhancements thereto. The term Software as used in this        Agreement shall include Apps.   3.39  “Source Code” means the human-readable version of particular Software, as well        as associated documentation required or necessary to enable an independent        third party programmer with reasonable programming skills to compile, create,        operate, maintain, modify and improve such Software and associated        documentation without the help of any other Person.   3.40  “Specifications” means the written functional and technical specifications and        requirements for a Platform or Software attached to or referenced in this        Agreement or the applicable Authorization Letter and all Documentation, as        amended from time to time by any mutually agreed upon Change Request or        otherwise by mutual written agreement of the Parties.    3.41  “Subscriber” means a Person who (i) subscribes, in a manner prescribed by        Verizon, to access and use a Data Service or Software from a Wireless Device        and/or (ii) registers in a manner prescribed by Verizon, to access and use a Data        Service or Software from a personal computer. For greater certainty, a Person        may become a Subscriber either directly through Verizon or indirectly through an        Indirect Channel Entity.    3.42  “Subscriber Data” means information or data that (i) is provided by Verizon or a        Subscriber, or compiled, generated or collected by either Party in connection with        a Data Service or Software, and (ii) identifies the Subscriber individually, or that        when compared to or otherwise combined or processed with other information        enables an individual Subscriber to be identified.  For greater certainty,        “Subscriber Data” includes, without limitation, user name or ID, account number,        individual usage data, user profile or preferences, credit card or other payment        information, mailing address, email address, IP address, landline or cellular        telephone numbers, Social Security number and date of birth.    3.43  “Trademarks” means, with respect to each Party, their trademarks, service        marks, trade names, logos, brands and other proprietary indicia.   3.44  “Unauthorized Code” means any virus, Trojan horse, worm, rootkit, or other        software routine or hardware component designed to enable unauthorized        access to, to disable, to erase, or otherwise to harm software, hardware, or data        or to perform any other such actions.  The term Unauthorized Code does not        include Self-Help Code.    3.45  “Updates” means all future releases, patches, fixes, corrections, enhancements        program code changes, improvements, upgrades, updates and new releases        relating to Software, as well as refinements, solutions, changes and corrections        to the Software as are required to keep the Software in conformance with the        applicable Service Requirements and that are created by Supplier as corrections        for defects in the Software, including without limitation error corrections,        installation programs, and data conversion programs applicable to the Software.   3.46  “Usage Data” means information or data other than Subscriber Data (as defined        above) that describes the operation of a Data Service for or use of  a Data                                                                          6  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                   Service by Verizon, including but not limited to the number of Subscribers         served, the volumes or types of Content stored, downloaded or used, the         patterns or frequency of such use, use by geographic area or other similar         analytical breakdown, financial information, network configurations,         characteristics or capacity, performance metrics, test results, trouble reports and         customer service information.   3.47   “Use” means (i) to read Software into or out of hardware memory; (ii) to access,         use, execute, operate, display, perform, and store Software, in whole or in part,         on any computer system, processor or mobile devices on which Software will         function, and on any number of computer systems, processors, or mobile         devices; (iii) to transfer into, and store in, equipment all or any portion of the        Software; and (iv) to process and execute instructions, statements and data        included in, or output to, the Software, all without any modifications to the        Software.   3.48   “Verizon Content” means Content (as defined in Section 3.15) that is owned by         Verizon or licensed to Verizon by third parties.      3.49  “Verizon Trademarks” means the Trademarks of Verizon that are used in a Data         Service or Software or by Verizon in connection with Verizon Services.    3.50  “Verizon Services” means all voice and data communications services provided        by Verizon, including, but not limited to, the wireless airtime and landline usage        incidental to providing such services.   3.51  “Verizon Network” means the combination of interconnected, integrated        telecommunications equipment owned, operated, licensed or leased by Verizon        or its Affiliates, into which a Data Service will be integrated at one or more        specified points as mutually agreed, that interoperates concurrently and as a        whole for the purpose of transmitting, switching and receiving signals, containing        voice messages and data, by any means, including electromagnetic (i.e., through        the air) means.   3.52  “Supplier Content” means Content (as defined in Section 3.15) that is owned by        Supplier or licensed to Supplier by third parties.    3.53  “Wireless Device” means any communications device that enables Subscribers        to access and use a Data Service or Software.   4.    SCOPE/AUTHORIZATION LETTERS      4.1  This Agreement does not by itself order any Service or Software.  Verizon shall        order Service or Software by submitting an Authorization Letter, substantially in        the form attached hereto as Exhibit A, in accordance with the terms of this        Agreement.     4.2  Authorization Letters          4.2.1 Supplier shall furnish Service or Software as specified in Authorization              Letters issued from time to time by Verizon and accepted by Supplier.                                                                           7   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                       Verizon shall from time to time issue Authorization Letters in the form              appended hereto as Exhibit A, setting forth in detail the specific tasks to              be performed and the time frame in which they are to be performed.               Authorization Letters for Development Services shall set forth a              description of the services and the Custom Software or Paid Work              Product ordered, if any, including Service Requirements, Milestones,              pricing, and other relevant information, shall be signed by both parties,              and shall be identified as an Authorization Letter issued pursuant to this              Agreement.         4.2.2 Verizon shall appoint a Project Leader in each Authorization Letter issued             by Verizon under this Agreement.       4.3  Change Requests          4.3.1 Verizon and Supplier may, at any time, agree to make additions, deletions             or other modifications to a previously requested Service or Software             through the Change Request Process set forth in Section 4.3.2 below.              Such requests may include one or more documents appended thereto, all             of which collectively shall comprise the requests.  Change Requests shall             be in the form appended hereto as Exhibit B.  The parties acknowledge             and agree that Change Requests shall not be used when the work             requested will involve creation of new Custom Software or Paid Work             Product, the ownership of which has not been previously agreed upon in             an Authorization Letter.        4.3.2 Upon receipt of any proposed Change Request from Verizon, Supplier             will provide to Verizon (i) a written a description of the work Supplier             anticipates performing in order to effectuate requested change(s), (ii) a             schedule for commencing and completing such work, and (iii) the costs to             Verizon associated with such change(s) or services.  If Verizon elects to             have Supplier perform the changes requested, Verizon will have such             Change Request signed by an authorized representative and Supplier             shall then also have such Change Request signed by an authorized             representative.  A Change Request shall not be valid and neither Supplier             nor Verizon will incur any liability thereunder until signed and approved by             authorized representatives of both Parties (the “Change Request             Process”).         4.3.3 Except as otherwise provided in a Change Request (or the underlying             Authorization Letter), Verizon may cancel or reschedule Change             Requests for convenience, in whole or in part, by providing at least ****             written notice to Supplier. Supplier shall promptly curtail all activities in             respect of such Services in the Change Request. Except as otherwise             provided in the Change Request (or the underlying Authorization Letter),             Verizon’s sole liability to Supplier under such cancelled Change Request             will be the payment of all amounts due Supplier for work performed as             supported by reasonable documentation through the effective date of             cancellation.  Where such work was to be paid on delivery of a Milestone             or Deliverable, charges for such work shall be based on a time and             materials basis calculated as number of hours                                                                        8  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                       worked at $**** (no hours prior to the execution of such Change Request              shall be included) for any work in progress, capped at **** of the payment             due for such work in the applicable Change Request (or the underlying             Authorization Letter) for such Milestone or Deliverable, unless other             termination fees or charges are specified under such Authorization Letter             (in which case such stated termination fees or charges shall be in lieu of             any other partial payments).    4.4  Affiliates         An Affiliate that issues an Authorization Letter may enforce the terms and        conditions of this Agreement with respect to any Software or Services purchased        by such Affiliate as though it were a direct signatory to the Agreement.  Default        by one Affiliate shall not affect any other Affiliate party to this Agreement.      5.    LICENSES         5.1.1 Supplier grants to Verizon and its Affiliates and to its and their               employees, agents and contractors, a non-exclusive, irrevocable (other              than for Verizon’s uncured material breach),  worldwide,  license and right             to Use and access the Platform, Services and, to the extent Software is             provided to Verizon, an unlimited number of copies of any Software and             any Documentation related thereto required for Use and access to the             Platform as specified in an Authorization Letter during the Term, at the             prices set forth in the applicable Authorization Letter.  Where expressly             permitted by an Authorization Letter, Software may be sublicensed by             Verizon to its original equipment manufacturers (“OEMs”), customers and             Indirect Channel Entities in accordance with the foregoing sentence.         5.1.2 Verizon shall also have the right, at no additional charge, to Use the             Software by means of remote electronic access at locations other than             the locations at which the Software is stored.  Supplier also grants to             Verizon the right to authorize Use of such license to its subcontractors,             agents, contractors, outsourcing entities and others for use when             performing services for Verizon; provided that Verizon shall remain             responsible to any violation of the Agreement or any Authorization Letter             by such parties.  In addition, if Verizon transfers or assigns the Software             to an Affiliate or a third party in connection with the provision or support of             network services, then the license granted hereunder shall extend to such             transferee or assignee.  No such authorization, transfer or sublicense             shall release Verizon from its obligations hereunder.   5.2  License Term           Except as otherwise set forth herein, the term of each license of Software       granted under this Agreement or any Authorization Letter shall commence on the       applicable delivery date, or such other date as set forth in an Authorization Letter,       and shall remain in effect perpetually, or for such shorter term as set forth in an       Authorization Letter, or until the Use of the Software, as it may have been       updated or enhanced is permanently discontinued by Verizon, unless such       license for Software is terminated in accordance with Section 17.                                                                        9  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                             5.3  Shrink-Wrap Licenses            Under no circumstances shall any Supplier shrink-wrap or click-wrap license be        given any force or effect in connection with any Software and Verizon specifically        rejects all such licenses.  The Parties agree to replace the terms of such licenses        with the terms of this Agreement or an Authorization Letter, if applicable.    5.4  Content Licenses            5.4.1 Verizon grants to Supplier a limited, nonexclusive, non-transferable,              royalty-free license to Verizon Content to copy, store, display, transmit,              distribute and sell Content solely for the purpose of providing Verizon              Content via its Platform for Verizon’s Data Service to Subscribers in              accordance with the applicable Authorization Letter, expressly without the              right of further sublicense of any of the foregoing.  Nothing in this Section              shall be interpreted as granting Supplier any greater rights or              authorizations than are granted to Verizon pursuant to its licensing              agreements with Content Providers.  Supplier shall have no right to              reproduce or sub-license, re-sell or otherwise distribute all or any portion              of Verizon Content to any person in any form or any manner other than as              necessary or appropriate in providing a Service or Software in              accordance with the applicable Service Requirements. Except as              otherwise agreed in writing, Supplier shall not receive, transmit, alter,              copy, access, store, or otherwise use Verizon Content except for              purposes of performing its obligations under an applicable Authorization              Letter.  Supplier shall protect all Verizon Content from unauthorized              alteration, copying, access, storage, transmittal or use as required in this              Agreement and as provided in the Service Requirements.             5.4.2 Supplier grants to Verizon a limited, nonexclusive, non-transferable              license to Supplier Content to copy, store, display, transmit, distribute and              sell Supplier Content solely for the purpose of providing Supplier Content              through the Platform via a Data Service to Subscribers in accordance with              an applicable Authorization Letter, expressly without the right of further              sublicense of any of the foregoing.  Nothing in this Section shall be              interpreted as granting Verizon any greater rights or authorizations than              are granted to Supplier pursuant to its licensing agreements with Content              Providers.  Verizon shall have no right to reproduce or sub-license, re-sell              or otherwise distribute all or any portion of Supplier Content to any person              in any form or any manner other than as necessary or appropriate in              providing a Data Service in accordance with the applicable Service              Requirements.   5.5   All rights and licenses granted under or pursuant to this Agreement or any        Authorization Letter by Supplier to Verizon are, and shall otherwise be deemed to        be, for the purposes of Section 365(n) of the United States Bankruptcy Code        (“Code”), licenses to rights to “intellectual property” as defined in the Code.  The        Parties agree that Verizon, as licensee of such rights under this Agreement, shall        retain and may fully exercise all of its rights and elections under the Code.  The        Parties further agree that, in the event of a bankruptcy proceeding by or against        Supplier under the Code, Verizon shall be entitled to retain all of its rights                                                                          10   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                             (including all licenses) under this Agreement and/or any Authorization Letter.  In the   event of filing a petition for relief under the Code, Supplier shall assume or reject the   Agreement within ****.   5.6   Catalog Apps          5.6.1 Additional License Terms          5.6.1.1 Supplier hereby grants to Verizon and its Affiliates and to its and their                employees, agents and contractors,  a non-exclusive license to: (i) copy,               reproduce, display, submit for approval and perform all Apps on the               applicable App Store Catalog, in object code format only; and (ii) exploit,               use, distribute, transmit, and sublicense for download an unlimited               number of copies of all such Apps to Subscribers, in object code format               only, such that Subscribers may access and use the corresponding Data               Service in accordance with the Agreement or an Authorization Letter.          5.6.1.2 With respect to each Apps submitted to the applicable App Store Catalog,               the foregoing license shall commence on the date the App is submitted to               the applicable App Store Catalog and will terminate on the earlier of (a)               the date the App is removed from the applicable App Store Catalog, or (b)               the date of termination of the applicable Authorization Letter. No such               removal or termination will terminate a Subscriber’s rights or licenses to               continue to use those Apps that were downloaded by the Subscriber prior               to such removal or termination. All rights not granted in this Agreement               are hereby reserved by Supplier.          5.6.2 Developer          5.6.2.1 For each App, Supplier agrees and Verizon acknowledges that, unless              otherwise required by the applicable App Store Owner or agreed between              the Parties, for all purposes in connection with the submission of Apps to              the applicable App Store Catalog, Supplier shall be the developer of the              Apps and shall be bound by, and shall comply with, all applicable terms of              the applicable App Store Developer Agreement (and any related              submission policies made known to Supplier by the App Store Owner).          5.6.2.2 Removal by Supplier                  Notwithstanding anything to the contrary contained in the App Store               Developer Agreement, which may provide Supplier the ability to request               the removal of any Apps from the App Store Catalog ,Supplier shall not,               without Verizon’s prior written consent, request that Apps be removed               from the App Store Catalog. Upon such consent and removal, Supplier               acknowledges and agrees that such removal will terminate the applicable               Authorization Letter with respect to such App, and that the removal of any               Catalog App from the App Store Catalog will not terminate a Subscriber’s               rights or licenses to continue to use such App if the App was downloaded              by the Subscriber prior to removal.  The foregoing shall not limit the ability              of Supplier to replace or update an App for a given Wireless Device (eg:              provide an update App to correct an Error).                                                                            11   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                   5.6.2.3 Removal by Verizon.                  Verizon may at any time, at its sole discretion and for any reason, remove               any App that is exclusively used for Verizon and provided under this               Agreement from an App Store catalog and upon doing so will provide               notice to Supplier. The removal of any App from the App Store Catalog               will not terminate a Subscriber’s rights or licenses to continue to use such               App if the App was downloaded by the Subscriber prior to removal.            5.6.2.4 Direct Pay.                Except as expressly set forth in an Authorization Letter, the parties agree               that all payments to Supplier for the download and/or use of Supplier’s               Apps shall come directly from Verizon and Supplier shall not be paid by              an App Store Owner for any Apps downloaded from the App Store              Catalog by Subscribers.  The fees payable by Verizon to Supplier as set              forth herein shall be in lieu of any and all amounts that would otherwise              have been payable to Supplier by Qualcomm or Verizon under the               Qualcomm App Store Developer Agreement.           5.6.2.5 Qualcomm - Establishing the DAP.                  For each Apps that Supplier makes available on the Qualcomm App               Store Catalog, Supplier must submit a pricing template(s), indicating the               agreed upon Developer Application Price (DAP) for such Catalog App in               accordance with the BREW Developer Agreement (the App Store               Developer Agreement applicable to Qualcomm BREW applications).               Supplier and Verizon may choose from time to time to discuss and               negotiate a DAP for one or more such Qualcomm BREW Catalog Apps. If               Supplier and Verizon negotiate a DAP for one or more such Qualcomm               BREW Catalog Apps, Supplier must still submit a pricing template(s) for               the Qualcomm BREW Catalog App(s) in accordance with the BREW               Developer Agreement.    5.7   Limited License to Supplier APIs         5.7.1 (a)  In addition to the license rights to the Software granted to Verizon              hereunder, Supplier hereby grants to Verizon, subject to the terms and              conditions of this Agreement, including payment of the fees as set forth              therein or in an applicable SOW, if any, a perpetual, non-exclusive,              limited right to use and sublicense Supplier’s Solution API (as defined              below) to those manufacturers of devices supported by the Solution and              developers of software applications that reside and operate on devices              supported by the associated Supplier Platform (each, a “Device               Application Developer”) solely to enable the App to interface and              interoperate with the associated Supplier Platform and access and use              the functionality of such Supplier Platform licensed from Supplier by              Verizon solely for the benefit of Verizon’s Subscribers.  Such right              includes the right for Device Application Developers to incorporate the              Solution API into an interface of the Device Application and to support              and maintain such interface subject to the limitations above.                                                                           12   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                       (b) In addition, upon termination of this Agreement or the applicable             Authorization Letter (other than for cause by Supplier), provided that such             termination is not due to Verizon’s breach of this Agreement, and Verizon             has paid all fees due, including termination charges due, such license to             the Solution API shall be extended to grant to Verizon the right to use and             sublicense the Solution API to Device Application Developers solely to             incorporate the Solution API into an interface of the Device Applications             and support and maintain such interface with any service offering similar             functionality to the associated Supplier Platform (and not solely to             interface with the associated Supplier Platform) solely for the benefit of             Verizon’s Subscribers (including those Subscribers using the service             offering similar functionality to the associated Supplier Platform             referenced in this sentence). In all cases, Verizon shall inform Supplier in             writing of any Device Application Developer to which Verizon Wireless             has provided the Solution API.  Verizon shall be liable for any breach by a             Device Application Developer of any of the covenants and obligations of             Verizon hereunder.          5.7.2 During the Term or Renewal Term, Verizon may provide written notice to             Supplier that it wishes to use and sublicense the Solution API set forth in             subsection 5.7.1 to Device Application Developers to incorporate the              Solution API into an interface of the Device Applications and support and              maintain such interface with any service offering similar functionality to              the associated Supplier Platform (and not solely to interface with the              Supplier Platform) solely for the benefit of Verizon Subscribers because              (A) Supplier has been subject to credits for failure to meet any one              service level set forth in an applicable Service Level Agreement for three              (3) consecutive months where each such failure is subjected to a credit of              at least $**** or (B) Supplier’s Platform (or non-Platform Software              supporting a Data Service) is not within Industry-Standards (solely from a              technology basis including without limitation features and functionality) in              some or all material respects and there is another service offering which              Verizon wishes to use and that Verizon in good faith determines such              service offering to address the “Industry Standards” issues identified in              the affected Platform (or non-Platform Software supporting a Data              Service).  If such notice is pursuant to subsection (B) and Supplier fails to              meet such “Industry Standards” in all material respects within a              reasonable period after the receipt of such notice but no later than the              production release date of the next feature release of the Platform (or              non-Platform Software supporting a Data Service) that will reasonably              accommodate any industry standard issues that may arise or which the              content of such feature release has not yet been finalized, then such              license shall be so extended as set forth herein.  For the avoidance of              doubt, in the event of the extension of the license to the Solution API as              described above, this shall not release Verizon of any of its other              obligations under this Agreement, including but not limited any payment              obligations and Supplier has the right to immediately rescind such license              in the event of any uncured material breach by Verizon under this              Agreement. In the event that Verizon does not give notice of its exercise             of the right hereunder to Supplier within **** of the trigger of such                                                                         13  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                         right, Verizon shall have been deemed to waive such right with respect to               such triggering event.         5.7.3 Verizon shall enter into an agreement with each Device Application              Developer whereby such Device Application Developer (i) agrees to keep              the Solution API and any Supplier information confidential, and (ii)              disclaims all liability of Supplier with respect to the Solution API.          5.7.4 Supplier shall have no obligation to provide any maintenance or technical              or product support to any Device Application Developer in the event of              Section 5.7.1(b) or 5.7.2 above.  Any such support provided to Verizon on              behalf of a Device Application Developer or to any Device Application              Developer shall be subject to additional professional service charges from              Supplier as agreed upon in a Change Order. Neither Verizon nor any              Device Application Developer shall have any ownership right to the              Solution API.         5.7.5 Definitions.  As used herein:                 5.7.5.1 “Solution API” means the application programming interfaces                    ("API") to the Supplier Software or Platform and related                    documentation.                5.7.5.2 “Device Application” means a Verizon or Device Application                    Developer product or software application intended for installation                    and use on a device (such as tablet or smart phone) that                    incorporates the Solution API therein, which is designed for, and                    usable, in strict accordance within the terms of this Agreement.                      The Device Application is distributed to the Subscriber of the                    applicable device.      6.    OVERALL PERFORMANCE REQUIREMENT          Supplier represents, warrants and agrees that it has the responsibility, duty and         obligation to provide, perform, and deliver, to the extent set forth herein, the          Services and/or Software described in any Authorization Letter(s) pursuant to this         Agreement and Supplier further agrees and acknowledges:    6.1   that it recognizes that the Software and Services which are to be provided under         this Agreement must be delivered in  compliance with the scheduled dates and        requirements set forth in the Authorization Letter(s) and perform in  compliance        with the Specifications; and   6.2   that Supplier has and will maintain an organization staffed by qualified personnel,        including “key personnel,” with the knowledge, skill and resources to perform and        complete the work and that there are and will be no  commitments, legal,        contractual or otherwise that are in conflict with Supplier’s obligations under this        Agreement and applicable Authorization Letter.                                                                           14   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                             7.    HOSTING     7.1  Upon acceptance of an Authorization Letter which includes Hosting Services,        Supplier shall provide, install, maintain and support a Platform, including all        necessary hardware, software, and services for the deployment, integration (to        the extent indicated in an Authorization Letter), maintenance and management of        the Platform or Software as described in the applicable Authorization Letter and         shall provide such Hosting Service to Verizon in compliance with the Security         Requirements set forth in Exhibit C hereto (as may be modified or supplemented        in an Authorization Letter) and the applicable Authorization Letter, including all        attachments thereto.   7.2   In the event Verizon elects to terminate the Hosting Service only (such date of        termination, the “Hosting Termination Date”), and either internally provide and        operate through its own equipment and facilities, or provide and operate through        the equipment and facilities of its third party vendor, all or any part of such        Hosting Service. In the event  Verizon elects to terminate the Hosting Services as         described above (or the Agreement or applicable SOW terminates or expires for         any reason) and subject to payment by Verizon of any applicable fees for early         termination of Hosting Services as set forth in an Authorization Letter:          7.2.1 Supplier shall provide Verizon, or its third party vendor, reasonable              assistance in completing the transition to the internal operation of the              Hosting Services by Verizon; and         7.2.2 Supplier or its successors in interest shall furnish to Verizon or its              designee that is not a competitor of Supplier, the following documentation              and information related to Hosting Services:  (1) documentation regarding              system, database and storage administration; (2) features and technical              specifications for the hosting environment; (3) detailed equipment and              software configurations for servers, storage, communications and other              systems supporting the Hosting Services; (4) installation and testing              procedures; (5) operations and provisioning procedures; (6) maintenance              procedures and diagnostics; and (7) such other documentation the parties              agree is reasonably necessary to support the Hosting Services. Verizon              or its designee shall use such information and documentation solely to              the extent necessary to support the Hosting Services.  Such information              and documentation shall be provided pursuant to a mutually agreeable              statement of work, which shall set forth the specific tasks to be              undertaken by Supplier in connection with such transition, the fees to be              paid by Verizon therefor, and the time period for completing such              transition; and         7.2.3 Verizon shall have the option, to purchase from Supplier such equipment              elements used by Supplier to provide the Hosting Service, to the extent              they are (i) owned by Supplier and no third party limitation or restriction              prohibits such purchase, (ii) dedicated to the Hosting Services and not              shared or used by any other customer of Supplier and (iii) reasonably              necessary or appropriate to provide the Hosting Services internally or              through the facilities of its third party vendor; and                                                                          15   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                   7.2.4 The rights and obligations of the Parties under the provisions of this              Section 7.2, and solely to the extent that they relate to the Hosting              Service all other terms, Exhibits and addenda, shall terminate effective as              of the Hosting Termination Date, provided that any obligation on the part              of Verizon including the obligation to pay any Fees, in respect of the              Hosting Service for periods prior to the Hosting Termination Date, and              any applicable early termination charges as set forth in the Authorization              Letter, shall survive the Hosting Termination Date.  In addition, the              respective obligations of the Parties relating to the Hosting Service that by              their nature would continue beyond the Hosting Termination Date,              including but not limited to the obligations to indemnify, maintain              confidentiality, maintain records and permit audits, shall survive the              Hosting Termination Date with respect to the Hosting Service.   8.    DEVELOPMENT SERVICES    8.1  Custom Software Development/Paid Work Product              Supplier will design, develop, document, test and deliver the Custom Software or         Paid Work Product identified in an Authorization Letter in accordance with the         Service Requirements, Milestones and other terms of that Authorization Letter.          Supplier shall comply with Verizon’s reasonable requests for changes to the         Service Requirements that do not, either individually or in the aggregate, require         more time, cost or effort from Supplier.     8.2  Background Materials              Supplier will not include any Background Materials in the Custom Software or         Paid Work Product without Verizon’s prior written consent (an express         identification of such Background Materials within the applicable Authorization         Letter shall be acceptable as Verizon’s consent for such purpose). For all         Background Material used or included in Custom Software or Paid Work Product,         Supplier grants to Verizon a royalty free, non-exclusive transferable,         sublicensable irrevocable worldwide license to Use such Background Material         except as set forth in an Authorization Letter.  As used herein, to Use the         Background Material means to use, display, perform, modify, enhance,         reproduce and make derivative works for any purpose.      8.3  Status of Information                    Supplier shall allow personnel of Verizon to visit Supplier’s place of business at         reasonable times to discuss and inspect the status of the development of the         Custom Software or Paid Work Product upon prior written notice and provided         such visit does not adversely affect or interfere with such development.  In         addition, appropriate personnel of the Parties will meet at least weekly during the         course of development to review the status of the development of the Custom         Software or Paid Work Product.                                                                              16   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                             8.4  Documentation                    Documentation for Custom Software shall be provided in a machine-readable         format unless another format is agreed to by Verizon.  Documentation shall         comply with commonly accepted industry standards with respect to content, size,         legibility and reproducibility, and shall include without limitation the following, as         applicable:  (i) administration; (ii) features and technical specifications; (iii)         detailed engineering and circuit design; (iv) installation and testing criteria; (v)         operations, provisioning and translations; (vi) maintenance and diagnostics; and         (vii) other documentation deemed necessary by the parties to support the         installation, acceptance testing, administration, maintenance, engineering and         operation of the Custom Software, and the full exercise of the ownership rights, if         any, herein acquired by Verizon.    9.    SECURITY    9.1   Supplier shall put in place and shall maintain physical and electronic measures         and operational procedures to protect the security of each Platform, and         Software in compliance with the security requirements as set forth in Exhibit C         hereto as such may be supplemented or modified in the applicable Authorization        Letter.   9.2   Verizon, at its sole cost, may conduct reasonable Security Audits of a Platform or        Software and related facilities of Supplier used in connection with Supplier’s        performance of any Services (a “Security Audit”). Such Security Audit shall be        performed by Verizon itself or on its behalf by a reputable security audit company        selected by Verizon at mutually agreed upon times upon reasonable notice and        subject to such company agreeing in writing with Verizon to the protection of any        Supplier confidential information and provided that such Security Audit does not        adversely impact Supplier or any services provided by Supplier to any other        customer.   9.3   Each Party shall be entitled to receive a copy of any initial or final written report        or recommendations resulting from any Security Audit and, unless Supplier        disputes such recommendation on the grounds its implementation would not be        in accordance with industry standards applicable to providers of service or        software comparable to the Services and Software, Supplier shall promptly        implement such recommendations.     10.   ADDITIONAL REQUIREMENTS    10.1  Service Level Agreement             Supplier shall comply with all terms of the Service Level Agreement attached to         the applicable Authorization Letter.            10.2  Disaster Recovery            10.2.1 Supplier’s Disaster Recovery Plan is attached hereto as Exhibit D.                Supplier shall exercise such plan on no less than an annual basis.                                                                           17   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                 10.2.2 Supplier shall update the Disaster Recovery Plan as reasonably              necessary during the Term to include a list of all hardware, software and              communications facilities and services used by Supplier to provide the              Hosting Service.  Verizon shall have the right to reasonably audit              Supplier’s compliance at reasonable times as Verizon deems necessary              provided such audit does not adversely impact Supplier or any services              provided by Supplier to any other customer.  Verizon’s review of any              changes to the Disaster Recovery Plan shall not in any way alter or waive              any of Suppliers duties, obligations, representations or warranties under              this Agreement.   10.3  Training            Upon request from Verizon, Supplier shall provide training outlined in the        applicable Authorization Letter upon the terms set forth in such applicable        Authorization Letter.  Verizon shall have the right to duplicate or reproduce        (including any markings as to confidentiality and copyrights), for internal usage        only, any of the training materials at no additional cost.           10.4  Branding            Unless otherwise stated in the applicable Authorization Letter, nothing in this        Agreement shall be construed to limit or restrict Verizon’s rights to market and        have marketed a Data Service or Software as Verizon determines, using Verizon       own Trademarks or the Trademarks of one or more Indirect Channel Entities;       provided Verizon does not remove any applicable copyrights.         10.5  International Roaming Access           All Software and Services are intended to be used to enable Verizon to provide        the Data Service to Subscribers who are customers purchasing Verizon Services        in the United States.  However, Supplier acknowledges and agrees that Verizon        may, in its sole discretion, enable Subscribers to access and use a Data Service        using Wireless Devices while roaming outside the United States pursuant to        international data roaming agreements that Verizon may enter into with other        wireless carriers.    11.   FEES/PAYMENT   11.1  Pricing           During the Term of this Agreement, Verizon shall pay Supplier for Service and/or        Software in accordance with each applicable Authorization Letter.  All payments        are due in U.S. Dollars. All charges to Verizon for Services or Software are as set        forth in each applicable Authorization Letter or, for modifications to a Service or       Software, in a Change Request.                              11.2  Improvements                Supplier and Verizon shall continue to identify areas for Supplier’s continuous        improvement in cost, quality and service over the term of the Agreement.                                                                        18  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 Supplier shall afford Verizon the ability to realize the benefit of such        improvements, including price reductions to the extent the Parties mutually agree       in a Change Request.  Furthermore, a list of continuous improvement initiatives       shall be created by the Parties.  Unless otherwise set forth in this Agreement,       Supplier and Verizon will meet, upon Verizon’s reasonable request, to assess       opportunities to implement potential continuous improvement initiatives, such       initiatives to be mutually agreed to by the parties in a Change Request.    11.3  Invoices          Unless otherwise specified in an Authorization Letter , Supplier shall render       invoices following the date of initial Acceptance  as set forth in Section 14;       provided, however, where payment is not expressly contingent on Acceptance or       where payment is on a per-subscriber basis, no Acceptance shall be required.        Invoices for charges specified in an Authorization Letter shall be submitted by       Supplier to the address specified in the Authorization Letter.  Invoices shall       include, as appropriate, without limitation (i) Authorization Letter number; (ii)       description of Software and Services provided; (iii) ship-to name and address;       (iv) delivery method (i.e., electronic or physical); (v) date of delivery (vi) quantity       shipped and billed or quantity of service units performed and billed; (vii)       maintenance service details; (viii) net unit cost; (ix) discounts applied; (x) net       invoice amount; (xi) contract information for invoice disputes; and such other       details as Verizon may  reasonably request.    11.4  Payment Terms            Verizon shall remit payment to Supplier within **** of Verizon’s receipt of       Supplier's undisputed invoice, unless otherwise set forth in the applicable       Authorization Letter; provided, however, if Verizon disputes any charge shown on       a Supplier invoice, Verizon shall notify Supplier in writing of such dispute, and       shall pay when due, any undisputed amounts. Supplier will provide Verizon with       notice of any nonpayment if any.  Upon request, Verizon will provide reasonable       support for such dispute.         11.5  Electronic Payments                At Verizon’s option Supplier will do the following:  Verizon may, at no additional        cost to Verizon, require Supplier to accept purchase orders and submit invoices        via Verizon’s electronic payment system; provided that Supplier is not charged       for the use or access of such system.  Any terms or conditions associated with       the use of the electronic payment system shall be negotiated directly between       the Supplier and the electronic payment system provider.  Transactions under       this Agreement using the electronic payment system shall be governed by the       terms and conditions of this Agreement.           11.6  Right of Set Off          Verizon shall be entitled to set off any amount Supplier owes Verizon against        amounts payable under this or any other Agreement. Payment by Verizon shall        not result in a waiver of any of its rights under this Agreement.  Verizon shall not       be obligated to pay Supplier for Services that are not fully and properly invoiced.                                                                        19  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                             11.7  Charges to Subscribers.                   Supplier acknowledges and agrees that the fees charged by Verizon to         Subscribers for their use of the Data Service or Verizon Network needed to         download the Software required for a Data Service, as well as the fees charged         Subscribers for downloading the Software, will be determined by Verizon in its         sole discretion.  Supplier also acknowledges and agrees that Verizon alone will         be responsible for billing Subscribers, as well as for all associated collection         activity, for such fees.    12.   RECORDS AND REPORTS   12.1  Supplier shall allow Verizon and its authorized agents and representatives to audit        Supplier’s records (in whatever form kept) to verify Supplier’s compliance with all        provisions of this Agreement provided such agents and representatives agree with        Verizon to keep any such information confidential.  At Verizon’s request, the auditor        shall have access to Supplier’s records at reasonable times during the Term and        during periods in which Supplier is required to maintain records with not less than         ten (10) days prior written notice to Supplier and provided that the timing of such        audit does not adversely affect Supplier or its personnel.  Supplier shall maintain        complete records of all charges payable by Verizon under the terms of this        Agreement for the later of three (3) years after termination of the Agreement and        any additional period of applicability of the Agreement to an Authorization Letter        placed prior to termination.  Such records shall specifically include, but are not        limited to, timesheets.  All such records shall be maintained in accordance with        recognized accounting practices.   The correctness of Supplier's billing shall be        evaluated by such audits.  Unless such results are reasonably disputed by Supplier        in accordance with Section 39, prompt adjustments shall be made to compensate        for any errors or omissions disclosed by such review or examination.  If such review        or examination determines that Verizon has made an overpayment in excess of        seven and one-half percent (7.5%) of the amount properly due, then Supplier shall        reimburse Verizon for the entire reasonable cost and expense of such review and        examination. From time to time, Verizon may request Supplier to provide an        Export Control Classification Number (ECCN) for products, software, reports,        technology or technical data licensed, purchased or available for license or        purchase under this Agreement to the extent applicable.  Supplier agrees to        promptly, and without additional cost to Verizon, comply with any such requests.             12.2  If Supplier is itself a Certified Minority, Woman, Service Disabled Veteran and        Person with Disability Owned and Controlled Business Enterprises (MWDVBE), as        defined herein, Supplier shall retain its MWDVBE certification through the term of        this Agreement.  If there is a change in Supplier’s certification status, Supplier shall        notify Verizon, in writing, within five (5) business days of the date of such change. If        the Supplier is not itself a Certified Minority, Woman, Service Disabled Veteran         and Person with Disability Owned and Controlled Business Enterprises         (MWDVBE), then with respect to the Supplier's compliance (as the Primary         Supplier) with Minority, Woman, Service Disabled Veteran and Person with         Disability-Owned Business Enterprises (MWDVBE) Utilization, Supplier agrees to         maintain a plan to provide opportunities for Certified MWDVBE suppliers and use                                                                            20   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                   commercially reasonable efforts, to the extent consistent with the terms, pricing         and requirements of any SOW under this Agreement to meet the requirements        set forth in Exhibit E, Compliance with Certified Minority, Woman, Service-       Disabled Veteran and Person with Disability-Owned and Controlled Business        Enterprises (MWDVBE) Utilization. For purposes of this Section, the definitions         set forth in Exhibit E shall apply. For the avoidance of doubt, failure to meet the        requirements set forth in Exhibit E shall not be deemed a breach of this        Agreement, so long as commercially reasonable efforts were made.    13.   DELIVERY    13.1  Supplier shall make Services and Software available to Verizon no later than the        date mutually agreed to in the applicable Authorization Letter (the “Delivery        Dates”); provided that if Supplier misses a Delivery Date due to the failure of         Verizon or its agents, representatives or contractors to reasonably meet express         dependencies contained in an applicable Authorization Letter, the parties will         discuss whether such Delivery Date shall be extended accordingly; provided,         however, in each case, Supplier shall have no liability for such delay in the event         such Delivery Date is missed due to such Verizon failure.  Notwithstanding such         Delivery Dates, Verizon shall have the right to determine the Commercial Service         Date for a Data Service in its sole discretion.     13.2  Packaging           Software (where delivery in other than electronic format is specified in an         Authorization Letter) shall be packaged for shipment, at no additional charge, in         commercially suitable containers, consistent with all applicable laws that provide         protection against damage during the shipment, handling and storage of the         Software as specified in an Authorization Letter.   13.3  Risk of Loss           Supplier shall bear the risk of loss of or damage to the Software until receipt of         such Software specified in an Authorization Letter.  Supplier shall promptly        replace such Software when media on which it is shipped is lost or damaged at        no additional charge.   14.   TESTING, EVALUATION AND APPROVAL     14.1  Acceptance              14.1.1 All Software and Services shall be subject to inspection and Acceptance               by Verizon after delivery of the Software and/or Services to determine               conformity with this Agreement, the applicable Authorization Letter and               Service Requirements, as applicable, and any applicable criteria for               Acceptance.  If delivery of Software will be made in a series of               deliverables based on Milestones, then each such deliverable shall be               inspected and Accepted individually, and the procedures, obligations and               other terms of this Section shall apply to each deliverable.  Inspection or               failure to inspect on any occasion shall not affect Verizon’s rights under               the warranty provisions of this Agreement or any other rights or remedies               available to Verizon.  Verizon’s right to inspect and test does not relieve                                                                         21   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                       Supplier from its testing, inspection and quality control obligations. Unless              an alternative Acceptance mechanism or deemed Acceptance procedure              is specified in an Authorization Letter and except as provided under              Section 14.1.5, Statement of Work or elsewhere in this Agreement,              Software and Services shall not be deemed Accepted unless such              Acceptance is in writing.          14.1.2 Except as set forth in an Authorization Letter, Verizon shall have a period              of **** following delivery of the Software and/or Service within which to              test the Software and/or Service for conformity with this Agreement, the              applicable Authorization Letter and Verizon Service Requirements, as             applicable, and any applicable criteria for Acceptance.  If the Software             and/or Service fails to so conform, Verizon may, provide written notice             (email shall be acceptable for this purpose) to Supplier rejecting such             Software and/or Service. Following such notification, Supplier shall use             commercial reasonable efforts, within ****, at Supplier's risk and expense,             to correct all deficiencies by repairing or replacing any non-conforming             Software. If, after the cure period, the Software and/or Service still fails to             perform in accordance with the applicable criteria for Acceptance and             Supplier is not able to correct such deficiency, it shall require that Verizon             return the impacted Software and/or Service to Supplier at Supplier’s             expense.          14.1.3 If such Software and/or Service is rejected above, any one-time amounts             paid to Supplier by Verizon specifically for the impacted Software release             and/or Service milestone shall be refunded to Verizon within **** after             return of the impacted Software and/or Service; provided, however, in no             event shall this provision apply to a refund of any transaction fees related             to the Platform.  The purchase price for such Software and/or Service             also shall be credited against any future volume commitments or applied             for evaluation of attainment of volume discounts under this Agreement             applicable to such Software and/or Service.         14.1.4 Verizon has the right to subject the initial release of the Software and/or             Service, and each subsequent Software  release containing new             functionality or enhancements intended for commercial production, to an             operational soak period as part of the Acceptance testing.  Soak period             means using the Software and/or Service in a productive operation mode             for ****.  If the Software and/or Service does not perform according to the             Service Requirements during the soak period, Supplier, at no additional             charge, shall provide technical support personnel, to perform tuning             services in order to meet the Service Requirements.  If such tuning efforts             are unsuccessful (i.e., the Software or Service will not perform to Service             Requirements) after a reasonable period of time, in addition to its other             remedies at law, equity or under this Agreement, (i) Verizon may return             the Software release  which was subjected to the soak period, and             Supplier shall refund all monies paid for the applicable Software or             Service release that was subjected to the soak period (provided,             however, in no event shall this provision apply to a refund of any             transaction fees related to the Platform) or (ii) Verizon, retaining all rights             and remedies including those under (i), may extend the soak period                                                                         22  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                         and tuning-related services until such time as Verizon agrees is required              for the Software and/or Service, as the case may be, to meet the Service              Requirements.         14.1.5 If the Software and/or Service successfully passes Acceptance testing              (including the operational soak period) Verizon shall timely issue its               written notice that the Software and/or Service has successfully               completed such test procedures and Acceptance; provided, however if no               notice is provided by Verizon within the applicable period, such Software               and/or Service shall be deemed accepted.    14.2  Nonconformance After Commercial Service Date              After Commercial Service Date and Acceptance, if a Service or Software does         not conform to the Service Requirements, Verizon shall be entitled to the         remedies set forth in the applicable Service Level Agreement.   15.   REPRESENTATIONS AND WARRANTIES         Supplier represents and warrants that:     15.1  In performing Services and providing Software, Supplier will comply with the        descriptions and representations which appear herein and in the applicable        Service Requirements which shall include, with respect to any Apps, the App        Store Developer Agreement applicable with respect to such App.  Without limiting        the preceding sentence, or the applicable Service Level Agreement, Supplier        agrees to disclose and report all Unscheduled Outages, as defined in the        applicable Service Level Agreement, in accordance with such Service Level        Agreement and acknowledges that its failure to do so may degrade service that        Verizon may be obligated to provide Subscribers, may cause adverse publicity        regarding the Verizon Service, or jeopardize the security of the Verizon Network.   15.2  Its employees will perform Services in accordance with all applicable laws,        codes, ordinances, orders, rules and regulations of local, state, and federal        governments and agencies and instrumentalities, including, but not limited to,        applicable wage and hour, economic and trade sanctions, bribery of foreign        officials, safety and environmental laws, and all applicable standards and        regulations of appropriate regulatory commissions and similar agencies.   15.3  All Services and Software furnished by Supplier shall be performed and provided        (i) in a diligent, efficient and skillful manner, and (ii) in accordance with industry        standards in the field.     15.4  All Software and Custom Software furnished by Supplier shall be free of Errors        for a period of **** (or such greater period referenced in an Authorization Letter)        following Acceptance of such Software or Custom Software.  If within **** (or        such aforementioned greater period) from the Acceptance of Software and/or        Custom  Software any Error exists or arises, then, in each such case, upon        receipt of written notice of such Error from Verizon, Supplier will use commercial        reasonable efforts to repair or remedy such Error at Supplier's sole cost and        expense                                                                        23   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                             15.5  Supplier, including its employees, agents and contractors, has obtained and will         maintain for the Term of this Agreement, any Permits (as such term is defined in         Section 30) reasonably necessary for the performance of Services.    15.6  Supplier owns the Software and Background Materials (other than third party         components of the Software) and has the right to license the same to Verizon         under the terms of this Agreement.  As to Software and Background Materials to         which Supplier does not have title, Supplier represents and warrants that it has         rights in the Software and Background Materials sufficient to permit the license of         the Software to Verizon and that Software has full right, power and authority to         license the Software and Background Materials and other rights granted         hereunder to Verizon.   15.7   Services and Software provided or performed by Supplier under this Agreement         do not and will not give rise to or result in any infringement or misappropriation of         any third party patent, copyright, trade secret, or any violation of any other         intellectual property right of any third party.    15.8  Forward and Backward Compatibility            Except as set forth in an Authorization Letter, Supplier represents and warrants         that, for a period of **** following the commercial release of any new supported        Wireless Device (such timeframe with respect to each release, the “Rolling        Window”), new versions of Software other than Custom Software with respect to        which Verizon has waived in writing Supplier’s obligations under this Section 15.8        (Verizon acknowledges that execution of an SOW that expressly excludes        support for Custom Software shall be deemed such waiver and Custom Software        may require additional fees to maintain compatibility as provided in an applicable        Authorization Letter), shall be forward and backward compatible, contain         materially similar functionality to and be substantially compatible with such        Wireless Device and their operating environment(s).  If set forth in an         Authorization Letter, new versions of Software, that do not otherwise compromise         or break the functionality of the Software on Wireless Devices released prior to         the Rolling Window, are not required to incorporate all new incremental feature         enhancements contained in such new Software release.  The Rolling Window         shall apply to any Wireless Device commercially released after **** and         supported by the Platform.  In the event Supplier deploys a server side Software         change that causes Supplier to breach the above warranty in this Section 15.8         with respect to Wireless Device client Software, Supplier shall upgrade the         Software used on the affected Wireless Device at no additional fee, provided         Verizon is current on its Maintenance payments.            15.9  No Viruses            15.9.1 Supplier represents and warrants to Verizon that Software does not               contain or will not contain any Self-Help Code or any Unauthorized Code.               Supplier shall remove promptly any such Self-Help Code or Unauthorized               Code in the Software of which it is notified or may discover.           15.9.2 Supplier also represents and warrants that there are no copy protections               or similar mechanisms within the Software, which will, either now or in the                                                                                  24   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                       future, interfere with the grants made in this Agreement.  Furthermore,              Supplier represents and warrants that unless otherwise noted in the              applicable Documentation or (a) requested in writing by Verizon and              Verizon approves Supplier’s response, or (b) Supplier advises Verizon in              writing that it is necessary to perform valid duties under this Agreement              and authorized in writing by Verizon, Software shall not:  (i) contain              hidden malicious files; (ii) replicate, transmit or activate itself without              control of an authorized person operating computer equipment on which it              resides; (iii) alter, damage or erase any data or computer programs              without control of an authorized person operating the computer              equipment on which it resides; and (iv) contain no encrypted imbedded              key, node lock, time out or other function, whether implemented by              electronic, mechanical or other means, which restricts or may restrict Use              or access to any programs or data developed under this Agreement,              based on residency on a specific hardware configuration, frequency or              duration of Use, or other limiting criteria (collectively “Illicit Code”).               Should any Software be found by Verizon or Supplier to contain Illicit              Code, Supplier shall immediately commence the removal, at Supplier’s              sole cost, of such Illicit Code.  Notwithstanding anything elsewhere in this              Agreement to the contrary, In the event that Verizon or any Subscriber              has been damaged in any material respect by the access or use of such              Illicit Code, or if Supplier activates such Illicit Code at any time, Supplier              shall be in default of this Agreement, and no cure period shall apply.  It is              agreed that a breach of the above representation and warranty may              cause irreparable harm and injury and Verizon shall be entitled, in              addition to any other rights and remedies it may have at law or in equity,              to seek an injunction enjoining and restraining Supplier from doing or              continuing to do any such act and any other violations or threatened              violations of the Agreement.  In addition to any other remedies available              to it under this Agreement, Verizon reserves the right to pursue any civil              and/or criminal penalties available to it against the Supplier.   15.10 Offshore Restrictions          15.10.1 Except with Verizon’s advance written consent, in no event shall               Confidential Information regarding or pertaining to Verizon’s systems,               infrastructure, employees, or customers be stored, transmitted, or               accessed at, in,  through or from a site located outside the United               States nor made available to any person who is located outside the               United States unless such Confidential Information relates solely,               directly and independently (i) to Verizon employees or customers               located outside of the United States, or (ii) to voice or data               communications of Verizon or its customers that originate and terminate               outside the United States, or (iii) to Verizon systems and/or               infrastructure dedicated to the provision of Verizon’s voice or data               services outside the United States or, (iv) to be otherwise necessary for               storage or access outside the United States in connection with security,               back-up, disaster recovery, or related purposes as required by Verizon               services specifications, security and/or technical requirements.  This               subsection shall not apply to Verizon Wireless Customer Data which               shall be solely governed by the provisions of Subsection 15.10.3.                                                                         25  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                   15.10.2 Exceptions to 15.10.1 above will be granted, in Verizon’s sole                discretion, (i) in writing; (ii) on a project-specific or statement-of-work-               specific basis; (iii) following a review of the particular project or                statement of work in accordance with the policies of the relevant                Verizon business unit governing the placement of work with resources                located outside the United States; (iv) subject to any conditions imposed                by Verizon on the access to systems or data by such resources as a                result of such review; and (v) in advance of the commencement of any                work by such resources on the relevant project or statement of work.          15.10.3 Notwithstanding subsection 15.10.1and 15.10.2 above, unless Supplier                secures Verizon Wireless’ further, prior written consent, in no event (i)                shall Supplier provide, direct, control, supervise, or manage any voice                or data communication of Verizon Wireless customers that occurs                between United States locations (or the United States portion of any                international communication that may originate or terminate within the                United States) from a location outside of the United States, nor (ii) shall                Verizon Wireless Customer Data be stored, transmitted, or accessed by                Supplier, from, at, in, or through a site located outside the United Stated                without Verizon Wireless’ prior written consent. “Verizon Wireless                Customer Data” shall include (a) any subscriber information, including,                without limitation, name, address, telephone phone number or other                personal information of the Verizon Wireless subscriber; (b) any call-               associated data, including without limitation, the telephone number,                internet address or other similar identifying designator associated with a                communication; (c) any billing records; (d) the time, date, size, duration                of a communication or physical location of equipment used in                connection with a communication; or (e) the content of any Verizon                Wireless customer communication. This section is not intended to limit                Subscriber’s access to Data Services from outside of the United States                as permitted pursuant to Section 10.5, and Supplier shall not be in                breach of this Section due to such permitted international roaming by                Subscribers.           15.10.4 Nothing in this Section is intended to nor shall it operate in derogation of                any requirement imposed on Verizon by a governmental body or                agency outside the United States.   15.11 Supplier shall remove from the project, at Verizon’s request, any person        furnished by Supplier who, in Verizon’s reasonable opinion, is incapable,        uncooperative or otherwise unacceptable in the execution of the services to be        provided under this Agreement; provided compliance with such request does not        violate any law or regulation.   15.12 Warranty Disclaimer.         EXCEPT    FOR THOSE WARRANTIES EXPRESSLY          STATED   IN THE        AGREEMENT OR APPLICABLE AUTHORIZATION LETTER,            SUPPLIER        HEREBY DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS OR        IMPLIED, ORAL OR WRITTEN, WITH RESPECT TO THE PLATFORM,        SOFTWARE    AND SERVICES INCLUDING, WITHOUT LIMITATION, ALL                                                                         26   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                   IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT, QUIET         ENJOYMENT, ACCURACY, INTEGRATION, MERCHANTABILITY OR FITNESS         FOR ANY PARTICULAR PURPOSE AND ALL WARRANTIES ARISING FROM         ANY COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF         TRADE.  16.   ESCROW     16.1  Maintenance of Escrow Agreement.              Promptly after the Effective Date, Supplier shall enter into an Escrow Agreement         with an escrow agent approved by Verizon in writing (the “Escrow Agent”) to         secure Verizon’s rights hereunder and to be effective as of the Effective Date         (the “Escrow Agreement”), such Escrow Agreement to be approved by         Verizon.  The Escrow Agreement shall be an agreement separate from, but         supplemental to, this Agreement.  Such Escrow Agreement shall be established         and maintained for the benefit of Verizon and its Affiliates, and should such         Escrow Agreement terminate or otherwise expire during the Term, the Parties         shall immediately enter into a new Escrow Agreement with an independent         escrow agent mutually satisfactory to Supplier and Verizon in accordance with         the provisions of this Section 16.      16.2     Escrow Deposits.              Upon execution of the Escrow Agreement, Supplier shall deposit copies of the         then-current Escrow Materials to the escrow service provider, subject to the         terms and conditions of the Escrow Agreement, which deposit shall be promptly         and routinely supplemented by Supplier and otherwise kept current so as to         accurately reflect the Source Code for the then current version of the Software         under license to Verizon (including Releases or Updates provided to Verizon         hereunder as well as any other  material upgrade or modification of or         enhancement thereto), and the same shall be part of the Escrow         Materials.  Supplier shall designate a mutually acceptable neutral third party who,        at the expense and request of Verizon made from time to time, shall audit the        materials deposited with the escrow agent for purposes of determining whether        Supplier has fulfilled its deposit obligations.  Supplier will promptly correct any         deficiency disclosed by the audit.      16.3     Release Conditions.              Release of the Escrow Materials to Verizon shall be granted on the terms and         conditions (including for notice and redeposit) set forth in the Escrow Agreement         and as otherwise set forth herein, but in any event whenever:            16.3.1 Supplier indicates to Verizon that it is reasonably likely to materially              breach this Agreement with respect to the continued provision of              Maintenance Services or other maintenance and/or support expressly              required by this Agreement and the same is not remedied within **** after              written notice from Verizon;                16.3.2  Supplier applies for or consents to the appointment of or the taking of              possession by a receiver, custodian, trustee or liquidator of itself or of all                                                                        27   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                       or a substantial part of its property; makes a general assignment for the              benefit of creditors; commences a voluntary case under the Federal              Bankruptcy Code or fails to contest in a timely or appropriate manner or              acquiesces in writing to any petition filed against it in an involuntary case              under such Bankruptcy Code or any application filed against it for the              appointment of a receiver, custodian or trustee or for the reorganization,              dissolution or liquidation of itself or all or a substantial part of its property.                   16.4     License.            Unless other release license rights are specified in an applicable Authorization        Letter, in the event of a release of the Escrow Materials to Verizon pursuant to        the Escrow Agreement, Supplier shall be deemed to have granted to Verizon a        non-transferable, non-exclusive, perpetual, irrevocable, enterprise wide,        worldwide license and right to Use and modify the released Software and Source        Materials and to create derivative works thereof under the terms and conditions        of this Agreement solely to continue to support the Software consistent with the        Maintenance and Support provided under this Agreement, subject to Verizon’s        payment of the applicable fees set forth below.   The Parties agree that any use        by Verizon of any Escrow Materials pursuant to this Agreement and/or any        Escrow Agreement will be subject to (a) payment by Verizon of any License Fees        set forth in an Authorization Letter less the component of such fees attributable to        maintenance and support equal to **** of such License Fees plus an amount        attributable to added requirements of Verizon equal to **** of such License Fees        (collectively a reduction of **** of such License Fees) and (b) all of the terms,        restrictions and conditions of the Agreement, as amended and the following        conditions and obligations: Verizon will (i) treat the source code (and those        Escrow Materials that would otherwise be Confidential Information) as        Confidential Information; (ii) use password protection to limit access to source        code to authorized employees, agents and contractors of Verizon who require        access to perform their duties under this Agreement, as amended; and (iii) make        no copies of the source code in machine-readable or human-readable form        except as reasonably required to perform the activities permitted under this        Agreement.  Upon such Release Condition, Supplier shall have no further        obligation for maintenance and support of such Software or providing Hosting        Services.  Notwithstanding the foregoing, the fees set forth in (a) above for use of        the Escrow Materials shall not apply in the event of a termination of this        Agreement by Verizon due to a material breach by Supplier.  Should Verizon’s        Use of the Source Materials involve Use or copying of copyrighted material or the        practice of any invention covered by a patent, Supplier shall not assert such        copyright, patent or other right in intellectual property against Verizon.    16.5     Bankruptcy.            The obligations of Supplier under this Section 16 (Source Code Escrow) shall        extend to any trustee in bankruptcy, receiver, administrator or liquidator        appointed for Supplier, to Supplier as debtor-in-possession (collectively, the        “Trustee”) and to any other successor in interest to Supplier.  Without limiting the        generality of the foregoing, upon written request of Verizon, Supplier shall not        interfere with the rights of Verizon as provided in this Agreement or the Escrow                                                                        28  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                 Agreement to obtain the Escrow Materials from the Trustee, the escrowee or any        other person or entity having possession thereof, and shall, if requested under        the conditions specified in the Escrow Agreement for release of the Escrow       Materials, cause a copy of such Escrow Materials to be made available to       Verizon.  Notwithstanding anything in this Agreement to the contrary, Verizon        reserves all rights available to it under Section 365(n) of the Federal Bankruptcy        Code, 11 U.S.C. § 365(n) or any equivalent or successor provision thereto and        such rights as may be available under other applicable laws.                   16.6     Dispute Resolution.            Supplier may dispute in good faith the existence of the release conditions        described in Section 16.3 and such disputes will be subject to final and binding        arbitration by a three-arbitrator panel wherein each party shall select an        arbitrator, and those two arbitrators shall jointly select a third, and the panel’s        written decision must be provided within **** of the date such arbitration claim is        submitted.  The panel will be required to furnish, promptly upon conclusion of the        arbitration, a written decision, setting out the reasons for the decision.  The        arbitration decision will be final and binding on the Parties, and the decision may        be enforced by either Party in any court of competent jurisdiction.  The arbitration        will be conducted in New York, NY under the then current Commercial Dispute        Resolution procedures of the American Arbitration Association ("AAA"). Each        Party will bear its own expenses and an equal share of the expenses of the third        arbitrator and the fees, if any, of the AAA, unless the arbitrator rules otherwise as        detailed above. The effectiveness of the license described in Section 16.4 (and        any release of the Escrow Materials) shall be delayed until such disputes are        resolved in Verizon’s favor by the arbitrator/panel.          16.7     Survival.             The obligations set forth in this Section shall survive and remain in effect until the        later of (i) all obligations of Supplier to provide maintenance and support for the        Software to Verizon, including to provide Maintenance Services, whether        pursuant to this Agreement or after the expiration or termination of this        Agreement, or (ii) termination or expiration of any separate agreement between        the Parties with respect to maintenance and support for the Software.      16.8     Definitions.            For purposes of this Section 16:                         17.6.1  “Escrow Agreement” means an agreement executed by Supplier and               Verizon which is separate from, but supplemental to, this Agreement and              which sets forth the terms and conditions governing release of the Escrow              Materials to Verizon.                16.8.2  “Escrow Materials” means the then-current Source Code for the              Software,,  all tools and other software required to translate or convert the             deposited Source Code to executable code (e.g. software compilers,             linkers, assemblers, translators and interpreters) that are not readily                                                                                 29  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                         available to Verizon  commercially off- the-shelf, and any Custom               Software obtained through this Agreement.    17.   TERMINATION    17.1  Supplier shall be in default if Supplier fails to perform any of its material        obligations under this Agreement , and such failure to perform shall continue for         a period of **** after Supplier's receipt of Verizon's written notice thereof, then, in        addition to all other rights and remedies under this Agreement at law or in equity        or otherwise, Verizon shall have the right, upon written notice, to immediately        cancel any or all affected Orders or, at Verizon’s option, to terminate this        Agreement, without any obligation or liability to Supplier for said termination or        cancellation.     17.2  This Agreement may additionally be terminated, by written notice only, as        follows:          17.2.1 Unless otherwise expressly provided in such Authorization Letter, Verizon               may terminate any or all Authorization Letters issued hereunder without               cause, effective upon **** notice, upon written notice to Supplier and, in               such event, Supplier shall receive payment only in accordance with               Section 17.4 hereof.          17.2.2 Supplier may terminate any affected Authorization Letter if Verizon fails to               make timely payments of those portions of invoices that are not disputed               in good faith as required hereunder, and any such failure is not remedied               within **** after receipt of written notice by Supplier stating its intention to               terminate such Authorization Letter.          17.2.3 By either party, effective immediately, upon written notice to the other               party, if any of the following events occurs:     17.2.3.1    The other party files a voluntary petition in bankruptcy.                17.2.3.2    The other party is adjudged bankrupt.                17.2.3.3    A court assumes jurisdiction of the assets of the other                           party under a federal reorganization act.                17.2.3.4    A trustee or receiver is appointed by a court for all or a                           substantial portion of the assets of the other party.                17.2.3.5    The other party becomes insolvent or suspends its                           business.                17.2.3.6    The other party makes an assignment of its assets for the                           benefit of its creditors except as required in the ordinary                           course of business.    17.3  Upon termination of this Agreement, Supplier shall deliver to Verizon, and         Verizon shall own, all Custom Software and Paid Work Product created by                                                                        30   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                   Supplier (subject to any Background Materials of Supplier incorporated therein)         at and prior to the time of such termination to the extent owned by Verizon under        this Agreement or any Authorization Letter and paid for by Verizon, including        source code and Documentation, whether or not completed.   Supplier also shall        deliver to Verizon all Background Materials incorporated in such Custom        Software or Paid Work Product not then in the possession of Verizon; but in no        event shall Verizon’s rights to any Background Materials be deemed to permit        Verizon to access the Platform operated by Supplier after such termination        (subject to Section 17.6).  Supplier shall, except as required by law or this        Agreement, also return to Verizon all Verizon Confidential Information and        Verizon will return to Supplier all Supplier Confidential Information.    17.4  Effect of Termination. Upon termination of this Agreement by Verizon for        convenience, Supplier shall immediately curtail all activities hereunder upon the        effective date set forth in the notice of such termination.  Upon such termination,        Verizon’s sole liability to Supplier will be the payment of (i) all amounts due for        Services satisfactorily performed up to the effective date of termination, (ii) any        termination fees or other charges set forth in an Authorization Letter and (iii)        respecting Development Services, all amounts due Supplier for Software        Milestones or work Accepted before the date of termination, plus payment for the        next uncompleted Milestone on a time and materials basis based on number of        hours worked (no hours prior to the execution of such Authorization Letter shall        be included) multiplied by $****, capped at **** of the payment due for such        Milestone under the applicable Authorization Letter; provided, however, in the        event an Authorization Letter includes termination fees or charges, such stated        termination fees or charges shall be in lieu of any other partial payments .         Except as set forth above, in no event will Verizon be liable to Supplier either for        compensation or for damages of any kind or character whatsoever, whether on        account of the loss by Supplier of present or prospective profits on sales or        anticipated sales, or expenditures, investments or commitments, made in        connection with the establishment, development or maintenance of Supplier’s        business, or on account of any other cause or thing whatsoever   17.5  Effect on Licenses.  In no event shall termination of this Agreement (other than        by Supplier pursuant to Section 17.2.2) impair Verizon’s right, title and interest to        Custom  Software or Paid Work Product acquired and paid for by Verizon, or        other Supplier materials (including Background Materials or Supplier-retained        Work Product) that are licensed on a perpetual, irrevocable or post-termination        basis hereunder. The irrevocable nature of paid-for such licenses shall not        preclude Supplier from seeking injunctive relief to prevent the reoccurrence or        continuing of a breach of this Agreement by Verizon but such injunction may not        restrict or limit Verizon’s use of the Custom Software or Paid Work Product within        the scope of the license granted herein provided Verizon has fully paid for such        Custom Software or Paid Work Product.   17.6  Upon expiration and/or termination of this Agreement or any Authorization Letter        for any reason (except for termination by Supplier resulting from breach by        Verizon under Section 17.2.2, in which case Supplier may demand prepayment        for such services and any other amounts due hereunder), and at the request of        Verizon, Supplier shall (a) for a period not to exceed **** after the date of        termination (the “Transition Period”), continue to provide                                                                        31   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                   Services and Software to enable Verizon to utilize its Data Service (subject to the        continued payment of undisputed payments by Verizon pursuant to the terms of        this Agreement or as otherwise agreed by the parties) and (b) use reasonable        efforts to assist Verizon to ensure a seamless migration without interruption to        Subscribers (collectively, the “Transition Services”) on mutually agreed pricing        and other terms but in no event shall Supplier be required under this subsection        (b) to license its Platform to Verizon or such third party as part of the Transition        Services.  Without limiting the foregoing obligations, to the extent that any        services are required, in addition to and beyond the scope of the Transition        Services, to effect such transition to Verizon or another application service        provider, the parties will mutually agree upon further terms (including fees)        regarding the scope and schedule of such additional services. If Verizon does not        request Transition Services, Supplier will cease providing the Service(s) at the         time termination becomes effective.     17.7  The foregoing rights are in addition to, and not in limitation of, any other remedy        a party may have at law or equity.   18.   INFRINGEMENT   18.1  Supplier shall indemnify, defend and hold harmless Verizon, its parents,        subsidiaries and Affiliates, its OEMs (subject to the limitations in Section 18.5)         and its and their respective directors, officers, employees, agents, successors         and assigns ("IP Indemnified Parties") from and against any claims, demands,         lawsuits, liabilities, loss, cost or expenses (including, but not limited to,         reasonable fees and disbursements of counsel and court costs), judgments,         settlements and penalties of every kind ("IP Claims") arising from or relating to         any actual or alleged infringement or misappropriation of any patent, trademark,         copyright, trade secret or any actual or alleged violation of any other intellectual         property or proprietary rights arising from or in connection with the Services         (including related products furnished hereunder by Supplier) or Software         provided  under this Agreement.  Notwithstanding anything to the contrary         contained in this Agreement (including, but not limited to, Section 1), the         provisions of this Section 8, shall govern the rights of Indemnified Parties with         respect to indemnification for IP Claims.    18.2  The procedures, limitations and restrictions set forth in Section 31          (Indemnification) shall apply in the case of IP Claims hereunder.   18.3   Without limitation of Sections 18.1 and 18.2, if sale, use or if applicable,         distribution, of the products or Services becomes subject to an IP Claim, Supplier         shall, at Supplier’s option and Supplier’s expense:          18.3.1 Procure for Verizon the right to use the Services or Software (including               related products furnished hereunder);          18.3.2 If 18.3.1 is not possible modify the Services or Software (including related              products furnished hereunder)  so they become non-infringing;                                                                          32   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                   18.3.3 If neither 18.3.1 or 18.3.2 is possible replace the Services or Software               (including related products furnished hereunder) with substantially               equivalent, non-infringing products and/or Services; or          18.3.4 If none of the above, are commercially feasible (for the purposes of this               Section 18.3.4, the cost of the remedy shall be deemed “commercially               feasible” if the costs of implementation thereof are less than the amount               paid by Verizon to Supplier hereunder during the prior twelve months               prior to such date for such impacted Service or Software), Supplier shall               terminate the Services or Software (including related products furnished               hereunder) and refund the purchase price paid therefor.    18.4  Exclusions.   The obligations under Section 18.1 shall not apply  with respect to         any claim based upon (i) any use of the Software or Services not in accordance         with this Agreement or the applicable Application Letter, if such infringement         results solely from such use not in accordance with this Agreement or the         applicable Application Letter, (ii) use of any Software or Services in an         application or environment or on a platform or with devices for which it was not         designed or contemplated in a Specification or Authorization Letter or otherwise         authorized by Supplier, (iii) alterations, modifications  or enhancements of the         Software not created by or on behalf of Supplier where the unmodified Software         would have avoided the claim; (v)  combination of Software with software or other         materials not provided or specified by or through Supplier, where the combination         itself causes the infringement; (v); that portion of any Software which implements         an IP Indemnified Party's (including an OEM’s) requirements where there was no         non-infringing way to implement such requirement or (iv) IP Indemnified Party's         continuing allegedly infringing activity after a reasonable period (which shall in no         event be less than **** with respect to claims regarding Apps, and **** for all         other claims) after being provided without charge Software modifications (without         degradation of function or performance) that would have avoided the alleged         infringement.    18.5  The indemnification obligations directly in favor of OEMs shall only apply where         the Supplier’s technology has been pre-loaded on to such OEM’s device by         mutual agreement.   Further, for the avoidance of doubt, Supplier         acknowledges and agrees that each OEM is an intended third party         beneficiary of the indemnification obligations hereunder and, provided        such OEM (as a precondition) makes no voluntary admission in respect of        any IP Claim, grants to Supplier the exclusive right to defend and settle        any IP Claim and affords such assistance to Supplier (at Supplier's cost) in        the defense and settlement of such IP Claim as Supplier may reasonably        require, then OEM  shall be entitled to enforce this indemnity directly         against Supplier.   19.   CONFIDENTIAL INFORMATION         The non-disclosure provisions set forth as Exhibit F shall apply to this        Agreement.                                                                         33   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS     

 

                                                                           20.  OWNERSHIP   20.1  Retention of Title by Verizon           20.1.1 Title to all materials and property Verizon provides to Supplier in              connection with this Agreement shall remain in Verizon or, if applicable,              its licensors or lessors.  Without limitation of the foregoing, all Verizon              Content, all Subscriber Data, all Usage Data, all Web Site style and              design guides provided by Verizon, all Verizon Trademarks, and any              alterations and/or modifications to the foregoing shall be and remain the              proprietary information of Verizon, or, as the case may be, its Content              Providers, its Subscribers or other third parties having rights therein.         20.1.2 Any materials or property Verizon provides Supplier, and any materials or              property of Verizon or its Subscribers or Indirect Channel Entities that              otherwise comes into Supplier’s possession or control in connection with              a Data Service under this Agreement shall be used only in the              performance of this Agreement, unless otherwise authorized in writing by              Verizon.  Supplier shall adequately protect all such material and property,              and shall deliver or return it to Verizon or otherwise dispose of such              individual and property as directed by Verizon.  Supplier shall be              responsible for any loss of or damage to tangible materials or tangible              property owned by Verizon, or its licensors or lessors while in Supplier's              possession or control.    20.2  Ownership Rights         20.2.1 The Platform and Background Materials (and any corrections,              enhancements or modifications thereto but excluding Custom Software or              Paid Work Product) shall be owned by Supplier.           20.2.2 For the purposes of this Agreement, “Work Product” shall mean all              designs, models, prototypes, drawings, data storage media, listings,              deliverables, technical data, inventions, improvements, discoveries,              computer software (including firmware), and other forms of technology or              intellectual property made, conceived, developed or actually or              constructively reduced to practice by Supplier in connection with or              pursuant to the terms and conditions of this Agreement, whether solely or              jointly with others, and which are associated with, refer to, are suggested              by, or result from any services which Supplier may perform pursuant to              this Agreement, or from any information obtained by Supplier from              Verizon or in discussions and meetings with employees of Verizon or any              of its Affiliates including any reports to be prepared by Supplier for              Verizon under this Agreement.  For the avoidance of doubt, Work Product              shall not include the Platform, Background Materials or any              Documentation associated with the foregoing.           20.2.3 Rights in Work Product:                 20.2.3.1    Subject to the last sentence of Section 20.2.2, Supplier                    hereby agrees that (i) Custom Software, and (ii) other creative                                                                         34  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                             works that VZ specifically pays for and is identified in an                    Authorization Letter as a Paid Work Product (“Paid Work                    Product”), are works made for hire exclusively for Verizon under                    the patent or copyright laws of the United States and shall become                    and remain the exclusive property of Verizon, and Verizon shall                    have the rights to use such for any purpose without any additional                    compensation to Supplier.  In the event any Custom Software or                    Paid Work Product produced under this Agreement shall not be                    deemed to be a work made for hire exclusively for Verizon under                    the patent or copyright laws of the United States, Supplier hereby                    grants and assigns to Verizon all right, title and interest in and to                    (including the right to reproduce, modify, display, produce                    derivative works of, translate, publish, sell, use, dispose of, and to                    authorize others so to do, and the right to patent or copyright and                    to register such patent or copyright in Verizon’s or its nominee's                    name) all Custom Software or Paid Work Product, subject to                    Section 20.2.1.  Supplier further agrees to assist Verizon in every                    proper way to protect Custom Software or Paid Work Product,                    including, but not limited to, signing patent and copyright                    applications, oaths or declarations, and assignments in favor of                    Verizon relating to the Custom Software or Paid Work Product, as                   well as such ancillary and confirmatory documents as may be                   required or appropriate to insure that such title is clearly and                   exclusively vested in Verizon, within the United States and in any                   and all foreign countries.  Supplier further agrees to assist and                   cooperate with all efforts to enforce the rights of Verizon in such                   property against any third parties.              20.2.3.2     (a) Ownership of all Work Product that is not Custom                    Software or Paid Work Product shall be retained by Supplier                   (“Supplier-retained Work Product”).  With respect to such                   Supplier-retained Work Product, Supplier grants to Verizon a                   nonexclusive, perpetual, fully paid up, royalty free, worldwide,                   irrevocable license under such Supplier-retained Work Product to                   make/have made, use, sell, have sold and otherwise provide                   Verizon products (through one or more intermediaries) to                   Verizon’s end-user customers.  For the avoidance of doubt, the                   foregoing license rights to Supplier-retained Work Product shall                   not apply or extend to Verizon a license to Background Materials                   or to the Platform.                             (b)  With respect to Custom Software or Paid Work Product                    consisting of/including improvements or enhancements to                    Supplier’s Background Materials (“Verizon-Owned Improvements                    to Background Materials”), such Verizon-Owned Improvements to                    Background Materials must be expressly identified as such in the                    applicable Authorization Letter in accordance with Section 20.2.6.         20.2.4 Supplier grants to Verizon a royalty-free, nonexclusive, transferable,              sublicensable, and irrevocable license during the Term to any and all              Background Materials which are incorporated in any Custom Software,                                                                         35  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                         Paid Work Product or other materials licensed to Verizon hereunder               (provided, with respect to such other licensed materials, such license to               incorporated Background Materials shall be coterminous with the license               to such other licensed materials) under this Agreement to Verizon by               Supplier, provided that such license shall only be to the extent that               Supplier has, or prior to completion of final settlement of this Agreement,               may acquire, the right to grant such license without becoming liable to               pay compensation to others solely because of such grant. For the              avoidance of doubt, but without limitation of the foregoing, Supplier              retains ownership of all right, title and interest in and to, including any and              all Intellectual Property Rights it may have, in Background Materials.          20.2.5 Supplier warrants and represents that it has or will have the right, through              written agreements with all employees performing Services under or in              connection with this Agreement, to secure for Verizon the rights called for              in this Section.  Further, in the event Supplier uses any subcontractor,              consultant or other third party to perform any of the Services contracted              for by this Agreement, Supplier agrees to enter into such written              agreements with such third party, and to take such other steps as are or              may be reasonably required to secure for Verizon the rights called for in              this Section.         20.2.6 Identification Requirements.  The parties shall identify Custom Software              and Paid Work Product in each applicable Authorization Letter, which              shall contain the following provisions to state the Parties’ intent as to the              use of such Work Product:                 “OWNERSHIP OF WORK PRODUCT:                                For Custom Software, Paid Work Product or Verizon-Owned Improvements to                Background Materials of Supplier:                                 [LIST/DESCRIBE, IF ANY]                                CHOOSE 1:                                (a) Exclusive to Verizon.                                (b) Non-Exclusive.  Verizon grants to Supplier a nonexclusive, perpetual, fully                paid up, royalty free, worldwide, irrevocable license under such Improvements                to Background Materials to make/have made, use, sell, have sold and                otherwise provide Supplier products (through one or more intermediaries) to                Supplier customers.     21.   SUBSCRIBER DATA AND CONTENT    21.1  Subscriber Privacy            Supplier shall (i) protect the privacy of Subscribers to the full extent legally         required, (ii) promptly implement and comply with all policies and practices         adopted by Verizon concerning the collection, storage, or use of Subscriber Data         to the extent such policies have been provided in writing to Supplier and (iii) treat                                                                          36   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                 Subscriber Data as “Confidential Information” in accordance with Section 20 of        this Agreement.  As between the Parties, Verizon shall have the sole right to        adopt and communicate to Subscribers statements about and descriptions of        such policies and practices or any breach thereof.          21.2  Ownership of  Data            As between Supplier and Verizon, Verizon owns all right, title, and interest,        including copyright and other proprietary rights, in CPNI, Subscriber Data and        Usage Data, whether collected by Verizon or Supplier.          21.3  Use of Data           In the event Services hereunder require Supplier access to and/or use of any        CPNI, Subscriber Data or Usage Data, such shall be used only in the        performance of Services hereunder and only to the extent necessary to provide        such Services. Supplier shall have no right to record, monitor, reproduce,        disclose, sub-license, re-sell or otherwise distribute all or any portion of CPNI,        Subscriber Data or Usage Data to any person in any form or any manner other        than as necessary or appropriate in providing Services hereunder.          21.4  Use of Content          Except to the extent required to meet the Service Requirements, Supplier will not        record, monitor or disclose any Subscriber’s use of any Content unless instructed        to do so in writing by Verizon, or as required by law, regulation, or court order or        as necessary to cooperate with a lawful order or demand of law enforcement        officials.          21.5  Certain Confidential Information           For greater certainty, and without limiting the terms of Exhibit F, all CPNI,        Subscriber Data and Usage Data shall be Confidential Information of Verizon        under the terms of Exhibit F.            21.6  Return or Destruction           Upon the expiration or earlier termination of this Agreement Supplier shall deliver        to Verizon all copies of Content, CPNI, Subscriber Data and Usage Data in the        possession or control of Supplier and deliver a certificate of an officer certifying        that Supplier has retained no copies thereof other than copies required to be       retained under applicable law. Alternatively, Verizon shall have the right to       instruct Supplier to delete and destroy, in a nonrecoverable manner, all copies of       such information, and to witness and supervise such deletion and destruction,       directly or using appropriately qualified agents designated by Verizon.       Notwithstanding anything to the contrary in this Agreement or Exhibit F, for so       long as any CPNI, Subscriber Data and Usage Data remains in the possession       or control of Supplier, it shall be deemed “customer information” of Verizon for       purposes of Section 2 of Exhibit F.                                                                                 37  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                           21.7  No Advertising           Except as otherwise provided in an Authorization Letter, Supplier shall not place       or display, allow third parties to place or display, or otherwise enable or allow       transmission to Subscribers via Platform of any advertisements, announcements,       or other messages without the prior written consent of Verizon.         21.8  Unsolicited Commercial Messages           Supplier shall use commercially reasonable efforts to ensure that no        unauthorized third parties are able to gain access to and/or utilize a Platform to        generate and send content of any kind, including, but not limited to, unsolicited        commercial messages.  For purposes of this Section, “commercially reasonable        efforts” include, by way of example and not limitation, the prompt removal by        Supplier of any content it learns violates this Section, with written notice to        Verizon of such removal(s).   22.   USE OF TRADEMARKS          22.1  Grant to Verizon: Supplier hereby grants Verizon a non-exclusive, limited-             term, non-transferable, revocable right and license to use, reproduce,              publish, perform and display the Supplier Trademarks in connection with              the development, use, reproduction in promotional and marketing              materials, and electronic and printed advertising, publicity, newsletters              and mailings about the Data Services. Verizon hereby acknowledges              Supplier's exclusive ownership of and title to the Supplier Trademarks              and the goodwill attaching thereto.  Verizon agrees that the use of              Supplier Trademarks will conform with usage guidelines that Supplier              provides in writing to Verizon from time to time.           22.2   Grant to Supplier.                  22.2.1    License.               22.2.1.1    Subject to the terms and conditions of this Agreement,                    Verizon hereby grants to Supplier a limited, nonexclusive,                    nontransferable, royalty-free right and license to use the Verizon                    Marks solely in connection with connection with providing the                    Services.               22.2.1.2    Except as provided in 22.2.1.1 above, Supplier shall not                    use, nor permit any other person or entity to use, the Verizon                    Marks in any manner, including, without limitation, as part of a                    corporate name, trademark, service mark, domain name, trade                    dress or logo.               22.2.1.3    Supplier shall have no right to grant sublicenses of the                    Verizon Marks.                 22.2.2    Quality Standards.                                                                        38  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                       22.2.2.1    Supplier agrees that the nature and quality of all use by                    Supplier of the Verizon Marks shall conform to such reasonable                    guidelines and standards as are provided in writing from time to                    time by Verizon.              22.2.2.2     Supplier shall submit to Verizon for review and approval, at                    least **** prior to proposed use, all materials, in which the Verizon                    Marks are used.  Subsequent changes to previously submitted                    materials still in the approval process will be approved within ****.                     Supplier hall not publish, distribute or use any such materials, in                    which the Verizon Marks are used without the prior written                    approval of the following representative of Verizon:                ****, email ****.               22.2.2.3    Notwithstanding the foregoing, Supplier may designate at                    the time of submission that the requested approval is for                    multiple/repetitive, identical uses on the same medium.  Supplier                    may request approval for such multiple/repetitive, identical use for                    a period not to exceed the end of the term of this Agreement.               22.2.2.4    Verizon reserves the right, in its sole discretion and without                    cause, to refuse to approve any proposed Supplier use of the                    Verizon Marks.               22.2.2.5    Ownership and Goodwill.  Supplier acknowledges that, as                    between Verizon and Supplier, Verizon’s affiliate Verizon                    Trademark Services LLC (“VTS”) is the sole and exclusive owner                    of rights in the Verizon Marks, and Supplier undertakes not to                    challenge the validity of the Verizon Marks or VTS’s registration                    and ownership of the Verizon Marks, and agrees that it will do                    nothing inconsistent with such ownership.  Supplier further                    acknowledges and agrees that all use of the Verizon Marks by                    Supplier and all goodwill generated by and developed therefrom                    shall inure to the benefit of and be on behalf of VTS.  Supplier                    agrees that nothing in this Agreement shall give Supplier any right,                    title or interest in or to the Verizon Marks other than the right to                    use the Verizon Marks in connection with the Licensed Use in the                    manner contemplated by this Agreement and only for so long as                    this Agreement is in force.   23.   PUBLICITY AND DISCLOSURE         Each party agrees not to provide copies of this Agreement, or otherwise disclose        the terms of this Agreement, to any third party without the prior written consent of        the other party, except as required by law.  Except as required by law, each party        further agrees to submit to the contacts below, for written approval, all        advertising, sales promotion, press releases and other publicity matters relating        to the product furnished and/or the Service performed pursuant to this        Agreement, when a name or mark or the name or mark of the other party or any       of its partners or Affiliates is mentioned or language from which the connection of                                                                        39  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                 said name or mark may be inferred or implied.  Such requests shall be sent to        each of the following:                                        If to Verizon:                                              If related to Verizon Wireless products or services, to                          Vice President -- Corporate Communications                          Verizon Wireless                          One Verizon Way                          VC43E062                          Basking Ridge, New Jersey 07920                                                    If related to Verizon Wireline products or services, to                          Vice President -- Media Relations                          Verizon Telecom                          One Verizon Way                          VC31W467                          Basking Ridge, NJ 07920                                                    If related to Verizon Business products or services, to                          Vice President -- Media Relations                          Verizon Business                          One Verizon Way                          VC31W461                          Basking Ridge, NJ 07920                                        If to Supplier:                                              Synchronoss Technologies, Inc.                          200 Crossing Boulevard                          Bridgewater, NJ  08807                          Attention:  President                                                     With a copy to Supplier’s General Counsel at the same                          address.   24.   COMPLIANCE WITH LAWS   24.1  Supplier represents and warrants (i) that it and, to the best of its knowledge,  its        directors, shareholders, officers, employees, agents and all permitted        subcontractors are currently in compliance and (ii) that it and its directors,        shareholders, officers, employees, agents and all permitted subcontractors will        remain in compliance with, the provisions of all applicable federal, state and local        laws, including rules, regulations and orders decree or direction of the U.S. or        applicable foreign jurisdictions (collectively “laws”) in performance of this        Agreement, , including but not limited to any laws pertaining:         24.1.1 to the employment of labor, hours of labor, health and safety, payment of              wages, payment of taxes, employment eligibility status and verification (I-             9); in this regard, Supplier shall not discriminate against any employee or                                                                         40  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                       applicant for employment because of race, color, religion, disability, sex,              national origin, age, physical or mental disability, veteran status or other              unlawful criterion, and it shall comply with all applicable laws against             discrimination. (If applicable, the Equal Opportunity Clauses set forth in             41 C.F.R. §§60-1.4(a), 60-250.5(a), and 60-741.5(a) are incorporated by              reference herein.);        24.1.2 to the safeguarding, protection, privacy, security, encryption,              unauthorized disclosure, breach notification and disposal of personal or              similar information used, maintained, and/or accessed on Verizon’s behalf              including, without limitation, the Standards for Protection of Personal              information of the Residents of the Commonwealth of Massachusetts 201              CMR17:00; California Civil Code §1798.82 and the Fair and Accurate              Credit Transactions Act of 2003, Public Law 108-159;         24.1.3  to directly or indirectly, making, offering, causing to be made, accepting,              requesting, suggesting, directing or otherwise inducing any bribe,              payment, loan, commission, hospitality, gift of money, kick-back,              inducement or anything of value or other advantage (individually or              collectively “Bribery”) to any official, employee, agent or instrumentality of              any government, including legislative, administrative or judicial positions,              or any public international organization or any other person, company or              legal entity to gain any advantage for Verizon or Supplier, or which is in              violation of any economic or trade sanctions, in connection with any              transaction relating to this Agreement that could result in a violation of              any laws relating to Bribery, including without limitation the Foreign              Corrupt Practices Act and the U.K. Bribery Act 2010 (“U.K. Bribery”).               Notwithstanding any other provisions in this Agreement, Verizon may              suspend performance or terminate this Agreement immediately upon              written notice, if Supplier breaches any of the terms set forth in sections              above.  Following notice of termination, Verizon shall not be responsible              for any payments due under the Agreement, and shall not be required to              complete any order or take any other action pursuant to this Agreement, if              it has reasonable basis to believe that such payment, completion of order,              or other action would violate any applicable law, including but not limited              to the Foreign Corrupt Practices Act, or the UK Bribery.           In the event of an unauthorized disclosure of personal or similar information or        any other violation of the foregoing pertaining to Verizon, Supplier shall provide        notice of same by e-mail to security.issues@verizon.com within forty-eight (48)        hours, and to the notice addressee set forth in the Notices section of this        Agreement by the means set forth therein.  Supplier shall also procure any        required permits or certificates necessary to perform its obligations under this        Agreement.      24.2  Software furnished shall comply, to the extent applicable, with the requirements        of the Federal Communications Commission’s Rules and Regulations, as may be        amended, including those sections concerning the labeling of such Software and        the suppression of radiation to specified levels to the extent applicable.  If the        Software generates interference harmful to radio communications, and such        Software was installed in accordance with such Rules and Regulations, then                                                                         41  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                   Supplier shall provide to Verizon methods for suppressing the interference.  If the         interference cannot be reasonably suppressed, Supplier shall accept return of         the Software, refund to Verizon the price paid for the Software and bear all         expenses for removal and shipment of such Software.  Nothing herein shall be         deemed to diminish or otherwise limit Supplier’s obligations under Section 31,        Indemnification or any other rights or remedies available to Verizon, whether at        law or in equity.   24.3  Supplier represents and warrants to Verizon that at the time of delivery, the        Platform delivered, or Software delivered, hereunder shall be “CALEA         Compliant”, meaning that they will comply with the provisions of the         Communications Assistance for Law Enforcement Act (Pub L. 103-414, Title 1,         October 25, 1994, 108 Stat 4279, as amended), as well as any regulations         implementing the provisions of the law.  .   24.4   Notwithstanding Section 24.1, it shall not be considered a material breach of this         Agreement if a Party is not in compliance with an Applicable Law if such non-        compliance is not material to a Party’s performance under this Agreement.    25.    FORCE MAJEURE          Neither Party shall be responsible for any delay or failure in performance of any         part of this Agreement to the extent that such delay is caused by reason of acts         of God, wars, revolution, civil commotion, acts of public enemy, embargo, acts of         government in its sovereign capacity, or any other circumstances beyond the         reasonable control and to the extent not involving any fault or negligence of the         Delayed Party ("Condition").  If any such Condition occurs, the Party delayed or         unable to perform ("Delayed Party"), upon giving prompt notice to the other         Party, shall be excused from such performance on a day-to-day basis during the         continuance of the impacts of such Condition (and the other Party shall likewise         be excused from performance of its obligations on a day-to-day basis during the         same period); provided, however, that the Party so affected shall use its best         reasonable efforts to avoid or remove such Condition, and both Parties shall         proceed immediately with the performance of their obligations under this         Agreement whenever such causes are removed or cease.  Labor difficulties,         including without limitation, strikes, slowdowns, work stoppage, picketing or         boycotts, shall not constitute a Condition that excuses a party from performance         of its obligations under this Agreement.  In the event of such labor difficulties         affecting a party, the other party shall use all lawful means to perform Services or         meet obligations agreed to under this Agreement. If the Condition continues for         more than ****, then the Party affected may terminate this Agreement or any         Authorization Letter.    26.  ASSIGNMENT         The rights, obligations, and other interests of Supplier shall not be assigned by        Supplier, in whole or in part, without the prior written consent of Verizon and any        purported assignment of same shall be void and ineffective; provided, however,        no consent shall be required in the event of the sale of all of the capital stock or                                                                          42   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                 substantially all of the assets to another party. provided, that such acquiring third        party:         (a) agrees to be bound by all of the terms and conditions of this Agreement, and          (b) meets none of the following criteria:           i.  Such acquiring third party is a competitor of Verizon or is owned by a              competitor of Verizon;          ii.  Such acquiring third party does not have substantially equal or greater              financial wherewithal as compared to Supplier; or          iii. Verizon has been in litigation with such entity in the past over one or more              of the following topics: Intellectual Property Rights, confidential              information, data protection, or a material breach of a services              agreement.   26.1  If Verizon sells, exchanges or otherwise disposes of all or a portion of the assets        of, or Verizon’s interest in, any business unit in which Services are used, then        Verizon shall have the right to assign to such third party all applicable licenses,        warranties, maintenance schedules and rights granted under this Agreement with        respect to such Service; provided that the third party agrees to be bound by all        obligations of Verizon to Supplier that pertain to the Service. Notwithstanding the        foregoing, Verizon shall have the right to assign this Agreement to any Affiliate.]]   27.   SUBCONTRACTING         Supplier shall not use subcontractors to perform the Services under this        Agreement except by prior written consent of Verizon. Requests by Supplier to        Verizon to use subcontractors shall be in writing and shall specify the Services to        be subcontracted and the identity of the proposed subcontractors.  It shall be        Supplier’s responsibility to update Verizon as it adds or deletes subcontractors        and to ensure that the subcontractors it uses are in all cases approved by        Verizon.  Supplier accepts full responsibility for the acts and omissions of        subcontractors and of persons either directly or indirectly employed by them in        connection with performing Services hereunder to the same extent as Supplier is        responsible for the acts and omissions of persons directly employed by Supplier.                In the event Verizon approves the use of a Subcontractor, for all subcontractors,        including, without limitation, any application provider or Content provider, that        directly or indirectly furnish hardware, facilities, software, data files, or services        that are elements of, or support, the Hosted Services (“Third Party Providers”),        Supplier shall contract with such Third Party Providers (other than Terremark or        any other affiliate of Verizon) on terms and conditions that are the same as, or no        less stringent and beneficial to Verizon than the terms and conditions of Sections        5, 19, 20, 21, 24.1.2 (if the Subcontractor will have access to Massachusetts        customer information described in such Section) and 26 and the applicable SLA;        and further as and for an inducement to Verizon to enter into this Agreement,        Supplier shall make Verizon a third party beneficiary in all respects under such        contracts between or among Supplier and such Third Party Providers in order to                                                                         43  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                 pass through to Verizon all rights and remedies against such Third Party        Providers as may be beneficial to Verizon.  Verizon’s rights and remedies under        all such Third Party Provider contracts shall be supplemental to its rights and        remedies against Supplier.    28.   TAXES    28.1  Verizon shall, as required by law, pay all state and local sales and use tax or        other similar tax (each, a "Tax"), which is directly and solely attributable to        purchases by Verizon from Supplier for consideration under this Agreement.         Supplier shall bill such Tax to Verizon in the amount required by law, separately        stating the amount and type of the billed Tax on the applicable invoice; Verizon        shall pay such billed amount of Tax to Supplier; and Supplier shall remit such        billed amount of Tax to the appropriate tax authorities as required by law;        provided, however, that Supplier shall not bill to or otherwise attempt to collect        from Verizon any Tax with respect to which Verizon provides Supplier with (i) an        exemption certificate prepared in accordance with applicable law, (ii) a direct pay        number, or (iii) other evidence, reasonably acceptable to Supplier, that such Tax        does not apply.  Except as provided in this Section 28.1, Supplier shall bear the        costs of all import and export duties and other governmental fees of whatever        nature (other than taxes) with respect to all Software and Services supplied        under this Agreement.  For the avoidance of doubt, Supplier shall be solely        responsible for any taxes, tax-like charges or tax-related or other surcharges        determined by Supplier's income, net worth, franchise or property.  Supplier will        bear any and all financial responsibility for interest, and penalties resulting from        its failure to comply with applicable law.    28.2  Supplier shall be responsible for any sales, use, excise, value added, service,        consumption, property, franchise, income, or other taxes and duties based upon        or measured by Supplier’s cost in acquiring goods or services furnished or used        by Supplier in the Software and services supplied under this Agreement.   28.3  Supplier shall reasonably cooperate with Verizon so as to minimize the tax        liability of Verizon, including, without limiting the generality of the foregoing,        liability for Tax to be billed and collected under Section 28.1.  Such cooperation        shall include, without limiting the generality of the foregoing: (i) the delivery of        Software and Documentation from Supplier to Verizon via electronic        transmission; (ii) the separate statement of Tax charges on all invoices        (including, without limiting the generality of the foregoing, charges for installation,        assembly, configuration, freight, insurance and shipping); (iii) the maintenance        and invoicing of separate prices for Software and Services; (iv) providing        Verizon, upon request, with a written opinion as to (a) the percentage of the        value of the Software or Services supplied under this Agreement, (b) the        percentage breakdown of value among such categories of Software as Verizon        may identify in its request, and (c) such supporting documentation and        information with respect to such opinion as Verizon may request; and (v) upon        request from Verizon, certifying in writing whether and, if applicable, to what        extent, any particular Software is custom or pre-written.   28.4  Supplier shall cooperate with all reasonable requests of Verizon in connection        with any contest or refund claim with respect to taxes.  If applicable law places                                                                         44  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                 the responsibility on Supplier to collect a Tax from Verizon and Supplier fails to        do so, Verizon will not be responsible for any interest or penalties associated with        Supplier’s failure to invoice such Tax solely due to its error.  If Supplier incorrectly        (in the reasonable opinion of Verizon) bills and collects Tax from Verizon and the        taxing authority requires that any refund from the taxing authority be sought by        the billing party, then, upon request from Verizon (together with reasonable        supporting documentation), Supplier shall seek the refund and remit to Verizon        the amount of the refund actually obtained, together with interest, if any, actually        received, promptly upon receiving such refund and interest, if any, from the        taxing authority.  If the Supplier agrees with a tax authority to waive the        Supplier’s statute of limitations as to its audit period, Verizon will not be        responsible for any portion of tax audit assessments on Supplier beyond        Supplier’s original applicable statute of limitations, nor, will Verizon be        responsible for any portion of tax audit assessments on Supplier for any period        for which Verizon’s statute of limitations is closed due to expiration or audit        settlement.   28.5  If any payment to be made in respect of any invoice is subject, under the law of        any foreign tax jurisdiction, to any withholding tax, notwithstanding any provision        of this Agreement to the contrary, Verizon shall make payment to Supplier of the        amount owing on the invoice, less a deduction for the withholding tax, and shall        account to the relevant tax authority for the withheld tax.  Payments of the net        sum to Supplier and the withholding tax to the relevant tax authority shall        constitute, for purposes of this Agreement, full settlement of the amount owing        under the invoice.  Verizon will, upon written request from Supplier and at        Supplier’s expense, furnish any necessary evidence that may reasonably be        required to establish the payment of the withholding tax to the relevant tax        authority.   29.   PERMITS         Unless otherwise specifically provided for in this Agreement, Supplier (including        any employees, agents and contractors) shall obtain and keep in full force and        effect, at its expense, any permits, licenses, consents, approvals and        authorizations (“Permits”) necessary for the performance of Services.  Upon        request, Supplier must submit to Verizon evidence of any Permits required for        Supplier to perform Services in a given location.    30.   WORK RULES AND ACCESS REQUIREMENTS   30.1  Supplier shall comply with Verizon security rules to the extent provided to        Supplier or with respect to which Supplier has actual or reasonable constructive        notice as well as all governmental security regulations including, but not limited to        U.S. governmental regulations governing security clearances.   30.2  Supplier shall permit reasonable access to employees or subcontractors (for       purposes of this Section, Verizon shall be responsible for such Verizon       subcontractors as if they were Verizon employees) of Verizon during normal        working hours to its facilities to the extent reasonably required in connection with        the Service.                                                                           45  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                             30.3  Supplier shall provide its employees, subcontractors, and agents and work         vehicles with identification in accordance with current generally applicable         Verizon supplier requirements   30.4   If Supplier is given access, whether on-site or through remote facilities, to any         Verizon computer or electronic data storage system in order for Supplier to         accomplish the Services called for in this Agreement, Supplier shall limit such         access and use solely to perform Services within the scope of this Agreement,         shall not without the prior written authorization of Verizon export or transmit any         computer system, electronic file, software or other electronic services, or data         therein contained, to entities or locations other than those specified in this         Agreement and shall not access or attempt to access any computer system,         electronic file, software or other electronic services other than those specifically         required to accomplish the work required under this Agreement and only as         permitted in this Agreement.  Supplier shall limit such access to those of its         employees who are qualified and required, subject to Verizon requiring written         authorization, to have such access in connection with this Agreement, and shall         strictly follow all Verizon’s security rules for use of Verizon’s electronic resources.          All user identification numbers and passwords disclosed to Supplier and any         information obtained by Supplier as a result of Supplier’s access to and use of         Verizon’s computer and electronic data storage systems shall be deemed to be,         and shall be treated as, Verizon Confidential Information under applicable         provisions of this Agreement.  Verizon reserves the right to monitor such actions         by Supplier and Supplier agrees to cooperate with Verizon in the investigation of         any apparent unauthorized access by Supplier to Verizon’s computer or         electronic data storage systems or unauthorized release of Confidential         Information by Supplier.    30.5  If Supplier is given such access to any Verizon computer or electronic storage         system, or if Supplier otherwise exchanges electronic messages or         communications with Verizon (including but not limited to Verizon accessing any         of Supplier’s data bases or systems on-site or remotely), or if Supplier furnishes         software or other electronic transmissions to Verizon, (i) Supplier shall not         transmit or introduce any virus, worm or other malicious code to Verizon or into         its network, computers, electronic storage systems or other systems (the         foregoing shall not apply where Subscriber Data as transmitted by Verizon to         Supplier contains such a virus, worm or other malicious code) and (ii) any         Software provided to Verizon by Supplier for use by Supplier or Verizon shall (a)         contain no hidden files; (b) not replicate, transmit, or activate itself without control         of a person operating computing equipment on which it resides; (c) not alter,         damage, or erase any data or computer programs without control of a person         operating the computing equipment on which it resides unless such practice is         consistent with Specifications or Service Requirements; (d) contain no encrypted         imbedded key unknown to Verizon, node lock, time-out or other function, whether         implemented by electronic, mechanical or other means, which restricts or may         restrict use or access to any programs or data developed under this Agreement,         based on residency on a specific hardware configuration, frequency of duration         of use, or other limiting criteria (“Illicit Code”) unless such practice is consistent        with Specifications or Service Requirements.                                                                             46   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                           30.6  Verizon reserves the right to reasonably request at any time and for any reason        that specific employees, subcontractors, and agents of Supplier be removed from        and not assigned by Supplier to perform Services for Verizon, and Supplier        acknowledges, agrees and understands that Supplier will immediately comply        with such request by Verizon.   30.7  Background Checks.         30.7.1 For each of the employees that Supplier wishes to assign to perform              Services for Verizon, Supplier shall certify to Verizon that it has              conducted (or caused to be conducted) a background check as described              herein (collectively referred to as “background checking”) to the extent             permitted by applicable law.  For purposes of this Section, “employee”             shall include Supplier’s employees and any of Supplier’s contract             personnel; and “assign” shall include training for Services to be provided             to Verizon, unless otherwise agreed to by Verizon.                 30.7.1.1 Where permitted by law, the criminal history check shall                      consist of a federal and state check for felony criminal                      convictions (or the equivalent thereof under relevant law) in all                      locations where the assigned employee has resided, has been                      employed, or has attended school in the immediately                      preceding seven (7) years, and a check of U.S. Government                      Specially Designated National (OFAC) and export denial lists.                       This criminal history check shall include, to the extent available                      and permitted by law, a check for outstanding warrants and a                      check for pending felony charges in all such locations.                        Statewide county searches shall be performed in all states                      where such search mechanism is available without requiring                      specialized data (such as fingerprints or DNA), and the                      National Criminal File database shall also be searched.              30.7.1.2 The employee will be checked against the National/State Sex                      Offender Registry (http://www.familywatchdog.us/ with no state                      selected) or the equivalent, to yield a national and all-states                      search.               30.7.1.3 The name to which employee’s Social Security Number is                      attributed shall be verified.              30.7.1.4 The employee’s citizenship, most recent country of permanent                      residence, and legal right to work in the jurisdiction in which                      the employee will be performing Services for Verizon shall be                      verified.        30.7.2 For any period of time encompassed in the foregoing background check             requirement when the employee was resident outside of the United             States, such background checking shall be conducted by a reputable             investigative agency that conducts background checking in the relevant             country(ies) for transnational technology firms comparable to Verizon,             utilizing database checking, field checking and interviews as needed to                                                                         47  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                       the extent permitted by applicable law.  The criminal convictions check              shall include the equivalent, under relevant non-US law, of those              convictions described in 30.7.1 to the extent permitted by applicable law         30.7.3 Supplier shall comply with all applicable laws in conducting the              background check specified in this Section 30.7 including but not limited              to, where required, securing from each employee who provides Services              to Verizon such employee’s written consent to perform the background             checking specified in this Section 30.7 and to disclose the results thereof             to Verizon upon Verizon’s request to the extent permitted by applicable             law.  Without limitation of the foregoing, Supplier will make all written             disclosures to and obtain written consent from each employee to obtain             consumer reports as defined in and required by the Fair Credit Reporting             Act to the extent permitted by applicable law.  Supplier shall provide such             results and written consent to Verizon upon request from Verizon.              Supplier may be required to recertify on an annual basis that such             Background Checks were performed   for any employee who has             performed Services and was not included in the prior certification.        30.7.4 Without prior review with and consent of Verizon, Supplier shall not             assign any employee to provide Services to Verizon if such employee:              30.7.4.1 has been convicted of a felony (or the equivalent thereof under                      relevant law) within the last seven (7) years which, following a                      review under applicable law and applying the guidelines set                      forth in Exhibit G, Supplier concludes the circumstances of                      which are directly job-related to the assignment at Verizon and                      therefore makes the employee unsuitable for that assignment                      at Verizon, or for whom a warrant is outstanding, or for whom                      a felony charge is currently pending, or is on a U.S.                      Government Specially Designated National or export denial                      list.  The foregoing shall not apply to a minor traffic violation (a                      moving traffic violation other than reckless driving, hit and run,                      driving to endanger, vehicular homicide, driving while                      intoxicated or other criminal offense involving gross                      negligence, recklessness, intentional or willful misconduct                      while operating a motor vehicle), to a conviction that has been                      legally expunged, or to a conviction for a misdemeanor that                      occurred while the employee was under the age of twenty-one                      years; or              30.7.4.2 is on the national or any state Sex Offender Registry which,                      following a review under applicable law and applying the                      guidelines set forth in Exhibit G, Supplier concludes the                      circumstances of which are directly job-related to the                      assignment at Verizon and therefore makes the employee                      unsuitable for that assignment at Verizon               30.7.4.3 does not have the legal right to work in the jurisdiction in which                      the employee will be performing Services for Verizon.                                                                         48  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                 30.7.5 Supplier shall certify to Verizon that Supplier has caused the foregoing              background checking to be performed for each employee assigned to              provide Service for Verizon within **** of the Effective Date; further, upon              request, Supplier shall annually certify no later than the anniversary of the              Effective Date that it has met the foregoing background checking              requirements for all employees then assigned to provide Service for              Verizon.  Such certifications shall be sent via electronic mail to Verizon’s              in accordance with the Notice provision in the Agreement.   31.8  Supplier agrees to comply with Verizon's Supplier Code of Conduct located at        http://www22.verizon.com/ethics, which may be updated from time to time to the        extent Verizon notifies Supplier in writing of such update.    31.   INDEMNIFICATION   31.1  Supplier shall defend, indemnify and hold harmless Verizon, its parents,        subsidiaries and Affiliates, and its and their respective directors, officers,        partners, members, employees, agents, successors and assigns (“Indemnified        Parties”) from and against any claims, demands, lawsuits, damages, liabilities,        loss, costs or expenses (including, but not limited to, reasonable fees and        disbursements of counsel and court costs), judgments, settlements and penalties        of every kind (“Claims”), that may be made: (a) by anyone for injuries (including        death) to persons or damage to tangible property, including theft, resulting in        whole or in part from the acts or omissions of Supplier or those persons furnished        by Supplier, including its subcontractors (if any); (b) by persons furnished by        Supplier and its subcontractors (if any) under Worker's Compensation or similar        acts; (c) by anyone in connection with or based upon Services or Software        (including products furnished hereunder) provided by Supplier and its        subcontractors, if any, or contemplated by this Agreement, including Claims        regarding the adequacy of any disclosures, instructions or warnings related to        any such Services; (d) under any federal securities laws or under any other        statute, at common law or otherwise arising out of or in connection with the        performance by Supplier contemplated by this Agreement or any information        obtained in connection with such performance and (e) for any breach by Supplier        of Section 15.9.1.  The foregoing indemnification shall apply whether Supplier or        an Indemnified Party defends such Claim and whether the Claim arises or is        alleged to arise out of the sole acts or omissions of the Supplier (and/or any        subcontractor of Supplier) or out of the concurrent acts or omissions of Supplier        (and/or any subcontractor of Supplier) and any Indemnified Parties.  Supplier        further agrees to bind its subcontractors, if any, to similarly indemnify, hold        harmless, and defend the Indemnified Parties.   31.2  Verizon will provide Supplier with prompt, written notice of any written Claim        covered by this indemnification and will cooperate appropriately with Supplier in        connection with Supplier’s evaluation of such Claim.  Promptly after receipt of        such request, Supplier shall assume the sole control and defense of such Claim.         Supplier shall not settle or compromise any such Claim or consent to the entry of        any judgment without the prior written consent of each Indemnified Party and        without an unconditional release of all claims by each claimant or plaintiff in favor        of each Indemnified Party.                                                                        49  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS    

 

                                                                             32.  INSURANCE    32.1  Supplier shall secure and maintain at its expense during the term of this        Agreement:         32.1.1 Commercial General Liability insurance (including, but not limited to,              premises-operations, products/completed operations, contractual liability,              independent contractors, personal and advertising injury) with limits of at              least $****, combined single limit for each occurrence and $**** general              aggregate.          32.1.2 Commercial Automobile Liability insurance with limits of at least $****              combined single limit for each accident covering all owned, non-owned              hired and leased vehicles.           32.1.3 Workers' Compensation insurance, in compliance with the statutory              requirements of the state(s) of operation and Employer's Liability              insurance with limits of not less than $**** each accident/disease/policy              limit.          32.1.4 A combination of primary and excess/umbrella liability policies will be              acceptable as a means to meet the limits specifically required hereunder.               THE REQUIRED MINIMUM LIMITS OF COVERAGE SHOWN ABOVE,              HOWEVER, WILL NOT IN ANY WAY RESTRICT OR DIMINISH              SUPPLIER’S LIABILITY UNDER THIS AGREEMENT.          32.1.5 Professional Liability/Errors and Omissions insurance, with limits of not              less than $**** each claim.    32.2   Supplier represents and warrants that it will obtain upon or prior to the effective         date of the agreement a policy or policies of insurance from an insurer(s) that (i)         is licensed, authorized or permitted to do business in the state(s) where service         is to be provided, and (ii) has a Best’s Rating “A- VII” or better.  Supplier shall         deliver a Certificate of Insurance on which Verizon Communications Inc., its         subsidiaries and Affiliates are named as additional insureds and listed as a         Certificate Holder to the following address:                ****                Verizon Sourcing LLC               One Verizon Way               Mailcode ****               Basking Ridge, NJ USA 07920            or via Verizon’s vSource supplier portal.  Supplier’s insurer or its authorized         representative shall provide no less than **** prior written notice of intent to non-        renew, cancellation or material adverse change, except **** notice for         nonpayment of premium shall apply.    32.3  Supplier shall waive its rights of subrogation against Verizon for all claims, as         permitted by law.                                                                            50   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS     

 

                                                                           32.4  Supplier agrees that Supplier's policy is primary and non-contributory with any        insurance or program of self-insurance that may be maintained by Verizon.   32.5  Supplier is responsible for determining whether the above minimum insurance        coverages are adequate to protect its interests.  The above minimum coverages        do not constitute limitations upon Supplier’s liability.   32.6  Self-Insure. Should Supplier elect to self-insure any portion of the insurance        required to be maintained, Supplier shall maintain  a senior unsecured credit        rating from Standard & Poor’s, Moody’s of at least BBB- or Baa2 or        commensurate rating respectively.  If Supplier’s senior unsecured credit rating        falls below either of these thresholds during the term of this Agreement, Supplier        will procure insurance for the risks it is self-insuring as soon as possible but no        later than **** from the date of such event. If Supplier does not have a senior        unsecured credit rating described above, a minimum net worth of $**** will be        required to self-insure and shall be maintained throughout the term of this        Agreement.  If Supplier’s net worth falls below $****during the term of this        Agreement Supplier will procure and maintain insurance for the risk it is self-       insuring as soon as possible.   33.   RELATIONSHIP OF PARTIES         In providing any Services or Software under this Agreement, Supplier is acting        solely as an independent contractor and not as an agent of any other Party.         Persons furnished by the Supplier shall be solely the employees or agents of the        Supplier and shall be under the sole and exclusive direction and control of such        Party.  They shall not be considered employees of Verizon for any purpose.         Supplier shall be responsible for compliance with all laws, rules and regulations        involving its respective employees or agents, including (but not limited to)        employment of labor, hours of labor, health and safety, working conditions and        payment of wages.  Supplier shall also be responsible, respectively, for payment        of taxes, including federal, state, and municipal taxes, chargeable or assessed        with respect to its employees or agents, such as social security, unemployment,        worker's compensation, disability insurance and federal and state income tax        withholding.  Neither Party undertakes by this Agreement or otherwise to perform        or discharge any liability or obligation of the other Party, whether regulatory or        contractual, or to assume any responsibility whatsoever for the conduct of the        business or operations of the other Party.  Nothing contained in this Agreement is        intended to give rise to a partnership or joint venture between the Parties or to        impose upon the Parties any of the duties or responsibilities of partners or joint        venturers.   34.   NOTICES         With the exception of invoices pursuant to Section 11 (Fees/Payment); requests        for publicity consent under Section 23 (Publicity and Disclosure), and MWDBVE        matters under Exhibit E (Primary Supplier Commitment),  Notices concerning this       Agreement shall be in writing and shall be given or made by means of telegram,       facsimile transmission, certified or registered mail, express mail or other                                                                         51  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS    

 

                                                                                 overnight delivery service, or hand delivery, proper postage or other charges paid        and addressed or directed to the respective Parties as follows.  A notice that is        sent by facsimile shall also be sent by one of the other means set out by this        Section:                      To Supplier:      Synchronoss Technologies, Inc.                                200 Crossing Blvd.                                 Bridgewater, NJ  08807                                Attention: President                                Fax:  ****                                With a copy to:                                  Synchronoss Technologies, Inc.                                200 Crossing Blvd.                                 Bridgewater, NJ  08807                                Attention: General Counsel                                Fax:  ****                To Verizon:       Verizon                                 One Verizon Way                                Basking Ridge, NJ USA 07920                                Attention: ****                              With a copy to:    Verizon Sourcing LLC                                One Verizon Way                                Basking Ridge, New Jersey 07920                                Attention:  Vice President and Deputy General                                Counsel - Sourcing                                Fax: ****        Notices for change in ownership, change in name of firm, or change in mailing        address must be given by each party by mailing to the other party within **** of        such change.  Notices for change in ownership must include the names of all        new owners or officers, registered agent for service of process and state of        incorporation or organization.   35.   NONWAIVER         Either party’s failure to enforce any of the provisions of this Agreement or any        Authorization Letter, or to exercise any option, shall not be construed as a waiver        of such provisions, rights, or options, or affect the validity of this Agreement.  36.   SEVERABILITY        If any provision of this Agreement shall be invalid or unenforceable, then such        invalidity or unenforceability shall not invalidate or render unenforceable the        entire Agreement.  The entire Agreement shall be construed as if not containing        the particular invalid or unenforceable provision or provisions, and the rights and        obligations of the Parties shall be construed and enforced accordingly.                                                                        52  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS    

 

                                                                             37.  LIMITATION OF LIABILITY         EXCEPT FOR CLAIMS UNDER SECTION 19                  (CONFIDENTIAL        INFORMATION),  IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE        OTHER PARTY, ITS EMPLOYEES, SUBCONTRACTORS, AND/OR AGENTS,        OR ANY THIRD PARTY, FOR ANY INDIRECT, INCIDENTAL, SPECIAL,        CONSEQUENTIAL, PUNITIVE DAMAGES, OR LOST PROFITS FOR ANY        CLAIM OR DEMAND OF ANY NATURE OR KIND, ARISING OUT OF OR IN        CONNECTION WITH THIS AGREEMENT OR THE PERFORMANCE OR        BREACH THEREOF.                THE AGGREGATE LIABILITY OF EITHER PARTY FOR ALL CLAIMS MADE IN        ANY CALENDAR YEAR UNDER OR IN CONNECTION WITH THIS        AGREEMENT, IRRESPECTIVE OF THE BASIS OF CLAIM (WHETHER        WARRANTY, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE) SHALL BE        LIMTED TO ****.            ****.         The Parties acknowledge that the fees paid hereunder reflect the foregoing         allocation of risk.     38.   DISPUTE RESOLUTION   38.1  The Parties desire to resolve certain disputes, controversies and claims arising        out of this Agreement without litigation.  Accordingly, except in the case of a suit,        action or proceeding to compel either Party to comply with the dispute resolution        procedures set forth in this Section the Parties agree to use the following        alternative procedure with respect to any dispute, controversy or claim arising out        of or relating to this Agreement or its breach.  The term "Dispute" means any        dispute, controversy or claim to be resolved in accordance with the dispute        resolution procedure specified in this Section.    38.2  At the written request of a Party, each Party shall appoint a knowledgeable,        responsible representative to meet and negotiate in good faith to resolve any        Dispute arising under this Agreement.  The Parties intend that these negotiations                                                                           53   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                   be conducted by non-lawyer, business representatives.  The discussions shall be         left to the discretion of the representatives.  Upon agreement, the representatives         may utilize other alternative dispute resolution procedures such as mediation to         assist in the negotiations.  Discussions and correspondence among the         representatives for purposes of these negotiations shall be treated as confidential         information developed for purposes of settlement, shall be exempt from         discovery and production, and shall not be admissible in any lawsuit without the         concurrence of all Parties.  Documents identified in, or provided with, such         communications, which are not prepared for purposes of the negotiations are not         so exempted and may, if otherwise admissible, be admitted in evidence in the         lawsuit.   38.3   If the negotiations do not resolve the Dispute within **** of the initial written        request, the Parties may pursue their available remedies at law or in equity.   39.   ORDER OF PRECEDENCE         All quotations, Authorization Letters, Change Orders, acknowledgments, and        invoices issued pursuant to this Agreement shall be subject to the provisions        contained in this Agreement.  In the event of any conflict between a specific term        or condition of this Agreement and a specific term or condition contained in an        Authorization Letter or Change Order, the specific term or condition of the        Authorization Letter or applicable Change Order shall control and take        precedence where the Agreement provides that this Agreement is subject to        such Authorization Letter or Change Order or where it is stated in a clear and        unambiguous matter in the Authorization Letter or Change Order that the specific        term or condition of the Exhibit is in conflict with the Agreement and takes        precedence.  The terms and conditions of this Agreement and its Exhibits will        control over any additional, conflicting or inconsistent terms contained in any        Authorization Letter, Change Order, quotation, acknowledgment or invoice,        unless agreed in writing by authorized representatives of the Parties; provided        that, the following provisions, as they to Services or Software ordered pursuant to         a particular Authorization Letter, can be changed by language contained in that         Authorization Letter or Change Order:  (i) the quantity, (ii) special quoted price,         (iii) payment terms, (iv) warranty period, or (v) delivery date.    40.  SECTION HEADINGS         The headings of the several sections are inserted for convenience of reference        only and are not intended to be a part of or to affect the meaning or interpretation        of this Agreement.   41.   SURVIVAL OF OBLIGATIONS         The respective obligations of the Parties under this Agreement that by their        nature would continue beyond the termination, cancellation or expiration, shall        survive any termination, cancellation or expiration, including, but not limited to,        obligations to indemnify, insure and maintain confidentiality.                                                                          54   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                              42.  CHOICE OF LAW AND JURISDICTION         The construction, interpretation and performance of this Agreement shall be        governed by and construed in accordance with the laws of the State of New York        without regard to any conflicts of law principles that would require the application        of the laws of any other jurisdiction and subject to the exclusive jurisdiction of the        federal or state courts in New York.  The Parties hereby consent to the exclusive        jurisdiction of the courts in the State of New York and agree to accept the service        of process of such courts such that any suit brought by either Party against the        other Party for claims arising out of this Agreement shall be brought in the        Supreme Court of the State of New York, New York County, and/or, if applicable,        the United States District Court for the Southern District of New York.  The        application of the United Nations Convention on Contracts for the International        Sale of Goods is specifically excluded from this Agreement.    43.   GIFTS AND GRATUITIES AND CONFLICTS OF INTEREST   43.1  Supplier certifies that, to the best of Supplier’s knowledge and belief, no        economic, beneficial, employment or managerial relationship exists between        Supplier and any employee of Verizon, or between Supplier and any relative of        an employee of Verizon, that would tend in any way to influence such employee        in the performance of his or her duties on behalf of Verizon in connection with the        awarding, making, amending or making determinations concerning the        performance of this or any other agreement.  43.2  The exchange or offering of any money, gift item, personal service, entertainment        or unusual hospitality by Supplier to Verizon is expressly prohibited.  This        prohibition is equally applicable to both Parties’ officers, employees, agents or        immediate family members.  Any violation of this provision constitutes a material        breach of this Agreement.                                                                            55   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                             44.  ENTIRE AGREEMENT         This Agreement together with its exhibits constitutes the entire agreement        between the Parties and cancels all contemporaneous or prior agreements,        whether written or oral, with respect to the subject matter of this Agreement.  No        modifications shall be made to this Agreement unless in writing and signed by        authorized representatives of the Parties   45.   SIGNATURES         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be        executed by their duly authorized officers or representatives.                VERIZON SOURCING LLC                SYNCHRONOSS                                            TECHNOLOGIES, INC.                         By: /s/ Marc C. Reed               By: /s/ Stephen G. Waldis                       Name: Marc C. Reed                 Name: Stephen G. Waldis                         Title: EVP & CAO                    Title: CEO                                      Date: 12/20/13                      Date: 12/16/13                                                                                           56   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                           EXHIBIT A – FORM OF AUTHORIZATION LETTER                                                     Date     Contact Name  Supplier Name  Address  City, State    Re:   This Application Service Provider Agreement between Verizon and       _____________________ (“Supplier”)                          Verizon Contract No.                 Authorization Letter Number:           Dear __________________:  This authorization is pursuant to the terms and conditions of the above-referenced  agreement (the “Agreement”).  The services to be performed are described in the attached “Statement of Work”  (Schedule 1) (“Project”).    The schedule of pricing is set forth in the attached Statement of Work.  The Verizon Project Leader will be: __________________________________  Invoices shall be billed on a monthly basis and addressed to:                          Verizon [INSERT APPROPRIATE ADDRESS]                          ______________________                          _______________________                          Attn: _________________________    The payment terms shall be as defined in the Agreement.  Supplier shall not issue its  invoice for the Project until the earlier of Verizon’s written acceptance of the Project or  the expiration of the acceptance period set forth in the Statement of Work.  The Services will be performed at the Verizon facilities located at ____________.  Travel  time to and from this location will not be billable.  Out-of-pocket expenses, authorized in  advance by Verizon, will be billed to Verizon in accordance with the Agreement.  The maximum amount authorized under this letter is $___________ (“Amount  Authorized”).  Services authorized by this letter will commence on _______________  and will continue until _____________, subject to the earlier of 1) completion of the  Project; or 2) termination of Services under the Agreement.  The Verizon Project Leader  will specify standards and/or other constraints to be applied to work being performed.                                                                          57  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                           Supplier will provide the Verizon Project Leader with a weekly status report indicating  hours worked by day and status of assigned tasks.  Please indicate your acceptance of this Authorization Letter by having it signed by an  authorized representative of Supplier and return a fully executed original and a copy of  your insurance certificate to ________________________ at the address stated above  with copies to ______________.                                            Sincerely,                                              (Name)                                            Verizon                                            (Title)    Agreed to and accepted by Supplier:  BY:   ____________________________  NAME: ____________________________  TITLE: ____________________________  DATE: ____________________________                                                                                                    58  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                                            EXHIBIT B – CHANGE REQUEST FORM                                                                                                      CHANGE REQUEST FORM   CUSTOMER PROVIDED INFORMATION  Originator’s Name:       Date:            Telephone:              Email:   Customer Name:                            Application Name:   Description of Problem or Desired Changes (Attach Additional sheets as Necessary):       Recommended Action/Solution (Attach Additional sheets as Necessary):    TO BE COMPLETED BY SUPPLIER   Functional Areas Affected:   Application Development        Production Operations              Project Management Office      Network Engineering   QA                                            Legal    Data Base Management          Other   Content Management   Marketing  Written description of the work Supplier anticipates performing in  order to effectuate such change(s) requested:        Schedule for commencing and completing such work:                                                                                   59         Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                  The number of person hours expected to be expended and the costs to Customer associated with such  change(s):    Analysis/Evaluation/Comments:    Reviewed/Verified By:    Project Manager   _________________________                 Date: ________________  Business Unit    Manager           _________________________                Date: ________________    Other             _________________________                Date: ________________     Change Management Team                 Target Release Date:  Recommendation:                           Work              Defer                  Close                                           Agreed to and accepted by Supplier:    Agreed to and accepted by Verizon:  BY:   ____________________________     BY:   ____________________________  NAME: ____________________________     NAME: ____________________________  TITLE: ____________________________    TITLE: ____________________________  DATE: ____________________________     DATE: ____________________________                                                                                                                                   60         Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                 EXHIBIT C-1 - BASELINE INFORMATION SECURITY REQUIREMENTS   This Baseline Information Security Requirements for Suppliers (“Exhibit”) defines certain  minimum physical and logical information security controls and requirements for  Suppliers performing services for or providing services to Verizon.  This Exhibit  supplements all security requirements set forth in the Agreement, and statements of  work and Orders thereunder (collectively or individually, the “Agreement(s)”).  This  exhibit does not limit other rights of Verizon or obligations of Supplier that otherwise exist  under applicable laws or agreements, including, but not limited to, additional security  requirements that may be imposed to address protection of specific information, specific  agreements, specific engagements, or changes in applicable law; and any security  protection requirements in such laws and agreements that are more stringent than those  set forth in this Exhibit shall replace and supersede the corresponding terms of this  Exhibit.  Any exceptions to the following requirements must be approved in writing by  Verizon in advance of implementation.  Unless expressly stated otherwise in the  Agreement(s), the terms of this Exhibit shall take precedence and prevail over any  conflicting or inconsistent provisions in the Agreement(s) only to the extent that they are  more stringent than the conflicting or inconsistent provisions of the Agreement(s).      As used in this Exhibit, compliance is required with those requirements that are  preceded by the words “shall” or “must.”  Those requirements that are preceded by the  word “should” are important, however Supplier is free to adopt alternatives that result in  information protection and security that is at least equivalent to conformance to those  requirements.     1) Definitions:       a) Information Definitions                   Confidential          Defined in the Agreement(s)  Information             CPNI Privacy One or more of the following CPNI related personal information  Information (CPNI-PI) data elements that may be combined with a person’s identifying                        information (name, telephone number, email address, driver’s                        license number, internet address, etc.):                           (1) Call detail records                         (2) Credit information                          (3) Internet Usage Information                          (4) Video Viewership Information                          Personally Identifiable Information capable of being associated with a particular  Information (PII)     individual through one or more identifiers, including but not                        limited to:                           (1) Military ID number                          (2) Passport Number (if applicable)                         (3) Work Visa Number (if applicable)                          (4) Access Codes, Pin, Password, challenge responses for                             individual user access to information systems                           (5) Mother's Maiden Name                                                                         61  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                                   (6) Federal Tax ID (Social Security Number) in many cases)                          (7) Driver’s license number                          (8)) State identification card number                         (9) An account number or credit or debit card number                         (10) Alien registration number                         (11) Health insurance identification number                                                 “Personally Identifiable Information” does not include publicly                        available information that is lawfully made available to the                        general public from federal, state, or local government records.                            Sensitive Information Any SPI, PII or CPNI-PI, collectively or individually.                          Sensitive Personal    One or more of the following personal data elements that may  Information (SPI)     be combined with a person’s identifying information (name,                        telephone number, email address, driver’s license number,                        internet address, etc.):                           (1) Social Security number,                          (2) driver’s license number or state-issued identification card                             number,                           (3) financial account number, or credit or debit card number,                            with our without any required security code, access code,                             personal identification number (PIN) or password that                             would permit access to that person’s financial account,                           (4) medical information (including, but not limited to, any                             information regarding an individual’s medical history,                             mental or physical condition, or medical treatment or                             diagnosis by a health care professional),                           (5) health insurance information (i.e., an individual’s health                             insurance policy number or subscriber identification                             number, any unique identifier used by a health insurer to                             identify the individual, or any information in an individual’s                             application and claims history, including any appeals                             records).                          “Sensitive Personal Information” does not include publicly                        available information that is lawfully made available to the                        general public from federal, state, or local government records.    b) General Definitions                   Industry Standard      “Industry Standard” means:                         ) actually used or adopted by a substantial number of comparable                         companies working with comparable information of a comparable                         nature;                         ) prescribed for use by an a governing industry standards body or                         group; or                         ) assessed by recognized experts in the field as acceptable and                         reasonable.                           Media Destruction      A process that destroys media on which information is located                                                                         62  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  

 

                                                                                                  and thereby makes recovery of such information impossible, and                         means “destroyed” as specified in Guidelines for Media                         Sanitization, National Institute of Standards and Technology,                         NIST Special Publication 800-88 (NIST 800-88).  Incineration,                         shredding and pulverizing are all permissible physical destruction                         methods in accordance with minimum standards specified in                         NIST 800-88.  Media that have been subject to such Destruction                         are “Destroyed” under these Baseline Security Requirements.                           Storage Encryption     Data encryption using at least using a non-proprietary industry                         standard algorithm that has not been broken (AES and 3Des are                         acceptable encryption methods).  Verizon Sensitive Information                         stored by Supplier shall be protected using the following                         minimum encryption standards:                                                  ****                           Sanitization           “Sanitized” or “sanitization” is a process that removes information                         from media or that renders such information irretrievable, such                         that data recovery is not possible, and means “sanitized” no less                         effectively than as specified in Guidelines for Media Sanitization,                         National Institute of Standards and Technology, NIST Special                         Publication 800-88 (NIST 800-88).                                                                                                                             63  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS    

 

                                                                           Secure Transportation  Transport utilizing a licensed, bonded, secure carrier that                         implements and adheres to a "chain of custody program",                         approved by Verizon, for tracking the movement and disposition                         of storage media or other equipment from receipt to final                         disposition, including tracking the following specific items:                          ) Ownership of the media                        ) Serial number of the media                        ) Verification at collection/pick-up location (owner/end user)                        ) Driver name, date and time Stamp                        )  Receipt at Supplier's location (date and time Stamp);                           Security Breach        The unauthorized acquisition or unauthorized use of unencrypted                         data, or the unauthorized acquisition or unauthorized use of                         encrypted data along with the confidential process or key that is                         capable of compromising the security, confidentiality, or integrity                         of such encrypted data.                           Strong Authentication  Authentication is a process for verifying an individual and/or the                         individual’s electronic identity.  An individual or the individual’s                         electronic identity can be certified by positively identifying any                         one of the following:                          Something they know (an authentication code), such as a                         password;                          Something they have (an authentication device), such as a                         proximity door card or a SecurID1 card; or                          Something they are (physical characteristics), such as facial                         features, retina pattern, or a fingerprint                                                        Strong Authentication occurs when a user is required to submit                         or use at least two of these identification indicators for                         verification.                           Supplier Devices       Servers, computers, mobile devices (other than mobile                         workstations), and communications equipment provided by                         Supplier in connection with work under the Agreement.                           Supplier Staff         Supplier staff includes employees, contract employees,                         temporary staff, authorized subcontractors, and employees,                         contract employees and temporary staff of the foregoing                         subcontractors.                           Transport Encryption   Transport encryption shall be no less secure than encryption                         consisting of SSL v3 or TLS protected by a minimum of 128 bit                         encryption with a 1024 bit keys using Verizon approved digital                         certificates.  Public certificates must be used for all web-based                         servers.  If other transport encryption methods are utilized, they                         must conform to these minimum standards.  2) Information Security Program Requirements:                                                              1 SecurID is a registered trademark of RSA Security, Inc.                                                                         64  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                                                Supplier is required to maintain an information security program that at minimum    includes the following:        a) One or more designated qualified employees must be responsible to maintain the       Supplier information security program.      b) Supplier must maintain written information security policies and standards that       address all information security requirements contained in the Agreement(s); that       are at minimum consistent in all material respects with the requirements of this       Exhibit and with applicable Industry Standards; and that support the       confidentiality, integrity and availability of Supplier systems, information and       business operations and the confidentiality, integrity and availability of Verizon       Sensitive Information and Confidential Information.  In addition, such policies and       standards must conform to all applicable data protection laws and regulations.    c) Supplier executive management must endorse information security polices and       standards;    d) Supplier Staff must receive periodic training (at least annually) to understand       Supplier’s security policies, and must acknowledge their adherence to Supplier’s       security policies.  Written certification of the periodic training and of the       acknowledgement of information security policies by Supplier employees and       permitted contractors must be maintained by supplier for inspection by Verizon       upon reasonable request.    e) Non-compliance with Supplier’s information security policies must result in       meaningful discipline.     f) Supplier Information Security program must include periodic education and       awareness messages to Supplier Staff that consist of relevant and timely       information to sensitize such staff to the importance of security for Sensitive       Information and Confidential Information, complying with applicable use       requirements and limitations, the proper use of Supplier’s security systems, and       the requirements of Supplier’s information security program.    g) Supplier must review its security measures on an ongoing basis, at least annually       and whenever there is a material change in business practices that may implicate       the security or integrity of records containing Sensitive Information.  Such review       will identify and assess reasonably foreseeable internal and external risks to the       security, confidentiality and/or integrity of any electronic, paper or other records       containing Sensitive Information.    h) Supplier must regularly monitor its security measures to identify and assess       reasonably foreseeable risks to the security, confidentiality and/or integrity of       Sensitive Information and to ensure that its information security program is       operating in a manner reasonably calculated to prevent unauthorized access to       or unauthorized use of Sensitive Information, and to ensure that the security       program continues to comply with applicable laws.  Supplier will promptly notify       Verizon of any findings of deficiencies in its security program and of its plans       mitigating such deficiencies, and Supplier will upgrade its information security       safeguards as necessary to minimize the risks associated with those       deficiencies.                                                                         65  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                              i) Supplier must, no less often than annually, audit each computer (PC or       workstation) that is connected to the Verizon corporate network or to Verizon       servers to verify that each such computer has the antivirus and firewall       capabilities and the periodic updates thereto required in this Exhibit.  Supplier       must immediately remedy any non-conforming computer before it is reconnected       with the Verizon corporate network or a Verizon server.  Supplier must maintain       the results of such audits, including records of non-conformities found and their       remediation, for no less than three years, and provide those results to Verizon on       request.     j) Supplier must flow down to all permitted subcontractors the obligation to comply       with this Exhibit.      3) Physical Security Requirements (Suppliers conducting information processing     of Verizon Sensitive Information at Supplier Premises)          a) Personnel Security       i) To the extent Supplier Staff are provided access to Verizon computers,          systems, servers, systems and resources (“Verizon Resources”) in order to          perform services for Verizon, Supplier must ensure that such staff are notified          that they are not entitled to privacy protection if they access such Verizon          Resources, and that access to and communications with Verizon Resources          may be monitored by Verizon.     b) Facilities Access Control       i) Supplier must have controls in place to allow only authorized individuals into          Supplier facilities where Verizon Sensitive Information and/or Confidential          Information is stored or is accessible.        ii) Facility access control systems must be secured from tampering,           circumvention or destruction.         iii) Facility access control systems must be maintained at all times in functional           order and must be updated or changed if they become compromised or           ineffective (for example, if keys are stolen, the locks should be changed).       iv) Facility access controls must be Industry Standard, and should include some          or all of the following elements:                  (1) Issuance of employee or contractor identification badges;                  (2) Use of smartcards or other electronic or physical identity                     verification systems (pin/key access locks, biometrics, etc.);                  (3) Use of dedicated security personnel who control access to the                     Supplier’s facilities;                   (4) 24x7 main lobby security guard station;                  (5) Locks on all ground floor windows;                  (6) Alarmed locks on all external doors; and                  (7) Use of CCTV on all entrances and entrances to data computing                     facilities, to include ninety (90) days of video storage.                                                                         66  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 v) Visitors accessing the facility must be managed in accordance with the          following practices:                  (1) Visitors to Supplier facilities must be registered in a visitor log.                      The log should document the visitor’s name, the firm                     represented, and the employee authorizing physical access on                     the log.  The log should be retained for inspection by Verizon for                     a minimum of three months, unless otherwise restricted by law.                  (2) Visitors should be issued temporary identification badges                     specific to the length of the expected visit in the facility.  Visitor                     identification badges must be returned upon the visitor’s                     departure.                   (3) Temporary visitor identification should be noticeably different                     from Supplier’s normal employee and contractor identification.                   (4) Supplier must inform employees of the approved formal policies                     for granting access to visitors at Supplier facilities.                   (5) Any visitor to a Supplier facility that accesses areas where                     Verizon Sensitive Information and/or Confidential Information is                     stored, processed or transmitted must be accompanied and                     supervised at all times by a Supplier employee who is                     specifically authorized to access confidential Verizon data.                   (6) Prior to granting a visitor to a Supplier facility access to any                     computer, server or system containing Verizon Sensitive                     Information and/or Confidential Information, access by each                     such visitor must be approved in writing by the designated                     Verizon contact, and the visitor must be positively identified as                     the person for whom Verizon has given such approval.                   (7) Under no circumstances may visitors be left unattended in an                     area where they have physical access to equipment that                     handles Verizon Sensitive Information and/or Confidential                     Information.    c) Facilities Access Monitoring:        i) The Supplier should utilize appropriate levels of monitoring equipment in          public areas of their facilities to ensure the auditing of Supplier facility entry          and exit activity can be performed.        ii) For all Supplier access control and monitoring installations, appropriate          safeguards and retention of records should be implemented to ensure the          integrity of the systems and the availability of the records if the need arises.    d) Separate Information Processing Environments       At a minimum, the following physical security and access controls must be       implemented and maintained throughout the terms of the engagement:       i) Verizon Sensitive Information and/or Confidential Information must not be          processed on servers that are accessible in general business areas of          Supplier’s facility and must be isolated in dedicated information processing          areas with independent physical, monitoring, environmental and health and          human safety systems (referred to as a “Computer Room”).                                                                          67  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 ii) Access to any information processing area where Verizon Confidential and/or           Sensitive information is processed must be restricted to authorized Supplier           personnel only.        iii) Supplier must implement physical access policies and procedures to ensure           that physical access is revoked when it is no longer needed or appropriate           (for example, immediately removing access for separated employees or           removing access for employees who are no longer authorized to access           Verizon Confidential and/or Sensitive Information).  Removal of Physical           Access should occur in a timely manner not to exceed 24 hours.         iv) Supplier must employ technical and organizational mechanisms to prevent           unauthorized copying of Sensitive Information within Information Processing           Environments. These mechanisms shall include disabling/restricting local           ports so as to prevent downloading of data onto removable USB drives, MP3           players or similar devices, restrictions on uploading or file transfer from the           facility to unauthorized recipients, and a prohibition on the use of cameras           (excluding CCTV security unit) and other screen capture devices.       e) Computer Room Physical Security Requirements        Computer room facilities where Verizon Sensitive Information and/or Confidential       Information is stored, processed or transmitted must implement the following       information security controls:       i) All computer room doors must be secured to prevent unauthorized access          into the room.        ii) Each computer room door must have signs on both sides indicating it is to be           closed and locked with a contact to notify if it is found unsecured.         iii) Supplier Staff must be instructed to immediately report unsecured doors.        iv) Supplier must implement a reliable process of designating staff access to          Computer Rooms.        v) Supplier Staff should only be authorized to enter a Computer Room for a          legitimate business need and a record of the individual’s identity, justification          and duration of access should be maintained.         vi) A separate electronic access control system utilizing strong authentication          should be installed on Computer Room doors that will only allow authorized          personnel access to the room, unless access to the room is controlled 24          hours a day, 7 days a week, by a guard.                  (1) The access control system must be secured against tampering.                   (2) The access control system must log the entry and exit of staff for                     each time the door is opened. Entry and exit logs should contain                     a reliable time stamp, room location and identification of the                     person who gained access or exited the room.                   (3) The access control system should alert security staff in the event                     that a secured door has been open beyond a reasonable                     amount of time (for example, by being propped open and                     unattended).                                                                           68  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 vii) Supplier should periodically review access records to ensure that access           controls are being enforced effectively. Any discrepancies or unauthorized           access must be investigated immediately by Supplier information security           personnel and reported to the Verizon Sponsor.        viii) Supplier should periodically review CCTV video storage to ensure that           access controls are being enforced effectively to prevent unauthorized entry.            Any unauthorized access must be investigated immediately by Supplier           information security personnel and Supplier must provide Verizon notice of           such breach of security in accordance with this Exhibit.     f) Asset Disposal and Reclamation       i) Upon conclusion or termination of Supplier’s work for Verizon, at Verizon’s          option Supplier must either:                   (1)  Sanitize or Destroy all copies of all Verizon information                     maintained under the Agreement or an applicable Order or                     Statement of Work (collectively, “work agreement”), including all                     backup and archival copies, or                   (2) return to Verizon all copies of all Verizon information maintained                     under work agreement, as well as all backup and archival                     copies.       ii) When no longer required for performance under the Agreement and prior to          disposition, recycle, or resale, electronic and non-electronic (hardcopy) media          containing Verizon Sensitive Information and/or Confidential Information shall          be rendered unreadable and unrecoverable by Sanitization or Destruction.         iii) All non-electronic media containing Verizon Sensitive Information and/or          Confidential Information must be Destroyed utilizing a cross cut shredder.         iv) All electronic media containing Verizon Sensitive Information and/or          Confidential Information shall be destroyed or rendered unusable when such          information is no longer required for performance under this agreement and          prior to disposition, recycle or resale, using methods that prevent access to          information stored in that type of media.  At minimum, media containing          Verizon Sensitive Information and/or Confidential Information shall be          “sanitized” in accordance with NIST Special Publication 800-88.  Although          Verizon prefers that data be disposed of in a manner consistent with          “Destruction”, at a minimum, electronic media that at any point contains          Verizon Confidential and/or Sensitive Information must be disposed in a          manner consistent with “Sanitization” requirements in the NIST standard.           Additionally the following minimum standards must be met:                  (1) All tape must be incinerated or degaussed with a degausser that                     meets the performance standards provided by the US National                     Security Agency (NSA) which can be found at                     http://www.nsa.gov/ia/_files/Government/MDG/NSA_CSS-EPL-                    9-12.PDF.                  (2) When Sanitizing magnetic or flash media, the preferred method                     of Sanitization is to perform a Secure Erase (to be used only for                     ATA Drives and SCSI drives, where technically feasible -                     available from the University of San Diego CMRR, at                                                                         69  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                              http://cmrr.ucsd.edu/people/Hughes/SecureErase.shtml).                      Alternatively, if Secure Erase is technically inappropriate or is                     not used, a minimum of a three pass block erasure shall be                     utilized that removes the data from magnetic disk media by                     sequentially overwriting all addressable locations in the following                     manner, and then verifying the same by a disk read: (i)                     overwriting with a random pattern; (ii) overwriting with binary                     zeros; and (iii) overwriting with binary ones.  The National                     Institute of Standards and Technology and Federal Agencies                     Security Practices initiative (FASP) have specified the Active                     KillDisk software, http://www.killdisk.com/eraser.htm, as a                     compliant sanitization tool for IDE, SCSI and ATA drives.                   (3) Optical Disk media must be destroyed.                  (4) Removal of non-functional electronic storage media: Non-                    functional electronic storage media (e.g., a failed drive) may not                     be capable of Sanitization, and therefore must be either returned                     to Verizon or Destroyed.  When removing non-functional                     electronic storage media from a Verizon or Supplier facility,                     Supplier may Destroy the media onsite prior to removal as                     specified herein.  If the electronic storage media are not                     Sanitized or Destroyed, and must be removed from the Verizon                     or Supplier premises without such sanitization or destruction,                     Supplier shall utilize Secure Transportation to a Verizon or other                     disposal site.  Supplier shall track disposition of the media (e.g.,                     Destroyed by Supplier, Sanitized by Supplier, conveyed to a                     Verizon-authorized third party for Destruction, etc.) and provide                     to Verizon a Certificate of Sanitization (COS) and/or Certificate                     of Destruction (COD) upon completion of the Sanitization, or                     Destruction.       v) Required Records:  Supplier shall maintain records at the serial number level          for four years of all receipts and disposition which identify the media (or          computing assets) being processed.  All records pertaining to the disposition          of each of the media or computing assets must be available for audit and          verification by Verizon during this four year period. The Supplier must provide          reports monthly to Verizon     g) Shipment of Sensitive Information:         i) Non-Electronic Sensitive Information:  Whenever possible, Sensitive          Information in non-electronic form should be converted to electronic form for          secure transmission in accordance with this Exhibit, and all non-electronic          hard copies Destroyed as specified in this Exhibit.  If such conversion is          impracticable, Sensitive Information in non-electronic hardcopy form must be          shipped in the United States using U.S. Postal Service Registered Mail with          return receipt, or the substantial equivalent thereof by a licensed overnight          courier or delivery service.  Any shipment of Sensitive Information in non-         electronic (hardcopy) form between a United States and foreign point must be          specifically pre-approved by Verizon in writing and must be shipped in          accordance with such instructions as Verizon provides in its approval.                                                                            70  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 ii) Electronic Media containing Sensitive Information:  If electronic media           containing Sensitive Information are shipped, the Sensitive Information must           be encrypted using Storage Encryption unless shipped in accordance with           the Secure Transportation requirements herein.    4) Logical Security Requirements (Suppliers conducting information processing     of Verizon Information)     a) Logical Access Control       Supplier must develop logical access controls for all computing systems handling       Verizon Confidential and/or Sensitive Information. Logical Access controls must       include:       i) The assured enforcement of authentication controls to limit access to          information systems to only those individuals who are currently active and          who are authorized to access a given information system.        ii) A secure and reliable method of enforcing authorization controls which limit          access to Verizon Sensitive Information and Verizon Confidential Information          to only previously-authorized Supplier Staff.       iii) Use of the “principle of least privilege” model for access, enabling Supplier          personnel to access only such information and resources as are necessary          when they perform under the Agreement for the role assigned to the          authorized user,       iv) A process of controlling User IDs and other identifiers to ensure they are          unique among users and are not shared.           Note:  Sensitive Personal Information must not be used as an authentication          or an authorization mechanism to obtain a password, or for log in rights or for          access to any application, system, website or database owned or operated by          Verizon or on Verizon’s behalf.   The last four digits of a Social Security          number, passwords, PINs, challenge responses and/or access codes are          permitted to be used for such purposes in conjunction with other data.       v) A process which will immediately terminate access by an employee or          contractor who no longer requires access to perform under the Agreement          (e.g., a terminated or reassigned employee/contractor).       vi) Periodic review of access, authorization and other applicable monitoring logs          on all systems to ensure the access control and authentication systems are          performing as expected.       vii) Processes that utilize industry standard password selection and aging          procedures to limit opportunities for compromise of password security.  Such          password procedures should include but not be limited to the following:                  (1) A process to ensure that no user or information system may                      utilize Supplier-supplied default account passwords.                  (2) A secure method of assigning and selecting passwords or other                      unique identity validation values, such as biometric registration                      values or the issuance of one-time-password token devices.                                                                          71  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                           (3) Limit repeated access attempts by locking out the user ID after                      not more than six (6) attempts with a thirty (30) minute                      minimum lockout duration                  (4) Verification of user identity before password resets;                  (5) All passwords must be have first-time passwords set to a                      unique value for each user and change immediately after the                      first use;                  (6) Inactive accounts must be disabled after 90 days;                  (7) Password must be changed at least every ninety (90) days;                  (8) Passwords must be at least eight (8) characters and must                      include letters and numbers;                  (9) Supplier must require users to submit passwords that are                      different than any of the last four (4) passwords the individual                      has used;                  (10) If a session has been idle for more than fifteen (15) minutes,                      require the user to re-enter the password to reactivate the                      terminal.                    (11) Control and encrypt with a 1-way hash, data security                      passwords to ensure that such passwords are kept in a location                      and/or format that does not compromise the security of the data                      they protect.    b) Access Logging and Monitoring       i) Supplier must maintain electronic logs of persons accessing Verizon          Confidential and/or Sensitive Information depicting the details of the access          and transactional changes made.         ii) Logs must be maintained for inspection by Verizon for a minimum of ninety          (90) days.         iii) Logs shall be stored centrally on Supplier owned or controlled systems that          cannot be altered by users or privileged users.         iv) At a minimum logs shall capture the following information for all access to          Verizon Confidential and/or Sensitive Information:                  (1) Unique user ID;                   (2) Login/Logout time;                  (3) System/data set accessed;                  (4) Failed login attempts;                  (5) Activity (for privileged users such as data base administers,                     system administrators, etc.) including changes to permissions,                     changes to data, etc.)        v) Access logs shall be reviewed by Supplier at least daily and provided to          Verizon for inspection upon reasonable request.  Alternatively, log parsing          tools which automatically generate alerts based on information security rules                                                                         72  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                    may be utilized provided that alerts are reviewed and appropriate action is           taken, at least daily.    c) Network and Communications Security       The Supplier must develop and implement network and communications security       policies, procedures and technology to control and detect potential network and       communications information security system issues and failures.        At a minimum, Supplier must have:       i) Firewall controls at appropriate points in the Supplier network to control the          ingress and egress of communications and data to environments containing          Verizon Sensitive Information and/or Confidential Information. At a minimum,          Network Firewalls must protect all connections to open, public networks.           System Security Patches and updates for Firewalls must be implemented in a          timely manner not to exceed 30 days following release.       ii) Supplier must employ industry standard intrusion detection systems (IDS) for           any environment into which Sensitive Information will be placed.                    (1) Network IDS must be placed on network connection points                     between the Supplier environment containing the Verizon                     Confidential and/or Sensitive Information and other network                     environments.  Alternatively, Host- Based IDS may be placed on                     all computing assets storing, processing or transmitting Verizon                     Confidential and/or Sensitive Information.                    (2) IDS must be configured with business rules appropriate to the                     environment and must be configured to generate alerts                     immediately.                    (3) Signatures and software for IDS must be kept current and up to                     date.                    (4) IDS alerts must be reviewed at least daily by trained security                     personnel.       iii) System Segmentation                  (1) Information systems storing, processing or transmitting Sensitive                     Information must be logically isolated from systems that handle                     other companies’ information. For example, Supplier must use                     separate database server instances for the processing of                     Verizon data or must use separate virtual operating system                     images than those used or accessed by other companies who                     the Supplier may also service.                    (2) At no time may Verizon Sensitive Information and/or Confidential                     Information be housed on a server shared by companies other                     than the contracting Supplier.  For example, a shared web                     server that is used by several companies and maintained by an                     Internet Service Provider must not be used to house Verizon                     data. This requirement also applies to “cloud-based” services.                  (3) Internet-facing web servers must be dedicated to this task, and                     must not host internal (intranet) applications for the Supplier.                                                                         73  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 iv) Transport Encryption for all electronic communications that contain Sensitive          Personal Information, and Transport Encryption for Verizon Confidential          and/or Sensitive Information that traverses networks outside of the direct          control of the Supplier or Verizon (including, but not limited to, the Internet,          WI-FI and mobile phone networks).        v) Transport encryption of all data containing Sensitive Information to be          transmitted wirelessly.       vi) Policies, procedures and appropriate technology solutions to ensure all          systems receive and apply the most current security updates on a regular          basis.        vii) No remote access to Sensitive Information, from home or other location that          is not at the premises of the Supplier or Verizon shall be permitted without the          specific authorization of Verizon, and such authorization will be conditioned          on measures that maintain the security of such Sensitive Information and that          prevent unauthorized access thereto, or unauthorized copying or retention          thereof.  All remote access to Sensitive Information must require Strong          Authentication and Encrypted transmissions.       viii) Logical Security Requirements when connecting Supplier controlled devices          to Verizon Networks                  (1) All Supplier Devices to be used to connect to the Verizon                     Network must be either provided by Verizon or alternative must                     be owned or leased by the Supplier (personally-owned                     equipment may not be used to perform work for Verizon).                    (2) Supplier personnel accessing Verizon networks must not have                     any concurrent access to other non-Verizon networks from their                     workstation(s) while connected to Verizon’s Network unless that                     access is through the Verizon Network.                  (3) All computing device remote access to the Verizon Network                     must utilize approved Verizon Virtual Private Networks including                     Client-based access, transport encryption and strong                     authentication.                  (4) Supplier Devices must not traverse any unencrypted wireless                     networks while attaching to the Verizon network.  All wireless                     connections should utilize transport encryption utilizing WPA2 in                     enterprise or PSK mode at a minimum (WEP encryption is not                     permitted).    d) Information Systems and Device Management       i) General Requirements                  (1) All Supplier Devices used to store, process or transmit Verizon                     Confidential and/or Sensitive Information, and/or to provide                     information services to Verizon in connection with work under                     the Agreement, must either be provided by Verizon or                     alternatively, must be owned or leased by the Supplier                     (personally-owned equipment may not be used to perform work                     for Verizon).                                                                           74  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                           (2) All assets controlled by Supplier used to perform work for                     Verizon must be tracked using an inventory management                     system including the following information.                       a. Name, location, retention schedule, and Verizon-assigned                         data classification level (as described in the Verizon Data                         Classification in Section 6 of CPI-810) of the information                          asset such as a database or file system.                       b. A knowledgeable individual owner of each information                          asset (the default owner of an information asset is its                          creator)                       c. Computer systems (i.e. Servers – Host Name/IP Address)                          that house Verizon data                       d. Storage encryption status for any Sensitive Information                          (both at rest and on any back up media).                  (3) All Supplier Devices used to perform work for Verizon should be                     centrally managed by the Supplier.                    (4) All Supplier Devices used to perform work for Verizon must be                     managed for the application of operating system and applicable                     software patches. Critical operating system and software                     security patches must be installed in a timely manner not to                     exceed one (1) month following release for public availability.                   (5) All Critical Security Patches for workstations shall be installed                     within 7 days of publication from the software or hardware                     vendor.                  (6) All Supplier Devices shall have current antivirus software                     installed (if technically feasible) and configured to check for                     updates on a daily basis at a minimum.                  (7) All Supplier Devices that connect to the Internet shall have a                     personal firewall or its equivalent enabled and configured to only                     allow connections to authorized business applications. By                     default, the personal firewall must use a default deny rule that                     blocks inbound traffic that is not specifically allowed in the                     course of a specific communication                  (8) All Supplier mobile computing devices (notebook computers,                     PDAs, etc.) and portable storage devices (portable drives, flash                     drives, thumb drives, optical disc media, etc.) used to store or                     process Verizon Sensitive Information and/or Confidential                     Information must have “whole disc” or other device Storage                     Encryption enabled for internal as well as peripheral and                     removable media. Encryption keys for mobile computing devices                     and portable storage devices must be kept in escrow and                     sufficiently protected by the Supplier to enable forensic recovery                     of data on any protected device.   Whole disk Encryption should                     be implemented with a Pre-Boot authorization configuration.                   (9) Supplier personnel must not communicate, store or process any                     Verizon confidential data on any email, storage or processing                                                                        75  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                              repository that is outside of the direct ownership and control of                     Supplier. For example, the use of personal web email accounts,                     web-based backup services, Internet-based document editing or                     public cloud-based computing services are prohibited without                     express written permission from the Verizon Sponsor.                   (10)    Sensitive Information data should not be stored or used in                     testing or other non-production environments.  If this use is                     required, an authorized exception permitting such use must                     granted in writing by Verizon, and such data must either be                     (a) masked so that it no longer meets the definition of Sensitive                     Information, or (b) protected using controls against unauthorized                     access, copying or viewing that are comparable to those                     required for the protection of Sensitive Information in production                     environments.       ii) Data Storage Requirements                  (1) Data Obfuscation                       a. All Sensitive Personal Information and Personally                          Identifiable Information at rest must be encrypted using                          Storage Encryption.  CPNI-PI should also be encrypted                          using Storage Encryption.  Storage Encryption of the                          device on which such information is stored will satisfy                          these requirements.                        b. Data Replacement (e.g. SAFE) or field level masking may                          be acceptable methods of obfuscation.  Such methods                          must be approved in writing by Verizon prior to                          implementation.                  (2) Encryption Key Management                      a. Supplier shall implement key and seed management                         procedures that enable Verizon Confidential or Sensitive                         Information to be retrieved if the person who encrypted                         such data is unable or unwilling to decrypt the data.                        b. Keys and seeds shall be properly protected, using either                         physical procedures including very limited access control,                         separation of duties and logging/monitoring key access or                         encryption no less robust than is required for Supplier’s                         own most highly confidential or Sensitive Personal                         Information and not accessible by unauthorized personnel.                        c.  Additionally, Supplier shall require split keys for all key                          encryption such that one person does not have the full key                          for any data encrypted at rest.  Generally, Encryption Keys                          should also be encrypted.                       d. Supplier shall maintain a written and tested process for key                          rotation on a periodic basis (at least annually) or in event of                          compromise (does not apply to keys for data stored in                          offsite backup).        iii)   Data Backup Requirements                                                                        76  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                           (1) Verizon Sensitive Information and/or Confidential Information                     must be backed up on separate tapes/drives than data                     belonging to or accessed by other companies.                   (2) Backups must be encrypted with Storage Encryption that                     accommodates key escrow by supplier                  (3) Backup media must be physically secured against theft or                     tampering and must implement physical controls that comply                     with all applicable state and federal requirements.                    (4) Chain of custody records must be maintained for all backup                     media containing Verizon Sensitive Information and/or                     Confidential Information moving to offsite storage of backups                   (5) Supplier must ensure that all backup media is tracked and must                     ensure that contractual data destruction requirements can be                     met.  5) Coding Practices     a) Supplier must disclose to Verizon all open source code utilized to develop       custom code and provide Verizon an opportunity to review all such open source       code prior to its utilization within or with custom developed code.     b) Supplier shall implement peer review throughout the development process and       make use of code review tools to ensure secure coding and to identify malicious       code or code misconfigurations.  6) Business Continuity Planning/Disaster Recovery (BCP/DR) for Suppliers     performing Information Processing at Supplier Locations     a) So that the business processes may be quickly re-established following a       disaster or outage, Supplier must maintain an updated inventory of all critical       production systems and supporting hardware, applications and software,       projects, data communications links, and critical staff at both primary and       secondary sites.     b) To the extent Verizon has contracted for BCP/DR services from Supplier,       Supplier must ensure preparation, maintenance, and regular test of a BCP/DR       plan that ensures that all critical computer and communication systems will be       available in the event of emergency or a disaster, and meet service level and       recovery time and recovery point objectives.    c) To the extent Verizon has contracted for BCP/DR services from Supplier,       BCP/DR plans must be tested at least annually, and all test results must be       periodically reported to Verizon.    d) Any emergency event-related disruption of business activities must be reported       forthwith to a designated Verizon contact.  7) Notification of Breach of Security     a) Supplier must maintain an internal or third-party professional security service with       the capability of investigating, responding to and mitigating any potential or actual       security incidents within Supplier’s area of operations that involves Verizon       Sensitive Information and/or Confidential Information throughout the period of                                                                         77  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 time in which Supplier maintains such information in its systems or facilities (or        those of permitted subcontractors).      b) The supplier’s incident response team must have documented formal procedures        that comply with Industry Standards and applicable laws addressing investigation        and response to information security incidents.  The procedures must include        documentation describing the steps taken to correct discovered breaches.      c) Supplier’s information security policies and procedures must require the        immediate reporting of suspected or actual violations of policy to an appropriate        Supplier security contact.      d) Supplier must establish and maintain an easily understandable procedure for        Supplier Staff to report security incidents to an appropriate Supplier security        contact, and for such information to be reported to a designated Verizon contact.     e) Supplier must as soon as practicable, not to exceed two hours following        discovery of an unauthorized disclosure or security breach, notify and update        Verizon via electronic mail to security.issues@verizon.com such of such        disclosure or breach, with confirmation sent to the contract notice addressee set        forth in the Agreement by the means set forth therein, of:        i) Any Security Breach or other actual or threatened unauthorized access or          release of Verizon Sensitive Information or Confidential Information or to the          systems holding or providing access to such Verizon information.          ii) Any occurrences of viruses and malicious code, not mitigated by deployed           detection and protection measures, on any workstation or server used to           provide services under the Agreement or applicable statement of work or           Order thereunder.       f) Following notification to Verizon in accordance with the previous subsection, or        notification to Supplier by Verizon of a security incident or breach that Verizon        reasonably believes was caused by Supplier, Supplier must: provide regular        updates to Verizon; investigate the incident or potential breach of security; report        the results of such investigation to Verizon; cooperate with Verizon in any        Verizon investigation of the breach and the effects thereof; allow Verizon to        inspect Supplier computers that Verizon reasonably believes caused or were        involved in the breach; and implement corrective measures to prevent future        breaches.     g) Notwithstanding its notification(s) to Verizon, Supplier must comply with all        applicable notification requirements imposed by law, including but not limited to        notification requirements under federal and state laws protecting privacy.  8) Audit Compliance and Verizon’s Right to Audit Supplier Operations     a) Supplier must be prepared to provide necessary confirming documentation in       support of Verizon’s external audits (such as Sarbanes-Oxley or PCI) upon        Verizon’s request pursuant to the terms of the Agreement.     b) Supplier must permit Verizon to audit its security controls periodically, not more        than once per calendar year or other period specified in the Agreement, and        reasonably cooperate with Verizon in such audit.     c) Supplier must provide copies of relevant security policy, process, and procedure        documents to Verizon for review and audit purposes upon request. Verizon may                                                                         78  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 review and recommend reasonable changes, and Supplier must amend the        policies or respond with mitigating controls and responses within a reasonable        time period for mutually agreed to changes.                                                                                                   79  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                              EXHIBIT C- 2 – VERIZON WIRELESS NETWORK SECURITY REQUIREMENTS         1. DEFINITIONS    The terms defined in this Section shall have the meanings set forth below whenever they  appear in this Exhibit, unless the context in which they are used clearly requires a  different meaning or a different definition is described for a particular Section or  provision:      1.1.     “Confidential Information” shall mean: Verizon customer data and       proprietary network information, data pertaining to Verizon systems, networks,       services, and the security controls implemented on those systems and networks,       data pertaining to Verizon employees, Verizon proprietary and/or trade secret       information, and any other information or data labeled as confidential or       proprietary under the terms of the Agreement.    1.2.     “Industry-standard” shall mean: an accepted set of best practices that       are (1) used or adopted by a substantial number of companies that are engaged       in a similar type of business (“comparable companies”) to manage information of       a similar type; (2) prescribed for use by a governing industry standards body or       group; or (3) established by recognized experts in the field as being acceptable       and reasonable.    1.3.     “Penetration Test” shall mean: part of the Risk Assessment Process       whereby highly skilled, experienced and trained person(s), known as “white-hat       hackers”, engage in a coordinated and planned attack on computer systems and       networks to discover potential vulnerabilities and ensure the logical controls can       withstand deliberate attempts to be circumvented.     1.4.     “Program”  shall mean: the documented and exercised processes and       procedures for accomplishing common objectives and monitoring such       accomplishment, which may be updated from time to time.     1.5.     “Risk Assessment Process” and “Risk Assessment”  shall mean: a       documented and exercised process used to identify the risks to system security       and determine the probability of occurrence, the resulting impact, and identify       additional safeguards or modifications that would eliminate and/or adequately       mitigate this impact.    1.6.     “Risk Management Program”     shall mean: the documented and       exercised process for identifying, controlling, and mitigating information system       related risks. It includes Industry-standard qualitative and/or quantitative Risk       Assessment Process; cost-benefit analysis; and the selection, implementation,       testing, and evaluation of safeguards, including a determination of steps required       to meet the four security goals of Security Assurance.     1.7.     “Security Assurance” shall mean: grounds for confidence that the four       security goals (i.e., integrity, availability, confidentiality, and accountability) have       been adequately met by a specific computer system.  “Adequately met” includes       (1) functionality that performs correctly, (2) sufficient protection against       unintentional errors (by users or software), and (3) sufficient resistance to       intentional penetration or bypass.                                                                         80  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                1.8.    “Threat-source” shall mean: either (1) intent and method targeted at the        intentional exploitation of a Vulnerability or (2) a situation and method that may        accidentally trigger a Vulnerability.      1.9.    “Threat Analysis” shall mean: the examination and documentation of        threat-sources against system Vulnerabilities to determine the potential threats        applicable to a specific computer system in a particular operational environment.     1.10.    “Vulnerability” (or “Vulnerabilities” in the plural) shall mean: a flaw or         weakness in computer system functionality, design, implementation, internal         controls, or security procedures that could be exercised (accidentally triggered         or intentionally exploited) and result in a security breach or a violation of the         system’s security policy.  2. GENERAL REQUIREMENTS          2.1.     This Security Requirements Exhibit (“Exhibit”) is applicable to all relevant        aspects of Supplier’s performance under the Agreement , including without        limitation the development, offering, use and/or maintenance of any service,        software or other product there under, and any future releases, versions,        updates, enhancements and modifications thereto (“Software” or “Hardware”, as        the case may be).             2.2.     Supplier will at all times implement and maintain Industry-Standard        administrative, physical and technical security controls, which will be followed in        all relevant aspects of Supplier’s performance under the Agreement.  Such        controls will be sufficient in nature and scope to protect (1) the confidentiality,        integrity and availability of Verizon’s Confidential Information as well as (2) the        availability and integrity of Verizon’s service, network and operations.               2.3.     Supplier shall comply with the administrative, physical and technical        security controls as described in this Exhibit and in Verizon’s Security Standards        & Policies (“Verizon Policies”).  Supplier shall request from Verizon all revised        and additional Verizon Policies applicable to Supplier’s Software and Hardware        before execution of each new work order.     2.4.     Notwithstanding anything to the contrary, for such changes or additions to        Verizon Policies applicable to Supplier’s Software and Hardware, the parties        shall review such documentation for change and exceptions that impact the        Software or Hardware.  A Change Request may be required for implementation        by Supplier of any such changes to the Verizon Policies.     2.5.     For each given Authorization Letter, Verizon Policies applicable to the        Software and Hardware supporting the Platform under such Authorization Letter        shall be set forth in an exhibit to the Authorization Letter as well as any        exceptions to this Exhibit or other terms and conditions agreed upon by the        Parties pertaining to Verizon Policies or the Information Security Policy.       3. CONFIDENTIAL INFORMATION          3.1.     Supplier warrants that Verizon’s Confidential Information shall only be        used for the purposes specified under the Agreement.  Supplier’s obligation to                                                                          81   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                 protect Verizon’s Confidential Information in accordance with the provisions of       this Exhibit shall survive indefinitely.  Upon expiration or termination of the       Agreement, Supplier shall promptly return and/or securely destroy all Verizon       Confidential Information except as required by law.               3.2.     Supplier shall take appropriate measures to secure Verizon Confidential       Information, both during transit and in storage by using Industry-standard       mechanisms for protection (e.g., encryption).  This protection shall also include       all forms of portable media (e.g. flash/usb drive, laptop, CD, DVD, Blu-ray,        portable hard drive, cell/smart phone, MP3 player and etc.)    4. INFORMATION SECURITY POLICIES AND PROGRAM       Supplier shall implement and maintain a comprehensive and Industry-standard Risk     Management Program, including without limitation the following:             4.1.1. Supplier shall have an information security policy which describes the            security and privacy controls that Supplier currently implements in its            operations to comply with all applicable Verizon Policies and this Exhibit            (“Information Security Policy”).  Supplier shall establish and maintain a Risk            Management Program to implement its Information Security Policy,  which            shall include without limitation the following:           4.1.1.1. A Risk Assessment Process which shall ensure that Supplier’s                 operating environment, development environment, systems,                 applications, networks and procedures are regularly evaluated to                 identify and remediate security Vulnerabilities.            4.1.1.2. A Program for intrusion and security breach detection, prevention                 and incident response.           4.1.1.3. A Program for configuration management of systems, network and                 applications.           4.1.1.4. A Program for the implementation and administration of logical                 access control(s) to data, systems and network.           4.1.1.5. A Program for the implementation and administration of physical                 access control(s) to facilities and data.           4.1.1.6. Supplier shall, at minimum, annually review the Risk Management                 Program using an internal or external auditor to assess compliance                 with the requirements under its Information Security Policy.                    5. SECURE DEVELOPMENT LIFECYCLE                     Supplier’s controls associated with the development, pre-production testing and    delivery of any and all Software and Hardware shall include, without limitation,    Supplier’s obligation to:             5.1. Implement Industry-standard security controls for its operating             environment, systems, networks and all facilities in which the Software is             being developed and/or hosted.                                                                        82  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                  5.2. Develop, implement, and comply with Industry-standard secure coding             best practices.         5.3. Establish processes, including as appropriate, using Vulnerability source             code scanners, operating system security benchmarking tools, web             application scanners or other tools or techniques, or information acquired             through Industry-standards organizations, to assess the  Software or             Hardware for security Vulnerabilities prior to production release.          5.4. Follow Industry-standard practices to mitigate and protect against all             known and reasonably predictable security Vulnerabilities, including but             not limited to: (1) unauthorized access, (2) unauthorized changes to             system configurations or data, (3) disruption, degradation, or denial of             service, (4) unauthorized escalation of user privilege, (5) service theft, and             (6) unauthorized disclosure of Confidential Information.         5.5. Supplier must ensure all security features and configurations survive any             update, modification or upgrade to Software and Hardware or are replaced             with features and configurations that meet the requirements of this Exhibit,             unless prior written consent is obtained from Verizon.            6.  SECURITY ASSURANCE        Supplier shall maintain a Risk Assessment Process which demonstrates the Security    Assurance of Supplier’s Software and Hardware.  This Process shall include, but is    not limited to:             6.1. Supplier must, at Verizon’s cost, coordinate and conduct a Risk             Assessment of its Software and Hardware using a Certified Verizon third-            party security testing vendor.  This Risk Assessment must be completed             **** prior to the initial delivery of Supplier Software and Hardware,             respectively or as otherwise agreed upon by the Parties in writing.              Supplier shall thereafter, at Verizon’s cost and discretion, repeat this Risk             Assessment at the earlier of (1) every major version release or (2) annually             for all Software and Hardware deployed in the Verizon network or hosted             by Supplier. This Risk Assessment shall include the following:             6.1.1. A Threat Analysis of the Software and Hardware             6.1.2. A Penetration Test of the Software and Hardware             6.1.3. A Risk Assessment of the administrative, technical, logical and                   physical security controls of the pertinent operating environment,                   systems, networks, and facilities where Software and Hardware is                   hosted, if hosted by Supplier.         6.2. Supplier must resolve all high and medium risk Vulnerabilities identified in             the Risk Assessment Process prior to production release except as             otherwise specified by Verizon in writing. At Verizon request, Supplier shall             provide to Verizon a documented resolution timeline **** before production             release for all remaining Vulnerabilities to be remediated post production.              This document shall include the date by which each Vulnerability will be             remediated.                                                                       83  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                    6.3. Verizon may request a copy of the scope of work from the above third-             party Risk Assessment Process (Section 6.1).  Supplier shall deliver this              document to Verizon within **** of the initial request.           7. SECURITY BREACH AND INCIDENT RESPONSE                7.1. Supplier shall establish and maintain documented escalation processes for              any security breaches and incident responses, including procedures for              notifying Verizon within twenty-four (24) hours after a security breach is              discovered where such breach may negatively affect Verizon’s reputation,              Confidential Information, systems, network, services, data, assets, and/or              customers.             7.2. Supplier shall not notify any other parties that an actual or suspected              security breach affects Verizon without prior written consent by Verizon,              except to the extent required by law.           7.3. Supplier shall cooperate and provide information as required by Verizon              and any authorized consultants, contractors, attorneys, or other third              parties hired by Verizon to investigate a security breach of Supplier’s              operating environment.           7.4. In the event of a security breach affecting Verizon, Supplier must issue a              post mortem report to Verizon within forty-eight (48) hours of breach              discovery that includes (1) the identification of all Verizon information              potentially compromised by such breach; (2) the actions taken by Supplier              to mitigate damage caused by the breach; and (3) safeguards              implemented to prevent a recurrence of such breach.    8. RIGHT TO RISK ASSESSMENT            8.1. Verizon, at its sole cost, reserves the right to perform a Risk Assessment              of Supplier Software and Hardware.  At the discretion of Verizon, the Risk              Assessment may occur on an annual basis, or upon each new release of              Software and/or Hardware and may include without limitation, Vulnerability              assessments and Penetration Tests of: (1) the Software and/or Hardware;               (2) the underlying infrastructure and operational environment in which the              Software and/or Hardware is running or hosted; (3) network and facilities              related to the operation or maintenance of the Software and/or Hardware;              and (4) Supplier’s administrative, technical and/or physical controls related              to such Software and/or Hardware.  For Risk Assessments or Penetration              Tests that require Supplier’s involvement, resources, facilities or systems,              the parties will  mutually agree as to (1) the extent of Supplier’s              involvement; (2) those resources, facilities or systems of Supplier’s that              would be required; and (3) the schedule for such Risk Assessment or              Penetration Tests.                          8.2. Verizon’s asserted right to conduct its own Risk Assessment shall in no              way replace or substitute for Supplier’s own Risk Assessment Process or              the requirements contained within this Exhibit.  At the discretion of Verizon,                                                                         84   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential   ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN   REQUESTED WITH RESPECT TO THE OMITTED PORTIONS  

 

                                                                                                                          a third party security vendor may be used           to conduct such Verizon Risk                  Assessment.                                                                                                                     85  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                           9. VULNERABILITY MANAGEMENT                Supplier shall implement and maintain a comprehensive and Industry-standard    Vulnerability Management Program.  Supplier shall maintain dedicated employee(s)    to monitor pertinent channels of public vulnerability disclosure (e.g. the NIST    National Vulnerability Database) which affect Supplier Software or Hardware.  This    Program shall include, but is not limited to (1) the underlying platform (e.g., operating    system, database product, web server and etc.); (2) all third-party and (3) open-   source software included as part of Supplier Software and Hardware. This Program    shall include, but is not limited to:                     9.1. Supplier shall provide dedicated employee(s) to liaison with the Verizon             Vulnerability Management personnel.                      9.2. Supplier shall resolve identified Vulnerabilities in Supplier Hardware and             Software at Supplier expense.                      9.3. For Supplier Software or Hardware within the Verizon network and             managed by Verizon, Supplier shall deliver to Verizon a regression tested             patch within **** from the date the Vulnerability was initially disclosed or             the date Supplier was notified by Verizon.                      9.4. For Supplier Software or Hardware hosted within the Verizon network and             managed by Supplier, Supplier shall implement in production a regression             tested patch within **** from the date the Vulnerability was initially             disclosed or the date Supplier was notified by Verizon.                  9.5. For Supplier Software or Hardware hosted externally to the Verizon             Network, Supplier Shall implement in production a regression tested patch             within ****  from the date the Vulnerability was initially disclosed or the date             Supplier was notified by Verizon.                                                                         86  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential  ****CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN  REQUESTED WITH RESPECT TO THE OMITTED PORTIONS    

 

                                                                                                                        EXHIBIT C-3 CLOUD SECURITY REQUIREMENTS                                                                      Production / Non-Production Segregation of Cloud Duties: Production and non-          production cloud environments shall be kept separate to prevent unauthorized access or           changes to information assets, particularly in the case of Cloud and virtualization           administrators with privileged access.                       Wireless Security. Policies and procedures shall be established and mechanisms           implemented to protect access to cloud architectures from unauthorized wireless access,           including the following:            1) Firewalls implemented and configured to restrict unauthorized traffic            2) Essential security settings enabled with strong encryption for authentication and           transmission, replacing vendor default settings (e.g., encryption keys, passwords, SNMP           community strings, etc.).            3) Logical and physical user access to wireless access points restricted to authorized           personnel            4) The capability to detect the presence of unauthorized (rogue) wireless network           devices for a timely disconnect from the network                       Shared Networks and/or Applications. Access to systems with shared infrastructure           shall be restricted to authorized personnel in accordance with security policies,           procedures and standards. Networks and/or applications shared with external entities           shall have a documented plan detailing the compensating controls used to separate           network traffic and application access between organizations.                     Clock Synchronization. A standard NTP time source must be used to synchronize the          system clocks of all cloud-based information processing systems within the organization          or explicitly defined security domain to facilitate tracing and reconstitution of activity          timelines.                     Mobile Code. Mobile code (i.e. code shared between cloud and client devices or          software) shall be authorized before its installation and use, and the configuration shall          ensure that the authorized mobile code operates according to a clearly defined security          policy. All unauthorized mobile code shall be prevented from executing.                   GDSVF&H\3541367.2                                                              87                    Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential             

 

                                                                                                                                                              EXHIBIT D - DISASTER RECOVERY PLAN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         GDSVF&H\3541367.2                                                                                                88                             Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential                 

 

                                                                             EXHIBIT E – COMPLIANCE WITH MINORITY, WOMAN-OWNED, AND SERVICE-     DISABLED VETERAN BUSINESS ENTERPRISES (MWDVBE) UTILIZATION                         Primary Supplier Commitment  A.    Supplier Commitment.        1.    The Supplier (hereinafter “Primary Supplier”) agrees to provide              opportunities for suppliers identified and Certified as a Minority, Woman,              and Service-Disabled Veteran - owned and controlled Business              Enterprises (hereinafter “MWDVBE”), in accordance, at a minimum, with              the terms and conditions of this Exhibit.        2.    In addition, if the scope of this Agreement includes the provision of              products or performance of services for or in conjunction with a Verizon              Federal government agreement, the then-current Federal Acquisition              Regulations (FAR) requirements regarding MWDVBE subcontracting and              reporting shall also apply.        3.    In the event that a change in ownership results in a change of Supplier or              subcontractor’s status as a Certified MWDVBE, Supplier shall notify              Verizon in writing within **** of such change.  B.    Definitions.        1.    Certified - Currently certified as MWDVBE by an authorized certifying             body, such as the National Minority Supplier Development Council             (NMSDC) or its affiliate regional councils, the Women’s Business             Enterprise National Council (WBENC) or its affiliate regional councils, the             California Public Utility Commission (CPUC) Clearinghouse, or other             similar local, state, or federal certifying body.       2.    Control - Having overall fiscal/legal responsibility and exercising the             power to make policy decisions.       3.    Owned - At least fifty-one percent (51%) of the business or, in the case of             a publicly owned business, at least fifty-one percent (51%) of the stock is             owned by a minority, woman or service-disabled veteran. Transfer of             ownership to or purchase of an existing business by a minority, woman,             or service-disabled veteran by a non-minority who remains actively             involved in the operation of the business does not qualify as a MWDVBE.        4.    Minority–owned Business Enterprise (MBE) - A business concern in             which at least fifty-one percent (51%) of the ownership and control is held             by individuals who are members of a minority group and of which at least             fifty-one percent (51%) of the net profits accrue to members of a minority             group.  Such persons include, but are not limited to, Black Americans,             Hispanic Americans, Asian Pacific Americans (persons with origins from             Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the former             U.S. Trust Territory of the Pacific Islands (Republic of Palau, the             Commonwealth of the Northern Mariana Islands, Republic of the Marshall             Islands, Federated States of Micronesia) Laos, Cambodia (Kampuchea),             Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei,             Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru); Subcontinent             Asian Americans (persons with origins from India, Pakistan, Bangladesh,                                                                        89    

 

                                                                                              Sri Lanka, Bhutan, the Maldives Islands or Nepal); Native Americans              (American Indians, Eskimos, Aleuts, and Native Hawaiians); and              members of other groups designated by the U. S. Small Business              Administration as minorities.        5.    Women-owned Business Enterprise (WBE) -   A business concern              which is at least fifty-one percent (51%) owned and controlled by a              woman or women; or, in the case of any publicly owned business, at least              fifty-one percent (51%) of the stock is owned by a woman or by women.               Such women's business enterprise shall further be classified as either              minority or non-minority women-owned business, depending upon the              greater portion of ownership.        6.    Vietnam Era Veteran-owned Business Enterprise (VBE) - A business              concern that is at least fifty-one percent (51%) owned and controlled, or in              the case of a publicly owned business, at least fifty-one percent (51%) of              the stock is owned, by an owner or owners who are veterans of the U.S.              military, ground, navel, or air service, any part of whose service was              during the period August 5, 1964 through May 7, 1975, who (1) served on              active duty for a period of more than one hundred and eighty (180) days              and were discharged or released with other than a dishonorable              discharge, or (2) were discharged or released from active duty because of              a service-connected disability.  “Vietnam-Era Veteran” also includes any              veteran of the U.S. military, ground, navel, or air service who served in              the Republic of Vietnam between February 28, 1961 and May 7, 1975.       7.     Service-disabled Veteran-owned Business Enterprise (SDVBE) - (1)              A business concern that is (a) at least fifty-one percent (51%) owned by              one or more service-disabled veterans or, in the case of any publicly              owned business, at least fifty-one percent (51%) of the stock of which is              owned by one or more service-disabled veterans or, in the case of a              veteran with a permanent and severe disability, the spouse or permanent              caregiver of such veteran.  (2) “Service-disabled veteran” means a              veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-             connected as defined in 38 U.S.C. 101(16).        8.    Persons with Disabilities-owned Business Enterprise (DBE) - a              business concern that is at least fifty-one percent (51%) owned and              controlled, or in the case of a publicly owned business, at least fifty-one              percent (51%) of the stock of which is owned by an owner or owners who              are disabled as defined by the Americans With Disabilities Act (ADA).               This classification can also include agencies that employ fifty-one percent              (51%) or more disabled persons.  C.    Supplier Diversity Utilization Plan.        1.    The Primary Supplier shall submit a Supplier Diversity Utilization Plan              (“Plan”) for approval by Verizon prior to the execution of this Agreement.               The Plan must include a statement that the Primary Supplier will (i)              achieve the MWDVBE Percent Commitment as defined in Section E,              below, entitled “Primary Supplier MWDVBE Percent Commitment,” and              (ii) report results utilizing the reporting method described below in Section              D, entitled “Reporting.”                                                                         90  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                 2.    The list of MWDVBE suppliers to be used by the Primary Supplier in its              (Contract-Specific) Plan form shall constitute the following:              (a)  A representation by the Primary Supplier to Verizon in regard to                   the MWDVBE supplier(s) that (a) it intends to use the firm for the                   work specified in the Plan; (b) on the basis of information known to                   it and after reasonable inquiry, it believes such MWDVBE                   supplier(s) to be technically and financially qualified to perform the                   work specified, and that the firm is available to perform the work;                   and (c) the MWDVBE supplier(s) identified is currently Certified as                   an MWDVBE by an authorized certifying body.             (b)   A commitment that the Primary Supplier will enter into a contract                   with each such MWDVBE supplier (or approved substitutes) in                   accordance with its Plan.             (c)   A commitment by the Primary Supplier that it will not substitute a                   MWDVBE supplier listed in its  Plan without prior written                   notification to Verizon.  Unless the Primary Supplier has a                   reasonable belief that use of a designated MWDVBE supplier will                   potentially cause personal injury or damage to property, or that                   such MWDVBE Supplier has engaged in illegal or unethical                   behavior, no substitution(s) of MWDVBE supplier(s) designated on                   the Plan form may be made without notifying Verizon in writing,                   citing the specific reason(s) for substitution.  D.    Reporting.        1.    The Primary Supplier shall report quarterly MWDVBE expenditures by              using the “Prime Supplier MWDVBE Quarterly Report” and reporting              format specified on the Verizon website at              http://www22.verizon.com/suppliers/.  For assistance with such reporting,              contact Verizon Supplier Diversity at DSR@verizon.com.        2.    The Prime Supplier MWDVBE Quarterly Report shall include a)              MWDVBE expenditures specific to Verizon contracts (herein, "Direct              Expenditures"); and b) Verizon's prorated share of the Primary Supplier’s              non-contract specific MWDVBE expenditures (herein, "Indirect              Expenditures").  Verizon's prorated share of such Indirect Expenditures              for the applicable calendar quarter shall be equal to the percentage              derived from the following formula:  Sales to Verizon / Sales to all              customers.           3.    Such reports shall be submitted by no later than thirty (30) days following              the end of each calendar quarter.         4.     This report is intended to provide a mechanism to monitor the Prime              Supplier’s compliance and progress in achieving its MWDVBE              commitments as set forth in this Exhibit.       5.     The Primary Supplier will provide:              (a)  A list of the name(s) and address(s) of the Certified MWDVBE                   suppliers the Primary Supplier has identified to be used in support                   of this Agreement;                                                                         91  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                       (b)  A description of the products/services or scope of work performed                   by MWDVBE suppliers; and             (c)   The percentage or volume of contract work performed by each                   such firm.  E.    Primary Supplier MWDVBE Percent Commitment.  The Primary Supplier shall engage the services of Certified MWDVBE suppliers for an  amount equivalent to at least seven percent (7%) of dollars spent under this Agreement  during the first year of the Term.    F.   Primary Supplier Compliance; Standards and Remedies.        1.    Compliance Standards.  Verizon has the right to determine compliance              by the Primary Supplier with the Plan and the MWDVBE Percent              Commitments (hereinafter collectively the “MWDVBE Commitments”)              established in this Exhibit.  Verizon may determine that the Primary              Supplier is achieving its MWDVBE Commitments by examining reports              received from the Primary Supplier, performing on-site inspections,              conducting progress meetings regarding work required by the Agreement,              contacting involved MWDVBE suppliers, or through other Verizon actions              taken in the ordinary course of administering the Agreement.        2.    Updates.  An annual update of the Primary Supplier’s Plan will be              required to ensure compliance with this Agreement’s provision for              continuous year-over-year improvement.       3.     Commitments Not Achieved.  In the event that the Primary Supplier’s              MWDVBE Commitments hereunder are not achieved and the Primary              Supplier cannot demonstrate to the reasonable satisfaction of Verizon              that commercially reasonable efforts were made to accomplish such              MWDVBE Commitments, such failure shall constitute default by the              Primary Supplier, and Verizon reserves the right and shall have the option              to invoke the termination provisions of this Agreement.  Such              documentary evidence of commercially reasonable efforts shall include              but are not limited to a) advertisement in general circulation media, trade              publications and small business media soliciting the performance of              services of Certified MWDVBE suppliers related to the field of business              regarding the products and/or services which are the subject matter of              this Agreement; b) written notification to Certified MWDVBE suppliers              requesting proposals specific to the products provided for and/or services              performed under this Agreement; and c) written acknowledgment that the              Certified MWDVBE suppliers’ interest in providing such products and/or              performing such services is under consideration.  The foregoing rights are              in addition to, and not in limitation of, any other remedy Verizon may have              at law or in equity.  Verizon may also require that, upon request, the              Primary Supplier submit additional documentation and information              concerning the Primary Supplier’s performance in achieving its MWDVBE              Commitments and compliance with its Plan.        4.    Cure Period for Commitments Not Achieved.  Should the Primary              Supplier continue to fail in achieving the MWDVBE Commitments of this              Agreement, including as amended, after having been given notice of such              failure to meet its MWDVBE Commitments, and failing to cure such                                                                         92  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                       MWDVBE Commitments within thirty (30) days of receiving such notice              by achieving its requirements, the Primary Supplier shall be in default and              no further cure shall be permitted.       5.    Supplier Report Card.  In addition, the Primary Supplier’s ability to             achieve its MWDVBE Commitments shall reflect upon and shall             contribute to the Primary Supplier’s overall grade on the Supplier Report             Card or other performance measurement(s).                                                                                                                93  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                             EXHIBIT F- NONDISCLOSURE AGREEMENT    1.    To facilitate discussions, meetings and the conduct of business between the         parties with respect to this Agreement, it may be necessary for one party to         disclose confidential information to the other.   All information of any type or         character that is either disclosed to the other party or with which the other party         comes into contact shall be considered as the confidential information of the         disclosing party including without limitation technical, customer, personnel         and/or business information in written, graphic, oral or other tangible or        intangible form (“Confidential Information”). Such Confidential Information may        include proprietary material as well as material subject to and protected by        laws regarding secrecy of communications or trade secrets.                  2.    Each party acknowledges and agrees as follows:                      a.    All Confidential Information acquired by either party from the other shall              be and shall remain the exclusive property of the source;                b.    To inform the receiving party, in advance of any disclosure of              Confidential Information, in non-confidential and non-proprietary terms,              of the nature of the proposed disclosure, and to afford the receiving              party the option of declining to receive the Confidential Information;                      c.    Information which is disclosed orally shall not be considered              Confidential Information unless it is reduced to writing or to a written              summary which identifies the specific information to be considered as              Confidential Information, and such writing is provided to the receiving              party at the time of disclosure or within thirty (30) days;                      d.    To receive in confidence any Confidential Information; to use such              Confidential Information only for purposes of work, services or analysis              related to the matter of mutual interest described above and for other              purposes only upon such terms as may be agreed upon between the              parties in writing;                       e.    To limit access to such Confidential Information to a party’s employees,              contractors, and agents who (i) have a need to know the Confidential              Information in order for such party to participate in the matter of mutual              interest described above; and (ii) have also entered into a written              agreement with the receiving party which provides the same or greater              protections to any Confidential Information provided hereunder.  Upon              request, Supplier shall provide a copy of such agreements to Verizon;              and                      f.    At the disclosing party's request, to return promptly to the disclosing              party or to destroy any copies of such Confidential Information that is in              written, graphic or other tangible form, and provide to the disclosing              party a list of all such material destroyed.                                                                                     94   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                           3.    These obligations do not apply to Confidential Information which,        as shown by reasonably documented proof:          a.    Was in the other's possession prior to receipt from the disclosing party;              or                b.    Was received by one party in good faith from a third party not subject to              a confidential obligation to the other party; or                c.    Now is or later becomes publicly known through no breach of              confidential obligation by the receiving party; or                d.    Is disclosed to a third party by the source without a similar              nondisclosure restriction; or                e.    Was developed by the receiving party without the developing person(s)              having access to any of the Confidential Information received from the              other party; or                f. Is authorized in writing by the disclosing party to be released or is           designated in writing by that party as no longer being confidential or           proprietary.    4.    Supplier agrees that either party may disclose Confidential Information to an        Affiliate, subject to the terms and conditions set forth herein.  For purposes of this        Agreement, an Affiliate shall be defined as an entity that controls, is controlled        by, or is under common control with such party.  5.    Other than as required by law or as set forth in 2(e) or under the Agreement,        neither party shall, without the other party’s prior written consent, disclose to any        person, or make a public announcement of, the existence of discussions or        negotiations or any of the terms relating to the matter of mutual interest        described above or any Confidential Information.     6.    If a party (“Ordered Party”) receives a request to disclose any Confidential        Information of the other party, whether pursuant to a valid subpoena or an order        issued by a court or regulatory body (“Ordering Party”), and on advice of legal        counsel that disclosure is required by law, then prior to disclosure, the Ordered        Party shall (i) notify the other party of the terms of such request and advice, (ii)        cooperate with the other party in taking lawful steps to resist, narrow, or eliminate        the need for such disclosure, and (iii) if disclosure is nonetheless required, work        with the other party to take into account the other party’s reasonable        requirements as to its timing, content and manner of making or delivery and use        best efforts to obtain a protective order or other binding assurance from the        Ordering Party that confidential treatment shall be afforded to such portion of the        Confidential Information as is required to be disclosed. The foregoing is without        limitation of the other party’s ability to seek a protective order or other relief        limiting such disclosure; in such a case, the Ordered Party shall cooperate in        such efforts by the other party.                                                                           95  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                             7.    Supplier acknowledges that the proprietary data, know-how, software or other         materials or information obtained from a party under this Agreement may be         commodities and/or technical data that may be subject to the Export         Administration Regulations (the “EAR”) of the United States Department of         Commerce as well as trade and economic sanctions subject to the Trading With         the Enemy Act (TWEA) and the International Emergency Economic Powers Act         (IEEPA) of the Office of Foreign Asset Control within the Department of         Commerce, and that any export or re-export thereof must be in compliance with         the EAR, TWEA and IEEPA. Each party agrees that it shall not export or re-        export, directly or indirectly, either during the term of this Agreement or after its         expiration, any commodities and/or technical data (or direct products thereof)         provided under this Agreement in any form to destinations in or nationals of         Country Groups D:1 or E, as specified in Supplement No. 1 to Part 740 of the         EAR, and as modified from time to time by the U.S. Department of Commerce, or         to destinations that are otherwise controlled or embargoed under U.S. law in         contravention of the EAR or any of the above statutes.    8.     It is agreed that a violation of any of the provisions of this Agreement will cause         irreparable harm and injury to the non-violating party and that party shall be         entitled, in addition to any other rights and remedies it may have at law or in         equity, to seek an injunction enjoining and restraining the violating party from         doing or continuing to do any such act and any other violations or threatened         violations of this Agreement.  Absent a showing of willful violation of this         Agreement, neither party shall be liable to the other, whether in contract or in tort         or otherwise, for special, indirect, incidental or consequential damages including         lost income or profits of any kind, even if such party has been advised of the         possibility thereof.  In no event shall either party be liable to the other for punitive         or exemplary damages.                                                                           96   Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential     

 

                                                                                                          EXHIBIT G                    SUMMARY OF VERIZON’S GUIDELINES                FOR EVALUATING CRIMINAL RECORD REPORTS    1.    Information regarding criminal offenses that is provided by or received about        candidates who are under consideration for assignment to provide services to        Verizon (the “Candidate”) will not necessarily bar their assignment with Verizon.         Each Candidate must be considered on a case-by-case basis.    2.    If a Candidate has a criminal record, Supplier must determine whether the        disclosed criminal conviction will impair the Candidate’s ability to successfully        perform the services that he/she may be assigned.  Thus, a conviction may only        be used to disqualify a Candidate from assignment if the criminal conviction is        related to the nature of the services that he/she may be assigned to perform for        Verizon.  When determining whether a Candidate should be disqualified from        assignment to Verizon due to a criminal record, Supplier must consider the below        Mitigating Factors.  Although this is not an exhaustive list of factors, these factors        must be evaluated along with any other associated extenuating circumstances.  3.    These additional guidelines should be used in combination with the Mitigating        Factors listed in Section 4 below:           •  Look at each case individually.           •  Consider each factor and decision point carefully.           •  Consider state law requirements - for example, certain states may not              allow consideration of misdemeanor convictions.           •  If additional information is needed, actual court records may be pulled              and reviewed prior to making a decision to hire.          Additionally, consult Supplier’s background check supplier or counsel if a        Candidate has:            •  Expunged or Sealed Records (Note:  certain states do not permit inquiries              into expunged or sealed records)           •  Parolee Status           •  Pending Charges/Arrests (Note:  certain states do not permit inquiries into              arrests that have not resulted in a conviction)           •  Juvenile Records                                                                                                    97  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                           4.    Mitigating Factors          Factors to be                                 Decision Points         Considered                                  For all criminal convictions, the nature of the job applied                                 for must be considered.  This factor considers the nature                                 and gravity of the offense as it relates to the nature of the                                 position sought.                                 Is the nature of the conviction such that there is a concern                                 for the safety of Verizon employees/customers, protection                                 of company assets, or the confidentiality/sanctity of                                 Verizon records including confidential consumer                                 information?                                 •  For jobs involving direct personal contact with         Job Relatedness - Nature                                    customers, other employees, or the public, careful         of job and crime                                    consideration should be given to whether a Candidate                                    convicted of a crime involving violence presents a                                    significant risk to Verizon, its employees or its                                    customers.                                 •  Criminal convictions involving integrity, fraud or theft of                                    property could weigh against Candidates applying for                                    positions with financial responsibility (e.g., cash, etc.)                                    and responsibility for handling proprietary and                                    confidential information (e.g., customer &/or employee                                    information).                                  Was the Candidate a teenager or close to one when s/he                                 committed the crime?  If the Candidate was a minor at the         Age at time of crime                                 time of the criminal offense, this could weigh in the                                 Candidate’s favor           Efforts at rehabilitation and                                 If sentencing required probation, community service or         successful completion of                                 other, has the Candidate completed the service?         sentencing          Time elapsed since                                 If significant time has elapsed since the crime was         conviction or final                                 committed, this could weigh in the Candidate’s favor.         adjudication                                  If the crime was committed under extenuating         Candidate’s explanation of circumstances, which would not be present in the         reason crime was        workplace, this could weigh in the Candidate’s favor.          committed               Court records should be pulled and reviewed to validate                                 Candidate’s explanation.                                                                          98  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

                                                                                  Successful employment   Has the individual held steady employment since the         following criminal      conviction?  Satisfactory employment history since the         conviction              crime was committed could weigh in the Candidate’s favor.                                  Has the Candidate had additional convictions?         Number of criminal                                 If the Candidate is a repeat offender, this could weigh         convictions                                  against the Candidate.                                                                                                         99  Application Service Provider Agreement - Synchronoss and Verizon Proprietary and Confidential    

 

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