Document:

Exhibit 10.26

 

MASTER SERVICES AGREEMENT

 

This Master Services Agreement (“Agreement”) is made as of March,     ,
2005 (“Effective Date”), between Pegasus
Solutions, Inc. (“Pegasus”) and Cendant
Travel Distribution Services Group, Inc. (“Customer”).

 

In consideration of the covenants and agreements set forth herein and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

 

1.0 DEFINITIONS

 

1.1           All
capitalized terms not otherwise defined in this Agreement shall have the
following meanings:

 

(a)           “Affiliate” means
(i) any entity that is now or hereafter owned, leased or managed by Customer
that provides hotel distribution services; or (ii) any entity that is
controlled by Customer with access to the Services.

 

2.0 SERVICES

 

2.1           Services. Pursuant to a mutually agreed
plan, schedule of implementation and service level addendum, if applicable, and
subject to the performance by Customer of its duties set forth herein, during
the term of this Agreement, Pegasus will provide to Customer the services (“Services”)
described in the service schedules and applicable service level addendums (“Service
Schedules”) attached hereto and made a part of this Agreement.

 

2.2           Additional Services. Pegasus is not
obligated by this Agreement to provide any services to Customer other than the
Services. Notwithstanding the foregoing, if Pegasus introduces any additional
products or services to any of its customers in the future, Pegasus will
promptly give notice to Customer of such additional products or services and
will, upon Customer’s request, provide Customer with such products and services
pursuant to an agreed upon schedule and agreed upon pricing. If Pegasus and
Customer execute a service schedule for additional services, such additional
services shall thereafter be deemed to be Services, and such service schedule
shall thereafter be deemed to be a Service Schedule, shall be made a part of
this Agreement and shall be subject to the terms and conditions contained
herein. If Pegasus provides any services to Customer pursuant to a work order,
statement of work or similar document, such document being executed by both
Customer and Pegasus, which services are not subject to a Service Schedule,
such services shall be provided pursuant to the terms and conditions of this
Agreement and the contents of the governing work order, statement of work or
similar document, provided that if a conflict exists between the terms and
conditions of this Agreement and the contents of the governing work order,
statement of work or similar document, the terms and conditions of this
Agreement shall control.

 

3.0 GENERAL REQUIREMENTS

 

3.1           Cooperation. Customer agrees (a) to use
commercially reasonable efforts to cooperate fully with and provide reasonable
support for, and cause each Affiliate to cooperate fully with and provide
reasonable support for, Pegasus personnel with respect to the implementation,
maintenance and delivery of the Services in accordance with the terms of this
Agreement; (b) at Customer’s sole expense, to procure, operate, maintain and
manage (or cause each Affiliate to procure, operate, maintain and manage) at
each Affiliate’s premises and Customer’s permitted facilities, if any, such
hardware, software, equipment and communications capabilities and lines as may
be reasonably necessary for Customer and each Affiliate to access and receive
the Services  (and, to the extent
that the parties agree in writing that Pegasus will provide such communications
capabilities and lines to Customer and/or each Affiliate, to pay Pegasus for
the same as mutually agreed to in writing); and (c) that each party shall be
solely responsible for the performance of local and wide-area networks,
dedicated leased data lines, dial up lines, and all other communication
interfaces and related equipment used for any connections or interfaces
required to perform its obligations under this Agreement.

 

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3.2           Modifications and Enhancements.

 

(a)           Pegasus
reserves the right to modify or enhance the Services, and related processes and
procedures, at any time in its sole discretion, provided that (i) no such
modification or enhancement affects the functionality of the Services in a
material adverse manner, and (ii) Pegasus provides Customer, at no charge to
Customer, the same training, if any, that is provided at no charge to its other
customers receiving the same modification or enhancement, but in no event less
than the training provided at no charge to customers receiving the same
modification or enhancement; and (iii) Customer has the right to terminate the
Agreement if Customer determines that such modification or enhancement affects
the functionality of the Services in a material adverse manner, or will result
in additional cost to Customer. Customer agrees to cooperate and will use
commercially reasonable efforts to cause all Affiliates to cooperate with
Pegasus in connection with any modification or enhancement of the Services. Pegasus
will provide reasonable documentation relating to enhancements or modifications
to the Services. Pegasus will not be obligated to provide, maintain or support
any release or version of any Service other than the then-current release or
version of such Service or the release or version immediately preceding the
then-current release or version.

 

(b)           Pegasus
will use commercially reasonable efforts to implement each new release and
version of each Service in accordance with a mutually agreed implementation
schedule and shall provide Customer with reasonable notice in the event of any
delay in the implementation schedule; provided, however, Customer may not delay
implementation of any new release or version of a Service beyond the release
date of any subsequent release or version of such Service without Pegasus’
consent, which shall not be unreasonably withheld. Pegasus will provide
Customer with thirty (30) days notice of any reasonable changes (due to
upgrades, enhancements or discontinuing support) that Customer and/or
Affiliates must make to their third-party hardware, software, equipment and
communications capabilities and lines so that Customer and/or the Affiliates
can continue to access and receive the Services; provided, however, Customer
has the right to terminate the Agreement if it does not agree to any such
changes.

 

3.3           Accuracy of Data. Each party shall
cause all information provided by such party or its Affiliates to the other
party to be complete, accurate, and current, and in the form and format
required by the other party as previously provided to the party providing the
information  or as otherwise
mutually agreed to between the parties.

 

3.4           Extraordinary Service Needs. Customer
shall use commercially reasonable efforts to advise Pegasus in writing a
reasonable period of time prior to the occurrence of any events, including
without limitation special promotions, group or tour events and marketing
activities, that Customer knows will require significantly increased support or
levels of service from Pegasus or involve significantly increased usage of any
of the Services by Customer or any Affiliate.

 

3.5           Network Security.

 

(a)           Customer
shall (i) upon Pegasus’ request, identify the individuals given access by
Customer to Pegasus’ networks and systems and notify Pegasus of any changes to
such group; and (ii) implement and maintain policies and procedures
consistent with Customer’s responses to the most recent Pegasus-provided
network security survey. Pegasus shall have the right to deny any individual’s
access to Pegasus’ networks and systems due to security concerns; provided,
however, Pegasus has provided Customer with security requirements in advance
and shall provide Customer with the nature of such security concern and such
denial shall not be unreasonable.

 

(b)           To
the extent that Pegasus performs any of the Services via such electronic means,
and/or has access to Customer’s or its Affiliates’ electronic mail, Web site,
computer systems or networks, and/or other Internet systems, Pegasus shall
implement industry-standard security to protect Customer’s and its Affiliates’
computer systems, network devices and/or the data processed thereon against the
risk of penetration by, or exposure to, a third party via any system or feature
utilized by Pegasus in performing such work and/or accessing such systems. Unless
otherwise specified in the applicable Service Schedule(s), such protections
shall include, but not be limited to, (i) securing the computer systems and
network devices, (ii) protecting against intrusions of operating systems or
software, (iii) implementing access controls on all data, software or other
file-system objects limiting access to only authorized users,

 

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(iv) ensuring the integrity of all data stored or processed, and (v)
preventing the loss of data processed or transferred.

 

(c)           Pegasus
shall monitor all service, equipment, test environment, and communication links
for security breaches, violations and suspicious activity, and shall notify
Customer immediately in the event of any security breaches, violations or
suspicious activity

 

4.0 FEES AND COSTS

 

4.1           Fees and Costs. The parties agree to
pay the fees and costs for the Services as set forth in the Pricing Schedule
attached hereto and made a part of this Agreement.

 

4.2           Taxes. Customer shall pay all sales,
use, excise, value added and similar taxes and duties levied by any taxing
authority upon this Agreement or the services provided by Pegasus pursuant to
this Agreement other than taxes that are levied upon Pegasus’ net income or
payroll (collectively, “Taxes”).

 

4.3           Payment of Fees and Costs.

 

(a)           Except
as otherwise provided in the Pricing Schedule attached hereto or in any Service
Schedule, all undisputed amounts payable pursuant to this Agreement are due
within thirty (30) days of the date of receipt of each billing statement and
shall be paid in U.S. Dollars. If any amount is past due pursuant to this
Agreement, in addition to any rights of termination provided herein, the past
due party agrees to pay interest on such amount at the rate of (***) per month,
or the maximum rate allowed by law, whichever is lower; provided, however,
Customer shall not be charged interest if Pegasus is delinquent in
electronically deducting its fees.

 

(b)           A
party shall notify the other party in writing, within thirty (30) business days
of receipt of a billing statement, of any good faith dispute concerning any
amount reflected as due on such billing statement. Such notice shall include a
written statement identifying in reasonable detail the facts relating to the
dispute, the amount disputed and the relief requested or proposed. The dispute
of an amount due shall not relieve any obligations to pay all undisputed
amounts in accordance with this Agreement. The parties shall use good faith
efforts to resolve any such disputes in a timely manner.

 

4.4           Annual Increase. Deleted by agreement.

 

4.5           Third-Party Costs and Fees. Customer
acknowledges that any third party costs passed on by Pegasus to Customer may
not include discounts, rebates or credits received by Pegasus. All third party
charges shall be set forth on the applicable Pricing Schedule.

 

5.0 TERM

 

5.1           Term of Agreement. The term of this
Agreement shall begin on the Effective Date and shall continue until the term
of each Service Schedule, including all renewals and extensions thereof, has
terminated, provided that the term of this Agreement may be earlier terminated,
as specified below.

 

6.0 TERMINATION

 

6.1           Termination Upon Default. Upon the
occurrence of an Event of Default (as defined in Section 7.0 below) by
either party and the failure of the defaulting party to cure such Event of
Default after written notice and opportunity to cure as provided in Section
7.3 hereof, the non-defaulting party may terminate each Service Schedule
affected by such Event of Default upon written notice given to the defaulting
party within thirty (30) days of the expiration of the cure period. Upon the
occurrence of an Event of Default with respect to Section 4.1 hereof by
Customer, or Section 8.1 hereof by either party, and the failure of the
defaulting party to cure such Event of Default after written notice and
opportunity to cure as provided in Section 7.3 hereof, the
non-defaulting party may terminate this Agreement upon written notice given to
the defaulting party within thirty (30) days of the expiration of the cure
period.

 

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6.2           Effect of Termination. Upon the
termination of this Agreement or any Service Schedule (a) each billed party
shall promptly pay to the billing party all undisputed amounts due to such
billing party pursuant to this Agreement; and (b) the billing party may
continue to perform all or part of the Services consistent with past practices
as operationally necessary to finalize the termination of Services and the
billed party agrees to pay to the billing party the undisputed amounts for
those Services performed that would be payable if the Agreement had not
terminated. Following the payment to Pegasus of the amounts described in the
preceding sentence, Pegasus shall deliver to Customer, in a format supported by
the Pegasus systems used to provide the related Services, one or more data
files containing all of Customer’s data stored on such systems as of the date
of such termination.

 

6.3           Survival. Sections 6.2 (Effect of
Termination), 6.3 (Survival), 8.1 (Confidentiality), 9.1 (Pegasus Ownership),
9.2 (Customer Ownership), 9.3(b) (Use of Marks), 9.4 (Definition), , 10.1
(Indemnification), 10.2 (Representations and Warranties), 10.3 (Disclaimer of
Warranties), 10.4 (Limitation of Liability), 10.5 (No Consequential Damages),
11.2 (Law and Venue), 11.11 (Waiver) and 11.12 (Severability) hereof and any
rights or obligations of Pegasus or Customer that may have accrued as of the
termination of this Agreement shall survive such termination.

 

7.0 DEFAULT

 

7.1           Events of Default. Subject to Section
7.2 hereof, any one of the following listed occurrences shall be considered
an “Event of Default”:

 

(a)           Either
party hereto fails to pay any amount due hereunder within the time period
required;

 

(b)           Either
party hereto commits a material breach of this Agreement; or

 

(c)           Either
party ceases to do business as a going concern; becomes insolvent, bankrupt or
the subject of a receivership; makes an assignment for the benefit of its
creditors or enters into an arrangement with creditors in lieu thereof;
authorizes, applies for, or consents to the appointment of a trustee or
liquidator of all or substantially all of its assets or has proceedings seeking
such an appointment commenced against it which are not terminated within sixty
(60) days of such commencement; or has any substantial part of its property
subjected to any levy, seizure, assignment or sale for, or by any creditor or
governmental agency without said levy, seizure, assignment or sale being
lifted, released, reversed or satisfied within ten (10) days.

 

7.2           Force Majeure. The occurrence of an
event listed in Section 7.1(b) hereof will not constitute an Event of
Default if the occurrence is caused by or results from governmental regulation,
acts of God, terrorist acts, fire, war, civil unrest, power fluctuations or
outages, public utility failures, mechanical defects, or other events beyond
the control of the affected party, provided that if such event continues for
more than thirty (30) consecutive days, either party may terminate this
Agreement by providing notice to the other party as specified in Section
11.6 of this Agreement.

 

7.3           Notice of Default and Cure Period. Following
the occurrence of an Event of Default, the non-defaulting party may give
written notice to the defaulting party specifying the same. Except as otherwise
provided in the Pricing Schedule attached hereto or in any Service Schedule,
the defaulting party shall be entitled thirty (30) days after receipt of such
notice within which to cure any default.

 

8.0 CONFIDENTIALITY

 

8.1           Confidentiality. For purposes of this
Agreement, “Confidential Information” shall mean all information furnished by
one party hereto to the other in connection with this Agreement that is
designated or treated as confidential by the disclosing party; all information
concerning the design, functionality and operation of the Pegasus systems used
to provide the Services; and all Customer data generated by the operation of
such systems. Confidential Information shall not include any information that
(a) is already lawfully known by the receiving party when received as a matter
of record; (b) is independently developed
by the receiving party; (c) is now or hereafter becomes generally
available to the public through no fault of the receiving party; (d) is received by the receiving party from a third
party legally entitled to make such disclosure; or (e) is disclosed
after the receiving party obtains prior written approval from the disclosing
party for such disclosure. Neither party hereto

 

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shall use the other party’s Confidential Information for any purpose
other than to fulfill its obligations arising under this Agreement. Each party
hereto shall use reasonable efforts to keep confidential the other party’s
Confidential Information and the terms and pricing contained in this Agreement
and shall not disclose such information to any person or entity other than its
employees, agents, and affiliates who agree to comply with this Section 8.1
or other than as required to fulfill its obligations arising under this
Agreement. Each party hereto shall be responsible for the breach of this Section
8.1 by its employees, agents, and affiliates. After the termination of this
Agreement each party hereto shall promptly return to the other party or destroy
all original and duplicate copies of the other party’s Confidential Information
furnished to it upon the written request of the other party, provided that
Pegasus may retain in its records relating to its performance of the Services
Customer’s Confidential Information that is incorporated into such records in
the normal course of Pegasus’ business. Each party shall certify any such
destruction to the other party within five business days of such written
request. Notwithstanding this Section 8.1, Pegasus may use and disclose
data derived by Pegasus in the performance of this Agreement, provided that
neither Customer, nor any Affiliate or customer of any Affiliate, is
identifiable from such data. In the event that the receiving party is ordered,
by law, rule, regulation, governmental agency or court of competent
jurisdiction, to disclose Confidential Information of the disclosing party, the
receiving party will provide prompt notice of such order to the disclosing
party and cooperate with and assist the disclosing party, at the disclosing
party’s cost and expense, so that the disclosing party may limit the scope of
any disclosure. To the extent that Pegasus has access to personally
identifiable information (including, but not limited to, names, phone numbers,
addresses, credit card information, social security numbers, and/or account or
financial information) of Customer’s or its Affiliates’ employees, franchisees,
sales associates, brokers, or customers, Pegasus acknowledges and agrees that
such information is highly confidential and private in nature and agrees to
hold such information in the strictest of confidence, and protect such information,
in accordance with Customer’s privacy policies, the aforementioned
confidentiality provisions, and applicable law. Pegasus shall not use or
disclose such personally identifiable information without the prior written
consent of Customer and the applicable individual(s) to whom the information
belongs. In the event that Customer and the applicable individual(s) so
consent, Pegasus may disclose such personally identifiable information only to
the extent expressly permitted by Customer and such individual(s) and only in
accordance with the terms of this Agreement and applicable law.

 

8.2           No Hire. Deleted by agreement.

 

9.0 INTELLECTUAL PROPERTY RIGHTS; OWNERSHIP
OF DATA

 

9.1           Pegasus Ownership. Pegasus and its
licensors shall retain exclusive ownership of all right, title and interest,
including without limitation, all Intellectual Property Rights (as defined in Section
9.4 hereof), in and to the Services and the systems and software used by
Pegasus to provide the Services; the design, functionality, operation and
components of the same; all modifications, enhancements and upgrades to the
same; and Pegasus’ business methods. No right, title or interest of any kind in
the foregoing is granted to Customer or any Affiliate pursuant to this
Agreement.

 

9.2           Customer Ownership. Customer and its
licensors shall retain exclusive ownership of all right, title and interest,
including without limitation, all Intellectual Property Rights (as defined in
Section 9.4 hereof) in and to (a) Customer’s and Affiliates’ data residing on
the Pegasus systems; and (b) Customer’s and Affiliates’ images stored during
the term of this Agreement on Pegasus’ servers. No right, title or interest of
any kind in the foregoing is granted to Pegasus pursuant to this Agreement.

 

9.3           Use of Marks.

 

(a)           Customer
represents that it has the right to grant, and hereby grants, to Pegasus the
right to use and display, and store on Pegasus’ servers, Customer’s and
each applicable Affiliate’s trademarks, service marks, trade names, trade
dress, logos, names, and pictures (and those of any third party which are used
or provided by Customer and each of its applicable Affiliates) to the extent
necessary to perform Pegasus’ obligations in accordance with this Agreement.
Notwithstanding the preceding sentence, Pegasus acknowledges and agrees that it
will not obtain any right, title or interest in or to the foregoing pursuant to
this Agreement.

 

(b)           Customer
shall indemnify, defend and hold harmless Pegasus and its subsidiaries, and the
officers, directors employees and agents of the same, from and against all
losses, claims, liability, costs,

 

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damages, fines, and expenses (including all legal costs) incurred or
suffered by any of the indemnified parties that arise out of or in connection
with a third party claim based upon the actions described in the preceding
subsection (a) other than any losses, liability, costs, damages, fines or
expenses resulting from any indemnified party’s alteration or misuse of Customer’s
or any Affiliate’s trademarks, service marks, trade names, trade dress, logos,
names or pictures.

 

(c)           Neither
party shall use any of the trademarks, service marks, trade names, trade dress,
logos or name of the other party or its affiliates in any way including,
without limitation, in any advertising or promotional materials, without the
prior written approval of the owning party. Neither party nor any of its
affiliates shall obtain any right, title or interest in or to the other party’s
Intellectual Property Rights (as defined in Section 9.4 herein) pursuant to
this Agreement.

 

9.4           Definition. As used in this Agreement, “Intellectual
Property Rights” shall mean any and all now known or hereafter known tangible
and intangible (a) rights associated with works of authorship, including but
not limited to copyrights and moral rights; (b) trademark, trade name and trade
dress rights and similar rights; (c) trade secret rights; and (d) patents,
designs, algorithms and other industrial property rights; all other
intellectual and industrial property rights (of every kind and nature
throughout the world and however designated), whether arising by operation of
law, contract, license or otherwise; and all registrations, initial
applications, renewals, extensions, continuations, divisions or reissues
thereof now or hereafter in force.

 

9.5           Intellectual Property Indemnification. Should
any claim be raised by any third party alleging that Customer’s use of any of
the Services or Intellectual Property Rights constitute infringement of any
United States patent, copyright, license or other property right (an “IP Claim”),
Pegasus will, at its expense, defend such IP Claim and will indemnify Customer
from and against each claim, demand, loss, liability and expense (including
reasonable attorney’s fees) suffered or incurred by Customer as a result of or
in connection with any IP Claim, except to the extent that an IP Claim arises
as a result of (a) a breach by Customer of its obligations under this
Agreement; (b) any alteration or modification made by Customer to the Services;
(c) use of the Services by Customer in combination with hardware or software
not supplied by Pegasus; or (d) any third party’s access to or use of any of
Pegasus’ services. After receiving notice of an IP Claim, Customer shall
promptly advise Pegasus of the IP Claim. Excluding any settlement negotiations
which affect Customer, Pegasus may, at its sole option, assume sole control of
the defense of any IP Claim and any related settlement negotiations. Customer
shall give Pegasus all reasonable information and assistance, at Pegasus’s
expense, reasonably necessary to defend any IP Claim. Should Customer be
temporarily or permanently enjoined from using any Service or Intellectual
Property as a result of any IP Claim, Pegasus, at its own expense, will either
procure for Customer the right to continue to use the Service free from any IP
Claim or replace or modify the offending Service or Intellectual Property so
that its use by Customer becomes non-infringing, as soon as reasonably
practicable following the date on which Pegasus receives notice of such
injunction, or Customer may terminate this Agreement.

 

10.0 REPRESENTATIONS AND WARRANTIES;
DISCLAIMER OF WARRANTIES; INDEMNIFICATION;LIMITATION OF LIABILITY

 

10.1         Indemnification. Each party to this
Agreement agrees to indemnify and hold harmless the other party, the other
party’s subsidiaries and affiliates, and the respective successors and assigns
thereof, from any and all third party losses, liability, damages, costs,
claims, demands, actions, or suits, including reasonable attorneys’ fees and
court costs (collectively a “Claim”), which arise directly or indirectly out
of: (i) any breach of Sections 10.2(a), 10.2(b)(iii) or 10.2(b)(iv), (ii) with
respect to Pegasus, any loss, misdirection, or conversion of the funds remitted
to Pegasus that resulted from any error by Pegasus, or (iii) the gross
negligence or willful misconduct of the indemnifying party in connection with
its participation/performance hereunder. After receiving notice of a Claim
subject to indemnification hereunder, the indemnified party shall promptly
advise the indemnifying party of such Claim. Excluding any settlement
negotiations which affect the indemnified party, the indemnifying party may, at
its sole option, assume sole control of the defense of any Claim and any
related settlement negotiations. The indemnified party shall give the
indemnifying party all reasonable information and assistance, at the
indemnifying party’s expense, reasonably necessary to defend any Claim.

 

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10.2         Representations and Warranties.

 

(a)           Each
party warrants and represents to the other party that:  it is free of any contractual obligations
that would prevent it from entering into and performing its obligations under
this Agreement.

 

(b)           Pegasus
warrants and represents to Customer that:

 

(i)            It
will perform its obligations under this Agreement using all reasonable skill
and care;

 

(ii)           All
personnel assigned by Pegasus to perform Pegasus’ obligations under this
Agreement shall be competent and will perform their duties in a professional
manner;

 

(iii)          it
shall use commercially reasonable efforts to ensure, by means of recognized
diagnostic and security procedures, that the Services shall be free from
disabling programs or devices and contamination by any virus and that it will
not introduce any such disabling programs or devices and viruses onto the
Customer’s or Affiliate’s systems while performing the Services; and

 

(iv)          There
are no actions, suits or proceeding pending which shall have a material affect
on Pegasus’ ability to fulfill its obligations under this Agreement

 

10.3         Disclaimer of Warranties. EXCEPT AS SET
FORTH IN SECTION 10.2 ABOVE, NEITHER PARTY MAKES AND EACH PARTY HEREBY
SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, STATUTORY OR
OTHERWISE, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF FITNESS FOR A
PARTICULAR PURPOSE, MERCHANTABILITY, GOOD AND WORKMANLIKE PRODUCT OR SERVICE OR
NON-INFRINGEMENT, RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.

 

10.4         Limitation of Liability. PEGASUS, ITS
SUBSIDIARIES AND AFFILIATES SHALL HAVE NO LIABILITY ARISING FROM OR RELATING TO
(i) THE FAILURE OF THE SERVICES TO OPERATE OR FUNCTION DUE TO APPLICATIONS,
EQUIPMENT, SERVICES, CONTENT OR NETWORKS PROVIDED BY CUSTOMER, AN AFFILIATE OR
A THIRD PARTY NOT ACTING AS PEGASUS’ AGENT; (ii) INTERRUPTIONS OF CUSTOMER’S OR
ANY AFFILIATE’S ACCESS TO THE SERVICES OR LOST OR ALTERED TRANSMISSIONS NOT
CAUSED BY PEGASUS; (iii) UNAUTHORIZED ACCESS TO OR THEFT, ALTERATION, LOSS OR
DESTRUCTION BY ANY THIRD PARTY OF CUSTOMER’S OR ANY AFFILIATE’S APPLICATIONS,
CONTENT, DATA, INFORMATION, NETWORKS OR SYSTEMS NOT CAUSED BY PEGASUS; (iv)
DATA PROVIDED OR ENTERED BY CUSTOMER, ANY AFFILIATE OR ANY THIRD PARTY (OTHER
THAN ANY ERROR OR OMISSION IN DATA CAUSED BY PEGASUS’, OR PEGASUS’ AGENTS’ OR
SUBCONTRACTORS’, ENTRY OF THAT DATA); OR (v) ANY GOOD OR SERVICE SUPPLIED TO
CUSTOMER OR AN AFFILIATE BY ANY THIRD PARTY THAT IS REFERRED BY PEGASUS OR THAT
HAS A HYPERLINK, ADVERTISEMENT OR OTHER PRESENCE ON ANY PAGE OR SCREEN
DISPLAYED BY PEGASUS. EXCEPT FOR EACH PARTY’S INDEMNIFICATION AND
CONFIDENTIALITY OBLIGATIONS, AND PAYMENT OBLIGATIONS, IN NO EVENT WILL EITHER
PARTY’S LIABILITY UNDER THIS AGREEMENT EXCEED THE TOTAL FEES AND COSTS PAID BY
CUSTOMER FOR THE SERVICES DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING
THE DATE OF THE CAUSE OF ACTION OR OCCURRENCE WHICH IS THE BASIS OF EITHER
PARTY’S CLAIM AGAINST THE OTHER PARTY.

 

10.5         No
Consequential Damages. EXCEPT FOR THE OBLIGATIONS SET FORTH HEREIN
PERTAINING TO CONFIDENTIALITY AND INDEMNIFICATION, IN NO EVENT WILL EITHER
PARTY, NOR ANY AFFILIATE, BE LIABLE FOR ANY PUNITIVE, INCIDENTAL OR
CONSEQUENTIAL DAMAGES IN ANY ACTION ARISING FROM OR RELATED TO THE TERMS AND
CONDITIONS OF THIS AGREEMENT, WHETHER BASED IN CONTRACT, TORT (INCLUDING
NEGLIGENCE), INTENDED CONDUCT OR OTHERWISE, INCLUDING, WITHOUT LIMITATION,
DAMAGES RELATING TO THE LOSS OF PROFITS, INCOME OR GOODWILL, REGARDLESS OF WHETHER
SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

11.0 MISCELLANEOUS

 

11.1         Mandatory Arbitration. Deleted by
agreement.

 

11.2         Law and Venue. If any dispute between
Pegasus and Customer arises out of this Agreement, the parties agree that the
laws of the State of New York, USA shall control without reference to its
conflict of laws principles. In the event Pegasus institutes any legal
proceeding relating to this Agreement against Customer,

 

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venue for such proceeding shall be in New York County, New York, and in
the event Customer institutes any legal proceeding relating to this Agreement
against Pegasus, venue for such proceeding shall be in Dallas County, Texas.

 

11.3         Compliance with Laws. Each party shall
fully comply with all material laws, regulations and governmental orders
applicable to their performance of this Agreement, including without limitation
those regarding trade sanctions, export control, data protection and the
processing of personal data. Notwithstanding anything to the contrary contained
in this Agreement, in no event shall either party or any of its affiliates be
required to perform hereunder to the extent that such party reasonably
concludes that such performance may violate any applicable law, regulation or
governmental order.

 

11.4         Status of Parties. This Agreement does
not constitute a partnership, joint venture, or similar arrangement between the
parties, and neither party nor any of their respective directors, officers,
employees or agents shall be deemed to be an agent, employee, or legal
representative of the other. Neither party hereto is authorized by this
Agreement to bind the other or otherwise act in the name of or on behalf of the
other. Nothing in this Agreement shall be construed to give any person or
entity other than Pegasus and Customer any legal or equitable right, remedy or
claim in connection with or arising from this Agreement.

 

11.5         Assignment. This Agreement is not
assignable by Pegasus or Customer without the prior written consent of the
other party, and such consent may not be unreasonably withheld or delayed. Notwithstanding
the foregoing, either party may assign this Agreement without consent in the
event of a merger, acquisition or sale of all or substantially all of its
assets provided the assignee unconditionally assumes the Agreement in writing. Either
party may assign this Agreement or any part of the Services to any of its
subsidiaries or affiliates without the other party’s consent. Any assignment of
this Agreement in violation of this section shall be void and unenforceable. Notwithstanding
the foregoing, if a Pegasus Change in Control occurs, Customer may terminate
this Agreement with sixty (60) days prior written notice. For purposes of this
provision, a “Pegasus Change in Control” means an event in which Pegasus
becomes controlled by, or an affiliate of, a Customer competitor. For purposes
of this provision, “controlled by” means the possession, directly or
indirectly, of the power to direct or cause the direction of management or
policies (whether through ownership of securities or partnership or other
ownership interests, or by contract). For purposes of this provision, “Customer
competitor” means Amadeus Global Travel Distribution S.A., Sabre, Inc.
(including Easy Sabre, Travelocity, Site59 and GetThere), Hotels.com,
Hotwire.com and Expedia Inc. (including Travelscape) and all subsidiaries and
affiliates of, and any successor entity to, any of the foregoing

 

11.6         Notices. All notices contemplated
hereby must be in writing and (a) personally delivered; (b) deposited in the
mail, first-class, registered or certified mail, return receipt requested, or
similar service with postage prepaid; or (c) sent by overnight courier service
(for next business day delivery if within the country of the sender or second
business day delivery if outside the country of the sender), shipping prepaid
as follows (or to such persons or addresses as any party may request by notice
duly given hereunder):

 

	
  If to Pegasus:

  	
   

  	
  If to Customer:

  
	
  Pegasus Solutions, Inc.

  8350 N. Central Expressway, Suite 1900

  Dallas, Texas 75206 USA

  Attn: Gideon Dean

  	
   

  	
  Cendant Travel Distribution Services Group

  7 Sylvan Way

  Parsippany, New Jersey 07054

  Attn: Jeff Horch, Hospitality Distribution

  
	
  cc: Ric L. Floyd, General Counsel

  at the same address

  	
   

  	
  cc: General Counsel,

  at the same address

  

 

Except as otherwise specified herein, notices will be deemed given and
received at the time of delivery or of refusal of delivery.

 

11.7         Entire Agreement; Controlling Language.
This Agreement, the Service Schedules and any other attachments hereto
constitute the entire agreement between Pegasus and Customer with respect to
the subject matter of this Agreement and supersedes and replaces any and all
other agreements and representations, verbal or written, with respect thereto. There
are no representations, warranties or agreements made or relied upon by either
party with respect to the subject matter of this Agreement that are not set
forth in this Agreement. This Agreement (including the Service Schedules and
any other attachments hereto) may not be amended or modified other than by a
written agreement executed by Customer and Pegasus. In the event of any
conflict between the

 

8

 

terms of this Agreement and the terms of any Service Schedule, the
terms of this Agreement shall control. This Agreement has been executed in the
English language, which shall be the controlling language with respect to this
Agreement in all respects. Any translation of this Agreement into another
language is for convenience only and no such translation shall be binding
against the parties hereto.

 

11.8         Exclusive Agreement. Deleted by
agreement.

 

11.9         Successors and Assigns. This Agreement
shall be binding upon and will inure to the benefit of the legal
representatives, successors and duly authorized assigns of each party whether
resulting from merger, acquisition, reorganization or assignment pursuant to
the terms hereof.

 

11.10       Execution; Retention. This Agreement
may be executed in counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement enforceable against each party in accordance with its terms. A
signature delivered by facsimile transmission shall be effective to bind the
executing party. This Agreement may be retained or stored by either party
solely in an electronic format, and any reproduction of this Agreement by
reliable means from an electronic format shall be deemed an original.

 

11.11       Waiver. Except as otherwise provided
herein, the failure of a party hereto to exercise any of its rights or to
enforce any of the provisions of this Agreement on any occasion shall not be a
waiver of such right or provision, nor affect the right of such party
thereafter to enforce such right or provision.

 

11.12       Severability. If any provision of this
Agreement shall be held illegal, invalid or unenforceable by a court of
competent jurisdiction, in whole or in part, such provision shall be deemed
modified to the minimum extent necessary to make it legal, valid and
enforceable, and the legality, validity and enforceability of the remaining
provisions shall not be affected.

 

11.13       Insurance. At no cost to Customer,
Pegasus shall obtain and maintain commercial general liability insurance from
on or more companies having an A.M. Best’s Rating of A-VII or better, which
insurance will have minimum limits of $2,000,000 bodily injury and property
damage per occurrence; shall be occurrence based; and shall include personal
injury coverage.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above
written.

 

	
  PEGASUS SOLUTIONS, INC.

  	
   

  	
  CENDANT TRAVEL DISTRIBUTION SERVICES GROUP, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Ralph E. Compton III

  	
   

  	
  By:

  	
  /s/
  JEFF HORCH

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Ralph
  E. Compton III

  	
   

  	
  Name:

  	
  Jeff
  Horch

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

9

 

	
  

  	
  UltraDirect Services

  Schedule

  

 

This UltraDirect Services Schedule is attached to and a part of the
Master Services Agreement with the Effective Date of                      ,
200    , by and between Pegasus Solutions, Inc. and Cendant
Travel Distribution Services Group, Inc.

 

1.             Definitions. All capitalized terms used
in this UltraDirect Services Schedule but not defined herein shall have the
meanings set forth elsewhere in this Agreement. In addition, the following
definitions shall apply for purposes of this UltraDirect Services Schedule:

 

(a)           UltraDirect Services Schedule Effective Date means
                     ,
200    .

 

(b)           Available
means that (i) the Reservation Function transmits Reservations Data materially
in accordance with the terms of this UltraDirect Services Schedule; and (ii)
the Reservation Function is accessible from the point at which the Pegasus data
center local area network intersects with the wide area networks over which
Reservations Data are transmitted to the Reservation Function pursuant to this
UltraDirect Services Schedule. It is the intent of both parties to work toward
valid responses from the central reservations systems represented. Pegasus’
contribution will include the Best Practices Certification initiative for CRS’s.

 

(c)           Customer’s
Web Site means the Internet site(s) created, maintained and hosted
by or on behalf of Customer with the following address(es):                          ,
and any successor or replacement site(s) created, maintained and hosted by or
on behalf of Customer.

 

(d)           Downtime
is the amount of time during which the Reservation Function is not Available,
subject to the provisions of subparagraph 8(c) of this UltraDirect Services
Schedule.

 

(e)           Fees
means those fees set forth in paragraphs 2 through 5 of the UltraDirect Pricing
Schedule to this Agreement.

 

(f)            Geo Search means functionality allowing an
accessor of Customer’s Web Site to receive, in response to a query, a list of
the lodging establishments whose information appears in the Online Distribution
Database that satisfy the following criteria: (i) a location described as
either a physical address or latitude and longitude; and (ii) a radial distance
in miles or kilometers specified from such location.

 

(g)           Geo
Search Maps means functionality allowing an accessor of Customer’s Services
to request and view a map showing the lodging establishments included in the
Online Distribution Database in response to a Geo Search query.

 

(h)           Issue
means a problem that causes a failure of, or a degradation in, the operation of
the Reservation Function or the Online Distribution Database

 

(i)            Look
to Book Ratio means the ratio of (i) the sum of Single Property
Availability Requests plus Multi-Property Availability Requests plus Rate Plan
Information Requests with respect to a particular time period, to (ii) Total
Reservations with respect to the same time period.

 

(j)            Maintenance
Window means the following hours, subject to change upon the agreement of  Pegasus
and Customer: (i) 10:00 p.m. to midnight, Mountain Standard Time (North
America), on each             Friday;
and (ii) 9:00 p.m. to midnight, Mountain Standard Time (North America), on each
Saturday.

 

(k)           Monitoring
Application means an automated monitoring application employed by Pegasus
that generates test messages, causes such messages to be transmitted throughout
the technology infrastructure used by Pegasus to deliver the Services and
records the results of each transmission for later analysis.

 

(l)            Multi-Property
Availability Request means a single request message for rates and
availability relating to two or more lodging properties that is transmitted
through the UltraDirect Interface pursuant to this UltraDirect Services
Schedule.

 

(m)          Net Reservations means the number of
reservations transmitted through the UltraDirect Interface during a particular
time period, less the number of cancellations of reservations transmitted
through the 

 

1

 

UltraDirect Interface during the same time period.

 

(n)           Offensive
Content means content that, is defamatory, obscene, pornographic,
gratuitously violent or otherwise offensive.

 

(o)           Online Distribution Database means a
digital database of lodging data and images created and  maintained by
or for Pegasus.

 

(p)           Onward Distributor means a party other than
Pegasus or Customer that operates an electronic system that displays and
transmits Reservations Data which includes providers of metasearch or rate          auditing functionality
(also known as crawlers) that have contractual relationships with Customer.

 

(q)           Rate Plan Information Request means a
single request message for detailed information regarding a specified rate and
room type that is transmitted through the UltraDirect Interface pursuant to
this UltraDirect Services Schedule.

 

(r)            Reservations
Data means reservation rate and availability information, and information
relating to the making, changing and canceling of reservations.

 

(s)           Reservation
Function means Pegasus-provided functionality that transmits Reservations
Data between reservation systems and other systems.

 

(t)            Response Time means the time elapsed from
Customer’s submission of a valid request to Pegasus’ return of response
excluding time for respective CRS response.

 

(u)           Scheduled
Downtime means a period of time (i) during the Maintenance Window, (ii)
during which the Reservation Function is not Available, and (iii) with respect
to which Pegasus gives Customer  notice in compliance with
subparagraph 8(d) of this UltraDirect Services Schedule.

 

(v)           CRS Scheduled Downtime means a period of
time during which a particular CRS is not Available, and with respect to which
such CRS has given Pegasus advance notice.

 

(w)          Single Property Availability Request means
a single request message for rates and availability relating to one lodging
property that is transmitted through the UltraDirect Interface pursuant to this
UltraDirect Services Schedule.

 

(x)            Total Reservations means the total number
of reservation requests transmitted through the UltraDirect Interface pursuant
to this UltraDirect Services Schedule.

 

(y)           UltraDirect
Interface means an interface between (i) Customer’s Web Site and (ii) the
Online Distribution Database and the Pegasus system(s) performing the
Reservation Function.

 

(z)            UltraDirect
Services means the services described in paragraph 2 of this UltraDirect
Services Schedule.

 

2.             UltraDirect Services. Pegasus agrees to
(a) provide Customer with specifications for Customer’s use in creating and
implementing the UltraDirect Interface; (b) grant Customer’s Web Site access to
the Online Distribution Database and the Reservation Function through the UltraDirect
Interface created, implemented and maintained by Customer in conformity with
such specifications, for the purpose of permitting accessors of Customer’s Web
Site to view data residing in the Online Distribution Database and to transmit
and view Reservations Data; and (c) use commercially reasonable efforts to
support Customer’s implementation and maintenance of the UltraDirect Interface.

 

3.             Customer’s Duties.

 

General. Customer
shall (i) diligently create, implement and maintain the UltraDirect Interface
in accordance with this UltraDirect Services Schedule; (ii) be solely
responsible for the creation of all necessary URL links from Customer’s Web
Site to the Online Distribution Database and the Reservation Function; and
(iii) except as expressly permitted under this Agreement, not permit the Online
Distribution Database, the Reservation Function or the UltraDirect Interface to
be copied, downloaded, hyperlinked or in any manner used or redistributed in
whole or in part except as expressly permitted by this Agreement

 

2

 

(a)           Onward Distributors. Except as set forth in
this paragraph, Customer shall not knowingly permit any third party, other than
end-user consumers who access Customer’s Web Site, access to or use of data
transmitted through the UltraDirect Interface. Customer may permit Onward
Distributors access to and use of data transmitted through the UltraDirect
Interface, subject to Pegasus’ right to prohibit such access and use by any
Onward Distributor, provided that

 

(i)                                     prior to
permitting such access and use by an Onward Distributor, Customer provides
written notice to such Onward Distributor stating that (A) such data and the
systems transmitting the same are the sole and exclusive property of Pegasus,
its licensors and/or the lodging establishments whose information appears in
the Online Distribution Database (provided Pegasus need not be named); and (B)
no right, title or interest of any kind in such systems or data is granted by
Pegasus to such Onward Distributor by virtue of its access to and use of such
data. [Our agreements with our affiliates make clear the data is owned by “Third
Parties” and “Suppliers” but do not mention Pegasus by name]

 

(ii)                                  Customer uses
reasonable efforts to terminate such access and use by any Onward Distributor
that displays Offensive Content on any electronic system maintained and hosted
by or on behalf of such Onward Distributor

 

(iii)                               In consideration of
Pegasus’ agreement to permit Onward Distributors access to and use of data
transmitted through the UltraDirect Interface, Customer hereby agrees to
indemnify, defend and hold harmless Pegasus, its directors, officers,
employees, agents, successors and assigns, from and against any and all
liability and every loss, cost, damage, claim, cause of action and expense
(including reasonable attorneys’ fees) paid or incurred by and one or more of
them arising from or attributable to such access or use by any Onward
Distributor or a user of any Onward Distributor in violation of the terms of
this Agreement provided such loss, cost, damage, claim, cause of action and
expense is not attributable to Pegasus’ negligence or misconduct (or that of
Pegasus’ affiliates).

 

(b)           Bursting; Look to Book Ratio.

 

(i)            Methods to Reduce Ratio. Each party shall
(i) confer with the other party in good faith regarding recommended methods for
reducing the Look to Book Ratio; and (ii) use
commercially reasonable efforts to implement those recommended methods that
Pegasus and Customer agree in good faith are practicable. Pegasus shall
continue to implement measures to improve system stability.

 

(ii)           Excess
Ratio. If the Look to Book Ratio exceeds 1,000:1 with respect to a
calendar  month
then:

 

(a)           The
Fees set forth in paragraph 3 of the UltraDirect Pricing Schedule apply; and

 

(b)           Pegasus
shall not be obligated to transmit Customer Reservations Data during the
calendar month immediately following such month to any central reservation
system to which the operator of such system has requested that Customer
Reservations Data not be transmitted, provided, however, that Pegasus promptly
notifies Customer of such request.

 

4.             Use of Reservation Function. If
information from the Online Distribution Database regarding a lodging
establishment is provided to an accessor of Customer’s Web Site or an Onward
Distributor, Customer shall use reasonable efforts to ensure that such accessor
of Customer’s Web Site or Onward Distributor transmits Reservations Data
regarding such lodging establishment exclusively through the Reservation
Function, provided that Pegasus’ sole remedy for a breach of this Section 4
shall be to terminate this Schedule upon thirty (30) days’ prior notice to
Customer.

 

5.             Offensive Content. Pegasus may
immediately terminate the provision of UltraDirect Services to Customer for any
period of time during which Customer’s Web Site, or any electronic system
maintained and hosted by or on behalf of an Onward Distributor with access to
and use of data transmitted through the UltraDirect Interface, displays any
Offensive Content. Notwithstanding the foregoing, before Pegasus exercises its
termination right set forth in the preceding sentence, Pegasus shall first
afford Customer the opportunity to remove such Offensive Content within
twenty-four (24) hours after receiving written notice from Pegasus.

 

6.             Data Transmission. The transmission of
data between Customer’s Web Site and the UltraDirect 

 

3

 

Interface shall occur by such means as are mutually agreed by Customer
and Pegasus.

 

7.             Online Distribution Database Download. Pegasus
agrees to allow Customer, and Customer agrees to perform, a complete download
to Customer’s Web Site of all property-descriptive information in the Online
Distribution Database, such download to occur an a date mutually agreed by
Customer and Pegasus, but not occur after the 5th day of each month.
Pegasus agrees to allow, and Customer agrees to perform, on a daily basis
thereafter one (1) download to Customer’s Web Site of any property-descriptive
information in the Online Distribution Database that has been modified since
the last download. Customer further agrees to make a good faith effort to make
modified property-descriptive information accessible to accessors of Customer’s
Web Site within two (2) business days of Customer’s download of the same. Customer
shall not permit information downloaded pursuant to this paragraph to be
further downloaded to any third party system and shall not distribute such
information to any third party in any tangible medium. Upon the earlier of the
termination of this UltraDirect Services Schedule or such time as Customer
ceases to perform downloads as provided above, Customer shall promptly delete
from its systems all information downloaded pursuant to this paragraph which is
not publicly available elsewhere and shall promptly destroy or return to
Pegasus all physical copies of any such information. Upon Pegasus’ request,
Customer shall certify to Pegasus any such deletion, destruction and return within
five business days of receipt of such request.

 

8.             Service Availability Commitment.

 

(a)           Service Availability/Service Level Credit. If
Pegasus is unable to achieve a level of (***) Availability of the Reservation
Function during each calendar month as a percentage of all time during such
calendar month, Pegasus shall, as Customer’s sole and exclusive remedy for such
violation, pay to Customer in the following calendar month a fee calculated in
accordance with the following table:

 

	
  Availability of the 

  Reservation Function 

  During Each Calendar 

  Month

  	
   

  	
  Service Level Fee Payable by 

  Pegasus to Customer

  	
   

  	
  Service Level Fee Payable 

  by Pegasus to Customer

  
	
   

  	
   

  	
  (Effective Date through August 31, 

  2005)

  	
   

  	
  (September 1, 2005 onward)

  
	
  99.79% –99.75%

  	
   

  	
  (***) per Net Reservation

  	
   

  	
  (***) per Net Reservation

  
	
  99.74% –99.70%

  	
   

  	
  (***) per Net Reservation

  	
   

  	
  (***) per Net Reservation

  
	
  99.69% –99.60%

  	
   

  	
  (***) per Net Reservation

  	
   

  	
  (***) per Net Reservation

  
	
  99.59% – 99.50%

  	
   

  	
  (***) per Net Reservation

  	
   

  	
  (***) per Net Reservation

  
	
  99.49% – 99.40%

  	
   

  	
  (***) per Net Reservation

  	
   

  	
  (***) per Net Reservation

  
	
  99.39%–99.01%

  	
   

  	
  (***) per Net Reservation

  	
   

  	
  (***) per Net Reservation

  
	
  99.00% – below

  	
   

  	
  (***) per Net Reservation

  	
   

  	
  (***) per Net Reservation

  

 

In the event Customer owes Pegasus any amounts under this Agreement,
Pegasus will offset/credit the Service Level Fees specified above payable by
Pegasus against any such amounts owed to Pegasus by Customer.

 

(b)           Downtime Measurement. The amount of
Downtime during any period will be determined by reference to the results
recorded by the Monitoring Application and agreed upon by Pegasus and Customer
(agreement not to be unreasonably withheld by either party). Downtime end times
will be demarked by written (email) notification by Pegasus to Customer.

 

(c)           Downtime Exclusions. Downtime shall not
include any time during which the Reservation Function is not Available due to:

 

(i)                                     up to four (4)
hours of Scheduled Downtime per calendar month

 

(ii)                                  acts or omissions of
any party other than Pegasus or Pegasus’ vendors and agents;

 

4

 

(iii)                               hardware, software,
networks, equipment or interfaces other than those provided or managed by
Pegasus or Pegasus’ vendors and agents;

 

(iv)                              third-party service
providers other than Pegasus’ vendors and agents;

 

(v)                                 any other equipment,
applications or components not directly managed or controlled by Pegasus or
Pegasus’ vendors and agents; or

 

(vi)                              one or more of the causes
listed in Section 8.2 of the Master Services Agreement.

 

(d)           Notice by Pegasus of Scheduled Downtime. Pegasus
will give notice of Scheduled Downtime to Customer by e-mail or such other
means as mutually agreed by Customer and Pegasus. In addition, Pegasus will
give notice of CRS Scheduled downtime to Customer by e-mail or such other means
as mutually agreed by Customer and Pegasus, to the extent Customer obtains
written permission from such CRS for Pegasus to provide such notice. Such
notice will be given by Pegasus to the individual designated by Customer for
the receipt of such notices and will be given no less than five (5) calendar
days prior to the commencement of the subject Scheduled Downtime provided
Pegasus is informed prior to five (5) calendar days. Any such notice given by
Pegasus will include the date and time of commencement of the subject Scheduled
Downtime and an estimate of the duration of the subject Scheduled Downtime

 

(e)           Notice by Customer of Scheduled Outage. The
parties acknowledge and agree that Pegasus could interpret the cessation of
activity though the UltraDirect Interface from Customer’s Web Site as an Issue
requiring action by Pegasus pursuant to paragraph 9 below. Consequently,
Customer agrees to use commercially reasonable efforts to provide Pegasus prior
notice, by e-mail or such other means as mutually agreed by Customer and
Pegasus, of any plan by Customer to make Customer’s Web Site unavailable to
transmit Reservations Data to, or to receive transmissions of Reservations Data
from, the Reservation Function for any period of time. Any such notice given by
Customer will include the date and time of commencement of the subject
unavailability and an estimate of the duration of the subject unavailability

 

(f)            Event of Default. Nothing contained in
paragraph 8(a) above shall  be
interpreted to limit the rights and remedies of Customer in the case of an
Event of Default, as such term is defined in Section 7.0 of Master Services
Agreement.

 

9.             Response Time Commitment. The following
table sets forth percentage of responses (all request types) that must be
received within the associated time limit (excluding requests submitted during
Scheduled Platform Maintenance):

 

	
  Percentage of

  Responses

  	
   

  	
  Response
  Time

  
	
  100%

  	
   

  	
   

  	
  10 seconds

  
	
  95%

  	
   

  	
   

  	
  5 seconds

  
	
  90%

  	
   

  	
   

  	
  3 seconds

  

 

(a)                                  Pegasus will provide
an xml request that will return a consistent result that will allow Cendant to
verify that the Pegasus electronic distribution environment is available and
able to perform requested work.  The Cendant test request through this
monitor will also test the Response Time of the transaction.  Pegasus will
have the same (or similar) monitoring capability local to their systems and
will provide Cendant access to the monitor’s results in near real-time via a
portal.

 

(b)                                 For any calendar month
in which the Response Times do not meet any or all of the thresholds outlined
above, then the Net Reservation Fees payable by Pegasus to Customer pursuant to
paragraph 2 of the UltraDirect Pricing Schedule with respect to each Net
Reservation processed during such month shall be increased in accordance with
the following table:

 

5

 

	
   

  	
   

  	
  Potential Result Sets

  	
   

  
	
  100% within
  10 seconds

  	
   

  	
  X

  	
   

  	
  X

  	
   

  	
  X

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  95% within 5
  seconds

  	
   

  	
  X

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90% within 3
  seconds

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
  Addition to
  Net Reservation fee

  	
   

  	
  $

  	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
																							

 

Note: “X”
denotes meeting requirement

 

10.           Issue Resolution.

 

(a)           Severity Level Description. The following
table sets forth the criteria by which Customer will determine the appropriate
classification for each Issue identified by or reported to Pegasus:

 

	
  Severity Level

  	
   

  	
  Description

  
	
  1

  Emergency

  	
   

  	
  Reservation Function not Available (other than during Scheduled
  Downtime); or severe impact to Customer business operations; or potential for
  significant Customer loss of revenue

  
	
  2

  High

  	
   

  	
  Significant impact to Customer business operations; or significant
  impact to Customer’s use of the Reservation Function and absence of a
  work-around

  
	
  3

  Medium

  	
   

  	
  Significant impact to Customer’s use of the Reservation Function but
  a work-around exists

  
	
  4

  Low

  	
   

  	
  Any Issue that is not appropriately classified as Severity 1, 2 or 3

  

 

(b)           Issue Resolution Procedures. The following
table sets forth (i) the time periods within which Pegasus will communicate
with Customer (by telephone or electronic means) with respect to each Issue
reported to Pegasus; and (ii) Pegasus’ commitments to resolve, or mitigate the
effects of, such Issue:

 

	
  Severity

  Level

  	
   

  	
  Communication

  	
   

  	
  Resolution
  or Mitigation

  
	
  1

  Emergency

  	
   

  	
  Pegasus will contact Customer within thirty (30) minutes of receiving
  the initial report of the Issue, and will update Customer every thirty (30)
  minutes thereafter until the Issue is resolved.

  	
   

  	
  Pegasus commits to resolve the Issue or implement a work-around for
  the Issue that effectively mitigates the effects of the Issue within two (2)
  hours of Pegasus’ receipt of the initial report of such Issue.

  

  Within five (5) business days of resolution, Pegasus will deliver to Orbitz a
  written analysis detailing the causes of the of Issue.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  High

  	
   

  	
  Pegasus will contact Customer within sixty (60) minutes of receiving
  the initial report of the Issue, and will update Customer every sixty (60)
  minutes until the Issue is resolved.

  	
   

  	
  Pegasus commits to resolve the Issue or implement a work-around for
  the Issue that effectively mitigates the effects of the Issue within six (6)
  hours of Pegasus’ receipt of the initial report of such Issue.

  

  Within five (5) business days of resolution, Pegasus will deliver to Orbitz a
  written analysis detailing the causes of the of Issue.

  

 

6

 

	
  3

  Medium

  	
   

  	
  Pegasus will contact Customer: (i) on the same business day if the
  initial report is received during normal business hours and Pegasus is able
  to respond on the same business day or (ii) the next business day of
  receiving the initial report of the Issue if Pegasus is unable to resolve on
  the same business day. Pegasus will update Customer daily thereafter until
  the Issue is resolved.

  	
   

  	
  Pegasus commits to resolve the Issue or implement a work-around for
  the Issue that effectively mitigates the effects of the Issue within five (5)
  business days of Pegasus’ receipt of the initial report of such Issue.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  Low

  	
   

  	
  Pegasus will contact Customer within three (3) business days of
  receiving the initial report of the Issue.

  	
   

  	
  Pegasus will resolve the Issue or implement a work-around for the
  Issue that effectively mitigates the effects of the Issue within ten (10)
  business days of Pegasus’ receipt of the initial report of such issue.

  

 

(c)           Conditions to Pegasus’ Obligations. Pegasus’
performance of the obligations set forth in the preceding subparagraph 9(b)
with respect to an Issue are conditioned upon (i Customer taking such
reasonable actions within its control as are required to resolve or mitigate
the Issue, as applicable; (ii) with respect to a Severity Level 1 Issue,
Customer committing personnel and corporate resources as reasonably necessary
and without regard to normal business hours to assist Pegasus so that Pegasus
can promptly research and resolve the Issue; and (iii) with respect to a
Severity Level 2 or a Severity Level 3 Issue, Customer committing personnel and
corporate resources as reasonably necessary during normal business hours to
assist Pegasus so that Pegasus can promptly research and resolve or mitigate
the Issue, as applicable

 

11.           Time Period Targets.

 

(a)           Implementation. Pegasus and Customer will
each use commercially reasonable efforts to implement the UltraDirect Services
for any affiliates of Customer that wish to receive to receive the Services
hereunder within forty-five (45) business days of the UltraDirect Services
Schedule Effective Date, subject to the provisions of the governing plan and
schedule of implementation and to the performance of all necessary actions by
any third party.

 

(b)           Professional Services. Pegasus will use
commercially reasonable efforts to provide to Customer, within ten (10)
business days of Customer’s request for services to be performed by Pegasus’
Professional Services group, an estimated schedule for, and the estimated total
cost of, the requested services.

 

12.           Term.

 

(a)           This
UltraDirect Services Schedule shall be effective as of the UltraDirect Services
Schedule Effective Date and shall continue in effect for an initial term of two
(2) years from such date unless terminated earlier as provided in this
Agreement. The term of this UltraDirect Services Schedule shall thereafter
automatically renew for additional, successive one (1) year terms unless either
party provides written notice to the other party of its intent to terminate
this UltraDirect Services Schedule at least ninety (90) days prior to the
expiration of the then-current term.

 

(b)           Notwithstanding
the foregoing, Customer may terminate this UltraDirect Services Schedule upon
the expiration of the first initial twelve (12) months of the initial term
subject to Customer: (i) providing ninety (90) days prior written notice and
(ii) paying to Pegasus an early termination fee (which serves as liquidated
damages hereunder and not a penalty) equal to (***).

 

7

 

	
  PEGASUS SOLUTIONS, INC.

  	
   

  	
  CENDANT TRAVEL DISTRIBUTION

  SERVICES GROUP, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  RALPH E. COMPTON III

  	
   

  	
  By:

  	
  /s/
  JEFF HORCH

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Ralph
  E. Compton III

  	
   

  	
  Print:

  	
  Jeff
  Horch

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

8

 

ATTACHMENT A TO

ULTRADIRECT SERVICES SCHEDULE

 

XML SOFTWARE LICENSE AGREEMENT

 

BY ITS EXECUTION OF THE ULTRADIRECT SERVICES SCHEDULE TO WHICH THIS XML
SOFTWARE LICENSE AGREEMENT IS ATTACHED (THE “ULTRADIRECT SERVICES SCHEDULE”),
CUSTOMER (“LICENSEE”) AGREES TO ALL OF THE TERMS AND CONDITIONS OF THIS XML
SOFTWARE LICENSE AGREEMENT. ALL CAPITALIZED TERMS USED BUT NOT DEFINED IN THIS
XML SOFTWARE LICENSE AGREEMENT SHALL HAVE THE MEANINGS SET FORTH ELSEWHERE IN
THE AGREEMENT TO WHICH THE ULTRADIRECT SERVICES SCHEDULE IS ATTACHED AND OF
WHICH IT IS A PART.

 

License. Pegasus
Solutions, Inc., one or more of its subsidiaries (collectively, “Pegasus”)
or their licensors are the sole owners of the Software (as defined below). Other
than as set forth in the UltraDirect Service Schedule or the Master Services
Agreement between the parties, the Software licensed hereunder is licensed on
an as is basis without any warranty of any kind. Other than the license granted
herein, Licensee will not acquire any right, title or interest in or to the
Software pursuant to this XML Software License Agreement or its use of the
Software. Licensee is hereby licensed to: (i) use the Software on one or more
processors to create, implement and maintain the UltraDirect Interface; (ii)
modify the Software and/or merge it into other software for Licensee’s use
consistent with this XML Software License Agreement and the UltraDirect
Services Schedule, with any portion of the Software that is so merged
continuing to be subject to the terms and conditions of this XML Software
License and the UltraDirect Services Schedule; and (iii) make copies of the
Software for backup purposes only, provided that each such copy contains all of
the restrictive and proprietary notices that appear on the original version of
the Software copied, including the copyright notice. Licensee agrees not to
use, copy, or modify the Software or any copy, modification, or merged portion
thereof, in whole or in part, except as expressly provided for in this XML
Software License Agreement. LICENSEE AGREES
NOT TO SUBLICENSE, ASSIGN, OR TRANSFER THIS LICENSE OR THE SOFTWARE AND THAT
ANY ATTEMPT TO DO SO SHALL BE INVALID AND AUTOMATICALLY TERMINATE THIS LICENSE.
LICENSEE ACKNOWLEDGES THAT ITS SOLE RIGHTS WITH RESPECT TO THE SOFTWARE ARE SET
FORTH HEREIN.

 

Termination of License. The
license granted pursuant to this XML Software License Agreement is co-terminus
with the UltraDirect Services Schedule unless otherwise terminated pursuant to
the terms hereof. The license granted hereby to Licensee will be automatically
terminated if Licensee fails to comply with any term or condition of the
Agreement, including this XML Software License Agreement. Licensee agrees that
upon termination of the license granted herein it will immediately return to
Pegasus (upon Pegasus’ request) or destroy (and provide certification of such
destruction upon Pegasus request) the Software and all copies, modifications,
and merged portions thereof under Licensee’s control in any form or medium in
which they exist.

 

Installation and Operation. Pegasus
shall provide (i) documentation relating to the operation of the Software; and
(ii) four (4) hours (including all telephone and non-telephone time) of
customer service support to answer questions concerning the Software. Except as
set forth in the preceding sentence and the UltraDirect Services Schedule,
Pegasus shall have no obligation to provide services or support to Licensee
relating to the Software, including without limitation any upgrades or
enhancements to, or bug fixes for, the Software. Licensee and Pegasus agree
that any action of Pegasus in providing upgrades, enhancements or bug fixes to
Licensee shall not constitute a course of dealing, course of conduct or
amendment to this XML Software License Agreement creating a future obligation
to provide the same.

 

Definition of Software.
As used in this XML Software License Agreement, “Software” means application
software supplied by Pegasus to Customer that parses and formats data utilizing
the Extensible Markup Language specification, and all modifications and
enhancements to, and replacements of, such software.

 

9

 

	
  Region:  circle one

  1       2      
  3       4       5      
  6       7       

  8       9      
  10       11       12       13

  	
  Pricing Schedule

  (UltraDirect)

  

 

This Pricing Schedule is
attached to and a part of the Master Services Agreement with the Effective Date
of                  ,
200     , by and between Pegasus Solutions, Inc. and
Cendant Travel Distribution Services Group, Inc.

 

1.             Definitions. All capitalized terms used
in this Pricing Schedule but not defined herein shall have the meanings set
forth elsewhere in this Agreement. In addition, the following definitions shall
apply for purposes of this Pricing Schedule:

 

(a)                                  Pricing Schedule Effective Date means                            ,
200      .

 

(b)           Billing Period means the period of time to
which a billing statement issued by Pegasus relates.

 

(c)           UltraDirect
Net Reservations means the number of reservations transmitted through the
UltraDirect Interface (as defined in the UltraDirect Services Schedule) during
a particular time period, less the number of cancellations of reservations
transmitted through the UltraDirect Interface during the same time period.

 

2.             UltraDirect Net Reservation Fee. Pegasus
shall pay a Net Reservation Fee for each Net Reservation processed during that
calendar month as follows:

 

	
  Net
  Reservations

  	
   

  	
  Fee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than or equal to 25,000

  	
   

  	
   

  	
  (***)

  	
   

  
	
  25,001-50,000

  	
   

  	
   

  	
  (***)

  	
   

  
	
  50,001-100,000

  	
   

  	
   

  	
  (***)

  	
   

  
	
  100,001-150,000

  	
   

  	
   

  	
  (***)

  	
   

  
	
  150,001-200,000

  	
   

  	
   

  	
  (***)

  	
   

  
	
  More than 200,000

  	
   

  	
   

  	
  (***)

  	
   

  

 

3.             Look to Book Transactional Efficiency. For
any calendar month in which the Look to Book Ratio as specified in paragraph
3(d) of the UltraDirect Services Schedule exceeds 1,000:1 then the Net
Reservation fee payable by Pegasus to Customer pursuant to paragraph 2 above
with respect to each Net Reservation processed during such month shall be
reduced in accordance with the following table:

 

	
  Look to
  Book Ratio

  	
   

  	
  Reduction in Net Reservation Fee

  Payable by Pegasus to Customer

  	
   

  	
  Reduction in Net Reservation

  Fee Payable by Pegasus to

  Customer

  	
   

  
	
   

  	
   

  	
  (Effective Date through

  August 31, 2005)

  	
   

  	
  (September 1, 2005 onward)

  	
   

  
	
  1,001:1 but not more than 1,300:1

  	
   

  	
   

  	
  (***)

  	
   

  	
   

  	
  (***)

  	
   

  
	
  1,301:1 but not more than 1,600:1

  	
   

  	
   

  	
  (***)

  	
   

  	
   

  	
  (***)

  	
   

  
	
  More than 1,600:1

  	
   

  	
   

  	
  (***)

  	
   

  	
   

  	
  (***)

  	
   

  

 

If after applying the reduction to the Net Reservation Fee payable by
Pegasus as set forth above results in a negative amount payable by Pegasus (“Excess
Amount”) for that calendar month, then such Excess Amount shall be applied to
reduce/offset any other amounts owed by Pegasus to Customer under this
Agreement including, but not limited to, any service level credits; provided,
however, if there is no such other amount owed by Pegasus to Customer then such
Excess Amount will be carried over and applied to reduce any Net Reservation Fees
or other fees payable by Pegasus to Customer under this Agreement for the
following calendar month and each calendar month thereafter as long an any
Excess Amount remains.

 

1

 

4.             Online
Distribution Database Download Fee. If Customer chooses to download to
Customer’s Web Site information in the Online Distribution Database pursuant to
paragraph 7 of the UltraDirect Services Schedule, Customer shall pay to
Pegasus a monthly fee as follows:

 

	
  Net Reservations

  	
   

  	
  ODD
  Download Fee

  
	
  75,000 and greater

  	
   

  	
  (***)

  
	
  Less than 75,000

  	
   

  	
  (***)

  

 

5.             Geo Search and Geo Search Map Fees.

 

(a)           Annual License Fee. If during any calendar
year Customer utilizes the Geo Search or Geo Search Maps functionality or an
accessor of Customer’s Web Site transmits a Geo Search or Geo Search Map
request, Customer shall pay to Pegasus an annual mapping license fee of (***).

 

(b)           Per Use
Fee. Customer shall pay to Pegasus a fee with respect to each
Billing Period equal to the product of (i) the sum during such Billing Period
of the number of transmissions from Customer’s Web Site of (A) Geo Search
requests, plus (B) Geo Search Map requests, plus (C) requests to (1) pan, (2)
zoom in, (3) zoom out, (4) move up, (5) move down, (6) move right or (7) move
left while viewing the response to any Geo Search Map request; multiplied by
(ii) (***).

 

(c)           Change in
Fees. If the per transmission amount charged to Pegasus by the third
party vendor of the Geo Search and Geo Search Maps functionality is increased,
the fee paid by Customer pursuant to paragraph 5(b) above shall be increased by
the same amount.

 

(d)           Definitions.
For purposes of this paragraph, “Geo Search”, “Geo Search Maps” and “Customer’s
Web Site” have the meanings set forth in the UltraDirect Services Schedule.

 

6.             Professional Services Fees.

 

(a)           Implementation. Customer shall pay to
Pegasus a fee of (***) for Pegasus’ implementation of the Services in
accordance with the plan and schedule of implementation mutually agreed by the
parties. Such fee shall become due and payable from Customer to Pegasus on the
Pricing Schedule Effective Date.

 

(b)           Other Professional Services. Customer shall
pay fees to Pegasus for Pegasus’ performance of professional services (other
than those relating to the immediately preceding subparagraph) at Pegasus’
then-standard hourly rate for such technical and/or professional services (not
to exceed (***) per hour) as specified in the work order, statement of work or
similar document executed by Pegasus and Customer regarding the professional
services performed.

 

7.                                       (***)

 

8.                                       Term. This Pricing Schedule shall be
effective as of the Pricing Schedule Effective Date and shall continue in
effect thereafter with respect to each Service that Pegasus provides pursuant
to this Agreement until such time as this Pricing Schedule has been terminated
or replaced with respect to such Service.

 

2

 

	
  PEGASUS SOLUTIONS, INC.

  	
   

  	
  CENDANT TRAVEL DISTRIBUTION SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  RALPH E. COMPTON III

  	
   

  	
  By:

  	
  /s/
  JEFF HORCH

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Ralph
  E. Compton III

  	
   

  	
  Print:

  	
  Jeff
  Horch

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  August
  9, 2005

  	
   

  	
  Title:

  	
  August
  8, 2005

  	
   

  

 

3

 

Commission Processing

Member Services Schedule

(ERTS)

 

This Commission Processing Member Services Schedule is attached to and
a part of the Master Services Agreement with the Effective Date of                    ,
2005, by and between Pegasus Solutions, Inc. (“Pegasus”) and Cendant Travel
Distribution Services Group, Inc. (“Customer”).

 

1.             Definitions. All capitalized terms used
in this Commission Processing Member Services Schedule but not defined herein
shall have the meanings set forth elsewhere in this Agreement. In addition, the
following definitions shall apply for purposes of this Commission Processing
Member Services Schedule:

 

(a)           Commission Processing Member Services Schedule Effective Date
means
                          ,
2005.

 

(b)           Commission means a payment owed to Customer for distribution
services provided by Customer, whether such payment is in the form of a
percentage commission or payment, payment of a flat fee or payment of an
incentive or override.

 

(c)           Commission Response means a record, other than a Participant
Commission Record, of the determination by a Commission payor of the amount
due, or of the amount paid by a Commission payor, to Customer for the sale of a
reservation by means of Customer’s services.

 

(d)           Electronic Reconciliation and Tracking is
the trade name for Pegasus’ services described in paragraph 3 of this Agreement

 

(e)           Member Commissions means an amount equal to
the aggregate Commissions received by Pegasus from all Participants, less any
applicable fees authorized by the Pricing Schedule and any applicable Taxes.

 

(f)            Member Commission Statement means a record of all
Participant Commission Records communicated to Pegasus with respect to a given
payment of Member Commissions.

 

(g)           Participant means an entity that is subject
to an agreement pursuant to which Pegasus processes such party’s payment of
Commissions.

 

(h)           Participant Commission Record means a
record (i) of the determination by a Participant of the amount of one or more
Commissions due to Customer; and (ii) that is communicated to Pegasus by
such Participant for processing by Pegasus Commission Processing.

 

(i)            Payment Period means the period of time to
which a payment of Member Commissions relates.

 

(j)            Pegasus Commission Processing is the trade
name for Pegasus’ services described in paragraph 2 of this Agreement

 

(k)           Underpayment means the payment to Pegasus
by a Participant of funds relating to Pegasus Commission Processing in an
amount less than the amount specified by Pegasus for such payment.

 

2.             Pegasus
Commission Processing Services.  Pegasus shall, on a weekly basis, or as otherwise
agreed by the parties:

 

(a)           consolidate by Participant those Participant Commission
Records and Commissions received by Pegasus with respect to the immediately
preceding Payment Period;

 

(b)           transmit
to Customer the Member Commission Statement relating to the immediately
preceding Payment Period, provided that no Member Commission Statement will be
generated if no Member Commissions are paid; and

 

(c)           distribute to Customer, in the currency requested by
Customer from a list provided by Pegasus, the Member Commissions relating to
the immediately preceding Payment Period.

 

Notwithstanding paragraph 2(c) above, Pegasus shall have no
obligation to pay to Customer any amount relating to an Underpayment until
Pegasus receives the balance of the Underpayment from the relevant Participant.

 

1

 

 

3.             Electronic Reconciliation and Tracking Services.
Pegasus agrees to perform the following services with respect to all Commission
payors:

 

(a)           enter
into its Electronic Reconciliation and Tracking system the following
information received from Customer or third parties: (i) Commission Responses
received by Customer; (ii) Commission Responses received by Pegasus on Customer’s
behalf from travel suppliers that are not Participants; and (iii) payments
received by Customer from Commission payors;

 

(b)           match
reservation information received by Pegasus from Customer to reservation
information received by Pegasus from Commission payors, and report the
Commission Responses that have been received by Pegasus and that relate to such
reservation information;

 

(c)           based
upon information generated by the process described in paragraph 3(b) above,
track overdue Commissions on a continuing basis and request payment of each
overdue Commission for up to 180 days after the end of the month to which the
associated reservation relates; and

 

(d)           provide
reports to Customer setting forth, in detail and summary form, the information
used in or generated by the processes described in paragraphs 3(a), 3(b) and
3(c) above.

 

4.             Customer’s Duties. Customer shall:

 

(a)           except
for merchant transactions, refrain from acting to circumvent the processing of
Commissions pursuant to this Commission Processing Member Services Schedule
unless otherwise agreed to between the parties;

 

(a)           provide
Pegasus with all Customer ARC/IATA numbers, and promptly notify Pegasus of
additions and changes to, and deletions of, such numbers; and

 

(b)           provide
to Pegasus no later than the fifth (5th) business day after the end
of each calendar month or as otherwise agreed by the parties (i) a file
containing all reservation information relating to such calendar month, such
file to designate each such reservation that is non-commissionable; and (ii)
all Commission Responses in the form of statements, copies of checks or other
mutually agreed verification of payments received directly by Customer from
Commission payors.

 

5.             Affiliates. The parties agree that, in
addition to Customer, (a) Pegasus shall provide Pegasus Commission Processing
and Electronic Reconciliation and Tracking pursuant to this Agreement to those
Affiliates that are designated in writing by Customer for the provision of such
services; and (b) the terms of this Commission Processing Member Services
Schedule shall be applicable to each designated Affiliate and Customer shall
use commercially reasonable efforts to cause each designated Affiliate to
observe and comply with the same. Customer acknowledges that it has the authority
to direct Pegasus to provide Pegasus Commission Processing and Electronic
Reconciliation and Tracking to each Affiliate designated by Customer for the
provision of such services. Customer shall indemnify, defend and hold harmless
Pegasus and its subsidiaries, and the officers, directors employees and agents
of the same, from and against all losses, claims, liability, costs, damages,
fines, and expenses (including all reasonable legal costs) incurred or suffered
by any of the indemnified parties that arise out of or in connection with any
claim that any of Customer’s Affiliates did not elect to receive the Services
hereunder from Pegasus through Customer.

 

6.             Additional Terms. No dispute between
Customer and any Commission payor concerning any Commission shall in any way
affect or reduce the obligations of Customer to abide by the terms of this
Commission Processing Member Services Schedule. Customer shall, promptly after
receiving notice from Pegasus, repay to Pegasus any confirmed amounts paid in
error to Customer pursuant to this Commission Processing Member Services
Schedule. Customer acknowledges that Pegasus incurs costs and risks in
converting currency for the benefit of Customer and agrees that Pegasus may
include its standard margin or markup in the exchange rate to cover these
items.

 

7.             Disclaimer. Customer agrees that
the services to be rendered by Pegasus pursuant to this Commission Processing
Member Services Schedule are those of a clearinghouse only and, accordingly,
(a) Pegasus’ obligation to make payments to Customer is limited to the amount
of Member Commissions actually received by Pegasus, and (b) under no
circumstances shall Pegasus be responsible for collecting Commissions owed to
Customer or for uncollected Commissions due to Customer.

 

2

 

8.             Term. This Commission Processing Member
Services Schedule shall be effective as of the Commission Processing Member
Services Schedule Effective Date and shall continue in effect for an initial
term of two (2) years from such date unless terminated earlier as provided in
this Agreement, provided that Orbitz, LLC may terminate this Commission
Processing Member Services Schedule, as it pertains to Orbitz, LLC, at any time
after one (1) year. The term of this Commission Processing Member Services Schedule
shall thereafter automatically renew for additional, successive three (3) month
terms unless either party provides written notice to the other party of its
intent to terminate this Commission Processing Member Services Schedule at
least ninety (90) days prior to the expiration of the then current term.

 

	
  PEGASUS SOLUTIONS, INC.

  	
   

  	
  CENDANT TRAVEL DISTRIBUTION SERVICES

  GROUP, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  RALPH E. COMPTON III

  	
   

  	
  By:

  	
  /s/
  JEFF HORCH

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Ralph
  E. Compton III

  	
   

  	
  Name:

  	
  Jeff
  Horch

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  August
  9, 2005

  	
   

  	
  Date:

  	
  August
  8, 2005

  	
   

  

 

3

 

Pricing Schedule

Commission Processing -

ERTS

 

This Pricing Schedule is attached to and a part of the Master Services
Agreement with the Effective Date of                         ,
2005, by and between Pegasus Solutions, Inc. and Cendant Travel Distribution
Services Group, Inc.

 

1.             Definitions. All capitalized terms used
in this Pricing Schedule but not defined herein shall have the meanings set
forth elsewhere in this Agreement. In addition, the following definitions shall
apply for purposes of this Pricing Schedule:

 

(a)           Pricing Schedule Effective Date means                                         ,
2005.

 

2.             Pegasus Commission Processing Services.  For Pegasus’ performance of
services pursuant to paragraph 2 of the Commission Processing Member Services
Schedule, Customer shall pay Pegasus a fee equal to (***) of the total
Commissions paid by Participants to Customer as set forth on the Member
Commission Statements. Costs associated with tapes or diskettes and other
optional services, if any, requested by Customer shall be as agreed to in
writing between the parties. Notwithstanding any other provision of this
Agreement, the fees and costs set forth in the preceding sentence, and any
Taxes, shall be deducted by Pegasus from the Commissions paid by Participants
to Customer.

 

3.             Electronic Reconciliation and Tracking Services.
For Pegasus’ performance of services pursuant to paragraph 3 of the Commission
Processing Member Services Schedule, Customer shall pay to Pegasus:

 

(a)           (***) of the total Commissions, with
respect to which Pegasus performed the service described in subparagraph 3(c)
of the Commission Processing Member Services Schedule, paid by Participants to
Customer as set forth on the Member Commission Statements; plus

 

(b)           (***)
of the total Commissions, with respect to which Pegasus performed the service
described in subparagraph 3(c) of the Commission Processing Member Services
Schedule, paid by Commission payors to Customer as set forth on the reports
described in subparagraph 3(d) of the Commission Processing Member Services
Schedule (other than Member Commission Statements). (***); plus

 

(c)           (i.)           (***) for each
Commission Response received for Orbitz with respect to which Pegasus performs
the service described in subparagraph 3(a) of the Commission Processing Member
Services Schedule; provided that, if Customer fails to provide Commission
Responses as agreed by the parties, Customer shall pay Pegasus an amount equal
to the amount paid by Customer pursuant to this subparagraph immediately prior
to such failure.

 

(ii.)          (***) for each Commission Response received
for all other affiliates with respect to which Pegasus performs the service
described in subparagraph 3(a) of the Commission Processing Member Services
Schedule; provided that, if Customer fails to provide Commission Responses as
agreed by the parties, Customer shall pay Pegasus an amount equal to the amount
paid by Customer pursuant to this subparagraph immediately prior to such
failure.

 

All fees due
pursuant to this paragraph shall be in addition to the fees and costs set forth
in the immediately preceding paragraph, if any, that are due with respect to
the subject Commissions. Notwithstanding any other provision of this Agreement,
all fees due pursuant to this paragraph shall be deducted by Pegasus from the
Commissions paid by Participants to Customer.

 

4.             Renegotiation of Fees. If (a) the
number of commissionable reservations set forth on three consecutive Member
Commission Statements is less than (***) of the total number of reservations
set forth on such Member Commission Statements, or (b) the average commission
rate applicable to the commissionable reservations set forth on three consecutive
Member Commission Statements is less than (***), then (y) Pegasus and Customer
shall promptly enter into good faith negotiations to amend the preceding
paragraph of this Pricing Schedule entitled “Pegasus Commission Processing
Services”

 

1

 

(and the preceding paragraph entitled “Electronic Reconciliation and
Tracking Services”, if included in this Pricing Schedule) in a mutually
agreeable manner; and (z) in the absence of such an amendment, Pegasus shall
have the right to terminate the Commission Processing Member Services Schedule
sixty (60) days after the commencement of such negotiations.

 

5.             Professional Services Fees.

 

(a)           Implementation. Waived.

 

(b)           Other Professional Services. Customer shall
pay fees to Pegasus for Pegasus’ performance of professional services (other
than those relating to the immediately preceding subparagraph (a)) as specified
in the work order, statement of work or similar document executed by Pegasus
and Customer regarding the professional services performed.

 

6.             Term. This Pricing Schedule shall be
effective as of the Pricing Schedule Effective Date and shall continue in
effect thereafter with respect to each Service that Pegasus provides pursuant
to this Agreement until such time as this Pricing Schedule has been terminated
or replaced with respect to such Service.

 

	
  PEGASUS SOLUTIONS, INC.

  	
   

  	
  CENDANT TRAVEL DISTRIBUTION SERVICES

  GROUP, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  RALPH E. COMPTON III

  	
   

  	
  By:

  	
  /s/
  JEFF HORCH

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Ralph
  E. Compton III

  	
   

  	
  Print:

  	
  Jeff
  Horch

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  August
  8, 2005

  	
   

  	
  Date:

  	
  August
  8, 2005Exhibit 10.27

 

SOFTWARE LICENSE AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

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

 

1.             DEFINITIONS

 

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

 

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

 

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

 

 

(d)           (***)

 

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

 

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

 

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

 

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

 

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

 

(j)            “International Use” means Galileo’s use of the International
Version of the Licensed Software for the purpose of serving Online Users (***).

 

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

 

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

 

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

 

2

 

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

 

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

 

(p)           (***)

 

(q)           (***)

 

(r)            (***)

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

2.             LICENSE GRANT

 

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

 

(b)           Restrictions.

 

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

 

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

 

4

 

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

 

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

 

As used in this
subsection (iv):

 

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

 

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

 

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

 

“Low Fare
Searching” shall mean the capability for retrieving flight
information and selecting flights (which may or may not include flight
connections) optimized for cost based on,

 

5

 

among other things, one or more of the following:  travel origin, travel destination, travel
date, and/or class of service.

 

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

 

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

 

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

 

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

 

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

 

3.             SERVICES

 

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

 

6

 

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

 

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

 

4.             DELIVERY AND ACCEPTANCE

 

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

 

(b)           Testing.

 

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

 

(ii) (***)

 

7

 

 

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

 

5.             OWNERSHIP  OF SOFTWARE

 

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

 

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

 

8

 

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

 

6.             FEES AND EXPENSES

 

(a)           Online License Fee.

 

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

 

	
  Number
  of PNR’s during Year

  	
   

  	
  Fee per PNR

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (***)

  	
   

  	
  $

  	
  (***)

  	
   

  

 

 

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

 

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

 

9

 

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

 

(A) the greater of:

 

(x) (***)

 

(y) (***)

 

less

 

(B) (***)

 

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

 

Example:

 

Calculation
of year-to-date Online License Fee:

 

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

 

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

 

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

 

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

 

10

 

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

 

Calculation
of Amount Due for the License Month:

 

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

 

End
example.

 

(b)           (***)

 

(c)           Bundled License Fee.

 

(i) In lieu of the
foregoing Online License Fee and (***), Galileo may elect to pay a bundled fee
for all components of the Licensed Software (the Online Use, (***), and the
International Version), as follows: 
Galileo would pay to ITA an annual base license fee for the Licensed
Software in the amount of (***) (the “Annual Base License Fee”).
The Annual Base License Fee will include the following uses or functionalities
of the Licensed Software:  (A) the
creation of up to (***) PNRs per License Year by Online Users (with additional
PNRs above (***) being charged pursuant to the provisions of clause (ii)
below); and (B) (***). In the event Galileo elects to pay the Annual Base
License Fee, Galileo will use the Licensed Software in a manner generally
consistent with its existing offline business model (measured in terms of
look-to-book productivity or a similar metric, which the parties will agree at
the time of election and which Galileo will implement sufficient technical
capabilities to measure). (***)

 

11

 

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

 

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

 

(iii) (***)

 

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

 

(d)           (***)

 

 

12

 

(e)           (***)

 

13

 

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

 

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

 

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

 

14

 

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

 

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

 

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

 

7.             TERM AND TERMINATION

 

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

 

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

 

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

 

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

 

15

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

8.             REPRESENTATIONS AND WARRANTIES

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

9.             INDEMNIFICATION

 

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

 

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

 

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

 

10.          LIMITATION OF LIABILITY

 

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

 

19

 

WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE. THE
LIMITATIONS CONTAINED IN THIS SECTION SHALL NOT APPLY TO THE PARTIES’
INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 9, A BREACH BY EITHER PARTY OF
SECTION 12 (CONFIDENTIALITY), A BREACH BY GALILEO OF SECTION 6 (FEES AND
EXPENSES) OR SECTION 11 (d) (CONFIDENTIALITY OF SOURCE CODE) OR THE WILLFUL OR
RECKLESS ACTS OF EITHER PARTY.

 

11.          SOURCE CODE ESCROW

 

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

 

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

 

20

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

21

 

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

 

12.          CONFIDENTIAL INFORMATION

 

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

 

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

 

22

 

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

 

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

 

13.          RELATIONSHIP OF THE PARTIES

 

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

 

14.          PUBLICITY

 

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

 

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

 

15.          DISPUTE RESOLUTION

 

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

 

23

 

16.          MISCELLANEOUS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

24

 

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

 

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

 

 

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

 

	
   

  	
  GALILEO INTERNATIONAL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  KENNETH ESTEROW

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Kenneth
  Esterow

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ITA SOFTWARE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JEREMY
  WERTHEIMER

  
	
   

  	
   

  	
  Jeremy
  Wertheimer, President

  
						

 

 

25

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