Document:

Exhibit

10.2

 

MASTER

AGREEMENT

 

dated as

of

 

February

6, 2002

 

among

 

National

Association of Securities Dealers, Inc.

 

The

Nasdaq Stock Market, Inc.

 

American

Stock Exchange Membership Corporation

 

Nasdaq

Financial Products Services, Inc.

 

and

 

American

Stock Exchange, LLC

 

 

MASTER

AGREEMENT

 

This Master Agreement,

dated as of February 6, 2002 (Effective Date), is made by and among the National

Association of Securities Dealers, Inc., a Delaware nonprofit corporation with

its principal place of business located at 1735 K Street, N.W., Washington, DC

20006 (NASD),

The Nasdaq Stock Market, Inc., a Delaware corporation with its principal place

of business located at One Liberty Plaza, 165 Broadway, New York, New York

10006 (Nasdaq),

and the American Stock Exchange, LLC, a Delaware limited liability corporation

with its principal place of business located at 86 Trinity Place, New York, New

York 10006 (Amex)

(NASD, Nasdaq and Amex are collectively referred to herein as the Parties and

individually as a Party),

and, for certain provisions, the American Stock Exchange Membership

Corporation, a New York Type A not-for-profit corporation with its principal

place of business located at 86 Trinity Place, New York, New York 10006 (Old Amex) and Nasdaq

Financial Products Services, Inc., a Delaware corporation (Nasdaq FPS)

(collectively, with the Parties, the Participants).

 

RECITALS

 

WHEREAS, in 1998, pursuant to the

Transaction Documents, among other things, (i) Amex acquired substantially all

the assets of and assumed certain liabilities of Old Amex in consideration for

a Class A membership interest in Amex, and (ii) the NASD and NASD Market

Holding Company (later known as The Nasdaq-Amex Market Group, Inc. (Market Group)) made

commitments to Amex, including, without limitation, subject to certain

conditions, that specific technology and related services would be provided to

Amex, all as specified in the Transaction Documents;

 

WHEREAS,

the Market Group no longer exists and: (i) the NASD’s

interest in the Market Group has been transferred to New NASD Holding Company,

Inc (New Holdco);

and (ii) the NASD has assumed any remaining obligations of the Market Group;

 

WHEREAS, the NASD and Nasdaq, formerly a

wholly-owned Subsidiary of the NASD, have taken corporate actions to restructure

and recapitalize Nasdaq through:  (i) a

two phase private placement of Nasdaq securities  with the first phase closing on June 28, 2000 and the second

phase closing on January 18, 2001; and (ii) the sale and issuance of $240

million convertible subordinated debentures of Nasdaq to Hellman & Friedman

Capital Partners IV, L.P. and certain of its affiliated limited partnerships,

the proceeds from which were used to repurchase shares of Nasdaq common stock

owned by the NASD; and the result of which is that Nasdaq is no longer a

wholly-owned Subsidiary of the NASD;

 

WHEREAS, the NASD, Nasdaq and Amex now intend to provide for certain

transfers of Nasdaq Technology to Amex and enter into certain business

arrangements; and

 

2

 

WHEREAS, the Participants wish to govern their ongoing relationships as of

the Effective Date by the terms and conditions of this Agreement;

 

NOW,

THEREFORE, in consideration of the foregoing and the

covenants and agreements set forth below and for good and valuable

consideration, the Participants, hereby agree as follows:

 

ARTICLE

1

 

Definitions

and Construction.

 

Section 1.01   Defined

Terms. 

Capitalized terms  that are not

otherwise defined herein shall have the meanings ascribed to them in the  Transaction Agreement (as hereinafter

defined). The following terms, as used herein, shall have the following

meanings:

 

“Affiliate” of any specified Person means

any other Person directly or indirectly Controlling, Controlled by, or under

common Control with, such specified Person. It is understood, however, that none of the NASD, Nasdaq or

any Person directly or indirectly Controlled by Nasdaq shall be considered an

Affiliate of Amex; none of the NASD, Amex or any Person directly or indirectly

Controlled by Amex shall be considered an Affiliate of Nasdaq; and none of

Nasdaq, any Person directly or indirectly Controlled by Nasdaq, Amex or any

Person directly or indirectly Controlled by Amex shall be considered an

Affiliate of the NASD.

 

“Agreement” means this Master Agreement by and among the NASD, Nasdaq, Amex, Old Amex

and Nasdaq FPS and any exhibits to this Agreement and all references to

this Agreement will include the exhibits, and any attachments thereto.

 

“Amex” means the American Stock Exchange,

LLC.

 

“Assets” means any and all assets,

properties and rights owned by a 

Participant, whether tangible or intangible, whether real, personal or

mixed, whether fixed, contingent or variable.

 

“Business

Day” means any 

Monday, Tuesday, Wednesday, Thursday or Friday on which Amex and Nasdaq

are open for trading and on which banking institutions in the State of New York

are not authorized or obligated by Law to close.

 

“Confidential Information” means any

information received from a Participant, either orally or in writing (hard copy

or electronic) prior to or after the Effective Date, relating to the business,

affairs, operations or customers of such Participant including, but not limited

to, information that relates or refers to: business planning; internal

controls; computer, data processing, or communications architectures or

systems; electronic data processing architectures, applications, programs,

routines, or subroutines; business affairs and methods of operation or proposed

methods of operation, techniques or systems of a Participant or any customer of

a Participant or financial or

 

3

 

other information.  Notes,

documents, summaries, analyses or reports which are prepared from Confidential

Information to the extent such items specifically incorporate, refer to, or

relate to Confidential Information are themselves deemed to be Confidential

Information.  Notwithstanding the

foregoing, Confidential Information will not include information that the

Participant receiving the information can demonstrate is or was: (i) revealed

to such Participant on a non-confidential basis prior to its disclosure by the

other Participant, (ii) publicly known other than by the breach of this

Agreement or by breach of any other agreement or obligation between or among

the Participants hereto and/or any of their respective Affiliates or

Representatives relating to confidentiality, or (iii) lawfully acquired on a

non-confidential basis or independently developed by a Participant who did not

have access to any such Confidential Information, or on behalf of a Participant

by Persons who did not have access to any such Confidential Information.

 

“Contract” means any contract, agreement,

lease, license, sales order, purchase order, instrument or other commitment

that is binding on any Person or any part of its property under applicable law.

 

“Control” means the possession, direct or

indirect, of the power to direct or cause the direction of the management of

the policies of a Person, whether through the ownership of voting securities,

by contract or otherwise.

 

“Domestic”

means the geographic areas including, but not limited to, dependencies,

possessions, protectorates and territories over which the sovereignty of the

United States extends.

 

“ETF” means

an exchange traded  fund.  ETFs are actively traded on an exchange and

are continually repriced to reflect the results of commercial transactions

involving them. This is in contrast to mutual funds that are only priced once

at the close of each Business Day.  For

purposes of this Agreement, ETF does not include QQQ.

 

“Foreign”

means any geographic area including, but not limited to, any dependency,

possession, protectorate or territory that is not under the sovereignty of the

United States.

 

“Governmental Entity” means any government

or political subdivision thereof, whether federal, state, local or foreign, any

agency or instrumentality of or chartered by any such government or political

subdivision, any court, commission, board, tribunal (including arbitration

tribunal) or judicial authority thereof.

 

“Hardware” means the hardware listed on an

Exhibit to the Technology Transition Agreement.

 

“Indemnifying Participant” means a

Participant that is obligated to provide indemnification pursuant to Article 3

of this Agreement.

 

“Indemnitee” means a Person that is

entitled to seek indemnification pursuant to Article 3 of this Agreement.

 

4

 

“Intellectual Property” means any and all

domestic and foreign patents and patent applications, together with any

continuations, continuations-in-part or divisional applications thereof, and

all patents issuing thereon (including reissues, renewals and re-examinations

of the foregoing); invention disclosures; mask works; copyrights, and copyright

applications and registrations; trademarks, service marks, service names, trade

names, and trade dress, in each case together with any applications and

registrations therefor and all appurtenant goodwill relating thereto; trade

secrets, and all other intellectual property under the laws of any country

throughout the world.

 

“Interest”

means the prime commercial rate as announced from time to time by JPMorgan

Chase & Co. at its principal office in the United States plus one percent

per annum.

 

“Law” means any

declaration, decree, directive, legislative enactment, order, ordinance,

regulation, rule or other binding restriction of or by any Governmental Entity.

 

“Liabilities” means any and all debts,

liabilities, commitments and obligations, whether fixed, contingent or

absolute, matured or unmatured, liquidated or unliquidated, accrued or not

accrued, known or unknown, whenever or however arising (including, without

limitation, whether arising out of any Contract or tort based on negligence or

strict liability) and whether or not the same would be required by generally

accepted accounting principles to be reflected in financial statements or

disclosed in the notes thereto.

 

“Losses” means any Liability, loss, damage,

claim, charge, action, proceedings, deficiency, payments, interest, penalty,

costs and expenses (including reasonable attorney’s fees).

 

“Market Group” means The Nasdaq-Amex Market

Group, Inc., originally incorporated under the name NASD Market Holding Company.

 

“Material

Adverse Effect” means a material adverse effect on the

business, property, Assets, Liabilities, operations, condition (financial or

otherwise) or prospects of a Participant and its Subsidiaries taken as a whole.

 

“NASD” means the National Association of

Securities Dealers, Inc.

 

“Nasdaq” means The Nasdaq Stock Market,

Inc.

 

“Nasdaq FPS” means Nasdaq Financial

Products Services, Inc.

 

“Nasdaq

Technology” means all the Software, Hardware, data or

information, and/or services as set forth herein to be provided to Amex as set

forth in the Technology Transition Agreement.

 

“New Holdco” means the New NASD Holding

Company, Inc.

 

5

 

“Old Amex” means the American Stock

Exchange, Inc.

 

“Participants” means NASD, Nasdaq, Amex, Old

Amex and Nasdaq FPS collectively.

 

“Parties” means, collectively, NASD,

Nasdaq, and Amex.

 

“Person” means an individual, partnership,

limited liability company, joint venture, corporation, trust, unincorporated

association, any other entity, or a government or any department or agency or

other unit thereof.

 

“QQQ”

which is otherwise known as the Nasdaq-100 Index Tracking Stock  represents undivided ownership

interests in the Nasdaq-100 Trust, Series 1. The Nasdaq-100 Trust, Series

1 is a unit investment trust designed to closely track the price and yield

performance of the stocks of the companies that comprise the Nasdaq-100 Index.

Nasdaq FPS is the sponsor of the Nasdaq-100 Trust and must exercise its

fiduciary duties to the Nasdaq-100 Trust in its performance of this

Agreement.  The Nasdaq 100-Trust, Series

1 trades on the Amex under the symbol “QQQ” and has a minimum trading unit of 1

Share of Nasdaq-100 Index Tracking Stock.

 

“Related Documentation”

means, with respect to the Software, Systems and Hardware and related tools and

utilities that are provided to one Party by another Party pursuant to the

Technology Transition Agreement, all materials, documentation, specifications,

technical manuals, user manuals, flow diagrams, file descriptions and other

written information, to the extent it exists in the possession of the providing

Party, and that the receiving Party reasonably requires for the purposes for

which the Software, Systems and Hardware and related tools and utilities are provided.

 

“Representatives” means directors,

officers, employees, agents, consultants, advisors, accountants, attorneys and

other representatives.

 

“SEC” means the United States Securities and

Exchange Commission.

 

“Software”   means the set of programs (object code, and

if so noted in the  Technology

Transition Agreement, source programs) 

and Related Documentation in whatever form or media, required to be

provided under the provisions of the Technology Transition Agreement by one

Party to another Party.

 

“Standardized Options” means, collectively, any  options

issued or cleared through The Options Clearing Corporation or its successor or

standardized options in securities (including American Depositary Receipts or

their equivalent) issued or cleared by another equivalent clearing corporation.

 

“Stipulation

of Settlement” means the stipulation of settlement, dated November

24, 1998, and final order and judgment in Philipson v. American Stock

 

6

 

Exchange, Inc., et al, United States

District Court for the Southern District of New York, 98 Civ. 4219 (DC).

 

“Subsidiary” means with respect to any

specified Person, any corporation or other legal entity of which such Person or

any of its Subsidiaries Controls or owns, directly or indirectly, more than 50%

of the stock or other equity interest entitled to vote on the election of the

members to the board of directors or similar governing body.

 

“Systems”  means

the Software, Hardware and related tools, utilities and equipment,

collectively, used by a Party to perform the Technology Transition Agreement.

 

“Technology Agreement” means that certain

Technology Transfer and Development Agreement, dated as of October 30, 1998,

among Amex, NASD, Market Group and Old Amex, including all exhibits and

schedules thereto.

 

“Technology Transition Agreement” means

that certain  Technology Transition

Agreement, dated as of the date hereof, among 

NASD, Nasdaq, and Amex, including all exhibits and schedules thereto.

 

“Third-Party Claim” means any claim, suit,

arbitration, inquiry, proceeding or investigation by or before any court,

governmental or other regulatory or administrative agency or commission or any

arbitration tribunal asserted by a Person other than a Participant or its

respective Affiliates which gives rise to a right of indemnification hereunder.

 

“Transaction Agreement” means that certain

Transaction Agreement, dated as of May 8, 1998, among NASD, Market Group, Amex

and Old Amex and each of its subsidiaries, including all exhibits and schedules

thereto, as amended as of October 30, 1998, including all exhibits and

schedules thereto, and as further amended by the Stipulation of Settlement.

 

“Transaction Documents” means collectively,

(i) the Transaction Agreement, (ii) the Limited Liability Company Agreement of

Amex, dated as of October 30, 1998, among Market Group, Old Amex and Amex, and

(iii) the Technology Agreement.

 

“Transferee” means any Person that will

receive a transfer of Assets pursuant to Article 2.

 

“Transferor” means any Person that will

make a transfer of Assets pursuant to Article 2.

 

7

 

Section 1.02  

Incorporation and References  In this Agreement and the Exhibits to this Agreement:

 

(1)                                  the

Exhibits to this Agreement are hereby incorporated into and deemed part of this

Agreement and all references to this Agreement or any other agreements will

include the Exhibits, and any attachments thereto;

 

(2)                                  references

to an Exhibit, Section or Article will be to such Exhibit to, or Section or

Article of this Agreement, unless otherwise provided;

 

(3)                                  references

to days will mean calendar days unless otherwise provided;

 

(4)                                  references

to any Law will mean references to such Law in changed or supplemented form or

to a newly adopted Law replacing a previous Law; and

 

(5)                                  references

to and mention of the word “including” or the phrase “e.g.” will mean

“including, without limitation.”

 

Section 1.03   Headings.  The Article and Section headings, Table of

Contents and Table of Exhibits are for reference and convenience only and will

not be considered in the interpretation of this Agreement.

 

Section 1.04   Interpretation

of Documents. 

Except as otherwise expressly set forth in the body of this Agreement or

in any of the Exhibits, in the event of a conflict between the provisions in

the body of this Agreement and an Exhibit that expressly relate to the subject

of such conflict, the provisions of such Exhibit will prevail.  The words “hereof,” “herein,” and

“hereunder” and words of similar import shall refer to this Agreement as a

whole and not to any particular provision of this Agreement.

 

Section 1.05   [Reserved]

 

Section 1.06   Mutual

Release and Discharge. 

The Parties and Old Amex hereby acknowledge and agree that on and as of

the Effective Date:

 

(i)            each

of the NASD, Amex and Old Amex, for itself, its Subsidiaries, Affiliates,

successors in interest and assigns, hereby unconditionally releases and forever

discharges Nasdaq, its Subsidiaries, Affiliates, successors, assigns and employees,

from all past, present and future claims, Losses, demands, actions and causes

of action of any kind or nature, whether known or unknown (collectively, Claims), arising from

or relating to the Transaction Documents and from all Claims arising from or

related to any relationship of the Parties prior to the Effective Date;

 

(ii)           Nasdaq,

for itself, its Subsidiaries, Affiliates, successors in interest and assigns,

hereby unconditionally releases and forever discharges the NASD, Amex and Old

Amex, their respective Subsidiaries, Affiliates, successors, assigns and

employees, from all past, present and future Claims arising from or relating to

the Transaction

 

8

 

Documents and from all Claims arising from or related to any

relationship of the Parties prior to the Effective Date; and

 

(iii)          each

of Amex and Old Amex for itself, its Subsidiaries, Affiliates, successors in

interest and assigns, hereby unconditionally releases and forever discharges

the NASD, its Subsidiaries, Affiliates, successors, assigns and employees, from

any past, present and future Claims arising directly and solely from the

provision of technologies and services by Nasdaq specified in the Technology

Transition Agreement (excluding AmexOnline). 

Further, to the extent that performance by Nasdaq of the Technology

Transition Agreement would fulfill the NASD’s or Market Group’s obligations

under the Technology Agreement (the Obligations), each of Amex and Old Amex, for

itself, its Subsidiaries, Affiliates, successors, in interest and assigns,

hereby unconditionally releases and forever discharges the NASD, its

Subsidiaries, Affiliates, successors, assigns and employees from any past,

present, and future Claims arising directly and solely from the Obligations

under the Technology Agreement.  *****.

 

The Parties and Old Amex

also hereby ratify NASD’s assumption, and its agreement to be bound by, to

comply with and to timely pay, perform and/or discharge all Liabilities and

obligations of Market Group under the 

Transaction Documents.

 

ARTICLE

2

 

Transfer

of Assets and Related Services

 

Section 2.01   Provision of 

Technology.  The

provision of Nasdaq Technology among the Parties will be governed by the terms

and conditions of the  Technology Transition

Agreement among the Parties, a copy of which is attached hereto as Exhibit D.

 

Section 2.02   Transfer

Documents. 

Each Party hereto agrees to deliver to the other Parties hereto on a

timely basis, without any additional consideration, such other documents,

instruments, certificates and agreements as may be reasonably requested by any

of such other Parties hereto in connection with the transactions contemplated

hereby and to take such further action as may be reasonably necessary to carry

out the provisions hereof, including without limitation, the delivery and

execution of appropriate transfer instruments.

 

Section 2.03   Trading

Rights.

 

Section 2.03.1  Options.  ****

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

9

 

Section 2.03.2  ETFs.  Nasdaq agrees that, until *****,

neither Nasdaq nor any of its Affiliates will list shares in any ETF that, as

of the Effective Date : (i) is listed on the Amex; or (ii) Amex or its issuers

have publicly announced will be listed on the Amex.  Through ****, neither Nasdaq nor any of its Affiliates will,

consistent with its contractual obligations existing on the Effective Date,

discriminate against Amex in the licensing of trading rights to Domestic ETFs,

and if Nasdaq or any of its Affiliates licenses Domestic trading rights to an

ETF to a third party, Nasdaq or its applicable Affiliate will also make

available to Amex a non-exclusive license to trade such ETF Domestically at a

reasonable and usual commercial rate.

 

Section 2.03.3  QQQ. 

Nasdaq and the QQQ Trust shall grant to Amex, pursuant to the License

Agreement attached hereto as Exhibit E, a license to continuously: (i) list

exclusively and, on a non-exclusive basis, trade and market QQQ Domestically

until ****; and (ii) list, trade and market, QQQ in each Foreign region until

****, on a non-exclusive basis beginning on ****, provided, however, that in Asia such license shall begin on

 ****.  For purposes of  Sections 2.03.3 and 2.03.4 herein, ****.

 

Section 2.03.4 

Annual Fees. 

Beginning in calendar year 2002, Amex will pay an annual fee of up to

$5.5 million to Nasdaq for the right to list, trade and market QQQ.  This fee will be calculated as follows:

 

Section 2.03.4.1  Domestic.  This annual fee will include Amex’s payment

of $4.5 million to Nasdaq for the right to list, trade and market QQQ

Domestically. ****.

 

Section 2.03.4.2  International.  In addition to the $4.5 million Domestic

annual fee, Amex will pay an additional annual fee of $500K to Nasdaq for the

right to trade QQQ in Foreign regions. 

Amex will begin paying this $500K additional annual fee upon its

registration of QQQ for listing on any market in a  Foreign region.  Although

this annual fee will be paid quarterly by Amex on a prorated basis, Amex will

adjust the amount of its payment in the last quarter of each year to ensure

that it has paid the entire $500K fee to Nasdaq on an annual basis.  If Amex does not trade QQQ in any market in

a foreign region, it will no longer be liable to Nasdaq for the payment of this

fee, provided, however, that if

Amex lists or trades QQQ in any market in a Foreign region for at least one day

in any quarter, Amex will remain liable to pay the entire quarterly fee to

Nasdaq for such listing.  Amex may also

be liable to Nasdaq for the payment of another $500K annual fee, in addition to

the $500K annual fee payable when QQQ becomes registered to trade on any market

in a Foreign region, for the right to trade QQQ internationally. Amex will be

required to pay this second $500K annual fee to Nasdaq, if, at the total annual

fee of $5 million for the right to trade QQQ 

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission. 

 

10

 

Domestically and in any market in a Foreign region, Nasdaq is still

able to certify that *****

 

Section 2.03.5  Payment

Procedures. 

Nasdaq will invoice Amex quarterly for any  fees that Amex owes Nasdaq for the right to list, trade or market

ETFs and QQQ in accordance with the procedures set forth in Article 13 herein.

 

Section 2.03.6  Reasonable

Arrangements for Listing QQQ Internationally and Provisions for the Payment of

Costs.  Amex

shall pay all fees and expenses necessary to obtain the right to list QQQ in

any Foreign region.  In addition, Amex

shall reimburse Nasdaq for all reasonable expenses incurred by Nasdaq in

connection with such listing, including, but not limited to, Nasdaq’s

reasonable outside legal and other professional fees related to the filing by

Nasdaq of all related applications and the obtaining by Nasdaq of all licenses,

permits, consents and approvals required by applicable Governmental Entities.

Nasdaq will use its best commercially reasonable efforts to facilitate the

Amex’s right to list QQQ in any Foreign region within a reasonable time

frame.  Amex will also be responsible

for the payment of any incremental fees or expenses, including reasonable

outside incremental legal and other professional fees, incurred by Nasdaq in

addition to the normal fees and related expenses required to obtain permission

to list QQQ in any Foreign region, if Nasdaq incurred such additional fees or

expenses due to Amex’s failure to provide reasonable advance notice to Nasdaq

of Amex’s intent to obtain the right to list QQQ in that region.  If Amex reimburses Nasdaq for such costs,

and then begins listing QQQ in such Foreign region, Amex will then have the

exclusive right  to list QQQ in

that Foreign region for a period of **** from the date that Amex reimbursed

Nasdaq for the costs that Nasdaq incurred in obtaining Amex’s right to list QQQ

in that region.  If, however, Amex

reimburses Nasdaq for such costs, and then refrains from listing or trading QQQ

in such Foreign region, Amex will then have the exclusive right  to list QQQ in that Foreign region for a

period of **** from the date that Amex reimbursed Nasdaq for the costs that

Nasdaq incurred in obtaining Amex’s right to list QQQ in that Foreign

region.  Upon the expiration of this

**** period, Nasdaq may then: (i) reimburse Amex for the fees and expenses paid

by Amex to obtain the right to list QQQ in that Foreign region; and (ii) begin

listing QQQ in that region.  If

Nasdaq  obtains the right to list QQQ in

such Foreign region subsequent to any exclusivity period for Amex, then the parties

will equally share the costs incurred by both parties for the right to list QQQ

in that Foreign region.

 

Section 2.04   Globe

Logo.  NASD

and Amex will assign all of their respective rights, interests, and all related

goodwill in the Globe logo, and any and all works based upon, derived from, or

incorporating the Globe logo, as well as all causes of actions, claims and

demands or other rights for, or arising from any infringement, including past

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

11

 

infringement, of the Globe logo (the Logo) to Nasdaq at no cost to Nasdaq.  A drawing of the Logo is attached hereto as

Exhibit F.  Nasdaq will have no

obligation to: (i) reimburse NASD and Amex for any costs that NASD and Amex  incurred in the development, use, and

assignment of this Logo; or  (ii)

continue to allow NASD and Amex to use the Logo once this assignment has become

effective. This assignment will become effective for public dissemination no

later than December 31, 2001 and is made with no representations or warranties

except that neither Amex nor NASD have 

previously granted any license to or ownership of the Logo to any other

entity.  Each of NASD and Amex will use

all commercially reasonable efforts to: (i) stop its current use of the Logo;

and (ii) prevent the continued or future use of the Logo in any of their

respective materials after the effective date of its assignment, provided, however, that each of NASD and

Amex individually agree that it will: (a) promptly notify Nasdaq of any current

use of the Globe Logo that it will be unable to discontinue as of the effective

date of this assignment; and (ii) undertake all commercially reasonable efforts

to cease such use of the Logo as soon as 

possible.  If: (i) Nasdaq becomes

aware of any continuing use of the Logo by NASD or Amex; and (ii) NASD or Amex

has failed to notify Nasdaq of such continuing use, then Nasdaq will notify

NASD or Amex of such use and provide NASD or Amex with a reasonable opportunity

to cure its infringing use of the Logo. The Parties further agree that all

disputes arising from NASD’s or Amex’s failure or inability to terminate its

use of the  Logo as of  the effective date of such assignment will

first be referred to the Parties’ Program Executives.

 

Section 2.05   Advertising.  Nasdaq

will include the American Stock Exchange corporate identity in all of Nasdaq’s

domestic internet, print and television advertising and collateral material for

QQQ beginning on January 1, 2002; the American Stock Exchange corporate

identity shall be featured prominently and all elements of the logotype should

be clearly legible and in conformance with the guidelines for reproduction of

the American Stock Exchange logo.  The

American Stock Exchange name will not appear in a manner that looks like, or is

similar to, the appearance of NASD-required disclosure language in the

advertisement, nor will the American Stock Exchange name be positioned in close

proximity to the NASD-required disclosure language.  In advance of finalization and publication, Nasdaq will review

with Amex all advertisements in the mediums itemized above (with “Greek Text”

or its substantive equivalent replacing any creative material that Nasdaq

reasonably determines is inappropriate to share with Amex) that will use the

Amex name, and will consult Amex on ideas or concerns that they may have about

alternate ways to display the Amex name. Nasdaq will continue to reference the

American Stock Exchange in its advertising for as long as Amex’s license to

trade QQQ remains in effect and Amex pays all licensing fees that are due in

accordance with the provisions of Section 2.03.4 herein.  Nasdaq further agrees that when referencing

an Amex-listed ETF in its domestic print advertising, domestic direct marketing

materials, or on its domestic websites it will indicate that the Amex is a

trading venue for the particular ETF; unless, however, Nasdaq reasonably  determines

in good-faith that such information is irrelevant.  Amex agrees that it will include a reference to Nasdaq, Nasdaq

100 or QQQ in all of Amex’s Family Index Share advertising.  In advance of finalization and publication,

Amex will review with Nasdaq all such Family Index Share Advertising (with

“Greek Text” or its substantive equivalent 

 

12

 

replacing any creative material that Amex reasonably determines is

inappropriate to share with Nasdaq) that will use the Nasdaq name, and will

consult Nasdaq on ideas or concerns that they may have about alternate ways to

display the Nasdaq name.

 

Section  2.06   Approvals.  Each Party agrees to  obtain and maintain all necessary licenses,

permits or government approvals as may be necessary for it to perform under

this Agreement. Each Party further agrees to cooperate with and assist the

other Parties in obtaining and maintaining any such approvals as applicable, to

the extent reasonably possible, if: (i) requested to do so by another Party in

writing and (ii) without limiting the requesting Party’s obligations under this

Agreement.

 

ARTICLE

3

 

Indemnification

 

Section 3.01   Indemnification.  Each Participant agrees to indemnify and

hold harmless the other Participants against all Losses that the other

Participants may incur by reason of the breach by such Participant of any term,

provision, covenant, warranty or representation contained herein, in connection

with the performance of such Participant’s obligations under this Agreement or

the Technology Transition Agreement and/or any claim, demand, or legal action

by a third party related to any of the foregoing.  No Participant shall have any obligation to defend, indemnify or

hold harmless any Indemnitee against claims, damages, Losses or expenses to the

extent arising from (i) the use of Intellectual Property, Hardware, Software or

Systems or information furnished to such Indemnitee in other than its intended

manner or (ii) changes to such Intellectual Property, Hardware, Software or

Systems or information by or on behalf of the Indemnitee by any entity other

than the Participant (including, but not limited to, changes in the operating

environment of such Hardware, Software, Systems or Information).  Each Participant further agrees to indemnify

and hold harmless the other Participants to this Agreement against any and all

claims, damages, Losses and expenses (including reasonable attorneys’ fees)

arising from or in connection with any claim, demand or legal action by a third

party, related directly to any Indemnitee’s permitted use of any Intellectual

Property, Hardware, Software or Systems or information furnished to such

Indemnitee by the Indemnifying Participant pursuant to the provisions of this

Agreement or the Technology Transition Agreement.

 

Section 3.02   Indemnification

Procedures.

 

Section 3.02.1  Notice.  If any Indemnitee receives notice of the

assertion of any Third-Party Claim with respect to which an Indemnifying

Participant is obligated under this Agreement to provide indemnification, such

Indemnitee shall give such Indemnifying Participant notice thereof (together

with a copy of such Third-Party Claim, process or other legal pleading)

promptly after becoming aware of such Third-Party Claim; provided, however, that the failure of any

Indemnitee to give notice as provided in this Section 3.02 shall not relieve

any Indemnifying Participant of its obligations under this Section 3.02, except

to the extent that such Indemnifying Participant is actually

 

13

 

prejudiced by such failure to give such notice.  Such notice shall describe such Third-Party

Claim in reasonable detail.

 

Section 3.02.2  Defense

of Claims.  An

Indemnifying Participant, at its  own

expense and through counsel chosen by it(which counsel shall be reasonably

acceptable to the Indemnitees), may elect to defend any Third-Party Claim.  If an Indemnifying Participant elects to

defend a Third-Party Claim, then, within ten (10) Business Days after receiving

notice of such Third-Party Claim (or sooner, if the nature of such Third Party

claim so requires), the Indemnifying Participant shall notify the Indemnitees

of its intent to do so, and the Indemnitees shall cooperate in the defense of

such Third-Party Claim.  The

Indemnifying Participant shall pay each Indemnitee’s reasonable out-of-pocket

expenses incurred in connection with such cooperation.  The Indemnifying Participant shall keep the

Indemnitees reasonably informed as to the status of the defense of such Third

Party Claim.  After notice from an

Indemnifying Participant to an Indemnitee of its election to assume the defense

of a Third-Party Claim, such Indemnifying Participant shall not be liable to

such Indemnitees under this Section 3.02 for any legal or other expenses

subsequently incurred by such Indemnitees in connection with the defense

thereof other than those expenses referred to in the preceding sentence; provided, however, that such Indemnitees

shall have the right to employ one law firm as counsel, together with a

separate local law firm in each applicable jurisdiction (Separate Counsel), to

represent such Indemnitees in any action or group of related actions (which

firm or firms shall be reasonably acceptable to the Indemnifying Participant)

if, in such Indemnitees’ reasonable judgment at any time, either a conflict of

interest between such Indemnitees and the Indemnifying Participant exists in

respect of such claim, or there may be defenses available to such Indemnitees

which are different from or in addition to those available to the Indemnifying

Participant and the representation of both parties by the same counsel would be

inappropriate, and in that event: (i) the reasonable fees and expenses of such

Separate Counsel shall be paid by the Indemnifying Participant (it being

understood, however, that the

Indemnifying Participant shall not be liable for the expenses of more than one

Separate Counsel (excluding local counsel) with respect to any Third-Party

Claim (even if against multiple Indemnitees)); and (ii) each of the

Indemnifying Participant and the Indemnitees shall have the right to conduct

its own defense in respect of such claim. 

If an Indemnifying Participant elects not to defend against a Third

Party Claim, or fails to notify an Indemnitee of its election as provided in

this Section 3.02 within the period of ten (10) Business Days described above,

the Indemnitees may defend, compromise, and settle such Third Party Claim and

shall be entitled to indemnification hereunder (to the extent permitted

hereunder), provided, however,

that no such Indemnitee may compromise or settle any such Third-Party Claim

without the prior written consent of the Indemnifying Participant, which

consent shall not be unreasonably withheld, conditioned, or delayed.  Notwithstanding the foregoing, the

Indemnifying Participant shall not, without the prior written consent of the

Indemnitees, (i) settle or compromise any Third-Party Claim or consent to the

entry of any judgment which does not include as an unconditional term thereof

the delivery by the claimant or plaintiff to the Indemnitees of a written

release from all liability in respect of such Third-Party Claim or (ii) settle

or compromise any Third-Party Claim in any manner that would be reasonably

likely to have a Material Adverse Effect on the Indemnitees.

 

14

 

Section 3.02.3  Third-Party

Claims. 

Except as otherwise noted in the Technology Transition Agreement, if any

Participant fails to defend jointly any such Third-Party Claim, the other

Participant or Participants shall solely defend such Third-Party Claim and the

Participant or Participants failing to defend jointly shall use all

commercially reasonable efforts to cooperate with the other Participant or

Participants in its or their defense of such Third Party Claim; provided, however, that no Participant may

compromise or settle any Third-Party Claim so as to affect any other

Participant without the prior written consent of the other appropriate

Participant or Participants, which consent shall not be unreasonably withheld,

conditioned, or delayed.  All costs and

expenses of any Participant in connection with, and during the course of, the

joint control of the defense of any such Third-Party Claim shall be initially

paid by the Participant that incurs such costs and expenses.  Such costs and expenses shall be reallocated

and reimbursed in accordance with the respective indemnification obligations of

the Participants at the conclusion of the defense of such Third-Party Claim.

 

Section 3.03   Certain

Limitations.

 

Section 3.03.1  Amount.  The amount of any indemnifiable Losses or

other liability for which indemnification is provided under this Agreement shall

be net of any amounts actually recovered by the Indemnitee from third parties

(including, without limitation, amounts actually recovered under insurance

policies) with respect to such indemnifiable losses or other liability.  Any Indemnifying Participant hereunder shall

be subrogated to the rights of the Indemnitee upon payment in full of the

amount of the relevant indemnifiable loss. 

An insurer who would otherwise be obligated to pay any claim shall not

be relieved of the responsibility with respect thereto or, solely by virtue of

the indemnification provision hereof, have any subrogation rights with respect

thereto.  If any Indemnitee recovers an

amount from a third party in respect of an indemnifiable loss for which

indemnification is provided in this Agreement after the full amount of such

indemnifiable loss has been paid by an Indemnifying Participant or after an

Indemnifying Participant has made a partial payment of such indemnifiable loss

and the amount received from the third party exceeds the remaining unpaid

balance of such indemnifiable loss, then the Indemnitee shall promptly remit to

the Indemnifying Participant the excess (if any) of (a) the sum of the amount

theretofore paid by such Indemnifying Participant in respect of such

indemnifiable loss plus the amount received from the third party in respect

thereof, less (b) the full amount of such indemnifiable loss or other

liability.

 

ARTICLE

4

 

Access

to Information

 

Section 4.01   Restrictions

on Disclosure of Information.

 

Section 4.01.1  Limitations

and Exceptions. 

Each of the Participants hereto (the Receiving Participant) agrees that it

shall not, and shall not permit any of its Affiliates or Representatives to,

disclose any Confidential Information of another Participant (the Disclosing Participant)

to any Person, other than to such Affiliates or

 

15

 

Representatives on a need-to-know basis in connection with the purpose

for which the Confidential Information was originally disclosed.

 

Section 4.02   Legally

Required Disclosure of Confidential Information.  If any of the Participants to this Agreement

or any of their respective Affiliates or Representatives asserts that it

intends to disclose Confidential Information that is required to be disclosed

by Law or applicable process, or is necessary or advisable to be disclosed in

order to comply with any applicable statute or governmental rule, regulation,

order, directive, policy or stock exchange rule or request, any financial or

accounting requirement or any governmental requests for additional information

or documents thereunder, such Disclosing Participant shall promptly notify the

Participant claiming to own the Confidential Information (the Owning Participant)

and shall use all commercially reasonable efforts to cooperate with the Owning

Participant so that the Owning Participant may seek a protective order or other

appropriate remedy and/or waive compliance with this Section 4.02.  All reasonable expenses incurred by the

Disclosing Participant in seeking a protective order or other remedy shall be

paid by the Participant that claims to own such information as such expenses

are incurred by the Disclosing Participant or upon written demand thereof.  If such protective order or other remedy is

not obtained, or if the Owning Participant waives compliance with this Section

4.02, the Disclosing Participant or its Affiliate or Representative, as

applicable, shall (a) disclose only that portion of the Confidential

Information which its legal counsel advises is required, necessary, or

advisable; (b) use all commercially reasonable efforts to obtain reliable

assurance as requested by the Owning Participant that confidential treatment

will be accorded such Confidential Information, and (c) promptly provide the

Owning Participant with a copy of the Confidential Information so disclosed, in

the same form and format so disclosed, together with a description of all

Persons to whom such Confidential Information was disclosed.

 

Section 4.03   Unauthorized

Acts.  Without

limiting the other Participant or Participants’ rights in respect of a breach

of this Article, the Participant receiving any Confidential Information will:

 

(1)                                  promptly

notify the Disclosing Participant of any unauthorized possession, use or knowledge,

or attempt thereof, of the Disclosing Participant’s Confidential Information by

any person or entity that may become known to Receiving Participant;

 

(2)                                  promptly

furnish to the Disclosing Participant full details of the unauthorized

possession, use or knowledge, or attempt thereof, and assist the Disclosing

Participant in investigating or preventing the recurrence of any unauthorized

possession, use or knowledge, or attempt thereof, of the Disclosing

Participant’s Confidential Information;

 

(3)                                  cooperate

with the Disclosing Participant (at the Disclosing Participant’s expense) in

any litigation and investigation against third parties deemed necessary by the

Disclosing Participant to protect its proprietary rights (such cooperation will

not require, nor shall be deemed to be, a violation of any legal privilege);

and

 

16

 

(4)                                  promptly

use its commercially reasonable efforts (acknowledging that its previous

efforts were inadequate) to prevent a recurrence of any such unauthorized

possession, use or knowledge, or attempt thereof, of Confidential Information.

 

Section 4.04   Return

of Confidential Information.  Each Participant agrees that all

Confidential Information, including any copies thereof, will be, at the

preference of the Owning Participant, either returned to the owner of such

Confidential Information or destroyed within ten (10) calendar days of the

completion or termination of this Agreement. 

Notes and other documents referencing or relating to Confidential

Information may be made and kept by the Participants, but will continue to be

governed by the provisions of this Agreement until they are destroyed.

 

Section 4.05   Standard of Care.  The Participants acknowledge the sensitive

and secret nature of the Confidential Information they will have access to and

agree that they will treat such Confidential Information as strictly

confidential and will exercise the same degree of care in the protection of the

Confidential Information as they each exercise with respect to their own

proprietary property and trade secrets, but in no event less than a reasonable

degree of care given the nature of the Confidential Information. Each  Participant 

warrants and represents that, except as otherwise permitted by this

Agreement, it has not disclosed  any

Confidential Information of the other Participants to this Agreement to any

third party.

 

Section 4.06  

Intellectual Property.  All Intellectual Property rights associated

with the Confidential Information, including without limitation, patent,

trademark, copyright, trade secret rights, and moral rights will remain in the

Owning Participant, unless otherwise specified in the Technology Transition

Agreement.

 

Section 4.07   Costs.  Each Participant will bear any cost it

incurs as a result of its compliance with this Article 4.

 

ARTICLE

5

 

Insurance

Matters

 

Section 5.01   Insurance.  During the term of this Agreement and during the period upon

which any obligations under the Technology Transition Agreement remain outstanding

and any additional period of time that assistance may be provided by the

Parties following the termination of the 

Technology Transition Agreement or this Agreement, each Party will

obtain, at its own expense, and keep in full force and effect professional

liability insurance covering the errors and omissions of the Party committed in

connection with the Technology Transition Agreement or this Agreement in an

amount not less than $*****. 

Each Party’s insurance will be written by one or more acceptable

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange Commission.

 

17

 

insurance companies that are licensed in the states where the Party

provides services to the other Parties under the terms of the Technology

Transition Agreement or this Agreement. 

Acceptable insurance companies must have a policy holder rating (“Best

Rating”) of at least an “A-” and be assigned a financial size category of at

least a Class VIII as rated in the most recent edition of “Best’s Key Rating

Guide.”

 

Section 5.02.   Insurance

Documentation. 

Each Party will furnish to the other Parties certificates of insurance

evidencing the coverage referenced in Section  5.01 herein prior to the

Effective Date. All certificates of insurance will include a provision whereby

a minimum of thirty (30) days prior written notice must be received by the

other Parties to this Agreement prior to coverage cancellation or material

alteration of the coverage by either the Party to this Agreement that has

purchased such coverage or the applicable insurer.

 

Section 5.03   Risk

of Loss.  Each Party will be responsible for

personal injury, and the risk of loss of, or damage to, its property, unless

such loss or damage was caused by the negligence or willful misconduct of

another Party or Parties to this Agreement. 

All Parties waive their rights of subrogation for personal injury and

property loss or damage against the other Parties.

 

ARTICLE

6

 

Term and

Termination

 

Section 6.01   Term.  The term of this Agreement will commence on

the Effective Date and expire on the date upon which all of the

Participants  have fulfilled all of

their obligations under the terms of this Agreement and any agreements attached

hereto as exhibits.

 

Section 6.02   Renewal.  The Participants may mutually

agree to extend the term of any provision of this Agreement.

 

Section 6.03   Financial Weakness.  Without limiting any provision of Law, if

any Party’s financial condition at any time does not, in the reasonable

judgment of any other Party, justify continuance of this Agreement on the terms

of payment set forth herein, the Party that is concerned will be entitled to

request that the Party about which it is concerned provide it with adequate

assurances of its ability to perform its obligations hereunder.  Any dispute between or among the Parties

under this Section shall be resolved under the dispute resolution procedures

set forth in Article 12 herein.

 

18

 

ARTICLE

7

 

Non-Indemnification

Tax Issues

 

Section 7.01   Generally.  The fees paid by the Parties for any Nasdaq

Technology furnished in their performance of this Agreement or the Technology

Transition Agreement will be inclusive of any applicable sales, use, gross

receipts, excise, or other taxes attributable to periods on or after the

Effective Date based upon or measured by the cost in providing such Nasdaq Technology.  No Party, however, will be responsible

for the payment of any tax assessed on the personal property or net income of

the other Parties.  To the extent that

any sales, use, gross receipts, excise, value-added or services tax is required

by Law to be separately identified in billings, the Party issuing the invoice

will separately identify such tax.

 

Section 7.02   Tax

Losses.   The Parties agree and acknowledge

that: (i) Nasdaq will be entitled to realize $***** of tax loss

carry forwards related to the assignment by Market Group of its interest in

Amex to New NASD Holding, Inc.; (ii) Nasdaq has paid the NASD $**** for

Nasdaq’s use of $**** of losses allocated by Amex to Market Group for the

period beginning **** and ending on ****; and (iii) the NASD is required to

repay Nasdaq the $**** in cash that Nasdaq paid to the NASD.  To the extent that any of the losses

described in clause (i) are (or become) unavailable for use by Nasdaq in the

year allocated to Market Group, the NASD shall compensate Nasdaq for the amount

of: (a) the losses that are or have become unavailable; and (b) any penalties,

interest or similar amounts assessed by any Governmental Entity in connection

with any assessment arising from or relating to the unavailability of such

losses by transferring an equivalent amount of cash to Nasdaq.

 

ARTICLE

8

 

Force

Majeure

 

No Participant will be liable for delay or failure in performance of

any of the acts required by this Agreement to the extent this delay or failure

arises from circumstances beyond its reasonable control (including, without

limitation, acts of God, fire, flood, war, explosion, sabotage, terrorism,

embargo, civil commotion, acts or omissions of any government entity, supplier

delays, communications or power failure, equipment or software malfunction, or

labor disputes). The Participants prevented from performing their obligations

under this Agreement by such force majeure event will be excused from such

performance for as long as such: (i) force majeure event continues; and (ii) such

Participants continue to use their commercially reasonable best efforts to

recommence performance of their obligations under this Agreement whenever and

to whatever extent possible without delay, including through the use of

alternate sources, workaround plans or other means. If the period of

non-performance exceeds thirty (30) calendar days, then the Participants to

whom the performance is due will each have the right to terminate the 

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

19

 

provisions of this Agreement affected by such non-performance as to the

Participants owing performance upon fifteen (15) calendar days prior written

notice.

 

ARTICLE

9

 

Ownership

 

Section 9.01   Documentation.  Each Party will own all reports, summaries,

or other documentation that another Party or Parties exclusively creates for it

during their performance of  this

Agreement.  The Parties may each, however, allow their agents or

subcontractors to retain copies of such documentation if such documentation is

required in order for such agents or subcontractors to discharge their duties

under the terms of this Agreement. The Parties will not be required to reveal

their own confidential or proprietary information during their performance of

this Agreement unless such information is a material component of the  Nasdaq Technology provided.  The Parties providing such documentation

agree to execute any documents and make such further assurances as are

reasonably necessary to confirm such ownership by the Party that is provided

with such documentation.

 

Section 9.02   Trademarks.  Except as otherwise set forth herein, each

Party will retain all right, title and interest in and to its trademarks and

service marks, registered or unregistered, (collectively, the Marks).  Any specific use by one Party of another

Party’s Marks will only occur after consultation with, and the written approval

of, the owner of the Marks.

 

ARTICLE

10

 

Audits

 

Each Party and the QQQ Trust will have the right to cause an

independent third party, during normal business hours, and with reasonable

advance notice, to review, copy and perform financial audits of the other

Parties’ business and financial records to verify any amounts previously

invoiced or reported.  In the event that

such audits reveal that amounts invoiced or reported differ by five percent

(5%)  or more from the correct amount

that should have been invoiced or reported, the Party having submitted

incorrect invoices or reports will reimburse the auditing Party or the QQQ

Trust (as applicable) for  the

reasonable cost of such review and audit and will refund  the amount of any overpayment or remit the

amount of any underpayment, if any. 

Each Party will, upon request, provide the other Parties and the QQQ

Trust with copies of any internal audit reports that the auditing entity produces,

or a third party retained by it produces, on any subject that is related to the

Parties’ performance of this Agreement, at no cost to the other Parties.

 

20

 

ARTICLE

11

 

Representations

and Warranties

 

Section 11.01   General

Representations and Warranties.  Each Participant hereby represents and

warrants to each of the other Participants that:

 

(a)                                  it

is duly organized,  validly existing and in good standing

under the Laws of the State where it is domiciled;

 

(b)                                 as

applicable, it has all requisite corporate, limited liability company, or other

power and authority to execute, deliver and perform its obligations under this

Agreement;

 

(c)                                  the

execution, delivery and performance of this Agreement  by the Participant: (i) has been duly authorized by the

Participant; and (ii) will not conflict with, result in a breach of or

constitute a default under any other agreement to which such Participant is a

party to or by which the Participant is bound;

 

(d)                                 it

is duly licensed, authorized or qualified to do business and is in good

standing in every jurisdiction in which a license, authorization or

qualification is required for the ownership or leasing of its Assets or the

transaction of business of the character transacted by it, except where the failure

to be so licensed, authorized or qualified would not have a material adverse

impact  on the Participant’s ability to

fulfill its obligations under this Agreement;

 

(e)                                  it

is, to the best of its knowledge, in compliance in all material respects with

all applicable Laws, the violation of which would have a material impact on its

or any other Participant’s ability to fulfill its obligations under this

Agreement, and has obtained all applicable permits and licenses required of  it in connection with its obligations under

this Agreement;

 

(f)                                    there

is no outstanding litigation, arbitrated matter or other dispute to which it is

a party which, if decided unfavorably to it, would reasonably be expected to

have a Material Adverse Effect on the other Participants’ ability to fulfill

their respective obligations under this Agreement;

 

(g)                                 it

has the right, free and clear of any liens or encumbrances to grant the rights

and deliver any  technology or services

to another Party and perform its obligations under this Agreement.  Further, it warrants and represents that

none of the   technology it provides to

any other Party will violate any patent, copyright, trade secret, trademark,

trade dress, or other intellectual property right of any third party.

 

(h)                                 it

will at all times exercise due care, prudence and diligence in carrying out its

duties and responsibilities under this Agreement.

 

Section 11.02   Specific

Warranties.  Old

Amex hereby represents and warrants that, as of the Effective Date hereof, its

Subsidiaries that existed as of the effective date of the Transaction Documents

have all been either dissolved or have become Subsidiaries

 

21

 

of Amex.  Nasdaq hereby  warrants and represents that it has the

right, through its wholly owned subsidiary Nasdaq FPS, to permit the listing,

trading and marketing of QQQ on an exchange in a manner that is consistent with

the fiduciary obligations of Nasdaq FPS to the beneficial owners of the QQQ

products.

 

ARTICLE

12

 

Dispute

Resolution

 

Section 12.01   Dispute

Resolution.  Any and all disputes, controversies or

claims arising out of, relating to, or in connection with, this Agreement,

including any question regarding its existence, validity, breach, scope or

termination, including, but not limited to, any  claims arising in tort (Dispute), but specifically excluding any

Third-Party Claim for which the Participants may be obligated to indemnify each

other pursuant to Article 3 hereof, will be settled in accordance with the

procedures set forth in this Article 12. 

The Participants will first try to settle any Dispute among

themselves.  The Participants will start

this process by referring any Dispute to their Program Executives  (as hereinafter defined).  The Participants’ Program Executives will

meet within five (5) Business Days  of

the receipt by a Participant of written notification  of the existence of such Dispute.  If the Program Executives fail to timely meet or are unable to

resolve the Dispute after having made a good faith effort to do so, or if more

than five (5) days have elapsed after the Program Executives’ initial meeting

to discuss such Dispute, then on the request of any Participant: (i) if the

Dispute involves the Parties’ performance under the Technology Transition Agreement

it will be referred to the Special Technology Consultant pursuant to the

provisions of Section 12.03 herein; or (ii) if any Party to a Dispute involving

the Parties’ performance under the Technology Transition Agreement shall

determine in its good faith business judgment, that the Dispute has a “special

and significant economic impact,” the Dispute shall be referred immediately to

“fast track” binding arbitration pursuant to the provisions of Section 12.04

herein. All other Disputes among the Participants shall, on the request of any

Participant, be referred first to non-binding mediation pursuant to the

provisions of Section 12.02 herein. 

Except as to any dispute concerning a Third-Party Claim which has been

brought against one or more of the Participants in a court of competent

jurisdiction and which is subject to indemnification under Article 3 herein,

the Participants agree that the dispute resolution procedures set forth in this

Article 12 will be the exclusive method of resolving any Dispute.

 

Section

12.02   Non-Binding Mediation.  Except

as set forth in Section 12.01 herein, the Participants will submit all Disputes

to non-binding mediation.  The

Participants involved, however,

shall have the right to submit any Dispute that has been identified as one that

the Participants want to resolve in an expedited manner directly to

“fast-track” binding arbitration without first attempting to mediate such

Dispute.  The Participants will start

the mediation process by filing a Request for Mediation with the American

Arbitration Association (AAA).

The Request for Mediation must include a brief description of the nature of the

Dispute. The appropriate administrative fee must also be submitted to AAA with

the Request for Mediation.  AAA will

then select a mediator that has experience in the subject matter of the Dispute

from its roster of

 

22

 

available mediators within ten (10) days and will provide a provide a

biographical sketch of the mediator to the Participants.  If the mediator is not reasonably acceptable

to all Participants involved in such Dispute, any  Participant involved in the Dispute may request that the AAA

replace the mediator with another mediator from the AAA’s roster.  The mediator will then meet with the

Participants to resolve the Dispute on the first mutually available date. The

mediation will be conducted in accordance with the Commercial Mediation Rules

of the AAA.  The Participants may agree

in writing upon a time limit for the resolution of the Dispute through

mediation, but absent such agreement the mediation shall continue for no more

than thirty (30) days from the appointment of the mediator.  If the Participants reach an agreement

through mediation, they will put the terms of their agreement in writing and

execute and exchange releases of claims. 

If: (i) the mediator is unable to resolve the Dispute within the time

limit agreed upon in writing by the Participants;  or (ii) any Participant to the mediation is dissatisfied with the

results of such mediation, then any Participant to the Dispute may demand that

the Dispute  be referred to “fast track”

binding arbitration pursuant to the procedures set forth in Section 12.04

herein. The Participants will share equally in the cost of any mediation

initiated pursuant to this Section 12.02.

 

Section 12.03   Special

Technology Consultant.  The Parties will

mutually agree upon a special technology consultant (Special Technology Consultant) who has significant

personal experience and knowledge of the securities industry and the technical

systems that are used by companies in such industry. Any individual selected by

the Parties to act as the Special Technology Consultant will immediately

disclose any conflict of interest that could have an impact upon his judgment

in fulfilling his responsibilities as the Special Technology Consultant.  Each Party agrees that it will not retain

the individual that is serving as the Special Technology Consultant to perform

other services, while serving as the Special Technology Consultant, without the

prior written approval of the other Parties. 

The Special  Technology

Consultant will be solely responsible for: (i) monitoring the Parties’

performance under the Technology Transition Agreement; and (ii) resolving all

Disputes, by the informal or formal procedures set forth in this Section 12.03,

relating to the provision of Nasdaq Technology, except those Disputes that have

been identified, in its good faith business judgment, by a Party to this

Agreement as having a “special and significant economic impact.”

 

Section 12.03.1  Procedures.  The

Special Technology Consultant may informally resolve any issue or Dispute

relating to Nasdaq Technology with the concurrence of the Parties. The Special

Technology Consultant may also formally resolve any  Dispute relating to Nasdaq Technology by conducting an

arbitration in accordance with such rules as the Special Technology Consultant

determines to be applicable.  The

arbitration of a technology-related Dispute will be commenced by the

simultaneous submission of a statement of claim to the Special Technology

Consultant and the opposing Party or Parties at the addresses specified in

Section 14.03 herein.  The opposing

Party or Parties will then have such period of time as the Special Technology

Consultant permits to submit a statement of defense. Within five (5) days of

receiving the submission of a statement of claim, any of the opposing Parties

may serve a notice on the Special Technology Consultant and the other Parties

that it considers the Dispute to have

 

23

 

a “special and significant economic impact,” in which case the Dispute

shall be resolved under Section 12.04 below. If a Party fails to file a

statement of defense within the time limit set forth by the Special Technology

Consultant, the Special Technology Consultant may proceed with the arbitration.

 

Section

12.03.2  Powers.  Unless the Parties at any time agree

otherwise, the Special Technology Consultant shall have the power upon the

application of any Party or his or her own motion, but in either case only

after giving the Parties a reasonable opportunity to state their views, to: (i)

take whatever interim or final measures he or she deems necessary, including

temporary or permanent injunctive relief and measures for the preservation,

protection, conservation, disposal or termination, of any property, license, or

things under the control of any Party including the payment and apportionment

of damages; (ii) order any Party to produce to the Special Technology

Consultant and to the other Parties for inspection, and to supply copies of,

any documents or classes of documents in their possession, custody or power

which the Special Technology Consultant deems to be relevant; (iii) conduct

evidentiary hearings; (iv) conduct any other such inquiries as may, to the

Special Technology Consultant, be necessary or expedient; or (v) extend or

abbreviate any time limits provided in this section or otherwise agreed upon by

the Parties  Any measure, order, or

award made by the Special Technology Consultant shall adhere to the terms of

this Agreement and the substantive Law of the State of New York. The Special

Technology Consultant may award damages in any amount that the Special Technology

Consultant determines to be reasonable, including up to three (3) times the

amount of damages actually incurred by the Parties that were adversely impacted

by another Party’s failure to act in good faith.  The arbitration conducted by the Special Technology Consultant

shall be final, conclusive and binding upon the Parties, their successors and

assigns. Any arbitration award shall be enforceable against a Party and

judgment may be entered thereon in any court of competent jurisdiction. If the

Dispute has been designated as having a “special and significant economic

impact” and the Special Technology Consultant determines that any Party’s delay

in the implementation of the provisions of the Technology Transition Agreement

is reasonable or unreasonable, he or she may so opine on the Party’s acts or

omissions in dispute and inform the arbitrators that are attempting to resolve

any Dispute arising from or related to such delay of his or her opinion.  This notification will set forth the Special

Technology Consultant’s justification for determining that such delay was

reasonable or unreasonable.

 

Section

12.03.3  Replacement of Special

Technology Consultant. 

The initial Special Technology Consultant shall be *****.  The Special Technology Consultant may resign

at any time by so notifying the Parties in writing, such resignation to be

effective upon appointment of a successor Special Technology Consultant.  The

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

24

 

Parties may also remove the Special Technology Consultant at any time

by so notifying the Special Technology Consultant in a writing signed by all

Parties and may appoint a successor by unanimous written consent.  If the Special Technology Consultant resigns

or is removed, or if a vacancy exists for any reason, the Parties will promptly

agree upon the successor Special Technology Consultant, but failing such

agreement by the Parties, the successor shall be designated by the  AAA upon the request of any Party to this

Agreement.  Any Special Technology

Consultant appointed by the AAA shall have significant personal experience and

knowledge of the securities industry and the technical systems that are used by

companies in such industry.

 

Section 12.04   Arbitration

Procedures.  Except as provided in Section 12.03, and except for any Third

Party Claim brought in a court of competent jurisdiction by a Third Party for

which the Participants may be obligated to indemnify each other pursuant to

Article 3 herein, any Dispute not resolved in accordance with Sections 12.01

and 12.02, shall be finally settled by arbitration in accordance with this

Section 12.04.   Any arbitration

shall be (i) final, conclusive and binding upon the Participants, their

successors and assigns, (ii) conducted in New York, New York by three (3)

impartial arbitrators acting by majority vote in accordance with the Commercial

Arbitration Rules of the AAA (Rules); and (iii) any measure taken, order, or award

issued therein shall adhere to the terms of this Agreement and the substantive

Law of the State of  New York. If the

Participants are unable to resolve any Dispute (other than a Dispute concerning

a Third-Party Claim) through the procedures set forth in Section 12.01, 12.02

or 12.03 herein, a Participant hereto may commence proceedings hereunder by

delivering a written notice from its Program Executive or such Executive’s

designee (the Demand) to the other Participants

providing a reasonable description of the Dispute. The Participant initiating

the arbitration will forward two (2) copies of the Demand and this Article 12

to the AAA together with the appropriate filing fee. The AAA will promptly send

the Participants a list of suitable arbitrators, who have been admitted to

practice for at least fifteen (15) years and who are experienced in the

arbitration of large, complex commercial disputes, that the AAA has chosen from

its National Panel of Commercial Arbitrators upon its receipt of the

Demand.  The Participants will then

select two (2) impartial arbitrators that are reasonably acceptable to them

from the list provided to them by the AAA within five (5) days of their receipt

of such list.  The two arbitrators

selected by the Participants will then select a third arbitrator from the AAA’s

roster that will serve as the chairperson of the arbitration panel (Panel) within five

(5) days of their having been selected by the Participants.  If the Participants are unable to agree upon

the selection of  arbitrators within

such five (5) day period, they will so notify the AAA and the AAA will then

promptly select two (2) arbitrators from its National Panel of Commercial Arbitrators.  The two (2) arbitrators selected by the AAA

will then appoint the third arbitrator from the AAA’s National Panel of

Commercial Arbitrators. The third arbitrator will serve as the chairperson of

the Panel.  If an arbitrator so selected

becomes unable to serve, his or her successors shall be similarly selected or

appointed.  Each Participant shall

provide to the other Participants to the Dispute, reasonably in advance of any

hearing, copies of all documents which a Participant intends to present in such

hearing and each Participant shall be allowed to conduct reasonable discovery

through written requests for information, document requests, requests for

stipulation of fact and

 

25

 

depositions. The nature and extent of such discovery shall be

determined by the Participants; provided

that, if the Participants cannot agree on the terms of such

discovery, the nature and extent thereof shall be determined by the Panel which

shall take into account the needs of the Participants and the desirability of

making discovery expeditious and cost effective.  The Participants further acknowledge and agree that discovery

relating to any Dispute that has been submitted for “fast track” arbitration

must be completed and the presentation of the Dispute to the Panel must

commence no later than thirty (30) days after the appointment of the Panel

unless such time period has been extended by the mutual agreement of all of the

Participants to this Agreement.  The

Participants further agree that the Panel must issue its decision on any

Dispute that has been submitted for “fast track” arbitration within sixty (60)

days of the appointment of the Panel 

unless all of the Participants to this Agreement agree in writing to

extend such deadline for good cause shown. 

Any award by the Panel must be in writing and shall specify the factual

and legal basis for the award.  The

Participants hereby agree that monetary damages may be inadequate and in

addition to the award of damages the arbitrators may provide whatever interim

or final measures they deem necessary, including permanent injunctive relief,

which may encompass an award of specific performance, and/or other measures for

the preservation, protection, conservation or disposal or termination of any

property, license or things under the control of any Party, including the

payment and apportionment of damages. 

The arbitrators may  award

damages in any amount that they determine to be  reasonable.  The

arbitrators may also award damages up to three (3) times the amount of damages

actually incurred by any Party that was adversely impacted by another Party’s

failure to act in good faith.  The Panel

shall apportion all costs and expenses of arbitration, including the Panel’s

fees and expenses and fees and expenses of experts, between the prevailing and

non-prevailing Participants as the Panel in its sole discretion deems fair and

reasonable.  Any arbitration award shall

be binding and enforceable against the Participants hereto and judgment may be

entered thereon in any court of competent jurisdiction.

 

Section 12.05   Damages.  Except as with respect to the provisions set

forth in:  Sections 12.03.2 and 12.04

herein that allow the award of up to three times the amount of damages actually

incurred due to a Party’s failure act in good faith, in no event may the Panel

or the Special Technology Consultant award consequential, special, exemplary or

punitive damages. The Panel or the Special Technology Consultant may, however, award consequential damages

against any Participant that violates the provisions of Article 4 herein

relating to the protection of Confidential Information.

 

Section 12.06   Continuity

of Services. 

Each Party acknowledges that the timely and complete performance of its

respective obligations pursuant to this Agreement is critical to the business

and operations of the other Parties. 

Accordingly, in the event of a Dispute between any of the Parties, that

arises from or is related to the Parties’ performance of this Agreement, the

Parties agree that, absent the award of interim relief by the Special

Technology Consultant under Section 12.03.2 or the arbitration Panel under

Section 12.04 herein, during the resolution of the Dispute:  (i) they will not interrupt the provision of

any technology or services; and (ii) all of the Parties  will continue to so perform their other

respective obligations under this Agreement in good faith.

 

26

 

ARTICLE

13

 

Financial

Procedures

 

Section 13.01   Payment

Procedures.  Amex

will provide Nasdaq with monthly reports *****.  Nasdaq will review these reports and then

invoice Amex  quarterly for fees due

from Amex for its right to list, trade and market QQQ and ETFs pursuant to the

provisions of Article 2 herein.  Any

additional costs or expenses incurred by the Parties in fulfilling their

obligations under this Agreement may be allocated among the Parties as they may

mutually agree upon.  The format of all

reports and invoices will be mutually agreed upon by the Parties.  Each Party will:  (i) review each report or invoice upon its receipt of such

document  in order to verify that it

contains the correct information and is in the format agreed upon by the

Parties; and (ii) pay all invoices not then in dispute within thirty (30) days

of its receipt of such invoice. If any Party 

disputes the amount of any invoice or the accuracy of any report, it

will notify the Party that sent such document of its disagreement within five

(5) Business Days of its receipt of such document.  The Parties’ Program Executives will then meet in an attempt to

resolve such discrepancies.  If the

Parties’ Program Executives are unable to resolve any such disagreement within

five (5) Business Days of being notified of the Dispute, then the Party that

received the document will pay all amounts not then in dispute. The Parties

will then resolve any remaining disagreements through the procedures set forth

in Article 12 herein. None of the Parties will have a right of set-off for

amounts due or alleged to be due under the terms of this Agreement.  All invoices may be paid by electronic funds

transfer.

 

Section 13.02   Overdue

Invoices. 

Each Party may charge the other Parties Interest on any undisputed

invoices that the other Parties failed to pay within forty-five (45) days of

their receipt of such invoice. This Interest may be assessed monthly.

 

ARTICLE

14

 

Miscellaneous

 

Section 14.01   Entire Agreement.  This Agreement and the exhibits to this

Agreement, the  Technology Transition

Agreement, the drawing of the Globe logo, and the License Agreement constitute

the entire agreement among the Participants with respect to the subject matter

hereof and supersede all prior written and oral and all contemporaneous written

and oral agreements and understandings with respect to the subject matter

hereof.

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange Commission.

 

27

 

Section 14.02   Governing Law.  This Agreement shall be governed by and construed in accordance

with the laws of the State of New York regardless of the laws that might

otherwise govern under principles of conflicts of laws applicable thereto.

 

Section 14.03   Notices.  All notices and other communications

hereunder shall be in writing and shall be deemed to have been duly given when

delivered in person, by express or overnight mail delivered by a nationally

recognized air courier (with delivery charges prepaid and a signed receipt

confirming delivery is obtainable)  or

by  certified mail (postage prepaid,

return receipt requested) to the respective Participants or their successors or

designees as follows:

 

(a)           if

to Amex:

 

American Stock Exchange, LLC

86 Trinity Place

New York, New York 10006

Attn:  *****

- Senior Vice President

 

With, in

the case of notice of breach or default, a required copy to:

American

Stock Exchange, LLC

86

Trinity Place

New

York, New York 10006

Attn:  **** - Associate General Counsel

 

(b)           if

to NASD:

 

National Association of Securities Dealers, Inc.

1735 K Street, N.W.

Washington, D.C. 20006

Attn:  **** -

Chief Administrative Officer

 

With, in

the case of notice of breach or default, a required copy to:

National

Association of Securities Dealers, Inc.

1735 K

Street, N.W.

Washington,

D.C.  20006

Attn:  Office of General Counsel - Contracts Group

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

28

 

(c)           If

to Nasdaq:

 

The Nasdaq Stock Market, Inc.

One Liberty Plaza

165 Broadway

New York, New York 10006

Attn:  *****-

President

 

With, in

the case of notice of breach or default, a required copy to:

The

Nasdaq Stock Market, Inc.

1735 K

Street, N.W.

Washington,

D.C. 20006

Attn:  Office of General Counsel - Contracts Group

 

(d)           If

to Old Amex:

 

American Stock Exchange, Inc.

86 Trinity Place

New York, New York 10006

Attn:  **** -

Corporate Secretary

 

With, in

the case of notice of breach or default, a required copy to:

American

Stock Exchange, Inc.

86

Trinity Place

New

York, New York 10006

Attn:  **** - Associate General Counsel

 

(e)           If

to Nasdaq FPS:

 

Nasdaq Financial Products Services, Inc.

1735 K Street, N.W.

Washington, DC 20006

Attn:  ****

 

With, in

the case of notice of breach or default, a required copy to:

The

Nasdaq Stock Market, Inc.

1735 K

Street, N.W.

Washington,

D.C. 20006

Attn:  Office of General Counsel - Contracts Group

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange Commission.

 

29

 

or to such other address as the Participant to whom notice is given may

have previously furnished to the others in writing in the manner set forth

above.  Any notice or communication

delivered in person shall be deemed effective on delivery.  Any notice or communication sent by air

courier shall be deemed effective on the first business day at the place at

which such notice or communication is actually received following the day on

which such notice or communication was sent.

 

Section 14.04   Program

Executives. 

Each Participant will also appoint a senior  manager (Program Executive) who will serve as the primary

representative of that Participant under this Agreement.  Each Participant may, in its sole discretion,

change its Program Executive at any time upon notice to the other

Participants.  Each Program Executive

will: (i) have overall responsibility for managing and coordinating the

daily performance of his or her Participant’s obligations under this Agreement;

and (ii) be authorized to act for and on behalf of his or her Participant

with respect to all matters relating to this Agreement including any amendment

thereof.  Notwithstanding the foregoing,

a Program Executive may, upon notice to the other Participants, delegate such

of his or her responsibilities to such other employees of his or her

Participant as the Program Executive deems appropriate.

 

Section 14.05   Parties

in Interest. 

This Agreement shall be binding upon and inure solely to the benefit of

each Participant hereto, and nothing in this Agreement, express or implied, is

intended to confer upon any other Person any rights or remedies of any nature

whatsoever under or by reason of this Agreement, except for Article 3 (which is

intended to be for the benefit of the Persons provided for therein and may be

enforced by such Persons).

 

Section 14.06   Counterparts.  This Agreement may be executed in one or

more counterparts, each of which shall be deemed to be an original but all of

which shall constitute one and the same agreement.

 

Section 14.07   Binding

Effect. 

This Agreement shall inure to the benefit of and be binding upon the

Participants hereto and their respective legal representatives and successors

or assigns.  The Exhibits attached hereto

are an integral part of this Agreement and are incorporated into this Agreement

and made a part hereof.

 

Section 14.08   Assignment.  No Participant may assign this Agreement or

its rights or obligations hereunder without the prior written consent of the

other Participants, which consent will not be unreasonably withheld,

conditioned or delayed, provided, however, that any Participant

may assign this Agreement to a corporation controlling, controlled by or under

common Control with the assigning Participant without releasing the assignor

from its obligations under this Agreement. The consent of a Participant to any

assignment of this Agreement will not constitute such Participant’s consent to

further assignment.  This Agreement will

be binding on the Participants and their respective successors and permitted

assigns.  Any assignment in

contravention of this subsection will be void.

 

30

 

Section 14.09   Change

of Control. 

At least ninety (90) days prior to the effective date thereof or such

fewer number of days as is reasonably practicable, Amex will notify NASD and

Nasdaq of any: (i) sale of substantially all of the Assets of Amex, (ii)

Person, other than NASD, acquiring more than fifty percent (50%) of the voting

securities of Amex, (iii) merger involving Amex; or (iv) substantially similar

transaction.

 

Section 14.10   Independent

Contractor.  Each Party  and its

Representatives, in performing this Agreement, are acting as independent

contractors and not as employees or agents of the other Parties. Each Party

will provide all insurance coverage required by applicable laws, regulations,

or employment agreements, including, without limitation, medical and worker’s

compensation. Each Party further represents and warrants that none of the other

Parties nor any individual employed by or associated with such Party shall be

considered an employee of the other Parties to this Agreement for any purpose

whatsoever.  Each Party will be

responsible for payment of all unemployment, social security, and other payroll

taxes and all benefits of all of its individuals who are engaged in the

performance of this Agreement.  If, at

any time, any liability is asserted against any Party for unemployment, social

security or any other payroll tax related to another Party or any individuals

or subcontractors employed by or associated with another Party, then such Party

will indemnify and hold harmless the Party that liability is asserted against

from any such liability, including, without limitation, any such taxes, any

interest or penalties related thereto, and reasonable attorney’s fees and

costs.

 

Section 14.11   Severability.  If any term or other provision of this

Agreement is invalid, illegal or incapable of being enforced by any rule of law

or public policy, all other conditions and provisions of this Agreement shall

nevertheless remain in full force and effect so long as the economic or legal

substance of the transactions contemplated hereby is not affected in any manner

materially adverse to any Participant. 

Upon such determination that any term or other provision is invalid,

illegal or incapable of being enforced, the Participants hereto shall negotiate

in good faith to modify this Agreement so as to effect the original intent of

the Participants as closely as possible in an acceptable manner to the end that

transactions contemplated hereby are fulfilled to the fullest extent possible.

 

Section 14.12   Survival Of Provisions.  The terms of this Agreement

apply to those rights that survive any cancellation, termination, or

rescission, namely—Release of Claims (Section 1.06), Access to Information

(Article 4), Ownership (Article 9), and any warranties. Payment obligations of

one Party to the other arising prior to the cancellation, termination or

recession of this Agreement will survive the expiration of termination of this

Agreement.

 

Section 14.13   Failure

or Indulgence Not Waiver; Remedies Cumulative.  No failure or delay on the part of any

Participant hereto in the exercise of any right hereunder shall impair such

right or be construed to be a waiver of, or acquiescence in, any breach of any

representation, warranty or agreement herein, nor shall any single or partial

exercise of any such right preclude other or further exercise thereof or of any

other right. All rights and remedies existing under this Agreement are

cumulative to, and not exclusive of, any rights or remedies otherwise

available.

 

31

 

Section 14.14   Amendment.  No change or amendment will be made to this

Agreement or with respect to specific provisions of this Agreement except by an

instrument in writing signed by each of the Participants affected by such

change or amendment.

 

Section 14.15   Covenant

of Further Assurances.  The Participants covenant

and agree that, subsequent to the execution and delivery of this Agreement and,

without any additional consideration, each Participant will execute and deliver

any further legal instruments and perform any acts that are or may become

necessary to effectuate the purposes of this Agreement.

 

Section 14.16   Export.  Each Party agrees that it will comply with

all applicable export laws and regulations of the United States. Each Party

will cooperate with the other Parties in connection the requirements of this

Article 14, including promptly furnishing any end-user certificates, affidavits

regarding re-export or other applicable certificates or documents.

 

Section 14.17   Publicity.  Except as otherwise set forth in this

Agreement, each Participant will: (i) submit to the other Participants all

advertising, written sales promotions, press releases and other publicity

matters in which the other Participants’ names or Mark(s) is/are mentioned or

which contains language from which the connection of said name or Marks may be

inferred or implied (in each instance, including the Marks), and (ii) not

publish or use such advertising, sales promotions, press releases or publicity

matters without the other Participants’ prior written consent.

 

Section 14.18   Authorization.  This Agreement will not be binding upon

the Participants unless executed by an authorized officer of each

Participant.  Amex, Nasdaq and NASD, Old

Amex and the Nasdaq FPS and the persons executing this Agreement represent that

each such persons are duly authorized by all necessary and appropriate

corporate or other action to execute this Agreement on behalf of their

respective Participants.

 

IN

WITNESS WHEREOF, each of the Participants has caused this

Agreement to be executed on its behalf by its officers thereunto duly

authorized on the day and year first above written.

 

	

  American Stock Exchange, LLC

  (Amex)

  	

   

  	

  National Association of

  Securities

  Dealers, Inc. (NASD)

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Salvatore F. Sodano

  	

   

  	

  By:

  	

  /s/ Robert R. Glauber

  	

   

  
	

   

  	

   

  	

   

  
	

  Name: Salvatore F. Sodano

  	

   

  	

  Name: Robert R. Glauber

  
	

   

  	

   

  	

   

  
	

  Title: 

  Chairman and CEO

  	

   

  	

  Title: Chairman and Chief Executive

  Officer

  
						

 

32

 

	

  The Nasdaq Stock Market, Inc. (Nasdaq)

  	

   

  	

  Nasdaq Financial Products Services, Inc. (Nasdaq FPS)

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Richard G. Ketchum

  	

   

  	

  By:

  	

  /s/ John L. Jacobs

  	

   

  
	

   

  	

   

  	

   

  
	

  Name: Richard G. Ketchum

  	

   

  	

  Name: John L. Jacobs

  
	

   

  	

   

  	

   

  
	

  Title: President

  	

   

  	

  Title:  Chief

  Executive Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  American Stock Exchange

  Membership Corporation (Old Amex)

  	

   

  	

  American Stock Exchange

  Membership Corporation (Old Amex)

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Anthony J. Boglioli

  	

   

  	

  By:

  	

  /s/ Robert M. Gordon

  	

   

  
	

   

  	

   

  	

   

  
	

  Name: Anthony J. Boglioli

  	

   

  	

  Name: Robert M. Gordon

  
	

   

  	

   

  	

   

  
	

  Title: 

  Director

  	

   

  	

  Title: 

  Director

  
	

   

  	

   

  	

   

  
	

  American Stock Exchange

  Membership Corporation (Old Amex)

  	

   

  	

  American Stock Exchange

  Membership Corporation (Old Amex)

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Edwin S. Crooks

  	

   

  	

  By:

  	

  /s/ John T. McGowan

  	

   

  
	

   

  	

   

  	

   

  
	

  Name: Edwin S. Crooks

  	

   

  	

  Name: John T. McGowan

  
	

   

  	

   

  	

   

  
	

  Title: 

  Chairman

  	

   

  	

  Title: 

  Director

  
									

 

33Exhibit

10.3

 

TECHNOLOGY TRANSITION

AGREEMENT

 

THIS AGREEMENT

(the “Agreement”), dated as of the 6th day of February, 2002 (the “Agreement

Date”), is entered into by and among (i) The Nasdaq Stock Market, Inc.

(“Nasdaq”) a Delaware corporation, (ii) the National Association of Securities

Dealers, Inc., (“NASD”), a Delaware corporation, and (iii) The American Stock

Exchange LLC (“Amex”), a Delaware limited liability company (Nasdaq, Amex and

NASD are collectively referred to herein as the “Parties”). This Agreement

constitutes Exhibit C to the Master Agreement of the same date among the

National Association of Securities Dealers, Inc., The Nasdaq Stock Market,

Inc., the American Stock Exchange, Inc., Nasdaq Financial Products Services,

Inc. and the American Stock Exchange, LLC (the “Master Agreement”).  Unless otherwise defined herein, all

capitalized terms used herein shall have the meanings set forth in Article 1 of

the Master Agreement and Section 15 of this Agreement.

 

WHEREAS, in 1998,

pursuant to the Transaction Documents, among other things, (i) Amex acquired

substantially all the assets of and assumed the liabilities of Old Amex in

consideration for a Class A membership interest in Amex, and (ii) the NASD and

NASD Market Holding Company (later known as the Nasdaq-Amex Market Group, Inc.

(“Market Group”)) made commitments to Amex, including, without limitation,

subject to certain conditions, that specific technology and related services

would be provided to Amex;

 

WHEREAS, the NASD

and Nasdaq, formerly a wholly-owned Subsidiary of the NASD, have taken

corporate actions to restructure and recapitalize Nasdaq through:  (i) a two phase private placement with the

first phase closing on June 28, 2000 and the second phase closing on January

18, 2001; and (ii) the sale and issuance of $240 million convertible

subordinated debentures of Nasdaq to Hellman & Friedman Capital Partners

IV, L.P. and certain of its affiliated limited partnerships, the proceeds from

which were used to repurchase shares of Nasdaq common stock owned by the NASD;

and Nasdaq is no longer a wholly-owned Subsidiary of the NASD;

 

WHEREAS, NASD,

Nasdaq and Amex now intend to provide for certain transfers of technology and

enter into business arrangements; and

 

WHEREAS, the

Parties wish to govern their ongoing relationships as of the Effective Date and

the Agreement Date by the terms of this Agreement;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and

sufficiency of which are hereby acknowledged, the Parties intend to be legally bound

and hereby agree as follows:

 

SECTION

1.                PROJECT SCOPE - OVERVIEW

 

1.1           Nasdaq

Technology.  Nasdaq shall

provide software, hardware, data, information, and/or services as set forth

herein (the “Nasdaq Technology”) to Amex (collectively, the “Transition”).

 

 

a.  MDS SYSTEM. 

Nasdaq shall provide Amex with services, as set forth

herein, related to Nasdaq’s MDS System, and permit Amex to have access to the

MDS System data and MDS System code, as set forth herein.

 

i.              MDS SYSTEM DATA.  From the Agreement Date until the Critical

Milestone Date for the MDS System, Nasdaq shall continue, as it has prior to

the Agreement Date, to operate the MDS System so that Nasdaq makes available to

Amex the Amex data that Nasdaq receives on behalf of Amex from the Securities

Industry Automation Corporation (“SIAC”) into the MDS System (“Amex MDS Data”)

and Nasdaq hereby assigns to Amex all right, title and interest in and to the

Amex MDS Data.  As part of the

Transition, the Parties shall agree to a plan that permits the transfer, by the

Critical Milestone Date for the MDS System, to Amex of the Amex MDS Data

received by Nasdaq prior to the Agreement Date.  Neither Nasdaq nor Amex shall have any rights in the other’s data

from the MDS System and Nasdaq shall delete the Amex MDS Data from the MDS

System after the Critical Milestone Date for the MDS System.  Except as otherwise set forth herein, after

the Critical Milestone Date for the MDS System, Amex shall commence the

operation of its own database not on Nasdaq’s premises as a substitute for the

MDS System and Nasdaq shall have no further obligation to provide Amex MDS Data

to Amex from the MDS System.

 

ii.            REGULATORY ENHANCEMENTS.

 

General.  From the Agreement Date to the Critical

Milestone Date for the MDS System, Amex may request that Nasdaq develop

modifications or enhancements to the MDS System that provides the Amex MDS Data

that Amex needs for the regulation of the Amex market (“MDS

Enhancements”).  Nasdaq will provide

Amex with a reasonable estimated schedule for the implementation of the MDS

Enhancements.  If Amex accepts the

schedule, Nasdaq shall develop such MDS Enhancements. Nasdaq will have no

obligation to provide to Amex modifications or enhancements that Amex does not

need for the regulation of the Amex market. Disputes regarding whether a

proposed enhancement is needed for the regulation of the Amex market shall be

resolved as specified in Section 12.

 

Cost.  If Nasdaq chooses to implement an MDS

Enhancement on behalf of both itself and Amex, Amex shall pay Nasdaq Amex’s

Share (as defined below) of the Fully-Loaded Cost associated with the MDS

Enhancement.  If the MDS Enhancement is

only to be implemented on behalf of Amex, Amex shall pay Nasdaq for the entire

Fully-Loaded Cost associated with the MDS Enhancement. Costs for the creation

of an MDS Enhancement shall be paid by Amex as Non-Fund Costs under Section 7.2.

 

Amortization.  To the extent that Nasdaq can and does

amortize (as determined in Nasdaq’s sole discretion) the Fully-Loaded Cost

related to an MDS Enhancement developed on behalf of both itself and Amex (and

Nasdaq shall have no obligation to do so), Nasdaq shall charge Amex the

amortized amount of the Fully Loaded Cost. 

If the amortization period is longer than the period for which Nasdaq is

providing the Amex MDS Data, then upon the termination of the provision by

Nasdaq of the Amex MDS Data, Amex shall pay the portion of the Fully-Loaded

Cost not yet paid by Amex.

 

2

 

License.  Nasdaq hereby grants Amex an irrevocable,

non-exclusive, worldwide, perpetual, royalty-free license, with the right to

sublicense, to use and to make Derivative Works based upon, the MDS

Enhancements. Amex shall own the modifications, improvements, enhancements and

Derivative Works that it creates based on the MDS Enhancements.

 

iii.           MDS SOFTWARE, DOCUMENTATION AND

ASSISTANCE. As part of the Transition, Nasdaq hereby grants

Amex an irrevocable, non-exclusive, worldwide, perpetual, royalty-free license,

with the right to sublicense, to use and to make Derivative Works based upon

the Software (including source code) for the MDS System used to provide the

Amex MDS Data (the “MDS Software”). 

Amex shall own the modifications, improvements, enhancements and

Derivative Works that it creates based upon the MDS Software.

 

iv.            DEFINITION OF SHARE.

For MDS, Amex’s “Share” is equal to the percentage of Amex MDS Data’s daily

load in the MDS System in relation to the entire daily load of data in the MDS

System, except for matters involving costs for storage, in which case Amex’s

“Share” is the percentage of Amex MDS Data stored in the MDS System with

respect to all data stored in the MDS System.

 

b.  ISS/WISSDM. 

Nasdaq shall provide Amex with services, as set forth

herein, related to Nasdaq’s ISS/WISSDM System and permit Amex to have access to

the ISS/WISSDM System and the ISS/WISSDM data, as set forth herein.

 

i.              ISS/WISSDM DATA.  From the Agreement Date until the Critical

Milestone Date for ISS/WISSDM, Nasdaq shall continue, as it has prior to the

Agreement Date, to operate the ISS/WISSDM System so that Nasdaq makes available

to Amex the data that Nasdaq receives on behalf of Amex into the ISS/WISSDM

System (“Amex ISS/WISSDM Data”) and Nasdaq hereby assigns to Amex all right,

title and interest in and to the Amex ISS/WISSDM Data  (including third party vendor feed data, if permitted by Nasdaq’s

agreement with the vendor). As part of the Transition, the Parties shall agree

to a plan that permits the transfer to Amex of the Amex ISS/WISSDM Data

received by Nasdaq prior to the date that Nasdaq splits the ISS/WISSDM data

feed (including third party vendor feed data, if permitted by Nasdaq’s

agreement with the vendor and, if not permitted, the parties shall take

reasonable steps to obtain the vendor’s permission).  Neither Nasdaq nor Amex shall have any rights in the other’s data

from the ISS/WISSDM System.  Except as

otherwise set forth herein, after the Critical Milestone Date for the

ISS/WISSDM System, Amex shall commence the operation of its own database not on

Nasdaq’s premises as a substitute for the ISS/WISSDM System (“Amex Replacement

System”) and Nasdaq shall have no further obligation to provide Amex ISS/WISSDM

Data to Amex from the ISS/WISSDM System.

 

ii.            Nasdaq will

provide Amex with the Amex ISS/WISSDM Data at a rate equal to Amex’s Share (as

defined below) of the Fully Loaded Cost of the ISS/WISSDM System. In addition,

from the first anniversary of the “T” date (as that term

 

3

 

is

defined in Section 3.2), Amex shall pay a mark-up of *****  on the direct cost

component of the Share of the Fully-Loaded Cost of the ISS/WISSDM System. The

cost for ISS/WISSDM is a Non-Fund Cost as provided in Section 7.2.

 

iii.           REGULATORY ENHANCEMENTS.

 

General.  From the Agreement Date to the Critical

Milestone Date for ISS/WISSDM, Amex may request that Nasdaq develop

modifications or enhancements that Amex needs 

for the regulation of the Amex market (“ISS/WISSDM Enhancements”) to the

ISS/WISSDM System.  Nasdaq will provide

Amex with a reasonable estimated schedule for the implementation of the

ISS/WISSDM Enhancements.  If Amex

accepts the schedule, Nasdaq shall develop such ISS/WISSDM Enhancements. Nasdaq

will have no obligation to provide to Amex modifications or enhancements that

Amex does not need for the regulation of the Amex market. Disputes regarding

whether a proposed enhancement is needed for the regulation of the Amex market

shall be resolved as specified in Section 12.

 

Cost.  If Nasdaq chooses to implement an ISS/WISSDM

Enhancement on behalf of both itself and Amex, Amex shall pay Nasdaq Amex’s

Share of the Fully-Loaded Cost associated with the ISS/WISSDM Enhancement plus

the mark-up in effect at the time the ISS/WISSDM Enhancement is created. If the

ISS/WISSDM Enhancement is only to be implemented on behalf of Amex, Amex shall

pay Nasdaq for all of the Fully-Loaded Cost associated with the ISS/WISSDM

Enhancement plus the mark-up in effect at the time the ISS/WISSDM Enhancement

is created. Costs for the creation of an ISS/WISSDM Enhancement shall be paid

by Amex as Non-Fund Costs under Section 7.2.

 

Amortization.  To the extent that Nasdaq can and does

amortize (as determined in Nasdaq’s sole discretion) the Fully-Loaded Costs

related to an ISS/WISSDM Enhancement developed on behalf of both itself and

Amex (and Nasdaq shall have no obligation to do so), Nasdaq shall charge Amex

the amortized amount of the Fully Loaded Costs.  If the amortization period is longer than the period for which

Nasdaq is providing the ISS/WISSDM System, then upon the termination of the

provision by Nasdaq of the ISS/WISSDM System, Amex shall pay the Fully-Loaded

Costs not yet paid by Amex.

 

iv.            AMEX REPLACEMENT SYSTEM.

 

Safe Harbor.  In order to allow Amex to

determine the functionality for the Amex-developed  system that will replace Nasdaq’s ISS/WISSDM System, Amex shall

be entitled to examine the user manual (already provided) to the web version of

the ISS/WISSDM System and the ISS/WISSDM application, as observed by an end

user at a personal computer accessing the ISS/WISSDM System, to determine the

necessary functionality for the Amex Replacement System.  Amex is not entitled to any further

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

4

 

documentation or access to the ISS/WISSDM System or any other Nasdaq

system in order to determine requirements or design for the Amex Replacement

System.  In addition, Amex may not use,

directly or indirectly, any of the current and former Nasdaq employees and

independent consultants listed on Exhibit A to design or develop the Amex

Replacement System. The foregoing requirements shall be referred to herein as

the “Safe Harbor Guidelines.”

 

Effect of Complying with the Safe

Harbor.  If Amex

abides by the Safe Harbor Guidelines, Nasdaq will not sue Amex for infringement

of Nasdaq’s copyrights in and to Nasdaq’s ISS/WISSDM System or its

documentation or misappropriation of trade secrets contained in Nasdaq’s

ISS/WISSDM System or its documentation arising out of the development or use of

the Amex Replacement System. In addition, if Amex abides by the Safe Harbor

Guidelines, Nasdaq will not sue Amex for patent infringement arising out of the

development of the Amex Replacement System or Amex’s internal use of the Amex

Replacement System (i.e., use only on behalf of Amex and its

Affiliates). This agreement not to sue will continue even if Amex undergoes a

Change of Control so long as Amex complies with the Safe Harbor

Guidelines.  However, this agreement not

to sue will not apply if Amex develops the Amex Replacement System in violation

of the Safe Harbor Guidelines.

 

Investigation.  Nasdaq reserves the right, but without

obligation, to request that the Special Technology Consultant or independent

third party reasonably acceptable to Amex perform an independent assessment of

the development of the Amex Replacement System in order to determine whether it

was developed in conformance with the Safe Harbor Guidelines and Amex shall,

upon Nasdaq’s reasonable request, provide the auditor reasonable access to the

Amex Replacement System and related documentation.  Nasdaq shall not be bound by such independent assessment. Nasdaq

shall bear all costs of the assessment unless the assessment reveals that Amex

has failed to comply with the Safe Harbor Guidelines, in which case Amex shall

bear all costs of the assessment.

 

v.             Once the Amex

Replacement System is operational, Nasdaq will no longer be obligated to

provide Amex with the Amex ISS/WISSDM Data.

 

vi.            DEFINITION OF SHARE.

For ISS/WISSDM, Amex’s “share” is equal to the percentage of Amex issues in the

ISS/WISSDM System in relation to the total number of issues in the ISS/WISSDM

System for which it performs deficiency processing.

 

c.  NASDAQ  SIEBEL

SYSTEM.  Nasdaq shall provide

Amex with services, as set forth herein, related to the Nasdaq Siebel System

and permit Amex to have certain access to the Nasdaq Siebel System and data in

the Nasdaq Siebel System.

 

i.              NASDAQ SIEBEL SYSTEM DATA.  From the date that Nasdaq splits the Nasdaq

Siebel System, until the Critical Milestone Date for the Nasdaq Siebel System,

Nasdaq shall continue to make available to Amex the data that Nasdaq receives

from Amex as a result of Amex representatives inputting the information about

Amex issuers into the Nasdaq Siebel System (“Amex Siebel Data”) and Nasdaq

hereby

 

5

 

assigns

all right, title and interest in and to the Amex Siebel Data to Amex.  As part of the Transition of the Nasdaq

Siebel System, the Parties shall agree to a plan that permits the transfer to

Amex of the Amex Siebel Data received by Nasdaq prior to the date that Nasdaq

splits the Nasdaq Siebel System data feed. 

Neither Nasdaq nor Amex shall have any rights in the other’s data from

the Nasdaq Siebel System. Amex shall pay Nasdaq Amex’s Share (as defined below)

of the Fully Loaded Cost of the Nasdaq Siebel System. The costs for the Nasdaq

Siebel System are Non-Fund Costs as provided in Section 7.2

 

ii.            SIEBEL SOFTWARE, DOCUMENTATION AND

ASSISTANCE.  From the

Agreement Date to the Critical Milestone Date for the Nasdaq Siebel System, Nasdaq

shall provide Amex reasonable assistance and training, as set forth in this

Agreement, to allow Amex to prepare for the installation, operation, and

maintenance of a copy of the Siebel System, including the Nasdaq-developed  “many to many” and “power query” functions

(“Nasdaq-Developed Functions”) not on Nasdaq’s premises. Upon delivery of the

Nasdaq-Developed Functions Software and Documentation  to Amex, Nasdaq hereby grants to Amex, a perpetual,

non-exclusive, non-transferable, non-sublicensable, royalty-free personal right

and license to use, copy as needed, modify and create Derivative Works based

upon, the Nasdaq-Developed Functions and related Documentation owned by Nasdaq

and provided by Nasdaq for the sole purpose of Amex installing, operating, and

maintaining Amex’s copy of the Nasdaq-Developed Functions for its own internal

use with the Amex system that will replace the Nasdaq Siebel System.  Amex will not be entitled to any other

functionality, improvement, enhancement, or modification made by or for Nasdaq

to the Nasdaq Siebel System after delivery to Amex.  Amex shall own the modifications, improvements and enhancements

that it creates to the extent that such modifications, improvements and

enhancements do not copy, duplicate, reveal or otherwise incorporate Nasdaq’s

Intellectual Property or Confidential Information. Nasdaq shall own (and be

provided a copy of) the modifications, improvements and enhancements that Amex

creates to the extent that such modifications, improvements and enhancements do

copy, duplicate, reveal or otherwise incorporate Nasdaq’s Intellectual Property

or Confidential Information and the Derivative Works that Amex creates.  To the extent such modifications,

improvements and enhancements do copy, duplicate, reveal or otherwise

incorporate Nasdaq’s Intellectual Property or Confidential Information or to

the extent Amex creates a Derivative Work, Nasdaq hereby grants to Amex a

non-exclusive, non-transferable, non-sublicensable, royalty-free personal right

and license to use such modifications, improvements and enhancements or

Derivative Work for the sole purpose of Amex installing, operating, and

maintaining the Nasdaq-Developed Functions for Amex’s own internal use. Amex

represents that it has obtained its own license from Siebel Systems, Inc. in

order to operate Amex’s replacement for the Nasdaq Siebel System.

 

iii.           DEFINITION OF SHARE.

For the Siebel System, Amex’s “Share” is equal to the percentage of Amex issues

in the Nasdaq Siebel System in relation to the total number of issues in the

Nasdaq Siebel System.

 

d.  AMEX.COM; AMERICANSTOCKS.COM.  Nasdaq shall provide Amex with certain

access and services related to the web sites amex.com and americanstocks.com

(collectively, “amex.com”).

 

6

 

i.              AMEX.COM; AMERICANSTOCKS.COM

MAINTENANCE. 

Commencing with the Agreement Date and until the Critical Milestone Date

for amex.com, Nasdaq will continue to host said amex.com and will provide

certain maintenance services for amex.com. 

The maintenance services shall be as set forth in an attachment, to be

agreed to by the parties, to the Transition Plan.  On the Critical Milestone Date for amex.com, Nasdaq will cease

hosting amex.com and cease providing the previously agreed to maintenance services.

 

ii.            AMEX.COM; AMERICANSTOCKS.COM CODE.  Amex currently possesses code for amex.com

and americanstocks.com which Nasdaq provided for Amex review in anticipation of

the Transition (“Amex.com Code”).  Amex

had expressed a desire to incorporate part of the said code into a new

successor site to amex.com and americanstocks.com. Subject to Section 6.2,

Nasdaq hereby grants Amex an irrevocable, non-exclusive, worldwide, perpetual,

royalty-free license, with the right to sublicense, to use, and create Derivative

Works based upon the Amex.com Code (except for the Nasdaq logo ticker) and

related Documentation. Subject to Section 6.2, Amex shall own the

modification, improvements, enhancements and Derivative Works that it creates

based on the Amex.com Code (except for the Nasdaq logo ticker).

 

e.  AMEXTRADER.COM.

 

i.              GENERAL. Nasdaq

has provided Amex reasonable assistance and training, as set forth in this

Agreement, to allow Amex to prepare for the installation, operation, and

maintenance of a copy of the web site Amextrader.com on Amex’s premises.  Nasdaq hereby grants to Amex a

non-exclusive, non-transferable, non-sublicensable, personal right and license

to use, copy as needed, modify the Amextrader.com code, and related

Documentation provided by Nasdaq for the sole purpose of Amex installing,

operating, and maintaining Amex’s copy of Amextrader.com.  Amex will not be entitled to any version

other than the Amextrader.com code delivered to Amex, nor to any other functionality,

enhancement, or modification made by or for Nasdaq to Amextrader.com or

Nasdaqtrader.com, upon which amextrader.com is based, after delivery to

Amex.  Amex shall own the modifications,

improvements and enhancements that it creates to the extent that such

modifications, improvements and enhancements do not copy, duplicate, reveal or

otherwise incorporate Nasdaq’s Intellectual Property or Confidential

Information. Nasdaq shall own (and be provided a copy of) the modifications,

improvements and enhancements that Amex creates to the extent that such

modifications, improvements and enhancements do copy, duplicate, reveal or

otherwise incorporate Nasdaq’s Intellectual Property or Confidential

Information and the Derivative Works that Amex creates.  To the extent such modifications,

improvements and enhancements do copy, duplicate, reveal or otherwise

incorporate Nasdaq’s Intellectual Property or Confidential Information or Amex

creates a Derivative Work, Nasdaq hereby grants to Amex a non-exclusive,

non-transferable, non-sublicensable, personal right and license to use such

modifications, improvements and enhancements or Derivative Work for the sole

purpose of Amex installing, operating, and maintaining Amex’s copy of the web

site Amextrader.com for Amex’s own internal use.

 

7

 

ii.            ETF TRADER CODE. Subject

to

Section 6.2, but notwithstanding anything otherwise set forth

herein, Nasdaq hereby grants to Amex an irrevocable, non-exclusive, worldwide,

perpetual, royalty-free license, with the right to sublicense, to use, copy as

needed, modify and create Derivative Works based upon the code and related

documentation for the exchange traded funds section of Amextrader.com that it

possesses as of the Agreement Date (“ETF Trader Code”). Subject to Section 6.2,

Amex shall own the modifications, improvements, enhancements and Derivative

Works that it creates based on the ETF Trader Code.

 

iii.           CHANGE OF LOOK AND FEEL. No

later than ninety (90) days after the Critical Milestone Date for amex.com,

Amex shall alter the “look and feel” of the Amextrader.com site so that the

site does not resemble the Nasdaqtrader.com site. Upon such alteration, but

subject to Section 6.2, (i) Nasdaq hereby grants to Amex an irrevocable,

non-exclusive, worldwide, perpetual, royalty-free license, with the right to

sublicense, to use, copy as needed, modify and create Derivative Works based

upon the Amextrader.com code and related documentation; and (ii) Amex shall own

the modifications, enhancements and Derivative Works that it creates based on

the Amextrader.com code.

 

f.  NASDAQ LOGO TICKER.  As part of maintaining amex.com, Nasdaq will

maintain the version of the Nasdaq logo ticker (including the logos) that is

currently on amex.com until its maintenance obligations end.  Amex agrees that should an issuer object to

the placement of its logo on amex.com, Nasdaq shall request that the issuer

submit to Nasdaq a written objection and such written objection shall be

submitted to the Special Technology Consultant.  Nasdaq may remove that issuer’s logo from the Nasdaq logo ticker

on amex.com five (5) days after the submission to the Special Technology

Consultant. Amex will not be entitled to any version of the Nasdaq logo ticker

other than the version that is currently on Amex.com, nor to any other

functionality, enhancement, or modification made by or for Nasdaq to the Nasdaq

logo ticker and Amex has no ownership interest in the Nasdaq logo ticker.

 

g.  LISTING INVESTIGATION SERVICES.  Nasdaq shall provide to

Amex certain Listing Investigation Services as agreed to by the parties, that

shall terminate 18-24 months after the “T” date as defined in Section 3.2.  Amex shall provide notice to Nasdaq as to a

definite Critical Milestone Date for Listing Investigation Services no later

than twelve (12) months after the

“T” date.

 

h.  NASDAQ-AMEX DOMAIN NAME.

The ownership of “nasdaq-amex.com” shall be transferred to NASD. NASD shall

maintain that registration in perpetuity, and NASD will ensure that

“nasdaq-amex.com” will not be used as a URL by any individual or entity.

 

i.  MARKET OPERATIONS SERVICES.  Until the Critical Milestone Date for Market

Operations Services,  Nasdaq shall continue to provide Amex with

services from Nasdaq’s Market Operations Department (“Market Operations

Services”) as agreed to by the Parties.

 

8

 

j.  AMEXONLINE. From the

Agreement Date to the Critical Milestone Date for AmexOnline, Nasdaq will

continue to provide AmexOnline and AmexOnline support as it was implemented on

12/31/01 at a rate equal to $*****

for the 2002 calendar year. To the extent that Nasdaq is contractually

bound to pay I/B/E/S-Thomson Financial for the date feed to AmexOnline after

the Critical Milestone Date through 2003, Nasdaq and Amex agree to use their best

efforts in negotiations with Thomson Financial for the right to stop payment at

the Critical Milestone Date. If, despite Nasdaq’s and Amex’s best efforts,

Nasdaq is still obligated to pay some or all of the $**** that Nasdaq has previously committed for the Amex portion

of the I/B/E/S-Thomson data feed in 2003, Amex will reimburse Nasdaq for the

remaining portion of the Amex-related commitment that remains up to $****.  The

cost for AmexOnline is a Non-Fund Cost as provided in Section 7.2

 

k.  ECONOMIC RESEARCH

DATABASES. Until the Critical Milestone Dates for the

Economic Research Databases, Nasdaq shall continue to provide to Amex certain

data from Nasdaq economic research databases as it has prior to the Agreement

Date and as further described herein. Nasdaq shall provide summary data on all

markets from the Daily, Monthly, Yearly and NProf data files for so long as

Amex MDS Data is provided. Nasdaq shall provide data from the Delist and

Liquidity databases until the Critical Milestone Dates for those databases.

Amex acknowledges that the Delist and Liquidity databases will not be updated

in any manner by Nasdaq. Nasdaq shall provide data from the Short Interest

database until the Critical Milestone Date for that database. Nasdaq shall

continue to provide Amex certain data in the DataMart and CommFin databases as

it has prior to the Agreement Date; however, Nasdaq reserves the right to

remove only those data elements that are based on underlying data or raw data

that is both confidential and proprietary to Nasdaq. The reports provided by

Nasdaq under this Section and all Intellectual Property in and to the same

shall remain owned by Nasdaq, provided that Nasdaq hereby assigns to Amex all

right, title and interest in and to the data provided from the Amex CommFin

database. Nasdaq hereby grants to Amex a non-exclusive, non-transferable,

non-sublicensable, personal right and license to reproduce, modify and use for

internal purposes only (which may include use in connection with marketing),

the data and reports provided under this Section. Nasdaq shall provide this

data through the Critical Milestone Dates for the Economic Research Databases

for $****. 

The cost for data from Economic Research Databases is a Non-Fund

Cost as provided in Section 7.2.

 

1.2           Purpose

of the Agreement.  The

Parties shall work in good faith to implement the Transition.  The Parties agree that the Transition

requires efforts on the part of all of the Parties.  This Agreement contains a framework for the allocation of the

responsibilities and schedules for completing the Transition.

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange Commission.

 

9

 

1.3           The

Parties’ Responsibilities. Each Party shall perform such tasks

as assigned to it in the Transition Plan or as agreed to by the Parties to

implement and complete the Transition. The Parties shall give their top priority

to the Transition.

 

1.4           Omitted

Technology.  In the event

that the description of Nasdaq Technology is incomplete in that there is

software, data, information, and/or services that Nasdaq has provided prior to

the Agreement Date or is providing to Amex, as of the Agreement Date, or

software, data, information, and/or services that Amex provided prior to the

Agreement Date or is providing to Nasdaq as of the Agreement Date that was

inadvertently omitted from the Nasdaq Technology, the Parties shall meet as

soon as possible to discuss the terms of the transition of that omitted

technology with the intention that such terms will be similar to those

governing, as set forth herein, that part of the Nasdaq Technology that is

similar to the omitted technology, as an aid to transitioning the omitted

technology.  Any disagreements between

the Parties as to the omitted technology will be raised as a Dispute under the

Master Agreement

 

1.5           Allocation

of Responsibilities as to Third Party Data, Information, Software and

Technology for Amex.com. 

Amex acknowledges that third party data, information, software and

technology are part of Amex.com.  Amex

has undertaken to obtain separate agreements with all vendors of such data,

information, software and technology to the extent it will continue to be

received by Amex. As of the Agreement Date, Amex has entered into agreements

with all third party data vendors that it knows are providing data for Amex.com

except for Bridge Information Systems (“Bridge”). Amex has reached conceptual

agreement with Bridge regarding data for Amex.com, but has not executed a

definitive agreement with Bridge regarding 

that data. Amex shall work diligently to execute a definitive agreement

with Bridge consistent with the conceptual agreement between Amex and Bridge.

If Amex is unable to reach conceptual agreement with Bridge consistent with the

conceptual agreement, the Special Technology Consultant shall dictate the

parties’ obligations with respect to Bridge data. Nasdaq shall provide Amex with

reasonable assistance in Amex’s efforts to enter into a separate agreement with

Bridge. To the extent StockPoint has charged Amex more than $*****  for 2001, Nasdaq and Amex

shall share the excess equally, but offset by any savings Amex realizes on its

contracts with Bridge and Financial Insight Systems/EDGAR Online over its

amount previously budgeted for 2001. To the extent Nasdaq bears any liability

to third party providers for Amex.com with respect to use of their data,

information, software or technology by Amex after Amex assumed responsibility

for their data, information, software or technology, Amex shall indemnify and

hold Nasdaq harmless for one half of any such liability.

 

1.6           Change of

Nasdaq Platform.  If

Nasdaq intends on its own initiative to change any system used to provide

Nasdaq Technology (including, but not limited to, changing the platform on

which such system runs), it shall give notice to Amex as early as reasonably

practical and give Amex the option to have the Nasdaq Technology

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange Commission.

 

10

 

provided

from the changed system. Amex may elect to have the Nasdaq Technology continue

to be provided from the unchanged system, provided that Amex acknowledges that

the costs of providing that technology may increase as Nasdaq may have reduced

economies of scale.

 

SECTION

2.                STEERING COMMITTEE

 

2.1           Steering

Committee; TSC Co-Chairs.  The

Parties shall jointly establish a steering committee (the “Technology Steering

Committee”) to supervise the performance of the Parties pursuant to this

Agreement and to address legal, technical, operational, and regulatory issues

that arise out of the operation of the Transition, and each Party has or shall

appoint a Technology Steering Committee Co-chair (the “TSC Co-Chairs”) that

will be the primary contact between the Parties hereto and who will have the

authority to bind the Party.  The TSC

Co-Chairs are *****

(Amex), ****  (Nasdaq), and **** (NASD).  All

decisions of the TSC Co-Chairs shall be unanimous.  The Technology Steering Committee shall be comprised of members

from the Nasdaq, NASD and Amex Families 

as may be agreed to by the TSC Co-Chairs and set forth in the Transition

Plan.  Each TSC Co-Chair may appoint a

designee to fulfill some or all of that TSC Co-Chair’s responsibility.

 

2.2           Meetings.  The Parties agree that each Party shall

provide to the other Parties the names of its staff that shall be responsible

for meeting Milestone Dates. The Technology Steering Committee shall meet,

either in person or by or a conference call, at the request of a Party, but no

less that once a month, until the last of the Critical Milestone Dates (as

extended by any period of Post-Transition Support under Section 3.5) to discuss

progress of the Transition.  The Special

Technology Consultant will attend all Technology Steering Committee

meetings.  The Transition Plan shall

serve as an agenda for each meeting and the individuals appointed by the TSC

Co-Chairs shall update the Transition Plan after each meeting.

 

2.3           Progress

Report.  After each

meeting or conference call, the appointed Technology Steering Committee

member(s) shall (and any other member may) update the Transition Plan

including, but not limited to, specifying in detail:

 

a.  any critical problem

encountered, discovered, or continuing during the preceding month, as the case

may be, including, without limitation, the failure of any Party in performing,

any delay of any Party in performing or the inadequate performance of any Party

which may prevent or tend to prevent completion of any task by the Milestone

Dates set forth in the Transition Plan;

 

b.  the estimated length of

any delay which may result from any critical problem; and

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

11

 

c.  the specific steps taken

or proposed to be taken by either or both Parties, as appropriate, to remedy

such critical problem.

 

SECTION

3.                TRANSITION PLAN

 

3.1           Transition Plan.  The Parties have begun to develop a detailed

implementation plan (the “Transition Plan”) for the Transition.  As used in this Agreement, the term

“Transition Plan” shall incorporate time schedules, equipment requirements and

other matters referenced in this Agreement. 

The Transition Plan shall allocate the development and implementation

responsibilities of each Party as set forth hereunder and shall describe, but

not be limited to, the following:

 

a.  transitioning

amextrader.com;

 

b.  maintaining amex.com and

americanstocks.com;

 

c.  providing certain services

through the MDS System; the ISS/WISSDM System; and the Siebel System as set

forth herein;

 

d.  developing a timetable for

the performance of each task (or completion of each deliverable) to be performed

by a party;

 

e.  developing a list of third

party providers/vendors with which Amex must execute its own agreements; and

 

f.  identifying the software,

equipment and personnel that Amex must provide for the Transition (except as

otherwise set forth herein).  Nasdaq

will provide appropriate software and personnel to support its responsibilities

in the Transition (except as otherwise set forth herein).

 

3.2           Milestone

Dates.  The Transition

Plan shall include dates by which certain tasks must be completed (“Milestone

Dates”), some Milestone Dates to be labeled as “critical” (“Critical Milestone

Dates”), for successful and timely implementation of the Transition.  Parts of the Nasdaq Technology shall have

different Critical Milestone Dates.  The

Critical Milestone Dates are as follows 

(“T” being the earlier of the Agreement Date or the date on which Amex

first obtains funding for the Transition):

 

•                                          for

Siebel:  T + 3 months;

 

•                                          for

AmexTrader:  T + 3 months;

 

•                                          for

ISS/WISSDM:  T + 2 years;

 

•                                          for

MDS:   T + 1 year;

 

•                                          for

Amex.com/americanstocks.com:   T + 5

months;

 

•                                          for

Listing Investigations:  T + 18-24

months;

 

12

 

•                                          for

Market Operations:  T + 12 months;

 

•                                          for

AmexOnline:  T + 12 months; and

 

•                                          for

Economic Research Databases:

 

•                                          DataMart:  June 30,

2002;

 

•                                          CommFin:  June 30,

2002;

 

•                                          Summary

data (Daily, Monthly, Yearly, NProf):  T

+ 12 months;

 

•                                          Delist

and Liquidity data:  T + 3 months but in

no event beyond March 31, 2002;

 

•                                          Short

Interest data:  T + 3 months.

 

Anything herein to the contrary notwithstanding, the

Critical Milestone Dates may only be altered by written agreement of the TSC

Co-chairs.  The Parties recognize that

all deliverables and schedules related to such deliverables, including the

Milestone Dates but not including the Critical Milestone Dates, are based on

certain assumptions about the basic functionalities of each others’ systems and

that each deliverable and schedule related to the deliverable are contingent on

the terms and conditions preceding the event, as specified in the Transition

Plan. If the Transition Plan must be modified, the Parties agree to follow the

procedures in Section 3.3 below.

 

3.3           Modifications.  Prior to a Critical Milestone Date, a Party

may request a modification to that part of the Transition Plan leading up to

that Critical Milestone Date which request shall be presented to the other

Parties in writing.  Any such request

shall indicate whether the modification, in the reasonable and good faith

judgment of the requesting Party, would result in an extension of, or other

change to, the Milestone Dates and shall be directed to the TSC Co-chairs.  Such a request shall not be unreasonably

denied.  However, if a Party receiving

the request believes that the request for modification is not reasonable based

on the determination that the Critical Milestone Date will not be met, such

request for modification will be raised as a Dispute under the Master

Agreement.

 

3.4           Extension

of Milestone Dates.

 

a.  The Parties acknowledge

that although the Parties may agree, from time to time, to modify schedules and

other important Milestone Dates, none of the Parties has wide-ranging

flexibility to extend a Critical Milestone Date as may be requested by any

other Party.  Anything herein to the

contrary notwithstanding, in the event of any delay, or threatened delay in

meeting a Critical Milestone Date, other than an event of Force Majeure

discussed below in Section 3.4(b), a Party shall raise the

issue as a Dispute under the Master Agreement. 

The Parties may waive raising such issue as a Dispute if they all agree.

 

13

 

b.  The Parties’ rights and

obligations in the event of an occurrence of force majeure shall be as set

forth in Article 8 of the Master Agreement.

 

c.  In order to anticipate and

reduce the effect of delays or failures, the Parties agree to notify each other

as soon as there is any reason to believe that any Milestone Date will be

delayed.

 

3.5           Post-Transition Support.

 

a.  Notwithstanding anything

otherwise set forth in the Master Agreement, should Amex require Nasdaq to

continue to provide Amex with Nasdaq Technology to Amex as set forth herein

after a Critical Milestone Date (“Post-Transition Support”), Amex shall provide

Nasdaq written notice specifying the period of support requested (not to exceed

ninety (90) days as soon as Amex has reason to believe that such

Post-Transition Support will be necessary, but no later than thirty (30) days  prior to the Critical Milestone Date for

that part of the Nasdaq Technology. Amex may request that, for all Nasdaq

Technology except the Economic Research databases, Post-Transition Support be

provided for up to three additional periods (including in increments but each

period not to exceed ninety (90) days by providing notice to Nasdaq as soon as

Amex has reason to believe that such additional Post-Transition Support will be

necessary, but at least thirty (30) days  prior

to the expiration of the then-current period of Post-Transition Support. Amex

may, thus, for all Nasdaq Technology except the Economic Research databases,

request Post-Transition Support for up to three hundred and sixty (360) days.

For the DataMart and CommFin Economic Research databases (and only those

Economic Research databases), Amex may request only one Post-Transition Support

period not to exceed ninety (90) days.

 

b.  If properly requested,

Nasdaq shall provide Post-Transition Support for Nasdaq Technology other than

the DataMart and CommFin databases at a rate equal to i) the Fully-Loaded Cost

for the Nasdaq Technology associated with the Post-Transition Support, plus ii)

the mark-up specified below on the direct cost component of that Fully Loaded

Cost. For such Nasdaq Technology used to support both Nasdaq and Amex, Amex

will only be responsible for its Share of that Fully Loaded Cost plus the

mark-up on its Share. For MDS, ISS/WISSDM and Siebel, Amex’s “Share” shall have

the meaning specified in Sections 1.1(a)(iv), 1.1(b)(vi),  1.1(c)(iii),

respectively.  For AmexOnline, Amex’s “Share” shall be *****. For the DataMart and

CommFin databases, if properly requested, Nasdaq shall provide one ninety (90)

day period of Post-Transition Support for ****.

 These costs shall be Non-Fund

Costs as provided in Section 7.2.

 

c.  If Nasdaq develops any MDS

Enhancements or ISS/WISSDM Enhancements during a period of Post-Transition

Support, in addition to any Fully Loaded Costs to be paid by Amex for the

enhancements, Amex shall pay a mark-up on the direct cost component of the

Fully Loaded Costs incurred during the period of Post-Transition Support as

specified below. Notwithstanding the foregoing, if the original

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

14

 

schedule

proposed by Nasdaq for the development of the enhancement called for it to be

complete before the relevant Critical Milestone Date or the end of a period of

Post-Transition Support, Amex will not be required to pay any mark-up resulting

from the extension of development into a first or subsequent Post-Transition

Support period if the delay was caused by Nasdaq’s negligence or willful delay,

or Amex approved the delay in writing; and Amex will only be required to pay

one-half of the otherwise applicable markup if the delay was not caused by the

negligence or willful delay of either party. If the delay was caused by the negligence

or willful delay of Amex, the full mark-up will apply.

 

d.  The mark-up on the direct

costs component of Fully Loaded Costs shall be as follows:

 

	

  Technology

  	

   

  	

  First 90-

  Day Period

  	

   

  	

  Second 90-

  Day Period

  	

   

  	

  Third 90-Day

  Period

  	

   

  	

  Fourth 90-Day

  Period

  	

   

  
	

  MDS, Listing Investigations

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  
	

  ISS/WISSDM

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  
	

  Siebel,

  AmexOnline, amex.com, americanstocks.com, amextrader.com, Market Operations

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  	

  ****

  	

   

  

 

e.  For purposes of Section 1.1,

the Critical Milestone Date for each component of Nasdaq Technology shall be

deemed extended to the end of any period of Post-Transition Support for that

component.

 

3.6           Early

Termination of Receipt of Nasdaq Technology.  Upon sixty (60) days’ written notice, Amex

may discontinue the receipt of any item of the Nasdaq Technology. Amex shall be

liable for all costs due to Nasdaq pursuant to this Agreement up to the

effective date of discontinuance plus Nasdaq’s reasonable Fully-Loaded Costs

associated with winding down the provision of that element of the Nasdaq

Technology. It is anticipated that these costs may include amounts already

expended in the development of enhancements for Amex, termination fees due to

consultants, severance amounts paid to employees who were solely dedicated to

providing services for the Transition (but such fees for any individual

employee shall not exceed Nasdaq’s standard severance package for an employee

who had been working at Nasdaq for the same period of time as that employee had

been performing services solely for Amex) and depreciation for equipment that

was expected to be used up to a Critical Milestone Date. Nasdaq will use

commercially reasonable efforts to mitigate these costs.

 

15

 

3.7           Post-Critical

Milestone Date.  Subject

to this Agreement and assuming all obligations leading up to the Critical

Milestone Dates are fulfilled, after the Critical Milestone Dates, the

Transition shall be complete and the Parties will no longer have any

obligations to the other Parties as the operation, development, maintenance or

support of the Nasdaq Technology, unless the Parties otherwise agree (except

with respect to those parts of the Nasdaq Technology for which Amex has the

right as set forth herein to request Post-Transition Support, where if Amex

elects to receive Post-Transition Support, if applicable, in which case the

Parties obligations with respect to those parts of the Nasdaq Technology shall

terminate at the end of the period of Post-Transition Support).

 

3.8           Change of

Control.

 

a.  MDS.  Until the Critical Milestone Date for the

MDS system (as extended by any period of Post-Transition Support), Amex will be

entitled to receive Amex MDS Data for its own base issues and issues not added

as a result of Change of Control that involves, directly or indirectly, a

listing venue.  In addition, if Amex

undergoes a Change of Control that involves, directly or indirectly, a listing

venue (including, but not limited, to instances where the Change of Control

involves a Person that is an Affiliate of a listing venue), the number of Amex

issues included in the Amex MDS Data as a result of the Change of Control may

increase annually by up to ***** of the number of Amex base issues,

as of the time of the Change of Control (e.g., if on January 1, 2003, Amex is

acquired by or acquires another exchange and, at that time, Amex has 800 equity

listings, it will be entitled in 2003 to receive Amex MDS Data for up to 80

issues that are Amex issues due to the Change of Control, and 168 such issues

in 2004). Issues that are brought to list on Amex by Persons who are not

listing venues, but who have acquired Control of Amex shall not be considered

Amex issues as a result of Change of Control.

 

b.  ISS/WISSDM.  From the date that Nasdaq splits the

ISS/WISSDM data feed until the Critical Milestone Date for the ISS/WISSDM

System (as extended by any period of Post-Transition Support), Amex will be

entitled to the use of the ISS/WISSDM System for its own base issues and issues

not added as a result of Change of Control that involves, directly or

indirectly, a listing venue.  In

addition, if Amex undergoes a Change of Control that involves, directly or

indirectly, a listing venue (including, but not limited, to instances where the

Change of Control involves a Person that is an Affiliate of a listing venue),

the number of Amex issues included in the ISS/WISSDM System as a result of the

Change of Control may increase annually by up to ***** of the number of Amex base issues, as of the

time of the Change of Control (e.g., if on January 1, 2003, Amex is acquired by

or acquires another exchange and, at that time, Amex has 800 equity listings,

it will be entitled in 2003 to access the ISS/WISSDM 

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

16

 

System for up to 80 issues that are Amex issues due to the Change of

Control, and 168 such issues in 2004). Issues that are brought to list on Amex

by Persons who are not listing venues, but who have acquired Control of Amex

shall not be considered Amex issues as a result of Change of Control.

 

c.  Siebel.  During any period of Post-Transition Support

for Siebel (as extended by any period of Post-Transition Support), Amex will be

entitled to the use of the Siebel System for its own base issues and issues not

added as a result of Change of Control that involves, directly or indirectly, a

listing venue.  In addition, if Amex

undergoes a Change of Control that involves, directly or indirectly, a listing

venue (including, but not limited, to instances where the Change of Control

involves a Person that is an Affiliate of a listing venue), the number of Amex

issues included in the Siebel System during the period of Post-Transition

Support as a result of the Change of Control may increase annually by up to **** of the number of Amex base issues, as

of the time of the Change of Control. Issues that are brought to list on Amex

by Persons who are not listing venues, but who have acquired Control of Amex

shall not be considered Amex issues as a result of Change of Control.

 

d.  Economic Research Databases.  If Amex undergoes a Change of Control that

involves, directly or indirectly, a listing venue (including, but not limited,

to instances where the Change of Control involves a Person that is an Affiliate

of a listing venue), Nasdaq may immediately terminate the provision of all

Services related to the CommFin and DataMart Economic Research databases.

 

e.  General.  If Amex undergoes a Change of Control

involving an acquisition by or other combination, direct or indirect, with the

New York Stock Exchange, Nasdaq may immediately terminate the provision of all

Services related to ISS/WISSDM. For all Nasdaq Technology (other than

ISS/WISSDM when the New York Stock Exchange is involved), if the Amex undergoes

a Change of Control, Nasdaq will continue to provide such Nasdaq Technology to

Amex until the earlier of:  (i) the Critical

Milestone Date for such Nasdaq Technology; or (ii) six (6) months from the date

that Amex undergoes the Change of Control. During that six (6) month period or

up until the Critical Milestone Date, as applicable, Amex shall pay an

additional mark-up (in addition to any other mark-up that may be applicable) on

the direct cost component of all relevant Fully Loaded Costs equal to the

mark-up that would apply during the first Post-Transition Support period for

the relevant Nasdaq Technology. After that date, Nasdaq may stop providing such

Nasdaq Technology and any further Post-Transition Support.

 

SECTION

4.                STAFFING, TRAINING AND

EQUIPMENT.

 

4.1           Mutual

Obligation to Provide Information and Personnel.  Each Party shall make available to the other

Parties such information and personnel knowledgeable in its operations as

specified in the Transition Plan or agreed to by the Parties to facilitate

timely completion of a Party’s obligations. 

The Parties shall staff the project in accordance with the Transition

Plan or as otherwise agreed to hereafter.

 

4.2           Training.  Nasdaq shall provide all reasonable

instruction and training to enable Amex to understand the Nasdaq Technology as

provided by Nasdaq. Instruction

 

17

 

and

training shall be limited to the code and configuration specific to the

applications.  Nasdaq will not provide

instruction or training on Oracle, C++ or other programming protocols, third

party software packages (except for Siebel as provided herein) or training on

production support for NT, Sequent, Unisys, or Oracle platforms and operating

systems.

 

4.3           Equipment.  Each Party shall provide all requisite

hardware and other equipment assigned to it in the Transition Plan or as agreed

to by the Parties.

 

SECTION

5.                EMPLOYEES

 

5.1           Performance

Standards.  The standards

for the performance of the Nasdaq Technology furnished pursuant to the terms of

this Agreement that were in effect upon the Effective Date of this Agreement

will remain in full force and effect until such time as the Parties may

mutually agree upon appropriate new criteria to replace them.  All other work or tasks shall be performed

in a good and workmanlike manner.

 

5.2           Conduct

of Personnel.  Each Party

warrants that while on-site at facilities of the other Parties, its personnel

will comply with the sections of the other Parties’ Employee Handbooks related

to Equal Employment Opportunities, Sexual Harassment, and Substance Abuse

Policies as if its personnel were employees of such Parties.  Each Party will provide the other Parties

with a current copy of its Employee Handbook within ten (10) days of the

Effective Date of this Agreement. Each Party will also promptly provide the

other Parties with copies of any updates to its Employee Handbook.

 

5.3           Security.  Each Party will instruct its personnel to

comply with the security regulations in effect at the facilities of the other

Parties that its personnel may visit.

 

5.4           Removal

of Personnel.  In the course of performing pursuant to this Agreement, if a Party

notifies either of the other Parties that it is not satisfied with the

performance or conduct of an employee of that Party, that Party will promptly

a) investigate the matter and take appropriate action which may

include:  (i) removing the

applicable person from that Party’s performance of this Agreement and providing

the notifying Party with prompt written notice of such removal; and

(ii) replacing the applicable person with a similarly qualified

individual; and b) take such other action as it deems appropriate to prevent

a recurrence.  For alleged breaches of

security and violations of confidentiality while a Party’s personnel are on

another Party’s site or in instances where a Party reasonably believes that

another Party’s personnel pose a risk to the operation of its business or other

bona fide business reason while on that Party’s site, the Party may remove the

personnel in question, provided, that, it first notifies the

other Party of its concerns if it is reasonably feasible for it to furnish such

notice.  The Party whose personnel were

removed will promptly replace such personnel at its own cost.

 

5.5           Improper

Conduct.  In the event

that a Party suspects that any employee of another Party who has been involved

in the performance of this Agreement has been involved in improper, illegal or

unethical use of any data or information, including, but not limited to, Nasdaq

Technology or misuse of other Confidential Information, gained or

 

18

 

accessed

from such performance or received as part of this Agreement furnished by such

other Party, then it may notify the other Party and request that it conduct an

investigation of such individual. The Party requesting such investigation will

provide such assistance to the Party conducting such investigation as the

investigating Party may reasonably request.

 

SECTION

6.                OWNERSHIP AND LICENSES

 

6.1           Ownership.  NASD and Amex do not acquire any right or

interest in the Nasdaq Technology, except as expressly provided herein.  Unless otherwise set forth herein, title and

full ownership rights in and to all Nasdaq Technology, in whole or in part,

whether copies of such technology were delivered to NASD or Amex or

subsequently made by NASD, Amex or on either’s behalf, shall remain with

Nasdaq.  In no event shall any licenses

granted in this Agreement be construed to include the right to market, license,

or otherwise transfer or assign all or any portion of the Nasdaq Technology,

except as expressly provided herein.  In

the event NASD or Amex is vested by operation of law or otherwise with the

ownership of any right, title or interest in any Derivative Work specified

hereunder as to be owned by Nasdaq, NASD and Amex hereby assign and transfer to

Nasdaq, and agree to cause any of their officers, employees, or agents who may

be vested with such ownership to assign and transfer to Nasdaq, by written

agreement satisfactory to Nasdaq, any and all right, title, and interest in

such Derivative Work. In the event NASD or Nasdaq is vested by operation of law

or otherwise with the ownership of any right, title or interest in any data

specified hereunder as to be owned by Amex, NASD and Nasdaq hereby assign and

transfer to Amex, and agree to cause any of their officers, employees, or

agents who may be vested with such ownership to assign and transfer to Nasdaq,

by written agreement satisfactory to Amex, any and all right, title, and

interest in such data.

 

6.2           Corporate

Names; Trade/Servicemarks. 

Nothing in the Agreement shall be deemed to grant a Party the right to

use the other Parties’ names, trade marks, or service marks.

 

6.3           On-Site

Visits.  The Transition

Plan may include a reasonable number of on–site visits to the other’s

facilities by each Party’s staff at a time and place agreed by the Parties.

 

6.4           Additional Terms.  The following provisions shall also be

applicable:

 

a.  Use of the Nasdaq

Technology shall be limited to the purposes set forth in the Agreement.

 

b.  Amex shall accurately

produce and reproduce all Nasdaq Intellectual Property notices on all copies

Amex receives, produces or reproduces of the Nasdaq Technology and any other

Nasdaq Confidential Information.  In no

event shall Amex remove or alter any such notices from any materials.

 

c.  The Software and

Documentation shall be considered Confidential Information as set forth in the

Agreement, notwithstanding the lack of any marking as to confidentiality, and

they shall be treated as such by NASD and Amex.

 

19

 

d.  NASD and Amex shall attest

in writing to the number and location of all copies of the Software upon ten

(10) days prior written notice from Nasdaq.

 

e.  Documentation furnished to

NASD and Amex may be reproduced as needed by Amex for its authorized users, for

the purposes for which the Documentation was provided.

 

6.5           Return or

Destruction.  If Amex

discontinues use without the intention to resume permitted use of any Nasdaq

Technology that is not perpetually licensed to Amex hereunder, it will notify

Nasdaq in writing and return all copies of such Nasdaq Technology to Nasdaq if

Nasdaq requests the same in writing within thirty (30) days after Amex’s notice

of discontinuance. If Nasdaq does not request a return of such Nasdaq

Technology in writing within thirty (30) days after Amex’s notice of discontinuance,

Amex shall certify destruction of the same to Nasdaq.

 

6.6           Exclusion

of All Other Rights. 

Except as expressly provided herein, the Parties are  granted no rights or licenses whatsoever to

the property or rights of the other Parties. 

All rights and licenses not expressly granted in this Agreement are

hereby expressly reserved by owners of those rights or licenses.

 

SECTION

7.                COSTS AND PAYMENT

PROCEDURES.

 

7.1           Payment

Fund and Billing Procedures. 

Within  five (5) days of the Agreement Date, NASD shall establish on

behalf of the Parties an interest-bearing money market account at a financial

institution where NASD is currently a customer that will serve as the account

(“Fund”) from which the Parties shall obtain reimbursement for certain reasonable

costs that they incur as Amex becomes separate from Nasdaq Technology.

(“Self-Sufficiency Costs”).  A

description of the types of Self-Sufficiency Costs that have been approved is

attached hereto and incorporated herein as Exhibit B.

 

a.  NASD shall be the

administrator of the Fund and its cost of administration shall be considered a

Self-Sufficiency Cost.

 

b.  Nasdaq, NASD and Amex

shall deliver to each of the TSC Co-Chairs at the Technology Steering Committee

meetings their respective invoices, with any necessary backup, in form

reasonably agreeable to the Parties, with respect to the amount of the

Self-Sufficiency Costs borne by such Party for the period preceding the

Technology Steering Committee meeting.

 

c.  Following delivery of the

documentation referred to above, the Party receiving such documentation and/or

its representative(s) shall be given reasonable opportunity to review the

documentation and other underlying information related to the above and to

discuss the same with the Party delivering the documentation.  A Party shall have until ten (10) days,

absent bad faith on the part of the Party delivering the documentation, to give

written notice in reasonable detail to the Party supplying the documentation

(through its TSC Co-Chair) of any disagreement regarding such report (an

“Objection Notice”).  Copies of such

Objection Notices shall be forwarded to the other TSC Co-Chair.  Absent such timely delivery of an Objection

Notice and bad faith on the Party delivering the documentation, the documentation

as delivered shall be

 

20

 

presumptively

binding (but such designation shall not impact the audit rights of a Party

pursuant to the Master Agreement) on the Parties hereto.  Any objections shall be resolved pursuant to

the Dispute Resolution procedures set forth in the Master Agreement.

 

d.  Invoices that are

presumptively binding shall be submitted to the NASD’s designee for payment to

NASD, Amex or Nasdaq, as applicable. 

Upon notice from NASD that funds are needed, NASD and Nasdaq will each

deposit into the Fund equal amounts of the funds needed within fifteen (15)

days.  The total amount to be deposited

into the Fund over the life of the Fund shall be $29 million. NASD and Nasdaq

shall each be responsible for depositing no more than $14.5 million in the Fund

over the life of the Fund for reimbursement of the Self-Sufficiency Costs. Any

amounts that remain in the Fund after the Transition (i.e., the difference between

$29 million and all funds spent, with binding approval, during the Transition)

shall be paid equally to Amex, Nasdaq and NASD.

 

7.2           Non-Fund

Costs.  Costs to Nasdaq for the provision of the

Nasdaq Technology to Amex shall not be reimbursable from the Fund (“Non-Fund

Costs”) and shall be paid to Nasdaq directly by Amex within thirty (30) days of

receipt of an invoice.  Such costs shall

be calculated as Fully Loaded Costs.

 

7.3           Price/Cost

Information; Cost Reduction Strategies.  As part of their respective budget

processes, Nasdaq will provide Amex annually the expected pricing  for the Nasdaq Technology to be furnished

pursuant to the terms of this Agreement for the upcoming budget year and each

Party will provide to the other Parties its expected Self-Sufficiency Costs for

the upcoming year.  During the year,

Nasdaq will notify Amex as promptly as reasonably possible should Nasdaq

discover that the actual pricing for the Nasdaq Technology will be materially

different than the estimate previously submitted and each Party will notify the

other Parties as promptly as reasonably possible after a Party discovers that

its actual Self-Sufficiency Costs will be materially different than the

estimate previously submitted.  The

Parties will also review the feasibility of establishing specific cost reduction

and limitation objectives annually

 

SECTION

8.                REPRESENTATIONS AND

WARRANTIES.

 

8.1           Representations

and Warranties of the Parties. 

Each Party’s representations and warranties to the other are as set

forth in Article 11 of the Master Agreement. In addition, each Party represents

and warrants that it has not used any other Party’s data, information, Software

or Documentation for any other purpose than the one for which the data,

information, Software or Documentation was provided.

 

8.2           Exclusion

of Implied Warranties. 

These warranties and the warranties set forth in Article 11 of the

Master Agreement are exclusive and expressly in lieu of all other warranties,

and each Party explicitly disclaims all other warranties, express or implied,

including any warranty of merchantability or fitness for a particular purpose.

 

SECTION

9.                CONFIDENTIAL INFORMATION.  The Parties’ confidentiality obligations

shall be as set forth in Article 4 of the Master Agreement but, notwithstanding

 

21

 

anything otherwise set forth therein, those

confidentiality provisions shall supersede the Confidentiality and

Non-Disclosure Agreement dated June 22, 2001 and previously executed between

Nasdaq and Amex.

 

SECTION

10.             TERM.  The term of this Agreement shall commence on

the Agreement Date and shall continue 

as set forth in Article 6 of the Master Agreement.

 

SECTION

11.             INDEMNIFICATION

 

11.1         Mutual

Indemnity.  The Parties’

indemnification obligations shall be as set forth in Article 3 of the Master

Agreement.

 

11.2         Infringement

of Intellectual Property Rights.  In the event that Amex’s use of the Nasdaq Technology under this

Agreement is or Nasdaq determines is likely to be enjoined due to a claim

covered by the indemnity obligations set forth in this Section, Nasdaq may, at

its expense and at its sole discretion, either:  (i) procure for Amex the right to use the enjoined Nasdaq

Technology; or (ii) replace or modify the infringing portion of the Nasdaq

Technology with a non-infringing equivalent substitute provided, however, that,

if none of the above two options are reasonably available after commercially

reasonable efforts by Nasdaq to accomplish the same, Nasdaq may, upon thirty

(30) days notice, terminate the license and all related rights and

responsibilities in connection with the infringing portion of the Nasdaq

Technology.

 

11.3         Extent of

Liability.  If the use of

any component of the Nasdaq Technology by Amex is enjoined due to a claim

covered by the indemnity obligations set forth in Article 3 of the Master

Agreement or Nasdaq terminates Amex’s right to use that component under Section 11.2,

if Nasdaq knew of the claim or the likelihood of such a claim as of the

Agreement Date, Nasdaq shall pay to Amex an amount equal to the fair market

value of the component whose use is enjoined.

 

SECTION

12.             DISPUTE RESOLUTION.  The Parties’ dispute resolution

agreement obligations shall be as set forth in the Master Agreement, except

that:  (i) Disputes regarding whether a

proposed enhancement is needed for the regulation of the Amex market shall be

resolved by a panel composed of Michael Ryan, Ed Knight and the Special

Technology Consultant; the decision of such panel to be final and binding; and

(ii) Nasdaq and Amex shall have no obligation to follow the Dispute resolution

procedures set out in the Master Agreement with respect to a claim that the

Amex Replacement System described in Section 1.1(b) infringes Nasdaq’s patent

rights beyond the scope of Nasdaq’s agreement not to sue for such infringement.

 

SECTION

13.             LITIGATION.  A Party shall give prompt written notice to

the other Parties if it knows of any pending or threatened actions, suits or

proceedings or of facts which would lead a reasonable person to believe that it

would give rise to such threats, with respect to the notifying Party that have,

or are reasonably likely to have:   (i)

a material and adverse affect on the Transition or on the rights or remedies of

either of the other Parties or on the ability of the notifying Party to perform

its obligations hereunder; or (ii) a Material Adverse Effect.  The existence of any of the above may be

treated as a Dispute by the other Party.

 

22

 

SECTION

14.             MISCELLANEOUS

MATTERS.  The Parties

will be subject to Article 14, Miscellaneous, of the Master Agreement.

 

SECTION

15.             DEFINITIONS.  To the extent a defined term is used in this

Agreement and the definition is not set forth herein, the definitions in

Article 1, Definition and Construction, of the Master Agreement shall be

applicable.

 

“Change of

Control” of Amex shall mean (i) Amex selling substantially all of its Assets,

(ii) a Person acquiring Control of Amex after Amex’s spin-off from the NASD

Family, or (iii) Amex undergoing a merger, being acquired or undertaking an

acquisition or being involved in a substantially similar transaction.  Amex’s spin-off from the NASD Family will

not be considered a Change of Control.

 

“Critical

Milestone Dates” shall have the meaning provided in Section 3.2.

 

“Day” means a

calendar day.

 

“Derivative Work”

shall have the meaning specified in 17 U.S.C. § 101.

 

“Documentation”

shall mean all written material related to the referenced Software or System to

the extent that the material permits a Party to use the Software or System in

the manner permitted in this Agreement.

 

“Fully-Loaded

Costs” shall mean (a) direct costs (for example, cost of obtaining required

hardware and software; cost of employees including, but, not limited to,

benefits, salary, recruiting; cost of consultants; travel, meetings, training;

any applicable taxes; and other direct cost categories included as permitted

under this Agreement), and (b) administrative overhead of *****  % based on (a) direct

costs. It is the intention of the Parties that the Fully-Loaded Costs and the

Self-Sufficiency Costs include similar cost categories, regardless of whether

the same categories are specifically referenced in Exhibits B or C or in the

definition of Fully-Loaded Costs.  For

illustration purposes, attached hereto and incorporated herein as Exhibit C, is

a list of categories comprising Nasdaq’s Fully Loaded Costs for its ISS and MDS

Systems.

 

“Intellectual

Property” shall mean domestic and foreign patents, patent applications,

registered and unregistered trade marks and service marks, registered and

unregistered copyrights, trade names, computer programs, data bases, trade

secrets, proprietary information and include all rights in information created

under laws governing patents, copyrights, mask works, trade secrets,

trademarks, publicity rights, or any other law that permits a person,

independently of contract, to control or preclude another person’s use of the

information on the basis of the rights holder’s interest in the information.

 

*****  Confidential Treatment has been requested

for the redacted portions.  The

confidential redacted portions have been filed separately with the Securities

and Exchange Commission.

 

23

 

“Milestone Dates”

shall have the meaning provided in Section 3.2.

 

“Nasdaq

Technology” shall have the meaning provided in 

Section

1.1.

 

“Nasdaq Family”

shall mean Nasdaq and its Affiliates, collectively.

 

“NASD Family”

shall mean NASD and its Affiliates, collectively.

 

“Parties” shall have

the meaning provided in the first paragraph hereof.

 

“Person” shall

mean a natural person, corporation, partnership, limited liability company,

association or other governmental or non-governmental entity.

 

“SEC” shall have

the meaning provided in the first paragraph hereof.

 

“Software” shall

mean the set of programs (object, and if so noted in the Agreement, source

programs) to be provided hereunder.

 

“Technology

Steering Committee” shall have the meaning provided in Section 2.1.

 

“Transition Plan”

shall have the meaning provided in Section 3.1.

 

24

 

IN WITNESS WHEREOF, the Parties agree to be bound by

the foregoing.

 

	

  The American Stock

  Exchange, LLC

  	

   

  
	

   

  	

   

  	

   

  
	

  By: 

  	

  /s/ Salvatore F. Sodano

  	

   

  
	

  Name:  Salvatore F. Sodano

  	

   

  
	

   

  	

   

  
	

  Title:  CHAIRMAN AND CHIEF EXECUTIVE OFFICER

  	

   

  
	

  Authorized Officer

  	

   

  
	

  Date: 1/31/02

  	

   

  
	

   

  	

   

  
	

  The Nasdaq Stock

  Market, Inc.

  	

   

  
	

   

  	

   

  	

   

  
	

  By: 

  	

  /s/ Richard G. Ketchum

  	

   

  
	

  Name: Richard G.

  Ketchum

  	

   

  
	

   

  	

   

  
	

  Title: President

  	

   

  
	

  Authorized Officer

  	

   

  
	

  Date:1/31/02

  	

   

  
	

   

  	

   

  
	

  National Association of

  Securities Dealers, Inc.

  	

   

  
	

   

  	

   

  
	

  By: 

  	

  /s/ Robert R. Glauber

  	

   

  
	

  Name: Robert R. Glauber

  	

   

  
	

   

  	

   

  
	

  Title: Chairman and

  Chief Executive Officer

  	

   

  
	

  Authorized Officer

  	

   

  
	

  Date: 2/11/02

  	

   

  
					

 

25

 

Exhibit A 

 

Anyone with knowledge of the design of  ISS System (Concept through

Implementation phases)

 

*****

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

26

 

Exhibit B

 

SELF SUFFICIENCY

COSTS

 

Permitted Direct Self-Sufficiency Costs:

 

1.  Staff /

Consultants - Benefits, salaries, recruiting expenses, and other

costs of the full time employees or consultant equivalents required to either

build replacement systems or separate Amex from Nasdaq Technology, pursuant to

the Agreement (i.e. separating Amex in the case of Siebel or building the new

data warehouse) (based on the percentage of time that they work on the building

or separation). This will generally cover software development efforts,

including installing cabling, configuration work, and similar efforts (but not

on-going operations support)   and QC

support required to transition the new systems.  This includes Amex, and Nasdaq to the extent Nasdaq is supporting

Amex in building the new systems or in separating from Nasdaq Technology.

 

2.  Premises –

Temporary space (reasonably necessary at a cost of no more than Amex’s average

occupancy rate at 65 Broadway, New York, New York, unless Amex obtains the

prior approval of the Special Technology Consultant for such higher cost),

supplies, postage, provisioning, and any other operating expenses for the

staff/consultants referenced in Section 1 above (based on the percentage of

time that they work on building new systems or separating Amex from

Nasdaq).  This includes both Amex and

Nasdaq to the extent Nasdaq is supporting Amex in building the new systems or

in separating from Nasdaq Technology .

 

3.  Network / Communications – Purchase and installation (not

ongoing costs) of new network and communications infrastructures and lines

required to establish links between the respective new systems and/or web

sites.  This includes Amex and Nasdaq to

the extent Nasdaq is supporting Amex in separating from Nasdaq Technology.

 

4.  Hardware -Capital costs associated with first time hardware

purchases for development/QA/training/production.  Costs related to capacity growth, both organic and new, are not

permitted and depreciation for these hardware purchases cannot be charged in

addition to the capital costs.  It is

expected that there will be some consulting support required for the hardware

installations.  This includes Amex and

Nasdaq to the extent Nasdaq is supporting Amex in separating from Nasdaq

Technology.

 

5.  Travel & Training - All associated with the

implementation of the new systems, for both Nasdaq and Amex

 

Permitted Indirect

Self-Sufficiency Costs:

 

1.  Management Overhead -  Project Management for the specific project

implementations ie. Siebel, MDS, ISS, .COMS 

at a rate of *****  of  Permitted Direct Self-Sufficiency Costs,

with

 

*****  Confidential Treatment has been requested

for the redacted portions.  The

confidential redacted portions have been filed separately with the Securities

and Exchange Commission.

 

27

 

the exception of

capital costs where the *****  will

only be on the amount depreciated by a Party in that year.

 

2.  Outside

Legal Expenses:  Outside

legal expenses associated with contract reviews for new vendors (hardware,

software and contractors) of Amex and of Nasdaq to the extent Nasdaq is

supporting Amex in separating from Nasdaq Technology.  The Parties anticipate that such expenses will only be

reimbursable from the Fund in extraordinary circumstances where the subject

matter of the contract (or part thereof) is outside the reasonable expertise of

the applicable Party’s in-house legal department and the reimbursement of such

costs must be pre-approved by the TSC Co-Chairs.

 

The

Permitted Costs listed above are the costs to be reimbursed from the  Fund. 

Below are examples of things not chargeable against the Fund:

 

Non-Permitted

Costs: 

 

•  Base operating,

maintenance or enhancement costs for Nasdaq Technology provided by Nasdaq

 

•  The Special

Technology Consultant

 

•  Transaction PMO

function (****)

 

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

28

 

Exhibit C

 

ISS & MDS

 

*****

 

*****  Confidential Treatment has been requested for the redacted

portions.  The confidential redacted

portions have been filed separately with the Securities and Exchange

Commission.

 

29

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