Document:

Q312 Exhibit 10.5

Exhibit 10.5

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

Second Amended UltraDirect Services Schedule

THIS SECOND AMENDED ULTRADIRECT SERVICES SCHEDULE SUPERCEDES AND REPLACES THE ULTRADIRECT SERVICES SCHEDULE BETWEEN PEGASUS AND ORBITZ WORLDWIDE, LLC DATED AUGUST 8, 2007.

This Second Amended UltraDirect Services Schedule is attached to and a part of the Master Services Agreement with the Effective Date of August 8, 2007, by and between Pegasus Solutions, Inc. ("Pegasus") and Orbitz Worldwide, LLC ("Customer").

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

(a)        Second Amended UltraDirect Services Schedule Effective Date means July 1, 2012

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

(c)        Customer's  System means an electronic system operated by or on behalf of Customer that displays and transmits Reservations Data.

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

(e)        Fees  means  those  fees  set  forth  in  paragraphs  2,  3  and  4  of  the  UltraDirect   Pricing
Schedule to this Agreement.

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

(g)        Hotel Content Database means a digital database created and maintained by or for Pegasus that contains lodging data and descriptive content (including text, image and rich media), and any updates thereto made available to Customer by Pegasus.

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

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

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

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(k)        Mapping means functionality allowing an accessor of Customer's System(s) to (i) request and view a map image, and (ii) make subsequent requests to (1) zoom in, (2) zoom out, (3) move up, (4) move down, (5) move right, or (6) move left while viewing the response to a map request.

(I)         Monitoring Application means an automated monitoring application employed by Pegasus that generates test messages, causes such messages to be transmitted throughout the technology infrastructure used by Pegasus to deliver the Services and records the results of each transmission for later analysis.
(m)      Multi-Property Availability Request means a single request message for rates and availability relating to two or more lodging properties that is transmitted through the UltraDirect Interface pursuant to this First Amended UltraDirect Services Schedule.

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

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

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

(q)       Pegasus  Rate Cache means a Pegasus database that temporarily stores rate and availability information previously processed by UltraSwitch on behalf of hotels and made available for use by third party distributors.

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

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

(u)        Reservation  Function  means Pegasus-provided functionality  that is  accessed by  Customer through the UltraDirect Interface and that transmits Reservations Data between reservation systems used by lodging establishments and other systems.

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

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

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

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

(z)        UltraDirect Interface  means an interface  between: (i)  Customer's System and (ii)  the Hotel
Content Database and the Pegasus system(s) performing the Reservation Function.

(aa)      UltraDirect  Services  means  the services described  in  paragraph  2  of  this  Second  Amended UltraDirect Services Schedule.

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2.    UltraDirect Services.  Pegasus agrees to:

(a) provide Customer with specifications for Customer's use in creating and implementing the UltraDirect
Interface;

(b) grant Customer's System access to the Hotel Content Database and the Reservation Function through the UltraDirect Interface created, implemented and maintained  by Customer in conformity with such specifications, for the purpose of permitting accessors of Customer's System to view data residing in the Hotel Content Database and to transmit and view Reservations Data;

(c) use commercially reasonable efforts to support Customer's implementation and maintenance of the
UltraDirect Interface; and

(d) permit Customer to retain a copy of the information obtained from the Hotel Content Database on Customer's System(s) provided Customer performs, on a daily basis, an update to Customer's System(s) of any information in the Hotel Content Database that has been modified since the last update was made available to Customer by Pegasus.

3.     Customer's Duties.

(a) General.   The parties agree that as of the Second Amended UltraDirect Services Schedule Effective Date, the UltraDirect  Interface has been created and implemented between Pegasus and Customer. Customer shall:

		
	(i) 
	diligently  maintain  the  UltraDirect  Interface in  accordance  with  this  Second Amended UltraDirect Services Schedule;

		
	(ii) 
	be solely responsible for the creation of all necessary URL links from Customer's System to the Hotel Content Database and the Reservation Function; and

		
	(iii) 
	except  as  expressly permitted under  this  Agreement, not  permit  the  Hotel Content Database,  the   Reservation  Function  or   the   UltraDirect   Interface  to   be  copied, downloaded, hyperlinked or in any manner used or redistributed in whole or in part except as expressly permitted by this Agreement.

(b)        Onward Distribution.   Customer is generally prohibited from permitting any third party, other than end-user consumers who access Customer's System(s), access to or use of information contained in  the Hotel Content Database, or use  of other data transmitted through  the UltraDirect  Interface. However, Customer may permit Onward Distributors access to and use of information contained in the Hotel Content Database, and use and access to other data transmitted through the UltraDirect Interface, subject to Pegasus' right to prohibit such access and use by any Onward Distributor, provided that:

(i)          prior to permitting such access and use by an Onward Distributor, Customer provides written notice to such Onward Distributor stating that (A) such data and the systems transmitting the same are the sole and exclusive property of Pegasus (which may be identified in Customer's written  notice  to Onward Distributors generically as a "third party service provider" or  similar designation), its licensors and/or the lodging establishments whose information appears  in the Hotel Content Database; and (B) no right, title or interest of any kind in such systems or data is granted by Pegasus to such Onward Distributor by virtue of its access to and use of such data-;

(ii)        any access to or use of the information contained in the Hotel Content Database by any Onward Distributor (as permitted by Pegasus hereunder) shall not be subject to any additional Hotel Content license fee charged by Customer.;

(iii)        upon the request of Pegasus, Customer will provide Pegasus confirmation as to whether a particular, named party is an Onward Distributor;

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(iv)        Customer, upon 30 days prior written notice from Pegasus, terminates such access and use by any Onward Distributor that (A) displays Offensive Content on any electronic system maintained and hosted by or on behalf of such Onward Distributor, (B)  transmits Prohibited Requests or (C) violates the requirements set forth in paragraph 4(e) below; and

(v)     in consideration of Pegasus' agreement to permit Onward Distributors access to and use of  data transmitted through the UltraDirect  Interface,  Customer  hereby agrees to  indemnify, defend and hold harmless Pegasus, its directors, officers, employees, agents, successors and assigns, from and against any and all liability and every loss, cost, damage, claim, cause of action and expense (including reasonable attorneys' fees) paid or incurred by any one or more of them directly or indirectly arising from or attributable to such access or use by any Onward Distributor or a user of any Onward Distributor.

(c)     Bursting; Look to Book Ratio.

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

(ii)         Excess Ratio.   If  the Look to Book Ratio exceeds (***):1  with respect to a calendar month then Pegasus shall not be obligated to transmit Customer Reservations Data during the calendar month immediately following such month to any central reservation system to which the operator of such system has requested that Customer Reservations Data not be transmitted, provided, however, that Pegasus promptly notifies Customer of such request. For the avoidance of doubt, Customer shall be entitled to pre-fetch up to 3 million shops per day, during off-hours, which shall not be included or counted in any Look to Book Ratio calculation. 

(iii)        Notwithstanding the foregoing, or anything to the contrary set forth in this Agreement, in the event that (i) Customer's Look to Book Ratio exceeds (***):1, and (ii) Pegasus reasonably concludes that Customer's Look to Book Ratio poses an imminent material threat to the Reservation Function by materially inhibiting, disrupting or otherwise causing performance degradation, of the Reservation Function or otherwise causing a performance degradation to any of Pegasus' facilities used to deliver the UltraDirect Services, Pegasus may immediately suspend its performance of the UltraDirect Services, solely to the extent necessary to reduce the imminent material threat and with such suspension of the UltraDirect Services to cease once the imminent material threat has been addressed.

4.           Use of Content.

(a)        Subject to the terms and conditions of this Agreement, Pegasus hereby grants to Customer a non-exclusive, worldwide license during the term of this UltraDirect Services Schedule to publicly display and transmit Hotel Content Database content to an end user for the purpose of generating Reservations Data to be transmitted through the Reservation Function.

(b)        Subject to the terms and conditions of this Agreement, Pegasus hereby grants to Customer a non-exclusive, worldwide license during the term of this UltraDirect Services Schedule to distribute Hotel Content Database content to (i) its Affiliates, (ii) Onward Distributors in accordance with Section 3(b), and (iii) any other entity to which Pegasus consents in writing.

(c)        Subject to the terms and conditions of this Agreement, Pegasus hereby grants to Customer a non-exclusive, worldwide license during the term of this UltraDirect Services Schedule to reproduce, edit, promote, and create derivative works of the content from the Hotel Content Database provided  such activity and use is limited to Customer and Affiliates. Customer may combine such information and data with Customer's own content.

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(d)        Pegasus acknowledges and agrees  that  it  will  not  obtain  any  right, title  or  interest  in  the
Reservations Data.

(e) Pegasus shall provide Customer with the Hotel Content Database content translated into language other than English where Pegasus has such translations available.

5.        Offensive  Content.    Pegasus may  immediately terminate the  prov1s1on  of  UltraDirect  Services  to Customer for any period of time during which Customer's System, or any electronic system maintained and hosted by or on behalf of an Onward Distributor with access to and use of data transmitted through the UltraDirect Interface, displays  any  Offensive  Content.    Notwithstanding the  foregoing,  before  Pegasus  exercises  its termination right set forth in the preceding sentence, Pegasus shall first afford Customer the opportunity to remove such Offensive Content within twenty-four (24) hours after receiving written notice from Pegasus.

6.        Data Transmission.  The transmission of data between Customer's System and the UltraDirect Interface shall occur by such means as are mutually agreed by Customer and Pegasus.

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

8.     Downtime.

(a)       Downtime Service Level.   Downtime during each calendar month as a percentage of all time during such calendar month will not exceed three-tenths percent (0.3%)  ("Downtime Commitment"). Customer's sole and exclusive remedy if Downtime exceeds the Downtime Commitment is set out in Section4 of the Pricing Schedule.

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

(c)        Loss  of  Negotiated  Rate  Functionality: For  purposes  of  this  subparagraph 8(c), Loss  of negotiated rate functionality ("LONRF) is the amount of time during with the negotiated rate functionality is not available excluding any Downtime exclusions as defined in subparagraph 8d below.

If a LONRF event occurs, Pegasus will, as Customer's sole and exclusive remedy for such event, credit against the amounts due from Customer to Pegasus with respect to the next calendar month a fee calculated in accordance with the following formula:

[((#of minutes with loss of functionality) I(# of minutes in the month)) * (#of  UltraDirect Net
Reservations)] * [$(***)]

For example, if the LONRF event is for one full hour and Customer processes 150,000 UltraDirect Net Reservations in the month when the LONRF event occurred, Pegasus would provide a credit to Customer of $(***).

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(((60) I (44640)) * (150,000)) * ($(***)) = $(***)

(d)       Downtime  Exclusions.    Downtime shall not include any  time during  which the Reservation
Function is not Available due to:
		
	(i)
	up to four (4) hours of Scheduled Downtime per calendar month

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

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

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

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

		
	(vi)
	one or more of the causes listed in Section 7.2 of the Master Services Agreement.

		
	(vii)
	Pegasus  will not pay for Downtime and loss of functionality  at the same time - either  or depending  on the  root cause  analysis  of the outage or loss  of  negotiated  rate functionality  as determined by both parties.

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

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

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

9.     Use of Pegasus Rate Cache. Customer shall not be required to hit the Pegasus Rate Cache for rate or availability information unless the parties so agree in writing.

10.     Issue Resolution.

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

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	Severity Level
	Description

	1
Emergency
	Reservation Function not Available (other than during Scheduled Downtime); or severe impact to Customer business operations; or potential for significant Customer loss of revenue

	2
High
	Significant impact to Customer business operations; or significant impact to Customer's use of the Reservation Function and absence of a work-around

	3
Medium
	Significant impact to Customer's use of the Reservation Function but a work- around exists

	4
Low
	Any Issue that is not appropriately classified as Severity 1, 2 or 3

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

	
			
	Severity Level
	Communication
	Resolution or Mitigation

	1
Emergency
	Pegasus will contact Customer within thirty (30) minutes of receiving the initial report of the Issue, and will update Customer every thirty (30) minutes thereafter until the Issue is resolved.
	Pegasus commits to resolve the Issue or implement a work-around for the Issue that effectively mitigates the effects of the Issue within two (2) hours of Pegasus' receipt of the initial report of such Issue.

Within 48 hours of resolution, Pegasus will deliver to Customer a written analysis detailing the causes of the Issue.

	2
High
	Pegasus will contact Customer within sixty (60) minutes of receiving the initial report of the Issue, and will update Customer every sixty (60) minutes until the Issue is resolved.
	Pegasus commits to resolve the Issue or implement a work-around for the Issue that effectively mitigates the effects of the Issue within six (6) hours of Pegasus' receipt of the initial report of such Issue.

Within 48 hours of resolution, Pegasus will deliver to Customer a written analysis detailing the causes of the Issue.

	3
Medium
	Pegasus will contact Customer: (i) on the same business day if the initial report is received during normal business hours and Pegasus is able to respond on the same business day or (ii) the next business day of receiving the initial report of the Issue if Pegasus is unable to resolve on the same business day. Pegasus will update Customer daily thereafter until the Issue is resolved.
	Pegasus commits to resolve the Issue or implement a work-around for the Issue that effectively mitigates the effects of the Issue within 48 hours of Pegasus' receipt of the initial report of such Issue.

	4
Low
	Pegasus will contact Customer within three (3) business days of receiving the initial report of the Issue.

	Pegasus will resolve the Issue or implement a work-around for the Issue that effectively mitigates the effects of the Issue within 48 hours  of Pegasus' receipt of the initial report of such issue.

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

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hours to assist Pegasus so that Pegasus can promptly research and resolve or mitigate the Issue, as applicable

11.    Time Period Targets.

(a)       Implementation.  Pegasus and Customer will each use commercially reasonable efforts to implement the UltraDirect Services for any Affiliates of Customer that wish to receive  the Services hereunder within ninety (90) business days of the Second Amended UltraDirect Services Schedule Effective Date, subject to the provisions of the governing plan and schedule of implementation and to the performance of all necessary actions by any third party.

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

12.     Term.  This UltraDirect Services Schedule shall be effective as of the Second Amended UltraDirect  Services Schedule  Effective  Date and shall continue  in effect for an initial term of two (2) years  from  such date unless  terminated  earlier  as provided  in the  Agreement.   The  term  of  this Second Amended  UltraDirect Services  Schedule  shall thereafter  automatically  renew for additional,  successive  180 (180) day  terms unless either party provides written notice to the other party of its intent to terminate this Second Amended UltraDirect Services Schedule at least ninety (90) days prior to the expiration of the then-current term.

	
					
	PEGASUS SOLUTIONS, INC.
	 
	ORBITZ WORLDWIDE, LLC

	 
	 
	 
	 
	 

	By: 
	/s/ Chris Wichers
	 
	By: 
	/s/ Peggy Bianco

	Name:
	Chris Wichers
	 
	Name:
	Peggy Bianco

	Title:
	Chief Sales Officer
	 
	Title:
	GVP, Global Hotel Services

	Date:
	July 26, 2012
	 
	Date:
	30 July 2012

	 
	 
	 
	 
	 

8Q312 Exhibit 10.6

Exhibit 10.6

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

Second Amended Pricing Schedule (UltraDirect)

NOTE: THIS SECOND AMENDED PRICING SCHEDULE SUPERCEDES AND REPLACES THE FIRST AMENDED PRICING SCHEDULE BETWEEN PEGASUS AND ORBITZ WORLDWIDE, LLC DATED APRIL 1, 2010.

This Second Amended Pricing Schedule is attached to and a part of the Master Services Agreement with the Effective Date of August 8th, 2007, by and between Pegasus Solutions, Inc. ("Pegasus") and Orbitz Worldwide, LLC ("Customer").

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

		
	(a)
	Second Amended Pricing Schedule Effective Date means July 1, 2012.

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

(c)Measured Downtime means the actual measured Downtime (as defined in the UltraDirect Services Schedule) in any calendar month.

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

(a)       Transaction Fee.  Customer shall pay to Pegasus a fee with respect to each calendar month that is equal to the difference between:

(i)  the product of (a) aggregate number of UltraDirect Shopping Requests (request counts not to include up to 3 million per day off-hours pre-fetch shop requests) during the calendar month multiplied by (b) the fee amount of $(***); and

(ii)  The product of: (c) aggregate number of UltraDirect Net Reservations during the calendar month multiplied by (d) $(***).

If the differential amount after applying the calculation above is less than or equal to $0.00, then no transaction fee is payable by Customer to Pegasus for the given calendar month.

(b)  UltraDirect Net Reservation Fee.   Pegasus shall pay a Net Reservation Fee to Customer for each Net Reservation processed during that calendar month as follows:

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	Year 1
	Month
	Net Reservation
	Fee for each Net Reservation
(pricing starts from first Net
Reservation)

	Tier 1
	July
	128,000
	$(***)

	 
	August
	121,000
	$(***)

	 
	September
	112,000
	$(***)

	 
	October
	108,000
	$(***)

	 
	November
	104,000
	$(***)

	 
	December
	99,000
	$(***)

	 
	January
	96,000
	$(***)

	 
	February
	102,000
	$(***)

	 
	March
	119,000
	$(***)

	 
	April
	105,000
	$(***)

	 
	May
	108,000
	$(***)

	 
	June
	116,000
	$(***)

	 
	 
	 
	 

	Tier 2
	By month
	25% increase over Tier 1
	$(***)

	Tier 3
	By month
	50% increase over Tier 1
	$(***)

	

Year 2 
5% increase
	 
	 
	 

	 
	July
	134,400
	$(***)

	 
	August
	127,050
	$(***)

	 
	September
	117,600
	$(***)

	 
	October
	113,400
	$(***)

	 
	November
	109,200
	$(***)

	 
	December
	103,950
	$(***)

	 
	January
	100,800
	$(***)

	 
	February
	107,100
	$(***)

	 
	March
	124,950
	$(***)

	 
	April
	110,250
	$(***)

	 
	May
	113,400
	$(***)

	 
	June
	121,800
	$(***)

	 
	 
	 
	 

	Tier 2
	By month
	25% increase over Tier 1
	$(***)

	Tier 3
	By month
	50% increase over Tier 1
	$(***)

For the avoidance of doubt, the Tier 2 Fee will be due if there is an increase in the monthly transaction amount of 25% or more and Tier 3 Fees will be due if there is an increase the monthly transaction amount of 50% or more.  

By way of example: 

Year 1

 Tier 1: July - 128,000 X 0.25 = 160,000, will result in a $(***) rebate (Tier 2).

2

 Tier 1: July - 128,000 X 0.50 = 192,000, will result in a $(***) rebate (Tier 3).

Year 2

             Tier 1: July - 134,400 X 0.25 = 168, 00, will result in a $(***) rebate (Tier 2)
Tier 1: July - 134,400 X 0.50 - 201,600, will result in a $(***) rebate (Tier 3)

Customer will not receive any UltraDirect Net Reservation Fees during any month that customer fails to achieve Tier 1 Net Reservation levels.

3.     Hotel Content Database Usage Fee.   Customer shall pay to Pegasus a monthly fee as follows:

	
		
	Monthly Reservations Target:
	Hotel Content Download Fee Per Month

	<Tier 1
	$(***) per month

	>Tier 1 < Tier 2
	$(***) per month

	>Tier 2 and <Tier 3
	$(***) per month

	> Tier 3
	$(***) per month

4.     Service Level Credit/Incentive.

(a)  If Measured Downtime is below the Downtime Commitment (as defined in Section 8(a) of the UltraDirect Services Schedule), Customer will pay Pegasus a fee ("Service Level Incentive Fee") equal to the product of (i) the quotient (rounded down to the nearest integer) of (A) Downtime Commitment minus (B) Measured Downtime; divided by (C) (***)%; multiplied by (ii) the product of
$(***) times UltraDirect Net Reservations attributable to that calendar month. [(Downtime Commitment - Measure Downtime)/ (***)%)   X ($(***)   X   UltraDirect Net Reservations)]. Notwithstanding the foregoing, if the Measured Downtime exceeds 0.10%, Pegasus will not be entitled to a Service Level Incentive Fee.

(b)  If Measured Downtime exceeds the Downtime Commitment, Pegasus will pay Customer a fee
("Service Level Credit Fee") equal to the lesser of:

		
	i. 
	The product of (i) (A) Measured Downtime minus (B) Downtime Commitment; divided by (C)  (***)%; multiplied by (ii) the product of $(***)    times UltraDirect Net Reservations attributable    to    that     calendar     month    [(Measured     Downtime  Downtime Commitment)/ (***)%) X ($(***) X UltraDirect Net Reservations)]; OR

		
	ii. 
	The product of (i) $(***) times (ii) UltraDirect Net Reservations attributable to that calendar month/ [$(***) X UltraDirect Net Reservations].

In the event the Pegasus owes Customer a Service Level Credit Fee, Pegasus will provide an estimate of the Fee by the seventh day of the month following the month in which the Service Level Credit Fee was incurred. Furthermore, Pegasus shall provide customer with monthly outage reports and corresponding Service Level Credit Fees information for which Customer is eligible. In  the  event  Customer  owes  Pegasus  any  amounts  under  this  Agreement,  Pegasus  will offset/credit the Service Level Credit Fee specified above payable by Pegasus against any such amounts owed to Pegasus by Customer, provided that Pegasus provides Customer a report showing complete and accurate details and calculation of the amounts payable by Pegasus and the amounts being offset hereunder.

5.     Geo Search and Geo Search Map Fees.

(a)       Annual  License Fee.    If  during any calendar year Customer utilizes the Geo Search or Mapping functionality or an accessor of Customer's System(s) transmits a Geo Search or Mapping request, Customer shall pay to Pegasus an amount equal to any license fees charged to Pegasus for such utilization or transmission with respect to such calendar year by the third party vendor of such functionality.

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

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

(d)       Definitions.    For purposes of this paragraph, "Geo Search", "Mapping" and "Customer's System(s)" have the meanings set forth in the UltraDirect Services Schedule.

6.          Professional Services Fees.    Customer shall pay fees to Pegasus for Pegasus' performance of professional services at Pegasus' then-standard hourly rate for such technical and/or professional services (not to exceed $(***) per hour) as specified in the work order, statement of work or similar document executed by Pegasus and Customer regarding the professional services performed.

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

8.     (***).

9.       Assumptions.     The parties acknowledge that the commercial terms of this Second Amended Pricing Schedule were negotiated based on Customer's distribution mix as of the Second Amended Pricing Schedule Effective Date.    In the event the distribution mix materially changes, the parties agree to conduct good faith negotiations for new commercial terms.

	
					
	PEGASUS SOLUTIONS, INC.
	 
	ORBITZ WORLDWIDE, LLC

	 
	 
	 
	 
	 

	By: 
	/s/ Chris Wichers
	 
	By: 
	/s/ Peggy Bianco

	Name:
	Chris Wichers
	 
	Name:
	Peggy Bianco

	Title:
	Chief Sales Officer
	 
	Title:
	GVP, Global Hotel Services

	Date:
	July 26, 2012
	 
	Date:
	30 July 2012

	 
	 
	 
	 
	 

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