Document:

ex10-45

 

EXHIBIT 10.45

DATED as of 31 January 2002

(1) HUTCHISON WHAMPOA 3G IP S.A.R.L.

(2) TELECOMMUNICATION SYSTEMS INC.

____________________________________

SERVICES INTEGRATION AGREEMENT

____________________________________

Baker & McKenzie

100 New Bridge Street

London

EC4V 6JA

Tel: 020 7919 1000

Fax: 020 7919 1999

Ref: HRS/RJH/PLG

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

THIS AGREEMENT is made on the        day of January 2002 (“Agreement”)

BETWEEN

	 	 	 
	(1)	 	
HUTCHISON WHAMPOA 3G IP S.A.R.L. a company incorporated under Luxembourg
law having its registered office at l-1728 Luxembourg, 7, rue du Marche
aux Herbes, Luxembourg (“H3G”); and 
 
	(2)	 	
TELECOMMUNICATION SYSTEMS INC. a Maryland corporation having its
principal place of business at 275 West Street, Annapolis, Maryland, 21401
(“TCS”); each a “Party”, together referred to as the “Parties”

WHEREAS

	 	 	 
	(A)	 	
Hutchison 3G UK Limited issued a Request for Quotation (the “Initial
RFQ”) entitled “Request for Quotation for Location Services (LCS) System”
dated 17 August 2001 and a further Request for Quotation entitled “H3G
Technical and Functional Requirements for the Location Server XLP” and
dated October 18, 2001 (the “Second RFQ”) for the design, development,
integration, implementation and support of the Location Server System (as
such term is defined in Clause 1.1) (the Initial RFQ and the Second RFQ
being together the “RFQ”) which is attached to this Agreement as Schedule
6;
 
	(B)	 	
In response to the RFQ, TCS issued a Response to RFQ dated 25th October
2001 and comprising the documents set out in Schedule 7 (the “Response”);
 
	(C)	 	
A series of workshops were held between TCS and H3G to confirm the
technical and functional requirements of the Location Server System and to
define the required interfaces (which were documented in the Interface
Control Documents). As a result of the workshops, the parties agreed the
baseline functional requirement for the Location Server System and set
this out in the document entitled “H3G Technical and Functional
Requirement for the Location Server XLP, Revision 1.0 (“Technical and
Functional Requirements Document”) dated 12th January 2002. The Technical
and Functional Requirements Documents together with the Interface Control
Documents form the Functional Specification;
 
	(D)	 	
In reliance on the statements made by TCS in the Response and in reliance
on TCS’s skill, knowledge and experience, including but not limited to the
experience and track record of TCS in the IT, computing and software
industries, H3G has decided to engage TCS to provide the Services (as such
term is defined in Clause 1.1);
 
	(E)	 	
It is the intention of the Parties that, once the Location Server System
has been accepted by H3G, the Initial H3G Affiliates will implement the
Location Server System. In the event that an H3G Affiliate wishes to
commission additions to the Location Server System which are not relevant
for other H3G Affiliates then TCS shall enter into a Local Work Package
(as defined below) with such H3G Affiliate to do so; and

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	(F)	 	
The Parties have agreed the technical and functional requirements for the
standard or core version of the Location Server System and have set out
these requirements in the Initial Global Work Package which is set out in
Schedule 13.

IT IS AGREED:

	 	 	 
	1	 	
Interpretation
 
	1.1	 	
In this Agreement the following words and expressions shall have the
following meanings except where the context otherwise requires:
 
	 	 	
“Acceptance” means in relation to the Location Server System or any
constituent part thereof, the point in time at which the relevant
Acceptance Tests have been successfully completed in accordance with the
provisions of Clause 13, Schedule 9 and the Work Package in question;
 
	 	 	
“Acceptance Criteria” means, in relation to the Services and the
Deliverables, the criteria set out in the Acceptance Test Plan as being
the standards which must be met prior to Acceptance or as otherwise
determined in accordance with Clause 13;
 
	 	 	
“Acceptance Tests” means acceptance tests using H3G’s data to verify
whether the Acceptance Criteria have been met, as set out in the
Acceptance Test Plan or as otherwise determined in accordance with Clause
13 and Schedule 9, to be carried out by H3G with the co-operation of TCS;
 
	 	 	
“Acceptance Test Plan” means any plan for the Acceptance Tests prepared
by TCS and agreed to in writing by H3G in accordance with the Work
Package, Clause 13 and Schedule 9;
 
	 	 	
“Affiliate” means, in relation to TCS, any company which from time to
time during the period of this Agreement is a holding company or
subsidiary of TCS or a subsidiary of TCS’s holding company, as the terms
‘holding company’ and ‘subsidiary’ are defined in Sections 736 and 736A
of the Companies Act 1985 and, in relation to H3G, means either:

	 	 	 
	(a)	 	
any company or entity which from time to time is controlled
directly or indirectly by HWL, or any successor or assignee company
of HWL (where “control” or “controlled” has the meaning given to it
in section 574(2) of the Capital Allowances Act 2001); or
 
	(b)	 	
any company or entity in which from time to time HWL (or any
successor or assignee company of HWL) holds directly or indirectly
15% or more of the shares or voting power; or
 
	(c)	 	
the companies or entities listed in Schedule 5 (List of H3G
Affiliates) as this may be amended by H3G from time to time by
notice in writing to TCS;

	 	 	 
		 	
“Agreed Expenses” means any actual, reasonably incurred travel and living
expenses incurred by TCS in the provision of the Services;

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
		 	
“Agreed Rate” means the agreed blended per diem rate of [*] for work
undertaken by TCS under Local Work Packages;
 
	 	 	
“Business Day” means any day (other than a Saturday or Sunday) on which
the banks are ordinarily open for business in the country in which the
Services are being provided in the case of a Local Work Package or in
England in the case of a Global Work Package;
 
	 	 	
“Change” means any change to a Work Package (or any part thereof) which
is authorised following agreement reached between the Parties in writing
in accordance with the Change Control Procedure;
 
	 	 	
“Change Control Procedure” means the procedure set out in Clause 17 and
in Schedule 1;
 
	 	 	
“Charges” means the payments to be made by H3G or an H3G Affiliate to TCS
(including, without limitation, the Data Centre Installation Fixed Fee,
the Pre-Production Installation Fixed Fee and the Test Network
Installation Fixed Fee) as set out in the relevant Work Package and in
accordance with Schedule 10;
 
	 	 	
“Commencement Date” means the date of this Agreement;
 
	 	 	
“Commercial Production” means processing of the first transaction by the
Location Server System for a Subscriber who is invoiced for services by
H3G or an H3G Affiliate where “Subscriber” means a subscriber represented
by USIM cards which are registered on the networks of H3G or any H3G
Affiliates which have accepted the Location Server System into live
production and which have generated revenue for H3G
[*] as notified by H3G to TCS, which
notification shall be final and conclusive, in the absence of manifest
error;
 
	 	 	
“Confidential Information” means secret or confidential commercial,
financial, marketing, technical or other information (including, without
limitation, information on or relating to H3G or any H3G Affiliate’s
business and/or customers and the terms of this Agreement), know-how,
trade secrets and other information in any form or medium whether
disclosed orally or in writing before or after the date of this
Agreement, together with any reproductions of such information in any
form or medium or any part of this information (and “confidential” means
that the information, either in its entirety or in the precise
configuration or assembly of its components, is not publicly available);
 
	 	 	
“Customised Software Developments” means the computer programs to be
developed specifically for H3G by TCS under the terms of this Agreement
and the relevant Work Package in both source and object code together
with any accompanying documentation;
 
	 	 	
“Currency Compliant” means in relation to the Location Server System or
any part thereof that the Location Server System will be able to process
currency data inputs in all relevant jurisdictions and in particular that
it will be able to:

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	(a)	 	
process currency data inputs in the Euro currency (as
introduced in accordance with the Treaty establishing the European
Community as amended by the Treaty on European Union — the
Maastricht Treaty (together “the Treaty”)); and
 
	(b)	 	
convert currencies of participating Member States (which
adopt the Euro pursuant to the Treaty) from and into Euros at the
conversion rates set by the European Council, in accordance with any
relevant mandatory requirements which are passed by the European
Council from time to time; and
 
	(c)	 	
implement Euro currency formatting conventions and
requirements (including without limitation the Euro symbol)

	 	 	 
		 	
“Data Centre Installation” means the installation by TCS of the Location
Server System in a data centre nominated by the relevant H3G Licensed
Affiliate (as more particularly described in Schedule 18);
 
	 	 	
“Data Centre Installation Fixed Fee” means, in relation to a particular
Territory, the sum to be paid for a Data Centre Installation as set out
under the heading “Data Centre Installation Fixed Fee” in Schedule 10;
 
	 	 	
“Date Compliant” means that neither the performance nor the functionality
of any Supplied Software is adversely affected by dates and in particular
that in any Supplied Software:

	 	 	 
	(a)	 	
no value for any current date will cause any interruption in
operation;
 
	(b)	 	
date-based functionality will behave consistently for all
dates;
 
	(c)	 	
in all interfaces and data storage, the century in any date
will be specified either explicitly or by unambiguous algorithms or
inferencing rules; and
 
	(d)	 	
all relevant years (including without limitation 2004 and
2008) will be recognised as leap years;

	 	 	 
		 	
“Deliverable” means any product, software, interface, design, report,
document, specification or other item or any combination thereof to be
developed, created or provided by TCS in the course of or arising out of
the performance of its obligations under this Agreement and, for the
avoidance of doubt, includes any item or any combination of items
described as a Deliverable in a Work Package;
 
	 	 	
“Dependency” means any task specifically identified as such in the
relevant Work Package that is to be addressed by H3G;
 
	 	 	
“Detailed Design Document Set” means the set of documents which describe
the Location Server System in sufficient detail to enable H3G to approve
the Location Server System for appropriateness for H3G’s Requirements and
H3G’s business needs;

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
		 	
“Divested Business Unit” means:

	 	 	 
	(i)	 	
any company or entity which has been, during any period of
this Agreement, an H3G Affiliate and which ceases to be an H3G
Affiliate as defined within subsections (a) and (b) of the
definition of H3G Affiliate (if such company or entity was an H3G
Affiliate by reason only of the said subsections (a) or (b)) or (if
such company or entity was an H3G Affiliate within subsection (c) of
the definition of “H3G Affiliate”) in relation to which company or
entity HWL divests the entirety of its interest, whether direct or
indirect, whether by way of merger, disposal or otherwise; or
 
	(ii)	 	
any business or undertaking of a company or entity which has
been, during any period of this Agreement, an H3G Affiliate and in
which neither HWL nor any H3G Affiliate has any direct or indirect
interest

	 	 	 
		 	
and which in either case carries on a business as a successor to an H3G
Affiliate or to the business or undertaking of an H3G Affiliate;
 
	 	 	
“Documentation” shall mean all data or information (in whatever form and
on whatever medium) which is originated, prepared or recorded by or on
behalf of TCS or its employees, agents or sub-contractors for the purpose
of describing the functions of the Supplied Software and which may
reasonably be required by H3G for the understanding and operation of the
Supplied Software;
 
	 	 	
“EEA” means the European Economic Area;
 
	 	 	
“Estimated Total Spend” means the total of sums paid and sums payable by
H3G and any and all H3G Affiliates under the Licence Agreement, this
Agreement and all Work Packages (whether Global Work Packages or Local
Work Packages entered into under it) and the Maintenance and Support
Services Agreement (and all agreements ancillary to it), or [*]
whichever is the greater. For the purposes of calculating the total sums
payable under the Maintenance and Support Services Agreement and
agreements ancillary to it the minimum figure shall assume that
maintenance and support is provided for a period of 4 years. This
calculation shall be in pounds sterling and any conversion from any other
currency shall be made using the London spot closing mid-point rate
against the pound sterling for that currency which is shown in the
edition of the Financial Times published in England on that day, or if no
edition is published on that day, in the edition last published before
that day at the time that the Estimated Total Spend is calculated;
 
	 	 	
“Escrow Agreement” means the escrow agreement in the form set out in
Schedule 3 to be entered into pursuant to Clause 3.7;
 
	 	 	
“Event of Force Majeure” means any Act of God, fire, flood, lightning,
war, revolution, act of terrorism, riot or civil commotion (but excluding
strikes and any failures of power or other utilities);
 
	 	 	
“Fees” has the meaning given to it in the Licence Agreement;

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
		 	
“Functional Specification” means the statement of the functionality and
performance required of the Location Server System when installed in
H3G’s Environment as set out in the Technical and Functional Requirements
Document and the Interface Control Documents in Schedule 15;
 
	 	 	
“Global Work Package” means a contract for the provision of Services
entered into between TCS and H3G for the benefit of more than one H3G
Affiliate in the form set out in Schedule 14 or, as the case may be, the
Initial Global Work Package;
 
	 	 	
“H3G Affiliate” means an Affiliate of H3G;
 
	 	 	
“H3G’s Designated Premises” means the H3G premises specified within the
relevant Work Package;
 
	 	 	
“H3G’s Environment” means the user environment in and in respect of which
the Location Server System is to be provided including, without
limitation, the Recommended Platform on which any Supplied Software is to
be installed or with which any hardware has to interface or communicate,
any software with which any Supplied Software is to interface or
communicate and any data (including the format of any data) which is to
be processed by the Supplied Software (or any part thereof);
 
	 	 	
“H3G Equipment” means the IT, computer and telecommunications hardware,
network, communications and ancillary equipment together with any
embedded programs integrated into H3G’s Environment;
 
	 	 	
"H3G Forum Member” means persons or entities who are invited to attend
the H3G forum;
 
	 	 	
“H3G Licensed Affiliates” means the Initial H3G Affiliates and any H3G
Affiliate who has formally opted to receive the Supplied Software
pursuant to the procedure set out in Clause 2;
 
	 	 	
“H3G Premises” means any premises owned by, leased or licensed to or
occupied by H3G or any H3G Affiliate to which any employee or contractor
of TCS has access in the course of TCS’s provision of the Services;
 
	 	 	
“H3G’s Requirements” in the context of a Work Package means H3G’s
requirements in respect of the relevant Services as included by reference
in, expressly stated in, attached to or agreed in writing pursuant to
such Work Package (including, without limitation, the requirements
included in any relevant written statement of requirements or any
specification or in any description of the required Services) and
including, without limitation, any relevant requirements set out in the
RFQ, the Response and the Functional Specification;
 
	 	 	
“H3G Service Provider” means any third party supplier engaged by H3G to
provide goods or services;
 
	 	 	
“H3G Software” means any software made available to TCS by H3G and in
which either H3G or an H3G Affiliate owns the Intellectual Property
Rights or which is

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
		 	
licensed to H3G (or its Affiliates) by a third party (other than the
Third Party Software);
 
	 	 	
“HWL” means Hutchison Whampoa Limited, a company incorporated under the
laws of Hong Kong;
 
	 	 	
“Hardware” means computer, network and electronic hardware and equipment
of every description including any firmware or software which is supplied
as an integral part of such equipment including, without limitation, the
H3G Equipment;

	 	 	 
		 	
“Initial Global Work Package” means the Global Work Package set out
in Schedule 13;
 
	 	 	
“Initial H3G Affiliates” means the H3G Affiliates listed in Schedule
5;
 
	 	 	
“Intellectual Property Rights” means all intellectual property rights,
including without limitation, patents, registered designs, trade marks
and service marks (whether registered or not), rights in the nature of
unfair competition rights copyright, database right, design right, and
all similar property rights including those subsisting (in any part of
the world) in inventions, designs, drawings, performances, computer
programs, semi-conductor topographies, confidential information, business
names, goodwill and the style and presentation of goods or services and
applications for protection of any of the above rights;
 
	 	 	
“Licence Agreement” means the agreement in the agreed form under which
TCS is to license TCS Standard Software and the Customised Software
Developments to H3G, attached as Schedule 8 hereto;
 
	 	 	
“Local Work Package” means a contract for the provision of Services
entered into between TCS and an H3G Affiliate in the form set out in
Schedule 14, including for implementation or development work on the
Location Server System, which is specific to a particular H3G Affiliate,
not relevant to other H3G Affiliates and stated on its face to be a Local
Work Package;
 
	 	 	
“Location Server System” means the Supplied Software when installed on
the Recommended Platform;
 
	 	 	
“Maintenance and Support Services Agreement” means the form of
maintenance and support agreement for the Location Server System
substantially in the form set out in Schedule 11 to this Agreement and
all agreements ancillary to it;
 
	 	 	
“Milestone” means any event or deliverable identified as a “Milestone” in
the relevant Work Package;
 
	 	 	
“Milestone Date” means, in respect of any Milestone, the date set out in
the Project Plan or in the relevant Work Package for the occurrence or
delivery of that Milestone;
 
	 	 	
“Milestone Payment” means any sum expressed to be payable on any event
which is a Milestone;

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
		 	
“Pre-Production Installation” means the installation by TCS of the
Location Server System in a pre-production environment nominated by H3G
in the territory in which the H3G Licensed Affiliate is located (as more
particularly described in Schedule 18);
 
	 	 	
“Pre-Production Installation Fixed Fee” means, in relation to a
particular Territory, the relevant sum to be paid for a Pre-Production
Installation as set out under the heading “Pre-Production Installation
Fixed Fee” in Schedule 10;
 
	 	 	
“Project Manager” means in respect of H3G or TCS the person identified as
such in Schedule 12 or the relevant Work Package and “H3G Project
Manager” and “TCS Project Manager” shall be construed accordingly;
 
	 	 	
“Project Plan” means the detailed timetable for implementation of a Work
Package as agreed from time to time in writing by the Project Managers of
each Party and as initially contained in such Work Package;
 
	 	 	
“Project Staff” means those individuals whose names and roles and
functions are listed under “Project Staff” in Schedule 12 and/or the
relevant Work Package and “TCS Project Staff” shall be construed as being
such individuals who are employees of TCS or its contractors;
 
	 	 	
“Recommended Platform” means the platforms upon which TCS have advised
and recommended that the Supplied Software should and can be operated (as
more particularly described in Schedules 16 and 18 and the documents
referenced therein);
 
	 	 	
“Services” means the design, development, implementation, support,
customisation, systems installation, software customisation, data
migration verification and other services (including, without limitation,
the Training Services, Data Centre Installations, Pre-Production
Installations and the Test Installations) to be provided by, or on behalf
of, TCS to H3G in accordance with this Agreement, or as applicable any
relevant Work Package, as more particularly specified in a Work Package;
 
	 	 	
“Steering Committee” means the committee comprising the persons (or the
authorised replacements of such persons) listed in Schedule 12 as being
members of such committee;
 
	 	 	
“Supplied Software” shall have the meaning given in the Licence
Agreement;
 
	 	 	
“Territory” has the meaning given in the Licence Agreement;
 
	 	 	
“Test Installation” means the installation by TCS of the Location Server
System on a test network nominated by H3G in the territory in which the
H3G Licensed Affiliate is located (as more particularly described in
Schedule 18);
 
	 	 	
“Test Installation Fixed Fee” means, in relation to a particular
Territory, the relevant sum to be paid for a Test Installation as set out
under the heading “Test Installation Fixed Fee” in Schedule 10;

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
“TCS Standard Software” means the computer programs in object code form
together with any accompanying documentation which are the proprietary
products of TCS and which are listed as such within Schedule 1 to this
Agreement;
 
	 	 	
“Third Party Software” means the third party software listed in Schedule
1 to the Licence Agreement together with any software which TCS is
required to procure from third parties pursuant to the terms of any Work
Package or which TCS actually procures from third parties for the purpose
of providing Services under such Work Packages;
 
	 	 	
“Training Services” means the training services to be provided by TCS to
H3G pursuant to Clause 3;
 
	 	 	
“Virus” means any code which is designed to disrupt, disable, harm, or
otherwise impede in any manner, including aesthetic disruptions or
distortions, the operation of the Supplied Software, or any other
associated hardware, software, firmware, computer system or network, or
would disable the Supplied Software or impair in any way its operation
based on the elapsing of a period of time, exceeding an authorised number
of copies, advancement to a particular date or other numeral, or that
would permit TCS or any other person to access the Supplied Software to
cause such disablement or impairment, or which contains any other similar
harmful, malicious or hidden procedures, routines or mechanisms which
would cause such programs to cease functioning or to damage or corrupt
data, storage media, programs, equipment or communications, or otherwise
interfere with operations; and
 
	 	 	
“Work Package” means a Global Work Package or a Local Work Package.
 
	1.2	 	
Words importing the singular shall include the plural and vice versa;
words denoting persons shall include bodies corporate and unincorporated
associations of persons and vice versa.
 
	1.3	 	
References to Clauses and Schedules are, unless otherwise stated,
references to the clauses of and schedules to this Agreement.
 
	1.4	 	
Reference to any statute or statutory provision is, except where stated
otherwise, to a United Kingdom statute or statutory provision. Such
reference includes any consolidation or re-enactment, modification or
replacement of the same, any statute or statutory provision of which it is
a consolidation, re-enactment, modification or replacement and any
subordinate legislation in force under any of the same from time to time.
 
	1.5	 	
Clauses 1.1 to 1.4 apply unless the contrary intention appears.
 
	1.6	 	
The headings in this Agreement or in any Work Package do not affect its
or their interpretation.
 
	1.7	 	
The Schedules to this Agreement form part of it.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	1.8	 	
In the event of any conflict or ambiguity between contractual provisions,
the order of precedence for this Agreement, the Licence Agreement and the
documents attached to or referred to in either of them shall be, in
descending order, as follows:

	 	 	 
	(a)	 	
the main terms and conditions, Clauses 1-29 of this Agreement;
 
	(b)	 	
the Functional Specification (with the “Technical and Functional
Requirements Document” taking precedence over the Interface Control
Documents);
 
	(c)	 	
the other Schedules to this Agreement;
 
	(d)	 	
the main terms and conditions, Clauses 1-18 of the Licence
Agreement;
 
	(e)	 	
the Schedules to the Licence Agreement.

	 	 	 
	 	 	
For these purposes Work Packages shall be regarded as Schedules to this
Agreement, subject however to the provisions of Clause 1.11 below.
 
	1.9	 	
All Global Work Packages (other than the Initial Global Work Package)
which are expressed to be entered into pursuant to this Agreement and
which are signed by the Parties to this Agreement shall be a separate
contract but shall be made upon the terms of this Agreement save as
expressly stated to be varied in such Global Work Package and save that
the Initial Global Work Package shall not be part of such subsequent
Global Work Packages. Upon being so incorporated all references to
“Agreement” shall be to such Global Work Package with such terms so
incorporated.
 
	1.10	 	
All Local Work Packages which are expressed to be entered into pursuant
to this Agreement and which are signed by TCS and an H3G Affiliate shall
be a separate contract between such signatories but shall be made upon the
terms of this Agreement save as expressly stated to be varied in such
Local Work Package and save that:
 
	1.10.1	 	
all references to H3G shall be construed as referring to the H3G
Affiliate;
 
	1.10.2	 	
all references to a Party or Parties shall be to TCS and/or the H3G
Affiliate as the case may be;
 
	1.10.3	 	
Clause 2 shall not be incorporated other than Clauses 2.6 and 2.7 which
shall be incorporated. Clause 2.6 as incorporated shall, for the
avoidance of doubt, result in TCS being entitled only to take proceedings
against the H3G Affiliate who is party to such Local Work Package and not
against Hutchison Whampoa 3G IP S.à.R.L.;
 
	1.11	 	
As between this Agreement (for the purposes of this Clause 1.11 alone,
excluding all Work Packages) and any Work Package, this Agreement shall
prevail in the event of any conflict save where:
 
	1.11.1	 	
any provision in a Work Package is expressly stated to vary or amend
this Agreement;
 
	1.11.2	 	
the Agreement expressly contemplated in relation to such provision that
the Work Package may provide otherwise.
 

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
In any case, any variation in a Work Package of the terms of this
Agreement shall operate only in relation to such Work Package.
 
	2	 	
Beneficiaries of the Agreement/Scope
 
	2.1	 	
H3G Affiliates are intended beneficiaries of this Agreement and may
enforce the terms of this Agreement under the terms of the Contracts
(Rights of Third Parties) Act 1999. However, the Parties to this
Agreement may rescind, vary, amend or terminate this Agreement without the
consent of any H3G Affiliate, notwithstanding that an H3G Affiliate has
relied on, or indicated assent to, any term of this Agreement. For the
avoidance of doubt, all the terms of this Agreement are intended to confer
a benefit on each H3G Affiliate.
 
	2.2	 	
Except as provided in Clause 2.1, a person who is not a party to this
Agreement has no right under the Contracts (Rights of Third Parties) Act
1999 to enforce any term of this Agreement but this does not affect any
right or remedy of an H3G Affiliate which exists or is available apart
from the Contracts (Rights of Third Parties) Act 1999.
 
	2.3	 	
In the event of any breach of this Agreement by TCS, TCS shall be liable
for not just the losses, damages and expenses suffered or incurred by H3G
but also for any such losses, damages and expenses suffered or incurred by
any H3G Affiliate. This Clause 2.3 applies mutatis mutandis to any loss
or damage suffered by any H3G Affiliate by reason of any tort, delict or
other act or omission of TCS which gives rise to liability of TCS to H3G
(or were the loss or damage to have been suffered by H3G would give rise
to such liability) other than by reason of the provisions of this
Agreement but related to the subject matter of this Agreement or any Work
Package.
 
	2.4	 	
If, notwithstanding the provisions of Clauses 2.1 and 2.3, any H3G
Affiliate cannot for any reason recover the losses referred to in Clauses
2.1 or 2.3 against TCS or finds itself in a less advantageous position
under the Contracts (Rights of Third Parties) Act 1999 than it would have
been had it been a party to the Agreement, then the provisions of Clause
2.1 (to the extent that they refer to the relevant Affiliate) shall be
varied so as to read:
 
	 	 	
“H3G declares itself trustee of the obligations, covenants and
indemnities given in this Agreement by TCS insofar as they are expressed
to be for the benefit of the H3G Affiliates and holds the said
obligations, covenants and indemnities upon trust for the absolute
benefit of the H3G Affiliates and TCS hereby covenants with H3G (in its
capacity as such trustee) to perform each of the said obligations,
covenants and indemnities.”
 
	2.5	 	
No proceedings may be brought by an H3G Affiliate against TCS without the
consent of H3G (which, if given, may be conditional upon or subject to
such procedural limitations or controls as H3G may impose in any case).
 
	2.6	 	
Proceedings may only be brought by TCS against H3G in relation to the
subject matter of this Agreement. For the avoidance of doubt, no
proceedings may be brought by TCS against any H3G Affiliate.
 

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	2.7	 	
At H3G’s discretion and upon notice by H3G of divestment of an H3G
Affiliate and of H3G’s desire to rely on the provisions of this Clause 2.7
from H3G to TCS, the Parties hereby undertake to enter into a novation
agreement substantially in the form set out in Schedule 5 with the
Divested Business Unit or its owner.
 
	2.8	 	
Notwithstanding the provisions of Clause 2.7, TCS reserves the right not
to enter into a novation agreement with the companies or entities set out
in Schedule 17.
 
	2.9	 	
Any obligations of H3G may be validly discharged by any H3G Affiliate and
any rights of H3G may be exercised by any H3G Affiliate (irrespective of
the fact that the relevant term of the Agreement refers only to the
Parties).

	 	 	 
	2.10	 	
No references to the enforcement of rights by H3G Affiliates contained in
this Agreement include a right to terminate this Agreement.
 
	2.11	 	
Prior to delivery of the Supplied Software, H3G shall send notification
to TCS detailing which H3G Affiliate wishes to receive the Supplied
Software and detailing in each case whether the relevant H3G Affiliate has
elected to receive a Data Centre Installation, a Test Installation or a
Pre-Production Installation (or a combination of all three).
 
	2.12	 	
Notwithstanding the provisions of Clause 2.3, H3G shall consolidate all
claims arising out of the same cause of action into one proceeding such
that no more than one H3G Affiliate can bring a claim for the same cause
of action.

	 	 	 
	3	 	
TCS Obligations
 
	3.1	 	
The Parties shall enter into the Licence Agreement attached as Schedule 8
forthwith.
 
	3.2	 	
Any software created or supplied or procured by TCS shall, irrespective
of whether it was created, supplied or procured pursuant to a Global Work
Package, a Local Work Package or the Licence Agreement, be licensed or
assigned by TCS to H3G under the terms of the Licence Agreement.
 
	3.3	 	
TCS shall provide the Services as described in this Agreement, any
relevant Global Work Package agreed upon in writing between the Parties
and any Local Work Package agreed upon in writing between TCS and the
relevant H3G Affiliate.
 
	3.4	 	
There is no limitation on the period during which H3G may choose to call
upon TCS to provide the Services on the basis set out in this Agreement.
H3G Affiliates are free to choose which of the Services they require and
such Services shall be provided by TCS at the fees agreed by the parties.
 
	3.5	 	
TCS shall provide the Services in accordance with the relevant Work
Package and so as to ensure that the Location Server System:

	 	 	 
	(a)	 	
meets H3G’s Requirements (including but not limited to complying
with the Functional Specification);
 
	(b)	 	
achieves Acceptance in accordance with the Acceptance Tests;
 

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	(c)	 	
complies in all respects with the Detailed Design Document Set;

	 	 	 
	3.6	 	
TCS will carry out its obligations in respect of any Work Package at the
times prescribed in the relevant Project Plan (if any) or, where no time
is prescribed, as soon as is reasonably practical. Where Milestones are
specified in a Project Plan, TCS shall achieve those Milestones on or
before the associated Milestone Dates.
 
	3.7	 	
TCS will deposit the source code of any software to be provided by TCS
under this Agreement and any related Documentation (“Supporting
Documentation”) in escrow and shall keep such source code and Supporting
Documentation up to date under an escrow agreement with NCC Escrow
International Limited in the form set out in Schedule 3. The Parties
shall upon the entering into of this Agreement enter into such escrow
agreement with NCC Escrow International Limited. The Escrow Agreement
shall, in any event, permit H3G and its Affiliates to have access to the
source code of such software in the following circumstances and as set out
in the escrow agreement in Schedule 3:

	 	 	 
	(a)	 	
if any of the events described in Clause 19.3.1 of this Agreement
occurs or, in the case of Clause 19.3.1(b) of this Agreement, in H3G’s
opinion, is reasonably likely to occur in relation to TCS; or
 
	(b)	 	
in the event of a material breach by TCS of its obligations under
the Licence Agreement, the Maintenance and Support Services Agreement,
this Agreement or any Global Work Package agreed under this Agreement
or the termination of any of the same on account of TCS’s default; or
 
	(c)	 	
if TCS ceases to provide support and maintenance services in
respect of such software; or
 
	(d)	 	
if TCS’s unrestricted cash balance falls below [*]; or
 
	(e)	 	
if a Force Majeure event as defined under the Maintenance and
Support Agreement prevents TCS from maintaining or supporting such
software; or
 
	(f)	 	
if an Event of Force Majeure as defined in this Agreement
entitles H3G to terminate this Agreement;
 
	(g)	 	
if TCS fails to enter into the Maintenance and Support Services
Agreement when requested to do so by H3G.

	 	 	 
	3.8	 	
Where it is TCS’s responsibility to ensure that the Supplied Software
achieves Acceptance (which will be the case unless the Work Package states
the contrary), TCS shall ensure that the Supplied Software achieves
Acceptance at the time or times prescribed in the relevant Project Plan
(if any) or, where no time is prescribed, as soon as is reasonably
practical and in any event so that all Milestone Dates are met. [*]

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	3.9	 	
Nothing in this Agreement shall give TCS the exclusive right to supply
H3G or any of the H3G Affiliates with goods or services of any particular
description.

	 	 	 
	3.10	 	
Without prejudice to Clause 11, TCS shall comply with H3G’s physical and
logical security provisions as published from time to time.
 
	3.11	 	
TCS shall co-operate fully with H3G, H3G Service Providers and other
third parties and in particular but without limitation shall, provided the
H3G Service Provider has signed a confidentiality agreement protecting
TCS’ confidential information provide such access as H3G, and H3G Service
Providers shall reasonably require in the circumstances to the
descriptions of the Services, descriptions of Supplied Software including
release and version levels of such Supplied Software, technical
specifications of such Supplied Software, network diagrams, user manuals
and operating manuals generally published for such Supplied Software,
process definitions and procedures;
 
	 	 	
All information of a confidential nature and which relates to H3G or any
H3G Service Provider and of which TCS becomes aware as a result of this
obligation shall, for the avoidance of doubt, be Confidential Information
of H3G.
 
	3.12	 	
TCS Project Manager or Managers shall have appropriate experience and
qualifications to manage the provision of the Services and shall work
closely with H3G as directed by the H3G Project Manager.
 
	 	 	
Training Services
 
	3.13	 	
TCS will provide H3G with training services in the form of on-site
classroom based training for the deployment of the Location Server System
for each H3G Affiliate,with each class being of a week’s duration and up
to fifteen (15) H3G representatives being permitted to attend (“Initial
Training Services”).
 
	3.14	 	
The Initial Training Services will, as a minimum, address the following

specific topics:

	 	 	 
	(a)	 	
Location Server System operations;
 
	(b)	 	
Operational maintenance;
 
	(c)	 	
Location Server System tuning;
 
	(d)	 	
Location Server System monitoring;
 
	(e)	 	
Use of sizing tools;
 
	(f)	 	
Basic troubleshooting;
 
	(g)	 	
System provisioning.

	 	 	 
	3.15	 	
TCS shall, as part of the Initial Training Services, provide H3G with
documentation which describes in detail how each element of the Location
Server System detailed in Clause 3.14 operates.
 
	3.16	 	
In addition to the Initial Training Services, TCS will develop and
provide customised training services to meet the pre-agreed objectives of
H3G in the form of one-week on-site classroom or laboratory training, at
the option of H3G, for up to 15 H3G representatives (“Customised Training
Services”).
 

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	3.17	 	
H3G shall provide the classroom facility and access to the laboratory
system for the practical elements of all Training Services (which, for the
avoidance of doubt, will be conducted in English).
 
	 	 	
H3G Obligations
 
	3.18	 	
H3G will provide TCS with written notice of any changes made to the
individual components of, or the configuration environment of the Location
Server System.
 
	3.19	 	
H3G will, in relation to each Work Package, provide a single point of
contact who will be responsible for decisions relating to H3G’s
requirements relating to the technical aspects of the Work Package.

	 	 	 
	4	 	
Warranties – Location Server/Supplied Software
 
	4.1	 	
Without prejudice to any other provision of this Agreement, TCS warrants
that it will provide the Services to H3G (and where such standards are in
conflict, at the standard which would, from the point of view of H3G,
provide the highest degree of quality):

	 	 	 
	(a)	 	
with reasonable skill and care; and
 
	(b)	 	
utilising personnel who are competent, professional and who
possess skills and experience which are appropriate to the roles
assigned to them.

	 	 	 
	4.2	 	
By entering into this Agreement or into a Work Package TCS warrants and
represents to H3G (as at today’s date or the date on which the Work
Package in question comes into effect, as the case may be) that, save as
expressly stated to the contrary in the Work Package in question:

	 	 	 
	(a)	 	
it will provide the Location Server System in accordance with
the Functional Specification;
 
	(b)	 	
the Location Server System and every part of it which is to be
provided under each Work Package will perform in accordance with, and
is suitable for the purposes set out in, the RFQ and the Functional
Specification;
 
	(c)	 	
TCS has the unencumbered legal and beneficial right to support,
maintain, modify, develop and licence to H3G all Supplied Software
which is to be supplied to H3G under the Work Package in question;
 
	(d)	 	
the Location Server System (and any part thereof) will be free
of programming errors until 90 days after Commercial Production of
the Location Server System (“End of the Warranty Period”);
 
	(e)	 	
the Location Server System (and any part thereof) is Currency
Compliant;
 
	(f)	 	
the Location Server System (and any part thereof) is Date
Compliant;

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	(g)	 	
the Location Server System (and any part thereof) is free of
any Viruses;
 
	(h)	 	
the Location Server System will operate in a live environment
within the parameters as to capacity and usage set out in the
Functional Specification without the need to purchase any additional
hardware other than that set out in Schedule 16 or any additional
Supplied Software in addition to that set out in Schedule One and the
Interface Control Documents;
 
	(i)	 	
The Third Party Software will cost no more than the maximum
fees payable set out in Schedule 10. In the event that the Supplied
software does not operate in accordance with the Functional
Specification due to the need to purchase additional Third Party
Software (taking into account the Subscriber numbers per Data Centre
Installation) then TCS shall pay for any required additional Third
Party Software.

H3G Warranties

	 	 	 
	4.3	 	
H3G warrants that its entire issued share capital is legally and
beneficially owned by HWL.
 
	4.4	 	
H3G warrants that, as of the Commencement Date, the Initial H3G
Affiliates are controlled by HWL (where “controlled” has the meaning set
out in section 574(2) of the UK Capital Allowances Act 2001).
 
	5	 	
Maintenance and Support Services Agreement
 
	5.1	 	
Upon entering into this Agreement the parties shall, if so required by
H3G, enter into the Maintenance and Support Services Agreement for
maintenance and support of the Location Server System. TCS acknowledges
that if TCS fails to enter into the Maintenance and Support Services
Agreement when required to do so by H3G this will entitle H3G under the
terms of the Licence Agreement to use the source code of the Supplied
Software in whatever manner necessary to maintain the Supplied Software
and to further develop the Supplied Software.
 
	6	 	
Deployment Options/Architecture of the Location Server System
 
	6.1	 	
The categorisation of the Services into Data Centre Installations, Test
Installations and Pre-Production Installations and the descriptions of
these services is set out in Schedule 18.
 
	6.2	 	
Each H3G Affiliate is free to select whether it wishes to opt for Data
Centre Installations, Test Installations or Pre-Production Installations
or any combination or number of the foregoing.
 
	6.3	 	
H3G and TCS shall mutually agree in writing the architecture of the
Location Server System and TCS have documented this in the Technical &
Functional Requirements Document to standards agreed with H3G.
 

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	7	 	
Charges
 
	7.1	 	
The parties have agreed that all work and materials provided by TCS in
undertaking Data Centre Installations, Pre-Production Installations and
Test Installations shall be carried out on a fixed-fee basis. The fixed
fee for all Data Centre Installations shall be the Data Centre
Installation Fixed Fee, the fixed fee for the Pre-Production Installations
shall be the Pre-Production Installation fixed fee and the fixed fee for
all Test Installations shall be the Test Installation Fixed Fee.
 
	7.2	 	
Subject to Clause 7.1, the parties have agreed that all work carried out
by TCS under Local Work Packages shall be provided at the Agreed Rate. In
the event that H3G require TCS to undertake any work outside the United
Kingdom then H3G will, provided TCS have complied with H3G’s expenses
policy, pay TCS the Agreed Expenses (on the assumption that travel to
Territories other than the United Kingdom will be reimbursed as if travel
has been from the United Kingdom to the relevant Territory unless the cost
of travelling direct from the location where the TCS employee, agent or
sub-contractor was based was less expensive in which case the less
expensive option will be the figure reimbursed).
 
	7.3	 	
The parties have agreed that the Agreed Rate will be valid for a period
of one year from the Commencement Date. Prior to expiry of such period,
the parties will re-negotiate the Agreed Rate taking into account market
conditions and the cost of manpower in the relevant IT skill-set market.
TCS agrees that any increase in the Agreed Rate shall not exceed the
percentage increase in the UK Retail Prices Index in the year prior to
which the increase is to become effective.
 
	7.4	 	
Subject to Clause 7.3, in the event that the parties cannot agree on the
revised Agreed Rate, the dispute shall be submitted for expert
determination by the President for the time being of the British Computer
Society.
 
	7.5	 	
H3G shall pay the Charges to TCS and at the times and in the manner set
out in Schedule 10 and the relevant Work Package. No Charges shall be
payable until the relevant Milestone and Acceptance of the Location Server
System, where relevant, has been achieved) at which time, subject to
Clauses 13.7 and 13.8, the full amount of the Charges shall be payable
within 30 days of the date of the respective invoice for such Services.
TCS reserves the right to charge interest on overdue payments at
[*] from the date payment was due until payment is made unless H3G notifies TCS in
advance that any portion of the invoice is disputed pursuant to Clause
7.11 below.
 
	7.6	 	
In the event that H3G acquires or wishes to acquire further products,
software or services from TCS then such procurement shall be on terms no
less favourable to H3G than those offered under this Agreement and any
Work Packages which have been entered into.
 
	7.7	 	
Subject to Clause 7.8, the Charges set out in Schedule 10 and the
relevant Work Package represent TCS’s sole right to payment for the
relevant Supplied Software and the Services and TCS has no right to any
additional remuneration under the relevant Work Package or this Agreement.
Without prejudice to the generality of the foregoing statement, the
Charges include the supply of:

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	(a)	 	
TCS Project Staff, the Project Manager and all other human
resources;
and
 
	(b)	 	
all Supplied Software and all other equipment and Intellectual
Property Rights necessary for the fulfilment of TCS’s obligations
under this Agreement and the relevant Work Packages.

	 	 	 
	7.8	 	
In the event that H3G fails to fulfil a Dependency by the relevant date
expressly set out in writing in the relevant Work Package then TCS may, to
the extent due to the failure by H3G to fulfil the relevant Dependency by
the relevant date set out in the Work Package, and, subject to TCS
complying with its duty to deploy resource elsewhere mitigate such costs,
claim its reasonably incurred direct costs.
 
	7.9	 	
TCS shall, where applicable, render VAT (or other similar tax) invoices
in accordance with the specific terms of the relevant Work Package (or
invoices compliant with applicable legislation from time to time) in
respect of the Charges together with all necessary substantiating
documents required by H3G. Invoices shall be sent to H3G in accordance
with the requirements set out in Clause 23 in relation to notices. In the
absence of such invoices and documentation the Charges shall be inclusive
of VAT and all other similar taxes. If withholding taxes are payable, H3G
shall withhold such sums from payments due to TCS and pay such amounts to
the relevant authorities in accordance with the applicable laws, and shall
provide to TCS any and all withholding tax certificates.

	 	 	 
	7.10	 	
Where payment of an instalment of Charges is linked to achievement of a
Milestone, H3G shall not be liable to make such payment, and no invoice
shall be sent to H3G, until the relevant Milestone has been achieved.
 
	7.11	 	
In the event that H3G reasonably considers that any portion of an invoice
submitted by TCS is not in accordance with the terms of this Agreement or
relates to items supplied or services performed otherwise than in
accordance with TCS’s obligations under this Agreement or any Work
Package, H3G shall be entitled to withhold payment of the disputed portion
of the invoice without prejudice to any other rights or remedies it may
have.
 
	7.12	 	
TCS undertakes to H3G that all charges and fees provided for under this
Agreement and any that may be proposed in the future are and will be no
less favourable than those offered by TCS to any other customer (taking
into account likely subscriber numbers and similar installation
requirements).

	 	 	 
	8	 	
Office Facilities
 
	8.1	 	
Each Party shall during the term of this Agreement procure the provision
to the other Party of such office and other facilities as the relevant
Work Package may specify. Each Party agrees to use such facilities solely
for the purpose of performing its obligations under this Agreement.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	8.2	 	
Nothing in this Agreement shall confer on either Party or its Affiliates
any right or interest in any premises owned or occupied by the other Party
or by any Affiliate of the other.
 
	9	 	
Intellectual Property Rights
 
	 	 	
Any ideas, concepts, know-how or techniques and Intellectual Property
Rights developed by H3G, or any H3G Service Provider, in relation to the
subject matter of this Agreement will be owned by [*] (and [*] shall have
no licence to use such Intellectual Property Rights save as permitted by
[*] for the purpose of providing the Services) and all data provided by
[*] shall remain the sole and exclusive property of [*]
 
	10	 	
Personnel

	 	 	 
	10.1	 	
TCS shall ensure that its employees, agents and sub-contractors shall,
when working on H3G’s Premises, conform to H3G’s working terms and
conditions as published from time to time and supplied by H3G to TCS and
shall comply with H3G’s regulations and codes of conduct as published from
time to time and supplied by H3G to TCS, including (but not limited to)
H3G’s regulations as to health and safety. Any changes to such terms and
conditions, regulations or codes shall be provided to TCS prior to
becoming effective. Any access by either Party, its employees,
contractors, auditors and agents to any premises, equipment or data owned
by or leased or licensed to the other shall be subject to the other’s then
published security and safety regulations.
 
	10.2	 	
TCS acknowledges and agrees that it shall be entirely responsible for the
performance, acts and omissions of any of its sub-contractor(s) in
relation to the supply of the Services and that H3G is entitled to regard
and to treat such sub-contractors as being TCS’s staff in every respect.
 
	10.3	 	
Prior to engaging any sub-contractor in the provision of the Services,
TCS undertakes to obtain the prior written consent of the H3G Project
Manager, such consent not to be unreasonably withheld or delayed.
 
	10.4	 	
If H3G requires that any employee, agent or sub-contractor of TCS or any
employee of any agent or sub-contractor of TCS, should be removed either
from any further provision of the Services or from the H3G Premises on
which he is located, it shall notify TCS accordingly in writing, giving
(where appropriate) full details of the conduct of such employee, agent or
sub-contractor that gave rise to such requirement. The Parties shall
attempt to negotiate a solution to the problem save where it is reasonable
for H3G to require the immediate removal of the individual or individuals
concerned. In default of agreement to the contrary within two (2)
Business Days of H3G’s first raising the matter or where it is reasonable
for H3G to require the immediate removal of the individual or individuals
concerned, the employee, agent or sub-contractor shall be removed from the
provision of the Services or from the H3G Premises (as the case may be).
 
	10.5	 	
TCS Project Managers and TCS Project Staff shall, unless the H3G Project
Manager has given its prior written consent, be based at H3G’s Designated
Premises.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	10.6	 	
H3G shall have the right to specify the relevant skill-sets required of
TCS’s employees and contractors engaged in the provision of the Services.
In the event that TCS needs to replace any such employee or contractor,
TCS shall ensure that any replacement spends a suitable period of time, at
no charge to H3G, familiarising themselves with the Supplied Software and
the H3G Requirements.
 
	10.7	 	
In the event that TCS wishes to change its Project Manager or any member
of its Project Staff, such change must receive the prior written consent
of H3G (such consent not to be unreasonably withheld or delayed).
 
	10.8	 	
TCS shall indemnify H3G and its Affiliates in relation to any loss or
damage caused to any property belonging to H3G or its Affiliates and/or to
H3G Premises as a result of any act or omission of TCS, its employees,
agents or contractors.

	 	 	 
	10.10	 	
The H3G Project Manager shall have the right to nominate an alternate in
the event of his absence. [*]
 
	11	 	
Confidentiality, Data Protection and Publicity
 
	11.1	 	
Each Party shall keep and procure to be kept secret and confidential all
Confidential Information disclosed by the other Party or its Affiliates as
a result of the relationship of the Parties under this Agreement and shall
not use or disclose the same (except to its employees, consultants,
subcontractors, agents, professional advisers or insurers and in the case
of H3G to its Affiliates or H3G Forum Members, their employees,
consultants, subcontractors, agents, professional advisers or insurers and
any of its or H3G Affiliates’ or H3G Forum Members’ shareholders or
financiers or potential shareholders or financiers (the “Authorised
Recipients”)) save for the purposes of the proper performance of this
Agreement or with the prior written consent of the other Party. Where
disclosure is made to any Authorised Recipient, it shall be done subject
to obligations equivalent to those set out in this Clause 11 and each
Party agrees to ensure that, if the other Party so requests, prior to such
disclosure such Authorised Recipient has entered into obligations
equivalent to those set out in this Clause 11, provided that this shall
not be required for a disclosure by H3G to any of its Affiliates or any
H3G Forum Members or its or their shareholders. Each Party shall use its
best endeavours to procure that any such Authorised Recipient complies
with such obligations.
 
	11.2	 	
The obligations of confidentiality in this Clause 11 shall not extend to
any matter which either Party can show:

	 	 	 
	(a)	 	
is in, or has become part of, the public domain other than as a
result of a breach of the obligations of confidentiality under this
Agreement; or
 
	(b)	 	
was in its written records prior to the Commencement Date or to
the disclosure to it of the Confidential Information; or
 
	(c)	 	
was independently disclosed to it by a third party entitled to
disclose the same.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	11.3	 	
The obligations of confidentiality in this Clause 11 shall not prevent
either Party or any Affiliate of H3G from disclosing such Confidential
Information where it is required to do so under any applicable law, or by
order of a court or governmental body of authority of competent
jurisdiction, any regulatory authority or by the rules of any recognised
stock exchange.
 
	11.4	 	
Each Party shall establish and maintain such security measures and
procedures as are reasonably practicable to provide for the safe custody
of the Confidential Information of the other Party and (in the case of
TCS’s obligation under this Clause 11.4) of the Affiliates of H3G in its
possession and to prevent unauthorised access thereto or use thereof.
 
	11.5	 	
Without prejudice to Clauses 11.1 and 11.4 insofar as they relate to any
Confidential Information of H3G or its Affiliates, any personal data which
is processed in any manner by TCS (where personal data has the meaning as
defined in section 1(1) of the Data Protection Act 1998 or any analogous
law in any country which has jurisdiction in relation to the subject
matter of this Agreement (such legislation together with the Data
Protection Act 1988, “Data Protection Legislation”)), TCS shall only
undertake such processing in accordance with the instructions of H3G or
its Affiliates and TCS shall comply with all of its obligations under any
relevant Data Protection Legislation and any obligations which H3G or an
H3G Affiliate is obliged to impose upon TCS, including in particular, the
adoption of appropriate technical and organisational measures against
unauthorised or unlawful processing of personal data and against
accidental loss or destruction of, or damage to, personal data.
 
	11.6	 	
Nothing in this Agreement shall confer any right, title, interest or
licence on TCS in relation to any Confidential Information of H3G or its
Affiliates. Each Party shall take all necessary steps to ensure that any
Confidential Information which comes into its possession or control is
adequately protected and in particular each Party shall not use such
Confidential Information nor reproduce such Confidential Information in
whole or in part in any form except as may be required by this Agreement.
 
	11.7	 	
Neither Party shall make any press announcements or otherwise publicise
the existence or provisions of this Agreement or the fact that TCS has
been engaged to supply the Services to H3G without the other Party’s prior
written consent as to the form and content of such announcement, save as
and to the extent required by the rules of any relevant stock exchange.
 
	11.8	 	
Notwithstanding Clause 11.7, the parties agree to issue within five (5)
days of the Commencement Date, a joint press release announcing the
execution and general substance of this Services Integration Agreement.
H3G shall have the right to insist upon the exact wording of such joint
press release.
 
	11.9	 	
Following Commercial Production, TCS may request H3G’s consent to include
H3G’s details on TCS’ customer lists (such consent not to be unreasonably
withheld). TCS shall remove H3G’s details from TCS’ customer lists
forthwith on receiving 30 days written notice from H3G.
 
	11.10	 	
The obligations set out in Clauses 11.1 to 11.7 shall survive the
termination (for whatever reason) of this Agreement.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	12	 	
Management
 
	12.1	 	
For each Work Package each Party shall appoint a Project Manager, named
in such Work Package, who shall be responsible for co-ordination of all
matters relating to management of that Work Package and, where other
Project Staff (including, without limitation, employees and contractors
utilised by TCS) are named in the Work Package, shall appoint such persons
to their respective positions.
 
	12.2	 	
All communications, documentation and materials relating to managerial
and administrative matters relevant to a Work Package which are to be sent
by one party to the other shall be sent to the other’s Project Manager.
 
	12.3	 	
For the duration of any Work Package, the Project Managers (and such
Project Staff as each Project Manager from time to time may consider
appropriate) shall meet as specified in the relevant Work Package for the
purpose of discussing the progress of the Work Package and any other
relevant matters.
 
	13	 	
Acceptance Testing
 
	 	 	
General
 
	13.1	 	
The following provisions of this Clause 13 shall apply (subject to any
express amendments made in the relevant Work Package) in relation to the
supply of any Supplied Software and to the supply of the Location Server
System.
 
	13.2	 	
Where the parties have agreed further details as to the form or the
conduct of Acceptance Tests, those details shall be deemed to be
incorporated herein but, in the event of conflict between those details
and any other express term of this Agreement (including any other express
term of this Clause 13), then, save to the extent expressly stated to the
contrary in the relevant Work Package, this Agreement shall prevail.
 
	 	 	
Testing by TCS
 
	 	 	
Before delivery by TCS of the Location Server System (or any component
thereof) to H3G for Acceptance Testing, TCS shall test the same to ensure
that it performs fully in accordance with the relevant specification
document for such component and the Functional Specification (“System
Test”) and shall promptly supply H3G with the test results.
 
	 	 	
Testing by H3G
 
	13.3	 	
The Location Server System and its components shall be tested by H3G in
accordance with the Acceptance Test procedures set out in the Acceptance
Tests Plan, this Clause and in the relevant Work Package to verify that it
and they operate in accordance with the relevant specification document
and the Functional Specification. Successful completion of the Acceptance
Tests of such Location Server System (or such part as is subject to
testing) shall occur when it attains all the Acceptance Criteria in the
relevant Work Package. On acceptance of such whole or part H3G shall
either sign and issue to TCS a certificate confirming Acceptance or notify
TCS of rejection.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	13.4	 	
Acceptance of the Location Server System or any part thereof shall be
without prejudice to any rights or remedies of H3G in respect of any
breach of the express representations and warranties of TCS. Acceptance
of any part of the Location Server System which is tested in advance of
the remainder shall be without prejudice to H3G’s right to submit such
part to a further test with any larger part of the Location Server System
and to reject the whole or such larger part (including the part already
tested) if it fails to achieve Acceptance at this later stage.
 
	 	 	
Effect of failure to achieve Acceptance
 
	13.5	 	
If the Location Server System (or any part thereof) fails to achieve
Acceptance:

	 	 	 
	(a)	 	
the Project Managers shall agree a date and time for running
repeat Acceptance Tests in respect of the Location Server System or
component thereof, such date and time to be as soon as possible
following the first Acceptance Tests and in any event within (and in
default of agreement on) [*] and
 
	(b)	 	
if the Location Server System or any such part fails to achieve
Acceptance in the course of the repeat tests a second repeat of the
Acceptance Tests shall be arranged within a maximum of [*]
 and carried out and if there is a failure to achieve Acceptance
in the course of the second repeat of the Acceptance Tests then H3G
shall be entitled, without prejudice to any other remedy which it
might have, to:

	 	 	 
	(i)	 	
require TCS to supply, free of charge, such
additional services to rectify any defect in the part of the
Location Server System as may be necessary to enable the
Location Server System or the component part thereof, as
appropriate, to pass the Acceptance Tests;
 
	(ii)	 	
accept and retain such of the Location Server
System as it may consider expedient at such reduction to the
Charges as agreed upon in writing between the parties; or
 
	(iii)	 	
terminate the relevant Work Package as under
Clause 20.3 and receive a refund of the payments made by H3G
under the relevant Work Package without prejudice to H3G’s
other rights and remedies.

	 	 	 
	13.6	 	
H3G reserves the right, in relation to any functionality of the Location
Server System which TCS is required to provide under this Agreement or any
Work Package, to remedy any defects in the provision of such functionality
or to appoint third parties to do so, at the cost of TCS.
 
	 	 	
Conditional acceptance
 
	13.7	 	
If H3G determines that TCS has substantially but not fully achieved any
Milestone, it may in its sole discretion pay to TCS the proportion of the
Milestone Payment which H3G considers to represent the proportion of the
Milestone achieved by TCS. Notwithstanding any payment by H3G pursuant to
this clause, H3G may require TCS to continue to provide the Services until
the Milestone is fully Accepted.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	13.8	 	
If H3G incorporates Deliverables into its service to Subscribers (as
defined within the definition of Commercial Production) and any Milestone
Payments relating to such Deliverables have not been paid to TCS, H3G
shall pay such Milestone Payments in accordance with Schedule 10 (the
Charges Schedule) and the Work Package subject to the following:
 
	13.8.1	 	
H3G shall not be required to make the Milestone Payment unless H3G,
acting reasonably, considers that the outstanding defects are minor and
the relevant part of the Location Server System meets H3G’s Requirements
in all other respects;
 
	13.8.2	 	
TCS shall correct the outstanding defects as soon as reasonably can be
expected, to be agreed upon between the Parties in relation to each defect
(and, failing agreement, within [*] following incorporation
into H3G’s service to Subscribers); and
 
	13.8.3	 	
H3G shall retain a reasonable proportion of the Milestone Payment to be
paid upon full Acceptance of the relevant Deliverables.
 
	14	 	
Assistance Upon Termination
 
	14.1	 	
At the expiration or termination of any Work Package, TCS will
co-operate, in good faith, and, except where termination is due to TCS’
default, at H3G’s expense with H3G and the H3G Service Providers to assist
with the orderly transfer of the Services provided by TCS under the Work
Packages to a new H3G Service Provider or (at H3G’s request) to any H3G
Affiliate. This shall include providing H3G and the relevant H3G
Affiliate and their agents, contractors and consultants, as necessary,
with all services reasonably necessary to accomplish a smooth transition
and to allow for continued usage of the Location Server System.
 
	15	 	
Force Majeure
 
	15.1	 	
If either Party is affected by an Event of Force Majeure under a Work
Package it shall immediately notify the other Party in writing of the
matters constituting the Event of Force Majeure and shall keep that Party
fully informed of their continuance and of any relevant change of
circumstances whilst such Event of Force Majeure continues.
 
	15.2	 	
The Party affected by an Event of Force Majeure shall take all reasonable
steps to minimise the effects of the Event of Force Majeure on the
performance of its obligations under each Work Package or this Agreement.
 
	15.3	 	
Save as provided in this Clause 15.3 an Event of Force Majeure shall not
entitle either Party to terminate a Work Package or this Agreement.
Neither Party shall be in breach of this Agreement, or otherwise liable to
the other, by reason of any delay in performance, or non-performance of
any of its obligations due to an Event of Force Majeure provided that no
delay or failure by a sub-contractor or supplier of TCS will relieve TCS
from liability for any such delay or failure except where that delay or
failure would have constituted an Event of Force Majeure if the
sub-contractor or supplier concerned had been a party to this Agreement.
 

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	15.4	 	
If the Party affected by an Event of Force Majeure fails to comply with
its obligations under Clauses 15.1 and 15.2 above then no relief for an
Event of Force Majeure, including the provisions of Clause 15.3, shall be
available to it and the obligations of each Party shall continue in force.
 
	15.5	 	
If the Event of Force Majeure continues for longer than 1 month the party
not affected by the Event of Force Majeure may at the expiry of such 1
month period, provided the Event of Force Majeure is still subsisting,
terminate the relevant Work Package (together with any others which have
been or are adversely affected by such delays to the relevant Work
Package) forthwith by giving notice in writing to the affected party.
 
	16	 	
Insurance
 
	16.1	 	
Without limiting its other obligation under this Agreement or otherwise
at law TCS shall effect and maintain at its own expense the following
insurance policies (the “Insurance Policies”):
 
	16.1.1	 	
Professional Indemnity Insurance in relation to any negligent act error
or omission or any breach of duty in the conduct and execution of
professional activities and duties undertaken by TCS or any person for
whom they are responsible pursuant to this Agreement. This insurance
shall be effected in an amount of not less than [*] per each
occurrence for a period from the Commencement Date until 3 years after
Commercial Production. The excess shall not exceed [*] in respect
of any one occurrence or series of occurrences consequent upon or
attributable to one original cause. This insurance shall not contain a
retroactive date later than the date of the appointment of TCS or the date
upon which TCS commenced work whichever is the earlier; and
 
	16.1.2	 	
Third Party Insurance covering the legal liability of TCS and H3G and
H3G Affiliates for injury to persons or loss or damage to property arising
out of the execution of the works or the performance of this Agreement.
The policy should contain a “Cross Liability Clause” extended to cover
unintentional breach or infringement or unauthorised use of Intellectual
Property Rights and the amount of such insurance shall not be less than
[*] in respect of any one occurrence.
 
	16.2	 	
The terms and conditions of the Insurance Policies and choice of insurer
shall be approved by H3G and such approval shall not be unreasonably
withheld or delayed. If TCS shall fail to effect and keep in force the
Insurance Policies or provide copies of the Insurance Policies or premium
receipts to H3G, then H3G may effect and keep in force any such insurance
and pay such premiums as may be necessary for that purpose and recover
from TCS whether by way of deduction or otherwise.
 
	16.3	 	
If the limit of liability under any Insurance Policies is subject to an
annual aggregate, TCS undertakes to reinstate such limit of liability
immediately in the event that such limit is exhausted for any reason.
 
	16.4	 	
H3G and H3G Affiliates shall be named as an Insured Party under the
Insurance Policies and TCS shall procure that each insurer agrees to waive
any rights of subrogation against H3G and H3G Affiliates.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	16.5	 	
TCS shall procure that the Insurance Policies shall contain a worldwide
jurisdiction clause.
 
	17	 	
Change Control Procedure
 
	17.1	 	
No Change shall be binding on the parties unless the requirements of the
Change Control Procedure have been satisfied. Until a Change is formally
agreed to by both parties, the parties shall continue to perform their
respective obligations without taking the Change into account.
 
	17.2	 	
Each party shall bear its own costs of the preparation and negotiation of
Changes.
 
	18	 	
Dispute Resolution
 
	18.1	 	
It is the intention of the parties to settle amicably all disagreements
and differences of opinion on matters of procedure and management arising
out of each Work Package by conference and negotiations, and that the
following procedure shall be followed prior to the serving of a claim form
(as stipulated in this Agreement) or in relation to any matter of dispute
between the parties concerning matters of procedure and management. In
the event that the parties are unable to resolve any disagreement or
difference of opinion arising out of this Agreement and/or any Work
Package, the parties agree to dispose of the matter thus:
 
	18.1.1	 	
the Project Managers of both parties shall meet at H3G’s Designated
Premises to attempt resolution. Should they not meet and resolve the
matter within two (2) Business Days of the time at which either Party
convenes a meeting to resolve the matter, then
 
	18.1.2	 	
the matter shall be promptly referred to the Steering Committee to
attempt resolution. Should the Steering Committee not meet and resolve
the matter within two (2) Business Days of the referral under this Clause
18.1.2, then
 
	18.1.3	 	
the matter promptly shall be referred to the Group IT Director of H3G
and the Chief Executive Officer of TCS for resolution. If the Group IT
Director of H3G and the Chief Executive Officer of TCS are not able to
resolve the matter within two (2) Business Days of the referral under this
Clause 18.1.3, then
 
	18.1.4	 	
the Parties shall consider then and on an ongoing basis whether or not
it would be suitable to refer the matter in dispute to an expert appointed
by the Parties or at any to enter into an alternative dispute resolution
procedure with the assistance of a mediator appointed by the Parties or,
in default of agreement, by the President for the time being of the
British Computer Society.
 
	18.2	 	
If the parties have not resolved the dispute or referred the matter as
contemplated by Clause 18.1.4 within fifteen (15) Business Days of expiry
of the period set out in Clause 18.1.3, then (subject to the ongoing
obligation in Clause 18.1.4) the dispute resolution process shall be
deemed to have been exhausted in respect of the matter in

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
dispute and such dispute shall be referred to and finally resolved by
arbitration under the International Chamber of Commerce Rules, which Rules
are hereby deemed to be incorporated by reference into this Clause. The
seat, or legal place, of arbitration shall be London, England. The
language to be used in the arbitral proceedings shall be English. The
governing law of the contract shall be the substantive law of England.
 
	18.3	 	
For the avoidance of doubt, this Clause 18 shall not prevent either Party
from seeking injunctive relief in the case of any breach or threatened
breach by the other of any obligation of confidentiality or any
infringement by the other of the first-named Party’s Intellectual Property
Rights or from commencing any proceedings where this is necessary to avoid
any loss of a claim due to the rules on limitation of actions.
 
	19	 	
Termination
 
	19.1	 	
H3G’s right to terminate the Agreement on notice
 
	19.1.1	 	
Except for the Initial Global Work Package, H3G may terminate this
Agreement at will by serving not less than two months’ prior written
notice on TCS.
 
	19.1.2	 	
If H3G serves notice terminating this Agreement at will pursuant to
Clause 19.1.1 then H3G and, where relevant, each H3G Affiliate shall be
deemed simultaneously to have served notice terminating each Work Package
to which it is a party at the time specified in H3G’s notice. Termination
of each such Work Package will be subject to a termination charge as if
each such Work Package had been terminated separately under Clause 19.2.
 
	19.2	 	
H3G’s right to terminate Work Packages on notice
 
	19.2.1	 	
With the exception of the Initial Global Work Package notwithstanding
any provision to the contrary in any Work Package or any other document
(other than this Agreement) which forms part of a Work Package, H3G shall
be entitled to terminate any Work Package by the giving of fifteen (15)
Business Days written notice to TCS to expire at any time upon which H3G
will pay TCS for the Services rendered by TCS up to the date of
termination of the respective Work Package save that it shall have no such
obligation where such termination follows termination by H3G of the
Licence Agreement for breach of TCS. If H3G terminates any Work Package
by notice under this Clause 19.2.1 then H3G shall have no further
liability to TCS after the date of termination of the respective Work
Package other than those specified in this Clause 19.2.1.
 
	19.2.2	 	
In the event that H3G terminates a Work Package for convenience, H3G
will pay TCS the “Break Fee” (as defined in Clause 19.2.3);
 
	19.2.3	 	
Subject to agreement to the contrary in the relevant Work Package, the
relevant Data Centre Installation Fixed Fee, the Test Installation Fixed
Fees and the Pre-Production Installation Fixed Fee shall be divided into
four equal amounts (using the assumption that both the relevant Fixed Fee
and the time elapsed from the date TCS commences providing the Services
until the date TCS were likely to finish providing the Services were
divided by four quarters (“Quarter”). In the event H3G gives notice to
terminate

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
for convenience, H3G shall pay the element of the Fixed Fee for that
Quarter and all previous Quarters together with the Charges paid (or due
to be paid) by H3G for the relevant Third Party Software, subject to TCS’
duty to attempt to redeploy such Third Party Software and otherwise
mitigate its incurred costs and after deducting any costs TCS can
actually recover (the “Break Fee”).
 
	19.2.4	 	
For the avoidance of doubt, H3G shall be entitled to terminate any
extant Work Package pursuant to Clause 19.2.1.
 
	19.3	 	
Termination of Work Package for cause by either Party.
 
	19.3.1	 	
Each Party shall have the right without prejudice to its other rights or
remedies, to terminate any Work Package immediately by written notice if
the other Party:

	 	 	 
	(a)	 	
is in material or persistent breach of any of its obligations
under the Work Package in question and either that breach is
incapable of remedy or the other Party shall have failed to remedy
that breach within thirty (30) days after receiving written notice
requiring it to remedy that breach; or
 
	(b)	 	
is unable to pay its debts (within the meaning of section 123
of the Insolvency Act 1986) or an order is made or a resolution
passed for the its liquidation, winding-up or dissolution (otherwise
than for the purposes of a solvent amalgamation or reconstruction)
or an administrative or other receiver, manager, trustee,
liquidator, administrator or similar officer should be appointed
over it or all or any substantial part of its assets or any other
steps are taken or negotiations commenced by it or any of its
creditors with a view to proposing any kind of composition,
compromise or arrangement involving it and any of its creditors or
anything analogous to the foregoing shall occur in any applicable
jurisdiction.

	 	 	 
	19.3.2	 	
For the purpose of Clause 19.3.1, but without limitation, TCS shall be
deemed to be in material breach of a Work Package, and such breach to be
incapable of remedy in the event that TCS fails to achieve the Acceptance
of the Location Server System or any component part thereof on the second
repeat of the Acceptance Tests.
 
	19.3.3	 	
H3G shall have the right, without prejudice to its other rights or
remedies, to terminate a Work Package immediately by written notice to
TCS, if TCS undergoes a change of control (as defined in Section 574(2) of
the Capital Allowances Act 2001) and this change does not result in
control passing to an Affiliate of TCS.
 
	19.3.4	 	
H3G shall have the right, without prejudice to its other rights or
remedies, to terminate a Work Package if TCS has failed to achieve a
Milestone by the specified date, H3G has given notice of its intention to
terminate should the Milestone not be achieved by a date specified in such
notice (to be no earlier than 7 calendar days after the date of the
notice) and TCS has failed to achieve the Milestone within such period.
 
	19.3.5	 	
For the purpose of Clause 19.3.1, TCS may terminate this Agreement for
non-payment by H3G only by giving at least 60 days’ notice to H3G where
H3G has failed to pay an amount which is:

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	(a)	 	
undisputed, due and payable;
 
	(b)	 	
[*]
 
	(c)	 	
overdue for a period of at least 30 days; and
 
	(d)	 	
one for which a demand has been made by TCS in writing to
H3G, provided that the demand clearly states that the amount has
been overdue for a period of 30 days and states TCS’s intention to
terminate this Agreement at the end of the 60 day period following
service of the demand if the demand is not met.

	 	 	 
	 	 	
Country basis of termination
 
	19.4	 	
In the event that an H3G Affiliate by its acts or omissions causes H3G to
be in material breach of this Agreement or a Work Package (the “Defaulting
Affiliate”), TCS’s rights to terminate pursuant to Clause 19.3.1 above
will only extend to such Local Work Packages as have been entered into by
the Defaulting Affiliate and in all other respects H3G’s (and other H3G
Affiliates’) rights shall remain unaffected.
 
	 	 	
Consequences of termination
 
	19.5	 	
Termination of this Agreement or any Work Package will not affect the
continuation of any provision (including but not limited to Clause 11),
which is intended to, or capable of surviving termination.
 
	19.6	 	
Termination of this Agreement, other than under Clause 19.1, shall not
operate to terminate Local Work Packages (though for the avoidance of
doubt the same event may be the basis of termination of this Agreement by
H3G and of termination of Local Work Packages by H3G Affiliates).
 
	20	 	
Limitation of Liability
 
	20.1	 	
Nothing in this Agreement shall exclude or limit either Party’s liability
for (i) the tort of deceit; (ii) death or personal injury caused by its
negligence (as defined in section 1 of the Unfair Contract Terms Act
1977); (iii) any breach of the obligations implied by section 12 Sale of
Goods Act 1979 or section 2 Supply of Goods and Services Act 1982; (iv)
any liability which cannot be excluded by law; (v) or in the case of TCS,
the indemnity set out in Clauses 4.1 to 4.5 of the Licence Agreement.
 
	20.2	 	
Subject to Clause 20.1 and to the extent that the law permits, each
Party’s maximum liability per event shall in no event exceed [*]% of the
Estimated Total Spend.
 
	20.3	 	
TCS agrees that any and all claims by TCS against H3G or its Affiliates
will be brought by TCS solely against H3G subject always to the limits on
liability above and TCS will not bring any claims directly against any H3G
Affiliate for damages or any liquidated sums.
 
	20.4	 	
Clause 20.3 is without prejudice to TCS’s ability to seek an injunction
against an H3G Affiliate.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	21	 	
Partnership
 
	 	 	
Each Party is an independent contractor. Nothing in this Agreement or
any Work Package shall render either Party an agent of the other save to
the extent that a relationship of agency is expressly stated to be
created in the relevant Work Package.
 
	22	 	
Compliance
 
	 	 	
Each party shall perform its obligations under this Agreement in a manner
which enables the other party’s to comply at all times with all
applicable laws, regulations and rules applicable to the other party’s
business.
 
	23	 	
Notices and Address for Service
 
	23.1	 	
Any notice, consent or the like to be given by either Party to the other
in connection with this Agreement shall be in writing and sent by special
delivery (if to an address in the United Kingdom) or by air mail (if to an
address not in the United Kingdom) to the address of the recipient set out
below or to such other address as shall for the purpose be notified in
writing by the recipient or shall be delivered by hand or by courier or
sent by facsimile transmission to the number set out below. Any change of
address by any Party during the term of this Agreement or any Work Package
shall be notified promptly to the other Party in writing by special
delivery or air mail.
 
	23.2	 	
The initial addresses and fax numbers for the Parties or their respective
agents for the purpose of service of proceedings in England and Wales and
for the purposes of Clause 23.1 are:

	 	 	 	 	 
	(a)	 	
TCS	 	 
	 	 	
Address:
	 	275 West Street, Annapolis, MD 21401
	 	 	
Fax no:
	 	001-410-280-1048
	 	 	
For the attention of:
	 	Legal Department
 
	(b)	 	
H3G	 	 
	 	 	
Address:
	 	L-1728,
	 	 	 	 	7 Rue du Marche aux Herbes,
	 	 	 	 	Luxembourg
 
	 	 	
With a copy to:
	 	c/o Hutchison Whampoa Limited
	 	 	 	 	22nd Floor, Hutchison House
	 	 	 	 	10 Harcourt Road
	 	 	 	 	Central, HONG KONG
 
	 	 	
For the attention of:
	 	Company Secretary
	 	 	
Fax
	 	+852 2128 1778

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	23.3	 	
H3G irrevocably appoints Hutchison Whampoa Agents (UK) Limited of 9 Queen
Street, Mayfair, London, W1X 7PH as its agent to receive and acknowledge
on its behalf service of any writ, summons, order, judgment or other
notice of legal process in England. If for any reason the agent named
above (or its successor) no longer serves as agent of H3G or for this
purpose, H3G shall promptly appoint a successor agent and notify TCS
thereof.
 
	23.3A	 	
TCS irrevocably appoints Salans Secretarial Services Limited as its
registered office from time to time (currently Clements House, 14-18
Gresham Street, London, EC2V 7NN) quoting reference to RLT/0201111.2 as
its agent to receive and acknowledge on its behalf service of any writ,
summons, order, judgment or other notice of legal process in England. If
for any reason the agent named above (or its successor) no longer serves
as agent of TCS for this purpose, TCS shall promptly appoint a successor
agent and notify H3G thereof. Until H3G receives such notification, it
shall be entitled to treat the agent named above (or its successor) as the
agent of the Guarantor for the purposes of this clause. TCS agrees that
any such legal process shall be sufficiently served on it if delivered to
such agent for service at its address for the time being in England
whether or not such agent gives notice thereof to TCS.
 
	23.4	 	
A notice, demand or other communication served by special delivery shall
be deemed duly served on an addressee in the United Kingdom forty-eight
hours (disregarding days which are not Business Days) after posting, a
notice, demand or other communication served by air mail shall be deemed
duly served on an addressee in a country other than the United Kingdom
five Business Days after posting and a notice, demand or other
communication sent by facsimile transmission shall be deemed, in the
absence of proof of earlier receipt, to have been served at the time of
transmission (save that if the transmission occurs after 6.00 p.m. on a
Business Day or on a day other than a Business Day the notice, demand or
other communication shall be deemed to have been served at 8.30 a.m. on
the next Business Day following transmission) and in proving service of
the same it will be sufficient to prove, in the case of a letter, that
such letter was left at or delivered to the correct address of the party
to be served as provided in this Clause or, in the case of special
delivery or air mail, properly addressed to the address of the Party to be
served given in this Clause and placed in the post prepaid and, in the
case of the facsimile transmission, that such facsimile was duly
transmitted to the number of the Party to be served given in this Clause
and an electronic acknowledgment was received. For the purposes of this
Clause 23 alone “Business Day” shall mean any day (other than a Saturday
or Sunday) on which the banks are ordinarily open for business in the
country to which the notice is being sent.
 
	24	 	
Entire Agreement
 
	 	 	
This Agreement together with the Schedules constitutes the entire
agreement between the Parties relating to the subject matter covered and
supersedes any previous agreements, arrangements, undertakings or
proposals, written or oral, between the Parties in relation to such
matters.
 
	25	 	
Waiver
 
	25.1	 	
No variation or waiver of any of the terms hereof shall be valid unless
in writing signed by or on behalf of the Parties.

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	25.2	 	
No relaxation, delay, forbearance or indulgence of either Party in
exercising or enforcing nor any failure by either Party to exercise or
enforce any rights conferred upon it by this Agreement shall be deemed a
waiver of any such right or operate so as to bar the exercise or
enforcement thereof at any time or times thereafter.
 
	26	 	
Severability
 
	 	 	
The invalidity or unenforceability of any provision (or part of a
provision) of this Agreement shall not affect or prejudice the validity
or enforceability of the remainder of this Agreement.
 
	27	 	
Assignment
 
	 	 	
Neither Party shall assign, transfer or otherwise dispose of its rights
or obligations under this Agreement without the prior written consent of
the other Party such consent not to be unreasonably withheld or delayed
(except where such assignment, including partial assignment, is to an H3G
Affiliate in which case no such consent shall be required).
 
	28	 	
Governing Law and Jurisdiction
 
	 	 	
The construction, validity and performance of this Agreement shall be
governed by the laws of England and Wales.
 
	29	 	
Amendments
 
	29.1	 	
Except as otherwise provided herein, no addition, amendment or
modification of this Agreement shall be effective, unless it is in writing
and signed by a duly authorised signatory of each Party.

     
        
In witness thereof the Parties have executed this Agreement on the date stated
above.

	 	 	 	 	 
	SIGNED by	 	 	
	)
	for and on behalf of	 	 	
	)
	HUTCHISON WHAMPOA	 	 	
	) /s/
	3G IP S.A.R.L.	 	 		)
 
	SIGNED by	 	 	
	)
	for and on behalf of	 	 	
	)
	TELECOMMUNICATION SYSTEMS INC.	 	 	
	) /s/

Note: Information in this document marked with a “[*]” has been omitted and
filed separately with the U.S. Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

Change Control Procedure

	 	 	 
	1.1	 	
H3G and TCS shall discuss Changes proposed by either party and such
discussion shall result in either:

	 	 	 
	1.1.1	 	
a written request for a Change by H3G; or
 
	1.1.2	 	
a written recommendation for a Change by TCS
 

	 
	or, if neither party should wish to submit a request or recommendation,
the proposal for the Change will not proceed

	 	 	 
	1.2	 	
Where a written request for a Change is received from H3G, TCS shall,
unless otherwise agreed, submit a Change Control Note (“CCN”) to H3G
within 5 Business Days.
 
	1.3	 	
A written recommendation for a change by TCS shall be submitted as a CCN
direct to H3G at the time of such recommendation.
 
	1.4	 	
Each CCN shall contain:

	 	 	 
	1.4.1	 	
the title of the Change;
 
	1.4.2	 	
the originator and the date of the request or recommendation
for the Change;
 
	1.4.3	 	
the reason for the Change;
 
	1.4.4	 	
full details of the Change including any specifications;
 
	1.4.5	 	
a timetable for implementation together with any proposals
for acceptance of the Change;
 
	1.4.6	 	
the impact, if any, of the Change or other aspects of the
Work Package in question (and any other Work Package which may be
affected) including but not restricted to:-
 
	(a)	 	
the Project Plan;
 
	(b)	 	
the Charges;
 
	(c)	 	
the resources required;
 
	(d)	 	
the Project Staff.

	 	 	 
	1.4.7	 	
the date of expiry for acceptance by H3G of the CCN (which shall not be
less than 30 Business Days from receipt of the CCN by H3G); and
 
	1.4.8	 	
provision for signature by H3G and TCS.

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	1.5	 	
For each CCN submitted H3G shall, within the period for acceptance of the
CCN advised pursuant to Clause 1.4.7 of this Schedule 2:

	 
	1.5.1      allocate a sequential number to the CCN;
 
	1.5.2      evaluate the CCN and as appropriate either:-

	 	 	 
	(a)	 	
request further information whereupon the period
for acceptance of the CCN shall be deemed to have been
extended to 15 days following the provision of such
information from TCS to H3G;
 
	(b)	 	
(i) approve the CCN; or
 
	(c)	 	
(ii) notify TCS of the rejection of the CCN.

	 
	1.5.3 if approved, arrange for two copies of the approved CCN to be
signed by or on behalf of H3G and TCS. The signing of the CCN will
signify acceptance of a Change by both H3G and TCS

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

H3G Affiliates

[*]

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

Initial H3G Affiliates

[*]

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

Licence Agreement

DATED as of 31st January 2002

	 	 	 
	(1)	 	
HUTCHISON WHAMPOA 3G IP S.A.R.L.
	
 

	(2)	 	
TELECOMMUNICATION SYSTEMS INC.

LICENCE AGREEMENT

Baker & McKenzie

100 New Bridge Street

London

EC4V 6JA

Tel: 020 7919 1000

Fax: 020 7919 1999

Ref: HRS/RJH/PLG

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

This Licence Agreement is made on the [ ] day of January 2002 (“Licence
Agreement”)

BETWEEN:

	 	 	 
	1.	 	
HUTCHISON WHAMPOA 3G IP S.àR.L. a company incorporated under Luxembourg
law having its registered office at L-1728 Luxembourg, 7, Rue du Marche
aux Herbes, Luxembourg (“H3G”); and
 
	2.	 	
TELECOMMUNICATION SYSTEMS INC. a Maryland corporation having its
principal place of business at 275 West Street, Annapolis, Maryland, 21401
(“TCS”); each a “Party”, together referred
to as the “Parties”.

WHEREAS:

	 	 	 
	(A)	 	
Hutchison 3G UK Limited issued a Request for Quotation (the
“Initial RFQ”) entitled “Request for Quotation for Location Services
(LCS) System” dated 17 August 2001 and a further Request for
Quotation entitled “H3G Technical and Functional Requirements for
the Location Service XLP” and dated October 18, 2001 (the “Second
RFQ”) for the design, development, integration, implementation and
support of the Location Server System (as such term is defined in
Clause 1.1)(the Initial RFQ and the Second RFQ being together the
“RFQ”) and which is set out in Schedule 6 to the Services
Integration Agreement.
 
	(B)	 	
In response to the RFQ, TCS issued a Response to RFQ dated
25th October 2001 comprising the documents set out in Schedule 7 to
the Services Integration Agreement (the “Response”).
 
	(C)	 	
A series of workshops were held between TCS and H3G to
confirm the technical and functional requirements of the Location
Server System and to define the required interfaces (which were
documented in the Interface Control Documents). As a result of the
workshops, the parties agreed the baseline functional requirement
for the Location Server System entitled “H3G Technical and
Functional Requirement for the Location Server XLP, Revision 1.0
(“Technical and Functional Requirements Document”) dated January 12,
2002. The Technical and Functional Requirements Document forms part
of the Functional Specification.
 
	(D)	 	
In reliance on the statements made by TCS in the Response and
in reliance on TCS’ skill, knowledge and experience, including but
not limited to the experience and track record of TCS in the IT,
computing and software industries, H3G has decided to use the
Supplied Software.
 
	(E)	 	
TCS is the unencumbered legal and beneficial owner of the
worldwide intellectual property rights in the TCS Standard Software
and has the unencumbered legal and beneficial rights necessary to
grant H3G and the H3G Licensed Affiliates the licence to use the
Supplied Software and Documentation. H3G wishes to use the Supplied
Software and TCS has agreed to grant a non-exclusive licence to H3G
to use the Supplied Software

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
(as defined below) on the terms and conditions set out in this
Licence Agreement.
 
	(F)	 	
Contemporaneously with execution of this Licence Agreement,
TCS and H3G have entered into an agreement concerning design,
development, implementation and support of or to TCS’s Software
(“Services Integration Agreement”).
 
	(G)	 	
It is the intention of the Parties that, once the Supplied
Software has been accepted by H3G, each H3G Affiliate (as defined
below) will decide whether or not to implement the Supplied
Software.
 

	 
	IT IS AGREED:

	 	 	 
	1	 	
Definitions

	 
	In this Licence Agreement the following words and expressions shall have
the following meanings:
 
	“Committed Licence Revenue” means the sum of [*] pounds sterling ([*]);
 
	“Committed Licence Revenue Tranche” means the sum of [*] pounds sterling
([*]);
 
	“Error” means any characteristic of the Supplied Software or the
Documentation that means that the Supplied Software or the Documentation
is not compliant with the warranties set out in Clauses 4.6.2 to 4.6.7;
 
	"Fees” means the fees payable in respect of the Supplied Software as set
out in Schedule 2 to this Licence Agreement;
	
 

	“H3G Affiliate” means:
 

	 	 	 
	 	 	
any company or entity which from time to time is controlled
directly or indirectly by HWL, or any successor or assignee
company of HWL, (where “control” or “controlled” has the meaning
given to it in section 574(2) of the Capital Allowances Act
2001); or
 
	 	 	
any company or entity in which from time to time HWL (or
any successor or assignee company of HWL) holds directly or
indirectly 15% or more of the shares or voting power; or
 
	(c)	 	
the companies or entities listed in Schedule 4
(List of H3G Affiliates) as this may be amended by H3G from
time to time by notice in writing to TCS;

	 
	“HWL” means Hutchison Whampoa Limited, a company incorporated under the
laws of Hong Kong;

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 
	“Initial Licence Fee” means [*] pounds sterling ([*]) constituting
twenty-five per cent of the Committed Licence Revenue;
 
	"Modification” means any change or amendment to, or upgrade or New
Version of, the Supplied Software or any New Release provided to H3G;
 
	"New Release” means any new release of any Supplied Software, which from
time to time is publicly marketed and offered for licensing by TCS or any
third party in the course of their normal business;
 
	"New Version” means the updating of the Supplied Software with versions
that contain error fixes and/or functional changes;
 
	"Notional Committed Subscriber Number” has the meaning given to it in
Section 5 of Schedule 2;
 
	"Notional Per Subscriber Charge” means, the notional charge per
Subscriber set out in Section 5 of Schedule 2;
 
	“Per Subscriber Charge” means the amount of money payable by H3G for
additional Subscribers as set out in Schedule 2;
 
	“Services Integration Agreement” means the agreement between the parties
of the same name executed on the same day as this Agreement;
 
	“Subscriber” means a subscriber represented by a USIM card which is
registered on the networks of H3G or any H3G Affiliates which have
accepted the Location Server System into live production and which have
generated revenue for H3G [*] as notified by H3G to TCS, which notification shall be final
and conclusive, in the absence of manifest error;
 
	Subscriber Based Revenue” means the fees payable to TCS in relation to
the number of Subscribers utilising the Location Server System as
measured by H3G pursuant to Clause 7.3;
 
	“Supplied Software” means the TCS Standard Software, the Customised
Software Developments and the Third Party Software together with, once
provided to H3G, all Modifications to the same;
 
	“TCS Affiliate” means any company or entity, which from time to time is
controlled directly or indirectly by TCS (or any successor or assignee
company of TCS) or by any company by whom TCS is itself controlled
directly or indirectly (where “control” or “controlled” has the meaning
given to it in section 574(2) of the Capital Allowances Act 2001);
 
	“TCS Standard Software” means the computer programs in object code form
together with any accompanying Documentation which are the proprietary
products of TCS and which are listed in Schedule 1 to this Licence
Agreement as this may be amended from time to time, following agreement
between the parties so to amend in accordance with the terms of this
Licence Agreement;

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
“Territory” means, in relation to an H3G Affiliate, the country or
territory in which such H3G Licensed Affiliate is located;
 
	 	 	
"Third Party Software” means software which TCS is required to procure
from third parties pursuant to the terms of any Work Package under the
Services Integration Agreement or which TCS actually procures from third
parties for the purpose of providing Services under such Work Packages
entered into under the Services Integration Agreement including that
listed within and described as such within Schedule 1 to this Licence
Agreement; and
 
	 	 	
“Virus” means any code which is designed to disrupt, disable, harm, or
otherwise impede in any manner, including aesthetic disruptions or
distortions, the operation of the Supplied Software, or any other
associated hardware, software, firmware, computer system or network, or
would disable the Supplied Software or impair in any way its operation
based on the elapsing of a period of time, exceeding an authorised number
of copies, advancement to a particular date or other numeral, or that
would permit TCS or any other person to access the Supplied Software to
cause such disablement or impairment, or which contains any other similar
harmful, malicious or hidden procedures, routines or mechanisms which
would cause such programs to cease functioning or to damage or corrupt
data, storage media, programs, equipment or communications, or otherwise
interfere with operations. It includes, without limitation, computer
programs commonly referred to as worms or Trojan horses.
 
	1.2	 	
Unless otherwise defined above or elsewhere in this Licence Agreement
capitalised words shall have the meaning attributed to them in the
Services Integration Agreement.
 
	1.3	 	
Words importing the singular shall include the plural and vice versa;
words denoting persons shall include bodies corporate and unincorporated
associations of persons and vice versa.
 
	1.4	 	
References to Clauses and Schedules are, unless otherwise stated,
references to the clauses of and schedules to this Licence Agreement.
 
	1.5	 	
Reference to any statute or statutory provision is, except where stated
otherwise, to a United Kingdom statute or statutory provision. Such
reference includes any consolidation or re-enactment, modification or
replacement of the same, any statute or statutory provision of which it is
a consolidation, re-enactment, modification or replacement and any
subordinate legislation in force under any of the same from time to time.
 
	1.6	 	
Clauses 1.1 to 1.5 apply unless the contrary intention appears.
 
	1.7	 	
The headings in this Licence Agreement do not affect its interpretation.
 
	1.8	 	
The Schedules to this Licence Agreement form part of it.
 
	1.9	 	
In the event of any conflict or ambiguity within or between any
provisions of this Licence Agreement and the Services Integration
Agreement then the order of precedence shall be, in descending order, as
follows:
 

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	(a)	 	
the main terms and conditions, Clauses 1-29 of the Services
Integration Agreement;
 
	(b)	 	
the Schedules to the Services Integration Agreement;
 
	(c)	 	
the main terms and conditions, Clauses 1-18 of this Licence
Agreement;
 
	(d)	 	
the Schedules to this Licence Agreement.

	 	 	 
	2.	 	
Treatment of Licences/Intellectual Property Rights
 
	2.1	 	
H3G Licensed Affiliates are intended beneficiaries of this Licence
Agreement and may enforce the terms of this Licence Agreement under the
terms of the Contracts (Rights of Third Parties) Act 1999. However, the
Parties to this Licence Agreement may rescind, vary, amend or terminate
this Licence Agreement without the consent of any H3G Affiliate,
notwithstanding that an H3G Affiliate has relied on, or indicated assent
to, any term of this Licence Agreement. For the avoidance of doubt, all
the terms of this Licence Agreement are intended to confer a benefit on
each H3G Licensed Affiliate.
 
	2.2	 	
Except as provided in Clause 2.1, a person who is not a party to this
Licence Agreement has no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce any term of this Licence Agreement but this
does not affect any right or remedy of an H3G Affiliate which exists or is
available apart from the Contracts (Rights of Third Parties) Act 1999.
 
	2.3	 	
In the event of any breach of this Licence Agreement by TCS, TCS shall be
liable for not just the losses, damages and expenses suffered or incurred
by H3G but also for any such losses, damages and expenses suffered or
incurred by any H3G Licensed Affiliate for which it would have been liable
had they been losses, damages or expenses of H3G. This Clause 2.3 applies
mutatis mutandis to any loss or damage suffered by any H3G Licensed
Affiliate by reason of any tort, delict or other act or omission of TCS
which gives rise to liability of TCS to H3G (or were the loss or damage to
have been suffered by H3G would give rise to such liability) other than by
reason of the provisions of this Licence Agreement but related to the
subject matter of this Licence Agreement.
 
	2.4	 	
If, notwithstanding the provisions of Clauses 2.1 and 2.3, any H3G
Licensed Affiliate cannot for any reason recover the losses referred to in
Clauses 2.1 or 2.3 against TCS or finds itself in a less advantageous
position under the Contracts (Rights of Third Parties) Act 1999 than it
would have been had it been a party to the Licence Agreement, then the
provisions of Clause 2.3 shall be varied so as to read:
 
	 	 	
“H3G hereby declares itself trustee of the obligations, covenants and
indemnities given in this Licence Agreement by TCS to H3G and holds the
said obligations, covenants and indemnities upon trust for the absolute
benefit of the H3G Licensed Affiliates and TCS hereby covenants with H3G
(in its capacity as such trustee) that TCS shall perform each of the said
obligations, covenants and indemnities.”

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	2.5	 	
No proceedings may be brought by an H3G Affiliate against TCS without the
consent of H3G (which, if given, may be conditional upon or subject to
such procedural limitations or controls as H3G may impose in any case).
 
	2.6	 	
Proceedings may only be brought by TCS against H3G in relation to the
subject matter of this Licence Agreement. For the avoidance of doubt, no
proceedings may be brought by TCS against any H3G Licensed Affiliate.
 
	2.7	 	
At H3G’s discretion and upon notice by H3G to TCS of divestment and of
H3G’s desire to rely on the provisions of this Clause 2.7, any Divested
Business Unit shall be entitled to enjoy the benefit of this Licence
Agreement on the basis set out in this Clause 2.7 and on the basis set out
in the novation agreement which the Parties hereby undertake, upon such
divestment and notice, to enter into substantially in the form set out in
Schedule 5 with the Divested Business Unit or its owner.
 
	2.8	 	
Notwithstanding the provisions of Clause 2.7, TCS reserves the right not
to enter into a novation agreement with the companies or entities set out
in Schedule 17 to the Services Integration Agreement.
 
	2.9	 	
Any obligations of H3G may be validly discharged by any H3G Licensed
Affiliate and any rights of H3G may be exercised by any H3G Licensed
Affiliate (irrespective of the fact that the relevant term of the Licence
Agreement refers only to the Parties).
 
	2.10	 	
No reference to the enforcement of rights by H3G Licensed Affiliates
contained in this Licence Agreement include a right to terminate this
Licence Agreement.
 
	3.	 	
Licence and Term
 
	3.1	 	
In consideration of the Fees paid by H3G to TCS, TCS hereby grants to H3G
and H3G Licensed Affiliates a non-exclusive, perpetual, world-wide,
royalty-free licence (the “Licence”):

	 	 	 
	3.1.1	 	
to use the Supplied Software and allow use of the Supplied Software by
H3G and each H3G Affiliate on their respective networks, regardless of the
standard used (including, without limit, GSM 900, GSM 1800, UMTS, CDMA or
CDMA 2000) for their 2G, 2.5G and/or 3G subscribers;
 
	3.1.2	 	
to use the Documentation; and
 
	3.1.3	 	
in the circumstances envisaged in Clause 3.2(d), to develop, modify and
maintain the Supplied Software; and
 
	3.1.4	 	
to grant to any Authorised Sub-contractor (as defined in Clause 3.5) the
rights necessary to allow H3G to exercise the rights set out in Clause
3.5.

	 
	[*]

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	3.2	 	
For the purposes of this Licence Agreement “use” of the Supplied Software
or Documentation shall be defined as including, as appropriate, whether in
relation to object code or accompanying documentation:

	 	 	 
	(a)	 	
processing data of or for H3G or H3G Affiliates;
 
	(b)	 	
making sufficient copies of the Documentation as are
necessary for H3G and H3G Affiliates;
 
	(c)	 	
making sufficient copies for back-up and archival use;
 
	(d)	 	
developing, modifying and maintaining the Supplied Software
in the event of any of the matters described at Clause 6.1
occurring; and
 
	(e)	 	
for the purpose of operating the Supplied Software and/or in
circumstances envisaged in Clause 3.5 granting any Authorised
Sub-contractor a sub-licence to use, develop, modify and maintain
the Supplied Software.

	 	 	 
	3.3	 	
For the avoidance of doubt, use of the Supplied Software will include use
as a minimum for third generation, CDMA, second generation mobile system
users and users of legacy systems.
 
	3.4	 	
Except as otherwise permitted by law or otherwise stated in this Licence
Agreement and provided that the remainder of this Clause 3.4 is complied
with by TCS in a timely fashion, H3G may not in any way adapt, vary,
modify, transfer, reverse assemble, reverse compile or otherwise reverse
engineer the Supplied Software, in whole or in part. Upon request of H3G
or any H3G Affiliate TCS shall provide such information as is necessary to
allow such company to develop software, which is interoperable with such
Supplied Software.
 
	3.5	 	
H3G shall use reasonable endeavours to maintain accurate and up-to-date
records of the number and location of all copies of the Supplied Software.
 
	3.6	 	
Notwithstanding any statement in this Licence Agreement to the contrary,
H3G may permit use of the Supplied Software (or any part thereof) under
the terms of any agreement between H3G or any of the H3G Affiliates and
any agent or sub-contractor (“Contractor Agreement”) including, without
limitation, consultant programmers, system integrators, system
maintainers, outsourcing, or disaster recovery or other service TCSs
(“Authorised Sub-Contractors”). H3G shall be entitled to grant to such
Authorised Sub-Contractors a sub-licence to use the Supplied Software
solely to provide services (whether systems integration, maintenance,
outsourcing, disaster recovery or other support services) under such
Contractor Agreement in respect of the Supplied Software. Any such
sub-licence shall terminate on termination of the Contractor Agreement
(or, if later, on termination of any obligation to provide services
consequent upon termination of such Contractor Agreement)

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	3.7	 	
The parties acknowledge that the costs for Third Party Software were
based on the projections made by TCS in assessing what Third Party
Software would be required in order for the Supplied Software to deliver
the functionality set out in the Functional Specification. Subject to
Clause 4.2(i) of the Services Integration Agreement, in the event that
there is a material change to the amount of Third Party Software required
to deliver such functionality, the parties agree to evaluate the impact on
the element of the Fees that is referable to the Third Party Software and
the parties may, if the impact of the change of Third Party Software is
that there is a potential overall cost saving to H3G in procuring the
Location Server System, agree to adjust the price of the Third Party
Software accordingly.
 
	3.8	 	
[*]
 
	4.	 	
Warranties and Indemnities
 
	4.1	 	
TCS undertakes to defend H3G, all H3G Affiliates and its or their
directors, officers and employees from and against any claim or action
that the use or possession of the Supplied Software or any part of the
Supplied Software infringes the Intellectual Property Rights of a third
party (“IPR Claim”) and shall fully indemnify and hold harmless H3G and
all H3G Affiliates and its or their directors, officers and employees from
and against any losses, damages, costs (including legal fees) and expenses
incurred by H3G, any H3G Affiliates and/or its or their directors,
officers and employees or awarded by a court of competent jurisdiction
against H3G, any H3G Affiliate and/or its or their directors, officers and
employees, as a result of or in connection with such IPR Claim. TCS shall
be promptly informed by H3G or the relevant H3G Affiliate in writing and
furnished a copy of each communication, notice or other action relating to
the alleged infringement and H3G shall provide TCS with all reasonable
authority, information and assistance (at TCS’s expense) necessary for TCS
to defend or settle such an IPR Claim.
 
	4.2	 	
The foregoing indemnity shall remain in effect notwithstanding any
termination of this Licence Agreement.
 
	4.3	 	
If any IPR Claim is made or, in either Party’s reasonable opinion, is
likely to be made against H3G or any H3G Affiliate or its or their
directors, officers or employees, TCS shall, with minimum disruption to
H3G, the H3G Affiliates and their respective Subscribers at its option
promptly and at its own expense either:

	 	 	 
	(a)	 	
procure for H3G and the H3G Affiliates the right to continue
using and possessing the Supplied Software; or
 
	(b)	 	
modify or replace the infringing part of the Supplied
Software (without prejudice to the representations and warranties
made as to such Supplied Software and without diminishing or
curtailing any of the required functions

	 

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 
	or facilities or the performance of the Supplied Software) so as to
avoid the infringement or alleged infringement

	 	 	 
	4.4	 	
In the event that H3G or any H3G Affiliate does not believe (acting
reasonably) that TCS has complied with Clause 4.3 in relation to the
Supplied Software modification or replacement Supplied Software provided
by TCS pursuant to Clause 4.3 or the IPR Claim prevents the use by H3G or
any H3G Affiliate of the Supplied Software or any part thereof, H3G may
terminate this Licence Agreement and, without prejudice to its other
rights and remedies, receive a refund of all sums paid under the Licence
Agreement and the Services Integration Agreement (and all agreements
ancillary to it) to TCS by H3G or any H3G Affiliate.
 
	4.5	 	
TCS’s indemnity obligations hereunder shall not apply to the extent that
the infringement arises out of any modification of the Supplied Software
not made or authorised by TCS or the combination, operation or use of the
Supplied Software with such other programs or data (of which TCS was not
aware) if such infringement was directly caused by the combination,
operation or use of the Supplied Software with other programs or data.
 
	4.6	 	
TCS warrants that:
 
	4.6.1	 	
it has the right to enter into this Licence Agreement and to grant H3G
and the H3G Affiliates the licence to use the Supplied Software and
Documentation;
 
	4.6.2	 	
the Supplied Software will and shall continue to perform in accordance
with the functions and in the manner described in the Functional
Specification and any additional specifications provided for under the
Services Integration Agreement;
 
	4.6.3	 	
the Supplied Software is Date Compliant;
 
	4.6.4	 	
the Supplied Software is Currency Compliant;
 
	4.6.5	 	
the Supplied Software does not contain any Viruses;
 
	4.6.6	 	
the media on which the Supplied Software is provided will be free from
defects in workmanship and materials during normal use; and
 
	4.6.7	 	
the Documentation will describe in detail and in a completely
self-contained manner how H3G may access and use the Supplied Software
such that any reader of the Documentation can access, use and maintain all
of the functionality of the Supplied Software without the need for further
instruction.
 
	4.7	 	
If H3G or an H3G Affiliate notifies TCS in writing of an Error in the
Supplied Software or Documentation, TCS shall, at its own expense, use its
reasonable efforts to correct the Error. If it is unable to do so, TCS
shall replace the defective Supplied Software or Documentation (as the
case may be) with software or documentation of at least equivalent
functionality and performance that is free of Errors (without prejudice to
the other rights and remedies of H3G or the H3G Affiliate)

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	5.	 	
Payment and Delivery
 
	5.1	 	
TCS shall invoice H3G for the Fees in accordance with Schedule 2. H3G
shall pay all undisputed invoices within 30 (thirty) days of receipt of
each such invoice. The Fees are exclusive of VAT which where applicable
will be paid subject to receipt of an appropriate VAT invoice. All other
taxes shall be for the sole account of TCS.
 
	5.2	 	
TCS shall, where applicable, render VAT (or other similar tax) invoices
in accordance with the specific terms of the relevant Work Package (or
invoices compliant with applicable legislation from time to time) in
respect of the Charges together with all necessary substantiating
documents required by H3G. Invoices shall be sent to H3G in accordance
with the requirements set out in Clause 23 of the Services Integration
Agreement. In the absence of such invoices and documentation the Charges
shall be inclusive of VAT and all other similar taxes. If withholding
taxes are payable, H3G shall pay such amounts to the relevant authorities
in accordance with the applicable laws, and shall provide to TCS any and
all withholding tax certificates which H3G receives.
 
	5.3	 	
Invoices shall be sent to H3G in accordance with the requirements set out
in Clause 13 in relation to notices.
 
	5.4	 	
Upon signature of this Licence Agreement, or as H3G notifies TCS that it
requires further licences as provided for within Schedule 2 (Fees), TCS
shall deliver the Supplied Software and Documentation to H3G or to an H3G
Affiliate (at the location requested by H3G).
 
	6.	 	
Deposit of and access to Source Code; Maintenance and Support
 
	6.1	 	
TCS will deposit the source code of any software to be provided by TCS
under this Licence Agreement and any Documentation reasonably necessary
for the purpose of the proper day to day operation and maintenance of such
software (“Supporting Documentation”) in escrow and shall keep such source
code and Supporting Documentation up to date in accordance with an escrow
agreement with NCC Escrow International Limited in the form set out in
Schedule 6. The Parties shall upon the entering into of this Licence
Agreement or as soon as reasonably practicable thereafter enter into such
escrow agreement with NCC Escrow International Limited. The Escrow
Agreement shall, in any event, permit H3G and its Affiliates to have
access to the source code of such software in the following circumstances
and as set out in the escrow agreement at Schedule 6:

	 	 	 
	6.1.1	 	
if any of the events described in Clause 8.3 of this Licence Agreement
occurs or, in H3G’s opinion, is reasonably likely to occur in relation to
TCS; or
 
	6.1.2	 	
in the event of a material breach by TCS of its obligations under this
Licence Agreement, the Maintenance and Support Services Agreement, the
Services Integration Agreement or any Global Work Package agreed under the
Services Integration Agreement or the termination of any of the same on
account of TCS’s default; or

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	6.1.3	 	
if TCS or any other third person ceases to provide support and
maintenance services in respect of the Supplied Software; or
 
	6.1.4	 	
if TCS’s unrestricted cash balance falls below [*];
 
	6.1.5	 	
if a Force Majeure event as defined under the Maintenance and Support
Agreement prevents TCS from maintaining or supporting the Supplied
Software;
 
	6.1.6	 	
if an Event of Force Majeure entitles H3G to terminate this Agreement; or
 
	6.1.7	 	
if TCS fails to enter into the Maintenance and Support Services
Agreement when requested to do so by H3G.

	 	 	 
	6.2	 	
Upon entering into this Licence Agreement and in any event prior to 31st
January 2002 the parties shall enter into the Maintenance and Support
Services Agreement for maintenance and support of the Supplied Software.
 
	7.	 	
Committed Licence Revenue/Subscriber Calculations
 
	7.1	 	
The parties have agreed that, subject to termination prior to the expiry
of two years from Commercial Production, the Fees paid to TCS under this
Licence Agreement shall at least equal the Committed Licence Revenue.
 
	7.2	 	
TCS shall within 5 days of the Commencement Date (“Initial Payment Date”)
invoice H3G for the Initial Licence Fee. After payment of the Initial
Licence Fee, H3G shall subject to earlier termination prior to the expiry
of three years after Commercial Production and subject to Clause 7.6, pay
TCS [*] more payments of the Committed Licence Revenue Tranche, each
payment being due on a quarterly basis with the first Committed Licence
Revenue Tranche to be invoiced on Commercial Production.
 
	7.3	 	
In consideration for the Committed Licence Revenue, H3G are licensed to
use the Supplied Software for [*] Subscribers (the “Committed Subscriber
Level”). In the event that, as a result of the audit set out in Clause
7.4, H3G’s Subscriber levels exceed the Committed Subscriber Level prior
to payment of 100 percent of the Committed Licence Revenue, H3G shall pay
the balance remaining of the Committed Licence Revenue and then shall
continue to pay for additional Subscribers in accordance with the Per
Subscriber Charge.
 
	7.4	 	
H3G shall, on an annual basis, conduct an annual audit of the number of
third-generation Subscribers who have generated revenue for an H3G
Licensed Affiliate in the ninety calendar days prior to the conduct of the
audit (the “Report”). H3G shall provide TCS with an independent auditor’s
certificate that verifies the number of Subscribers set out in the Report.
 
	7.5	 	
On production of the Report, H3G shall calculate the Fees payable to TCS
by multiplying the number of Subscribers in excess of the Committed
Subscriber Level

	 

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 
	(as defined in Clause 7.5) by the Per Subscriber Charge (after deducting
any payments previously made in relation to those Subscribers).

Annual adjustment of the timing payments

	 	 	 
	7.6	 	
The parties have agreed that, until the Committed Subscriber Level has
been achieved, the following process shall be applied to adjust the timing
of the payments of the Committed Licence Revenue (“Tranche Timing of
Payment Adjustment Process”):-

	 	 	 
	7.6.1	 	
within 30 days of production of the Report, H3G will calculate whether
they have exceeded the Notional Committed Subscriber Number.
 
	7.6.2	 	
In the event that H3G have exceeded the Notional Committed Subscriber
Number, H3G agrees to pay TCS the difference between the payments they
would have otherwise have made if the Notional Per Subscriber Charges had
been applied for the relevant period and the amount of the Committed
Licence Revenue that has been paid to date. This one-off adjusted payment
shall be termed the (“One-off Adjusted Payment”).
 
	7.6.3	 	
As a result of the One-off Adjusted Payment, the amount of each
[*] Committed Licence Revenue Tranche for the following year shall
be reduced by a quarter of the One-off Payment so that the amount of the
Committed Licence Revenue in that year shall not be affected but that part
of the Committed Licence Revenue will be paid earlier. By way of example,
if the One-off Adjusted Payment is [*] each Committed Licence Revenue
Tranche for the year following the Report shall be reduced by [*]. The
intention of the Parties is that the overall quantum of the Fees
(including the Committed Licence Revenue) shall not be affected by the
Tranche Timing of Payment Adjustment Process.
 

	 	 	 
	8.	 	
Termination
 
	8.1	 	
Either Party may terminate this Licence Agreement with immediate effect
by giving notice in writing to the other Party if any one or more of the
following events happens:

	 	 	 
	(a)	 	
the other Party commits a material
breach of any of its obligations under this Licence
Agreement which is incapable of remedy; or
 
	(b)	 	
the other Party fails to remedy,
where capable of remedy, or persists in any material
breach of any of its obligations under this Licence
Agreement after having been required in writing in
either case to remedy or desist from such breach within
a period of 30 days

	 
	provided however that no right of TCS to terminate for non-payment of any
fees shall arise other than as provided in Clause 8.2.

	 	 	 

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	8.2	 	
For the purpose of Clause 8.1, TCS may terminate this Licence Agreement
for non-payment by H3G only by giving at least 60 days’ notice to H3G
where H3G has failed to pay an amount which is:

	 	 	 
	(a)	 	
Undisputed, due and payable;
 
	(b)	 	
in excess of [*];
 
	(c)	 	
overdue for a period of at least 30
days; and
 
	(d)	 	
one for which a demand has been
made by TCS in writing to H3G, provided that the demand
clearly states that the amount has been overdue for a
period of 30 days and states TCS’s intention to
terminate this Licence Agreement at the end of the 60
day period following service of the demand if the
demand is not met.

	 	 	 
	8.3	 	
H3G may terminate this Licence Agreement with immediate effect by giving
notice in writing to TCS if any one or more of the following events
happens:

	 	 	 
	(a)	 	
TCS proposes a voluntary
arrangement within the meaning of Section 1 or Section
253 of the Insolvency Act 1986 or an interim order is
made in relation to TCS under Section 252 of the
Insolvency Act 1986 or any other steps are taken or
negotiations commenced by TCS or any of its creditors
with a view to proposing any kind of composition,
compromise or arrangement involving the other party and
any of its creditors;
 
	(b)	 	
TCS is deemed to be unable to pay
its debts within the meaning of Section 123 of the
Insolvency Act 1986, or calls a meeting for the purpose
of passing a resolution to wind it up, or such a
resolution is passed, or a resolution is passed by the
directors of TCS to seek a winding up or administration
order, or TCS presents, or has presented in relation to
it, a petition for a winding up order or to appoint an
administrator, or has an administrator receiver, or
receiver appointed of all or any part of its business,
undertaking, property or assets;
 
	(c)	 	
a secured lender to TCS takes any
steps to obtain possession of the property on which it
has security or otherwise to enforce its security; or
 
	(d)	 	
TCS suffers or undergoes any
procedure analogous to any of those specified in
Clauses 8.3(a) to 8.3(c) inclusive above or any other
procedure available in the country in which TCS is
constituted, established or domiciled against or to an
insolvent debtor or available to the creditors of such
a debtor.

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	8.4	 	
H3G may, at any time following the payment of the Committed Licence
Revenue, terminate this Licence Agreement with no further payment due from
H3G by giving at least 30 days prior written notice to TCS.
 
	8.5	 	
The termination of this Licence Agreement shall be without prejudice to
the rights and remedies of either Party which may have accrued up to the
date of termination. In the event of termination for H3G’s breach, H3G
shall also have the right to continue to use the Supplied Software for a
period of [*] following termination of this License Agreement.
During this additional [*] period only, H3G shall, unless the
Committed Licence Revenue has been paid, continue to pay the Committed
Licence Revenue Tranches as they become due. In the event that H3G have
paid the Committed Licence Revenue, H3G shall continue to pay the Per
Subscriber Charge.
 
	8.6	 	
In the event that this Licence Agreement is terminated for TCS’ breach,
H3G’s rights to continue using the Supplied Software shall be unaffected.
 
	8.7	 	
In the event that an H3G Affiliate commits a material breach of this
Licence Agreement (the “Defaulting Affiliate”), TCS’s rights to terminate
this Licence Agreement pursuant to Clause 8.1 above will only extend to
the Defaulting Affiliate’s rights under this Licence Agreement and in all
other respects H3G’s (and other H3G Affiliates’) rights to continue using
the Supplied Software shall remain unaffected.
 
	9.	 	
Consequences of termination
 
	9.1	 	
On termination of this Licence Agreement TCS shall procure that all
documentation and other material including disks and tapes containing
Confidential Information of H3G or any H3G Affiliate shall be returned to
H3G or the relevant H3G Affiliate (as appropriate) forthwith.
 
	9.2	 	
Subject to Clause 8.5, the terms of Clauses 3, 5, 6, 7 and 10 shall
survive termination of this Agreement. Any other terms of this Agreement
which are either expressed so as to survive (or are capable of surviving)
termination of this Agreement or from their nature or context it is
contemplated that they are to survive termination shall remain in full
force and effect notwithstanding termination.
 
	10.	 	
Limitation of Liability
 
	10.1	 	
Nothing in this Licence Agreement shall exclude or limit either Party’s
liability for: (i) the tort of deceit; (ii) death or personal injury
caused by its negligence (as defined in section 1 of the Unfair Contract
Terms Act 1977); (iii) any breach of the obligations implied by section 12
of the Sale of Goods Act 1979 or section 2 of the Supply of Goods and
Services Act 1982; (iv) any liability which cannot be excluded by law; (v)
and, in the case of TCS, the indemnity set out in Clauses 4.1 to 4.5.
 
	10.2	 	
Subject to Clause 10.1 and to the extent that the law permits, each
Party’s maximum liability per event shall in no event exceed [*] of the
total of those sums which have been paid and those which are payable by
H3G and any and all H3G Affiliates under this Licence Agreement, the
Services Integration Agreement and the Maintenance and Support Services
Agreement (and all agreements ancillary to it), or [*] whichever is the
greater. For the purposes of calculating the total sums payable under the

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
Maintenance and Support Services Agreement and agreements ancillary to it
the minimum figure shall assume that maintenance and support is provided
for a period of 4 years. This calculation shall be in pounds sterling
and any conversion from any other currency shall be made using the London
spot closing mid-point rate for that currency against the pound sterling
which is shown in the edition of the Financial Times for the day on which
this calculation is made or, if no edition is published on that day, in
the edition last published before that day. The calculation shall be
made at the time on which the cause of action first accrues which would
otherwise result in liability greater than the aggregate liability cap
provided for by this Clause 10.2.
 
	10.3	 	
TCS agrees that any and all claims by TCS against H3G or the H3G
Affiliates will be brought by TCS solely against H3G subject always to the
limits on liability above and TCS will not bring any claims directly
against any H3G Affiliate other than to seek an injunction against the
relevant H3G Affiliate where this is permitted under the laws of the
relevant jurisdiction.
 
	11.	 	
Insurance
 
	11.1	 	
Without limiting its other obligation under the Licence Agreement or
otherwise at law TCS shall effect and maintain at its own expense the
following insurance policies (the “Insurance Policies”):

	 	 	 
	11.1.1	 	
Professional Indemnity Insurance in relation to any negligent act error
or omission or any breach of duty in the conduct and execution of
professional activities and duties undertaken by TCS or any person for
whom they are responsible pursuant to this Licence Agreement. This
insurance shall be effected in an amount of not less than [*] per each
occurrence for a period from the Commencement Date until 3 years after the
termination of this Licence Agreement. The excess shall not exceed [*]
in respect of any one occurrence or series of occurrences consequent upon
or attributable to one original cause. This insurance shall not contain a
retroactive date later than the date of the appointment of TCS or the date
upon which TCS commenced work whichever is the earlier; and
 
	11.1.2	 	
Third Party Insurance covering the legal liability of TCS and H3G and
H3G Affiliates for injury to persons or loss or damage to property arising
out of the execution of the works or the performance of the Licence
Agreement. The policy should contain a “Cross Liability Clause” extended
to cover unintentional breach or infringement or unauthorised use of
Intellectual Property Rights and the amount of such insurance shall not be
less than [*] in respect of any one occurrence.

	 	 	 
	11.2	 	
The terms and conditions of the Insurance Policies and the choice of
insurer shall be approved by H3G and such approval shall not be
unreasonably withheld. If TCS shall fail to effect and keep in force the
Insurance Policies or provide copies of the Insurance Policies or premium
receipts to H3G, then H3G may effect and keep in force any such insurance
and pay such premiums as may be necessary for that purpose and recover
from TCS whether by way of deduction or otherwise.

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	11.3	 	
If the limit of liability under any of the Insurance Policies is subject
to an annual aggregate, TCS undertakes to reinstate such limit of
liability immediately in the event that such limit is exhausted for any
reason.
 
	11.4	 	
H3G and the H3G Affiliates shall be named as an insured party under the
Insurance Policies and TCS shall procure that each insurer agrees to waive
any rights of subrogation against H3G and the H3G Affiliates.
 
	11.5	 	
TCS shall procure that the Insurance Policies contain a worldwide
jurisdiction clause.
 
	12.	 	
Dispute Resolution/Compliance
 
	12.1	 	
It is the intention of the parties to settle amicably all disagreements
and differences of opinion on matters of procedure and management arising
out of this Agreement by conference and negotiations, and that the
following procedure shall be followed prior to the serving of a claim form
(as stipulated in this Agreement) or in relation to any matter of dispute
between the parties concerning matters of procedure and management. In
the event that the parties are unable to resolve any disagreement or
difference of opinion arising out of this Agreement, the parties agree to
dispose of the matter thus:
 

	 	 	 
	12.1.1	 	
the Project Managers of both parties shall meet at H3G’s Designated
Premises to attempt resolution. Should they not meet and resolve the
matter within two (2) Business Days of the time at which either Party
convenes a meeting to resolve the matter, then
 
	12.1.2	 	
the matter shall be promptly referred to the Steering Committee to
attempt resolution. Should the Steering Committee not meet and resolve
the matter within two (2) Business Days of the referral under this Clause
12.1.2 , then
 
	12.1.3	 	
the matter promptly shall be referred to the Group IT Director of H3G
and the Chief Executive Officer of TCS for resolution. If the Group IT
Director of H3G and the Chief Executive Officer of TCS are not able to
resolve the matter within two (2) Business Days of the referral under this
Clause 12.1.3, then
 
	12.1.4	 	
the Parties shall consider then and on an ongoing basis whether or not
it would be suitable to refer the matter in dispute to an expert appointed
by the Parties or at any to enter into an alternative dispute resolution
procedure with the assistance of a mediator appointed by the Parties or,
in default of agreement, by the President for the time being of the
British Computer Society.

	 	 	 
	12.2	 	
If the parties have not resolved the dispute or referred the matter as
contemplated by Clause 12.1.4 within fifteen (15) Business Days of expiry
of the period set out in Clause 12.1.3, then (subject to the ongoing
obligation in Clause 12.1.4) the dispute resolution process shall be
deemed to have been exhausted in respect of the matter in dispute and such
dispute shall be referred to and finally resolved by arbitration under the
International Chamber of Commerce Rules, which Rules are hereby deemed to
be incorporated by reference into this Clause. The seat, or legal place,
of arbitration shall be London, England. The language to be used in the
arbitral proceedings shall

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
be English. The governing law of the contract shall be the substantive
law of England.
 
	12.3	 	
TCS shall perform its obligations under this Licence Agreement in a
manner which enables H3G and its Affiliates to comply at all times with
all applicable laws, regulations and rules applicable to its business.
 
	13.	 	
Notices and Address for service
 
	13.1	 	
Any notice, consent or the like to be given by either Party to the other
in connection with this Licence Agreement shall be in writing and sent by
special delivery (if to an address in the United Kingdom) or by air mail
(if to an address not in the United Kingdom) to the address of the
recipient set out below or to such other address as shall for the purpose
be notified in writing by the recipient or shall be delivered by hand or
by courier or sent by facsimile transmission to the number set out below.
Any change of address by any Party during the term of this Licence
Agreement shall be notified promptly to the other Party in writing by
special delivery or airmail.
 
	13.2	 	
The initial addresses and fax numbers for the Parties or their respective
agents for the purpose of service of proceedings in England and Wales and
for the purposes of Clause 13.1 are:

(a) TCS

	 	 	 
	Address:	 	
275 West Street, Annapolis, MD 21401
	
 

	Fax no:	 	
001-410-280-1048
	
 

	For the attention of:	 	
Legal Department
	
 

(b) H3G

	 	 	 
	Address:	 	
L-1728,
	 	 	
7, Rue du Marche aux Herbes,
	 	 	
Luxembourg
 
	With a copy to:	 	
c/o Hutchison Whampoa Limited
	 	 	
22nd Floor, Hutchison House
	 	 	
10 Harcourt Road
	 	 	
Central, HONG KONG
 
	For the attention of:	 	
Company Secretary
	Fax	 	
+852 2128 1778

	 	 	 
	13.3	 	
This Clause 13.3 shall apply in the absence of proof of earlier receipt.
A notice, demand or other communication served by special delivery shall
be deemed duly served on an addressee in the United Kingdom forty-eight
hours (disregarding days which are not Business Days) after posting. A
notice, demand or other communication served by air mail shall be deemed
duly served on an addressee in a country other than the United Kingdom
seven Business Days after posting. A notice,

Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	 	 	
demand or other communication sent by facsimile transmission shall be
deemed to have been served at the time of transmission (save that if the
transmission occurs after 6.00 p.m. on a Business Day or on a day other
than a Business Day the notice, demand or other communication shall be
deemed to have been served at 8.30 a.m. on the next Business Day
following transmission).
 
	13.4	 	
In proving service of the same it will be sufficient to prove, in the
case of a letter, that such letter was left at or delivered to the correct
address of the party to be served as provided in this Clause or, in the
case of special delivery or air mail, properly addressed to the address of
the Party to be served given in this Clause and placed in the post prepaid
and, in the case of the facsimile transmission, that such facsimile was
duly transmitted to the number of the Party to be served given in this
Clause and an electronic acknowledgment was received. For the purposes of
this Clause 13 alone “Business Day” shall mean any day (other than a
Saturday or Sunday) on which the banks are ordinarily open for business in
the City of London.
 
	13.5	 	
H3G irrevocably appoints Hutchison Whampoa Agents (UK) Limited of 9 Queen
Street, Mayfair, London, W1X 7PH as its agent to receive and acknowledge
on its behalf service of any writ, summons, order, judgment or other
notice of legal process in England. If for any reason the agent named
above (or its successor) no longer serves as agent of H3G or for this
purpose, H3G shall promptly appoint a successor agent and notify TCS
thereof.
 
	13.6	 	
TCS irrevocably appoints Salans Secretarial Services Limited as its
registered office from time to time (currently Clements House, 14-18
Gresham Street, London, EC2V 7NN) quoting reference to RLT/0201111.2 as
its agent to receive and acknowledge on its behalf service of any writ,
summons, order, judgment or other notice of legal process in England. If
for any reason the agent named above (or its successor) no longer serves
as agent of TCS for this purpose, TCS shall promptly appoint a successor
agent and notify H3G thereof. Until H3G receives such notification, it
shall be entitled to treat the agent named above (or its successor) as the
agent of the Guarantor for the purposes of this clause. TCS agrees that
any such legal process shall be sufficiently served on it if delivered to
such agent for service at its address for the time being in England
whether or not such agent gives notice thereof to TCS.
 
	14.	 	
Entire Agreement
 
	 	 	
This Licence Agreement together with the Schedules constitutes the entire
agreement between the Parties relating to the subject matter covered and
supersedes any previous agreements, arrangements, undertakings or
proposals, written or oral, between the Parties in relation to such
matters.
 
	15.	 	
Waiver
 
	15.1	 	
No variation or waiver of any of the terms hereof shall be valid unless
in writing signed by or on behalf of those Parties.

 
Note: Information in this document marked with a
“[*]” has been omitted and filed separately with the U.S. Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

	 	 	 
	15.2	 	
No relaxation, delay, forbearance or indulgence of either Party in
exercising or enforcing nor any failure by either Party to exercise or
enforce any rights conferred upon it by this Licence Agreement shall be
deemed a waiver of any such right or operate so as to bar the exercise or
enforcement thereof at any time or times thereafter.
	 
	16.	 	
Severability
	 
	 	 	
The invalidity or unenforceability of any provision (or part of a
provision) of this Licence Agreement shall not affect or prejudice the
validity or enforceability of the remainder of this Licence Agreement.
	 
	17.	 	
Assignment
	 
	 	 	
Neither Party shall assign, transfer or otherwise dispose of its rights
or obligations under this Licence Agreement without the prior written
consent of the other Party such consent not to be unreasonably withheld
or delayed (except, in the case of H3G, where such assignment, including
partial assignment, is to an H3G Affiliate or to a any other third party
(other than a TCS competitor set out in Schedule 17 to the Services
Integration Agreement) who has acquired the whole or a substantial part
of its assets in which case no such consent shall be required)
	 
	18.	 	
Governing law and jurisdiction
	 
	 	 	
The construction, validity and performance of this Licence Agreement
shall be governed by the laws of England and Wales.

In witness whereof the parties have executed this Licence Agreement on the date
stated above.

	 	 	 	 	 
	Signed by	 	 	
	)
	for and on behalf of	 	 	
	)
	HUTCHISON WHAMPOA 3G	 	 	
	) /s/
	IP S.A.R.L	 	 	
	)
	 
	Signed by	 	 	
	)
	for and on behalf of	 	 	
	)
	TELECOMMUNICATION SYSTEMS INC	 	 	
	) /s/

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE 1

SUPPLIED SOFTWARE

[*]

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

FEES SCHEDULE

Section 1 – Minimum Licence Fees

	 	 	 	 	 
	 	 	Date	 	Invoiced Payment
	 
	 	 	
Commencement Date
	 	[*]
	 	 	
Commercial Production
	 	[*]
	 	 	
One year after Commercial Production
	 	[*]
	 	 	
Two years after Commercial Production
	 	[*]

Section 2 – Subscriber-based Revenues

	 	 	 	 	 
	

	Subscriber Numbers	 	Payment Due
	
	 	
	From	 	To	 	 
	

	 	 	 	 	Minimum Licence Fees (as
	[*]	 	
[*]
	 	set out in Section 1 above)
	

	[*]	 	
[*]
	 	[*] per Subscriber
	

	[*]	 	
[*]
	 	[*] per Subscriber
	

	[*]	 	
[*]
	 	[*] per Subscriber
	

	[*]	 	
[*]
	 	[*] per Subscriber
	

Section 3 – Third Party Software Fees to be paid per Data Centre Installation

	 	 	 	 	 
	

	Subscriber Numbers	 	Fees Payable
	
	 	
	From	 	To	 	 
	

	[*]	 	
[*]
	 	[*]
	

	[*]	 	
[*]
	 	[*]
	

	[*]	 	
[*]
	 	[*]
	

	[*]	 	
[*]
	 	[*]
	

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

Section 4 – Third party Software Fees to be paid per Test Installation

	 	 	 
	

	Fees Payable per Test Installation	 	
[*]
	

Section 5 – Calculations to be used for adjustment of timing of payment of
Minimum Licence Fees

	 	 	 
	

	Time	 	Notional Committed Subscriber Number
	

	One year after the Commencement Date	 	
[*]
	

	One Year after Commercial Production	 	
[*]
	

	Two Years after Commercial Production	 	
[*]
	

	Three Years after Commercial Production	 	
[*]
	

NOTIONAL PER SUBSCRIBER CHARGES

	 	 	 	 	 
	

	Subscriber Members	 	Notional Price Per Subscriber
	
	 	
	From	 	To	 	 
	

	[*]	 	
[*]
	 	[*]
	

	[*]	 	
[*]
	 	[*]
	

	[*]	 	
[*]
	 	[*]
	

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

H3G AFFILIATES

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

Acceptance Testing Procedures

TCS shall develop an Acceptance Tests Plan which shall cover a comprehensive
set of tests for the purpose of ensuring that the Location Server System and
other Services conform to the Functional Specification and any service levels.
The Acceptance Tests Plan shall, as a minimum, include the following:-

	•	 	Details of the Acceptance Tests to be conducted by H3G;
	 
	•	 	Details of what is to be tested, the relevant criteria against which
the Supplied Software and all other Deliverables, including the
Location Server System, will be tested and a detailed timetable for
the performance of such Acceptance Tests;
	 
	•	 	Acceptance Criteria which, as a minimum, ensure the following:-

	 	•	 	The Supplied Software and the other Deliverables, including the
Location Server System, deliver the agreed functionality;
	 
	 	•	 	Existing functionality is not affected by the new service;
	 
	 	•	 	The Supplied Software and the other Deliverables, including the
Location Server System, work in H3G’s Environment as required under
this Agreement and any Work Package;
	 
	 	•	 	The components of the Location Server System and the other
Deliverables integrate/interface with each other and
integrate/interface with and will have no adverse effect on other
systems installed in or services interfacing with H3G’s Environment
including, without limitation, any systems or services provided by
other H3G Service Providers;
	 
	 	•	 	The Supplied Software and the other Deliverables, including the
Location Server System, perform within prescribed tolerances;
	 
	 	•	 	Any installation/required operating instructions are complete,
accurate and usable;
	 
	 	•	 	Unless otherwise agreed in writing by the H3G Project Manager, the
Supplied Software and other Deliverables can be managed and supported
by existing service management tools and systems.

The Acceptance Tests Plan shall require the agreement of H3G before being
finalised for these purposes.

	•	 	Testing shall, unless otherwise agreed in writing by the H3G Project
Manager, comprise the following:-

	 	•	 	Unit testing
	 
	 	•	 	Functional testing
	 
	 	•	 	Integration/Interface testing
	 
	 	•	 	Security testing
	 
	 	•	 	Performance testing
	 
	 	•	 	Volume/Stress testing
	 
	 	•	 	Reliability, recovery and contingency testing

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

Charges Schedule

Section 1 – Services Integration Agreement

	 	 	 	 	 
	

	Data Centre Installation	 	Test Installation	 	Pre-Production Installation
	Fixed Fee (£)	 	Fixed Fee (£)	 	Fixed Fee (£)
	

	[*]	 	
[*]
	 	[*]
	

NETWORK CHANGE FEE

	1.	 	Change of Core Network
            
 [*] (one-off fee)

TRAINING FEES

	 	 	 
	

	Type of Training	 	Fees Payable
	

	1. Initial Training Services (Deployment into a Data Centre)	 	
[*] per Class
	

	2. Customised Training Services	 	
[*] per Class
	

AGREED RATE  – LOCAL WORK PACKAGES

	1.	 	[*] per day

Section 2 – Licence Agreement

MINIMUM LICENCE FEES

	 	 	 
	

	Date	 	Total Payment
	

	1. Commencement Date	 	
[*]
	

	2. Commercial Production until one year after Commercial
Production	 	
[*]
	

	3. One year after Commercial Production until two years
after Commercial Production	 	
[*]
	

	4. Two years after Commercial Production until three years
after Commercial Production	 	
[*]
	

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SUBSCRIBER BASED REVENUES

	 	 	 	 	 
	

	Subscriber Numbers	 	Payment Due
	
	 	
	From	 	To	 	 
	

	[*]	 	
[*]
	 	Minimum Licence Fees (as set out in table above)
	

	[*]	 	
[*]
	 	[*] per Subscriber
	

	[*]	 	
[*]
	 	[*] per Subscriber
	

	[*]	 	
[*]
	 	[*] per Subscriber
	

	[*]	 	
[*]
	 	[*] per Subscriber
	

THIRD PARTY SOFTWARE FEES

	1.	 	Per Data Centre Installation (or Pre-Production Installation)

	 	 	 	 	 	 	 
	

	Subscriber Numbers (per Data Centre or Pre-Production	 	Maximum Fees Payable
		 	 
	 	 	Installation)	 	 	 	
	
	 	 
	From	 	 	 	To	 	 
	

	[*]	 	 	 	[*]
	 	[*]
	

	[*]	 	 	 	[*]
	 	[*]
	

	[*]	 	 	 	[*]
	 	[*]
	

	[*]	 	 	 	[*]
	 	[*]
	

 

H3G Affiliates may elect for a Pre-Production Installation followed by a Data
Centre Installation, but will only pay once for the relevant Third Party
Software

NB: The maximum fees payable above relate to TCS’ commitment to H3G as set out
in Clause 4.2 that H3G will, provided the Subscribers per Data Centre
Installation (or Pre-Production Installation) do not exceed the figures in the
table above, not need to purchase any additional Third Party Software.

The Third Party Software is not licensed on a [*] basis (although payment is
calculated on this basis).

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

2.     Per Test Installation

	 	 	 
	

	Fees Payable	 	
[*]
	

Section 3 – Maintenance and Support Services Agreement

ANNUAL SUPPORT FEES

	1.	 	[*] per cent of Fees (as defined in the Licence Agreement).

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

SCHEDULE

Maintenance And Support Services Agreement

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

DATED as of 31st January 2002

(1) HUTCHISON WHAMPOA 3G IP SARL

AND

(2) TELECOMMUNICATION SYSTEMS INC.

MAINTENANCE AND SUPPORT SERVICES AGREEMENT

Baker & McKenzie

100 New Bridge Street

London EC4V 6JA

Tel: 0207 919 1000

Fax: 0207 919 1999

Ref: HRS/PLG

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

THIS AGREEMENT is made the                      day of                      January 2002

BETWEEN:

	 	 	 
	(1)	 	
HUTCHISON WHAMPOA 3G IP S.A.R.L. a company incorporated under Luxembourg
law whose registered office is at L-1728 Luxembourg,7, rue du Marche aux
Herbes , Luxembourg (“H3G”); and
	 
	(2)	 	
TELECOMMUNICATION SYSTEMS INC a Maryland corporation having its principal
place of business at 275 West Street, Annapolis, Maryland, 21401 (“TCS”);
each a “Party”, together referred to as the “Parties”

WHEREAS:

	 	 	 
	(A)	 	
Hutchison 3G UK Limited issued a Request for Quotation (“Initial RFQ”)
entitled “Request for Quotation for Location Services (LCS) System” dated
17 August 2001 and a further Request for Quotation entitled “H3G Technical
and Functional Requirements for the Location Server XLP” and dated October
18, 2001 (“Second RFQ”) for the design, development, integration,
implementation and support for the Location Server System (as such term is
defined in Clause 1.1 of the Services Integration Agreement) (the Initial
RFQ and the Second RFQ being together the “RFQ” and is set out in Schedule
6 to the Services Integration Agreement)
	 
	(B)	 	
In response to the RFQ, TCS issued a Response to RFQ dated 25th October
2001 (“Response") which is attached to the Services Integration Agreement
as Schedule 7.
	 
	(C)	 	
H3G and TCS have produced statements of the required functionality for
the Supplied Software, which is set out in Schedule 15 to the Services
Integration Agreement (“Functional Specification”)
	 
	(D)	 	
H3G and TCS have entered into a Licence Agreement whereby TCS has agreed
to licence the Supplied Software to H3G and H3G Affiliates.
	 
	(E)	 	
In reliance on the statements made by TCS in the Response and in reliance
on TCS’s skill, knowledge and experience, including but not limited to the
experience and track record of TCS in the IT, computing and software
industries H3G has decided to request TCS to provide maintenance and
support services in relation to the Supplied Software, following
implementation, on the terms and conditions contained in this Agreement.

IT IS AGREED AS FOLLOWS:-

	 	 	 
	1.	 	
Interpretation
	 
	1.1	 	
In this Agreement the following words and expression shall have the
following meanings except where the context otherwise requires:-

	 	 	 
	 	“Availability”	
means the availability of the Supplied Software for the
Service Period calculated by using the following

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 
	formula:-

	 
	(Total Service Hours – Supplied Software Unavailability) x 100
	

	Total Service Hours

	 	 	 
	“Business Day”	 	
means any day (other than a Saturday or Sunday) on which the
banks are ordinarily open for business in the City of London;
	 
	“Charges”	 	
means the fees payable for the Support Services as set out in
Schedule 3;
	 
	“Committed Licence
Revenue”	 	
has the meaning gives to it in the Licence Agreement;
	 
	“H3G Central Maintenance
Team”	 	
means the team of H3G staff whose purpose is to provide a
central point within H3G for the monitoring and maintaining
of the Supplied Software including, without limitation, the
testing of Modifications prior to submission to the H3G
Affiliates;
	 
	“H3G Licensed Affiliate”	 	
means the Initial H3G Affiliates and any H3G Affiliates who
have formally opted to implement the Supplied Software
pursuant to the procedure set out in Clause 2 to the Services
Integration Agreement;
	 
	“H3G Premises”	 	
means any premises owned or leased by H3G on or to which TCS
are providing Support Services;
	 
	“Help Desk”	 	
means the help desk facility provided by TCS for use by H3G
as set out in Schedule 2;
	 
	“Incident”	 	
means a fault in the Supplied Software;
	 
	“Individual Instance”	 	
means, in relation to a Critical Software Fault, any
individual occurrence of such Critical Software Fault such
that a recurrence of the same Critical Software Fault within
a twenty-four hour period shall only constitute one
Individual Instance;
	 
	“Initial H3G Affiliates”	 	
has the meaning given to it in the Licence Agreement;
	 
	“Licence Agreement”	 	
means the agreement of the same name executed by the parties
on the date hereof;
	 
	“Licence Fees”	 	
means the fees payable in respect of the Supplied Software as
set out in Schedule 2 to the Licence Agreement;

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	“Maintenance Release”	 	
means any Modification to the Supplied Software that is not a
New Version that may be either necessary or mandatory for
maintenance purposes including, without limitation, a
documented patch, “work-around” or other temporary fix;
	 
	“Maintenance Services”	 	
means the provision of Maintenance Releases and New Versions
to the Supplied Software;
	 
	“Modification”	 	
means any change or amendment to the Supplied Software
including, without limitation, any Maintenance Release or New
Version together with any accompanying documentation;
	 
	“New Version”	 	
means the updating of the licensed Supplied Software with
versions that contain Software Fault fixes and/or functional
changes;
	 
	“Repetitive Critical
Software Fault”	 	
means a Critical Software Fault that occurs on four
Individual Instances in a rolling three-month period on the
H3G network in a particular Territory;
	 
	“Scheduled Downtime”	 	
means any period during which the Supplied Software will be
Unavailable due to scheduled maintenance work that is agreed
by the Parties at least 14 calendar days in advance;
	 
	“Service Hours”	 	
means twenty-four hours per day, seven days a week;
	 
	“Service Period”	 	
Means three calendar months;
	 
	“Services Integration
Agreement”	 	
means the agreement of the same name executed by the parties
on the date hereof;
	 
	“Services Manager”	 	
means the relevant persons (or their successors) set out in
Schedule 1;
	 
	“Severity Classification”	 	
means the classification of Software Faults in accordance
with Schedule 2;
	 
	“Signature Date”	 	
means the date this Agreement has been signed by both parties;
	 
	“Single Site Redundancy
Issue”	 	
means a problem or issue that is not due to the Location
Server System but which causes the Supplied Software to
become Unavailable in a Territory due to the lack of
redundancy in that Territory (including loss of power, loss
of connectivity to third-party systems (excluding the
Recommended Platform));

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	“Software Fault”	 	
means any incorrect functioning of the Supplied Software
which results in the failure of the Supplied Software to
operate substantially in accordance with the standards set
out in the Functional Specification or any applicable
specification agreed between the parties;
	 
	“Software Fault Services”	 	
Means the provision of remedies and workarounds for
(including fixes and patches for) Software Faults in relation
to the Supplied Software together with the provision of the
Helpdesk;
	 
	“Supplied Software
Unavailability”	 	
Means the period of time in the Service Period during which
the Supplied Software was Unavailable;
	 
	“Support Services”	 	
means the Maintenance Services and Software Fault Services to
be carried out by TCS as set out in Clause 3 and Schedule 2
of this Agreement;
	 
	“Support Service
Standards”	 	
means those standards of performance to be achieved by TCS in
performing the Support Services as set out in Schedule 2;
	 
	“TCS Service Centre”	 	
means any of those locations listed in Schedule 4 of this
Agreement;
	 
	“TCS Supported Platform”	 	
means the platforms on which the Supplied Software is
supported by TCS (whether at present or in the future)
including, without limit, the platforms (and any successor
versions thereof) listed in Schedule 5;
	 
	“Technical Contact”	 	
Means, in the case of TCS, a contact who will be responsible
for the supervision of technical engineers within the
relevant Territory;
	 
	“Territory”	 	
has the meaning given to it in the Licence Agreement;

	 
	“Top-up Local Support
Agreement”	 	
means an agreement between an H3G Affiliate and TCS for the
provision of support and maintenance services not included
within the scope of the Support Services or where the H3G Affiliate requires service levels in excess of the Support
Service Standards;
	 
	“Total Hours”	 	
means the number of hours in each Service Period, totalled
over the Service Period less any planned downtime;

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	“Unavailable”	 	
means that the Supplied Software (or any part thereof) is not
available to be used in the relevant Territory in the manner
in which such Supplied Software was designed and intended to
be used as set out in the RFQ and the Functional
Specification.

	 	 	 
	1.2	 	
Words importing the singular shall include the plural and vice versa;
words denoting persons shall include bodies corporate and unincorporated
association of persons and vice versa.
	 
	1.3	 	
References to Clauses and Schedules are, unless otherwise stated,
references to the clause of and schedules to this Agreement.
	 
	1.4	 	
Reference to any statute or statutory provision is, except where stated
otherwise, to a United Kingdom statute or statutory provision. Such
reference includes any consolidation or re-enactment, modification or
replacement of the same, any statute or statutory provision of which it is
a consolidation, re-enactment, modification or replacement and any
subordinate legislation in force under any of the same from time to time.
	 
	1.5	 	
Except where otherwise stated, capitalised terms have the meaning
ascribed to them in the Services Integration Agreement.
	 
	1.6	 	
Clauses 1.1 to 1.5 apply unless the contrary intention appears.
	 
	1.7	 	
The headings in this Agreement do not affect its interpretation.
	 
	1.8	 	
The Schedules to this Agreement form part of it.
	 
	1.9	 	
In the event of any conflict or ambiguity, the order of precedence for
this Agreement and the documents attached to or referred to shall be, in
descending order, as follows:

	 	 	 
	(i)	 	
the Services Integration Agreement;
	(ii)	 	
the Licence Agreement;
	(iii)	 	
this Agreement;
	(iv)	 	
the Schedules to this Agreement;

	 	 	 
	2	 	
Beneficiaries of the Agreement/Scope
	 
	2.1	 	
H3G Affiliates are intended beneficiaries of this Agreement and may
enforce the terms of this Agreement under the terms of the Contracts
(Rights of Third Parties) Act 1999. However the parties to this Agreement
may rescind, vary, amend or terminate this Agreement without the consent
of any H3G Affiliate, notwithstanding that an H3G Affiliate has relied on,
or indicated assent to, any term of this Agreement.

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	2.2	 	
TCS acknowledges that it shall be liable for not just the losses, damages
and expenses (arising in contract, tort or otherwise) suffered or incurred
by H3G but also for any such losses, damages and expenses suffered or
incurred by any H3G Affiliate;
	 
	2.3	 	
Except as provided in Clauses 2.1 and 2.2, a person who is not a party to
this Agreement has no right under the Contracts (Rights of Third Parties)
Act 1999 to enforce any term of this Agreement but this does not affect
any right or remedy which exists or is available apart from that Act.
	 
	2.4	 	
If, notwithstanding the provisions of Clauses 2.1 and 2.2, any H3G
Affiliate cannot for any reason recover its losses against TCS or finds
itself in a less advantageous position under the Contracts (Rights of
Third Parties) Act 1999 than it would have been had it been a party to the
Agreement, then the provisions of Clause 2.1 (to the extent that they
refer to the relevant Affiliate) shall be varied so as to read:
	 
	 	 	
“H3G declares itself trustee of the obligations, covenants and
indemnities given in this Agreement by TCS insofar as they are expressed
to be for the benefit of the H3G Affiliates and holds the said
obligations, covenants and indemnities upon trust for the absolute
benefit of the H3G Affiliates and TCS hereby covenants with H3G to
perform each of the said obligations, covenants and indemnities.”
	 
	2.5	 	
TCS acknowledges that any obligation of H3G may be validly discharged by
any H3G Affiliate and any rights of H3G may be exercised by any H3G
Affiliate (irrespective of the fact that the relevant term only refers to
the parties or the contracting entities).
	 
	2.6	 	
In the event of divestment or partial divestment of a Divested Business
Unit, if H3G so requests the parties hereby undertake to enter into a
novation agreement with the Divested Business Unit in the form agreed in
Schedule 5 of the Licence Agreement.
	 
	3	 	
Supply of Support Services
	 
	3.1	 	
In consideration of H3G paying to TCS the Charges in accordance with
Clause 8 and as specified in Schedule 3 of this Agreement, TCS shall, in
relation to the version (or versions) of the Supplied Software that H3G
are operating, provide the Support Services during the Service Hours to
H3G from the Start Date in accordance with the terms of this Agreement.
	 
	3.2	 	
TCS shall perform the Support Services in accordance with the Service
Levels set out in Schedule 2.
	 
	3.3	 	
The Parties’ Services Managers shall meet within a reasonable time of
either party’s Services Manager requesting a meeting but, unless both
parties consent, not more than once in every Service Period to discuss
TCS’ performance against the Service Levels, TCS’ road-map for improving
the Supplied Software (including technology refresh plans) and to solicit
H3G’s views on these matters.
	 
	3.4	 	
In the event that an H3G Affiliate wishes to obtain service levels that
exceed the Support Service Standards or receive services not currently
included in the provision of Support Services, then TCS and the relevant
H3G Affiliate shall negotiate in good faith to agree a Top-up Local
Support Agreement.

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	3.5	 	
TCS shall, at H3G’s request, demonstrate to H3G that it is able to
provide remote and on-site Support Services in a country for which an
Initial H3G Affiliate (included within the list of Initial H3G Affiliates
in Schedule 4 of the Licence Agreement) is established and, in the event
that further H3G Affiliates wish to enjoy the benefit of the Licence
Agreement (and this Agreement), in the countries in which such further H3G
Affiliate(s) is established.
	 
	3.6	 	
For the purposes of Clause 3.3, TCS may demonstrate its ability to supply
on-site Support Services in a country by using either its own personnel or
personnel of a third party where contractual arrangements have been made
with a third party service provider provided that TCS shall remain at all
times directly responsible to H3G for the performance of such third party
service provider’s duties under this Agreement. TCS hereby acknowledges
that TCS shall be entirely responsible for the performance, acts and
omissions of any TCS sub-contractor in relation to the supply of Support
Services and that H3G shall be entitled to treat such sub-contractors as
being TCS’s staff in every respect.
	 
	3.7	 	
To the extent required to resolve a Critical or Major Software Fault, TCS
shall provide on-site Support Services forthwith on request by H3G to
resolve a Software Fault including, without limitation, any Critical or
Major Software Fault which remains outstanding after the time set out in
Schedule 2 for service restoration.
	 
	3.8	 	
TCS shall ensure that its employees, agents and sub-contractors shall,
when working on H3G’s Premises, conform to H3G’s published working terms
and conditions and comply with H3G’s published regulations and codes of
conduct (as the same may change from time to time) including, without
limitation, H3G’s regulations as to health and safety and physical and
logical security. Any such changes shall be provided to TCS prior to
becoming effective. Any access by either party, their employees, auditors
and agents to any premises, equipment or data owned or leased or licensed
to the other shall be subject to the other’s published security and safety
regulations.
	 
	3.9	 	
If H3G reasonably believes that any employee, agent or sub-contractor of
TCS or any employee of any agent or sub-contractor of TCS, should be
removed either from any further provision of the Support Services or from
the H3G Premises on which he is located, it may give prior notice to TCS
accordingly. The parties shall attempt to negotiate a solution to the
problem but in default of agreement to the contrary within two (2)
Business Days of H3G’s first raising the matter, the employee, agent or
sub-contractor shall be removed from the Support Services or H3G Premises
(as the case may be).
	 
	3.10	 	
TCS shall provide quarterly reports broken down by Territory on Software
Fault logs, in order to advise H3G of the resolution times achieved in
relation to the Supplied Software status as set out in the reporting
obligations in Schedule 2. H3G will also measure the resolution times
achieved in relation to the Supplied Software and any differences between
the results measured by H3G and those reported by TCS shall be resolved in
accordance with the dispute resolution procedure set out in Clause 18 of
the Services Integration Agreement.

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	3.11	 	
TCS shall, for the duration of this Agreement, when such information is
available for public announcement, inform H3G of any completed New
Releases, any New Versions or any law or regulation proposed or in force
that requires an update to the Supplied Software.
	 
	3.12	 	
Modifications of the Supplied Software shall be provided as part of the
Charges of TCS to H3G from time to time during the currency of this
Agreement.
	 
	3.13	 	
TCS shall deliver Modifications of the Supplied Software for the
correction of known Software Faults to the H3G Central Maintenance Team or
a H3G Affiliate as set out in Schedule 2, and shall include New Versions
and Maintenance Releases to the Supplied Software which are not licensed
separately by TCS.
	 
	3.14	 	
TCS shall provide H3G with a UK free phone number for the purpose of
making support calls under this Agreement. The costs of establishing and
maintaining such UK free phone number shall be for TCS’ account.
	 
	3.15	 	
TCS shall, prior to the date of Commercial Production, appoint a
Technical Contact located within mainland Europe and shall ensure that
such Technical Contact together with the requisite support staff (wherever
located) are able to support the Location Server System for H3G’s
Affiliates established within Europe. TCS shall inform H3G which person
will constitute the TCS Service Manager in each territory in which an H3G
Affiliate is established.
	 
	3.16	 	
Modifications once incorporated into the Supplied Software shall be
deemed to be a part thereof.
	 
	3.17	 	
For each country in which Support Services are supplied, TCS shall
designate a Services Manager who will have the primary responsibility for
interfacing with H3G and also for keeping TCS’s organization and personnel
informed about decisions regarding the Support Services. For the
avoidance of doubt, the foregoing does not require TCS to locate a Service
Manager in each Territory.
	 
	3.18	 	
TCS shall have no obligation to support problems caused by the negligent
use of the Supplied Software by H3G or an H3G Affiliate or for any element
of the Supplied Software that is not installed on an TCS Supported
Platform.
	 
	3.19	 	
Notwithstanding H3G’s rights to terminate this Agreement for convenience
pursuant to Clause 10.1, the Charges for the Support Services shall remain
constant for the period of three years from the Commencement Date.
	 
	3.20	 	
TCS will supply English-language versions of the relevant Documentation,
and the parties agree that all communications relating to the Support
Services shall be conducted in English
	 
	4	 	
Warranties and Indemnities
	 
	4.1	 	
TCS warrants that in providing the Support Services:

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	4.1.1	 	
Its has the right to enter into this Agreement and to grant H3G and the
H3G Affiliates the licence to use the Modifications under the terms of the
Licence Agreement;
	 
	4.1.2	 	
the Modifications will, on their supply to H3G, be Date Compliant;
	 
	4.1.3	 	
the Modifications will, on their supply to H3G, be Euro Compliant;
	 
	4.1.4	 	
the Modifications will, on their supply to H3G, not contain any Viruses;
	 
	4.1.5	 	
The media on which the Modifications will be provided free from defects
in workmanship and materials during normal use; and
	 
	4.1.6	 	
the Documentation will describe in detail and in a completely
self-contained manner how H3G may access and use the Documentation such
that correctly trained any reader of the Documentation can access, use and
maintain all of the functionality of the Modifications without the need
for further instruction.
	 
	4.2	 	
If H3G or a H3G Affiliate notifies TCS in writing of an error in the
Supplied Software or of any degradation in the performance of any Supplied
Software, TCS warrants that it shall, at its expense, use its reasonable
efforts to correct the error in accordance with the time-scales set out in
Schedule 2 or, if it is unable to do so, replace the defective Supplied
Software (without prejudice to the other rights and remedies of H3G or the
H3G Affiliate).
	 
	4.3	 	
TCS hereby represents and warrants to H3G that:
	 
	4.3.1	 	
the Supplied Software shall continue to function in accordance with the
standards set out in the Documentation or any applicable standards agreed
by the parties in writing;
	 
	4.3.2	 	
any personnel engaged or employed by TCS in the provision of the Support
Services shall be appropriately qualified for such work and prior to
commencing such work on the Support Service shall have been trained by TCS
specifically for work on the Supplied Software at no charge to H3G; and
	 
	4.3.3	 	
at the date of this Agreement TCS has obtained and will maintain for the
duration of this Agreement all permissions, consents and licences
necessary to perform the Support Services.
	 
	4.4	 	
TCS warrants that, in performing its obligations under the terms of this
Agreement, it shall:
	 
	4.4.1	 	
use all reasonable skill and care;
	 
	4.4.2	 	
ensure that any TCS personnel engaged in the supply of the Support
Services devotes enough time, attention, skill and ability to the
provision of the Support Services for TCS to meet the service levels in
Schedule 2.

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	5	 	
Compliance

Each party shall comply with all applicable laws, regulations and rules
relevant to its performance of this Agreement.

	 	 	 
	6	 	
H3G’s Responsibilities
	 
	6.1	 	
H3G shall cooperate with TCS and assist TCS to provide the Support
Services in the following ways:
	 
	6.1.1	 	
H3G shall provide adequately trained personnel to work with TCS who have
access to the appropriate TCS technical documentation and have access to
and are able to operate the Supplied Software.
	 
	6.1.2	 	
At the time of any call reporting an Incident that is likely to require
access to the Supplied Software, H3G shall provide a secure access link
(in accordance with Schedule 2) to the system for TCS use. The link must
allow the transfer of data between the supporting machine and supported
machine and the exporting of such protocols as are necessary for TCS to
run screens from TCS’s system to the subject system and vice versa.
Security arrangements (in order to give TCS access to the system being
serviced) must be mutually agreed to before becoming effective.
	 
	6.1.3	 	
At the time of any call reporting an Incident, H3G will provide all
reasonably requested information (including, by way of example, system log
files, configuration files etc) and, to the extent it is practical to do
so, a reproducible instance of the Incident.
	 
	6.1.4	 	
For each country in which Support Services are supplied, H3G shall
designate a project manager who will have the primary responsibility for
interfacing with TCS and also for keeping H3G’s organization and personnel
informed about decisions regarding the Support Services. For the
avoidance of doubt, the foregoing does not require H3G to maintain an
employee in such country.
	 
	6.1.5	 	
Provide TCS with written notice of any changes made to the individual
components of, or the configuration environment of the Location Server
System.
	 
	6.1.6	 	
Prior to reporting any Software Fault, undertake preliminary
trouble-shooting to ascertain with reasonable certainty that the Software
Fault relates to the Supplied Software.
	 
	7	 	
Rights in Support Services Materials
	 
	7.1	 	
Title to, ownership of and all Intellectual Property Rights in ideas,
concepts, know-how or techniques, software and documentation developed or
utilised by TCS in providing the Support Services to H3G shall be and
remain with [*] unless otherwise agreed between TCS and H3G in writing.

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	8	 	
Payment
	 
	8.1	 	
Subject to Clause 8.2, H3G shall pay TCS the Charges in accordance with
Schedule 3.
	 
	8.2	 	
All amounts payable under this Agreement shall be exclusive of value
added taxes which (if any) shall be paid by the paying party at the rate
and in the manner for the time being prescribed by law.
	 
	8.3	 	
Subject to Clause 8.4, if TCS spends more than 10 man days investigating
non-TCS Faults (as defined below) in any Service Period, TCS reserves the
right to charge H3G at the Agreed Rate for the time and materials costs of
investigating and fixing Software Faults which are entirely unconnected
with the Supplied Software or the Location Server System (“Non-TCS
Faults”).
	 
	8.4	 	
TCS will provide H3G with prior written notice of its intention to invoke
the right to charge sums additional to the Charges for investigating and
fixing Non-TCS Faults. TCS will provide time sheets and, where relevant,
receipts for all such charges.
	 
	8.5	 	
TCS reserves the right to charge interest on overdue payments at the sum
of [*] from the
date payment was due until payment is made unless H3G notifies TCS in
advance that any portion of the invoice is disputed.
	 
	8.6	 	
TCS shall, where applicable, render VAT (or other similar tax) invoices
in accordance with the specific terms of the relevant Work Package (or
invoices compliant with applicable legislation from time to time) in
respect of the Charges together with all necessary substantiating
documents required by H3G. Invoices shall be sent to H3G in accordance
with the requirements set out in Clause 23 of the Services Integration
Agreement. In the absence of such invoices and documentation the Charges
shall be inclusive of VAT and all other similar taxes. If withholding
taxes are payable, H3G shall, provided that TCS are able to reclaim such
withholding tax, withhold such sums from payments due to TCS and pay such
amounts to the relevant authorities in accordance with the applicable
laws, and shall provide to TCS any and all withholding tax certificates
which H3G receives. In the event that TCS are not able to reclaim such
withholding tax, H3G shall pay to TCS such increased sum as is required to
ensure that TCS receives the same gross payment it would have received had
such withholding taxes not been payable.
	 
	9	 	
Term
	 
	 	 	
Subject to Clause 10, this Agreement shall be for an initial period of
one (1) year from the date hereof and shall continue thereafter to be
renewed on an annual basis until terminated by H3G giving TCS ninety (90)
days’ written notice of H3G’s wish to terminate.
	 
	10	 	
Termination
	 
	10.1	 	
H3G’s right to terminate this Agreement on notice.

Note: Information in this document marked with a “[*]” has been omitted and filed separately with the U.S.
Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

 

	 	 	 
	10.1.1	 	
H3G may terminate this Agreement at will by serving not less than ninety
(90) days’ prior written notice on TCS, such notice not to expire prior to
twelve months after the Commencement Date.
	 
	10.1.2	 	
If H3G serves notice terminating this Agreement at will pursuant to
Clause 10.1.1 then H3G and, where relevant, each H3G Affiliate shall be
deemed simultaneously to have served notice terminating each Top-up Local
Support Agreement to which it is a party at the time specified in H3G’s
notice.
	 
	10.1.3	 	
Termination at will of this Agreement will not affect the continuation
of any provision (including, without limitation, any service transfer or
exit management provision) that is intended to, or capable of surviving
termination.

	 	 	 
	10.1.4	 	
H3G may terminate this Agreement forthwith without the need to pay any
Charges other than those already due in the event that the Licence
Agreement is terminated.

	 	 	 
	10.2	 	
H3G Affiliates’ right to terminate Top-up Local Support Agreements on
notice.
	 
	10.2.1	 	
Notwithstanding any provision to the contrary of any Top-up Local
Support Agreement or any other document (other than this Agreement) which
forms part of a Top-up Local Support Agreement, an H3G Affiliate that has
entered into a Top-up Local Support Agreement shall be entitled to
terminate any such Top-up Local Support Agreement by the giving of not
less than twenty-one (21) days’ written notice to TCS to expire at any
time upon which the H3G Affiliate will pay TCS for the services rendered
by TCS up to the date of termination of the respective Top-up Local
Support Agreement. If an H3G Affiliate terminates any Top-up Local
Support Agreement by such notice as aforesaid then, the H3G Affiliate
shall have no further liability to TCS after the date of termination of
the respective Top-up Local Support Agreement.
	 
	10.3	 	
Termination of this Agreement for cause by either party.
	 
	10.3.1	 	
Notwithstanding any provision to the contrary in any Local Support
Agreement, each party shall, subject to Clause 10.3.2, have the right,
without prejudice to its other rights or remedies, to terminate this
Agreement immediately by written notice if the other party:

	 	 	 
	(a)	 	
is in material or persistent breach of any of its obligations
under this Agreement and either that breach is incapable of remedy
or the other party shall have failed to remedy that breach within
thirty (30) days after receiving written notice requiring it to
remedy that breach; or
	 
	(b)	 	
is unable to pay its debts (within the meaning of Section 123
of the Insolvency Act 1986 or become insolvent or an order made or a
resolution passed for the liquidation, administration, winding-up or
dissolution of the other party (otherwise than for the purposes of a
solvent amalgamation or reconstruction) or an administrative or
other receiver, manager, trustee, liquidator, administrator or
similar officer should be appointed over all or any substantial part
of the assets of the other party or any other steps are taken or

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

	 	 	 
	 	 	
negotiations commenced by the other party or any of its creditors
with a view to proposing any kind of composition, compromise or
arrangement involving the other party and any of its creditors or
anything analogous to the foregoing shall occur in any applicable
jurisdiction.
	 
	10.3.2	 	
For the purposes of Clause 10.3.1, but without limitation, TCS shall be
deemed to be in material breach of this Agreement, and such breach to be
incapable of remedy in the event that, solely due to a Software Fault:

	 	 	 
	(a)	 	
the Availability of the Supplied Software within
Territories utilising multi-site systems is measured as being [*]

	 
	(b)	 	
the Availability of the Supplied Software within
the Territories utilising single-rite systems is measured as
being [*]

	 	 	 
	10.3.3 	 	
Termination of this Agreement will:

	 	 	 
	 	(a)	
not affect the continuation of any
provision (including, without limitation, any service
transfer or exit management provision) which is
intended to, or capable of, surviving termination or
the rights accrued to date under this Agreement; and
	 
	 	(b)	
be without prejudice to the right
of any H3G Affiliate to seek to enter into a separate
agreement with the TCS for the provision of support and
maintenance services.

	 	 	 
	10.4	 	
H3G’s right to terminate this Agreement on change of control
	 

	 	 	 
	10.4.1	 	
H3G shall have the right, without prejudice to its other rights or
remedies, to terminate this Agreement immediately by written notice to
TCS, if TCS undergoes a change of control and this does not result in
control passing to an Affiliate of TCS. For the purposes of this Clause,
"control” has the meaning given to it in Section 574(2) of the Capital
Allowances Act 2001.
	 

	 	 	 
	10.5	 	
If H3G or an Affiliate of H3G commits a material breach of this Agreement
or a Top-up Local Support Agreement (the “Defaulting Affiliate”), TCS’s
rights to terminate this Agreement or the Top-up Local Support Agreement
(as relevant) will only extend to the Defaulting Affiliate and that in all
other respects H3G’s rights shall be unaffected.
	 
	11.	 	
Assignment

	 	 	 
	11.1	 	
H3G shall have the right to assign the benefit of this Agreement.

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

	 	 	 
	11.2	 	
Except as set out in Clause 11.1 or as otherwise agreed by the parties,
neither party shall have the right to assign, transfer or otherwise
dispose of its rights or obligations under this Agreement.
	 
	12.	 	
Incorporation of Terms in the Licence Agreement
	 
	12.1	 	
The following clauses of the Licence Agreement are hereby expressly
incorporated into this Agreement:
	 
	 	 	
4.1-4.5 (IPR Indemnity)
	 
	 	 	
10 (Limitation of Liability);
	 
	 	 	
11 (Insurance)
	 
	 	 	
12 (Dispute Resolution/Compliance)
	 
	 	 	
13 (Address for Service)
	 
	13.	 	
Miscellaneous
	 
	13.1	 	
Any notice, consent or the like to be given by either party to the other
in connection with this Agreement shall be in writing and sent by first
class recorded delivery to the address of the recipient set out herein or
to such other address and shall for the purpose be notified in writing by
the recipient.
	 
	13.2	 	
This Agreement (as amended from time to time) together with any document
expressly referred to in any of its terms, contains the entire agreement
between the parties relating to the subject matter covered and supersedes
any previous agreements, arrangements, undertakings or proposals, written
or oral, between the parties in relation to such matters.
	 
	13.3	 	
No variation or waiver of any of the terms hereof shall be valid unless
in writing signed by or on behalf of those parties.
	 
	13.4	 	
The failure by either party to exercise or enforce any rights conferred
upon it by this Agreement shall not be deemed a waiver of any such right
or operate so as to bar the exercise or enforcement thereof at any time or
times thereafter.
	 
	13.5	 	
The invalidity or unenforceability of any part of this Agreement shall
not affect or prejudice the validity or enforceability of the remainder of
this Agreement.
	 
	13.6	 	
The construction, validity or performance of this Agreement shall be
governed by and construed in accordance with the laws of England and
Wales.

EXECUTED by the parties hereto on the date first above written.

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

	 	 	 	 	 	 	 
	Signed by for and on behalf of	 	 	
	)	 	 
	 	 	 	
	)	 	 
	HUTCHISON WHAMPOA 3G IP	 	 	
	)	           /s/	 
	S.A.R.L.	 	 	
	)	

	 	 	 	
 	)	 	Authorised signatory
	 
	 
	Signed by for and on behalf of	 	 	
	)	           /s/	 
	TELECOMMUNICATION SYSTEMS INC.	 	 	
	)	

	In the presence of	 	 	

 
	)	 	Authorised signatory
	 	 	 	
	)	 	 

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

Schedule

TCS SERVICES MANAGERS

[*]

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

Schedule

SUPPORT SERVICES

	 	 	 
	1.	 	
Support Services
	 
	1.1	 	
The Software Fault Services shall comprise the Help Desk, remote access
and, as required, on-site services.
	 
	1.2	 	
TCS shall provide the Software Fault Services to the H3G Affiliates
listed in Schedule 5 of the Licence Agreement from time to time.
	 
	1.3	 	
TCS shall provide the Help Desk and keep the Help Desk available as
provided below and the Help Desk will:
	 
	1.3.1	 	
Subject to Clause 6.1.6 discuss Software Fault messages or abnormal
situations which may arise within the Supplied Software;
	 
	1.3.2	 	
Diagnose, isolate, and identify problems in the Supplied Software.
	 
	1.3.3	 	
Subject to Clause 8.3, diagnose malfunctions or interface problems with
equipment which is not a part of the Supplied Software provided by TCS but
is covered by the interface specification for the Supplied Software. TCS
does not have the responsibility for correction or malfunction of such
interface equipment; and
	 
	1.3.4	 	
Provide solutions for Software Faults, which may be in the form of a
corrected copy of the Supplied Software or a Maintenance Release until a
New Version or New Release of the Supplied Software can be installed.
	 
	1.4	 	
TCS shall promptly, in accordance with the Service Levels and at its own
expense correct all Software Faults provided that such Software Faults are
promptly brought to TCS’s attention by H3G.
	 
	1.5	 	
The Support Services include, without limitation, assistance with remote
installation and/or implementation of Modification of the Supplied
Software by the provision of corrective or replacement software as more
fully described in paragraph 1.3 above.
	 
	1.6	 	
When a Software Fault is reported, TCS shall liaise directly with the H3G
Affiliate reporting the fault (“Reporting Affiliate”). If a Maintenance
Release is required to resolve the Software Fault TCS shall supply such
Maintenance Release or other Support Services directly to the Reporting
Affiliate for testing and acceptance.
	 
	1.7	 	
When TCS issues a New Version or Maintenance Release to H3G, TCS shall
supply such deliverables and any other Support Services to the H3G Central
Maintenance Team for testing and acceptance or such H3G Affiliate as H3G
directs.

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

	 	 	 
	1.8	 	
The Help Desk and remote access Support Services shall be available
continuously during the Service Hours. On-site Support Services shall be
available as required under this Agreement.
	 
	1.9	 	
In performing the Support Services, TCS shall comply with the Service
Levels set out below.
	 
	2.	 	
Service Levels
	 
	2.1	 	
Severity Classifications

	 	 	 
	 	 	[*]

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

	 	 	 
	2.1.3	 	
Minor
	 
	 	 	
A Software Fault that has a minimal impact on end-user service,
with no important consequence on any key function, and for which a
satisfactory workaround exists including, without limitation, the
following:-
	 
	 	 	
•    minor items of functionality of the Supplied Software are not met;

	 
	 	 	

•    non-critical data is unavailable.
	 
	2.1.4	 	
Query
	 
	 	
Routine queries regarding the functionality of the software, typically
identified by first line support personnel.
	 
	2.1.5	 	
The parties shall agree the Severity Classification of the Software
Fault at the time the support call from H3G is received. In the event
that the parties disagree as to the Severity Classification of the
Software Fault, H3G shall be solely responsible for determining the
Severity Classification of the relevant Software Fault. In the event
that, in TCS’s opinion, H3G are consistently overstating the severity of
Software Faults, the parties shall deal with this matter in accordance
with the escalation time-scales set out below in Clause 2.1.6 of this
Schedule.
	 
	2.1.6	 	
Resolution Times
	 
	 	
All resolution times shall be calculated from the time when H3G reports a
Software Fault to TCS (and H3G confirms that the Software Fault is caused
by the Supplied Software) until H3G is satisfied (acting reasonably),
having received notice from TCS, that the Software Fault has been
resolved or its status has been downgraded. When a Software Fault is
downgraded, all resolution times shall be calculated as above but from
the time that H3G is satisfied (acting reasonably) that, having received
notice from TCS, the Software Fault has been downgraded.

[*]

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

[*]

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

[*]

	 	 	 
	3.	 	Service Credit

	 
	3.1	 	
If a Software Fault is not cleared within the restoration times specified
in paragraph 2.1.6 above, then the following points shall be allocated to
TCS as shown below and the deduction shall be made from the subsequent
Quarterly Service Charge (QSC) (as described in Schedule 3):

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

[*]

	 	 	 
	3.2	 	
The maximum service credits that can be claimed by H3G in any Service
Period is, subject to paragraph 3.3 of this schedule [*] per cent of the
QSC.
	 
	3.3	 	
In the event of a Repetitive Critical Software Fault, TCS shall pay H3G
[*] per cent of the QSC.
	 
	4.	 	
Reporting Obligations

	 
	4.1	 	
TCS shall report to H3G quarterly on its performance of the Support
Services measured against the Service Levels. Such report shall, for the
previous month:

	 	 	 
	4.1.1	 	
list the number of Software Faults logged;
	 
	4.1.2	 	
list the number of Software Faults resolved;
	 
	4.1.3	 	
list the number of Software Faults outstanding; and
	 
	4.1.4	 	
highlight the number of instances and extent to which the Service Levels
were not met.
	 
	4.1.5	 	
give details of each Critical and Major Software Fault that occurred in
each Territory operating the Supplied Software during the previous Service
Period.

	 	 	 
	5.	 	
Remote Access

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

H3G shall provide remote access via an IP (Internet Protocol) security
tunnel from a third-line support workstation to the H3G VPN (Virtual
Private Networks) concentrator with one-time password control to gain
access to the specific parts of the network which relate to the Location
Server System.

H3G will issue TCS with VPN client software to access the Location Server
System remotely.

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

Schedule

CHARGES SCHEDULE

[*]

 

Schedule

TCS SERVICE CENTRES

	 	 	 
	1.	 	
Seattle, Washington, USA
	 
	2.	 	
Annapolis, Maryland, USA
	 
	3.	 	
Subject to Clause 3.15, London, United Kingdom

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

SCHEDULE

Section 1 — Project Staff

[*]

Section 2 — Steering Committee

[*]

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

SCHEDULE

Initial Global Work Package

Initial Global Work Package

Hutchison Whampoa 3G IP S.A.R.L

And

TeleCommunication Systems, Inc.

GLOBAL WORK PACKAGE

ORDER FORM

THIS Work Package is entered into between Hutchison 3G IP S.A.R.L. and
Telecommunication Systems Inc. (“TCS”) and is made on the terms of the Services
Integration Agreement (the “Agreement”) agreed between the parties as of 31
January 2002. The terms of the Agreement are incorporated into this Work
Package Order Form in full, subject to any express modifications contained in
Schedule One to this Order Form and the rules of interpretation contained in
Clause 1 of the Agreement therefore apply to this Global Work Package.

TCS shall provide the Services as set out in Section A1 (Description of
Services) to produce the Deliverables (as set out in Section A3) in accordance
with the Project Plan (set out in Section A5) and the Statement of
Requirements/Specification (as set out in Section A4) and so as to achieve the
Key Milestones (as set out in Section A6) and Acceptance Tests set out in
Section A2 (or as agreed pursuant to the Agreement) and within the agreed
resource requirements and the fixed fee set out in Section A7 (Project
Resources).

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

Section A1

Description of Services

Hutchison 3G UK Limited and H3G S.p.A. Italy wish TCS to provide four Data
Centre Installations and two Test Installations (i.e. install the Location
Server System in two data centres in the United Kingdom (located at Hemel
Hempstead and Birmingham respectively), two data centres in Italy (located at
Milan and Rome respectively), a production-ready full test network in the
United Kingdom (located at Maidenhead) and a production-ready full test network
in Italy (located at Milan)).

TCS will customise the Supplied Software to meet H3G’s Requirements and will
integrate the Supplied Software with H3G’s test lab equipment, core network
elements and enterprise architecture including, without limit, with new or
initial versions of the following:

	 	 	 
	1.	 	
OSA Gateway;
	2.	 	
AGPS Capable UE;
	3.	 	
PPG;
	4.	 	
MSC, HLR, SGSN
	5.	 	
Assistance Data Feeds
	6.	 	
Manager of Managers (MOM)

TCS shall develop the Acceptance Test Plan after undertaking extensive research
into H3G’s lab configuration, core network elements and relevant processes and
procedures. TCS anticipates utilising its largest deployment team to develop
such Acceptance Test Plan and will leverage the knowledge gained in the UK Test
Installation to reduce the time, cost and resource allocation of future
deployments.

In providing the Project Plan (set out in Section A5), TCS has allocated
sufficient time and resources during the UK Test Installation and Italy Test
Installation to integrate the Supplied Software with H3G’s test lab equipment,
core network elements and enterprise architecture. Pursuant to H3G’s required
dates, the Project Plan contains no contingency time.

H3G will provide TCS with a Location Server Build Requirements document for
integrating the Supplied Software into the H3G Environment. TCS engineers will
assist H3G with the finalisation of this document so that TCS fully understands
H3G’s core network environment.

In addition to providing H3G with the standard documentation for the Supplied
Software, TCS will provide H3G with hardware configuration documents setting
out the configuration settings that are unique to H3G and which have been
identified, documented and tested prior to their documentation by TCS for
inclusion in the Test Network Documentation.

TCS will ensure that the testing of components [*] results in a high quality deployment into a
production data centre.

10.3.1.1 Section A1.1 Test Installation

Note:  Information in this document marked
 with a "[*]" has been omitted and filed separately with the U.S. Securities and
Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

[*]

 

	 	 	 
	 
	Section A1.2 Data Centre Installation	 	 

[*]

 

Section A2

Deliverables and Acceptance Criteria

TCS will provide the Services in order to achieve Acceptance of the
Deliverables as set out in the document entitled XLP Testing Statement of Work
(see Appendix 1).

[*]

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

	 	•	 	Fitness for purpose
– must fulfil its intended purpose.
	 
	 	•	 	Completeness – all sections of the Deliverable must be
present with no sections remaining to be determined. The Deliverable
must be easily understandable on a ‘first pass’ without the need to
refer to supporting documents.
	 
	 	•	 	Detail – the Deliverable must be sufficiently detailed as
required by customary industry practice.
	 
	 	•	 	Technically feasible – any Acceptance Tests set out in a
Deliverable must be straightforward and clear and must provide
adequate functionality and performance testing.
	 
	 	•	 	Consistent – any Deliverable must be both internally
consistent and consistent with all referenced documents.
	 
	 	•	 	Clearly Presented – any Deliverable must be well structured,
unambiguous and make effective use of tables, diagrams and other
descriptive techniques.
	 
	 	•	 	Issues and Assumptions – any issues and assumptions set out
in a Deliverable must be factually correct and current with a
process as to how they can they be addressed. Any ‘un-stated
assumptions’ identified in the review process must be addressed
prior to any documentary Deliverable’s Acceptance. In other words,
when the Deliverable in question is reviewed, any additional issues
and assumptions that the completed Deliverable gives rise to may be
documented on the formal review of such Deliverable. These must be
addressed and either corrected, added or agreed with H3G that no
action is taken before the Deliverable will be accepted.
	 
	 	•	 	Formal Review – all Deliverables will be subject to a
documented formal review and all review points must be addressed and
agreed by H3G and TCS before final acceptance.

	2.	 	All software, hardware and other Deliverables that will form part of the
Location Server System, including the Supplied Software shall meet the
Acceptance Tests set out in the Factory Acceptance Test Plans, Site
Acceptance Test Plans, Integration Acceptance Test Plans and the Vendor
Acceptance Test Plan, hereafter referred to as Test Plans that, in turn,
have first been Accepted by H3G:
	 

[*]

 

[*]

 

Section A5

Project Plan

See hard copy Gantt Chart, Version 1.0

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

Section A6

Key Milestones

[*]

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

     N.B. Key Milestones highlighted in bold signify that payment becomes due after
such Key Milestone has been achieved.

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

Section A7

Project Resources

The Key Project Staff from H3G and the Supplier are listed below. All staff
from the Supplier are to be named prior to the payment of the first invoice.

[*]

Roles and Responsibilities

	 	 	 
	

	Role	 	
Description of Responsibilities
	

	Deployment Manager	 	
The Deployment Manager will

Own deployment strategy and plans

Manage all deployment office activities

Handle resource planning

Manage coordination between H3G and TCS

Ensures effective communications (internal/external to team)

Resolve deployment critical issues

Be held accountable for Installation success

	

	Networking Engineer	 	
Install Location Server into H3G labs and data centres

Connect Location Server into Core Network

Connect Location Server into H3G Enterprise Architecture (NESP)

Connect Location Server internally

	

	Systems Engineer	 	
Install Location Server Hardware & 3rd Party software into H3G
labs and data centres
	

	Test Engineer	 	
Update test plan as necessary from XyLab A

Perform test according to Location Server test plan

Work with Test Manager at H3G

Work with Other H3G vendors to ensure test success
	

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

	2	 	 Roles

	 	•	 	H3G UK and H3G Italy representative fulfils Location Server
Platform purchasing function for Genesis Test Facility and
Hemel/Birmingham Data Centres and the Italy Test Facility and
Rome/Milan Data Centres, respectively.
	 
	 	•	 	H3G UK and H3G Italy representative fulfils Lab/Data Centre
facilities manager function.
	 
	 	•	 	H3G UK and H3G Italy representative fulfils Testing Lead/Manager
function.
	 
	 	•	 	H3G UK and H3G Italy representative fulfils Location Server Project
Manager function.

Responsibilities

[*]

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

FIXED FEE — ITALY

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

	 	 	 	 	 	 	 
	

	No	 	
Milestone
	 	Target Date
	 	Payment
	

	1.	 	
Initial Installation of
Supplied Software
(Version 1.1) to Italy
Test Installation
	 	[*]
	 	[*]

(ie. [*] per cent of
Third Party Software
Fee for the Test
Installation)
	

	2.	 	
Acceptance by H3G of
Supplied Software
(Version 1.4) in Italy
Test Installation
	 	[*]
	 	[*]

(Test Installation

Fixed Fee)
	

	3.	 	
Installation of
Supplied Software in
Italy Data Centre
Installation
	 	[*]
	 	[*]

([*] per cent the of
Third Party Software
Fee for the 1st Data
Centre Installation)
	

	4.	 	
Installation of
Supplied Software in
2nd Italy Data Centre
Installation
	 	[*]
	 	[*]

([*] per cent of Third
Party Software Fee for
the 1st Data Centre
Installation)
	

	5.	 	
Acceptance of Supplied
(Version 2) Software in
both Italy Data Centre
Installations
	 	[*]
	 	[*] (Data Centre
Installation Fixed Fee)
 

[*] (“Data Centre
Installation Fixed
Fee”)
 

[*] (Third Party
Software Fee for the
2nd Data centre
Installation)
 

[*] ([*] % of Third
Party Software Fee for
Test Installation)
	

	6.	 	
Initial Training
	 	[*]
	 	[*]
	

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

Sub-total to be paid: [*]

FIXED FEE — UK

	 	 	 	 	 	 	 
	

	No.	 	
Milestone
	 	Target Date
	 	Payment
	

	1.	 	
Initial Installation of
Supplied Software
(Version 1.1) to UK
Test Installation
	 	[*]
	 	[*]

(ie. [*] of Third Party
Software Fee for Test
Installation)
	

	2.	 	
Acceptance by H3G of
Supplied Software
(version 1.4) in UK
Test Installation
	 	[*]
	 	[*]

(Test Installation

Fixed Fee)
	

	3.	 	
Installation of
Supplied Software in UK
Data Centre
Installation
	 	[*]
	 	[*]

([*]% of Third Party
Software fee for 1st
Data Centre
Installation)
	

	4.	 	
Installation of
Supplied Software in
2nd UK Data Centre
Installation
	 	[*]
	 	[*]

([*]% of Third Party
Software Fee for Test
Installation)
	

	5.	 	
Acceptance of Supplied
Software (Version 2) in
both UK Data Centre
Installations
	 	[*]
	 	[*] (“Data Centre
Installation Fixed
Fee”)
 

[*] (“Data Centre
Installation Fixed
Fee”)
 

[*] (Third Party
Software Fee for 2nd
Data Centre
Installation)
 

[*] ([*]% of Third
Party Software Fee for
Test Installation)
	

	6.	 	
Initial Training
	 	[*]
	 	[*]
	

Sub-total to be paid: [*]

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

Overall Total Cost of Work Package: [*]

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

	 	 	/s/
	....................................

Signature	 	
.......................................

Date
	For and on behalf of	 	 
	Hutchison 3G IP S.A.R.L	 	 
	 	 	 
	 	 	/s/
	......................................

Signature	 	
.........................................

Date
	For and on behalf of	 	 
	Telecommunication Systems Inc.	 	 

 

SCHEDULE

Functional Specification

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

SCHEDULE

Recommended Platform/Third Party Software

[*]

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

 

SCHEDULE

TCS Competitors

1. [*]

2. [*]

3. [*]

4. [*]

5. [*]

6. [*]

Note:  Information in this document marked with a "[*]" has been omitted
and filed separately with the U.S. Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.ex10-2

 

EXHIBIT 10.2

AMERICAN MANAGEMENT SYSTEMS, INCORPORATED

OUTSIDE DIRECTORS STOCK-FOR-FEES PLAN

(as approved by the shareholders on May 18, 1995)

ARTICLE I — PURPOSE OF THE PLAN

     The Outside Directors Stock-for-Fees Plan (the “Plan”) is intended to
provide a means by which individuals who serve as outside directors of American
Management Systems, Incorporated (the “Corporation”) may increase their
proprietary interest in the Corporation by electing to receive the annual
retainer and other fees earned in connection with service as a director in the
form of the Corporation’s $0.01 par value common stock (the “Common Stock”)
rather than in cash.

ARTICLE II — ELIGIBILITY

     Each member of the Board of Directors of the Corporation who is not and
has not been an officer or employee of the Corporation (“Outside Director”)
shall be eligible to participate in the Plan.

ARTICLE III — SHARES SUBJECT TO PLAN

     The number of shares authorized to be issued pursuant to the Plan is
150,000 */ shares of the Corporation’s Common Stock subject to adjustment as
provided herein. Those shares may consist, in whole or in part, of authorized
and unissued shares or shares previously acquired or to be acquired by the
Corporation and held in treasury. In the event of any stock dividend, stock
split or other event that is functionally equivalent to a stock split or stock
dividend, the number of remaining shares authorized for issuance under this
Plan shall be adjusted proportionately.

ARTICLE IV — ELECTION TO RECEIVE STOCK

     Each Outside Director shall be permitted to receive the remuneration
otherwise payable to the Outside Director as an annual retainer and for
attending meetings of the Board of Directors and meetings of the committees of
the Board of Directors (“Director’s Fees”) in the form of Common Stock rather
than cash in accordance with the following provisions:

     (a)  Election to Participate. Each Outside Director shall have the right
to elect to receive Director’s Fees in the form of Common Stock rather than
cash by tendering an irrevocable written election to the Secretary of the
Corporation pursuant to which all Director’s Fees otherwise payable to the
Outside Director shall be paid in the form of Common Stock as provided in (b)
below. Each Outside Director may elect to have one-half or all of the
Director’s Fees paid in the form of Common Stock. Such election shall become
effective six (6) months after its delivery to the Secretary of the Corporation
by the Outside Director. Such election shall remain in effect until the
earlier of (i) the date six (6) months after such Outside Director shall have
delivered to the Secretary of the Corporation irrevocable written notice that
his or her participation shall cease as of the date six months following
delivery of the notice, or (ii) the date on which such Outside Director
terminates as a member of the Board of Directors by reason of resignation,
non-reelection, death, or disability. Any Outside Director who having
terminated participation in the Plan or having failed to elect to participate
in the Plan may elect to participate in the Plan as of the date six (6) months
following delivery of irrevocable written notice of such election to the
Secretary of the

	*/	 	As adjusted to reflect a 3-for-2 split of the Common Stock effective
January 5, 1996.

 

 

Corporation. An Outside Director who does not elect to have Director’s
Fees paid in Common Stock shall receive his or her remuneration in cash at such
times that such remuneration is otherwise due.

     (b)  Issuance of Shares. If an Outside Director elects to receive payment
of Director’s Fees in the form of Common Stock, such Common Stock shall be
issued as soon as practicable after the annual meeting of shareholders or
meeting of the Board of Directors or committee of the Board of Directors to
which such remuneration relates. The number of shares of Common Stock to be
issued to such Outside Director shall be determined by dividing:

	 	(i)	 	the remuneration otherwise payable to the Outside
Director, by
	 
	 	(ii)	 	the closing price of the Corporation’s Common
Stock on the determination date (or, if the Corporation’s
Common Stock is not traded on such date, on the trading day
immediately preceding the date of the determination date),
rounding up or down any fractional share to the nearest whole
share.

     The determination date shall be the date of the relevant meeting of the
Board of Directors for which fees are payable.

     (c)  Restrictions on Shares. Shares of Common Stock issued under this Plan
shall be free of any restrictions except for restrictions applicable under the
Securities Exchange Act of 1934, as amended.

ARTICLE V — AMENDMENT AND TERMINATION

     The Board of Directors of the Corporation may amend, modify, alter or
terminate the Plan; provided, however, that without the approval of the
shareholders of the Corporation:

     (a)  the number of Shares which may be reserved for issuance under the Plan
may not be increased except as provided in Article III hereof;

     (b)  the class of individuals who are eligible to participate in the Plan
shall not be modified; and

     (c)  the benefits accruing to Outside Directors under the Plan shall not be
increased materially;

     provided, further, that the Plan may not be amended, modified, or altered
more than once in any six (6) month period.

ARTICLE VI — MISCELLANEOUS

     (a)  This Plan shall be administered by the Compensation Committee of the
Board of Directors.

     (b)  The Plan shall be construed in accordance with and governed by the
laws of the State of Delaware.

     (c)  This Plan shall become effective on the date on which it is approved
by the shareholders of the Corporation.

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