Document:

EX-10.1

 

Exhibit 10.1

SUPPORT AGREEMENT

February 19, 2007

Vulcan Materials Company

1200 Urban Center Drive

Birmingham, Alabama 35242

Attention: Donald M. James

Chairman and CEO

Ladies and Gentlemen:

     The undersigned (the “Shareholders,” and each a “Shareholder”) understand that
Vulcan Materials Company, a New Jersey corporation (“Vulcan”), and Florida Rock Industries,
Inc., a Florida corporation (“Florida Rock”), propose to enter into an Agreement and Plan
of Merger, dated as of the date hereof (the “Merger Agreement”), providing for, among other
things, the Florida Rock Merger, in which each share of common stock, par value $0.10 per share, of
Florida Rock (the “Florida Rock Common Stock”) (other than Excluded Shares) issued and
outstanding immediately prior to the Effective Time will be converted into the right to receive, at
the election of the holder thereof and subject to proration in accordance with the Merger
Agreement, the Cash Consideration or the Stock Consideration. Capitalized terms used without
definition in this letter agreement shall have the meanings ascribed thereto in the Merger
Agreement.

     Each Shareholder in its capacity as such, is entering into this letter agreement in
consideration of, and as a condition to, Vulcan’s willingness to enter into the Merger Agreement
and to consummate the transactions contemplated thereby.

     Each Shareholder confirms its agreement with Vulcan as follows:

     1. Each Shareholder represents, warrants and agrees that (a) the total number of shares of
Florida Rock Common Stock owned, directly or indirectly, beneficially and of record by the
Shareholders, other than the Anne D. Baker Living Trust, in the aggregate is approximately 15.5
million (b) such Shareholder is, directly or indirectly, the record and beneficial owner of the
Specified Shares (as defined below), with sole or shared with a person or entity that is also a
party hereto, voting and dispositive power over such Specified Shares, (b) except as set forth on
Schedule II, the Specified Shares are owned by such Shareholder free and clear of all Liens and (C)
such Shareholder has the power to vote all Specified Shares in the manner contemplated herein and
that there have been no proxies heretofore given in respect of any or all of the Specified Shares
or if given, have heretofore been revoked. “Specified Shares” means the number of shares
of Florida Rock Common Stock designated as such on Schedule I hereto; provided that
if the number of shares designated as Specified Shares on Schedule I hereto would in the
aggregate equal 10% or more of the outstanding voting stock of

 

 

Florida Rock, then Schedule I shall be adjusted so that the number of shares designated as
Specified Shares thereon would in the aggregate equal the greatest number that represents less than
or equal to 9.9% of the outstanding voting stock of Florida Rock; provided,
further, that to the extent any of the Specified Shares are forfeited pursuant to any Lien,
Baker Holdings L.P., at Vulcan’s request, shall increase the number of its Specified Shares in an
amount equal to the number of shares so forfeited.

     2. Each Shareholder agrees that it will not, directly or indirectly, sell, transfer, assign,
pledge, encumber or otherwise dispose of any of the Specified Shares or enter into any contract,
option or other arrangement or understanding with respect thereto (including any voting trust or
agreement and the granting of any proxy)other than: (a) pursuant to the Mergers, (b) foreclosures
pursuant to pledges or encumbrances described on Schedule I or (c) with the prior written consent
of Vulcan, or (d) as set forth on Schedule II. If so requested by Vulcan, each Shareholder agrees
that any certificates representing Specified Shares shall bear a legend stating that they are
subject to this letter agreement.

     3. At every meeting of the shareholders of Florida Rock, called, and at every postponement or
adjournment thereof, each Shareholder irrevocably agrees to vote the Specified Shares entitled to
be voted thereat or to cause any such Specified Shares to be voted: (i) in favor of approval of
the Merger Agreement, and (ii) against (A) any proposal made in opposition to approval of the
Merger Agreement or in competition or inconsistent with the Mergers or any other transaction
contemplated by the Merger Agreement, (B) any Acquisition Proposal, (C) any change in the
management or board of directors of Florida Rock (other than in connection with the transactions
contemplated by the Merger Agreement), (D) any action or agreement that would result in a breach of
any representation, warranty, covenant or agreement or any other obligation of Florida Rock under
the Merger Agreement or of such Shareholder under this letter agreement and (E) any other action or
proposal involving Florida Rock that could reasonably be expected to prevent, impede, interfere
with, delay, postpone or adversely affect the Mergers. The obligations of each Shareholder
specified in this paragraph 3 shall apply whether or not (x) the Board of Directors of Florida Rock
shall have effected a Change in Florida Rock Recommendation, or (y) Florida Rock breaches any of
its representations, warranties, agreements or covenants set forth in the Merger Agreement.

     4. Each Shareholder agrees to make Stock Elections with respect to the number of Specified
Shares set forth on Schedule I hereto.

     5. Each Shareholder represents and warrants that there is, as of the date hereof, and as of
the Closing Date there will be, no binding commitment or present plan or intention to sell,
exchange or otherwise dispose of any of the Holdco Common Stock that such Shareholder will receive
pursuant to or in connection with the Florida Rock Merger.

     6. Each Shareholder represents and warrants that (a) it has all necessary power and authority
to enter into this letter agreement; (b) this letter agreement has been duly authorized, executed
and delivered by such Shareholder and is enforceable

 

 

against such Shareholder in accordance with its terms; and (c) neither the execution or
delivery of this Agreement nor the consummation by such Shareholder of the transactions
contemplated hereby will violate any provisions of any statute, law, ordinance, regulation, rule,
code or other requirement of a Governmental Entity or any order, injunction, decree or judgment
applicable to such Shareholder or any contract, agreement or other commitment to which such
Shareholder is a party or by which such Shareholder or any of such Shareholder’s properties or
assets (including such Shares and Derivative Securities) is bound, other than such violations of
contracts, agreements or commitments as would not prevent, impede or delay the performance by such
Shareholder of its obligations hereunder or impose any liability or obligation on the Company or
any Subsidiaries or Affiliates thereof.

     7. This letter agreement shall terminate upon the earlier to occur of (a) the termination of
the Merger Agreement in accordance with its terms or (b) the Effective Time; provided, that
termination shall not prevent any party from seeking remedies against any other party hereto for
breach of this letter agreement.

     8. This agreement shall be governed by, and construed in accordance with, the laws of the
State of New York, without giving effect to principles of conflict of laws. This letter agreement
may be executed in counterparts, each of which when executed shall be deemed to be an original but
all of which when taken together shall constitute one and the same agreement.

     9. Each Shareholder recognizes and acknowledges that a breach by it of any covenants or
agreements contained in this letter agreement will cause Vulcan to sustain damages for which it
would not have an adequate remedy at law for money damages, and therefore each Shareholder agrees
that in the event of any such breach, Vulcan shall be entitled to specific performance of such
covenants and agreements and injunctive and other equitable relief in addition to any other remedy
to which it may be entitled, at law or in equity.

     10. The effectiveness of this letter agreement shall be conditioned upon the execution and
delivery of the Merger Agreement by Vulcan and Florida Rock.

     11. Each Shareholder agrees that this letter agreement and the obligations hereunder shall
attach to the Specified Shares and shall be binding upon any person or entity to which legal or
beneficial ownership of the Specified Shares shall pass, whether by operation of law or otherwise.
Each Shareholder understands and acknowledges that Vulcan is entering into the Merger Agreement in
reliance upon the execution and delivery of this letter agreement by such Shareholder.

     12. No Shareholder makes any agreement or understanding herein in such Shareholder’s capacity
as a director or officer of Florida Rock. Each Shareholder executes this letter agreement solely
in such Shareholder’s capacity as a record and beneficial owner of Shares and nothing herein will
limit or affect any actions taken by any Shareholder or any designee of a Shareholder in such
Shareholder’s capacity as an officer or director of Florida Rock or any of its Subsidiaries.
Notwithstanding anything

 

 

to the contrary contained herein, the obligations of each Shareholder specified in this
Agreement shall apply whether or not (x) the Board of Directors of Florida Rock shall have effected
a Change in Florida Rock Recommendation, or (y) Florida Rock
breaches any of its representations, warranties, agreements or covenants set forth in the Merger Agreement.

[SIGNATURE PAGES FOLLOW]

 

 

     Please confirm that the foregoing correctly states the understanding between us and you by
signing and returning to us a counterpart hereof.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	BAKER HOLDINGS, L.P.,
	 
	 	 	 	 
	 	 	by:BAKER INVESTMENT HOLDINGS,

INC., as general partner
	 
	 	 	 	 
	 

	 	by:
	 	/s/ John D. Baker, II
	 

	 	 	 	 
	 

	 	 	 	John D. Baker, II, President
	 
	 	 	 	 
	 	 	EDWARD L. BAKER LIVING TRUST
	 
	 	 	 	 
	 

	 	by:
	 	/s/ Edward L. Baker
	 

	 	 	 	 
	 

	 	 	 	Edward L. Baker, as trustee
	 
	 	 	 	 
	 	 	EDWARD L. BAKER
	 
	 	 	 	 
	 

	 	by:
	 	/s/ Edward L. Baker
	 

	 	 	 	 
	 

	 	 	 	Edward L. Baker
	 
	 	 	 	 
	 	 	JOHN D. BAKER II LIVING TRUST
	 
	 	 	 	 
	 

	 	by:
	 	/s/ John D. Baker, II
	 

	 	 	 	 
	 

	 	 	 	John D. Baker II, as trustee
	 
	 	 	 	 
	 	 	ANNE D. BAKER LIVING TRUST
	 
	 	 	 	 
	 

	 	by:
	 	/s/ Anne D. Baker
	 

	 	 	 	 
	 

	 	 	 	Anne D. Baker, as trustee

 

 

Confirmed as of the date

first above written:

VULCAN MATERIALS COMPANY

	 	 	 	 	 
	By:

	 	/s/ Donald M. James
	 	 
	 

	 	 	 	 
	 

	 	Name: Donald M. James	 	 
	 

	 	Title: Chairman and Chief Executive Officer	 	 

 

 

SCHEDULE I

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Stock Election	 
	Shareholder Name	 	Specified Shares	 	 	 	Shares
	1. Baker Holdings, L.P.
	 	 	2,855,838	 	 	 	 	 	2,855,838	 
	 
	 	 	 	 	 	 	 	 	 	 
	2. Edward L. Baker
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	a. Edward L. Baker Living Trust—Trustee
	 	 	326,354	 	 	 	 	 	188,644	 
	 
	 	 	 	 	 	 	 	 	 	 
	b. Edward L. Baker
	 	 	50,934	 	 	 		 	0	 
	 
	 	 	 	 	 	 	 	 	 	 
	3. John D. Baker II
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	a. John D. Baker II Living Trust —Trustee
	 	 	2,725,181	 	 	 	 	 	1,362,591	 
	 
	 	 	 	 	 	 	 	 	 	 
	4. Anne Baker
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	a. Anne D. Baker Living Trust
	 	 	517,657	 	 	 	 	 	258,829	 
	 
	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	6,475,964	 	 	 	 	 	4,665,902EX-10.1

 

Transatlantic Holdings, Inc.

80 Pine Street

New York, New York 10005

TIRS LICENSE AMENDED AND RESTATED AGREEMENT COVER PAGE

Allied World Assurance Company, Ltd (“Licensee”) has agreed to license the TIRS computer software
from Transatlantic Holdings, Inc. (“THI”) on the terms and conditions set forth in this License
Agreement.

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Customer Name

	 	 	Contact Information	 
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	Allied World Assurance Company, Ltd

	 	 	Name: Mike Fullen	 
	 	 

	 	 	Telephone: 441-278-5526 Fax No.	 
	 	 

	 	 	Email Address: Mike.Fullen@awac.com	 
	 	 

	 	 	Mailing Address: 29 Richmond Road,	 
	 	 

	 	 	Pembroke HM 08, Bermuda	 
	 	 
	 	 	 	 
	 	 	 	 	 	 
	 	Initial Term Start Date

	 	 	Initial Term End Date	 
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	November 17, 2006

	 	 	November 17, 2009	 
	 	 

	 	 	Subsequent to the Initial Term, this
Agreement shall automatically renew
for successive renewal terms of one
(1) year each (Renewal Term) unless
either party notifies the other of its
desire not to renew prior to the
expiration of the Initial Term or
relevant Renewal Term.	 
	 	 
	 	 	 	 
	 	 	 	 	 	 
	 	TIRS Software Version

	 	 	Maintenance and Upgrades	 
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	     TIRS Version 8.000

	 	 	THI will provide the upgrades and
updates to the TIRS Software that are
generally made available to licensees
of the TIRS Software.	 
	 	 
	 	 	 	 
	 	 	 	 	 	 
	 	Required Environment

	 	 	Training	 
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	Unix server running Informix IDS (database
server) version 9.x or higher and Windows NT,
2000, or XP-based PC clients running Informix
Connect version 9.x or higher.
	 	 	 	 
	 	 
	 	 	 	 
	 	 	 	 	 	 
	 	Initial Term License Fees

	 	 	Payment Due Date	 
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	Year 1: $1,300,000

	 	 	December 15, 2006	 
	 	Year 2: $1,400,000

	 	 	October 17, 2007	 
	 	Year 3: $1,500,000

	 	 	October 17, 2008	 
	 	Total:  $4,200,000
	 	 	 	 
	 	 
	 	 	 	 
	 	Total Fee paid upfront $3,900,000

	 	 	February 15, 2007	 
	 	 	 	 	 	 

 

 

11/14/03

Amended and Restated SOFTWARE LICENSE AGREEMENT

TERMS AND CONDITIONS

     This Amended and Restated Software License Agreement Terms and Conditions (“Agreement”) is
entered into as of November 17, 2006 (the “Effective Date”) by and between Transatlantic Holdings,
Inc. (“THI”) and Allied World Assurance Company, Ltd (“Licensee”).

	 	1.	 	LICENSE GRANT
	 
	 	1.1.	 	Subject to the terms and conditions set forth herein, THI hereby grants to
Licensee, a worldwide, nontransferable, nonexclusive, nonassignable, limited license
and right to access, use, copy (as expressly permitted herein), and modify THI’s The
International Reinsurance Systems computer software product(s) (as identified on the
Cover Page of this Agreement) together with all documentation and other materials
accompanying such product(s) (together, the “TIRS Software”).
	 
	 	1.2.	 	Neither this Agreement nor the TIRS Software may be sold, leased, assigned,
sublicensed or otherwise transferred by Licensee, in whole or in part, unless otherwise
agreed in writing by THI.
	 
	 	2.	 	SCOPE
	 
	 	2.1.	 	Licensee’s use of the TIRS Software shall be limited to use to process only
Licensee’s own internal business. Licensee is authorized to make a reasonable number
of copies of TIRS Software for the purposes of quality assurance, testing, backup and
disaster recovery purposes. Licensee will keep records of each copy made, where such
copy is located and the authorized user thereof. Such records will be available for
inspection at any reasonable time by THI upon ten (10) days notice.
	 
	 	2.2.	 	Licensee has the right to develop interfaces to the TIRS Software in
conjunction with its use of the TIRS Software. Such Licensee-developed software
interfaces will remain the intellectual property of Licensee or its vendors.
	 
	 	3.	 	DELIVERY; INSTALLATION; SOURCE CODE ESCROW
	 
	 	3.1.	 	The TIRS Software will be supplied as a run-time machine executable application
on a date to be agreed between the parties. Source code for the TIRS Software is not
licensed to Licensee, and will not be provided to Licensee unless otherwise agreed
between the parties in writing.
	 
	 	3.2.	 	Licensee is responsible for providing the following operating environment upon
which the TIRS Software will run: a Unix server running Informix IDS (database server)
version 9.x. or higher and Windows NT, 2000, or XP-based PC clients running Informix
Connect version 9.x or higher. Licensee shall furnish and make

TIRS/AWAC License Agreement

Page 2 of 15

 

 

	 	 	 	available its equipment and facilities as required for the installation, operation or
maintenance of the TIRS Software, and take such action as may be necessary to ensure
that the operating environment specified in this Section 3.2 is operable as of the
agreed date of installation. Licensee is also responsible for obtaining all
appropriate licenses, including all necessary licenses for the Informix software
products, relating to the operating environment.
	 
	 	3.3.	 	THI will use commercially reasonable efforts to assist Licensee to install and
configure the TIRS Software, and, if necessary, the Informix server software product.
	 
	 	3.4.	 	Within thirty (30) days after the Effective Date, THI shall enter into a source
code escrow agreement (the “Source Code Escrow Agreement”) with a reputable escrow
agent (the “Source Code Escrow Agent”) and make Licensee a beneficiary to the Source
Code Escrow Agreement. In the event that the Source Code Escrow Agreement expires or
is terminated, THI shall promptly notify Licensee thereof and THI agrees to immediately
enter into a new escrow agreement on the same terms with another escrow agent, which
shall be mutually agreed to by the parties. Upon making Licensee a beneficiary to
the Source Code Escrow Agreement, THI will deposit with the Escrow Agent a documented
copy of the source code form of the TIRS Software, a listing thereof, commentary,
developer notes, libraries, tools, utilities and other related materials in a source
code escrow account. If THI corrects any defects in the TIRS Software, or provides any
new corrected releases, new versions, modifications or enhancements to the TIRS
Software, THI shall simultaneously furnish the Escrow Agent with a corrected or revised
copy of the source code form of the TIRS Software (the revised copies and the original
copies, collectively, the “Escrowed Materials”). THI shall obtain the right in the
Source Code Escrow Agreement for Licensee, as a beneficiary under the Source Code
Escrow Agreement, to audit THI’s escrow account with the Source Code Escrow Agent in
order to confirm that THI has complied with its obligations to comply its obligations
to deposit all of the materials and documents required pursuant to this Section.
	 
	 	3.5.	 	The Escrowed Materials will be released from escrow if THI becomes the subject
of any voluntary or involuntary proceeding in bankruptcy, liquidation, dissolution,
receivership, attachment or composition, or makes a general assignment for the benefit
of creditors. Without any limitation of the rights granted to Licensee in Section 1 of
this Agreement, THI hereby grants to Licensee, under any and all of THI’s intellectual
property rights (both now and in the future), a perpetual, irrevocable, non-exclusive
right and license to access, use, display and modify the Escrowed Materials (“Source
Code License Rights”) solely for the purpose of supporting the TIRS Software; provided,
that although the foregoing grant is effective as of the Effective Date, Licensee may
exercise any such Source Code

TIRS/AWAC License Agreement

Page 3 of 15

 

 

	 	 	 	License Rights only upon the occurrence of the release of the Escrowed Materials to
Licensee pursuant to this Section.
	 
	 	3.6	 	All rights and licenses granted under or pursuant to this Agreement by THI are,
and shall otherwise be deemed to be, for purposes of Section 365(n) of the United
States Bankruptcy Code (the “Code”), licenses to rights to “Intellectual Property” as
defined under the Code. The parties agree that Licensee, as licensee of such rights
under this Agreement shall retain and may fully exercise all of its rights and
elections under the Code. The parties further agree that, in the event of the
commencement of any bankruptcy proceeding by or against either party under the Code,
either party shall be entitled to retain all of its rights under this Agreement.
	 
	 	4.	 	TERM AND TERMINATION
	 
	 	4.1.	 	Term of License. Subject to earlier termination as described in
Section 4.2, and unless otherwise agreed in writing by the parties, this Agreement
shall commence on the Initial Term Start Date set forth on the Cover Page, and shall
continue until the Initial Term End Date set forth on the Cover Page (such period being
referred to as the “Initial Term”). Thereafter, this Agreement shall automatically
renew for successive renewal terms of one (1) year each (“Renewal Terms”), unless
either party notifies the other of its desire not to renew at least ninety (90) days
prior to the expiration of the Initial Term or Renewal Term then in effect.
	 
	 	4.2.	 	Termination of License. This Agreement may be terminated prior to the
expiration of the Initial Term or any subsequent Renewal Term as follows:

	 	a.	 	Either party may terminate this Agreement at any
time upon thirty (30) days prior written notice to the other party if the
other party has breached any of its material obligations and has not
cured such default prior to the expiration of the thirty (30) day period.
In addition, either party will have the right to terminate this
Agreement upon thirty (30) days prior written notice if a Force Majeure
Condition (as defined in Section 12.4) has prevented performance by the
other party for more than one hundred twenty (120) consecutive days.
	 
	 	b.	 	Either party may terminate this Agreement at any
time upon thirty (30) days prior written notice to the other party if a
court or other governmental entity issues an order that requires THI to
materially alter the TIRS Software or otherwise materially restricts or
limits THI’s ability to deliver or license the TIRS Software as it exists
as of the Effective Date of this Agreement.

TIRS/AWAC License Agreement

Page 4 of 15

 

 

	 	c.	 	THI may terminate this Agreement at any time upon
written notice to Licensee if any assignment is made by Licensee for the
benefit of creditors, or if a receiver, trustee in bankruptcy or similar
officer shall be appointed to take charge of any or all of Licensee’s
property, or if Licensee files a voluntary petition under federal
bankruptcy laws or similar state or foreign statutes or such a petition
is filed against Licensee and is not dismissed within forty-five (45)
days, or if Licensee liquidates or otherwise winds up its business for
any reason.
	 
	 	d.	 	THI may terminate this Agreement if a third party
acquires Licensee, if Licensee merges with a third party, or if any
entity that did not have a majority ownership interest in Licensee as of
the Effective Date subsequently acquires a majority ownership interest in
Licensee, by providing twelve months written notice to Licensee of such
termination, following THI’s actual knowledge of such change in control
of Licensee.

	 	4.3.	 	The parties agree that unauthorized use, disclosure or transfer of the TIRS
Software may substantially diminish the value of such materials and irreparably harm
THI, and therefore further agree that THI shall be entitled to injunctive and/or other
equitable relief, in addition to other remedies afforded by law, to prevent or restrain
a breach of this Agreement.
	 
	 	4.4.	 	Upon any expiration or termination of this Agreement, Licensee shall
immediately return to THI (or, at THI’s option, destroy and certify in writing to THI
that it has destroyed) the original and all copies of the TIRS Software, including
compilations, translations, partial copies, archival copies, upgrades, updates, release
notes and training materials relating to the TIRS Software, and all security devices,
if any, and media on which original copies of the TIRS Software are contained. If
Licensee fails to return or destroy any such materials, it shall continue to pay all
License Fees until such return or destruction, notwithstanding the termination of the
License.
	 
	 	5.	 	LICENSE FEES
	 
	 	5.1.	 	Initial License Term. The Licensee shall pay THI the License Fee
according to the schedule set forth on the Cover Page. Licensee’s failure to make such
payments according to this schedule shall be considered a material breach of its
obligations under this Agreement.
	 
	 	5.2.	 	Renewal Terms. THI reserves the right to modify these terms and
conditions by providing notice to Licensee of the new terms and conditions as provided
herein. The terms and conditions for each Renewal Term, except for pricing, shall be
the same as those contained in this Agreement unless Licensee is notified in writing of
the proposed changes 90 days prior to the beginning of the pertinent Renewal Term. THI
shall also notify Licensee 90 days prior to the beginning of the renewal term of

TIRS/AWAC License Agreement

Page 5 of 15

 

 

	 	 	 	the pricing for the Renewal Term. No later than sixty (60) days prior to the
beginning of each Renewal Term, Licensee shall notify THI of its intent to renew or
terminate this Agreement. If Licensee elects to renew, Licensee shall pay THI the
entire renewal License Fee concurrently with its notice of election to renew.
Licensee shall be obligated to pay the entire renewal License Fee for any Renewal
Term that has commenced, regardless of the level of Licensee’s actual or expected use
of the TIRS Software during such Renewal Term.
	 
	 	5.3.	 	Payments Net. All payments, fees and other charges payable by Licensee
to THI under this Agreement are net of all freight charges, taxes (including sales,
value-added or use taxes), tariffs and other governmental charges, all of which shall
be paid by Licensee. Licensee acknowledges that it is responsible for such
governmental charges and that if THI is required to pay any such charges based on the
TIRS Software, services or other items provided to Licensee, then such charges, but not
any penalties or interest, shall be billed to and paid by Licensee. Licensee shall
obtain and provide to THI any certificate of exemption or similar document required to
exempt any transaction under this Agreement from sales tax, use tax or other tax
liability.
	 
	 	5.4.	 	Payment Terms. All payments shall be made in U.S. Dollars.
	 
	 	5.5.	 	Effect of Early Termination. In the event that this License Agreement
is terminated pursuant to Section 4.2, THI shall refund to Licensee the applicable
License Fee, as pro-rated over the Initial Term or any applicable subsequent Renewal
Term.
	 
	 	6.	 	PROPRIETARY INFORMATION
	 
	 	6.1.	 	THI shall have sole and exclusive ownership of all right, title and interest in
and to the TIRS Software and all modifications, updates, upgrades and enhancements
thereto (including ownership of all trade secrets, copyrights, trademarks, service
marks, and patentable inventions pertaining thereto), subject only to the rights and
privileges expressly granted to you herein by THI. This Agreement does not provide
Licensee with title or ownership of the TIRS Software, but only a right of limited use
as provided herein. Licensee shall keep the licensed TIRS Software free and clear of
all claims, liens, and encumbrances.
	 
	 	6.2.	 	This Agreement shall not be construed as an encumbrance or limitation of any
kind on THI’s right to develop or modify the TIRS Software in any way. In addition,
this Agreement shall not be construed as an encumbrance or limitation of any kind on
THI’s right to transfer ownership of the TIRS Software or to license or sublicense the
TIRS Software to any party, provided that the rights granted to Licensee in this
Agreement shall remain in effect for the Initial Term and any subsequent Renewal Term.

TIRS/AWAC License Agreement

Page 6 of 15

 

 

	 	6.3.	 	Licensee understands and agrees that THI considers the TIRS Software, Third
Party Software (as defined in Section 8.1), associated documentation, and all
modifications, updates, upgrades and enhancements thereto (including ownership of all
trade secrets, copyrights, trademarks, service marks, and patentable inventions
pertaining thereto this Agreement (collectively “THI Confidential Information”), as
between THI and Licensee, to be the proprietary and confidential information of THI.
Licensee agrees to maintain the THI Confidential Information in confidence and, except
for the right of Licensee to make copies of the TIRS Software for the purposes
authorized in Section 2.1 above, Licensee agrees not to disclose, duplicate or
otherwise reproduce, directly or indirectly, the THI Confidential Information in whole
or in part. Licensee may disclose THI Confidential Information to consultants retained
by Licensee to the extent reasonably necessary solely for such consultants to assist
Licensee in the permitted use of the TIRS Software and provided Licensee obligates such
consultant to protect the confidentiality of the THI Confidential Information as
contained herein.
	 
	 	6.4.	 	Licensee agrees that neither it nor anyone acting on its behalf, including
Licensee’s officers, directors, employees, agents, or any person or party acting at the
request of Licensee, shall disassemble, reverse engineer, or reverse compile the TIRS
Software in whole or in part. Licensee agrees to take reasonable steps to ensure that
no unauthorized persons shall have access to the THI Confidential Information and that
all authorized persons having access to the THI Confidential Information shall refrain
from any such disclosure, duplication or reproduction. Licensee agrees not to remove
any copyright notice or other proprietary markings from the THI Confidential
Information, and any copy thereof made by Licensee for backup purposes shall contain
the same copyright notice and proprietary markings contained on the copy of the TIRS
Software furnished by THI to Licensee hereunder.
	 
	 	6.5.	 	If the THI Confidential Information will be provided or made available to the
U.S. Government, any use, duplication, or disclosure by the U.S. Government of the THI
Confidential Information shall be subject to the restrictions applicable to proprietary
commercial computer software set forth in subparagraph (c)(1)(ii) of the Rights in
Technical Data and Computer Software clause at DFARS 252.227-7013 or subparagraphs
(c)(1) and (2) of the Commercial Computer Software — Restricted Rights clause at 48 CFR
52.227-19, as applicable.
	 
	 	6.6.	 	During its performance of this Agreement, THI may be supplied with or have
access to written, tangible, oral or visual “Licensee Confidential Information,” as
defined below. THI shall maintain the Licensee Confidential Information in confidence,
in a manner no less restrictive than it would use to maintain its own confidential
information (in no case using less than a reasonable duty of care), and use Licensee
Confidential Information solely for the purpose of THI performing its obligations under
this Agreement and shall obligate its employees and permitted subcontractors to make no
other use of such Licensee Confidential Information. THI and its

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	 	 	 	employees and permitted subcontractors shall not disclose such Licensee Confidential
Information to any third party, without Licensee’s express written consent. “Licensee
Confidential Information” shall mean all information concerning Licensee’s business
affairs, property, methods of operation, processing systems or other information, in
tangible, oral or visual information received by THI while on the premises of
Licensee, or otherwise, and which THI personnel are likely to recognize as
information which Licensee considers to be confidential and which Licensee takes
reasonable precautions to protect from unauthorized use or disclosure.
	 
	 	6.7.	 	Each party acknowledges that its failure to comply with the provisions of this
Section 6 may result in irreparable harm to the other for which a remedy at law may be
inadequate, and therefore, in the event of breach or threatened breach by the recipient
of information protected by this Section, the other party shall be entitled to seek
equitable relief in the form of specific performance and/or an injunction for any such
actual or threatened breach, in addition to the exercise of any other remedies at law
and in equity.
	 
	 	6.8.	 	The confidentiality obligations in this Section shall not apply to information
disclosed hereunder which:

	 	a.	 	was previously known to recipient;
	 
	 	b.	 	is or becomes generally available to the public
through no fault of the recipient;
	 
	 	c.	 	is developed by or on behalf of the recipient
independent of any information furnished under this Agreement; or
	 
	 	d.	 	is received by recipient from a third party as a
matter of right.

	 	 	 	Provided, however, if THI, with respect to Licensee Confidential Information, or
Licensee, with respect to THI Confidential Information, is required to disclose such
information by law or by any governmental agency having jurisdiction pursuant to an
order to produce or in the course of a legal proceeding pursuant to a lawful request
for discovery, then, THI or Licensee, as applicable, shall utilize reasonable efforts
to promptly notify the other of the order or request in discovery and reasonably
cooperate with Licensee or THI, as applicable, if the other elects (at its expense)
to seek to limit or avoid such disclosure by any lawful means.
	 
	 	6.9.	 	Licensee agrees that the TIRS Software is the intellectual property of THI.
Licensee agrees not to directly or indirectly, register, apply for registration or
attempt to acquire any legal protection for any of the TIRS Software or any proprietary
rights therein.

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	 	6.10.	 	Licensee agrees to utilize reasonable efforts to notify THI immediately and in
writing of all circumstances surrounding the unauthorized possession or use of the TIRS
Software and associated documentation by any person or entity of which Licensee may
become aware. Licensee agrees to cooperate with THI in any litigation relating to or
arising from such unauthorized possession or use.
	 
	 	6.11.	 	Notwithstanding any other provision of this Agreement, the obligations set
forth in this Section 6 will survive the termination of this Agreement for any reason.
However, the confidentiality obligations set forth in this Section 6 will terminate 5
years after the expiration or termination of this Agreement.
	 
	 	7.	 	WARRANTIES
	 
	 	7.1.	 	THI warrants that for a period of ninety (90) days from the date of
installation, the TIRS Software, when properly used, will operate substantially in
accordance with the specifications contained in its documentation. THI’s entire
liability and Licensee’s exclusive remedy under this warranty shall be that THI will
use reasonable commercial efforts to correct, provide a workaround for, or replace
malfunctions in the TIRS Software, at THI’s cost and expense, provided that written
notice itemizing the malfunctions is given to THI during the warranty period.
	 
	 	7.2.	 	The warranty set forth above shall not apply to the degree that the malfunction
occurs because (a) the affected TIRS Software has not been used in accordance with the
TIRS documentation; (b) the affected TIRS Software has been altered, modified or
converted by Licensee without the prior written approval of THI; and (c) of the
malfunctioning of Licensee’s hardware or software. THI shall not be required to respond
to a warranty claim hereunder to the extent that Licensee has not timely paid amounts
due and owing to THI under this Agreement. THI does not warrant that TIRS Software will
operate uninterrupted or error free, that the functions contained in the TIRS Software
will operate in combination with other software or hardware selected by Licensee, or
that the TIRS Software will meet Licensee’s requirements.
	 
	 	7.3.	 	THI does not warrant that TIRS Software will operate in the event of any Force
Majeure Condition (as defined in Section 12.4). Licensee is solely responsible for
establishing its own disaster recovery plan.
	 
	 	7.4.	 	EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH ABOVE, THE TIRS
SOFTWARE (INCLUDING ANY MODULES OR COMPONENTS LICENSED BY THI AND PROVIDED WITH THE
TIRS SOFTWARE) IS BEING PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND. THE PARTIES
DISCLAIM ANY OTHER REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF

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	 	 	 	TITLE OR NON-INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
ACCURACY, INTEGRATION, VALIDITY, EXCLUSIVITY, MERCHANTABILITY, NON-INTERFERENCE WITH
ENJOYMENT, FITNESS FOR ANY PARTICULAR PURPOSE, AND ALL WARRANTIES IMPLIED FROM ANY
COURSE OF DEALING OR USAGE OF TRADE.
	 
	 	7.5.	 	THE WARRANTIES SET FORTH IN THIS SECTION 7 ARE EXPRESSLY SUBJECT TO THE
LIMITATIONS OF SECTION 11 (LIMITATION OF LIABILITY).
	 
	 	8.	 	THIRD PARTY SOFTWARE
	 
	 	8.1.	 	The TIRS Software incorporates program elements and/or databases licensed from
Actuate Corporation (“Actuate”) and Saperion Incorporated (“Saperion”). such software
is referred to as “Third Party Software”, title to which is retained by Actuate and
Saperion.
	 
	 	8.2.	 	THIRD PARTY SOFTWARE, PROGRAM ELEMENTS AND DATA ARE PROVIDED “AS IS.” THI DOES
NOT WARRANT, GUARANTEE OR MAKE ANY REPRESENTATIONS REGARDING THE USE, OR RESULTS OF
USE, OF THE THIRD PARTY SOFTWARE, INCLUDING PROGRAM ELEMENTS AND/OR DATABASES IN THE
THIRD PARTY SOFTWARE, OR RELATED MATERIALS IN TERMS OF CORRECTNESS, ACCURACY,
RELIABILITY, CURRENTNESS OR OTHERWISE. THI ASSUMES NO RISK AS TO PERFORMANCE AND
RESULTS OF THE THIRD PARTY SOFTWARE.
	 
	 	8.3.	 	THI SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL OR INCIDENTAL
DAMAGES (INCLUDING DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, LOSS OF
BUSINESS INFORMATION AND THE LIKE) ARISING OUT OF THE USE, MISUSE, OR INABILITY TO USE
THE THIRD PARTY SOFTWARE, PROGRAM ELEMENTS OR DATA SUPPLIED BY ACTUATE OR SAPERION EVEN
IF THI HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
	 
	 	9.	 	SOFTWARE SUPPORT
	 
	 	9.1.	 	Support and Upgrades to the TIRS Software. Provided Licensee has paid
the License Fees set forth in the Cover Page during the Initial Term and any subsequent
Renewal Term, Licensee shall receive (i) reasonable telephone technical consultation
during THI’s normal business hours with THI’s technical support staff on the use of the
TIRS Software, and (ii) all upgrades and updates to the TIRS Software that are
generally made available to licensees of the TIRS Software.

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	 	 	 	Licensee agrees to install new versions and releases of the TIRS Software. Licensee
further agrees and acknowledges that THI will maintain and support old versions of
TIRS for a period of one (1) year from the date that Licensee is notified that a new
version or release is available for installation. THI will provide best effort in
responding to Licensee requests.
	 
	 	9.2.	 	Training. During the Initial Term and any Renewal Term of this
Agreement, additional training can be purchased from THI at THI’s then-prevailing rates
for training. For purposes of example, as of the Effective Date, THI’s rate for
training is as follows: $1500.00 per training day (6 hours) plus the addition of all
travel related expenses including airfare, meals, and lodging.
	 
	 	9.3.	 	Access to Premises. Licensee shall grant to THI such access to
Licensee’s equipment and facilities, and to the TIRS Software installed on Licensee’s
equipment, as may be necessary or appropriate for THI to perform its obligations under
this Agreement.
	 
	 	9.4.	 	Licensee Requested Customizations. Licensee may request a custom
modification or addition to the TIRS Software exhibiting functionality that is beyond
the scope of the TIRS Software as of the date of such request (“Customization”). THI,
in its sole discretion, may agree to implement such Customization on terms and
conditions that are mutually acceptable to THI and Licensee, and unless otherwise
agreed between THI and Licensee, THI shall own the Customization and may make it
available to any other party as THI may determine in its sole discretion.
	 
	 	9.5.	 	Development of TIRS Software. THI agrees that Licensee may submit
recommendations to the TIRS roadmap committee, which is the decision-making body that
determines the future enhancements and releases of the TIRS Software.
	 
	 	10.	 	THI INDEMNIFICATION
	 
	 	10.1.	 	THI shall indemnify, defend, and hold Licensee and its officers, directors
harmless from any action against Licensee to the extent that it is based on an
allegation that the TIRS software and Third Party Software licensed hereunder has
infringed an intellectual property right or trade secret, and pay those damages or
costs related to the settlement of such action or finally awarded against Licensee in
such action, including but not limited to attorneys’ fees, provided that licensee (i)
promptly notifies THI of any such action, (ii) gives THI full authority, information
and assistance to defend such claim and (iii) gives THI sole control of the defense of
such claim and all negotiations for the compromise or settlement thereof.
	 
	 	10.2.	 	THI shall have no liability hereunder with respect to any claim based upon (a)
TIRS Software of the Third Party Software that has been materially modified by anyone
other than THI; (b) use of other than the then-current release of the TIRS Software

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	 	 	 	or the Third Party Software, if infringement could have been avoided by use of the
then-current release and such current release has been made available to Licensee;
(c) use of the TIRS Software or the Third Party Software in conjunction with Licensee
data where use with such data gave rise to the infringement claim; (d) use of any
software in a manner inconsistent with its documentation, and/or (e) use of any TIRS
Software or Third Party Software which use materially breaches this Agreement. In
addition, THI shall have no indemnity obligation for claims of infringement resulting
from any combination, operation or use of the TIRS Software or the Third Party
Software, or any components thereof, with any software or hardware not supplied by
THI.
	 
	 	10.3.	 	If THI determines that the TIRS Software or the Third Party Software is or is
likely to be the subject of a claim of infringement, THI shall have the right (a) to
replace Licensee’s copy of the TIRS Software or Third Party Software with
non-infringing software; (b) to modify such software so as to cause such software to be
free of infringement; (c) to procure, at cost to Licensee, the right to continue to use
such software; or (d) to terminate the license to use the TIRS Software or Third Party
Software and associated documentation, and refund to Licensee the applicable Licensee
Fee (pro-rated over the License Term).
	 
	 	10.4.	 	Maximum Intellectual Property Indemnification. The maximum indemnity
of THI to the Licensee for any and all damages, liabilities, costs and expenses
(including reasonable attorney’s fees) covered by this Section 10, for all claims made
under this Section 10 in the aggregate, shall be limited to the amount of licensee fees
paid by Licensee to THI over the course of the twelve (12) months preceding the
notification of THI by Licensee of a claim for indemnity under Section 10.1.
	 
	 	10.5.	 	THE PROVISIONS OF THIS SECTION 10 STATE THE EXCLUSIVE LIABILITY OF THI AND THE
EXCLUSIVE REMEDY OF LICENSEE WITH RESPECT TO ANY CLAIM OF INTELLECTUAL PROPERTY OR
TRADE SECRET INFRINGEMENT BY THE SOFTWARE OR ANY PART THEREOF, AND ARE IN LIEU OF ALL
OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTY OF
NON-INFRINGEMENT, AND INDEMNITIES WITH RESPECT THERETO.
	 
	 	11.	 	LIMITATION OF LIABILITY
	 
	 	11.1.	 	Licensee’s sole remedies for THI’s liability regarding the performance of
training, consulting, software support, or other services, if any, provided in
conjunction with the software shall be limited to the re-performance of any defective
service provided by THI, or if re-performance is not available or practical, then a
pro-rata refund of the payments allocable to the defective service.

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	 	11.2.	 	Except as expressly specified in this license agreement, neither THI nor any
third party from whom THI receives marketing or licensing rights (“Tech Partner”) shall
be liable for any loss or damage that may arise in connection with Licensee’s use of
the software. Licensee acknowledges that data conversion, including data input to the
TIRS Software product, is subject to human and machine errors, omissions, delays and
losses, including inadvertent loss of data or damage to media that may give rise to
loss or damage. THI shall not be liable for any such errors, omissions, delays, or
losses. Licensee is responsible for adopting reasonable measures to limit the impact
of such problems, including backing up data, and adopting procedures to ensure the
accuracy of input data; examining and confirming results prior to use, and adopting
procedures to identify and correct errors and omissions, replace lost or damaged media,
and reconstruct data. Licensee is also responsible for complying with all local,
state, and federal laws pertaining to the use and disclosure of any data.
	 
	 	11.3.	 	IN NO EVENT SHALL THI OR ITS TECH PARTNERS BE LIABLE FOR ANY INDIRECT,
SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, EVEN IF THI HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF
ANY LIMITED REMEDY OF ANY KIND, EXCEPT WITH RESPECT TO THE DEFENSE OF INFRINGEMENT
CLAIMS UNDER SECTION 10, ABOVE, IN NO EVENT SHALL LICENSEE BE ENTITLED TO ANY MONETARY
DAMAGES AGAINST THI OR ITS TECH PARTNERS IN EXCESS OF THE LICENSE FEES PAID TO THI BY
LICENSEE UNDER THIS AGREEMENT FOR THE YEAR IN WHICH THE CAUSE AROSE.
	 
	 	12.	 	GENERAL
	 
	 	12.1.	 	No Waiver. The failure of either party to exercise any right granted
herein, or to require the performance by the other party hereto of any provisions of
this Agreement or the waiver by either party of any breach of this Agreement, will not
prevent a subsequent exercise or enforcement of such provisions or be deemed a waiver
of any subsequent breach of the same or any other provisions of this Agreement.
	 
	 	12.2.	 	Assignment. Licensee may not assign this Agreement or any license
granted hereunder whether by operation of law, change of control, or in any other
manner, without the prior written consent of THI.
	 
	 	12.3.	 	Benefit. Subject to provisions hereof restricting assignment, this
Agreement shall be binding upon and shall inure to the benefit of the parties hereto
and their respective successors and assigns.
	 
	 	12.4.	 	Force Majeure. If the performance of this Agreement or any obligation
hereunder, except for the making of payments hereunder, is prevented, restricted or
interfered

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	 	 	 	with by reason of fire, flood, earthquake, explosion or other casualty or accident,
strikes or labor disputes affecting third-party vendors, inability to procure or
obtain delivery of parts, supplies or power, war or other violence, any law, order,
proclamation, regulation, ordinance, demand or requirements of any governmental
agency, electrical power surges or outages or any act or condition whatsoever beyond
the reasonable control of the affected party (“Force Majeure Condition”), the party
so affected shall be excused from delays in performing or from its failure to perform
hereunder, provided that such party takes reasonable steps to avoid or remove such
cause of nonperformance and will resume performance hereunder with dispatch whenever
such causes are removed.
	 
	 	12.5.	 	Export. Licensee shall not export, re-export or transfer, whether
directly or indirectly, the TIRS Software or any system containing the TIRS Software
outside the United States of America without first complying with the applicable export
laws of the United States of America and the import laws of the country in which the
TIRS Software is to be used.
	 
	 	12.6.	 	Priority. Inconsistencies between the various documents that comprise
this Agreement shall be resolved in the following order of precedence, lower numbered
item prevailing: (1) Cover Page(s), (2) Terms and Conditions, and (3) Exhibits and
Schedules (if any).
	 
	 	12.7.	 	Severability. If any provision of this Agreement is determined by a
court of competent jurisdiction to be or becomes unenforceable or illegal, such
provision shall be deemed eliminated and the remainder of this Agreement shall remain
in effect in accordance with its terms as modified by such deletion.
	 
	 	12.8.	 	Modifications in Writing. Any modification or amendment of any
provision of this Agreement must be in writing and bear the signature of the duly
authorized representative of each party.
	 
	 	12.9.	 	Venue. This Agreement is made and will be governed by and construed
in accordance with the laws of the State of New York, without giving effect to its
conflicts-of-laws provisions.
	 
	 	12.10.	 	Prevailing Party. In the event a dispute arising under this Agreement
results in litigation, the non-prevailing party shall pay the court costs and
reasonable attorneys’ fees of the prevailing party.
	 
	 	12.11.	 	Press Release. Licensee agrees that THI, upon the execution of this
Agreement, may issue a press release, subject to Licensee’s reasonable and prompt
review, indicating that Licensee has chosen to use the TIRS Software.
	 
	 	12.12.	 	Integration. This Agreement sets forth the entire agreement and
understandings between the parties hereto with respect to the subject matter hereof.
This Agreement

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	 	 	 	merges all previous discussions and negotiations between the parties and supersedes
and replaces any other agreement that may have existed between THI and Licensee with
respect to the subject matter hereof.
	 
	 	12.13.	 	Survival. The provisions of Sections 3.5, 4.3, 4.4, 6, 7, 8, 11 and 12 shall
survive the termination of this Agreement.

The parties hereby acknowledge that they have read, understand, and accept this Agreement and
all Exhibits and Addenda hereto.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TRANSATLANTIC HOLDINGS, INC.	 	 	 	ALLIED WORLD ASSURANCE COMPANY, LTD	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ George Di Martino	 	 	 	By:	 	/s/ Michael Fullen	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	George Di Martino
	 	 	 	 	 	Name:
	 	Michael Fullen	 	 
	 

	 	Title:
	 	SVP& CIO
	 	 	 	 	 	Title:
	 	Implementation Manager	 	 
	 

	 	Date:
	 	January 31, 2007
	 	 	 	 	 	Date:
	 	February 16, 2007	 	 

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