Document:

Exhibit 10.11

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY
OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

Virtusa
Corporation

 

 MASTER SERVICES AGREEMENT

 

THIS MASTER SERVICES
AGREEMENT (the “Agreement”) is made as of February, 2004 (the “Effective Date”),
by and between Virtusa Corporation, a Delaware corporation with offices at 2000
West Park Drive, Westborough, MA 01581 (“Virtusa”) and Metavante Corporation, a
Wisconsin corporation with its primary place of business at   4900
West Brown Deer Road, Brown Deer WI 53223 (“Metavante”).

 

Metavante wishes to
engage Virtusa and Virtusa wishes to provide to Metavante the Services (as
defined below) and Deliverables (as defined below) as specified in the Work
Order(s) (each, a “Work Order”) attached hereto as Exhibit A subject
to the terms and conditions of this Agreement. 
Capitalized terms used in this Agreement shall have the meaning set
forth in Exhibit B hereto.

 

In consideration of the
mutual promises set forth herein, Virtusa and Metavante hereby agree as
follows:

 

1.                                       SCOPE OF SERVICES

 

1.1                                 Services and Deliverables. Virtusa agrees, subject to the terms
and conditions of this Agreement, to provide Metavante with the Services and
Deliverables as specified in any Work Order executed by both parties.  In the event of any conflict between the
terms of this Agreement and the terms of a WORK ORDER, the terms of this
Agreement shall control, unless otherwise specified in the WORK ORDER under the
heading “Special Terms.”  Deliverables
shall be subject to acceptance testing if, and as, set forth in the applicable
Work Order.

 

1.2                                 Change In Work Order. Virtusa agrees that Metavante, under
certain circumstances, may elect to (i) amend, modify or change the
Services and/or Deliverables specified in the Work Order or (ii) change
the way such Services are billed pursuant to the Work Order (i.e. Retainer,
Time and Material, or Fixed Price basis) subject to compliance with the
following procedures:

 

(i) Submission
of Request.  Metavante shall submit
all such requests in writing to Virtusa (hereinafter “Request”).

 

(ii) Virtusa
Response.  Virtusa will evaluate each
Request within ten (10) business days following Virtusa’s receipt of the
Request. If Virtusa determines in its best business judgment that it cannot
accept the Request, Virtusa will provide a written response to Metavante within
ten (10) business days of such determination.  If Metavante’s Request is acceptable, Virtusa
will provide Metavante a written proposal (“Proposal”) in the form of either an
addendum to the related Work Order and/or a new Work Order, as appropriate. The
Proposal will include, but not be limited to, a statement of the availability
of Virtusa’s personnel and resources and the cost and schedule impact, if any.
If Metavante elects to authorize Virtusa’s Proposal, Metavante will, as soon as
possible, 

 

1

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS. 

 

but
not later than ten (10) business days after receipt of the Proposal,
return a duly signed copy of the Proposal to Virtusa.

 

(iii) Performance.  Upon receipt of the signed original unaltered
Proposal, Virtusa will commence performance in accordance with such Proposal,
which will be deemed to be an addendum to the related Work Order and/or a new
Work Order, as the case may be.

 

1.3  Service Locations.

 

(i)  Service
Locations.  The Services shall be
provided to Metavante (1) from the Metavante Service Locations, (2) from
the Virtusa Service Locations and (3) from any other location for which
Virtusa has received Metavante’s written approval, to be given in Metavante’s
sole discretion (collectively, the “Service Locations”).  Virtusa and Virtusa Agents may not provide or
market services to a third party from a Metavante Service Location without
Metavante’s consent.

 

(ii)  Safety
and Security Procedures.  Virtusa shall
maintain and enforce at the Virtusa Service Locations safety and security
procedures that are at least equal to the most stringent of the following:  (1) industry standards for locations
similar to the Virtusa Service Locations; (2) the procedures in effect at
other Virtusa Service Locations; and (3) any higher standard otherwise
agreed upon in writing by the Parties.

 

(iii)  Data
Security.  Virtusa shall establish and
maintain safeguards against the destruction, loss or alteration of Metavante
Data in the possession of Virtusa on the terms set forth in the Virtusa
Information Systems Security Policy Manual Version 1.0 (the “Data Security
Policy”) and previously provided to Metavante. 
In the event Virtusa intends to implement a material modification or
change to the Data Security Policy, Virtusa shall notify Metavante, provided
that Virtusa shall not modify or change the Data Security Policy in a manner
that would have a material adverse affect on the security or protection of
Metavante Data.  In the event Virtusa or
Virtusa Agents discovers or is notified of a breach or potential breach of
security relating to Metavante Data, Virtusa shall immediately (1) notify
the Metavante Contract Manager of such breach or potential breach and (2) if
the applicable Metavante Data was in the possession of Virtusa or Virtusa
Agents at the time of such breach or potential breach, Virtusa shall (a) investigate
and remediate the effects of the breach or potential breach and (b) provide
Metavante with assurance satisfactory to Metavante that such breach or
potential breach will not recur.

 

(iv) 
Security Relating to Competitors.  In the
event that (1) Virtusa intends to provide the Services from a Service
Location (a) that Virtusa shares with a third party or third parties
(other than Virtusa Agents providing Services under this Agreement) or (b) from
which Virtusa provides services to any competitor of Metavante or (2) any
part of the business of Virtusa is now or in the future competitive with
Metavante’s business, then, prior to providing any of the Services from such a
Service Location, Virtusa shall use all reasonable commercial efforts to restrict
access in any such shared environment to Metavante’s Confidential Information
by taking such actions as are required, including without limitation, enforcing
the Data Security Policy, so that Virtusa’s employees or Virtusa Agents
providing services to such competitive business are restricted from having access
to Metavante’s Confidential Information.

 

2

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION
PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

1.4  Audits.

 

(i)            Annual Third Party Audit.  Virtusa shall provide Metavante annually with
a vulnerability assessment with respect to the Virtusa Service Locations
substantially in the form of Virtusa’s Report on Information System Review
dated May 2003 and previously provided to Metavante.

 

(ii)           Upon at least 10 business days
written notice from Metavante, Virtusa and Virtusa Agents shall provide
Metavante, Metavante Agents (all of whom shall be caused by Metavante to be
bound by a confidentiality agreement on terms no less restrictive than the
terms herein), and/or any of Metavante’s regulators with reasonable access to and
any reasonable assistance that they may require with respect to the Service
Locations for the purpose of performing audits or inspections of the Services
and the business of Metavante relating to the Services.  Such audits shall be conducted by Metavante
or Metavante Agents only during regular business hours at any Virtusa office or
location and shall be limited to no more than once per annum.  If any audit by an auditor designated by
Metavante, a Metavante Agent or a regulatory authority results in Virtusa being
notified that Virtusa or Virtusa Agents are not in compliance with any Law or
term of this Agreement, Virtusa shall, and shall cause Virtusa Agents to,
promptly take actions to comply with such Law or term.  Virtusa shall bear the expense of any such
response.

 

1.5   Virtusa
Contract Manager.

 

(i) Virtusa shall appoint an individual (the “Virtusa
Contract Manager”) who, from the date of this Agreement shall serve as the
primary Virtusa representative under this Agreement.  The Virtusa Contract Manager shall (1)have
overall responsibility for managing and coordinating the performance of Virtusa’s
obligations under this Agreement and (2) be authorized to act for and on
behalf of Virtusa with respect to the performance of this Agreement.

 

(ii) If Metavante reasonably determines that the
Virtusa Contract Manager should not continue in that position, then Metavante
may, upon written notice as provided to Virtusa with reasonable grounds as to
why the Virtusa Contract Manager should be replaced, require removal of such
Virtusa Contract Manager.  Virtusa shall,
as soon as reasonably practicable, replace such Virtusa Contract Manager.

 

(iii) Virtusa shall maintain backup procedures
and conduct the replacement procedures for the Virtusa Contract Manager in such
a manner so as to assure an orderly succession for Virtusa Contract Manager who
is replaced.  Upon request, after a
determination that any Virtusa Contract Manager will be replaced, Virtusa shall
make such procedures available to Metavante.

 

1.6                                 Project Staff.  Virtusa shall appoint individuals with
suitable training and skills to perform the Services to the Project Staff.  Virtusa shall provide Metavante with a list
of all Virtusa personnel dedicated full-time to the Project Staff at the end of
every ninety (90)-day period after the Effective Date.  Except as otherwise approved by Metavante (in
its sole discretion), those Virtusa personnel located on Metavante’s premises
may only provide services on such premises which support Metavante’s
operations.  Virtusa shall notify
Metavante as soon 

 

3

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN
FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

as possible after dismissing or reassigning any member
of the Project Staff whose normal work location is at a Metavante Service
Location.

 

1.7 
Subcontractors.

 

(i)  Prior to subcontracting any of the Services,
Virtusa shall notify Metavante of the proposed subcontract and shall obtain
Metavante’s approval of such subcontract. 
Prior to amending, modifying or otherwise supplementing any subcontract
relating to the Services, Virtusa shall notify Metavante of the proposed
amendment, modification or supplement and shall obtain Metavante’s approval
thereof which approval shall not be unreasonably withheld or delayed.

 

(ii)           No
subcontracting shall release Virtusa from its responsibility for its obligations
under this Agreement.  Virtusa shall be
responsible for the work and activities of each of the Virtusa Agents,
including compliance with the terms of this Agreement.  Virtusa shall be responsible for all payments
to its subcontractors.

 

(iii)          Except
as otherwise provided in this Agreement, Virtusa shall promptly pay for all
services, materials, equipment and labor used by Virtusa or its subcontractors
in providing the Services and Virtusa shall keep Metavante’s property and
premises free of all liens and/or competing claims.

 

1.8                                 Conduct of Virtusa Personnel.  While at the Metavante Service Locations,
Virtusa and Virtusa Agents shall (1) comply with the requests, standard rules and
regulations of Metavante regarding safety and health, personal and professional
conduct (including adhering to general safety practices or procedures)
generally applicable to such Metavante Service Locations and (2) otherwise
conduct themselves in a businesslike manner; provided that as a condition to
such compliance, Metavante shall have provided Virtusa with the then current
copy of the applicable policy, rule or regulation.  Virtusa shall cause the Project Staff to
maintain and enforce the confidentiality provisions of this Agreement.  If Metavante notifies Virtusa that a
particular member of the Project Staff is not conducting himself or herself in
accordance with this Section, Virtusa shall promptly (a) investigate the
matter and take appropriate action which may include (i) removing the
applicable person from the Project Staff and providing Metavante with prompt
notice of such removal and (ii) replacing the applicable person with a
similarly qualified individual or (b) take other appropriate disciplinary
action to prevent a recurrence.  In the
event of multiple violations of this Section by a particular member of the
Project Staff, Virtusa shall promptly remove the individual from the Project
Staff.

 

1.9                                 Non-Competition.  Virtusa shall not assign any member of the
Restricted Staff (as defined below) to perform any services for any Competitor
(as defined below) of Metavante which services involve substantially similar or
competing products of the Competitor as those being performed under the
applicable Work Order without Metavante’s prior written consent, which consent shall
not be unreasonably withheld (i) while such member of the Project Staff is
actively engaged under a Work Order herein to which the restriction above
applies and (ii) for a [*********************************** ************************]  is removed from, or ceases to provide
services in connection with such Work Order. For purposes of this Agreement,
Competitor shall be defined as only those companies listed
[**************************], as 

 

4

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN
FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

agreed to by the parties.  For purposes of this Agreement, “Restricted
Staff” shall mean each employee or consultant of Virtusa who (i) is
actively engaged for a period of
[*********************************************************] and (ii) [***]
a [***] of [***********] or below.

 

1.10 Disaster Recovery.

 

(i)  Virtusa shall
have and maintain a professionally developed disaster recovery plan (“DRP”).
Virtusa shall test (and may amend the DRP if Virtusa determines necessary) the
operability of the DRP during every 12-month period that the DRP is fully
operational, and certify to Metavante at least once during every 12-month
period that the DRP is fully operational. 
Virtusa shall implement the DRP upon the occurrence of a disaster.  Virtusa shall use all reasonable commercial
efforts to reinstate the Services within [***] after the occurrence of a
disaster.  In the event of a disaster (as
such term is defined in the DRP), Virtusa
[********************************************************************** ************************************],
unless agreed to by Metavante in writing.

 

(ii)  Force
Majeure.  If and to the extent that a
Party’s performance of any of its obligations (except for payment obligations)
pursuant to this Agreement is prevented, hindered or delayed by fire, flood,
earthquake, elements of nature or acts of God, acts of war, terrorism, riots,
civil disorders, rebellions or revolutions, or any other similar cause beyond
the reasonable control of such Party (each, a “Force Majeure Event”), and such
non-performance, hindrance or delay was not caused by the negligence of such
party, then the non-performing, hindered or delayed Party shall be excused for
such non-performance, hindrance or delay, as applicable, of those obligations
affected by the Force Majeure Event for as long as such Force Majeure Event
continues and such Party continues to use its best efforts to recommence
performance whenever and to whatever extent possible without delay, including
through the use of alternate sources, workaround plans or other means.  The Party whose performance is prevented,
hindered or delayed by a Force Majeure Event shall immediately notify the other
Party of the occurrence of the Force Majeure Event and describe in reasonable
detail the nature of the Force Majeure Event. 
The occurrence of a Force Majeure Event does not excuse, limit or
otherwise affect Virtusa’s obligation to provide either normal recovery
procedures or any other disaster recovery services described in Section 1.10.

 

(iii)  Alternate
Source.  If the Force Majeure Event continues
to materially and adversely prevent, hinder or delay performance of the
Services for more than [********************** *****], then Metavante may
terminate this Agreement, in whole or in part, as of a date specified by
Metavante in a termination notice to Virtusa.

 

(iv)  No Payment for
Unperformed Services.  Except as provided
in Section 1.10(iii), nothing in this Article shall limit Metavante’s
obligation to pay any fees; provided, however, that if Virtusa fails to provide
the Services in accordance with this Agreement due to the occurrence of a Force
Majeure Event, the Fees shall be adjusted in a manner such that Metavante is
not responsible for the payment of any Fees for Services that Virtusa fails to
provide during the Force Majeure period.

 

5

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS.

 

(v)  Allocation of
Resources.  Whenever a Force Majeure
Event or a disaster causes Virtusa to allocate limited resources between or
among Virtusa’s customers, Virtusa shall provide Metavante
[******************************** ***********]

 

1.11 
Termination Services

 

(i)  At the
termination of all services under this Agreement and to facilitate an orderly
transfer of all responsibility for the co-sourced functions to Metavante, or
its designee, Virtusa shall perform Termination Services in accordance with a
jointly developed plan for such Termination Services (“Termination Services
Plan”) in accordance with the terms set forth herein.

 

(ii)  Virtusa shall
provide Termination Services to Metavante at Metavante’s request in the event of
expiration or termination of this Agreement, subject to the terms herein.  Upon Metavante’s prior written notice to
Virtusa of (1) Metavante’s decision to not renew the terms of this
Agreement and for the Agreement to expire on the terms set forth herein and (2) Metavante’s
request for Termination Services, Metavante and Virtusa shall develop and
implement a Termination Services Plan [***] to the expiration date of the
applicable Work Order.  If Virtusa or
Metavante terminates this Agreement prior to its scheduled expiration pursuant
to the terms herein, the parties shall develop and implement such Termination
Services Plan, commencing on the Termination Date.  The Termination Services Plan shall include
the Termination Services to be performed, the respective obligations of the
parties, the Metavante and Virtusa resources who will participate in the plan,
and inventory of the responsibilities to be transitioned, target completion
dates, estimated effort, and exit criteria by which Metavante will confirm that
the Termination Services have been completed.

 

(iii)  Termination
Services

 

Termination
services shall mean those activities required to transfer responsibility to
Metavante for those tasks and activities that were being performed by Virtusa
under this Agreement (“Termination Services”). 
Termination Services shall include, but shall not be limited to, the
following types of services:

 

·                                          Reverse Knowledge Transfer:  Virtusa resources will work with the
Metavante resources to transition their knowledge of Metavante projects,
activities and applications to a Metavante designated resource.  The reverse knowledge transfer will be
performed based on the Termination Services Plan.  For the avoidance of doubt, all such services
will be limited to knowledge transfer only and all development work and coding
of the Virtusa resources shall not be included in any Termination Services.

 

·                                          Transition of Deliverables:  Virtusa resources will transition
responsibility for completed and in-process deliverables to a Metavante
designated resource.  If a Metavante
resource cannot be identified for this transition, Virtusa resources will
document the deliverables in accordance with jointly agreed deliverable
transition guidelines.  The transition
will be performed based on the Termination Services Plan.

 

6

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS.

 

·              Communications:  Virtusa and Metavante shall together keep the
[***] and [******] connections between Metavante and Virtusa work locations
operable for the Termination Services Period (defined below).

 

(iv) Termination
Services Period

 

Virtusa
shall promptly commence providing Termination Services upon (a) non-terminating
party’s receipt of the terminating party’s valid notice of termination under
this Agreement and (b) Virtusa’s receipt of Metavante’s written request
for Termination Services.  Except as
otherwise expressly set forth in the Termination Services Plan, Virtusa shall
perform Termination Services for a period not to exceed [*****************] (“Termination
Services Period”) commencing on the termination date, unless Metavante directs
Virtusa to discontinue providing the Termination Services prior to the end of
such Termination Services Period.  Unless
otherwise agreed in writing by the parties, the parties’ rights and obligations
regarding Termination Services shall survive the expiration or termination of
this Agreement.

 

(v) Charges
for Termination Services

 

Metavante
shall pay Virtusa for Termination Services on a time and materials basis for
the Virtusa resources that perform these Termination Services, at a rate
mutually agreed upon by the parties [************************* **************************************************
********************] provided that,
if Metavante terminates this Agreement pursuant to a material breach by Virtusa
which is not cured within 30 days of written notice by Metavante under this
Agreement, Virtusa shall provide the Termination Services [************* *****]
provided that no more than [*********************] actively engaged on the Work
Order at the time of termination will be required to perform Termination
Services [*************] under the terms herein (except that at a minimum, of
the Project Staff, Virtusa shall make available at least [************] to
assist in the transition, [****************************** *******] and the
[***************] shall be agreed upon by the parties).  Any additional resources or services beyond
the [*****************] Termination Service Period referenced above may be
purchased by Metavante [*******************] at the time of termination.

 

(vi) Termination
Expenses

 

If Virtusa terminates this Agreement pursuant to a
breach by Metavante, Metavante shall [************************** *******************************************]
from early termination of this Agreement or any Work Order under this
Agreement. If Metavante terminates this Agreement pursuant to a material breach
by Virtusa, Metavante [*********** ***************************************************************************************************
***************************************************************************************
************ ************************************] any Work Order under this
Agreement [***************** ***********] by Virtusa, in accordance with the
terms of this Agreement.

 

1.12         [***]

 

7

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS.

 

(i) [*************************************************************************************************
****************************************************************************************************
****************************************************************************************************
****************************************************************************************************
******************************* ************************************************]

 

(ii) [*************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*****************************************************************************************************
*******************************************************************************************]

 

2.                                   PROPRIETARY RIGHTS

 

2.1                                 Metavante Ownership Rights. Virtusa hereby [*************] to
Metavante, all right, title and interest in and to the Deliverables and the
Work Product, including without limitation, all copyrights, moral rights,
patents, trademarks, trade secrets, and any other intellectual property rights
which may be capable of protection under the laws of the United States of
America, India or any other country, subject to only to the rights of Virtusa
in Virtusa Intellectual Property (as defined in Section 2.2 hereof)and/or
any rights of third parties with respect to any third party software delivered
with or embedded in any Deliverable which has been disclosed to, and approved
by, Metavante in advance.  Metavante [********************************]
including worldwide ownership of copyright and patent, in and to the
Deliverables and Work Product and all copies made from them.  Virtusa acknowledges, and shall cause Virtusa
Agents to acknowledge, that Metavante and the successors and permitted assigns
of Metavante shall have the right to obtain and hold in their own name any
intellectual property rights in and to the Deliverables and the Work
Product.  Virtusa agrees to execute, and
shall cause Virtusa Agents to execute any documents or take any other actions
as may reasonably be necessary, or as Metavante may reasonably request, to
perfect Metavante’s ownership of 

 

8

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

any such
Deliverables and Work Product, under the laws of the United States, India, and
every other country.

 

2.2                                 Virtusa Ownership Rights. Notwithstanding the foregoing, Virtusa
currently owns and shall continue to own all right, title and interest
(including without limitation all copyrights, moral rights, patents,
trademarks, trade secrets, mask works and any other intellectual property
related thereto) in and to all techniques, methodologies, objects, modules,
software, or other materials created or obtained by Virtusa prior to performing
any Services under this Agreement (“Pre-existing Virtusa Property”), and any
and all enhancements, modifications and derivative works to Pre-existing
Virtusa Property of general application developed by Virtusa during the term of
this Agreement and any Work Order hereunder (“Virtusa Intellectual Property”),
excluding any Confidential Information (as defined in Section 3.1 hereof)
of Metavante.

 

2.3                                 Virtusa License. Virtusa hereby grants to Metavante an
irrevocable (except as noted in Section 8.4 hereof), perpetual,
non-exclusive, non-transferable, non-assignable, royalty-free, fully paid-up,
world-wide license to use, copy, modify, sublicense, and display any Virtusa
Intellectual Property incorporated into the Deliverables under this Agreement.

 

2.4                                 Metavante License. For the sole purpose of meeting the
requirements and/or obligations of a Work Order, Metavante hereby grants to
Virtusa, for the term of this Agreement and any Work Order hereunder, a
non-exclusive, non-transferable, non-assignable, royalty-free, fully paid-up,
world-wide license to use, copy, modify, display, and create derivative works
from all objects, components, software, or other materials/documentation
furnished by Metavante to Virtusa which pertain to the Services and/or
Deliverables (“Metavante Software”).

 

2.5                                 Metavante Data.

 

(i) Ownership of
Metavante Data.  All Metavante Data is,
or will be, and shall remain the property of Metavante.  Without Metavante’s approval (in its sole
discretion), Metavante Data shall not be, (1) used by Virtusa or Virtusa
Agents other than in connection with providing the Services, (2) disclosed,
sold, assigned, leased or otherwise provided to third parties by Virtusa or
Virtusa Agents or (3) commercially or otherwise exploited by or on behalf
of Virtusa or Virtusa Agents.  Virtusa
hereby irrevocably assigns, transfers and conveys, and shall cause Virtusa
Agents to assign, transfer and convey, to Metavante without further
consideration all of its and their right, title and interest in and to
Metavante Data.  Upon written request by Metavante,
Virtusa shall execute and deliver, and shall cause Virtusa Agents to execute
and deliver, any documents that may be reasonably necessary under any Law to
preserve, or enable Metavante to enforce, its rights with respect to Metavante
Data.

 

(ii) Return of Data.

 

(1)           Upon request by Metavante at any time
during the Term and upon expiration or termination of this Agreement, Virtusa
shall (a) promptly return to Metavante, in the 

 

9

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

format and on the media
requested by Metavante, all or any part of Metavante Data and (b) erase or
destroy all or any part of Metavante Data in Virtusa’s possession, and certify
the same in writing, in each case to the extent so requested by Metavante.

 

(2)           If Virtusa’s compliance with
Metavante’s request pursuant to Section 2.5(iii)(1) will have a
material adverse effect on Virtusa’s ability to perform the Services as set
forth in a Work Order, Virtusa shall notify Metavante of such circumstance
prior to complying with such request and the Parties shall agree to an
appropriate level of relief of Virtusa.

 

2.6                                 Residual Information. Notwithstanding
anything in this Article 2 to the contrary, either Party may freely use
and employ Residual Information, subject to its obligation to protect the other
Party’s Confidential Information pursuant to Article 3 of this Agreement.

 

3.                                       CONFIDENTIALITY

 

3.1                                 Each Party shall use reasonable measures
to protect the other Party’s Confidential Information and shall not disclose
any such Confidential Information to any third party except as permitted hereunder.  Such measures shall be as least as stringent
as the measures used by the receiving Party to protect its own confidential
information, and shall include restricting access to Confidential Information
to the recipient’s employees and consultants on a need-to-know basis, and
requiring written nondisclosure agreements from such employees and consultants
protecting the Confidential Information as required herein.  Each Party shall be responsible for the
misappropriation or other misuse or disclosure of the other Party’s
Confidential Information by its employees or subcontractors in violation of the
terms of this Article 3. A Party may disclose the Confidential Information
of the other Party in response to a lawful order or subpoena from any court or
any body empowered to issue such an order or subpoena or as otherwise required
by law or statute. Each party agrees to notify the other promptly of the
receipt of any such order or subpoena or requirement and to provide the other
with a copy of such order and, to the extent permitted by law, a reasonable
opportunity to obtain a protective order or protect certain parts of the
information as being confidential.

 

3.2                                 The receiving Party is permitted to use
the Confidential Information solely for the purposes of performing its
obligations hereunder.  Notwithstanding
the foregoing, Metavante’s rights to use the Virtusa Intellectual Property
shall be as set forth in Section 2.3 hereof. The disclosing Party makes no
representations or warranties concerning its Confidential Information, provided
that the foregoing shall not apply with respect to any Virtusa Confidential
Information that is incorporated into the Deliverables.

 

3.3                                 Upon request of the disclosing Party, the
receiving Party shall return or destroy all Confidential Information, and all
copies, extracts, portions, notes, summaries and derivatives of the
Confidential Information, in its possession or under its control, provided that
the foregoing shall not apply with respect to any Virtusa Intellectual Property
that is incorporated into the Deliverables.

 

3.4                                 Each Party acknowledges that the other
Party would suffer irreparable harm if the first party breaches the provisions
of this Section 3, and that in the event of such a breach the

 

10

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

other Party shall be entitled to immediate equitable relief (including
without limitation injunction(s) and order(s) for specific
performance), in addition to and without limiting its other remedies at law or
in equity.

 

3.5                                 Unauthorized Acts.  Without limiting either Party’s rights in
respect of a breach of this Article, each Party shall:

(1)                                  promptly notify the other Party of any
unauthorized possession, use or knowledge, or attempt thereof, of the other
Party’s Confidential Information by any person or entity that may become known
to such Party;

(2)                                  promptly furnish to the other Party full
details of the unauthorized possession, use or knowledge, or attempt thereof,
and assist the other Party in investigating or preventing the recurrence of any
unauthorized possession, use or knowledge, or attempt thereof, of Confidential
Information;

(3)                                  cooperate with the other Party in any
litigation and investigation against third parties deemed necessary by the
other Party to protect its proprietary rights; and

(4)                                  promptly use its best efforts to prevent
a recurrence of any such unauthorized possession, use or knowledge, or attempt
thereof, of Confidential Information.

 

Each Party shall
bear the cost it incurs as a result of compliance with this Section.

 

3.6                                 This Article 3 shall survive the
termination of this Agreement.

 

4.                                       FEES AND EXPENSES

 

4.1                                 Virtusa shall send invoices to Metavante
for the fee(s) for Services set forth in the Work Order and any related
expenses [*********].  Metavante shall
pay Virtusa each such invoice in U.S. Dollars within [***] days of receipt of
the applicable invoice.  Each invoice
shall be itemized and contain sufficient detail for Metavante to validate
services and charges included in the invoice. 
Virtusa reserves the right to add a late charge of the [************ *******************************************************************************************
****************************************** *************************************************]

 

4.2                                 All fees are exclusive of all state and
local sales or equivalent taxes now in force or enacted in the future.  If such taxes are applicable, and if paid by
Virtusa, Metavante will be invoiced as a separate line item on the invoice for
those amount(s) that Virtusa may be required to pay.  If a certificate of exemption or similar
document is to be provided by Metavante in order to exempt the sale from tax
liability, Metavante will obtain and provide an acceptable certificate to
Virtusa and the taxing authority.  Each
party shall be responsible for payment of all income or equivalent taxes based
upon that party’s net income.

 

4.3                                 Metavante shall reimburse Virtusa for all
pre-approved and reasonable travel and living expenses incurred by Virtusa in
performing its responsibilities and obligations under this Agreement in
addition to the fee(s) for Services set forth in the Work Order.

 

11

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN
FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION
FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT;
[***] DENOTES OMISSIONS.

 

4.4                                 If Metavante disputes any charge or
amount on any invoice and such dispute cannot be resolved promptly through
good-faith discussions between the parties, Metavante shall pay the amounts due
under this Agreement minus the disputed amount, and the parties shall
diligently proceed to resolve such disputed amount.

 

4.5                                 Attorneys’ Fees and Costs.  If any legal action is commenced in
connection with the enforcement of this Agreement or any instrument or
agreement required under this Agreement, the prevailing party shall be entitled
to costs, attorneys’ fees actually incurred, and necessary disbursements
incurred in connection with such action, as determined by the court.

 

5.                                       INDEMNIFICATION

 

5.1  Indemnity by Metavante.  Metavante shall indemnify Virtusa from, and
defend and hold Virtusa harmless from and against, any Third Party Claim
against Virtusa by any Third Party:

 

(1)                                  that the Metavante Software infringes
upon the proprietary or other rights of any third party (except as may have
been caused by a modification by Virtusa or Virtusa Agents);

 

(2)                                  arising from Metavante’s gross negligence
or willful misconduct;

 

(3)                                  relating to any amounts, including taxes,
interest and penalties, assessed against Virtusa which are the obligation of
Metavante pursuant to Section 4.2;

 

(4)                                  relating to personal injury (including
death) or property loss or damage resulting from negligence or willful
misconduct by Metavante or Metavante Agents;

 

(5)                                  relating to Metavante’s material breach
of Article 3.

 

5.2                                 Indemnity by Virtusa.  Virtusa shall indemnify Metavante from, and
defend and hold Metavante harmless from and against any claim against Metavante
by any Third Party:

 

(1)                                  that the Services, the Deliverables, the
Work Product, any enhancements or modifications to the Metavante Software
performed by Virtusa or Virtusa Agents or any other resources or items provided
to Metavante by Virtusa or Virtusa Agents infringe upon the proprietary or
other rights (excluding any third party software approved by Metavante in
advance to be delivered with or embedded in any Deliverable or Work Product) of
such third party ;

 

(2)                                  arising out of Virtusa’s gross negligence
or willful misconduct or material breach by Virtusa of Section 1.3, Article 2
or Article 3 of this Agreement;

 

(3)                                  relating to any amounts, including taxes,
interest and penalties, assessed against Metavante that are finally determined
by a court or similar tribunal to be the obligation of Virtusa (and not due to
non-payment or late payment of taxes by Metavante properly due);

 

12

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS.

 

(4)                                  relating to property damage or personal
injury resulting from negligence or willful misconduct by Virtusa or Virtusa Agents;

 

(5)                                  relating to claims by any Virtusa
employee or contractor or agent for salary, wages, or payment relating to
services performed under any Work Order or under this Agreement;

 

5.3  Limitations
on Indemnity Obligations for Intellectual Property Infringement

 

5.3.1 
Notwithstanding anything to the contrary, if a third party claim of
infringement under this Section 5 occurs for which Metavante indemnifies
Virtusa under Section 5.1, or if Metavante determines that such a claim is
likely to occur, in addition to Metavante’s indemnification obligations stated
herein, Metavante shall have the right, in its sole discretion, to either: (i) procure
for Virtusa, at Metavante’s expense, the right or license to continue to use
the Metavante Software free of the infringement claim; or (ii) replace or
modify the Metavante Software; or (iii) require Virtusa to cease using the
infringing Metavante Software.

 

5.3.2 
Notwithstanding anything to the contrary, if a third party claim of
infringement under this Section 5 occurs for which Virtusa indemnifies
Metavante under Section 5.2, or if Virtusa determines that such a claim is
likely to occur, Virtusa shall have the right, in its sole discretion, to
either: (i) procure for Metavante, at Virtusa’s expense, the right or
license to continue to use the Deliverable(s), Work Product or Services free of
the infringement claim; or (ii) replace or modify the Deliverable(s), the
Work Product or Services to make them non-infringing.  If neither of these remedies are reasonably
available to Virtusa, Virtusa may require the Metavante to cease using the
infringing Deliverable(s), Work Product or Services and Virtusa will issue
Metavante a pro-rated refund of fees paid under the applicable Work Order for
the infringing Deliverable based on a 5 year amortization schedule, commencing
on the date that the Deliverable was first put in production by Metavante.

 

5.3.3    A
party (the “Indemnifying Party”) shall have no obligation to indemnify the
other party (the “Indemnified Party”) for any infringement claim based upon: (i) any
alteration or modification of any intellectual property not provided or
authorized by the Indemnifying Party in writing, if the infringement would not
have occurred but for the alteration or modification by a party other than the
Indemnifying Party; (ii) use of the intellectual property in combination
with other programs or data, unless such programs and/or data were set forth in
written specifications, a SOW or acceptance criteria as agreed to by the
parties to be used with the Deliverable, Work Product or Service if the
infringement would not have occurred but for the use in combination with such
programs or data; (iii) use of the intellectual property in a way not
provided for or described in the applicable documentation and/or Work Order, if
the infringement would not have occurred but for such use; (iv) use of
other than a current unaltered version of the intellectual property after the
Indemnified Party has been reasonably notified that use of such new release would
avoid the infringement and the Indemnifying Party has reasonably provided to
the other party such new version free of charge, if the infringement would not
have occurred but for the use of other than a current unaltered version of the
intellectual property; or (v) the Indemnifying Party’s compliance with the
Indemnified Party’s’s designs, specifications or instructions, except, with
respect to copyright infringement or willful and knowing patent

 

13

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

infringement or willful
and knowing misappropriation of trade secrets to the extent that the
Indemnifying Party could have complied with such designs, specifications, or
instructions without infringing upon the rights of the third party.

 

5.4                                 Indemnification Procedures.

If any third party claim
is commenced against a Party entitled to indemnification under Section 5.1
or Section 5.2 (the “Indemnified Party”), written notice thereof shall be
given to the Party that is obligated to provide indemnification (the “Indemnifying
Party”) as promptly as practicable but in any event no later than 5 business
days after receipt or actual knowledge of the claim, whichever is earlier;
provided that violation of this notice period by the Indemnified Party shall
not relieve the Indemnifying Party of its indemnification obligations under
this Section 5 unless and only to the extent that such lack of notice is
prejudicial to the Indemnifying Party in any material respect.  If, after such written notice, the
Indemnifying Party shall acknowledge that this Agreement applies with respect
to such claim, then the Indemnifying Party shall be entitled, if it so elects,
in a notice promptly delivered to the Indemnified Party, but in no event less
than 10 days prior to the date on which a response to such claim is due, to
immediately take full control of the defense and investigation of such claim
and defend the same, at the Indemnifying Party’s sole cost and expense.  The Indemnified Party shall cooperate, at the
cost of the Indemnifying Party, in all reasonable respects with the
Indemnifying Party and its attorneys in the investigation, trial and defense of
such claim and any appeal arising therefrom; provided, however, that the
Indemnified Party may, at its own cost and expense, participate, through its
attorneys or otherwise, in such investigation, trial and defense of such claim
and any appeal arising therefrom.  No
settlement of a claim that involves a remedy other than the payment of money by
the Indemnifying Party shall be entered into without the consent of the
Indemnified Party.  After notice by the
Indemnifying Party to the Indemnified Party of its election to assume full
control of the defense of any such claim, the Indemnifying Party shall not be
liable to the Indemnified Party for any legal expenses or other related costs,
fees, or expenses incurred thereafter by such Indemnified Party in connection
with the defense of that claim.  If the
Indemnifying Party does not assume full control over the defense of a claim subject
to such defense as provided in this Section, the Indemnifying Party may
participate in such defense, at its sole cost and expense, and the Indemnified
Party shall have the right to defend the claim in such manner as it may deem
appropriate, at the cost and expense of the Indemnifying Party.  Subject to the terms of this Section 5,
the Indemnifying Party shall will pay all claims, damages, losses, liabilities,
fines, penalties, judgments or amounts paid in final settlement (or actions,
suits or proceedings, or investigations in respect thereof) and fees, costs and
expenses (including all reasonable attorney fees and expenses incurred in
connection therewith) at the time such claim is finally awarded against the
Indemnified Party to such third party by a court of competent jurisdiction or
similar tribunal (or at the time of final settlement thereof) .

 

5.6                                 The foregoing states each party’s
entire liability and obligations and each party’s sole and exclusive remedy for
any patent, copyright or other intellectual property infringement claims, or any
warranty claim by Metavante under Section 6.2(9) with respect to any
of the Deliverables, Work Product or Service under this Agreement.

 

14

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS.

 

6.                                       WARRANTIES

 

6.1                                 By Metavante.  Metavante represents and warrants that:

 

(1)                                  Metavante is a corporation duly
incorporated validly existing and in good standing under the Laws of Wisconsin;

(2)                                  Metavante has all requisite corporate
power and authority to execute, deliver and perform its obligations under this
Agreement;

(3)                                  the execution, delivery and performance
of this Agreement by Metavante (a) has been duly authorized by Metavante
and (b) will not conflict with, result in a breach of or constitute a
default under and other agreement to which Metavante is a party or by which
Metavante is bound;

(4)                                  Metavante is duly licensed, authorized or
qualified to do business and is in good standing in every jurisdiction in which
a license, authorization or qualification is required for the ownership or
leasing of its assets or the transaction of business of the character
transacted by it, except where the failure to be so licensed, authorized or
qualified would not have a material adverse effect on Metavante’s ability to
fulfill its obligations under this Agreement;

(5)                                  Metavante is [*********] with [******]
applicable to Metavante and [********] all applicable [***] and [***] required
of Metavante in connection with its obligations under this Agreement;

(6)                                  there is [*********], [********] or
[*********] to which [***] is a [***] which, if decided unfavorably to
Metavante, would reasonably be expected to have a material adverse effect on
Virtusa’s or Metavante’s ability to fulfill their respective obligations under
this Agreement; and

(7)                                  the [***********] does not infringe upon
the proprietary rights of any third party.

 

6.2                                 By Virtusa.  Virtusa represents and warrants that:

 

(1)                                  Virtusa is a corporation duly
incorporated, validly existing and in good standing under the Laws of Delaware;

(2)                                  Virtusa has all requisite corporate power
and authority to execute, deliver and perform its obligations under this
Agreement;

(3)                                  the execution, delivery and performance
of this Agreement by Virtusa (a) has been duly authorized by Virtusa and (b) will
not conflict with, result in a breach of or constitute a default under and
other agreement to which Virtusa is a party or by which Virtusa is bound;

(4)                                  Virtusa is duly licensed, authorized or
qualified to do business and is in good standing in every jurisdiction in which
a license, authorization or qualification is required for the ownership or
leasing of its assets or the transaction of business of the character
transacted by it, except where the failure to be so licensed, authorized or
qualified would not have a material adverse effect on Virtusa’s ability to
fulfill its obligations under this Agreement;

(5)                                  Virtusa is in compliance with all Laws
applicable to Virtusa and has obtained all applicable permits and licenses
required of Virtusa in connection with its obligations under this Agreement;

(6)                                  there is no outstanding litigation,
arbitrated matter or other dispute to which Virtusa is a party which, if
decided unfavorably to Virtusa, would reasonably be expected to have a material
adverse effect on Metavante’s or Virtusa’s ability to fulfill their respective
obligations under this Agreement;

(7)                                  the Services will be performed in
accordance with professional standards consistent with generally accepted
industry standards.

 

15

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS.

 

(8)                                  the Deliverables as finally delivered to
Metavante following acceptance by Metavante, if any, [**************** ******************************]
set forth in the applicable Work Order for a [******************************** *************]
by Metavante.  The foregoing warranty in
this Section shall not apply to: errors in, or non-conformance by, the
Deliverable caused by (i) Metavante’s negligence or misuse, (ii) Metavante’s
hardware malfunction, or other causes beyond the reasonable control of Virtusa,
(iii) third party software not licensed through Virtusa, (iv) the
installation of the Deliverable in a hardware or operating environment not
expressly stated in the applicable SOW; (v) modification, customization,
extension of or damage to the Deliverables (other than as authorized by, or by,
Virtusa)  or errors in the Deliverable caused in
whole or in party by the performance or non-performance of Metavante of its
obligations under any Work Order.  In the
event of any non-compliance with the foregoing warranty by Virtusa, Metavante
shall notify Virtusa in writing and specify the nature of the non-conformance
and Virtusa shall have [***] to cure such non-compliance from receipt of such
notice.

(9)                                  the Deliverables constitute original
works of authorship and shall not infringe upon the proprietary rights of any
third party, subject to the terms of in Section 5.2 with respect to
infringement;

(10)                            the Deliverables contain no viruses or
similar harmful code at the time first provided to Metavante by Virtusa and
Virtusa shall not introduce any viruses or harmful code into Metavante’s
software or systems; and

(11)                            without the consent of Metavante, Virtusa
shall not insert into any Software any code that would have the effect of
disabling or otherwise shutting down all or any portion of the Software.  Virtusa further represents and warrants that,
with respect to any disabling code that may be part of the Software used to
provide the Services, Virtusa shall not invoke such disabling code at any time,
including upon expiration or termination of this Agreement, without Metavante’s
consent.

 

6.3                                 DISCLAIMER.  EXCEPT AS SPECIFIED IN SECTION 6.1 AND SECTION 6.2,
NEITHER METAVANTE NOR VIRTUSA MAKES ANY OTHER WARRANTIES HEREUNDER WITH RESPECT
TO ANY MATTER (INCLUDING, WITHOUT LIMITATION, THE SERVICES, THE WORK PRODUCT,
THE DELIVERABLES, THE DEVELOPED SOFTWARE OR THE SYSTEMS) AND EACH EXPLICITLY
DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, ORAL OR STATUTORY,
INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR OR SPECIFIC PURPOSE.

 

7.                                       LIMITATION OF LIABILITY

 

7.1                                 LIMITATION OF LIABILITY; DAMAGES. 
EXCEPT AS PROVIDED IN SECTION 7.2 BELOW, IN NO EVENT SHALL EITHER
PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR
CONSEQUENTIAL DAMAGES OF ANY NATURE WHATSOEVER, WHETHER IN CONTRACT, WARRANTY
OR TORT, INCLUDING WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, REVENUE,
DATA, COVER, LOSS OF OR INTERRUPTION OF BUSINESS OF CUSTOMER OR ANY OTHER PARTY
ARISING OUT OF OR IN CONNECTION WITH THE DELIVERY, USE OR PERFORMANCE OF THE
SERVICES, THE DELIVERABLES, ANY SOFTWARE OR ANY OTHER 

 

16

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

MATERIALS OR ITEMS
EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  IN NO EVENT SHALL VIRTUSA’S LIABILITY TO
CUSTOMER FOR ANY CLAIM ARISING OUT OF THIS AGREEMENT OR ANY WORK ORDER
HEREUNDER EXCEED THE AMOUNT ACTUALLY PAID TO VIRTUSA BY CUSTOMER UNDER THE
APPLICABLE Work Order FROM WHICH SUCH CLAIM AROSE.

 

7.2                                 Exclusions.  The limitations or exculpations of liability
set forth in Section 7.1 shall not apply to (1) indemnification
claims, as set forth in Article 5, (2) breaches of Article 3, (3) material
breaches of Article 2, or Section [***], [***], [***] or [***] (5) a
Party’s liability under Section 9.3, or (6) a Party’s liability
resulting from the gross negligence or intentional acts of the Party, its
employees, agents, or subcontractors.

 

8.                                       TERM AND TERMINATION

 

8.1                                 This Agreement will become effective as
of the Effective Date and will remain in effect for a period of 5 years or
until all Services have been completed or terminated as provided herein,
whichever occurs later. Metavante may terminate this Agreement for any reason
upon ninety (90) days prior written notice to Virtusa.  Virtusa may terminate this Agreement for any
reason upon ninety (90) days prior written notice to Metavante; provided that
no active Work Order is in effect. 
Termination of this Agreement will not result in automatic termination
of a Work Order, unless this Agreement is (i) terminated by Metavante, or (ii) terminated
for material breach, in which cases a Work Order shall be terminated if the
terminating party specifically requests that the Work Order be terminated or
the parties mutually agree that any outstanding Work Order(s) will be
coterminated with the Agreement.

 

8.2                                 Either party may terminate this Agreement
and/or a Work Order, immediately upon notice to the other party, if the other
party breaches any material obligation under this Agreement (it being
understood and agreed that any failure to make timely payments to Virtusa shall
be deemed a breach of a material obligation by Metavante), and such party fails
to cure the breach within [******] after written notice to cure.

 

8.3                                 Either party may terminate this Agreement
(including all Work Orders) immediately by written notice to the other if the
other party becomes insolvent, makes a general assignment for the benefit of
creditors, suffers or permits the appointment of a receiver for its business or
assets, or becomes subject to any proceedings under any bankruptcy or
insolvency law, whether domestic or foreign, or is liquidated, voluntarily or
otherwise.

 

8.4                                 Upon termination of this Agreement and/or
any Work Order, each party shall return to the other or destroy all
Confidential Information of the other party other than the Virtusa Intellectual
Property to which Metavante holds license rights under Section 2.3 of this
Agreement (unless the Agreement or Work Order was terminated pursuant to Section 8.2,
in which case said license is considered revoked), and except for any Confidential
Information of the Metavante required by Virtusa to complete an outstanding
Work Order.

 

17

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS.

 

9.                                       INSURANCE.

 

9.1                                 During the Term, Virtusa shall obtain and
maintain at its own expense, insurance of the type and in the amounts set forth
below:

 

(1)                                  statutory workers’ compensation in
accordance with all Federal, state and local requirements;

 

(2)                                  employer’s liability insurance in an
amount not less than $1,000,000 per occurrence, covering bodily injury by
accident or disease, including death;

 

(3)                                  commercial general liability (including
contractual liability insurance) in an amount not less than $1,000,000; and

 

(4)                                  comprehensive automobile liability
covering all vehicles that Virtusa owns, hires or leases in an amount not less
than $1,000,000 (combined single limit for bodily injury and property damage).

 

(5)  Errors
and Omissions insurance covering the Virtusa for loss or damage arising out of
negligent acts or errors or omissions which arise from providing Services under
this Agreement with limits of not less than $2,000,000.

 

(6)  Crime
insurance, including Employee Dishonesty and Computer Fraud coverage for theft
of money or securities that Virtusa holds, or for which Virtusa is legally
liable, arising out of dishonest acts committed by the employees of Virtusa or
its subcontractors, acting alone or in collusion with others, or through the
use of Virtusa’s computer system to fraudulently cause a transfer, with
coverage in a minimum amount of $500,000 and an Excess Liability policy
(umbrella form) of not less than five million dollars ($5,000,000).

 

9.2                                 Insurance Documentation.  To the extent third party insurance is
obtained or maintained pursuant to Section 9.1, Virtusa shall, upon
Metavante’s request, furnish to Metavante certificates of insurance or other
appropriate documentation (including evidence of renewal of insurance)
evidencing all coverages referenced in Section 9.1 and, if and to the
extent applicable, naming Metavante as an additional insured.  Such certificates or other documentation
shall include a provision whereby 30 days’ notice must be received by Metavante
prior to coverage cancellation or material alteration of the coverage by either
Virtusa or Virtusa Agents or the applicable insurer. Such cancellation or material
alteration shall not relieve Virtusa of its continuing obligation to maintain
insurance coverage in accordance with this Article.

 

9.3                                       Risk of Loss. 
Virtusa is responsible for the risk of loss or theft of, or damage to,
any tangible property (e.g., laptop, hardware) of Metavante at a Virtusa
Service Location resulting from Virtusa’s negligence, unless such loss, theft,
or damage was caused by the acts or omissions of Metavante or a Metavante
Agent.  Metavante is responsible for the
risk of loss of, or damage to, any property (e.g., laptop, hardware) of Virtusa
at a Metavante Service Location resulting from Metavante’s neglignece, unless
such loss or damage was caused by the acts or omissions of Virtusa or a Virtusa
Agent.

 

18

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY
WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***]
DENOTES OMISSIONS.

 

10.                                 GENERAL

 

10.1                           Dispute Resolution. Any claims or legal actions by one
party against the other arising out of the relationship between the parties
contemplated herein (whether or not arising under this Agreement) shall be
governed by the laws of the State of New York. 
The United Nations convention on contracts for the International Sale of
Goods shall not apply in any event.

 

In the event of
any controversy or dispute between the parties, the parties shall first
attempt, in good faith, to resolve a dispute or controversy, at the written
request of either party, through discussions between an authorized senior
management representative of each party.

 

Virtusa
acknowledges that the timely and complete performance of its obligations
pursuant to this Agreement is critical to the business and operations of
Metavante.  Accordingly, in the event of
a dispute between Metavante and Virtusa, except with respect to a claim for
breach under Section 3 or 10.3, each Party shall continue to so perform
its obligations under this Agreement in good faith, including payment
obligations, for no less than [******] (during the cure period commencing on
the date the breaching party receives written notice from the non-breaching
party) during the attempted resolution of such dispute unless and until this
Agreement is terminated in accordance with the provisions hereof, unless and
except to the extent that such performance is prevented as a direct result of
the disputed matter.  Notwithstanding the
foregoing, if a dispute is not otherwise resolved within the [***********]
referenced above, the parties may seek and enforce all rights and remedies
under this Agreement and applicable law, including suspension or termination of
performance under this Agreement.

 

10.2                           Entire Agreement. Unless the parties otherwise agree in
writing, this Agreement and the Work Order(s) attached hereto constitute
the entire agreement and understandings between the parties with respect to the
subject matter hereof, and supersede all previous agreements and oral
discussions and understandings between the parties with respect thereto (except
for amounts owed Virtusa under any prior services agreement).

 

10.3                           Non-Solicitation. 
The parties agree that during the term of this Agreement, and for a
period of [**************] after termination/expiration of this Agreement,
neither party shall directly or indirectly solicit for employment, employ or
engage as a consultant/employee any person employed then or [*****************]
by the other party, except as otherwise provided in this Agreement.

 

10.4                           Modification of Agreement. 
This Agreement and any Work Order(s) attached hereto may only be
modified by a written agreement duly signed by persons authorized to sign
agreements on behalf of Metavante and of Virtusa.  Any variance from the terms and conditions of
this Agreement or any Work Order(s) attached hereto as referenced in any
Metavante purchase order(s) or other written notification(s) from the
Metavante will have no legal effect.

 

19

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

10.5                           Enforceability; Waiver. 
If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.  The failure of either party to enforce rights
granted hereunder or to take action against the other party in the event of any
beach hereunder shall not be deemed a waiver by that party as to subsequent
enforcement of rights or subsequent actions in the event of future breaches.

 

10.6                           Marketing; Public Relations. 
Virtusa shall not use Metavante’s name, tradenames, service marks,
trademarks, or logos without Metavante’s prior written consent; except that
[*******************] as a [***] when [********************** *********] on its
marketing materials and its published customer lists.

 

10.7                           Notices.  Any notices
required under this Agreement may be hand delivered or shall be deemed received
three (3) business days after mailing as certified mail, return receipt
requested, to the following addresses: If to Virtusa: at the address listed on
the first page of this Agreement, Attn: President.  If to Metavante: at the address listed on the
first page of this Agreement, Attn: President.

 

10.9                           Assignment.  Neither this
Agreement nor any right or obligation hereunder may be transferred or assigned
by either party without the express prior written notification to the other
party; this notification includes any assignment made to an affiliate of either
party or to an assignee in connection with a merger, acquisition or sale or
transfer of all or substantially all of the business, assets or equity of
either party, provided that the successor/assignee agrees to be bound by all
the terms of this Agreement.

 

10.10                     Independent Contractor.  It is
expressly understood that Virtusa and Metavante are independent contractors,
and that neither has the authority to bind or obligate the other party to any
third party or otherwise to act in any way as the representative of the other, unless
otherwise expressly agreed to in a writing signed by both parties hereto.  The parties do not intend to form a joint
venture or partnership hereby, and no joint venture or partnership is formed
hereby.  Metavante acknowledges and
agrees that Virtusa is in the business of providing consulting and software
development services and that, except as expressly provided in this Agreement,
Virtusa is [***********] from developing for itself, or for third parties, any
deliverables or /software which are [******************] with those provided
hereunder to, or which otherwise exploit Virtusa Intellectual Property,
provided Virtusa is not in violation of Section 1.3, Section 1.9, or Article 3
hereof.

 

10.11                       Survival. The provisions of Sections 2, 3, 4,
5, 6, 7, and 10 will survive the expiration or earlier termination of this
Agreement and/or any Work Order.  All
other rights and obligations of the parties shall cease upon termination or
expiration of this Agreement.

 

IN WITNESS WHEREOF, the
parties have executed this Agreement by their duly authorized representatives
as of the day and year below.

 

20

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS. 

 

	
  METAVANTE CORPORATION

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Metavante”

  	
   

  	
  “Virtusa”

  
	
   

  	
   

  	
   

  
	
  /s/ David S. Fortney

  	
   

  	
  /s/ Thomas R. Holler

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  David S. Fortney

  	
   

  	
  Thomas R. Holler

  
	
  Name

  	
   

  	
  Name

  
	
  Senior Vice President
  and Division Executive

  	
   

  	
   

  
	
  Electronic Presentment
  and Payment

  	
   

  	
   

  
	
  Metavante Corporation

  	
   

  	
  CFO

  
	
  Title

  	
   

  	
  Title

  
	
  3/4/2004

  	
   

  	
  3/23/04

  
	
  Date

  	
   

  	
  Date

  

 

 

	
  /s/ Cary M. Serif

  	
   

  
	
  Signature

  	
   

  
	
  Cary M. Serif

  	
   

  
	
  Name

  	
   

  
	
  Executive Vice
  President, eFinance Grp.

  	
   

  
	
  Title

  	
   

  
	
  Date:

  	
   

  

 

21

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS. 

 

 

IN WITNESS WHEREOF, the
parties have executed this Agreement by their duly authorized representatives
as of the day and year below.

 

	
  METAVANTE CORPORATION

  	
   

  
	
  “Metavante”

  	
   

  
	
   

  	
   

  
	
  /s/ Jamie Geschke

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
  Jamie Geschke

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  
	
  Sr. Vice
  President & General Manager

  	
   

  
	
  Financial Technologies
  Solutions/

  	
   

  
	
  Customer Relationship
  Management

  	
   

  
	
  Title

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Paul Danola

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
  Paul Danola

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  
	
  Executive Vice
  President

  	
   

  
	
  Financial Services
  Group

  	
   

  
	
  Title

  	
   

  
	
   

  	
   

  
	
  3/10/04

  	
   

  
	
  Date

  	
   

  

 

22

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS. 

 

Exhibit A

 

Work Order #

 

	
  Metavante:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Contract Type:

  	
   

  	
  [ ] Retainer ; [ ]Time
  and Material; [ ]Fixed Price (check all that apply)

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
   

  

 

This Work Order and any
amendments hereto are subject to the terms and conditions of the Master
Services Agreement dated
                    
200   between Virtusa and Metavante.

 

	
  Services:

  	
   

  
	
   

  	
   

  
	
  Deliverables:

  	
   

  
	
   

  	
   

  
	
  Work Schedule:

  	
   

  
	
   

  	
   

  
	
  Resources:

  	
   

  
	
   

  	
   

  
	
  Resources and Monthly
  Fee Schedule:

  	
   

  

 

	
  Qty

  	
   

  	
  Description Project Team Resources

  	
   

  	
  Utilization

  	
   

  	
  Daily

  Rate

  	
   

  	
  Monthly

  Fee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MONTHLY FEE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

23

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS. 

 

Additional Resources:

 

Payment Terms and
Acceptance Criteria:

 

Metavante Responsibilities:

 

Special Terms:

 

 

	
   

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Metavante”

  	
   

  	
  “Virtusa”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

  

 

24

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION
PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS. 

 

EXHIBIT B

 

Definitions. 
The following defined terms used in this Agreement shall have the
meanings specified below:

 

“Agreement”
shall mean this Master Services Agreement between Metavante and Virtusa.

 

“Confidential
Information” of Metavante or Virtusa shall mean all information and
documentation of Metavante and Virtusa, respectively, whether disclosed to or
accessed by Metavante or Virtusa in connection with this Agreement, including (1) with
respect to Metavante, all Metavante Data and all information of Metavante or
its customers, suppliers, contractors and other third parties doing business
with Metavante, (2) with respect to Metavante and Virtusa, the terms of
this Agreement and (3) any information developed by reference to or use of
Metavante’s or Virtusa’s information; provided , however, that except to the
extent otherwise provided by Law, the term “Confidential Information” shall not
include information that (a) is independently developed by the recipient,
as demonstrated by the recipient’s written records, without violating the
disclosing Party’s proprietary rights, (b) is or becomes publicly known
(other than through unauthorized disclosure), (c) is disclosed by the
owner of such information to a third party free of any obligation of
confidentiality, (d) is already known by the recipient at the time of
disclosure, as demonstrated by the recipient’s written records, and the
recipient has no obligation of confidentiality other than pursuant to this
Agreement or any confidentiality agreements between Metavante and Virtusa
entered into before the Effective Date or (e) is rightfully received by a
Party free of any obligation of confidentiality, provided that (i) such
recipient has no knowledge that such information is subject to a
confidentiality agreement and (ii) such information is not of a type or
character that a reasonable person would have regarded it as confidential.

 

“Data
Safeguards” shall have the meaning set forth in Section 1.3.

 

“Deliverables”
are defined as the Developed Software and the Materials.

 

“Developed
Software” shall mean any Software, or modifications or enhancements to
Software, and Related Documentation developed pursuant to this Agreement by or
on behalf of (1) Virtusa, (2) Virtusa Agents, (3) Virtusa and
Metavante or Metavante Agents jointly, (4) Virtusa Agents and Metavante or
Metavante Agents jointly or (5) Virtusa, Virtusa Agents, Metavante and
Metavante Agents jointly.

 

“Force
Majeure Event” shall have the meaning set forth in Section 1.10.

 

“Governmental
Authority” shall mean any Federal , state, municipal, local, territorial,
or other governmental department, regulatory authority, judicial or
administrative body, whether domestic, foreign or international.

 

“Law”
shall mean any declaration, decree, directive, legislative enactment, order,
ordinance, regulation, rule or other binding restriction of or by any
Governmental Authority.

 

25

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS. 

 

“Losses”
shall mean any and all damages, fines, penalties, deficiencies, losses,
liabilities (including settlements and judgments) and expenses (including
interest, court costs, reasonable fees and expenses of attorneys, accountants
and other experts and professionals or other reasonable fees and expenses of
litigation or other proceedings or of any claim, default or assessment).

 

“Materials”
means literary works or other works of authorship created under this Agreement,
including manuals, training materials and documentation, but excluding Software
and Related Documentation.

 

“Metavante”
shall mean Metavante Corporation, a Wisconsin corporation.

 

“Metavante
Agents” shall mean the agents, subcontractors and representatives of
Metavante, other than Virtusa and Virtusa Agents.

 

“Metavante
Contract Manager” shall mean the individual designated by Metavante to
serve as the primary Metavante representative to Virtusa.

 

“Metavante
Data” shall mean all data and information (1) submitted to Virtusa or
Virtusa Agents by or on behalf of Metavante, (2) obtained, developed or
produced by Virtusa or Virtusa Agents in connection with this Agreement or (3) to
which Virtusa or Virtusa Agents have access in connection with the provision of
the Services.

 

“Metavante
Service Location(s)” shall mean any service location owned or leased by
Metavante at which Virtusa provides the Services for Metavante.

 

“Metavante
Software” shall have the meaning set forth in Section 2.4 hereof.

 

“Parties”
shall mean Metavante and Virtusa, collectively.

 

“Party”
shall mean either Metavante or Virtusa, as the case may be.

 

“Project
Staff” shall mean the personnel of Virtusa and Virtusa Agents who provide
the Services.

 

“Related
Documentation” shall mean, with respect to Software and Tools, all
materials, documentation, specifications, technical manuals, user manuals, flow
diagrams, file descriptions and other written information that describes the
function and use of such Software or Tools, as applicable.

 

“Residual
Information” shall mean concepts, know-how or techniques that are retained
in the unaided memories of a Party’s personnel who have access to Confidential
Information of the other party, but only to the extent that such concepts,
know-how or techniques are part of the general knowledge and skill of such
personnel who work in the application development and maintenance sector and
are not Confidential Information of the other Party.

 

“Services”
are defined as the professional services provided by Virtusa’s employees and
consultants for Metavante under this Agreement.

 

26

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS. 

 

“Software”
shall mean the source code and object code versions of any applications
programs, operating system software, computer software languages, utilities,
other computer programs and Related Documentation, in whatever form or media,
including the tangible media upon which such applications programs, operating
system software, computer software languages, utilities, other computer
programs and Related Documentation are recorded or printed, together with all
corrections, improvements, updates and releases thereof.

 

“Third
Party Claims”  shall mean claims raised against a Party by a
Third Party.

 

“Tools”
shall mean any Software development and performance testing tools, know-how,
methodologies, processes, technologies or algorithms and Related Documentation
used by Virtusa in providing the Services.

 

“Virtusa”
shall mean Virtusa Corporation, a
Delaware corporation.

 

“Virtusa
Agents” shall mean the agents, subcontractors and representatives of
Virtusa.

 

“Virtusa
Contract Manager” shall have the meaning set forth in Section 1.5.

 

“Virtusa
Service Location(s)” shall mean any Virtusa service location set forth in Exhibit C
and any other service location approved by Metavante in writing.

 

“Work Product”
shall mean the Deliverables and all information developed by Virtusa for
Metavante under this Agreement.

 

27

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

AMENDMENT
TO THE MASTER SERVICES AGREEMENT

 

WHEREAS, Metavante
Corporation, a Wisconsin corporation with its primary place of business at 4900
West Brown Deer Road, Brown Deer WI 
53223 (“Metavante”) and Virtusa Corporation, a Delaware corporation with
offices at 2000 West Park Drive, Westborough, MA 01581 (“Virtusa”) entered into
a Master Services Agreement dated as of March 23, 2004  (the “MSA”);

 

WHEREAS,  the parties seek to amend the MSA to permit
the parties and the Affiliates (as defined below) of either party to enter into
Work Orders with the other party or Affiliates thereof, subject to the terms of
the MSA;

 

WHEREAS, the parties seek
to extend enterprise wide pricing to Metavante and its Affiliates who engage
Virtusa to perform services, on the terms set forth herein;

 

NOW THEREFORE, for
valuable consideration, the sufficiency of which is hereby acknowledged, the
parties agree as follows:

 

1.               Definitions

 

a.               “Affiliate” shall mean, with respect to
any Person, any other Person who is directly or indirectly controlling,
controlled by or under common control with such Person as of the Effective Date
of the MSA or thereafter.  A Person shall
be deemed to be an Affiliate of another Person only so long as the foregoing
control relationship exists.  For the
purposes of this definition, the term “control”, when used with respect to any
Person, means the possession, directly or indirectly, of voting securities
representing the right to elect a majority of the Board of Directors (or other
governing body) of such Person.

 

b.              “Person” means an individual,
corporation, partnership, association, trust or other entity or organization.

 

c.               Capitalized terms used herein but not
defined herein shall have the meaning set forth in the MSA.

 

2.               Each party and/or any of its Affiliates
may enter into a Work Order with the other party or any Affiliate thereof,
subject to the terms of the MSA.  For
purposes of such Work Order, the party entering into the Work Order shall be
considered the sole contracting party and such party’s Affiliates will have no
liability with respect to such Work Order and any terms hereunder or
thereunder, unless specifically stated in a Work Order.  Thus, for example, if
[*********************************] 
entered into a Work Order with Virtusa Corporation, only [*****************]
would be deemed to be a party to the Work Order, and with respect to the MSA,
[*********************] would replace references to “Metavante” throughout the
MSA with respect to that Work Order only.

 

3.               The parties agree that the resource rates
as set forth in Exhibit A attached hereto [*********************]
as set forth in Exhibit B attached hereto shall be in effect for
the term of January 1, 2006 to December 31, 2006 (the “Term”), and
shall apply to all work orders entered into between Metavante, or an Affiliate
of Metavante, with Virtusa during the Term. 
The rates [*********************] to any Work Order during the Term
under which Virtusa performs services for any such party during the Term,
subject to the terms herein.

 

4.               In the event that Metavante or an
Affiliate thereof acquires any existing customer of Virtusa during the Term,
the parties shall mutually agree in writing on the rates and
[*************************] except that in no event shall any fees billed by
Virtusa to the acquired customer prior to the acquisition be [***********************
***********************************************************]

 

1

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

5.               The infrastructure fee on all  Work Orders entered into by Metavante or any
Affiliate with Virtusa during the Term shall be equal to [******************************************************************
***************************************].

 

6.               Except as otherwise stated herein, all
terms of the MSA remain in full force and effect.

 

 

IN WITNESS WHEREOF, the
parties have executed this Amendment to the MSA by their duly authorized
representatives as of the day and year below.

 

	
  METAVANTE CORPORATION

  	
   

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Metavante”

  	
   

  	
   

  	
  “Virtusa”

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ James R. Geschke

  	
   

  	
   

  	
  /s/ Thomas R. Holler

  
	
  Signature

  	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  
	
  James R. Geschke

  	
   

  	
   

  	
  Thomas R. Holler

  
	
  Name

  	
   

  	
   

  	
  Name

  
	
  Executive Vice
  President

  	
   

  	
   

  	
   

  
	
  Financial Technology
  Services

  	
   

  	
   

  	
  CFO

  
	
  Title

  	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
  3/31/06

  
	
  Date

  	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  
	
  METAVANTE COPORATION

  	
   

  	
   

  	
   

  
	
  “Metavante”

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ David S. Fortney

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  David S. Fortney

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Senior Vice President
  and Division Executive

  	
   

  	
   

  	
   

  
	
  Electronic Presentment
  and Payment

  	
   

  	
   

  	
   

  
	
  Metavante Corporation

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  

 

2

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHIBIT A

 

Virtusa
Resource Rates for Metavante and its Affiliates During the Term

 

[***]

 

3

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHBIT B

 

[***]

 

4

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION
PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

AMENDMENT
# 2 TO THE MASTER SERVICES AGREEMENT

 

WHEREAS, Metavante
Corporation, a Wisconsin corporation with its primary place of business at 4900
West Brown Deer Road, Brown Deer WI 
53223 (“Metavante”) and Virtusa Corporation, a Delaware corporation with
offices at 2000 West Park Drive, Westborough, MA 01581 (“Virtusa”) entered into
a Master Services Agreement dated as of March 23, 2004,as amended to
date  (the “MSA”);

 

WHEREAS,  the parties seek to amend the MSA to add a
Canadian rate card for use in connection with services to be performed by
Virtusa for a Canadian Affiliate of Metavante, subject to the terms of the MSA;

 

NOW THEREFORE, for
valuable consideration, the sufficiency of which is hereby acknowledged, the
parties agree as follows:

 

1.               The parties agree that the resource rates
as set forth in Exhibit A attached hereto shall be in effect for
the term of January 1, 2006 to December 31, 2006 (the “Term”),
and shall apply to all work orders entered into between Virtusa and any
Canadian Affiliate of Metavante.

 

2.               Except as otherwise stated herein, all
terms of the MSA remain in full force and effect.

 

 

IN WITNESS WHEREOF, the
parties have executed this Amendment to the MSA by their duly authorized
representatives as of the day and year below.

 

	
  METAVANTE CORPORATION

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Metavante”

  	
   

  	
  “Virtusa”

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ James R. Geschke

  	
   

  	
  /s/ Danford Smith

  
	
  James R. Geschke

  	
   

  	
  Signature

  
	
  Executive Vice
  President & Division Executive

  	
   

  	
   

  
	
  Financial Technology
  Services

  	
   

  	
  Danford Smith

  
	
  Date:

  	
   

  	
   

  	
  Name

  
	
   

  	
   

  	
  President and COO

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
  9/28/06

  
	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David S. Fortney

  	
   

  	
   

  
	
  David S. Fortney

  	
   

  	
   

  
	
  Senior Vice President &
  Division Executive

  	
   

  	
   

  
	
  Electronic Presentment
  and Payment

  	
   

  	
   

  
	
  Date:

  	
  9/21/06

  	
   

  	
   

  
					

 

1

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHIBIT A

 

Virtusa
Resource Rates for Canadian Metavante Affiliates During the Term

 

[***]

 

2

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

AMENDMENT
# 3 TO THE MASTER SERVICES AGREEMENT

 

WHEREAS, Metavante
Corporation, a Wisconsin corporation with its primary place of business at 4900
West Brown Deer Road, Brown Deer WI 
53223 (“Metavante”) and Virtusa Corporation, a Delaware corporation with
offices at 2000 West Park Drive, Westborough, MA 01581 (“Virtusa”) entered into
a Master Services Agreement dated as of March 23, 2004, as amended to
date  (the “MSA”);

 

WHEREAS, the parties
previously entered into the first Amendment to the MSA on March 31, 2006
and Amendment #2 to the MSA on September 28, 2006;

 

WHEREAS,  the parties seek to amend the MSA to change
the United States of America (U.S.) and Canadian rate cards for use in
connection with services to be performed by Virtusa, subject to the terms of
the MSA;

 

NOW THEREFORE, for
valuable consideration, the sufficiency of which is hereby acknowledged, the
parties agree as follows:

 

1.               [********************] been incorporated
into the resource rates set forth in Exhibit A of this Amendment #3
and Virtusa will cease billing [**********************] on all invoices for
services starting March 1, 2007. 
Effective March 1, 2007, all references to a
[****************************] including item #5 in the Amendment dated March 31,
2006, are hereby deleted.

 

2.               That the resource rates as set forth in Exhibit A
attached hereto [*************************] set forth in Exhibit B
shall be in effect beginning March 1, 2007, and shall apply to all
services provided under any Work Order, Exhibit C, entered into
between Metavante, or an Affiliate of Metavante, and Virtusa.

 

3.               Resource rates in Exhibit A may be
adjusted on an annual basis beginning April 1, 2008.  

[*******************************************************************************************

*****]

 

[********] shall
be based on the [*********] in the [***************************************** ***]conducted
and published by [**********] or such other comparable source as the Parties
may mutually agree to.

 

4.               Resources that perform services at a
[****************] locations are defined to be [***] resources and will be
invoiced using the [***] rate.  Resources
that perform services in a country where Virtusa operates an
[*****************] are defined to be [***] resources and will be invoiced
using the [***] rate.

 

5.               [********************************************************************************************
*********************************************************************************************
********************************************]

 

6.               Travel expenses will be reimbursed when
Virtusa has obtained Metavante’s prior written approval.

 

Eligible travel expenses
for reimbursement:

 

a.               [*************************************************************************************
**************************************************************************************]

 

b.              Air, lodging, land travel when Metavante
requests the resource to travel from their assigned location in the U.S. or
Canada to another location in U.S. or Canada.

 

Non-eligible travel
expenses:

 

c.               [*************************************************************************************
***********************]

 

1

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION
PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

7.               Each month Virtusa will invoice Metavante for services
performed the previous month for the services defined in the Work Order.  There will be one invoice per Work Order,
delivered to the address specified by Metavante’s Accounts Payable
department.  Each invoice will indicate
the Work Order identification and provide a breakdown and distribution of
charges by name of the individual personnel assigned to the Work Order.  Metavante shall pay Virtusa within [***] days
after receipt of such invoice submitted by Virtusa.

 

8.               All Virtusa Resources providing services
under any Work Order shall record project hours in Metavante’s project report
system.  Metavante will inform Virtusa of
the project codes to use for each Work Order for time reporting.

 

9.               Metavante will provide Virtusa with
Metavante’s non-employee on-boarding requirements.  [*******************************************************************************************
****************************************] 
Virtusa will notify Metavante if any national, regional or local laws
prevent compliance with any on-boarding requirement.

 

10.         Except as otherwise stated herein, all
terms of the MSA remain in full force and effect.

 

 

IN WITNESS WHEREOF, the
parties have executed this Amendment to the MSA by their duly authorized
representatives as of the day and year below.

 

	
  METAVANTE CORPORATION

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Metavante”

  	
   

  	
  “Virtusa”

  
	
   

  	
   

  	
   

  
	
  /s/ Frank D’Angelo

  	
   

  	
  /s/ Thomas R. Holler

  
	
  Signature

  	
   

  	
  Signature

  
	
  Frank D’Angelo

  	
   

  	
  Thomas R. Holler

  
	
  Name

  	
   

  	
  Name

  
	
  Sr. EVP

  	
   

  	
  CFO

  
	
  Title

  	
   

  	
  Title

  
	
  3/25/07

  	
   

  	
  March 29, 2007

  
	
  Date

  	
   

  	
  Date

  

 

2

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHIBIT A

 

Virtusa
Resource Rates for Metavante and its Affiliates

Effective
March 1, 2007

 

[***]

 

3

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHBIT B

 

[***]

 

4

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHBIT C

 

WORK ORDER TEMPLATE

 

	
  Customer:

  	
   

  	
  Metavante
  Corporation

  
	
   

  	
   

  	
   

  
	
  Project Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Start Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Services:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [******]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Deliverables:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Work Schedule:

  	
   

  	
   

  
	
   

  
	
  Resources and Monthly Fee Schedule:

  

 

	
  Number

  	
   

  	
  Resource Role

  	
   

  	
  Days/Wk

  	
   

  	
  Location

  	
   

  	
  Daily Rate

  	
   

  	
  Monthly Total

  	
   

  	
  Annual Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Resource
  Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Travel
  Estimate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Estimated Fees

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Payment Terms and
Acceptance Criteria:

 

Payment will be in
accordance with the terms defined in the Master Service Agreement (MSA).

 

Metavante
Responsibilities:

 

Approval:

	
  Metavante Corporation

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Customer”

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date
  (“Effective Date”)

  

 

5

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH
THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

AMENDMENT
TO THE MASTER SERVICES AGREEMENT

 

WHEREAS, Metavante Corporation, a Wisconsin corporation with its primary
place of business at 4900 West Brown Deer Road, WI 53223 (“Metavante”) and
Virtusa Corporation, a Delaware corporation with offices at 2000 West park
Drive, Westborough, MA 01581 (“Virtusa”) entered into a Master Services
Agreement dated as of March 23, 2004 (the “MSA”);

 

WHEREAS, the parties seek to amend the MSA to permit the parties and the
Affiliates (as defined in the MSA) of either party to enter into Work Orders
with the other party or Affiliates thereof, subject to the terms of the MSA;

 

WHEREAS, the parties seek to establish a framework for Service Level
Agreements (“SLAs”) to be specified for Work Orders where Metavante and its
Affiliates engage Virtusa to perform services;

 

NOW THEREFORE, the parties agree as follows:

 

1.
Definitions

 

a)              “Engagement Type”
shall mean, with respect to any Work Order, the nature of the work being
performed by Virtusa.  Only the
Engagement Types identified in Attachment A of this Amendment shall be governed
by this Amendment.

 

b)             “SLA” Service Level Agreement shall mean,
with respect to any Work Order for the Engagement Types set forth in Attachment
A, the applicable specific measurements of the service performed by Virtusa on
Metavante’s behalf, targets levels for such service, remediation or cure
actions available if target levels are not achieved and any penalties that
might be incurred by Virtusa if cure actions do not result in Virtusa
performing services at the applicable SLA level..  The specific SLAs for each Engagement Type
are set forth in Attachment A.  Work
Orders may provide for more than one project or units of work for a single
project.  The parties agree that:

 

1.               Service Level Target (Level 1) SLAs will
apply only to individual projects or units of work for such project; and

 

2.               Increased Impact Service Level (Level 2)
SLAs will apply to all projects and/or unites of work contained in a
single  Work Order, e.g. a large project
with many units of work, a group of projects or a group of activities listed in
a single Work Order).

 

If
Virtusa’s performance on a project or unit of work results [*************************************
**************************************] if its performance for any other unit
of work or project under the same Work Order exceeds the applicable SLA target
for such unit or work or project.

 

For
illustrative purposes only,  Virtusa
[**************************************] by completing all of the projects
within a singe Work Order per the agreed upon 

 

1

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH
THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

estimates
in aggregate, even though some projects came in above estimate and below
estimate.  Virtusa may not, however,
[**************************************] **********************************
****************************************************************************************
*******************************]

 

c)              “Immediate Defect” shall
mean, with respect to any work order, an identified defect in a deliverable
that causes a system outage (e.g. system becomes “hung” or crashes)  or prevents further testing of the program or
component and a workaround does not exist and the defect must be fixed before
testing can continue.   This definition of
“Immediate Defect” refers only to the development or defect fixing processes,
and is not the same as a production issue/ticket.

 

d)             “High Defect” shall mean,
with respect to any Work Order, an identified material defect in a deliverable
such as a data loss, incorrect functionality, or other issues cause material
impairment but not interrupted functionality.

 

e)              “Priority Level” shall mean,
with respect to any Work Order, the following:

 

·                  Priority 0 – Severe
impact on Metavante’s client’s productivity, severe corruption of data,
requires immediate change

·                  Priority 1 – Significant
impact on Metavante’s client’s productivity, issue directly affects Metavante’s
client’s end-user

·                  Priority 2 –
Significantly reduces system effectiveness, required for next major processing
(such as month/quarter end)

·                  Priority 3 – Work-around
is available, several methods to resolve issue

 

Metavante will assign priority levels to
defects. If Virtusa disagrees with the classification of defect, they will
escalate to the project triage committee for resolution.

 

2. SLAs shall apply
only to Work Orders for Engagement Types set forth in  Exhibit A.  Virtusa and Metavante may agree in writing,
however, that certain projects are exempt from [******************] (even
though metrics may still be tracked) for individual units of work, projects or
Work Orders based on mutual agreement and written or electronic approval
between the overall Virtusa Delivery Manager and a senior level manager
designated from Metavante.  Such
exemptions may apply if:

 

a. A period of execution is necessary in order to
baseline metrics after knowledge transfer when a new group or a new engagement
type in an existing group is engaged prior to any penalties being effective(
the parties will mutually agree in writing as to the baseline/benchmarking
period); or

 

b. Virtusa is unable to operate within specified
operating thresholds of metrics due to reasons other than caused directly by
Virtusa’s negligence. For the avoidance of doubt, Virtusa shall have no
liability or deemed to fail and SLA hereunder due to any error or defect or other
SLA failure due to: programming errors in, or non-conformance to any metric
hereunder to the extent caused directly or indirectly by (i) Metavante’s
hardware malfunction, or other causes beyond the reasonable control of Virtusa,
(ii) third party software not licensed through Virtusa, (iii) the
installation or operation of the application in a hardware or operating
environment not expressly stated in the applicable Work Order;(iv) modification,
customization, extension of or damage to the application (other than by
Virtusa); (v) Metavante’s failure to fulfill its own responsibilities
under the MSA and/or applicable Work Order (“Excluded Errors”). For the
avoidance of doubt, the defects shall 

 

2

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH
THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

also not apply to errors surrounding functionality
(or lack of) unless the functionality is required and expressly stated in the
specifications in the Work Order. To the extent any of the Excluded Error
causes an SLA to be missed or a metric to fail, the parties will make a
corresponding adjustment to such metric or SLA to reflect the Excluded Error.

 

3.
[**************************************************************************************************
****************************************************************************************************
*************************************] Metavante shall provide written
acceptance or rejection of such Traceability Process within [***] of receipt of
such Traceability Process.  Metavante’s
failure to provide written acceptance or rejection during such period shall
constitute Metavante’s acceptance of the Traceability Process proposed by
Virtusa.  Virtusa’s failure to develop
any such Traceabilitiy Process, however, shall not constitute a waiver of its
SLA obligations hereunder.

 

4. Virtusa and
Metavante shall conduct all SLA measurements based on the then current mutually
approved written effort estimates (refined estimate plus agreed upon changes),
project schedule and quality estimates (post scope change adjustments).

 

5. Virtusa will be measured
for [****************] based solely on its limited scope of responsibility and
deliverables as set forth in the applicable Work Order (e.g. Virtusa’s
[*************] will not influenced by project successes or failures which are
the responsibility of Metavante and/or third parties).

 

6. Virtusa will report
the metrics described in Schedule A for each work order by line of business to
Metavante [*************]. If an SLA is missed, Metavante will provide written
or e-mail notice to Virtusa within [*****************] after receiving the
metrics reports from Virtusa and the parties will mutually determine the cause
of the SLA failure. If the parties mutually agree in writing that
[******************************************************], then Virtusa shall
undertake corrective action as set forth in the SLA. Virtusa will not be
responsible [**********] if it can be established that SLAs were missed due to
[******************************] on Metavante’s part.

 

7. The parties will
also conduct a mutual estimate review if there is an effort variance or a
productivity SLA is missed. A project schedule review will be conducted as soon
as schedule variance forecast or SLA is missed.

 

8. Every project or
group of projects defined in a Work Order must have defined deliverables for
the duration of each project or Work Order. 
Such deliverables may be set forth in a Work Order schedule which will
be mutually agreed upon in writing between the parties.

 

9. Each SLA metric
will have the following operating values:

 

·                  Green, when
values are within acceptable or operating thresholds or better than desired
values

 

·                  Yellow, when a
failure to meet service level target has been detected

 

·                  Red, when value
exceeds increased impact service levels

 

3

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH
THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

10. Upon missing an
SLA target [******************************************], a cure period will be
provided to Virtusa to bring metrics into accepted operating thresholds.  Specific cures are defined in Attachment A of
this Amendment.

 

4

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH
THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

11. Virtusa’s performance of the services in accordance with the service
levels and metrics as set forth herein are also conditioned on mutually agreed
upon (in writing) assumptions and scope for each Work Order. If during the
course of any Work Order, if any of these assumptions are proved invalid or
change, or if the scope changes for a Work Order for any reason, or a Metavante
Non-Compliance (as defined below) occurs, Virtusa has the right to make a
written proposal (a “Change Request”) detailing the nature of the Metavante
Non-Compliance, or a change or modification to the Work Order scope or related
assumption. Such Change Request may result in a change in the metrics, service
levels, timelines and/or nature and size of the team assigned to the Work
Order, or as otherwise agreed in writing by the parties.

 

With respect to the performance and satisfaction of the service levels
and metrics as set forth herein, both parties acknowledge and agree that
Virtusa’s performance of the services and achievement of the service levels and
metrics as set forth herein, are also subject to the timely and satisfactory
performance of Metavante’s applicable written obligations and responsibilities
under this Agreement and other agreements related hereto (including without
limitation, performing testing or acceptance procedures, responding to change
requests of Virtusa, providing access to equipment and needed resources,
dedicating personnel to timely complete the applicable tasks or providing
responses to information requests) (in the aggregate termed “Metavante Service
Level Obligations”). To the extent that Metavante fails to comply with the
Metavante Service Level Obligations, Virtusa shall have the right to submit a
Change Request in good faith and Virtusa shall be relieved of its applicable
service level obligations until such Change Request is agreed to by the parties
on mutually agreeable terms in writing. In connection with the applicable Work
Order, the parties will mutually agree on any additional obligations, if any,
of either party.

 

The parties will use all reasonable commercial efforts to resolve any
such Change Requests as soon as possible and agree on any impacts or
forgiveness or abeyance of any service level metrics or timelines and
expectations. If the parties are unable to agree on a resolution, the parties
agree to work continuously to resolve the issue and escalate the issues to the
respective program managers, Delivery Unit Heads and executive sponsors, if and
as needed. Additionally, Metavante shall use all reasonable commercial efforts
to cure any Metavante Non-Compliance to the extent reasonably possible. During
the time period in which a Change Request of Virtusa has been submitted but not
executed by Metavante, Virtusa shall continue to perform the Services at
existing rates until resolution. However, in no event shall Virtusa be deemed
to be in violation of the particular metric against which Virtusa is managing
nor shall Virtusa be obligated to perform any services [***********************************************]
even if the applicable tolerance level has been exceeded until such time as all
outstanding Change Requests have been finalized and executed in good faith by
the parties hereto.

 

With respect to [******************************************], to the
extent that any Change Request as executed by the parties adds or reduces
additional time or effort to any existing Work Order, such additional time
shall [***************************************************] for the purpose of
determining the [*************] of hours or effort provided for the effort and
the amount of tolerance against which Virtusa is managing and is measured. In
this connection, Virtusa will accompany any re-estimate by Virtusa with a
Change Request, if applicable, to reflect any increased or decreased time as a
result of a Project Change.

 

	
  12. Virtusa will track,
  measure and report the SLA metrics monthly by project, group or Work Order
  and the line of business.

  
	
   

  	
   

  
	
  13. [************************************************************************************************
  ************************************************************************************************]

  

 

5

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH
THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

	
  14. [**********************************************************************************************
  ***************************************************************]

  
	
   

  	
   

  
	
  15.
  [****************************************]

  
	
   

  	
   

  
	
        ·

  	
  [************************************************************************]

  
	
   

  	
   

  
	
        ·

  	
  [**************************************************************************]

  
	
   

  	
   

  
	
        ·

  	
  [**********************************************************************************************
  ***********************************************************************************************
  *************************************]

  
			

 

IN WITNESS WHEREOF, the parties have executed
the Amendment to the MSA by their duly authorized representatives as of the day
and year below.

 

	
  METAVANTE CORPORATION

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Metavante”

  	
   

  	
  “Virtusa”

  
	
   

  	
   

  	
   

  
	
  /s/
  Dave Fortney

  	
   

  	
  /s/
  Danford Smith

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Dave
  Fortney

  	
   

  	
  Danford
  Smith

  
	
  Name

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  
	
  SVP &
  CTO

  	
   

  	
  COO

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  28
  March 2008

  	
   

  	
  4-13-08

  
	
  Date

  	
   

  	
  Date (“Effective
  Date”)

  

 

6

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH
THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

Attachment A

Service Level Table

 

[***]

 

7

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

AMENDMENT # 5 TO THE MASTER SERVICES AGREEMENT

 

WHEREAS,
Metavante Corporation, a Wisconsin corporation with its primary place of
business at 4900 West Brown Deer Road, Brown Deer WI  53223 (“Metavante”) and Virtusa Corporation,
a Delaware corporation with offices at 2000 West Park Drive, Westborough, MA
01581 (“Virtusa”) entered into a Master Services Agreement dated as of March 23,
2004, as amended  (the “MSA”);

 

WHEREAS,
the parties previously entered into the first Amendment to the MSA on March 31,
2006, Amendment #2 to the MSA on September 28, 2006 and Amendment #3 to
the MSA dated as of March 29, 2007 (“Amendment No. 3”);

 

WHEREAS,  the parties seek to amend the MSA to reflect
rates in effect under the MSA and related work orders for the period of April 1,
2008 to March 31, 2009, subject to the terms of the MSA;

 

NOW
THEREFORE, for valuable consideration, the sufficiency of which is hereby
acknowledged, the parties agree as follows:

 

1.               That the resource rates as
set forth in Exhibit A attached hereto [*******************************]
as set forth in Exhibit B attached hereto shall be in effect
beginning April 1, 2008, and shall apply to all services provided under
any Work Order entered into between Metavante, or an Affiliate of Metavante,
and Virtusa during the period from April 1, 2008 to March 31,
2009.  The Exhibits A and B attached
hereto replace in their entirety such exhibits in Amendment No. 3.

 

2.               Section 5 of Amendment No. 3
is hereby deleted for all purposes hereunder and of no further force or effect.

 

3.               Capitalized terms used
herein but not defined herein shall have the meanings set forth in the MSA.

 

4.               Except as otherwise stated
herein, all terms of the MSA remain in full force and effect, including without
limitation, Sections 3, 4, 6, 7, 8 and  9
of Amendment No. 3

 

IN
WITNESS WHEREOF, the parties have executed this Amendment to the MSA by their
duly authorized representatives as of the day and year below.

 

	
  METAVANTE CORPORATION

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Metavante”

  	
   

  	
  “Virtusa”

  
	
   

  	
   

  	
   

  
	
  /s/
  David S. Fortney

  	
   

  	
  /s/
  Paul D. Tutun

  
	
  Signature

  	
   

  	
  Signature

  
	
  David
  S. Fortney

  	
   

  	
  Paul
  D. Tutun

  
	
  Name

  	
   

  	
  Name

  
	
  SVP &
  CTO

  	
   

  	
  VP &
  General Counsel

  
	
  Title

  	
   

  	
  Title

  
	
  June 20,
  2008

  	
   

  	
  6-30-08

  
	
  Date

  	
   

  	
  Date

  

 

1

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHIBIT A

 

Virtusa
Resource Rates for Metavante and its Affiliates

 

[***]

 

2

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHBIT B

 

[***]

 

3

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

AMENDMENT # 6 TO THE MASTER SERVICES AGREEMENT

 

WHEREAS,
Metavante Corporation, a Wisconsin corporation with its primary place of
business at 4900 West Brown Deer Road, Brown Deer WI  53223 (“Metavante” or “Customer”) and Virtusa
Corporation, a Delaware corporation with offices at 2000 West Park Drive,
Westborough, MA 01581 (“Virtusa”) entered into a Master Services Agreement
dated as of March 23, 2004, as amended 
by the Prior Amendments  (as
defined below) (the “Agreement”);

 

WHEREAS,
the parties previously entered into the first Amendment to the MSA on March 31,
2006, Amendment #2 to the MSA on September 28, 2006, Amendment #3 to the
MSA dated as of March 29, 2007 (“Amendment No. 3”), Amendment #4 to
the MSA dated as of April 13, 2008 (“Amendment No. 4”) and Amendment
#5 to the MSA dated as of June 27, 2008 (“Amendment No. 5”)
(collectively, the “Prior Amendments”)

 

WHEREAS,  the parties seek to amend the Agreement to reflect
the terms and conditions under the Agreement and related work orders for the
period of April 1, 2009 to December 31, 2009, subject to the terms of
the Agreement, as amended hereby;

 

NOW
THEREFORE, for valuable consideration, the sufficiency of which is hereby
acknowledged, the parties agree in this Amendment as follows:

 

1.               Capitalized terms used
herein but not defined herein shall have the meanings set forth in the MSA.

 

2.               Section 8.1 of the MSA
is hereby deleted and replaced in its entirety with the following:

 

“This
Agreement will become effective as of the Effective Date and will remain in
effect until December 31, 2009 or until all Services have been completed
or terminated as provided herein, whichever occurs later, unless otherwise
terminated under the provisions of the Agreement.  Metavante may terminate this Agreement or any
Work Order for any reason, upon thirty (30) days prior written notice to
Virtusa, unless otherwise stated in a Work Order with respect to such Work
Order.

 

Virtusa
may terminate this Agreement for any reason upon ninety (90) days prior written
notice to Metavante, provided that no active Work Order is in effect.  “

 

3.               That the resource rates as
set forth in Exhibit A attached hereto [************************]
as set forth in Exhibit B attached hereto shall be in effect
beginning April 1, 2009, and shall apply to all services provided under
any Work Order entered into between Metavante, or an Affiliate of Metavante,
and Virtusa during the period from April 1, 2009 to December 31, 2009
(the “Renewal Period”). The Exhibits A and B attached hereto
replace in their entirety such exhibits in the Agreement as applied to the
Renewal Period.

 

4.               A new Section 10.12 to
the Agreement is hereby added as follows:

 

“Section 10.12                    Privacy of Consumer
Financial Information. If and to the extent Virtusa receives, stores or
accesses any “non-public personal information” as defined in the Privacy of
Consumer Financial Information Rule (12 CFR Part 573) or Section 504
of the Gramm-Leach-Bliley Act, Pub. L. 106-102 (“Privacy Regulations”), as such
regulations may be amended from time to time, or other materials that, in
Metavante’s reasonable

 

1

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

determination, are the
subject of relevant privacy law, rule or regulation , then Virtusa agrees
to comply with the requirements of such applicable law(s), rule(s) and
regulation(s).  In addition to those
obligations set forth elsewhere in this Agreement, as to non-public personal
information received by Virtusa, Virtusa agrees to implement controls and
procedures designed to (1) ensure the security and confidentiality
thereof; (2) protect against any anticipated threats or hazards to the
security or integrity of such records; (3) detect unauthorized access to
or use of such records or information and (4) protect against unauthorized
access to or use of such records or information that would result in harm or
inconvenience to any customer of Metavante (the “Safeguarding Objectives”).  Virtusa represents and agrees that it has and
will maintain in place commercially reasonable precautions to safeguard the
confidentiality, security and integrity of Metavante Data  in a manner designed to meet the Safeguarding
Objectives.  These precautions shall
include (A) contractual restrictions on access to the information by
vendors and contractors, (B) intrusion detection systems on all
information systems of Metavante maintained or controlled by Virtusa, and (C) notification
procedures for notifying Metavante promptly in the event a security breach is
detected or suspected, as well as other response programs when there is a
suspected or detected unauthorized disclosure, access or attempted access of
non-public personal information.  These
precautions shall also include, as appropriate: (i) access controls to
Metavante information systems, including controls to identify and permit access
only to authorized individuals and controls to prevent access to Metavante
Confidential Information through fraudulent means; (ii) employee controls
and training; (iii) physical access restrictions at locations where
Metavante Confidential Information is located; (iv) encryption of
electronic Metavante Confidential Information when appropriate or legally
required; and (v) a disaster recovery plan as appropriate to protect
against loss or damage to Metavante Confidential Information due to potential
hazards such as fire or water damage or technological failures.  Virtusa agrees that it will (i) monitor
the foregoing measures with periodic audits or testing and (ii) provide
copies of the same sufficient to assure to Metavante or its regulatory
authorities that Virtusa is implementing provisions of this Agreement.

 

a.                           Virtusa shall
notify Metavante immediately in the event there is any suspected or actual
unauthorized access, use, disclosure or alteration to Metavante Confidential
Information.

 

5.               Under Section 5.2(2) of
the Agreement (“Indemnity by Virtusa”), “Section 10.12” is hereby added
after the words “Article 3” in such clause in the Agreement.

 

6.               The first sentence
of Section 4.1 of the Agreement is hereby deleted in its entirety and
replaced with the following: “Virtusa shall send invoices to Metavante for the
fee(s) for Services set forth in the Work Order and any related expenses
monthly; provided that all such invoices shall contain a Purchase Order number
and refer to or be issued pursuant to a fully executed Work Order between the
parties.

 

7.               Section 2.4 of the
Agreement is hereby deleted.

 

8.               Section 6.2(11) is
hereby deleted and replaced with the following:

 

“Secure Coding.  Virtusa shall adhere to Metavante’s policy
and coding standards made known to Virtusa, and industry best practices in
software programming to prevent holes or other vulnerabilities in software code
or architecture that might otherwise be exploited by

 

2

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

unauthorized third parties seeking to intrude, penetrate, or hack into
software programs developed hereunder. 
Virtusa shall not program or design into any software programs developed
hereunder any security keys, embedded code or other device which are
specifically designed to prevent Metavante from using any components of the
software.”

 

9.               A new Section 6.2(12)
is hereby added to the Agreement as follows:

 

“6.2(12)  Virtusa will not include in any Deliverable,
which is provided to Metavante under this Agreement, any of its Pre-existing
Virtusa Property including without limitation software or intellectual property
owned by Virtusa , or third party shareware, or Open Source software, without
an authorized Metavante officer’s prior written consent”

 

10.         A new Section 1.13 is
hereby added to the Agreement  as
follows:

 

“1.13 Resource
Quality. 
Virtusa acknowledges that its resources (employees, agents,
or contractors) shall be subject to the continuing approval of Metavante. If at
any time Metavante, in its reasonable judgment and in good faith, determines
that any of the Virtusa resources are inadequate or unsatisfactory, Metavante
shall so advise Virtusa in writing (stating with [**************************************************************]
and, in addition, [****************************************].  If Metavante still requests a Resource
[********************************************], Virtusa shall
[**********************] of such [**********] take action to correct the
situation by removing the resource and, if requested by Metavante, replacing,
within a commercially reasonable of time, the resource with a competent
individual meeting the specific requirements of the assignment and this
Agreement. In addition, if Metavante seeks to terminate any resource for
failure to comply with Metavante rules, regulations, or policies (“For Cause”),
[*******************************************************] shall take action to
correct the situation by removing the resource terminated For Cause.  Failure by Virtusa to remove a resource due
to a Resource Performance Termination [*********************] of written notice
and [******************] between the parties, or failure to remove a resource
For Cause within [**************************] shall be a breach of this
Agreement.  Upon a failure by Virtusa to
remove such resources by the foregoing timeframes, [***********************

********************************************************************]   This Section 1.13 shall not supersede
any requirement for notice of termination for convenience (and shall not
replace the notice of convenience provisions) with respect to any removal of
resources, nor shall this Section 1.13 replace provisions governing
termination of a Work Order for breach or the other termination provisions of
the Agreement (and resource removal terms) or of the applicable Work Orders.

 

3

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

11.         Except as otherwise stated herein, all terms of the
Agreement shall remain in full force and effect.

 

IN
WITNESS WHEREOF, the parties have executed this Amendment to the MSA by their
duly authorized representatives as of the day and year below.

 

	
  METAVANTE CORPORATION

  	
   

  	
  VIRTUSA CORPORATION

  
	
  “Metavante”

  	
   

  	
  “Virtusa”

  
	
   

  	
   

  	
   

  
	
  /s/
  Brian Hurdis

  	
   

  	
  /s/
  Paul D. Tutun

  
	
  Signature

  	
   

  	
  Signature

  
	
  Brian
  Hurdis

  	
   

  	
  Paul
  D. Tutun

  
	
  Name

  	
   

  	
  Name

  
	
  SEVP/CIO

  	
   

  	
  VP &
  General Counsel

  
	
  Title

  	
   

  	
  Title

  
	
  5/22/09

  	
   

  	
  5/27/09

  
	
  Date

  	
   

  	
  Date

  

 

4

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHIBIT A

 

[***]

 

5

 

PORTIONS OF THIS EXHIBIT
WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHBIT B

 

[***]

 

6Filed by sedaredgar.com - Cignus Ventures Inc. - Exhibit 10.2

	CIGNUS VENTURES INC. 
	Suite 410 – 103 East Holly Street, National Bank Building
    
	Bellingham, WA
      98225 

June 29, 2009 

	TO: 	SMARTLINX VOIP NETWORKS PRIVATE LIMITED,
      
	  	Attention: 	Dr. Manohar Loka Reddy and 
	  	  	Chandra Sekhar Pogula 
	  	  	(collectively, the “Principal Shareholders”)
    

Dear Sirs: 

	
      Re: 
	
      Acquisition by Cignus Ventures Inc. (“Cignus”) of
      
Smartlinx VOIP Networks Private Limited (“Smartlinx”)
    

The interim agreement confirms that Cignus wishes to acquire
Smartlinx. The purpose of this interim agreement is to set forth basic terms and
conditions of such a transaction, not to cover all of the issues related to the
transaction. Completion of Cignus’ acquisition of Smartlinx is subject to Cignus
completing due diligence of Smartlinx to its satisfaction. 

	1. 	
      Representations of Smartlinx and the Principal
      Shareholders. Smartlinx and the Principal Shareholders have
      represented to Cignus as follows:

	 	 	 
		(a) 	
      Smartlinx is a company incorporated under the laws of
      India and is in good standing under the laws of its jurisdiction of
      incorporation;

	 	 	 
		(b) 	
      Smartlinx’s authorized capital consists of 1,500,000
      equity shares, with a par value of Rs 10, of which 10,000 equity shares
      are issued and outstanding. There are no other classes of shares or other
      securities of Smartlinx outstanding and no person has any option or right
      to acquire any unissued shares of Smartlinx;

	 	 	 
		(c) 	
      The Principal Shareholders hold 10,000 equity shares
      representing 100% of the issued and outstanding equity shares of
      Smartlinx;

	 	 	 
		(d) 	
      All shares of Smartlinx issued and outstanding have been
      duly and properly issued in compliance with all applicable corporate and
      securities laws;

	 	 	 
		(e) 	
      Smartlinx’s financial statements for the years ended
      December 31, 2008 and 2007 and the period from January 1, 2009 to May 31,
      2009, as set out under Schedule “A”, present fairly the assets,
      liabilities (whether accrued, absolute, contingent or otherwise) and the
      financial condition of Smartlinx

	Cignus Ventures Inc. 
	June 29, 2009 
	 

	 		
      as at the date thereof and there has been no material
      change in the assets and liabilities since that date;

	 	 	 
	 	(f) 	
      Smartlinx is engaged in the business of providing
      Voice-Over Internet Protocol (“VoIP”) services and live, on-line tutoring
      services through its “Live Tutor” website (the “Business”); and

	 	 	 
	 	(g) 	
      Smartlinx owns the technology required for the conduct of
      the Business, including the “Smartlinx” and “Live Tutor” websites and all
      trademarks associated with the “Live Tutor” brand names as set out in
      Schedule “B”.

	2. 	
      Representations of Cignus. Cignus represents as
      follows:

	 	 	 
		(a) 	
      Cignus is a company incorporated under the laws of Nevada
      and is in good standing under the laws of its jurisdiction of
      incorporation;

	 	 	 
		(b) 	
      Cignus is a reporting company under the United States
      Securities Exchange Act of 1934 (the “Act”) and is in good standing with
      respect to its filings under the Act;

	 	 	 
		(c) 	
      Cignus’ authorized capital consists of 100,000,000 shares
      of common stock, with a par value of $0.001 per share, of which 16,000,000
      shares of common stock are issued and outstanding, and 100,000,000 shares
      of preferred stock, with a par value of $0.001 per share, of which none
      are issued and outstanding;

	 	 	 
		(d) 	
      The shares of common stock of Cignus are quoted on the
      FINRA OTC Bulletin Board; and

	 	 	 
		(e) 	
      There has been no material change in the affairs of
      Cignus since its most recent filings in Form 10-K and Form 10-Q under the
      Act, except as may be disclosed in any Form 8-K filed under the
  Act.

	 	 	 
	3. 	
      Stock Split. Cignus agrees to complete a 2.7-for-1
      forward split of its common stock (the “Stock Split”). Upon completion of
      the Stock Split, it is anticipated Cignus’ authorized capital of common
      stock will be increased from 100,000,000 shares, with a par value of
      $0.001 per share, to 270,000,000 shares of common stock, with a par value
      of $0.001 per share, and the issued and outstanding shares of common stock
      will be correspondingly increased from 16,000,000 shares to 43,200,000
      shares of common stock.

	 	 	 
	4. 	
      Purchase of Smartlinx. We have agreed that Cignus
      will acquire all of the issued and outstanding shares of Smartlinx (the
      “Acquisition”). In consideration of Cignus’ acquisition of Smartlinx, the
      principal stockholder of Cignus, David K.

2

	Cignus Ventures Inc. 
	June 29, 2009 
	 

		
      Ryan, will transfer all of his shares, being 27,000,000
      post-split shares (10,000,000 pre-split shares) of Cignus’ common stock,
      to the Principal Shareholders.

	 	 	 
	5. 	
      Loan. Cignus agrees to advance $200,000 to
      Smartlinx upon closing of the acquisition (the “Loan”). Smartlinx agrees
      that the Loan will be due on demand. If the formal agreement is not
      entered into as contemplated under paragraph 7 of this Interim Agreement,
      Smartlinx agrees that the Loan will bear interest at a rate of 6% per
      annum.

	 	 	 
	6. 	
      Conditions. The obligations of the parties to
      complete the Acquisition shall be subject to customary conditions
      including:

	 	 	 
		(a) 	
      All the representatives of the parties shall be true and
      accurate at closing as if they were made immediately prior to
    closing;

	 	 	 
		(b) 	
      Smartlinx shall have provided to Cignus prior to or on
      closing such financial statements as are required by Article 8.01 of
      Regulation S-X of the United States Securities and Exchange Commission in
      order to permit Cignus to make the United States Securities and Exchange
      Commission filings required in respect of the Acquisition; and

	 	 	 
		(c) 	
      Smartlinx shall have provided to Cignus such information
      as is necessary to satisfy Cignus and its counsel that the Acquisition may
      be completed in reliance of exemptions from applicable federal and state
      or foreign securities laws.

	 	 	 
	7. 	
      Formal Agreement. The parties shall take such
      steps as may be necessary and use their best efforts to prepare and
      execute a formal agreement as soon as possible, but in any event not later
      than August 15, 2009. During this period, the parties will cooperate with
      each other and provide such documentation or information as may be
      necessary to permit the parties to complete reasonable due diligence with
      respect to the proposed Acquisition.

	 	 	 
	8. 	
      Full Disclosure. Smartlinx shall disclose to
      Cignus any and all material adverse conditions or potential adverse
      conditions currently known about that could affect the business in a
      negative matter.

	 	 	 
	9. 	
      Exclusivity. In consideration of the undertaking
      by Cignus of the costs and expenses in conducting due diligence and
      continuing negotiations, Smartlinx agrees that, during the term of this
      interim agreement, it will not seek or solicit, or engage anyone to seek
      or solicit, other suitors for a merger or purchase of Smartlinx, will not
      make available to other potential suitors information concerning itself,
      and will maintain confidentiality about the
transaction

3

	Cignus Ventures Inc. 
	June 29, 2009 
	 

		
      contemplated by this interim agreement, except to the
      extent the disclosure is required by applicable law or is made to advisors
      on a “need to know” basis.

	 	 
	10. 	
      Counterparts. This interim agreement may be
      executed in one or more counter- parts, each of which so executed shall
      constitute an original and all of which together shall constitute one and
      the same interim agreement.

If the foregoing is in accordance with your understanding of
the Acquisition, please sign where indicated below and this will serve as an
interim agreement to govern our relationship pending completion of a formal
agreement. 

Yours truly, 

CIGNUS VENTURES INC. 

Per:     /s/ David K. Ryan 

           
David K.
Ryan, 
           
President 

Agreed and accepted as of the 10th day of July,
2009. 

Smartlinx VOIP Networks Private Limited 

	Per: 	   /s/ Dr. Manohar Loka Reddy
    	/s/ Chandra Sekhar Pogula 
	  	  	  
	  	Dr. Manohar Loka Reddy, 	Chandra Sekhar Pogula, 
	  	Director 	Director 

\4416\12-Acq of Live Tutor\Interim
Agreement.v4.doc 

4

SCHEDULE “A” 

Financial Statements for the years ended December 31, 2008
and 2007 
and for the period from January 1, 2009 to May 31, 2009 

of 

Smartlinx VOIP Networks Private Limited 

 

 

1

SMARTLINX VOIPNETWORKS PRIVATE LIMITED

  5-9-22, 3rd
  Floor, My Home Sarovar Plaza, Secretariat Road, Saifabad 

  Hyderabad - 500
  063

BALANCE SHEET (FROM JANUARY 2008 TO DEC-2008) - US
  GAAP

	 	 	 	 	 	 	2008 	 	 	2007 	 
	 	 	 	SCHEDULE 	 	 	Jan08 to Dec08 	 	 	Jan07 to Dec07 	 
	 	 	 	 	 	 	Rupees 	 	 	Rupees 	 
	A	SOURCE OF FUNDS 	 	 	 	 	 	 	 	 	 
	 	Shareholder's Funds 	 	 	 	 	 	 	 	 	 
	 	a) Share Capital 	 	1 	 	 	100000 	 	 	100000 	 
	 	a) Share Application Money Account 	 	 	 	 	6087000 	 	 	0 	 
	 	 	 	 	 	 	 	 	 	 	 
	2	Loan Funds 	 	 	 	 	 	 	 	 	 
	 	a) Secured Loans 	 	2 	 	 	0 	 	 	0 	 
	 	b) Unsecured Loans 	 	3 	 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	TOTAL 	 	 	6187000 	 	 	100000 	 
	B	APPLICATION OF FUNDS 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	1	Fixed Assets 	 	 	 	 	 	 	 	 	 
	 	a) Gross Block 	 	4 	 	 	512575 	 	 	512575 	 
	 	b) Less: Depreciation 	 	 	 	 	105999 	 	 	27457 	 
	 	c) Net Block 	 	 	 	 	406576 	 	 	485118 	 
	 	 	 	 	 	 	 	 	 	 	 
	2	Current Asset, Loans and Advances 	 	 	 	 	 	 	 	 	 
	 	Cash and Bank Balance 	 	5 	 	 	283818 	 	 	267431 	 
	 	Loans & Advances 	 	6 	 	 	378729 	 	 	204289 	 
	 	 	 	 	 	 	662547 	 	 	471720 	 
	 	Less: Current Liabilities & Provisions 	 	 	 	 	 	 	 	 	 
	 	Current Liabilities 	 	7 	 	 	5902 	 	 	4509894 	 
	 	Provisions 	 	8 	 	 	14378 	 	 	55723 	 
	 	 	 	 	 	 	20280 	 	 	4565617 	 
		Net Current Assets 	 	 	 	 	642267 	 	 	(4093896	) 
	 	 	 	 	 	 	 	 	 	 	 
	3	a) Miscellaneous Expenditure 	 	9 	 	 	844420 	 	 	16920 	 
	 	   (to the extent not written off
      or adjusted) 	 	 	 	 	 	 	 	 	 
	 	Profit & Loss Account 	 	 	 	 	4293737 	 	 	3691858 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	TOTAL 	 	 	6187000 	 	 	100000 	 
	 	 	 	 	 	 	 	 	 	 	 

SMARTLINX VOIPNETWORKS PRIVATE LIMITED

  5-9-22, 3rd
  Floor, My Home Sarovar Plaza, Secretariat Road, Saifabad 

  Hyderabad - 500
  063

PROFIT AND LOSS ACCOUNT FOR THE PERIOD FROM JAN-2008 TO
  DEC-2008 (US GAAP)

	

        
	2008 

        Jan08 to Dec08 

        Rupees 
	2007 

        Jan07 to Dec07 

        Rupees 
	Sales Accounts 	 	 	 	 
	     Sales & Services 	 	713930	 	537504
	 	 	 	 	 
	Indirect Expenses 	 	 	 	 
	     Advertisement & Publicity Exp 	0 	 	207085 	 
	     Audit Fee 	11236 	 	0 	 
	     Bank Charges 	1520 	 	1105 	 
	     Business Promotions Exp. 	0 	 	10000 	 
	     Bandwidth Expenses 	0 	 	124189 	 
	     Commission on Voip Resellers 	0 	 	83138 	 
	     Computer Maintenance Exp-A/c 	2450 	 	7336 	 
	     Deferred Revenue Exp.Written
      Off 	39940 	 	0 	 
	     Depreciation 	78542 	 	27457 	 
	     Discount - Voip 	200 	 	99933 	 
	     Electrical Maintenance Exp 	0 	 	11536 	 
	     FBT Account 	11701 	 	1452 	 
	     General Expencess A/c 	110 	 	100 	 
	     Inaguration Expenses 	0 	 	58117 	 
	     Insurance A/c 	3503 	 	0 	 
	     Internet Expenses A/c 	10038 	 	14665 	 
	     Legal & Professional Charges 	15000 	 	44854 	 
	     Local Conveyance Exp 	61436 	 	99537 	 
	     Marketing Expenses 	1800 	 	1120 	 
	     Miscellaneous Exp.Written
      Off 	4230 	 	4230 	 
	     Networking Maintenance Expenses 	11869 	 	28459 	 
	     P.F.Adminstrative Exp. 	5565 	 	8640 	 
	     Postage & Courier A/c 	1645 	 	391 	 
	     Professional Tax 	2500 	 	5000 	 
	     Printing & Stationery 	0 	 	62663 	 
	     Provident Fund 	43996 	 	73060 	 
	     Rates & Taxes Fee 	12475 	 	14168 	 
	     Salaries 	929597 	 	2987741 	 
	     Staff Recruitment & Training Exp A/c 	0 	 	17500 	 
	     Staffwelfare Expenses 	0 	 	4526 	 
	     Telehpone Expenses 	3100.00 	 	22166.00 	 
	     Telephone Expenses (Cell
      Phone) 	59153.00 	 	71813.00 	 
	     Travelling Expenses 	4203 	 	42521 	 
	     Voip Talktime Expense 	0 	 	 	 
	 		1315809 	 	4134501
	Profit & (Loss) A/c 		-601879 		-3596997 

SMARTLINX VOIP NETWORKS PRIVATE LIMITED

  5-9-22, 3rd
  Floor, My Home Sarovar Plaza, Secretariat Road, Saifabad 

  Hyderabad - 500
  063

SCHEDULES TO THE BALANCE SHEET 

	 	 	 	 	 	 	 
	 	 	As at 	 	 	As at 	 
	 	 	2008 	 	 	2007 	 
	 	 	Rs 	 	 	Rs 	 
	SCHEDULE - 1 	 	 	 	 	 	 
	AUTHORIZED CAPITAL: 	 	 	 	 	 	 
	(15,00,000 Equity shares of Rs. 10/- each) 	 	100000 	 	 	100000 	 
	 	 	 	 	 	 	 
	SHARE CAPITAL: 	 	 	 	 	 	 
	Issued, subscribed and paid-up Capital 	 	 	 	 	 	 
	(10,000 Equity Shares of Rs. 10/- each) 	 	100000 	 	 	100000 	 
	 	 	 	 	 	 	 
	SHARE APPLICATION MONEY : 	 	 	 	 	 	 
	Nettlinx Limited 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 
	SCHEDULE - 2 	 	 	 	 	 	 
	SECURED LOANS 	 	 	 	 	 	 
	 	 	0 	 	 	0 	 
	SCHEDULE - 3 	 	 	 	 	 	 
	UNSECURED LOANS 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 
	 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 
	SCHEDULE - 5 	 	 	 	 	 	 
	CASH AND BANK BALANCES 	 	 	 	 	 	 
	Cash in Hand 	 	125332 	 	 	100525 	 
	Bank balance 	 	158486 	 	 	166906 	 
	 	 	2,83,818 	 	 	2,67,431 	 
	 	 	 	 	 	 	 
	SCHEDULE - 6 	 	 	 	 	 	 
	LOANS AND ADVANCES 	 	 	 	 	 	 
	Loans & Advances 	 	132230 	 	 	124897 	 
	Sundry Debtors 	 	243995.52 	 	 	79392 	 
	Prepaid Insurance 	 	2503 	 	 	0 	 
	 	 	378729 	 	 	204289 	 
	 	 	 	 	 	 	 
	SCHEDULE - 7 	 	 	 	 	 	 
	CURRENT LIABILITIES 	 	 	 	 	 	 
	Sundry Creditors & Other payables 	 	57669 	 	 	1312686 	 
	Nettlinx Limited 	 	4247928 	 	 	3197208 	 
	 	 	4305597 	 	 	4509894 	 
	SCHEDULE - 8 	 	 	 	 	 	 
	PROVISIONS 	 	14378 	 	 	55723 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 
	SCHEDULE - 9 	 	 	 	 	 	 
	MISC. EXPENSES 	 	 	 	 	 	 
	Deferred Revenue Expenditure 	 	 	 	 	 	 
	 	 	831730 	 	 	 	 
	Preliminary Expenses 	 	 	 	 	 	 
	 	 	12690 	 	 	16920 	 
	 	 	 	 	 	 	 
	 	 	844420 	 	 	16920 	 

	For SMARTLINX VOIP NETWORKS PRIVATE LIMITED 
	 	 
	 	 
	 	 
	(MANOHAR LOKA REDDY) 	(POGULA CHANDRA SEKHAR) 
	Director 	 
	Place: Hyderabad 	 
	Date : 	 

SMARTLINX VOIPNETWORKS PRIVATE LIMITED

  5-9-22, 3rd
  Floor, My Home Sarovar Plaza, Secretariat Road, Saifabad 

  Hyderabad - 500
  063

BALANCE SHEET (FROM JANUARY 2009 TO MAY 2009) - US
  GAAP

	 	 	 	 	 	 	2009 	 	 	2008 	 
	 	 	 	SCHEDULE 	 	 	Jan09 to May 09 	 	 	Jan08 to Dec08 	 
	 	 	 	 	 	 	Rupees 	 	 	Rupees 	 
	A	SOURCE OF FUNDS 	 	 	 	 	 	 	 	 	 
	1	Shareholder's Funds 	 	 	 	 	 	 	 	 	 
	 	a) Share Capital 	 	1 	 	 	100000 	 	 	100000 	 
	 	a) Share Application Money Account 	 	 	 	 	7179000 	 	 	6087000 	 
	 	 	 	 	 	 	 	 	 	 	 
	2	Loan Funds 	 	 	 	 	 	 	 	 	 
	 	a) Secured Loans 	 	2 	 	 	0 	 	 	0 	 
	 	b) Unsecured Loans 	 	3 	 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	TOTAL 	 	 	7279000 	 	 	6187000 	 
	B	APPLICATION OF FUNDS 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	1	Fixed Assets 	 	 	 	 	 	 	 	 	 
	 	a) Gross Block 	 	4 	 	 	687511 	 	 	512575 	 
	 	b) Less: Depreciation 	 	 	 	 	146680 	 	 	105999 	 
	 	c) Net Block 	 	 	 	 	540831 	 	 	406576 	 
	 	 	 	 	 	 	 	 	 	 	 
	2	Current Asset, Loans and Advances 	 	 	 	 	 	 	 	 	 
	 	Cash and Bank Balance 	 	5 	 	 	220535 	 	 	283818 	 
	 	Loans & Advances 	 	6 	 	 	1863374 	 	 	378729 	 
	 	 	 	 	 	 	2083908 	 	 	662547 	 
		Less: Current Liabilities & Provisions 	 	 	 	 	 	 	 	 	 
	 	Current Liabilities 	 	7 	 	 	721586 	 	 	5902 	 
	 	Provisions 	 	8 	 	 	16196 	 	 	14378 	 
	 	 	 	 	 	 	737782 	 	 	20280 	 
	 	Net Current Assets 	 	 	 	 	1346126 	 	 	642267 	 
	 	 	 	 	 	 	 	 	 	 	 
	3	a) Miscellaneous Expenditure 	 	9 	 	 	1248045 	 	 	844420 	 
	 	   (to the extent not written off
      or adjusted) 	 	 	 	 	 	 	 	 	 
	 	Profit & Loss Account 	 	 	 	 	4143998 	 	 	4293737 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	TOTAL 	 	 	7279000 	 	 	6187000 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	0 	 	 	0 	 

SMARTLINX VOIPNETWORKS PRIVATE LIMITED

  5-9-22, 3rd
  Floor, My Home Sarovar Plaza, Secretariat Road, Saifabad 

  Hyderabad - 500
  063

PROFIT AND LOSS ACCOUNT FOR THE PERIOD FROM JAN-2009 TO
  MAY-2009 (US GAAP) SEGMENT WISE

	 	 VOIP
      SERVICES 	LIVE
      TUTOR SERVICES 	 
	

        
	2009 

        Jan09 to May 09 

        Rupees 
	2009 

        Jan09 to May 09 

        Rupees 
	

        

	Sales Accounts 	 	 	 	 	 
	       Sales & Services 		1185684 		0	 
	 	 	 	 	 	 
	Indirect Expenses 	 	 	 	 	 
	       Advertisement &
      Publicity Exp 	0.00 	 	3062 	 	 
	       Bank Charges 	33388.17 	 	 	 	 
	       Business Promotions
      Exp. 	0.00 	 	19000 	 	 
	       Computer Maintenance Exp-A/c 	0.00 	 	170 	 	 
	       Deferred Revenue
      Exp.Written Off 	93335.00 	 	 	 	 
	       Depreciation 	40681.00 	 	 	 	 
	       General Expencess
      A/c 	850.00 	 	22834 	 	 
	       Internet Expenses A/c 	1923.00 	 	 	 	 
	       Legal & Professional
      Charges 	5000.00 	 	35946 	 	 
	       Local Conveyance Exp 	57727.00 	 	1000 	 	 
	       Miscellaneous Exp.Written
      Off 	2115.00 	 	 	 	 
	       Office Maintenance 	0.00 	 	10203 	 	 
	       P.F.Adminstrative
      Exp. 	2359.00 	 	 	 	 
	       Pooja Expenses 	0.00 	 	501 	 	 
	       Postage & Courier
      A/c 	255.00 	 	 	 	 
	       Printing & Stationery 	0.00 	 	197109 	 	 
	       Provident Fund 	11709.35 	 	5879 	 	 
	       Rates & Taxes Fee 	644.00 	 	9900 	 	 
	       Salaries 	646263.81 	 	194093 	 	 
	       Staffwelfare Expenses 	7001.00 	 	592 	 	 
	       Telehpone Expenses 	3598.00 	 	9985 	 	 
	       Telephone Expenses (Cell Phone) 	9477.00 	 	16216 	 	 
	       Travelling Expenses 	19803.00 	 	68620.00 	 	 
	       Tutors Fess 	0.00 	 	3780.00 	 	 
	 	 	 	 	 	 
	 	 	936129	 		 
	       Deferred Revenue
      Expenditure Total 	 	 		598890 	 
	 	 	 	 	 	 
	       Deferred Revenue
      Exp.Written Off 	 	 		99815 	 
	 	 	 	 	 	 
	Profit & (Loss) A/c 		249555 		-99815 	149740 

SMARTLINX VOIPNETWORKS PRIVATE LIMITED

  5-9-22, 3rd
  Floor, My Home Sarovar Plaza, Secretariat Road, Saifabad 

  Hyderabad - 500
  063

PROFIT AND LOSS ACCOUNT FOR THE PERIOD FROM JAN-2009 TO
  MAY-2009 (US GAAP)

  	

          
	2009 

          Jan09 to May 09 

          Rupees 	2008 

          Jan08 to Dec08 

          Rupees 
	Sales Accounts 	 	 	 	 
	     Sales & Services 	 	1185684 	 	713930 
	 	 	 	 	 
	Indirect Expenses 	 	 	 	 
	     Audit Fee 	0.00 	 	11236 	 
	     Bank Charges 	33388.17 	 	1520 	 
	     Computer Maintenance Exp-A/c 	0.00 	 	2450 	 
	     Deferred Revenue Exp.Written Off 	193150.00 	 	39940 	 
	     Depreciation 	40681.00 	 	78542 	 
	     Discount - Voip 	0.00 	 	200 	 
	     FBT Account 	0.00 	 	11701 	 
	     General Expencess A/c 	850.00 	 	110 	 
	     Insurance A/c 	0.00 	 	3503 	 
	     Internet Expenses A/c 	1923.00 	 	10038 	 
	     Legal & Professional
        Charges 	5000.00 	 	15000 	 
	     Local Conveyance Exp 	57727.00 	 	61436 	 
	     Marketing Expenses 	0.00 	 	1800 	 
	     Miscellaneous Exp.Written Off 	2115.00 	 	4230 	 
	     Networking Maintenance Expenses 	0.00 	 	11869 	 
	     P.F.Adminstrative Exp. 	2359.00 	 	5565 	 
	     Postage & Courier A/c 	255.00 	 	1645 	 
	     Professional Tax 	0.00 	 	2500 	 
	     Provident Fund 	11709.35 	 	43996 	 
	     Rates & Taxes Fee 	644.00 	 	12475 	 
	     Salaries 	646263.81 	 	929597 	 
	     Staffwelfare Expenses 	7001.00 	 	0 	 
	     Telehpone Expenses 	3598.00 	 	3100.00 	 
	     Telephone Expenses (Cell Phone) 	9477.00 	 	59153.00 	 
	     Travelling Expenses 	19803.00 	1035944 	4203 	1315809 
	 	 	 	 	 
	Profit & (Loss) A/c 	 	149740 	 	-601879 

SMARTLINX VOIP NETWORKS PRIVATE LIMITED

  5-9-22, 3rd
  Floor, My Home Sarovar Plaza, Secretariat Road, Saifabad 

  Hyderabad - 500
  063

SCHEDULES TO THE BALANCE SHEET 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	As at 	 	 	As at 	 
	 	 	 	 	 	31st March 2009 	 	 	31st March 2008 	 
	 	 	 	 	 	Rs 	 	 	Rs 	 
	SCHEDULE - 1 	 	 	 	 	 	 	 	 	 
	AUTHORIZED CAPITAL: 	 	 	 	 	 	 	 	 	 
	(15,00,000 Equity shares of Rs. 10/- each) 	 	 	 	 	15000000 	 	 	100000 	 
	 	 	 	 	 	 	 	 	 	 
	SHARE CAPITAL: 	 	 	 	 	 	 	 	 	 
	Issued, subscribed and paid-up Capital 	 	 	 	 	 	 	 	 	 
	(10,000 Equity Shares of Rs. 10/- each) 	 	 	 	 	100000 	 	 	100000 	 
	 	 	 	 	 	 	 	 	 	 
	SHARE APPLICATION MONEY : 	 	 	 	 	 	 	 	 	 
	Nettlinx Limited 	 	 	 	 	7179000 	 	 	0 	 
	 	 	 	 	 	 	 	 	 	 
	SCHEDULE - 2 	 	 	 	 	 	 	 	 	 
	SECURED LOANS 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	0 	 	 	0 	 
	SCHEDULE - 3 	 	 	 	 	 	 	 	 	 
	UNSECURED LOANS 	 	 	 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 	 	 	 
	SCHEDULE - 5 	 	 	 	 	 	 	 	 	 
	CASH AND BANK BALANCES 	 	 	 	 	 	 	 	 	 
	Cash in Hand 	 	 	 	 	120730 	 	 	125332 	 
	Bank balance 	 	 	 	 	99805 	 	 	158486 	 
	 	 	 	 	 	2,20,535 	 	 	2,83,818 	 
	 	 	 	 	 	 	 	 	 	 
	SCHEDULE - 6 	 	 	 	 	 	 	 	 	 
	LOANS AND ADVANCES 	 	 	 	 	 	 	 	 	 
	Loans & Advances 	 	 	 	 	638564 	 	 	132230 	 
	Sundry Debtors 	 	 	 	 	1222307 	 	 	243995.52 	 
	Prepaid Insurance 	 	 	 	 	2503 	 	 	2503 	 
	 	 	 	 	 	1863374 	 	 	378729 	 
	 	 	 	 	 	 	 	 	 	 
	SCHEDULE - 7 	 	 	 	 	 	 	 	 	 
	CURRENT LIABILITIES 	 	 	 	 	 	 	 	 	 
	Sundry Creditors & Other payables 	 	 	 	 	107153 	 	 	57669 	 
	Sundry debtors Cr balances 	 	 	 	 	0 	 	 	0 	 
	Nettlinx Limited 	 	 	 	 	614433 	 	 	4247928 	 
	 	 	 	 	 	721586 	 	 	4305597 	 
	SCHEDULE - 8 	 	 	 	 	 	 	 	 	 
	PROVISIONS 	 	 	 	 	16196 	 	 	14378 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	0 	 	 	0 	 
	 	 	 	 	 	 	 	 	 	 
	SCHEDULE - 9 	 	 	 	 	 	 	 	 	 
	MISC. EXPENSES 	 	 	 	 	 	 	 	 	 
	Deferred Revenue Expenditure 	 	12690.00 	 	 	 	 	 	 	 
	Less: Deferred Revenue Exp.Written
      Off 	 	-2115.00 	 	 	10575.00 	 	 	831730 	 
	Preliminary Expenses 	 	1430620.00 	 	 	 	 	 	 	 
	Less: Written off 	 	-193150.00 	 	 	1237470.00 	 	 	12690 	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	1248045 	 	 	844420 	 

	For SMARTLINX VOIP NETWORKS PRIVATE LIMITED 
	 	 
	 	 
	 	 
	(MANOHAR LOKA REDDY) 	(POGULA CHANDRA SEKHAR) 
	Director 	 
	Place: Hyderabad 	 
	Date : 	 

SCHEDULE “B” 

Trademark Applications of Smartlinx 

	Trade Mark
      Application 	Jurisdiction(s) 	Application Number 
	Live Tutor 	India 	1745989 

 

Websites of Smartlinx 

	Website
      Address 
	http://smartlinx.co.in 
	http://bsnl.livetutor.in 

1

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