Document:

Exhibit 10.1

EXHIBIT 10.1

FIRST AMENDMENT TO

EXECUTIVE EMPLOYMENT AGREEMENT

This First Amendment to Executive Employment Agreement (the “Amendment”) is made as of this 17th day of
March, 2010 by and among COMM BANCORP INC., a Pennsylvania business corporation (“Comm Bancorp”), COMMUNITY BANK AND
TRUST COMPANY, a Pennsylvania state-chartered banking institution (the “Bank”) and SCOTT A. SEASOCK, an adult
individual and resident of the Commonwealth of Pennsylvania (“Executive”) to amend that certain Executive Employment
Agreement dated July 1, 2001 by and among Comm Bancorp, the Bank and the Executive (the “Executive Agreement”).

WITNESSETH:

WHEREAS, Comm Bancorp and the Bank each desire the Executive to continue to serve as its Executive Vice President
and Chief Financial Officer under the terms and conditions of the Executive Agreement but as amended hereby; and

WHEREAS, the Executive desires to continue to serve Comm Bancorp and the Bank in an executive capacity under the
terms and conditions set forth in the Executive Agreement but as amended hereby.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and intending to be
legally bound hereby, the parties agree as follows:

1. Amendments. The Executive Agreement is hereby amended as follows:

A. Paragraph 1 entitled “Term of Employment” shall be deleted in its entirety and the following new paragraph
substituted in its place:

TERM OF EMPLOYMENT. Comm Bancorp and the Bank each employ the Executive and the Executive
accepts employment with them for an initial period of three (3) years beginning on the 17th day of
March 2010, and ending on the 16th day of March, 2013 subject, however, to one-year automatic
extensions at the end of each one (1) year period so that this Agreement “evergreens” so as to have a
constant three (3) year term as of the end of each contract year unless either Comm Bancorp, the Bank or
Executive gives the other written notice at least six (6) months prior to the expiration of the then current
contract year of their intention not to extend this Agreement (subject to Paragraph 10 hereof), and also
subject to prior termination of this Agreement as set forth below.

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B. Subparagraph 4.A.1. entitled “Annual Salary” shall be deleted in its entirety and the following new paragraph
substituted in its place:

ANNUAL SALARY. As compensation for services rendered under this Agreement, the Executive shall
be entitled to receive an annual salary of $155,000.00 per year, payable in substantially equal bimonthly
installments (or such other more frequent intervals as may be determined by the Board of Directors as payroll
policy for senior executive officers) prorated for any partial employment period. The annual salary shall be
reviewed by the Board of Directors prior to each calendar year of this Agreement beginning January 1, 2011
and shall be adjusted based on performance, but no less than the latest annual Northeast Region Consumer
Price Index percentage rate. The increase in annual salary shall be communicated to the Executive on or
before February 28th and shall be effective as of January 1 of each year. In no event shall the annual salary
be decreased.

C. Subparagraph 5.A. entitled “Employee Benefit Plan” shall be deleted in its entirety and the following new
paragraph substituted in its place:

EMPLOYEE FRINGE BENEFITS. The Executive shall be entitled to participate in and to receive
benefits under all employee benefit plans (e.g. matching 401-K plan, health insurance, salary continuation
plan, supplemental retirement plan, split-dollar life insurance plan) provided to other executive level
employees of either Comm Bancorp or the Bank, but it is not the parties intention to create duplicate
entitlements. The Executive may select which plan in which to participate if duplicate plans are available.
Comm Bancorp and the Bank agree to provide the Executive with traditional Blue Cross/Blue Shield health
insurance coverage for the Executive, his wife and minor children at Comm Bancorp and the Bank’s sole
expense.

D. The paragraph 9.B. entitled “Disability” shall be deleted in its entirety and the following paragraph
submitted in its place:

DISABILITY. Disability shall mean 1) the Executive is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than 12 months or 2) the
Executive is, by reason of any medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less than 12 months, receiving
income replacement benefits for a period of not less than three months under an accident and health plan
covering employees of the Bank.

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E. Paragraph 9.D. entitled “Health and Good Reason” shall be deleted in its entirety and the following paragraph
submitted in its place:

HEALTH AND GOOD REASON. The Executive may terminate his employment hereunder (1) if he becomes
subject to a disability as defined in paragraph 9.B. or (2) for Good Reason. The term “Good Reason” shall
mean (i) any assignment to the Executive, without his consent, of any duties other than those specifically
contemplated by paragraph 2 hereof, (ii) any removal of the Executive from or any failure to re-elect the
Executive to any of the positions indicated in paragraph 2 hereof, except in connection with termination of
the Executive’s employment for Cause, (iii) failure of either Comm Bancorp or the Bank, as the case may be,
to comply with paragraph 5 hereof, and (iv) any other material breach of either Comm Bancorp or the Bank of
this Agreement.

Executive shall within ninety (90) days of the occurrence of any of the foregoing events constituting
Good Reason, provide notice to Comm Bancorp and the Bank of the existence of the condition and provide Comm
Bancorp and the Bank thirty (30) days in which to cure such condition. In the event that Comm Bancorp and
Bank do not cure the condition within thirty (30) days of such notice, Executive may resign from employment
and give notice in writing to Comm Bancorp and the Bank and the provisions of paragraph 10.B. of this
Agreement shall apply.

F. A new paragraph 9.E. shall be added as follows:

CHANGE OF CONTROL. Within two years of a change of control as defined in paragraph 11,
Executive may terminate employment and collect benefits under paragraph 10.B.

G. Paragraph 10 entitled “Payments upon Termination/Non-Extension” shall be deleted in its entirety and the
following new paragraph substituted in its place:

PAYMENTS UPON TERMINATION/NON-EXTENSION

A. FOR CAUSE. If the Executive’s employment shall be terminated for Cause pursuant to
paragraph 9.C., Comm Bancorp and the Bank shall pay the Executive his full Annual Salary through
the date of termination at the rate in effect at the time of termination (e.g. reimbursements and
the value of his accrued but unused fringe benefits), and neither Comm Bancorp nor the Bank shall
have further obligations to the Executive under this Agreement, except Executive shall receive all
other vested employee benefits to which Executive may be entitled when due and payable.

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B. UNILATERAL, DEATH, DISABILITY AND GOOD REASON TERMINATION. If the Executive’s
employment by either Comm Bancorp or the Bank is terminated (other than pursuant to paragraph 9.C),
or if the Executive shall terminate his employment for Good Reason or if the Executive’s employment
shall be terminated because of death or disability, then Comm Bancorp and the Bank shall pay the
Executive (or his estate in the case of death) within thirty (30) days of such termination date,
the lump sum equivalent (without discounting for present value) of thirty-six (36) months of his
full Annual Salary, plus any other amounts owing to Executive at the time of termination (e.g.
reimbursements and the value of his accrued but unused fringe benefits), including benefits payable
under paragraph 5. The parties agree that Comm Bancorp and the Bank may fund these obligations
through the purchase of appropriate insurance policies; in which case, the payment to the Executive
or his estate, as the case may be, shall be at the time of the receipt of the applicable insurance
policy proceeds by Comm Bancorp or the Bank, as the case may be.

If Executive terminates his employment as a result of a Change of Control under Paragraph 9.E
or if Executive’s employment is terminated by the successor in interest as a result of a change of
control, then the Bank and Comm Bancorp shall pay to the Executive, the Executive’s Annual Salary
for thirty six (36) months from the date of termination. In addition, the Bank and Comm Bancorp
shall continue to provide long-term disability and medical benefits throughout such period of time
that a payment is made under this sub-paragraph 10.B. In the event that Comm Bancorp and the Bank
are unable to continue to provide such benefits because the Executive is no longer an employee,
then Comm Bancorp and the Bank shall provide the Executive a payment in an amount necessary to
reimburse Executive for the monthly payments made by him to obtain substantially similar benefits.
Executive shall receive all other vested employee benefits to which Executive may be entitled when
due and payable. All other employee fringe benefits shall cease under the terms provided in the
respective plans.

C. NON-EXTENSION OF AGREEMENT. In the event Comm Bancorp and/or the Bank gives
written notice that this Agreement will not be renewed, the Executive shall be entitled at his sole
option and discretion to terminate his employment and shall thereupon receive a severance payment
equivalent to thirty-six (36) months of his then current Annual Salary plus such vested employee
benefits to which Executive may be entitled when due and payable, and neither Comm Bancorp nor the
Bank shall have further obligations to the Executive under this Agreement

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D. MAXIMUM SEVERANCE PAYMENT. Notwithstanding any provision set forth to the
contrary, Comm Bancorp and the Bank shall in no case be liable to Executive for any amount in
excess of thirty-six (36) months of Executive’s Annual Salary plus such benefits as listed in
paragraphs 10.B or 10.C, and the same shall represent the maximum severance payment or benefit to
Executive for termination under paragraphs 10.B and 10.C above.

H. A new paragraph 10.E. shall be added as follows:

SPECIFIED EMPLOYEE. If when the Executive’s employment terminates, the Executive is a
“specified employee,” as defined in Code Section 409A(a)(2)(B)(i), then despite any provision of this
Agreement or other plan or agreement to the contrary, the Executive will not be entitled to the payments
until the earliest of: (a) the date that is at least six months after the Executive’s separation from service
(within the meaning of Code Section 409A) for reasons other than the Executive’s death, (b) the date of the
Executive’s death, or (c) any earlier date that does not result in additional tax or interest to the
Executive under Code Section 409A. As promptly as possible after the end of the period during which payments
are delayed under this provision, the entire amount of the delayed payments shall be paid to the Executive in
a single lump sum with any remaining payments to commence in accordance with the terms of this Agreement or
other applicable plan or agreement.

2. REAFFIRMATION OF EXECUTIVE AGREEMENT. All of the other terms and conditions of the Executive Agreement
remain unchanged and are hereby ratified and affirmed by the Bank and the Executive except to the extent that they may
be inconsistent with this Amendment. When this Amendment is executed by the parties hereto, it shall become part of
the Executive Agreement and shall have the same force and effect as if the terms and conditions hereof were originally
incorporated into the Executive Agreement.

3. GOVERNING LAW. This Agreement and the rights and obligations hereunder shall be governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania and the United States of America

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IN WITNESS WHEREOF, the parties have signed and sealed this Agreement the day and the year first above written.

ATTEST:

COMM BANCORP, INC.

/s/ John P. Kameen

By: /s/ William F. Farber, Sr.

William F. Farber, Sr., Chairman, President

Title:

and Chief Executive Officer

ATTEST:

COMMUNITY BANK & TRUST COMPANY

/s/ John P. Kameen

By: /s/ William F. Farber, Sr.

William F. Farber, Sr., Chairman, President

Title:

and Chief Executive Officer

WITNESS

EXECUTIVE

/s/ John P. Kameen

/s/ Scott A. Seasock

Scott A. Seasock

6

6exv10w60

Exhibit 10.60

EXECUTION VERSION

 

SERVICES AGREEMENT

by and among

TRIAD GUARANTY INC.,

TRIAD GUARANTY INSURANCE CORPORATION

and

ESSENT GUARANTY, INC.

 

December 1, 2009

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II SERVICES
	 	 	10	 
	2.1. Description of Services
	 	 	10	 
	2.2. Special Services
	 	 	13	 
	2.3. Service Administration
	 	 	15	 
	2.4. Payment for Services By Affiliates and Third Party Vendors
	 	 	15	 
	2.5. Performance by Company
	 	 	15	 
	2.6. Cooperation of Triad
	 	 	15	 
	2.7. Services Not to Be Withheld
	 	 	16	 
	2.8. Reduction or Early Termination of Technology Development
Services
	 	 	16	 
	2.9. Services at Triad’s Option
	 	 	17	 
	2.10. Obligations of Triad
	 	 	17	 
	2.11. Compliance with Legal Requirements
	 	 	18	 
	2.12. No Additional Resources
	 	 	18	 
	2.13. General Savings Clause
	 	 	19	 
	 
	 	 	 	 
	ARTICLE III SCOPE OF SERVICES; CHANGE PROCESS
	 	 	19	 
	3.1. General Scope
	 	 	19	 
	3.2. Maintenance Windows
	 	 	20	 
	3.3. Changes in Scope
	 	 	20	 
	 
	 	 	 	 
	ARTICLE IV LICENSE GRANTS
	 	 	21	 
	4.1. License Grant
	 	 	21	 
	4.2. Subcontractors
	 	 	22	 
	4.3. Escrow
	 	 	22	 
	4.4. No Waiver
	 	 	24	 
	 
	 	 	 	 
	ARTICLE V FEES AND PAYMENT FOR SERVICES
	 	 	24	 
	5.1. Service Fees
	 	 	24	 
	5.2. Ongoing Maintenance Fees and Support Services Charges
	 	 	25	 
	5.3. Allocation of Charges
	 	 	25	 
	5.4. Adjustments to Annual Services Costs
	 	 	25	 
	5.5. Invoices and Payment
	 	 	26	 
	5.6. Invoices
	 	 	26	 
	5.7. Tax Matters
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VI SERVICE LEVEL STANDARDS; COMMITMENTS
	 	 	27	 
	6.1. General
	 	 	27	 
	6.2. Uptime
	 	 	27	 
	6.3. Failure to Meet Service Levels; Categorization of Service Level
Failures
	 	 	29	 

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	 	 	Page
	6.4. Service Credit Limits; Carry-Forward
	 	 	31	 
	6.5. Service Grace Period
	 	 	32	 
	6.6. Failure to Resolve Failure
	 	 	32	 
	6.7. Reporting
	 	 	32	 
	6.8. Audit Review Rights
	 	 	33	 
	6.9. Customer Service Business Review Rights
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VII PERSONNEL; SECURITY
	 	 	33	 
	7.1. Personnel
	 	 	33	 
	7.2. Policies and Procedures
	 	 	34	 
	7.3. Resources
	 	 	34	 
	7.4. On-Site Performance Obligations
	 	 	34	 
	7.5. Mutual Performance Obligations
	 	 	35	 
	7.6. Suspected Breaches
	 	 	35	 
	7.7. IT Security Penetration Audits and Analysis
	 	 	36	 
	7.8. Training
	 	 	36	 
	 
	 	 	 	 
	ARTICLE VIII SUBCONTRACTORS
	 	 	37	 
	8.1. Subcontractors
	 	 	37	 
	8.2. Subcontractor Payments
	 	 	37	 
	 
	 	 	 	 
	ARTICLE IX TERM
	 	 	37	 
	9.1. Term
	 	 	37	 
	 
	 	 	 	 
	ARTICLE X TERMINATION; EFFECT OF TERMINATION
	 	 	37	 
	10.1. Termination of Agreement
	 	 	38	 
	10.2. Effect of Termination
	 	 	38	 
	10.3. Transfer Assistance
	 	 	39	 
	10.4. Equitable Remedies
	 	 	41	 
	10.5. Survival
	 	 	41	 
	 
	 	 	 	 
	ARTICLE XI INDEMNIFICATION; LIMITATION OF REMEDIES
	 	 	41	 
	11.1. Indemnification of Company by Triad
	 	 	41	 
	11.2. Indemnification of Triad
	 	 	41	 
	11.3. Defense of Claims
	 	 	41	 
	11.4. Mitigation
	 	 	43	 
	11.5. LIMITATION OF REMEDIES; DISCLAIMER OF
CONSEQUENTIAL DAMAGES
	 	 	43	 
	 
	 	 	 	 
	ARTICLE XII RECORDS; ACCESS
	 	 	43	 
	12.1. Records
	 	 	43	 
	12.2. Access to Books, Records, Personnel
	 	 	44	 
	 
	 	 	 	 
	ARTICLE XIII GOVERNANCE AND DISPUTE RESOLUTION
	 	 	44	 
	13.1. Steering Committee
	 	 	44	 
	13.2. General Communications Regarding Services
	 	 	44	 
	13.3. Initial Resolution of Disputes
	 	 	45	 

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	 	 	Page
	13.4. Escalation
	 	 	45	 
	13.5. Arbitration
	 	 	46	 
	 
	 	 	 	 
	ARTICLE XIV INSURANCE
	 	 	47	 
	14.1. Coverage
	 	 	47	 
	14.2. Rating
	 	 	47	 
	14.3. Subrogation
	 	 	47	 
	14.4. Indemnification
	 	 	47	 
	 
	 	 	 	 
	ARTICLE XV MISCELLANEOUS
	 	 	48	 
	15.1. Notices
	 	 	48	 
	15.2. Assignments, Successors and No Third Party Rights
	 	 	49	 
	15.3. Force Majeure
	 	 	49	 
	15.4. Amendments and Waivers
	 	 	49	 
	15.5. Headings and Captions
	 	 	50	 
	15.6. Entire Agreement
	 	 	50	 
	15.7. Counterparts; Facsimile
	 	 	50	 
	15.8. Governing Law
	 	 	50	 
	15.9. Further Assurances
	 	 	50	 
	15.10. Severability
	 	 	51	 
	15.11. Independent Contractor
	 	 	51	 
	15.12. Confidentiality
	 	 	51	 

Schedule A — Licensed Technology and Equipment/Information and Maintenance Services; Customer Services

Schedule B — Intentionally Omitted

Schedule C — Technology Development Services

Schedule D — Initial Development Projects

Schedule E — Initial Level 1 Contacts and Initial Level 2 Contacts

Exhibit A — Technology Escrow Agreement

Exhibit B — Form of License Agreement

Exhibit C — Disaster Recovery Manual

Exhibit D — Annual Escrow Testing Process

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SERVICES AGREEMENT

     This Services Agreement (this “Agreement”), dated as of December 1, 2009 (the
“Effective Date”), is by and among Triad Guaranty Inc., a Delaware corporation
(“TGI”), Triad Guaranty Insurance Corporation, an Illinois domiciled insurance company
(“TGIC” and together with TGI referred to as “Triad”), and Essent Guaranty, Inc., a
Pennsylvania stock insurance company (“Company”).

RECITALS

     WHEREAS, TGI, TGIC and Company have entered into (a) an Asset Purchase Agreement dated October
7, 2009 (the “Purchase Agreement”), pursuant to which Company has agreed to acquire certain
assets of Triad in exchange for payment of certain consideration as specified in the Purchase
Agreement; (b) the Technology Escrow Agreement of even date herewith and attached hereto as Exhibit
A with the Escrow Agent (defined below) (the “Technology Escrow Agreement”), pursuant to
which Triad and Company will place in a Third Party technology escrow the object code, source code
and documentation relating to the Licensed Software (as defined herein), for Triad’s benefit,
pursuant to the terms hereof; and (c) a Sublease Agreement of even date herewith, pursuant to which
Company has subleased a portion of Triad’s offices at 101 South Stratford Road, Winston-Salem,
North Carolina (such agreements are collectively referred to as the “Transaction
Agreements” and the transactions and other matters contemplated hereby and thereby are
collectively referred to as the “Transaction”); and

     WHEREAS, after the Closing of the Transaction, Company will have employees with expertise and
capabilities to provide the Services described herein and in the attached Schedules; and

     WHEREAS, in connection with the Transaction and as a condition to Closing under the Purchase
Agreement, Triad and Company (each, a “Party” and collectively, the “Parties”) have
agreed to enter into this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the
sufficiency of which is acknowledged, the Parties hereby agree as follows.

ARTICLE I

DEFINITIONS

     Capitalized terms used in this Agreement (including its Schedules) have the meanings set forth
below or elsewhere either in this Agreement or in the Purchase Agreement.

     “Affiliate” and the related term “Control” have the meanings ascribed to them
in the Purchase Agreement.

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     “Agreement” means this Services Agreement, together with the Schedules and Exhibits
attached hereto and made a part hereof.

     “Annual Service Cost” means, (a) on and after the first anniversary of the Effective
Date until the second anniversary of the Effective Date, $17.00 adjusted upward or downward on such
first anniversary of the Effective Date: (i) for the year over year percentage change in CPI
(using, for such adjustment purposes, the most recent month for which CPI data are available on the
first anniversary of the Effective Date compared with data for one year prior to such month), and
(ii) pursuant to Article V; and (b) on and after the second anniversary of the Effective Date, the
Annual Service Cost from the immediately preceding twelve (12) months (without regard to
adjustments pursuant to part (ii) of clause (a) or (b) of this definition (as applicable)) as
adjusted upward or downward: (i) for the year over year percentage change in CPI (using, for such
adjustment purposes, the most recent month for which CPI data are available on the anniversary
compared with data for one year prior to such month), and (ii) pursuant to Article V.

     “Annual Technology Development Cost” means, (a) on and after the first anniversary of
the Effective Date until the second anniversary of the Effective Date, $4.25 adjusted upward or
downward on such first anniversary of the Effective Date: (i) for the year over year percentage
change in CPI (using, for such adjustment purposes, the most recent month for which CPI data are
available on the first anniversary of the Effective Date compared with data for one year prior to
such month), and (ii) pursuant to Article V; and (b) on and after the second anniversary of the
Effective Date, the Annual Technology Development Cost from the immediately preceding twelve (12)
months (without regard to adjustments pursuant to part (ii) of clause (a) or (b) of this definition
(as applicable)) as adjusted upward or downward: (i) for the year over year percentage change in
CPI (using, for such adjustment purposes, the most recent month for which CPI data are available on
the anniversary compared with data for one year prior to such month), and (ii) pursuant to Article
V.

     “Applicable Law” means any and all applicable laws, rules, regulations, administrative
orders (including any Corrective Orders) and interpretive guidance of a Governmental Body.

     “Base Services” has the meaning set forth in Section 2.1(a).

     “Broad Failure” has the meaning set forth in Section 6.3(c).

     “Business Hours” has the meaning set forth in Section 6.1.

     “Change Order” has the meaning set forth in Section 3.3(b).

     “Chronic Failure” has the meaning set forth in Section 6.3(c).

     “Claim” has the meaning set forth in Section 11.3.

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     “Claim Notice” has the meaning set forth in Section 11.3.

     “Closing” has the meaning ascribed to it in the Purchase Agreement.

     “Closing Date” has the meaning ascribed to it in the Purchase Agreement.

     “Committee” has the meaning set forth in Section 13.1.

     “Company” has the meaning set forth in the preamble hereto.

     “Company Indemnified Parties” has the meaning set forth in Section 11.1.

     “Company Intellectual Property” means the Intellectual Property of Company, whether
acquired from Triad pursuant to the Purchase Agreement or developed by Company prior to or
following the Closing Date.

     “Company Personnel” means Company’s personnel, employees, agents, representatives,
approved subcontractors and invitees.

     “Company
Third Party” has the meaning set forth in Section 8.2.

     “Confidential Information” has the meaning set forth in Section 15.12.

     “Core Applications” means the systems, applications and equipment comprising the
following components of the Triad Technology Platform (which is part of the Purchased Assets):
e-mail, MINT, TAXI servicing, EZ Scan-QA, Intranet access and Internet access.

     “Corrective Orders” means the two corrective orders dated August 5, 2008 and March 31,
2009 that govern numerous matters related to the conduct of TGIC’s business in run-off, including
restrictions on its ongoing operations, and any other corrective order issued by the Department
with respect to TGIC after the Effective Date.

     “CPI” means the Consumer Price Index (U.S. Cities Avg. All Urban Consumers, All Items,
Non-Seasonally Adjusted 1982-1984 = 100), published by the United States Department of Labor,
Bureau of Labor Statistics. If the U.S. federal government revises or ceases to publish the CPI,
the Parties shall substitute a mutually agreeable and substantially equivalent official index
published by the Bureau of Labor Statistics or its successors, and shall use any appropriate
conversion factors to accomplish such substitution and the substitute index shall thereafter
constitute the “CPI” hereunder.

     “Customer Services” has the meaning set forth in Section 2.1(a).

     “Customer Services Manual” means the Customer Services Manual published by Triad and
updated from time to time by Triad or by Company and upon mutual consent.

     “Department” means the Illinois Department of Insurance.

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     “Disaster Recovery Manual” means the Disaster Recovery Manual, attached hereto as
Exhibit C, as updated from time to time upon mutual agreement by Company and Triad as contemplated
by Section 2.1(f).

     “Disaster Recovery Services” has the meaning set forth in Section 2.1(f).

     “Discretionary Development” has the meaning set forth in Section 2.2(b).

     “Dispute” has the meaning set forth in Section 13.3.

     “Documentation” has the meaning set forth in Section 4.3(a).

     “Effective Date” has the meaning set forth in the preamble hereto.

     “Equipment” means Triad’s computer central processing units and peripheral equipment
including, without limitation, any cluster, combination or network of such central processing units
and peripheral equipment, whether owned as of the Effective Date, or acquired during the Term,
which are owned or operated by Triad, its Affiliates or a Third Party who is providing services to
Triad (including any replacements therefor.) “Equipment” also includes personal computers, cell
phones, PDAs and similar peripheral equipment purchased or leased by Triad during the Term for
newly hired employees or contractors (any replacements therefor) and any other such hardware that
the Parties mutually agree in writing constitutes “Equipment.”

     “Escrow Agent” means the vendor identified in the Technology Escrow Agreement or such
other vendor as the Parties may mutually agree in writing from time to time.

     “Escrow Release Notice” has the meaning ascribed to it in the Technology Escrow
Agreement.

     “Escrowed Material” has the meaning set forth in Section 4.3(b).

     “Exempt Services” means all Services indicated as having a severity level of “1” on
the applicable Schedule, Work Order or Change Order other than “Reserving Activities
(EOM)”, ServiceID # 85.

     “Exhibits” means Exhibit A, Exhibit B and Exhibit C, each of which is attached to,
incorporated in and included as a part of this Agreement.

     “Exit Plan” has the meaning set forth in Section 10.3(a).

     “Extension Term” has the meaning set forth in Section 9.1(a).

     “Failure” means, with respect to a Service, the cessation or omission of performance,
or the nonperformance, by Company in accordance with the Service Level Standards (including as
stated in Schedule A or in a Work Order or Change Order), taking into consideration any applicable
resolution period. A Failure shall include

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Company’s inability or failure to achieve a Service Level Standard which is caused by
non-performance by a Company Third Party, excluding, however, any inability or failure of Company
to achieve a Service Level Standard, which inability is caused by (a) any Company Third Party
performing in compliance with a contract, arrangement or understanding that was included in the
Purchased Assets or otherwise assigned to and assumed by Company from Triad in connection with the
Purchase Agreement (and which has not been modified to Triad’s detriment); or (b) a contract,
arrangement or understanding with a Third Party which is retained by Triad and is utilized by
Company in performing the Services; (c) a Company Third Party performing in compliance with a
commercially reasonable contract, arrangement, agreement or understanding entered into by Company
that supports Services supplied to Triad under this Agreement which contract, arrangement,
agreement or understanding replaces a Triad commitment, arrangement, agreement or understanding in
effect immediately prior to the Effective Date and contains service level standards no less
favorable than those required by Triad thereunder; or (d) a Company Third Party performing in
compliance with a commercially reasonable contract that supports Services supplied to Triad which
Services were not received by Triad prior to the Closing Date and as to which Services Company and
Triad have not otherwise agreed upon Service Level Standards pursuant to Schedule A or a Work Order
or Change Order.

     “Force Majeure Event” has the meaning set forth in Section 15.3.

     “Frequent Service” means each Service indicated on a Schedule or Work Order as a
severity level “2” or severity level “3” Service, which Service occurs four (4) or more times per
calendar month (e.g., cutting checks).

     “FTE Rate” has the meaning set forth in Section 2.2(a).

     “Fundamental Transaction” has the meaning set forth in Section 9.1(b).

     “Governmental Body” has the meaning ascribed to it in the Purchase Agreement.

     “Guarantee” has the meaning ascribed to it in the Purchase Agreement.

     “Help Desk” has the meaning set forth in Section 6.1.

     “Incremental Costs” means all incremental costs and expenses, including but not
limited to license fees and other costs for software licenses (except as otherwise provided
herein), equipment, software, and other consumable supplies to the extent they are approved by the
Parties in a Work Order or Change Order and are related to individuals who are not employees of
Company after the Closing.

     “Indemnified Party” has the meaning set forth in Section 11.3.

     “Indemnifying Party” has the meaning set forth in Section 11.3.

     “Information and Maintenance Services” has the meaning set forth in Section 2.1(a).

5

 

     “Infrequent Service” means each Service that is indicated as a severity level “2” or
severity level “3” Service on a Schedule or Work Order, which Service is not a “Frequent Service.”

     “Initial Escrowed Material” has the meaning set forth in Section 4.3(a).

     “Initial Term” has the meaning set forth in Section 9.1(a).

     “Intellectual Property” has the meaning ascribed to it in the Purchase Agreement.

     “Intellectual Property Rights” means all rights of the following types, which may
exist or be created under the laws of any jurisdiction in the world: (a) rights associated with
works of authorship, including exclusive exploitation rights, registered and unregistered
copyrights, moral rights and mask works; (b) trademark, trade name, logo, service mark and domain
name rights and similar rights; (c) trade secret rights; (d) patent, patent rights, patent
applications and industrial property rights; (e) technology, know-how, confidential information,
designs, concepts, technical information, manuals, standard operating procedures, instructions,
specifications and all intellectual, industrial or proprietary rights of any kind; and (f) rights
in or relating to registrations, renewals, extensions, combinations, divisions and reissues of, and
applications for, any of the rights referred to in clauses “(a)” through “(e)” above.

     “JAMS” has the meaning ascribed to it in the Purchase Agreement.

     “Latent Condition” has the meaning set forth in Section 2.13.

     “Level 1 Contact” has the meaning set forth in Section 13.2.

     “Level 2 Contact” has the meaning set forth in Section 13.2.

     “Liability” means any liabilities of any kind whatsoever (whether known or unknown,
asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated,
due or to become due, and whether or not reflected or required by United States generally accepted
accounting principles to be reflected on a balance sheet), including without limitation any direct
or indirect Guarantee of any Liability of any Third Party.

     “License Agreement” has the meaning set forth in Section 4.3(d).

     “Licensed Software” means the custom computer software formerly developed and owned by
Triad, purchased by Company pursuant to the Purchase Agreement and included in the Initial Escrowed
Material, as subsequently modified and supplemented under this Agreement through Required
Developments and Discretionary Developments and any other software developments that by mutual
written agreement of the Parties in a Work Order are designated to be “Licensed Software.”

     “Licensed Technology” means the Licensed Software and the Third Party Applications and
Licenses.

6

 

     “Long-Term Failure” has the meaning set forth in Section 6.3(c).

     “Losses” has the meaning ascribed to it in the Purchase Agreement.

     “Monthly Customer Services Meetings” has the meaning set forth in Section 6.9.

     “Monthly Policies in Force” means the arithmetic average of (x) the number of Policies
in force on the last day of the applicable month and (y) the number of Policies in force on the
last day of the month immediately preceding the applicable month.

     “Notice Effective Date” has the meaning set forth in Section 2.8.

     “Notice of Early Termination or Reduction” has the meaning set forth in Section 2.8.

     “Notices” has the meaning ascribed to it in the Purchase Agreement.

     “Party” and “Parties” have the meanings set forth in the Recitals hereto.

     “Penalty Months” has the meaning set forth in Section 6.3(c).

     “Periodic Snapshot” has the meaning set forth in Section 4.3(b).

     “Person” has the meaning ascribed to it in the Purchase Agreement.

     “Personally Identifiable Information” means personally identifiable information,
including without limitation social security numbers, personal credit histories, personal financial
information and employment records.

     “Policy” means any contract of insurance issued by TGIC and all commitments,
endorsements, schedules and certificates evidencing any contract of insurance issued by TGIC or
relating thereto.

     “Proceeding” has the meaning ascribed to it in the Purchase Agreement.

     “Project” has the meaning set forth in Section 2.2(d).

     “Project List” has the meaning set forth in Section 2.2(d).

     “Purchase Agreement” has the meaning set forth in the Recitals.

     “Purchased Assets” has the meaning ascribed to it in the Purchase Agreement.

     “Quarterly Service Review” has the meaning set forth in Section 6.9.

     “Reference Period” means the period beginning on the third anniversary of the Closing
Date and ending on the fourth anniversary of the Closing Date.

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     “Release Event” has the meaning ascribed to it in the Technology Escrow Agreement.

     “Required Developments” has the meaning set forth in Section 2.2(a).

     “Schedules” means Schedule A, Schedule B, Schedule C, Schedule D and Schedule E, each
of which is attached to, incorporated in and included as a part of this Agreement.

     “Security Breach” has the meaning set forth in Section 7.6.

     “Senior Executive Officers” means, in the case of Company, the President and Chief
Executive Officer, and in the case of Triad, the President and Chief Executive Officer.

     “Service Credits” has the meaning set forth in Section 6.2.

     “Service Fees” has the meaning set forth in Section 5.1.

     “Service Grace Period” has the meaning set forth in Section 6.5.

     “Service Level Standards” has the meaning set forth in Section 6.1.

     “Service Modification” has the meaning set forth in Section 3.3(b).

     “Services” means the Base Services and Special Services.

     “Severity 1 Failure” means a Failure with respect to a Service indicated as having a
severity level of “1” in the applicable Schedule or Work Order, which Failure remains unresolved
following the applicable resolution time indicated in the applicable Schedule or Work Order.

     “Severity 2 Failure” means a Failure with respect to a Service indicated as having a
severity level of “2” in the applicable Schedule or Work Order, which Failure remains unresolved
following the applicable resolution time indicated in the applicable Schedule or Work Order.

     “Severity 3 Failure” means a Failure with respect to a Service indicated as having a
severity level of “3” in the applicable Schedule or Work Order, which Failure remains unresolved
following the applicable resolution time indicated in the applicable Schedule or Work Order.

     “Single Points of Contact” shall initially mean, for Company, Ted Gray, and for Triad,
Shirley Gaddy.

     “Special Services” means, collectively, Discretionary Developments and Required
Developments.

8

 

     “Tax” means any federal, state, local, foreign or other tax (including any income tax,
franchise tax, capital gains tax, gross receipts tax, value-added tax, surtax, estimated tax,
unemployment tax, national health insurance tax, excise tax, ad valorem tax, transfer tax, stamp
tax, sales tax, use tax, property tax, business tax, withholding tax or payroll tax), levy,
assessment, tariff, duty (including any customs duty), deficiency or fee, and any related charge or
amount (including any fine, penalty or interest), imposed, assessed or collected by or under the
authority of any Governmental Body.

     “Tax Indemnified Parties” has the meaning set forth in Section 5.7.

     “Technology Development Services” has the meaning set forth in Section 2.1(a).

     “Technology Escrow” has the meaning set forth in Section 4.3(a).

     “Technology Escrow Agreement” has the meaning set forth in the Recitals hereto.

     “Term” has the meaning set forth in Section 9.1(a).

     “TGI” has the meaning given it in the preamble hereto.

     “TGIC” has the meaning given it in the preamble hereto.

     “Third Party” means any Person other than the Parties or their respective Affiliates.

     “Third Party Applications and Licenses” means those formerly-Triad held licenses,
leases, proprietary information agreements, confidentiality agreements, consulting agreements and
service agreements of any kind relating to operating system software, application software,
hardware, network services, telecommunications services, data processing or storage services or
information security services within the Triad Technology Platform which were: (a) assigned to and
assumed by Company pursuant to the Purchase Agreement; (b) acquired by Company to replace similar
items that were not assigned to or assumed by Company under the Purchase Agreement, which items
support Services supplied by Company to Triad under this Agreement; or (c) which are retained by
Triad and utilized by Company in performing the Services.

     “Third-Party Claim” means any claim asserted against a Party or its Affiliate(s) by a
Third Party.

     “Third-Party Vendor Costs” means amounts payable to Third Party suppliers or vendors
in respect of incremental or other costs and expenses or new costs or expenses incidental to the
Services, including without limitation, product and service fees, programming fees, software
license fees, Taxes, maintenance fees, initiation and set-up costs.

     “Transaction” has the meaning set forth in the Recitals hereto.

     “Transaction Agreements” has the meaning set forth in the Recitals hereto.

9

 

     “Transfer Assistance Services” has the meaning set forth in Section 10.3(a).

     “Transferred Employee” has the meaning ascribed to it in the Purchase Agreement.

     “Triad” has the meaning set forth in the Recitals hereto. Where rights and benefits
are granted to Triad, the term “Triad” shall include Triad’s Affiliates.

     “Triad Confidential Information” means the Confidential Information of Triad.

     “Triad Indemnified Parties” has the meaning set forth in Section 11.2.

     “Triad Personnel” means Triad’s personnel, employees, agents, representatives,
approved subcontractors and invitees.

     “Triad Technology Platform” has the meaning ascribed to it in the Purchase Agreement.

     “Tribunal” has the meaning set forth in Section 13.5(a).

     “Uptime Measurement Period” has the meaning set forth in Section 6.2.

     “Uptime Percentage” has the meaning set forth in Section 6.2.

     “Work Order” has the meaning set forth in Section 2.2(b).

ARTICLE II

SERVICES

     2.1. Description of Services.

          (a) Immediately from and after the Closing, and subject to the terms and conditions hereof
(including, without limitation, Section 3.1), Company shall: (i) maintain and support the Licensed
Technology and Equipment as described in Schedule A and provide to Triad the information and
technology services listed on Schedule A (the “Information and Maintenance Services”); (ii)
provide to Triad access to the Triad Technology Platform in order to support Triad’s run-off
business pursuant to the license grant in Article IV hereof; (iii) provide to Triad the customer
service-related services listed on Schedule A (the “Customer Services”); and (iv) provide
to Triad the technology development services listed on Schedule C (the “Technology Development
Services”). The Information and Maintenance Services, access rights under Article IV, Customer
Services and Technology Development Services are collectively referred to as the “Base
Services.”

          (b) Each of the Schedules describing a Base Service contains: (i) a description of the Service
(or group of related Services) to be performed delineated by relevant department, function and
detailed function; and (ii) significant performance requirements and other special terms and
conditions relating directly to the Services to be

10

 

performed. Schedules may also contain any applicable minimum Service Level Standards or service
requirements for a Service, and the associated severity level for failure to meet such Service
Level Standards or service level requirements.

          (c) Information and Maintenance Services will be charged to Triad as “Special Services” if
such services (i) are not (x) indicated as “Maintenance” services on Schedule A, or (y) ongoing
maintenance services (including, without limitation, patches, upgrades or system administration
required to support the Triad Technology Platform) or (z) services deemed “Information and
Maintenance Services” pursuant to Section 2.1(f) and (ii) require, on a per-event basis,
more than seventy-five (75) hours of full time programmer or analyst time in a calendar month. The
purchase of and support for any Equipment acquired by Triad after the Effective Date shall be
subject to the Change Order process set forth in Section 3.3 hereof.

          (d) Subject to Section 3.1, if (x) Triad requests as Base Services any services that are not
within the scope of the Base Services listed on the Schedules and would require a material increase
in the resources allocated by Company to the performance of such Base Services and (y) such Base
Services are not deemed Special Services pursuant to Section 2.1(c), then the Parties will
negotiate in good faith to agree upon the priority of performance for such Base Services and the
fees to be charged to Triad for such Base Services (which shall not exceed the FTE Rate).

          (e) With respect to the Technology Development Services, Company shall provide such Services
as follows:

     (i) Until the first anniversary of the Closing Date, Company shall provide at Triad’s request
up to one thousand four hundred forty (1,440) hours (counting only such hours performed by
programmers or analysts with skills, experience levels and capabilities substantially equivalent to
those programmers or analysts performing such tasks for Triad immediately prior to the Closing
Date) of such Technology Development Services per calendar month (prorated for any partial month);
provided, that Company shall not be required to provide more than three hundred sixty (360)
hours of such Technology Development Services during any calendar week.

     (ii) Following the first anniversary of the Closing Date, Company shall provide up to forty
(40) hours of such Technology Development Services per calendar month for each ten thousand
(10,000) Policies (with proration) in force as of the first day of such calendar month.

          (f) Disaster Recovery Services. Company shall provide disaster recovery services as
set forth in the Disaster Recovery Manual (“Disaster Recovery Services”) in the event of a
Disaster to manage the recovery and full functionality of the Triad Technology Platform and all
Services provided hereunder. The Disaster Recovery Services related to the maintenance of a
Disaster Recovery Manual and annual testing

11

 

shall be provided as Information and Maintenance Services pursuant to this Agreement and the
Disaster Recovery Manual, and no such services shall be treated as “Special Services” pursuant to
Section 2.1(c) or otherwise. Company may from time to time update the Disaster Recovery Manual.
Triad and Company shall mutually agree upon changes to the Disaster Recovery Manual that affect the
Disaster Recovery Services provided hereunder, provided, however, that such updates shall
not be materially less protective (individually or in the aggregate) of Triad than the provisions
set forth in Triad’s Business Continuity Plan/Disaster Recovery Manual as of the Closing Date.
Company shall provide reasonable consulting services to Triad to assist in updating its own
Business Continuity Plan. Notwithstanding anything herein to the contrary, business continuity
consulting services provided by Company related to Triad’s Business Continuity Plan shall be
treated as Information and Maintenance Services pursuant to this Agreement, and no such services
shall be treated as “Special Services” pursuant to Section 2.1(c) or otherwise except to the extent
such Services require more than seventy-five (75) hours of programmer or analyst time in a calendar
month.

     (i) A Disaster may be declared by Company only in accordance with the Disaster Recovery Manual
and upon written notice to Triad. In the event that Triad does not agree that a Disaster has
occurred, Triad shall give prompt written notice to Company and the Parties will work promptly to
resolve any Dispute in accordance with the provisions of Article XIII of this Agreement. However,
if in the reasonable judgment of Company a Disaster has occurred and is continuing, Company may
proceed as if a Disaster had occurred while the Dispute resolution under Article XIII is pending,
and the Parties shall subsequently resolve through Dispute resolution whether in fact a Disaster
occurred and, if not, whether Company is responsible for any Failures or other violation of Service
Level Standards during the period of the alleged Disaster. A Disaster may only be declared resolved
by Company in accordance with the Disaster Recovery Manual. Any Dispute over whether a Disaster
condition is actually resolved will be resolved when Triad’s systems are materially restored and
operational, in accordance with this paragraph; provided, that, in any event, Company shall
declare a Disaster condition resolved as soon as possible and will provide periodic updates to
Triad on Company’s efforts to resolve a Disaster.

     (ii) Company will provide Disaster Recovery Services to Triad only with respect to Triad’s
location in Winston-Salem, North Carolina. The declaration of a Disaster impacting Triad’s or
Company’s Winston-Salem, North Carolina location will have the immediate effect of suspending all
Services provided by Company to Triad and the standards set forth in the Disaster Recovery Manual
will immediately take effect and shall remain in effect until the Disaster condition is declared by
Company to have been resolved consistent with the terms hereof and as may be appropriate, in
Company’s commercially reasonable judgment, in light of the nature of the Disaster. In addition,
the proper declaration of a Disaster

12

 

only at Company’s Radnor, Pennsylvania location may result in the immediate, short-term suspension
of the Service Level Standards (but only with respect to Services affected by such Disaster in
light of Company Personnel and resources required to be deployed to address such Radnor,
Pennsylvania disaster base) for a reasonable amount of time to be mutually agreed upon by the
Parties.

     (iii) In the event of a Disaster, Company shall: (A) arrange for Company’s offsite tapes
(which shall include tapes backing up Triad’s business operations) to be sent to Company’s
designated offsite disaster recovery location, and (B) recover the infrastructure environment as
set forth in the Disaster Recovery Manual.

     (iv) The apportionment of costs incurred in recovering from a Disaster between the Parties for
the Disaster Recovery Services to Triad will be determined as follows: (A) if the disaster that
occurred and the provision of Disaster Recovery Services by Company had a substantially equivalent
impact on each Party’s business and operations, the costs of providing the Disaster Recovery
Services will be shared equally between Company and Triad, or (B) if the disaster that occurred and
the provision of Disaster Recovery Services did not have a substantially equivalent impact on the
Parties’ respective business and operations (such as a situation in which a core application used
by both Parties was only required to be restored for one Party’s business and operations), the
Disaster Recovery Services costs will be allocated to each Party in good faith based on each
Party’s respective consumption of Disaster Recovery Services and resources, based on man hours
expended or other reasonable requirements. However, in no event will the declaration of a Disaster
relieve Triad of its obligation to pay the full amount of fees otherwise due and owing to Company
under Article V hereof for all Services provided by Company up to the time that a disaster is
declared. In the event a Disaster is caused by a Party, that Party shall pay the reasonable costs
for any Disaster Recovery Services.

     2.2. Special Services.

          (a) Upon Triad’s request, Company shall provide additional services related to system changes,
updates and developments performed as a result of legal or regulatory changes imposed by
Governmental Bodies that affect Triad’s run-off business and run-off-related operations in the
United States (“Required Developments”). Triad shall have the exclusive obligation of
identifying to Company such legal or regulatory changes imposed by Governmental Bodies that affect
Triad’s run-off business in the United States, and Company shall not be required to identify,
assess or guarantee in any way Triad’s legal compliance requirements in connection with providing
any Required Developments. “Required Developments” does not include (i) any disaster recovery
efforts or services or business continuity consulting efforts and services as contemplated in
Section 2.1(f) hereof; or (ii) the performance of Disaster Recovery Services by

13

 

Company following the occurrence of a Disaster; provided, that a Required Development may
apply to procedures that need to be implemented or changed with respect to disaster recovery as a
result of legal or regulatory changes. The Parties shall mutually agree upon the terms and costs of
any requested Required Developments and on the priority of such Required Developments vis-à-vis the
other Services being performed hereunder. If the Required Developments have a substantially
equivalent impact on each Party’s business and operations, the costs of Required Developments will
be borne equally by Company and Triad. If a Required Development has a disproportionate impact (and
results in disproportionate technology development or resource needs) on one Party over the other
Party, such costs shall be allocated disproportionately (as mutually agreed by the Parties) based
on application development required and the relative impact of a Required Development on each
Party’s business. Triad’s share of the costs of Required Developments shall be satisfied as
follows: (i) by allocation of available service hours under Section 2.1(e) (to the extent
available); (ii) by payment of cash in respect of programmer and analyst hours involved in such
Required Development tasks not satisfied as set forth in the preceding clause (i) at an agreed rate
of seventy-seven dollars ($77.00) per hour of full time employee time (as annually adjusted upward
or downward on the anniversary of the Effective Date based on the year over year percentage change
in the CPI (the “FTE Rate”); and (iii) by payment of cash in respect of Triad’s share of
Third-Party Vendor Costs that have been pre-approved in writing by Triad. If at any time the
available resources of Company employees are not sufficient to staff the Required Developments
because of the existing use of such resources on Base Services or other Special Services, then
Triad shall work with Company to re-prioritize such existing Services so that Company can
adequately staff the Required Developments.

          (b) Company shall provide to Triad mutually agreed upon Technology Development Services in
excess of the budgeted hours of the Technology Development Services required by Section 2.1(e) with
respect to additional technology developments necessary to facilitate the efficient and orderly
conduct of Triad’s United States run-off business including, without limitation, developments
related to loss mitigation, claims/defaults, quality assurance, accounting systems and customer
service functions (“Discretionary Development”). Discretionary Developments will be
provided at mutually agreeable service standards and pursuant to a written work order (a “Work
Order”) entered into hereunder, with fees at the FTE Rate.

          (c) In consideration of the Base Services (other than Services constituting software
maintenance), Triad shall pay the Service Fees as set forth in Article V. Services constituting
software maintenance shall be provided by Company at no additional charge. In consideration of the
Special Services, Triad shall pay the amounts described in this Section 2.2 as Service Fees (after
giving effect to allocating available service hours under Section 2.1(e) to Required Developments
as contemplated herein) as set forth in Article V.

          (d) Company shall use commercially reasonable efforts to complete all projects within the
estimated hours provided to Triad with respect to each such project. Attached hereto as Schedule D
is the list of initial development projects, including

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Special Services projects (each, a “Project” and such list (as it may be updated and
re-prioritized as contemplated herein, the “Project List”), in priority order, pending as
of the Closing, including the hours estimated to be required in order to complete each Project. At
least monthly thereafter during the Term, Company will update the Project List with additional or
different Projects, as requested by Triad. Triad shall then re-prioritize the Project List, in
order to reflect then-current needs and priorities of Triad, and Company shall reset its timing
estimates accordingly. If, at any time during the Term, Company determines that the completion of
all Projects on the Project List scheduled to be completed in the immediately subsequent calendar
quarter requires more employee time and Service capacity then allocated to Special Services,
Company shall promptly notify Triad of such lack of capacity, and the members of the Committee
appointed pursuant to Section 13.1 shall negotiate in good faith to re-prioritize the Project List
and timing estimates and otherwise resolve such capacity utilization issues in a commercially
reasonable manner.

     2.3. Service Administration. The Parties shall coordinate all communications,
questions and Dispute resolution with respect to all Services as described in Article XIII, except
with respect to specific arrangements set forth in the Schedules describing the Services and any
other arrangements made with respect to Special Services.

     2.4. Payment for Services By Affiliates and Third Party Vendors. Company shall be
responsible to pay its Affiliates for any Services provided by such Affiliates to Triad, and shall
pay Third Party vendors and suppliers for Third-Party Vendor Costs. To the extent any of the
foregoing labor costs pursuant to a Change Order or Work Order approved by both Parties are
“Incremental Costs” under the terms hereof, such items will be invoiced to Triad pursuant to
Article V.

     2.5. Performance by Company. Company shall perform the Services in a workmanlike and
professional manner and in accordance with the Service Level Standards specified in the Schedules
under this Agreement, but in no event shall Company be held to a standard with respect to any
service that is higher than that actually in effect at Triad prior to the Effective Date. Company
shall perform those tasks, make available the Company Personnel and provide the reports,
deliverables and information with respect to the Services as expressly set forth in the Schedules
hereto or otherwise agreed by the Parties in writing. The Company anticipates that it will deliver
Services to Triad in North Carolina in support of Triad’s United States run-off business. Nothing
in this Section 2.5 shall be deemed to: (a) limit Company’s ability to perform Services for the
benefit of Triad in or from other jurisdictions in Company’s sole discretion; or (b) conflict with
Section 5.7 herein. It is anticipated by the Parties that the primary Services generally will not
result in the transfer of tangible property.

     2.6. Cooperation of Triad. Triad shall use commercially reasonable efforts to
cooperate with Company in any manner reasonably requested in order to facilitate timely and proper
performance of the Services. In connection with Company’s provision of the Services, including with
testing of the Base Services or if Company has developed any Special Services (e.g., any
new or upgraded software or Services), Triad will cooperate in a reasonable and timely manner with
all reasonable requests, including user testing and

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the validation of such software or Services upgrades. During the first six (6) months following the
Closing Date, or such longer period until the Triad Technology Platform is production ready,
compliant with all Applicable Laws and required approvals of Governmental Bodies, and capable of
on-boarding its first customer, Company will not request such end user cooperation in testing more
than once per month, which cooperation by Triad’s Personnel shall not exceed forty (40) hours
without Triad’s consent. Following such initial six (6) month or longer period after the Closing
Date, Company will not request such end user cooperation in testing more than once per calendar
quarter, which cooperation by Triad’s Personnel shall not exceed forty (40) hours without Triad’s
consent. Triad’s failure to cooperate with Company in the manner described in this Section 2.6 or
as otherwise reasonably requested by Company shall not relieve Company of its obligations hereunder
except and only to the extent that such failure would preclude or materially interfere with
performance by Company of a particular component of the Services that it is obligated to provide.
In addition, the Parties agree that no more than one time each calendar year Company may request
the testing of a scheduled upgrade that requires a more significant testing obligation. The Parties
agree to use commercially reasonable efforts to comply with any such request for an annual testing
event so long as such request has included reasonable prior notice to Triad.

     2.7. Services Not to Be Withheld. Provided Triad is not in material breach of its
obligation under this Agreement which prevents Company’s ability to perform services under this
Agreement, including its obligation to pay Service Fees hereunder (excluding (i) any good faith
dispute by Triad with respect to any Service Fees under Section 5.1 and (ii) a Force Majeure
event), Company shall not intentionally withhold the provision of any or all of the Services for
any reason during the Term. If Company breaches the provisions of this Section 2.7, Company agrees
that Triad shall be irreparably harmed. In such event, Triad shall be entitled to apply to a court
of competent jurisdiction for an injunction compelling specific performance by Company of its
obligations under this Agreement.

     2.8. Reduction or Early Termination of Technology Development Services. Triad may at
any time, and from time to time, after the second anniversary of the Effective Date, deliver to
Company an irrevocable “Notice of Early Termination or Reduction” in respect of a
termination or reduction of a Technology Development Service, which notice shall include a
representation to the effect that Triad has made arrangements to operate its business with reduced
amounts, or without any, of such Technology Development Service hours from Company. The effective
date for any such Notice of Early Termination or Reduction shall be deemed to be the later of (x)
the ninetieth (90th) day following Company’s receipt of such Notice of Early Termination
or Reduction or (y) the date set forth in the Notice of Early Termination or Reduction (the
“Notice Effective Date”). In connection with a Notice of Early Termination or Reduction,
from and after the Notice Effective Date, Company shall have no obligation to provide such hours of
Technology Development Service specified in the Notice of Early Termination or Reduction, and Triad
shall have no obligation to pay any Service

16

 

Fees in respect of such terminated Technology Development Service hours performed from and after
the Notice Effective Date.

     2.9. Services at Triad’s Option. Any maintenance, update or similar Services performed
pursuant to requirements hereunder are performed at Triad’s request, Triad having voluntarily
elected to receive such Services. To the extent such Services are performed with respect to
software, the Parties acknowledge that other agreements comprising the Transaction Documents (such
as the Purchase Agreement) form the basis for any transfer of software. No election by Triad not to
receive any Information and Maintenance Services shall result in any reduction of the Service Fees.
In the event that Triad elects in writing to reduce maintenance services and as a result does not
procure at its own expense any required Third Party maintenance services, or renewals of same, for
software or Equipment, then Company may procure such required maintenance and pass through to Triad
all associated costs and fees, and Triad shall pay such costs and fees in accordance with Article V
hereof. To the extent that any election by Triad under this Section 2.9, including any failure by
Triad to maintain in effect Third Party maintenance services, prevents, impedes or adversely
affects any of the Services, Company shall be relieved of any obligations or liability whatsoever
with respect to such affected Services, including without limitation all affected Service Level
Standards.

     2.10. Obligations of Triad. Triad acknowledges the dependency of the Services upon its
cooperation with Company and therefore Triad agrees that at all times it shall use commercially
reasonable efforts to:

          (a) provide Company, its Affiliates and their respective subcontractors with access to its
facilities as is reasonably necessary for Company, its Affiliates and their respective
subcontractors to perform the Services;

          (b) provide Company, its Affiliates and their respective subcontractors with information and
documentation reasonably necessary for Company, its Affiliates and their respective subcontractors
to perform the Services;

          (c) make available, as reasonably requested by Company, its Affiliates or their respective
subcontractors, reasonable access to appropriate Triad Personnel and provide timely decisions in
order that Company may perform its obligations hereunder;

          (d) cooperate with Company during the Service Grace Period to enable Company to review and
assess all information and records of service levels and performance criteria applicable to the
Triad Technology Platform, including all maintenance, development and support therefor, which were
in existence at Triad prior to the Effective Date;

          (e) cooperate with Company in the installation and end user testing of all software or other
materials developed by Company in connection with deliverables under the Base Services, including
making Triad Personnel and Equipment available for the purposes of such testing (and subject to the
condition that Triad’s failure to cooperate with the Company in the manner reasonably requested
shall not relieve Company of its

17

 

obligation hereunder, except and only to the extent that such failure would preclude or materially
interfere with performance by Company a particular component of the Services that it is obligated
to provide);

          (f) comply in all material respects with all terms and conditions applicable to Triad under
any Schedules to this Agreement;

          (g) not download software to computers without the prior written consent of Company; and

          (h) minimize the expense, distraction and disturbance to Company, its Affiliates and their
respective subcontractors by Triad Personnel in the performance of their respective obligations
under this Agreement.

     2.11. Compliance with Legal Requirements. Company shall not provide, and shall not be
obligated to cause to be provided, any Service to the extent (but only to the extent) that the
provision of such Service would require Company, its Affiliates or their respective subcontractors
or any of their respective officers, directors, employees, agents or representatives to violate any
Applicable Law. If the provision of a Service hereunder would be prohibited under the foregoing
sentence, the Parties shall work together in good faith to modify such Service or provide
alternatives to such Service that are not prohibited and that provide to Triad to the extent
practical the benefit of the affected Service to the extent permitted under Applicable Law;
provided that Company shall not be obligated to modify any Service, without additional compensation
by Triad, to the extent that such modification entails material additional costs to Company. Each
Party shall be responsible for ensuring that its business (including, in the case of the Company,
its performance of the Services) complies with all Applicable Law. Triad shall not request Company
to provide any Service to the extent Triad knows or reasonably should know that providing such
Service would likely violate any Applicable Law or the terms of any agreements between Triad and
any Third Party.

     2.12. No Additional Resources. Except as expressly provided in this Agreement, in a
Schedule hereto, Work Order or Change Order or in the Purchase Agreement, Company, in providing or
causing to be provided the Services, shall not be obligated to:

          (a) hire any additional employees, retain any current employees, offer any incentive to
current employees, maintain the employment of any specific employees or train or retrain any
employee with respect to the Services;

          (b) purchase, lease or license any additional information technology equipment or systems;

          (c) maintain any particular procedure, equipment or system so long as Company does not make
any changes that, individually or in the aggregate, materially alter the procedures that were used
to support Triad prior to the Closing Date;

18

 

          (d) take any other action not in accordance with past practices in servicing the Purchased
Assets as related to Triad’s run-off business; or

          (e) pay any costs related to the conversion or migration of data to Triad or to any alternate
supplier of services to Triad.

     2.13. General Savings Clause. Company shall not be deemed to be in breach of this
Agreement and no penalties or Service Credits shall accrue if, but only to the extent that: (a)
Company’s performance of any of the Services or any component part thereof is dependent upon the
performance by Triad of a related Triad obligation to Company (including Triad’s obligations under
Section 2.10), and Triad has delayed or failed to provide such performance; or (b) a latent or
dormant flaw or imperfection exists in the Licensed Technology at the time of the Closing Date that
is discovered prior to the end of the eighteen (18) month period commencing on the Effective Date
and such flaw or imperfection is the primary and dominant reason for Company’s inability to perform
a Service (each, a “Latent Condition”) provided that if the Parties do not agree on the “cause”
then the Parties shall resolve pursuant to Article XIII herein. During the eighteen (18) month
period commencing with the Effective Date, the resolution or fix of a Latent Condition shall be
charged to Triad and satisfied by: (a) allocation of available service hours under Section 2.1(e)
(to the extent available); and (b) to the extent service hours under Section 2.1(e) are not
available, payment of cash in respect of the programmer and analyst hours involved in such
resolution at the FTE Rate.

ARTICLE III

SCOPE OF SERVICES; CHANGE PROCESS

     3.1. General Scope. Company shall use commercially reasonable efforts to provide each
of the Services in accordance with the descriptions in the Schedules hereto and any Work Order
entered into hereunder, which the Parties agree is intended to describe and define substantially
equivalent services practiced or received by Triad immediately prior to the Closing. The foregoing
shall not be deemed to restrict Company’s obligations to provide for and accommodate Triad’s disk
space and data storage growth requirements for its run-off business throughout the Term in order
adequately to provide the Services. Triad represents that, as of the Effective Date, all of its
desktop and laptop computers are configured in accordance with Triad’s standard configurations as
of such date. Triad represents that it has used its good faith efforts to provide on the Schedules
hereto a reasonably detailed description of substantially and materially all of the services it
requires from Company related to Triad’s United States run-off business as of the Closing Date
(which were practiced or received by Triad before the Closing; however, Company acknowledges that
specific tasks, work or deliverables related or incident to the scheduled Services may have been
omitted from the Schedules either due to inadvertence or immateriality and Company agrees that it
shall provide any such omitted services to Triad (a) without additional charge to Triad; (b)
without specific Service Level Standards (unless the Parties otherwise agree in writing); and (c)
on terms otherwise reasonable and agreed by the Parties. The foregoing is not intended to
materially modify Company’s obligations hereunder. Any such omitted services contemplated by the
preceding sentence the provision of which would individually or in

19

 

the aggregate materially increase the scope of the Services or Company’s obligations hereunder and
which are materially in excess of Triad’s practices prior to Closing shall be subject to the Change
Order process set forth in Section 3.3 and additional Costs to be incurred by Triad, if applicable,
shall be incurred only on a prospective basis.

     3.2. Maintenance Windows. Company may shut down the Services in accordance with
reasonable pre-scheduled maintenance windows mutually agreed by the Parties or at any time due to a
Security Breach. The scheduled maintenance windows shall always be planned to be performed outside
customary Business Hours, or if such timing is not practicable, shall be planned to be performed so
that such downtime shall not adversely and unduly affect Triad’s operations to which the provision
of such Services relate. In the event maintenance is nonscheduled, where feasible Company shall
notify Triad in writing (electronic or otherwise) not less than twenty-four (24) hours in advance
of such emergency maintenance. Where written notice is not feasible, Company shall give prompt oral
notice to Triad’s Level 1 Contact, which notice shall be promptly confirmed in writing (electronic
or otherwise) by Company. Company shall afford Triad the benefit of any arrangements for substitute
services during normal maintenance windows to the extent that Company makes available such
substitute services for its own comparable business operations.

     3.3. Changes in Scope.

          (a) Company shall provide the Base Services utilizing the Triad Technology Platform and such
other equipment, systems or technology as Company reasonably deems necessary for the performance of
the Base Services. In the performance of the Base Services, Company shall adhere to the provisions
of Triad’s Customer Services Manual and shall use commercially reasonable efforts to achieve
consistency, where appropriate, with the other applicable policies, practices and methodologies
used to support Triad immediately prior to the Closing Date to the extent these have been furnished
to Company prior to the Closing Date.

          (b) During the Term, the Parties may require that the Base Services be modified to comply with
then-existing Applicable Law or to facilitate the efficient and orderly conduct of Triad’s
operations and business (a “Service Modification”). Either Party may propose a Service
Modification and the Parties shall cooperate to mutually prepare a detailed description of each
proposed Service Modification (each, a “Change Order”). All Change Orders must contain: (i)
a description of any additional work to be performed and/or changes to the performance required of
either Party, including the estimated number and skill level of personnel necessary to make such
changes and/or additions and the availability of such personnel over the ensuing period; (ii) a
statement of the impact of the additional work or changes on the Services, schedule, costs or other
requirements of this Agreement; (iii) acceptance test procedures for such additional work, if
applicable; (iv) identification of service category (i.e., Maintenance Services, Technology
Development Services or Special Services); and (v) signatures of duly authorized individuals of
each Party. Company may proceed with modifications to its own services so long as it does not
materially disrupt the Services (or any of them) or violate the Service Level Standards. Company
shall accept any such Change Order

20

 

requested by Triad; provided that subject to Section 3.1, in the event that the acceptance of a
particular Change Order requested by Triad would require Company to incur Third Party Vendor Costs,
or to expend incremental effort, resources or performance beyond that which is required under this
Agreement prior to the acceptance of such Change Order, then Company shall promptly provide notice
to Triad (in a manner permitted pursuant to Section 15.1) of the impact of such Change Order,
including, without limitation, any Service Fees or allocation of Technology Development Services
hours. No Change Order shall take effect until the Parties have agreed with respect to such
changes, fees or re-allocation of hours. If appropriate, the Parties shall negotiate in good faith
an equitable cost or hours adjustment in connection with such Change Order requested by Triad.

          (c) Company shall provide to Triad all proposed Service Modifications on the terms set forth
in this Section 3.3(c). Company shall complete and implement Service Modifications on the schedule
required by Applicable Law or as agreed by the Parties, taking into account Company’s pre-existing
work load, the amount of advance written notice given to Company by Triad, and other service
obligations and requirements of Triad already being provided by Company pursuant to this Agreement.
Unless otherwise agreed by the Parties, Company’s time expended to implement and deliver a Service
Modification proposed by Triad shall be treated as Special Services for purposes of allocating
hours, paying the FTE Rate and other matters. Notwithstanding anything herein to the contrary, no
Service Modification proposed by Company shall (i) result in additional Service Fees, costs or
expenses to Triad or (ii) count towards hours allocated to Technology Development Services under
Section 2.1(e).

          (d) If a Change Order is delivered in accordance with this Article III, the definition of
Services and the Schedules hereto will be deemed amended to reflect the implementation of the
Service Modification as well as any other terms and conditions agreed upon by the Parties in
writing.

ARTICLE IV

LICENSE GRANTS

     4.1. License Grant. Subject to the terms and conditions of this Agreement, Company
hereby grants to Triad a fully paid-up (i.e., free), nonexclusive, nontransferable and
limited license in the United States during the Term to access and use the Licensed Software for
Triad’s internal business purposes in connection with using the Services. To the extent and only to
the extent that Triad may require a license to any Company Intellectual Property in connection with
receipt of the Services, Company grants to Triad a fully paid-up (i.e., free),
nonexclusive, nontransferable and limited license in the United States during the Term to access
and use Company Intellectual Property solely for the purpose of receiving and using the Services in
Triad’s normal course of business. Triad shall not have the right to reproduce or make any back-up
or archival copies of Company Intellectual Property. No other license of any kind, express or
implied, is granted to Triad in Company Intellectual Property and Company reserves all of its
rights therein except as expressly granted in this Agreement.

21

 

     4.2. Subcontractors. Subject to Company’s prior written approval, which shall not be
unreasonably withheld, Triad may allow use of all or part of the Licensed Technology to Third
Parties (including, without limitation, contractors and outsourcers) performing services for Triad.
As a condition of each such third party’s use of the Licensed Technology, the third party shall
execute a confidentiality agreement with Triad in which the third party agrees to use the Licensed
Technology and information obtained from Triad concerning the Licensed Technology only to perform
services for Triad and also agrees not to disclose any information concerning the Licensed
Technology to any third party or to use the Licensed Technology for the benefit of anyone other
than Triad. In addition, Triad shall be required, at Company’s request, to (a) provide Company with
a copy of any such confidentiality agreements between Triad and any third parties using the
Licensed Technology to perform services for Triad under this Section 4.2; and (b) name Company as a
third party beneficiary to the enforcement of any intellectual property rights and confidentiality
provisions of such third party agreements or arrangements under this Section 4.2.

     4.3. Escrow.

          (a) On the Closing Date, Triad, with the cooperation of Company, shall place in a Third Party
technology escrow with the Escrow Agent for the benefit of Triad (and Triad shall be registered as
a Preferred Beneficiary under the terms of the Technology Escrow Agreement) (the “Technology
Escrow”) the following, whether in print or electronic form: the computer program object code,
source code and documentation relating to the then-current production version of the Licensed
Software, including maintenance and support records, audit records, policy documents, existing
technical manuals associated with the source code; system specifications, scripts, database schemas
and documentation; documentation and data; existing compilation procedures in human and machine
readable form; existing execution procedures in human and machine readable form; existing system
flow charts, programmers’ notes, program flow charts, file layouts, report layouts, and screen
layouts (the “Documentation”), as previously used by Triad to operate, support or maintain
the proprietary computer program code in the Triad Technology Platform (collectively, the
“Initial Escrowed Material”). Triad shall be solely responsible for the accuracy and
completeness of the Initial Escrowed Material and for any defects in the Services to the extent
that these are attributable to the inaccuracy or incompleteness of the Initial Escrowed Material as
deposited by Triad. The Initial Escrowed Material shall not include any computer program code,
documentation or other materials that are owned by a Third Party or that is owned by Triad, but
according to the terms of any applicable contract, arrangement or understanding with Third Party,
may not be placed into escrow and licensed by Company to Triad pursuant to the Escrow License
Agreement, unless expressly agreed otherwise by the Parties and stated in the Technology Escrow
Agreement. Under no circumstances shall the Initial Escrowed Materials include hardware.

          (b) On
a monthly basis from the Closing Date to the fifth
(5th) anniversary of the
Closing Date and thereafter on an annual basis to the end of the Term,

22

 

Company shall place in the Technology Escrow: (i) a “snapshot” of the then-current version of the
Licensed Software, including all updates, changes, alterations or modifications to the Licensed
Software that constitute Required Developments, Technology Development Services and Discretionary
Developments; and (ii) any and all updates to the Documentation (collectively, (i) and (ii) shall
be referred to as a “Periodic Snapshot” and, together with the Initial Escrowed Material,
the “Escrowed Material”). To the extent that following the Closing Date other computer
program code materials are (i) created by Company solely in the normal course of its business
operations and (ii) necessary for Company to operate, support or maintain the proprietary computer
program code in the Licensed Software, such Periodic Snapshots shall also include such additional
materials. The Periodic Snapshots and other Escrowed Material will not include any discretionary
development performed by or for Company other than the Discretionary Development, unless such
discretionary developments are deemed Licensed Software by mutual written agreement of the parties.

          (c) Unless the Parties otherwise agree in writing, Escrowed Material (including the Initial
Escrowed Material and any Periodic Snapshots) will not include (i) any computer program object
code, source code, documentation, forms, records, policy documents, system specifications, scripts,
logs, programmer notes, databases or other materials of any kind used only in the operation of
Triad’s business in Canada or any other region outside of the United States; (ii) any computer
program code or related materials that are not owned by Company; or (iii) any other materials
developed by or on behalf of Company or acquired by Company and which are not (a) Required
Developments, (b) Discretionary Developments, (c) Technology Development Services (as contemplated
by Section 2.1(e)), or (d) otherwise necessary to operate the Licensed Technology in support of
Triad’s run-off business (including, without limitation, any modification contemplated by Section
3.3(b)).

          (d) Upon receipt by Company of an Escrow Release Notice (as defined in the Technology Escrow
Agreement), Triad shall be granted a worldwide, limited, non-exclusive, personal, non-transferable
(except as provided below), royalty-free, perpetual right to use the Escrowed Material solely for
its internal business purposes subject to the terms and conditions set forth in a License Agreement
in substantially the form of Exhibit B (the “License Agreement”). Except as otherwise
provided herein, the Escrowed Material shall only be available for release from the Escrow during
the time period beginning with the second anniversary of the Closing Date and ending on the seventh
anniversary of the Closing Date.

          (e) Unless otherwise expressly set forth in the Technology Escrow Agreement, Triad shall be
responsible for and pay all fees of the Escrow Agent for establishing, maintaining and verifying
the Technology Escrow, and Company shall be responsible for and pay all of its internal costs and
other expenses associated with creating and maintaining the materials to be included in the
Technology Escrow (other than the Escrow Agent’s fees), including delivering the Periodic Snapshots
and other Escrowed Material. Either Party’s failure to fulfill its obligations under this Article
IV shall be deemed a breach of a material term of this Agreement. Under no circumstances

23

 

shall Company have any Liability whatsoever under this Agreement to Triad or its Affiliates with
respect to any loss or claim relating to or arising out of (i) the completeness, accuracy or
authenticity of the Initial Escrowed Material; (ii) ownership of or valid title to all or any part
of the Initial Escrowed Material, including without limitation any Encumbrances of any kind thereon
existing as of the Closing Date, or the validity and enforceability of any Intellectual Property
rights in the Initial Escrowed Material; (iii) any breach of the Technology Escrow Agreement by the
Escrow Agent thereunder or its representatives, or (iv) any infringement of any copyrights,
patents, trademarks or service marks, or misappropriation of any trade secrets, belonging to any
Person to the extent that any infringement or misappropriation is based upon the Initial Escrowed
Material.

          (f) Company shall conduct annual testing of the Escrow Material as set forth on Exhibit D
hereto.

     4.4. No Waiver. Receipt of such source code does not constitute (a) waiver of any
other remedies available to Triad for Company’s breach pursuant to this Agreement or any other
agreements, or (b) any admission of fault by Company in the performance of its obligations under
this Agreement.

ARTICLE V

FEES AND PAYMENT FOR SERVICES

     5.1. Service Fees. Triad shall pay monthly service fees (“Service Fees”) in
respect of the Services as set forth herein.

          (a) Base Services Other than Technology Development Services. For Base Services other
than Technology Development Services, Triad shall pay Company Service Fees as follows: (i)
commencing on the Effective Date and continuing until the first anniversary of the Effective Date,
Triad shall pay a monthly fee of $416,500 (prorated for any partial month) plus any Incremental
Costs incurred during the month; and (ii) on or after the first anniversary of the Effective Date,
Triad shall pay a monthly service fee comprised of the product of (x) Monthly Policies in Force and
(y) the Annual Service Cost divided by 12 (prorated for any partial month).

          (b) Technology Development Services. For Technology Development Services, Triad shall
pay Company Service Fees as follows: (i) commencing on the Effective Date and continuing until the
first anniversary of the Effective Date, Triad shall pay a monthly fee of $103,500 (prorated for
any partial month) plus any Incremental Costs incurred during the month; and (ii) on or after the
first anniversary of the Effective Date and subject to Section 2.8, Triad shall pay a monthly
service fee comprised of the product of (x) Monthly Policies in Force and (y) the Annual Technology
Development Cost divided by 12 (prorated for any partial month).

          (c) Notwithstanding the foregoing Sections 5.1(a)-(b):

24

 

     (i) The aggregate Monthly Service Fees paid by Triad under Section
5.1(a) and (b) during the Initial Term shall be at least $150,000 for Base
Services (including Technology Development Services) (such amount to include the
dollar value of any Required Developments which have been made utilizing the
Technology Development Services hours described in Section 2.1(e)(i) hereof);
and

     (ii) The aggregate Service Fees paid by Triad during each Extension Term
shall not exceed the Service Fees paid by Triad during the Reference Period, as
the same are adjusted (upward or downward) in order to give effect to (x) the
percentage change in the CPI from the end of the Reference Period to the
applicable Extension Term, (y) any change in the number of Policies in force or
differences in the Services requested by Triad under Article III and (z) any
other terms and conditions as may be mutually agreed by the Parties.

          (d) For the Special Services, Triad shall pay Company the amounts required pursuant to
Section 2.2.

          (e) If the Closing Date falls in the middle of the month, then the Service Fee for both the
first month and the first month following each anniversary will be prorated.

     5.2. Ongoing Maintenance Fees and Support Services Charges. During the Term,
Company shall manage and bear all costs associated with, and maintain in full force and effect,
(a) the Third Party agreements transferred to Company pursuant to the Purchase Agreement; (b)
new Third Party agreements procured as a replacement for a Third Party agreement that is not
assigned to or assumed by Company under the Purchase Agreement and (c) procurement, installation
and testing functions in connection with hardware components of the Triad Technology Platform
and Third Party technology as mutually agreed by the Parties pursuant to one or more Work Orders
or Change Orders. Nothing herein shall be deemed to obligate Company to procure or provide
maintenance for hardware or software which is no longer supported by the Third Party vendor or
which has been discontinued or is no longer commercially available (with the exception of
Company’s obligations under Schedule A with respect to Triad’s telephone system and the Mercator
software).

     5.3. Allocation of Charges. The determination of whether any Services shall be
characterized as Base Services (other than Technology Development Services) or as Technology
Development Services shall be made solely on the basis of the nature of the task to be performed
(e.g., maintenance versus software development resulting in new functionality) and without
regard to the job designation or training of the individual carrying out the applicable task.

     5.4. Adjustments to Annual Services Costs. The Parties acknowledge that
modifications of the Licensed Technology as a result of the performance of
Technology Development Services or Special Services may have the effect of increasing or

25

 

decreasing the costs to Company of performing the Base Services, including the costs of
maintenance of the Licensed Technology. Accordingly, upon either Party’s request (not more
frequently than annually), the Committee shall meet and confer on adjustments in the Annual
Services Costs as a result of the performance of Technology Development Services or Special
Services and shall promptly and in good faith, but subject to Section 5.1(c)(i), implement an
adjustment to the Annual Services Cost on a going-forward basis to reflect the fully-allocated
costs to Company of providing the Base Services.

     5.5. Invoices and Payment.

          (a) Unless earlier and/or more frequent invoicing is required for Tax or other purposes
under Applicable Law, within thirty (30) calendar days after the last day of the first month
after the Closing Date and each month of the Term thereafter, and within thirty (30) calendar
days after the last day of the Term, Company shall invoice Triad in arrears for the Service Fees
covering all Services provided in the immediately preceding calendar month, or a pro-rata
portion of such fees for any partial month (if applicable) together with applicable Taxes, if
any. Triad shall pay each such invoice, less any amounts disputed in writing, within fifteen
(15) calendar days of receipt.

          (b) If Triad in good faith disputes owing any amount stated on an invoice, it shall notify
Company in writing stating the amount of the Dispute and giving the reasons for the Dispute. The
Dispute shall be resolved pursuant to the provisions of Article XIII.

          (c) All payments by Triad under this Agreement shall be in U.S. dollars by electronic
transfer of immediately available funds to Company’s designated account.

     5.6. Invoices. Each separate component of the Services shall be itemized and
invoiced by Company. With each invoice, Company shall provide Triad with a reasonably-detailed
calculation of the applicable Service Fees and a breakdown of the Incremental Costs and other
charges included on such invoice.

     5.7. Tax Matters. Company shall be responsible for the reporting and payment of all
Taxes associated with the Services (including, without limitation, applicable withholding Taxes
with respect to Company Personnel to the extent accrued after the Closing Date) other than
Triad’s net income Taxes and sales, value-added or similar use taxes assessed to Triad on its
receipt or use of the Services. Each party agrees to indemnify and hold the other, its
Affiliates, stockholders, members, partners, managers, officers, directors, employees,
representatives, controlling persons, counsel, agents, successors and assigns (collectively, the
“Tax Indemnified Parties”) harmless from and against, and will pay to any Tax
Indemnified Party, the amount of any and all Losses incurred or suffered by any Tax Indemnified
Party arising out of or relating to
(including, but not limited to, interest assessed or penalty and reasonable attorneys fees
incurred) a party’s failure to pay its Taxes in accordance with this Section 5.7.

26

 

ARTICLE VI

SERVICE LEVEL STANDARDS; COMMITMENTS

     6.1. General. Company shall perform the Services in compliance with Applicable Laws
and in accordance with the Service Level Standards set forth in this Agreement or any Schedule,
Work Order or Change Order. The Services will be accessible and available to Triad between 7
a.m. and 7 p.m. Eastern time, Monday through Friday, except for Triad identified holidays
(“Business Hours”); provided, however, that the Core Applications will be
accessible and available to Triad twenty-four (24) hours per day, seven (7) days per week,
except for scheduled maintenance and repairs as described herein, including in each applicable
Schedule. Company will maintain telephone helpdesk support (the “Help Desk”) during
Business Hours for purposes of the Uptime Measurement Period, and shall furnish on call support
for outages occurring with respect to Services indicated as having a severity level of “1” on
the applicable Schedule, Work Order or Change Order on weekends, holidays and at all other times
when the Help Desk is not available. Each request for support services will promptly be assigned
a ticket number and be prioritized by Company in accordance with the guidelines set forth in a
Schedule, Work Order or Change Order with respect to individual Service categories (the
“Service Level Standards”). Except as otherwise set forth in the applicable Schedule,
Company shall respond to any request for support services within the time frame for the Service
or severity level (as indicated in the applicable Schedule, Work Order or Change Order).

     6.2. Uptime. Subject to the terms of Section 6.4, and any other exceptions agreed
in advance in writing by Triad, each Core Application shall be available for Triad’s use not
less than the percentage of the time (the “Uptime Percentage”) in any given calendar
month as set forth below.

 

	 	 	 
	Core Application

	 	Target Uptime Percentage
	 
	 	 
	MINT

	 	99% 
	 
	 	 
	TAXI servicing

	 	99% 
	 
	 	 
	E-mail

	 	99% 
	 
	 	 
	EZ Scan-QA

	 	The lesser of (x) 98.5% or (y)
the daily arithmetic average
Uptime Percentage during the
Service Grace Period
	 
	 	 
	Intranet access

	 	The lesser of (x) 98.5% or (y)
the daily arithmetic average
Uptime Percentage during the
Service Grace Period
	 
	 	 
	Internet access

	 	The lesser of (x) 98.5% or (y)
the daily arithmetic average
Uptime Percentage during the
Service Grace Period

27

 

The Uptime Percentage shall be calculated as follows:

where:

“n” is, with respect to the applicable Service, the total number of hours between 7 a.m.
and 7 p.m. Eastern Time on business days, excluding Triad-identified holidays (the
“Uptime Measurement Period”) in a given calendar
month less (a) mutually
agreed-upon scheduled maintenance hours, (b) hours during which a Force Majeure Event is
occurring without resolution, (c) hours during which the Service is not available due
entirely to the fault of a Company Third Party who is not in breach of its performance
under a contract, arrangement or understanding with Company that was included in the
Purchased Assets; and (d) hours during which a Service is not available due to the
failure of any equipment, software or system not tested by Triad after commercially
reasonable notice and request from Company to test such equipment, software or system,
in each case to the extent and only to the extent any such Force Majeure Event,
maintenance hours or unavailability occur during the Uptime Measurement Period or a
Latent Condition. Notwithstanding the foregoing, during the period commencing on the
last day of the Service Grace Period and ending on the last day of the immediately
subsequent calendar month, Company shall have the right, by delivering written Notice,
to have Uptime Percentage with respect to any or all Core Applications calculated with
“n” based on calendar hours (i.e., the number of hours in a calendar month) rather than
the hours between 7 AM to 7 PM, all other reductions to the definition of “n” in Section
6.2 remaining the same.

“x” is the Uptime Percentage (in any month in which a Service commences on any day
other than the first day of the month, the calculation of “x” shall be prorated); and

“y” is the total number of hours during the Uptime Measurement Period during which
the subject Service is not available in a given calendar month.

In addition to the amounts or credits due to Triad pursuant to Section 6.3, in the event that
Company fails, in any calendar month, to meet the Uptime Percentage with respect to any
individual Core Application, Triad will recover service credits specified below:

28

 

	 	 	 
	Difference between Actual	 	 
	Uptime Percentage and	 	 
	Target Uptime Percentage	 	Service Credits
	£  100 basis points

	 	0.5% 
	£  200 basis points >100 basis points

	 	1% 
	£  300 basis points >200 basis points

	 	2% 
	£  400 basis points >300 basis points

	 	3.5% 
	£  500 basis points >400 basis points

	 	5.% 
	>500 basis points

	 	Additional 1.5% for each additional 100
basis points

of the then-current monthly Service Fees (without regard to reductions as a result of
Service (“Service Credits”) or other off-set available pursuant to the Transaction
Agreements). If multiple Core Application outages in a calendar month are caused by one root
cause, then Company shall be assessed Service Credits on the Core Application that was
identified as the root cause and shall not be assessed a penalty on any other Core Application
in such calendar month..

     6.3. Failure to Meet Service Levels; Categorization of Service Level Failures.

          (a) In the event Company fails to deliver or perform the Services in accordance with the
Service Level Standards, Company shall investigate the root causes of the failure, report its
finding to Triad in writing and use diligent efforts to correct any deficiencies and prevent
recurrence. In the event Company fails to meet any Service Level Standards, whether in respect
to response time, resolution time, or any other material component of the Service Level
Standards set forth herein or any applicable Schedule, Work Order or Change Order, Triad will
recover the Service Credits measured as a percentage of Triad’s Service Fees (without regard to
reductions as a result of Service Credits) for the month in which the Failure occurs (which
Service Fees shall be deemed to be the greater of the actual amount or $150,000) as specified
herein. For purposes of categorizing Failures with respect to severity levels (and awarding
related Service Credits), any Failure that may reasonably be described or categorized in more
than one level of severity shall only be deemed a Failure as to the highest level of severity
applicable (with severity level “1” being the highest and severity level “3” being the lowest)
and shall not be counted as a Failure for any lower affected severity levels; accordingly, no
single Failure may be counted for Service
Credit purposes more than once except: (i) as contemplated in counting Severity 2
Failures and Severity 3 Failures as set forth in Section 6.3(c)(iii); and (ii) a Failure
affecting the Uptime Percentage may both (A) give rise to Service Credits related to the Uptime
Percentage and (B) be counted both as a Failure as contemplated by Section 6.3.

29

 

          (b) Severity 1 Failures. Unless otherwise set forth in an applicable Schedule or Work
Order, Triad shall accrue Service Credits in respect of Severity 1 Failures measured on a
monthly basis as follows:

	 	 	 
	Frequency of Severity Level 1 Failures	 	Service Credits as a
	(# times per Calendar Month;	 	Percentage of Monthly
	measured in the aggregate)	 	Service Fees
	1
	 	1.5%
	2
	 	3.0%
	3
	 	5.0%
	4
	 	   8%
	 	 	 
	Each additional Failure
	 	an additional 3% per failure

          (c) Severity 2 and Severity 3 Failures. Unless otherwise set forth in an applicable
Schedule or Work Order and subject to the terms and conditions set forth in this Article VI,
Triad shall accrue the Service Credits set forth below in each calendar month or series of
consecutive calendar months in which a Service Credit applies (each, a “Penalty Month”).
“Penalty Months” shall commence in the month immediately following a Broad Failure,
Chronic Failure or Long-Term Failure (as defined below), and shall continue for consecutive
calendar months until any or all such Broad Failures, Chronic Failures and/or Long-Term Failures
have been remediated in accordance with Section 6.3(c)(ii).

	 	 	 	 	 
	 	 	Service Credits as
	 	 	a Percentage of
	 	 	Monthly Service
	Penalty Months	 	Fees
	1st Penalty Month

	 	 	1	%
	2nd Penalty Month

	 	 	2	%
	3rd Penalty Month

	 	 	3	%
	4th and 5th Penalty Months

	 	 	5	%
	3 6th Penalty Month

	 	 	10	%

     (i) As used herein:

     (A) “Broad Failure” means, solely with respect to Severity
2 Failures and Severity 3 Failures, more than fifteen (15) Failures in
a single calendar month.

     (B) “Chronic Failure” means, solely with respect to
Severity 2 Failures and Severity 3 Failures, a Failure that occurs

30

 

twenty-five percent (25%) or more in connection with the performance of
a Frequent Service in a calendar month.

     (C) “Long-Term Failure” means, solely with respect to
Severity 2 Failures and Severity 3 Failures, a Failure that occurs in
connection with the performance of the same discrete Service during each
of at least four (4) consecutive calendar months.

     (ii) Remediation efforts by Company shall begin promptly upon Company’s
awareness of the existence of a Failure but no later than receipt of notice of a
Failure from Triad. Remediation is considered successful, and the charging of
Penalty Months shall cease, effective as of the end of the then-current month
(subject to re-commencement upon the occurrence of a subsequent Broad Failure,
Chronic Failure or Long-Term Failure) if: (A) the number of recurring Severity 2
Failures and Severity 3 Failures that contributed to the occurrence of a Broad
Failure is fewer than five (5) in such month, (B) the failure rate of any
Service giving rise to a Chronic Failure falls below five percent (5%) in such
calendar month, or (C) the failure rate of any Service giving rise to a
Long-Term Failure is zero (0) in such calendar month.

     (iii) For purposes of counting Severity 2 Failures and Severity 3 Failures
in determining whether a Broad Failure, Chronic Failure or Long-Term Failure
condition has occurred or has been remediated, (A) the Failure of an Infrequent
Service shall be counted upon such Failure and on the expiration of each
incremental resolution period after which such Failure remains unresolved, and
(B) the Failure of a discrete Frequent Service shall be counted only once per
required occurrence of the Service per calendar month, and the failure to
resolve such Failure prior to the beginning of each subsequent calendar month
shall be counted as another Failure unless such Failure occurred during the last
three business days of a calendar month, in which case the Failure shall not be
counted as an additional Failure on the first day of such subsequent calendar
month.

     6.4. Service Credit Limits; Carry-Forward. Service Credits available to Triad under
Sections 6.2 and 6.3 shall be limited to being applied to offset no more than 7.5% of Service
Fees that could be applied to Triad in each calendar month (without regard to reductions as a
result of Service Credits or other off-set available pursuant to the Transaction Agreements).
Notwithstanding anything herein to the contrary, in no event will Service Credits available to
Triad under Sections 6.2 and 6.3 exceed, in the aggregate, 10% of Service Fees that could
otherwise be charged to Triad in each calendar year (without regard to reductions as a result of
Service Credits or other off-set available pursuant to the Transaction Agreements). Company
shall give Triad prompt written notice if sufficient Failures and violations of the Uptime
Percentage have occurred such that the limit in the immediately preceding sentence will be used
to reduce Service Credits applied for the benefit of Triad, and Triad will have a period of
thirty (30) days from its receipt of such notice to terminate this Agreement by written notice
to Company,

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which termination shall have the effects contemplated by Article X. Unapplied Service Credits shall
be carried forward and applied against subsequent Company invoices for Services until the end of
the calendar year, at which time Unapplied Service Credits will be applied, at Triad’s option,
against remaining Service Fees (without regard to monthly limitations), applied against Transfer
Assistance Services (if applicable), or paid to Triad. Periodically as appropriate or as agreed in
each applicable Schedule, and at least once during each calendar year during the term of this
Agreement, the Parties may review the Service Level Standards and penalties in connection with
Failures and adjust them, if appropriate, pursuant to the process set forth in Section 3.3. Any
such mutually agreed-upon changes shall be documented pursuant to Section 15.2. In addition to any
other rights or remedies available to Triad at law or in equity or under this Agreement: (i)
Company shall be liable for any additional interest charges, late fees, penalties and fines imposed
by a Third Party and incurred by Triad as a result of a Failure; and (ii) Company shall remit such
interest, late fees, penalties, and other fines for such Failure as are set forth herein. The
payment of Service Credits as set forth above shall be offset against any damages awarded to Triad,
pursuant to Article XIII or otherwise, for losses incurred by
Triad; provided, however, that the
foregoing shall not limit any equitable remedy or relief sought by Triad.

     6.5. Service Grace Period. For the period of one hundred twenty (120) days
immediately following the Effective Date (the “Service Grace Period”) Company shall not
be required to pay, and Triad shall not receive, Service Credits with respect to the initial
Failures in each of the Exempt Services unless (a) there is a subsequent Failure with respect to
such discrete Exempt Service; or (b) there are six (6) or more Failures with respect to the
Exempt Services (in the aggregate). Company shall not be required to pay, and Triad shall not
receive, Service Credits related to the Uptime Percentage during the Service Grace Period with
respect to Core Applications unless such Uptime Percentage is less than ninety-seven percent
(97%); provided, that Company shall not be required to pay, and Triad shall not receive, any
Service Credits related to Internet, Intranet, or EZ Scan-QA during the Service Grace Period.

     6.6. Failure to Resolve Failure. The failure of Company to timely resolve Severity
1 Failure within fifteen (15) business days of such Failure, shall constitute a material breach
of this Agreement. In the event a Severity 1 Failure is unresolved for five (5) business days,
in addition to receiving the Service Level Credits set forth above and any other remedies
available to Triad, Triad may suspend any further payment for Services hereunder until such
Severity 1 Failure is resolved to Triad’s satisfaction. In the event a Broad Failure, Chronic
Failure or Long-Term Failure continues unremediated for six (6) months or more, Triad may
suspend any further payment for Services hereunder until such Broad Failure, Chronic Failure or
Long-Term Failure is resolved to Triad’s reasonable satisfaction.

     6.7. Reporting. Within one (1) week after the applicable month end process is
completed, Company shall compile and furnish to Triad an uptime report (consistent with the
uptime report provided by Triad to Essent) and a Help Desk report related to the monitoring of
Triad issues. Company shall communicate with Triad regarding open

32

 

ticket items as may be applicable. Within thirty (30) days of the Effective Date, the Parties
shall mutually develop a comprehensive monitoring report and briefing process allowing Triad to
monitor Help Desk activities. Company shall promptly inform Triad regarding the occurrence of,
and status of its actions to resolve any Failure with respect to the Services.

     6.8. Audit Review Rights. Subject to the standards set forth in the Schedules, Work
Orders or Change Order, Company shall provide information technology support to Triad to assist
in scheduled internal audits as well as external financial and regulatory audits as may be
necessary to conduct Triad’s run-off business. In addition, upon Triad’s request to Company,
providing reasonable prior notice and during Company’s normal Business Hours, Triad shall be
permitted from time to time to make inquiries of Company Personnel with respect to, and review,
Company’s help desk log, Team Track software and those specific records maintained by Company
for the purpose of monitoring its performance of the Services, Triad shall be permitted to
review specific Services in the event penalties are incurred related to such Service.

     6.9. Customer Service Business Review Rights. On a periodic basis, but in no event
more frequently than monthly, and upon reasonable notice from Triad, Company shall participate
in business review meetings (“Monthly Customer Service Meetings”) to discuss Customer
Service, performance under Service Level Standards and customer complaints, if any. Company
shall not be required to prepare reports or materials for the Monthly Customer Service Meetings.
In addition, on a quarterly basis Triad may review Company’s customer service processes and
practices for compliance with applicable Service Level Standards (“Quarterly Service
Review”). The Quarterly Service Review shall be scheduled in advance at a time mutually
convenient to the Parties which shall not interfere with peak periods of business activity
(e.g., month end). Triad shall be granted reasonable access to Company’s facilities and Company
Personnel for the purposes of conducting the Quarterly Service Reviews. Access to personnel will
be scheduled and limited so that it does not interfere with any one individual’s ability to
complete their normal responsibilities.

ARTICLE VII

PERSONNEL; SECURITY

     7.1. Personnel. Company shall have the sole and exclusive responsibility for
selecting and managing Company Personnel who provide the Services, and shall supervise them in
connection with the performance of Services; provided, that (a) Company Personnel shall
be qualified and experienced for the tasks to which they are assigned; and (b) during the Grace
Period, the Company shall assign to the Services primarily the same or similarly qualified
personnel as those who performed such tasks prior to the Closing Date, which personnel shall be
supervised by Triad-experienced managers. Triad acknowledges that such former Triad Personnel
who become Company Personnel are qualified to perform the Services. Except as set forth in the
Purchase Agreement, Company or its Affiliates shall pay and be responsible for all wages,
salary or other compensation, taxes, insurance and, except as expressly specified herein or in
any Schedule, Work Order or separate agreement, other costs and expenses with respect

33

 

to such Company Personnel. From time to time, Triad may request that Company Personnel be
removed from the Triad account if such Company Personnel violate the law or any safety or
security procedures of Triad, and Company will in good faith consider making such replacements
upon Triad’s reasonable written request.

     7.2. Policies and Procedures. To the extent that Company’s performance of its
obligations hereunder requires work on Triad’s premises, Company Personnel, while on the
premises of Triad, shall comply with all of Triad’s reasonable and customary office rules,
regulations and standards for security, so long as such rules are disclosed in advance to
Company and Company Personnel. Company shall perform its obligations in a manner that does not
interfere with the operation of Triad’s business, and shall confine all equipment, apparatus,
materials and operations to limits indicated by the proper representative of Triad, and Company
shall not unnecessarily encumber Triad’s premises with equipment or materials.

     7.3. Resources. Subject to Triad’s prior approval and consent, Company may use
Triad’s facilities and, if appropriate, Triad’s equipment (including without limitation,
computer resources and technical information) to provide the Services during authorized hours.
Company’s use of and access to Triad’s facilities shall be limited to those facilities
reasonably required to render the Services set forth herein. Triad shall be exclusively
responsible for the maintenance of such equipment unless such maintenance is included within the
Services.

     7.4. On-Site Performance Obligations. To the extent that Company performs Services
on-site at any Triad location, Company shall:

          (a) use commercially reasonable efforts to comply with and to ensure that Company Personnel
comply with:

     (i) Applicable Law;

     (ii) all of Triad’s work and safety rules set forth in applicable Triad
safety manuals and policies to the extent furnished in advance to Company, as
the same may be updated and amended by Triad from time to time;

     (iii) all of Triad’s security rules to the extent furnished in advance to
Company, including without limitation, rules requiring that: (A) any instances
of impropriety, theft or loss involving Company or any Company Personnel shall
be immediately reported to Triad as well as to the appropriate law enforcement;
and (B) all locking hardware, keys, etc., needed by Company for office doors
shall be provided by Triad, and all keys and locking hardware shall remain the
property of Triad. Keys shall be provided to Company in the discretion of Triad
and to the extent appropriate; and

34

 

     (iv) any reasonable instructions and guidelines issued by Triad from time
to time and made known to Company.

          (b) comply with Triad security and background checks including, without limitation,
performing at Company expense background screening, drug screening and reference checks on all
Company Personnel (other than the Transferred Employees) who will be working on-site at Triad
(i) continuously for ten (10) days or more, or (ii) for less than ten (10) days and will have
access to sensitive information, in each case accordance with Applicable Laws and Triad’s
pre-employment screening policy to the extent such policies are furnished in writing in advance
to Company;

          (c) use commercially reasonable efforts to ensure that all of Company Personnel will be
appropriately qualified and experienced to undertake their tasks and will use professional skill
and care no less than that taken by Company in the conduct of its own similar information
technology activities; and

          (d) maintain in effect such Third Party licenses or other agreements to which Company is a
party and which are required by Company to provide the Services using the Triad Technology
Platform at either Party’s facilities.

     7.5. Mutual Performance Obligations. Each Party shall use commercially reasonable
efforts to ensure that:

          (a) it provides, in the case of Company, Company Personnel, or in the case of Triad, Triad
Personnel, with the training and skills as is reasonably required in Company’s judgment to
enable Company to perform the Services in accordance with the provisions of this Agreement;

          (b) it informs the other Party promptly in the event that such Party becomes aware of any
circumstances, whether or not the result of any act or omission on the part of such Party or its
approved subcontractors, which may prevent the other Party from fulfilling its obligations in
accordance with this Agreement and, to the extent known to such Party, provides reasonable
details as to the nature, extent and duration of the potential problem; and

          (c) it does not at any time knowingly introduce any computer virus or other contamination
or unauthorized computer code onto the system or any other equipment (including any computer
hardware or software) which is either owned or used by the other Party in connection with its
obligations under this Agreement.

     7.6. Suspected Breaches. Each Party shall promptly notify the other Party of any
actual, probable or reasonably suspected breach of security of the Party’s systems and of any
other actual, probable or reasonably suspected unauthorized access to or acquisition, use, loss,
destruction, compromise or disclosure of any of the other Party’s
Confidential Information which such Party becomes aware, including without limitation
unauthorized access to or acquisition of any Personally Identifiable Information (each, a
“Security Breach”). In any notification to the other Party required under this Section 7.6,

35

 

each Party shall designate a single individual employee who must be available to the other Party
during and after the usual Business Hours as a contact regarding such Party’s obligations under
this Section 7.6. Each Party shall reasonably cooperate with the other Party in investigating,
remedying and taking any commercially reasonable action the other Party requests regarding any
Security Breach and any dispute, inquiry or claim that concerns the Security Breach. Unless
prohibited by an Applicable Law or court order, each Party shall also notify the other Party of
the receipt of any legal process from any Third Party relating to any Security Breach,
including, but not limited to, any legal process initiated by any Governmental Body.

     7.7. IT Security Penetration Audits and Analysis. Company shall procure or conduct
annual security penetration audits of Company systems the timing, which audits (a) shall be
conducted in conformity with timeframes agreed upon by the Parties; (b) may be conducted
internally or by an independent Third Party; and (c) shall be conducted or procured by Company
at no additional cost to Triad. Company shall provide Triad with an oral summary of the
preliminary results of each such audit (only to the extent related to the Services provided to
Triad) within five (5) business days of completing such audit, which summary shall include (to
the extent feasible) (x) whether the audit revealed any material vulnerability in Company
systems which could result in unauthorized access to or acquisition, use, loss, destruction,
compromise or disclosure of Triad’s Confidential Information or might reasonably be expected to
have an adverse impact on the Services; and (y) if so, the nature of each material vulnerability
discovered. Company shall provide Triad with a written summary of each final audit report within
five (5) business days of its receipt of such report, which summary shall include (x) whether
the audit revealed any material vulnerability in Company systems which could result in
unauthorized access to or acquisition, use, loss, destruction, compromise or disclosure of
Triad’s Confidential Information or might reasonably be expected to have an adverse impact on
the Services; and (y) if so, the nature of each material vulnerability discovered. If the audit
reveals one or more material vulnerabilities, Company shall correct each such vulnerability at
its sole cost and expense and shall certify in writing to Triad that it has corrected all such
vulnerabilities. Company shall provide to Triad a resolution plan within ten (10) days of
receipt of the report which shall provide a timeframe to cure, which timeframe shall be no
longer than 60 days unless the complexity of the issue or performance of a Third Party outside
the control of Company makes such timeframe unreasonable, in which event a commercially
reasonable timeframe shall be presented. Company’s failure to procure the audits or to complete
corrections in a timely manner will be a breach of the Agreement.

     7.8. Training. To the extent reasonably necessary and mutually acceptable to the
Parties, Company shall make Company Personnel, and Triad shall make Triad Personnel available to
provide formal training with respect to the Services, at times and locations mutually agreed
upon by the Parties. Any hours provided by Company for such training shall be deducted from the
allocated Technology Development Services time under Section 2.1(e).

36

 

ARTICLE VIII

SUBCONTRACTORS

     8.1. Subcontractors. Company may contract with qualified Affiliates or Third
Parties to provide any or all Services.

     8.2. Subcontractor Payments. Company shall remain fully responsible for its
performance of this Agreement in accordance with its terms, including any obligations it
performs through Affiliates and those Third Parties with which Company has contracted to provide
the Services (“Company Third Parties”), and Company shall be solely responsible for all
payments due to Company Third Parties.

ARTICLE IX

TERM

     9.1. Term.

          (a) This Agreement shall become effective as of the Effective Date and, unless earlier
terminated as hereinafter provided, shall continue through the fifth (5th)
anniversary hereof (the “Initial Term”), at which time this Agreement shall be
automatically extended for successive one-year terms (each, an “Extension Term”, and
together the Initial Term and any Extension Terms are the “Term”), unless Triad provides
Company with notice of its intention not to extend the Term at least ninety (90) days prior to
the expiration of the Initial Term or any Extension Term, and provided further that no Extension
Term shall continue past the tenth (10th) anniversary hereof without the mutual
consent of the Parties.

          (b) During the ninety (90) days immediately preceding the end of the Initial Term and each
Extension Term (or such other period as the Parties shall mutually agree), the Parties shall
negotiate in good faith to determine the terms and conditions of a mutually agreeable
transaction structure resulting in the acquisition by Company or one of its Affiliates of TGIC’s
remaining assets and liabilities (a “Fundamental Transaction”). The Parties agree that
in satisfying the standard of good faith required by the immediately preceding sentence, a Party
may consider the relative interests of any constituencies it determines to be appropriate
(including, without limitation, the interests of its shareholders, policyholders, employees and
customers). Except as set forth in the Schedules, Company shall commence providing all Services
on the Closing Date. Subject to the terms and conditions hereof and except as set forth in the
Schedules and Section 2.8 hereof, Company shall provide each Service for the entire Term.

ARTICLE X

TERMINATION; EFFECT OF TERMINATION

37

 

     10.1. Termination of Agreement.

          (a) This Agreement shall terminate upon the expiration of the Initial Term or any Extension
Term if Triad has provided a timely notice of its intention not to extend the Term pursuant to
Section 9.1(a).

          (b) This
Agreement shall terminate automatically on the tenth
(10th) anniversary
hereof.

          (c) This Agreement shall terminate upon the closing of a Fundamental Transaction.

          (d) This Agreement will terminate automatically ninety (90) days following a Release Event.

          (e) Company may terminate this Agreement in the event of a breach by Triad or its
Affiliates of the Non-Solicitation provision set forth in Section 5.8(a)(i) of the Purchase
Agreement.

          (f) Either Party may terminate this Agreement based on a material breach by the other Party
after providing the other Party with at least sixty (60) days prior written notice and a
reasonable opportunity to cure such breach within such 60-day period. A termination pursuant to
this Section shall be effective immediately following the expiration of the 60-day cure period
described above.

          (g) Triad may terminate this Agreement as contemplated by Section 6.4.

     10.2. Effect of Termination. Upon termination or expiration of this Agreement:

          (a) Effective immediately upon the termination date, Triad shall have no further obligation
to pay the Service Fees with respect to such Service for any periods commencing on or after the
termination date, with the exception of amounts payable for any applicable Transfer Assistance
Services in accordance with Section 10.3. Triad shall, however, pay all Service Fees with
respect to such Service to the extent such Service Fees accrued prior to the termination date
and would otherwise have been payable by Triad in the event the Service had not been terminated.

          (b) Company shall perform its obligations under Section 10.3 below unless this Agreement is
terminated pursuant to Section 10.1(c) as a result of a Fundamental Transaction involving
Company or its Affiliate as the buyer or by Company under Section 10.1(e) or (f) as a result of
Triad’s material breach of the terms of this Agreement.

          (c) Prior to or upon completion of the Transfer Assistance Services, Company shall deliver
to Triad: (i) a written report describing the current state of the
Services to be provided by Company under this Agreement and all Schedules and Work Orders
then in effect; and (ii) all Triad Confidential Information in its possession together

38

 

with a certification that all Triad Confidential Information has been removed from Company’s
systems, premises or control. Company, however, shall have the right to keep an archival copy of
its records related to the performance of the Services, subject to the confidentiality
provisions of this Agreement.

     10.3. Transfer Assistance.

          (a) Upon termination of this Agreement for any reason other than as specified in Section
10.2(b), the Parties shall cooperate with each other in good faith and shall use their
commercially reasonable efforts to prepare as expeditiously as practical a written exit plan
(the “Exit Plan”) that sets forth in reasonable detail the schedule, steps, tasks, work,
services and deliverables to be provided by each Party and to be procured from Third Parties in
order to effect an orderly and expeditious release of the Escrowed Material and transition of
the Services then being used by Triad from Company to Triad or to Triad’s Third Party designee
(the “Transfer Assistance Services”); provided, that if this Agreement is
terminated by Triad pursuant to Section 10.1(f) or (g) or by Triad upon a Release Event of the
type specified in clauses 4(c)-(f) of the definition of Release Event in the Technology Escrow
Agreement, Triad may resolve any disputes between the Parties with respect to the terms of the
Exit Plan and the amount or scope of Transfer Assistance Services to be provided by either Party
in accordance with Article XIII. The Exit Plan shall include: (x) details of Company Personnel
and other resources that will be engaged for the Transfer Assistance Services, together with any
resources required from Triad and/or its successor provider; and (y) subject to Section 10.3(b),
a timetable, process and specific critical testing protocols and controls for providing the
Transfer Assistance Services.

     (i) Unless the Parties otherwise agree in connection with the Exit Plan,
the Transfer Assistance Services to be provided in connection with a termination
of this Agreement pursuant to Sections 10.1(a), 10.1(b) or 10.1(d) shall (A)
commence three (3) months prior to the expiration of this Agreement, and (B)
continue for up to three (3) months following the effective date of the
termination of this Agreement.

     (ii) Unless the Parties otherwise agree in connection with the Exit Plan,
the Transfer Assistance Services to be provided in connection with a termination
of this Agreement pursuant to Section 10.1(f) or Section 10.1(g) shall (A)
commence upon notice of termination, and (B) continue for up to three (3) months
following the effective date of such termination.

          (b) If this Agreement is terminated by Triad pursuant to Section 10.1(f) or 10.1(g) or by
Triad upon a Release Event of the type specified in clauses 4(c)-(f) of the definition of
Release Event in the Technology Escrow Agreement then (i) Company shall be solely responsible
for the payment of (A) all salaries, compensation, benefits and other internal general and
administrative costs and costs of Company Personnel associated with performance of the Transfer
Assistance Services
by Company as set forth in the Exit Plan; and (B) all out-of-pocket fees, costs, expenses
and other

39

 

amounts reasonably incurred by either Party and payable to a Third Party in conjunction with the
implementation and completion of the Exit Plan and all Transition Assistance Services to be
provided by either Party under the Exit Plan, including obtaining, configuring,
implementing, testing and launching the latest version of the Escrowed Material but
excluding fees associated with purchasing or otherwise obtaining licenses or service
contracts from Third Parties or hardware costs; and (ii) Triad shall be solely responsible for
the payment of all salaries, compensation, benefits and other internal general and
administrative costs of Triad Personnel associated with performance of the Transfer Assistance
Services by Triad as set forth in the Exit Plan. Company’s aggregate costs for expenses under
subsection b(i)(b) above shall in no event exceed (a) $400,000 for internal costs for
programmer/analyst time at the FTE Rate; and (b) $400,000 for Third Party costs, provided that
in the event Third Party costs exceed $400,000 Company and Triad shall split such costs in
excess of $400,000 equally.

          (c) Except as provided in Sections 10.2(b) and 10.3(b), if this Agreement is terminated
pursuant to Sections 10.1(a), 10.1(b) or 10.1(d), then (1) Triad shall be solely responsible for
the payment of (A) all salaries, compensation, benefits and Company Personnel associated with
performance of the Transfer Assistance Services by Company as set forth in the Exit Plan at a
mutually acceptable rate not to exceed one hundred ten percent (110%) of the FTE Rate in effect
immediately prior to the termination date; and (B) all out-of-pocket fees, costs, expenses and
other amounts reasonably incurred by either Party and payable to a Third Party in conjunction
with the implementation and completion of the Exit Plan and all Transition Assistance Services
to be provided by either Party under the Exit Plan, including obtaining, configuring,
implementing, testing and launching the latest version of the Escrowed Material and any
associated Third Party software and hardware costs, and (2) Triad shall be solely responsible
for the payment of all salaries, compensation, benefits and other internal general and
administrative costs of Triad Personnel associated with performance of the Transfer Assistance
Services by Triad as set forth in the Exit Plan.

          (d) At Triad’s request, the Transfer Assistance Services to be provided by Company shall be
provided to Triad’s Third Party designee in lieu of providing such Transfer Assistance Services
directly to Triad, subject to such designee entering into a confidentiality agreement with
Company which is reasonably satisfactory to Company. Company shall use commercially reasonable
efforts to provide continuity of service to Triad’s end users during the period in which the
Transfer Assistance Services are to be provided as contemplated by Section 10.3(a)(i)-(ii).

          (e) Company shall provide Transfer Assistance Services hereunder to Triad and any successor
in interest to all or substantially all of Triad’s assets in connection with a transaction
resulting in the acquisition by one or more Persons of TGIC’s remaining assets and liabilities,
and the costs and expenses of such Transfer Assistance Services shall be borne by Triad and/or
its successor on the same basis as
provided in Section 10.3(c); provided, that such costs and expenses shall be borne
by Company in the event of a Fundamental Transaction.

40

 

     10.4. Equitable Remedies. Company acknowledges that, in the event it breaches its
obligation to provide Transfer Assistance Services to Triad as provided in this Article X, Triad
will be irreparably harmed. In such a circumstance, Triad may proceed directly to court and, in
such event, the provisions of Article XIII shall not apply.

     10.5. Survival. Along with the definitions, the following provisions will survive
any expiration or termination of this Agreement: Article X (“Termination; Effect of
Termination”), Article XI (“Indemnification”); Article XII (“Records;
Access”); Article XIII (“Governance and Dispute Resolution”); Article XIV
(“Insurance”); and Article XV (“Miscellaneous”).

ARTICLE XI

INDEMNIFICATION; LIMITATION OF REMEDIES

     11.1. Indemnification of Company by Triad. Triad shall indemnify and hold harmless
Company, its Affiliates, stockholders, members, partners, managers, officers, directors,
employees, representatives, controlling persons, counsel, agents, successors and assigns
(collectively, the “Company Indemnified Parties”) from and against, and will pay to any
Company Indemnified Party the amount of any and all Losses incurred or suffered by any of
Company Indemnified Parties, arising out of or relating to: (a) any violation by Triad of any
Applicable Law; and (b) all claims for bodily injury to persons or physical damage to tangible
personal or real property for which Triad is liable to a Third Party, except to the extent
caused by the negligence or intentional misconduct of Company Indemnified Parties.

     11.2. Indemnification of Triad. Company shall indemnify and hold harmless Triad,
its Affiliates, stockholders, members, partners, managers, officers, directors, employees,
representatives, controlling persons, counsel, agents, successors and assigns (collectively, the
“Triad Indemnified Parties”) from and against, and will pay to any Triad Indemnified
Party the amount of, any and all Losses incurred or suffered by any of the Triad Indemnified
Parties, arising out of or relating to: (a) any violation by Company of any Applicable Law; (b)
all claims for bodily injury to persons or physical damage to tangible personal or real property
for which Company is liable to a Third Party, except to the extent caused by the negligence or
intentional misconduct of Triad Indemnified Parties; (c) any breach of any covenant of Company
to provide or pay for Transition Assistance Services under Article X; and (d) any Third-Party
Claim that the use of Company Intellectual Property (excluding any Triad Intellectual Property
included in the Purchased Assets, including without limitation the Triad Technology Platform and
the Initial Escrowed Material) in the provision of Services or use of any other materials
provided by Company pursuant to this Agreement infringes the Intellectual Property Rights of
such Third Party.

     11.3. Defense of Claims. If a claim for Losses (a “Claim”) is to be made by
a Company Indemnified Party or a Triad Indemnified Party (an “Indemnified Party”),
such Indemnified Party shall give notice (a “Claim Notice”) to (a) Triad, in the
case of an indemnification claim pursuant to Section 11.1 or (b) Company, in the case of an
indemnification claim pursuant to Section 11.2 (the “Indemnifying Party”), in either
case

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as soon as practicable after such Indemnified Party becomes aware of any fact, condition or
event which may reasonably give rise to Losses for which indemnification may be sought under
this Article XI; however, the failure of any Indemnified Party to give timely notice hereunder
shall not affect rights to indemnification hereunder, except to the extent the Indemnifying
Party is actually prejudiced by such failure (to the extent determined by a court of competent
jurisdiction). If any Proceeding is filed or instituted making a Claim against any Indemnified
Party with respect to a matter subject to indemnity hereunder, notice thereof shall be given to
the Indemnifying Party as promptly as practicable; however, the failure of any Indemnified Party
to give timely notice hereunder shall not affect rights to indemnification hereunder, except to
the extent the Indemnifying Party is actually prejudiced by such failure (to the extent
determined by a court of competent jurisdiction). After receipt of such a notice of a
Proceeding, the Indemnifying Party shall have the right to defend the Indemnified Party against
the Proceeding at the Indemnifying Party’s expense with counsel of its choice reasonably
satisfactory to the Indemnified Party, unless the nature of the Claim creates an ethical
conflict or otherwise makes it inadvisable for the same counsel to represent the Indemnified
Party and the Indemnifying Party, so long as (i) the Indemnifying Party notifies the Indemnified
Party in writing within fifteen (15) days after the Indemnified Party has given notice of the
Claim or Proceeding that the Indemnifying Party will indemnify the Indemnified Party from and
against the entirety of any Losses the Indemnified Party may suffer resulting from, arising out
of, relating to, in the nature of, or caused by the Claim or raised in the Proceeding, (ii) the
Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the
Indemnified Party that the Indemnifying Party will have the financial resources to defend
against the Proceeding and fulfill its indemnification obligations hereunder, (iii) the
Proceeding involves only a Claim for money damages and no other relief and (iv) the Indemnifying
Party conducts the defense of the Proceeding actively and diligently. The Indemnifying Party
shall not compromise or settle any such Proceeding without the prior written consent of the
Indemnified Party (such consent not to be unreasonably withheld or delayed) or enter into any
settlement negotiations in connection with such Proceeding without giving prior written notice
to the Indemnified Party. In all other cases the Indemnified Party may defend the Claim or
Proceeding with counsel of its choosing at the expense of the Indemnifying Party. The
Indemnified Party may, at its own cost, participate in the investigation, trial and defense of
any such Proceeding defended by the Indemnifying Party and any appeal arising therefrom and
employ its own counsel in connection therewith. The Parties shall cooperate with each other in
connection with any defense and in any notifications to insurers. If the Indemnifying Party
fails to promptly and diligently assume the defense of such Proceeding after receipt of notice
hereunder, the Indemnified Party against which such Claim has been asserted shall (upon
delivering notice to such effect to the Indemnifying Party) have the right to undertake the
defense, compromise or settlement of such Proceeding with counsel of its own choosing at the
expense of the Indemnifying Party and the Indemnifying Party shall have the right to participate
therein at its own cost. Losses shall be paid within five (5) business days of the final
determination of the merits and amount of a Claim.

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     11.4. Mitigation. The Indemnified Parties shall use their reasonable best efforts
to mitigate any claim or liability that any Indemnified Party asserts or is reasonably likely to
assert pursuant to this Article XI. In the event that an Indemnified Party shall fail to use
such reasonable best efforts to mitigate any such claim or liability, then notwithstanding
anything contained in this Agreement to the contrary, the Indemnifying Party shall not be
required to indemnify any Indemnified Party for that portion of any Losses that could reasonably
be expected to have been avoided if all Indemnified Parties had made such efforts.

     11.5. LIMITATION OF REMEDIES; DISCLAIMER OF CONSEQUENTIAL DAMAGES. TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW (I) EACH PARTY AND ITS AFFILIATES, AND THEIR RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES AND SUBCONTRACTORS, WILL NOT BE LIABLE TO THE OTHER PARTY FOR ANY
LOST PROFITS, LOSS OF DATA, LOSS OF USE, BUSINESS INTERRUPTION OR OTHER SPECIAL, INCIDENTAL,
INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY,
ARISING FROM THE PERFORMANCE OF, OR RELATING TO, THIS AGREEMENT REGARDLESS OF WHETHER SUCH
PARTY, ITS AFFILIATES OR THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND SUBCONTRACTORS HAVE
BEEN NOTIFIED OF THE POSSIBILITY, OR THE FORESEEABILITY, OF SUCH DAMAGES, AND (II) EACH PARTY’S,
ITS AFFILIATES’ AND THEIR RESPECTIVE OFFICERS’, DIRECTORS’, EMPLOYEES’ AND SUBCONTRACTORS’
MAXIMUM AGGREGATE LIABILITY HEREUNDER (EXCLUSIVE OF TRANSFER ASSISTANCE OBLIGATIONS UNDER
ARTICLE X) SHALL NOT EXCEED AN AMOUNT EQUAL TO THE TOTAL FEES PAID BY TRIAD TO COMPANY UNDER
SECTION 5.1 FOR THE 12 MONTH PERIOD IMMEDIATELY PRECEDING THE BREACH.

ARTICLE XII

RECORDS; ACCESS

     12.1. Records. Company shall prepare and maintain records with respect to the
Services it performs that are in a form and contain a reasonable level of detail similar to the
records, if any, that were prepared and maintained by Triad with respect to the Services in the
conduct of Triad’s business prior to the Closing Date (and in any event consistent with
Applicable Law), for a period of seven (7) years after the termination of this Agreement or such
longer period as is required by Applicable Law. Company shall also maintain records in
accordance with Applicable Law and generally accepted accounting principles to substantiate
Third Party charges incurred by Company and borne by Triad under this Agreement for a period of
seven (7) years from the date of termination of this Agreement. During the period in which the
Company is required to maintain such records, upon prior written request to the Company, Triad
shall have reasonable access to review and copy such records during normal Business Hours of the
Company or its applicable Affiliate at the place where such records are normally

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maintained. For avoidance of doubt, Company shall have no obligations under this Section 12.1
with respect to the Triad back-up tapes made prior to the Effective Date.

     12.2. Access to Books, Records, Personnel. During the Term of this Agreement and
for a period of eighteen (18) months after termination of this Agreement for any reason, each
Party shall permit the other Party and its employees, auditors and other representatives to have
reasonable access, during normal Business Hours and upon reasonable advance notice, to
appropriate personnel of the other Party, to the extent such access is reasonably requested by a
Party in order to permit the evaluation of, and any required reporting, certifications and
attestations with respect to, internal controls, processes and systems in connection with the
provision of the Services for purposes of compliance with the Sarbanes-Oxley Act of 2002. A
Party engaging any independent Third Party to exercise its rights under this Section 12.2 shall
require such Third Party to execute a written confidentiality agreement which is no less
restrictive than the confidentiality provisions of this Agreement.

ARTICLE XIII

GOVERNANCE AND DISPUTE RESOLUTION

     13.1. Steering Committee. The Parties shall form a services management steering
committee (the “Committee”) consisting of two (2) members. Each Party shall be permitted
to designate a member of the Committee and shall notify the other Party of such designee;
provided, that each Party’s designee shall have extensive knowledge, skills and experience with
respect to the Services to be provided hereunder. Subject to the immediately preceding sentence,
either Party may, from time to time, remove or replace its designee on the Committee by notice
to the other Party. The Committee shall be responsible for: (a) the execution and general
management of each Service to be provided pursuant to this Agreement; (b) administering the
Project List as from time to time modified by Triad pursuant to Section 2.2(d); and (c)
fulfilling any such other roles and responsibilities as the Parties may determine necessary from
time to time. The Committee (together with other advisors, consultants and employees) shall meet
and/or otherwise communicate (including via conference call) as frequently as is necessary to
carry out these responsibilities, but not less frequently than once per month. The Committee
shall develop policies and procedures for formally documenting decisions of the Committee, and
all such decisions shall be binding on the Parties. The initial Committee members are:

     For Triad: Stephen Haferman

     For Company: Bill Kaiser

     13.2. General Communications Regarding Services. The Parties shall each appoint a
person who shall be available to act as the primary contact person with respect to each Service
who shall receive communications and coordinate responses to questions and concerns on behalf of
the respective Parties and their Affiliates with
respect to such Service (the “Level 1 Contact”). Each Level 1 Contact shall be
required to have appropriate knowledge, skills and experience with respect to the applicable
Service in

44

 

order to fulfill such person’s responsibilities hereunder. In addition, the Parties shall each
appoint a person who shall be available to act as the primary contact person with respect to the
escalation of communications beyond the Level 1 Contacts as contemplated by Section 13.3 (the
“Level 2 Contact”). Each Level 2 Contact shall be required to have appropriate
knowledge, skills and experience with respect to the applicable Service in order to fulfill such
person’s responsibilities hereunder. Subject to the requirements of this Section 13.2, either
Party may, from time to time, remove or replace its Level 1 Contact and/or Level 2 Contact with
respect to a Service by notice to the other Party. To promote efficiency and good communication
between the Parties and effective Dispute resolution procedures, the Parties will use reasonable
efforts to cause their employees and representatives to coordinate general communications
regarding the Services through the appropriate Level 1 Contacts and will escalate issues
regarding the Services to the appropriate Level 2 Contacts. Notwithstanding the provisions of
this Article XIII, in the event of any emergency relating to any Service, a Party shall attempt
to contact the Single Point of Contact of the other Party, but may also directly contact that
person most able to resolve the emergency expeditiously. Each Party hereby designates its
initial Level 1 Contacts and initial Level 2 Contacts as set forth on Schedule E.

     13.3. Initial Resolution of Disputes. Except with respect to injunctive relief
described below, any dispute, controversy, claim or difference of any kind between the Parties
arising out of or relating to this Agreement, or the breach thereof, which shall include any
challenge or dispute as to the quality of performance or payment for any Service hereunder
(“Dispute”), shall attempt to be settled first, by good faith efforts of the Parties to
reach mutual agreement in accordance with this Sections 13.3 and 13.4 and, second, if mutual
agreement is not reached to resolve the Dispute, by final, binding arbitration as set forth in
Section 13.5. The Level 1 Contacts shall meet as often as reasonably necessary in an effort to
resolve Disputes without the necessity of any formal proceeding relating thereto. If the Level 1
Contacts do not resolve a Dispute within five (5) calendar days, then either Party may escalate
the Dispute to its Level 2 Contacts by sending written notice to the other Party with a summary
of the controversy and indication that such Dispute is being escalated to the Level 2 Contacts.
If the Level 2 Contacts do not resolve a Dispute within five (5) calendar days, then either
Party may escalate the Dispute to its Senior Executive Officer by sending written notice to the
other Party with a summary of the controversy and a request to initiate the Dispute resolution
procedure described in Section 13.4. The foregoing requirements and limitations shall not,
however, prevent a Party from: (a) seeking injunctive relief in circumstances permitted by this
Agreement; or (b) terminating this Agreement (in whole or in part) in accordance with Section
10.1.

     13.4. Escalation. Each Party’s Senior Executive Officer shall have the authority to
meet and to negotiate in good faith to resolve the Dispute and to settle the Dispute. The
discussions shall be left to the discretion of the representatives who may utilize other
alternative Dispute resolution procedures such as mediation to assist in the negotiations.
Discussions and correspondence among the representatives (including Level 1 Contacts and Level 2
Contacts) for purposes of the negotiations contemplated
by Sections 13.3 and 13.4: (a) shall be treated as confidential information under the
Confidentiality Agreement

45

 

developed for purposes of settlement; (b) shall be exempt from discovery and production; and (c)
shall not be admissible in the arbitration described below or in any lawsuit pursuant to Rule
408 of the Federal Rules of Evidence. Documents identified in or provided with such
communications, which are not prepared for purposes of the negotiations, are not so exempted and
may, if otherwise admissible, be admitted in evidence in the arbitration or lawsuit. The Parties
agree to pursue resolution under this subsection for a minimum of twenty (20) days before
requesting arbitration. If such Dispute cannot be resolved by the Senior Executive Officers of
the Parties within thirty (30) days after initiation of discussions, either Party may initiate
formal proceedings as permitted by Section 13.5 below.

     13.5. Arbitration.

          (a) If the Dispute is not resolved under Sections 13.3 and 13.4 within thirty (30) days of
the initial written notice, either Party may demand arbitration by sending written notice to the
other Party, and the Dispute shall be finally settled by an arbitral tribunal (the
“Tribunal”) under the JAMS Comprehensive Arbitration Rules and Procedures as in force at
the time such arbitration is commenced, except as provided below. The Tribunal shall apply the
law of the State of New York in the arbitration proceedings.

          (b) The Tribunal shall consist of three (3) arbitrators. Company, on the one hand, and
Triad, on the other hand, shall each nominate an arbitrator within fourteen (14) days of the
request for arbitration. If Company or Triad fails to nominate an arbitrator, JAMS shall appoint
such arbitrator within seven (7) days of notice of a Party’s failure to appoint an arbitrator
within the required period. Following their selection, the two (2) Party-nominated arbitrators
shall together agree upon the nomination of the third (3rd) arbitrator within thirty (30) days
after the nomination of the second arbitrator. If the two (2) Party-nominated arbitrators are
unable to agree on the nomination of the third arbitrator within the thirty (30) day period,
JAMS shall appoint the third arbitrator within seven (7) days of notice of the Parties’
inability to agree on a third (3rd) arbitrator within the required period. The third (3rd)
arbitrator, however appointed, shall serve as Chairman of the Tribunal.

          (c) The site of the arbitration shall be New York, New York and the arbitration proceedings
shall be conducted exclusively in English. The arbitration proceedings shall be confidential.
All disputes concerning or relating to arbitrability of disputes under this Agreement or the
jurisdiction of the arbitrators shall be resolved in the first instance by the arbitrators.

          (d) The award shall be rendered in writing and shall set forth in reasonable detail the
facts of the dispute and the reasons for the Tribunal’s decision. In the award, the Tribunal
shall apportion the costs and expenses of the arbitration. The award rendered in any arbitration
commenced hereunder shall be final and conclusive and binding upon the Parties upon the date it
is rendered. The Parties hereto undertake
to implement any award rendered by the Tribunal and judgment upon the award may be entered
in any court of competent jurisdiction.

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          (e) The arbitrators are authorized to consolidate multiple Disputes between the parties to
the Transaction Agreements where efficient and appropriate.

          (f) Either Party may make an application to the arbitrators seeking injunctive relief until
such time as the arbitration award is rendered or the Dispute is otherwise resolved. Either
Party may apply to any court having jurisdiction hereof and seek injunctive relief until such
time as the arbitrators are available to consider the request for injunctive relief.

     13.6. Accrual of Service Credits During Any Dispute. The accrual of Service
Credits, with respect to the specific Services that are the subject of a Dispute, shall continue
during the pendency of any Dispute pursuant to this
Article XIII; provided, that Service Credits
with respect to such disputed Service shall not be applied against Service Fees unless the
Dispute is resolved in Triad’s favor or otherwise required as part of the resolution of such
Dispute.

ARTICLE XIV

INSURANCE

     14.1. Coverage. During the Term of this Agreement, each Party shall obtain and
maintain the following insurance: (a) Commercial General Liability, including coverage for (i)
premises/operations, (ii) independent contractors, (iii) products/completed operations, (iv)
personal and advertising injury, (v) contractual liability and (vi) explosion, collapse and
underground hazards, with combined single limit of not less than five million dollars
($5,000,000.00) for each occurrence or its equivalent; (b) Worker’s Compensation in amounts
required by Applicable Law and Employer’s Liability with a limit of at least one million dollars
($1,000,000.00) for each accident; and (c) Automobile Liability including coverage for
owned/leased, non-owned or hired automobiles with combined single limit of not less than one
million dollars
($1,000,000.00) for each accident.

     14.2. Rating. Unless otherwise agreed, all insurance policies shall be obtained and
maintained with companies rated A or better by Best’s Key Rating Guide, and each Party shall,
upon request, provide the other Party with an insurance certificate confirming compliance with
the requirements of this Section 14.3.

     14.3. Subrogation. The Parties shall each obtain from the insurance companies
providing the coverage required by this Agreement, the permission of such insurers to allow such
Party to waive all rights of subrogation and such Party does hereby waive all rights of said
insurance companies to subrogation against the other Party, its affiliates, subsidiaries,
assignees, officers, directors and employees.

     14.4. Indemnification. In the event any Party fails to maintain the required
insurance coverage and a claim is made or suffered, such Party shall indemnify and hold harmless
the other Party from any and all claims for which the required insurance would have provided
coverage.

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ARTICLE XV

MISCELLANEOUS

     15.1. Notices. All Notices must be in writing and will be deemed to have been duly
given when (a) delivered by hand (against receipt); (b) or delivered by electronic-mail (with
written confirmation of receipt); (c) when received by the addressee, if sent by a nationally
recognized overnight delivery service (receipt requested); or (d) five (5) days after being sent
registered or certified mail, return receipt requested, in each case to the appropriate
addresses set forth below (or to such other addresses and telecopier numbers as a Party may
hereafter designate by similar Notice to the other Parties):

If to Triad, to:

Triad Guaranty Inc.

101 South Stratford Road

Winston-Salem, NC 27104

Attention: Earl F. Wall, General Counsel

Email: ewall@tgic.com

With a copy (which shall not constitute notice) to:

Womble Carlyle Sandridge & Rice, PLLC

One West Fourth Street

Winston-Salem, NC 27101

Attention: Jeffrey C. Howland

Email: jhowland@wcsr.com

If to Company, to:

Essent Guaranty, Inc.

201 King of Prussia Road

Radnor, PA 19087

Attn: Mark A. Casale

Email: mark.casale@essent.us

With a copy to (which shall not constitute notice) to:

Dewey & LeBoeuf LLP

1301 Avenue of the Americas

New York, NY 10019

Attn: Michael Groll

Email: mgroll@dl.com

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Dewey & LeBoeuf LLP

1301 Avenue of the Americas

New York, NY 10019

Attn: Jeffrey S. MacDonald

Email: jmacdonald@dl.com

or to such other address or addresses as such Party may, from time to time, designate by like
notice.

     15.2. Assignments, Successors and No Third Party Rights. Neither Party may assign
any of its rights or obligations under this Agreement (including, without limitation,
voluntarily or by operation of law) without the prior consent of the other Party except that
either Party may assign any of its rights under this Agreement to any Affiliate of such Party;
provided, that any such assignment shall not relieve the Party of its duties and obligations
hereunder; and provided further, that Triad may assign its rights and obligations hereunder to a
Third Party acquiring Triad in a Fundamental Transaction. Subject to the preceding sentence,
this Agreement will apply to, be binding in all respects upon and inure to the benefit of the
successors and permitted assigns of the Parties. Nothing expressed or referred to in this
Agreement will be construed to give any Third Party any legal or equitable right, remedy or
claim under or with respect to this Agreement or any provision of this Agreement.

     15.3. Force Majeure. Each Party will be excused for any failure or delay in
performing any of its obligations (other than payment obligations) under this Agreement if such
failure or delay is caused by any act of God, any accident, explosion, fire, act of terrorism,
storm, earthquake, flood or similar extraordinary circumstance or event outside the reasonable
control of the non-performing Party which could not have been prevented by such Party’s
reasonable precautions (each a “Force Majeure Event”). For the avoidance of doubt, the
term “Force Majeure Event” does not include any of the exceptions set forth in clauses (a)
through (c) of the definition of “Failure” (and events or circumstances arising therefrom).
Following the written declaration of a Force Majeure Event by a Party, the Parties shall consult
to assess the Force Majeure Event and any ways in which the same may be avoided or mitigated.
During the pendency of a Force Majeure Event, the affected Party shall use its commercially
reasonable efforts to avoid, mitigate, remedy or remove such Force Majeure Event, and shall use
its commercially reasonable efforts to resume its performance under this Agreement with the
least practicable delay. In the event any Force Majeure Event lasts longer than thirty (30)
days, the other Party may terminate the affected Service or this Agreement immediately upon
giving the other Party written notice.

     15.4. Amendments and Waivers. No amendment or waiver of any provision of this
Agreement shall be valid unless in writing and signed by the Party to be charged with such
amendment or waiver. No waiver by any Party of any default, misrepresentation or breach of
warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any
prior or subsequent default, misrepresentation or
breach of warranty or covenant hereunder or affect in any way any rights arising by virtue
of any prior or subsequent such occurrence.

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     15.5. Headings and Captions. The headings and captions set forth in this Agreement
are for convenience only and shall not be considered as part of this Agreement nor as in any way
limiting or amplifying the terms and provisions hereof.

     15.6. Entire Agreement. This Agreement supersedes all prior agreements among the
Parties with respect to its subject matter and constitutes (together with the other Transaction
Agreements) a complete and exclusive statement of the terms of the agreement between the Parties
with respect to its subject matter. The Exhibits and Schedules identified in and attached to
this Agreement are incorporated herein by reference and shall be deemed as fully a part hereof
as if set forth herein in full. In the event of any inconsistency between the terms and
conditions in the body of this Agreement and the Schedules, the terms and conditions of (i)
Schedule A will control over the main body of the Agreement; and (ii) the main body of this
Agreement will control over the terms and conditions of all other Schedules unless a written
provision in a Schedule explicitly states the intent of the Parties that such provision controls
over or amends a provision of the main body of this Agreement.

     15.7. Counterparts; Facsimile. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which, taken together, shall
constitute one and the same instrument. Original signatures hereto may be delivered by facsimile
or .pdf which shall be deemed originals.

     15.8. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA, WITHOUT GIVING EFFECT TO CONFLICT OF
LAWS PRINCIPLES. The Parties irrevocably submit to the exclusive jurisdiction of any North
Carolina State Court or any Federal Court located in Forsyth County or the Middle District of
North Carolina, for purposes of any suit, action or other proceeding to enforce their rights
hereunder or any arbitration award hereunder. The Parties agree that service of process, summons
or notice or document by U.S. registered mail to such Party’s respective address set forth in
Section 15.1 shall be effective service of process for any action, suit or proceeding in North
Carolina with respect to any matters to which it has submitted to jurisdiction as set forth
above in the immediately preceding sentence. THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
AGREEMENT ENTERED INTO IN CONNECTION THEREWITH AND FOR ANY COUNTERCLAIM WITH RESPECT THERETO. In
the event of any breach of the provisions of this Agreement, the non-breaching Party shall be
entitled to seek equitable relief, including in the form of injunctions and orders for specific
performance, where the applicable legal standards for such relief in such courts are met, in
addition to all other remedies available to the non-breaching Party with respect thereto at law
or in equity.

     15.9. Further Assurances. The parties agree (a) to furnish upon request to each
other such further information, (b) to execute and deliver to each other such other
documents and (c) to do such other acts and things, all as the other Party may reasonably

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request for the purpose of carrying out the intent of this Agreement and the transactions
contemplated hereby.

     15.10. Severability. The determination of any court that any provision of this
Agreement is invalid or unenforceable shall not affect the validity or enforceability of the
remaining terms and provisions hereof or the validity of the offending term or provision in any
other situation or in any other jurisdiction. Upon such a determination, the Parties shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the
Parties as closely as possible in an acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest extent possible.

     15.11. Independent Contractor. The Parties hereto understand and agree that this
Agreement does not make any of them an agent or legal representative of any other for any
purpose whatever. No Party is granted, by this Agreement, any right or authority to assume or
create any obligation or responsibility, express or implied, on behalf of or in the name of any
other Party or to bind any other Party in any manner whatsoever. The Parties expressly
acknowledge (a) that each Party is an independent contractor; and (b) the Parties are not
partners, joint venturers, employees or agents of or with each other.

     15.12. Confidentiality. For purposes of this Agreement, “Confidential
Information” of a Party shall mean (x) the Personally Identifiable Information and any
updates thereto provided by Triad to Company or any of its Affiliates pursuant to the Purchase
Agreement and this Agreement; (y) non-public information based on Personally Identifiable
Information created by either Party in the performance of the Services pursuant to this
Agreement; and (z) non-public, technical, business or proprietary information provided by either
Party to the other Party in the performance of Services pursuant to this Agreement.

          (a) Obligations. The Parties will each refrain from disclosure of Confidential
Information of the other Party to any Person not authorized by the other Party and will use the
Confidential Information of the other Party solely for the performance of or use of Services; it
being understood and agreed that each Party will use the same level of care (including both
facility physical security and electronic security) to prevent unauthorized disclosure and/or
use by third Parties of the Confidential Information of the other Party as it employs to avoid
unauthorized disclosure or use of its own information of a similar nature, but in no event less
than a reasonable standard of care. Notwithstanding the foregoing obligations (but subject to
compliance with law) the Parties may disclose to and permit use of the Confidential Information
of the other Party by their respective legal counsel, auditors, contractors and subcontractors
where: (i) such disclosure and use is reasonably necessary; and (ii) such legal counsel,
auditors, contractors and subcontractors are bound by obligations of confidentiality,
non-disclosure and other terms as restrictive in scope as those set forth in this Section 15.12.

          (b) Exclusions. Notwithstanding the foregoing, this Section 15.12 shall not apply
to any information which the Party can demonstrate was or is: (i) at the time of disclosure to
it, in the public domain; (ii) after disclosure to it, published or

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otherwise becomes part of the public domain through no fault of the receiving Party; (iii)
received after disclosure to it from a Third Party, who had a lawful right to and, without a
breach of duty owed to the disclosing Party, without any restriction on use or disclosure; or
(iv) independently developed by or for the receiving Party without reference to or use of the
Confidential Information of the disclosing Party. With respect to Triad, Triad Confidential
Information shall not be deemed to include any information relating to the Purchased Assets that
were purchased by Company under the Purchase Agreement. Further, either Party may disclose the
other Party’s Confidential Information to the extent required by law or order of a court or
Governmental Body. However, in the event of disclosure pursuant to an order of a court or
Governmental Body, and subject to compliance with law or such order of a court or Governmental
Body, the recipient of such Confidential Information shall give the disclosing Party prompt
notice to permit the disclosing Party an opportunity, if available, to obtain a protective order
or otherwise protect the confidentiality of such information, all at the disclosing Party’s cost
and expense.

          (c) Ownership. All Confidential Information of a Party or a designated group shall
remain the exclusive property of the disclosing Party and the disclosure shall not grant any
express or implied interest in the other Party or its subcontractors to such Confidential
Information. Upon written request by a Party at any time and without regard to the default
status of the Parties under this Agreement, the other Party shall promptly return to the
disclosing Party the Confidential Information in the format as it exists on the date of the
request.

          (d) Loss of or Unauthorized Access to Confidential Information. Each Party shall
promptly notify the other Party in writing if it becomes aware of any disclosure or use in
violation of this Agreement of the other Party’s Confidential Information that is in such
Party’s or an Affiliate’s or subcontractor’s possession. The Parties shall use commercially
reasonable efforts to cooperate to minimize the effects of a loss of Confidential Information
and unauthorized access to Confidential Information.

          (e) Limitation. The obligations of Section 15.12(a) will apply after the Closing
Date to any Confidential Information disclosed to the receiving Party before and after the
Closing and will continue and must be maintained with respect to Confidential Information for a
period: (i) in the case of Personally Identifiable Information, in perpetuity; and (ii) in the
case of all other Confidential Information, for a period of ten (10) years from receipt.

[signature pages follow]

52

 

     IN WITNESS WHEREOF, the Parties, acting through their duly authorized representatives,
have caused this Services Agreement to be duly executed and delivered as of the date first above
written.

	 	 	 	 	 
	 	TRIAD GUARANTY INC.

 	 
	 	By:  	/s/ Kenneth W. Jones
 	 
	 	 	Kenneth W. Jones 	 
	 	 	President and CEO 	 
	 
	 	TRIAD GUARANTY INSURANCE CORPORATION

 	 
	 	By:  	/s/ Kenneth W. Jones
 	 
	 	 	Kenneth W. Jones 	 
	 	 	President and CEO 	 
	 
	 	ESSENT GUARANTY, INC.

 	 
	 	By:  	/s/ Mark A. Casale 	 
	 	 	Mark A. Casale 	 
	 	 	President and CEO 	 
	 

[SIGNATURE PAGE TO SERVICES AGREEMENT]

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