Document:

f8k0310ex10v_wolf.htm

Exhibit 10.5

jetEngineTM Software License Agreement

 

This jetEngineTM Software License Agreement ("Agreement"), effective as of June 7'h, 2007, ("Effective Date"), is made by and between Airline Intelligence Systems Inc. ("AISystems"), a Delaware corporation having an office at 4122 Factorie Blvd. SE, Suite 310, Bellevue, Washington 98006 USA, and Aerovias De Mexico, S.A. DB CV ("Licensee"), a Mexican corporation having an office at Paseo de la Reforma No. 445, Col. Cuahtemoc 06500, Mexico, D.F ,(individually, a "Party," and collectively, the "Parties"). If no date is provided above, then the Effective Date of this Agreement shall be the date on which it is fully signed by the Parties.

 

In consideration of the rights and obligations set forth in this Agreement, and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties agree as follows:

 

1. DEFINITIONS

 

The following terms, and derivatives thereof, shall have the following meanings for the purposes of this Agreement.

 

	
1.1

	
 "Acceptance" means Licensee's acceptance of a Licensed Software module pursuant to Section 43(e).

 

 

	
1.2

	
 "Affiliate" of a party means a corporation or other legal entity (a) controlled by the party, (b) controlling the party, or (c) controlled by the corporation or legal entity that controls the party, For the purposes of this paragraph, to "control" a corporation or an entity means to own or control, either directly or indirectly such as by intermediary entities, (1) more than 50% of the shares or other securities entitled to vote for election of directors (or other managing authority) of the corporation or entity; or (2) if the corporation or entity does not have outstanding shares or securities as may be the case in a partnership, joint venture, or unincorporated association, more than 50% of the ownership interest representing the right to make decisions for the corporation or entity. Notwithstanding the foregoing, any corporation or other legal entity shall be deemed to be an Affiliate only so long as such control exists.

 

	
1.3

	
"Airline Services" means the provision of mass air transport services to consumer passengers, and excludes freight transport services and military applications.

 

	
1.4

	
"Confidential Information" has the meaning set forth In Section 7.1.

 

	
1.5

	
"Deployment Schedule" means the schedule for the initial installation and testing of the modules of Licensed Software.

 

	
1.6 

	
"Documentation" means the user manual or guide for the Licensed Software supplied by AISystems, as updated from time to time,

 

	
1.7

	"Exclusivity Term" has the meaning set forth set forth In SCHEDULE A (PAYMENT)

 

  

  

  

 

	
1.8

	
"Exclusivity Term Extension Fee" has the meaning set forth in SCHEDULE A (PAYMENT).

 

	
1.9

	
"GA AP" shall mean the then-current applicable generally accepted accounting principles in Mexico. As used herein, "GAAP" shall also include cost accounting principles that are generally accepted in Mexico.

 

	
1.10

	
"Licensed Software" means the Schedule Planning, Irregular Operations and Revenue Management software modules, in object code form only, that are listed on SCHEDULE B (LICENSED SOFTWARE), and all associated databases and Updates thereto provided hereunder.

 

1.11    "Ongoing Fees" has the meaning set forth in SCHEDULE A (PAYMENT),

 

	
1.12

	
 "Public- Passenger Information" means the number of passengers identified as being flown by Licensee as published in the "Bstadistica Mensual per empresa" quarterly report by the "DGAC", Direccion General de Aeronautics Civil.

 

	
1.13

	
 "Term" means the period beginning on the Effective Date and ending three (3) years thereafter unless this Agreement is extended or terminated sooner in accordance with the provisions hereof, in which case the Term shall end on the date of such extension or termination.

 

1.14    "Territory" means Mexico.

 

	
1.15 

	
"Updates" mean new versions of the Licensed Software which are generally provided by AISystems free of charge to customers who are receiving maintenance support services. For the avoidance of doubt, "Updates" do not include new, separate product offerings for which AISystems charges an additional fee. Updates are typically designed by a change in the version number to the right of the decimal point (e.g., version 1.0 to 1.1).

 

2.       SCOPE

 

	
2.1

	
Grant. Subject to the terms and conditions of this Agreement, AISystems grants Licensee a personal, non-transferable (subject to Section 9.6 below) license to (a) install the Licensed Software on computers and servers In the Territory and the United States that are solely owned and controlled by Licensee, (b) install those portions of the Licensed Software identified by AISystems as remote access software on computers that are solely owned and controlled by Licensee (in and out of the Territory) and (c) internally use such installed Licensed Software, in object code form, solely for Licensee's own internal business purposes in connection with Airline Services.

 

  

  

  

 

	
2.2

	
Exclusivity. During the Exclusivity Term, AISystems shall not license the Licensed Software to any of the Territory-based airlines listed on SCHEDULE F (LIST OF TERRITORY-BASED AIRLINES) for use in connection with Airline Services, so Ion as Licensee is at all times in full compliance with the terms of this Agreement, including, without limitation, Licensee's full cooperation and timely performance of its oblige ins under the Deployment Schedule and assistance in connection with the installation, testing and deployment of the Licensed Software and Licensee's timely payment of all fees.Should an airline listed on SCHEDULE F (LIST OF TERRITORY-BASED AIRLINES) cease to have its corporate headquarters located in the Territory, that airline shall immediately and automatically be deemed deleted from SCHEDULE F (LIST OF TERRITORY-BASED AIRLINES). Should an airline not listed on SCHEDULE F (LIST OF TERRITORY-BASED AIRLINES) open or move its corporate headquarters to the Territory, that airline shall immediately and automatically be included in SCHEDULE F (LIST OF TERRITORY-BASED AIRLINES). Licensee may extend the Exclusivity Term in six (6) month increments by both (a) paying AISystems, prior to the next extension, the Exclusivity Term Extension Fee for each module that was Accepted by Licensee and (b) providing AISystems with notice of its intent to extend the Exclusivity Term and pay the Exclusivity Term Extension Fee at least ninety (90) days in advance of the expiration of the then-current Exclusivity Term.

 

	
2.3

	
Affiliates. Licensee has the right to grant any of its Affiliates a sublicense within the scope of the licenses granted to Licensee, provided that (a) Licensee first obtains AlSysternsi written consent before granting a sublicense to an entity that becomes an Affiliate after the Effective Date, (b) the sublicensee is bound in writing by the same terms and conditions imposed on Licensee under this Agreement, including obligations to pay fees (by way of example, Ongoing Fees for the passengers flown by the Affiliate), and (c) Licensee and its Affiliates shall be responsible for the actions or omissions of the Affiliates and both shall be jointly and severally liable to AISystems if any such actions or omissions breach any provision of this Agreement (including due to bankruptcy). Any such sublicense granted to an Affiliate shall immediately terminate in the event that the sublicense° ceases to be an Affiliate, and no sublicensee shall be granted the right to grant any further sublicenses or use the Licensed Software or Documentation on behalf of any third party, including any Affiliate or alliance or code share partner of the sublicensee, Any sublicense permitted under this Section may be made effective retroactively, but not before the Effective Date nor before the sublicensee becoming an Affiliate of Licensee. Licensee shall notify AISystems of the identity of each sublicensee and provide to AISystems within thirty (30) days after execution, a true copy of such sublicense. Licensee shall pay, report and account to AISystems for payments due for the exercise by any sublicensee of any sublicense. For the purposes of interpretation of this Agreement, the use of the both "Licensee" and "Affiliate" in one instance, and only "Licensee" in another instance, shall not be construed as an intention to exclude a sublicensed Affiliate from the obligations of the Licensee in the second instance.

	
2.4

	
Copies. Licensee shall have the right to make (a) a single archival copy of the Licensed Software for archival purposes only and (b) single copies as necessary to its installation of the Licensed Software. Otherwise, Licensee shall not make copies of the Licensed Software.

	
2.5

	
Third Party Software Required.  Licensee understands that the Licensed Software will not function properly unless used with third party products and services identified, but tot provided, by AISystems. In the event AISystems provides Licensee with third pa products and services covered by a third party license (including a "shrink-wrap" licensee), Licensee agrees to use such products and services in accordance with the terms of the third party license agreement.

 

  

  

  

 

	
2.6

	
No Other Rights. Licensee acknowledges that it obtains no ownership rights in the Licensed Software under the terms of this Agreement and that no other rights, other than those expressly set forth herein, are granted or implied. By way of example only, Licensee may not: provide copies of or perform or display the Licensed Software to third parties; modify, merge, or create derivative works from the Licensed Software; incorporate the Licensed Software into other software, or; rent, lease, license or sublicense the Licensed Software to any third party, As between AISystems and Licensee, ownership in the Licensed Software and copies thereof, including the ownership of any associated trade secrets, modifications to the Licensed Software, trademarks, service marks, patents, and copyrights associated therewith, remains in AISystems, its suppliers, and its licensors. AISystems retains the rights to exploit the Licensed Software for all purposes of AISystems and its customers not otherwise expressly precluded by the Agreement without accounting or disclosure to Licensee, All rights not expressly granted to Licensee are reserved by AISystems. There are no implied rights,

 

	
2.7 

	
Fixes. Licensee will make its best effort to use the most recent version of the Licensed Software and Documentation provided by AISystems to Licensee, including any Updates provided during the term of this Agreement.

 

	
2.8 

	
No Reverse Engineering. Licensee will not reverse engineer the Licensed Software, nor disassemble, decompile or attempt to derive the source code from, or input or output data formats of, any portion of the Licensed Software; however, to the extent certain reverse engineering activities may be permitted by law in spite of Licensee's agreement not to reverse engineer, this sentence shall not apply to such activities, provided that Licensee shall notify AISystems in writing at least ninety (90) days prior to taking any proposed action in contravention of this provision. Such written notice shall provide the parties an opportunity to discuss the scope of any necessary reverse 'engineering that would be required to be permitted under applicable local law,

 

	
2.9

	
Backups. Licensee must maintain backups of' any data outputted _from, or intended for input into, the Licensed Software.

 

	
2.10

	
Internal Use Only. Licensee may not use the Licensed Software for the purpose of processing data on behalf of third parties including, without limitation, any Licensee airline alliance or code share partners, nor in connection with a service bureau or utility computing arrangement. Licensee shall not install the Licensed Software on any computer in a manner allowing the Licensed Software to be executed or accessed by third parties. Notwithstanding the previous sentence, Licensee may use the Licensed Software for the purposes of revenue management, operations and reservations with respect to Licensee's code share partners, provided that (a) such use is for tickets sold by Licensee on code share partner flights and (b) Licensee's uses the Licensed Software for schedule planning solely in connection with Licensee's own fleet.

 

	
2.11

	
Proprietary Legends. Licensee shall not alter any proprietary markings on or in he Licensed Software or any other materials provided by AISystems hereunder, or any co gas thereof, including copyright, trademark, trade secret, and patent notices.

 

  

  

  

 

3. PAYMENT

 

3.1

 

 

3.2

 

 

3.3

 

(a)

 

 

(b)

 

 

(c)

 

 

3.4

 

 

(a)

 

 

 

  

  

  

 

(b)

 

 

AISystems may change the foregoing payment account and address information upon notice to Licensee,

3.5

 

 

3.6

 

 

3.7

 

 

3.8

 

 

3.9

 

 

  

  

  

 

3.10

 

 

 

 

3.11

 

4.       DEPLOYMENT

 

	
4.1 

	
Technical Baseline Assessment. Promptly following the Effective Date, the parties shall confer and cooperate in good faith to perform an assessment of Licensee's systems and personnel with respect to the Installation and deployment of each module of the Licensed Software and prepare a Deployment Schedule.

 

	
4.2

	
Cooperation and Assistance. Licensee shall cooperate at all times and fully support the installation and deployment of the Licensed Software. In addition to performing the tasks and requirements outlined in the Deployment Schedule, Licensee's cooperation and support shall include, but not be limited to, the dedication of appropriate Licensee equipment and resources and personnel and the provision of qualified Licensee personnel reasonably acceptable to AISystems who will assist AISystems in its efforts, arid the provision of timely and responsive information, input and assistance. Licensee may need to provide, at its own expense, office space and customary workplace amenities, such as telephone access, office furniture, network access, etc., so that AISystems technical representatives will be able to carry out in a professional manner their technical duties in furtherance of the installation and deployment of the Licensed Software.

  

  

  

 

4.3     Deployment

 

	
(a)

	

Kick-Off Dates. For the Schedule Planning module of the Licensed Software, the kickoff date will be the Effective Date. The second kick-off date will be for the Irregular Operations or Revenue Management module of the Licensed Software, and will occur on the earlier of Acceptance of the Schedule Planning module or a mutually agreed-to date. The third kick-off date will be for the Irregular Operations or Revenue Management module of the Licensed Software, whichever has not had a kick-off date yet, and will occur on the earlier of the date that the other two modules are both Accepted or a mutually agreed-to date.

 

	
(b)

	
Time Limit. If any module is not Accepted by Licensee within nine (9) months of the kick-off date, then either party may terminate the agreement immediately upon written notice.

 

	
(c) 

	
Ready and Acceptance/Rejection Notices. If AISystems provides Licensee with a notice that a given module is ready for acceptance (the "ready notice"), then Licensee must provide notice within fifteen (15) business days of the ready notice stating that Licensee either accepts or rejects the module (the "acceptance/rejection notice"). A rejection may only be based on the module's failure to be in line with Licensee's business functions or substantial defects in the module, Licensee shall explain the basis for the rejection I reasonable detail in the acceptance/rejection notice.The ready notice and acceptance/rejection notice shall be made in AISystems' and Licensee's sole discretion, respectively, but shall be made in good faith. If Licensee fails to provide notice with such fifteen (15) business day period, the module shall be deemed accepted by Licensee.

 

	
(d)

	
Overcoming Rejections. If Licensee provides AISystems with an acceptance/rejection notice rejecting a module, then AISysterns must provide counter-notice within fifteen (15) business days of receipt, which counter-notice shall indicate whether AISystems either agrees to attempt to overcome the rejection(s) (in which ease it will provide an estimated date by which it will be overcome) or state that it will not overcome the rejection. If the estimated date 1$ more Than nine (9) months after the modules kick-off date, then Licensee may terminate this Agreement. If AlSysteins is unwilling to overcome a rejection, either party may terminate this Agreement immediately upon written notice; provided, however, AISystems may not terminate the Agreement in accordance with this sentence if the rejection both (a) would require AISystems to incur less than US$500,000 (Five Hundred Thousand United States Dollars) and (b) in AISystems reasonable estimation, would be overcome by a date less than nine (9) months after the module's kick-off date.

 

5. MAINTENANCE, TRAINING AND ENHANCEMENTS

 

	
5.1 

	
Maintenance and Support. AISystems shall maintain and support the Licensed Software in accordance with SCHEDULE B (MAINTENANCE AND SUPPORT).

 

 

  

  

  

 

	
5.2 

	
Training. AISystems shall train Licensee in the use of the Licensed Software in accordance with SCHEDULE C (TRAINING).

 

	
5.3 

	
Updates. AISystems shall provide Licensee with Updates to the Licensed Software following release at no additional cost beyond the payments required in Section 3 ("PAYMENT"). Updates shall not include new versions: containing modifications that AISystems is prohibited from licensing to Licensee in accordance with this Agreement. Updates further do not include any new versions containing modifications which, if licensed to Licensee in accordance with this Agreement, would require AISystems to pay royalties or other consideration to a third party.

 

	
5.4

	
Maintenance Exceptions. AISystems shall have no obligation to provide maintenance, support or training as set forth in this Section 5 with respect to (a) any aspect of the Licensed Software modified by Updates that have been made available to, but not yet used by, Licensee or (b) any software questions, errors or issues arising from Licensee's use or development of interfaces for the Licensed Software (or other software or systems which transfer data between the Licensed Software and Licensee's systems and services) that are not provided by AISystems.

 

	
5.5

	
 Customizations and Interfaces. In the event AISystems agrees to customize the Licensed Software for Licensee after acceptance, AISystems may require such customizations to be performed pursuant to a separate mutually-acceptable agreement between the parties, including an agreement by Licensee to pay additional compensation. Absent such separate agreement, any customizations, software, databases or other materials provided by AISystems to Licensee relating to the Licensed Software, including any interfaces between the Licensed Software and Licensee's systems and services, shall be owned by AISystems (as between AISystems and Licensee) and considered Licensed Software for the purposes of this Agreement.

 

6.       WARRANTIES, LIMITATION ON LIABILITY AND INDEMNIFICATION

 

	
6.1

	
Warranty Disclaimer, THE LICENSED SOFTWARE AND DOCUMENTATION ARE PROVIDED "AS IS" AND WITHOUT WARRANTY OF ANY TYPE OR KIND AND AISYSTEMS MAKES NO WARRANTIES AND DISCLAIMS AND EXCLUDES ALL OTHER WARRANTIES, WHETHER STATUTORY, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OP MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT OR ANY WARRANTY ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE.

	
6.2 

	
Consequential Damages Waiver. IN NO EVENT SHALL AISYSTEMS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS, LOSS OF USE, BUSINESS INTERRUPTION OR LOSS OF DATA OR INFORMATION, RELATING TO THE LICENSED SOFTWARE OR MATE 'IALS ASSOCIATED THEREWITH OR ARISING OUT OF THIS AGREEMENT, HO VER CAUSED, WHETHER FOR BREACH OF WARRANTY, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EVEN IF AISYSTEMS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE OF THE ESSENTIAL PURPOSE OF THIS AGREEMENT OR ANY LIMITED REMEDY HEREUNDER. For the purposes of this paragraph only, references to "AISystems" and "Licensee" shall be deemed to include AISystems' and Licensee's subsidiaries, affiliates, employees, directors, officers, licensees, representatives and subcontractors, suppliers and distributors. This paragraph shall not be construed to limit any amounts owed by AISystems to Licensee pursuant to Section 6.4 ("Indemnification and Indemnification Procedure).

 

  

  

  

 

	
6.3

	
Cap on Liability. AISYSTEMS AND ITS SUPPLIERS' TOTAL LIABILITY UNDER OR FOR BREACH OF THIS AGREEMENT SHALL BE LIMITED TO THE AMOUNTS PAID BY LICENSEE TO AISYSTEMS PURSUANT TO THIS AGREEMENT; PROVIDED, HOWEVER, THAT DIRECT OR INDIRECT DAMAGES OWED BY LICENSEE TO THIRD PARTIES FOR WHICH AISYSTBMS IS OBLIGATED TO INDEMNIFY LICENSEE PURSUANT TO SECTION 6.4 ("Indemnification and Indemnification Procedures") ARE NOT SUBJECT TO THE FOREGOING LIMITATION.

 

6.4     Indemnification and indemnification Procedures

 

	
(a)

	
 AISystems will defend, at its expense, any action brought against Licensee by a third party to the extent that such action is based on a claim that use of the Licensed Software within the scope of this Agreement infringes the third party's patent or copyright or misappropriates the third party's trade secret right. AISystems will indemnify Licensee from an direct or indirect damages owed to such third party resulting from such claim. If commercially feasible to do so, AISystems shall, at its own expense, procure the necessary rights for Licensee to exercise the licenses granted herein or replace the Licensed Software with substantially-equivalent non-infringing software. If neither of the foregoing are commercially feasible, AISystems may terminate this Agreement upon written notice, Notwithstanding the foregoing, AISystems shall have no obligation to defend or indemnify Licensee against any claim that would not arise but for; (i) the combination, operation or use of the Licensed Software with other software, hardware, equipment, programs, services or data not supplied by AISystems, (ii) the infringement results from non-core features that were added at AeroMexico's request (whereby "non-core features" for the purposes of this sentence are features that are not core to the business functions of AeroMexlco's systems and processes existing as of the Effective Date), (ii) to the extent it arises from Licensee's failure to satisfy an obligation herein, (iii) Licensee's failure to use the most recent Update made available to Licensee, provided that if requested by Licensee, AISystems will install such Update on Licensee's systems without additional charge to Licensee, or (iv) Licensee's continued engagement in the allegedly infringing conduct after receiving notice of the claim, In the event the above exclusions apply, Licensee shall indemnify and hold AISystems harmless from and against all damages resulting from such claim. THIS SECTION STATES THE ENTIRE LIABILITY OF AISYSTEMS WITH RESPECT TO INFRINGEMENT OR SOFTWARE AND AISYSTEMS WITH RESPECT TO INFRINGEMENT OR VIOLATION OF INTELLECTUAL PROPERTY RIGHTS BY THE LICENSED SOFTWARE AND AISYSTEMS SHALL HAVE NO ADDITIONAL LIABILITY WITH RESPECT TO ANY ALLEGED OR PROVEN INFRINGEMENT OR VIOLATION.

 

  

  

  

 

	
(b) 

	
A Party requesting indemnification hereunder shall send notice of same to the indemnifying party. Such notice shall explain the nature of the claim giving rise to indemnification request and shall be sent within seven (7) days after the indemnified party is notified regarding the claim or earlier if necessary to prevent prejudice to the indemnifying party's ability to defend the claim. The indemnifying party shall have Rill authority to defend or settle the claim with counsel of its own choosing, but shall consult with the indemnified party regarding settlement discussions and its defenses. The indemnified party shall be entitled to participate in the defense of the claim, including employment of separate counsel, at its own expense. The indemnified party shall cooperate with the indemnifying party in the defense of the claim. The indemnifying party shall have the right to immediately terminate this Agreement whenever a claim shall arise for indemnification hereunder.

 

	
6.5

	
High Risk Activities. The Licensed Software is not fault-tolerant and is not designed, manufactured or intended for use in hazardous environments requiring fail-safe pet-romance, such as in the flight operation of aircraft, aircraft navigation or communication systems, air traffic control, nuclear facilities, medical equipment, direct life support machines, weapons systems or any other business, system or product in which the failure of the Licensed Software could lead to death, personal injury, or physical or environmental damage ("High Risk Activities"). Licensee agrees that AISystems and its Affiliates and their suppliers will not be liable for any claims or damages arising from the use of the Licensed Software in such applications,

 

7. CONFIDENTIALITY

 

	
7.1 

	
Definition. "Confidential Information" means (a) the Licensed Software and Documentation, (b) all financial information, all operational related information and labor & unions information and (c) any non-public information disclosed in connection with this Agreement that the Recipient knows or reasonably should know is confidential to the Discloser. 'Discloser" means the Party disclosing Confidential Information and "Recipient" means the Party receiving Confidential Information. Confidential Information also includes all summaries or abstracts of Confidential Information.

 

	
7.2

	
Reproductions. Recipient shall reproduce Confidential Information only to the extent necessary to exercise its rights and obligations under this Agreement. Reproductions of Confidential Information shall include any proprietary markings on or in the Confidential Information, including copyright, trademark, trade secret and patent notices.

 

	
7.3

	
Licensed Software Output. As between Licensee and AISystems, the Licensed Software and Documentation comprise the Confidential Information of AISystems. However, to the extent data is generated based on both the Licensed Software and data provided by Licensee, such as, but not limited to, data calculated by the Licensed Software based on data input by the Licensee, then such generated data shall be considered Confidential information of both parties and neither party shall disclose such generated data to third parties except as permitted under this Agreement. Notwithstanding the foregoing or anything else in this Agreement to the contrary, AISystems shall be entitled to aggregate such generated data with data received from third parties, and use and disclose , such aggregated data, provided that the aggregated data does not reveal Licensee's data by may of example, AISystems may disclose averages across multiple customers of AISystems provided that a reasonable person in Licensee's industry would not be able to discern which aspects of the data are particular to Licensee.

 

  

  

  

 

	
7.4 

	
No Use or Disclosure. Each party acknowledges that, in the course of the performance of this Agreement, it may obtain the Confidential Information of the other party. The Recipient shall not use the Confidential Information of the Discloser other than as necessary to perform its obligations or exercise its rights under this Agreement. Recipient shall not disclose Confidential Information to any third party, other than its officers, employees, consultants and independent contractors who need access to such Confidential Information in order to effect the intent of this Agreement and who have entered into written confidentiality agreements with the Recipient under terms sufficient to enable the Disclosing Party to comply with its confidentiality obligations under this Agreement, nor use the Confidential Information for the benefit of a third party, without prior written approval of Discloser. Recipient shall take reasonable precautions to prevent the inadvertent or unauthorized disclosure of Confidential Information, including at least those reasonable precautions taken by Recipient to protect its own confidential information of similar nature and importance and all other precautions necessary to comply with the confidential obligations established in this agreement, For the purposes of this paragraph, "need to know" means that the person requires the Confidential Information to perform his, her or its responsibilities in connection with this Agreement. The Recipient shall immediately give notice to the Discloser of any unauthorized use or disclosure of the Discloser's Confidential Information when it becomes aware of the unauthorized use or disclosure. The Recipient agrees to assist the Discloser in remedying such unauthorized use or disclosure of its Confidential Information,

 

	
7.5

	
Duration. Recipient's duty to protect Confidential Information commences upon receipt of the Confidential Information and shall continue for a period of 10 (ten) years beyond the termination of this Agreement.

 

	
7.6

	
Exceptions. These restrictions on the use and disclosure of Confidential Information shall not apply to any Confidential Information that Recipient can document: (a) is lawfully received by Recipient free of restriction from another source having the right to furnish the Confidential Information free of restriction; (b) becomes readily available to the public without breach of this Agreement by Recipient; (c) is, at the tithe of disclosure to Recipient, known to Recipient free of confidentiality restrictions; (d) is independently developed by the Recipient without use of, or reference to, the Confidential Information of the Discloser, which independent development the Recipient shall have the burden of proving; or (e) is approved for release by written authorization of the Discloser. A disclosure of Confidential Information by Recipient, on the advice of counsel, which is required under applicable law or other demand under lawful process, including a formal discovery request in a civil litigation, shall not be considered to be a breach of this Agreement or waiver of confidentiality for other purposes; provided however, that the Recipient shall use reasonable efforts to first give Discloser notice as soon as reasonably practicable of the required disclosure and cooperate with Discloser, at Discloser’s sole expense, in seeking reasonable protective arrangements with the party requiring disclosure under applicable law or other demand under lawful process. In no event shall Recipient’s cooperation with Discloser require Recipient to take any action which, on the advice of Recipient's counsel, could result in the imposition of any sanctions or other penalties against Recipient.

  

  

  

 

8. TERM AND TERMINATION

 

	
8.1

	
Term. The rights and obligations of this Agreement shall be effective during the Term and shall terminate at the end of the Term. The Term may be continuously extended in one (1) year increments at the end of the then-current Term if both Parties agree in writing to renew the Agreement at least ninety (90) days before the end of then-current Term.

 

 

	
8.2

	
Early Termination -- Licensee

 

	
8.3

	Early Termination -- Either Party Either party may terminate this Agreement:

 

	
(a)

	in accordance with any terms of-this Agreement which expressly provide for termination; or

 

	
(b) 

	
upon thirty (30) days prior written notice, if the other party has breached a material obligation under this Agreement and such breach remains uncured during such thirty (30) day period; provided, however, that the notice and cure period shall be forty-five (45) days in the case of non-payment; or

 

	
(c)

	
to the extent permitted by applicable law, immediately upon the other party, or a third party with respect to the other party, filing a petition requesting, with respect to the other patty's debts, liquidation, dissolution, reorganization, suspension, rearrangement or readjustment, in any form, under the laws of the United States or any other jurisdiction, or any other bankruptcy or insolvency law; the making by the 'other party of any assignment for the benefit of its creditors; or the admission by the other party in writing of its inability to pay its debts as they mature.

 

	
8.4

	Effect of Termination. Upon termination of this Agreement:

 

	
(a)

	each Party shall use reasonable efforts to immediately destroy or return to the other Party all copies of the Confidential Information of the other party and certify in writing of it compliance with this Section 83(a) as to the destruction or return of such Confidential Information (excluding any generated data);

 

	
(b) 

	
the license granted to Licensee shall immediately terminate and Licensee shall discontinue all further use of the Licensed Software;

 

	
(c) 

	
if not previously terminated, the exclusivity under Section 2.2 ("Exclusivity")shall immediately terminate and be of no further force or effect;

 

  

  

  

 

	
(d)

	
  all payments accrued prior to the date of termination shall become immediately due and payable; and

 

	
(e)  

	
 notwithstanding such specific termination rights, each Party reserves all of its other legal rights and equitable remedies.

 

	
8.5

	
Change of Control. Upon the occurrence of any of the following events: merger of Licensee with another company whether Licensee is not the surviving entity or a third company is formed different from merger and merged; the sale of Licensee's stock which causes a change of control, for purposes of this provision, the term "change of control" means the sale or transfer of 20% or more of the voting stock of Licensee; the total sale of Licensee's stock and/or assets, change of Control of Licensee or Licensee's Parent Company, the parties will have the right to terminate this Agreement without any liability and without the need of judicial notice in a period no longer than 90 days after the effectiveness of the Change of Control by providing a minimum of 90 days prior written notice of termination. Notwithstanding the aforementioned, the parties will agree in good faith the terms and conditions of Transition Process.

	
8.6

	
Survival. The parties' rights and obligations under this Agreement which expressly or by their nature would continue beyond the termination of this Agreement shall remain in effect and survive termination of this Agreement, including Sections 3.10 ("Record Keeping") and 7 ("Confidentiality").

 

9.       GENERAL

	
9.1

	
Relationship of the Parties. In performing this Agreement, each of the Parties will operate as, and have the status of; an independent contractor. Except as may be expressly set forth in this Agreement, neither Party will have the right or authority to assume or create any obligations or to make any representations, warranties or commitments on behalf of the other Party, whether express or implied, or to bind the other Party in any respect whatsoever. Nothing in this Agreement shall be construed as forming any partnership, joint venture, agency, employment, franchise, distributorship, dealership or other similar or special relationship between the Parties.

	
9.2  

	
Rules of Construction. As used in this Agreement, (a) the words "herein," "hereunder" and other words of similar import refer to this Agreement as a whole, including any exhibits and schedules as the same may be modified from time to time, and not to any subdivision of this Agreement; (h) the terms "including," "by way of example" or any variation there of means "including but not limited to" and "by way of example only and without limitation," respectively, and shall not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it; (a) descriptive headings and titles are inserted for convenience of reference only and do not constitute apart of and shall not be utilized in interpreting this Agreement; and (d) explicit references to a particular section shall be deemed to include a reference to its subsections. This Agreement shall be fairly interpreted in accordance with its terms and without any presumption in favor of or against either Party regardless of the drafter. The schedules shall be construed to be fully consistent with all of the provisions appearing before the signatures below and, in the case of any conflict between the schedules and such provisions, such provisions shall prevail.

 

  

  

  

 

	
9.3

	
Notice. Unless otherwise provided in this Agreement, all notices, consents, approvals, waivers and the like made hereunder shall be in written English to the addresses set forth below, shall reference this Agreement and shall be sent by any of the following methods: (a) certified mail, postage-prepaid, return-receipt requested, or (b) an internationally recognized overnight delivery service which requires proof of delivery signed by the recipient. The date of notice shall be deemed to be the date it was first received or refused. A Party may change its address for notice by written notice in accordance with this paragraph.

 

Notices to AISystems shall be sent to:

 

Airline Intelligence Systems Inc. 4122 Factoria Blvd. SE, Suite 310 Bellevue, Washington 98006 USA Attn: Chief Executive Officer

 

and faxed to: 425.696.0451

 

Notices to Licensee shall be sent to:

 

Humberto Figueroa

Chief Information Officer Av. Paseo de is Reforma 445 Col. Cuauhtemoc

Del Cuauhtemoc

CP 06500

cc Edmundo Olivares

 

	
9.4

	
Equitable Remedies. The Parties recognize that money damages may not be an adequate remedy for any breach or threatened breach of any obligation hereunder and that the aggrieved Party may suffer immediate and irreparable harm as a result, The Parties therefore agree that In addition to any other remedies available hereunder, by law or otherwise, a Party may be entitled to obtain injunctive relief against any such continued breach of such obligations.

 

	
9.5 

	
Third Party Beneficiaries. This Agreement is not intended to be for the benefit of and shall not be enforceable by any third party. Nothing in this Agreement, express or implied, is intended to or shall confer on any third party any rights (including third-party beneficiary rights), remedies, obligations or liabilities under or by reason of this Agreement. This Agreement shall not provide third parties with any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to the terms of this Agreement. No third party shall have any right, independent of any right that exists irrespective of this Agreement, to bring any suit at law or equity for any matter governed by or subject to the provisions of this Agreement.

 

  

  

  

 

	
9.6 

	
Assignment. Except as set forth in Section 2.3 or expressly elsewhere in this Agreement neither Party may assign or transfer any of its rights and obligations under this Agreement In whole or part, without the other Party's prior written consent, except that such prior written consent shall not be required in connection with the assignment to (1) an Affiliate; or (ii) to a third party where the assignment is in connection with the merger, acquisition, sale, reorganization or other transfer of all or substantially all of the relevant business of the assigning party to the third party, provided that the assignee agrees in writing to comply with the terms of this Agreement and provided further that, in the case of an assignment by Licensee pursuant to Section 9.6(ii), the licenses granted under this Agreement shall be limited to the assignee using the Licensed Software and Documentation to operate Licensee's business as it existed immediately prior to the effective date of the assignment and may not be used by the assignee in connection with its own business or that of any assignee Affiliate (other than Licensee), or any other party. Any assignment or other transfer which is derogation of the foregoing shall be null and void ab initio.

 

	
9.7

	
No Disclosure Of Agreement.. Neither Party shall disclose information concerning this Agreement or its execution, and the transactions contemplated hereby, including providing a copy of this Agreement, unless such disclosure: (a) is to the Party's outside accounting firm who have entered into written confidentiality agreements with the Recipient under terms sufficient to enable the Disclosing Party to comply with its confidentiality obligations under this Agreement, (I)) the Party's outside legal counsel in connection with obtaining legal advice or enforcing this Agreement, provided the outside counsel either (1) have entered into written confidentiality agreements with the Recipient under terms sufficient to enable the Disclosing Party to comply with its confidentiality obligations under this Agreement or (ii) are bound by law not to disclose the terms of this Agreement without the permission of the Party-client, or (c) is to a potential investor, potential acquirer, or financial advisor of the Party in connection with the bona fide due diligence review of such Party and who have entered into written confidentiality agreements with the Recipient under terms sufficient to enable the Disclosing Party to comply with its confidentiality obligations under this Agreement, or (d) is required to establish or enforce any rights hereunder. In the event a Party is compelled to disclose this Agreement to a governmental authority in connection with regulatory obligations, including to a governmental taxing 'authority in order to verify its tax obligations or a regulatory agency in connection with a public offering, such Party may disclose this Agreement to such authority without obtaining the other Party's prior consent, provided that the authority is obligated to its confidentiality or confidential treatment is requested and obtained. This paragraph shall survive termination of the Agreement. Notwithstanding, each Party has the right to disclose to third parties during the Term that Licensee is a licensee of AISystems provided that Licensee is a reference account pursuant to Section 9.12.

 

	
9.8

	
Force Majeure Neither Party shall be held responsible for any delay or failure in performance of any part of this Agreement to the extent such delay or failure is caused by any cause beyond such Party's reasonable control, including, but not limited to, fire, flood, explosion, war, strike, embargo, government requirements, civil or military authority, act of God, act of terrorism, or other similar causes (collectively, "Force Majeuro Events"). The delayed party shall give the other Party prompt written notice of such Force Majeure Event and use its reasonable efforts to correct such failure or delay in its performance. The Party affected by the other's inability to perform may terminate this Agreement upon 15 (fifteen) days notice if the delay or nonperformance continues during such fifteen (15) days.

 

  

  

  

 

	
9.9

	
Applicable Law and Venue. This Agreement, including any questions relating to its validity, shall be governed by the laws of the State of New York, New York, USA without regard to its or another jurisdiction's conflicts of law rules. The parties expressly agree that the United Nations Convention on Contracts for the International Sale of Goods is specifically excluded from application to this Agreement. Any suit arising under, in connection with or relating to this Agreement, including counterclaims, shall be brought and prosecuted only in the Manhattan Borough; provided, however, that such a suit may be brought in any court having requisite jurisdiction and venue in the event that the courts of Manhattan Borough do not have, or decline, subject matter jurisdiction, personal jurisdiction or venue relating to such suit. Each of the Parties hereby irrevocably submits to the jurisdiction of the state and federal courts of Manhattan Borough, New York, New York, USA for such suit and waives any objection based on forum non conveniens or venue being laid therein.

 

	
9.10

	
Assertion of Unenforceabilitv. If any provision of this Agreement is deemed illegal or unenforceable, the requirements of the provision shall remain to the full extent permissible by law and the offending portions thereof shall be deemed replaced, to the extent possible, with a provision most closely reflecting the economic effect and intent of the offending provision and the remainder of this Agreement shall continue unchanged in WI/ force and effect.

 

	
9.11

	
Entire Agreement; No Modification or Waiver. This Agreement constitutes the entire agreement between the Parties concerning its subject matter and supersedes all prior written or oral negotiations, correspondence, understandings and agreements between the Parties respecting such subject matter; provided, however, that all information disclosed prior to the Effective Date in accordance with the confidentiality agreement dated February 15, 2006, shall continue to be subject to such agreement and the Parties agree that no information shall be disclosed under such agreement after the Effective Date. Prior unexecuted drafts of this Agreement, if any, may not be used to interpret the intentions of the parties or underlying facts relating to this Agreement and the fact that certain provisions may have been added, removed or modified during negotiations shall have no interpretive significance. This Agreement shall not be modified or rescinded, except by a writing signed by both Parties, No provision of this Agreement shall be deemed modified by any action or omission or failure to object to any action that may be inconsistent with the terms of this Agreement. No waiver of a breach committed by a Party in one instance shall constitute a waiver or license to commit or continue breaches in other or like instances. By way of example only and without limiting the foregoing, this Agreement may not be modified by any statement appearing on any cheek or similar transfer of money, or by any provision appearing in any preprinted form of one Party unless expressly accepted by the other Party in a writing which expressly refers to snob preprinted form and this Agreement.

 

  

  

  

 

	
9.12

	
Reference Account. Licensee shall endorse the Licensed Software and AISystems by serving as a reference account for AISystems. Specifically and without limitation, AISystems shall be permitted to name Licensee as a customer in any of its marketing or advertising materials and otherwise publicly state that Licensee uses the Licensed Software and is a customer of AISystems. AISystems shall also be permitted to use Licenesee’s trademarks in its sales and marketing literature, which use shall be in accordance with Licensee's trademark usage guidelines set forth in SCHEDULE D (AEROMEXICO TRADEMARK USAGE GUIDELINES). Licensee shall also work with AISystems in good faith to create white papers and customer testimonials and, from time to time, respond to calls for reference from prospective AISystems customers, investors, analysts or other interested parties. Upon mutual agreement of the Parties (not to be unreasonably withheld, conditioned or delayed), Licensee shall also allow AISystems and its prospective customers to tour Licensee's facilities where the Licensed Software is being used. Both parties acknowledge that the following factors are relevant to determining whether such consent is unreasonably withheld, conditioned or delayed: (a) whether the prospective customer is a competitor of Licensee (indicating reasonableness of withholding consent), (b) whether both Licensee and the prospective customer are members of the SkyTeam Alliance (indicating unreasonableness of withholding consent), (c) the availability of keeping confidential information ( and Licensee's financial and operation data in particular), from disclosure to the prospective customer, and (d) the availability of binding the prospective customer to a confidentiality agreement. In the absence of a tour, Licensee shall use reasonable efforts to be available to the prospective customer by telephone. The provisions of this paragraph shall expire at the end of the Exclusivity Term, including any extensions thereto.

 

	
9.13

	
Export. Licensee acknowledges and agrees that the Licensed Software is subject to the export control laws and regulations of the United States, including, but not limited to, the Export Administration Regulations ("BAR"), and sanctions regimes of the U.S. Department of Treasury, Office of Foreign Asset Controls. Licensee will comply with these laws and regulations. Licensee shall not without prior U.S. government authorization, export, re-export, or transfer any goods, software, or technology subject to this Agreement, directly to any country subject to a U.S. trade embargo (currently Cuba, Iran, North Korea, Sudan, and Syria) or to any resident or national of any such country, or to any person or entity listed on the "Entity List" or "Denied Persons List. maintained by the U.S. Department of Commerce or the list of "Specifically Designated Nationals and Blocked Persons" maintained by the U.S. Department of Treasury. AISystems and Licensee confirm that their understanding the export laws do not prevent Licensee from using the Licensed Software to schedule international flights.

 

	
9.14

	
English. This Agreement, and the exhibits hereto, are prepared an executed in the English language only, which language shall be controlling in all respects. Any translations of this Agreement into any other language are for reference only and shall have no legal or other effect. All proceedings related to this Agreement shall be conducted in the English language. The Parties acknowledge having carefully read this Agreement, having obtained adequate explanations on the nature of Its provisions, and understanding the latter. The Parties hereto acknowledge that they are satisfied that this Agreement and all related documents, as the case may be, is drafted in the English language.

 

  

  

  

 

IN WITNESS WHEREOF, the parties hereto have executed this agreement on the dates and year written below.

 

Aerovias de Mexico, S.A. de C.V. ("LICENSEE")                                           ("AISystems")

 

 

	 By:	
/s/ Edmundo Olivares Dufoo

/s/ Alejandro Somuano Ventura

	  By:	 
	 	(Authorized Signature)	 	 
	 	 	 	 
	 Name:	 Edmundo Olivares Dufoo	 Name:	 
	 	 Alejandro Somuano Ventura	 	(Typed or Printed Name)
	 	(Type or Printed Name)	 	 
	 	 	 	 
	 Title:	 Sr. VP Legal Executive/Chief Planning Officer	 Title:	 
	 	 	 	 
	 Date:	 June 7th, 2007	 Date:	 

 

THIS AGREEMENT DOES NOT BIND OR OBLIGATE EITHER PARTY IN ANY MANNER UNLESS DULY EXECUTED BY AUTHORIZED REPRESENTATIVES OF BOTH PARTIES. 

 

 

  

  

  

 

SCHEDULE A (PAYMENT)

 

 

 

 

 

 

 

 

 

  

  

  

 

SCHEDULE B (MAINTENANCE AND SUPPORT)

 

 

 

 

 

 

 

 

 

 

  

  

  

 

SCHEDULE C (TRAINING)

 

 

 

 

 

 

 

 

 

  

  

  

 

SCHEDULE E (LICENSED SOFTWARE)

 

 

 

 

 

 

 

 

 

  

  

  

 

SCHEDULE F (LIST OF TERRITORY-BASED AIRLINES)f8k0310ex10vi_wolf.htm

    Exhibit 10.6

     

     

    INTELLECTUAL
PROPERTY AGREEMENT

     

    This
agreement ("Agreement") is effective December 9, 2005 ("Effective Date") and is
by and between DYNAMIC INTELLIGENCE INC. ("Dynamic"), a Barbados Corporation
having an office at First Floor, Trident House, Lower Broad Street, Bridgetown,
Barbados, and AIRLINE INTELLIGENCE SYSTEMS INC., a Delaware Corporation,
("AIS"), having an office at 2711 Centerville Road Suite 4 Wilmington, Delaware
19808 USA.

     

    In
consideration of the terms, conditions and other covenants and agreements
contained in this Agreement and other good and valuable consideration, the
receipt and sufficiency of which are acknowledged, Dynamic and AIS ("the
Parties") agree as follows:

     

    1.    DEFINITIONS

     

    For
the purposes of this Agreement, certain terms have been defined below and
elsewhere in this Agreement to encompass meanings that may differ from, or be in
addition to, the normal connotation of the defined word,

     

    1.1   "Affiliate"
of a Party means a corporation or other legal entity (a) controlled by the
Party, (b) controlling the Party, or (c) controlled by the corporation or legal
entity which controls the Party. For the purposes of this paragraph, to
"control" a corporation or an entity means to own or control, either directly or
indirectly such as by intermediary entities, (1) more than 50% of the shares or
other securities entitled to vote for election of directors (or other managing
authority) of the corporation or entity; (2) more than 50% of the equity
interest of the corporation or entity; (3) if the corporation or entity does not
have outstanding shares or securities as may be the case in a partnership, joint
venture, or unincorporated association, more than 50% of the ownership interest
representing the right to make decisions for the corporation or entity; or (4)
the maximum shares or other securities entitled to vote for election of
directors (or other managing authority) of a foreign corporation or entity
permitted by law if (i) the applicable country does not permit the Party to own
a greater share due to its nationality and (ii) the foreign corporation or
entity is substantially controlled by the Party. Notwithstanding the foregoing,
any corporation or other legal entity shall be deemed to be an Affiliate only so
long as such control exists.

     

    1.2   "Airline
Field" means the field of resource scheduling and planning in the airline
industry and airline operations, excluding military applications and Maintenance
Repair Operations. "Maintenance Repair Operations" ("MRO") means the field of
managing and optimizing the scheduling, parts inventory, shop floor
configurations, and resources for facilities that maintain and repair aircraft
By way of example, other than military applications and MRO, the Airline Field
includes resource scheduling and planning in connection with: airline ticketing,
airline route schedules, airline fleet schedules, airline crew schedules,
airline maintenance schedules, airline passenger schedules, airline and
operational relationships between the foregoing, and asset management systems
and financial reporting models that can be implemented on a computer system to
allow for dynamic adjustment of airline operations based on unforeseen
disruptions to those schedules.

     

    1.3   "AIS
Intellectual Property" means Intellectual Property that becomes or became
owned, controlled or llcensable by AIS or its Affiliates before or during the
Term. Notwithstanding the foregoing, "AIS Intellectual Property" excludes
Intellectual Property if (and solely to the extent) (a) AIS or its Affiliates
would be obligated to pay royalties or other consideration to a non-Affiliated
Third Party if the Intellectual Property is assigned to Dynamic hereunder and
(b) such obligation existed at the time AIS or its Affiliates acquired its
rights in the Intellectual Property.

     

    1.4   "Benefited
Party" means (a) AIS
to the extent it is receiving a license under Dynamic Intellectual Property
pursuant to this Agreement or (b) Dynamic to the extent it is receiving an
assignment or license of AIS Intellectual Property pursuant to this
Agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.5    "Confidential
Information" means any information disclosed by one Party ("Discloser")
to the other Party ("Recipient") in connection with this Agreement, including
but not limited to source code, specifications,
designs, plans, drawings, inventions, software, data, prototypes, methods,
processes, business and/or other technical information relating to the business
of the Parties, Notwithstanding, "Confidential Information" does not include any
information: (a) lawfully received by Recipient tree of restriction from another
source having the right to tarnish the information free of restriction; (b)
after it has become available to third parties without an obligation of
confidence without breach of this Agreement by Recipient; (c) independently
developed by individuals who did not have access to the information; (d) that,
at the time of disclosure to Recipient, was known to Recipient free of
restriction; (e) that Discloser agrees in writing is tree of such restrictions;
or (f) mat Recipient, on the advice of counsel, is required to disclose under
applicable law or other demand under lawful process, including a discovery
request in a civil litigation, if Recipient first gives Discloser notice of the
required disclosure if reasonably practical and cooperates with Discloser, at
Discloser's sole expense, in seeking reasonable protective arrangements with the
party requiring disclosure under applicable law or other demand under lawful
process (in no event shall Recipient's cooperation with Discloser require
Recipient to take any action which, on the advice of Recipient's counsel, could
result in the imposition of any sanctions or other penalties against
Recipient).

     

    1.6   "Dynamic
Intellectual Property" means Intellectual Property that becomes or became
owned, controlled or licensable by Dynamic or its Affiliates before or during
the Term, including AIS Intellectual Property assigned to Dynamic pursuant to
this Agreement. Notwithstanding the foregoing, "Dynamic Intellectual Property"
excludes Intellectual Property if (and solely to the extent) (a) Dynamic would
be obligated to pay royalties or other consideration to a non-Affiliated Third
Party if the Intellectual Property is licensed to AIS hereunder and (b) such
obligation existed at the time Dynamic acquired its rights in the Intellectual
Property.

     

    1.7   "Exploit"
includes make, use, sell, offer for sale, import, reproduce, distribute
(including but not limited to by sale, rental, lease, or lending), perform,
display, modify, adapt, prepare derivative works of, make substantial and
insubstantial alterations, translate into any language, aggregate, have made,
license, sublicense, grant sublicensing rights, in any medium whatsoever whether
now known or hereafter devised, or otherwise exploit.

     

    1.8   "Intellectual
Property" means any and all of the following items that are or were
created, authored, invented, conceived, reduced to practice, made, filed or
derived (collectively "created"), as the case may be, before the Effective Date
or during the Term (regardless of the location where it was
created):

     

    
      	(a)	
              copyrightable
      works, copyrights and computer software (including data and related
      documentation), whether or not the subject of a copyright application,
      copyright registration or renewed copyright,

            
	 	 
	(b)	inventions
      (whether or not the subject of a patent or patent application, and whether
      or not reduced to practice), improvements, conceptions, patents, patent
      applications, patent disclosures, industrial designs, utility models,
      industrial design applications and industrial
    registrations,
	 	 
	(c)	continuations,
      continuations-in-part, divisionals, reissues, reexaminations, revisions,
      extensions, substitute applications (as defined in MPEP § 201.09) of
      patents or patent applications filed before the Effective Date or during
      the Term, and other patents which claim the benefit of the filing date of
      a patent or patent application otherwise filed before the Effective Date
      or during the Term, but solely to the extent it claims subject matter that
      was disclosed in a patent or patent application filed before the Effective
      Date or during the Term,
	 	 
	(d)	moral
      rights,
	 	 
	(e) 	
              trade
      secrets and know-how, and

            
	 	 
	(f) 	
              any
      other proprietary, intellectual or intangible property protected by the
      law of any jurisdiction or governmental
agency

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
the foregoing, "Intellectual Property" does not include trademarks, service
marks, or similar indicia of origin.

     

    1.9   "Transferred
Intellectual
Property" means (a) Dynamic Intellectual Property to the extent such
Intellectual Property is being licensed from Dynamic to AIS pursuant to this
Agreement or (b) AIS Intellectual Property to the extent AIS is assigning or
licensing AIS Intellectual Property to Dynamic pursuant to this
Agreement.

     

    1.10   "Transferring
Party" means (a) AIS to the extent it is assigning or licensing AIS
Intellectual Property to Dynamic pursuant to this Agreement or (b) Dynamic to
the extent it is
licensing Dynamic Intellectual Property to AIS pursuant to this
Agreement

     

    1.11   "Non-Airline
Field" means any field(s) not included in the Airline Field. By way of
example, the Non-Airline Field includes any field unrelated to airline resource
scheduling and planning. By further way of example only, the Non-Airline Field
includes, but is not limited to, resource scheduling and planning in connection
with: the military; transportation of goods by car, ship, rail or truck;
warehousing; supply-chain management; car-rental fleets; electricity; and
natural gas, oil and telecommunication networks.

     

    1.12   "Reasonable
Efforts" means that the obligated Party is required to pursue all reasonable
methods to accomplish the applicable objective using resources reasonably
available to it. Such obligation, however, does not require that the obligated
Party incur liability, nor does it require that the obligated Party act in a
manner that would be contrary to normal commercial practices in order to
accomplish the objective. The fact that the objective is not actually
accomplished is no indication that the obligated Party did not in feet utilize
its reasonable efforts in attempting to accomplish the
objective.

     

    1.13   "Term"
shall mean the period beginning on the Effective Date and ending three (3) years
thereafter unless the Term is terminated or extended in accordance with the
provisions hereof.

     

    2.   LICENSE
AND ASSIGNMENT

     

    2.1   Exclusive
License to AIS. Dynamic hereby grants to AIS an exclusive, fully paid up,
worldwide and
perpetual license to Exploit the Dynamic Intellectual Property (including
Dynamic Intellectual Property acquired
from AIS pursuant to this Agreement) solely in the Airline Field, including the
right under Dynamic Intellectual
Property to Exploit any product or service in the Airline Field. In the event
Dynamic is prohibited by law
(at any time) or contract (provided such contractual prohibition existed at the
time Dynamic acquired its rights
in the Intellectual Property) from exclusively licensing particular Dynamic
Intellectual Property to AIS, Dynamic
shall, to the maximum extent permitted by law or contract, grant AIS a
non-exclusive fiilly paid up, worldwide
and perpetual license to Exploit the Dynamic Intellectual Property (including
Dynamic Intellectual, Property
acquired from AIS pursuant to this Agreement) solely in the Airline Field,
including the right under Dynamic
Intellectual Property to Exploit any product or service in the Airline Field.
Notwithstanding this grant, no
license is granted in Dynamic Intellectual Property pursuant to this paragraph
if the Dynamic Intellectual Property
is incapable of Exploitation in the Airline Field. TTie foregoing license does
not relieve AIS of its obligations
with respect to Confidential Information disclosed by Dynamic.

     

    2.2   Assignment/License
to Dynamic.

     

    
      	(a)	AIS
      hereby irrevocably assigns to Dynamic all right, title, and interest,
      throughout the world, in the AIS Intellectual Property, including the
      right to Exploit the AIS Intellectual Property, and including the right to
      collect past damages and obtain and own renewals or extensions including
      copyright renewals, without any accounting or any other obligation owed to
      AIS, all to the maximum extent permitted by law. Dynamic shall retain
      ownership of the AIS Intellectual Property regardless of any termination
      or the basis of termination of this Agreement, Dynamic has sole discretion
      to register, enforce or protect the AIS Intellectual
      Property, including filing and controlling copyright applications and
      patent applications in its own name. AIS acknowledges that it retains no
      rights to any AIS Intellectual Property except as expressly granted
      herein. By way of example only, AIS has no right to Exploit the AIS
      Intellectual Property in the Non-Airline Field. To the extent permissible
      by law including United States Copyright Law and without implying an
      employee-employer relationship between AIS and Dynamic, AIS agrees that
      AIS Intellectual Property is "work made for hire" owned solely by
      Dynamic.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	(b)	
                m
      the event AIS is prohibited by law (at any time) or contract (provided
      such contractual prohibition existed at the time AIS acquired its rights
      in the Intellectual Property) from assigning particular AIS Intellectual
      Property to Dynamic, or Dynamic assigns Dynamic Intellectual Property to
      AIS pursuant to this Agreement, AIS shall, to the maximum extent permitted
      by law or contract, grant Dynamic a fully paid up, worldwide and perpetual
      license to Exploit the AIS Intellectual Property solely in the Non-Airline
      Field, including the right under AIS Intellectual Property to Exploit any
      product or service in the Non-Airline Field. Such license shall be
      exclusive to the maximum extent permitted by law or
    contract.

              
	 	 
	(c)	
                Notwithstanding
      mis Section 2.2, no assignment or license is granted in AIS Intellectual
      Property pursuant to this Section if the AIS Intellectual Property is
      incapable of Exploitation in the Non-Airline Field.

              
	 	 
	(d)	AIS
      warrants that all AIS Intellectual Property that becomes or became owned,
      controlled or licensable by AIS' Affiliates before or during the Term
      shall be assigned to AIS for assignment or licensing to Dynamic pursuant
      to this Section 2.2.

      

    

     

    2.3   No
Other Rights. Each Party acknowledges that no other rights, other than
those expressly set forth herein, are granted or implied. Dynamic retains the
right to Exploit its Dynamic Intellectual Property for all purposes not
otherwise precluded by the exclusive license granted herein, without accounting
or disclosure to AIS. By way of example, in the event Dynamic acquires
Intellectual Property that is capable of use in both Airline and Non-Airline
Fields, Dynamic shall retain full ownership of such Intellectual Property
although Dynamic shall not have the right to Exploit the Intellectual Property
in the Airline Field and AIS shall not have the right to Exploit the
Intellectual property in the Non-Airline Field.

     

    2.4   Third
Party Limitations. The Transferring Party shall use Reasonable Efforts to
notify the Benefited Party if the Transferred Intellectual Property is subject
to third party restrictions that limit the Benefited Party's right to Exploit
the Transferred Intellectual Property.

     

    2.5   Joint-Qwnership.
The foregoing rights and restrictions also apply to Intellectual Property
jointly created by the Parties.

     

    2.6   Sufficient
Rights. The Transferring Party represents that, to its knowledge, it has
the right to grant the assignments and licenses set forth in this
Agreement.

     

    2.7   Unfiled
Inventions. For the purposes of this paragraph, an "Unfiled Invention" is
an invention that (a) comprises Dynamic Intellectual Property exclusively
licensed to AIS hereunder and (b) was not claimed in a patent or patent
application. AIS may provide Dynamic with notice of its demand that Dynamic file
a patent application on an Unfiled Invention; such notice shall identify the
Unfiled Invention with reasonable particularity. Within ninety (90) days of such
notice, Dynamic shall, in its sole discretion, either (a) file a patent
application claiming the Unfiled Invention, (b) permit AIS to file patent
applications on the Unfiled Invention, or (c) provide AIS with notice that
Dynamic is not exercising either option "a" or "b" because (1) Dynamic has
reasonable trade secret concerns or (2) Dynamic is prohibited by law or contract
(provided such contractual prohibition existed at the time AS sent its demand
notice) from exercising such options. If Dynamic elects option "b", then (i)
Dynamic shall assign sufficient rights to AIS to permit AIS to file and own
patent applications and patents claiming the Unfiled Invention, (ii) AIS shall
grant Dynamic a license under such patent applications and patents
pursuant
to Section 2.2(b), (iii) AIS acknowledges that this paragraph does not give it
the right to rile patent applications containing claims that cover Dynamic
Intellectual Property other than the Untiled Invention, (iv) AIS acknowledges
that it does not obtain any right in related Dynamic Intellectual Property by
nature of the assignment of the right to file patent applications on the Unfiled
Invention (by way of example, Dynamic's assignment of the right to file a patent
application on a method performed by software does not include assignment of the
copyrights in the software or other patentable methods performed by the
software), and (v) AIS shall be bear all the costs of filing and maintaining
such patent applications and patents,

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    2.8   Expiring
Patents. For the purposes of this paragraph, an "Expiring Patent" is a
patent or patent application (a) to the extent it claims Dynamic Intellectual
Property exclusively licensed to AIS hereunder and (b) that Dynamic intends to
abandon or allow to go abandoned for failure to take some action, such as the
failure to pay maintenance fees. AIS may provide Dynamic with notice of its
demand that Dynamic take action to prevent the abandonment of an Expiring
Patent; such notice shall identify the Expiring Patent with reasonable
particularity. Within ninety (90) days of such notice, Dynamic shall, in its
sole discretion, either (a) make Reasonable Efforts to prevent the abandonment
of the Expiring Patent, (b) assign the Expiring Patent to AIS, or (c) provide
AIS with notice that Dynamic is not exercising either option "a" or "b" because
(1) the Expiring Patent is not publicly available and Dynamic has reasonable
trade secret concerns or (2) Dynamic is prohibited by law or contract (provided
such contractual prohibition existed at the time AIS sent its demand notice)
from exercising such options. If Dynamic elects option "b", then (i) Dynamic
shall assign the Expiring Patent to AIS, (ii) AIS shall grant Dynamic a license
under the Expiring Patent pursuant to Section 2.2(b), (iii) AIS acknowledges
that this paragraph does not give AIS the right to file patent applications
containing claims other than those contained in the Expired Patent at the time
of the assignment, (iv) AIS acknowledges that it does not obtain any right in
related Dynamic Intellectual Property by nature of the assignment of Expired
Patent, and (v) AIS shall be bear all the costs of filing and maintaining such
patent applications and patents.

     

    3.    ACKNOWLEDGEMENT OF
CONSIDERATION

     

    3.1

     

    4.    DISCLOSURE OF
INTELLECTUAL PROPERTY

     

    4.1   Exchange
of Information. The Transferring Party shall disclose the Transferred
Intellectual Property to the Benefited Party at the Benefited Party's request.
The Parties agree to use good faith efforts to agree on procedures which promote
the exchange of Transferred Intellectual Property without unnecessarily
burdening the Transferring Party, including disclosing the Transferring Party's
intentions with respect to filing and maintaining patent applications on the
Transferred Intellectual Property. In the event the Parties cannot agree on such
procedures, the procedures may be determined by binding arbitration at the
request of a Party. Each Party hereby acknowledges mat to the extent its
employees, independent contractors and other entities are providing products or
services to both Parries, such employees, independent contractors and other
entities may inform the other Party of Transferred Intellectual Property that is
the subject of a license or assignment to the other Party.

     

    4.2   Software.
This Section 4.2 applies to the extent Transferred Intellectual Property
includes software.

     

    
      	
              (a)

            	
              Source
      Code. To the extent the Transferring Party is not prevented by
      obligations to third parties and to the extent the formats are available,
      the Transferring Party shall disclose the software to the Benefited Party
      in source code format (including programmer comments and associated
      documentation), object code format, and any other format in which the
      Transferring Party keeps the
software.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)  

            	
              No
      Reverse Engineering. A Party obtaining software in object code
      format from a Transferring Party, who in turn obtained and is obligated to
      maintain such software in object code format pursuant to an agreement with
      a third party, shall neither disassemble the software, attempt to derive
      its source code, nor similarly reverse engineer the object code; however,
      to the extent certain reverse engineering activities may be permitted by
      law in spite of the Party's agreement not to reverse engineer, this
      sentence shall not apply to such activities. This obligation shall survive
      termination of this
Agreement.

            

    

     

    
      	
              (c)  

            	
              No
      Maintenance. Neither the Transferring Party nor the Benefited Party
      has the obligation under this Agreement to maintain, update or support the
      software.

            

    

     

    
      	
              (d)  

            	
              No
      Malicious Code. Unless clearly and conspicuously disclosed by the
      Transferring Party to the Benefited Party upon or prior to delivery, the
      software shall not contain any feature intended to (i) fully or partially
      disable such software (such as "time bombs"); (ii) provide remote access
      to such software (such as "back door" passwords for software); (iii)
      modify or transfer any data without the express
      consent of a user of the data; or (iv) act as a virus or similar
      intentional infirmity-

            

    

     

    4.3   Costs.
Each Party will be responsible for the costs it incurs in carrying out its
obligations under this Agreement.

     

    5.    CONFIDENTIALITY

     

    5.1   Disclosures
to Third Parties. The Recipient of the Discloser's Confidential
Information shall not disclose
the Confidential Information to a third party unless:

     

    
      	
              (a)  

            	
              thepiscloser
      consents to such disclosure;
or

            

    

     

    
      	
              (b)  

            	
              the
      Confidential Information is Transferred Intellectual Property, and the
      Recipient is the Benefited Party of the Transferred Intellectual Property,
      and

            

    

     

    (i)           the
disclosure is made for the purpose of the Benefited Party enjoying its rights or
satisfying its obligations
under this Agreement (by way of example, by distributing software to the
Benefited Party's customers
or outsourcing manufacturing) or the disclosure is made pursuant to one of the
exceptions set forth
in Section 12.6; and

     

    (ii)          the
third party is prohibited from disclosing the Confidential Information to any
other third party, provided,
however, that the third party may disclose the Confidential Information to other
third parties if (i)
the other third parties are similarly bound to protect Confidential Information
in accordance with this Section
5 ("Confidentiality"), (ii) the third party apprises the other third parties of
the confidentiality of the information
and restrictions applicable thereto, and (iii) the Benefited Party approved the
disclosure prior to
its occurrence.

     

    At
the Discloser's request, the Recipient shall use Reasonable Efforts to identify,
to the Discloser, the third parties to whom the Discloser's Party's Confidential
Information has been disclosed.

     

    5.2   Lead
Time. Notwithstanding any other provision of this Agreement to the
contrary, the Discloser may,
upon request to the Recipient, prevent the Recipient from disclosing its
Confidential Information to any third
party for a period of up to ninety (90) days after the Confidential Information
is first disclosed to the Recipient.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    5.3   Reasonable
Precautioas. The Recipient, including third parties to whom the Recipient
has provided the Discloser's Confidential Information, shall take reasonable
precautions to prevent the inadvertent or unauthorized disclosure of the
Discloser's Confidential Information.

     

    5.4   Relationship
to Licenses and Assignments. Nothing in this Section 5
("Confidentiality") may be interpreted as giving Dynamic, its customers,
suppliers, or independent contractors, or any other entity to whom Dynamic
conveys AIS' Confidential Information, any right to Exploit AIS1
Confidential Information in the Airline Field. Nothing in this Section 5
("Confidentiality") may be interpreted as giving AIS, its customers, suppliers,
or independent contractors, or any other entity to whom AIS conveys Dynamic's
Confidential Information, any right to Exploit Dynamic's Confidential
Information in the Non-Airline Field. If Confidential Information comprises AIS
Intellectual Property assigned to Dynamic hereunder, such Confidential
Information shall be considered Dynamic Confidential Information and Dynamic
shall be considered the Discloser of such Confidential Information for the
purposes of this Section S.

     

    5.5   Duration
of Confidentiality Obligation. Recipient's duty to protect Confidential
Information commences upon receipt of the Confidential Information and shall
continue beyond the termination of this Agreement.

     

    6.    ENFORCEMENT

     

    6.1   Cooperation.
The Parties will provide reasonable cooperation to one another with respect to
enforcing Transferred Intellectual Property against unauthorized activity by
third parties, and use good faith efforts to reach a mutual agreement to handle
actual or potential inrringement of Transferred Intellectual Property by third
parties. Absent such mutual agreement and to the maximum extent permitted by
law, the other paragraphs of this Section 6 ("Enforcement") shall
apply.

     

    6.2   Notice.
A Party shall give the other Party at least ninety (90) days notice before
filing a litigation relating to Transferred Intellectual Property against a
third parry, or before taking any action which notifies a third party of its
infringement or likely infringement of Transferred Intellectual Property;
provided, however, that such notice period may be shortened to the extent
necessary for a Party to prevent irreparable harm occurring during such ninety
(90) period.

     

    6.3   Enforcement
Bxpenses. Each Party shall bear its own expenses in any litigation
relating to enforcement of the Transferred Intellectual
Property.

     

    6.4   Necessary
Parties. If a Parry's ("the Necessary Party" for the purposes of this
paragraph) cooperation is necessary in order to prevent a third party infringer
from materially prejudicing the rights of the other Party ("the Prejudiced
Party" for the purposes of mis paragraph) in Transferred Intellectual Property,
then the Necessary Party shall use Reasonable Efforts to provide cooperation
with respect to such inrringement at the request of the Prejudiced Party. If (i)
the Prejudiced Party brings or intends to bring a litigation against a third
party nifringer of Transferred Intellectual Property, and (ii) the Necessary
Party's participation in the litigation as a named party is necessary in order
to prevent the dismissal of the litigation or to prevent denial of the filing
parry's requested relief, then the Necessary Party (A) shall use Reasonable
Efforts to join such litigation and (B) may elect, within thirty (30) days of
joining, to require the Prejudiced Party to reimburse the Necessary Party's for
its reasonable attorneys fees and out-of-pocket expenses. If the Necessary Party
exercises such election, the Necessary Parry shall give its share (if any) of
the award from the litigation to the Prejudiced Party.

     

    6.5   Award.
The total award collectively granted to one or both the Parties as a result of
inrringement of Transferred Intellectual Property shall be allocated pro-rata
based on the extent of infringement in the Parties' respective exclusively
licensed or retained fields, after reimbursement of the Parties' reasonable
attorneys fees and out-of-pocket expenses relating to the enforcement of the
Transferred Intellectual Property against the infringer.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    7.    THIRD PARTY
NOTICES

     

    7.1   Notice
of Third Party Defenses. A Party shall use Reasonable Efforts to promptly
provide the other Party with notice in the event such Party receives a written
statement from an alleged third party infringer stating that that the
Transferred Intellectual Property (whether transferred to or from such Party
hereunder) or Exploitation thereof is not infringed, invalid or
unenforceable.

     

    7.2   Notice
of Third Party Allegations. A Party shall use Reasonable Efforts to
promptly provide the other Party with notice in the event such Party receives a
written statement from ft third party stating that that the Transferred
Intellectual Property (whether transferred to or from such Party hereunder) or
Exploitation thereof infringes the third party's Intellectual
Property.

     

    7.3   No
Knowledge. The Transferring Party represents that, as of the Effective
Date, its belief is that the Transferred Intellectual Property or Exploitation
thereof does not infringe a third party's Intellectual
Property.

     

    8.    COMMON LEGAL
INTEREST

     

    8.1   Confirmation.
The Parties confirm that they may be exchanging privileged Confidential
Information in connection with their common legal interests relating to the
Transferred Intellectual Property, including pursuing a joint strategy when
evaluating the applicability of Transferred Intellectual Property to potential
third party infringers and protecting the Transferred Intellectual Property, by
way of example, by filing patent applications.

     

    8.2   No
Waiver. The Parties agree that the disclosure of privileged Confidential
Information in furtherance of the common legal interest is not a waiver of any
applicable privilege (work-product, attorney-client or otherwise). The Parties
agree not to disclose the privileged Confidential Information to any third
party, and further agree to assist in retaining any applicable privilege. The
recipient of privileged Confidential Information shall only use the information
for the purpose of pursuing the common legal interest.

     

    8.3   Manner
Disclosed Irrelevant.
The protections set forth in this section shall apply regardless of the manner
in which the privileged Confidential Information is exchanged. By way of
example, discussions between an attorney representing one Party and an employee
of the other Party pursuant to the common legal interest shall be privileged and
subject to this Section 8.

     

    8.4   Lfolfrrtnna.
Nothing in this Section is intended to require one party to disclose
privileged information to the other.

     

    8.5   Cessation
of Exchange. Either Party may terminate their rights and obligations
under this Section 8 at any time by written letter to the other Party. However,
the provisions of this Section shall continue with respect to any privileged
Confidential Information disclosed prior to the termination of this Section or
Agreement.

     

    9.    DISCLAIMERS

     

    9.1   As
Is. Transferred Intellectual Property is provided to the Benefited Party
"AS IS", The Benefited Party assumes total responsibility and risk for its
Exploitation of the Transferred Intellectual Property including the risk of any
defects or inaccuracies therein. THE TRANSFERRING PARTY MAKES NO WARRANTIES,
EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, TITLE OR NON INFRINGEMENT OR ANY WARRANTY
ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE. THE
TRANSFERRING PARTY DOES NOT WARRANT THAT THE TRANSFERRED INTELLECTUAL PROPERTY
WILL BE ERROR FREE OR THAT THE TRANSFERRED INTELLECTUAL PROPERTY WILL MEET THE
BENEFITED PARTY'S REQUIREMENTS. THE DISCLAIMERS AND PROVISIONS
OF THIS PARAGRAPH ARE LIMITED TO THE GREATEST EXTENT PERMITTED BY APPLICABLE
LAW.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    9.2   No
Special Damages. TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, IN
NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL, PUNITfVE, RELIANCE OR SPECIAL DAMAGES, INCLUDING WITHOUT
LIMITATION, DAMAGES FOR LOST PROFITS, LOSS OF ADVANTAGE, LOSS OF SAVINGS, LOSS
OF REVENUES OF ANY KIND, INCREASED COST OF OPERATIONS, BUSINESS INTERRUPTION OR
LOSS OF INFORMATION, EVEN IF A PARTY KNEW OR HAD BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES.

     

    10.    TERM

     

    10.1   Duration.
The rights and obligations of this Agreement shall be effective during the
Term.

     

    10.2   Renewal.
The Term shall be automatically and continuously extended in one (1) year
increments at
the end of the then-current Term unless (a) a Party provides notice of
non-renewal at least ninety (90) days before
the then-current Term or (b) this Agreement is terminated prior to the end of
the then-current Term. 

     

    10.3   Early
Termination. Either Party may terminate this Agreement:

     

    (a)   in
accordance with any terms of this Agreement which expressly provide for
termination;

     

    (b)   upon
thirty (30) days prior written notice if the other Party has breached a material
obligation under this Agreement and such breach remains uncured during such
thirty (30) day period; or

     

    10.4    Effect of Termination
and Survival. Upon termination of this Agreement, all rights and obligations of
the Parties, shall terminate except that the rights and obligations of the
Parties under this Agreement which expressly or by their nature would continue
beyond the termination of this Agreement shall remain in effect and survive
termination of this Agreement, including the assignment and perpetual licenses
under Section 2 ("License"), Section 5.5 ("Duration of Confidentiality
Obligation"), Section 6 ("Enforcement"), Section 7 ("Third Party Noficesu)l and
Section 8 ("Common Legal Interest"). Notwithstanding. such specific termination
rights, each Party reserves all of its other legal rights and equitable
remedies.

     

    II.    ASSIGNMENT

     

    11.1   Limited
Assignment Rights. Neither Party shall have the right to assign or
transfer any of its rights and obligations under this Agreement (in insolvency
proceedings, by mergers, acquisitions or otherwise) without the other Parry's
written consent except that all rights and obligations may be assigned to an
Affiliate or third party where the assignment is in connection with the sale,
reorganization or other transfer of substantially all of the relevant business
of the assigning party.

     

    11.2   No
Release. The assignment of this Agreement by the Benefited Party shall
not release the assignee of any liability for infringement or unauthorized use
of Transferred Intellectual Property or other claims prior to the
assignment.

     

    11.3   Termination Option.Upon receiving
notice of the assigning Party's assignment of or intent to assign this
Agreement, the other Party may terminate this Agreement by providing notice to
the assigning Party within thirty (30) days of such notice of assignment or
intent to assign. If the assignment occurs and this Agreement is terminated in
accordance with this paragraph, then termination shall be effective the moment
before the assignment.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    11.4   Change
in Ownership, Any change in ownership of a Party that results in a change
in control of a Party shall be deemed an assignment to a third party for the
purposes of this paragraph.

     

    11.5   Transfer
of Intellectual Property. Nothing in this paragraph shall be deemed to
restrict the Transferring Party's right to transfer ownership in the Transferred
Intellectual Property to third parties as long as such transfer preserves the
Benefited Parry's rights hereunder.

     

    11.6   Void
Assignments. Any assignment or other transfer of rights and obligations
hereunder which is inconsistent with the foregoing shall be null and void ab
initio.

     

    12.
GENERAL TERMS

     

    12.1   Relationship
of the Parties. In performing this Agreement, each of the Parties will
operate as, and have the status of, an independent contractor. Except as may be
expressly set forth in this Agreement, neither Party will
have the right or authority to assume or create any obligations or to
make any representations, warranties or commitments on behalf of the other
Party, whether express or implied, or to bind the other Party in any respect
whatsoever. Nothing in this Agreement shall be construed as forming any
partnership, joint venture, agency, employment, franchise, distributorship,
dealership or other similar or special relationship between the
Parries.

     

    12.2   Rules
of Construction. As used In (his Agreement, (a) the words "herein,"
"hereunder" and other words of similar import refer to this Agreement as a
whole, including any exhibits and schedules as the same may be modified from
time to time, and not to any subdivision of this Agreement; (b) the terms
"including," "by way of example" or any variation thereof means "including but
not limited to" and "by way of example only and without limitation,"
respectively, and shall not be construed to limit any general statement that it
follows to the specific or similar items or matters immediately following it;
(c) descriptive headings and titles are inserted for convenience of reference
only and do not constitute a part of and shall not be utilized in interpreting
this Agreement; (d) explicit references to a particular section shall be deemed
to include a reference to its subsections, if any, and (e) the word "third
party" means an entity other than a party to this Agreement. This Agreement
shall be fairly interpreted in accordance with its terms and without any
presumption in favor of or against either Party regardless of the
drafter.

     

    12.3   Notice.
Unless otherwise provided in this Agreement, all notices, consents, approvals,
waivers and the like made hereunder shall be in written English to the addresses
set forth below, shall reference this Agreement and shall be sent by any of the
following methods; (a) certified mall, postage-prepaid, return-receipt
requested, (b) a delivery service which requires proof of delivery signed by the
recipient or (c) properly-transmitted facsimile followed by written confirmation
in accordance with methods (a), (b) or first-class U.S. mail. The date of notice
shall be deemed to be the date it was first received or refused. A Party may
change its address for notice by written notice in accordance with this
paragraph.

     

    
      	
              (a)  

            	
              Notices
      to Dynamic shall be sent to: First Floor, Trident House, Lower Broad
      Street, Bridgetown, Barbados, Fax (246)
  436-9541.

            

    

     

    
      	
              (b)  

            	
              Notices
      to AIS shall be sent to: 2711 Centerville Road Suite 4 Wilmington,
      Delaware 19808 USA, Fax
(302)397-0769.

            

    

     

    12.4   Equitable
Remedies. The Parties recognize that money damages may not be an adequate
remedy for
any breach or threatened breach of any obligation hereunder by the other Party
involving Intellectual Property and
that such Party suffer immediate and irreparable harm as a result. The Parties
therefore agree that in addition to
any other remedies available hereunder, by law or otherwise, such Party may be
entitled to obtain injunctive relief
against any such continued breach by the other party of such
obligations.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    12.5   Third
Party Beneficiaries. This Agreement is not intended to be for the benefit
of and shall not be enforceable by any third party. Nothing in this Agreement,
express or implied, is intended to or shall confer on any third party any rights
(including third-party beneficiary rights), remedies, obligations or liabilities
under or by reason of this Agreement. This Agreement shall not provide third
parties with any remedy, claim, liability, reimbursement, cause of action or
other right in excess of those existing without reference to the terms of this
Agreement. No third party shall have any right, independent of any right that
exists irrespective of this Agreement, to bring any suit at law or equity for
any matter governed by or subject to the provisions of this
Agreement.

     

    12.6   No
Disclosure Of Agreement Neither Party shall disclose, expressly or by
implication, the provisions of this Agreement including provisions from
unexecuted prior drafts of this Agreement, unless such disclosure (a) is to a
financial auditor, potential investor, potential acquirer, financial advisor,
potential lender or legal advisor of the party, or an advisor of the foregoing,
who is contractually or legally obligated not to disclose the provisions of this
Agreement to third parties and has a need to know the provisions herein, or (b)
meets the requirements to the exceptions set forth in the definition of
Confidential Information if this Agreement were considered Confidential
Information of the other Party, In the event a party is compelled to disclose
this Agreement to a governmental authority in connection with regulatory
obligations, including to a governmental taxing authority in order to verify its
tax obligations or a regulatory agency in connection with a public offering,
such party may disclose this Agreement in confidence to such authority without
obtaining the other party's prior consent. This paragraph shall survive
termination of the Agreement Notwithstanding, each Party has the right to
disclose to third parties during the Term that it is a licensee of the other
Party.

     

    12.7   Applicable
Law and Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware without regard to its
conflicts of law rules.

     

    12.8   Force
Majeure. Neither Party shall be held responsible for any delay or failure
In performance of any part of this Agreement to toe extent such delay or failure
is caused by fire, flood, explosion, war, strike, embargo, government
requirements, civil or military authority, court orders, industry-wide shortage
of goods, act of God, or other similar causes beyond its reasonable control
("force majeure events"). The Party affected by the other's inability to perform
may elect to: (a) suspend this Agreement for the duration of the force majeure
event or (b) terminate this Agreement upon sixty (60) days notice if the delay
or nonperformance continues during such sixty (60) days.

     

    12.9   Assertion
of Unenforceability. If any provision of this Agreement is deemed illegal
or unenforceable, the requirements of the provision shall remain to the full
extent permissible by law and the offending portions thereof shall be deemed
replaced, to the extent possible, with a provision most closely reflecting the
purpose of the offending provision.

     

    12.10   Arbitration.
Any claims of any nature relating to this Agreement, including the breach,
termination or validity thereof, whether based on contract, tort, statute, fraud
or any other legal theory (the "Claim"), shall be resolved solely and
exclusively by arbitration by the American Arbitration Association ("AAA") in
accordance with this paragraph and its Commercial Arbitration Rules to the
extent such rules do not conflict with this Agreement. The arbitrator shall
comprise a panel of three (3) persons selected from a list provided by the AAA.
Requests for temporary injunctive relief may be submitted to a court of
competent jurisdiction if the arbitrator has not yet been appointed but the
arbitrator shall have the authority to modify any injunctive relief granted by
such a court The arbitration award shall be made final within one (1) year of
commencement and may be entered by either Party in any court having competent
jurisdiction. Each Party shall bear its own expenses, but those related to the
compensation of the arbitrator shall be borne equally. The existence and
contents of the entire arbitration shall be maintained by all participants as
confidential and shall not be disclosed to any third party except as required by
law. A party's request for arbitration shall not be deemed a waiver of the right
of the party, if any, to terminate the Agreement. The arbitrators shall not have
the authority to award punitive damages. The Parties agree that the existence
and contents of the entire arbitration, including the award,
snail be deemed a compromise of a dispute under Rule 408 of the Federal Rules of
Evidence, shall not be discoverable in any proceeding, shall not be admissible
in any court (except for the enforcement thereof) or arbitration and shall not
bind or collaterally estop either Party with respect to any claim or defense
made by any third parry.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    12.11   Entire
Agreement: No Modification or Waiver. This Agreement constitutes the
entire agreement between the Parties concerning its subject matter and
supersedes all prior written or oral negotiations, correspondence,
understandings and agreements between the Parties respecting such subject
matter. Prior unexecuted drafts of this Agreement may not be used to interpret
the Intentions of the parties or underlying facts relating to this Agreement and
the fact that certain provisions may have been added, removed or modified during
negotiations shall have no interpretive significance. This Agreement shall not
be modified or rescinded, except by a writing signed by both Parties. No
provision of mis Agreement shall be deemed modified by any action or omission or
failure to object to any action that may be inconsistent with the terms of this
Agreement. No waiver of a breach committed by a Party in one instance shall
constitute a waiver or license to commit or continue breaches in other or like
instances.

     

    12.12   Counsel.
Each Party acknowledges that, in connection with the negotiation and execution
of this Agreement, it had the opportunity for independent legal advice by
counsel of its own selection and experienced in the relevant subject matter
areas and domiciles of the Parties, that each Party fully understands the facts, that
each Party has been fully informed as to its legal rights and obligations, and
that each Party is signing the Agreement freely and
voluntarily. 

     

     

     

    
      	DYNAMIC
      INTELLIGENCE INC.	 	AIRLINE INTELLIGENCE SYSTEMS INC. 
      	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By: 	
              /s/
      Barry Skinner

            	 	By:	
              /s/
      Stephen Johnston

            	 
	 	(Authorized
      Signature)	 	 	(Authorized
      Signature)	 
	 	 	 	 	 	 
	
              Name:

            	Barry
      Skinner	 	Name:	Stephen
      Johnston	 
	 	
               

            	 	 	
               

            	 
	 	 	 	 	 	 
	
              Title: 

            	
              President

            	 	
              Title:

            	
              President

            	 
	 	 	 	 	 	 

    

     

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
       

      OCTOBER
2006 AMENDMENT TO INTELLECTUAL PROPERTY AGREEMENT

       

      This
amendment ("Amendment") is effective as of October 11, 2006 and is by and
between DYNAMIC INTELLIGENCE INC, ("Dynamic1'), a
Barbados Corporation having an office at First Floor, Trident House, Lower Broad
Street, Bridgetown, Barbados, and AIRLINE INTELLIGENCE SYSTEMS INC, a Delaware
Corporation, ("AIS"), having an office at 4122 Factorla Blvd. SE, Suite 310,
Bcllcvue, WA 98006, USA.

       

      In
consideration of the terms, conditions and other covenants and agreements
contained in this Amendment and for other good and valuable consideration, me
receipt and sufficiency of which are acknowledged, Dynamic and AIS ("the
Parties") agree as follows;

       

      1.    The
definition of "Airline Field" in Section 1.2 of the Intellectual Property
Agreement
between the Parties dated December 9,2005 (hereafter, the "Prior Agreement")
shall be
deleted as of the effective date of tins Amendment and replaced with the
following definition of
"Airline Field";

       

      1.2
"Airline Field"
means all of the following fields within the airline industry and airline'
operations: (a) schedule planning, revenue management, reservations, and
Irregular operations, (b) Maintenance Repair Operations, and (o) Airline
Performance Travel Insurance.. Notwithstanding the foregoing definition,
"Airline Field" excludes military applications. By way of example, other than
military applications, the Airline Field includes schedule planning, revenue
management; reservations, and irregular operations in connection with: airline
ticketing, airline route schedules, airline fleet schedules, airline crew
schedules, airline maintenance schedules; airline passenger schedules, airline
and operational relationships between the foregoing, and asset management
systems and financial reporting models that, can be implemented on a computer
system to allow for dynamic adjustment of airline operations based on unforeseen
disruptions to those schedules.

       

      2.    The following
sections 1.14 and 1.15 shall be added to the Agreement as of the effective
date of this Amendment

       

      1.14 "Maintenance
Repair Operations" ("MRO") means the field of managing and optimizing the
scheduling, parte inventory, shop floor configurations, and resources for
facilities that maintain and repair aircraft,

       

      1.15 "Airline
Performance Travel Insurance" means the field of offering insurance products to
airline passengers based on whether the airlines satisfied predefined service
performance requirements in connection with the passengers' airline flights. By
way of example, Airline Performance Travel Insurance includes the service of
paying passengers, in exchange for receiving a .premium from the passengers, an
amount commensurate with whether and how much a flight's arrival is
delayed,

       

      3.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      4.    Absent mutual
agreement by the Parties to the contrary, AIS shall reimburse Dynamic for the
reasonable out-of-pocket payments incurred by Dynamic in connection with filing
and maintaining Dynamic Intellectual Property licensed to AIS, including payment
of maintenance fees for issued patents, patent application filing and annuity
fees, prosecution-attorney fees, and expenses associated with ex-parte or
inter-partes reexaminations.

       

      5.    Dynamic
hereby represents and 'warrants to AIS that: (a) it has all right and authority
to enter into mis Amendment and to grant Company the rights set forth in this
Amendment; (b) it is permitted by applicable
law and regulations to enter into this Amendment.

       

      6.    AIS hereby represents
and warrants to Dynamic that: (a) it has all right and authority to enter into'
this Agreement and to grant Dynamic the rights granted herein; (b) it is permitted by applicable law and
regulations to enter into,
this Agreement.

       

      7.

       

      8.    The rights
and obligations of the Parties under the Prior Agreement which by their
nature would apply to this Amendment shall so apply. By way of example and
without limitation, the obligations
relating, to non
disclosure (prior
Agreement §12.6) and arbitration (prior Agreement
§12.10) apply with equal force to this Amendment.

       

      9.    This
Amendment, including the  Prior Agreement, constitutes the entire agreement
between
the Parties concerning its subject matter and supersedes all prior written
or oral
negotiations
correspondence, understandings and agreements between the Parties respecting
such subject matter. Prior unexecuted drifts of this Amendment may not bo used
to interpret the intentions of the parties or
underlying facts
relating to this Amendment and the fact that certain provisions may have been
added; removed or modified during negotiations shall, have no interpretive
significance. This Amendment shall not be modified or rescinded, except by a
writing signed by both Parties. No provision, of this Amendment shall be deemed
modified by any action or omission or
failure to object to
any action that may be inconsistent with me terms of this Amendment No waiver of
a breach comitted by a Party in one instance shall constitute a waiver or
license to commit or
continue breaches in
other or
like
instances.

       

       

      
        IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of
the date first above written 

         

         

        
          
            	DYNAMIC INTELLIGENCE INC.	 	AIRLINE INTELLIGENCE SYSTEMS INC.
    	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	
                    /s/
      Barry Skinner

                  	 	By:	
                    /s/
      Stephen Johnston

                  	 
	 	(Authorised Signature)	 	 	 (Authorised
      Signature)	 
	 	 	 	 	 	 
	
                    Name:

                  	
                    Barry Skinner

                  	 	
                    Name: 

                  	
                    Stephen
      Johnston

                  	 
	 	(Typed
      or Printed Name)	 	 	
                    (Typed
      or Printed Name)

                  	 
	 	 	 	 	 	 
	
                    Title :

                  	
                    President

                  	 	
                    Title:

                  	
                    President

                  	 

          

        

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          AMENDMENT
2 TO INTELLECTUAL PROPERTY AGREEMENT

           

          This
amendment ("Amendment No,2") is effective as of May 23, 2008 and is by and
between DYNAMIC INTELLIGENCE INC. ("Dynamic"), a Barbados Corporation having an
office at Latirisron House, Lower Collymore Rock Drive, P.O. Box 1132,
Bridgetown, BB11000, Barbados, and AIRLINE INTELLIGENCE SYSTEMS INC., a Delaware
Corporation, ("AIS"), having an office at 3500 Carillon Point, Kirkland, WA
98033, USA. Dynamic and AIS may each be referred to as a "Party" and together as
the "Parties",

           

          The
Parties entered into an Intellectual Property Agreement effective as of December
9, 2005 (the "Original Agreement") and, thereafter, effective as of October 11,
2006, the Parties entered into the October 2006 Amendment to Intellectual
Property Agreement ("Amendment No.l"). The Original Agreement, together with
Amendment No.l, shall be referred to herein as the "Agreement."

           

          In
consideration of the terms, conditions and other covenants and agreements
contained in this Amendment No,2 and for other good and valuable consideration,
the receipt and sufficiency of which are acknowledged, the Parties agree as
follows:

           

          1.    The
definition of "Airline Field" in Section 1.2 of the Agreement shall be deleted
as of the
effective date of this Amendment No.2 and replaced with the following definition
of "Licensed
Field":

           

          "1.2
"Licensed
Field" means, other than expressly excluded below: (i) all of the
following in connection with the airline industry and airline operations: (a)
schedule planning, revenue management, reservations, and irregular operations,
(b) Maintenance Repair Operations, (c) Airline Performance Travel Insurance, and
(d) cargo and freight forwarding; and (ii) the Integrated E-Commerce Travel
Engine Platform, Notwithstanding the foregoing definition, the Licensed Field
excludes military applications, air traffic control applications and airport
management applications. By way of example only, the Licensed Field Includes
schedule planning, revenue management, reservations, and irregular operations In
connection with; airline ticketing, airline route schedules, airline fleet
schedules, airline crew schedules, airline maintenance schedules, airline
passenger schedules, airline and operational relationships between the
foregoing, and asset management systems and financial reporting models that can
be implemented on a computer system to allow for dynamic adjustment of airline
operations based on unforeseen disruptions to those schedules."

           

          The term
"Licensed Field" shall replace the term "Airline Field" throughout the
Agreement, and all references to "Airline Field" in the Agreement shall be
deemed to refer to "Licensed Field."

           

          2.    Section 1,11
of the Agreement shall be amended and restated as of the effective date of
this Amendment No, 2 to read in its entirety as follows:.

           

          "1.11
"Excluded Field" means any field or application not included in the Licensed
Field,"

           

          The term
"Excluded Field" shall replace the term "Non-Airline Field" throughout the
Agreement, and all references to "Non-Airline Field" in the Agreement shall be
deemed to refer to "Excluded Field."

           

          
            
              
              

            

            
              1

              
                

              

            

            
              
              

            

          

           

          3.    The following
section 1.16 shall be added to the Agreement as of the effective date of this
Amendment No. 2,

           

          "1.16
"Integrated B-Commeree
Travel Engine Platform" means technology to the extent it Is utilized in
connection with the purchase and sale of travel products and services. By way of
example only, this includes the aggregation, marketing, sale and distribution of
travel products, travel services and travel content offerings and the
technological facilitation of the transactions between travel industry suppliers
and travelers. These offerings include, by way of example and not by limitation,
airline travel, hotel accommodations, vehicle rentals, cruises, tour and
sightseeing packages, travel insurance, and personalized comprehensive travel
itineraries. By further way of example only, the Integrated E-Commerce Travel
Engine Platform would facilitate inference-based and intelligent travel
searches, provide access to extensive travel information, provide reservations
booking and management, facilitate the bidding, auctioning, purchase and sale of
a variety of travel products, travel services and travel content offerings to
consumers, either made available or created by or on behalf of travel industry
providers, effect the booking of and payment for such transactions, and be fully
integrated with the travel industry supplier operations."

           

          4.

           

           

           

           

           

           

           

           

          
            
              
              

            

            
              2

              
                

              

            

            
              
              

            

          

           

           

           

          5.    Absent mutual
agreement by the Parties to the contrary, ATS shall reimburse Dynamic
for the reasonable out-of-pocket payments incurred by Dynamic In connection with
filing
and maintaining Dynamic Intellectual Property licensed to A3S, including payment
of maintenance
fees for issued patents, patent application filing and annuity fees, prosecution
attorney
fees, and expenses associated with ex-parte or inter-partes
reexaminations.

           

          6.           
Dynamic hereby represents and warrants to AIS that; (a) it has all right
and authority
to enter into this Amendment and to grant Company the rights set forth in
thisAmendment; (b) it is permitted  by applicable law and
regulations to enter in to this Amendment.

           

          7.    AIS hereby represents
and warrants to Dynamic that; (a) It has all right and authority to enter into
this Agreement and to grant Dynamic the rights granted herein;(b) it is
permitted by applicable law and regulations to enter into this Agreement. 

           

          8.

           

          9.    The rights
and obligations of the Parties under the Prior Agreement which by their nature
would apply to this Amendment shall so apply. By way of example and without
limitation, the obligations relating to non-disclosure (Prior Agreement §12.6) and arbitration (Prior
Agreement § 12.10) apply
with equal force to this Amendment.

           

          10.    This
Amendment, including the Prior Agreement, constitutes the entire agreement
between the Parties concerning its subject matter and supersedes all prior
written or oral negotiations, correspondence, understandings and agreements
between the Parties respecting such subject matter. Prior unexecuted drafts of
this Amendment may not be used to interpret the intentions of the parties or
underlying facts relating to this Amendment and the fact that certain provisions
may have been added, removed or modified during negotiations shall have no
interpretive
significance. This Amendment shall not be modified or rescinded, except by a
writing signed by both Parties. No provision of this Amendment shall be deemed
modified by any action or omission or failure to object to any action that may
be inconsistent with the terms of this Amendment. No waiver of a breach
committed by a Party in one instance shall constitute a waiver or license to
commit or continue breaches in other or like instances.

           

          
            
              
              

            

            
              3

              
                

              

            

            
              
              

            

          

           

          IN WITNESS WHEREOF, the Parties hereto have executed this
Amendment as of the da|e first above written

           

           

          
            
              	DYNAMIC
      INTELLIGENCE INC.	 	AIRLINE INTELLIGENCE SYSTEMS INC. 
      	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By: 	
                      /s/
      Barry Skinner

                    	 	By:	
                      /s/Stephen
      C. Johnston

                    	 
	 	(Authorized
      Signature)	 	 	(Authorized
      Signature)	 
	 	 	 	 	 	 
	
                      Name:

                    	Barry
      Skinner	 	Name:	Stephen
      C. Johnston	 
	 	
                      (Typed or Printed
      Name)

                    	 	 	
                      (Typed or Printed Name)

                    	 
	 	 	 	 	 	 
	
                      Title: 

                    	
                      President

                    	 	
                      Title:

                    	
                      President
      & CEO

                    	 
	 	 	 	 	 	 

          

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

          

           

           

          

          SCHEDULE
A

          

          

          

          
            
              	
                       

                    	
                      By:
      

                    	/s/ Stephen
      Johnston	 
	 	 	Stephen
      Johnston	 
	 	 	President
      and Chief Executive Officer	 
	 	 	 	 

            

          

           

          
            
              
              

            

            
              5

              
                

              

            

            
              
              

            

          

          
             

            AMENDMENT
3 TO INTELLECTUAL PROPERTY AGREEMENT

             

            This amendment ("Amendment
No. 3") is effective
as of May 31, 2009 and is by and between Dynamic Intelligence Inc.
("Dynamic"),
a Barbados Corporation
having an office at Lauriston House, Lower Collymore Rock
Drive, P.O. Box 1132, Bridgetown, BB11000, Barbados, and Airline Intelligence
Systems Inc., a Delaware Corporation, ("Ain
having an office at 3500 Carillon Point,
Kirkland, WA 98033, USA. Dynamic and AIS may each be referred to as a
"Pare
and together as the
"Parties".

             

            The Parties entered into an
Intellectual Property Agreement (the "Original Agreement") effective as of December 9, 2005, as
amended by Amendment to Intellectual Property Agreement, dated October 11, 2006
("Amendment
No. 1"), and as further
amended by Amendment 2 to Intellectual Property Agreement, dated May 23, 2008
("Amendment
No. 2"). The Original
Agreement, together with Amendment No. 1 and Amendment No. 2, shall be
referred to herein as the
"Agreement."

             

            In consideration of the terms,
conditions and other covenants and agreements contained in this Amendment No. 3
and for other good and valuable consideration, the receipt and sufficiency of
which are acknowledged, the Parties agree as follows:

             

            1.   
The
definition of "License Field" in Section 1.2 of the Agreement shall be deleted
as of the effective date of this Amendment No. 3 and replaced with the following
definition of "Airline Field":

             

            "1.2
"Airline Field"
means all of the following fields within the airline Industry and airline
operations: (a) schedule planning, revenue management, reservations, and
irregular operations, (b) Maintenance Repair Operations, and (c) Airline
Performance Travel Iiisurance. Notwithstanding the foregoing definition,
"Airline Field" excludes military applications. By way of example, other than
military applications, the Airline Field includes schedule planning, revenue
management, reservations, and irregular operations in connection with: airline
ticketing, airline route schedules, airline fleet schedules, airline crew
schedules, airline maintenance schedules, airline passenger schedules, airline
and operational relationships between the foregoing, and asset management
systems and financial reporting models that can be implemented on a computer
system to allow for dynamic adjustment of airline operations based on unforeseen
disruptions to those schedules."

             

            The term
"Airline Field" shall replace the term "Licensed Field" throughout the
Agreement, and all references to "Licensed Field" in the Agreement shall be
deemed to refer to "Airline Field."

             

            2.    
Section 1.11 of the Agreement shall be amended and restated as of the effective
date of this Amendment No. 3 to read in its entirety as follows:.

             

            "Non-Airline
Field" means any fields) not included in the Airline Field. By way of example,
the Non-Airline Field includes any field unrelated to airline resource
scheduling and planning. By further way of example only, the Non-Airline Field
includes, but is not limited to, resource scheduling and planning in connection
with: the military; transportation of goods by car, ship, rail or truck;
warehousing; supply-chain management; car rental fleets; electricity; and
natural gas, oil and telecommunication networks.

             

            
              
                
                

              

              
                1

                
                  

                

              

              
                
                

              

            

             

            The term
"Non-Airline Field" shall replace the term "Excluded Field" throughout the
Agreement, and all references to "Excluded Field" in the Agreement shall be
deemed to refer to "Non-Airline Field."

             

            3.     Section
1.16 shall be deleted in its entirety from the Agreement as of the effective
date of this Amendment No. 3.

             

            4.

             

            5.   
Absent
mutual agreement by the Parties to the contrary, AIS shall reimburse Dynamic for
the reasonable out-of-pocket payments incurred by Dynamic in connection with
filing and maintaining Dynamic Intellectual Property (as defined in the Original
Agreement) licensed to AIS, including payment of maintenance fees for Issued
patents, patent application filing and annuity fees, prosecution-attorney fees,
and expenses associated with ex-parte or inter­partes
reexaminations.

             

            6.    
Dynamic
hereby represents and warrants to AIS that: (a) it has all right and authority
to enter into this Amendment No. 3 and to grant Company the rights set forth in
this Amendment No. 3 and (b) it is permitted by applicable law and regulations
to enter into this Amendment No. 3.

             

            7.   
AIS hereby represents and warrants to Dynamic that: (a) it has all right and
authority to enter into this Agreement and to grant Dynamic the rights granted
herein; (b) it is permitted by applicable law and regulations to enter into this
Agreement.

             

            8.

             

            9.     The
rights and obligations of the Parties under the Original Agreement which by
their
nature would apply to this Amendment No. 3 shall so apply. By way
of example and without
limitation, the obligations relating to non-disclosure (Original Agreement
§12.6) and arbitration (Original Agreement §12.10) apply with equal force to
this Amendment No. 3.

             

            
              
                
                

              

              
                2

                
                  

                

              

              
                
                

              

            

             

            10. 
This Amendment No. 3, and the agreements referenced herein, constitutes the
entire agreement between the Parties concerning its subject matter and
supersedes all prior written or oral negotiations, correspondence,
understandings and agreements between the Parties respecting such subject matter.
Prior unexecuted drafts of this Amendment No. 3 may not be used to
interpret the intentions of the parties or underlying facts relating to this
Amendment No, 3 and the fact that certain provisions may have been added,
removed or modified during negotiations shall have no interpretive significance.
This Amendment No 3 shall not be modified or rescinded, except by
a writing signed by both Parties. No provision of this Amendment No. 3
shall be deemed modified by any action or omission or failure to object to any
action that may be inconsistent with the terms of this Amendment No. 3. No
waiver of a breach committed by a Party in one instance shall constitute a
waiver or license to commit or continue breaches in other or like
instances.

             

            
              
                
                

              

              
                3

                
                  

                

              

              
                
                

              

            

             

            IN
WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 3 to be duly
executed as of the day and year first above written.

             

            AIRLINE
INTELLIGENCE SYSTEMS INC.

             

             

            By:/s/  Stephen
Johnston             
                 

            Name:                                                         
        

            Title:                            
                                      

            
               

               

               

              DYNAMIC
INTELLIGENCE INC.

               

               

              By:  /s/ Barry
skinner                                      

              Name: Barry
Skinner                                       

              Title:   President                                              

            

                                 

             

            
              
                
                

              

              
                4

                
                  

                

              

              
                
                

              

            

             

            EXHIBIT
A

             

             

             

             

             

             

             

             

             

             

             

             

             

             

             

            
              
                
                

              

              
                5

                
                  

                

              

              
                
                

              

            

             

            EXHIBIT
B

             

             

             

             

             

             

             

             

             

             

             

             

            
              
                
                

              

              
                6

                
                  

                

              

              
                
                

              

            

             

            EXHIBIT
C

            
 

             

             

             

             

             

             

             

             

             

             

             

             

             

             7

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