Document:

Exhibit

1

	
	
	ATTACHMENT A to Software License and Hosting Services Agreement (MSA)/Purchase Order

	

Statement of Work Number / Project Title:  SOW #4A *** Subscription Services
MSA Number:  (Optional)

NO WORK ON THIS PROJECT IS AUTHORIZED OR SHALL COMMENCE UNTIL A VALID PURCHASE ORDER IS DULY ISSUED BY CISCO

		
	1.
	GENERAL.

This Statement of Work (“SOW”) defines services (“Services”) to be performed for and work product to be delivered as applicable to Cisco Systems, Inc. (“Cisco”) by Covisint Corporation (“Covisint”, “Licensor” or “Supplier”) under the Software License and Hosting Services Agreement defined below. 
This SOW is governed by, incorporated into, and made part of the terms and conditions of the Software License and Hosting Services Agreement, having an effective date of November 19, 2013 (“MSA” or “Agreement”), as amended, between Covisint and Cisco.  In the event of any conflict between the SOW and the MSA and/or Purchase Order, the SOW will prevail, solely to the extent of the inconsistency unless otherwise stated.  
The terms of this SOW are limited to the scope of this SOW and shall not be applicable to any other SOWs which may be executed and attached to the MSA and/or Purchase Order.
Any references in this SOW to specific sections in the Agreement are solely for the convenience of the parties and are not intended to modify the Agreement.  If the parties wish to modify any provisions of the Agreement, such modifications must be clearly stated, specifying the sections to be modified and how they are to be modified.  Any such modifications shall apply only with respect to this SOW, and shall not affect any other existing or future SOWs unless otherwise indicated.
This SOW is comprised of the following parts:
SOW Sections 1 - 14
Appendix A: Definitions
Appendix B: Cisco standard document templates and Sample Reports
Appendix C: CSPO Information Classification Policy
Appendix D: Rate card for change orders
Appendix E: Fixed Price Breakdown
Appendix F: Long-Term SXP Conceptual Architecture
Appendix G: Form of Change Request
Appendix H:  Form of Quarterly Release Chart

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

2

		
	2.
	SCOPE OF SERVICES.

a)   Executive Summary
***. 
		
	b)
	Supplier shall provide Services under the following phases:

The scope of this SOW will be provided on a quarterly basis in advance, as set forth below.  
c)   Project Organization
The project organization is assigned after this SOW is signed by the parties.  There will be a Supplier Project Manager and a Supplier Core Team.  This team will work with the Cisco Project Manager and Cisco Core Team. 

		
	3.
	SERVICES AND WORK PRODUCT. 

		
	a)
	Services Scope.  

		
	1)
	***  

		
	2)
	*** Subscription Services.  

		
	(a)
	Covisint Responsibilities.  Supplier shall be solely responsible for the delivery of the following Services:

		
	(i)
	In conjunction with Cisco, integrate Cisco’s *** and/or APIs to Covisint Platform Services.  ***

		
	(ii)
	***

		
	(b)
	Quarterly Release Planning.  Each of the parties’ Project Manager and Core Team as referenced in Section 2(c) above will meet quarterly 30 days prior to the quarterly anniversary (“Quarter”) of the Effective Date to develop and document the work activities and results (“Release”) for the release(s) of the next ninety days after such quarterly anniversary (“Quarterly Release Scope”), such documentation (“Quarterly Release Chart”) to be concluded no later than the beginning of such next Quarter and to become a part of this SOW at that time.  The initial Quarterly Release Chart is set forth below; subsequent Quarterly Release Charts shall be in substantially the form set forth in Appendix H.  Each Quarterly Release Chart shall indicate the tasks for the upcoming quarter, as well as measurable criteria for each task to determine whether Supplier has met the scope of the deliverable, or the SLAs in Agreement, as relevant.  The due date for all elements of a Quarterly Release Scope shall be the last day of that Quarter.  

	
			
	Release deliverables
	Work Product (Y/N)
	 Completion  criteria

	As set forth in 2(a)(i)-(vi) above, 
	 
	TBD as agreed in writing by the parties during the first 30 days after the Effective Date

	 
	 
	 

		
	(c)
	Cisco Responsibilities.

***

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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b)Specifications for Work Product.  Work Product will be identified by the parties for each specific Quarterly Release.
The Work Product shall meet the following technical, functional and other Specifications:
All Work Product prepared by Supplier will be produced using Cisco standard desktop, Oracle Development, and Training tools (i.e., MS Word, MS Excel, MS PowerPoint, MS Visio, Standard Survey, and Tools, etc.) and adhere to the requirements and specifications of the Cisco standard document templates (Appendix B) unless otherwise approved by Cisco.
All Work Product prepared by Supplier will be subject to Cisco’s acceptance in accordance with Section 4 of this SOW in order to determine whether they comply in all material respects with the specifications agreed upon by the parties in this SOW.
Supplier shall mark all Work Products in accordance with CSPO Information Classification Policy. A copy of the current policy is located at http://wwwin.cisco.com/infosec/policies/classification.shtml#marking (or any successor sites) as it may be updated from time to time at Cisco’s sole discretion, and Supplier must comply with any updates to the policy during the term of this SOW.  
c)Support and Training.  Supplier shall provide the following support and training for the  Services and Work Products as applicable 
		
	•
	Covisint will provide support related to Covisint software products, including any additional software or functionality developed under Section 3(a)(2)(a) which is Covisint IP, within the SXP Platform.

d)Written Reports. Supplier shall provide the following written reports:  None required.
	
						
	Frequency
	Report Title
	Type
	Content Overview of Report Content
Instruction:  Overview Of Delivery Status: Updated MS Project Plan Gantt Chart Showing Progress, Report On Any Deliveries Made Week Before, Issues, Escalations, Planning For Next Week’s Activities.
	Format
	To Be Delivered To

	Not Applicable 
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable

Samples of reports can be found in Appendix B
		
	4.
	SERVICE LEVEL AGREEMENT AND TESTING PROCEDURES - With respect to Quarterly Release Chart deliverables which will be measured via SLAs, the Service Level Agreement and Testing Procedures are defined in the Agreement, therefore this Section 4 does not apply to this SOW.

a)   Service Level Agreement (SLA).  
The table below sets service levels requirements (“Service Levels”) that shall be prescribed to measure Supplier’s performance of the Ongoing                   Services under this SOW.  Supplier agrees that  Services shall meet or exceed each of the applicable Service Levels set out below, subject to the limitations and in accordance with the provisions set out in this SOW and the Agreement.
	
					
	Area
	Definition
	Service Level 
	Report by
	Format

	     
	     
	     
	     
	     

	     
	     
	     
	     
	     

	     
	     
	     
	     
	     

	     
	     
	     
	     
	     

	     
	     
	     
	     
	     

	     
	     
	     
	     
	     

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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During the Transition-In Phase, both Parties shall validate the Service Level baselines.
SLA’s shall be measured, calculated and reported by the 10th of each month during the SOW Term.  The Parties shall mutually agree on the criteria and data source for the report. 
Supplier shall be responsible for promptly investigating and minimizing impact of all failures to meet the SLA by:
		
	i)
	Initiating problem investigations to identify root causes of failures related to not achieving the SLA;  

		
	ii)
	Immediately reporting problems related to the Services that reasonably could be expected to have a material adverse effect on Cisco 's operations to Cisco and 

		
	iii)
	Making written recommendations to Cisco for improvement in procedures related to the Services.

Where performance fails to meet an SLA during the Ongoing Maintenance Phase, a root cause analysis will be conducted by Supplier to determine the cause of the missed Service Level, and corrective actions will be identified and implemented.  Where the root cause analysis identifies corrective action related to scope outside of Supplier’s scope within SOW, Cisco shall ensure appropriate corrective action is taken by the appropriate Parties.  
If Supplier performance fails to meet an SLA for two (2) consecutive months due to factors within Supplier’s control, at the discretion of the Cisco Production Support Manager, the matter may be escalated to the Steering Committee for review.  When corrective action is accepted by the Steering Committee, Supplier shall be considered to have met the SLA.
***
If the Ongoing                   Services provided pursuant to this SOW are changed, modified or enhanced (whether by Change Control Procedure outlined in the Agreement or through the provision of new services), the Parties shall review the Service Levels then in effect and shall in good faith determine whether such Service Levels should be adjusted and whether additional Service Levels should be implemented.
Quarterly Performance Evaluation:  On a quarterly basis, Supplier shall provide Cisco with a report  that details Supplier’s performance with respect to each measure set forth in the SLA during the preceding quarter (the “Quarterly Business Review”).
e.    Quality Assurance (QA) Testing and Acceptance.  
The Work Product shall pass the following tests: 
                 
  
In the event that the Work Product does not conform to the applicable specifications of the SOW (such non-conformance will be referred to as "Deficiencies"), Cisco shall reject the Work Product and provide written notice to Supplier describing the Deficiencies in sufficient detail to enable Supplier to correct such Deficiencies.  Supplier shall address such Deficiencies in a timely manner.  Supplier shall compile an action plan to correct any Deficiencies and the process for acceptance detailed herein shall be repeated until such time as all Deficiencies have been resolved and the Deliverable is accepted by Cisco.  Cost of any work effort undertaken by Supplier to rectify Deficiencies in the tasks completed by Supplier will be borne by Supplier.
If Cisco does not provide written acceptance or rejection within ten (10) working days, then Supplier will follow a mutually agreed upon escalation process (“Escalation Process”). This Escalation Process will be developed in the first 4 weeks after work on this SOW begins.  
Cisco and Supplier may mutually agree to extend the period of time allotted for any review, correction or change under this section. Any such extension of time will extend the schedule for subsequent Deliverables by a corresponding amount, if the subsequent Deliverable is dependent on completion of the former Deliverable.
f.    Additional Completion Criteria.
Any additional completion criteria regarding meeting the scope of the deliverables will be set forth in a Quarterly Release Chart.     

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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5.     RESOURCES TO BE PROVIDED BY SUPPLIER.
Supplier shall provide the following to complete the Services:
		
	(a)
	SUPPLIER’S PRE-EXISTING PROPERTY.

Supplier will use the following Pre-existing Property of Supplier to complete the Services.  
Covisint Platform Services
(b) Supplier Resources
All Supplier’s personnel requiring access to Cisco’s premises or network must go through the Contingent Worker Onboarding (CWO) process which includes background screening by a third party agency.  Each individual must achieve a rating acceptable to Cisco before they may participate in this SOW engagement.
Only those personnel directly responsible for management of the contract, or whose professional/technical skills are essential for successful implementation of the project or statement of work should be designated as Key Personnel.  Key Personnel are subject to approval of Cisco’s management prior to assignment.  Cisco may require removal of designated Key Personnel for no reason or any reason, and Supplier shall promptly comply with Cisco’s direction.    For avoidance of doubt, Cisco may only require removal of non-key personnel from the project for good cause, including by way of illustration and not of limitation, failure to comply with Cisco’s “Job Practice and Behavior Guide for Vendors, Contractors, Independent Contractors, Suppliers, and Access-Only” as communicated to all Supplier resources in the “Cisco Confidential Information Agreement:  Individuals (Vendors, Contractors, Independent Contractors, Suppliers, and Partners)” they sign as part of the Cisco Non-Employee Access package.
	
				
	Key Personnel

	Name
	Role
	Participation
	Primary Location

	Tony Kramer
	Program Director
	 
	Southfield MI

	 
	 
	 
	 

	 
	Supplier Day-to-Day On-Site Support Team Manager:  This role is not applicable for this SOW.
	 
	 

Supplier’s planned headcount for this work is described in Appendix E (Fixed Cost Breakdown) attached to this SOW, however as this is a Managed Service, the non key resources to be used under this SOW shall be at the discretion of Supplier, as long as Supplier continues to meet the requirements under sections 3, 4, 9 and 13 of this SOW.  Supplier shall not increase the agreed monthly cost to charge for resources in excess of the planned resources outlined in Appendix E, unless any such additional resources are required as a result of an approved Change Order as per Section 12, or volume change as outlined in 9d.
Cisco will utilize Supplier Day-to-Day On-Site Support Team Manager as a single point of contact for all communications. Cisco will refrain from contacting or communicating with Supplier staff or team members without engaging the appropriate Supplier Day-to-Day On-Site Support Team Manager prior to doing so.
Supplier Day-to-Day On-Site Support Team Manager is responsible for the following resource management tasks:
		
	i)
	Representing all of Supplier’s employees and areas of delivery provided by Supplier to Cisco as defined in this SOW

		
	ii)
	Professional and satisfactory completion of the stated Service Levels and work products

		
	iii)
	Timely and effective selection of appropriately skilled Suppliers to meet the requirements of the project 

		
	iv)
	Being the conduit and responsible party for the delivery of information from Supplier concerning service, requirements and plans

		
	v)
	Scheduling meetings as needed with Cisco Project Manager to review Supplier performance

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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(c)  Third Party Technology.  
Supplier shall provide and pay for the following third party technologies to complete the Services.
N/A

RESOURCES TO BE PROVIDED BY CISCO.
Cisco shall provide the following:
(a) CISCO PRE-EXISTING PROPERTY AND ASSETS.        
All property and assets, whether tangible or intangible, provided by Cisco to Supplier shall be Cisco Pre-existing Property. Cisco Pre-Existing Property shall include, but not be limited to the following:
	
				
	Item
	Yes / No
	Location
	#

	A Security Badge (Building Access)
	 
	 
	 

	Furnished workspace(s) (cube) in a Cisco establishment
	 
	 
	 

	Laptop PC (Standard Cisco Laptop Image)
	 
	 
	 

	Intranet (CEC) and Internet Network Access
	 
	 
	 

	E-Mail account(s)
	 
	 
	 

	IP Telephone with voice-mail
	 
	 
	 

	Remote Access / VPN connectivity (Soft token) (DES Card)
	 
	 
	 

	Access to Cisco On-Site facilities (Break rooms, Restaurants, etc.)
	 
	 
	 

	Mobile telephone
	 
	 
	 

	Pager
	 
	 
	 

	IP Communicator
	 
	 
	 

	Access to Conference Call facilities (Meeting place / Meet me)
	 
	 
	 

	Fax and photocopying facilities
	 
	 
	 

	Additional Items (Please Specify Here)
	 
	 
	 

Cisco pre-existing property and assets may include software and other licensed intellectual property.  Supplier shall comply with all license terms and other terms of use of which it has knowledge which may apply to such property and assets.  
All Cisco pre-existing property and assets shall be returned to Cisco in good condition, less ordinary wear and tear, upon completion of the SOW.  Where any of the property or assets is returned in sub-standard condition or not returned within 5 working days of the SOW’s conclusion, Supplier shall be liable to pay the costs of replacement or repair to the property or assets.  Cisco reserves the right to request the return of loaned property and assets.  
Cisco property and assets loaned to Supplier shall be used, specifically and exclusively for the performance of the Work specified in this SOW.  Failure to comply with this provision shall be a material breach of this SOW entitling Cisco to terminate, without limiting other remedies available to it under applicable law or the Agreement.  
b)  Cisco Resources.  
Cisco shall provide the following resources and personnel to complete the Services during the term of this SOW.  

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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	Cisco Resources

	Team Member
	Role
	Description
	Participation
	Primary Location

	     
	     
	     
	     
	     

	     
	     
	     
	     
	     

	     
	     
	     
	     
	     

c)  Licensed Programs.  
Cisco grants a limited license per Article 7 of the Agreement for the following Licensed Programs for the Designated Sites:
	
			
	Proposed Licenses

	Name of Licensed Program
	Number of Licenses
	Designated Site

	     
	     
	     

	     
	     
	     

	     
	     
	     

	     
	     
	     

7.    CONFIDENTIAL INFORMATION
The rules related to Confidential Information and how it may be used is covered by the Agreement / Non Disclosure Agreement signed by Cisco and Supplier dated September 6, 2013. To locate the supplier NDA access NDA Central: http://wwwin.cisco.com/legal/nda/index.shtml
a)   Description of Supplier’s confidential Information: 
Please call out anything specific to this engagement not covered in the Agreement/NDA or enter None.
b)   Description of Cisco Confidential Information shall include, but not be limited to: 
		
	i)
	All information accessed by Supplier utilizing the Cisco Intranet (CEC).

		
	ii)
	All communications received (including any attachments) utilizing a Cisco provided e-mail account.

		
	iii)
	All documents accessed by Supplier associated with the Services and work product as specified in this SOW. 

		
	iv)
	All documentation created by Supplier as part of the Services and work product specified in this SOW.

		
	v)
	All documentation created by other Suppliers or Cisco Employees accessed by Supplier.

8.    PROJECT MANAGERS
	
		
	CISCO:
*** 
	SUPPLIER:
Tony Kramer

	Cisco Systems, Inc.
	Covisint Corporation

	170 West Tasman Drive 
	26533 Evergreen Road, Suite 500

	San Jose, CA  95134 
	Southfield, MI 48076

	Phone:  ***
	Phone: ***

	 
	Fax:  (000) 00000000

	Email: ***
	Email:  tkramer@covisint.com 

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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9.    PAYMENT.                
		
	a)
	Maximum Payment Amount

Supplier will perform the Services of this SOW for the Term as defined in Section 11 on a firm fixed price basis (either fixed price or time and materials not to exceed a defined amount). Supplier may not increase the firm fixed price due to an incorrect estimate of work effort detailed in Appendix E.
Annual changes to Supplier rate card shall not impact this fixed price contract. 
b)  Payment Method
Milestone Payment Schedule. Supplier shall deliver the Releases, Work Product and Services and Cisco shall pay Supplier according to the following payment schedule and as defined in the Agreement:
	
			
	Service
	Payment Terms
	Amount Payable

	*** and future releases Subscription Services
	***
	***

	     
	 
	     

	Expenses (total from section 9c):
	 
	***

	Total (to include all Payments for services and expenses)
	 
	***

The total value of this SOW is *** (“Total”); Cisco will issue quarterly POs in connection with the Total subject to Section 9(d) below, and the Agreement.  Cisco’s maximum funding liability under this SOW shall not exceed the amounts indicated in this subsection.
(c)  Expenses.  Cisco shall reimburse reasonable, actual and necessary expenses, provided that the following conditions are met:  (i) all expenses must be approved by the Cisco Project Manager in advance of incurring such expense and (ii) a request for reimbursement must be accompanied by such documentation as Cisco may request establishing the type, date, amount, payment and purpose for such expense and that such expenses are incurred in accordance with Cisco’s Non-employee Travel Policy (a copy of the current policy is located at http://wwwin.cisco.com/FinAdm/gpo/gsoglobal/gtme/travel/policies.shtml (or any successor sites) as it may be updated from time to time at Cisco’s sole discretion, and Supplier must comply with any updates to the policy during the term of this SOW). Cisco's maximum liability for all expenses incurred during the execution of this SOW shall not exceed ***.   
  
(d) Quarterly Issuance of POs.  Supplier understands that milestones or deliverables may be funded on a periodic basis by Cisco.  Supplier acknowledges that any work performed prior to receipt of a Purchase Order from Cisco for each milestone or deliverable will be Supplier’s own risk.  Purchase Orders will be issued quarterly upon receipt of a Quarterly Release Chart for the upcoming Quarter that has been finalized and signed off by the parties.

e)  Scope Management 
If Cisco introduces a new technology that prevents Supplier from delivering on this SOW, Supplier may bring a proposal to the Steering Committee for resolution.   Resolution may result in a modification to this SOW.  
In the event that Cisco adds new applications, Cisco and Supplier will follow the Change Request Process as per Section 12.  Any agreed change will be priced according to Cisco approved rate cards.

10.    PLACE OF PERFORMANCE.
The Work shall be performed by Supplier at Covisint’s facility at: 26533 Evergreen Road, Suite 500, Southfield, MI 48075.      

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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11.       TERM OF STATEMENT OF WORK.
This SOW shall remain in effect from October 1, 2015 (“Effective Date”) until April 30, 2018 (“Term”) unless terminated as follows.  The termination provisions for this SOW are defined in Section 15.3 of the Agreement titled Termination for Cause.  For the avoidance of doubt, failure to meet a completion criteria in any material respects under a Quarterly Release Chart will be considered “a default or failure to perform any of its obligations or agreements hereunder in any material respect” under Section 15.3.3 of the Agreement.  Notwithstanding anything to the contrary in the Agreement, Section 15.2 of the Agreement does not apply to this SOW.

12.       CHANGE REQUEST PROCESS
It may become necessary to amend this Statement of Work from time to time for reasons including, but not limited to, the following:
		
	a)
	Discretionary changes (as agreed by Cisco) in the scope of work such as addition or decommissioning of In Scope named applications

		
	b)
	Requested changes to the work hours of Supplier personnel

		
	c)
	Non-availability of products, resources or services which are beyond Supplier’s control

		
	d)
	Impediments not previously identified

		
	e)
	Lack of access to personnel or facilities necessary to complete project

In the event that it is necessary to change this Statement of Work, the following process will be followed:
A Change Request (CR) in the form attached at Appendix G will be the vehicle for communicating change. The CR must describe the change, reasons for the change, and the effect the change will have on the project, which may include scheduling changes, pricing, etc. A CR may be initiated by either Cisco or Supplier.
The designated Project Manager of the requesting party will review the proposed change and determine whether to submit the request to the other party.
Both Project Managers will review the proposed change and approve it or reject it. If further investigation on the part of Supplier is required in order to determine the scope of the change, any charges for that investigation will be outlined. Both Project Managers will sign the CR, indicating the acceptance of both parties to the changes, which may affect pricing, schedules, and contractual commitments.
Upon acceptance and execution of the Change Request by both Project Managers, the scope of work and costs will be modified appropriately, and the changes will be incorporated into the project.
13.       SPECIAL TERMS -.  The following terms apply to this SOW.
a.  Ownership of Work Product under this SOW shall be governed by Section 3 of the Agreement. “Work Product” shall mean any deliverables, documentation or technology created by or resulting from the activities of Licensor or its subcontractors under this SOW including, without limitation, as documented in Section 3. a) 2) (b).  Work Product, if any, that is not explicitly owned by Supplier or Cisco under Section 3 of the Agreement shall be owned by Cisco.  Work Product owned by Supplier is included in the definition of “Software” and/or “Hosting Services” under the Agreement. The parties shall determine Work Product of each Release during the Quarterly Release Planning reviews. 
b. In addition to the Project Organization requirements set forth in Appendix A, the parties agree that Supplier Business Reviews as contemplated in Section 2.3 of the Agreement shall be held Quarterly to review progress under this SOW, to produce the Quarterly Release Chart as set forth in Section 3.A.3 and to document any other changes that have not been previously documented in one or more CRs.  The parties hereby waive the notice requirement of Section 2.3.

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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c.  BOTH PARTIES ACKNOWLEDGE TIME IS OF THE ESSENCE IN PERFORMANCE OF THE WORK ON OR BEFORE THE RELEASES SPECIFIED IN EACH QUARTERLY RELEASE CHART.
d.  *** 
14.     SPECIAL ASSUMPTIONS AND/OR CONDITIONS -  
The pricing and delivery schedule as outlined in this SOW have the following dependencies and assumptions.  Should there be a material change in assumptions, Supplier leadership team and the Cisco IT leadership team will assess the variance and determine if a Change Order is required.  
IN WITNESS WHEREOF, the parties hereto have caused this SOW to be executed by their duly Authorized Representatives.
	
		
	CISCO SYSTEMS, INC.             
Name:Name:Pankaj Srivastava
Title:    Vice President
Date:   November 6, 2015
Signature: /s/ Pankaj Srivastava
	Covisint Corporation
Name: Joel Kremke 
Title:    Senior Vice President
Date:   November 2, 2015
Signature: /s/ Joel Kremke

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

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Appendix A: Definitions 

All acronyms, especially Cisco specific acronyms for application names, processes, project, programs, teams, etc. should be included in this appendix.  Even acronyms commonly used in the relevant industry should be included to avoid any misunderstanding. 

For the purposes of this SOW, the following definitions are added to the Agreement.  All capitalized terms not otherwise defined herein shall have the meaning set forth in the Agreement.
"ACI" means application centric infrastructure.
"Cisco Guides" means a document that describes how to integrate, deliver or operate a system.
“Covisint Platform Services” means the Licensor Provided Hosting Services as follows: Covisint Portal, Covisint Cloud Identity Services, Covisint Cloud Data Exchange Service and Covisint AppCloud Services.
"Covisint System Integration, Delivery and Operation Guides" means documents that describe how to integrate, deliver or operate a system.
"ESB" means an enterprise service bus.
"Intercloud" means a data center hosted by Cisco.
"NFV" means network functions virtualization.
"SDN" means software defined networking.
"SDP" means Cisco’s “Service Delivery Platform” software.
"Service Edge" means Cisco software for dynamically establishing a virtual private network connection between computer systems.
“SXP Application Marketplace” or “Marketplace” means the Cisco software for ordering and purchasing enterprise application services.  
Project Organization
		
	•
	Cisco Project Manager - Owner of this SOW and responsible for project delivery, developing standards for measuring project status/progress, developing standards for risk identification/reporting, developing standards for issue identification/resolution, developing an escalation/resolution process, project status and coordination of Cisco resources in support of this project.  This person has decision making authority regarding project decisions, work product definition and acceptance. 

		
	•
	Steering Committee - Cisco shall leverage a Steering Committee (“Steering Committee”), made up of a number of key executives from Cisco that will meet monthly to: (i) review and analyze the monthly project performance reports for the preceding month and the overall performance of the parties in connection with this project; (ii) review progress on the resolution of issues; (iii) provide a strategic outlook for Cisco’s requirements; and (iv) attempt to resolve, or designate individuals to attempt to resolve, any disputes or disagreements in connection with this project.  Supplier will not be part of the Steering Committee.  The Cisco Project Manager shall lead the Steering Committee meetings and provide consolidated content.  

		
	•
	Executive Sponsor - The Executive Sponsor is a Steering Committee member and a key stakeholder.  This person provides communication to participating functions and individuals regarding project priorities, objectives, support requirements and authorizes the needed resources. The Executive Sponsor empowers the Cisco Project Manager and serves as an escalation point.  

		
	•
	Core Team - Cisco and Supplier shall jointly maintain a core team (“Core Team”), made up of resources from Cisco and Supplier. The Cisco Project Manager, Executive Sponsor and Steering Committee will provide the Core team with schedule, scope, decisions, resolution of issues and coordination.

		
	•
	Supplier Project Manager - Supplier shall provide this resource to oversee and coordinate all Supplier resources for the successful completion of the Deliverables.  This person is considered Key Personnel.  This person shall ensure Supplier abides by the standards and processes established by the Cisco Project Manager.\

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

12

Appendix B: Cisco Standard Document Templates and Sample Reports

Attach any document templates you want Supplier to use e.g. PowerPoint templates, Word templates for weekly updates, etc. Attach any report templates you want Supplier to use e.g. Word templates for weekly update etc.

Appendix C: CSPO Information Classification Policy

The current CSPO Information Classification Policy is located at http://wwwin.cisco.com/infosec/policies/classification.shtml (or any successor sites) as it may be updated from time to time at Cisco’s sole discretion, and Supplier must comply with any updates to the policy during the term of this SOW.

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

13

Appendix D : Rate Card for Change Orders
	
			
	Role
	Level
	Daily rate US$

	Project Manager
	5 years + experience
	     

	Analyst
	3 years + experience
	     

	     
	     
	     

	     
	     
	     

	     
	     
	     

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

14

Appendix E: Fixed Price Breakdown

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

15

Appendix F: Long-Term SXP Conceptual Architecture

*** 

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.

16

Appendix H: Form of Quarterly Release Chart

In reference to the section concerning the Quarterly Release Chart of the Statement of Work (SOW) referenced as SOW No. 4A, *** Subscription Services , with an Effective Date of October 1, 2015, to the Software License and Hosting Services Agreement with an Effective Date of November 19, 2013 between Cisco Systems (“Cisco”) and Covisint Corporation, (“Supplier”), both parties hereby certify, by the signature of an authorized representative, that this Quarterly Release Chart will amend and be fully incorporated into the SOW. 
1.    Quarterly Release Chart: [ADD RELEASE NAME AND NUMBER and date of Quarter]
	
			
	Release deliverables (scope description)
	Work Product (Y/N)
	  Completion Criteria

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

2.    Work Product.  The following items are considered Work Product as part of this Release:
		
	•
	...

		
	•
	...

		
	•
	...

3.   Additional terms:

IN WITNESS WHEREOF, the duly authorized representatives of the parties have caused this Quarterly Milestone Chart to be fully executed.

CISCO SYSTEMS                    COVISINT CORPORATION            
By:                             By:                         
Name:     ___________                    Name: _                    
Title:                             Title:                         
Date:                             Date:                         

GPS Managed Services SOW Template_v1.0                                                                                                                   CISCO CONFIDENTIAL
UPDATED TEMPLATE FOR Q3FY11
CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”.  A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.Exhibit 10.1

Restricted Share Unit Agreement

This Restricted Share Unit Agreement (this "Agreement") is made and entered into as of                      (the "Grant Date") by and between GSE Systems, Inc., a Delaware corporation, (the "Company") and                       (the "Grantee").

WHEREAS, the Company has adopted the GSE Systems, Inc. 1995 Long-Term Incentive Plan, as amended and restated effective March 6, 2014 (the "Plan"), pursuant to which Restricted Share Units may be granted;

WHEREAS, as of the date hereof, the Company and the Grantee have entered into a Confidentiality, Non-Competition and Proprietary Rights Agreement (the "Employment Agreement"); and

WHEREAS, the Company has determined that it is in the best interests of the Company and its stockholders to grant the award of Restricted Share Units provided for herein.

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

1.    Grant of Performance Restricted Share Units. Pursuant to Section 6 of the Plan, the Company hereby grants to the Grantee an Award for a target number of Restricted Share Units.  Each Restricted Share Unit ("RSU") represents the right to receive one share of Common Stock (as defined in Exhibit 1), subject to the terms and conditions set forth in this Agreement and the Plan. The number of RSUs that actually vest for the Performance Period will be determined by the level of achievement of the Performance Goals in accordance with Exhibit 1 attached hereto. Capitalized terms that are used but not defined herein have the meanings ascribed to them in the Plan.

2.    Performance Period. For purposes of this Agreement, the term "Performance Period" shall be the period commencing on the date the hereof and ending on                      .

3.    Performance Goals.

3.1        The number of RSUs vested will be determined based on the achievement of the Performance Goal in accordance with Exhibit 1. All determinations of whether the Performance Goal has been achieved, the number of RSUs vested, and all other matters related to this Section 3 shall be made by the Board of Directors, in their sole discretion.

3.2        Promptly following achievement of the Performance Goal, the Board of Directors will review and certify in writing (a) when the Performance Goal has been achieved, and (b) the number of RSUs that vest, subject to compliance with the requirements of Section 4. Such certification shall be final, conclusive and binding on the Grantee, and on all other persons, to the maximum extent permitted by law.

4.    Vesting of RSUs. The RSUs are subject to forfeiture until they vest. Except as otherwise provided herein, the RSUs will vest and become nonforfeitable as of the day the Performance Goal is satisfied as certified by the Board of Directors in accordance with Section 3.2.  The number of RSUs that vest and become payable under this Agreement shall be determined by the Board of Directors based on the achievement of the Performance Goal set forth in Exhibit 1.  Notwithstanding anything herein to the contrary, any unvested RSUs will expire on                      .

5.    Termination of Employment.  Except as otherwise expressly provided in this Agreement, if the Grantee's employment with the Company terminates for any reason at any time before all of his or her RSUs have vested, the Grantee's unvested RSUs shall be automatically forfeited upon such termination of employment, and neither the Company nor any Affiliate shall have any further obligations to the Grantee under this Agreement.

6.    Effect of a Change in Control. If there is a Change in Control (as defined below), this Section 6 shall determine the vesting of any unvested RSUs.

(a)      If a Change of Control occurs prior to                     , and if the VWAP of the Common Stock is greater than or equal to $                     for the ten trading day period ending on the trading day immediately prior to the effective date of the Change in Control, all of the unvested RSUs shall vest on the effective date of the Change in Control.

(b)      For purposes of this Agreement, a "Change of Control" of the Company shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied:

	
(i)

	
The stockholders of the Company approve: (x) an agreement for the sale or disposition of all or substantially all the Company's assets; or (y) a merger, consolidation, or reorganization of the Company with or involving any other corporation, other than a merger, consolidation, or reorganization that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least a majority of the combined voting power of the voting securities of the Company (or such surviving entity) outstanding immediately after such merger, consolidation, or reorganization.

7.    Payment of RSUs. Payment in respect of the RSUs vested for the Performance Period shall be made in shares of Common Stock and shall be issued to the Grantee as soon as practicable following the vesting date and, in any event, within 30 days following the vesting date.  The Company shall (a) issue and deliver to the Grantee the number of shares of Common Stock equal to the number of vested RSUs, and (b) enter the Grantee's name on the books of the Company as the stockholder of record with respect to the shares of Common Stock delivered to the Grantee.

8.    Transferability. Subject to any exceptions set forth in this Agreement or the Plan, the RSUs or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee.

9.    Rights as Stockholder; Dividend Equivalents.

9.1        The Grantee shall not have any rights of a stockholder with respect to the shares of Common Stock underlying the RSUs, including, but not limited to, voting rights and the right to receive or accrue dividends or dividend equivalents.

9.2        Upon and following the vesting of the RSUs and the issuance of shares, the Grantee shall be the record owner of the shares of Common Stock underlying the RSUs unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a stockholder of the Company (including voting and dividend rights).

9.3        Grantee is aware that the Company has a policy governing the trades of its insiders and, in accordance therewith, Grantee acknowledges that he has been advised to consider execution of a Rule 10b5-1 plan to provide for any future transactions in the Company's securities that he may desire to make in order to meet his personal planning needs.  The Company will assist the Grantee in the preparation of a Rule 10b-5-1 plan, at the Company's expense, upon Grantee's request.

10.            No Right to Continued Service. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any position with the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee's employment at any time, with or without cause.

11.            Adjustments. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the RSUs shall be adjusted or terminated in any manner as contemplated by Section 7 of the Plan.

12.            Tax Liability and Withholding.

12.1                  The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the RSUs and to take all such other action as the Board of Directors deems reasonably necessary to satisfy all obligations for the payment of such withholding taxes. The Board of Directors may permit the Grantee to satisfy any federal, state or local tax withholding obligation by any of the following means, or by a combination of such means:

(a)      tendering a cash payment;

(b)      authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable or deliverable to the Grantee as a result of the vesting of the RSUs; provided, however, that no shares of Common Stock shall be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or

(c)      delivering to the Company previously owned and unencumbered shares of Common Stock.

12.2                  Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("Tax-Related Items"), the ultimate liability for all Tax-Related Items is and remains the Grantee's responsibility, and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting or settlement of the RSUs or the subsequent sale of any shares, and (b) does not commit to structure the RSUs to reduce or eliminate the Grantee's liability for Tax-Related Items.  Within 5 days of any vesting date of an RSU, the Company has the right, but not the obligation, to purchase from Grantee a number of the vested shares of common stock underlying such vested RSU equal to 33% of the value of the vested common stock, using the VWAP of the Common Stock for the five trading day period, ending on the trading date prior to the vesting event, as reported on the NYSE MKT or, if the Company's common stock is not then listed on the NYSE MKT, as reported by such other exchange as shall then have the Company's common stock listed.

13.            Compliance with Law. The issuance and transfer of shares of Common Stock in connection with the RSUs shall be subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's shares of Common Stock may be listed. No shares of Common Stock shall be transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Company will ensure that a sufficient number of shares of its common stock are registered on Form S-8 prior to the vesting of any RSU.

14.            Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Chief Executive Officer or the General Counsel of the Company at the Company's principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee's address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

15.            Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Maryland without regard to conflict of law principles.

16.            Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Board of Directors for review. The resolution of such dispute by the Board of Directors shall be final and binding on the Grantee and the Company.

17.            RSUs Subject to Plan. This Agreement is subject to the Plan as approved by the Company's stockholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

18.            Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee's beneficiaries, executors and administrators.

19.            Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

20.            Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the RSUs in this Agreement does not create any contractual right or other right to receive any RSUs or other awards in the future. Future awards, if any, will be at the sole discretion of the Board of Directors of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee's employment with the Company.

21.            Amendment. The Board of Directors has the right to amend, alter, suspend, discontinue or cancel the RSUs, prospectively or retroactively; provided, that, no such amendment shall adversely affect the Grantee's material rights under this Agreement without the Grantee's consent.

22.            Section 162(m). All payments under this Agreement are intended to constitute "qualified performance-based compensation" within the meaning of Section 162(m) of the Code. This Award shall be construed and administered in a manner consistent with such intent.

23.            Section 409A. This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), and any exemption from Section 409A of the Code, and shall in all respects be administered in accordance with and interpreted to ensure compliance with Section 409A of the Code.  Grantee's termination of employment events under this Agreement shall be interpreted in a manner consistent with the separation from service rules under Section 409A of the Code.  Furthermore, if, at the time of termination of employment with the Company, Company has stock which is publicly traded on an established securities market and Grantee is a "specified employee" (as defined in Section 409A of the Code) and it is necessary to postpone the vesting or distribution of Common Stock otherwise payable pursuant to this Agreement as a result of such termination of employment to prevent any accelerated or additional tax under Section 409A of the Code, then Company shall postpone the commencement of the payment of such payment or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Grantee) that are not otherwise paid within the short-deferral exception under Section 409A of the Code and are in excess of the lessor of two (2) times (i) Grantee's then annual compensation or (ii) the limit on compensation then set forth in Section 401(a)(17) of the Code, until the first payroll date that occurs after the date that is six months following Grantee's separation from service with the Company (within the meaning of Section 409A of the Code).  The accumulated postponed distribution of shares of Common Stock shall be made within ten days after the end of the six month period.

24.            No Impact on Other Benefits. The value of the Grantee's RSUs is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

25.            Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

26.            Acceptance. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the terms and provisions thereof, and accepts the RSUs subject to all of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon the vesting or settlement of the RSUs or disposition of the underlying shares and that the Grantee has been advised to consult a tax advisor prior to such vesting, settlement or disposition.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	 	
GSE SYSTEMS, INC.

	 	
By:___________________________

Name:_________________________

Title:__________________________

  

	 	 
	 	
______________________________

  

 

EXHIBIT 1

Performance Period

The Performance Period shall be the period commencing on the date hereof and ending on  .

Performance Measures

The number of RSUs vested shall be determined by reference to the Volume Weighted Average Price ("VWAP") of the Company's common stock, calculated to two decimal places, using all trades completed on a trading day as reported by the NYSE MKT or, if the Company's common stock is not then listed on the NYSE MKT, by such other exchange on which the Company lists its common stock. For example, if the Company's common stock traded three times on a single trading date in the following amounts (20 shares traded at $2.50, 55 shares traded at $2.51 and 100 shares traded at $2.48), the VWAP for that day would be $2.49.

Determining RSUs Earned

Except as otherwise provided in the Plan, upon execution of the Employment Agreement, the Grantee will receive                                                       RSUs which will vest in their entirety if the VWAP of the Common Stock as quoted on the NYSE MKT exceeds $                             for a 90 consecutive trading day period.

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