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rmsapa.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    

    

    

    

    

    ASSET
PURCHASE AGREEMENT

    

    

    

    Between

    

    

    DXP
ENTERPRISES, INC.

    (“Buyer”)

    

    

    and

    

    

    ROCKY
MTN. SUPPLY, INC.

    (“Seller”)

    

    and

    

    THE
SHAREHOLDERS

    

    JANUARY
__, 2008

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSET PURCHASE
AGREEMENT

    

    

    THIS ASSET PURCHASE AGREEMENT (this
“Agreement”) is made and entered into this __ day of January, 2008 (“the
Effective Date”), by and among ROCKY MTN. SUPPLY, INC., a Colorado corporation
(the “Seller”), the SHAREHOLDERS and DXP ENTERPRISES, INC., a Texas corporation
(the “Buyer”).

    

    W I T N E S S E T H:

    

    WHEREAS, the Seller desires to transfer
to the Buyer the Business and all of the Transferred Assets and the Assumed
Liabilities and the Buyer desires to acquire such Business, Transferred Assets
and Assumed Liabilities, all upon the terms and subject to the conditions set
forth herein; and

    

    WHEREAS, the parties hereto desire to
set forth certain representations, warranties, covenants and agreements, all as
more fully set forth below;

    

    NOW, THEREFORE, in consideration of the
premises and the mutual covenants and agreements contained herein, the parties
hereto agree as follows:

    

    ARTICLE
1

    PURCHASE AND SALE OF
ASSETS

    

    1.01 Transferred
Assets.

    

    (a) Subject
to the terms and conditions of this Agreement and in consideration of the
obligations of the Buyer as provided herein, and except for the Excluded Assets
as provided in Section
1.02 hereof, at the Closing, the Seller shall sell, assign, transfer,
grant, bargain, deliver and convey to the Buyer, free and clear of all Liens,
other than Permitted Liens, all of Seller’s right, title and interest in, to and
under the Business, as a going concern, and all assets owned or leased and used
by the Seller in connection with or arising out of the Business of every type
and description, real or personal, tangible and intangible, wherever located and
whether or not reflected on the books and records of the Seller (hereinafter
sometimes collectively referred to as the “Transferred Assets”), including, but
not limited to:

    

    
      	
              (i)  

            	
              all
      tangible personal property, including but not limited to the Equipment,
      furniture and vehicles set forth in Schedule
      1.01(a)(i) to the Disclosure
Schedule;

            

    

    

    
      	
              (ii)  

            	
              all
      Inventories, including the Inventories set forth in Schedule
      1.01(a)(ii) to the Disclosure
Schedule;

            

    

    

    
      	
              (iii)  

            	
              all
      cash, accounts receivable and other rights to payment from customers of
      Seller, including the accounts receivable set forth in Schedule
      1.01(a)(iii) to the Disclosure
Schedule;

            

    

    

    
      	
              (iv)  

            	
              the
      Proprietary Information, including but not limited to the name “Rocky Mtn.
      Supply” or any derivative thereof, and the names of the customers and
      suppliers of the Business;

            

    

    

    
      	
              (v)  

            	
              all
      Contracts and Other Agreements, including but not limited to (A) all
      rights of Seller under non-disclosure or confidentiality agreements,
      non-compete or non-solicitation agreements with former employees,
      Transferred Employees and agents of Seller or with third Persons to the
      extent relating to the Business or the Transferred Assets and (B) all
      rights of Seller under or pursuant to all warranties, representations and
      guarantees made by suppliers, manufacturers and contractors to the extent
      relating to products sold and services provided to Seller or to the extent
      affecting any Transferred Assets or the Business (but specifically
      excluding warranties, representations and guaranties specifically and
      solely relating to any Excluded Assets or Retained
      Liabilities);

            

    

    

    
      	
              (vi)  

            	
              [intentionally
      omitted];

            

    

    

    
      	
              (vii)  

            	
              to
      the to the extent assignable, all prepaid expenses, deposits and similar
      assets of Seller, including but not limited to customer deposits, security
      for rent, electricity, telephone or other utilities and prepaid charges
      and expenses including prepaid rent and any prepaid items shown on
      Seller’s November 30, 2007 Financial Statements relating to the
      Transferred Assets and the
Business;

            

    

    

    
      	
              (viii)  

            	
              all
      documents that are related to the Business, including but not limited to
      documents relating to products, services, marketing, advertising,
      promotional materials, Proprietary Information, personnel files of the
      Transferred Employees and all files, customer files and related documents
      (including credit information), supplier lists, records, literature and
      correspondence, to the extent permitted by law to be assigned and
      transferred;

            

    

    

    
      	
              (ix)  

            	
              to
      the extent assignable, all permits, including but not limited to
      environmental permits used by Seller in the Business and all permits
      necessary to conduct the Business as currently conducted, and all rights,
      and incidents of interests therein;

            

    

    

    
      	
              (x)  

            	
              all
      supplies and computer equipment owned by Seller and used or held for use
      in connection with the Transferred Assets and the
  Business;

            

    

    

    
      	
              (xi)  

            	
              to
      the extent not used to repair or replace any Transferred Assets, all
      rights to third-party property and casualty insurance proceeds to the
      extent receivable in respect of property or assets that would otherwise be
      Transferred Assets; and

            

    

    

    
      	
              (xii)  

            	
              all
      other intangible assets of Seller, if any, associated with the Transferred
      Assets and the Business.

            

    

    

    (b) The
Seller shall use its reasonable efforts to obtain, or as the case may be assist
the Buyer in obtaining, such consents of third parties as are necessary for the
assignment of the Transferred Assets; provided, however, that Seller shall
not be required to pay any amounts in respect of obtaining such
consents.  To the extent that any of the Transferred Assets are not
assignable or consents to the assignment thereof cannot be obtained as herein
provided, such Transferred Assets shall be held by the Seller in trust for the
Buyer and any obligations with respect thereto shall be performed by the Buyer
in the name of the Seller and all benefits and obligations derived thereunder
shall be for the action of the Buyer.  The Seller shall, at the
request of the Buyer, enforce in a reasonable manner, at the cost of and for the
account of the Buyer, any and all rights of the Seller against such third party
relating to any such Transferred Assets.  Seller shall promptly pay
over to the Buyer all money or other consideration received by it in respect of
such entitlement.

    

    (c) The
Seller shall also notify each Person which may have possession of the
Transferred Assets on the Closing Date of the transfer of such Transferred
Assets to the Buyer.

    

    1.02 Excluded
Assets.  There shall be excluded from the Transferred Assets
(the “Excluded Assets”): (i) the life insurance policies insuring the lives of
the Shareholders in the amounts of $915,000, in the aggregate, for Edward Rutt
and $652,000 for Dennis Hinchley, (ii) the minute books, organizational
documents, stock registers and such other books and records of Seller pertaining
to ownership, organization or existence of Seller as a corporation, provided, however, duplicate copies of
such records shall be provided to Buyer as are reasonably necessary to enable
Buyer to file tax returns and file information with the Securities and Exchange
Commission, and (iii) those assets of listed or described on Schedule 1.02 of the
Disclosure Schedule.

    

    1.03 Consideration.

    

    (a) The
consideration for Buyer’s purchase of the Transferred Assets and the Business
shall be:  (i) subject to adjustment as otherwise provided under this
Section 1.03,
$4,050,000.00 (the “Seller Cash Payment”), (ii) a promissory note in the form of
Exhibit “A” in
an original principal amount of $400,000.00 (the “Seller Note”, which along with
the Seller Cash Payment, subject to adjustment as otherwise provided in this
Section 1.03,
shall be the “Seller Purchase Price”), and (iii) the assumption of the Assumed
Liabilities (together with the Seller Purchase Price, shall be the “Seller
Consideration”).  On the Closing Date, Buyer shall (x) pay the Seller
Cash Payment to Seller (i) by wire transfer of $3,425,500.00 of same day funds
into an account(s) designated by Seller and (ii) by wire transfer of $624,500.00
(the “Escrow Amount”) to the escrow account as specified in the Escrow Agreement
and (y) deliver to Seller the duly executed Seller Note.

    

    (b)           In
consideration of the Shareholders covenants and agreements as set forth in Section 7.07 and
7.10 hereof, on
the Closing Date Buyer shall execute and deliver to each of the Shareholders the
Shareholder Note in the amount of $150,000.00.  In the event Buyer
were to seek damages for any breach of Section 7.07 or 7.10, the amount
specified in the immediately preceding sentence or otherwise allocated by the
parties to the covenants set forth in Sections 7.07 and
7.10 shall not
be considered a measure of or limit on such damages.  On the Closing
Date, Buyer shall enter into and consummate with the Shareholders a separate
purchase of the goodwill and intangible assets of the Shareholders associated
with the Business, and in consideration therefor shall pay each of the
Shareholders the amount of $225,000 (for an aggregate payment in respect thereof
to the Shareholders of $450,000, the “Personal Goodwill Consideration”) by wire
transfer of same day funds into an accounts designated by the
Shareholders.

    

    (c)           Not
later than sixty (60) days after the Closing Date, Buyer shall cause to be
prepared and delivered to Seller and the Shareholders a statement setting forth
Buyer’s calculation of Net Working Capital as of the end of business on January
31, 2008 (the "Closing Statement"), which shall be prepared by Buyer in
accordance with Schedule
14.42.

    

    (d)           If
Seller disagrees with Buyer’s calculations in the Closing Statement, Seller may,
within fifteen (15) days after delivery of the Closing Statement, deliver a
notice to Buyer disagreeing with such calculation and setting forth Seller’s
calculation of such amounts (a "Dispute Notice").  Any such Dispute
Notice shall specify those items or amounts as to which Seller disagrees, and
Seller shall be deemed to have agreed with all other calculations and amounts
contained in the Closing Statement.  If a Dispute Notice shall be duly
delivered by Seller to Buyer, Buyer and Seller shall, during the fifteen (15)
days following such delivery, use their good faith efforts to reach agreement on
the disputed items or amounts in order to determine, as may be required, the Net
Working Capital as of the Closing Date, as applicable, which amount shall not be
less than the amount thereof shown in the Closing Statement nor more than the
amount thereof shown in Seller’s Dispute Notice.  If the parties so
resolve all disputes, the computation of the Net Working Capital as of the
Closing Date, as amended to the extent necessary to reflect the resolution of
the dispute, shall be conclusive and binding on all parties.  If
during such period, Buyer and Seller are unable to reach an agreement, they
shall within five (5) days thereafter cause Hein & Associates, LLP (the
“Firm”) to review this Agreement and the disputed items or amounts for the
purpose of calculating the Net Working Capital as of the Closing Date (it being
understood that in making such disputed calculation, the Firm shall be
functioning as an expert and not as an arbitrator).  In making such
disputed calculation, the Firm shall consider only those items or amounts in the
Closing Statement and the Dispute Notice to which Seller has
disagreed.  The Firm shall deliver to Buyer and Seller, as promptly as
practicable (but in any case no later than thirty (30) days from the date of
engagement of the Firm), a report setting forth the calculations of the Net
Working Capital as of the Closing Date.  Such report shall be final
and binding upon Buyer, Seller and the Shareholders and judgment may be entered
to enforce such report in any court of competent jurisdiction.  The
fees, costs and expenses of the Firm (“the Expenses”) shall be  paid
as follows: (i) if the event the Firm agrees with Buyer’s calculation of the Net
Working Capital, then Seller shall pay the Expenses, (ii) if the Firm agrees
with Seller’s calculation of the Net Working Capital, then Buyer will pay the
Expenses, or (iii) if the Firm does not agree with Buyer’s or Seller’s
calculation of Net Working Capital, then the Expenses shall be prorated between
Buyer and Seller based on the percentage of adjustment for each parties’ Net
Working Capital calculation.

     

    (f)           Buyer
and Seller shall, and shall cause their respective representatives to, cooperate
and assist in the preparation of the Closing Statement and the calculation of
the Net Working Capital and in the conduct of the review thereof, including the
making available to the extent necessary books, records, work papers and
personnel.

     

    (g)           If
the Final Net Working Capital is less than Four Million Two Hundred Seventy and
No/100 Dollars ($4,270,000.00), Seller and Buyer shall set-off and apply such
difference to the Seller Note in the direct order of maturity of the
payments.

     

    (h)           The
Escrow Amount shall be held and disbursed pursuant to the terms and conditions
of the Escrow Agreement.  Seller shall take all requisite action to
provide notices and consummate the payment and redemption of all preferred stock
issued by the Seller, with such payment and redemption to finally occur no later
than the sixty-first (61st) day
following the Closing Date.  Upon such final payment and redemption of
the Seller’s preferred stock, any remaining amounts held in the escrow account
under the terms of the Escrow Agreement (and not otherwise required for the
payment of fees and expenses thereunder) shall be distributed to Seller, and
Buyer agrees to consent to such final distribution.

     

    1.04 Assumed
Liabilities.  On the terms and subject to the conditions set
forth in this Agreement, at the Closing the Buyer will assume, effective as of
the Closing Date, the following liabilities of Seller (collectively, the
“Assumed Liabilities”):

    

    (a)           all
liabilities of Seller under the Contracts and Other Agreements that arise out of
or relate to the performance thereof for the period from and after the Closing
Date and the other obligations and liabilities associated with the operation of
the Business from and after the Closing Date;

    

    (b)           all
Trade Payables of the Seller as of the Closing Date arising out of the ordinary
course of the Business prior to the Closing Date;

    

    (c)           all
obligations of Seller with respect to unpaid payroll and sales taxes as of the
Closing Date arising in the ordinary course of Business prior to the Closing
Date;

    

    (d)        the
liabilities set forth in Article 6 assumed by Buyer;

    

    (e)           the
four (4) promissory notes payable to GMAC and secured by four (4) vehicles as
described in the January 31, 2007 Financial Statements (and set forth therein in
an aggregate amount of indebtedness of $40,258) provided to Buyer;

    

    (f)           federal
and state income taxes related to the Business from February 1, 2007 to the
Closing Date (and for which Seller may be entitled to obtain reimbursement from
Buyer in accordance with Section 1.07(c)
hereof); and

    

    (g)           those
liabilities listed on Schedule
1.04(g).

    

    1.05 Liabilities Not Assumed by
the Buyer.  Except for the Assumed Liabilities and the warranty
claims as provided in Section 7.09 hereof,
the Seller shall pay and discharge in due course all of its liabilities, debts
and obligations, whether known or unknown, now existing or hereafter arising,
contingent or liquidated, including, without limitation, those listed in Schedule 1.05 of the
Disclosure Schedule (the “Retained Liabilities”), and the Buyer shall not
assume, or in any way be liable or responsible for, any of such Retained
Liabilities.  Without limiting the generality of the foregoing, the
Retained Liabilities shall include the following:

    

    (a) any
liability or obligation of the Seller arising out of or in connection with this
Agreement and the consummation and performance of the transactions contemplated
hereby, whether or not such transactions are consummated, including but not
limited to, and except as otherwise provided herein, any liability for Taxes so
arising;

    

    (b) except as
set out in Section
1.04(f), any liability or obligation for any and all Taxes of, or
pertaining or attributable to, (i) the Seller for any period that ends on or
before, or includes, the Closing Date, or (ii) the Business and/or the
Transferred Assets for any period or portion thereof that ends on or before the
Closing Date (including, but in no way limited to, any and all Taxes described
in clauses (i) and (ii) of this Section 1.05(b) for
which liability is or may be sought to be imposed on the Buyer under any
successor liability, transferee liability or similar provision of any applicable
foreign, federal, state or local law);

    

    (c) except
for the warranty claims as provided in Section 7.09 hereof,
all other liabilities and obligations to any Person arising prior to the Closing
or related to the conduct or operation of the Transferred Assets or the Business
prior to the Closing Date, including, but not limited to, the Pre-Closing
Obligations and the specific liabilities, obligations or litigation listed on
Schedule
1.05(c) of the Disclosure Schedule; and

    

    (d) all
environmental costs and liabilities, to the extent arising out of or otherwise
related to:  (i) the ownership or operation by Seller of the
Transferred Assets or the Business prior to the Closing Date, and (ii) the
Excluded Assets or any other real property formerly owned, operated, leased or
otherwise used by Seller;

    

    (e) except as
set forth in Article 6, all
liabilities arising out of, relating to or with respect to (i) the employment or
performance of services, or termination of employment or services by Seller of
any individual (including any Transferred Employee) on or before the Closing
Date, (ii) worker’s compensation claims against Seller that relate to the
conduct of the Business or the operation of the Transferred Assets on or before
the Closing Date, irrespective of whether such claims are made prior to or after
the Closing or (iii) any employee benefit plan of the Seller;

    

    (f) all
liabilities arising out of, under or in connection with any indebtedness of
Seller, not specifically assumed by Buyer in this Agreement, including but not
limited to notes payable to the Shareholders or to notes payable to any employee
or employees of the Seller;

    

    (g) all
liabilities in respect of:  (i) any pending or threatened legal
proceeding or any claim arising out of, relating to or otherwise in respect of
the operation of the Business prior to the Closing Date or (ii) any Excluded
Asset;

    

    (h) except as
provided in Section
7.09, all liabilities relating to any dispute with any client or customer
of the Business existing as of the Closing Date or based upon, relating to or
arising out of events, actions, or failures to act prior to the Closing Date;
provided, however, the Buyer agrees to reasonably assist Seller in satisfying
such dispute at Seller's cost, including by providing services of Buyer and the
Transferred Employees and Transferred Assets; and

    

    (i) all
liabilities related to the preferred stock issued by the Seller, including but
not limited to accumulated undeclared dividends, liquidation preferences or any
other provisions of said preferred stock.

    

    1.06 Prorations of Expenses and
Certain Property Taxes.

    

    (a) Any
general property Tax assessed against or pertaining to the Transferred Assets,
including pursuant to the Leases being entered per Section 7.08, for the
taxable period that includes the Closing Date shall be prorated between the
Buyer (after the Closing Date) and the Seller (prior to and including the
Closing Date) as of the Closing Date.  In the event the amount of any
such general property Tax cannot be ascertained as of the Closing Date,
proration shall be made on the basis of the preceding year and to the extent
that such proration may be inaccurate the Seller and the Buyer agree to make
such payment to the other after the tax statements have been received as are
necessary to allocate such general property Tax properly between the Seller and
the Buyer as of the Closing Date.

    

    (b) Except as
otherwise provided in this Agreement, the Seller and the Buyer agree that
amounts payable with respect to utility charges and other items of expense
attributable to the conduct of the Business shall be prorated as of the Closing
Date (with Seller responsible for the period up to and including the Closing
Date and Buyer responsible for the period after the Closing Date) to the extent
the charges and expenses cannot be identified as to the party who received the
benefits to which such charges and expenses relate.

    

    1.07 Transfer Taxes; Recording
Fees; Tax Reimbursement.

    

    (a) The Buyer
and the Seller acknowledge and agree that the Purchase Price does not include
any sales tax imposed as a result of the transfer of equipment and motor
vehicles.  The Buyer hereby agrees to indemnify the Seller and the
Shareholders against, and agrees to protect, save and hold the Seller and
Shareholders harmless from, any loss, liability, obligation or claim (whether or
not ultimately successful) for sales, transfer or other similar Taxes (and any
interest, penalties, additions to tax and fines thereon or related thereto)
imposed as a result of the consummation of the transactions contemplated by this
Agreement.

    

    (b) The Buyer
shall pay any and all recording, filing or other fees relating to the conveyance
or transfer of the Transferred Assets from the Seller to the Buyer.

    

    (c) Seller
shall timely file all Tax Returns relating to the operation of the Transferred
Assets and conduct of the Business prior to the Closing Date.  If
Seller remits any income taxes that are Assumed Liabilities of Buyer pursuant to
Section 1.04(f)
hereof, then Buyer shall promptly reimburse Seller for such payment upon
provision by Seller of reasonable written evidence of such
remittance.

    

    1.08 Allocation of Purchase
Price.

    

    (a) Seller,
the Shareholders and Buyer have prepared an initial written statement setting
forth the allocation of the consideration (including, without limitation, the
Seller Purchase Price and any adjustments thereto) deemed to have been paid for
federal income tax purposes by the Buyer to the Seller and the Shareholders
pursuant to this Agreement (the “Tax Consideration”) among the Transferred
Assets and the other covenants and rights arising hereunder (the “Allocation”)
and a copy of such written statement is attached hereto as Exhibit
“H”.

    

    (b) For
federal income tax purposes (including, without limitation, Buyer’s, each
Shareholder’s and the Seller’s compliance with the reporting requirements of
Section 1060 of the Code), each of the Seller, Shareholders and the Buyer hereby
agree to use the Allocation and to cooperate in good faith with each other in
connection with the preparation and filing of any information required to be
furnished to the Internal Revenue Service under Section 1060 of the Code
(including, without limitation, Section 1060(b) and (e) of the Code) and any
applicable regulations thereunder.  Without limiting the generality of
the preceding sentence, the Buyer, Shareholders and the Seller agree to (i)
report the Allocation to the Internal Revenue Service on Form 8594 and, if
required, supplemental Forms 8594, in accordance with the instructions to Form
8594 and the provisions of Section 1060 of the Code and the applicable
regulations thereunder, and (ii) coordinate their respective preparation and
filing of each such Form 8594 and any other forms or information statements or
schedules required to be filed under Section 1060 of the Code and the applicable
regulations thereunder so that the Allocation and information reflected on such
forms, statements and schedules shall be consistent.

    

    (c) Notwithstanding
the foregoing provisions of this Section 1.08, Buyer
shall prepare and deliver to Seller and Shareholders from time to time revised
statements of any Allocation to the extent that any matters need updating
(including, without limitation, in respect of any adjustments under Section 1.03 hereof),
which such revised statements shall be substantially consistent with the manner
of allocation previously agreed by the Seller, Shareholders and the
Buyer.

    

    1.09 Right to Control
Payment.  Buyer shall have the right, but not the obligation,
to make any payment due from Seller with respect to any Retained Liabilities
which are not paid by Seller within five (5) Business Days following written
request for payment from Buyer; provided, however, that if Seller
advises Buyer in writing during such five (5) Business Day-period that a good
faith payment dispute exists or Seller has valid defenses to non-payment with
respect to such Retained Liability, then Buyer shall not have the right to pay
such Retained Liability.  Seller agrees to reimburse Buyer promptly
and in any event within five (5) Business Days following written notice of such
payment by Buyer for the amount of any payment made by Buyer pursuant to this
Section
1.09.

     

    1.10 Accounts
Receivable.  Following the Closing Date, Seller and
Shareholders shall provide reasonable assistance to Buyer in the collection of
the accounts receivable.  If Seller shall receive payment in respect
of the accounts receivable, then Seller shall promptly forward such payment to
Buyer.

    

    ARTICLE
2

    CLOSING

    

    
      	
              Subject
      to the conditions set forth in this Agreement, the Closing shall take
      place at the offices of Brownstein Hyatt Farber Schreck, LLP, located in
      Denver, Denver County, Colorado, at 10:00 a.m. on or before January 31,
      2008 or at such other time, date and place as the parties hereto shall
      mutually agree upon in writing (the “Closing Date”).  Except as
      set forth in Article 13,
      failure to consummate the transactions contemplated hereby on such date
      shall not result in a termination of this Agreement or relieve any party
      hereto of any obligation hereunder.  Title to, ownership of,
      control over and risk of loss of the Transferred Assets shall pass to the
      Buyer at the Closing.

            

    

    

    ARTICLE
3

    REPRESENTATIONS, WARRANTIES
AND COVENANTS

    OF THE SELLER AND THE
SHAREHOLDERS

    

    
      	
              The
      Seller and the Shareholders, as applicable, hereby represent and warrant
      to the Buyer and covenant and agree as
follows:

            

    

    

    3.01 Corporate
Matters.

    

    (a) The
Seller is a corporation organized, validly existing and in good standing under
the laws of the State of Colorado.  The Seller is duly authorized,
qualified and licensed and has all requisite power and authority under all
applicable laws, ordinances and orders of public authorities to own, operate and
lease its properties and assets and to carry on its business in the places and
in the manner currently conducted.  There is no other jurisdiction in
which the nature and extent of the Seller’s business or the character of its
assets makes qualification to transact business as a foreign corporation
necessary, except where failure to be so qualified would not be reasonably
expected to result in a Material Adverse Effect.  The Seller has all
requisite corporate power and authority to enter into this Agreement and to
perform its obligations under this Agreement.

    

    (b) The
Seller has no Subsidiaries.

    

    (c) The
Seller does not do business in any state or commonwealth under any name other
than the corporate name set forth in the first paragraph of this
Agreement.

    

    (d) The
Seller and the Shareholders represent and warrant to the Buyer that (i) the
Shareholders hold of record and own beneficially 24,920 shares of the common
stock which is all of the issued and outstanding common stock of the Seller free
and clear of any Liens, except encumbrances on transfer generally imposed under
applicable securities law; (ii) 61,144.5 shares of non-voting preferred stock of
Seller are issued and outstanding, with some shares providing for an 8%
cumulative dividend and other shares providing for a 12% cumulative dividend
both payable semi-annually and all such shares are callable at $10 per share
plus accumulated and unpaid dividends (the “Preferred Shares”); and (iii) no
other form of stock of the Seller has been issued by the Seller.  Set
out in Schedule
3.01(d) are the names of the parties that hold of record and own
beneficially all of the preferred stock and common stock of the Company and the
number of shares of non-voting preferred stock and common stock owned by each
party.  Neither the Shareholders nor, to the Seller’s knowledge, any
other Persons owning common stock and preferred stock of the Company are party
to an option, warrant, purchase right, or other contract or commitment that
could require the Shareholders or such other owners of the common or preferred
stock to sell, transfer, or otherwise dispose of any preferred stock or common
stock of the Seller (other than in this Agreement).  The Shareholders
or the other owners of the preferred stock are not a party to any voting trust,
proxy, or other agreement or understanding with respect to the voting of any
shares of the preferred or the common stock of the Seller.  All of the
preferred and common stock of the Seller has been duly authorized and validly
issued.  Set out in Schedule 3.01(d) are
copies of the Articles of Incorporation and Bylaws of the Seller and all
amendments thereto.

    

    3.02 Validity of Agreement and
Conflict with Other Instruments.

    

    (a) This
Agreement has been duly authorized by the Shareholders of the
Seller.  No further corporate action is necessary on the part of the
Seller to execute and deliver this Agreement or to consummate the transactions
contemplated hereby.  This Agreement has been duly executed and
delivered by the Seller and the Shareholders and is a legal, valid and binding
obligation of the Seller and the Shareholders enforceable against the Seller and
the Shareholders in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws from time to time in effect that affect creditors’ rights generally
and by legal and equitable limitations on the availability of specific
remedies.

    

    (b) The
covenants set out in Sections 7.07 and
7.10 hereof
have been approved by all necessary corporate action on the part of Seller and,
when executed and delivered at the Closing as contemplated by this Agreement,
shall be legal, valid and binding obligations of the Seller and the
Shareholders, enforceable against the Seller and the Shareholders in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws from time to
time in effect that affect creditors’ rights generally and by legal and
equitable limitations on the availability of specific remedies.

    

    (c) The
execution, delivery and performance of this Agreement and the other agreements
and documents to be delivered by the Seller to the Buyer, the consummation of
the transactions contemplated hereby or thereby, and the compliance with the
provisions hereof or thereof, by the Seller will not, with or without the
passage of time or the giving of notice or both:

    

    
      	
              (i)  

            	
              conflict
      with, constitute a breach, violation or termination of any provision of,
      or give rise to any right of termination, cancellation or acceleration, or
      loss of any right or benefit or both, under, any of the Contracts and
      Other Agreements to which the Seller is a party or by which any of them is
      bound, other than, in each case, such that would not materially and
      adversely affect the ability of the Seller to consummate the transactions
      contemplated hereby or thereby;

            

    

    

    
      	
              (ii)  

            	
              result
      in an acceleration or increase of any amounts due with respect to the
      Trade Payables;

            

    

    

    
      	
              (iii)  

            	
              conflict
      with or violate the Articles of Incorporation or Bylaws of the
      Seller;

            

    

    

    
      	
              (iv)  

            	
              result
      in the creation or imposition of any Lien on any of the Transferred
      Assets; or

            

    

    

    
      	
              (v)  

            	
              violate
      any law, statute, ordinance, regulation, judgment, writ, injunction, rule,
      decree, order or any other restriction of any kind or character applicable
      to the Seller or any of their respective properties or
    assets.

            

    

    

    (d) The
execution, delivery and performance of this Agreement and the other agreements
and documents to be delivered by the Shareholders, the consummation of the
transactions contemplated hereby and thereby, and the compliance with the
provisions hereof and thereof, by the Shareholders will not, with or without the
passage of time or the giving of notice or both:

    

    
      	
              (i)  

            	
              conflict
      with, constitute a breach, violation or termination of any provision of,
      or give rise to any right of termination, cancellation or acceleration, or
      loss of any right or benefit or both under any contract or other agreement
      to which the Shareholders are a party or by which any of them is bound,
      other than, in each case, such that would not materially and adversely
      affect the ability of each Shareholder to consummate the transactions
      contemplated hereby or thereby; or

            

    

     

    
      	
              (ii)  

            	
              violate
      any law, statute, ordinance, regulation, judgment, writ, injunction, rule,
      decree, order or any other restriction of any kind or character applicable
      to the Shareholders or any of their respective properties or
      assets.

            

    

    

    (e) Attached
as Schedule
3.02(e) of the Disclosure Schedule are true, correct and complete copies
of all resolutions adopted by the directors and shareholders of Seller with
respect to the Seller approving this Agreement and the transactions contemplated
hereby.  Such resolutions were adopted at meetings duly called and
convened at which a quorum was present and acting throughout or by unanimous
written consents.  Such resolutions are in full force and effect
without amendment or modification.

    

    3.03 Approvals, Licenses and
Authorizations.

    

    (a) Except as
set forth on Schedule
3.03(a), no order, license, consent, waiver, authorization or approval
of, or exemption by, or the giving of notice to, or the registration with, or
the taking of any other action in respect of, any Person not a party to this
Agreement, including any Governmental Entity, and no filing, recording,
publication or registration in any public office or any other place is now, or
under existing law in the future will be, necessary on behalf of the Seller to
authorize the execution, delivery and performance of this Agreement or any other
agreement contemplated hereby to be executed and delivered by them and the
consummation of the transactions contemplated hereby or thereby (including, but
not limited to, assignment of the Transferred Assets), or to effect the
legality, validity, binding effect or enforceability thereof.

    

    (b) Schedule 3.03(b)
contains a list of all material licenses, permits, concessions, warrants,
franchises and other governmental authorizations and approvals of all
Governmental Entities required or necessary to carry on the Business in the
places and in the manner currently conducted have been duly obtained, are in
full force and effect.  Except as set forth on Schedule 3.03(b), no
violations are in existence or have been recorded since January 1, 2007 with
respect to such licenses, permits or other authorizations and no proceeding is
pending or, to the best knowledge of the Seller, threatened with respect to the
revocation or limitation of any of such licenses, permits or other
authorizations.  The Seller has complied with all laws, rules,
regulations and orders applicable to the Business, and all rules, regulations
and orders respecting the provision of services by the Seller, except for
violations that would not have a Material Adverse Effect.

    

    3.04 Title to and Condition of
Transferred Assets.  Seller represents and warrants to Buyer as
follows:

    

    (a) The
Seller leases the Facilities.  All of the Transferred Assets are
located at one of the Facilities.

    

    (b) The
Seller has good and marketable title to all Equipment free and clear of all
Liens other than those Liens set forth on Schedule 3.04(b) of
the Disclosure Schedule and Permitted Liens.  All of the Equipment is
in the Seller’s possession and control and in good condition and repair,
ordinary wear and tear accepted, and is suitable for the purposes
used.

    

    (c) All
Inventories are set forth on Schedule 1.01(a)(ii)
of the Disclosure Schedule.  The Seller has valid title to all
Inventories free and clear of all Liens other than those Liens set forth on
Schedule
3.04(c) of the Disclosure Schedule and Permitted Liens, which Liens shall
be released on or prior to the Closing.  The Inventories are in good
and marketable condition and are saleable in the ordinary course of
business.  The Inventories constitute sufficient quantities for the
normal operation of the Business and the Inventories will be in such sufficient
quantities on the Closing Date.

    

    (d) The
accounts receivable comprising part of the Transferred Assets are owned by the
Seller free and clear of all Liens (other than those Liens set forth in Schedule 3.04(d) of
the Disclosure Schedule, which Liens shall be released on or prior to the
Closing and Permitted Liens) and relate to receivables owed to the
Seller.  All accounts receivable were generated in the ordinary course
of business pursuant to bona fide transactions and are payable on ordinary trade
terms.  The Seller is unaware of any existing facts or circumstances
that could reasonably be expected to increase uncollectible accounts receivable
beyond the allowance for bad debt reflected in the December 31, 2007 Financial
Statements.

    

    (e) The
Seller owns or possesses licenses or other rights to use, and will at the
Closing transfer to the Buyer, all rights to all Proprietary Information
necessary for the conduct of the Business as currently conducted, except for
standard "shrink wrapped, off the shelf" or "click-wrap"
software.  Set forth in Schedule 3.04(e) of
the Disclosure Schedule is a complete and accurate list of all patents,
trademarks, copyrights and licenses that Seller owns or possesses or otherwise
has rights to use pertaining to the Business, except for standard "shrink
wrapped, off the shelf" or "click-wrap" software including the jurisdictions in
which each such item has been issued or registered and the registration
date.  No licenses, sublicenses, covenants or agreements have been
granted or entered into by the Seller in respect of the items listed in Schedule 3.04(e) of
the Disclosure Schedule except as noted thereon.  The Seller has not
received any notice of infringement, misappropriation or conflict from any other
Person with respect to such Proprietary Information except as noted in Schedule 3.04(e) of
the Disclosure Schedule, and, to Seller's knowledge, the conduct of the Business
has not infringed, misappropriated or otherwise conflicted with any Proprietary
Rights of any such Person.  The Seller has not given indemnification
for patent, trademark, service mark or copyright infringements except to
licensees or customers in the ordinary course of business.  All of the
Proprietary Information that is owned by the Seller is owned free and clear of
all Liens except as set forth in Schedule 3.04(e) of
the Disclosure Schedule and Permitted Liens.  All Proprietary Rights
that are licensed by the Seller to third parties are licensed pursuant to valid
and existing license agreements and such interests are not subject to any Liens
other than those under the applicable license agreements.  The
consummation of the transactions contemplated by this Agreement will not result
in the loss of any Proprietary Information.  To Seller's knowledge,
the present business practices, methods and operations of Seller regarding the
Proprietary Information does not infringe, constitute an unauthorized use of,
misappropriation or violate any copyright, mark, patent, trade secret or other
similar right of any Person.  Except with respect to licenses of
commercial off-the-shelf software Seller is not obligated, required or under any
liability whatsoever to make any payments by way of royalties, fees or otherwise
regarding the Proprietary Information.

     

    (f) Other
than the Facilities, there is no real property or interest in real property
owned by Seller for use in the Business or in connection with the Transferred
Assets.  Schedule 14.24 of the
Disclosure Schedule sets forth a complete list of the six (6) Facilities leased
by Seller, including a legal description of each such Facility (including the
name of the third party lessor and the date of the lease and all amendments
thereto).  There is not any events of default regarding said six
Facility leases.  To Seller's knowledge, said leased real property is
not subject to any rights of first refusal, options to purchase except as set
out in the leases.

    

    (g) Except
for the current leases for the Facilities, the Seller owns or has rights to use,
and is transferring to the Buyer hereunder, all tangible assets necessary for
the conduct of the Business in the ordinary course consistent with past
practices.  The conduct of the Business in the ordinary course is not
dependent upon the right to use the property of others, except such property as
is leased or licensed by Seller and assignable to Buyer pursuant to and included
in the Transferred Assets.

    

    3.05 Contracts and
Commitments.  Seller represents and warrants to Buyer as
follows:

    

    (a) Other
than leases for the Facilities and as otherwise set forth in Schedule 3.05(a) of
the Disclosure Schedule, none of the Transferred Assets are subject to, and the
Seller is not a party to or bound by:

    

    
      	
              (i)  

            	
              any
      agreement, contract or commitment requiring the expenditure or series of
      related expenditures of funds in excess of $10,000 in any fiscal year
      (other than purchase orders in the ordinary course of business for goods
      necessary for the Seller to complete then existing contracts or purchase
      orders);

            

    

    

    
      	
              (ii)  

            	
              any
      agreement, contract or commitment requiring the payment for goods or
      services whether or not such goods or services are actually provided or
      the provision of goods or services at a price less than the Seller’s cost
      of producing or supplying such goods or providing such
      services;

            

    

    

    
      	
              (iii)  

            	
              any
      loan or advance to, or investment in, any Person or any agreement,
      contract, commitment or understanding relating to the making of any such
      loan, advance or investment;

            

    

    

    
      	
              (iv)  

            	
              any
      contract, agreement, indenture, note or other instrument relating to the
      borrowing of money or any guarantee or other contingent liability in
      respect of any indebtedness or obligation of any Person (other than the
      endorsement of negotiable instruments for deposit or collection in the
      ordinary course of business);

            

    

    

    
      	
              (v)  

            	
              any
      management service, employment, consulting or other similar type contract
      or agreement;

            

    

    

    
      	
              (vi)  

            	
              any
      agreement, contract or commitment that would limit the freedom of the
      Buyer or any affiliate thereof following the Closing Date to engage in any
      line of business, to own, operate, sell, transfer, pledge or otherwise
      dispose of or encumber any of the Transferred Assets or to compete with
      any Person or to engage in any business or activity in any geographic
      area;

            

    

    

    
      	
              (vii)  

            	
              any
      agreement, lease, contract or commitment or series of related agreements,
      leases, contracts or commitments not entered into in the ordinary course
      of business or, except for agreements to purchase or sell goods and
      services entered into in the ordinary course of business of the Seller,
      not cancelable by the Seller without penalty to the Seller within 30
      calendar days;

            

    

    

    
      	
              (viii)  

            	
              other
      than in respect of the Seller’s customary general warranty for goods sold
      as described on Schedule 3.13(a) to
      the Disclosure Schedule, any agreement or contract obligating the
      Seller or that would obligate or require any subsequent owner of the
      Business or any of the Transferred Assets to provide for indemnification
      or contribution with respect to any
matter;

            

    

    

    
      	
              (ix)  

            	
              any
      sales, distributorship or similar agreement relating to the products sold
      or services provided by the Seller;

            

    

    

    
      	
              (x)  

            	
              any
      license, royalty or similar
agreement;

            

    

    

    
      	
              (xi)  

            	
              any
      contract requiring performance by Seller for a period of one year or more
      or requiring Seller to purchase or sell a stated portion of its
      requirements or outputs;

            

    

    

    
      	
              (xii)  

            	
              any
      contract regarding the acquisition by Seller of any operating business or
      material assets or the capital stock of any Person;
  or

            

    

    

    
      	
              (xiii)  

            	
              any
      other agreement, contract or commitment that might reasonably be expected
      to have a Material Adverse Effect.

            

    

    

    (b) Seller is
not in material breach of any provision of, or is in material default (or knows
of any event or circumstance that with notice, or lapse of time or both, would
constitute an event of default) under the terms of any of the Contracts and
Other Agreements that constitute a part of the Transferred
Assets.  All of the Contracts and Other Agreements that constitute a
part of the Transferred Assets are in full force and effect.  To
Seller's knowledge, there are no pending or threatened disputes with respect to
any of the Contracts and Other Agreements.

    

    (c) The
enforceability of the Contracts and Other Agreements that constitute a part of
the Transferred Assets will not be affected in any manner by the execution and
delivery of this Agreement or the consummation of the transactions contemplated
hereby and none of the Contracts and Other Agreements that constitute a part of
the Transferred Assets require the receipt of the consent or waiver of any
Person or Governmental Entity prior to the sale, assignment, transfer,
conveyance or delivery thereof pursuant to this Agreement.

    

    3.06 Financial
Statements.  Seller represents and warrants to Buyer as
follows:

    

    (a) Attached
as Schedule
3.06 to the Disclosure Schedule are true, correct and complete copies of
(i) the reviewed balance sheets of the Business as of January 31, 2006 and
January 31, 2007 and the compiled balance sheet of Business as of May 31,
2007,  August 31, 2007, September 30, 2007, October 31, 2007 and
November 30, 2007, and (ii) the reviewed statements of income of the
Business for the annual periods ended January 31, 2006 and January 31, 2007, and
the compiled monthly and year-to-date statements of income of the Business for
the applicable periods ended May 31, 2007,  August 31, 2007, September
30, 2007, October 31, 2007 and November 30, 2007.  No later than three
(3) days prior to the Closing Date, Seller shall deliver to Buyer the compiled
balance sheet and statement of income for the Business for the period ended
December 31, 2007 (such balance sheet and statement of income, collectively with
each of the balance sheets and statements of income described in clauses (i) and
(ii) of this Section
3.06(a), referred to herein as the “Financial Statements”).

     

    The
Financial Statements:

     

    
      	
              (i)  

            	
              fairly
      present the financial position of the Business as of their respective
      dates and the results of operations of the Business for the periods
      indicated therein (except, with respect to interim monthly reports, for
      normal recurring year-end adjustments that, individually or in the
      aggregate,  would not be
material);

            

    

    

    
      	
              (ii)  

            	
              have
      been reviewed or compiled, as applicable, by Siebert & Associates,
      P.C. in accordance with the Statements and Standards for Accounting and
      Review Services issued by the American Institute of Certified Public
      Accountants based on generally accepted accounting principles applied on a
      consistent basis throughout the periods covered by the Financial
      Statements (“GAAP”); and

            

    

    

    
      	
              (iii)  

            	
              reflect
      all liabilities or obligations, whether accrued, absolute, contingent or
      otherwise, of the Seller that are Assumed Liabilities as required under
      GAAP consistently applied other than those liabilities incurred since
      January 31 2007, in the ordinary course of business consistent with past
      practice.

            

    

    

    (b) The
values at which the Inventories and accounts receivable are carried on the
Financial Statements are in accordance with GAAP and reflect normal and
consistent inventory valuation policies of the Seller.  The amounts
shown for the accounts receivable on the Financial Statements are collectible or
are net of adequate reserves reflected in the Financial Statements.

    

    3.07 Taxes.  Seller
represents and warrants as follows:

    

    (a) All Tax
Returns that are required to be filed (taking into account all extensions) on or
before the Closing Date for, by, on behalf of or with respect to the Seller,
including, but not limited to, those relating to the Business, the Transferred
Assets and the Assumed Liabilities, and those which include or should include
the Seller, the Business, the Transferred Assets or the Assumed Liabilities,
have been or will be timely filed with the appropriate foreign, federal, state
and local authorities on or before the Closing Date, and all Taxes shown to be
due and payable on such Tax Returns or related to such Tax Returns have been or
will be timely paid in full on or before the Closing Date;

    

    (b) All such
Tax Returns and the information and data contained therein have been or will be
properly and accurately compiled and completed in all material respects, fairly
present or will fairly present the information purported to be shown therein,
and reflect or will reflect all liabilities for Taxes for the periods covered by
such Tax Returns;

    

    (c) None of
such Tax Returns are now under audit or, to the Seller’s knowledge, examination
by any foreign, federal, state or local authority and there are no agreements,
waivers or other arrangements providing for an extension of time with respect to
the assessment or collection of any Tax or deficiency of any nature against the
Seller, the Business or the Transferred Assets, or with respect to any such Tax
Return, or any suits or other actions, proceedings, investigations or claims now
pending or threatened against the Seller, the Business or the Transferred Assets
with respect to any Tax, or any matters under discussion with any foreign,
federal, state or local authority relating to any Tax, or any claims for any
additional Tax asserted by any such authority;

    

    (d) All Taxes
due and owing from the Seller or assessed and due and owing against the Business
or the Transferred Assets on or before the Closing Date have been or will be
timely paid in full on or before the Closing Date;

    

    (e) The
Transferred Assets are not, and on the Closing Date will not be, subject to or
liable for any special assessments or similar types of impositions;

    

    (f) All
withholding Tax and Tax deposit requirements imposed on the Seller and
applicable to the Business for any and all periods prior to and including the
Closing Date have been or will be timely satisfied in full; and

    

    (g) The
Financial Statements reflect adequate provision by the Seller for the payment in
full of any and all unpaid Taxes which in any way may affect the Transferred
Assets or the Business for any and all periods or portions thereof ending on or
before the respective dates thereof.

    

    3.08 No Violations or
Litigation.  Seller represents and warrants to Buyer as
follows:

    

    (a) Seller is
currently not in material violation of, and the consummation of the transactions
contemplated hereby will not cause any violation of, any order of any
Governmental Entity or any law, ordinance, regulation, order, requirement,
statute, rule, permit, concession, grant, franchise, license or other
governmental authorization relating or applicable to the Seller, the Business or
to any of the Seller’s properties, assets or operations, including without
limitation, the Transferred Assets.

    

    (b) There is
no action, suit, claim, investigation or legal, administrative, arbitration or
other proceeding, or governmental investigation or examination, or any change in
any zoning or building ordinance pending or, to the Seller’s knowledge,
threatened against or affecting the Seller, the Business or any of the
Transferred Assets, at law or in equity, before or by any Governmental Entity
and, to Seller's knowledge, no basis exists for any such action, suit, claim,
investigation or proceeding.

    

    3.09 No Adverse Changes or
Events.  Other than as set forth on Schedule 3.09 to the
Disclosure Schedule, since January 31, 2007, the Business has been consistently
operated only in the ordinary course and there has not been:

    

    (a) any
adverse change or any occurrence, circumstance or combination thereof that might
reasonably be expected to have an adverse change in the financial condition,
assets, liabilities (contingent or otherwise), results of operations, business
or prospects of the Seller before or after the Closing Date;

    

    (b) any
damage, destruction or loss, whether or not covered by insurance, adversely
affecting the Transferred Assets or the Business having a replacement cost of
more than $5,000 for any single loss or $25,000 for all such
losses;

    

    (c) except
for ordinary salary increases and year end bonuses that have been disclosed in
writing to the Buyer at least fifteen (15) days prior to the Closing, any
increase in the compensation or rate of compensation or commissions or bonuses
payable or to become payable by the Seller to any Transferred Employee on or
after December 31, 2007, agent or representative that is not consistent with
past practice, any payment or accrual of, or commitment with respect to, any
bonus plan, vacation pay, sick leave, deferred compensation, insurance, pension,
salary continuation for disability or severance or termination arrangement that
is not consistent with past practice or any change or modification to any
severance arrangement or any agreement to increase the coverage or benefits
available under any employee benefit plan or arrangement;

    

    (d) any debt,
obligation, mortgage, security interest or liability incurred by the Seller, any
assumption, guarantee, endorsement or other responsibility by the Seller for the
liability or obligation of any other Person (whether absolute, accrued,
contingent or otherwise), or any engagement in any other transaction by the
Seller other than in the ordinary course of business;

    

    (e) any
mortgage, pledge or creation of any Lien with respect to any of the Transferred
Assets other than Permitted Liens;

    

    (f) any sale,
assignment, transfer or other disposition or lapse of any Proprietary Rights or
disclosure to any Person (other than employees of the Seller in the scope of
their employment) of any Proprietary Rights material to the
Business;

    

    (g) any write
up or write down in the value of any Equipment or Inventories;

    

    (h) any
cancellation or compromise of any material claims, or any waiver of any other
material rights relating to the Business, or any sale, transfer or other
disposition of any material properties or assets, real, personal or mixed,
tangible or intangible, of the Business (other than sales of Inventories in the
ordinary course of business);

    

    (i) any
change in the Seller’s method of accounting for financial, Tax or other
purposes;

    

    (j) any
material change in the customary methods used in operating the Business
(including the pricing practices) or any material change in the sales
operations, including but not limited to promptly paying or discharging current
liabilities;

    

    (k) any
commitment to make any capital expenditures in respect to the
Business;

    

    (l) instituted
or settled any legal proceeding;

    

    (m) any grant
of a license or sublicense of any rights under or with respect to any
Proprietary Information; or

    

    (n) any
settlement or compromise of any claim, action, suit, litigation, proceeding,
arbitration, investigation, audit or controversy relating to Taxes.

    

    3.10 Environmental
Matters.  Seller represents and warrants to Buyer as
follows:

    

    (a) Seller
has not caused or allowed the generation, use, treatment, storage, or disposal
of Hazardous Materials at any site or facility owned, leased or operated by the
Seller including but not limited to the Facilities or used in the Business
except in accordance with all applicable Environmental Laws and would not result
in any liability, contingent or otherwise, to the Buyer or its
affiliates;

    

    (b) the
Seller does not own or lease any real property, improvements or related assets
that form a part of the Transferred Assets or the Business that have been
subject to the release of any Hazardous Materials;

    

    (c) the
Seller has secured all Environmental Permits necessary to the conduct of the
Business and the operations and the Seller is in compliance with such
permits;

    

    (d) the
Seller has not received any notice concerning any proposal to amend, revoke or
replace any Environmental Permit, or requiring the issuance of any additional
Environmental Permit, and to the Seller’s knowledge no such proposal
exists;

    

    (e) the
Seller has not received inquiry or notice and, to its knowledge, has no reason
to suspect or believe it will receive inquiry or notice of any actual or
potential proceedings, claims, lawsuits or losses related to or arising under
any Environmental Law;

    

    (f) the
Seller is not currently operating or required to be operating under any
compliance order, schedule, decree or agreement, any consent decree, order or
agreement, and/or corrective action decree, order or agreement issued or entered
into under any federal, state or local statute, regulation or ordinance
regarding the environment and/or health or safety in the work
place;

    

    (g) the
Seller has not transported, arranged for the transportation of or disposed of
any substance in a manner that may lead to claims against the Buyer for clean-up
costs, remedial work, damages to natural resources or for personal injury
claims; and

    

    (h) Seller
has provided to Buyer all environmentally related audits, studies, reports,
analyses and results of investigations that have been performed with respect to
any currently or previously owned, leased or operated properties of Seller or of
the Business.

    

    3.11 Related Party
Transactions.  Except as specifically set out in this Agreement
or on Schedules 1.02
or 3.11 to the Disclosure Schedule, no employee, officer, director,
partner, member or shareholder of Seller, any member of his or her immediate
family or any of their respective Affiliates (i) owes any amount to Seller nor
does Seller owe any amount to or has Seller committed to make any loan or extend
or guarantee credit to or for the benefit of such persons, (ii) is involved in
any business arrangement or other relationship with Seller, (iii) owns any
property or right, tangible or intangible, that is used by Seller, (iv) has any
claim or cause of action against Seller or the Business, or (v) owns any direct
or indirect interest of any kind in, or controls or is a director, officer,
employee or partner of, or consultant to, or lender to or borrower from or has
the right to participate in the profits of, any Person which is a competitor,
supplier, customer, creditor or debtor of Seller or the Business.

    

    3.12 Undisclosed
Liabilities.  The Seller does not have any liabilities or
obligations of any nature, whether accrued, absolute, contingent, unliquidated,
civil, criminal or otherwise, and whether due or to become due, other than
liabilities that (a) are reflected or reserved against in the January 31, 2007
Balance Sheet, (b) are disclosed in any Schedule (or in any plan, instrument,
lease or agreement referred to therein) or Exhibit hereto, (c) are liabilities
incurred since January 31, 2007 in the ordinary course of business.

    

    3.13 Warranties, Product
Liability and Insurance.  Seller represents and warrants to
Buyer as follows:

    

    (a) Except
for warranties implied by law and the Seller’s customary general warranty for
goods sold as described on Schedule 3.13(a), the
Seller has not given or made any warranties in connection with the sale or
rental of goods or services, including, without limitation, warranties covering
the customer’s consequential damages.  To Seller's knowledge, there
are no facts or the occurrence of any event forming the basis of any present
claim against the Seller with respect to warranties relating to products
manufactured, sold or distributed by the Seller or services performed by or on
behalf of the Seller except any claim that would not individually or in the
aggregate exceed $10,000.  Seller has not sold any products or
delivered any services that included a warranty for a period longer than one
year.  To Seller's knowledge, Seller has not committed any act or
failed to commit any act which would result in, and there has been no occurrence
which would give rise to or form the basis of, any product liability or
liability for breach of warranty on the part of Buyer with respect to the
products designed, manufactured, assembled, repaired maintained, delivered sold
or installed or services rendered by or on behalf of Seller or the
Business.

    

    (b) To
Seller's knowledge, there is no state of facts or any event forming the basis of
any present claim against the Seller not fully covered by insurance, except for
deductibles and self-insurance retentions, for personal injury or property
damage alleged to be caused by products shipped or services rendered by or on
behalf of the Seller.

    

    (c) Seller
has insurance policies in full force and effect (i) for such amounts as are
sufficient for all legal requirements to which Seller is a party or by which
it’s bound and (b) which are in such amounts, with such deductibles and against
such risks and losses, as is reasonable for the Business, assets and properties
of Seller.  Set out in Schedule 3.13.(c) to
the Disclosure Schedule is a list of all insurance policies held by or
applicable to Seller.

    

    3.14 Employee
Matters.

    

    (a) There are
no collective bargaining or other labor union agreements to which the Seller is
a party or by which it is bound.  To Seller’s knowledge, neither
Seller nor the Business has encountered any labor union organizing activity or
had any actual or threatened employee strikes, work stoppages, slowdowns or
walkouts.

    

    (b) The
Seller does not contribute to or have an obligation to contribute to, and has
not at any time within six years prior to the Closing Date contributed to or had
an obligation to contribute to, a multi-employer plan within the meaning of
Section 3(37) of ERISA.

    

    (c) The
Seller does not have any defined benefit pension.  Seller does have
employee benefit plan(s) established pursuant to Section 401(k) of the Code and
such plan(s) has been maintained in all material respects in accordance with its
terms and the provisions of applicable law.  Seller does have a profit
sharing plan and such plan has been maintained in all material respects in
accordance with its terms and the provisions of applicable law.  Other
than the foregoing, Seller does not maintain any other employee benefit plan
subject to the Employee Retirement Income Security Act of 1974, as
amended.

    

    (d) No
lawsuit, complaint or investigation or governmental audit has been noticed,
initiated or filed with respect to any employee benefit plan.  The
Company has not incurred any liability to the PBGC or otherwise under
ERISA.  There has not been any reportable event as defined in ERISA
which would require the giving of notice or any event requiring the giving of
notice to be provided.

    

    (e) Schedule 3.14.(e) to
the Disclosure Schedule sets forth a complete and correct list of all employee
benefit plans and all other employee benefit arrangements or payroll practices
maintained by Seller or to which Seller contributed or is obligated to
contribute thereunder for current or former employees of the Seller or that
cover employees of Seller.  All items listed on Schedule 3.14.(e) to
the Disclosure Schedule have been maintained in all material respects in
accordance with their terms and the provisions of applicable law.

    

    (f) Any
individual who performs services for Seller and who is not treated as an
employee for federal income tax purposes by Seller is not an employee for such
purposes.

    

    3.15 Banks.  Schedule 3.15 to the
Disclosure Schedule contains a complete and correct list of (a) the names and
locations of all banks in which Seller has accounts or safe deposit boxes, (b)
the account numbers of all such accounts and (c) the names of all persons
authorized to draw thereon or to have access thereto.

    

    3.16 Customers and
Suppliers.  Since January 31, 2007, no material customer or
supplier of the Business has terminated its relationship with the Business or
has materially reduced or changed the pricing or has materially changed any
other terms of its business with the Business and no material customer or
supplier of the Business has notified Seller that it intends to terminate or
materially reduce or change the pricing or other terms of its business with the
Business.

    

    3.17 Executive
Status.  Shareholders acknowledge and represent that they are
and have been executive and management personnel of the Seller for many
years.  Shareholders acknowledge that the covenants contained in Sections 7.07 and
7.10 hereof are
a material element of this Agreement and that Buyer would not have entered into
this Agreement or purchased the Business or the Transferred Assets without the
Shareholders’ agreement to honor the provisions of Sections 7.07 and
7.10.

    

    3.18 Definition of
Knowledge.  For purposes of this Agreement and any document
delivered at Closing, whenever the phrase (i) "to the Seller's knowledge" or the
"knowledge" of the Seller or words of similar import are used, they shall be
deemed to mean and are limited to the actual knowledge of the directors and
officers of the Seller, upon Seller’s inquiry of such officers’ and directors’
actual knowledge, at the times indicated only, and not any implied, imputed or
constructive knowledge of such individual, the Seller or the
Shareholders.  Furthermore, it is understood and agreed that, except
as expressly provided herein (including, without limitation, as provided in
Article 10
hereof), none of the individuals named above shall, in any event or in any
capacity, have any personal liability in any manner whatsoever hereunder or
otherwise related to the transactions contemplated hereby.

    

    ARTICLE
4

    REPRESENTATIONS AND
WARRANTIES OF THE BUYER

    

    
      	
              The
      Buyer represents and warrants to the Seller and the Shareholders as
      follows:

            

    

    

    4.01 Corporate
Matters.  The Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of
Texas.  The Buyer has the requisite corporate power and authority to
enter into this Agreement and to perform its obligations under this
Agreement.  This Agreement has been duly authorized, executed and
delivered by the Buyer and is a legal, valid and binding obligation of the
Buyer, enforceable against the Buyer in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws from time to time in effect that
affect creditors’ rights generally and by legal and equitable limitations on the
availability of specific remedies.  The execution and delivery of this
Agreement and the other agreements and documents to be delivered by the Buyer,
the consummation of the transactions contemplated hereby and thereby and the
compliance with the provisions hereof and thereof, by the Buyer will not, with
or without the passage of time or the giving of notice or both, violate any
provision of, or constitute a default under, any contract or other agreement to
which the Buyer is a party or by which it is bound, conflict with its articles
of incorporation or bylaws, other than violations, defaults or conflicts that
would not materially and adversely affect the ability of the Buyer to consummate
the transactions provided for in this Agreement.

    

    4.02 Conflicts and
Litigation.  The execution, delivery and performance of this
Agreement and the other agreements and documents to be delivered by the Buyer to
the Seller and the Shareholders, the consummation of the transactions
contemplated hereby or thereby, and the compliance with the provisions hereof or
thereof, by the Buyer will not, with or without the passage of time or the
giving of notice or both violate any law, statute, ordinance, regulation,
judgment, writ, injunction, rule, decree, order or any other restriction of any
kind or character applicable to the Buyer or any of its respective properties or
assets.  There are no legal proceedings pending or, threatened that
are reasonably likely to prohibit, restrain or materially delay the ability of
Buyer to enter into this Agreement or consummate the transactions contemplated
hereby.

    

    ARTICLE
5

    ACCESS TO INFORMATION BY THE
BUYER

    

    5.01 Prior to
Closing.  Until the Closing and pursuant to the terms and
conditions of the Confidentiality Agreement executed by Seller and Buyer as of
January 4, 2008 (“the CA”), the Seller will furnish the Buyer and its employees,
officers, accountants, attorneys, agents, investment bankers and other
authorized representatives with all books, records, financial information,
contracts, and other data and information concerning the Business, commitments,
personnel and properties and facilities of the Seller as the Buyer shall from
time to time reasonably request and will afford the Buyer and its employees,
officers, accountants, attorneys, agents, investment bankers and other
authorized representatives reasonable access during normal business hours to the
Seller’s offices, properties, books, records, financial information, contracts
and documents (including Tax Returns filed and those in preparation) and will be
given the opportunity to ask questions of, and receive answers from,
representatives of the Seller with respect to the Business, the Transferred
Assets and the other properties of the Seller (“the Inspection”).  The
Inspection shall not include the Facilities and the inspection of the Facilities
shall be conducted as set out in the leases for the Facilities.  All
investigation on Seller's property or with employees of Seller must be conducted
in the presence of a Shareholder (each Shareholder shall use their good faith
efforts to be available as requested by Buyer) or with a Shareholder's prior
approval (not to be unreasonably withheld, delayed, denied or
conditioned).  No investigations by the Buyer or its employees,
representatives or agents shall reduce or otherwise affect the obligation or
liability of the Seller with respect to any representations, warranties,
covenants or agreements made herein or in any Exhibit, Schedule or other
certificate, instrument, agreement or document, including the Disclosure
Schedule, executed and delivered in connection with this
Agreement.  The Seller will cooperate with the Buyer and its
employees, officers, accountants, attorneys, agents and other authorized
representatives in the preparation of any documents or other materials that may
be required by any Governmental Entity.

    

    5.02 Public
Information.  Until the Closing or termination hereof, the
Buyer and the Seller will consult in advance on the necessity for, and the
timing and content of, any communications to be made to the public and to the
form and content of any application or report to be made to any Governmental
Entity that relates to the transactions contemplated by this Agreement, except
with respect to public announcements or disclosures in response to legal
requirements (including, without limitation, requirements under the Federal
securities laws).

    

    ARTICLE
6

    EMPLOYEE
MATTERS

    

    

    6.01 Hiring of Transferred
Employees.  The Buyer shall offer employment (on an “at will
basis”) to all of the Seller’s active hourly employees and other active salaried
employees as of the Closing (all individuals who accept such offer are
collectively, the “Transferred Employees”).  The Buyer shall not
assume any liabilities or obligations of the Seller with respect to its
employees, and the Buyer will have complete discretion as to the terms of
employment that are offered to the Transferred Employees.  Nothing
contained in this Section 6.01 is
intended to confer upon any of the Seller’s employees any right to continued
employment after the Closing Date.  Notwithstanding any other
provision of this Agreement, the parties hereto do not intend to create any
third-party beneficiary rights respecting any of the Seller’s employees or
former employees as a result of the provisions herein and specifically hereby
negate any such intention.

    

    6.02 Employee
Benefits.

    

    (a) Except as
set forth in Section
6.03 and otherwise provided herein, the Buyer shall not be liable or
obligated under any employee benefit plan or for any other employee benefits
that may have been established by the Seller for the Seller’s employees prior to
the Closing, and the Seller expressly acknowledges that it has sole liability
for all employee benefit costs accrued as of the Closing whether or not any or
all of such employees are subsequently hired by the Buyer.  Without
limiting the generality of the foregoing, the Seller acknowledges and agrees
that the Buyer does not assume the sponsorship of, the responsibility of
contributions to, or any liabilities in connection with any employee benefit
plan maintained by the Seller for active employees, retirees, former employees,
their beneficiaries or any other Person, including any employee pension benefit
plan within the meaning of ERISA, employee welfare plan within the meaning of
ERISA and any personnel policy, stock option plan, bonus or profit sharing plan
or arrangement, incentive award plan or arrangement, vacation policy, severance
pay plan, policy or agreement, deferred compensation agreement arrangement,
executive compensation or supplemental income arrangement, consulting agreement,
employment agreement and each other employee benefit plan, agreement,
arrangement, program, practice or understanding.

    

    (b) With
respect to the Transferred Employees the Seller will remain responsible for
medical expenses covered under its plans (i) actually incurred prior to the
Closing Date or (ii) actually incurred with respect to any hospitalization that
began prior to the Closing Date until such hospitalization ends (as required
under such plans), and the Buyer will be responsible for all other medical
expenses incurred on or after the Closing Date to the extent covered under its
plans without the application of any waiting period for coverage generally
applicable to newly hired employees.  To the fullest extent permitted
under its applicable policies of insurance and to the extent required by
applicable law, the Seller shall maintain medical, health, hospitalization,
life, travel and accident insurance coverage for the Transferred Employees in
effect for so long as Buyer shall request; provided, however, that Buyer shall be
responsible for all costs (if any) of maintaining such policies for all
applicable periods following the Closing Date.  Seller’s cost of such
insurance coverage from and after the Closing Date shall be borne by the Buyer
and, to the extent applicable, Buyer agrees to reimburse Seller for such costs
or expenses within thirty (30) days after receipt from Seller of proof of
payment of such costs or expenses.  The Seller shall cooperate with
the Buyer to provide continuity of such insurance coverage to the Transferred
Employees.  Set out in Schedule 6.02(b)
[this Schedule needs to be furnished] of the Disclosure Schedule is the list of
all employees, their salary or hourly rate (as applicable), annual vacation and
sick days and their outstanding balances in Seller’s 401(k) plan.

    

    6.03 Severance Benefits;
Employment Termination.  Buyer and Seller hereby agree that
Buyer shall assume Seller’s obligation to make COBRA Coverage (as hereinafter
defined) available to all of Seller’s qualified beneficiaries, as such term is
defined by COBRA (26 U.S.C. § 4980B(g)(1) and 29 U.S.C. § 1167(3)) (the “M+A
Qualified Beneficiaries”) in accordance with the provisions of COBRA (as
hereinafter defined) and, accordingly, Buyer shall cause its group health plan
to make COBRA Coverage available to the M+A Qualified
Beneficiaries.  For purposes of this Section, the term “COBRA
Coverage” means the health insurance coverage required to be offered pursuant to
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”), 26 U.S.C. §§ 4980B et seq., and 29 U.S.C. §§ 1162
–1167.  The Buyer agrees to provide severance benefits, only in
accordance with Buyer’s policies and procedures, to the Transferred
Employees.

    

    6.04 Reporting of
Data.  The Buyer and the Seller shall complete and furnish to
each other such other employee data as shall be reasonably required from time to
time for each party to perform and fulfill its obligations under this Article
6.  Seller and Buyer shall report on a predecessor/successor
basis as set forth under any IRS revenue procedure including the filing of Form
W-2 for each Transferred Employee.

    

    6.05 Employment Related
Claims.  The Seller agrees that the Seller and not the Buyer
shall be solely responsible for all liability, costs and expenses (including
attorneys’ fees) for all existing employment claims that have been filed by any
employee or former employee of the Seller prior to the Closing Date relating to
arbitrations, unfair labor practice charges, employment discrimination charges,
wrongful termination claims, workers’ compensation claims, any
employment-related tort claim or other claims or charges of or by employees of
the Seller, or any thereof filed after the Closing Date but arising as a result
of conditions, actions or events or series of actions or events which occurred
prior to the Closing Date.  The Buyer agrees that it shall be
responsible for all liability, costs and expenses (including attorneys’ fees)
for all employment claims that are filed by any Transferred Employee relating to
arbitrations, unfair labor practice charges, employment discrimination charges,
wrongful termination claims, workers’ compensation claims, any
employment-related tort claim or other claims or charges of or by the
Transferred Employees to the extent, but only to the extent, that the same
result from the employment relationship between the Buyer and the Transferred
Employee and conditions, actions or events or series of actions or events
occurring subsequent to the Closing Date.  Seller shall pay
Transferred Employees their accrued and unused vacation through the Closing
Date.  Effective as of the Closing Date, Seller shall cause the
tax-qualified 401(k) plans in which the Transferred Employees were eligible to
participate immediately prior to the Closing Date to fully vest such employees’
accrued benefit through the Closing Date thereunder.

    

    ARTICLE
7

    
      	
              ADDITIONAL
      AGREEMENTS

            

    

    

    7.01 Conduct of the
Business.  The Seller and the Shareholders (as applicable)
covenant and agree with the Buyer that from and after the Effective Date until
the Closing, except as expressly authorized by this Agreement or expressly
consented to in writing by the Buyer, the Seller and the Shareholders (as
applicable) shall, and to the extent the same would affect the Proprietary
Rights:

    

    (a) operate
the Business and the Transferred Assets only in the usual, regular and ordinary
course of business with a view to maintaining the goodwill that the Seller now
enjoys and, to the extent consistent with such operation, will use all
reasonable efforts to preserve intact its present business organization, keep
available the services of its employees and preserve its relationships with its
customers, suppliers, jobbers, distributors and other Persons having business
relations with it;

    

    (b) use all
reasonable efforts to maintain the Transferred Assets in a state of repair,
order and condition consistent with its ordinary course of business in
connection with the Business;

    

    (c) maintain
its books of account and records relating to the Business in the ordinary course
of business, in accordance with the Seller’s usual accounting practices applied
on a consistent basis;

    

    (d) comply in
all material respects with all statutes, laws, orders and regulations applicable
to it and to the conduct of the Business;

    

    (e) not sell,
assign, transfer, lease or otherwise dispose of any Proprietary Rights,
Equipment or any of the other Transferred Assets except for dispositions of
Inventories for value in the usual and ordinary course of business or other than
to the Buyer pursuant to the terms of this Agreement;

    

    (f) preserve
and maintain all rights that it now enjoys in and to the Proprietary Rights and
not sell, assign, transfer, lease or otherwise dispose of any Proprietary Rights
other than to the Buyer pursuant to the terms of this Agreement;

    

    (g) not
mortgage, pledge or otherwise create a security interest in any of the
Transferred Assets or permit there to be created or exist any Liens thereon
other than Permitted Liens;

    

    (h) not enter
into any contract, commitment or lease in relation to the Business that is out
of the ordinary course of the Business or, if effective on the date hereof,
would be required to be disclosed in Schedule 3.05(a) of
the Disclosure Schedule;

    

    (i) not amend
or modify any of the Contracts and Other Agreements disclosed in Schedule 3.05(a) of
the Disclosure Schedule or any other contract, commitment, lease or other
agreement that would, if entered into on the date hereof, be required to be
disclosed on any Schedule to this Agreement, including the Disclosure
Schedule;

    

    (j) not
consent to the termination of any of the Contracts and Other Agreements
disclosed in Schedule
3.05(a) of the Disclosure Schedule or waive any of the Seller’s rights
with respect thereto;

    

    (k) not grant
any increase in the compensation or rate of compensation or commissions or
bonuses payable to or severance obligations for any of employees or in any bonus
plan and not transfer or otherwise change any of the terms or conditions of
employment of any of the employees except the bonuses contemplated in Section
6.02;

    

    (l) not
permit any insurance policy naming it as a beneficiary or a loss payee relating
to the Business or the Transferred Assets to be canceled or terminated or any of
the coverage thereunder to lapse unless simultaneously with such termination or
cancellation replacement policies providing substantially the same coverage are
in full force and effect; and

    

    (m) pay when
due all accounts payable, all payments required by any of the Contracts and
Other Agreements, and all Taxes other than Taxes that are being contested in
good faith and for which adequate reserves against the Transferred Assets exist
and which would not result in a Lien being imposed on any of the Transferred
Assets.

    

    7.02 Information and
Consents.  During the period from the date of this Agreement to
the Closing Date, the Buyer and the Seller will promptly inform the other in
writing of (a) any claim, action or any proceeding commenced against such party
with respect to the transactions contemplated by this Agreement or any assets or
property of the Seller or the Business or (b) any other fact, change, condition,
circumstance, event or occurrence that has caused or is reasonably likely to
cause any representation or warranty in this Agreement made by the Seller or the
Shareholders to be untrue or inaccurate in any material
respect.  Seller shall use its reasonable efforts to obtain at the
earliest practicable date all consents, waivers, approvals and notices that are
required to consummate, or in connection with the transactions contemplated by
this Agreement.  All such consents, waivers, approvals and notices
shall be in a form and substance reasonably satisfactory to Buyer.

    

    7.03 Compliance.

    

    (a) Each of
Seller and the Shareholders shall use their commercially reasonable efforts (i)
to cause the obligations imposed upon it or them in this Agreement to be duly
complied with, and all conditions precedent to such obligations to be satisfied
and (ii) to obtain any and all consents, waivers, amendments, modifications,
approvals, authorizations, notations and licenses necessary to the consummation
of the transactions contemplated by this Agreement.

    

    (b) Except
for Permitted Liens or as otherwise specifically set out in this Agreement, the
Seller and the Shareholders shall cause all Liens on the Transferred Assets to
be released as of the Closing Date.

    

    7.04 Delivery of Corporate
Documents.  On the Closing Date, Seller shall deliver to the
Buyer all Documents and Other Papers relating to the Transferred Assets, the
Assumed Liabilities and the current and proposed operations of the Business
(other than Excluded Assets), including, without limitation, all files relating
to the Trade Payables, computer programs, files, disks reflecting any books or
records, documents or other papers, or other information or data relating to the
operation of the Business or the Transferred Assets or customer records and
sales history stored on any electronic media, including computers in its
possession.  The Seller, however, shall be entitled to retain the
historical books and records relating to the Business to the extent such books
and records are not necessary for the ongoing operations of the Business by the
Buyer.  The Seller agrees that so long as the corporation, accounting,
auditing and tax books, records (including work papers) and other books and
records relating to the Seller, the Business and the Transferred Assets, the
Transferred Employees and the Assumed Liabilities remain in existence and in the
possession of the Seller or its affiliates, the Buyer and its authorized
representatives shall have the right to inspect and, at the Buyer’s expense, to
copy the same at any time during regular business hours for any proper
purpose.  For a period of five (5) years following the Closing Date,
the Seller agrees that it will not destroy any of such books and records without
having first offered to deliver the same to the Buyer.

    

    7.05 Further
Assurances.  Prior to and on and after the Closing Date, Seller
and the Shareholders shall execute, acknowledge and deliver or cause to be
executed, acknowledged and delivered to the Buyer such bills of sale,
assignments and other instruments of transfer, assignment and conveyance, in
form and substance reasonably satisfactory to counsel for the Buyer, as shall be
necessary to vest in the Buyer all the right, title and interest in and to the
Transferred Assets free and clear of all Liens (including the release of all
Liens of record) and shall use its reasonable efforts to cause to be taken such
other action as the Buyer reasonably may require to more effectively consummate,
implement and carry into effect the transactions contemplated by this
Agreement.

    

    7.06 Cooperation After
Closing.

    

    (a) The
Seller, the Shareholders and the Buyer shall cooperate with each other after the
Closing hereunder in clearing the title to any of the Transferred Assets to the
Buyer pursuant hereto in the event that the Seller’s title to any such property,
as the case may be, as of the Closing Date, shall be defective, not marketable
or nonassignable.  In this connection, the Seller shall take all
commercially reasonable action, including, but not limited to, the furnishing of
documents and evidences of title and assistance in the preparation and trial of
any necessary litigation, to clear title to any such property, all of which
shall be at the expense of the Seller.

    

    (b) For the
greater of eight (8) years from the Closing Date and such period as may be
required by any statute, regulation or Governmental Entity or any then pending
litigation, the Buyer shall permit, the Seller and its representatives
reasonable access to the business records and files of the Seller that are
transferred to the Buyer in connection herewith in anticipation of, or
preparation for, existing or future litigation or any Tax audit which the Seller
or any of its affiliates is involved and which is related to the Business or the
Transferred Assets, during regular business hours and upon reasonable notice at
the Buyer’s principal places of business or at any location where such records
are stored; provided, however, that (i) any such access shall be had or done in
such a manner so as to not interfere with the normal conduct of the Business,
(ii) the Buyer shall not be required to provide access to any confidential
record or records, the disclosure of which would violate any governmental
statute or regulation or applicable confidentiality agreement with any Person,
and (iii) the Buyer shall not be required to provide access to any confidential
record or records, the disclosure of which would cause the Buyer or any of its
Affiliates to waive its attorney-client privilege or attorney work product
privilege, it being understood and agreed that the records delivered by the
Seller to the Buyer shall not be deemed to be restricted from the Seller
pursuant to either clause (ii) or (iii) above.  The Buyer shall also
provide the Seller with (i) reasonable access to each Facility for the purpose
of complying with applicable Environmental Laws provided that such access does
not interfere with the normal conduct of the Business and (ii) reasonable access
to the accounting records and schedules necessary for the preparation of
financial reports and tax returns for the year ended January 31, 2008, and for
the 2008 accounting period ending on the Closing Date.

    

    (c) For the
greater of eight (8) years from the Closing Date and such period as may be
required by any statute, regulation or Governmental Entity or any then pending
litigation, the Seller shall retain the general business records and files of
Seller and shall permit the Buyer and its representatives reasonable access to
the general business records and files of the Seller in anticipation of, or
preparation for, existing or future litigation or any Tax audit or other
reasonable purposed in which the Buyer or any of its affiliates is involved and
which is related to the Business or the Transferred Assets, during regular
business hours and upon reasonable notice at the Seller’s principal places of
business or at any location where such records are stored; provided, however,
that (i) any such access shall be had or done in such a manner so as to not
interfere with the normal conduct of the Seller’s business, (ii) the Seller
shall not be required to provide access to any confidential record or records,
the disclosure of which would violate any governmental statute or regulation or
applicable confidentiality agreement with any Person, and (iii) the Seller shall
not be required to provide access to any confidential record or records, the
disclosure of which would cause the Seller or any of its Affiliates to waive its
attorney-client privilege or attorney work product privilege.

    

    (d) The
Seller, if requested by the Buyer (and at Buyer’s expense), shall cooperate and
assist in preparing such financial statements of the Business that the Buyer may
reasonably require in order to permit Buyer to timely file any report required
by the Securities and Exchange Commission in accordance with the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder in
connection with the transactions contemplated thereby and to comply with any
other financial statement requirements with respect to the Business applicable
to Buyer under the Securities Exchange Act of 1934, as amended, the Securities
Act of 1933, as amended, and the rules and regulations
thereunder.  The Seller shall cause its accountant to provide the
Buyer with reasonable access to such firm’s work papers in support of the
Business.  The cost of such accounting work shall be borne by the
Buyer, but the Seller shall use its reasonable efforts to cause its accountant
to provide the Buyer with an estimate of its costs.  The Seller will
also cooperate with and assist the Buyer in preparing, and, if requested, shall
use reasonable efforts to cause its accountant to cooperate, at Buyer’s expense,
in preparing, such other financial statements for the Business as may be
specified by the Buyer.

    

    (e) In
furtherance of Sections 1.03(a) and
1.05(i) hereof, Seller shall enter into the Escrow Agreement, as defined
in Sections 8.03, and Seller shall redeem all of the Preferred Shares on or
before April 1, 2008.

    

    7.07 Covenants of Nondisclosure
of Proprietary Information.

    

    The
Seller and the Shareholders covenant and agree that, from and after the Closing
Date, they and their respective affiliates shall hold in confidence and will not
directly or indirectly at any time reveal, report, publish, disclose or transfer
to any Person other than the Buyer any of the Proprietary Information that is
not generally known to the public or utilize any of the Proprietary Information
for any purpose.  The Seller and the Shareholders hereby agree that,
upon the Closing and as between Buyer, Seller, the Shareholders and each of
their respective affiliates, Buyer shall have the sole right to use the name
“Rocky Mtn. Supply” or similar names and any service marks, trademarks, trade
names, d/b/a names, fictitious names, identifying symbols, logos, emblems or
signs containing or comprising the foregoing or otherwise used in the Business
and owned by Seller or the Shareholders (and Seller and the Shareholders shall
not, and shall not permit any of their respective affiliate to, use such name or
any variation or simulation thereof).  As soon as legally practicable
after the Closing (but not later than twenty (20) Business Days after the
Closing Date) Seller shall, and shall cause its affiliates to, remove any mark
from its legal name by appropriate legal proceedings in the jurisdiction of its
incorporation and each jurisdiction where such entity has registered to do
business.

    

    
      	
              Notwithstanding
      the foregoing, the Seller and its affiliates may disclose information that
      is (i) required to be disclosed by applicable State or federal tax or
      securities laws to the extent, and only to the extent, such laws require
      such disclosure and, to the extent practicable, the Seller provides the
      Buyer prior written notice of its intent to provide such disclosure and
      the general text of such disclosure, and (ii) required to be disclosed by
      final order of a court of competent jurisdiction; provided that, in the
      event Seller or such affiliate is served or threatened with litigation
      that would require the Seller or such affiliate to disclose such
      information, the Seller or such affiliate shall tender to the Buyer the
      opportunity to defend, at its cost, against such
    disclosure.

            

    

    

    (a) The
Seller acknowledges that all documents and objects containing or reflecting any
Proprietary Information, whether developed by the Seller or by someone else for
it or any of its affiliates, will after the Closing Date become the exclusive
property of the Buyer and be delivered to the Buyer.

    

    (b) Because
of the unique nature of the Proprietary Information, if any, the Seller
understands and agrees that the breach or anticipated breach of its or its
affiliates obligations under this Section 7.07 will
result in immediate and irreparable harm and injury to the Buyer and its
affiliates, for which it will not have an adequate remedy at law, and that the
Buyer and its affiliates and their successors and assigns shall be entitled to
an injunction, restraining order or other equitable relief to enjoin such breach
or anticipated breach and to seek any and all other legal and equitable remedies
to which they may be entitled.  In the event that Buyer were to seek
damages for any breach of this Section 7.07, the
portion of the consideration which is allocated by the parties to this covenant
shall not be considered a measure or limit on such damages. The Seller and the
Shareholder acknowledge that this covenant regarding Proprietary Information is
being provided as an inducement to the Buyer to acquire the Business and
Transferred Assets.  The parties agree that if any court of competent
jurisdiction determines that any relevant feature of this Section 7.07 is
determined to be unreasonable, arbitrary or against public policy then such
relevant feature which is determined by the court to be reasonable, not
arbitrary and not against public policy may be enforced against the applicable
party.

     

    7.08 Real
Property.  On or prior to the Closing Date, Seller shall obtain
and deliver to Buyer a Lease Termination Agreement, substantially in the form
attached hereto as Exhibit “F”, from
each of the lessors of the Facilities and memorializing the termination of the
respective leases for each of the respective Facilities as of the Closing Date
and the entry into new leases for such Facilities in substantially the form
attached hereto as Exhibit “C” (the
“Lease”), as of such date both upon such terms and conditions reasonably
acceptable to Buyer.

    

    7.09 Warranty
Claims.  With respect to any claims made pursuant to warranties
to third Persons in connection with products manufactured, sold or distributed
or services provided by the Seller prior to the Closing Date that relate to the
Business and that are covered by valid and existing warranties of the Seller,
the Buyer agrees to assume and pay for such claims to the extent, but only to
the extent, that the Buyer’s Damages with respect to all such claims do not
exceed in the aggregate $10,000.  Any claims in excess of such amount
shall remain part of the Retained Liabilities.  The Buyer agrees to
provide to Seller, at prices equal to Buyer’s out-of-pocket cost, the necessary
services so Seller can satisfy any claims made pursuant to warranties of third
Persons in connection with products manufactured, sold or distributed or
services provided by the Seller prior to the Closing Date that relate to the
Business and that are covered by valid and existing warranties of the Seller and
not assumed by Buyer pursuant to Section 7.09.  The foregoing
limitations, however, shall not be deemed in any way to limit the right of the
Buyer to seek indemnification from the Seller for any Damages in connection with
products manufactured, sold or distributed or services provided by the Seller
prior to the Closing Date to the extent the Buyer incurs any monetary liability
to any third Person with respect to such matters or is obligated to take any
action other than that expressly covered by this Section
7.09.

    

    7.10 Covenant Not to Compete With
the Business.  The Seller and the Shareholders covenant and
agree that, effective as of the Closing Date and for a period of five (5) years
thereafter, the Seller and the Shareholders shall not, without the consent of
the Buyer, directly or indirectly, (i) design, develop, market, produce,
manufacture or provide any product, good or service that competes with the
Business in Colorado, Nebraska and Wyoming, (ii) make any contact with, for the
purpose of transacting any business competitive to the Business, with any Person
which was a customer of Seller at any time in the five (5) years prior to the
Closing Date (“Company’s Customers”), (iii) attempt to direct or take away the
business or patronage of any of the Company’s Customers or suppliers, (iv)
attempt to have any dealings with the Company’s Customers or suppliers for the
purpose of attempting to secure such customers or suppliers or their patronage
in competition with the Business, (v) solicit, hire away or attempt to solicit
or hire away to any firm or entity engaged in the Business, any person presently
employed by Seller, (vi) engage in the Business, (vii) interfere with or molest
the business, trade, goodwill, suppliers or customers of the Seller, (viii)
directly or indirectly, own, invest in, manage, operate, control, be employed
by, consult with or be an agent for, engage  or participate in the
ownership, management, operation, control or any other engagement of, any
business, whether in corporate, proprietorship or partnership form or any other
business form, engage in the business of distribution of industrial products or
in any business that competes with the Business, or (ix) use for Seller’s or
Shareholders’ own benefit or the benefit of another or disclose, disseminate, or
distribute to another, any trade secrets of the Business.  The Seller
and the Shareholders acknowledge that a remedy at law for any breach or
attempted breach of this Section 7.10 will be
inadequate and they further agree that any breach of this Section 7.10 will
result in irreparable harm to the Business and to the Buyer and in addition to
any other remedy that may be available to Buyer, Buyer shall be entitled to
specific performance and injunctive and other equitable relief in case of any
such breach or attempted breach.  The Seller and the Shareholders
acknowledge that this covenant not to compete is being provided as an inducement
to the Buyer to acquire the Business and the Transferred Assets and that this
Section 7.10
contains reasonable limitations as to time, geographical area and scope of
activity to be restrained that do not impose a greater restraint than is
necessary to protect the goodwill or other business interest of the
Buyer.  Whenever possible, each provision of this Section 7.10 shall be
interpreted in such a manner as to be effective and valid under applicable law
but if any provision of this Section 7.10 shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remaining provisions of this Section
7.10.  If any provision of this Section 7.10 shall,
for any reason, be judged by any court of competent jurisdiction to be invalid
or unenforceable, such judgment shall not affect, impair or invalidate the
remainder of this Section 7.10 but
shall be confined in its operation to the provision of this Section 7.10 directly
involved in the controversy in which such judgment shall have been
rendered.  In the event that the provisions of this Section 7.10 should
ever be deemed to exceed the time or geographic limitations permitted by
applicable laws, then such provision shall be reformed to the maximum time or
geographic limitations permitted by applicable law.

    

    7.11 Continuation of Business by
the Buyer.  Nothing in this Section 7.11, in any
other provision of this Agreement, in any Exhibit or Section hereto, or in any
agreement, instrument, or other document executed or delivered in connection
with this Agreement shall require the Buyer to continue its business or
operations or to manage and operate the Business with any duty or standard of
care to the Seller and the Shareholders.  The Seller and the
Shareholders acknowledge and agree that the Buyer in its sole discretion may
continue, manage, modify or discontinue the operations of the Business,
liquidate or otherwise change or cease its operations.

    

    ARTICLE
8

    CONDITIONS TO THE BUYER’S
OBLIGATION

    TO CONSUMMATE THE
TRANSACTIONS

    

    
      	
              The
      obligation of the Buyer to purchase the Transferred Assets, to assume the
      Assumed Liabilities and to consummate the transactions contemplated by
      this Agreement is, at the option of the Buyer, subject to the satisfaction
      on or before the Closing Date of the fulfillment of the conditions set
      forth below, any of which may be waived by the Buyer in
      writing.

            

    

    

    8.01 Representations, Warranties
and Covenants.  The representations and warranties of the
Seller and the Shareholders contained in this Agreement qualified as to
materiality (including as to any Material Adverse Effect) shall be true, correct
and complete in all respects, and those not so qualified shall be true, correct
and complete in all material respects, on and as of the Closing Date with the
same force and effect as though such representations and warranties had been
made or given on and as of such date; each and all of the agreements and
covenants of the Seller and the Shareholders to be performed or complied with by
it on or before the Closing Date pursuant to this Agreement shall have been
materially performed or complied with and Buyer shall have received copies of
such documents evidencing such performance as Buyer may reasonably request; and
Seller shall have delivered to the Buyer a certificate, in a form reasonably
acceptable to Buyer, signed by its President and its Treasurer, dated the
Closing Date, to all such effects.

    

    8.02 Good Standing and Corporate
Authorizations.  The Seller shall have delivered to the Buyer
certificates issued by appropriate Governmental Entities evidencing the good
standing of the Seller, as of a date not more than ten (10) calendar days prior
to the Closing Date, in the State of Colorado and in the states or commonwealths
in which Seller is qualified to do business as a foreign
corporation.  Seller shall have delivered to Buyer a certified copy of
the resolutions adopted by Seller’s board of directors authorizing the
execution, delivery and performance of this Agreement and the resolutions duly
adopted by the Shareholders approving the performance of this Agreement and the
consummation of the transactions contemplated hereby.

    

    8.03 Closing
Instruments.  The Seller and the Shareholders, as applicable,
shall have executed, acknowledged and delivered to the Buyer (i) the General
Conveyance, Transfer, Assignment and Assumption, in substantially the form
attached hereto as Exhibit “D”, (ii) the
Goodwill Purchase Agreement, (iii) the Employment Agreements, and (iv) any other
documents necessary in the reasonable opinion of counsel to Buyer to transfer
and assign the Transferred Assets to Buyer.  The Shareholders shall
have executed and delivered to Buyer a separate purchase agreement pursuant to
which Buyer shall effect a separate purchase of the goodwill and intangible
assets of the Shareholders associated with the Business, contemporaneously with
the Closing hereunder (the “Goodwill Purchase Agreement” in the form and
substance attached hereto as Exhibit “I”) and the
Employment Agreements.  The Seller and the escrow agent under the
Escrow Agreement (in form and substance attached hereto as Exhibit “G, the
“Escrow Agreement”) shall have executed and delivered to Buyer such agreement
and the Escrow Agreement shall be in full force and effect as of the
Closing.

    

    8.04 Amendment to Articles of
Incorporation.  The Seller shall have prepared, obtained all
necessary corporate authorizations, executed and delivered to the Buyer
documents, in form and substance reasonably satisfactory to counsel for the
Buyer, sufficient to change the Seller’s corporate name to one bearing no
resemblance to the Seller’s current corporate name and sufficient to assign and
insure to the Buyer the continuing right to use the present corporate name of
the Seller and all variations thereof.

    

    8.05 No
Litigation.

    

    (a) No
preliminary or permanent injunction or other order of any court or other
Governmental Entity shall be in effect nor shall there be in effect any statute,
rule, regulation or executive order promulgated or enacted by any Governmental
Entity that, in any such case, prevents the consummation of the transactions
contemplated by this Agreement.

    

    (b) No suit,
action, claim, proceeding or investigation before any Governmental Entity shall
have been commenced or threatened seeking to prevent the consummation of the
transactions contemplated by this Agreement.

    

    8.06 Employment
Agreements.  Each of the Shareholders shall have executed and
delivered to Buyer an employment agreement with Buyer in the form attached
hereto as Exhibit
“E” (the “Employment Agreements”).

    

    8.07 Leases.  The
lessors for each of the Facilities shall have executed and delivered to Buyer
(i) the landlord’s letter as provided in Section 7.08 hereof
and (ii) the Lease containing the specific terms for each such Facility as set
forth on Schedule
8.07 to the Disclosure Schedule.

    

    8.08 Other Legal
Matters.  All Exhibits, Schedules, certificates, documents and
legal matters in connection with this Agreement and the transactions
contemplated hereby shall be in the forms required by this
Agreement.

    

    8.09 Licenses, Consents and
Approvals by the Buyer.  Other than as contemplated by Section 8.07, the
Buyer shall have received each of the licenses, consents, approvals and other
authorizations from Governmental Entities and third parties that are set forth
on Schedule
8.09 hereto.

    

    8.10 Release of
Liens.  Seller shall have delivered to the Buyer releases of
all Liens, other than Permitted Liens, on the Transferred Assets in form and
substance reasonably satisfactory to the Buyer.

    

    ARTICLE
9

    CONDITIONS TO THE SELLER’S
OBLIGATION

    TO CONSUMMATE THE
TRANSACTIONS

    

    
      	
              The
      obligation of the Seller to transfer the Transferred Assets as
      contemplated hereby is, at the option of the Seller, subject to the
      satisfaction on or before the Closing Date of the conditions set forth
      below, any of which may be waived by the Seller in
  writing.

            

    

    

    9.01 Representations, Warranties
and Covenants.  The representations and warranties of the Buyer
contained in this Agreement qualified as to materiality shall be true, correct
and complete in all respects, and those not so qualified shall be true, correct
and complete in all material respects, on and as of the Closing Date with the
same force and effect as though such representations and warranties had been
made or given on and as of such date, and the Buyer shall have performed and
complied in all material respects with all covenants, obligations and agreements
required in this Agreement to be performed or complied with by Buyer on or prior
to the Closing Date.  Buyer will deliver to the Seller a certificate
signed by its President dated the Closing Date, to all such effect.

    

    9.02 Receipt of the Purchase
Price.  The Seller shall have received the Seller Cash Payment
and the Seller Note and each Shareholder shall have received his applicable
executed Shareholders’ Note.  The Shareholders shall have received the
INDIVIDUAL GOODWILL PURCHASE PRICE as set out in the Goodwill Purchase
Agreement,  contemporaneously with the Closing hereunder.

    

    9.03 Licenses, Consents and
Approvals.  The Seller shall have received each of the
licenses, consents, approvals and other authorizations from Governmental
Entities necessary or appropriate for the Seller to consummate the transactions
contemplated by this Agreement.

    

    9.04 No
Litigation.

    

    (a) No
preliminary or permanent injunction or other order of any court or other
Governmental Entity shall be in effect nor shall there be any statute, rule,
regulation or executive order promulgated or enacted by any Governmental Entity
that, in any such case, prevents the consummation of the transactions
contemplated by this Agreement.

    

    (b) No suit,
action, claim, proceeding or investigation before any court or other
Governmental Entity shall have been commenced or threatened seeking to prevent
the consummation of the transactions contemplated by this
Agreement.

    

    9.05 Closing
Instruments.  The Buyer shall have executed, acknowledged and
delivered to the Seller or the Shareholders, as applicable, (i) the General
Conveyance, Transfer, Assignment and Assumption, in substantially the form
attached hereto as Exhibit “D”, (ii)the
Seller’s Note, and (iii) any other documents, in the reasonable opinion of
counsel to Seller, regarding the assumption of the Assumed Liabilities by
Buyer.  Buyer shall have executed and delivered to each of the
Shareholders, respectively, (i) the Goodwill Purchase Agreement, (ii) the
Shareholders’ Notes and (iii) the Employment Agreements.  The Seller,
Buyer and the escrow agent under the Escrow Agreement shall have executed and
delivered said agreement and the Escrow Agreement shall be in full force and
effect as of the Closing.

    

    9.06 Other Legal
Matters.  All Exhibits, Schedules, certificates, documents and
legal matters in connection with this Agreement and the transactions
contemplated hereby shall be in the forms required by this
Agreement.

    

    ARTICLE
10

    INDEMNIFICATION

    

    10.01 Indemnification by the
Seller and the Shareholders.  Except as otherwise limited by
this Article 10
and Article 11
hereof, the Seller and the Shareholders (in the event of a Closing) agree to
indemnify, defend and hold the Buyer and each of its officers, directors,
stockholders, and controlling Persons and their respective representatives,
successors and assigns harmless from and against and in respect of Damages
actually suffered, incurred or realized by such party (collectively, “General
Buyer Losses”), arising out of or resulting from or relating to:

    

    (a) any
misrepresentation or breach of warranty made by the Seller and/or the
Shareholders in this Agreement or any misrepresentation in or breach of warranty
made by the Seller and/or the Shareholders under any other agreement,
certificate, Schedule, Exhibit or writing delivered to the Buyer pursuant to
this Agreement, including but not limited to the Disclosure
Schedule;

     

    (b) any
breach of any covenant or other agreement made or undertaken by the Seller
and/or the Shareholders in this Agreement or in any other agreement,
certificate, Schedule, Exhibit or writing delivered to the Buyer pursuant to
this Agreement, including the Disclosure Schedule;

    

    (c) any
Retained Liability or Excluded Asset; or

    

    (d) any fees,
commissions or like payments by any Person having acted or claiming to have
acted, directly or indirectly, as a broker, finder or financial advisor for
Seller and/or the Shareholders in connection with the transactions contemplated
by this Agreement.

    

    10.02 Intentionally
Omitted

    

    10.03 Indemnification by the
Buyer.  Except as otherwise limited by this Article 10 and Article 11 hereof,
the Buyer agrees to indemnify, defend and hold the Seller and each of its
officers, directors, employees, agents, stockholders and controlling Persons and
its successors and assigns harmless from and against and in respect of Damages
actually suffered, incurred or realized by such party (collectively, “Seller
Losses”), arising out of or resulting from:

    

    (a) any
misrepresentation or breach of warranty made by the Buyer in this Agreement or
any misrepresentation in or breach of warranty under any other agreement,
certificate, Schedule, Exhibit or writing delivered to the Seller pursuant to
this Agreement;

     

    (b) any
breach of any covenant or other agreement made or undertaken by the Buyer in
this Agreement or in any other agreement, certificate, Schedule, Exhibit or
writing delivered by the Buyer to the Seller pursuant to this Agreement,
including the Disclosure Schedule

    

    (c) any
Assumed Liability or the Buyer’s operation of the Business or the Transferred
Assets or the use of the Facilities after the Closing Date; provided, however,
that the Buyer shall in no event be liable for or be required to provide
indemnity pursuant to this Section 10.03 for the
Buyer’s failure to detect or remedy any Environmental Liabilities arising on or
prior to the Closing Date;

    

    (d) any fees,
commissions or like payments by any Person having acted or claiming to have
acted, directly or indirectly, as a broker, finder or financial advisor for
Buyer in connection with the transactions contemplated by this Agreement;
or

    

    (e) any
actions taken by Seller in compliance with the requirements of Sections 1.01(b)
and 7.06(e).

    

    10.04 Procedure.  All
claims for indemnification under this Article 10 shall be
asserted and resolved as follows:

    

    (a) An
Indemnitee shall promptly give the Indemnitor notice of any matter which an
Indemnitee has determined has given or could give rise to a right of
indemnification under this Agreement, stating the amount of the Loss, if known,
and method of computation thereof, all with reasonable particularity, and
stating with particularity the nature of such matter.  Failure to
provide such notice shall not affect the right of the Indemnitee to
indemnification except to the extent such failure shall have resulted in
liability to the Indemnitor that could have been actually avoided had such
notice been provided within such required time period.

    

    (b) The
obligations and liabilities of an Indemnitor under this Article 10 with
respect to Losses arising from claims of any third party that are subject to the
indemnification provided for in this Article 10 (“Third
Party Claims”) shall be governed by and contingent upon the following additional
terms and conditions: if an Indemnitee shall receive notice of any Third Party
Claim, the Indemnitee shall give the Indemnitor prompt notice of such Third
Party Claim and the Indemnitor may, at its option, assume and control the
defense of such Third Party Claim at the Indemnitor’s expense and through
counsel of the Indemnitor’s choice reasonably acceptable to
Indemnitee.  In the event the Indemnitor assumes the defense against
any such Third Party Claim as provided above, the Indemnitee shall have the
right to participate at its own expense in the defense of such asserted
liability, shall cooperate with the Indemnitor in such defense and will attempt
to make available on a reasonable basis to the Indemnitor all witnesses,
pertinent records, materials and information in its possession or under its
control relating thereto as is reasonably required by the
Indemnitor.  In the event the Indemnitor does not elect to conduct the
defense against any such Third Party Claim, the Indemnitor shall pay all
reasonable costs and expenses of such defense as incurred and shall cooperate
with the Indemnitee (and be entitled to participate) in such defense and attempt
to make available to it on a reasonable basis all such witnesses, records,
materials and information in its possession or under its control relating
thereto as is reasonably required by the Indemnitee.  Except for the
settlement of a Third Party Claim that involves the payment of money which
Indemnitor shall pay and only and for which the Indemnitee is totally
indemnified by the Indemnitor, no Third Party Claim may be settled without the
written consent of the Indemnitee.

    

    10.05 Payment.  Payment
of any amounts due pursuant to this Article 10 shall be
made within ten (10) Business Days after notice of a final determination of any
Third Party Claims is sent by the Indemnitee.

    

    10.06 Failure to Pay
Indemnification.  If and to the extent the Indemnitee shall
make written demand upon the Indemnitor for indemnification pursuant to this
Article 10 and
the Indemnitor shall refuse or fail to pay in full within ten (10) Business Days
of such written demand the amounts demanded pursuant hereto and in accordance
herewith, then the Indemnitee may utilize any legal or equitable remedy to
collect from the Indemnitor the amount of its Losses.  Nothing
contained herein is intended to limit or constrain the Indemnitee’s rights
against the Indemnitor for indemnity, the remedies herein being cumulative and
in addition to all other rights and remedies of the
Indemnitee.  Notwithstanding the foregoing, while any amount of the
Seller Note and/or the Shareholders’ Notes remain unpaid, Buyer will, upon an
occurrence of an indemnification obligation owing to Buyer under this Agreement,
as determined by a final order in any adjudication, have the right to set-off
and apply any payment that otherwise would be paid in respect to the Seller Note
and/or the Shareholders’ Notes to the payment of any indemnification
obligation.

    

    10.07 Adjustment of
Liability.  The amount which an Indemnitee shall be entitled to
receive from an Indemnitor with respect to any indemnifiable Loss under this
Article 10
shall be net of any insurance recovery by the Indemnitee on account of such Loss
from an unaffiliated party.

    

    10.08 Limitations of
Indemnity.

    

    (a) Notwithstanding
anything to the contrary contained herein, (i) none of Seller, the Shareholders
or the Buyer shall make a payment under Section 10.01(a) or
Section
10.03(a), as applicable, unless and until the aggregate amount to be paid
by Seller and the Shareholders, on the one hand, or the Buyer, on the other
hand, in the absence of this clause, exceeds $25,000 (the "Basket"), in which
event all such amounts shall be paid and (ii) in no event shall the aggregate
liability of Seller and the Shareholders, on the one hand, or Buyer, on the
other hand, under Section 10.01(a) or
Section
10.03(a), as applicable, exceed $1,000,000 (the "Cap"); provided,
however, that (x) the Cap shall not apply to any liability arising out of,
resulting from or relating to the actual fraud (excluding constructive
knowledge, negligence or recklessness) of Seller and/or the Shareholders and (y)
neither the Basket nor the Cap limitation shall apply in respect of
indemnification under Sections 10.01(a) or
­10.03(a)
for any misrepresentation or breach of warranty as set forth in Sections 3.01, 3.02(a), 3.02(b), the first
sentence of each of 3.04(b), 3.04(d), 3.04(e) and 3.04(f), the second
sentence of 3.04(c), 3.07, and 4.01.

     

    (b) For
purposes of calculating the Damages hereunder arising out of, resulting from or
relating to any misrepresentations or breaches of warranties or any breach of
any covenants or agreements, any materiality or Material Adverse Effect
qualifications in the representations, warranties, covenants and agreements
shall be disregarded.

     

    (c) The
remedies provided in this Article 10 shall
constitute the sole and exclusive source of satisfaction of Buyer with respect
to any Damages arising after the Closing, and Buyer shall not have any other
remedies against Seller except as specifically otherwise provided
herein.

    

    ARTICLE
11

    NATURE OF STATEMENTS AND
SURVIVAL OF COVENANTS,

    REPRESENTATIONS, WARRANTIES
AND AGREEMENTS

    

    
      	
              The
      representations and warranties of the parties to this Agreement shall
      survive the Closing Date and shall remain in full force and effect for a
      period of eighteen (18) months {need DXP’s approval of this requested
      change} following the Closing Date (except that (i) the representations
      and warranties set forth in Sections 3.01,
      3.02(a),
      3.02(b),
      the first sentence of each of 3.04(b), 3.04(d), 3.04(e) and
      3.04(f),
      the second sentence of 3.04(c) and
      4.01
      shall survive the Closing Date without limitation and (ii) the
      representations and warranties contained in Section 3.07
      hereof shall survive the Closing Date and shall not terminate until twenty
      (20) days after the expiration of all applicable statutes of limitations
      therefor (including any and all extensions thereof)).  The
      respective period during which the representations and warranties shall
      survive being referred to herein with respect to such representations and
      warranties as the “Survival Period”, and the Survival Period shall further
      be effective with respect to any respective representation or warranty
      (and a claim for indemnification under Article 10
      hereof may be made thereon) if a written notice asserting the claim shall
      have been duly given in accordance with Article 10
      hereof within the Survival Period with respect to such
      matter.  Any claim for indemnification made during the Survival
      Period shall be valid and the representations and warranties relating
      thereto shall remain in effect for purposes of such indemnification not
      withstanding such claim may not be resolved within the Survival
      Period.  All representations, warranties and covenants and
      agreements made by the parties shall not be affected by any investigation
      heretofore or hereafter made by and on behalf of any of them and shall not
      be deemed merged into any instruments or agreements delivered in
      connection with the Closing or otherwise in connection with the
      transactions contemplated hereby.

            

    

    

    ARTICLE
12

    EXPENSES

    

    
      	
              Except
      as otherwise set forth herein, and whether or not the transactions
      contemplated by this Agreement shall be consummated, each party agrees to
      pay, without right of reimbursement from any other party, the costs
      incurred by such party incident to the preparation and execution of this
      Agreement and performance of its obligations hereunder, including without
      limitation the fees and disbursements of legal counsel, accountants and
      consultants employed by such party in connection with the transactions
      contemplated by this Agreement.

            

    

    

    ARTICLE
13

    TERMINATION

    

    13.01 Best Efforts to Satisfy
Conditions.  Subject to the provisions of this Agreement, the
Buyer, the Shareholders and the Seller agree to use their good faith efforts to
bring about the satisfaction of their respective conditions specified in Articles 8 and 9
hereof.

    

    13.02 Termination.  The
obligation to close the transactions contemplated by this Agreement may be
terminated by:

    

    (a) mutual
agreement of the Buyer and the Seller;

    

    (b) the
Buyer, if a material default shall be made in the observance or in the due and
timely performance by the Seller or the Shareholders of any agreements and
covenants of the Seller or the Shareholders  herein contained, or if
there shall have been a material breach by the Seller or the Shareholders of any
of the warranties and representations of the Seller or the Shareholders herein
contained, and such default or breach has not been cured (if capable of cure) or
has not been waived within 10 days after notice thereof;

    

    (c) the
Seller, if a material default shall be made by the Buyer in the observance or in
the due and timely performance by the Buyer of any agreements and covenants of
the Buyer herein contained, or if there shall have been a material breach by the
Buyer of any of the warranties and representations of the Buyer herein
contained, and such default or breach has not been cured (if capable of cure) or
has not been waived within 10 days after notice thereof; or

    

    (d) the Buyer
or the Seller (provided the terminating party has not materially breached any of
its agreements, covenants or representations and warranties) if the Closing
shall not have occurred on or before February 1, 2008.

    

    13.03 Liability Upon
Termination.  If the obligation to close the transactions
contemplated by this Agreement is terminated pursuant to Section 13.02(a) or
(d), then this Agreement shall, forthwith become null and void and there
shall not be any liability or obligation with respect to the terminated
provisions of this Agreement on the part of the Seller or the
Buyer.  If this Agreement is terminated pursuant to Section 13.02(b) or
(c), then the terminating party’s sole and exclusive remedy shall be able
to either (i) specifically enforce the terms of this Agreement or (ii) the
terminating party shall be entitled to receive all filing and other fees paid by
the terminating party and all out-of-pocket expenses incurred by the terminating
party including but not limited to the fees and expenses of any attorney or
other adviser of the terminating party which in no event shall exceed $150,000;
provided in no event shall either Shareholder have any personal liability to
Buyer prior to the Closing.

    

    13.04 Notice of
Termination.  The parties hereto may exercise their respective
rights of termination under this Article 13 only by
delivering written notice to that effect to the other party or parties, and such
notice is received on or before the Closing Date.

    

    ARTICLE
14

    DEFINITIONS OF CERTAIN
TERMS

    

    
      	
              In
      addition to terms defined elsewhere in this Agreement, the following terms
      shall have the meanings assigned to them herein, unless the context
      otherwise indicates, both for purposes of this Agreement and all Exhibits
      and Schedules hereto:

            

    

    

    14.01 Intentionally
Omitted.

    

    14.02 Intentionally
Omitted.

    

    14.03 “Agreement” shall mean this
Asset Purchase Agreement between the Seller, the Buyer and the Shareholders, as
amended from time to time by the parties hereto.

    

    14.04 “Assumed Liabilities” shall
have the meaning given such term in Section 1.04
hereof.

    

    14.05 “Business” shall mean the
existing businesses and operations of the Seller including, but not limited to
the purchase and sale of bearings, power transmission, conveyor belting, rubber
products and material handling products for industrial, agricultural and OEM
needs.

    

    14.06 “Business Day” shall mean any
day other than a Saturday, Sunday or any other day on which nationally banking
institutions in the State of Texas or Colorado are authorized by law to
close.

    

    14.07 “Buyer” shall mean DXP
Enterprises, Inc., a Texas corporation.

    

    14.08 “Closing” shall mean the
transfer by the Seller to the Buyer of the Transferred Assets, the assumption by
the Buyer of the Assumed Liabilities and the transfer by the Buyer to the Seller
of the other considerations set forth herein, which shall all be deemed to have
occurred on the Closing Date.

    

    14.09 “Closing Date” shall mean the
time and date of the Closing as specified in Article 2
hereof.

    

    14.10 “Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time.

    

    14.11 “Contracts and Other
Agreements” shall mean all purchase orders, leases of equipment,
contracts, agreements, understandings, indentures, notes, bonds, loans,
instruments, leases (including of real property), mortgages, franchises,
licenses, commitments or other arrangements, understandings, undertakings,
obligations, or other engagements whether express or implied, oral or written,
to which the Seller is a party or bound.

    

    14.12 Intentionally
Omitted.

    

    14.13 “Damages” shall mean any and
all liabilities, losses, damages, demands, assessments, claims, costs,
obligations, deficiencies, judgments and expenses (excluding incidental and
consequential damages), including interest, awards, judgments, penalties,
settlements, fines, claims, suits, actions, causes of action, assessments,
awards, costs of remediation, diminutions in value, costs and expenses incurred
in connection with investigating and defending any claims or causes of action
(including, without limitation, attorneys’ fees and expenses and all fees and
expenses of consultants and other professionals).

    

    14.14 “Disclosure Schedule” shall
mean the disclosure schedule of even date delivered to the Buyer.

    

    14.15 “Documents and Other Papers”
shall mean and include any document, paper, book, report, record, tape,
photograph, budget, forecast, ledger, journal, customer list, supplier list,
regulatory filings, operating data, plans, technical documentation, marketing
documentation, agreement, instrument, certificate, writing, notice, consent,
affidavit, letter, telegram, telex, statement, file, computer disk or file or
program, microfilm, microfiche or other document in electronic format, schedule,
exhibit or any other paper or record whatsoever.

    

    14.16 “Employment Agreements” shall
have the meaning given such term in Section 8.06
hereof.

    

    14.17 “Environmental Laws” shall
mean all federal, state, or municipal laws, rules, regulations, statutes,
ordinances, or orders of any Governmental Entity relating to (a) the control of
any potential pollutant or protection of the air, water, or land, (b) solid,
gaseous or liquid waste generation, handling, treatment, storage, disposal or
transportation and (c) exposure to hazardous, toxic or other substances alleged
to be harmful.  “Environmental Laws” shall include, but not be limited
to, the Clean Air Act, 42 U.S.C. § 7401 et seq., the Clean Water Act,
33  U.S.C. § 1251 et seq., the Resource Conservation Recovery Act
(“RCRA”), 42 U.S.C. § 6901 et seq., the Superfund Amendments and Reauthorization
Act, 42 U.S.C. § 11001, et seq., the Toxic Substances Control Act, 15
U.S.C. § 2601 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. App
& 1801 et seq., the Safe Drinking Water Act, 42 U.S.C. § 300f et seq. and
the Comprehensive Environmental Response, Compensation and Liability Act
(“CERCLA”), 42 U.S.C. § 9601 et seq.  The term “Environmental
Laws” shall also include all state, local and municipal laws, rules,
regulations, statutes, ordinances and orders dealing with the same subject
matter or promulgated by any governmental or quasi-governmental agency
thereunder or to carry out the purposes of any federal, state, local and
municipal law.

    

    14.18 “Environmental Liabilities”
shall mean any and all liabilities, responsibilities, claims, suits, losses,
costs (including remedial, removal, response, abatement, clean-up,
investigative, and/or monitoring costs and any other related costs and
expenses), other causes of action recognized now or at any later time, damages,
settlements, expenses, charges, assessments, liens, penalties, fines,
pre-judgment and post-judgment interest, attorney’s fees and other legal fees,
costs of experts, consultants, investigations and feasibility studies, sanctions
(a) incurred as a result of any agreement, claim, demand, order, notice, or
responsibility, directive (including directives embodied in Environmental Laws),
injunction, judgment, or similar documents (including settlements); or (b)
pursuant to any claim by a Governmental Entity or other Person for personal
injury, property damage, damage to natural resources, remediation, or payment or
reimbursement of response costs incurred or expended by such Governmental Entity
or Person pursuant to any Environmental Law, common law or statute.

    

    14.19 Intentionally
Omitted.

    

    14.20 “Environmental Permit” shall
mean any permit, license, approval, registration, identification number or other
authorization with respect to the Transferred Assets or the operations or
businesses of the Seller under any applicable law, regulation or other
requirement of the United States or any other country or of any state,
municipality or other subdivision thereof relating to the control of any
pollutant or protection of health or the environment, including laws,
regulations or other requirements relating to emissions, discharges, releases or
threatened releases of pollutants, contaminants or hazardous or toxic materials
or wastes into ambient air, surface water, groundwater or land, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport, or handling of chemical substances, pollutants,
contaminants or hazardous or toxic materials or wastes.

    

    14.21 “Equipment” shall mean all
machinery, transportation equipment, tools, equipment, furnishings and fixtures
owned, leased or subject to a contract of purchase and sale, or lease commitment
by the Seller.

    

    14.22 “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, and the related regulations, as
amended from time to time.

    

    14.23 “Excluded Assets” shall have
the meaning given such term in Section 1.02
hereof.

    

    14.24 “Facilities” shall mean the
six (6) real properties and interests in real properties that are leased by
Seller and are described in Schedule 14.24 to the
Disclosure Schedule.  Facilities shall include all fixtures,
improvements and other appurtenances erected or located on or affixed to all
said real property and interests in said real property.

    

    14.25 Intentionally
Omitted.

    

    14.26 “Final Net Working Capital”
means the Net Working Capital (i) as shown in Buyer’s Closing Statement, if no
Dispute Notice is duly delivered; or (ii) if such a Dispute Notice is delivered,
(A) as agreed by Buyer and Seller or (B) in the absence of such agreement, as
shown in the Firm’s calculation.

    

    14.27 “Financial Statements” shall
have the meaning given such term in Section 3.06(a)
hereof.

    

    14.28 “GAAP” shall have the meaning
given such term in Section 3.06(a)(ii)
hereof.

    

    14.29 “General Buyer Losses” shall
have the meaning given such term in Section 10.01
hereof.

    

    14.30 “Governmental Entity” shall
mean any arbitrator, court, administrative or regulatory agency, commission,
department, board or bureau or body or other government or authority or
instrumentality or any entity or Person exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government
whether foreign, federal, state, county, city or local.

    

    14.31 “Hazardous Materials” shall
mean any chemical, material, substance or waste that is regulated, classified or
otherwise characterized by any Governmental Entity under or pursuant to any
Environmental Law.

    

    14.32 “Indemnitee” shall mean the
Person or Persons indemnified, or entitled, or claiming to be entitled to be
indemnified, pursuant to the provisions of Sections 10.01 or
10.03 hereof,
as the case may be.

    

    14.33 “Indemnitor” shall mean the
Person or Persons having the obligation to indemnify pursuant to the provisions
of Sections
10.01 or 10.03 hereof, as the
case may be.

    

    14.34 Intentionally
Omitted.

    

    14.35 “Inventories” shall mean all
inventories of including but not limited to bearings, power transmission,
conveyor belting, rubber products, material handling products for industrial,
agricultural and OEM needs, goods, supplies and other inventories of Seller
relating to the Business, wherever situated.

    

    14.36 Intentionally
Omitted.

    

    14.37 Intentionally
Omitted.

    

    14.38 “Lien” shall mean any lien,
pledge, claim, charge, mortgage, deed of trust, lease, right of first refusal,
security interest or other encumbrance, option, defect or other restriction,
limitation or rights of any third Person of any nature whatsoever.

    

    14.39 “Losses” shall mean Seller
Losses or General Buyer Losses, as the case may be.

    

    14.40 “Material Adverse Effect”
shall mean a single event, occurrence or fact that, together with all other
events, occurrences and facts that could reasonably be expected to result in a
loss to the Business, which would have, or might reasonably be expected to have,
a material adverse effect on the assets, business, operations, prospects or
financial condition of the Transferred Assets or the Business that would result
in a diminution in value of the Transferred Assets to an extent greater than
$25,000, or that would constitute a criminal violation of law involving a
felony.

    

    14.41 ”Net Asset Value” shall mean
all assets of the Business less all the liabilities of the Business as of a
given date.

    

    14.42 “Net Working Capital” is the
current assets of the Business reduced by the current liabilities of the
Business both determined in accordance with generally accepted accounting
principles applied on a basis consistent with the past practices used by Seller
in the previous three (3) years and in accordance with the adjustments thereto
that have been agreed to by Seller and Buyer.  Schedule 14.42 sets
forth the parties’ agreement and calculation of Net Working Capital of the
Seller as of November 30, 2007.

    

    14.43 “Permitted Liens” shall mean
(a) Liens created by this Agreement, (b) Liens for current taxes and assessments
not yet due, (c) title of a lessor under an operating lease, (d) inchoate
mechanic, materialmen, workmen, repairmen, warehousemen, customer, employee and
carriers Liens arising in the ordinary course of business that are not resulting
from a breach, default or violation of any contract, agreement or law, (e)
zoning, entitlement or other land use and environmental regulations by any
Governmental Entity, provided that such
regulations have not been violated, and (f) such other Liens and imperfections
of title that, singly or in the aggregate, do not impose any material
limitations or restrictions on the conduct of the Business or the operation of
the Transferred Assets.

    

    14.44 “Person” shall mean a
corporation, an association, a partnership, an organization, a business, an
individual or a Governmental Entity.

    

    14.45 Intentionally
Omitted.

    

    14.46 “Pre-Closing Obligations”
shall mean all obligations of the Seller (including indemnification and other
contingent obligations) relating to (i) acts, events or omissions by any Person
or circumstances existing at or prior to the Closing, (ii) goods or services
provided to or for the benefit of the Seller or any of its affiliates prior to
the Closing, (iii) goods or services provided by or on behalf of the Seller or
any of its affiliates or licensees prior to the Closing, (iv) any pending or
threatened litigation or claims made or threatened prior to the Closing, (v) any
of the matters listed on Schedule 1.05 hereto,
(vi) the conduct of the Business, the Seller or operation of the Transferred
Assets or any benefit realized by the Seller prior to the Closing, (vii)
contracts, agreements and other commitments that were required to be scheduled
in Schedule
3.05(a) of the Disclosure Statement but were not scheduled and (viii) the
employees of the Seller under any contracts, agreements, arrangements or
understandings with such employees entered into or existing at or prior to the
Closing and all other obligations of the Seller or any of its affiliates with
respect to its employees at or prior to the Closing.

    

    14.47 “Proprietary Information”
shall mean collectively (a) Proprietary Rights and (b) any and all other
information and material proprietary to the Seller, owned, possessed or used by
the Seller, whether or not such information is embodied in writing or other
physical form, and which is not generally known to the public, that (i) relates
to financial information regarding the Seller or the Business, including,
without limitation, (x) accounting and inventory systems (y) business plans and
(z) sales, financing, pricing and marketing procedures or methods of the Seller
or (ii) relates to specific business matters concerning the Seller, including,
without limitation, the identity of or other information regarding sales
personnel, suppliers or customers of the Seller.

    

    14.48 “Proprietary Rights” means
all patents, inventions, shop rights, internet domain names, computer programs,
databases, compilations, descriptions, flow-charts, accounting and inventory
systems, know how, trade secrets, designs, plans, manuals, computer software,
specifications, confidentiality agreements, confidential information and other
proprietary technology and similar information; all registered and unregistered
trademarks, service marks, logos, corporate names, trade names and all other
trademark rights; all registered and unregistered copyrights; and all
registrations for, and applications for registration of, any of the foregoing,
that are used in the conduct of the Business.

    

    14.49 “Retained Liabilities” shall
have the meaning given such term in Section 1.05
hereof.

    

    14.50 “Seller” shall mean Rocky
Mtn. Supply, Inc., a Colorado corporation.

    

    14.51 “Seller Purchase Price” shall
have the meaning given such term in Section 1.03(a)
hereof.

    

    14.52 “Shareholders” shall mean
Edward Rutt and Dennis Hinchley.

    

    14.53 “Shareholders’ Notes” means
collectively or individually (a) a promissory note in the principal amount of
$150,000 made payable to Edward Rutt, in the form attached as Exhibit “B”, and (b)
a promissory note in the principal amount of $150,000 made payable to Dennis
Hinchley, in the form attached as Exhibit
“B”.

    

    14.54 “Subsidiary” shall mean, as
to a Person or other entity or organization in which such Person owns (directly
or indirectly) any equity or other similar corporate interest.

    

    14.55 “Tax Consideration” shall
have the meaning given such term in Section 1.08(a)
hereof.

    

    14.56 “Tax Returns” shall mean all
returns, declarations, reports, statements and other documents of, relating to,
or required to be filed in respect of, any and all Taxes.

    

    14.57 “Taxes” shall mean all
federal, state, local, foreign and other taxes, charges, fees, duties, levies,
imposts, customs or other assessments, including, without limitation, all net
income, gross income, capital, transfer, inventory, capital stock, license,
social security, unemployment, estimated taxes, gross receipts, sales, use, ad
valorem, transfer, franchise, profits, profit share, license, lease, service,
service use, value added, withholding, payroll, employment, excise, estimated,
severance, stamp, occupation, premium, property, windfall profits, or other
taxes, fees, assessments, customs, duties, levies, imposts, or charges of any
kind whatsoever, together with any interests, penalties, additions to tax, fines
or other additional amounts imposed thereon or related thereto.

    

    14.58 “Third Party Claims” shall
have the meaning given such term in Section 10.04(b)
hereof.

    

    14.59 “Trade Payables” shall mean
those obligations of the Seller relating to the provision of goods and services
to the Seller for the conduct of the Business in the ordinary course of business
of the Seller that relate to the Transferred Assets and that are classified as
Trade Payables in accordance with GAAP and are shown on Seller’s financial
statements.

    

    14.60 “Transferred Assets” shall
have the meaning given such term in Section 1.01(a)
hereof.

    

    14.61 “Transferred Employees” shall
have the meaning given such term in Section 6.01
hereof.

    

    ARTICLE
15

    MISCELLANEOUS

    

    15.01 Notices.  All
notices, requests, consents, directions and other instruments and communications
required or permitted to be given under this Agreement shall be in writing and
shall be deemed to have been duly given if delivered in person, by courier, by
overnight delivery service with proof of delivery or by prepaid registered or
certified United States first-class mail, return receipt requested, addressed to
the respective party at the address set forth below, or if sent by facsimile or
other similar form of communication (with receipt confirmed) to the respective
party at the facsimile number set forth below:

    

    If to the Seller,
to:                                                      Rocky
Mtn. Supply, Inc.

    c/o Edward Rutt,
President

    4009 16th Lane

    Greeley,
CO  80634

                                                                               (V)
(970) 356-1532

    (F) (970) 356-1532

    

    
      	
              Copies
      to:

            	
              Elizabeth
      Dickson Paulsen

            

    

    
      	
               
      

            	
              Brownstein
      Hyatt Farber Schreck, LLP

            

    

    
      	
               
      

            	
              410
      Seventeenth Street, Suite 2200

            

    

    
      	
               
      

            	
              Denver,
      CO  80202-4437

            

    

    (V) (303) 223-1187

    (F) (303) 223-0987

    

    If to the Buyer,
to:                                                      DXP
Enterprises, Inc.

    7272 Pinemont

    Houston, Texas 77040

    Attn:  David R. Little,
CEO

    (V) (713) 996-4755

    (F) (713) 996-6570

    

    
      	
              Copies
      to:

            	
              Gary
      A. Messersmith

            

    

    Looper, Reed & McGraw,
P.C.

    1300 Post Oak Blvd., Suite
2000

    Houston, Texas 77056

    (V) (713) 986-7216

    (F) (713) 986-7100

    

    or to
such other address or facsimile number and to the attention of such other
Person(s) as either party may designate by written notice.  Any notice
mailed shall be deemed to have been given and received on the third Business Day
following the day of mailing.

    

    15.02 Bulk Transfer
Laws.  Seller and Buyer agree that the bulk sales provisions of
Article 6 of chapter 155 in C.R.S. 1963 was repealed in 1991; therefore there is
not any bulk sales provisions of the Colorado statutes and/or codes applicable
to this Agreement.

    

    15.03 Assignment.  This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns.  No party to this
Agreement may sell, transfer, assign, pledge or hypothecate its rights,
interests or obligations under this Agreement without the prior written consent
of the other parties, except that the Buyer may assign its rights to any
affiliate of the Buyer (provided Buyer remains as an obligor under the Seller
Note and the Shareholders’ Notes).  No assignment of this Agreement or
any of the rights, interests or obligations hereof by the Buyer shall relieve
the Buyer of its obligations under this Agreement and, upon any such assignment
occurring prior to the Closing, the representations, warranties, covenants and
agreements contained in this Agreement shall be deemed to have been made by the
Buyer’s assignee as well as by the Buyer.

    

    15.04 Successors.  This
Agreement shall inure to the benefit of, be binding upon and be enforceable by
the parties hereto and their respective successors and assigns.

    

    15.05 Entire
Agreement.  This Agreement and the Exhibits and Schedules
hereto and the Disclosure Schedule constitute the entire agreement and
understanding between the parties relating to the subject matter hereof and
thereof and supersedes all prior representations, endorsements, premises,
agreements, memoranda communications, negotiations, discussions, understandings
and arrangements, whether oral, written or inferred, between the parties
relating to the subject matter hereof.  This Agreement may not be
modified, amended, rescinded, canceled, altered or supplemented, in whole or in
part, except upon the execution and delivery of a written instrument executed by
a duly authorized representative of each of the parties hereto.  No
action taken pursuant to this Agreement, including without limitation, any
investigation by or behalf of any party, shall be deemed to constitute a waiver
by the party taking such action of compliance with any representation, warranty,
covenant, or agreement contained herein.  The waiver by any party
hereto of a breach of any provision of this Agreement shall not operate or be
construed as a further or continuing waiver of such breach or as a waiver or any
other subsequent breach.

    

    15.06 Governing
Law.  This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Colorado without giving
effect to choice of law principles.  The parties submit to the
non-exclusive jurisdiction of the courts of the State of
Colorado.  Venue of any dispute arising out of this Agreement shall be
in Denver, Denver County, Colorado.

    

    15.07 Waiver.  The
waiver of any breach of any term or condition of this Agreement shall not be
deemed to constitute the waiver of any other breach of the same or any other
term or condition.

    

    15.08 Severability.  If
any term or other provision of this Agreement is invalid, illegal, incapable of
being enforced by any law or public policy, prohibited or unenforceable all
other terms or provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any
party.  Upon such determination that any term or other provision is
invalid, illegal, or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner in order
that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible.

    

    15.09 No Third Party
Beneficiaries.  Any agreement contained, expressed or implied
in this Agreement shall be only for the benefit of the parties hereto and their
respective legal representatives, successors and assigns, and such agreements
shall not inure to the benefit of the obligees of any indebtedness of any party
hereto, it being the intention of the parties hereto that no Person shall be
deemed a third party beneficiary of this Agreement, except to the extent a third
party is expressly given rights herein.

    

    15.10 Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original copy of this Agreement and all of which, when taken together
shall constitute one and the same Agreement.

    

    15.11 Headings.  Each
statement set forth in the Disclosure Schedule with respect to a particular
section herein shall be deemed made solely with respect to such section and not
with respect to any other section hereof unless specifically set forth in the
Disclosure Schedule as also being made with respect to such other
section.  The headings of the Articles and sections of this Agreement
have been inserted for convenience of reference only and shall in no way
restrict or otherwise modify any of the terms or provisions hereof or affect in
any way the meaning or interpretation of this Agreement.

    

    15.12 Negotiated
Transaction.  The provisions of this Agreement were negotiated
by the parties hereto, and this Agreement shall be deemed to have been drafted
by all of the parties hereto.

    

    15.13 Negotiation with
Others.  The Seller agrees that from the date hereof until the
Closing Date or the termination of this Agreement pursuant to Article XIII, it
will not, directly or indirectly, negotiate with any Person not a party hereto
or not affiliated with a party hereto with respect to a merger, consolidation,
asset purchase or any similar transaction with any such Person regarding the
Business or the Transferred Assets.

    

    15.14 Prevailing
Party.  In the event there is any legal action commenced to
enforce or interpret this Agreement, the prevailing party shall be entitled to
collect all reasonable costs incurred from the other party, including but not
limited to court costs, expert witness fees and attorneys’ fees.

    

    15.15 Disclosure
Schedules.  Seller will immediately update each Disclosure
Schedule when required because of (i) a change in the information provided, or
(ii) additional information must be provided.

    

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

    

    SELLER:

    Rocky Mtn. Supply, Inc.

    
 

    By:   Edward J.
Rutt

    

    

    SHAREHOLDERS:

    

    

    Edward Rutt

    

    

    Dennis Hinchley

    

    

    BUYER:

    

    DXP ENTERPRISES, INC.

    

    

    By:   Mac McConnell,
Senior Vice
Presidentex1069.htm

     

    Exhibit 10.69

     

    
      [
        * ]= Certain confidential
        information
        contained in this document, marked by brackets, has been omitted and
filed
separately
with
        the Securities and Exchange
        Commission pursuant to rule 24b-2 of the Securities Exchange Act of 1934,
        as
        amended.

      

      

      PRIVATE
        AND CONFIDENTIAL

      

      DRAFT
        DATED:  14 September 2007

      

    

    

    VODAFONE
      GROUP SERVICES LIMITED

    

    

    

    AND

    

    CHORDIANT
      SOFTWARE , INC.

    

    

    

    

    

    
      	
              
              

              GLOBAL
                FRAMEWORK AGREEMENT

              FOR
                THE SUPPLY OF

              SOFTWARE
                PRODUCTS AND SERVICES

              
              

            

    

    

    

    

    

    

    

    

    

    

     

    

     

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    GLOBAL
      FRAMEWORK AGREEMENT

    INDEX

    

    

    
      	
               

            	
              Clause

            	
              Page
                Nos

            
	
               

            	 	
               

            
	
              1. 

            	
              DEFINITIONS

            	
              1

            
	
              2. 

            	
              STRUCTURE
                AND PROCESS

            	
              3

            
	
              3. 

            	
              DURATION

            	
              4

            
	
              4.

            	
              GLOBAL
                PRICE BOOK

            	
              4

            
	
              5.

            	
              PRODUCT
                AND SERVICES INFORMATION

            	
              5

            
	
              6.

            	
              QUALITY
                ASSURANCE

            	
              5

            
	
              7.

            	
              GLOBAL
                PRODUCT APPROVAL [OPTION]

            	
              ERROR!
                BOOKMARK NOT DEFINED

            
	
              8.

            	
              WARRANTIES

            	
              7

            
	
              9.

            	
              TERMINATION

            	
              7

            
	
              10.

            	
              EFFECT
                OF TERMINATION

            	
              8

            
	
              11.

            	
              NOTICES
                AND E-MAIL

            	
              8

            
	
              12.

            	
              GOVERNING
                LAW AND JURISDICTION

            	
              9

            
	
              13.

            	
              ENTIRE
                AGREEMENT

            	
              9

            
	
              14.

            	
              VARIATION

            	
              10

            
	
              15.

            	
              LIMITATION
                OF LIABILITY

            	
              10

            
	
              16.

            	
              SURVIVAL

            	
              10

            
	
              17.

            	
              INTERPRETATION

            	
              11

            
	
              18.

            	
              COUNTERPARTS

            	
              13

            
	
              ANNEX
                A

            	
              1

            
	
              CONTRACT
                OF ADHERENCE (CoA)

            	
              1

            
	
              SCHEDULE
                1

            	
              4

            
	
              CONTENTS
                OF SPECIAL
                CONDITIONS

            	
              4

            
	
              SCHEDULE
                2

            	
              5

            
	
              GLOBAL
                TERMS AND
                CONDITIONS

            	
              5

            
	
              1.

            	
              DEFINITIONS

            	
              1

            
	
              2.

            	
              APPOINTMENT

            	
              7

            
	
              3.

            	
              SPECIAL
                CONDITIONS

            	
              8

            
	
              4.

            	
              PURCHASE
                ORDERS

            	
              8

            
	
              5.

            	
              PRICE

            	
              9

            
	
              6.

            	
              TAXES
                AND
                DUTIES

            	
              10

            
	
              7.

            	
              INVOICING
                AND
                PAYMENT

            	
              12

            

    

    

    
      
        

      

    

    
      
        
          Index

        

        
          i

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    

    
      	
              8. 

            	
              PACKING

            	
              14

            
	
              9. 

            	
              DELIVERY

            	
              14

            
	
              10. 

            	
              PERFORMANCE
                OF
                SERVICES

            	
              14

            
	
              11.

            	
              DELAY
                AND LIQUIDATED
                DAMAGES

            	
              ERROR!
                BOOKMARK NOT DEFINED.

            
	
              12.

            	
              TITLE
                AND
                RISK

            	
              15

            
	
              13.

            	
              RIGHT
                TO
                REJECT

            	
              ERROR!
                BOOKMARK NOT DEFINED.

            
	
              14.

            	
              PROJECT
                MANAGEMENT AND PROGRESS
                REPORTS

            	
              16

            
	
              15.

            	
              ERRORS
                AND
                OMISSIONS

            	
              ERROR!
                BOOKMARK NOT DEFINED.

            
	
              16.

            	
              ACCEPTANCE
                OF PRODUCTS AND
                SERVICES

            	
              16

            
	
              17.

            	
              INTERWORKING

            	
              17

            
	
              18.

            	
              INTERFACES

            	
              17

            
	
              19.

            	
              WARRANTIES

            	
              17

            
	
              20.

            	
              ISSUED
                PROPERTY

            	
              20

            
	
              21.

            	
              SOURCE
                CODE
                ESCROW

            	
              21

            
	
              22.

            	
              DATA
                PROTECTION AND LAW
                ENFORCEMENT

            	
              21

            
	
              23.

            	
              TERMINATION,
                CANCELLATION AND
                POSTPONEMENT

            	
              23

            
	
              24.

            	
              EFFECT
                OF
                TERMINATION

            	
              25

            
	
              25.

            	
              LICENCES
                FOR SOFTWARE AND
                DOCUMENTATION

            	
              27

            
	
              26.

            	
              INTELLECTUAL
                PROPERTY
                RIGHTS

            	
              29

            
	
              27.

            	
              INTELLECTUAL
                PROEPRTY RIGHTS
                IDEMNITY

            	
              29

            
	
              28.

            	
              INDEMNIFICATION
                PROCEDURES

            	
              29

            
	
              29.

            	
              FORCE
                MAJEURE

            	
              31

            
	
              30.

            	
              CORPORATE
                SOCIAL
                RESPONSIBILITY

            	
              31

            
	
              31.

            	
              CONFIDENTIALITY

            	
              31

            
	
              32.

            	
              ASSIGNMENT
                AND
                SUBCONTRACTING

            	
              33

            
	
              33.

            	
              CHANGE
                CONTROL
                PROCEDURE

            	
              33

            
	
              34.

            	
              RIGHTS
                OF THIRD
                PARTIES

            	
              33

            
	
              35.

            	
              PUBLICITY

            	
              34

            
	
              36.

            	
              NOTICES
                AND
                E-MAIL

            	
              34

            
	
              37.

            	
              ESCALATION

            	
              34

            
	
              38.

            	
              GOVERNING
                LAW

            	
              35

            
	
              39.

            	
              ENTIRE
                AGREEMENT

            	
              35

            
	
              40.

            	
              WAIVER

            	
              35

            
	
              41.

            	
              SEVERABILITY

            	
              36

            

    

    

    
      
        

      

    

    
      
        
          Index

        

        
          ii

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    

    
      	
              42.

            	
              VARIATION

            	
              36

            
	
              43.

            	
              NO
                PARTNERSHIP/AGENCY

            	
              36

            
	
              44.

            	
              HEALTH
                AND
                SAFETY

            	
              36

            
	
              45.

            	
              SURVIVAL

            	
              36

            
	
              46.

            	
              INSURANCE

            	
              37

            
	
              47

            	
              FURTHER
                ASSURANCE

            	
              38

            
	
              48.

            	
              AUDIT

            	
              38

            
	
              49.

            	
              LIMITATION
                OF
                LIABILITY

            	
              39

            
	
              50.

            	
              INADEQUACY
                OF
                DAMAGES

            	
              40

            
	
              51.

            	
              INTERPRETATION

            	
              40

            
	
              52.

            	
              ORDER
                OF
                PRECEDENCE

            	
              40

            
	
              53.

            	
              COUNTERPARTS

            	
              41

            
	
              SCHEDULE
                3

            	 	
              42

            
	
              GLOBAL
                PRODUCTS

            	 	
              42

            
	
              SCHEDULE
                4

            	 	
              45

            
	
              GLOBAL
                SERVICES

            	 	
              45

            
	
              SCHEDULE
                5

            	 	
              55

            
	
              GLOBAL
                PRICE
                BOOK

            	 	
              55

            
	
              SCHEDULE
                6

            	 	
              1

            
	
              CORPORATE
                SOCIAL
                RESPONSIBILITY

            	 	
              1

            
	
              SCHEDULE
                7

            	 	
              9

            
	
              CURRENCY
                CONVERSION
                PROCESS

            	 	
              9

            
	
              SCHEDULE
                8

            	 	
              14

            
	
              DATA
                PROCESSING
                AGREEMENT

            	
              ERROR!
                BOOKMARK NOT DEFINED.

            
	
              SCHEDULE
                9

            	 	
              15

            
	
              SOURCE
                ESCROW
                AGREMENT

            	 	
              15

            
	
              SCHEDULE
                10

            	 	
              36

            
	
              LOCAL
                ATTACHEMENTS

            	 	
              36

            

    

    

    
      
        

      

    

    
      
        
          Index

        

        
          iii

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    THIS
      GLOBAL FRAMEWORK AGREEMENT is made on
      the            21st    day
      of December, 2007.

    

    BETWEEN

     

    
      	
              (1)  

            	
              VODAFONE
                GROUP SERVICES
                LIMITED (company registered number 3802001) whose registered office
                is at Vodafone House, The Connection, Newbury, Berkshire RG14 2FN,
                United
                Kingdom (“VGSL”);
                and

            

    

     

    
      	
              (2)  

            	
              CHORDIANT
                SOFTWARE INC.
                a corporation incorporated in the state of Delaware, USA whose
                registered
                office is at 20400 Stevens Creek Blvd., Suite 400, Cupertino, CA
                95014,
                USA (“Supplier”)

            

    

     

    together
      referred to as the “Parties” and each
      individually as a “Party”.

    

     

    WHEREAS

     

    
      	
              (a)  

            	
              The
                Supplier is engaged in, amongst other activities, the development
                and
                supply of Products and Services (as defined
                below);

            

    

     

    
      	
              (b)  

            	
              VGSL
                and Supplier wish to establish an overall contractual framework for
                the
                supply of Products and Services to Vodafone Group Companies and Partner
                Networks; and

            

    

     

    
      	
              (c)  

            	
              The
                Parties have agreed to enter into this Global Framework Agreement
                upon the
                terms and subject to the conditions hereinafter
                contained.

            

    

     

    
      	
               

            	
              NOW
                IT IS HEREBY AGREED AS FOLLOWS: 

            

    

     

    
      	
              1.  

            	
              DEFINITIONS

            

    

     

    1.1           
      In this Global Framework Agreement:

    
      	
              
              

              “Business
                Day”

              
              

            	
              
              

              means,
                with respect to VGSL, a normal working day in England;

              
              

            
	
              
              

              “Contract
                of Adherence” or “CoA”

              
              

            	
              
              

              means
                a contract in the form set out in Annex A under which an SGC agrees
                to
                supply Products and Services to a VGC according to the terms and
                conditions set forth therein, including the Schedules attached
                thereto;

              
              

            
	
              
              

              “Effective
                Date”

              
              

            	
              
              

              means
                with respect to this GFA,  .December 21, 2007, which is the day
                on which this GFA shall come into effect;

              
              

            
	
              
              

              “Global
                Framework Agreement” or 

            	
              
              

              means
                this global framework agreement (as amended from time to time) including
                the Annexes and Schedules hereto;

              
              

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          1

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    “GFA”

    
 

    
      	
              
              

              “Global
                Product Approval Procedure”

              
              

            	
              
              

              has
                the meaning given in Clause 7.1;

              
              

            
	
              
              

              “Partner
                Network”

              
              

            	
              
              

              means:

               

              (i) a
                person (including subsidiaries of that person) operating a mobile
                telecommunications business, who is not a Vodafone Group Company,
                with
                which:

               

               

              (a) Vodafone
                Group Plc (or a subsidiary of Vodafone Group Plc) has in place a
                co-operation agreement in relation to, inter alia, the implementation
                of
                certain mobile telecommunications products and services;
                and/or

               

               

              (b) Vodafone
                Group Plc (or a subsidiary of Vodafone Group Plc) has in place a
                brand
                licence agreement in relation to, inter alia, the branding of mobile
                telecommunications products and services; or

               

               

              (ii) in
                respect of which Vodafone Group Plc owns (directly or indirectly)
                greater
                than zero (0)% but less than fifteen (15)% of the issued share
                capital;

               

              
              

            
	
              
              

              “person”

              
              

            	
              
              

              includes
                any corporation, limited liability company, partnership, limited
                liability
                partnership, joint venture, joint stock company, trust, estate, company
                and association, whether organised for profit or otherwise;

              
              

            
	
              
              

              “SGC”

              
              

            	
              
              

              means
                Supplier or a Supplier Group Company that enters into a CoA;

              
              

            
	
              
              

              “Special
                Conditions”

              
              

            	
              
              

              has
                the meaning set forth in Clause 3.2 of Schedule 2 (GTCs);

              
              

            
	
              
              

              “Global
                Terms and Conditions” or “GTCs”

              
              

            	
              
              

              means
                the global terms and conditions agreed by VGSL and Supplier for the
                supply
                of Products and Services by SGCs to VGCs as set out in Schedule 2
                (GTCs)
                attached hereto;

              
              

            
	
              
              

              “Supplier
                Group Company”

              
              

            	
              
              

              means
                Supplier or any company or corporation in respect of which Supplier’s
                ultimate holding company owns (directly or indirectly) more than
                fifty
                (50)% of the issued share capital;

              
              

            
	
              
              

              “Term”

              
              

            	
              
              

              has
                the meaning set forth in Clause 3 (Duration) below; and

              
              

            
	
              
              

              “VGC”

              
              

            	
              
              

              means
                each:

              
              

              
              

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          2

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	 	
              
              

               

              (i) Vodafone
                Group Company that enters into a CoA; and

               

               

              (ii) Partner
                Network that enters into a CoA.

               

              
              

            

    

     

    
      	
              1.2  

            	
              All
                undefined terms appearing in this GFA shall have the meaning given
                to them
                elsewhere in the Annexes and Schedules thereto, and references to
                Schedules means Schedules to the
                CoA.

            

    

     

    
      	
              2.  

            	
              STRUCTURE
                AND PROCESS

            

    

     

    
      	
              2.1.  

            	
              This
                GFA establishes the contractual framework for the supply of Products
                and
                Services by Supplier and Supplier Group Companies to Vodafone Group
                Companies and Partner Networks.

            

    

     

    
      	
              2.2.  

            	
              VGSL
                appoints Supplier as a non-exclusive supplier of products and services
                to
                VGSL, Vodafone Group Companies and designated Partner Networks during
                the
                term of the CoA.

            

    

     

    
      	
              2.3.  

            	
              Any
                Vodafone Group Company may, but is not obliged to, purchase Products
                and
                Services that are offered by Supplier under this GFA, by completing
                and
                signing the attached CoA with Supplier or the Supplier Group Company
                designated by Supplier after the Effective Date of this GFA. The
                CoA will
                govern the purchase and sale of Products and Services between the
                purchasing VGC and the selling SGC.

            

    

     

    
      	
              2.4.  

            	
              In
                certain cases VGSL may elect to join as a party to a CoA in order
                to
                accept contractual responsibility for, inter alia, payment of invoices.
                In
                such cases the CoA shall be modified accordingly and by the agreement
                of
                VGSL, the Supplier, and the relevant
                VGC.

            

    

     

    
      	
              2.5.  

            	
              VGSL
                may, by written notice to Supplier, designate certain Partner Networks
                that are permitted to enjoy any or all of the rights granted to Vodafone
                Group Companies under this GFA. Once so designated, the Partner Network
                will follow the procedure described in this GFA that applies to Vodafone
                Group Companies unless VGSL’s written instructions to Supplier specify
                otherwise. Where the Partner Network enters into an agreement in
                a form
                similar to the CoA with an SGC after the Effective Date of this GFA,
                such
                Partner Network shall be treated as a VGC, and where the term “VGC” is
                used in this GFA it will be interchangeable with the term “Partner
                Network” (unless VGSL specifies otherwise). Where a VGC ceases to be a
                Partner Network or Vodafone Group Company (as applicable) then the
                Supplier shall, if required by VGSL, procure that the applicable
                SGC
                terminates that CoA in accordance with the terms of that CoA. For
                the
                avoidance of doubt nothing shall prevent Supplier or SGC from entering
                into a new and separate agreement with that former Partner Network
                or
                Vodafone Group Company (as applicable) after the termination of the
                said
                CoA.

            

    

     

    
      	
              2.6.  

            	
              VGSL
                may itself purchase Products and Services from Supplier under the
                terms
                and conditions set forth in the Schedules by issuing
                a

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          3

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    
      	
                

            	
              Purchase
                Order to Supplier which references this GFA. VGSL need not enter
                into a
                CoA. With respect to each Purchase Order placed by VGSL for Products,
                the
                Parties agree that the Schedules will be deemed to be incorporated
                into
                the Purchase Order and govern the purchase and supply of the Products
                ordered therein; accordingly, where the term “VGC” or “SGC” is used in the
                Schedules, they shall be deemed to refer to VGSL and Supplier
                respectively, and where the term “Contract of Adherence” or “CoA” is used
                in the Schedules, it shall mean VGSL’s Purchase Order. Any Special
                Conditions agreed between VGSL and Supplier shall be set forth or
                referenced to in VGSL’s Purchase
                Order.

            

    

     

    
      	
              2.7.  

            	
              Supplier
                shall procure that its Supplier Group Companies will not unreasonably
                delay or withhold signature to a CoA that conforms to the requirements
                of
                this GFA.

            

    

     

    
      	
              2.8.  

            	
              It
                is agreed by the Parties that, where a CoA is concluded by a Vodafone
                Group Company or a Partner Network and a Supplier Group Company,
                VGSL
                shall in no circumstances be liable in respect of the actions or
                omissions
                of any other Vodafone Group Company or any Partner Network under
                any CoA,
                any Purchase Order or under this
                GFA.

            

    

     

    
      	
              3.  

            	
              DURATION

            

    

     

    This
      GFA
      shall come into effect on the Effective Date and unless earlier terminated
      in
      accordance with the provisions of this GFA shall continue in force and effect
      for five years (the “Initial
      Period”). This GFA shall automatically continue until terminated by
      either Party giving at least six (6) Months’ prior written notice of such
      termination to the other Party, such notice not to expire sooner than the end
      of
      the Initial Period, unless earlier terminated in accordance with the provisions
      of this GFA (“Term”).

     

    
      	
              4.  

            	
              GLOBAL
                PRICE BOOK

            

    

     

    
      	
              4.1.  

            	
              The
                Price of Products and Services shall be as set out in Attachment
                A to this
                GFA, the Global Price Book or as otherwise agreed in accordance with
                this
                Clause 4, Clause 5 (Product and Services Information) or any
                CoA.

            

    

     

    
      	
              4.2.  

            	
              All
                Price changes to the Global Price Book shall come into effect on
                the
                agreed effective date (as stated in a re-issue of the Global Price
                Book)
                and shall apply to all Products and Services that are invoiced to
                any VGC
                after such effective date.

            

    

     

    
      	
              4.3.  

            	
              With
                respect to Products and Services not included in the Global Price
                Book,
                but which a VGC wishes to have supplied pursuant to a CoA, Supplier
                shall
                procure that the relevant SGC negotiates the Prices with the requesting
                VGC and includes such Prices in the VGC’s Local Price
                Book.

            

    

     

    
      	
              4.4.  

            	
              VGSL
                has the right to request and procure that a local Price for Products
                set
                out in a Local Price Book is transferred to and becomes part of
                the

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          4

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    Global
      Price Book and upon such notification the provisions of Clause 4.2 shall take
      effect.

     

    
      	
              5.  

            	
              PRODUCT
                AND SERVICES INFORMATION

            

    

     

    
      	
              5.1.  

            	
              The
                Parties shall meet on a quarterly basis to discuss the future evolution
                of
                the Products. Supplier shall invite representatives of VGSL to its
                Executive Customer Advisory Board (“ECAB”) annual
                meetings.
                [ * ]

            

    

     

    
      	
              6.  

            	
              QUALITY
                ASSURANCE

            

    

     

    
      	
              6.1.  

            	
              The
                Supplier shall at all times be responsible for assuring the quality
                of all
                Products supplied to VGCs in accordance with the warranty provisions
                below.

            

    

     

    
      	
              6.2.  

            	
              To
                enable the VGSL Product Assurance Representative to be satisfied
                that the
                GFA requirements can be satisfied, the Supplier
                shall:

            

    

     

    
      	
              6.2.1.  

            	
              nominate
                a management representative responsible for quality assurance (“Supplier’s Quality Assurance
                Representative”), to liaise with VGSL Product Assurance
                Representative;

            

    

     

    
      	
              6.2.2.  

            	
              identify
                to VGSL all intended places of manufacture and permit, on thirty
                (30) days
                advance notice,  a capability and social audit of such
                facilities up to once per year. Supplier’s costs associated with such
                visits will be borne by the Supplier. In the event that such an audit
                finds Supplier’s demonstrated non-compliance with this
                GFA,  necessitating a revisit, the Supplier shall be liable for
                such costs;

            

    

     

    
      	
              6.2.3.  

            	
              identify
                to VGSL all major third party suppliers upon which the supply of
                Products
                and Services is dependent;

            

    

     

    
      	
              6.2.4.  

            	
              given
                reasonable notice, permit the VGSL Product Assurance Representative
                no
                more often than every six months, to conduct a quality review of
                relevant
                aspects of the Supplier’s operations and systems which may include design,
                development, manufacture, testing and servicing processes, regardless
                of
                whether these items are in-house or
                subcontracted;

            

    

     

    
      	
              6.2.5.  

            	
              during
                quality reviews or audits, make available relevant Supplier's quality
                assurance process information to facilitate VGSL’s review and assessment
                of supplier’s ongoing quality

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          5

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    processes.
      Recommended information includes, but is not limited to, release
      plans, test plans, functionality test coverage ratio, automated test
      coverage ratio, manual test coverage ratio, automated / manual test
      ratio, rated (critical / major / minor) open defects (bugs), rated
      (critical / major / minor) open support
      requests,  release quality metrics and approval records
      and criteria.

     

    
      	
              6.2.6.  

            	
              Costs
                for such reviews or audits shall be borne by VGSL unless such a visit
                is
                necessary as a result of Supplier’s demonstrated non-compliance with this
                GFA, in which case the Supplier shall pay such
                costs;

            

    

     

    
      	
               

            	
              and
                

            

    

     

    
      	
              6.2.7.  

            	
              make
                the results of any regulatory and compliance testing available to
                VGSL for
                inspection and review; and certification relating to such regulatory
                compliance, if any, (e.g. CE/RTTE/SAR) shall be provided prior to
                Product
                shipment.

            

    

     

    
      	
              6.3.  

            	
              Periodic
                quality review meetings shall be held at the time and frequency as
                agreed
                by the Parties with a target to hold such meetings on the approximate
                frequency of Supplier’s major product releases, but in any case no more
                often then once every 6 months. These meetings shall be held either
                at a
                jointly agreed location or telephonically on a jointly agreed format,
                and
                time and shall be attended by the Supplier’s Quality Assurance
                Representative.

            

    

     

    
      	
              6.3.1.  

            	
              The
                focus of the quality review meetings shall be for Supplier to provide
                data
                and updates on its development and quality operations as jointly
                determined by the parties beforehand, but which is generally anticipated
                to include the information suggested at clause
                6.2.5;

            

    

     

    
      	
              6.3.2.  

            	
              If
                VGSL is unsatisfied with the outcome of a periodic quality review,
                and
                VGSL’s concerns cannot reasonably be corrected within 30 days following
                such review, VGSL can request an on-site review at a relevant
                Supplier development site, which Supplier would agree to host, no
                more
                often than once per year.   Supplier shall be responsible
                for its own expenses in respect of such
                meetings.

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          6

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              6.3.3.  

            	 

    

     

    
      	
              7.  

            	
              WHERE
                THE REVIEW
                MEETINGS DESCRIBED IN CLAUSE 6.2 ARE NOT REQUIRED, VGSL MAY SPECIFY
                OTHER
                REVIEW MEETINGS WHERE SUPPLIER SHALL BE REQUIRED TO REPORT THE INFORMATION
                SET FORTH IN CLAUSE 6.3. PRODUCTS AND
                PAYMENTS

            

    

     

    Supplier
      will make available to VGSL and VGCs under CoAs those Products listed in Annex
      A
      hereto at the prices specified therein.  Provided always that the
      Supplier shall not execute a CoA nor accept a Purchase Order from a VGC without
      first obtaining the written approval of VGSL, VGSL will make payments to
      Supplier as provided in Annex A.  Clauses 5.2, 5.3, 6, 7.3, 7.4, 7.5,
      7.6, 7.7, and 7.8 of the CoA will apply to the payments due from VGSL as set
      forth in Annex A.

     

    
      	
              8.  

            	
              WARRANTIES

            

    

     

    Each
      Party warrants that it has the right, power and authority to enter into this
      GFA.

     

    
      	
              9.  

            	
              TERMINATION

            

    

     

    
      	
              9.1.  

            	
              Either
                Party (in this paragraph the "terminating Party")
                shall be entitled to terminate this GFA by giving written notice
                to the
                other Party (in this paragraph the "breaching Party") at any
                time if:

            

    

     

    
      	
              9.1.1.  

            	
              the
                breaching Party breaches any material provision of the GFA and (in
                the
                case of a breach capable of remedy) fails to remedy the breach within
                thirty (30) days after receiving written notice requiring it to do
                so;
                or

            

    

     

    
      	
              9.1.2.  

            	
              the
                breaching Party becomes subject to an Insolvency
                Event.

            

    

     

    
      	
              9.2.  

            	
              VGSL
                shall be entitled to terminate this GFA without liability to the
                Supplier
                at any time if:

            

    

     

    
      	
              9.2.1.  

            	
              there
                is a Change in Control of the Supplier as defined in Clause A
                (Change in Control) of Schedule 2 (GTCs);
                or

            

    

     

    
      	
              9.2.2.  

            	
              after
                being required by VGSL under Clause 2.4 to procure that an SGC terminates
                a CoA, that CoA has not been terminated within twenty (20) Business
                Days
                of being provided with such notice in accordance with Clause
                2.4.

            

    

     

    
      	
              9.3.  

            	
              VGSL
                may terminate this GFA upon (12) Months’ notice in writing to Supplier at
                any time during the Term, such notice to take effect on or after
                the
                1st
                anniversary of the Effective Date.

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          7

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              10.  

            	
              EFFECT
                OF TERMINATION

            

    

     

    
      	
              10.1.  

            	
              On
                termination of this GFA:

            

    

     

    
      	
              10.1.1.  

            	
              all
                materials of either Party in the control or possession of the other
                Party
                that contain or bear the other Party’s IPR or Confidential Information
                shall be destroyed or at the request of such Party returned to that
                Party;
                and

            

    

     

    
      	
              10.1.2.  

            	
              all
                other rights and obligations of the Parties under this GFA shall
                automatically terminate save for VGSL’s obligations to make payments
                pursuant to Clause 7 of this GFA and such rights and obligations
                as shall
                have accrued prior to such termination and any rights or obligations
                that
                expressly or by implication are intended to come into or continue
                in force
                on or after such termination pursuant to Clause 16
                (Survival).

            

    

     

    
      	
              10.2.  

            	
              Termination
                of this GFA shall be without prejudice to any CoAs or Purchase Orders
                that
                are in force at the date of such termination which shall continue
                in force
                and subject to the terms of the
                CoA.

            

    

     

    
      	
              11.  

            	
              NOTICES
                AND E-MAIL

            

    

     

    
      	
              11.1.  

            	
              All
                notices and other communications to be given under or in connection
                with
                this GFA shall be made in writing in English and shall be deemed
                to have
                been duly given: when delivered, if delivered by messenger during
                normal
                business hours of the recipient; when sent, if transmitted by facsimile
                transmission (receipt confirmed and with a confirmation copy sent
                by post)
                during normal business hours on a normal business day of the recipient;
                or
                on the fifth normal business day of the recipient following posting,
                if
                posted by international first class or recorded post postage pre-paid,
                in
                each case addressed as follows:

            

    

     

    
      	
              11.1.1.  

            	
              if
                to VGSL:

            

    

     

    Vodafone
      Group Services Limited

    Vodafone
      House

    The
      Connection

    Newbury

    Berkshire

    England
      RG14 2FN

    fax
      no:  +44 1635 676700

    tel
      no:  + 44.1635.33251

    Marked
      for the attention of: Director of Global Supply Chain Management (currently
      Detlef Schultz)

    

    Cc:
      General Counsel (currently Stephen Scott)

    Vodafone
      Group Services Limited

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          8

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    Vodafone
      House

    The
      Connection

    Newbury

    Berkshire

    RG14
      2FN

    United
      Kingdom

    Phone:
      +44 1635 673915

    Fax:
      +44
      1635 580761

    

     

    
      	
              11.1.2.  

            	
              to
                the Supplier:

            

    

    Chordiant
      Software Inc.

     

    Marked
      for the attention of: Director of Finance

    Facsimile
      Number: [                                                    
]

    Copy
      to

    Chordiant
      Software, Inc.

    20400
      Stevens Creek Blvd.

    Cupertino,
      CA 95014

    Attn.:
      General Counsel

     

    
      	
               

            	
              or
                to such other addresses as the Parties may from time to time notify
                pursuant to this Clause. 

            

    

     

    
      	
              11.2.  

            	
              Routine
                communications relating to the performance of this GFA may be conducted
                by
                electronic mail.  However, the Parties agree that any
                communication by electronic mail shall not amount to notice in writing
                for
                the purposes of Clause 11.1 or to a written instrument for the purposes
                of
                Clause 14 (Variation) and that any purported notice under, or variation
                of, this GFA by electronic mail shall have no
                effect.

            

    

     

    
      	
              12.  

            	
              GOVERNING
                LAW AND JURISDICTION

            

    

     

    
      	
              12.1.  

            	
              This
                GFA shall be governed by and construed in accordance with the laws
                of
                England and Wales.

            

    

     

    
      	
              12.2.  

            	
              Each
                Party irrevocably submits to the exclusive jurisdiction of the courts
                of
                England over any claim, dispute or difference arising under or in
                connection with the GFA.

            

    

     

    
      	
              13.  

            	
              ENTIRE
                AGREEMENT

            

    

     

    
      	
              13.1.  

            	
              This
                GFA represents the entire understanding between the Parties in relation
                to
                its subject matter and supersedes all agreements and representations
                made
                by either Party, whether oral or written, in relation to the subject
                matter of this GFA.  This Clause 13 shall not affect either
                Party’s liability for fraud.

            

    

     

    
      	
              13.2.  

            	
              This
                GFA shall apply to the exclusion of, and prevail over, any express
                terms
                contained in the standard documentation of either Party (including
                but not
                limited to any pre-printed standard terms and
                conditions

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          9

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    appearing
      on the reverse of any Purchase Order issued by VGSL in connection with the
      GFA).

     

    
      	
              14.  

            	
              VARIATION

            

    

     

    This
      GFA
      shall be capable of being varied only by a written instrument signed by hand
      in
      ink by a duly authorised officer or other authorised representative of each
      of
      the Parties.

     

    
      	
              15.  

            	
              LIMITATION
                OF LIABILITY

            

    

     

    
      	
              15.1.  

            	
              Except
                as set forth in Clause 15.3, the maximum liability of Supplier or
                VGSL to
                the other Party, excluding any liquidated damages paid or payable
                for
                Claims made under or in connection with this GFA whether based on
                contract, tort, negligence or otherwise shall be limited to £10 million
                in any
                period of twelve (12) Months, such period to commence in each case
                on the
                date of the incident, or the first of the series of incidents, giving
                rise
                to the Claim in question.

            

    

     

    
      	
              15.2.  

            	
              Except
                as set forth in Clauses 15.3, neither Supplier nor VGSL shall be
                liable
                for any indirect or consequential damages or losses, including loss
                of
                profits and loss of data where such damages or losses are determined
                to be
                an indirect or consequential damage or
                loss.

            

    

     

    
      	
              15.3.  

            	
              Nothing
                in the GFA excludes or limits the Parties’ respective liability for Claims
                with respect to the following:

            

    

     

    
      	
              15.3.1.  

            	
              Supplier’s
                liability under any relevant product liability legislation (e.g.
                General
                Product Safety Directive
                2001/95/EC);

            

    

     

    
      	
              15.3.2.  

            	
              Supplier’s
                liability for death or personal injury resulting from the supply
                or use of
                the Products or Services;

            

    

     

    
      	
              15.3.3.  

            	
              a
                Party’s liability under Clauses 22 (Data Protection) and 25 (Licenses for
                Software and Documentation), [A]
                (Intellectual Property
                Rights Indemnity) and [A]
                (Confidentiality) of
                Schedule 2 (GTCs);.

            

    

     

    
      	
              15.3.4.  

            	
              a
                Party’s liability for fraudulent misrepresentation or for death or
                personal injury resulting from its negligence;
                and

            

    

     

    
      	
              15.3.5.  

            	
              any
                other liability to the extent that such liability may not be excluded
                or
                restricted by law.

            

    

     

    
      	
              16.  

            	
              SURVIVAL

            

    

     

    Any
      termination of this GFA for any reason shall be without prejudice to any rights
      or remedies to which a Party may be entitled under the GFA or provided by law
      or
      in equity. Any such termination shall not affect any accrued rights or
      liabilities of either Party nor the coming into force or the continuance in
      force of

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          10

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

     any
      provision of this GFA, which is expressly or by implication intended to come
      into or continue in force on or after such termination

     

    
      	
              17.  

            	
              INTERPRETATION

            

    

     

    
      	
              17.1.  

            	
              In
                this GFA (except where the context otherwise
                requires):

            

    

     

    
      	
              17.1.1.  

            	
              the
                Schedules, Annexes and other documents which are stated to be incorporated
                into this GFA (as amended from time to time) shall form part of this
                GFA
                and shall be construed and shall have the same force and effect as
                if they
                were expressly set out in the main body of this GFA, and any reference
                to
                this GFA includes the Schedules, Annexes and such other
                documents;

            

    

     

    
      	
              17.1.2.  

            	
              references
                in this GFA to a Schedule or Annex shall be deemed to be a reference
                to
                the current version of the relevant Schedule or
                Annex;

            

    

     

    
      	
              17.1.3.  

            	
              the
                index and headings in this GFA are for ease of reference only and
                shall
                not constitute a part of this GFA for any purpose or affect its
                interpretation;

            

    

     

    
      	
              17.1.4.  

            	
              use
                of the singular includes the plural and vice
                versa;

            

    

     

    
      	
              17.1.5.  

            	
              use
                of any gender includes the other
                genders;

            

    

     

    
      	
              17.1.6.  

            	
              any
                reference to a directive, statute, statutory provision or subordinate
                legislation ("legislation") shall
                (except where the context otherwise requires) be construed as referring
                to
                such legislation as amended and in force from time to time and to
                any
                legislation which re-enacts or consolidates (with or without modification)
                any such legislation; and

            

    

     

    
      	
              17.1.7.  

            	
              any
                phrase introduced by the terms "including", "include",
                "in particular" or any
                similar expression shall be construed as illustrative and shall not
                limit
                the sense of the words preceding those
                terms.

            

    

     

    
      	
              17.2.  

            	
              Clauses
                1 (Definitions), A
                (Price), A
                (Intellectual Property Rights Indemnity), A
                (Corporate Social Responsibility), A
                (Confidentiality), A
                (Assignment and Subcontracting), A
                (Rights of Third Parties),A(Publicity),
                A
                (Escalation), A
                (Waiver),A (Severability),
                A
                (No Partnership/Agency), A (Survival), A
                (Insurance), A (Further
                Assurance), A(Audits),
                A (Inadequacy
                of Damages), A(Order
                of

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          11

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    Precedence)
      of Schedule 2 (GTCs) shall apply (mutatis mutandis) to the body of this
      GFA.

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          12

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    

     

    
      	
              18.  

            	
              COUNTERPARTS

            

    

     

    This
      GFA
      may be executed in any number of counterparts, each of which, when executed
      and
      delivered, shall be an original, and all the counterparts together shall
      constitute one and the same instrument.

    

    AGREED
      by the Parties through
      their authorised signatories.

     

    

    
      	
              
              

              Signed/Date:
                /s/ Detlef S. Schultz

              December
                21,2007

              Name:   Detlef
                S. Schultz

              Title:  Global
                Supply Chain Management Director

              For
                and on behalf of Vodafone
                Group Services Limited

            	
              
              

              Signed/Date

              December
                20, 2007

              
              

              .By:
                ../s/ Steven R. Springsteel

              Name:  Steven
                R. Springsteel

              Title:    Chairman,
                CEO and President

              By:
                /s/ Peter Norman

              Name:  Peter
                Norman

              Title:  Vice
                President and Chief Financial Officer

              
              

              For
                and on behalf of Chordiant Software,
                Inc.

            

    

    

    

    
      	
               

            	
              Attachments:
                

            

    

    

    
      	
               

            	
              Annex
                A: Payments, Products and Pricing 

            

    

    

    
      	
               

            	
              Annex
                B: CoA 

            

    

    

    
      	
               

            	
              Annex
                C: Documentation 

            

    

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          13

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    
      	
               

            	
              ANNEX
                A 

            

    

    

    
      	
               

            	
              PAYMENTS,
                PRODUCTS AND PRICING 

            

    

    

    

    

    
      	
               

            	
              A.  STANDARD
                SOFTWARE

            

    

    1.           
      Chordiant Decision Management Suite (by part and version number):

    
      	
              ·  

            	
              Chordiant
                Predictive Analytics Director;
                6100-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Strategy Director; 6101-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Decision Monitor; 6104-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Real-Time Decisioning Services;
                6102-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Database Decisioning Services;
                6103-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Recommendation Advisor; 6108-6.0.3

            

    

    
      	
              ·  

            	
              Chordiant
                Adaptive Decisioning Services;
                6106-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Data Preparation Director;
                6105-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Real-Time Proposition Monitoring;
                6111-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Interaction Services - 6107-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Campaign Management Decisioning Service -
                6109-6.0.2

            

    

    
      	
              1.  

            	
              Chordiant
                Marketing Director Suite:

            

    

    
      	
              ·  

            	
              Chordiant
                Marketing Director: 6.2.0.3

            

    

    
      	
              ·  

            	
              Chordiant
                Online Marketing Director; 6.2.0.3

            

    

    
      	
              ·  

            	
              Chordiant
                Mobile Marketing Director; 6.2.0.3

            

    

    

    The
      Standard Software listed above shall be deemed accepted upon
      delivery.

    At
      VGSL’s
      request, Supplier will extend the license to the Standard Software to any other
      operating system supported by Supplier so long as VGSL is currently covered
      by
      Maintenance Services with respect to such Software and VGSL’s usage of the
      Standard Software does not exceed the scope of the license it acquired for
      use.

     

    

    B.  LICENSE
      AND LICENSE
      FEES

    Supplier
      will enter into CoAs for enterprise licenses of all the Standard Software
      specified above (except as provided below) with the VGC’s listed below (the
“Listed VGCs”) for a license fee to be designated by VGSL.  The
      license fee so designated by VGSL shall be reasonable for the scope of the
      license provided.

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          14

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    Supplier
      agrees that it will not license the Standard Software to the Listed VGCs at
      any
      price that has not been designated or approved by VGSL.

    

    Listed
      VGCs:

    

    [
      * 1 Page of text omitted]

    

    *  License
      will not include the Marketing Director Suite

    

    Organic
      Growth

    There
      will be no change in the price for the license for a VGC to the extent that
      the
      number of subscribers supported by that VCG increases through organic
      growth.

    

    Growth
      through Merger or Acqusition

    If
      through acquisition or merger, a VGC increases its subscriber base following
      such acquisition or merger such that it moves from one pricing bracket (after
      taking into account any organic growth that has taken place up to the time
      of
      such acquisition) to another (ie, small to medium; large to very large)
      described in the future pricing matrix listed below, the VGC shall be required
      to pay the difference between the license and support fee amount for the bracket
      applicable immediately prior to the acquisition or merger and the license and
      support fee for the larger bracket applicable after giving effect to the
      acquisition or merger.

    

    Effect
      of Transfer:

    If
      there
      is a transfer of a CoA from one VGA to another VGA which has a subscriber base
      which would move that license to another pricing bracket after taking into
      account any organic growth up to the time of such transfer (ie, small to medium;
      large to very large) described in the future pricing matrix listed below, then
      the VGC shall be required to pay the difference between the license and support
      fee amount for the bracket applicable immediately prior to the transfer and
      the
      license and support fee for the new bracket.

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          15

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
               

            	
              C.
                SUPPORT
                AND
                USERS

            

VGCs
      that
      have licensed the Standard Software shall be entitled to install and operate
      the
      components of the Standard Software solely for the following number Users and
      shall be entitled to the following level of Support so long as it is receiving
      Maintenance Services.

    
      	
              
              

              CHORDIANT
                Decision Management Suite

            	
              
              

              Users

            	
              
              

              Support
                Level

            
	
              
              

              Chordiant
                Predictive Analytics Director

            	
              
              

              Unlimited
                nr of client systems

            	
              
              

              Standard
                (9x5)

            
	
              
              

              Chordiant
                Strategy Director

            	
              
              

              Unlimited
                nr of client systems

            	
              
              

              Standard
                (9x5)

            
	
              
              

              Chordiant
                Decision Monitor

            	
              
              

              Unlimited
                nr of client systems

            	
              
              

              Standard
                (9x5)

            
	
              
              

              Chordiant
                Database Decisioning Services

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              Chordiant
                Real-Time Decisioning Services

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Premium
                (24x7)

            
	
              
              

              Chordiant
                Recommendation Advisor

            	
              
              

              Unlimited
                nr of seats

            	
              
              

              Premium
                (24x7)

            
	
              
              

              Chordiant
                Interaction Services

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Premium
                (24x7)

            
	
              
              

              Chordiant
                Campaign Management Decisioning Service

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              Chordiant
                Adaptive Decisioning Services

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Premium
                (24x7)

            
	
              
              

              Chordiant
                Data Preparation Director

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              Chordiant
                Real-Time

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Premium

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          16

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              
              

              Proposition
                Monitoring

            	 	
              
              

              (24x7)

            

    

    

    
      	
              
              

              CHORDIANT
                Marketing Director Suite

            	
              
              

              Unit

            	
              
              

              Support
                Level

            
	
              
              

              Chordiant
                Marketing Director

            	
              
              

              Unlimited
                nr of URNs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              Chordiant
                OnLine Marketing Director

            	
              
              

              Unlimited
                nr of URNs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              Chordiant
                Mobile Marketing Director

            	
              
              

              Unlimited
                nr of URNs

            	
              
              

              Standard
                (9x5)

            

    

    

    
      	
               

            	
              D.
                VGSL Payment Schedule: 

            

    

    

    Subject
      always to clause 7 (Products and Payments), VGSL will pay the following amounts
      (plus VAT and all other taxes payable) to Supplier on or before the dates set
      forth below:

    

    1.           
      On or before Sept 1st
      2008:
€7,345,853 in licence fees, less such amounts that were payable to Supplier
      in
      license fees for the license of the Standard Software by Listed VGCs between
      the
      date of the GFA and September 1, 2008;

    

    2.           
      On or before Sept 1st
      2008:
€1,000,000 in support and maintenance fees, less such amounts that were payable
      to Supplier in support and maintenance fees by Listed VGCs between the date
      of
      the GFA and September 1, 2008;

    

    3. On
      or
      before Dec 1st
      2008:
€[*]
      in licence fees, less (a)
      the amount of the payment referred to in item 1 above and (b) such amounts
      that
      were payable to

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          17

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    Supplier
      in license fees for the license of the Standard Software by Listed VGCs between
      the date of the GFA and December 1, 2008;

     

        4. On
      or
      before April 1st
      2009:
€[ * ]
      in licence fees, less (a)
      the aggregate amount of the payments referred to in items 1 and 3 above and
      (b)
      such amounts that were payable to Supplier in license fees for the license
      of
      the Standard Software by Listed VGCs between the date of the GFA and April
      1,
      2009;

        

        5. On
      or
      before April 1st
      2009:
€2,231,700 in support and maintenance fees covering all Listed
      VGCs.

    

    Any
      such
      amounts paid by VGSL under items 1, 3 and 4 above may be applied by VGSL as
      a
      credit against the license fees payable for the licensing of the Listed
      VGCs.

    

    Total
      License Fees payable by April 1,
      2009: €14,877,997

    

    Total
      Support and Maintenance Fee for the provision of support and maintenance through
      until April 1st
      2010:
€3,231,700

    

    At
      VGSL’s
      option, after expiration of the initial Support period (ending April 1st
      2010)
      and each subsequent Support period, VGSL may acquire on behalf of the Listed
      VGCs an additional one year of Maintenance Services for the Standard Software
      licensed, for an annual support fee of not less than the previous year’s Support
      Fee (€2,231,700 for the first renewal period) and shall not increase from the
      previous year’s Support Fee by more than the percentage increase in the United
      Kingdom Retail Price Index (National Statistics Office) for the previous
      year.  All fees due under Clause D (€18,109,700) shall be
      non-cancelable and the sum paid non-refundable.

    Without
      prejudice to the non-cancelable nature of the obligation to pay for the initial
      Support period referred to above, payments stated or referred to in this
      paragraph shall be pro-rated according to the actual use of the Standard
      Software, and by which VGC.

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          18

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    E.  FUTURE
      PRICING

    

    VGSL
      may purchase additional licenses
      for the Standard Software products listed above at the respective quantities
      and
      license fees indicated below for majority owned subsidiaries of VGSL other
      than
      Listed VGCs. Furthermore VGSL may purchase additional licenses for the Standard
      Software products listed above at the respective quantities and license fees
      indicated below for minority owned subsidiaries of VGSL on a case by case basis,
      as agreed to by Supplier in its sole discretion.  All future pricing
      (table and discount levels below) only applies to VGCs in the following business
      areas:  Communications and is valid until
      Dec
      15, 2009.

    

    Majority
      Owned
      VGCs

    

    As
      part
      of this agreement, Supplier offers the following pricing for any majority owned
      VGCs in which Vodafone acquires a majority stake.

    

    
      	 	
              Nr
                of Subscr

            	
              Licence
                Fee CDM & CMD

            	
              Annual
                Support and Maintenance

            
	 	 	 	 
	
              Small

            	
              <5
                mill

            	
              [
                * ]

            	
              [
                * ]

            
	
              Medium

            	
              5
–
                10 mill

            	
              [
                * ]

            	
              [
                * ]

            
	
              Large

            	
              10
                – 30 mill

            	
              [
                * ]

            	
              [
                * ]

            
	
              Very
                Large

            	
              30
                – 50 mill

            	
              [
                * ]

            	
              [
                * ]

            
	
              Mega

            	
              >50
                mill

            	
              [
                * ]

            	
              [
                * ]

            

    

    

    Notwithstanding
      the foregoing, for one of the (large or smaller) majority owned VCGs that are
      purchasing the Chordiant Decision Management suite only as part of this
      agreement, that VCG may purchase the Marketing Director suite for the license
      fee of [ * ]
plus
      an annual 15% [ * ] support and
      maintenance.

    

    Standard
      Software products offered as part of the CDM licence include the then current
      versions of the following:

    

    
      	
              ·  

            	
              Chordiant
                Data Preparation Director: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Predictive Analytics Director: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Adaptive Decisioning Services: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Strategy Director: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Database Decisioning Services: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Real-Time Decisioning Services: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Recommendation Advisor: unlimited number of
                seats

            

    

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          19

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              ·  

            	
              Chordiant
                Interaction Services: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Campaign Management Decisioning Service: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Decision Monitor: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Real-Time Proposition Monitoring: unlimited number of
                CPUs

            

    

    

    Standard
      Software products offered as part of the CMD licence include the then current
      versions of the following:

    

    
      	
              ·  

            	
              Chordiant
                Marketing Director, core module: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                eMail Marketing Director: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Mobile Marketing Director: unlimited number of concurrent
                users

            

    

    

    The
      Standard Software listed above shall be deemed accepted upon
      delivery.

    

    Minority
      Owned
      VGCs

    

    For
      any
      mobile telecom organisation where VGSL has more than a 15% stake but less than
      50% Supplier offers a fixed discount of [ * ]%
      against Supplier's standard
      list price for Chordiant Decision Management and Chordiant Marketing Director
      Standard Software products listed above.

    

    Partner
      Organisation

    

    For
      Partner Network organisations, Supplier offers a fixed discount of [ * ]%
      against Supplier's standard
      price list, for Chordiant Decision Management and Chordiant Marketing Director
      Standard Software products listed above, subject to approval from
      Supplier.

    

    Organic
      Growth

    There
      will be no change in the price for the license for a VGC to the extent that
      the
      number of subscribers supported by that VCG increases through organic
      growth.

    

    Growth
      through Merger or Acqusition

    If
      through acquisition or merger, a VGC increases its subscriber base following
      such acquisition or merger such that it moves from one pricing bracket (after
      taking into account any organic growth that has taken place up to the time
      of
      such acquisition) to another (ie, small to medium; large to very large)
      described in the future pricing matrix listed above, the VGC shall be required
      to pay the

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          20

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    difference
      between the license and support fee amount for the bracket applicable
      immediately prior to the acquisition or merger and the license and support
      fee
      for the larger bracket applicable after giving effect to the acquisition or
      merger.

    

    Effect
      of Transfer:

    If
      there
      is a transfer of a CoA from one VGA to another VGA which has a subscriber base
      which would move that license to another pricing bracket after taking into
      account any organic growth up to the time of such transfer (ie, small to medium;
      large to very large) described in the future pricing matrix listed above, then
      the VGC shall be required to pay the difference between the license and support
      fee amount for the bracket applicable immediately prior to the transfer and
      the
      license and support fee for the new bracket.

    
      
        

      

    

    
      
        
          
            GFA
              for
              H/W & S/W Products

          

        

        
          21

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    ANNEX
      B

     

    CONTRACT
      OF ADHERENCE (CoA)

     

    

    DATE:
[__________________]

    

    PARTIES:

     

    
      	
              (1)  

            	
              [ AName
                of VGC]
                whose registered office is at [AAddress]
                (“VGC”);
                and

            

    

     

    
      	
              (2)  

            	
              CHORDIANT
                SOFTWARE
                INTERNATIONAL INC. a corporation incorporated in the state of
                Delaware, USA whose registered
                office is at 20400 Stevens Creek Blvd., Suite 400, Cupertino, CA
                95014,
                USA  (“SGC”)

            

    

     

    together
      referred to as the “Parties” and each
      individually as a “Party”.

     

    WHEREAS

     

    
      	
              (a)  

            	
              SGC
                is engaged in, amongst other activities, the development, manufacture
                and
                sale of Products and Services (as defined
                below);

            

    

     

    
      	
              (b)  

            	
              VGSL
                and the Supplier have entered into a Global Framework Agreement dated
                [ADecember  21,
                2007]
                in relation to
                such Products and Services;

            

    

     

    
      	
              (c)  

            	
              VGC
                and SGC wish to enter into this Contract of Adherence in accordance
                with
                the terms of such Global Framework
                Agreement.

            

    

     

    
      	
              1.  

            	
              DURATION

            

    

     

    This
      Contract of Adherence (“CoA”) shall come into
      effect
      on  __________,
      200[ ] (“Effective
      Date”) and unless
      earlier terminated in accordance with the provisions of this CoA shall continue
      in force and effect for five years (the “Initial Period”). This CoA
      shall automatically continue until terminated by either Party giving at least
      six (6) Months’ prior written notice of such termination to the other Party,
      such notice not to expire sooner than the end of the Initial Period, unless
      earlier terminated in accordance with the provisions of this CoA (“Term”).

     

    The
      terms
      and conditions in this CoA will continue to apply to any Purchase Order accepted
      by SGC prior to the effective date of the termination of this CoA, but will
      not
      apply to any Purchase Order accepted by SGC after such effective
      date.

     

    
      	
              2.  

            	
              PURPOSE

            

    

     

    Following
      the Effective Date, SGC shall supply Products and Services to VGC in accordance
      with this CoA, including the Schedules as modified by any Special Conditions
      permitted under Clause 3 of Schedule 2 (GTCs).

    
      
        

      

    

    
      
        
          CoA

        

        
          1

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    

     

    
      	
              3.  

            	
              NOTICES

            

    

     

    For
      the
      purpose of giving notices under this CoA, the details of the Parties are as
      follows:if to VGC:

     

    [           
      ]

     

    to
      the
      Supplier:

    Chordiant
      Software, Inc.

    20400
      Stevens Creek Blvd.

    Cupertino,
      CA 95014

    Marked
      for the attention of: Director of Finance

    Facsimile
      Number: [   
]

    Copy
      to

    Attn.:
      General Counsel

     

    or
      such
      other details as a Party may notify to the other Party from time to
      time.

     

    
      	
              4.  

            	
              ENTIRE
                AGREEMENT

            

    

     

    This
      CoA
      represents the entire understanding between the Parties in relation to its
      subject matter and supersedes all prior agreements and representations made
      by
      either Party, whether written or oral, except as set forth in the Special
      Conditions.

     

    
      	
              5.  

            	
              DEFINITIONS

            

    

     

    All
      undefined terms appearing in this CoA shall have the meaning given to them
      in
      the Schedules attached hereto and incorporated herein.

     

    AGREED
      by the Parties through
      their authorised signatories.

     

    

    
      	
              
              

              Signed/Date:
                .........................................................

              Name:   .................................................

              Title:      ........................................................

              For
                and on behalf of  Ainsert
                name of relevant Vodafone company]

            	
              
              

              Signed/Date:
                ........................................................

              Name:   ...............................................

              Title:      ........................................................

              For
                and on behalf of Chordiant Software
                Inc.

            

    

    

    
      	
               

            	
              Attachments:
                

            

    

    
      	
               

            	
              Schedule
                1: Contents of Special Conditions 

            

    

    
      	
               

            	
              Schedule
                2: Global Terms and Conditions 

            

    

    
      	
               

            	
              Schedule
                3: Global Products 

            

    

    
      	
               

            	
              Schedule
                4: Global Services 

            

    

    
      	
               

            	
              Schedule
                5: Global Price Book 

            

    

    
      
        

      

    

    
      
        
          CoA

        

        
          2

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
               

            	
              Schedule
                6: Corporate Social Responsibility 

            

    

    
      	
               

            	
              Schedule
                7: Currency Conversion Process 

            

    

    
      	
               

            	
              Schedule
                8: Data Processing Agreement [OPTION]
                

            

    

    
      	
               

            	
              Schedule
                9: Source Code Escrow Agreement 

            

    

    
      	
               

            	
              Schedule
                10: Local Attachments (if any) 

            

    

    

    
      
        

      

    

    
      
        
          CoA

        

        
          3

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    

     

    SCHEDULE
      1

     

    CONTENTS
      OF SPECIAL CONDITIONS

    

    SGC
      and
      VGC have agreed to the following Special Conditions, which are permitted
      modifications to the CoA body and/or Global Attachments as described in Clause
      3.1 of the GTCs and set forth below:

     

    

    
      	
              
              

              Permitted
                Modifications

              
              

            	
              
              

              CoA
                Reference (§)

              
              

            	
              
              

              Special
                Conditions

              
              

            
	
              
              

              Modifications
                required in order for the CoA to comply with the laws and regulations
                affecting VGC

              
              

            	 	
              
              

              [Ainsert
                details – if any]

              
              

              
              

            
	
              
              

              Modifications
                required in order for the CoA to comply with VGC’s governance policies and
                procedures

              
              

            	 	
              
              

              [Ainsert
                details – if any]

              
              

              
              

            
	
              
              

              Modifications
                that have been specifically designated in the Global Attachments
                as
                matters that are to be agreed locally by SGC and VGC in the CoA (e.g.
                currency for payment, performance bond etc.)

              
              

            	 	
              
              

              [Ainsert
                details – if any]

              
              

              
              

            
	
              
              

              Any
                agreement in place between SGC and VGC that is not superseded by
                this
                CoA

              
              

            	
              
              

              GTC
                §43 (Entire Agreement); CoA § 4

              
              

            	
              
              

              [Ainsert
                details – if any]

              
              

              
              

            
	
              
              

              Local
                Attachments added to the CoA (e.g. Local Price Book, Local Specifications
                and Project Plans)

              
              

            	 	
              
              

              [Ainsert
                details – if any]

              
              

              
              

            
	
              
              

              Modifications
                to the Global Attachments required by VGC for the purchase and deployment
                of a System or the implementation of a specific Project Plan and
                set forth
                in a Work Order or Local Attachment that specifically relates to
                such
                System or Project Plan

              
              

            	 	 

    

    

    
      
        
          Special
            Conditions (Schedule 1 to CoA)

        

        
          
          

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    SCHEDULE
      2

    

    GLOBAL
      TERMS AND CONDITIONS

    

    FOR
      THE SUPPLY OF PRODUCTS AND SERVICES

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              
              

              Global
                Terms and Conditions

              for
                the Supply of Product and Services

            

    

    

     

    
      	
              1.  

            	
              DEFINITIONS

            

    

     

    
      	
              1.1.  

            	
              In
                the CoA, unless the context otherwise requires, the following terms
                and
                expressions shall have the following
                meaning:

            

    

     

    

    
      	
              
              

              “Acceptance”

              
              

            	
              
              

              means
                final acceptance of Products and Services by VGC in accordance with
                the
                Acceptance Test Procedure and “Accepted” refers to Products and Services
                for which an Acceptance Certificate has been signed by VGC;

              
              

            
	
              
              

              “Acceptance
                Certificate”

              
              

            	
              
              

              means
                a document signed by VGC certifying Acceptance of Products and
                Services;

              
              

            
	
              
              

              “Acceptance
                Test Procedure”

              
              

            	
              
              

              means
                the process of measurement, examination and other activities required
                to
                verify that the Products and Services supplied or performed by SGC
                have
                been supplied or completed in accordance with the Specifications,
                such
                acceptance test procedure to be defined by VGC and agreed in writing
                by
                SGC and conducted by SGC with VGC witnessing, unless otherwise
                agreed;

              
              

            
	
              
              

              “Affected
                Deliverables”

              
              

            	
              
              

              has
                the meaning given in Clause 11.2;

              
              

            
	
              
              

              “Business
                Day”

              
              

            	
              
              

              means
                a normal working day in the country of VGC for which Products and
                Services
                are to be supplied, provided however that where the relevant country
                comprises more than one state or geographical area in which different
                normal working days apply, then “Business Day” shall mean a normal working
                day in such state or geographical area in which the relevant Delivery
                Address is located;

              
              

            
	
              
              

              "Change
                Control Procedure"

              
              

            	
              
              

              means
                the change control procedure agreed upon in writing by VGC and SGC
                and set
                forth in a Local Attachment;

              
              

            
	
              
              

              “Claim”

              
              

            	
              
              

              means,
                as the context requires, any actions, claims, demands, proceedings,
                losses, damages, costs, expenses and other liabilities of whatever
                nature
                (whether foreseeable or not) suffered, incurred or sustained, including
                court and legal costs assessed on a solicitor–client basis and other
                professional costs and expenses;

              
              

            
	
              
              

              “Confidential
                Information”

              
              

            	
              
              

              means
                all financial, business and technical or other data and all other
                information (whether written, oral or in electronic form or on magnetic
                or
                other media) concerning the business and affairs of

              
              

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          1

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	 	
              
              

              Party
                that the other Party obtains, receives or has access to as a result
                of the
                discussions leading up to, or the entering into, or the performance
                of,
                the CoA;

              
              

            
	
              
              

              “Contract
                of Adherence” or “CoA”

              
              

            	
              
              

              means
                the CoA entered into by VGC and SGC, to which this Schedule 2 is
                attached
                and into which it is incorporated;

              
              

            
	
              
              

              “Delivery
                Address”

              
              

            	
              
              

              means
                the address, and as applicable, the specific location (for example,
                room
                or shelter) to which Products are to be delivered or Services are
                to be
                performed (as the case may be), as specified in the relevant Purchase
                Order, as applicable;

              
              

            
	
              
              

              “Delivery
                Date”

              
              

            	
              
              

              means
                the date on which the Products are to be delivered to the Delivery
                Address, as specified in the CoA or Purchase Order, as
                applicable;

              
              

            
	
              
              

              “Development
                Work”

              
              

            	
              
              

              means
                the Products produced by SGC in the performance of development Services
                in
                accordance with the CoA, any Work Order or Purchase Order, as the
                case may
                be, as may be further described in Schedule 4-[Axx],
                including, as applicable, Specific Software, tools, logic, formats,
                file
                specifications, structures, explanations, flow charts, diagrams,
                data,
                sounds assets and other content, iconography, design documentation,
                artwork, sample packaging and other documents or items provided by
                SGC in
                relation to the development Services, including without limitation
                the
                associated Specifications;

              
              

            
	
              
              

              "Documentation"

              
              

            	
              
              

              means
                instructional and operating manuals and other printed or electronic
                materials to be supplied by SGC to VGC in connection with the Products
                and
                Services a copy of which are attached as Annex 3 to the
                GFA.  Documentation shall also include the table of RTDS
                performance included in Part 3 of Schedule 3 hereto.

              
              

            
	
              
              

              “Effective
                Date”

              
              

            	
              
              

              means
                in relation to a CoA, the date on which the CoA comes into effect
                as set
                out in the CoA;

              
              

            
	
              
              

              “Escrow
                Agreement”

              
              

            	
              
              

              means
                the source code escrow agreement set out in Schedule 9;

              
              

            
	
              
              

              “Force
                Majeure”

              
              

            	
              
              

              means
                any cause preventing a Party from performing any or all of its obligations
                which arises from or is attributable to acts, events, omissions or
                accidents beyond the reasonable control of the Party so prevented
                and as
                further defined in ClauseA29
                (Force Majeure);

              
              

            
	
              
              

              “Global
                Approval”

              
              

            	
              
              

              means
                approval of Products by VGSL after having conducted the process of
                measurement, examination and other activities set out in the Global
                Product Approval Procedure;

              
              

            
	
              
              

              “Global

              
              

            	
              
              

              means
                the Schedules attached to the body of the CoA or

              
              

            

       
        
          

        

      

      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          2

          
            

          

        

        
           [*
            ] = CERTAIN
            CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
            HAS
            BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
            PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
            AMENDED.

        

         

      

      	
              
              

              Attachments”

              
              

            	
              
              

              incorporated
                by reference therein, as may be updated from time to time, excluding
                any
                Local Attachments;

              
              

            
	
              
              

              “Global
                Price Book”

              
              

            	
              
              

              means
                the global price book agreed between Supplier and VGSL relating to
                the
                supply of Products and Services, as updated and reissued from time
                to
                time;

              
              

            
	
              
              

              “Global
                Product Approval Procedure”

              
              

            	
              
              

              means
                the testing procedures whereby the Products are verified by VGSL
                for
                compliance with the Requirement Specifications;

              
              

            
	
              
              

              “Global
                SLA”

              
              

            	
              
              

              means
                the Global Service Level Agreement agreed as part of the Support
                and
                Maintenance Services being provided by SGC as set forth in Schedule
                4-[Axx];

              
              

            
	
              
              

              “Global
                Specification”

              
              

            	
              
              

              means
                the detailed specification document prepared by Supplier and approved
                by
                VGSL specifying the functions to be performed by a Product (including
                the
                equipment on which it is to operate) based on the Requirement
                Specification;

              
              

            
	
              
              

              “Global
                Terms and Conditions” or “GTCs”

              
              

            	
              
              

              means
                these global terms and conditions agreed by VGSL and Supplier for
                the
                supply of Products and Services, which form part of the CoA;

              
              

            
	
              
              

              “Indemnified
                Party”

              
              

            	
              
              

              shall
                have the meaning given in Clause A28.1;

              
              

            
	
              
              

              “Insolvency
                Event”

              
              

            	
              
              

              means
                that the Party concerned has become subject to a voluntary arrangement
                with its creditors (within the meaning of the Insolvency Act 1986)
                or
                (being a company) has become subject to an administration order or
                has
                gone into liquidation (otherwise than for the purpose of amalgamation
                or
                reconstruction) or an encumbrance has taken possession of, or a receiver
                has been appointed to, any of the property or assets of the Party
                concerned, or that the relevant Party has ceased, or threatened to
                cease
                to carry on business, or any similar event has occurred in any relevant
                jurisdiction;

              
              

            
	
              
              

              “Installation”

              
              

            	
              
              

              means
                the Service of setting up, connecting, adjusting, testing and
                commissioning any Product to the VGC Network and “Installed” shall be
                construed accordingly;

              
              

            
	
              
              

              “Integration”

              
              

            	
              
              

              means
                the interface and connectivity measures planned and combined by SGC
                to
                link the Products with other products, including system and products
                architecture, gap analysis, interface planning and system
                implementation;

              
              

            
	
              
              

              “Intellectual
                Property Rights"

              
              

            	
              
              

              means:

               

              (i) rights
                in, and in relation to, any patents, registered designs, design rights,
                trade marks, trade and business

               

              
              

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          3

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	 	
              
              

              names
                (including all goodwill associated with any trade marks or trade
                and
                business names), copyright and related rights, moral rights, databases,
                domain names, semi-conductor and other, topography rights and utility
                models, and including the benefit of all registrations of, applications
                to
                register and the right to apply for registration of any of the foregoing
                items and all rights in the nature of any of the foregoing items,
                each for
                their full term (including any extensions or renewals thereof) and
                wherever in the world enforceable;

               

              (ii) rights
                in the nature of unfair competition rights and to sue for passing
                off and
                for past infringement; and

               

               

              (iii) trade
                secrets, confidentiality and other proprietary rights, including
                rights to
                know how and other technical information;

               

              
              

            
	
              
              

              “Issued
                Property”

              
              

            	
              
              

              means
                all property provided to SGC by or on behalf of VGC under the
                CoA;

              
              

            
	
              
              

              “Key
                Milestone”

              
              

            	
              
              

              means
                an important milestone agreed by VGC and SGC with respect to the
                supply of
                Products and Services, including by way of example, the Delivery
                Date,
                Ready for Acceptance, Ready for Installation or Ready for Service
                or any
                other such date agreed by the Parties from time to time;

              
              

            
	
              
              

              “Licence”

              
              

            	
              
              

              means
                a licence to use the Software and Documentation, as applicable, granted
                by
                SGC under Clause 25 (Licences for Software and
                Documentation);

              
              

            
	
              
              

              “Local
                Attachments”

              
              

            	
              
              

              means
                the Local Price Book, Local Specifications, Project Plans and any
                other
                schedules agreed by VGC and SGC in the CoA relating to Products and
                Services not otherwise specified in the Global Price Book;

              
              

            
	
              
              

              “Local
                Price Book”

              
              

            	
              
              

              means
                the Prices for Products and Services that are not included in the
                Global
                Price Book and are requested to be supplied by SGC to VGC;

              
              

            
	
              
              

              “Local
                Specifications”

              
              

            	
              
              

              means
                the specifications agreed by VGC and SGC for Products and Services
                that
                are not included in the Global Price Book, including any Requirements
                Specifications for such Products and Services;

              
              

            
	
              
              

              “Modification”

              
              

            	
              
              

              means
                any change or amendment to any Products, whether:

               

              (i) as
                a result of Development Work;

               

               

              (ii) as
                an update, upgrade, or new release in accordance with  Support
                and Maintenance Services;

              
              

            

       

       
        
          

        

      

      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          4

          
            

          

        

        
           [*
            ] = CERTAIN
            CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
            HAS
            BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
            PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
            AMENDED.

        

         

        
                                      (iii) as
            a new
            version of the Product; or

           

                                            (iv) otherwise;

        

         

      

      	
              
              

              “Month”

              
              

            	
              
              

              means
                a calendar month;

              
              

            
	
              
              

              “Outsourcer”

              
              

            	
              
              

              means
                the Person with which VGC has entered into an outsourcing or facilities
                management services agreement;

              
              

            
	
              
              

              “Party”
                and “Parties”

              
              

            	
              
              

              has
                the meaning set forth in the CoA;

              
              

            
	
              
              

              “person”

              
              

            	
              
              

              includes
                any corporation, limited liability company, partnership, limited
                liability
                partnership, joint venture, joint stock company, trust, estate, company
                and association, whether organised for profit or otherwise;

              
              

            
	
              
              

              “Price”

              
              

            	
              
              

              means
                the price for the supply of the Products and Services as set out
                in the
                Global Price Book or a Local Price Book, as applicable;

              
              

            
	
              
              

              “Products”

              
              

            	
              
              

              means
                the Software products described in Schedule 3 (Global Products) and/or
                in
                the Global Price Book or Local Price Book, which are supplied by
                SGC to
                VGC under a Purchase Order including any Modifications
                thereto,  tools, Development Work and associated
                Documentation;

              
              

            
	
              
              

              “Project
                Plan”

              
              

            	
              
              

              means
                the detailed written document prepared by SGC and approved by VGC
                specifying the timescales for the supply of Products and Services
                as set
                forth in a Local Attachment, Purchase Order as may be updated by
                the
                Parties from time to time;

              
              

            
	
              
              

              “Purchase
                Order”

              
              

            	
              
              

              means
                a purchase order and where applicable, any Work Order, placed with
                SGC by
                VGC for any Products and Services, which shall be subject to and
                incorporate  the terms of the CoA, and when accepted by SGC
                forms a part of this CoA;

              
              

            
	
              
              

              “RFA”
                or “Ready for Acceptance”

              
              

            	
              
              

              means
                that Products and Services are ready for VGC’s Acceptance Test Procedure,
                with all SGC’s internal tests finalised;

              
              

            
	
              
              

              “RFI”
                or “Ready for Installation”

              
              

            	
              
              

              means
                the date by which SGC shall deliver the Products to VGC’s site ready for
                Installation of such Products;

              
              

            
	
              
              

              “RFS”
                or “Ready for Service”

              
              

            	
              
              

              means
                Products have been installed and Accepted and are ready for commercial
                service;

              
              

            
	
              
              

              “Relevant
                Event”

              
              

            	
              
              

              means
                any act or omission by VGC the effect of which is materially to prejudice
                the ability of SGC to perform its obligations under the CoA;

              
              

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          5

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              
              

              “Requirements
                Specification”

              
              

            	
              
              

              means:

               

              (i) with
                respect to Products and Services in the Global Price Book,
                the  Documentation

               

               

              (ii) with
                respect to Products and Services in the Local Price Book, the
                Documentation

               

              
              

            
	
              
              

              “SGC”

              
              

            	
              
              

              has
                the meaning set forth in the CoA;

              
              

            
	
              
              

              “Services”

              
              

            	
              
              

              means
                any services (including development services, Installation services,
                Integration services, the services of consultant programmers, training,
                testing services, Support and Maintenance Services, disaster recovery
                or
                other services) set out in Schedule 4 (Global Services), the Global
                Price
                Book, Local Price or Purchase Order, as applicable, including any
                associated Documentation provided with the Services;

              
              

            
	
              
              

              “Software”

              
              

            	
              
              

              means
                software programs and adaptations, new releases and enhancements
                of or
                additions thereto and sound assets and other content, in each case
                that
                has been developed or licensed by SGC and embedded or otherwise used
                in
                the Products, including Standard Software, Specific Software and
                the
                associated Documentation;

              
              

            
	
              
              

              “Special
                Conditions”

              
              

            	
              
              

              has
                the meaning set forth in Clause 3.2;

              
              

            
	
              
              

              “Specific
                Software”

              
              

            	
              
              

              means
                that part of the Software which is the result of Development Work,
                including any Modification thereto and associated
                Documentation;

              
              

            
	
              
              

              “Specifications”

              
              

            	
              
              

              means
                collectively the Requirements Specifications, Global Specifications
                and,
                where applicable, the Local Specifications;

              
              

            
	
              
              

              “Standard
                Software”

              
              

            	
              
              

              means
                Supplier’s standard Software and any Third Party Standard Software
                (including Modifications thereto and associated Documentation) that
                is or
                could be offered by SGC to customers generally;

              
              

            
	
              
              

              “Supplier”

              
              

            	
              
              

              means
                Chordiant Software Inc;

              
              

            
	
              
              

              “Support
                and Maintenance Services”

              
              

            	
              
              

              means
                the support and maintenance services for the Products, as described
                in
                Schedule 4-[Ax]
                hereto;

              
              

            
	
              
              

              “Supplier
                Group Company”

              
              

            	
              
              

              means
                Supplier and any company or corporation in respect of which Supplier’s
                ultimate holding company owns (directly or indirectly) more than
                fifty
                (50)% of the issued share capital;

              
              

            

    

    
      
        

      

    

    
      
        
          
            GTCs
              for HW, SW, and Services (Schedule 2 to CoA)

            6

          

        

        
          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              
              

              “System”

              
              

            	
              
              

              means
                a combination of Products and Services which are integrated and operate
                together in the VGC Network and which are subject to Acceptance as
                a
                “system” according to a Project Plan or Work Order;

              
              

            
	
              
              

              “Term”

              
              

            	
              
              

              shall
                have the meaning set forth in Clause 1 of the CoA;

              
              

            
	
              
              

              “Third
                Party Standard Software”

              
              

            	
              
              

              means
                that part of the Software being licensed to SGC by a third party
                and that
                is offered to customers generally and has not been customized to
                meet
                specific VGC requirements or otherwise created as part of Development
                Work;

              
              

            
	
              
              

              “VAT”

              
              

            	
              
              

              means
                Value Added Tax or any analogous tax in any relevant jurisdiction
                including but not limited to use, sales and local sales taxes of
                any
                kind;

              
              

            
	
              
              

              “Vodafone
                Group Company”

              
              

            	
              
              

              means
                Vodafone Group Plc, Vodafone Group Services Limited and each person
                in
                respect of which Vodafone Group Plc owns (directly or indirectly)
                more
                than fifteen (15)% of the issued share capital;

              
              

            
	
              
              

              “Vodafone
                Code of Ethical Purchasing”

              
              

            	
              
              

              means
                the Vodafone Code of Ethical Purchasing and Business Principles,
                the
                current versions of which are set out in Schedule 6, as may be amended
                by
                VGC from time to time upon reasonable notice to SGC;

              
              

            
	
              
              

              “Vodafone
                Marks”

              
              

            	
              
              

              means
                the trademarks, trade names, brand or other proprietary words or
                symbols
                used by any Vodafone Group Company from time to time;

              
              

            
	
              
              

              “VGC”

              
              

            	
              
              

              has
                the meaning set forth in the CoA;

              
              

            
	
              
              

              “VGC
                Network”

              
              

            	
              
              

              means
                the digital cellular radio telephone network, information technology
                network, business systems and ancillary systems operated by VGC;
                and

              
              

            
	
              
              

              “Work
                Order” or “SOW”

              
              

            	
              
              

              means
                a work order or statement of work in such form as the Parties may
                agree
                from time to time that describes Development Work or other Services
                to be
                performed by SGC for VGC, and when completed and signed by the Parties
                forms a part of this CoA.

              
              

            

    

     

    
      	
              1.2.  

            	
              Any
                terms otherwise undefined in this Schedule 2 (GTCs) shall have the
                meaning
                given to them elsewhere in the CoA.

            

    

     

    
      	
              2.  

            	
              APPOINTMENT

            

    

     

    
      	
              2.1.  

            	
              VGC
                appoints SGC as a non-exclusive supplier to VGC of products and services
                for the Term of the CoA. SGC has agreed to undertake the supply of
                Products and Services to VGC for the Term of the CoA according to
                the
                terms and conditions in the CoA.

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          7

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              2.2.  

            	
              Unless
                the Parties agree otherwise, nothing in the CoA shall alter or affect
                the
                terms and conditions under which SGC supplies Products and Services
                ordered by VGC prior to the Effective Date of the
                CoA.

            

    

     

    
      	
              3.  

            	
              SPECIAL
                CONDITIONS

            

    

     

    
      	
              3.1.  

            	
              The
                Parties may modify the CoA body and the Global Attachments if requested
                by
                VGC but only with respect to the items specifically listed
                below:

            

    

     

    
      	
              3.1.1.  

            	
              modifications
                required in order for the CoA to comply with the laws and regulations
                affecting VGC but only to the extent required for
                compliance;

            

    

     

    
      	
              3.1.2.  

            	
              modifications
                required in order for the CoA to comply with VGC’s corporate governance
                policies and procedures but only to the extent required for
                compliance;

            

    

     

    
      	
              3.1.3.  

            	
              modifications
                that have been specifically designated in the Global Attachments
                as
                matters that are to be agreed locally by SGC and VGC in the CoA (e.g.
                currency for payment, performance
                bond);

            

    

     

    
      	
              3.1.4.  

            	
              any
                non-disclosure agreement in place between SGC and VGC that is not
                superseded by this CoA;

            

    

     

    
      	
              3.1.5.  

            	
              Local
                Attachments added to the CoA (e.g. Local Price Book, Local Specifications
                and Project Plans); and

            

    

     

    
      	
              3.1.6.  

            	
              modifications
                to the Global Attachments required by VGC for the purchase and deployment
                of a System or the implementation of a specific Project Plan and
                set forth
                in a Work Order or Local Attachment that specifically relates to
                such
                System or Project Plan.

            

    

     

    
      	
              3.2.  

            	
              If
                the Parties agree to make any of the modifications listed in Clause
                3.1,
                the agreed changes will be set out in a written document signed by
                the
                Parties substantially in the form of Schedule 1 (Contents of Special
                Conditions) (the “Special
                Conditions”).

            

    

     

    
      	
              4.  

            	
              PURCHASE
                ORDERS

            

    

     

    
      	
              4.1.  

            	
              After
                the Effective Date of the CoA, VGC may issue Purchase Orders for
                Products
                and Services to be supplied by SGC under the terms of the
                CoA.

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          8

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              4.2.  

            	
              SGC
                shall accept all Purchase Orders issued in accordance with the
                CoA.

            

    

     

    
      	
              4.3.  

            	
              VGC
                shall be under no obligation to issue any Purchase Orders or to purchase
                any minimum volume of, or particular category of, Products or
                Services.

            

    

     

    
      	
              4.4.  

            	
              All
                Purchase Orders placed by any VGC shall be subject to the terms and
                conditions of the CoA.

            

    

     

    
      	
              4.5.  

            	
              The
                Parties agree that neither the pre-printed standard terms of supply
                of SGC
                nor the pre-printed standard terms of purchase of VGC shall apply
                to any
                Purchase Order.

            

    

     

    
      	
              4.6.  

            	
              Up
                toAfourteen
                (14) Business Days prior to the scheduled Delivery Date, VGC may
                vary the
                Products and Services specified in a Purchase Order at no additional
                cost
                to VGC.

            

    

     

    
      	
              4.7.  

            	
              Within
                theAfourteen
                (14) Business Days prior to the scheduled Delivery Date set out in
                the
                Purchase Order, VGC may vary the Products and Services set out in
                a
                Purchase Order at no additional cost to VGC except those additional
                direct
                costs incurred by SGC and agreed by VGC that are the direct result
                of
                VGC’s variation to the Purchase Order. In claiming any additional costs,
                SGC shall demonstrate to VGC’s reasonable satisfaction that the Products
                and Services cannot be used in fulfilling SGC’s obligations under other
                Purchase Orders issued by VGC or for such Purchase Orders as may
                be
                reasonably anticipated to be issued by VGC (considering the nature
                of the
                VGC Network).  For the purposes of this Clause, SGC shall be
                allowed to seek reimbursement from VGC for services actually performed
                at
                the rate previously agreed between VGC and SGC.  SGC agrees to
                take all reasonable steps in order to minimize the costs associated
                with
                any variation of a Purchase Order.

            

    

     

    

     

    
      	
              5.  

            	
              PRICE

            

    

     

    
      	
              5.1.  

            	
              The
                Prices of Products and Services shall be set forth in the Purchase
                Order
                and calculated in accordance with the Global Price Book, the Local
                Price
                Book or as otherwise agreed by the Parties (if not specified in either
                the
                Global Price Book or Local Price Book); no additional prices or charges
                shall be payable by VGC for Products and
                Services.

            

    

     

    
      	
              5.2.  

            	
              The
                Price shall be inclusive of:

            

    

     

    
      	
              5.2.1.  

            	
              delivery
                of the Products and Services DDP to the Delivery Address (in accordance
                with Incoterms 2000);

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          9

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              5.2.2.  

            	
              any
                costs relating to the transfer and delivery of the Products and Services
                (including any information) to VGC, including insurance in transit,
                commissions and any export or import
                licences;

            

    

     

    
      	
              5.2.3.  

            	
              any
                licence or other fees paid to third parties for products and services
                used
                by SGC in the development or supply of Products and Services for
                or to
                VGC, unless there has been prior written agreement on a separate
                charge
                for such fees;

            

    

     

    
      	
              5.2.4.  

            	
              any
                costs and expenses to supply the Products and Services and perform
                the
                Services, including charges for legal and regulatory compliance,
                performance bonds, telephone, utilities, testing, inspection and
                SGC
                resources, as applicable; and

            

    

     

    
      	
              5.2.5.  

            	
              any
                costs for SGC accommodation, travel and subsistence unless otherwise
                specified in the Purchase Order.

            

    

     

    
      	
              5.3.  

            	
              During
                the Term of the CoA, no increase in the Price may be made (whether
                on
                account of increased material, labour or transport costs, fluctuation
                in
                rates of exchange or otherwise). After a Purchase Order has been
                accepted,
                there shall be no increase in the Prices included in that Purchase
                Order.

            

    

     

    
      	
              5.4.  

            	 

    

     

    [
      * ]

     

    

     

    
      	
              6.  

            	
              TAXES
                AND DUTIES

            

    

    

    VAT:

     

    
      	
              6.1.  

            	
              The
                Price shall be inclusive of all duties, levies or any similar
                charges.

            

    

     

    
      	
              6.2.  

            	
              If
                VAT is chargeable in respect of any amount payable hereunder, the
                Supplier
                shall provide VGC with a valid invoice that meets all requirements
                imposed
                by the relevant taxation authorities and which specifically states
                this
                tax and meets all further conditions necessary to allow VGC to obtain
                relief from such tax if a relief procedure is available (“Tax
                Invoice”).  Provided VGC is in receipt of a Tax Invoice,
                VGC will pay to the Supplier the VAT properly chargeable in respect
                of
                that payment, in accordance with the payment terms in Clause 7 (Invoicing
                and Payment).

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          10

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              6.3.  

            	
              VGC
                reserves the right to withhold payment of any taxes to the Supplier
                until
                the Supplier has provided VGC with a Tax Invoice and such other further
                information as VGC may reasonably
                request.

            

    

     

    
      	
              6.4.  

            	
              Where
                any relevant taxation authority determines that VAT is chargeable
                in whole
                or in part in respect of any amount payable hereunder, notwithstanding
                the
                treatment by the Supplier of any supply to VGC to the contrary, the
                Supplier shall hold harmless and indemnify VGC against any and all
                costs,
                charges, VAT and penalties arising save to the extent that VGC is
                (acting
                reasonably) able to recover such amounts from the applicable
                authorities.

            

    

     

    
      	
              6.5.  

            	
              If
                the Supplier has incorrectly determined the amount of VAT chargeable
                to
                VGC, then the invoice shall be corrected and where VGC
                has:

            

    

     

    
      	
              6.5.1.  

            	
              overpaid
                any amount, the Supplier will repay this amount to VGC plus interest
                and
                any related costs and shall also provide VGC with a correcting invoice
                or
                credit note for an amount equal to the overpayment made by VGC;
                and

            

    

     

    
      	
              6.5.2.  

            	
              paid
                less than the correct amount, VGC shall pay the outstanding amount
                to the
                Supplier upon receipt of a valid Tax
                Invoice.

            

    

     

    Both
      payments under Clauses 6.6.1 and 6.6.2 shall be made within thirty (30) days
      of
      being so notified. For the avoidance of doubt VGC shall not meet the cost of
      any
      penalties, interest or other charges arising from the incorrect VAT treatment
      by
      the Supplier of any supply made hereunder.

     

    Withholding
      Tax:

     

    
      	
              6.6.  

            	
              The
                Price shall be paid without set-off, counterclaim or required withholding
                or deduction unless prohibited by any applicable law.  In the
                event that a withholding tax or deduction is required by applicable
                law to
                be paid by VGC in respect of the Price, VGC will pay the Price net
                of the
                required withholding or deduction to the Supplier.  VGC will
                supply to the Supplier evidence to the reasonable satisfaction of
                the
                Supplier that VGC has accounted to the relevant authority for the
                sum
                withheld or deducted and will provide all such assistance as may
                be
                requested by the Supplier in recovering the amount of the
                withholding.  In the event that a double taxation treaty applies
                which provides for a reduced withholding tax rate, VGC shall only
                withhold
                and pay the reduced tax on behalf and for the account of the Supplier
                if
                an appropriate exemption certificate is issued by the competent tax
                authority.

            

    

     

    
      	
              6.7.  

            	
              If
                VGC, in good faith, pays the Price to the Supplier without set-off,
                counterclaim, or required withholding or deduction and a subsequent
                audit
                identifies that a withholding or deduction should have been made
                from the
                Price, the Supplier shall be liable to pay this withholding
                or

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          11

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    deduction
      to the relevant authority together with any interest and penalties due
      thereon.

     

    Warranty
      on Tax
      Residency:

     

    
      	
              6.8.  

            	
              The
                Supplier warrants and undertakes to VGC that it is tax resident in
                country
                of the Supplier and shall be deemed to remain tax resident in that
                territory unless it notifies VGC of a change of tax residency on
                thirty
                (30) days’ prior written notice.  In the event that the Supplier
                changes tax residency, the Supplier shall immediately provide any
                documentation required by VGC evidencing its tax residency in such
                territory.

            

    

     

    
      	
              6.9.  

            	
              In
                the event that VGC is not reasonably informed of a change in tax
                residence
                by the Supplier, the Supplier will indemnify VGC against any resulting
                costs, including but not limited to withholding tax, interest and
                penalties thereon.

            

    

     

    
      	
              7.  

            	
              INVOICING
                AND PAYMENT

            

    

     

    
      	
              7.1.  

            	
              Invoicing

            

    

     

    
      	
              7.1.1.  

            	
              SGC
                may invoice VGC for the Price of
                Products:

            

    

     

    
      	
              7.1.1.1.  

            	
              in
                the case of a Products subject to Acceptance, one hundred (100)%
                upon
                Acceptance of the Product; and

            

    

     

    
      	
              7.1.1.2.  

            	
              in
                the case of a Product not subject to Acceptance, one hundred (100)%
                upon
                actual delivery of the Product conforming to the relevant Purchase
                Order
                to the Delivery Address, as evidenced by VGC’s written notice of
                receipt.

            

    

     

    
      	
              7.1.2.  

            	
              SGC
                may invoice VGC for the Price of
                Services:

            

    

     

    
      	
              7.1.2.1.  

            	
              in
                the case of a Service not subject to Acceptance, one hundred (100)%
                for
                Services performed.  Services performed on a time and materials
                basis will be invoiced on a monthly
                basis;

            

    

     

    
      	
              7.1.2.2.  

            	
              in
                the case of a Service resulting in the production of Development
                Work, in
                accordance with the payment milestones set out in the Purchase Order
                or,
                if no payment milestones agreed, then 100% for Services performed.
                Services performed on a time and materials basis will be invoiced
                on a
                monthly basis; and

            

    

     

    
      	
              7.1.2.3.  

            	
              in
                the case of Support and Maintenance Services or other Services provided
                on
                an annual basis, 100

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          12

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    (100)%
      of
      the annual Price of the Service at the commencement of the annual Support
      period.

     

    
      	
              7.2.  

            	
              Invoice
                Format

            

    

     

    
      	
              7.2.1.  

            	
              All
                invoices duly issued by SGC and sent to VGC at the address designated
                in
                the CoA or Purchase Order shall:

            

    

     

    
      	
              7.2.1.1.  

            	
              state
                the VGC Purchase Order number(s) to which the invoice relates;
                and

            

    

     

    
      	
              7.2.1.2.  

            	
              attach
                a copy of the corresponding Acceptance Certificate(s) as signed by
                VGC, if
                applicable.

            

    

     

    
      	
              7.2.2.  

            	
              Invoices
                shall be issued no more frequently than once per
                Month.

            

    

     

    
      	
              7.3.  

            	
              Payment
                Period

            

    

     

    VGC
      shall
      pay all invoices issued in accordance with Clauses 7.1 and 7.2 not later than
      [ * ]
      calendar days after the date
      of receipt of the invoice by VGC, or such other date as may be agreed between
      the Parties and stated in the relevant Purchase Order.

     

    
      	
              7.4.  

            	
              Method
                of Payment

            

    

     

    All
      payments shall be by BACS (Banking Automated Clearing System), electronic
      transfer of funds or such other means as SGC and VGC may agree.

     

    
      	
              7.5.  

            	
              Currency

            

    

     

    All
      payments shall be made and all credits shall be given in Euros unless otherwise
      specified in the Special Conditions. If another currency is used for payment,
      the Parties agree to use the currency conversion process specified in Schedule
      7
      (Currency Conversion Process).

     

    
      	
              7.6.  

            	
              Late
                Payment

            

    

     

    If
      any
      payment from a Party becomes properly due under the CoA and remains unpaid
      after
      its due date, such unpaid amount shall carry interest at the rate of EURIBOR
      +
      0.5% from the day after the date on which the payment was due until the date
      payment is actually received in full, where “EURIBOR” shall mean the rate
      for borrowing in Euros from banks for periods of one (1) Month, compounding
      as
      necessary, for the relevant period which appears on Telerate, Page 248, or
      such
      page as may replace it from time to time.

     

    
      	
              7.7.  

            	
              Invoice
                Disputes

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          13

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    VGC
      may
      withhold from payment that part of any invoice which it disputes until the
      dispute is resolved in SGC’s favour. If it is established to the reasonable
      satisfaction of the Parties that an invoice has been rendered improperly or
      at
      the incorrect time, SGC shall promptly issue a credit note and a corrected
      invoice.

     

    
      	
              7.8.  

            	
              Set
                Off

            

    

     

    VGC
      may
      set off and withhold against invoiced amounts any debt or sum owing to VGC
      by
      SGC in connection with any Purchase Order.

     

    
      	
              8.  

            	
              PACKING

            

    

     

    SGC
      shall
      ensure that the packing of any Product contains clearly identifiable and proper
      markings (consistent with VGC’s written instructions, applicable industry
      standards and relevant laws). SGC’s packing of any Product shall be secure and
      tamper proof so as ensure that such Product reaches the relevant Delivery
      Address in an undamaged condition.

     

    
      	
              9.  

            	
              DELIVERY

            

    

     

    
      	
              9.1.  

            	
              SGC
                shall deliver the Products and Services DDP (in accordance with the
                Incoterms 2000) on the relevant Delivery Date during normal working
                hours
                to the Delivery Address. At VGC’s option, Software Products shall be
                delivered electronically.

            

    

     

    
      	
              9.2.  

            	
              The
                Products shall be accompanied by a delivery schedule listing all
                Products
                contained in such delivery.

            

    

     

    
      	
              9.3.  

            	
              SGC
                shall obtain at its own expense any import and export licences required
                for the supply of Products and Services to
                VGC.

            

    

     

    
      	
              10.  

            	
              PERFORMANCE
                OF SERVICES

            

    

     

    
      	
              10.1.  

            	
              SGC
                shall perform the Services for VGC subject to the terms and conditions
                of
                the CoA and the relevant Purchase
                Order.

            

    

     

    
      	
              10.2.  

            	
              All
                Services shall be provided by SGC until completed except as
                follows:

            

    

     

    
      	
              10.2.1.  

            	
              Any
                Services in respect of which a fixed or limited period has been agreed
                shall be provided by SGC for the period specified in the relevant
                Purchase
                Order (subject at all times to any rights of prior
                termination).

            

    

     

    
      	
              10.2.2.  

            	
              Any
                continuing Services in respect of which an indefinite period has
                been
                agreed shall be performed by SGC until terminated in accordance with
                the
                relevant Purchase Order.

            

    

     

    
      	
              10.3.  

            	
              Support
                and Maintenance Services

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          14

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    SGC
      shall
      provide support and maintenance Services for the Products according to the
      terms
      set forth in the Global SLA Schedule 4and the relevant
      Purchase Order.

     

    
      	
              10.4.  

            	
              Outsourcing

            

    

     

    
      	
              10.4.1.  

            	
              VGC
                shall be entitled to appoint an Outsourcer to run or host the Software
                for
                VGC’s benefit for the purpose of VGC’s internal business use upon prior
                written notice to SGC. The notice shall indicate the name and location
                of
                the Outsourcer. The Parties agree
                that:

            

    

     

    
      	
              10.4.1.1.  

            	
              nothing
                in the CoA shall prevent VGC from changing Outsourcer provided that
                the
                provisions of this Clause 4 are complied
                with;

            

    

     

    
      	
              10.4.1.2.  

            	
              VGC’s
                use of any Outsourcer will not alter VGC’s obligations under the CoA, and
                VGC will be liable for all acts or omissions of Outsourcer as if
                such acts
                or omissions were the acts or omissions of VGC, and a breach by Outsourcer
                of the terms of the CoA shall be deemed a breach by VGC of the terms
                of
                the CoA;

            

    

     

    
      	
              10.4.1.3.  

            	
              use
                of any Outsourcer shall not be construed as an assignment, sublicense
                or
                novation of the rights under the CoA to Outsourcer;
                and

            

    

     

    
      	
              10.4.2.  

            	
              VGC's
                use of any Outsourcer shall not release VGC from its obligations
                under the
                CoA.

            

    

     

    
      	
              11.  

            	
               [INTENTIONALLY
                OMITTED]

            

    

     

    
      	
              11.1.  

            	 

    

     

    
      	
              12.  

            	
              TITLE
                AND RISK

            

    

     

    
      	
              12.1.  

            	
              Notwithstanding
                any trade terms (including Incoterms) to the contrary in Clauses
                5 (Price)
                and 9 (Delivery), SGC shall bear all risk of loss or damage to the
                Products until Acceptance of the Products or, in the case of Products
                not
                subject to Acceptance, until delivery of the Products to VGC’s Delivery
                Address.

            

    

     

    
      	
              12.2.  

            	
              Title
                to Standard Software shall not pass to VGC but shall remain vested
                in SGC
                or the relevant third party licensor subject to the Licences granted
                pursuant to Clause A25
                (Licences for Software and
                Documentation).

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          15

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              13.  

            	
               [INTENTIONALLY
                OMITTED]

            

    

     

    
      	
              14.  

            	
              PROJECT
                MANAGEMENT AND PROGRESS REPORTS

            

    

     

    
      	
              14.1.  

            	
              At
                no additional cost to VGC, SGC shall appoint at least one project
                manager
                to supervise the carrying out of SGC’s obligations in accordance with the
                CoA and each Project Plan, as applicable.

            

    

     

    
      	
              14.2.  

            	
              SGC
                shall not change its project manager without notifying VGC in writing
                in
                advance of the change. VGC shall be entitled to request, and SGC
                shall
                comply with such request, to remove and replace the project
                manager.

            

    

     

    
      	
              14.3.  

            	
              The
                details of project management, key members of the project team and
                progress reports shall be set out in a written document agreed by
                the
                Parties, such as the Project Plan.

            

    

     

    
      	
              15.  

            	
               [INTENTIONALL
                OMITTED]

            

    

     

    
      	
              16.  

            	
              ACCEPTANCE
                OF PRODUCTS AND SERVICES

            

    

     

    
      	
              16.1.  

            	
              Except
                as may be otherwise specifically required by VGC, VGC’s Acceptance of
                Products and Services shall be subject to the Acceptance Test Procedures
                (ATP), if any, agreed in writing between SGC and VGC as described
                in the
                CoA and/or in a separate written document signed by both
                Parties.  In the absence of agreed ATPs for a Product or
                Service, Products and Services will be deemed accepted upon
                delivery.

            

    

     

    
      	
              16.2.  

            	
              The
                Acceptance Test Procedure for all Products and Services shall be
                at SGC’s
                cost, including equipment, preparations, demonstrations, testing
                and
                labour. Faults detected during such ATP shall be classified, prioritized
                and cleared by SGC in accordance with the ATP. VGC’s decision on fault
                priority classification is final.

            

    

     

    
      	
              16.3.  

            	
              SGC
                shall give to VGC at least ten (10) Business Days’ notice in writing of
                any ATP, and VGC shall be permitted at any time to witness and participate
                in ATPs.

            

    

     

    
      	
              16.4.  

            	
              SGC
                shall provide at no cost to VGC the complete test environment for
                the ATP
                and any SGC resources required for such testing at a location to
                be agreed
                by VGC.

            

    

     

    
      	
              16.5.  

            	
              Where
                requested by VGC, SGC shall perform technical demonstrations and/or
                trials, at no cost to VGC subject to a mutually agreed schedule of
                technical parameters. Where possible, such technical demonstrations
                and
                trials shall be performed as part of a joint activity with other
                VGCs, at
                a location agreed by VGC.

            

    

     

    
      	
              16.6.  

            	
              Notwithstanding
                the foregoing, SGC and VGC may agree that SGC may  deliver
                Products, Services, maintenance, and/or training to VGC that are
                not
                subject the Global Product Approval Procedure and the
                VGC

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          16

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    Acceptance
      Test Procedure.  In such cases, the Products, Services, maintenance,
      and/or training will be deemed Accepted upon Delivery.

     

    
      	
              17.  

            	
              [INTENTIONALLY
                OMITTED]

            

    

     

    
      	
              18.  

            	
              INTERFACES

            

    

     

    
      	
              18.1.  

            	
              SGC
                shall provide to VGC without charge full details and a Licence to
                use all
                interfaces in the Products and changes thereto, including open and
                proprietary interfaces, for the purpose of enabling VGC and its third
                party suppliers to interface with the Products. SGC shall be responsible
                for the accuracy of any interface information supplied. SGC shall
                provide
                reasonable prior written notice of any change to any Product
                interfaces.

            

    

     

    18.2  SGC
      shall ensure that there is no loss of functionality or performance of the
      Products due to any Modifications in the Products.

     

    
      	
              19.  

            	
              WARRANTIES

            

    

     

    
      	
              19.1.  

            	
              Each
                Party warrants and represents that it has the right, power and authority
                to enter into the CoA and carry out its obligations in relation to
                the
                supply of Products and Services
                hereunder.

            

    

     

    
      	
              19.2.  

            	
              SGC
                warrants and represents that it has obtained and will maintain all
                permissions, licences and consents necessary for SGC to supply the
                Products and Services in accordance with the
                CoA.

            

    

     

    
      	
              19.3.  

            	
              SGC
                warrants and represents that the use, possession, marketing or selling
                of
                the Products and Services do not and will not infringe the rights
                (including Intellectual Property Rights) of a third
                party.

            

    

     

    
      	
              19.4.  

            	
              SGC
                warrants and represents that the Products
                shall:

            

    

     

    
      	
              19.4.1.  

            	
              comply
                with all applicable Documentation;

            

    

     

    
      	
              19.4.2.  

            	
              be
                fit for any purpose held out by SGC in the Documentation or agreed
                in
                writing in an agreement or amendment signed by the
                Parties;

            

    

     

    
      	
              19.4.3.  

            	
              not
                be detrimentally affected by the processing of any data involving
                dates;

            

    

     

    
      	
              19.4.4.  

            	
              comply
                with all laws and regulations applicable to SGC and
                VGC.

            

    

     

    
      	
              19.4.5.  

            	
              comply
                with the requirements of the General Product Safety Directive 2001/95/EC,
                any applicable implementing legislation and any relevant applicable
                local
                standards or guidelines (as updated, reissued and implemented from
                time to
                time).

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          17

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              19.5.  

            	
              SGC
                warrants and represents that the Software supplied hereunder shall
                be free
                from all viruses, disabling programs or devices (each a “Virus”). In the
                event of
                a Virus in the Software, then in addition to other rights and remedies
                available to VGC under this CoA, SGC shall eliminate the Virus and
                mitigate any loss of operational efficiency or loss or corruption
                of data
                caused by the Virus or its
                elimination.

            

    

     

    
      	
              19.6.  

            	
              SGC
                warrants and represents that the Services shall
                be:

            

    

     

    19.6.1. performed
      by adequate numbers of appropriately qualified and trained personnel, with
      due
      care and diligence and to such high standard of quality as it is reasonable
      for
      VGC to expect in all the circumstances;

     

    19.6.2. compliant
      with all laws and regulations applicable to SGC, the Services and SGC’s
      obligations under the CoA; and

     

    19.6.3.  comply
      with all Specifications for the Services agreed between SGC and
      VGC.  

     

    19.7.1  As
      part of Support and Maintenance Services, Supplier shall promptly make available
      to VGC all modifications, updates, enhancements, corrections and new versions
      of
      the Standard Software when and if made generally available in its sole
      discretion (collectively, “Updates”).  Supplier will support each current
      version or Update of the Software for a period of two years, beginning on the
      date the Update is made generally available (“GA”) to Supplier’s customers, in
      accordance with the provisions of Schedule 4.  For a period of one year
      thereafter, Supplier will continue to support such Update using commercially
      reasonably efforts without reference to the response times set forth in Schedule
      4.  Notwithstanding its actual GA date, the initial version of the Standard
      Software that is initially delivered to VGC will be supported for a period
      of
      two years from the date of delivery and then one additional year
      thereafter.   Additionally, Supplier will support each current
      version or Update of the Software for a period of [ *
]
      after the date that the
      subsequent Update is made generally available (“GA”) to Supplier’s customers, in
      accordance with the provisions of Schedule 4

    

     

    19.7.2  Update
      shall not include any release, option or future product that Supplier licenses
      separately; however, an Update shall include any subsequent release, version,
      update or upgrade of the Standard Software that repackages or re-brands the
      same
      functionality of the Standard Software as a separately licensed product.
      Regardless of the name that is used for the Standard Software. 
Additionally, an Update shall not reduce the functionality existing within
      the
      licensed Standard Software.  Supplier will not seek to remove or materially
      reduce functionality from an Update by repacking such Updates as ‘new Products
      and Services’ such as to require VGC to acquire such Updates for additional
      license fees or cost beyond payment of the support fees in accordance with
      the
      terms of this CoA. 

     

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          18

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    Supplier
      will provide Updates for the Standard Software as and when developed for general
      release in Supplier’s sole discretion. 

     

     

    

     

    19.8  SGC
      warrants and represents that all Documentation provided and training given
      to
      VGC, its employees and designated third parties shall provide adequate
      instruction to enable VGC, its sub-contractors and distributors to make full
      and
      proper use of the Products. All Documentation and training shall be provided
      in
      English unless otherwise agreed in the CoA or otherwise as is required by the
      laws affecting VGC. In the event that VGC detects an error or omission in any
      Documentation or Training, SGC shall at no additional cost promptly correct
      the
      error or omission.

     

    19.9Breach
      of Warranty for Products and Services

     19.9.1  Without
      prejudice to any other remedies available to VGC under the CoA or otherwise,
      SGC
      undertakes at its own cost and risk to correct any Software Products which
      fail
      to comply with any part of the warranty described in Section 19.4 above during
      a
      period of [ * ]
      from the Delivery Date or
      (where applicable) Acceptance (whichever is later).  SGC shall ensure
      that any corrected Software shall comply with the Specifications and match
      the
      original faulty Software in all respects except the fault
      itself.  Provided that VGC gives SGC written notice of a breach of the
      foregoing warranty during the warranty period, SGC shall, correct any
      reproducible errors that cause the breach of the warranty or if SGC is unable
      to
      make the Software operate as warranted within
      90 days of notification, VGC shall be entitled to terminate its license for
      such
      Software Products and recover the fees paid to SGC for such
      license. 

    

     

    

     

    19.9.2  SGC
      shall ensure that all corrections are carried out within the agreed response
      and
      resolution times set forth in the in Schedule 4.

     

    19.9.3  Services.
      Without prejudice to any other remedies available to VGC under the CoA or
      otherwise, if in VGC’s discretion any Services are found to be in breach of
      Section 19.6 the first 90 days after performance or (where applicable)
      Acceptance, then VGC shall be entitled at its own option to require SGC within
       5
      Business Days, to:

     

    19.9.4.1perform
      those Services again; or

     

    
      	
              19.9.4.2  

            	
              provide
                such additional Services as shall be necessary to make good the
                fault.

            

    

     

    
      	
              19.6.4.  

            	
              19.9.5
                If Supplier is unable to make good the fault after notice and a reasonable
                opportunity to remedy the situation, then Supplier will pay VGC all
                costs
                incurred by VGC in obtaining such Services from a third party at
                the SGC’s
                cost Provided that VGC gives SGC written notice of
                a

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          19

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

     breach
      of the foregoing warranty during the warranty period, SGC shall, correct any
      reproducible errors that cause the breach of the warranty or if SGC is unable
      to
      rectify the problem within 90 days of notification, VGC shall be entitled to
      terminate its right to use the Development Work associated with such Services
      and recover the fees paid to SGC for such Services. 

     

    19.10Extension
      of Warranty

     

    19.10.1The
      period of the warranties set out under Clause 19.10 shall be extended by a
      period equal to the period the Products, Services or that portion thereof in
      which a defect or failure to which this Clause 19 applies cannot be used by
      reason of that defect.

     

    19.10.2  Replaced
      Products shall carry a warranty on the same terms as set out in Clause 19.10
      equal to the unexpired period of the original warranty or 12 Months, whichever
      is longer.  Re-performed Services shall carry a warranty on the same
      terms as set out in Clause 19.10 equal to the unexpired period of the original
      warranty or 3 Months, whichever is longer.

     

    

     

    [
      * ]

     

    19.11
      The
      warranties and remedies set forth in this Clause 19 shall be without prejudice
      to VGC’s other rights and remedies under the CoA or provided by law or in
      equity.

     

    
      	
              20.  

            	
              ISSUED
                PROPERTY

            

    

     

    
      	
              20.1.  

            	
              Issued
                Property, if any, shall remain the property of VGC and shall be used
                only
                for the purposes of the CoA and for no other purpose whatsoever without
                the prior written consent of VGC. SGC shall at its own expense be
                responsible for the safe custody of Issued
                Property.

            

    

     

    
      	
              20.2.  

            	
              Issued
                Property shall be returned to VGC in good condition at SGC's expense
                on
                termination of the CoA, any relevant Purchase Order (however terminated)
                or on earlier written demand.
                Furthermore:

            

    

     

    
      	
              20.2.1.  

            	
              SGC
                shall comply with VGC's reasonable directions for the return of Issued
                Property and shall not claim any lien over Issued
                Property.

            

    

     

    
      	
              20.2.2.  

            	
              Carriage
                of Issued Property shall be at VGC's direction and shall not be subject
                to
                any handling charge by SGC.

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          20

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              21.  

            	
              SOURCE
                CODE ESCROW 

            

    

     

    
      	
              21.1.  

            	
              SGC
                undertakes to promptly enter into a source code escrow agreement
                for the
                Software with VGC or VGSL, as specified by VGC, substantially in
                the form
                of the Escrow Agreement. Unless otherwise agreed, SGC will enter
                into the
                Source Code Escrow Agreement no later than thirty (30) days after
                the
                Effective Date of the CoA.

            

    

     

    
      	
              21.2.  

            	
              SGC
                additionally undertakes to procure that the Escrow Agent (as defined
                in
                the Escrow Agreement) executes the Escrow
                Agreement.

            

    

     

    
      	
              22.  

            	
              DATA
                PROTECTION AND LAW ENFORCEMENT

            

    

     

    
      	
               

            	
              22.1

            	
              SGC
                shall during the term of this CoA comply with all applicable laws,
                regulations, regulatory requirements and codes of practice in connection
                with its processing of personal information pursuant to this CoA,
                including without limitation, by complying with the Data Protection
                Directive (together, the "Data Protection
                Laws")
                applicable to a controller of that personal information and shall
                not do,
                or cause or permit to be done, anything which may cause or otherwise
                result in a breach by VGC of the same.

            

    

     

    
      	
              22.2  

            	
              SGC
                agrees that where the provision of any Services under a Purchase
                Order
                will result in the processing of any personal information by SGC
                on behalf
                of VGC, SGC shall:

            

    

     

    
      	
               

            	
              24.2.1

            	
              enter
                into a data processing contract with VGC in the form of that attached
                as
                Schedule 8 (Data Processing Agreement) prior to the commencement
                of any
                processing of such personal data; and

            

    

     

    
      	
               

            	
              24.2.2

            	
              process
                all VGC personal data only pursuant to and in accordance with such
                processing contact. 

            

    

     

    
      	
              22.3  

            	
              SGC
                shall be liable for and shall indemnify VGC and hold VGC harmless
                against
                any and all claims, actions, liabilities, losses, damages and expenses
                (including legal expenses) incurred by VGC which arise directly or
                indirectly out of or in connection with SGC’s breach of its obligations
                pursuant to Clauses 22.1 and 22.2, including without limitation those
                arising out of any third party demand, claim or action, or any breach
                of
                contract, negligence, fraud, wilful misconduct, breach of statutory
                duty
                or non-compliance with any part of the Data Protection Laws by SGC
                or
                SGC’s personnel.

            

    

     

    
      	
               

            	
              22.4

            	
              For
                the purposes of Clauses 22.1 to 22.3, the term “Data Protection Directive”
                shall mean Directive 95/46/EC of the European Parliament and of the
                Council of 24 October 1995 on the protection of individuals with
                regard to
                the processing of personal data and on the free movement of such
                data
                (Official Journal L 281, 23/11/1995 P. 0031 – 0050), “controller”,
                “personal data” and “processing” shall have the meanings ascribed to these
                terms in the Data Protection Directive, and the term
                

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          21

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    “personal
      information” shall mean personal data and any information identifying, directly
      or indirectly, a VGC’s customers, users or employees, including their mobile
      number, MSISDN or IMSI, and information that could reasonably be related to
      such
      identifying information.

     

    
      	
               

            	
              22.5

            	
              SGC
                agrees and acknowledges that VGC may be legally required to provide
                assistance to Law Enforcement Authorities in respect of the detection,
                investigation, prosecution or prevention of crime, including the
                carrying
                out of lawful interception and complying with disclosure obligations.
                Accordingly, SGC agrees that it shall provide the following assistance
                to
                VGC and each relevant Vodafone Group Company:

            

    

     

    
      	
               

            	
              22.5.1

            	
              implement
                and maintain such interception capability in accordance with VGC’s
                requirements where VGC is obliged by Applicable Law to ensure or
                procure
                that such capability is implemented and maintained;
                

            

    

     

    
      	
               

            	
              22.5.2

            	
              implement
                and maintain such data retention capability in accordance with VGC’s
                requirements where VGC is obliged by Applicable Law, to ensure or
                procure
                that such capability is implemented and maintained;
                

            

    

     

    
      	
               

            	
              22.5.3

            	
              retain
                such data on the use of the Services by VGC’s customers (including without
                limitation data referring to the routing, duration, time or volume
                of a
                communication, the protocol used, the location of the terminal equipment
                of the sender or recipient, the network on which a communication
                originates or terminates and the beginning, end or duration of a
                connection) as VGC may require in order to comply with Applicable
                Laws
                regarding the retention or preservation of data;
                

            

    

     

    
      	
               

            	
              22.5.4

            	
              implement
                and maintain such customer identification procedures in accordance
                with
                VGC’s requirements where VGC is obliged by Applicable Law to ensure or
                procure that such procedures are implemented and maintained; and
                

            

    

     

    
      	
               

            	
              22.5.5

            	
              provide
                such other assistance as is necessary to enable VGC to comply with
                requests for assistance from Law Enforcement Authorities, under Applicable
                Law, including (but not limited to) the carrying out of interception
                of
                communications and the performance of disclosure obligations.
                

            

    

     

    
      	
               

            	
              22.6

            	
              In
                respect of any assistance provided by SGC pursuant to Clause 22.5.5,
                SGC
                agrees to ensure that any requests for assistance from Law Enforcement
                Authorities, and the details of any assistance provided and all
                information connected with such requests is treated with the highest
                level
                of confidentiality and secrecy. In particular, it shall procure that:
                

            

    

     

    
      	
               

            	
              22.6.1

            	
              only
                nominated individuals who are permanent employees of SGC and who
                are
                notified and agreed in advance with VGC

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          22

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    are
      made
      aware of such requests and information connected with such
      requests;

     

    
      	
               

            	
              22.6.2

            	
              such
                nominated individuals are legally bound by, and notified of,
                confidentiality and secrecy obligations in respect of all information
                concerning law enforcement assistance, including (without limitation)
                surveillance targets, frequency of requests or the details of any
                information provided; and 

            

    

     

    
      	
               

            	
              22.6.3

            	
              any
                information acquired in the course of assisting with such requests
                shall
                be used solely upon VGC’s instructions and solely for the purpose of
                providing assistance under Clause 22.5.1.

            

    

     

    
      	
               

            	
              22.7

            	
              In
                respect of any data retained in accordance with Clause 22.5.3, SGC
                agrees
                that such data is the confidential and proprietary information of
                VGC and
                shall be processed in accordance with Clauses 22.1 to 22.4.
                

            

    

     

    
      	
               

            	
              22.8

            	
              In
                the event that SGC receives a request for assistance from a Law
                Enforcement Authority in respect of Services provided pursuant to
                this
                CoA, other than pursuant to Clause 22.5 in respect of which it is
                legally
                bound to provide such assistance, SGC shall, to the extent permitted
                by
                law, inform VGC of such request and provide such details as VGC may
                require. 

            

    

     

    
      	
               

            	
              22.9

            	
              In
                Clauses 22.5 to 22.8 the term “Applicable Law”
means
                the relevant law applicable to VGC and/or each Vodafone Group Company
                and
                “Law Enforcement
                Authority” means any law enforcement authority, governmental agency
                or other authority responsible for safeguarding national security,
                defence, or the prevention, investigation, detection and prosecution
                of
                crime, which has jurisdiction in the relevant territory.
                

            

    

     

    
      	
              22.10

            	
              The
                VGC shall reimburse any reasonable costs of SGC where SGC can demonstrate
                that the requirements under Clause 22.5 require SGC to bear either
                capital
                or operating costs over and above those costs SGC would, but for
                the
                specific requirements of Clause 22.5, have been likely to incur.
                

            

    

     

    
      	
              23.  

            	
              TERMINATION,
                CANCELLATION AND POSTPONEMENT

            

    

     

    
      	
              23.1.  

            	
              Either
                Party (in this paragraph the "terminating Party")
                shall be entitled to terminate a CoA, a Purchase Order, in whole
                or in
                part, as applicable, with immediate effect by giving written notice
                to the
                other Party (in this paragraph the "breaching Party") at any
                time if:

            

    

     

    
      	
              23.1.1.  

            	
              the
                breaching Party breaches any other material provision of the CoA,
                Purchase
                Order and (in the case of a breach capable of remedy) fails to remedy
                the
                breach within thirty (30) days after receiving written notice from
                the
                terminating Party requiring it to do so;
                or

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          23

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    
      	
              23.1.2.  

            	
              the
                breaching Party becomes subject to an Insolvency Event;
                or

            

    

     

    
      	
              23.1.3.  

            	
              the
                breaching Party (in the case of SGC) ceases to be a Supplier Group
                Company
                or (in the case of VGC) or ceases to be a Vodafone Group Company
                or
                Partner Network (in the case of VGC);
                or

            

    

     

    
      	
              23.1.4.  

            	
              anevent
                detailed in Clause A29
                (Force Majeure) gives rise to a right to terminate as described in Clause
                A29.

            

    

     

    
      	
              23.2.  

            	
              VGC
                shall be entitled to terminate the CoA, a Purchase Order, in whole
                or in
                part, as applicable, with immediate effect and without liability
                to SGC at
                any time if there is a Change in Control of SGC where “Control”
means, in
                relation to a body corporate, the power of a person to secure that
                its
                affairs are conducted in accordance with the wishes of that
                person:

            

    

     

    
      	
              23.2.1.  

            	
              by
                means of the holding of shares or the possession of voting power
                in or in
                relation to that or any other body corporate;
                or

            

    

     

    
      	
              23.2.2.  

            	
              by
                virtue of any powers conferred by the articles of association or
                any other
                document regulating that or any other body
                corporate,

            

    

     

    and
      a
      "Change in Control"
      shall occur if a person who controls any company or undertaking ceases to do
      so,
      or if another person acquires control of it.

     

    
      	
              23.3.  

            	
              VGC
                may terminate this CoA upon (12) Months’ notice in writing to SGC at any
                time during the Term, such notice to take effect on or after the
                1st
                anniversary of the Effective Date.

            

    

     

    
      	
              23.4.  

            	
              VGC
                shall have the right, without additional cost, to cancel a part or
                all of
                the Products and Services in a Purchase Order by giving written notice
                to
                SGC at any time up to ten (10) Business Days before the Delivery
                Date or
                under the circumstances otherwise specified in the
                CoA.

            

    

     

    
      	
              23.5.  

            	
              SGC
                shall, within twenty (20) Business Days of receiving written notice
                from
                Vodafone Group Services Limited or Supplier (whichever is earlier)
                informing it that either

            

    

     

    
      	
              23.5.1.  

            	
              VGC
                is no longer a Vodafone Group Company;
                or

            

    

     

    
      	
              23.5.2.  

            	
              where
                VGC is a Partner Network, VGC has ceased to be a Partner
                Network

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          24

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    terminate
      the CoA with immediate effect by giving written notice to VGC.  For
      the avoidance of doubt nothing in this Clause [23.5] shall
      preclude SGC from supplying the said former VGC in the future.

     

    
      	
              24.  

            	
              EFFECT
                OF TERMINATION

            

    

     

    
      	
              24.1.  

            	
              On
                termination of a CoA:

            

    

     

    
      	
              24.1.1.  

            	
              all
                materials of either a Party in the control of possession of the other
                Party that contain or bear the other Party’s Intellectual Property Rights
                or Confidential Information shall be destroyed or at the request
                of such
                Party returned to that Party; and

            

    

     

    
      	
              24.1.2.  

            	
              any
                Licenses granted to VGC pursuant to the CoA shall survive such
                termination, subject to payment in full for such Licenses;
                and

            

    

     

    
      	
              24.1.3.  

            	
              all
                other rights and obligations of the Parties under the CoA shall
                automatically terminate save for such rights and obligations as shall
                have
                accrued prior to such termination and any rights or obligations which
                expressly or by implication are intended to come into or continue
                in force
                on or after such termination pursuant to Clause A45
                (Survival).

            

    

     

    
      	
              24.2.  

            	
              Cancellation
                or Termination of a Purchase Order

            

    

     

    
      	
              24.2.1.  

            	
              On
                the cancellation or termination, with or without cause, of a Purchase
                Order by VGC all rights and obligations of the Parties under such
                Purchase
                Order shall automatically terminate save for such rights and obligations
                as shall have accrued prior to such cancellation or termination and
                any
                rights or obligations which expressly or by implication are intended
                to
                come into or continue in force on or after such cancellation or
                termination pursuant to Clause A45
                (Survival).

            

    

     

    
      	
              24.2.2.  

            	
              On
                receipt of a notice of cancellation or termination, in whole or part,
                of a
                Purchase Order SGC shall cease production and other preparations
                or work
                in relation to the subject matter of that notice. In full settlement
                and
                provided cancellation or termination is without cause, VGC shall
                pay the
                direct costs incurred by SGC and agreed by VGC that are the direct
                result
                of VGC’s cancellation or termination of the Purchase Order not to exceed
                the amount of the

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          25

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    cancelled
      or terminated Products and Services in the Purchase Order cancelled or
      terminated. For the purposes of this Clause, SGC shall be allowed to seek
      reimbursement from VGC for Services actually performed at the rate previously
      agreed between VGC and SGC.  In claiming any costs, SGC shall
      demonstrate to VGC’s reasonable satisfaction that the Products and Services
      cannot be used in fulfilling SGC’s obligations under other Purchase Orders
      issued by VGC or reasonably anticipated to be issued by VGC . SGC agrees to
      take
      all reasonable steps in order to minimize the costs associated with any
      cancellation or termination of a Purchase Order.

     

    
      	
              24.2.3.  

            	
              Termination
                of any Purchase Order with cause under Clauses 23.1.1 or 23.1.2 [as
                set
                out in this Clause 24.2 shall entitle
                VGC

            

    

     

    
      	
              24.2.3.1  

            	
               to
                seek  such damages as it shall be entitled under
                law.

            

    

     

    24.2.3.2
      to terminate any directly associated Purchase Order; and

    

     

    
      	
              24.3.  

            	
              24.2.3.2  Provided
                that VGC gives SGC written notice of a material breach of the agreement
                and SGC is unable to cure such breach within 90 days of notification,
                VGC
                shall be entitled to recover from SGC any losses it may suffer together
                with any additional expenditure incurred by VGC in obtaining work
                or
                products in replacement of the Services and Products to be provided
                by SGC
                hereunder. with cause under Clauses 23.1.1 or
                23.1.2

            

    

     

    
      	
              24.4.  

            	
              Disengagement
                Services

            

    

     

    
      	
              24.4.1.  

            	
              In
                the event of a termination or cancellation of certain Services where
                VGC
                reasonably requires that there be a staged transition of the Services
                to a
                third party supplier, SGC shall continue to supply such Services
                as
                requested by VGC and in accordance with the following (hereinafter
                referred to as the “Disengagement
                Services”):

            

    

     

    
      	
              24.4.2.  

            	
              Disengagement
                Services will be provided for a period of twelve (12) Months unless
                a
                shorter period is requested by VGC;

            

    

     

    
      	
              24.4.3.  

            	
              Disengagement
                Services will be provided on the same terms and conditions as the
                Services
                which they replace unless VGC requests a
                modified

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          26

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    scope
      of
      Services, in which case the Parties will agree on the Price and other terms
      and
      conditions; and

     

    
      	
              24.4.4.  

            	
              If
                requested by VGC, and at the cost of VGC, such cost to be agreed
                between
                the Parties, SGC shall prepare and VGC shall approve a disengagement
                plan,
                which shall include a detailed description of all Disengagement Services
                and handover of risk and
                responsibility.

            

    

     

    
      	
              25.  

            	
              LICENCES
                FOR SOFTWARE AND DOCUMENTATION

            

    

     

    
      	
              25.1.  

            	
              Upon
                delivery of Standard Software or Documentation to VGC, SGC shall
                grant (or
                procure the grant) to VGC of a license to use, copy and distribute
                Standard Software and any related Documentation in the course of
                its
                business and for purposes reasonably incidental thereto, on the following
                terms (the “Licence”):

            

    

     

    
      	
              25.1.1.  

            	
              non-exclusive
                and transferable to another VGC without additional charge or SGC
                consent;

            

    

     

    
      	
              25.1.2.  

            	
              royalty-free
                (except as otherwise set out in Schedule 4 (Global Price Book);
                and

            

    

     

    
      	
              25.1.3.  

            	
              irrevocable,
                subject to the termination provisions in Clause A23
                (Termination, Cancellation and
                Postponement).

            

    

     

    
      	
              25.2.  

            	
              The
                right to use Standard Software shall include any act that is reasonably
                incidental to such use, including the maintenance of a reasonable
                number
                of back-up or test copies of such Software (including for disaster
                recovery purposes).

            

    

     

    
      	
              25.3.  

            	
              VGC
                shall be entitled to release and sub-license Standard Software to
                any of
                VGC’s sub-contractors, Outsourcers, suppliers, distributors, subscribers
                or other persons in the course of VGC’s business and for purposes
                reasonably incidental thereto, provided that such sub-contractors,
                Outsourcers, suppliers, distributors, subscribers or other persons
                shall
                be obligated to comply with the terms of this Agreement as if they
                were
                the VGC and that VGC shall be responsible for such
                compliance.

            

    

     

    
      	
              25.4.  

            	
              At
                no additional charge, VGC may transfer Standard Software to a new
                platform
                and may transfer Standard Software to any other Vodafone Group Company
                or
                Partner Network that has entered into a
                CoA.

            

    

     

    
      	
              25.5.  

            	
              The
                use of Standard Software shall be restricted to the use of such Software
                in object code form (and after the occurrence of a “Release Event”, as
                such term is defined in the Source Code Escrow Agreement, in source
                code
                form).

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          27

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              25.6.  

            	
              VGC
                shall not have the right to adapt, reverse engineer, decompile,
                disassemble or modify Standard Software in whole or in part
                except:

            

    

     

    
      	
              25.6.1.  

            	
              as
                permitted by applicable law;

            

    

     

    
      	
              25.6.2.  

            	
              in
                the event of the occurrence of a “Release Event”;
                or

            

    

     

    
      	
              25.6.3.  

            	
              to
                the extent that such action is legitimately required for the purposes
                of
                integrating the operation of Standard Software with the operation
                of other
                software or systems used by VGC, in circumstances where SGC is not
                able or
                prepared to carry out such action at a reasonable commercial fee.

            

    

     

    
      	
              25.7.  

            	
              Licences
                for Non-Production Systems

            

    

     

    
      	
              25.7.1.  

            	
              SGC
                shall grant to VGC a Licence for any development and testing in
                non-production systems including test and reference systems (“Licences for Non-Production
                Systems”) at no additional
                charge.

            

    

     

    
      	
              25.7.2.  

            	
              The
                Licence for Non-Production Systems shall be a non-exclusive,
                non-transferable licence to use Standard
                Software.

            

    

     

    
      	
              25.7.3.  

            	
              Any
                Licence for Non-Production Systems is granted only for purposes of
                developing, prototyping and testing VGC applications that operate
                with
                Standard Software, and not for any other
                purpose.

            

    

     

    
      	
              25.7.4.  

            	
              Upon
                termination of the License for Non-Production Systems, VGC shall
                promptly
                return to SGC (or destroy at VGC’s option) all existing copies of Standard
                Software used for Non-Production
                Systems.

            

    

     

    
      	
              25.8.  

            	
              SGC
                shall provide to VGC Third Party Standard Software on the same terms
                as
                other Standard Software unless VGC requires
                otherwise.

            

    

     

    
      	
              25.9.  

            	
              SGC
                and its suppliers shall retain all title, copyright and other proprietary
                rights in the Standard Software. VGC does not acquire any rights,
                express
                or implied, in the Standard Software, other than those specified
                in this
                Agreement. VGC agrees
                that it
                will not publish externally any results of benchmark tests run on
                the
                Standard Software.

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          28

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              26.  

            	
              INTELLECTUAL
                PROPERTY RIGHTS

            

    

     

    
      	
              26.1.  

            	
              Subject
                to Clause 26.2, all Intellectual Property Rights in the Standard
                Software
                shall remain vested in SGC or its licensors and nothing in the CoA
                shall
                operate to assign any rights, title or interest in such Intellectual
                Property Rights to VGC (save as otherwise provided in the
                CoA).

            

    

     

    
      	
              26.2.  

            	
              All
                Intellectual Property Rights in any Requirement Specifications and
                any
                other material, documents and information provided by or on behalf
                of VGC
                to SGC under the CoA shall remain vested in VGC and nothing in the
                CoA,
                any Purchase Order or Work Order shall operate to assign any rights,
                title
                or interest in such Intellectual Property Rights to
                SGC.

            

    

     

    
      	
              27.  

            	
              INTELLECTUAL
                PROPERTY RIGHTS INDEMNITY

            

    

     

    
      	
              27.1.  

            	
              SGC
                shall fully indemnify and hold harmless each Indemnified Party against
                any
                Claims incurred or sustained by any or all of the Indemnified Parties
                as a
                result of or in connection with any claim or action made or brought
                by any
                person alleging that the supply, use, disposal, importation or possession
                of any Product, Service or any part of them infringes the rights
                (including Intellectual Property Rights) of any
                person.

            

    

     

    
      	
              27.2.  

            	
              Without
                limiting Clause 27.1, where any Claim causes VGC’s quiet enjoyment of any
                Product, Service or any part thereof to be disrupted or impaired,
                SGC
                shall at its own cost and expense and at its
                option:

            

    

     

    
      	
              27.2.1.  

            	
              procure
                for the benefit of VGC the right to continue to use and exploit the
                Product and Service in accordance with the CoA without disruption
                or
                impairment; or

            

    

     

    
      	
              27.2.2.  

            	
              modify
                the infringing Product or Service so that it becomes non-infringing
                provided that whenever practicable such modifications are in accordance
                with the specifications agreed between SGC and VGC and are made within
                a
                reasonable time; or

            

    

     

    
      	
              27.2.3.  

            	
              if
                the foregoing alternatives are not available on commercially reasonable
                terms, cancel all outstanding Purchase Orders for such Product or
                Service
                that is subject to the Claim and have any infringing Products in
                VGC’s
                inventory returned to SGC at SGC’s expense; SGC shall repay to VGC the
                full Price paid by VGC for any affected Product or Service, plus
                VAT, that
                is returned or is, in VGC’s opinion, not useable by
                VGC.

            

    

     

    
      	
              28.  

            	
              INDEMNIFICATION
                PROCEDURES

            

    

     

    
      	
              28.1.  

            	
              If
                a Claim is brought by a third party against VGC, its officers, directors,
                employees, agents, contractors, successors or assigns (each
                an

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          29

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    “Indemnified
      Party”) in
      respect of which indemnification is provided by SGC hereunder (each, an “Indemnified Third Party
      Claim”), VGC shall:

     

    
      	
              28.1.1.  

            	
              promptly
                notify SGC thereof and subject to VGC being reasonably satisfied
                at all
                times with SGC’s conduct of the defence to such Claim, VGC
                shall:

            

    

     

    
      	
              28.1.1.1.  

            	
              allow
                SGC to control the defence of such Claim;
                and

            

    

     

    
      	
              28.1.1.2.  

            	
              at
                the request and expense of SGC, provide SGC with reasonable assistance
                for
                the purpose of SGC defending any such Claim, provided always that
                SGC
                shall not admit or settle any such Claim without the prior written
                consent
                of each of the Indemnified Parties.

            

    

     

    
      	
              28.2.  

            	
              If  SGC  assumes
                the defence of an Indemnified Third Party Claim, SGC
                shall:

            

    

     

    
      	
              28.2.1.  

            	
              promptly
                and in any event within a period of 10 Business Days from VGC’s
                notification as set out in Clause 28.1, notify each of the Indemnified
                Parties that it has assumed such
                defence;

            

    

     

    
      	
              28.2.2.  

            	
              at
                all times have regard for the interests and reputation of VGC and
                each of
                the Indemnified Parties;

            

    

     

    
      	
              28.2.3.  

            	
              consult
                and keep each Indemnified Party informed, in relation to any negotiations,
                settlement or litigation; and

            

    

     

    
      	
              28.2.4.  

            	
              not,
                without the prior written consent of VGC and each Indemnified Party,
                enter
                into any settlement or compromise of the Indemnified Third Party
                Claim
                that involves a remedy other than the payment of money by
                SGC.

            

    

     

    
      	
              28.3.  

            	
              If
                SGC does not assume the defence of an Indemnified Third Party Claim
                in
                accordance with Clause 28.2.1, VGC may defend the Indemnified Third
                Party
                Claim in such manner as it may deem appropriate, and SGC shall indemnify
                VGC in relation to such Claim.

            

    

     

    
      	
              28.4.  

            	
              Failure
                by VGC to comply with the indemnification procedures in this Clause
                28
                does not relieve SGC of any obligation to indemnify an Indemnified
                Party
                in respect of any Indemnified Third Party
                Claim.

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          30

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              29.  

            	
              FORCE
                MAJEURE

            

    

     

    
      	
              29.1.  

            	
              Neither
                SGC nor VGC shall be liable for any delay in performing any of its
                obligations under the CoA, Purchase Order if such delay is caused
                by a
                Force Majeure. The Party affected by the Force Majeure shall be entitled
                (subject to giving the other Party full written particulars of the
                circumstances in question and to using reasonable endeavours to resume
                full performance without avoidable delay) to a reasonable extension
                of
                time for the performance of such
                obligations.

            

    

     

    
      	
              29.2.  

            	
              Notwithstanding
                the foregoing, neither Party shall be entitled to claim Force Majeure
                in
                the following cases:

            

    

     

    
      	
              29.2.1.  

            	
              any
                actions or circumstances caused by the respective Party's fault or
                negligence;

            

    

     

    
      	
              29.2.2.  

            	
              shortage
                or price increase of labour, materials or
                utilities;

            

    

     

    
      	
              29.2.3.  

            	
              delays
                by a Party’s sub-contractor unless the subcontractor’s delay is in itself
                caused by a Force Majeure;

            

    

     

    
      	
              29.2.4.  

            	
              the
                failure of SGC or third parties to develop technology that is necessary
                to
                supply, test or use the Products.

            

    

     

    
      	
              29.3.  

            	
              VGC
                may terminate the CoA or may terminate, in whole or in part, a Purchase
                Order affected by the Force Majeure by notice to SGC if the Force
                Majeure
                affecting SGC continues for thirty (30) consecutive days. SGC may
                terminate the CoA or may terminate, in whole or in part, a Purchase
                Order
                affected by the Force Majeure by notice to VGC if any Force Majeure
                affecting VGC continues for three (3)
                Months.

            

    

     

    
      	
              30.  

            	
              CORPORATE
                SOCIAL RESPONSIBILITY

            

    

     

    SGC
      shall
      comply and shall procure that its third party suppliers comply with the Vodafone
      Code of Ethical Purchasing as set out in Schedule 6 (Corporate Social
      Responsibility) as may be amended by VGC and notified to SGC from time to
      time.

     

    
      	
              31.  

            	
              CONFIDENTIALITY

            

    

     

    
      	
              31.1.  

            	
              In
                respect of any Confidential Information disclosed, furnished or made
                accessible by either Party (in this Clause 31, the "disclosing Party") to
                the other Party (in this Clause 31, the "receiving Party"), the
                receiving Party undertakes to the disclosing
                Party:

            

    

     

    
      	
              31.1.1.  

            	
              to
                keep confidential all Confidential Information disclosed by the disclosing
                Party;

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          31

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              31.1.2.  

            	
              to
                keep Confidential Information disclosed by the disclosing Party in
                a safe
                and secure place using reasonable technical and organisational security
                measures to prevent unauthorised access, destruction or
                loss;

            

    

     

    
      	
              31.1.3.  

            	
              not,
                without the prior written consent of the disclosing Party, to disclose
                Confidential Information disclosed by the disclosing Party in whole
                or in
                part to any other person save those of its employees, agents, advisers
                or
                sub-contractors who are involved in performing its obligations under
                the
                CoA and who need to know the Confidential Information in question
                for that
                purpose; and

            

    

     

    
      	
              31.1.4.  

            	
              to
                use the Confidential Information disclosed by the disclosing Party
                solely
                in connection with performing its obligations under the CoA and not
                for
                its own benefit or the benefit of any third
                party.

            

    

     

    
      	
              31.2.  

            	
              Each
                Party hereby undertakes to the other to make all relevant employees,
                agents, advisers and sub-contractors aware of the confidential nature
                of
                the Confidential Information disclosed by the disclosing Party and
                the
                provisions of this Clause 31 and, without limitation to this Clause
                31, to
                take all such steps as shall from time to time be necessary to ensure
                compliance by its employees, agents, advisers and sub-contractors
                with the
                provisions of this Clause 31.

            

    

     

    
      	
              31.3.  

            	
              The
                provisions of Clauses 31.1 and 31.2 shall not apply to any information
                which:

            

    

     

    
      	
              31.3.1.  

            	
              is
                or becomes public knowledge other than by breach of this Clause
                31;

            

    

     

    
      	
              31.3.2.  

            	
              is
                in the possession of the receiving Party without restriction in relation
                to disclosure before the date of receipt from the disclosing
                Party;

            

    

     

    
      	
              31.3.3.  

            	
               is
                received from a third party who lawfully acquired it and who is under
                no
                obligation restricting its disclosure;
                or

            

    

     

    
      	
              31.3.4.  

            	
              is
                independently developed without access to any Confidential Information
                disclosed by the disclosing Party.

            

    

     

    
      	
              31.4.  

            	
              The
                provisions of Clauses 31.1 and 31.2 shall not apply so as to prevent
                disclosure of Confidential Information by the receiving Party where
                and to
                the extent that such disclosure is required to be
                made:

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          32

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              31.4.1.  

            	
              by
                virtue of the regulations of the London Stock Exchange or New York
                Stock
                Exchange;

            

    

     

    
      	
              31.4.2.  

            	
              by
                any court or governmental or administrative authority competent to
                require
                the same; or

            

    

     

    
      	
              31.4.3.  

            	
              by
                any applicable law, legislation or
                regulation.

            

    

     

    
      	
              31.5.  

            	
              Nothing
                in this Clause 31 shall be deemed or construed to prevent VGC from
                disclosing any Confidential Information obtained from Supplier to
                Vodafone
                Group Plc, any other Vodafone Group Company or any Partner Network
                designated by VGSL, provided that VGC shall ensure that the relevant
                Vodafone Group Company observe confidentiality undertakings on
                substantially the same terms contained as in this Clause
                31.

            

    

     

    
      	
              32.  

            	
              ASSIGNMENT
                AND SUBCONTRACTING

            

    

     

    
      	
              32.1.  

            	
              SGC
                shall not sub-contract any of its obligations under this CoA, any
                Purchase
                Order or any part of any of them without the previous consent in
                writing
                of VGC (such consent not to be unreasonably withheld or delayed).
                Notwithstanding the foregoing, SGC shall be liable for the acts and
                omissions of any sub-contractor or third party supplier and shall
                remain
                solely liable to VGC for the performance of SGC’s obligations under this
                CoA.

            

    

     

    
      	
              32.2.  

            	
              SGC
                shall not assign, novate, transfer or otherwise dispose of or deal
                with
                this CoA, any Purchase Order, as applicable, or any part of any of
                them
                without the previous consent in writing of VGC, which may be withheld
                at
                VGC's sole discretion.

            

    

     

    
      	
              32.3.  

            	
              VGC
                shall be entitled to assign, novate, transfer, sub-contract or otherwise
                dispose of or deal with any or all of its rights or obligations under
                the
                CoA or any Purchase Order to any Vodafone Group
                Company.

            

    

     

    
      	
              33.  

            	
              CHANGE
                CONTROL PROCEDURE

            

    

     

    
      	
              33.1.  

            	
              Any
                proposed change to the terms of any Purchase Order or Work Order
                (each, a
                “Change”) shall
                be
                subject to the Change Control
                Procedure.

            

    

     

    
      	
              33.2.  

            	
              Neither
                VGC nor SGC shall be bound by any Change unless and until it is agreed
                in
                writing and signed by both Parties.

            

    

     

    
      	
              34.  

            	
              RIGHTS
                OF THIRD PARTIES

            

    

     

    Except
      in
      the case of any permitted assignment pursuant to this CoA, this CoA and any
      Purchase Order are made solely and specifically between and for the benefit
      of
      the Parties and are not intended to be for the benefit of and shall not be
      enforceable by any person who is not named at the date of this CoA as a Party
      to
      it, and neither Party may declare itself a trustee of the rights under it for
      the benefit of any third party.

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          33

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              35.  

            	
              PUBLICITY

            

    

     

    
      	
              35.1.  

            	
              Subject
                to Clause 31 (Confidentiality), SGC shall not, and shall procure
                that its
                employees, agents, advisers and sub-contractors shall not, make any
                announcement, or comment upon, or originate any publicity or press
                release
                or otherwise provide any information to any third party concerning
                this
                CoA and any Purchase Order or the matters contained in either of
                them
                without the prior written consent of VGC's duly authorised
                representative.

            

    

     

    
      	
              35.2.  

            	
              SGC
                shall not identify VGC or any other Vodafone Group Company or any
                of its
                or their affiliated persons in any promotional, advertising or other
                materials to be disseminated to the public or any third party or
                use any
                of the Vodafone Marks therein without the prior written consent of
                VGC.

            

    

     

    
      	
              36.  

            	
              NOTICES
                AND E-MAIL

            

    

     

    
      	
              36.1.  

            	
              All
                notices and other communications to be given under or in connection
                with
                this CoA and any Purchase Order shall be made in writing in English
                and
                shall be deemed to have been duly given: when delivered, if delivered
                by
                messenger during normal business hours on a normal business day of
                the
                recipient; when sent, if transmitted by facsimile transmission (receipt
                confirmed and with a confirmation copy sent by post) during normal
                business hours on a normal business day of the recipient; or on the
                fifth
                Business Day following posting, if posted by international first
                class or
                recorded post postage pre-paid, in each case addressed at such address
                as
                set forth in the CoA or to such other addresses as the Parties may
                from
                time to time notify pursuant to this
                Clause.

            

    

     

    
      	
              36.2.  

            	
              Routine
                communications relating to the performance of this CoA may be conducted
                by
                electronic mail.  However, the Parties agree that any
                communication by electronic mail shall not amount to notice in writing
                for
                the purposes of Clause 36.1 or to a written instrument for the purposes
                of
                Clause A42
                (Variation)
                and that any purported notice under, or variation of, this CoA by
                electronic mail shall have no
                effect.

            

    

     

    
      	
              37.  

            	
              ESCALATION

            

    

     

    
      	
              37.1.  

            	
              In
                the event of a dispute or difference between VGC and SGC arising
                out of or
                in connection with this CoA, either Party may call an extraordinary
                meeting of the Parties for the purpose of resolving such dispute
                or
                difference by service of not less than five (5) Business Days' written
                notice and each Party agrees to procure that its designated
                representative(s) from its management team shall attend all extraordinary
                meetings called in accordance with this Clause
                37.

            

    

     

    
      	
              37.2.  

            	
              The
                members of the relevant meeting in Clause 37.1 above shall endeavour
                in
                good faith to resolve disputes arising out of this CoA. If any dispute
                referred to a meeting is not resolved at that meeting then
                either

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          34

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    Party,
      by
      notice in writing to the other, may refer the dispute to designated senior
      officers who shall co-operate in good faith to resolve the dispute as amicably
      as possible within fourteen (14) Business Days of service of such notice. If
      such senior officers fail to resolve the dispute in the allotted time, then
      this
      dispute resolution procedure shall be deemed exhausted.

     

    
      	
              37.3.  

            	
              The
                above provisions shall be without prejudice to either Party’s other rights
                and remedies under the CoA or provided by law or in equity, including
                the
                right to seek injunctive relief or otherwise commence legal proceedings
                at
                any time.

            

    

     

    
      	
              37.4.  

            	
              VGC
                or SGC may request that an issue escalated under the CoA is also
                escalated
                to VGSL and Supplier if the issue affects more than one Vodafone
                Group
                Company or Supplier Group Company.

            

    

     

    
      	
              38.  

            	
              GOVERNING
                LAW

            

    

     

    
      	
              38.1.  

            	
              This
                CoA (including for the avoidance of doubt each Purchase Order and
                Work
                Order) shall be governed by and construed in accordance with the
                laws of
                England and Wales.

            

    

     

    
      	
              38.2.  

            	
              Each
                Party irrevocably submits to the exclusive jurisdiction of the courts
                of
                England and Wales over any claim, dispute or difference arising under
                or
                in connection with this CoA.

            

    

     

    
      	
              39.  

            	
              ENTIRE
                AGREEMENT

            

    

     

    The
      CoA
      (including for the avoidance of doubt each Purchase Order and Work Order)
      represent the entire understanding between the Parties in relation to its
      subject matter and supersedes all agreements and representations made by either
      Party, whether oral or written, in relation to the subject matter of the
      CoA.  This Clause 39 shall not affect either Party’s liability for
      fraud.

     

    
      	
              40.  

            	
              WAIVER

            

    

     

    
      	
              40.1.  

            	
              A
                waiver by a Party of a breach or a default under this CoA does not
                constitute a waiver of any other breach or default and shall not
                affect
                any other terms and conditions.

            

    

     

    
      	
              40.2.  

            	
              The
                rights and remedies provided by these terms and conditions are cumulative
                and (except as otherwise provided in the CoA) are not exclusive of
                any
                rights or remedies provided by law.

            

    

     

    
      	
              40.3.  

            	
              The
                failure to exercise or delay in exercising a right or remedy provided
                by
                this CoA or by law does not constitute a waiver of such right or
                remedy or
                a waiver of other rights or
                remedies.

            

    

     

    
      	
              40.4.  

            	
              A
                waiver of a breach of any of these terms and conditions or of a default
                under this CoA will not prevent a Party from subsequently requiring
                compliance with the waived obligation at a later
                time.

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          35

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              41.  

            	
              SEVERABILITY

            

    

     

    If
      any
      part of this CoA, any Purchase Order is held to be void, voidable, illegal
      or
      unenforceable, the validity or enforceability of the remainder of this CoA,
      Purchase Order shall not be affected. In such a case, the Parties shall
      endeavour to negotiate a substitute provision together with other relevant
      provisions that best reflects the economic intentions of the Parties whilst
      being enforceable, and shall execute all agreements and documents required
      in
      this connection.

     

    
      	
              42.  

            	
              VARIATION

            

    

     

    This
      CoA,
      any Purchase Order shall be capable of being varied only by a written instrument
      signed by hand in ink by a duly authorised officer or other authorised
      representative of each of the Parties. 

     

    
      	
              43.  

            	
              NO
                PARTNERSHIP/AGENCY

            

    

     

    Nothing
      in this CoA nor in any Purchase Order is intended to or shall operate to create
      a partnership or joint venture of any kind between the Parties, or to authorise
      either Party to act as agent for the other, and neither Party shall have
      authority to act in the name or on behalf of or otherwise to bind the other
      in
      any way (including but not limited to the making of any representation or
      warranty, the assumption of any obligation or liability and the exercise of
      any
      right or power).

     

    
      	
              44.  

            	
              HEALTH
                AND SAFETY

            

    

     

    
      	
              44.1.  

            	
              SGC
                agrees to observe, and procure that all its employees and agents
                or those
                of any its sub-contractors given access to any relevant premises
                of VGC
                comply with, the provisions of any applicable laws and regulations,
                including health and safety legislation, and with VGC’s health and safety
                policies as notified by VGC to SGC.

            

    

     

    
      	
              44.2.  

            	
              SGC
                shall indemnify and hold harmless VGC, its officers, employees, agents,
                successors and assigns in respect of any Claims made or brought against
                it
                by any person for death or personal injury arising from any act or
                omission by SGC.

            

    

     

    
      	
              45.  

            	
              SURVIVAL

            

    

     

    
      	
              45.1.  

            	
              Any
                termination of this CoA, any Purchase Order for any reason shall
                be
                without prejudice to VGC’s other rights and remedies under the CoA or
                provided by law or in equity. Any such termination shall not affect
                any
                accrued rights or liabilities of either Party nor the coming into
                force or
                the continuance in force of any provision of this CoA, or of a Purchase
                Order which is expressly or by implication intended to come into
                or
                continue in force on or after such termination including  AClauses
                [ ]
                (Definitions), [  ] (Special Conditions), [  ]
                (Warranties), [  ] (Intellectual Property Rights),
                [  ] (Intellectual Property Rights Indemnity), [  ]
                Indemnification Procedures, [  ] (Confidentiality),
                [  ] (Rights of Third Parties), [  ] (Publicity),
                [  ] (Governing Law), [  ] (Entire Agreement),
                [  ] (Waiver),
                [  ]

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          36

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    (Severability),
      [  ] (Survival), [  ] (Insurance), [  ] (Further
      Assurance), [  ] (Audits), [  ] (Limitation of Liability),
      [  ] (Inadequacy of Damages), [  ] (Interpretation) and
      [  ] (Order of Precedence).

     

    
      	
              46.  

            	
              INSURANCE

            

    

     

    
      	
              46.1.  

            	
              SGC
                shall insure against all risks and liabilities to which SGC is subject
                under this CoA and as is prudent in the circumstances, including
                loss or
                damage whether caused by negligence, insolvency, fraud or otherwise
                by any
                of SGC, its agents, employees or sub-contractors. SGC shall notify
                its
                insurers in writing of all insurance claims as soon as reasonably
                practicable after the relevant loss or
                damage.

            

    

     

    
      	
              46.2.  

            	
              Without
                prejudice to Clause 46.1 above, SGC agrees that it shall effect and
                maintain in force with a reputable insurance company at least the
                following insurance policies in the following
                amounts:

            

    

     

    
      	
              46.2.1.  

            	
              Public
                and Product Liability Insurance Policy in respect of loss or injury
                to
                persons or damage to tangible property  with a limit of not less
                than five million pounds sterling (£5,000,000) per
                claim;

            

    

     

    
      	
              46.2.2.  

            	
              Professional
                Indemnity (errors and omissions) Insurance Policy in respect of its
                undertakings and obligations under this CoA with a limit of not less
                than
                five million pounds sterling (£5,000,000) per claim;
                and

            

    

     

    
      	
              46.2.3.  

            	
              such
                other insurances required by law (including, without limitation,
                Motor and
                Employers Liability) with a limit in each case of not less than five
                million pounds sterling (£5,000,000) per claim or such other greater
                amounts as required by law.

            

    

     

    
      	
              46.3.  

            	
              SGC
                shall ensure that the appropriate noting of VGC’s interests have been
                recorded on the policies or a generic interest clause has been included
                together with a waiver of subrogation and any right of contribution
                in
                favour of VGC and shall on the written request of VGC from time to
                time
                provide a certificate signed by SGC’s insurer or such insurer’s appointed
                agents confirming that SGC is insured in accordance with this Clause
                46 in
                a form satisfactory to VGC. On the renewal of each policy, SGC shall
                promptly send a copy of the premium receipt to
                VGC.

            

    

     

    
      	
              46.4.  

            	
              SGC
                shall, during the Term, and for a period of six (6) years
                thereafter:

            

    

     

    
      	
              46.4.1.  

            	
              administer
                the insurance policies and SGC's relationship with its insurers in
                accordance with good industry practice and at all times to preserve
                the
                benefits for VGC set out in this
                CoA;

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          37

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              46.4.2.  

            	
              do
                nothing to invalidate any such insurance policy or to prejudice VGC’s
                entitlement thereunder; and

            

    

     

    
      	
              46.4.3.  

            	
              procure
                that the terms of such policies shall not be altered in such a way
                as to
                diminish the benefit to VGC of the policies as provided at the date
                of
                this CoA without VGC’s prior written
                consent.

            

    

     

    
      	
              46.5.  

            	
              SGC
                shall give immediate notice to VGC and any other insured parties
                in the
                event of a cancellation or variation in the terms of cover or any
                material
                adverse change in SGC’s insurance arrangements that may affect VGC or any
                other insured party’s interest.

            

    

     

    
      	
              47.  

            	
              FURTHER
                ASSURANCE

            

    

     

    SGC
      shall
      use all reasonable endeavours to do or procure to be done all such further
      acts
      and things and execute or procure the execution of all such other documents
      as
      VGC may from time to time reasonably require for the purpose of giving VGC
      the
      full benefit of the provisions of this CoA.

     

    
      	
              48.  

            	
              AUDIT

            

    

     

    
      	
              48.1.  

            	
              SGC
                shall keep or cause to be kept full and accurate records (in this
                Clause,
                the "Records") of
                all processes, personnel, equipment and premises used in performing
                its
                obligations in connection with this CoA and each Purchase Order for
                a
                period of six (6) years, except where the retention of such records
                would
                be in breach of any applicable legal or regulatory
                restrictions.

            

    

     

    
      	
              48.2.  

            	
              SGC
                shall grant to VGC, any auditors of VGC and their respective authorised
                agents the right of reasonable access to the records (including a
                right to
                make copies thereof at cost), any equipment or premises and shall
                provide
                all reasonable assistance at all times during the currency of this
                CoA for
                the purposes of carrying out an audit of SGC’s compliance with the CoA as
                well as an audit of all activities, performance, security and integrity
                in
                connection therewith. SGC shall be repaid any reasonable expenses
                incurred
                in giving any such reasonable assistance pursuant to this
                Clause.

            

    

     

    
      	
              48.3.  

            	
              SGC
                may request that VGC’s independent, external auditors conduct an audit and
                that an officer of said firm provide a signed certificate verifying
                that
                the Software Products and Services are being used pursuant to the
                provisions of this Agreement.  In the event that said firm does not
                provide such a certification, then SGC may conduct the audit itself,
                observing a reasonable notice period to VGC.  Any such audit shall be
                conducted during regular business hours at VGC's facilities and shall
                not
                unreasonably interfere with VGC's business activities.  SGC agrees
                that its personnel will comply with VGC's reasonable security and
                confidentiality requirements during the audit.  If an audit reveals
                that VGC has underpaid fees to SGC, VGC shall be invoiced directly
                for
                such

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          38

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    underpaid
      fees.  If the underpaid fees are in excess of five percent (5%) of the
      aggregate license fees paid to SGC, then VGC shall pay SGC’s reasonable costs of
      conducting the audit.

     

    

     

    
      	
              49.  

            	
              LIMITATION
                OF LIABILITY

            

    

     

    
      	
              49.1.  

            	
              Except
                as set forth in Clause 49.3, the maximum liability of either Party
                to the
                other excluding any liquidated damages paid or payable under or in
                connection with the CoA , whether based on contract, tort, negligence
                or
                otherwise shall be limited to:

            

    

     

    
      	
              49.1.1.  

            	
              £10
                million in any period of twelve (12) Months, such period to commence
                in
                each case on the date of the incident, or the first or the series
                of
                incidents, giving rise to the Claim in question;
                or

            

    

     

    
      	
              49.1.2.  

            	
              the
                aggregate face value of all Purchase Orders placed by VGC during
                the
                twelve (12) Months preceding the incident or first in a series of
                incidents, giving rise to the Claim in
                question.

            

    

     

    
      whichever
        is the greater.

    

     

    
      	
              49.2.  

            	
              Except
                as set forth in Clauses 49.3, neither Party shall be liable for any
                indirect or consequential damages or losses, including loss of profits
                and
                loss of data where such damages or losses are determined to be an
                indirect
                or consequential damage or loss.

            

    

     

    
      	
              49.3.  

            	
              Nothing
                in the CoA excludes or limits liability for Claims with respect to
                the
                following:

            

    

     

    
      	
              49.3.1.  

            	
              SGC’s
                liability under any relevant product liability legislation (e.g.
                General
                Product Safety Directive
                2001/95/EC);

            

    

     

    
      	
              49.3.2.  

            	
              SGC’s
                liability for death or personal injury resulting from the supply
                or use of
                the Products or Services;

            

    

     

    
      	
              49.3.3.  

            	
              a
                Party’s liability under Clauses [A]
                (Data Protection and Law
                Enforcement), 25 (Licenses for Software and Documentation), [A]
                (Intellectual Property
                Rights Indemnity) and [A]
                (Confidentiality);

            

    

     

    
      	
              49.3.4.  

            	
              SGC’s
                liability for physical damage to VGC’s
                property;

            

    

     

    
      	
              49.3.5.  

            	
              a
                Party’s liability for fraudulent misrepresentation or for death or
                personal injury resulting from its negligence;
                and

            

    

     

    
      	
              49.3.6.  

            	
              any
                other liability to the extent that such liability may not be excluded
                or
                restricted by law.

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          39

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              50.  

            	
              INADEQUACY
                OF DAMAGES

            

    

     

    Without
      prejudice to Clause 31 (Confidentiality) or to any other rights or remedies
      that
      VGC may have, SGC acknowledges and agrees that damages alone would not be an
      adequate remedy for breach by SGC of the provisions of this CoA, a Purchase
      Order and that accordingly VGC shall be entitled, without proof of special
      damages, to the remedies of injunction, specific performance or other equitable
      relief for any threatened or actual breach of the provisions of this CoA, a
      Purchase Order.

     

    
      	
              51.  

            	
              INTERPRETATION

            

    

     

    In
      this
      CoA (except where the context otherwise requires):

     

    
      	
              51.1.  

            	
              the
                Schedules (as amended from time to time) shall form part of this
                CoA and
                shall be construed and shall have the same force and effect as if
                they
                were expressly set out in the main body of this CoA and any reference
                to
                this CoA includes the Schedules;

            

    

     

    
      	
              51.2.  

            	
              references
                in this CoA to a Schedule shall be deemed to be a reference to the
                current
                version of the relevant Schedule to this
                CoA;

            

    

     

    
      	
              51.3.  

            	
              the
                index and headings in this CoA are for ease of reference only and
                shall
                not constitute a part of this CoA for any purpose or affect its
                interpretation;

            

    

     

    
      	
              51.4.  

            	
              use
                of the singular includes the plural and vice
                versa;

            

    

     

    
      	
              51.5.  

            	
              use
                of any gender includes the other
                genders;

            

    

     

    
      	
              51.6.  

            	
              any
                reference to a directive, statute, statutory provision or subordinate
                legislation ("legislation") shall
                (except where the context otherwise requires) be construed as referring
                to
                such legislation as amended and in force from time to time and to
                any
                legislation which re-enacts or consolidates (with or without modification)
                any such legislation; and

            

    

     

    
      	
              51.7.  

            	
              any
                phrase introduced by the terms "including", "include",
                "in particular" or any
                similar expression shall be construed as illustrative and shall not
                limit
                the sense of the words preceding those
                terms.

            

    

     

    
      	
              52.  

            	
              ORDER
                OF PRECEDENCE

            

    

     

    In
      the
      event of any inconsistency between the CoA, its Schedules and any Purchase
      Order, the documents shall prevail in the following order of precedence (highest
      level of precedence first, lowest last):

     

    
      	
              52.1.  

            	
              Body
                of the CoA;

            

    

     

    
      	
              52.2.  

            	
              Schedule
                1 (Special Conditions);

            

    

     

    
      	
              52.3.  

            	
              Schedule
                2 (GTCs);

            

    

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          40

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
            AMENDED.

        

      

    

    

    

     

    
      	
              52.4.  

            	
              All
                other Global Attachments;

            

    

     

    
      	
              52.5.  

            	
              Local
                Attachments; and

            

    

     

    
      	
              52.6.  

            	
              Purchase
                Orders.

            

    

     

    
      	
              53.  

            	
              COUNTERPARTS

            

    

     

    This
      CoA
      may be executed in any number of counterparts, each of which, when executed
      and
      delivered, shall be an original, and all the counterparts together shall
      constitute one and the same instrument.

    
      
        

      

    

    
      
        
          GTCs
            for HW, SW, and Services (Schedule 2 to CoA)

        

        
          41

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    SCHEDULE 3

     

    GLOBAL
      PRODUCTS AND SERVICES

     

    [Note:
      To
      be used to describe Product requirements, such as Specifications, Acceptance
      Testing etc.]

     

    AExample

     

    Part
      1                      
-            Brief
      description of the Products and Services

    Chordiant
      Decision Management Suite (by part and version number):

    
      	
              ·  

            	
              Chordiant
                Predictive Analytics Director;
                6100-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Strategy Director; 6101-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Decision Monitor; 6104-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Real-Time Decisioning Services;
                6102-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Database Decisioning Services;
                6103-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Recommendation Advisor; 6108-6.0.3

            

    

    
      	
              ·  

            	
              Chordiant
                Adaptive Decisioning Services;
                6106-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Data Preparation Director;
                6105-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Real-Time Proposition Monitoring;
                6111-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Interaction Services - 6107-6.0.2

            

    

    
      	
              ·  

            	
              Chordiant
                Campaign Management Decisioning Service -
                6109-6.0.2

            

    

    
      	
              2.  

            	
              Chordiant
                Marketing Director Suite:

            

    

    
      	
              ·  

            	
              Chordiant
                Marketing Director: 6.2.0.3

            

    

    
      	
              ·  

            	
              Chordiant
                Online Marketing Director; 6.2.0.3

            

    

    
      	
              ·  

            	
              Chordiant
                Mobile Marketing Director; 6.2.0.3

            

    

    

    The
      Standard Software listed above shall be deemed accepted upon
      delivery.

    At
      VGSL’s
      request, Supplier will extend the license to the Standard Software to any other
      operating system supported by Supplier so long as VGSL is currently covered
      by
      Maintenance Services with respect to such Software and VGSL’s usage of the
      Standard Software does not exceed the scope of the license it acquired for
      use.

     

     

    

     

    Part
      2                      
-           
Specification for the Products and Services

    
      
        

      

    

    
      
        
          CHRD
            SLSA

        

        
          Confidential                                                          
42
            of 125

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    Documentation
      as annexed to the GFA at Annex 3.

    
      
        

      

    

    
      
        
          CHRD
            SLSA

        

        
          Confidential                                                    Page
            43 of
            125

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    

     

    

    [
      * 2 pages of text omitted
]

    
      
        

      

    

    
      
        
          CHRD
            SLSA

        

        
          Confidential                                                    Page
            44 of
            125

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    SCHEDULE
      4

     

    GLOBAL
      SERVICES

     

    

     

    [Note:
      To
      be used to describe any services, including support and maintenance, development
      or consultancy services to be provided by SGC.]

    

    

    4-xx           
      Global Support and Maintenance Services

    1.  Support
      and Maintenance
      Services

    SGC
      shall
      provide Support and Maintenance Services as specified in Exhibit A below. Upon expiration of
      the
      initial support period (which ends on April 1st
      2010),
      and upon expiration of each subsequent support period, a new support period
      shall automatically begin for a consecutive twelve (12) month term (“Renewal
      Period”) so long as (i) VGC pays the Support Fee within thirty (60) days of
      invoice by SGC; and (ii) SGC is still offering Support on such Standard
      Software.  The initial annual Support Fee shall be stated in Schedule
      5.  The annual Support Fee for any Renewal Period shall not be less
      than the initial annual Support Fee and shall not increase from the previous
      year’s Support Fee by more than the percentage increase in the United Kingdom
      Retail Price Index (National Statistics Office) for the previous
      year.  Once Support and Maintenance has been terminated by VGC or SGC,
      it can be reinstated only if SGC is still offering Support for such Standard
      Software and VGC pays a fee equal to the support fees that would have been
      payable for the period of time during which Support and Maintenance was
      terminated for such Standard Software.

    

    10 2.                                     
      Definitions.

    (a) “Designated
      Contact” mean the
      contact person or group designated by VGC and agreed to by SGC who will
      coordinate all Support requests to SGC.

     

    (b)  “Error”
      means a
      reproducible defect in the Standard Software or Documentation when operated
      on a
      Supported Environment which causes the Standard Software not to operate
      substantially in accordance with the Documentation.

     

    (c)  “Resolution”
      means a
      modification or workaround to the Standard Software and/or Documentation
      provided by SGC to VGC intended to resolve an Error.

    

    (d) “Support
      Hours” means the
      support hours specified on Schedule A for either the Standard Support period
      or
      the Premier Support period, as specified on the particular Order
      Form.

     

    (e)  “Supported
      Environment”
      for any SGC Marketing product(s) Software means the configurations of hardware
      and RDBMS (relational database) platforms and releases of the Software on which
      the Documentation states the Standard Software can run and for which SGC
      provides Support.  Supported Environment for any other SGC product
      Software means the hardware and operating system platform which SGC provides
      Support for its VGC base.

     

    (f) “Update”
      means a subsequent
      release of the Software that SGC generally makes available for Standard Software
      licensees at no additional license fee.  Update shall not include any
      release, option or future product that SGC licenses separately.  SGC
      will provide Updates for the Standard Software as and when developed for general
      release in SGC’s sole discretion.

     

    
      
        

      

    

    
      
        
          CHRD
            SLSA

        

        
          Confidential                                                      Page
            45 of
            125

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    (g) “URN”
      means a “unique reference number” which
      uniquely identifies (is the key of) the primary entity in a particular VGC
      database, whether that primary entity represents a VGC, prospect, or any other
      data.

     

    3.  Support
      Levels.

    

    VGCs
      that
      have licensed the Standard Software shall be entitled to install and operate
      the
      components of the Standard Software solely for the following number Users and
      shall be entitled to the following level of Support so long as it is receiving
      Maintenance Services.

    
      	
              
              

              SGC
                Decision Management Suite

            	
              
              

              Users

            	
              
              

              Support
                Level

            
	
              
              

              SGC
                Predictive Analytics Director

            	
              
              

              Unlimited
                nr of client systems

            	
              
              

              Standard
                (9x5)

            
	
              
              

              SGC
                Strategy Director

            	
              
              

              Unlimited
                nr of client systems

            	
              
              

              Standard
                (9x5)

            
	
              
              

              SGC
                Decision Monitor

            	
              
              

              Unlimited
                nr of client systems

            	
              
              

              Standard
                (9x5)

            
	
              
              

              SGC
                Database Decisioning Services

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              SGC
                Real-Time Decisioning Services

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Premium
                (24x7)

            
	
              
              

              SGC
                Recommendation Advisor

            	
              
              

              Unlimited
                nr of seats

            	
              
              

              Premium
                (24x7)

            
	
              
              

              SGC
                Interaction Services

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Premium
                (24x7)

            
	
              
              

              SGC
                Campaign Management Decisioning Service

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              SGC
                Adaptive Decisioning Services

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Premium
                (24x7)

            
	
              
              

              SGC
                Data Preparation Director

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              SGC
                Real-Time Proposition Monitoring

            	
              
              

              Unlimited
                nr of CPUs

            	
              
              

              Premium
                (24x7)

            

    

    
      
        

      

    

    
      
        
          CHRD
            SLSA

        

        
          Confidential                                                     Page
            46 of 125

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              
              

              SGC
                Marketing Director Suite

            	
              
              

              Unit

            	
              
              

              Support
                Level

            
	
              
              

              SGC
                Marketing Director

            	
              
              

              Unlimited
                nr of URNs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              SGC
                OnLine Marketing Director

            	
              
              

              Unlimited
                nr of URNs

            	
              
              

              Standard
                (9x5)

            
	
              
              

              SGC
                Mobile Marketing Director

            	
              
              

              Unlimited
                nr of URNs

            	
              
              

              Standard
                (9x5)

            

    

    
      
        

      

    

    
      
        
          CHRD
            SLSA

        

        
          Confidential                                                     Page
            47 of 125

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

     

    

    Exhibit
      A - General Support Terms:

    

    1.
      Technical Support

    

    SGC
      shall
      make available to VGC Support and Maintenance services in the form of access
      via
      e-mail, web and telephone (telephone access during the Support Hours only)
in English to the
      Designated Contacts and/or via the support website for technical information,
      technical advice and technical consultation regarding VGC’s use of the Standard
      Software.

    

    Scope
      of
      Support.  The primary objective of SGC Product Support is to
      assist VGC in maintaining and/or regaining an operational state by commercially
      reasonable efforts.  The secondary objective of Support and
      Maintenance is to provide in due course the correction of any underlying
      Errors.

    

     Product
      Support will include the following:

    

    (a)
      Problem Prevention

    
      	
              1.  

            	
              Notification
                of availability of generally available patches and
                releases.

            

    

    

    (b)
      Problem Identification

    
      	
              1.  

            	
              Clarification
                of SGC error messages,

            

    

    
      	
              2.  

            	
              Assistance
                in identifying and verifying the causes of suspected Errors,
                and;

            

    

    
      	
              3.  

            	
              Advice
                on bypassing identified Errors (providing workarounds) in the Standard
                Software.

            

    

    

    (c)
      Problem Resolution

    
      	
              1.  

            	
              Reporting
                and tracking product defects and enhancement
                requests,

            

    

    
      	
              2.  

            	
              Resolution
                of defects via workaround, maintenance release or in exceptional
                circumstances emergency patches,
                and

            

    

    
      	
              3.  

            	
              Notification
                of status on issues, including escalation when
                required.

            

    

    

    Resolution
      of
      Errors.  SGC will endeavor to provide an initial response
      acknowledging Errors reported by VGC in accordance with the priority levels
      and
      response times set out in Schedule A.  SGC will acknowledge each VGC
      report of a case by written acknowledgment setting forth a Case Problem Number
      for use by VGC and SGC in all correspondence relating to such
      case.  Thereafter, SGC shall use commercially reasonable efforts to
      provide a Resolution.

    

    Exceptions.
SGC
      shall have no
      responsibility to fix any Errors arising out of or related to the following
      causes:

    
      	
              a.  

            	
              any
                modifications or enhancements made by VGC to the Software or the
                application specific environment, unless such modifications or
                enhancements are specifically approved in writing by SGC Product
                Support;
                this includes but is not limited
                to;

            

    

    
      	
               

            	
              -
                location of binaries 

            

    

    
      	
               

            	
              -
                scripts provided by SGC 

            

    

    
      	
               

            	
              -
                any application specific object (e.g., table, view, index, trigger)
                

            

    

    
      	
               

            	
              -
                any application specific operating system permissions or role privileges
                

            

    

    
      
        

      

    

    
      
        
          Services
            (Schedule 4 to CoA)

        

        
          48

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              b.  

            	
              Any
                modification or combination of the Software (in whole or in part),
                including without limitation any portions of the Software code or
                Source
                Code customized by VGC that is not part of the unmodified Software
                delivered by SGC or for which SGC has not received and acknowledged
                receipt of the source code and agreed to
                Support.

            

    

    
      	
              c.  

            	
              Use
                of the Software in an environment other than a Supported
                Environment.

            

    

    
      	
              d.  

            	
              Accident;
                electrical or electromagnetic stress; neglect; misuse; failure or
                fluctuation of electric power, failure of media not furnished by
                SGC;
                operation of the Software with other media and hardware, software
                or
                telecommunication equipment or software; or causes other than ordinary
                use.

            

    

    

     

    Extended
      Support
      Policy.  Supplier will support each agrees
      endeavor to adequately train and obtain “SGC certification” for, and forward to
      SGC the names and contact details of the Designated Support
      Contacts.

    

    VGC
      agrees to maintain procedures
      to facilitate reconstruction of any lost or altered files, data or
      programs and VGC agrees that SGC will not be responsible under any
      circumstances for any consequences arising from lost or corrupted data, files
      or
      programs.  VGC is solely responsible for carrying out all necessary
      backup procedures for its own benefit, to ensure that data integrity can be
      maintained in the event of loss of data for any reason and that VGC programs
      can
      be restored.

    

    VGC
      agrees to be solely responsible for the security of its confidential
      and
      proprietary information, and shall not disclose such information to SGC
      except on a ‘need to know’ basis for the purposes of SGC’s performance
      Support.

    

    VGC
      agrees to notify SGC Product
      Support promptly of any malfunction of the Standard
      Software.

    current
      version or Update of the Software for a
      period of two years, beginning on the date the Update is made generally
      available (“GA”) to Supplier’s customers.  For a period of one year
      thereafter, Supplier will continue to support such Update using commercially
      reasonably efforts without reference to the response times set forth in Schedule
      A.  Notwithstanding its actual GA date, the initial version of the Standard
      Software that is initially delivered to VGC will be supported for a period
      of
      two years from the date of delivery and then one additional year
      thereafter.   Additionally, Supplier will support each current
      version or Update of the Software for a period of [ * ]
      after the date that the
      subsequent Update is made generally available (“GA”) to Supplier’s customers, in
      accordance with the provisions of Schedule 4.
       

      Notwithstanding
        the foregoing, Chordiant will exercise reasonable efforts to provide diagnostic
        information to assist Customer in identifying the cause of any such
        Errors.

      

      

      2.
        VGC
        Responsibilities

      

      VGC
        agrees to:

      (i)
        Provide SGC with remote
        access to VGC’s Standard Software during the term of this Agreement via
        an electronic link; and

      (ii)
        Provide any reasonable
        assistance that SGC may require from the Designated Contacts and other
        appropriate VGC representatives (e.g. network administrator, as the case
        may be) to enable SGC to provide VGC with Support; and

      (iii)
        Establish and maintain the conditions of the Supported Environment in compliance with SGC Certified
        Matrix
        and Technical Stack developed for the installed release or any
        environmental operating ranges specified by the manufacturers of the components
        of the Designated Center. Any deviation from this Support Environment voids
        all
        Resolutions within the timeframe set forth in Exhibit A.

      In
        the
        event that VGC fails to comply with the above and this necessitates on-site
        attendance and/or the provision of additional SGC Services, VGC agrees to
        pay
        SGC for any time and expenses associated with such services at SGC’s
        then-current time and materials services rates.

      

      VGC
        agrees to designate appropriately qualified and trained personnel
        to be
        the Designated Contacts, and only those individuals shall request Support
        services.  VGC

      
        
          

        

      

      
        
          
            Services
              (Schedule 4
              to CoA)

          

          
            49

            
              

            

          

          
            
            

            [
              * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,
              MARKED BY
              BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
              AND EXCHANGE
              COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF
              1934, AS
              AMENDED.

          

        

      

      

    

    

      agrees
        endeavor to adequately train and obtain “SGC certification” for, and forward to
        SGC the names and contact details of the Designated Support
        Contacts.

       

      VGC
        agrees to maintain procedures
        to facilitate reconstruction of any lost or altered files, data or
        programs and VGC agrees that SGC will not be responsible under any
        circumstances for any consequences arising from lost or corrupted data, files
        or
        programs.  VGC is solely responsible for carrying out all necessary
        backup procedures for its own benefit, to ensure that data integrity can
        be
        maintained in the event of loss of data for any reason and that VGC programs
        can
        be restored.

       

      VGC
        agrees to be solely responsible for the security
        of its confidential and proprietary information, and shall not disclose
        such information to SGC except on a ‘need to know’ basis for the purposes of
        SGC’s performance Support.

       

      VGC
        agrees to notify
        SGC Product Support promptly of any malfunction of the Standard
        Software.

       

      VGC
        agrees to provide SGC with access
        to and use of such of VGC’s information and facilities reasonably
        necessary to service the Standard Software including, but not limited to,
        an
        accurate description of the Designated Center and the current Supported
        Environment, the problem being reported, the transactions and any error
        messages, along with screenshots and log files.

       

      VGC
        agrees to install
        the Current Release as soon as reasonably practicable, and in any event
        within the timeframe set out in SGC’s release policy in effect on the date
        Support is ordered.

       

    

    

    
      
        

      

    

    
      
        
          Services
            (Schedule 4 to CoA)

        

        
          50

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    SCHEDULE
      A

     

     

    1. PRIORITY
      LEVELS AND RESPONSE TIMES:

     

    
      	
              
              

              Priority
                Level

            	
              
              

              Definition

            	
              Response
                Time to Designated Support Contact

            
	
              
              

              PRIO-1

              “Production
                down” Problem

            	
              
              

              Business
                impact is immediate and major, i.e. no material benefit from the
                Standard
                Software.

              The
                Standard Software in a mission critical
                “live production” environment is inoperative, renders the system on
                which it is installed inoperable or suffers a major performance
                degradation.  No workaround
                is available.

              
              

            	
              
              

              1
                business hour

            
	
              
              

              PRIO-2

              Mission
                critical

              Problem

            	
              
              

              Business
                impact is immediate and significant.

              The
                Standard Software in a production or a mission critical development
                environment is inoperative or fails to satisfy critical functional, operational or
                performance specifications.

              
              

            	
              
              

              4
                business hours

            
	
              
              

              PRIO-3

              Serious

              Problem

            	
              
              

              Business
                impact is high but not widespread.

              An
                aspect of the software is inoperative, causes or results in substandard
                or
                erratic performance, but nonetheless the software operates substantially
                in accordance with specifications.

              
              

            	
              
              

              1
                business day

            
	
              
              

              PRIO-4

              Problem

              
              

            	
              
              

              Business
                impact is moderate or small.

              No aspect
                of the software is inoperative.  The software operates in
                accordance with specifications.

              
              

            	
              
              

              5
                business days

            

    

    

      

    

    NORMAL
      SUPPORT
      HOURS

    VGC
      shall
      report all problems to the closest support center.  SGC reserves the
      right to alter the location(s) of its support centers, and shall inform VGC
      in
      writing should this occur.  SGC provides Product Support from the
      following support centers during their respective normal business hours as
      set
      out below:

    
      	
               

            	
              EMEA

            	
              08:30
                – 17:30 UK Time {Greenwich Mean Time (GMT) or British Summer Time (BST),
                as applicable} 

            

    

    
      
        

      

    

    
      
        
          Services
            (Schedule 4
            to CoA)

        

        
          51

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              Americas

            	
              08:30
                – 17:30 Pacific Std Time (i.e. 16:30 – 01:30 UK Time, subject to time
                changes) 

            

    

    
      	
              Asia/Pacific

            	
              08:30
                – 17:30 Melbourne, Australia (i.e.23:30 – 08:30 UK Time, subject to time
                changes) 

            

    

    

    
      	
               

            	
              “Standard
                Support”
                means calls
                from any
                priority level which are supported from Monday to Friday during the
                normal
                business hours for VGC’s closest support center as set out above.
                

            

    

    “Premier
      Support” means, in
      addition to Standard Support, VGC will receive extended 24 Hour support in
      respect of PRIO-1 CALLS FOR SGC’S PLATFORM AND FOUNDATION SOFTWARE ONLY from
      Monday to Sunday inclusive as noted below (not available for Application
      Products).

    

    Notes:

    
      	
              (a)  

            	
              PRIO-1
                and PRIO – 2 calls are to be placed by phone andfollowed
                up with a detailed
                explanation of the problem via e-mail
                to the
                respective regional support center.

            

    

    
      	
              (b)  

            	
              VGC
                may categorize the priority level in accordance with the above definitions
                when reporting the problem.

            

    

    

    

    EXTENDED
      24-HOUR
      SUPPORT

    
      	
               

            	
              (Applicable
                to
                ‘PRIO-1’ Calls on SGC’s Platform and Foundation software
                only)

            

    

    

    In
      respect of “Standard Support” and “Premier Support” for Platform and Foundation
      software products only, SGC extends support hours for the applicable days to
      24
      hours per applicable day for
      PRIO-1 calls only.  Outside the normal regional support hours,
      SGC will decide if the Prio-1 Case continues to be handled by the EMEA support
      center, or if the PRIO -1 call will “follow the sun” to another support center
      and will, if required, initiate a page to 24-hour on-call Product Support
      engineers.

    Please
      note that the extended 24 hour support in respect of ‘PRIO-1’ calls set forth
      above is only available and applicable to VGCs licensing SGC’s platform or
      foundation software, and does not apply to any other SGC application software,
      including but not limited to SGC’s Marketing Director or Selling Director
      product suites.

    

    

    
      	
               

            	
              4-xx

            

    

    

        4-xx

    
      
        

      

    

    
      
        
          Services
            (Schedule 4 to CoA)

        

        
          52

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    SCHEDULE
      4-XX

    

    WORKER
      REGULATIONS

    

     

    Worker
      Regulations

     

    
      	
              1.1  

            	
              It
                is the Parties’ intention that SGC Employees shall not transfer to VGC or
                a Successor Operator on termination of the CoA, and that all SGC
                Employees
                shall remain employed by SGC.

            

    

     

    
      	
              1.2  

            	
              If
                any contract of employment or collective agreement shall have effect
                as if
                originally made between VGC or a Successor Operator and any SGC Employee
                or a trade union or other body that represents employees as a result
                of
                the Employment Regulations and the CoA (without prejudice to any
                other
                rights or remedies which may be available to VGC or the Successor
                Operator, VGC may, within 1 month after becoming aware of the application
                of the Employment Regulations or the CoA to any such contract of
                employment or collective agreement, terminate such contract or agreement
                by serving the minimum period of notice required under the contract
                of
                employment of such employee or, where contractually permitted, by
                serving
                notice with immediate effect and making payment in lieu of
                notice.

            

    

     

    
      	
              1.3  

            	
              SGC
                shall indemnify VGC or the Successor Operator and keep it indemnified
                against any Employment Losses:

            

    

     

    
      	
              1.3.1  

            	
              relating
                to or arising out of a termination under Clause 1.1 and reimburse
                it for
                all costs and expenses (including, without limitation, any tax) incurred
                in employing such SGC Employee in respect of his employment on or
                after
                the Transfer Date and in respect of the employment of the SGC Employees
                prior to the Transfer Date;

            

    

     

    
      	
              1.3.2  

            	
              which
                relate to, arise out of or are connected with any act or omission
                by the
                SGC having its origin prior to the Transfer Date and which VGC or
                the
                Successor Operator incurs in relation to any employment relationship
                or
                collective agreement of one or more of the Relevant Employees or
                any other
                person pursuant to the Employment Regulations and/or in respect of
                the
                CoA; and

            

    

     

    
      	
              1.3.3  

            	
              which
                relate to, arise out of or are connected with any term or condition
                of
                employment in respect of early retirement arrangements and/or enhanced
                severance benefits (including but not limited to enhanced redundancy
                benefits).

            

    

     

    
      	
              1.4  

            	
              As
                used in this Schedule, the following terms shall be defined as
                follows:

            

    

     

    
      	
              1.5  

            	
               “contract
                of employment”,
                “collective
                agreement”, “relevant
                transfer” and
                “trade union”
                shall have the same meanings as in the Employment
                Regulations;

            

    

     

    
      	
              1.6  

            	
               “Employment
                Losses” means
                any and all losses, liabilities, costs (including but not limited
                to, the
                costs of reasonable legal and other expert advice), charges
                and

            

    

    
      
        

      

    

    
      
        
          Services
            (Schedule 4 to CoA)

        

        
          53

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    expenses
      arising out of or connected with employment or the employment relationship
      (or
      the termination thereof) of SGC Employee, including those arising out of any
      actions, proceedings, claims, and demands;

     

    
      	
              1.7  

            	
               “Successor
                Operator”
                means any third party that assumes any of VGC’s obligations under the
                CoA;

            

    

     

    
      	
              1.8  

            	
               “SGC
                Employee” means
                those individuals who perform Services including (where the context
                permits) the service delivery
                manager.

            

    

     

    
      	
              1.9  

            	
               “Transfer
                Date” means the
                date on which the SGC ceases providing the Services or any such date
                that
                any court or other tribunal of competent jurisdiction shall determine
                to
                be the “time of transfer” under the Transfer
                Regulations;

            

    

     

    
      	
              1.10  

            	
               “Employment
                Regulations”
                means:

            

    

     

    
      	
              1.10.1  

            	
              For
                VGCs subject to the laws of England and Wales - the Transfer of
                Undertakings (Protection of Employment) Regulations
                1981;

            

    

     

    
      	
              1.10.2  

            	
              For
                VGCs in the European Union but not subject to the laws of England
                and
                Wales, Directive 2001/23/EC of the European Parliament and the Council
                as
                implemented in the laws of the country of establishment of VGC;
                or

            

    

     

    
      	
              1.10.3  

            	
              For
                all other VGCs, all local and applicable international laws regulating
                the
                transfer of undertakings.

            

    

    
      
        

      

    

    
      
        
          Services
            (Schedule 4 to CoA)

        

        
          54

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    
      
        SCHEDULE
          5

         

GLOBAL
      PRICE BOOK

     

    

    A.  LICENSE
      AND LICENSE
      FEES

    Supplier
      will enter into CoAs for enterprise licenses of all the Standard Software
      specified above (except as provided below) with the VGC’s listed below (the
“Listed VGCs”) for a license fee to be designated by VGSL.

    

    Listed
      VGCs:

    

    [
      * 1 page of text omitted ]

    

    *  License
      will not include the Marketing Director Suite

    
      Organic
        Growth

    

    There
      will be no change in the price for the license for a VGC to the extent that
      the
      number of subscribers supported by that VCG increases through organic
      growth.

    

    Growth
      through Merger or Acqusition

    If
      through acquisition or merger, a VGC increases its subscriber base following
      such acquisition or merger such that it moves from one pricing bracket (after
      taking into account any organic growth that has taken place up to the time
      of
      such acquisition) to another (ie, small to medium; large to very large)
      described in the future pricing matrix listed below, the VGC shall be required
      to pay the difference between the license and support fee amount for the bracket
      applicable immediately prior to the acquisition or merger and the license and
      support fee for the larger bracket applicable after giving effect to the
      acquisition or merger.

    

    Effect
      of Transfer:

    If
      there
      is a transfer of a CoA from one VGA to another VGA which has a subscriber base
      which would move that license to another pricing bracket after taking into
      account any organic growth up to the time of such transfer (ie, small to medium;
      large to very large) described in the future pricing matrix listed
      below,

    
      
        

      

    

    
      
        
          Prices
            (Schedule 5 to CoA)

        

        
          55

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    then
      the
      VGC shall be required to pay the difference between the license and support
      fee
      amount for the bracket applicable immediately prior to the transfer and the
      license and support fee for the new bracket.

    

    B.  FUTURE
      PRICING

    

    VGSL
      may purchase additional licenses
      for the Standard Software products listed above at the respective quantities
      and
      license fees indicated below for majority owned subsidiaries of VGSL other
      than
      Listed VGCs. Furthermore VGSL may purchase additional licenses for the Standard
      Software products listed above at the respective quantities and license fees
      indicated below for minority owned subsidiaries of VGSL on a case by case basis,
      as agreed to by Supplier in its sole discretion.  All future pricing
      (table and discount levels below) only applies to VGCs in the following business
      areas: Communications and is valid until
      Dec
      15, 2009.

    

    Majority
      Owned
      VGCs

    

    

    As
      part
      of this agreement, Supplier offers the following pricing for any majority owned
      VGCs in which Vodafone acquires a majority stake.

    

    
      	 	
              Nr
                of Subscr

            	
              Licence
                Fee CDM & CMD

            	
              Annual
                Support and Maintenance

            
	 	 	 	 
	
              Small

            	
              <5
                mill

            	
              [
                * ]

            	
              [
                * ]

            
	
              Medium

            	
              5
–
                10 mill

            	
              [
                * ]

            	
              [
                * ]

            
	
              Large

            	
              10
                – 30 mill

            	
              [
                * ]

            	
              [
                * ]

            
	
              Very
                Large

            	
              30
                – 50 mill

            	
              [
                * ]

            	
              [
                * ]

            
	
              Mega

            	
              >50
                mill

            	
              [
                * ]

            	
              [
                * ]

            

    

    

    Notwithstanding
      the foregoing, for one of the (large or smaller) majority owned VCGs that are
      purchasing the Chordiant Decision Management suite only as part of this
      agreement, that VCG may purchase the Marketing Director suite for the license
      fee of [ * ]
      plus an annual 15% [ * ]
      support and
      maintenance.

    

    Standard
      Software products offered as part of the CDM licence include the then current
      versions of the following:

    

    
      	
              ·  

            	
              Chordiant
                Data Preparation Director: unlimited number of concurrent
                users

            

    

    
      
        

      

    

    
      
        
          Prices
            (Schedule 5 to CoA)

        

        
          56

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              ·  

            	
              Chordiant
                Predictive Analytics Director: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Adaptive Decisioning Services: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Strategy Director: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Database Decisioning Services: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Real-Time Decisioning Services: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Recommendation Advisor: unlimited number of
                seats

            

    

    
      	
              ·  

            	
              Chordiant
                Interaction Services: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Campaign Management Decisioning Service: unlimited number of
                CPUs

            

    

    
      	
              ·  

            	
              Chordiant
                Decision Monitor: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Real-Time Proposition Monitoring: unlimited number of
                CPUs

            

    

    

    Standard
      Software products offered as part of the CMD licence include the then current
      versions of the following:

    

    
      	
              ·  

            	
              Chordiant
                Marketing Director, core module: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                eMail Marketing Director: unlimited number of concurrent
                users

            

    

    
      	
              ·  

            	
              Chordiant
                Mobile Marketing Director: unlimited number of concurrent
                users

            

    

    

    The
      Standard Software listed above shall be deemed accepted upon
      delivery.

    

    Minority
      Owned
      VGCs

    

    For
      any
      mobile telecom organisation where VGSL has more than a 15% stake but less than
      50% Supplier offers a fixed discount of [ * ]%
      against Supplier's standard
      list price for Chordiant Decision Management and Chordiant Marketing Director
      Standard Software products listed above.

    

    Partner
      Organisation

    

    For
      Partner Network organisations, Supplier offers a fixed discount of [ * ]%
      against Supplier's standard
      price list, for Chordiant Decision Management and Chordiant Marketing Director
      Standard Software products listed above, subject to approval from
      Supplier.

    

    Organic
      Growth

    There
      will be no change in the price for the license for a VGC to the extent that
      the
      number of subscribers supported by that VCG increases through organic
      growth.

     

    Growth
      through Merger or Acqusition

    
      
        

      

    

    
      
        Prices
          (Schedule 5 to CoA)

      

      
        57

        
          

        

      

      
        [ *
          ] = CERTAIN
          CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
          HAS
          BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
          PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
          AMENDED.

      

    

    If
      through acquisition or merger, a VGC increases its subscriber base following
      such acquisition or merger such that it moves from one pricing bracket (after
      taking into account any organic growth that has taken place up to the time
      of
      such acquisition) to another (ie, small to medium; large to very large)
      described in the future pricing matrix listed above, the VGC shall be required
      to pay the difference between the license and support fee amount for the bracket
      applicable immediately prior to the acquisition or merger and the license and
      support fee for the larger bracket applicable after giving effect to the
      acquisition or merger.

    

    Effect
      of Transfer:

    If
      there
      is a transfer of a CoA from one VGA to another VGA which has a subscriber base
      which would move that license to another pricing bracket after taking into
      account any organic growth up to the time of such transfer (ie, small to medium;
      large to very large) described in the future pricing matrix listed above, then
      the VGC shall be required to pay the difference between the license and support
      fee amount for the bracket applicable immediately prior to the transfer and
      the
      license and support fee for the new bracket.

    
      
        

      

    

    
      
        
          Prices
            (Schedule 5 to CoA)

        

        
          58

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    SCHEDULE
      6

     

    CORPORATE
      SOCIAL RESPONSIBILITY

    

     

    Each
      Party places great importance on the principle that business should be conducted
      responsibly. Vodafone Group Companies have established the Vodafone Business
      Principles, which they wish to promote with their third party suppliers. In
      addition, Vodafone Group Companies have established the Vodafone Code of Ethical
      Purchasing, which is consistent with the basic principles of the SA 8000 and
      ISO
      14001 standards.

     

    Supplier
      and SGCs agree to implement the principles set out in the Vodafone Code of
      Ethical Purchasing across each of their businesses and within each of their
      own
      supply chains.

     

    In
      the
      event that the Vodafone Code of Ethical Purchasing or Vodafone Business
      Principles are amended, Supplier and SGCs shall be informed.

    

    

    Vodafone
      Code of Ethical Purchasing

    

     

    

     

    VODAFONE
      CODE OF ETHICAL
      PURCHASING

    As
      one of
      the world’s largest mobile telecommunications network companies, Vodafone has a
      significant role to play in enriching people’s lives.

    We
      also
      understand that we have a significant role to play in managing our business
      carefully and responsibly, which is why we have adopted a set of core Values
      and
      Business Principles to govern our activities and interactions with all our
      stakeholders across the world, including our suppliers.

    Our
      Business Principles declare a commitment “to promote the application of our
      Business Principles by our business partners and suppliers.”

    The
      following Code of Ethical Purchasing is to be read in conjunction with our
      Business Principles, and is designed to promote safe and fair working
      conditions, and the responsible management of environmental and social issues
      in
      Vodafone’s supply chain.

    The
      Code
      has been developed in consultation with employees, suppliers, investors and
      Non-Governmental Organisations.  It sets out the standards we wish to
      see achieved by Vodafone and our suppliers over time.

    The
      principle of continuous improvement applies to all aspects of the
      Code.

    In
      accordance with the implementation provisions of the Code, Vodafone will require
      first level suppliers to acknowledge their understanding and acceptance of
      our
      Code and to confirm that they will comply.

    Vodafone
      will work collaboratively with our suppliers on the implementation of the Code,
      which may include joint audits and site visits to assess
      performance.

    Vodafone
      will publicly report on the implementation of and compliance with the
      Code.

    Vodafone
      will encourage all suppliers to implement our Code across their whole business
      and within their own supply chains.

    
      
        

      

    

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    IMPLEMENTATION
      OF THE CODE

    Ownership

    
      	
              ·  

            	
              The
                Vodafone Director of Global Supply Chain Management is the owner
                of the
                Vodafone Code of Ethical Purchasing, and reports to the Integrations
                and
                Operations Committee on the implementation of the
                Code.

            

    

     

    
      	
              ·  

            	
              The
                Director of Global Supply Chain Management and the Heads of Supply
                Chain
                Management in each of the Operating Companies have operational
                responsibility for the implementation of the
                Code.

            

    

     

    Communication

    
      	
              ·  

            	
              Vodafone
                will communicate and promote its Code of Ethical Purchasing internally
                and
                externally to relevant
                stakeholders.

            

    

     

    
      	
              ·  

            	
              Suppliers
                are encouraged to take all reasonable endeavours to promote the Code
                to
                their suppliers and subcontractors.

            

    

     

    Training
      and Awareness

    
      	
              ·  

            	
              Vodafone
                and its suppliers will ensure that all relevant people are provided
                with
                appropriate training and guidelines to support the
                Code.

            

    

     

    Application

    
      	
              ·  

            	
              Suppliers
                applying this code are expected to comply with all relevant laws,
                regulations and standards in all of the countries in which they
                operate.

            

    

     

    
      	
              ·  

            	
              The
                Code is applied for the purposes of promoting safe and fair working
                conditions and the responsible management of environmental and social
                issues in Vodafone’s supply chain.

            

    

     

    
      	
              ·  

            	
              Suppliers
                will be asked to confirm (in writing) that they are implementing
                the Code,
                or similar purchasing standard such as the Ethical Trading Initiative
                (ETI) Base Code, Social Accountability International’s SA 8000, or the
                Chartered Institute of Purchasing and Supply Ethical Business Practices
                in
                Purchasing and Supply.

            

    

     

    
      	
              ·  

            	
              Vodafone
                will work collaboratively with its suppliers on the implementation
                of the
                Code, which may include joint audits1
                and site visits to assess performance
                against the Code.

            

    

     

    
      	
              ·  

            	
              Suppliers
                will be asked to provide Vodafone with reasonable access to all relevant
                information and premises for the purposes of assessing performance
                against
                the Code, and use reasonable endeavours to ensure that sub-contractors
                do
                the same.

            

    

     

    

      

    

     

      
        	
                1

              	
                Audits
                  would ideally be conducted
                  jointly between Vodafone and the supplier, and may also include
                  the
                  assistance of an industry representative, or relevant Non-Governmental
                  Organisation.

              

      

    

    
      
        

      

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

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            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    Corrective
      Action

     

    
      	
              ·  

            	
              Suppliers
                are expected to identify and correct any activities that fall below
                the
                standard of the Code.

            

    

     

    
      	
              ·  

            	
              Suppliers
                shall immediately report to Vodafone any serious breaches of the
                Code,
                together with an agreed schedule for corrective
                action.

            

    

     

    
      	
              ·  

            	
              Where
                serious breaches of the Code persist, Vodafone will consider termination
                of the business relationship with the supplier
                concerned.

            

    

     

    Monitoring
      and Reporting

    
      	
              ·  

            	
              Vodafone’s
                Corporate Responsibility and Purchasing teams will use a risk-based
                approach2
                to monitor implementation of and
                adherence to the Code in our supply chain, and will report progress
                in the
                annual Vodafone Corporate Social Responsibility
                Report.

            

    

     

    
      	
              ·  

            	
              Vodafone
                and its suppliers will use reasonable endeavours to provide employees
                and
                other stakeholders with a confidential means to report any actual
                or
                potential breach of the Code.

            

    

     

    

      

    

     

      
        	
                1

              	
                Vodafone
                  will focus on those
                  parts of the supply chain where the risk of not meeting the Code
                  is
                  highest and where the maximum difference can be made with resources
                  available.

              

      

    

    
      
        

      

    

    
      
        
          Corporate
            Social Responsbility (Schedule 6 to CoA)

        

        
          3

          
            

          

        

        
          
          

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            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    CODE
      OF ETHICAL PURCHASING

    1.      
      Child Labour

    
      	
              ·  

            	
              No
                person is employed who is below the minimum legal age for employment.3

            

    

     

    
      	
              ·  

            	
              Children
                (persons under 18 years) are not employed for any hazardous work,
                or work
                that is inconsistent with the child’s personal development.4

            

    

     

    
      	
              ·  

            	
              Where
                a child is employed, the best interests of the child shall be the
                primary
                consideration.

            

    

     

    
      	
              ·  

            	
              Policies
                and programmes that assist any child found to be performing child
                labour
                are contributed to, supported, or
                developed.

            

    

     

    2.      
      Forced Labour

    
      	
              ·  

            	
              Forced,
                bonded or compulsory labour is not used and employees are free to
                leave
                their employment after reasonable notice.  Employees are not
                required to lodge deposits of money or identity papers with their
                employer.

            

    

     

    3.      
      Health & Safety

    
      	
              ·  

            	
              A
                healthy and safe working environment is provided for employees, in
                accordance with international standards and national laws.  This
                includes access to clean toilet facilities, drinkable water and,
                if
                applicable, sanitary facilities for food
                storage.

            

    

     

    
      	
              ·  

            	
              Where
                an employer provides accommodation, it shall be clean, safe and meet
                the
                basic needs of employees.

            

    

     

    
      	
              ·  

            	
              Appropriate
                health and safety information and training is provided to
                employees.

            

    

     

    4.      
      Freedom of Association

    
      	
              ·  

            	
              As
                far as any relevant laws allow, all employees are free to join or
                not to
                join trade unions or similar external representative
                organisations.

            

    

     

    5.      
      Discrimination

    
      	
              ·  

            	
              Negative
                discrimination5
                including racial or sexual
                discrimination is prohibited.

            

    

     

    6.      
      Disciplinary Practices

    
      	
              ·  

            	
              Employees
                are treated with respect and dignity.  Physical or verbal abuse
                or other harassment and any threats or other forms of intimidation
                are
                prohibited.

            

    

     

    7.      
      Working Hours

    
      	
              ·  

            	
              Working
                hours of employees comply with national laws and are not excessive6.

            

    

     

    8.      
      Payment

    
      	
              ·  

            	
              Employees
                understand their employment conditions and fair and reasonable pay7
                and terms are
                provided.

            

    

     

    

      

    

     

      
        	
                2

              	
                Minimum
                  age is the age of completion of compulsory schooling, or not less
                  than 15
                  years (or not less than 14 years, in countries where educational
                  facilities are insufficiently
                  developed).

              

      

    

     

      
        	
                3

              	
                Personal
                  development includes a child’s health or physical, mental, spiritual,
                  moral or social development.

              

      

    

     

      
        	
                4

              	
                Forms
                  of discrimination may include race, colour, sex, sexual orientation,
                  religion, political opinion, nationality, social origin, social
                  status,
                  indigenous status, disability, age and union
                  membership.

              

      

    

     

      
        	
                5

              	
                Consideration
                  should be given to the type of work performed and the acceptable
                  working
                  hours for the role and the country
                  concerned.

              

      

    

     

      
        	
                6

              	
                Consideration
                  should be given to the type of work performed and the market wage
                  for the
                  work as well as any statutory minimum wage for the country
                  concerned.

              

      

    

    
      
        

      

    

    
      
        
          Corporate
            Social Responsbility (Schedule 6 to CoA)

        

        
          4

          
            

          

        

        
          
          

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            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    9.  Individual
      Conduct

    
      	
              ·  

            	
              No
                form of bribery, including improper offers for payments to or from
                employees, or organisations, is
                tolerated.

            

    

     

    10.           
      Environment

    
      	
              ·  

            	
              Processes
                are in place to actively improve the efficiency with which finite
                resources (such as energy, water, raw materials) are
                used.

            

    

     

    
      	
              ·  

            	
              Appropriate
                management, operational and technical controls are in place to minimise
                the release of harmful emissions to the
                environment.

            

    

     

    
      	
              ·  

            	
              Appropriate
                measures are in place to improve the environmental performance of
                products
                and services when in use by the end
                user.

            

    

     

    
      	
              ·  

            	
              Innovative
                developments in products and services that offer environmental and
                social
                benefits are supported.

            

    

     

    REFERENCES

    Vodafone’s
      Code of Ethical Purchasing is based on the following international
      standards:

    
      	
              ·  

            	
              The
                United
                Nations
                Universal Declaration of Human
                Rights.

            

    

    
      	
              ·  

            	
              The
                Conventions
                of
                the International Labour
                Organisation.

            

    

    
      	
              ·  

            	
              The
                United
                Nations
                Convention on the Rights of the
                Child.

            

    

     

    Reference
      has also been made to:

    
      	
              ·  

            	
              Social
                Accountability International’s SA 8000
                Standard

            

    

    
      	
              ·  

            	
              The
                Ethical Trading Initiative (ETI) Base Code,
                and

            

    

    
      	
              ·  

            	
              The
                UN Draft Norms of Responsibilities of Transnational Corporations
                and Other
                Business Enterprises with Regard to Human Rights
                (2003)

            

    

     

    With
      respect to the International Labour Organisation Conventions on Labour
      Standards, the following provisions have been referenced in the development
      of
      this Code:

    
      	
              ·  

            	
              Convention
                1 (Acceptable working hours)

            

    

    
      	
              ·  

            	
              Conventions
                29 (Forced and bonded Labour)

            

    

    
      	
              ·  

            	
              Convention
                87, 98, and 135
                (Freedom of
                Association)

            

    

    
      	
              ·  

            	
              Convention
                111
                (Discrimination)

            

    

    
      	
              ·  

            	
              Convention
                138
                (Minimum Age)

            

    

    
      	
              ·  

            	
              Convention
                135&
                Recommendation 143
                (Workers’
                Representatives Convention)

            

    

    
      	
              ·  

            	
              Convention
                155
                Article 19 (Health and safety
                training)

            

    

     

    DEFINITIONS

    A
      child means a person below
      the age of 18 years, as defined in Article 1 of the United Nations Convention
      on
      the Rights of the Child.

    Personal
      development is
      described in the Article 32 of the United Nations Convention on the Rights
      of
      the Child.

    

    

    Vodafone
      Business Principles

    

    
      
        

      

    

    
      
        
          Corporate
            Social Responsbility (Schedule 6 to CoA)

        

        
          5

          
            

          

        

        
          
          

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            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    

     

    Vodafone’s
      Business Principles

    Vodafone’s
      success flows from our commitment to sound business conduct and the way we
      interact with our stakeholders – shareholders, employees, customers, business
      partners and suppliers - government and regulators, communities and society,
      and
      the environment.

    As
      a
      global business, Vodafone operates within a wide range of legal
      jurisdictions.  We respect the rule of law within these jurisdictions
      and support appropriate internationally accepted standards including those
      on
      human rights.  Our Business Principles represent the additional
      commitments we make to our stakeholders.

    Our
      Business Principles apply to all Vodafone companies in which we have a majority
      equity interest and to all Vodafone employees.  Where Vodafone
      operates in conjunction with business partners, third parties or in joint
      venture arrangements where we do not have a majority equity interest, we will
      seek to promote the application of our Business Principles.

    We
      understand that we will be judged on whether we live up to our Business
      Principles.  We will share good practice across Vodafone as we strive
      for continuous performance improvement.  We will measure, review and
      report openly on our performance against our Business Principles.

    
      
        

      

    

    
      
        
          Corporate
            Social Responsbility (Schedule 6 to CoA)

        

        
          6

          
            

          

        

        
          
          

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            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    1.      
      Value Creation

    We
      believe that competition in a market economy, pursued in an ethical way, is
      the
      best way of delivering benefits to our stakeholders.

    
      	
              ·  

            	
              We
                are committed to providing the best possible return for our
                shareholders.  The criteria for our investment decisions,
                acquisitions and business relationships will be primarily economic
                but
                they will also include social and environmental
                considerations.

            

    

     

    2.      
      Public Policy

    We
      will
      voice our opinions on government proposals and other matters that may affect
      our
      stake-holders but we will not make gifts or donations to political parties
      or
      intervene in party political matters.

     

    3.      
      Communications

    We
      will
      communicate openly and transparently with all of our stakeholders within the
      bounds of commercial confidentiality.

     

    4.      
      Customers

    We
      are
      committed to providing our customers with safe, reliable products and services
      that represent good value for money.

    
      	
              ·  

            	
              We
                will work to understand, anticipate and respond to the needs of our
                customers and to provide them with innovative products and
                services.

            

    

    
      	
              ·  

            	
              We
                value the trust our customers place in us and will safeguard the
                information provided to us in accordance with relevant
                laws.

            

    

     

    5.      
      Employees

    Relationships
      with and between employees are based upon respect for individuals and their
      human rights.

    
      	
              ·  

            	
              We
                will pursue equality of opportunity and diversity through our employment
                policies.

            

    

    
      	
              ·  

            	
              We
                will encourage our employees to reach their full potential through
                training and development.

            

    

    
      	
              ·  

            	
              We
                will promote employee participation in share incentive
                plans.

            

    

     

    6.      
      Individual Conduct

    We
      expect
      all our employees to act with honesty, integrity and fairness.

    
      	
              ·  

            	
              No
                form of bribery, including improper offers or payments to or from
                employees will be tolerated.

            

    

    
      	
              ·  

            	
              All
                employees are expected to avoid any contacts that might lead to,
                or
                suggest, a conflict of interest between their personal activities
                and the
                business of Vodafone.

            

    

    
      	
              ·  

            	
              All
                employees are expected to avoid accepting hospitality or gifts that
                might
                appear to place them under an
                obligation.

            

    

     

    7.      
      Environment

    We
      are
      committed to sustainable business practices and environmental
      protection.

    
      	
              ·  

            	
              We
                will use finite resources
                carefully.

            

    

    
      	
              ·  

            	
              We
                will promote the use of operational practices that reduce the
                environmental burden associated with our
                activities.

            

    

    
      	
              ·  

            	
              We
                will support innovative developments in products and services that
                can
                offer environmental and social
                benefits.

            

    

     

    8.      
      Communities and Society

    We
      accept
      our responsibility to engage with communities and we will invest in society
      in a
      way that makes effective use of our resources, including support for charitable
      organisations.

    9.      
      Health and Safety

    We
      are
      committed to the health and safety of our customers, employees and the
      communities in which we operate.

    
      	
              ·  

            	
              We
                will disclose any information that comes to our knowledge, which
                clearly
                demonstrates that any of our products or services breach internationally
                accepted safety standards or
                guidelines.

            

    

     

    
      
        

      

    

    
      
        
          Corporate
            Social Responsbility (Schedule 6 to CoA)

        

        
          7

          
            

          

        

        
          
          

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            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
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            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    10.           
      Business Partners and Suppliers

    We
      will
      pursue mutually beneficial relationships with our business partners and
      suppliers.

    
      	
              ·  

            	
              We
                will seek to promote the application of our Business Principles by
                our
                business partners and suppliers.

            

    

     

    
      
        

      

    

    
      
        
          Corporate
            Social Responsbility (Schedule 6 to CoA)

        

        
          8

          
            

          

        

        
          
          

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            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    SCHEDULE
      7

     

    CURRENCY
      CONVERSION PROCESS

    

    

    If
      Supplier’s Prices are stated in €:

    

     

    CURRENCY
      CONVERSION PROCESS

     

    [Note:
      only to be used if VGC payments are not in Euros]

     

    
      	
               

            	
              On
                and from the Effective Date of the Contract of Adherence, the price
                of the
                Products fixed in Euros shall be translated for payment from the
                Euro to a
                Relevant Currency (as defined below) if required by VGC using the
                foreign
                exchange rate formula as set out below.

            

    

     

    
      	
               

            	
              The
                foreign exchange rate used shall be determined by using an average
                of the
                previous 5 days (immediately prior to the date funds are transferred
                to
                Supplier) mid price foreign exchange rates quoted on the Reuters
“WMRSPOT”
                pages (such as the WMRSPOT29 for Euro GBP or WMRSPOT31 for Euro/USD).
                

            

    

     

    
      	
               

            	
              The
                calculated foreign exchange rate will be used to translate any new
                prices,
                fees or charges agreed in relation to Purchase Orders issued by VGC
                prior
                to the Calculation Date following the Effective Date of the Contract
                of
                Adherence. 

            

    

     

    
      	
               

            	
              In
                the event that on any particular day the WRMSPOT pages required are
                not
                available then an average spot rate will be determined using quotes
                from
                Barclays Bank Plc, London and Citibank N.A.; London at 11.00 am on
                the
                same day. In the event that the required day is not a Business Day
                then
                the nearest preceding Business Day should be used.
                

            

    

     

    
      	
              6.  

            	
              On
                the Calculation Date (as defined below) following the Effective Date8
                of the relevant Contract of Adherence
                and on each Calculation Date thereafter, the price of the Products
                fixed
                in euros shall be translated for payment from the Euro to a “Relevant
                Currency” as defined below and required by VGC for the following financial
                year using the Exchange Rate Formula as set out below. VGC will provide
                Supplier with copies of detailed calculations with supporting
                documentation.

            

    

     

    
      	
               

            	
              In
                the event that VGC chooses to pay in a Relevant Currency for any
                financial
                year (April 1 to March 31) during the term of the Contract of Adherence,
                the selected currency shall apply in relation to all Purchase Orders
                issued by VGC during the financial year selected.
                

            

    

     

    
      	
               

            	
              The
                selected currency shall continue to apply, unless and until VGC elects
                to
                revert to payment in Euros as set out in paragraph g) below.
                

            

    

     

    
      	
               

            	
              On
                the Calculation Date in each year, Vodafone Group Plc shall determine
                the
                Average Forward rate for each Relevant Currency. The Average Forward
                Rate
                for each Relevant Currency shall be the average of the five Forward
                Rates
                for such Relevant Currency for each of the Calculation Periods. The
                

            

    

    

      

    

     

    
      
        

      

    

    
      
        
          Currency
            Conversion Process (Schedule 7 to CoA)

        

        
          9

          
            

          

        

        
          
          

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            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
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            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    “Forward
      Rate” means, in respect of each Relevant Currency and each Calculation Period,
      the rate determined by applying the following formula:

     

    FR=Spot
      Rate x (1+(RC x
      M/12)

     

               
      (1+(RE x M/12)

    

     

    Where:

     

    “FR”
is
      the Forward
      Rate;

     

    “M”
is
      the number of months in
      the relevant Calculation Period;

     

    “RC”
is
      the yield derived from
      the zero coupon yield curve in the Relevant Currency for a period equal to
      the
      relevant Calculation Period as quoted on the page of Reuters Money Markets
      Service Index page ZERO/1 at approximately 12 noon (London time) on the
      Calculation Date;

     

    “RE”
is
      the yield derived from
      the zero coupon yield curve in Euros for a period equal to the relevant
      Calculation Period as quoted on the relevant page of Reuters Money Markets
      Service Index page ZERO/1 Page 0#EURZ=R) at approximately 12 noon on the
      Calculation Date.

     

    
      	
               

            	
              VGC
                may elect prior to the first Valuation Date by written and confirmed
                notice to the Supplier in respect of the financial year commencing
                on 1
                April next following the Calculation Date to make payment in respect
                of
                Purchase Orders issued during such financial year in Euros instead
                of its
                Relevant Currency, in which event no such determination will be necessary.
                

            

    

     

    
      	
              7.  

            	
              Definitions
                in this Schedule 7:

            

    

     

    “Business
      Day” means a day
      (other than a Saturday or Sunday) on which WMRSPOT is published on the Reuters
      Money Markets Service and banks are open for business in London;

     

    “Calculation
      Date” means the
      first Thursday in January or if that is not a Business Day the immediately
      succeeding (Tuesday or Thursday) which is a Business Day;

     

    “Calculation
      Period” means the
      First Calculation Period, Second Calculation Period, Third Calculation Period,
      Fourth Calculation Period and Fifth Calculation Period or any of them as the
      context may require;

     

    “First
      Calculation Period”
means the period from the Calculation Date to the day falling three
      calendar
      months after such Calculation Date;

     

    “Second
      Calculation Period”
means the period from the Calculation Date to the day falling six calendar
      months after such Calculation Date;

     

    “Third
      Calculation Period”
means the period from the Calculation Date to the day falling nine calendar
      months after such Calculation Date;

     

    “Fourth
      Calculation Period”
means the period from the Calculation Date to the day falling twelve
      calendar
      months after such Calculation Date;

    
      
        

      

    

    
      
        
          Currency
            Conversion Process (Schedule 7 to CoA)

        

        
          10

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    “Fifth
      Calculation Period”
means the period from the Calculation Date to the day falling fifteen
      calendar
      months after such Calculation Date;

     

    “Relevant
      Currency” means each
      of Japanese Yen; United States Dollar; British Pound Sterling, Australian
      Dollar, New Zealand Dollar, Polish Zloty, Hungarian Forint and Swedish
      Krone;

     

    “Spot
      Quotations” means in
      respect of each Valuation Date and each Relevant Currency the mid-rate of
      exchange for the purchase of (euros) in the London foreign exchange market
      with
      such Relevant Currency at or about 4 pm (London time) on such Valuation Date
      as
      shown on page WMRSPOT of the Reuters Money Markets Service;

     

    “Spot
      Rate” means the average
      of the Spot Quotations for each of the Valuation Dates;

     

    “Valuation
      Date” means each
      Tuesday and Thursday falling in each of the four calendar weeks immediately
      preceding the Calculation Date or if any such day is not a Business Day the
      immediately preceding Business Day.

     

    

    

    

    

    

    

    If
      Supplier’s Prices are stated in USD$:

     

    

     

    CURRENCY
      CONVERSION PROCESS

     

    [Note:
      only to be used if VGC payments are not in US Dollars]

     

    
      	
               

            	
              On
                and from the Effective Date of the Contract of Adherence, the price
                of the
                Products fixed in US Dollars shall be translated for payment from
                the US
                Dollar to a Relevant Currency (as defined below) if required by VGC
                using
                the foreign exchange rate formula as set out below.
                

            

    

     

    
      	
               

            	
              The
                foreign exchange rate used shall be determined by using an average
                of the
                previous 5 days (immediately prior to the date funds are transferred
                to
                Supplier) mid price foreign exchange rates quoted on the Reuters
“WMRSPOT”
                pages (such as the WMRSPOT07 for GBP/USD or WMRSPOT05 for Euro/USD).
                

            

    

     

    
      	
               

            	
              The
                calculated foreign exchange rate will be used to translate any new
                prices,
                fees or charges agreed in relation to Purchase Orders issued by VGC
                prior
                to the Calculation Date following the Effective Date of the Contract
                of
                Adherence. 

            

    

     

    
      	
               

            	
              In
                the event that on any particular day the WRMSPOT pages required are
                not
                available then an average spot rate will be determined using quotes
                from
                Barclays Bank Plc, London and Citibank N.A.; London at 11.00 am on
                the
                same day. In the event that the required day is not a Business Day
                then
                the nearest preceding Business Day should be used.
                

            

    

    
      
        

      

    

    
      
        
          Currency
            Conversion Process (Schedule 7 to CoA)

        

        
          11

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              8.  

            	
              On
                the Calculation Date (as defined below) following the Effective Date
                of
                the relevant Contract of Adherence and on each Calculation Date
                thereafter, the price of the Products fixed in US Dollars shall be
                translated for payment from the US Dollar to a “Relevant Currency” as
                defined below and required by VGC for the following financial year
                using
                the Exchange Rate Formula as set out below. VGC will provide Supplier
                with
                copies of detailed calculations with supporting
                documentation.

            

    

     

    
      	
               

            	
              In
                the event that VGC chooses to pay in a Relevant Currency for any
                financial
                year (April 1 to March 31) during the term of the Contract of Adherence,
                the selected currency shall apply in relation to all Purchase Orders
                issued by VGC during the financial year selected.
                

            

    

     

    
      	
               

            	
              The
                selected currency shall continue to apply, unless and until VGC elects
                to
                revert to payment in US Dollars as set out in paragraph g) below.
                

            

    

     

    
      	
               

            	
              On
                the Calculation Date in each year, Vodafone Group Plc shall determine
                the
                Average Forward rate for each Relevant Currency. The Average Forward
                Rate
                for each Relevant Currency shall be the average of the five Forward
                Rates
                for such Relevant Currency for each of the Calculation Periods. The
                “Forward Rate” means, in respect of each Relevant Currency and each
                Calculation Period, the rate determined by applying the following
                formula:
                

            

    

     

    FR=Spot
      Rate x (1+(RC x
      M/12)

     

               
      (1+(RE x M/12)

     

    Where:

     

    “FR”
is
      the Forward
      Rate;

     

    “M”
is
      the number of months in
      the relevant Calculation Period;

     

    “RC”
is
      the yield derived from
      the zero coupon yield curve in the Relevant Currency for a period equal to
      the
      relevant Calculation Period as quoted on the page of Reuters Money Markets
      Service Index page ZERO/1 at approximately 12 noon (London time) on the
      Calculation Date;

     

    “RE”
is
      the yield derived from
      the zero coupon yield curve in US Dollars for a period equal to the relevant
      Calculation Period as quoted on the relevant page of Reuters Money Markets
      Service Index page ZERO/1 Page 0#USDZ=R) at approximately 12 noon on the
      Calculation Date.

     

    
      	
               

            	
              VGC
                may elect prior to the first Valuation Date by written and confirmed
                notice to the Supplier in respect of the financial year commencing
                on 1
                April next following the Calculation Date to make payment in respect
                of
                Purchase Orders issued during such financial year in US Dollars instead
                of
                its Relevant Currency, in which event no such determination will
                be
                necessary. 

            

    

     

    
      	
              9.  

            	
              Definitions
                in this Schedule 7:

            

    

     

    “Business
      Day” means a day
      (other than a Saturday or Sunday) on which WMRSPOT is published on the Reuters
      Money Markets Service and banks are open for business in London;

    
      
        

      

    

    
      
        
          Currency
            Conversion Process (Schedule 7 to CoA)

        

        
          12

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    “Calculation
      Date” means the
      first Thursday in January or if that is not a Business Day the immediately
      succeeding (Tuesday or Thursday) which is a Business Day;

     

    “Calculation
      Period” means the
      First Calculation Period, Second Calculation Period, Third Calculation Period,
      Fourth Calculation Period and Fifth Calculation Period or any of them as the
      context may require;

     

    “First
      Calculation Period”
means the period from the Calculation Date to the day falling three
      calendar
      months after such Calculation Date;

     

    “Second
      Calculation Period”
means the period from the Calculation Date to the day falling six calendar
      months after such Calculation Date;

     

    “Third
      Calculation Period”
means the period from the Calculation Date to the day falling nine calendar
      months after such Calculation Date;

     

    “Fourth
      Calculation Period”
means the period from the Calculation Date to the day falling twelve
      calendar
      months after such Calculation Date;

     

    “Fifth
      Calculation Period”
means the period from the Calculation Date to the day falling fifteen
      calendar
      months after such Calculation Date;

     

    “Relevant
      Currency” means each
      of Japanese Yen; Euro; British Pound Sterling, Australian Dollar, New Zealand
      Dollar, Polish Zloty, Hungarian Forint and Swedish Krone;

     

    “Spot
      Quotations” means in
      respect of each Valuation Date and each Relevant Currency the mid-rate of
      exchange for the purchase of (US Dollars) in the London foreign exchange market
      with such Relevant Currency at or about 4 pm (London time) on such Valuation
      Date as shown on page WMRSPOT of the Reuters Money Markets Service;

     

    “Spot
      Rate” means the average
      of the Spot Quotations for each of the Valuation Dates;

     

    “Valuation
      Date” means each
      Tuesday and Thursday falling in each of the four calendar weeks immediately
      preceding the Calculation Date or if any such day is not a Business Day the
      immediately preceding Business Day.

    
      
        

      

    

    
      
        
          Currency
            Conversion Process (Schedule 7 to CoA)

        

        
          13

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    SCHEDULE
      8

     

    

    

    

    
      
        

      

    

    
      
        
          Data
            Protection (Schedule 8 to CoA)

        

        
          14

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    SCHEDULE
      9

     

    SOURCE
      CODE ESCROW AGREEMENT

    (TEMPLATE)

    

    

    

    

    

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          15

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    

     

     

    Single
      Licensee

     

    

    
      	
              Escrow
                Agreement
                No:

            	 	
              Dated:

              
              

            	 

    

     

     

     

     

     Escrow
      Agreement
      Between:

     

    
      	
              (1)  

            	
              [                                  ]  whose
                registered office is
                at                                              (CRN:
                [number]) ("the Owner");

            

    

     

    
      	
              (2)  

            	
              Vodafone
                Group Services Limited whose registered office is at Vodafone House,
                The
                Connection, Newbury, Berkshire RG14 2FN, England (CRN: ) ("the Licensee")
                and

            

    

     

    
      	
              (3)  

            	
              NCC
                ESCROW INTERNATIONAL LIMITED whose registered office is at Manchester
                Technology Centre, Oxford Road, Manchester M1 7EF, ENGLAND (CRN:
                3081952)
                ("NCC Escrow").

            

    

     

     

    1. Preliminary:

     

    
      	
              (A)  

            	
              The
                Licensee has been granted a licence to use a software package comprising
                computer programs.

            

    

     

    Alternative
      Clause for Development Agreement

     

    
      	
              (A)

            	
              The
                Owner has granted or has agreed to grant a licence to the Licensee
                to use
                a software package that the Owner is developing to the Licensee’s
                specification pursuant to the [Development ] Agreement.
                

            

    

     

    
      	
              (B)  

            	
              Certain
                technical information and documentation relating to the software
                package
                is the confidential property of the
                Owner.

            

    

     

    
      	
              (C)  

            	
              The
                Owner acknowledges that upon the occurrence of any of the Release
                Events of this Agreement,
                the Licensee may require possession of and a right to use the technical
                information and documentation to be deposited with and held by NCC
                Escrow
                under this Agreement.

            

    

     

    
      	
              (D)  

            	
              Each
                of the Parties acknowledges that the consideration for their respective
                undertakings under this Agreement are the undertakings and obligations
                agreed to by each of the Parties
                hereunder.

            

    

     

     

    2. It
      is agreed that:

     

     

    2.1 
      Definitions

     

    In
      this Agreement the following terms
      shall have the following meanings:

     

    
      	
              15.5.1  

            	
              "Agreement"
                means the terms and conditions of this escrow agreement set out below,
                the
                schedules and Appendix A hereto.

            

    

     

    
      	
              15.5.2  

            	
              "Full
                Verification" means the tests and processes constituting NCC Escrow’s Full
                Verification service as described in schedule 3 hereto and/or such
                other
                tests and processes as may be agreed between the parties for the
                verification of the Material.

            

    

     

    
      	
              15.5.3  

            	
              “Group
                Company” means in relation to the Licensee, Vodafone Group Plc and any
                company or corporation in respect of which Vodafone Group Plc owns
                (directly or indirectly) more than 15% of the issued share
                capital.

            

    

     

    
      	
              15.5.4  

            	
              "Independent
                Expert" means a suitably qualified solicitor or
                barrister.

            

    

     

    
      	
              15.5.5  

            	
              "Integrity
                Testing" means those tests and processes forming NCC Escrow’s integrity
                testing service  as described in schedule 3 hereto in so far as
                they are applicable to the
                Material.

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          16

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              15.5.6  

            	
              "Intellectual
                Property Rights" mean any copyright, patent, design patent, registered
                designs, design rights, utility models, trademarks, service marks,
                an
                application for any of these or the right to apply for the same,
                trade
                secrets, know how, database rights, moral rights, confidential
                information, trade or business names, domain names, and any other
                rights
                of a similar nature including industrial and proprietary rights and
                other
                similar protected rights in any country and any licences under or
                in
                respect of such rights.

            

    

     

    
      	
              15.5.7  

            	
              "Licence
                Agreement" means the agreement under which the Licensee was granted
                rights
                to the Package and which is part of the
                [              ]
                Agreement for the supply of Software and Services entered into by
                the
                Owner and the Licensee dated
                [                ].

            

    

     

    Alternative
      clause 1.7 for use with Development Agreement

     

    1.7           
      “Development Agreement” means the development agreement between the Owner and
      the Licensee relating to the development of the Package entered into by the
      Owner and the Licensee dated
      [                        ]

    
      	
              15.5.8  

            	
              “Maintenance
                Agreement” means the agreement for the support and maintenance of the
                Software which is part of the
                [           ]
                Agreement for the supply of Software and Services entered into by
                the
                Owner and the Licensee dated
                [                       ]

            

    

     

    
      	
              15.5.9  

            	
              "Material"
                means the Source Code of the Package and such other materials (including
                specifically but without limitation, firmware) and documentation
                (including updates and upgrades thereto and new versions thereof)
                as are
                necessary to comply with clause 2
                hereof.

            

    

     

    
      	
              15.5.10  

            	
              "Package"
                or “Software” means the software package as more particularly described in
                Schedule 1 and any updates, upgrades or new versions thereof licensed
                to
                the Licensee under the Licence [Development] Agreement, any maintenance
                agreement, any other agreement between the Owner and the Licensee
                or this
                Agreement.

            

    

     

    

    
      	
              15.5.11  

            	
              “Release
                Events” means the events set out in clause
                6.1.

            

    

     

    
      	
              15.5.12  

            	
              "Source
                Code" means the computer programming code of the Package in human
                readable
                form that  would enable a skilled third party on behalf of the
                Licensee to support, maintain and modify the Software
                .

            

    

     

    
      	
              15.5.13  

            	
              “Working
                Day” means a day other than a Saturday, Sunday, or public holiday in
                England.

            

    

     

     

    
      	
              2.2  

            	
              Owner's
                Duties and Warranties

            

    

     

    
      	
              15.5.1  

            	
              The
                Owner shall:

            

    

     

    
      	
              15.5.1.1  

            	
              deliver
                at its cost two copies of the Material to NCC Escrow within 15 days
                of the
                date of this Agreement or the date of acceptance of the Software,
                whichever is later;

            

    

     

    
      	
              15.5.1.1  

            	
              deliver
                at its cost to NCC Escrow two replacement copies of the Material
                each time
                that the Package is updated or amended or changed pursuant to the
                Licence
                Agreement, the Maintenance Agreement or any other agreement between
                the
                Owner and the Licensee or this Agreement within 30 days of such update,
                amendment or change;

            

    

     

    
      	
              15.5.1.1  

            	
              at
                all times ensure that the Material as delivered to NCC
                Escrow

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          17

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    is
      capable of being used to generate the latest version of the Package issued
      to
      the Licensee and is capable of being used to understand, maintain, modify,
      correct and develop the latest version of the Package issued to the
      Licensee;

     

    
      	
              15.5.1.1  

            	
              shall
                notify NCC Escrow immediately of any circumstances under Clause 2.1.2
                which necessitates a replacement deposit of the
                Material;

            

    

     

    
      	
              15.5.1.1  

            	
              deliver
                to NCC Escrow two replacement copies of the Material within 12 months
                of
                the last delivery to ensure the integrity of the Material
                media;

            

    

     

    [Alternative
      clauses 2.1.2 – 2.1.5 for
      use with Development Agreements

    
      	
              15.5.1.1  

            	
              deliver
                at its cost within 7 days two copies of each part of the Material
                that has
                passed acceptance tests in accordance with the terms of the [Development
                Agreement] and two complete copies of the Material within 7 days
                of
                acceptance of the Package by the Licensee in accordance with the
                terms of
                the Development Agreement;

            

    

     

    
      	
              15.5.1.1  

            	
              at
                all times ensure that the Material as delivered to NCC Escrow is
                capable
                of being used to generate the latest version of the Package issued
                to the
                Licensee and shall deliver to NCC Escrow further copies of the Material
                as
                and when necessary;

            

    

     

    
      	
              15.5.1.1  

            	
              during
                the development of the Material under the [Development Agreement],
                deliver
                to NCC Escrow two replacement copies of the Material within 3 months
                of
                the last delivery;

            

    

     

    
      	
              15.5.1.1  

            	
              upon
                completion of all development work on the Material under the [Development
                Agreement], deliver to NCC Escrow two replacement copies of the Material
                within 12 months of the last delivery to ensure the integrity of
                the
                Material media;]

            

    

     

    

    
      	
              15.5.1.1  

            	
              deliver
                two replacement copies of the Material to NCC Escrow within 14 days
                of
                receipt of a notice served upon it by NCC Escrow under the provisions
                of
                clause 4.1.5.  In such a case the Owner may recover from NCC
                Escrow its reasonable costs for the preparation of two copies of
                the
                Material;

            

    

     

    
      	
              15.5.1.1  

            	
              deliver
                with each deposit of the Material the following
                information:

            

    

     

    
      	
              (1)  

            	
              details
                of the deposit including full name (original name as set out under
                Schedule 1 together with any new names given to the Package by the
                Owner)
                and version details, media type, backup command/software used, compression
                used, archive hardware and operating system details;
                and

            

    

     

    
      	
              (2)  

            	
              password/encryption
                details required to access the
                Material;

            

    

     

    
      	
              15.5.1.1  

            	
              deliver
                with each deposit of the Material any of the following technical
                information (where applicable) which must be sufficient to allow
                a
                reasonably skilled software programmer or engineer to understand,
                maintain, modify and correct the
                Material:

            

    

     

    
      	
              (1)  

            	
              documentation
                describing the procedures for building, compiling and installing
                the
                software, including names and versions of the development
                tools;

            

    

     

    
      	
              (2)  

            	
              software
                design information (e.g. module names and functionality);
                and

            

    

     

    
      	
              (3)  

            	
              name
                and contact details of employees with knowledge of how
                to

            

    

     

    
      
        

      

    

    
      
        
          oSource
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          18

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     maintain
      and support the Material; and

     

    
      	
              15.5.1.1  

            	
              deposit  a
                backup copy of the object code of any third party software package
                required to access, install, build or compile or otherwise use the
                Material.

            

    

     

    
      	
              15.5.2  

            	
              The
                Owner warrants:

            

    

     

    
      	
              15.5.1.1  

            	
              on
                its own behalf and on behalf of each and every director of the Owner,
                to
                NCC Escrow, that it is the sole legal and beneficial owner
                of  the Intellectual Property Rights in the Material (other than
                any third party object code referred to in clause 2.1.9) or in respect
                of
                any Source Code  forming part of the Material that it does not
                own, it has been granted valid and ongoing rights under licence by
                the
                third party owner(s) thereof to deal with such Source Code in the
                manner
                anticipated under this Agreement and that the Owner has the express
                authority of such third party owner(s) to deposit the same under
                this
                Agreement as evidenced by signed letter(s) of authorisation in the
                form
                set out in Appendix A, to be provided to NCC Escrow prior to or no
                later
                than at the time of such deposits;

            

    

     

    
      	
              15.5.1.1  

            	
              that
                in entering into this Agreement, it is not in breach of any of its
                ongoing
                express or implied obligations to any third
                party(s);

            

    

     

    
      	
              15.5.1.1  

            	
              that
                the Material lodged under clause 2.1 shall contain all information
                in
                human-readable form (except for any third party object codes) and
                on
                suitable media to enable a reasonably skilled programmer or analyst
                to  ( develop the package if and to the extent permitted in the
                [Development/Licence Agreement] and to understand, maintain, modify
                and
                correct  the Package; and

            

    

     

    

    
      	
              15.5.1.1  

            	
              that
                in respect of any third party object code that the
                Owner  deposits with NCC Escrow under this Agreement in
                conjunction with the Material, that it has full right and authority
                to do
                so.

            

    

     

     

    
      	
              2.3  

            	
              Licensee’s
                Undertaking

            

    

     

    
      	
              15.5.1  

            	
              In
                the event that the Material is released under clause 6, the Licensee
                shall
                subject to the provisions of this clause keep the Material confidential
                and shall use the Material only for the purpose of [developing],
                understanding, maintaining, modifying and correcting the Package
                exclusively on behalf of the Licensee or to such greater extent as
                is
                permitted under the Licence [Development] Agreement  and/or
                clause 6 hereof.

            

    

     

    
      	
              15.5.2  

            	
              3.2
                The Licensee may disclose the Material to  and/or permit useage
                by Group Companies/third parties to the extent  permitted in the
                [Development]/Licence Agreement and where such disclosure or useage
                occurs
                shall ensure that such Group Companies/third parties are subject
                to the
                same obligations of confidence as are contained
                herein.

            

    

     

    

     

    
      	
              2.4  

            	
               NCC
                Escrow's Duties and Warranties

            

    

     

    
      	
              15.5.1  

            	
              NCC
                Escrow warrants that it shall:

            

    

     

    
      	
              15.5.1.1  

            	
              hold
                the Material in a safe and secure
                environment;

            

    

     

    
      	
              15.5.1.1  

            	
              upon
                receipt of any deposit of the Material, apply the Integrity Testing
                to the
                Material in accordance with clause
                9;

            

    

     

    
      	
              15.5.1.1  

            	
              inform
                the Owner and the Licensee of the receipt of any
                deposit

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          19

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    of
      the
      Material by way of a copy of the Integrity Testing report or Full Verification
      report (as the case may be) generated from the testing carried out under clause
      9;

     

    
      	
              15.5.1.1  

            	
              at
                all times retain at each of two (2) different locations one (1) copy
                of
                the latest verified deposit of the Material and one (1) copy of the
                previous deposit of the material and notify the Owner and the Licensee
                in
                writing of each such location; and

            

    

     

    
      	
              15.5.1.1  

            	
              notify
                the Owner and the Licensee if it becomes aware at any time during
                the term
                of this Agreement that the copy of the Material held by it has been
                lost,
                damaged or destroyed.

            

    

     

    
      	
              15.5.2  

            	
              NCC
                Escrow shall not be responsible for procuring the delivery of the
                Material
                in the event of failure by the Owner to do so, but NCC Escrow must
                as soon
                as practicable  notify the Licensee of the Owner's failure to
                deposit any Material under this Agreement of which it is
                aware.

            

    

     

    
      	
              15.5.3  

            	
              NCC
                Escrow may with the Licensee’s prior written consent such consent not to
                be unreasonably withheld or delayed, appoint agents, contractors
                or
                sub-contractors to carry out the Integrity Testing and the Full
                Verification and NCC Escrow shall ensure that such agents, contractors
                or
                sub-contractors are bound by the same confidentiality obligations
                as are
                contained in clause 7.

            

    

     

    
      	
              15.5.4  

            	
              NCC
                Escrow shall have the right to make such copies of the Material as
                may be
                necessary solely for the purposes of this Agreement and following
                termination of this Agreement all such copies shall be
                destroyed  or returned to the Owner at its
                request.

            

    

     

    
      	
               

            	
              4.5

            	
              NCC
                Escrow shall obtain and maintain with a reputable insurance company
                for
                the duration of its obligations under this Agreement and for a period
                of
                twelve months thereafter the following insurances; public and product
                liability insurance with a limit of not less than £10 million per
                occurrence and professional indemnity (errors and omissions) insurance
                with a limit of not less than £5 million per occurrence together with such
                other insurances required by law with a limit in each of not less
                than £5
                million in relation to any one claim (or such greater amounts as
                required
                by law).    NCC Escrow shall administer its insurances
                in accordance with good industry practice at all times. If required
                by the
                Licensee NCC Escrow shall provide evidence of its insurances and
                payment
                of any premium (in a form satisfactory to the Licensee) and shall
                not
                subsequently reduce the level of such insurance.
                

            

    

     

    
      	
               

            	
              4.6

            	
              In
                addition to all warranties and conditions implied by statute or otherwise
                , NCC Escrow warrants and represents to each of the Owner and Licensee
                that each of its obligations under this Agreement, including without
                limitation its obligations under this Clause 4, shall be performed
                promptly in a timely, professional and workmanlike manner in accordance
                with best industry practice. 

            

    

    

     

    
      	
              2.5  

            	
              Payment

            

    

     

    
      	
              15.5.1  

            	
              The
                Owner and the Licensee shall pay NCC Escrow’s standard fees and charges as
                published from time to time or as otherwise agreed in accordance
                with this
                Agreement and in the proportions set out in Schedule 2. NCC Escrow’s fees
                as published are exclusive of value added tax and inclusive of all
                other
                taxes.

            

    

     

    
      	
              15.5.2  

            	
              NCC
                Escrow and the Licensee shall meet once a year to discuss in good
                faith
                the

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          20

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    level
      of
      NCC Escrow’s standard fees and charges for its services applicable under this
      Agreement. In the absence of agreement, NCC Escrow shall be entitled to increase
      its fee and charges once a year upon 45 days notice to the parties, provided
      that any increase may not  exceed the lesser of 10% or the rate
      provided by the Retail Prices Index plus 5%.

     

    
      	
              15.5.3  

            	
              All
                invoices are payable within 30 days from the end of the month in
                which the
                invoice is received. NCC Escrow reserves the right to charge interest
                in
                respect of the late payment of any sum due under this Agreement (as
                well
                after as before judgement) at the rate of 2% per annum over the prevailing
                base rate of the HSBC Bank Plc accruing on a daily basis from the
                due date
                therefore until full payment.

            

    

     

    

    

    

     

    
      	
              2.6  

            	
              Release
                Events

            

    

     

    
      	
              15.5.1  

            	
              Subject
                to the provisions of clauses 6.2 and 6.3 and upon receipt of its
                release
                fee and any other fees outstanding under this Agreement, NCC Escrow
                will
                release the Material to a duly authorised officer of the Licensee
                if any
                of the following events (“Release Event(s)”)
                occur:-

            

    

     

    
      	
              15.5.1.1  

            	
              the
                Owner enters into any company voluntary arrangement or individual
                voluntary arrangement or (being a company) enters into liquidation
                whether
                compulsory or voluntary (other than for the purposes of solvent
                reconstruction or amalgamation) or has a receiver or administrative
                receiver appointed over all or any part of its assets or undertaking
                or an
                Administration Order is made or (being an individual or partnership)
                becomes or is adjudicated bankrupt, or an event occurs within the
                jurisdiction of the country in which the Owner is situated which
                has a
                similar effect to any of the above events in the United Kingdom;
                or

            

    

     

    
      	
              15.5.1.1  

            	
              the
                Owner ceases or threatens to cease to carry on business;
                or

            

    

     

    
      	
              15.5.1.1  

            	
              the
                Owner assigns its rights in the Intellectual Property Rights in the
                Material and the assignee fails within 60 days of such assignment
                to offer
                the Licensee substantially similar protection to that provided by
                this
                Agreement without significantly increasing the cost to the Licensee;
                or

            

    

     

    
      	
              15.5.1.1  

            	
              the
                Owner is in  breach of its obligations as to [development], support,
                maintenance or modification of the Package under the Licence Agreement
                [Development Agreement] or any maintenance agreement entered into
                in
                connection with the Package and has failed to remedy such default
                notified
                by the Licensee to the Owner within a reasonable
                period.

            

    

     

    

    6.1.5
      The
      Owner fails to make a deposit of new, corrected or revised Material within
      5
      days of receipt of the notice of test failure pursuant to clause 9.4
      hereof.

    
      	
              15.5.2  

            	
              The
                Licensee must notify NCC Escrow of the Release Event(s) specified
                in
                clause 6.1 by delivering within one month of the date of actual knowledge
                of the Release Event to NCC Escrow a statutory or notarised declaration
                ("the Declaration") made by an officer of the Licensee declaring
                that such
                Release Event has occurred, setting out the facts and circumstances
                of the
                Release Event.

            

    

     

    
      	
              15.5.3  

            	
              Upon
                receipt of a Declaration from the Licensee claiming a Release Event
                under
                clause 6.1:

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          21

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              15.5.1.1  

            	
              NCC
                Escrow shall immediately submit a copy of the Declaration to the
                Owner by
                courier or equivalent type of post;
                and

            

    

     

    
      	
              15.5.1.1  

            	
              unless
                within 5  days after the date of despatch the Owner delivers to
                NCC Escrow a counter-notice signed by a duly authorised officer of
                the
                Owner stating that no such Release Event has occurred, or that the
                breach
                giving rise to the Release Event has been rectified as shown by
                documentation in support thereof

            

    

     

    NCC
      Escrow will immediately release the Material to the Licensee upon the expiry
      of
      such 5 day period.

     

    
      	
              15.5.4  

            	
              Upon
                receipt of the counter-notice from the Owner under clause 6.3.2,
                NCC
                Escrow shall to the extent that it is reasonably possible, the same
                day,
                or as soon as practicable thereafter send a copy of the counter-notice
                and
                any supporting evidence to the
                Licensee.

            

    

     

    
      	
              15.5.5  

            	
              In
                the event of any dispute as to the occurrence of any of the Release
                Events
                , NCC Escrow shall promptly notify the Owner and the Licensee of
                the
                dispute and such dispute will then be referred as soon as possible
                having
                regard to the urgency of the dispute by NCC Escrow to the Managing
                Director for the time being of NCC Escrow to appoint an Independent
                Expert
                or if either the Owner or the Licensee so requests within 5 Working
                Days
                of notification of a dispute as to the occurrence of any of the Release
                Events NCC shall forthwith apply to The Law Society or The Bar Council
                (or
                successor bodies) for the appointment of an Independent Expert on
                behalf
                of the Owner and the Licensee.

            

    

     

    
      	
              15.5.6  

            	
              Within
                5 Working Days of the appointment of the Independent Expert, the
                Owner and
                the Licensee shall each provide full written submissions to the
                Independent Expert together with all relevant documentary evidence
                in
                their possession in support of their claim, whereupon the Independent
                Expert shall give a decision on the matter within 14 Working Days
                of the
                date of referral  and shall send that decision to the parties
                and NCC Escrow. The Independent Expert's decision shall be final
                and
                binding on all parties to this Agreement and shall not be subject
                to
                appeal to a court in legal proceedings except in the case of manifest
                error.

            

    

     

    
      	
              15.5.7  

            	
              If
                the Independent Expert's decision is in favour of the Licensee, NCC
                Escrow
                is hereby authorised to release and deliver the Material to the Licensee
                within 2 Working Days of the decision being declared by the Independent
                Expert to the parties.

            

    

     

    
      	
              15.5.8  

            	
              The
                parties hereby agree that the reasonable costs and expenses of the
                Independent Expert shall be borne by the Owner (or its agent or any
                party
                acting on its behalf) where the Independent Expert decides that the
                relevant Release Event(s) has occurred, or the Licensee where the
                Independent Expert decides that the relevant Release Event(s) has
                not
                occurred.

            

    

     

    
      	
              15.5.9  

            	
              Subject
                to clause 6.2 above for the avoidance of doubt, where
                clause  6.1.1 or 6.1.2 Release Events have been triggered, a
                subsequent remedy by the Owner will not invalidate the Licensee’s right to
                apply to NCC Escrow for release of the Material unless the Licensee
                waives
                its right in writing within one month from the date of knowledge
                of a
                Release Event.

            

    

     

    
      	
               

            	
              6.10

            	
              In
                the event a Release Event occurs, the Licensee shall be entitled
                to
                deliver the Material to its Group Companies (as required) for use
                [in
                accordance with clause of the [Development] Licence Agreement].
                

            

    

     

    
      	
              2.7  

            	
              Confidentiality

            

    

     

    
      	
              15.5.1  

            	
              The
                Material shall remain the confidential property of the
                Owner.

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          22

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    
      	
              15.5.2  

            	
              Subject
                to clause 7.3 NCC Escrow agrees to keep all information relating
                to the
                Material and/or the Package that comes into its possession or to
                its
                knowledge under this Agreement in strictest confidence and
                secrecy.  NCC Escrow further agrees not to make use of such
                information and/or documentation other than for the purposes of this
                Agreement and will not disclose or release it other than in accordance
                with the terms of this Agreement, unless the parties should expressly
                agree otherwise in writing signed by the authorised signatories of
                all
                parties to this Agreement.

            

    

     

    
      	
              15.5.3  

            	
              This
                clause shall not apply to any information relating to the Material
                which:

            

    

     

    
      	
              §  

            	
              Is
                already in the public domain or which enters into the public domain
                other
                than by breach of this Agreement;

            

    

     

    
      	
              §  

            	
              Is
                received by NCC Escrow from a third party free to disclose the same
                or
                which NCC Escrow can prove was already in its possession free from
                restriction.

            

    

     

    

     

    
      	
              2.8  

            	
              Intellectual
                Property Rights

            

    

     

    
      	
              15.5.1  

            	
              The
                release of the Material to the Licensee will not act as an assignment
                of
                any Intellectual Property Rights that the Owner or any third party
                possesses in the Material.

            

    

     

    
      	
              15.5.2  

            	
              The
                Intellectual Property Rights in the Integrity Testing report and
                any Full
                Verification report shall remain vested in NCC Escrow. The Owner
                and the
                Licensee shall each be granted a non-exclusive non-transferable right
                and
                licence to use such report to [develop,] improve, modify or correct
                the
                Material and to give full effect to this Agreement and the [Development]
                [Licence] Agreement.Group Companies and other third parties shall
                be given
                a licence to use the Integrity Testing report and any Full Verification
                report to an equivalent extent that the [Development] [Licence] Agreement
                gives them the right to use the
                Material.

            

    

     

     

    
      	
              2.9  

            	
              Integrity
                Testing and Full Verification

            

    

     

    
      	
              15.5.1  

            	
              Subject
                to Clauses 9.2 and 9.3 below, NCC Escrow shall bear no obligation
                or
                responsibility to any party to this Agreement or person, firm, company
                or
                entity whatsoever to determine the existence, relevance, completeness,
                accuracy, operation, effectiveness, functionality or any other aspect
                of
                the Material received by NCC Escrow under this
                Agreement.

            

    

     

    
      	
              15.5.2  

            	
              Upon
                each lodging of the Material with NCC Escrow, NCC Escrow shall apply
                its
                Integrity Testing to the Material.

            

    

     

    
      	
              15.5.3  

            	
              Any
                party to this Agreement shall be entitled to require NCC Escrow to
                carry
                out a Full Verification. NCC Escrow’s prevailing fees and charges for the
                provision of the Full Verification, as set out in Schedule 2, shall
                be  split equally between the Owner and the Licensee, save that
                if in the reasonable opinion of the Managing Director of NCC Escrow
                based
                on the relevant test report(s), the Material is defective or incomplete
                in
                content, NCC Escrow's fees charges and expenses in relation to the
                Full
                Verification shall be paid by the
                Owner.

            

    

     

    
      	
              15.5.4  

            	
              Should
                the Material deposited fail to satisfy NCC Escrow's Integrity Testing
                or
                Full Verification tests under clauses 9.2 or 9.3, the Owner shall
                within 5
                days of the receipt of the notice of test failure from NCC Escrow,
                deposit
                such new, corrected or revised Material as shall be necessary to
                ensure
                its compliance with its warranties and obligations in clause 2. If
                the
                Owner fails to make such deposit

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          23

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    of
      the
      new, corrected or revised Material, NCC Escrow will issue a report to the
      Licensee detailing the problem with the Material as revealed by the relevant
      tests and the Licensee shall be entitled to apply for release of the Material
      pursuant to clause 6.1.5 hereof

     

     

    
      	
              2.10  

            	
              NCC
                Escrow's Liability

            

    

     

    
      	
              15.5.1  

            	
              Nothing
                in this clause 10 excludes or limits the liability of NCC Escrow
                for
                fraudulent misrepresentation or for death or personal injury caused
                by NCC
                Escrow's negligence. Save as aforesaid the following provisions set
                out
                the entire financial liability of NCC Escrow (including any liability
                for
                the acts or omissions of its employees, agents and sub-contractors)
                to the
                other parties:

            

    

     

    
      	
              15.5.1.1  

            	
              NCC
                Escrow shall not be liable for any loss or damage caused to either
                the
                Owner or the Licensee either jointly or severally except to the extent
                that such loss or damage is caused by the negligent acts or omissions
                of
                or a breach of any contractual duty by NCC Escrow, its employees,
                agents
                or sub-contractors and in such event NCC Escrow's total liability
                in
                respect of any claim or series of connected claims arising under
                or by
                virtue of this Agreement or in connection with the performance or
                contemplated performance of this Agreement, shall not exceed
                the  sum of £1,000,000.

            

    

     

    
      	
              15.5.1.1  

            	
              NCC
                Escrow shall not be liable to the Owner and/or the Licensee for any
                indirect or consequential loss or damage whether for loss of profit,
                loss
                of business, depletion of goodwill or otherwise whatsoever or howsoever
                caused which arise out of or in connection with this Agreement even
                if
                such loss was reasonably foreseeable or NCC Escrow had been advised
                of the
                possibility of incurring the same by the Owner, the Licensee or any
                third
                party.

            

    

     

    
      	
              15.5.2  

            	
              NCC
                Escrow shall be protected in acting upon any written request, waiver,
                consent, receipt, statutory declaration or any other document furnished
                to
                it pursuant to and in accordance with this Agreement, not only in
                assuming
                the authority of the person furnishing such document, its authenticity,
                due execution and validity and effectiveness of its provisions but
                also as
                to the truth of any information contained in it which NCC Escrow
                in good
                faith believes to be genuine and what it purports to
                be.

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          24

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

     

    
      	
              2.11  

            	
              Indemnity

            

    

     

    Save
      for
      any claim falling within the provisions of clause 10.1:

     

    
      	
              15.5.1  

            	
              The
                Owner  agrees to reimburse NCC Escrow on an indemnity basis all
                of its legal and all related costs incurred directly or indirectly
                as a
                result of being brought into or otherwise becoming involved in any
                form of
                dispute resolution proceedings or any litigation of any kind between
                the
                Owner and the Licensee in relation to this Agreement to the extent
                that
                this Agreement does not otherwise provide for reimbursement of such
                costs.

            

    

     

    
      	
              15.5.2  

            	
              The
                Owner shall assume all liability and shall indemnify and keep indemnified
                both NCC Escrow and the Licensee and their officers, agents,
                sub-contractors and employees from and against any and all liability,
                loss, damages, costs, legal costs, professional and other expenses
                and any
                other liabilities of whatever nature, awarded against or agreed to
                be paid
                or otherwise suffered, incurred or sustained by NCC Escrow and the
                Licensee, whether direct, indirect or consequential as a result of
                or in
                connection with any claim by any third party(s) for alleged or actual
                infringement of Intellectual Property Rights arising out of or in
                connection with all and any dealings by NCC Escrow and the Licensee
                in
                respect of the Material as contemplated under this
                Agreement.

            

    

     

     

    
      	
              2.12  

            	
              Termination

            

    

     

    
      	
              15.5.1  

            	
              NCC
                Escrow may terminate this Agreement by notice in writing to the Owner
                and
                the Licensee after failure by the Owner or the Licensee to comply
                with a
                30 day written notice from NCC Escrow to pay any outstanding fee
                set out
                in Schedule 2.  If the failure to pay is on the part of the
                Owner, the Licensee shall be given formal notice pursuant to clause
                13.4
                hereof offering it the option of paying such fee itself which option
                shall
                expire 30  days after it is notified to the
                Licensee.  Such amount will be recoverable by the Licensee
                direct from the Owner.

            

    

     

    
      	
              15.5.2  

            	
              NCC
                Escrow may terminate this Agreement by giving 60 days written notice
                to
                the Owner and the Licensee. In that event the Owner and the Licensee
                shall
                appoint a mutually acceptable new custodian on similar terms and
                conditions to those contained herein. If a new custodian is not appointed
                within 60 days of delivery of such notice, the Licensee shall be
                entitled
                to request the President for the time being of the British Computer
                Society (or such other body replacing the same) to appoint a suitable
                new
                custodian upon terms and conditions which contain the same protections
                and
                benefits for the Licensee as set out in this Agreement.  Such
                appointment shall be final and binding on all parties. NCC Escrow
                will
                forthwith deliver the Material to the new
                custodian.

            

    

     

    
      	
              15.5.3  

            	
              The
                Licensee may terminate this Agreement at any time by giving written
                notice
                to NCC Escrow.  Provided such notice is not given in the first
                year of the Agreement, NCC Escrow shall give a pro-rata refund of
                the
                annual fee paid in advance by the Owner and the Licensee in the
                proportions in which they paid the
                fee.

            

    

     

    
      	
              15.5.4  

            	
               The
                Owner may only terminate this Agreement with the written consent
                of the
                Licensee.

            

    

     

    
      	
              15.5.5  

            	
              This
                Agreement shall terminate upon release of the Material to the Licensee
                in
                accordance with clause 6.

            

    

     

    
      	
              15.5.6  

            	
              Upon
                termination under the provisions of clauses 12.3 or 12.4, for 30
                days from
                the date of termination NCC Escrow will make the Material available
                for

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          25

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    collection
      by the Owner from the premises of NCC Escrow during office
      hours.  After such 30 day period NCC Escrow will destroy the
      Material.

     

    
      	
              15.5.7  

            	
              For
                the avoidance of doubt, this Agreement may be terminated forthwith
                by
                mutual agreement of all parties hereto and upon such termination,
                unless
                otherwise agreed, NCC Escrow will return the Material to the
                Owner.  Provided such termination does not take place in the
                first year of the Agreement, NCC Escrow shall give a pro-rata
                refund  of the annual fee paid in advance by the Owner and the
                Licensee in the proportions in which they paid the
                fee.

            

    

     

    
      	
              15.5.8  

            	
              The
                provisions of clauses 7 to 13  shall continue in full force
                after termination of this
                Agreement.

            

    

     

    
      	
              15.5.9  

            	
              On
                termination of this Agreement the Owner and/or the Licensee (as
                appropriate) shall remain liable to NCC Escrow for payment in full
                of any
                fee which has become due but which has not been paid as at the date
                of
                termination.

            

    

     

    
      	
              15.5.10  

            	
              The
                termination of this Agreement, however arising, shall be without
                prejudice
                to the rights accrued to the parties prior to
                termination.

            

    

     

     

    
      	
              2.13  

            	
              General

            

    

     

    
      	
              15.5.1  

            	
              The
                parties shall notify the other parties within 30 days of any change
                of
                names or any other material changes that may affect the validity
                or
                operation of this Agreement.

            

    

     

    
      	
              15.5.2  

            	
              The
                formation, existence, construction, performance, validity and all
                aspects
                of this Agreement shall be governed by and construed in accordance
                with
                the laws of England and subject to clauses 6.5 to 6.8  the
                parties submit to the exclusive jurisdiction of the English
                courts.

            

    

     

    
      	
              15.5.3  

            	
              This
                Agreement, the Schedules and the Appendix hereto, together with the
                [Development] [Licence] Agreement and any maintenance agreement (in
                respect of the Owner and Licensee only) represents the whole agreement
                relating to the escrow arrangements between the parties for the Package
                and shall supersede all prior agreements, discussions, arrangements,
                representations, negotiations and undertakings. In the event
                of
                any conflict between any of these documents, the terms of the
                [Development] [Licence] Agreement shall prevail as between the Owner
                and
                the Licensee

            

    

     

    
      	
              15.5.4  

            	
              Any
                notice or other communication required or permitted to be given or
                made
                hereunder shall be validly given or made if delivered by hand or
                courier
                or if despatched by pre-paid, registered letter post addressed to
                the
                address specified on page 1 of this Agreement (or such other address
                as
                may be notified to the parties from time to time) or if sent by facsimile
                message to such facsimile number as has been notified to the parties
                from
                time to time and shall be deemed to be given or
                made:

            

    

     

    

    (i)           
      if delivered by hand or courier, at the time of delivery;

    (ii)           
      if sent by registered first class post, 2 business days after the same shall
      have been posted;

    
      	
              (iii)  

            	
              if
                sent by facsimile, at the time of transmission of the facsimile
                transmission with facsimile machine confirmation of transmission
                to the
                correct facsimile number of all pages of the
                notice.

            

    

    

    

    
      	
              15.5.5  

            	
              NCC
                Escrow shall  be entitled to transfer or assign this
                Agreement  on giving 60 days notice in writing to the Owner and
                the Licensee.  Such notice shall specify the name of the
                proposed Transferee or Assignee.  Should NCC Escrow’s Assignee
                or Transferee not be acceptable to either the Licensee or the Owner,
                a new
                escrow agent shall be appointed in accordance with the terms of clause
                12.2

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          26

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    hereof.

     

    
      	
              15.5.6  

            	
              Within
                14 days of any assignment or transfer by the Owner of any part of
                its
                Intellectual Property Rights in the Material, the Owner shall notify
                NCC
                Escrow of such assignment or transfer and include within the notice
                the
                date on which the assignment or transfer took
                effect.

            

    

     

    
      	
              15.5.7  

            	
              This
                Agreement shall be binding upon the successors and assigns of the
                parties
                provided always that nothing shall permit any assignment by any
                party  except as expressly provided
                herein.

            

    

     

    
      	
              15.5.8  

            	
              If
                any provision of this Agreement is declared illegal, invalid or
                unenforceable, or is too broad in any respect to permit enforcement
                to its
                full extent, the parties agree that such provision shall be enforced
                to
                the maximum extent permitted by law and that such provision shall
                be
                deemed to be varied accordingly. If any provision of this Agreement
                is
                found by any court, tribunal or administrative body of competent
                jurisdiction to be wholly or partly illegal, invalid, void, voidable,
                unenforceable or unreasonable, it shall, to the extent of such illegality,
                invalidity, voidability, unenforceability or unreasonableness, be
                deemed
                severable to that extent and the remaining part of the provision
                and the
                rest of the provisions of this Agreement shall continue in full force
                and
                effect.

            

    

     

    
      	
              15.5.9  

            	
              Save
                as expressly provided in this Agreement, no amendment or variation
                of this
                Agreement shall be effective unless in writing and signed by a duly
                authorised representative of each of the parties to
                it.

            

    

     

    
      	
              15.5.10  

            	
              In
                relation to assignment, transfer or sub-contracting of this Agreement
                by
                the Owner and/or the Licensee the provisions of
                [clause    of the
                [                 ]
                Agreement for the supply of Software and Services dated
                [            ]
                entered into between the Owner and Licensee shall
                apply].

            

    

     

    
      	
              15.5.11  

            	
              Save
                for Group Companies (whose rights are set out in clause 6.10 hereof)
                this
                Agreement is not intended to create any right under the Contracts
                (Rights
                of Third Parties) Act 1999 which is enforceable by any person who
                is not a
                party to this Agreement and save for  and Group Companies the
                rights of any third party under the said Act are hereby expressly
                excluded. Notwithstanding the foregoing, the parties may rescind
                or vary
                this Agreement without the consent of those  Group Companies
                given the right of enforcement in this Clause
                13.11.

            

    

     

    
      	
              15.5.12  

            	
              No
                failure or delay by the Licensee in exercising any of its rights
                under
                this Agreement shall be deemed to be a waiver of that right save
                where
                this Agreement provides for express time limits to be
                met.

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          27

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    

    

     

    Signed
      for and on behalf of

     

    

     

    Name:           
      ..............................................................................                                  
¦ ......................................................................................................

     

    

     

    Position:                      
      ..............................................................................                              
¦     (Authorised Signatory)

     

    

     

    

     

    Signed
      for and on behalf of VODAFONE GROUP

     

     SERVICES
      LIMITED

     

    

     

    Name:           
      ..............................................................................                                   
¦ ......................................................................................................

     

    

     

    Position:                      
      ..............................................................................                                
¦     (Authorised Signatory)

     

    

     

    

     

    Signed
      for and on behalf of NCC ESCROW INTERNATIONAL LIMITED

     

    

     

    Name:           
      ..............................................................................                                     
¦ ......................................................................................................

     

    

     

    Position:                      
      ..............................................................................                                  
¦  (Authorised Signatory)

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          28

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

     

    3. Schedule
      1

     

     

    4. The
      Package

     

    The
      software package known as [name] or any other name(s) as may be given to it
      by
      the Owner from time to time.

    

    

    

     

    Schedule
      2

     

     

    5. NCC
      Escrow's Fees

     

    
      	 	
              DESCRIPTION

            	
              FEES

            	
              OWNER     

            	
              LICENSE

            
	
               1

              
              

            	
              Annual
                Fee (payable on completion of this Agreement and on each anniversary
                thereafter)

            	 	 	 
	
               2

              
              

            	
              Scheduled
                Update Fee (2nd
                and subsequent scheduled deposits in any one year, payable on completion
                of this Agreement and on each anniversary thereafter)

              For
                development agreements

              Please
                note a minimum of 3 are required during the development of the Material
                in
                accordance with clause 2.1.4

            	 	 	 
	
               3

              
              

            	
              Unscheduled
                Update Fee (per unscheduled deposit)

            	 	 	 
	
               4

              
              

            	
              Release
                Fee (plus NCC Escrow's reasonable expenses)

            	 	
              100%

            	 
	
               5

              
              

            	
              Integrity
                Testing Fee

            	 	
              100%

            	 
	
               6

              
              

            	
              Full
                Verification Fee

            	 	
              100%

            	 

    

    

     

    

     

    

     

    Additional
      fees will be payable to NCC Escrow by the Licensee (unless otherwise agreed
      between the parties) for the following where applicable:

     

    

     

    
      	
              ·  

            	
              Storage
                Fee for deposits in excess of 1 cubic
                foot;

            

    

     

    
      	
              ·  

            	
              Any
                novation of this Agreement at the request of the Owner or the
                Licensee;

            

    

     

    
      	
              ·  

            	
              Integrity
                Testing Fee for deposits consisting of more than 5 media
                items.

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          29

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

    Schedule
      3

     

    

    
      
        The
          NCC
          Group

         

        Verification
          Services

         

        

      

      

      
 

      

    

     

    

    

    

     

    6. Integrity
      Testing

     

    

    This
      service is included as part of the standard escrow package. The aim of Integrity
      testing is to ensure the integrity of the media deposit. This is achieved by
      carrying out the following checks on each media item received:

    

    
      	
              ·  

            	
              A
                Virus check is carried out on each media item where
                applicable.

            

    

    
      	
              ·  

            	
              The
                media is read to ensure that all data can be retrieved
                successfully

            

    

    
      	
              ·  

            	
              Any
                compressed files retrieved are checked to ensure that they can be
                decompressed successfully. If the compressed files are protected
                by
                passwords, the passwords shall be obtained if not already supplied.
                *

            

    

    
      	
              ·  

            	
              A
                check shall be made for any encrypted files that may have been retrieved.
                Any encrypted files located shall be deencrypted and the methods
                to
                deencrypt shall be noted (passwords
                etc)*.

            

    

    
      	
              ·  

            	
              A
                check shall be made to ensure that source code files have been retrieved.
                A number of source code files shall be viewed to ensure that they
                can be
                viewed in human readable form.

            

    

    
      	
              ·  

            	
              A
                check shall be made on the existence of features in the source code
                that
                aid readability (and thus understandability). Features searched for
                are
                modification histories, indentation, comments, meaningful variable
                and
                procedure names and meaningful
                filenames.

            

    

    

    This
      final check is not a pass or fail issue, the check ascertains whether each
      feature is present.

    

    If
      any of
      the first five checks fail then the software owner shall be asked to provide
      a
      replacement deposit which in turn shall be integrity tested.

    

    On
      successful completion of the Integrity Test exercise, a brief report (average
      4
      pages) shall be produced which details the results of the above checks alongside
      an inventory of media items / documents received. The cover of the report
      details the escrow agreement number, software

    owner,
      date of deposit and name and version of source code (as stated on the
      accompanying source code deposit form, completed by the software
      owner).

    

    This
      level of verification does not include any building or testing of deposited
      material.

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          30

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    *
      The
      fact that passwords form part of the escrow deposit are noted but the passwords
      themselves are not revealed in the Integrity testing report.

     

    7. Integrity
      Plus

     

    

    The
      following is a schedule for a typical Integrity Plus exercise.

    

    The
      software owner may prepare the source code deposit media prior to the Integrity
      Plus exercise taking place, although it is recommended that the exercise is
      completed before the media is prepared.  Standard Integrity testing of
      the created media item is usually the final stage of the
      process.  This ensures that all required materials (source code, batch
      files, documents, CAD drawings etc.,) are included on the deposit
      media.  The following schedule assumes that all of the files required
      for placing on the escrow media are in place on appropriate hardware in a
      location that can be examined by the verification consultant.

    

    The
      goal
      is to successfully complete the Integrity Plus exercise and for The NCC Group
      representative to retain the materials for lodgement in the Escrow Secure
      Deposit facility.

    

    This
      schedule assumes that the exercise will be carried out with the full
      co-operation of a technical representative of the software owner to provide
      guidance in gathering the data required for the most complete escrow
      lodgement.

    

    The
      proposed schedule is as follows:

    

    
      	
              ·  

            	
              Arrival
                at the verification site and introduction of
                participants

            

    

    
      	
              ·  

            	
              Opening
                Meeting

            

    

    
      	
              ·  

            	
              Explanation
                of Integrity Plus process

            

    

    
      	
              ·  

            	
              Brief
                Explanation of deposit to be lodged (source code, support files and
                documentation)

            

    

     

    
      	
              ·  

            	
              Agreement
                on the intended inventory of items to be handed over to NCC at the
                end of
                the process (i.e. the escrow
                deposit)

            

    

     

     

    
      	
              ·  

            	
              Questions
                and Answers Session (if necessary)

            

    

     

    
      	
              ·  

            	
              Explanation
                of Integrity Plus environment architecture (hardware & Operating
                Systems)

            

    

    
      	
              ·  

            	
              Explanation
                of the third party utilities and any batch files that would be required
                to
                build the application

            

    

    
      	
              ·  

            	
              Explanation
                of directories and contents to be placed on the escrow deposit
                media.

            

    

    
      	
              ·  

            	
              NCC
                will confirm the existence of source files on the verification
                hardware.  Sample source files will be viewed using the most
                appropriate viewer / editor

            

    

    
      	
              ·  

            	
              NCC
                will ascertain the level of clarity of the source code (i.e. modification
                histories, comments, indentation, meaningful variable/procedure names
                and
                meaningful filenames)

            

    

    
      	
              ·  

            	
              NCC
                will ascertain that a sample source file can be edited to ensure
                they are
                not write-protected in any way

            

    

    
      	
              ·  

            	
              If
                a database is used by the application under test, and is being placed
                in
                Escrow, a plan / entity diagram or list of tables shall be supplied
                to
                NCC

            

    

    
      	
              ·  

            	
              NCC
                shall ascertain that a number of chosen tables exist as stated in
                the
                information provided and that the tables contain the fields as
                expected.

            

    

    
      	
              ·  

            	
              If
                applicable, any CAD drawings or similar design lodgment items will
                be
                viewed and details taken of the drawing names, drawing numbers and
                filenames.  The amount of drawings checked will be determined by
                the total number of drawings
                lodged.

            

    

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          31

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              ·  

            	
              If
                available, the Software Owner shall provide NCC with documentation
                to be
                included with the deposit that would assist the future maintenance
                of the
                source code being placed into Escrow.  Details of the
                documentation (Titles, versions, dates and authors) will be
                noted.

            

    

    
      	
              ·  

            	
              The
                source code and all associated files shall be written to media for
                handing
                over to NCC for lodgment in Escrow

            

    

    
      	
              ·  

            	
              If
                applicable, and if available, a virus check shall be carried out
                on the
                media deposit

            

    

    
      	
              ·  

            	
              The
                contents of the media shall be read onto the verification hardware,
                ensuring that the media can be completely read without
                error

            

    

    
      	
              ·  

            	
              Check
                for passwords / encryption.

            

    

    
      	
              ·  

            	
              If
                passwords / encryption have been utilised in producing the escrow
                deposit,
                then the affected data /  files shall be accessed using the
                password or decryption key provided by the licensor.  The
                password or encryption key shall then be held as part of the Escrow
                deposit.

            

    

    
      	
              ·  

            	
              Check
                for compression.  If compression has been utilised then the
                files / data shall be decompressed

            

    

    
      	
              ·  

            	
              A
                Source Code Deposit form will be completed by the software owner
                representative.

            

    

    
      	
              ·  

            	
              The
                media item shall be retained by NCC for placing in Escrow along with
                completed source code deposit form

            

    

    
      	
              ·  

            	
              Closing
                Meeting including summary of Integrity Plus
                exercise.

            

    

    
      	
              ·  

            	
              Transfer
                the deposit to secure escrow
                location.

            

    

    

    On
      successful completion of the exercise, an Integrity Plus Test Report shall
      be
      produced recording the checks made, result of those checks and any findings
      or
      recommendations.

    

    

     

    8. Full
      Verification

     

    

    This
      service is for those who wish to ensure that the deposit in escrow is as
      complete as possible and contains source code that is correct and complete
      and
      can be built into the application as expected by the client.  The Full
      Verification exercise requires the assistance of the software owner and is
      carried out at their site. The main aims of the Full Verification exercise
      are:

    

    
      	
              ·  

            	
              to
                ensure that the source code can be built into a testable version
                of the
                application expected by the client;

            

    

    
      	
              ·  

            	
              that
                an escrow deposit is created containing all source code and associated
                files required during the Full Verification exercise as well as any
                other
                information required by a licensee should a release event ever occur;
                This
                deposit is Integrity Tested at the software owner’s
                site.

            

    

    
      	
              ·  

            	
              that
                a detailed report is produced of the steps carried out to build the
                application.  The report is provided to all parties involved in
                the verification process and is also placed in escrow as part of
                the Fully
                Verified deposit;

            

    

    

    The
      Full
      Verification exercise is made up of the following checks:

    

    
      	
              ·  

            	
              Opening
                Meeting in which the Full Verification process is explained, an
                explanation of software to be verified (functionality, modularity
                and
                technical issues) is given and agreement on the intended inventory
                of
                items to be handed over to NCC at the end of the
                process.

            

    

    
      	
              ·  

            	
              Explanation
                of verification architecture (hardware & Operating
                Systems)

            

    

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          32

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

    
      	
              ·  

            	
              Explanation
                of the third party utilities and any batch files that are to be used
                for
                the build process

            

    

    
      	
              ·  

            	
              Confirmation
                of the existence of source files on the verification
                hardware.  Sample source files will be viewed using the most
                appropriate viewer / editor

            

    

    
      	
              ·  

            	
              Ascertain
                the level of clarity of the source code (i.e. modification histories,
                comments, indentation, meaningful variable/procedure names and meaningful
                filenames)

            

    

    
      	
              ·  

            	
              Ascertain
                that sample source files can be edited to ensure they are not
                write-protected or encrypted in any
                way

            

    

    
      	
              ·  

            	
              If
                a database is used by the application under test, and is being placed
                in
                Escrow, a plan / entity diagram or list of tables (if available)
                should be
                supplied.   NCC shall then ascertain that a number of
                chosen tables exist as stated in the information provided and that
                the
                tables contain the fields as
                expected.

            

    

    
      	
              ·  

            	
              All
                relevant source programs will be compiled / built / linked in order
                to
                create an executable version of the
                software.

            

    

    
      	
              ·  

            	
              The
                executable version of the software generated during the Full Verification
                exercise will be installed on the relevant
                hardware

            

    

    
      	
              ·  

            	
              The
                software Owner will test the built executable prior to Licensee testing
                and shall verify that the working system is as
                expected.

            

    

    
      	
              ·  

            	
              The
                licensee representative shall carry out whatever tests are required
                in
                order to ascertain that the system behaves in a manner as is expected
                and
                is correct

            

    

    
      	
              ·  

            	
              If
                available, the software owner shall provide documentation that would
                assist the future maintenance of the source code being placed into
                Escrow.  This will ideally be supplied in softcopy form and
                should be placed in a source directory to be written to the escrow
                media
                deposit

            

    

    
      	
              ·  

            	
              The
                source code and all associated files (i.e documentation) shall be
                written
                to media for handing over for deposit in
                Escrow

            

    

    
      	
              ·  

            	
              The
                media items handed shall be Integrity
                Tested.

            

    

    
      	
              ·  

            	
              The
                verified code shall be retained by NCC for placing in Escrow along
                with
                completed source code deposit form

            

    

    

    On
      successful completion of the exercise, a Full Verification Test Report shall
      be
      produced recording the checks made, result of those checks and any findings
      or
      recommendations.

    

     

    9. Escrow
      Complete

     

    

    
      	
              ·  

            	
              Escrow
                Complete is the most comprehensive level of testing that the NCC
                Group can
                offer and bases itself on the Full Verification. Escrow Complete
                essentially begins with a standard Full Verification which is undertaken
                at the Software Owner’s offices. This exercise is used to create a new
                Escrow deposit, also obtaining detailed environment and build instructions
                throughout the compilation and deployment procedures for the application
                in question.

            

    

    

    
      	
              ·  

            	
              Escrow
                Complete extends the level of assurance offered by the Full Verification
                as it incorporates a repeat of the initial exercise, this time at
                the
                client’s offices. This exercise would make use of the Escrow deposit and
                build procedures recorded during the initial Full Verification and
                serves
                to ensure that the client then has the means to rebuild the system
                from
                scratch.

            

    

    

    
      	
              ·  

            	
              A
                representative from the Software Owner is required to carry out the
                verification procedures at both sites which will be documented by
                the NCC
                Group Consultant. As the

            

    

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          33

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    
      	
                

            	
              source
                code constitutes the IPR’s of the software owner, the repeat exercise must
                be suitably supervised in order to ensure the security of the
                code.

            

    

    

    

    
      The
        NCC Group, Manchester Technology Centre, Oxford Road, Manchester M1
        7EF

       

      

    

    
      Tel:
        +44 (0) 161 209 5256, Fax +44 161 209 5394

       

      

    

    
       e-mail:
        fullverifs@nccglobal.com  http://www.nccglobal.com

    

    

    

    

    

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          34

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    Appendix
      A to Escrow Agreement No. [      ]

     

    

     

    
       [DRAFT]

       

       LETTER
        OF
        AUTHORISATION

       

      

    

    
      
        

      

    

    

     

    (This
      document MUST
      be signed and returned to NCC Escrow on ["A"s] letterhead at the time of
      execution of the Escrow Agreement or no later than at time of deposit of the
      Source Code material owned by [A])

    

    

    In
      consideration of £1.00 (one sterling pound) paid by ["B"] receipt of which is
      hereby acknowledged by ["A"]

    The
      undersigned, [name of authorised signatory] of _["A"]_______________________
      hereby grants to, and confirms that _____["B"_]____________________
      has the authority, with regard to [name of "A"s software] software which is
      software licensed to     ["B"]___________
      under [the Licence Agreement] entered into by and between ["A"] and ["B"] dated
      _____________, to enter into the Escrow Agreement by and between/among __["B"]_______,
["C"]  ____
      and NCC Escrow International Limited, a copy of which is attached to this letter
      and initialled by the undersigned authorised signatory of ["A"] set forth below
      for and on behalf of ["A"].

    

    The
      undersigned confirms that ___["A"]______ is
      the
      owner of the intellectual property rights which form part of the Material
      described in Schedule 1 of the Escrow
      Agreement.

    

    I,
      the
      undersigned _______________ [name of Authorised Signatory] have read the Escrow
      Agreement and confirm that I am fully aware of its terms and conditions, in
      particular but not limited to the release events which will enable ["C"] to have certain
      rights to the Source Code material of [A’s software].

    

    

    

    

    

    Signed
      for and on behalf of ["A"]________________________________________

     

    (Authorised
      Signatory)

    

    Name           
      : _______________________

     

    Position                      
      : _______________________

     

    Date           
      : ________________________

     

    

    

    

    

    Please
      note the following when completing this document:

     

    

    
      	
              ·  

            	
              "A"
                = Intellectual Property Rights
                owner

            

    

     

    
      	
              ·  

            	
              "B"
                = The party authorised by "A" to enter into the Escrow
                Agreement

            

    

     

    
      	
              ·  

            	
              "C"
                = The Licensee under the Escrow
                Agreement

            

    

     

    
      	
              ·  

            	
              The
                IPR owner "A" should initial the first page of the attached
                Agreement.

            

    

     

    
      
        

      

    

    
      
        
          Source
            Code Escrow (Template) (Schedule 9 to CoA)

        

        
          35

          
            

          

        

        
          
          

          [
            * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED
            BY
            BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE
            COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
            AS
            AMENDED.

        

      

    

    

    

     

     

    SCHEDULE
      10

     

    LOCAL
      ATTACHMENTS

    

    (as
      updated from time to time)

    

     

    [Ainsert
      details of Local Attachments, if any]

    

    
      
        

      

    

    
      
        
          Local
            Attachements (Schedule 10 to CoA)

        

        
          36

          
            

          

        

        
           [*
            ] = CERTAIN
            CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
            HAS
            BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
            PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
            AMENDED.

        

      

    

    

      

      

      ANNEX
        C

      

      DOCUMENTATION

      

      [
        * ]

      

      
        
          

        

      

      
        
          Local
            Attachements
            (Schedule 10 to
            CoA)                                                             

        

      

      
        
          37

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