Document:

exv10w7

Exhibit 10.7

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

CONTRACT NUMBER: 678650.

CONTRACT RELATING TO: PROVISION OF IT SERVICES TO BT

This CONTRACT is made this 29th day of March, 2007

BETWEEN

(1) BRITISH TELECOMMUNICATIONS PLC(registered in England and Wales under Company Number: 1800000)
whose registered office is 81 Newgate Street, London, EC1A 7AJ

(“BT”)

(2) Virtusa UK Limited (registered in England under Company Number 05640127 whose registered office
is 1 Callaghan Square Cardiff CF10 5BT (“the Supplier”)

(referred together in the Contract as “the Parties”)

For the sum of L1 payable to it by BT, Supplier shall complete and deliver to BT such work and/or
equipment and/or services (as the case may be) as BT may order from time to time within the Term in
accordance with the Contract which comprises this signed front sheet and the following appended
documents:

	 	 	 
	1.

	 	DEFINITIONS
	2.

	 	SCHEDULE 1: COE GENERIC REQUIREMENTS
	3

	 	SCHEDULE 2: CONDITIONS OF CONTRACT
	4

	 	SCHEDULE 3: MODEL CLAUSES FOR DATA PROTECTION
	5

	 	SCHEDULE 4: BT SECURITY REQUIREMENTS AND POLICY
	6

	 	SCHEDULE 5: NOT APPLICABLE
	7

	 	SCHEDULE 6: IT SERVICES
	8

	 	SCHEDULE 7: NOT APPLICABLE
	9

	 	SCHEDULE 8: CHANGE CONTROL PROCESS
	10

	 	SCHEDULE 9: CONFIDENTIALITY AGREEMENT
	11

	 	SCHEDULE 10: GENERIC STANDARDS

and which, in the case of conflict, shall have precedence in the order listed unless expressly
stated otherwise in the Schedule.

	 	 	 	 	 	 	 	 	 	 	 
	SIGNED for and on behalf of SUPPLIER	 	 	 	SIGNED for and on behalf of BT	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

SIGNATURE
	/S/ KRIS CANEKERATNE	 	 	 	 	SIGNATURE	 	/S/ MERYL BUSHELL	 	 
	
 
	 	 	 	 	 	 	 	 	 	 
	NAME KRIS CANEKERATNE	 	 	 	NAME MERYL BUSHELL	 	 

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	POSITION	 	 	 	 	 	 	POSITION	 	 	CHIEF	 
	 	 	IN COMPANY	 	 	DIRECTOR	 	 	IN COMPANY	 	 	PROCUREMENT OFFICER	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

INDEX

	 	 	 	 	 
	 	 	PAGES	 
	DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	SCHEDULE 1- REQUIREMENTS
	 	 	6	 
	1. INTRODUCTION
	 	 	6	 
	2. DESCRIPTION AND SCOPE OF WORK
	 	 	6	 
	3. SUPPLY RELATIONSHIP-INTENTIONALLY DELETED
	 	 	6	 
	4. PLACE OF WORK
	 	 	6	 
	5. ORDER OF PRECEDENCE
	 	 	6	 
	 
	 	 	 	 
	SCHEDULE 2- CONDITIONS
	 	 	7	 
	1. TERM
	 	 	7	 
	2. ORDER OF PRECEDENCE
	 	 	7	 
	3. QUALITY OF SERVICES
	 	 	7	 
	4. QUALITY REQUIREMENTS
	 	 	7	 
	5. COMPLIANCE WITH LAWS AND REGULATIONS
	 	 	8	 
	6. ASSIGNMENT AND SUBCONTRACTING
	 	 	8	 
	7. SUPPLIER OBLIGATIONS
	 	 	9	 
	8. SERVICE LEVELS
	 	 	9	 
	9. CONTRACT PERSONNEL
	 	 	9	 
	10. INDUCTION AND TRAINING
	 	 	10	 
	11. KEY PERSONNEL
	 	 	10	 
	12. ACCESS, ASSISTANCE AND PROGRESS REPORTS
	 	 	10	 
	13. MISTAKES IN INFORMATION
	 	 	11	 
	14. BT ITEMS AND PROPERTY
	 	 	11	 
	15. FORCE MAJEURE
	 	 	12	 
	16. SOURCING WITH HUMAN DIGNITY
	 	 	13	 
	17. ENVIRONMENTAL IMPACT
	 	 	13	 
	18. ELECTRONIC TRADING
	 	 	14	 
	19. GROUP COMPANIES
	 	 	14	 
	20. BT RESTRUCTURING
	 	 	15	 
	21. REGULATORY MATTERS
	 	 	16	 
	22. EURO CONFORMANCE
	 	 	17	 
	23. CONFIDENTIALITY
	 	 	17	 
	24. BENCHMARKING
	 	 	19	 
	25. VARIATIONS
	 	 	19	 
	26. SUSPENSION OF WORK
	 	 	20	 
	27. WORK SITE AND SECURITY
	 	 	21	 

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

	 	 	 	 	 
	 	 	PAGES	 
	28. RISK ASSESSMENT
	 	 	23	 
	29. BT SECURITY POLICY REQUIREMENTS
	 	 	23	 
	30. PROTECTION OF PERSONAL DATA
	 	 	24	 
	31. TRANSFER OF UNDERTAKINGS
	 	 	26	 
	32. TAX AND NATIONAL INSURANCE
	 	 	27	 
	33. INTELLECTUAL PROPERTY
	 	 	27	 
	34. ESCALATION
	 	 	30	 
	35. WARRANTY
	 	 	31	 
	36. TITLE AND RISK
	 	 	33	 
	37. RIGHT TO REJECT
	 	 	34	 
	38. EXPORT
	 	 	34	 
	39. DOCUMENTATION
	 	 	35	 
	40. DELIVERY
	 	 	35	 
	41. DEFAULT/LIQUIDATED DAMAGES
	 	 	35	 
	42. TOOLING
	 	 	36	 
	43. TERMINATION
	 	 	36	 
	44. TRANSITION
	 	 	39	 
	45. EXIT STRATEGY COOPERATION
	 	 	41	 
	46. INDEMITY
	 	 	42	 
	47. LIMITATION OF LIABILITY
	 	 	43	 
	48. INSURANCE
	 	 	43	 
	49. PUBLICITY
	 	 	44	 
	50. SOFTWARE
	 	 	44	 
	51. SOFTWARE LICENCE
	 	 	44	 
	52. ESCROW
	 	 	45	 
	53. NOTICES
	 	 	46	 
	54. PRICING
	 	 	46	 
	55. PAYMENT AND INVOICING
	 	 	46	 
	56. GENERAL
	 	 	46	 
	57. NON-ASSIGNMENT
	 	 	47	 
	58. OPERATIONAL GOVERNANCE
	 	 	47	 
	 
	 	 	 	 
	SCHEDULE 3 MODEL CLAUSES FOR DATA PROTECTION
	 	 	48	 
	1. DEFINITIONS
	 	 	49	 
	2. DETAILS OF THE TRANSFER
	 	 	49	 
	3. THIRD-PARTY BENEFICIARY CLAUSE
	 	 	49	 
	4. OBLIGATIONS OF THE DATA EXPORTER
	 	 	50	 
	5. OBLIGATIONS OF THE DATA IMPORTER
	 	 	51	 
	6. LIABILITY
	 	 	52	 
	7. MEDIATION AND JURISDICTION
	 	 	53	 
	8. COOPERATION WITH SUPERVISORY AUTHORITIES
	 	 	53	 
	9. GOVERNING LAW
	 	 	54	 
	10. VARIATION OF THE CONTRACT
	 	 	54	 

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

	 	 	 	 	 
	 	 	PAGES	 
	11. OBLIGATION AFTER THE TERMINATION PERSONAL DATA PROCESSING
SERVICES
	 	 	54	 
	 
	 	 	 	 
	SCHEDULE 3 APPENDIX A
	 	 	56	 
	 
	 	 	 	 
	SCHEDULE 3 APPENDIX B
	 	 	57	 
	 
	 	 	 	 
	SCHEDULE 4 THE BT SECURITY POLICY FOR SUPPLIER
	 	 	58	 
	1. DEFINITIONS
	 	 	58	 
	2. BT SECURITY REQUIREMENTS AND SUPPLIER’S OBLIGATIONS
	 	 	59	 
	3. ACCESS
	 	 	61	 
	4. SECURITY REVIEW
	 	 	61	 
	5. TERMINATION
	 	 	62	 
	6. RIGHTS AFTER TERMINATIONS
	 	 	62	 
	7. ACCESS TO SUPPLIER SYSTEMS
	 	 	62	 
	8. BUSINESS CONTINUITY
	 	 	65	 
	 
	 	 	 	 
	SCHEDULE 4 APPENDIX 1- BT SECURITY POLICY (SEE SEPARATE PDF FILE)
	 	 	68	 
	 
	 	 	 	 
	SCHEDULE 4 APPENDIX 2 - BT HUMAN RESOURCES RECRUITMENT POLICY
	 	 	69	 
	1. SUPPLIER’S SELECTION PROCESS
	 	 	69	 
	2. VETTING OF CONTRACT PERSONNEL
	 	 	69	 
	3. REFERENCING
	 	 	71	 
	4. QUALITY OF CONTRACT PERSONNEL
	 	 	72	 
	 
	 	 	 	 
	SCHEDULE 4 APPENDIX 2 - ANNEX 1 CRIMINAL DISCLOSURE DECLARATION
	 	 	73	 
	 
	 	 	 	 
	SCHEDULE 5 INTENTIONALLY LEFT BLANK
	 	 	74	 
	 
	 	 	 	 
	SCHEDULE 6- IT SERVICES
	 	 	75	 
	1. SCOPE OF WORK
	 	 	75	 
	2. ORDERING PROCESS
	 	 	75	 
	3. GENERIC CONTACT PERFORMANCE REQUIREMENTS
	 	 	76	 
	4. MANAGEMENT INFORMATION
	 	 	77	 
	5. HOURS OF SERVICE
	 	 	77	 
	6. THIRD PARTY SOFTWARE LICENCE
	 	 	77	 
	7. QUALITY REQUIREMENTS
	 	 	78	 
	8. PRICING AND PRICING ARRANGMENTS
	 	 	78	 
	9. NOT USED
	 	 	79	 
	10. PRICE SATISFACTION
	 	 	79	 
	11. INTENTIONALLY DELETED
	 	 	79	 
	12. CONTINUOUS IMPROVEMENT
	 	 	79	 
	13. EXIT TRANSITION CO-OPERATION
	 	 	80	 

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

	 	 	 	 	 
	 	 	PAGES	 
	14. EXIT COSTS
	 	 	81	 
	15. ACCEPTANCE
	 	 	82	 
	 
	 	 	 	 
	SCHEDULE 6 APPENDIX 1 (PRICING)
	 	 	85	 
	1. IT SERVICES PRICING PRINCIPLES
	 	 	85	 
	2. PRICING MODELS
	 	 	92	 
	 
	 	 	 	 
	SCHEDULE 6- APPENDIX 2 WORK PACKAGE
	 	 	100	 
	1. DEFINITIONS
	 	 	100	 
	2. PROJECT BACKGROUND
	 	 	100	 
	3. DESCRIPTION AND SCOPE OF SERVICES
	 	 	100	 
	4. DELIVERABLES AND TRAINING AND DELIVERABLES
	 	 	102	 
	5. BT PROVIDED ITEMS
	 	 	102	 
	6. SUPPLIER PROVIDED EQUIPMENT
	 	 	102	 
	7. MAINTENANCE AND SUPPORT
	 	 	102	 
	8. BT SYSTEMS
	 	 	102	 
	9. NETWORK AND IT REQUIREMENTS
	 	 	103	 
	10. TIMETABLE
	 	 	103	 
	11. SITE
	 	 	103	 
	12. ACCEPTANCE
	 	 	104	 
	13. PERSONNEL
	 	 	104	 
	14. REPORTING
	 	 	104	 
	15. CHARGES
	 	 	105	 
	16. BT OBLIGATIONS
	 	 	105	 
	17. RISKS AND ASSUMPTIONS
	 	 	105	 
	18. QUALITY STANDARDS AND ASSURANCE, AND CODES OF PRACTICE
	 	 	105	 
	19. PERFORMANCE MEASUREMENT
	 	 	105	 
	20. ADDITIONAL
	 	 	105	 
	21. WORK PACKAGE PRICE
	 	 	105	 
	 
	 	 	 	 
	SCHEDULE 6- APPENDIX 2 WORK PACKAGE TEMPLATE-APPENDIX A
	 	 	106	 
	 
	 	 	 	 
	SCHEDULE 6- APPENDIX A, ANNEX 1
	 	 	108	 
	 
	 	 	 	 
	SCHEDULE 7- INTENTIONALLY LEFT BLANK
	 	 	108	 
	 
	 	 	 	 
	SCHEDULE 8- CHANGE CONTROL PROCEDURE
	 	 	111	 
	1. PRINCIPLES
	 	 	111	 
	2. PROCEDURES
	 	 	111	 
	 
	 	 	 	 
	SCHEDULE 9- CONFIDENTIALITY AGREEMENT
	 	 	113	 
	 
	 	 	 	 
	SCHEDULE 10- GENERIC STANDARDS
	 	 	114	 

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

	 	 	 	 	 
	 	 	PAGES	 
	1. CONTACT RESPONSE
	 	 	114	 
	2. TABLE OF COMPLIANCE
	 	 	114	 
	3. EMBEDDED BT GENERIC STANDARD 11 FOR COMPLETION
	 	 	114	 
	4. BT GENERIC STANDARDS 13 AND 18 FOR ACCESS AND COMPLETION
	 	 	114	 

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

DEFINITIONS

In the Contract, the following expressions, where used, shall have the meanings respectively
ascribed to them:

“ACCEPTANCE” means written acknowledgement by BT that Services, or part of them, have been
completed in accordance with the Specifications, subject to any deficiencies stated in such
acknowledgement. “Accept” and “Accepted” shall be construed accordingly;

“ACCEPTANCE TEST” means formal testing conducted to determine if the Work satisfies the criteria
for Acceptance to enable BT to Accept the Work or any part;

“BT” means British Telecommunications plc, its successors and assigns;

“BT’S COMMERCIAL CONTACT” means such person whose identity and contact details may be notified to
the Supplier’s Commercial Contact from time to time;

“BT DATA” or “BT’S DATA” means all data, information, addresses, telephone numbers, text, drawings,
diagrams, images or sound embodied in any electronic or tangible medium, and ( i ) which are
supplied or in respect of which access is granted to the Supplier by BT pursuant to this Contract,
or ( ii ) which the
Supplier is required to generate under this Contract, or ( iii ) which is obtained by the Supplier
on behalf of BT for the purposes of this Contract;

“BT GROUP COMPANY” means in relation to BT, a company which is a subsidiary or a holding company of
it, or any company which is a subsidiary of any such holding company, ‘holding company’ and
‘subsidiary’ having the meanings ascribed to them in section 736 Companies Act 1985 as amended;

“BT PROJECT MANAGER” means the BT operational representative the identity of who to be advised as
and when an order is placed through Work Package and/or Purchase Order;

“BT SYSTEM” means any equipment, databases, software and any other material owned and/or provided
by the Customer which BT uses or interfaces with in order to provide the Services;

“BT ITEMS” means all items provided by BT to the Supplier and all items held by the Supplier which
belong to BT in connection with this Contract;

“CHANGE CONTROL PROCEDURE” means the procedure under which the BT may make a request for a change
to the Contract, including a change to the Services, all as described in Schedule 10;

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

“CHARGES” means the sums payable for the Services as described in Schedule 12 of this Contract
and/or within each Work Package and/or Purchase Order;

“COMMENCEMENT DATE” means April 1st, 2007;

“CONTRACT” means this Contract including the schedules and appendices attached to it;

“CONTRACT PERSONNEL” means the Supplier’s employees, subcontractors and agents (and their
employees, subcontractors and agents) engaged in the performance of the Contract;

“CENTRES OF EXCELLENCE” means one of the domains to which the Services are mapped into;

“CREATED INFORMATION” all Information generated in the course of or arising from the performance of
the Contract;

“CUSTOMER” means BT external customer and who receive the benefit of the Services;

“DESIGN INFORMATION” means any Information provided by BT concerning the purpose, manufacture,
design or configuration of Services;

“EFFECTIVE DATE” means the commencement date of the applicable Work Package;

“EQUIPMENT” means all components, materials, plant, tools, test equipment, documentation, firmware,
Software, spares and parts and things comprised in Services;

“EXTENDED TERM” means extension of the Initial Term on twelve (12) monthly basis;

“FINANCIAL YEAR” means the period beginning April to the end of the following March;

“FUNCTIONAL SPECIFICATION” — the Supplier’s functional specification for the Software as supplied
to BT or as published by the Supplier;

“INFORMATION” means information whether in tangible or any other form, including, without
limitation, specifications, reports, data, notes, documentation, drawings, software, computer
outputs, designs, circuit diagrams, models, patterns, samples, inventions, (whether capable of
being patented or not) and know-how, and the media (if any) upon which such information is
supplied;

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

“INITIAL TERM” means a period of five years, commencing on the Commencement Date, or such longer
period as provided by the Contract;

“INTELLECTUAL PROPERTY RIGHT(S)” means any patent, petty patent, trade marks, service marks, trade
names, copyright, database rights, design right, community design right, semiconductor topography
right, registered design, rights in know-how, or any similar right in any part of the world and
shall include any applications for the registration of any patents or registered designs or similar
rights capable of registration in any part of the world;

“KEY PERFORMANCE INDICATORS” or “KPI’S” means the performance indicators which BT shall use as a
means of measuring and monitoring the performance of the Supplier of this Contract, as may be
amended by agreement in writing from time to time;

“LIQUIDATED DAMAGES” means the liquidated damages payable to BT in the event of a failure as set
out in each Work Package or payment by BT of liquidated damages under clause 1.7 of Schedule 6 of
this Contract.

“OFF-SITE TESTS” means all tests, specified in the Contract to be carried out on Services prior to
delivery to the Site;

“OFFSHORE WORKING DAY” means 8 hours in any business day.;

“PURCHASE ORDER” means the order issued by BT to Supplier detailing the Charges, the Equipment, the
Services and any other relevant information being ordered by BT and shall be deemed accepted when
duly authorised and issued by BT under this Contract;

“REPLACEMENT WORK” means re-allocation of the Work provided by the Supplier under this Contract to
BT or another supplier as notified by BT;

“SERVICES” means the service or where appropriate part of a service described in this Contract and
Schedule 5, 6 and 7 which include all Equipment, Information and Work supplied to BT by Supplier;

“SERVICE LEVELS, SLAS, SERVICE LEVEL AGREEMENT” means the document attached to the Contract in the
Work Package defining the service levels applicable to the Services;

“SITE” means location(s) or premise(s) specified by BT, upon which the Supplier is to provide
services, install and/or deliver Services or perform Work;

“SOFTWARE” means all computer programs including but not limited to all source code and object code
whether in machine readable, optically readable or any other format comprised in Services and the
media on which it is supplied;

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

“SPECIFICATION” any specification of Services provided by BT, and agreed to by the Supplier in each
Work Package and/or Purchase Order under this contract.

“STATEMENT OF REQUIREMENTS” means the project plan document or statement of work issued by BT to
the Supplier, and agreed to in writing by Supplier, detailing all of the responsibilities and
deliverables by Supplier to BT;

“SUBCONTRACTOR” means any person, partnership or corporation with whom the Supplier places a
contract and/or an order for the supply of any equipment, item, service or for any work in relation
to the Contract, and “Subcontract” shall be construed accordingly;

SUPPLIER’S BACKGROUND INFORMATION” means any Information owned or controlled by the Supplier;

“SUPPLIER’S COMMERCIAL CONTACT” such person whose identity and contact details may be notified to
BT’s Commercial Contact from time to time;

“SUPPLIER’S EQUIPMENT” means all items except BT Items brought onto Site by the Supplier in
connection with, but not for incorporation in the Services, and which have not been supplied by BT;

“SUPPLIER SYSTEM” means any equipment, databases, software and any other material owned and/or
provided by the Supplier which the Supplier uses or interfaces with in order to provide the
Services;

“SYSTEMS” means the combination of telecommunications and computer hardware, computer software,
computer peripherals and other items which the Supplier has and/or may develop and/or supply
hereunder in order to perform the Services including the Supplier’s business organisation and
processes;

“TERM” means both Initial Terms and Extended Term

“UK WORKING DAY” means between the hours of 08:00 and 18:00, Monday to Friday;

“WORK” means work the Contract requires to be undertaken for BT.

“WORK PACKAGE” means a request for Services, in the form attached hereto as Schedule 6, issued by
any BT Group Company to the Supplier pursuant to which the Supplier is to provide Services to such
BT Group Company in accordance with the specifications set forth therein if accepted by the
Supplier, such acceptance to be evidenced by a signature of the authorised representative of the
Supplier.

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

SCHEDULE 1 — REQUIREMENTS

1. INTRODUCTION

1.1 This Contract governs the relationship between the Parties for the supply of Services by the
Supplier to BT. It is intended as a broad agreement between the Parties under which BT shall
procure Services from the Supplier. Each Work shall be performed in accordance with BT’s COE
Generic Requirements and the Conditions of the Contract, including BT Generic Standards
(hereinafter collectively referred to as “Terms and Conditions”) and all the Schedules appended
herein in this Contract.

1.2 These Schedules shall be supplemented or varied to meet the requirements of BT through agreed
Statement of Requirements and authorised Work Packages and/or Purchase Order.

2 DESCRIPTION AND SCOPE OF WORK

2.1 The Supplier shall provide the following provision of Services in the Initial Term and Extended
Term (as the case may be) in order to support the range of BT products and services:

2.1.1 INTENTIONALLY LEFT BLANK.

2.1.2 A range of IT Services to BT, including, but not exclusively, all or some of the IT Services
listed below in Schedule 6 (“IT Services”).

2.1.3 INTENTIONALLY LEFT BLANK

2.1.4 INTENTIONALLY LEFT BLANK

2.2 Further particulars of the Services are described in Schedule 6 herein.

3 SUPPLY RELATIONSHIP-INTENTIONALLY DELETED

4 PLACE OF WORK

Work shall be undertaken at the BT and/or Customer site and/or Supplier’s Site/s as required by BT
and confirmed in the Work Package and/or Purchase Order.

5 ORDER OF PRECEDENCE

To the extent that the following documents form part of or apply to the Contract, in the case of
conflict they shall have the following order of precedence:

1 signed Purchase Order or Work Package (as the case may be)

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COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

2 the Contract

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

SCHEDULE 2 — CONDITIONS OF CONTRACT

1 TERM

1.1 The Contract shall commence on the Commencement Date and shall remain in force for the Term
(“Initial Term”) unless extended or terminated in accordance with its provisions.

1.2 BT shall have
the option to extend the Term by a further period of twelve (12) months each time, such option to be exercised by BT giving reasonable period of written notice
(“Extended Term”) to that effect to the Supplier’s Commercial Contact on or before prior to the end
of the initial Term or Extended Term (as the case may be) effective upon the prior written consent
of Supplier. In
the event the Contract is extended, BT reserves the right to contract on the terms and conditions
in this Contract and/or by mutual agreement agree with the Supplier amended terms and conditions.

1.3 For the avoidance of doubt, BT shall be under no obligation to place any orders and/or Work
under the Contract.

2 ORDER OF PRECEDENCE

For the avoidance of doubt in the event of discrepancies or conflict between the documents
comprising this Contract, the terms of these documents shall prevail in the order shown on the
signed front sheet of the Contract.

3 QUALITY OF SERVICES

3.1 Services shall comply in all material respects with the:

(a) Specifications. The warranty for any deliverable produced by the Services shall be as set forth
in Section 35; and

(b) latest applicable issue from time to time of UK, European and International Standards and other
documents referred to in the Contract.

3.2 The Supplier shall co-operate in any quality assessment required by BT from time to time and
allow BT or its representatives access to its premises (and those of any Subcontractor) for this
purpose.

4 QUALITY REQUIREMENTS

4.1 The Supplier shall work to a Quality Management System that meets the requirement of BS/ISO9000
or equivalent, such as CMMiL3 or above. A body approved by any of the National Accreditation
Councils must issue the certificate, if applicable.

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COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

4.2 The Supplier will carry out and be able to supply evidence of periodic quality checks (at least
quarterly) to ensure the consistency of delivery of the Services, and the provision of management
information as agreed.

4.3 If the Supplier, having had at the Commencement Date a Quality Management System certified to
comply with the requirements of BS/ISO9001 (EN 29001 or other equivalent) by an accredited
certification body, ceases to maintain the certification, then the Supplier, for avoidance of
doubt, shall be in breach of the Contract. (This shall also apply to any sub-contractors that may
be used).

4.4 Additionally, the Supplier shall consider steps to meet the requirements of BS15000. Supplier
shall provide a report of its current status regarding same.

5 COMPLIANCE WITH LAWS AND REGULATIONS

5.1 The Supplier and the Services shall comply with all relevant laws and regulations from time to
time, with any Site regulations that may be notified to the Supplier, and with the latest
applicable issue of ‘Working with BT (Distribution Guidelines)’ available
at:http://www.selling2bt.bt.com/working/distribution/default.asp

5.2 The Supplier shall notify BT if it becomes aware of any non-compliance or receives any
allegation of non-compliance with any relevant laws and regulation by any person in connection with
the Services. Without prejudice to the foregoing, the Supplier shall provide BT with such
assistance as BT may reasonably request to investigate any breach or suspected breach or correct
any breach of the relevant laws and regulations. The Supplier shall on BT’s request, promptly take
all reasonable action that is necessary and open to the Supplier in order to minimise the impact of
the breach and any suspected breach of the relevant laws and regulations.

5.3 The Supplier shall provide to BT such information in such format as BT shall from time to time
reasonably require concerning the weight and material composition of any packaging forming part of
or accompanying Services.

6 ASSIGNMENT AND SUBCONTRACTING

6.1 The Supplier shall not assign or subcontract the whole or any part of the Contract without BT’s
prior written consent, which, if given, shall not affect the Supplier’s obligations or liabilities
under the Contract.

6.2 The Supplier shall allow BT or its nominated representative(s) access to its Subcontractors for
discussions in relation to the Contract provided

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

that the Supplier is informed of the proposed agenda and the
outcome of the discussions.

7 SUPPLIER OBLIGATIONS

7.1 The Supplier shall perform the Services in accordance with the Specifications in the Work
Packages and all other applicable provisions of this Contract. The warranty for any deliverable
produced by the Services shall be as set forth in Section 35.

7.2 The Supplier shall provide BT with a reasonable number of copies of any promotional literature
relating to the Services which the Supplier may produce from time to time.

7.3 The Supplier shall give BT reasonable advance written notice of any change in or modification
of the Services or of the Suppliers intention to discontinue any part of the Services.

7.4 Subject to Section 35 below, the Services when properly used will conform and operate in all
respects with the Statement of Requirements and the technical and functional Specifications for the
Warranty Period.

7.5 The Supplier shall not accept any request for procurement of Services from BT employees without
obtaining express consent from BT through duly authorised and signed Work Package and/or Purchase
Order.

8 SERVICE LEVELS

8.1 The Supplier shall ensure that the Services are performed substantially by Contract Personnel
of the Supplier.

8.2 The Supplier shall provide the Services in accordance with the Service Levels in the individual
Work Package and/or Purchase Order requirements, unless otherwise agreed.

8.3 If at any time after the Effective Date of the individual Work and/or Purchase Order
requirements the Services are not supplied in accordance with the Service Levels, the Supplier
shall, without prejudice to BT’s other rights and remedies make the necessary arrangements as
agreed in the Individual work Package.

8.4 The remedies provided in this Clause headed “Service Levels” are without limitation to any
other remedies BT or the Supplier may have under this Contract or at common law or equity in
connection with Service non compliance.

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

9 CONTRACT PERSONNEL

9.1 The Supplier shall ensure that all Contract Personnel are competent, appropriately qualified
and meet with BT’s reasonable satisfaction.

9.2 The Supplier shall not (and shall ensure so far as possible that Contract Personnel shall not)
during the Term or during a period of six months immediately after, either on its own behalf or on
behalf of any other person, firm, company or organisation directly or indirectly induce or seek to
induce any person, firm or company who at any time during the Term is or was a BT customer or in
the habit of dealing with BT, and with whom the Supplier has had dealings because of or in
connection with the performance of the Contract, to remove his or its business from BT.

9.3 Neither Supplier nor BT shall directly or indirectly induce, encourage, or seek to induce any
employee of the other Party to leave such Party’s employment during the Term or during a period of
six months immediately after, either on its own behalf or on behalf of any other person, firm,
company or organisation.

9.4 A Party shall not be in breach of this provision if it recruits any of the other Party’s
employees pursuant to an advertisement or a recruitment campaign not specifically targeted at the
employees of the other Party.

10 INDUCTION AND TRAINING

The Supplier shall provide the necessary induction and introductory training before new personnel
are actively deployed on any Work to the reasonable satisfaction of BT.

11 KEY PERSONNEL

11.1 The BT Project Manager may at the outset of or from time to time as agreed in writing with the
Supplier, during the currency of any project inform the Supplier in writing of the names of any
Contract Personnel BT considers are to perform key roles in relation to the assignment (“Key
Personnel”).

11.2 The Supplier shall not change or remove or permit the change or removal of any Key Personnel
without obtaining the prior written consent of the BT Project Manager. This clause shall however
not apply to a case of retirement, resignation or termination of employment of any key personnel
for whatever reason by the Supplier.

11.3 The Supplier shall remove from any assignment such Contract Personnel as BT may from time to
time require forthwith upon written notice including justification given by the BT Project Manager
to the

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

Supplier where BT in its sole discretion considers circumstances justify it, or otherwise, in any
case:

(a) upon the expiry of at least one week’s written notice given by the BT Project Manager to the
Supplier during the first eight weeks of any relevant assignment; or

(b) upon the expiry of at least four weeks’ written notice thereafter.

12 ACCESS, ASSISTANCE AND PROGRESS REPORTS

12.1 The Supplier shall:

(a) give to BT (or any person authorised by BT) such access at all reasonable times to the
Supplier’s and any Subcontractor’s premises as BT may require from time to time to assess the
progress of the Contract;

(b) provide such reports to BT and attend such meetings on the performance of the Contract as may
be reasonably required by BT; and

(c) nominate a representative, familiar with all relevant aspects of the Contract, to attend all
such meetings.

12.2 The Supplier shall maintain full and accurate records (“the Records”) of all the Services
performed in connection with this Contract. The Supplier shall retain the Records for a period of
six years after termination or expiry of the Contract. Records shall pertain to areas including,
but not limited to, Corporate Tax, VAT, employment, source codes, invoices etc.

12.3 The Supplier shall grant to BT, any auditors (internal or external as appointed by BT) and/or
their respective authorised agents the right of access to the Records and/or any Site and/or the
Materials and/or the Systems and all supporting documentation and shall provide all reasonable
assistance at all times during the Term of this Contract and for any reasonable period thereafter
for the purposes of carrying out an audit of the Supplier’s compliance with this Contract including
but not limited to all activities, charges, performance, security and integrity in connection
therewith. Provided that such audit shall (i) occur at BT’s cost and expense and only on reasonable
prior written notice to Supplier, (ii) be subject to confidentiality provisions herein (iii) be
limited to BT’s records and related contracts and used solely to determine Supplier’s compliance
with this Agreement. For the avoidance of doubt, Supplier shall not be obligated to disclose any
information of any kind related directly or indirectly to any other client of Supplier or any other
information subject to a confidentiality agreement.

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

13 MISTAKES IN INFORMATION

13.1 The Supplier shall inform BT in writing of any mistakes in Design Information within a
reasonable time of receiving it.

14 BT ITEMS AND PROPERTY

14.1 All BT Items shall remain the property of BT and the Supplier shall:

(a) return them to BT upon completion or termination of the Contract or earlier reasonable
request by BT;

(b) keep them securely and good condition, segregated and clearly marked as BT
property; and

 (c) be fully liable for any loss of or damage to them.

14.2 Upon receipt of any BT Items, the Supplier shall satisfy itself that they are adequate for the
purpose for which they are being provided, and within 14 days of receipt shall notify BT of any
defects or deficiencies.

14.3 The Supplier shall not, without the prior written consent of BT, use BT Items for any purpose
other than as necessary for the performance of the Contract, or allow any third party to use, take
possession of, or have any rights or lien over BT Items.

14.2 The Supplier shall not have, and shall ensure that Subcontractors shall not have, a lien on BT
Items for any sum due. The Supplier shall take all reasonable steps to ensure the title of BT and
the exclusion of such lien are brought to the notice of all Contract Personnel dealing with any BT
Items.

14.4 If there is any threatened seizure of any BT Items, or if the Supplier (or any Subcontractors
in possession of such BT Items) goes into receivership, administration or liquidation (or the
equivalent of any of these) the Supplier shall:

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

(a) notify BT immediately;

(b) draw to the attention of the relevant official that BT Items belong to BT and do not form part
of the Supplier’s assets; and

(c) allow BT to enter the Supplier’s premises or those of any Contract Personnel where BT Items are
stored and take possession of them.

15 FORCE MAJEURE

15.1 Neither party shall be liable to the other party for any delay in the performance of the
Contract directly caused by any force majeure event beyond its reasonable control (“the Delay
Period”) provided such party shall have first given the other party written notice within seven
days after becoming aware that such delay was likely to occur.

15.2 If the Supplier is so delayed, and the Delay Period exceeds 14 days, BT shall have the option
by written notice to the Supplier to terminate the Contract immediately in whole or in part and
have no liability for the whole or part so terminated.

15.3 For the avoidance of doubt, the provisions of this Condition shall not affect any right to
terminate the Contract under the Condition headed “Termination”.

16 SOURCING WITH HUMAN DIGNITY

The following expressions are used in this Condition:

“GS18” — the BT Sourcing with Human Dignity Generic Standard and Principles of Implementation at
the Website.

“Response” — a response to the GS18 questionnaire at the Website; and

“Website” — the website at
http://www.selling2bt.com/working/humandignity/default.asp

The Supplier shall:

(a) aspire to GS18 standards with a view to the Supplier and Contract Personnel achieving them;

(b) if requested by BT, provide BT with a full Response within two months of the date of the
request;

(c) promptly submit to BT a revised Response upon any material change in the previous Response at
any time during the Term;

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

(d) where required work with BT towards the achievement of the GS18 standards (and use its
reasonable endeavours to ensure all Contract Personnel will so work with BT and the Supplier); and

(d) co-operate with BT and permit BT and its authorised representatives on reasonable notice access
to the Supplier’s premises and records in order to assess compliance with this provision and the
level of achievement of GS18 (and use its reasonable endeavours to ensure BT has similar rights in
relation to Contract Personnel co-operation, premises and records).

17 ENVIRONMENTAL IMPACT

The following expressions are used in this Condition:

“Response” — a
response to the GS13 questionnaire (version 9) at the Website.

“Website” — the website at
https://secure.selling2bt.bt.com/ext/html/gs13/

The Supplier shall:

(a) if requested by BT, provide BT with a full Response within two months of the date of the
request;

(b) promptly submit to BT a revised Response upon any material change in the previous Response at
any time during the Term; and

(c) when BT identifies areas that require environmental improvement within the bounds of this
contract requirement, the Supplier shall work with BT towards achieving continuous improvement in
such areas.

18 ELECTRONIC TRADING

18.1 BT shall send and the Supplier shall accept orders under the Contract only, subject to
paragraph 3 of this Condition, by secure e-mail.

The Supplier shall:

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

(a) provide a functional SMTP e-mail account for the receipt of orders;

	 	(b)	 	ensure its respective e-mail client conforms to S/MIME and other
general e-mail standards;
	 
	 	(c)	 	provide to BT a Class 2 digital certificate for the encryption of
e-mails to it, such certificate being issued by a reputable
certification provider and complying the requirements of the Electronic
Communication Bill section 7; and

(d) use all reasonable commercial efforts to maintain efficient secure e-mail transmission and
reception at all times.

18.2 If, despite having used all reasonable commercial efforts, either Party is unable to transmit
or receive secure e-mails in accordance with this Condition, it shall promptly inform the other
Party, whereupon, for the duration of such inability, BT shall submit orders to the Supplier
conventionally.

19 GROUP COMPANIES

19.1 For the purposes of this Condition, “BT Group Company” shall mean any company from time to
time in the same group (as defined by s.53 Companies Act 1989) as BT.

19.2 At the joint request of BT and any BT Group Company, the Supplier shall fulfil any order
received by such BT Group Company during the Term for Services the same as or substantially similar
to the Services. Such fulfilment shall be on the same terms and conditions (mutatis mutandis)
(excluding this Condition) and at the same or, at the Supplier’s discretion, lower price(s) as are
set out in the Contract.

19.3 BT shall have no liability to the Supplier for or in connection with any order placed by any
BT Group Company nor shall BT have its rights under the Contract prejudiced by the acts or
omissions of any BT Group Company.

19.4 Notwithstanding anything to the contrary in the Contract, BT shall have the right to disclose
to any BT Group Company on a confidential basis all relevant Information in respect of the
Contract.

20 BT RESTRUCTURING

20.1 For the purpose of this Condition:

“BT Affiliate” means a company in which BT owns from time to time, directly or indirectly, at least
20% of the voting share capital.

“Nominee” means any:

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

(a) company in the BT Group of companies from time to time;

(b) BT Affiliate;

(c) unaffiliated new company that may be formed by BT pursuant to a corporate
reorganisation/restructuring, including any company in the same Group as such new company; or

(d) third party which by purchase, lease, outsourcing agreement or otherwise, assumes the
operation, administration and/or management of any substantial portion of the business of BT
affected by the Contract.

20.2 At BT’s written request, the Supplier agrees to the novation of the Contract (“Novation”) from
BT to any Nominee as may be nominated by BT (“the Transferee”).

20.3 The Supplier and BT shall promptly do all acts and things necessary to effect the Novation,
including the signing of a novation agreement, in such form as BT shall reasonably require, which
agreement shall effect, without limitation:

(a) an assumption by the Transferee of all rights, obligations and liabilities of BT under the
Contract (including rights, licences, obligations and liabilities that are accrued or expressed to
be non-transferable, personal or otherwise but excluding the right to novate as conferred by this
Condition); and

(b) a release by the Supplier of BT from all obligations and liabilities (including accrued
obligations and liabilities) of BT under the Contract

20.4 Following the Novation, nothing in the Contract (including, without limitation, any software
licences) shall prevent the Transferee as a contractor to BT from using the Services to provide BT
with goods and/or services.

20.5 At BT’s written request, the Supplier agrees to the replication of the Contract for any
Nominee nominated by BT, so creating one or more additional agreements, each between the Supplier
and such Nominee and each identified by its own contract number, but containing the terms and
conditions of the Contract (mutatis mutandis) including, without limitation, the same or lower
prices, but excluding the right to replicate as conferred by this Condition. BT shall provide
copies of the replicated agreement(s) for execution by the Supplier and shall procure their
execution by the relevant Nominee(s).

20.6 If the Contract includes a commitment to purchase a stated or determinable quantity of goods,
services or rights, or prices that vary

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

based on the quantities purchased, the total purchases by BT and/or the Nominees under the Contract
and/or the replicated agreements will be aggregated in determining the quantity or prices.

20.7 Notwithstanding anything to the contrary in the Contract, BT shall have the right to disclose
to any Nominee on a confidential basis all relevant information regarding the Contract.

21 REGULATORY MATTERS

21.1 The Supplier shall comply with all Regulatory Matters (including, without limitation, any
actions that BT may require in accordance with any formal or informal undertaking given in response
to, or with the object of avoiding being made, any orders, provisional orders, determinations,
directions, decisions or interventions by a relevant regulatory authority) that are notified to the
Supplier Regulatory Contact from time to time by the BT Regulatory Contact in so far as they relate
to the performance of the Contract by the Supplier.

21.2 The Supplier shall ensure that it and Contract Personnel undertake and comply with such
training and guidance as the BT Regulatory Contact may provide or specify from time to time in
relation to Regulatory Matters.

21.3 The Supplier shall promptly provide such information to BT as shall be necessary for BT to
respond fully and to the timescale required to any request or requirement for information from a
government or any regulatory body, to the extent that such information relates to the performance
of the Contract by the Supplier.

21.4 BT shall reimburse the Supplier for all costs and expenses incurred by it in the performance
of its obligations under Paragraphs 2 and/or 3 and/or 4 of this Condition to the extent that such
costs and expenses:

(a) would not have been incurred by the Supplier but for this Condition;

(b) are incurred solely, necessarily and exclusively in relation to such
obligations;

(c) are
reasonable;

(d) are validated to BT’s reasonable
satisfaction;

(e) are not provided for under another term of the Contract;
and

(f) do not result from acts or omissions of the Supplier which contravene or conflict with any
Regulatory Matters previously notified to the Supplier by the BT Regulatory Contact.

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

21.5 The Supplier shall permit BT and/or its authorised agents such access to the Supplier’s
premises and such access to and copies of its Information (and to and of those of any Contract
Personnel) as is reasonable for BT to assess and/or validate the Supplier’s performance of its
obligations and/or its costs and expenses under or in relation to this Condition.

22 EURO CONFORMANCE

22.1 For the purpose of this Condition, “Financial Services” means those Services that process
financial information.

22.2 The Supplier warrants that all Financial Services, in processing Financial Information, comply
with:

(a) all laws and regulations applicable to all relevant currencies (including, without limitation,
EC Regulations 1103/97 and 974/98); and

(b) if the UK becomes a “participating Member State” (as defined in EC Regulation 1103/97), all
laws and regulations then applicable to sterling and/or to the euro (“Euro Conformance”).

22.3 Notwithstanding anything to the contrary in the Contract, and without prejudice to any of BT’s
other rights and remedies, BT shall not be obliged to accept nor to pay for financial Services if
the Supplier is unable to demonstrate their Euro Conformance to BT’s reasonable satisfaction.

23 CONFIDENTIALITY

23.1 Subject to the Condition
headed “Intellectual Property”, either party receiving Information
(“the Recipient”) from the other shall not without the other’s prior written consent use such
Information except for Contract purposes or disclose such Information to any person other than BT’s
employees, agents and contractors or Contract Personnel who have a need to know and who are bound
by equivalent obligations of confidentiality. Any breach of such obligations by Contract Personnel
or BT’s employees, agents or contractors (as the case may be) shall be deemed to be a breach by the
Supplier or BT respectively.

23.2 Paragraph 1 of this Condition shall not apply to Information that is:

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IN CONFIDENCE

(a) published except by a breach of the Contract; or

(b) lawfully known to the Recipient at the time of disclosure and is not subject to any obligations
of confidentiality; or

(c) lawfully disclosed to the Recipient by a third party without any obligations of
confidentiality; or

(d) replicated by development independently carried out by or for the Recipient by an employee or
other person without access to or knowledge of the Information.

Notwithstanding the foregoing, either Party may disclose, only with the prior written consent of
the other party, not to be unreasonably withheld, such terms as are required to be disclosed under
strictures of confidentiality for fund raising or financing efforts to investors and lenders and
bona fide potential investors and lenders (except no consent is needed to provide to a party’s
auditors or attorneys) provided, however, that the receiving parties are bound by confidentiality
terms no less restrictive than the terms set forth herein. In addition, the Agreement and terms
hereof may be disclosed as otherwise but only to the extent required pursuant to applicable law,
regulation or stock market or stock exchange rule; provided that, to the extent practicable, a
Party proposing to make such a disclosure as required by law, rule or regulation shall inform the
other Party a reasonable time prior to such required disclosure, shall provide the other
Party with a copy of the text of such proposed disclosure sufficiently in advance of the proposed
disclosure to afford such other Party a reasonable opportunity to review and comment upon the
proposed disclosure (including, if applicable, the redacted version of this Agreement) and shall
reasonably consider, consistent with applicable law, rule and regulation (including interpretations
thereof), the requests of the other Party regarding confidential treatment for such disclosure.

23.3 The Supplier shall not publicise the Contract without BT’s prior written consent and shall
ensure that any subcontractor is bound by similar confidentiality terms to those in this Condition.

23.4 Either party that has during the course of the Contract received Information in a recorded
form from the other (or has recorded received Information) shall return or destroy (at the option
of the disclosing party) such records upon:

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IN CONFIDENCE

(a) expiry or termination of the Contract;
or

(b) upon earlier request

unless such
records are part of the Services.

23.5 This Condition shall survive the Contract.

24 BENCHMARKING

The Supplier shall:

(a) undertake its own benchmarking exercises annually at a date to be agreed upon by the Parties;

(b) undertake such further regular benchmarking exercises as may be required by BT from time to
time, having first agreed with BT the related processes and comparable suppliers;

(c) promptly provide written reports to BT on such exercises with an audit trail;

(d) provide evidence to BT that the quality, price and delivery of Services is world class;

(e) permit BT’s authorised representatives access to the Supplier’s premises and to its records to
inspect and verify such exercises, evidence and reports and/or to allow BT to conduct its own
benchmarking exercises, provided that such benchmarking exercises shall (i) occur at BT’s cost and
expense and only on reasonable prior written notice to Supplier, (ii) be subject to confidentiality
provisions herein (iii) be limited to BT’s records and related contracts and used solely to
determine Supplier’s compliance with this Agreement. For the avoidance of doubt, Supplier shall not
be obligated to disclose any information of any kind related directly or indirectly to any other
client of Supplier or any other information subject to a confidentiality agreements; and

(f) fully co-operate with BT during any benchmarking exercise undertaken by BT.

The Supplier’s obligations under this Condition shall be performed at the Supplier’s cost and
expense, except as stated in 24 (e).

25 VARIATIONS

25.1 BT shall have the right from time to time during Term by written notice to require the
Supplier to alter, amend, add to or otherwise vary any part of the Services (“Variation”) and the
Supplier shall carry out such

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IN CONFIDENCE

Variation as agreed in writing by Supplier which agreement shall not be unreasonably withheld. No
Variation required by BT shall render the Contract null and void.

25.2 The price(s) payable by BT for Services subject to the Variation shall be increased or
decreased by a fair and reasonable amount and any dependent contractual time-scales shall be
adjusted by a fair and reasonable amount. The Supplier shall satisfy BT of the reasonableness of
any change in prices and/or time-scales and undertakes:

(a) to afford facilities to BT’s nominated representative to visit the Supplier’s premises for the
purpose of examining the process involved in the execution of the Variation and estimating or
ascertaining the cost of executing it; and,

(b) to provide BT with such particulars of costings in connection with the Variation as may be
required by BT and to permit them to be verified by a representative of BT through inspection of
its books, accounts and other documents and records, provided that such inspection shall (i) occur
at BT’s cost and expense and only on reasonable prior written notice to Supplier, (ii) be subject
to confidentiality provisions herein (iii) be limited to BT’s records and related contracts and
used solely to determine Supplier’s compliance with this Agreement. For the avoidance of doubt,
Supplier shall not be obligated to disclose any information of any kind related directly or
indirectly to any other client of Supplier or any other information subject to a confidentiality
agreements

25.3 No Variation shall be carried out unless requested in writing by BT’s Commercial Contact or
requested by Supplier but agreed to by BT’s Commercial Contact in writing. Any Variation carried
out other than in accordance with this Condition shall be the sole responsibility of the Supplier
and shall not result in any increase in the price(s) payable by BT or in any variation in
time-scales.

26 SUSPENSION OF WORK

26.1 BT may suspend Work at any time and will pay to the Supplier all reasonable resulting expenses
incurred by the Supplier (other than those arising from the Suppliers own default) provided that;

(a) no payment shall be made for any period of suspension, prevention or delay of less than 2
consecutive days; and

(b) the Supplier has within 10 days after the event giving rise to the claim, given written notice
to BT of its intention to make such a claim; and

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IN CONFIDENCE

(c) the Supplier makes such claim giving full details of each item claimed and the reason for such
cost within 30 days after the event giving rise to the claim.

26.2 The Supplier
may suspend Work if BT fails, neglects or refuses to conform with the following
provisions in the Contract:

a) Non-Solicitation in Condition 9.3

b) Payment
Obligation in Condition 55

c) Confidentiality in Condition 23

and BT will pay to the Supplier all reasonable resulting costs and expenses incurred by the
Supplier (other than those arising from the
Supplier’s own default). Notwithstanding the above the Supplier shall promptly notify BT’s
Commercial Contact in the event the Supplier finds BT not in conformance with a, b, or c above.
Both Parties shall invoke the escalation procedure in accordance with the heading “Escalation” to
resolve the non-conformance within 10 days. Where the non-conformance is not resolved within 10
days through the escalation procedure, the Supplier may suspend Work in relation to the Work
Package as provided above.

27 WORK SITE AND SECURITY

27.1 The Supplier shall be deemed to have examined the Site and BT shall not be liable for any
claim from the Supplier in relation to its misinterpretation of any Site-related matter, or any
other matter in respect of which the Supplier could reasonably have satisfied itself by a visit to
the Site, reference to BT or otherwise.

27.2 The Supplier shall before the commencement of any relevant Work inform BT of the number of
employees to be brought onto the Site.

27.3 The Supplier shall designate one or more competent representatives to supervise the carrying
out of the Work on the Site (the “Supplier’s Representative”), whose names shall be notified to BT
in writing, and who shall be present on the Site continuously between 0800 and 1800 Monday to
Friday excluding all relevant UK public holidays (“the Working Hours”). Any orders or instructions
BT gives to the Supplier’s Representative shall be deemed to have been given to the Supplier.

27.4 Where Work is to be carried out on a BT Site, BT shall wherever possible and reasonable
provide such facilities during Working Hours or such reasonable working hours as may be applicable
to each Site as are agreed between BT and the Supplier. The Supplier shall satisfy BT

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IN CONFIDENCE

that the power arrangements meet any safety provisions as may be applicable to the Site. Any
statement of satisfaction by or on behalf of BT shall be without prejudice to the obligations and
liabilities of the Supplier.

27.5 The Supplier shall give at least 7 days written notice to BT of the dates and times on which
it proposes to deliver any Services or Supplier’s Equipment to the Site and shall upon despatch of
Services or Supplier’s Equipment to Site notify BT of their details in writing.

27.6 No Services or Supplier’s Equipment shall be removed from any Site without BT’s written
consent and, if given, the Supplier shall provide a receipt to BT or BT’s site representative
listing full details of the Services or Supplier’s Equipment removed. The Supplier shall ensure
that no BT Items, facilities or materials are used or removed from any Site without BT’s written
consent and shall immediately notify BT of any known or suspected breach of security and give BT
full co-operation in any investigation.

27.7 The Supplier shall remove Supplier’s Equipment and any defective Services leaving the Site
clean and in good condition, either:

(a) immediately before submitting Services for Acceptance; or

(b) at any time before Acceptance, subject to 20 days written notice from BT.

27.8 The Supplier shall hand to BT any existing BT Items or materials recovered as a result of the
Work if they are not to be used to meet the requirements of the Contract or deliver them to such
place as directed by BT.

27.9 If the Supplier fails to remove Supplier’s Equipment from Site as specified above, then BT may
remove it at the Supplier’s risk and expense.

27.10 The Supplier shall ensure that Contract Personnel comply with all security, safety and works
regulations and such other local instructions as may be notified by BT or BT’s customer whilst on
any Site.

27.11 BT may remove from and refuse entry and re-admission to a Site any person who is, in the
reasonable opinion of BT, not complying with the requirements of this Condition or not a fit person
to be allowed on Site.

27.12 BT may at its discretion, search any Contract Personnel or their vehicles or equipment upon
any BT Site or upon entry to and departure from any Site. The Supplier shall use its best
endeavours to ensure that Contract Personnel are aware of and comply with these requirements and
that no Contract Personnel unwilling to so comply will be employed on any Site.

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IN CONFIDENCE

27.13 The Supplier shall (and shall ensure Contract Personnel shall):

(a) access only those parts of Sites strictly necessary for the purposes of the
Contract; and

(b) comply with the BT Security Access Policy set out at:

http://www.selling2bt.com/working/third_party_access/default.asp ; and

(c) use any equipment or lines provided by BT only for the purposes of the Contract, and, in
particular shall not use BT equipment or lines for personal use.

27.14 The Supplier shall undertake a risk assessment and use appropriate physical and electronic
security measures to use all reasonable endeavours to safeguard any BT Items against loss or theft.
BT shall have the right to examine such arrangements and associated security procedures and to
inspect all BT Items being held by or on behalf of the Supplier, and the Supplier shall use such
additional reasonable security measures as BT shall from time to time require.

27.15 The Supplier shall supply on request details (name, address, date of birth) of any Contract
Personnel who might have access to a Site.

27.16 BT may examine any Information relating to the handling, processing, transportation and
storage of information or property of or supplied by BT and held by the Supplier under the
Contract, which Information shall be kept by the Supplier for at least one year after the
termination or expiry of the Contract.

27.17 BT shall not be responsible for safeguarding any property or money of Contract Personnel.

28 RISK ASSESSMENT

28.1 The Supplier shall provide a Risk Register for each Work Package/ project, which will form
part of any subsequent contractual commitment.

28.2 The register shall as a minimum identify the risk, likely impact, probability evaluation and
mitigation actions that will be taken to reduce the risk.

28.3 The register shall also identify any specific Supplier responsibility exclusions, which will
vary dependent on the type of service provided.

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IN CONFIDENCE

29 BT SECURITY POLICY REQUIREMENTS

29.1 The Supplier shall comply with the requirements of BT’s security requirements, as defined in
BT Security Policy in Schedule 4 herein.

29.2 The Supplier shall not have or be permitted access to interconnection with BT Systems and
access to BT Information (“Access”) other than for the Purposes (as defined in Schedule 4) in
accordance with the Contract.

29.3 BT allows (so far as it can and is able to do so) the Supplier, while the Supplier is
Authorised (as defined in Schedule 4) Access solely for the Purposes as defined in Schedule 4.

29.4 The Supplier shall take all reasonable steps to prevent unauthorised Access.

29.5 The Supplier shall provide BT with a generic risk management statement (in terms of risk
management strategy and contingency plans) in connection with any services provided remotely from
BT site, either in the UK or Offshore, to ensure continuity of service in the event of natural
disaster, terrorist attack, war or similar.

29.6 In the event of conflict between this Condition and Schedule 4 in this Contract, the terms of
Schedule 4 shall prevail.

29.7 This Condition shall survive the Contract.

30 PROTECTION OF PERSONAL DATA

30.1 Other than at BT’s request, where required to provide the Services, or where required by law
the Supplier shall not disclose or allow access to any personal data as defined in the Data
Protection Act 1998 (the “Data Protection Act”) relating to the Services (“BT Personal Data”)
whether provided or acquired by the Supplier during the course of the negotiations leading to or on
the execution and during the Term of this Contract, other than to a person placed by the Supplier
under a like obligation who is employed or engaged by the Supplier or within the control of the
Supplier in the performance of the Contract.

30.2 The Supplier shall store or process BT Personal Data only at sites and in a manner
specifically advised to BT in writing in advance and only in accordance with the Data Protection
Act. BT shall have the right to reasonably object to such storage or processing at any time in
which case the Supplier shall store or process data only at sites or in a manner expressly agreed
with BT.

30.3 The Supplier shall not use BT Personal Data for any purpose other than the performance of the
Services and shall return any BT Personal

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IN CONFIDENCE

Data to BT immediately upon request at any time providing such return does not prevent the Supplier
from fulfilling its obligations under this Contract. Upon expiry or termination of this Contract
for whatever reason, the Supplier shall return to BT or at BT’s option destroy (and certify that it
has destroyed) all BT Personal Data.

30.4 The Parties acknowledge that, in respect of all BT Personal Data controlled by BT and
processed by the Supplier for the purpose of the provision of Services under this Contract BT alone
shall determine the purposes for which and the manner in which such BT Personal Data will be
processed (as defined in the Data Protection Act) by the Supplier.

30.5 Where, in connection with this Contract, the Supplier processes BT Personal Data on behalf of
BT as a data processor, the Supplier shall:

(a) process BT Personal Data only on instructions of BT
and to the extent necessary for the performance of this Contract;

(b) not disclose BT Personal
Data to any person except as required or permitted by this Contract or with BT’s written consent;
and

(c) implement appropriate technical and organisational measures to protect those personal data
against accidental or unlawful destruction or accidental loss, alteration, unauthorised disclosure
or access, and against all other unlawful forms of processing.

(d) Subject to the indemnification processes and terms set forth in
Section 33.11, 33.12 and 46.1 hereto, the Supplier shall at its own expense defend, indemnify and
hold harmless BT against all third party actions, claims, demands and proceedings and all damages,
costs and expenses incurred in connection therewith made or brought against BT by any person in
respect of any loss or damages to that person relating to the misuse of the personal data of that
person by the Supplier, its officers, contractors, sub-contractors, agents, servants, or employees
or other person within its control.

30.6 The Supplier shall, with regard to personal data:

(a) comply and ensure that all its employees, agents and sub-contractors comply with all relevant
provisions of any BT codes of practice (mutatis mutandis) notified to the Supplier from time to
time, the Computer Misuse Act 1990 and the Data Protection Act; and

(b) keep and ensure all its employees, agents and Sub-Contractors keep all Information secure and
confidential, act only on BT’s instructions with respect to it, and comply with such further

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IN CONFIDENCE

reasonable requirements from time to time of BT for the security of it; and

(c) prior to any transfer of personal data, enter into or procure that the Sub-contractor
delivering the Services will enter into contracts for the transfer of personal data, which in
respect of the European Economic Area (the “EEA”) shall be on the basis of the Model Contract Terms
as issued by the European Commission pursuant to the Data Protection Directives or such other data
protection model contract terms
as may be agreed between the Parties from time to time and in respect of countries outside the EEA
on terms consistent with the legal requirements of such countries.

30.7 Where, in connection with this Contract, the Supplier processes BT Personal Data on behalf of
BT as a data processor, the Supplier shall without delay execute Model Clauses in Schedule 3 for
each and every Work Package and/or Purchase Order.

30.8 Other than as provided in this Clause 30, the Supplier agrees not to export any personal data
outside the EEA without BT’s prior written consent.

31 TRANSFER OF UNDERTAKINGS

31.1 Within 7 days following a written request by BT at any time, the Supplier shall, at its own
expense, provide in writing to BT or to such third parties as BT may direct, all Information
concerning:

(a) any actual, threatened or potential litigation by or in relation to its employees;

(b) its employees’ terms and conditions of employment; and

(c) such other Information as BT considers necessary to ensure compliance with the Transfer of
Undertakings (Protection of Employment) Regulations or any similar or related legislation (“TUPE”)
following the termination or expiry of the Contract in relation to the provision of services the
same as or similar to services comprised in the Services (“Similar Services”).

31.2 The Supplier warrants that all Information supplied under Paragraph 1 of this Condition is
complete and correct.

31.3 The Supplier indemnifies:

(a) BT (without prejudice to any other right
of BT); and

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IN CONFIDENCE

(b) at BT’s request, any subsequent contractor to BT providing Similar Services

against all liability arising as a result of the operation of TUPE or otherwise in relation to the
acts or omissions of the Supplier with respect to its employees during the Term, subject to the
indemnification processes and terms set forth in Section 33.11, 33.12 and 46.1.

31.4 The Supplier shall use its reasonable endeavours to ensure that the composition of its
workforce is not altered so as to affect materially the application of TUPE or the extent of such
application.

31.5 The provisions of this Condition shall survive the expiry or termination of the Contract, and
their existence, or BT’s exercise of any rights under them, shall not constitute or imply any
admission by BT that TUPE is applicable or not.

32 TAX AND NATIONAL INSURANCE

The Supplier shall make
all appropriate PAYE deductions for tax and National Insurance
contributions from the remuneration it pays its personnel (none of whom shall be employees of BT)
and the Supplier indemnifies BT in respect of any claims that may be made by the relevant
authorities against BT in respect of tax demands or National Insurance or similar contributions
relating to the Supplier’s personnel or, where the Supplier is a partnership, relating to any
partner in the Supplier.

33 INTELLECTUAL PROPERTY

33.1 In this Condition, “New Information” means all Information generated in the course of or
arising from the performance of the Contract.

33.2 BT shall exclusively own the New Information and all Intellectual Property Rights in it.
Whenever the Supplier becomes aware of any invention or design comprised in the New Information as
may reasonably be thought patentable or registrable the Supplier shall provide sufficient
information to BT’s Commercial Contact (or such other person or address as BT may notify) to enable
BT both to ascertain its technical and commercial significance, and, if required by BT, to apply
for Intellectual Property Right protection.

33.3 The Supplier assigns to BT the copyright, design right and any other Intellectual Property
Right in the New Information which shall vest in BT absolutely as and when such copyright, design
right or other right comes into existence. All documentation or other items or media consisting of
or containing New Information shall belong to BT. The Supplier shall mark each item of the New
Information accordingly.

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IN CONFIDENCE

33.4 The Supplier shall, at the request and expense of BT, to do or ensure that is done, everything
that BT may reasonably require to apply for and to obtain Intellectual Property Rights in any New
Information and to vest in BT absolutely any such Intellectual Property Rights, or any application.

33.5 The Supplier shall use reasonable care to ensure that nothing is done to prejudice the grant
or creation of any Intellectual Property Right in respect of any of the New Information or to
prejudice the exercise of any such Intellectual Property Rights.

33.6 The Supplier warrants that it has the right and power to grant to BT the rights and licences
granted under the Contract.

33.7 The Supplier grants a non-exclusive irrevocable licence to BT whether by itself or by third
parties on its behalf, free of any payment, to copy, disclose, publish, sell and use (with the
right to sublicense any such rights) the Services without restriction. If the exercise of these
rights and/or BT’s rights in the New Information requires licences to use the Supplier’s Background
Information or the Intellectual Property Rights of any third party, then the Supplier shall be
deemed to hereby grant or shall procure such licences for BT at no cost to BT.

33.8 Where BT has instructed the Supplier to procure third party components including software for
BT use in the performance of the Services, which is sub-licensed to BT, the Supplier shall grant BT
in the sub-
licence similar warranties and indemnities as provided in the third party contract between the
Supplier and third party until such time BT ceases use of the third party component.

For the purposes of this sub-paragraph,

“THIRD PARTY SOFTWARE” will mean any Software that is owned by a person other than Supplier or BT
and is used to provide the Services.

“THIRD PARTY SOFTWARE LICENCE” will mean a license agreement that authorises BT or Supplier to use
Third Party Software.

The Parties will identify in each Work Package or Purchase Order such additional Third Party
Software as may be required for Supplier to perform a particular Work. Supplier shall perform the
following actions in order to ensure Supplier has the necessary right to use Third Party Software
in order to perform Services for BT under this Agreement (“Third Party Consents”) in the following
order of precedence:

33.8.1 Solely for Services to be performed within the BT or on other premises, Supplier shall (i)
work with BT to obtain the necessary Third Party

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IN CONFIDENCE

Consents; and (ii) execute any additional agreements or assurances with such third party which may
be necessary to secure such Third Party Consents. BT’s failure to obtain any such Third Party
Consents shall not be a breach of this Agreement; provided however, Supplier shall have no
obligation to perform the Services dependent on such Third Party Software.

33.8.2 For Third Party Software as to which Supplier has an existing license for its own use,
Supplier shall use all reasonable efforts to secure all necessary Third Party Consents including
without limitation the right to use the Third Party Software for the benefit of BT.

33.8.3 For Third Party Software as to which Supplier does not have an existing licence for its own
use, Supplier shall use commercially reasonable efforts to secure all necessary Third Party
Consents including without limitation the right to use the Third Party Software for the benefit of
BT. The parties may execute a Work Package or a Variation to effect the foregoing. Alternatively,
Supplier and BT may agree that BT procure such Third Party License Agreement.

33.8.4 For Third Party Software as to which BT has an existing Third Party License for its own use
and as to which Supplier does not already have a licence of its own permitting Supplier to use the
Third Party Software to provide the Services or is unable to obtain under subsection (2) above,
Supplier shall (i) work with BT to obtain the necessary Third Party Consents; and (ii) execute any
additional agreements or assurances with such third party which may be necessary to secure such
Third Party Consents. BT’s failure to obtain any such Third Party Consents shall not be a breach of
this Contract; provided however, Supplier shall have no obligation to perform the Services
dependent on such Third Party Software.

33.9 Supplier may not enter into oral or written agreements with any individual or business entity
for or in the name of BT or BT Nominee or Affiliated Companies of BT. Supplier shall not cancel,
substitute, terminate, change or add to any such Third Party Software Licence without BT’s prior
written consent, which consent may be withheld in BT’s sole discretion.

33.10 The Supplier indemnifies BT against all actions, claims, proceedings, damages, costs, and
expenses arising from any actual or alleged infringement of Intellectual Property Rights (excluding
Third Party Software used as part of any Work which was pre-approved by BT and for which Supplier
has not entered into a Third Party Software License) or breach of confidentiality by BT’s
possession or use or sale, lease or hire of any of the Services anywhere in the world.
Notwithstanding anything to the contrary, Supplier will indemnify and pay to BT with

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IN CONFIDENCE

respect to such third party claims under this Section and under this Agreement regarding
indemnification obligations of Supplier, all such damages, costs and expenses finally awarded
against BT to such third party by a court of competent jurisdiction after all appeals have been
exhausted or at the time of a final settlement of such claims or final award or out of court
settlement, if applicable.

33.11 BT shall notify the Supplier in writing of any such allegation received by BT and shall not
make any admissions unless the Supplier gives prior written consent.

33.12 At the Supplier’s request and expense, BT shall permit the Supplier to conduct and control
all negotiations and litigation. BT shall give all reasonable assistance and the Supplier shall pay
BT’s costs and expenses so incurred.

33.13 The Supplier may at its expense modify or replace the Services to avoid any alleged or actual
infringement or breach. The modification or replacement must not affect the performance of the
Services. If neither of these remedies are reasonably available to the Supplier, the Supplier may
require BT to cease using the infringing Work and the Supplier will issue BT a pro-rated refund
based on a Contract Term year depreciation schedule for the infringing Work (as appropriate). Where
BT is required to return the Services to the Supplier and such return requires goods to cross an
international border, the rejected Services shall be returned to the Supplier on a CIP basis and
the Supplier shall reimburse to BT the reasonable costs of transportation, delivery, importation
and any necessary international trade formalities with which BT must comply. The Supplier may at
its option, collect rejected Services. Replacement Services shall be delivered on a FCA basis and
the Supplier shall reimburse to BT the reasonable costs of transportation, delivery, importation
and any necessary international trade formalities with which BT must comply.

33.14 This indemnity shall not apply to apply to infringements or breaches arising directly from:

(a) compliance with the Design Information to the extent that such compliance directly or
indirectly results in the infringement. This exception does not apply to infringements resulting
from a BT requirement that the Services comply with a national or international standard; or

(b) the combination of the Services with other items not supplied under the Contract.

(c) any alteration or modification of any Services not provided or authorised by Supplier in
writing, if the infringement would not have

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IN CONFIDENCE

occurred but for the alteration or modification by a party other than Supplier

(d) any claim covered by paragraph 33.15 below or any intellectual property of BT, to the extent
that such intellectual property caused such infringement.

33.15 Without prejudice to sub-paragraph 12(a) of this Condition, BT warrants that compliance with
the Design Information will not cause infringement or breach.

33.16 This Condition shall survive the Contract.

34. ESCALATION

In the event that a material dispute relating to the Contract arises, the parties, shall escalate
the dispute to the persons named or holding the positions (or their equivalents) at the Levels
stated below and for the time periods stated below. If, despite each Level’s good faith discussions
and negotiations for the time period stated below, such Level is still unable to resolve the
dispute within the period stated below for such Level to the mutual satisfaction of the parties,
the parties shall escalate the dispute to the next Level for the periods stated below, and so on
until the procedure is exhausted. If the dispute is not resolved within the periods stated below
(and any applicable agreed cure period), then the parties may pursue all other remedies provided at
law or under this Contract. During the time of escalation per the process set forth below, neither
party shall resort to litigation unless the other party is unwilling or unable to engage in the
escalation process.

	 	 	 	 	 	 	 
	 	 	For BT 	 	For the Supplier	 	Time of Negotiation/Level
	Level 1
	 	Commercial Contact
	 	Client Services Manager
	 	5 business days
	 
	 	 	 	 	 	 
	Level 2
	 	Head of domain
	 	Vice President
	 	5 business days
	 

	 	 	 	Client Services	 	 
	 
	 	 	 	 	 	 
	Level 3
	 	VP Global Sourcing of Centre of
	 	General Manager
	 	5 business days
	 

	 	Excellence	 	 	 	 
	 
	Level 4
	 	Chief Procurement Officer
	 	Chief Operating Officer
	 	5 business days
	 
	 	 	 	 	 	 
	Level 5

	 	Group CFO
	 	Chief Executive Officer
	 	10 business days

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IN CONFIDENCE

35 WARRANTY

35.1 The Supplier shall at its own cost promptly remedy (by, at BT’s option and by mutual
agreement, repair, replacement or modify) any non-conformance of the Services from the Specification
during the Warranty Period solely due to the fault of the Supplier as notified by BT in writing
during the 180 day period (“the Warranty Period”) of their respective delivery to BT due to:

(a) poor or defective workmanship or materials;

(b) faulty design which deviates from the Specification, (other than a design made or furnished or
specified by BT and for which the Supplier has previously disclaimed responsibility in writing
within a reasonable time of receipt); or

(c) any negligent act or negligent omission by the Supplier or Contract Personnel.

If BT notifies Supplier in writing of any such non-conformance during the Warranty Period,
Supplier’s sole and exclusive obligation, and BT’s sole and exclusive remedy shall be for Supplier
to promptly repair, replace or modify such non-conformance at no additional expense to BT to comply
with the warranty stated above, without prejudice to BT’s rights under the heading “Termination”.

35.2 Subject to the warranty terms above, the Supplier shall use all reasonable care to:

(a) ensure that any remedied part of Services is compatible with all Services; and

(b) complete the remedy to comply with the warranty above within the time-scales specified in the
Contract (or, if none are specified, within a reasonable time); and

(c) ensure that defective Services are not remedied on BT premises without BT’s consent, unless,
for operational or technical reasons they can only be removed or replaced with difficulty; and

(d) cause the minimum of disruption to BT and/or its customers in effecting any remedy. The time at
which any remedy is to be effected shall be agreed with BT and BT may at its discretion direct the
Supplier to work outside normal working hours at no cost to BT.

35.3 All repaired or replacement Services shall benefit from the provisions of this Condition and a
new Warranty Period shall apply to them from their respective date of delivery to BT.

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35.4 The Supplier shall, upon receipt of Services returned under this Condition, immediately
investigate those Services and take all necessary corrective action to prevent recurrence of the
defects in Services. The Supplier shall report monthly in writing to BT’s Commercial Contact the
outcome of all such investigations. The report shall contain such additional information and be in
such format as BT shall reasonably require from time to time including but not limited to:

a) a summary of the Services rejected by BT under this Condition, along with the results of the
investigation.

b) the details of any corrective action taken to prevent a recurrence of defects.

c) without prejudice to the rights of BT under this Condition, the reasons for any Services
returned not being accepted under the terms of this guarantee and a breakdown of those Services by
the code number quoted on any applicable fault label supplied.

35.5 Subject to Clause 33, the Supplier warrants that it has the right to supply the Software and
grant licences for the Software as described in this Contract and will indemnify and hold harmless
BT against any claim that it is not so entitled.

35.6 The Supplier warrants that the Software will after acceptance by BT and during the Warranty
Period provide the facilities and functions set out in their Functional Specifications, and that
the documentation provided by the Supplier for the Software will provide instruction to enable BT
to make full and proper use of such facilities and functions.

35.7 In the event of a
breach of warranty during the Warranty Period solely due to the fault of
the Supplier, the Supplier shall correct or replace free of charge to BT, for the applicable
Warranty Period commencing from Acceptance of the installation of the
Software, any non-conformance
of the Software for the Functional Specification in the Statement of Requirements or any part
thereof. Where an error in Services in accordance with 35.1 or Software is discovered to be a
consequence of

(a) an amendment or customisation made to the Software or Service by or on behalf of BT without the
Supplier’s prior consent;

(b) the combination, operation, or use of the Software with any other software or materials not
approved by Supplier or use of the Software on incompatible hardware or software environment not
recommended by Supplier;

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

(c) operation or use of the Software otherwise than for the purposes or in accordance with this
Contract and documentation provided by the Supplier,

(d) BT’s hardware malfunction,

(e) third party software;

then the Supplier may levy a reasonable charge for its time expended correcting the said error.

35.8 The Supplier shall use good quality materials, techniques and standards and execute this
Contract with the care, skill and diligence required in accordance with the best computing practice
and industry standards.

35.9 The Supplier hereby represents, warrants and covenants that the Software, when delivered to
BT, does not and will not contain any computer code that would disable the Software or impair in
any way its operation based on the elapsing of a period of time, exceeding an authorised number of
copies, advancement to a particular date or other numeral, or other similar self-destruct
mechanisms (sometimes referred to as “time bombs”, “time locks”, or “drop dead” devices) or that
would permit the Supplier to access the Software to cause such disablement or impairment (sometimes
referred to as a “trap door” device).

35.10 The Supplier agrees that in the event of a breach or alleged breach of
Section 35.9 that BT shall not have an adequate remedy at law, including monetary damages, and that
BT shall consequently be entitled to seek a temporary restraining order, injunction, or other form
of equitable relief against the continuance of such breach, in addition to any and all remedies to
which BT shall be entitled.

35.11 This Condition shall survive the Contract.

36 TITLE AND RISK

36.1 Without prejudice to BT’s right to reject under the Contract, the title in Services shall pass
to BT upon the earlier of Acceptance or payment (and for any part of a Service, including any
payment thereon) and shall be free from any claims or encumbrance whatsoever, with the exception of
Software for which a licence is granted in accordance with the Contract.

36.2 If any Services are rejected by BT or the Contract is terminated, title to any Services not
accepted by BT and any materials or things which have not been incorporated in any part of accepted
Services, shall re-vest in the Supplier on the expiration of 30 days from the date on which

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IN CONFIDENCE

such termination or rejection takes effect unless BT gives notice to the Supplier within such
period that it intends to either issue any certificate of commercial service in respect of the
rejected Services or otherwise retain title in them.

36.3 Any payment made by BT for Services, materials or things which re-vest in the Supplier is a
sum due to BT from the Supplier.

36.4 The Supplier shall deliver to BT any Services the title in which BT has elected to retain
provided that BT pays for the fees and expenses incurred up the time of delivery of the Services
under this Condition and if it shall fail to do so BT may enter the Supplier’s premises and remove
such Services and recover the cost of so doing from the Supplier, subject to BT paying a fair and
reasonable price for such Services.

36.5 The risk of loss of or damage to Services shall pass to BT upon Acceptance, which Acceptance
shall be defined in each Project.

37 RIGHT TO REJECT

37.1 BT shall have the right to reject the whole or any part of the Services prior to Acceptance
that it reasonably considers are not in accordance with the Specification in the Statement of
Requirements.

37.2 The Supplier shall at its own risk and expense, then use all reasonable endeavours to replace
or repair rejected Services with Services that comply with the Statement of Requirements within 14
days (or any other reasonable period specified by BT) of notice of rejection from BT.

37.3 Written acknowledgement of receipt of Services by BT at the delivery point shall not affect
BT’s rights subsequently to reject those Services. In the event a defect is identified in the Services delivered and prior to Acceptance,
the Supplier shall at its own risk and expense, use all reasonable endeavours to replace or repair
rejected Services with Services that comply with the Statement of Requirements within 14 days (or
any other reasonable period agreed with the parties) of notice from BT of the deficiency.

38 EXPORT

The Supplier:

(a) warrants that it has obtained all necessary licences, authorities, consents and permits for the
unrestricted export of Services to BT, and export or re-export to such countries as BT shall have
notified to the Supplier at any time before delivery to BT; and

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IN CONFIDENCE

(b) indemnifies BT against all costs, claims, or demands resulting directly or indirectly from any
breach of such warranty, subject to the provisions of Section 33.11, 33.12and 46.1.

39 DOCUMENTATION

In this Condition, “Documentation” means the installation, user and maintenance guides and/or other
documentation supplied under the Contract relating to the use and/or operation of Services.

39.1 The Supplier grants to BT non-exclusive, royalty free, world-wide rights, by or on behalf of
BT to copy and disclose, make adaptations of (and copy and disclose such adaptations) of the
Documentation for its and, where not otherwise expressly restricted, third parties’ use of
Services.

40. DELIVERY

40.1 The Supplier shall deliver Services in accordance with the Contract for time of delivery. If
no such time is specified in the Contract, the Supplier shall deliver Services as agreed between
the parties or, in the
absence of agreement, at such time as BT may specify but not limited to in the Work Package or
Purchase Order (as the case may be).

40.2 The Supplier shall deliver Services ordered by BT in accordance with the Requirements schedule
to the Contract.

40.3 The Supplier shall not, without the prior written consent of BT, deliver any part order (by
quantity or by item). If Services are not available for delivery at the due time, the Supplier
shall (without prejudice to BT’s rights under the Contract) immediately inform BT by telephone,
facsimile or e-mail and confirm such communication in writing.

41 DEFAULT/LIQUIDATED DAMAGES

41.1 Subject to the provisions of the Condition headed “Force Majeure”, and, if the Supplier does
not deliver, install, or complete (as the case may be) any Services by the due date subject to any
Variation and terms of any Work Package and/or Purchase Order, the Supplier shall be in breach of
the Contract (but not necessarily material breach), and, where the relevant Work Package or this
Contract provides for the payment of liquidated damages, shall pay to BT on request such an amount
of liquidated damages as described in the relevant Work Package.

41.2 Payment of, or BT’s right to liquidated damages under this Condition shall not affect any of
BT’s rights under the Condition headed “Termination”.

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IN CONFIDENCE

41.3 Without prejudice to any other obligation of the Supplier, in respect of each activity
specified in Schedules, 6 and, the Supplier shall perform the Work Package in accordance with the
corresponding contract performance requirement.

42 TOOLING

42.1 For the purposes of this Condition, “Tooling” means any equipment and/or software developed,
produced or used at any time in relation to the production of Services and owned or paid for or to
be paid for or supplied by BT.

42.2 All Tooling shall be BT Items and shall remain the property of BT. Where Tooling is not
already owned by BT, it shall become the property of BT from the date of the first payment by BT
for it.

42.3 BT shall have the right, at any reasonable time on reasonable written notice to the Supplier,
to inspect, or to take possession of, any or all Tooling.

42.4 The Supplier shall at all times maintain the Tooling in good condition and fit for its
intended purpose and shall, within 7 days of receipt of written notice from BT, procure or modify
any Tooling in accordance with BT’s reasonable instructions.

42.5 The Supplier shall, within 7 days of the expiry or termination (for whatever reason) of the
Contract or within 7 days of receipt of a written request from BT, physically transfer the Tooling
to BT or such third party as BT may notify to the Supplier in writing.

42.6 The Supplier shall regularly update and provide to BT a Tooling inventory, (including without
limitation, details of description, quantity, location, rate of production, and the expected life
of the Tooling) taking into account modifications to it from time to time.

42.7 The Supplier shall be solely responsible for the actions stated in paragraphs 4 to 6 of this
Condition, including in situations where the Tooling is in the possession of a Subcontractor or
other agent or nominee of the Supplier.

42.8 This Condition shall survive the Contract.

43 TERMINATION

43.1 If either party to the Contract commits a material breach or persistent material breaches of
the Contract or Supplier or its group companies commits any material breach of any other agreement
with any BT Group Company from time to time, the non-breaching party shall serve written notice on
the breaching party (i) requiring such breach to be

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IN CONFIDENCE

remedied within thirty (30) business days, and (ii) the commencing the escalation process procedure
in clause 34 (such cure period and escalation period to run concurrently). If the breaching party
fails to remedy the material breach within thirty (30) business days of written notice from the
non-breaching party, then the other party shall have the right to:

(a) terminate the Contract; and

(b) make a claim against the breaching party for all direct damages resulting from such breach,
subject to, and in accordance with the terms herein.

43.2 BT shall have the right at any time to terminate the Contract immediately and to make a claim
against Supplier for, all direct damages resulting if the Supplier shall become insolvent or cease
to trade or compound with its creditors; or a bankruptcy petition or order is presented or made
against the Supplier; or where the Supplier is a partnership, against any one partner, or if a
trustee in sequestration is appointed in respect of the assets of the Supplier or (where
applicable) any one partner; or a receiver or an administrative receiver is appointed in respect of
any of the Supplier’s assets; or a petition for an administration order is presented or such an
order is made in relation to the Supplier; or a resolution or petition or order to wind up the
Supplier is passed or presented or made or a liquidator is appointed in respect of the Supplier
(otherwise than for reconstruction or amalgamation).

43.3 [***]

“Change of Control” means any of the following transactions which result in a third party acquiring
Control (as defined below) of the Supplier or its direct or indirect holding company (or its or
their business or assets): (A) a merger, consolidation, business combination, recapitalization,
liquidation, dissolution or similar transaction involving the Supplier (or its direct or indirect
holding company); (B) the acquisition by any person or group (including by way of a tender or
exchange offer or issuance by the Supplier ) (or its direct or indirect holding company), directly
or indirectly, of beneficial ownership or a right to acquire beneficial ownership of shares in the
Supplier (or its direct or indirect holding company) or (C) a sale or other disposition by the
Supplier (or its direct or indirect holding company) of assets or earning power aggregating a
majority of the assets or earning power of the Supplier (or its direct or indirect holding
company), excluding all sales of equity pursuant to an initial public or subsequent public offering
by Supplier (or its direct or indirect holding company) or (D) or any agreement to do any of the
foregoing.

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

“Control” shall mean the legal or beneficial ownership of more than 50% of the voting or equity
interests or assets of the Supplier (or its direct or indirect holding company); or the power or
right to direct or cause the direction of the management and/or affairs of the Supplier (or its
direct or indirect holding company) or its or their business (including acting as the general
partner of a limited partnership).

43.4 Except as otherwise expressly provided in individual Work Packages and Purchase Orders, [***],
BT may terminate Work carried out under an individual Purchase Order and/or Work Package.
Termination of Work carried out under individual Purchase Orders and/or Work Package shall not
affect the status of Work carried out or to be carried out under other Purchase Orders and/or Work
Package issued under the Contract. For the avoidance of doubt, any termination by BT under this
Clause shall not affect BT’s obligations under Clause 55 and Schedule 6.

43.5 Where BT terminates the Contract under paragraph 43.4 and does not have any other right to
terminate the Contract, in addition to Supplier’s rights and BT’s obligations under Clause 55 and
Schedule 6, the following shall apply:

(a) BT shall subject to subparagraph (b) below, pay the Supplier such for Services performed to the
date of termination and pay such amounts as may be necessary to cover its reasonable costs and
outstanding and unavoidable commitments (and reasonable profit thereon) necessarily and solely
incurred in properly performing the Contract in relation to Applicable Services (as defined below)
prior to termination.

(b) BT shall not pay for any such costs or commitments that the Supplier is able to mitigate and
shall only pay costs and commitments that BT has validated to its satisfaction. BT shall not be
liable to pay for any Applicable Services that, at the date of termination, BT is entitled to
reject (including any Services for which BT may have put into service) or has already rejected.
BT’s total liability under sub-paragraph (a) above shall not in any circumstances exceed the price
that would have been payable by BT for Applicable Services if the Contract had not been terminated.

(c) In this paragraph 4, “Applicable Services” means Services in respect of which the Contract has
been terminated under this paragraph, which were ordered by BT under the Contract before the date
of termination, and for which payment has not at that date become due from BT.

(d) Except as expressly set forth in Clauses 43.4 and 43.5,
sub-paragraphs (a) and (b) above encompass the total liability of
BT for

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IN CONFIDENCE

termination pursuant to this paragraph 4, and BT shall be liable for no other costs, claims,
damages, or expenses resulting from such termination.

43.6 Notwithstanding anything contained above, in the event of termination of this Contract for any
reason whatsoever, BT shall be liable to pay the Supplier all undisputed invoices for the Services
rendered up to the date of such termination.

43.7 Each right of BT under this Condition is without prejudice to any other right of BT under this
Condition or otherwise.

44 TRANSITION

Where the Supplier undertakes Work which requires transition:

44.1 The Supplier shall complete transition of the Work (as detailed in the relevant Statement of
Requirements) within three (3) months (“the Transition Period”) of commencement of the Work.

44.2 The start date for the transition work shall be identified as Effective Date which date shall
be mutually agreed in Statement of Requirements.

44.3 The Supplier shall initiate transition for critical work areas identified by BT, ahead of the
transition start date, by making a transition team available by a date to be mutually agreed by
both Parties and confirmed in Statement of Requirements.

44.4 Project Plan

If it is not feasible to migrate all the Work identified in the relevant Statement of Requirements
simultaneously the Supplier should propose a project plan to indicate when the Work is to be
migrated. The plan should be structured to maximise the cost and efficiency benefits that can be
achieved.

44.5 Transition Plan:

44.5.1 A transition plan shall be agreed between BT and the Supplier, which shall include such
details as Activities, Elapsed Timescales, Milestones, Dependencies and Acceptance criteria for
successful completion of the transition work.

44.5.2 BT and the Supplier shall hold regular joint management reviews of the transition process.
The transition plan shall be used to monitor the progress of the transition Work.

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

44.6 REMEDIES:

44.6.1 In the event of the transition work not being completed within the Transition Period solely
to a default by the Supplier, BT shall have the following options:

(a) Either, agree an extension of the transition period by up to a maximum of 2 months, for which
the Supplier shall provide additional resource required to complete transition at no extra costs to
BT.

(b) Upon 30 business days written notice and failure to cure by Supplier, BT may terminate the
Contract.

The remedies listed above may apply, subject always to a maximum total amount of the costs incurred
by BT as a result of this default. BT wishes to retain the right to terminate however the total
remedy amount described above will be the Supplier’s sole financial liability and BT’s sole
financial remedy for failure to achieve completion of transition within the Transition Period.

44.6.2 In the event of the transition work not being completed within the Transition Period as a
result of a delay caused by a BT dependency, BT shall ensure that any reasonable extra costs
incurred by the Supplier are reimbursed to a maximum total amount of the extra costs incurred by
the Supplier.

44.7 Timescales

The agreement shall be in two
parts:

(a) Transition, and

(b) Ongoing Work

Commencement of Ongoing Work shall be dependent on the Supplier demonstrating that they meet the
transition Acceptance criteria as set forth in the Work Package.

44.8 Transition Escalation

In the event of a breakdown or failure in transition that does or could reasonably be expected to
result in a remedy claim for failure on the part of either BT, the Supplier or both the escalation
process will be as follows:

BT: BT Transition Manager

The Supplier: Program Manager

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IN CONFIDENCE

It will be the responsibility of these managers to consider the instance of failure, agree an
appropriate course of action to correct the failure, assess any financial impact on the
disadvantaged party and agree a suitable remedy. In the event that this cannot be agreed, it will
be referred to respective Executive Sponsors for final resolution.

45 EXIT STRATEGY COOPERATION

45.1 If the Contract is terminated by BT, or not renewed with the Supplier beyond the Initial Term,
and if required by BT, the Supplier shall co-operate fully with BT and with any third party
nominated by BT, at no additional cost to BT, except for undisputed invoices, in facilitating the
provision of replacement work (“Replacement Work”). Such co-operation shall include, without
limitation:

(a) the supply by the Supplier of such Supplier’s Background Information as is reasonably necessary
to enable Replacement Work to be provided in a similar manner to that in which Services had or
should have been provided by the Supplier; and

(b) the granting by the Supplier to BT or, at BT’s option, a third party, of a licence to use such
Supplier’s Background Information solely in relation to the provision of Replacement Work for a
period expiring five years after the date of termination (or part termination) of the Contract; and

(c) the undertaking by the Supplier of reasonable endeavours to procure for BT or BT’s nominated
contractor the grant or transfer of all licences and permissions under third party Intellectual
Property Rights which may from time to time be reasonably necessary for the provision of
Replacement Work to the extent that such third party Intellectual Property Rights have been used in
the provision of Services by the Supplier.

For the avoidance of doubt, the Replacement Work shall include for Work under a Work Package and/or
Purchase Order, which had ceased or lapsed over a period of time.

For the purpose of this clause (Transition Co-operation) “Supplier’s Background Information” shall
mean all Information owned or controlled by the Supplier or companies in the same group (as defined
by s.53 Companies Act 1989) as the Supplier.

45.2 To ensure a smooth transition at the end of the Contract, BT requires the Supplier to maintain
Documentation relating to the processes and procedures used in the execution of the Contract for
the Work for the lifetime of the Contract.

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IN CONFIDENCE

45.3 Further to the above, the Supplier shall use all reasonable endeavours to maintain the Key
Personnel throughout the Replacement Work period and in the event the Supplier fails, refuses
and/or neglects to maintain the same, the Supplier shall reimburse BT any cost incurred by BT for
any delay on the part of Supplier in completing the Replacement Work.

45.4 For the avoidance of doubt, such Documentation shall be subject to the Condition titled
Intellectual Property of the Conditions of Contract schedule.

45.5 The Supplier agrees to vacate BT’s premises within a reasonable period and deliver to BT those
BT assets in the Supplier’s custody.

45.6 The provisions of sub-clause 45.1 above shall survive the termination of the Contract.

46 INDEMNITY

46.1 Without prejudice to any other rights or remedies available to BT, the Supplier shall
indemnify BT against all third party claims and proceedings, damages, costs and expenses arising or
incurred proximately caused by the:

(a) death or personal injury of any Contract Personnel in relation to the performance of the
Contract, except to the extent caused by BT’s negligence; or

(b) death or personal injury of any other person to the extent arising as a result of the
negligence or wilful acts or omissions of the Supplier or Contract Personnel in relation to the
performance of the Contract; except to the extent caused by BT’s negligence ; or

(c) loss of or damage to any BT property to the extent arising as a result of the negligence or
wilful acts or omissions of the Supplier or Contract Personnel in relation to the performance of
the Contract; or

(d) any complaint made pursuant to the Employment Rights Act 1996 (as amended, replaced,
consolidated or re-enacted from time to time) by any Contract Personnel whether in the Employment
Tribunal or civil courts or otherwise, or, without limitation, as a result of any claim or demand
by any Contract Personnel in respect of any other claim whatsoever within the jurisdiction of an
Employment Tribunal or wrongful dismissal, breach of contract or any other claim arising at common
law, sex, race or disability discrimination or equal pay (in all cases, whether arising under UK or
European law); or

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IN CONFIDENCE

(e) under Part 1 of the Consumer Protection Act 1987 (or any equivalent product liability
legislation) in relation to Services;

provided that Supplier shall pay all such damages, costs and expenses arising from such claim as
finally awarded against BT to such third party by a court of competent jurisdiction after all
appeals have been exhausted or at the time of a final settlement of such claims or final award or
out of court settlement, if applicable, subject to the terms set forth in Paragraph 33.11 and
33.12.

46.2 This Condition shall survive the Contract.

47 LIMITATION OF LIABILITY

47.1 Subject to Paragraph 3 of this Condition, neither party shall be liable to the other under the
Contract for any indirect or consequential loss or damage.

47.2 Subject to Paragraph 3 of this Condition the total liability of either party to the other
under the Contract shall not exceed the greater of either:

(a) [***]

(b) [***] of the total of all sums paid or due to the Supplier for Services performed in the
previous 12 months from the date of the claim.

47.3 Paragraphs 1 and 2 of this Condition shall not
apply to loss or damage arising out of or in connection with:

(a) death or personal injury or loss
or damage for which liability cannot be limited or excluded by law; or

(b) the wilful failure or
gross negligence of either party in performing its contractual obligations; or

(c) paragraph
46.1(d) of the Condition headed “Indemnity”; or

(d) the Conditions headed “Liquidated Damages”,
“Intellectual Property”, or “Confidentiality”.

47.4 This Condition shall survive the Contract.

48 INSURANCE

48.1 The Supplier shall at its own expense maintain for the Term such insurance as is legally
required and appropriate in respect of its obligations, including, without limitation, third party
liability insurance with an indemnity limit of not less than [***] for each and every claim and in
the annual aggregate to the extent that if any claim (a settled

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IN CONFIDENCE

claim in excess of [***] made by a third party against the Supplier materially erodes the third
party liability insurance, the Supplier shall promptly notify BT of such claim and, if the Services
include specialist or professional services, professional indemnity insurance with an indemnity
limit of not less than [***] for each and every claim and in the annual aggregate.

48.2 If the Supplier cannot evidence such insurance to BT on request, BT may arrange such insurance
and recover the cost from the Supplier.

48.3 The Supplier shall notify BT’s Commercial Contact as soon as it is aware of any event which
may give rise to an obligation to indemnify BT under the Contract, or to a claim under any
insurance required by the Contract.

48.4 This Condition shall not limit the Supplier’s liability under the Contract.

49 PUBLICITY

49.1 The parties agree that their respective marketing and public relations representatives will
work together in good faith to create jointly approved releases. Subject to obtaining BT’s written
consent (not to be unreasonably withheld or delayed)Supplier may name BT in a press release as a
client and as a client in marketing materials, display BT’s logo or logos on Supplier’s website,
and use a client brief describing the Services provided to BT by Supplier.

50 SOFTWARE

The Supplier warrants that:

(a) all Software is free from all forms of:

(i) “electronic possession”, “logic bombs” “viruses” and “worms” that could have been detected by
using the latest (at the date of despatch) commercially available virus detection software; and

(ii) “spyware” and “adware”

(which expressions shall have meanings as they are generally understood within the computing
industry);

(b) after Acceptance by BT, subject to the terms of Section 35, the Software will perform in all
respects in accordance with the Functional Specification for the Warranty Period; and

(c) it has and shall employ only good quality materials, techniques and standards in performing the
Contract and at all times apply the

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IN CONFIDENCE

standards of care, skill and diligence required of
good computing practice.

51 SOFTWARE LICENCE

51.1 The Supplier grants to BT a non-exclusive, non-transferable, perpetual, irrevocable licence to
BT for BT by itself, or by third parties on its behalf to use, copy, install, maintain, modify,
enhance and adapt the Software in accordance with the licence type specified in the Requirements
section of the Contract, effective from the date such Software is respectively delivered to BT.

51.2 Notwithstanding any other provision of the Contract, the Supplier grants to BT non-exclusive,
royalty free, world-wide rights to any Software supplied under the Contract to the effect that BT
has:

(a) all the rights of a lawful user (as defined in the Copyright (Computer Programs) Regulations
1992) of the Software; and

(b) the rights to copy, disclose and use for any purpose any Information
which:

(i) has been derived by BT from observing, studying or testing the functioning of the
Software;

(ii) relates to the ideas and principles which underline any element of the Software; and

(iii) is not subject to the
Suppliers (or its licensor’s) copyrights in the United Kingdom; and

(c) the rights to:

(i) use Information obtained from de-compiling the Software to write independent, interoperable
programs and to supply such Information to third parties for that purpose; and

(ii) copy and adapt the Software for the purposes of error correction, repair and maintenance and,
where necessary, for the lawful use of the Software, and the right to engage a third party for
those purposes.

For the avoidance of doubt, nothing in the Contract shall prevent BT from selling or deploying
products, systems and services that are developed by BT using the Software.

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IN CONFIDENCE

52 ESCROW

The Supplier shall at BT’s request and the Supplier’s expense, enter to an IPR deposit arrangement
in respect of all Software with BT and an agent acceptable to BT. The Supplier shall ensure all
relevant Information and documentation is deposited (including, without limitation, all source code
and listings) as would be enable a competent computer programmer readily to understand and maintain
the Software. Without affecting any other rights it may have, BT shall have the right, free of all
charges, to use such source code, Information and documentation, when released, in order to use or
maintain (including to upgrade) the Software, to modify or have modified the Software, and to
license such modified Software to or have it maintained by third parties.

53 NOTICES

Written notices under the Contract may be delivered by hand, post, facsimile transmission or e-mail
to BT’s Commercial Contact or the Supplier’s Commercial Contact (as the case may be) and shall be
deemed to be given upon receipt (except notices sent by facsimile transmission, which shall be
deemed to be given upon transmission).

54 PRICING

The price(s) payable by BT for Supplies, unless otherwise expressly stated in the Contract, shall
be inclusive, where relevant, of all packing, delivery to Site, any licence fees, installation,
testing and commissioning and all other charges associated with Supplies, but shall exclude VAT.

55 PAYMENT
OBLIGATIONS; MINIMUM COMMITMENTS; INVOICING

55.1 Certain obligations of the parties relating to minimum commitments and discount structures are
set forth in Schedule 6.

55.2 BT will pay due invoices submitted in accordance with this Condition within 60 days of the
later of either the date of the invoice or the date upon which the invoice (including electronic
copy of invoices) is received by BT. All payments shall be made in pounds sterling.

55.3 When payment becomes due, the Supplier shall forward invoices to, unless otherwise specified
by BT in the Purchase Order:

BT Accounts Payable Team

PO Box 371

Parkway Business Centre
Manchester
M14 0WE

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

55.4 Each invoice shall specify: its date; the Contract number; the order reference; line
reference; the relevant BT item code(s) if appropriate; the correct price; the full description of
the Supplies to which the invoice relates (as defined in the Contract); the portion of the Supplies
for which payment is due and, if appropriate, the cumulative amount invoiced to date. The agreed
payment currency and the Incoterm must be specified in relation to any non-UK transaction. Any
discounts should be separately shown with a clear indication of what the discount is for.

56 GENERAL

56.1 The invalidity or unenforceability for any reason of any provision of the Contract shall not
prejudice or affect the validity or enforceability of its other provisions.

56.2 The headings to the Contract provisions are for reference only and shall not affect their
interpretation.

56.3 No delay, neglect or forbearance by either party in enforcing any provision of the Contract
shall be deemed to be a waiver or in any way prejudice any rights of that party.

56.4 No waiver by either party shall be effective unless made in writing or constitute a waiver of
rights in relation to any later breach of the Contract.

56.5 In relation to its subject-matter, the Contract is the entire agreement between the parties
and governs their relationship to the exclusion (to the extent permitted by law) of any other terms
and conditions, including, without limitation, those upon which any quotation or tender response
has been given to BT.

56.6 The Contract is governed by English law and subject to the exclusive jurisdiction of the
English courts.

56.7 The Supplier shall not be, nor in any way represent itself as, an agent of BT and shall have
no authority to enter into any obligation on behalf of BT or to bind BT in any way.

56.8 Any estimated contract value stated on the front sheet of the Contract is for BT
administrative purposes only and shall not constitute or imply any commitment by BT.

56.9 Except as expressly set out in the Contract no assignment of or licence under any Intellectual
Property Right or trade mark or service mark (whether registered or not) is granted by the
Contract.

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

56.10 A person who is not a party to the Contract may not enforce any of its terms under the
Contracts (Rights of Third Parties) Act 1999.

56.11 This Condition shall survive the Contract.

57. NON-ASSIGNMENT

Supplier shall not assign or transfer any, right, obligation or interest hereunder without the
prior written consent of BT, which consent shall not be unreasonably withheld or delayed; provided
also that the successor/assignee of any such assignment agrees to be bound by all the terms of this
Contract.

58. OPERATIONAL GOVERNANCE

The parties agree, within one month of contract date, to use commercially reasonable efforts to
establish a program management plan (“PMO”) for the Contract.

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

SCHEDULE 3 MODEL CLAUSES FOR DATA PROTECTION

THIS SCHEDULE MUST BE COMPLETED AND SIGNED BY THE PARTIES.

STANDARD CONTRACTUAL CLAUSES (PROCESSORS)

For the purposes of Article 26(2) of Directive 95/46/EC for the transfer of personal data to
processors established in third countries which do not ensure an adequate level of data protection

Name of the data exporting organisation: British Telecommunications plc, 81 Newgate Street, London, EC1A 7AJ

tel.:       
                 
               
  fax:  
                
     
                 
 ;

e-mail:      
         
        
                
        
         
        
                 
                  
 

A company registered in England & Wales Number:       
        
           
            
             
             
                

(the data EXPORTER)

and

Name of the data importing organisations: 
            
          
            
           
        
           
               

[the Supplier]

Tel:        
              e-mail:   
                
                
   
   fax:         
            

A company registered in England & Wales Number:  
                 
                
                
             
                 

[the Sub-Contractor if any]

Address tel.:      
                 
              
    fax:             
                
            ;

e-mail:       
                
                
  

A company
registered in [India] Number:  
                
               
             
           
        
                

(jointly and severally, the data IMPORTER)

HAVE AGREED on the following contractual Clauses (the Clauses) in order to

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

adduce adequate safeguards with respect to the protection of privacy and fundamental rights and
freedoms of individuals for the transfer by the data exporter to the data importer of the personal
data specified in Appendix A.

1. DEFINITIONS

For the purposes of the Clauses:

(a) ‘personal data’, ‘special categories of data’, ‘process/processing’, ‘controller’, ‘processor’,
‘data subject’ and ‘supervisory authority’ shall have the same meaning as in 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 (the Directive).

(b) ‘the data exporter’ shall mean the controller who transfers the personal data;

(c) ‘the data importer’ shall mean the processor who agrees to receive from the data exporter
personal data intended for processing on his behalf after the transfer in accordance with his
instructions and the terms of these Clauses and who is not subject to a third country’s system
ensuring to adequate protection;

(d) ‘the applicable data protection law” shall mean the legislation protecting the fundamental
rights and freedoms of natural persons and, in particular, their right to privacy with respect to
the processing of personal data applicable to a data controller in the Member State in which the
data exporter is established:

(e) ‘technical and organisational security measures’ shall mean those measures aimed at protecting
personal data against accidental or unlawful destruction or accidental loss, alteration,
unauthorized disclosure or access, in particular where the processing involves the transmission of
data over a network, and against all other unlawful forms of processing.

2. DETAILS OF THE TRANSFER

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IN CONFIDENCE

The details of the transfer and in particular the special categories of personal data where
applicable are specified in Appendix I which forms an integral part of the Clauses.

3. THIRD-PARTY BENEFICIARY CLAUSE

(a) The data subject can enforce against the data exporter this Clause, Clause 4(b) to (h), Clause
5(a) to (e), and (g), Clause 6(l) and (2),

Clause 7, Clause 8(2), and Clauses 9, 10 and 11, as
third-party beneficiaries.

(b) The data subject can enforce against the data importer this Clause, Clause 5(a) to (e) and (g),
Clause 6(1) and (2), Clause 7, Clause 8(2), and Clauses 9, 10 and 11, in cases where the data
exporter has factually disappeared or has ceased to exist in law.

(c) The parties do not object to a data subject being represented by an association or other body
if the data subject so expressly wishes and if permitted by national law.

4. OBLIGATIONS OF THE DATA EXPORTER

The data exporter agrees and warrants:

(a) that the processing, including the transfer itself, of the personal data has been and will
continue to be carried out in accordance with the relevant provisions of the applicable data
protection law (and, where applicable, has been notified to the relevant authorities of the Member
State where the data exporter is established) and does not violate the relevant provisions of that
State;

(b) that he has instructed and throughout the duration of the personal data processing services
will instruct the data importer to process the personal data transferred only on the data
exporter’s behalf and in accordance with the applicable data protection law and these clauses;

(c) that the data importer shall provide sufficient guarantees in respect of the technical and
organisational security measures specified in Appendix B to this contract;

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

(d) that after assessment of the requirements of the applicable data protection law, the security
measures are appropriate to protect personal data against accidental or unlawful destruction or
accidental loss, alteration, unauthorised disclosure or access, in particular where the processing
involves the transmission of data over a network, and against all other unlawful forms of
processing, and that these measures ensure a level of security appropriate to the risks presented
by the processing and the nature of the data to he protected having regard to the state of the art
and the cost of their implementation;

(e) that he will ensure compliance with the security measures:

(f) that, if the transfer involves special categories of data, the data subject has been informed
or will be informed before, or as soon as possible after, the transfer that his data could be
transmitted to a third country not providing adequate protection;

(g) that he agrees to forward the notification received from the data importer pursuant to Clause
5(b) to the data protection supervisory authority if he decides to continue the transfer or to lift
his suspension;

(h) to make available to the data subjects upon request a copy of the Clauses set out in this
Annex, with the exception of Appendix B which shall be replaced by a summary description of the
security measures.

5. OBLIGATIONS OF THE DATA IMPORTER

The data importer agrees and warrants:

(a) to process the personal data only on behalf of the data exporter and in compliance with his
instructions and the clauses; if he cannot provide such compliance for whatever reasons, he agrees
to inform promptly the data exporter of his inability to comply, in which case the data exporter is
entitled to suspend the transfer of data and/or terminate the contract;

(b) that they have no reason to believe that the legislation applicable to him prevents them from
fulfilling the instructions

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IN CONFIDENCE

received from the data exporter and his obligations under the Contract and that in the event of a
change in this legislation which is likely to have a substantial adverse effect on the warranties
and obligations provided by the Clauses, they will promptly notify the change to the data exporter
as soon as they are aware, in which case the data exporter is entitled to suspend the transfer of
data and/or terminate the contract;

(c) that they have implemented the technical and organisational security measures specified in
Appendix B before processing the personal data transferred;

(d) that they shall promptly notify the data exporter about:

(i) any legally binding request for disclosure of the personal data by a law enforcement authority
unless otherwise prohibited, such as a prohibition under criminal law to preserve the
confidentiality of a law enforcement investigation;

(ii) any accidental or unauthorised access; and

(iii) any request received directly from the data subjects without responding to that request,
unless he has been otherwise authorised to do so;

(e) to deal promptly and properly with all inquiries from the data exporter relating to his
processing of the personal data subject to the transfer and to abide by the advice of the
supervisory authority with regard to the processing of the data transferred;

(f) at the request of the data exporter to submit his data processing facilities for audit of the
processing activities covered by the clauses which shall be carried out by the data exporter or an
inspection body composed of independent members and in possession of the required professional
qualifications bound by a duty of confidentiality, selected by the data exporter, where applicable,
in agreement with the supervisory authority;

(g) to make available to the data subject upon request a copy of the Clauses set out in this Annex,
with the exception of Appendix B

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IN CONFIDENCE

which shall be replaced by a summary description of the security measures in those cases where the
data subject is unable to obtain a copy from the data exporter.

6. LIABILITY

1. The parties agree that a data subject, who has suffered damage as a result of any violation of
the provisions referred to in Clause 3 is entitled to receive compensation from the data exporter
for the damage suffered.

2. If a data subject is not able to bring the action referred to in paragraph I arising out of a
breach by the data importer of any of his obligations referred to in Clause 3 against the data
exporter because the data exporter has disappeared factually or has ceased to exist in law or
became insolvent, the data importer agrees that the data subject may issue a claim against the data
importer as if he were the data exporter.

3. The parties agree that if one party is held liable for a violation of the clauses committed by
the other party, the latter will, to the extent to which it is liable, indemnify the first party
for any cost, charge, damages, expenses or loss it has incurred.

Indemnification is contingent upon:

(a) the data exporter promptly notifying the data importer of a claim; and

(b) the data importer being given the possibility to cooperate with the data exporter in the
defense and settlement of the claim.

7. MEDIATION AND JURISDICTION

1. The data importer agrees that if the data subject invokes against him third-party beneficiary
rights and/or claims compensation for damages under the clauses, the data importer will accept the
decision of the data subject:

(a) to refer the dispute to mediation, by an independent person or, where applicable, by the
supervisory authority;

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

(b) to refer the dispute to the courts in the Member State in which the data exporter is
established.

2. The data importer agrees that, by agreement with the data subject, the resolution of a specific
dispute can he referred to an arbitration body if the data importer is established in a country
which has ratified the New York Convention on enforcement of arbitration awards.

3. The parties agree that the choice made by the data subject will not prejudice his substantive or
procedural rights to seek remedies in accordance with other provisions of national or international
law.

8. COOPERATION WITH SUPERVISORY AUTHORITIES

1. The data exporter agrees to deposit a copy of this contract with the supervisory authority if it
so requests or if such deposit is required under the applicable data protection law.

2. The parties agree that the supervisory authority has the right to conduct an audit of the data
importer which has the same scope and is subject to the same conditions as would apply to an audit
of the data exporter under the applicable data protection law.

9. GOVERNING LAW

The Clauses shall be governed by the law of the Member State in which the data exporter is
established, namely England and Wales.

10. VARIATION OF THE CONTRACT

The parties undertake not to vary or modify the terms of the Clauses.

11. OBLIGATION AFTER THE TERMINATION OF PERSONAL DATA PROCESSING SERVICES

1. The parties agree that on the termination of the provision of data processing services, the data
importer shall, at the choice of the data exporter, return all the personal data transferred and
the copies thereof to the data exporter or shall destroy all the personal data and certify to the
data exporter that he has done so, unless legislation imposed upon the data importer prevents him
from returning or destroying all or part

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

of the personal data transferred. In that case, the data importer warrants that he will guarantee
the confidentiality of the personal data transferred and will not actively process the personal
data transferred anymore.

2. The data importer warrants that upon request of the data exporter and/or of the supervisory
authority, he will submit his data processing facilities for an audit of the measures referred to
in paragraph 1.

ON BEHALF OF THE DATA EXPORTER:

Name (written out in full):

	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Position:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 
	 	 	 	 
	
Signature
	 	 

	 	 
	 
	 	 	 	 
	ON BEHALF OF THE DATA IMPORTER:
	 	 
	 
	 	 	 	 
	Name [the Supplier]:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Position:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	
Signature
	 	 	 	 
	 
	 	 	 	 
	Name
[the Sub-Contractor if any]:
	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Position:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

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ACT; [***] DENOTES OMISSIONS.

	 	 	 	 	 
	IN CONFIDENCE
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	
Signature
	 	 	 	 

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

SCHEDULE 3 APPENDIX A

THIS APPENDIX MUST BE COMPLETED AND SIGNED BY THE PARTIES

DATA EXPORTER

The data exporter is British Telecommunications plc who has

DATA IMPORTER

The data importer is

DATA SUBJECTS

The personal data transferred concern the following categories of data subjects:

CATEGORIES OF DATA

The personal data transferred concern the following categories of data:

(ARROW)

SPECIAL CATEGORIES OF DATA (IF APPROPRIATE)

No data classified as Sensitive Personal Data will be processed
outside the EEA.

PROCESSING OPERATIONS

The personal data transferred will be subject to the following basic processing activities:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	DATA EXPORTER	 	 	 	DATA IMPORTER	 	 
	 
	 
	 	Name:	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 

Authorised signature
	 	 	 	 	 	 

Authorised signature
	 	 

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IN CONFIDENCE

SCHEDULE 3 APPENDIX B

THIS APPENDIX MUST BE COMPLETED AND SIGNED BY THE PARTIES

Description of the technical and organisational security measures implemented by the data importer
in accordance with Clauses 4(d) and 5(c) (Schedule 3):

Generic measures for each service line in Appendix A [1 though 6]

Operational Organizational Measures

Technical and Security Measures

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IN CONFIDENCE

SCHEDULE 4 THE BT SECURITY POLICY FOR SUPPLIER

This Schedule consists of this Cover Page of BT Security Requirements and BT Security Policy
appended hereto.

The Supplier shall ensure that the provision of the Services and/or the performance of the Services
under this Contract shall not cause the BT Group of Companies to breach its BT Security Policy and
ISO17799 as set out in the Schedule.

Good security practices are essential to protect both company and customer related information.
This is why, the BT Group of Companies, are committed to securing compliance with relevant
legislation, protecting confidentiality and maintaining customer confidence by adopting British
Standard 7799 and ISO 17799, which is as follows:

BT SECURITY REQUIREMENT

While information is the cornerstone of our ability to provide superior service, our most important
asset is our customers’ trust. Keeping information secure, and using it only as it is intended to
be used, is a top priority for all of us at BT. In order to establish and maintain the levels of
information security during the Term of this Contract on the part of the Supplier, Supplier and
it’s Contract Personnel must comply with the BT Security Policy. To the extent that the terms of
this Schedule conflict with terms of this Contract between Supplier and BT, the terms of this
Schedule shall prevail.

1 DEFINITIONS

The following expressions are used in this Schedule:

“Access” means interconnection with BT Systems and access to BT Information.

“Authorised” means having undergone and being fully compliant with NAIF.

“BT Information” means all information (including BT customer information) used or accessible to
the Supplier in association with providing the Service.

“BT Security Contact” means BT Security Operations Centre (0800321 999) or such other person whose
details shall be notified by BT to the Supplier from time to time.

“BT Security Policy” means the annexe in Schedule 1.

“BT Systems” means [insert brief description of relevant BT systems] and/or such other systems as
may be agreed in writing from time to time by the BT and the Supplier.

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IN CONFIDENCE

“BT Human Resources Policy” means guidelines at www. [TBC] issued by BT in regards to appointment
of Contract Personnel who will work for BT under this Contract.

“Disaster Recovery Plan” means the Supplier’s plans to maintain Service in the event of natural or
man made incident that affects their ability to provide Service from the primary location and/or
site.

“ISO17799” means the International Security Standard.

“NAIF” — Network Authorisation and Interconnect Facility is a procedure to register all UK and
Global network interconnects between BT and external companies. An interconnect request is
initiated by a BT Project Manager by completing a BT web based form.

“Process” means operational procedures.

“Purposes” means the proper performance by the Supplier of its obligations under and in accordance
with the Contract.

“Standards” means all the relevant standards associated with information management security.

For the avoidance of doubt without prejudice to the definition of “BT” in the condition headed
“definitions”, in this schedule “BT” shall include British Telecommunications PLC.

“Target” means systems, applications, switches, routers, and any other related equipment.

2 BT SECURITY REQUIREMENTS AND SUPPLIER’S OBLIGATIONS

The Supplier warrants that it shall take all reasonable steps to comply with BT Security Policy as
well as the detailed policies as follows which shall form the basis of Supplier’s information
management and
security policy and the Supplier shall demonstrate to BT that it has either achieved compliance
with ISO17799 or is working towards such achievement.

2.1 The Supplier shall comply with BT policy on information classification, handling and disposal.

2.2 The Supplier shall comply with BT’s physical and logical access controls.

2.3 The Supplier shall not use BT Information for any purpose other than for the Purposes and
performance of the Services.

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IN CONFIDENCE

2.4 The Supplier shall take reasonable steps (subject to the provision of the Contract) to preserve
the integrity of BT Information and to prevent any corruption or loss of BT Information.

2.5 The Supplier shall permit BT or its authorised representatives access at any time to any
premises or computer equipment at or from which Access can be obtained in order to verify
compliance with the Contract by performing physical and logical audits as well as penetration
testing to ensure compliance with BT Security Policy and Standards.

2.6 BT requires the Supplier to maintain systems which detect and record any attempted damage,
amendment or unauthorised access to BT Information.

2.7 The Supplier authorises BT to investigate any security breach, including the confiscation for
evaluation of any suspected or infringing hardware.

2.8 The Supplier shall train all the Contract Personnel in security awareness to BT standards, with
special emphasis on the secure handling and management of passwords, tokens and information.
Contract Personnel may be expected to complete the BT CBT training modules or equivalent, as
advised by BT during the Term of the Contract.

2.9 The Supplier shall use its best endeavours to ensure that any link, email or any communication
whatsoever that convey information relating to this Contract and/or the Services and traverse a
non-BT owned network, the said information must be protected by encryption to the standards defined
in the BT Security Policy particularly 3 DES 128 bit.

2.10 The Supplier shall appoint a single point of contact for any security issues i.e. a senior
manager or CIO responsible for security.

2.11 When requested by BT, the Supplier shall make available for review the Supplier’s Disaster
Recovery Plan with respect to this Contract and recovery plan exercise, practice, rehearsal or
drill results.

2.12 The Supplier shall make available for review the Supplier’s operational procedures relevant to
this Contract to determine the Supplier’s compliance with BT Security Policy.

2.13 The Supplier shall conduct recruitment checks, subject to the restrictions (legal or
otherwise) and customary practices applicable in the jurisdiction in which the recruitment checks
are conducted, to comply with BT Human Resources Policy found in Appendix 2 of this

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IN CONFIDENCE

Schedule and supply BT with documentary evidence of such checks as and when requested by BT.

2.14 The Supplier shall notify the BT Security Contact of any changes to its Access method through
the firewalls, including the provision of network address translation.

2.15 The Supplier shall notify BT immediately should any Contract Personnel be removed for any
reason whatsoever from this Contract thus enabling BT to disable, transfer or modify the access
rights to systems and information.

2.16 The Supplier shall not (and, where relevant, shall procure that any Contract Personnel shall
not) without the prior written consent of the BT Security Contact connect any equipment not
supplied by BT to any BT LAN port.

2.17 The Supplier shall inform the BT Security Contact immediately upon its becoming aware of any
actual or suspected unauthorised Access or misuse of BT Systems or BT Information or breach of any
of the Supplier’s obligations under this Condition.

2.18 The Supplier consents to BT’s gathering information relating to Access. This information may
be collected, retained, and analysed to identify potential security risks and may include, but is
not limited to, trace files, statistics, network addresses, and the actual information or screens
accessed or transferred.

2.19 The supplier shall ensure that all BT information, contract personnel and networks involved
with this contract are logically and physically separated in a secure manner from all other
information, personnel or networks created or maintained by the Supplier.

3 ACCESS

3.1 BT allows (so far as it can and is able to do so) the Supplier, while the Supplier is
Authorised Access solely for the Purposes.

3.2 In relation to Access, the Supplier shall (and,
where relevant, shall procure that all Contract Personnel shall):

(a) ensure each individual user has a unique user identification and password known only to such user.

(b) promptly provide to BT such reports as BT shall from time to time require concerning the
Supplier’s use and security of Access and any related matters.

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IN CONFIDENCE

(c) ensure that physical access to computer equipment having Access or storing or having access to
BT Information is password-protected to reflect the Supplier’s obligations.

(c) ensure onward bridging or linking to BT computer systems is prevented unless authorised by BT
and complies with Security Standards as defined in the BT Security Policy.

(d) ensure no viruses or malicious code (as the expressions are generally understood in the
computing industry) are introduced to and that there is no corruption of BT Systems or BT
Information.

4 SECURITY REVIEW

4.1 The Supplier is cognisant of BT’s requirement to carry out regular assessment of Supplier’s
compliance of BT Security Policy which would include all elements of physical and logical audits,
penetration testing and items listed in Clause 2 and 3 above of the Supplier’s Systems (“Security
Review”). The Supplier shall facilitate this assessment by permitting BT to collect, retain and
analyse information to identify potential security risks and may include but not limited to trace
files, statistics, network addresses and the actual information or screens accessed or transferred.

4.2 In the event, BT identifies a threat, to the confidentiality, integrity or availability of BT
Information in Supplier’s Process or Systems, Supplier shall promptly correct any threat of
security risk in the Supplier’s Process or Systems that is revealed in the Security Review, as soon
as reasonably practicable under the circumstances.

4.3 Supplier shall co-operate in any Security Review, providing reasonable access, accommodation,
facilities and assistance to BT employees all Supplier’s Systems as reasonably necessary to verify
the integrity of security of Supplier’s Systems including permitting interview of any sales,
engineering or other operational personnel of Supplier to ensure compliance of BT Security Policy
to Supplier’s premises.

5 TERMINATION

5.1 In the event, the Supplier fails, neglects and/or refuses to rectify the Security Risk as
identified in the Security Review during the Term of the Contract within thirty (30) days of
written notice of such breach from BT, BT may terminate this Contract for material breach without
prejudice to any other rights BT may have against the Supplier under this Contract for breach
and/or default.

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IN CONFIDENCE

5.2 The Supplier shall indemnify BT from and against any third party costs, losses, damages,
proceedings, claims, expenses or demands incurred or suffered by BT which arise as a result of
third party claims against BT as a result of this breach by the Supplier of its obligations under
this Schedule;

provided that Supplier shall pay all such damages, costs and expenses arising from such claim as
finally awarded against BT to such third party by a court of competent jurisdiction after all
appeals have been exhausted or at the time of a final settlement of such claims or final award or
out of court settlement, if applicable, subject to the terms set forth in Paragraph 33.11 and
33.12.

6 RIGHTS AFTER TERMINATION

If the Supplier has during the course of the Contract received Information in a recorded form from
BT (or has recorded received Information), the Supplier shall return or destroy such records upon:

(a) expiry or termination of the Contract; or

(b) upon earlier request unless such records are part of the Services.

7 ACCESS TO SUPPLIER SYSTEMS

7.1 If Contract Personnel is granted access to the Suppliers Systems that hold, process or access
BT Information the Supplier shall:

a) ensure each individual Contract Personnel has a unique user identification and password known
only to such user for their sole use.

b) promptly provide to BT such reports as BT shall from time to time require concerning the
Supplier’s use and security of access to Supplier Systems.

c) allow access to BT Information and application system functions in Supplier System to the
minimum required to enable the Contract Personnel perform their duties.

d) allow access to Contract Personnel holding or accessing BT Information using a secure login
process.

e) establish formal procedures to control the allocation and de-allocation of access rights to
Contract Personnel who have access to BT Information and/or system functions

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IN CONFIDENCE

f) ensure that the allocation and use of powerful privileges and access to sensitive tools and
facilities in Supplier Systems are controlled and limited to only those users who have a business
need.

g) ensure that the allocation of user passwords to Supplier Systems that hold or access BT
Information is controlled through a formal auditable management process.

h) conduct regular reviews of user access rights.

i) ensure that remote and home working activities are only permitted where authorised by BT and
subject to appropriate security controls within the Supplier’s organisation including but not
limited to remote access by users is subject to strong authentication.

j) demonstrate that users follow good security practices in the management of their passwords.

k) ensure that a password management system is in place to provide a secure and effective
interactive facility that ensures quality passwords.

l) ensure that user sessions are terminated
after a defined period of inactivity.

m) ensure that audit logs are generated
to record user activity and security-relevant events.

n) ensure that monitor audit and event logs is performed by Supplier’s staff independent of those
users being monitored.

o) make available audit logs where required by
the requirements in the Order to BT for review.

p) use encryption techniques ( as a minimum 3 DES 128 bit) to protect the confidentiality and
integrity of sensitive information.

q) harden all systems holding, processing or accessing BT Information to BT standards
(available from the BT Standards web site on request).

r) ensure that development, test and live environments are segregated from the other work
areas in Supplier’s buildings.

s) implement controls
to detect malicious software and protect against the malicious software.

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IN CONFIDENCE

7.2 The Supplier must demonstrate that Contract Personnel who hold and use data on PCs and mobile
computing devices are responsible for ensuring that the PCs and mobile computing device are
protected from unauthorised access. BT Information with classification “In Confidence” and above
information must be encrypted on all mobile computing devices

7.3 The Supplier shall ensure that all Supplier Systems have formal security incident management
procedures with defined responsibilities.

7.4 Any un-authorised software is identified and removed from Supplier Systems holding, processing
or accessing BT Information.

7.5 Access to diagnostic and management ports as well as diagnostic tools must be securely
controlled to BT’s reasonable satisfaction.

7.6 Access to audit tools must be restricted.

7.7 Enhanced independent code reviews are be performed (including penetration testing) on all
Supplier Systems.

7.8 Supplier’s servers must not be deployed on un-trusted networks without appropriate security
controls.

7.9 Changes to any Targets must be controlled and subject to formal change control procedures. All
documentation relating to Targets must be protected from un-authorised access or amendment.

7.10 Security procedures and controls must be used to secure equipment holding, accessing or
processing BT Information used in Supplier Systems but outside the Suppliers premises.

8 BUSINESS CONTINUITY

8.1 When requested by BT, the Supplier shall make available for inspection the Supplier’s business
continuity plan and disaster recovery plans with respect to this Contract and recovery plan
exercise, practice, rehearsal or drill results.

8.2 The Supplier must demonstrate that they have conducted a thorough business impact analysis and
risk analysis which takes an holistic view of possible disruption to their ability to meet BT’s
business requirements on the occurrence of a force majeure event that has or is likely to have an
effect on the Services or on

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IN CONFIDENCE

the occurrence of disaster from natural or man made incident that affects their ability to provide
Service from the primary location and/or site. Consideration of the following 8 dimensions of their
operations should be demonstrable to BT.

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IN CONFIDENCE

8.3

	 	 	 
	ASPECT OF	 	 
	CORPORATE	 	 
	RESILIENCE	 	EXAMPLES OF RISKS (BUT NOT EXCLUSIVELY)
	NETWORKS

	 	Single points of failure or nodes which are insufficiently
protected, either physically or with disaster recovery
solutions
	 
	 	 
	SYSTEMS

	 	a critical system which is supported from only a single
building, has no disaster recover fall back capability,
has no feasible workaround if down, running on unsupported
software or is supported by only a very few people with
highly specialised skills.
	 
	 	 
	PEOPLE AND PROCESES

	 	a critical process can only be operated by a few people
with specialist skills or knowledge; people operating in
areas with environmental or civil unrest threats
	 
	 	 
	PROPERTY

	 	A key process can be operated from only one or two
specific locations; the building/site is of sub-standard
construction or poorly maintained or there is an
environmental hazard to buildings (nearby danger of fire,
flood, civil disturbance, traffic congestion preventing
access etc)
	 
	 	 
	SUPPLY CHAIN

	 	A dependency on a single supplier for a service/product
without which the service/product could not be (this
includes internally traded services/products) delivered to
time and quality that BT expects.
	 
	 	 
	DATA

	 	Information necessary to support BT business is poor
quality, not sufficiently available or not sufficiently
secure
	 
	 	 
	CUSTOMERS

	 	Will the business be able to survive the loss of a major
contract or conversely deliver on a significant increase
in business without loss of quality?

8.4 Supplier must produce a report of risks resulting from a business impact analysis/risk
assessment (“BIA/RA”) which is supplied to BT in a form defined by BT at the time such that it is
suitable for inclusion in the BT risk review process.

8.5 For risks of a severity level which is determined by BT at the material time, the Supplier must
be able to show a plan to mitigate the risk within a time period agreed with BT.

8.6 The Supplier must produce an end-to-end business continuity plan for all key processes
supporting BT within a single framework of business continuity. The plans for all key buildings
which buildings from where Services are provided with

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IN CONFIDENCE

associated risk assessment
and fallback exercise results must be available for BT to inspect.

8.7 The Supplier’s business continuity strategy should be compliant with BS25999 or an equivalent
local country standard. Supplier has a continued focus on strengthening the resiliency of its
business. To that end, Supplier has a Risk Management Team focused on business continuity. Supplier
has also engaged with a leading third party risk management consulting firm to assist Supplier to
build a standards based business continuity framework in alignment with the new BS 25999 standard.
As the BS25999 standard has only recently become finalized, Supplier has already established a goal
to become compliant with the recently finalized BS25999 by December 31, 2007.

Supplier is currently ISO 27001 certified. This certification ensures compliance with not only
information security but also business continuity best practices.

8.8 The Supplier must be able to demonstrate that business continuity is embedded in its culture
through regular communications and ensuring ownership within operational teams as well as through
central co-ordination.

8.9 The Supplier’s BIA/RA and business continuity plans must be reviewed, maintained and tested
regularly (at least annually). The results of such review and testing must be available to BT on
request.

8.10 The Supplier must be able to demonstrate that any partner companies, sub-contractor,
outsourcing agencies or other suppliers on which it depends to deliver BT requirements are
resilient and have a similar and sufficient degree of business continuity requirements as are
imposed on the Supplier by this Contract. These processes shall include incident reporting
including internal escalation within the Supplier’s company, together with immediate escalation and
reporting of defined events to BT in accordance with the Schedule headed “Governance”.

8.11 The Supplier shall immediately notify BT Security Contact if it becomes aware of anything that
may have a material adverse effect on the Supplier’s ability to perform its obligations under this
Contract or is experiencing an incident of a severity where it is judged that it is possible that
BT business may be impacted.

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IN CONFIDENCE

8.12 The Supplier must be able to demonstrate a robust incident management strategy which must be
regularly exercised. The BT Security Contact must be notified of planned exercises to give BT the
opportunity to attend and observe these exercises as appropriate, and the results of such exercises
made available to BT.

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IN CONFIDENCE

SCHEDULE 4 APPENDIX 1 — BT SECURITY POLICY

[***]

[***]

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IN CONFIDENCE

SCHEDULE 4 APPENDIX 2 — BT HUMAN RESOURCES RECRUITMENT POLICY

1. SUPPLIER’S SELECTION PROCESS

The Supplier shall:

1.1 Confirm that, as a minimum requirement, their recruitment policy and processes align with BT’s
pre-employment checks, policy and processes, in particular in relation to basic ID checks,
references, health declaration and criminal convictions, as detailed below;

1.2 Warrant that the Contract Personnel provided to perform Work under the Contract meet, and
continue to meet for the duration of their assignment under the terms of this Contract, BT’s
minimum pre-employment requirements;

1.3 ensure that no individual who has previously held a BT contract of employment, and has left BT
on redundancy terms, is assigned to a BT Work Package in the same capacity (grade or job type) or
location that they were employed in on their last official day with BT. In any event, where any
person who has taken redundancy from BT is assigned back to BT through the Supplier, a minimum of
28 days must have elapsed between their last official day with BT and the first day of assignment
to BT.

1.4 Provide BT with documentary evidence of the requirements detailed herein on request from BT.

2. VETTING OF CONTRACT PERSONNEL

2.1 The Supplier shall ensure that the following checks have been undertaken prior to contract
personnel being assigned to the Contract. Full details shall be retained on file and made available
to BT at BT’s request.

A) IDENTITY — to be verified by current Photographic ID such as current Passport or photographic
Driving Licence.

B) PROOF OF RESIDENCE — verified by one of the following e.g. Utility Bill, National Insurance or
Medical Card, Tenancy Agreement or equivalent.

C) RIGHT TO WORK IN THE COUNTRY THAT THE WORK IS TO BE PERFORMED — If Work is to be performed in
the UK, the right to work must be verified in line with the Immigration and Asylum Act 1996
regulations and a valid Work Permit must be produced for non-UK nationals where there is no
standard right of employment agreement in place.

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IN CONFIDENCE

For all other countries where Work is to be performed, the Supplier shall ensure that it meets any
specific legal and or regulatory requirements as appropriate.

D) EDUCATIONAL AND PROFESSIONAL QUALIFICATIONS (IF REQUESTED BY BT AS PART OF A WORK PACKAGE) — The
Supplier shall ensure that all documents presented by the Contract Personnel are original copies
and that copies are held on file and available for inspection by BT on request.

E) CRIMINAL CONVICTIONS DISCLOSURE — Prior to an offer of employment being made, the Supplier shall
ensure that all potential Contract Personnel sign a statement declaring whether they have any
criminal convictions, or are subject to any ongoing criminal investigations. Where the individual
makes any such declaration, the Supplier shall assess the situation and, if in any doubt, refer the
application to BT for joint review and agreement.

In relation to Work performed on-site in the UK, the Supplier shall ensure that all contract
personnel sign a Criminal Disclosure Certificate that has been issued within the past two years. If
the Supplier fails to ensure that Contract Personnel do not meet this requirement within 30 days of
the start of the assignment, BT shall have the right to remove such personnel from the Contract
without prior notice and the Supplier shall be liable for providing a replacement at its own cost.

F) HEALTH DECLARATION — The Supplier shall ensure that potential Contract Personnel sign a health
declaration form sufficient to enable a full assessment of health to be undertaken by the Supplier.

2.2 BT shall have the right of access to all documentation relating to the recruitment process and
to appoint a BT representative to assist and/or monitor the recruitment process e.g. interview
selection, on request.

2.3 The Supplier shall complete a summary checklist confirming that all the above checks have been
made, and appropriate documentation (original) has been evidenced and copies held on file. The
summary checklist shall include as a minimum:

- Candidate Name.

- Line Manager.

- Vacancy Job Title and
BT Work Package, Purchase Order or Project name.

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IN CONFIDENCE

- Photographic proof of identity.

- Proof of residence.

- Proof of right to work.

- Educational and professional qualifications.

- Criminal Convictions Disclosure completed and signed.

- Health Declaration completed and signed.

- Signature and full details of duly authorised Supplier representative to verify the above.

2.4 The Supplier shall ensure that all Contract Personnel assigned to this Contract are
contractually obligated, under their conditions of employment, to notify the Supplier immediately
of any material change in their personal circumstances that may impact on the status of their
employment including, but not limited to, for example: criminal convictions and/or cases pending,
health declaration, right to work in the country where Work is to be performed etc.

3. REFERENCING

3.1 The Supplier shall follow the referencing procedure outlined below at all times. Each item must
be viewed as progressive, failure to comply with each item, in order shown, shall result in
rejection of a potential assignee to the Contract. All Contract Personnel shall be fully referenced
by the Supplier for a period of 3 years in writing.

a) Exceptionally, and only by agreement with BT, where BT requires contract personnel at short
notice (and this cannot be done prior to commencement of assignment) the Supplier must ensure that
verbal references are taken and recorded on file, specifying name of referee, date reference was
taken, responses given and the name of the consultant who took the reference. BT reserves the right
to request evidence that verbal references have been taken.

b) The Supplier shall undertake an interview to establish the background of the potential Contract
Personnel to BT. The Supplier shall investigate the individual’s employment history, including
previous employers, nature and periods of work or unemployment e.g. student’s, housewife or
receiving government benefit. If the Supplier is not fully satisfied at the time of interview and
the information given cannot be substantiated, then the Supplier must reject the individual from
being assigned to the Contract.

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IN CONFIDENCE

c) The Supplier shall follow up the individual’s references by requesting written confirmation from
previous employers. The only exception to this shall be where the previous individual’s employer(s)
has been declared as bankrupt. If this is the case, the Supplier shall seek further employment
references and verification of character.

d) Where a character/personal reference is sought, the Supplier must ensure this is obtained from a
person with an authoritative status such as that of a professional or managerial nature. These
references shall be verbally verified, such verbal verification being appropriately recorded and
held on file.

e) If the individual so assigned was a Contract Personnel for an existing client of the Supplier,
the Supplier must seek to ensure the individual has been fully referenced in accordance with this
clause. BT reserves the right to audit any of the above at any time, throughout the duration of the
contract.

f) The Supplier shall complete a referencing certificate for all Contract Personnel assigned to the
Contract. A copy shall be retained in the Contract Personnel’s work record / personnel file to
complete the audit trail.

4. QUALITY OF CONTRACT PERSONNEL

4.1 Skills and Experience

4.1.1 Contract Personnel must be willing to undertake the full range of responsibilities required
by individual Work Packages/Purchase Orders and in accordance with the full terms and condition of
this Contract.

4.1.2 It shall be the responsibility of the Supplier to provide personnel with the necessary
skills, qualifications, experience and personal qualities in order that they are fully equipped to
undertake the full requirements outlined in the job dimension and individual role as defined by the
BT Work Package/Purchase Order.

4.1.3 The Supplier must show a commitment to equal opportunities in their recruitment to all people
meeting the requirements of the job irrespective of their race, religion, sex, age, marital status
or disability.

4.1.4 All Contract Personnel shall be expected to demonstrate a high level of commitment and
motivation to work well as part of a team, to be measured by periodic individual appraisals
undertaken by the Supplier.

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IN CONFIDENCE

4.1.5 All Contract Personnel deployed against the Contract must meet the necessary standards of
conduct and appearance as reasonably required by BT.

4.2 Individual Appraisals: The Supplier shall issue individual appraisals on its own forms, to
measure the performance and progress of Contract Personnel. These forms shall be issued after the
initial 6 months period and then again at 12 months, and subsequently at twelve monthly intervals.
If the assignment is of less than 6 months, an appraisal shall be issued at the end of the
Assignment. The format and content of the Supplier’s individual appraisal shall be approved and
agreed with BT.

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IN CONFIDENCE

SCHEDULE 4 APPENDIX 2 ANNEX 1

IN STRICTEST CONFIDENCE

CRIMINAL DISCLOSURE DECLARATION

	 	 	 	 	 
	NAME
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	ADDRESS
	 	 	 	 
	 

	 	 

	 	 

Have you ever been found guilty by a court or court martial of any offence or is there any case
against you pending?

Yes o No o

IF YES — PLEASE PROVIDE DETAILS:-

SIGNED:

DATE

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SCHEDULE 5 — INTENTIONALLY LEFT BLANK

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IN CONFIDENCE

SCHEDULE 6 — IT SERVICES

1 SCOPE OF WORK

1.1 The Supplier shall provide a range of IT Services to BT, and to any BT programmes without
restriction to group or division under this Contact. Supplier shall thus have the right to provide
IT Services to, or for, all BT programmes. Specific requirements and terms of any engagement shall
be detailed in individual Statement of Requirements or Work Packages that may be agreed from time
to time during the Term of the Contract.”

1.2

	 	 	 	 	 	 	 
	Software Product Maintenance and Support	 	IT related Professional Services
	-

	 	2nd and 3rd line Software support
	 	-
	 	3rd party software development services
	-

	 	Applications support
	 	-
	 	Applications management
	-

	 	Database administration
	 	-
	 	Business analysis
	-

	 	Databuild
	 	-
	 	IT consultancy
	-

	 	Helpdesk
	 	-
	 	IT programme management
	-

	 	Software maintenance
	 	-
	 	IT project managements
	 

	 	 	 	-
	 	Systems integration
	 

	 	 	 	-
	 	Technical specialists
	 

	 	 	 	-
	 	Validation, Verification and
testing (VV&T services)

1.3 INTENTIONALLY LEFT BLANK

1.4 The Work shall be performed subject to BT’s Statement of Requirements and the Terms and
Conditions of the Contract, including BT Generic Standards and BT Security Requirements.

2 ORDERING PROCESS

2.1 BT specific requirements for provision of IT Services under the Contract shall be detailed in
individual Statement of Requirements produced by the BT project manager.

2.2 At BT’s request, the Supplier shall provide a formal quotation, in line with the overall Terms
and Conditions of the Contract, for the provision of Services detailed in the individual Statement
of Requirements. Such quotations shall bear a unique reference for identification purposes.

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2.3 For any time and materials (“T&M”) based RFQ’s, pricing information must be provided by the
Supplier using the pricing template attached at Appendix 1 along with any supplementary
information.

2.4 For any fixed price (“FP”) based RFQs, pricing information must be provided by the Supplier
using the cost information template in Appendix 1.

2.5 Where the Supplier submits a quotation for a Requirement which falls outside of the maximum
prices outlined in paragraph 4 above, the Supplier shall provide detailed reasons supported by
detailed costings.

2.6 A request from BT for a quotation (RFQ) shall not constitute an offer by BT to enter into a
Contract for provision of Services, but is an invitation to the Supplier to submit a proposal to
BT.

2.7 The Supplier’s proposal in response to a RFQ shall constitute an offer to BT, which shall be
open for acceptance by BT for a period of 90 days from the date of the proposal.

2.8 In the event that BT accepts an offer, BT shall formally notify the Supplier by issue of an
individually numbered Purchase Order. No commitment shall be deemed to have been made by BT prior
to the issue of a Purchase Order, duly authorised by BT Corporate Procurement Partners.

2.9 In the event that BT rejects an offer, then BT shall not have any liability for any costs
incurred for work done by the Supplier in preparing a proposal in response to a RFQ.

2.10 Work carried out under an individual Purchase Order may be terminated in accordance with the
Condition headed “Termination”. Termination of Work carried out under individual Purchase Orders
shall not affect the status of Work carried out or to be carried out under other Purchase Orders
let under the Contract.

2.11 The Work shall be performed subject to the BT Statement of Requirements and the terms and
conditions of this Contract.

3 GENERIC CONTRACT PERFORMANCE REQUIREMENTS

3.1 BT’s project specific performance requirements shall be defined in the individual Work Package
where required.

3.2 BT and the Supplier shall agree on Service Level Agreements (SLAs) in the Work Package which
may provide for liquidated damages/remedies upon failure to comply with the SLAs as agreed to by
the parties in the Work Package.

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IN CONFIDENCE

3.3 BT requires the Supplier to measure, document and report performance monthly

3.4 Persistent Failure by the Supplier to meet Performance Requirements or project specific SLA’s
as stated in the Work Package, , shall result in the Supplier being in breach of Contract (but not
necessarily material breach) and BT shall be entitled to recover Liquidated Damages in accordance
with the Condition of Contract entitled Default and Liquidated Damages. Where BT contributes to any
delay or failure of the SLA, project time-scales will be revised to take account of the impact of
BT’s contribution to the delay or of the failure of the SLA. Liquidated Damages will then be
recalculated to take into account BT’s contribution to the delay.

4 MANAGEMENT INFORMATION

In addition to the Performance Monitoring reports and Governance reporting, the Supplier shall
provide the following information to the BT Commercial Contact on a monthly basis in the format
advised by BT:

- Performance against budget — including total billed to date by project and job, balance
outstanding against order value by project and job, value of any applicable discounts;

- Number of contractors compared to the Supplier’s FTE by project;

- Meetings with BT project managers and new prospects discussed;

- Resource utilisation — including total number of resource deployed by
project;

- Churn of resource against BT projects 

- Projects/Work in delay; 

- Status reports on skill-sets register.

5 HOURS OF SERVICE

5.1 Unless otherwise specified in the Statement of Requirements or Purchase Order, the Supplier may
provide the Services during the normal offshore working day.

5.2 Where there is an operational need identified in the Statement of Requirements for Work
performed offshore to be performed according to UK Working Day hours this will be at no extra
charge to BT.

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IN CONFIDENCE

6 THIRD PARTY SOFTWARE LICENCE

The Supplier will provide generic hardware and all software required for performance of the
Services subject to the terms of Supplier’s Hardware and Software Policy to be provided by Supplier
and mutually agreed upon by BT and Supplier.

6.1 In the event, the Supplier does not have the relevant licences; the Supplier shall use
reasonable endeavours to procure the relevant licences with immediate effect to enable them to
discharge their obligation during the performance of the Services for BT. All cost sustained in
procurement of these licences shall be borne by the Supplier being part of its obligation under
this Clause, or as agreed in writing by the parties.

7 QUALITY REQUIREMENTS

7.1 The Supplier shall work to a Quality Management System that meets the requirement of BS/ISO9000
or equivalent, such as CMMiL3 or above. A body approved by any of the National Accreditation
Councils must issue the certificate, if applicable.

7.2 BT requires its Suppliers to have recognised industry specific quality accreditation (e.g. SEI
CMM, ISO TickIT. BS15000). The Supplier shall provide details of its current accreditation.

7.3 The Supplier will carry out and be able to supply evidence of periodic quality checks (at least
quarterly) to ensure the consistency of delivery of the Supplies, and the provision of management
information as agreed.

7.4 If the Supplier, having had at the Commencement Date a Quality Management System certified to
comply with the requirements of BS/ISO9001 (EN 29001 or other equivalent) by an accredited
certification body, ceases to maintain the certification, then the Supplier, for avoidance of
doubt, shall be in breach of the Contract. (This shall also apply to any sub-contractors that may
be used).

7.5 At the end of each Work Package the supplier will carry out and document an End of Stage
assessment and, following live implementation, will contribute to the Post Implementation Review
(PIR). Lessons learnt for both reviews must be applied to future work packages.

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IN CONFIDENCE

8 PRICING AND PRICING ARRANGEMENTS

8.1 In consideration of the Supplier undertaking the Work, BT shall pay the Supplier such amounts
as specified in the Purchase Order.

8.2 For T&M based Work, the amount to be paid by BT for the Work shall be calculated in accordance
with the day-rates, expenses and discount formula set out in the agreed Pricing Schedule.

8.3 For T&M based work, the Supplier’s quotation in response to a RFQ from BT shall map resource to
be utilised for the Work to the Skills Framework for the Information Age (SFIA) skills categories
and levels, including day-rates contained in the Pricing Schedule and the quantity of resource to
be utilised for the Work.

8.4 For fixed price based work, the Supplier, on BT’s request shall provide adequate information as
to allow BT to validate the quoted price, to ensure that the price for such fixed price work is
fair and reasonable. The information that would be provided could include effort breakdown or a
level of price breakdown, rates applied, price for third party components e.g. hardware, third
party software, risk provisions etc. Any request for such information by BT shall be made prior to
the award of work to the Supplier. For the avoidance of doubt, BT is not entitled to request
information regarding Supplier’s internal cost structures and / or information related to the
Supplier’s margins or information that attempts to achieve such result.

8.5 For the Supplier to accept entirely the necessity of this Contract to deliver value for money
for BT whilst at the same time enabling a fair return to the Supplier. Supplier shall demonstrate
value for money and the Supplier shall work closely with BT prior to Work Package and or Purchase
Order award to develop an appropriate mechanism which may include one of the following:
Benchmarking, SLA, Performance Scorecard or Partnership Scorecard according to Contract Performance
Requirements, value for money model etc., and during the life of the Contract to report on
performance against the chosen methodology

9 NOT USED

10 PRICE SATISFACTION

10.1 Where any Work is undertaken by the Supplier on a non-competitive basis, the Supplier
undertakes to provide information in accordance with Appendix 1.

11 INTENTIONALLY DELETED

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IN CONFIDENCE

12 CONTINUOUS IMPROVEMENT

12.1 Maintenance and support contracts will target year on year price reductions through efficiency
gains. The Supplier shall demonstrate and detail how this will be achieved for the following
Financial Year 2 months prior to the beginning of the following Financial Year.

12.2 On an individual Work Package basis BT may require the Supplier to provide to BT a Performance
Indicator (PI) for the ensuing year on or before the first anniversary of the commencement of any
Contract, and on each successive anniversary for the duration of the Contract. The PI shall be a
stretching, but achievable objective that represents an improvement over the Performance Target.

For each successive year for the duration of the Contract following the first anniversary of the
commencement of the Contract, the Supplier’s actual achieved performance shall be calculated as an
average of such performance in each component eight quarters) and where such performance so
calculated exceeds the relevant Performance Target that Performance Target shall be amended to the
actual achieved level.

13 EXIT TRANSITION CO-OPERATION

13.1 If the Contract is terminated by BT pursuant to Clause 5 (Performance Monitoring) above, or
not renewed with the Supplier beyond the initial Term, and if required by BT, the Supplier shall
co-operate fully with BT and with any third party nominated by BT, at no additional cost to BT,
except for undisputed invoices, in facilitating the provision of Replacement Work. Such
co-operation shall include, without limitation:

13.1.1 the supply by the Supplier of such Supplier’s Background Information as is reasonably
necessary to enable Replacement Work to be provided in a similar manner to that in which Supplies
had or should have been provided by the Supplier, subject to the confidentiality provisions of the
Contract; and

13.1.2 the granting by the Supplier to BT or, at BT’s option, a third party, of a licence to use
such Supplier’s Background Information solely in relation to the provision of Replacement Work for
a period expiring five years after the date of termination (or part termination) of the Contract;
and

13.1.3 the undertaking by the Supplier of reasonable endeavours to procure for BT or BT’s nominated
contractor the grant or

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IN CONFIDENCE

transfer of all licences and permissions under third party Intellectual Property Rights which may
from time to time be reasonably necessary for the provision of Replacement Work to the extent that
such third party Intellectual Property Rights have been used in the provision of Supplies by the
Supplier.

13.2 For the purpose of this clause (Transition Co-operation) “Supplier’s Background Information”
shall mean all Information owned or controlled by the Supplier or companies in the same group (as
defined by s.53 Companies Act 1989) as the Supplier.

13.3 To ensure a smooth transition at the end of the Contract, BT requires the Supplier to maintain
Documentation relating to the processes and procedures used in the execution of the Contract for
the Work for the lifetime of the Contract.

13.4 For the avoidance of doubt, such Documentation shall be subject to the Condition titled
Intellectual Property of the Conditions of Contract schedule.

13.5 Where the Supplier is the gaining Supplier:

13.5.1 As part of any such transition, BT may require the gaining Supplier to act initially as the
Prime Contractor and take full contractual responsibility for provision of the Work, prior to the
losing Supplier being managed out.

13.5.2 The Supplier shall complete transition of the Work within 3 months of the commencement of
the Work

13.5.3 Where the Supplier is transitioning Work from an incumbent supplier (this could be BT or
another external supplier to BT), the Supplier shall detail the support requirements needed from
the incumbent supplier to complete the transition. This should include but not be limited to:
number and type of resource, period required, location, availability etc.

13.5.4 The gaining Supplier shall be responsible for the continuity of service and management of
any resultant transition when gaining new Work either from BT or an existing 3rd party Supplier.

13.5.5 Transition of new Work shall be at the gaining Supplier’s risk and expense.

13.5.6 The gaining Supplier will be required to provide a top level plan which shall address the
following areas:

- Key dates/timescales

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IN CONFIDENCE

- Documentation

- Sharing/release of information

13.6 Where the Supplier is the losing Supplier:

13.6.1 shall commit to working with BT’s gaining Supplier to ensure successful transition of Work
in the event of them not being retained as BT’s Supplier for a specific area of Work.

13.7 Any transition related costs shall be subject to audit and validation by BT.

13.8 The Supplier agrees to vacate BT’s premises within a reasonable period and deliver to BT those
BT assets in the Supplier’s custody.

13.9 The provisions of sub-clause 6.1. above shall survive the termination of the Contract.

14 EXIT COSTS

14.1 In some cases the Supplier may be required to transition Work to BT or another external
supplier to BT. Where the existing contractual arrangement for the Work allows or does not prohibit
exit charges, the Supplier shall include detailed exit costs and an exit strategy plan within their
quote for each Work Package.

15 ACCEPTANCE

15.1 In this Condition:

“Acceptance Test(s)” means formal testing to determine if the Supplies satisfy the criteria for
Acceptance for BT to Accept the Supplies or any part of them, including without limitation, any
First Repeat Test or Second Repeat Test as defined in this Condition.

“Certificate of Service” means a certificate issued by BT in respect of Supplies or any part of the
Supplies, which, although having failed to pass the Acceptance Tests, BT requires to be put into
commercial service. “Commercial Service” shall be construed accordingly.

15.2 The Supplier shall provide BT with written Acceptance Test methodology in respect of the
Supplies on or before [as agreed in Work Package and/or Purchase Order]. BT shall approve or reject
such methodology within 14 days of receipt. If rejected, the Supplier shall

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IN CONFIDENCE

amend the methodology as necessary until approved by BT (such approval not to be unreasonably
withheld).

15.3 Supplies shall not undergo any Acceptance Test until:

(a) Supplies have passed any required off-site tests;

(b) the Supplier can demonstrate to BT’s reasonable satisfaction following its own testing that the
Supplies should pass the Acceptance Tests;

(c) BT has approved the Acceptance Test methodology; and

(d) any required inter-working is achieved and combinations of hardware and software have been
fully integrated and proven as a system.

15.4 The Supplier shall give at least 14 days written notice to BT of Supplies being ready for
Acceptance Tests.

15.5 Acceptance Tests shall take place in the presence of BT’s nominated representative(s).

15.6 If Supplies pass the Acceptance Tests, BT shall issue to the Supplier an Acceptance
certificate, which shall, if Supplies are being tested severally, not constitute an admission that
Supplies have been completed in every respect. The Acceptance procedure shall be repeated for each
portion of the Supplies.

15.7 If any Supplies fail the Acceptance Test:

(a) BT shall notify the Supplier in writing accordingly within 10 days of completion of the tests,
stating the reasons for the failure; and

(b) the Supplier shall promptly make such alterations to Supplies as are necessary to pass repeat
Acceptance Tests within 10 days of such notice (“the First Repeat Test”); and

(c) if Supplies fail the First Repeat Test, the Supplier shall promptly make such further
alterations to Supplies as are necessary to pass a further repeat Acceptance Test (“the Second
Repeat Test”) within 10 days of notice of failure of the First Repeat Test.

15.8 If any Acceptance Test is not completed by the due date, or Supplies fail the Second Repeat
Test, BT may (at its option):

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IN CONFIDENCE

(a) bring Supplies into Commercial Service at any time and/or claim liquidated damages for delayed
Supplies as set forth in the Work Package; or

(b) terminate the Contract from the date specified by written notice to the Supplier.

15.9 If any Acceptance Test is not completed by the due date or Supplies fail any Acceptance Test,
BT shall, upon giving written notice to the Supplier, have access to Supplies for its own testing
and evaluation purposes but shall take reasonable care not to hinder the Supplier in achieving
Acceptance, although the Supplier shall be responsible for any delay.

15.10 If Supplies fail any Acceptance Test, BT may put them into Commercial Service and issue a
Certificate of Service, which shall include a list of remaining portions of Supplies and all
relevant deficiencies to be remedied by the Supplier as are then known to BT.

15.11 Supplies put into Commercial Service on any date:

(a) benefit from the provisions of the Condition headed ‘Warranty’ as if the period of such
warranty had commenced on such date and had been extended by the period between such date and
Acceptance of all Supplies; and

(b) shall be made accessible to the Supplier for remedial work to achieve Acceptance and be at the
Supplier’s risk.

15.12 During Commercial Service, the Supplier shall, if required by BT, and at the Supplier’s own
additional cost, work outside its normal working hours in order to remedy any deficiencies.

15.13 BT’s rights under this Condition are without prejudice to any other rights or remedies it may
have, and to any of the Supplier’s obligations.

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IN CONFIDENCE

SCHEDULE 6 APPENDIX 1 (PRICING)

1. IT SERVICES PRICING PRINCIPLES

The following principles shall be applied to prices quoted by the Supplier for IT Services provided
under the Contract. In order to demonstrate their compliance with these principles, the Supplier
will provide information to BT to support their quotation, as applicable.

1.1. COST TRANSPARENCY

The Supplier shall provide corporate level general financial information as follows:

1.1.1. Subject to the confidentiality provisions in this Contract the Supplier shall provide the
following information at a corporate level for benchmarking purposes. This shall be provided to the
extent of the publicly available information as published in Annual and quarterly financial
statements.

ELEMENTS

Revenues

Gross Profit

Sales & Marketing Expenses

General and Administrative Exp

Research & Development costs

Amortizations Operating Income

(Note : Transparency / ensuring an appropriate price for individual projects is covered by Section
2.2)

1.1.2. All day rates shall be based on the Supplier’s identified standardised Cost Recovery
Assumption.

For the avoidance of doubt, Cost Recovery Assumption is defined as the number of days assumed by
the Supplier that they will need to charge for the resource to fully recover the cost of the
resource, including pay, benefits, overheads and margin. The Cost Recovery Assumption makes
allowance for all leave entitlement, including annual leave, public holidays and casual leave, plus
any training and sick

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IN CONFIDENCE

absence, where the Supplier cannot charge the customer for the resource.

[***]

All T&M engagements shall use a common currency of Person-days of effort. Person-days of Effort
shall mean the total number of days required to successfully deliver the Work Package, irrespective
of the number of resource used, inclusive of any shift working or overtime.

1.2. VALUE FOR MONEY

For each proposal it presents the Supplier shall demonstrate the value of its offer to BT:

1.2.1. For fixed price (“FP”) based Work, BT may assess the value of the Supplier’s offer by
benchmarking the Supplier’s quotation to a comparable T&M based price, [***] with an expectation
that FP Work will be price beneficial to BT. In accordance with clause 8.4 in Schedule 6 the
Supplier will cooperate with BT in providing sufficient information for BT to assess the value of
the Supplier’s offer.

1.2.2. The Supplier shall co-operate with BT to provide world class pricing and value for money in
accordance with the Condition titled Best Price in Schedule 6 of the Contract;

1.2.3. [***]

1.3. 90:10 PRINCIPLES

All projects will maximise off shore resource to provide the most cost effective pricing and
explain the justification for on-shore resources at the time of, and as reflected in, the quote
submission or Work Package.

1.3.1. For time and materials (“T&M”) based Work, the Work shall be based on an assumption that
[***]% of the Supplier’s overall engagement on Work under the Contract, by resource numbers, shall
be performed offshore ([***]). Exceptions to the [***] principles may be agreed by the parties on a
case by case basis at the time of agreement of the applicable Service.

1.4. SHORT-TERM ONSHORE WORK

1.4.1. Where the Supplier cannot perform the work within the planned onshore resource allowance as
agreed between the parties in a Work Order due to unplanned exigencies or emergency requirements,
and required placement of resources for short period Onsite, [***]

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IN CONFIDENCE

1.4.2. The total cost for the onshore assignment shall not exceed the published onshore T&M rate of
the resource for the duration of the assignment.

1.4.3. The Supplier shall be responsible for air travel and associated visa or work permit expenses

1.4.4. Short-term shall be defined as less than 1 month. Beyond 1 month, the resource allocations
in the Work Order shall be modified through Change Control

1.5. All prices are to be in GB Pounds sterling and in line with
Schedule 12 
(Pricing)

1.6. YEAR ON YEAR COST REDUCTION

Maintenance and support contracts will target year on year price reductions through
efficiency gains.

1.7 [***]

2. PRICING MODELS

BT may request the Supplier to provide a quotation based on one or more of the pricing models
detailed below for any Work Package requirement.

The Supplier should provide a quote on the basis of the pricing model identified by BT, but may
offer an alternative model for consideration by BT in addition to that requested by BT.

2.1. TIME AND MATERIALS BASED PRICING

2.1.1. The Supplier shall provide a rate card based on a standard definition of roles, mapped to
the Skills for the Information Age (SFIA) matrix in terms of Category, Sub-Category, Skill and
Level. The rate card shall detail day rates for all roles that may be provided by the Supplier
under the terms of the Contract. The rate card shall be provided in the format shown in Table 1
below.

(For information on the Skills Framework for the Information Age
(SFIA)

matrix please refer to the SFIA web-site at: http://www.SFIA.org.uk).

2.1.2. For T&M based pricing the Supplier’s quotation shall use the rates specified in Supplier’s
Contract T&M rate card set out in Table 1 below. Such rates shall be the maximum rates that the
Supplier may charge for T&M based Work under the Contract for the first Annual Period.

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IN CONFIDENCE

2.1.2.1. For Go To Market opportunities, the T&M rate card shall be regarded as indicative and the
actual rates shall be agreed on an opportunity basis.

2.1.3. For individual T&M based quotations for work packages defined by BT, the Supplier shall:

2.1.3.1. provide a maximum (“Capped”) price for complete performance of the Work as defined in the
Work Package, excluding Change Control.

2.1.3.2. provide price build information to enable maximum price calculations for individual work
packages; such information shall include the resource profile and cost for the Work, estimated
business expenses, infrastructure charges (if applicable) and any specific chargeable items not
included elsewhere;

2.1.3.3. provide pricing information in a standard T&M pricing template provided by BT;

2.1.3.4. provide pricing that ensure the overall engagement conforms to 
[***] principles; subject to 1.3.

2.1.3.5. Provide a statement of the level of risk and flexibility, in percentage terms, that has
been built into the Maximum price for the Work.

2.1.4. T&M based Work shall be charged only for the number of Person-days of Effort used in
performance of the Work up to the maximum agreed Person-days of Effort for the Work Package. BT
shall pay no more for the Work than the Capped Price estimated by the Supplier. Any change to the
Capped Price for the Work shall be subject to review and prior authorisation by BT’s Commercial
Contact via change control.

2.1.5. All T&M rates to be exclusive of VAT and Business Travel and Expenses, [***]

2.1.5.1. [***]

2.1.6. All day rates shall be based on the principle of a professional working day, assuming a
normal 8 hour working day;

2.1.6.1. [***]

2.1.7. For the avoidance of doubt, Business Travel and Expenses does not include travel to and from
the normal place of work;

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IN CONFIDENCE

2.1.8. All Business Travel and Expenses shall be calculated in accordance with BT Policy for BT
Business Travel and Expenses attached at Appendix 1;

2.1.9. Any onshore assignments for offshore resource of more than 3 months may be charged at
onshore rates. [***]

2.1.10. The Supplier should clearly demonstrate how BT will benefit from any additional efficiency
which is to be achieved, such as any economies of scale benefits that can be accrued from increase
in volume of Work and resource provided, or revised scope of work.

2.1.11. Any T&M engagement is based on the team profile agreed with the BT Project Manager at the
commencement of the Work. Unless the resource team had resource nominated as Key Personnel, the
Supplier shall be responsible for maintaining the agreed team profile without increase cost to BT
for the duration of the Work irrespective of any grade increase of the individuals providing the
Work. In the event of renewal of the Work Package, no increase in grade of the roles within the
team profile shall be permitted without prior agreement of the BT Project Manager.

2.1.12. BT shall expect the supplier to provide resource onshore for any hot housing associated
with a 90 day development cycle. Such resource to be deployed in accordance with the Short-term
Onshore Work principles [***].

2.1.13. In the event that the hothouse goes beyond [***] as a result of the Supplier’s inability to
deliver BT’s requirements BT shall not be charged for the additional time [***].

2.1.14. In addition to this, the Air fare expenses and initial travel to Hot house location may be
charged as expenses up to a maximum cap of [***] per person. Any higher amounts if incurred shall
be charged with prior approval from BT.

2.2. FIXED PRICE

Where the Supplier provides a Fixed Price (“FP”) quotation for a Work Package, the following shall
apply:

2.2.1. For multi-year FP engagements, payments shall be made monthly in arrears;

2.2.2. For short-term FP engagements, payments shall be made in arrears against agreed deliverables;

2.2.3. All prices are to be fixed in Pounds sterling, and in line with
Schedule 12 (Pricing)

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IN CONFIDENCE

2.2.4. Where the FP proposal covers a multi-year engagement, each price shall be detailed as shown
in Fig. 1

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	TOTAL
	FP	 	Q1	 	Q2	 	Q3	 	Q4	 	P.A.
	YEAR 1
	 	L	 	L	 	L	 	L	 	L
	YEAR 2
	 	L	 	L	 	L	 	L	 	L
	YEAR 3
	 	L	 	L	 	L	 	L	 	L
	TOTAL
	 	 	 	 	 	 	 	 	 	 

2.2.5. Any items or services not included in the Fixed Price must be clearly identified, and
pricing information detailed separately.

2.2.6. The Supplier shall provide sufficient data with each FP proposal for benchmarking purposes,
to demonstrate adherence to the pricing principles defined in section 1 of this Schedule. Such
information shall include:

2.2.6.1.1. total effort (in number of Person-days of Effort)

2.2.6.1.2. resource profile of team (in terms of numbers and roles)

2.2.6.1.3. risk/contingency assumptions included within the total number of days
effort

2.2.6.1.4. offshore:onshore ratio of resource

2.2.6.1.5. Project Plan, Milestones, quality gates and Acceptance Criteria

2.2.6.1.6. A price breakdown including the following as applicable:

- Resource element

- Non-resource element

- Infrastructure element

- Risk margin

- Other elements

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IN CONFIDENCE

Table 1. [***]

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COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

BT POLICY FOR BT BUSINESS TRAVEL AND EXPENSES

GUIDELINES FOR CONTRACTORS PERSONNEL

The provisions of this policy and any information relating to it, e.g. rates and charges, are
strictly confidential and subject to the confidentiality conditions of the Contract.

1. TRAVEL

The cost effectiveness and appropriateness of making the journey by air, sea, rail, or road should
be considered.

Air

For journeys by air, STANDARD/ECONOMY CLASS SHOULD BE USED.

For journeys with carriers in Africa and for travel within Central and South America, travel should
be first class where available.

The policy above sets out the class of travel to be used. Exceptionally where it is considered that
a higher class of travel is appropriate, for example where it is operationally essential and the
business need determines it is cost effective, this may be authorised by the BT Project Manager.

Rail & Ferry

For journeys by rail, STANDARD CLASS should normally be used. Exceptionally on ‘InterCity’ routes
where a journey is being made at peak travelling time and is of at least two hours duration for
each individual journey, the BT Project Manager may authorise first class travel in advance if it
will provide significantly greater privacy and quiet for people working on the train.

First Class travel may also be authorised when:

- an overnight Sleeper is the most cost effective mode of transport and is as an alternative to an
overnight stay

- upgrading during the journey is appropriate e.g. during transport difficulties, because of
changes in travel plans and / or business needs or when standard class accommodation is full.
Reasonable judgement should be made at the time

- special tickets are available which are at the same price or cheaper than standard class.

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

- where the two hour journey criterion is not met but a person is joining a BT colleague, who is
authorised to travel first class, to work on the train.

The cost of necessary seat reservations will be reimbursed.

For ferry travel advantage should be taken of multiple tickets where they are available.

Road

The shortest most practical route must be used for all journeys. Deviations from the route to pick
up or drop off authorised passengers may be claimed. In addition to the appropriate rate of
mileage, garaging, parking fees and tolls will be reimbursed. Receipts should be obtained wherever
possible. Driving and parking fines and penalties will not be reimbursed.

Mileage Rates

Mileage may only be claimed for travel in connection with BT business specific to the Contract.
[***]

Exceptionally, and only with prior line manager authorisation, higher rate mileage may be claimed
for short journeys of less than 30 miles return. In these instances the following mileage rates
will apply:

[***]

Hire Cars

Hire cars should be used only in connection with BT business specific to the Contract. Vehicles are
not to be used for private purposes. However incidental private use is allowed e.g. to obtain a
meal whilst working away from home. The business mileage fuel costs and hire charges incurred will
be reimbursed.

Generally only vehicles up to 1.4 litres capacity should normally be hired. Vehicles with a greater
capacity may only be hired where a justified business need is identified e.g. there are three or
more passengers or significant luggage or equipment is to be carried or a particularly long
motorway journey is involved.

Taxis

Taxis should only be used exceptionally, where due to the time of travel, nature of journey,
personal safety considerations or the carriage of heavy luggage, public transport does not provide
a reasonable option. To avoid surcharges and waiting time, taxis should not normally be pre-booked.
Receipts should be obtained in all instances.

2. OVERNIGHT ACCOMMODATION

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

The actual, reasonable receipted costs of hotel accommodation, breakfast and evening meal (table
d’hote, hotel restaurant or equivalent) may be claimed. Personal expenditure such as bar bills,
videos and newspapers will not be reimbursed.

For longer term stays, consideration should be given to more cost effective arrangements e.g.
rented accommodation. In such cases, the principle of reimbursement of reasonable expenditure
applies. Reimbursement may cover costs such as rent, council tax, utility charges and appropriate
meals out.

3. OTHER EXPENSES

All other expenses including but not limited to the purchase of equipment or software, hospitality
expenditure or any form of expenditure not directly incurred by the contractor must be claimed
using the appropriate BT internal process.

4. AUDITING OF EXPENSES

The Supplier shall make available their full reconciliated monthly expense statements within 8
weeks of the end of the month in which such expenses have been incurred.

Evidence of expenses incurred for all amounts, mandatory for greater than L5, shall be made
available for BT’s inspection.

IN CONFIDENCE

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COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

SCHEDULE 6 APPENDIX 2 WORK PACKAGE TEMPLATE

Contains Guidance notes on putting together a Work Package. The sections highlighted pink are
mandatory for completion.

CONTRACT NO: [                    ]

SUPPLIER QUOTATION REFERENCE: [                    ]

[TITLE] (the “PROJECT”)

1. DEFINITIONS

[Please insert here any additional definitions used for the purposes of the Work Package. Those
definitions set out in the Contract shall continue to apply.]

2. PROJECT BACKGROUND

[Provide a brief overview of the Project. This enables someone unfamiliar with the engagement to
understand the context]

3. DESCRIPTION AND SCOPE OF SERVICES

3.1 TO BE COMPLETED BY BT [REFER TO STATEMENT OF REQUIREMENTS DOCUMENT IF PROVIDED SEPARATELY]

[Provide here full details of the Services (as that term is defined in the Contract) to be
performed by the Supplier.

The Services must be described in enough detail so that someone unfamiliar with the Project could
understand what both parties’ obligations are.]

3.1.1 HOURS OF SERVICE

[BT should identify the Hours of Service including any week-end or Bank Holiday requirements
(Indian and UK).]

3.1.2 SHIFT PATTERNS

[Shift patterns to be detailed as appropriate.

The BT Project team should include a high level process flowchart as appropriate.]

3.2 TO BE COMPLETED BY THE SUPPLIER AS PART OF THEIR RESPONSE.

3.2.1 UTILISATION OF SUPPLIER’S BACKGROUND INFORMATION

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

[Supplier must set out details of the Supplier’s Background Information that the Supplier believes
it will utilise during the performance of the Services (and production of the
Services/Deliverables) under this Work Package. In the event that the Supplier becomes aware,
during the course of the Work Package, that additional pieces of Supplier’s Background Information
will be used in the provision of the Services/Deliverables the Supplier must draw these to BT’s
attention upon delivery of the Deliverables in question.]

3.2.2 TRANSFER OF DATA

In the event that the Services include cross-border data flows. Please note that:

(i) The Supplier must advise BT’s Commercial Contact in writing, in advance, of the manner by which
the Supplier intends to store or process BT Personal Data (Condition                                         );

(ii) This is particularly important if any of the BT Personal Data is to be exported outside the
European Economic Area (Condition
                                        ), as defined in the Contract.                                         
must notify BT in advance, in the relevant Work Package, of [Suppliers] intention to export BT
Personal Data outside the European Economic Area;

(iii) BT must give its prior written consent to the exportation of BT Personal Data (i.e. any BT
data, not just sensitive personal data) outside the European Economic Area (Condition
                                                            )). Such consent must be confirmed in writing by BT prior to commencement of
any Services through the execution of Appendix A as part of this Work Package.

IMPORTANT NOTE:

Please note that in the event of cross-border data flows the parties shall need to sign up to and
agree to be bound by the EU Model Clauses at Schedule 3 to the Contract

[If this Work Package is likely to include Services that result in cross-border data flows please
contact Group Legal Procurement Team for guidance.]

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

4. DELIVERABLES AND TRAINING IN DELIVERABLES

4.1 SUPPLIER DELIVERABLES

[Provide full details of the Services (as that term is defined in the Contract) (if any) and
Software (as that term is defined in the Contract) (if any) to be delivered by the Supplier as part
of the Services. If there are no deliverables please state “No Deliverables/Software will be
provided by the Supplier under this Work Package”. It should be specified in the Work Package
whether the Supplier is primarily responsible for Deliverable and where BT is primarily
responsible, e.g. where the Supplier’s role has been to “assist” or “support” BT.]

[If training in the Deliverable(s) is to be performed by the Supplier as part of the Services, then
detail it here. If not applicable put “No training in the Deliverables will be supplied by the
Supplier under this Work Package.”]

4.2 BT DELIVERABLES

[Provide full details of the deliverables (if any) and software (if any) to be delivered by BT as
part of the Services that the Supplier’s Services are dependent upon. Also include details of BT
and/or third party deliverables and software in Section 15 (BT Obligations).]

5. BT PROVIDED ITEMS

[Please insert details of any Equipment (as such term is defined in the Contract) that the Supplier
is receiving from BT (including BT Supplied Items), documentation e.g. process documents, customer
data, scripts etc.]

[Please also insert details of any Third party software that the Supplier is receiving from BT.]

[In addition please include details of any Work Package specific training that BT will provide the
Supplier including duration, people numbers etc.]

6. SUPPLIER PROVIDED EQUIPMENT

[Please insert details of any Equipment (as defined in the Contract) the Supplier is providing to
BT]

7. MAINTENANCE AND SUPPORT

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

[If Maintenance and support of Deliverables is to be performed by the Supplier as part of the
Services then detail here, if not applicable then put, “No Maintenance or Support for Deliverables
created under this Work Package is provided by the Supplier under this Work Package.”]

8. BT SYSTEMS

[You will need to ensure that BT has adequate LEAD TIME for it to provide all necessary
Authorisation and related written consents regarding connection to BT Systems, prior to Project
commencement. This is likely to take at least a week. Check with BT Project Manager on the security
procedure to be followed to obtain Authorisation and continue to have Access. Include the BT
Security Contact in these discussions.]

The Supplier must at all times comply with the BT Security Policy in force at the time of the Work
Package. BT must promptly supply this to the Supplier. The Supplier may decline to proceed with a
Project if compliance with the BT Security Policy is, in the Supplier’s opinion, not practical or
feasible.

(Please note that the BT Security Policy may require the parties to execute an Interconnect
Agreement prior to connecting to BT Systems.)

The Supplier must obtain prior written consent from the BT Security Contact prior to connecting any
equipment not supplied by BT to any BT LAN port, e.g. when connecting Supplier laptops to a BT LAN
port.

The Supplier must NOT commence work until Authorisation is granted. If you have any queries
regarding the process to be followed to obtain Authorisation please contact the Group Legal
Procurement Team.

Include in the Work Package a full list of BT Systems that will be used by Contract Personnel (ie
[Supplier] personnel and subcontractors) during the Project. Please note that this must include ANY
connection to BT Systems, for example in order to print or receive e-mail. If you are unclear about
what should be included in the list of BT Systems please raise this with the BT Security Contact
and obtain advice in writing.

9. NETWORK AND IT REQUIREMENTS

[Include any IT requirements including any bandwidth requirements and specific disaster
requirements.]

10. TIME TABLE

[If the Services are to be provided within a mutually agreed time then detail the timetable for the
performance of the Services (and, if applicable, dates for delivery of Deliverables). There should
be a start date and there may or may not be a target completion date.

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

Where appropriate a formal project plan should be developed with the Supplier and appropriate
remedies agreed for failure to meet agreed time-scales.]

11. SITE

Services relating to this Work Package shall be carried out at the following site(s):

BT or Supplier to insert details of where the Supplier will perform the Services and if applicable
deliver any Deliverables.

[This may be left blank for the Supplier to present its recommendations but must be completed prior
to final agreement and placement of the Work Package].

12. ACCEPTANCE

[Acceptance procedures should be inserted, and the process the parties will undertake to determine
whether the criteria have been met if they have been agreed in advance of work commencing under the
Work Package.

[Acceptance criteria and procedures need to be specified where the Supplier will receive
deliverables from third parties and/or BT.]

13. PERSONNEL

13.1 SKILL SET REQUIREMENTS

[BT should identify the specific skills required to perform the Services including any formal
qualifications and / or accreditation requirements.]

13.2 CONTACT DETAILS

BT’s Commercial Contact will be [                    ]

BT’s Programme Lead/point of escalation will be [                    ] (if applicable)

BT Project Manager will be [                    ]

BT’s Security Contact will be [                    ]

The Supplier’s Work Package Contact will be [                    ]

The Supplier’s Programme Lead/point of escalation will be [                    ] (if applicable)

13.3 KEY PERSONNEL

IN CONFIDENCE

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COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

The Personnel identified below are key to the Services required and are classified as Key Personnel
(to be agreed between the Parties) as described in the Contract.

- BT Key Personnel

- [List]

- Supplier Key Personnel

- [List]

14. REPORTING

[Detail here the specific reporting requirements e.g. timescales, deliverables, SLA/KPI’s etc., and
the frequency at which the Work Package representatives are to meet including any project
management arrangements.]

15. CHARGES

[Detail here the pricing matrix and methodology against which the Supplier is required to submit
prices for Services and how this is calculated. Include details of what is included in the Price
and anything that is specifically excluded. Note that all costs exclude VAT.]

16. BT OBLIGATIONS

[Specify any particular obligations on BT’s part i.e. what the Supplier is dependent upon. Include
details of BT and/or third party deliverables and software.]

17. RISKS AND ASSUMPTIONS

[List all descriptions and conditions which may have a material impact upon the Supplier’s ability
to meet its obligations.]

18. QUALITY STANDARDS & ASSURANCE, AND CODES OF PRACTICE

[BT to include any Work Package specific quality standards, codes of practice etc.]

19. PERFORMANCE MEASUREMENT

[Work Package specific Service Levels (SLA’s) and Key Performance Indicators (KPI’s) to be
identified here. Service Credits shall normally be applicable to KPI’s. Consider “risk and reward”
schemes as appropriate to drive performance.]

20. ADDITIONAL

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

[Please insert here any additional points that are not covered above including any additional
variations to the Contract.]

21. WORK PACKAGE PRICE

[ALL PRICING INFORMATION TO BE PRESENTED IN LINE WITH THE CONTRACT PRICING SCHEDULE, UNLESS
OTHERWISE AGREED]

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

SCHEDULE 6 APPENDIX 2 WORK PACKAGE TEMPLATE

APPENDIX A [ONLY REQUIRED WHERE PERSONAL DATA BEING TRANSFERRED OUTSIDE THE EEA

Under the terms of the Contract and the Work Package hereof, the Supplier has requested BT’s
consent to [subcontracting/offshoring] certain services to

[                    ] who are located at [                    ]. The parties have worked together to ensure that data
protection and IT Security are acceptable before commencing.

The parties have, in relation to various data protection and security matters concerning the
sub-contracting/offshoring of these services, reached agreement and now wish to confirm the terms
on which BT provides its consent.

AND IT IS AGREED AS FOLLOWS:

WITH EFFECT FROM EFFECTIVE DATE OF THE WORK PACKAGE HEREOF, THE FOLLOWING TERMS AND CONDITIONS
SHALL FORM A BINDING PART OF THE WORK PACKAGE AND COMPLEMENT CLAUSE 3.2 ABOVE.

a) Consent

BT hereby consents under Clause 3.2 of the Work Package [Title of the Project] above to the
services as described in [Appendix___/Clause 4 above] (“the Work Package Services) to this Work
Package and provided under the ContracT being subcontracted/offshored to [                    ] and located
in [India].

The parties acknowledge and agree that certain personal data which forms part of the personal data
described in Condition with the heading “Protection of Personal Data” of the Contract is processed
in connection with these Work Package Services (“Data”) and will be transferred to [                    ]
located outside the EEA. Notwithstanding that the Data will remain stored and hosted in the United
Kingdom, the parties further acknowledge and agree that the Eighth Data Protection Principle under
the Data Protection Act 1998 is relevant to the processing of the Data. Further the parties have
agreed to be bound by the terms of the Commission Decision of 27th December 2001 on standard
contractual clauses for the transfer of personal data to processors established in third countries,
under Directive 95/46/EC as evidenced in Schedule 3 of the Contract. These standard contractual
clauses have been replicated and signed by both parties and form Annex 1 to this Work Package. BT
reserves the right to substitute terms and conditions relating to the transfer of personal data to
processors established outside of the European Economic Area if, and by agreement of the parties,
(such agreement not to be unreasonably withheld or delayed), such terms are commercially more
acceptable to the parties and provide the same level of protection for personal data.

B) OBLIGATIONS OF THE SUPPLIER

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

The Supplier acknowledges that BT is the data controller of the Data for the purposes of the Data
Protection Legislation.

The provisions relating to confidentiality in Condition [                    ] of the Contract shall apply
in relation to the Supplier’s processing of the Data. In particular, the Data shall not without the
prior written consent of BT, be disclosed or transferred to any person other than to [                    
] or their personnel who have a valid reason for viewing or holding the Data.

The Supplier undertakes to procure that all such personnel in [India] who will be viewing or who
will have access to the Data in the course of providing services to BT will enter into a legally
binding individual confidentiality declaration with the Supplier before commencing work in relation
to the services.

Prior to personnel being given access to Data, the Supplier will provide appropriate training to
all personnel who will be dealing with or processing Data in relation to the relevant obligations
under the Data Protection Legislation and security and confidentiality procedures including any
security and confidentiality procedures reasonably requested by BT for the protection of Data and
will provide refresher training when reasonably necessary.

C) DATA PROTECTION PROVISIONS

i. BT, as the data controller for the purposes of the Data Protection Act, taking into account the
contractual obligations imposed on the Supplier by the Contract and this Work Package Agreement,
the technical and organisational security measures which are in place and the other circumstances
relating to the Work Package Services confirms that it considers that an adequate level of
protection for the Data and for the rights of data subjects is in place.

ii. The Supplier agrees to ensure that all such technical and organisational security measures as
set out in Annex [B] are maintained throughout the duration of the term of the Contract and Work
Package Agreement except as such arrangements are varied by agreement between the Parties.
Accordingly, the Parties agree that any transfer of Data will be compliant with Data Protection
Act.

iii. BT may suspend or terminate its consent and this Work Package for a serious breach or serious
non-compliance with Data Protection legislation in connection with this consent. If either Party
becomes aware of any breach of or non-compliance with the Data Protection legislation in connection
with the Sub-Contracted Services that Party shall promptly inform the other Party and the Parties
shall, as soon as reasonably practicable, conduct a review of the matter and implement any changes
in processes or procedures established by the review

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SUBJECT TO CONTRACT

SCHEDULE 6 APPENDIX 2 WORK PACKAGE TEMPLATE

APPENDIX A

ANNEX 1

EU MODEL CLAUSES

PART 1

MANDATORY: TO BE COMPLETED AND SIGNED BY THE PARTIES

DATA EXPORTER

The data exporter is British Telecommunications plc

DATA IMPORTER

The data importer is                                                             

DATA SUBJECTS

The personal data transferred concern the following categories of data subjects:

CATEGORIES OF DATA

The personal data transferred concern the following categories of data:

(ARROW)

SPECIAL CATEGORIES OF DATA (IF APPROPRIATE)

No data classified as Sensitive Personal Data will be processed outside the EEA.

PROCESSING OPERATIONS

The personal data transferred will be subject to the following basic processing activities:

	 	 	 	 	 	 	 	 	 	 	 
	DATA EXPORTER	 	 	 	DATA IMPORTER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Authorised signature	 	 	 	Authorised signature	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	DATE:

	 	 	 	 	 	DATE:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SUBJECT TO CONTRACT

PART 2

MANDATORY: TO BE COMPLETED AND SIGNED BY THE PARTIES.

Description of the technical and organisational security measures implemented by the data importer
in accordance with Clauses 4(d) and 5(c) (Schedule 3):

Generic measures for each service line in Annex 1 Part 1 [1 through 6]

	 	 	 	 	 	 	 	 	 	 	 
	Operational Organisational Measures	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Technical and Security Measures	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	DATA EXPORTER	 	 	 	DATA IMPORTER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Authorised signature	 	 	 	Authorised signature	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	DATE:

	 	 	 	 	 	DATE:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

IN CONFIDENCE

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ACT; [***] DENOTES OMISSIONS.

SCHEDULE 7 — INTENTIONALLY LEFT BLANK

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ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

SCHEDULE 8 — CHANGE CONTROL PROCEDURE

1. PRINCIPLES

(a) If at any time either party sees a need to change the Services that party may request or
recommend such change only in accordance with the Change Control Procedure.

(b) Neither BT nor the Supplier shall unreasonably withhold its agreement to any change provided
that BT shall not be obliged to agree to any change increasing the charges or requiring BT to incur
material expenditure.

(c) Until such time as a change is made in accordance with the Change Control Procedure, the
Supplier shall, unless otherwise agreed in writing, continue to supply the Services as if the
request or recommendation had not been made.

(d) Any discussions which may take place between BT and the Supplier in connection with a request
or recommendation before the authorisation of a resultant change to the Services shall be without
prejudice to the rights of either party.

(e) Any work undertaken by the Supplier, its sub-contractors or agents which has not been
authorised in advance by a change to the Services and which has not been otherwise agreed in
accordance with the provision of paragraph 1(c) shall be undertaken entirely at the expense and
liability of the Supplier.

2. PROCEDURES

(a) Discussion between BT and the Supplier concerning a change to the Services shall result in any
one of the following:

(i) a request to change the Services by BT; or

(ii) no further action being taken;

(iii) a recommendation to change the Services by the Supplier.

(b) Where a written request for an amendment is received from BT, the Supplier shall immediately on
receipt issue a written acknowledgement to BT and, unless otherwise agreed, submit a Change Control
Note (CCN) to BT within three weeks of the date of the request.

(c) A recommendation to amend by the Supplier shall be submitted as a CCN direct to BT at the time
of such recommendation.

(d) Each CCN shall contain:

(i) the title of the change;

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IN CONFIDENCE

(ii) the originator and date of the request or recommendation for the
change;

(iii) the reason for the change;

(iv) full details of the change including any specifications;

(v) the price, if any, of the change;

(vi) a timetable for implementation together with any proposals for acceptance of the change;

(vii) a schedule of payments if appropriate;

(viii) details of the likely impact, if any, of the change on other aspects of the Services
including but not limited to:

(A) the term of the Contract;

(B) the personnel to be provided;

(C) the charges;

(D) the payment profile;

(E) the documentation to be provided;

(F) the training to be provided;

(G) service levels;

(H) working arrangements; and

(I) other contractual issues;

(ix) the date of expiry of validity of the CCN; and

(x) provision for signature by BT and the Supplier.

(e) For each CCN submitted BT shall, within the period of the validity of the CCN:

(i) allocate a sequential number to the CCN;

(ii) evaluate the CCN and, as appropriate:

(A) request further information;

(B) approve the CCN; or

(C) notify the Supplier of the rejection of the CCN; and

Page 117 of 126

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

(iii) arrange for two copies of an approved CCN to be signed by or on behalf of BT and the
Supplier.

(f) A CCN signed by both parties shall constitute an amendment to this Contract pursuant to
condition 22 headed “Variations”.

Page 118 of 126

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

SCHEDULE 9 — CONFIDENTIALITY AGREEMENT

IMPORTANT NOTE: This form must be completed by all non-BT people who undertake Work for BT before
they have access to BT information or BT computer systems.

You may, as a supplier or as an employee or subcontractor of a supplier to BT, have access to BT
information or BT computer systems.

BT requires you:

- to keep all BT information (whether or not it is marked “NOT TO BE SHOWN OUTSIDE BT”, “INTERNAL”,
“IN CONFIDENCE”, or “IN STRICTEST CONFIDENCE”) confidential and not to disclose it, unless you
first have BT’s written permission;

- if you have access to BT customer or personal information, to comply with the provisions of the
Data Protection Act 1998;

- to access BT computer systems and BT electronic information only if you have been authorised to
do so. Unauthorised access may result in your being prosecuted under the Computer Misuse Act 1990;

- to access and use BT computer systems and BT information only as is necessary to do your job
properly;

- to read and understand BT Security Requirement and Security Policy;

- to comply with other BT instructions and security policies that may be notified from time to
time; and

- not to connect any equipment not supplied by BT to any BT LAN port.

If you are in any doubt as to these requirements or the policies of BT Group Security, further
advice and information can be obtained from your BT contact.

PERSONAL DECLARATION

I have read and understand the above requirements and agree to be bound by them.

Signed Date:

 

Print full name and home address:

Name:

Address:

Page 119 of 126

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

SCHEDULE 10 — GENERIC STANDARDS

The latest issues are attached as follows:

- BT Generic Standard 11 Safety Management Issue 7.2

- BT Generic Standard 13 Environmental Impact Issue 9

- BT Generic Standard 18 Sourcing with Human Dignity Standard Issue 2

1 CONTRACT RESPONSE

To each attached Generic Standard the Supplier is required to make a declaration of “Compliant”,
“Partially compliant” or “Non-compliant” as appropriate.

This declaration shall be followed by a concise supporting statement describing the way in which
the Supplier complies, or why the Supplier does not and identifying methods and tools used.

Compliance with the attached Generic Standards does not confer immunity from legal obligations. The
Supplier should note that BT reserves the right to validate the information provided.

2 TABLE OF COMPLIANCE

	 	 	 	 	 	 	 
	 	 	Compliant	 	Partially Compliant	 	Non-compliant
	Generic Standard 11

	 	(X)	 	 	 	 
	Generic Standard 13

	 	(X)	 	 	 	 
	Generic Standard 18

	 	 	 	(X)	 	 

3 BT GENERIC STANDARD 11 FOR COMPLETION

4 BT GENERIC STANDARDS 13 AND 18 FOR ACCESS AND COMPLETION

On the Contract Commencement date the Supplier shall access the following URL’s and complete the
following two questionnaires:

https://secure.selling2bt.bt.com/ext/html/gs13/

http://www.selling2bt.com/html/working/humandignity/question.asp

Page 120 of 126

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES
ACT; [***] DENOTES OMISSIONS.

IN CONFIDENCE

The Supplier must complete the questionnaires within a two month time period and ensure that the
file is emailed as the instructions indicate.

Page 121 of 126

 

 

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

AMENDMENT number 1 dated 1st February 2008

TO

CONTRACT number 678650 (‘Contract’)

	 	 	 
	Between

	 	(1) British Telecommunications plc (‘BT’) and
	 

	 	(2) Virtusa UK Limited (‘the Consultant’)

BT and the Consultant agree that:

	•	 	the Contract is amended as set out below;

	•	 	the value of the Contract remains unchanged and

	•	 	all other Contract provisions remain unchanged.

Amendment details:

Payment Terms Change from [***] days to [***] days.

Condition 55.2 of contract 678650 will be superseded by the following:

55.2 BT will pay due Invoices submitted in accordance with this condition within [***] days
of the later of either date of the invoice or the date upon which the invoice (including
electronic copy of the invoices) is received by BT, All payments shall be made in pounds
sterling.

	 	 	 
	SIGNED for and on behalf of BT

	 	SIGNED for and on behalf of the Supplier
	 
	 	 
	Signed /s/ Liam Callaway

	 	Signed /s/ Paul Greenan
	 
	 	 
	Name Liam Callaway

	 	Name Paul Greenan
	 
	 	 
	Position Buyer — IT Services

	 	Position: Financial Controller

 

 

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

AMENDMENT number 2 dated 27th March 2008

TO

CONTRACT number 678650 (‘Contract’)

	 	 	 
	Between

	 	(1) British Telecommunications plc (‘BT’) and
	 

	 	(2) Virtusa UK Limited (‘the Consultant’)

BT and the Consultant agree that:

	•	 	the Contract is amended as set out below; and

	•	 	the estimated value of the Contract remains unchanged; and

	•	 	all other Contract provisions remain unchanged.

Amendment details:

Discount Structures: Minimums; Targets

Whereas; BT and Supplier have entered into a Work Package, a new Schedule has been agreed to
Contract 678650 “BT Training TM SOW ver2008-02-14v.7” herein after referred to as Schedule
11 pursuant to which the Supplier will or has provided resources to undergo training, on
delivery processes, domain and technologies of relevance to BT through 31 March 2008;

	 	1.	 	With respect to the Schedule 11, the parties hereby agree to the following:

	 	a.	 	[***].
	 
	 	b.	 	[***] under and in accordance with Schedule 6, Appendix 1 (Pricing)
condition 1.7 Discount Structures; Minimums, Targets of the terms of Contract
678650, during the period of 1 April 2007 through 31 March 2008.
	 
	 	c.	 	[***].

	 	2.	 	Schedules to this Amendment

	 	a.	 	Schedule 11 — BT Training TM SOW ver2008-02-14v.7

	 	3.	 	Capitalized terms used herein but not defined herein shall have the meanings set forth
in the Contract.
	 
	 	4.	 	Except as other wise modified herein, all terms of the Contract remain in full force
and effect.
	 
	 	5.	 	The parties have executed this Amendment by their authorized signatories as of the date
first written above.

 

 

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

	 	 	 
	SIGNED for and on behalf of BT

	 	SIGNED for and on behalf of the Supplier
	 
	 	 
	Signed /s/ Abbi Hewitt

	 	Signed /s/ Paul Greenan
	 
	 	 
	Name Abbi Hewitt

	 	Name Paul Greenan
	 
	 	 
	Position Buyer

	 	Position Financial Controller

 

 

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

IN CONFIDENCE

AMENDMENT NO. 03 TO CONTRACT #678650

Whereas; British Telecommunications plc (registered in England and Wales under Company Number:
1800000) whose registered office is 81 Newgate Street, London, EC1A 7AJ (“BT”) and Virtusa
UK Limited (registered in England under Company Number 05640127 whose registered office is 1
Callaghan Square Cardiff CF10 5BT (“the Supplier”) entered into a Contract for the
Provision of IT Services to IT dated as of 29 March 2007 No. 678650 (the “Contract”);

Whereas; BT and Supplier now seek to amend the Contract as further set forth herein;

NOW THEREFORE, for valuable consideration, the sufficiency of which is hereby acknowledged and
confirmed by both parties hereto, the parties agree as follows:

	 	1.	 	Capitalized terms used herein but not defined herein shall have the meanings set forth
in the Contract.
	 
	 	2.	 	Additional Definitions:
For purposes of this Amendment, “Qualifying Business” shall mean: with respect
to the first, second and third Annual Periods of the Amendment Term, [***] of all
Eligible Annual Fees with respect to such period, and for the fourth Annual Period of
the Amendment Term, [***] of all Eligible Annual Fees. For the avoidance of doubt,
spend with Supplier under the terms herein that is contracted through a third party on
behalf of BT shall contribute to “Qualifying Business”.
	 
	 	3.	 	Term. The term of this Amendment shall begin on April 1, 2008 (“Effective
Date”) and shall continue until 31 March 2012 (the “Amendment Term”).
	 
	 	4.	 	Qualifying Business Fee Commitment. 

	 	a.	 	BT intends to engage Supplier to perform Qualifying Business under Work
Packages that are entered into from time to time by the parties for services to be
performed during the Amendment Term. In exchange for BT’s commitment hereunder to
spend a minimum of [***] in service fees (excluding taxes and other pass through
expenses like travel and other reimbursable expenses) related to Qualifying
Business under the terms herein during the Amendment Term, Supplier is willing to
extend certain discounts on service fees billed for Qualifying Business and make
certain other discount concessions to the Contract as further set forth herein.
	 
	 	b.	 	Supplier and BT will enter into additional Work Packages for Qualifying
Business, subject to the terms herein. Each Work Package will include without
limitation, the terms customarily set forth in a Work Package, including
assumptions, deliverables, allocation of responsibilities and other customary
terms.

	 	5.	 	FINANCIAL ARRANGEMENT AND DISCOUNT STRUCTURE

	 	a. 	 	BT has agreed to a minimum spend of [***] in service fees [***], during the Amendment
Term (“Total Committed QBF Spend”) (QBF as defined in Section 5(b)(i)) on
Qualifying Business with Supplier in exchange for certain discounts applied by Supplier
as further set forth herein.
	 
	 	b.	 	In exchange for the Total QBF Committed Spend,

	 	(i)	 	For all service fees (excluding taxes and other pass through
expenses like travel and other reimbursable expenses) for Qualifying Business

Page 1 of 4

 

 

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

IN CONFIDENCE

	 	 	 	(“Qualifying Business Fees” or “QBF”) charged under each
Work Package (and designated by the parties as Qualifying Business), Supplier
shall [***] in effect under the Agreement at the time of the Work Package,
whether for time and materials work or fixed price engagements, for all
Qualifying Business Fees of up to an aggregate amount equal to the percentages
of Eligible Annual Fees in any fiscal quarter as specified in paragraph 2 above
(“Qualifying Business Fee Cap”); provided that

	 	a.	 	if BT’s spend for Qualifying Business with Supplier
falls below [***] in any Annual Period before BT has fulfilled its Total
QBF Committed Spend (measured from the Effective Date through such Annual
Period), BT shall refund the Pre-Paid Discount with respect to such Annual
Period, based on the difference between the discount on [***] and discount
of [***] applied against the actual Qualifying Business Fees for such
Annual Period; and
	 
	 	b.	 	if BT does not achieve the Total QBF Committed Spend
hereunder at the expiration of the Amendment Term, BT shall refund the
difference between the pre-paid discount of [***] and the actual amount of
discount that BT earned as a result of its Qualifying Business Fees
hereunder, to the extent not already refunded to Supplier.

	 	 	 	For the avoidance of doubt, if BT is required to refund any Pre-Paid Discount
per the terms above, BT will not lose the right to earn the aggregate Pre-Paid
Discount refunded, subject to the terms herein.
	 
	 	 	 	BT shall pay all such refunds within [***] days of expiration of the Annual
Period or Amendment Term as the case may be.
	 
	 	 	 	Supplier shall measure the amount of Pre-Paid Discount earned by BT in each
fiscal quarter based on the aggregate amount of Qualifying Business Fees in such
quarter multiplied by the [***] discount as stated in Section 5(b)(i), and
Supplier shall deduct from the Pre-Paid Discount such earned amounts on a
quarterly basis. To the extent BT earns in excess of the Pre-Paid Discount
during the Amendment Term, Supplier shall continue to measure the amount of
Qualifying Business Fees each fiscal quarter until the termination of the
applicable Annual Period. Within [***] days of the end of such Annual Period in
which BT has exceeded the Pre-Paid Discount Amount and any applicable Annual
Period thereafter during the Amendment Term, Supplier will then issue to BT a
credit under the Contract (as amended hereby) in an amount equal to the value of
the sum of Qualifying Business Fees billed to BT with an invoice date during
such Annual Period multiplied by the [***] discount as stated above (“QBF
Credit Sum”). Suppler will issue such credit against monthly invoices
issued by Supplier and agreed with BT in the periods immediately following the
applicable Annual Period. Upon expiration or termination of the Contract where
the parties do not renew the Contract, to the extent of any remaining QBF Credit
Sum, Supplier shall promptly pay to BT any remaining QBF Credit Sum in respect
of the final Annual Period (or part thereof).

Page 2 of 4

 

 

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

IN CONFIDENCE

	 	(ii)	 	Supplier shall pre-pay the aggregate discount hereunder on
Qualifying Business Fees, based on the Total QBF Committed Spend of [***], of
[***] to BT (the “Pre-Paid Discount”) no later than March 31, 2008;
provided that such Pre-Paid Discount shall be refundable to Supplier on
a pro-rata basis, to the extent that such Pre-Paid Discount is not earned
hereunder by BT under the terms herein.
	 
	 	(iii)	 	All Qualifying Business Fees (up to the Qualifying Business
Fee Cap) billed hereunder by Supplier with an invoice date during each Annual
Period shall be applied and included in the calculation of Eligible Annual Fees
and Annual Total Volume Discount for the applicable Annual Period under the
Contract. Further, the calculation of Qualifying Business Fees billed hereunder
shall be subject to the terms and conditions in the Contract (as amended
hereby) as applied to Eligible Annual Fees (including Section 1.7.2 (a), (b)
and (c) thereof). By way of example only, if [***] of Qualifying Business Fees
were invoiced to BT during an Annual Period under a Work Package for Qualifying
Business, [***] would be counted as Eligible Annual Fees under the Contract,
but no taxes or any reimbursable expenses would be included in the calculation
of Qualifying Business Fee or Eligible Annual Fees.
	 
	 	(iv)	 	Subject to the terms herein, service fees billed under time and
materials and fixed price engagements shall all be Qualifying Business Fees
hereunder.
	 
	 	(v)	 	Invoice Schedule: All fees invoiced under Work Packages are
non-cancellable and non-refundable, except as otherwise stated herein.

	 		(c) 	(i) In addition, The Discount Table in Section 1.7.2 of the Contract is hereby
deleted and replaced with the following:

Minimum Commitment of Eligible Annual Fees Target Eligible Annual Fees and

Annual Total Volume Discount Rate

	 	 	For the avoidance of doubt, all examples in Section 1.7.2 of the Contract shall be
correspondingly modified by the amended discount levels and numbers in this Amendment, but
the manner and application of the discount remains unchanged.

	 	(ii)	 	[***].

	 	6.	 	Except as other wise modified herein, all terms of the Contract remain in full force
and effect.

Page 3 of 4

 

 

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

IN CONFIDENCE

The parties have executed this Amendment by their authorized signatories as of the date
first written above.

	 	 	 	 	 	 	 
	SIGNED for and on behalf of SUPPLIER	 	SIGNED for and on behalf of BT
	 
	 	 	 	 	 	 
	Virtusa UK Limited	 	 	 	 
	 
	 	 	 	 	 	 
	Signature

	 	/s/ Paul Greenan
	 	Signature
	 	/s/ David Cole
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name

	 	Paul Greenan
	 	Name
	 	David Cole
	 
	 	 	 	 	 	 
	Position 

Company

	 	Financial Controller
	 	Position 

Company
	 	Senior Procurement Manager

Page 4 of 4

 

 

AMENDMENT number 004 dated 31st March 2008

TO

CONTRACT number 678650 (‘Contract’)

	 	 	 
	Between

	 	(1) British Telecommunications plc (‘ BT’) and
	 
	 

	 	(2) Virtusa UK Limited (‘the Supplier’)

BT and the Supplier agree that:

	•	 	the Contract is amended as set out below;

	•	 	the estimated value of the Contract remains unchanged; and

	•	 	all other Contract provisions remain unchanged.

Amendment Details:

1. All defined terms, unless otherwise defined in this Amendment, shall have the meanings
given them in the Contract.

2. The Definitions section of the Contract shall be amended so that the definition of “Work
Package” shall read as follows:

“Work Package” means a written request for Services, in the form attached hereto as
Schedule 6, issued by any BT Group Company to the Supplier pursuant to which the Supplier is
to provide Services to such BT Group Company in accordance with the specifications set forth
therein indicated in such request which has been accepted by both parties as evidenced as
follows:

Each party may create binding Work Packages, and amendments or change requests to such Work
Packages, by the electronic approval of documents by e-mail as follows:

2.1 Work Packages:

	 	2.1.1	 	a “Work Package” shall consist of an electronic document submitted
to BT by the Supplier which contains:
	 
	 	     (i)	 	a Supplier Quotation Reference

Number (i.e. VIR_BTGS_CMP_029_V3);

	 	2.1.2	 	a Work Package shall be deemed binding and countersigned upon BT’s
issuance of a Purchase Order which references the Supplier Quotation
Reference number.
	 
	 	2.1.3	 	All Work Package terms and conditions shall be subject to the terms and
conditions of the Contract dated as of 29th March 2007, contract
number 678650, by and between BT and Virtusa UK Limited (“Virtusa”). Other
than any specific terms and conditions agreed by both parties in the Work
Package.

 

 

	 	2.2	 	Amendments or Change Requests to Work Packages:

	 	2.2.1	 	a “Work Package Amendment” shall consist of an amendment
electronic document submitted to BT by the Supplier which references:
	 
	 	    (i)	 	a Supplier Quotation Reference Number (i.e.

VIR_BTGS_CMP_029_V3);
	 
	 	2.2.2	 	a Work Package shall be deemed binding and countersigned upon
BT’s Issuance of a Purchase Order which references the Supplier Quotation Reference number.
	 
	 	2.2.3	 	All Work Package terms and conditions shall be subject to the terms
and conditions of the Contract dated as of 29th March 2007,
contract number 678650, by and between BT and Virtusa UK Limited
(“Virtusa”). Other than any specific terms and conditions agreed by
both parties in the Work Package.

	3.	 	Except as specifically modified or amended by this Amendment, the terms and
conditions of the Contract shall remain in full force and effect. In the event of any
conflict between the terms and conditions of this Amendment and the Contract, the terms and
conditions of this Amendment shall take precedence over the Contract.
	 
	4.	 	Capitalized terms used herein but not defined herein shall have the meanings set forth
in the Contract.
	 
	5.	 	Except as other wise modified herein, all terns of the Contract remain in full force and
effect.
	 
	6.	 	The parties have executed this Amendment try their authorised signatories as of the date
first written above.

	 	 	 	 	 	 	 	 	 	 	 
	SIGNED for and on behalf
of BT	 	 	 	SIGNED for and on behalf
of the Supplier	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signed

	 	/s/ Abbi Hewett
 

	 	 
	 	Signed
	 	/s/ Paul Greenan 31/03/08
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name

	 	Abbi Hewett
	 	 	 	Name
	 	Paul Greenan	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Position

	 	Buyer
	 	 	 	Position
	 	Financial Controllerexv10w8

Exhibit 10.8

AMENDED AND RESTATED CREDIT AGREEMENT

     THIS AMENDED AND RESTATED CREDIT AGREEMENT is made as of September 29, 2006, by and between
VIRTUSA CORPORATION, a Delaware corporation, having its chief executive office at 2000 West Park
Drive, Westborough, Massachusetts 01581 (the “Borrower”), and CITIZENS BANK OF MASSACHUSETTS, a
Massachusetts chartered bank having its head office at 28 State Street, Boston, Massachusetts 02109
(“Citizens” or the “Lender”).

     The Borrower has requested the Lender to extend credit in the form of loans and letters of
credit, and the Lender is willing to make loans to the Borrower and is willing to issue Letters of
Credit, in each case on the terms and subject to the conditions set forth herein.

     In consideration of the premises and for other goad and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

SECTION I.

DEFINITIONS

     1.1. Definitions

     All capitalized terms used in this Agreement, in the Note, in the other Loan Documents or in
any certificate, report or other document made or delivered pursuant to this Agreement (unless
otherwise defined therein) shall have the meanings assigned to them below:

     Accounts Receivable and Accounts. All rights of the Borrower to payment of a monetary
obligation (i) for property that has been or is to be sold, leased, licensed, assigned, or
otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a secondary
obligation incurred or to be incurred, or (iv) arising out of the use of a credit or charge card or
information contained on or for use with the card; and all sums of money and other Proceeds due or
becoming due thereon, all notes, bills, drafts, acceptances, instruments, documents and other
debts, obligations and liabilities, in whatever form,
owing to the Borrower with respect thereto, all guarantees and security therefor, and the
Borrowers rights pertaining to and interests in such property, including the right of stoppage in
transit, replevin or reclamation; all chattel paper; all amounts due from Affiliates of the
Borrower; all insurance proceeds; all other rights and claims to the payment of money, under
contracts or otherwise; and all other property constituting “accounts” as such term is defined in
the Uniform Commercial Code,

     Affiliate. With reference to any Person, (i) any director, officer or employee of that Person,
(ii) any other Person controlling, controlled by or under direct or indirect common control of that
Person, (iii) any other Person directly or indirectly holding 10.0% or more of any class of the
capital stock or other equity interests (including options, warrants, convertible securities and
similar rights) of that Person and (iv) any other Person 10.0% more of any class of

1

 

whose capital stock or other equity interests (including options, warrants, convertible securities
and similar rights) is held directly or indirectly by that Person.

     Agreement. This Credit Agreement, including the Exhibits and Schedules hereto, as the same may
be supplemented, amended or restated from time to time.

     Assignee. Sec Section 9.1.

     Borrower. See Preamble.

     Borrower’s Accountants. KPMG LLP, or such other independent certified public accountants as
are selected by the Borrower and are reasonably acceptable to the Lender.

     Borrowing Base. As at the date of any determination thereof, an amount equal to (a) 75.0% of
the unpaid net amount of all Eligible Accounts, minus (b) FX Reserves.

     Borrowing Base Report. A report signed by any Responsible Officer and in substantially the
form of Exhibit E hereto.

     Business Day. Any day, other than a Saturday, Sunday or legal holiday, on which banks in
Boston, Massachusetts are open for the conduct of a substantial part of their commercial banking
business.

     Capital Expenditures. Without duplication, any expenditure for fixed or capital assets,
leasehold improvements, capital leases, installment purchases of machinery and equipment,
acquisitions of real estate and other similar expenditures including (i) in the ease of a purchase,
the entire purchase price, whether or not paid during the fiscal period in question, (ii) in the
case of a capital lease, the capitalized amount (as determined under GAAP) of the obligations under
such lease to pay rent and other amounts, and (iii) expenditures respect to any construction in
progress account of the Borrower.

     Closing Date. The first date on which the conditions set forth in Sections 3.1 and 3.2 have
been satisfied and any Loans are to be made hereunder.

     Code. The Internal Revenue Code of 1986 and the rules and regulations thereunder,
collectively, as the same may from time to time be supplemented or amended and remain in effect.

     Collateral. All of the property, rights and interests of the Borrower and its Subsidiaries
that are or are intended to be subject to the security interests and liens created by the Security
Documents.

     Commitment Fee. See Section 2.5.

     Consolidated Current Liabilities. The aggregate amount of Indebtedness of the Borrower and its
Subsidiaries that may properly be classified as current liabilities in accordance with

2

 

GAAP and in any event including, without limitation, any direct or indirect indebtedness and other
liabilities of the Borrower and its Subsidiaries that are payable on demand or within one (1) year
from the creation thereof:

     Consolidated Net Income. For any fiscal period, the consolidated net income of’ the Borrower
and its Subsidiaries for such period, as determined in accordance with GAAP, except that in no
event shall such consolidated net income include: (i) any gain or loss arising from any write-up of
assets, except to the extent inclusion thereof shall be approved in writing by the Lender; (ii)
earnings of any Subsidiary accrued prior to the date it became a Subsidiary; (iii) any
extraordinary or nonrecurring gains; (iv) any deferred or other credit representing any excess of
the equity of any Subsidiary at the date of acquisition thereof over the amount invested in such
Subsidiary; (v) the net earnings of any business entity (other than a Subsidiary) in which the
Borrower or any Subsidiary has an ownership interest, except to the extent such net earnings shall
have actually been received by the Borrower or such Subsidiary in the form of cash distributions;
(vi) the proceeds of any life insurance policy; and (vii) any reversal of any contingency reserve,
except to the extent that provision for such contingency reserve shall be made from income arising
during such period.

     Consolidated Tangible Net Worth. At any date as of which the amount thereof shall be
determined, the consolidated total assets of the Borrower and its Subsidiaries, minus (a)
Consolidated Total Liabilities, and minus (b) the sum of any amounts attributable to (i) the book
value, net of applicable reserves, of all intangible assets of the Borrower and its Subsidiaries,
including, without limitation, goodwill, trademarks, copyrights, patents and any similar rights,
and unamortized debt discount and expense, (ii) all reserves not already deducted from assets or
included in Consolidated Total Liabilities, (iii) any write-up in the book value of assets
resulting from any revaluation thereof subsequent to the date of the Audited Financial Statement,
(iv) the value of any minority interests in Subsidiaries, (v) intercompany accounts with
Subsidiaries and Affiliates (including receivables due from Subsidiaries and Affiliates and loans
or advances to employees), (vi) the value, if any, attributable to any capital stock or other
equity interests of the Borrower or any Subsidiary held in treasury, and (vii) the value, if any,
attributable to any notes or subscriptions receivable due from equity holders in respect of capital
stock or other equity interests.

     Consolidated Total Liabilities. At any date as of which the amount thereof shall be
determined, all obligations that should, in accordance with GAAP, be classified as liabilities on
the consolidated balance sheet of the Borrower and its Subsidiaries, including in any event all
Indebtedness.

     Contra Customer. Any customer or other Person with whom the Borrower has a contract or
agreement of any kind (including an account payable) and in respect of which there is an Account
included in Eligible Accounts.

     Default. An Event of Default or any event or condition that, but for the requirement that time
elapse or notice be given, or both, would constitute an Event of Default.

     Drawdown Date. The Business Day on which any Loan is made or is to be made.

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     Eligible Account(s). An Account Receivable which:

     (a) Is not unpaid 90 or more days after invoice date and is not more than 60 days past due
under the original terms of sale;

     (b) Arose in the ordinary course of business of the Borrower as a result of either (i)
services which have been performed for the account debtor or (ii) the absolute sale of goods which
have been shipped to the account debtor (and not on a bill-and-hold, guaranteed sale,
sale-or-return, sale-on-assignment, sale-on-approval, consignment or other repurchase or return
basis);

     (c) Is the legal, valid and binding obligation of the account debtor thereunder is assignable,
is owned by the Borrower free and clear of all Encumbrances (except in favor of the Lender) and is
subject to a valid, perfected first security interest of the Lender (and if the account debtor is
the United States of America or any agency or instrumentality thereof, the right to payment has
been assigned to the Lender in compliance with the Assignment of Claims Act of 1940, as amended)
and is not evidenced by a promissory note or other instrument;

     (d) Has not been materially reduced and is not subject to material reduction, as against the
Borrower, its agents or the Lender, by any offset, counterclaim, adjustment, credit, allowance or
other defense and as to which there is no (and no basis for any) return, rejection, loss or damage
of or to the goods or services giving rise thereto, or any request for credit or adjustments known
to the Borrower; provided, however, that if an Account Receivable, otherwise meeting the definition
of Eligible Account, has been materially reduced or is subject to material reduction solely because
of a failure of the Borrower to timely meet contract milestones and for no other reason (i.e.
“retainage”) or because of a warranty claim and for no other reason, such Account Receivable shall
be an Eligible Account, to the extent it has not been so materially reduced or is not subject to
material reduction;

     (e) Is not in dispute or uncollectible for any reason, including, without limitation, return,
rejection, repossession, loss of or damage to the goods or services giving rise thereto or other
dispute, arty bankruptcy, insolvency, adverse credit rating or other financial difficulty of the
account debtor, or any impediment to the assertion of a claim or commencement of an action against
the account debtor (including as a consequence of the failure of the Borrower to be qualified or
licensed in any jurisdiction where such qualification or licensing is required), all as determined
by the Lender in its sole discretion;

     (f) Is not owing from any Affiliate of the Borrower;

     (g) Is owing from an account debtor located in the United States, or, if not located in the
United States, whose Accounts Receivable are covered by credit insurance satisfactory to the Lender
in its sole discretion or supported by a standby letter of credit in favor of the Lender
satisfactory to the Lender in its sole discretion;

     (h) Is owing from an account debtor at least 75.0% of whose accounts payable owing to
the Borrower are Eligible Accounts;

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     (i) Is not owing from a Person who is the account debtor on more than 35.0% of all Eligible
Accounts, unless consented to by the Lender in writing; provided, that the foregoing limitation
shall not apply to account debtors (i) located in the United States with public debt issued and
outstanding rated BBB- or better by Standard & Poor’s, a division of The McGraw-Hill Companies,
Inc., and/or Bbb3 or better by Moody’s Investor Services Inc. or (ii) if not located in the United
States, whose Accounts Receivable are covered by credit insurance satisfactory to the Lender in its
sole discretion or supported by a standby letter of credit in favor of the Lender satisfactory to
the Lender in its sole discretion;

     (j) If owing from any Contra Customer, will be eligible only to the extent it exceeds the
amount of the Borrower’s accounts payable, or other indebtedness permitted hereunder that is
payable, to such Contra Customer; and

     (k) Has not been designated by the Lender in its reasonable discretion by notice to the
Borrower as unacceptable for any reason.

     Encumbrances. See Section 7.3.

     Environmental Laws. Any and all applicable federal, state and local environmental, health or
safety statutes, laws, regulations, rules and ordinances (whether now existing or hereafter enacted
or promulgated), and all applicable judicial, administrative and regulatory decrees, judgments and
orders, including common law rulings and determinations, relating to injury to, or the protection
of real or personal property or human health or the environment, including, without limitation, all
requirements pertaining to reporting, licensing, permitting, investigation, remediation and removal
of emissions, discharges, releases or threatened releases of Hazardous Materials into the
environment or relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of such Hazardous Materials.

     ERISA. The Employee Retirement Income Security Act of 1974 and the rules and regulations
thereunder, collectively, as the same may from time to time be supplemented or amended and remain
in effect.

     ERISA Affiliate. Any trade or business, whether or not incorporated, that is treated as a
single employer with the Borrower under Section 41 4(b) (c), (m) or (o) of the Code and Section
4001(a) (14) of ERISA.

     ERISA Event. (a) Any “reportable event,” as defined in Section 4043 of ERISA or the
regulations issued thereunder, with respect to a Plan unless the 30-day notice requirement with
respect to such event has been waived by the PBGC; (b) the adoption of any amendment to a Plan that
would require the provision of security pursuant to Section
401(a)(29) of the Code or Section 307 of ERISA; (c) the existence with respect to any Plan of
an “accumulated finding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA,
whether or not waived; (d) the filing pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (e)
the

5

 

incurrence of any liability under Title IV of ERISA with respect to the termination of any Plan or
the withdrawal or partial withdrawal of the Borrower or any of its ERISA Affiliates from any Plan
or Multiemployer Plan; (f) the receipt by the Borrower of any ERISA Affiliate from the PBGC or a
plan administrator or any notice relating to the intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (g) the receipt by the Borrower or any ERISA Affiliate of
any notice concerning the imposition of Withdrawal Liability (as defined in Part I of Subtitle E of
Title IV of ERISA) with respect to any Multiemployer Plan or a determination that a Multiemployer
Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of
ERISA; (ii) the occurrence of a “prohibited transaction” with respect to which the Borrower or any
of the Subsidiaries is a “disqualified person” (within the meaning of Section 4975 of the Code) or
with respect to which the Borrower or any such Subsidiary could otherwise be liable; and (i) any
other event or condition with respect to a Plan or Multiemployer Plan that could reasonably be
expected to result in liability of the Borrower.

     Event of Default. Any event described in Section 8.1.

     FX Documents. Any and all documents entered into by the Borrower in connection with FX
Transactions.

     FX Reserves. At anytime of determination of the Borrowing Base, an amount equal to 15.0% of
the face amount (in United States Dollars) of all foreign exchange contracts entered into in
connection with FX Transactions.

     FX Transactions. Any transactions arranged or facilitated by Lender on behalf of Borrower or
its Subsidiaries involving the purchase or sale of foreign currencies either on a current or
deferred basis.

     GAAP. Generally accepted accounting principles, consistently applied.

     Guarantees. As applied to any Person (a “guarantor”), all guarantees, endorsements and other
contingent or surety obligations with respect to Indebtedness or other obligations of any other
Person (the “primary obligor”), whether or not reflected on the consolidated balance sheet of the
guarantor, including any obligation of the guarantor,
direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or
payment of such Indebtedness or other obligation or to purchase (or to advance or supply funds for
the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or other obligation.

     Hazardous Materials. Any substance (i) the presence of which requires or may hereafter require
notification, investigation, removal or remediation under any Environmental Law; (ii) which is or
becomes defined as a “hazardous waste”, “hazardous material” or “hazardous substance” or
“pollutant” or “contaminant” under any present or future Environmental Law or

6

 

amendments thereto including, without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C. Section 9601 et seq.) and any applicable local statutes
and the regulations promulgated thereunder; (iii) which is toxic, explosive, corrosive, flammable,
infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous and which is or becomes
regulated pursuant to any Environmental Law by any governmental authority, agency, department,
commission, board, agency or instrumentality of the United States, any applicable state of the
United States, or any political subdivision thereof, or (iv) without limitation, which contains
gasoline, diesel fuel or other petroleum products, asbestos or polychlorinated biphenyls (“PCB’s”).

     Indebtedness. As applied to the Borrower and its Subsidiaries, without duplication, (i) all
obligations for borrowed money or other extensions of credit whether secured or unsecured, absolute
or contingent, including, without limitation, unmatured reimbursement obligations with respect to
letters of credit or guarantees issued for the account of or on behalf of the Borrower and its
Subsidiaries and all obligations representing the deferred purchase price of property, other than
accounts payable arising in the ordinary course of business, (ii) all obligations evidenced by
bonds, notes, debentures or other similar instruments, (iii) all obligations secured by any
mortgage, pledge, security interest or other lien on property owned or acquired by the Borrower or
any of its Subsidiaries whether or not the obligations secured thereby shall have been assumed,
(iv) that portion of all obligations arising under leases that is required to be capitalized on the
consolidated balance sheet of the Borrower and its Subsidiaries, (v) all Guarantees, (vi) all
obligations that are immediately due and payable out of the proceeds of or production from property
now or hereafter owned or acquired by the Borrower or any of its Subsidiaries, and (vii) all other
obligations which, in accordance with GAAP,
would be included as a liability on the consolidated balance sheet of the Borrower and its
Subsidiaries, but excluding anything in the nature of capital stock, capital surplus and retained
earnings.

     Audited Financial Statement. See Section 4.6.

     Interest Expense. For any fiscal period, the consolidated interest expense (including imputed
interest and capitalized lease obligations) and amortized debt discount on indebtedness of the
Borrower and its Subsidiaries for such period.

     Investment. As applied to the Borrower and its Subsidiaries, the purchase or acquisition of
any share of capital stock, partnership interest, evidence of indebtedness or other equity security
of any other Person (including any Subsidiary), any loan, advance or extension of credit (excluding
Accounts Receivable arising in the ordinary course of business) to, or contribution to the capital
of, any other Person (including any Subsidiary), any real estate held for sale or investment, any
securities or commodities futures contracts held, any other investment in any other Person
(including any Subsidiary), and the making of any commitment or acquisition of any option to make
an Investment.

     Lease. That certain lease, dated as of June, 2000, between the Borrower and W9/TIB Real Estate
Limited Partnership in respect of the premises occupied by the Borrower in Westborough,
Massachusetts, as amended to date by the First Amendment dated as of November 2000 and Second
Amendment and Extension of Lease dated as of December 30, 2003.

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     Lease Letters of Credit. Any Letters of Credit issued for the purpose of securing the
Borrower’s obligations under the Lease, including, without limitation, any issued prior to the date
hereof.

     Lender. See Preamble.

     Letter of Credit Applications. Applications for Letters of Credit in such form as may be
required by the Lender from time to time which are executed and delivered by the Borrower to the
Lender pursuant to Section 2A, as the same may be amended or supplemented from time to time.

     Letter of Credit Fee. See Section 2.5.

     Letter of Credit Pledge Agreement. See Section 2A.1(b).

     Letter of Credit Sublimit. The sum of $1,500,000.00.

     Letters of Credit. See Section 2A.1(a).

     Loan Documents. This Agreement, the Note, the Letters of Credit, the Letter of Credit
Applications, the Security Documents and the FX Documents, together with any
agreements, instruments or documents now or hereafter executed and delivered pursuant to or in
connection with any of the foregoing.

     Loans. The loans made or to be made by the Lender to the Borrower pursuant to Section II of
this Agreement, including Revolving Credit Loans and unpaid Reimbursement Obligations.

     Maximum Drawing Amount. The maximum aggregate amount from time to time that beneficiaries may
draw under outstanding Letters of Credit.

     Multiemployer Plan. Any plan which is a Multiemployer Plan as defined in Section 4001(a) (3)
of ERISA.

     Note Record. Any internal record, including a computer record, maintained by the Lender with
respect to any Loan.

     Note. See Section 2.2(a).

     Notice of Borrowing. The notice, substantially in the form of Exhibit B hereto, to be given by
the Borrower to the Lender to request a Revolving Credit Loan.

     Obligations. The aggregate outstanding principal balance of and interest (and premium. if any)
on the Loans (including, without limitation, interest accruing at the then applicable rate provided
herein after the maturity of the Loans and interest accruing at the then applicable rate provided
herein after the filing of any petition in bankruptcy, or the commencement of any

8

 

insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) and all other obligations of
the Borrower to the Lender of every kind and description pursuant to or in connection with the Loan
Documents and FX Transactions, deposit accounts, cash management accounts and services, hedging
transactions, interest rate caps, collars and similar interest rate protection products, and all
other banking products and services, direct or indirect, absolute or contingent, primary or
secondary, due or to become due, now existing or hereafter arising, regardless of how they arise or
by what agreement or instrument, if any, in each case whether on account of principal interest,
premium, reimbursement obligations, fees, indemnities, coats, expenses or otherwise (including,
without limitation, all fees and disbursements of counsel that are required to be paid by the
Borrower pursuant to any of the Loan Documents), and including obligations to perform acts and
refrain from taking action as well as obligations to pay money.

     Participant. See Section 9.2.

     PBGC. The Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its
functions under ERISA.

     Pension Plan. Any Plan which is an “employee pension benefit plan” (as defined in ERISA).

     Permitted Encumbrances. See Section 7.3.

     Person. Any individual, corporation, partnership, limited liability company, trust,
unincorporated association, business or other legal entity, and any government or governmental
agency or political subdivision thereof.

     Plan. Any “employee pension benefit plan” or “employee welfare benefit plan” (each as defined
in Section 3 of ERISA) maintained by the Borrower or any Subsidiary.

     Pledge Agreement. That certain Pledge Agreement dated the date hereof pursuant to which
Borrower shall pledge to Lender the capital stock of its subsidiary, Virtusa Securities
Corporation.

     Prime Rate. The rate of interest announced from time to time by the Lender at its head office
as its “Prime Rate”. The Prime Rate is a reference rate and does not necessarily represent the
lowest or best rate being charged to any customer. Any change in the Prime Rate shall be effective
from and including the effective date of such change.

     Prohibited Transaction. Any “prohibited transaction” within the meaning of Section 406 of
ERISA or Section 4975 of the Code.

     Qualified Investments. As applied to the Borrower and its Subsidiaries, Investments in (1)
notes, bonds or other obligations of the United States of America or any agency thereof that as to
principal, and interest constitute direct obligations of or are guaranteed by the United States of
America and that have maturity dates not more than one year from the date of acquisition, (ii)

9

 

certificates of deposit, demand deposit accounts or other deposit instruments or accounts
maintained in the ordinary course of business (x) with Silicon Valley Bank, (y) with banks or trust
companies organized. under the laws of the United States or any state thereof that have capital and
surplus of at least $500,000,000.00 which certificates of deposit and other deposit instruments, if
not payable on demand, have maturities of not more than 180 days from the date of acquisition or
(z) with respect to deposit accounts for the purpose of funding ordinary course payroll obligations
to the Borrower’s or its Subsidiaries’ overseas employees, with banks or trust companies organized
under the laws of India or Sri Lanka known by the Borrower to be reputable for such purposes,
subject to the limitation set forth in Section 6.2(b), (iii) commercial paper that, as of the date
of acquisition, has the highest credit rating obtainable from Moody’s Investors Service, Inc. or
Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. or their successors, and in each
case maturing not more than 270 days from the date of
acquisition, and (iv) any repurchase agreement secured by any one or more of the foregoing.

     Reimbursement Obligation. The Obligation of the Borrower to reimburse the Lender on account of
any drawing under any Letter of Credit as provided in Section 2A.2

     Responsible Officer. The chief financial officer of the Borrower and any other officer of the
Borrower designated by the chief financial officer to sign Borrowing Base Reports and Notices of
Borrowing.

     Restricted Payment. Any dividend, distribution, loan, advance, guaranty, extension of credit
or other payment (whether in cash, securities or other property) to or for the benefit of any
Person who holds an equity interest in the Borrower or any of its Subsidiaries, whether or not such
interest is evidenced by a security, and any other payment, whether in cash, securities or other
property, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any capital stock of the Borrower or any of its subsidiaries, whether now or
hereafter outstanding, or of any options, warrants or similar rights to purchase such capital stock
or any security convertible into or exchangeable for such capital stock.

     Revolving Credit Commitment. The maximum dollar amount of credit which the Lender has agreed
to loan to the Borrower as Revolving Credit Loans or make available to the Borrower pursuant to
Letters of Credit upon the terms and subject to the conditions of this Agreement, initially
$3,000,000.00, as the Lender’s Revolving Credit Commitment may be modified pursuant hereto and in
effect from time to time. A portion of the Revolving Credit Commitment up to the Letter of Credit
Sublimit shall be available to Borrower for issuance of Letters of Credit.

     Revolving Credit Loans. See Section 2.1(a).

     Revolving Credit Maturity Date. September 30, 2007.

     Revolving Credit Outstandings. At any time, the outstanding principal balance of Revolving
Credit Loans.

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     Security Documents. A security agreement, a negative pledge agreement with respect to
intellectual property of the Borrower and the Letter of Credit Pledge Agreement the Pledge
Agreement, and any subsequent pledge or security agreements granted by Borrower to Lender, each in
favor of the Lender to secure Obligations, in each case as amended and/or restated and in effect
from time to time, and any additional documents evidencing or perfecting the Lender’s lien on the
Collateral.

     Subsidiary. With respect to any Person, any corporation, association, joint stock company,
business trust, partnership, limited liability company or other similar organization of which more
than 50.0% of the ordinary voting power for the election of a majority of the members of the board
of directors or other governing body of such entity is held or controlled by such Person or a
Subsidiary of such Person; or any other such organization the management of which is directly or
indirectly controlled by such Person or a Subsidiary of such Person through the exercise of voting
power or otherwise; or any joint venture, whether incorporated or not, in which such Person has
more than a 50.0% ownership interest.

     Total Revolving Credit Outstandings. At any time, the sum of (i) The aggregate outstanding
principal balance of Revolving Credit Loans and (ii) The Maximum Drawing Amount of Letters of
Credit at such time.

     1.2. Rules of Interpretation.

     (a) All terms of an accounting or financial character used herein but not defined herein shall
have the meanings assigned thereto by GAAP, as in effect from time to time, and all calculations
for the purposes of Section VI hereof shall be made in accordance with GAAP; provided that if any
time after the date hereof there shall occur any change in respect of GAAP from that used in the
preparation of the audited financial statements referred to in Section 4.6(a) in a manner that
would have a material effect on any matter which is material to Section VI, the Borrower and the
Lender will, within 10 Business Days after notice from the Lender or the Borrower, as the case may
be to that effect, and continue in good faith negotiations with a view towards making appropriate
amendments to the provisions hereof acceptable to the Lender to reflect as narrowly possible the
effect on Section VI as in effect on the date hereof; provided, further, that until such notice
shall have been withdrawn or the relevant provisions amended in accordance herewith, Section VI
shall be interpreted on the basis of GAAP as in effect and applied immediately before such change
shall have become effective.

     (b) Except as otherwise specifically provided herein, reference to any document or agreement
shall include such document or agreement as amended modified or supplemented and in effect from
time to time in accordance with its terms and the terms of this Agreement.

     (c) The singular includes the plural and the plural includes the singular. Whenever the
context may require, any pronoun shall include the corresponding masculine, feminine and neuter
forms.

     (d) A reference to any Person includes its permitted successors and permitted assigns,

     (e) The words “include”, “includes” and “including” are not limiting.

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     (f) The words “herein”, “hereof’, “hereunder” and words of like import shall refer to this
Agreement as a whole and not to any particular section or subdivision of this Agreement.

     (g) All terms not specifically defined herein or by GAAP that arc defined in the Uniform
Commercial Code as in effect in The Commonwealth of Massachusetts, shall have the meanings assigned
to them in such Uniform Commercial Code.

SECTION II

DESCRIPTION OF CREDIT

     2.1. Revolving Credit Loans.

     (a) Upon the terms and subject to the conditions of this Agreement, and in reliance upon the
representations, warranties and covenants of the Borrower herein, the Lender agrees to make
revolving credit loans (the “Revolving Credit Loans”) to the Borrower at the Borrower’s request
from time to time from and after the Closing Date and prior to the Revolving Credit Maturity Date,
provided that Total Revolving Credit Outstandings (after giving effect to all requested Revolving
Credit Loans and Letters of Credit) shall not at any time exceed the lesser of (i) the Borrowing
Base and (ii) the Revolving Credit Commitment. Subject to the terms and conditions of this
Agreement, the Borrower may borrow, repay, prepay and reborrow amounts, up to the limits imposed by
this Section 2.1, from time to time between the Closing Date and the Revolving Credit Maturity Date
upon request given to the Lender pursuant to Section 2.3. Each request for a Revolving Credit Loan
hereunder shall constitute a representation and warranty by the Borrower that the conditions set
forth in Sections 3.1 and 3.2 have been satisfied as of the date of such request.

     (b) The Revolving Credit Commitment shall terminate at 5:00 p.m. Boston time on the Revolving
Credit Maturity Date.

     2.2. The Note.

     (a) The Revolving Credit Loans shall be evidenced by a promissory note in the form of Exhibit
A hereto, dated as of the Closing Date (the “Note”).

     (b) The Borrower irrevocably authorizes the Lender to make or cause to be made, at or about
the time of the Drawdown Date of any Loan or at the time of receipt of any payment of principal on
the Note, an appropriate notation on its Note Record reflecting (as the case may be) the making of
such Loan or the receipt of such payment. The outstanding amount of the Loans set forth on the Note
Record shall be prima facie evidence of the principal amount thereof owing and unpaid to the
Lender, but the failure to record, or any error in so recording, any such amount on the Lender’s
Note Record
shall not limit or otherwise affect the obligations of the Borrower hereunder or under the
Note to make payments of principal of or interest on the Note when due.

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     2.3. Notice and Manner of Borrowing. Whenever the Borrower desires to obtain a
Revolving Credit Loan hereunder, the Borrower shall give the Lender a telephonic notice promptly
confirmed by a written Notice of Borrowing, which notices shall be irrevocable and which must be
received no later than 2:00 p.m. Boston time on the date the requested Revolving Credit Loan is to
be made. Such Notice of Borrowing shall specify the effective date and amount of the Revolving
Credit Loan. If the written confirmation of any telephonic notification differs in any material
respect from the action taken by the Lender, the records of the Lender shall control absent
manifest error. If the Lender receives a Notice of Borrowing after the time specified in subsection
(a) above, such Notice shall not be effective.

     2.4. Interest Rates and Payment of Interest.

     (a) Each Revolving Credit Loan shall bear interest on the outstanding principal amount thereof
at a rate per annum equal to the Prime Rate minus 0.25%, which rate shall change contemporaneously
with any change in the Prime Rate. Such interest shall be payable monthly in arrears on the first
Business Day of each month.

     (b) If a Default shall occur, then at the option of the Lender (i) the unpaid balance of Loans
shall bear interest, to the extent permitted by law, compounded daily at an interest rate equal to
2.0% per annum above the interest rate applicable to each such Loan in effect on the day such
Default occurs, until such Default is cured or waived, and (ii) the Borrower shall pay to the
Lender a fee (in addition to the Letter of Credit Fee) equal to 1.0% per annum of the Maximum
Drawing Amount of all Letters of Credit outstanding during the period from the occurrence of such
Default until such Default is cured or waived.

     (c) All agreements between the Borrower and the Lender are hereby expressly limited so that in
no contingency or event whatsoever, whether by reason of acceleration of maturity of the
Obligations or otherwise, shall the amount paid or agreed to be paid to the Lender for the use or
the forbearance of the Obligations exceed the maximum permissible under applicable law. As used in
this Section 2.4(c), the term “applicable law” shall mean the law of The Commonwealth of
Massachusetts in effect as of the date hereof provided, however, that in the event there is a
change in the law which results in a higher permissible rate of interest, then the Loan Documents
shall be governed by such new law as of its effective date. In this regard, it is expressly agreed
that it is the intent of Borrower and the Lender in the execution, delivery and acceptance of the
Loan Documents to contract in strict compliance with the laws of The Commonwealth of Massachusetts
from time to time in effect. If, under or from. any circumstances
whatsoever, fulfillment of any provision of any of the Loan Documents at the time of
performance of such provision shall be due, shall involve transcending the limit of such validity
prescribed by applicable law, then the obligation, to be fulfilled shall automatically be reduced
to the limits of such validity, and if under or from any circumstances whatsoever the Lenders
should ever receive as interest an amount which would exceed the highest lawful rate, such amount
which would be excessive interest shall be applied to the reduction of the principal balance of the
Obligations and not to payment of interest. This provision shall control every other provision of
all Loan Documents.

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     2.5. Fees and Charges.

     (a) The Borrower shall pay to the Lender an annual commitment fee (the “Commitment Fee”),
computed on a daily basis and payable quarterly in arrears on the first Business Day of each
quarter, equal to (i) the excess of (x) the Revolving Credit Commitment at the time (without giving
effect to any Letters of Credit or requested Letters of Credit) over (y) Revolving Credit
Outstandings from time to time, multiplied by (ii) 0.1667%.

     (b) The Borrower shall pay to the Lender a fee (the “Letter of Credit Fee”) at a rate per
annum equal to (i) the face amount of each outstanding Letter of Credit multiplied by (ii) 1.25%
with respect to Letters of Credit which are not expressly cash-secured. The Letter of Credit Fee
shall be 1.0% per annum with respect to any Letters of Credit which are expressly and fully secured
by a pledge of cash on deposit with Citizens. The Letter of Credit Fee shall be paid quarterly in
arrears on the first Business Day of each quarter. The Borrower shall also pay to the Lender on
demand standard documentation charges for the issuance of each Letter of Credit and the amount of
any taxes, fees, charges or other costs and expenses whatsoever incurred by the Lender in
connection with any Letter of Credit.

     (c) Without limiting any of the Lender’s other rights hereunder or by law, if any Loan or any
portion thereof or any interest thereon or any other amount payable hereunder or under any other
Loan Document is not paid within ten days after its due date, the Borrower shall pay to the Lender
on demand a late payment charge equal to 5.0% of the amount of the payment due.

     (d) The Borrower authorizes the Lender to charge to its Note Record or to any deposit account
which the Borrower may maintain with the Lender the interest, fees, charges, taxes and expenses
provided for in this Agreement the other Loan Documents or any other document executed or delivered
in connection herewith or therewith.

     2.6. Payments and Prepayments of the Loans

     (a) On the Revolving Credit Maturity Date, the Borrower shall pay in full the unpaid principal
balance of all outstanding Revolving Credit Loans, together with all unpaid interest thereon and
all fees and other amounts due with respect thereto,

     (b) Revolving Credit Loans may be prepaid at any time, without premium or penalty. Any such
notice of prepayment shall be irrevocable. Prepayments of Revolving Credit Loans may be reborrowed
to the extent provided in Section 2.1.

     (c) If at any time Revolving Credit Outstandings exceed the lesser of (i) the Borrowing Base
and (ii) the Revolving Credit Commitment, the Borrower shall immediately pay the amount of any such
excess to the Lender for application to the Revolving Credit Loans.

     2.7. Method of Payments

     (a) All payments by the Borrower hereunder and under any of the other Loan Documents shall be
made in lawful money of the United States at the Lender’s head office or at such other location
that the Lender may from time to time designate, in each case in immediately available funds, and
shall he deemed to have been made only when made in compliance with this Section.

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All such payments shall be made without set-off or counterclaim and free and clear of and without
deduction for any taxes, levies, imposts, duties, charges, fees, deductions, withholdings,
compulsory loans, restrictions or conditions of any nature now or hereafter imposed or levied by
any jurisdiction or any political subdivision thereof or taxing or other authority therein unless
the Borrower is compelled by law to make such deduction or withholding. If any such obligation is
imposed upon the Borrower with respect to any amount payable by it hereunder or under any of the
other Loan Documents, the Borrower will pay to the Lender such additional amount in United States
Dollars as shall be necessary to enable the Lender to receive the same net amount which the Lender
would have received on such clue date had no such obligation been imposed upon the Borrower, The
Borrower will deliver promptly to the Lender certificates or other valid vouchers or other evidence
of payment reasonably satisfactory to the Lender for all taxes or other charges deducted from or
paid with respect to payments made by the Borrower hereunder or under such other Loan Document, The
Lender may, and the Borrower hereby authorizes the Lender to, debit the amount of any payment not
made by such time to the demand deposit accounts of the Borrower with the Lender or to its Note
Record.

     (b) If the Revolving Credit Commitment shall have been terminated or the Obligations shall
have been declared immediately due and payable pursuant to Section 8.2 all funds received from or
on behalf of the Borrower (including as proceeds of Collateral) by the Lender in respect of
Obligations, shall be applied by the Lender in the
following manner and order: (i) first, to reimburse the Lender for any amounts payable
pursuant to Sections 10.2 and 11.3 hereof; (ii) second, to the payment of Commitment Fees, Letter
of Credit Fees and any other fees payable hereunder; (iii) third, to the payment of interest due on
the Loans and the Reimbursement Obligations; (iv) fourth, to the payment of the outstanding
principal balance of the Loans and the Reimbursement Obligations, pro rata to the outstanding
principal balance of each, and to provide the Lender with cash collateral for any issued and
outstanding Letters of Credit in an amount determined by Lender to be necessary to secure such
Obligations; (v) fifth, to the payment of any other Obligations payable by the Borrower, pro rata
to the outstanding principal balance of each; and (vi) any remaining funds shall be paid to whoever
shall be entitled thereto or as a court of competent jurisdiction shall direct.

     2.8. Computation of Interest and Fees; Due Date. Interest and all fees payable hereunder shall
be computed daily on the basis of a year of 360 days and paid for the actual number of days for
which due. If the due date for any payment of principal is extended by operation of law, interest
shall be payable for such extended time. If any payment required by this Agreement becomes due on a
day that is not a Business Day such payment may be made on the next succeeding Business Day, and
such extension shall be included in computing interest and fees in connection with such payment.

     2.9. Increased Costs. In case any change made after the Closing Date in any law, regulation,
treaty or official directive or the interpretation or application thereof by any court or by any
governmental authority charged with the administration thereof or the compliance with any guideline
or request of any central bank or other governmental authority (whether or not having the force of
law):

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     (a) Subjects the Lender to any tax with respect to payments of principal or interest or any
other amounts payable hereunder by the Borrower or otherwise with respect to the transactions
contemplated hereby (except for taxes on the overall net income of the Lender imposed by the United
States of America or any political subdivision thereof), or

     (b) Imposes, modifies or deems applicable any deposit insurance, reserve, special deposit or
similar requirement against assets held by, or deposits in or for the account of, or loans by, the
Lender, or

     (c) Imposes upon the Lender any other condition with respect to its obligations or performance
under this Agreement or in respect of any Letter of Credit, and the result of any of the foregoing
is to increase the cost to the Lender, reduce the income receivable by the Lender or impose any
expense upon the Lender with respect to any Loans or its obligations under this Agreement or in
respect of any Letter of Credit, the Lender shall notify the Borrower thereof. The Borrower agrees
to pay to the Lender the amount of such increase in cost, reduction in income or additional expense
as and when such cost, reduction or expense is incurred or determined, upon presentation by the
Lender of a
statement in the amount and setting forth in reasonable detail the Lender’s calculation
thereof and the assumptions upon which such calculation was based, which statement shall be deemed
true and correct absent manifest error.

     2.10. Capital Requirements. If after the date hereof the Lender determines that (i) the
adoption of or change in any law, rule, regulation or guideline regarding capital requirements for
banks or bank holding companies, or any change in the interpretation or application thereof (by any
governmental authority charged with the administration thereof or (ii) compliance by the Lender or
its parent bank holding company with any guideline, request or directive of any such entity
regarding capital adequacy (whether or not having the force of law), has the effect of reducing the
return on the Lender’s or such holding company’s capital as a consequence of the Lender’s Revolving
Credit Commitment to make Loans hereunder or its obligations in respect of any Letter of Credit to
a level below that which the Lender or such holding company could have achieved but for such
adoption, change or compliance (taking into consideration the Lender’s or such holding company’s
then existing policies with respect to capital adequacy and assuming the full utilization of such
entity’s capital) by any amount deemed by the Lender to be material, then the Lender shall notify
the Borrower thereof. The Borrower agrees to pay to the Lender the amount of such reduction of
return on capital as and when such reduction is determined, payable within 90 days after
presentation by the Lender of a statement in the amount and setting forth in reasonable detail the
Lender’s calculation thereof and the assumptions upon which such calculation was based (which
statement shall be deemed true and correct absent manifest error) unless within such 90 day period
the Borrower shall have prepaid in full all Obligations to the Lender, in which event no amount
shall be payable to the Lender under this Section. In determining such amount, the Lender may use
any reasonable averaging and attribution methods.

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SECTION 2A

LETTERS OF CREDIT

     2A.1 Issuance.

     (a) Upon the terms and subject to the conditions hereof, the Lender, in reliance upon the
representations and warranties of the Borrower contained herein, agrees to issue letters of credit
(the “Letters of Credit”) prior to the Revolving Credit Maturity Date for the account of the
Borrower in such form as may be requested from time to time by the Borrower and agreed to by the
Lender, provided that the Maximum Drawing Amount of all Letters of Credit shall not at any time
exceed the Letter of Credit Sublimit (after giving effect to all requested Letters of Credit) and
the sum of the outstanding amount of Revolving Credit Loans and the Maximum Drawing Amount of all
Letters of Credit shall not at any time exceed the Revolving Credit Commitment; provided, further
that no
Letter of Credit shall have an expiration date later than the Maturity Date (unless extended
beyond such date by the Lender in its sole discretion).

     (b) The Borrower has executed and delivered to the Lender a letter of credit pledge agreement,
dated June 8, 2004 (the “Letter of Credit Pledge Agreement”), in connection with a letter of credit
issued in connection with the Lease (the “Lease Letter of Credit”) and has delivered to the Lender
cash collateral under the Letter of Credit Pledge Agreement equal to 100% of the Maximum Drawing
Amount under such Lease Letter(s) of Credit. The Lease Letter of Credit shall not be deemed to be
issued under the Revolving Credit Commitment or Letter of Credit Sublimit. At least three (3)
Business Days prior to the proposed issuance date of any other Letter of Credit, the Borrower shall
deliver to the Lender (i) a Letter of Credit Application setting forth the Maximum Drawing Amount
of all Letters of Credit (including the requested Letter Of Credit, but excluding the Lease Letter
of Credit), the requested language of the requested Letter of Credit (which shall be reasonably
acceptable to Lender) and such other information as the Lender shall require, and (ii) if the
Letter of Credit is to be secured by cash collateral, a designation of cash collateral under the
Letter of Credit Pledge Agreement equal to 100.0% of the Maximum Drawing Amount of the requested
Letter of Credit. Each request for the issuance of a Letter of Credit hereunder shall constitute a
representation and warranty by the Borrower that the conditions set forth in Sections 3.1 and 3.2
have been satisfied as of the date of such request.

     2A.2 Reimbursement Obligation of the Borrower. In order to induce the Lender to issue, extend
and renew each Letter of Credit, the Borrower hereby agrees to reimburse or pay to the Lender, with
respect to each Letter of Credit issued, extended or renewed by the Lender hereunder on each date
that any draft presented under any Letter of Credit is honored by the Lender or the Lender
otherwise makes payment with respect thereto, the Borrower shall pay (i) the amount paid by the
Lender under or with respect to such Letter of Credit, and (ii) the amount of any taxes, fees,
charges or other costs and expenses whatsoever (including standard documentation charges for the
issuance of each Letter of Credit) incurred by the Lender in connection with any payment made by
the Lender under, or with respect to, such Letter of Credit. Interest on any and all amounts
remaining unpaid by the Borrower under this Section 2A2 at any time from the date such amounts
become due and payable (whether as stated in this Section 2A.2, by acceleration or otherwise) until
payment in full (whether before or after judgment) shall be payable to the Lender on demand at a
rate per annum equal to 2.0% above the interest rate applicable to Revolving Credit Loans at the
time in the absence of an Event of Default.

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     2A.3 Letter of Credit Payments. If any draft shall be presented or other demand for
payment shall be made under any Letter of Credit, the Lender shall notify the Borrower of the date
and amount of the draft presented or demand for payment and of the date and time when it expects to
pay such draft or honor such demand for payment. The responsibility of the Lender to the Borrower
shall be only to determine that the
documents (including each draft) delivered under each Letter of Credit in connection with such
presentment shall be in conformity in all material respects with such Letter of Credit. Any unpaid
Reimbursement Obligations with respect to Letters of Credit shall be deemed to be Revolving Credit
Loans and shall be charged to Borrower’s Loan account.

     2A.4 Obligations Absolute

     (a) The Borrower’s Reimbursement Obligations shall be absolute and unconditional under any and
all circumstances and irrespective of the occurrence of any Default or Event of Default or any
condition precedent whatsoever or any set-off; counterclaim or defense to payment which the
Borrower may have or have had against the Lender or any beneficiary of a Letter of Credit. The
Borrower further agrees that the Lender shall not be responsible for, and the Borrower’s
Reimbursement Obligations shall not be affected by, among other things, the validity or genuineness
of documents or of any endorsements thereon, even if such documents should in fact prove to be in
any or all respects invalid, fraudulent or forged, or any dispute between or among the Borrower,
the beneficiary of any Letter of Credit or any financing institution or other party to which any
Letter of Credit may be transferred or any claims or defenses whatsoever of the Borrower, against
the beneficiary of any Letter of Credit or any such transferee.

     (b) The Lender shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however transmitted, in connection
with any Letter of Credit. The Borrower agrees that any action taken or omitted by the Lender under
or in connection with each Letter of Credit and the related drafts and documents, if done in good
faith, shall be binding upon the Borrower and shall not result in any liability on the part of the
Lender to the Borrower.

     2A.5 Reliance by the Lender. To the extent not inconsistent with Section 2A.4, the Lender
shall be entitled to rely on and shall be fully protected in relying upon, any Letter of Credit,
draft, writing, resolution, notice, consent, certificate, affidavit, letter, electronic facsimile
transmission, cablegram, telegram, telecopy, telex or teletype message, statement, order or other
document believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel, independent accountants
and other experts selected by the Lender.

SECTION III

CONDITIONS OF LOANS AND LETTERS OF CREDIT

     3.1. Conditions Precedent to Initial Loans. The obligation of the Lender to make the initial
Loans and to issue the initial Letter of Credit is subject to the satisfaction of the following
conditions precedent on or prior to the Closing Date:

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     (a) The Lender shall have received the following agreements, documents, certificates and
opinions in form and substance satisfactory to the Lender and duly executed and delivered by the
parties thereto:

     (i) This Agreement;

     (ii) The Note, substantially in the form of Exhibit A hereto;

     (iii) The Security Documents;

     (iv) a UCC-l Financing Statement
covering the Collateral;

     (v) UCC-3 Termination Statements to terminate Encumbrances (other than Permitted Encumbrances)
of Persons ether than the Lender of record against the Collateral;

     (vi) Certificates of insurance or insurance binders evidencing compliance with Section 5.3
hereof and the applicable provisions of the Security Documents;

     (vii) Borrowing Base Report as of the Closing Date;

     (viii) A certificate of the Secretary or an Assistant Secretary of the Borrower with respect
to resolutions of its Board of Directors or other authorized Committee thereof, authorizing the
execution and delivery of the Loan Documents and identifying the officer(s) authorized to execute,
deliver and take all other actions required under this Agreement, and providing specimen signatures
of such officer(s);

     (ix) The Certificate of Incorporation of the Borrower and all amendments and supplements
thereto, as flied in the office of the Secretary of State of its jurisdiction of formation,
certified by said Secretary of State as being a true and correct copy thereof;

     (x) The By-laws of the Borrower and all amendments and supplements thereto, certified by the
Secretary or an Assistant Secretary of the Borrower as being a true and correct copy thereof;

     (xi) A certificate of the Secretary of State of the Borrower’s jurisdiction of incorporation
as to legal existence and good standing of the Borrower in such state;

     (xii) A certificate of the Secretaries of State of each state in which the Borrower is doing
business as to the due qualification and good standing of the Borrower as a foreign, corporation in
such states;

     (xiii) An opinion addressed to the Lender from Goodwin, Procter, LLP , counsel to the
Borrower;

     (xiv) A certificate of the chief financial officer of the Borrower as to the solvency of the
Borrower, the accuracy of the Borrower’s representations and warranties and such other matters
as the Lender may request;

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     (xv) A report in substantially the form of Exhibit D hereto signed on behalf of the Borrower
by its chief financial officer with respect to the financial statements required to be delivered
pursuant to Section 4.6; and

     (xvi) Such other documents, instruments, opinions and certificates, and completion of such
other matters, as the Lender may reasonably deem necessary or appropriate.

     (b) No litigation, arbitration, proceeding or investigation shall be pending or threatened
which questions the validity or legality of the transactions contemplated by any Loan Document or
seeks a restraining order, injunction or damages in connection therewith, or which, in the judgment
of the Lender, might adversely affect the transactions contemplated hereby or might have a
materially adverse affect on the assets, business financial condition or prospects of the Borrower.

     (c) All necessary filings and recordings against the Collateral shall have been completed and
the Lender’s liens on the Collateral shall have been perfected, as contemplated by the Security
Documents.

     (d) The Borrower shall have paid to the Lender all fees to be paid hereunder on or prior to
the Closing Date.

     3.2. Conditions Precedent to all Loans and Letters of Credit. The obligation of the Lender to
make any Loan, including the initial Loan, and to issue any Letter of Credit is further subject to
the following conditions:

     (a) Receipt by the Lender of a Borrowing Base Report, together with an Accounts Receivable
aging report and such other information regarding Accounts Receivable as the Lender may require,
all in form and substance satisfactory to the Lender, and the Notice of Borrowing with respect to
any Revolving Credit Loan or the Letter of Credit Application and Agreement with respect to any
Letter of Credit;

     (b) The Borrower shall have satisfied the conditions set forth in Sections 2.1 and 2A.l
hereof;

     (c) The outstanding Loans and Letters of Credit do not and, after giving effect to any
requested Loan or Letter of Credit, will not exceed the limitations set forth in Sections 2.1 and
2A.1(a) hereof;

     (d) The representations and warranties contained in Section IV shall be true and accurate in
all material respects on and as of the date of such Notice of Borrowing or Letter of Credit
Application and on the effective date of the making of each Loan or
issuance of each Letter of Credit as though made at and as of each such date (except to the
extent that such representations and warranties expressly relate to an earlier date);

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     (e) No Default or Event of Default shall have occurred and be continuing at the time of and
immediately after the making of such requested Loan or the issuance of such requested Letter of
Credit;

     (f) The resolutions referred to in Section 3.1 shall remain in full force and effect; and

     (g) No change shall have occurred in any law or regulation or interpretation thereof that, in
the reasonable opinion of counsel for the Lender, would make it illegal or against the policy of
any governmental agency or authority for the Lender to make Revolving Credit Loans hereunder or to
issue Letters of Credit hereunder (as the case may be).

     The making of each Loan and the issuance of each Letter of Credit shall be deemed to be a
representation and warranty by the Borrower on the date of the making of such Loan or the issuance
of such Letter of Credit as to the accuracy of the facts referred to in subsection (c) of this
Section 3.2 and of the satisfaction of all of the conditions set forth in this Section 3.2.

SECTION IV.

REPRESENTATIONS AND WARRANTIES

     In order to induce the Lender to enter into this Agreement and to make Loans and to issue
Letters of Credit hereunder, the Borrower represents and warrants to the Lender that except as set
forth on Exhibit C attached hereto:

     4.1. Organization; Qualification; Business.

     (a) Each of the Borrower and its Subsidiaries (all of which are listed in Exhibit C attached
hereto) (i) is a corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of formation, (ii) has all requisite power to own its property and conduct its
business as now conducted and as presently contemplated and (iii) is duly qualified and in good
standing as a foreign corporation and is duly authorized to do business in each jurisdiction (all
of which are listed on Exhibit C attached hereto) where the nature of its properties or business
requires such qualification, except where the failure to be so qualified would not have a material
adverse effect on the business, financial condition, assets or properties of the Borrower or of the
Borrower and its Subsidiaries taken as a whole.

     (b) Since the date of the Audited Financial Statement, the Borrower has continued to engage in
substantially the same business as that in which it was then engaged and is engaged in no unrelated
business.

     4.2. Corporate Authority; No Conflicts. The execution, delivery and performance of the Loan
Documents and the transactions contemplated thereby are within the power and authority of’ the
Borrower and have been authorized by all necessary corporate proceedings, and do not and will not
(a) contravene any provision of the Certificate of Incorporation or By-Laws of the Borrower or any
law, rule or regulation applicable to the Borrower, (b) contravene any provision of, or constitute
an event of default or event that, but for the requirement that time

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elapse or notice be given, or both, would constitute an event of default under, any other
agreement, instrument, order or undertaking binding on the Borrower, or (c) result in or require
the imposition of any Encumbrance on any of the properties, assets or rights of the Borrower,
except in favor of the Lender.

     4.3. Valid Obligations. The Loan Documents and all of their respective terms and provisions
are the legal, valid and binding obligations of the Borrower, enforceable in accordance with their
respective terms except as limited by bankruptcy, insolvency, reorganization, moratorium or other
laws affecting the enforcement of creditors’ rights generally, and except as the remedy of specific
performance or of injunctive relief is subject to the discretion of the court before which any
proceeding therefore may be brought. The Security Documents have effectively created in favor of
the Lender legal, valid and enforceable security interests in the Collateral and such security
interests are fully perfected first priority security interests.

     4.4. Consents or Approvals. The execution, delivery and performance of the Loan Documents and
the transactions contemplated herein do not require any approval or consent of, or filing or
registration with, any governmental or other agency or authority, or any other Person (including
without limitation any lessor or lessee of Borrower’s properties), except under or as contemplated
by the Security Documents.

     4.5. Title to Properties; Absence of Encumbrances. Each of the Borrower and its Subsidiaries
has good and marketable title to all of the properties, assets and rights of every name and nature
now purported to be owned by it, and good and valid leasehold title to all of the properties,
assets and rights of every name and nature now purported to be leased by it, including, without
limitation, such properties, assets and rights as are reflected in the Audited Financial Statements
(except such properties, assets or rights as have been disposed of in the ordinary course of
business since the date thereof), free from all Encumbrances except Permitted Encumbrances, and
free from all defects of title that might materially adversely affect such properties, assets or
rights, or Borrower’s or its
Subsidiaries’ operations conducted with respect thereto, taken as a whole. All material leases
under which Borrower or its Subsidiaries is the lessor or lessee are in full force and effect and
there are no existing defaults or events that with the giving of notice or passage of time or both
could ripen into defaults, by the Borrower or, to the Borrower’s knowledge, the lessor thereunder.
No third parties possess any rights with respect to any of Borrower’s or its Subsidiaries owned or,
to the Borrower’s knowledge, leased properties, the exercise of which would have a material adverse
effect on the Borrower or its Subsidiaries or their respective operations, taken as a whole. All
real property owned or leased by the Borrower (other than short-term residential rentals) is
described in Exhibit C hereto.

     4.6. Financial Statements; Indebtedness,

     (a) The Borrower has furnished to the Lender its audited consolidated financial statements for
the years ended March 31, 2006, March 31, 2005 and March 31, 2004 (the “Audited Financial
Statement”). All such financial statements are prepared in accordance with GAAP applied on a
consistent basis throughout the periods specified and present fairly the financial position of the
Borrower and its Subsidiaries as of such dates and the results of the

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operations of the Borrower and its Subsidiaries for such periods in all material respects. The
Borrower has also furnished to the Lender its pro forma consolidated balance sheet as of August 31,
2006 and projections of its future consolidated results of operations, all of which were reasonable
when made and continue to be reasonable at the date hereof.

     (b) At the date hereof, the Borrower has no Indebtedness or other material liabilities, debts
or obligations, whether accrued, absolute, contingent or otherwise, and whether due or to become
due, including, but not limited to, liabilities or obligations on account of taxes or other
governmental charges, that are not set forth on the Audited Financial Statement, on Exhibit C
hereto or accrued in the ordinary course of business consistent with past practices since the date
of the Audited Financial Statement.

     4.7. Changes. Since the date of the Audited Financial Statement, there have been no changes in
the assets, liabilities, financial, condition, business or prospects of the Borrower or any of its
Subsidiaries (including as a result of any applicable law or governmental regulation, ruling or
policy) other than changes in the ordinary course of business, the effect of which has not, in the
aggregate, been materially adverse to the Borrower and its Subsidiaries taken as a whole.

     4.8. Solvency. The Borrower has and, after giving effect to the Loans, will have, assets (both
tangible and intangible) having a fair saleable value in excess of the amount required to pay the
probable liability on its then-existing debts (whether matured or unmatured, liquidated or
unliquidated, fixed or contingent); the Borrower has and will have access to adequate capital for
the conduct of its business and the discharge of its debts incurred in connection therewith as such
debts mature; the Borrower was not
insolvent immediately prior to the making of the Loans and immediately after giving effect
thereto, the Borrower will not be insolvent.

     4.9. Defaults. As of the date of this Agreement, no Default exists.

     4.10. Taxes. The Borrower and its Subsidiaries have filed all federal, state and other tax
returns required to be filed, and all taxes, assessments and other governmental charges due from
any of them have been fully paid, except for such taxes, assessments or charges that are being
contested in good faith by appropriate proceedings and with respect to which (a) adequate reserves
have been established and are being maintained in accordance with GAAP and (b) no lien has been
filed to secure such taxes, assessments or charges. All such contests at the date hereof are
described on Exhibit C hereto. The Borrower and its Subsidiaries have not executed any waiver that
would have the effect of extending the applicable statute of limitations in respect of tax
liabilities. The federal and state income tax returns of the Borrower and its Subsidiaries have not
been audited or, to the best of the Borrower’s knowledge, otherwise examined by any federal or
state taxing authority. The Borrower and its Subsidiaries have established on their books reserves
adequate for the payment of all federal, state and other tax liabilities.

     4.11. Litigation. There is no litigation, arbitration, proceeding or investigation pending,
or, to the knowledge of the Borrower’s or any Subsidiary’s officers, threatened, against the
Borrower or any Subsidiary that, if adversely determined, may reasonably be expected to result in a
material judgment not fully covered by insurance, may reasonably be expected to result in a

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forfeiture of all or any substantial part of the property of the Borrower or its Subsidiaries, or
may reasonably be expected to have a material adverse effect on the assets, business or prospects
of the Borrower and its Subsidiaries taken as a whole.

     4.12. Subsidiaries. All the Subsidiaries of the Borrower are listed on Exhibit C hereto. The
Borrower (or any Subsidiary, if applicable) is the owner, free and clear of all Encumbrances, of
all of the issued and outstanding stock or other equity interest of each Subsidiary. All shares of
such stock or other equity interest held by the Borrower have been validly issued and are fully
paid and nonassessable, and no rights to subscribe to any additional shares have been granted, and
no options, warrants or similar rights are outstanding

     4.13. Investment Company Act. Neither the Borrower nor any of its Subsidiaries is subject to
regulation under the Investment Company Act of 1940, as amended.

     4.14. Compliance. The Borrower has all necessary permits, approvals, authorizations, consents,
variances, licenses, franchises, registrations and other rights and privileges (including patents,
trademarks, trade names and copyrights) to allow it to own and operate its business and properties
without any violation of laws, regulations, authorizations and orders of public authorities
(including without limitation
Environmental Laws) or the rights of others, except to the extent that any such violation
would not have a material adverse effect on the business, financial condition or operation of the
Borrower and its Subsidiaries taken as a whole. The Borrower and each Subsidiary are duly
authorized, qualified and licensed under, and the Borrower, its Subsidiaries and all real
properties owned or leased by them are in compliance with, all applicable laws, regulations,
authorizations and orders of public authorities, including, without limitation, Environmental Laws,
except to the extent that any such failure to be so authorized, qualified, licensed or in
compliance would not have a material adverse effect on the business, financial condition or
operation of the Borrower and its Subsidiaries taken as a whole. The Borrower and each Subsidiary
have performed all obligations required to be performed by it under, and is not in default under or
in violation of its Certificate of Incorporation or By-laws or any other agreement, lease,
mortgage, note, bond, indenture license or other instrument or undertaking to which it is a party
or by which any of it or any of its properties are bound, except for violations none of which,
either individually or in the aggregate, would have any material adverse effect on the business,
condition (financial or otherwise) or assets of the Borrower and its Subsidiaries taken as a whole.

     4.15. ERISA. The Borrower and its ERISA Affiliates are in compliance in all material respects
with ERISA and the provisions of the Code and the regulations and published interpretations
thereunder applicable to the Plans. No ERISA Event has occurred or is reasonably expected to occur,
including by reason of the consummation of the transactions contemplated by this Agreement that
when taken together with all other such ERISA Events, could reasonably be expected to result in
material liability to the Borrower or any of its ERISA Affiliates. None of the Plans had any
“unfunded benefit liabilities” (within the meaning of Section 4001(a)(18) of ERISA) as of the last
annual valuation dates applicable thereto.

24

 

     4.16. Environmental Matters.

     (a) The Borrower and each of its Subsidiaries are in compliance with the terms and conditions
of all permits, licenses and authorizations required under any Environmental Law, and are also in
compliance with all applicable orders, decrees, judgments and injunctions, issued, entered,
promulgated or approved under any Environmental Law, except to the extent failure to comply would
not have a material adverse effect on the business, financial condition or operations of the
Borrower and it Subsidiaries.

     (b) No written notice, notification, demand, request for information, citation, summons or
order has been issued and is outstanding, no complaint has been filed, no penalty has been assessed
and no investigation or review is pending or, to the best of the Borrower’s knowledge, threatened
by any governmental or other entity (i) with respect to any alleged failure by the Borrower or any
of its Subsidiaries to have any permit, license or authorization required in connection with the
conduct of its business or to comply with any Environmental Laws, except to the extent such failure
would not have a material adverse effect on the business, financial condition or operations of the
Borrower and its
Subsidiaries or (ii) regarding the presence of any Hazardous Material at, on or under any
property now or previously owned, or, to the Borrower’s knowledge, leased or used, by the Borrower
or any of its Subsidiaries or any other location to which Hazardous Materials generated or used by
the Borrower or any of its Subsidiaries from such property had been transported or which they have
been disposed of.

     (c) No material oral or written notification of a release of a Hazardous Material has been
filed by or on behalf of the Borrower or any of its Subsidiaries and no property now or previously
owned, or, to the Borrowers knowledge, leased or used, by the Borrower or any of its Subsidiaries
is listed or, to the best of the Borrower’s knowledge, proposed for listing on the National
Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended, or on any similar state list of sites requiring investigation or clean-up.

     (d) There are no Encumbrances arising under or pursuant to any Environmental Law on any of the
real property or properties owned, or, to the Borrower’s knowledge, leased or used, by the Borrower
or any of its Subsidiaries and no governmental actions have been taken or, to the best of the
Borrower’s knowledge, are in process which could subject any of such properties to such liens or
Encumbrances or, as a result of which the Borrower or any of its Subsidiaries would be required to
place any notice or restriction relating to the presence of Hazardous Materials at any property
owned by it in any deed to such property.

     (e) Neither the Borrower nor any of its Subsidiaries nor, to the best knowledge of the
Borrower, any previous owner, tenant, occupant or user of any property owned by the Borrower or any
of its Subsidiaries has (i) engaged in or permitted any operations or activities upon or any use or
occupancy of any owned, leased or used property, or any portion thereof, for the handling,
manufacture, treatment, storage, use, generation, release, discharge, refining, dumping or disposal
of any Hazardous Materials on, under, in or about such property, except to the extent commonly used
in day-to-day operations of such property and in such case only in compliance in all material
respects with all Environmental Laws, or (ii) transported any Hazardous Materials to, from or
across such property except to the extent commonly used in day-to-day operations of such property
and, in such case, in compliance in all material respects with, all Environmental

25

 

Laws; nor to the best knowledge of the Borrower have any Hazardous Materials migrated from other
properties upon, about or beneath such property, nor, to the best knowledge of the Borrower, are
any Hazardous Materials presently constructed, deposited, stored or otherwise located on, under, in
or about such property except to the extent commonly used in day-to-day operations of such property
and, in such case, in compliance in all material respects with all Environmental Laws.

     4.17. Restrictions on the Borrower. The Borrower is not party to or bound by any contract,
agreement or instrument, nor subject to any charter or other corporate restriction which will,
under current or foreseeable conditions, materially and adversely affect the business, property,
assets, operations or conditions, financial or otherwise of the Borrower or any of its
Subsidiaries.

     4.18. Labor Relations. There is (i) no unfair labor practice complaint pending against the
Borrower or any of its Subsidiaries or, to the best knowledge of the Borrower, threatened, before
the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or
under any collective bargaining agreement is so pending against the Borrower or any of its
Subsidiaries or, to the best knowledge of the Borrower, threatened, except for such complaints,
grievances and arbitration proceedings which, if adversely decided, would not have a material and
adverse effect on the condition (financial or otherwise), properties, business or results of
operations of the Borrower or any of its Subsidiaries, (ii) no strike, labor dispute, slowdown or
stoppage pending against the Borrower or any of its Subsidiaries or, to the best knowledge of the
Borrower, threatened against the Borrower or any of its Subsidiaries, except for any such labor
action as would not have a material and adverse effect on the condition (financial or otherwise)
properties, business or results of operations of the Borrower or any of its Subsidiaries and (iii)
to the best knowledge of the Borrower, no union representation question exists with respect to the
employees of the Borrower or any of its Subsidiaries and, to the best knowledge of the Borrower, no
union organizing activities are taking place, except for any such question or activities as would
not have a material and adverse effect on the condition (financial or otherwise), properties,
business or results of operations of the Borrower or any of its Subsidiaries.

     4.19. Trade Relations. There exists no actual or, to the best knowledge of the Borrower,
threatened termination, cancellation or limitation of, or any material modification or change in,
the business relationship between the Borrower or any of its Subsidiaries and any customer or any
group of customers whose purchases, individually or in the aggregate; are material to the business
of the Borrower and its Subsidiaries, taken as a whole, or with any material vendor, except in each
case, where the same could not reasonably be expected to have a material adverse effect on the
business, financial condition, assets or properties of the Borrower and its Subsidiaries, taken as
a whole.

     4.20. Margin Rules. The Borrower does not own or have any present intention of purchasing or
carrying, and no portion of any Loan shall be used for purchasing or carrying, any “margin
security” or “margin stock” as such terms are used in Regulations T, U or X of the Board of
Governors of the Federal Reserve System.

26

 

     4.21. Disclosure. No representation or warranty made by the Borrower in any Loan
Document and no document or information furnished to the Lender by or on behalf of or at the
request of the Borrower in connection with any of the transactions contemplated by the Loan
Documents contains any untrue statement of a material fact or omits to state any material fact
necessary in order to make the statements contained therein not misleading in light of the
circumstances in which they are made.

SECTION V

AFFIRMATIVE COVENANTS

     The Borrower covenants that so long as any Loan, Letter of Credit or other Obligation remains
outstanding or the Lender has any obligation to lend or to issue any Letter of Credit hereunder:

     5.1. Financial Statements. The Borrower shall furnish to the Lender:

     (a) As soon as available to the Borrower, but in any event within 120 days after the end of
each fiscal year commencing with the fiscal year ending March 31, 2007, the Borrower’s consolidated
and consolidating balance sheets as of the end of such fiscal year and related consolidated and
consolidating statements of income, retained earnings and cash flow for such year, prepared in
accordance with GAAP and audited and certified without qualification by the Borrower’s Accountants
in the case of such consolidated statements, and certified by the chief financial officer of the
Borrower in the case of such consolidating statements; and, concurrently with such financial
statements, a copy of the Borrower’s Accountants management report.;

     (b) As soon as available to the Borrower, but in any event within 45 days after the end of
each fiscal quarter, the Borrower’s consolidated and consolidating balance sheets as of the end of
and related consolidated and consolidating statements of income, retained earnings and cash flow
for, the fiscal quarter then ended and the portion of the year then ended prepared in accordance
with GAAP and certified by the chief financial officer of the Borrower, except for lack of
footnotes and subject to normal, recurring year-end adjustments that shall not in the aggregate be
material in amount;

     (c) Concurrently with the delivery of each financial statement pursuant to subsections (a) and
(b) of this Section 5.1, a covenant compliance report in substantially the form of Exhibit D hereto
signed on behalf of the Borrower by its chief financial officer;

     (d) Deleted;

     (e) So long as any Loan is outstanding, as soon as available, but in any event within 20 days
after the end of each month, and so long as no Loan is outstanding, as soon as available, but in
any event within 30 days after the end of each fiscal quarter, a Borrowing Base Report, together
with an Accounts Receivable aging report and such other information regarding Accounts Receivable
as the Lender may require;

27

 

     (f) As soon as available to the Borrower, but in any event within 90 days after the
beginning of each fiscal year, the Borrower’s projections for such fiscal year, prepared on a
quarterly basis and including consolidated balance sheets and statements of income, retained
earnings and cash flows;

     (g) Promptly after the receipt thereof by the Borrower, copies of any reports (including any
so-called management letters) submitted to the Borrower by independent public accountants in
connection with any annual or interim review of the accounts of’ the Borrower made by such
accountants;

     (h)Deleted; and

     (i) From time to time, such other financial data and information about the Borrower or its
Subsidiaries as the Lender may reasonably request.

     5.2. Conduct of Business. The Borrower and each of its Subsidiaries shall:

     (a) Duly observe and comply in all material respects with all laws, regulations, decrees,
orders, judgments and valid requirements of any governmental authorities applicable to its
corporate existence, rights and franchises, to the conduct of its business and to its property and
assets (including without limitation all Environmental Laws and ERISA), and shall maintain and keep
in full force and effect and comply in all material respects with all licenses and permits
necessary to the proper conduct of its business, except where the failure to comply in any instance
would not have a material adverse effect on the business, financial condition or operations of the
Borrower and its Subsidiaries taken as a whole; and

     (b) Maintain their existence (except to the extent permitted pursuant to Section 7.4) and
remain or engage substantially in the same business as that in which they are now engaged and in no
unrelated business.

     5.3 Maintenance and Insurance.

     (a) The Borrower and each of its Subsidiaries shall maintain their properties in good repair,
working order and condition, ordinary wear and tear and damage by fire or other casualty excepted,
as required for the normal conduct of their business.

     (b) The Borrower and each of its Subsidiaries shall at all times maintain liability and
casualty insurance on its properties (including all Collateral) with financially sound and
reputable insurers in such amounts and with such coverages, endorsements, deductibles and
expiration dates as the officers of the Borrower in the exercise of their reasonable judgment deem
to be adequate, as are customary in the industry for companies of established reputation engaged in
the same or similar business and owning or operating similar properties and as shall be reasonably
satisfactory to the Lender. The Lender shall be named as loss payee only with respect to any
insurance policy in Borrower’s name, additional insured and/or mortgagee under such insurance as
the Lender shall require from time to time, and the Borrower shall provide to the Lender lass
payable endorsements in form and substance reasonably satisfactory to the Lender. In addition, the
Lender shall be given thirty (30) days advance notice of any cancellation

28

 

of insurance. In the event of failure to provide and maintain insurance as herein provided, the
Lender may, at its option, provide such insurance and charge the amount thereof to the Borrower as
a Revolving Credit Loan. The Borrower shall furnish to the Lender certificates or other evidence
satisfactory to the Lender of compliance with the foregoing insurance provisions. The Lender shall
not, by the fact of approving, disapproving or accepting any such insurance, incur any liability
for the form or legal sufficiency of insurance contracts, solvency of insurance companies or
payment of law suits, and the Borrower hereby expressly assumes full responsibility therefore and
liability, if any, thereunder.

     5.4 Taxes. The Borrower shall pay or cause to be paid all taxes, assessments or governmental
charges on or against it or any of its Subsidiaries or its or their properties on or prior to the
time when they become due; except for any tax, assessment or charge that is being contested in good
faith by appropriate proceedings and with respect to which adequate reserves have been established
and are being maintained in accordance with GAAP if no Encumbrance shall have been flied to secure
such tax, assessment or charge.

     5.5. Inspection. The Borrower shall permit the Lender and its designees, at any reasonable
time and at reasonable intervals of time, and upon reasonable notice (or if a Default shall have
occurred and is continuing, at any time and without prior notice), to (i) visit and inspect the
United States properties of the Borrower and its Subsidiaries, (ii) examine and make copies of and
take abstracts from the United States books and records of the Borrower and its Subsidiaries, and
(iii) discuss the affairs, finances, and accounts of the Borrower and its Subsidiaries with their
appropriate officers, employees and independent accountants, all at the expense of the Borrower.
Without limiting the generality of the foregoing, the Borrower will permit reviews, at least once
annually (and semi-annually until such time as Borrower has provided audited fiscal financial
statements to Lender as required pursuant to Section 5.1 of this Agreement) and during any period
in which Loans have remained outstanding for at least thirty (30) days, of the United States books
and records of the Borrower and its Subsidiaries to be carried out at the Borrower’s expense by
commercial finance examiners (whether employed by the Lender or by third parties) designated by the
Lender. The Borrower shall also permit the Lender to arrange for verification of Accounts
Receivable, under reasonable procedures, directly with any account debtors or by other methods.

     5.6. Maintenance of Books and Records. The Borrower shall keep adequate books and records of
account, in which true and complete entries will be made reflecting all of its and its
Subsidiaries’ business and financial transactions in accordance with GAAP and applicable law.

     5.7. Use of Proceeds.

     (a) The Borrower will use the proceeds of Revolving Credit Loans solely for the working
capital needs of the Borrower, including the payment of the costs and expenses of the transactions
contemplated hereby.

     (b) No portion of any Loan shall be used for the “purpose of purchasing or carrying” any
“margin stock” or “margin security” as such terms are used in Regulations T, U and X of the Board
of Governors of the Federal Reserve System, or otherwise in violation of such regulations.

29

 

     5.8. Further Assurances. At any time and from time to time the Borrower shall execute and
deliver such further documents and take such further action as may reasonably be requested by the
Lender to affect the purposes of the Loan Documents.

     5.9. Notification Requirements. The Borrower shall furnish to the Lender:

     (a) Promptly upon becoming aware of the existence of any condition or event that constitutes a
Default, written notice thereof specifying the nature and duration, thereof and the action being or
proposed to be taken with respect thereto;

     (b) Promptly upon becoming aware of any litigation or of any investigative proceedings by a
governmental agency or authority commenced or threatened against the Borrower or any of its
Subsidiaries of which they have notice, the outcome of which would or might have a materially
adverse effect on the assets, business or prospects of the Borrower alone or the Borrower and its
Subsidiaries on a consolidated basis, written notice thereof and the action being or proposed to be
taken with respect thereto; and

     (c) Promptly after any occurrence or after becoming aware of any condition affecting the
Borrower or any Subsidiary which might constitute a material adverse change in or which might have
a material adverse effect on the business, properties or condition (financial or otherwise) of the
Borrower alone or the Borrower and its Subsidiaries, taken as a whole, written notice thereof.

     5.10. ERISA Compliance and Reports.

     (a) Each Plan shall comply in all material respects with ERISA and the Code, except to the
extent failure to comply in any instance would not have a material adverse effect on the business,
financial condition or operations of the Borrower and its Subsidiaries taken as a whole.

     (b) With respect to any Plan, the Borrower shall, or shall cause its ERISA Affiliates to
furnish to the Lender promptly as soon as possible and in any event within 10 days after the
Borrower or any of its ERISA Affiliates knows that any ERISA Event has occurred or expected to
occur, a statement of the chief financial officer of the Borrower describing such ERISA Event,
including copies of any notice concerning such ERISA Event received from the PBGC, a plan
administrator, or from a Multiemployer Plan sponsor, and the action, if any, the Borrower or such
ERISA Affiliate proposes to take with respect thereto promptly after the adoption of any Pension
Plan, the Borrower shall notify the Lender of such adoption.

     5.11. Environmental Compliance.

     (a) The Borrower and its Subsidiaries will comply in all material respects with all applicable
Environmental Laws in all jurisdictions in which any of them operates now or in the future, and the
Borrower and its Subsidiaries will comply in all material respects with all such Environmental Laws
that may in the future be applicable to the Borrower’s or any Subsidiary’s business, properties and
assets.

30

 

     (b) If the Borrower or any Subsidiary shall (i) receive notice that any material violation of
any Environmental Law may have been committed or is about to be committed by the Borrower or any
Subsidiary, (ii) receive notice that any administrative or judicial complaint or order has been
filed or is about to be filed against the Borrower or any Subsidiary alleging a material violation
of any Environmental Law requiring the Borrower or any Subsidiary to take any action in connection
with the release of Hazardous Materials into the environment, (iii) receive any notice from a
federal, state or local government agency or private party alleging that the Borrower or any
Subsidiary may be liable or responsible for any material amount of costs associated with a response
to or cleanup of a release of Hazardous Materials into the environment or any damages caused
thereby, (iv) become aware of any investigative action or proceedings by a governmental agency or
authority commenced or threatened against the Borrower or any of its Subsidiaries regarding any
potential violation of Environmental Laws or any spill, release, discharge or disposal of any
Hazardous Material or (v) notify any governmental agency or authority regarding any potential
violation of Environmental Laws or any spill, release, discharge or disposal of any Hazardous
Material by the Borrower or any Subsidiary, the Borrower shall promptly notify the Lender thereof
(together with a copy of any such notice) and of any action being or proposed to be taken with
respect thereto and thereafter shall continue to furnish to the Lender all further notices,
demands, reports and other information regarding the foregoing.

     5.12. Loss or Depreciation of Collateral. The Borrower shall, notify the Lender promptly of
the occurrence at any time of the following events if, individually or in the aggregate, the amount
involved in connection with such events exceeds $750,000.00: (i) rejection or return of any goods
or services giving rise to an Eligible Account to the extent such rejection or return is not in the
ordinary course of business, (ii) repossession, loss of or damage to any goods giving rise to any
Eligible Account; (iii) any request by an account debtor for credit, adjustment, set off or
counterclaim of or with respect to an Eligible Account; (iv) any adjustment by the Borrower of the
amount owing on an Eligible Account; (v) any goods, services or other dispute; (vi) any material
delay in the Borrower’s performance of any of its obligations to any customer if the Borrower has
an Eligible Account with such customer; and (vii) any other material event affecting Eligible
Accounts or the value or amount thereof, including without limitation any event which would result
in an Eligible Account no longer qualifying as an Eligible Account.

     5.13. Operating Accounts. Borrower shall continue to use Lender as the primary depository
bank for the Borrower’s United States-based operating accounts.

SECTION VI

FINANCIAL COVENANTS

     The Borrower covenants that so long as any Loan, Letter of Credit or other Obligation remains
outstanding, or the Lender has any obligation to make any Loan or issue any Letter of Credit
hereunder:

     6.1. Consolidated Tangible Net Worth. The Borrower shall at all times maintain a Consolidated
Tangible Net Worth of not less than (a) $45,000,000.00 as of March 31, 2006, and

31

 

(b) for each fiscal quarter thereafter, an amount equal to (i) the amount of Consolidated Tangible
Net Worth required to be maintained for the preceding fiscal quarter, plus (ii) 50.0% of
Consolidated Net Income for such preceding fiscal quarter (for purposes of this clause (ii), only
positive Consolidated Net Income shall be included and any net losses shall be disregarded).

     6.2. Cash Requirements.

     (a) The Borrower and Virtusa Securities Corporation shall at all times maintain aggregate cash
and cash equivalents in United States based accounts, or otherwise on hand in the United States, of
not less than $10,000,000.00, net of any outstanding Loans or Reimbursement Obligations.

     (b) The Borrower and its Subsidiaries shall at all times maintain cash and cash equivalents
including both foreign-based accounts and United States-based accounts of at least $15,000,000.00.

     (c) The Borrower and its Subsidiaries shall not at any time hold cash and cash equivalents in
foreign-based accounts, or otherwise on hand outside the United States, in excess of
$20,000,000.00.

     6.3 Maximum Net Loss. The Borrower and its Subsidiaries shall not incur (i) a consolidated net
loss in an amount greater than $1,250,000.00 (plus FAS123R charges) in any fiscal quarter, or (ii)
a consolidated net loss in any two consecutive fiscal quarters.

     6.4. Capital Expenditures. The Borrower shall not make aggregate Capital Expenditures equal to
or in excess of $7,500,000.00 during the fiscal year ending March 31, 2007 or any fiscal year
thereafter.

SECTION VII

NEGATIVE COVENANTS

     The Borrower covenants that so long as any Loan, Letter of Credit or other Obligation remains
outstanding or the Lender has any obligation to make any Loan or to issue any Letter of Credit
hereunder, without the prior written consent of the Lender:

     7.1. Indebtedness. Neither Borrower nor Virtusa Securities Corporation shall create, incur,
assume, guarantee or be or remain liable with respect to any Indebtedness other than the following:

     (a) Obligations;

     (b) Indebtedness existing as of the date of this Agreement and disclosed on Exhibit C hereto
but not any increase in the principal amounts thereof nor any renewals or refinancings thereof;

32

 

     (c) Indebtedness for taxes, assessments or governmental charges to the extent that payment
therefore shall at the time not be required to be made in accordance with Section 5.4;

     (d) Current trade liabilities on open account for the purchase price of services, materials
and supplies incurred by the Borrower in the ordinary course of business (not as a result of
borrowing), so long as all of such open account Indebtedness shall be promptly paid and discharged
when due or in conformity with customary trade terms and practices, except for any such open
account Indebtedness which is being contested in good faith by the Borrower, as to which adequate
reserves required by GAAP have been established and are being maintained and as to which no
Encumbrance has been placed on any property of the Borrower;

     (e) Intentionally Omitted;

     (f) Other Indebtedness incurred in the ordinary course of business and renewals and
refinancings thereof, provided that such Indebtedness does not exceed $1,000,000.00 in the
aggregate at any time outstanding; and

     (g) Guarantees permitted under Section 7.2 hereof.

     7.2. Contingent Liabilities. Neither the Borrower nor Virtusa Securities Corporation shall
create, incur, assume, guarantee or be or remain liable with respect to any Guarantees other than
(i) Guarantees existing on the date of this Agreement and disclosed on Exhibit C hereto, (ii)
Guarantees resulting from the endorsement of negotiable instruments for deposit or collection in
the ordinary course of business, (iii) Guarantees in an amount not to exceed $1,000,000.00 in the
aggregate at any time outstanding, and (iv) Guarantees of employee loans and obligations in an
amount not to exceed $1,000,000.00 in the aggregate at any time outstanding.

     7.3. Encumbrances. Neither the Borrower nor Virtusa Securities Corporation shall create,
incur, assume or suffer to exist any mortgage, pledge, security interest, lien or other charge or
encumbrance of any kind, including the lien or retained security title of a conditional vendor,
upon or with respect to any of its property or assets (“Encumbrances”), or assign or otherwise
convey any right to receive income, including the sale or discount of Accounts Receivable with or
without recourse, except the following (“Permitted Encumbrances”):

     (a) Encumbrances in favor of the Lender to secure Obligations;

     (b) Encumbrances existing as of the date of this Agreement and disclosed in Exhibit C hereto;

     (c) Intentionally Omitted;

     (d) Encumbrances securing Indebtedness to the extent such Indebtedness is permitted by Section
7.1(f);

     (e) Liens for taxes, fees, assessments and other governmental charges to the extent that
payment of the same may be postponed or is not required in accordance with the provisions of
Section 5.4;

33

 

     (f) Landlords’ and lessors’ liens in respect of rent not in default or liens in respect of
pledges or deposits under workmen’s compensation, unemployment insurance, social security laws, or
similar legislation (other than ERISA) or in connection with appeal and similar bonds incidental to
litigation; mechanics’, warehouseman’s, laborers’ and materialmen’s and similar liens, if the
obligations secured by such liens are not then delinquent; liens securing the performance of bids,
tenders, contracts (other than for the payment of money); and liens securing statutory obligations
or surety, indemnity, performance or other similar bonds incidental to the conduct of the
borrower’s or a Subsidiary’s business in the ordinary course and that do not in the aggregate
materially detract from the value of its property or materially impair the use thereof in the
operation of its business;

     (g) Judgment liens securing judgments that (i) are not fully covered by insurance, and (ii)
shall not have been in existence for a period longer than 30 days after the creation thereof or, if
a stay of execution shall have been obtained, for a period longer than 30 days after the expiration
of such stay;

     (h) Rights of lessors under capital leases to the extent such capital leases are permitted
hereunder;

     (i) Easements, rights of way, restrictions and other similar charges or Encumbrances relating
to real property and not interfering in a material way with the ordinary conduct of the Borrower’s
business; and

     (j) Liens constituting a renewal, extension or replacement of any Permitted Encumbrance.

     7.4. Merger: Purchase. Sale or Lease of Assets; Reorganization; Liquidation.

     (a) The Borrower and its Subsidiaries shall not:

          (i) Acquire the capital stock or other equity interests or all or substantially all of the
assets of another Person, whether or not involving a merger or consolidation with such other
Person, unless (w) such other Person is in substantially the same field of business as the Borrower
and substantially all of the assets acquired in such acquisition are used or useful to the business
of the Borrower by the Borrower, (x) the total purchase price far any single acquisition does not
exceed $4,000,000.00 (unless a greater amount is consented to by the Lender), (y) if a merger, the
Borrower or one of its Subsidiaries is the survivor of such merger and (z) both immediately before
and after giving effect to such acquisition, no Default shall exist;

          (ii) Merge or consolidate into or with any other Person, or commence a reorganization, other
than (x) a merger of any Subsidiary with and into the Borrower, with the Borrower as the survivor
of such merger, (y) a merger or consolidation into or with another Person, or a reorganization, in
each case, where the holders of more than 50.0% of the ordinary voting power for the election of a
majority of the members of the board of directors of the Borrower prior to such transaction retain
such power after the transaction, or (z) a merger
permitted by Section 7.4(a)(i) above; or

34

 

          (iii) Liquidate or dissolve, except that any wholly-owned Subsidiary may liquidate or
dissolve.

     (b) The Borrower shall not sell, lease (as lessor) or otherwise dispose of any assets or
properties, other than sales of Qualified investments and inventory and obsolete or worn out
equipment, in each case in the ordinary course of business and consistent with past practices.

     7.5. Subsidiaries. The Borrower shall not permit any of its Subsidiaries to issue any
additional shares of its capital stock or other equity securities, any options therefore or any
securities convertible thereto, other than to the Borrower. Neither the Borrower nor any of its
Subsidiaries shall sell, transfer or otherwise dispose of any of the capital stock or other equity
securities of a Subsidiary, except to the Borrower or any of its wholly-owned subsidiaries.

     7.6. Restricted Payments. The Borrower shall not pay, make, declare or authorize any
Restricted Payment other than:

     (a) Compensation paid to employees, officers and directors in the ordinary course of business
and consistent with prudent business practices;

     (b) Dividends payable solely in common stock;

     (c) Dividends paid by any Subsidiary to the Borrower; and

     (d) Redemptions of shares of capital stock of the Borrower which are “restricted securities”
(as defined in Rule 144 promulgated under the Securities Act of 1933) in an amount not to exceed
5.0% of the aggregate total voting stock of the Borrower issued and outstanding on a fully diluted
basis.

     7.7. Investments; Purchases of Assets. The Borrower shall not make or maintain any Investments
or purchase or otherwise acquire any material amount of assets other than:

     (a) Investments existing on the date hereof in Subsidiaries;

     (b) Qualified Investments; 

     (c) Capital Expenditures to the extent
permitted by Section 6.4;

     (d) Normal trade credit extended in the ordinary course of business and consistent with
prudent business practice;

     (e) Advances to employees for business related expenses to be incurred in the ordinary course
of business and consistent with past practices in an amount not to exceed $500,000.00 in the
aggregate outstanding at any one time, provided that advances to any single employee shall not
exceed $50,000.00 in the aggregate;

35

 

     (f) Investments in any Subsidiary of the Borrower in the ordinary course of business or any
other investment in a Subsidiary which does not exceed $10,000,000 in the aggregate; and

     (g) Loans to any Person (including employees) not in the ordinary course of business not to
exceed $300,000.00 in the aggregate outstanding at any one time.

     7.8. ERISA Compliance. Neither the Borrower nor any of its ERISA Affiliates nor any Plan shall
(i) engage in any Prohibited Transaction which would have a material adverse effect on the
business, financial condition or operations of the Borrower and its Subsidiaries taken as a whole,
(ii) incur any “accumulated funding deficiency” (within the meaning of Section 412(a) of the Code
and Section 302 of ERISA), whether or not waived, (iii) permit to exist any material amount of
“unfunded benefit liabilities” (within the meaning of Section 4001.(a)(1 8) of ERISA), (iv)
terminate any Pension Plan in a manner which could result in the imposition of a lien on any
property of the Borrower or any of its Subsidiaries, (v) fail to make any required contribution to
any Multiemployer Plan or (vi) completely or partially withdraw from a Multiemployer Plan if such
complete or partial withdrawal will result in any material withdrawal liability under Title IV of
ERISA.

     7.9. Transactions with Affiliates. Except as otherwise provided herein, the Borrower will not
directly or indirectly, enter into any purchase, sale, lease or other transaction with any
Affiliate except (i) transactions in the ordinary course of business on terms that are no less
favorable to the Borrower than those which might be obtained at the time in a comparable arm’s
length transaction with any Person who is not an Affiliate, including without limitation, any
transfer pricing, service fee or similar agreements between or among Borrower and its Affiliates,
(ii) employment contracts with senior management of the Borrower entered into in the ordinary
course of business and consistent with prudent business practices and (iii) for the avoidance of
doubt, transactions relating to Restricted Payments permitted under Section 7.6. Notwithstanding
the foregoing, the Borrower will not directly or indirectly, pay any management, consulting,
overhead, indemnity, guarantee or other similar fee or charge to any Affiliate; and

     7.10. Fiscal Year. The Borrower and its Subsidiaries shall not change their March 31 fiscal
year ends without the prior written consent of the Lender.

SECTION VIII

DEFAULTS

     8.1. Events of Default. There shall be an Event of Default hereunder if any of the following
events occurs:

     (a) The Borrower or any Subsidiary shall fail to pay any principal of any Loan, any
Reimbursement Obligation or any interest, fees or other amounts owing by it under any Loan Document
or in respect of any Obligation when the same shall become due and payable, whether at maturity or
at any accelerated date of maturity or at any other date fixed for payment; or

36

 

     (b) The Borrower or any Subsidiary shall fail to perform or comply with any term., covenant or
agreement applicable to it contained in Sections 5.1,5.2(b), 5.5, 5.6, 5.7, 5.9, 5.11, 6 and 7 of
this Agreement; or

     (c) The Borrower or any Subsidiary shall fail to perform or comply with any term, covenant or
agreement applicable to it (other than as specified in subsections 8,1(a) or (b) hereof) contained
in this Agreement or any other Loan Document and such default shall continue for ten (10) Business
Days; or

     (d) Any representation or warranty of the Borrower made in this Agreement or any other Loan
Document or in any certificate, notice or other writing delivered hereunder or thereunder shall
prove to have been false in any material respect upon the date when made or deemed to have been
made; or

     (e) The Borrower or any of its Subsidiaries shall fail to pay when due (after any applicable
period of grace) any amount payable (i) under any Indebtedness exceeding $500,000.00 in principal
amount or (ii) under any agreement for the use a real or personal property requiring aggregate
payments in excess of $500,000.00 in any twelve month period, or fail to observe or perform any
term, covenant or agreement evidencing or securing such indebtedness or relating to such agreement
for the use of real or personal property; or

     (f) The Borrower or any of its Subsidiaries shall (i) apply for or consent to the appointment
of or the taking of possession by, a receiver, custodian, trustee, liquidator or similar official
of itself or of all or a substantial part of its property, (ii) be generally not paying its debts
as such debts become due, (iii) make a general assignment for the benefit of its creditors, (iv)
commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect),
(v) take any action or commence any case or proceeding under any law relating to bankruptcy,
insolvency, reorganization, winding-up or composition or adjustment of debts, or any other law
providing for the relief of debtors, (vi) fail to contest in a timely or appropriate manner, or
acquiesce in writing to, any petition filed against it in an involuntary case under the United
States Bankruptcy Code or other law, or (vii) take any corporate action for the purpose of
effecting any of the foregoing; or

     (g) A proceeding or case shall be commenced against the Borrower or any of its
Subsidiaries, without the application or consent of such Borrower or such Subsidiary in any court
of competent jurisdiction, seeking (i) the liquidation, reorganization, dissolution, winding up, or
composition or readjustment of its debts, (ii) the appointment of a trustee, receiver, custodian,
liquidator or the like of it or of all or any substantial part of its assets, or (iii) similar
relief in respect of it, under any law relating to bankruptcy, insolvency, reorganization,
winding-up or composition or adjustment of debts or any other law providing for the relief of
debtors, and such proceeding or case shall continue undismissed, or unstayed and in effect, for a
period of 30 days; or an order for relief shall be entered in an involuntary case under the Federal
Bankruptcy Code, against the Borrower or such Subsidiary; or action under the laws of the
jurisdiction of incorporation or organization of the Borrower or any of its Subsidiaries similar to
any of the foregoing shall be taken with respect to the Borrower or such Subsidiary and shall
continue unstayed and in effect for a period of 45 days; or

37

 

     (h) A judgment or order for the payment of money shall be entered against the Borrower or any
of its Subsidiaries by any court, or a warrant of attachment or execution or similar process shall
be issued or levied against property of the Borrower or such Subsidiary, that in the aggregate
exceeds $500,000.00 in value, the payment of which is not fully covered by insurance in excess of
any deductibles not exceeding $50,000.00 in the aggregate, and such judgment, order, warrant or
process shall continue undischarged or unstayed for 30 days; or

     (i) There shall occur a cessation of a substantial. part of the business of the Borrower for a
period which materially adversely affects Borrower’s capacity to continue its business on a
profitable basis; or the Borrower shall suffer the loss or revocation of any material license or
permit now held or hereafter acquired which is necessary to the continued or lawful operation of
its business; or Borrower shall be enjoined, restrained or in any other way prevented by a court,
governmental or administrative order from conducting all or any material part of its business; or

     (j) The Borrower or any ERISA Affiliate shall fail to pay when due any material amount that
they shall have become liable to pay to the PBGC or to a Plan under Title IV of ERISA, unless such
liability is being contested in good faith by appropriate proceedings, the Borrower or the ERISA
Affiliate, as the case may be, has established and is maintaining adequate reserves in accordance
with GAAP and no lien shall have been filed to secure such liability; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to
administer any such Plan or Plans; or a condition shall exist by reason of which the PBGC would be
entitled to obtain a decree adjudicating that any such Plan or Plans must be terminated; or

     (k) Any of the Loan Documents shall be canceled, terminated, revoked or rescinded otherwise
than in accordance with the express terms thereof or with the express prior written agreement,
consent or approval of the Lender, or any action at law or in equity or other legal proceeding to
cancel, revoke or rescind any Loan Document shall be commenced by or on behalf of the Borrower, or
any court or other governmental or regulatory authority or agency of competent jurisdiction shall
make a determination that, or shall issue a judgment, order, decree or ruling to the effect that,
any one or mare of the Loan Documents is illegal, invalid or unenforceable in accordance with the
terms thereof, or any Encumbrance in favor of the Lender created under any of the Loan Documents
shall at any time (other than by reason of the Lender relinquishing such Encumbrance) cease in any
material respect to constitute a valid and, to the extent applicable, perfected Encumbrance on any
material portion of the Collateral.

     8.2 Remedies. Upon the occurrence of an Event of Default described in subsections 8.1(f) and
(g), immediately and automatically, and upon the occurrence of any other Event of Default, at any
time thereafter while such Event of Default is continuing, at the option of the Lender and upon the
Lender’s declaration:

     (a) The obligation of the Lender to make any further Loans and to issue any Letters of Credit
hereunder shall terminate;

38

 

     (b) The unpaid principal amount of the Loans together with accrued interest, all
Reimbursement Obligations and all other Obligations shall become immediately due and payable
without presentment, demand, protest or further notice of any kind, all of which are hereby
expressly waived;

     (c) The Borrower shall immediately pledge to Lender cash collateral in an amount determined by
Lender to be sufficient to fully secure any Obligations of Borrower to Lender with respect to any
issued Letters of Credit; and

     (d) The Lender may exercise any and all rights it has under this Agreement, the other Loan
Documents or at law or in equity, and proceed to protect and enforce its rights by any action at
law or in equity or by any other appropriate proceeding.

     No remedy conferred upon the Lender in the Loan Documents is intended to be exclusive of any
other remedy, and each and every remedy shall be cumulative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law or in equity or by statute or by any
other provision of law. Without limiting the generality of the foregoing or of any of the terms and
provisions of any of the Security Documents, if and when the Lender exercises remedies under the
Security Documents with respect to Collateral, the Lender may, in its sole discretion, determine
which items and types of Collateral to dispose of and in what order and may dispose of Collateral
in any order the Lender shall select in its sole discretion, and the Borrower consents to the
foregoing and waives all rights of marshalling with respect to all Collateral.

SECTION IX

ASSIGNMENT AND PARTICIPATJON

     9.1. Assignment.

     (a) Citizens shall have the right to assign at any time any portion of its Commitment
hereunder and its interests in the risk relating to any Loans to other banks or financial
institutions (each an “Assignee”) and to furnish from time to time to prospective Assignees copies
of the Loan Documents and any information concerning the Borrower in its possession, provided that
if no Default or Event of Default shall have occurred and be continuing, each Assignee which is not
an Affiliate of Citizens or a Federal Reserve Bank shall be subject to prior approval by the
Borrower (such approval not to be unreasonably withheld, conditioned or delayed). Each Assignee
shall execute and deliver to Citizens and the Borrower a joinder agreement. Upon the execution and
delivery of such joinder agreement, (a) such Assignee shall, on the date and to the extent provided
in such joinder agreement, become a “Lender” party to this Agreement and the other Loan Documents
for all purposes of this Agreement and the other Loan Documents and shall have all rights and
obligations of a “Lender” with a Commitment as set forth in such joinder agreement, and Citizens
shall, on the date and to the extent provided in such joinder agreement, be released prospectively
from its obligations hereunder and under the other Loan Documents to a corresponding extent (and,
in the case of an assignment covering all of the remaining portion of Citizens’ rights and
obligations under this Agreement, Citizens shall cease

39

 

to be a party hereto but shall continue to be entitled to the benefits of Section 10.3 and to any
fees accrued for its account hereunder and not yet paid); (b) the assigning Lender, if it holds the
Note, shall promptly surrender the Note to the Borrower for cancellation, provided that if Citizens
has retained any Commitment, the Borrower shall execute and deliver to Citizens a new Note in the
amount of its retained Commitment; (c) the Borrower shall issue to such Assignee a Note in the
amount of such Assignee’s Commitment, dated the Closing Date or such other date as may be specified
by such Assignee and otherwise completed in substantially the form of Exhibit A (d) this Agreement
shall be deemed appropriately amended to reflect (i) the status of such Assignee as a party hereto
and (ii) the status and rights of the Lender hereunder; and (e) the Borrower shall take such action
as Citizens may reasonably request to perfect any security interests or mortgages in favor of the
Lender, including any Assignee which becomes a party to this Agreement.

     (b) If the Assignee, or any Participant pursuant to Section 9.2 hereof; is organized under the
laws of a jurisdiction other than the United States or any state thereof: such Assignee shall
execute and deliver to the Borrower, simultaneously with or prior to such Assignee’s execution and
delivery of the counterpart joinder described above in Section 9.1(a), and such Participant shall
execute and deliver to the Lender granting the participation, a United Stares Internal Revenue
Service Form W 8EC1 or W 8BEN (or any successor form), appropriately completed, wherein such
Assignee or Participant claims entitlement to complete exemption from United States Federal
Withholding Tax on all interest payments hereunder and all fees payable pursuant to any of the Loan
Documents, The Borrower shall not be required to pay any increased amount to any Assignee or other
Lender on account of taxes to the extent such taxes would not have been payable if the Assignee or
Participant had furnished one of the Forms referenced in this Section 9.1(b) unless the failure to
furnish such a Form results from (i) a condition or event affecting the Borrower or an act or
failure to act of the Borrower or (ii) the adoption of or change in any law, rule, regulation or
guideline affecting such Assignee or Participant occurring (x) after the date on which any such
Assignee executes and delivers the counterpart joinder, or (y) after the date such Assignee shall
otherwise comply with the provisions of Section 9.1(a), or (z) after the date a Participant is
granted its participation.

     (c) The Lender may at any time pledge all or any portion of its rights under the Loan
Documents, including any portion of the Note, to any of the twelve (12) Federal Reserve Banks
organized under Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341. No such pledge or any
enforcement thereof shall release the Lender from its obligations under any of the Loan Documents.

     9.2. Participations. The Lender shall have the right at any time and from time to time,
without the consent of or notice to the Borrower, to grant participations to one or more banks or
other financial institutions (each a “Participant”) in all or any part of any Loans and Letter of
Credit Participations owing to the Lender and the Note held by the Lender, and shall have the right
to furnish from time to time to prospective Participants copies of the Loan Documents and any
information concerning the Borrower in its possession. The Lender shall retain the sole right to
approve, without the consent of any Participant, any amendment, modification or waiver of any
provision of the Loan Documents, provided that the documents evidencing any such participation may
provide that, except with the consent of such Participant, the Lender will not

40

 

consent to (a) the reduction in or forgiveness of the stated principal of or rate of interest on or
commitment fee with respect to the portion of any Loan subject to such participation, (b) the
extension or postponement of any stated date fixed for payment of principal or interest or
commitment fee with respect to the portion of any Loan subject to such participation, (a) the
waiver or reduction of any right to indemnification o the Lender hereunder, or (d) except as
otherwise permitted hereunder, the release of any Collateral. Notwithstanding the foregoing, no
participation shall operate to increase the total Commitments hereunder or otherwise alter the
substantive terms of this Agreement. In the event of any such sale by the Lender of participating
interests to a Participant, the Lender’s obligations under this Agreement shall remain unchanged,
the Lender shall remain solely responsible for the performance thereof; the Lender shall remain the
holder of such Note for all purposes under this Agreement and the Borrower shall continue to deal
solely and directly with the Lender in connection with the Lender’s rights and obligations under
this Agreement.

SECTION X.

GENERAL

     10.1. Notices. Unless otherwise specified herein, all notices hereunder to any party hereto
shall be in writing and shall be deemed to have been given when delivered by hand, or when sent by
electronic facsimile transmission, or on the first Business Day after delivery to any overnight
delivery service, freight pre-paid, or five (5) days after being sent by certified or registered
mail, return receipt requested, postage pre-paid, and addressed to such party at its address
indicated below:

If to the Borrower, at

2000 West Park Drive

Westborough, Massachusetts 01581

Attention: Chief Financial Officer

Facsimile: (508) 366-9901

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

Goodwin Procter

Exchange Place

Boston, Massachusetts 02109

Attention: John J. Egan III, PC.

Facsimile: (617)                     

If to the Lender, at

53 State Street, 8th Floor

Boston, Massachusetts 02109

Attention: Sharon Stone

Facsimile: (617) 742-9548

41

 

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

Bartlett Hackett Feinberg, P.C. 

155 Federal Street 

Boston, Massachusetts 02110

Attention: John L. Hackett, Esq.

Facsimile: (617) 422-0200

or at any other address specified by such parry in writing.

     10.2. Expenses. Whether or not the transactions contemplated herein shall be consummated, the
Borrower promises to reimburse the Lender for all reasonable out-of-pocket fees and disbursements
(including all reasonable attorneys’ fees and collateral evaluation costs) incurred or expended in
connection with the preparation, filing or recording, interpretation or administration of this
Agreement and the other Loan Documents, or any amendment, modification, approval, consent or waiver
hereof or thereof, or in connection with the enforcement of any Obligations, the exercise,
preservation or enforcement of any rights, remedies or options of the Lender or the satisfaction of
any Obligations, or in connection with any litigation, proceeding or dispute in any way related to
the credit hereunder, including, without limitation, fees and disbursements of outside legal
counsel and the allocated costs of in house legal counsel, accounting, consulting, brokerage or
other similar professional fees or expenses; all fees, charges (including the Lender’s per diem
charges) and expenses relating to any inspections, appraisals or examinations conducted in
connection with the Loans or any Collateral; and all costs and expenses relating to any attempt to
inspect, verify, protect, preserve, restore, collect, sell, liquidate or otherwise dispose of or
realize upon the Collateral, The amount of all such costs and expenses shall, until paid, bear
interest at the rate applicable to Revolving Credit Loans and shall be an Obligation secured by the
Collateral. The Borrower will pay any taxes (including any interest and penalties in respect
thereof), other than the Lender’s federal and state income taxes, payable on or with respect to the
transactions contemplated by the Loan Documents (the Borrower hereby agreeing to indemnify the
Lender with respect thereto).

     10.3. Indemnification. The Borrower agrees to indemnify and hold harmless the Lender, as well
as its respective shareholders, directors, officers, agents, attorneys, subsidiaries and
affiliates, from and against all damages, losses, settlement payments, obligations, liabilities,
claims, suits, penalties, assessments, citations, directives, demands, judgments, actions or causes
of action, whether statutorily created or under the common law, all reasonable costs and expenses
(including, without limitation, reasonable fees and disbursements of attorneys, experts and
consultants) and all other liabilities whatsoever (including, without limitation, liabilities under
Environmental Laws) which shall at any time or times be incurred, suffered, sustained or required
to be paid by any such indemnified Person (except any of the foregoing which result from the gross
negligence or willful misconduct of the indemnified Person) on account of or in relation to or any
way in connection with any of the arrangements or transactions contemplated by, associated with or
ancillary to this Agreement, the other Loan Documents or any other documents executed or delivered
in connection herewith or therewith, all as the same may be amended from time to time, or with
respect to any Letters of Credit, whether or not all or part of

42

 

the transactions contemplated by, associated with or ancillary to this Agreement, any of the other
Loan Documents or any such other documents are ultimately consummated. In any investigation,
proceeding or litigation, or the preparation therefore, the Lender shall select its own counsel
and, in addition to the foregoing indemnity, the Borrower agrees to pay promptly the reasonable
fees and expenses of such counsel. In the event of the commencement of any such proceeding or
litigation, the Borrower shall be entitled to participate in such proceeding or litigation with
counsel of its choice at its own expense, provided that such counsel shall be reasonably
satisfactory to the Lender. The Borrower authorizes the Lender to charge any deposit account or
Note Record which it may maintain with any of them for any of the foregoing. The covenants of this
Section 10.3 shall survive payment or satisfaction of payment of all amounts owing with respect to
the Note, any other Loan Document or any other Obligation.

     10.4. Survival of Covenants. Etc. All covenants, agreements, representations and warranties
made herein, in the other Loan Documents or in any documents or other papers delivered by or on
behalf of the Borrower pursuant hereto or thereto shall be deemed to have been relied upon by the
Lender, notwithstanding any investigation heretofore or hereafter made by it, and shall survive the
making by the Lender of the Loans as herein contemplated and the termination of the Commitment, and
shall continue in full force and effect so long as any Obligation remains outstanding and unpaid or
the Lender has any obligation to make any Loans hereunder or has any obligation to issue any Letter
of Credit. Notwithstanding the foregoing, the provisions of Sections 10.2 and 10.3 shall continue
in full force and effect after the payment in full of all Obligations. All statements contained in
any certificate or other writing delivered by or on behalf of the Borrower pursuant hereto or the
other Loan Documents or in connection with the transactions contemplated hereby shall constitute
representations and warranties by the Borrower hereunder.

     10.5. Set-Off. Regardless of the adequacy of any Collateral or other means of obtaining
repayment of the Obligations, any deposits, balances or other sums credited by or due from the head
office of the Lender or any of its branch offices to the Borrower may, at any time and from time to
time without notice to the Borrower or compliance with any other condition precedent now or
hereafter imposed by statute, rule of law, or otherwise (all of which are hereby expressly waived)
be set off, appropriated, and applied by the Lender against any and all Obligations of the Borrower
in such manner as the head office of the Lender or any of its branch offices in its sole discretion
may determine, and the Borrower hereby grants the Lender a continuing security interest in such
deposits, balances or other sums for the payment and performance of all such Obligations.

     ANY AND ALL RIGHTS TO REQUIRE THE LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO
ANY OTHER COLLATERAL, WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHTS OF SETOFF WITH
RESPECT TO SUCH DEPOSITS, BALANCES, OTHER SUMS AND PROPERTY OF THE
BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

     10.6. No Waivers. No failure or delay by the Lender in exercising any right, power or
privilege hereunder, under the Note or under any other Loan Document shall operate as a waiver

43

 

thereof; nor shall any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. No waiver shall extend to or affect
any Obligation not expressly waived or impair any right consequent thereon. No course of dealing or
omission on the part of the Lender in exercising any right shall operate as a waiver thereof or
otherwise be prejudicial thereto. No notice to or demand upon the Borrower shall entitle the
Borrower to other or further notice or demand in similar or other circumstances. The rights and
remedies herein and in the Note and the other Loan Documents are cumulative and not exclusive of
any rights or remedies otherwise provided by agreement or law.

     10.7. Amendments, Waivers, etc. Neither this Agreement nor the Note nor any other Loan
Document nor any provision hereof or thereof may be amended, waived, discharged or terminated
except by a written instrument signed by the Lender and also, in the case of amendments, by the
Borrower.

     10.8. Binding Effect of Agreement. This Agreement shall be binding upon and inure to the
benefit of the Borrower, the Lender and their respective successors and assignees provided that the
Borrower may not assign or transfer its rights or obligations hereunder.

     10.9. Lost Note, Etc. Upon receipt of an affidavit of an officer of the Lender as to the loss,
theft, destruction or mutilation of the Note or any Security Document which is not a public record
and, in the case of any such loss, theft, destruction or mutilation, upon cancellation of such Note
or Security Deposit, if available, the Borrower will issue, in lieu thereof, a replacement Note or
other Security Document in the same principal amount thereof and otherwise of like tenor.

     10.10. Captions; Counterparts. The captions in this Agreement are for convenience of reference
only and shall not define or limit the provisions hereof. This Agreement and any amendment hereof
may be executed in several counterparts and by each party on a separate counterpart, each of which
when so executed and delivered shall be an original, but all of which together shall constitute one
instrument. In proving this Agreement it shall not be necessary to produce or account for mare than
one such counterpart signed by the party against whom enforcement is sought.

     10.11. Entire Agreement. Etc. The Loan Documents and any other documents executed in
connection herewith or therewith express the entire understanding of the parties with respect to
the transactions contemplated hereby and supersede all prior agreements with respect to the subject
matter hereof.

     10.12. Waiver of Jury Trial. EACH OF THE BORROWER, THE LENDER HEREBY WAIVES ITS RIGHT TO A
JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS
AGREEMENT, THE NOTES OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS OR ANY COURSE
OF CONDUCT, COURSE OF
DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT
LIMITATION, ANY COURSE OF CONDUCT, COURSE

44

 

OF DEALINGS, STATEMENTS OR ACTIONS OF THE LENDER RELATING TO THE ADMIMSTRATION OR ENFORCEMENT OF
THE LOANS AND THE LOAN
DOCUMENTS, AND AGREES THAT IT WILL NOT SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN
WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, EACH OF THE
BORROWER AND THE LENDER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION
REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR
ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE BORROWER (a) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE
LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (b)
ACKNOWLEDGES THAT THE LENDER HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS TO WHICH EACH IS A PARTY BECAUSE OF, AMONG OTHER THINGS, THE BORROWER’S WAIVERS AND
CERTIFICATIONS CONTAINED HEREIN.

     10.13. Governing Law; Jurisdiction; Venue. THIS AGREEMENT AND EACH OF THE OTHER LOAN
DOCUMENTS ARE CONTRACTS UNDER THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS AND SHALL FOR ALL
PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID COMMONWEALTH (EXCLUDING
THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW). THE BORROWER CONSENTS TO THE JURISDICTION OF
ANY OF THE FEDERAL OR STATE COURTS LOCATED IN SUFFOLK COUNTY IN THE COMMONWEALTH OF MASSACHUSETTS
TN CONNECTION WITH ANY SUIT TO ENFORCE THE RIGHTS OF THE LENDER UNDER THIS AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS AND CONSENTS TO SERVICE OP PROCESS IN ANY SUCH SUIT BEING MADE UPON THE
BORROWER BY MAIL AT THE BORROWER’S ADDRESS SET FORTH HEREIN. THE BORROWER IRREVOCABLY WAIVES ANY
OBJECTION IN WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH ACTION BROUGHT
IN THE COURTS REFERRED TO IN THIS SECTION AND IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM
IN ANY SUCH ACTION THAT SUCH ACTION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

     10.14 Severability. The provisions of this Agreement are severable and if any one clause or
provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction,
then such invalidity or unenforceability shall affect only such clause or provision, or part
thereof, in such jurisdiction, and shall not in any manner affect such clause or provision in any
other jurisdiction, or any other clause or provision of this Agreement in any jurisdiction.

     10.15. Amendment and Restatement. This Agreement has been given by Borrower to Bank to amend
and restate the terms of a certain Credit Agreement dated June 23,2004 between Borrower and
Citizens (the “Original Agreement”). The Borrower does not intend for the amendment and restatement
of the Original Agreement by this Agreement to constitute, nor shall

45

 

it be deemed to constitute, a novation or extinguishment of the obligations of Borrower evidenced
by the Original Agreement and this Agreement shall in no event impair, limit, reduce or otherwise
discharge the liability of Borrower under the Original Agreement provided that the Bank and the
Borrower hereby agree that from and after the date hereof all such liability shall be evidenced by
and governed by the terms of this Agreement.

46

 

          IN WITNESS WHEREOF, the undersigned have duly executed this Credit Agreement under seal as of’ the
date first above written.

	 	 	 	 	 	 	 	 	 
	WITNESS	 	 	 	VIRTUSA CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Charles Speicher
 

Charles Speicher

	 	 	 	By:
	 	/s/ Kris Canekeratne
 

Chairman and Chief
	 	 
	Corporate Controller

	 	 	 	 	 	Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	CITIZENS BANK	 	 
	 
	 	 	 	 	 	 	 	 
	  

	 	 	 	By:
	 	/s/ Sharon A. Stone
 

Sharon A. Stone
	 	 
	 

	 	 	 	 	 	Senior Vice President	 	 

47

 

AMENDED AND RESTATED

REVOLVING CREDIT NOTE

			
	$3,000,000.00
	 	September 29, 2006

     FOR VALUE RECEIVED, the undersigned (the “Borrower”) absolutely and unconditionally promises
to pay to the order of CITIZENS BANK OF MASSACHUSETTS (“Payee”) at 53 State Street, Boston,
Massachusetts 02109:

     (a) on the Revolving Credit Maturity Date, the principal amount of THREE MILLION DOLLARS
($3,000,000.00) or, if less, the aggregate unpaid principal amount of Revolving Credit Loans and
Reimbursement Obligations owing to the Payee pursuant to the Credit Agreement of even date
herewith, as amended or supplemented from time to time (the “Credit Agreement”), by and among the
Borrower and the Payee; and

     (b) interest on the principal balance hereof from time to time outstanding from the date
hereof through and including the date on which such principal amount is paid in full, at the times
and at the rates provided in the Credit Agreement.

     This Note evidences borrowings under, is subject to the terms and conditions of and has been
issued by the Borrower in accordance with the terms of the Credit Agreement and is the Note
referred to therein. The Payee and any holder hereof is entitled to the benefits and subject to the
conditions of the Credit Agreement and may enforce the agreements of the Borrower contained
therein, and any holder hereof may exercise the respective remedies provided for thereby or
otherwise available in respect thereof, all in accordance with the respective terms thereof, This
Note is secured by the Security Documents described in the Credit Agreement.

     All capitalized terms used in this Note and not otherwise defined herein shall have the same
meanings herein as in the Credit Agreement.

     The Borrower has the right in certain circumstances and the obligation under certain other
circumstances to repay or prepay the whole or part of the principal of this Note on the terms and
conditions specified in the Agreement.

     If any Event of Default shall occur, the entire unpaid principal amount at’ this Note and all
of the unpaid interest accrued thereon may become or be declared due and payable in the manner and
with the effect provided in the Credit Agreement.

     The Borrower and every endorser and guarantor of this Note or the obligation represented
hereby waive presentment, demand, notice, protest and all other demands and notice in connection
with the delivery, acceptance, performance, default or enforcement of this Note, assent to any
extension or postponement of the time of payment or any other indulgence, to any substitution,
exchange or release of collateral and to the addition or release of any other party or Person
primarily or secondarily liable.

1

 

     This Note shall be deemed to take effect as a sealed instrument under the laws of The
Commonwealth of Massachusetts and for au purposes shall be construed in accordance with such laws
(without regard to conflicts of laws rules).

     This Note has been given by Borrower to Bank to amend and restate the terms of a certain
Revolving Credit Note dated as of June 23, 2004 by Borrower to Lender (the “Original Note”). The
Borrower does not intend for the amendment and restatement of the Original Note by this Note to
constitute, nor shall it be deemed to constitute, a novation or extinguishment of the obligations
of Borrower evidenced by the Original Note and this Note shall in no event impair, limit, reduce or
otherwise discharge the liability of Borrower under the Original Note provided that the Bank and
the Borrower hereby agree that from and after the date hereof all such liability shall be evidenced
by and governed by the terms of this Note

     IN WITNESS WHEREOF, the Borrower has caused this Note to be signed under seal by its duly
authorized officer as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	WITNESS	 	 	 	VIRTUSA CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Paul D. Tutun
 

	 	 	 	By:
	 	/s/ Thomas Holler
 

	 	 

2

 

AMENDED AND RESTATED SECURITY AGREEMENT

     This AMENDED AND RESTATED SECURITY AGREEMENT (this “Agreement”) is made as of September 29,
2006 and is given to amend and restate the terms and conditions of and to confirm the grant of
security interest granted by VIRTUSA CORPORATION, a corporation organized under the laws of the
State of Delaware and having its chief executive office at 2000 West Park Drive, Westborough,
Massachusetts 01581 (the “Borrower”), to CITIZENS BANK OF MASSACHUSETTS, a Massachusetts bank
having a banking office at 28 State Street, Boston, Massachusetts 02109 (the “Lender”) in that
certain Security agreement dated June 23, 2004 (the “Original Agreement”).

     The Borrower has requested the Lender to enter into a certain Amended and Restated Credit
Agreement of even date herewith (as the same may be amended, modified, supplemented, extended or
restated from time to time, the “Credit Agreement”) and to make loans and other credits to the
Borrower upon the terms and subject to the conditions set forth therein.

     Lender has required as a condition precedent to its entering the Credit Agreement that the
Borrower execute and deliver this Agreement and to grant the security interests referenced herein
and confirm its grant of security interests made in the Original Agreement.

     In order to induce the Lender to enter into the Credit Agreement and to make or continue to
make available to the Borrower loans and other extensions of credit upon the terms and subject to
the conditions set forth therein, and in consideration thereof, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the Borrower agrees as
follows:

     Section 1. Definitions. All capitalized terms used herein or in any certificate, report or
other document delivered pursuant hereto shall have the meanings assigned to them below or in the
Credit Agreement (unless otherwise defined). Except as otherwise defined, terms defined in the
Uniform Commercial Code and used herein shall have the meanings set forth in the Uniform Commercial
Code; provided, however, that the term “instrument” shall be such term as defined in Article 9 of
the Uniform Commercial Code rather than Article 3 of the Uniform Commercial Code.

     Accounts. All rights of the Borrower to payment of monetary obligation (i) for property that
has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (ii) for services
rendered or to be rendered, (iii) for a secondary obligation incurred or to be incurred, or (iv)
arising out of the use of credit or charge card or information contained on or for use with the
card; and all sums of money and other proceeds due or becoming due thereon, all notes, bills,
drafts, acceptances, instruments, documents and other debts, obligations and liabilities, in
whatever form, owing to the Borrower’s rights pertaining to and interest in such property,
including the right of stoppage in transit, replevin or reclamation; all chattel paper; all amounts
due from Affiliates of the Borrower; all insurance proceeds; all other rights and claims to the
payment of money, under contracts or otherwise; and all other property constituting “accounts” as
such term is defined in the Uniform Commercial Code.

1

 

     Collateral. All personal and fixture property belonging to the Borrower or in which the
Borrower has any rights, of every kind and description, tangible and intangible, whether now owned
or existing or hereafter arising or acquired; including, without limitation, all Accounts,
Equipment, General Intangibles, Inventory and Investment Property, together with
all goods,
instruments (including promissory notes) documents of title, policies and certificates of
insurance, commercial tort claims, chattel paper (whether tangible or electronic), deposit
accounts, letter of credit rights (whether or not the letter of credit is evidenced by a writing)
and other property owned by the Borrower or in which the Borrower has an interest and including,
without limitation, any cash that is now or may hereafter be in the possession, custody, or control
of the Lender or its participants or assigns for any purpose; any and all additions, substitutions,
replacements and accessions to foregoing and all supporting obligations relating to the forgoing;
and all Proceeds and Property and products of any of the foregoing; but excluding all Intellectual
Property.

     Encumbrance. Any mortgage, pledge, security interest, lien or other charge or encumbrance of
any kind or nature (including, without limitation, the lien or retained security title of a
conditional vendor) upon or with respect to any property.

     Equipment. All machinery, equipment, and fixtures, furniture, furnishings, trade fixtures,
specialty tools and parts, motor vehicles and materials handling equipment of the Borrower,
together with the Borrower’s interest in, and right to, any and all manuals, computer programs,
data bases and other materials relating to the use, operation or structure of any of the foregoing;
and all other property constituting ‘equipment’ as such term is defined in the Uniform Commercial
Code.

     General Intangibles. Except for the Intellectual Property, all rights of the Borrower under
contracts to enjoy performance by others or to be entitled to enjoy rights granted by others,
including without limitation any licenses; all payment intangibles; all obligations and
indebtedness of any kind (other than Accounts) owning to the Borrower from whatever source arising;
all contract rights; all rights of the Borrower as a bailor; all tax refunds; all right, title and
interest of the Borrower in and to all software, documents, books, records, files and other
information (on whatever medium recorded, and including without limitation computer programs,
tapes, discs, punch cards, data processing software and related property and rights) maintained by
the Borrower that reflect the conduct of the Borrower’s business, such as financial records,
marketing and sales records, research and development records, and design, engineering and
manufacturing records; all rights under service bureau service contracts; all computer data and the
concepts and ideas on which said data is based; all data bases, all customer lists, and all other
property constituting “general tangibles” as such term is defined in the Uniform Commercial Code.

     Intellectual Property. All of the following, to the extent owned by (and not licensed to) the
Borrower (i) United States and foreign patents, patent applications and statutory invention
registrations, including reissues, divisions, continuations, substitutions, renewals, continuations

2

 

in part, extensions and reexaminations thereof, and all improvements thereto, (ii) software,
databases, copyrightable works, websites, copyrights (registered, renewed or otherwise) and
registrations, renewals and applications for registration or renewal thereof, (iii) trademarks,
trademark applications, service marks, service mark applications, trade dress, logos, slogans,
symbols, trade names, internet domain names, brand names, product names, fictitious names,
corporate names, and other source identifiers and all reissues, extensions and renewals thereof and
the goodwill of the business symbolized thereby and associated therewith, (iv) trade secrets,
know-how, technology, inventions and discoveries and (v) any and all right, title, and interest in
and to the foregoing, including the right to sue for past, present, and future infringement, in all
of such cases (i) through (v), whether used, held for use, supported, maintained, marketed or
otherwise.

     Inventory. All goods, merchandise and other personal property (including warehouse receipts
and other negotiable and non-negotiable documents of title covering any such property) of the
Borrower that are held for sale, lease or other disposition or to be furnished under contracts of
service (or that are so furnished), or for display or demonstration, or leased or consigned, or
that are raw materials, piece goods, work-in-process, finished goods or supplies or other materials
used or consumed or to be used or consumed in the Borrower’s business, whether in transit or in the
possession of the Borrower or another, including without limitation all goods covered by purchase
orders and contracts with suppliers and all goods billed and held by suppliers and goods located on
the premises of any carriers, forwarding agents, truckers, warehousemen, vendors, selling agents or
other third parties; all plans, drawings, diagrams, schematics, assembly and display materials
relating to any of the foregoing; and all other property constituting “inventory” as such term is
defined in the Uniform Commercial Code.

     Investment Property. All the securities (whether certificated or uncertificated) of the
Borrower, including without limitation all stocks, bonds Treasury bills, certificates of deposits,
mutual or money market fun shares, security entitlements, securities accounts, commodity contracts
and commodity accounts; and all sums due or to become due on any of the foregoing, and all
securities, instruments or other property purchased or acquired as a result of the investment and
reinvestment thereof as hereinafter provided, and all other property constituting “investment
property” as such term is defined in the Uniform Commercial Code; excluding any capital stock, or
other equity interests of any Subsidiary of the Borrower.

     Perfection Certificate. A certificate signed by a Responsible Officer of the Borrower in the
form attached hereto as Exhibit A.

     Proceeds. All proceeds received of and all other profits, rentals and receipts, in whatever
form, or arising from any Collateral, including whatever is received or acquired upon the sale,
lease, exchange, assignment, licensing or other disposition of any Collateral; whatever is
received, collected on or distributed on account of any Collateral; all rights arising out of any
Collateral; all claims arising out of the loss, nonconformity, interference with the use of defects
or infringement of rights in, or damage to or destruction of, any Collateral; any insurance payable
by reason of the loss a damage or nonconformity of, defects or infringement of rights in, or damage
to or destruction of, any Collateral; any unearned premiums with respect to policies of insurance
in respect of any Collateral; and condemnation or requisition payments with respect to

3

 

any Collateral; and all other property constituting “proceeds” as such term is defined in the
Uniform Commercial Code; in each chase whether now or existing or hereafter arising.

     Secured Obligations. All obligations of the Borrower under or in respect of the Loan
Documents.

     Security Interests The security interests and liens granted pursuant to Section 2 hereof, as
well as all other security interests created or assigned as additional security for the Secured
Obligations pursuant to this Agreement.

     Uniform Commercial Code The Uniform Commercial Code as in effect in The Commonwealth of
Massachusetts, provided, that if by reason of mandatory provisions of law, perfection, or the
effect of perfection or non-perfection, of the Security Interests of any Collateral is governed by
the Uniform Commercial Code as in effect in a jurisdiction other than Massachusetts, “Uniform
Commercial Code” means the Uniform Commercial Code as in effect in such other jurisdiction for the
purposes of the provisions hereof relating to such perfection or effect of perfection or
non-perfection, as the case may be.

     Section 2. Grant.

          (a) To secure the full and punctual payment and performance of the Secured Obligations, the
Borrower hereby assigns and pledges to the Lender all of its rights, title and interest in, and
grants to the Lender a continuing security interest in, the Collateral of the Borrower. The
Security Interests are granted as security only and shall not subject the Lender to, or transfer to
the Lender or in any way affect or modify, any obligation or liability of the Borrower with respect
to any of the Collateral, or any transaction in connection therewith.

          (b) Upon the execution of this Agreement, and from time to time thereafter, the Borrower shall
deliver to the Lender such Uniform Commercial Code financing statements, assignments, continuation
statements, amendments, instruments and notices and assignments under the Assignment of Claims Act
of 1940, as amended (collectively, the “Perfection Documents”), as may be reasonably required for
the Lender to perfect its Security Interest in all Collateral. Any such financing statements,
continuation statements or amendments may be prepared and filed by the Lender at any time in any
jurisdiction.

     Section 3. Representations, Warranties, and Covenants. The Borrower hereby makes the following
representations and warranties, and agrees to the following covenants, each of which
representations, warranties and covenants shall be continuing and in force so long as this
Agreement is in effect:

     3.1 Name; Location; Changes.

          (a) The name of the Borrower set forth in Section 1(a) of the Perfection Certificate is the
true and correct legal name of the Borrower, and except as otherwise disclosed to the Lender in the
Perfection Certificate, the Borrower has not done business as or used any other name.

4

 

          (b) The state of organization of the Borrower set forth in section 1(d) of the Perfection
Certificate is the true and correct state of organization of the Borrower and the Borrower is duly
organized and in good standing in such state on the date hereof.

          (c) The address of the Borrower set forth in Section 2(a) of the Perfection Certificate is the
Borrower’s chief executive office and the place where its business records are kept. Except as
disclosed on the Perfection Certificate, all tangible Collateral of the Borrower other than
Investment Property is located at such chief executive office, and except as disclosed on the
Perfection Certificate, such Collateral has remained located at its current location for the four
consecutive months immediately prior to the date hereof.

          (d) The Borrower will not change its name, identity or organizational structure, nature, or
jurisdiction or organization, or chief executive office or place where its business records are
kept, or move any tangible Collateral (other than Investment Property) to a location other than
those set forth in the Perfection Certificate, or merge into or consolidate with any other entity,
unless permitted under the Credit Agreement and unless the Borrower shall have given the Lender at
least 30 days’ prior written notice thereof and the Borrower shall have delivered to the Lender or
authorized Lender to file such new Uniform Commercial Code financing statements or other
documentation as may be necessary or required by the Lender to ensure the continued perfection and
priority of the Security Interests.

          (e) The Borrower delivered a Perfection Certificate to the Lender with the Original Agreement.
All information set forth in such Perfection Certificate is true and correct in all material
respects. The Borrower agrees to supplement the Perfection Certificate promptly after obtaining
information which would require a correction.

          3.2. Ownership of Collateral; Absence of Liens and Restrictions. The Borrower is, and in the
case of property acquired after the date hereof, will be, the sole legal and equitable owner of the
Collateral, holding good and marketable title to the same free and clean of all Encumbrances except
for the Security Interests and Permitted Encumbrances, and has good right and legal authority to
assign, deliver, and create a security interest in such Collateral in the manner herein
contemplated. The Collateral is genuine and is what it is purported to be. The Collateral is not
subject to any restriction that would prohibit or restrict the assignment, delivery or creation of
the security interests contemplated hereunder.

          3.3 First Priority Security Interest. This Agreement creates a valid and continuing lien on
and security interest in the Collateral, and upon the filing of Uniform Commercial Code financing
statements in the appropriate offices for the locations of Collateral listed in the Borrower’s
Perfection Certificate, the Security Interests will be perfected (except to the extent a security
interest may not be perfected by filing under the Uniform Commercial Code), prior to all other
Encumbrances other than as disclosed in the Credit Agreement as Permitted Encumbrances, and is
enforceable as such against creditors of the Borrower, any owner of the real property where any of
the Collateral is located, any purchaser of such real property and any present or future creditor
obtaining a lien on such real property.

5

 

          3.4 No Conflicts. Neither the Borrower nor any of its predecessors has performed any acts or
is bound by any agreements which might prevent the lender from enforcing the Security Interest or
any of the terms of this Agreement or which would limit the Lender in any such enforcement. Except
as specifically disclosed in the Perfection Certificate, no financing statement under the Uniform
Commercial Code of any state or other instrument evidencing a lien that names the Borrower as
debtor is on file in any jurisdiction and the Borrower has not signed any such document or any
agreement authorizing the filing of any such financing statement or instrument.

          3.5 Sales and Further Encumbrances. The Borrower will not sell, grant, assign or transfer any
interest in, or permit to exist any Encumbrances on, any of the Collateral, except the Security
Interests as permitted by the Credit Agreement.

          3.6 Fixture Conflicts: Required Waivers. The Borrower intends, to the extent not inconsistent
with applicable law, that the Collateral shall remain personal property of the Borrower and shall
not be deemed to be a fixture irrespective of the manner and its attachment to any real estate. The
Borrower will deliver to the Lender such disclaimers, waivers or other documents as the Lender may
request to confirm the foregoing, executed by each person having an interest in such real estate.

          3.7 Validity of Accounts. Each Account constituting Collateral is and, to the best of the
Borrower’s knowledge, shall be a valid, legal and binding obligation of the party purported to be
obligated thereon, enforceable in accordance with its terms and free of material set-offs, defenses
or counterclaims. The Borrower has no knowledge of any fact that would materially impair the
validity or collectibility of any of the Accounts constituting Collateral.

          3.8 Inspection; Verification of Accounts. The Borrower shall keep complete and accurate books
and records relating to the Collateral, and upon request of the Lender shall stamp or otherwise
mark such books and records in such manner as the Lender may reasonably request in order to reflect
the Security Interest. The Borrower will allow the Lender and its designees to examine, inspect and
make extracts from or copies of the Borrower’s books and records, inspect the Collateral and
arrange for verification of Accounts constituting Collateral directly with any account debtors or
by other methods, upon reasonable notice and under reasonable procedures established by the Lender
after consultation with the Borrower.

          3.9 Collection and Delivery of Proceeds; Lockboxes.

          (a) The Borrowers will diligently collect all of its Accounts constituting Collateral until
the Lender exercises its rights to collecting the Accounts pursuant to this Agreement. After the
occurrence and during the continuance of an Event of Default, all Proceeds of Accounts, Inventory
and other Collateral received by the Borrower, whether in the form of wire or ACH transfers, cash,
checks, notes, or other instruments, shall be held in trust for the Lender and, upon request of the
Lender, shall be delivered daily to the Lender, without commingling, in the identical form received
(properly endorsed or assigned where required to enable the Lender to collect the same), for
application to the Secured Obligations. If any Accounts are at any time evidenced by tangible
chattel paper, promissory notes, trade

6

 

acceptances or other instruments, the Borrower will promptly deliver the same to the Lender
appropriately endorsed to the Lender’s order and, regardless of the form of such endorsement, the
Borrower hereby waives presentment, demand, notice of dishonor, protest, notice of protest, and all
other notices with respect thereto.

          (b) The Borrower shall, at the request of the Lender at any time, notify account debtors, and
the Lender may itself, after the occurrence and during the continuance of a Default notify account
debtors directly, of the Security Interest of the Lender in any Account and that payment thereof is
to be made directly to the Lender for application to the Secured Obligations.

          3.10 Insurance. The Borrower shall at all times maintain liability and casualty insurance on
the Collateral with financially sound and reputable insurers in such amounts and with such
coverages, endorsements, deductibles and expiration dates as the officers of the Borrower in the
exercise of their reasonable judgment deem to be adequate, as are customary in the industry for
companies of established reputation engaged in the same or similar business and owning or operating
similar properties and as shall be reasonably satisfactory to the Lender. The Lender shall be named
as loss payee, additional insured and/or mortgagee under such insurance as the Lender shall require
from time to time, and the Borrower shall provide to the Lender lender’s loss payable endorsements
in form and substance reasonably satisfactory to the Lender. In addition, the Lender shall be given
thirty (30) days advance notice of any cancellation of insurance. In the event of failure to
provide and maintain insurance as herein provided, the Lender may, at its option, provide such
insurance and charge the amount thereof to the Borrower as a Revolving Credit Loan. The Borrower
shall furnish to the Lender certificates or other evidence satisfactory to the Lender of compliance
with the foregoing insurance provisions. The Lender shall not, by the fact of approving,
disapproving or accepting any such insurance, incur any liability for the form or legal sufficiency
of insurance contracts, solvency of insurance companies or payment of lawsuits, and the Borrower
hereby expressly assumes full responsibility therefor and liability, if any, thereunder.

          3.11 Maintenance and Use Payment of Taxes. The Borrower will preserve, protect and keep the
Collateral in good order and repair, ordinary wear and tear and damage by fire or other casualty
excepted, will not use the same in violation of law or any policy of insurance thereon, and will
pay promptly when due all taxes and assessments on such Collateral or on its use or operation,
except as otherwise permitted by the Credit Agreement.

          3.12 General Intangibles. The Borrower will use such measures as are appropriate to preserve
its rights in its General Intangibles constituting Collateral.

          3.13 Investment Property. Until the occurrence and continuance of an Event of Default
hereunder, the Borrower shall retain the right to vote any of the Investment Property constituting
Collateral in a manner not inconsistent with the terms of this Agreement and the Credit Agreement.
If the Borrower, as registered holder of such Investment Property, receives (i) any dividend, or
other distribution in cash or other property in connection with the liquidation or dissolution of
the issuer of such Investment Property, or in connection with the redemption or payment of such
Investment Property, or (ii) any stock certificate, option or right, or other distribution, whether
as an addition to, in substitution of, or in exchange for, such Investment

7

 

Property, or otherwise, the Borrower agrees to accept the same in trust for the Lender and to
deliver the same forthwith to the Lender or its designee, in the exact form received, with the
Borrower’s endorsement or reassignment when necessary, to be held by the Lender as Collateral.
After the occurrence and during the continuance of an Event of Default, upon request of the Lender,
the Borrower will (i) deliver all of its Investment Property constituting Collateral and
represented by certificates, including without limitation all stock of its Subsidiaries, to the
Lender to hold pursuant to the terms of this Agreement (ii) register in the name of the Lender or
its designee any uncertificated Investment Property constituting Collateral or the Lender’s
security interest therein on the books maintained by or on behalf of the issuer thereof or the
depository therefore and (iii) do all things necessary or desirable, as determined by the Lender,
to transfer control over any Investment Property to the Lender including, but not limited to,
registering the Lender as the holder of the securities entitlement or commodities contract as
appropriate, and entering into any control agreement, in form designated by the Lender, pursuant to
which the securities intermediary shall agree that it will comply with the entitlement orders
originated by the Lender without further consent of the Borrower, and entering into any control
agreement, in form designated by the Lender, pursuant to which the commodity intermediary shall
agree that it will apply any value distributed on account of any commodity contract as direct by
the Lender without further consent by the Borrower.

          3.14 Electronic Chattel Paper and Transferable Records: For any interest in an electronic
chattel paper or any “transferable record,” as that term is defined in Section 201 of the federal
electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform
Electronic Transactions Act as in effect in any jurisdiction applicable to the Borrower, any
Collateral or any transaction contemplated hereby, the Borrower shall take such action as the
Lender may reasonably request to vest in the Lender control under Section 9-105 of the Uniform
Commercial Code of such electronic chattel paper or control under Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the
Uniform Electronic Transactions Act of such transferable record. The Lender agrees that it will
arrange, pursuant to procedures satisfactory to the Lender, so long as such procedures will not
result in the Lender’s loss of control, for the Borrower to make alterations to the electronic
chattel paper or transferable record permitted under Section 9-105 of the Uniform Commercial Code
or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in control to
make without loss of control, unless an Event of Default has occurred and is continuing or would
occur after taking into account any action by the Borrower with respect to such electronic chattel
paper or transferable record.

          3.15 Bailments, Etc. If any Collateral is at any time in the possession or control of any
warehouseman, bailee or any of the Borrower’s agents or processors, the Borrower shall, upon
request of the Lender, (i) notify such warehouseman, bailee, agent or processor of the Security
Interest and instruct such warehouseman, bailee, agent or processor to hold all such Collateral for
the Lender’s account subject to the Lender’s instructions, (ii) arrange for such warehouseman,
bailee, agent or processor to authenticate a record acknowledging that it holds possession of the
Collateral for the Lender’s benefit, (iii) deliver any negotiable warehouse receipt, bill of lading
or other document of title issued with regard to the Collateral to the Lender appropriately
endorsed to the Lender’s order, and (iv) arrange for the issuance in the name of the

8

 

Lender, in form reasonably satisfactory to the Lender, any nonnegotiable document of title covering
such Collateral.

          3.16 Assignment of Claims Act. If at any time any Accounts of the Borrower arise from
contracts with the United States of America or any department, agency or instrumentality thereof,
the Borrower shall execute all assignments and take all steps reasonably requested by the Lender in
order that all monies due to become due thereunder will be assigned and paid to the Lender under
the Assignment of Claims Act of 1940.

          3.17 Notes and Instruments. If at any time any amount payable under or in connection with any
of the Collateral is evidenced by any promissory note or other instrument, such note or instrument
shall be promptly delivered to the Lender, duly endorsed in a manner satisfactory to the Lender.

          3.18 Further Assurances. Upon the reasonable request of the Lender, and the sole expense of
the Borrower, the Borrower will promptly execute and deliver such further instruments and documents
and take such further actions as the Lender may deem desirable to obtain the full benefits of this
Agreement and of the rights and powers herein granted, including, without limitation, filing of any
financing statement, continuation statement, amendment or notice under the Uniform Commercial Code
or other applicable law. The Borrower authorizes the Lender to file such financing statements
without the signature of the Borrower to the extent permitted by applicable law, and to file a copy
this Agreement in lieu of a financing statement, and to take any and all actions required by any
earlier versions of the Uniform Commercial Code or by other law, as applicable in any relevant
Uniform Commercial Code jurisdiction, or by other laws applicable in any foreign jurisdiction. The
Borrower shall provide the Lender with any information the Lender shall reasonably request in
connection with the foregoing, including, without limitation, the type and jurisdiction of
organization of the Borrower, and any organizational identification number issued to the Borrower.
The Borrower shall also take all actions requested by the Lender in order to insure the continued
perfection and priority of the Lender’s security interest in any of the Collateral and of the
preservation of its rights therein.

     Section 4. Notices and Reports Pertaining to Collateral. The Borrower will, with respect to
the Collateral:

          (a) promptly furnish to the Lender, from time to time upon request, reports in form and detail
reasonably satisfactory to the Lender;

          (b) promptly notify the Lender of any Encumbrance (except Permitted Encumbrances) asserted
against the Collateral, including any attachment, levy, execution or other legal process levied
against any of the Collateral, and of any information received by the Borrower relating to the
Collateral, including the Accounts, the account debtors, or other persons obligated in connection
therewith, that may in any way adversely affect the value of the Collateral as a whole or the
rights and remedies of the Lender with respect thereto;

          (c) promptly notify the Lender when it obtains knowledge of actual or imminent bankruptcy or
other insolvency proceeding of any material account debtor or issuer of
Investment property;

9

 

          (d) concurrently with the reports required to be furnished under subsection (a), and
immediately if material in amount, notify the lender of any return or adjustment, rejection,
repossession, or loss or damage of or to merchandise represented by Accounts and of any credit,
adjustment, or dispute arising in connection with the goods or services represented by Accounts or
constituting Inventory;

          (e) promptly after the Borrower establishes any Account with the United States of America or
any department, agency or instrumentality thereof, notify the Lender thereof;

          (f) promptly upon acquiring any commercial tort claim, notify the Lender in a writing signed
by the Borrower, of the details thereof and grant to the Lender in such writing a security interest
therein and in all the Proceeds thereof, such writing to be in form and substance satisfactory to
the lender; and

          (g) promptly upon receipt of any letter of credit issued to the Borrower as beneficiary
thereunder or upon acquiring an interest in any electronic chattel paper or any “transferable
record,” as that term is defined in section 201 of the Federal Electronic Signatures in Global and
National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act, notify the
Lender thereof.

Section 5. Lender’s Rights and Remedies in General.

          (a) So long as any Event of Default shall have occurred and is continuing: (i)the Lender may,
at its option, without notice or demand, cause all of the Secured Obligations to become immediately
due and payable and take immediate possession of the Collateral, and for that purpose the Lender
may, so far as the Borrower can give authority therefore, enter upon any premises on which any of
the Collateral is situated and remove the same therefrom or remain on such premises and in
possession of such Collateral for purposes of conducting a sale or enforcing the rights of the
Lender; (ii) the Borrower will, upon demand, assemble the Collateral, and make it available to the
Lender at a place and time designated by the Lender that is reasonably convenient to both parties;
(iii) the Lender may collect and receive all income and Proceeds in respect to any Collateral and
exercise all rights of the Borrower with respect thereto; (iv) the Lender may sell, lease or
otherwise dispose of any Collateral at a public or private sale, with or without having such
Collateral at the place of sale, and upon such terms and in such manner as the Lender may
determine, and the Lender may purchase any Collateral at any such sale. Unless such Collateral
threatens to decline rapidly in value or is of the type customarily sold on a recognized market,
the Lender shall send to the Borrower prior written notice (which, if given with in ten (10) days
of any sale, shall be deemed to be reasonable) of the time and place of any public sale of such
Collateral or of the time after which any private sale or other disposition thereof is to be made.
The Borrower agrees that upon any such sale such Collateral shall be held by the purchaser free
from all claims or rights of every kind and nature, including any equity of redemption or similar
rights, and all such equity of redemption and similar rights are hereby expressly waived and
released by the Borrower. In the event any consent, approval or

10

 

authorization of any governmental agency is necessary to effectuate any such sale, the Borrower
shall execute all applications or other instruments as may be required; and (v) in any jurisdiction
where the enforcement of its rights hereunder is sought, the Lender shall have, in addition to all
other rights and remedies, the rights and remedies of a secured party under the Uniform Commercial
Code and other applicable law.

          (b) The Lender may perform any covenant or agreement of the Borrower contained herein that the
Borrower has failed to perform and in so doing the Lender may expend such sums as it may reasonably
deem advisable in the performance thereof, including, without limitation, the payment of any taxes
or insurance premiums, payment to obtain a release of Encumbrance or potential Encumbrance,
expenditures made in defending against any adverse claim and all other expenditures which the
Lender may make for the protection of Collateral or which it may be compelled to make by operation
of law. All such sums and amounts so expended shall be repaid by the Borrower upon demand, shall
constitute additional Secured Obligations and shall bear interest from the date said amounts are
expended at the rate per annum provided in the Credit Agreement to be paid on Revolving Credit
Loans after the occurrence of an Event of Default. No such performance of any covenant or agreement
by the Lender on behalf of the Borrower, and no such advance or expenditure therefore, shall
relieve the Borrower of any Event of Default under the terms of this Agreement or the other Loan
Documents

          (c) Prior to any disposition of Collateral pursuant to this Agreement the Lender may, at its
option, cause any of the Collateral to be repaired or reconditioned (but not upgraded unless
mutually agreed) in such manner and to the extent as to make it saleable.

          (d) The Lender is hereby granted a license or other right to use, without charge, the
Borrower’s labels, patents, copyrights, right of use of any name, trade secrets, trade names,
trademarks, and advertising matter, or any property of a similar nature, relating to the
Collateral, in completing production of, advertising for sale and selling any Collateral; and the
Borrower’s rights under all licenses and all franchise agreements shall inure to the Lender’s
benefit.

          (e) The Borrower recognizes that the Lender may be unable to effect a public sale of all or a
part of the Investment Property by reason of certain prohibitions contained in the Securities Act
of 1933 (as amended from time to time, the “Securities Act”) or the securities laws of various
states (the “Blue Sky Laws”), but may be compelled to resort to one or more private sales to a
restricted group of purchasers who will be obligated to agree, among other things, to acquire the
Investment Property for their own account, for investment and not with a view to the distribution
or resale thereof. The Borrower acknowledges that private sales so made may be at prices and upon
other terms less favorable to the seller than if the Investment Property were sold at public sales.
The Borrower agrees that the Lender has no obligation to delay sale of any of the Investment
Property for the period of time necessary to permit the Investment Property to be registered for
public sale under the Securities Act or the Blue Sky Laws, and that private sales made under the
foregoing circumstances shall be deemed to have been made in a commercially reasonable manner.

          (f) The Lender shall be entitled to retain and to apply the Proceeds of any disposition of the
Collateral, first, to its reasonable expenses provided for herein, including

11

 

attorneys’ fees and other legal expenses incurred by it in connection therewith; and second, to the
payment of the Secured Obligations in such order of priority as the Lender shall determine. Any
surplus remaining after such application shall be paid to the Borrower or to whomever may be
legally entitled thereto, provided that in no event shall the Borrower be credited with any part of
the Proceeds of the disposition of the Collateral until such Proceeds shall have been received in
cash from the Lender. The Borrower shall remain liable for any deficiency.

          (g) The Borrower hereby appoints to the Lender and each of the Lender’s designees or agents as
attorney-in-fact of the Borrower, irrevocably and with power of substitution, with full authority
in the name of the Borrower, the Lender or otherwise, for sole use and benefit of the Lender, but
at the Borrower’s expense, so long as an Event of Default is continuing, to take any and all of the
actions specified above in this Section and elsewhere in this Agreement. This power of attorney is
a power coupled with an interest and shall be irrevocable for so long as any of the Secured
Obligations remain outstanding.

          Section 6. Lender’s Rights and Remedies with Respect to Collateral. The Lender may, at its
option, at any time and from time to time after the occurrence and during the continuance of an
Event of Default, without notice to or demand on the Borrower, take the following actions with
respect to the Collateral:

          (a) with respect to any Accounts (i) demand, collect, and receipt of any amounts relating
thereto, as the Lender may determine; (ii) commence and prosecute any actions in any court for the
purposes of collection any such Accounts and enforcing any other rights in respect thereof, (iii)
defend, settle, or compromise any action brought and, in connection therewith, give such discharges
or releases as the Lender may deem appropriate; (iv) receive, open and dispose of mail addressed to
the Borrower and endorse checks, notes, drafts, acceptances, money orders, bills of lading,
warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the
goods giving rise to such Accounts or securing or relating to such Accounts, on behalf of and in
the name of the Borrower; and (v) sell, assign, transfer, make any agreement in respect of, or
otherwise deal with or exercise rights in respect of, any such Accounts or the goods or services
which have given rise thereto, as fully and completely as though the Lender were the absolute owner
there of for all purposes;

          (b) with respect to any Equipment and Inventory (i) make, adjust and settle claims under any
insurance policy related thereto and place and pay for appropriate insurance thereon; (iii) make
repairs or provide maintenance with respect thereto; and (iv) pay any necessary filing fees and any
taxes arising as a consequence of any such filing. The Lender shall not thereby relieve the
Borrower of its obligation to make such expenditures; and

          (c) with respect to any Investment Property (i) transfer it at any time to Lender, or to its
nominee, and receive the income thereon and hold the same as Collateral hereunder or apply it to
any matured Secured Obligations; and (ii) demand, sue for, collect or make any compromise or
settlement it deems desirable.

          Except as otherwise provided herein, the Lender shall have no duty as to the collection or
protection of any Collateral nor as to the preservation of any rights pertaining
thereto, beyond the safe custody of any Collateral in its possession.

12

 

          Section 7. Set-Off. Regardless of the adequacy of any Collateral or other means of obtaining
repayment of the Secured Obligations, any deposits, balances or other sums credited by or due from
the head office of the Lender or any of its branch offices to the Borrower and any property of the
Borrower now or hereafter in the possession, custody, safekeeping or control of the Lender or in
transit to the Lender may, at any time and from time to time after the occurrence of an Event of
Default, without notice to the Borrower or compliance with any other condition precedent now or
hereafter imposed by statute, rule of law, or otherwise (all of which are hereby expressly waived)
be set -off, appropriated and applied by the Lender against any and all Secured Obligations of the
Borrower in such manner as the head office of the Lender or any of its branch offices in its sole
discretion may determine, and the Borrower hereby grants the Lender a continuing security interest
in such deposits, balances, other sums and property for the payment and performance of all such
Secured Obligations. ANY AND ALL RIGHTS TO REQUIRE THE LENDER TO EXERCIS ITS RIGHTS OR REMEDIES
WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE SECURED OBLIGATIONS PRIOR TO EXERCISING ITS
RIGHTS OF SETOFF WITH RESPECT TO SUCH DEPOSITS, BALANCES, OTHER SUMS AND PROPERTY OF THE BORROWER
ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

          Section 8. Waivers. The Borrower waives presentment, demand, notice, protest, notice of
acceptance of this Agreement, notice of any loans made, credit or other extensions granted,
Collateral received or delivered and any other action taken in reliance hereon and all other
demands and notices of any description, except for such demands and notices as are expressly
required to be provided to the Borrower under this Agreement or any other Loan Document. The
Borrower waives, to the fullest extent permitted by law, the benefit of all appraisement,
valuation, stay, extension and redemption laws now or hereafter in force and all rights of
marshaling in the event of any sale or disposition of any of the Collateral with respect to both
the Secured Obligations and any Collateral. The Borrower assents to any extension or postponement
of the time of payment or any other forgiveness or indulgence, to any substitution, exchange or
release of Collateral, to the addition or release of any party or person primarily or secondarily
liable, to the acceptance of partial payment thereon and the settlement, compromise or adjustment
of any thereof, all in such manner and at such time or times as the Lender may deem advisable. The
Lender may exercise its rights with respect to the Collateral without resorting, or regard, to
other collateral or sources of reimbursement for Secured Obligations. The Lender shall not be
deemed to have waived any of its rights with respect to the Secured Obligations or the Collateral
unless such waiver is in writing and signed by Lender. No delay or omission on part of the Lender
in exercising any right and no course of dealing shall operate as a waiver of such right or any
other right. A waiver on any one occasion shall not bar or waive the exercise of any right on any
future occasion. All rights and remedies of the Lender in the Secured Obligations or the
Collateral, whether evidenced hereby or by any other instrument or papers, are cumulative and not
exclusive of any remedies provided by law or any other agreement, and may be exercised separately
or concurrently.

          Section 9. Notices. All notices, approvals, request, demands and other communications
hereunder shall be given in accordance with Section 10.1 of Credit Agreement.

13

 

          Section 10. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Borrower and its successors and assigns, and shall be binding upon and inure to the
benefit of and be enforceable by the Lender and its successor and assigns; provided that the
Borrower may not assign or transfer its rights or obligations hereunder. Without limiting the
generality of the foregoing sentence, the Lender may, in the manner and to the extent set forth in
the Credit Agreement, assign or otherwise transfer any agreement or any note held by it evidencing,
securing or otherwise executed in connection with the Secured Obligations, or sell participations
in any interest therein, to any other person or entity, and such other person or entity shall
thereupon become vested, to the extent set forth in agreement evidencing such assignment, transfer
or participation, with all the rights in respect thereof granted to the Lender herein.

          Section 11. Governing Law; Jurisdiction; Venue. THIS AGREEMENT IS A CONTRACT UNDER THE LAW OF
THE COMMONWEALTH OF MASSACHUSETTS AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF SAID COMMONWEALTH (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF
LAW). THE BORROWER HEREBY CONSENTS AND AGREES THAT THE SUPERIOR COURT OF THE COMMONWEALTH OF
MASSACHUSETTS, SITTING IN SUFFOLK COUNTY, OR, AT THE LENDER’S OPTION, THE UNITED STATES DISTRICT OF
MASSACHUSETTS, SITTING IN
BOSTON, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY SUIT TO ENFORCE THE RIGHTS OF
THE LENDER UNDER THIS AGREEMENT AND ANY CLAIMS OR DISPUTES BETWEEN THE BORROWER, ON THE ONE HAND,
AND THE LENDER, ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR ANY MATTER ARISING OUT OF OR
RELATED TO THIS AGREEMENT. THE BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT AND CONSENTS TO SERVICE OF PROCESS
IN ANY SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SET FORTH IN SECTION 10.1 OF THE
CREDIT AGREEMENT. THE BORROWER IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE
THE LAYING OF VENUE OF ANY SUCH ACTION BROUGHT IN THE COURTS REFERRED TO IN THIS SECTION AND
IRREVOCABLY WAIVED AND AGREES NOT TO PLEAD OR CLAIM ANY SUCH ACTION THAT SUCH ACTION HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

          Section 12. Waiver of Jury Trial. THE BORROWER AND THE LENDER HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE THEIR RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT
OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR SECURED OBLIGATIONS HEREUNDER, THE
PERFORMANCE OF SUCH RIGHTS AND SECURED OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS,
STATEMENTS (WHTHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITAION, ANY
COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE LENDER RELATING TO THE
ADMINISTRATION OR ENFORCEMENT OF THIS AGREEMENT, AND AGREES THAT

14

 

          IT WILL NOT SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CAN NOT
BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, THE BORROWER AND THE LENDER HEREBY WAIVE
ANY RIGHT THEY MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO TN THE PRECEDING SENTENCE
ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION
TO, ACTUAL DAMAGES. THE BORROWER (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE
LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE LENDER WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (b) ACKNOWLEDGES THAT THE LENDER HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BECAUSE OF, AMONG OTHER THINGS, THE BORROWER’S WAIVERS AND
CERTIFICATIONS CONTAINED HEREIN.

          Section 13. General. This Agreement may not be amended or modified except by a writing signed
by each of the Borrower and the Lender. This Agreement and any amendment hereof may be executed in
several counterparts and by each party on a separate counterpart, each of which when so executed
and delivered shall be an original, but all of which together shall constitute one instrument.
Section headings are for convenience of reference only and are not a part of this Agreement. In the
event that any Collateral or any deposit or other sum due from or credited by the Lender is held or
stands in the name of the borrower and another or others jointly, the Lender may deal with the same
for all purposes as if it belonged to or stood in the name of the Borrower alone.

15

 

     IN WITNESS WHEREOF, the Borrower has caused this Agreement to be duly executed as an
instrument under seal as of the date first written above.

	 	 	 	 	 
	 	VIRTUSA CORPORATION

 	 
	 	By:  	/s/ Charles Speicher
 	 
	 	 	Charles Speicher 	 
	 	 	Corporate Controller 	 
	 

ACCEPTED AS OF THE

DATE FIRST ABOVE WRITTEN

CITIZENS BANK OF MASSACHUSETTS

	 	 	 	 	 
	By:

	 	/s/ Sharon A. Stone	 	 
	 

	 	 

Sharon A. Stone
	 	 
	 

	 	Senior Vice President	 	 

16

 

NEGATIVE PLEDGE AGREEMENT

     THIS NEGATIVE PLEDGE AGREEMENT (this “Agreement”) is made this 29 day of September, 2006 by
VIRTUSA CORPORATION, a corporation organized under the laws of the State of Delaware and having its
chief executive office at 2000 West Park Drive, Westborough, Massachusetts 01581 (the “Borrower”),
in favor CITIZENS BANK OF MASSACHUSETTS, a Massachusetts bank having a banking office at 28 State
Street, Boston, Massachusetts 02109 (the “Lender”).

     The Borrower has requested that the Lender enter into a certain Amended and Restated Credit
Agreement with Borrower of even date herewith (as the same may be
amended, modified, supplemented, extended or restated from time to time, the “Credit
Agreement”) and that Lender agree to make loans and other credits to the Borrower upon the terms
and subject to the conditions set forth therein.

     Lender has required that Borrower enter into this Agreement as a condition precedent to
Lender’s entering into the Credit Agreement.

     In order to induce the Lender to enter into the Credit Agreement and to make or continue to
make loans and other credits available to the Borrower upon the terms and subject to the conditions
set forth therein, and in consideration thereof, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Borrower agrees as follows:

     Section 1. Definitions. All capitalized terms used herein or in any certificate, report or
other document delivered pursuant hereto shall have the meanings assigned to them below or in the
Credit Agreement (unless otherwise defined).

     Intellectual Property. All of the following, to the extent owned by (and not licensed to) the
Borrower: (i) United States and foreign patents, patent applications and statutory invention
registrations, including reissues, divisions, continuations, substitutions, renewals, continuations
in part, extensions and reexaminations thereof, and all improvements thereto, (ii) software,
database, copyrightable works, websites, copyrights (registered, renewed or otherwise) and
registrations, renewals and applications for registration or renewal thereof, (iii) trademarks,
trademark applications, service marks, service mark applications, trade dress, logos, slogans,
symbols, trade names, internet domain names, brand names, product names, fictitious names,
corporate names, and other source identifiers and all reissues, extensions and renewals thereof,
and goodwill of the business symbolized thereby and associated therewith, (iv) trade secrets,
know-how, technology, inventions and discoveries, and (v) any and all right, title, and interest in
and to the foregoing, including the right to sue for past, present and future infringement, in all
of such cases (i) through (v), whether used, held for use, supported, maintained, marketed or
otherwise.

     Section 2. Negative Pledge. The Borrower hereby covenants that it shall not create, incur,
assume or suffer to exist any Encumbrance, other than Permitted Encumbrances, or any other negative
pledge, on or with respect to the Intellectual Property. The Borrower further

1

 

covenants and agrees that it shall not sell, transfer, assign or otherwise alienate the
Intellectual Property, other than for fair consideration in the ordinary course of Borrower’s
business, without the prior written consent of Lender.

     Section 3. Notices.  All notices, approvals, requests, demands and other communications
hereunder shall be given in accordance with Section 10.1 of the Credit Agreement.

     Section 4. Governing Law: Jurisdiction; Venue.  THIS AGREEMENT IS A
CONTRACT UNDER THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS AND SHALL FOR ALL PURPOSES BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID COMMONWEALTH (EXCLUDING THE LAWS
APPLICABLE TO CONFLICTS OR CHOICE OF LAW). THE BORROWER HEREBY CONSENTS AND AGREES THAT THE
SUPERIOR COURT OF THE COMMONWEALTH OF MASSACHUSETTS, SITTING IN SUFFOLK COUNTY, OR AT THE LENDER’S
OPTION, THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
MASSACHUSETTS, SITTING IN BOSTON, SHALL HAVE EXCLUSIVE JURIDRICTION TO HEAR AND DETERMINE ANY SUIT
TO ENFORCE THE RIGHTS OF THE LENDER UNDER THIS AGREEMENT AND ANY CLAIMS OR DISPUTES BETWEEN THE
BORROWER, ON THE ONE HAND, AND THE LENDER, ON THE
OTHER HAND, PERTAINING TO THIS AGREEMENT OR ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT.
THE BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT
COMMENCED IN ANY SUCH COURT AND CONSENTS TO SERVICE OF THE PROCESS IN ANY SUCH SUIT BEING MADE UPON
THE BORROWER BY MAIL AT THE
ADDRESS SET FORTH IN SECTION 10.1 OF THE CREDIT AGREEMENT. THE BORROWER IRREVOCABLY WAIVES ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH ACTION BROUGHT
IN THE COURT REFERRED TO IN THE SECTION AND IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN
ANY SUCH ACTION SUCH ACTION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     Section 5. Waiver of Jury Trail.  THE BORROWER AND THE LENDER HEREBY KNOWINGLY, VOLUNTARY AND
INTENTIONALLY WAIVE THEIR RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF
ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR
OBLIGATIONS HEREUNDER, THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS OR ANY COURSE OF CONDUCT,
COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING,
WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE LENDER
RELATING TO THE ADMINISTRATION OR ENFORCEMENT OF THIS AGREEMENT, AND AGREES THAT IT WILL NOT SEEK
TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CAN NOT BE OR HAS NOT
BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, THE BORROWER AND THE LENDER HEREBY WAIVE ANY RIGHT THEY
MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL,
EXEMPLARY,

2

 

PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE
BORROWER (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE LENDER HAS REPRESENTED
EXPRESSLY OR OTHERWISE, THAT THE LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVERS AND (b) ACKNOWLEDGES THAT THE LENDER HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BECAUSE OF, AMONG OTHER THINGS, THE BORROWER’S WAIVERS AND CERTIFICATIONS CONTAINED
HEREIN.

Section 6. General. This Agreement may not be amended or modified expect by a writing signed by
each of the Borrower and Lender. This Agreement shall be binding upon and inure to the benefit of
the Borrower and its successors and assigns, and shall be shall be binding upon and inure to the
benefit of and be enforceable by the Lender and its successors and assigns; provided that the
Borrower may not assign or transfer its rights or obligations hereunder. This Agreement and any
amendment hereof may be executed in several counterparts and by each party on a separate
counterpart, each of which when executed and delivered shall be an original, but all of which
together shall constitute one agreement. Section headings are for convenience of reference only and
are not a part of this Agreement. In the event that any deposit or sum due from or credited by the
Lender is held or stands in the name of the Borrower and another or others jointly, the Lender may
deal with the same for all purposes as if it belonged to or stood in the name of the Borrower
alone.

     IN WITNESS WHEREOF, the Borrower has caused this Agreement to be duly executed as an
instrument under seal as of the date first written above.

	 	 	 	 	 
	 	VIRTUSA CORPORATION

 	 
	 	By:  	/s/ Kris Canekeratne
 	 
	 	 	Kris Canekeratne 	 
	 	 	Chairman and Chief Executive Officer 	 
	 

ACCEPTED AS OF THE

DATE FIRST ABOVE WRITTEN

CITIZENS BANK OF MASSCHUSETTS

	 	 	 	 	 
	By:

	 	/s/ Sharon A. Stone 	 	 
	 

	 	 

Sharon A. Stone
	 	 
	 

	 	Senior Vice President	 	 

3

 

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     This First Amendment (this “Amendment”) is made as of September 30, 2007 to that certain
Amended and Restated Credit Agreement dated September 29, 2006 (the “Credit Agreement”) between
CITIZENS BANK OF MASSACHUSETTS, now known as RBS CITIZENS, N.A. (“Bank”) and VIRTUSA CORPORATION,
a Delaware corporation with an address of 2000 West Park Drive, Westborough, Massachusetts 01581
(“Borrower”). Capitalized terms used and not defined in this Amendment shall have the meanings
ascribed to them in the Credit Agreement.

RECITALS

     Borrower has requested that Bank agree to extend the Revolving Credit Maturity Date
through December 31, 2007 and that Bank agree to eliminate the annual field examination of
Borrower’s books and records.

     Bank is amenable to so extending the Revolving Credit Maturity Date and so amending the Credit
Agreement, but only on the terms and conditions set forth in the Credit Agreement as amended
hereby.

AGREEMENT

     In consideration of the foregoing, of the undertakings of Borrower and Bank herein and for
other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

1. All references in the Credit Agreement and other Loan Documents to Bank shall be deemed to mean
RBS CITIZENS, N.A.

2. Effective September 30, 2007, the definition of the term “Revolving Credit Maturity Date”
contained in Section 1.1 of the Credit Agreement is deleted and replaced with the following text:

     “Revolving Credit Maturity Date. December 31, 2007.”

3. Section 5.5 of the Credit Agreement is hereby deleted in its entirety and replaced with the
following:

     “5.5. Inspection. On the request of Lender from time to time, Borrower shall permit
the Lender and its designees, at reasonable times and intervals of time, and upon reasonable
written notice, to (i) visit and inspect the United States properties of the Borrower and its
Subsidiaries, (ii) examine and make copies of and take abstracts from the United States books and
records of the Borrower and its Subsidiaries, (iii) verify Accounts Receivables using its customary
practices and procedures, and (iv) discuss the affairs, finances, and accounts of the Borrower and
its Subsidiaries with their appropriate officers, employees and independent accountants, all at the

1

 

expense of the Borrower. In the absence of an existing Event of Default, any such examination shall
be at Lender’s expense, and during the continuance of an Event of Default such examination shall be
at Borrower’s expense.”

4. Except as set forth on the disclosure schedule attached hereto as Exhibit A, Borrower
represents and warrants that all of the representations and warranties made by Borrower in the
Credit Agreement and other Loan Documents are and continue to be true and correct on the date
hereof, except to the extent that any of such representations and warranties relate by their terms
solely to a date prior to date of this Amendment. Except as set forth on the disclosure schedule
attached hereto as Exhibit A, Borrower hereby ratifies and confirms all of its covenants
and agreements contained in the Credit Agreement and represents that it is not aware of any default
of any of the terms and provisions of the Credit Agreement.

5. Borrower further represents and warrants that this Amendment is its valid and binding
obligation, enforceable against it in accordance with its terms, except as may be affected by
bankruptcy and other similar laws of general application affecting the rights and remedies of
creditors.

6. Borrower shall promptly execute and deliver such further documents, instruments and agreements
and take such further action as Bank may reasonably request, in its sole discretion, to effect the
purposes of this Amendment and the Credit Agreement and other Loan Documents, including, but not
limited to the execution and delivery of all documents necessary or reasonably required by Bank to
ensure that Bank has perfected liens on all assets of Borrower to the extent originally provided
under the Credit Agreement and the other Loan Documents. Borrower hereby appoints any officer or
agent of Bank as Borrower’s true and lawful attorney in fact, with power of substitution to endorse
the name of Borrower or any of their officers or agents in such regard, exercisable by Bank during
the continuance of an Event of Default.

7. Except as otherwise expressly provided in this Amendment, nothing in this Amendment shall extend
to or affect in any way any of the Obligations or any of the rights and remedies of Bank arising
under the Credit Agreement and other Loan Documents, and Bank shall not be deemed to have waived
any or all of such rights and remedies with respect to any Event of Default or event or condition
which, with notice or the lapse of time, would become an Event of a Default and which, upon
Borrower’s execution and delivery of this Amendment, might otherwise exist or which might hereafter
occur.

8. By execution of this Amendment, Borrower acknowledges and confirms that it does not, as of the
date of this Amendment, have any offsets, defenses or claims against Bank or any of its officers,
agents, directors or employees whether asserted or unasserted to the Obligations.

9. To the extent possible and except for the specific changes to the Credit Agreement effected
hereby, this Amendment shall be construed to be consistent with the provisions of the Credit
Agreement. In the event of any inconsistency between the provisions of this Amendment and any other
document (including, without limitation, any Loan Document), instrument, or

2

 

agreement entered into by and between Bank and Borrower, the provisions of this Amendment shall
govern and control. This Amendment shall be binding upon Bank and Borrower, and their
representatives, successors, and assigns, and shall inure to the benefit of Bank and Borrower and
their respective successors and assigns. This Amendment and all documents, instruments, and
agreements executed in connection herewith incorporate all of the discussions and negotiations
between Borrower and Bank, either expressed or implied, concerning the matters included herein and
in such other documents, instruments and agreements, any statute, custom, or usage to the contrary
notwithstanding. No such discussions or negotiations shall limit, modify, or otherwise affect the
provisions hereof. No modification, amendment, or waiver of any provision of this Amendment, or any
provision of any other document, instrument, or agreement between any Borrower and Bank shall be
effective unless executed in writing by the party to be charged with such modification, amendment,
or waiver.

10. Borrower acknowledges and agrees that it shall promptly pay to Bank the full amount of all
reasonable out-of-pocket costs and expenses of Bank incurred by Bank in preparation and
documentation of this Amendment and all documents ancillary hereto or incurred by Bank after the
date of this Amendment in connection with administration of the Obligations or enforcement of any
rights of Bank under the Credit Agreement and other Loan Documents or otherwise in respect of any
of the Obligations.

11. If any clause or provision of this Amendment is determined to be illegal, invalid or
unenforceable under any present or future law by the final judgment of a court of competent
jurisdiction, the remainder of this Amendment will not be affected thereby. It is the intention of
the parties that if any such provision is held to be invalid, illegal or unenforceable, there will
be added in lieu thereof an enforceable provision as similar in terms to such provision as is
possible, and that such added provision will be legal, valid and enforceable.

12. This Amendment is delivered to Bank in The Commonwealth of Massachusetts and it is the desire
and intention of the parties that this Amendment and the Loan Documents be in all respects
interpreted according to the laws of The Commonwealth of Massachusetts. Borrower specifically and
irrevocably consents to the personal and subject matter, jurisdiction and venue of any court of The
Commonwealth of Massachusetts sitting in the counties of Suffolk or Middlesex or in the District
Court of the United States for the District of Massachusetts with respect to all matters concerning
this Amendment or the Loan Documents or the enforcement of any of the foregoing.

13. This Amendment may be executed in one or more counterparts, each of which will be deemed an
original document, but all of which will constitute a single document. This Amendment will not be
binding on or constitute evidence of a contract between the parties until such time as a
counterpart of this document has been executed by each of the parties and delivered to Bank.

3

 

WITNESS our hands and seals effective as of September 30, 2007.

	 	 	 	 	 	 	 
	WITNESS (to all)	 	BORROWER:	 	 
	 	 	VIRTUSA CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ [ILLEGIBLE]

	 	By:  /s/ Thomas R. Holler
	 	[SEAL]
	 

	 	 	 	 	 	 
	 	 	duly authorized	 	 
	 	 	Thomas R. Holler	 	 
	 	 	Executive VP & CFO	 	 
	 
	 	 	 	 	 	 
	 

	 	BANK:	 	 	 	 
	 	 	RBS CITIZENS, N.A.	 	 
	 
	 	 	 	 	 	 
	/s/ [ILLEGIBLE]

	 	By:  /s/ Victoria Lazzell
	 	 
	 

	 	 	 	 	 	 
	 	 	Victoria Lazzell, Senior Vice President	 	 

4

 

EXHIBIT A

Disclosure Schedule to First Amendment to Amended and Restated Credit Agreement

5

 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

This Second Amendment (this “Amendment”) is made as of December 31,2007 to that certain Amended and
Restated Credit Agreement dated September 29,2006, as previously amended by First Amendment to
Amended and Restated Credit Agreement dated as of September 30,2007 (the “Credit Agreement”)
between CITIZENS BANK OF MASSACHUSETTS, now known as RBS CITIZENS, N.A. (“Bank”) and VIRTUSA
CORPORATION, a Delaware corporation with an address of 2000 West Park Drive, Westborough,
Massachusetts 01581 (“Borrower”). Capitalized terms used and not defined in this Amendment shall
have the meanings ascribed to them in the Credit Agreement.

RECITALS

Borrower has requested that Bank agree to extend the Revolving Credit Maturity Date through March
31, 2008 and that Bank agree to eliminate the pledge of the capital stock of its subsidiary,
Virtusa Securities Corporation.

Bank is amenable to so extending the Revolving Credit Maturity Date and so amending the Credit
Agreement, but only on the terms and conditions set forth in the Credit Agreement as amended
hereby.

AGREEMENT

In consideration of the foregoing, of the undertakings of Borrower and Bank herein and for other
good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

1. Effective December 31, 2007, the definition of the term “Revolving Credit Maturity Date”

contained in Section 1.1 of the Credit Agreement is deleted and replaced with the following text:

     “Revolving Credit Maturity Date. March 31, 2008.”

2. Effective December 31, 2007, the definition of the term “Security Documents” contained in

Section 1.1 of the Credit Agreement is deleted and replaced with the following text:

     “Security Documents. A security agreement, a negative pledge agreement with respect
to intellectual property of the Borrower and the Letter of Credit Pledge Agreement, and any
subsequent pledge or security agreements granted by Borrower to Lender, each in favor of the Lender
to secure Obligations, in each case as amended and/or restated and in effect from time to time, and
any additional documents evidencing or perfecting the Lender’s lien on the Collateral.”

3. Borrower and Bank hereby agree that the Pledge Agreement shall be cancelled and of no further
force and effect as of December 31,2007. Bank shall cancel and return the Pledge Agreement to
Borrower promptly after the date of this Amendment.

1

 

4. Except as set forth on the disclosure schedule attached hereto as Exhibit A, Borrower
represents and warrants that all of the representations and warranties made by Borrower in the
Credit Agreement and other Loan Documents are and continue to be true and correct on the date
hereof, except to the extent that any of such representations and warranties relate by their terms
solely to a date prior to date of this Amendment. Except as set forth on the disclosure schedule
attached hereto as Exhibit A, Borrower hereby ratifies and confirms all of its covenants
and agreements contained in the Credit Agreement and represents that it is not aware of any default
of any of the terms and provisions of the Credit Agreement.

5. Borrower further represents and warrants that this Amendment is its valid and binding
obligation, enforceable against it in accordance with its terms, except as may be affected by
bankruptcy and other similar laws of general application affecting the rights and remedies of
creditors.

6. Borrower shall promptly execute and deliver such further documents, instruments and agreements
and take such further action as Bank may reasonably request, in its sole discretion, to effect the
purposes of this Amendment and the Credit Agreement and other Loan Documents, including, but not
limited to the execution and delivery of all documents necessary or reasonably required by Bank to
ensure that Bank has perfected liens on all assets of Borrower to the extent originally provided
under the Credit Agreement and the other Loan Documents. Borrower hereby appoints any officer or
agent of Bank as Borrower’s true and lawful attorney in fact, with power of substitution to endorse
the name of Borrower or any of their officers or agents in such regard, exercisable by Bank during
the continuance of an Event of Default.

7. Except as otherwise expressly provided in this Amendment, nothing in this Amendment shall extend
to or affect in any way any of the Obligations or any of the rights and remedies of Bank arising
under the Credit Agreement and other Loan Documents, and Bank shall not be deemed to have waived
any or all of such rights and remedies with respect to any Event of Default or event or condition
which, with notice or the lapse of time, would become an Event of a Default and which, upon
Borrower’s execution and delivery of this Amendment, might otherwise exist or which might hereafter
occur.

8. By execution of this Amendment, Borrower acknowledges and confirms that it does not, as of the
date of this Amendment, have any offsets, defenses or claims against Bank or any of its officers,
agents, directors or employees whether asserted or unasserted to the Obligations.

9. To the extent possible and except for the specific changes to the Credit Agreement effected
hereby, this Amendment shall be construed to be consistent with the provisions of the Credit
Agreement. In the event of any inconsistency between the provisions of this Amendment and any other
document (including, without limitation, any Loan Document), instrument, or agreement entered into
by and between Bank and Borrower, the provisions of this Amendment shall govern and control. This
Amendment shall be binding upon Bank and Borrower, and their representatives, successors, and
assigns, and shall inure to the benefit of Bank and Borrower and

2

 

their respective successors and assigns. This Amendment and all documents, instruments, and
agreements executed in connection herewith incorporate all of the discussions and negotiations
between Borrower and Bank, either expressed or implied, concerning the matters included herein and
in such other documents, instruments and agreements, any statute, custom, or usage to the contrary
notwithstanding. No such discussions or negotiations shall limit, modify, or otherwise affect the
provisions hereof. No modification, amendment, or waiver of any provision of this Amendment, or any
provision of any other document, instrument, or agreement between any Borrower and Bank shall be
effective unless executed in writing by the party to be charged with such modification, amendment,
or waiver.

10. Borrower acknowledges and agrees that it shall promptly pay to Bank the full amount of all
reasonable out-of-pocket costs and expenses of Bank incurred by Bank in preparation and
documentation of this Amendment and all documents ancillary hereto or incurred by Bank after the
date of this Amendment in connection with administration of the Obligations or enforcement of any
rights of Bank under the Credit Agreement and other Loan Documents or otherwise in respect of any
of the Obligations.

11. If any clause or provision of this Amendment is determined to be illegal, invalid or
unenforceable under any present or future law by the final judgment of a court of competent
jurisdiction, the remainder of this Amendment will not be affected thereby. It is the intention of
the parties that if any such provision is held to be invalid, illegal or unenforceable, there will
be added in lieu thereof an enforceable provision as similar in terms to such provision as is
possible, and that such added provision will be legal, valid and enforceable.

12. This Amendment is delivered to Bank in The Commonwealth of Massachusetts and it is the desire
and intention of the parties that this Amendment and the Loan Documents be in all respects
interpreted according to the laws of The Commonwealth of Massachusetts. Borrower specifically and
irrevocably consents to the personal and subject matter, jurisdiction and venue of any court of The
Commonwealth of Massachusetts sitting in the counties of Suffolk or Middlesex or in the District
Court of the United States for the District of Massachusetts with respect to all matters concerning
this Amendment or the Loan Documents or the enforcement of any of the foregoing.

13. This Amendment may be executed in one or more counterparts, each of which will be deemed an
original document, but all of which will constitute a single document. This Amendment will not be
binding on or constitute evidence of a contract between the parties until such time as a
counterpart of this document has been executed by each of the parties and delivered to Bank.

3

 

WITNESS our hands and seals effective as of December 31, 2007.

	 	 	 	 	 	 	 
	WITNESS (to all)	 	BORROWER:	 	 
	 	 	VIRTUSA CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ [ILLEGIBLE]

	 	By:  /s/ [ILLEGIBLE]
	 	 
	 

	 	 
	 	 
	[ILLEGIBLE]	 	duly authorized VP & General Course 	 	 
	[ILLEGIBLE]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	BANK:	 	 	 	 
	 	 	RBS CITIZENS, N.A.	 	 
	 
	 	 	 	 	 	 
	/s/ [ILLEGIBLE]

	 	By:   /s/  Victoria Lazzell
	 	 
	 

	 	 
	 	 
	 	 	Victoria Lazzell, Senior Vice President	 	 

4

 

EXHIBIT A

Disclosure Schedule to Second Amendment to Amended and Restated Credit Agreement

5

 

THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

This Third Amendment (this “Amendment”) is made as of February 7, 2008 to that certain Amended
and Restated Credit Agreement dated September 29, 2006, as previously amended by First Amendment to
Amended and Restated Credit Agreement dated as of September 30, 2007 and Second Amendment to
Amended and Restated Credit Agreement dated as of December 31, 2007 (the “Credit Agreement”)
between CITIZENS BANK OF MASSACHUSETTS, now known as RBS CITIZENS, N.A. (“Bank”) and VIRTUSA
CORPORATION, a Delaware corporation with an address of 2000 West Park Drive, Westborough,
Massachusetts 01581 (“Borrower”). Capitalized terms used and not defined in this Amendment shall
have the meanings ascribed to them in the Credit Agreement.

RECITALS

Borrower has requested that Bank consent to the pledging by Borrower or Virtusa Securities
Corporation of up to $5,000,000.00 in cash and securities to J. P. Morgan Chase & Co. in connection
with certain foreign exchange accommodations for the benefit of Borrower and its affiliates.
Pursuant to Section 7.3 of the Credit Agreement, Borrower and Virtusa Securities Corporation may
not grant a security interest in their personal property without the consent of Bank.

Bank is willing to consent to such pledge, and has issued a consent letter regarding such
transaction dated January 28, 2008 in the form of Exhibit A, conditioned upon certain
amendments to the Credit Agreement as further set forth herein.

AGREEMENT

In consideration of the foregoing, of the undertakings of Borrower and Bank herein and for other
good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

1. Sections 6.2(a) and 6.2(b) of the Credit Agreement are hereby deleted in their entirety and are
replaced with the following provisions:

     “(a) The Borrower and Virtusa Securities Corporation shall at all times maintain aggregate
unpledged and unrestricted cash and cash equivalents in United States-based accounts, or otherwise
on hand in the United States, of not less than $10,000,000.00, net of any outstanding Loans or
Reimbursement Obligations.

     (b) The Borrower and its Subsidiaries shall at all times maintain aggregate unpledged and
unrestricted cash and cash equivalents, including both foreign-based accounts and United
States-based accounts of at least $15,000,000.00.”

1

 

2. Except as set forth on the disclosure schedule attached hereto as Exhibit B, Borrower
represents and warrants that all of the representations and warranties made by Borrower in the
Credit Agreement and other Loan Documents are and continue to be true and correct on the date
hereof, except to the extent that any of such representations and warranties relate by their terms
solely to a date prior to date of this Amendment. Except as set forth on the disclosure schedule
attached hereto as Exhibit B, Borrower hereby ratifies and confirms all of its covenants
and agreements contained in the Credit Agreement and represents that it is not aware of any default
of any of the terms and provisions of the Credit Agreement.

3. Borrower further represents and warrants that this Amendment is its valid and binding
obligation, enforceable against it in accordance with its terms, except as may be affected by
bankruptcy and other similar laws of general application affecting the rights and remedies of
creditors.

4. Borrower shall promptly execute and deliver such further documents, instruments and agreements
and take such further action as Bank may reasonably request, in its sole discretion, to effect the
purposes of this Amendment and the Credit Agreement and other Loan Documents, including, but not
limited to the execution and delivery of all documents necessary or reasonably required by Bank to
ensure that Bank has perfected liens on all assets of Borrower to the extent originally provided
under the Credit Agreement and the other Loan Documents. Borrower hereby appoints any officer or
agent of Bank as Borrower’s true and lawful attorney in fact, with power of substitution to endorse
the name of Borrower or any of their officers or agents in such regard, exercisable by Bank during
the continuance of an Event of Default.

5. Except as otherwise expressly provided in this Amendment, nothing in this Amendment shall extend
to or affect in any way any of the Obligations or any of the rights and remedies of Bank arising
under the Credit Agreement and other Loan Documents, and Bank shall not be deemed to have waived
any or all of such rights and remedies with respect to any Event of Default or event or condition
which, with notice or the lapse of time, would become an Event of a Default and which, upon
Borrower’s execution and delivery of this Amendment, might otherwise exist or which might hereafter
occur.

6. By execution of this Amendment, Borrower acknowledges and confirms that it does not, as of the
date of this Amendment, have any offsets, defenses or claims against Bank or any of its officers,
agents, directors or employees whether asserted or unasserted to the Obligations.

7. To the extent possible and except for the specific changes to the Credit Agreement effected
hereby, this Amendment shall be construed to be consistent with the provisions of the Credit
Agreement. In the event of any inconsistency between the provisions of this Amendment and any other
document (including, without limitation, any Loan Document), instrument, or agreement entered into
by and between Bank and Borrower, the provisions of this Amendment shall govern and control. This
Amendment shall be binding upon Bank and Borrower, and their representatives, successors, and
assigns, and shall inure to the benefit of Bank and Borrower and their respective successors and
assigns. This Amendment and all documents, instruments, and agreements executed in connection
herewith incorporate all of the discussions and negotiations

2

 

between Borrower and Bank, either expressed or implied, concerning the matters included herein and
in such other documents, instruments and agreements, any statute, custom, or usage to the contrary
notwithstanding. No such discussions or negotiations shall limit, modify, or otherwise affect the
provisions hereof. No modification, amendment, or waiver of any provision of this Amendment, or any
provision of any other document, instrument, or agreement between any Borrower and Bank shall be
effective unless executed in writing by the party to be charged with such modification, amendment,
or waiver.

8. Borrower acknowledges and agrees that it shall promptly pay to Bank the full amount of all
reasonable out-of-pocket costs and expenses of Bank incurred by Bank in preparation and
documentation of this Amendment and all documents ancillary hereto or incurred by Bank after the
date of this Amendment in connection with administration of the Obligations or enforcement of any
rights of Bank under the Credit Agreement and other Loan Documents or otherwise in respect of any
of the Obligations.

9. If any clause or provision of this Amendment is determined to be illegal, invalid or
unenforceable under any present or future law by the final judgment of a court of competent
jurisdiction, the remainder of this Amendment will not be affected thereby. It is the intention of
the parties that if any such provision is held to be invalid, illegal or unenforceable, there will
be added in lieu thereof an enforceable provision as similar in terms to such provision as is
possible, and that such added provision will be legal, valid and enforceable.

10. This Amendment is delivered to Bank in The Commonwealth of Massachusetts and it is the desire
and intention of the parties that this Amendment and the Loan Documents be in all respects
interpreted according to the laws of The Commonwealth of Massachusetts. Borrower specifically and
irrevocably consents to the personal and subject matter, jurisdiction and venue of any court of The
Commonwealth of Massachusetts sitting in the counties of Suffolk or Middlesex or in the District
Court of the United States for the District of Massachusetts with respect to all matters concerning
this Amendment or the Loan Documents or the enforcement of any of the foregoing.

11. This Amendment may be executed in one or more counterparts, each of which will be deemed an
original document, but all of which will constitute a single document. This Amendment will not be
binding on or constitute evidence of a contract between the parties until such time as a
counterpart of this document has been executed by each of the parties and delivered to Bank.

3

 

WITNESS our hands and seals effective as of January 28, 2008.

	 	 	 	 	 	 	 
	WITNESS (to all)	 	 	 	BORROWER:
	 	 	 	 	VIRTUSA CORPORATION
	 
	 	 	 	 	 	 
	(ILLEGIBLE)

	 	 	 	By:
	 	/s/ (ILLEGIBLE)
	 

	 	 	 	 	 	 
	(ILLEGIBLE)	 	 	 	duly authorized
	 
	 	 	 	 	 	 
	 	 	 	 	BANK:
	 	 	 	 	RBS CITIZENS, N.A.
	 
	 	 	 	 	 	 
	(ILLEGIBLE)

	 	 	 	By
	 	/s/ (ILLEGIBLE)
	 

	 	 	 	 	 	 
	 	 	 	 	Victoria Lazzell, Senior Vice President

4

 

EXHIBIT A

CONSENT LETTER

Attach copy of fully signed letter dated January 28, 2008

5

 

	 	 	 
	

	 	Victoria P. Lazzell

Senior Vice President
	28 January 2008

	 	Technology Banking Division
	 

	 	Citizens Bank of Massachusetts
	 

	 	53 State Street. 8th Floor
	Paul D. Tutun, Esq.

	 	Boston, MA 02109
	Vice President and General Counsel

	 	Phone 617-994-7124 Fax 617-742-9548
	Virtusa Corporation

	 	Victoria lazzell@ citizens bank.com
	2000 West Park Drive
	 	 
	Westborough, MA 01581
	 	 

Dear
Mr. Tutun,

Reference is made to the loans and all loan documents, as have been amended from time to
time, including the Amended and Restated Credit Agreement dated September 29, 2006 (“Credit
Agreement’’), the First Amendment to Amended and Restated Credit Agreement dated September
30, 2007 and Second Amendment to Amended and Restated Credit Agreement dated December 31,
2007, by and between Virtusa Corporation (“Borrower”), a Delaware corporation with an
address of 2000 West Park Drive Westborough, MA 01581 and RBS Citizens, National
Association, (“Bank”).

Borrower has requested that Lender provide its consent to a proposed transaction
(“Transaction”) with JPMorgan Chase & Co. (“JP Morgan”} whereby Virtusa Corporation or
Virtusa Securities Corporation will pledge up to $5 million of its cash balances to
JPMorgan to facilitate various foreign exchange transactions for the benefit of Borrower
and its related entities. This transaction violates Section 7.3 of the Credit Agreement.

Please be advised that Lender hereby consents to the Transaction. Lender hereby gives this
consent solely for the Transaction described above and does not waive or consent to any
other violations of the Credit Agreement Additionally, Lender’s consent is subject to
Borrower’s agreement, as evidenced by its signature below, to execute an amendment within 5
business days to Section 6.2 (a) and 6.2 (b) of the Credit Agreement to exclude all cash
balances restricted by this Transaction from the calculation of its cash requirements.
All other terms of the Credit Agreement, as amended, remain in full force and effect.

Sincerely,

Agreed:

Virtusa Corporation

	 	 	 	 	 
	By:
	 	(ILLEGIBLE)	 	 
	 

	 	 

	 	 
	Name:
	 	(ILLEGIBLE)	 	 
	 

	 	 

	 	 
	Date:
	 	Jan 28, 2008	 	 
	 

	 	 

	 	 

 

 

EXHIBIT B

Disclosure Schedule to Third Amendment to Amended and Restated Credit Agreement

6

 

FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

This Fourth Amendment (this “Amendment”) is made as of March 31, 2008 to that certain Amended and
Restated Credit Agreement dated September 29, 2006, as previously amended by First Amendment to
Amended and Restated Credit Agreement dated as of September 30, 2007, Second Amendment to Amended
and Restated Credit Agreement dated as of December 30, 2007, and Third Amendment to Amended and
Restated Credit Agreement dated as of February 7, 2008 (the “Credit Agreement”) between RBS
CITIZENS, N.A., successor by merger to Citizens Bank of Massachusetts (“Bank”) and VIRTUS A
CORPORATION, a Delaware corporation with an address of 2000 West Park Drive, Westborough,
Massachusetts 01581 (“Borrower”). Capitalized terms used and not defined in this Amendment shall
have the meanings ascribed to them in the Credit Agreement.

RECITALS

Borrower has requested that Bank agree to extend the Revolving Credit Maturity Date through
September 30, 2008.

Bank is amenable to so extending the Revolving Credit Maturity Date, but only on the terms and
conditions set forth in the Credit Agreement as amended hereby.

AGREEMENT

In consideration of the foregoing, of the undertakings of Borrower and Bank herein and for other
good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

     1. Effective March 31, 2008, the definitions of the terms “FX Reserves” and “Revolving
Credit
Maturity Date” contained in Section 1.1 of the Credit Agreement are deleted and replaced
with
the following definitions:

     “‘FX Reseryes’ means, at any time of determination of the Borrowing Base, an amount equal to
15.0% (or such other percentage as Lender may determine is appropriate for the respective
currencies of such contracts at such time) of the face amount (in US Dollars) of all foreign
exchange contracts entered into in connection with FX Transactions.

     ‘Revolving Credit Maturity Date.’ September 30, 2008.”

2. The following definition is hereby added to Section 1.1 of the Credit Agreement in
appropriate alphabetical order:

     “‘Hedging Contracts’ means, interest rate swap agreements, interest rate cap agreements and
interest rate collar agreements, or any other agreements or arrangements entered into between the
Borrower and the Bank and designed to protect the Borrower against fluctuations in interest
rates or currency exchange rates.”

1

 

3. Section 2.7(b) of the Credit Agreement is hereby deleted in its entirety and is replaced with
the following text:

     “(b) If the Revolving Credit Commitment shall have been terminated or the Obligations shall
have been declared immediately due and payable pursuant to Section 8.2, all funds received from or
on behalf of the Borrower (including as proceeds of Collateral) by the Lender in respect of
Obligations, shall be applied by the Lender in the following manner and order: (i) first, to
reimburse the Lender for any amounts payable pursuant to Sections 10.2 and 11.3 hereof; (ii)
second, to the payment of Commitment Fees, Letter of Credit Fees and any other fees payable
hereunder; (iii) third, to the payment of interest due on the Loans and the Reimbursement
Obligations; (iv) fourth, to the payment of the outstanding principal balance of the Loans and the
Reimbursement Obligations, pro rata to the outstanding principal balance of each, and to pay any
breakage costs and fees associated with Hedging Contracts, and to provide the Lender with cash
collateral for any issued and outstanding Letters of Credit, Lender’s exposure on Hedging Contracts
and Lender’s exposure on FX Transactions in an amount determined by Lender to be necessary to
secure such Obligations; (v) fifth, to the payment of any other Obligations payable by the
Borrower, pro rata to the outstanding principal balance of each; and (vi) any remaining funds shall
be paid to whoever shall be entitled thereto or as a court of competent jurisdiction shall direct.
In the event that funds received are not adequate to provide the Lender with cash collateral for
all issued and outstanding Letters of Credit and Lender’s exposure on FX Transactions, Borrower
shall immediately deposit with Lender cash collateral determined by Lender to be necessary to
secure such Obligations,”.

4. Section 8.2(c) of the Credit Agreement is hereby deleted in its entirety and is replaced with
the following text:

     “(c) The Borrower shall immediately pledge to Lender cash collateral in an amount determined
by Lender to be sufficient to fully secure any Obligations of Borrower to Lender with respect to
(1) any issued Letters of Credit and (2) Lender’s exposure on FX Transactions; and”

5. All references to Bank or to Citizens Bank of Massachusetts in the Credit Agreement and any
of the documents, instruments and agreements shall be deemed to be mean and refer to RBS
CITIZENS, N.A.

6. Except as set forth on the disclosure schedule attached hereto as Exhibit A, Borrower
represents and warrants that all of the representations and warranties made by Borrower in the
Credit Agreement and other Loan Documents are and continue to be true and correct on the date
hereof, except to the extent that any of such representations and warranties relate by their terms
solely to a date prior to date of this Amendment. Except as set forth on the disclosure schedule
attached hereto as Exhibit A, Borrower hereby ratifies and confirms all of its covenants
and
agreements contained in the Credit Agreement and represents that it is not aware of any default of
any of the terms and provisions of the Credit Agreement.

2

 

7. Borrower further represents and warrants that this Amendment is its valid and binding
obligation, enforceable against it in accordance with its terms, except as may be affected by
bankruptcy and other similar laws of general application affecting the rights and remedies of
creditors.

8. Borrower shall promptly execute and deliver such further documents, instruments and
agreements and take such further action as Bank may reasonably request, in its sole discretion, to
effect the purposes of this Amendment and the Credit Agreement and other Loan Documents,
including, but not limited to the execution and delivery of all documents necessary or reasonably
required by Bank to ensure that Bank has perfected liens on all assets of Borrower to the extent
originally provided under the Credit Agreement and the other Loan Documents. Borrower hereby
appoints any officer or agent of Bank as Borrower’s true and lawful attorney in fact, with power
of substitution to endorse the name of Borrower or any of their officers or agents in such regard,
exercisable by Bank during the continuance of an Event of Default.

9. Except as otherwise expressly provided in this Amendment, nothing in this Amendment shall
extend to or affect in any way any of the Obligations or any of the rights and remedies of Bank
arising under the Credit Agreement and other Loan Documents, and Bank shall not be deemed to
have waived any or all of such rights and remedies with respect to any Event of Default or event
or condition which, with notice or the lapse of time, would become an Event of a Default and
which, upon Borrower’s execution and delivery of this Amendment, might otherwise exist or
which might hereafter occur.

10. By execution of this Amendment, Borrower acknowledges and confirms that it does not, as
of the date of this Amendment, have any offsets, defenses or claims against Bank or any of its
officers, agents, directors or employees whether asserted or unassorted to the Obligations.

11. To the extent possible and except for the specific changes to the Credit Agreement effected
hereby, this Amendment shall be construed to be consistent with the provisions of the Credit
Agreement. In the event of any inconsistency between the provisions of this Amendment and any
other document (including, without limitation, any Loan Document), instrument, or agreement
entered into by and between Bank and Borrower, the provisions of this Amendment shall govern
and control. This Amendment shall be binding upon Bank and Borrower, and their
representatives, successors, and assigns, and shall inure to the benefit of Bank and Borrower and
their respective successors and assigns. This Amendment and all documents, instruments, and
agreements executed in connection herewith incorporate all of the discussions and negotiations
between Borrower and Bank, either expressed or implied, concerning the matters included herein
and in such other documents, instruments and agreements, any statute, custom, or usage to the
contrary notwithstanding. No such discussions or negotiations shall limit, modify, or otherwise
affect the provisions hereof. No modification, amendment, or waiver of any provision of this
Amendment, or any provision of any other document, instrument, or agreement between any
Borrower and Bank shall be effective unless executed in writing by the party to be charged with
such modification, amendment, or waiver.

3

 

12. Borrower acknowledges and agrees that it shall promptly pay to Bank the full amount of all
reasonable out-of-pocket costs and expenses of Bank incurred by Bank in preparation and
documentation of this Amendment and all documents ancillary hereto or incurred by Bank after
the date of this Amendment in connection with administration of the Obligations or enforcement
of any rights of Bank under the Credit Agreement and other Loan Documents or otherwise in
respect of any of the Obligations.

13. If any clause or provision of this Amendment is determined to be illegal, invalid or
unenforceable under any present or future law by the final judgment of a court of competent
jurisdiction, the remainder of this Amendment will not be affected thereby. It is the intention of
the parties that if any such provision is held to be invalid, illegal or unenforceable, there will
be
added in lieu thereof an enforceable provision as similar in terms to such provision as is
possible,
and that such added provision will be legal, valid and enforceable.

14. This Amendment is delivered to Bank in The Commonwealth of Massachusetts and it is the
desire and intention of the parties that this Amendment and the Loan Documents be in all
respects interpreted according to the laws of The Commonwealth of Massachusetts. Borrower
specifically and irrevocably consents to the personal and subject matter, jurisdiction and venue of
any court of The Commonwealth of Massachusetts sitting in the counties of Suffolk or Middlesex
or in the District Court of the United States for the District of Massachusetts with respect to
all
matters concerning this Amendment or the Loan Documents or the enforcement of any of the
foregoing.

15. This Amendment may be executed in one or more counterparts, each of which will be
deemed an original document, but all of which will constitute a single document. This
Amendment will not be binding on or constitute evidence of a contract between the parties until
such time as a counterpart of this document has been executed by each of the parties and
delivered to Bank.

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EXHIBIT A

     Disclosure Schedule to Fourth Amendment to Amended and Restated Credit Agreement

The Company’s Subsidiaries are the following:

Virtusa Securities Corporation

Virtusa UK Limited

Virtusa (India) Private Limited

Virtusa (Sri Lanka) Private Limited

Virtusa International, B.V (Dutch company)

Virtusa Consulting Services Private Limited (Hyderabad, India)

Virtusa Software Services Private Limited (Chennai, India)

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     WITNESS our hands and seals effective as of March 31, 2008.

	 	 	 	 	 	 	 	 	 
	WITNESS (to all)	 	 	 	BORROWER:	 	 
	 	 	 	 	VIRTUSA CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	[ILLEGIBLE]
 

	 	 	 	By:
	 	/s/ [ILLEGIBLE]
 

	 	

	 	 	 	 	duly authorized	 
	 
	 	 	 	 	 	 	 
	 	 	 	 	BANK:	 
	 	 	 	 	RBS CITIZENS, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	[ILLEGIBLE]
 

	 	 	 	By:
	 	/s/ [ILLEGIBLE]
 

	 	 
	 	 	 	 	Victoria Lazzell, Senior Vice President	 	 

6

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