Document:

exv10w5w1

 

Exhibit 10.5.1

CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION.

ESSENTIAL PROVISIONS

	 	 	 
	LESSOR:

	 	AYALA LAND, INC.
	 
	 	 
	LESSEE:

	 	PEOPLESUPPORT (PHILIPPINES), INC.
	 
	 	 
	TERM OF LEASE:

	 	Ten (10) years, from August 1, 2005 to July 31, 2015
	 
	 	 
	LEASED PREMISES:

	 	Office Unit – leaseable area of approximately 15,042.50 square meters
	

	 	Parking Slot/s – 146 parking slots
	 
	 	 
	

	 	The Leased Premises shall include the total floor space of the ground floor
lobby (approximately 254.92 square meters) and the storage space at the
second floor of the Building (with an area of approximately 168.91 square
meters) only while and for so long as the LESSEE shall continue to lease the
Office Unit at the ground floor.
	 
	 	 
	LOCATION:

	 	Office Unit – Ground, third, fourth and fifth floors
	

	 	Parking Slot/s – Second floor
	 
	 	 
	USE:

	 	Office Unit – Office
	

	 	Parking Slot/s – Parking
	 
	 	 
	LESSEE’S OBLIGATIONS:
	 	 
	 
	 	 
	MONTHLY RENT:

	 	Office Unit — PHP * * * per month per square
meter of leaseable area for the ground
floor and PHP * * * per month per square meter
of leaseable area for the third, fourth,
and fifth floors.
	 
	 	 
	

	 	Parking Slots – PHP * * * per month per slot.
	 
	 	 
	

	 	The above monthly lease rates for the Office Unit and Parking Slots
shall be applicable for the first year of the lease and shall be subject to
the agreed rate of increase for the succeeding years.
	 
	 	 
	

	 	For the first five (5) years of the lease term, the rent shall be payable on
a monthly basis, on or before the 5th working day of the calendar
month to which the rent corresponds, without necessity of demand, at the
Building Administration office. Thereafter, commencing on the sixth
(6th) year of the lease term, the rent shall be payable on a
quarterly basis; the amount corresponding to the rent for the first two (2)
months of the particular calendar quarter shall be due on or before the
5th working day of the calendar quarter to which the rent
corresponds, and the rent for the third (3rd) month of that
particular quarter shall be due on or before the fifth (5th)
working day of the second month of that quarter, without necessity of
demand, also at the Building Administration office.
	 
	 	 
	SECURITY DEPOSIT:

	 	PHP * * * for the Office Unit and PHP * * * for the Parking Slots, which shall at all
times be maintained at such amounts; such amounts shall remain fixed and shall not be subject
to escalation for the duration of the term of lease; payable on or before the due date
specified in the applicable statement of account (Art. 4.5)

*Confidential material redacted and filed separately with the Commission.

 

 

ADVANCE RENTAL: PHP * * * for the Office Unit and PHP * * * for the Parking Slots,
which shall at all times be maintained at an amount equivalent to three (3)
months’ rent, to be applied against rent due for the last three (3) months
of the lease; subject to adjustment if rent increases; payable on or before
the due date specified in the applicable statement of account (Art. 4.6)

COMMON AREA CHARGES: PHP * * * per month per square meter of leaseable area, to be due and payable
immediately upon effectivity of this lease on or before the date specified in the applicable
statement of account (Art. 5.3)

PUBLIC UTILITIES AND SERVICES: Shall begin to accrue upon turnover of the Leased Premises and shall
be due and payable on or before the date specified in the applicable statement of account
(Art. 6)

o      
AIRCON: PHP * * * per month per square meter of leaseable area

o      
WATER: Based on actual consumption (meter reading)

o       ELECTRICITY: Based on actual consumption (meter reading)

o       PEST CONTROL: Reimbursement for the cost of providing additional pest
control services for the Leased Premises. It is expressly understood
that charges for basic pest control services shall be included in the
Common Area Charges.

o       OTHER UTILITIES: Based on actual consumption on charges for
telephone, facsimile, telecom, emergency power and other public
services or utilities consumed or supplied in the Leased Premises

INTEREST/PENALTY: All past due accounts are subject to an interest of * * * per month and a
penalty of * * * per month, to be computed daily and compounded monthly (Art. 8)

*Confidential material redacted and filed separately with the Commission.

 

 

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CONTRACT OF LEASE

     This Contract of Lease, made and entered into this 14th day of January 2005 at
the City of Makati, Philippines, by and between:

AYALA LAND, INC., a corporation duly organized and existing under
and by virtue of the laws of the Philippines, with principal place
of business and office at Tower One, Ayala Triangle, Ayala Avenue,
City of Makati, represented herein by its duly authorized
Attorneys-in-Fact, JAIME I. AYALA and MA. VICTORIA E. ANONUEVO, by
virtue of the powers conferred upon them (hereinafter referred to as
the “LESSOR”)

- A N D -

PEOPLESUPPORT (PHILIPPINES), INC., a corporation duly organized and
existing under and by virtue of the laws of the Philippines, with
principal place of business and office at 12th to
14th Floors, Philamlife Tower, 8767 Paseo de Roxas, City
of Makati, represented herein by its President, RAINERIO M. BORJA,
by virtue of the powers conferred upon him (hereinafter referred to
as the “LESSEE”)

WITNESSETH THAT:

     For and in consideration of the payment of rents and other sums due hereunder, and the
faithful compliance with all the conditions and covenants hereinafter contained, the LESSOR hereby
leases, lets, and demises unto the LESSEE, and the latter does hereby accept under lease, floor
space and a specific number of parking slots respectively, constituting the Leased Premises, as
shown in the attached sketch plans marked as Annex A, which are made an integral part of this
Contract.

     This lease is granted by the LESSOR and accepted by the LESSEE subject to the following terms,
covenants, conditions and restrictions.

ARTICLE 1 — DEFINITIONS AND INTERPRETATION

     1.1 DEFINITIONS — As used herein, the following terms shall have the following
respective meanings:

     “Association” shall refer to the association specified in Annex B, a non-stock, non-profit
corporation, organized for the purpose, among others, of promoting and advancing the

 

 

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general welfare, prosperity of the owners, lessees and occupants of the buildings located at the
Makati Business District.

     “Building” shall refer to the building identified in Annex B where the Leased Premises are
located.

     “Building Parking Area” shall refer to the parking area located within the Building and its
lot property boundaries and designated for the use of the lessees of the Building subject to the
terms and conditions of this Contract entered into by the LESSEE for the use of the Leased Premises
located therein.

     “Common Areas” shall refer to all areas and facilities located or installed within or affixed
to the Building, which are installed and provided by the LESSOR at its own expense and designated
by the LESSOR for the general use and convenience of all, some or one of the lessees in the
Building, their respective clients, employees, customers and guests.

     “Force Majeure” shall mean an act, event or cause, which is unexpected or unforeseen, or if
foreseen, must be impossible to avoid, or which is beyond the reasonable control of the LESSOR or
the LESSEE. This term includes rebellion, insurrection, labor unrest, lockout, work stoppage,
strikes on a citywide or nationwide scale, flood, typhoon, earthquake, robbery, theft, arson, bomb
threats, terrorism, or any other crime.

     “Leased Premises” shall refer to the area specifically described in Annex B.

     1.2 INTERPRETATION — The following rules shall be observed and applied in this
Contract, except when the context clearly indicates otherwise.

     a) The masculine gender includes the feminine and neuter, and vice versa.

     b) The singular number includes the plural, the plural singular.

     1.3 HEADINGS — The headings or titles of each Article or sub-article herein are used
for convenience only, and do not in any way control, limit or qualify the actual text or meaning of
each Article or sub-article.

ARTICLE 2 — LEASE TERM AND DELIVERY

OF LEASED PREMISES

     2.1 TERM – This lease shall be for a term specified in Annex B. Subject to the
following paragraph, unless otherwise renewed under the conditions established thereunder, this
lease shall not be deemed extended beyond the date specified herein for its termination for any
reason whatsoever. There shall be no tacit renewal of this Contract, notwithstanding the
continuation of the LESSEE in the possession of the Leased Premises for any length of time after
expiration of the term of this lease.

     This lease may be renewed for a period specified in Annex B, upon the written agreement of the
LESSOR and the LESSEE and under the same terms and conditions; provided that, the LESSEE shall have
faithfully complied with all the terms of this Contract.

 

 

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The renewal of the lease shall be subject to additional terms and conditions specified in Annex B.

     2.2 DELIVERY OF LEASED PREMISES — The LESSOR shall deliver to the LESSEE physical
possession of the Leased Premises on or before the date specified in Annex B for the delivery of
the Leased Premises to the LESSEE. The LESSOR shall notify the LESSEE in writing of the scheduled
date of delivery through a letter. The LESSOR shall deliver the Leased Premises in good condition
to the LESSEE on the effectivity date of the lease term as specified in Annex B. The delivery of
the Leased Premises shall be subject to additional terms and conditions specified in Annex B.

     The LESSOR reserves the right to rescind this Contract when the LESSEE fails to accept the
Leased Premises within thirty (30) days from the scheduled date of delivery by the LESSOR as
specified in the letter.

     If the LESSOR is unable to transfer physical possession of the Leased Premises to the LESSEE
on or before the date specified in Annex B for the delivery of Leased Premises due to any reason
beyond the control of LESSOR, the LESSOR shall not be subject to any liability for the failure to
deliver the Leased Premises to the LESSEE on the date specified therefor in Annex B. Neither shall
such failure affect the validity of this lease or the obligations of the LESSEE thereunder;
provided that, the effectivity date of the lease term and the Rental Commencement Date shall be
deferred to a date to be agreed upon by the LESSOR and the LESSEE.

ARTICLE 3 — EXTENT AND USE OF THE LEASED PREMISES

     3.1 USE — The Office Unit shall be used exclusively as an office while the Parking
Slots shall be used exclusively as parking slots for use by the LESSEE and its employees. For
purpose hereof, the use of the Leased Premises as an office shall mean its use for the
administration and management of a business or for the conduct of a profession. Additional
conditions for the use of the parking slots are enumerated in Annex B.

     The LESSEE shall not divert the Leased Premises to other uses, without the prior written
consent of the LESSOR, it being expressly agreed that if, at any time during the term of this lease
and without the previous written consent of the LESSOR, the said premises are used for purposes
other than what has been agreed upon, the LESSOR shall have the option to (a) cancel this Contract
in accordance with Article 14 hereof and the LESSOR shall and thereupon become entitled to exercise
all the rights provided thereunder; (b) increase the rent; or (c) compel the LESSEE to stop the
unauthorized activities.

     3.2 CONDUCT OF BUSINESS — The LESSEE shall at all times, during the term of this
lease, conduct its business in a reputable manner in accordance with the urban design quality of
the Building. All the government permits or licenses which are necessary or appropriate for the
conduct of business by the LESSEE in the Leased Premises shall be obtained by the LESSEE and shall
be maintained by the LESSEE for the duration of the lease term or renewal thereof, and all costs
and expenses to be incurred in connection with these permits or licenses shall be for the account
of the LESSEE.

 

 

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     3.3 COMMON USE — The lease of the Leased Premises from the LESSOR shall include the
use, in common with the LESSEE and other lessees of the Building, of the Common Areas of the
Building as far as the same are necessary for the use or enjoyment of the Leased Premises and
subject to the right of the LESSOR to restrict such use in any way.

     3.4 EXCLUSIVE RIGHTS OF LESSOR — The grant of this lease shall, however, not prejudice
or adversely affect the following exclusive and absolute rights of the LESSOR to the extent
specified below:

     (a) to provide for the free and uninterrupted passage and running of water, drainage,
electricity, telecommunications or other public utilities or services through the installation of
conduits, pipes, wires, cables or ducts as are now or may be hereafter be installed in, on or under
the Leased Premises, serving or capable of serving the Building or any adjoining property, and to
enter the Leased Premises to inspect, repair or maintain such conduits, pipes, wires, cables or
ducts after prior notice to the LESSEE except in cases of emergency. Any such activity shall be
effected in a manner as to cause the least inconvenience to the LESSEE, its employees and/or
guests.

     (b) to erect, alter or consent to the erection or alteration of any building located or to be
located on any adjoining or neighboring property, notwithstanding that such erection or alteration
may diminish the access of light, view or air enjoyed by the Leased Premises, or to deal with such
neighboring or adjoining property as the LESSOR shall see fit;

     (c) to enjoy subjacent and lateral support from the Leased Premises for the remainder of the
Building;

     (d) to undertake the improvement of the Building or any development work in an adjoining lot,
within the vicinity of the Building in such a manner as to cause the least inconvenience to the
LESSEE, its employees, guests, customers and clients, and for this purpose, the LESSEE shall not
hold the LESSOR liable for any resulting disturbance or discomfort arising out of such development
work or improvement.

     3.5 EXTENT OF LEASED PREMISES — This lease does not extend to the outside portions of
the Building corresponding to or opposite the Leased Premises. The Common Areas within the
Building are likewise not part of the Leased Premises, and no other property of the LESSEE shall be
placed therein or thereon. The LESSOR shall have the right to cause the removal of the property
belonging to the LESSEE found on or within the corridors, hallways or other Common Areas of the
Building and charge the cost of removal, handling and storage (if necessary) to the LESSEE.

     3.6 NO GOODWILL — The grant to the LESSEE of the physical possession, use and
enjoyment of the Leased Premises confers no goodwill or patronage rights over the Leased Premises
to the LESSEE, it being recognized that such rights exclusively belong to the LESSOR as owner of
the Leased Premises. Neither shall the LESSEE have any right to sell or dispose of said goodwill
or patronage rights to any person.

 

 

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ARTICLE 4 — RENT AND OTHER PAYMENTS

     4.1 COMMENCEMENT OF RENTAL PAYMENT — The commencement of the obligation of the LESSEE
to pay rent and the determination of the amount of rent due from the LESSEE, excluding the Value
Added Tax (VAT), shall be governed by the provisions of Annex B.

     4.2 TAXES — Other than the LESSOR’s income taxes or taxes required to be withheld from
the rentals due to the LESSOR but which shall be credited against the LESSOR’s income taxes, all
taxes to be due by reason of the receipt of rentals by the LESSOR, including the VAT (if any), and
all other amounts which the LESSEE is required to pay the LESSOR as provided thereunder, as well as
other taxes accruing by reason of the execution of this Contract shall be for the account of the
LESSEE.

     Documentary stamp taxes due on this Contract of Lease shall be borne equally by the LESSOR and
the LESSEE to be shared on a 50-50 basis. The LESSEE shall remit its payment for its 50% share of
the documentary stamp taxes to the LESSOR upon the execution of this Contract.

     4.3 MANNER OF PAYMENT — The rent shall be liquidated and paid on a monthly basis for
the first five (5) years of the lease term, payable on or before the fifth (5th) working day of the
calendar month to which such rent corresponds at the Building Administration office or at such
other place as the LESSOR may by notice in writing to the LESSEE from time to time direct, without
necessity of demand or the performance by a collector of collection services. Commencing on the
sixth (6th) year of the lease term, the rent shall be liquidated and paid on a quarterly basis; the
amount corresponding to the monthly rent for the first two (2) months of the calendar quarter shall
be paid on or before the fifth (5th) working day of the calendar quarter to which such
rent corresponds, and the amount corresponding to the monthly rent for the third (3rd)
month of that quarter shall be paid on or before the fifth (5th) working day of the
second month of that quarter, without necessity of demand or the performance by a collector of
collection services. Payment of rentals shall be made either in cash or in check made payable in
the name of the Ayala Land, Inc. The receipt of a check in payment of the rentals due thereunder
shall not produce the effect of payment until the amount thereof is actually received.

     Payment of rentals shall be made net of the required withholding tax on rentals, which is
currently subject to a five percent (5%) withholding tax as provided under the Expanded Withholding
Tax (EWT) System under Revenue Regulation No. 2-98, as amended. In the event that there shall be a
new law imposing a higher or lower rate of withholding tax, the same shall be applied to the rental
payment. The LESSEE shall furnish the LESSOR with a statement of the tax withheld and the number
and date of revenue tax receipts issued. The LESSEE shall remit the taxes withheld directly to the
Bureau of Internal Revenue and shall indicate in the creditable withholding tax return to be filed
with the latter that the taxes being withheld are to be credited to the LESSOR. Proof of such
remittance shall be submitted to the LESSOR within three (3) business days from such remittance. It
shall be understood, however, that the LESSOR shall have the right at any time during the lease
term or renewal thereof to designate a different manner of payment of the rentals due thereunder,
including designating another party to whom the payment of such withholding taxes shall be
credited,

 

 

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to the extent permitted by applicable law and the regulations of the Bureau of Internal Revenue.

     4.4 CONSTRUCTION BOND – Within seven (7) days prior to any construction, fit-out or
renovation within the Leased Premises or any portion thereof, the LESSEE shall cause its contractor
to submit a cash construction bond equivalent to one (1) month’s rent in effect at the time
construction is to be undertaken by the LESSEE, in an amount specified in Annex B, to answer and
stand as security for the repair or reconstruction of any damage caused to the property of the
LESSOR or of any tenant or occupant in the Building arising out of or in connection with the fault
or negligence of the LESSEE, its contractors, suppliers or workers undertaking such construction or
renovation or the failure of the LESSEE to comply with the Construction Guidelines and House Rules,
and all other requirements prescribed by the LESSOR for the performance of such construction or
renovation work. The construction bond shall be returned to the LESSEE without interest after the
completion of construction or renovation work, less any construction-related charges due to the
LESSOR, subject to the LESSEE’s compliance with all the conditions specified for the return of the
bond under the Construction Guidelines and House Rules.

     The construction bond shall be subject to the additional terms and conditions specified in
Annex B.

     4.5 SECURITY DEPOSIT — On or before the due date specified in the applicable statement
of account to be sent by the LESSOR, the LESSEE shall provide the LESSOR with a security deposit in
cash in an amount specified in Annex B to answer and stand as security for the proper and due
performance of all the LESSEE’s obligations under this Contract. The existence of such security,
however, does not and should not excuse the LESSEE’s non-payment of rent on a quarterly basis, or
of any other sum required to be paid thereunder on or before the due date specified therefor. The
security deposit shall be subject to the additional terms and conditions specified in Annex B.

     The security deposit shall be returned to the LESSEE, without interest, within two (2) months
from the date the LESSEE has completely and satisfactorily vacated and delivered the Leased
Premises to the LESSOR, less whatever amounts the LESSEE may owe the LESSOR or which the LESSOR may
apply against the security deposit as provided thereunder, including the pre-termination penalty as
provided under Annex B hereof. In the event that any amount is applied against or deducted from
the security deposit, the LESSOR shall provide a detailed account of all such deductions. The
LESSEE shall have the option of appointing, at its own cost, an independent assessor to review all
non-utility related deductions. It shall be understood, however, that the application of the
security deposit against any unpaid obligations of the LESSEE including any damage caused by the
LESSEE to the Leased Premises during the moving-out period, shall be effected only upon the
termination of the lease. The LESSOR shall, notwithstanding the delivery of the Leased Premises to
the LESSOR by the LESSEE, have the right to withhold any portion of the security deposit until the
LESSOR shall have received statements of account from utility companies supplying telephone, water,
electric power or public utility services to the Leased Premises, covering the period ending on the
date the LESSEE shall have completely vacated and delivered the Leased Premises to the LESSOR. The
amount withheld shall answer for the payment of such statements of account and the balance thereof
remaining with the LESSOR after such payment shall be returned to the LESSEE without interest.
Likewise,

 

 

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should the LESSEE have any other obligation which remains due and unpaid under any other contract
with the LESSOR, the LESSOR shall have the right to apply the amount of these unpaid obligations
against the security deposit in settlement thereto upon the termination of the lease.

     4.6 ADVANCE RENTAL — On or before the due date specified in the applicable statement
of account, the LESSEE shall pay to the LESSOR an amount equivalent to the current rent for three
(3) months. It shall at all times be maintained at an amount equivalent to three (3) months’ rent
at the prevailing rate, and shall be increased correspondingly as the rental rate increases. This
payment shall be applied against the rent due for the last three (3) months of the lease.

     The advance rental shall be subject to the additional terms and conditions specified in Annex
B.

ARTICLE 5 — COMMON AREAS AND PARKING

     5.1 USE OF COMMON AREAS — The LESSEE shall have the right to use the Common Areas of
the Building in common with all the other lessees of the Building, subject to any rights, powers
and privileges reserved to the LESSOR. It is hereby understood that the LESSEE’s privilege to use
the Common Areas of the Building is not exclusive, and is not made an integral part of this lease.
Consequently, the use by the LESSEE of such areas may be restricted or regulated pursuant to this
Article.

     5.2 OPERATION OF COMMON AREAS — During the term of this lease, the LESSOR shall
operate, manage, and maintain the Common Areas of the Building, or appoint any firm or person to
operate, manage and maintain the Common Areas. The use of the Common Areas shall be subject to
reasonable regulations and charges which may be imposed from time to time by the LESSOR.

     5.3 COMMON AREA CHARGES — Commencing upon the effectivity of this lease and in
addition to the payment of rental and other amounts due thereunder, the LESSEE shall pay to the
LESSOR on or before the due date specified in the applicable statement of account, the LESSEE’s
monthly share in all costs and expenses incurred or to be incurred in the repair and maintenance of
Common Areas at a monthly rate per square meter of the leaseable area occupied by the Leased
Premises, as specified in Annex B. Common Area expenses shall include expenses and other costs
incurred in the maintenance and repair of Common Areas in the Building, such as but not limited to,
expenses for the ground maintenance, drainage, electrical facilities, landscape maintenance,
janitorial services, pest control services, security services, water, air-conditioning and
electrical charges.

     The rate or amount of Common Area Charges as specified in Annex B shall be increased annually
at the rate of * * * per annum over the current monthly rate of the Common Area Charges.

     5.4 BUILDING PARKING AREAS — A specific number of parking slots in the Building
Parking Area shall be designated for the exclusive use and benefit of the LESSEE and its employees,
guests and other users as may be authorized by the LESSEE subject to the

*Confidential material redacted and filed separately with the Commission.

 

 

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additional conditions specified in Annex B for the use of such parking slots and subject further,
to the rules and regulations which the LESSOR may cause to be promulgated or imposed from time to
time.

ARTICLE 6 — PUBLIC UTILITIES AND SERVICES

     6.1 AIR-CONDITIONING — Commencing upon the effectivity of this lease and in addition
to the payment of rental and other amounts due thereunder, the LESSEE shall pay to the LESSOR the
cost of providing air-conditioning for the Leased Premises at a monthly rate per square meter of
the leaseable area occupied by the Leased Premises, as provided in Annex B. For this purpose, the
LESSOR shall contract with an independent and reputable company for the maintenance of the
air-conditioning system of the Building and shall bear the cost of such repairs and maintenance
work except those within the Leased Premises. However, it is expressly understood that the LESSOR
shall not under any circumstance be held liable for any breakdown, failure or non-performance of
the air-conditioning units except when such breakdown, failure or non-performance is attributable
to the fault or negligence of the LESSOR, its employees, agents or guests. In the event that the
maintenance and/or operating expenses of the air-conditioning system increase, the amount to be
paid by the LESSEE as hereinabove mentioned shall be increased proportionately, except in cases
where the increase is due solely to the LESSOR’s fault or negligence in which case the LESSOR shall
bear the increase in costs and expenses. In the event that the increase in the maintenance and/or
operating expenses is due to causes attributable to both the LESSOR and the LESSEE, the LESSOR and
the LESSEE shall both be liable for the increase in costs and expenses pro-rata in proportion to
their respective participations or responsibilities in the event causing the increase as agreed by
the parties or as determined by an independent third party designated by and mutually acceptable to
both parties.

     The maintenance and repairs of the variable air volume units, ductworks, aircon booths, and
other related equipment which will be installed by the LESSEE in the Leased Premises for purposes
of air-conditioning shall be for the account of the LESSEE.

     The Leased Premises shall be supplied with air-conditioning 24 hours a day, seven days a week.

     The rate or the amount specified in Annex B shall be correspondingly increased periodically by
either (a) an increase in utility/service charges imposed by the Manila Electric Company
(“Meralco”) or any successor company or service agency responsible for providing or supplying the
utility or service to the Leased Premises, or (b) annually at the rate of * * * per annum
over the current monthly rate of Air-conditioning charges, whichever amount is higher. In the
event, however, that the increase in utility/service charges as imposed by the utility company or
service agency is higher than the prevailing Air-conditioning charges as increased pursuant to this
paragraph, then such increase shall be effective and demandable on or during the month in which the
increase in the charges shall have been implemented by the utility company or service agency.

     The supply of air-conditioning shall be subject to the additional terms and conditions as
specified in Annex B.

*Confidential material redacted and filed separately with the Commission.

 

 

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     6.2 WATER — The LESSEE shall pay for the cost of water consumption in the Leased
Premises and in the comfort rooms in the Building located on the ground, third, fourth and fifth
floors which are designated for the exclusive use of the LESSEE, its clients, guests, customers or
employees at the same rate charged by the Manila Water Company (MWC) to its concessionaires (as may
be adjusted from time to time). The rate shall be applied on the basis of the volume of water
consumption of the Leased Premises and restrooms located on the ground, third, fourth and fifth
floors as evidenced by the water meter/s assigned thereto. Billings for water consumption shall be
sent to the LESSEE on a monthly basis.

     6.3 ELECTRICITY — The LESSEE shall pay and discharge all charges for supplying
electrical power to the Leased Premises at the same rates charged by Meralco to its concessionaires
(as may be adjusted from time to time) based on the number of kilowatts consumed by the Leased
Premises as evidenced by the sub-meter separately provided by the LESSEE for electric consumption
within the Leased Premises. Billings for electric consumption shall be sent to the LESSEE on a
monthly basis.

     6.4 PEST CONTROL — The LESSEE shall reimburse the LESSOR for the actual out-of-pocket
cost of providing additional pest control services for the Leased Premises when such services may
be warranted in the LESSOR’s opinion; provided, that, the need for such additional pest control
services is not attributable to the acts or omissions of persons other than the LESSEE, its
employees, agents, representatives, customers, clients, and guests.

     The LESSOR shall provide basic pest control services for the Building, the costs of which
shall form part of the Common Area Charges.

     6.5 GENERATORS — The LESSEE shall pay and discharge all charges for supplying
emergency power to the Leased Premises at a rate to be determined by the LESSOR. Such rate may be
adjusted as and when the cost of diesel fuel increases. Billings for emergency power consumption
shall be sent to the LESSEE on a monthly basis.

     Additional terms and conditions governing generators are specified in Annex B.

     6.6 OTHER PUBLIC UTILITIES — The LESSEE shall pay and discharge all deposits and
charges for telephone, facsimile, telecommunications and other public services or utilities
consumed or supplied to the Leased Premises; provided that with respect to the public utilities and
services covered by Articles 6.1, 6.2, 6.3, 6.4 or 6.5, the liability of the LESSEE with respect to
the supply and consumption of these services shall be respectively governed by such Articles.

     6.7 MANNER OF PAYMENT — Reimbursement of the aforementioned utilities and/or services
under this Article during any given month, shall be payable to the LESSOR on or before the due date
specified in the applicable statement of account, which date shall be fourteen (14) days from the
receipt by the LESSEE of the statement of account.

     6.8 DISCONNECTION OF UTILITIES — In the event that the LESSEE fails to pay for the
charges or fees incurred in connection with the supply, consumption and use of air-conditioning,
water, electricity, telephone and other public services and utilities to the Leased Premises for a
period of two (2) consecutive months, the LESSOR shall have the right to disconnect or discontinue
the supply thereof for such period as it shall determine; provided,

 

 

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that, before the LESSOR exercises its right to disconnect or discontinue the supply of the public
services or utilities, the LESSOR shall provide the LESSEE with at least ten (10) days prior
written notice of its intent to disconnect or discontinue the public services or utilities. This
right shall be in addition to its other rights provided for in Article 14.2.

     6.9 TELEPHONE - The LESSOR shall provide telephone entrance cables to the Leased
Premises to meet the LESSEE’s requirements for standard telephone lines. However, it shall be the
LESSEE’s responsibility to arrange with the appropriate telecommunications company for the
installation of the LESSEE’s telephone requirements. The LESSEE shall bear the cost of installing
such telephone facilities and other materials used in connecting the LESSEE’s telephone(s) to the
in-house telephone lines of the LESSOR.

     6.10 ADDITIONAL INSTALLATIONS — The LESSEE may, if it so desires, request the LESSOR
for the installation at the Leased Premises and at the LESSEE’s expense of additional comfort rooms
or other public utility fixtures or facilities, including but not limited to, electric, water,
telephone fixtures or facilities. The LESSOR may choose to deny or approve such request at its
discretion or subject its approval of the same to such conditions as the LESSOR may impose. All
permits which may be required for the installation and operation of these additional fixtures and
facilities when so approved by the LESSOR, shall be obtained and maintained by the LESSEE at its
expense. The LESSEE shall also be responsible for the payment of all charges, costs, expenses,
dues, assessments, levies or taxes which may be imposed in connection with the installation,
operation, repair or maintenance of such additional fixtures and facilities. The LESSEE shall
comply with all the rules, regulations and requirements imposed by the appropriate government
agencies or public utility companies in connection therewith.

     For the purpose of obtaining the prior approval of the LESSOR for the installation of
additional public utility or public service facilities in the Leased Premises, the LESSEE shall
submit to the LESSOR the necessary plans and specifications for the installation of the said
facilities or fixtures. Such installation should be made by a licensed electrician or technician
approved or employed by the LESSOR, in such a way as to cause no injury to the Leased Premises or
the Building. The LESSOR reserves the right to require the LESSEE to use the LESSOR’s building
contractor for any renovation of the Leased Premises when in the LESSOR’s best judgment, the
proposed renovation may adversely affect any of warranties or guarantees given by any of the
contractors of the Building. Any resulting additional electrical load of current and structural
load must be within the maximum capacity of the electrical current supplied to the Leased Premises.

     6.11 JANITORIAL SERVICES — The LESSOR shall cause janitorial services to be provided
for the Common Areas on a staggered basis from Monday through Sunday.

     6.12 SECURITY GUARD SERVICES — The LESSOR shall cause security guard services to be
provided for the Building on a 24-hour basis, seven (7) days a week. The number, schedule, and
scope of services to be provided by security guards shall be subject to the discretion of the
LESSOR, it being understood that the LESSOR shall not be accountable or liable for any loss, injury
or damage that may be suffered in the Leased Premises by reason of theft, robbery, arson or any
other crime, unless the same shall be due to the fault or negligence of the LESSOR or its
employees. However, should the LESSEE require

 

 

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additional security guards for any reason whatsoever, the LESSEE shall be liable to pay for any
additional cost the LESSOR may incur in hiring the additional security guards.

     Additional terms and conditions governing the security guard services are specified in Annex
B.

     6.13 ELEVATORS — A sufficient number of elevators shall be maintained in the Building
for the use and automatic operation of the lessees of the Building and their respective employees,
agents, guests and clients.

     6.14 NO RESPONSIBILITY — The LESSOR assumes no responsibility for the inadequacy,
quality or interruption in the utilities or services consumed or supplied in or to the Leased
Premises under this Article 6.

ARTICLE 7 — MEMBERSHIP IN THE ASSOCIATION

     The LESSOR hereby represents that it is a member of the Association. Upon effectivity of this
lease, the LESSEE shall therefore assume a proportionate share in the association dues billed to
the LESSOR, including but not limited to payment of all dues, assessments, interests, penalties and
other amounts imposed by the Association; and the LESSEE shall comply with all existing rules and
regulations promulgated by the Association as well as other competent authorities. The
proportionate share of the LESSEE in the association dues and expenses billed to the LESSOR is
already part of and imputed in the Common Area Charges billed to the LESSEE.

ARTICLE 8 — INTEREST, PENALTY AND

APPLICATION OF PAYMENTS

     The LESSEE shall pay the LESSOR interest on any amount due thereunder which remains unpaid on
the date on which such payment falls due as provided thereunder, at the rate specified in Annex B
or at the maximum prevailing interest rate allowed by law, if said maximum prevailing rate is
higher than the prescribed interest rate per month. Interest shall be computed from the day after
the date payment falls due until payment of the outstanding account is effected in full.

     In addition, all unpaid amounts excluding interest shall be subject to a penalty equivalent to
the rate specified in Annex B based on the total amount remaining unpaid. Penalty charges shall be
computed from the day after the date payment falls due until payment of the outstanding account is
effected in full.

     Interest and penalty charges shall be computed daily and compounded monthly and shall apply to
any and all amounts which remain unpaid on the due date thereof, including, but not limited to
unpaid rent, VAT, EWT, security deposit, advance rental, Common Area charges, Air-conditioning
charges, Water charges, utility charges or association dues.

     The payment of interest and penalty charges as provided thereunder shall not be a substitute
for and shall be in addition to, the payment of the amount otherwise due thereunder,

 

 

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and shall not prejudice the exercise by the LESSOR of any other right or remedy granted to it under
this Contract.

     Any payment received by the LESSOR shall be applied against the statement of account or
billing with the earliest date. In the event that the payment of interest, penalty, rent or other
charges is covered by one statement of account, then the payment received by the LESSOR shall be
applied in the payment of obligations stated therein in the following order of priority: (i)
first, against the interest and penalty due, (ii) and finally, against unpaid rent, VAT, EWT,
security deposit, advance rental, Common Area charges, Air-conditioning charges, Water charges,
utility charges or association dues. Should the payment received be insufficient to completely
settle any outstanding obligation, whether covered in one statement of account or billing, or
otherwise, then subsequent payment(s) to be received from the LESSEE shall be applied in the
payment of such unpaid amount.

ARTICLE 9 — LIEN

     Unpaid rents and charges payable by the LESSEE to the LESSOR for one (1) year under this
Contract shall constitute a preferred lien on all personal properties of the LESSEE found or
located in the Leased Premises in accordance with Articles 2241 and 2243 of the Civil Code. For
this purpose, the LESSOR is hereby authorized to prevent the removal of the said properties from
the Leased Premises or demand their return from any possessor thereof in the event the LESSEE shall
default in any of its payment obligations hereunder, in addition to the exercise of its rights
under Article 14 hereof.

ARTICLE 10 — LESSEE’S ADDITIONAL COVENANTS

     The LESSEE agrees that in addition to its other undertakings under this Contract, and unless
it has obtained the prior written consent of the LESSOR for the performance of an act or deed which
is otherwise prohibited under this Contract:

     10.1 ASSIGNMENT OR TRANSFER — The LESSEE shall not assign or transfer its rights under
this Contract. No right, title or interest to, in and under this Contract or the Leased Premises
shall be deemed conferred or vested in any person other than the LESSEE, to the extent specified
herein, without the LESSOR’s prior written consent.

     The terms and conditions under which the LESSEE may sub-lease the Leased Premises shall be
governed by Annex B.

     10.2 MORTGAGE — The LESSEE shall not mortgage, encumber or create any security
interest in and to the leasehold rights granted thereunder to the LESSEE.

     10.3 NOTICES AND SIGNS — The LESSEE shall not affix, inscribe or paint, or cause the
affixing, inscribing or painting of, any notice, sign or other advertising media on any part of the
Leased Premises or Building, including any sign or media which when illuminated shall be visible
from outside the Leased Premises or which, in the opinion of the LESSOR, is of a lewd, obscene or
otherwise offensive nature. If so allowed by the LESSOR, the sign or media shall be of such size
and style as the LESSOR may determine. Neither shall

 

 

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the LESSEE permit or give consent to any person or entity to affix, inscribe or paint any notice,
sign or other advertising media on the Leased Premises or on any part of the Building, as if said
person or entity uses, holds office or is otherwise established at the Leased Premises or any part
thereof. The LESSOR shall have the right to require the LESSEE to remove any sign which the LESSOR
may consider to be inappropriate. Upon failure of the LESSEE to do so, the LESSOR shall have the
authority, without incurring any liability, to enter the Leased Premises, remove any sign/s it may
consider inappropriate, and charge the costs thereof to the LESSEE.

     10.4 NAME OF THE BUILDING — The LESSEE agrees that the LESSOR’s name or the name of
the Building shall not be used in any confusing, detrimental or misleading manner in connection
with the LESSEE’s own business or tradename, and upon termination of this lease, the LESSEE shall
cease to use the name of the Building or any part thereof in any manner, whether in connection with
the LESSEE’s own business or tradename or otherwise.

     10.5 ALTERATIONS, ADDITIONS OR IMPROVEMENTS — The LESSEE shall not make any
alteration, addition, or improvement within the Leased Premises or in any of the Common Areas or
effect the installation of any fixtures required by the conduct of its business, without the prior
written consent of the LESSOR, which consent shall not be unreasonably withheld, denied or delayed,
and then subject to such terms and conditions as may be imposed by the LESSOR. All authorized
alterations, additions or improvements made by the LESSEE as well as any alteration, improvement,
addition or installation of or to the Leased Premises shall be done in good workmanlike fashion and
at the LESSEE’s cost. All building architectural, engineering, conceptual plans and specifications
for any alteration, addition or improvement shall be submitted to the LESSOR for its approval at
least thirty (30) days prior to the commencement of work on any such alteration, addition or
improvement. The LESSOR reserves the right to require the LESSEE to use the LESSOR’s building
contractor for any renovation of the Leased Premises when in the LESSOR’s opinion, the proposed
renovation may adversely affect any of the warranties or guarantees given by any of the contractors
of the Building. The approval by the LESSOR of such alterations, additions or improvements shall
in no event relieve the LESSEE from the responsibility of obtaining all the necessary permits and
licenses pertaining to such alterations, additions, improvements or installations or from paying
the necessary taxes, insurance premium or fees as shall be necessary or appropriate in connection
therewith. The LESSEE shall give all the notices required and shall comply with all ordinances,
rules and regulations issued by governmental agencies and public utility companies having
jurisdiction over the same. For purposes hereof, the LESSEE shall submit to the LESSOR the cash
bond as required by Article 4.4 prior to the start of any construction or renovation of the Leased
Premises or the Common Areas for the purpose of effecting any alteration, addition, improvement or
installation.

     All such alterations, additions or improvements made by the LESSEE, as well as any alteration,
improvement or installation placed in or on the Leased Premises by the LESSOR, except movable
furniture and fixtures placed in the Leased Premises at the expense of the LESSEE and removable
without defacing or injuring any ceiling, floor, wall or any portion of the Building or the Leased
Premises, shall become the property of the LESSOR at the expiry or termination of this lease, and
shall remain upon and be surrendered with the Leased Premises as part thereof without compensation
for their value to the LESSEE. In the event

 

 

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that the LESSEE fails to comply with the provisions of this Article, the LESSOR shall be entitled
to apply the total cost of damages incurred by the LESSOR by reason of such violation against the
amount of the security deposit specified under Article 4.5 of this Contract. Should the amount of
the security deposit be insufficient to cover such damages, then, the LESSOR shall be entitled to
immediately receive from the LESSEE the amount of any deficiency.

     10.6 DRILLING OR DEFACING — The LESSEE shall not make, permit or suffer any act,
installation, alteration or addition to be made or done in or to the Common Areas, the Leased
Premises or any part of the Building which may cause damage thereof, including without limitation,
any cutting, maiming, marking, defacing or drilling into or of any part of the Building, Leased
Premises or Common Areas.

     10.7 LOAD LIMITATIONS — The LESSEE shall not bring, install, place or suspend any
load, apparatus, equipment, article or thing into, upon or at any floor or ceiling or any part of
the Leased Premises in excess or in violation of the maximum weight and permitted locations of
certain equipment, apparatus, article or thing as determined by the LESSOR for the floor of the
Building where the Leased Premises is located. For this purpose, the LESSEE shall obtain the prior
written approval of the LESSOR, which approval shall not be unreasonably withheld, denied or
delayed, for the entry and/or removal of any load or apparatus, equipment, article or thing, into
and from the Leased Premises. The LESSEE shall also comply with the requirements imposed by the
LESSOR for keeping such equipment, load or apparatus within the Leased Premises, including the use
of supports of such dimension and material to distribute the weight of such equipment, load or
apparatus as the LESSOR may deem necessary. Neither shall the LESSEE install, without the prior
written approval of the LESSOR, any air-conditioning equipment in the Leased Premises other than
that provided by the LESSOR, nor any other plant, equipment, apparatus or machinery which requires
additional wiring, or which consumes electricity not metered through the electric meter from which
the LESSEE’s consumption of electricity is calculated. The LESSEE shall not permit, suffer or cause
any act to be done whereby the maximum allowable voltage capacity of the Leased Premises shall be
exceeded.

     10.8 SHADES, AWNINGS, BLINDS —  The LESSEE shall not hang, fix or erect any shades,
awnings, blinds or window guards of any description, shelters or coverings, wire or aerial wiring,
supports, iron brackets or any other thing on any part of the Building, including the roof or
exterior wall of the Leased Premises, without the prior written consent of the LESSOR. If so
allowed by the LESSOR, any shades, awnings, blinds or window guards shall be at such size and style
as the LESSOR may determine.

     10.9 USE OF LEASED PREMISES OR COMMON AREAS — The LESSEE shall not use, cause or
permit the use of the Leased Premises or Common Areas of the Building in any improper manner for
any purpose other than that for which they are respectively intended. Without limiting the
generality of the foregoing, the LESSEE shall not use or permit the Leased Premises or Common Areas
to be used as domestic premises nor allow the Leased Premises or the Common Areas to be used for
drying laundry, hanging, placing or storing any article or thing thereon. The LESSEE shall not use
or permit the Leased Premises or Common Areas to be used as sleeping quarters or allow any person
to remain in the Leased Premises overnight, except as otherwise provided in Annex B hereof. The
Common Areas shall not be used for loitering or eating. Neither shall the Leased

 

 

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Premises be used as an eatery or as a place where food or beverages of any kind are served, unless
served free or gratuitously to customers or visitors, or unless served in the pantry to be provided
by the LESSEE in the Leased Premises. The LESSEE shall not allow the Leased Premises or Common
Areas to be used by any person for canvassing, peddling, touting or soliciting for business or
distributing any booklet, pamphlet and advertising material or for any illegal or immoral purpose,
or any manner which may provide basis for the imposition of a fine, forfeiture or penalty against
the LESSOR under the applicable law. Neither shall the Leased Premises be used for the manufacture
or storage of goods, articles or things, other than storage of goods for the purpose of and in
quantities consistent with the LESSEE’s business as carried on at the Leased Premises, or keep,
store or permit or suffer to be kept and stored any dangerous goods or other explosive or hazardous
substance. No auction, fire, bankruptcy, close-down or similar sales of a retail business nor any
other unethical type of business operation shall be conducted in the Leased Premises.

     10.10 NO OBSTRUCTION OF COMMON AREAS — The entries, passageways and corridors of the
Building shall not be obstructed either by the LESSOR or the LESSEE or used by the LESSEE for any
purpose other than for ingress to or egress from the Building. No disturbing, noisy or improper
activities shall be allowed to be carried therein or thereon, using loud speakers, television,
phonographs, radios, or other devices which will be in any manner audible or visible outside the
Leased Premises without the prior written consent of the LESSOR, which consent shall not be
unreasonably withheld, delayed or denied. In no instance shall the LESSEE place boxes, cartons,
packages, refuse, dust bins, garbage cans, furniture or chattels in the Common Areas, which should
be kept free and clear of all obstructions at all times. For purposes hereof, the LESSOR shall in
addition to its other remedies as provided thereunder or in law, be entitled without notice and at
the LESSEE’s expense, to remove, store or dispose of any such obstruction as the LESSOR shall see
fit, without incurring any liability to the LESSEE. The LESSEE shall on demand pay or reimburse
the LESSOR for all the expenses incurred in such removal or storage.

     10.11 LOADING AND UNLOADING OF GOODS — The LESSEE shall load and unload cargoes,
goods, articles or things only during such hours and through such entrances, elevator lifts and
routes as shall be determined by the LESSOR from time to time. Neither shall the LESSEE permit or
suffer the elevator lifts to be used for the carriage of cargo, goods, articles or things the
weight of which exceeds the maximum load limits specified therefor by a notice affixed therein or
as determined by the LESSOR.

     10.12 MAINTENANCE OF LEASED PREMISES — The LESSEE shall well and sufficiently
preserve, repair and maintain in good, clean, tenantable condition at its own cost, the interiors
of the Leased Premises, including the flooring, interior plaster or other finishes, doors, windows,
cables, conduits, wirings, sockets, electrical and air-conditioning installations and equipment,
and plumbing fixtures found in or about the Leased Premises. The LESSEE shall ascertain that all
electric equipment are turned off, and all electronic switches and outlets are in the “off”
position when not in use and during non-working days except those machines and switches which
operate their communication facilities such as facsimile machines and computers. All windows,
glass or plate glass of or in the Leased Premises broken or damaged by the LESSEE due to the fault
or negligence of the LESSEE, its guests, employees or agents shall be replaced at the cost of the
LESSEE. The Leased Premises and all additions and installations supplied by the LESSOR shall be
kept in good clean working condition and repair. The LESSEE shall provide itself at its cost and
expense,

 

 

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with receptacles which the appropriate ordinance or regulations require to hold and contain waste
matter, garbage and refuse; shall keep the same in securely sealed containers and shall dispose of
such garbage on a daily basis in the manner prescribed by the LESSOR. It shall keep drains, pipes,
sanitary or plumbing apparatus, used exclusively by the LESSEE, its employees, guests, clients or
customers in good clean and tenantable repair condition and in accordance with the requirements
imposed by regulations of governmental authorities and the LESSOR. The LESSEE shall pay the LESSOR
for all costs in cleaning, repairing or replacing any of the same when found to be blocked or
stopped owing to the careless and improper use or neglect thereof by the LESSEE, its employees,
clients, customers or guests.

     The maintenance of the Leased Premises shall be subject to the additional terms and conditions
specified in Annex B.

     10.13 INCREASE IN INSURABLE RISK — The LESSEE shall not use the Leased Premises, the
Building or any part thereof in any manner which will cause insurance policies of the Leased
Premises or the Building against loss or damage caused by fire, storm, typhoon or other insurable
perils and/or loss or claims by third parties to be rendered void and voidable, or whereby the
premium due thereon may be increased; provided that, if as a result of any act, deed, matter or
thing done or permitted by the LESSEE, the premium on any such insurance policy is increased, the
LESSOR shall be entitled, without prejudice to any other remedy thereunder, to recover from the
LESSEE the amount of such increase and shall be indemnified by the LESSEE against all claims,
losses, damages or claims sustained or made against the LESSOR by any person as a result of a
breach of this Article.

     10.14 NUISANCES — The LESSEE shall not permit or suffer to be permitted any music or
noise to emanate from the Leased Premises or any part thereof which in the reasonable opinion of
the LESSOR may constitute a nuisance or annoyance or give cause for reasonable complaint from the
LESSOR or other lessees. Neither shall it permit any odor or noxious smell which is in the sole
opinion of the LESSOR offensive or unusual, to emanate from the Leased Premises, nor keep or suffer
to be kept any animals or pets inside the Leased Premises.

     10.15 PROTECTION AGAINST PESTS — The LESSEE shall take all such steps and precautions
at its own cost to prevent the Leased Premises from becoming infested with termites, rats, mice,
cockroaches or other pests or vermin. For this purpose, the LESSEE agrees to utilize the services
of the pest control agency recommended by the LESSOR to provide pest control services for the
Leased Premises. The LESSOR shall advise the LESSEE of the day and time during which such service
shall be rendered and the LESSEE shall reimburse the LESSOR for the LESSEE’s share in the costs of
utilizing such services for the Leased Premises.

     10.16 COMPLIANCE WITH RULES — The LESSEE shall strictly obey and comply with the
Construction Guidelines, House Rules, and with such rules and regulations as may from time to time
be imposed, adopted, introduced or amended by the LESSOR, the Association, the person or firm
appointed by the LESSOR to manage and operate the Building or the appropriate government agency.

     10.17 PERMIT TO ENTER — The LESSEE shall permit the LESSOR, public utility companies
and their authorized representatives at reasonable times to enter the Leased

 

 

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Premises for the purpose of undertaking the repair and maintenance of utilities, facilities and
other structural elements used or shared in common by the LESSEE with the other lessees of the
Building, inspecting the condition of the Leased Premises or for determining the LESSEE’s
compliance with this Contract. The LESSOR shall be entitled without incurring any liability
whatsoever, in the event of an emergency to enter the Leased Premises as the LESSEE’s
attorney-in-fact, to undertake the necessary repairs or conduct the inspection thereof for the
protection of the Leased Premises and the Building.

     10.18 INSPECTION PRIOR TO EXPIRY OF LEASE — During the last nine (9) calendar months
immediately preceding the expiration of the term of this lease, the LESSEE shall allow, during
business hours and upon prior written notice, the LESSOR’s authorized representatives and
prospective tenants to inspect the Leased Premises. During such period, the LESSOR may exhibit,
where it shall think fit, a notice offering the Leased Premises for lease, which the LESSEE shall
not conceal in any way.

     10.19 CONDITION OF LEASED PREMISES — The LESSEE agrees to return and surrender the
Leased Premises at the expiration of the term of this lease in the same condition as it was found
at the commencement of this lease (reasonable wear and tear excepted), without any delay
whatsoever, devoid of all occupants, furniture, articles and effects of any kind, other than the
alterations, additions or improvements which pertain to the LESSOR in accordance with Article 10.5.
The LESSEE shall repair any damage caused to the Leased Premises which cannot be accounted for by
reasonable wear and tear and restore the Leased Premises to the condition it was found at the
commencement of this lease to the satisfaction of the LESSOR. All keys giving access to all parts
of the Leased Premises and/or the Common Areas (as applicable) shall be returned to the LESSOR, and
all expenses incurred in removing from the Leased Premises or Building, the names, posters,
signboards, decoration, or advertising matters relating to the LESSEE, including any damage caused
by such removal, shall be for the account of the LESSEE.

     The LESSEE undertakes that it shall remove, as it shall so remove or cause the removal of any
vehicle found in the Leased Premises at the expiration of the term of this lease. If the LESSEE’s
or representatives’ vehicle or vehicles is or are found therein, then the LESSOR shall have the
right to cause the removal of the same and charge the cost thereof to the LESSEE. The LESSOR shall
not be liable in any circumstance for any damage to or loss of the vehicles, its/their accessories,
parts or articles therein upon the termination of this lease. In addition, the LESSOR shall not be
liable for any loss or injury suffered by third persons as a result of or in connection with such
unauthorized occupancy or use of the Leased Premises.

     10.20 DAMAGES FOR HOLD-OVER — If the LESSEE fails to return the Leased Premises to the
LESSOR at the expiration of the term of this lease, or upon the termination of this Contract for
whatever reason prior to the expiration of the term of this lease, the LESSEE shall pay the LESSOR,
as damages, a monthly sum equal to thrice the rental accruing on the Leased Premises immediately
prior to the expiration date or the termination date, as the case may be, to be paid by the LESSEE
to the LESSOR for the period during which the LESSEE shall retain possession of the Leased
Premises. The exercise by the LESSOR of its rights under this Article shall not be interpreted as
a grant of permission to the LESSEE to continue in possession of the Leased Premises beyond the
term of this lease, and the damages due to

 

 

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the LESSOR hereunder shall be in addition to the damages which may become due to the LESSOR under
Article 10.21.

     10.21 LIABILITY FOR NON-DELIVERY — If the Leased Premises are not surrendered at the
expiration of the term of this lease, the LESSEE shall be responsible to the LESSOR for all damages
which the latter may suffer by reason thereof and will indemnify the LESSOR against any and all
claims made by any succeeding lessee, resulting from the delay in delivering possession of the
Leased Premises to such succeeding lessee, to the extent that such delay is occasioned by the
failure of the LESSEE to surrender the premises on time. The LESSOR shall also be entitled to
exercise the remedies specified in Article 14 hereof.

ARTICLE 11 — REPRESENTATIONS AND WARRANTIES

     11.1 LESSOR’S WARRANTIES — The LESSOR represents, warrants and covenants in favor of
the LESSEE that:

     (a) it is the absolute and legal owner of the Building and the Leased Premises, and has full
right, title and interest to grant the lease of the Leased Premises to the LESSEE;

     (b) the land on which the Building stands has been zoned for commercial use and the use of the
land and the Building for commercial purposes is expressly allowed under the applicable zoning
regulations;

     (c) the Building has been registered with the Philippine Economic Zone Authority (PEZA) as an
“information technology (IT) building”;

     (d) the LESSOR shall provide the LESSEE a certificate issued by the designated contractor
verifying that the Building is constructed in accordance with the designs and specifications agreed
upon by the LESSOR and the LESSEE;

     (e) the LESSOR shall provide reasonable access to the Building during the effectivity of the
Contract of Lease or any extension thereof;

     (f) the Building shall be maintained regularly to ensure that it is consistently fit for use
as an office building;

     (g) all real property taxes, assessments or levies due or accruing in connection with the
Building and the land upon which it stands shall be paid for by the LESSOR as and when the same
shall fall due; and

     (h) unless otherwise prevented by Force Majeure, it shall maintain the LESSEE in peaceful
possession of the Leased Premises for the entire term of this Contract and in the peaceful use and
enjoyment of the Leased Premises as an office free from undue interference by other lessees of the
Building.

 

 

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     11.2 MUTUAL WARRANTIES — The LESSOR and the LESSEE represent and warrant in favor of
each other that:

     (a) each has full power, authority and legal right to execute, deliver and perform this
Contract and has taken all the necessary corporate action to authorize the foregoing;

     (b) this Contract constitutes the legal, valid and binding obligation of the LESSOR and the
LESSEE, enforceable in accordance with its terms; and

     (c) the execution, delivery and performance of this Contract do not and will not violate any
provision of, or result in a breach of or constitute a default under any law, regulation or
judgment, or violate any agreement binding upon either of them or any of their property.

ARTICLE 12 — INDEMNITIES

     12.1 LIMITATIONS ON LIABILITY OF LESSOR — Save by its willful breach of any of its
obligations (including without limitation its representations, warranties and covenants), gross
negligence or willful misconduct, the LESSOR shall not be liable or responsible in any circumstance
for any damage or disturbance suffered (whether directly or indirectly) by the LESSEE (whether
personally or in respect of the Leased Premises or any contents therein) or by any of its
employees, clients, customers or any other persons whomsoever. Without limiting the generality of
the foregoing, the LESSOR shall not be liable:

     (a) in respect of any loss, damage or injury sustained by the LESSEE or any such other person
or any of their properties, caused by or through any accident, event or in any way owing to:

	 	(i)  	any failure, poor quality, inadequacy, fluctuation, interruption,
malfunction, explosion or suspension of the electricity, water, telephone,
facsimile, emergency power or other public utility services supplied to or intended
for the Leased Premises or the Building;
	 
	 	(ii)  	any seepage, overflow or leakage of water from any pipe, drain or
automatic sprinkler system or any part within the Building or the influx of rain
water into the Leased Premises or the Building;
	 
	 	(iii)  	any activity of rats, pests or vermin in the Building;
	 
	 	(iv)  	any failure or breakage of glass of or in the Leased Premises or the
Building;
	 
	 	(v)  	any defect, mechanical breakdown, failure or need for repair, overhaul
or any negligent or improper working or operation by any person whomsoever, of the
facilities provided for the common use of the lessees of the Building or for the
LESSEE in respect of the Leased Premises;

 

 

22

	 	(vi)  	Force Majeure;
	 
	 	(vii)  	any escape of fumes, smoke, fire or other substances from anywhere
within the Building;
	 
	 	(viii)  	any escape of electric current from electric wiring or cable situated upon or in
any way connected with the Building or any part thereof, or any vibration from or
of any part of the Building or adjoining or neighboring premises;
	 
	 	(ix)  	any act, neglect or default of the LESSEE or other lessees of the
Building or of adjoining neighboring premises, or any of its or their respective
employees, clients, guests or customers;
	 
	 	(x)  	any defective or damaged condition of the Leased Premises or Building;
or
	 
	 	(xi)  	any violation of the provisions hereof or the rules and regulations
adopted by the LESSOR, Association, person or firm appointed by the LESSOR to
manage or operate the Building, or by any appropriate government agency in
connection of the possession and maintenance of the Leased Premises by the LESSEE
and the conduct of business operations therein;

     (b) for the security or safekeeping of the Leased Premises or any person or property found
therein, including without limitation all furniture, fixtures, fittings, goods, chattels, samples,
personal effects, contents or any article delivered to or left in the Leased Premises.

     Notwithstanding the foregoing, the LESSOR shall be liable for damage or injury that is
attributable to the fault or negligence of the LESSOR or its employees or agents; provided that the
LESSOR shall not be liable for any act, event or cause which would constitute Force Majeure as
defined herein.

     12.2 INDEMNIFICATION — The LESSEE shall indemnify and keep the LESSOR fully
indemnified against all claims, actions, demands, actions and proceedings whatsoever made against
the LESSOR by any person whomsoever arising as a result of or in connection with any loss, damage
or injury which the LESSOR shall not be responsible for under Article 12.1 and against all costs
and expenses incurred by the LESSOR in respect of such claims, actions or demands; provided, that
such claims, actions, demands and proceedings are attributable to or arise out of or in connection
with the fault or negligence of the LESSEE, its employees, agents, representatives, clients or
guests. The LESSEE shall also be responsible for any loss or damage which may be done to the
Leased Premises or any part thereof or to Common Areas or to any part of the Building, due to the
fault or negligence of the LESSEE, its employees, agents, customers, clients or guests; provided,
that the LESSEE shall not be liable for any act, event or cause which would constitute Force
Majeure as defined herein.

     12.3 NON-ABATEMENT OF OBLIGATIONS — In no event shall the payment of any amount due
thereunder whether as rent, security deposit, advance rental, Common Area charges, Air-conditioning
charges, Water charges, utility charges, or association dues

 

 

23

abate or cease to be payable on account of the occurrence of any of the causes specified in Article
12.1, except to the extent permitted by Article 13.

ARTICLE 13 — FORCE MAJEURE

     13.1 OCCURRENCE OF FORCE MAJEURE — The LESSEE shall give the LESSOR written notice of
any damage caused to the Leased Premises by reason of Force Majeure, within five (5) business days
from the occurrence thereof. If the Leased Premises are rendered inaccessible or destroyed or
substantially damaged by Force Majeure, without any fault or omission of the LESSEE, its employees,
guests, customers or clients, the damage shall be repaired at the expense of the LESSOR, and the
disturbance or discontinuance in the possession of the Leased Premises by reason of or occasioned
during such repair shall confer no right of any kind to the LESSEE against the LESSOR, except to
the extent recognized under Article 13.2.

     13.2 OPTION TO RESCIND — In the event that (i) the damage resulting from the Force
Majeure renders the Leased Premises totally unfit for use or occupation for more than sixty (60)
days, or (ii) the repairs required to render the Leased Premises fit for use and occupation are
expected to last for more than ninety (90) days, or (iii) Force Majeure prevents any party from
conducting its business or interferes with the operations of the Building for a period of more than
sixty (60) days, then either party shall have the right to rescind this Contract by written notice
sent to the other party without need of any judicial action within five (5) business days after the
lapse of the applicable period. Failure to exercise the right to rescind within the said period
shall constitute a waiver thereof. The rescission of this Contract shall be without prejudice to
the rights and remedies of either party against the other in respect of any claim or liability
antecedent to such rescission. The obligation to pay rent and other charges or amounts due
thereunder shall continue to be in full force until the date such rescission is effected.

     In the event, however, that (i) the damage resulting from the Force Majeure renders the Leased
Premises unfit for use or occupation for sixty (60) days or less, or (ii) the repairs required to
render the Leased Premises fit for use or occupation are expected to last for ninety (90) days or
less, or (iii) either party fails to exercise the option to rescind this Contract within the 5-day
period specified therefor, or (iv) Force Majeure prevents any party from conducting its business or
interferes with the operations of the Building for a period of sixty (60) days or less, then the
rent due to the LESSOR (which shall be computed in accordance with Article 4.1) shall be reduced in
proportion to the period the LESSEE has not been able to use the Leased Premises. Notwithstanding
such proportionate reduction, all other obligations of the LESSEE as provided thereunder shall
remain in full force and effect. In no case shall any compensation or claim be allowed against the
LESSOR by reason of the interruption, annoyance or injury caused to the LESSEE or its property
arising from the rescission of this Contract or any interruption in the use or possession of the
Leased Premises or the repair of any portion of the Building or the Leased Premises.

     13.3 STRIKES, LOCKOUTS AND OTHER THREATS — In the event that (i) a picket line is
established in the Leased Premises or in the vicinity thereof due to a labor dispute involving the
LESSEE or arising in any way from the conduct of the LESSEE’s business, which picket line
substantially affects the business operations of the LESSEE or any

 

 

24

other lessee in the Building, or (ii) an activity is performed therein which, in the sole judgment
of the LESSOR, interferes with or affects the operations of the LESSOR, or (iii) any event,
accident or cause beyond the control of the LESSOR threatens the LESSOR’s operations, the operation
of its lessees and the lives of the LESSEE’s employees, guests, customers or clients and the
security of the Building itself, then the LESSOR may, at its sole option, terminate this Contract
by written notice to the LESSEE. If the LESSOR shall not elect to terminate this Contract, it may,
in its sole discretion and by written notice, require the LESSEE to pay for any additional cost the
LESSOR may incur in hiring additional security guards, maintaining the cleanliness of the Leased
Premises or in contracting for such other services, including legal services and other costs of
suit, as may be required for the well-being, security and welfare of the other lessees in the
Building. In the event that the LESSEE is prevented from conducting its business in the Leased
Premises due to a strike, lockout, labor dispute or any other analogous activity involving other
lessees, or due to an accident or cause beyond the control of the LESSOR (that is hazardous to the
security of the Building such as but not limited to bomb threats), the LESSEE hereby
unconditionally relieves and releases the LESSOR from any and all liabilities in connection with or
arising out of such occurrence(s). This Article shall be without prejudice to the rights of either
party to terminate this Contract pursuant to Article 13.2.

ARTICLE 14 — TERMINATION AND ITS CONSEQUENCES

     14.1 EVENTS GIVING RISE TO DEFAULT AND TERMINATION -The LESSOR shall have the right to
cancel or terminate this Contract upon the occurrence of any of the following events:

     (a) the term (or renewal) of this lease shall have expired pursuant to Article 2, or the
LESSEE shall have failed to return and surrender the Leased Premises in accordance with Article
10.19;

     (b) the Leased Premises shall be closed, deserted or totally unoccupied for a continuous
period of thirty (30) days; provided, that in the event that the Leased Premises shall be closed,
deserted or totally unoccupied for such period, the LESSEE will advise the LESSOR of such event
within a reasonable time from such occurrence;

     (c) the LESSEE shall fail to pay for at least two (2) months its share of electric, emergency
power, water, sewerage or other public utility, Common Area, Air-conditioning and Water charges
accruing in connection with or allocated to the Leased Premises, or shall fail to pay the rent or
any other amount due thereunder on or before the date specified herein for its payment;

     (d) the LESSEE fails to observe or perform any of the covenants provided hereunder and in
Annex B hereof; or any of the LESSEE’s representations and warranties as specified thereunder shall
prove false in any material respect when made;

     (e) the LESSEE (if the latter is a natural person) shall have died or the corporate existence
of the LESSEE (when organized as corporation or partnership) shall have ceased;

 

 

25

     (f) the principal stockholder(s) or partner(s) of the LESSEE (when organized as a corporation
or partnership) on the date hereof shall have changed or shall have ceased to own or control a
majority of shares or interest in the LESSEE, whether through voluntary disposition, merger,
consolidation, restructuring, bankruptcy, liquidation or otherwise, and the new principal
stockholder(s) or partner(s) controlling the LESSEE shall not be acceptable to the LESSOR, or the
LESSOR shall be unwilling to continue the lease with the LESSEE, as owned or controlled by such new
stockholder(s) or partner(s), for any reason;

     (g) the LESSEE shall become insolvent or be unable to pay its debts when due or shall commit
or permit any act of bankruptcy under the applicable law; or

     (h) the occurrence of any other event which entitles the LESSOR to exercise its right to
cancel or terminate this lease pursuant to other provisions in this Contract and its Annexes;

     (i) negative findings in the credit investigation of the LESSEE.

     The LESSEE shall have the right to cancel or terminate this Contract in the event that the
LESSOR fails to observe or perform any of the covenants provided hereunder and in Annex B hereof;
or any of the LESSOR’s representations and warranties as specified thereunder shall prove false in
any material respect when made, without incurring any penalties therefor.

     14.2 CONSEQUENCES OF DEFAULT — Upon the occurrence of any of the foregoing events, the
LESSOR shall be entitled to exercise any of the following remedies, alternatively or cumulatively
at its discretion, in conjunction with or separately from any other right or remedy granted
thereunder or under the law:

     (a) The LESSOR is hereby constituted and appointed as the LESSEE’s attorney-in-fact with the
following powers and rights upon the occurrence of any of the events specified in Article 14.1: to
(i) open, enter, padlock, secure, enclose or fence the Leased Premises, and/or discontinue the
supply of public utilities and services to the Leased Premises, or otherwise take full and complete
physical possession and control of the Leased Premises; (ii) assume ownership and take full control
and possession of all alterations, additions, improvements or installations placed in or on the
Leased Premises which cannot be removed without defacing or injuring any ceiling, floor, wall or
any portion of the Building or the Leased Premises, (iii) take an inventory of the equipment,
furniture, articles or merchandise found or located in the Leased Premises which may be removed
therefrom without defacing or injuring any ceiling, floor, wall or any portion of the Building or
Leased Premises, place any of the same in storage and charge the LESSEE the corresponding storage
fees therefor; (iv) in case the LESSEE fails to claim said equipment, furniture, articles or
merchandise from storage and liquidate any liability to the LESSOR within thirty (30) days from the
date the LESSOR takes possession of the Leased Premises or of the LESSEE’s personal properties, to
dispose of said properties in a public sale and to apply the proceeds thereof to the payment of
whatever liability and/or indebtedness the LESSEE may have to the LESSOR, including reasonable
expenses incurred by the LESSOR in connection with such sale, without prejudice to the right of the
LESSOR to collect the deficiency, if any. The appointment of the LESSOR as attorney-in-fact of the
LESSEE shall be considered coupled

 

 

26

with an interest, and hence shall be irrevocable. The LESSOR is also authorized to prevent the
removal of any of the LESSEE’s personal properties from the Leased Premises.

     In case of the occurrence of the events specified in Article 14.1(a), (b), (c) and (d), the
LESSOR shall, before it exercises its rights under the immediately preceding paragraph, notify the
LESSEE in writing of the occurrence of an event giving rise to default and termination and
requiring the LESSEE to rectify and remedy the situation within ten (10) days from receipt of the
notice. If the LESSEE shall fail to remedy or rectify the situation to the LESSOR’s satisfaction
within ten (10) days from receipt of said written notice, the LESSOR shall be entitled to exercise
its rights as provided in the immediately preceding paragraph.

     In case of the occurrence of the events specified in Article 14(e) through (i) inclusive, the
LESSOR shall be entitled to exercise its rights hereunder immediately upon the occurrence of the
event giving rise to default.

     (b) The LESSOR shall be entitled to collect from the LESSEE, and the LESSEE shall continue to
be liable for, the rental of the unexpired period of the lease term and the penalty and interest
charges due thereon (as applicable). The entire security deposit constituted under Article 4.5
shall be forfeited in favor of the LESSOR, and the LESSEE shall continue to be liable for all
amounts which shall be due from it as provided thereunder. All these amounts shall be due and
payable to the LESSOR within thirty (30) days from the receipt of a statement of account, in
addition to whatever damages, whether actual or consequential, which may be due under Articles
10.20 or 10.21 hereof as well as the damages the LESSOR may incur or suffer arising from the
termination of this Contract. Should the LESSEE fail to pay the LESSOR within thirty (30) days,
the amount due will be subject to a * * * . In no case, shall any amount due thereunder
from the LESSEE be applied against the security deposit, it being understood that the entire amount
thereof shall accrue by virtue of forfeiture in favor of the LESSOR.

     (c) Should either party be compelled to seek judicial relief against the other or any of its
employees, agents or representatives, the latter shall, in addition to the damages mentioned above,
pay an amount equivalent to * * * of the amount to which the non-defaulting party is
proven to be entitled, as attorney’s fees (with a minimum of PHP * * * ), aside from the costs
of the litigation and other expenses which the law may entitle the non-defaulting party to recover
from the defaulting party.

ARTICLE 15 — GENERAL PROVISIONS

     15.1 CURRENCY INFLATION OR DEFLATION – Should extraordinary inflation or deflation of
the currency of payment as stipulated thereunder supervene during the effectivity of this Contract,
the value of the currency on date hereof shall be the basis of payment as provided in Article 1250
of the Civil Code of the Philippines.

     15.2 EXPROPRIATION — In the event that the Leased Premises or any part of the Building
is expropriated during the period of this lease by any instrumentality of the Government or by any
other entity with authority to exercise such power, either party may rescind this Contract upon
giving the other party thirty (30) days’ prior written notice thereof, without incurring any
liability or providing the other party with any basis for an action for

*Confidential material redacted and filed separately with the Commission.

 

 

27

damages. In case of such expropriation, the LESSEE hereby unconditionally relieves and releases
the LESSOR from any and all liability under this Contract in connection with or arising out of such
expropriation proceedings and agrees that the compensation to be received by the LESSOR shall
belong to it wholly as owner of the Leased Premises, without prejudice to whatever recourse the
LESSEE may have against the expropriating entity on account of damage done or caused to it or its
properties by reason of such expropriation. In such event, the LESSOR shall return the unused
portion of the advanced rental and the security deposit less whatever amounts the LESSEE may owe
the LESSOR or which the LESSOR may apply against the security deposit, without interest.

     15.3 NON-WAIVER — The failure of any party to insist upon a strict performance of any
of the terms, conditions and covenants hereof shall not be deemed a relinquishment or waiver of
such terms, conditions or covenants, granted to such party, nor shall it be construed as a
condonation of any subsequent breach or default of the terms, conditions and covenants hereof,
which terms, conditions and covenants shall continue to be in full force and effect. The
subsequent acceptance of rent by the LESSOR shall not be deemed to be a waiver of any prior breach
by the LESSEE of any term, covenant or condition for this lease, regardless of LESSOR’s knowledge
of such prior breach at the time of acceptance of such rent. No waiver by the LESSOR of any of its
rights under this Contract shall be deemed to have been made unless expressed in writing and signed
by the LESSOR.

     15.4 NOTICE — Where demand or notice is required to be given under this Contract,
notice sent to the LESSEE at the Leased Premises or at the address specified above by registered
mail or by personal delivery, shall be considered sufficient compliance with the requirement of
notice or demand.

     15.5 LAW AND VENUE APPLICABLE — This Contract shall be construed, interpreted and
governed by the laws of the Philippines. Each party irrevocably submits to the jurisdiction of the
courts in Makati for the purpose of enforcing any right or obligation under or arising out of this
Contract.

     15.6 ENTIRE AGREEMENT — This Contract constitutes the complete understanding between
the parties with respect to the subject matter hereof and supersedes any prior expression of
intent, representation or warranty with respect to this transaction. This Contract may be amended
but only with an instrument in writing signed by the parties.

     15.7 ADDITIONAL TERMS AND CONDITIONS — This lease shall be subject to the additional
terms and conditions specified in Annex B. All the Annexes of this Contract constitute integral
parts hereof. In case of conflict between this Contract and Annex B, the provisions of Annex B
shall prevail.

     15.8 BINDING EFFECT — All the terms, covenants, conditions and provisions of this
Contract shall be binding and enforceable upon the parties and their heirs, executors,
administrators, principals, successors-in-interest and assigns.

     15.9 SEVERABILITY — If any one or more of the provisions of this Contract is declared
invalid or unenforceable in any respect under any applicable law, the validity, legality or
enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired.

 

28

     15.10 CONFIDENTIALITY – (a) The Parties acknowledge that this Contract of Lease, and
all other information which have been marked “Confidential”, that they may from time to time supply
or obtain from each other in connection with the foregoing documents and this transaction
(including but not limited to the terms and conditions of the foregoing documents, such plans,
drawings or specifications for or of the Leased Premises or the Building or as may be submitted by
the LESSEE to the LESSOR for review and approval) are confidential (“Confidential Information”).
Accordingly, no party (the “Receiving Party”), without the prior written consent of the other party
(the “Disclosing Party”), shall disclose or communicate to any third party (other than to its
respective officers, counsel or financial advisors) any such information, except for the
information that is: (i) publicly available without any breach on the part of the disclosing party;
(ii) required to be disclosed, by one of the parties herein or its parent company, by any court or
governmental, administrative or regulatory authority competent to require such disclosure either
from one of the parties herein or any of its parent company; or (iii) required to be disclosed by
one of the parties herein or its parent company by any applicable law or regulation including
securities regulations of the United States of America. Furthermore, any notice to third parties,
except those required by the appropriate regulatory authorities, concerning the transaction
contemplated by this Contract shall be jointly planned and coordinated between the parties hereto
and no party shall act unilaterally in this regard without the prior written approval of the other
party.

     (b) The Receiving Party understands and acknowledges that any actual or threatened disclosure
or misappropriation of any of the Confidential Information in violation of this Contract may cause
the Disclosing Party irreparable harm, and that money damages alone, the amount of which would be
difficult to ascertain, would be an inadequate remedy and, therefore, agrees that the Disclosing
Party shall have the right to apply to a court of competent jurisdiction for an order preventing or
restraining any such actual or threatened disclosure or misappropriation and for such other relief
in addition to such other remedy as may be available in law or in equity.

     IN WITNESS WHEREOF, the LESSEE [or its authorized representative(s)] and the authorized
representatives of the LESSOR have caused these presents to be signed on 14 January 2005 at the
City of Makati.

AYALA LAND, INC.

(LESSOR)

By:

	 	 	 
	/s/ MA. Victoria E. Anonuevo
	 	/s/ MA. Carmela K. Ignacio
	MA. VICTORIA E. ANONUEVO
	 	MA. CARMELA K. IGNACIO
	Attorney-in-Fact
	 	Attorney-in-Fact

- and -

 

29

PEOPLESUPPORT (PHILIPPINES), INC.

(LESSEE)

By:

/s/ Rainerio M. Borja

RAINERIO M. BORJA

President

SIGNED IN THE PRESENCE OF:

	 	 	 
	[signature illegible]
	 	[signature illegible]
	 
	 	 

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF MAKATI                          )S.S.

     At the City of Makati, Philippines, this 14th day of January 2005 personally
appeared before me:

	 	 	 	 	 	 	 
	 	 	COMMUNITY	 	 
	NAME	 	TAX CERT. NO.	 	DATE & PLACE ISSUED
	AYALA LAND, INC.

	 	00039157	 	 	01-03-04; Makati City
	 
	 	 	 	 	 	 
	JAIME I. AYALA

	 	12656216	 	 	01-09-04; Makati City
	 
	 	 	 	 	 	 
	MA. VICTORIA E. ANONUEVO

	 	15267029	 	 	03-10-04; Makati City
	 
	 	 	 	 	 	 
	PEOPLESUPPORT (PHILS.), INC.

	 	00018403	 	 	02-06-04; Makati City
	 
	 	 	 	 	 	 
	RAINERIO M. BORJA

	 	02502573	 	 	05-19-04; Makati City

known to me and to me known to be the same persons who executed the foregoing instrument, and they
acknowledged to me that the same is their free and voluntary act and deed, and the free and
voluntary act and deed of the corporations they respectively represent.

 

30

     This Contract of Lease consists of 30 pages including this page where the acknowledgment is
written, to which Annexes A, B, C, and D have been attached. Each page of this Contract has been
signed by the parties and their instrumental witness on all the pages hereof in their left hand
margins and every page of which is sealed with my notarial seal.

     WITNESS MY HAND AND SEAL on the date and at the place hereinabove mentioned.

	 	 	 
	Doc. No. 79

	 	[Notary Seal]
	Page No. 17
	 	 
	Book No. XX11
	 	 
	Series of 2005.
	 	 

ALI LEGAL/CBG/CBG-Peoplesupport-lease contract-13jan05-final

 

 

ANNEX B

Additional Terms and Conditions for

PEOPLESUPPORT (PHILIPPINES.), INC.

1. Additional Defined Terms:

     In addition to the terms defined in Article 1 of the Contract of Lease, or as a supplement to
the definitions of the terms already specified therein, the terms specified below shall have the
meanings respectively set forth opposite them when used in the Contract of Lease and this Annex:

	 	(a)  	“Association” shall refer to the Makati Commercial Estate Association, Inc. (MACEA).
	 
	 	(b)  	“Building” shall refer to the PEOPLESUPPORT CENTER, located along Amorsolo Street, City
of Makati.
	 
	 	(c)  	“Leased Premises” shall mean (a) the total floor space leased to the LESSEE, measuring
approximately 15,042.50 square meters of leaseable area located at the ground, third,
fourth and fifth floors of the Building (the “Office Unit”), (b) an aggregate of One
Hundred Forty Seven (146) parking slots with no/s. 2F-001 to 2F-146 located at the second
floor of the Building (the “Parking Slots”), and (c) the total floor space of the ground
floor lobby (approximately 254.92 square meters) and the storage space at the second floor
of the Building (with an area of approximately 168.91 square meters); provided that the
ground floor lobby and the storage space at the second floor of the Building shall
constitute part of the Leased Premises only while and for so long as the LESSEE shall
continue to lease the Office Unit at the ground floor.
	 
	 	(d)  	“Rental Commencement Date” shall refer to the date specified in Section 4 hereof. In
the event that the LESSOR is unable to transfer physical possession of the Leased Premises
on the date specified in Section 3 hereof for any of the reasons specified in Article 2.2
of the Contract of Lease, the Rental Commencement Date shall refer to the date as modified
by mutual agreement of the LESSOR and the LESSEE.

     2. Term Of The Lease:

     This lease shall be for a term of ten (10) years, commencing on August 1, 2005 up to and until
July 31, 2015 (the “Lease Term”), with an option to renew, subject to the fulfillment of the
conditions specified in Article 2.1 of the Contract of Lease and the conditions provided hereunder.

     The following additional terms and conditions shall govern the renewal or extension of this
lease:

 

2

     At the beginning of the ninth year of the Lease Term, the LESSOR shall inform the LESSEE in
writing of whether or not it shall grant the LESSEE the option to extend the Lease Term for another
period of five (5) years; provided, that the LESSEE shall have faithfully complied with all the
terms of the Contract of Lease. In turn, if the LESSEE is granted the option to extend the Lease
Term, the LESSEE shall inform the LESSOR in writing not less than six (6) months before the end of
the initial Lease Term whether or not the LESSEE shall exercise its option to extend the Lease Term
by another period of five (5) years; provided that, any extension of the Lease Term shall be under
the same terms and conditions as the Contract of Lease.

     In the event that the LESSOR and the LESSEE agree to extend the Lease Term for another period
of five (5) years, the LESSOR and the LESSEE shall conduct a rent review to determine the monthly
rent due for the first year of the renewed term; provided that the rent due for the first year of
the renewed term shall be based on the average prevailing market lease rate of comparable ALI-owned
buildings in Makati (e.g. Makati Stock Exchange Building); provided further that any increase or
decrease in the rent due for the first year of the renewed term shall not exceed * * * of the rent
in the last year of the Lease Term; provided further that the rental rate for the next four years
of the renewed term shall be increased at the following rates per annum over the then-prevailing
monthly rental rate:

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Period Covered	 	 	Rate Increase	 
	 	 	 	 	From	 	 	To	 	 	 	 
	 	Year 12

	 	 	Eleventh
anniversary of the
Rental Commencement
Date (August 1,
2016)
	 	 	Day prior to the
twelfth anniversary
of the Rental
Commencement Date
(July 31, 2017)
	 	 	* * *	 
	 	Year 13

	 	 	Twelfth anniversary
of the Rental
Commencement Date
(August 1, 2017)
	 	 	Day prior to the
thirteenth
anniversary of the
Rental Commencement
Date (July 31,
2018)
	 	 	* * *	 
	 	Year 14

	 	 	Thirteenth
anniversary of the
Rental Commencement
Date (August 1,
2018)
	 	 	Day prior to the
fourteenth
anniversary of the
Rental Commencement
Date (July 31,
2019)
	 	 	* * *	 
	 	Year 15

	 	 	Fourteenth
anniversary of the
Rental Commencement
Date (August 1,
2019)
	 	 	Expiration of the
Lease Term (July
31, 2020)
	 	 	* * *	 
	 

     However, in the event that the monthly rent due for the last year of the Lease Term based
on the escalation rates herein specified is higher by more than * * * than the prevailing
market monthly lease rate of comparable ALI-owned buildings in Makati (e.g. Makati Stock Exchange),
as determined by a third-party property consultant acceptable to both the LESSOR and the LESSEE,
then the monthly rental rates for the extended Lease Term shall be adjusted as follows:

*Confidential material redacted and filed separately with the Commission.

 

3

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Period Covered	 	 	Rate Adjustment	 
	 	 	 	 	From	 	 	To	 	 	 	 
	 	Year 11

	 	 	Tenth anniversary
of the Rental
Commencement Date
(August 1, 2015)
	 	 	Day prior to the
eleventh
anniversary of the
Lease Commencement
Date (July 31,
2016)
	 	 	Decrease by * * *	 
	 	Year 12

	 	 	Eleventh
anniversary of the
Rental Commencement
Date (August 1,
2016)
	 	 	Day prior to the
twelfth anniversary
of the Rental
Commencement Date
(July 31, 2017)
	 	 	Decrease by * * *	 
	 	Year 13

	 	 	Twelfth anniversary
of the Rental
Commencement Date
(August 1, 2017)
	 	 	Day prior to the
thirteenth
anniversary of the
Rental Commencement
Date (July 31,
2018)
	 	 	Increase by * * *	 
	 	Year 14

	 	 	Thirteenth
anniversary of the
Rental Commencement
Date (August 1,
2018)
	 	 	Day prior to the
fourteenth
anniversary of the
Rental Commencement
Date (July 31,
2019)
	 	 	Increase by * * *	 
	 	Year 15

	 	 	Fourteenth
anniversary of the
Rental Commencement
Date (August 1,
2019)
	 	 	Expiration of the
Lease Term (July
31, 2020)
	 	 	Increase by * * *	 
	 

     In the event that the LESSOR and the LESSEE agree to extend the Lease Term for another
period of five (5) years, the LESSOR and the LESSEE shall endeavor to execute a contract of lease
for the renewed term at least five (5) months prior to the termination of the Contract. Should the
LESSOR and the LESSEE be unable to execute the renewal of the lease prior to the termination of the
contract, then the lease shall expire on the last day of such period, and the LESSOR shall be
entitled to exercise the rights granted under this Contract by reason of such expiry.

3. Date Of Delivery Of Leased Premises:

     In connection with Article 2.2 of the Contract of Lease, the LESSOR shall deliver to the
LESSEE physical possession of the Leased Premises on or before April 15, 2005.

     The following additional terms and conditions shall govern the delivery of the Leased
Premises:

     In the event that the LESSEE is unable to accept the Leased Premises upon the effectivity
date of the lease term for any reason whatsoever, other than that the Leased Premises does not
comply with the building specifications mutually agreed upon by the Parties, despite the LESSOR’s
ability to deliver the Leased Premises to the LESSEE, the

*Confidential material redacted and filed separately with the Commission.

 

4

effectivity of the lease term and rental commencement date as specified in Annex B shall remain
unchanged.

4. Commencement Of Rental Payment:

     The obligation of the LESSEE to pay rent shall commence on the Rental Commencement Date of
August 1, 2005 for the Office Unit measuring 15,042.50 leaseable square meters and the Leased
Parking Slots.

5. Rent:

     a) Office Unit

     From the Rental Commencement Date up to July 31, 2006, the LESSEE shall be liable to pay the
LESSOR on a monthly basis, within the first five (5) working days of the calendar month to which
the rent corresponds, a monthly rent equivalent to the following rates per square meter of
leaseable area:

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Monthly Rent Per	 
	 	Location	 	 	Area	 	 	Leasable Square Meter	 
	 	Ground Floor	 	 	1,157.00 square meters
	 	 	PHP * * *	 
	 	Third Floor
	 	 	4,632.93 square meters
	 	 	PHP * * *	 
	 	Fourth Floor
	 	 	4,632.93 square meters
	 	 	PHP * * *	 
	 	Fifth Floor
	 	 	4,619.64 square meters
	 	 	PHP * * *	 
	 

     In consideration of its lease of the Office Unit, the LESSEE shall pay a total monthly
rental of PHP * * * for the period from the Lease Commencement Date up to July 31, 2006.

     The rental rate for the succeeding four (4) years shall be increased at the following rates
per annum over the then-prevailing monthly rental rate:

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Period Covered	 	 	Rate Increase	 
	 	 	 	 	From	 	 	To	 	 	 	 
	 	Year 2

	 	 	First anniversary
of the Rental
Commencement Date
(or August 1, 2006)
	 	 	Day prior to second
anniversary of the
Rental Commencement
Date (or July 31,
2007)
	 	 	* * *	 
	 	Year 3

	 	 	Second anniversary
of the Rental
Commencement Date
(or August 1, 2007)
	 	 	Day prior to third
anniversary of the
Rental Commencement
Date (or July 31,
2008)
	 	 	* * *	 
	 	Year 4

	 	 	Third anniversary
of the Rental
Commencement Date
(or August 1, 2008)
	 	 	Day prior to fourth
anniversary of the
Rental Commencement
Date (or
	 	 	* * *	 
	 

*Confidential material redacted and filed separately with the Commission.

 

5

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Period Covered	 	 	Rate Increase	 
	 	 	 	 	From	 	 	To	 	 	 	 
	 	 	 	 	 	 	 	July 31, 2009)	 	 	 	 
	 	Year 5

	 	 	Fourth anniversary of
the Rental
Commencement Date (or
August 1, 2009)
	 	 	Day prior to fifth
anniversary of the
Rental Commencement
Date (or July 31,
2010)
	 	 	* * *	 
	 

     The monthly rent due for the year commencing on the fifth anniversary of the Rental
Commencement Date up to the day prior to the sixth anniversary of the Rental Commencement Date
shall be computed as follows: (i) in the event that the then prevailing monthly market rental rate
(computed per square meter) of office units at the Makati Stock Exchange Building is higher than
the then prevailing monthly rental rate (computed per square meter) of the Office Unit, the monthly
rent at year 6 shall be equal to the lower of: (1) the then prevailing monthly market lease rate
of office spaces at the Makati Stock Exchange Building; or (2) the amount which is equal to the
then prevailing monthly lease rate for the Office Unit plus * * * thereof; or (ii) in the
event that the then prevailing monthly market rental rate (computed per square meter) of office
units at the Makati Stock Exchange Building is lower than the then prevailing monthly rental rate
(computed per square meter) of the Office Unit, the monthly rent shall be the higher of: (1) the
then prevailing monthly market lease rate of office spaces at the Makati Stock Exchange Building;
or (2) the amount which is equal to the then prevailing lease rate for the Leased Premises less
* * * thereof. For this purpose, not later than sixty (60) days prior to the fifth
anniversary of the Rental Commencement Date, the Parties shall appoint a mutually acceptable
independent property consultant to determine the prevailing market lease rate of office spaces at
the Makati Stock Exchange Building.

     It is hereby agreed that for the first five (5) years of the Lease Term, rent shall be paid
and liquidated by the LESSEE on a monthly basis within the first five (5) working days of the month
to which such rent corresponds. Commencing on the sixth (6th) year of the Lease Term, rent shall
be paid on a quarterly basis; the amount corresponding to the monthly rent for the first two (2)
months of the calendar quarter shall be paid on or before the fifth (5th) working day of
the calendar quarter to which such rent corresponds, and the amount corresponding to the monthly
rent for the third (3rd) month of that particular quarter shall be paid on or before the
fifth (5th) working day of the second month of that quarter.

     The monthly rental rate for the remainder of the Lease Term shall be increased at the
following rates per annum over the then-prevailing monthly rental rate:

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Period Covered	 	 	Rate Increase
	 	 	 	 	From	 	 	To	 	 	 	 
	 	Year 7

	 	 	Sixth anniversary
of the Rental
Commencement Date
(or August 1, 2011)
	 	 	Day prior to the
seventh anniversary
of the Rental
Commencement Date
(or July 31, 2012)
	 	 	* * *	 
	 	Year 8

	 	 	Seventh anniversary
of the Rental
Commencement Date
(or August 1, 2012)
	 	 	Day prior to the
eight anniversary
of the Rental
Commencement Date
(or July 31, 2013)
	 	 	* * *	 
	 

*Confidential material redacted and filed separately with the Commission.

 

6

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Period Covered	 	 	Rate Increase	 
	 	 	 	 	From	 	 	To	 	 	 	 
	 	Year 9

	 	 	Eighth anniversary
of the Rental
Commencement Date
(or August 1, 2013)
	 	 	Day prior to the
ninth anniversary
of the Rental
Commencement Date
(or July 31, 2014)
	 	 	* * *	 
	 	Year 10

	 	 	Ninth anniversary
of the Rental
Commencement Date
(or August 1, 2014)
	 	 	Expiration of the
Lease Term (or July
31, 2015)
	 	 	* * *	 
	 

     b) Parking Slots

     From the Rental Commencement Date up to July 31, 2006, the applicable monthly rent per slot
shall be equivalent to PHP * * *, or an aggregate quarterly rental rate for the Parking Slots of PHP * * *.
Thereafter, the rent per slot per month shall be subject to annual escalation at the rate of * * *
per year on each anniversary of the Rental Commencement Date.

     It is hereby agreed that for the first five (5) years of the Lease Term, rent shall be paid
and liquidated by the LESSEE on a monthly basis within the first five (5) working days of the month
to which such rent corresponds. Commencing on the sixth (6th) year of the Lease Term, rent shall
be paid on a quarterly basis; the amount corresponding to the monthly rent for the first two (2)
months of the calendar quarter shall be paid on or before the fifth (5th) working day of
the calendar quarter to which such rent corresponds, and the amount corresponding to the monthly
rent for the third (3rd) month of that particular quarter shall be paid on or before the
fifth (5th) working day of the second month of that quarter.

     Rents are due and payable without need of demand at the LESSOR’s office.

6. Construction Bond:

     Prior to the fit-out of the Leased Premises or any portion thereof, and upon the turnover of
the Leased Premises or any portion thereof, the LESSEE shall post a construction bond which shall
be in proportion to the amount of space actually turned over and based on the amount of PHP * *
* for the entire Office Space. Upon complete turn over of the entire Office Space, the value
of the construction bond provided by PEOPLESUPPORT’s Contractor should have been increased so as to
amount to PHP * * * .

     Commencing on the second year of the Lease Term, within seven (7) days prior to any
construction, fit-out or renovation within the Leased Premises or any portion thereof, the LESSEE
shall cause its contractor to submit a cash construction bond equivalent to one (1) month’s rent in
effect at the time construction is to be undertaken by the LESSEE.

7. Security Deposit:

     The security deposit due to the LESSOR under Article 4.5 of the Contract of Lease shall always
be maintained at PHP * * * for the Office Unit and PHP * * * for the

*Confidential material redacted and filed separately with the Commission.

 

7

Parking Slots. The security deposit shall remain fixed and shall not be subject to escalation for
the duration of the Lease Term.

     The following additional terms and conditions shall govern the security deposit:

     The security deposit shall be paid in three (3) equal installments as follows:

	 	1.  	PHP * * * for the Office Unit and PHP * * * for
the Parking Slots shall be paid upon turn-over of possession of the Office Unit
but in no case earlier than April 15, 2005;
	 
	 	2.  	PHP 6 * * * for the Office Unit and PHP * * * for
the Parking Slots shall be paid on May 15, 2005; and
	 
	 	3.  	PHP 6 * * * for the Office Unit and PHP * * * for
the Parking Slots shall be paid on June 15, 2005.

     Payment of the security deposit shall be made either in cash or in check made payable in the
name of Ayala Land, Inc. The receipt of a check in payment of the security deposit due hereunder
shall not produce the effect of payment until the amount thereof is actually received.

8. Advance Rental:

     The advance rental to be due to the LESSOR under Article 4.6 of the Contract of Lease shall
always be maintained at an amount equivalent to three (3) months’ rent, which is currently at
PHP * * * for the Office Unit and PHP * * * for the Parking Slots.

     The following additional terms and conditions shall govern the advance rental:

     The advance rental shall be paid in three equal installments as follows:

	 	1.  	PHP * * * for the Office Unit and PHP * * * for
the Parking Slots has been paid as of December, 2003;
	 
	 	2.  	PHP * * * for the Office Unit and PHP * * * for
the Parking Slots shall be paid upon the start of construction of the Building
which shall be the date of groundbreaking; provided that the LESSOR shall
notify the LESSEE in writing of the date of groundbreaking and the due date for
payment of the second installment on the advance rental; and
	 
	 	3.  	PHP * * * for the Office Unit and PHP * * * for
the Parking Slots shall be paid in September 2004 or six (6) months from the
start of construction, whichever is earlier; provided that the LESSOR shall
notify the LESSEE in writing of the date on which the third installment on the
advance rental shall be due.

*Confidential material redacted and filed separately with the Commission.

 

8

     The LESSOR agrees that the advance rental shall not be applied against any other obligations
which remains due and unpaid, even though the security deposit may be insufficient to answer for
the same. The advance rental shall be applied as rent for the last three (3) months of the Lease
Term.

     All the abovementioned rentals in Sections 5 and 8 of this Annex are exclusive of the Value
Added Tax (VAT), which, if applicable, shall be for the LESSEE’s account, to be paid together with
the rents due on or before the date specified in the applicable statement of account.

9. Common Area Charges:

     Charges for Common Area expenses pursuant to Article 5.3 of the Contract of Lease shall be
equivalent to the following monthly rates per square meter of the leaseable area occupied by the
Office Unit, as shown below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Leased	 	 	 	Common Area	 	 	 	Absolute	 	 
	 	Period 	 	 	Area	 	 	 	Per Sqm./Mo.	 	 	 	Amount	 	 
	 	August 1, 2005 to
July 31, 2006
	 	 	15,042.50 sqm.	 	 	 	PHP * * *	 	 	 	 	PHP * * *	 	 

Thereafter, subject to annual adjustments on

each anniversary of the Rental Commencement Date.

     The rate or the amount of Common Area charges shall be increased annually at the fixed rate of
* * * per annum over the current monthly rate of the Common Area charges

10. Air-conditioning:

     Charges for providing air-conditioning as specified under Article 6.1 of the Contract of Lease
shall be equivalent to the following monthly rates per square meter of the leaseable area occupied
by the Office Unit, as shown below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Leased	 	 	 	Aircon Charges	 	 	 	Absolute	 	 
	 	Period	 	 	Area	 	 	 	Per Sqm./Mo.	 	 	 	Amount	 	 
	 	August 1, 2005 to
July 31, 2006
	 	 	15,042.50 sqm.	 	 	 	PHP * * *	 	 	 	 	PHP * * *	 	 

Thereafter, subject to annual adjustments on

each anniversary of the Rental Commencement Date.

     The following additional terms and conditions shall govern the Air-conditioning.

     It is agreed that the LESSOR shall provide the LESSEE with the option to shut off the
air-conditioning per floor depending on the demands of the LESSEE; provided, that, the LESSEE shall
give prior notice to the LESSOR of the need to shut off the air-conditioning system.

*Confidential material redacted and filed separately with the Commission.

 

 

9

     The Office Unit shall be supplied with air-conditioning 24 hours a day, seven (7) days a week
with a maximum air-conditioning system capacity of 940 tons of refrigeration (“TR”); provided that,
in compliance with the LESSEE’s requirements, the air-conditioning system shall be running at 79%
capacity, which is equivalent to 743 TR, from 8 a.m. of any day to 6 p.m. of the same day.

11. Electricity:

     In addition to the liability for all charges for supplying electrical power to the Leased
Premises as stipulated in Article 6.3 of the Contract of Lease, the LESSEE shall pay and discharge
all charges for supplying electrical power to the restrooms located in the ground, third, fourth,
and fifth floors at the same rates charged by Meralco to its concessionaires (as may be adjusted
from time to time) based on the number of kilowatts consumed by these restrooms as evidenced by the
sub-meter separately provided by the LESSEE for electric consumption within these restrooms.
Billings for electric consumption shall be sent to the LESSEE on a monthly basis.

12. Generators:

     In relation to Article 6.5 of the Contract of Lease, the LESSEE shall pay and discharge all
charges for supplying emergency power to the Leased Premises at a reasonable rate to be determined
by the LESSOR based on two (2) units of 1870 KVA water cooled diesel engine generators; provided,
that the LESSEE shall be liable for the charges for supplying emergency power to the Leased
Premises except in instances when the need for the supply of emergency power arises due to
occurrences within the control of the LESSOR. Such rate may be adjusted as and when the cost of
diesel fuel increases. Billings and all supporting records of emergency power consumption shall be
sent to the LESSEE on a monthly basis.

     The LESSOR warrants and covenants that the generators for supplying emergency power, as
provided under the Contract of Lease, shall be maintained in good running condition at all times.
To this end, the LESSOR shall contract with an independent and reputable company for the
maintenance of the generators and shall bear the costs of such repairs and maintenance works.
However, it is expressly understood that the LESSOR shall not under any circumstance be held liable
for any breakdown, failure or non-performance of the generators except when such breakdown, failure
or non-performance is attributable to the fault or negligence of the LESSOR, its employees, agents
or guests.

     The LESSEE shall not permit, suffer or cause any act to be done whereby the maximum allowable
electrical load or the maximum allowable voltage capacity of the Leased Premises shall be exceeded.
In the event that there shall be an increase in the electrical load requirement of the LESSEE or
there shall be a need for any increase in the electrical load provisions of the Leased Premises
(and consequently there shall be a need to provide additional generators), the LESSEE shall obtain
the prior written approval of the LESSOR and any such increase and provisions therefor shall be
subject to negotiations between and mutual agreement of the Parties.

 

 

10

13. Security Guard Services:

     The LESSOR shall cause security guard services to be provided for the Building on a 24- hour,
seven day a week basis, as follows:

     The LESSOR shall cause to be provided * * *. The LESSOR shall cause to be assigned * * *.

     The LESSEE expressly acknowledges and agrees that the foregoing security guard services are
sufficient and adequately meet its requirements.

14. Interest And Penalty Charges:

     The interest due from the LESSEE under Article 8 of the Contract of Lease shall be based on
* * * per month until the principal amount shall be fully paid. Penalty due from the
LESSEE under Article 8 of the Contract of Lease shall be based on * * * per month until
the principal amount shall be fully paid.

15. Sub-Lease:

     In relation to Article 10.1 of the Contract of Lease, the LESSOR and the LESSEE have agreed
that the LESSEE shall have the right to sub-lease all or any part of the Office Unit and the
Parking Slots; provided that, prior to entering into any sub-lease arrangement, the LESSEE shall
obtain the LESSOR’s prior written consent, which consent shall not be unreasonably withheld or
delayed, for such sub-lessee and for the terms and conditions for such sub-lease; provided further
that, the contract of sub-lease shall be subject to all the terms and conditions of the Contract of
Lease and the LESSEE shall remain responsible for complying with and ensuring the sub-lessee’s
compliance with the terms of the Contract of Lease. In no case shall the use or occupancy of the
Office Unit and/or the Parking Slots or any area covered by the sub-lease contract be contrary to
the use and occupancy of the Leased Premises as required by the Contract of Lease, nor shall any
undertaking of any sub-lessee under a sub-lease contract impair or be detrimental to the exercise
by the LESSOR of any of its rights under the Contract of Lease. The LESSOR reserves the right to
determine the need to execute, and once such determination has been made, the LESSEE shall so
ensure the execution of, a tripartite agreement among the LESSOR, the LESSEE and the sub-lessee
under which the sub-lessee shall have direct rental obligations to the LESSOR. The LESSOR shall
also determine the direct rental to be paid to the LESSOR by a sub-lessee and shall have the option
to require that the rent due from the sub-lessee be based on the same rates applied to the LESSEE
or be determined on the same basis specified hereunder. The LESSEE undertakes to inform its
sub-lessees of all terms and conditions of the Contract of Lease, including the necessity of a
tripartite agreement if so required by the LESSOR. All sub-lease contracts shall contain a
reference to and shall not be inconsistent with the Contract of Lease. Moreover, the LESSEE shall
stipulate in all of its sub-lease contracts the right of the

*Confidential material redacted and filed separately with the Commission.

 

 

11

LESSOR to require the LESSEE to cancel the sub-lease and/or tripartite agreement without need of
any court action in the event of breach of the terms and conditions of the sub-lease and Contract
of Lease.

     The LESSEE shall have the right to sub-lease any portion of the Office Unit and the Parking
Slots to any of its affiliate companies without need for obtaining the LESSOR’s written consent;
provided that, prior written notice is given to the LESSOR of such sub-lease arrangement; provided
further that, all other terms and conditions as provided in the immediately preceding paragraph
shall apply to the sub-lease to the LESSEE’s affiliate company.

     In addition, the LESSEE shall have the right to allow the use, by any affiliate company of the
LESSEE, of the Office Unit and the Parking Slots without need for the Parties to enter into a
sub-lease arrangement; provided that, prior written notice is given to the LESSOR of such intent to
allow use by the LESSEE’s affiliate company; provided, further, that all the other terms and
conditions as provided in the first paragraph of this Section shall apply to the use of the Leased
Premises by the LESSEE’s affiliate company.

     For this purpose, “affiliate” means any corporation, partnership or other form of association
which is (i) owned or Controlled, directly or indirectly, by the LESSEE, or (ii) directly or
indirectly Controlling the LESSEE, or (iii) Controlled by or under Common Control, directly or
indirectly, with the LESSEE. In turn, “Control” (including with correlative meanings, the terms
“Controlling”, “Controlled by” and “under Common Control”) means the power to direct or cause the
direction of the management and policies of any corporation, partnership or other form of
association, whether through the ownership of voting stock or by contract or otherwise.

16. Naming Rights to the Building:

     In addition to the provision stipulated in Article 10.4 of the Contract of Lease, the LESSOR
has agreed to grant the LESSEE the naming rights to the Building; provided that, the LESSEE shall
inform the LESSOR in writing of the name chosen for the Building at least thirty (30) days prior to
the use thereof by the LESSEE; provided, further, that the naming rights shall revert to the
LESSOR: (1) upon the expiration of this Contract of Lease; or (2) in the event that the LESSEE
pre-terminates the lease for more than half of the Office Unit, resulting in the LESSEE leasing
less than 7,882.04 square meters of office space. However, notwithstanding the loss of naming
rights, the LESSEE shall be entitled to put up signs that identify its offices in the Building,
subject to compliance with the restrictions in: (1) the Consolidated and Revised Deed Restrictions
for Ayala North, Ayala South, Ayala Triangle, Roxas Triangle, Salcedo Village, Legazpi Village,
Buendia Extension, Apartment Ridge (Ayala Avenue) and Apartment Ridge Extension (Makati Avenue), as
may be amended from time to time; (2) Makati City Zoning Ordinance No. 2000-078, as may be amended
from time to time; (3) Makati City Comprehensive Land Use Plan, as may be amended from time to
time; (4) the National Building Code of the Philippines, as the same may be amended from time to
time; and (5) the provisions of this Contract of Lease.

 

12

17. Use of Office Unit:

     In connection with Article 10.9 of the Contract of Lease, the LESSEE may allow its employees
to remain in the Leased Premises overnight or from 6:00 p.m. to 8:00 a.m. of the following day;
provided that it is necessary for the business operations of the LESSEE for such employees to
remain in the Leased Premises for said period of time.

     The LESSEE shall be allowed to carve out a portion of the Leased Premises for use as an
employee lounge and rest area for use by the LESSEE’s employees as a transitory rest and sleeping
area, subject to the concurrence of all of the following conditions:

	 	(a)  	the employee lounge and rest area shall not exceed 40 square meters in area;
	 
	 	(b)  	only employees of the LESSEE shall be allowed to enter into, use or occupy the
employee lounge and rest area; and
	 
	 	(c)  	the employee lounge and rest area shall not be rented out, nor shall the LESSEE
receive any compensation or consideration for the use of the employee lounge and rest
area.

     In no event shall the employee lounge and rest area be used as a residence or domestic
quarters by the LESSEE, its employees, agents, representatives, clients and guests.

     Food and beverages shall not be served in the Leased Premises, other than in the pantry to be
provided by the LESSEE in the Leased Premises. Should the LESSEE serve food and beverages in the
Leased Premises, other than in the pantry, the LESSEE shall be required to provide, at its own
cost, additional pest control services for the Leased Premises.

18. Use of Parking Slots:

     The use by the LESSEE and its employees of the Leased Premises shall be subject to the
following terms and conditions:

     (a) Unless otherwise restricted and advised for security, maintenance or other reasons, the
LESSEE and its employees shall be allowed entry into and exit from the parking facilities, and use
of the Leased Parking Premises for 24 hours each day for seven days in a week.

     (b) Only the vehicle identified by the LESSEE in a list to be submitted to the LESSOR as the
vehicle authorized to park in a designated parking slot shall be allowed to park in said designated
parking slot at any given time. Under no circumstances shall trucks, lorries, delivery vans,
trailers, or any other heavy-type vehicles be parked in the Leased Premises.

     (c) While the administration of the Building includes the provision of the services of
security guards for the Building including its parking facilities, it is understood that the duties
and responsibilities of security guards is confined only to regulate the flow of traffic within the
Building and its parking facilities. Accordingly, the LESSEE agrees to be primarily responsible
for loss or damage to the vehicles (including the contents thereof) parked in the Leased Premises.
The LESSOR shall not be liable in any circumstance for any

 

13

loss or damage to any of the vehicles, its/their accessories, parts or articles therein unless such
loss, damage or injury shall be established to have been due to or caused by the LESSOR. In
addition, the LESSOR shall not be liable for any loss or injury suffered by third persons as a
result of or in connection with the use or occupancy by the LESSEE or its employees of the Leased
Premises and the parking facilities of the Building.

     (d) The LESSEE shall be liable for any damage caused to the Building, the facilities thereof
including its parking facilities, and to the vehicles parked therein and for any injury to the
Building personnel and to third parties due to the fault, carelessness or negligence of the LESSEE,
its employees, agents or other persons acting under the LESSEE’s instructions or on the LESSEE’s
behalf.

     (e) The LESSOR reserves the right, for security, maintenance or other reasons, to temporarily
prevent the vehicles of the LESSEE or its employees from entering or leaving the parking facilities
in the Building or to temporarily designate, for any given period of time, other parking slots in

the parking facilities of the Building, for the use of the LESSEE or its employees.

     (f) The LESSEE shall not assign or transfer its rights under this Contract to another party
without the prior written consent of the LESSOR.

19. Maintenance of Leased Premises:

     The following additional terms and conditions shall govern the maintenance of the Leased
Premises:

     The LESSOR shall maintain the Common Areas and the exterior surfaces of the Building at its
own cost.

     The LESSEE shall be responsible for and shall undertake at its own cost ordinary or minor
repairs on the Leased Premises and those due to, necessitated by or arising from the fault or
negligence of the LESSEE, its employees, clients, agents and guests. On the other hand, the LESSOR
shall be responsible for major or extraordinary repairs on the Leased Premises, unless such repairs
are due to, necessitated by or arise from the fault or negligence of the LESSEE, its employees,
clients, agents and guests.

     For purposes of determining whether a repair is ordinary/minor or extraordinary/major as
required in this Section, minor or ordinary repairs shall mean those occasioned by the normal or
ordinary use of the Leased Premises (normal wear and tear), are indispensable for its preservation,
and the cost of which shall not exceed * * * Pesos (PHP * * *) for any single repair or incident. On
the other hand, major or extraordinary repairs shall mean those which are occasioned by causes
other than the normal or ordinary use of the Leased Premises (including but not limited to acts
constituting Force Majeure), those due to inherent structural defects in the Building or the Leased
Premises, and those the cost of which exceed * * * Pesos (PHP * * *) for any single repair or
incident.

*Confidential material redacted and filed separately with the Commission.

 

14

20. Other Conditions:

     (a) The LESSOR is hereby authorized to conduct a credit investigation of the LESSEE at anytime
during the term of the Contract of Lease.

     (b) For the duration of the Lease Term, and while the LESSEE is leasing the Office Space on
the ground floor of the Building, the LESSEE shall be allowed to use the ground floor lobby (with
an area of approximately 254.92 square meters) and the storage space at the second floor of the
Building (with an area of approximately 168.91 square meters); provided, that, in the event of
pre-termination by the LESSEE of its lease of the Office Unit on the ground floor of the Building,
the LESSEE shall no longer be allowed to utilize the ground floor lobby and the storage space. No
additional rent shall be charged for the use of such space.

     (c) The LESSEE shall be responsible for the maintenance and cleaning of all the restrooms
located in the ground, third, fourth, and fifth floors of the Building, which are exclusively
dedicated to the use of the LESSEE, its employees, representatives, agents and guests. For this
purpose, the LESSEE shall require the regular cleaning thereof at least four (4) times for every
regular eight (8) hour shifts, and shall maintain the finish of the walls, normal wear and tear
excepted.

21. Additional Warranties of the Lessee:

     In addition to its warranties under Article 11.2 of the Contract of Lease, the LESSEE
represents, warrants and covenants in favor of the LESSOR that:

     (a) The LESSEE is registered with the Philippine Economic Zone Authority as an information
technology enterprise; and

     (b) The LESSEE is exempt from payment of the VAT.

22. Option to Rescind

     In connection with Article 13.2 of the Contract of Lease, the LESSOR agrees that in the event
either party exercises its right to rescind the Contract of Lease due to Force Majeure, the LESSOR
shall return all deposits and unused rentals to the LESSEE within a reasonable period, without
interest; provided, that the security deposit shall be returned less whatever amounts the LESSEE
may owe the LESSOR or which the LESSOR may apply against the security deposit.

23. Pre-Termination:

     (a) In no event shall the LESSEE pre-terminate the lease for the period from the Rental
Commencement Date up to the day prior to the third anniversary of the Rental Commencement Date.

 

15

     (b) Commencing on the third anniversary of the Rental Commencement Date, the LESSEE may
pre-terminate the lease subject to the occurrence of all of the following conditions:

          1. The LESSEE shall provide the LESSOR a written notice of pre-termination at
least nine (9) months prior to the effective date of termination;

          2. The LESSEE shall be liable for a penalty in an amount equivalent to three
(3) months’ rent based on the prevailing rate;

          3. Prior to the pre-termination of the lease, the LESSEE shall have vacated all
of the other spaces leased by the LESSEE in Metro Manila; and

          4. The LESSEE shall not enter into any new leases in Metro Manila within a
period of one (1) year after the effective date of pre-termination of the lease;
provided that, the LESSEE may only enter into a new lease in Metro Manila within the
said period in the event that there is no available office space for lease in the
Building.

     (c) Commencing on the fifth (5th) anniversary of the Rental Commencement Date, the
LESSEE may pre-terminate the lease subject to the occurrence of all of the following conditions:

          1. The LESSEE shall provide the LESSOR with a written notice of pre-termination
at least six (6) months prior to the effective date of termination; and

          2. The LESSEE shall be liable for a penalty in an amount equivalent * *
* based on the prevailing rate.

     In the event of pre-termination by the LESSEE under sections (b) and (c) of this Article, the
LESSOR shall be entitled to apply the penalty for which the LESSEE shall be liable by reason of
such pre-termination against the amount of the security deposit specified under Article 4.5 of the
Contract of Lease. Should the amount of the security deposit be insufficient to cover such
penalty, then, the LESSOR shall be entitled to immediately receive from the LESSEE the amount of
any deficiency.

     (d) In the event that the Parties agree to an extension of the lease term, the LESSEE may
pre-terminate the lease at any time during the extended Lease Term by providing the LESSOR a
written notice of pre-termination at least six (6) months prior to the effective date of
termination of the Contract of Lease.

     The LESSOR shall likewise have the right to pre-terminate the lease commencing on the tenth
(10th) anniversary of the Rental Commencement Date by providing the LESSEE written
notice of pre-termination at least twenty four (24) months prior to the effective date of
termination; provided, that the LESSOR shall only be allowed to pre-terminate the lease on the
following grounds: (1) the LESSOR shall decide to demolish the Building (or any portion thereof)
and establish a new structure on the site on which the Building stands (the “Site”), or (2) the
LESSOR shall decide to sell the Site; provided further that, in the event that the

*Confidential material redacted and filed separately with the Commission.

 

16

LESSOR shall have obtained a firm offer to buy the Site from a third party, the LESSEE shall be
given the right of first refusal on the same.

     In the event that the LESSOR shall decide to sell the Site, and shall have obtained a firm
offer to buy the Site from a third party, the LESSOR shall first offer the Site to the LESSEE, by
serving on the LESSEE a written offer, specifying the price, terms and conditions of the offer,
which price, terms and conditions must be based on a bona fide firm written offer to purchase from
any third party. The LESSEE shall have a period of thirty (30) days from receipt of a copy of the
offer within which to irrevocably accept in writing the offer. If the LESSEE does not accept the
offer within the same thirty-day period, the LESSOR shall be free to sell the Site to any third
party; provided, that, the sale of the Site in favor of such third party purchaser shall be on
terms and conditions no more favorable than those offered to the LESSEE.

     In the event that the LESSOR is not able to sell the Site before the effective date of
termination of the Contract of Lease, the Parties shall discuss and negotiate on the possibility of
extending the lease further on a year-to-year basis, subject to the same terms and conditions as
the Contract of Lease.

     (e) In the event of pre-termination by the LESSEE of the lease over the Office Unit or a
portion thereof, the LESSOR shall be free to lease the Office Unit or any portion thereof the lease
of which has been vacated by the LESSEE to any prospective tenant, provided however, * *
* . It is understood by the Parties that the list in Annex C may be updated or amended by the
LESSEE from time to time, by providing prior written notice to the LESSOR of any such update or
amendment.

     In the event of pre-termination by the LESSEE of the Contract of Lease over the entire Office
Unit, the LESSOR shall be free to lease the Office Unit or any portion thereof to any prospective
tenant, without any prohibition.

24. Reduction in the Area of the Leased Premises:

     Notwithstanding the provision on pre-termination in Section 23 above, commencing on the third
anniversary of the Lease Commencement Date, in the event of a downturn in the business operations
of the LESSEE, it shall be entitled to partially reduce the area of the Leased Premises by floors
subject to the same conditions as specified in Section 23(b), governing the pre-termination of the
lease commencing from the third anniversary of the Contract of Lease.

25. Inspection in Cases of Pre-Termination:

     In the event of pre-termination of the lease (or reduction in the area of the Leased
Premises), and immediately after the LESSOR’s receipt of the notice of pre-termination (or of
reduction in area), the LESSEE shall allow, during business hours and upon prior written

*Confidential material redacted and filed separately with the Commission.

 

17

     notice, the LESSOR’s authorized representatives and prospective tenants to inspect the Leased
Premises. During such period, the LESSOR may exhibit, where it shall think fit, a notice offering
the Leased Premises for lease, which the LESSEE shall not conceal in any way.

26. Partial Destruction of the Leased Premises:

     In the event of a partial destruction of the Leased Premises, as mutually determined and
agreed upon by the LESSOR and the LESSEE, the LESSEE may choose between a proportional reduction of
the rent and the termination of the Contract of Lease.

27. Lessor’s Additional Undertakings

     The LESSOR agrees that within a period of five (5) years from the Rental Commencement Date, it
shall not construct any building or structure on Lot 2-A-2-B-2 located at the corner of Ayala
Avenue and Amorsolo Street, which would have the effect of obstructing the view of the Building.
Lot 2-A-2-B-2 is the lot adjacent to the Site on which the Building stands, has an area of 1,732
square meters, and is shown in the map attached hereto as Annex D.

     The LESSOR further agrees that it shall not exercise any of its exclusive rights under Article
3.4 of the Contract of Lease in such a way as to impair the use of the Leased Premises as an
office.

28. Lessor’s Right to Assign the Lease:

     The LESSOR shall have the right to assign or transfer its rights under this Contract to a
third party without need for obtaining the LESSEE’s written consent; provided, that, prior to any
such assignment or transfer, the LESSOR shall provide the LESSEE with prior written notice of such
assignment or transfer; provided, further that, the assignee shall respect the LESSEE’s rights
under this Contract of Lease.

29. Limitation of Liability of the Lessee:

     The liability of the LESSEE for all damages, claims, actions, demands, and proceedings as
contemplated in Article 12.2 of the Contract of Lease shall not exceed US Dollars: * * *
in the aggregate.

In case of conflict between Annex B and the lease contract, the provisions of this Annex B shall
prevail.

Ali legal/CBG/CBG-People Support-lease contract-Annex B-13jan05-final

*Confidential material redacted and filed separately with the Commission.

 

18

[Letterhead of Ayala Land, Inc.]

14 January 2005

PEOPLESUPPORT (PHILIPPINES), INC.

12th  to 14th Floors, Philamlife Tower

8767 Paseo de Roxas, Makati City

Re: Lease Contract with Ayala Land, Inc. for the PeopleSupport Center

Gentlemen:

We refer to the Contract of Lease dated 14 January 2005 between Ayala Land, Inc. as LESSOR and
PeopleSupport (Philippines), Inc. as LESSEE entered as Doc. No. 7g, in Page 17, Book xxii, Series
of 2005 in the notarial register of Makati City Notary Public Rodolfo David Navarro (the
“Contract”). Terms defined herein shall have the same meanings ascribed to them in the Contract.

This confirms our agreement that the LESSEE’s right to sub-lease the Leased Premises as provided in
Article 10.1 of the Contract and Section 15 of Annex B thereof, shall be further subject to the
following conditions as provided in this letter. Furthermore, the Parties agree that the first
paragraph of Section 15 shall be identified as Sub-section (a) thereof, and that the second
paragraph onwards of Section 15 of Annex B shall be amended as follows:

          (b) The LESSEE shall have the right to sub-lease any portion of the Office Unit
and the Parking Slots to a Permitted Sub-Lessee without need for obtaining the
LESSOR’s written consent; provided that, prior written notice is given to the LESSOR of such
sub-lease arrangement; provided further that, all other terms and conditions as provided in
Sub-section (a) hereof shall apply to the sub-lease to the Permitted
Sub-Lessee.

          In addition, the LESSEE shall have the right to allow the use, by a Permitted
Sub-Lessee, of the Office Unit and the Parking Slots without need for the Parties to
enter into a sub-lease arrangement; provided that, prior written notice is given to the
LESSOR of such intent to allow use by the Permitted Sub-Lessee; provided, further,
that all the other terms and conditions as provided in the paragraph (a) of this Section
shall apply to the use of the Leased Premises by the Permitted Sub-Lessee.

          For this purpose, “Permitted Sub-Lessee” shall mean an Affiliate of the LESSEE
which is not, or which does not fall under any of the following categories: 

          (i) an adverse party in any action or proceeding of whatever nature, whether civil,
criminal, administrative or judicial, and whether actually filed or threatened, by or
against the LESSOR or any of its Affiliates; or 

          (ii) engaged in any business which is in competition with the business in the
Philippines of the LESSOR or any of its Affiliates; or 

 

 

19

          (iii) hostile or antagonistic to the LESSOR or any of its Affiliates, in any manner
similar to the foregoing. 

          For the purposes of this definition, it is understood that the following businesses
are deemed to be businesses which are in competition with the business of the LESSOR or any
of its Affiliates: (i) real estate, including but not limited to the development and
marketing of any and all types of real estate products, whether resulting from horizontal
land development or vertical development; the development, operation and management of
retail commercial centers; real estate brokerage; property management; theater operation and
management; food court operation and management; leisure development; hotel operations,
serviced apartment operations, property development, family entertainment center operations
or management; entertainment facilities management; and wholesale consumer products
distribution; (ii) general construction, including but not limited to pre-fabricated house
manufacturing; (iii) infrastructure development, including but not limited to transportation
development and rail transport and development; (iv) banking, including but not limited to
the operation of a financing company, investment house or securities brokerage firm; and (v)
telecommunications.

          In turn, “Affiliate” means any corporation, partnership or other form of
association (i) which is owned or Controlled, directly or indirectly, by the LESSEE, or (ii)
directly or indirectly Controlling the LESSEE, or (iii) Controlled by or under Common
Control, directly or indirectly, with the LESSEE. As used in this definition, “Control”
(including with correlative meanings, the terms “Controlling”, “Controlled by” and “under
Common Control”) means the power to direct or cause the direction of the management and
policies of any corporation, partnership or other form of association, whether through the
ownership of voting stock or by contract or otherwise.

          The LESSOR is hereby authorized to conduct a credit investigation of the Permitted
Sub-Lessee at any time. In the event that the result of the credit investigation is
unfavorable, then the LESSOR shall inform the LESSEE. In the event that the negative
findings show that the Permitted Sub-Lessee is not financially capacitated, the LESSOR shall
notify the LESSEE, and provided that the LESSEE shall guarantee and shall remain responsible
for complying with and ensuring the Permitted Sub-Lessee’s compliance with the terms of the
Contract of Lease and of the contract of sub-lease, the sub-lease shall continue to be
valid. 

          For the avoidance of doubt, the “negative findings in the credit investigation”
shall refer to the LESSOR’s reasonable determination that the subject of such investigation
is not financially capacitated, has an unacceptable reputation, or has been indicted or
prosecuted for fraud or any other crime. 

          (c) For the avoidance of doubt, in the event that the Affiliate of the
LESSEE is engaged in any business which is in competition with the business in the
Philippines of the LESSOR or any of its Affiliates, the LESSEE may seek the LESSOR’s prior
written consent to sub-lease the Leased Premises to the Affiliate, which consent shall not
be unreasonably withheld, denied or delayed. However, if the Affiliate is deemed to be
hostile or antagonistic to the LESSOR, or has been indicted or prosecuted for fraud or any
other crime, the LESSEE would be informed of such situation, and shall be given an
opportunity to remedy such situation.

For the avoidance of doubt, the parties agree that these shall be additional requirements for a
person or entity to qualify as a sub-lessee not requiring LESSOR’s consent, aside from the
requirements set forth in Section 15 of Annex B.

 

 

20

Except as provided above, all the other terms and conditions of our Contract shall continue to be
in full force and effect.

Should the foregoing accurately represent the agreement of the parties, kindly indicate your
conformity on the space provided below and return to us the copy marked “Back to Ayala” not later
than 17 January 2005.

Very truly yours,

	 	 	 
	/s/ MA. Victoria E. Anonuevo

	 	/s/ MA. Carmela K. Ignacio
	MA. VICTORIA E. AÑONUEVO
	 	MA. CARMELA K. IGNACIO
	Attorney-in-Fact
	 	Attorney-in-Fact

CONFORME:

	 	 
	/s/ Ranierio M. Borja
	 
	

	RAINERIO M. BORJA
	 

CBG/CBG-Peoplesupport-Lease-side letter -finalexv10w13

 

Exhibit 10.13

CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION.

MASTER SERVICES AGREEMENT

This MASTER SERVICES AGREEMENT (the “Agreement”) is entered into effective June 11, 2003 (the
“Effective Date”), by and between the following parties (each hereinafter, a “Party” and
collectively, the “Parties”):

	 	 	 
	PeopleSupport, Inc.

	 	ConsumerInfo.com, Inc.
	1100 Glendon Avenue, Suite 1250

	 	***
	Los Angeles, CA 90024

	 	 
	 
	 	 
	Hereinafter referred to as “PeopleSupport”

	 	Hereinafter referred to as “Client”

The Parties agree as follows:

	1.  	SERVICES
	 
	A.  	Description. PeopleSupport will provide to Client those services, functions and
responsibilities (“Services”) as specified and in accordance with this Agreement and one or more
statements of work hereto as the Parties may execute from time to time (each, an “SOW”). The
Services shall include (i) the provision of equipment, software, telecommunication lines and other
facilities and training and personnel support as specified in the applicable SOW and (ii) any
services not specifically described in this Agreement or the applicable SOW that are a necessary
and customary part of the Services based on generally accepted industry practice. PeopleSupport
also shall provide the Services to those Client affiliates that are managed by Client and specified
in an SOW. Client at all times will be responsible for payment of invoices for Services provided
to such affiliates.
	 
	B.  	Additional SOWs and Change Orders. The Parties may mutually agree from time to time
to enter into additional SOWs, which will reference the terms and conditions of this Agreement and
will become effective upon mutual execution thereof. In addition, the Parties may agree during the
performance of the Services to modify the Services, add additional services to the scope of an SOW
that are materially different or materially changed from the Services, or to reflect material
changes to Client’s business, services or products or to the Client Provided Technology (defined in
Section 4(D)) (“Additional Services”) pursuant to a written, mutually agreed-upon change order to
an SOW (“Change Order”), including any changes to pricing. Upon mutual execution of a Change
Order, the Services shall include the Additional Services specified therein. The Parties agree
that the authorized representative of each Party specified in the applicable SOW shall accept a
Change Order in writing or by facsimile signature, each of which shall be subject to
countersignature by the authorized representative of the other Party. Unless and until the parties
mutually execute such Change Order, Services shall not be deemed to include Additional Services
referenced in such Change Order.
	 
	2.  	TERM AND TERMINATION
	 
	A.  	Term. The initial term of this Agreement (the “Term”) will commence on the Effective Date and
will continue for three (3) year(s) from the date thereof. The Term will renew automatically for
successive *** year terms unless and until either Party provides written notice of its intent
not to renew at least *** days before the expiration of the initial Term or
any subsequent renewal Term, or unless terminated earlier as otherwise provided herein. [The
Parties agree that the term of SOW #1, executed as of the Effective Date and attached hereto (“SOW
#1”), shall commence as of the Effective Date and continue for three (3) years from the date Client
provides PeopleSupport written notice
declaring that the Services are operational in accordance with mutually agreed acceptance
criteria unless otherwise terminated in accordance with this Agreement of such SOW # 1. SOW #1
will automatically renew for successive *** year terms unless either Party provides written
notice of its intent not to renew at least *** days before the expiration of
the initial Term or any subsequent renewal Term, or unless terminated earlier as otherwise provided
in this Agreement or in SOW #1.] The term of additional SOW(s) will be as set forth in such
SOW(s).
	 
	B.  	Termination

	 	1.  	Termination for Default. Either Party may terminate this Agreement or any SOW in
the event of any uncured material default in, or material breach of, any of the terms and
conditions of the Agreement or such SOW by the other Party, which default or breach continues
uncured for a period of *** after written notice of default from the terminating Party unless such
default, by its nature, cannot be reasonably cured within the above cure period then this Agreement
or the affected SOW may be terminated with *** notice.
	 
	 	2.  	Termination for Commencement Delay. Client may terminate any SOW upon *** written
notice to PeopleSupport in the event that PeopleSupport fails to commence delivery of operational
Services in accordance with the timeframe set forth in the applicable
SOW for *** days or
more except to the extent such delay arises from Client delay(s) and additional time is permitted
in accordance with Section 5(D).
	 
	 	3.  	Failure to Pay Amounts When Due. Except with respect to invoiced amounts disputed
in accordance with Section 3.F, Client’s failure to pay amounts payable hereunder when due shall
constitute an event of default. Client shall have *** after receipt of written notice to cure any
such payment default. PeopleSupport shall have the right to suspend Services under the applicable
SOW, after the expiration of such *** period without the provision of written notice if Client
fails to make the required payments, including payment of the ***, if applicable,
which is due by the *** of

PEOPLESUPPORT, INC. CONFIDENTIAL

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

	 	   	each month and delinquent if not paid by the *** of each
month. If there is an uncured, undisputed payment default, PeopleSupport may terminate the
Agreement and all SOWs under *** prior written notice.
	 
	 	4.  	Persistent Service Level Failure. Client may terminate this Agreement or the
applicable SOW, upon *** written notice to PeopleSupport, if PeopleSupport fails to achieve any
material service level specified in an SOW for *** in any *** period (“Trigger Event”) and Client
provides such notice within *** of the Trigger Event. Failure by Client to provide written notice
within *** days of a Trigger Event shall constitute a waiver thereof by Client. Client
acknowledges and agrees that, in connection with the initial ramp up of Services under an
applicable SOW, any failure to meet service levels specified in such SOW during the ***
months of Services under that SOW will not constitute a failure giving rise to a termination right
by Client.
	 
	 	5.  	Termination for PeopleSupport Financial Change. The chief financial officer or
controller of PeopleSupport will notify Client, *** of each calendar quarter, that PeopleSupport
has equivalent cash of at least *** basis at the end of such quarter. “Equivalent cash” shall mean
cash on hand and long and short term investments. If such notification shows that equivalent cash
*** Client will have the right, exercisable at its option within *** days of receipt of such
notification, to terminate the Agreement by providing PeopleSupport with *** days written
notice. Client will have the right, exercisable at its option within *** days of receipt of
PeopleSupport’s audited
annual, financial statements, to terminate the Agreement by providing PeopleSupport with
*** days written notice if such audited financial statements reflect a going concern
opinion issued by the auditor.
	 
	 	6.  	Termination on Bankruptcy Event. Either Party may terminate the Agreement
immediately if the other Party is the subject of a voluntary petition in bankruptcy or any
voluntary proceeding relating to insolvency, receivership, liquidation, or composition for the
benefit of creditors, if such petition or proceeding is not dismissed within *** days of
filing, or becomes the subject of any involuntary petition in bankruptcy or any involuntary
proceeding relating to insolvency, receivership, liquidation, or composition for the benefit of
creditors, if such petition or proceeding is not dismissed within *** days of filing.
	 
	 	7.  	Termination Upon PeopleSupport Change of Control. In the event of a change in control of PeopleSupport or a PeopleSupport affiliate
providing Services under this Agreement, PeopleSupport shall provide Client notice of such event
not less than *** days following the occurrence of such event. Client may then, at any time
within *** months after the later to occur of receipt of such notice or the occurrence of
such event, terminate this Agreement by giving PeopleSupport at least *** days prior written
notice. The right to terminate shall be deemed waived if Client provides written consent to such
change of control. A change of control of PeopleSupport or a PeopleSupport affiliate providing
Services under this Agreement is deemed to have occurred when control of such entity is acquired,
directly or indirectly, in a single transaction or series of related transactions, or all or
substantially all of the assets of PeopleSupport or such PeopleSupport affiliate are acquired by
any third party, or PeopleSupport or its affiliate is merged with or into another thirty party to
form a new entity.
	 
	 	8.  	Termination upon Change of Local Management Team. In the event that PeopleSupport’s
senior management team located in its *** facility is relocated by PeopleSupport to
another facility where Services are not provided to Client, then Client may, within *** of such
occurrence, terminate this Agreement upon *** written notice to PeopleSupport.

	C.  	Effect of Termination. Except as otherwise provided herein, in the event of a
termination pursuant to this Agreement, unless the default applies to all other SOWs or to the
operation of the Agreement as a whole, a default as to one SOW will not constitute a default with
respect to any other SOW(s) or the Agreement; provided, however, that Client may terminate any or
all SOWs upon termination of any SOW in accordance with this Agreement. Upon the expiration or
termination of this Agreement, any SOW or any of the Services: (i) PeopleSupport shall deliver to
Client all interim and completed deliverables, written materials and working papers relating to the
terminated Services belonging to Client that have been paid for; and (ii) Client shall pay
PeopleSupport for all Services performed in accordance with this Agreement through the termination
date.
	 
	D.  	Termination Assistance Services. Commencing upon the later to occur of (i) ***
months prior to the scheduled expiration date of an SOW, or (ii) the delivery of any notice of
termination or non-renewal of this Agreement or an SOW (or such other date as mutually agreed by
the Parties), and continuing through up to *** days following the effective
date of such expiration or termination (the “Termination Assistance Period”), PeopleSupport shall
(1) continue to provide to Client, or at Client’s request to Client’s designee, all or such part of
the Services as Client may request and provide to Client, or at Client’s request to Client’s
designee, and (ii) such additional reasonable cooperation, assistance and services, in accordance
with this Agreement, the applicable SOW, or as Client may otherwise request, to allow the Services
to continue without interruption or adverse effect and to facilitate the orderly transition and
migration of the Services to Client or its designee (the “Termination Assistance Services”).
Upon at least *** days prior written notice to PeopleSupport, Client may extend, from time
to time, the Termination Assistance Period until *** days following the
effective Agreement or SOW termination date. Client shall prepay for all requested Termination
Assistance Services monthly in advance in the event PeopleSupport terminates an SOW pursuant to
Section 2.B.3 and PeopleSupport shall have no obligation to provide Termination Assistance Services
until Client has paid all undisputed amounts payable to PeopleSupport.
	 
	E.  	Survival. The provisions set forth in Sections 2, 4, 6, 7, 8, 9 and 10 of this
Agreement will survive the termination or expiration of this Agreement and each SOW.
	 
	3.  	PRICING AND PAYMENT
	 
	A.  	Prices and Invoicing. Client agrees to pay PeopleSupport for the Services in
accordance with the prices set forth in the rate sheet set forth as Exhibit A or as set forth in
the applicable SOW. Client agrees to pre-pay to PeopleSupport the estimated *** as

					
	 	 	 	 	 
	PEOPLESUPPORT, INC. CONFIDENTIAL
	 	2
	 	 

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

	   	the Parties may specify in an SOW ***, on or before the *** day of each
calendar month, provided Client receives a ***. All amounts payable, as set forth on each invoice,
will be itemized by the applicable Service or as Client may reasonably request. Except as
otherwise set forth herein or in an SOW, payments are due within *** days following date of
invoice.
	 
	B.  	Reimbursement for Expenses. Subject to Client’s prior written approval and
authorization, Client will reimburse PeopleSupport for those expenses or charges expressly
authorized by Client.
	 
	C.  	Electronic Invoicing and Wire Transfer Payment. Client acknowledges that invoices
from PeopleSupport will be sent electronically, and Client agrees to make all payments to
PeopleSupport via wire transfer. Payments of amounts due will be wired via the U.S. Federal
Reserve System to:

***

***

	D.  	Effect of Non-Payment. In the event any amounts due hereunder are not timely paid,
such amounts will accrue late charges at the lesser of the rate of *** per annum or the highest
rate allowed by applicable law, from the due date. Payments subsequently received from Client will
be first applied to such late charges, then to amounts past due, and then to current amounts due.
	 
	E.  	Taxes. Client will reimburse PeopleSupport for any applicable U.S. state sales or
use taxes designated by a governmental authority upon Client’s receipt or use of the Services as a
whole for which PeopleSupport invoices Client within *** days after due. Except with
respect to the foregoing, PeopleSupport will be solely responsible for, and will pay, any and all
other use, excise, sales or privilege taxes, duties, value added taxes, fees, assessments or
similar liabilities however denominated which may now or hereafter be levied on this Agreement, the
Services, software, equipment, materials or other property (tangible or intangible) provided or
used to perform its obligations under this Agreement, chargeable to or against PeopleSupport or
Client by any applicable government authority.
	 
	F.  	Right to Dispute Invoices. Client may withhold any disputed portions of any invoiced
amounts payable hereunder upon written notice to PeopleSupport within *** of the invoice date
detailing the nature and specific circumstances surrounding such dispute and the amounts withheld.
Unless Client provides PeopleSupport with notice in writing of a dispute regarding the amounts due
hereunder within *** after the date of the invoice on which the invoicing appears, including the
basis for such dispute, the invoice will be deemed approved by Client and the right to dispute any
such amounts invoiced will be deemed waived.
	 
	4.  	CLIENT OBLIGATIONS FOR INFORMATION AND TECHNOLOGY

          In order for PeopleSupport to provide the Services, Client agrees to provide the following to
PeopleSupport, as and when reasonably requested by PeopleSupport:

	A.  	Volume, Pattern and Handling Forecasts. Client will provide volume, pattern and handling time forecasts for each touchpoint or
channel of communication, such as voice or other media, as specified in the applicable SOW.
	 
	B.  	Forecasts for Special Promotions and Advertising. Client will make reasonable
efforts to provide PeopleSupport notice of and forecasts related to all media promotions
(including, but not limited to, radio, television, direct mail, Internet and other media) that
Client reasonably believes will have a material impact upon PeopleSupport’s ability to provide the
Services and resources in conformance with this Agreement and the applicable SOW and service levels
within a reasonable period not less than *** days before the start of the promotion, so
that PeopleSupport can make appropriate staffing or other adjustments.
	 
	C.  	Product Literature and Related Materials. Client will provide PeopleSupport with all
information, sales and product literature (including updates and/or modifications), and if
applicable, samples and any other materials related to Client’s services and/or products, which are
reasonably necessary for PeopleSupport to provide the Services. PeopleSupport may copy all such
information, sales and product literature and other materials solely for internal purposes as
necessary to provide the Services, but will treat such information as “Confidential Information”
subject to and in accordance with Section 7.
	 
	D.  	Client-Provided Technology. Client will provide any necessary hardware, software,
telecommunication systems and similar materials as specified in an SOW (collectively, the “Client
Provided Technology”), and the right for PeopleSupport to use such Client Provided Technology in
order to perform the Services, including maintenance for the Client Provided Technology; and all
training materials and any additional training reasonably required by PeopleSupport with respect to
new or revised Client Provided Technology.
	 
	   	Client will be responsible to install, maintain and repair the Client Provided Technology, and
for any changes, updates and upgrades to the Client Provided Technology. Client agrees to provide
to PeopleSupport copies of any licenses or other legal requirements applicable to PeopleSupport’s
required use of the Client Provided Technology, and PeopleSupport agrees to strictly comply with
such licenses and other legal requirements. In the event it becomes necessary for Client to
provide any additional Client Provided Technology, including increasing the scope of use of any
licensed software, Client will obtain and provide to PeopleSupport such additional Client Provided
Technology.
	 
	E.  	Information Necessary for the Performance of Services. Client will respond promptly
to all reasonable PeopleSupport requests for necessary instructions or information relating to
PeopleSupport communications with Client’s existing and prospective customers. Without limiting
the generality of the foregoing, Client agrees to provide necessary login identification and
passwords for any of Client applications required to be used by PeopleSupport, within no more than
***. In addition, Client shall provide PeopleSupport with reasonable access to any of the systems,
software and files provided by Client to PeopleSupport and/or installed at PeopleSupport’s
facilities in order to perform Services.
	 
	5.  	JOINT OBLIGATIONS OF THE PARTIES
	 
	A.  	Contact Person. Each Party will designate a single point of contact with the
authority to discuss and resolve day-to-day issues and the relations between the Parties relating

					
	 	 	 	 	 
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	   	to the Services, such as the provision of information, reports, and the Client-Provided Technology.
Such contact person may be changed upon
written notice to the other Party. Each Party shall be entitled to rely upon written and
electronic instructions and authorizations received from the other Party’s designated and
authorized representative.
	 
	B.  	Compliance with Law and Agreements. PeopleSupport will perform its obligations under
this Agreement in compliance with all applicable United States and *** laws, ordinances and
regulations, and will obtain and maintain in full force and effect, any permits, licenses,
consents, approvals and authorizations necessary for the performance of the Services and its
obligations hereunder. Client will perform its obligations under this Agreement in compliance with
all applicable United States laws, ordinances and regulations, and will obtain and maintain in full
force and effect, any permits, licenses, consents, approvals and authorizations necessary for the
performance of its obligations hereunder. To the extent that Client is responsible for the
provision of information regarding its prospective customers and/or customers, and the provision of
scripts or other instructions to be followed by PeopleSupport, Client will be responsible for
confirming that such lists and/or instructions comply with applicable law. To the extent that
either Party requires a license from or other consent of a third Party to provide the Services or
software, data, materials, or other items to the other Party, the Party providing such items shall
have and maintain any such consent, in substance and form reasonably acceptable to the other Party,
and shall provide evidence of such consent to the other Party, upon request.
	 
	C.  	Further Documents and Cooperation. Each Party will execute such other documents, and
provide such cooperation as the other Party reasonably requests, in order to give full effect to
the provisions related to this Agreement, including, but not limited to, Section 6.
	 
	D.  	Timeliness of Compliance. Any missed deadline caused by a Party’s delay in the
performance of its obligations will extend the time for performance by the other Party by the
period of such delay.
	 
	6.  	INTELLECTUAL PROPERTY RIGHTS
	 
	A.  	PeopleSupport Technology. PeopleSupport shall provide the proprietary and third
party software, hardware and materials set forth in each SOW or as otherwise necessary for
PeopleSupport to support the Services, except for the Client Provided Technology in support of the
Services (“PeopleSupport Technology”). PeopleSupport shall obtain all licenses, consents and
permits necessary for PeopleSupport to use the PeopleSupport Technology and provide the Services
and for Client to receive the Services in accordance with this Agreement and the applicable SOW.
	 
	B.  	Pre-Existing and Independently Developed Works. Each Party will retain all rights in
any software, ideas, concepts, know-how, processes, development tools, techniques or any other
proprietary material or information that it owned or developed prior to the date of this Agreement,
or acquired or developed after the date of this Agreement wholly without reference to, use or
incorporation of the intellectual property or Confidential Information (as defined in Section 7) of
the other Party.
	 
	C.  	Client’s Ownership Rights. As between PeopleSupport and Client, Client will own all
Client Provided Technology and customer data provided, generated, created and/or collected pursuant
to the performance of Services or otherwise in connection with this Agreement. During the term of
this Agreement and/or the applicable SOW, Client grants to PeopleSupport a non-exclusive license
and right to use such Client Provided Technology and customer data, solely for the performance of
Services. Subject to any third party rights or restrictions and as otherwise set forth in this
Section 6, Client will own any deliverables, materials or data that are developed specifically for
Client and identified as such pursuant to any SOW hereunder,
	 
	D.  	PeopleSupport Ownership Rights. PeopleSupport retains all right, title and interest
in and to all PeopleSupport Technology, including without limitation, software development tools,
methodologies, processes, technologies and/or algorithms, used in performing the Services or any
enhancements, extensions, modifications or derivatives thereof or related thereto.
	 
	E.  	Independently and Newly Created Intellectual Property Rights. In the course of
performing their respective obligations under this Agreement, the parties acknowledge and agree
that PeopleSupport will own any and all newly and independently created intellectual property
rights (e.g., without reference to preexisting or subsequently acquired rights of a party)
(collectively, “New IP”) or any enhancements, extensions, modifications or derivatives thereof or
related thereto and Client will have a royalty free right to use such New IP for its internal
business purpose and Client may permit access to such New IP by another service provider rendering
services to Client for such internal business purpose.
	 
	F.  	Permitted Use of Marks. Each Party warrants that it has full right, title and
interest in and to all trade names, trademarks, service marks, symbols and other proprietary marks
(“Marks”) which it authorizes the other Party to use pursuant to this Agreement or a SOW, if any,
for use related to the Services. Each Party may authorize the other Party from time to time to use
the authorizing Party’s Marks in strict accordance with its express written authorization, subject
to revocation at any time and any limitations or restrictions the Party owning the Marks may
communicate in writing to the other Party from time to time. Each Party shall use the other
Party’s Marks only for the agreed-upon purposes and to the extent and for the duration of the
permitted authorization.
	 
	G.  	Client Data. Client will have unrestricted access to and use of the
PeopleSupport-provided reporting portal to access reports specified in the applicable SOWs.
PeopleSupport will not retain any Client data in any PeopleSupport system other than information
that may be provided in electronic mail and call and email statistics. Client acknowledges and
agrees that the rights set forth in this Section 6.G shall apply only with respect to those aspects
of PeopleSupport’s business, including without limitation, data relating to Client and this
Agreement.
	 
	7.  	CONFIDENTIALITY
	 
	A.  	Confidentiality. Each Party agrees that the following will be deemed to have been
received in confidence and will be used only for purposes of this Agreement: (i) all information
communicated to it by the other and identified as confidential, whether before or after the
Effective Date, (ii) all information identified as confidential to which it has access in
connection with the Services, whether before or after the Effective Date, (iii) all Client data and
Client customer, program, business or financial information disclosed pursuant to this Agreement,
(iv) the terms of this Agreement and the Parties’ rights and obligations

					
	 	 	 	 	 
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	 	4
	 	 

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

	   	hereunder, and (v)
PeopleSupport Technology (collectively, “Confidential Information”). Each Party, including such
Party’s employees, shall keep confidential the other Party’s Confidential Information and not use
it for any purpose other than to perform its obligations under this Agreement. Each Party shall
use the same means to prevent the disclosure of and to protect the Confidential Information as it
uses to protect its own confidential information of like kind, but in no event less than reasonable
degree of care and means. The recipient Party will not disclose the Confidential Information to
any third party without the prior written consent of the disclosing Party; provided, however, that
each recipient Party may disclose and provide access to Confidential Information only to those of
the recipient Party’s attorneys, auditors, or insurers who have a need to have access to such
information in connection with their engagement on a need to know basis, provided that such persons
and entities will be bound by non-disclosure obligations equivalent to those set forth herein. In
addition, PeopleSupport may only disclose Client Confidential Information to those PeopleSupport
and authorized subcontractor employees to the extent necessary to permit them to perform the
Services in accordance with this Agreement and the applicable SOW.
	 
	B.  	Exceptions. Notwithstanding the other provisions of this Section, neither Party will
be prevented from disclosing Confidential Information to the extent such information that is at the
time of disclosure: (i) in the public domain, (ii) was lawfully disclosed to the recipient Party on
a non-confidential basis by a third party who is not bound by a confidentiality agreement with
either Party, (iii) has been disclosed with the disclosing Party’s prior written approval, (iv) is
independently developed by the recipient Party without reference to the Confidential Information
disclosed by the disclosing Party; or (iv) in response to valid legal process, whether issued by a
court or administrative or regulatory body. If Confidential Information is required to be
disclosed pursuant to a requirement of a legal process, the recipient Party required to
disclose the Confidential Information, to the extent possible, will provide the disclosing
Party with timely prior notice of such requirement and will coordinate with such other Party, at
such other Party’s expense, in an effort to limit the nature and scope of such required disclosure,
where appropriate. Upon the expiration or termination of this Agreement or any SOW for any reason,
each Party shall promptly return the Confidential Information of the other Party (and all copies
thereof), or have an officer of such Party certify in writing that the Confidential Information of
the other Party has been destroyed.
	 
	8.  	WARRANTIES; DISCLAIMER; LIMITATION OF LIABILITY
	 
	A.  	SERVICES WARRANTY. PeopleSupport warrants that it shall perform the Services: (i)
with promptness and diligence and (ii) in a professional and workmanlike manner; and (iii) in
accordance with this Agreement, the applicable SOW and associated service levels. PeopleSupport
further warrants that in the performance of the Services PeopleSupport shall use individuals with
suitable training, education, experience, competence, and English language fluency.
	 
	B.  	SOFTWARE WARRANTY. PeopleSupport represents, warrants and covenants that it is either the owner of, or
authorized to use, any and all PeopleSupport Technology. Client represents, warrants and covenants
that it is either the owner of, or authorized to use, any and all Client Technology.
	 
	C.  	DISCLAIMER OF OTHER WARRANTIES. EXCEPT AS EXPRESSLY STATED HEREIN, THE SERVICES ARE
PROVIDED “AS IS,” AND PEOPLESUPPORT DOES NOT MAKE, AND HEREBY DISCLAIMS, ANY AND ALL OTHER EXPRESS
AND ANY IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. PEOPLESUPPORT DOES NOT WARRANT THAT THE SERVICES WILL BE
UNINTERRUPTED OR ERROR FREE, OR COMPLETELY SECURE.
	 
	D.  	LIMITATION OF LIABILITY. EXCEPT AS SET FORTH IN SECTION 8(E), IN NO EVENT SHALL
EITHER PARTY BE LIABLE FOR ANY SPECIAL, INDIRECT, EXEMPLARY, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL
DAMAGES ARISING UNDER OR RELATING TO THIS AGREEMENT IN ANY WAY, INCLUDING, BUT NOT LIMITED TO, LOSS
OF DATA, LACK OF SERVICES, OR LOSS OF REVENUES OR PROFITS, EVEN IF A PARTY HAS BEEN ADVISED, KNOWS
OR SHOULD KNOW OF THE POSSIBILITY OF THE FOREGOING. EXCEPT AS SET FORTH IN SECTION 8(E), EACH
PARTY’S MAXIMUM LIABILITY TO THE OTHER PARTY ARISING UNDER OR IN RELATION TO THIS AGREEMENT FOR ANY
AND ALL CLAIMS, LOSSES OR DAMAGES, AND REGARDLESS OF THE FORM OF ACTION (I) WILL BE LIMITED TO
PROVEN, ACTUAL, OUT-OF-POCKET EXPENSES WHICH ARE REASONABLY INCURRED, AND (II) IN THE AGGREGATE
SHALL NOT EXCEED THE GREATER OF: (I) THE TOTAL FEES PAID BY CLIENT TO PEOPLESUPPORT PURSUANT TO
THIS AGREEMENT DURING THE *** MONTH PERIOD PRECEDING THE INITIAL ACT OR FAILURE GIVING RISE
TO SUCH CLAIM, OR (II) ***.
	 
	E.  	EXCEPTIONS TO LIMITATION OF LIABILITY.

	 	1.  	The limitations of liability set forth in Section 8(D) shall not apply with respect to
(i) losses occasioned by the willful misconduct or gross negligence of a Party; (ii)
amounts paid with respect to third party claims that are the subject of indemnification
under this Agreement; (iii) losses occasioned by the PeopleSupport failure to provide
Termination Assistance Services in accordance with Section 2D; or (iii) losses occasioned
by any breach of a Party’s obligations under Section 7.
	 
	 	2.  	The following shall not be considered damages ***.
	 
	 	3.  	The following shall be considered direct damages that neither Party shall assert
are indirect, incidental, collateral, consequential or special damages or lost profits to
the extent they result directly from either Party’s failure to perform in accordance with
this Agreement: (i) the
imposition, collection or payment of taxes; (ii) payments, fines, penalties or interest
imposed by a governmental body or regulatory agency for failure to comply with
requirements or deadlines; (iii) reasonable and necessary expenses incurred by Client as a
result of a material breach by PeopleSupport to procure the Services from an alternate
off-shore source, to the extent in excess of PeopleSupport’s charges under this Agreement;
(iv) reasonable and necessary expenses incurred by Client as a result of the refusal of
PeopleSupport to provide Termination Assistance Services, except as permitted under
Section 2 D and (v) service level credits assessed against PeopleSupport pursuant to any
SOW.

					
	 	 	 	 	 
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	 	5
	 	 

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

	9.  	INDEMNIFICATION
	 
	A.  	PeopleSupport Indemnification. PeopleSupport shall indemnify, defend and hold
harmless Client, including its affiliates, and its and their respective partners, members,
directors, officers, attorneys, representatives, employees, and agents, and its and their
successors and permitted assigns from any and all third party suits and claims for losses and
threatened losses, including any criminal, administrative, or investigative action or proceeding,
arising from or in connection with, or based on allegations (i) arising out of or based on
PeopleSupport’s breach of the obligations under Section 5(B); (ii) relating to the death or bodily
injury of any person caused by the tortious conduct of PeopleSupport; (iii) the damage, loss or
destruction or any real or tangible personal property caused by the tortious conduct of
PeopleSupport; or (iv) that any PeopleSupport employee or contractor is an employee of Client or
otherwise entitled to receive employment related benefits or compensation from Client; (v)
asserting the infringement of any patent, copyright, trademark, service mark, trade name, trade
secret or similar proprietary rights regarding intellectual property (or license, access or use
rights therein) provided by PeopleSupport to Client under this Agreement or any SOW.
	 
	B.  	Client Indemnification. Client agrees to indemnify, defend and hold PeopleSupport,
including its affiliates, and its and their respective shareholders, partners, members, directors,
officers, attorneys, representatives, employees, and agents, and its and their successors and
permitted assigns from any and all third party suits and claims for losses and threatened losses,
including any criminal, administrative, or investigative action or proceeding, arising from or in
connection with, or based on allegations (i) arising out of or based on the Indemnifying Party’s
breach of its obligations under Section 5(B); (ii) relating to the death or bodily injury of any
person caused by the tortious conduct of Client; (iii) the damage, loss or destruction or any real
or tangible personal property caused by the tortious conduct of Client or (iv) asserting the
infringement of any patent, copyright, trademark, service mark, trade name, trade secret or similar
proprietary rights regarding intellectual property (or license, access or use rights therein)
provided by Client to PeopleSupport under this Agreement or any SOWs.
	 
	C.  	Indemnification Procedure. Each Party’s indemnification obligation pursuant to
Section 9 will apply only to the extent that the Party seeking indemnification: (i) provides the
indemnifying Party written notice specifically detailing the claim and the underlying circumstances
promptly after receipt of notice of the commencement or threatened commencement of any civil,
criminal, administrative, or investigative action or proceeding; (ii) allows the indemnifying Party
full control of the defense of such claim and provides full cooperation to the indemnifying Party
in the defense of any such claim; and (iii) does not enter into any settlement or compromise in
respect of such claim without the indemnifying Party’s prior written consent. Failure to so notify
the indemnifying Party of a claim will not relieve the indemnifying Party of its obligations under
this Agreement except to the extent that it can demonstrate that it was prejudiced by such failure.
	 
	10.  	ADDITIONAL PROVISIONS
	 
	A.  	Insurance. Prior to the commencement of Services to be performed hereunder and throughout the Term of
this Agreement and any SOW, PeopleSupport will procure and maintain insurance policies, in such
amounts and coverages as specified in and in strict accordance with Exhibit B attached hereto.
	 
	B.  	PeopleSupport Personnel.

	 	1.  	***
	 
	 	2.  	***

	C.  	Non-Solicitation of Employees. During the term of each SOW and for a period of ***
after the date of termination of such SOW, neither Party will knowingly, directly, solicit or hire
any of the other Party’s employees who, in any manner, have worked in the provision of any of the
Services. The use of general advertisements which do not target certain employees or groups will
not be construed to violate this Section 10(C). If Client engages another provider with facilities
in the *** to perform services similar to Services, Client shall request that such provider
shall not solicit, directly or indirectly, employees or contractors of PeopleSupport.
	 
	D.  	Relationship Between the Parties. PeopleSupport is engaged hereunder solely in the
capacity as an independent contractor. In no event will either Party have the power to bind the
other Party.
	 
	E.  	Force Majeure and Other Delays. For purposes of this Agreement, a “Force Majeure”
will mean a cause outside of a Party’s reasonable control including, without limitation, acts of
God, acts of war, revolution, riots, civil commotion, acts of a public enemy, terrorism, embargo,
acts of government in its sovereign capacity, strikes, lockouts, boycotts, fire, earthquakes,
floods or other natural disasters. Except for the payment of monies when due and owing or as
otherwise set forth in this Agreement or an SOW, to the extent that a Party is unable to fulfill,
in whole or part, its obligations hereunder by reason of an event of Force Majeure, such Party will
be temporarily excused from fulfilling such obligations under the applicable SOW until the
abatement of such Force Majeure event.
	 
	   	In case of an inability to provide Services at PeopleSupport’s designated facility due to an
Event of Force Majeure which continues for ***, PeopleSupport will relocate the Client project that
is affected thereby to alternate location(s) managed by PeopleSupport at the current contractual
rate. Client understands and agrees that PeopleSupport will require ramp up time to get eReps
recruited and trained. In-place and trained staff will be ramped-up as mutually agreed upon with
the following expectation: ***
	 
	F.  	Audit Rights.

	 	1.  	Operational Audits. PeopleSupport shall, and shall cause its subcontractors to,
provide to Client (and internal and external auditors, inspectors, regulators and other
representatives that Client may designate from time to time other than an entity that derives ***
or more of its non-audit and non-consulting revenue from contact center businesses (“People Support
Competitor”)) access at reasonable hours to

					
	 	 	 	 	 
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	 	   	PeopleSupport personnel, to the facilities at or from
which Services are then being provided and to Client records and other pertinent information, all
to the extent relevant to the Services and this Agreement. Such access shall be provided for the
sole purpose of performing audits and inspections, to (i) verify the integrity of Client data, (ii)
examine the systems that process, store, support and transmit that data, (iii) examine applicable
controls and the security, disaster recovery and back-up practices and procedures; (iv) examine
PeopleSupport’s performance of the Services; (v) verify PeopleSupport’s reported performance
against the applicable service levels; (vi) examine PeopleSupport’s measurement, monitoring and
management tools; and (vii) enable Client to meet applicable legal, regulatory and contractual
requirements. PeopleSupport shall provide any assistance reasonably requested by Client or its
designee (other than a PeopleSupport Competitor) in conducting any such audit, including installing
and operating audit software, provided that such audit shall not unreasonably
interfere with the operation of PeopleSupport’s business. If an audit reveals a material
breach of this Agreement by PeopleSupport, PeopleSupport shall promptly reimburse Client for the
actual cost of any damages, fees, fines, or penalties assessed against or incurred by Client as a
result thereof. If a Client designee receiving Services under this Agreement owns a PeopleSupport
Competitor, then Client shall require that such designee maintain a strict firewall vis-à-vis such
PeopleSupport Competitor and prohibit disclosure of any PeopleSupport information to such
PeopleSupport Competitor.
	 
	 	2.  	Financial Audits. PeopleSupport shall, and shall cause its subcontractors to,
provide to Client (and internal and external auditors, inspectors, regulators and other
representatives that Client may designate from time to time) access at reasonable hours to
PeopleSupport personnel and to contract records and other pertinent information, all to the extent
relevant to the performance of PeopleSupport’s obligations under this Agreement. Such access shall
be provided for the purpose of performing audits and inspections to verify the accuracy and
completeness of PeopleSupport’s charges. PeopleSupport shall provide any assistance reasonably
requested by Client or its designee in conducting any such audit and shall make requested
personnel, records and information available during the Term at no additional charge to Client.
PeopleSupport shall promptly pay to Client the amount of any overcharge identified during such
audit up to *** months from the date of the audit. In addition, if any such audit reveals an
overcharge of more than five percent (5%) during any *** month period, PeopleSupport shall
promptly reimburse Client for the actual third party cost of such audit.
	 
	 	3.  	Audit Assistance. If a governmental body or regulatory authority exercises its right to examine or audit
Client’s or PeopleSupport’s books, records, documents or practices and procedures pursuant to such
laws, rules, regulations or contract provisions, PeopleSupport shall provide all assistance
requested by Client in responding to such audits or government requests for information and the
audited Party shall reimburse the cooperating Party for all reasonable out of pocket costs and
expenses incurred in providing such assistance.

	G.  	Dispute Resolution. If any claim, controversy or dispute of any kind or nature
whatsoever arises between the Parties in connection with this Agreement, (“Dispute”) and such
Dispute cannot be settled through negotiation, the Parties agree to attempt to settle the Dispute
through non-binding mediation under the Commercial Mediation Rules of the American Arbitration
Association upon written notice from an aggrieved Party to the other Party specifying the nature
and particulars of the Dispute. ***.
	 
	H.  	Limited Exclusivity. During the Term of this Agreement, PeopleSupport will not
provide services similar to the Services to a Client Competitor in the same city where the facility
for eReps rending Services for Client are located or using any PeopleSupport personnel that have
provided Services to Client. A “Client Competitor” is an entity that is engaged in the business of
***.
	 
	 	***  
	 
	I.  	Governing Law and Interpretation. This Agreement will be deemed accepted by
PeopleSupport in, and governed by and construed in accordance with, the laws of the State of
California without giving effect to its conflicts of law provisions. References to the term
“including” or “such as” shall be construed to mean “including but not limited to,” and shall not
be deemed limiting. In any case where consent is to be requested by a Party, such consent shall
not be unreasonably withheld or delayed.
	 
	J.  	Waivers. Failure to enforce compliance with any term or condition of this Agreement
will not constitute a waiver of such term or condition of this Agreement or the right to
subsequently enforce such term or condition in the future.
	 
	K.  	Severability. In the event that any provision of this Agreement is held or construed
be invalid by any arbitrator or court having jurisdiction over disputes related to this Agreement,
such provision will, if reasonable to do so, be restated to reflect as nearly as possible the
original intentions of the Parties in accordance with applicable law or, if not reasonable to do
so, be deemed to be excluded from this Agreement. In any event, all other provisions of this
Agreement will remain in full force and effect.
	 
	L.  	Notices. Except as specifically provided elsewhere in this Agreement, all notices
required or permitted to be given by one Party to the other under this Agreement will be in writing
and will be sufficient if made by: (i) personal delivery; (ii) a commercial or overnight delivery
service with proof of delivery; or (iii) registered or certified mail, postage prepaid, return
receipt requested, to the Parties at the respective addresses set forth above or to such other
person or address as the Party to receive the notice has designated by notice to the other Party.
Notices shall be deemed given upon receipt or refusal of delivery.
	 
	M.  	Assignment and Subcontracting.

	 	1.  	Assignment. PeopleSupport may not assign all or any part of this Agreement without
Client’s prior written consent, which consent may be withheld or denied in Client’s sole
discretion. Any attempt to assign this Agreement in contravention of this Section 10(M)(1) shall
be ineffective and is voidable by Client upon written notice.

					
	 	 	 	 	 
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	 	7
	 	 

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

	 	2.  	Subcontracting. PeopleSupport shall not subcontract any of its responsibilities to
a third party under this Agreement without Client’s prior written approval, which approval may not
be unreasonably withheld nor delayed. Prior to entering into a subcontract with a third party for
the performance of all or part of the Services, PeopleSupport shall (i) give Client reasonable
prior notice specifying the components of the Services affected, the scope of the proposed
subcontract, the identity and qualifications of the proposed subcontractor, and the reasons for
subcontracting the work in question; and (ii) obtain Client’s prior written approval of such
subcontractor. PeopleSupport shall be responsible for any failure by any subcontractor or
subcontractor personnel to perform in accordance with this Agreement or the applicable SOW, or to
comply with any duties or obligations imposed on PeopleSupport under this Agreement or the
applicable SOW, to the same extent as if such failure to perform or comply was committed by
PeopleSupport or PeopleSupport employees.

	N.  	Required Filings and Publicity. Neither Party will use publicly the other Party’s
name or refer to the other Party in any way in or with the media, including, but not limited to, in
advertising or press releases, without the other Party’s prior written consent; provided, however,
that either Party may make disclosures or filings required to comply with applicable laws,
including filings with regulatory agencies, such as the United States Securities and Exchange
Commission, or disclosures or filings required to comply with the rules of a national securities
exchange or automated quotations systems such as the National Association of Securities Dealer’s
Automated Quotations (NASDAQ).
	 
	O.  	Entire Agreement and Integration. This Agreement, and the Exhibits and SOWs hereto
constitute the entire agreement between the Parties with respect to the subject matter of this
Agreement and supersede all prior agreements, discussions, proposals, representations or
warranties, whether written or oral on this subject matter. This Agreement, including any SOWs,
may not be modified except in writing signed by the duly authorized representatives of the Parties.
References to “this Agreement” shall be construed to include applicable SOWs agreed upon by the
Parties and referencing this Agreement.
	 
	P.  	Conflicts. In the event of any conflict between the terms and conditions set forth
in this Agreement and the terms and conditions set forth in any SOW, Exhibit or other attachment
hereto, the terms and conditions set forth in such SOW, Exhibit or other attachment shall prevail
to the extent of such conflict.
	 
	Q.  	Attorneys’ Fees. The prevailing Party in any dispute arising under this Agreement
will be entitled to recover from the nonprevailing Party all reasonable attorneys’ fees and other
reasonable expenses associated with the resolution of the dispute.
	 
	R.  	Counterparts. This Agreement may be signed in multiple counterparts, each of which
will be considered an original, and all of which will be considered one and the same document.
This Agreement may be executed by facsimile signature.

					
	 	 	 	 	 
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***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

	 	 	 	 	 	 	 
	ACCEPTED BY:	 	ACCEPTED BY:
	 
	 	 	 	 	 	 
	ConsumerInfo.com, Inc. (“Client”)	 	PeopleSupport, Inc. (“PeopleSupport”)
	 
	 	 	 	 	 	 
	By:

	 	***
	 	By:
	 	/s/ Lance Rosenzweig
	

	 	 
	 	 	 	 
	Name:

	 	***
	 	Name:
	 	Lance Rosenzweig
	

	 	 
	 	 	 	 
	Title:

	 	COO
	 	Title:
	 	CEO
	

	 	 
	 	 	 	 
	Date:

	 	6-11-03
	 	Date:
	 	6/12/03
	

	 	 
	 	 	 	 

					
	 	 	 	 	 
	PEOPLESUPPORT, INC. CONFIDENTIAL
	 	9
	 	 

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

EXHIBIT A

PEOPLESUPPORT RATES

See Appendix A of SOW #1.

					
	 	 	 	 	 
	PEOPLESUPPORT, INC. CONFIDENTIAL
	 	A-1
	 	 

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

EXHIBIT B

INSURANCE

***

					
	 	 	 	 	 
	PEOPLESUPPORT, INC. CONFIDENTIAL
	 	B-1
	 	 

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

CONFIDENTIAL TREATMENT REQUESTED.

CONFIDENTIAL PORTIONS OF THIS DOCUMENT

HAVE BEEN REDACTED AND HAVE BEEN

SEPARATELY FILED WITH THE COMMISSION

Statement of Work # 1

to Master Services Agreement

between ConsumerInfo.com, Inc.

and PeopleSupport, Inc.

FOR

***

Voice and Email Response

Dated June 11, 2003

[logo]

Presented by

PEOPLESUPPORT

June 11, 2003

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

			
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Table of Contents

	 	 	 	 	 	 	 	 	 
	1.	 	Introduction	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	2.	 	Client Requirements — General Statement	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	3.	 	Solution Overview	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.1
	 	Inbound Voice Support Processes
	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.2
	 	Email Support Processes
	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.3
	 	Outbound Voice Processes
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.4
	 	Other Back-Office Processes
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.5
	 	Support Escalation Process
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.6
	 	Minimum Performance Requirements
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.7
	 	Volume Forecasting and Service Level Agreement
	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.8
	 	Adjustment to Forecasts and Ramp-Up Processes
	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.9
	 	PeopleSupport Operational Capacity Planning
	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	

	 	3.10
	 	Key Personnel
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	4.	 	Training	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	

	 	4.1
	 	Training Approach
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	

	 	4.2
	 	Ongoing Training after Live Date
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	

	 	4.3
	 	Staffing Profile and Training Timelines
	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	

	 	4.4
	 	Transition of post-Pilot Volume
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	5.	 	Quality Assurance	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	

	 	5.1
	 	Quality Assurance Review Process
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	6.	 	Technology	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	

	 	6.1
	 	Technology Architecture and Specifications
	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	

	 	6.2
	 	Voice Technology Support
	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	

	 	6.3
	 	Email Technology Support
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	

	 	6.4
	 	Data Connectivity
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	

	 	6.5
	 	Client Applications
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	

	 	6.6
	 	Reporting and Data Feed
	 	 	16	 

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

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	 	6.7
	 	Escalation of Technology issues
	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	7.	 	Security	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	

	 	7.1
	 	CLIENT SECURITY REQUIREMENTS
	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	

	 	7.2
	 	PEOPLESUPPORT SECURITY PRACTICES
	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	

	 	7.3
	 	Network Security
	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	

	 	7.4
	 	eRep Background Check
	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	

	 	7.5
	 	eRep (non) Documentation of Customer Data
	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	8.	 	Timeline, Resources and Assumption	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	

	 	8.1
	 	Client Project Team
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	

	 	8.2
	 	Assumptions
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	

	 	8.3
	 	Change Management and Change Control
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	

	 	8.4
	 	Additional Terms and Conditions Complete
Inability to Deliver Services from Current
Location
	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX A – PRICING	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX B – TECHNICAL ESCALATION PROCEDURES	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX C –VOICE AND DATA CONNECTIVITY	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX D – CONSUMERINFO.COM TOLL-FREE NUMBERS	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX E – CONSUMERINFO.COM IVR ANNOUNCEMENTS	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX F – CONSUMERINFO.COM CALL FLOW DIAGRAM	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX G – CONSUMERINFO.COM EMAIL ADDRESSES	 	 	40	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX H – EMAIL ROUTING	 	 	41	 

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

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***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

			
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1. Introduction

This Statement of Work # 1 (“SOW # 1”), dated as of May 29, 2003 describes the Services that
PeopleSupport will provide to Client. This SOW # 1 is entered into pursuant to that Master
Services Agreement between PeopleSupport, Inc. and Consumerlnfo.com, Inc. dated as of June ___, 2003
(the “Agreement”). This SOW # 1 supersedes all prior functional and technical understandings,
whether written or oral, between PeopleSupport and Client regarding the matters addressed herein.
All capitalized terms used herein and not otherwise defined herein shall have the meanings assigned
to them in the Agreement.

Overview of Services

PeopleSupport will provide inbound Voice and Email response for customer service. Email support
will be provided using PeopleSupport’s eShare system, in conjunction with other supporting systems
and applications. Voice support will be provided for Client’s customer calls routed to
PeopleSupport phone system. In addition PeopleSupport will engage in outbound calls to support
inbound voice services in accordance with this SOW # 1.

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Program Overview

Voicemail and Email Operations
	 
	 	 	 	 	 	 
	 	Operating Model

	 	 	Outsourced	 
	 	 	 	 	 	 
	 	Solutions and Services

	 	 	Inbound Voice and Email	 
	 	 	 	 	 	 
	 	PeopleSupport Support Hours

	 	 	VOICE: 6am-6pm Mon-Fri PST, Sat and Sun 8am-5pm PST	 
	 	

	 	 	EMAIL: 24X7	 
	 	 	 	 	 	 
	 	Service Level Agreements (as
further described in section 3 and
appendix a of this agreement)

	 	 	VOICE SUPPORT:	 
	 	 	 	Customer Service	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	 	 
	 	 	 	Retention	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	 	 
	 	 	 	ESCALATIONS BACK TO CLIENT	 
	 	 	 	•     ***	 
	 	 	 	 	 
	 	 	 	EMAIL SUPPORT:	 
	 	 	 	•     ***	 
	 	 	 	•     ***	 
	 	 	 	 	 	 

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

Page 4

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

			
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	 	PEOPLESUPPORT
	 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Program Overview

Voice and Email Operations
	 
	 	 	 	 	 	 
	 	Client Operating Hours

	 	 	6pm - 6pm Mon-Fri PST, Sat and Sun 8am-5pm	 
	 	 	 	 	 	 
	 	Languages Supported

	 	 	99% of contacts in English, an d1% in Spanish	 
	 	 	 	 	 	 
	 	Client Application Platforms

	 	 	Client Provided Web Based Applications:	 
	 	

	 	 	• Customer Account Management Tools:	 
	 	

	 	 	          ***	 
	 	

	 	 	          ***	 
	 	 	 	 	 	 

2. Client Requirements — General Statement

PeopleSupport shall perform the Services in accordance with and consistent with the following
Client functional, technical and operational requirements:

PeopleSupport will provide outsourced customer care and retention services to Client from the
PeopleSupport offices in ***. Once the full transition has taken place, the
Parties anticipate that PeopleSupport will service millions of Client customer call center
transactions per year. Client currently supports these customer transactions ***.

PeopleSupport will monitor Consumerlnfo.com project progress and performance via daily phone calls
with key management personnel, daily call monitoring sessions, daily and monthly reporting, weekly
meetings and monthly and/or quarterly operations reviews with senior PeopleSupport staff.
Performance requirements are being set at the levels being achieved by the current Client
operation(s). PeopleSupport will be paid ***, with the opportunity for PeopleSupport
*** by *** customer retention performance ***.

3. Solution Overview

PeopleSupport will provide voice and email support services for the Client’s Customer Care and
Product Support. PeopleSupport customer service representatives (“eReps”) will assist Client’s
customers with the following business programs:

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

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***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

			
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	 	PEOPLESUPPORT
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	Touch	 
	 	Program	 	 	Systems Used	 	 	Tasks	 	 	Points	 
	 	Customer Care and
Product Support

	 	 	Ø   ***

Ø   ***
	 	 	Ø   ***
	 	 	Ø   Inbound Voice

Ø   Email	 
	 	Retention

	 	 	Ø   ***

Ø   ***
	 	 	Ø   ***
	 	 	Ø   Inbound Voice	 
	 

3.1 Inbound Voice Support Processes

PeopleSupport will provide inbound voice support response for Client. Inbound voice support will
consist of live voice response to resolve customer service, product support and low level technical
support issues.

PeopleSupport shall provide support and perform the following inbound voice support processes:

	 	1.  	eRepÔ will utilize *** web-based CRM application.
	 
	 	2.  	eRepÔ will *** processes and tools ***, a copy of which will be
forwarded to PeopleSupport prior to signing of this SOW # 1.
	 
	 	3.  	eRepÔ will process the issue using the systems and processes taught during
training.
	 
	 	4.  	eRepÔ will interact with the customer resolving their request.
	 
	 	5.  	Once request is resolved, eRepÔ will place appropriate customer contact notes,
contact type and disposition information into the customers record in the client-provided
web based CRM application in accordance with the Client training manual.

The above processes are required for inbound Voice support. Significant changes to these
requirements will be subject to a documented and agreed upon Change Order.

3.2 Email Support Processes

PeopleSupport will provide email support for Client’s customer service. These email inquiries will
be routed from Client’s web site and free form email and consist of general customer service,
product support, and low-level technical support inquiries.

PeopleSupport shall provide support to and perform the following email support processes:

	 	1.  	Customers will email inquiries from Client’s web site.
	 
	 	2.  	Email will be routed to PeopleSupport email system in accordance with Section 6.
	 
	 	3.  	eRepÔ will ***.
	 
	 	4.  	eRepÔ will ***. eReps will ***.
	 
	 	5.  	If an appropriate *** is not available, eRepÔ will ***.
	 
	 	6.  	eRepÔ will *** using ***.
	 
	 	7.  	When eRepÔ is ***, *** eRep will deliver ***.
	 
	 	8.  	Once a *** is resolved, eRepÔ ***, excluding ***.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

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***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

			
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	 	PEOPLESUPPORT
	 

	 	9.  	***.

The above processes are required for email support. Changes to these requirements will be subject
to a documented and agreed upon Change Order.

3.3 Outbound Voice Processes

PeopleSupport eReps will perform outbound calls on Client’s behalf for the following processes:

	 	1.  	If additional information is needed to complete an inbound transaction, the eRep will
*** the customer or provide requested information in order to complete the
request. Details will be addressed in training documentation.

3.4 Other Back-Office Processes

Client and PeopleSupport may mutually agree to have PeopleSupport eReps perform other processes.
These processes will need to be mutually agreed to in writing using a Change Order that will amend
the requirements defined in this SOW # 1.

3.5 Support Escalation Process

Client acknowledges that there will be situations where PeopleSupport eReps, supervision and
management will be unable to resolve a voice or email inquiry. In such circumstances, the issue
will be assigned to the appropriate internal Client department who will resolve the issue in
accordance with established policies and procedures. A detailed Contact escalation process will be
documented in the Client provided training manual. PeopleSupport staff will be trained to handle
escalations from eReps. As a result, *** not exceed *** received ***.

3.6 Minimum Performance Requirements

PeopleSupport shall perform the Services in accordance with the following minimum performance
requirements for all programs:

	Ø	 Inbound Voice SLAs

On *** basis, PeopleSupport will *** received by PeopleSupport ***.
	 
	   	Average agent occupancy will be ***.
	 
	   	Average handle time (AHT) will be ***.
	 
	   	AHT Call Calculation: *** time plus *** time plus *** the total *** of ***.
	 
	   	Average Agent Occupancy Calculation: ***.
	 
	Ø	 Inbound Email SLAs

On a monthly basis, PeopleSupport shall process and/or respond *** for any given day
***. *** and, on average, eReps are required to complete at *** is
based on *** specified in Appendix A of this SOW # 1, provided that there are always
emails in the queue.
	 
	   	Completed emails: ***.
	 
	Ø	 Retention SLAs

On a monthly basis, PeopleSupport shall retain customers as described. PeopleSupport will:

	 	o  	***

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

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***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

			
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	 	o  	***
	 	o  	***

	 	   	Definitions:

	 	•  	***.
	 	•  	Saved ***.
	 	•  	Not Saved ***.
	 	•  	***.
	 	•  	Net Save Rate ***

	 	   	UNLESS OTHERWISE INDICATED, ALL RETENTION DATA
COLLECTION AND RETENTION REPORTING WILL BE DONE
*** ACCESS TO WHICH WILL BE PROVIDED TO
PEOPLESUPPORT.

	Ø	 PeopleSupport assumes the above requested service
level requirements are currently achieved by Client’s
internal contact center.
	 
	Ø	 As part of ramp-up, Client agrees to waive the Service
Level adherence requirements for *** days following
the initial live-date.
	 
	Ø	 PeopleSupport is not responsible for delays in meeting
the service levels arising from any Client provided
telecommunication, software applications, materials,
equipments or Client operational delays.
	 
	Ø	 Current email service level targets are based on
Client’s existing mix of email categories (e.g., Consumer
Service, Consumer Question, and Cancellation). Material
changes impacting the existing mix may impact
PeopleSupport’s ability to maintain agreed upon service
levels.
	 
	Ø	 Service Level Review Process. In the event
PeopleSupport fails to achieve any Service Level specified
in this SOW # 1 during any measurement period,
PeopleSupport and Client shall cause their respective
project managers to initially *** Client receipt
of PeopleSupport’s service level report to discuss the
identified Service Level failure(s) and the causes for such
failure(s). PeopleSupport then shall provide to Client
*** initial meeting a written report that shall
detail a remedial action plan designed to prevent
subsequent failures with respect to such Service Level(s).
*** PeopleSupport submission of such report to
Client, Client and PeopleSupport shall meet to discuss such
report and mutually agree to an appropriate action plan or
required adjustments to the Services or Service Levels.
	 
	   	In addition, Client shall indicate to PeopleSupport *** the conclusion of the foregoing
process whether Client has determined that one or more Service Level failures constitutes a
material breach of this SOW # 1 and/or the Agreement pursuant to and in accordance with
Agreement Sections 2B.1. or 2B.4. otherwise it shall be deemed waived by Client.

3.7 Volume Forecasting and Service Level Agreement

In order for PeopleSupport to properly staff the Client’s account, Client agrees to provide
PeopleSupport ***, divided into half-hour increments, of the number of Voice and Email
sessions Client will deliver to PeopleSupport for each program.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

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***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

			
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Each weekly forecast submission is considered locked ***. For example, ***.
Those weeks will be ***, which will then be ***, and so on.

PeopleSupport will develop a staffing and capacity plan that will allow the forecast to be
increased or decreased by Client *** any given week without requiring additional ramp up /
ramp down or training. PeopleSupport will staff Client team to meet the above stated Minimum
Service Requirements. Should Client fail to deliver a forecast for a given week, the last week of
the last forecast shall be extended forward one week and be considered locked.

Client must receive written confirmation of acceptance of such forecast (Support Target) from its
PeopleSupport Account Manager before the forecast is deemed accepted by PeopleSupport.
PeopleSupport shall not be obligated to meet the agreed upon performance objectives and service
levels in the event the actual volume of sessions received by PeopleSupport is more than
*** for such point of contact or program, but will use best efforts to support Client’s
resource requirements.

3.8 Adjustment to Forecasts and Ramp-Up Processes

PeopleSupport will develop a capacity plan such that the respective Support Target may be increased
or decreased by Client by up to *** for a particular week without requiring additional
ramp-up / ramp-down or training. All adjustments made to the Support Targets must be delivered to
PeopleSupport Account Manager and are not deemed accepted by PeopleSupport until the Account
Manager provides Client with written confirmation of acceptance.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

Page 9

***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

			
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In no event shall PeopleSupport be required to staff to volumes, patterns and handle time estimates
and/or service levels, which are unreasonable or cannot reasonably and/or practically be achieved
during the timeframe requested.

3.8.1 Substantial Volume Increases

If Client requires a volume increase in the number of contacts supported by PeopleSupport (i.e.,
***, a mutually agreed upon ramp up period will be planned:

	 	a)  	To facilitate the appropriate collection of human and technical resources to handle a
Substantial Volume Increase, Client must provide reasonable notice to PeopleSupport, but
*** written notice *** before the start of the Substantial Volume
Increase. The proposed Substantial Volume Increase requirements shall be reasonable under
the circumstances and the available resources and technical infrastructure.
	 
	 	b)  	PeopleSupport will present Client with a Change Order outlining a detailed capacity
ramp up plan (“Ramp up Plan”) for Client’s approval. Client must approve the capacity plan
and the terms of the Change Order before PeopleSupport commences with the ramp up. These
Change order will also include the revised Performance Objectives and Service Levels during
the ramp-up.
	 
	 	c)  	Client acknowledges and agrees that change orders would require certain ramp up
periods. During such ramp up periods, PeopleSupport will use commercially reasonable
effort to achieve service levels, if any, associated with the change orders but will not be
held responsible for achieving such service levels until the applicable ramp up period has
expired.

3.8.2 Volume Decreases

Notwithstanding Section 3.7 above, if ***, Client’s minimum financial obligation to
PeopleSupport shall continued to be as set forth on Appendix A.

3.8.3 Forecasts for Special Promotions and Advertising

Client will provide PeopleSupport with notice of and forecasts related to all media and program
promotions (including, but not limited to, radio, television, direct mail, Internet and other
media) within a reasonable amount of time before release of the promotion so that PeopleSupport can
make appropriate staffing or other adjustments. PeopleSupport shall not be obligated to meet
performance objectives in the event the actual volume of sessions received by PeopleSupport
***. However, PeopleSupport shall remain responsible for standard SLAB and performance
standards if volume is within the locked-in forecast level or any excess volume ***.

3.9 PeopleSupport Operational Capacity Planning

PeopleSupport will work closely with Client’s Work Force Management team to plan capacity, and to
develop operational plans. Based on the volume forecasts provided by Client in the 6-Week Support
Forecasts, PeopleSupport will provide Client with a weekly capacity forecast reflecting the number
of eReps required to handle the forecasted volume of contacts in accordance with its performance
objectives and service levels (“Weekly Capacity Plan”). The Weekly Capacity Plan will factor in
PeopleSupport’s analysis of actual contact volumes, historical performance, existing and new-hire
resources and special circumstances (holidays, seasonality and attrition factors).

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

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	3.10  	Key Personnel: The personnel listed below are the “key personnel’ referenced in section
10.b.1 of the master services agreement.

	 	 	 	 	 	 
	 
	 	Item	 	 	Description	 
	 	 	 	 	 	 
	 	Key Personnel (per section 10.b.1 of MSA)

	 	 	1.     Account                                        Manager

2.     Operations                                        Manager

3.     Trainer

4.     Supervisors	 
	 

4. Training

The training phase of the outsourcing program is crucial to PeopleSupport’s ability to provide
Client with quality service. This section details the PeopleSupport initial and ramp-up training
process and the on-going program updates or changes training associated with this component of the
Services.

4.1 Training Approach

Client will make available to PeopleSupport all existing relevant and applicable training and
research documentation, training materials, and the knowledge base. Client and PeopleSupport will
jointly participate in the training needs analysis process with members from both teams to identify
learning objectives and determine the scope of the training effort. This process will start within
1 week following the execution of this SOW # 1.

PeopleSupport will develop a customized training program for the Services with the following capabilities:

	 	•  	Utilize the Client trainers and facility for the Train-the-Trainer session.
	 
	 	•  	Provide instructors with extensive background in customer service/technical support, as
well as stand up classroom training experience.
	 
	 	•  	Provide basic customer service and communications training, Client product/program
training and pre-certification of agents prior to performing support for Client.
	 
	 	•  	Establish a training and QA structure that supports Client’s program requirements.
	 
	 	•  	Create a separate training environment that resembles the live Client environment,
including individual workstations equipped with Client’s applications.

Client will be responsible for ***.

4.2 Ongoing Training after Live Date

Increases in the volume of services provided and/or significant changes to Client’s
policies/procedures, products, or service offerings will require post-implementation training.
PeopleSupport will conduct at no charge a needs analysis to determine if any course development
material must be prepared, and to scope out how long the training should take so that PeopleSupport
can appropriately schedule the training. PeopleSupport will recommend training updates when deemed
necessary to provide the highest level of quality. Client must provide PeopleSupport with all
existing requested and relevant ongoing

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

SOW #1

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training materials a minimum
of *** business days in
advance of the training date. PeopleSupport will provide all new hire training orientation and
Client will be responsible for all additional training costs.

Reasons for needing post-implementation training include, but are not limited to the following:

	•  	New delivery mechanisms
	•  	New product/service
introductions

	•  	System changes
	•  	Policy changes

	•  	Procedure changes
	•  	Changes to support provided

Client may request PeopleSupport to provide additional training on updated material and other newly
introduced Client system. Any training provided to Client for this purpose is subject to the
training rates listed in Appendix A of this SOW # 1. Client will be responsible for ***
for *** activity.

PeopleSupport will be responsible for any training costs or fees caused by attrition not as a
result of a planned ramp down.

4.3 Staffing Profile and Training Timelines

	 	•  	College education.
	 	•  	Strong desire to work in a call center environment.
	 	•  	Strong verbal communication skills.
	 	•  	Strong listening, analytical, communication, and organization skills.
	 	•  	Must be a team player and have the ability to work well in a team environment.
	 	•  	Professional, courteous, informative and efficient.
	 	•  	Exemplary written skills including correct spelling, grammar and punctuation.
	 	•  	Detail-oriented.
	 	•  	Proactive.
	 	•  	Able to deal with angry, irate or abusive customers.
	 	•  	Ability to conform to FCRA regulations.
	 	•  	Ability to remain current on internal work processes and procedures.
	 	•  	Sales (retention skills).
	 	•  	High degree of business and personal ethics.
	 	•  	Working knowledge of Windows and web-based application experience.

The PeopleSupport eReps staffed on Client’s account will possess general product support, sales
(retention) and customer service skills.

Implementation timelines may be reassessed or revised if the scope of the project changes after
Client and PeopleSupport mutually agree upon the learning objectives and training plan and/or if
the Client deliverable timelines are not met.

Here is a proposed timeline for the training dates and program ramp-up phases:

***

Based on Client’s requirements (initial volume and turnaround SLA), PeopleSupport will initially
train approximately ***. PeopleSupport will utilize the following operational ratios in
support of Client’s program:

***

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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During Phase 1, the current customer service *** deployed. ***, and
access to the application will be provided ***. ***, Client will implement and
provide a new *** used by PeopleSupport eReps. PeopleSupport agrees to provide no
***.

4.4 Transition of post-Pilot Volume

The Parties currently anticipate *** will be transitioned *** after the pilot
launch, *** as described in sections *** of this SOW # 1.

5. Quality Assurance

PeopleSupport will provide a comprehensive quality management and assurance process to support
and continually improve the quantity, speed and effectiveness of the Services, including but not
limited to the following components:

	•  	A custom Quality Assurance (QA) program designed for the Client’s program. Program will be in place and will commence upon
pilot launch.
	 
	•  	Program may be modified at Client’s discretion.
	 
	•  	A dedicated QA team who together with an eRep’s supervisor will conduct QA monitoring.
	 
	•  	Weekly voice and email coaching calibrations between PeopleSupport QA/Operations Team and the Client.
	 
	•  	The frequency of monitoring will be commensurate with individual eRep performance scores.
	 
	•  	Development of action plan for agents/teams that fall below the Client QA standard.
	 
	•  	A “Best Practices” Training manual to be developed
and rolled out to all eReps within *** days of pilot launch.
	 
	•  	A program and eRepÔ score card providing metrics and performance against goals
	 
	•  	Monitoring of contact type/disposition and account notes compliance across the program

PeopleSupport utilizes and maintains an in-house quality assurance manual. The quality assurance
manual is used to document internal and custom client processes and procedures. PeopleSupport and
Client will work together to regularly update the QA manual based on the close loop feedback
mechanism and through the Calibration Sessions. ***. Quality goals will be established
within *** business days after Live Date of any new program and reviewed quarterly. Both
Parties will mutually agree to maintain a quality monitoring system.

5.1 Quality Assurance Review Process

Quality Assurance reviewing will be conducted by the PeopleSupport QA department and the Operation
Supervisors or Operation Shift Lead. Each month the QA Analyst will have a target number of
sessions to complete. The Analyst may conduct a review through the use of email transcripts or
voice recorded sessions.

During an email review session, *** up using PeopleSupport’s data warehouse and for the
voice QA review session, the eRep’s voice session is either ***. Sessions are analyzed
and scored by QA Analyst on the QA Score Sheet. After this process, the QA Analyst meets with the
eRep to deliver targeted feedback on his/her performance and provides coaching, if necessary. QA
Score Sheet results detailing individual and team performance are reported to the Supervisors in
the weekly team reports. The detailed individual and team performance QA sheets and trending
analysis will be provided to Client on a weekly basis.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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In addition, Operation Supervisors review a sample of sessions on a weekly basis. This review
process, is similar to the QA process and is documented on the same score sheet. The feedback is
given to the
eRep either immediately or during a later review session. The Supervisor provides positive
feedback or any necessary coaching. If remedial action is required, the Production Supervisor may
recommend and coordinate implementation of coaching from a PeopleSupport Subject Matter Expert,
listening to other eReps during sessions, or providing additional focused training.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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6. Technology

6.1 Technology Architecture and Specifications

This section outlines the technical requirements for the integration of systems and technologies in
support of Client’s operation at PeopleSupport’s environment as required for PeopleSupport
provision of the Services.

See Appendix C for a diagram illustrating the agreed voice and data connectivity architecture
between Client and PeopleSupport facilities.

6.2 Voice Technology Support

***.

Calls will be routed from the
PeopleSupport Los Angeles PBX to the PeopleSupport *** PBX
operations centers using PeopleSupport’s network.

PeopleSupport provides the
routing and delivery of all calls to the *** center utilizing our
dedicated private and ***.

Call Routing

PeopleSupport will provide and support the following VDNs and routing requirements to support the
Client:

See Appendix D for list of toll-free numbers used by Client Consumer Direct.

***.

***.

For calls that are routed directly to PeopleSupport from Client’s *** of recording time
for each VDN. ***. Any changes to these recordings will be subject to a documented
Change Order.

***.

See Appendix E for list of Consumerlnfo.com Announcements and Appendix F for Consumerlnfo.com call
flow diagram.

***.

***.

Real Time Call Monitoring

PeopleSupport *** and call monitoring *** for all of its ***.
*** monitoring *** can be *** and from *** for prior
*** with ***. Client will be provided with live call monitoring capability by
dialing into PeopleSupport’s PBXs.

*** and *** volumes *** be *** portal *** application.
Client will be able to retrieve hourly call volume statistics from PeopleSupport’s Intellicenter
Analytics portal. In addition, *** access *** to observe ***.
*** will be provided with *** application. *** portal is the
*** activity for ***.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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6.3 Email Technology Support

PeopleSupport will provide support for Client’s email by using ***. PeopleSupport shall
provide support for the following Client mailboxes:

Upon ***, all *** will be *** to ***.

It will be *** to *** these *** to a designated ***.
*** will *** listed above. Any *** may *** a *** and
***. *** will also *** to be *** for ***.

PeopleSupport shall provide support to Client using a dedicated mail server and a ***.
*** and *** shall have *** that is also *** for ***.

*** will *** all *** for a *** of *** less
*** of the ***.

*** will *** only to the *** from which the *** was
***. In other words, *** be *** to *** to *** and
*** be *** to *** the ***.

See Appendix G for a list of all ConsumerInfo.com email addresses.

*** shall *** provide *** of ***. In addition, ***
shall *** beyond *** if *** by the ***. *** will
*** to ***, and ***. *** will *** with ***
and *** to *** and run the ***. It shall *** to ***
on ***.

*** will *** to be used ***. *** will not have any
*** beyond ***.

See Appendix H for email system architecture diagram and routing.

6.4 Data Connectivity

***.

6.5 Client Applications

PeopleSupport utilizes the following applications supplied by Client to provide customer service
for Client’s customers:

1. ***.

2. ***.

6.6 Reporting and Data Feed

PeopleSupport will provide *** secure web site containing the Intellicenter Analytics
portal. Client may access all of its reports for its account through the Intellicenter. All
reports are ***. If Client wishes to have reports generated on information not included
in the PeopleSupport standard reporting package, PeopleSupport can provide custom reporting. The
requirements, cost, and time frame required for development will be determined by the
Implementation Project Manager and will be submitted to Client in writing for approval prior to
commencement of development.

Information available on the Client Portal will be maintained on the Portal for the following
periods of time: ***. It is *** to *** and *** such
*** for ***. For a ***, *** will ***.

Standard Reporting Package Includes all reports as described and in accordance with the
PeopleSupport Report Dictionary.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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In addition to standard PeopleSupport reports available in the Intellicenter portal, Client would
like to have the following custom reports for any program requiring hourly pricing:

1. *** report (*** and ***)

2. *** report (*** and ***)

3. *** report (***)

6.7 Escalation of Technology issues

PeopleSupport and Client agree to follow the Technical Escalation Procedures attached hereto as
Appendix B for any technical issues that may arise affecting Client’s customer service operations.

7. Security

7.1 CLIENT SECURITY REQUIREMENTS

A. Security

PeopleSupport will use *** comply with the following: (a) use current security to protect the
PeopleSupport telecommunications system and any computer system or network device that
PeopleSupport uses to provide ***.

B. Intrusion Detection

PeopleSupport will use commercially reasonable efforts to use and follow the following intrusion
detection services and procedures: (a) provide intrusion detection services to detect unauthorized
access to or unauthorized activity on the PeopleSupport telecommunications system as well as
networks, computer systems and network devices associated with the use of and access to the
Client’s call management systems and databases. PeopleSupport will ensure that all intrusion
detection measures and systems are maintained and functional on a *** basis. Intrusion detection services shall include, at minimum, network-based intrusion detection
and active monitoring of appropriate computer system access logs and (b) notify Client as soon as
reasonably possible of any detected, potential or suspected intrusions in violation of this
subsection B.

C. Virus Protection

PeopleSupport will use commercially reasonable efforts to use and follow the following computer
virus detection/scanning services and procedures: (a) employ, implement and maintain the then
current commercially available computer virus detection/scanning program’ (including, without
limitation, a feature to prevent the spread of computer viruses between parties which access or
exchange data or files through network connectivity) prior to sending any data, files or other
material to Client and/or accessing or submitting the same to Client’s call management systems
(singularly or collectively “Data Sending”) and, upon detecting an actual, potential or suspected
computer virus, notify Client and according to agreed upon escalation procedure in Appendix B cease
Data Sending and shall not resume the same until the computer virus has been eliminated or
contained to the satisfaction of Client, and (b) install and use such computer virus
detection/scanning on all Data Sending mechanisms as well as at any other points reasonably
requested by Client.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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D. Access Control

PeopleSupport will use commercially reasonable efforts to use and follow the following access
control services and procedures: (a) implement measures to restrict electronic access to Client’s
call management systems to only authorized personnel; that are subject to nondisclosure agreements
for the protection of Client information (b) ensure that all eReps and other PeopleSupport
personnel who access or submit material to Client’s call management systems are uniquely identified
to and authenticated by the PeopleSupport hosted systems and Client’s call management systems
(PeopleSupport shall not use any form of generic or shared user identifier); (c) enforce the
principle of “least privilege,” namely, that authorized personnel only have the level of access to
Client’s call management systems required to perform their job functions in providing services to
Client; (d) in addition to any application, database or operating system level access controls,
encrypt all data identified by Client as “sensitive” or “confidential,” using strong, industry
standard encryption technology, e.g., 3-DES or Blowfish (all encryption mechanisms employed by
PeopleSupport must be approved in advance, in writing, by Client); (e) restrict access to all
Client’s customers’ or providers’ data, personally identifiable information, and other data
identified by Client as “sensitive” or “confidential” stored on backup media, in hardcopy form or
in any other format to only those employees who require such access to accomplish their job
functions in performing the Services and store such data in a physically secure location; (f)
remove all Client data and data identified as “sensitive” or “confidential” from any media, whether
magnetic, optical or any other form, before disposing of such media (By way of example only, and
without limitation, an acceptable form of data removal for magnetic media would be degaussing.);
and (g) Unless receiving prior written permission, PeopleSupport will enforce a “paper destruction”
rule in the Consumer Direct contact center. Sensitive and private customer information will be
destroyed immediately after there is no longer need for that information, i.e. at the end of the
customer interaction.

E. Data Integrity

PeopleSupport will use commercially reasonable efforts to provide the following data communication
security services: (a) safeguard the confidentiality and integrity of all Client or user data being
transmitted over any form of data network; (b) implement and maintain strong, industry standard
encryption techniques for all cases in which Client’s data identified as “sensitive” or
“confidential” are transmitted over any data network (for example, SSL for Web browser sessions, or
PGP file encryption for bulk data transfers); (c) for all cases in which PeopleSupport shall
require administrator, root or super-user access to Client’s call management systems and databases
from some other system, perform such access via an encrypted session such as SSH; (d) not allow
network access from any party other than authorized employees of PeopleSupport, Client and third
parties designated by Client by any means except via the public Internet.

F. Notice and Logs

PeopleSupport shall report actual or potential security violations or incidents that impact Client
to Client ***.

G. Client Security Requirements

The service requirements, functions, security features and other requirements set forth in
Subsections A. through F. above, inclusive, shall be referred to singularly or collectively as
the “Client Security Requirements.”

7.2 PEOPLESUPPORT SECURITY PRACTICES

A. PeopleSupport shall disclose to Client PeopleSupport’s physical, personnel, communications, data
and operational and security policies, procedures and methodologies and all hardware, software,
telecommunications and other technology used to implement such policies, procedures and
methodologies, including, without limitation, those related to network firewalls, access control,
system

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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administration and maintenance, intrusion detection, virus detection and eradication, data
encryption, data backup, system restoration, redundant systems, backup power and disaster recovery
used by PeopleSupport to meet the Client Security Requirements (singularly or collectively,
“PeopleSupport Security Practices”).

B. To the extent required, PeopleSupport *** in its PeopleSupport Security Practices to meet the
Client Security Requirements. During such period, Client may conduct a review and audit of
PeopleSupport’s Security Practices. At the conclusion of such audit (“Security Audit Completion”),
Client may advise PeopleSupport of suggested modifications or additions to its PeopleSupport
Security Practices in order to comply with the Client Security Requirements. PeopleSupport agrees
that beginning upon the Security Audit Completion it will use commercially reasonable efforts to
comply with the Client Security Requirements. In addition, PeopleSupport agrees to work with
Client to implement acceptable recommendations that Client makes with respect to the PeopleSupport
Security Practices. In the event the Parties cannot agree upon appropriate ***.

C. *** normal business hours so as not to materially effect PeopleSupport’s operation of its
business, to determine PeopleSupport’s state of compliance with respect to obligations set forth in
this Section.

7.3 Network Security

	Ø	 ***
	Ø	 ***
	Ø	 ***
	Ø	 ***
	Ø	 ***
	Ø	 PeopleSupport will provide advance notice, in writing,
of any desire to relocate Client’s contact service
operations to a new or different facility(s). Any services
rendered in any of the outsourcer facility other than the
initially agreed upon Primary Facility, must meet the
standards of performance and competency specified herein,
with no degradation, starting at the time the operations to
other facilities, including but not limited to installation
of the necessary telecommunications facilities.

7.4 eRep Background Check

***. Client must approve any individual that has identified issues. Upon hiring, each
PeopleSupport eRep signs proprietary information, nondisclosure and inventions agreements.

***.

7.5 eRep (non) Documentation of Customer Data

In general, eReps should not need to write down customer information and should be discouraged from
doing so; however, in some instances it may be necessary. eReps must not have access to paper and
writing implement at their station, rather eReps should utilize an erasable “white-board type”
documentation system.

8. Timeline, Resources and Assumption

*** # 1 and the Agreement, PeopleSupport will prepare and deliver to Client a project plan
(the “Project Plan”) that contains the critical path dates that each party must meet in order for
PeopleSupport to adhere to the implementation deadlines. PeopleSupport and Client will mutually
agree upon the Live Date set forth in the Project Plan. Client will make reasonable efforts to
cooperate and work with PeopleSupport to deliver any Client dependant materials delineated in the
agreed upon Project Plan. The following timelines will be subject to Client meeting all milestone
obligations.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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***

8.1 Client Project Team

In support of Client’s program, PeopleSupport will conduct conference calls and request information
from a Client-appointed single point of contact and other Client personnel. Client agrees to:

	 	•  	Make appropriate Client personnel available to PeopleSupport on a timely basis and
upon reasonable request, including a single point of contact with authority to make
decisions, discuss and resolve day-to-day issues, to assist in completing deliverables
as set forth in the mutually agreed Project Plan and for coordinating additional
resources and sign-off as required.
	 
	 	•  	Client will assign a technical resource to the project to oversee the connectivity,
application access and voice/data network integration projects.

Client and PeopleSupport personnel will accept responsibility for their assigned tasks and will
complete them within the specified schedule. Any delays caused by the unavailability of Client
resources or completion of requests may adversely affect the project schedule, and PeopleSupport’s
adherence to Service Levels and Performance Objectives. PeopleSupport’s failure to perform its
responsibilities or obligations under this SOW or to meet the service levels shall be excused if
and to the extent such PeopleSupport non-performance is caused by Client or its employees and/or
subcontractors (excluding PeopleSupport and its subcontractors) wrongful action or breach of its
obligations under this SOW, but only if (i) PeopleSupport promptly notifies Client of such wrongful
action or breach and its inability to perform under such circumstances, (ii) PeopleSupport provides
Client with a reasonable opportunity to correct such wrongful action or breach and thereby avoid
such PeopleSupport non-performance, and (iii) PeopleSupport uses commercially reasonable efforts to
perform notwithstanding Client’s wrongful action or material breach.

8.2 Assumptions

	 	•  	*** will *** the *** to *** in ***.
	 	•  	*** will be *** for all ***.
	 	•  	*** will be *** for the *** to ***.
	 	•  	*** will *** on the ***.
	 	•  	*** will *** and *** at ***.
	 	•  	*** will *** the *** to *** the ***.
	 	•  	*** and *** will *** and ***, *** will *** with *** at ***.
	 	•  	*** will be *** for *** and *** with *** for *** to ***.

8.3 Change Management and Change Control

PeopleSupport and Client recognize that the dynamic nature of Client’s business model may
necessitate that material changes be made to processes outlined herein. Both Parties agree that
all changes shall follow the PeopleSupport Change order procedure and may be subject to applicable
fees.

This SOW # 1 may be signed in counterparts, which together shall constitute original one document.
This SOW # 1 may be signed via facsimile signatures.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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8.4 Additional Terms and Conditions Complete Inability to Deliver Services from Current Location

*** to provide the *** will *** of the *** to *** by *** at the ***. *** and *** that *** will ***
time to ***. *** upon with the *** within ***of then have been ***. *** to *** to *** in *** in
*** to *** of *** as of the *** upon *** and *** upon *** to ***.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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IN WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute and
meet the deliverables outlined in this SOW # 1.

	 	 	 
	***

	 	
 
	 

Signature	 	 
	 

Print Name	 	 
	 

Title	 	 
	 

Date	 	 
	 	 	 
	***

	 	 
	 	 	 
	***

Signature	 	 
	***

Print Name	 	 
	 

Title	 	 
	 

Date	 	 

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Appendix A — Pricing

***

 

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ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Appendix B — Technical Escalation Procedures

Primary Technical ***

*** have provided the following *** that are *** technical *** and escalations:

Client Technical Escalation Information

***

NOTE: Name of mailbox subject to change

PeopleSupport Technical Escalation Information

***

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Purpose and Scope

This document serves as the standard PeopleSupport Client Escalation Procedure. This procedure
documents both Client and PeopleSupport responsibilities with regards to notification, ongoing
communication and correction of problems arising from an outage in services caused by systems and
internal operational elements under the control of PeopleSupport or caused by external elements
outside of the direct control of PeopleSupport.

Policies and procedures for system backup and recovery are stated in the PeopleSupport Backup and
Offsite Storage Policies document.

Event Notification

PeopleSupport shall provide initial notice to a designated Client representative by telephone,
email, pager or comparable notification service *** becoming aware of an event that has caused or
may cause an unscheduled outage or security breach problem. Client must provide a valid pager
number, fax number, voice mail or email address to PeopleSupport Helpdesk for this purpose.

Client is solely responsible for providing accurate contact information for Client’s designated
point of contact. In the event Client first becomes aware of such outage or security breach event,
Client shall promptly provide initial notice to PeopleSupport via the assigned PeopleSupport
Helpdesk Number provided to Client. In the event of critical outages, status reports about the
event will continue on the hour until either the event has been resolved or both PeopleSupport and
Client have determined a course of action that does not require continued notification.

Client Technical Support

PeopleSupport will provide 7x24 customer service in support of Client’s customer service solution
via email, voice and voice mail for the purpose of these Client Escalation Procedures. The
customer service center can be used to log problem reports or request assistance with system usage.
Details of PeopleSupport and Client responsibility for the applications and services are outlined
in the SOW.

Monitoring Services

Monitoring Services refer to the ability of PeopleSupport to observe the performance and
availability of system, application and network components of the customer service solution in
real-time and identifying problems with such components that indicate an outage of services.
PeopleSupport will perform 7x24 system-level monitoring, including polling of the hardware,
operating system and applications in order to detect abnormal system conditions. Key system
metrics monitored by PeopleSupport include:

	 	•  	Hardware malfunctions
	 	•  	Server uptime
	 	•  	File System and Space utilization
	 	•  	CPU utilization
	 	•  	Memory utilization
	 	•  	Application Service availability
	 	•  	Wide-Area network uptime
	 	•  	Intrusion Detection and logging

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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For equipment directly under the control of PeopleSupport, PeopleSupport utilizes hardware sparing
and redundant equipment whenever possible to address malfunctioning equipment outages.

Problem Categories and Priorities

PeopleSupport has established a standard problem management procedure to identify, categorize and
track problems with the operational and hosted solutions under its direct control. Problems are
categorized and prioritized by order of importance to our Clients. PeopleSupport assigns a case
number to the problem when a client initiates a problem report by notifying the PeopleSupport
Helpdesk.

The PeopleSupport Helpdesk can be reached at numbers listed at the beginning of this document.

There are four categories of problems ranging from Emergency (Priority 1) to Assistance (Priority
4.)

Priority 1 — Emergency: ***:

*** 

Priority 2 — Critical: ***:

***

Priority 3 — Non-Critical: ***.

Priority 4 — Assistance: ***.

Problem Resolution Response Times

The following table indicates PeopleSupport’s problem resolution goals. These resolution goals
apply to all problems related to systems and services under the direct control of PeopleSupport.

Problem resolution or workaround time commences after the problem has been identified and
reproduced by PeopleSupport. A Call Back procedure is followed by PeopleSupport to notify clients
affected by priority 1-3 problems. Clients must provide PeopleSupport Helpdesk with up to date
contact information and a preferred method of communication for all notifications. Client’s
primary contact shall have the authority to make decisions on behalf of Client to facilitate a
rapid resolution of all problems.

***

In priority 1 and priority 2 cases that are as a result of PeopleSupport system problems,
PeopleSupport shall work around the clock until a resolution or workaround is reached.

All priority 1 problems are escalated internally as follows:

***

In priority 3 cases, PeopleSupport shall use commercially reasonable efforts to notify the Client
and resolve problems as quickly as is reasonably practical. Resolution to problems with priority 4
depends on the scope and nature of the request (typically a programming or enhancement request) and
cannot be accurately forecasted. If a problem cannot be resolved permanently, a temporary
resolution will be implemented to the extent possible based on mutual agreement with Client.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Escalation and Problem Resolution Procedures

	Ø	 If the Source of the Problem is External to PeopleSupport

	 	   	When there is a site and/or system problem that is external to or otherwise not the
responsibility of PeopleSupport (such as unavailability of the Client Web Site or
back-end application system or tools):

	 	A)  	Client shall notify the PeopleSupport Helpdesk within one hour of
noticing the outage.
	 	B)  	PeopleSupport will “troubleshoot” the problem as appropriate to
determine the impact of the problem to systems and networks under the control
of PeopleSupport. If the problem is as a result of systems and facilities
outside the control of PeopleSupport, Client shall assign a designated resource
to PeopleSupport to address the problem within a mutually agreed upon
timeframe.
	 	C)  	PeopleSupport shall contact Client’s designated support staff to
inquire about the problem periodically until the problem is resolved. Client’s
designated support entity must be listed at the beginning of this document.
	 	D)  	Client’s designated support staff shall respond to PeopleSupport
inquiries with timely updates in 60-minute intervals until the problem is
resolved.
	 	E)  	In the event of a technical problem with Client’s call tracking system,
email management system, or any Client system directly used by PeopleSupport
eReps, problems may have a direct impact on PeopleSupport’s ability to meet the
agreed upon service levels. In such cases, PeopleSupport reserves the right to
waive the agreed upon Service Level measures or customer care as long as the
problem remains unresolved by the Client.

	Ø	 If the Source of the Problem is Internal to PeopleSupport

When there is a system or operational problem that is internal to PeopleSupport (such as
unavailability of the voice systems, applications or network access):

	 	A)  	Client shall contact the PeopleSupport Helpdesk to report an exact
detail of the problem as soon as Client notices the problem. A PeopleSupport
Helpdesk Analyst will receive the call and open a ticket for the problem under
an assigned priority. In the event that an Analyst is not reachable, a voice
mail or Page may be left for the on-call support analyst at PeopleSupport. The
Helpdesk shall return all voice mails and pages within 30 minutes.
	 	B)  	PeopleSupport Analysts will “troubleshoot” the problem as appropriate
to determine if the problem is related to systems and networks under the
control of PeopleSupport. If the problem is as a result of systems and
facilities under the control of PeopleSupport, a designated resource from
PeopleSupport will be assigned to address the problem.
	 	C)  	PeopleSupport Analyst shall notify Client’s designated point of contact
within one hour of noticing an outage.
	 	D)  	PeopleSupport Analyst shall provide Client with updates in 60-minute
intervals until the problem is resolved.
	 	E)  	In the event of a major catastrophic impact to Client’s operation at
PeopleSupport caused by systems under PeopleSupport’s direct control,
PeopleSupport shall exercise the Client’s agreed to Disaster Recovery plan to
resolve the problem.

Scheduled Maintenance Policy

To maintain and enhance PeopleSupport’s hosted applications, network infrastructure and
communication systems, we have established a ***. The time periods below represent a designated

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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window of time that scheduled and routine maintenance activity may be planned without prior notice.
PeopleSupport will attempt to minimize the impact of the scheduled maintenances as much as
possible without impacting system’s future uptime and availability. Though the systems might not
become unavailable *** during the scheduled times listed below, clients should assume and plan for
momentary outages during these timeframes accordingly.

***

In addition to regularly scheduled maintenance, PeopleSupport may at times perform emergency
maintenance. Whenever possible, PeopleSupport shall make commercially reasonable efforts to
provide Client *** notification of all scheduled maintenance procedures arising from emergencies.

Modification of Escalation Procedures

Client acknowledges that from time to time, PeopleSupport may be required to modify terms and
conditions of this Client Escalation Procedure as required by third-party vendors. PeopleSupport
shall notify Client of any such Required Modification. Client shall
have *** business days to
review such modification and notify PeopleSupport of its acceptance or rejection of same. Failure
to affirmatively reject shall be deemed an acceptance under this section.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Appendix C — Voice And Data Connectivity

***

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Appendix D — ConsumerIfo.com toll-free numbers

***

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Appendix E — ConsumerInfo.com IVR Announcements

***

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Appendix F — ConsumerInfo.Com Call Flow Diagram

***

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Appendix G — ConsumerInfo.Com Email Addresses

***

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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Appendix H — Email routing

***:

***

	1.  	*** will submit ***.
	 
	2.  	*** will then *** across ***.
	 
	3.  	*** will be *** from the *** in the *** hosted ***. *** consists of an *** and ***. *** to
the *** through *** on their ***.
	 
	4.  	*** will be sent from *** to the ***. *** will then *** through the ***.
	 
	5.  	***.

 

This document contains unpublished, confidential and proprietary information of PeopleSupport, Inc. and
ConsumerInfo.com, Inc. No disclosure, duplication or use of any portion of the contents of these materials,
for any purpose, may be made without the prior express written consent of the disclosing party.

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***CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]