Document:

ex10-95

EXHIBIT 10.95

APPLICATION AND BUSINESS SERVICES AGREEMENT 

     This APPLICATION AND BUSINESS SERVICES AGREEMENT (“Agreement”) is entered into by and between Maxicare Health Plans, Inc. (“Client”) and The TriZetto Group, Inc., a Delaware corporation, and
its subsidiaries and affiliates (collectively, “TriZetto”), and is effective as of the 1st day of September 2000.

     Whereas, TriZetto offers certain connectivity, assessment and transformation services and is an Application Services Provider, which delivers pre-integrated and hosted best of class packaged software
applications, transaction services and other management services to clients; and 

     Whereas, Client wishes to contract with TriZetto to provide certain services.

       Now therefore, in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows:

1.       TriZetto Services. 
            
a)   Services.   TriZetto shall provide the "Services" and “Supported Applications” described in Exhibit A of this Agreement at the “Service
Levels” set forth in Exhibit B. The Services, Supported Applications and Service Levels may be modified only by mutual written agreement of TriZetto and Client. Material changes, individually or in the aggregate, or
additions to work performed pursuant to Exhibit A or Exhibit B may require changes in the resources provided by TriZetto and are subject to the change control provisions set forth in 
Exhibit C. TriZetto will provide application and operation support services to Client only for the software application programs (the “Supported
 Applications”) specifically identified in Exhibit A. 

            
b)   License.   In accordance with this Agreement, TriZetto hereby provides Client a restricted, non-transferable (except as provided herein) and nonexclusive license to use the Supported Applications for the
purpose of supporting the internal operations of Client’s business. Client may use the Supported Applications only to process Client’s own data and that of Client’s patients, members, medical groups, providers, and wholly-owned subsidiaries
and affiliates. Client may not use the Supported Applications in a resale capacity, to process and/or analyze the data of a third party as a service bureau, or on any hardware and with any operating system or applications software other than as approved
in advance and in writing by
TriZetto. Notwithstanding anything contained herein to the contrary, Client may sublicense any or all of its rights in and to the Supported Applications to any of its wholly-owned subsidiaries or its affiliates; provided, however, that such sublicensee
agrees in writing to be bound by the terms of this Agreement. For purposes of this Agreement, the term affiliates shall mean, a person or entity that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under
common control with, Client. 

            
c)   Connectivity Solutions.  
Client will utilize the required equipment, including but not limited to, desktops, network, servers, and printers, as well as application software and operating system software (collectively, the “Required Equipment”)
which are identified in
Exhibit A to this Agreement and based on
TriZetto’s assessment of Client’s infrastructure. Client acknowledges and agrees that the Service Levels are predicated and conditioned upon Client’s use of the
required Equipment. Except as otherwise set forth in Exhibit A, Client shall have sole responsibility for maintaining the Required Equipment. 

            
d)   Other Services.   From time to time, TriZetto may, at Client’s request, perform consulting and other services outside the scope of this Agreement (the “Other Services”). The terms and
conditions under which Other Services are provided shall be governed by the change control provisions set forth in Exhibit C or pursuant to a separate written agreement between Client and
TriZetto.

2.       Invoicing
and Payment Terms. 
            
a)   Invoices.  
TriZetto will invoice Client monthly in advance for the Services and Supported Applications, to be provided to Client during the upcoming month at the applicable rates and for the amounts set forth in Exhibit E
. TriZetto shall begin invoicing for such services when TriZetto makes the Services available for use or as otherwise provided in Exhibit E. 

            
b)   Prior Month Adjustment.  
Within fifteen (15) business days after the end of each month, Client shall deliver to TriZetto a statement indicating the number of members enrolled in Client’s health plan. Upon receipt of such reconciliation, the following
month’s invoice shall include a billing adjustment which reflects the retroactive increase or decrease in the number of members for the prior month; provided, however, that TriZetto shall not be required to make adjustments to reflect increases or
decreases that occurred more than four months prior to the invoice date. 

            
c)   Payment Terms; Interest.  
Client will pay TriZetto all undisputed fees within 30 days of the receipt by Client of the invoice. If Client fails to pay undisputed amount of any invoice within 30 days after receipt by Client, TriZetto may charge interest of
the lesser of 1.5% or the maximum permissible rate per month on any outstanding undisputed balance and, upon Client’s failure to pay undisputed outstanding balances following the due date and subsequently within
30 days notice from
TriZetto, TriZetto may suspend Services and Supported Applications until such outstanding balances are paid, unless the parties have extended the payment due date in writing. Any disputes regarding fees shall be resolved in accordance with Section 9. 

            
d)   Taxes.  
Client will be responsible for the payment of sales and use taxes related to the delivery of the Services or Supported Applications. TriZetto will be responsible for the payment of all taxes assessed against TriZetto or any of its
subsidiaries, affiliates or properties, or based on TriZetto’s revenues, income or property. If TriZetto is required to pay any such taxes directly, Client shall, upon receipt of TriZetto’s invoice, reimburse TriZetto for any amount that
TriZetto has  

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 paid. TriZetto shall, to the extent reasonably possible, deliver any products or services contemplated hereby through electronic media or other means requested by Client. 

               
e)   Insurance Coverage. 

                   
i)   Client Insurance.   Client shall obtain and maintain, at Client’s expense, commercially reasonable liability insurance and insurance against loss or damage to TriZetto’
s property located on Client’s premises, if any, in amounts set forth on Exhibit F. Notwithstanding anything contained herein to the contrary, such insurance coverage may be included in insurance coverage maintained by Client on its own property. Upon request, Client shall
furnish TriZetto with a Certificate of Insurance or other evidence of insurance coverage. Client shall take commercially reasonable steps to protect from damage TriZetto’s hardware and other property located on Client’s premises, if any. 

                   
ii)   TriZetto Insurance.   TriZetto shall at all times during the term of this Agreement maintain its current levels of insurance coverage as set forth on
Exhibit F, at its own expense. 

                   
iii)   Failure to Maintain Coverage.  
Each party shall promptly notify the other party in writing if a lapse in coverage occurs. Notwithstanding anything contained in this Agreement to the contrary, failure to maintain insurance as provided in this Section 2(f) shall
not be the basis for termination of this Agreement by either party.

3.       The Parties’ Responsibilities.  
The parties will adhere to and comply with the roles and responsibilities set forth in
Exhibit F.

4. 
     Visitations, Access and Exclusivity.  

               
a)   Visitations.   Upon at least two business days’ prior written request to TriZetto, TriZetto will allow Client to visit TriZetto facilities during normal business hours,
subject to TriZetto’s standard administrative and security procedures, to review TriZetto's operations as they relate to the Services provided under this Agreement. Client shall always use all commercially reasonable efforts to avoid any disruption
to TriZetto’s business.

               
b)   Access.   
Client will provide TriZetto prompt and adequate access to Client’s systems and facilities as needed for TriZetto to perform its obligations under this Agreement. Except to the extent necessary to address emergencies or at Client’s request,
TriZetto shall provide at least two business days’ notice of any needed access, and shall always use all commercially reasonable efforts to avoid any disruption to Client’s business.

5. 
     Ownership of Software, Data and Records.  

               
a)   Right to Software.  

                   
i)   TriZetto’s Right.   Except as set forth in
Exhibit A, TriZetto represents and warrants that TriZetto, to the best of its knowledge, owns or has the right to use and license all the hardware and software components used to provide the Supported Applications and
Services under this Agreement for the Supported Applications and as contemplated by this Agreement.

                   
ii)   Client’s Right.   Client represents and warrants that Client, to the best of its knowledge, owns or has the right to use the legacy hardware and software components that it will continue to use
during the term of this Agreement. 

               
b)   Infringement Action.   If Client promptly notifies TriZetto in writing of a third party action against Client that any Service or Supported Application infringes upon a United
States registered patent or a United States registered trademark or copyright, or misappropriates a trade secret, TriZetto will defend such action at its sole expense and will pay any and all costs or damages that are finally awarded against Client
resulting from such action. Client shall provide TriZetto with its reasonable cooperation (at TriZetto’s expense) and full authority to defend or settle the action. TriZetto will not pay any such damages, however, if the claim of infringement is
caused by (1) Client's misuse of the Services; (2) Client's failure to use corrections or enhancements made available at cost on a timely basis by TriZetto; (3) Client's use of the Services in combination with any product or information not provided or
authorized in writ
ing by TriZetto; or (4) information, direction, specification or materials provided by Client or any third party directed by Client. If any Supported Application or Service is, or in TriZetto's reasonable opinion is likely to be, held to be infringing,
TriZetto shall at its option and sole expense either (a) procure the right for Client to continue using it, (b) replace it with a noninfringing equivalent reasonably satisfactory to Client, or (c) modify it to make it noninfringing. If it is not
commercially reasonable for TriZetto to cure infringement by taking the steps set forth in the preceding sentence, TriZetto may terminate the Supported Application or Services. Upon such termination, TriZetto shall, at its own expense, perform
deconversion services in order to transfer and convert the Client Data to a new application. TriZetto will not be responsible for any licensing or maintenance fees for the new application or for any additional hardware or software required to run such
application. The foregoing r
emedies constitute Client's sole and exclusive remedies and TriZetto's entire liability with respect to infringement.

               
c)   Client’s Use of Software.  
Client acknowledges and understands that TriZetto may provide to Client (i) TriZetto owned software, and/or (ii) software applications owned by third parties which TriZetto uses under license agreements with such third parties.
Client acknowledges and agrees that (i) title to all such TriZetto software and software applications remains with and is subject to the proprietary rights of TriZetto or its third party vendors, and (ii) such software and software applications may
contain trade secrets and other valuable proprietary information of TriZetto or its third party vendors. Client may not grant any sublicenses to or otherwise make such software, such software applications, the Supported Applications, or the documentation
available to any other person, entity or business. Client agrees that Client will not reverse assemble, reverse compile, reverse engineer, modify, reproduce, distribute, prepare derivative works based on, or demonstrate such software, such software
applications or th
e Supported Applications in whole or in part. 

               
d)   Data and Records.   TriZetto understands and agrees that TriZetto receives no ownership rights in the materials, data or records furnished by Client ("Client’s Data") and
that Client receives no ownership rights to the Supported Applications. Client represents and warrants that Client and those providing information to Client have the right to transmit to TriZetto and receive any materials, data or records from TriZetto,
that are required to enable TriZetto to perform its obligations under this Agreement. Except as set forth herein or as specifically authorized by Client in writing, TriZetto will not disclose Client’s Data to a third party or make any other use of
Client’s Data. TriZetto shall be responsible for conformance with all laws, statutes, rules, regulations and other obligations relating to TriZetto’s handling of private information relating to medical records obtained by or for Client and its
subsidiari
es and affiliates; provided, however, that TriZetto shall not be responsible for violations of laws, statutes, rules, regulations and other obligations due to Client’s acts or
omissions. 

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e)   Source Code Escrow.   Prior to the first productive use of the TriZetto Software, which shall be no later than the date on which the TriZetto Software is first used by Client for commercial purposes,
TriZetto shall deposit with a third party escrow agent reasonably acceptable to Client the source code, together with all documentation and descriptions associated therewith, of the TriZetto Software, pursuant to a Source Code Escrow Agreement (the “
Escrow Agreement”) substantially in the form of Exhibit G hereto. Pursuant to the Escrow Agreement, Maxicare shall, at no additional cost, be entitled to receive and use for the remaining term of the Agreement, a source code version of the TriZetto
Software that is currently in use by Maxicare if TriZetto has breached its obligations under the Agreement and such breach is not cured as provided herein. For purposes of this Section 5(e), "TriZetto Software" shall m
ean that software developed and owned by TriZetto, including certain Supported Applications owned by TriZetto, any interfaces between or integration of the Supported Applications developed and owned by TriZetto, and any other software application owned
by TriZetto to support Client's use of the Supported Applications. TriZetto shall use its commercially reasonable efforts to have its third party vendors deposit the source code, together with all documentation and descriptions associated therewith, of
the non-TriZetto Software which is offered as a part of the Supported Applications.
6.

     Confidentiality. 
               
a)   Both TriZetto and Client have made and will continue throughout the term of this Agreement to make available to the other party confidential and proprietary materials and information ("Proprietary Information"). All
material and information provided by one party to the other relating to the business, policies, procedures, customs and forms of providing party or any of its affiliates, including but not limited to Client’s Data, as well as information previously
divulged or delivered regarding the aforementioned subject matter, is hereby designated as confidential and proprietary and shall be considered to be Proprietary Information. Except for confidential patient information included in Client’s Data, the
parties agree that the obligations set forth above in this Section 6 do not apply to materials or information that: (i) are already, or otherwise become, generally known by third parties as a result of no act or omission of the receiving party; (ii)
subsequen
t to disclosure hereunder are lawfully received from a third party having the right to disseminate the information and without restriction on disclosure; (iii) are generally furnished to others by the disclosing party without restriction on disclosure;
(iv) were already known by the receiving party prior to
receiving them from the disclosing party and were not received from a third party in breach of that third party's obligations of confidentiality; or (v) are independently developed by the receiving party without the use of Proprietary Information of the
disclosing party.
               
b)   Each party shall maintain the confidentiality of the other's Proprietary Information and will not disclose such Proprietary Information without the written consent of the other party, except in connection with
providing Services in accordance with this Agreement or as otherwise permitted hereunder. Each party shall also keep confidential the terms of this Agreement and/or any exhibits attached hereto. 
               
c)   Neither of the parties’ obligations of confidentiality will prevent or prohibit the parties from providing access to Proprietary Information upon request of a state or federal regulatory agency or authority as
may be required, in such party’s reasonable discretion, by law or judicial or administrative process. Notwithstanding the foregoing, in the event of any requested access to Proprietary Information by a regulatory authority, the one of the parties
from whom the Proprietary Information is requested will provide notice to the other in a timely fashion to allow the other party the opportunity to contest the release of its Proprietary Information to such regulatory authority.
               
d)   TriZetto will comply with all applicable laws and regulations concerning security and privacy in TriZetto’s performance of this Agreement, including, but not limited to, the Health Insurance Portability and
Accountability Act of 1996 and regulations promulgated
thereunder.
               
e)   Except as required by law, neither party shall make any press release, public statements, or disclosures regarding the terms, subject matter or collaboration of the parties to this Agreement, without the prior
written consent of the other party, which consent shall not be unreasonably withheld.

7. 
     Warranty, Disclaimer of Warranty and Limitation of Liability.

               
a)   Performance Warranty.   TriZetto warrants that the Services will be provided in accordance with the Service Levels set forth in
Exhibit B. TriZetto shall not be responsible for any failure to meet the Service Levels resulting from any force majeure as set forth in Section 11(g) or from Client’s failure to use the Required
Equipment. TriZetto will not be responsible for any loss, damage, increase in costs or other expenses relating to conduct which is the responsibility of Client or which is otherwise approved in writing by
TriZetto.

               
b)   Exclusive Remedy.   Except for breaches resulting from TriZetto’s gross negligence or willful misconduct, TriZetto’s obligation and Client’s sole and exclusive remedy from a breach of the
warranty in Section 7(a) or any failure of TriZetto to meet the Service Levels, except from force majeure events including without limitation Client’s acts or omissions, shall be that TriZetto shall use commercially reasonable efforts to correct the
breach, Client shall receive the remedies associated with the applicable Service Levels as described in Exhibit B, and Client may proceed with dispute resolution to pursue damages subject to the limitations set forth in Section 7.

               
c)   Year 2000.

                   
i)   TriZetto represents that the software and hardware set forth in Exhibit A and used by TriZetto in performing the Services have been designed to allow date data
century recognition, calculations which accommodate same
century and multi-century formulae and date value, and date data entry of all values that reflect the century. TriZetto’s obligation and Client’s sole and exclusive remedy from a breach of this representation and warranty, except from force
majeure events including without limitation Client’s acts or omissions, shall be that TriZetto shall, at no cost to Client, reprocess Client’s data that was not processed in accordance with the Service Levels.

                   
ii)   Client represents that the software and hardware, including the legacy systems used by Client, have been designed to allow date data century recognition, calculations which accommodate same century and
multi-century formulae and date value, and date data entry of all values that reflect the century. Except as explicitly set forth herein, TriZetto shall have no liability for such software and hardware.

               
d)   Transmission of Data.   Except to the extent solely caused by TriZetto’s gross negligence or willful misconduct, TriZetto is not responsible for loss of data in transmission, improper transmission by
Client or failure by Client or any third party to act on any communication transmission to or by Client 

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 through TriZetto. In the event of improper transmission or loss of data in transmission, TriZetto’s obligation and Client’s sole and exclusive remedy for such improper transmission or loss of data will be that TriZetto will use
commercially reasonable efforts to recreate such transmission at Client’s expense. 

               
e)   DISCLAIMER OF WARRANTIES.   EXCEPT FOR WARRANTIES PROVIDED IN SECTIONS 5 AND 7, AND EXCEPT FOR SUCH OTHER EXPRESS WARRANTIES MADE IN WRITING AND EXECUTED BY TRIZETTO’S CHIEF
EXECUTIVE OFFICER, PRESIDENT OR VICE PRESIDENT OF LEGAL AFFAIRS, THE
PARTIES MAKE NO OTHER WARRANTY, EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AS TO ANY MATTER WHATSOEVER, INCLUDING BUT NOT LIMITED TO THE HARDWARE, SUPPORTED APPLICATIONS,
SOFTWARE PROVIDED BY TRIZETTO TO CLIENT, HARDWARE AND SOFTWARE USED BY CLIENT BUT NOT PROVIDED BY TRIZETTO, DOCUMENTATION, DATA FILES, OUTPUT, SERVICES, OR OTHER MATTERS PRODUCED OR PROVIDED HEREUNDER.

               
f)   Limitations.   Unless otherwise expressly provided herein, neither TriZetto nor any of its service providers, licensors, employees or agents warrant (i) that the Services provided hereunder will
meet Client’s requirements; (ii) that the operation of the Services will be uninterrupted or error free; or (iii) that the Services will have the capacity to meet demand beyond the volumes in
Exhibit A, if any. Except as set forth herein, TriZetto will not be responsible for any damages that Client may suffer arising out of use, or inability to use, the Services. TriZetto will not be liable for
unauthorized access to or alteration, theft or destruction of Client’s data files, programs, procedures or information through accident, fraudulent means or devices, or any other method, unless such access, alteration, theft or destruction is caused
as a result of TriZetto’s negligence or intentional misconduct. It is hereby acknowledged that it is Client’s responsibility to validate for 
correctness all output and reports and to protect Client’s data and programs from loss by routinely performing backup procedures as required by
TriZetto. 

               
g)   EXCLUDED LIABILITIES.   EXCEPT FOR DAMAGES ARISING FROM BREACHES OF SECTION 6, OR FOR CLAIMS FOR INDEMNIFICATION IN SECTION 8(A), IN NO EVENT WILL EITHER PARTY'S LIABILITY UNDER THIS AGREEMENT OR IN
CONNECTION WITH THE SERVICES PROVIDED HEREUNDER, REGARDLESS OF THE FORM OF ACTION, INCLUDE ANY INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL
DAMAGES OR CLAIMS FOR LOSS OF BUSINESS OR PROFITS, UNDER CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHER LEGAL THEORY, REGARDLESS OF THE CAUSE OF ACTION AND EVEN IF THE PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH POTENTIAL LOSS OR DAMAGE. 

               

h)   AGGREGATE LIABILITY.   EXCEPT FOR DAMAGES ARISING FROM BREACHES OF SECTION 6, OR FOR CLAIMS FOR INDEMNIFICATION IN SECTION 8(A), EACH PARTY’S AGGREGATE LIABILITY TO THE OTHER PARTY PURSUANT TO THIS AGREEMENT UNDER
CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHER LEGAL THEORY, REGARDLESS OF THE CAUSE OF ACTION WILL NOT EXCEED AN AMOUNT EQUAL THE FEES PAID BY CLIENT IN THE TWELVE MONTHS PRIOR TO WHEN THE DAMAGES FIRST AROSE. PRIOR TO THE COMPLETION OF TWELVE MONTHS OF
SERVICES UNDER THIS AGREEMENT, EACH PARTY'S LIABILITY TO THE OTHER PARTY WILL NOT EXCEED AN AMOUNT EQUAL TO THE ACTUAL MONTHLY SERVICES FEES PAID BY CLIENT DURING SUCH PERIOD, EXCEPT FOR DAMAGES ARISING FROM BREACHES OF SECTION 6, OR FOR CLAIMS FOR
INDEMNIFICATION IN SECTION 8(A).

8.
     Indemnification.               
a)   Client Indemnification Obligations.   Client agrees to indemnify, defend and to hold TriZetto harmless for any claims, liability or expense resulting from:
(i) Client’s use of the Supported Applications provided by TriZetto hereunder; (ii) TriZetto’s disclosure of confidential information at Client’s direction, (iii) Client’s violations of its confidentiality obligations and license
grant scope; and (iv) material breach of Client’s representations and warranties provided in Section 5(a) or Section 5(c); except to the extent that the claims are proximately caused by the negligence or willful misconduct of
TriZetto. 

               
b)   Conditions.   Client shall have the right to direct the defense of any indemnification of TriZetto hereunder; provided, that TriZetto may participate in the defense or settlement of the claim at its own expense.

9.
     Dispute Resolution.                
a)   Dispute Resolution.   In connection with a dispute arising out of or relating to this Agreement, the parties shall attempt in good faith to resolve such dispute promptly. If the parties cannot resolve the matter within 45
days, either party may initiate arbitration of the dispute as provided below.

               
b)   Arbitration.   Except for collection actions for fees and for the right of either party to apply to a court of competent jurisdiction for a temporary restraining order, a preliminary injunction, or other equitable relief to
preserve the status quo or
prevent irreparable harm, any controversy or claim arising out of or relating to this Agreement or to its breach shall be settled by arbitration by a single arbitrator in accordance with the
JAMS/Endispute Rules, pursuant to an arbitration held in Los Angeles, California. Judgment upon the award rendered by the arbitrator may be entered into in any court of competent jurisdiction. The arbitrator shall not have the authority to award punitive
damages.

               
c)   Governing Law.   The parties hereby agree that this Agreement was entered into in Los Angeles, California. This Agreement will be governed in accordance with the laws of the State of California without regard to its conflict
of law provisions. The parties agree that jurisdiction and venue for any actions relating to this Agreement will be in the state or federal courts in Los Angeles, California. Except as set forth above, each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in Los Angeles, California, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service
of process and c
onsents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

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10.

     Term and Termination. 

               
 a)   Term.   Unless earlier terminated as provided herein, the term of this Agreement will commence on the date first set forth above and will continue for an initial period of seven years. This Agreement will automatically renew
each year for successive one year terms unless either one of the parties terminates the Agreement by providing written notice of termination to the other party at least 180 days before the termination
date.

               
 b)   Termination for Cause.   This Agreement may be terminated if either party materially breaches this Agreement. In the event of a claim of breach under this Section 10(b), the party alleging such breach shall give written
notice of the alleged breach , which notice shall specify the nature of any such claim in sufficient detail to allow the receiving party to investigate the allegations. This Agreement may be terminated by the party alleging such breach 30 days after the
deliver of notice unless:
(i) the breach is cured within such 30 days; (ii) except for failures to make payments when due, it is not possible to cure the breach within 30 days but the defaulting party has commenced correction within 30 days and proceeds diligently towards, and
completes, a cure within 180 days; or (iii) except for failures to make payments when due, the matter remains a subject of disagreement between the parties and the dispute resolution process has been initiated under Section 9 above. Upon termination of
this Agreement pursuant to this Section 10(b), the parties shall be obligated to pay the termination fees and other existing payment obligations as set forth in
Exhibit E.

 

 
               
 c)   Termination for Convenience.   Client may terminate this Agreement upon 180 days prior written notice to TriZetto setting forth the date of termination and by paying the termination fees set forth hereunder upon the date
of termination. The prices for Services under this Agreement were determined by mutual agreement based upon certain assumed volumes of processing activity and the length of the term of this Agreement. Client acknowledges that without the certainty of
revenue for the full term of the Agreement, TriZetto would have been unwilling to provide processing Services at the prices set forth in the Agreement. TriZetto and Client agree that it would be difficult to ascertain actual damages for termination of the
Agreement for convenience by Client before the end of the term. Upon Client’s early termination, Client will pay TriZetto the amounts set forth on
 Exhibit E. 

 
               
 d)   Deconversion Services Upon Termination.   Upon the termination of this Agreement for any reason and subject to agreement on reasonable terms, TriZetto shall assist Client in the deconversion and transfer of information to
Client or a party or parties identified by Client and with such other actions as may be necessary or appropriate, in Client’s reasonable judgment, to facilitate the transfer of the functions performed by TriZetto to Client or an entity selected by
Client. As soon as practicable following the receipt of a written request from Client, TriZetto will deliver to Client, in a format and on the media available to TriZetto at the time of the request, all of Client’s data. Upon delivery of such data,
TriZetto shall be reimbursed for its costs and labor on a time and materials basis. 

 
               
 e)   Return of Materials Upon Termination.   Upon termination of this Agreement, the Client must immediately cease use of the Services and shall return all documentation and software, if any, relating to the Services and
TriZetto’s confidential information to TriZetto within 30 business days of termination.

 11.
     General. 
 
               
 a)   Authority to Enter into Agreement.   Each party hereby represents and warrants that (i) it has all requisite corporate power and authority to enter, and perform pursuant to, this Agreement; (ii) the execution, delivery and
performance of this Agreement and the consummation of the transactions contemplated hereby have been duly and properly authorized by all requisite corporate action on its part; and (iii) this Agreement has been duly executed and delivered by such
party. 

 
               
 b)   Relationship Between the Parties.   The performance by TriZetto of its duties and obligations under this Agreement shall be that of an independent contractor and nothing contained in this Agreement shall create or imply an
agency relationship between Client and
 TriZetto, nor shall this Agreement be deemed to constitute a joint venture or partnership between Client and
 TriZetto. Each party assumes sole and full responsibility for its acts and the acts of its personnel. Neither party shall have the authority to make commitments or enter into contracts on behalf of, bind, or otherwise oblige the other party except for
the limited agency expressly provided for herein. 

 
               
 c)   TriZetto Not Engaged in Practice of Medicine.   TriZetto does not, nor does it intend to, engage in the performance or delivery of medical or hospital services or other types of healthcare. TriZetto’s performance under
this Agreement should not, in any case, be deemed or understood as
 a recommendation, endorsement, guarantee or warranty of the professional services of Client or any providers who render healthcare services. Nothing herein shall be construed to imply that TriZetto, or any of TriZetto’s subsidiaries, officers,
directors, employees or agents are engaged in the practice of medicine or other professions related thereto. All matters related to such field shall be the exclusive province of Client and its staff, agents and employees. 

               

d)   Government Licensee.   If Client is using the Supported Applications on behalf of any unit or agency of the United States Government, the following applies: The Supported Applications and
any Proprietary Information is provided with RESTRICTED RIGHTS. Use, duplication or disclosure by the Government is subject to restrictions as set forth in Subparagraphs (a) through (d) of the Commercial Computer-Restricted Rights clause at FAR 52.227-19
when applicable, or in Subparagraph 252.227-7013 (c)(1)(ii) of the Rights in Technical Data and Computer Software at DFARS, and in similar clauses in the NASA FAR Supplement.
Contractor/manufacturer is The TriZetto Group, Inc., 567 San Nicolas Drive, Suite 360 Newport Beach, CA 92660. 

 

               

e)   Additional Costs.   If certain items and outside services are purchased by TriZetto in order to provide Services to Client these items and services, detailed below, will be charged to and
payable by Client at the actual cost incurred by TriZetto, without markup, fees or overhead: 

                   
i)   Forms and supplies.   All forms and supplies, such as special forms and standard printer paper utilized for printing reports and action letters, envelopes utilized for mailing action letters, plastic cards
utilized for member identification cards.  

                   
ii)   Postage and shipping expenses.  
All postage and shipping expenses required for delivering, as requested by Client, forms, letters, reports, magnetic tapes, identification cards, and similar items., to Client or to Client’s designees, members, employers, etc.

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iii)   Telecommunication expenses.  
All communication line expenses related to providing Services. These expenses include those necessary to transmit data between Client and TriZetto locations, as well as to other locations as requested by Client.  

                   
iv)   Travel.   Out-of-pocket travel expenses requested by Client and required to provide TriZetto's services at Client’s location. These expenses include coach airfare, lodging,
meals, and ground transportation. 

               
f)   Notices.   All notices and other communications pursuant to this Agreement shall be in writing and deemed to be sufficient if contained in a written instrument and shall be
deemed given if delivered personally, via facsimile, sent by nationally-recognized overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, addressed to the party at the address set forth on the signature
page to this Agreement, or at such other address for such party as shall be specified by like notice. All such notices and other communications shall be deemed to have been received (a) in the case of personal delivery, on the date of such delivery, (b)
in the case of a facsimile, when the party receiving such copy shall have confirmed receipt of the communication, (c) in the case of delivery by nationally-recognized overnight courier, on the business day following dispatch, and (d) in the case of
mailing, on the th
ird business day following such mailing. 

               
g)   Force Majeure.   Each party’s performance of its obligations will be excused or the timeframe for performance will be extended as is reasonably necessary under the
circumstances, in the event that such party is prevented from performing its obligations in whole or in part by riots, fire, flood, earthquake, explosion, epidemics, war, embargo, civil or military authority, act of God, changes in law, regulation or
governmental policy, acts or omissions of vendors or suppliers, communication or transportation difficulties or delays, vendor delays or other causes beyond its reasonable control (individually, a “force majeure event”); provided, that no event
or act shall be considered a force majeure event if it could be avoided through commercially reasonable preparation or the expenditure of a commercially reasonable amount of time or money. In the event that TriZetto is prevented or delayed in the delivery
or installation
of the Services because of a force majeure event, such delivery or installation shall take place as soon thereafter as is reasonably possible.  

               
h)   Assignment.   Neither this Agreement nor any rights granted hereunder may be sold, leased, assigned or otherwise transferred, in whole or in part by either party by operation of
law or otherwise, and any such attempted assignment shall be void and of no effect without the advance written consent of the other party, such consent not to be unreasonably withheld or delayed; provided, however, that such consent shall not be required if either party assigns this Agreement to a wholly owned subsidiary or an affiliate or in connection with a merger, acquisition, or sale of all or
substantially all of its assets or stock, unless the surviving entity is a competitor of TriZetto, as determined by TriZetto in its reasonable judgment.  

               
i)   Other Agreements.   Nothing in this Agreement shall prevent TriZetto or TriZetto's affiliated companies from entering into similar or different agreements with others in the
health care industry or other industries, including Client’s competitors.   

               
 j)   Non-Solicitation.   Except as set forth on Exhibit G or Exhibit I, 
each of the parties agrees to refrain from directly or indirectly soliciting the employment of any current or future employee during the term of, and for a period of one year after the expiration of, this Agreement, unless permission is granted in writing
by the employer, which consent may be granted or withheld in such party’s sole discretion. The foregoing provision will not prevent either party from employing any such person who contacts such party on his or her own initiative or in response to
general solicitation without any direct solicitation, by or other encouragement from, such party or its representatives. In the event that either party hires a person in violation of this Section 11(j), such party shall pay the other party two-times the
annual sa
lary being paid by the offending party. The parties agree that this amount represents reasonable and foreseeable estimates of damages in conformity with California Civil Code Section 1671.  

               
k)   Severability.   If one or more provisions or parts of this Agreement are declared invalid, illegal or unenforceable by a court with jurisdiction over the parties to this
Agreement, the remaining provisions will nevertheless remain in full force and effect in such jurisdiction, unless such severance would frustrate the contractual intent of the parties.

               
l)   Entire Agreement; Amendments, Exhibits.  
This Agreement (including the Schedules and Exhibits attached hereto) embodies the entire understanding of the parties in
relation to its subject matter, and supersedes all proposals, letters of intent or prior agreements, oral or written, and all other communications and representations between the parties relating to the subject matter of this Agreement and no other
agreement or understanding, verbal or otherwise, relative to this subject matter exists between the parties at the time of execution of this Agreement. This Agreement may be amended only by a written agreement signed by both parties. Each of the exhibits
attached to this Agreement is made a part of this Agreement and the terms of these Exhibits will be fully binding on the parties. The parties agree that 
Exhibit E  is attached hereto in its final form. The remaining exhibits shall become final in their current forms attached hereto on September 20, 2000, unless the parties agree in writing to revisions or
amendments thereto. The parties agree that minor and insubstantial changes may be made to the remaining exhibits.

               
m)   Survival.   Notwithstanding the expiration or termination of this Agreement or any renewal period hereunder, the parties agree that the terms of Sections 2, 5, 6 7(d) –
7(h), 8, 9, 10 and 11 shall survive.

               
n)   Waiver.   No waiver of any breach of any provisions of this Agreement shall be effective unless made in writing and signed by each of the parties to this Agreement.
 Each party agrees that no failure or delay by the other party in exercising any right, power or privilege hereunder will operate as a waiver thereof, nor will any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any right, power or privilege hereunder. 

               
o)   Headings.   The headings used herein are for identification and reference purposes only and shall not be used in the construction and interpretation of this Agreement.

               
p)   Successors and Assigns.   This Agreement shall inure to the benefit of and be binding on the parties hereto and their respective successors and assigns (if such assignment was
properly made pursuant to this Agreement).

               
q)   Counterparts.   This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one and the same agreement. This Agreement shall become effective when counterparts have been signed by each of the parties and delivered by facsimile or other means to the other
party.  

6

               
r)   Remedies.   Except for remedies that are described herein as sole and exclusive remedies, no remedy conferred by any of the specific provisions of this Agreement is intended to
be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder, now or hereafter existing at law or in equity or by statute or otherwise. The election of any one or more
remedies shall not constitute a waiver of the right to pursue other available remedies.

7

     IN WITNESS WHEREOF, the parties have caused this Application and Business Services Agreement to be executed and delivered by their duly authorized representatives, as of the date first above written.

 
	

      

      

      	 	  	THE TRIZETTO GROUP, INC. (“TriZetto”)

      

      

      
		 	By:  	
		 	  	
      

    
	
    	 	  	
Name:

Title:

Address:     567 San Nicolas Drive, Suite 360

                   Newport Beach, CA 92660

Phone:        (949) 719-2200

Fax:            (949) 219-2197

 
 

	

      

      

      	 	  	
MAXICARE HEALTH PLANS, INC.
    (“Client”)

      

      

      
		 	By:  	
		 	  	
      

    
	
    	 	  	
Name:

Title:

Address:     1149 South Broadway Street

                          Los Angeles, CA 90015

      Phone:         (213) 765-2000

Fax:             (213) 765-2393

 

 

 

 

 

 

S-1EXHIBIT 4-2

EXHIBIT 4.2

 

FastForward Networks, Inc. 

1998 Stock Plan

 

Adopted on September 9, 1998 

(Revised on October 27, 1999 and January 27, 2000)

	
     TABLE OF CONTENTS

   
	.	.	 	Page No.	 
	

    SECTION 1.	

    ESTABLISHMENT AND PURPOSE	 	

    3	 
	

    SECTION 2.	

    ADMINISTRATION	 		

    3	 
	   (a)	Committees of the Board of Directors		3	 
	   (b)	Authority of the Board of Directors		3	 
	

    SECTION 3.	

    ELIGIBILITY	 		

    3	 
	   (a)	General Rule	 		3	 
	   (b)	Ten-Percent Stockholders.		3	 
	

    SECTION 4.	

    STOCK SUBJECT TO PLAN		

    3	 
	   (a)	Basic Limitation	 		3	 
	   (b)	Additional Shares	 		3	 
	

    SECTION 5.	

    TERMS AND CONDITIONS OF AWARDS OR SALES		

    4	 
	   (a)	Stock Purchase Agreement		4	 
	   (b)	Duration of Offers and Nontransferability of Rights		4	 
	   (c)	Purchase Price	 		4	 
	   (d)	Withholding Taxes	 		4	 
	   (e)	Restrictions on Transfer of Shares and Minimum Vesting		4	 
	   (f)	Accelerated Vesting	 		4	 
	

    SECTION 6.	

    TERMS AND CONDITIONS OF OPTIONS		

    4	 
	   (a)	Stock Option Agreement	 		4	 
	   (b)	Number of Shares	 		4	 
	   (c)	Exercise Price	 		4	 
	   (d)	Withholding Taxes	 		4	 
	   (e)	Exercisability	 		5	 
	   (f)	Accelerated Exercisability		5	 
	   (g)	Basic Term	 		5	 
	   (h)	Nontransferability	 		5	 
	   (i)	Termination of Service (Except by Death)		5	 
	   (j)	Leaves of Absence	 		5	 
	   (k)	Death of Optionee	 		5	 
	   (l)	No Rights as a Stockholder		6	 
	   (m)	Modification, Extension and Assumption of Options.		6	 
	   (n)	Restrictions on Transfer of Shares and Minimum Vesting		6	 
	   (o)	Accelerated Vesting	 		6	 
	

    SECTION 7.	

    PAYMENT FOR SHARES		

    6	 
	   (a)	General Rule	 		6	 
	   (b)	Surrender of Stock	 		6	 
	   (c)	Services Rendered	 		6	 
	   (d)	Promissory Note	 		7	 
	   (e)	Exercise/Sale	 		7	 
	   (f)	Exercise/Pledge	 		7	 
	

    SECTION 8.	

    ADJUSTMENT OF SHARES		

    7	 
	   (a)	General	 		7	 
	   (b)	Mergers and Consolidations		7	 
	   (c)	Reservation of Rights	 		7	 
	

    SECTION 9.	

    SECURITIES LAWS REQUIREMENTS		

    7	 
	   (a)	General	 		8	 
	   (b)	Financial Reports	 		8	 
	

    SECTION 10.	

    NO RETENTION RIGHTS		

    8	 
	

    SECTION 11.	

    DURATION AND AMENDMENTS		

    8	 
	   (a)	Term of the Plan	 		8	 
	   (b)	Right to Amend or Terminate the Plan		8	 
	   (c)	Effect of Amendment or Termination		8	 
	

    SECTION 12.	

    DEFINITIONS	 		

    8	 

 

FastForward Networks, Inc. 1998 Stock Plan

1. Establishment And Purpose 

     The purpose of the Plan is to offer selected individuals an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by purchasing Shares of the Company’s
Stock. The Plan provides both for the direct award or sale of Shares and for the grant of Options to purchase Shares. Options granted under the Plan may include Nonstatutory Options as well as ISOs intended to qualify under Section 422 of the Code.

Capitalized terms are defined in Section 12. 

2. Administration 

     (a) 	Committees of the Board of Directors The Plan may be administered by one or more Committees. Each Committee shall consist of one or more members of the Board
of Directors who have been appointed by the Board of Directors. Each Committee shall have such authority and be responsible for such functions as the Board of Directors has assigned to it. If no Committee has been appointed, the entire Board of Directors
shall administer the Plan. Any reference to the Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom the Board of Directors has assigned a particular function. 

     (b) 	Authority of the Board of Directors. Subject to the provisions of the Plan, the Board of Directors shall have full authority and discretion to take any actions
it deems necessary or advisable for the administration of the Plan. All decisions, interpretations and other actions of the Board of Directors shall be final and binding on all Purchasers, all Optionees and all persons deriving their rights from a
Purchaser or Optionee. 

3. Eligibility 

     (a) 	General Rule. Only Employees, Outside Directors and Consultants shall be eligible for the grant of Options or the direct award or sale of Shares. Only
Employees shall be eligible for the grant of ISOs. 

     (b) 	Ten-Percent Stockholders. An individual who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its
Parent or any of its Subsidiaries shall not be eligible for designation as an Optionee or Purchaser unless (i) the Exercise Price is at least 110% of the Fair Market Value of a Share on the date of grant, (ii) the Purchase Price (if any) is at least 100%
of the Fair Market Value of a Share and (iii) in the case of an ISO, such ISO by its terms is not exercisable after the expiration of five years from the date of grant. For purposes of this Subsection (b), in determining stock ownership, the attribution
rules of Section 424(d) of the Code shall be applied. 

4. Stock Subject To Plan. 

     (a) 	Basic Limitation. Shares offered under the Plan may be authorized but unissued Shares or treasury Shares. The aggregate number of Shares that may be issued
under the Plan (upon exercise of Options or other rights to acquire Shares) shall not exceed 9,000,0001 Shares, subject to adjustment pursuant to Section 8. The number of Shares that are subject to
Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares that then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient
Shares to satisfy the requirements of the Plan. 

     (b) 	Additional Shares. In the event that any outstanding Option or other right for any reason expires or is canceled or otherwise terminated, the Shares allocable
to the unexercised portion of such Option or other right shall again be available for the purposes of the Plan. In the event that Shares issued under the Plan are reacquired by the Company pursuant to any forfeiture provision, right of repurchase or right
of first refusal, such Shares shall again be available for the purposes of the Plan, except that the aggregate number of Shares which may be issued upon the exercise of ISOs shall in no event exceed 9,000,000 Shares (subject to adjustment pursuant to
Section 8). 

	1
  	Increase in Shares under the plan from 2,100,000 to 2,500,000 approved by Board on October 27, 1999 and increase in Shares under the plan from 2,500,000 to 3,500,000 approved by Board on January 27, 2000. Increase in
Shares under the plan from 3,500,000 to 4,250,000 approved by Board on May 17, 2000. 2 for 1 split approved by Board on July 5, 2000. Increase in Shares under the plan from 8,500,000 to 9,000,000 approved by Board on September 6, 2000.
   

3

5. Terms And Conditions Of Awards Or Sales. 

     (a) 	Stock Purchase Agreement. Each award or sale of Shares under the Plan (other than upon exercise of an Option) shall be evidenced by a Stock Purchase Agreement
between the Purchaser and the Company. Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors
deems appropriate for inclusion in a Stock Purchase Agreement. The provisions of the various Stock Purchase Agreements entered into under the Plan need not be identical. 

     (b) 	Duration of Offers and Nontransferability of Rights. Any right to acquire Shares under the Plan (other than an Option) shall automatically expire if not
exercised by the Purchaser within 30 days after the grant of such right was communicated to the Purchaser by the Company. Such right shall not be transferable and shall be exercisable only by the Purchaser to whom such right was granted. 

     (c) 	Purchase Price. The Purchase Price of Shares to be offered under the Plan shall not be less than 85% of the Fair Market Value of such Shares, and a higher
percentage may be required by Section 3(b). Subject to the preceding sentence, the Purchase Price shall be determined by the Board of Directors at its sole discretion. The Purchase Price shall be payable in a form described in Section 7. 

     (d) 	Withholding Taxes. As a condition to the purchase of Shares, the Purchaser shall make such arrangements as the Board of Directors may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such purchase. 

     (e) 	Restrictions on Transfer of Shares and Minimum Vesting. Any Shares awarded or sold under the Plan shall be subject to such special forfeiture conditions,
rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Purchase Agreement and shall apply in addition to any restrictions that may
apply to holders of Shares generally. In the case of a Purchaser who is not an officer of the Company, an Outside Director or a Consultant, any right to repurchase the Purchaser’s Shares at the original Purchase Price (if any) upon termination of the
Purchaser’s Service shall lapse at least as rapidly as 20% per year over the five-year period commencing on the date of the award or sale of the Shares. Any such right may be exercised only within 90 days after the ter
mination of the Purchaser’s Service for cash or for cancellation of indebtedness incurred in purchasing the Shares. 

     (f) 	Accelerated Vesting. Unless the applicable Stock Purchase Agreement provides otherwise, any right to repurchase a Purchaser’s Shares at the original
Purchase Price (if any) upon termination of the Purchaser’s Service shall lapse and all of such Shares shall become vested if (i) the Company is subject to a Change in Control before the Purchaser’s Service terminates and (ii) the repurchase
right is not assigned to the entity that employs the Purchaser immediately after the Change in Control or to its parent or subsidiary. 

6. Terms And Conditions Of Options. 

     (a) 	Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option
shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Option Agreement.
The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 

     (b) 	Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such
number in accordance with Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option. 

     (c) 	Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value
of a Share on the date of grant, and a higher percentage may be required by Section 3(b). The Exercise Price of a Nonstatutory Option shall not be less than 85% of the Fair Market Value of a Share on the date of grant, and a higher percentage may be
required by Section 3(b). Subject to the preceding two sentences, the Exercise Price under any Option shall be determined by the Board of Directors at its sole discretion. The Exercise Price shall be payable in a form described in Section 7. 

     (d) 	Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Board of Directors may require for the
satisfaction of any federal, state, local or foreign 

4

withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with the disposition of Shares acquired by exercising an Option. 

     (e) 	Exercisability. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. In the case of an
Optionee who is not an officer of the Company, an Outside Director or a Consultant, an Option shall become exercisable at least as rapidly as 20% per year over the five-year period commencing on the date of grant. Subject to the preceding sentence, the
exercisability provisions of any Stock Option Agreement shall be determined by the Board of Directors at its sole discretion.

     (f) 	Accelerated Exercisability. Unless the applicable Stock Option Agreement provides otherwise, all of an Optionee’s Options shall become exercisable in full
if (i) the Company is subject to a Change in Control before the Optionee’s Service terminates, (ii) such Options do not remain outstanding, (iii) such Options are not assumed by the surviving corporation or its parent and (iv) the surviving
corporation or its parent does not substitute options with substantially the same terms for such Options. 

     (g) 	Basic Term. The Stock Option Agreement shall specify the term of the Option. The term shall not exceed 10 years from the date of grant, and a shorter term may
be required by Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to expire. 

     (h) 	Nontransferability. No Option shall be transferable by the Optionee other than by beneficiary designation, will or the laws of descent and distribution. An
Option may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative. No Option or interest therein may be transferred, assigned, pledged or hypothecated by the Optionee during the
Optionee’s lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 

     (i) 	Termination of Service (Except by Death). If an Optionee’s Service terminates for any reason other than the Optionee’s death, then the Optionee’
s Options shall expire on the earliest of the following occasions:  

           
(i) 	The expiration date determined pursuant to Subsection (g) above;

           
(ii) 	The date three months after the termination of the Optionee’s Service for any reason other than Disability, or such later date as the Board of Directors may determine; or 

           
(iii) 	The date six months after the termination of the Optionee’s Service by reason of Disability, or such later date as the Board of Directors may determine.

     The Optionee may exercise all or part of the Optionee’s Options at any time before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become
exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination). The balance of
such Options shall lapse when the Optionee’s Service terminates. In the event that the Optionee dies after the termination of the Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options may be
exercised (prior to expiration) by the executors or administrators of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such
Opt
ions had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination).

     (j) 	Leaves of Absence. For purposes of Subsection (i) above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such
leave was approved by the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company). 

     (k) 	Death of Optionee. If an Optionee dies while the Optionee is in Service, then the Optionee’s Options shall expire on the earlier of the following
dates:  

           
(i) 	The expiration date determined pursuant to Subsection (g) above; or

5

 	           
(ii) 	The date 12 months after the Optionee’s death. 

     All or part of the Optionee’s Options may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators of the Optionee’s estate or by
any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s death or became exercisable as a result of
the death. The balance of such Options shall lapse when the Optionee dies. 

     (l) 	No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the
Optionee’s Option until such person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to the terms of such Option. 

     (m) 	Modification, Extension and Assumption of Options. Within the limitations of the Plan, the Board of Directors may modify, extend or assume outstanding Options
or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options for the same or a different number of Shares and at the same or a different Exercise Price. The foregoing
notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such Option. 

     (n) 	Restrictions on Transfer of Shares and Minimum Vesting. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions,
rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any restrictions that may
apply to holders of Shares generally. In the case of an Optionee who is not an officer of the Company, an Outside Director or a Consultant:  

           
(i) 	Any right to repurchase the Optionee’s Shares at the original Exercise Price upon termination of the Optionee’s Service shall lapse at least as rapidly as 20% per year over the five-year period commencing on the date of the option grant;
 

           
(ii) 	Any such right may be exercised only for cash or for cancellation of indebtedness incurred in purchasing the Shares; and 

           
(iii) 	Any such right may be exercised only within 90 days after the later of (A) the termination of the Optionee’s Service or (B) the date of the option exercise.

     (o) 	Accelerated Vesting  Unless the applicable Stock Option Agreement provides otherwise, any right to repurchase an Optionee’s Shares at the original
Exercise Price upon termination of the Optionee’s Service shall lapse and all of such Shares shall become vested if (i) the Company is subject to a Change in Control before the Optionee’s Service terminates and (ii) the repurchase right is not
assigned to the entity that employs the Optionee immediately after the Change in Control or to its parent or subsidiary. 

7. Payment For Shares. 

     (a) 	General Rule. The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents at the time when such
Shares are purchased, except as otherwise provided in this Section 7. 

     (b) 	Surrender of Stock. To the extent that a Stock Option Agreement so provides, all or any part of the Exercise Price may be paid by surrendering, or attesting to
the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value on the date when the Option is exercised. The Optionee shall not
surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes. 

     (c) 	Services Rendered. At the discretion of the Board of Directors, Shares may be awarded under the Plan in consideration of services rendered to the Company, a
Parent or a Subsidiary prior to the award. At the discretion of the Board of Directors, Shares may also be awarded under the Plan in consideration of services to 

6

be rendered to the Company, a Parent or a Subsidiary after the award, except that the par value of such Shares, if newly issued, shall be paid in cash or cash equivalents. 

     (d) 	Promissory Note. To the extent that a Stock Option Agreement or Stock Purchase Agreement so provides, all or a portion of the Exercise Price or Purchase Price
(as the case may be) of Shares issued under the Plan may be paid with a full-recourse promissory note. However, the par value of the Shares, if newly issued, shall be paid in cash or cash equivalents. The Shares shall be pledged as security for payment of
the principal amount of the promissory note and interest thereon. The interest rate payable under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the imputation of additional interest under the Code.
Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any) and other provisions of such note. 

     (e) 	Exercise/Sale. To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery (on
a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of all or part of the Exercise Price and any withholding
taxes. 

     (f) 	Exercise/Pledge. To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery
(on a form prescribed by the Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part
of the Exercise Price and any withholding taxes. 

8. Adjustment Of Shares. 

     (a) 	General. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of an extraordinary dividend
payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a recapitalization, a spin-off, a reclassification
or a similar occurrence, the Board of Directors shall make appropriate adjustments in one or more of (i) the number of Shares available for future grants under Section 4, (ii) the number of Shares covered by each outstanding Option or (iii) the Exercise
Price under each outstanding Option. 

     (b) 	Mergers and Consolidations. In the event that the Company is a party to a merger or consolidation, outstanding Options shall be subject to the agreement of
merger or consolidation. Such agreement, without the Optionees’ consent, may provide for:  

           
(i) 	The continuation of such outstanding Options by the Company (if the Company is the surviving corporation); 

           
(ii) 	The assumption of the Plan and such outstanding Options by the surviving corporation or its parent; 

           
(iii) 	The substitution by the surviving corporation or its parent of options with substantially the same terms for such outstanding Options; or 

           
(iv) 	The cancellation of such outstanding Options without payment of any consideration.

     (c) 	Reservation of Rights. Except as provided in this Section 8, an Optionee or Purchaser shall have no rights by reason of (i) any subdivision or consolidation of
shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of shares of stock of any class. Any issuance by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business
or assets. 

9. Securities Law Requirements. 

7

     (a) 	General. Shares shall not be issued under the Plan unless the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements
of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the
Company’s securities may then be traded. 

     (b) 	Financial Reports. The Company each year shall furnish to Optionees, Purchasers and stockholders who have received Stock under the Plan its balance sheet and
income statement, unless such Optionees, Purchasers or stockholders are key Employees whose duties with the Company assure them access to equivalent information. Such balance sheet and income statement need not be audited.

10. 	No Retention Rights. 

     Nothing in the Plan or in any right or Option granted under the Plan shall confer upon the Purchaser or Optionee any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Purchaser or Optionee) or of the Purchaser or Optionee, which rights are hereby expressly reserved by each, to terminate his or her Service at
any time and for any reason, with or without cause. 

11. 	Duration and Amendments. 

     (a) 	Term of the Plan. The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors, subject to the approval of the
Company’s stockholders. In the event that the stockholders fail to approve the Plan within 12 months after its adoption by the Board of Directors, any grants of Options or sales or awards of Shares that have already occurred shall be rescinded, and
no additional grants, sales or awards shall be made thereafter under the Plan. The Plan shall terminate automatically 10 years after its adoption by the Board of Directors and may be terminated on any earlier date pursuant to Subsection (b) below. 

     (b) 	Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or terminate the Plan at any time and for any reason; provided, however, that
any amendment of the Plan which increases the number of Shares available for issuance under the Plan (except as provided in Section 8), or which materially changes the class of persons who are eligible for the grant of ISOs, shall be subject to the
approval of the Company’s stockholders. Stockholder approval shall not be required for any other amendment of the Plan. 

     (c) 	Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Option granted
prior to such termination. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously granted under the Plan. 

12. 	Definitions. 

      (a) 	“Board of Directors” shall mean the Board of Directors of the Company, as constituted

from time to time. 

      (b) 	“Change in Control” shall mean: 

         (i) 	The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not shareholders of the Company
immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving
entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or  

           
(ii) 	The sale, transfer or other disposition of all or substantially all of the Company’s assets.

A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the
Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

      (c) 	“Code” shall mean the Internal Revenue Code of 1986, as amended. 

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      (d) 	“Committee” shall mean a committee of the Board of Directors, as described in

      (e) 	“Company” shall mean FastForward Networks, Inc., a Delaware corporation. 

Section 2(a).

     (f) 	“Consultant” shall mean a person who performs bona fide services for the Company, a Parent or a Subsidiary as a consultant or advisor, excluding
Employees and Outside Directors. 

     (g) 	“Disability” shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment. 

     (h) 	“Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 

     (i) 	“Exercise Price” shall mean the amount for which one Share may be purchased upon exercise of an Option, as specified by the Board of Directors in the
applicable Stock Option Agreement. 

     (j) 	“Fair Market Value” shall mean the fair market value of a Share, as determined by the Board of Directors in good faith. Such determination shall be
conclusive and binding on all persons. 

     (k) 	“ISO” shall mean an employee incentive stock option described in Section 422(b) of the Code. 

     (l) 	“Nonstatutory Option” shall mean a stock option not described in Sections 422(b) or 423(b) of the Code. 

     (m) 	“Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 

       (n) 	“Optionee” shall mean an individual who holds an Option. 

     (o) 	“Outside Director” shall mean a member of the Board of Directors who is not an Employee. 

     (p) 	“Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption
of the Plan shall be considered a Parent commencing as of such date. 

      (q) 	“Plan” shall mean this FastForward Networks, Inc. 1998 Stock Plan.

     (r) 	“Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as
specified by the Board of Directors. 

     (s) 	“Purchaser” shall mean an individual to whom the Board of Directors has offered the right to acquire Shares under the Plan (other than upon exercise
of an Option). 

      (t) 	“Service” shall mean service as an Employee, Outside Director or Consultant. 

      (u) 	“Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if 
applicable).

      (v) 	“Stock” shall mean the Common Stock of the Company, with a par value of $0.001 per

Share. 

     (w) 	“Stock Option Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions
pertaining to the Optionee’s Option. 

     (x) 	“Stock Purchase Agreement” shall mean the agreement between the Company and a Purchaser who acquires Shares under the Plan which contains the terms,
conditions and restrictions pertaining to the acquisition of such Shares. 

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     (y) 	“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a
Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 

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