Document:

exv10w1w21

 

EXHIBIT 10.1.21

SOFTWARE LICENSE, MAINTENANCE AND SUPPORT AGREEMENT

This Software License, Maintenance and Support Agreement (“Agreement”), deemed
effective May 20, 2004, (“Effective Date”) is by and between ISO Strategic
Solutions, Inc. (“ISO”) having a place of business at 6 Trafalgar Square
Nashua, New Hampshire 03063, and Specialty Underwriters’ Alliance, Inc.
(“SUA”), having its principal place of business at 8585 Stemmons Fwy, Suite
200, South Tower, Dallas, Texas 75247.

	1.	 	DEFINITIONS: The following terms shall have the following meanings:
	 
	1.1	 	Licensee: Specialty Underwriters’ Alliance, Inc., and any of its
affiliates and subsidiaries that are specifically listed on Schedule I.
	 
	1.2	 	Product: As described on Exhibit A, including all materials related
thereto supplied to Licensee under this Agreement, which may include,
without limitation, Documentation, flow charts, logic diagrams, object
codes, and materials of any type whatsoever (tangible or intangible and
machine or human readable) which incorporate or reflect the design,
specifications, or workings of such programs and any changes, additions or
modifications provided by ISO.
	 
	1.3	 	Documentation: Written materials and manuals (and machine-readable text
subject to display and printout) describing the functional processes,
assumptions, specifications and principles of operation of the computer
programs to a Product and designated as the official documentation to such
Product by ISO.
	 
	1.4	 	Annual Subscription Fee (“ASF”): The fee to be paid to ISO by Licensee
each year for the right to use the Product and receive the services as
described in Section 4 for the term of this Agreement.
	 
	1.5	 	Nonconformity: A failure of the computer programs of the “Product” to
operate in substantial accordance with the Product’s
manuals designated by ISO and provided to Licensee as Documentation to such
programs.
	 
	1.6	 	Enhancements: An enhancement to, change in or modification of the
most current Release of the Product including changes to use
alternative Microsoft platforms, which ISO makes generally available to
Licensees of the Product.
	 
	1.7	 	Release: An edition of the entire Product which is made generally
available to licensees of the Product that have a fully executed Software, Maintenance and Support Agreement with ISO and which is the most
current edition of the Product at the time of such general availability.

	2.	 	TITLE AND SCOPE OF LICENSE
	 
	 	 	Subject to any additional restrictions specified in Exhibit A, ISO grants
Licensee a worldwide, nontransferable (except as expressly permitted by this
Agreement) and nonexclusive license to use the Product for its internal
business operations for insurance policies covering risks located in the
United States. ISO reserves all rights not expressly granted to Licensee
herein, and no other rights and licenses are granted or will be deemed to
have been granted hereunder, except that Licensee has a right to access and
use the Product as set forth herein.
	 
	3.	 	DELIVERY, INSTALLATION, AND USE
	 
	3.1	 	ISO shall deliver to Licensee one copy of the Release of a Product
available for distribution to Licensee on the Effective Date or in
accordance with a timetable as described by Licensee. Installation of the
Product shall be limited to Licensee’s home office, or on prior notice to
ISO, at such other locations where access to the Product is limited to the
Licensee, or is on hardware owned and controlled by Licensee, or at an
outsourced location that is in accordance with section 3.6.
Installation of the Product is Licensee’s responsibility. Licensee may
separately contract with ISO for implementation assistance if Licensee so

 

 

	 	 	desires. Initial delivery of a Product shall constitute fulfillment of
ISO’s obligation under this paragraph. Delivery shall be via CD-ROM.
Delivery shall be the date of shipment of the Product and all shipments are
F.O.B. point of origin.
	 
	3.2	 	Licensee acknowledges that the Product (and the components thereof)
contains unique, confidential and secret information and is the trade
secret and confidential proprietary product of ISO. Licensee shall not
allow any person or entity to copy a Product in whole or in part in any
manner except as expressly permitted in this Agreement. Licensee shall
not disclose or otherwise make a Product available to any person or entity
other than employees of Licensee or contractors, affiliates, partner
agents and customers, from time to time required to have such knowledge
for the normal and intended use of such Product. Licensee agrees to have
each such employee held to a level of care sufficient to protect the
Product from unauthorized use or disclosure. These obligations are
independent covenants and shall continue after the Agreement is
terminated.
	 
	3.3	 	Licensee may make a limited number of copies of the Product as reasonably
necessary for testing, backup purposes, disaster recovery and installation
purposes only. Such copies shall not be distributed to any third parties
except as otherwise indicated in the previous sentence. If the Licensee’s
computer facility is unusable, Licensee may transfer the Product to a
backup computer facility, which is owned and operated solely by Licensee.
If Licensee’s anticipated backup facility is not owned and operated by
Licensee, Licensee shall obtain ISO’s prior written approval, which shall
not be unreasonably withheld, for use of such facility. Licensee shall
have the right, at no additional charge, to reproduce solely for its
internal use, all original manuals and Documentation furnished by ISO to
this Agreement. All copies of manuals or Documentation made by Licensee
shall remain the property of ISO. For disaster recovery purposes, Licensee
may copy the Product for use in an operating environment and at a location
other than those designated in this Agreement as part of its disaster
recovery plan. Licensee’s use of the Product for disaster recovery
purposes shall be limited to: (i) testing Licensee’s disaster recovery
plan and, (ii) running the Product in the event of a disaster for as long
as Licensee’s authorized installation(s) or locations as set forth in this
Agreement are disabled or otherwise impaired due to the disaster. For
purposes of this Agreement, a disaster shall mean an event that results in
the shutdown of the Licensee’s computer system, a catastrophic loss of
data or other systematic mechanical difficulty that disrupts the
Licensee’s computer network.
	 
	3.4	 	The above described rights to copy a Product are subject to the following
conditions: (i) all such additional copies shall be made at Licensee’s
cost and expense; (ii) all such copies shall reproduce any copyright,
proprietary and confidentiality legends (whether printed or machine
readable) placed upon or contained in a Product; (iii) all such additional
copies shall be the property of ISO; (iv) Licensee shall maintain
appropriate written records of the number and location of all such copies,
and shall furnish such information to ISO upon request; and (v) except as
provided herein, all terms and conditions of this Agreement shall apply to
all such copies.
	 
	3.5	 	Licensee has sole responsibility for Licensee’s use and operation of the
Product, including monitoring and verifying input and output data, back-up
of input and output data, providing data for any files or tables of the
Product, and for maintaining the required Product operating environment.
Licensee shall establish and maintain the Product in the library
structure, if any, described in the Documentation.
	 
	3.6	 	Licensee may outsource the implementation, development or operation of
the Product to a third party, or contract with a third party for
maintenance and support of the Product, provided that: (i) Licensee
provides prior written notice to ISO, (ii) said third party is not a
direct competitor of ISO, and (iii) said third party executes ISO’s
standard consulting and confidentiality agreements, and agrees to be bound
by the terms and conditions in this Agreement relating to the Product and
the use of the Product, including but not limited to those in sections 3.2
and 7 herein. Except as provided in the Escrow Agreement as a result of a
release of escrow, neither Licensee nor any such third party that gains
access to the Product directly or through the Licensee in accordance with
the terms of this Agreement shall tamper with, modify, adapt, translate,
reverse engineer, decompile, disassemble or create derivative works based
upon the Product. Licensee agrees to comply with all applicable laws in
connection with the use of the Product,
	 
	3.7	 	In the event that the Product to which this Agreement applies contains
any information owned by a third party, each party represents that it is
authorized to receive such information.
	 
	3.8	 	ISO agrees to provide Licensee with access to a copy of the ISO-owned
source code of the Product and all updates and
enhancements thereof, via an independent escrow agent, pursuant to the
terms and conditions of separate escrow agreements
	 
	 	 	(“Escrow Agreement”), which are currently in effect between ISO, ISO’s
designated escrow agent, and Compu-Quote Inc. and which are specifically included herein by reference and attached as
Exhibit D of this Agreement, copies of which have been provided to Licensee. ISO and Licensee shall share equally all costs
associated with the establishment and maintenance of said escrow
agreements on a pro-rata basis.

 

 

	4.	 	ANNUAL SUBSCRIPTION FEE, MAINTENANCE AND SUPPORT
	 
	4.1	 	In consideration of the ASF, ISO agrees to provide to Licensee:
	 
	4.1.1	 	A continuing nontransferable, nonassignable and nonexclusive license to
use the Product in accordance with the terms and conditions of this
Agreement except as otherwise provided herein; and

	4.1.2	 	Certain maintenance and support, as follows:
	 
	4.1.2.1	 	Access to customer support response line for telephone support for
operating questions and reporting of problems. Such telephone support
shall be provided weekdays 8:00 a.m. until 5:00 p.m. Eastern Standard Time
excepting ISO holidays. Should ISO at any time agree to supply extended
telephone support hours to any other licensee of ISO, then the support
hours above shall be similarly extended.
	 
	4.1.2.2	 	Corrections of Licensee documented system problems on a “best efforts”
basis according to the terms of Exhibit B.
	 
	4.1.2.3	 	Distribution to Licensee of Enhancements of Product for the purpose of
maintenance or corrections to the Product. If Licensee fails to install
any Enhancement within 180 days of delivery of the Enhancement to
Licensee, or if Licensee operates the Product in violation of this
Agreement, ISO shall have no obligation to continue support of the Product
and may immediately terminate this Agreement. New products are not
included as part of maintenance.
	 
	4.1.2.4	 	Updates of applicable Insurance Services Office, Inc. multistate and
state-specific base loss costs and rules as soon as commercially
reasonable after such updates become available, and at a minimum once per
year for the lines of business and states referenced in Exhibit A. ISO
will make every effort to implement changes by the second monthly release
after such change is received by ISO. This excludes major redesign by
Insurance Services Office Inc. of any line of business.
	 
	4.1.2.5	 	Support for the last previous version of the Product for eighteen
months following the general release of the most current version of the
Product.
	 
	4.2	 	The cost associated with installing Enhancements is Licensee’s
responsibility. ISO will be responsible for the cost of all
shipping related thereto.

	5.	 	CHARGES
	 
	5.1	 	For the Licensee’s authorization to use the Product during the term
hereof, Licensee promises and agrees to pay to ISO the fees as described
on Exhibit C.
	 
	5.2	 	Licensee recognizes that the ASF does not include Internet access, any
hardware, or the third party products which may be required to be licensed
by Licensee for Licensee to utilize the various capabilities of the
Product. Licensee is responsible for the costs and licenses to obtain
such hardware or third party products.
	 
	5.3	 	Licensee shall pay all undisputed amounts set forth in this Agreement in
the manner specified in Exhibit C. All undisputed amounts are stated and
payable in United States dollars. All undisputed amounts paid are
non-refundable, except as specifically provided for in this Agreement.
Licensee shall pay a late charge on any undisputed amount including costs
of collection (including reasonable legal fees), which remains unpaid
thirty (30) days after it is due. The late charge shall be computed daily
at the lesser of (i) one percent (1%) per month simple interest, or (ii)
the highest rate permitted by law. In the event Licensee fails to pay
all undisputed fees due hereunder within said 30-day period, ISO reserves
the right to stop work (including discontinuing ongoing warranty and
maintenance support for the Product) until all amounts due are paid in
full. The exercise of such right by ISO shall not be deemed to constitute
a default by ISO of this Agreement. In the event any fees due to ISO
pursuant to this Agreement are not paid within ninety (90) days of their
due date, ISO reserves the right to terminate this Agreement, repossess
the Product without prejudice, assert appropriate liens until all amounts
due are paid in full, and recover any extraordinary costs associated with
Licensee’s reuse of the repossessed Product.

 

 

	5.4	 	Licensee shall pay all tariffs and taxes assessed or levied by any
governmental entity that are now or may become applicable to this
Agreement or measured by payments made under it or are required to be
collected by ISO or paid by ISO to tax authorities. Licensee shall also
pay any interest or penalties on such tax; provided, however, Licensee
shall not be responsible for any interest or penalties resulting from
ISO’s failure to forward tax funds received from Licensee to the
applicable tax authority. This provision includes, but is not limited to,
sales, use, excise, gross receipt and personal property taxes, but does
not include taxes based solely upon the net income of ISO.
	 
	6.	 	ADDITION OF OTHER SUBSIDIARIES
	 
	 	 	If, at any time, Licensee forms or acquires an affiliated or subsidiary
property casualty insurance company, Licensee may add such affiliate or
subsidiary to Schedule 1 of this Agreement by notifying ISO in writing of
the formation or acquisition of said affiliate or subsidiary. An additional
ASF may be due in accordance with Exhibit C.
	 
	7.	 	CONFIDENTIALITY
	 
	 	 	ISO and Licensee agree that any and all Confidential Information of a party
(“the Disclosing Party”) is and shall remain the property of the Disclosing
Party, to be held in strict confidence by the other party (“the Receiving
Party”), and Receiving Party personnel, solely for Disclosing Party’s
benefit. Confidential Information shall not be used or otherwise disclosed
to any third party at any time, without the Disclosing Party’s prior written
consent except as may be required to be disclosed under applicable law, in
which event the Receiving Party will provide the Disclosing Party with
sufficient notice to seek a protective order or any remedy provided by law
or equity. “Confidential Information” includes all technical, business,
personnel, compensation or other information, including but not limited to
Licensee or client lists, policyholder information, claims information and
any information deemed to be such under any federal or state statute or
regulation concerning privacy, however communicated or disclosed to the
Receiving Party or Receiving Party personnel in the performance of this
Agreement, relating to past, present and future research, development and
business activities of ISO or Licensee. The Receiving Party hereby
acknowledges and agrees that, if Receiving Party shall seek to disclose,
divulge, reveal, report, publish, transfer or use, for any purpose
whatsoever, any Confidential Information, Receiving Party shall bear the
burden of proving that any such information was independently developed by
Receiving Party or had become publicly available without any breach of this
confidentiality obligation. Failure to mark any of the Confidential
Information as confidential or protected shall not affect its status as
Confidential Information. Confidential Information shall not include any
and all information disclosed by the Disclosing Party: (a) if the Receiving
Party can demonstrate from written records that such information was already
in the public domain or became publicly available through no breach of this
Agreement by the Receiving Party; (b) if the Receiving Party can
demonstrate from written records that the information was rightfully in the
Receiving Party’s possession without obligation of confidence prior to
receipt from the Disclosing Party or that the Receiving Party lawfully
obtained said information from a third party who was under no obligation of
confidence; (c) if the Receiving Party can demonstrate from written records
that such information was independently developed by employees of the
Receiving Party who had not had access to the Disclosing Party’s
Confidential Information; or (d) if such information is required to be
disclosed by the Receiving Party to comply with applicable law or a judicial
order or decree; provided, however, that the Receiving Party gives prior
written notice of such disclosure to the Disclosing Party and takes
reasonable and lawful actions to avoid and/or minimize the extent of such
disclosure. The parties acknowledge that a Receiving Party’s unauthorized
disclosure or use of Confidential Information may result in irreparable
harm. The Disclosing Party may seek a temporary restraining order or an
injunction to protect its Confidential Information. The Receiving Party
agrees in such case not to raise the defense of an adequate remedy at law.
This provision does not alter any other remedies available to the parties.
The obligations of this Section 7 are independent covenants and shall
survive the termination of this Agreement.
	 
	8.	 	WARRANTIES
	 
	8.1	 	The parties both warrant that they are corporations duly incorporated,
validly existing and in good standing under the laws of a state of the
United States; that they have all the requisite corporate power and
authority to execute, deliver, and perform this Agreement; that they have
duly authorized execution, delivery, and performance of this Agreement;
that they have and shall maintain any governmental license, authorization,
or qualification required for them to perform this Agreement; no approval,
authorization, or consent of any governmental or regulatory authority is
required to be obtained for them to execute, deliver and perform this
Agreement; and to their knowledge, there is no outstanding litigation,
arbitrated matter, or other dispute to which they are a party which, if
decided unfavorably to them, would reasonably be expected to have a
material adverse effect on that party’s ability to fulfill its respective
obligations under this Agreement.

 

 

	8.2	 	ISO warrants that it has the right to license to Licensee the use of the
Product. ISO warrants that the use of the Product by Licensee will not
infringe any United States patent, copyright or other intellectual
property right of any third party.
	 
	8.3	 	Licensee acknowledges that the programs of a Product may contain
Nonconformities. ISO warrants that, for ninety (90) days, it will
correct, at ISO’s sole cost and expense, the computer programs of the most
current or prior Release of a Product if they fail to operate in
accordance with Documentation to such programs so long as Licensee is
licensed to use the Product and has provided ISO with
notice of the Nonconformity. ISO further warrants that all such work will
be performed in a workmanlike manner.
	 
	8.4	 	EXCEPT AS SPECIFICALLY PROVIDED IN THIS SECTION (“WARRANTIES”), ISO
HEREBY DISCLAIMS WITH RESPECT TO ALL SERVICES, PRODUCTS, UPDATES OR OTHER
“DELIVERABLES” PROVIDED HEREUNDER, ALL EXPRESS, IMPLIED OR STATUTORY
WARRANTIES OR WARRANTIES ARISING BY CUSTOM OR TRADE USAGE, INCLUDING
WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, DESIGN, OR
FITNESS FOR A PARTICULAR PURPOSE. NO ORAL OR WRITTEN INFORMATION OR
ADVICE GIVEN BY ISO IN PERFORMING ITS OBLIGATIONS HEREUNDER WILL CREATE
ANY WARRANTY OR IN ANY WAY INCREASE THE SCOPE OF THE WARRANTIES MADE BY
ISO. ISO DOES NOT WARRANT THAT THE PRODUCTS ARE ERROR-FREE.
	 
	9.	 	INDEMNITIES
	 
	9.1	 	ISO agrees to defend Licensee against all claims arising from the actual
or alleged infringement by a Product of the intellectual property rights
of third parties and to indemnify Licensee for all cost, attorneys’ fees
and damages for which Licensee becomes liable for such alleged
infringement either by judgment or settlement, provided that Licensee,
after receipt of notice of a claim, notifies ISO in writing within such
time as not to prejudice the defense of the claim and permits ISO upon
request, and at ISO’s cost and expense, to assume and control the defense
or settlement thereof. Licensee agrees to cooperate with ISO in every
reasonable manner in the defense of such claim. In defending or settling
any such claim ISO may, at its sole option, elect to either (i) obtain for
Licensee the right to continue using such Product or part thereof which is
alleged to be infringing or (ii) replace or modify such Product or part
thereof so that such claim of infringement no longer applies. Licensee
shall immediately cease using the Release of the Product or part thereof
which was replaced or modified. If neither of these options is available
so as to provide Licensee with a substantially comparable substitute for
the Product originally licensed, Licensee may terminate its license for
the affected Product and, if such termination occurs during the Initial
Term, ISO shall pay Licensee a pro rata refund of the ASF with respect to
the Product as described herein. No such refund shall be payable after
the expiration of the Initial Term. In addition, Licensee will no longer
be responsible for the ASF. Licensee’s election hereunder shall not have
any effect on ISO’s defense and indemnity obligation as set forth in this
paragraph. ISO shall not be obligated to defend or indemnify against any
claim of infringement (i) resulting from Licensee’s additions to, changes
in, or modification of a Product, or (ii) resulting from Licensee’s use of
the Product in combination with non-ISO Products. This Section 9.1 sets
out ISO’s entire obligation to Licensee with respect to any claim of
infringement.
	 
	9.2	 	Licensee hereby agrees to indemnify, defend and hold harmless ISO, its
licensors, corporate affiliates and any employee, director, officer or
agent thereof from and against any and all liability to third parties,
including reasonable attorneys’ fees, costs and expenses, arising from (i)
Licensee’s improper use of the Product, whether alone or in combination
with other software or hardware of the Licensee (except to the extent such
usage is recommended or authorized by ISO), or (ii) modifications to the
Product made by a party other than ISO, its licensors, or parties
authorized by ISO in writing to make such modifications.
	 
	9.3	 	If a third party claims that a party to this Agreement is responsible for
(a) bodily injury (including death) or damage to real property or tangible
personal property (not including software or data) solely caused by the
premises, negligence, gross negligence, or willful misconduct of the other
party or its principals, officers, directors or employees or contractor
acting within the scope of employment or engagement, or (b) a violation of
labor or employment law or contract committed against the other party’s
personnel by the other party, the other party will defend the aggrieved
party against such claim at the other party’s expense and pay all cost,
damages and attorney’s fees that a court finally awards, or that are
provided for in settlement approved by the other party. This is the full
extent of one party’s rights and obligations to the other party regarding
any such injury.
	 
	10.	 	LIMITATIONS OF LIABILITY

The parties acknowledge that the following provisions have been negotiated by
them and reflect a fair allocation of risk:

	10.1	 	Neither party shall be liable to the other party for any claims for loss
or damage made by third parties except as set forth in

 

 

	 	 	Sections 9 and 10 herein.
	 
	10.2	 	Except for provisions relating to Product title, usage and
confidentiality, neither party shall be liable to the other for any breach
of this Agreement that the breaching party has corrected to the
satisfaction of the non-breaching party within thirty (30) days after
being notified in writing of said breach by the non-breaching party.
	 
	10.3	 	NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY, WHETHER IN CONTRACT,
TORT, WARRANTY OR OTHERWISE, FOR ANY SPECIAL, INDIRECT, INCIDENTAL,
PUNITIVE, EXEMPLARY, CONSEQUENTIAL OR INCIDENTAL DAMAGES (INCLUDING LOST
OPPORTUNITY, PROFITS, REVENUE, DATA, BENEFITS, BUSINESS INTERRUPTION, USE
OR ADVANTAGE), EVEN WHEN ADVISED OF THEIR POSSIBILITY BY THE OTHER PARTY.
	 
	10.4	 	EXCEPT WITH RESPECT TO LIABILITIES ARISING OUT OF EITHER PARTY’S
INDEMNIFICATION UNDER SECTION 8 OF THIS AGREEMENT, IN THE EVENT OF ANY
CLAIM BY EITHER PARTY AGAINST THE OTHER PARTY RELATED TO THIS AGREEMENT OR
ANY TRANSACTION UNDER THIS AGREEMENT, REGARDLESS OF THE BASIS OF THE
CLAIM, THE EXTENT OF THE OTHER PARTY’S LIABILITY TO THE AGGRIEVED PARTY
WILL BE LIMITED TO THE LESSER OF (I) THE ACTUAL LOSS OR DAMAGE SUFFERED OR
(II) THE AGGREGATE CONSIDERATION PAID FOR THE PRODUCT TO WHICH THE BREACH
RELATES OR (III) SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS ($750,000)
	 
	10.5	 	The obligations of this section are independent covenants and shall
survive the termination of this Agreement.

	11.	 	DISPUTE RESOLUTION

In the event any dispute arises related to this Agreement or any transaction
governed by this Agreement, senior executives of both parties, vested with
authority to settle the dispute, agree to meet and attempt in good faith to
resolve the dispute before either party may resort to judicial proceedings.
The meeting will be held reasonably promptly at the request of either party in
the offices of the party requesting the meeting. Each party will bear its own
costs related to said meeting.

	12.	 	FORCE MAJEURE

ISO shall not be liable or deemed to be in default for any delay or failure in
performance under this Agreement or interruption of service resulting, directly
or indirectly, from acts of God, civil or military authority, labor disputes,
shortages of suitable parts, materials, labor or transportation, or any similar
cause beyond ISO’s reasonable control.

	13.	 	TERM AND TERMINATION

	13.1	 	The term of this Agreement commences on its Effective Date and will
continue for sixty (60) consecutive, unless terminated as provided in
Sections 5.3, 13.2, 13.3, 13.4, and/or 13.5, hereof (“Initial Term”).

13.2 This agreement may be terminated by either party if the other party:

13.2.1 violates any material term or condition of this Agreement and, except
for those terms and conditions relating to payment of fees, fails to cure said
violation within thirty (30) days following receipt of written notice thereof
from the other party; or

13.2.2 terminates or suspends its business; (ii) becomes subject to any
bankruptcy or insolvency proceeding under federal or state law; or (iii)
becomes insolvent or becomes subject to direct control by a trustee, receiver
for all or any part of the property and assets of any such party.

13.3 Notwithstanding any provision herein to the contrary, and in addition to
its right to terminate this Agreement pursuant to Section 5.3, ISO will have
the right, in addition to any other rights and remedies available to ISO, to
terminate this Agreement effective immediately upon written notice to Licensee
in the event (i) of any breach by Licensee of any of Licensee’s obligations
relating to Section 2, Section 3 or Section 7, which breach remains uncured for
thirty (30) days following notice by ISO to Licensee of said breach or (ii)
that Licensee ceases to be a participating insurance company licensed by
Insurance Services Office Inc. for the lines of insurance and states as
described in Exhibit A.

13.4 On the expiration of the term, this agreement will automatically renew
for subsequent one (1) year terms (“Renewal Term”), unless either party to
this Agreement provides to the other party at least 3 months prior written
notice of its intention not

 

 

to renew. Effective at the start of the first Renewal Term and any subsequent
Renewal Term, Licensee shall continue to pay its then current ASF beginning
upon the effective date of the Renewal Term, subject to a three percent (3%)
annual cost of living increase, and any increases that may be required pursuant
to Section 6 above.

Renewal of this Agreement shall not operate to renew any warranty obligations
provided by ISO herein except for those relating to title and non-infringement.

13.5 Licensee agrees that upon termination of this Agreement, Licensee shall
cease using the Product. Licensee also warrants that it will make all
reasonable efforts to locate all Documentation associated with the Product and
shall return the original and all copies of such Product and Documentation of
which Licensee is aware within thirty (30) days after such termination.
Licensee shall have a continuing obligation to return to ISO any subsequently
discovered Documentation to such Product. Due to the nature of such Product
and the need for its protection as a trade secret and confidential proprietary
information, time is of the essence in its return, and in the event of
Licensee’s failure to do so within the time provided herein, Licensee agrees
that ISO shall be entitled to obtain (i) injunctive relief to require such
return, (ii) reasonable attorneys fees and costs incurred in obtaining such
injunctive relief and (iii) such damages as a court of competent jurisdiction
shall award. If the Product has been modified or merged with other computer
programs and it is impractical to separate and return such Product, Licensee
shall destroy the Product and all copies thereof in its modified or merged
state, and within 30 days of termination of this Agreement an officer of
Licensee shall certify to ISO in writing that the Product and all copies
thereof have been destroyed. Timely certification of destruction shall fulfill
Licensee’s obligation to return the Product. Failure to so certify destruction
shall constitute failure to return the Product. Licensee shall continue to
remain liable for all charges required under this Agreement which are unpaid as
of the date of termination.

	14.	 	GENERAL
	 
	14.1	 	All notices which are required to be given pursuant to this Agreement
shall be in writing and shall be delivered by certified mail, return
receipt requested, first class postage prepaid, or sent by overnight
express or similarly recognized overnight delivery with receipt
acknowledged. Notices shall be deemed to have been given at the time
delivered and shall be addressed as follows or to such other address as a
party may designate by proper notice hereunder:

	 	 	 	 	 
	

	 	If to ISO:
	 	ISO Strategic Solutions, Inc.
	

	 	 	 	6 Trafalgar Square
	

	 	 	 	Nashua, New Hampshire 03063
	

	 	 	 	Attn: Chuck Boodro

	 	 	 	 	 
	

	 	With a copy to :
	 	Joseph P. Giasi, Jr.
	

	 	 	 	Senior Vice President and General Counsel
	

	 	 	 	Insurance Services Office, Inc.
	

	 	 	 	545 Washington Blvd.
	

	 	 	 	Jersey City, New Jersey 07310

If to Licensee:

Specialty Underwriters’ Alliance, Inc.

8585 Stemmons Fwy

Suite 200, South Tower

Dallas, TX 75247

Attn: Courtney Smith

	14.2	 	Licensee promises not to disclose the terms and conditions of this
Agreement to any third party, except as required in the normal conduct of
Licensee’s business, or by applicable law, or as agreed to by ISO.
	 
	14.3	 	Except as required by law, each party will have the right to disclose
publicly through a news release the full name of the other party, the
location of the other party, and the product/outsourcing service licensed
by Licensee with the other party’s prior

 

 

	 	 	approval. Each party will not use the name or any trademarks, trade names
and service marks of the other party or its licensors, or the name of any
person associated with such other party or its licensors, for any purpose,
including without limitation advertising and marketing, without the prior
written consent of the other party.
	 
	14.4	 	This Agreement: (i) constitutes a fully integrated contract and states
the entire Agreement between the parties, (ii) supersedes and merges any
and all prior discussions, representations, demonstrations, negotiations,
correspondence, writings and other agreements and together states the
entire understanding and agreement upon which ISO and Licensee rely
respecting the subject matter of this Agreement; and (iii) may be amended
or modified only in a writing agreed to and signed by the authorized
representatives of the parties. Notwithstanding any acknowledgment by ISO
of a purchase order submitted by Licensee, any condition or provision in
any such purchase order or other memorandum of Licensee which is in any
way inconsistent with, or which adds to the provisions of this Agreement,
is null and void. It is specifically understood between the parties that
this Agreement and the Exhibits hereto are an independent agreement
governing solely the licenses and services provided herein. This Agreement
is neither governed by nor does it govern the terms of any other
agreement between the parties which currently exist or which may be
entered into in the future.
	 
	14.5	 	Neither ISO or Licensee will (i) attempt to induce an employee of the
other to terminate his or her employment or (ii) offer employment to a
former employee of the other during the 6 month period immediately
following the former employee’s termination. For purposes of this
paragraph, “employee” shall mean only the personnel of either party who
are substantially involved in the development, marketing, servicing,
distribution or use of a Product.
	 
	14.6	 	Neither party hereto shall be deemed to have waived any rights or
remedies hereunder unless such waiver is in writing and signed by the
authorized representative of the party. No delay or omission by either
party hereto in exercising any right shall operate as a waiver of such
right. A waiver of a right on any one occasion shall not be construed as
a waiver of such right on any future occasion. All rights and remedies
hereunder shall be cumulative and may be exercised singularly or
concurrently. Notwithstanding the foregoing, no action, with the exception
of an action for breach of the confidentiality obligations delineated in
this Agreement or transactions related to the indemnities set forth in
this Agreement, arising out of the breach of this Agreement or
transactions related to this Agreement may be brought by either party more
than 2 years after the cause of action has accrued, regardless of the
form.
	 
	14.7	 	The descriptive headings of this Agreement are intended for reference
only and shall not affect the construction or interpretation of the
Agreement. References to this Agreement are inclusive of Exhibits which
are specifically made applicable to this Agreement by their terms.
	 
	14.8	 	If any provision of this Agreement or the application thereof to any
party or circumstances shall, to any extent, now or hereafter be or become
invalid or unenforceable, the remainder of this Agreement shall not be
affected thereby and every other provision of this Agreement shall be
valid and enforceable to the fullest extent permitted by law.
	 
	14.9	 	Each party and its respective employees are independent contractors in
relation to one another with respect to all matters arising under this
Agreement. Nothing herein shall be deemed to establish a partnership,
joint venture, association or employment relationship between the parties.
Each party shall remain responsible for and shall indemnify and hold
harmless the other party from and against the withholding and payment of
all federal, state and local personal income, wage, earnings, occupation,
social security, worker’s compensation, unemployment, sickness and
disability insurance taxes, payroll levies or employee benefit
requirements (under ERISA, state law or otherwise) now existing or
hereafter enacted and applicable to their respective employees.
	 
	14.10	 	Each party will comply fully with all federal, state and local laws and
regulations relating to its obligations under this Agreement.
	 
	14.11	 	Except as otherwise provided herein with respect to the addition of an
Authorized Company, or additional businesses acquired by Licensee or to an
affiliate or a successor of substantially all of the business and
operations of the business unit utilizing or providing the services
hereunder, each party may not sell, assign or transfer, nor otherwise
convey any of its rights, duties or obligations under this Agreement. Any
attempted sale, assignment, transfer or conveyance in violation of the
above provision is null and void.
	 
	14.12	 	Licensee acknowledges that, with respect to services to be provided by
ISO at Licensee’s premises, Licensee’s timely provision of office
accommodations, facilities, equipment and complete and accurate
information from its officers, agents and employees (collectively
“Cooperation”) are essential for ISO to perform the services. ISO shall
not be liable for any deficiency in performing services if such deficiency
results from Licensee’s failure to provide reasonable Cooperation.
	 
	14.13	 	This Agreement shall be binding upon, and inure to the benefit of, the
parties hereto and their respective permitted transferees,

 

 

	 	 	successors and assigns.
	 
	14.14	 	No more than once in any 12 month period, ISO shall have the right to
review and copy all books of accounts and records of Licensee relating to
the subject matter of this Agreement, including but not limited to the use
of the Product by Licensee. Such review shall be at ISO’s expense and
shall be undertaken during business hours on reasonable notice to
Licensee.

ISO and Licensee each certify by their undersigned authorized representatives
that they have read this Agreement and agree to be bound by its terms and
conditions.

ISO STRATEGIC SOLUTIONS, INC.

	 	 	 
	By:
	 	/s/ Charles J. Boodro
	

	 	

	

	 	(Authorized Signature)
	

	 	(in non-black ink, please)
	 	 	 
	 
	 	Charles J. Boodro
	

	 	

	

	 	(Name)
	 	 	 
	 
	 	Authorized Representative
	

	 	

	

	 	(Title)
	 	 	 
	 
	 	May 20, 2004
	

	 	

	

	 	(Execution Date)

LICENSEE

	 	 	 
	By:

	 	/s/ Cortney C. Smith
	

	 	

	

	 	(Authorized Signature)
	

	 	(in non-black ink, please)
	 
	 	 
	

	 	/s/ Cortney C. Smith
	

	 	

	

	 	(Name)
	 
	 	 
	

	 	President
	

	 	

	

	 	(Title)
	 
	 	May 19, 2004
	

	 	

	

	 	(Execution Date)

 

 

SCHEDULE I

AFFILIATES AND SUBSIDIARIES

 

 

EXHIBIT A

PRODUCTS

RateAccess

DesignerAccess

Multi-state and state-specific versions of Insuranc Services Office Inc. loss
costs, rating, underwriting and forms rules for the following lines of
business:

Commercial Auto, Crime, Inland Marine, Commercial Property, General Liability,
BOP, Commercial Umbrella and CPP in all Insurance Services Office Inc. states.

 

 

EXHIBIT B

SERVICES

1. Supplying technical bulletins covering changes to the Product.

2. Correction of Nonconformities.

3. Licensee shall notify ISO via entry into the AscendantOne online issue
tracking system (‘Issues’) of Nonconformities. In addition, after logging
Severity 1 Issues (only) in the online tracking system, Licensee will contact
the ISO Help Desk via telephone to receive acknowledgement that the Issue has
been received. In order for ISO replicate the Issue, Licensee shall prepare
and provide to ISO process documentation, files, databases and all such other
data to permit ISO to simulate conditions similar to that present when the
Nonconformity was discovered. ISO shall act in good faith to initiate and
prosecute corrective measures for Nonconformities involving the Product.

4. System Problems.

System problems occur for a variety of reasons including application
software failure, operating system software failure, database software
failure, hardware failure, network failure and a variety of other causes.
Licensee is responsible for the initial problem diagnosis and must report
such problem accurately to ISO. When Licensee determines in its best
judgment that the cause is due to Products provided by ISO, the following
problem escalation and resolution process is to be followed.

Licensee will have the right to meet by telephone with the manager of
customer service at any time during normal ISO working hours to ask that
the problem be further escalated within ISO or to request on-site support
if that will aid in correcting the Nonconformity.

ISO’s Service Call hours are Monday through Friday between 8:00 a.m. and
5:00 p.m. Eastern Standard Time excluding ISO designated company
holidays.

Severity 1 Issues.

(i) Definition. “Severity 1” means Products are not functioning
resulting in a critical impact on Licensee’s operations. These are
Nonconformities which bring the operating system down or otherwise
totally disable the Licensee’s ability to operate normally, including
errors which prevent all useful work from being done, which disable major
functions from being performed, or which result in degraded operations
will be treated as “Critical”.

(ii) Resolution. Problem resolution for Severity 1 problems is defined
as a permanent fix or workaround that allows production to function until
a permanent correction is implemented.

(iii) Timeframe for Resolution. Licensee’s reported Issues will be
responded to by ISO’s service technicians within one (1) hour of receipt
of the Issue, such ISO response to be by personal telephone call and not
by recorded message. If Licensee’s answer to a proper ISO response is by
recorded message, this obligation of ISO shall be deemed satisfied.

(iv) ISO shall use best efforts to achieve resolution of Severity 1
problems as quickly as possible beginning within two (2) hours after
notice thereof from Licensee and, if not resolved, will work diligently
to achieve resolution. If not correctable by workaround, ISO shall,
within 24 hours of determination of the fact that a “work around” is not
available, apply dedicated resources to the task of resolving the
Nonconformity or reducing its impact until a permanent fix can be
delivered.

Severity 2 Issues.

 

 

(i) Definition. “Severity 2” means Products affect Licensee by (a)
degrading production performance, critical business processing or causing
severe disruption to normal production work flow;(b) causing development
activities to be down or disrupting critical development; or (iii)
disrupting critical testing.

(ii) Resolution. Problem resolution for Severity 2 problems is defined
as a permanent fix that will be scheduled for a permanent correction in
the earliest feasible product release. A workaround may be provided.

(iii) Timeframe for Resolution. Reported Issues will be responded to by
ISO’s service technicians within four (4) hours of the Issue being
reported, such ISO response to be by personal telephone call or email,
and not by recorded message. If Licensee’s answer to a proper ISO
response is by recorded message, this obligation of ISO shall be deemed
satisfied .

(iv) ISO shall use best efforts to work toward a plan of resolution of
Severity 2 problems within 2 business days after notice thereof from
Licensee.

Severity 3 Issues.

(i) Definition. “Severity 3” means Products affect Licensee by (a)
degrading non-critical business processing or causing moderate disruption
to normal production work flow or (b) causing development activities to
be impacted. Also, a non-critical problem in a test environment will be
considered a Severity 3 problem.

(ii) Resolution. Problem resolution for Severity 3 problems is defined
as a permanent fix that will be scheduled for a permanent correction in
the next scheduled product release.

(iii) Timeframe for Resolution. Reported Issues will be responded to by
ISO’s service technicians within one workday of the Issue being reported,
such ISO response to be by personal telephone call or email, and not by
recorded message. If Licensee’s answer to a proper ISO response is by
recorded message, this obligation of ISO shall be deemed satisfied.

(iv) ISO shall use best efforts to work toward a plan of resolution of
Severity 3 problems within 4 business days after notice thereof from
Licensee.

Severity 4 Issues.

(i) Definition. “Severity 4” means Products result in (i) Licensee’s
non-critical development activities being impacted, (ii) Licensee’s
non-critical development activities being degraded, (iii) Licensee’s
questions and support inquiries (iv) Documentation issues.

(ii) Resolution. Problem resolution for Severity 4 problems is defined
as a permanent fix that will be scheduled for a later permanent
correction, a workaround, or the answer to a question.

(iii) Timeframe for Resolution. Severity 4 Issues will be acknowledged
by ISO’s service technicians within one workday after receipt of the
Issue, such ISO response to be by a written Issue confirmation response.

(iv) ISO shall use best efforts to achieve resolution of Severity 4
problems within a mutually agreed period.

In the event it is determined that the reported problem was not due to the
Product itself, but was due to other problems, including without limitation:
(i) Licensee error in the use of the Product, (ii) additions to Products not
performed by ISO, (iii) Licensee’s failure to maintain the Products properly,
or (iv) Licensee’s failure to install required Product releases as instructed
by ISO, then Licensee shall pay ISO’s standard commercial time and materials
rates for all service provided plus ISO’s actual travel and living expenses.

 

 

EXHIBIT C

FEES

	1.	 	An ASF in an amount equal to $190,000.

	2.	 	On each annual anniversary of the Effective Date of this Agreement,
the ASF for the Product shall be increased by no more than three
percent (3%) of the then current ASF.

	3.	 	On each anniversary of the effective date of this agreement, ISO
will adjust the ASF by .10 per thousand of Direct Written Premium for
the lines of business and states listed in Exhibit A as reported to ISO
by Licensee.

	4.	 	Licensee shall pay twenty thousand dollars ($20,000) upon full
execution of this Agreement, Any remaining fees shall only be due and
payable conditioned upon Licensee raising at least two hundred million
dollars ($200,000,000) in a private or public offering of its shares
(“Financing”). If Licensee does not obtain Financing as of June 30,
2004 (“Financing Termination Date”), then this Agreement shall be
considered terminated immediately as of Financing Termination Date and
no additional fees shall be owed by Licensee.

Upon any such termination, the Product and all copies thereof, including
all documentation, in the possession of Licensee and any third party that
had access to the Product and documentation as a result of this
Agreement, shall promptly be returned to ISO.

 

 

EXHIBIT D

ESCROW AGREEMENT

 

 

ESCROW AGREEMENT

     This agreement (“Agreement”) is effective                                       , 2004 among
DSI Technology Escrow Services, Inc. (“DSI”), ISO Strategic Solutions, Inc.
(“Depositor”) and [Company] (“Preferred Beneficiary”), who collectively may be
referred to in this Agreement as the parties (“Parties”).

     A. Depositor and Preferred Beneficiary have entered or will enter into
that certain Agreement of even date hereof (referred to in this Agreement as
the License Agreement”) pursuant to which Depositor agreed to license software
to Preferred Beneficiary and to perform certain additional services for
Preferred Beneficiary as specified therein. Capitalized terms used in this
Agreement that are not specifically defined herein shall have the meaning
ascribed to them in the License Agreement.

     B. Depositor or its agents may utilize certain proprietary technology of
Depositor in the discharge of its obligations to Preferred Beneficiary under
the License Agreement

     C. Depositor desires to avoid disclosure of its proprietary technology
except under certain limited circumstances.

     D. The availability of the proprietary technology of Depositor is critical
to Preferred Beneficiary in the conduct of its business and, therefore,
Preferred Beneficiary needs access to the proprietary technology under certain
limited circumstances.

     E. Depositor and Preferred Beneficiary desire to establish an escrow with
DSI to provide for the retention, administration and controlled access of the
proprietary technology materials of Depositor.

     F. The parties desire this Agreement to be supplementary to the license
granted in the License Agreement pursuant to 11 United States Code, Section
365(n).

     G. To the extent there is any conflict between this Agreement and the
License Agreement regarding the subject matter addressed in this Agreement, the
terms of this Agreement shall govern.

     ARTICLE 1 — DEPOSITS

     1.1 Obligation to Make Deposit. Upon the signing of this Agreement by the
parties, Depositor shall deliver to DSI the proprietary technology and other
materials (“Deposit Materials”) required to be deposited by the License
Agreement or, if the License Agreement does not identify the materials to be
deposited with DSI, then such materials will be identified on Exhibit A. If
Exhibit A is applicable, it is to be prepared and signed by Depositor and
Preferred Beneficiary. DSI shall have no obligation to either party with
respect to the preparation, accuracy, execution or delivery of Exhibit A.

1

 

     1.2 Identification of Tangible Media. Prior to the delivery of the
Deposit Materials to DSI, Depositor shall conspicuously label for
identification each document, magnetic tape, disk, or other tangible media upon
which the Deposit Materials are written or stored. Additionally, Depositor
shall complete Exhibit B to this Agreement by listing each such tangible media
by the item label description, the type of media and the quantity. Exhibit B
shall be signed by Depositor and delivered to DSI with the Deposit Materials.
Unless and until Depositor makes the initial deposit with DSI, DSI shall have
no obligation with respect to this Agreement, except the obligation to notify
the parties regarding the status of the account as required in Section 2.2
below.

     1.3 Deposit Inspection. When DSI receives the Deposit Materials and
Exhibit B, DSI will conduct a deposit inspection by visually matching the
labeling of the tangible media containing the Deposit Materials to the item
descriptions and quantity listed on Exhibit B. In addition to the deposit
inspection, Preferred Beneficiary may elect to cause a verification of the
Deposit Materials in accordance with Section 1.6 below.

     1.4 Acceptance of Deposit. At completion of the deposit inspection, if
DSI determines that the labeling of the tangible media matches the item
descriptions and quantity on Exhibit B, DSI will date and sign Exhibit B and
mail a copy thereof to Depositor and Preferred Beneficiary. If DSI determines
that the labeling does not match the item descriptions or quantity on Exhibit
B, DSI will (a) note the discrepancies in writing on Exhibit B; (b) date and
sign Exhibit B with the exceptions noted; and (c) mail a copy of Exhibit B to
Depositor and Preferred Beneficiary. DSI’s acceptance of the deposit occurs
upon the signing of Exhibit B by DSI. Delivery of the signed Exhibit B to
Preferred Beneficiary is Preferred Beneficiary’s notice that the Deposit
Materials have been received and accepted by DSI. Other than DSI’s inspection
of the Deposit Materials, DSI shall have no obligation to the accuracy,
completeness, functionality, performance or non-performance of the Deposit
Materials.

     1.5 Representations of the Parties.

     Depositor represents as follows:

a. Depositor lawfully possesses all of the Deposit Materials
deposited with DSI;

b. With respect to all of the Deposit Materials, Depositor has the
right and authority to grant to DSI and Preferred Beneficiary the
rights as provided in this Agreement;

c. The Deposit Materials are not subject to any lien or other
encumbrance, however, any liens or encumbrances made after the
execution of this Agreement will not prohibit, limit, or alter the
rights and obligations of DSI under this Agreement;

d. The Deposit Materials consist of the proprietary technology and
other materials identified either in the Development and License Agreement or
Exhibit A, as the case may be; and

 2

 

e. The Deposit Materials are readable and useable in their current
form or, if any portion of the Deposit Materials is encrypted, the
decryption tools and decryption keys have also been deposited.

     1.6 Verification. Preferred Beneficiary shall have the right, at
Preferred Beneficiary’s expense, to cause a verification of any Deposit
Materials. Preferred Beneficiary shall notify Depositor and DSI of Preferred
Beneficiary’s request for verification. Depositor shall have the right to be
present at the verification. Verification determines, in different levels of
detail, the accuracy, completeness, sufficiency and quality of the Deposit
Materials. If a verification is elected after the Deposit Materials have been
delivered to DSI, then only DSI, or at DSI’s election, an independent person or
company selected and supervised by DSI and reasonably acceptable to both
Preferred Beneficiary and Depositor, may perform the verification. If DSI is
required to perform the verifications anywhere other than DSI’s facilities, all
expenses, including travel expenses, will be paid by Preferred Beneficiary. If
such verification by Preferred Beneficiary discovers that Deposit Materials
have not been deposited in accordance with this Agreement, Depositor shall
reimburse Preferred Beneficiary all costs and expenses associated with
conducting the verification.

     1.7 Deposit Updates. Unless otherwise provided by the License Agreement or
otherwise agreed in writing by the parties, Depositor shall update the Deposit
Materials within thirty (30) days of the end of each calendar month during the
term hereof in which: (i) a new release of the Product has been made generally
available to all of Depositor’s customers that are similarly situated to the
Preferred Beneficiary; or (ii) Depositor has delivered to Preferred Beneficiary
a Deliverable under the License Agreement. Such updates will be added to the
existing deposit. All deposit updates shall be listed on a new Exhibit B and
Depositor shall sign the new Exhibit B. Each Exhibit B will be held and
maintained separately within the escrow account. An independent record will be
created which will document the activity for each Exhibit B. The processing of
all deposit updates shall be in accordance with Sections 1.2 through 1.6 above.
All references in this Agreement to the Deposit Materials shall include the
initial Deposit Materials and any updates.

     1.8 Removal of Deposit Materials. The Deposit Materials may be removed
and/or exchanged only on written instructions signed by Depositor and Preferred
Beneficiary, or as otherwise provided in this Agreement.

     ARTICLE 2 — CONFIDENTIALITY AND RECORD KEEPING

     2.1 Confidentiality. DSI shall maintain the Deposit Materials in a
secure, environmentally safe, locked facility which is accessible only to
authorized representatives of DSI. DSI shall have the obligation to reasonably
protect the confidentiality of the Deposit Materials. Except as provided in
this Agreement, DSI shall not disclose, transfer, make available, or use the
Deposit Materials. DSI shall not disclose the content of this Agreement to any
third party. If DSI receives a subpoena or any other order from a court or
other judicial tribunal pertaining to the disclosure or release of the Deposit
Materials, DSI will immediately notify the parties to this Agreement unless
prohibited by law. It shall be the responsibility of Depositor and/or
Preferred Beneficiary to challenge any such order; provided, however, that DSI
does not waive its rights to present its position with respect to any such
order. DSI will not be required to disobey any order from a court or other
judicial tribunal. (See Section 7.5 below for

 3

 

notices of requested orders.) The obligations imposed by this Section 2.1
shall continue in full force and effect after termination or expiration of this
Agreement.

     2.2 Status Reports. DSI will issue to Depositor and Preferred Beneficiary
a report profiling the account history at least semi-annually. DSI will
provide copies of the account history pertaining to this Agreement upon the
request of any party to this Agreement.

     2.3 Audit Rights. During the term of this Agreement, Depositor and
Preferred Beneficiary shall each have the right to inspect the written records
of DSI pertaining to this Agreement. Any inspection shall be held during
normal business hours and following reasonable prior notice.

     2.4 Standard of Care. DSI shall exercise a professional standard of care
in carrying out the terms of this Agreement. DSI shall take no action in
connection with or relating to this Agreement and the Deposit Materials
hereunder, except in strict compliance with the terms and procedures provided
hereunder. DSI shall not be responsible for failure to fulfill its obligations
under this Agreement due to causes beyond its control. If DSI reasonably
anticipates that it will be unable, to perform any of its material obligations
under this Agreement, DSI shall notify Depositor and Preferred Beneficiary in
writing of the circumstances surrounding such failure and the cause of such
inability to perform its material obligations hereunder.

     ARTICLE 3 — GRANT OF RIGHTS TO DSI

     3.1 Title to Media. Simultaneous with the deposit of any Deposit
Materials, DSI shall be vested with the right to process, utilize and transfer
such Deposit Materials, subject to the terms and conditions set forth herein.
DSI shall not be vested with any ownership rights or title to the Deposit
Materials or the proprietary technology contained therein.

     3.2 Right to Make Copies. DSI shall have the right to make copies of the
Deposit Materials as reasonably necessary to perform this Agreement. DSI shall
copy all copyright, nondisclosure, and other proprietary notices and titles
contained on the Deposit Materials onto any copies made by DSI. With all
Deposit Materials submitted to DSI, Depositor shall provide any and all
instructions as may be necessary to duplicate the Deposit Materials including,
but not limited to, the hardware and/or software needed. Any copying expenses
incurred by DSI as a result of a request to copy will be borne by the party
requesting the copies. Alternatively, DSI may notify Depositor requiring its
reasonable cooperation in promptly copying the Deposit Materials in order for
DSI to perform this Agreement.

     3.3 Right to Transfer Upon Release. Depositor hereby grants to DSI the
right to transfer the Deposit Materials to Preferred Beneficiary upon any
release of the Deposit Materials for use by Preferred Beneficiary in accordance
with Section 4.5. Except upon such a release or as otherwise provided in this
Agreement, DSI shall not transfer the Deposit Materials.

 4

 

     ARTICLE 4 — RELEASE OF DEPOSIT

     4.1 Release Conditions. As used in this Agreement, “Release Condition”
shall mean any of the following conditions:

	a.	 	Depositor materially breaches the License Agreement and
fails to cure the breach within thirty (30) days after receiving
written notice of such breach from Preferred Beneficiary; or
	 
	b.	 	Depositor makes a general assignment for the benefit of
creditors, files a voluntary petition in bankruptcy for
liquidation under the bankruptcy laws; or
	 
	c.	 	a petition in bankruptcy for liquidation is filed
against Depositor and not dismissed within ninety (90) days; or
	 
	d.	 	a receiver or trustee is appointed to liquidate all or
a substantial portion of the property and assets of Depositor; or
	 
	e.	 	as otherwise expressly provided in the License
Agreement; or
	 
	f.	 	Depositor breaches this Agreement, including failing to
deliver the Deposit Materials on a timely basis as required, and
such breach is not cured within thirty (30) days after receipt of
written notice from Preferred Beneficiary.

Notwithstanding any other provision in this Agreement to the contrary, if
Preferred Beneficiary is entitled to withdraw the source code from the Escrow,
the license to the Product granted under the License Agreement shall continue
in perpetuity and Preferred Beneficiary’s rights to use the source code shall
be subject to the same terms and conditions as are applicable to the Product,
all as set forth in the License Agreement.

     4.2 Filing for Release. If Preferred Beneficiary believes in good faith
that a Release Condition has occurred, except for the passage of the applicable
cure period as referred to in Section 4.1(a), 4(c) or 4.1(f) above, Preferred
Beneficiary may provide to DSI written notice of the occurrence of the Release
Condition and a request for the release of the Deposit Materials. Preferred
Beneficiary’s notice shall include, if applicable, the date the cure period
referred to in Section 4.1(a), 4(c) or 4(f) expires. Upon receipt of such
notice, DSI shall provide, prior to the end of the third (3rd) business day
following DSI’s receipt of such notice, a copy of the notice to Depositor by
overnight commercial express mail.

     4.3 Contrary Instructions. In the case of a Release Condition referred to
in: (i) Sections 4.1(a), 4.1(c) or 4.1(f), Depositor shall have until the end
of the last business day of the applicable cure period as set forth in the
notice referred to in Section 4.2 above to deliver to DSI and Preferred
Beneficiary contrary instructions; or (ii) Sections 4.1(b), 4.1(d) and 4.1(e),
Depositor shall have from the date DSI mails the notice requesting release of
the Deposit Materials, ten (10) business days, to deliver to DSI and Preferred
Beneficiary contrary

 5

 

instructions (“Contrary Instructions”). Contrary Instructions shall mean
the written representation by an officer of Depositor that a Release Condition
has not occurred or has been cured. Upon receipt of Contrary Instructions, DSI
shall send, by the end of the third (3rd) business day following DSI’s receipt
of such notice, a copy to Preferred Beneficiary by overnight commercial express
mail. Additionally, DSI shall notify both Depositor and Preferred Beneficiary
that there is a dispute to be resolved pursuant to Section 7.3 of this
Agreement. Subject to Section 5.2 of this Agreement, DSI will continue to
store the Deposit Materials without release pending (a) joint instructions from
Depositor and Preferred Beneficiary; (b) dispute resolution pursuant to Section
7.3; or (c) order of a court of competent jurisdiction.

     4.4 Release of Deposit. If DSI does not receive Contrary Instructions
from the Depositor prior to the expiration of the period as set forth in
Section 4.3 and DSI has received from Preferred Beneficiary written
confirmation that the period in Section 4.3 has expired, then DSI shall
release, prior to the end of the third (3rd) business day following: (i) the
expiration of such period; or (ii) DSI’s receipt of Preferred Beneficiary’s
written confirmation that the period set forth in Section 4.3 has expired,
whichever is later, the Deposit Materials to the Preferred Beneficiary.
However, DSI is entitled to receive any fees due DSI before making the release.
Any copying expense will be chargeable to Preferred Beneficiary. This
Agreement will terminate upon the release of the Deposit Materials held by DSI.

     4.5 Right to Use Following Release. The Preferred Beneficiary’s use of
the Deposit Materials following a Release of the Deposit Materials to Preferred
Beneficiary shall be governed by the terms of the License Agreement.

     ARTICLE 5  —  TERM AND TERMINATION

     5.1 Term of Agreement. This Agreement shall become effective upon the
date hereof (the “Effective Date”), and shall end on the first to occur of the
following: (i) Depositor and Preferred Beneficiary jointly instruct DSI in
writing; or (ii) termination of this Agreement within thirty (30) days of
receipt of written notice from Preferred Beneficiary to DSI and Depositor. DSI
may terminate this Agreement for nonpayment in accordance with Section 5.2 or
resignation in accordance with Section 5.3.

     5.2 Termination for Nonpayment. In the event of the nonpayment of fees
owed to DSI, DSI shall provide written notice of delinquency to all parties to
this Agreement. Any party to this Agreement shall have the right to make the
payment to DSI to cure the default. If the past due payment is not received in
full by DSI within one (1) month of the date of such notice, then DSI shall
have the right to terminate this Agreement at any time thereafter by sending
written notice of termination to all parties. DSI shall have no obligation to
take any action under this Agreement so long as any payment due to DSI remains
unpaid.

     5.3 Termination by Resignation. DSI reserves the right to terminate this
Agreement, for any reason, by providing Depositor and Preferred Beneficiary
with 60-days’ written notice of its intent to terminate this Agreement. Within
the 60-day period, the Depositor must provide DSI with written instructions
authorizing DSI to forward the Deposit Materials to another escrow company
and/or agent or other designated recipient that has agreed to be bound by terms
and

6

 

conditions reasonably similar to the terms and conditions of this
Agreement. Upon receipt of such instructions, DSI shall promptly forward the
Deposit Materials to the other escrow company, agent or recipient, in
accordance with such instructions. If DSI does not receive said written
instructions within 60 days of the date of DSI’s written termination notice,
then this Agreement shall terminate and DSI shall deliver the Deposit Materials
to Preferred Beneficiary, with notice to the Depositor.

     5.4 Disposition of Deposit Materials Upon Termination. Subject to the
foregoing termination provisions, and upon termination of this Agreement, DSI
shall destroy, return, or otherwise deliver the Deposit Materials in accordance
with Depositor’s instructions. If there are no instructions, DSI may, at its
sole discretion, destroy the Deposit Materials or return them to Depositor.
DSI shall have no obligation to destroy or return the Deposit Materials if the
Deposit Materials are subject to another escrow agreement with DSI or have been
released to the Preferred Beneficiary in accordance with Section 4.4.

     5.5 Survival of Terms Following Termination. Upon termination of this
Agreement, the following provisions of this Agreement shall survive:

	a.	 	The representations and warranties of the parties (Section 1.5);
	 
	b.	 	The obligations of confidentiality with respect
to the Deposit Materials;
	 
	c.	 	The rights granted in the sections entitled Right
to Transfer Upon Release (Section 3.3) and Right to Use
Following Release (Section 4.5), if a release of the Deposit
Materials has occurred prior to termination;
	 
	d.	 	The obligation to pay DSI any fees and expenses due;
	 
	e.	 	The provisions of Article 7; and
	 
	f.	 	Any provisions in this Agreement which
specifically state they survive the termination of this
Agreement.

	 	 	ARTICLE 6 — DSI’S FEES
	 
	6.1	 	Fee Schedule. DSI is entitled to be paid its standard fees and expenses
applicable to the services provided as set forth on Exhibit D attached
hereto. Depositor shall pay all applicable annual, renewal, deposit,
release, service and other fees specified in Exhibit D in accordance with
the payment terms thereof. DSI shall notify Depositor at least sixty (60)
days prior to any increase in fees but such fees may not be increased by
more than 10% per year. For any service not listed on DSI’s standard fee
schedule, DSI will provide a quote prior to rendering the service, if
requested.
	 
	6.2	 	Payment Terms. DSI shall not be required to perform any service unless
the payment for such service and any outstanding balances owed to DSI are
paid in full. Fees are due upon receipt of a signed contract or receipt
of the Deposit Materials whichever is earliest. If invoiced fees are
not paid, DSI may terminate this Agreement in accordance with Section 5.2.

7

 

	 	 	ARTICLE 7 — LIABILITY AND DISPUTES
	 
	7.1	 	Right to Rely on Instructions. DSI may act in reliance upon any
instruction, instrument, or signature reasonably believed by DSI to be
genuine. DSI may assume that any representative of a party to this
Agreement who gives any written notice, request, or instruction has the
authority to do so. DSI will not be required to inquire into the truth or
evaluate the merit of any statement or representation contained in any
notice or document. DSI shall not be responsible for failure to act as a
result of causes beyond the reasonable control of DSI.
	 
	7.2	 	Indemnification. Depositor and Preferred Beneficiary each agree to
indemnify, defend and hold harmless DSI from any and all claims, actions,
damages, arbitration fees and expenses, costs, attorney’s fees and other
liabilities (“Liabilities”) incurred by DSI relating in any way to this
escrow arrangement unless such Liabilities were caused solely by the
adjudged negligence or willful misconduct of DSI.
	 
	7.3	 	Limitation of Liability. In no event will DSI be liable for any
incidental, indirect, special, exemplary, punitive or consequential
damages, including, but not limited to, damages (including loss of data,
revenue, and/or profits) costs or expenses (including legal fees and
expenses), whether foreseeable or unforeseeable, that may arise out of or
in connection with this Agreement; and in no event shall the collective
liability of DSI exceed ten times the fees paid under this Agreement. The
foregoing limitation of liability does not apply with respect to any acts
of gross negligence, personal injury claims, property damage claims
(excluding the Deposit), or intellectual property infringement. Nothing
in this section shall preclude any party from applying immediately to a
court of competent jurisdiction for equitable relief with respect to this
Agreement. Further, DSI hereby acknowledges that any material breach by
DSI, or threatened breach by DSI, would in fact cause irreparable harm to
the other parties for which there would be no adequate monetary remedy
available. The equitable remedy is limited to seeking a court order
regarding the disposition of the deposit materials. In the event of a
material breach of this Agreement by DSI, the parties agree that Depositor
or Preferred Beneficiary can only seek equitable relief for such breach
and Depositor or Preferred Beneficiary will not be entitled to seek money
damages for such breach.
	 
	7.4	 	Dispute Resolution. Any dispute relating to or arising from this
Agreement shall be resolved by arbitration under the Commercial Rules of
the American Arbitration Association. Three arbitrators shall be selected.
The Depositor and Preferred Beneficiary shall each select one arbitrator
and the two chosen arbitrators shall select the third arbitrator, or
failing agreement on the selection of the third arbitrator, the American
Arbitration Association shall select the third arbitrator. However, if
DSI is a party to the arbitration, DSI shall select the third arbitrator.
The arbitration will take place in New York, New York, U.S.A. Any court
having jurisdiction over the matter may enter judgment on the award of the
arbitrator(s). Service of a petition to confirm the arbitration award
may be made by First Class mail or by commercial express mail, to the
attorney for the party or, if unrepresented, to the party at the last
known business address.

8

 

	 	 	Nothing in this Section shall preclude any party from applying
immediately to a court of competent jurisdiction to adjudicate a claim
that a Release Condition has or has not occurred and to issue the
appropriate equitable relief if deemed appropriate by such court.
	 
	7.5	 	Controlling Law. This Agreement is to be governed and construed in
accordance with the laws of the State of New York, without regard to its
conflict of law provisions.
	 
	7.6	 	Notice of Requested Order. If any party intends to obtain an order from
the arbitrator or any court of competent jurisdiction which may direct DSI
to take, or refrain from taking any action, that party shall:

a. Give DSI at least two business days’ prior notice of the hearing;

b. Include in any such order that, as a precondition to DSI’s
obligation, DSI be paid in full for any past due fees and be paid
for the reasonable value of the services to be rendered pursuant to
such order; and

c. Ensure that DSI not be required to deliver the original (as
opposed to a copy) of the Deposit Materials if DSI may need to
retain the original in its possession to fulfill any of its other
duties. Provided, however, upon DSI’s receipt of any order
directing DSI to deliver the Deposit Materials to any party, DSI
may deliver a full, accurate, and complete copy of the Deposit
Materials and retain the original upon DSI’s showing of a
legitimate need to retain the original.

     ARTICLE 8 — GENERAL PROVISIONS

     8.1 Entire Agreement. This Agreement, which includes Exhibits described
herein, embodies the entire understanding among the parties with respect to its
subject matter and supersedes all previous communications, representations or
understandings, either oral or written. DSI is not a party to the License
Agreement between Depositor and Preferred Beneficiary and has no knowledge of
any of the terms or provisions of any such Agreement. DSI’s only obligations
to Depositor or Preferred Beneficiary are as set forth in this Agreement. No
amendment or modification of this Agreement shall be valid or binding unless
signed by all the parties hereto, except that Exhibit A need not be signed by
DSI, Exhibit B need not be signed by Preferred Beneficiary and Exhibits C and D
need not be signed.

     8.2 Notices. All notices, invoices, payments, deposits and other
documents and communications shall be given to the parties at the addresses
specified in the attached Exhibit C. It shall be the responsibility of the
parties to notify each other as provided in this Section in the event of a
change of address. The parties shall have the right to rely on the last known
address of the other parties. Any correctly addressed notice or last known
address of the other parties that is relied on herein that is refused,
unclaimed, or undeliverable because of an act or omission of the party to be
notified as provided herein shall be deemed effective as of the first date that
said notice was refused, unclaimed, or deemed undeliverable by the postal
authorities by mail, through messenger or commercial express delivery services.
Unless otherwise provided in this Agreement, all documents and communications
may be delivered by First Class mail.

9

 

     8.3 Severability. In the event any provision of this Agreement is found
to be invalid, voidable or unenforceable, the parties agree that unless it
materially affects the entire intent and purpose of this Agreement, such
invalidity, voidability or unenforceability shall affect neither the validity
of this Agreement nor the remaining provisions herein, and the provision in
question shall be deemed to be replaced with a valid and enforceable provision
most closely reflecting the intent and purpose of the original provision.

     8.4 Successors. This Agreement shall be binding upon and shall inure to
the benefit of the successors and assigns of the parties. However, DSI shall
have no obligation in performing this Agreement to recognize any successor or
assign of Depositor or Preferred Beneficiary unless DSI receives clear,
authoritative and conclusive written evidence of the change of parties.

     8.5 Waiver. Any term of this Agreement may be waived by the party
entitled to the benefits thereof, provided that any such waiver must be in
writing and signed by the party against whom the enforcement of the waiver is
sought. No waiver of any condition, or breach of any provision of this
Agreement, in any one or more instances, shall be deemed to be a further or
continuing waiver of such condition or breach. Delay or failure to exercise
any right or remedy shall not be deemed the waiver of that right or remedy.

     8.6 Regulations. Depositor and Preferred Beneficiary are responsible for
and warrant compliance with all applicable laws, rules and regulations,
including but not limited to customs laws, import, export, and re-export laws
and government regulations of any country from or to which the Deposit
Materials may be delivered in accordance with the provisions of this Agreement.

     8.7 Attorney’s Fees. In any litigation or other proceeding by which
one Party either seeks to enforce its rights under this Agreement (whether in
contract, tort or both) or seeks declaration of any rights or obligations under
this Agreement, the prevailing party who has proven by court decree, judgment
or arbitrator’s determination that the other party has materially breached its
representation or warranty under this Agreement, shall be awarded reasonable
attorneys’ fees, together with any costs and expenses, to resolve the dispute
and to enforce final judgment.

     8.8 No Third Party Rights. This Agreement is made solely for the benefit
of the Parties to this Agreement and their respective permitted successors and
assigns, and no other person or entity shall have or acquire any right by
virtue of this Agreement unless otherwise agreed to by all the parties hereto.

     8.9 Authority to Sign. Each of the Parties herein represents and warrants
that the execution, delivery, and performance of this Agreement has been duly
authorized and signed by a person who meets statutory or other binding approval
to sign on behalf of its business organization as named in this Agreement.

     8.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

10

 

	 	 	 
	ISO Strategic Solutions Inc.
	 	 
	 
	 	 
	By:

	 	By:
	 
	 	 
	Name:                                                                             

	 	Name:                                                                                                
	 
	 	 
	Title:                                                                             

	 	Title:                                                                                                
	 
	 	 
	Date:                                                                             

	 	Date:                                                                                                

	 	 	 
	

	 	DSI Technology Escrow Services, Inc.
	 
	 	 
	

	 	By:                                                                                                
	 
	 	 
	

	 	Name:                                                                                                
	 
	 	 
	

	 	Title:                                                                                                
	 
	 	 
	

	 	Date:                                                                                                

11

 

EXHIBIT A

MATERIALS TO BE DEPOSITED

ACCOUNT NUMBER                                       

Depositor represents to Preferred Beneficiary that Deposit Materials delivered
to DSI shall consist of the following:

One full complete copy of the most current edition of the Software
made available to Preferred Beneficiary under the Development and
License Agreement, including without limitation, all source and
object code thereto and all related programmer documentation to
the extent it exists.

	 	 	 
	DSI
	 	 
	 
	 	 
	By:

	 	By:
	 
	 	 
	Name:

	 	Name:
	 
	 	 
	Title:

	 	Title:
	 
	 	 
	Date:

	 	Date:

12

 

EXHIBIT B

DESCRIPTION OF DEPOSIT MATERIALS

Depositor Name:

Account Number                                                                                                                                                         

     Product Name Version

(Product Name will appear as the Addendum B Name on Account History report)

	 	 	 	 	 
	DEPOSIT MATERIAL DESCRIPTION:	 	 
	

	 	Quantity
	 	Media Type & Size                                        Label
	

	 	Description of Each Separate Item	 	 

	 	 	 
	                   

	 	Disk 3.5” or                    
	                   

	 	DAT tape                     mm
	                   

	 	CD-ROM
	                   

	 	Data cartridge tape                    
	                   

	 	TK 70 or                     tape
	                   

	 	Magnetic tape                    
	                   

	 	Documentation
	                   

	 	Other                                                          

PRODUCT DESCRIPTION:

Environment                                                                                                                                                                            

DEPOSIT MATERIAL INFORMATION:

Is the media or are any of the files encrypted? Yes / No If yes,
please include any passwords and the decryption tools.

Encryption tool name                                                                                                 Version                                       

Hardware required                                                                                                                                                         

Software required                                                                                                                                                         

Other required information                                                                                                                                            

	 	 	 
	By signing below, the undersigned
officer in his or her capacity as an
officer of Depositor, certifies in such capacity and not in his
personal capacity, that he or she
has personal knowledge that the
materials as delivered herewith are
true, accurate, complete, readable
or executable, as appropriate,
copies of the Deposit Materials
purported to be delivered

	 	DSI has inspected and accepted the
above materials (any exceptions are
noted above):

13

 

	 	 	 
	
herewith,
in accordance with the Escrow
Agreement pursuant to which this
delivery is made.

	 	 	 
	Signature                                                          

	 	Signature                                                          
	 
	 	 
	Print Name                                                          

	 	Print Name                                                          
	 
	 	 
	Date                                                          

	 	Date                                                          
	 
	 	 
	

	 	Addendum B#                                                          

Send materials to: DSI, 9265 Sky Park Ct., Suite 202, San Diego, CA 92123 (858) 499-1600

14

 

EXHIBIT C

DESIGNATED CONTACT

Account Number                                       

	 	 	 
	Notices, deposit material returns and

	 	Invoices to Depositor should be
	communications to Depositor

	 	addressed to:
	should be addressed to:
	 	 
	 
	 	 
	

	 	[Vendor]
	 
	 	 
	Designated Contact:

	 	Designated Contact:
	E-mail:

	 	E-mail:
	 
	 	 
	Verification Contact:
	 	 
	 
	 	 
	Notices and communications to

	 	Invoices to Preferred Beneficiary
	Preferred Beneficiary should be addressed to:

	 	should be addressed to:
	 
	 	 
	[Company]

	 	[Company]
	 
	 	 
	Designated Contact: General Counsel

	 	Contact:
	Telephone:

	 	Telephone:
	Facsimile:

	 	E-mail:

Requests from Depositor or Preferred Beneficiary to change the designated
contact should be given in writing by the designated contact or an authorized
employee of Depositor or Preferred Beneficiary.

15

 

EXHIBIT C

DESIGNATED CONTACT

	 	 	 
	Contracts, Deposit Materials and notices

	 	Invoice inquiries and fee remittances
	to DSI should be addressed to:

	 	to DSI should be addressed to:
	 
	 	 
	DSI Technology Escrow Services, Inc.

	 	DSI Technology Escrow Services, Inc.
	Contract Administration

	 	PO Box 45156
	9265 Sky Park Court, Suite 202

	 	San Francisco, CA 94145-0156
	San Diego, CA 92123
	 	 
	Telephone: (858) 499-1600

	 	(858) 499-1636
	Facsimile: (858) 694-1919

	 	(858) 499-1637
	E-mail: ca@dsiescrow.com
	 	 
	 
	 	 
	Date:
	 	 

16

 

EXHIBIT D

FEE AND SERVICES SCHEDULE

PREFERRED ESCROW AGREEMENT

	 	 	 
	First Year

	 	$2,400
	 
	 	 
	Renewal Year

	 	$1,350
	 
	 	 
	Each Additional Beneficiary

	 	$1650ea

	 	 	 
	Service Options
	 	 
	 
	 	 
	Unlimited deposit updates/replacements +

one additional storage unit

	 	$300/yr
	 
	 	 
	Individual deposit/updates replacements

	 	$200 each
	 
	 	 
	DeposiTrack updates (DSI contacts the vendor
and receives updated materials or certification that
the existing materials are current)

	 	$300/ea
	 
	 	 
	Custom Agreements

	 	see below1
	 
	 	 
	Release Filing Fee

	 	no fee2

	 	 	1 A $500 annual customization fee will be added when the contract changes increase DSI’s risk or modify its release, termination or update processes.
	 
	 	 	2 Direct expenses in excess of $300 will be chargeable.

17exv10w1w22

 

Exhibit 10.1.22

Master Software Sales
and Services Agreement (Americas)

The Effective Date of this Master Software Sales and Services Agreement
(“Agreement”) is the later date of execution of this Agreement unless otherwise
agreed here as the 19 day of May 2004. For due consideration and for the
mutual benefit of the executing parties, including SunGard Sherwood Systems
(US) Inc. (“Sherwood”) and the customer named in this Agreement (“Customer”),
Customer hereby contracts to license Sherwood software as set forth in the
charges schedule (“Order Form”) to this Agreement and documentation as defined
in the Software License hereto and any related service/s as set forth in any
attached Schedules and Sub-Schedules to this Agreement (all collectively
referred to as the “Product”) and the parties agree the following:

	1.	 	This Agreement has Schedules, and may have Sub-Schedules, attached, and
incorporated, as set forth in the Order Form, which include all or in
part: Schedule 1. Software Offering; Schedule 2. Non-Disclosure Agreement;
Schedule 3. Software License; Schedule 4. Support and Maintenance;
Schedule 5. Enhanced Support; Schedule 6. Professional Technical
Services; Order Form/Charges Schedule.
	 
	2.	 	Sherwood will offer Product as set forth in Schedule 1. Both parties
hereby agree to the terms of or have executed the Sherwood Non-Disclosure
Agreement. Licensing terms and conditions shall be found in Schedule 3.
and are manifestly incorporated with any Sherwood software purchase. The
Order Form hereto is an initial charges schedule that sets out the costs
of Customer’s initial purchases under this Agreement and any Product not
specifically listed in the Order Form shall not be entitled to nor enjoyed
by the Customer. Further Schedules and/or Sub-Schedules, changes and/or
any additions to this Agreement not specified in this Agreement at the
Effective Date may be subsequently agreed and incorporated by a mutually
executed written amendment or via a Change Order Form under the Sherwood
Change Control Process. Terms and conditions of this Agreement shall
prevail over any attached/ incorporated Schedule, agreement, or prior or
subsequent written communication or understanding in the event of a
conflict between the same.
	 
	3.	 	Customer shall keep Product and any operating manuals and other
documentation supplied under this Agreement strictly confidential, and
shall not disclose their content other than to employees, agents, or
contractors who require them for the sole purposes of Customer’s license
under this Agreement and who are aware of and agree to non-disclosure
obligations hereunder. Customer is responsible for its use of Product
under this Agreement and must not add to, modify, nor in any way interfere
with software source code without Sherwood’s prior written authorisation
or as allowed under this Agreement, nor allow anyone else (other than a
party authorised by Sherwood in writing) to do so.
	 
	4.	 	Delivery of Product shall be F.O.B. Sherwood’s offices (“Delivery”).
Both parties will use best efforts to deliver any service/s included with
Product and/or ready to use by any date specified and agreed by and
between the parties. Any date shall be treated as an estimate and
Sherwood does not accept any liability for failure to meet such a date.
Except as otherwise specified on the Order Form, undisputed payment is due
within net thirty (30) days of Sherwood’s invoice date in USD. If an
invoice is not paid during this period, Sherwood may charge daily interest
on late payments at a rate equal to the base-standard lending rate as
published in the Wall Street Journal. Unless otherwise stated in Order
Form, prices include Delivery only, and exclude Product install,
deployment, professional services, or the like, withholding tax and any
other taxes and/or duties (including import and export duties) for which
Customer is liable.
	 
	5.	 	Sherwood may not assign the Agreement to another party who is not an
affiliate of Sherwood without the prior written consent of Customer and
such consent shall not be unreasonably withheld or delayed. Sherwood may
transfer any of its rights or obligations under this Agreement to any
person/entity, but it is understood and agreed that when Sherwood uses a
sub-contractor to perform Services in relation to Schedule 6 herein, then
Sherwood will verbally or otherwise inform Customer. Customer shall not
charge, dispose, or encumber in any way nor assign or transfer any of its
rights or obligations hereunder without the express prior written consent
of Sherwood and such consent shall not be unreasonably withheld or
delayed.
	 
	6.	 	Customer is responsible for ensuring Product is suitable for its own
needs, and any warranty, statement, or promise regarding any Sherwood
Product is only valid if given in writing by Sherwood. Both parties agree
to comply with all applicable laws and regulations and shall indemnify the
other party against any liability and losses resulting from its failure to
do so.
	 
	7.	 	Sherwood does not exclude or limit liability for fraud, death, or
personal injury resulting from its own negligence (or that of its
employees whilst acting in the course of their employment). However,
except where expressly set forth herein, Sherwood shall have no liability
in contract, tort (including negligence), or otherwise for any loss of
revenue, business, contracts, anticipated savings, profits, data, or
information, or loss of use or value of any equipment or software, or for
any indirect or consequential losses and/or damages, even if Sherwood had
been advised, knew, or should have known the possibility of such loss or
damages. In addition to the foregoing, neither party shall be considered
to be in default hereto if performance or obligations are prevented or
delayed by causes beyond either party’s reasonable control. Subject to
the foregoing, any Sherwood liability to Customer in contract, tort
(including negligence), or otherwise arising in connection with the
Product or this Agreement is strictly limited to the aggregate amounts
paid by the Customer under this Agreement.
	 
	8.	 	Rights, powers, privileges, and remedies provided in this Agreement are
cumulative and are not exclusive of any rights, powers, privileges or
remedies provided by law or otherwise. A waiver by either party of its
rights hereunder shall not be binding unless contained in writing signed
by an authorised representative of the party waiving its rights (which
shall be the Global Head of Legal – General Counsel for Sherwood only for
Sherwood). The non-enforcement or waiver of any provision on one occasion
shall not constitute a waiver of such provision on any other occasions
unless expressly agreed in writing. Notice to either party will be
sufficiently made if sent by registered post or facsimile or hand delivery
to the contact for legal notice at the address/es set out hereto, or to
other such address/es as may be notified in writing from time-to-time.
	 
	9.	 	Changes/additions/modifications to any service/s and/or Product involving
further purchasing can be ordered by Customer via a Sherwood Change Order
Form executed by an authorised representative of Customer.
Changes/additions/ modifications to this Agreement must be made in
writing, and must be signed by both parties as an Amendment to this
Agreement and/or a Sherwood Change Order Form and copied to each party’s
contact for legal notice. No use of trade or other regular practice or
method of dealing between the parties hereto shall modify, interpret,
supplement, or alter in any manner the terms of this Agreement. If any
provision of this Agreement or any part of any provision is held
unenforceable, the remainder of the Agreement shall be valid and enforceable
to the full extent permitted by law. Termination of this Agreement for
whatever cause shall not affect rights, obligations, or liabilities of the
parties accrued prior to termination. Clauses 3, 9, 10, and 15 shall survive
termination of this Agreement for any reason whatsoever.
	 
	10.	 	Unless otherwise specified in the Order Form the term of this Agreement
(“Term”) shall commence on the Effective Date set forth above and with
respect to the License the Term is perpetual unless validly terminated by
either party. Failure by Customer to make undisputed payment due and
owing under this Agreement within thirty (30) days of written notice
thereof shall [except for Customer’s failure to pay any undisputed amount
payable with respect to a Renewal Maintenance Term] confer upon Sherwood
the right to terminate without further notice. Notwithstanding,
termination or expiration of this Agreement shall not release Customer
from any obligation to pay Sherwood undisputed sums outstanding under the
Term or otherwise. Upon termination or expiration of this Agreement,
Customer shall return at Customer’s expense all copies of software or
other tangible Product together with a certified statement by a duly
authorised officer of Customer stating that the same has been returned or
destroyed.
	 
	11.	 	Both parties agree to maintain and obtain, at its own expense,
governmental authorisations, registrations, and filings that may be
required to execute, perform, or enjoy the benefits of this Agreement, and
to comply with all regulations, laws, and other legal requirements that
apply to this Agreement including tax and foreign exchange legislation.
This Agreement is made under and shall be construed in accordance with the
Laws of the State of New York, and the parties agree to the exclusive
jurisdiction of New York Courts.
	 
	12.	 	Both parties shall not, directly or through one or more subsidiaries or
other controlled entities, solicit or endeavour to entice away from or
discourage from

STRICTLY
CONFIDENTIAL
Copyright SunGard 2004

(Master Software Sales and Services Agreement — Americas)

Page 1 of 3

 

 

Master Software Sales and Services Agreement (Americas)

	 	 	being employed or employ or attempt to employ any person who, during the
immediately preceding twelve (12) months, was employed by the other party
to this Agreement in the course of the relationship by and between the
parties. If one party is in, or threatens to, breach provisions of this
Clause, the other party to this Agreement shall be entitled to pursue all
such remedies as are available to it by law including (without limitation)
an application for a prohibitive injunction to restrain the occurrence
and/ or continuance of the breach. Without prejudice to the generality of
the foregoing, in the event a party to this Agreement elects to pursue a
claim for damages, the other party shall pay by way of agreed damages an
amount equal to the wages or salary (together with all associated employer
costs including without limitation pension contributions, motor vehicle
expenses and any other benefits or perks) paid by such party in respect of
any such employee for twelve (12) months preceding the date of the breach,
attorneys costs, and any other damages that may arise under such a claim.

STRICTLY
CONFIDENTIAL
Copyright SunGard 2004

(Master Software Sales and Services Agreement — Americas)

Page 2 of 3

 

 

Master Agreement Execution Page (Americas)

	 	 	 	 	 	 	 
	Accepted and Agreed:	 	Accepted and Agreed:
	 
	 	 	 	 	 	 
	SUNGARD SHERWOOD SYSTEMS (US) INC.
200 Business Park Dr.
Armonk, NY 10504	 	As an authorized representative of this Customer, I accept the terms and conditions of this Agreement and
applicable Schedules and Sub-Schedules
thereto:
	 
	 	 	 	 	 	 
	By

	 	/s/ G. Lavalle
	 	By:
	 	          /s/ Courtney S. Smith
	

	 	

	 	 	 	

	Name:

	 	G. Lavalle
	 	Name:
	 	     Courtney S. Smith
	Title:

	 	CEO
	 	Title:
	 	President
	Date:

	 	5/19/04
	 	Date:
	 	5/19/04
	 						
	ONLY AUTHORIZED REPRESENTATIVE OF SUNGARD
SHERWOOD SYSTEMS (US) INC ARE ALLOWED TO SIGN
THIS ORDER FORM; AUTHORISED REPRESENTATIVES
INCLUDE THE CEO AND CFO ONLY.	 	 	 	 

CUSTOMER’S ADDRESS FOR PRODUCT DELIVERY:

	 	 	 
	CONTACTS FOR LEGAL NOTICE:

	 	CUSTOMER’S CONTACT FOR LEGAL NOTICE:
	 
	 	 
	Corporate Counsel

	 	General Counsel
	SUNGARD SHERWOOD SYSTEMS

	 	Specialty Underwriters’ Alliance, Inc.
	33 St Mary Axe

	 	8585 Stemmons Fwy
	London EC3A 8AA

	 	Suite 200, South Tower
	Telephone +44 (0) 207 337 6000

	 	Dallas TX 75247
	Facsimile +44 (0) 207 337 1045
	 	 

STRICTLY
CONFIDENTIAL
Copyright SunGard 2004

(Master Software Sales and Services Agreement — Americas)

Page 3 of 3

 

 

Schedule 1.
Software Offering — ProCedeTM

Each Sherwood International Inc. (“Sherwood”) Customer has different software
requirements. Sherwood can offer a suite of software products to meet needs of
Customer; the following Schedule sets forth standard Sherwood terms and
conditions for Sherwood’s ProCedeTM software product, which is offered to
Customer as specified on the Sherwood Order Form and/or Change Order Form.

Offering Overview: ProCedeTM

ProCedeTM is a ceding administrative system running in a client-server
environment.

Administration by the End-user is done on the client-server platform in a
windows-based graphical environment. This includes the administering of
business partners and contacts, reinsurance contracts, accounting, cash
application and claims.

Batch processes such as bridges into the application for inward systems data,
extraction of data from the application for use by the reinsurance attachment
and calculation module, deposit premium, unearned premium calculations are done
on an application server or a main processing workstation.

The ProCedeTM application comprises functionality in the following areas; this
is a summary only, and further details of functional specifications are in
Sherwood’s Documentation for the ProCedeTM application:

	•	 	The ProCedeTM Enterprise Solution (PES) — ProCedeTM is an excess of
loss/pro rata ceded reinsurance administration system, having been
designed to integrate excess of loss and pro rata processing, both for
treaty and facultative coverage;
	 
	•	 	Inward business functions (underwriting and claims) allowing data
entry, adjustment, and review of direct business information required by
the ceding process;
	 
	•	 	Reinsurance functions allowing Customer to enter, adjust, and review
the terms of Customer’s reinsurance agreements, the details of each
reinsurer’s participation, and the rules for ceding to those reinsurance
agreements;
	 
	•	 	Accounting functions allowing Customer to enter bank deposit
information, cash receipts, cash disbursements, apply cash to open
balances, view open balances and entry of manual transactions at the
contract and reinsurer level;
	 
	•	 	Organization functions allowing Customer to enter and change specific
information for a business entity;
	 
	•	 	Reporting functions allowing Customer to run and view pre-defined
reports and create pro-forma reports and output to support Schedule F;
	 
	•	 	Automatic bridges from/to other systems; while ProCedeTM can run
stand-alone, many enterprises integrate ProCedeTM with their direct
system. This requires a minimum amount of information on policies and
claims to be bridged to ProCedeTM along wit inward premium and loss
transactions

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Copyright SunGard 2004

(Software offering — ProCedeTM)

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Schedule 1.
Software Offering — FrontTierTM

Each Sherwood Customer has different software requirements. Sherwood can offer
a suite of software products to meet the exact requirements of Customer; the
following Schedule sets forth standard Sherwood terms and conditions for
Sherwood’s FrontTierTM system software product, which is offered to Customer as
specified on the Sherwood Order Form and/or Change Order Form/s.

Offering Overview: the FrontTierTM system

The FrontTierTM system is a Sherwood solution for the property and casualty
insurance market. The FrontTierTM system consists of:

	•	 	the FrontTierTM Architecture and Development Toolset; and
	 
	•	 	the FrontTierTM Base Business Objects, consisting of the following:
	 
	•	 	FrontTierTM System Development Tools
	 
	•	 	FrontTierTM System Administration Tools
	 
	•	 	FrontTierTM Base Business Objects
	 
	•	 	FrontTierTM Primary Objects
	 
	•	 	FrontTierTM Smart Objects
	 
	•	 	FrontTierTM Objects Templates.

The FrontTierTM System Architecture and Development Toolset comprises the
“backbone” of any application built using the FrontTierTM Architecture, and a
toolset which can be used to enhance existing system functionality or to create
new objects.

The FrontTierTM Base Business Objects include processes, user interfaces,
external interfaces, batch processes, and database storage areas which may form
part of the Customer’s final FrontTierTM solution. The FrontTierTM Base Business
Objects section is made up of the following areas:

	•	 	Entity Administration;
	 
	•	 	Quote Administration;
	 
	•	 	Policy Administration;
	 
	•	 	Claims Administration;
	 
	•	 	Customer Services Manager;
	 
	•	 	Accounting Modules; and
	 
	•	 	Billing Module.

Full details of functional specifications are in Sherwood’s Documentation for
the FrontTierTM system as set out in the “SunGard Sherwood Systems
FrontTierTMFeature List”, dated January 21, 2004, version 1.0.

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Copyright SunGard 2004

(Software offering — FrontTierTM)

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SCHEDULE 2 MUTUAL CONFIDENTIALITY AGREEMENT

The parties to this Agreement have determined to establish terms governing
the confidentiality of certain information one party (“Owner”) may disclose to
the other party (“Recipient”). In consideration for each party agreeing to
disclose such information to the other party, the parties to this Agreement
agree as follows:

1. For purposes of this Agreement, “Confidential Information” shall mean
information, data or material deemed proprietary by the Owner and which may be
marked, or, if orally transmitted, designated as “Confidential” by the Owner
and not generally known by the public or by parties which are competitive with
or otherwise in an industry, trade or business similar to Owner. Confidential
Information also includes any information described above which the Owner
obtains from another party and which the Owner treats as proprietary or
designates in writing as Confidential Information, whether or not owned or
developed by the Owner. Confidential Information includes, but is not limited
to, the following types of information and other information of a similar
nature (whether or not reduced to writing): discoveries, ideas, concepts,
software in various stages of development, designs, drawings, specifications,
techniques, models, data, source code, object code, algorithms, documentation,
user manuals, diagrams, flow charts, consulting methods and techniques,
research, development, processes, procedures, “know-how”, marketing techniques
and materials, marketing and development plans, market analysis, customer names
and other information related to customers, price lists, pricing policies and
financial information, methods of production, use, operation and application,
invented, owned or developed by the Owner as it applies to and is incorporated
in Owner’s proprietary software, and any patents, copyrights, trademarks
existing now, for which applications may be pending or hereafter made, acquired
and granted for any of Owner’s software and any improvements, enhancements or
modifications thereto, Owner’s physical security system, access control
systems, specialized recovery equipment and techniques, and the details of the
Owner’s computer operations and recovery procedures. Confidential Information
shall further include data regarding business practices, pricing, product
philosophy, position relative to competitors, and review of actual deliverables
of consulting projects.

2. Recipient will use the same reasonable efforts to protect such Confidential
Information of the Owner as it uses to protect its own proprietary information
and data. Disclosure of the Confidential Information shall be restricted to
those individuals who are participating in the proposed transaction on a “need
to know” basis and who are advised of this Agreement and agree to be bound by
its terms, or as otherwise may be required by law.

3. Recipient shall not make any reproductions, disclosure or use of the
Confidential Information for its own benefit to the detriment of the Owner
except as follows:

	(a)	 	Recipient may use such Confidential Information furnished by the Owner in
furtherance of the purpose for which disclosure was made by the Owner to
Recipient and;
	 
	(b)	 	Recipient may use such Confidential Information in accordance with any
written authorization received from the Owner.

4. Recipient will not directly or indirectly attempt to reverse engineer,
decrypt, disassemble, decompile, decipher, reconstruct or re-orient the circuit
design, algorithms, logic or program code in any of the Owner’s products,
models or prototypes which contain Confidential Information and which are
provided pursuant to this Agreement. The Recipient will not receive any rights
by implication or otherwise in any Confidential Information received by
Recipient under this Agreement.

5. The limitations on reproduction, disclosure or use of the Confidential
Information shall not apply if, and neither party shall be liable for
reproduction, disclosure or use
of Confidential Information with respect to which, any of the following
conditions exist:

	a)	 	If, prior to the receipt thereof under this Agreement, it has been
developed independently by the Recipient, or was lawfully known to

the Recipient, or has been lawfully received by the Recipient from other
sources, provided such other source did not receive it due to a breach of an
agreement with the Owner, and Recipient knows of such breach.

(b) If, subsequent to the receipt thereof under this Agreement, (i) it is
published by the Owner or is disclosed by the Owner to others without a
restriction on its use and disclosure, or (ii) it has been lawfully obtained
by the Recipient from other sources which the Recipient reasonably believes
lawfully came to possess it.

(c) If the Recipient is required by law to make such disclosure, provided a
reasonable opportunity is first provided to the Owner to contest such
disclosure.

(d) Information publicly known that is generally employed by the trade,
business or industry at or after the time the Recipient first learns of such
information, or generic information or knowledge which the Recipient would
have learned in the course of its work in the trade, business or industry,
shall not be deemed part of the Confidential Information.

6. Because of the unique nature of the Confidential Information, the
Recipient understands and agrees that the Owner may suffer irreparable harm
in the event that the Recipient fails to comply with any of its obligations
hereunder and that monetary damages may be inadequate to compensate the
Owner for such breach. Accordingly, the Recipient agrees that the Owner, in
addition to any other remedies available to it under this Agreement or at
law or in equity for actual damages, shall be entitled to seek remedies of
specific performance, injunctive relief and other equitable relief to
enforce the terms of this Agreement.

7. During the discussions contemplated by this Agreement, neither the Owner
nor its affiliates will disclose to the Recipient or its affiliates any
information regarding United States patents which may be held or applied for
by or for the benefit of the Owner. To the extent that the Owner or its
affiliates wishes to disclose any patent information to the Recipient or its
affiliates, Owner and Recipient will first enter into an amendment to this
Agreement which contains a provision relating to the terms, conditions and
legal effect of such disclosure.

8. The obligations under this Agreement shall continue for so long as the
Owner treats the Confidential Information disclosed to Recipient hereunder
as confidential. Upon request, each party agrees to promptly return all
originals and copies of any of the Confidential Information either may have
obtained from the other.

9. The Owner shall not have any liability or responsibility for errors or
omissions in, or any business decisions made by Recipient in reliance on,
any Confidential Information disclosed under this Agreement.

10. This Agreement shall be construed and enforced in accordance with the
laws of the Commonwealth of Pennsylvania. This Agreement contains the full
and complete understanding of the parties with respect to the subject matter
hereof and supersedes all prior representations and understandings, whether
oral or written,

IN WITNESS WHEREOF, the parties hereunto set their respective hands and seals,
on the dates hereinafter set forth below.

	 	 	 	 	 	 	 
	SUNGARD SHERWOOD SYSTEMS (US) Inc	 	CUSTOMER	 	 
	 
	 	 	 	 	 	 
	Signature

	 	/s/ G. Lavalle
	 	Signature
	 	/s/ Courtney C. Smith
	

	 	
 
	 	 	 	
 
	 
	 	 	 	 	 	 
	Print Name

	 	G. Lavalle
	 	Print Name
	 	Courtney C. Smith
	 
	 	 	 	 	 	 
	Title

	 	CEO or CFO only (delete as appropriate)
	 	Title
	 	President
	 
	 	 	 	 	 	 
	Company Name

	 	SunGard Sherwood Systems (US) Inc
	 	Company Name
	 	SUA
	 
	 	 	 	 	 	 
	Business Address

	 	200 business Park Drive, Armonk, NY 10504
	 	Business Address
	 	8585 Stemmons Freeway, Dallas
	 
	 	 	 	 	 	 
	Date

	 	5/17/04
	 	Date
	 	5/19/04

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Page 1 of 2

 

save that nothing in this Agreement shall limit or exclude
liability for fraud or fraudulent misrepresentation. This Agreement shall be
binding upon and shall inure to the benefit of the successors and assigns of
the parties hereto.

STRICTLY CONFIDENTIAL

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Schedule 3 Software License Agreement (Americas)

This software license agreement (“License”) is effective upon SunGard Sherwood
Systems (US) Inc. (“Sherwood”) Delivery of Product. Product is provided to
Customer under the terms of this License and as set out in the applicable
Sherwood Master Software Sales and Services Agreement (“Master”) (together,
this License, a Schedule to the Master as defined herein and any other Schedule
to the Master, and the Master, are the “Agreement”). Definitions hereunder are
as defined in the Agreement.

	1.	 	Construction and Definitions

Terms defined in the Master have the same meanings in this License. In
addition,

“Documentation” means any documentary guide to Product and any other literature
relating thereto supplied by Sherwood (or an Indirect Supplier) from time to
time in any form whatsoever including but not limited to hard copy, electronic
mail, and/or any other form of communication (whether in use on the date of
this Agreement or not);

“Intellectual Property Right” means (a) patents, trade marks, service marks,
registered designs, applications for any of those rights, utility models, trade
and business names (including internet domain names and e-mail address names),
unregistered trade marks and service marks, copyrights, know-how, database
rights, rights in designs and inventions; and (b) rights of the same or similar
effect or nature as or to those in paragraph; and (c) in each case in any
jurisdiction;

“Key” means code which may be given to Customer by Sherwood to enable Product
to provide the level of functionality for which Customer has paid License Fees;

“License Fee” means fees payable by Customer in respect of and in due
consideration of Customer’s license rights to use Product as set in the
Sherwood Order Form;

“Master” means the Sherwood Master Software Sales and Services Agreement to
which this License is a Schedule and any and all other Schedules under the
same.

	2.	 	License

2.1 In consideration either of Customer’s payment of License Fees to Sherwood
or the Customer lawfully acquiring the Product from a reseller, systems
integrator, channel partner, distributor, and/or other third party (referred to
herein as an “Indirect Supplier”), Sherwood hereby grants Customer and its
subsidiaries, affiliates, non-exclusive, non-transferable license to use
Product in machine-readable object code form only (except as allowed under
this Agreement (“License”); this License authorises use strictly in accordance
with Agreement. Customer may grant access to the Product to its agents, and
other representatives or contractor(s) so long as such contractor(s) are
working directly for and on behalf of Customer within the scope of this
agreement and agree to the confidentiality obligations of Sherwood contained
herein.

2.2 No rights or Licenses are granted to the Customer expressly, by estoppel,
or by implication, with respect to any proprietary information or patent,
copyright, trade secret, or other Intellectual Property Right owned or
controlled by Sherwood, except as expressly provided for herein, or on the
Order Form.

2.3 Documentation is provided solely to support Customer’s authorised use of
Product in accordance with the Agreement. Except as permitted in Clause 3.1 or
4, Customer shall not use, copy, modify or distribute Documentation, or any
copy, adaptation, transcription, or merged portion thereof.

	3.	 	Covenants
	 
	3.1	 	Customer covenants it shall:

(a) not use Product except in accordance with Documentation;

(and such Documentation relating to Customer implementation shall be allowed to
be distributed to Customer’s clients and agents provided that the Customer’s
clients and agents comply with the confidentiality obligations contained herein
and shall not further distribute).

(b) not copy or, modify, or distribute Product (electronically or otherwise),
or any copy, adaptation, transcription, or merged portion thereof, other than
for back-up purposes expressly permitted by this Agreement, or for internal use
where the appropriate License Fee is paid;

(c) not copy configuration files generated by any Sherwood
Product onto devices or managed network interfaces other than those expressly
consented to by Sherwood by notice in writing; or

(d) transfer, lease, assign, or sub-license Product without Sherwood’s prior
written consent and such consent shall not be unreasonably withheld or delayed.

3.2 Upon written notice from Sherwood and failure of Customer to cure within
thirty (30) days, if the Customer uses, copies, or modifies Product or
transfers possession of any copy, adaptation, transcription, or merged portion
of Product to any separate company in any way not expressly authorised by
Sherwood in writing, Customer’s License hereunder will automatically terminate.

3.3 Customer will ensure Sherwood has access to Customer’s premises on five (5)
days’ prior notice and is able to inspect Product in any reasonable manner
during regular business hours to verify Customer’s compliance with the terms
hereof. Where Sherwood has reason to believe Customer may be using Product in
breach of Agreement, Sherwood may obtain (and Customer shall grant) access to
Customer’s premises and to Product with five (5) days’ notice to conduct an
audit. If an audit demonstrates a breach of Agreement, Customer shall pay the
costs of any audit and increased License Fee to reflect the actual number of
users involved, reasonably backdated, together with any interest due under the
Agreement.

3.4 Product is intended to operate in accordance with Documentation and
Sherwood’s instructions from time-to-time. Any failure by Customer strictly to
comply with the same (“Unauthorised Use”) or with the Non-Disclosure Agreement
(“Unauthorised Disclosure”) could lead to severe damage to Customer, a third
party, and/or Sherwood, and will constitute a breach of the Agreement.
Customer acknowledges the possibility of such damage and hereby agrees that any
Unauthorised Use shall be at Customer’s sole risk.

3.5 Save strictly as expressly permitted under applicable law or this
Agreement, Customer shall not reverse engineer, de-compile, disassemble, or
otherwise make any attempt to derive the source code to Product. Any attempt
to do so will automatically terminate all of Customer’s rights and License
under the Agreement.

	4.	 	Back-Up Copies

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Customer may make a reasonable amount of copies of Product in machine-readable,
object code form (with respect to Documentation, in paper form), for
non-productive back-up purposes only, provided that Customer reproduces and
includes Sherwood’s copyright notice and proprietary legend on each back-up
copy. Each back-up copy must be stored in a safe and secure location
accessible only to Customer. All copies of Product must be accounted for upon
Sherwood’s request. Customer shall instruct its employees, agents, and
contractors that making unauthorised copies of Product or any portion thereof,
or permitting use of Product other than in accordance with the Agreement,
constitutes a breach of copyright law, this License, and the Agreement.

	5.	 	Proprietary Protection

Nothing in this Agreement shall operate to transfer any Intellectual Property
Rights or other interest in Product to Customer. Customer agrees that it
neither owns nor hereby acquires any claim or right of ownership to Product or
Documentation or to any related Intellectual Property Right. The Customer owns
only magnetic tape, CD ROM, or other physical media on which Product is
recorded or fixed. Sherwood retains all right, title, and interest in and to
(i) Documentation, and (ii) all copies of Product recorded on the original
media, and (iii) all subsequent copies of Product at all times regardless of
the form or media in or which the original or other copies may subsequently
exist. This Agreement is not a sale of the original or any subsequent copy of
Product. Customer shall use its best efforts to prevent and protect the
contents of Product from unauthorised disclosure, use, dissemination, and/or
copying. For the avoidance of doubt it is understood and agreed that each
screen will include the appropriate copyright protection, and Sherwood logo as
mutually agreed by the parties.

	6.	 	Confidentiality

Customer acknowledges that any Keys provided to Customer, and ideas,
principles, and algorithms which underlie or are contained within Product,
including any interface information or information required for
interoperability, are (without limitation or exception) all confidential
information and valuable trade secrets of Sherwood and subject to the
confidentiality restrictions in the Non-Disclosure Agreement.

	7.	 	Warranty

7.1 Sherwood warrants that for a period of one (1) year after Delivery (the
“Warranty Period”), the media on which Product is delivered (if any) will be
free of defects in materials or workmanship (provided it is properly used in
accordance with this Agreement). If a defect in any CD ROM occurs during such
period the Customer may return the CD ROM (or other media on which Product was
supplied) and Sherwood will replace it.

7.2 Sherwood warrants that it has the right to license to Customer the use of
the Product. Sherwood warrants that the use of the Product by Customer will
not infringe any UK or US patent, copyright or other intellectual property
right of any third party.

7.3 Both parties respectively warrant that it is a corporation duly
incorporated, validly existing and in good standing under the laws of a state
of the United States; that it has all the requisite corporate power and
authority to execute, deliver, and perform this Agreement; that it has duly
authorized execution, delivery, and performance of this Agreement; that it has
and shall maintain any governmental license, authorization, or qualification
required for it to perform this Agreement; no approval, authorization, or
consent of any governmental or regulatory authority is required to be obtained
for it to execute, deliver and perform this Agreement; and to its knowledge,
there is no outstanding litigation, arbitrated matter, or other dispute to
which it is a party which, if decided unfavorably to it, would reasonably be
expected to have a material adverse effect on its ability to fulfil its
respective obligations under this Agreement.

7.4 Sherwood warrants that Product shall materially operate and conform to the
specifications, functions, and other descriptions and standards applicable
thereto as set forth in the Critical Functionalities (as defined herein). Any
unauthorized changes to the Product shall void the warranty provided under this
subsection with respect to that portion of the Product modified. If, at any
time, Customer discovers one or more defects or errors in the Product such that
the Product fails in any material respect to conform with the provisions of any
warranty contained in this subparagraph, Sherwood
shall correct such defect, error, or non-conformity by, among other things,
supplying Customer with such corrective codes and making such additions,
modifications, or adjustments to the Product as may be necessary to keep the
Product in operating condition in conformity with the Critical Functionalities.

7.5 Sherwood warrants to Customer that it has the full legal right to grant to
Customer the license granted under this Agreement, and that the Software and
Documentation, as and when delivered to Customer by Sherwood and when properly
used for the purpose and in the manner specifically authorized by this
Agreement, do not infringe upon any United States patent, copyright, trade
secret or other proprietary right of any Person. Sherwood shall defend and
indemnify Customer against any third party claim to the extent attributable to
a violation of the foregoing warranty. Sherwood shall have no liability or
obligation under this Section 7 unless Customer gives written notice to
Sherwood within ten (10) days (provided that later notice shall relieve
Sherwood of its liability and obligations under this Section 7 only to the
extent that Customer is prejudiced by such later notice) after any applicable
infringement claim is initiated against Customer and allows Sherwood to have
sole control of the defence or settlement of the claim. If any applicable
infringement claim is initiated, or in Sherwood’s sole opinion is likely to be
initiated, then Sherwood shall have the option, at its expense, to:

(a) modify or replace all or the infringing part of the Software or
Documentation so that it is no longer infringing, provided that the Software
functionality does not change in any material adverse respect; or

(b) procure for Customer the right to continue using the infringing part of the
Software or Documentation; or

(c) remove all or the infringing part of the Software or Documentation, and
refund to Customer the corresponding portion of the initial license fee paid by
Customer to Sherwood under this Agreement, less a reasonable rental charge
equal to one-sixtieth (1/60) of the initial license fee for each month of use,
in which case this Agreement shall terminate with respect to the Software or
part thereof removed.

7.6 Customer material. Customer warrants to Sherwood that Customer has the
full legal right to grant to Sherwood the right to use the designs, plans,
specifications or other materials provided by or on behalf of Customer for
inclusion in the Software or the Documentation (“Customer Material”) and that
the Customer Material does not infringe upon any United States patent,
copyright, trade secret or other proprietary right of any Person. Customer
shall indemnify and defend Sherwood (and any SunGard Affiliates providing
software or services under this Agreement) against any third party claim to the
extent attributable to a violation of the foregoing warranty Customer shall
have no obligation with respect to the indemnity in this Section 7 unless
Sherwood gives written notice to Customer within ten (10) days) (provided that
later notice shall relieve Customer of its liability and obligations under this
Section only to the extent that Customer is prejudiced by later notice) after
any applicable

STRICTLY CONFIDENTIAL

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infringement claim is initiated against Sherwood and allows
Customer to have sole control of the defence or settlement of the claim. If any
applicable infringement claim is initiated, or in Customer’s sole opinion is
likely to be initiated, then Customer shall have the option, at its expense,
to:

(a) modify or replace all or the infringing part of the Customer Material so
that it is no longer infringing, provided that the Customer Material’s
functionality does not change in any material adverse respect; or

(b) procure for Sherwood the right to continue using the infringing part of the
Customer Material; or

Customer hereby grants unlimited access to SunGard of Customer Material...

7.7 Product is provided “AS IS” without warranty of any kind unless set out in
this clause 7. All other warranties other than 7 herein as to Product, whether
statutory, express, or implied, are hereby expressly excluded to the fullest
extent permitted by law.

7.8 Remedies in Clauses 7 shall be Customer’s sole remedies with regard to any
aspect of Product.

8 Default

8.1 Should Customer fail to pay any undisputed fees or charges due under this
Agreement or fail to materially comply with any other obligation under this
Agreement or any other agreement with Sherwood (other than a failure to pay any
amount payable with respect to a Renewal Maintenance Term) or a voluntary
agreement is approved, or an administration order is made, or a receiver or
administrative receiver is appointed over any of Customer’s assets, or
undertaking or a resolution or petition to wind up Customer is passed or
presented (other than for purposes of a solvent amalgamation or
reconstruction), or if any circumstances arise which entitle a court or a
creditor to appoint a receiver, administrative receiver, or administrator, or
to present a winding-up petition or make a winding-up order (or equivalent
events occur in other jurisdictions), this shall be considered a default by
Customer and Sherwood may, at its option, in addition to other available
remedies, terminate this Agreement and/or disable Product, provided that it
first gives Customer thirty (30) days’ prior notice in order to permit the
Customer to cure Customer’s default.

8.2 Customer shall indemnify and hold Sherwood harmless from any loss, costs,
damages, expenses, or liability that may arise out of or in connection with any
breach by Customer of this Agreement.

9 Termination

9.1 It is understood and agreed that Customer has the right to terminate this
Order Form and Agreement without penalty at anytime up to 15 July 2004 if
Customer does not raise appropriate funding levels (estimated at $200,000,000)
to operate in a public or private equity financing. It is understood and
agreed that all monies paid to Sherwood prior to the said termination,
including but not limited to $75,000 and any Services provided by Sherwood are
non refundable.

Upon delivery of the Product, Company has thirty (30) days to notify Sherwood
in writing that the Product does not materially conform to the Critical
Functionalities (“Material Defects”). Upon such notification, Sherwood has one
hundred and eighty (180) days to correct the Material Defects. If, in the
opinion of Customer (based on commercially reasonable standards), the Product
continues to not materially conform to the Critical Functionalities, Customer
may terminate this Agreement within thirty (30) days written notice.

9.2 Upon termination of this Agreement (whether under this License, the Master,
or otherwise), but for the avoidance of doubt not upon termination of
Maintenance services), Customer’s License will automatically terminate, and
Customer shall within fifteen (15) days of termination return or destroy, as
requested by Sherwood, all copies of Product in its possession or control
(whether modified or unmodified), and all other materials pertaining to
Product, including all copies thereof. Customer shall certify its compliance
with such requirement upon Sherwood’s request.

9.3 Clauses 1, 5, 6, 9 and 10 shall survive termination of this Agreement for
any reason whatsoever.

10. Escrow

If and only if (a) a voluntary agreement is approved, or an administration
order is made, or a receiver or administrative receiver is appointed over any
of Sherwood’s assets, or undertaking or a resolution or petition to wind up
Sherwood is passed or presented (other than for purposes of a solvent
amalgamation or reconstruction), or if any circumstances arise which entitle a
court or a creditor to appoint a receiver, administrative receiver, or
administrator, or to present a winding-up petition or make a winding-up order
(or equivalent events occur in other jurisdictions), the bankruptcy or
insolvency of Sherwood occurs, or (b) the material diminution in functionality
of a future release of one or more of the modules comprising the Product after
written notice by and failure by Sherwood to materially cure such default
within ninety (90) days of such notice, or (c) a bug in the Product that causes
a material negative adverse effect on Customer’s business that is not
materially fixed by Sherwood after ninety (90) days written notice from
Customer or if the following three events have occurred: (i) Sherwood has
discontinued providing support services for the Software to Customer base
generally, including the ongoing support services provided by Sherwood to
Customer under this Agreement, (ii) Sherwood has not designated an assignee
(which Customer has consented to in accordance with Clause 5 of the Master ) to
assume Sherwood’s obligations to provide such ongoing support services, and
(iii) such discontinuation occurs during any period of time when Customer
fulfils its obligation of payment of undisputed Annual Support Fees according
to the Order Form, or then, upon a termination of the ongoing support services,
Customer may use the Source Code to make modifications, revisions and updates
to the Source Code which are/as reasonably necessary to support the Customer’s
continued use of the Software in accordance with this Agreement. Without
limiting Customer’s obligations under this Clause of this Agreement, Customer
shall keep the Source Code in a secure tape vault or vault-like (which may
include a vault-like environment on a hard-drive or server located on
Customer’s premises) environment on its premises and shall take all steps
necessary to protect the confidentiality of the Source Code, including, without
limitation, following the security procedures that Customer would follow with
respect to its own highly confidential information and any additional security
measures reasonably requested by Sherwood. Notwithstanding any provision of
this Agreement to the contrary, Customer shall not sell, market, sublicense,
license, distribute or otherwise grant to any person, company or entity
including any affiliate, outsourcer, vendor, consultant or partner, any access
to or right to use the Source Code or any version of the Source Code. However
it is understood and agreed that Customer may need to allow a sub-contractor
access to the Source Code but such sub-contractor will be under the same
obligation contained herein, including but limited to the confidentiality
provisions. Customer’s permitted use of the Source Code shall be at Customer’s
sole risk and expense and Sherwood shall

STRICTLY CONFIDENTIAL

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have no liability under any provision
of this Agreement with respect to any performance problem, claim of
infringement or other matter to the extent attributable to the use or any
modifications, whether made intentionally or accidentally, of the Source Code
by or through Customer.

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Schedule 4. Support and Maintenance Agreement

Each Sherwood Customer has different maintenance requirements. Sherwood can
tailor maintenance services to meet exact requirements of Customer; the
following however sets forth standard Sherwood maintenance term and conditions
and Customer’s exact order for maintenance will be as specified on the Sherwood
Order Form and/or Change Order Form.

1. Definitions

“End-Users” are Permitted Persons in numbers only as specified in Sherwood
Order Form or Change Order Form and subject to audit.

“Initial Maintenance Term” is an initial minimum period of twelve (12) months
commencing from Effective Date of the execution of a Sherwood Order Form and/or
Change Order Form

“Location” is the Customer facility/ies indicated on the Sherwood Order Form or
Change Order Form as appropriate for Product and service/s Delivery.

“Maintenance” is the services provided by Sherwood to Customer in accordance
with this Agreement.

“Nominated Customer Contacts” are defined as technical contacts within
Customer’s organisation who have been declared by Customer and accepted by
Sherwood as being eligible to use Sherwood’s Maintenance.

“Permitted Persons” are employees of Customer who work at Customer Location
that are aware of the terms and conditions of this Schedule and the Agreement
it falls under.

“Renewal Maintenance Term” is an additional consecutive periods of twelve (12)
months commencing from expiry of the Initial Maintenance Term.

2. Warranty Provisions

Except as expressly set out herein, no representation, warranty, condition,
undertaking, or other term, whether express or implied, arising by statute or
otherwise (including but not limited to any implied representations,
warranties, conditions, undertakings, or other terms as to satisfactory quality
or fitness for a particular purpose), as to condition, quality, performance or
suitability of Sherwood Maintenance or any results of Maintenance service/s is
given or assumed by Sherwood and all such representations, warranties,
conditions, undertakings, or other terms are hereby excluded except to the
extent such exclusion is prohibited by law.

3. Term and Termination

Beginning on the Effective Date and continuing for the Initial Maintenance Term
Sherwood shall provide the Maintenance services set forth in the Order Form for
the maintenance fees set forth in the Order Form. Thereafter, Sherwood shall
continue to offer such Maintenance services during the Renewal Maintenance Term
at the fees stated in this Agreement, unless Customer gives Sherwood notice of
its intent to terminate Maintenance at least ninety (90) days before the end of
the Initial Maintenance Term or any Renewal Maintenance Term. Maintenance fees
shall be as set forth in the Order Form. On an annual basis, by giving at least
ninety (90) days prior written notice to Customer, Sherwood may increase the
maintenance fees payable under this Agreement; provided that the increase in
the maintenance fees shall not exceed 5% .

In the event either party has committed a material breach of its obligations
under this Maintenance Agreement (other than Customer’s failure to pay any
undisputed amount payable with respect to a Renewal Maintenance Term) and shall
not have remedied it within thirty (30) days of receiving written notice from
the first mentioned party setting out the breach and requiring its remedy
within such thirty (30) day period, the non-breaching party may then terminate
with seven (7) days written notice following the party in breach not responding
within the period set forth herein.

Upon the effective date of termination of Maintenance services (“Support
Termination Date”), (i) Sherwood shall discontinue providing all on-going
Maintenance services, including Sherwood’s obligations under this Maintenance
Agreement, (ii) any Sherwood warranties under this Agreement shall cease to
apply for the period after the Support Termination Date, and (iii) Customer
shall be entitled to continue to use the Product until the expiration or
termination of the Term that is applicable to the Product and Sherwood shall
have no liability with respect to Customer’s use of the Product after the
Support Termination Date. Any termination of this Maintenance Agreement shall
not affect any accrued rights or liabilities of either party nor shall it
affect the coming into force or the continuance in force of any provision
hereof which is expressly or by implication intended to come into or continue
in force on or after such termination. Sherwood reserves the right in its
absolute discretion to suspend the supply of the Maintenance services where
payment by the Customer of any undisputed amount due to Sherwood (whether under
this or any other agreement) is overdue and Sherwood shall have no liability
with respect to Customer’s use of the Product until all undisputed past due
amounts and any applicable reinstatement fees are paid in full.

4. Customer Obligations

In order to enable Sherwood to perform Maintenance, Customer undertakes and
agrees at its own expense to: provide such access to Customer’s premises and
computer and such office accommodation and other facilities and resources as
may reasonably be required by Sherwood to properly offer Maintenance; provide
Sherwood promptly with all information and documentation reasonably required by
Sherwood; ensure that all information provided by Customer is correct and
accurate in all material respects; ensure in the interests of health and safety
that Sherwood’s personnel, in the event that in the offering of Maintenance on
Customer premises, they are at all times familiar with Customer’s premises and
safety procedures; and make available appropriate staff, Nominated Contacts or
otherwise, who are familiar with Customer’s programs and/or applications and
procure that its staff co-operates with Sherwood.

It is Customer’s sole responsibility to ensure that all service/s obtained from
third parties (and not provided by Sherwood or its assignees) meet Customer
requirements (including but not limited to specification, fitness for purpose,
operation, use) whether recommended by Sherwood or not. Customer will be
liable to reasonably compensate Sherwood for any additional expense incurred by
Sherwood through the Customer’s failure to follow the reasonable instructions
of Sherwood’s staff, or through the Customer’s failure to materially comply
with provisions herein.

5. Use of Experience/Information Gained

Nothing in this Agreement shall prevent Sherwood from using any experience
acquired or developed during the performance of this Agreement in the provision
of services for other Customers or on its own behalf, unless expressly provided
for in the mutually agreed work orders. Any information provided by Sherwood to
Nominated Contacts/Customer as to the expected results of the provision of
Maintenance is given for the purposes of guidance only.

6. Core Maintenance Service

Sherwood shall use best efforts to address any functional anomaly as may be
identified by Customer, within such period as may be reasonable having regard
to the nature, seriousness, and operational significance of the reported
non-conformity. The foregoing shall not include maintenance service/s in
respect of: defects resulting from any modifications of the current release of
the Sherwood software in question made by any entity other than Sherwood; any
version of Sherwood software other than the then current release; use of a
current release other than in accordance with instruction/s, written or
otherwise, of Sherwood; non-conformities caused by use of Sherwood current
release on other than specified and agreed equipment; operator error/s; any
bespoke work carried out in relation to Sherwood software.

Sherwood will: notify Customer of any corrections and make the same available
to the Customer to allow a reasonable time to test or agree to the correction
before it becomes operational; handle all telephone enquiries through
Sherwood’s Global Help Desk; ensure Maintenance response and correction service
shall be available during Support Hours for Customer Location in question;
undertake escalation procedures to ensure the allocation of appropriate
resources and skills having regard to the technical needs of the call.

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Sherwood shall make available quarterly or on reasonable demand an outstanding
corrections list for Customer. Non-conformities shall be categorised as
follows:

	1	 	Causes Sherwood software to be inoperable to a material degree;
	 
	2	 	loss of facilities in Sherwood software;
	 
	3	 	non-critical lack of functionality in Sherwood software which can’t be cured by End-User action;
	 
	4	 	non-functionality in Sherwood Software which can be avoided;
	 
	5	 	cosmetic errors to the Software

The Customer shall: use only Sherwood’s current release of software unless
otherwise agreed; ensure that software is used in a proper manner by competent
trained employees only or by persons under their direct supervision; not
request,, permit, or authorise anyone other than Sherwood to provide any
Maintenance services in respect of the software; promptly supply to Sherwood an
example of the output or processing in which any non-conformity has occurred,
together with related input and a detailed and complete explanation of the
circumstances; co-operate with best effort with Sherwood’s personnel in the
diagnosis of any non-functionality; in order to remedy any call, comply with
all instructions issued by Sherwood relating to the operation of software
including, without limitation, procedures relating to the input of data.

Customer will pay Sherwood at standard Sherwood consultancy rates as Sherwood
may amend from time-to-time for any work carried out in conjunction with a
suspected non-functionality which Sherwood determines (such determination being
reasonable in the circumstances) after investigation by Customer and Sherwood:
did not exist; did not fall within the definition/s stated in this provision;
was attributable to Customer failing to comply with the instructions of
Sherwood; arose in any of the circumstances set out above.

7. Enhancements

Sherwood may supply any enhancement and update to the current release of
Sherwood software as it may produce from time-to-time. In conjunction with the
same, Sherwood will revise and reissue where appropriate related documentation.
Customer may be entitled to the provision of such software enhancements as may
be offered by Sherwood to the Customer as optional and chargeable enhancements.

If the Customer requests Sherwood to provide advice, consultancy, amendments,
or enhancements to Sherwood software, the supply of such service/s shall be
subject to the provisions of an executed Sherwood Order Form and/or Change
Order Form and such terms and conditions as may be applicable under the same.

8. Releases

Sherwood shall support the then current release until a new software release is
made available to the Customer under this Schedule for Maintenance. Following
the Delivery of a new software release Sherwood shall maintain the preceding
release for a period of five (5) months unless otherwise mutually agreed in
writing by and between the parties. Customer shall make the new Sherwood
software release operational during said period. If Customer fails so to do
without the agreement of Sherwood, Sherwood shall have no further obligation to
supply Maintenance until such time as the new release is made operational by
Customer; notwithstanding, Customer’s payment obligations hereunder shall not
be affected.

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SCHEDULE 5. ENHANCED SUPPORT AGREEMENT

Provided that Customer has subscribed to Maintenance in Schedule 4, this
Schedule 5 Support Agreement and this Schedule 5 shall be incorporated herein.

The packaged support service offerings are summarised as follows:

	 	•	 	Response Target Service
	 
	 	•	 	Extended Support Hours
	 
	 	•	 	Operational Support

	 	 	Service Description 1
	 
	 	 	Service Description 2
	 
	 	 	Service Description 3

These Support offerings are described below.

Service Description 1 – Response Target Service

The Response Target Service builds on Maintenance to give discrete response
time targets for the priorities defined below. The escalation procedure is
described at the end of this Service Description.

Priority 1 – Show Stopper

Loss of application function such that the Product is completely unavailable to
users and cannot be used in production with no workaround immediately
available. For example, all terminals are inoperable, a critical machine is
completely down, or a total production system failure has occurred.

	 	 	 
	Initial call-back target

	 	Within one (1) hour within Support Hours
	 
	 	 
	Work commencement target

	 	Via telephone upon callback and/or via dial-up
access if required. On-site services, if
required, will commence the next business day.
	 
	 	 
	Resolution target

	 	Continuous work during the Support Hours (and
thereafter at Sherwood’s discretion) until the
lost Sherwood software functions are restored.
If defects or errors continue after the lost
functions are restored or if such restoration is
an interim fix only, the Support Services request
shall be automatically downgraded to a lower
priority as appropriate and handled accordingly.
	 
	 	 
	Escalation target

	 	Two (2) hours

Priority 2 – High

Loss of application function such that a substantial portion of the Sherwood
Product cannot be used in production and there is no workaround immediately
available. For example, a number of people are unable to work or are unable to
complete time critical tasks such as month end processing.

	 	 	 
	Initial call-back target

	 	Within two (2) hours within Support Hours
	 
	 	 
	Work commencement target

	 	Via telephone upon callback. If needed, on-site
or via dial-up access commencing next business
day.
	 
	 	 
	Resolution target

	 	Continuous work during the Support Hours (and
thereafter at Sherwood’s discretion) until the
lost Sherwood functions are restored unless a
higher priority Support Services request is
received from the Customer. If defects or errors
continue after the lost functions are restored or
if such restoration is an interim fix only, then
the Support Services request shall be
automatically downgraded to a lower priority as
appropriate and handled accordingly.
	 
	 	 
	Escalation target

	 	Six (6) hours.

Priority 3 – Medium

Loss of application function such that a substantial portion of the Product can
still be used in production although no workaround is immediately available.
For example some users are unable to use parts of the software, or aborted jobs
need restarting.

	 	 	 
	Initial call-back target

	 	Same business day for calls received prior to one
hour before the end of Support Hours. Next
business day on commencement of Support Hours for
calls received after one hour before the end of
Support Hours.
	 
	 	 
	Work commencement target

	 	Initial troubleshooting via telephone upon
callback. Additional required work (if any)
shall commence on same business day for calls
received at or prior to one hour before the end
of Support Hours and on next business day on
commencement of Support Hours for calls received
after one hour before the end of Support Hours.
	 
	 	 
	Resolution target

	 	Continuous work during Support Hours until the
lost Product function is restored unless a higher
priority Support Services request is received
from the Customer. If defects or errors continue
after the lost function is restored or if such
restoration is an interim fix only, the Support
Services request shall be automatically
downgraded to a lower priority as appropriate and
handled accordingly.
	 
	 	 
	Escalation target

	 	Two (2) days

Priority 4 – Standard

Loss of application function such that a substantial portion of the Product can
still be used in production and/or a workaround can be implemented by Customer
personnel with remote assistance from Sherwood.

	 	 	 
	Initial call-back target

	 	Same business day for calls received at or prior
to one hour before the end of Support Hours.
Next business day on commencement of Support
Hours for calls received after one hour before
the end of Support Hours.
	 
	 	 
	Work commencement target

	 	Initial troubleshooting via telephone upon
callback. Additional required work (if any)
shall commence on same business day for calls
received at or prior to one hour before the end
of Support Hours and on next business day on
commencement of Support Hours for calls received
after one hour before the end of Support Hours.
	 
	 	 
	Resolution target

	 	Work during Support Hours until workaround
implemented unless a higher priority Support
Services request is received. Once the
workaround has been implemented, the call shall
be automatically downgraded to Priority 5 as
appropriate and handled accordingly.
	 
	 	 
	Escalation target

	 	Ten (10) days

Priority 5 – General

General inquiries, requests for enhancements and/or reporting of defects that
do not

	 	 	 
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impact the users’ ability to continue production of work.

	 	 	 
	Initial call-back target

	 	Within two (2) business days
	 
	 	 
	Work commencement target

	 	As agreed in each instance
	 
	 	 
	Resolution target

	 	As agreed in each instance
	 
	 	 
	Escalation target

	 	Not applicable

Escalation Procedure

Support Services requests, which are not resolved before the escalation targets
described in the priority descriptions above, will be escalated through the
following levels

	 	 	 
	Level 1

	 	Help Desk – ftsupport@sungard.com

Tel. 1 877 777 8437
	 
	 	 
	Level 2

	 	Francoise.taylor@sungard.com

Tel. 905 366 3533
	 
	 	 
	Level 3

	 	Mike.robertson@sungard.com

Tel. 905 366 3279
	 
	 	 
	Level 4

	 	Angus.Muir@sungard.com

Tel. 905 366 3314
	 
	 	 
	Level 5

	 	Mike.Dropkin@sungard.com

9142737703

Service Description 2 – Extended Support Hours

Extended Support Hours extend the Support Hours to incorporate Support Services
performed outside of normal business hours during the week, at weekends and on
statutory holidays.

Extended Support Hours are comprised of two categories:

	 	•	 	On-Call Support Hours, where work is not performed, but Sherwood support personnel are on call and ready to react to perform support work if required.
	 
	 	•	 	Work Support Hours, where work is actually performed by Sherwood support personnel.

Extended Support Hours are normally provided as On-Call Support Hours. When a
Support Service is requested during On-Call Support Hours, Work Support Hours
commence within the agreed Extended Support Hours according to Response Target
Service guidelines. The exact nature of the Extended Support Hours required by
Customer is defined in the appropriate Order Form.

Service Description 3 – Operational Support

Sherwood offers support for the operation of the deployed Sherwood software in
a production environment the form of Operational Support. For example,
Operational Support services may include the initiation of electronic file
transfers or the monitoring of batch processes.

Each specific Operational Support task is defined in the appropriate Order
Form.

General Provisions regarding Support

The terms and conditions to which Customer is bound under Sherwood’s Standard
Support and Maintenance Schedule (Schedule 4) apply hereunder; specifically
applicable are the non-solicitation, warranty, termination, and Customer
obligation provisions. Nothing in this Support Agreement shall prevent
Sherwood from using any experience acquired or developed during the performance
of this Agreement in the provision of services for other Customers or on its
own behalf, except as considered confidential or proprietary information of
Customer under this Agreement, any statement of work or mutually executed
confidentiality agreement. Any information provided by Sherwood to Customer as
to the expected results of the provision of Support is given for the purposes
of guidance only.

This Support Agreement sets out Sherwood’s entire liability in relation to its
performance, non-performance, and offering of Support service/s. Sherwood
reserves the right in its absolute discretion to suspend the supply of Support
services where payment by Customer of any undisputed amount due to Sherwood
(whether under this or any other agreement) is overdue.

It is further understood and agreed that::

Sherwood shall provide technical support to Customer via telephone helpline
(the “Support Hotline”), according to the Response Target Service set forth
herein, between 9:00 a.m. Central time and 5:00 p.m. Central time, Monday
through Friday, exclusive of Public Holidays in the relevant jurisdiction in
which the Services are being provided holidays, (“Support Hours”).

Email Support. Sherwood shall provide technical support to Customer via email
(“Email Support”), according to the Error Remediation Process set forth below
during the Support Hours.

	 	 	 
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Schedule 6. PROFESSIONAL TECHNICAL SERVICES AGREEMENT

AGREEMENT FOR THE SUPPLY OF PROFESSIONAL SERVICES PURSUANT TO MASTER SOFTWARE SALES AND SERVICES AGREEMENT

The effective date of this Professional Services Schedule (“Services
Agreement”) is the date of execution of the applicable Order Form and/or Change
Order Form (“Effective Date”), and this Services Agreement is pursuant to the
Sherwood Master Software Sales and Services Agreement (and all Schedules and
any Sub-Schedules thereto) and Order Form by and between the parties (“Master
Agreement”), and binds the same under the terms and conditions as follows.

	1.	 	Definitions

	 	 	In this Services Agreement terms shall have the meanings set out in the
Master Agreement, and supplementary terms shall be defined as below:

	 	 	 
	“Business Day”

	 	means Monday – Friday excluding public holidays in the relevant
jurisdiction, from 9:00 – 17:00 in the time-zone where the
Services are being performed;
	 
	 	 
	“Deliverable/s”

	 	means any item including software (being product and documentation
and any/all associated services) delivered to Customer by Sherwood
under the terms of the Master Agreement and/or this Services
Agreement;
	 
	 	 
	“Minimum Term”

	 	means coterminous with the Term under the Master, or as
appropriate, Change Order Form/s;
	 
	 	 
	“Services”

	 	are as defined in the Master Agreement under Professional Services.

	 2	 	Supply of Services
	 
	2.1	 	The terms and conditions of the Master Agreement control and apply to
this Services Agreement.
	 
	2.2	 	The terms and conditions of the mutually executed Master Agreement shall
prevail over this Services Agreement, any attached or incorporated
Schedule, Sub-Schedule, and/or Change Order Form, other agreement,
annexure, subsequent communication or understanding in the event of a
conflict between the same, with the sole exception of a mutually executed
Master Software Sales and Services specific amendment to the Master
Agreement.

	2.3	 	Sherwood shall use reasonable endeavours to provide Deliverables in
accordance with any mutually agreed delivery schedule/s or milestones as
specified in the relevant Order Form and/or Change Order Form/s. Any and
all dates specified in communications of any kind including the
aforementioned by and between the parties shall be treated as estimate/s
and Sherwood does not accept any liability for failure to meet such
date/s, and any target date/s shall be extended by delays caused by
Customer, including, without limitation, delay or prevention of
installation and/or deployment of any kind. In the event installation
and/or deployment is delayed by Customer thirty (30) days or more,
Customer may be liable for reasonable delay, cancellation, and/or
termination charges.

	2.4	 	Material changes/additions/modifications to software shall require
execution of a new Change Order Form; notwithstanding, Customer may
request changes to scope of a mutual project plan, statement of work,
future specifications map, or the like, in so much as such changes are not
material to Sherwood’s offering purchased for due consideration by
Customer.

	2.5	 	In the event of a request for a material change/addition/modification to
Sherwood software and/or Deliverable/s, Customer may request and Sherwood
may provide a written response to the request, indicating cost
implications and any other anticipated effect. If Customer is offered and
executes a subsequent Change Order Form, Customer for due consideration
may then enjoy the benefits of the desired request.

	 3	 	Fees for Professional Services

	3.1	 	Customer shall pay Sherwood’s list time and materials rate for all
programming, coding, consulting, and like technical services, educational
and training programs, and all materials provided to Customer, unless
otherwise agreed in a mutually executed writing under this Services
Agreement.

	3.2	 	In calculating amount/s payable in respect of Services, Sherwood will
ensure that its personnel complete time sheets recording time spent in
supplying Services and those time sheets will be used to calculate the
time charge to which monthly invoicing relates.

	3.3	 	Sherwood’s daily rates are calculated on the basis of a Business Day;
Sherwood shall be entitled to charge on an hourly basis for part days
worked by its personnel.
	 
	3.4	 	Sherwood shall not vary its rates during the Minimum Term but shall be
entitled to vary its time and materials rates thereafter on giving not
less than thirty (30) days written notice to Customer. Such rates shall
not increase more than five (5)% annually.

	3.5	 	Customer shall pay all reasonable chargeable expenses and disbursements,
which may be incurred by Sherwood personnel on behalf of Customer.
Chargeable expenses and disbursements shall include, but shall not be
limited to, reasonable travel and living costs, supplies, computer
services, telephone charges, copying charges, and all shipping charges for
material provided to Customer.

	 	 	 
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	 4	 	Customer Obligations

	4.1	 	In order to enable Sherwood to perform Services hereunder, Customer
undertakes and agrees at its own expense to:

	 	4.1.1	 	provide such access to the Customer’s premises and computer and such
office accommodation and other facilities and resources as may reasonably
be required by Sherwood; and
	 
	 	4.1.2	 	provide Sherwood in a reasonable timeframe with all information and
documentation reasonably required by Sherwood; and
	 
	 	4.1.3	 	ensure that all information provided by the Customer is correct and
accurate in all material respects; and
	 
	 	4.1.4	 	ensure in the interests of health and safety that Sherwood’s personnel,
while on Customer premises, are at all times familiar with Customer
premises and safety procedures; and
	 
	 	4.1.5	 	make available appropriate staff who are familiar with Customer’s
programs and/or applications and ensure that its staff co-operate with
Sherwood;
	 
	 	4.1.6	 	allocate a suitably qualified member of staff and deputy as persons with
whom Sherwood shall liaise.

	4.2	 	It is Customer’s sole responsibility and at Customer’s sole liability to
ensure that all technical, development, enhancement, support, maintenance,
and similar services obtained from any and all third parties (i.e., not
provided by Sherwood or its assignees) meet its requirements (including
but not limited to specification/s, fitness for purpose,
functionality/ies, operation, use, coding, enhancements, and bespoke
development needs, etc.) whether recommended by Sherwood or not. In no
way shall undisputed amounts due and payable to Sherwood be effected by
the participation of such third parties in the delivery of Customer
solution/s e.g., software, networking, services, consulting, and the like
that are not a list Sherwood offering. Customer will be liable to
compensate Sherwood for any reasonable additional expense incurred by
Sherwood through Customer’s material failure to follow reasonable
instructions of Sherwood’s staff, or through Customer’s failure to
materially comply with provisions of the Master Agreement and this
Services Agreement hereunder.

	4.3	 	Both parties will indemnify the other party and keep the other party
fully and effectively indemnified against all costs, claims, demands,
expenses, and liabilities of whatsoever nature arising out of or in
connection with any claim that the use by such other party of any
information or material supplied for the purpose of enabling Sherwood to
prepare Deliverable/s infringes the intellectual property rights (of
whatever nature) of any third party.

	 5	 	Scope of Customer’s Rights in Relation to Deliverable/s

	5.1	 	All property, rights, title, and interest in Deliverable/s and any
associated or other Documentation produced as a result of the software,
Product, and any and all related Service/s and Intellectual Property
Rights therein is vested absolutely in Sherwood and Customer shall have no
right title or interest therein except as agreed herein or as expressly
agreed in writing by both parties on a work order(s).

	5.2	 	Deliverable/s shall be used only for the processing of data in the course
of Customer’s business but not for the provision of data processing
services to any third party save with the express prior written agreement
of Sherwood.

	5.3	 	Nothing in this Agreement shall prevent Sherwood from using any
experience acquired or developed during the performance of this Agreement
in the provision of software, Product, and/or Services for other clients
or on its own behalf.

	 6	 	Warranty in Relation to Services

	6.1	 	Sherwood warrants that it will use reasonable care in the provision of
Services. In the event Customer is not fully satisfied on reasonable
grounds with the performance of Services, it may give notice to Sherwood
within twenty-eight (28) days of the provision of such Service setting out
details of the variance from Service/s it was expecting. Sherwood shall
at the option of Customer:

	 	6.1.1	 	within a reasonable time seek to rectify, at its discretion, any aspect of Service/s it is thus notified of; and/or
	 
	 	6.1.2	 	reduce its charges against any anomaly in Service/s it determines were extant.

	6.2	 	This Clause 6 sets out Sherwood’s entire liability in relation to its performance or non-performance of Services.

	6.3	 	Without prejudice to the provisions of the Master Agreement or this
Services Agreement, Sherwood reserves the right in its absolute discretion
to suspend supply of Services where payment by Customer of any undisputed
amount due to Sherwood (whether under this or any other agreement) is
overdue or if Customer is in material breach of any of its obligations
hereunder.

	 7	 	Termination

Notice of termination, which is given during the currency of the Order Form or
Change Order Form/s, shall not take effect until the completion of the
Service/s specified therein.

	 	 	 
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