Document:

Exhibit
10.1

 

AEROVIRONMENT, INC.

 

2006 EQUITY INCENTIVE PLAN

 

LONG-TERM COMPENSATION AWARD GRANT NOTICE AND

LONG-TERM COMPENSATION AWARD AGREEMENT

 

AeroVironment,
Inc., a Delaware corporation (the “Company”), pursuant
to its 2006 Equity Incentive Plan (the “Plan”), hereby
grants to the individual listed below (“Participant”), a
long-term compensation award (the “Award”).  The Award is an Other Stock-Based Award
pursuant to the terms of the Plan.  This
Award is subject to all of the terms and conditions as set forth herein and in
the Long-Term Compensation Award Agreement attached hereto as Exhibit A
(the “Long-Term
Compensation Award Agreement”) and the Plan, each of which are
incorporated herein by reference.  Unless
otherwise defined herein, the terms defined in the Plan shall have the same
defined meanings in this Grant Notice and the Long-Term Compensation Award
Agreement.

 

	
  Participant:

  	
   

  
	
   

  	
   

  
	
  Grant Date:

  	
   

  
	
   

  	
   

  
	
  Goal Bonus Amount:

  	
   

  

 

By
his or her signature, Participant agrees to be bound by the terms and conditions
of the Plan, the Long-Term Compensation Award Agreement and this Grant
Notice.  Participant has reviewed the
Long-Term Compensation Award Agreement, the Plan and this Grant Notice in their
entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Grant Notice and fully understands all provisions of this Grant
Notice, the Long-Term Compensation Award Agreement and the Plan.  Participant hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Committee
upon any questions arising under the Plan, this Grant Notice or the Long-Term
Compensation Award Agreement.

 

	
  AEROVIRONMENT, INC.

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Print
  

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Address:

  	
  181
  Huntington Drive, Suite 202

  	
   

  	
  Address:

  	
   

  
	
   

  	
  Monrovia,
  CA  91016

  	
   

  	
   

  	
   

  

 

 

EXHIBIT A

 

TO LONG-TERM COMPENSATION AWARD
GRANT NOTICE

 

LONG-TERM COMPENSATION AWARD AGREEMENT

 

Pursuant
to the Long-Term Compensation Award Grant Notice (the “Grant
Notice”) to which this Long-Term Compensation Award Agreement
(this “Agreement”) is attached, the
Company has granted to Participant the Award set forth in the Grant Notice,
subject to all of the terms and conditions set forth in this Agreement, the
Grant Notice and the Plan.

 

ARTICLE I.

GENERAL

 

1.1           Defined Terms.  Capitalized terms not specifically defined
herein shall have the meanings specified in the Plan and the Grant Notice.  The following terms shall have the meanings
given below when used in this Agreement:

 

“Achievement Percentage” shall mean
(a) if the Highest Achievement Level is less than 80%, then the Achievement
Percentage will be 0%, (b) if the Highest Achievement Level is 80%, then the
Achievement Percentage will be 50%, (c) if the Highest Achievement Level is
100%, then the Achievement Percentage will be 100%, and (d) if the Highest
Achievement Level is 150%, then the Achievement Percentage will be 200%.  If the Highest Achievement Level falls
between the foregoing levels, the Achievement Percentage will be determined by
linear interpolation between the applicable levels.  In no event will the Achievement Percentage
exceed 200%.  All percentage calculations
shall be made to the nearest one decimal point (i.e., 1/10th of one percent).

 

“Certification Date” shall mean the
date following the end of the Performance Period on which the Committee
determines, in writing, whether and to what extent the Financial Goals have
been satisfied and the Participant’s Final Award Amount.  The Committee’s certification of the
Financial Goals shall be made within the time prescribed by, and otherwise in
compliance with, Section 162(m) of the Code.

 

“Final Award Amount” shall mean (a)
the Participant’s Goal Bonus Amount (as set forth in the Grant Notice)
multiplied by (b) the Achievement Percentage.

 

“Financial Goals” shall mean the
objective financial goals set forth in Exhibit B to the Grant Notice.

 

“Highest Achievement Level” shall
mean the highest percentage achievement of the Company relative to the
applicable Financial Goals.  As there are
two separate Financial Goals applicable to the Award, if the Company’s
financial performance relative to the first Financial Goal is 85% and the
Company’s financial performance relative to the second Financial Goal is 95%,
the Highest Achievement Level will be 95%.

 

 “Performance Period”
shall mean the performance period set forth in Exhibit B to the Grant
Notice.

 

 “Threshold Objective”
shall mean 80% achievement for each of the Financial Goals.  By way of example, as there are two separate
Financial Goals applicable to the Award, the Company must achieve financial
performance at least equal to 80% of the target level for each such Financial
Goal in order for 

 

A-1

 

the
Award to be payable.  If the Company does
not achieve the Threshold Objective, then the Award will be forfeited.  All percentage calculations shall be made to
the nearest one decimal point (i.e., 1/10th of one
percent).

 

1.2           Incorporation of Terms of
Plan.  The Award is subject to the
terms and conditions of the Plan which are incorporated herein by
reference.  In the event of any
inconsistency between the Plan and this Agreement, the terms of the Plan shall
control.

 

ARTICLE II.

AWARD

 

2.1           Grant of Award.

 

(a)           In consideration of
Participant’s continued employment with the Company or any Subsidiary thereof
and for other good and valuable consideration, the Company hereby grants to
Participant the Award.  The Award
represents a potential incentive bonus that may become payable upon Participant’s
continued service and the achievement of the Financial Goals set forth in Exhibit
B to the Grant Notice.  Participant’s
Goal Bonus Amount assumes that Participant is a full-time employee of the
Company throughout the Performance Period. 
Participant’s Goal Bonus Amount shall be proportionately adjusted by the
Committee in the event that Participant is classified as working less than 40
hours per week during any portion of the Performance Period.

 

(b)           The Final Award Amount, if
any, will be a percentage of Participant’s Goal Bonus Amount determined in
accordance with the provisions of this Agreement and Exhibit B to the
Grant Notice.

 

(c)           Participant’s right and
interest in the Award represents a mere unfunded and unsecured contingent
promise to pay by the Company.  This
Award is intended to constitute “qualified performance-based compensation”
satisfying the requirements of Treasury Regulations Sections 1.162-27(e)(2)
through (e)(5) and this Agreement shall be interpreted where necessary
consistent with such intent.

 

2.2           Payment of Award.  In the event that (i) Participant remains an
Employee until the Certification Date, and (ii) during the Performance Period,
the Company achieves the Threshhold Objective (as such term is defined in Exhibit
B to the Grant Notice), then the Final Award Amount shall become payable as
follows: (i) 50% of the Final Award Amount shall be paid to Participant in cash
in a lump sum within 30 days following the Certification Date; and (ii) on the
Certification Date, Participant shall be granted such number of Restricted
Stock Units (“RSUs”) as is determined by
dividing (x) 50% of the Final Award Amount by (y) the Fair Market Value per
share of Stock on April 30, 2013.  50% of
the RSUs shall vest on April 30, 2014, and 50% of the RSUs shall vest on April
30, 2015, in each case subject to Participant’s continued service as an
Employee on each such vesting date. Unless and until the RSUs have vested in
accordance with the foregoing vesting schedule, Participant will have no right
to any distribution with respect to such RSUs. 
In the event of Participant’s termination of employment prior to the
vesting of all of the RSUs, any unvested RSUs will terminate automatically
without any further action by the Company and be forfeited without further notice
and at no cost to the Company. 
Participant shall not be deemed to have a termination of employment
merely because of a change in the entity for which Participant renders such
service, unless following such change in capacity or service Participant is no
longer serving as an Employee of the Company or any Subsidiary.

 

A-2

 

2.3           Distribution of RSUs.

 

(a)           Subject to Section 2.3(c) below, shares of Stock
shall be distributed to Participant with respect to such Participant’s vested
RSUs following the vesting date of the RSUs as specified in Section 2.2,
subject to the terms and provisions of the Plan and this Agreement.  All
distributions shall be made by the Company in the form of whole shares of Stock.

 

(b)           Any shares of Stock issued under the RSUs shall be
issued to Participant, at the sole discretion of the Committee, in either (i)
uncertificated form, with the shares recorded in the name of Participant in the
books and records of the Company’s transfer agent with appropriate notations
regarding the restrictions on transfer imposed pursuant to this Agreement; or
(ii) certificate form.

 

(c)           The Committee may, in its sole discretion, elect to
settle any vested RSUs in cash.  The cash
amount to be paid by the Company upon distribution of any vested RSUs shall be
equal to (i) the number of vested RSUs with respect to which Participant is
entitled to a distribution multiplied by (ii) the Fair Market Value per share
of the Stock on the applicable vesting date. 
Such amount shall be paid by the Company on the applicable vesting date.

 

(d)           Except as described in this Section 2.3(c), neither
the time nor form of distribution of Stock with respect to the RSUs may be
changed, except as may be permitted by the Committee in accordance with the
Plan and Section 409A of the Code and the Treasury Regulations thereunder.

 

2.4           Tax Withholding.  Notwithstanding any other provision of this
Agreement:

 

(a)           The Company has the
authority to deduct or withhold, or require Participant to remit to the
Company, an amount sufficient to satisfy applicable federal, state, local and
foreign taxes (including any FICA obligation) required by law to be withheld
with respect to any taxable event arising pursuant to this Agreement.  The Company may permit Participant to make
such payment in one or more of the forms specified below:

 

(i)            by cash or check made payable to the Company;

 

(ii)           by the deduction of such amount from other
compensation payable to Participant;

 

(iii)          with respect to any withholding
taxes arising as a result of the vesting or settlement of the RSUs, by
requesting that the Company withhold a net number of vested shares of Stock
otherwise issuable pursuant to the RSUs having a then current Fair Market Value
not exceeding the amount necessary to satisfy the withholding obligation of the
Company and its Subsidiaries based on the minimum applicable statutory
withholding rates for federal, state, local and foreign income tax and payroll
tax purposes;

 

(iv)          with respect to any withholding
taxes arising as a result of the vesting or settlement of the RSUs, by
tendering vested shares of Stock having a then current Fair Market Value not
exceeding the amount necessary to satisfy the withholding obligation of the
Company and its Subsidiaries based on the minimum applicable statutory
withholding rates for federal, state, local and foreign income tax and payroll
tax purposes; or

 

(v)           in any combination of the
foregoing.

 

A-3

 

(b)           With respect to any
withholding taxes arising as a result of the vesting or settlement of the RSUs,
in the event Participant fails to provide timely payment of all sums required
pursuant to Section 2.4(a), the Company shall have the right and option,
but not the obligation, to treat such failure as an election by Participant to
satisfy all or any portion of Participant’s required payment obligation
pursuant to Section 2.4(a)(ii) or Section 2.4(a)(iii) above, or any
combination of the foregoing as the Company may determine to be appropriate.
The Company shall not be obligated to deliver any certificate representing
shares of Stock issuable with respect to the RSUs to Participant or his or her
legal representative unless and until Participant or his or her legal
representative shall have paid or otherwise satisfied in full the amount of all
federal, state, local and foreign taxes applicable with respect to the taxable
income of Participant resulting from the vesting or settlement of the this
Award or any other taxable event related to the RSUs.

 

(c)           In
the event Participant’s tax withholding obligation will be satisfied under Section 2.4(a)(iii)
above, then the Company may elect to
instruct any brokerage firm determined acceptable to the Company for such
purpose to sell on Participant’s behalf a whole number of shares from those
shares of Stock issuable to Participant upon settlement of the RSUs as the
Company determines to be appropriate to generate cash proceeds sufficient to
satisfy Participant’s tax withholding obligation.  Participant’s acceptance of this Award
constitutes Participant’s instruction and authorization to the Company and such
brokerage firm to complete the transactions described above, including the
transactions described in the previous sentence, as applicable.  Any shares of Stock to be sold at the
Company’s direction through a broker-assisted sale will be sold on the day the
tax withholding obligation arises (i.e., the date Stock is delivered) or as
soon thereafter as practicable.  The
shares of Stock may be sold as part of a block trade with other participants of
the Plan in which all participants receive an average price.  Participant will be responsible for all
broker’s fees and other costs of sale, and Participant agrees to indemnify and
hold the Company harmless from any losses, costs, damages, or expenses relating
to any such sale. To the extent the proceeds of such sale exceed Participant’s
tax withholding obligation, the Company agrees to pay such excess in cash to
Participant as soon as practicable. Participant acknowledges that the Company
or its designee is under no obligation to arrange for such sale at any
particular price, and that the proceeds of any such sale may not be sufficient
to satisfy Participant’s tax withholding obligation.  The Company may refuse to issue any shares of
Stock in settlement of the RSUs to Participant until the foregoing tax
withholding obligations are satisfied.

 

2.5           Conditions to Issuance of Shares.  The Company shall not be required to issue or
deliver any shares of Stock issuable upon the vesting of the RSUs prior to the
fulfillment of all of the following conditions:

 

(a)           The admission of such shares to listing on all stock
exchanges on which the Stock is then listed; and

 

(b)           The completion of any registration or other qualification
of such shares under any state or federal law or under rulings or regulations
of the Securities and Exchange Commission or of any other governmental
regulatory body, which the Committee shall, in its absolute discretion, deem
necessary or advisable; and

 

(c)           The obtaining of any approval or other clearance
from any state or federal governmental agency which the Committee shall, in its
absolute discretion, determine to be necessary or advisable; and

 

(d)           The receipt by the Company of full payment of any
applicable withholding tax in any manner permitted under Section 2.4 above; and

 

A-4

 

(e)           The lapse of such reasonable period of time
following date the RSUs vest as the Committee may from time to time establish
for reasons of administrative convenience, subject to Section 409A of the Code
and the Treasury Regulations and other guidance issued thereunder.

 

2.6           Negative Discretion.  The Committee may, in its discretion, and at
any time during or after the Performance Period, reduce or eliminate the Final
Award Amount or the number of RSUs otherwise payable to any Participant under
this Award.  Any such reduction or
elimination may be made based on such objective or subjective determinations as
the Committee determines appropriate, including, but not limited to, unusual or
nonrecurring events or developments affecting the Company or any Subsidiary or
affiliate of the Company, or the financial statements of the Company or any
Subsidiary or affiliate of the Company, or the effect of changes in applicable
laws, regulations or accounting principles during the Performance Period, where
is determines that such reduction or elimination is in the best interests of
the Company.

 

ARTICLE III.

OTHER PROVISIONS

 

3.1           Award and Interests Not
Transferable.  This Award
and the rights and privileges conferred hereby, including any RSUs awarded
hereunder, shall not be liable for the debts, contracts or engagements of
Participant or his or her successors in interest or shall be subject to
disposition by transfer, alienation, anticipation, pledge, encumbrance,
assignment or any other means whether such disposition be voluntary or
involuntary or by operation of law by judgment, levy, attachment, garnishment
or any other legal or equitable proceedings (including bankruptcy), and any
attempted disposition thereof shall be null and void and of no effect.

 

3.2           Rights as Stockholder.  Neither Participant nor any person claiming
under or through Participant shall have any of the rights or privileges of a
stockholder of the Company in respect of any shares of Stock issuable hereunder
unless and until certificates representing such shares (which may be in
uncertificated form) will have been issued and recorded on the books and
records of the Company or its transfer agents or registrars, and delivered to
Participant (including through electronic delivery to a brokerage
account).   After such issuance,
recordation and delivery, Participant shall have all the rights of a
stockholder of the Company, including with respect to the right to vote the
shares and the right to receive any cash or share dividends or other
distributions paid to or made with respect to the shares.

 

3.3           Not a Contract of Employment
or other Service Relationship.  Nothing in this Agreement or in the Plan
shall confer upon Participant any right to continue to serve as an employee or
other service provider of the Company or any of its affiliates.  Participant understands and agrees that this
Award does not alter the at-will nature of his or her employment relationship
with the Company and is not a promise of continued employment for the vesting
period of the Award or any portion of it.

 

3.4           Administration.  The Committee shall have the power to
interpret the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend
or revoke any such rules.  All actions
taken and all interpretations and determinations made by the Committee in good
faith shall be final and binding upon Participant, the Company and all other interested persons.  No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan, this Agreement or the shares of Stock issuable
with respect to the RSUs. In its absolute discretion, the Board may at any time
and from time to time exercise any and all rights and duties of the Committee
under the Plan and this Agreement.

 

A-5

 

3.5           Notices.  Any notice to be given under the terms of
this Agreement to the Company shall be addressed to the Company in care of the
Secretary of the Company at the address given beneath the signature of an
authorized officer of the Company on the Grant Notice, and any notice to be
given to Participant shall be addressed to Participant at the address given
beneath Participant’s signature on the Grant Notice.  By a notice given pursuant to this Section
3.5, either party may hereafter designate a different address for notices to be
given to that party.  Any notice shall be
deemed duly given when sent via email or when sent by certified mail (return
receipt requested) and deposited (with postage prepaid) in a post office or
branch post office regularly maintained by the United States Postal Service.

 

3.6           Titles.  Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of this
Agreement.

 

3.7           Construction.  This Agreement shall be administered,
interpreted and enforced under the laws of the State of Delaware without regard
to conflicts of laws thereof. Should any provision of this Agreement be
determined by a court of law to be illegal or unenforceable, the other provisions
shall nevertheless remain effective and shall remain enforceable.

 

3.8           Conformity to Securities
Laws.  Participant acknowledges that
the Plan is intended to conform to the extent necessary with all provisions of
the Securities Act and the Exchange Act and any and all regulations and rules
promulgated by the Securities and Exchange Commission thereunder, and state
securities laws and regulations. 
Notwithstanding anything herein to the contrary, the Plan shall be
administered, and the shares of Stock issuable with respect to the RSUs shall
be issued, only in such a manner as to conform to such laws, rules and
regulations.  To the extent permitted by
applicable law, the Plan and this Agreement shall be deemed amended to the
extent necessary to conform to such laws, rules and regulations.

 

3.9           Amendments.  This Agreement may not be modified, amended
or terminated except by an instrument in writing, signed by Participant and by
a duly authorized representative of the Company.

 

3.10         Successors and Assigns.  The Company may assign any of its rights
under this Agreement to single or multiple assignees, and this Agreement shall
inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer
herein set forth, this Agreement shall be binding upon Participant and his or
her heirs, executors, administrators, successors and assigns.

 

3.11         Entire Agreement.  The Plan, the Grant Notice and this Agreement
(including all Exhibits hereto) constitute the entire agreement of the parties
and supersede in their entirety all prior undertakings and agreements of the
Company and Participant with respect to the subject matter hereof.

 

3.12         Section 409A.

 

(a)           Notwithstanding
any other provision of the Plan, this Agreement or the Grant Notice, the Plan,
this Agreement and the Grant Notice shall be interpreted in accordance with,
and incorporate the terms and conditions required by, Section 409A of the Code
(together with any Department of Treasury regulations and other interpretive
guidance issued thereunder, including without limitation any such regulations
or other guidance that may be issued after the date hereof, “Section 409A”).  The Committee may, in its discretion, adopt
such amendments to the Plan, this Agreement or the Grant Notice or adopt other
policies and procedures (including amendments, policies and procedures with
retroactive effect), or take any other actions, as the Committee determines are
necessary or appropriate to comply with the requirements of Section 409A.

 

A-6

 

(b)           This Agreement is not intended to provide for any
deferral of compensation subject to Section 409A of the Code, and, accordingly,
the amounts payable and any shares of Stock issuable hereunder shall be distributed
to Participant no later than the later of: 
(i) the 15th day of the third month following Participant’s
first taxable year in which such amounts are no longer subject to a substantial
risk of forfeiture, and (ii) the fifteenth 15th day of the
third month following first taxable year of the Company in which such amounts
are no longer subject to substantial risk of forfeiture, as determined in
accordance with Section 409A and any Treasury Regulations and other guidance
issued thereunder.

 

3.13         Tax Representations.  Participant has reviewed with Participant’s
own tax advisors the federal, state, local and foreign tax consequences of this
investment and the transactions contemplated by the Grant Notice and this
Agreement.  Participant is relying solely
on such advisors and not on any statements or representations of the Company or
any of its agents. Participant understands that Participant (and not the
Company) shall be responsible for Participant’s own tax liability that may
arise as a result of this investment or the transactions contemplated by this
Agreement.

 

A-7

 

EXHIBIT B

 

TO RESTRICTED STOCK UNIT AWARD
GRANT NOTICE

 

FINANCIAL GOALS

 

“Financial Goals” shall mean: AV
Operating Profits (as defined below) of $[Insert applicable goal]  and AV Revenue of $[Insert
applicable goal].

 

“AV Operating Profits” shall mean the
operating profits of the Company for the Performance Period as reflected in the
Company’s audited financial statements prepared in accordance with generally
accepted accounting principles (“GAAP”) and
certified by the Company’s independent auditors, subject to adjustment as set
forth below).

 

“AV Revenue” shall mean the revenue
of the Company for the Performance Period as reflected in the Company’s audited
financial statements prepared in accordance with GAAP and certified by the
Company’s independent auditors, subject to adjustment as set forth below).

 

“Performance Period” shall mean the
period comprised of the [Insert applicable period]
of the Company.

 

The
Committee may, in its sole discretion, provide that one or more objectively
determinable and equitable adjustments shall be made to one or more of the
Financial Goals given certain business changes that might occur post goal
setting.  Such adjustments shall include:
items related to a change in accounting principle; items relating to financing
activities; expenses for restructuring or productivity initiatives; other
non-operating items; items related to acquisitions; items attributable to the
business operations of any entity acquired by the Company during the
Performance Period; items related to the disposal of a business or segment of a
business; items related to discontinued operations that do not qualify as a
segment of a business under generally accepted accounting principles; items
attributable to any stock
dividend, stock split, combination or exchange of stock occurring during the
Performance Period; any other items of significant income or expense which are
determined to be appropriate adjustments; items relating to unusual or
extraordinary corporate transactions, events or developments; items related to
amortization of acquired intangible assets; items that are outside the scope of
the Company’s core, on-going business activities; items related to acquired
in-process research and development; items relating to changes in tax laws;
items relating to major licensing or partnership arrangements; items relating
to asset impairment charges; items relating to gains or losses for litigation, arbitration
and contractual settlements; or items relating to any other unusual or
nonrecurring events or changes in applicable laws, accounting principles or
business conditions.  Such determinations
shall be made within the time prescribed by, and otherwise in compliance with,
Section 162(m) of the Code.

 

B-1Exhibit
10.35

 

MASTER
SERVICES AGREEMENT

 

This Master Services Agreement (“Agreement”) is made
as of September 9, 2004 (“Effective Date”) and is entered into by Thomson
Healthcare Inc., a Florida corporation having offices located at 6200 South
Syracuse Way, Greenwood Village, Colorado 80111 and Virtusa Corporation (“SP”)
a Delaware corporation having offices located at 2000 West Park Drive,
Westborough, Massachusetts 01581.

 

1.             Standard Terms And Conditions:

 

The attached “Standard Terms and Conditions for Master
Services Agreement” shall be deemed to be incorporated by reference into this
Master Services Agreement and each Statement of Work entered into by Thomson
Healthcare Inc. or any Affiliated Entity (as defined below), and SP as of the
date thereof (and if such incorporating reference is omitted for any reason,
such omission may be remedied at any time by either party, without additional
consideration therefor, as of the effective date of the Statement of Work) so
long as this Agreement is in effect at the time such Statement of Work is
executed or is later revived during the term of performance of such Statement
of Work.

 

2.             Notice:

 

Except as otherwise provided in this Agreement,
whenever notice, demand or other communication shall or may be given to either
party in connection with this Agreement, it shall be in writing and shall be
sent by certified mail, postage prepaid, return receipt requested or by
overnight express carrier, and shall be sent to the following addresses (or to
such other address or addresses as may be from time to time hereinafter
designated in writing by the parties):

 

If to Thomson Healthcare Inc.:

Frank Licata

Senior Vice President and CTO, Thomson Scientific and
Healthcare

3501 Market Street

Philadelphia, Pennsylvania 19104

 

With a copy to the Affiliated Entity for which
Services under the relevant and affected Statement(s) of Work are
performed:

 

With a copy to

Darren Pocsik

General Counsel, Thomson Scientific and Healthcare

1 Station Place

Stamford, Connecticut 06902

 

If to SP:

Thomas Holler

CFO

2000 West Park Drive

Westborough, MA 01581

 

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be effective as of the day,
month and year first written above.

 

	
  THOMSON HEALTHCARE INC.

  	
  VIRTUSA CORPORATION

  
	
   

  	
   

  
	
  By:

  	
  /s/ Fred Lauber

  	
   

  	
  By:

  	
  /s/ Thomas Holler

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Fred Lauber

  	
   

  	
  Name:

  	
  Thomas Holler

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  CTO

  	
   

  	
  Title:

  	
  CFO

  

 

1

 

STANDARD TERMS AND CONDITIONS FOR
MASTER SERVICES AGREEMENT

 

1.             Definitions:

 

Unless defined elsewhere in this Agreement, the
capitalized terms in this Agreement shall have the meanings set forth in this Section 1.  The terms defined below or used elsewhere in
this Agreement shall be deemed to refer to the singular or plural as the
context requires.

 

1.1           “Affiliated Entity” means any company, person or other legal entity that
directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with Thomson Healthcare Inc. where
control means the possession, directly or indirectly, of the power to direct
the management and policies of a party, whether through the ownership of voting
securities, contract or otherwise.

 

1.2           “Dedicated Staffing Levels” means the resources specified by level of
technological or managerial expertise, competencies, level of training and
experience, team composition, physical work location, compensation levels or
other specifications as set forth in a Statement of Work which SP agrees to
assign over the Performance Period to fulfill the Thomson Requirements at the
Outsourcing Center or at Thomson Sites, as Thomson and SP may determine.

 

1.3           “Intellectual Property” means any trademarks, service marks, patents,
inventions, trade names, copyrights, moral rights, and trade secrets (whether
or not any of these rights are registered) names, logos, websites, know-how,
ideas, rights in designs, and other marks, reports, computer programs, software
(source code and object code), programming aides, guides or material,
documentation, manuals, charts, specifications, algorithms, formulas, data
files, descriptions, diagrams, screen displays, schematics, blueprints,
drawings, tapes, devices, listings, notes, records, tables, plans, schedules,
flow charts, creative concepts and designs, program listings, or other
materials, and any draft of any of the foregoing, including all applications
for any such right, matter or thing or registration thereof and all rights or
forms of protection of a similar nature or having equivalent or similar effect
to any of these rights which may subsist anywhere in the world.

 

1.4           “Key Resources” means SP Personnel specified as “key resources” in the
relevant Statement of Work.

 

1.5           “OC Specifications” means the requirements and specifications agreed
between Thomson and SP concerning the physical location and facilities,
technological capabilities and operational and environmental aspects of an
Outsourcing Center as more particularly set forth in Schedule 1.5 attached
hereto.

 

1.6           “Outsourcing Center” (OC) means a Services facility located in a
mutually agreed location, operated by and leased or under the control of SP,
which conforms to the OC Specifications.

 

1.7           “Performance Period” means the term set forth in a Statement of Work
during which SP shall provide the Dedicated Staffing Levels at the Outsourcing
Center 

 

2

 

or at Thomson Sites, as applicable, in support of the
Thomson Requirements in performance of the Services.

 

1.8           “Personnel” means SP’s employees, technical advisors and specialists and
any agents, contractors, and subcontractors used by SP in fulfilling the
Dedicated Staffing Levels as set forth in a Statement of Work.  For the avoidance of doubt, Personnel
includes all billable/non-billable employees, agents and staff as noted above.

 

1.9           “Services” means the maintenance, enhancement, development and/or
consulting services to be provided by SP pursuant to this Agreement as set
forth in a Statement of Work; and any services, functions and responsibilities not
specifically described which are required for the proper performance and
delivery of the Services set forth between Thomson and SP.

 

1.10         “SP Confidential Information” means SP’s Proprietary Intellectual
Property (as defined in Section 7.4).

 

1.11         “Statement of Work” means the Exhibit(s) (a form of which is
attached hereto in Exhibit A) listing the Services or Work Product to be
provided or delivered by SP and the Thomson Requirements, Dedicated Staffing
Levels, Key Resources, Service Levels, Payment Terms, and Performance Period
related to the same.  Statement(s) of
Work shall be signed by both Thomson and SP and shall be subject to and made a
part of this Agreement. Statement(s) of Work may be revised from time to
time subject to an appropriate change order or amendment to the applicable
Statement of Work, which is executed and delivered by Thomson and SP.

 

1.12         “Thomson Confidential Information” means: (i) the Work Product; (ii) all
information provided to or obtained by SP in the course of performing the
Services including, without limitation, Intellectual Property, sign-on
passwords and access codes whether proprietary to Thomson or third parties; (iii) any
documents developed by SP for training of Personnel on applications and systems
used by Thomson and/or knowledge transfer; (iv) any hard assets of
Thomson; (v) any identification of competitors of Thomson provided by
Thomson to SP as part of a Statement of Work; and (vi) any other
information about the operations of Thomson or its customers, including,
without limitation, financial information, health information, requests for
proposals, information about business plans, product design information and
other information, which Thomson considers to be confidential.

 

1.13         “Thomson Requirements” means collectively, the Services, the scope of
work to be performed and service levels to be met by SP as set forth in writing
between Thomson and SP, including, but not limited to, project proposals,
project descriptions, deliverables, delivery dates, performance and acceptance
criteria, pricing and payment terms, minutes and meeting notes, and technical
requirements and specifications.

 

3

 

1.14         “Thomson Sites” means facilities under the operational control of Thomson
at which SP may perform Services or deliver Work Product conforming to the
Thomson Requirements.

 

1.15         “Thomson” means Thomson Healthcare Inc. and its Affiliated Entities, all
of which may be referred to individually and collectively in this Agreement as “Thomson”
and each of which (in its individual capacity) may from time to time request SP
to perform Services pursuant to a Statement of Work.  Neither Thomson Healthcare Inc., nor any
Affiliated Entity entering into a Statement of Work with SP shall be responsible
under any other Statement of Work between SP and another Affiliated Entity or
Thomson Healthcare Inc.

 

1.16         “Work Product” means any product or deliverable SP is to provide Thomson
under this Agreement as set forth in a Statement of Work, including, without
limitation, all Intellectual Property relating thereto.  Work Product shall not include any
Intellectual Property developed by SP or any third party prior to SP’s
commencement of work for Thomson or outside the scope of the Services without
use of any Thomson Confidential Information.

 

2.             Provision of Services and Work Product:

 

2.1           Thomson may, from time to time, issue a Statement of Work to SP under
this Agreement requesting SP to provide Services.  The Affiliated Entity that issues a Statement
of Work (or Thomson Healthcare Inc., if such entity issues a Statement of Work)
shall be solely responsible for the duties and obligations with respect to such
Statement of Work.  In no event shall
Thomson Healthcare Inc. or any Affiliated Entity be deemed to be a guarantor
of, or otherwise responsible for, any obligation of any other party entering
into a Statement of Work hereunder.

 

2.2           The Statement of Work shall be in writing and shall be executed by both
parties.  If SP accepts a Statement of
Work from Thomson, it shall do so promptly by executing and returning the
Statement of Work.  However, if SP begins
to perform the Services designated in a written Statement of Work that has been
signed by a Thomson employee at the Vice President level or higher and such
Statement of Work had been agreed to in all respects by SP except that SP has
not yet signed and returned the Statement of Work, SP shall be deemed to have
accepted the Statement of Work in accordance with all of its terms on the date
work begins.  Each Statement of Work
accepted by SP shall be completed in accordance with the provisions of the
Statement of Work and the provisions of this Agreement, including the Standard
Terms And Conditions For Master Services Agreement and no other provisions shall
be deemed applicable.

 

2.3           The Performance Period will be specified in each Statement of Work. SP
agrees and understands that prompt performance by SP of all Services is
required by Thomson in order to enable Thomson to meet its schedules and
commitments, and that time is of the essence for the Services to be provided
(including Work Product to be delivered) by SP, and that timeliness of Work
Product and the Services to be performed by SP are also expressly subject to
Thomson’s timely and satisfactory performance of its obligations and other
assumptions, all as set 

 

4

 

forth in the applicable Statement of Work.  While SP shall control the detail, manner and
method of performing Services under this Agreement, it is understood that all
Services shall be subject to inspection and approval of Thomson.  SP agrees to submit, from time to time or as
requested by Thomson, written and oral reports, programs, conclusions, process
reports, recommendations and other materials concerning the Services.

 

2.4           SP agrees to supply the Dedicated Staffing Levels, to perform the
Services and supply Work Product at the Outsourcing Center or at a Thomson Site
as designated by the parties and agreed to in writing in a Statement of
Work.  Services and Work Product shall at
all times be subject to the acceptance criteria as set forth in an applicable
Statement of Work.  SP further agrees to
train the necessary person(s) and develop skills as needed or acquire the
necessary resources, at its expense, to supply the Dedicated Staffing Levels as
required.

 

2.5           Prior to assigning Personnel, SP shall notify Thomson of the proposed
assignment, shall offer to introduce the individual to appropriate
representatives of Thomson, and shall provide Thomson with a resume and other
information regarding the individual that may be reasonably requested by
Thomson.  SP shall appoint and identify
to Thomson at least one Key Resource for each Statement of Work who shall have
overall responsibility for decision-making and managing SP’s Personnel assigned
to each Statement of Work under this Agreement. 
SP’s assignment of Key Resources shall be subject to Thomson’s written
consent, which shall not be unreasonably withheld.  Replacement or re-assignment of Key Resources  shall not be done upon less than three (3) months prior written notice to Thomson, except
for issues outside of SP’s control such as immigration issues or
attrition.  Key Resources may include SP’s
relationship manager, the Outsourcing Center manager, the Thomson Site manager
(if any), project managers and senior technical people.

 

2.6           SP will use all reasonable commercial efforts to manage its resources to
ensure that the performance of the Services is not adversely affected by
changes in the identity of persons performing such Services.  Thomson reserves the right to require
Personnel changes, or object to SP, to any person assigned by SP used in the
performance of the Services who shall, in the reasonable opinion of Thomson,
engage in any misconduct or be incompetent or negligent and SP shall
immediately remove such person from performing the Services, except if any
resource is sought to removed for performance related issues, Thomson shall
provide 10 (ten) days written notice to SP and specify the nature of the
performance issues which if uncured within such period, SP shall promptly
remove such person.  SP shall promptly
provide an appropriate replacement.  SP
will only substitute a person performing Services with another person of at
least equal or substantially similar professional competence.  Thomson shall have the right to request the
removal of any Personnel who do not comply with Thomson’s security, health and
safety rules and such other Thomson policies and staff rules.  SP is prohibited from changing Personnel
without prior written notice of the proposed change, Thomson approval of the
replacement Personnel (not to be unreasonably withheld), an appropriate overlap
and knowledge transfer period (to 

 

5

 

be no less than ten (10) days), and completion of
training and orientation, at SP’s expense.

 

2.7           In the event that the nature of Services to be provided under a
Statement of Work requires SP to work on a Thomson Site, or Thomson consents to
a request therefor, Thomson shall provide to SP such facilities, space, office
supplies and support as may be reasonably required by the nature of such
Services.  Except as provided to the
contrary in a Statement of Work, SP shall otherwise be responsible to provide
such supplies, equipment and facilities, including but not limited to software,
hardware, and tools, as it may require to perform the Services and shall be
responsible for all costs and expenses thereof.

 

2.8           SP shall cause all Personnel to execute appropriate instruments of
assignment, as set forth in Exhibit C or such other form as
provided by Thomson, and at Thomson’s request, SP shall provide copies of such
instruments to Thomson and cooperate with respect to any action taken by
Thomson to secure or protect ownership of the Work Product.

 

2.9           SP shall not assign, request or retain any non-employee agent,
consultant or subcontractor to assist it in the performance of Services without
prior written consent of Thomson.  SP
shall be responsible for all acts, defaults or neglects of any and all
Personnel in the performance of this Agreement, including any such agent,
consultant or subcontractor, as fully as if they were acts, defaults or
neglects of SP, and no relationship of employer and employee is hereby created
or implied as between Thomson and such Personnel.  SP shall be solely responsible for payment to
all Personnel, including any such agent, consultant, or subcontractor.  SP shall include a provision in all of its
agreements with employees, agents, consultants, and subcontractors stating the
same.

 

2.10         All Personnel assigned to perform Services shall be required to read and
certify that they will comply with all Thomson written policies and procedures,
as such policies and procedures are amended from time to time by Thomson, in
its sole discretion, including, but not limited to, programming policies and
procedures, code version, configuration management, bug tracking, security
access, code staging, acceptance testing, project tracking, and naming
conventions.  SP agrees that it will not,
nor will any Personnel, tamper with, compromise, or attempt to circumvent any
physical or electronic security or audit measures employed by Thomson in the
course of its business.  SP agrees that
Thomson may review any information, electronic mail communications, or other
data stored on or contained in any computer hard drive, disk or any other
storage medium used in and related to the performance of a Statement of Work to
determine whether there has been any breach of security or violation of this
Agreement, regardless of whether such computer hard drives, disks, storage
media or electronic mail communications are on equipment owned or leased by SP
or any Personnel.

 

2.11         In the event it is necessary for SP to obtain visas or work permits for
Personnel, Thomson will cooperate with SP by taking all reasonably necessary
actions to facilitate SP’s efforts, including providing documentation
indicating the nature and location of the work to be performed, the necessity
of the work to be 

 

6

 

performed, and other documentation as may be
reasonably required and related to this Agreement, and posting such notices as
may be legally required.  Notwithstanding
the foregoing, SP shall ensure that all Personnel will have satisfied all
necessary and applicable legal requirements in obtaining such visas or work
permits and SP shall be solely responsible for acquiring all work permits and
visas for Personnel, and Thomson will not be liable for any costs or issues
arising from or relating thereto.

 

2.12         SP shall not use any Thomson resource for performing services for any
party other than Thomson and agrees that any and all Restricted Personnel (as
defined below) providing Services or delivering Work Product as provided herein
on behalf of Thomson pursuant to a particular Statement of Work will not be
assigned or involved in any projects directly or indirectly performed for the
benefit of any Thomson competitor(s) identified in such Statement of Work
(a “Named Competitor”) during the term of such Restricted Personnel’s
performance of services under the Statement of Work and for a period of 6
months thereafter.  Identification of
Named Competitors shall be those companies competitive to the Thomson entity
engaging SP under the Statement of Work and will not exceed at any time 10
companies per such Thomson entity and may be updated in writing by Thomson, in
its reasonable discretion, from time to time but no more than once every 6
months.  Such update shall be effective
upon delivery to the SP Relationship Manager as such term is defined in Section 3.1
hereof.  “Restricted Personnel” shall
mean a Virtusa resource engaged under the applicable Statement of Work with
titles, responsibilities or functions of project manager, architect, design
engineer, technical lead, developer, senior engineers or engineer.

 

2.13         Thomson may revise the Services set forth in a Statement of Work in a
manner which does not vary the nature of SP’s work or materially increase the
burden on SP (material shall mean an increase of time or resources of 1% or
more (individually or in the aggregate) of the estimated time or resources as
of the time of the revision) Any other revision to Services may be effected
from time to time only pursuant to Thomson’s request to SP for a quotation
based upon the proposed revision.  Such
quotation shall be provided by SP no more than seven (7) days after SP’s
receipt of such request, and Thomson shall accept or reject such quotation
within seven (7) days from its receipt thereof.  Failure by Thomson to affirmatively accept a
quotation in writing shall be deemed a rejection; diligent pursuit of
negotiation of a quotation by Thomson shall stay the seven (7) day period
for so long as such negotiations are pending.

 

3.             Relationship Management:

 

3.1           During the term of this Agreement, Thomson and SP shall each designate
an employee with sufficient knowledge and background to act as the primary
liaison between Thomson and SP (the “Thomson Relationship Manager” or “SP
Relationship Manager” as the case may be). 
Each Relationship Manager will have primary operational responsibility
for its responsibilities hereunder and will serve as the primary liaison with
the other party to the relevant Statement of Work.  SP hereby initially designates the sales
executive on such account                   

 

7

 

as the SP Relationship Manager.  The SP Relationship Manager shall be deemed a
Key Resource.

 

4.             SP’s Representations and Warranties:

 

4.1           SP represents and warrants that: (i) it has the expertise,
experience and the necessary personnel, software, licenses, and equipment to
perform the Services  and to fulfill the
Thomson Requirements; (ii) it has all necessary power and authority to
enter into this Agreement and has fully disclosed all material circumstances
that may affect its performance under this Agreement; (iii) this Agreement
and its performance hereunder do not and will not violate the terms of any
other contract, covenant or agreement between SP and any third party now
existing or hereinafter entered into; and (iv) subject to the terms
specified in Sections 8.1, 8.2, 8.3, 8.4 and 8.5, neither the Work Product nor
the performance of the Services infringes upon or violate the rights of any
third party and, except as expressly set forth in a Statement of Work, SP is
the owner of or has the right to assign to Thomson all Work Product or has the
right to license the use thereof.

 

4.2           SP shall comply with all applicable laws or other requirements imposed
by U.S. or foreign law in its performance of this Agreement including, but not
limited to (i) any and all data protection laws that are or may come into
effect during the term of this Agreement in all relevant jurisdictions; and (ii) the
export control restrictions of the United States, and shall obtain all
appropriate permits and authorizations necessary to perform the Services.  SP shall use all reasonable efforts to
identify and notify Thomson of any changes in applicable laws and regulations
that may directly relate to the delivery or receipt of Services.  SP shall be
responsible for any fines and penalties arising from any noncompliance by SP or
its Personnel with the laws or regulations applicable to SP or, as specified in
the Statement of Work, in respect of the delivery or receipt of Services.  To the extent that any of the Services or
Work Product cannot be performed or provided without violation of any law,
regulation, or other control, then SP shall use commercially reasonable efforts
to develop and, upon Thomson approval, implement a suitable work-around until
such time as SP can perform the Services without such work-around.

 

4.3           SP ensures that Work Product when finally delivered to Thomson by SP
under this Agreement and a Statement of Work shall be free from harmful viruses
or disabling code of any description designed to damage, interfere with,
degrade the performance of, or otherwise adversely affect Thomson’s computer
hardware, networks, systems, programs and/or data files.

 

4.4           SP shall exercise all reasonable care for the protection of Work
Product, works in progress, Thomson Confidential Information, and other Thomson
information, data, and files and shall maintain data integrity safeguards
against the deletion or alteration of such data and materials in conformity
with industry best practices.  SP shall
not use any electronic means, including, but not limited to, any hidden files,
any software or hardware limiting function, any virus, any key lock or illicit
code, whether implemented by electronic or other means, to block Thomson’s
access under this Agreement or any Statement of Work.  In the event that any 

 

8

 

such data or material is lost or destroyed because of
any act or omission of SP, or any noncompliance with the obligations of SP
under this Agreement, then SP shall, at its own expense, use its best efforts
to reconstruct such data and materials as soon as feasible.

 

4.5           For a period consisting of the longer of the period set forth in the
Statement of Work (if any) or three (3) months from the date on which the
Work Product is finally accepted by Thomson in accordance with the acceptance
criteria set forth in a Statement of Work, the Work Product shall operate
without any Material Defects (as defined below) from the technical
specifications and requirements agreed to in writing by the parties as set
forth in the applicable Statement of Work. 
During this period, SP undertakes to use reasonable commercial efforts
to expeditiously correct and remediate at its own expense and in consultation
with Thomson, any such Material Defects which are able to be replicated.  The foregoing warranty in this Section shall
not apply to: errors in, or non-conformance by, the Work Product caused by (i) Thomson’s
negligent misuse, (ii) Thomson’s hardware malfunction, or other causes
beyond the reasonable control of SP, (iii) third party software not
licensed through or provided by Virtusa, or (iv) modification, customization
or damage to the Work Product (other than as authorized by, or by, SP) or
errors in the Work Product caused directly by the performance or
non-performance of Thomson of its obligations under any Statement of  Work. 
Material Defects shall be defined as material errors in the Work Product
that have caused the system to crash, or material errors in the Work Product
that would destabilize the system if not remedied or the Work Product lacks
major functionality (from that set forth in the written specifications).

 

4.6           SP shall establish and maintain precautions to prevent its Personnel
from making, receiving, providing, or offering substantial gifts,
entertainment, payments, loans, or other consideration to employees, agents, or
representatives of Thomson.

 

4.7           SP agrees that it shall not incorporate, embed, or otherwise involve any
third party materials, including, but not limited to any open source software
in any Work Product, and that it shall not use any third party materials,
including, but not limited to any open source software, in the performance of
Services without the prior written consent of Thomson.

 

4.8           SP agrees to notify Thomson promptly upon discovery of any instance
where SP fails to comply with this Section 4.

 

4.9           EXCEPT AS STATED IN THIS SECTION 4, SP MAKES NO OTHER
REPRESENTATIONS OR WARRANTIES WHATSOEVER, WHETHER ORAL, EXPRESSED, IMPLIED,
OR STATUTORY AND HEREBY DISCLAIMS ANY AND ALL WARRANTIES WITH REGARD TO THE
SERVICES, THE DELIVERABLES, ANY SOFTWARE AND ANY OTHER MATERIALS OR ITEMS PROVIDED
HEREUNDER.  SP SPECIFICALLY DISCLAIMS ANY
AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, TITLE AND NON-INFRINGEMENT.

 

9

 

5.             Personnel Payments/Benefits:

 

5.1           Personnel shall not be entitled to any sick pay or benefits, holiday
pay, any pension, bonus or other fringe benefits or any other advantage or
privilege enjoyed by employees of Thomson and hereby waive any claim thereto.  SP shall indemnify Thomson and each of its
directors, employees and agents in respect of any claims that may be made to
the contrary.  SP shall treat any such
Personnel as its employee for all purposes including, but not limited to, the
payment of any federal, state and local employment and social security taxes
and shall deduct from such Personnel’s salaries all applicable taxes, charges
for benefits and any and all other deductions and withholdings which are
required by law.  SP shall indemnify
Thomson for any breach of its obligations under this Section 5.

 

5.2           SP shall be fully responsible for any payment required to be made to any
person which is payable under statute, contract or common law as a consequence
of such person’s employment being terminated or his conditions of employment
being adversely changed as a result of a reduction in Thomson’s requirements
for the Services or the termination of this Agreement or any Statement of Work.

 

6.             Confidentiality:

 

6.1           With regard to SP Confidential Information disclosed under this
Agreement and any Statement of Work, Thomson shall be deemed to be the “Receiving
Party” and SP shall be deemed to be the “Disclosing Party”.  With regard to Thomson Confidential
Information disclosed under this Agreement or any Statement of Work, SP shall
be deemed to be the “Receiving Party” and Thomson shall be deemed to be the “Disclosing
Party.”  “Confidential Information” shall
be deemed to be SP Confidential Information when Thomson is the Receiving
Party, or Thomson Confidential Information when SP is the Receiving Party.  The Receiving Party shall hold all
Confidential Information of the Disclosing Party at all times in trust and
confidence, shall take all appropriate action to ensure the confidentiality and
security of the Disclosing Party’s Confidential Information, and shall treat
the Disclosing Party’s Confidential Information with the same degree of care
that it uses to protect its own most confidential information of like kind and
value, but in no case less than a reasonable degree of care.  Without Disclosing Party’s express written
authorization, Receiving Party shall not use Confidential Information for its
own benefit or for the benefit of any party other than Disclosing Party, and
shall not duplicate or disclose the Confidential Information in any manner to
any other party other than such of its Personnel or employees who have a need
to know such information solely in connection with the express purposes of this
Agreement.  In no event shall SP use
Thomson Confidential Information to Thomson’s detriment.  Receiving Party shall not, and shall not
assist others to, disassemble, decompile, reverse engineer or otherwise attempt
to recreate Confidential Information. 
Notwithstanding the foregoing, from time to time, Disclosing Party may
require that any Confidential Information held by Receiving Party be returned
to Disclosing Party, or destroyed or erased by Receiving Party, at Disclosing
Party’s option.

 

6.2           Neither party shall, without Disclosing Party’s express written consent
and, if such Confidential Information has been provided by Thomson, without
complying with Thomson’s security procedures: (i) remove from a Thomson
Site or the 

 

10

 

Outsourcing Center any Confidential Information of the
Disclosing Party or any information or other property of Disclosing Party, in
any form or medium; or (ii) access any such Confidential Information or
computer systems of Disclosing Party, unless expressly set forth in a Statement
of Work hereto.

 

6.3           Upon the termination of this Agreement, any Statement of Work, or upon
request of Disclosing Party, Receiving Party shall: (i) at the Disclosing
Party’s option promptly destroy or return all Confidential Information to the
Disclosing Party, whether in written or electronic form, and neither Receiving
Party nor any of its employees or Personnel shall retain any copies, extracts,
or other reproductions thereof, in whole or in part, in any form whatsoever;
and (ii) take all reasonable steps to assure that all documents,
memoranda, notes, and other writings or electronic records prepared by it which
include or reflect any Confidential Information belonging to the Disclosing
Party and cannot be returned pursuant to (i) above, or, if otherwise
requested by Disclosing Party, are destroyed or erased from its computer
systems.  If requested by Thomson, SP
shall certify in writing its exacting compliance with this provision.

 

6.4           Receiving Party recognizes that Disclosing Party may suffer irreparable
harm as a result of the unauthorized disclosure, reproduction or use of any
Confidential Information of the Disclosing Party and that monetary damages will
be inadequate to compensate Disclosing Party for such breach.  Therefore, Receiving Party agrees that in the
event of any failure to comply with the provisions of this Section, Disclosing
Party shall be entitled to a preliminary injunction, and any other equitable
relief in order to protect and recover the Confidential Information.

 

6.5           Notwithstanding anything herein to the contrary, if disclosure of any
Confidential Information of the Disclosing Party is legally required to be made
by Receiving Party in or pursuant to a judicial, administrative or governmental
proceeding or order or similar proceeding or order of a self-regulatory
organization or otherwise required to be disclosed by law of any governmental
agency (including the SEC), the Receiving Party may make such disclosure but
only to the extent required to comply with the law; provided, however, that if
required, Receiving Party will cooperate if Disclosing Party seeks a protective
order or other legal action to resist such disclosure and shall limit such
disclosure to the minimum required.

 

6.6           Notwithstanding the foregoing, the obligation to treat information as “Confidential
Information” shall not apply to: (i) information received independently
from a third party by the Receiving Party, which third party is not under a
confidentiality obligation to Disclosing Party with regard to such information;
(ii) information in the possession of the Receiving Party prior to the
Effective Date other than by reason of the Services to be performed or received
pursuant to this Agreement; (iii) information that is or becomes generally
available through no wrongful act of either party or (iv) information that
is independently developed by or for the Receiving Party without benefit of the
Disclosing Party’s Confidential Information; provided that, for each of the
foregoing exceptions, the Receiving Party provides the Disclosing Party with
written documentation evidencing the same upon request of the Disclosing Party.

 

11

 

6.7           SP shall advise its Personnel of their obligations under this Section 6
and that such obligations continue even in the event such Personnel leave the
employ of SP (if applicable) or cease work on a Statement of Work, and SP shall
be responsible for each such Personnel’s compliance with such obligations and
shall require each such Personnel to execute Thomson’s “Non-Disclosure
Agreement”, as set forth in Exhibit B or an agreement which is no less
restrictive than the terms set forth therein.

 

6.8           This Section 6 shall survive termination of this Agreement,
regardless of the party that terminated this Agreement or the reasons therefor.

 

7.             Ownership of Work Product:

 

7.1           SP acknowledges that Thomson shall have exclusive, unlimited ownership
rights to all Work Product and all materials, information, works in progress,
and/or deliverables prepared hereunder or developed, conceived, reduced to
practice or fixed in a tangible medium of expression as a result of SP’s
performance hereunder, both as individual items and/or a combination of
components and whether or not a Statement of Work is completed, including,
without limitation, all rights to patents, copyrights, trademarks, trade
secrets, know-how, and other Intellectual Property rights inherent therein or
appurtenant thereto now known or later developed, in any jurisdiction.  Thomson shall be deemed the “author” of the
Work Product within the meaning of the copyright laws.  Work Product shall be deemed to be work made
for hire and made in the course of services rendered and shall belong
exclusively to Thomson, with Thomson having the sole right to obtain, hold and
renew, in its own name and/or for its own benefit, patents, copyrights, and/or
other appropriate protection.  To the
extent that exclusive title and/or ownership rights may not originally vest in
Thomson as contemplated hereunder, SP hereby makes a continuing, irrevocable
assignment, transfer and conveyance thereof, as created, to Thomson, and shall
cause Personnel to make such continuing, irrevocable assignment, transfer and
conveyance thereof, as created, to Thomson, of all right, title and interest
therein including, without limitation, all rights to patents, copyrights,
trademarks, trade secrets, know-how, and other Intellectual Property rights
inherent therein or appurtenant thereto, now known or later developed, in any
jurisdiction. Except for SP Proprietary Intellectual Property, no right or
interest in Work Product is retained by SP, whether by implication, estoppel,
or otherwise.  To the extent that any
such assignment, transfer and conveyance set forth herein may be limited,
prohibited, or without effect, SP, without need for additional consideration,
hereby grants to Thomson an exclusive, irrevocable, perpetual, royalty free,
world-wide, fully transferable (in whole or in part) license to all Work
Product and all materials, information, works in progress, and/or deliverables
prepared hereunder or developed, conceived, reduced to practice or fixed in a
tangible medium of expression as a result of SP’s performance hereunder, both
as individual items and/or a combination of components and whether or not a
Statement of Work is completed, including, without limitation, an exclusive,
irrevocable, perpetual, royalty free, world-wide, fully transferable (in whole
or in part) license to all rights in patents, copyrights, trademarks, trade
secrets, know-how, and other Intellectual Property inherent therein or
appurtenant thereto now known or later 

 

12

 

developed, in any jurisdiction. Upon termination of
any Statement of Work, or this Agreement, or upon Thomson’s earlier request, SP
shall promptly deliver to Thomson all Work Product, including, but not limited
to all works in progress (or any lesser part designated by Thomson in writing)
and all materials, including, but not limited to Thomson Confidential
Information, which Thomson furnishes to SP in connection with this Agreement

 

7.2           At Thomson’s request SP shall execute and deliver, and shall cause its
Personnel to execute and deliver, any documents necessary or useful to give
effect to the provisions of Section 7.1. 
For the avoidance of doubt, no rights of any kind in or with respect to
any Work Product are reserved to SP.

 

7.3           In the event (and to the extent) that any Work Product contains any
items or elements supplied by SP which may be proprietary to any third party, and unless expressly set forth otherwise in
any Statement of Work, SP hereby grants to Thomson an irrevocable,
perpetual, non-exclusive, royalty-free, world-wide license to: (i) use,
execute, reproduce, display, perform, distribute copies of, and prepare
derivative works based on, such pre-existing rights as incorporated into the
Work Product; and (ii) authorize others to do any of the foregoing.

 

7.4           Thomson acknowledges that as part of performing the Services, Personnel
may use proprietary software, including the tools or data, which has been
originated by SP other than as part of its performance hereunder, or which has
been purchased by, or licensed to, SP, as identified in the applicable
Statement of Work (collectively, “SP Proprietary Intellectual Property”).  Thomson agrees that SP Proprietary
Intellectual Property is the sole property of SP (or its licensor) and that SP
(or its licensor) will at all times retain sole and exclusive title to and
ownership thereof.  Notwithstanding the
preceding, SP hereby grants to Thomson an irrevocable, perpetual,
non-exclusive, world-wide, royalty free license to (i) copy for back-up,
archival, and testing purposes, (ii) access, (iii) use, operate, and
maintain, and (iv) modify and create derivative works of the SP
Proprietary Intellectual Property, as necessary or desirable, in each case, for
the proper use, functioning, maintenance, upgrading, and monitoring of Services
and Work Product; and hereby grants the right to do any of the foregoing to third
parties engaged by Thomson, for Thomson’s business purposes.  SP shall deliver to Thomson complete and
correct copies of all such SP Proprietary Intellectual Property in the form
and/or the media being used by SP in connection with the Services and in source
code format including, but not limited to, flow charts, user instruction
manuals, and all other documentation reasonably necessary to support the
purposes of this license thirty (30) days on or before the effective date of
any termination or expiration of Services. 
Thomson may not, without SP’s written consent, distribute the source
code as a stand-alone product or otherwise use the source code in a manner
inconsistent with this license provision. 
In addition, SP may use and employ (i) its general skills,
know-how, techniques, concepts and expertise within its general knowledge and
in the regular course of its business and (ii) any enhancements,
modifications and derivative works to SP Proprietary Intellectual Property of
general application developed by SP during the term of this Agreement and any
Work Order hereunder, subject to, in the case of both (i) 

 

13

 

or (ii), SP’s obligation to protect Thomson’s
Confidential Information under this Agreement.

 

7.5           Upon Thomson’s request, SP shall register, re-register, or release, as
the case may be, all Internet addresses provided by SP to Thomson that are held
by Thomson or SP in connection with the provision of the Services in Thomson’s
name pursuant to the Statement of Work. 
All network identification and access codes issued to Thomson and its
representatives and users by, or on behalf of, SP shall be the sole property of
Thomson.  SP hereby assigns to Thomson
all rights which SP may own or possess in and to such codes and agrees to
execute such documents or take such other actions as may be reasonably
necessary to effect this assignment.

 

8.             Indemnification:

 

8.1           SP will defend, indemnify and save harmless Thomson and each of its
directors, officers, employees and agents against all third party claims,
demands, damages, judgments, costs and expenses (including reasonable attorneys’
fees), taxes and penalties arising out of or related to (i) the use or
possession of the Work Product supplied by SP under this Agreement that
infringes the intellectual property rights, personal privacy rights or data
protection rights of any third party, or any breach of an obligation of
confidentiality owed to any third party (ii) a breach by SP of any
representation, warranty, covenant or agreement made by it in Section 4.1
(i), (ii), (iii), 4.2, 4.3, 4.4, 4.6, or 4.7 or Section 5 or Section 6
of this Agreement, (iii) the gross negligence or willful misconduct of SP,
or (iv) the wrongful death, personal injury, or personal or real property
damage  arising from SP’s acts or
omissions, its employees or agents.   SP
will pay any and all losses and damages with respect to any such third party
claim finally awarded to such third party against Thomson (and any indemnified
party as set forth above) by a court of competent jurisdiction after all
appeals have been exhausted or at the time of a final settlement of such claims
or final award, if applicable, as well as all pre-approved (by SP in writing)
out of pocket expenses (including reasonable attorneys’ fees) incurred by
Thomson as a result of such third party claim. 
If SP fails to assume the defense of any actual or threatened action
covered by this Section 8 within the earlier of (a) any deadline
established by a third party in a written demand or by a court and (b) thirty
(30) days of written notice of the claim, Thomson may follow such course of
action as it reasonably deems necessary to protect its interest, and shall be
indemnified for all costs reasonably incurred in such course of action.

 

8.2           In the event of any infringement, claim (whether pursuant to Section 4.1(iv) or
Section 8.1), or breach arising under Section 8.1, as condition to
such indemnification, Thomson shall (i) notify SP promptly in writing of
any such infringement, breach, or claim of which it has notice; however Thomson’s
failure to give prompt notice shall not relieve SP of any liability hereunder
(except to the extent SP has suffered actual material prejudice by such
failure), (ii) allow SP to have control of the defense, all negotiations
and litigation and settlements resulting from any such action, and (iii) at
the request of SP, afford all reasonable assistance with such negotiations or
litigation at SP’s sole expense.  In
addition, SP shall have the right, with Thomson’s express consent, to settle
any action if 

 

14

 

such settlement (a) does not contain a
stipulation to or admission or acknowledgement of, any liability or wrongdoing
on the part of Thomson, (b) does not involve the incurrence of any costs
or expenses by Thomson, and (c) does not impose any obligation upon
Thomson.  Thomson reserves the right, at
its sole cost and expense, to participate in the defense of any matter subject
to indemnification by SP.

 

8.3           If a third party claim or demand is made or action brought to which
Subsection 8.1 (i) may apply or in which Section 4.1(iv) may
apply, or in Thomson’s or SP’s reasonable opinion is likely to be made or
brought, SP shall at its own expense, either: (i) modify any or all of the
Work Product without reducing the performance and functionality of the same, or
substitute alternative Work Product or services of equivalent performance and
functionality for any or all of the Work Product, so as to avoid the
infringement or breach, or the alleged infringement or breach; (ii) procure
a license to use the Work Product on terms which are reasonably acceptable to
Thomson; or, if neither of these remedies in clause (i) or (ii) are
reasonably available to SP, (iii) SP may cause Thomson to cease using the
infringing Work Product and remove the infringing or violative Work Product and
refund to Thomson all fees paid for such Work Product that are the subject of
such a claim (and any Work Product made unusable by the removal of such
infringing Work Product).

 

8.4           SP shall have no obligation under Subsection 8.1(i) for any
infringement or misappropriation claim resulting directly from: (i) any
unauthorized modification by Thomson or a third party if and only to the extent
that such modification caused such infringement; (ii) any aspect of
Thomson’s software, documentation or data which existed prior to SP’s
performance of the Services and was used directly in connection with creating
and/or providing the Work Product; (iii) Thomson continuing the allegedly
infringing activity after being informed and provided with modifications that
would have avoided the alleged infringement; or (iv) with respect to a
patent infringement claim only, SP’s compliance with Thomson’s designs,
specifications or instructions if and only to the extent that such use caused
such infringement.

 

8.5                               Except as otherwise provided in this Agreement, the foregoing Sections
8.1-8.5 state SP’s entire liability and obligations and Thomson’s sole and
exclusive remedy for any patent, copyright or other intellectual property
infringement claims against the Work Product under this Agreement, including a
breach of Section 4.1(iv), and is in lieu of any warranty of title,
non-infringement and the like.

 

8.6           Thomson will defend, indemnify and save harmless SP and each of its
directors, officers, employees and agents against all third party claims, and
demands and damages, judgments, costs and expenses (including reasonable
attorneys’ fees), taxes and penalties arising out the use or possession of any
existing Thomson code, designs or architecture supplied by Thomson under this
Agreement and used by SP in conjunction with the Work Product that infringes
the intellectual property rights, personal privacy rights or data protection
rights of any third party, or any breach of an obligation of confidentiality
owed to any third party by 

 

15

 

Thomson, except Thomson shall have no liability for
any such claim based on the combination or use of the code, designs or
architecture with materials not furnished by Thomson, if, but for such
combination, no such claim would have occurred.

 

9.0           Payment
Terms / Pricing:

 

9.1           Thomson agrees to pay the fees for Services and Work Product in accordance
with the payment provisions and at the charge rates contained in each
applicable Statement of Work.  Payments
shall be due and payable at the times specified in such Statement of Work.  If SP discovers or is advised of any errors
or exceptions related to its invoicing for Services, SP and Thomson will
together review the nature of the errors or exceptions, and SP will, if
appropriate, promptly adjust the relevant invoice(s) or refund
overpayments.

 

9.2           Payment to SP will be subject to any withholding tax provisions as may
be applicable.  SP is responsible for
paying any and all license fees and taxes levied, assessed or imposed on SP to
enable it to perform Services under each Statement of Work.  Any applicable state and local VAT, sales or
use tax, goods and services tax or any similar tax due on Services performed
under each Statement of Work are the duty of SP to collect and shall be
separately stated on all invoices as such, which invoices shall comply with the
requirements of the relevant taxing authority. 
However, SP shall not collect any VAT, sales or use taxes, goods and
services taxes or any similar taxes on Services for which Thomson furnishes a
properly completed Exemption Certificate. 
In the event that SP is entitled to claim a foreign tax credit benefit
with regard to withholding taxes associated with cross border payments under
any Statement of Work, Thomson shall not be charged or otherwise billed for
such taxes.  SP shall indemnify and save
Thomson completely harmless against all costs and liabilities which Thomson may
incur with respect to SP’s failure to make any of the payments referenced in
this Section 9.2.

 

10.           Insurance Coverage; Limitation of Liability:

 

10.1         Without limiting its liabilities under this Agreement, including Section 8
and this Section 10, SP shall maintain in force during the term of this
Agreement, insurance coverages at the following levels:

 

10.1.1     Commercial
General Liability Insurance - $2,000,000 per occurrence limit and $2,000,000
general aggregate limit;

 

10.1.2     Workers
Compensation and Employers Liability Insurance — in accordance with current
statutory limits; and

 

10.1.3     Professional
Liability, including Media Liability, Insurance - $1,000,000 per
occurrence limit and $3,000,000 general aggregate limit.

 

10.1.4     All
required insurance must be issued by an insurance company that has an “A”
rating.  If SP fails to produce evidence
of insurance coverage at the 

 

16

 

reasonable written request of Thomson, then Thomson
may terminate this Agreement with immediate effect.  SP agrees to name Thomson as an additional
insured under its Commercial General Liability Insurance policy.  SP shall not modify or cancel any coverage
hereunder without providing prior written notification to Thomson of such
proposed action.

 

10.2         NEITHER SP NOR THOMSON SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT,
SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH OR ARISING OUT
OF THIS AGREEMENT, EVEN IN THE EVENT THAT IT IS ADVISED OF THE POSSIBILITY THAT
SUCH DAMAGES MAY ARISE, OR THAT SUCH DAMAGES MAY HAVE BEEN
FORESEEABLE.

 

10.3         SP’S LIABILITY TO THOMSON FOR DIRECT DAMAGES ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR THE SERVICES SHALL NOT EXCEED THE TOTAL FEES
PAID BY THOMSON UNDER THE RELEVANT STATEMENT OF WORK GIVING RISE TO SUCH CLAIM,
WHETHER SUCH LIABILITY IS BASED ON AN ACTION IN CONTRACT, WARRANTY, STRICT
LIABILITY OR TORT (INCLUDING, WITHOUT LIMITATION, NEGLIGENCE) OR OTHERWISE.

 

10.4         THOMSON’S LIABILITY TO SP FOR DIRECT DAMAGES ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR THE SERVICES SHALL NOT EXCEED, IN THE
AGGREGATE, THE TOTAL FEES PAID BY THOMSON TO SP DURING THE PRECEDING TWELVE
(12) MONTHS UNDER THE RELEVANT STATEMENT OF WORK WHETHER SUCH LIABILITY IS
BASED ON AN ACTION IN CONTRACT, WARRANTY, STRICT LIABILITY OR TORT (INCLUDING,
WITHOUT LIMITATION, NEGLIGENCE) OR OTHERWISE.

 

10.5         NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, THE ABOVE
LIMITS SET FORTH IN SECTION 10.2 AND SECTION 10.3 SHALL NOT APPLY TO
LIABILITY ARISING FROM SP’S BREACH OF SECTION 2.12, 4.2, 4.4, 4.7, 6, 7 OR
13 OF THIS AGREEMENT AND LIABILITY ARISING FROM SP’S OBLIGATIONS UNDER SECTION 8
OF THIS AGREEMENT.  THE ABOVE LIMITS SET
FORTH IN SECTION 10.2 AND SECTION 10.4 SHALL NOT APPLY TO LIABILITY
ARISING FROM THOMSON’S BREACH OF SECTION 6 OR 7.4 OF THIS AGREEMENT AND
LIABILITY ARISING FROM THOMSON’S OBLIGATIONS UNDER SECTION 8.6.

 

11.           Term and Termination:

 

11.1         The Term of this Agreement begins on the Effective Date and shall
continue through September 9, 2009, at which time it shall automatically
terminate unless extended by the parties in a writing signed by each of them,
or unless terminated early, as set forth below.

 

17

 

11.2         Either Thomson or SP may terminate this Agreement at any time and for
any reason by giving written notice of termination ninety (90) days in advance
to the other party.  Neither Thomson nor
SP shall be liable to the other as a result of termination of this Agreement
for any costs, claims, losses, damages or liabilities including, without
limitation, loss of anticipated profits. 
If the Agreement is terminated, Services under all Statements of Work
issued to SP shall be completed by SP in accordance with the terms of the
respective Statements of Work and this Agreement, which shall be deemed to
remain in effect for purposes only of completing each Statement of Work.  Notwithstanding anything herein to the contrary,
Services under any Statement of Work may be  terminated by
Thomson, at its sole discretion, as provided in Section 11.3 below.

 

11.3         Without effect on this Agreement for purposes of any other Statements of
Work, Thomson may, at any time and for any reason, terminate the Services in
whole or in part under any Statements of Work on 45 days prior written notice
to SP and SP shall promptly comply.  In
the event Services under a Statement of Work are terminated, SP will deliver to
Thomson all completed portions of those Services performed up to the date of
termination, and Thomson shall promptly pay, subject to the other provisions of
this Agreement, (i) for the terminated Services authorized by Thomson and
satisfactorily performed by SP to the date of termination, and (ii) for
direct costs that SP incurs in terminating those Services, provided those costs
(a) were authorized in advance by Thomson, and (b) are properly
supported by invoices and the like. 
Subject to the provisions of this Agreement, Thomson’s sole liability to
SP for terminating any or all Services under a Statement of Work is contained
in this Section 11.3 and Thomson shall not be liable to SP for any costs,
claims, losses, damages or liabilities including, without limitation, loss of
anticipated profits or reimbursement for Services unperformed as a result of
the termination.

 

11.4         Either Thomson or SP may immediately terminate this Agreement or any
Statement of Work if the other party or any of its personnel materially
breaches any of the terms of this Agreement and said breach is not cured within
thirty (30) days after receipt of notice of default thereof from the
non-breaching party.  Notwithstanding
this Section 11.4, SP may not terminate this Agreement for a period of up
to 90 days upon Thomson’s failure to pay any amount that is reasonably disputed
by Thomson in good faith so long as (i) Thomson notifies SP promptly after
the receipt of the notice of default specified in this Section 11.4 of any
disputed amount being withheld from SP and specifies the reasons why that
amount is disputed and (ii) all amounts not disputed are paid as due.  However, if any invoice is unpaid in
accordance with the terms herein and has not been disputed in good faith in
writing by Thomson within 7 business days of its due date, SP shall also have
the right, upon 15 business days’ written notice, to suspend performance under
this Agreement until such time as the amount that is unpaid is paid in
full.  To the extent that any portion of
an invoice is disputed in good faith in writing by Thomson as set forth above,
Thomson agrees to pay the non-disputed portion of the invoice in accordance
with the terms of this Agreement.

 

18

 

11.5         If either party repeatedly fails to perform any of its obligations or
breaches any representations under this Agreement, regardless of whether such
failures or breaches are cured and where such repeated failures have a material
effect, the other party may, upon further notice of default to the breaching
party, terminate all or part of the Services as of the date specified in such
notice of default.

 

11.6         Thomson may immediately terminate this Agreement or any Statement of
Work if SP or any of its consultants, agents, or subcontractors (i) threatens
to cease or ceases business as a viable enterprise, commits any act of
insolvency (or bankruptcy) or winding-up or becomes subject to any proceeding
under an insolvency (or bankruptcy) law; (ii) becomes insolvent; (iii) makes
a general assignment for the benefit of creditors; (iv) ceases conducting
business in the ordinary course; or (v) files a petition under bankruptcy
law or any other insolvency law providing for the relief of debtors, or any
such petition is filed against it, and SP fails to have such petition lifted or
stayed within five days from the date on which it is entered.

 

11.7         Thomson may, within 90 days of written notice of a change of control
immediately terminate this Agreement or any Statement of Work on 10 days prior
written notice in the event of a change in control of SP.  For purposes of this Section 11.7,
change in control shall mean the acquisition by a person not now in control
(within the meaning of this definition) of more than fifty-one percent (51%) of either the voting power or value of
the outstanding capital of SP or the right to elect at least fifty-one  percent (51%) of the directors of SP but shall not include
any transaction involving a public offering of SP’s securities or a private
equity financing round.

 

11.8         The rights and obligations of the parties to this Agreement which
expressly or by implication comes into or continues in force after the date of
termination or expiration of this Agreement, including Sections 4, 5, 6, 7, 8.
9, 10, 11.8, 11.9, 11.10, 15 and 19 shall survive its termination or
expiration.

 

11.9         Upon termination of this Agreement for any reason, Thomson will be
entitled to all Work Product, works in progress, information, data and files up
to the date of termination in the form in which they exist at that time,
including, without limitation source code for all such materials

 

11.10       In
the event of termination for any reason, SP agrees during a six (6) month
transition period (“Transition Period”), on a time and materials basis at
mutually agreed rates consistent with SP’s rates current at the time of
termination which are (1) authorized in advance by Thomson, and (2) properly
supported by documentation, including but not limited to timesheets, invoices, etc.
to: (i) cooperate with Thomson in effecting the orderly transfer and
migration of the Services to another third party as designated by Thomson or
the resumption of the Services by Thomson upon Thomson’s request, including any
and all knowledge gained during the term of this Agreement; (ii) provide
access to its Personnel; and (iii) continue to perform those Services as
requested by Thomson which may be necessary or useful to effect such
transfer.  During this Transition Period,
SP shall answer all reasonable and pertinent verbal or written questions from
Thomson or 

 

19

 

its representative regarding Services and deliver to
Thomson all reports and documentation relevant to Services in SP’s
possession.  In addition, SP shall
certify upon the cessation of the Transition Period that SP has returned to
Thomson or erased or destroyed, as directed by Thomson, all of the Thomson
Confidential Information, data and materials in its possession, including all
archival tapes used for back up purposes.

 

11.11       In
the event an entity or business unit of Thomson is sold or otherwise divested
(the “Divested Entity”), SP shall upon Thomson’s request, provide all or part
of the Services to the Divested Entity for the remaining duration of any
applicable Statement of Work only (on the basis that the new owner of the
Divested Entity shall be deemed to fall within the definition of Affiliated
Entity only for the purpose of accepting assignment of an existing Statement of
Work, and each reference to “Thomson Healthcare Inc.,” “Thomson,” and “Affiliated
Entity” herein shall be replaced with the name of the Divested Entity as though
this Agreement had been amended, all without need for additional
consideration).

 

12.           Relationship:

 

12.1         The relationship between Thomson and SP is that of independent
contractors.  Neither Thomson nor SP is
an agent for the other and neither has any authority to make any contract,
whether expressly or by implication, in the name of the other party, without that
party’s prior written consent.

 

13.           Data Protection and Security:

 

13.1         If SP provides Services to Thomson from an Outsourcing Center that is
shared with a third party, SP shall develop a process, subject to Thomson’s
review and consent, to prohibit electronic, logical, and physical access in any
such shared environment to Thomson Confidential Information and other Thomson
data, materials, and information.   As
part of the Services, SP shall establish, implement, and maintain safeguards
against the destruction, loss, alteration or unauthorized disclosure of Thomson
Confidential Information, data, and materials in the possession of SP in
accordance with SP’s IT Infrastructure Policy dated as of September 1,
2004 (“IT Policy”) and SP’s Business Continuity Plan dated March 2003 (“BCP
Plan”), all the terms and conditions contained in this Agreement and  Thomson’s security standards as set out in a
Statement of Work, or as provided to SP by Thomson from time to time, including
the use of routine data back ups, passwords and access codes.  SP shall establish, maintain, and enforce
safety and security procedures that are at least: (i) equal to industry
best practices for facilities similar to the Outsourcing Center, as those
evolve from time to time, and (ii) as rigorous as those procedures in
effect currently at SP’s facilities. As part of the Services, SP shall maintain
safety and security procedures for Thomson’s operating system environment and
telecommunications infrastructure which protect the data and information of
Thomson, its customers, and its suppliers from unauthorized access SP shall
inform Thomson of any breaches in security or potential breaches in security,
including any breach or potential breach of a LAN or telecommunications network
which, contains, processes, or transmits Thomson Confidential Information, data
or materials. 

 

20

 

Upon reasonable prior notice, Thomson’s employees and
agents shall have access, at all reasonable times, to all Outsourcing Centers
used in the performance of Services during the term of this Agreement related
to Thomson’s audit of the physical security of such Outsourcing Centers,
consistent with the purposes of this Section 13.1, or as may be required
by law or regulation with respect to storage, access, use, and security of any
such data and materials, subject to compliance with the security measures in
effect at such Outsourcing Center.

 

SP
shall be responsible for any and all security breaches of those systems that it
manages, maintains, or uses in respect of the Services  SP shall, as may be specified in a Statement
of Work, operate and maintain such audit and tracking software as Thomson may
request from time to time.

 

13.2         SP shall be accountable for the integrity of any test or measurement
data, including its generation, recording, reporting and retention, provided by
SP to Thomson or to any third party(s) on behalf of Thomson.  SP agrees that for any such data, SP shall
use all reasonable commercial efforts to ensure that:

 

13.1.1     Measurement
activities and information reported from measurement shall be complete,
accurate, and timely.

 

13.1.2     Specified
industry standard test methods and instrument calibration procedures shall be
used without modification, unless that modification has been approved by
industry standard and/or by Thomson.

 

13.1.3     Personnel
involved in testing and measuring are trained in the necessary skills involved
in data generation and data management. 
This shall include initial and ongoing personnel training, testing, and
verification of knowledge transfer.

 

13.1.4     SP
shall utilize a self-monitoring and assessment system to determine the extent
to which the requirements above are being met. 
This system shall include the resolution of all problems found in the
assessments, with plans and responsibilities for appropriate follow-up.

 

14.           Force Majeure/ Disaster Recovery Plan:

 

14.1         Neither Thomson nor SP shall have any liability to the other for failure
to perform its obligations delay or loss occasioned by circumstances which are
outside the party’s reasonable control to prevent, including without limitation
war, strike (other than by SP’s Personnel or Thomson’s employees), lock-out,
fire, explosion, natural disaster (“Force Majeure”).  If such delay or failure continues for at
least thirty (30) days, the party not responsible for such delay or failure
will be entitled to terminate the Agreement by notice in writing if such delay
or failure is not cured within such 30 day period.  In this event, any moneys paid by Thomson in
advance of the performance of Services, or moneys paid in advance of completion
of a final deliverable, will be repaid by SP on a pro rata basis.  Notwithstanding the foregoing, the occurrence
of a Force Majeure event does not limit or otherwise affect SP’s obligation to
provide either normal business continuation procedures or any other disaster
recovery services as described in Section 14.2.

 

14.2         As part of the Services, SP shall: (i) within thirty (30) days of
the Effective Date, develop and submit to Thomson a disaster recovery plan (“DRP”)
for the 

 

21

 

Outsourcing Center; (ii) unless Thomson rejects
such DRP within thirty (30) days of Thomson’s receipt of the proposed DRP,
implement and manage the DRP for the Outsourcing Center and assist with the
preparation and implementation of a DRP for all other locations where Services
may be performed; (iii) within ninety (90) days of Thomson’s written
approval of the DRP, and at least once every calendar year during the term of
this Agreement, update and test the operability of the DRP in effect at that
time; (iv) upon Thomson’s request, certify to Thomson that the DRP are
fully operational; and (v) upon discovery by SP, immediately provide Thomson
with notice of a disaster and implement the DRP applicable to SP’s Outsourcing
Center and assist Thomson with implementing DRP at any other location upon the
occurrence of a disaster at an Outsourcing Center or other location affecting
the provision of the Services.  In the
event that Thomson rejects the DRP developed under Section 14.2 (i) above,
SP shall revise the DRP to meet Thomson’s reasonable approval within fifteen
(15) days of its receipt of the rejection. 
Subject to Section 14.3, SP shall re-institute the Services as set
forth in the DRP.  In the event of a
disaster at an Outsourcing Center, SP shall not increase its charges under this
Agreement or charge Thomson additional fees

 

14.3         Whenever a Force Majeure Event or a disaster causes SP to allocate
limited resources between or among SP’s customers and affiliates, Thomson shall
receive at least the same priority in respect of such allocation as SP’s other
best commercial customers.

 

15.           Record Retention / Audit:

 

15.1         During the Term and for a period of seven (7) years following the
termination date of this Agreement (the “Retention Period”), SP shall maintain
complete and accurate records and supporting data in accordance with United
States’ generally accepted accounting practices.  Upon reasonable prior notice during the
Retention Period, Thomson’s employees and agents shall have access to, and the
right to reproduce, SP’s and its subcontractor’s relevant books, records,
correspondence, instructions, plans, drawings, receipts, vouchers, financial
accounts, data stored in computer files, and memoranda of every description
pertaining to Services for the purpose of verifying costs of any or all
Services and SP’s compliance with the terms of this Agreement and any Statement
of Work.  SP agrees to include the
necessary provisions in its contracts with its subcontractors that shall assure
access by Thomson’s employees and agents to applicable records of those
subcontractors.  Thomson shall not be
liable for any of SP’s or its subcontractor’s costs resulting from an audit
hereunder.  SP further agrees that
records of all development work will be kept according to the standards that
Thomson requires for its own work, provided however that such standards are provided
in advance to SP.

 

16.           Transfer or Assignment:

 

16.1         The rights and obligations of each party in or arising under this
Agreement are personal to such party and may not be assigned or transferred to
a third party without the previous written consent of the other party, provided
that Thomson Healthcare Inc., may assign this Agreement in whole or in part to
any Affiliated 

 

22

 

Entity, and each party may assign this Agreement to a
third party in connection with any sale or merger, provided further that such
assignee agrees in writing to assume and be bound by all of the obligations
under this Agreement, except that Virtusa must obtain the prior written consent
of Thomson for any such assignment, which shall not be unreasonably withheld or
delayed.

 

16.2         SP shall not sub-contract any of its obligations under this Agreement
except as set forth in Section 2.5 and Section 2.9.

 

17.           Publicity:

 

17.1         SP shall not, without the prior written consent of Thomson (i) use
the name, logo, trade dress, or any trade name or trademark of Thomson
Healthcare Inc., any Thomson business unit or division or any of its Affiliated
Entities in any advertising or communications to the public in any format; or (ii) make
publicity releases or announcements regarding the terms of this Agreement, any
Statement of Work, the Services performed or any related activities.

 

18.           Dispute Resolution Procedure:

 

18.1         In the event of any dispute between Thomson and SP arising from or
relating to this Agreement, the Relationship Managers designated by each party
(or their respective designees if either person is unavailable) shall attempt
to resolve the dispute in good faith for a period of three (3) business
days following the date either party first provides a written notice of the
dispute to the other requesting that the dispute be resolved in accordance with
the procedures contained in this Subsection 18.1.  If the dispute is not resolved by the end of
such period, the dispute shall be escalated to the level of Vice President  (or their respective designees if either person is
unavailable) and such representatives shall attempt to resolve the dispute in
good faith for a period of three (3) additional business days.  If the dispute is still not resolved by the
end of such additional period, the dispute shall be further escalated to a more
senior executive of each party and such representatives shall attempt to
resolve the dispute in good faith for a final period of ten (10) additional
business days.  Except for those disputes
where injunctive relief may be an appropriate remedy, no formal proceedings
relating to such dispute may be commenced until the parties complete the
dispute escalation procedures set forth in this Subsection 18.1 without
reaching a resolution (or if either party breaches the provisions of this
Subsection 18.1).

 

19.           Miscellaneous:

 

19.1         In the event that any provision or part thereof of this Agreement is
held to be invalid or unenforceable in any jurisdiction, it shall be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Agreement and no such prohibition
or unenforceability in any jurisdiction shall invalidate such provision in any
other jurisdiction.  The remaining
provisions and parts of this Agreement shall remain in full force and effect,
and shall be read and construed as if the void or unenforceable provisions were
originally deleted.  No forbearance or
delay by either party in enforcing its 

 

23

 

respective rights will prejudice or restrict the
rights of that party.  The waiver by
either party of any default or breach of this Agreement shall not constitute a
waiver of any other or subsequent default or breach.

 

19.2         This Agreement, including any Schedules, Exhibits or other attachments
hereto, constitutes the entire agreement between Thomson and SP and supersedes
all previous agreements, written or oral, with respect to the provision of the
Services or the Work Product.  This
Agreement may not be modified or amended except in writing signed by a duly
authorized representative of each party.

 

19.3         Unless otherwise specified herein, the rights and remedies of each party
set forth in this Agreement are not exclusive and are in addition to any other
rights and remedies available to it at law or in equity.

 

19.4         This Agreement will be governed by and construed according to the laws
of the State of New York, United States, without regard to any conflicts of
laws provisions  and without regard to
the United Nations Convention on Contracts for the International Sale of
Goods.  The parties hereby consent to the
personal jurisdiction of, and agree on behalf of themselves and any person
claiming by or through them that the sole jurisdiction and venue for any
litigation arising from or relating to this Agreement shall be an appropriate
federal or state court located in the Borough of Manhattan, City of New York,
State of New York.  SP and Thomson each
agree that in the event of any claim by one party against the other under this
Agreement, the prevailing party shall be entitled to be paid by the
non-prevailing party, the prevailing party’s reasonable attorney fees and costs
and other related expenses.

 

19.5         This Agreement is non-exclusive. Except as provided herein, each of the
parties remains free to enter into arrangements or agreements with other third
parties, subject to the terms and conditions contained herein.  SP acknowledges that this Agreement permits
Thomson to obtain Services through issuance of Statements of Work, each of
which shall be a non-exclusive contract for Services.  Thomson retains the right to engage others to
perform the same type of services without any liability to SP, and Thomson
makes no representation as to the number, frequency or dollar value of
Statements of Work under this Agreement.

 

19.6         To the extent of any conflict or inconsistency between the terms and
conditions of this Master Services Agreement and the terms and conditions of
any Statement of Work or other document signed by Thomson and SP, the terms and
conditions of this Agreement will control,. 
Neither Thomson’s nor SP’s acceptance of any such document, including,
without limitation, any Statement of Work, Service Level Agreement, or
requirements document, shall be construed as an acceptance of provisions which
are in any way in conflict or inconsistent with this Agreement.

 

19.7         Each of Thomson and SP agrees that, subsequent to the execution and
delivery of this Agreement and without any additional consideration, each of
Thomson and SP shall execute and deliver any further legal instruments and
perform any acts that are or may become necessary or desirable to effectuate
the purposes of this Agreement.

 

24

 

19.8         Headings have been included for convenience only and shall not be used
in construing any provision of this Agreement.

 

19.9         The parties agree that neither SP nor the Thomson entity or division for
which any SP resources have performed services under a Statement of Work shall
directly or indirectly hire, or engage as a consultant/employee, (i) with
respect to SP, any Thomson resource who performed services under such Statement
of Work, and (ii) with respect to Thomson, any SP Restricted Personnel as
defined in Section 2.12, in each case, during the term of such Statement
of Work and for a period of 6 months thereafter.  Nothing contained herein shall prevent either
party or any of their affiliates or Affiliated Entities from hiring any such employee
who responds to a general hiring program conducted in the ordinary course of
business not specifically directed to such employees or who approaches the
other party on an unsolicited basis.

 

25

 

Schedule 1.5

 

Outsourcing Center Specifications

 

OPERATING HOURS:

 

SP’s Personnel will operate the Outsourcing Center
from 8:30am to 6pm, local time, Monday through Friday.  However, the facility must be available to
resolve all issues on a 24x7 basis.

 

SP will communicate to Thomson in writing annually all
dates on which the facility will be closed due to holidays at the beginning of
the calendar year and initially before the signing of this contract.

 

STAFFING:

 

SP must provide Thomson with resource plans and
detailed billing information monthly at the beginning of each month for the
previous period, as well as a projection for the next month.

 

SP must present Thomson with a staffing rotation plan
at the beginning of a transition project and on a quarterly basis.

 

KEY RESOURCES ASSIGNED TO OC FOR THOMSON
PROJECTS:

 

LOGISTICS:

 

SP RESPONSIBILITIES:

 

1.         Development will be done with data remaining resident in Thomson
environments. Where required for ensuring reasonable response timings to ensure
productivity of developers based in India, SP will create a suitable
development environment with assistance from Thomson at SP’s expense.

2.         [SP Service Level Agreement (“SPSLA”)
and SP Operating Level Agreement (“SPOLA”) will be developed for each application taken offshore.  Specific details will vary by application and
be noted in the individual Statement of Work.]

3.         Onshore managers will establish their personnel in a working environment
according to the policies and procedures provided.

4.         Onshore managers are responsible for all Thomson equipment removed from
Thomson premises.  Everything must be
itemized and signed for using current policies and procedures.

5.         SP’s managers at Thomson Sites must notify Thomson’s managers,
facilities, and security of terminations or transfers, obtaining access badges
and cards and all Thomson equipment.

6.         Local Time will be used to track each individual’s hours worked with the
exception of fixed bid projects.

7.         SP will provide desktops with appropriate office and development tools
in their own environments within the offshore facility to support local
development and testing activity.

 

26

 

8.         All SP Personnel will adhere to existing security policy and procedures
concerning both physical and data security.

9.         Software configuration management policy and procedures will be adhered
to including use of version control software that is resident in Thomson
facilities.

10.       SP
will prepare a Statement of Work in conjunction with Thomson, to be mutually
agreed by the parties.

11.       SP
has overall responsibility to create business recovery plans to support Thomson’s
business in the event of a business interruption.  [SP will participate in Thomson business recovery planning meetings in
support of all applications that SP manages for Thomson.  SP will create test plans, scripts, and data
in support of Thomson’s business recovery exercises, and SP will be present at
any location(s) designated by Thomson during the business recovery
exercises to execute the test plans and scripts.  SP will be responsible for verification of
successful recovery of applications supported by SP during the business
recovery exercises.]

 

SECURITY:

 

SP will establish and maintain a secure [and dedicated] location within its facilities to house the
technology components and people resources required to support Thomson.  [This area will have
access limited to Personnel assigned to Thomson.]  In addition the technology components will
have additional security and access limited to only those Personnel assigned to
maintain and support the technology.

 

All documents and work products in soft and hard copy
formats are to be secured and available only to Personnel on a “need to access”
basis. All documents related to Thomson are to be retained within the
Outsourcing Center and shall not be taken out of the facility without Thomson
authorization.  All work, property, and
documents contained in SP’s knowledge repository relating to Thomson are to be
copied to Thomson on a [monthly]
basis.

 

27

 

[FOR
DISCUSSION PURPOSES ONLY]

 

EXHIBIT A

 

STATEMENT
OF WORK

 

This Statement of Work consists
of the following documents and agreements each of which is incorporated into
and forms an integral part hereof
                                           ;
and is entered into between SP and Thomson subject to the terms and conditions
of the Master Services Agreement between Thomson and SP dated
                    .
The effective date of this Statement of Work is
                  .

 

Part A

Scope of Work

Project Plan and Deliverables

Project Milestones

Project Process for Risk
Management & Reporting

Special Hardware/Software
Requirements

Acceptance Criteria

Additional Warranties/ Warranty
Period if longer than 6 months

SP Proprietary Intellectual
Property (if any)

 

Part B

Scope of Team/ Support

Standards and Procedures

Staffing Requirements

Key Resources

Minimum Signatures

Metrics, Reporting, and Service
Levels

Escalation Procedures

 

Part C

SP Service Level Agreement

Staffing Requirements

Severity Levels and Expected
Responses Times

Response Measures and Reporting
Procedures

 

Part D

Rate Schedule

Milestone Payments

Retention Payment

 

In witness whereof, the parties
have executed this Statement of Work and agree to bound by its terms as of this
       day of
          , 2004.

 

	
  SP

  	
   

  	
   

  	
  Thomson

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

28

 

EXHIBIT B

Employee
Non-Disclosure Agreement

 

THIS AGREEMENT is made this
       day of
                  
2004, by and between                               ,
with an address at
                                                                      
(the “Contractor”) and Thomson Healthcare Inc., with an address at 6200 South
Syracuse Way, Greenwood Village, CO 80111 (the “Company”).

 

WHEREAS, the Contractor desires to obtain certain
non-public, confidential or proprietary information from the Company; and

 

WHEREAS, the Company desires to provide such
information and/or materials to the Contractor under certain conditions as
hereinafter provided.

 

NOW, THEREFORE, in consideration of the mutual
promises and covenants hereinafter set forth, the parties hereto agree as
follows:

 

1.               The Company will make available and disclose to the Contractor such
materials, processes and data as the Company deems necessary and desirable to
the Contractor’s tests, analysis, review, study and evaluation (the “Information”).  The Contractor shall exercise due diligence
to maintain all Information in confidence; “due diligence” shall mean at least
the same precautions and standard care which a reasonable person in such
business would use to safeguard its own proprietary information.

 

2.               The Contractor agrees that the Information shall at all times remain the
property of the Company and shall not be used or disclosed to anyone by the
Contractor without the prior written consent of the Company.  Upon completion of the Contractor’s tests,
analysis, review, study and evaluation, the Contractor shall return to the
Company all of the Information supplied to the Contractor or obtained by the
Contractor on behalf of the Company, and shall deliver to the Company or, at
the election of the Company, destroy any notes, drawings and other documents
not supplied by or on behalf of the Company and containing the Information.

 

3.               The Contractor agrees to permit access to the Information only to its
employees who need to know the Information for the purposes set forth herein
and who shall agree to be bound by the terms and conditions of this
Agreement.  In any event, the Contractor
shall be responsible for any breach of this Agreement by its employees.

 

4.               The term “Information” does not include information that (a) is or
becomes generally available to the public other than as a result of disclosure
by the Contractor or anyone to whom the Contractor transmits the information,
(b) becomes available to the Contractor on a non-confidential basis from a source
other than the Company who is not bound by a confidentiality agreement with the
Company, (c) the Contractor can document was known to the Contractor or in its
possession prior to the date of disclosure by the Company, or (d) is
independently developed by the Contractor without reference to the Information.

 

5.               In the event that the Contractor or anyone to whom it transmits the
Information becomes legally compelled to disclose any of the Information, it
will provide the Company with prompt notice so that the Company may seek a
protective order or other appropriate remedy 

 

 

and/or waive compliance with the provisions of
this Agreement.  In the event that such
protective order or other remedy is not obtained, or that the Company waives
compliance with the provisions of this Agreement, the Contractor will furnish
only that portion of the Information which is legally required and exercise its
best efforts to obtain a protective order or other reliable assurance that
confidential treatment will be accorded the Information.

 

6.               The Contractor agrees that, in the event of any breach of this
Agreement, the Company would be irreparably and immediately harmed and could
not be made whole by monetary damages. 
Without prejudice to any rights and remedies otherwise available, the
Company shall be entitled to equitable relief by way of injunction if the
Contractor breaches any provision of this Agreement.

 

7.               This Agreement will be governed by and construed under, the laws of the
Commonwealth of Pennsylvania, without regard to the principles of choice of
law.

 

8.               This Agreement represents the entire understanding and agreement of the
parties and supercedes all prior agreements and understandings relating to the
subject matter hereof. This Agreement may not be modified or amended, except by
a written instrument duly executed by both parties.  This Agreement may not be assigned by the
Contractor.

 

9.               The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of the other provisions of this
Agreement, which shall remain in full force and effect.  If any of the provisions of this Agreement
shall be deemed to be unenforceable by reason of its extent, duration, scope or
otherwise, then the parties contemplate that the court making such
determination shall enforce the remaining provisions of this Agreement, and
shall reduce such extent, duration, scope or other provision and shall enforce
them in their reduced form for all purposes contemplated by this Agreement.

 

10.         This Agreement may be executed in counterparts, each of which shall be
deemed an original and all of which shall constitute one and the same
instrument.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed by their duly authorized representatives on the
date first written above.

 

 

	
  THOMSON HEALTHCARE INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  (CONTRACTOR)

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

EXHIBIT C

 

Assignment Agreement

 

 

EXHIBIT D

 

Notebook Security Policy

 

NOTEBOOK SECURITY -- PROTECTING
DATA AND PROPERTY

 

Frank Licata, Sr. Vice President
& CTO

January, 2001

 

Notebook computers and today’s mobile computing
environment pose special risks to employees using mobile computing resources. Employees
must take special care to:

 

·                  prevent loss of the notebook computer

 

·                  prevent unauthorized access to the notebook computer

 

·                  prevent compromise of sensitive data

 

·                  protect against viruses on the notebook computer

 

·                  protect against risks posed by inadequate data backup

 

Notebook computers present special data security risks
because notebooks are frequently used outside the office or in unattended areas
within the building. Key notebook data security risks are:

 

Loss and theft

 

·                  The notebook rate of theft is now growing at a greater rate than the number
of notebook computers in use. They are easy to store, easy to transport, easy
to steal and easy to sell!

 

·                  In-house
theft is the most common, and airport theft the second most common.

 

·                  Ease of access -- notebook computers are frequently used in insecure
locations - conference rooms, temporary offices and airports, to name a few.
The informal protection afforded by an individual’s personal workspace is gone,
and equipment goes missing.

 

Data Compromise. Data compromise usually results from one of four security lapses:

 

·                  Loss or theft of the notebook computer

·                  Unauthorized access to the notebook computer for a long enough period to
view or copy data

·                  Loss or theft of data copied to diskettes for printing, backup or data
transfer

·                  Interception or compromise of data transmitted over telephone lines or
the Internet

 

Reducing Notebook Data Security Risks

 

Notebook data security risks cannot be eliminated. The
risks can, however, be reduced to a minimum:

 

 

Physical Security

 

Physical security is the primary concern in notebook
computer security. If a notebook computer is never out of the possession and
control of the owner, then the risks of unauthorized loss or theft and
unauthorized access are virtually eliminated. Thus, the risks of data
compromise are greatly reduced.

 

Physical security is primarily a matter of
implementing effective policies and practices, and educating notebook computer
users to pay careful, intelligent attention to physical security risks.

 

THOMSON SCIENTIFIC NOTEBOOK
SECURITY POLICY

 

Thomson Scientific expects each employee using a
notebook computer:

 

·                  To protect it from theft or loss, exercising the highest standard
of care reasonable and appropriate to the circumstances in each case, taking
into account the vulnerability of notebook computers to theft or loss and the
quantity and nature of the information stored on the computer; and

·                  To exercise the highest standards of care with respect to company
information in electronic form, as is always the case with any business-related
information, whether verbal, written or electronic.

·                  Each Thomson Scientific employee using a notebook computer is
required to implement, use and maintain in force at all times a “power-on”
password protection system, approved by the Sr. Manager, Network and User
Services.

 

Thomson Scientific reserves the right to deal with violations
of this policy by taking appropriate disciplinary actions, including without
limitation, requiring the employee to reimburse the Company for the cost of the
notebook computer.

 

Name:

 

Date:

 

Model:

 

Serial Number:

 

Security Plate Number:

 

 

	
  I have read Thomson
  Scientific’s Notebook Security Policy statement and agree to abide by it as
  consideration for my continued employment by Thomson Scientific.  I understand that violation of any above
  policies may result in disciplinary action, up to and including termination.

  
	
   

  
	
   

  	
   

  	
  /

  	
   

  	
   

  
	
   

  	
  Employee Signature

  	
   

  	
  Date

  	
   

  

 

 

EXHIBIT E

 

Internet Use Policy

 

Your use of the Internet is
governed by this policy

 

I               Internet
Management

 

Certain employees may be provided with access to the
Internet to assist them in performing their jobs. The Internet can be a
valuable source of information and research. In addition, e-mail can provide
excellent means of communicating with other employees, our customers and
clients, outside vendors, and other businesses. Use of the Internet, however,
must be tempered with common sense and good judgment.

 

We believe, as a responsible employer, that it is very
important to do all we can to ensure that the Internet is used in a responsible
manner. If you abuse your right to use the Internet, this privilege will be
revoked. In addition, you may be subject to disciplinary action, including
possible termination, and you may be held liable for violation of civil or
criminal statutes. This document reviews how we expect all employees to use the
Internet in order to ensure that their 
use is consistent  with these
guidelines.

 

Effective December 1, 2001,
Thomson Scientific will deploy Websense Internet
Management Software, an Internet pass-through filtering solution
that manages, monitors and reports on employee use of the Internet. In
Phase I of the deployment, two areas will be addressed; category blocking
(permanent blocking or blocking at certain times of the day) and monitoring via
the Websense Reporter.

 

Category Blocking

 

Blocking categories, as defined
by Websense, are groups of similar Websites
that  have been determined to be
non-business related (example — adult, racism/hate, gambling,
onlinebroker/trading, etc.) and employee access will be blocked to these sites
(however, all attempts are reported and recorded via the Websense
Reporter module). Some categories will be permanently blocked, while
others will be blocked during core business hours only (see pg.4). Core
business hours (subject to change) are Monday to Friday 9:00am — 12:30pm and
1:30pm — 5:00pm.

 

II             Websense Reporter

 

Working in combination with Websense
Enterprise, Websense Reporter
reports on employee use of the Internet. We will use it to monitor all Internet
activity 7/24 to ensure that your use of the Internet meets the requirements of
our policy.

 

Disclaimer
of liability for use of the Internet

 

Thomson Scientific is not responsible for material
viewed or downloaded by users from the Internet. The Internet is a worldwide
network of computers that contains millions of pages of information. Users are
cautioned that many of these pages include offensive, sexually explicit, and
inappropriate material. In general, it is difficult to avoid at least some
contact with this material while using the Internet. Even innocuous search
requests may lead to sites with highly offensive content. Users accessing the
Internet do so at their own risk.

 

 

Employee’s
duty of care

 

Employees should endeavor to make each electronic
communication truthful and accurate. You should use the same care in drafting
e-mail and other electronic documents as you would for any other written
communication. Please keep in mind that anything created or stored on the
computer system may and likely will, be reviewed by others.

 

III            Duty not to waste computer resources

 

Employees must not deliberately perform acts that
waste computer resources or unfairly monopolize resources to the exclusion of
others. These acts include, but are not limited to, sending mass mailings or
chain letters, spending excessive amounts of time on the Internet, playing
games, engaging in online chat groups, printing multiple copies of documents,
or otherwise creating unnecessary network traffic. Because audio, video and
picture files require significant storage space, files of this sort may not be
downloaded unless they are business related.

 

IV            No expectation of privacy

 

The
computers and the computer accounts given to employees are to assist them in
performance of their jobs. Employees should not have an expectation of privacy
in anything they create, store, send or receive on the computer system. The
computer system belongs to the company and may only be used for business
purposes.

 

V             No privacy in communications

 

Employees should never consider electronic
communications to be either private or secure. E-mail may be stored
indefinitely on any number of computers, including that of the recipient.
Copies of your messages may be forwarded to others either electronically or on
paper. In addition, e-mail sent to nonexistent or incorrect usernames may be delivered
to persons that you never intended.

 

VI            Monitoring of computer usage

 

The
company has the right to monitor any and all aspects of its computer system or
any individuals use of the system, including, but not limited to, monitoring
sites visited by employees on the Internet, monitoring chat groups and
newsgroups, reviewing material downloaded or uploaded by users to the Internet,
and reviewing e-mail sent and received by users.

 

VII           Blocking of inappropriate content

 

The
company may use software/hardware to identify inappropriate or sexually
explicit Internet sites. Such sites may be blocked from access by company
networks. In the event you nonetheless encounter inappropriate or sexually
explicit material while browsing on the Internet, immediately disconnect from
the site, regardless of whether the site was subject to company blocking
software.

 

VIII         Prohibited activities

 

Material that is fraudulent, harassing, embarrassing,
sexually explicit, profane, obscene, intimidating, defamatory, or otherwise unlawful
or inappropriate may not be sent by e-mail or other forms of electronic
communication (bulletin board systems, newsgroups, egroups, chat groups),
downloaded from the Internet, or displayed on or stored in desktop or network
computers. Employees encountering or receiving this kind of material should
immediately report the incident to their supervisors.

 

 

IX            Games and entertainment software

 

Employees may not use the company’s Internet
connection to download games or other entertainment software, including screen
savers, or to play games over the Internet.

 

X             Illegal copying

 

Employees
may not illegally copy material protected under copyright law or make that
material available to others for copying. You are responsible for complying
with copyright law and applicable licenses that may apply to software, files,
graphics, documents, messages, and other material you wish to download or copy.
You may not agree to a license or download any material for which a
registration fee is charged without first obtaining the express written
permission of Sr. Manager Network & User Services.

 

Accessing
the Internet

 

To ensure security and avoid the spread of viruses,
employees accessing the Internet through a computer attached to Thomson
Scientific’s network must do so through an approved Internet firewall.
Accessing the Internet directly, by modem, is strictly prohibited unless the
computer you are using is not connected to the company’s network.

 

Virus
detection

 

Files obtained from sources outside the company, including
disks brought from home; files downloaded from the Internet, newsgroups,
bulletin boards, or other online services; files attached to e-mail; and files
provided by customers or vendors, may contain dangerous computer viruses that
may damage the company’s computer network. Employees should never download
files from the Internet, accept e-mail attachments from outsiders, or use disks
from non-company sources, without first scanning the material with
company-approved virus checking software. If you suspect that a virus has been
introduced into the company’s network, notify the Sr. Manager Network &
User Services immediately.

 

Sending
unsolicited e-mail (spamming)

 

Without
the express permission of their supervisors, employees may not send unsolicited
e-mail to persons with whom they do not have a prior relationship.

 

XI            Altering attribution information

 

Employees
must not alter the “From:” line or other attribution-of-origin information in
e-mail, messages, or postings. Anonymous or pseudonymous electronic communications
are forbidden. Employees must identify themselves honestly and accurately when
participating in chat groups, making postings to newsgroups, sending e-mail, or
otherwise communicating on-line.

 

Use of encryption software

 

Employees
may not install or use encryption software on any of Thomson Scientific’s
Computers.

 

XII          Export restrictions

 

The
federal government has imposed restrictions on export of programs or files
containing encryption technology (such as e-mail programs that permit encryption
of messages and electronic commerce software that encodes transactions).
Software containing encryption technology is not to be placed on the Internet
or transmitted in any way outside the United States without prior written
authorization from VP Technology Services.

 

 

XIII         Other policies applicable

 

In
their use of the Internet, users must observe and comply with all other
policies and guidelines of the company.

 

XIV         Amendments and revisions

 

This
policy may be amended or revised from time to time as the need arises. Users
will be provided with copies of all amendments and revisions.

 

Violations of this policy will be taken seriously and may result in
disciplinary action, including possible termination and you may be held liable
for violation of civil or criminal statutes.

 

 

Internet Management Blocking
Categories

 

	
  Category/Sub-category

  	
   

  	
  Permanently

  Blocked

  	
   

  	
  Available

  before/after

  core hours*

  
	
  Adult Material

  	
   

  	
  X

  	
   

  	
   

  
	
  Entertainment

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         MP3

  	
   

  	
  X

  	
   

  	
   

  
	
  Gambling

  	
   

  	
  X

  	
   

  	
   

  
	
  Games

  	
   

  	
  X

  	
   

  	
   

  
	
  Information Technology

  	
   

  	
   

  	
   

  	
   

  
	
  ·         Hacking

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Proxy Avoidance Systems

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         URL Translation Sites

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Web Hosting

  	
   

  	
  X

  	
   

  	
   

  
	
  Internet Communication

  	
   

  	
   

  	
   

  	
   

  
	
  ·         Web Chat

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Web Based Email

  	
   

  	
  X

  	
   

  	
   

  
	
  Job Search

  	
   

  	
  X

  	
   

  	
   

  
	
  Military/Extremist

  	
   

  	
   

  	
   

  	
  Y

  
	
  Premium Group

  	
   

  	
   

  	
   

  	
   

  
	
  ·         Advertisements

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Freeware/Software
  Download

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Instant Messenger

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Message Board &
  Clubs

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Online Broker &
  Trading

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Pay to Surf

  	
   

  	
  X

  	
   

  	
   

  
	
  Premium Group II

  	
   

  	
   

  	
   

  	
   

  
	
  ·         Internet Radio & TV

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Internet Telephony

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Peer to Peer File
  sharing

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Personal Network
  Storage/ Backup

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Streaming Media

  	
   

  	
  X

  	
   

  	
   

  
	
  Racism/Hate

  	
   

  	
  X

  	
   

  	
   

  
	
  Shopping

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Internet Auctions

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Real Estate

  	
   

  	
   

  	
   

  	
  Y

  
	
  Society and Lifestyle

  	
   

  	
   

  	
   

  	
   

  
	
  ·         Alcohol/ Tobacco

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Gay and Lesbian Issues

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Hobbies

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Personal Websites

  	
   

  	
  X

  	
   

  	
   

  
	
  ·         Personals/ Dating

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Restaurants and Dining

  	
   

  	
   

  	
   

  	
  Y

  
	
  Special Events

  	
   

  	
   

  	
   

  	
  Y

  
	
  Sports

  	
   

  	
   

  	
   

  	
  Y

  
	
  ·         Sport Hunting /Gun Clubs

  	
   

  	
   

  	
   

  	
  Y

  
	
  Travel

  	
   

  	
   

  	
   

  	
  Y

  
	
  Vehicles

  	
   

  	
   

  	
   

  	
  Y

  
	
  Violence

  	
   

  	
  X

  	
   

  	
   

  

 

*Core
business hours (subject to change) are: Monday to Friday, 9:00am – 12:30pm and
1:30pm – 5:00pm.

 

 

EXHIBIT F

 

Anti-Virus Policy and Guidelines

 

Guidelines on Anti-Virus Process

 

Recommended
processes to prevent virus problems:

 

·                  Always run Thomson’s standard, supported
anti-virus software as provided by your local help desk.

·                  NEVER open any files or macros attached to
an email from an unknown, suspicious or untrustworthy source. Delete these
attachments immediately, then “double delete” them by emptying your Trash.

·                  Delete spam, chain, and other junk email
without forwarding, in accordance with Thomson’s Acceptable
Use Policy.

·                  Never download files from unknown or
suspicious sources.

·                  Avoid direct disk sharing with read/write
access unless there is absolutely a business requirement to do so.

·                  Always scan a floppy diskette from an
unknown source for viruses before using it.

·                  Back-up critical data and system
configurations on a regular basis and store the data in a safe place.

·                  If lab testing conflicts with anti-virus
software, run the anti-virus utility to ensure a clean machine, disable the
software, then run the lab test. After the lab test, enable the anti-virus
software. When the anti-virus software is disabled, do not run any applications
that could transfer a virus, e.g., email or file sharing.

·                  New viruses are discovered almost every
day. Periodically check the Lab Anti-Virus Policy
and this Recommended Processes list for updates.

 

Lab Anti-Virus Policy

 

1.0 Purpose

 

To establish
requirements which must be met by all computers connected to Thomson’s lab
networks to ensure effective virus detection and prevention.

 

2.0 Scope

 

This policy
applies to all Thomson lab computers that are PC-based or utilize PC-file
directory sharing. This includes, but is not limited to, desktop computers,
laptop computers, file/ftp/tftp/proxy servers, and any PC based lab equipment
such as traffic generators.

 

3.0 Policy

 

All Thomson
PC-based lab computers must have Thomson’s standard, supported anti-virus
software installed and scheduled to run at regular intervals. In addition, the
anti-virus software and the virus pattern files must be kept up-to-date.
Virus-infected computers must be removed from the network until they are
verified as virus-free. Lab Admins/Lab Managers are responsible for creating
procedures that ensure anti-virus software is run at regular intervals, and
computers are verified as virus-free. Any activities with the intention to
create and/or distribute malicious programs into Thomson’s networks (e.g.,
viruses, worms, Trojan horses, e-mail bombs, etc.) are prohibited, in
accordance with the Acceptable Use Policy.

 

Refer to Thomson’s
Anti-Virus Recommended Processes to help
prevent virus problems.

 

Noted exceptions:
Machines with operating systems other than those based on Microsoft products
are excepted at the current time.

 

4.0 Enforcement

 

Any employee found
to have violated this policy may be subject to disciplinary action, up to and
including termination of employment.

 

5.0 Revision History

 

 

EXHIBIT G

 

Password Policy

 

1.0 Overview

 

Passwords are an
important aspect of computer security. They are the front line of protection
for user accounts. A poorly chosen password may result in the compromise of
Thomson’s entire corporate network. As such, all Thomson employees (including
contractors and vendors with access to Thomson’s systems) are responsible for
taking the appropriate steps, as outlined below, to select and secure their
passwords.

 

2.0 Purpose

 

The purpose of
this policy is to establish a standard for creation of strong passwords, the
protection of those passwords, and the frequency of change.

 

3.0 Scope

 

The scope of this
policy includes all personnel who have or are responsible for an account (or
any form of access that supports or requires a password) on any system that
resides at any Thomson facility, has access to the Thomson network, or stores
any non-public Thomson information.

 

4.0 Policy

 

4.1 General

 

·                  All passwords (e.g., root, enable, NT
admin, application administration accounts, etc.) must be changed on at
least a quarterly basis.

·                  User accounts that have system-level privileges
granted through group memberships or programs such as “sudo” must have a unique
password from all other accounts held by that user.

·                  Passwords must not be inserted into email
messages or other forms of electronic communication.

·                  Where SNMP is used, the community strings
must be defined as something other than the standard defaults of “public,” “private”
and “system” and must be different from the passwords used to log in
interactively. A keyed hash must be used where available (e.g., SNMPv2).

·                  All user-level and system-level passwords
must conform to the guidelines described below.

 

4.2 Guidelines

 

A. General Password
Construction Guidelines

 

Passwords are used
for various purposes at Thomson. Some of the more common uses include: user
level accounts, web accounts, email accounts, screen saver protection,
voicemail password, and local router logins. Since very few systems have
support for one-time tokens (i.e., dynamic passwords which are only used once),
everyone should be aware of how to select strong passwords.

 

Poor, weak
passwords have the following characteristics:

 

·                  The password contains less than eight
characters

·                  The password is a word found in a
dictionary (English or foreign)

·                  The password is a common usage word such
as:

·                  Names of family, pets, friends,
co-workers, fantasy characters, etc.

·                  Computer terms and names, commands, sites,
companies, hardware, software.

·                  The words “Thomson Corporation”, “sanjose”,
“sanfran” or any derivation.

·                  Birthdays and other personal information
such as addresses and phone numbers.

·                  Word or number patterns like aaabbb,
qwerty, zyxwvuts, 123321, etc.

·                  Any of the above spelled backwards.

·                  Any of the above preceded or followed by a
digit (e.g., secret1, 1secret)

 

Strong passwords
have the following characteristics:

 

Contain both upper and lower case characters (e.g.,
a-z, A-Z)

Have digits and punctuation characters as well as
letters e.g., 0-9, !@#$%^&*()_+|~-=\`{}[]:”;’<>?,./)

Are at least eight alphanumeric characters long.

Are not words in any language, slang, dialect, jargon, etc.

 

 

Are not based on personal information, names of family, etc.

Passwords should never be written down or stored
on-line. Try to create passwords that can be easily remembered. One way to do
this is create a password based on a song title, affirmation, or other phrase.
For example, the phrase might be: “This May Be One Way To Remember” and
the password could be: “TmB1w2R!” or “Tmb1W>r~” or some other variation.

 

NOTE: Do not use
either of these examples as passwords!

 

B. Password Protection
Standards

 

Do not use the
same password for Thomson accounts as for other non-Thomson access (e.g.,
personal ISP account, option trading, benefits, etc.). Where possible, don’t
use the same password for various Thomson access needs. For example, select one
password for the Financial systems and a separate password for IT systems.
Also, select a separate password to be used for a Windows account and a UNIX
account.

 

Do not share
Thomson passwords with anyone, including administrative assistants or
secretaries. All passwords are to be treated as sensitive, confidential Thomson
information.

 

Here is a list of “don’ts”:

 

·                  Don’t reveal a password over the phone to
ANYONE

·                  Don’t reveal a password in an email
message

·                  Don’t reveal a password to the boss

·                  Don’t talk about a password in front of
others

·                  Don’t hint at the format of a password
(e.g., “my family name”)

·                  Don’t reveal a password on questionnaires
or security forms

·                  Don’t share a password with family members

·                  Don’t reveal a password to co-workers
while on vacation

 

If someone demands
a password, refer them to this document or have them call someone in the Information
Security Department.

 

Do not use the “Remember
Password” feature of applications  (e.g.,
Eudora, OutLook, Netscape Messenger).

 

Again, do not
write passwords down and store them anywhere in your office. Do not store
passwords in a file on ANY computer system (including Palm Pilots or similar
devices) without encryption.

 

Change passwords
at least once every quarter.

 

If an account or
password is suspected to have been compromised, report the incident to InfoSec
and change all passwords.

 

Password cracking
or guessing may be performed on a periodic or random basis by InfoSec or its
delegates. If a password is guessed or cracked during one of these scans, the
user will be required to change it.

 

C. Application Development
Standards

 

Application
developers must ensure their programs contain the following security
precautions. Applications:

 

·                  should support authentication of
individual users, not groups.

·                  should not store passwords in clear text
or in any easily reversible form.

·                  should provide for some sort of role
management, such that one user can take over the functions of another without
having to know the other’s password.

·                  should support TACACS+ , RADIUS and/or
X.509 with LDAP security retrieval, wherever possible.

 

D. Use of Passwords and
Pass phrases for Remote Access Users

 

Access to the
Thomson Networks via remote access is to be controlled using either a one-time
/ two factor password authentication or a public/private key system with a
strong pass phrase.

 

 

E. Pass phrases

 

Pass phrases are
generally used for public/private key authentication. A public/private key
system defines a mathematical relationship between the public key that is known
by all, and the private key, that is known only to the user. Without the pass
phrase to “unlock” the private key, the user cannot gain access.

 

Pass phrases are
not the same as passwords. A pass phrase is a longer version of a password and
is, therefore, more secure. A pass phrase is typically composed of multiple
words. Because of this, a pass phrase is more secure against “dictionary
attacks.”

 

A good pass phrase
is relatively long and contains a combination of upper and lowercase letters
and numeric and punctuation characters. An example of a good pass phrase:

 

“The*?#>*@TrafficOnThe101Was*&#!#ThisMorning”

 

All of the rules above
that apply to passwords apply to pass phrases.

 

5.0 Enforcement

 

Any employee found
to have violated this policy may be subject to disciplinary action, up to and
including termination of employment.

 

6.0 Definitions

 

	
  Terms

  	
   

  	
  Definitions

  
	
  Application
  Administration Account

  	
   

  	
  Any account that
  is for the administration of an application (e.g., Oracle database
  administrator, ISSU administrator).

  

 

7.0 Revision History

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE
BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

First Amendment to the Master
Services Agreement

 

The First Amendment (“First Amendment”) made as of
January 23, 2007 amends the Master Services Agreement (“Agreement”) dated
September 9, 2004 by and between Thomson Healthcare Inc. and Virtusa
Corporation (“SP”).  Any capitalized term
not defined herein shall have the meaning given it in the Agreement.

 

The parties agree to amend the Agreement as follows:

 

For the time frame March 1, 2006 to December 31, 2006
(“2006 Timeframe”), and January 1 2007 to December 2007 (“2007 Timeframe”) fees
for the Services and Work Product described in Statements of Works during that
timeframe will be based on the hourly rates (rate / hour) established
below.  The rates are customized based on
project type as shown below.

 

	
  Development and Consulting Project
  Roles

  	
   

  	
  Offshore

  Rate

  (Hourly)

  	
   

  	
  Onsite

  Rate

  (Hourly)

  	
   

  
	
  Development Engineer

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Sr. Development Engineer,
  Technical Lead, BA, PM, DBA

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Architect, Sr. BA

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Principal Architect,
  Program Manager

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

	
  Maintenance and QA Project Roles

  	
   

  	
  Offshore

  Rate

  (Hourly)

  	
   

  	
  Onsite

  Rate

  (Hourly)

  	
   

  
	
  QA Engineer or Associate
  QA Engineer; Maintenance Engineer or Associate Maintenance Engineer

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Sr. Maintenance Engineer
  or Sr. QA Engineer, Maintenance Technical Lead or QA Lead, PM

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

SP agrees to offer [***] on all Thomson projects
(executed specifically for Thomson Scientific or Thomson Healthcare units)
during the January 1, 2006 to December 31, 2006.  [***] is given at the rate of [***] on every
[***] invoiced with respect to fees billed from January 1, 2006 to December 31,
2006.  For the avoidance of doubt, the
[***] does not apply to any prior or future period.

 

The [***] for the period of January 1, 2006 to
December 31, 2006 Timeframe will be paid via check in February 2007 to:

 

The Thomson Corporation

 

Mail to:

 

Richard Hoponick

VP & Controller

Thomson Scientific & Thomson Healthcare

 

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE
BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

200 First Stamford Place, Suite 400

Stamford, CT  06902

 

Contracts will be based on daily rates [***.]  These rates can be applied for T&M,
Retainer or Fixed price contracts.

 

All other terms and conditions of the Agreement shall
remain in full force and effect.

 

IN WITNESS WHEREOF, each of the parties hereto has
caused the First Amendment to be executed by a duly authorized representative.

 

	
  Thomson Healthcare Inc.

  	
   

  	
  Virtusa Corporation

  
	
   

  	
   

  	
   

  
	
  /s/ Frank Licata

  	
   

  	
  /s/ Thomas Holler

  
	
   

  	
   

  	
   

  
	
  SVP CTO

  	
   

  	
  CFO

  
	
   

  	
   

  	
   

  
	
  Thomson Healthcare

  	
   

  	
  Virtusa Corporation

  

 

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

SECOND  AMENDMENT TO
THE

MASTER SERVICES AGREEMENT

 

This Second Amendment (“Amendment”)
dated May 29, 2008 (“Amendment Effective Date”) shall be attached to and
be part of the Master Services Agreement dated September 9, 2004 (“Agreement”)
between Thomson Healthcare Inc., a Delaware corporation (“Thomson”) and Virtusa
Corporation (“SP”).  Any capitalized term
not defined herein shall have the meaning given it in the Agreement.  As of December 31, 2007, the Agreement
was assigned by the Florida corporation formerly known as Thomson Healthcare
Inc. to its affiliate, which was then renamed as Thomson Healthcare Inc., a
Delaware corporation.

 

WHEREAS, the parties desire
to amend the Agreement to address confidentiality, HIPAA, security, compliance
requirements, non competition and other provisions as set forth below.

 

NOW, THEREFORE, the parties
agree as follows.

 

1.     Section 2 Provision of
Services and Work Product is amended to delete and replace Section 2.12
with the following.

 

2.12  SP shall not use any Thomson resource for
performing services for any party other than Thomson and agrees that any and
all Restricted Personnel (as defined below) providing Services or delivering
Work Product as provided herein on behalf of Thomson pursuant to a particular
Statement of Work (“SOW”) will not be assigned or involved in any projects
directly or indirectly performed for the benefit of any Thomson competitor(s) identified
in such SOW(a “Named Competitor”) during the term of such Restricted Personnel’s
performance of services under the SOW and for a period of 6 months
thereafter.  Identification of Named
Competitors shall be those companies competitive to the Thomson entity engaging
SP under the SOW and will not exceed at any time 10 companies per such Thomson
entity and may be updated in writing by Thomson, in its reasonable discretion,
from time to time but no more than once every 6 months.  Such update shall be effective upon delivery
to the SP Relationship Manager as such term is defined in Section 3.1
hereof.  “Restricted Personnel” shall
mean a Virtusa resource engaged under the applicable SOW with titles,
responsibilities or functions of project manager, architect, design engineer,
technical lead, developer, senior engineers or engineer.

 

For purposes of this
Agreement, “Thomson Business” means Thomson and Affiliated Entities issuing
Statements of Work under this Agreement that are in the business of providing
decision support information, applications, tools and integrated solutions to  business and professional customers.

 

Unless
otherwise agreed in writing by Thomson from time to time, [***], and will
ensure that its subsidiaries or affiliates, if any, will not, [***] (i) any
[***] that [***] with the [***]; or (ii) any [***] that is connected to a
[***] on which [***] under an engagement with Thomson, in each case during the
[***] of this Agreement and for a [***] of [***] thereafter.

 

2.     Section 2 Provision of
Services and Work Product is amended to add as a new section 2.14 as
follows:

 

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

2.14  Unless prohibited by applicable law, each
person to be assigned by SP to a Thomson Services project must have been
screened for illegal (according to applicable law) drug use. Screens conducted
in the U.S.A. must, at a minimum include (i) for drugs: marijuana,
amphetamine, methamphetamine, cocaine, opiates, and phencyclidine (PCP); and (ii) for
adulterants: nitrite.

 

Unless
prohibited by applicable law, SP must conduct a background check of each SP
staff member prior to starting work on a Thomson Services project.  The background check must, at a minimum
include:

 

(i) confirmation of
prior work experience and reference check with the individual’s most recent
employer;

(ii) criminal
background check in each county where the individual resided, going back a
period of seven years and inclusive of felonies and misdemeanors, (including
crimes involving violence, fraud, theft, dishonesty or breach of trust), and
conducted at the highest county level court in that county, subject to
limitations and customary practices of the background check process in the
countries in which the individual resides, particularly non-US residents;

(iii) if applicable,
confirmation of eligibility of the individual to work in the U.S.A (includes
checking lists maintained by the U.S.A. government of persons or entities with
whom any U.S.A. person or entity is prohibited from conducting business) and
confirmation that SP has no knowledge that any illegal immigrant will be used
to perform the Services; and

(iv) if the Services
require the individual to operate a motor vehicle, a Department of Motor Vehicle
check in each state that the individual resided in for the past seven years.

For
non-U.S. based SP staff, the parties will agree upon similar background checks
as may be available in the country where the staff is based.

 

SP
shall cause each screen or check of the SP staff member performing Services for
Thomson to have been completed no earlier than 90 days prior to the start
date.  If a SP staff member is returning
to an assignment at Thomson, there can be no more than a 90-day period from the
end of the previous assignment to the beginning of the new assignment without
performing a new drug or criminal background check.  SP shall not assign and shall immediately
remove if they were assigned, staff members who have failed the background
check or produced a “positive” drug screen result.  For staff members already assigned to Thomson
projects, SP shall immediately notify in writing the Thomson Relationship
Manager of those staff members who have failed the background check or produced
a “positive” drug screen result.  In
addition to the foregoing, SP will provide a written pass/fail status of all
checks and screens at the request of Thomson.

 

3.     Section 2 Provision of
Services and Work Product is amended to add as a new section 2.15 as
follows:

 

2.15  SP acknowledges that it is not presently
excluded or debarred from participating in any Federal health care program,
including Medicare, Medicaid, CHAMPUS, maternal and child health block grants,
and social service block grants. 
Further, SP represents that it has not received from the Office of
Inspector General any notice of intent to exclude, notice of exclusion or
notice of proposal to exclude.  SP agrees
to provide immediate written notice to Thomson in the event the party is
excluded or debarred from any Federal health care program or receives any
notice of intent to exclude, notice of exclusion, or notice of proposal to
exclude prior to the

 

2

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

delivery of all goods or
services to be provided hereunder.  SP
agrees that it shall not employ or subcontract for provision of any of the
goods or services to be provided hereunder with any individual or entity which
is excluded or debarred from participation in any Federal health care program.

 

4.     Section 6 Confidentiality
is amended to delete and replace Section 6.1 with the following:

 

6.1  Exhibit H
contains terms and conditions under the Health Insurance Portability and
Accountability Act of 1996 (“HIPAA”), 45 C.F.R. §§ 160-164 that apply to SP’s
use, disclosure, exchange, creation and storage of Protected Health Information
(as defined in 45 C.F.R. § 164.501) (“PHI”) on behalf of Thomson or its
customers.  SP agrees to comply with the
provisions of Exhibit H, as well as any other applicable laws regarding
the privacy and confidentiality of PHI and other Confidential Information
received from Thomson.  If and to the
extent that any other non-Protected Health Information Confidential Information
is exchanged between the parties, the following terms of Section 6 shall
apply with respect to such Confidential Information.

 

With regard to SP
Confidential Information disclosed under this Agreement and any Statement of
Work, Thomson shall be deemed to be the “Receiving Party” and SP shall be
deemed to be the “Disclosing Party”. 
With regard to Thomson Confidential Information disclosed under this
Agreement or any Statement of Work, SP shall be deemed to be the “Receiving
Party” and Thomson shall be deemed to be the “Disclosing Party.”  “Confidential Information” shall be deemed to
be SP Confidential Information when Thomson is the Receiving Party, or Thomson
Confidential Information when SP is the Receiving Party.  The Receiving Party shall hold all
Confidential Information of the Disclosing Party at all times in trust and
confidence, shall take all appropriate action to ensure the confidentiality and
security of the Disclosing Party’s Confidential Information, and shall treat
the Disclosing Party’s Confidential Information with the same degree of care
that it uses to protect its own most confidential information of like kind and
value, but in no case less than a reasonable degree of care.  Without Disclosing Party’s express written
authorization, Receiving Party shall not use Confidential Information for its
own benefit or for the benefit of any party other than Disclosing Party, and
shall not duplicate or disclose the Confidential Information in any manner to
any other party other than such of its Personnel or employees who have a need
to know such information solely in connection with the express purposes of this
Agreement.  In no event shall SP use
Thomson Confidential Information to Thomson’s detriment.  Receiving Party shall not, and shall not
assist others to, disassemble, decompile, reverse engineer or otherwise attempt
to recreate Confidential Information. 
Notwithstanding the foregoing, from time to time, Disclosing Party may
require that any Confidential Information held by Receiving Party be returned
to Disclosing Party, or destroyed or erased by Receiving Party, at Disclosing
Party’s option.

 

5.     Section 6 Confidentiality
is amended to delete and replace Section 6.6 with the following:

 

6.6  The obligation to treat information as “Confidential
Information” shall not apply to: (i) information received independently
from a third party by the Receiving Party, which third party is not under a
confidentiality obligation to Disclosing Party with regard to such information;
(ii) information in the possession of the Receiving Party prior to the
Effective Date other than by reason of the Services to be performed or received
pursuant to this Agreement; (iii) information that is or becomes generally
available through no wrongful act of either party or (iv) information that
is independently developed by or for the Receiving Party without benefit of the
Disclosing Party’s Confidential Information; provided that, for each of the
foregoing exceptions, the

 

3

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

Receiving Party provides the
Disclosing Party with written documentation evidencing the same upon request of
the Disclosing Party.  Notwithstanding
any provision in this Agreement to the contrary, any individually identifiable
health information shall be considered Confidential Information.

 

6.     Section 10 Insurance
Coverage; Limitation of Liability is amended to delete and replace Section 10.5
with the following:

 

10.5  NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
THIS AGREEMENT, THE ABOVE LIMITS SET FORTH IN SECTION 10.2 AND SECTION 10.3
SHALL NOT APPLY TO LIABILITY ARISING FROM SP’S BREACH OF SECTION 2.12,
4.2, 4.4, 4.7, 6, 7 OR 13 OF THIS AGREEMENT AND LIABILITY ARISING FROM SP’S
OBLIGATIONS UNDER SECTION 8 OF THIS AGREEMENT.  THE ABOVE LIMITS SET FORTH IN SECTION 10.2
AND SECTION 10.4 SHALL NOT APPLY TO LIABILITY ARISING FROM THOMSON’S
BREACH OF SECTION 6 OR 7.4 OF THIS AGREEMENT AND LIABILITY ARISING FROM
THOMSON’S OBLIGATIONS UNDER SECTION 8.6. 
BOTH PARTIES AGREE THAT THOMSON’S 
REASONABLE COSTS OF COVER UPON A TERMINATION FOR UNCURED MATERIAL BREACH
SHALL BE DEEMED TO BE DIRECT DAMAGES FOR PURPOSES OF THIS AGREEMENT.

 

7.               Section 11 Term and Termination is amended to delete
and replace Section 11.1 with the following:

 

11.1  The Term of this Agreement begins on the
Effective Date and shall continue through September 9, 2009 (the “Initial
Term”).  After the Initial Term, Thomson
may renew this Agreement for three consecutive one-year terms (“Renewal Term),
each such renewal only upon the prior written consent of SP.  Thomson may elect not to renew this Agreement
by providing SP with notice of such non-renewal at least thirty (30) days prior
to the commencement of any Renewal Term. 
Notwithstanding the foregoing, the Agreement continues to govern any SOW
outstanding at the time of termination as if it had not been terminated.

 

8.     Section 11 Term and
Termination is amended to delete and replace Section 11.10 with
the following:

 

11.10 Upon termination of
all SOWs that are outstanding with respect to a Thomson Line of Business or
“LOB” (as defined below) in connection with a complete termination of the
relationship and all engagements between SP and such LOB, a (“LOB
Termination Event”), for any reason, and at such LOB’s request pursuant to
written notice to SP by such LOB of any such LOB Termination Event as set forth
in the Agreement (“LOB Termination Notice”), SP shall cooperate to
transition the applicable Services to such LOB or to a third-party chosen by
the LOB, for a period not to exceed one hundred eighty days. Upon a LOB
Termination Event and receipt by SP of a LOB Termination Notice, to facilitate
such transition, [************************************************************************************************] United States
or outside the United States, [********************************************  ]; subject to the following
terms and conditions.

 

4

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

(a)        Within
5 business days after receipt from an LOB of an LOB Termination Notice, [********************************************************************************************.] For purposes
herein, each Line of Business or LOB shall be limited to each of Thomson
Healthcare, Thomson Scientific and equivalent legal entities (including any
successors and assigns) and does not include any other Affiliates of Thomson.
Each entity listed above shall be considered a separate LOB for all purposes
hereunder.

 

(b)        Following
delivery of a LOB Termination Notice, the LOB who is a party to each SOW being
terminated under the LOB Termination Notice, [********************************************************************************************], whether in
the United States or outside the United States, other than such [***.]

 

(c)        Thomson
agrees to
[**************************************************************************.]

 

(d)        [******************************************************************************************] on
(i) the terminating LOB being current on all payments of all outstanding
fees and expenses due under all outstanding applicable SOWs which are being
terminated as of the LOB Termination Notice and (ii) the terminating LOB
not being in material breach of the Agreement or the applicable SOWs (subject
to any applicable right to cure) at the time of the LOB Termination Notice or
[***.]

 

For the avoidance of doubt,
neither Thomson nor any Affiliated Entity shall have any [*********************************************************************************************.] Such LOB
shall have [***] of those [***] under the [***] up until the expiration of the
[***] and such [*************************************************************************************  *******.] Further, the LOB
operating under the LOB Termination Notice is not under any obligation
[****************************.] With respect to any [***], and provided that
the terminating LOB is in material compliance with the terms of the Agreement
and the LOB’s outstanding SOWs (subject to any applicable right to cure),
including the terms of this Section 11.10, as of the date of the LOB
Termination Notice, SP agrees to [*************************************************************************************************] to the extent
that such [***********************************************************************

 

5

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

******************************************************************.]
Further, SP hereby covenants that it shall not directly or indirectly make [*********************************************************************
*********************.] In addition, the parties will amend the
applicable SOWs, specifying all details necessary to assure an orderly
transition. During the transition period, Thomson
[***********************************], giving effect to any increases in rates
that may be set forth in such SOWs.

 

9.     Section 13 Data
Protection and Security is amended to delete and replace in its
entirety with the following:

 

13.1  SP
shall maintain a security plan (“Security Plan”) that meets the minimum
standards defined in Exhibit I, “Thomson Information Security Requirements”
(as updated by Thomson from time to time). 
In addition, such Security Plan will, at all times, comply with such
reasonable minimum security standards required by applicable law.  The Security Plan shall include without
limitation SP’s Outsourcing Centers. 
Upon approval by Thomson, the Security Plan is incorporated into the
Agreement.  SP shall, at least once
annually, (i) update the Security Plan; and (ii) engage a third-party
auditor to audit the Security Plan as it directly relates to, or covers Thomson
(if covered in a general audit).  SP
shall promptly provide the results of each audit to Thomson that relates to
Thomson, its plans for remediation (if necessary), and the results of any such
remediation.  SP shall make all requests
for access to Thomson facilities or systems to the Thomson Relationship
Manager.

 

SP shall be responsible for
any and all security breaches of those systems that it manages, maintains, or
uses in respect of the Services. SP shall use commercially reasonable efforts
in managing its Security Plan and related policies.  SP shall, as may be specified in a SOW,
operate and maintain such audit and tracking software as Thomson may request
from time to time.

 

13.2  SP shall maintain a business continuation
plan (“Business Continuation Plan” or “BCP”) that meets the minimum standards
specified in Exhibit J, “Business Continuation Plan Requirements of
Suppliers” (as updated by Thomson from time to time).   Upon approval by Thomson, the BCP is
incorporated into the Agreement.  The BCP
shall include without limitation SP’s Outsourcing Centers.  SP’s BCP shall ensure that SP can cause
reasonable resumption of providing Services to Thomson within acceptable
industry standards (but not later than 48 hours from the time of interruption)
and with no loss of Thomson data.  SP
shall test the operation and effectiveness of its BCP no less frequently than
indicated in the Exhibit J and SP shall promptly provide the results of
such tests to Thomson, its plans for remediation (if necessary), and the
results of such remediation.  SP will use
commercially reasonable efforts to make the necessary improvements to its BCP
based on the results of its testing and SP’s reasonable judgment.

 

10.   Section 19 Miscellaneous
is amended to delete and replace section 19.9 with the following:

 

19.9  [**********************************************],
the parties agree that neither SP nor the Thomson entity or division for which
any SP resources have performed services under a SOW shall directly or
indirectly hire, or engage as a consultant/employee, (i) with respect to
SP, any Thomson resource who performed services under such SOW, and (ii) with
respect to Thomson, any SP Restricted Personnel as defined in Section 2.12,
in each case, during the term of such SOW and for a period of [***] months
thereafter.  Nothing contained herein
shall prevent

 

6

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

either party or any of their
affiliates or Affiliated Entities from hiring any such employee who responds to
a general hiring program that is conducted in the ordinary course of business
and is not specifically directed to or attempting to solicit such employees.

 

11.   Section 19 Miscellaneous
is amended to add as a new section 19.10 as follows:

 

19.10  Pursuant to the Federal Acquisition
Regulation (FAR) 44.402 (Oct 1995) (which governs contracting for commercial
items), the FAR provisions listed below apply to a Services order at the dollar
thresholds indicated, if the Services order is identified as a subcontract
under a U.S. Government Prime Contract.

 

All
Services orders:

52.222-26 Equal Opportunity

 

Services
orders over $10,000:

52.222-35 Affirmative Action
for Disabled Veterans and Veterans of the Vietnam Era

52.222-36 Affirmative Action
for Workers with Disabilities

 

Services
orders over $500,000

52.219-8 Utilization of
Small Business Concerns

52.219-9 Small Business
Subcontracting Plan

 

Unless exempted, Section 202,
paragraphs 1-7 of Executive Order 11246 as amended, and the affirmative action
clauses as set forth in 41 C.F.R. 60-741.4 (for contracts over $2,500), 41
C.F.R. 60-250.4 (for contracts over $10,000) and 41 C.F.R. 61-250.10 (requiring
the annual reporting of Vietnam era and special disabled veterans) are
incorporated herein by reference.

 

12.   Section 19 Miscellaneous
is amended to add as a new section 19.11 as follows:

 

19.11  SP agrees to provide access to its training
programs and training facilities in India for use by Thomson  SP agrees to allow Thomson use of its
facilities for work as set forth under a SOW and if applicable, SP agrees that
SP’s Personnel may work at Thomson facilities in India as further set forth in
the applicable Statement of Work. Notwithstanding anything to the contrary, the
number of Thomson resources that shall have access and use of SP facilities,
whether for training or work, shall not exceed 15 Thomson resources, in the aggregate,
at any point in time, unless expressly agreed to in writing by SP.

 

13.   The following Exhibits
attached to the Amendment are hereby incorporated into and made a part of the
Agreement:

 

Exhibit H - HIPAA Terms
and Conditions

Exhibit J - Business
Continuation Plan

 

14.   Exhibit I -
Thomson Information Security Requirements, attached to the Amendment, is hereby
incorporated into the Agreement and replaces in their entirety Exhibits D, E,
F, and G.

 

7

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

This Amendment shall not constitute
a waiver, amendment or modification of any other provision of the Agreement not
expressly referred to herein.  Except as
expressly amended herein, the provisions of the Agreement are and shall
remaining full force and effect in accordance with their terms.  This Amendment shall in all respect be
integrated and construed in accordance with and governed by the laws of the
State of New York without regard to its principles governing conflicts of law,
regardless of the place of its, execution or performance.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be effective of the Amendment
Effective date.

 

	
  THOMSON HEALTHCARE INC.

  	
   

  	
  VIRTUSA CORPORATION

  
	
   

  	
   

  	
   

  
	
  By: /s/ Frank Licata

  	
   

  	
  By: /s/ Dan Smith

  
	
  Name: Frank Licata

  	
   

  	
  Name: Dan Smith

  
	
  Title: SVP CTO

  	
   

  	
  Title: COO

  

 

8

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND
HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHIBIT H

to the

MASTER SERVICES AGREEMENT

Dated September 9, 2004, as
amended

Between Virtusa and Thomson

 

HIPAA TERMS AND CONDITIONS

 

Thomson
may be considered a “business associate” of Thomson customers under the Privacy
and Security Rules and regulations promulgated under HIPAA.  Pursuant to separate agreements, on behalf of
Thomson customers, Thomson performs or assists in the performance of functions
and activities involving the use and disclosure of Individually Identifiable
Health Information (as defined in 45 C.F.R. § 164.501).  Thomson’s provision of these services may
involve the disclosure of Individually Identifiable Health Information by a
Thomson customer (or another business associate of a Thomson customer) to
Thomson.  This Agreement is intended to
meet the requirements of HIPAA’s Privacy and Security Rules, and will govern
the terms and conditions under which SP, as Thomson’s contractor, may create,
use or receive PHI on behalf of Thomson and Thomson customers.

 

A.                                   Definitions:

 

Unless
otherwise described in this Agreement, all terms used herein shall have the
same meaning as in the Privacy Rule and the Security Rule under HIPAA
as applicable and the corresponding implementing regulations, as amended from
time to time.  Also, as used herein, “Secretary”
means the Secretary of the Department of Health and Human Services.

 

B.                                     Obligations and Activities of SP:

 

1.               SP
agrees not to use or disclose PHI other than as permitted or required by this Exhibit or
as required by law.

 

2.               SP
at all times, agrees to maintain and use appropriate safeguards to prevent use
or disclosure of the PHI other than as provided for by this Agreement.  Furthermore, SP agrees to implement and use
appropriate administrative, physical and technical safeguards that reasonably
and appropriately protect the confidentiality, integrity and availability of
the electronic protected health information (“EPHI”), as defined in 45 C.F.R
160.103, it creates, receives, maintains or transmits on behalf of the Thomson
to prevent use or disclosure of such EPHI.

 

3.               SP
agrees to mitigate, to the extent practicable, any harmful effect that is known
to SP of a use or disclosure of PHI by SP in violation of the requirements of
this Exhibit.

 

4.               SP
agrees to report to Thomson any use or disclosure of the PHI not provided for
by this Agreement of which it becomes aware. 
Furthermore, SP agrees to report to Thomson any security incident
involving EPHI of which it becomes aware.

 

5.               SP
agrees to ensure that any agent, including a lower-tier subcontractor, to whom
it provides PHI received from, or created or received by SP on behalf of
Thomson, agrees to the same restrictions and conditions that apply through this
Exhibit to SP

 

9

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND
HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

with
respect to such information. 
Furthermore, SP agrees to ensure that its agents, including a lower-tier
subcontractor, implement reasonable and appropriate safeguards for the PHI
received from or on behalf of the SP.

 

6.               SP
agrees to provide access, at the request of Thomson, to PHI received by the SP
in the course of performance, to Thomson or, as directed by Thomson, to an
individual in order to meet the requirements under 45 CFR 164.524.

 

7.               SP
agrees to make any amendments to PHI in a designated record set that the
Thomson directs or agrees to make pursuant to 45 CFR 164.526 at the request of
Thomson or an individual.

 

8.               SP
agrees to make internal practices, books, and records, including policies and
procedures and PHI, relating to the use and disclosure of PHI received from, or
created or received by SP on behalf of the Thomson, available to the Thomson,
or to the Secretary for purposes of the Secretary determining a Thomson
customer’s compliance with the Privacy Rule.

 

9.               SP
agrees to document such disclosures of PHI and information related to such
disclosures as would be required for a Thomson customer to respond to a request
by an individual for an accounting of disclosures of PHI in accordance with 45
CFR 164.528.

 

10.         SP
agrees to provide to Thomson or an individual information collected under this
Agreement, to permit a Thomson customer to respond to a request by an
individual for an accounting of disclosures of PHI in accordance with 45 CFR
164.528.

 

C.                                     Permitted Uses and Disclosures by SP

 

Except
as otherwise limited in this Agreement, SP may

(a)           Use
the PHI in its possession for its proper management and administration and to
fulfill any legal responsibilities of SP;

(b)           Disclose the PHI in its possession to
a third party for the purpose of SP’s proper management and administration or
to fulfill any legal responsibilities of SP, provided that the disclosures are
required by law or SP has received from the third party reasonable assurances
that (i) the information will be held confidentially and used or further
disclosed only as required by law or for the purpose for which it was disclosed
to the third party; and (ii) the third party will notify SP of any
instances of which it becomes aware in which the confidentiality of the
information has been breached

 

D.                                    Obligations of Thomson

 

1.               Thomson
shall notify SP of any limitations in the notice of privacy practices of any
Thomson customers in accordance with 45 CFR 164.520, to the extent that such
limitation may affect SP’s use or disclosure of PHI.

 

2.               Thomson
shall notify SP of any changes in, or revocation of, permission by individual
to use or disclosure PHI, to the extent that such changes may affect SP’s use
or disclosure of PHI.

 

3.               Thomson
shall notify SP of any restriction to the use or disclosure of PHI that a
Thomson customer has agreed to in accordance with 45 CFR 164.522, to the extent
that such restriction may affect SP’s use or disclosure of PHI.

 

10

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND
HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

E.                                      Permissible Requests by Thomson

 

Thomson
shall not request SP to use or disclose PHI in any manner that would not be permissible
under the Privacy Rule if done by a Thomson customer.

 

F.                                      Term of Exhibit.

 

1.               The
term of SP’s obligations as provided in this Exhibit shall be effective as
of the effective date of the Agreement and shall terminate when all of the PHI
provided by Thomson to SP, or created or received by SP on behalf of Thomson,
is destroyed or returned to Thomson, or, if it is infeasible to return or
destroy PHI, protections are extended to such information, in accordance with
the termination provisions in this Exhibit.

 

2.               Upon
Thomson’s knowledge of a material breach by SP, Thomson shall either:

 

a.               Provide
an opportunity for SP to cure the breach or end the violation.  Consistent with the termination provisions of
this Agreement, Thomson may terminate this Agreement if the SP does not cure
the breach or end the violation within the time specified by Thomson;

 

b.              Consistent
with the termination provisions of this Agreement, terminate this Agreement if
SP has breached a material term of this Exhibit and cure is not possible;
or

 

c.               If
neither termination nor cure is feasible, Thomson shall report the violation to
any affected Thomson customers.

 

3.               Effect
of Termination.

 

a.               Except
as provided in paragraph (b) of this section, upon termination of this
Agreement for any reason, SP shall return or destroy all PHI received from
Thomson, or created or received by SP on behalf of Thomson.  This provision shall apply to PHI that is in
the possession of lower-tier subcontractors or agents of SP. SP shall retain no
copies of the PHI.

 

b.              In
the event that SP determines that the returning or destroying the PHI is
infeasible, SP shall provide to Thomson notification of the conditions that
make return or destruction infeasible. 
Upon such notice that return or destruction of PHI is infeasible, SP
shall extend the protections of this Exhibit to such PHI and limit further
uses and disclosures of such PHI to those purposes that make the return or
destruction infeasible, for so long as SP maintains such PHI.

 

G.                                     Miscellaneous.

 

1.               A
reference in this Exhibit to a section in the Privacy Rule means the
section as in effect or as amended.

 

2.               The
Parties agree to take such action as is necessary to amend this Exhibit from
time to time as is necessary for Thomson customers to comply with the
requirements of the Privacy and Security Rules and the Health Insurance
Portability and Accountability Act of 1996, PL 104-191.

 

3.               The
respective rights and obligations of SP under this Exhibit shall survive
the termination of the Agreement.

 

11

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND
HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

4.               Any
ambiguity in this Exhibit shall be resolved to permit Thomson and Thomson’s
customers to comply with the Privacy and Security Rules.

 

12

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND
HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHIBIT I

to the

MASTER SERVICES AGREEMENT

Dated September 9, 2004, as amended

 

Between Virtusa and Thomson

 

THOMSON INFORMATION SECURITY REQUIREMENTS

 

These security requirements pertain to organizations
outside of Thomson which will be providing information services to, or on
behalf of, Thomson.

 

I.                 NETWORKS

 

1.               Firewalls
which meet International Computer Security Association (ICSA) Labs or Trust
Technology Assessment Program (TTAP) certification shall be used to protect all
networks and servers hosting Thomson information from hostile networks.  This requirement must be implemented before
going into production.

 

2.               Network-based
intrusion detection (IDS) shall be used to monitor all networks on which
servers hosting Thomson information are located.  This requirement shall be implemented within
thirty (30) day of the Amendment Effective Date.

 

II.             OPERATING SYSTEMS

 

1.               Host-based
intrusion detection (IDS) shall be used to monitor server(s) on which
Thomson information is hosted.  This
requirement shall be implemented within thirty (30) day of the Amendment Effective
Date.

 

2.               All
servers hosting Thomson information and/or providing services on behalf of
Thomson shall run common, industry standard anti-virus software with “real-time”
signature updates enabled.

 

3.               Service
SP shall have a documented patch management program.

 

III.         VULNERABILITY MANAGEMENT

 

1.               Vulnerability
assessment and/or penetration testing using commercial products and/or services
of all network subnet(s) and servers hosting Thomson information shall be
conducted at least semi-annually.

 

2.               Remediation
of critical and service affecting vulnerabilities shall be completed within 90
days of discovery.

 

IV.        APPLICATIONS

 

1.               Vulnerability
assessment and/or penetration testing using commercial products and/or services
of all applications processing Thomson information shall be conducted at least
annually, at Thomson’s cost and expense.

 

2.               Service
SP shall have a documented patch management program, and shall use all
commercially reasonable efforts to adhere to application vendor’s recommended
best practices.

 

13

 

PORTIONS OF THIS
EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF
THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE
24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

V.            ENCRYPTION

 

Definition:  “Strong encryption” is defined as the use of
1024-bit or greater keys for public keys and 128-bit or greater length keys for
symmetric keys.  AES is the preferred
cipher with 3DES being acceptable if AES is not available.  Under no circumstances should “proprietary”
or “secret” cipher algorithms be utilized. 
Use of any other ciphers must be reviewed by the market group security
department.

 

1.               In
all cases where personal information is collected from a customer or a Thomson
employee Secure Sockets Layer (SSL, version 3.0 required) session encryption
shall be used to protect the privacy of that information during collection and
transit.

 

2.               Use
of SSL shall be with Strong Encryption using a Global Server ID from VeriSign
or GeoTrust.

 

3.               All
personal information collected from a customer or a Thomson employee shall be
stored encrypted, using “strong encryption.”

 

4.               If
Thomson employees login to a server (e.g., to upload content, or to perform any
administrative function), then that logon shall utilize session encryption to
protect authentication information (e.g., username + password).  This session encryption may be SSL, Secure
Shell (SSH), SFTP or similar.  Use of
insecure means for logon (i.e., username + password transmitted in the clear)
is not acceptable (e.g. telnet, ftp).

 

VI.        ACCESS CONTROL

 

1.               All
systems hosting Thomson information and/or providing services on behalf of
Thomson shall be maintained in a secured data center environment that is
commercially reasonable and is intended to ensure an unbroken barrier to
unauthorized access.

 

2.               Access
to all systems hosting Thomson information and/or providing services on behalf
of Thomson shall be actively controlled through the use of physical and logical
access control systems which uniquely identify each individual requiring
access, grant access based on least privileges best practices, and log all
relevant access events.

 

3.               Each
person requiring access shall be issued a unique non-transferable system ID
which will be revoked upon termination of employment or when access to Thomson
related systems is no longer required.

 

VII.    INCIDENT RESPONSE

 

1.               Service
SP shall have a security incident response plan that will provide reports and
notifications to appropriate IT security managers on any suspected unusual
activity that may represent a potential security threat.  Any and all security breaches to systems
hosting Thomson information and/or providing services on behalf of Thomson
shall be reported to Thomson immediately.

 

VIII.          SECURITY PROGRAM

 

SP will have a data security program, including
policies and procedures, in place that documents the physical, technical and
administrative safeguards and controls that SP shall use to project the security
and integrity of the Data.  Such
safeguards and controls will, at a minimum be commercially reasonable and shall
include policies and procedures that define protections for Data that SP
personnel (as defined below) must follow for

 

14

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND
HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

access to Data. 
At a minimum such policies and procedures will include individual
employee responsibilities for protecting Data and permitted uses of such Data,
including but not limited to, the limitations on use of Data to the engagement
on which the employee is working and limitations on access to detailed Data as
set forth below.

 

The Data Security Program
will provide reasonable assurance that:

 

1.               The organization structure provides a division
of responsibilities within SP.

 

2.               Implementations
or changes to new or existing operating systems/hardware are authorized,
tested, documented, and approved prior to being implemented.

 

3.               Implementations
of new applications and changes to existing applications are authorized,
tested, version controlled, documented, and approved prior to being
implemented.

 

4.               Logical
access for internal company personnel to operating systems, applications and
data files is restricted to authorized individuals and programs.

 

5.               Logical
access by customers and their representatives to applications and information
is limited to customer-approved individuals.

 

6.               Physical
access to the data center, headquarters and off-site storage is restricted to
authorized individuals.

 

7.               Critical
systems are backed up and monitored for performance and capacity metrics.

 

IX.        EMPLOYEES OBLIGATIONS

 

All
SP personnel (deemed to include SP employees as well as individuals who are
agents or independent contractors of SP) who have access to Thomson data shall
be bound by SP’s Code of Conduct.  All
employees and contractors who have access to Thomson’s data and are assigned to
work on Thomson’s clients, shall attend an initial training program on SP’s
Confidentiality and Security policies and shall be trained not less than
annually on the security policies.  Upon
request by Thomson, SP shall make available for onsite review an overview of SP’s
current security policies.  SP will
promptly notify Thomson of any material changes to the policies and procedures
that would reasonably be considered to weaken or relax such policies and
procedures.

 

X.            CERTIFICATION AND AUDIT RIGHTS

 

During
the term of this Agreement, Thomson may request, once per calendar year, to
certify SP is in full compliance with the terms of this Agreement.

 

15

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND
HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

EXHIBIT J

to the

MASTER SERVICES AGREEMENT

Dated September 9, 2004, as
amended

Between Virtusa and Thomson

 

BUSINESS CONTINUATION PLAN

To be agreed.

 

16

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE
BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

Amendment No. 3 to the Master
Services Agreement

 

This Amendment No. 3 (the “Amendment”) is effective as
of March 1, 2008 and hereby amends the Master Services Agreement (“Agreement”)
dated as of September 9, 2004, as amended by and between Thomson Healthcare
Inc. (“Thomson”) and Virtusa Corporation (“SP”). Any capitalized term not
defined herein shall have the meaning given it in the Agreement.

 

FOR VALUABLE CONSIDERATION, the parties agree as
follows:

 

1.             The
term for “Base Rates” as used herein is [*******************************.]  The term for “Extended Rates” as used herein
is [*************************************.]

 

2.             Base
Rates shall expire after expiration of the Base Rate Term and shall be reviewed
and mutually agreed upon by the parties in writing prior to or upon expiration
of the Base Rate Term. Extended Rates shall expire after expiration of the
Extended Term and shall be reviewed and mutually agreed upon by the parties in
writing prior to or upon expiration of the Extended Term but in no event shall
the Base Rates  be below the Extended
Rates in this amendment or in the Base Rate Term.

 

3.             The
parties agree to amend the Agreement as follows: “Base Rates” as defined below
are applicable during the Base Rate Term. The “Extended Rates” shall apply to
Services and Work Product provided only on or after the first full month after
the date of Thomson’s authorized execution of the applicable Statement of Work
(“SOW”) during an Extended Term.

 

a.             “Base Rates” shown in the following table shall apply to
Services provided during the Base Rate Term by a resource pursuant to a single
SOW which [***************************************************.]  If such resource provides Services after
expiration of the Base Rate Term, such Services will be at rates to be mutually
agreed to between the parties in writing.

 

1

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE
BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

Base Rates for Base Rate Term

 

	
  Development and Consulting Project 

  Roles

  	
   

  	
  US Onsite

  Rate

  	
   

  	
  US

  Offshore

  Rate 

  	
   

  	
  Europe

  Onsite

  rate (GBP)

  	
   

  	
  Europe

  Offshore

  Rate

  (GBP)

  	
   

  
	
  Dev Engineer

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Sr. Dev Engineer, Tech
  Lead, Business Analyst, Project Mgr, Database Administrator

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Architect, Sr. Business
  Analyst

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

	
  Maintenance,
  QA & Support Project Roles

  	
   

  	
  US Onsite

  Rate

  	
   

  	
  US

  Offshore

  Rate 

  	
   

  	
  Europe

  Onsite

  rate

  	
   

  	
  Europe

  Offshore

  Rate

  	
   

  
	
  QA Eng or Associate QA
  Eng; Maint. Eng or Associate Maint. Eng

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Sr. Maint Eng or Sr. QA
  Eng, Maint Tech Lead or QA Lead, Project Mgr, Business Analyst

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Support Roles for Data
  Operations - Cleansing, loading etc. 
  These resources are less technically skilled than engineers.

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

2

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE
BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

b.             “Extended  Rates” shown
in the following table shall apply to Services provided during the
Extended  Term by a resource pursuant to
a single SOW  which requires
[***********************************************.] If such resource provides Services
after expiration of the Extended Term hereunder, such Services will be at rates
to be mutually agreed to between the parties in writing.

 

Extended Rates for Extended
Rate Term

 

	
  Development and Consulting Project
  Roles

  	
   

  	
  US Onsite Rate

  	
   

  	
  US Offshore

  Rate

  	
   

  	
  Europe

  Onsite rate

  (GBP)

  	
   

  	
  Europe

  Offshore Rate

  (GBP)

  	
   

  
	
  Dev Engineer

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Sr. Dev Engineer, Tech
  Lead, Business Analyst, Project Mgr, Database Admin

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Architect, Sr. Business
  Analyst

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

	
  Maintenance,
  QA & Support Project Roles

  	
   

  	
  US Onsite Rate

  	
   

  	
  US Offshore

  Rate

  	
   

  	
  Europe onsite

  rate

  	
   

  	
  Europe

  Offshore Rate

  	
   

  
	
  QA Eng or Associate QA
  Eng; Maint Eng or Associate Maint Eng

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Sr. Maint Eng or Sr. QA
  Eng, Maint Tech Lead or QA Lead, Business Analyst, Proj Mgr

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Support Roles for Data
  Operations - Cleansing, loading etc. 
  These resources are less technically skilled than engineers.

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

3

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE
BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

4.             If
an Extended  Resource is billed at
Extended  Rates during the Extended  Term, and Thomson subsequently elects to
terminate such resource’s Services
[*********************************************************************************************************.]

 

5.             Onsite
resources providing Services at any of the following locations
[**********************************************************************]:

 

·                  New York, Boston,

·                  Chicago,

·                  San Francisco,

·                  San Diego and

·                  Los Angeles.

 

5.             Except
as specifically modified or amended by this Amendment, the terms and conditions
of the Agreement shall remain in full force and effect.  In the event of any conflict between the
terms and conditions of this Amendment and the Agreement, the terms and
conditions of this Amendment shall take precedence over the Agreement.

 

IN WITNESS WHEREOF, each of the parties hereto has
caused the Amendment to be executed by a duly authorized representative.

 

	
  Thomson Healthcare Inc.

  	
   

  	
  Virtusa Corporation

  
	
   

  	
   

  	
   

  
	
  /s/ Frank Licata

  	
   

  	
  /s/ Thomas Holler

  
	
  Signature

  	
   

  	
  Signature

  
	
  Frank Licata

  	
   

  	
  Thomas Holler

  
	
  Name

  	
   

  	
  Name

  
	
  SVP CTO

  	
   

  	
  CFO

  
	
  Title

  	
   

  	
  Title

  

 

4

 

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

AMENDMENT No. 4

to
the

Master
Consulting Services Agreement (as amended, the “Agreement”)

Dated
September 9, 2004 Between

Virtusa
Corporation (“Virtusa”)

and

Thomson
Reuters (Healthcare) Inc. (“TRH”) (f/k/a/ Thomson Healthcare Inc.)

 

[Capitalized
terms used but not defined herein have the meanings ascribed to them in the
Agreement.]

 

WHEREAS, pursuant to
Section 9.1 of the Agreement, the parties wish to establish a [***]
arrangement in lieu of [***] in each Statement of Work; and

 

NOW, THEREFORE, in
consideration of the agreements and obligations set forth in the Agreement and
this Amendment No. 4, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.     Beginning on [************************************************],
the [***] stated on the [**************************************************]  attached hereto will apply to all
Services provided by Virtusa.  For the
avoidance of doubt, such fees will continue to apply to any [************************]
upon [***] of the Agreement [*************************.]

 

2.     All terms and conditions not specifically modified in this
Amendment shall remain in full force and effect, and shall apply to this
Amendment. In the event that there is any inconsistency or contradiction
between the terms of the Agreement and this Amendment, the terms of this
Amendment shall prevail.

 

1

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY
OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES OMISSIONS.

 

IN WITNESS WHEREOF, the
parties hereto have entered into this Amendment intending it to be effective as
of June 1, 2009.

 

	
  Thomson
  Reuters (Healthcare) Inc.

  	
   

  	
  Virtusa Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John E. Thomas

  	
   

  	
  By:

  	
  /s/ Paul Tutun

  
	
   

  	
  John E. Thomas

  	
   

  	
   

  	
   

  
	
   

  	
  Technology Counsel

  	
   

  	
  Print:

  	
  Paul D. Tutun

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  V.P & General
  Counsel

  
	
  Date:

  	
  May 27, 2009

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  May 14, 2009

  

 

2

 

PORTIONS
OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT; [***] DENOTES
OMISSIONS.

 

EXHIBIT No. 1

 

Virtusa
Rate Card for Thomson Reuters 2009  (UK Onsite rates demominated in GBP; US Onsite and
Offshore Rates denominated in USD)

 

	
  Roles

  	
   

  	
  Offshore Rates (USD)

  	
   

  	
  US Onsite Rates (USD)

  	
   

  	
  UK Onsite Rates (GBP)

  	
   

  
	
  Support
  Roles for Data Operations - Cleansing, loading etc. These resources are less
  technically skilled than engineers.

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintenance
  Engineer, QA Engineer

  	
   

  	
  [***]

  	
   

  	
  [***]
  

  	
   

  	
  [***]
  

  	
   

  
	
  Development
  Engineer, Sr. Maintenance Engineer, Sr. QA Engineer, QA Lead

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  
	
  Sr.
  Development Engineer, Technical Lead, Business Analyst, Project Manager,
  Database Administrator

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  
	
  Architect, Sr.
  Business Analyst

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  

 

3

 

AMENDMENT No. 5

to
the

Master
Consulting Services Agreement (as amended, the “Agreement”)

Dated
September 9, 2004 Between

Virtusa
Corporation (“Virtusa”)

and

Thomson
Reuters (Healthcare) Inc. (“TRH”) (f/k/a/ Thomson Healthcare Inc.)

 

[Capitalized
terms used but not defined herein have the meanings ascribed to them in the
Agreement.]

 

WHEREAS, pursuant to
Section 11.1 of the Agreement, the parties wish to extend the term of the
Agreement;

 

NOW, THEREFORE, in
consideration of the agreements and obligations set forth in the Agreement and
this Amendment No. 5, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.               Section 11.1 of the
Agreement is hereby terminated and replaced with the following, effective as of
September 4, 2009.   The Term of
this Agreement begins on the Effective Date and shall continue until terminated
as set forth below.”

 

2.               All other terms and
conditions in the Agreement not specifically modified in this Amendment shall
remain in full force and effect, and shall apply to this Amendment. In the
event that there is any inconsistency or contradiction between the terms of the
Agreement and this Amendment, the terms of this Amendment shall prevail.

 

IN WITNESS WHEREOF, the
parties hereto have entered into this Amendment intending it to be effective as
of September 1st, 2009.

 

	
  Thomson
  Reuters (Healthcare) Inc.

  	
   

  	
  Virtusa Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John E. Thomas

  	
   

  	
  By:

  	
  /s/ Paul D. Tutun

  
	
   

  	
  John E. Thomas

  	
   

  	
   

  	
   

  
	
   

  	
  Technology Counsel

  	
   

  	
  Print:

  	
  Paul D. Tutun

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  V.P. & General
  Counsel

  
	
  Date:

  	
  9/3/09

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  9/12/09

  

 

1

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