-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QdXZXTBayUyZXZc3E0HXzftROhqElrpqSi5q8mAJZ/V1WJ8EV3YQzEXZxTv0tIwu V84yuWrt4NHbJY9d7o3LzQ== /in/edgar/work/20000814/0000927356-00-001691/0000927356-00-001691.txt : 20000921 0000927356-00-001691.hdr.sgml : 20000921 ACCESSION NUMBER: 0000927356-00-001691 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CSG SYSTEMS INTERNATIONAL INC CENTRAL INDEX KEY: 0001005757 STANDARD INDUSTRIAL CLASSIFICATION: [7374 ] IRS NUMBER: 470783182 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-27512 FILM NUMBER: 700086 BUSINESS ADDRESS: STREET 1: 7887 EAST BELLEVIEW AVE STREET 2: SUITE 1000 CITY: ENGLEWOOD STATE: CO ZIP: 80111 BUSINESS PHONE: 3037962850 MAIL ADDRESS: STREET 1: 5251 DTC PARKWAY SUITE 625 CITY: ENGLEWOOD STATE: CO ZIP: 80111 10-Q 1 0001.txt FORM 10-Q FOR CSG SYSTEMS INTERNATIONAL FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _________________ Commission file number 0-27512 CSG SYSTEMS INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware 47-0783182 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 7887 East Belleview, Suite 1000 Englewood, Colorado 80111 (Address of principal executive offices, including zip code) (303) 796-2850 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. YES X NO ----- ----- Shares of common stock outstanding at August 11, 2000: 52,327,497 CSG SYSTEMS INTERNATIONAL, INC. FORM 10-Q For the Quarter Ended June 30, 2000 INDEX Page No. -------- Part I - FINANCIAL INFORMATION Item 1. Condensed Consolidated Balance Sheets as of June 30, 2000 and December 31, 1999.......................................... 3 Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2000 and 1999 ....................... 4 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2000 and 1999 ........................... 5 Notes to Condensed Consolidated Financial Statements........... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.......................................... 9 Item 3. Quantitative and Qualitative Disclosures About Market Risk.....16 Part II - OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders............17 Item 6. Exhibits and Reports on Form 8-K...............................17 Signatures.....................................................19 Index to Exhibits..............................................20 2 CSG SYSTEMS INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)
June 30, December 31, 2000 1999 -------- ------------ ASSETS (unaudited) ------ Current assets: Cash and cash equivalents................................................................ $ 69,754 $ 48,676 Accounts receivable- Trade- Billed, net of allowance of $3,351 and $2,975..................................... 84,663 67,477 Unbilled.......................................................................... 4,598 8,311 Other................................................................................. 857 909 Deferred income taxes.................................................................... 1,922 1,972 Other current assets..................................................................... 4,476 2,850 -------- -------- Total current assets.................................................................. 166,270 130,195 -------- -------- Property and equipment, net of depreciation of $36,868 and $31,864.......................... 32,270 26,507 Software, net of amortization of $38,181 and $37,251........................................ 5,215 6,145 Noncompete agreements and goodwill, net of amortization of $29,936 and $29,727.............. 2,233 2,652 Client contracts and related intangibles, net of amortization of $26,799 and $24,779 ....... 53,323 55,343 Deferred income taxes....................................................................... 50,220 52,845 Other assets................................................................................ 921 1,281 -------- -------- Total assets.......................................................................... $310,452 $274,968 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current liabilities: Current maturities of long-term debt..................................................... $ 23,882 $ 21,711 Customer deposits........................................................................ 11,128 10,549 Trade accounts payable................................................................... 11,102 9,450 Accrued employee compensation............................................................ 13,855 16,386 Deferred revenue......................................................................... 8,613 16,746 Accrued income taxes..................................................................... 13,651 11,710 Other current liabilities................................................................ 10,511 11,551 -------- -------- Total current liabilities............................................................. 92,742 98,103 -------- -------- Non-current liabilities: Long-term debt, net of current maturities................................................. 46,118 59,289 Deferred revenue.......................................................................... 489 714 -------- -------- Total non-current liabilities......................................................... 46,607 60,003 -------- -------- Stockholders' equity: Preferred stock, par value $.01 per share; 10,000,000 shares authorized; zero shares issued and outstanding..................................................... -- -- Common stock, par value $.01 per share; 100,000,000 shares authorized; 52,212,946 shares and 51,638,629 shares outstanding.................................... 530 523 Common stock warrants; 3,000,000 warrants outstanding..................................... 26,145 26,145 Additional paid-in capital................................................................ 151,632 136,373 Deferred employee compensation............................................................ (3) (48) Notes receivable from employee stockholders............................................... (48) (115) Accumulated other comprehensive income-cumulative translation adjustments................. (523) (120) Treasury stock, at cost, 815,986 shares and 722,486 shares................................ (23,403) (20,374) Accumulated earnings (deficit)............................................................ 16,773 (25,522) -------- -------- Total stockholders' equity ........................................................... 171,103 116,862 -------- -------- Total liabilities and stockholders' equity............................................ $310,452 $274,968 ======== ========
The accompanying notes are an integral part of these condensed consolidated financial statements. 3 CSG SYSTEMS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (in thousands, except per share amounts)
Three months ended Six months ended --------------------- --------------------- June 30, June 30, June 30, June 30, 2000 1999 2000 1999 -------- -------- -------- -------- Revenues: Processing and related services.................. $ 72,921 $ 62,629 $143,548 $122,580 Software and professional services............... 23,141 13,881 44,577 25,017 -------- -------- -------- -------- Total revenues.......................... 96,062 76,510 188,125 147,597 -------- -------- -------- -------- Cost of Revenues: Cost of processing and related services.......... 26,315 22,822 52,085 46,858 Cost of software and professional services....... 9,903 8,888 20,419 14,737 -------- -------- -------- -------- Total cost of revenues.................. 36,218 31,710 72,504 61,595 -------- -------- -------- -------- Gross margin (exclusive of depreciation)............. 59,844 44,800 115,621 86,002 -------- -------- -------- -------- Operating expenses: Research and development......................... 10,366 8,217 20,254 15,837 Selling, general and administrative.............. 11,084 11,372 21,172 22,318 Depreciation..................................... 2,962 2,495 5,774 4,904 -------- -------- -------- -------- Total operating expenses................ 24,412 22,084 47,200 43,059 -------- -------- -------- -------- Operating income..................................... 35,432 22,716 68,421 42,943 -------- -------- -------- -------- Other income (expense): Interest expense.............................. (1,482) (1,809) (3,023) (4,033) Interest income............................... 1,355 816 2,618 1,457 Other......................................... (24) 4 (17) (17) -------- -------- -------- -------- Total other............................. (151) (989) (422) (2,593) -------- -------- -------- -------- Income before income taxes........................... 35,281 21,727 67,999 40,350 Income tax provision............................. (13,295) (8,234) (25,704) (15,275) -------- -------- -------- -------- Net income........................................... $ 21,986 $ 13,493 $ 42,295 $ 25,075 ======== ======== ======== ======== Basic net income per common share: Net income available to common stockholders...... $ 0.42 $ 0.26 $ 0.81 $ 0.49 ======== ======== ======== ======== Weighted average common shares................... 52,158 51,710 52,007 51,637 ======== ======== ======== ======== Diluted net income per common share: Net income available to common stockholders...... $ 0.39 $ 0.25 $ 0.74 $ 0.46 ======== ======== ======== ======== Weighted average common shares................... 56,910 54,031 56,870 54,123 ======== ======== ======== ========
The accompanying notes are an integral part of these condensed consolidated financial statements. 4 CSG SYSTEMS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (in thousands)
Six months ended --------------------- June 30, June 30, 2000 1999 -------- -------- Cash flows from operating activities: Net income.................................................. $ 42,295 $ 25,075 Adjustments to reconcile net income to net cash provided by operating activities- Depreciation............................................. 5,774 4,904 Amortization............................................. 3,663 7,764 Deferred income taxes.................................... 2,671 4,911 Stock-based employee compensation........................ 45 146 Changes in operating assets and liabilities: Trade accounts and other receivables, net............... (13,432) (3,662) Other current and noncurrent assets..................... (1,643) (231) Accounts payable and accrued liabilities................ (1,477) 1,546 -------- -------- Net cash provided by operating activities............ 37,896 40,453 -------- -------- Cash flows from investing activities: Purchases of property and equipment, net.................... (11,513) (4,346) Conversion and other incentive payments..................... -- (8,205) -------- -------- Net cash used in investing activities................ (11,513) (12,551) -------- -------- Cash flows from financing activities: Proceeds from issuance of common stock...................... 9,100 3,888 Repurchase of common stock.................................. (2,987) -- Payments on notes receivable from employee stockholders..... 44 325 Payments on long-term debt.................................. (11,000) (37,250) -------- -------- Net cash used in financing activities................ (4,843) (33,037) -------- -------- Effect of exchange rate fluctuations on cash................... (462) (392) -------- -------- Net increase (decrease) in cash and cash equivalents........... 21,078 (5,527) Cash and cash equivalents, beginning of period................. 48,676 39,593 -------- -------- Cash and cash equivalents, end of period....................... $ 69,754 $ 34,066 ======== ======== Supplemental disclosures of cash flow information: Cash paid during the period for- Interest................................................... $ 3,140 $ 3,689 Income taxes............................................... $ 14,865 $ 6,029
The accompanying notes are an integral part of these condensed consolidated financial statements. 5 CSG SYSTEMS INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL The condensed consolidated financial statements at June 30, 2000, and for the three and six months then ended are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim period. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management's discussion and analysis of financial condition and results of operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 1999, filed with the Securities and Exchange Commission (the Company's 1999 10-K). The results of operations for the three and six months ended June 30, 2000, are not necessarily indicative of the results for the entire year ending December 31, 2000. 2. STOCKHOLDERS' EQUITY Common Stock Warrants. AT&T holds 3.0 million warrants to purchase the Company's Common Stock at an exercise price of $12 per share. The warrants expire in September 2002. See additional discussion of the Common Stock Warrants in the Company's 1999 10-K. Stock Repurchase Plan. In August 1999, the Company's Board of Directors approved a stock repurchase plan which authorized the Company at its discretion to purchase up to a total of 5.0 million shares of its Common Stock from time to time as market and business conditions warrant. This program represents approximately 10% of the Company's outstanding shares. During the three months ended June 30, 2000, the Company did not repurchase any shares under the program. During the three months ended March 31, 2000, the Company repurchased 75,000 shares of Common Stock for approximately $3.0 million ($39.92 per share). The Company has purchased a total of 730,500 shares for approximately $23.2 million (a weighted-average price of $31.81 per share) since the program was announced. The repurchased shares are held as treasury shares. 3. NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share is consistent with the calculation of basic net income per common share while giving effect to dilutive potential common shares outstanding during the period. Basic and diluted earnings per share ("EPS") are presented on the face of the Company's Condensed Consolidated Statements of Income. No reconciliation of the EPS numerator is necessary as the basic and diluted net income available to common stockholders is the same for all periods presented. The reconciliation of the EPS denominator is as follows (in thousands): 6
Three Months Ended Six Months Ended June 30, June 30, -------- -------- 2000 1999 2000 1999 ------ ------ ------ ------ Basic common shares outstanding.............. 52,158 51,710 52,007 51,637 Dilutive effect of common stock options...... 2,471 2,321 2,582 2,486 Dilutive effect of common stock warrants..... 2,281 --- 2,281 --- ------ ------ ------ ------ Diluted common shares outstanding............ 56,910 54,031 56,870 54,123 ====== ====== ====== ======
Common Stock options of 92,000 shares and 568,450 shares for the three months ended June 30, 2000 and 1999, and 92,000 shares and 542,150 shares for the six months ended June 30, 2000 and 1999, respectively, have been excluded from the computation of diluted EPS because the exercise prices of these options were greater than the average market price of the common shares for the respective periods. The diluted potential common shares related to the Common Stock warrants were excluded from the computation of diluted common shares outstanding for the three and six months ended June 30, 1999, as the warrants were not considered exercisable. During the three and six months ended June 30, 2000, all of the 3.0 million warrants were considered exercisable. 5. COMPREHENSIVE INCOME The Company's components of comprehensive income were as follows (in thousands):
Three Months Ended Six Months Ended June 30, June 30, -------- -------- 2000 1999 2000 1999 ------- ------- ------- ------- Net income..................... $21,986 $13,493 $42,295 $25,075 Foreign currency translation adjustments................. (300) (143) (403) (307) ------- ------- ------- ------- Comprehensive income........... $21,686 $13,350 $41,892 $24,768 ======= ======= ======= =======
6. RECLASSIFICATION OF PRIOR PERIOD AMOUNTS Certain June 30, 1999 amounts have been reclassified to conform with the June 30, 2000 presentation. 7. SERVICE AGREEMENTS The Company has service agreements with First Data Corporation ("FDC") and its subsidiaries for data processing services, communication charges and other related services. FDC provides data processing and related services required for the operation of the Company's CCS system. Effective April 1, 2000, the Company extended its contract with FDC for data processing services through June 30, 2005. The contract was previously scheduled to expire on December 31, 2001. 7 8. ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YET EFFECTIVE In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition". This SAB provides additional guidance on revenue recognition criteria and related disclosure requirements. This SAB is effective for the Company in the fourth quarter of 2000. Adoption of this SAB is not expected to have a significant effect on the Company's consolidated financial statements. In March 2000, the Financial Accounting Standards Board issued FASB Interpretation No. 44, "Accounting for Certain Transactions involving Stock Compensation, an interpretation of APB Opinion No. 25". The Interpretation clarifies the application of APB Opinion 25 for certain issues involving employee stock compensation. The Interpretation is generally effective July 1, 2000. Adoption of this Interpretation is not expected to have a significant effect on the Company's consolidated financial statements. 8 CSG SYSTEMS INTERNATIONAL, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations - --------------------- The following table sets forth certain financial data and the percentage of total revenues of the Company for the periods indicated (in thousands):
Three months ended June 30, Six months ended June 30, ------------------------------------- ------------------------------------- 2000 1999 2000 1999 ----------------- ----------------- ----------------- ----------------- % of % of % of % of Amount Revenue Amount Revenue Amount Revenue Amount Revenue -------- ------- -------- ------- -------- ------- -------- ------- Revenues: Processing and related services........... $ 72,921 75.9% $ 62,629 81.9% $143,548 76.3% $122,580 83.1% Software and professional services........ 23,141 24.1 13,881 18.1 44,577 23.7 25,017 16.9 -------- ------- -------- ------- -------- ------- -------- ------- Total revenues................... 96,062 100.0 76,510 100.0 188,125 100.0 147,597 100.0 -------- ------- -------- ------- -------- ------- -------- ------- Cost of Revenues: Cost of processing and related services... 26,315 27.4 22,822 29.8 52,085 27.7 46,858 31.7 Cost of software and professional services 9,903 10.3 8,888 11.6 20,419 10.8 14,737 10.0 -------- ------- -------- ------- -------- ------- -------- ------- Total cost of revenues........... 36,218 37.7 31,710 41.4 72,504 38.5 61,595 41.7 -------- ------- -------- ------- -------- ------- -------- ------- Gross margin (exclusive of depreciation)..... 59,844 62.3 44,800 58.6 115,621 61.5 86,002 58.3 -------- ------- -------- ------- -------- ------- -------- ------- Operating expenses: Research and development.................. 10,366 10.8 8,217 10.7 20,254 10.8 15,837 10.7 Selling, general and administrative....... 11,084 11.5 11,372 14.9 21,172 11.2 22,318 15.2 Depreciation.............................. 2,962 3.1 2,495 3.3 5,774 3.1 4,904 3.3 -------- ------- -------- ------- -------- ------- -------- ------- Total operating expenses.............. 24,412 25.4 22,084 28.9 47,200 25.1 43,059 29.2 -------- ------- -------- ------- -------- ------- -------- ------- Operating income............................. 35,432 36.9 22,716 29.7 68,421 36.4 42,943 29.1 -------- ------- -------- ------- -------- ------- -------- ------- Other income (expense): Interest expense........................ (1,482) (1.6) (1,809) (2.4) (3,023) (1.6) (4,033) (2.8) Interest income......................... 1,355 1.4 816 1.1 2,618 1.4 1,457 1.0 Other................................... (24) -- 4 -- (17) -- (17) -- -------- ------- -------- ------- -------- ------- -------- ------- Total other........................... (151) (0.2) (989) (1.3) (422) (0.2) (2,593) (1.8) -------- ------- -------- ------- -------- ------- -------- ------- Income before income taxes................... 35,281 36.7 21,727 28.4 67,999 36.2 40,350 27.3 Income tax provision...................... (13,295) (13.8) (8,234) (10.8) (25,704) (13.7) (15,275) (10.3) -------- ------- -------- ------- -------- ------- -------- ------- Net income................................... $ 21,986 22.9% $ 13,493 17.6% $ 42,295 22.5% $ 25,075 17.0% ======== ======= ======== ======= ======== ======= ======== =======
9 Three Months Ended June 30, 2000 Compared to Three Months Ended June 30, 1999 Revenues. Total revenues for the three months ended June 30, 2000, increased 25.6% to $96.1 million, from $76.5 million for the three months ended June 30, 1999. Revenues from processing and related services for the three months ended June 30, 2000, increased 16.4% to $72.9 million, from $62.6 million for the three months ended June 30, 1999. Of the total increase in revenue, approximately 68% resulted from an increase in the number of customers of the Company's clients which were serviced by the Company and approximately 32% was due to increased revenue per customer. Customers serviced as of June 30, 2000 and 1999, respectively, were 34.5 million and 31.2 million, an increase of 10.8%. The increase in the number of customers serviced was due to the conversion of additional customers by new and existing clients to the Company's systems, and internal customer growth experienced by existing clients. From April 1, 2000 through June 30, 2000, the Company converted and processed approximately 0.1 million new customers on its systems. Revenues from software and professional services for the three months ended June 30, 2000, increased 66.7% to $23.2 million, from $13.9 million for the three months ended June 30, 1999. The Company sells its software products and professional services principally to its existing client base to (i) enhance the core functionality of its service bureau processing application, (ii) increase the efficiency and productivity of its clients' operations, and (iii) allow clients to effectively rollout new products and services to new and existing markets. The increase in revenue between years relates to the continued strong demand for the Company's existing software products (principally, call center applications) and the rollout of additional new products and services to meet the changing needs of the Company's client base. Total annualized domestic revenue per customer account for the second quarter of 2000 was $11.11, compared to $9.49 for the same period in 1999, an increase of 17.1%. Revenue per customer increased primarily due to increased software sales to new and existing clients, and to a lesser degree, increased processing revenue per customer, as follows: Three Months Ended June 30 -------------------- 2000 1999 ---- ---- Processing and related services.......... $ 8.46 $8.08 Software and professional services....... 2.65 1.41 ------ ----- Total................................. $11.11 $9.49 ====== ===== Cost of Processing and Related Services. Direct processing costs as a percentage of related processing revenues were 36.1% (63.9% gross margin) for the three months ended June 30, 2000, compared to 36.4% (63.6% gross margin) for the three months ended June 30, 1999. The decrease in costs as a percentage of related revenues between periods relates primarily to (i) the Company's continued focus on cost controls and reductions within its core processing business, and (ii) a decrease in amortization of client contracts from the CSG Acquisition, which became fully amortized as of November 30, 1999. Such amortization was $0.75 million for the second quarter of 1999. Cost of Software and Professional Services. The cost of software and professional services as a percentage of related revenues was 42.8% (57.2% gross margin) for the three months ended June 30, 2000, compared to 64.0% (36.0% gross margin) for the three months ended June 30, 1999. The improvement between periods relates primarily to (i) better overall leveraging of costs as a result of higher software and professional services revenues for the quarter, and (ii) the timing of the sales cycle for new products and services. Gross Margin. Overall gross margin for the three months ended June 30, 2000, increased 33.6% to $59.8 million, from $44.8 million for the three months ended June 30, 1999, due primarily to revenue growth. The gross margin percentage increased to 62.3% for the three months ended June 30, 2000, compared to 58.6% for 10 the three months ended June 30, 1999. The overall increase in the gross margin percentage is due primarily to the increase in gross margin for software and professional services due to the factors discussed above. Research and Development Expense. Research and development (R&D) expense for the three months ended June 30, 2000, increased 26.2% to $10.4 million, from $8.2 million for the three months ended June 30, 1999. As a percentage of total revenues, R&D expense increased to 10.8% for the three months ended June 30, 2000, from 10.7% for the three months ended June 30, 1999. The Company did not capitalize any software development costs during the three months ended June 30, 2000 and 1999. The overall increase in the R&D expenditures between periods is due primarily to increased efforts on several products which are in development and enhancements of the Company's existing products. The Company's development efforts for the second quarter of 2000 were focused primarily on the development of products to: . increase the efficiencies and productivity of its clients' operations, . address the systems needed to support the convergence of the communications markets, . support a web-enabled, customer self-care and electronic bill presentment/payment application, . allow clients to effectively rollout new products and services to new and existing markets, such as residential telephony, High-Speed Data/ISP and IP markets (including CSG.net, the Company's ASP offering to the ISP market), and . address the international customer care and billing system market. The Company expects its development efforts to focus on similar tasks through the remainder of 2000. Selling, General and Administrative Expense. Selling, general and administrative (SG&A) expense for the three months ended June 30, 2000, decreased 2.5% to $11.1 million, from $11.4 million for the three months ended June 30, 1999. As a percentage of total revenues, SG&A expense decreased to 11.5% for the three months ended June 30, 2000, from 14.9% for the three months ended June 30, 1999. The decrease in SG&A expense relates primarily to the noncompete agreement from the CSG Acquisition becoming fully amortized as of November 30, 1999 (such amortization was $1.2 million for the second quarter of 1999), offset by an increase in certain SG&A expenses related primarily to the continued expansion of the Company's management and administrative staff and other administrative costs to support the Company's overall growth. Depreciation Expense. Depreciation expense for the three months ended June 30, 2000, increased 18.7% to $3.0 million, from $2.5 million for the three months ended June 30, 1999. The increase in expense relates to capital expenditures made during the last six months of 1999 and the first six months of 2000 in support of the overall growth of the Company, consisting principally of (i) computer hardware and related equipment, (ii) statement processing equipment, and (iii) facilities expansion. Depreciation expense for all property and equipment is reflected separately in the aggregate and is not included in the other components of operating expenses. Operating Income. Operating income for the three months ended June 30, 2000, was $35.4 million or 36.9% of total revenues, compared to $22.7 million or 29.7% of total revenues for the three months ended June 30, 1999. The increase between years relates to the factors discussed above. Interest Expense. Interest expense for the three months ended June 30, 2000, decreased 18.1% to $1.5 million, from $1.8 million for the three months ended June 30, 1999, with the decrease attributable primarily to (i) scheduled principal payments on the Company's long-term debt, and (ii) optional prepayments on long-term debt during 1999. The balance of the Company's long- term debt as of June 30, 2000, was $70.0 million, compared to $91.0 million as of June 30, 1999, a decrease of $21.0 million. Interest Income. Interest income for the three months ended June 30, 2000, increased 66.1% to $1.4 million, from $0.8 million for the three months ended June 30, 1999, with the increase attributable primarily to an 11 increase in operating funds available for investment. Income Tax Provision. For the three months ended June 30, 2000, the Company recorded an income tax provision of $13.3 million, or an effective income tax rate of approximately 38%, which represents the Company's estimate of the effective book income tax rate for 2000. The Company's effective income tax rate for 1999 was also approximately 38%. As of June 30, 2000, management continues to believe that sufficient taxable income will be generated to realize the entire benefit of its deferred tax assets. The Company's assumptions of future profitable operations are supported by its strong operating performances over the last several years. Six Months Ended June 30, 2000 Compared to Six Months Ended June 30, 1999 Revenues. Total revenues for the six months ended June 30, 2000, increased 27.5% to $188.1 million, from $147.6 million for the six months ended June 30, 1999. Revenues from processing and related services for the six months ended June 30, 2000, increased 17.1% to $143.5 million, from $122.6 million for the six months ended June 30, 1999. Of the total increase in revenue, approximately 71% resulted from an increase in the number of customers of the Company's clients which were serviced by the Company and approximately 29% was due to increased revenue per customer. The increase in the number of customers serviced was due to the conversion of additional customers by new and existing clients to the Company's systems, and internal customer growth experienced by existing clients. From January 1, 2000 through June 30, 2000, the Company converted and processed approximately 0.3 million new customers on its systems. Revenues from software and professional services for the six months ended June 30, 2000, increased 78.2% to $44.6 million, from $25.0 million for the six months ended June 30, 1999. The Company sells its software products and professional services principally to its existing client base to (i) enhance the core functionality of its service bureau processing application, (ii) increase the efficiency and productivity of its clients' operations, and (iii) allow clients to effectively rollout new products and services to new and existing markets. The increase in revenue between years relates to the continued strong demand for the Company's existing software products (principally, call center applications) and the rollout of additional new products and services to meet the changing needs of the Company's client base. Total annualized domestic revenue per customer account for the six months ended June 30, 2000 was $10.95, compared to $9.30 for the same period in 1999, an increase of 17.7%. Revenue per customer increased primarily due to increased software sales to new and existing clients, and to a lesser degree, increased processing revenue per customer, as follows: Six Months Ended June 30 -------------------- 2000 1999 ---- ---- Processing and related services.......... $ 8.38 $8.02 Software and professional services....... 2.57 1.28 ------ ----- Total................................. $10.95 $9.30 ====== ===== Cost of Processing and Related Services. Direct processing costs as a percentage of related processing revenues were 36.3% (63.7% gross margin) for the six months ended June 30, 2000, compared to 38.2% (61.8% gross margin) for the six months ended June 30, 1999. The decrease in costs as a percentage of related revenues between periods relates primarily to (i) the Company's continued focus on cost controls and reductions within its core processing business, and (ii) a decrease in amortization of client contracts from the CSG Acquisition, which became fully amortized as of November 30, 1999. Such amortization was $1.5 million for the six months ended June 30, 1999. 12 Cost of Software and Professional Services. The cost of software and professional services as a percentage of related revenues was 45.8% (54.2% gross margin) for the six months ended June 30, 2000, compared to 58.9% (41.1% gross margin) for the six months ended June 30, 1999. The improvement between periods relates primarily to (i) better overall leveraging of costs as a result of higher software and professional services revenues for the period, and (ii) the timing of the sales cycle for new products and services. Gross Margin. Overall gross margin for the six months ended June 30, 2000, increased 34.4% to $115.6 million, from $86.0 million for the six months ended June 30, 1999, due primarily to revenue growth. The gross margin percentage increased to 61.5% for the six months ended June 30, 2000, compared to 58.3% for the six months ended June 30, 1999. The overall increase in the gross margin percentage is due primarily to the increase in gross margin for software and professional services due to the factors discussed above. Research and Development Expense. R&D expense for the six months ended June 30, 2000, increased 27.9% to $20.3 million, from $15.8 million for the six months ended June 30, 1999. As a percentage of total revenues, R&D expense increased to 10.8% for the six months ended June 30, 2000, from 10.7% for the six months ended June 30, 1999. The Company did not capitalize any software development costs during the six months ended June 30, 2000 and 1999. The overall increase in the R&D expenditures between periods is due primarily to increased efforts on several products which are in development and enhancements of the Company's existing products. The Company's development efforts for the six months ended June 30, 2000 were focused primarily on the development of products to: . increase the efficiencies and productivity of its clients' operations, . address the systems needed to support the convergence of the communications markets, . support a web-enabled, customer self-care and electronic bill presentment/payment application, . allow clients to effectively rollout new products and services to new and existing markets, such as residential telephony, High-Speed Data/ISP and IP markets (including CSG.net, the Company's ASP offering to the ISP market), and . address the international customer care and billing system market. Selling, General and Administrative Expense. SG&A expense for the six months ended June 30, 2000, decreased 5.1% to $21.2 million, from $22.3 million for the six months ended June 30, 1999. As a percentage of total revenues, SG&A expense decreased to 11.2% for the six months ended June 30, 2000, from 15.2% for the six months ended June 30, 1999. The decrease in SG&A expense relates primarily to the noncompete agreement from the CSG Acquisition becoming fully amortized as of November 30, 1999 (such amortization was $2.3 million for the six months ended June 30, 1999), offset by an increase in certain SG&A expenses related primarily to the continued expansion of the Company's management and administrative staff and other administrative costs to support the Company's overall growth. Depreciation Expense. Depreciation expense for the six months ended June 30, 2000, increased 17.7% to $5.8 million, from $4.9 million for the six months ended June 30, 1999. The increase in expense relates to capital expenditures made during 1999 and the first six months of 2000 in support of the overall growth of the Company, consisting principally of (i) computer hardware and related equipment, (ii) statement processing equipment, and (iii) facilities expansion. Depreciation expense for all property and equipment is reflected separately in the aggregate and is not included in the other components of operating expenses. Operating Income. Operating income for the six months ended June 30, 2000, was $68.4 million or 36.4% of total revenues, compared to $42.9 million or 29.1% of total revenues for the six months ended June 30, 1999. The increase between years relates to the factors discussed above. Interest Expense. Interest expense for the six months ended June 30, 2000, decreased 25.0% to $3.0 million, from $4.0 million for the six months ended June 30, 1999, with the decrease attributable primarily to (i) scheduled principal payments on the Company's long-term debt, and (ii) optional prepayments on long- term 13 debt during 1999. Interest Income. Interest income for the six months ended June 30, 2000, increased 79.7% to $2.6 million, from $1.5 million for the six months ended June 30, 1999, with the increase attributable primarily to an increase in operating funds available for investment. Income Tax Provision. For the six months ended June 30, 2000, the Company recorded an income tax provision of $25.7 million, or an effective income tax rate of approximately 38%, which represents the Company's estimate of the effective book income tax rate for 2000. The Company's effective income tax rate for 1999 was also approximately 38%. Financial Condition, Liquidity and Capital Resources - ---------------------------------------------------- As of June 30, 2000, the Company's principal sources of liquidity included cash and cash equivalents of $69.8 million. The Company also has a revolving credit facility in the amount of $40.0 million, of which there were no borrowings outstanding. The Company's ability to borrow under the revolving credit facility is subject to maintenance of certain levels of eligible receivables. At June 30, 2000, all of the $40.0 million revolving credit facility was available to the Company. The revolving credit facility expires in September 2002. As of June 30, 2000 and December 31, 1999, respectively, the Company had $84.7 million and $67.5 million in net billed trade accounts receivable. The increase between periods relates primarily to continued revenue growth and the timing of new billings and collections. The Company's billed trade accounts receivable balance includes billings for several non-revenue items, such as postage, communication lines, travel and entertainment reimbursements, sales tax, and deferred items. As a result, the Company evaluates its performance in collecting its accounts receivable through its calculation of days billings outstanding (DBO) rather than a typical days sales outstanding (DSO) calculation. DBO is calculated based on the billings for the period (including non-revenue items) divided by the average net billed trade accounts receivable balance for the period. The Company's DBO calculations for the quarters ended June 30, 2000 and 1999 were 53 days and 55 days, respectively. Total deferred revenues decreased by approximately $8.4 million from December 31, 1999 to June 30, 2000, due primarily to performance on several contracts during the first quarter that had previously been signed and billed in the latter part of 1999. The deferred revenue balance was relatively unchanged from March 31, 2000. During the six months ended June 30, 2000, the Company generated $37.9 million of net cash flow from operating activities. Cash generated from these sources and the proceeds of $9.1 million from the issuance of common stock through the Company's stock incentive plans were used to (i) fund capital expenditures of $11.5 million, (ii) repurchase 75,000 shares of the Company's Common Stock for $3.0 million under its stock repurchase plan, and (iii) repay long-term debt of $11.0 million, which included $10.0 million of scheduled payments and optional prepayments of $1.0 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the six months ended June 30, 2000 was $77.5 million, or 41.2% of total revenues, compared to $55.2 million, or 37.4% of total revenues for the six months ended June 30, 1999. EBITDA is presented here as a measure of the Company's debt service ability and is not intended to represent cash flows for the periods. Interest rates for the term and revolving credit facilities are chosen at the option of the Company and are based on the LIBOR rate or the prime rate, plus an additional spread, with the spread dependent upon the Company's leverage ratio. As of June 30, 2000, the spread on the LIBOR rate and the prime rate was 0.50% and 0%, respectively. As of June 30, 2000, the entire amount of the debt was under a one-month LIBOR contract with an interest rate of 7.18% (i.e., LIBOR at 6.68% plus spread of 0.50%), compared to a weighted average rate of 6.55% at December 31, 1999. In August 1999, the Company's Board of Directors approved a stock repurchase plan which authorized the 14 Company at its discretion to purchase up to a total of 5.0 million shares of its Common Stock from time to time as market and business conditions warrant. During the six months ended June 30, 2000, the Company repurchased 75,000 shares of Common Stock for approximately $3.0 million ($39.92 per share). The Company has purchased a total of 730,500 shares for approximately $23.2 million (a weighted- average price of $31.81 per share) since the program was announced. The repurchased shares are held as treasury shares. The Company continues to make significant investments in capital equipment, facilities, research and development, and at its discretion, may continue to make stock repurchases. The Company had no significant capital commitments as of June 30, 2000. The Company believes that cash generated from operations, together with the current cash and cash equivalents and the amount available under its current revolving credit facility will be sufficient to meet its anticipated cash requirements for operations, income taxes, debt service, capital expenditures, and stock repurchases for both its short and long-term purposes. The Company also believes it has significant unused borrowing capacity and could obtain additional cash resources by amending its current credit facility and/or establishing a new credit facility. Forward-Looking Statements - -------------------------- This report contains a number of forward-looking statements relative to future plans of the Company and its expectations concerning the customer care and billing industry, as well as the converging telecommunications industry it serves, and similar matters. Such forward-looking statements are based on assumptions about a number of important factors, and involve risks and uncertainties that could cause actual results to differ materially from estimates contained in the forward-looking statements. Some of the risks that are foreseen by management are contained in Exhibit 99.01 of this report. Exhibit 99.01 constitutes an integral part of this report, and readers are strongly encouraged to read that section closely in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations. AT&T Contract and Merger - ------------------------ AT&T completed its merger with Tele-Communications, Inc. (TCI) in March 1999 and has consolidated the TCI operations into AT&T Broadband. During the six months ended June 30, 2000 and 1999, revenues from AT&T and affiliated companies generated under the AT&T Contract represented approximately 45.3% and 43.0% of total revenues, respectively. The AT&T Contract had an original term of 15 years and expires in 2012. The AT&T Contract has minimum financial commitments over the term of the contract and includes exclusive rights to provide customer care and billing products and services for AT&T's offerings of wireline video, all Internet/high-speed data services, residential wireline telephony services, and print and mail services. The AT&T Contract contains certain performance criteria and other obligations to be met by the Company. The Company is required to perform certain remedial efforts and is subject to certain penalties if it fails to meet the performance criteria or other obligations. The Company is also subject to an annual technical audit to determine whether the Company's products and services include innovations in features and functions that have become standard in the wireline video industry. To date, the Company believes it has complied with the terms of the contract. AT&T began its efforts to provide convergent communications services in several United States cities during 1999 and is expected to continue these efforts in 2000. The Company is working closely with AT&T to provide customer care and billing services to customers in those cities. The Company expects to continue performing successfully under the AT&T Contract, and is hopeful that it can continue to sell products and services to AT&T that are in excess of the minimum financial commitments and exclusive rights included in the contract. 15 Quantitative and Qualitative Disclosures About Market Risk - ---------------------------------------------------------- There have been no material changes to the Company's market risks during the six months ended June 30, 2000. See the Company's 1999 10-K for additional discussion regarding the Company's market risks. 16 CSG SYSTEMS INTERNATIONAL, INC. PART II. OTHER INFORMATION Item 1-3. None. Item 4. Submission of Matters to a Vote of Security Holders. (a) The 2000 annual meeting (the "Annual Meeting") of stockholders of CSG Systems International, Inc. was held on May 19, 2000. (b) The following persons were elected as directors at the Annual Meeting: Class III (term expiring in 2003) --------------------------------- George F. Haddix Neal C. Hansen Frank V. Sica The following directors' term of office continued after the Annual Meeting: Janice I. Obuchowski John P. Pogge Rockwell A. Schnabel Royce J. Holland Bernard W. Reznicek (c) Votes were cast or withheld at the Annual Meeting as follows: (i) Election of directors: Director For Withheld ------------------ --- -------- George F. Haddix 44,164,276 222,539 Neal C. Hansen 44,164,196 222,619 Frank V. Sica 44,161,437 225,378 (ii) Increase the Stock Option Plan for Non-Employee Directors by 250,000 shares: For Against Abstain --- ------- ------- 26,686,267 17,611,194 89,354 Item 5. None. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits 10.40* Second Amended and Restated Services Agreement between First Data Technologies, Inc. and CSG Systems, Inc., dated April 1, 2000 10.44 CSG Systems International, Inc. Stock Option Plan for Non-Employee Directors 17 27.01 Financial Data Schedule (EDGAR Version only) 99.01 Safe Harbor for Forward-Looking Statements Under the Private Securities Litigation Reform Act of 1995- Certain Cautionary Statements and Risk Factors (b) Reports on Form 8-K None __________________ * Portions of the exhibit have been omitted pursuant to an application for confidential treatment, and the omitted portions have been filed separately with the Commission. 18 SIGNATURES - ---------- Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: August 14, 2000 CSG SYSTEMS INTERNATIONAL, INC. /s/ Neal C. Hansen -------------------------------------------- Neal C. Hansen Chairman and Chief Executive Officer (Principal Executive Officer) /s/ Greg A. Parker -------------------------------------------- Greg A. Parker Vice President and Chief Financial Officer (Principal Financial Officer) /s/ Randy R. Wiese -------------------------------------------- Randy R. Wiese Vice President and Controller (Principal Accounting Officer) 19 CSG SYSTEMS INTERNATIONAL, INC. INDEX TO EXHIBITS Exhibit Number Description - ------- ----------- 10.40* Second Amended and Restated Services Agreement between First Data Technologies, Inc. and CSG Systems, Inc., dated April 1, 2000 10.44 CSG Systems International, Inc. Stock Option Plan for Non-Employee Directors 27.01 Financial Data Schedule (EDGAR Version only) 99.01 Safe Harbor for Forward-Looking Statements Under the Private Securities Litigation Reform Act of 1995-Certain Cautionary Statements and Risk Factors __________________ * Portions of the exhibit have been omitted pursuant to an application for confidential treatment, and the omitted portions have been filed separately with the Commission. 20 EX-10.40 2 0002.txt SECOND AMENDED AND RESTATED SERVICES AGREEMENT Exhibit 10.40 Pages where confidential treatment has been requested are stamped "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission," and places where information has been redacted have been marked with (***). SECOND AMENDED AND RESTATED SERVICES AGREEMENT between FIRST DATA TECHNOLOGIES, INC. and CSG SYSTEMS, INC., formerly known as CABLE SERVICES GROUP, INC.
Table of Contents Page ----------------- ---- Section 1 Definitions................................................................. 1 Section 2 Provision of the FDT Services............................................... 5 2.1 FDT Services..................................................... 5 2.2 Platform; FDT Data Center Raised Floor.......................... 5 2.3 CSG-Vendor Software.............................................. 6 2.4 Maintenance of Current Vendor Supported Software Releases........ 6 2.5 Use of Other Software............................................ 6 2.6 Information and Reports.......................................... 7 2.7 Backup........................................................... 7 2.8 Security......................................................... 7 2.9 Operations Procedures............................................ 7 2.10 CSG Batch Job Targets............................................ 8 2.11 Disaster Recovery................................................ 8 2.12 Systems Software; Data Telecommunications........................ 8 2.13 Performance Criteria............................................. 8 2.14 Audit Rights..................................................... 9 2.15 Additional Services.............................................. 10 2.16 CSG Obligations and Responsibilities............................. 10 2.17 Relocation....................................................... 10 2.18 Access to FDT Data Center........................................ 10 2.19 Cooperation and Good Faith....................................... 10 2.20 Rights of Contemporaneous Negotiation............................ 11 Section 3 Payments for FDT Services................................................... 11 3.1 Fees and Charges................................................. 11 3.2 Taxes............................................................ 11 3.3 Invoice and Time of Payment...................................... 11 3.4 Interest......................................................... 12 Section 4 Relationship between the Parties............................................ 12 Section 5 Intellectual Property....................................................... 12 5.1 CSG Data......................................................... 12 5.2 CSG Proprietary Software......................................... 12 5.3 Development Software............................................. 12 5.4 CSG Client Development Software.................................. 13 5.5 Ownership of Information......................................... 13 5.6 FDT Software..................................................... 13 5.7 Injunctions...................................................... 13 Section 6 Liability and Indemnification............................................... 13 6.1 FDT's Indemnification............................................ 13
CONFIDENTIAL - DO NOT DISCLOSE i 6.2 CSG's Indemnification............................................ 14 6.3 Indemnification Procedures....................................... 14 6.4 Additional Matters concerning Application Software............... 15 6.5 Dispute Resolution............................................... 15 6.6 Litigation....................................................... 15 Section 7 Limitation of Liability..................................................... 16 7.1 Limitation on Amount of Damages.................................. 16 7.2 Unique Damages Payable by FDT to CSG............................. 16 7.3 Provision of FDT Services........................................ 16 7.4 Mitigation....................................................... 16 7.5 Limitation of Assertions......................................... 16 7.6 Express Allocation of Risks...................................... 17 Section 8 Standard of Care and Exclusion of Warranties................................ 17 Section 9 Exclusion of Damages........................................................ 17 Section 10 Confidentiality............................................................. 17 10.1 Confidential Information......................................... 17 10.2 No License or Other Rights....................................... 19 10.3 Publicity and Use of Certain Information......................... 19 10.4 Equitable Remedies............................................... 19 10.5 Privileged Data.................................................. 19 Section 11 Termination................................................................. 19 11.1 Termination for Cause............................................ 19 11.2 Termination for Failure to Meet Performance Criteria............. 19 11.3 Termination Due to Change of Control or Assignment............... 20 11.4 Termination Due to Certain Infringment Matters................... 20 11.5 Termination Assistance........................................... 21 11.6 Expiration Assistance............................................ 21 11.7 Access upon Expiration or Termination............................ 21 11.8 Rights Upon Expiration or Termination............................ 21 Section 12 Miscellaneous............................................................... 22 12.1 Notice........................................................... 22 12.2 Entire Agreement................................................. 22 12.3 Assignment: Transfer; Binding Agreement.......................... 22 12.4 Force Majeure.................................................... 23 12.5 Risk of Loss..................................................... 23 12.6 No Third-Party Beneficiaries..................................... 23 12.7 Severability..................................................... 23 12.8 Certain Construction Rules....................................... 24 12.9 Compliance With Laws............................................. 24
CONFIDENTIAL - DO NOT DISCLOSE ii 12.10 Counterparts..................................................... 24 12.11 Headings......................................................... 24 12.12 No Interpretation Against Drafter................................ 24 12.13 Waiver........................................................... 24 12.14 Consent.......................................................... 24 12.15 Governing Law.................................................... 24 12.16 Limitation of Representations and Warranties; Indemnification.... 24
Schedules Schedule 1.9 CSG Client Development Software Schedule 1.17 Development Software Schedule 1.21 Existing CSG Proprietary Software Schedule 1.25 FDT Services and FDT Current Service Charges Schedule 1.43 Platform Description Schedule 1.49 Systems Software Schedule 2.3 CSG Vendor Software Schedule 2.3A Form of CSG Vendor Software Letter Schedule 2.9 Operations Procedures Schedule 2.10 CSG Batch Job Targets Schedule 2.11 Disaster Recovery Plan Schedule 2.13 Performance Criteria Schedule 2.14 Confidentiality Agreement Schedule 2.16.1 Additional CSG Obligations Schedule 6.5 Dispute Resolution CONFIDENTIAL - DO NOT DISCLOSE iii THIS SECOND AMENDED AND RESTATED SERVICES AGREEMENT (the "Services Agreement") is entered into as of April 1, 2000, by and between First Data Technologies, Inc., a Delaware corporation, and CSG Systems, Inc. (formerly known as Cable Services Group, Inc.), a Delaware corporation. RECITALS A. FDT is presently engaged in the business of providing data processing services; B. CSG and FDT previously entered into a services agreement dated as of October 26, 1994, as amended by that certain First Amendment to Services Agreement between FDT and CSG executed December 8, 1995, and as further amended by that certain Second Amendment to Services Agreement between FDT and CSG executed January 30, 1996, and as further amended by that Third Amendment to Services Agreement between FDT and CSG executed November 25, 1996 (collectively, the "Original Agreement"); C. CSG and FDT previously entered into an Amended and Restated Services Agreement dated December 31, 1996, as amended by that certain First Amendment to Amended and Restated Services Agreement between CSG and FDT executed July 1998 (as amended, the "Restated Agreement"); D. CSG and FDT previously entered into those certain license agreements with FDT as licensor and CSG as licensee dated December 31, 1996 (as amended and restated as of the date hereof), April 23, 1999 and July 30, 1999. E. CSG and FDT desire to further amend and restate their obligations relating to the terms and conditions governing the data processing services which FDT will continue to provide to CSG. NOW, THEREFORE, in consideration of the premises and the mutual covenants, representations, warranties, conditions and agreements hereinafter expressed, the Parties hereto agree as follows: Section 1 Definitions In this Services Agreement, the following terms have the meanings specified or referred to in this Section 1 and shall be equally applicable to both the singular and plural forms. In this Agreement, the words "including", "include" and "includes" shall each be deemed to be followed by the term "without limitation". Any agreement or exhibit referred to herein shall mean such agreement or exhibit as amended, supplemented and modified from time to time to the extent permitted by the applicable provisions thereof and by this Services Agreement. References to any statute or regulation means such statute or regulation as amended at the time and includes any successor statute or regulation. Unless otherwise stated, references to recitals, articles, sections, paragraphs, schedules and exhibits shall be references to recitals, articles, sections, paragraphs, schedules and exhibits of this Services Agreement. 1.1 "Additional Services" has the meaning stated in Section 2.15. 1.2 "Affiliate" means an Entity which, directly or indirectly, owns or controls, is owned or is controlled by or is under common ownership or control with another Entity. As used herein, "control" means the power to direct the management or affairs of an Entity, and "ownership" means the beneficial CONFIDENTIAL - DO NOT DISCLOSE 1 ownership of 50% or more of the voting equity securities or other equivalent voting interests of the Entity. 1.3 "Applications Software" means the CSG-Vendor Software and the CSG Proprietary Software. 1.4 "Claim" has the meaning specified in Section 6.3.1. 1.5 "Confidential Information" has the meaning stated in Section 10.1. 1.6 "CSG" means CSG Systems, Inc. (formerly known as Cable Services Group, Inc.), a Delaware corporation, and its permitted successors and permitted assigns. 1.7 "CSG Batch Job Targets" means the time periods identified on Schedule 2.10 relating to CSG's batch cycles. 1.8 "CSG Client" shall mean any current or future Entity for which CSG provides data processing services through FDT in accordance with the terms and conditions of the Services Agreement. 1.9 "CSG Client Development Software" means that portion of the Development Software set forth on Schedule 1.9 that CSG Clients may execute and use at the CSG Clients' Locations solely to permit a CSG Client to receive the benefit of the FDT Services in accordance with the terms and conditions of this Services Agreement. 1.10 "CSG's Clients' Locations" means each of CSG's Clients' business locations which are connected to the Platform to permit a CSG Client to receive the benefit of the FDT Services in accordance with the terms and conditions of this Services Agreement. 1.11 "CSG Data" has the meaning specified in Section 5.1. 1.12 "CSG Proprietary Software" means New CSG Proprietary Software and Existing CSG Proprietary Software. 1.13 "CSG-Vendor Software" means the Software licensed to CSG by third party vendors (excluding FDT and its Affiliates) and to be used by FDT to provide the FDT Services, together with all developments, improvements, modifications, additions, expansions, new versions, new releases, rewrites, enhancements, upgrades or other changes of any kind thereto. The CSG-Vendor Software is set forth in Schedule 2.3, as it may be amended from time-to-time. 1.14 "Damaged Party" has the meaning stated in Section 12.5. 1.15 "Data Processing Materials" has the meaning stated in Section 5.5. 1.16 "Declared Disaster" has the meaning stated in Schedule 2.11. 1.17 "Development Software" means that portion of the Systems Software as set forth in Schedule 1.17 that CSG may execute and use for development of CSG Proprietary Software. Such schedule may be amended from time to time in accordance with the procedures set forth in Section 2.5.3, if applicable. 1.18 "Dispute" means any and all disputes, controversies and claims between the Parties arising from or in connection with this Services Agreement or the relationship of the Parties under this CONFIDENTIAL - DO NOT DISCLOSE 2 Services Agreement whether based on contract, tort, common law, equity, statute, regulation, order or otherwise. 1.19 "Effective Date" shall mean April 1, 2000. 1.20 "Entity" means an individual, corporation, limited liability company, partnership, sole proprietorship, joint venture, or other form of organization or governmental agency or authority. 1.21 "Existing CSG Proprietary Software" means the applications, job control language and system and other Software owned by CSG and to be used by FDT to provide the FDT Services, that is identified in Schedule 1.21. 1.22 "Failed Criteria" shall have the meaning stated in Section 11.2. 1.23 "FDT" means First Data Technologies, Inc., a Delaware corporation, and its permitted successors and permitted assigns. 1.24 "FDT Data Center" means the data center maintained by or on behalf of FDT in Englewood, Colorado or any other data or information processing centers maintained by or on behalf of FDT or any of its Affiliates and used to provide the FDT Services. 1.25 "FDT Service Charges" means the fees charged by FDT for the FDT Services as set forth in Schedule 1.25. 1.26 "FDT Services" means the data processing services and systems currently provided by FDT to CSG which are set forth on Schedule 1.25 and those Additional Services that FDT agrees to provide. 1.27 "FDT Software" means that certain FDT proprietary Software licensed by FDT to CSG pursuant to the License Agreements. 1.28 "Indemnified Party" means a Party or Parties seeking or entitled to indemnification pursuant to the provisions of Section 6. 1.29 "Indemnifying Party" means the Party or Parties hereto responsible for indemnifying an Indemnified Party pursuant to Section 6. 1.30 "Infringement Claims" has the meaning stated in Section 6.2.1. 1.31 "Infringement Payment" has the meaning stated in Section 11.4. 1.32 "License Agreements" means those certain license agreements executed by FDT and CSG with FDT as licensor and CSG as licensee dated December 31, 1996 (as subsequently amended and restated as of the date hereof), April 23, 1999 and July 30, 1999. 1.33 "Losses and Expenses" has the meaning stated in Section 7.1. 1.34 "New CSG Proprietary Software" means all developments, improvements, modifications, additions, expansions, new versions, new releases, rewrites, enhancements, upgrades or other changes of any kind to Existing CSG Proprietary Software, or any new Software owned or developed by CSG following the Effective Date and provided to FDT for use in connection with the provision of the FDT Services that is not identified in Schedule 1.21. CONFIDENTIAL - DO NOT DISCLOSE 3 1.35 "Operations Procedures" has the meaning stated in Section 2.9. 1.36 "Original Agreement" has the meaning specified in the second recital to this Services Agreement. 1.37 "Original CSG Proprietary Software" means that portion of the Existing CSG Proprietary Software that existed as of the effective date of the Original Agreement. 1.38 "Original Term" means the period of time commencing on the Effective Date and ending June 30, 2005. 1.39 "Other Party" has the meaning stated in Section 12.5. 1.40 "Party" means a party to this Services Agreement and its permitted successors and permitted assigns. 1.41 "Performance Criteria" has the meaning stated in Section 2.13. 1.42 "Plan" has the meaning stated in Schedule 2.11. 1.43 "Platform" means the hardware owned or operated by FDT and the network provided by FDT for data telecommunications and data processing and retrieval established between the FDT Data Center, CSG, and CSG's Clients' Locations, it being understood that such Platform is provided by FDT on a non- exclusive basis. The Platform is further described in Schedule 1.43. 1.44 "Principal Performance Criteria" means Performance Criteria categories 1, 2, 3 and 4, and Performance Criteria category 5 solely as it relates to the front end processors. 1.45 "Restated Agreement" has the meaning specified in the third recital to this Agreement. 1.46 "Services Agreement" means this Second Amended and Restated Services Agreement between CSG and FDT as it may be amended from time to time. 1.47 "Software" means (i) computer programs, including application programs, operating programs, file programs and utility programs, and (ii) tangible media upon which such programs and documentation are recorded, including hard copy, tapes and disks. 1.48 "Stock Purchase Agreement" means that agreement entered into as of October 26, 1994 between CSG Holdings, Inc. and First Data Resources Inc. 1.49 "Systems Software" means the Software licensed by FDT to be used to provide FDT Services, but shall not include the FDT Software or the Applications Software. The current set of Systems Software is set forth in Schedule 1.49. Such schedule may be amended from time to time in accordance with the procedures set forth in Section 2.5.3. 1.50 "Term" means the Original Term and any mutually agreed extension thereto. 1.51 "Termination Assistance" has the meaning stated in Section 11.5. 1.52 "Third Party Provider" has the meaning stated in Section 2.12. CONFIDENTIAL - DO NOT DISCLOSE 4 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." Section 2 Provision of the FDT Services 2.1 FDT Services. FDT shall make available to and perform for CSG and CSG shall use the FDT Services during the Term. Notwithstanding the foregoing, if CSG delivers notification to FDT pursuant to Sections 11.1 or 11.2 that CSG is terminating this Services Agreement, then after such notification CSG may arrange for CSG or a third party to provide the FDT Services for CSG after the termination date and CSG may take all actions in preparation therefor as may be reasonably necessary to enable CSG or such third party to provide such FDT Services immediately after the termination date; provided however, the foregoing shall not be construed to prevent CSG from initiating preliminary discussions with any such third party prior to giving written notice to FDT. 2.2 Platform; FDT Data Center Raised Floor. 2.2.1 Platform. FDT will provide the Platform and shall have all rights in connection therewith including the right to change the configuration of the Platform during the Term of this Services Agreement. FDT shall provide CSG with at least thirty (30) days advance written notice of any change in the Platform. Such changes shall not materially adversely affect the operations of CSG or CSG Clients. Except for those components (if any) identified on Schedule 1.43 as being owned by CSG, the Platform shall remain solely the property of FDT, its lessors or providers, if any, and CSG shall have no ownership interests or other rights therein. CSG may request changes to the Platform, and all such requests shall be deemed a request for Additional Services and be subject to Section 2.15. FDT shall provide upgraded DASD and tape subsystems relating to the Platform in accordance with the DASD and tape subsystems upgrade practices used by FDT from time to time. 2.2.2 FDT Data Center Raised Floor. CSG shall have the right, subject to security, space, environmental and other limitations, to collocate computer, telecommunications and other equipment at the FDT Data Center and to interconnect such equipment to the FDT Platform; provided that CSG will at no time during the Term (except as set forth in Section 2.2.3), require more than 1,200 non-contiguous square feet of raised floor space in the FDT Data Center for those purposes. FDT shall provide for utilities, HVAC, back-up power generators, and security with respect to such collocated equipment. CSG and third party support personnel retained by CSG or the CSG Client shall have reasonable access to the FDT Data Center on a 24 hour per day, 7 day a week basis to maintain and service such collocated equipment. 2.2.3 Additional FDT Data Center Raised Floor. After the Effective Date, and upon sixty (60) days prior written notice to FDT, CSG shall also have the right, subject to security, space, environmental and other limitations, to collocate additional computer, telecommunications and other equipment at the FDT Data Center and to interconnect such equipment to the FDT Platform; provided that CSG will at no time during the Term of this Services Agreement require more than an additional 1,200 non-contiguous square feet of raised floor space (for a total of 2,400 square feet) in the FDT Data Center for those purposes, it being understood that such additional non-contiguous space will be provided by FDT to CSG for $(***) (annually) per square foot. FDT shall provide for utilities, HVAC, back-up power generators, and security with respect to such collocated equipment. CSG and third party support personnel retained by CSG or the CSG Client shall have reasonable access to the FDT Data Center on a 24 hour per day, 7 day a week basis to maintain and service such collocated equipment. In addition, CSG may locate CONFIDENTIAL - DO NOT DISCLOSE 5 one of its employees at the FDT Data Center on a continuous basis, provided that such employee: (i) provides FDT evidence of his or her C2 security clearance and maintains such clearance during the Term; and (ii) executes a separate confidentiality agreement with FDT reasonably acceptable to CSG. 2.3 CSG-Vendor Software. CSG will secure for FDT, at CSG's expense, the rights to access, operate (at or from any location where FDT will provide the FDT Services), and modify the Vertex Software included within CSG-Vendor Software to the extent required for FDT's provision of the FDT Services under this Services Agreement. To the extent necessary, CSG will secure for FDT, at CSG's expense, a license for the other Software included within the CSG-Vendor Software. Such license shall provide for the rights set forth in the first sentence of this Section 2.3, including upgrades to such Software and maintenance therefor. Notwithstanding anything to the contrary set forth in this Services Agreement, FDT shall be under no obligation to install any CSG-Vendor Software until CSG provides FDT with evidence reasonably satisfactory to FDT of FDT's right to access, operate (at or from any location where FDT will provide the FDT Services), and modify the CSG-Vendor Software to provide the FDT Services pursuant to this Services Agreement. Contemporaneously with the execution of this Services Agreement, CSG shall deliver to FDT a letter executed by CSG substantially in the form set forth in Schedule 2.3A. 2.4 Maintenance of Current Vendor Supported Software Releases. As of the Effective Date, all CSG-Vendor Software is the most current release (or one generation behind the most current release). During the Term, CSG shall cause all CSG-Vendor Software to be the most current release (or one generation behind the most current release) within one (1) year of the commercial release of the next version of any CSG-Vendor Software. As of the Effective Date, all Systems Software is the most current release (or one generation behind the most current release). During the Term, FDT shall cause all Systems Software to be the most current release (or one generation behind the most current release) within one (1) year following the commercial release of the next version of any Systems Software. CSG shall, at its sole cost and expense, upon the reasonable request of FDT, cooperate with FDT in testing the implementation of all CSG-Vendor Software and Systems Software. The Parties agree to use commercially reasonable efforts to coordinate the timing and installation of new releases of CSG-Vendor Software and Systems Software so as to not unreasonably disrupt or materially adversely affect the provision of FDT Services. 2.5 Use of Other Software. 2.5.1 FDT Affiliate Software. The Parties shall investigate from time to time the possibility of using Software developed by FDT Affiliates (such as that Software commonly known as "Tape Access Method"), to augment the CSG-Vendor Software. If such investigation results in the Parties determining that the use of such Software is desirable, the Parties shall negotiate the terms and conditions (including costs) associated with such use. 2.5.2 Third Party Software. If CSG requires FDT to acquire additional Software for use by FDT in the provision of FDT Services, FDT shall use commercially reasonable efforts to identify other FDT clients with whom CSG can share the costs associated with such Software, it being understood that if no other FDT clients use such Software, the costs associated with such Software shall be the sole responsibility of CSG. 2.5.3 Systems Software. (i) FDT may substitute some or all of the Systems Software with other Software, provided that: (a) FDT provides CSG with reasonable notice of such CONFIDENTIAL - DO NOT DISCLOSE 6 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." substitution, and CSG consents to such substitution, which consent shall not be unreasonably withheld or delayed; (b) such Software is substantially similar in functionality with the Systems Software that it is replacing; and (c) FDT obtains CSG rights to use such Software in accordance with Section 5.3, if applicable. Notwithstanding the foregoing, FDT shall not be required to obtain CSG's consent for substitutions made in accordance with Section 2.4. (ii) If FDT substitutes some or all of the Systems Software with other Software, FDT shall reimburse CSG for each applicable component of the Systems Software the reasonable out-of-pocket costs CSG incurs in modifying any CSG Proprietary Software and CSG-Vendor Software as a result of such substitution, together with associated training costs relating to the substituted Systems Software that exceed **** ******** dollars ($***), it being understood that in no event shall FDT be responsible for costs incurred by CSG that: (a) exceed personnel costs greater than ******* dollars ($***) per hour; or (b) are incurred as a result of FDT complying with its obligations set forth in Section 2.4. CSG shall provide FDT with a detailed itemization of its costs within twenty (20) days after completion of FDT's substitution of the applicable Systems Software. 2.6 Information and Reports. In accordance with the Performance Criteria, FDT will provide to CSG the output information or such other reports as the Parties may mutually agree, provided, however, that FDT's obligations for output or reports are specifically conditioned upon receipt of timely input received from CSG and CSG's Clients. 2.7 Backup. Pursuant to written instructions from CSG, FDT will back-up and maintain copies of the CSG Data, the Applications Software and FDT Software on magnetic or other media in accordance with FDT's standard procedures. In connection with such backup, FDT, in accordance with the fees set forth in Schedule 1.25, will arrange for off-site storage for CSG Data, as well as periodic pick-up and delivery to the off-site storage site. CSG will be solely responsible for CSG Data that CSG recalls from the off-site storage site to the FDT Data Center before it is scheduled to be returned from the off-site storage site. 2.8 Security. FDT .will implement and maintain reasonable security procedures relating to CSG's access to the Development Software, and access to the corresponding data of CSG Clients, including administering the procedures relating to the assignment and administration of all log-on identification numbers, and CSG shall be responsible for taking appropriate security measures relating to log-on identification numbers, passwords and access. FDT has provided CSG with a description of security procedures currently used by FDT, and FDT will provide reasonable prior written notice of any material changes in such procedures. From time to time, CSG will notify FDT which employees of CSG are to be granted access to the Development Software and CSG Data and the authorized level of such access, all in accordance with FDT's standard procedures. 2.9 Operations Procedures. CSG and FDT shall each use commercially reasonable efforts to comply with the Operations Procedures set forth on Schedule 2.9 (the "Operations Procedures") in order for FDT to provide the FDT Services; provided, however, that if CSG is unable to give any notice specified on Schedule 2.9 within the required time frame, FDT will use commercially reasonable efforts to accommodate the time frame requested by CSG (provided FDT shall be under no obligation to incur additional costs to accommodate such time frame or be responsible for the adverse impact on the CONFIDENTIAL - DO NOT DISCLOSE 7 Performance Criteria). The Operations Procedures may from time to time be changed by FDT so long as the changes do not materially (a) increase the duties of CSG or its obligations hereunder, or (b) adversely affect the business operations of CSG or CSG Clients. To the extent practicable, FDT agrees to give CSG reasonable advance written notice of such changes, except for changes which are implemented in short time frames for which no such notice can be given, such as changes necessary to correct situations in the FDT Data Center requiring immediate attention. FDT further agrees to use commercially reasonable efforts to minimize changes that will materially adversely affect CSG or CSG Clients, all of which requires CSG's prior written consent, which consent shall not be unreasonably withheld or delayed. THE OPERATING PROCEDURES ARE DEMARCATIONS OF RESPONSIBILITIES AND PROCEDURES THAT CSG AND FDT WILL EACH USE COMMERCIALLY REASONABLE EFFORTS TO ACHIEVE AND PERFORM, IT BEING UNDERSTOOD THAT NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH IN THIS SERVICES AGREEMENT: (i) THE OPERATING PROCEDURES MAY NOT BE ACHIEVED OR PERFORMED; AND (ii) THE FAILURE BY FDT OR CSG TO ACHIEVE OR PERFORM ANY OPERATIONS PROCEDURE SHALL NOT BE DEEMED TO BE A BREACH OF THIS SERVICES AGREEMENT. 2.10 CSG Batch Job Targets. The CSG Batch Job Targets set forth in Schedule 2.10 are targets that CSG and FDT will each use commercially reasonable efforts to achieve, IT BEING UNDERSTOOD THAT NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH IN THIS SERVICES AGREEMENT: (a) THE CSG BATCH JOB TARGETS MAY NOT BE ACHIEVED; AND (b) THE FAILURE BY FDT OR CSG TO ACHIEVE THE CSG BATCH JOB TARGETS SHALL NOT BE DEEMED TO BE A BREACH OF THIS SERVICES AGREEMENT. 2.11 Disaster Recovery. In the event of a Declared Disaster affecting the CSG Data, FDT will use commercially reasonable efforts to recover the critical components of the Systems Software and the FDT managed networks in accordance with the Plan. As compensation for any services provided by FDT in maintaining and implementing the Plan, CSG agrees to pay FDT the associated fees and charges for such FDT Services set forth in Schedule 1.25 and Schedule 2.11, as applicable. FDT shall be solely responsible for restoring the Applications Software and the FDT Software. CSG shall be solely responsible for recovering the Applications Software and the FDT Software, and for directing FDT in regard to the CSG Data in accordance with Section 2.7. 2.12 Systems Software; Data Telecommunications. FDT may procure from one or more qualified subcontractors or third party vendors (the "Third Party Providers") the data telecommunications services and Systems Software used to provide FDT Services, except to the extent that CSG has previously contracted for such services directly. FDT also will be responsible for obtaining from any such Third Party Providers the appropriate maintenance for data telecommunications and hardware equipment. CSG agrees to pay FDT the applicable FDT Service Charge. Annually during the Term, the Parties will review the quality of service and pricing offered by the Third Party Providers. Following the annual review, FDT will take such action that the Parties mutually determine appropriate, which may include renegotiation with current Third Party Providers or termination of existing service or license agreements and negotiation with new Third Party Providers. FDT shall keep CSG apprised of negotiations with Third Party Providers. The Parties acknowledge that each of the Parties share certain connections to a network commonly known as the AT&T Global Network Services network. Notwithstanding anything to the contrary set forth in this Services Agreement, each Party shall pay their respective usage fees however designated for their respective use of the AT&T Global Network Services network. 2.13 Performance Criteria. CONFIDENTIAL - DO NOT DISCLOSE 8 2.13.1 Performance Criteria. FDT shall use commercially reasonable efforts to provide and to perform the FDT Services in all material respects in accordance with each of the performance criteria set forth in Schedule 2.13 (the "Performance Criteria"). Without limiting the foregoing, any request by CSG for a new or additional Performance Criteria shall be deemed a request for Additional Services in accordance with Section 2.15. 2.13.2 Exclusions. There shall be excluded from the measurement of compliance with any Performance Criteria and the application of Section 7.2, any failure to meet such Performance Criteria if, during, and to the extent that such failure is related to (i) any matter constituting force majeure, as provided in Section 12.4; (ii) any material failure by CSG to perform its obligations under this Services Agreement (including those set forth in the Operations Procedures), or where CSG's approval, acceptance, consent or similar action is required under this Services Agreement, any unreasonable delay or any withholding of action; (iii) the performance, nonperformance or continuing provision by CSG of any Applications Software or FDT Software; (iv) the performance or nonperformance of any CSG vendor; (v) ad hoc reporting jobs, special production jobs, testing procedures or other services that are given priority at the request of CSG; (vi) any significant change in the manner in which CSG conducts its business or operations adversely affecting FDT's ability to meet any Performance Criteria; (vii) any failure of CSG or CSG Clients to provide CSG Data in the time deemed reasonably necessary by FDT to meet an output delivery schedule; (viii) any failure of CSG to provide the evidence reasonably requested by FDT in accordance with Section 2.3; or (ix) the operation of Section 5.7. 2.14 Audit Rights. 2.14.1 CSG Audits. Upon the request and reasonable advance written notice of CSG, FDT will provide to CSG, its auditors and regulators, if any, and to CSG Clients in accordance with their agreements with CSG (as directed by CSG and subject to the need for confidentiality obligations from them as set forth below) access during regular business hours to the appropriate management personnel of FDT, and to CSG Data and records of CSG directly relating to the FDT Services. Such access shall be limited to performing audits of FDT and its business, to verify the accuracy of the fees and charges for the FDT Services, and FDT's compliance with the Performance Criteria. Such requests for access shall not be made more frequently than once a year, with the exception of requests to provide access to CSG's regulators. FDT will provide to such auditors and regulators any assistance of a routine nature that they reasonably require. To the extent that FDT's assistance in such audits exceeds more than sixty (60) man hours of FDT time in any calendar year, CSG shall reimburse FDT for such assistance in excess of sixty (60) hours at FDT's then-current commercial rates. CSG and the third party auditors and regulators must comply with all reasonable security and confidentiality procedures (including the execution of nondisclosure agreements), established by FDT at any facility to which access is granted, and audits shall not unreasonably interfere with FDT's normal business operations. CSG shall use commercially reasonable efforts to cause non-CSG third party auditors and regulators to provide FDT in advance with a draft copy of each written report or other output containing comments concerning FDT or the FDT Services and an opportunity to reply to comments that will be made in the final report. 2.14.2 FDT Audits. From time to time during the Term, FDT will allow a third party, selected by FDT, to perform an audit of the electronic data processing environment maintained by FDT to provide the FDT Services contemplated under this Services Agreement. Upon request, FDT shall provide CSG with a copy of the results of the audit. CSG may provide a copy of the audit to its clients who have specifically agreed to hold the audit confidential in conformance with an agreement in the form of or conforming to Schedule 2.14. CONFIDENTIAL - DO NOT DISCLOSE 9 2.14.3 Systems Software Vendor Audits. From time to time during the Term, CSG shall cooperate with FDT and its Systems Software vendors in connection with such vendors audit of CSG's use of the Development Software and CSG Clients' use of the CSG Client Development Software pursuant to this Services Agreement, provided that such vendors agree in writing to maintain the confidentiality of all CSG Confidential Information. 2.15 Additional Services. If CSG requests FDT to provide any services that are different from, or in addition to, the FDT Services ("Additional Services"), the Parties will cooperate with each other in good faith in discussing the scope and nature of the request, the Additional Services so requested, the related performance criteria, the impact (if any) on existing Performance Criteria, the time period in which FDT would provide such Additional Services and the basis upon which FDT would be compensated and reimbursed therefor, it being understood that such compensation and reimbursement for Additional Services shall be consistent with the pricing methodology used for the FDT Service Charges, but only include costs associated with the FDT Data Center (as opposed to indirect costs of FDT). If the Parties agree upon the scope and nature of the Additional Services and FDT's compensation therefor, the Parties shall amend this Services Agreement accordingly and such Additional Services shall become a part of the FDT Services. 2.16 CSG Obligations and Responsibilities. 2.16.1 CSG Obligations. CSG shall have and perform the obligations including, those identified in Schedule 2.16.1. 2.16.2 Data Responsibility. CSG shall have responsibility for the supervision, management and control of its use of the CSG Data, reports and the like, including implementing sufficient procedures to satisfy its internal security and accuracy requirements for information FDT furnishes. 2.17 Relocation. 2.17.1 Movement of FDT Data Center. If FDT relocates the FDT Data Center, FDT shall reimburse CSG for (a) any conversion cost incurred, directly or indirectly, by CSG as a result of such relocation and (b) any increase in the ongoing expenses of CSG as a result of such relocation during the Original Term. 2.17.2 Movement of CSG. If CSG relocates its principal place of business from Omaha, Nebraska, CSG shall reimburse FDT for (a) any conversion costs incurred, directly or indirectly, by FDT as a result of such relocation and (b) any increase in the ongoing expenses of FDT as a result of such relocation during the Original Term. 2.18 Access to FDT Data Center. During the Term, FDT will permit CSG and CSG Clients, on reasonable written notice and subject to FDT's standard security procedures, to have access to the FDT Data Center during normal business hours for the purpose of giving tours of such FDT Data Center to CSG Clients and prospective clients of CSG. Such tours shall be conducted by an employee or representative of FDT and the extent of such tours shall be determined by FDT in its sole discretion, provided that such tours provide such CSG Clients and prospective clients of CSG with a reasonable understanding of the FDT Data Center standard practices and procedures. Employees and representatives of FDT conducting such tours shall do so in a professional manner. 2.19 Cooperation and Good Faith. Each Party shall cooperate with the other to establish priorities for the FDT Services and any Additional Services to be provided to CSG. Each Party will also CONFIDENTIAL - DO NOT DISCLOSE 10 cooperate with the other by, among other things, making available and not withholding or delaying, as reasonably requested by the other, such management decisions and approvals as may be necessary to fulfill each Party's respective obligations to the other under this Services Agreement in a timely and efficient manner. All negotiations, including, negotiations for Additional Services, between the Parties shall be conducted in good faith in accordance with reasonable commercial business practices. FDT will provide reasonable assistance to CSG in CSG's efforts to develop new business, data conversion and deconversion activities. Each Party shall designate a person to represent the Party and coordinate its activities in connection with this Services Agreement. 2.20 Rights of Contemporaneous Negotiation. Contemporaneously with soliciting (or responding to an offer by) a third party to perform any other data processing or data telecommunications services similar to any of the FDT Services or a replacement for any of the FDT Services, CSG shall offer FDT the opportunity to provide such services on mutually acceptable terms. The Parties each agree that they will act in good faith and without undue delay as they participate in discussions on the terms pursuant to which FDT will provide such services to CSG; provided however, nothing in this Services Agreement shall obligate either Party necessarily to reach an agreement with the other with respect to such services. It is expressly agreed that (notwithstanding this Services Agreement, or any past or future discussions or other communications between them) neither Party will have any liability or obligation whatsoever to the other with respect to the provision of such services unless and until negotiations between them are completed and they have in fact entered into comprehensive, mutually-binding written agreement which covers all matters agreed to and which is signed by each Party's authorized officers. It is agreed that either Party may terminate such discussions on written notice to the other Party, without incurring any liability therefor. Section 3 Payments for FDT Services 3.1 Fees and Charges. The FDT Service Charges as of the Effective Date are set forth in Schedule 1.25. FDT's obligations and CSG's rights under this Services Agreement are conditional upon CSG's payment of the fees and charges in accordance with the terms and conditions of this Services Agreement. 3.2 Taxes. CSG shall be responsible for any sales, use, excise, value- added and other taxes and duties payable by FDT or CSG on the FDT Services as a whole or on a particular good or service received by CSG from FDT in connection with the FDT Services where the tax is imposed on CSG's acquisition or use of such FDT Services or such other goods or services from FDT, and not by FDT's cost in acquiring the FDT Services or such other goods or services. FDT shall be solely responsible for payment of the taxes, if any, on FDT's income from the FDT Services, and FDT corporate occupation taxes, if any. The Parties will use commercially reasonable efforts to cooperate with each other to enable each other to determine accurately each Party's tax liability and to minimize such liability to the extent legally permissible. Each Party shall provide and make available to the other any resale certificates, information regarding out-of- state or out-of-country sales or use of equipment, materials or services, and other exemption certificates or information reasonably requested by either Party. 3.3 Invoice and Time of Payment. FDT will invoice CSG on or before the fifth (5th) business day of each month for any amount owed to FDT pursuant to this Services Agreement for the immediately preceding month. Each such invoice will be due and payable within thirty (30) days after receipt of the invoice. Notwithstanding the foregoing, if CSG should dispute the accuracy of all or any portion of an amount indicated on any invoice, CSG shall timely pay the undisputed portion of such invoice and notify FDT's accounts receivable department in writing of the nature of the disputed amount at the time of payment. The Parties shall attempt in good faith to mutually resolve such dispute; provided CONFIDENTIAL - DO NOT DISCLOSE 11 however, if the dispute is not resolved within forty-five (45) days from FDT's receipt of such written notice, either Party shall have the right to have such dispute resolved pursuant to the terms of Section 6.5. 3.4 Interest. If FDT does not receive, or is unable to obtain, payment of any amount due or payable to FDT under this Services Agreement at the time provided for payment under this Services Agreement, such unpaid amount shall bear interest at a rate equal to one percent (1%) over the prime rate as published in the Wall Street Journal, from the date on which payment was due until the date on which FDT receives such payment. Section 4 Relationship between the Parties Nothing contained in this Services Agreement shall be deemed to constitute a partnership or joint venture between the Parties. Neither Party shall hold itself out as having any authority to enter into any contract or create any obligation or liability on behalf of, in the name of, or binding upon the other Party, nor shall anything contained in this Services Agreement be deemed to create or imply a fiduciary relationship between the Parties. Section 5 Intellectual Property 5.1 CSG Data. Any data regarding the operations of CSG or any data regarding CSG's Clients provided by CSG to FDT pursuant to this Services Agreement shall remain the property of CSG or CSG Clients (collectively, "CSG Data"). CSG authorizes FDT to access and make use of the CSG Data for FDT's performance of its obligations under this Services Agreement. Upon the termination or expiration of this Services Agreement for any reason, FDT shall promptly return CSG Data in the form such data is maintained by FDT in connection with the performance of the FDT Services or, if CSG so elects in writing, destroy it. FDT shall not use the CSG Data for any purpose except as contemplated by this Services Agreement, nor shall any part of such data be disclosed or sold by FDT to third parties or commercially exploited by FDT other than CSG Data that is required to be disclosed: (i) in order to perform the FDT Services; (ii) to complete any permitted third-party audits; or (iii) pursuant to Section 10.1.2(vi) or Section 10.1.2(vii). Notwithstanding the foregoing, FDT shall have the right without CSG's approval, to compile and distribute aggregate and statistical analyses and reports using CSG Data, information, and other sources, provided that such analyses and reports do not identify CSG, CSG Clients or CSG's industry, and provided further that such analyses and reports are not sold to third parties. 5.2 CSG Proprietary Software. CSG hereby grants FDT a non-exclusive, royalty-free license for the Term to execute the CSG Proprietary Software in connection with the performance of the FDT Services and to access, modify and review the CSG Proprietary Software for problem resolution and performance recommendations. Except as may be necessary for the accomplishment of the activities authorized in the immediately preceding sentence, FDT shall not modify, reverse engineer, decompile, disassemble, create derivative works or otherwise discover any process or technique inherent in the CSG Proprietary Software or any portion thereof. As between the Parties, the CSG Proprietary Software will remain CSG's property. FDT will have no ownership interests or other rights in the CSG Proprietary Software. 5.3 Development Software. FDT has obtained or will obtain for CSG for the Term the right to execute and use the Development Software at CSG's principal place of business for the sole purpose of developing, modifying, and enhancing the CSG Proprietary Software. CSG shall comply with the terms of the licenses and use restrictions for the Development Software. In addition to the foregoing, CSG shall CONFIDENTIAL - DO NOT DISCLOSE 12 not modify, reverse engineer, reverse assemble or decompile the Development Software, nor shall CSG permit any other Entity to do so. 5.4 CSG Client Development Software. FDT has obtained or will obtain for CSG Clients for the Term the right to execute and use the CSG Client Development Software at CSG Clients' Locations solely to permit a CSG Client to receive the benefit of the FDT Services in accordance with the terms and conditions of this Services Agreement. CSG shall ensure that the CSG Clients comply with the terms of the licenses and use restrictions for the CSG Client Development Software. In addition to the foregoing, CSG shall not permit any CSG Client to modify, reverse engineer, reverse assemble or decompile the CSG Client Development Software, nor shall any CSG Client permit any other Entity to do so. 5.5 Ownership of Information. All Software, Operating Procedures, manuals, and other documentation and similar data processing materials and derivative works based thereon ("Data Processing Materials") developed or owned by a Party are and, unless specifically transferred to the other, shall remain the property of such Party and shall be Confidential Information. Any Operating Procedures, manuals, or other documentation included within Confidential Information that is required for CSG Clients to use the services of CSG may be provided to CSG Clients, provided appropriate confidentiality agreements are executed to protect such Confidential Information. 5.6 FDT Software. Prior to or contemporaneously with the execution of this Services Agreement, the Parties shall enter into an amended and restated agreement relating to that certain software commonly known as "Team 35." The Parties acknowledge and agree that CSG has the sole obligation to maintain, update, modify and enhance the FDT Software. 5.7 Injunctions. If any third party Infringement Claim or any injunction is issued with respect to any portion of a product, service or any Software which is used to provide the FDT Services, FDT will use commercially reasonable effort to modify or replace the product, service or Software if the Infringement Claim or injunction arises out of or relates to the Platform, the Systems Software or any portion thereof, and CSG will use commercially reasonable efforts to modify or replace the Applications Software or FDT Software or any portion thereof if the Infringement Claim or injunction arises out of or relates to the Applications Software or FDT Software, in either event in order to avoid the Infringement Claim or injunction. If FDT or CSG, as applicable, is unable to replace the product, service or Software with commercially reasonable efforts and/or at commercially reasonable prices, FDT shall no longer be responsible for providing the affected portion of the FDT Services. Section 6 Liability and Indemnification 6.1 FDT's Indemnification. FDT shall hold harmless and indemnify CSG, its Affiliates and their respective directors, officers, employees and agents from and against any and all claims, liabilities, losses or damages (including reasonable attorneys fees, expert witness fees, expenses and costs of settlement) resulting from or arising out of: 6.1.1 the death or bodily injury of any agent, employee, customer, client, business invitee or business visitor of FDT except to the extent, if any, that such death or bodily injury shall have been caused by the gross negligence or reckless or intentional conduct of CSG; provided, however, that for purposes of this Section 6.1.1, the agents, employees, customers, CSG Clients, business invitees and business visitors of CSG shall not, when on the premises of FDT, be deemed FDT's business invitee or business visitor; CONFIDENTIAL - DO NOT DISCLOSE 13 6.1.2 any payment obligations of FDT to a third party relating to the Systems Software or Platform; and 6.1.3 any misappropriation or misuse by FDT or its employees or agents of Confidential Information of CSG or a CSG Client. 6.2 CSG's Indemnification. CSG shall hold harmless and indemnify FDT, its Affiliates and their respective directors, officers, employees and agents from and against any and all claims, liabilities, losses or damages (including reasonable attorney fees, expert witness fees, expenses and costs of settlement) resulting from or arising out of: 6.2.1 any infringement, misappropriation or violation of any patent, copyright, trade secret or other intellectual property rights (collectively, "Infringement Claims") asserted by any third party against FDT and/or any of its Affiliates in connection with any Application Software; 6.2.2 the death or bodily injury of any agent, employee, customer, client, business invitee or business visitor of CSG except to the extent, if any, that such death or bodily injury shall have been caused by the gross negligence or reckless or intentional conduct of FDT; provided, however, that for purposes of this Section 6.2.2, the agents, employees, customers, clients, business invitees and business visitors of FDT shall not, when on the premises of CSG, be deemed CSG's business invitee or business visitor; 6.2.3 any payment obligations of CSG to a third party relating to the CSG Proprietary Software; 6.2.4 any Infringement Claim or other claim asserted by any third party against FDT in connection with CSG Data or records provided by CSG or CSG Clients to FDT in connection with the FDT Services; 6.2.5 any claims by third parties, including pursuant to any actions brought derivatively on behalf of CSG or actions by CSG Clients, suppliers or creditors of CSG, unless such claims arise from the sole gross negligence or willful misconduct of FDT; and 6.2.6 any misappropriation or misuse by CSG or its employees or agents of Confidential Information of FDT. 6.3 Indemnification Procedures. 6.3.1 If any civil, criminal, administrative or investigative action or proceeding (any of the foregoing, a "Claim") is threatened or commenced against any person or Party that a Party is obligated to defend or indemnify under Section 6.1 or 6.2 (such person and such Party, collectively, an "Indemnified Party"), then written notice thereof shall be given to the Party that is obligated to provide indemnification under such Sections (the "Indemnifying Party") as promptly as practicable; provided, however, that any delay by the Indemnified Party in giving such written notice shall not constitute a breach of this Services Agreement and shall not excuse the Indemnifying Party's obligation under this Section 6 except to the extent, if any, that the Indemnifying Party is prejudiced by such delay. After such notice, the Indemnifying Party shall be entitled, if it so elects in writing within ten (10) days after receipt of such notice, to take control of the defense and investigation of such claim and to employ and engage attorneys of its choice reasonably acceptable to the Indemnified Party to handle and defend the same, at the Indemnifying Party's sole cost and expense. The Indemnified Party shall cooperate in all CONFIDENTIAL - DO NOT DISCLOSE 14 reasonable respects with the Indemnifying Party and its attorneys in the investigation, trial and defense of such claim and any appeal arising therefrom; provided however, that the Indemnified Party may, at its own cost and expense, participate through its attorneys or otherwise, in such investigation, trial and defense of such claim and any appeal arising therefrom. No settlement of a claim that involves a remedy other than the payment of money by the Indemnifying Party shall be entered into by the Indemnifying Party without the prior consent of the Indemnified Party, which consent will not be unreasonably withheld or delayed. 6.3.2 After written notice by the Indemnifying Party to the Indemnified Party of its election to assume full control of the defense of any such claim pursuant to Section 6.3.1, the Indemnifying Party shall not be liable to the Indemnified Party for any legal expenses incurred thereafter by such Indemnified Party in connection with the defense of that claim and any appeal arising therefrom. If the Indemnifying Party does not assume full control over the defense of a claim pursuant to Section 6.3.1, then the Indemnifying Party may participate in such defense, at its sole cost and expense, and the Indemnified Party shall have the right to defend the claim in such manner as it may deem appropriate, at the cost and expense of the Indemnifying Party. 6.3.3 The remedy of indemnification described in this Section 6 shall be the sole and exclusive remedy of the Indemnified Party for the Infringement Claims and other claims described in Section 6.1 and Section 6.2, except as otherwise provided herein for injunctive relief, the recovery of consequential damages relating to the breach of confidentiality obligations or misappropriation of Confidential Information and the recovery of an Infringement Payment. 6.4 Additional Matters concerning Application Software. If the Application Software or any portion thereof is the subject of an Infringement Claim asserted by any third party against FDT and/or any of its Affiliates, in addition to CSG's indemnity obligations set forth in Section 6.2.1, CSG may, at its sole cost and expense, obtain a license for FDT to continue to use the same to provide the FDT Services, or modify or replace the same in a commercially reasonable manner and/or at a commercially reasonable price so that such software is no longer the subject of an Infringement Claim. 6.5 Dispute Resolution. Subject to Section 6.6, any and all Disputes shall be resolved as provided in Schedule 6.5. 6.6 Litigation. 6.6.1 Notwithstanding anything to the contrary set forth herein, neither Party shall be required to submit any dispute or disagreement regarding the interpretation of any provision of this Services Agreement, the performance by either Party of such Party's obligations under this Services Agreement or a default hereunder to the mechanisms set forth in Section 6.5, if such submission would be seeking equitable relief from irreparable harm. 6.6.2 THE PARTIES CONSENT TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE STATE OF NEBRASKA AND OF ANY NEBRASKA STATE COURT SITTING IN OMAHA, NEBRASKA FOR ALL LITIGATION WHICH MAY BE BROUGHT WITH RESPECT TO THE TERMS OF, AND THE TRANSACTIONS AND RELATIONSHIPS CONTEMPLATED BY, THIS SERVICES AGREEMENT. THE PARTIES FURTHER CONSENT TO THE JURISDICTION OF ANY STATE COURT LOCATED WITHIN A DISTRICT WHICH ENCOMPASSES ASSETS OF A PARTY AGAINST WHICH A JUDGMENT HAS BEEN RENDERED, EITHER THROUGH ARBITRATION OR THROUGH LITIGATION, FOR THE ENFORCEMENT OF SUCH JUDGMENT AGAINST THE ASSETS OF SUCH PARTY. CONFIDENTIAL - DO NOT DISCLOSE 15 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." Section 7 Limitation of Liability 7.1 Limitation on Amount of Damages. It is understood and agreed that a Party's liability to the other Party or any other person for damages, injuries, losses, costs or expenses of any kind, however caused, based on or arising from or in connection with this Services Agreement, any termination hereof, the subject matter hereof, the performance (or non-performance) of any of the FDT Services or other service or obligation hereunder, whether arising in contract or tort (including as a result of negligence or strict liability), and whether or not such Party shall have been informed, or might have anticipated the possibility of any such damage, loss, cost or expense (collectively, "Losses and Expenses"), shall be limited with respect to each consecutive twelve (12) month period during the Term commencing with the Effective Date, to the direct damages actually incurred by such Party or person, or consequential damages incurred by either Party as a result of the misappropriation or misuse of Confidential Information, and shall be recoverable if, and only to the extent such Losses and Expenses exceed *** ******* ***** ******** dollars ($***); and provided further, that the aggregate amount required to be paid by a Party to the Party or any other person for all such Losses and Expenses shall not exceed during the first year following the Effective Date, ******** ******* dollars ($***), and for every year thereafter, the lesser of ******* ******* dollars ($***) or FDT's revenues under this Services Agreement for the twelve (12) month period immediately preceding the date of the event giving rise to the claim. The foregoing limitations shall not apply to amounts for fees and charges, including the fees and charges in Schedule 1.25, and the fees and charges otherwise due and payable under this Services Agreement. 7.2 Unique Damages Payable by FDT to CSG. Notwithstanding Section 7.1, and subject to Section 2.13.2, if in any calendar year during the Term CSG pays penalties or issues credits to CSG Clients that exceed *** ******* ******** dollars ($***), and such penalties or credits are a direct and proximate result of FDT's failure to meet the Principal Performance Criteria, then FDT shall issue CSG a credit for ***** percent (**%) of such payments made or credits issued by CSG (provided that CSG provides FDT with documentation reasonably acceptable to FDT relating to the payment of such penalties or issuance of such credits), such credits not to exceed *** ******* ******** dollars ($***) in the aggregate in any calendar year during the Term. The Parties acknowledge and agree that any credits issued by FDT to CSG pursuant to this Section 7.2 shall not be applied to the *** ******* ***** ******** dollar ($***) figure described in Section 7.1, but shall be included in the liability limitations set forth in Section 7.1. 7.3 Provision of FDT Services. CSG acknowledges that the FDT Services provided by FDT are to assist CSG in its business activities and are not intended to replace its professional skill and judgment. CSG shall be solely responsible for: (i) its own actions or omissions, and the actions or omissions of its agents, employees and clients with respect to CSG Data used as input for the FDT Services, and (ii) any use of any FDT Services and any use made by CSG, its agents, employees and clients of CSG Data, reports or other products produced through any of the FDT Services. 7.4 Mitigation. Each Party shall use commercially reasonable efforts to mitigate damages for which the other Party is responsible. 7.5 Limitation of Assertions. Neither Party may assert any cause of action against the other Party under this Services Agreement that accrued more than one (1) year prior to: (i) the filing of a suit; or (ii) the commencement of arbitration proceedings alleging such cause of action. CONFIDENTIAL - DO NOT DISCLOSE 16 7.6 Express Allocation of Risks. The Parties expressly acknowledge that the limitations contained in this Section 7 and Section 6, Section 8 and Section 9 represent the express agreement of the Parties with respect to the allocation of risks between the Parties, including the level of risk to be associated with the provision of the FDT Services as related to the FDT Service Charges, and each Party fully understands and irrevocably accepts such limitations. The Parties acknowledge that but for the limitations contained in this Section 7 and Section 6, Section 8 and Section 9, the Parties would not have entered into this Services Agreement. Section 8 Standard of Care and Exclusion of Warranties FDT will use reasonable commercial efforts to meet the Performance Criteria, and FDT will use reasonable care in providing the FDT Services pursuant to this Services Agreement. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS SERVICES AGREEMENT, FDT MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, TO CSG OR TO ANY OTHER PERSON, INCLUDING ANY WARRANTIES REGARDING THE MERCHANTABILITY, SUITABILITY, ORIGINALITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE (IRRESPECTIVE OF ANY PREVIOUS COURSE OF DEALINGS BETWEEN THE PARTIES OR CUSTOM OR USAGE OF TRADE), OR RESULTS TO BE DERIVED FROM THE USE OF ANY SOFTWARE, FOR SERVICES, HARDWARE OR OTHER SERVICES, PRODUCTS OR MATERIALS PROVIDED UNDER THIS SERVICES AGREEMENT. Section 9 Exclusion of Damages NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY SET FORTH IN THIS SERVICES AGREEMENT, IN NO EVENT SHALL EITHER PARTY, ANY OF THEIR AFFILIATES OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR SUBCONTRACTORS BE LIABLE UNDER ANY THEORY OF TORT, CONTRACT, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY LOST PROFITS, LOSS OF DATA, EXEMPLARY, PUNITIVE, SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, EACH OF WHICH IS HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT EITHER PARTY OR ANY OTHER SUCH ENTITY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED THE FOREGOING EXCLUSION SHALL NOT APPLY TO CONSEQUENTIAL DAMAGES INCURRED BY EITHER PARTY AS A RESULT OF THE MISAPPROPRIATION OR MISUSE OF CONFIDENTIAL INFORMATION. Section 10 Confidentiality 10.1 Confidential Information. Information exchanged between the Parties or otherwise made available by one Party for the other in connection with this Services Agreement before or after the date hereof shall be considered a trade secret or confidential or proprietary information ("Confidential Information") if it has been designated as such in this Services Agreement or on the information itself when delivered or made available, or if delivered orally, if a written notification of the confidential nature of the information is sent within a reasonable time after the information is transmitted. Among other things, Confidential Information shall include confidential or proprietary information of third parties in the possession of one of the Parties to this Services Agreement and needed to perform obligations hereunder. This Services Agreement, the Systems Software and CSG Proprietary Software shall in any event be considered Confidential Information of the Parties or their licensors, respectively. Confidential CONFIDENTIAL - DO NOT DISCLOSE 17 Information not requiring a marking shall include this Agreement, the Systems Software, CSG Proprietary Software, all specifications and documentation therefor, financial information of either Party, all CSG Data processed in the FDT Data Center, or other confidential business plans of either Party. 10.1.1 Except as expressly authorized by prior written consent of the disclosing Party, the receiving Party shall: (i) limit access to any Confidential Information received by it to its employees, agents, representatives, and consultants who have a need-to-know in connection with this Services Agreement and the obligations of the Parties hereunder; (ii) advise its employees, agents and consultants having access to the Confidential Information of the proprietary nature thereof and of the obligations set forth in this Services Agreement; (iii) safeguard all Confidential Information received by it using a reasonable degree of care, but not less than that degree of care used by the receiving Party in safeguarding its own similar information or material; (iv) not disclose any Confidential Information received by it to third parties; (v) use the Confidential Information of the other Party only for the purposes and in connection with the performance of such Party's obligations under this Services Agreement; and (vi) upon the disclosing Party's request after expiration or termination of this Services Agreement, return promptly to the disclosing Party all Confidential Information of the disclosing Party in the receiving Party's possession, and certify in writing to the disclosing Party its compliance with this subsection (vi). 10.1.2 Exceptions to Confidentiality. Notwithstanding the foregoing Section 10.1.1, the Parties' obligations respecting confidentiality under Section 10.1.1 shall not apply to any particular information of a Party that the other Party can demonstrate: (i) was, at the time of disclosure to it, in the public domain; (ii) after disclosure to it, is published or otherwise becomes part of the public domain through no fault of the receiving Party; (iii) was in the possession of the receiving Party at the time of disclosure to it without being subject to another confidentiality agreement; (iv) was received after disclosure to it from a third party who had a lawful right to disclose such information to it; (v) was independently developed by the receiving Party without reference to Confidential Information of the furnishing Party; (vi) was required to be disclosed to any regulatory body having jurisdiction over FDT or CSG or any of their respective clients; or (vii) that disclosure is necessary by reason of legal, accounting or regulatory requirements beyond the reasonable control of the receiving Party. In the case of any disclosure pursuant to clauses (vi) and (vii) above, to the extent practical, the disclosing Party shall give prior written notice to the other Party of the required disclosure and shall use commercially reasonable efforts to obtain a protective order covering such disclosure. If such a protective order is obtained, such information shall continue to be deemed to be Confidential Information. 10.1.3 Additional Limited Exception to Confidentiality. Notwithstanding the foregoing Section 10.1.1, FDT may disclose those portions of this Services Agreement addressing CSG's limited use rights relating to the Development Software and CSG's obligations to maintain the confidentiality of the Development Software to vendors of the same. CONFIDENTIAL - DO NOT DISCLOSE 18 10.2 No License or Other Rights. Except as specifically granted herein or in the Stock Purchase Agreement, this Services Agreement does not confer any right, license, interest or title in, to or under the Confidential Information to the receiving Party and no license is hereby granted to the receiving Party, by estoppel or otherwise under any patent, trademark, copyright, trade secret or other proprietary right of the disclosing Party. Title to the Confidential Information shall remain solely in the disclosing Party. 10.3 Publicity and Use of Certain Information. Neither Party will, without the other Party's prior written consent, use the name, service marks or trademarks of the other Party or any of its Affiliates; provided, however, that FDT may use CSG as a reference and may indicate to others that CSG purchases the FDT Services under this Services Agreement. Either Party may disclose to other persons and Entities the existence and general nature of the Services Agreement but not the terms and conditions hereof. 10.4 Equitable Remedies. Each Party acknowledges that if it breaches (or attempts to breach) its obligations under this Section 10, the other Party will suffer immediate and irreparable harm, it being acknowledged that legal remedies are inadequate. Accordingly, if a court of competent jurisdiction should find that a Party has breached (or attempted to breach) any such obligations, such Party will not oppose the entry of an appropriate order compelling performance by such Party and restraining it from any further breaches (or attempted breaches). 10.5 Privileged Data. CSG accepts full responsibility for complying with federal, state and local laws, rules and regulations concerning use of privileged or confidential third party information derived from input into or output from the FDT Services provided by FDT under this Services Agreement. Section 11 Termination 11.1 Termination for Cause. Except as provided in Section 11.2, if either Party breaches any of its material obligations under this Services Agreement, which breach is not substantially cured within forty-five (45) days (ten (10) days for payment defaults) after written notice specifying the breach is given by the non-breaching Party to the breaching Party, then the other Party may, by giving notice to the defaulting Party terminate this Services Agreement (or any service provided by or received by the non-defaulting Party hereunder) for cause as of a future date specified in the notice of termination; provided however, such termination notice shall not: (i) if delivered by CSG to FDT, specify a future termination date more than twelve (12) months from the date of the notice; (ii) if delivered by FDT to CSG, specify a future termination date less than nine (9) months from the date of the notice; and (iii) in any case, otherwise extend the Term of this Services Agreement beyond the date for termination specified in any previous termination notice delivered by either Party pursuant to the terms of this Services Agreement. Notwithstanding anything herein to the contrary, in no event shall the operation of this Section 11.1 extend the Term. 11.2 Termination for Failure to Meet Performance Criteria. FDT's performance during any month shall be evaluated against the Performance Criteria set forth in Schedule 2.13. If FDT fails to perform a specified Performance Criteria in accordance with Section 2.13 and Schedule 2.13 during any two (2) consecutive months, CSG may notify FDT in writing of its desire to have FDT correct such failure (hereinafter referred to as "Failed Criteria"). During the next thirty (30) days after receipt of such notice or such shorter period if FDT shall request less than thirty (30) days (hereinafter referred to as "First Cure Period"), FDT shall correct such Failed Criteria and immediately notify CSG of its correction. If FDT fails to correct such Failed Criteria within the First Cure Period, CSG shall have a right to terminate this Services Agreement; provided, that this termination option is exercised within thirty (30) CONFIDENTIAL - DO NOT DISCLOSE 19 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." days after the end of the First Cure Period. Such termination shall become effective on a date specified by CSG, which date shall be not later than twelve (12) months after CSG's delivery to FDT of a written notice of its intention to so terminate. If FDT cures the Failed Criteria within the First Cure Period, but thereafter within the next sixty (60) days again fails to satisfy such Failed Criteria, CSG, at its election, may terminate this Services Agreement; provided, that this termination option is exercised within thirty (30) days after CSG receives notice of FDT's repeated failure to perform (as set forth above), and provided that such termination shall become effective on a date specified by CSG, which date shall be not later than twelve (12) months after CSG's delivery to FDT of a written notice of its intention to so terminate this Services Agreement. Notwithstanding anything herein to the contrary, in no event shall the operation of this Section 11.2 extend the Term. 11.3 Termination Due to Change of Control or Assignment. CSG shall -------------------------------------------------- notify FDT within ten (10) business days after any public announcement relating to: (a) the sale in one transaction or a series of related transactions of a majority of the voting equity securities of CSG other than pursuant to an underwritten public offering; or (b) any other matter specified in Section 12.3. FDT may, within thirty (30) days of receipt of any such notice, notify CSG of its intent to terminate this Services Agreement, effective no earlier than twelve (12) months from the date of CSG's notice to FDT. FDT shall provide CSG or its designee with Termination Assistance as requested by CSG commencing upon CSG's receipt of FDT's notice pursuant to the limitations and procedures set forth in Section 11.5. 11.4 Termination Due to Certain Infringement Matters. If CSG is unable to ----------------------------------------------- license, modify or license the Applications Software, FDT Software or any portion thereof in a commercially reasonable manner and/or at a commercially reasonable price due to an Infringement Claim asserted against CSG, FDT and/or any of its Affiliates (the unavailability of which would materially adversely affect the business or operations of CSG), CSG may terminate this Services Agreement effective no later than nine (9) months from the date CSG notifies FDT of its intent to terminate this Services Agreement pursuant to this Section 11.4. In addition to any payments otherwise due FDT pursuant to this Agreement and CSG indemnification obligations, CSG shall pay to FDT no later than sixty (60) days prior to the termination of this Services Agreement as liquidated damages the greater of: (i) ****** **** percent (**%) of the net present value of the remaining management fees and network services fees payments that would be due FDT pursuant to this Services Agreement as set forth in Schedule 1.25 as well as the payments that would be due FDT for CPU Rate, DASD Rate, Tape Rate and One-Way Tape based on the then-current rates and forecasts set forth in Schedule 1.25; or (ii) ******* ******* dollars ($***) (the "Infringement Payment"), provided that if CSG shall notify FDT of its intent to terminate this Agreement in accordance with this Section 11.4 during the final twelve (12) months period during the Term, CSG shall pay to FDT an Infringement Payment equal to ***** percent (**%) of the net present value of the remaining management fees and network services fees payments that would be due FDT pursuant to this Services Agreement as set forth in Schedule 1.25 as well as the payments that would be due FDT for CPU Rate, DASD Rate, Tape Rate and One-Way Tape based on the then-current rates and forecasts set forth in Schedule 1.25. Notwithstanding anything herein to the contrary: (a) in no event shall the operation of this Section 11.4 extend the Term; and (b) in no event shall the payment by CSG to FDT of any Infringement Payment hereunder be deemed to be Losses and Expenses for purposes of Section 7.1. For purposes of this Section 11.4, net present value shall be calculated on a compounded monthly basis using a per annum interest rate equal to *** percent (***%) over the prime rate as published in the Wall Street Journal on the ninetieth (90th) day prior to the termination date, it being understood that if such day is not a business day, such calculation shall be undertaken using the prime rate as published in the Wall Street Journal on the immediately preceding business day. CONFIDENTIAL - DO NOT DISCLOSE 20 11.5 Termination Assistance. Commencing upon the giving of notice of any ---------------------- termination of this Services Agreement by either Party pursuant to Section 11, and ending upon the earlier of: (a) the effective date of any such termination identified in any such notice, or (b) the expiration of the Term, FDT will provide to CSG reasonable termination assistance requested by CSG to facilitate the orderly transfer of the systems management operations from FDT to CSG or its designee (the "Termination Assistance"). All CSG Data or data of CSG Clients shall be supplied on electronic media in a format selected by FDT. In addition, FDT shall: (i) provide to CSG appropriate file structure information; (ii) identify the parameters selected for the Systems Software; (iii) identify applicable procedures and processes relating to job streams; and (iv) use reasonable commercial efforts to obtain for CSG licenses to the Software of Third Party Providers that is used by FDT exclusively to provide FDT Services hereunder, it being understood that FDT may be unable to obtain such licenses. To the extent that any Termination Assistance is provided hereunder, CSG shall pay FDT for such Termination Assistance on a time and materials basis at FDT's then current rates in effect under this Services Agreement, unless CSG shall terminate the Services Agreement under Section 11.1 or Section 11.2, which in each such case, CSG shall not be liable for the payment of Termination Assistance, but CSG shall continue to pay all other fees and charges due under this Services Agreement. If this Services Agreement is terminated by FDT pursuant to Section 11.1, then CSG shall prepay FDT, on the first day of each month in which Termination Assistance will be provided and as a condition to FDT's obligation to provide Termination Assistance to CSG or its designee, an amount equal to FDT's reasonable estimate of the total amount payable to FDT for such Termination Assistance for such month. In addition, unless this Services Agreement shall expire or CSG shall terminate this Services Agreement under Section 11.1 or Section 11.2, CSG shall pay, or reimburse FDT for, all lease, license or other contract termination, transfer, assignment, access, upgrade, maintenance or related fees and expenses associated with the provision of the Termination Assistance to CSG or its designee. Prior to providing any of such Termination Assistance to a CSG designee, FDT shall be entitled to receive from such designee, in form and substance, reasonably satisfactory to FDT, written assurances that (A) such designee shall maintain at all times the confidentiality of any FDT Confidential Information, Software or materials disclosed or provided to, or learned by, such designee in connection therewith, and (B) such designee shall use such Confidential Information, Software or materials exclusively for purposes for which CSG is authorized to use such items pursuant to this Services Agreement. FDT shall have no obligation to provide any Software to CSG as part of the Termination Assistance other than the return of the Application Software as required by this Services Agreement. 11.6 Expiration Assistance. FDT shall provide CSG or its designee with --------------------- Termination Assistance as requested by CSG commencing no earlier than twelve (12) months prior to the expiration of this Services Agreement pursuant to the limitations and procedures set forth in Section 11.5. 11.7 Access upon Expiration or Termination. Upon the effective date of ------------------------------------- any expiration or termination of this Services Agreement, FDT shall have no further obligation to provide CSG with access to or use of the Platform, FDT telecommunications networks or any Systems Software. 11.8 Rights Upon Expiration or Termination. Upon expiration or ------------------------------------- termination of this Services Agreement for any reason, CSG shall pay FDT for all amounts payable to FDT pursuant to the terms of this Services Agreement including all reimbursable expenses incurred by FDT through the effective date of such expiration or termination. The provisions of Section 3, Section 4, Section 5, Section 6, Section 7, Section 8, Section 9, Section 10, and Sections 11.5, 11.8, 12.1, 12.5, 12.8, 12.12, 12.13, 12.14, 12.15 and 12.16 shall survive the expiration or termination of this Services Agreement for any reason. In addition, the expiration or termination of this Services Agreement shall not affect the validity of the License Agreements, which shall continue in full force and effect in accordance with their terms. CONFIDENTIAL - DO NOT DISCLOSE 21 Section 12 Miscellaneous ------------- 12.1 Notice. All notices, requests, demands and other communications ------ required or permitted under this Services Agreement shall be deemed to have been duly given and made if in writing upon being served either by personal delivery or by telecopier to the Party for whom it is intended or two (2) business days after being deposited, postage prepaid, certified or registered mail, return receipt requested (or such form of mail as may be substituted therefor by postal authorities), in the United States mail, bearing the address shown in this Section 12.1 for, or such other address as may be designated in writing hereafter by such Party: If to CSG: CSG Systems, Inc. 2525 N. 117th Avenue Omaha, Nebraska 68164 Attention: Associate General Counsel Telecopy: 402-431-7218 With a copy to: CSG Systems, Inc. 7887 E. Bellview Avenue Englewood, Colorado 80111 Attention: President Telecopy: 303-796-2881 and CSG Systems, Inc. 7887 E. Bellview Avenue Englewood, Colorado 80111 Attention: General Counsel Telecopy: 303-796-4012 If to FDT: First Data Technologies, Inc. 6200 South Quebec Street, Ste. 335 Englewood, Colorado 80111 Attn: Charles T. Fote, President Telecopy: 303-488-8292 With a copy to: First Data Corporation 5660 New Northside Drive Atlanta, Georgia 30328 Attention: General Counsel Telecopy: 770-857-0414 12.2 Entire Agreement. This Services Agreement and the Schedules hereto ---------------- embody the entire agreement and understanding of the Parties hereto with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings relative to said subject matter. 12.3 Assignment: Transfer; Binding Agreement. Either Party may assign this --------------------------------------- Services Agreement to any Affiliate of such Party upon notice to the other Party. Either Party may: (i) transfer this Services Agreement in connection with any merger or consolidation of such Party with another corporation, provided that such Party furnishes the other Party with notice of such transfer within ten (10) CONFIDENTIAL - DO NOT DISCLOSE 22 business days of the public announcement of the same; or (ii) in connection with the sale of substantially all of the Party's assets (including the rights of a Party under this Services Agreement), provided that (a) the assignee thereof shall assume all of such Party's obligations hereunder, and (b) the Party furnishes the other Party with notice of the public announcement of such assignment and assumption within ten (10) business days of the same. Subject to the foregoing, all provisions contained in this Services Agreement shall extend to and be binding upon the Parties hereto and their respective permitted successors and permitted assigns. 12.4 Force Majeure. No Party shall be liable for any default or delay in ------------- the performance of its obligations (other than payment obligations) under this Services Agreement if and to the extent such default or delay is caused, directly or indirectly, by (i) fire, flood, elements of nature or other acts of God; (ii) any outbreak or escalation of hostilities, war, riots or civil disorders in any country; (iii) any act, failure to act or omission of the other Party or any governmental authority; (iv) any labor disputes (whether or not the employees' demands are reasonable or within the Party's power to satisfy); or (v) nonperformance by a third party (including third party vendors) or any other similar cause beyond the reasonable control of such Party, including failures or fluctuations in electrical or telecommunications equipment or lines or other equipment. In any such event, the non-performing Party will be excused from any further performance or observance of the obligation so affected only for as long as such circumstances prevail and such Party continues to use commercially reasonable efforts to recommence performance or observance as soon as practicable. 12.5 Risk of Loss. Except as otherwise provided in this Section 12.5, ------------ each party shall be responsible for risk of loss of, and damage to, any equipment, software or other materials in its possession or under its control, subject to Section 12.4. Notwithstanding anything in this Services Agreement to the contrary, each Party to this Services Agreement (the "Damaged Party") hereby waives any and all rights of recovery, claims, actions or causes of action, against the other Party (the "Other Party"), its Affiliates, and any of its or their directors, officers, employees, agents and subcontractors for any loss or damage that may occur to the Damaged Party's facilities, any improvements thereto, or any building or project of which the Damaged Party's facilities are a part, or any improvements thereon, or any personal property of any Entity therein, by reason of fire, the elements or any other cause that could be insured against under the terms of standard fire and extended coverage insurance policies, regardless of cause or origin, including negligence of the Other Party, its Affiliates, or such Other Party's or its Affiliates' directors, officers, employees, agents or subcontractors, and both the Parties covenant that no insurer of one Party will hold any right of subrogation against the other. For purposes of this Section 12.5, the FDT Data Center shall be deemed to be under the control of FDT at all times. 12.6 No Third-Party Beneficiaries. Except as set forth in Section 6 with ---------------------------- respect to the indemnification of certain directors, officers, employees, agents and Affiliates of the Parties, nothing contained in this Services Agreement is intended to confer upon any Entity (other than the Parties hereto) any rights, benefits or remedies of any kind or character whatsoever, and no Entity shall be deemed a third-party beneficiary under or by reason of this Services Agreement. 12.7 Severability. If any provision of this Services Agreement or the ------------ application of any such provision to any Entity, or circumstance, shall be declared judicially or by the Arbitration Panel (as defined in Schedule 6.5) to be invalid, unenforceable or void, such decision shall not have the effect of invalidating or voiding the remainder of this Services Agreement, it being the intent and agreement of the Parties that this Services Agreement shall be deemed amended by modifying such provision to the extent necessary to render it valid, legal and enforceable while preserving its intent or, if such modification is not possible, by substituting therefor another provision that is valid, legal and enforceable so as to materially effectuate the Parties' intent. CONFIDENTIAL - DO NOT DISCLOSE 23 12.8 Certain Construction Rules. The description of any FDT Services -------------------------- contained in the Schedules is qualified in its entirety by reference to the information set forth in the provisions of this Services Agreement. To the extent that the provisions of this Services Agreement and of the Schedules are in any respect inconsistent, the provisions of this Services Agreement shall govern and control. In the event of any conflict between the terms of use relating to the Software that is the subject matter of the License Agreements and the terms of this Services Agreement, the terms of the License Agreements shall prevail. 12.9 Compliance With Laws. CSG and its employees and agents and FDT and -------------------- its employees and agents shall comply, except where noncompliance would not have a material adverse effect on the Parties hereto, with all applicable laws, ordinances, regulations and codes relating to this Services Agreement, other than those relating solely to performance of the FDT Services, which shall be the responsibility of FDT. 12.10 Counterparts. This Services Agreement may be executed ------------ simultaneously in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 12.11 Headings. The article and section headings and the table of contents -------- contained in this Services Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of the Services Agreement. The recitals set forth on the first page of this Services Agreement are incorporated into the body of the Services Agreement. 12.12 No Interpretation Against Drafter. Both Parties have participated --------------------------------- substantially in the negotiation and drafting of this Services Agreement and each Party hereby disclaims any defense or assertion in any litigation or arbitration that any ambiguity herein should be construed against the draftsman. 12.13 Waiver. Except as expressly provided herein, this Services Agreement ------ may not be changed, amended, terminated, augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the Parties hereto. No waiver of any of the provisions or conditions of this Services Agreement or any of the rights of a Party hereto shall be effective or binding unless such waiver shall be in writing and signed by the Party claimed to have given or consented thereto. Except to the extent that a Party hereto may have otherwise agreed in writing, no waiver by that Party of any term, condition or other provision of this Services Agreement, or any breath thereof by any other Party shall be deemed to be a waiver of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision by the other Party, nor shall any forbearance by the first Party or Parties to seek a remedy for any noncompliance or breach by the other Party be deemed to be a waiver by the first party of its, his, her or their rights and remedies with respect to such noncompliance or breach. 12.14 Consent. If either Party requires the consent or approval of the ------- other Party for the taking of, or omitting to take, any action under this Services Agreement, such consent or approval shall not be unreasonably withheld or delayed. 12.15 Governing Law. This Services Agreement shall in all respects be ------------- construed in accordance with and governed by the laws of the State of New York, without regard to its conflict of law provisions. 12.16 Limitation of Representations and Warranties; Indemnification. ------------------------------------------------------------- Notwithstanding anything to the contrary contained herein: (i) no representation or warranty is made in this Services CONFIDENTIAL - DO NOT DISCLOSE 24 Agreement as to any matter which is the subject of a representation or warranty in the Stock Purchase Agreement; (ii) no provision of this Services Agreement shall otherwise expand or limit either Party's indemnity obligations set forth in the Stock Purchase Agreement; and (iii) no provision of this Services Agreement shall otherwise expand or limit either Party's rights or obligations set forth in the License Agreements. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] IN WITNESS WHEREOF, each of the Parties hereto has caused this Services Agreement to be executed as of the Effective Date. CSG SYSTEMS, INC., formerly known as CABLE SERVICES GROUP, INC. ("CSG") Signed By: /s/ Edward C. Nafus ------------------------------------------ Print Name: Edward C. Nafus ----------------------------------------- Title: EVP ---------------------------------------------- FIRST DATA TECHNOLOGIES, INC. ("FDT") Signed By: /s/ Guy Battista ------------------------------------------ Print Name: Guy Battista ----------------------------------------- Title: SVP ---------------------------------------------- CONFIDENTIAL - DO NOT DISCLOSE 25 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." SCHEDULE 1.9 CSG CLIENT DEVELOPMENT SOFTWARE -------------------------------
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Schedule 1.9 - Page 1 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." SCHEDULE 1.17 DEVELOPMENT SOFTWARE --------------------
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Schedule 1.17 - Page 1 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission."
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Schedule 1.17 - Page 2 SCHEDULE 1.21 EXISTING CSG PROPRIETARY SOFTWARE --------------------------------- AFLINFRM BUCHKREO BUPRDISC BUVEDSPL CCIDXXFR ============================================================================================================ AFUPLOW0 BUCHKRFD BUPREDIT BUVEDTBL CCIPINTR ============================================================================================================ ALSQSH BUCHRGBK BUPROMO BUVENROL CCMEMMST ============================================================================================================ ALTRN008 BUCNTRY BUPROSMD BUVENTER CCMONHST ============================================================================================================ AMIMENU BUCPM004 BUPROSMM BUVIPTPP CCNONMON ============================================================================================================ AMIMPA BUCRDRPT BUPROSMW BUVLETTR CCREFUND ============================================================================================================ AMIMTCH BUCRTAMT BUPRSMRT BUVMONBH CCREVDTL ============================================================================================================ AMLOOKC BUCSRPUL BUPTRANS BUVMONDS CCREVTOT ============================================================================================================ AMMTCHB BUCSTMTR BUPULMON BUVMONIO CCRPTLST ============================================================================================================ AMMTCHC BUCSTMT3 BUQTYRPT BUVMONPY CCSUBILL ============================================================================================================ AMMTCHT BUCSTMT8 BUREFRPT BUVMONTL CCSUBLDG ============================================================================================================ AMSTP BUCYCRPT BUREJPUL BUVNAMES CCSUBMRG ============================================================================================================ BCWILBER BUDATER BUROYRPT BUVNOMON CCSUBMST ============================================================================================================ BDVCINIT BUDONBLD BUROYSUB BUVPRMDS CCSWSSW ============================================================================================================ 3BDVCTLFN BUEDSPLT BURPTCPY BUVPSRCH CCTRBLCL ============================================================================================================ BDVQPROC BUEDTRPT BURPTSND BUVRCMSG CCTRNCM ============================================================================================================ BDVQROUT BUEFTMTH BURPT1 BUVSBSCM CCTRNESU ============================================================================================================ BDVQXFER BUEFTTRN BURPT11A BUVSCHIT CCTRNHSE ============================================================================================================ BINREFSW BUEPMAST BURPT11B BUVSPTAB CCTRNMEM ============================================================================================================ BSGETDAT BUEXPPUL BURPT13 BUVSPZDS CCTRNRTN ============================================================================================================ BUACCRPD BUFINRPT BURPT2 BUVSTMT CCTRNTAC ============================================================================================================ BUACCRPW BUFUTDCN BURPT8 BUVTPREO CCTRNWO ============================================================================================================ BUACTDMP BUGENVES BUSCREPT BUZIPEXT CCTRN001 ============================================================================================================ BUACTNO1 BUGLUPDT BUSEQNUM BUZIPSYN CCTRN003 ============================================================================================================ BUACTSTA BUGNLDBD BUSTMT4A B1KIBPSO CCTRN005 ============================================================================================================ BUACTUPD BUHDRED2 BUSVCMST CABLTEST CCTRN006 ============================================================================================================ BUADITAP BUHLDFLG BUSVCPUL CAB99SO CCTRN007 ============================================================================================================ BUADJFMT BUHLDRPT BUTBLPRO CAM7465 CCTRN008 ============================================================================================================ BUADJRES BUHSTUPD BUTELEDT CCACTUPD CCTRN009 ============================================================================================================ BUADKEY BUINSTAT BUTPFMTR CCATXRFO CCTRN010 ============================================================================================================ BUADMDIS BUINTFCE BUTRINPL CCAUGXFR CCTRN011 ============================================================================================================ BUALMRGE BUINTLAD BUTSTDTR CCBANNRB CCTRN012 ============================================================================================================ BUALMTCH BUIPTPOP BUTTXINP CCBBMST CCTRN013 ============================================================================================================ BUAMREPT BULEDGIO BUUDFBLD CCCHGOFF CCTRN014 ============================================================================================================ BUASACTV BUMATCH BUUDFEDT CCCHNMST CCTRN015 ============================================================================================================ BUATHFMT BUMEMUPD BUUPDATE CCCIRLOG CCTRN016 ============================================================================================================ BUATHUSA BUMMBRED BUUSATRN CCCIRMST CCTRN017 ============================================================================================================ BUATRANS BUMMBRUP BUUSGRPT CCCOLBAT CCTRN018 ============================================================================================================ BUBACUP BUMRGSVC BUUSXREF CCDCON22 CCTRN019 ============================================================================================================ BUBILDAT BUNOMO BUVAJEDT CCFLAGER CCTRN020 ============================================================================================================ BUBILRPT BUOFFTRN BUVAJENT CCHSEACT CCTRN021 ============================================================================================================ BUBSPUL1 BUOLSRPT BUVALPHA CCHSECNT CCTRN022 ============================================================================================================ BUCANRPT BUOQLKTP BUVCHDCP CCHSEKEY CCTRN023 ============================================================================================================ BUCCDRFD BUOQSBTP BUVCSRCH CCHSEMRG CCTRN024 ============================================================================================================ BUCCRPTS BUORDFMT BUVCTLF0 CCHSESEQ CCTRN025 ============================================================================================================ BUCHDM9 BUORDTRK BUVEDREO CCIDXMRG CCTRN026 ============================================================================================================
Schedule 1.21 - Page 1 CCTRN027 CCWOLOGX CC849419 CMPWAX1 CPCGEOHS ============================================================================================================ CCTRN028 CCWOMERG CC849428 CMPWCM1 CPCNVCMB ============================================================================================================ CCTRN029 CCWOMLOG CC849460 CMPWCM2 CPCNVDRV ============================================================================================================ CCTRN030 CCWOMRG CC851517 CMPWCM3 CPCNVRPT ============================================================================================================ CCTRN031 CCWOMST CC866010 CMPWCM4 CPCNVSEL ============================================================================================================ CCTRN033 CCWOPULL CC8720A CMPWCM5 CPCNVSPT ============================================================================================================ CCTRN034 CCZIPACM CC8721A CMPWCM6 CPCSQMTC ============================================================================================================ CCTRN035 CC8107TJ CC8722A CMPWCM7 CPGEO100 ============================================================================================================ CCTRN036 CC811860 CC8725A CMPWCS1 CPHSEDRV ============================================================================================================ CCTRN038 CC82051B CC879054 CMPWCS6 CPHSERPT ============================================================================================================ CCTRN039 CC820510 CC879056 CMPWCS7 CPMONRPT ============================================================================================================ CCTRN040 CC821011 CC879062 CMPWDO1 CPNMNPAS ============================================================================================================ CCTRN044 CC821015 CC879163 CMPWDO2 CPRPTSV ============================================================================================================ CCTRN045 CC821110 CC890710 CMPWDO3 CPSUBDRV ============================================================================================================ CCTRN046 CC821149 CC8970 CMPWDO4 CPSVEDIT ============================================================================================================ CCTRN047 CC822318 CC8970B CMPWDO7 CPTRNMRG ============================================================================================================ CCTRN048 CC825502 CC8970C CMPWDS1 CPUPREAD ============================================================================================================ CCTRN049 CC825560 CC8970D CMPWDS2 CPVERGEO ============================================================================================================ CCTRN050 CC825590 CENTCAPS CMPWIUB CPWDMSBR ============================================================================================================ CCTRN051 CC831010 CITYSTAT CMPWIUC CPWODRV ============================================================================================================ CCTRN052 CC834531 CMMDACCT CMPWIUD CPWORPT ============================================================================================================ CCTRN053 CC837012 CMMDEDIT CMPWIUE CPWOSSRT ============================================================================================================ CCTRN054 CC837510 CMMDFT0 CMPWIUF CPZIPBIL ============================================================================================================ CCTRN055 CC837513 CMONSUBY CMPWIU1 CPZIPCAL ============================================================================================================ CCTRN056 CC837542 CMPCKR CMPWIU2 CPZIPCNT ============================================================================================================ CCTRN057 CC837557 CMPCKRL CMPWIU3 CPZIPFRM ============================================================================================================ CCTRN058 CC837564 CMPCLTM CMPWIU4 CPZIPHSE ============================================================================================================ CCTRN059 CC838104 CMPDQV CMPWIU5 CPZIPMCH ============================================================================================================ CCTRN060 CC838148 CMPFBA CMPWIU6 CPZIPRPT ============================================================================================================ CCTRN061 CC838182 CMPFBS CMPWOC1 CPZIPSUB ============================================================================================================ CCTRN062 CC838191 CMPFDS CMPWOC6 CQUEHDLR ============================================================================================================ CCTRN063 CC838365 CMPFMI CMPWRQ1 CSBINS01 ============================================================================================================ CCTRN064 CC8402ZZ CMPLGR CMPWRQ2 CSGACLOP ============================================================================================================ CCTRN065 CC84021A CMPLIN1 CMPWRQ3 CSGENDIT ============================================================================================================ CCTRN13A CC840217 CMPSBY1 CMPWRQ4 CSGSCUPD ============================================================================================================ CCTRN14A CC840218 CMPSFS CMPWRS1 CS010 ============================================================================================================ CCTRN16A CC84062B CMPSVCA CMPWRS6 CTACCTRP ============================================================================================================ CCTRN20A CC840624 CMPSVC1 CMPWTC1 CTACMHSE ============================================================================================================ CCTRN21A CC840641 CMPSVC2 CMPWTC2 CTACSRAL ============================================================================================================ CCTRN21B CC84401B CMPSVC3 CMPWTC3 CTACSRCP ============================================================================================================ CCTRN27A CC84401C CMPSVC4 CMRCS0A0 CTACSRCT ============================================================================================================ CCTRN36A CC84411B CMPSVC5 CMTYCONT CTACSREV ============================================================================================================ CCTRN40A CC844110 CMPSVC6 CMZRALPH CTACSREX ============================================================================================================ CCTRN44A CC844711 CMPSVC7 CM99SO CTACSRIO ============================================================================================================ CCTRN59A CC845055 CMPSVC8 COBVLSR CTACSRMG ============================================================================================================ CCTRN99S CC849323 CMPSVC9 CPBCKBIL CTACSRPT ============================================================================================================
Schedule 1.21 - Page 2 CTACSRSC CTCAPCNV CTCDGRPT CTCFORCE CTCLARSP ============================================================================================================ CTACSRSE CTCAREXP CTCDGUPD CTCFRMNR CTCLASCI ============================================================================================================ CTACTDMP CTCARXPR CTCDLCTL CTCGEOEX CTCLAULD ============================================================================================================ CTACTRPT CTCATHBD CTCDLUPD CTCGNJCL CTCLDGIO ============================================================================================================ CTACTUPD CTCATHEX CTCDMLBX CTCHCONV CTCLGEXT ============================================================================================================ CTADDBRK CTCATHLD CTCDMRPT CTCHDM2 CTCLGLOD ============================================================================================================ CTADDMSP CTCBCAAD CTCDMUPD CTCHDM4 CTCLOBRP ============================================================================================================ CTADDSRT CTCBINTR CTCDQRPT CTCHDM9 CTCLOYTY ============================================================================================================ CTADJBCK CTCBLCCU CTCDSNAL CTCHGRPT CTCMCCRE ============================================================================================================ CTADJEXT CTCBLCRP CTCDTBEX CTCHKREG CTCMCCRP ============================================================================================================ CTADJRES CTCBLCUP CTCDWNFM CTCHKREO CTCMELFT ============================================================================================================ CTADJSTR CTCBLDCU CTCEBCRP CTCHOUSE CTCMIDDT ============================================================================================================ CTAFPREP CTCBLDPR CTCEESIN CTCHOUST CTCMPOAK ============================================================================================================ CTALMRGE CTCBLDRP CTCEESMG CTCHRNRC CTCMSPUL ============================================================================================================ CTAMRPTS CTCBLDUP CTCEESND CTCHRNRT CTCMSSRT ============================================================================================================ CTANIPUL CTCBLDXR CTCEESOT CTCHSEDA CTCMTDRP ============================================================================================================ CTAPKMNT CTCCAFPM CTCEESPT CTCHSEDB CTCMXSEQ ============================================================================================================ CTAPSPLT CTCCARPT CTCEESRT CTCIBUPD CTCNLCUP ============================================================================================================ CTASRCH1 CTCCCRPT CTCENSTM CTCICVCM CTCNLUPD ============================================================================================================ CTASRCH2 CTCCDBIL CTCEPDST CTCICVRP CTCNMGEN ============================================================================================================ CTAS2BLD CTCCDCLN CTCESBLD CTCICVSP CTCNQMAS ============================================================================================================ CTAS2RPT CTCCDROM CTCESCTL CTCINCRP CTCNQTAP ============================================================================================================ CTATCRPT CTCCDRPT CTCESEDT CTCINSRT CTCNRESP ============================================================================================================ CTATCSRT CTCCFMTR CTCESERP CTCIRKB CTCNTFRP ============================================================================================================ CTATC306 CTCCMCUP CTCESNTC CTCIRKLD CTCNTFY ============================================================================================================ CTBACKER CTCCMERG CTCESNXG CTCIRKT CTCNTT2K ============================================================================================================ CTBANNRB CTCCMISP CTCESPRE CTCIRKUP CTCNTVTS ============================================================================================================ CTBANNRS CTCCMRPT CTCESPRT CTCIRK1 CTCNVCID ============================================================================================================ CTBBLOAD CTCCMTCH CTCESRRP CTCIRK10 CTCNVEFT ============================================================================================================ CTBCKRSP CTCCMUPD CTCESSGA CTCIRK11 CTCNVEXT ============================================================================================================ CTBEIQIO CTCCNXFL CTCESTAC CTCIRK12 CTCNVTCC ============================================================================================================ CTBHSEIO CTCCOLIN CTCESTAD CTCIRK3 CTCNVTR2 ============================================================================================================ CTBILLIO CTCCOLSP CTCESUPD CTCIRK4 CTCOCCUP ============================================================================================================ CTBILLUP CTCCOLTO CTCETRPT CTCIRK5 CTCOCRPT ============================================================================================================ CTBLGORD CTCCPGRP CTCETXRF CTCIRK6 CTCOCUPD ============================================================================================================ CTBLKSRT CTCCPMT CTCEVSRP CTCIRK7 CTCOLPUT ============================================================================================================ CTBNKCMP CTCCPSND CTCEVSUP CTCIRK8 CTCOLRFS ============================================================================================================ CTBNKPUL CTCCRPTS CTCEVTAD CTCIRK9 CTCOLRPT ============================================================================================================ CTBRDRPT CTCCTFN CTCEVTCK CTCIRREJ CTCOLUPD ============================================================================================================ CTBRDUPD CTCCTFNA CTCEVTLD CTCITMEM CTCOMSLT ============================================================================================================ CTBSPUL1 CTCCVRPT CTCEXRPT CTCIXLOD CTCONREJ ============================================================================================================ CTBTPRPT CTCCYCAL CTCEXTBB CTCKFTCH CTCONVPL ============================================================================================================ CTBULKBL CTCCYCCD CTCEXTMC CTCKRDEC CTCOPCUP ============================================================================================================ CTCADJXF CTCCYCPR CTCEXTRS CTCKRSEL CTCOPRPT ============================================================================================================ CTCALFLD CTCCYCWS CTCEXWAM CTCLABEL CTCOPUPD ============================================================================================================ CTCALLZP CTCDEDIT CTCFINIO CTCLAGNT CTCOQARI ============================================================================================================
Schedule 1.21 - Page 3 CTCOQBIL CTCRPTSP CTCSUBHW CTCUMADJ CTDLCUP ============================================================================================================ CTCOQMAS CTCRSRPT CTCSUBIF CTCUSBLD CTDLEVNT ============================================================================================================ CTCOQTAP CTCRTPRM CTCSUBRS CTCUSCUP CTDLYACM ============================================================================================================ CTCORDFB CTCRYTOT CTCSVCBL CTCUSGIN CTDLYACT ============================================================================================================ CTCORDRS CTCSCHEX CTCSVCDS CTCUSLOD CTDLYRPT ============================================================================================================ CTCOTCUP CTCSDCUP CTCSVCFB CTCUSNUP CTDLYSEC ============================================================================================================ CTCOTGRP CTCSDFMT CTCSVCIO CTCUSUPD CTDLYSUM ============================================================================================================ CTCPACAD CTCSDUPD CTCSXUPD CTCVBHSE CTDMLCUP ============================================================================================================ CTCPCMUP CTCSELTR CTCTAXES CTCVBMRG CTDOCMNT ============================================================================================================ CTCPFNXT CTCSFSPT CTCTAXEX CTCVPPD1 CTDPLSLS ============================================================================================================ CTCPIFUP CTCSIRSP CTCTCIDC CTCVSCIO CTDSABLD ============================================================================================================ CTCPK096 CTCSIRX1 CTCTCISC CTCVSCUP CTDSAEXT ============================================================================================================ CTCPLEVT CTCSIRX2 CTCTDMCP CTCVSLOD CTDSCACT ============================================================================================================ CTCPMREX CTCSIRX3 CTCTDPUL CTCVSRPT CTDSPBLD ============================================================================================================ CTCPM004 CTCSIRX4 CTCTDQRP CTCVSUPD CTDSPCUP ============================================================================================================ CTCPM006 CTCSIRX5 CTCTDSRT CTCVTCON CTDSPEXT ============================================================================================================ CTCPM008 CTCSPCC CTCTEDRP CTCVTEXT CTDSPULL ============================================================================================================ CTCPM070 CTCSPDTE CTCTELEX CTCVTRCP CTDTETME ============================================================================================================ CTCPPVAC CTCSPEDT CTCTELLG CTCVTXSP CTDWACCM ============================================================================================================ CTCPPVBL CTCSPIRP CTCTELSB CTCVXREF CTDWETEL ============================================================================================================ CTCPPVEX CTCSPLIT CTCTEMRP CTCWIUPD CTDWRPTS ============================================================================================================ CTCPPVFM CTCSPMEL CTCTFRMG CTCWOMKT CTDWUPDT ============================================================================================================ CTCPPVTP CTCSPMRG CTCTFRPT CTCWOMRG CTDYNALC ============================================================================================================ CTCPRATE CTCSPRNT CTCTFRUP CTCWOPFM CTEDTCON ============================================================================================================ CTCPROPR CTCSPUHS CTCTFRXR CTCWOWSL CTEECCUP ============================================================================================================ CTCPROTO CTCSRLBX CTCTIDID CTCXRKUP CTEECUPD ============================================================================================================ CTCPROWS CTCSRPTA CTCTKEXP CTCYCAPR CTEFTFMT ============================================================================================================ CTCPSTSP CTCSRPTC CTCTLCRD CTCYCAWS CTEFTRET ============================================================================================================ CTCPURCV CTCSRPUL CTCTLSPL CTCYCCHG CTEFTRPT ============================================================================================================ CTCPYADJ CTCSRRPT CTCTOLSP CTCYCCNT CTEFTSPT ============================================================================================================ CTCPYCRD CTCSSCTL CTCTPDSC CTCYCID CTEFTUPD ============================================================================================================ CTCPYFNL CTCSSNAP CTCTPFMT CTCYCMRG CTEPIEDT ============================================================================================================ CTCPYMST CTCSSNFT CTCTTMRP CTCZIPCD CTEPIRPT ============================================================================================================ CTCPYSTX CTCSTBRP CTCTTRRP CTCZIPFX CTEPIUPD ============================================================================================================ CTCQUENP CTCSTMP4 CTCTTTRP CTCZIPRP CTESPOVR ============================================================================================================ CTCRCARD CTCSTMTC CTCTUGIN CTCZIPRT CTESPRPT ============================================================================================================ CTCRDNLD CTCSTMTR CTCTWCEX CTCZIPUP CTEVERRP ============================================================================================================ CTCRDRPT CTCSTMT2 CTCTWHEX CTCZPRPT CTEVSRPT ============================================================================================================ CTCRDSEL CTCSTMT3 CTCTWMEX CTCZSCRP CTEVSTAT ============================================================================================================ CTCRFDRV CTCSTMT4 CTCTWOEX CTC097SP CTEVTCUP ============================================================================================================ CTCRMSCB CTCSTMT5 CTCTWPEX CTDALPHA CTEVTEXT ============================================================================================================ CTCRMSDF CTCSTMT6 CTCTXIFL CTDATER CTEVTIFQ ============================================================================================================ CTCRMSRP CTCSTMT8 CTCTXIRP CTDCCRPT CTEVTORD ============================================================================================================ CTCRMSSX CTCSTMT9 CTCTXRPT CTDELCHK CTEVTSHO ============================================================================================================ CTCRMSXT CTCSTRPT CTCT44RP CTDELRPT CTEVTUPD ============================================================================================================ CTCRPRNT CTCSUBEX CTCT45RP CTDEPRPT CTEVTZUL ============================================================================================================
Schedule 1.21 - Page 4 CTEXADST CTGWPPV CTLOGXFR CTMRGEVT CTOSTM4B ============================================================================================================ CTEXSTM5 CTHACCUP CTLTREDT CTMRGHST CTOSVCBL ============================================================================================================ CTEXTOVR CTHOTADR CTLTRMEM CTMRGLAU CTOSVCDS ============================================================================================================ CTEXTRPT CTHSECPY CTLTRMRG CTMRGRCV CTOTAXES ============================================================================================================ CTFBCCNM CTHSECUP CTLTRPUL CTMRGSEL CTOWOPRT ============================================================================================================ CTFBCCRT CTHSEPUL CTLTRSPL CTMRGSTM CTOWPRT2 ============================================================================================================ CTFBCCTN CTHSESNK CTLTRUPD CTMSPJCL CTPADJLD ============================================================================================================ CTFBCCUP CTHSESPL CTLUSER CTMSPMRG CTPARMRG ============================================================================================================ CTFCHAP1 CTHSEUPD CTMAGBID CTMS00 CTPARTOT ============================================================================================================ CTFCHKEY CTHSRPTS CTMAGDVR CTMWR010 CTPASSWD ============================================================================================================ CTFCHLST CTHSTBLD CTMAGEXT CTMW308 CTPAYXFR ============================================================================================================ CTFCHMCR CTHSWOLG CTMAGTAP CTNA00 CTPCBLST ============================================================================================================ CTFDFBLD CTHSWORJ CTMAILOW CTNBTRT CTPCBSRT ============================================================================================================ CTFFLRPT CTHWACCT CTMALPHA CTNKRPTS CTPCCNTL ============================================================================================================ CTFICHAP CTHWAUDT CTMASADJ CTNMSPLT CTPCSPLT ============================================================================================================ CTFICHBL CTHWOANL CTMASBIL CTNOMO CTPC0010 ============================================================================================================ CTFICHLB CTHWOPUL CTMATREV CTOCMERR CTPC0020 ============================================================================================================ CTFILCOD CTHWORPT CTMATSUB CTOCMPFB CTPC0030 ============================================================================================================ CTFILLOD CTHWOSKY CTMCADST CTOCYCCD CTPC0040 ============================================================================================================ CTFILPUL CTINSTAL CTMCHGOF CTODQVSP CTPC0050 ============================================================================================================ CTFINDTL CTINVRPT CTMCRZAP CTOFBASP CTPC0060 ============================================================================================================ CTFINFTP CTINV040 CTMC2RPT CTOFBSSP CTPC0070 ============================================================================================================ CTFINRPT CTINV050 CTMEMDLY CTOFDSSP CTPC0080 ============================================================================================================ CTFINSIN CTINV060 CTMEMMNY CTOFMISP CTPC0090 ============================================================================================================ CTFINSUM CTIRTMGT CTMEMTWE CTOLGINQ CTPC0100 ============================================================================================================ CTFINTAP CTIRTPUL CTMEMWKY CTOLGRIO CTPC0300 ============================================================================================================ CTFIXADR CTIRTRPT CTMIDCON CTONDMD1 CTPDINTR ============================================================================================================ CTFORMCH CTIRUPDT CTMIRRPT CTONDMD2 CTPHNUM ============================================================================================================ CTFORMS CTJERDIN CTMNSPLT CTONWOPL CTPHOPTN ============================================================================================================ CTFRMMRG CTJRDIIN CTMONBLD CTOPMTSP CTPHOPUL ============================================================================================================ CTFRMSPT CTKDELET CTMONCHG CTOPPRT CTPHORPT ============================================================================================================ CTFTPJOB CTKEXIT CTMONEXT CTOPRATE CTPHPVPP ============================================================================================================ CTF0044B CTKIBPSQ CTMONLOD CTOPSTAT CTPHWRPT ============================================================================================================ CTF0048B CTKIOTSQ CTMONLTR CTORCFMT CTPHW050 ============================================================================================================ CTF0062B CTKPPURC CTMONMRG CTORCPRT CTPHXREF ============================================================================================================ CTF0110B CTKRESET CTMONMTA CTORDCUP CTPINTR ============================================================================================================ CTF0162B CTKSECUR CTMONPUL CTORDEXT CTPIONIN ============================================================================================================ CTF0240B CTKSOALF CTMONRPT CTORDHDR CTPKGBDB ============================================================================================================ CTF6028B CTLABFMT CTMONXFR CTORDTCI CTPKZIPA ============================================================================================================ CTGENSTM CTLABRMT CTMRGACT CTORDUPD CTPMEDIA ============================================================================================================ CTGENST3 CTLBLOG CTMRGASR CTORWKND CTPMTMGR ============================================================================================================ CTGETCYC CTLBSPLT CTMRGAS2 CTOSAPEX CTPMTMRG ============================================================================================================ CTGLDSIN CTLGSPLT CTMRGCHK CTOSAPPU CTPMTRPT ============================================================================================================ CTGLUPDT CTLINTR CTMRGCTL CTOSAPTS CTPMTSPR ============================================================================================================ CTGNLDBD CTLOADPC CTMRGDQV CTOSECTL CTPMTSPT ============================================================================================================ CTGWCONV CTLOADVS CTMRGESU CTOSTM4A CTPMTSWS ============================================================================================================
Schedule 1.21 - Page 5 CTPNDADJ CTRDFBLD CTSADTIN CTSPLESU CTTAXSWS ============================================================================================================ CTPNDPST CTRDFRPT CTSAMMRG CTSPLREP CTTAX120 ============================================================================================================ CTPNDUPD CTREFCHK CTSAOPIN CTSPLSCN CTTBLMIR ============================================================================================================ CTPRECAP CTREFRMT CTSATLIN CTSPLTDT CTTCAUDL ============================================================================================================ CTPRECSF CTREFRPT CTSATRPT CTSPLTRC CTTCIEXT ============================================================================================================ CTPRECVB CTREFUND CTSBCTVD CTSRECAP CTTCIREF ============================================================================================================ CTPREMRG CTREVPUL CTSBCVTD CTSRPROG CTTCIRPT ============================================================================================================ CTPRETEL CTROLCHK CTSBCVTM CTSRVRDN CTTCISUM ============================================================================================================ CTPRNTFL CTROLDAT CTSBCVTR CTSRVRFM CTTCRESL ============================================================================================================ CTPROMED CTROYACT CTSBCVTW CTSTATR1 CTTC055 ============================================================================================================ CTPROME1 CTROYADD CTSBCVUM CTSTATR4 CTTC060 ============================================================================================================ CTPROME2 CTROYBLK CTSBSCUP CTSTCPRI CTTC065 ============================================================================================================ CTPRSTMA CTROYCUM CTSBSLOD CTSTMAPL CTTC070 ============================================================================================================ CTPRSTMB CTROYDSK CTSCHPRT CTSTMARP CTTELPFX ============================================================================================================ CTPSAUD1 CTROYERP CTSCHRPT CTSTMAUD CTTELSPT ============================================================================================================ CTPSAUD2 CTROYEXT CTSCHUPD CTSTMCMR CTTELSRT ============================================================================================================ CTPSAUD3 CTROYFIN CTSCKLOD CTSTMINT CTTELUSG ============================================================================================================ CTPS00 CTROYMON CTSDLYAC CTSTMP4A CTTESPLT ============================================================================================================ CTPTNCUP CTROYPUL CTSELBIL CTSTMP4B CTTFRMCH ============================================================================================================ CTPTNUPD CTROYRPT CTSELBLD CTSTMSPL CTTHEFT1 ============================================================================================================ CTPTPRNT CTROYSRT CTSELCIN CTSTMT3S CTTOTRPT ============================================================================================================ CTPTPROC CTROYSUB CTSELCRZ CTSTMT4C CTTWCNVP ============================================================================================================ CTPTRANS CTRPFCHK CTSELCR1 CTSTMUPD CTTWCRPT ============================================================================================================ CTPULCON CTRPSTMT CTSELCR2 CTST00 CTTWHSEP ============================================================================================================ CTPULHSE CTRPSUMS CTSELCR3 CTSUBCAL CTTWMONP ============================================================================================================ CTPULLST CTRPTCCD CTSELECT CTSUBCHG CTUCTEDT ============================================================================================================ CTPULLTC CTRPTCPY CTSELEVT CTSUBCNT CTUCTINP ============================================================================================================ CTPULLWO CTRPTFMC CTSELEXT CTSUBCOM CTUCTOUT ============================================================================================================ CTPULMON CTRPTFRM CTSELHWO CTSUBCVT CTUCTPRT ============================================================================================================ CTPULPLY CTRPTPGM CTSELLAB CTSUBDRV CTUCTSUB ============================================================================================================ CTPULREF CTRPTRIP CTSELNMN CTSUBPMT CTUCTTAX ============================================================================================================ CTPULSCX CTRPTRPT CTSELORD CTSUBPUL CTUDFAUD ============================================================================================================ CTPULSEL CTRPTSPT CTSELRPT CTSUBRDW CTUDFBLD ============================================================================================================ CTPULSLS CTRPT1 CTSELSPC CTSUBTAP CTUDFEDT ============================================================================================================ CTPULSVC CTRPT1A CTSELSPT CTSVBLPR CTUDFMIR ============================================================================================================ CTPULWRK CTRPT11A CTSELSRT CTSVBLWS CTUDFONL ============================================================================================================ CTPUL302 CTRPT11B CTSELTAP CTSVCREC CTUDFRPT ============================================================================================================ CTPURBLD CTRPT13 CTSEQCUP CTSVCRPT CTUDFSRT ============================================================================================================ CTPURCON CTRPT2 CTSEQUPD CTSVCSRT CTUDFSVC ============================================================================================================ CTPURPUL CTRPT8 CTSEQXRF CTSVCXCP CTUDXFMT ============================================================================================================ CTPUSPLT CTRP00 CTSETTLE CTSVDRPT CTUD1000 ============================================================================================================ CTPXRBLD CTRP3060 CTSETTL1 CTSVDSPR CTUD1005 ============================================================================================================ CTRCPPDM CTRSBRPT CTSLSFMT CTSVDSWS CTUD1010 ============================================================================================================ CTRCPRNT CTRYMEDA CTSLSRPT CTSW306 CTUD1020 ============================================================================================================ CTRCPWSM CTSACCUP CTSNTRT CTSYSUPD CTUD1040 ============================================================================================================ CTRCVLOD CTSACUPD CTSPDRPT CTTAXSPR CTUD1050 ============================================================================================================
Schedule 1.21 - Page 6 CTUD1060 CTVARWAC CTVCKDGT CTVCSDMT CTVDLUPD ============================================================================================================ CTUD2000 CTVASCCD CTVCKFMT CTVCSMX CTVDLWRT ============================================================================================================ CTUD2500 CTVASCQI CTVCLARK CTVCSRCH CTVDMLCK ============================================================================================================ CTUD2700 CTVASCRT CTVCMFIO CTVCSXIO CTVDMLCP ============================================================================================================ CTUD3000 CTVASCSR CTVCMLOG CTVCSXRX CTVDMLIO ============================================================================================================ CTUD4000 CTVASEBC CTVCMPRS CTVCS030 CTVDMLSC ============================================================================================================ CTUNEVTM CTVASGEN CTVCMUPD CTVCTBLD CTVDMUSC ============================================================================================================ CTUNORDM CTVASPCT CTVCNBLD CTVCTLFN CTVDSCED ============================================================================================================ CTUPCABL CTVASRCH CTVCNLED CTVCTYSP CTVDSCHG ============================================================================================================ CTUPDATE CTVASUPD CTVCNLIO CTVCTYST CTVDSPIO ============================================================================================================ CTUPDEND CTVAS2IO CTVCNVED CTVCUSED CTVDSPSU ============================================================================================================ CTUPRPTS CTVAS2PR CTVCNVIO CTVCUSIO CTVDSPTA ============================================================================================================ CTUPSUBR CTVATHIO CTVCODGN CTVCUSNO CTVDSPTT ============================================================================================================ CTVAASDS CTVATOAT CTVCOLNT CTVCUSSC CTVDSPWO ============================================================================================================ CTVAICA CTVATPKG CTVCOMIO CTVCVCIA CTVDTBLD ============================================================================================================ CTVAISCR CTVAUTHI CTVCPBUF CTVCVCLD CTVDTDSC ============================================================================================================ CTVAJDSP CTVAUTHO CTVCPCNV CTVCVEDT CTVDTMIO ============================================================================================================ CTVAJEDT CTVBIO CTVCPCUS CTVCVEDT CTVDTTMC ============================================================================================================ CTVAJENT CTVBITCK CTVCPCVE CTVCVEIO CTVDUDET ============================================================================================================ CTVAJSMP CTVBLCED CTVCPCVI CTVCVEMI CTVDUDS ============================================================================================================ CTVAJSRC CTVBLCIO CTVCPDSP CTVCVEMO CTVDYSEC ============================================================================================================ CTVAJSRR CTVBLCIU CTVCPDST CTVCVEPR CTVEDSEM ============================================================================================================ CTVAJUPD CTVBLCRD CTVCPHSE CTVCVESC CTVEDSPL ============================================================================================================ CTVALLOC CTVBLDED CTVCPMPR CTVCVIMI CTVEDTBL ============================================================================================================ CTVALPHA CTVBLDIO CTVCPORD CTVCVIMO CTVEDVAL ============================================================================================================ CTVANCTL CTVBLDIU CTVCPPVS CTVCVIPV CTVEECCP ============================================================================================================ CTVAND CTVBLDRD CTVCPPV2 CTVCVISC CTVEECIO ============================================================================================================ CTVANEMI CTVBLKDS CTVCPQUE CTVCVQUE CTVEECSC ============================================================================================================ CTVANSDE CTVBLKED CTVCPSAC CTVCVREJ CTVEEFIO ============================================================================================================ CTVANSDM CTVBLKIO CTVCPSAM CTVCVTR1 CTVEIQIO ============================================================================================================ CTVANSEM CTVBRDIO CTVCPSCD CTVCVTR2 CTVENTER ============================================================================================================ CTVANTBL CTVBREAK CTVCPSCU CTVCXSRC CTVEPVIO ============================================================================================================ CTVANVEW CTVBRNTR CTVCPSDC CTVDATE CTVEQLOP ============================================================================================================ CTVAPMRG CTVBSRCH CTVCPSED CTVDATEU CTVEQTOT ============================================================================================================ CTVARDSU CTVCAPCC CTVCPSEQ CTVDDUMP CTVESLOD ============================================================================================================ CTVARFRM CTVCCAIO CTVCPSI2 CTVDGLIO CTVESMIO ============================================================================================================ CTVARMPT CTVCCIDS CTVCPTBL CTVDGLOG CTVESPUL ============================================================================================================ CTVARMSG CTVCDSPT CTVCPUID CTVDGLS1 CTVESPUR ============================================================================================================ CTVARSBS CTVCDTBL CTVCPUPL CTVDGLS2 CTVEVCEA ============================================================================================================ CTVARSCH CTVCHDCP CTVCPXPA CTVDGLS3 CTVEVENT ============================================================================================================ CTVARSCR CTVCHECK CTVCPXPL CTVDGLS4 CTVEVERR ============================================================================================================ CTVARSEM CTVCHKIO CTVCPYBT CTVDGTRL CTVEVLFL ============================================================================================================ CTVARUCC CTVCHNLD CTVCPYIT CTVDILFM CTVEVREJ ============================================================================================================ CTVARUFB CTVCHNLM CTVCREEL CTVDISP CTVEVSDN ============================================================================================================ CTVARUOC CTVCHOP CTVCRYPT CTVDLBLD CTVEVSED ============================================================================================================ CTVARUPD CTVCINIT CTVCSDIO CTVDLDFL CTVEVSIO ============================================================================================================
Schedule 1.21 - Page 7 CTVEVSIU CTVINCP CTVLTRTO CTVODCNV CTVOUTJR ============================================================================================================ CTVEVSQU CTVINDC CTVLUAIO CTVODCOL CTVOUTJ0 ============================================================================================================ CTVEVSUP CTVINES CTVL6CNV CTVODCUS CTVOUTJ1 ============================================================================================================ CTVEVTED CTVINFL CTVMBLD CTVODDTS CTVOUTKP ============================================================================================================ CTVEVTIO CTVINGC CTVMCCQU CTVODEDT CTVOUTKS ============================================================================================================ CTVEVXIO CTVINJD CTVMCR CTVODGET CTVOUTLR ============================================================================================================ CTVEXRIQ CTVINJR CTVMEDIT CTVODHSE CTVOUTNV ============================================================================================================ CTVEXTRA CTVINJ0 CTVMEMIO CTVODKEY CTVOUTOA ============================================================================================================ CTVFCTBL CTVINJ1 CTVMEMO CTVODMAR CTVOUTPN ============================================================================================================ CTVFDTBL CTVINKP CTVMENU CTVODMBR CTVOUTPU ============================================================================================================ CTVFDTRD CTVINLR CTVMNAME CTVODMEM CTVOUTSA ============================================================================================================ CTVFIEDT CTVINNV CTVMONBH CTVODMPY CTVOUTSD ============================================================================================================ CTVFIFLD CTVINOA CTVMONCC CTVODPRS CTVOUTSL ============================================================================================================ CTVFIIO CTVINPN CTVMONDU CTVODPXR CTVOUTTD ============================================================================================================ CTVFILER CTVINPU CTVMONIO CTVODREQ CTVOUTTN ============================================================================================================ CTVFILLD CTVINSA CTVMONPL CTVODRPC CTVOUTTO ============================================================================================================ CTVFLDCM CTVINSD CTVMONPY CTVODRPT CTVOUTTR ============================================================================================================ CTVFLDFM CTVINSL CTVMONTL CTVODSAC CTVOUTTS ============================================================================================================ CTVFLESP CTVINTD CTVMONWO CTVODSCU CTVOUTVD ============================================================================================================ CTVFLOAT CTVINTN CTVMPRSC CTVODSDC CTVOUTZN ============================================================================================================ CTVFLOTP CTVINTO CTVMRDYT CTVODSEL CTVOUTZP ============================================================================================================ CTVFLQUE CTVINTR CTVMROTB CTVODSEQ CTVOUT2P ============================================================================================================ CTVFMSVC CTVINVD CTVMROTB CTVODSUB CTVPARSE ============================================================================================================ CTVFONKY CTVINZN CTVMSEND CTVODTIO CTVPCBDF ============================================================================================================ CTVGDSN CTVINZP CTVMSGIO CTVODUPD CTVPCFM ============================================================================================================ CTVGETCC CTVIN2P CTVMSGXF CTVODVAL CTVPCINP ============================================================================================================ CTVGETNO CTVIPTPP CTVNAMCD CTVODWRK CTVPCMED ============================================================================================================ CTVGJCL CTVJOB CTVNAMCM CTVOKEDT CTVPCMIO ============================================================================================================ CTVHBPGM CTVJOBNO CTVNAMES CTVOPEDT CTVPCMIU ============================================================================================================ CTVHRSCH CTVJRCKD CTVNAMLN CTVOPEIO CTVPCMQU ============================================================================================================ CTVHSCVT CTVJSRCH CTVNAMSC CTVOPEIU CTVPCMSG ============================================================================================================ CTVHSEDT CTVKPCKD CTVNAMSW CTVOPUPD CTVPCOUT ============================================================================================================ CTVHSEIO CTVLABFM CTVNMFM CTVOQFMT CTVPCUPL ============================================================================================================ CTVHSESC CTVLDCTL CTVNMNIO CTVOQRAS CTVPCXMT ============================================================================================================ CTVHSHBB CTVLGPUL CTVNQFMT CTVOR CTVPDDCP ============================================================================================================ CTVHSHMU CTVLIPED CTVNQRAS CTVORAMT CTVPDDSC ============================================================================================================ CTVHSHSL CTVLLBB4 CTVNTRY CTVORDER CTVPHENC ============================================================================================================ CTVHSHSU CTVLMTIO CTVOACED CTVORSEM CTVPIFKY ============================================================================================================ CTVHSHZL CTVLOBPR CTVOCEDT CTVOTCIO CTVPINHD ============================================================================================================ CTVHSNUM CTVLRPUR CTVOCIO CTVOUTCP CTVPMINQ ============================================================================================================ CTVHSQUE CTVLSTRT CTVOCKYT CTVOUTDC CTVPML ============================================================================================================ CTVHSTAG CTVLTRDK CTVOCLRS CTVOUTDN CTVPMTIO ============================================================================================================ CTVHSTIO CTVLTRFM CTVOCMTR CTVOUTES CTVPNCKD ============================================================================================================ CTVHSUPD CTVLTRNM CTVOCOIU CTVOUTFL CTVPNMSG ============================================================================================================ CTVHXCHR CTVLTRPR CTVOCRD CTVOUTGC CTVPNPUR ============================================================================================================ CTVIMGCK CTVLTRTI CTVODBLD CTVOUTJD CTVPNSFT ============================================================================================================
Schedule 1.21 - Page 8 CTVPNUPL CTVRCVSP CTVSELDS CTVSSMIU CTVTIMER ============================================================================================================ CTVPOINQ CTVRECFM CTVSELED CTVSSMI2 CTVTNUPL ============================================================================================================ CTVPOLCP CTVREGON CTVSELFL CTVSTAT7 CTVTRACK ============================================================================================================ CTVPPVAL CTVRGNCK CTVSELFM CTVSTMBR CTVTRMBR ============================================================================================================ CTVPPVMV CTVRGNPK CTVSELIO CTVSTMCC CTVTRNFR ============================================================================================================ CTVPROSP CTVRGNTB CTVSELIQ CTVSTMCS CTVTRUPL ============================================================================================================ CTVPSMIU CTVRPTFM CTVSELIT CTVSTMCU CTVTSRCH ============================================================================================================ CTVPSRCH CTVRTPIO CTVSELLB CTVSTMDM CTVTTFLX ============================================================================================================ CTVPTEXT CTVSACED CTVSELMH CTVSTMDQ CTVTTLGX ============================================================================================================ CTVPTWRT CTVSACIN CTVSELNM CTVSTMDS CTVTXIIO ============================================================================================================ CTVPULOG CTVSACIO CTVSELPC CTVSTMED CTVTXIPR ============================================================================================================ CTVPXRIO CTVSACKD CTVSELRP CTVSTMIO CTVTZCON ============================================================================================================ CTVPXRPL CTVSACQU CTVSELRQ CTVSTMMC CTVUDCFM ============================================================================================================ CTVPXRRX CTVSACSC CTVSELSC CTVSTMML CTVUDCP ============================================================================================================ CTVQASVC CTVSAMIO CTVSELTA CTVSTMMM CTVUDFIO ============================================================================================================ CTVQBKLG CTVSAMSC CTVSELTP CTVSTMPA CTVUDLT ============================================================================================================ CTVQCONV CTVSATIO CTVSELWO CTVSTMSS CTVUPSEL ============================================================================================================ CTVQCRDT CTVSATSC CTVSELXX CTVSTMT CTVUSGFM ============================================================================================================ CTVQDLSB CTVSAXRF CTVSEQCO CTVSTMTR CTVVDCKD ============================================================================================================ CTVQDLSP CTVSBEDT CTVSEQED CTVSTM1 CTVVRBIO ============================================================================================================ CTVQEVDL CTVSBED2 CTVSEQIO CTVSTOTA CTVVSMLD ============================================================================================================ CTVQEVNT CTVSBQUE CTVSEQQU CTVSTOTR CTVVSPUT ============================================================================================================ CTVQFBCC CTVSBSBB CTVSEQSC CTVSUBBY CTVWASPC ============================================================================================================ CTVQFBYR CTVSBSCM CTVSERVC CTVSUBEQ CTVWCADJ ============================================================================================================ CTVQINPT CTVSBSVC CTVSESCH CTVSUBIO CTVWMSPC ============================================================================================================ CTVQIUSP CTVSBYTL CTVSESSN CTVSUBMT CTVWOBLK ============================================================================================================ CTVQMCIC CTVSCATG CTVSFSSC CTVSUBNO CTVWOBRO ============================================================================================================ CTVQMEMO CTVSCDSC CTVSGNON CTVSUBRQ CTVWOCVT ============================================================================================================ CTVQNPAY CTVSCEDT CTVSHDLR CTVSUBRX CTVWODSP ============================================================================================================ CTVQNTRK CTVSCHED CTVSHFTL CTVSUBSR CTVWOEDT ============================================================================================================ CTVQPADJ CTVSCHIO CTVSHFTR CTVSUBZ CTVWOED2 ============================================================================================================ CTVQPASS CTVSCHIT CTVSI2SC CTVSUBZC CTVWOED3 ============================================================================================================ CTVQPMON CTVSCICS CTVSLCHR CTVSVCDL CTVWOHIS ============================================================================================================ CTVQPRNT CTVSCIDX CTVSLINT CTVSVCED CTVWOINP ============================================================================================================ CTVQPROC CTVSCKED CTVSLPRS CTVSVCGT CTVWOIO ============================================================================================================ CTVQPYMT CTVSCKIO CTVSLSRT CTVSVCMT CTVWOPFM ============================================================================================================ CTVQROUT CTVSCKSC CTVSLSVC CTVSVSPL CTVWOPRC ============================================================================================================ CTVQSIO CTVSCNIO CTVSMPIO CTVTABLR CTVWOPRR ============================================================================================================ CTVQSVCC CTVSCRN CTVSMPKY CTVTABS CTVWOQUE ============================================================================================================ CTVQTAPD CTVSCSCU CTVSOSMD CTVTABS CTVWOREJ ============================================================================================================ CTVQUEIO CTVSCSSP CTVSPADF CTVTAPFM CTVWOSCH ============================================================================================================ CTVQUESP CTVSCUCM CTVSPLIO CTVTDRCV CTVWOSCR ============================================================================================================ CTVQXFER CTVSDTCP CTVSQXIO CTVTDUPL CTVWOTA ============================================================================================================ CTVQXFRS CTVSDTIO CTVSRDFM CTVTEDDY CTVWOUPD ============================================================================================================ CTVRCMSG CTVSECUR CTVSRDWR CTVTEST CTVWOVAL ============================================================================================================ CTVRCVIO CTVSEDSC CTVSRQIO CTVTHNDL CTVWOWBB ============================================================================================================
Schedule 1.21 - Page 9 CTVWRKUP CTWRKPCI CXCLBFRM CXTMPAS2 JTCCNXFL ============================================================================================================ CTVWRTLG CTWRKRSP CXCNTCNV CXUCTEXT JTCDEDIT ============================================================================================================ CTVWSCHS CTWRKXFR CXCNVEXT CXVANCTL JTCEINVC ============================================================================================================ CTVWSDMV CTWRORPT CXCNVFRM CXWKOEXT JTCEPACK ============================================================================================================ CTVXCIDS CTWRTOFF CXCNVUPK CXWKOFRM JTCFFRPT ============================================================================================================ CTVXLIST CTXFRMST CXCNVVAL CXWKOSCK JTCGDFRP ============================================================================================================ CTVXPAED CTXPACUP CXCOLEXT CXWKOUPK JTCMARLD ============================================================================================================ CTVXPAIO CTXPAEVL CXCUSEXT CXWOHCPY JTCMARUP ============================================================================================================ CTVXPAND CTXPAEX1 CXCUSFRM DBCCUSEX JTCMBNUP ============================================================================================================ CTVXPASC CTXPAEX2 CXDISCNV DBPLAGST JTCMBRLD ============================================================================================================ CTVXPLSC CTXPALOD CXDTEPAS DBPLCUST JTCMBRRP ============================================================================================================ CTVZASDU CTXPAMON CXDTPSSR DBPLHSAC JTCMBRUP ============================================================================================================ CTVZIPCV CTXPAMRG CXEVTEXT DBPLHSEQ JTCPAYFM ============================================================================================================ CTVZIPFX CTXPAMRP CXEVTFRM DBPLSTNM JTCRGRXP ============================================================================================================ CTVZIPIO CTXPAPRG CXEVTUPD DBPULCUS JTCRGSTR ============================================================================================================ CTVZIPRT CTXPARPT CXEVTUPK DESCSQSH JTCRIPFM ============================================================================================================ CTVZNCKD CTXPASUM CXEVTVAL ESPINTR JTCRIPOT ============================================================================================================ CTVZPCNV CTXPAUPD CXFINCNV EZPRINT JTCRIPRP ============================================================================================================ CTVZPINT CTXPAUPD CXFINEXT FDCIKCP JTCRPTDS ============================================================================================================ CTVZSEDT CTXPCCMG CXFINRTN FDRAITCT JTCRPTD1 ============================================================================================================ CTVZVTAM CTXSORT CXFTPINP FDRAITVX JTCSYPXL ============================================================================================================ CTWAPULL CTX100 CXHSEEXT FDRALLOC JTCTBPXL ============================================================================================================ CTWJOBLD CTX110 CXHSEFRM FDRCBCT0 JTCTRNFM ============================================================================================================ CTWOAUDT CTX150 CXHSESCK FDRCMCT0 JTCTUGBD ============================================================================================================ CTWOCUP CTX203 CXHSEUPK FDRCOMPR JTCTUGMG ============================================================================================================ CTWODATE CTX250 CXHSEVAL FDRNULL JTCXLAT2 ============================================================================================================ CTWOHUPD CTX300 CXMONEXT FDRSORT JTCXLAT5 ============================================================================================================ CTWOLOAD CTX350 CXORCCNV FDRSPOOL JTCXLCCS ============================================================================================================ CTWOPPDM CTX350A CXORDEXT FDRTOCP JTCXRFLD ============================================================================================================ CTWOPPD2 CTX360 CXPAJEXT FDRTSP JTCYCMRG ============================================================================================================ CTWOPRDR CTX370 CXPCTEND GETVOL JTLGSPLT ============================================================================================================ CTWOPRFL CTX380 CXPCTEOJ GETVOLS JTLTRHED ============================================================================================================ CTWOPRNT CTX90200 CXROWCNT G1CPC10 JTPAYEXT ============================================================================================================ CTWOPRPT CTZIPBR9 CXRTYEXT G1CPC20 JTPAYHST ============================================================================================================ CTWOPRSL CTZIPCAL CXSACEXT HGVOUTJ1 JTPMTMGR ============================================================================================================ CTWOPRT1 CTZIPDEN CXSBBFRM HPFILPGM JTPMTRPT ============================================================================================================ CTWOPRT2 CTZIPEXT CXSCHEXT HPRPTPGM JTPMTSPR ============================================================================================================ CTWOPSEL CTZNTHIN CXSEQEXT INDEX JTPMTSPT ============================================================================================================ CTWOPWSM CT3060CH CXSRTBLD INDEX JTPMTSWS ============================================================================================================ CTWOPWS2 CT3060QT CXSUBEXT INFORPT2 JTPTRANS ============================================================================================================ CTWOREAD CT3060RP CXSUBSCK INFOTES1 JTSTMCMR ============================================================================================================ CTWOSORT CXADJEXT CXSUBUPK INFOTES2 JTVASGEN ============================================================================================================ CTWOUPD CXBASECD CXSUPER0 JTCAGGMG JTVCTBLD ============================================================================================================ CTWOWRIT CXBLDEXT CXSUPER1 JTCAGGRP JTVESLOG ============================================================================================================ CTWPULL4 CXBLKEXT CXSVCEXT JTCAGGTR JTVFONKY ============================================================================================================ CTWRKLOB CXCLBEXT CXTMEPAS JTCARCCS JTVMARCP ============================================================================================================
Schedule 1.21 - Page 10 JTVMARED OPRPRINT TTATCTOT TTDSPULL TTPC0070 ============================================================================================================ JTVMARIO PDSPRINT TTATC306 TTDSRRPT TTPC0075 ============================================================================================================ JTVMBRCP PHONCODE TTATNTRY TTDUPETA TTPC0080 ============================================================================================================ JTVMBRED PROCPRNT TTBLDPAS TTDWNCBL TTPC0090 ============================================================================================================ JTVMBRIO PROCSCAN TTBLECTL TTEDTCI TTPC0100 ============================================================================================================ JTVMBRNO RNSELEXT TTBLKPAS TTESIDIN TTPC0300 ============================================================================================================ JTVMBXIO RPTCOPYS TTBLKREC TTESSCIN TTPHSPL1 ============================================================================================================ JTVMPHCP RPTCOPYX TTBRISFR TTEVTPAS TTPHWRPT ============================================================================================================ JTVMPYCP RRMATCHR TTBTPRPT TTEXSTMR TTPLMTCH ============================================================================================================ JTVMSRCH RRPULLER TTCACBIN TTFINPAS TTPSASFM ============================================================================================================ JTVNAMCD RSETVSAM TTCACBRF TTFRMTYP TTPTEDIT ============================================================================================================ JTVNAMLN SAPAMPSC TTCACBTO TTGCBOT TTPTPRNT ============================================================================================================ JTVNAMSC SAPSAPEN TTCCPCAP TTGEOEXT TTPTPROC ============================================================================================================ JTVPCFIO SAPSAPPS TTCDEDIT TTGLTPAS TTPTRPTS ============================================================================================================ JTVPYHIO SAPSAPRT TTCESACT TTGSCMT TTPULEVT ============================================================================================================ JTVSCNIO SAPSAPRU TTCESAEC TTGSCTMR TTPULRTM ============================================================================================================ KMVOUTVN SAPSAPSD TTCESGRF TTGWCONV TTPULSEL ============================================================================================================ LESTER SAPSAPSN TTCESMOD TTGWCRBU TTPULSUB ============================================================================================================ LTRSNAME SAPSAPST TTCESMOW TTGWPPV TTPUL308 ============================================================================================================ MABADATE SAPSAPSU TTCESPLY TTGWSUBS TTPURPUL ============================================================================================================ MC2PINTR SAPSAPUT TTCESPRM TTHSECPY TTROPID ============================================================================================================ MRCHREAD SCANMOD TTCESREQ TTHSEPAS TTROYPUL ============================================================================================================ MSBILLUP SCANMOD TTCESVWC TTHSESTP TTRPTCI ============================================================================================================ MSCLNYPT SETSSI TTCEXATC TTHSEUPD TTRPT6 ============================================================================================================ MSCLNYRP SISMERGE TTCLBUPD TTIRUPDT TTRTYPAS ============================================================================================================ MSCSFINT SISTOTAL TTCNREXT TTKSETRN TTSACF ============================================================================================================ MSDIRINT SPLPRGE2 TTCNTUPD TTKSOACT TTSAXSUB ============================================================================================================ MSEDTRPT SQEZALFA TTCNVPAS TTLABELS TTSBCVDM ============================================================================================================ MSEDTRSL STLOOKUP TTCNVUPD TTLABFMT TTSBCVDT ============================================================================================================ MSESPRPT TCASEBCD TTCONVPL TTLABRMT TTSCHADT ============================================================================================================ MSMS00 TCDLRCPR TTCRSYNC TTMDOBIL TTSCHBLD ============================================================================================================ MSNA00 TCDLRRPT TTCSELTR TTMDOEDT TTSCOBAL ============================================================================================================ MSPDINTR TCDLRRP1 TTCSOXLT TTMDOSTR TTSCOTRM ============================================================================================================ MSPREDIR TCSHOEXT TTCSPREX TTMONEXT TTSELCI ============================================================================================================ MSPRERSL TCSHOVIA TTCSWEEP TTOCKRSP TTSETTL1 ============================================================================================================ MSPSTNET TCSHOWAT TTCTAMDA TTORDPAS TTSICTL ============================================================================================================ MSPS00 TEST TTCTAMDB TTPAJPAS TTSPAEXT ============================================================================================================ MSRESRPT TSG@@WTR TTCTKRHS TTPARMRG TTSRPROG ============================================================================================================ MSRPSTMT TTACTNO1 TTCTKRPV TTPARTOT TTSSART ============================================================================================================ MSRPSUMS TTACTNO2 TTCTKRSE TTPASSWD TTSSECUR ============================================================================================================ MSRP00 TTADDBRK TTCVTXDT TTPAYXFR TTSTDATA ============================================================================================================ MSST00 TTADJPAS TTCYCUPD TTPC0010 TTSUBDMP ============================================================================================================ MSSYSPRN TTAMWMON TTDB2EXT TTPC0030 TTSUBPAS ============================================================================================================ MSZIPCOD TTAMWTAX TTDISRPT TTPC0040 TTSUBSEL ============================================================================================================ NAMSWTCH TTATCMRG TTDLEVNT TTPC0050 TTSUBSTP ============================================================================================================ NEWFILE TTATCPAS TTDLQEXT TTPC0060 TTSUBTAP ============================================================================================================
Schedule 1.21 - Page 11 TTSUBYTD TVIDXXFR VTS300I VXATHFMT VXCSTMT5 ============================================================================================================ TTSVCPAS TVRESTOR VTS300K VXATHSPS VXCSTMT8 ============================================================================================================ TTSW306 TVSNTRT VTS300L VXATHUSA VXCYCRPT ============================================================================================================ TTTAX110 TVUPSUBR VTS300M VXATRANS VXDALPHA ============================================================================================================ TTTBCPAS TVVASGEN VTS300O VXBACUP VXDATER ============================================================================================================ TTTELSUB TVVCPTBL VTS300P VXBCHMON VXDBPRTR ============================================================================================================ TTTEVENT TVVMONCC VTS301 VXBCHPRT VXDELQIO ============================================================================================================ TTTHEFT1 TVVOUTDC VTS310MN VXBILDAT VXDNRBLD ============================================================================================================ TTTHEFT2 TVVWOIO VTS320MN VXBILLIO VXDONBLD ============================================================================================================ TTTNVPAS TVVZPINT VTS600 VXBILLUP VXDSCACT ============================================================================================================ TTTOTRPT UPDTDATE VTS610 VXBILRPT VXEDSPLT ============================================================================================================ TTTRNLST UPMS00 VTS620 VXBLDSLS VXEDTRPT ============================================================================================================ TTTRN045 UPNA00 VTS630 VXBSPUL1 VXEFTCNG ============================================================================================================ TTTRN046 UPPS00 VTS635 VXCANRPT VXEFTMTH ============================================================================================================ TTTWHPS1 UPRPSTMT VTS640 VXCBORFD VXEFTPAY ============================================================================================================ TTTWHPS2 UPRPSUMS VTS650 VXCCDRFD VXEFTTRN ============================================================================================================ TTUNSUBM UPRP00 VTS660 VXCCDUPS VXEPMAST ============================================================================================================ TTUPREAD UPST00 VTS670 VXCCRPTS VXEXPCON ============================================================================================================ TTVCNVWS VCOMPRES VTS680 VXCCXREF VXEXPGRA ============================================================================================================ TTVDATER VGEO005 VT300MS VXCHBRPT VXEXPPUL ============================================================================================================ TTVINOS VGEO010 VT301MS VXCHBRPT VXEXTUPD ============================================================================================================ TTVINRC VGEO025 VT302MS VXCHDM2 VXFDPRM ============================================================================================================ TTVINUW VGEO040 VT303MS VXCHDM4 VXFICHE ============================================================================================================ TTVINZV VGEO050 VT304MS VXCHDM9 VXFILBLD ============================================================================================================ TTVINZ7 VGEO100 VT305MS VXCHKREO VXFILCOD ============================================================================================================ TTVOUTOS VSAMLOAD VT306MS VXCHKRFD VXFILLOD ============================================================================================================ TTVOUTRC VSAMPUT VT307MS VXCHPROM VXFILPUL ============================================================================================================ TTVOUTUW VSCMACCT VT308MS VXCHRACT VXFINDTL ============================================================================================================ TTVOUTZV VSCMEDIT VXACCRPD VXCHRGBK VXFINRPT ============================================================================================================ TTVOUTZ7 VSCMIC VXACCRPW VXCNTRY VXFUFLPL ============================================================================================================ TTVOVRID VSCMRNDX VXACTDMP VXCOFMNT VXFUFNJE ============================================================================================================ TTVRBRIO VSCMRTR VXACTNO1 VXCPM004 VXFUTDCN ============================================================================================================ TTVRENUM VTS100 VXACTSTA VXCPM006 VXGENVES ============================================================================================================ TTVSECRU VTS101 VXACTUPD VXCPM008 VXGLUPDT ============================================================================================================ TTVVWLST VTS105 VXADITAP VXCPM014 VXGNLDBD ============================================================================================================ TTVZIPFX VTS110 VXADJFMT VXCPM016 VXHDREDT ============================================================================================================ TTVZIPRT VTS110C VXADJRES VXCPM018 VXHDRED2 ============================================================================================================ TTWKOPAS VTS120 VXADKEY VXCRDRPT VXHDRED3 ============================================================================================================ TTWKOUPD VTS120N VXADMDIS VXCRTAMT VXHLDFLG ============================================================================================================ TTWOPRPT VTS200 VXALMRGE VXCSRPUL VXHLDRPT ============================================================================================================ TTZIPDEN VTS250 VXALMTCH VXCSRRPT VXHRDSUB ============================================================================================================ TTZIPEXT VTS250N VXAMREPT VXCSTMTR VXHSTUPD ============================================================================================================ TVBACUP VTS300 VXAPDECL VXCSTMT1 VXINSTAT ============================================================================================================ TVFREAD VTS300C VXASACTV VXCSTMT2 VXINTFCE ============================================================================================================ TVFREAD2 VTS300E VXATHAMX VXCSTMT3 VXINTLAD ============================================================================================================ TVFWRIT VTS300G VXATHDEC VXCSTMT4 VXIPTPOP ============================================================================================================
Schedule 1.21 - Page 12 VXITEMIO VXOQCCTP VXPRMSND VXSIPERR VXTS301 ============================================================================================================ VXKEXIT VXOQLKTP VXPRMSN1 VXSIPSHT VXTS600 ============================================================================================================ VXKIOTSQ VXOQPRTP VXPROCUM VXSISMER VXTS610 ============================================================================================================ VXKSECUR VXOQSBTP VXPROMER VXSISTOT VXTS620 ============================================================================================================ VXLEDGIO VXOQSTTP VXPROMO VXSLSRPT VXTS630 ============================================================================================================ VXLTREDT VXORDFMT VXPROMTB VXSNTRT VXTS635 ============================================================================================================ VXLTRMRG VXORDRPT VXPROPUL VXSRECAP VXTS640 ============================================================================================================ VXLTRPUL VXORDTRK VXPROSMD VXSSEDIT VXTS650 ============================================================================================================ VXLTRUPD VXOREJER VXPROSMM VXSTAPRO VXTS660 ============================================================================================================ VXLUSER VXOSKLTN VXPROSMW VXSTATR1 VXTS670 ============================================================================================================ VXMALPHA VXOSKLTP VXPRSMRT VXSTDLTS VXTTXINP ============================================================================================================ VXMATCH VXOSTXAD VXPRSTMA VXSTMEDT VXTXDLTS ============================================================================================================ VXMATSUB VXOSTXED VXPTRANS VXSTMP4A VXUDFAUD ============================================================================================================ VXMEMO VXOSTXIO VXPULCON VXSTMSRT VXUDFBLD ============================================================================================================ VXMEMPUL VXOSTXIQ VXPULMON VXSTMT4A VXUDFEDT ============================================================================================================ VXMEMUPD VXOSTXTP VXPULPEN VXSUBPUL VXUDFFE ============================================================================================================ VXMMBRED VXOSTXUP VXPULREF VXSVCIO VXUPDATE ============================================================================================================ VXMMBRUP VXOV0MS VXPULSCX VXSVCMST VXUPSUBR ============================================================================================================ VXMM012 VXOV1MS VXPUL302 VXSVCPUL VXUSATRN ============================================================================================================ VXMM020 VXOV2MS VXQTYRPT VXSVCSND VXUSGRPT ============================================================================================================ VXMONBLD VXOV3MS VXREFRPT VXSVCXCP VXUSGSND ============================================================================================================ VXMONLTR VXOV4MS VXREJPUL VXSW306 VXUSXREF ============================================================================================================ VXMONMTA VXOV5MS VXRESTOR VXTAXXCP VXVAJEDT ============================================================================================================ VXMONPUL VXOV6MS VXRNLSPT VXTAX100 VXVAJENT ============================================================================================================ VXMRGSVC VXOV7MS VXROMRPT VXTAX105 VXVALPHA ============================================================================================================ VXNKRPTS VXOV8MS VXROYADD VXTAX110 VXVANEDT ============================================================================================================ VXNMMEMO VXO300C VXROYCUM VXTAX120 VXVASGEN ============================================================================================================ VXNMONBT VXO300E VXROYFIN VXTAX260 VXVBSDSP ============================================================================================================ VXNMONPL VXO300G VXROYRPT VXTAX300 VXVBUILD ============================================================================================================ VXNOMO VXO300I VXROYSRT VXTBLPRO VXVCHDCP ============================================================================================================ VXNRFRPT VXO300K VXROYSUB VXTBLRNW VXVCKDGT ============================================================================================================ VXOCUSIO VXO300L VXRPTCPY VXTBLSVC VXVCRYPT ============================================================================================================ VXOCUSTP VXO300M VXRPTPRT VXTELEDT VXVCSRCH ============================================================================================================ VXOFFTRN VXO300O VXRPTSND VXTELINP VXVCTLF0 ============================================================================================================ VXOINSTP VXO300P VXRPT1 VXTHLCPY VXVCTYST ============================================================================================================ VXOLSRPT VXPACKIO VXRPT11A VXTMEDIT VXVDUFRP ============================================================================================================ VXOMEMAD VXPASSWD VXRPT11B VXTMPRG VXVDUPLX ============================================================================================================ VXOMEMCH VXPCTYPE VXRPT13 VXTOTSIO VXVEDREO ============================================================================================================ VXOMEMIO VXPHXREF VXRPT2 VXTPFMTR VXVEDSPL ============================================================================================================ VXOMEMTP VXPRDISC VXRPT2A VXTRINPL VXVEDTBL ============================================================================================================ VXOOLPTP VXPRECAP VXRPT2B VXTSTDTR VXVENROL ============================================================================================================ VXOOLSDR VXPREDIT VXRPT8 VXTS100 VXVENTER ============================================================================================================ VXOOLSER VXPREDON VXSCREPT VXTS101 VXVESLOD ============================================================================================================ VXOOLSTP VXPREMRG VXSEQBIL VXTS105 VXVFONKY ============================================================================================================ VXOPPRT VXPRENJE VXSEQNUM VXTS110 VXVFREAD ============================================================================================================ VXOPSTAT VXPREPAS VXSETDAY VXTS120 VXVFWRIT ============================================================================================================
Schedule 1.21 - Page 13 VXVGETNO VXZIPCAL XXTSTDTR ================================================================ VXVIPTPP VXZIPDEN XXUDFEDT ================================================================ VXVLETTR VXZIPEXT XXVAIP ================================================================ VXVLNGTH VXZIPSPA XXVAUTHI ================================================================ VXVLTRDK VXZIPSYN XXVAUTHO ================================================================ VXVLTRFM VX287MEM XXVBLKDS ================================================================ VXVLTRNM VX287PAS XXVFLECT ================================================================ VXVLTRPR VX287RPT XXVMEMIO ================================================================ VXVLTRTI VX288CCD XXVMEMO ================================================================ VXVLTRTO VX288RPT XXVSMSCM ================================================================ VXVMGHND WBCOMMON XXVSVCTX ================================================================ VXVMONBH WBLATETO XXVXBSCM ================================================================ VXVMONDS WBSDMNME XXVXISCM ================================================================ VXVMONIO WCFRMMRG XXVXUEDT ================================================================ VXVMONPY WMBMONTH XXVXUSCM ================================================================ VXVMONTL WTOR ZIPBARCD ================================================================ VXVNAMES XREFPULR ========================================== VXVNAMEV XVALMTCH ========================================== VXVNMNIO XXATHORD ========================================== VXVNOMON XXBITMAP ========================================== VXVOLSND XXCSTMT6 ========================================== VXVPHCKD XXCSTMT7 ========================================== VXVPRMDS XXCSTMT8 ========================================== VXVPROIO XXDATER ========================================== VXVPSRCH XXDONRBL ========================================== VXVRCMSG XXEPSINS ========================================== VXVREOIO XXFORMS ========================================== VXVSAVVY XXMRCHCD ========================================== VXVSBSCM XXMRCHTB ========================================== VXVSCHIT XXOTPXAD ========================================== VXVSPTAB XXOTPXDL ========================================== VXVSPZDS XXOTPXED ========================================== VXVSPZIO XXOTPXIO ========================================== VXVSTMIO XXOTPXIP ========================================== VXVSTMT XXOTPXIT ========================================== VXVSTXIO XXOTPXTP ========================================== VXVSUBIO XXOTPXUP ========================================== VXVSYSDF XXPRODUP ========================================== VXVTIMER XXPRONEG ========================================== VXVTPREO XXPROSPL ========================================== VXVTSRCH XXROYSUB ========================================== VXVTUFIO XXSCATCH ========================================== VXWPULL1 XXSIPFRM ========================================== VXWPULL3 XXSSPULL ========================================== VXZIPADI XXSSREPT ========================================== VXZIPBR9 XXTBLSVC ==========================================
Schedule 1.21 - Page 14 SCHEDULE 1.25 FDT SERVICES AND FDT CURRENT SERVICE CHARGES I. FDT Services: Account Management: The FDT account management team is the primary point of contact between CSG and FDT providing coordination, direction and assistance for problem management related to all FDT Data Center activities regarding problems and changes that impact CSG's system performance. Account management participates in ongoing discussion and project management efforts to ensure that all FDT activities are in accordance with CSG's business objectives. Automation Analyst: Automation analysts review manual computer operation procedures for possible automation using operator automation tools, primarily Computer Associate's Automate software. Automated procedures are developed to improve operator manual errors, batch cycle and transmission completion times to meet all agreed Performance Criteria. This group is the primary point of contact for problem determination and resolution regarding automated procedures. Capacity Planning: FDT's capacity planning department monitors current system resource capacity used based on projections provided by CSG for forecasting system resource utilization. The forecasts are presented to CSG as recommendations in capacity plans for CPU, DASD, TAPE indicating trends and possible estimates of how system resources and their use may change. Technical Services: Technical Services supports the System Software, CICS and OEM software (excluding the FDT Software) required by CSG to run its applications. DASD: The DASD group for FDT continually monitors DASD file placement and availability and provides first level support for all DASD related problems. This group also reviews system storage growth estimates for overall growth and special projects provided by FDT customer business units and the FDT Capacity group. Data Network Services: Data Network Services encompasses all components related to the physical equipment used for telecommunications, including, telephone company circuit orders, dial backup testing, performance of circuit outage, dial backup and telephone company escalation for telecommunications related problems and installation and design of new telecommunications equipment and network configurations. Data Network Services provides 24x7 second level support for all network problems and works continually with the Network software group to obtain the optimal level of circuit loading and network capacity for the FDT Data Center. Schedule 1.25 - Page 1 Disaster Recovery: Disaster Recovery develops and maintains plans for FDT Data Center recovery. The plans which identify all procedures and resources necessary for recovery are tested with the coordination and cooperation of CSG. Hardware and Facilities: The FDT hardware area coordinates installation, upgrades and maintenance for all physical hardware and related critical environmental support facilities (power, water coolers, air handlers, etc.) used by FDT. This area plans and coordinates all vendor required upgrades and preventative maintenance to help ensure that equipment functions in accordance with current Performance Criteria. Help Desk: The Help Desk (commonly known as the "CSC" -- Customer Support Center) at FDT provides the first point of contact for FDT internal, CSG and CSG customer calls for all system and network related problems. The CSC performs first level problem determination notifying additional technical support as needed. The CSC will provide 24x7 coverage for calls relating to the FDT Data Center and receive those related calls from CSG's internal support center. This service shall be provided as an Additional Service, provided that the parties reach agreement regarding the provision of the same. Data Security: FDT Data Security team maintains access rules for files, system resource and user id's. In addition, Data Security performs the above functions for other related OEM software requiring internal product security administration. Standards: FDT Data Center standards are supported by the FDT Quality Services area and include revisions to established standards and the preparation of proposals relating to those standards for periodic review by the FDT Standards Committee, which committee includes CSG personnel. The approved standards are then published by Quality Services for online viewing. Change Management: Change Management is supported by the Quality Services area and includes a review of all changes for the FDT Data Center. This review is performed to identify conflicts with other changes, missing required information needed for changes, and scheduling/approvals for those changes. Reports listing changes by day and week are published by the Change Management group and are reviewed during regular meetings internally and with CSG to ensure that system changes meet both FDT's and CSG's business needs. Infoman Standard Support Processes: FDT Quality Services supports administrative Infoman functions relating to the FDT standard problem and change screens and reports. Schedule 1.25 - Page 2 Mainframe Console Operations: Operations is responsible for monitoring all Systems Software and the Platform to help ensure continued service to CSG. Operations tracks CSG batch cycle and online processes and reports any Performance Criteria or key indicator impact to appropriate FDT and CSG management personnel. Operations also assists in coordinating the implementation of all approved system changes. Media Services: FDT Media Services processes, distributes and mails all output generated by CSG's applications to CSG, CSG customers and associated vendors. Media forms currently produced are microfiche, magnetic tapes and personal computer diskettes. Network Software: The Network Software (VTAM) group installs, maintains and monitors all network software components necessary to support host mainframe data communications as well as specialized hardware components. This group provides support to CSG and its customers for data file transfer, including RJE, NDM, PC download, and IP data transfer methods. This group also provides network capacity plans indicating trends based on projections provided by CSG for forecasting resource utilization. Performance: FDT Performance monitors and identifies trends, changes and bottlenecks in system workload. The performance area recommends and implements system tuning changes based on identified variances in system performance and workload. Problem Management: Problem management provides resolution and follow-up assistance relating to FDT related problems. Daily and monthly reporting is provided by problem management for tracking by the Parties. Tape Operations: Tape operations mounts and re-files tapes for all external tape drives and re-files tapes ejected from tape silos. Tape operations also performs physical maintenance related to tape media, including new tape initialization, tape cleaning, replacement of broken or damaged tapes. Tape operations also resolves tape drive and silo problems. II. FDT Service Charges: 1. Monthly Service Fees. The fees for FDT Services shall be determined as set forth below. 2. Pass-Through Expenses. The costs associated with Data Lines, Postage, Special Projects and Unshared Software are paid by FDT as payment agent for CSG, subject to Section II.3 of this Schedule 1.25. If the Parties agree that any other particular expense is to be paid directly by CSG, FDT will promptly provide CSG with a copy of the third party invoice for such expense. If the Parties agree that FDT shall act as a payment agent for CSG for any other particular expense, FDT shall pay any third party charges comprising such expense, subject to Section II.3 of this Schedule 1.25. Schedule 1.25 - Page 3 3. Reimbursable Expenses. In addition to any other payments specified in this Services Agreement and to the extent not provided for in this Schedule 1.25, CSG will pay, or reimburse FDT for, all reasonable out-of-pocket costs and expenses incurred by FDT in connection with: (a) travel specifically requested by CSG; (b) any CSG-requested document production; (c) specially CSG-requested courier deliveries; (d) CSG-required preprinted and stock forms; (e) general supplies; (f) third party charges for programming, training, seminars and similar consulting; (g) overtime, additional personnel, products and services required as a result of (i) any federal, state or local regulatory or administrative authority, (ii) third party audit, or (iii) CSG's internal or external auditors; or (h) any pass-through expenses paid on CSG's behalf pursuant to Section II.2 of this Schedule 1.25, including costs arising out of all CSG Vendor Software license and maintenance fees, as well as Software requested by CSG and not originally included in this Services Agreement. Any items set forth in this Section II.2 of this Schedule 1.25 that are not specifically requested or required by CSG shall be subject to CSG prior approval, which approval shall not be unreasonably withheld or delayed. 4. Billing. FDT shall bill CSG monthly with a single invoice for all of CSG's monthly fees and charges. The invoice shall reflect in reasonable detail the total fees and charges of CSG by FDT Service component, and shall be supported by appropriate documentation. FDT shall designate a contact person to answer questions from CSG regarding the monthly invoice. Schedule 1.25 - Page 4
"Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." - ------------------------------------------------------------------------------------------------------------------------------------ apr-dec/ jan-jun/ jul-dec/ jan-jun/ jul-dec/ jan-jun/ jul-dec/ jan-jun/ jul-dec/ jan-jun/ jul-dec/ jan-jun/ 00 01 01 02 02 03 03 04 04 05 04 05 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- - ------------------------------------------------------------------------------------------------------------------------------------ Management Fee per (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) Month ($) - ------------------------------------------------------------------------------------------------------------------------------------ CPU Rate per Mip per (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) month ($) - ------------------------------------------------------------------------------------------------------------------------------------ DASD Rate per Gbyate per (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) month ($) - ------------------------------------------------------------------------------------------------------------------------------------ Tape Rate per month ($) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ Network Services per (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) month ($) - ------------------------------------------------------------------------------------------------------------------------------------ One-Way Tape Rate ($) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ DRP rate per month ($) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ Fiche Masters ($) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ Fiche Duplicators (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) ($) - ------------------------------------------------------------------------------------------------------------------------------------ Data Lines (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ Postage (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ Special Projects (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ Unshared Software (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------
Notes: 1. Rates for the following categories (Management Fee, MIPS, Network Services, and DRP) are subject to mutual review and adjustment in January and July of each year during the Term if actual MIPS used for the previous six (6) months vary from the assumed volume of MIPS as set forth in this Schedule 1.25 by more than +(***)% or -(***)%. 2. Rates for the following categories (DASD, Tape, One-Way Tape) are subject to mutual review and adjustment in January and July of each year during the Term if actual used volumes in a respective category for the previous six (6) months vary from the assumed volumes as set forth in this Schedule 1.25 by more than +(***%) or -(***%). 3. Unshared Software used by CSG as of the Effective Date is included in the Management Fee; additional unshared software licensed by FDT at the request of CSG after the Effective Date will be charged to CSG as a reimbursable expense. CONFIDENTIAL - DO NOT DISCLOSE Schedule 1.25 -- Page 5
"Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." Assumed Volume Forecasts - ------------------------------------------------------------------------------------------------------------------------------------ jul-dec/ jan-jun/ jul-dec/ jan-jun/ jul-dec/ jan-jun/ jul-dec/ jan-jun/ jul-dec/ jan-jun/ jul-dec/ jan-jun/ 00 01 01 02 02 03 03 04 04 05 04 05 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- - ------------------------------------------------------------------------------------------------------------------------------------ CPU Mips- months (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ DASD gbyte- months (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ Tape mounts (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------ One-Way Tapes (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) (***) - ------------------------------------------------------------------------------------------------------------------------------------
Schedule 1.25 -- Page 6 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." SCHEDULE 1.43 PLATFORM DESCRIPTION -------------------- HARDWARE CONFIGURATION ---------------------- (as of December 13, 1999) ------------------------- ********* ***** ******** *** **** ********** ****** ********* ******* ******* ****** ****** * ***** ******* * * *** ** ****** * ***** ******* * * **** * ** ****** ******** ** ******* * *** ******* * *** ***** ******** ** ******* * *** ******* * - -------------------------------------------------------------------------------- **** ******* **** ******** ******** ******** ******* ****** ------------- ---------------------------------- ******* ******** *** *** **** ** ******** ************ *** ****** ** * ************ ****** **** ** ******** *** ************* ** * **** ** ****** **** *********** ***** ****** **** ********* *** *** **** **** ** * * *** ***** **** ** *** * *** **** * ******* **** * ********* **** * *** * ** ** ***** ******* * *** ** *** *********** **** * *** ****** *** ****** - -------------------------------------------------------------------------------- ****** ***** * * *** ******** ** * * ***** *** ******* * - -------------------------------------------------------------------------------- **** **** * * *** **** **** ****** ** ****** ** **** * Shared with other Business Units ** Dedicated to CSG Schedule 1.43 -- Page 1 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." SCHEDULE 1.49 SYSTEMS SOFTWARE ----------------
- ---------------------------------------------------------------------------------------------------------------- Software Software License and License and Software applied to applied to Vendor Name Product Name Release Levels SY2 VIPA - ---------------------------------------------------------------------------------------------------------------- **** ******** **** ****** x - ---------------------------------------------------------------------------------------------------------------- ****** **** - ---------------------------------------------------------------------------------------------------------------- ****** ********** **** ********* ***** x x - ---------------------------------------------------------------------------------------------------------------- *** ******** **** **** ****** x x ******************* - ---------------------------------------------------------------------------------------------------------------- ****** *********** *************** *** ******** x x - 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---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ****** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ******** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ************ ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ******* *** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ************* **** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ********** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ************ ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** *********** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ************ ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ******** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ******* ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ****** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ********* ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ********** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ************ ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ************ ** ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ********* ***** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ********* ******** x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ******** ***** ********* x x - ---------------------------------------------------------------------------------------------------------------- ******** ********** ***** **** ************* ******** x x - ---------------------------------------------------------------------------------------------------------------- ********* *********** ********* *** ***** x x - ---------------------------------------------------------------------------------------------------------------- ********* *********** **** ************ ******** x x - ---------------------------------------------------------------------------------------------------------------- ********* *********** ********* ****** **** **** x x - ---------------------------------------------------------------------------------------------------------------- ********* *********** ************ ***** x x - ----------------------------------------------------------------------------------------------------------------
Schedule 1.49 -- Page 1 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission."
- ---------------------------------------------------------------------------------------------------------------- Software Software License and License and Software applied to applied to Vendor Name Product Name Release Levels SY2 VIPA - ---------------------------------------------------------------------------------------------------------------- ********* *********** ************ *** x x - ---------------------------------------------------------------------------------------------------------------- ******* **** ******* *** ***** ***** **** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ******* *** x x - ---------------------------------------------------------------------------------------------------------------- *** ******* *** x x - ---------------------------------------------------------------------------------------------------------------- *** ******** *** x x - ---------------------------------------------------------------------------------------------------------------- *** **** *** x x - ---------------------------------------------------------------------------------------------------------------- *** **** ******** x x - ---------------------------------------------------------------------------------------------------------------- *** *** ******** ***** x x - ---------------------------------------------------------------------------------------------------------------- *** ******** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ***** ***** *********** ******** x x - ---------------------------------------------------------------------------------------------------------------- *** ****** * ******** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ** ***** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ***** ** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ***** ** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ******** *********** *** x x - ---------------------------------------------------------------------------------------------------------------- *** *** *** x x - ---------------------------------------------------------------------------------------------------------------- *** *** *** x x - ---------------------------------------------------------------------------------------------------------------- *** **** *** x x - ---------------------------------------------------------------------------------------------------------------- *** **** *** x x - ---------------------------------------------------------------------------------------------------------------- *** **** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ******** *** *** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ******** * *** x x - ---------------------------------------------------------------------------------------------------------------- *** *********** **** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ******* *** x x - ---------------------------------------------------------------------------------------------------------------- *** **** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ********* *** x x - ---------------------------------------------------------------------------------------------------------------- *** *** **** x x - ---------------------------------------------------------------------------------------------------------------- *** **** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ********* **** x x - ---------------------------------------------------------------------------------------------------------------- *** **** *** ************ **** x x - ---------------------------------------------------------------------------------------------------------------- *** ********* **** x x - ---------------------------------------------------------------------------------------------------------------- *** ***** **** x x - ---------------------------------------------------------------------------------------------------------------- *** ***** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ********* ***** x x - ---------------------------------------------------------------------------------------------------------------- ********** **** ********** *** ****** ****** x x - ---------------------------------------------------------------------------------------------------------------- ********** **** ********** ******* ****** x x - ---------------------------------------------------------------------------------------------------------------- ****** **** ********* *** x x - ---------------------------------------------------------------------------------------------------------------- ***** *** * ****** **** ******** ******* x - ---------------------------------------------------------------------------------------------------------------- ***** ****** ****** *** x x - ---------------------------------------------------------------------------------------------------------------- *** **** ********* **** ****** ********* ********* *** x x - ---------------------------------------------------------------------------------------------------------------- ********** *********** ************* **** ******* x x - ---------------------------------------------------------------------------------------------------------------- ******* *** *** ***** **** *** *** x x - ---------------------------------------------------------------------------------------------------------------- *** ********** **** **** *** ********* x x - ----------------------------------------------------------------------------------------------------------------
Schedule 1.49 -- Page 2 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission."
- ---------------------------------------------------------------------------------------------------------------- Software Software License and License and Software applied to applied to Vendor Name Product Name Release Levels SY2 VIPA - ---------------------------------------------------------------------------------------------------------------- ****** ******** ************* ************ ***** x x - ---------------------------------------------------------------------------------------------------------------- ********* ******* ********* *** x x - ---------------------------------------------------------------------------------------------------------------- ******** ******** **************** ********* x - ---------------------------------------------------------------------------------------------------------------- ******** ******** ************** ***** *** x - ---------------------------------------------------------------------------------------------------------------- ******** ******************** ******* ******* ******** *** x x **** ******** - ---------------------------------------------------------------------------------------------------------------- ******** **************** ***** ************ ******** x x **** ******** - ---------------------------------------------------------------------------------------------------------------- ******** **************** ***** *************** **** x x **** ******** - ---------------------------------------------------------------------------------------------------------------- ******** **************** ***** **** **** *** x x **** ******** - ---------------------------------------------------------------------------------------------------------------- ******* *** *** ***** x x - ---------------------------------------------------------------------------------------------------------------- ********* **** ******** *** x x - ----------------------------------------------------------------------------------------------------------------
Schedule 1.49 -- Page 3 SCHEDULE 2.3 CSG-VENDOR SOFTWARE ------------------- VERTEX SOFTWARE including: GEO CODER and VERTEX SALES TAX - calculates sales tax at the State, City, Municipality, etc. level. GROUP 1 SOFTWARE including: CODE 1, MAILSTREAM +, DESKTOP MAILSTREAM+, and ARCLIST/ONLINE/TIME SHARING - used to perform various addressing and sorting functions for mailing statements to subscribers of CSG Clients. VERSION MERGER - a software package that allows source modules to be checked out of a library and manages the merging of multiple program versions. XENOS - statement format product. PROTERM - simulates transactions and scripts for volume testing. C-CUBED, INC. - development product used to write code on a PC and then upload to the mainframe system for production implementation. Schedule 2.3 -- Page 1 SCHEDULE 2.3A FORM OF CSG-VENDOR SOFTWARE LETTER ----------------------------------- [TO BE PREPARED ON CSG LETTERHEAD] April 1, 2000 First Data Technologies, Inc. 6200 South Quebec Street. Ste. 335 Englewood, Colorado 80111 Re: Second Amended and Restated Services Agreement between First Data Technologies, Inc. and CSG Systems, Inc. dated as of April 1, 2000 ("Services Agreement") Ladies and Gentlemen: Reference is made to Section 2.3 of the above-referenced agreement. All capitalized terms not otherwise defined in this letter shall have the meaning set forth in the Services Agreement. In accordance with Section 2.3 of the Services Agreement, we hereby notify you that CSG has obtained at its sole cost and expense all rights necessary for FDT to access, operate (at or from any location where FDT will provide the FDT Services), and modify the CSG-Vendor Software to provide the FDT Services pursuant to this Services Agreement. Very truly yours, [NAME TO BE INSERTED] Schedule 2.3A -- Page 1 SCHEDULE 2.9 OPERATING PROCEDURES -------------------- ACCOUNT MANAGEMENT ------------------ - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Act as primary client contact between CSG and FDT. . Provide quality control on Performance Criteria and key indicators. . Participate in ongoing negotiation of Performance Criteria and key indicators. . Provide status and statistical reporting to help ensure Services Agreement compliance . Conduct regular quality of service review meetings. . Take part in senior-level discussions to help ensure technology concerns are closely linked to business decisions. . Identify open issues and future plans through ongoing discussions with client management personnel. .. Coordinate project management efforts with technical personnel and client management to determine that the proper balance between client priorities and FDT resources are adequately utilized. . Ensure coordination and consistency of FDT Data Center policies and performance. . Participate and represent client in change control planning and meetings. . Participate and represent client in IPL control planning and meetings. . Ensure FDT adherence to established change control and problem management methodologies for application changes. . Ensure follow-up on client issues is completed. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Coordinate FDT Data Center activity through account manager. . Ensure FDT is aware of all data processing /telecommunications implemented by CSG affecting production batch, onlines and network. . Adhere to established change control and problem management methodologies for application changes. (INFOMAN/Development calendar) . Provide representation for change control and . problem management planning meetings. . Communicate changes to business that may require alteration of Performance Criteria and key indicators. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 1 OPERATIONS AUTOMATION - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Investigate the possible elimination of all manual computer operations intervention. . Coordinate implementation of new operator automation procedures between all affected departments. . Maintain operation automation software in a dynamic environment. . Work issues pertaining to Performance Criteria using operator automation tools where applicable. . Develop automatic controls around the transmission environment that would escalate lateness or problem situations. . Propose the appropriate course of action for research, development, implementation and problem resolution of operator automation issues. . Review and resolve any problems with automated procedures. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Create change record in INFOMAN to request specific automation changes or enhancements. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 2 CAPACITY PLANNING - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Provide quarterly capacity plan . Gather resource usage for existing applications from SMF, RMF, NETVIEW, DASD monitoring software and tape. . Identify how resources may grow. . Apply resource usage and estimate CPU, DASD, Tape, FDT network components or other resources from business unit assumptions. . Estimate total resources required (CPU, DASD, and Tape). . Monitor and provide reports for trends in workloads. Recommend trending for workloads that do not have a specific estimate. . Summarize capacity plan by customer and seek approval from customer's management. . Present consolidated customer plans to FDT management. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Application capacity planner must provide information one month before end of each quarter to include information in capacity plan. . Document dates of major software implementations. . Document all assumptions which include how resource utilization will grow for identified areas. . Provide monthly business units growth. . Approve FDT Data Center capacity plan. . Create change record in INFOMAN to request specific changes or enhancements. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 3 CICS ON LINE SOFTWARE - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . CICS installation, customization, tuning, application of PTFs, table maintenance. . Support CICS disaster recovery. . Build new CICS regions as requested. . Design and implement CICS direction/workload analysis. . Monitor all production CICS regions and note exceptions. . Provide debugging and problem resolution assistance for application programming staff when requested. . Tech Services will research all region abends. . Tech Services will assist with all test, QA and acceptance test storage violations upon request. . Tech Services will research all production storage violations. . Tech Services will research host response in production issues. . Tech Services will assist with transaction abends upon request. . Tech Services will research all exceptions to Performance Criteria. . Participate in department education practices and provide workshops on materials and information obtained. (In-house, IBM external and vendor supplied). . Evaluate new products. . Apply maintenance to all vendor products as per software support list (exceptions/additions to all support are listed). . Run traces for troubleshooting application problems. . Data set contents (dumps) cleanup/copy. . Create and maintain documentation within the CICS team. . Create documentation to educate the technical services staff. . Create documentation within INFOMAN for problem understanding and future tracking. . Maintain accurate software inventory listing. . Maintain software at vendor's supported releases. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Applications (or Q/A) is responsible for its loadlibs: cleanup old versions, sizing, compression, backups. . Each application group is responsible for completing the correct paperwork for normal table maintenance along with the correct parameters for the usage of the table entry (i.e., CICS region/notification of entries that will have abnormally high usage). . Each application group is responsible for identifying correctly the requirements for new CICS regions when requesting the same, including, region size, table entries, customization, etc. . CSG should contact Applications as the first point of contact for transaction ASRA (s) and Abends. . CSG should contact Applications as the first point of contact for Short on Storage conditions. . CSG should contact Applications immediately for storage violations along with FDT Tech Services and both groups will investigate the dumps. . Interest Protsym maintenance, if any. . Evaluate host response issues that may be caused by application issues in production regions. . Use supplied monitoring tools to report on and analyze applications. . All TEAM 35 Software. . Recovery/synchronization of all on-line application data sets at DR. . AT&T Global Network Services Network: assignment of valid LU names that follow auto-install standards. . Adhere to established change control methodologies for applications changes (INFO/MAN and Develop Calendar). . Create documentation within INFOMAN for problem understanding and future tracking. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 4 DASD - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- DASD Capacity Planning - -------------------------------------------------------------------------------- 1. Review the forecast provided by CSG and determine hardware requirements. a. Analyze current DASD availability. b. If necessary, outline increased DASD to be purchased. c. Develop a proposal and distribute to CSG and conduct a formal review. 2 Execute the approved proposal. a. Order and install DASD. b. Initialize and configure DASD. - -------------------------------------------------------------------------------- File Monitoring/Maintenance: - ---------------------------- 1. Provide reporting to assist CSG with file maintenance and monitoring. Review and discuss with CSG changes necessary to enhance performance or alleviate problems and implement decided plan for change. 2. Allocate production VSAM, BDAM files as requested by CSG, determine sizing and placement from attributes in request. 3. Implement and maintain software that manages DASD at the dataset and pool level. Review with CSG changes necessary for problem resolution, enhancements, conversions or growth and implement decided plan for change. 4. Monitor all production batch and online files for extents daily and make changes to alleviate any space problems. 5. Monitor for High RBA. - -------------------------------------------------------------------------------- Monitor DASD Usage: - ------------------- 1. Review DASD pools for performance and sizing, discuss suggested changes with CSG and implement decided plan for change. 2. Research and recommend software packages. 3. Monitor freespace and CI/CA splits. - -------------------------------------------------------------------------------- Production Support: - ------------------- 1. Provide first level oncall support for DASD and storage software issues. 2. Perform weekly library compression and defrag routines, determining the applicable candidates. 3. Provide support on restore/recall problems. 4. Review and resolve any problems with DASD procedures. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- DASD Capacity Planning: - ----------------------- 1. Project quarterly DASD requirement forecasts with changes and refinements noted. a. Develop requirements for new and existing projects and special projects. 2. Distribute forecast to FDT and conduct formal review. 3. Review the proposal provided by FDT and obtain the appropriate approvals. - -------------------------------------------------------------------------------- File Monitoring/Maintenance: - ---------------------------- 1. Monitor GDG bases and sequential files for allocation, sizing, and attributes to enhance performance and prevent problems. Initiate review with FDT to discuss recommended changes and determine implementation plan. 2. Provide change control or form to FDT with necessary specifications for production VSAM and BDAM files. 3. Allocate and size production GDG bases and sequential files. 4. Implement and maintain daily cleanup jobs on test, work and GDG volumes. 5. Review extent reports. 6. Review and monitor High RBA reports. - -------------------------------------------------------------------------------- Monitor DASD Usage: - ------------------- 1. Review suggestions with FDT to determine final resolution to necessary changes. 2. Review and Monitor BDAM files. 3. Monitor freespace - -------------------------------------------------------------------------------- Production Support: - ------------------- 1. Provide first level support for applications issues. 2. Review suggestions with FDT to determine final resolution to necessary changes. 3. CMA spool, BUNDL(RMS) administration. 4. Create change records in INFOMAN to request specific changes for enhancements. 5. Review and resolve any problems. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 5 DATA NETWORK SERVICES - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Place orders with telephone companies for data circuits as required. . Maintain network availability for all client data connections. . Provide monthly dial back up line testing for all circuits having these features. . Perform monthly data line billing review and audits. Approval of all data communications data line invoices. . Order, test and install all data communications hardware associated with client orders. . Administration and monitoring of all network management systems for clients. This includes Racal NMS400 system used in the network control center. . Provide 24X7 NCC second level support for all clients. . Maintain complete inventory tracking and record keeping for all network hardware and systems. . Perform all required disaster recovery testing for each client as directed. . Enter appropriate change control records. . Review/approve change control records. . Develop and distribute all problem report and network performance information used to produce client Performance Criteria statistics. . Joint responsibility with network software group for circuit loading and network capacity planning. . Represent Telecommunications in all scheduled and required client performance/status meetings. . Vendor management of data network service providers which terminate at Millennium. . Telephone company service escalation's at all levels. . Provide client quotes for pricing of new data lines and/or other network services. . Create back up diskettes for CSG sub-client 3174/3274 controllers when requested. . Second level support for protocol converter troubles and configurations as required. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Submit telecommunications service changes/requests for all new installations, changes, deletions or information regarding data network services and price quotes. . Place orders with telephone companies for data circuits as required. . Provide internal local security and access to installed data communications equipment in specified secured areas. . Install dial back up analog lines at remote customer locations when required. . Purchase hardware such as modems and csu/dsu's when not provided by FDT. . Physically replace failed modems and communications equipment at remote sites which are CSG owned . Provide third level support for all clients. . Assist FDT personnel as needed in the local troubleshooting CSG provided communications equipment. i.e. modems, sharing devices. . Arrange for any internal wiring or connectivity as required from telecommunications demarc to DTE equipment at client sites. . Enter appropriate change control records. . Third level support for protocol converter troubles and configurations as required. . Support new client installations and/or upgrades to existing configurations. . Manage Racal (VSAT) and AT&T Global Network Services network account relationships and review monthly Performance Criteria. - -------------------------------------------------------------------------------- Example of Data Network Services Additional Services Service provided by NCC staff or Telecomm Analyst II which requires dispatch to customer locations. This includes working open problem tickets and\or supporting new installations. Schedule 2.9 -- Page 6 DISASTER RECOVERY - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Develop and maintain DR plans for initial response and recovery of the Data Center including, Disaster Recovery Management Team, Hotsite Recovery Team, Telecom Team, Client Services Team, Quality Services Team, Administration Team . Maintain Hotsite contract and administer costs to business unit . Ensure all business units have appropriate hardware to receive their application or if such hardware is not required, have such business units acknowledge such non-requirements. . Coordinate and plan hotsite DR tests for CSG. . Document the hotsite test plans, post mortem and track problem/resolution. . Assist business units where possible with their planning efforts. . Assist if requested, in business units' business recovery planning efforts . Ensure offsite storage audits are performed quarterly. . Assist business unit in their implementation of the data set tracking tool. . Restore CSG's production environment including the database data but not the production application data for hotsite testing . Develop and maintain technical recovery plans: Technical support (MVS), (CICS), Software Telecommunications, Hardware Telecommunications, Operations support, Quality Services . To recover the system, the following areas shall have the following responsibilities: . MVS: recover the operating system with the appropriate software . DASD: provide full volume backups of System, and CSG Applications Software volumes for CSG. Also maintain the VSAM allocation process. At time of disaster or testing, restore the system volumes, CSG Application Software volumes and execute the VSAM allocation process . CICS: recover the CICS software . Software/Hardware/ Telecom: recover the subscribed to telecom network - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Supply hotsite testing requirements in the form of goals and objectives . Document and maintain the application recovery plan for the product . Participate in the hotsite recovery testing by supporting the applications and their clients . To backup and send offsite, CSG Application Data . Recover application data for testing and in the event of a disaster (which includes the forward recovery of CICS.) . If there is any additional data that CSG wants FDT to be responsible for backing up and recovering for disaster recovery, CSG shall submit these requirements in writing to FDT, and FDT must agree in writing to the additional requirements. . Develop, maintain and test its business recovery plans - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 7 HARDWARE AND FACILITIES - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Coordinate the installation and/or upgrade of the requested FDT Data Center hardware with the vendor and all business units serviced by the FDT Data Center. . Coordinate the installation and/or upgrade of the FDT Data Center hardware microcode, to current and supported levels. . Evaluate vendor hardware related to the operations of the FDT Data Center and the business unit needs. . Maintain a current floor plan of the FDT Data Center. . Maintain configuration documentation related to the hardware installed in the FDT Data Center. . Manage and maintain the power plant which support the FDT Data Center and will provide a configuration to support the continuous 24x7x365 operation of the FDT Data Center businesses. . Manage problem and change records within INFOMAN. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Determine hardware requirements and submit a formal request to FDT quarterly. . All requests for hardware and/or facility changes require 60 days prior written notice to FDT. . Approve change requests on a timely basis for hardware improvements. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 8 HELP DESK - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- - -Main point of contact for CSG calls regarding online software, system software and network related issues for CSC, SMS, TVRO, VIP and ACSR products. - -Responsible for resolving first level data communications, hardware and software related issues. - -Responsible for performing hardware dispatch and follow-up. - -Responsible for coordinating FDT Data Center resources to resolve second level and higher online software, system software and network related issues. - -Responsible for notifying CSG resources and assisting as required/requested to resolve second level application software, Addressability, ACSR and new customer installation related issues. - -Responsible for providing critical situation notifications to CSG management. Notifications to be performed on a 7x24 basis. - -Responsible for providing 30 minutes status notifications throughout the life of all critical situations (life of problem means the time the CSC is aware of a critical problem until the impact to client has ceased). This notification is performed on a 7x24 basis. - -Responsible for providing sensitive account problem notifications to CSG management. - -Responsible for providing monthly ACD statistical reports showing daily calls offered, calls answered and average speed of answer. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- - -Main point of contact for all external customer calls regarding online software, system software, network related issues, and all CSG application software issues. - -Responsible for coordinating and resolving new customer installation issues. - -Responsible for coordinating and resolving first, second and higher level application software, addressability and other external customer interfaces. - -Responsible for coordinating and resolving CSG network related issues. - -Responsible for escalating issues with the FDT processing platform to the FDT help desk. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 9 MEDIA SERVICES - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Responsible for the creation of microfiche and distributing the same to CSG and its customer base. . Responsible for mailing out all CSG customer CAD0440/CBD0440 selects. (Tape, diskettes and cartridges) . Responsible for all media conversion (Tape to diskette) . Responsible for processing/distributing special tape requests. . Responsible for labeling and entering into Roscoe all conversion tapes received from the customer. . Responsible for providing monthly Media statistical reports showing volumes processed, distributed and accuracy. . Review and resolve any problems with Media processes. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Responsible for providing update/current distribution list for all microfiche and special tape mailings 14 days prior to implementation . Main point of contact for all CSG external customer calls and questions regarding inquiries/problems with distributed microfiche, conversion, CDROM, and tapes. . Responsible for coordinating and implementing all customer conversions. . Responsible for approving change requests. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 10 MVS SYSTEMS SOFTWARE - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Install, maintain, customize and support all mainframe operating systems and associated program products. . Perform diagnostic and consulting services to the business unit. . Provide product documentation for the FDT Data Center on operational aspects of installed products. . Investigate and recommend new system software. . Maintain accurate software inventory listing. . Maintain software at vendor's supported releases. . Participate in INFO management procedures to assist in problem tracking and documentation. . Adhere to established change control methodologies for changes (INFO/MAN and Develop Calendar). - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Request product trials and utilize product request process. . Assist in testing of new releases and upgrades of all software. . Support administration of third party software as agreed. . Adhere to established change control methodologies for applications changes (INFO/MAN and Develop Calendar). - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 11 NETWORK SOFTWARE - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Maintain high network availability/stability. . Perform Network customization, monitoring and tuning. . Install, customize and maintain network and network related software products. . Problem determination and resolution of network and network related software product issues. . Install, customize and maintain transmission software products. . Problem determination and resolution of transmission software product issues. . Assist client with client and sub-client transmission software/hardware installation and support issues. . Assist in installation and support of network hardware components (including 3745, CIP, SPC, Netlink solutions). . Maintain accurate software inventory listing. . Perform Network disaster recovery planning and support. . Design and implement network direction/workload analysis. . Provide consulting services for software product acquisition and evaluation. . Provide consulting services for network planning and design. . Participate in the monitoring, tuning, capacity planning and problem determination/resolution issues with external connected networks and VAN providers. . Provide debugging and problem resolution assistance for client representatives when requested. . Assist with network connectivity and access issues. . Run traces to assist in troubleshooting network and application issues. . Research exceptions to Performance Criteria. . Create and maintain network documentation to assist the technical services and support staffs in troubleshooting and providing client service. . Participate in interdepartmental education and provide seminars on monitoring and first level debugging procedures. . Provide available network performance and availability reports as requested. . Participate in INFO management procedures to assist in problem tracking and in change control tracking/documentation. . Provide Network capacity analysis on a monthly basis based on input from CSG. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Determine Network software requirements and submit formal requests to FDT staff. . Test and evaluate software and network installations to insure requirements are satisfied. . Participate with FDT staff in monitoring network resources. . Use monitoring tools to report on and analyze network resources. . Provide feedback to assist in customization and tuning efforts. . Interface with and provide first level troubleshooting for sub clients. . Assist sub clients with transmission software selection, installation and support. . Primary interface with telecommunications access providers on network definitions, problem determination and resolution. . Primary support for client connections to SP2. . Provide forecasts to assist in Network capacity analysis. . Adhere to established INFO management procedures for problem notification and tracking of network, transmission and related issues. . Adhere to established INFO management change control procedures in addition to the development calendar for network, transmission and related change implementations. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 12 STANDARDS - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- Standards Co-maintain data processing standards by: . Submitting additions, changes and deletes through established FDT procedures. . Preparing and distributing an agenda for the monthly Standards Committee meeting, consisting of all proposals received by Quality Services by the monthly cutoff date. . Chair the Standards Committee meeting. . Quality Services will publish, either in hardcopy format or online format, using the BookManager product, updates approved by the Standards Committee. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- Standards Co-maintain data processing standards by: . Submitting additions, changes and deletes through established FDT procedures. . Attend monthly Standards meetings . support any proposals submitted to the committee - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 13 CHANGE MANAGEMENT - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Provide Standard INFOMAN Support. . Provide Standard Reports to support scheduled meetings. . All changes are opened on FDT's INFOMAN System. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Submit all request for services through INFOMAN for all FDT Data Center Activities, including: System Software (MVS, CICS) Hardware Network Requests Operations Requests Security Storage Management Media Requests Capacity Performance Network (VTAM) Requests Installation of New System Products INFOMAN Panel Change Requests - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 14 INFOMAN STANDARD SUPPORT PROCESSES - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- Administrative Functions . Set up userid by specific privilege classes within business unit controls. . Store employee data for interested party access. Problem Tracking . Collection of production identified job abend data. . Log problems regarding end users that appear to be caused by FDT support groups: Systems area Security Operations INFOMAN DASD management Capacity management performance management Change Tracking . Allow logging of request for service from each business unit to support areas of FDT: Systems' areas Security Operations INFOMAN DASD management Capacity management Performance management - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- Administrative Functions . Request changes to userid by specific privilege classes for problem record administration and for approvers on change records. Problem Tracking . Collection of production identified job abend data. . Review and closure of problem records assigned to CSG application areas. . Participation in Problem Review meetings. Change Tracking . Create and approve change requests for service from FDT support areas. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 15 MAINFRAME CONSOLE OPERATIONS - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- . Monitor system tasks . Monitor system performance . Monitor and adjust cycle progress based upon key indicator jobs defined by CSG . Notify FDT management and primary business unit contact of problems impacting Performance Criteria and key indicator jobs . Monitor system hardware . Monitor computer room environmentals . Track and act upon approved changes assigned to operations including IPL's . Process approved special requests . Perform system level control functions as required . Process batch cycle as defined in CA-7 and notify cycle support of discrepancies/problems identified in the process . Provide 24x7 console coverage . Monitor CAD1 transmissions during off hours . Perform off hour job restarts based on CSG provided documentation or verbal instructions from cycle support groups . Perform CA7 scheduling for non-application related jobs - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Maintain list of unique business unit system tasks to be monitored . Maintain list of key indicator jobs and latest completion time without impacting Performance Criteria . Maintain list of contacts and phone numbers . Maintain Performance Criteria and key indicator expectations via account manager . Maintain escalation and notification procedures . Maintain job restart documentation and procedures . Provide operations with cycle run instructions . Perform all CA7 scheduling functions for application related jobs - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 16 PERFORMANCE - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- PERFORMANCE . Provide standard reports that identify changes in workloads. . Monitor reports to ensure Performance Criteria and key indicators are met, and recognize workload variances. . Identify application/systems tuning opportunities. . Provide manpower for systems tuning when Performance Criteria and key indicators are not being met. . Assist in trouble shooting for host response issues. . Provide input to problem records and implement changes as requested. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- . Complete application design and maintenance. . Identify application tuning opportunities. . Implement application tuning changes. . Identify business elements for Performance Criteria and key indicators . Provide manpower for application tuning when Performance Criteria and key indicators are not being met. . Adhere to established change control methodologies for applications changes (INFO/MAN and Develop Calendar). - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 17 PROBLEM MANAGEMENT - -------------------------------------------------------------------------------- FDT - -------------------------------------------------------------------------------- All problems are opened on FDT's Infoman system by FDT or CSG personnel. - -------------------------------------------------------------------------------- FDT will respond to, update and resolve any records assigned to FDT Data Center departments. - -------------------------------------------------------------------------------- Performance Criteria exceptions: FDT will compile exception information for Performance Criteria records. FDT and CSG will negotiate accountability if necessary. - -------------------------------------------------------------------------------- FDT will provide scheduled and adhoc reporting from data on the FDT Infoman database. - -------------------------------------------------------------------------------- FDT Problem Management Department will provide the account manager with problem detail information from the Infoman database. The account manager will provide CSG with any requested summaries, memos, post-mortems, etc. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CSG - -------------------------------------------------------------------------------- All problems are opened on FDT's Infoman system by FDT or CSG personnel. - -------------------------------------------------------------------------------- CSG will respond to, update and resolve any records assigned to CSG departments. - -------------------------------------------------------------------------------- CSG will ensure that any Performance Criteria records assigned to them will contain accurate resolution and duration information. - -------------------------------------------------------------------------------- CSG will have access to the FDT Infoman database for data retrieval, reporting, etc. - -------------------------------------------------------------------------------- CSG will provide problem summary information whenever the recipient is a CSG client. - -------------------------------------------------------------------------------- Schedule 2.9 -- Page 18 PRODUCTION SCHEDULING - ------------------------------------------------------------------------------- FDT - ------------------------------------------------------------------------------- . Maintain and follow problem flow via INFOMAN and escalate per problem escalation procedures. . Schedule and implement production change, including new business acquisitions. . Support operations in maintaining and verifying production processing. . Support operations/tape library in maintaining TMS batch processing. . Document departmental procedures . Maintain CA-7 automated scheduler jobs and parameters for system level and operations processing. . Provide abend restart functions where requested. . Document and escalate processing problems according to escalation procedures. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CSG - ------------------------------------------------------------------------------- . Add, delete and update jobs in CA-7 scheduler. . Add, delete and update all scheduling parameters with the exception of the security macro. . Create change record in INFOMAN to request adds/deletes to security macro . Provide restart services for Cable processing. - ------------------------------------------------------------------------------- Schedule 2.9 -- Page 19 DATA SECURITY - ------------------------------------------------------------------------------- FDT - ------------------------------------------------------------------------------- . Upgrade or install fixes to the RACF* software. (*) . Maintain RACF* databases. . Install/maintain external security interfaces between RACF and other software. . Maintain internal security for other software, such as: . CA7 (*) . NETVIEW (*) . INFOMAN (*) . ROSCOE . QMF (*) . VMANCSG . NETSPY . NDM . TSO. . Reset passwords, suspend or resume userids for FDT personnel. . Maintain RACF* userids: create, modify, delete. . Reset passwords and/or resume userids for CSG clients and personnel on RACF* . Maintain CSG client and personnel on RACF.* . Maintain DSN/RESOURCE access rules under RACF.* . Delete datasets/aliases when user id are deleted. . SDSF system access . Interface with CSG data security administrator. . Respond to audits with respect to FDT responsibilities. * NOTE: RACF implementation is scheduled for production on SY2 and VIPA in second quarter 2000 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CSG - ------------------------------------------------------------------------------- . Maintain internal security of other products: RMS/ESF (BUNDLE). . RACF* for RMS/ESF (clients only): create, modify, delete. . Respond to audits with respect to CSG responsibilities. . Reset passwords and/or resume userids for CSG clients and personnel on RACF*. . Administer all Team 35 Software security. Schedule 2.9 -- Page 20 TAPE OPERATIONS - ------------------------------------------------------------------------------- FDT - ------------------------------------------------------------------------------- . Monitor all external tape drives for mount activity. sent offsite. . Setup, maintain and support tape vault patterns offsite disaster recovery activities. . Pull all offsite backup tapes from offsite storage . Refile all returning backup tapes from offsite storage. . Refile tapes manually loaded (round reel and cartridge). to RDS file. . Refile all tapes ejected from the tape silo's throughout the day. . Enter scratch tapes, cleaning cartridges and requested input tapes into the tape silo's . Initialize new tapes both round reel and cartridge (inhouse and oneway tapes). . Clean and/or replace broken or damaged tapes with I/O errors for inhouse and microfiche. . Retrieve and deliver all microfiche and Media Support tape requests for CSG. . Publish monthly reports for tape utilization both automated and manual. . Monitor, clean and resolve tape drive and silo problems. . Provide 24 x 7 tape coverage for CSG. . Analyze daily tape operations for possible improvements. . Perform updates to TMS (i.e. extend and/or expire tapes). . Resolve problem tickets involving tape library and tape operations. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- CSG - ------------------------------------------------------------------------------- . Maintain master document of what application files are sent offsite. . Provide written documentation when requesting offsite disaster recovery tape vaulting. . Maintain a master list of retention periods for all tapes created using RDS (Retention DataSet). . Provide written documentation when requesting changes to RDS file. . Use tape file stacking whenever possible. . Minimize tape drive allocation during job processing. . Migrate small datasets to disk whenever possible. . Provide change requests for modifying tape activities. - ------------------------------------------------------------------------------- Schedule 2.9 -- Page 21 SCHEDULE 2.10 CSG BATCH JOB TARGETS --------------------- See attached listing. All times listed are Mountain Time. Schedule 2.10 - Page 1 Critical path completion time means the end time of CAD0350, which as of the Effective Date, completes at approximately 05:30.
- ----------------------------------------------------------------------------------------------------------------------------------- DESCRIPTION DEFINITION TARGET - ----------------------------------------------------------------------------------------------------------------------------------- 1. Online System Updated: CCS CAD0139, Cycle A; CBD0139, Cycle B Completed by 04:15 Cycle A: CAE9000* to CAD0139 and/or Cycle B: /or Cycle B: CBE9000* to CBD0139 to be completed within a 1 hour outage M-F; Cycle A: CAE9000* to CAD0139; Cycle B: CBE9000* to CBD0139 to be completed within 2 hour outage Sat/Sun. Extended IPLs are the exception. - ----------------------------------------------------------------------------------------------------------------------------------- 2. Online System Updated: SMS VID0139 Completed by 04:30 - ----------------------------------------------------------------------------------------------------------------------------------- 3. File Availability: CCS This covers the availability of All CCS files available 23 hours a day, from production files for CCS. 04:30 to 03:30, 98.2% of the total monthly hours. File availability is measured at the completion of CAD0139/CBD0139 and will encompass downtime of CICS and the operating system. - ----------------------------------------------------------------------------------------------------------------------------------- 4. Daily Reports Sequence (CADSEQ11/CBDSEQ11), house and In the print queue by 04:30 work order (CADHWRK1/CBDHWRK1) and converter (CADCPMD1/CBDPMD1) reports available for printing at customer's location. - ----------------------------------------------------------------------------------------------------------------------------------- 5. Work orders Cycle A: CAEWPT2; Cycle B: CBEWTP2 Completed by 02:00 - ----------------------------------------------------------------------------------------------------------------------------------- 6. WPT Transactions Cycle A: CAEWPTIB, CAEWPTIC, CAEWPTID Completed by 1-1/4 hours after scheduled beginning time. Scheduled beginning time is Cycle B: CBEWPT1B, CBEWT1D 05:30, 09:00, 12:00, 14:00, and 17:00 - ----------------------------------------------------------------------------------------------------------------------------------- 7. Weekly Reports CAW7000 CAW7000 completed by 18:00 on Saturday CBW7000 CBW7000 completed by 18:00 on Saturday - -----------------------------------------------------------------------------------------------------------------------------------
Schedule 2.10 - Page 1
- ----------------------------------------------------------------------------------------------------------------------------------- DESCRIPTION DEFINITION TARGET - ----------------------------------------------------------------------------------------------------------------------------------- 8. Monthly Financial Reports A. CAM7031 and CBM7031 A. Completed by 18:00 on the 22nd of the month. B. Financial Tapes B. Tapes mailed within 48 hours after creation, 99.9% of the time. - ----------------------------------------------------------------------------------------------------------------------------------- 9. Monthly Statistics Reports Completes the following statistics reports: CAM7062 and CBM7062 completed by 19:00 on the CPMM0004, CPRM0006, CPMM308, CAM7062 23rd of the month. and CBM7062. - ----------------------------------------------------------------------------------------------------------------------------------- 10. Online Statements - CAD0350, Cycle A;CBD0350, Cycle B Completed by 05:30 Information Available - ----------------------------------------------------------------------------------------------------------------------------------- 11. Statements Available to the CAD0332, CAD0336, Cycle A; Completed by 07:30 CSG Production Facility CBD0332, CBD0336, Cycle B (Legacy & ESP) - ----------------------------------------------------------------------------------------------------------------------------------- 12. Daily Vantage Cycle Extracts UL04VEND Completed by 04:00 - -----------------------------------------------------------------------------------------------------------------------------------
Schedule 2.10 - Page 2 SCHEDULE 2.11 DISASTER RECOVERY PLAN ---------------------- 2.11.1 Data Processing. If FDT declares the existence of a complete, unplanned interruption or inaccessibility to the FDT Data Center used to provide the FDT Services (a "Declared Disaster"), FDT shall make arrangements for the resumption and continuation of vital data processing services to CSG (the "Plan"). The resumption and continuation of vital data processing services shall be provided at the Comdisco Recovery Center in North Bergen, New Jersey, using off-site back-up copies of critical application systems data sets in accordance with and subject to the terms of governing contracts. Vital services shall include those data processing services which are necessary for the survival of the business and where there would be a substantial cost or expense associated with the loss of the data processing services for which there is no satisfactory backup procedure, and for which an outage cannot be tolerated for more than forty-eight (48) consecutive hours. The vital data processing services to CSG shall be made available by means of communication between North Bergen, New Jersey, and selected terminals in FDT's current network. The capacity of the Comdisco facility currently has the capacity to enable FDT to run vital data processing services for CSG for up to six (6) weeks and for a "Coldsite" facility for up to six (6) months. In the event of a Declared Disaster, FDT's Disaster Recovery Management Team (DRMT) shall immediately assemble and determine whether to establish processing at the Comdisco site. In the event that it is determined that vital services can be resumed within forty- eight (48) consecutive hours after FDT announces a Declared Disaster, the DRMT will direct the resumption of such vital services, and will not initiate the transfer of processing to Comdisco. If it is determined that vital services cannot be resumed within forty-eight (48) consecutive hours after FDT announced the Declared Disaster, the DRMT shall immediately begin the implementation of the Plan, including the initiating of procedures for the declaration of disasters under applicable disaster recovery contracts and the establishment of processing at the disaster recovery site in accordance herewith. FDT shall recover the Systems Software and make it available to CSG within 18 hours after a Declared Disaster. As soon as processing is established at the disaster recovery site, a determination will be made as to whether additional equipment will be needed at the North Bergen site to adequately handle longer term load requirements. Extra data storage devices, tape drives, communication gear, and even central processing mainframes (CPU's) can be acquired and installed in a matter of hours or days to handle the anticipated load during a protracted remote-processing period. Operation of the Comdisco remote facility will be handled entirety by FDT personnel. A Disaster Recovery Management Team (DRMT), composed of management in each of six (6) functional areas, will direct travel to North Bergen and to Denver Business Recovery Center, their staff at the earliest opportunity to set-up the normal FDT Data Center environment. The Hotsite Restoration Team (HRT), will then operate the Comdisco data center for approximately the first forty-eight (48) hours and be relived by a second wave of FDT personnel who will take over and run the data center. The HRT and CSG conduct an annual disaster recovery test. Schedule 2.11 - Page 1 Listed below is a summary of actions contemplated by the Plan: Operations Manager contacts the Executive Vice President of FDT Data Center Operations that a potential disaster has occurred. The EVP will contact all direct reports and the Disaster Recovery Coordinator. The DRM Team will perform a damage assessment and report a recommendation. If the recommendation is to declare a Disaster, the EVP must contact the EVP of ISD for approval. Declare a Declared Disaster by contacting the Hotsite and off- site vendors. Notify and mobilize teams to appropriate locations. Reload system at Hotsite by restoring system software and customer data. Activate back-up telecommunications lines and make necessary hardware/software connections. Activate CICS regions and perform required operational functions. If necessary, prepare to use Coldsite if outage is greater than six (6) weeks. Order, install and test hardware at Coldsite. Migrate FDT Data Center to Coldsite. Rebuild FDT Data Center by ordering, installing and testing hardware at such location. Migrate data center to FDT Data Center. Write management summary. During the Term, FDT shall provide CSG with additional information concerning the Plan as may be reasonably required in writing by CSG, and which may require prior approval of Comdisco. FDT reserves the right to change the Plan from time-to-time during the Term, provided that any such change shall not degrade the quality of the Plan in any manner which has a material, adverse impact on the data processing services provided hereunder. Notwithstanding the foregoing, during the Term, CSG may instruct FDT to initiate the processes set forth in the Plan that occur prior to the declaration of a Declared Disaster for CSG processing only if the operating system incurs an outage greater than four (4) hours. Notwithstanding the foregoing, CSG may also instruct FDT to declare a Declared Disaster for CSG processing only if the operating system incurs an outage greater than twelve (12) hours. If CSG instructs FDT to declare a Declared Disaster, CSG shall pay to FDT FDT's insurance deductible relating to such Declared Disaster (not to exceed Schedule 2.11 - Page 2 $50,000 per instruction), provided, that if FDT subsequently makes a Declared Disaster for multiple clients, such deductible shall not be the responsibility of CSG. During the Term, CSG shall provide FDT with ninety (90) days advance written notice of changes required by CSG relating to the hardware and network to be used in connection with a Declared Disaster so that FDT may coordinate such changes with Comdisco. Schedule 2.11 - Page 3 SCHEDULE 2.13 PERFORMANCE CRITERIA -------------------- See attached list. All times listed are Mountain Time. Schedule 2.13 - Page 1 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission." FDT has no control or responsibility of how Application Software and FDT Software uses the environment. Application Software, FDT Software, hardware at client sites, client provided networks and hardware, use of DB2, CICS transactions and batch scheduling is the responsibility of CSG.
CATEGORY DEFINITION PERFORMANCE CRITERIA REPORTED BY MEASUREMENT - --------------------------------------------------------------------------------------------------------------------------------- 1. Operating System This covers the host The operating system Data Center Report daily and Availability computer hardware and will be available detail exceptions system's software 24 hours a day, (***)% (Operations) monthly. of the time, excluding scheduled downtime. -Maintenance window: (02:30-04:00) -1 FDT initiated IPL per month (Hardware/Software) (12 annually) -1 FDT Quarterly extended IPL outage (02:30-06:30) with 30 day prior notification (4 annually) -2 FDT alternate IPL's to be coordinated with CSG (Hardware/Software) (2 annually) -IPL's required for CSG application will be additional. -Non IPL weekends- FDT/CSG will mutually agree upon changes to be implemented, and which will include install timeframes outside the 02:30-04:00 Sunday window. - -----------------------------------------------------------------------------------------------------------------------------------
Schedule 2.13 - Page 1 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission."
CATEGORY DEFINITION PERFORMANCE CRITERIA REPORTED BY MEASUREMENT - --------------------------------------------------------------------------------------------------------------------------------- 2. CICS Availability This covers The online regions will be Data Center Report daily and availability to all available 24 hours per day, detail exceptions production online (***)% of the time, (Operations) monthly regions excluding scheduled downtime. -CICS regions are cycled nightly with batch jobs Cycle A, CAD0127; Cycle B, CBD0127, -A minimum of 15 minutes will be assessed upon any unscheduled region cycle *CSG must identify unscheduled CICS recycle timeline. - ----------------------------------------------------------------------------------------------------------------------------------- 3. Host Response Time Processing time for Average (***) seconds during Data Center Report and detail task by the CPU. each 15 minute interval (an (Capacity Planning) exceptions monthly. Measure the host "Interval") from 06:00 to response time for 18:00 Monday through Saturday, production CICS it being understood that FDT regions. Excluding shall be permitted (***) DB2. Intervals per calendar month to exceed this Performance Criteria, calculated as follows: (***) or more Intervals exceeding an average of (***) seconds shall be deemed to be 1 violation of this Performance Criteria, provided that each such Interval violation exceeding an average of (***) seconds relates to the same issue. -if an issue arises that causes an Interval to exceed an average of (***) seconds, and FDT creates a remedy for such issue, CSG and FDT shall confer promptly regarding the implementation of such remedy. If CSG does not permit FDT to implement the remedy, any subsequent Interval that exceeds an average of - -----------------------------------------------------------------------------------------------------------------------------------
Schedule 2.13 - Page 2 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission."
CATEGORY DEFINITION PERFORMANCE CRITERIA REPORTED BY MEASUREMENT - --------------------------------------------------------------------------------------------------------------------------------- (***) seconds as a result of FDT not being permitted to implement such remedy shall not be deemed to be a violation of this Performance Criteria. - if one or more Intervals fails to meet this Performance Criteria due to the way in which CSG conducts its business, such failures shall not be deemed to be a violation of this Performance Criteria. - --------------------------------------------------------------------------------------------------------------------------------- 4. User Response Time Measure the user (***) seconds for the Data Center Report and detail for Direct Connect response time (host 95th percentile. (Capacity exceptions monthly Clients +network) for clients Planning) directly attached to the FDT host. - --------------------------------------------------------------------------------------------------------------------------------- 5. Network Uptime by Measure the network (***)% availability, Data Center Report and detail Controller for Direct availability which excluding scheduled (Network) exceptions monthly. Connect Clients includes front end downtime. processors, modems, and data circuits for all controllers directly connected to the FDT host. - --------------------------------------------------------------------------------------------------------------------------------- 6. Media Service Measure the (***)% of tapes and Data Center Report and detail turnaround diskettes will be shipped Media Services) exceptions monthly Tape/Diskette percentage of to client within 48 hours of receipt by Media Services. - ---------------------------------------------------------------------------------------------------------------------------------
Schedule 2.13 - Page 3 "Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission."
CATEGORY DEFINITION PERFORMANCE CRITERIA REPORTED BY MEASUREMENT - --------------------------------------------------------------------------------------------------------------------------------- Turnaround magnetic media items that are (***)% of conversions a. Selects and Specials received by Media will be entered into the Services. system within 48 hours of b. Conversions receipt by Media Services. Exception situations will be handled using commercially reasonable efforts. - --------------------------------------------------------------------------------------------------------------------------------- 7. Media Measure the a. Daily Data Center Report and detail percentage of Media Services) exceptions monthly Services Microfiche microfiche items (***)% of daily microfiche Turnaround shipped to clients. mailed within 48 hours of tape receipt by Media Services. a. Daily b. Weekly b. Weekly (***)% of weekly microfiche mailed within 72 hours of tape receipt by Media Services. c. Monthly c. Monthly (***)% of monthly microfiche mailed within 14 days of tape receipt by Media Services. - ---------------------------------------------------------------------------------------------------------------------------------
Schedule 2.13 - Page 4 SCHEDULE 2.14 CONFIDENTIALITY AGREEMENT ------------------------- See attached. Schedule 2.14 - Page 1 CONFIDENTIALITY AGREEMENT This Confidentiality Agreement, made this ____ day of ___________, 200__, is by and between CSG Systems, Inc., 7887 E. Bellview Avenue, Englewood, Colorado 80111 ("CSG"), and _______________________________ (the "Participant"). RECITALS A. Participant desires to review an audit of CSG's electronic data processing environment. B. In connection with these discussions, certain confidential and proprietary information regarding CSG may be disclosed to the Participant to permit the review by Participant. C. CSG desires to establish the terms under which it will disclose certain confidential and proprietary information. The parties agree as follows: 1. Confidential Information. Confidential Information shall mean: (A) any data or information that is competitively sensitive material, or secret, and not generally known to the public, including, but not including to, an audit of FDT's electronic data processing environment for services provided to Participant by Cable Services Group, Inc.; (B) any scientific or technical information, design, process, procedure, formula, or improvement that is commercially valuable and secret in the sense that its confidentiality affords CSG a competitive advantage over its competitors; and (C) all confidential or proprietary concepts, documentation, reports, data, specifications, computer software, source code, object code, flow charts, databases, inventions, information, know-how, show-how and trade secrets, whether or not patentable or copyrightable. Confidential Information includes without limitation, all documents, inventions, substances, engineering and laboratory notebooks, drawings, diagrams, specifications, bills of material, equipment, prototypes and models, and any other tangible manifestation of the foregoing which now exist or come into the control or possession of the Participant. 2. Confidentiality Obligations. Except as expressly authorized by prior written consent of CSG, the Participant shall: (A) limit access to any Confidential Information received by it to its employees who have a need-to-know in connection with the evaluation of the potential or ongoing business transaction, and only for use in connection therewith; (B) advise its employees having access to the Confidential Information of the proprietary nature thereof and of the obligations set forth in this Confidentiality Agreement; Schedule 2.14 - Page 2 (C) take appropriate action by instruction or agreement with its employees having access to the Confidential Information to fulfill its obligations under this Confidentiality Agreement; (D) safeguard all Confidential Information received by it using a reasonable degree of care, but not less than that degree of care used by the Participant in safeguarding its own similar information or material; (E) use all Confidential Information received by it solely for purposes of evaluating the potential or ongoing business transactions with CSG and for no other purpose whatsoever; (F) not disclose any Confidential Information received by it to third parties; and (G) not disclose the existence of the discussions to any third party. Upon the request of CSG, the Participant shall surrender to CSG all memoranda, notes, records, drawings, manuals, records, and other documents or materials (and all copies of same) pertaining to or including the Confidential Information. Upon the return of such materials, the Participant agrees to certify, in writing, that all of the foregoing materials have been surrendered to CSG. 3. Exceptions to Confidentiality. The obligations of confidentiality and restriction on use in Section 2 shall not apply to any Confidentiality Information that the Participant proves: (A) was in the public domain prior to the date of this Agreement or subsequently came into the public domain through no fault of the Participant; (B) was lawfully received by the Participant from a third party free of any obligation of confidence to such third party; (C) was already in the possession of the Participant prior to receipt thereof, directly or indirectly, from CSG; (D) is required to be disclosed in a judicial or administrative proceeding after all reasonable legal remedies for maintaining such information in confidence have been exhausted including, but not limited to, giving CSG as much advance written notice of the possibility of such disclosure as practical so CSG may attempt to stop such disclosure or obtain a protective order concerning such disclosure; or (E) is subsequently and independently developed by employees, consultants or agents of the Participant without reference to the Confidential Information disclosed under this Agreement. 4. Rights in Confidential Information. Except as specifically provided for herein, this Agreement does not confer any right, license, interest or title in, to or under the Confidential Information to Participant. Except as specifically provided for herein, no license is hereby granted to Participant, by estoppel or otherwise under any patent, trademark, copyright, trade secret or other proprietary rights of CSG. Title to the Confidential Information shall remain solely in CSG. 5. Indemnity by Participant. Participant agrees to indemnify and hold harmless CSG from and against any and all losses, claims, damages and expenses (including, but not limited to, Schedule 2.14 - Page 3 attorneys' and experts' fees, costs of investigation and costs of settlement) which result from Participant's breach of this Agreement or unauthorized use or disclosure of the Confidential Information. Participant's indemnification obligations pursuant to the immediately preceding sentence shall include an obligation to indemnify and hold harmless CSG from and against any and all losses, claims, damages and expenses asserted by anyone claiming by, through or under CSG. 6. Equitable Relief. The Participant and CSG agree that money damages would not be a sufficient remedy for breach of the confidentiality and other obligations of this Agreement. Accordingly, in addition to all other remedies that either party may have, CSG shall be entitled to specific performance and injunctive or other equitable relief as a remedy for any breach of the confidentiality and other obligations of this Agreement. The Participant agrees to waive any requirement for a bond in connection with any such injunctive or other equitable relief. 7. Third Party Beneficiary. First Data Technologies, Inc. shall be the only third party beneficiary of this Agreement. 8. Merger. This Agreement embodies the entire agreement and understanding of the parties hereto with respect to the subject matter hereof, and supercedes all prior and contemporaneous agreements and understanding relative to such subject matter. 9. Governing Law. This Agreement and performance thereunder shall be governed by the laws of the State of Nebraska, excluding its conflicts of laws rules. Schedule 2.14 - Page 4 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. Participant CSG SYSTEMS, INC. By:_____________________________ By:_____________________________ Name:___________________________ Name:___________________________ Title: _________________________ Title: _________________________ Schedule 2.14 - Page 5 SCHEDULE 2.16.1 ADDITIONAL CSG OBLIGATIONS -------------------------- 1. Applications Software; FDT Software. CSG will have responsibility for the integrity and performance of the Applications Software and the FDT Software and will cause the same to be maintained in accordance with the provisions of the Services Agreement, including any special provisions in the Operations Procedures. 2. Trained Personnel. CSG will provide appropriate training for all new CSG employees on Software then in use by or on behalf of CSG. CSG will notify FDT promptly of any changes in authorized users of the Software to be operated by FDT. 3. Compatible Operating Environment. If CSG obtains any services from a third party relating to the FDT Services, any Software provided by such third party that will be operated by FDT must conform to, and be compatible with, the then current operating environment in the FDT Data Center and must meet any applicable operating standards relating to the FDT Services. In addition, CSG shall ensure that any third party-provided services or Software will not interfere with FDT's ability to provide the FDT Services hereunder or increase FDT's costs associated therewith. 4. Resource Requirements. It will be CSG's responsibility to track its production and resource requirements and to request any Additional Services required beyond the existing FDT Services, allowing a reasonable time under the circumstances for FDT to provide such Additional Services in accordance with the Operations Procedures. Schedule 2.16.1 - Page 1 SCHEDULE 6.5 DISPUTE RESOLUTION ------------------ Disputes shall be resolved as follows: I. Informal Dispute Resolution. (a) Upon the written request of either Party, both Parties will appoint a designated representative who does not devote substantially all of his or her time to performance under this Services Agreement, whose task it will be to meet for the purpose of endeavoring to resolve such Dispute. (b) The designated representatives shall meet as often as the Parties reasonably deem necessary to discuss the problem in an effort to resolve the Dispute without the necessity of any formal proceeding. (c) Formal proceedings for the resolution of a Dispute may not be commenced until the earlier of: (i) the designated representatives concluding in good faith that amicable resolution through continued negotiation of the matter does not appear likely; or (ii) the expiration of the 30-day period immediately following the initial request to negotiate the Dispute; provided, however, that this Section I of this Schedule 6.5 will not be construed to prevent a Party from instituting formal proceedings earlier to avoid the expiration of any applicable limitations period, to preserve a superior position with respect to other creditors or to seek temporary or preliminary injunctive relief pursuant to Section 6.6 of the Services Agreement. II. Arbitration. If the Parties are unable to resolve any Dispute as contemplated by Section I of this Schedule 6.5 and if such Dispute is not subject to Section 6.6.1 of the Services Agreement, then such Dispute shall be submitted to mandatory and binding arbitration at the election of either Party (the "Disputing Party"). Except as otherwise provided in this Section II of this Schedule 6.5, the arbitration shall be pursuant to the Commercial Arbitration Rules of the American Arbitration Association (the "AAA"). (a) To initiate the arbitration, the Disputing Party shall notify the other Party in writing (the "Arbitration Demand"), which shall (i) describe in reasonable detail the nature of the Dispute, (ii) state the amount of the claim, (iii) specify the requested relief and (iv) name an arbitrator who (A) has been licensed to practice law in the United States of America for at least ten years, (B) is not then an employee or attorney of either Party or of an Affiliate of either Party, and (c) is experienced in representing clients in connection with data processing services and mergers and acquisitions (the "Basic Qualifications"). Within 15 days after the other Party's receipt of the Arbitration Demand, such other Party shall file, and serve on the Disputing Party, a written statement (i) answering the claims set forth in the Arbitration Demand and including any affirmative defenses of such Party, (ii) asserting any counterclaim, which shall (A) describe in reasonable detail the nature of the Dispute relating to the counterclaim, (B) state the amount of the counterclaim, and (C) specify the requested relief; and (iii) Schedule 6.5 - Page 1 naming a second arbitrator satisfying the Basic Qualifications. Promptly, but in any event within 15 days thereafter, the two arbitrators so named will select a third neutral arbitrator from a list provided by the AAA of potential arbitrators who satisfy the Basic Qualifications and who have no past or present relationships with the Parties or their counsel, except as otherwise disclosed in writing to and approved by the Parties. The arbitration will be heard by a panel of the three arbitrators so chosen (the "Arbitration Panel"), with the third arbitrator so chosen serving as the chairperson of the Arbitration Panel. All actions of the Arbitration Panel shall be by a majority vote of the arbitrators. (b) The arbitration hearing shall be held in such neutral location as the Parties may mutually agree. The Arbitration Panel shall have the power and authority to exclude evidence on grounds of prejudice, immateriality, or redundancy, and no ruling by the Arbitration Panel rejecting evidence on any of these grounds shall be a reason for vacating the arbitration award. The Party bringing a particular claim or asserting an affirmative defense will have the burden of proof with respect thereto. The arbitration proceedings and all testimony, filings, documents and information relating to or presented during the arbitration proceedings shall be deemed to be confidential information subject to Section 10 of the Services Agreement. The Arbitration Panel will have no power or authority, under the Commercial Arbitration Rules of the AAA or otherwise, to relieve the Parties from their agreement hereunder to arbitrate or otherwise to amend or disregard any provision of this Services Agreement, including the provisions of this Section II of this Schedule 6.5. Subject to the foregoing, the Arbitration Panel will have the authority to grant preliminary and permanent injunctive relief. (c) Should an arbitrator refuse or be unable to proceed with arbitration proceedings as called for by this Section II of this Schedule 6.5, the arbitrator shall be replaced by the Party who selected such arbitrator, or if such arbitrator was selected by the two Party-appointed arbitrators, by such two Party-appointed arbitrators selecting a new third arbitrator in accordance with Section II(a) of this Schedule 6.5. Each such replacement arbitrator shall satisfy the Basic Qualifications. If an arbitrator is replaced pursuant to this Section II(c) of this Schedule 6.5 after the arbitration hearing has commenced, then a rehearing shall take place in accordance with the provisions of this Section II of this Schedule 6.5 and the Commercial Arbitration Rules of the AAA. (d) Within 15 days after the closing of the arbitration hearing, the Arbitration Panel shall prepare and distribute to the Parties a writing setting forth the Arbitration Panel's award. The Arbitration Panel's award must state those reasons (but only those reasons) necessary to support its award. The award and the reasons for the award shall be deemed to be Confidential Information subject to the confidentiality obligations of the attached Services Agreement. (e) The Chairman of the Arbitration Panel is instructed, directed, and commanded to schedule promptly all discovery and other procedural steps and otherwise to assume case management initiative and control to assure resolution of the Dispute as expeditiously as practicable but in no event more than 365 days after the Arbitration Demand. (f) Any award rendered by the Arbitration Panel will be final, conclusive and binding upon the Parties and any judgement thereon may be entered and enforced in any court of competent jurisdiction. (g) Each Party will bear 50% of all fees, costs and expenses of the arbitrators, and notwithstanding any law to the contrary, each Party will bear all the fees, costs and expenses of its own attorneys, experts and witnesses; provided, however, that in connection with any judicial proceeding to compel arbitration pursuant to this Services Agreement or to enforce any award rendered by the Arbitration Panel, the prevailing Party in such a proceeding will be entitled to recover Schedule 6.5 - Page 2 reasonable attorneys' fees and expenses incurred in connection with such proceeding, in addition to any other relief to which it may be entitled. (h) Prompt disposal of any Dispute is important to the Parties. The Parties shall conduct resolution of each Dispute expeditiously and shall use their reasonable best efforts to finally dispose of each Dispute within 365 days or less following the Arbitration Demand. (iii) Time is of the essence of this Schedule 6.5. Schedule 6.5 - Page 3 EX-10.44 3 0003.txt STOCK OPTION PLAN Exhibit 10.44 [As amended through May 19, 2000] CSG SYSTEMS INTERNATIONAL, INC. STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS 1. Purpose. The purpose of the CSG Systems International, Inc. Stock Option Plan for Non-Employee Directors (the "Plan") is to foster and promote the long-term financial success of the Company and thereby increase stockholder value by attracting and retaining as directors of the Company highly qualified persons who are not employees of the Company or a Subsidiary. 2. Certain Definitions. "Board" means the Board of Directors of the Company. "Code" means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. References to a particular section of the Code shall include any regulations issued under such section. "Common Stock" means the Common Stock, $0.01 par value per share, of the Company. "Company" means CSG Systems International, Inc., a Delaware corporation. "Director" means a person then serving as a member of the Board of the Company. "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time. "Fair Market Value" means, as determined by the Board, the last sale price of the Common Stock as quoted on the Nasdaq National Market System on the trading day for which the determination is being made, or, in the event that no such sale takes place on such day, the average of the reported closing bid and asked prices on such day, or, if the Common Stock of the Company is listed on a national securities exchange, the last reported sale price on the principal national securities exchange on which the Common Stock is listed or admitted to trading on the trading day for which the determination is being made, or, if no such reported sale takes place on such day, the average of the closing bid and asked prices on such day on the principal national securities exchange on which the Common Stock is listed or admitted to trading, or, if the Common Stock is not quoted on such National Market System nor listed or admitted to trading on a national securities exchange, the average of the closing bid and asked prices in the over-the-counter market on the day for which the determination is being made as reported through Nasdaq, or, if bid and asked prices for the Common Stock on such day are not reported through Nasdaq, the average of the bid and asked prices for such day as furnished by any New York Stock Exchange member firm regularly making a market in the Common Stock selected for such purpose by the Board, or, if none of the foregoing is applicable, then the fair market value of the Common Stock as determined in good faith by the Board in its sole discretion. "Stock Option" means an option to purchase Common Stock granted pursuant to the Plan. "Subsidiary" means a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or by a Subsidiary, whether or not such corporation now exists or hereafter is organized or acquired by the Company or by a Subsidiary. 3. Administration. The Plan shall be administered by the Board, and the Board shall have authority to grant Stock Options to eligible Directors from time to time pursuant to the Plan. Subject to the applicable provisions of the Plan, the Board shall have authority to interpret the provisions of the Plan and to decide all questions of fact arising in the application of such provisions; to select the Directors to whom Stock Options shall be granted; to determine when, whether, and in what amounts Stock Options shall be granted; to determine the amount, terms, and conditions of each Stock Option; to determine the Fair Market Value of the Common Stock from time to time; to authorize persons to execute on behalf of the Company any agreement required to be entered into under the Plan; to adopt, alter, and repeal such administrative rules, guidelines, and practices governing the Plan as the Board from time to time shall deem advisable; and to make all other determinations necessary or advisable for the administration of the Plan. Unless otherwise expressly provided in the Plan, all decisions and determinations made by the Board pursuant to the provisions of the Plan shall be made in the sole discretion of the Board and shall be final and binding on all persons, including but not limited to the Company, the Directors to whom Stock Options are granted, the heirs and legal representatives of such Directors, and the personal representatives and beneficiaries of the estates of such Directors. 4. Common Stock Subject to the Plan. The Company shall reserve and keep available for issuance under the Plan four hundred fifty thousand (450,000) shares of Common Stock, subject to adjustment pursuant to Section 17. Such shares may consist in whole or in part of authorized and unissued shares or treasury shares or any combination thereof. Except as otherwise provided in the Plan, any shares subject to a Stock Option which expires or terminates unexercised as to such shares shall again be available for the grant of Stock Options. 5. Eligibility to Receive Stock Options. Stock Options may be granted under the Plan only to Directors who are not employees of the Company or a Subsidiary on the date of the grant. 6. Stock Options. All Stock Options shall be nonqualified stock options for purposes of the Code. Stock Options shall be evidenced by agreements in such form as the Board shall approve from time to time; such agreements shall contain in substance the following terms and conditions and may contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Board shall deem appropriate: (a) Type of Option. Each option agreement shall identify the Stock Option evidenced thereby as a nonqualified stock option for purposes of the Code. 2 (b) Option Price. Each option agreement shall set forth the number of shares of Common Stock covered by the stock option and the applicable option exercise price per share, which price shall not be less than the Fair Market Value of the Common Stock on the date the Stock Option is granted or less than the par value of the Common Stock. (c) Term. Each option agreement shall state the period or periods of time during which the Stock Option may be exercised, in whole or in part, which shall be such period or periods of time as the Board may determine at the time the Stock Option is granted; provided, that no Stock Option shall be exercisable more than ten years after the date of its grant; and provided further, that each Stock Option shall become and remain exercisable as provided in the option agreement relating to such Stock Option. (d) Payment for Shares. Each option agreement shall require the option exercise price per share to be paid in full in cash at the time the Stock Option is exercised with respect to any of the shares covered by such Stock Option. 7. Cessation of Service as a Director. Unless the applicable option agreement provides otherwise, if the grantee of a Stock Option ceases to be a Director for any reason other than retirement from the Board under the circumstances described in Section 8 or death, then each outstanding but unexercised Stock Option held by such grantee shall continue to be exercisable only to the extent that it was exercisable at the time that such grantee ceased to be a Director and only until the earlier of (i) ninety days after such grantee ceased to be a Director or (ii) the expiration of the term of such Stock Option; and to the extent not exercisable or not exercised (if exercisable) by such applicable date, such Stock Option shall terminate and be of no further force or effect. 8. Retirement from Board. Unless the applicable option agreement provides otherwise, if the grantee of a Stock Option ceases to be a Director (other than by reason of death) and at the time of such occurrence (the "Retirement Date") is at least age 65 with ten or more years of service as a Director or is at least age 70 with five or more years of service as a Director, then each outstanding but unexercised Stock Option held by such grantee on the Retirement Date shall continue to be or become exercisable in accordance with its terms until the earlier of (i) five years after the Retirement Date or (ii) the expiration of the term of such Stock Option; and to the extent not exercisable or not exercised (if exercisable) by such applicable date, such Stock Option shall terminate and be of no further force or effect. 9. Death. Unless the applicable option agreement provides otherwise, if the grantee of a Stock Option dies, then each outstanding but unexercised Stock Option which had been held by such grantee for at least twelve months as of the date of such grantee's death automatically shall become exercisable in full (if not already exercisable) upon such grantee's death. Each outstanding but unexercised Stock Option which becomes exercisable pursuant to the preceding sentence and each outstanding but unexercised Stock Option held by such grantee which was exercisable on the date of such grantee's death may be exercised by the legal representative of such grantee's estate or by the beneficiaries of such estate to whom such Stock Option is distributed until the earlier of (i) 3 three years after the date of such grantee's death or (ii) the expiration of the term of such Stock Option; and to the extent not exercisable or not exercised (if exercisable) by such applicable date, such Stock Option shall terminate and be of no further force or effect. 10. Acceleration of Exercisability. The Board shall have the authority to accelerate the exercisability of any outstanding Stock Option, subject to any applicable requirements of the Plan, under such circumstances and upon such terms and conditions as the Board shall deem appropriate. 11. General Restrictions. Each Stock Option grant under the Plan shall be subject to the requirement that if at any time the Board shall determine that (i) the listing, registration, or qualification of the shares of Common Stock subject or related thereto upon any securities market or securities exchange or under any state or federal law, (ii) the consent or approval of any governmental regulatory body, or (iii) an agreement by the grantee of such Stock Option with respect to the disposition of the shares of Common Stock subject thereto is necessary or desirable as a condition of, or in connection with, such grant or the issuance of shares of Common Stock thereunder, then such Stock Option grant may not be consummated and any rights under such Stock Option may not be exercised in whole or in part unless and until such listing, registration, qualification, consent, approval, or agreement shall have been effected or obtained upon conditions acceptable to the Board. 12. Rights of a Stockholder. The grantee of a Stock Option shall have no rights as a stockholder of the Company with respect to the shares of Common Stock subject to such Stock Option unless and until certificates for such shares of Common Stock are issued to such grantee upon the timely and proper exercise of such Stock Option. 13. No Right to Continue as a Director. Nothing in the Plan or in any agreement entered into pursuant to the Plan shall confer upon any Director the right to continue to serve as a Director of the Company. 14. Indemnification. No member of the Board, and no officer or employee of the Company acting on behalf of the Board, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan; and all members of the Board and each officer or employee of the Company acting on behalf of the Board shall, to the extent permitted by law, be fully indemnified by the Company in respect of any such action, determination, or interpretation. 15. Non-Assignability. No Stock Option granted under the Plan shall be assignable or transferable by the grantee thereof except by will or by the laws of descent and distribution. During the lifetime of a grantee of a Stock Option, such Stock Option may be exercised only by such grantee or such grantee's legal representative. 16. Nonuniform Determinations. The Board's determinations under the Plan (including but not limited to determinations of the persons to receive Stock Option grants, the amount and 4 timing of such grants, and the terms and provisions of such grants) need not be uniform and may be made by the Board selectively among the Directors who receive, or are eligible to receive, Stock Option grants. 17. Adjustments. In the event of any change in the outstanding shares of Common Stock by reason of a stock dividend or distribution, stock split, recapitalization, merger, reorganization, consolidation, split-up, spin-off, combination of shares, exchange of shares, or other change in corporate structure affecting the Common Stock, the Board shall make appropriate adjustments in (a) the aggregate number of shares of Common Stock (i) reserved for issuance under the Plan and (ii) covered by outstanding Stock Option grants and (b) the exercise price related to outstanding Stock Options; provided, that the number of shares subject to any Stock Option always shall be a whole number. 18. Termination and Amendment. The Board may terminate the Plan or amend the Plan or any portion thereof at any time, including but not limited to amendments to the Plan necessary to comply with the requirements of Section 16(b) of the Exchange Act or applicable regulations thereunder, except that the Board may not increase the maximum number of shares which may be issued under the Plan (other than by way of adjustments made pursuant to Section 17), extend the maximum period during which any Stock Option may be exercised, extend the term of the Plan, decrease the minimum option price to less than the Fair Market Value on the date of the grant of a Stock Option, or change the category of persons eligible to participate in the Plan without stockholder approval if such approval is required by the applicable rules of the Securities and Exchange Commission, the Nasdaq National Market, or any national securities exchange on which the Common Stock is listed. The termination or any amendment of the Plan shall not, without the consent of a Stock Option grantee, adversely affect such grantee's rights under a Stock Option previously granted to such grantee. The Board may amend the terms and conditions of any Stock Option grant previously made, prospectively or retroactively, as long as such amendment is not inconsistent with the terms of the Plan; but, except as otherwise expressly permitted by the Plan and subject to Section 17, no such amendment shall adversely affect the rights of the grantee of such Stock Option without such grantee's consent. 19. Term of Plan. Subject to approval of the Plan by the stockholders of the Company not later than December 31, 1997, the Plan shall become effective on the date on which the Plan is approved and adopted by the Board and shall terminate for purposes of further Stock Option grants on the first to occur of (i) December 31, 2006, or (ii) the effective date of the termination of the Plan by the Board pursuant to Section 18. No Stock Options may be granted under the Plan after the termination of the Plan, but such termination shall not affect any Stock Options outstanding at the time of such termination or the authority of the Board to continue to administer the Plan apart from the making of further Stock Option grants. The Board may grant Stock Options under the Plan prior to approval of the Plan by the stockholders of the Company, but any Stock Options so granted shall be subject in all respects to such approval. Notwithstanding the provisions of any option agreement evidencing a Stock Option granted prior to approval of the Plan by the stockholders of the Company, such Stock Option may not be exercised to any extent prior to such stockholder approval. If such stockholder approval is not given by December 31, 1997, then the 5 Plan and all Stock Options granted thereunder automatically shall terminate and be of no further force or effect at the close of business on December 31, 1997. 20. Governing Law. The Plan shall be governed by and construed in accordance with the laws of Delaware. 6 EX-27 4 0004.txt FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM 10-Q AS OF JUNE 30, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS DEC-31-2000 JAN-01-2000 JUN-30-2000 69,754 0 93,469 3,351 0 166,270 69,138 36,868 310,452 92,742 46,118 0 0 530 170,573 310,452 188,125 188,125 72,504 72,504 20,254 0 9,023 67,999 (25,704) 42,295 0 0 0 42,295 0.81 0.74 (1) IN THOUSANDS EXCEPT PER SHARE AMOUNTS.
EX-99.01 5 0005.txt SAFE HARBOR FOR FORWARD LOOKING STATEMENTS Exhibit 99.01 SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 CERTAIN CAUTIONARY STATEMENTS AND RISK FACTORS CSG Systems International, Inc. and its subsidiaries (collectively, the Company) or their representatives from time to time may make or may have made certain forward-looking statements, whether orally or in writing, including without limitation, any such statements made or to be made in the Management's Discussion and Analysis of Financial Condition and Results of Operations contained in its various SEC filings or orally in conferences or teleconferences. The Company wishes to ensure that such statements are accompanied by meaningful cautionary statements, so as to ensure to the fullest extent possible the protections of the safe harbor established in the Private Securities Litigation Reform Act of 1995. ACCORDINGLY, THE FORWARD-LOOKING STATEMENTS ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO AND ARE ACCOMPANIED BY THE FOLLOWING MEANINGFUL CAUTIONARY STATEMENTS IDENTIFYING CERTAIN IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN SUCH FORWARD-LOOKING STATEMENTS. This list of factors is likely not exhaustive. The Company operates in a rapidly changing and evolving business involving the converging communications markets, and new risk factors will likely emerge. Management cannot predict all of the important risk factors, nor can it assess the impact, if any, of such risk factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those in any forward-looking statements. ACCORDINGLY, THERE CAN BE NO ASSURANCE THAT FORWARD-LOOKING STATEMENTS WILL BE ACCURATE INDICATORS OF FUTURE ACTUAL RESULTS, AND IT IS LIKELY THAT ACTUAL RESULTS WILL DIFFER FROM RESULTS PROJECTED IN FORWARD-LOOKING STATEMENTS AND THAT SUCH DIFFERENCES MAY BE MATERIAL. RELIANCE ON CCS - --------------- The Company derived approximately 78.3% and 78.0% of its total revenues from its primary product, Communications Control System, and related products and services (collectively, "CCS") in the years ended December 31, 1999 and 1998, respectively. CCS is expected to provide the substantial majority of the Company's total revenues in the foreseeable future. The Company continues to develop new products and services to address the evolving needs of its new and existing clients as they roll out new product offerings and enter new markets. A substantial portion of the Company's new products and services require enhancements to the core functionality of CCS. There is an inherent risk of technical problems in maintaining and operating CCS as its complexity is increased. The Company's results will depend upon continued market acceptance of CCS, as well as the Company's ability to continue to adapt, modify, maintain, and operate CCS to meet the changing needs of its clients without sacrificing the reliability or quality of service. Any reduction in demand for CCS would have a material adverse effect on the financial condition and results of operations of the Company. AT&T RELATIONSHIP - ----------------- 1 Contract Rights and Obligations - ------------------------------- The AT&T Contract had an original term of 15 years and expires in 2012. The AT&T Contract includes minimum financial commitments by AT&T over the life of the contract, and includes exclusive rights for the Company to provide customer care and billing products and services for AT&T's offerings of wireline video, all Internet/high speed data services, residential wireline telephony services, and print and mail services. The AT&T Contract contains certain performance criteria and other obligations to be met by the Company. The Company is subject to various remedies and penalties if it fails to meet the performance criteria or other obligations. The Company is also subject to an annual technical audit to determine whether the Company's products and services include innovations in features and functions that have become standard in the wireline video industry. If an audit determines the Company is not providing such an innovation and it fails to do so in the manner and time period dictated by the contract, then AT&T would be released from its exclusivity obligation to the extent necessary to obtain the innovation from a third party. To fulfill the AT&T Contract and to remain competitive, the Company believes it will be required to develop new and advanced features to existing products and services, as well as new products and services, all of which will require substantial research and development and implementation and operational aptitude. AT&T has the right to terminate the AT&T Contract in the event of certain defaults by the Company. To date, the Company believes it has complied with the terms of the contract. The termination of the AT&T Contract or of any of AT&T's commitments under the contract would have a material adverse effect on the financial condition and results of operations of the Company. Business Activities and Dependence On AT&T - ------------------------------------------ AT&T completed its merger with TCI in March 1999 and has consolidated the TCI operations into AT&T Broadband. During the six months ended June 30, 2000, and the years ended December 31, 1999 and 1998, revenues from AT&T and affiliated companies represented approximately 45.3%, 50.5% and 37.4% of total revenues, respectively. The Company expects a similar percentage of its total revenues to be generated from AT&T in 2000. AT&T began its efforts to provide convergent communications services in several United States cities during 1999 and is expected to continue these efforts in 2000. The Company is working closely with AT&T to provide customer care and billing services to customers in those cities. The convergence of video, telephony and Internet services in the residential market is proceeding. As a result, the degree to which converged, broadband services meet with consumer acceptance and capture significant market share is speculative. Further, there may be customer care and billing needs of the broadband consumer that are not foreseen by the Company, or the Company's technological solutions may prove unable to meet the new and unique needs of the converging communications markets. If the Company were to fail to continue to perform successfully under the AT&T Contract, that would have a material adverse effect on the financial condition and results of operations of the Company. Likewise, if AT&T were to breach its material obligations to the Company, that would have a material adverse effect on the financial condition and results of operations of the Company. Historically, a substantial portion of the Company's revenue growth resulted from the sale of software and professional services to AT&T, both of which are in excess of the minimum financial commitments included in the contract. There can be no assurance that the Company will continue to sell products and services to AT&T in excess of the minimum financial commitments included in the contract. AT&T's Merger with MediaOne - --------------------------- AT&T and MediaOne have merged, with AT&T being the surviving entity. MediaOne has approximately 5.2 million cable television customers, and approximately 1.0 million of these customers are currently being processed on the Company's system. The Company is hopeful that it will have the opportunity to convert the remaining MediaOne customers onto its system. However, there are a number of uncertainties concerning the transaction, including (i) any preexisting MediaOne contractual obligations, (ii) the 2 structure of the combined entities, and (iii) the possibility of differences of opinion between AT&T and the Company regarding the applicability of the contract to all of the MediaOne customers. RENEWAL OF TIME WARNER CONTRACTS - -------------------------------- During the years ended December 31, 1999 and 1998, revenues from Time Warner represented approximately 10.2% and 14.1% of total revenues, respectively. The Company provides services to Time Warner under multiple, separate contracts with various Time Warner affiliates. These contracts are scheduled to expire on various dates. The failure of Time Warner to renew contracts representing a significant part of its business with the Company would have a material adverse effect on the financial condition and results of operations of the Company. America Online, Inc. ("AOL") and Time Warner have announced their intention to merge their companies. It would be premature to predict the impact, if any, the successful consummation of this transaction would have on the financial condition or results of operations of the Company. CONVERSION TO THE COMPANY'S SYSTEMS - ----------------------------------- The Company's ability to convert new client sites to its customer care and billing systems on a timely and accurate basis is necessary to meet the Company's contractual commitments and to achieve its business objectives. Converting multiple sites under the schedules required by contracts or business requirements is a difficult and complex process. One of the difficulties in the conversion process is that competition for the necessary qualified personnel is intense and the Company may not be successful in attracting and retaining the personnel necessary to complete conversions on a timely and accurate basis. The inability of the Company to perform the conversion process timely and accurately would have a material adverse effect on the results of operations of the Company. INDUSTRY CONSOLIDATION AND DEPENDENCE ON CABLE TELEVISION AND DBS INDUSTRIES - ---------------------------------------------------------------------------- The Company's business is concentrated in the cable television and Direct Broadcast Satellite ("DBS") industries, making the Company susceptible to a downturn in those industries. During the years ended December 31, 1999 and 1998, the Company derived 75.8% and 77.7%, and 15.5% and 13.0% of its total revenues from companies in the U.S. cable television and U.S. and Canadian DBS industries, respectively. A decrease in the number of customers served by the Company's clients, loss of business due to non-renewal of client contracts, industry consolidation, and/or changing consumer demand for services would adversely effect the results of operations of the Company. There can be no assurance that new entrants into the cable television market will become clients of the Company. Also, there can be no assurance that cable television providers will be successful in expanding into other segments of the converging communications markets. Even if major forays into new markets are successful, the Company may be unable to meet the special billing and customer care needs of that market. The cable television industry is undergoing significant ownership changes at an accelerated pace. One facet of these changes is that cable television providers are consolidating, decreasing the potential number of buyers for the Company's products and services. Currently, seven providers account for 85% of the U.S. cable television market and two providers account for almost the entire U.S. DBS market. The Company processes at least a portion of the customers for five of the seven cable television providers, and for both of the DBS providers. For the year ended December 31, 1999, approximately 83% of the Company's total revenues were generated from companies either under the control of, or expected to come under the control of, these seven providers. Consolidation in the industry may put at risk the Company's ability to leverage its existing relationships. Should this consolidation result in a concentration of cable television customer accounts being owned by companies with whom the Company does not have a 3 relationship, or with whom competitors are entrenched, it could negatively effect the Company's ability to maintain or expand its market share, thereby adversely effecting the results of operations. NEW PRODUCTS AND RAPID TECHNOLOGICAL CHANGE - ------------------------------------------- The market for customer care and billing systems is characterized by rapid changes in technology and is highly competitive with respect to the need for timely product innovations and new product introductions. The Company believes that its future success in sustaining and growing the annual revenue per customer account depends upon continued market acceptance of its current products, including CCS, and its ability to enhance its current products and develop new products that address the increasingly complex and evolving needs of its clients. Substantial research and development will be required to maintain the competitiveness of the Company's products and services in the market. Development projects can be lengthy and costly, and are subject to changing requirements, programming difficulties, a shortage of qualified personnel, and unforeseen factors which can result in delays. In addition, the Company is typically responsible for the implementation of new products, and depending upon the specific product, may also be responsible for operations of the product. There is an inherent risk in the successful implementation and operations of these products as the technological complexity increases. There can be no assurance (i) of continued market acceptance of the Company's current products, (ii) that the Company will be successful in the timely development of product enhancements or new products that respond to technological advances or changing client needs, or (iii) that the Company will be successful in supporting the implementation and/or operations of product enhancements or new products. CONVERGING COMMUNICATIONS MARKETS - --------------------------------- The Company's growth strategy is based in large part on the continuing convergence and growth of the cable television, DBS, telecommunications, and on- line services markets. If these markets fail to converge, grow more slowly than anticipated, or if providers in the converging markets do not accept the Company's solution for combining multiple communications services for a customer, there could be a material adverse effect on the Company's growth. COMPETITION - ----------- The market for the Company's products and services is highly competitive. The Company directly competes with both independent providers of products and services and in-house systems developed by existing and potential clients. In addition, some independent providers are entering into strategic alliances with other independent providers, resulting in either a new competitor, or a competitor(s) with greater resources. Many of the Company's current and potential competitors have significantly greater financial, marketing, technical, and other competitive resources than the Company, and many already have significant international operations. There can be no assurance that the Company will be able to compete successfully with its existing competitors or with new competitors. ATTRACTION AND RETENTION OF PERSONNEL - ------------------------------------- The Company's future success depends in large part on the continued service of its key management, sales, product development, and operational personnel. The Company is particularly dependent on its executive officers. The Company believes that its future success also depends on its ability to attract and retain highly skilled technical, managerial, operational, and marketing personnel, including, in particular, additional personnel in the areas of research and development and technical support. Competition for qualified personnel is intense, particularly in the areas of research and development and technical support. 4 The Company may not be successful in attracting and retaining the personnel it requires, which would adversely effect the Company's ability to meet its commitments and new product delivery objectives. VARIABILITY OF QUARTERLY RESULTS - -------------------------------- The Company's quarterly revenues and results, particularly relating to software and professional services, may fluctuate depending on various factors, including the timing of executed contracts and the delivery of contracted services or products, the cancellation of the Company's services and products by existing or new clients, the hiring of additional staff, new product development and other expenses, and changes in sales commission policies. No assurance can be given that results will not vary due to these factors. As the Company's overall revenue grows, so too does the risk associated with meeting financial expectations for revenue derived from its software and services offerings. As a result, there is a proportionately increased likelihood that the Company may fail to meet revenue and earnings expectations of the analyst community. With the current volatility of the stock market, should the Company fail to meet analyst expectations by even a relatively small amount it would most likely have a disproportionately negative impact upon the market price for the Company's common stock. DEPENDENCE ON PROPRIETARY TECHNOLOGY - ------------------------------------ The Company relies on a combination of trade secret and copyright laws, nondisclosure agreements, and other contractual and technical measures to protect its proprietary rights in its products. The Company also holds a limited number of patents on some of its newer products, and does not rely upon patents as a primary means of protecting its rights in its intellectual property. There can be no assurance that these provisions will be adequate to protect its proprietary rights. Although the Company believes that its intellectual property rights do not infringe upon the proprietary rights of third parties, there can be no assurance that third parties will not assert infringement claims against the Company or the Company's clients. INTERNATIONAL OPERATIONS - ------------------------ The Company's business strategy includes a commitment to the marketing of its products and services internationally, and the Company has acquired and established operations outside of the U.S. The Company is subject to certain inherent risks associated with operating internationally. Risks include product development to meet local requirements such as the conversion to EURO currency, difficulties in staffing and management, reliance on independent distributors or strategic alliance partners, fluctuations in foreign currency exchange rates, compliance with foreign regulatory requirements, variability of foreign economic conditions, changing restrictions imposed by U.S. export laws, and competition from U.S.-based companies which have firmly established significant international operations. There can be no assurance that the Company will be able to manage successfully the risks related to selling its products and services in international markets. INTEGRATION OF ACQUISITIONS - --------------------------- As part of its growth strategy, the Company seeks to acquire assets, technology, and businesses which would provide the technology and technical personnel to expedite the Company's product development efforts, provide complementary products or services or provide access to new markets and clients. Acquisitions involve a number of risks and difficulties, including expansion into new geographic markets and business areas, the requirement to understand local business practices, the diversion of management's attention to the assimilation of acquired operations and personnel, potential adverse short-term effects on the Company's operating results, and the amortization of acquired intangible assets. 5 SYSTEM SECURITY - ---------------- The end users of the Company systems are continuously connected to the Company's products through a variety of public and private telecommunications networks. The Company has plans to integrate the Internet more closely into its product offerings thereby permitting, for example, a customer to use the Internet to review account balances, order a pay per view event or execute similar account management functions. The Company also operates an extensive internal network of computers and systems used to manage internal communications, financial information, development data and the like. The Company's product and internal communications networks and systems carry an inherent risk of failure as a result of human error, acts of nature and intentional, unauthorized attacks from computer "hackers." Opening up these networks and systems to permit access via the Internet increases their vulnerability to unauthorized access and corruption, as well as increasing the dependency of the systems' reliability on the availability and performance of the Internet's infrastructure. Certain system security and other controls for CCS are reviewed annually by an independent party. The Company has recently undergone a security review of its internal systems by an independent party, and is currently implementing a plan intended to minimize the risk of an unauthorized access to the networks and systems. The method, manner, cause and timing of an extended interruption or outage in the Company's networks or systems is impossible to predict. As a result, there can be no assurances that the networks and systems will not fail, nor that the Company's business recovery plans will adequately mitigate any damages incurred as a consequence. In addition, should the Company's networks or systems be significantly compromised, it would most likely have a material adverse effect on the operations of the Company, including its ability to meet product delivery obligations or client expectations. Likewise, should the Company's networks or systems experience an extended interruption or outage, have their security compromised or data lost or corrupted, it would most likely result in an immediate loss of revenue, as well as damaging the reputation of the Company. Any of these events could have both an immediate, negative impact upon the Company's short term revenue and profit expectations, as well as its long term ability to attract and retain new clients. PRODUCT OPERATIONS AND SYSTEM AVAILABILITY - ------------------------------------------ The Company's product operations are run in both mainframe and distributed system computing environments, as follows: Mainframe Environment --------------------- CCS operates in a mainframe data processing center managed by FDC (the "FDC Data Center"), with end users dispersed throughout the United States and Canada. These services are provided under an agreement with FDC, which was recently extended and is now scheduled to expire June 30, 2005. The Company believes it could obtain mainframe data processing services from alternative sources, if necessary. The Company has a business recovery plan as part of its agreement with FDC should the FDC Data Center suffer an extended business interruption or outage. This plan is tested on an annual basis. Distributed Systems Environment ------------------------------- The Company also operates certain of its new product applications in its own distributed systems data processing center (the "CSG Data Center") for the benefit of certain clients. Typically, these distributed product applications interface to and operate in conjunction with CCS via telecommunication networks. The Company is currently implementing its business recovery plan for the CSG Data Center. The Company has extensive experience in running applications within the mainframe computing platform, and only within the last few years, began running applications within the CSG Data Center. In addition, the mainframe computing environment and related technology is mature and has proven to be a highly reliable and scaleable computing platform. The distributed 6 systems computing platform is not at the same level of maturity as the mainframe computing platform. The end users of the Company systems are continuously connected to the Company's products through a variety of public and private telecommunications networks, and are highly dependent upon the continued availability of the Company's systems to conduct their business operations. Should the FDC Data Center or CSG Data Center, or any particular product application or internal system which is operated within the data centers, as well as the connecting telecommunications networks, experience an extended business interruption or outage, it could have an immediate impact to the business operations of the Company's clients, which could have a material adverse effect on the financial condition and results of operations of the Company. 7 -----END PRIVACY-ENHANCED MESSAGE-----