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SEGUE desires to retain RIDGEWARE to provide Technical Support Services (“Services”) to SEGUE and it’s customers for SEGUE’s product QA Radar. This includes: phone-based technical support activity and detailed call tracking Radar 2.1 “front line” Beta service with Beta customers simple questions from the SEGUE sales force about QA Radar simple questions from SEGUE’s Radar development team about QA Radar In consideration of the mutual promises contained herein, SEGUE and RIDGEWARE agree as follows: Payment for Services. SEGUE shall pay RIDGEWARE the fees set forth in EXHIBIT A: Rate and Payment Terms for the performance of the Services, together with reimbursement for RIDGEWARE’s direct costs and out of pocket expenses as provided herein. Taxes. The fees payable under this Agreement shall not be construed to include local, state or federal sales, use, excise, personal property or similar taxes or duties (hereinafter “Taxes”) and any such Taxes other than Taxes based on the net income of RIDGEWARE shall be assumed and paid for by SEGUE. Employment Taxes and Benefits. RIDGEWARE acknowledges and agrees that it shall be the obligation of RIDGEWARE to report as income all compensation received by RIDGEWARE pursuant to this Agreement. As applicable, RIDGEWARE shall be solely responsible for payment of salary (including withholding of income taxes and social security) and associated benefits of its employees. Relationship of Parties. RIDGEWARE employees, when engaging with SEGUE customers, have no authority whatsoever to bind SEGUE by contract or otherwise. RIDGEWARE employees, when engaging with SEGUE customers, also may not attempt to sell additional RIDGEWARE or SEGUE products or services to Segue customers, without Segue’s prior consent. Company Property. For the term of this agreement, Segue grants permission to RIDGEWARE to SEGUE’s private network, customer lists, software licensing information, software source code and general access to proprietary information which may be required to perform Services under this agreement. RIDGEWARE acknowledges that Segue retains exclusive ownership of all such. Segue also retains ownership of all materials provided by RIDGEWARE to Segue’s customers in providing Services under this agreement, including logs of interactions with Segue’s customers, solutions provided by RIDGEWARE to Segue’s customers and any customizations of QA Radar. Upon mutual agreement Segue and RIDGEWARE may own such materials jointly. Upon normal or abnormal termination of Services, all Company Property and access to Segue’s private network, customer lists, software licensing information, software source code and general access to proprietary information which may be required to perform Services under this agreement will be handled as follows, unless advised otherwise by SEGUE. dial-up access into SEGUE’s private network will be ceased immediately electronic data will be destroyed within 2 days tangible records will be returned within 7 days Confidentiality. RIDGEWARE agrees to hold SEGUE’s and Customer’s Confidential Information in confidence and not to disclose such Confidential Information to any third parties. For purposes hereof, “Confidential Information” shall include all confidential and proprietary information of SEGUE, Customer, or any third party, disclosed by SEGUE or Customer to RIDGEWARE, which, in the case of information disclosed orally, is identified at the time of disclosure as confidential, or in the case of information disclosed in writing, is labeled as confidential. The above obligations shall not apply to Confidential Information which: (a) was in the public domain at the time it was communicated to RIDGEWARE by SEGUE or Customer; (b) entered the public domain subsequent to the time it was communicated to RIDGEWARE by SEGUE or Company through no fault of RIDGEWARE; (c) was in RIDGEWARE’s possession free of any obligation of confidence at the time it was communicated to RIDGEWARE by SEGUE or Customer;(d) was rightfully communicated to RIDGEWARE free of any obligation of confidence subsequent to the time it was communicated to RIDGEWARE by SEGUE or Customer; (e) was developed by employees or agents of RIDGEWARE independently of and without reference to any information communicated to RIDGEWARE by SEGUE or Customer; (f) was communicated by SEGUE or Customer to an unaffiliated third party free of any obligation of confidence; or (g) was part of a communication in response to a valid order by a court or other governmental body, was otherwise required by law, or was necessary to establish the rights of either party under this Agreement. Termination. This Agreement shall commence on the Effective Date and shall continue until terminated abnormally, as described above ((9) or normally as described here: SEGUE will give RIDGEWARE written notice in person, by facsimile or by mail (“Termination Request”) that RIDGEWARE’s Technical Support Services are no longer desired. RIDGEWARE will continue to be paid for Services until the end of the calendar month on which RIDGEWARE received the termination request. If the Termination Request is received after 5:00pm on the 19th of any particular month, RIDGEWARE will be paid for it’s services until the end of the next calendar month. Warranty of Performance. RIDGEWARE warrants that the Services performed under this Agreement will be performed in a professional and workmanlike manner. THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Limitation. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR LOSS OF PROFIT, GOODWILL OR OTHER INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES SUFFERED BY THE OTHER IN CONNECTION WITH OR ARISING UNDER THIS AGREEMENT. General. Governing Law: Severability. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. If any provision of this Agreement is for any reason found by a court of competent jurisdiction to be unenforceable, the remainder of this Agreement shall continue in full force and effect. Complete Understanding: Modification. This Agreement constitutes the full and complete understanding and agreement of the parties hereto and supersedes all prior and contemporaneous understandings and agreements, whether written or oral. This includes the CONSULTING AGREEMENT signed by SEGUE and RIDGEWARE on 9/1/1998. Any waiver, modification or amendment of any provision of this Agreement shall be effective only if in writing and signed by the parties hereto. Notices. Any notices required or permitted hereunder shall be given to the appropriate party at the address specified above or at such other address as the party shall specify in writing. Such notice shall be deemed given upon personal delivery to the appropriate address or if sent by certified or registered mail, upon receipt. Blackout Periods. Since RIDGEWARE employees will have access to proprietary information of SEGUE, it is reasonable to extend the stock trading restrictions (“blackout periods”) which all SEGUE employees experience to all RIDGEWARE employees. SEGUE assumes responsibility for communicating these blackout periods to RIDGEWARE management. RIDGEWARE management will assume all responsibility for educating it’s employees and for enforcing this policy. IN WITNESS WHEREOF, the parties hereto have signed this Agreement. SEGUE SOFTWARE, INC. RIDGEWARE, INC. By: ________________________ By: ______________________ Name: ______________________ Name: ____________________ Title: _______________________ Title: _____________________ EXHIBIT A: Rate and Payment Terms RIDGEWARE will invoice SEGUE in advance, for each upcoming month for which the Technical Support Services are expected to be rendered or for which RIDGEWARE is expected to be paid. The “current rate” decided upon by SEGUE and RIDGEWARE is $4,000 per week. All telephone charges from the “previous” month will be included in the advance bill for the next month. RIDGEWARE’s payment terms are NET-15. Payment of each RIDGEWARE invoice is expected within 15 calendar days of the billing date. Rates and terms may be renegotiated at the discretion of SEGUE and RIDGEWARE by replacing this EXHIBIT A with a new revision. 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