Sample Business Contracts


Third Party Private Label Interface Agreement [Amendment] - Orbitz LLC and Pegasus Solutions Inc.



           AMENDMENT TO THIRD PARTY PRIVATE LABEL INTERFACE AGREEMENT

THIS AMENDMENT TO THIRD PARTY PRIVATE LABEL INTERFACE AGREEMENT (this
"AMENDMENT"), is entered into as of December 15, 2002 (the "AMENDMENT DATE") by
and between Orbitz, LLC, a Delaware limited liability company ("ORBITZ"), and
Pegasus Solutions, Inc., a Delaware corporation ("PEGASUS").

                                    RECITALS

WHEREAS, Orbitz and Pegasus entered into that certain Third Party Private Label
Interface Agreement dated effective December 15, 2000, as amended (the
"AGREEMENT"); and

WHEREAS, Orbitz and Pegasus wish to amend the Agreement as further provided
herein.

                                    AGREEMENT

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which the parties hereto hereby acknowledge, Orbitz and Pegasus hereby agree
as follows:

1.   Initial capitalized terms not otherwise defined herein shall have the
     meanings given such terms in the Agreement.

     Section    of the Agreement is hereby amended to add the following
     additional definition:

     "MERCHANT INVENTORY. The hotel accommodation inventory which ORBITZ, or its
     designated intermediary or affiliate, sells at a marked-up rate to a
     customer on a pre-paid basis, with ORBITZ or its designated intermediary or
     affiliate acting as the merchant of record for the transaction."

3.   Section 2.3 of the Agreement is hereby deleted and the following inserted
     in lieu thereof:

     "Orbitz agrees that for each month during the term of this Agreement at
     least [***] of all hotel reservations on Orbitz's Services for properties
     in the Online Distribution Database that are booked through the Worldspan,
     Sabre, Galileo, Amadeus, Pegasus, Worldres or Wizcom distribution systems
     during each calendar month shall be processed via the Reservation Function
     (the "Minimum Volume"). If Orbitz, either itself or through any third
     party, (a) implements any electronic means of booking or cancelling hotel
     reservations (other than through the Pegasus Services or through the
     Worldspan, Sabre, Galileo, Amadeus, Worldres or Wizcom distribution
     systems) directly from the Orbitz Services to the centralized computer
     reservations systems of any of the Designated Entities (a "Direct
     Connection") and (b) uses the Direct Connection to book or cancel hotel
     reservations, other than reservations for Merchant Inventory, the Minimum
     Volume shall increase to [***] while such Direct Connection is operational.
     For purposes of the preceding sentence, "Designated Entities" shall mean
     [***], but only so long as the particular entity is participating in the
     Reservation Function. Individual hotel properties operating under the name
     of a Designated Entity shall not be included in the definition of
     "Designated Entities."

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     Any calculation of the Minimum Volume commitment shall incorporate only
     hotel reservations booked via the Worldspan, Sabre, Galileo, Amadeus,
     Pegasus, Worldres or Wizcom distribution systems and shall not include
     hotel reservations booked with respect to Merchant Inventory.
     Implementation of any electronic means of booking or canceling hotel
     reservations directly from the Orbitz Services to the centralized computer
     reservations systems of any Designated Entities or hotel properties for the
     purpose of booking or canceling Merchant Inventory shall not constitute a
     "Direct Connection." Orbitz shall provide a report in a form acceptable to
     Pegasus verifying the Minimum Volume on or before the 30th business day of
     each month for the immediately preceding month. If Orbitz does not process
     the Minimum Volume of hotel reservations for three (3) consecutive calendar
     months, Pegasus shall have the right to terminate this Agreement at any
     time upon ninety (90) days written notice to Orbitz.

4.   Section 2.5 of the Agreement is hereby deleted in its entirety.

5.   Section 2.6 of the Agreement is hereby deleted and the following inserted
     in lieu thereof:

     "RIGHTS TO USE ONLINE DISTRIBUTION DATABASE AND RESERVATION FUNCTION.

     (i)     Pegasus hereby grants, and Orbitz accepts, the limited, worldwide,
             royalty-free, non-exclusive, non-transferable right to access, use
             and display the Reservation Function in conjunction with the Orbitz
             Services during the term of this Agreement solely for the purpose
             of determining room availability for specific dates, and making and
             canceling reservations, at hotels participating in the Reservation
             Function.

     (ii)    Pegasus hereby grants, and Orbitz accepts, during the term of this
             Agreement the limited, worldwide, non-exclusive, royalty-free
             (except in the case of Section 3.1A(ii)), non-transferable right,
             either itself or through its third party agent acting as a service
             provider to Orbitz, to (a) access, use, and display information
             residing in the Online Distribution Database in conjunction with
             the Orbitz Services solely for the purposes of (I) displaying such
             information to end user accessors of the Orbitz Services or end
             user accessors of the services of Third Party Users, and (II)
             facilitating the making and canceling of hotel reservations,
             including hotel reservations booked for Merchant Inventory; and (b)
             download information residing in the Online Distribution Database,
             populate one or more Orbitz databases with such information, modify
             such information to the extent directed or permitted by the entity
             having the ability to grant the right to so modify, and use such
             information solely as permitted in the immediately preceding
             subsection (a). If Orbitz permits information downloaded by it from
             the Online Distribution Database to reside on the system or network
             of any third party acting as a service provider to Orbitz, Orbitz
             shall ensure that such third party is subject to restrictions
             regarding the use of such information at least as restrictive as
             those governing Orbitz' use as defined in this Agreement.

     (iii)   Orbitz acknowledges and agrees that the Reservation Function and
             the Online Distribution Database are the sole and exclusive
             property of Pegasus or the hotels participating in the Online
             Distribution Database and may not be copied, downloaded,
             hyperlinked or in any manner used or redistributed in whole or in
             part except as expressly permitted by this Agreement. Pegasus and
             the hotels participating in the Online Distribution Database shall
             retain exclusive ownership of all right, title and

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             interest, including without limitation all intellectual property
             rights, in and to the Reservation Function, the Online Distribution
             Database and the information residing therein. Except for the
             rights granted by Pegasus to Orbitz pursuant to this SECTION 2.6,
             no right, title or interest of any kind in the foregoing is granted
             to Orbitz pursuant to this Agreement. The rights granted to Orbitz
             pursuant to this Section 2.6 shall terminate upon the termination
             of this Agreement; provided, however, that to the extent Orbitz has
             obtained a direct license from the entity having the right to grant
             such license to use hotel information downloaded from the Online
             Distribution Database and used to populate an Orbitz database, the
             term of which license extends beyond the termination of this
             Agreement, then Orbitz shall not be required to remove such
             information from the Orbitz database upon termination of this
             Agreement.

     (iv)    Pegasus represents that it has the authority to grant the rights
             granted to Orbitz pursuant to this SECTION 2.6.

     (v)     Orbitz acknowledges that hotels participating in the Online
             Distribution Database may remove their information from the
             database and/or cease to participate in the Reservation Function at
             anytime without prior notice."

6.   Section 2.8 of the Agreement is hereby deleted in its entirety.

7.   Section 2.9(v) of the Agreement is hereby deleted and the following
     inserted in lieu thereof:

     "each Agreement with a Third Party User permitting access to and use of the
     Online Distribution Database and the Reservation Function must contain
     Section 9.1 of this Agreement, must not contain any provision inconsistent
     with this Agreement and must terminate upon the termination of this
     Agreement for whatever reason."

8.   A new Section 2.13 is hereby inserted into the Agreement as follows:

     "PRIOR NOTICE.

     (i)     Each party hereto will use commercially reasonable efforts to
             promptly determine whether any planned modifications or
             enhancements to that party's functionality, applications, databases
             or systems will result in a significant increase in (a) the message
             traffic load on the Pegasus Services or (b) the number of hotel
             reservations processed through use of the Pegasus Services. If such
             party determines that such modifications or enhancements will have
             such an impact or result in such an increase, such party shall
             notify the other party (which may include notice via email) of such
             determination as soon as practicable following such determination.

     (ii)    Orbitz will use commercially reasonable efforts to provide advance
             notice to Pegasus of each lodging-related advertising campaign or
             promotion undertaken by Orbitz during the term of this Agreement;
             provided that such notice may be provided via email at the same
             time Orbitz circulates notice of such advertising campaign or
             promotion internally and such notice shall constitute reasonable
             advanced notice.

     (iii)   Prior to conducting any test involving the Interface, Orbitz shall
             determine if in its reasonable discretion, such test will have a
             material negative impact on Pegasus'

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             systems. In the event that Orbitz determines that such test could
             cause such an impact, then it will provide Pegasus with at least
             three (3) days prior notice of its desire to conduct such a test.
             Orbitz will abide by any reasonable restrictions placed on such
             testing by Pegasus with respect to the time, date and duration of
             any such test."

9.   Section 3.1 of the Agreement is hereby deleted and the following inserted
     in lieu thereof:

     "NET RESERVATION FEE. Subject to the provisions of Exhibit A-1 hereto under
     the heading "Orbitz Transactional Efficiency", Pegasus shall pay a Net
     Reservation fee for each Net Reservation processed during a given calendar
     month as follows:

     (i)     Beginning on December 15, 2002, and continuing through [***], U.S.
             [***] per Net Reservation; and

     (ii)    Beginning on [***], and for each month thereafter during the
             term hereof, U.S. [***] per Net Reservation."

10.  A new Section 3.1 A is hereby inserted into the Agreement as follows:

     "FAILURE TO FULFILL MINIMUM VOLUME. Notwithstanding Section 3.1 hereof,
     during any calendar month in which Orbitz fails to achieve the Minimum
     Volume set forth in Section 2.3 above, Pegasus shall not pay any amount to
     Orbitz pursuant to Section 3.1 hereof with respect to that calendar month.
     Pegasus' rights under this Section 3.1 A shall constitute Pegasus' sole and
     exclusive remedy with respect to any failure by Orbitz to meet the Minimum
     Volume, subject to Pegasus' termination right set forth in Section 2.3
     above, which if exercised shall be Pegasus' sole and exclusive remedy for
     Orbitz' refusal or failure to maintain the Minimum Volume."

11.  A new Section 3.1B is hereby inserted into the Agreement as follows:

     "TECHNICAL/PROFESSIONAL SERVICES FEE. If Orbitz submits a written request
     for Pegasus to perform technical or professional services for any purpose
     other than support and maintenance of the then-current Pegasus Services,
     Pegasus shall create a statement of work for such services and upon
     agreement to and execution by the parties of such statement of work, Orbitz
     shall pay Pegasus on a time and materials basis at Pegasus' then-standard
     hourly rate for such technical and/or professional services (not to exceed
     [***] per hour) for each hour expended by Pegasus personnel, plus actual
     expenses incurred (at cost and without mark-up) by Pegasus, in performance
     of such statement of work."

12.  A new Section 3.1C is hereby inserted into the Agreement as follows:

     "TRANSACTIONAL EFFICIENCY PAYMENTS. Orbitz shall pay to Pegasus the
     amounts, if any, due from Orbitz in accordance with the provisions of
     Exhibit A-1 hereto".

13.  A new Section 3.1D is hereby inserted into the Agreement as follows:

     "VOLUME-BASED RIGHT TO TERMINATE. If the number of Net Reservations is less
     than [***] during each of [***] consecutive calendar months, Pegasus shall
     have the right to terminate the rights granted to Orbitz pursuant to
     Section 2.6(ii) of this Agreement at any

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     time upon ninety (90) days written notice to Orbitz."

14.  Section 3.2 of the Agreement is hereby amended to include the following
     additional provisions:

     "In addition to Orbitz' termination rights under Section 5.1, payment of
     the aforementioned service level fees shall be Orbitz' sole and exclusive
     remedies with respect to any failure by Pegasus to meet any of the service
     level requirements set forth on Exhibit A."

15.  A new Section 3.A is hereby inserted into the Agreement as follows:

     "Following any month with respect to which Pegasus owes service level fees,
     Pegasus may, subject to availability of placements on the Orbitz Services
     as determined in Orbitz' sole reasonable discretion, select advertising
     placements at a price that is [***] off Orbitz' then-current rate card (an
     "Ad Purchase"), and shall be entitled to apply the amount of the service
     level fees owed toward an Ad Purchase for a period of not more than ninety
     (90) days following the end of the month to which such service level fees
     are attributable."

16.  The words "9% or 3/4% per month" in Section 3.6 shall be replaced with the
     words "12% or 1% per month."

17.  Section 4. of the Agreement is hereby deleted and the following inserted in
     lieu thereof:

     "TERM OF AGREEMENT. The initial term of this Agreement, unless earlier
     terminated pursuant to the provisions of this Agreement, shall continue
     through December 15, 2004."

18.  Section 5.1 of the Agreement is hereby amended to add the following
     additional provision

     "If (i) Pegasus fails to meet the System Availability requirement set forth
     on Exhibit A hereto for three consecutive months or (ii) System
     Availability falls below [***] in any month, Orbitz shall have the right to
     terminate this Agreement at any time upon thirty (30) days written notice
     to Pegasus."

19.  The third sentence of Section 7.2 of the Agreement is hereby deleted in its
     entirety.

20.  Section 6.1(iii) is hereby deleted in its entirety.

21.  Section 10.3 of the Agreement is hereby amended to include the following
     additional provision:

     "Notwithstanding the foregoing, if a Pegasus Change in Control occurs,
     Orbitz may terminate this Agreement upon thirty (30) days prior written
     notice. For purposes of this provision "Pegasus Change in Control" means an
     event in which Pegasus becomes controlled by, or an affiliate of, an Orbitz
     Competitor. For purposes of this provision "controlled" by means the
     possession, directly or indirectly, of the power to direct or cause the
     direction of management or policies (whether through ownership of
     securities or partnership or other ownership interests, or by contract).
     For purposes of this provision "Orbitz Competitor" means Amadeus Global
     Travel Distribution S.A., Sabre Inc. (including Easy Sabre, Travelocity,
     Site59 and GetThere), Hotels.com, Expedia Inc. (including Travelscape), and

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     Cendant Corporation (including TheTrip.com, CheapTickets.com, and Galileo
     International), and all subsidiaries and affiliates of, and any successor
     entity to, any of the foregoing."

22.  Section 10.9 of the Agreement is hereby deleted and the following inserted
     in lieu thereof:

     "INSURANCE. At no cost to Orbitz, Pegasus shall obtain and maintain
     commercial general liability insurance ("CGL Insurance") from one or more
     companies having an A.M. Best's Rating of A-VII or better. The CGL
     Insurance maintained by Pegasus shall have minimum limits of $2,000,000
     bodily injury and property damage per occurrence; shall be occurrence
     based; and shall include personal injury coverage.

23.  Exhibit A of the Agreement is hereby deleted and the new Exhibit A,
     attached hereto, inserted in lieu thereof.

24.  [***]

25.  REVOCATION OF TERMINATION. Upon execution of this Amendment, the notice of
     termination of the Agreement provided by Orbitz to Pegasus on October 15,
     2002 shall be revoked and shall have no effect.

26.  CONTINUING EFFECT. Except as amended or modified by this Amendment, the
     Agreement and its provisions shall continue in full force and effect as
     originally executed.


IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed as of date first above written.

ORBITZ, LLC                               PEGASUS SOLUTIONS, INC.


By: /s/ STEVE HAFNER                      By:  /s/ KEVIN P. SHORT
   --------------------------------           ----------------------------------

Name:   STEVE HAFNER                      Name:    KEVIN P. SHORT
     ------------------------------            ---------------------------------

Title: Exec. Vice President               Title:   Sr Vice President
      -----------------------------             --------------------------------

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                                     EXHIBIT A

                            SERVICE LEVEL REQUIREMENTS

SYSTEM AVAILABILITY

Requirement:   System Availability will be [***] measured by calendar month.

Definitions:   "System Availability" is defined as [***].

Measurement:   [***]

Scheduled:     [***]

SERVICE LEVEL FEES

If System Availability is less than [***] during any calendar month, Pegasus
shall pay to Orbitz with respect to such month an amount equal to [***]
multiplied by the number of Net Reservations attributable to such month.

PROBLEM RESOLUTION PROCEDURES:

Severity levels shall be designated by Orbitz in good faith.

Severity       System down completely or transaction or request throughput is
               significantly degraded- 30 minute response time, commitment to
               fix in 2 hours. Pegasus will update the Orbitz POC (Point of
               Contact - NOC) at a minimum of every 30 minutes. Within 5
               business days of resolution, Pegasus will deliver to Orbitz a
               written analysis detailing the causes of the incident.

Severity 2:    Serious business impact - e.g., message returns not meeting
               these service levels (1 hour response time, commitment to fix in
               4 hours and confirmation when resolved). Pegasus will update the
               Orbitz POC (Point of Contact - NOC) at a minimum of every 60
               minutes. Within 5 business days of resolution, Pegasus will
               deliver to Orbitz a written analysis detailing the causes of the
               incident.

Severity 3:    Nuisance - e.g., unable to retrieve non-critical backup
               information (same day response time, commitment to resolve in one
               week, with daily updates). All non-emergency types of requests
               submitted to customer service will be acknowledged and responded
               to with a turnaround time within 2 business days. Escalation for
               items not acknowledged or resolved would be to contact the
               account manager.

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                                 EXHIBIT A-1

                       ORBITZ TRANSACTIONAL EFFICIENCY

                                    [***]


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