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EXHIBIT 10.18
SERVICES AGREEMENT
This SERVICES AGREEMENT (the "Agreement") is entered into and effective
as of the "Effective Date" by and between ISM INFORMATION SYSTEMS MANAGEMENT
CORPORATION ("ISM"), a corporation having an address at 245 Consumers Road,
Toronto, Ontario, Canada M2J 1R3, and OPTIMARK TECHNOLOGIES INC., a Delaware
corporation having an address at 10 Exchange Place, 12th floor, Jersey City, New
Jersey 07302 USA ("OptiMark").
WHEREAS, OptiMark, ISM and IBM Canada Limited have entered into a license
agreement for certain IBM software known as the "ITS Application Product" and
the further development of modifications to the ITS Application Product for use
in an implementation of OptiMark's proprietary trading system, on February 2,
1999 (the "License Agreement");
WHEREAS OptiMark and ISM now wish to set forth the terms for the
maintenance by ISM of the ITS Application Product and its modifications;
NOW THEREFORE, in consideration of the premises stated in this Agreement
and for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows to the terms and
conditions of this Agreement:
1.0 DEFINITIONS
Terms defined in the License Agreement, if used in this Agreement, shall
have the same meaning unless the context dictates otherwise. Other terms
are defined as follows:
1.1 "Agreement" means this Agreement and its Schedules attached
hereto, with any amendment thereto;
1.2 "Charges" means the amounts payable to ISM by OptiMark for the
Services in accordance with Schedule B;
1.3 "Effective Date" means January 1, 1999;
1.4 "Schedule" means those schedules attached hereto, with any
amendment thereto:
1.4.1 Schedule A: Description of the Services
1.4.2 Schedule B: Charges
1.4.3 Schedule C: Confidentiality Agreement
1.5 "Services" means those services to be provided by ISM as described
in Schedule A;
* This confidential portion has been omitted and filed separately with the
Commission.
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2.0 SERVICES
2.1 ISM will provide the Services to OptiMark as set out in Schedule A
with competent personnel.
2.2 EXCEPT AS PROVIDED IN SECTION 2.1 OF THIS AGREEMENT, IBM MAKES NO
OTHER EXPRESS WARRANTIES IN THIS AGREEMENT, AND THERE ARE NO
IMPLIED WARRANTIES OR CONDITIONS, INCLUDING BUT NOT LIMITED TO,
THE IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABLE QUALITY AND
FITNESS FOR A PARTICULAR PURPOSE.
3.0 INDEPENDENT CONTRACTOR
3.1 ISM is an independent contractor. No agency, partnership, joint
venture or other joint relationship between the parties is created
by this Agreement.
4.0 CHARGES
4.1 OptiMark will pay ISM for the Services in accordance with Schedule
B.
4.2 In addition to the Charges, OptiMark will reimburse ISM for all
expenses incurred by ISM in providing the Services, including all
living expenses (including transportation, meals, lodging) while
ISM personnel is working at OptiMark's locations.
4.3 All Charges are exclusive of taxes, use or other taxes, custom
duties and similar levies, if any, and all assessments or other
charges in connection with this Agreement, payable in or to any
jurisdiction or authority whatsoever, which taxes, duties, levies,
assessments or other charges will be OptiMark's responsibility
(other than taxes on ISM's net income). OptiMark will provide ISM,
upon demand, with the appropriate documentation certifying its
remittance of applicable withholding tax to the authorities.
4.4 Charges and expenses will be invoiced monthly, in arrears, and
will be payable fifteen (15) days from the date of the invoice.
Interest on amounts unpaid after their due date will be payable at
the rate of 1.25% per month (equivalent effective annual interest
rate of 16.18%).
4.5 Payments will be made by wire transfer to the account of ISM as
instructed by ISM to OptiMark. OptiMark will pay any charges
associated with such wire transfers and any other bank charges
which may be applicable.
4.6 All amounts payable hereunder are payable in legal tender of
Canada
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4.7 OptiMark will be responsible to obtain any governmental approvals
and registrations and to comply with any filing requirements, that
may be required to remit to ISM the amounts payable to ISM
hereunder. OptiMark will provide to ISM evidence of such approvals
upon demand.
4.8 At ISM's sole option, if OptiMark fails to make any payment when
due, ISM may, upon five (5) days written notice, cease providing
the Services. This remedy will be without limitation of any other
remedy ISM may have under this Agreement or at law and will not be
considered a breach by ISM under the terms of this Agreement.
4.9 Notwithstanding anything to the contrary contained in this
Agreement or elsewhere, OptiMark agrees to make the payments set
out in this Agreement without deduction, set-off, abatement or
compensation for any reason whatsoever.
5.0 CONFIDENTIAL INFORMATION
5.1 Proprietary and confidential information which is disclosed by one
party to the other pursuant to this Agreement shall be protected
by, subject to and governed by the provisions of the
Confidentiality Agreement.
6.0 OWNERSHIP OF WORK PRODUCT
6.1 Modifications made to the ITS Application or the OPS Modified Work
through activities performed by ISM under this Agreement shall be
treated in accordance with the terms of the License Agreement.
7.0 LIMITATION OF LIABILITY
7.1 ISM's aggregate liability for direct actual damages arising out of
or in connection with ISM's performance or non-performance under
this Agreement, regardless of the form of action and whether in
contract, tort (including, without limitation, negligence),
warranty or other legal or equitable grounds, will be limited, for
each instance, to the amount of the Charges paid to ISM for the
Services that are the cause of the damages for the 2-month period
before the claim. In no event will ISM's cumulative liability for
damages for all claims during any calendar year exceed the charges
paid by OptiMark to ISM for the Services during the calendar year;
provided that this limitation will not apply to:
7.1.1 damages for physical harm to persons or tangible personal
property and real property caused by ISM's negligence; and
7.1.2 all damages for which ISM is liable under article 8.0
("ISM's patent, trade mark and trade secret indemnity") and
article 5.0 ("Confidential Information")
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7.2 In no event is ISM liable for:
7.2.1 any special, indirect or consequential damages (other than
for physical harm to persons caused by ISM's negligence)
even if ISM has been advised of the possibility thereof,
including but not limited to lost profits, lost business
revenue, failure to realise expected savings or loss of, or
damage to, OptiMark's records or data; or
7.2.2 any claims by a third party against OptiMark or any
contractor to OptiMark (including, without limitation,
claims by a Customer) other than those claims provided for
under article 8.0 ("ISM's patent, trade mark and trade
secret indemnity") and article 5.0 ("Confidential
Information")
8.0 ISM'S PATENT, TRADE MARK AND TRADE SECRET INDEMNITY
8.1 Subject to section 7.2, ISM will indemnify, defend and hold
OptiMark, the OptiMark Related Companies, the Customers of each
and the officers, directors, employees and agents of each
(individually and collectively, the "OptiMark Indemnitees")
harmless from and against any and all claims, causes of action,
liabilities, damages, costs or expenses finally awarded or settled
against them (including, without limitation, reasonable legal fees
awarded or settled against them or any of them) arising out of or
resulting from any claim of infringement of a patent, of a
copyright, of a misappropriation of a trade secret or of any other
right alleged against the OptiMark Indemnitees and arising out of
or from the use or exploitation of the ITS Software or the
IBM-Made Modifications in the OPS Modified Work as permitted under
this Agreement by the OptiMark Indemnitees provided that, subject
to the provisions set forth in section 8.2, the OptiMark
Indmenitees promptly notify ISM of any such claim and co-operate
with ISM in, and allow ISM to control, the defense of any such
claim and any related settlement negotiations.
8.2 Using counsel selected by ISM, ISM will assume, at its own cost, a
prompt, rigorous and full defense and/or a good faith settlement
(which seeks to maintain OptiMark's rights hereunder) of any claim
of which ISM is responsible to indemnify under section 8.1 and
OptiMark will cooperate reasonably with ISM in connection
therewith; except that with respect to settlements entered into by
ISM: (A) the consent of OptiMark will be required if the
settlement provides for equitable relief against any of the
OptiMark Indemnitees; and (b) ISM will obtain a full and complete
release of the OptiMark Indemnitees from the third party
claimant(s) concerning any claim which ISM is responsible to
indemnify under section 8.1. ISM will keep OptiMark reasonably and
timely apprised of the events of the defense and/or settlement
(including without limitation the providing of copies of the
relevant pleadings, other filings and settlement proposals) and
ISM shall give full consideration to, and be open to discussion
of, the views and suggestions of OptiMark (and/or its counsel as
provided for in section 8.3) in proceeding with such defense
and/or settlement.
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8.3 In the defense or settlement of any claim under section 8.1, and
subject to section 7.2, ISM shall promptly reimburse the OptiMark
Indemnitees for all costs, damages, expenses, legal fees and/or
other amounts that a court of competent jurisdiction (including
without limitation any arbitration panel or other tribunal)
finally awards against any OptiMark Indemnitee and to timely pay
all costs, damages, expenses, legal fees and/or other amounts
agreed to be paid in settlement, resulting from a claim
indemnified under section 8.1 provided further that ISM will
permit OptiMark to participate in the settlement or defense of the
claims through counsel chosen and paid for by OptiMark, and keep
such counsel informed as they may request.
8.4 In addition, if any claim or cause of action referred to in
section 8.1 is made against an OptiMark Indemnitee's use or
exploitation of the IBM-Made Modifications in the OPS Modified
Work as permitted under this Agreement which occasions any
material risk of an injunction against such use or exploitation,
IBM will, upon notice of the claim of infringement and at no cost
to OptiMark either, (i) obtain a license from the third party for
the OptiMark Indemnitees to continue using the accused IBM-Made
Modifications which shall come into effect no later than the
earliest effective date of any such injunction; and/or (ii) modify
the accused IBM-Made Modifications to avoid such infringement and
use all diligent efforts which are not unreasonable to complete
such modifications before any inlunction precluding the use
thereof can be secured or come into effect, including securing the
assistance of the IBM Related Companies in so doing.
8.5 In addition to the indemnity provided in section 8.1, ISM shall
promptly notify OptiMark in writing, should ISM receive notice of
or become aware of any third party claim or assertion against ISM
(or the IBM Related Companies) of ownership or of copyright or
patent infringement or of infringement of any other intellectual
property right pertaining to any aspect of the IBM-Made
Modifications or the use thereof and provide a copy of any such
claim or assertion (if the claim or assertion is provided in
writing) or a description thereof (if made orally) and upon
OptiMark's request, ISM shall provide reasonable responses to
reasonable OptiMark inquiry concerning such claims or assertions
and any risk of injunction as perceived by ISM.
8.6 The provisions in sections 8.1 to 8.5 represent ISM's entire
obligation to OptiMark regarding any claim for infringement,
except as set forth in section 8.5.
8.7 ISM has no obligation under this Agreement regarding any
infringement claim based on the following:
8.7.1 Any OPS Modifications other than IBM-Made Modifications, or
any use of the IBM-Made Modifications in the OPS Modified
Work which is outside the license or grants of the License
Agreement;
8.7.2 The combination, operation or use of the IBM-Made
Modifications with any product, data, computer equipment or
software that ISM or an IBM
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Related Company did not recommend, intend or provide and
which infringement claim would not have been made out by
the use of the IBM-Made Modifications with any product,
data, computer equipment or communication software that ISM
or an IBM Related Company did or does recommend, intend or
provide; or
8.7.3 The combination, operation or use of the IBM-Made
Modifications in the OPS Modified Work with any other
software used by OptiMark for trade processing, trade
matching and strategizing functions which ISM or the IBM
Related Companies do not recommend, intend or provide and
which infringement claim would not have been made out by
the use of the IBM-Made Modifications with software which
ISM or the IBM Related Companies did or do recommend,
intend or provide.
9.0 OPTIMARK'S INDEMNITY
9.1 OptiMark will indemnify and save harmless ISM, the IBM Related
Companies, their officers, directors, employees and agents
(collectively and individually called the "ISM Indemnitees") from
and against any and all liabilities, damages, costs or expenses
awarded against or incurred or suffered by them or any of them
(including, without limitation, reasonable legal fees incurred by
them or any of them) arising out of any claim against them or any
of them by a Customer or any subcontractor to OptiMark made in
connection with this Agreement or the Services.
9.2 OptiMark will assume, at its own cost, the defense or settlement
of any claim in respect of which OptiMark is responsible to
indemnify the ISM Indemnitees under section 9.1, and ISM will
cooperate with OptiMark in connection therewith; except that with
respect to settlements entered into by OptiMark (a) the consent of
ISM will be required if the settlement provides for equitable
relief against an ISM Indemnitee; and (b) OptiMark will obtain the
release of ISM and any ISM Indemnitee. OptiMark will: (i) permit
ISM to participate in the settlement or defense of the claim
through counsel chosen by ISM; and (ii) promptly reimburse ISM and
the ISM Indenmitees for the full amount of any loss resulting from
any claim and all related expenses incurred by the ISM
Indemnitees. In the event that OptiMark fails to assume the
defense or settlement of any claim, ISM shall have the right, but
not the obligation, to contest, settle or compromise the claim in
the exercise of its reasonable judgement at the expense of
OptiMark.
10.0 TERM AND TERMINATION
10.1 This Agreement is effective from the Effective Date and shall
remain in effect until the date specified in Schedule A ( December
31, 2000) or such later date as may be mutually agreed to by the
parties, unless terminated earlier in accordance with this
Agreement;
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10.2 Either party may terminate this Agreement upon thirty (30) days
written notice if the other party fails to fulfil its material
obligations under this Agreement. If the failing party corrects
the cause of termination specified in the notice within the notice
period, the notice of termination shall be void.
11.0 NOTICES
11.1 Any notice or other communication required or permitted to be
given under this Agreement shall be in writing and will be
sufficiently given if provided in accordance with section 19.1 of
the License Agreement.
12.0 ASSIGNMENT
12.1 Neither party may assign the Agreement or any obligation
thereunder without the prior written consent of the other party,
such consent not to be unreasonably withheld, provided that either
party may assign this Agreement or any of its rights or
obligations hereunder to an affiliated entity or to a person that
acquires control of its enterprise without the prior consent of
the other party.
13.0 GENERAL
13.1 Neither party will be responsible for failure to fulfil its
respective obligations under this Agreement due to causes beyond
its control;
13.2 Section headings have been included in this Agreement merely for
convenience of reference and will not be considered part of or
used in interpreting this Agreement.
13.3 If any portion of this Agreement is held or becomes invalid,
illegal or unenforceable in general or with respect to any
particular transaction or person, that portion will be severed
from this Agreement or will be severed with respect to such
transaction or person only, and the remainder of the Agreement
will continue in full force and effect.
13.4 Any waiver by either party of any obligation under this Agreement
must be in writing and will not be considered to be a waiver of
any other breach of the same obligation.
13.5 Upon termination of this Agreement, all accrued obligations or
liabilities and the provisions which by their nature are intended
to endure beyond such termination will remain in effect.
13.6 No action regardless of form may be brought by either party
against the other more than two (2) years after the cause of
action arises.
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13.7 This Agreement will be binding upon and inure to the benefit of
the parties and their respective successors and permitted assigns.
13.8 This Agreement will be governed and interpreted in accordance with
the laws of the Province of Ontario and the applicable federal
laws of Canada. The parties agree to attorn to the jurisdiction of
the courts of the Province of Ontario, in Toronto.
13.9 The United Nations Convention on Contracts for the International
Sale of Goods shall not apply to this Agreement.
13.10 Neither party shall make any public statement concerning this
Agreement or disclose the existence of this Agreement without the
prior written consent of the other party.
13.11 This Agreement and its Schedules is the complete and exclusive
statement of agreement between the parties relating to the subject
matter of this Agreement and its Schedules and supersedes all
proposals, written or oral, and all other communications between
the parties relating to the subject matter of this Agreement.
14.0 NON-SOLICITATION
14.1 OptiMark agrees that while this Agreement remains in effect, and
for a period of six (6) months thereafter, it will not directly or
indirectly solicit, hire or retain any ISM employee if such
employee participated in the delivery of the Services without
ISM's prior written consent.
15.0 ACCEPTANCE
15.1 The parties, by their authorised signatures below, agree that this
Agreement is the complete agreement between the parties and
replaces all prior communications related to the subject matter of
this Agreement
AGREED BY: AGREED BY:
ISM INFORMATION SYSTEMS OPTIMARK TECHNOLOGIES, INC.
MANAGEMENT CORPORATION
By: /s/ Brenda Hoffman By: /s/ William F. Adiletta
Name: Brenda Hoffman Name: William F. Adiletta
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Title: Director Title: Executive Vice President
Date: May 6, 1999 Date: May 6, 1999
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SERVICES AGREEMENT - SCHEDULE A
DESCRIPTION OF SERVICES
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[GRAPHIC: OPTIMARK TECHNOLOGIES INC.]
ISM/OptiMark
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PCX Maintenance and Production Support Services
April 19, 1999
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OptiMark Trading System
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HISTORY
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Version Release Date
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1.4 12/21/98
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2.0 03/01/99
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REVIEWERS
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Director, ISM Professional Services
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Manager, Architecture and Technology
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ISM Project Manager
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ISM Support Supervisor
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OTI Project Manager
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To order additional copies of this document, contact:
ISM Information Systems Management Corp.
245 Consumers Road,
North York, ON M2J 4R3
Copyright (C) 1998 ISM Information Systems Management Corporation and OptiMark
Technologies, Inc All rights reserved. No part of this publication may be
reproduced, transmitted. transcribed, stored in a retrieval system, or
translated into any language in any form by any means without the written
permission of ISM Information Systems Management Corporation and OptiMark
Technologies, Inc.
Other third party product names used herein are used to identify such products
and for descriptive purposes only. Such names may be marks and/or registered
marks of their respective owners.
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---------------------------------------
OPS Maintenance and Production Support
---------------------------------------
CONTENTS
<TABLE>
<S> <C>
1 PURPOSE...................................................................................................1-10
2 BACKGROUND................................................................................................2-11
3 OVERVIEW..................................................................................................3-12
4 DOCUMENT FORMAT...........................................................................................4-15
5 OPS PRODUCTION ENVIRONMENT SUPPORT........................................................................5-16
5.1 ROLES AND RESPONSIBILITIES..................................................................................5-16
5.2 PROBLEM MANAGEMENT SUPPORT..................................................................................5-19
5.2.1 Problem tracking ...........................................................................5-19
5.2.2 Major Incident Owner (MIO)..................................................................5-19
5.3 PROBLEM DETERMINATION.......................................................................................5-20
5.3.1 Investigation...............................................................................5-20
5.3.2 Secure Access...............................................................................5-20
5.3.3 OptiMark Information Center (OIC) Updates...................................................5-20
5.3.4 CPMA Updates................................................................................5-20
5.3.5 Internal Escalation.........................................................................5-20
5.3.6 OPS Application Consulting..................................................................5-21
5.4 PROBLEM RESOLUTION..........................................................................................5-21
5.4.1 Root Cause Analysis.........................................................................5-21
5.4.2 Recommended Resolution......................................................................5-21
5.4.3 Emergency Changes...........................................................................5-22
5.4.4 Application Configuration/Data Modification.................................................5-22
5.4.5 Operating System/Hardware Issues............................................................5-22
5.4.6 Tracking....................................................................................5-22
5.5 CHANGE MANAGEMENT .....................................................................................5-22
5.5.1 Overview....................................................................................5-22
5.5.2 Source Management...........................................................................5-23
5.5.3 Tracking and Prioritization.................................................................5-23
5.5.4 Change Meetings.............................................................................5-23
5.5.5 Document Release Notes......................................................................5-24
5.5.6 Fallback Procedures.........................................................................5-24
5.5.7 Risk Assessment.............................................................................5-24
5.5.8 Scheduling Conflicts........................................................................5-24
5.5.9 Reviewer Process............................................................................5-24
5.5.10 Implementations and Walkthroughs............................................................5-24
</TABLE>
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<TABLE>
<S> <C> <C>
5.6 MAINTENANCE AND ENHANCEMENTS...........................................................................5-24
5.6.1 Requirement Analysis........................................................................5-24
5.6.2 Architectural Review........................................................................5-25
5.6.3 Detailed Design.............................................................................5-25
5.64 Development.................................................................................5-25
5.6.5 Integration Test............................................................................5-25
5.6.6 Acceptance Test.............................................................................5-25
5.7 OFF-SITE SUPPORT.......................................................................................5-26
5.7.1 OPS Cell/Pager Support......................................................................5-26
5.7.2 Remote Access...............................................................................5-26
5.7.3 Onsite Support..............................................................................5-26
5.7.4 PCX/Los Angeles.............................................................................5-27
5.7.5 OIC Help DesK/30 Montgomery.................................................................5-27
5.7.6 OTI Testing Support/10 Exchange.............................................................5-27
5.8 RELEASE MANAGEMENT.....................................................................................5-28
5.8.1 RMS support.................................................................................5-28
5.8.2 Macros and tools............................................................................5-28
5.8.3 Release....................................................................................5-28
5.8.4 Emergency releases..........................................................................5-29
5.8.5 Release promotions..........................................................................5-29
5.9 OPERATIONS SUPPORT.....................................................................................5-30
5.9.1 Overview....................................................................................5-30
5.9.2 Computer Operations.........................................................................5-30
5.9.3 Production Control..........................................................................5-30
5.9.4 Technical Services..........................................................................5-30
5.9.5 Security administration.....................................................................5-31
6 INTEGRATION TEST ENVIRONMENT SUPPORT......................................................................6-32
6.1 ROLES AND RESPONSIBILITIES.............................................................................6-32
6.2 PROBLEM MANAGEMENT SUPPORT.............................................................................6-35
6.2.1 Problem Tracking............................................................................6-35
6.2.2 Major Incident Owner (MIO)..................................................................6-35
6.3 PROBLEM DETERMINATION..................................................................................6-35
6.3.1 Investigation...............................................................................6-35
6.3.2 Secure Access...............................................................................6-35
6.3.3 OptiMark Information Center Updates.........................................................6-35
6.3.4 Internal Escalation.........................................................................6-35
6.3.5 OPS Application Consulting..................................................................6-35
6.4 PROBLEM RESOLUTION.....................................................................................6-36
6.4.1 Root Cause Analysis.........................................................................6-36
6.4.2 Recommended Resolution......................................................................6-36
6.4.3 Emergency Changes...........................................................................6-36
6.4.4 Application Configuration/Data Modification.................................................6-36
6.4.5 Operating System/Hardware Issues............................................................6-36
6.4.6 Tracking....................................................................................6-37
6.5 CHANGE MANAGEMENT......................................................................................6-37
</TABLE>
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<TABLE>
<S> <C> <C>
6.5.1 Source Management...........................................................................6-37
6.5.2 Tracking and Prioritization.................................................................6-37
6.5.3 Change Meetings.............................................................................6-37
6.5.4 Document Release Notes......................................................................6-37
6.5.5 Fallback Procedures.........................................................................6-37
6.5.6 Risk Assessment.............................................................................6-38
6.5.7 Scheduling Conflicts........................................................................6-38
6.5.8 Reviewer Process............................................................................6-38
6.5.9 Implementations and Walkthroughs............................................................6-38
6.6 OFF-SITE SUPPORT.......................................................................................6-38
6.6.1 OPS Cell/Pager Support......................................................................6-38
6.6.2 Onsite Support..............................................................................6-38
6.6.3 Remote Access...............................................................................6-38
6.6.4 PCX/Los Angeles.............................................................................6-38
6.6.5 OIC Help Desk/30 Montgomery.................................................................6-39
6.6.6 OTI Testing Support/10 Exchange.............................................................6-39
6.7 RELEASE MANAGEMENT.....................................................................................6-39
6.7.1 Overview....................................................................................6-39
6.7.2 Macros and tools............................................................................6-39
6.7.3 Release promotions..........................................................................6-39
6.8 OPERATIONS SUPPORT.....................................................................................6-40
6.8.1 Computer Operations.........................................................................6-40
6.8.2 Production Control..........................................................................6-40
6.8.3 Technical Services..........................................................................6-40
6.8.4 Security administration.....................................................................6-40
7 QUALITY ENGINEERING ENVIRONMENTS..........................................................................7-41
7.1 ROLES AND RESPONSIBILITIES.............................................................................7-41
7.2 PROBLEM MANAGEMENT SUPPORT.............................................................................7-44
7.2.1 Problem tracking............................................................................7-44
7.2.2 Major Incident Owner (MIO)..................................................................7-44
7.3 PROBLEM DETERMINATION..................................................................................7-44
7.3.1 Investigation...............................................................................7-44
7.3.2 Secure Access...............................................................................7-44
7.3.3 OptiAlark Information Center Updates........................................................7-44
7.3.4 Internal Escalation.........................................................................7-44
7.3.5 OPS Application Consulting..................................................................7-44
7.4 PROBLEM RESOLUTION.....................................................................................7-44
7.4.1 Root Cause Analysis.........................................................................7-44
7.4.2 Recommended Resolution......................................................................7-45
7.4.3 Emergency Changes...........................................................................7-45
7.4.4 Application Configuration/Data Modification.................................................7-45
7.4.5 Operating System/Hardware Issues............................................................7-45
7.4.6 Tracking................................................................................... 7-45
7.5 CHANGE MANAGEMENT......................................................................................7-46
7.5.1 Tracking and Prioritization.................................................................7-46
</TABLE>
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<TABLE>
<S> <C> <C>
7.5.2 Change Meetings.............................................................................7-46
7.5.3 Document Release Notes......................................................................7-46
7.5.4 Fallback Procedures.........................................................................7-46
7.5.5 Risk Assessment.............................................................................7-46
7.5.6 Scheduling Conflicts........................................................................7-46
7.5.7 Approval and Review Process.................................................................7-47
7.5.8 Implementations and Walkthroughs............................................................7-47
7.6 OFF-SITE SUPPORT.......................................................................................7-47
7.6.1 OPS Cell/Pager Support......................................................................7-47
7.6.2 Onsite Support..............................................................................7-47
7.6.3 Remote Access...............................................................................7-47
7.6.4 PCX/Los Angeles.............................................................................7-47
7.6.5 OIC Help Desk,/30 Montgomery................................................................7-47
7.6.6 OTI Testing Support/10 Exchange.............................................................7-47
7.7 RELEASE MANAGEMENT.....................................................................................7-47
7.7.1 Overview....................................................................................7-47
7.7.2 Macros and tools............................................................................7-48
7.7.3 Release promotions..........................................................................7-48
7.8 OPERATIONS SUPPORT.....................................................................................7-48
7.8.1 Technical Services..........................................................................7-48
8 OTI DEVELOPMENT ENVIRONMENTS..............................................................................8-49
8.1 ROLES AND RESPONSIBILITIES.............................................................................8-49
8.2 PROBLEM MANAGEMENT SUPPORT.............................................................................8-52
8.2.1 Problem tracking............................................................................8-52
8.2.2 Major Incident Owner (MIO)..................................................................8-52
8.3 PROBLEM DETERMINATION.......................................................................................8-52
8.3.1 Investigation...............................................................................8-52
8.3.2 Secure Access...............................................................................8-52
8.3.3 OptiMark Information Center Updates.........................................................8-52
8.3.4 Internal Escalation.........................................................................8-52
8.3.5 OPS Application Consulting..................................................................8-52
8.4 PROBLEM RESOLUTION.....................................................................................8-52
8.4.1 Root Cause Analysis.........................................................................8-52
8.4.2 Recommended Resolution......................................................................8-53
8.4.3 Emergency Changes...........................................................................8-53
8.4.4 Application Configuration/Data Modification.................................................8-53
8.4.5 Operating System/Hardware Issues............................................................8-53
8.4.6 Tracking....................................................................................8-53
8.5 CHANGE MANAGEMENT......................................................................................8-54
8.5.1 Tracking and Prioritization.................................................................8-54
8.5.2 Change Meetings.............................................................................8-54
8.5.3 Document Release Notes......................................................................8-54
8.5.4 Fallback Procedures.........................................................................8-54
8.5.5 Risk Assessment.............................................................................8-54
8.5.6 Scheduling Conflicts........................................................................8-54
</TABLE>
16
<PAGE> 17
<TABLE>
<S> <C> <C>
8.5.7 Approval and Review Process.................................................................8-54
8.6 OFF-SITE SUPPORT.......................................................................................8-55
8.6.1 OPS Cell/Pager Support......................................................................8-55
8.6.2 Onsite Support..............................................................................8-55
8.6.3 RemoteAccess................................................................................8-55
8.6.4 PCX/Los Angeles.............................................................................8-55
8.6.5 OIC Help Desk/30 Montgomery.................................................................8-55
8.6.6 OTI Testing Support/10 Exchange.............................................................8-55
8.7 RELEASE MANAGEMENT.....................................................................................8-55
8.7.1 Overview....................................................................................8-55
8.7.2 Macros and tools............................................................................8-55
8.7.3 Release promotions..........................................................................8-55
8.8 OPERATIONS SUPPORT.....................................................................................8-56
8.8.1 Overview....................................................................................8-56
9 ISM DEVELOPMENT ENVIRONMENTS..............................................................................9-57
9.1 ROLES AND RESPONSIBILITIES.............................................................................9-57
9.2 PROBLEM MANAGEMENT SUPPORT.............................................................................9-60
9.2.1 Problem tracking............................................................................9-60
9.3 PROBLEM DETERMINATION..................................................................................9-60
9.3.1 Investigation...............................................................................9-60
9.4 PROBLEM RESOLUTION.....................................................................................9-60
9.4.1 Root Cause Analysis.........................................................................9-60
9.4.2 Recommended Resolution......................................................................9-60
9.4.3 Application Configuration/Data Modification.................................................9-60
9.4.4 Operating System/Hardware Issues............................................................9-61
9.4.5 Tracking....................................................................................9-61
9.5 MODIFICATIONS AND ENHANCEMENTS.........................................................................9-61
9.5.1 Source Maintenance..........................................................................9-61
9.5.2 Development.................................................................................9-61
9.6 RELEASE MANAGEMENT.....................................................................................9-61
9.6.1 Overview....................................................................................9-61
9.6.2 Macros and tools............................................................................9-61
9.6.3 Release build...............................................................................9-61
9.6.4 Release promotions..........................................................................9-62
9.7 OPERATIONS SUPPORT.....................................................................................9-62
9.7.1 Computer Operations.........................................................................9-62
9.7.2 Production Control..........................................................................9-62
9.7.3 Technical Services..........................................................................9-63
9.7.4 Security administration.....................................................................9-63
10 OTI ENVIRONMENT RESPONSIBILITIES.........................................................................10-64
10.1 DISTRIBUTION SERVER (DS) COMPONENT....................................................................10-64
10.2 INSTITUTION SERVER (IS) NT TEST TOOL COMPONENT........................................................10-64
10.3 IS AND GRAPHICAL USER INTERFACE (GUI).................................................................10-64
</TABLE>
17
<PAGE> 18
<TABLE>
<S> <C> <C>
10.4 PCX STRATUS TMAX COMPONENTS...........................................................................10-64
10.5 MEC/OMDS/AUDIT SERVER COMPONENTS......................................................................10-64
10.6 OTI PERSONNEL.........................................................................................10-65
11 EDUCATION AND TRAINING SUPPORT...........................................................................11-66
11.1 OVERVIEW..............................................................................................11-66
11.2 DOCUMENTATION.........................................................................................11-66
11.3 ON SITE TRAINING......................................................................................11-66
12 RESOURCE PLAN............................................................................................12-67
12.1 SUPPORT ORGANIZATION..................................................................................12-67
12.1.1 Management Services........................................................................12-67
12.1.2 Production Support Team....................................................................12-67
12.1.3 Release Maintenance Team...................................................................12-67
12.1.4 Resource Management........................................................................12-67
APPENDIX A - ROLE DEFINITIONS.........................................................................................70
PRODUCTION SUPPORT ROLES..........................................................................................70
RELEASE MAINTENANCE...............................................................................................71
APPENDIX B - DOCUMENT TEMPLATES.......................................................................................73
CPMA TICKET.......................................................................................................74
OPTICS TICKETS....................................................................................................75
EMERGENCY CHANGE APPROVAL.........................................................................................77
CHANGE REQUEST FORMS..............................................................................................78
OPS Change Request............................................................................................78
Development Evaluation........................................................................................79
Change Evaluation.............................................................................................79
Change Status & Updates.......................................................................................80
DESIGN PROPOSAL...................................................................................................81
DETAIL DESIGN DOCUMENT............................................................................................86
TEST PLAN.........................................................................................................90
RELEASE NOTES.....................................................................................................96
RESOURCE CHANGE REQUEST..........................................................................................102
APPENDIX C - PRODUCTION SUPPORT AND MAINTENANCE RELEASE SERVICES ENVIRONMENT ASSUMPTIONS.............................103
PRODUCTION SUPPORT ENVIRONMENTS..................................................................................103
MAINTENANCE RELEASE ENVIRONMENTS.................................................................................103
SIZING NEW ENVIRONMENTS..........................................................................................103
APPENDIX D - RELEASE SCHEDULE........................................................................................105
</TABLE>
18
<PAGE> 19
<TABLE>
<S> <C>
APPENDIX E -- SECURITY / ACCESS REQUIREMENTS.........................................................................107
APPENDIX F - HARDWARE CONSIDERATIONS.................................................................................108
CURRENT CONFIGURATION............................................................................................108
SERVER MAINTENANCE...............................................................................................109
CHANGE MANAGEMENT................................................................................................110
ENVIRONMENTAL MANAGEMENT.........................................................................................110
APPENDIX G- GLOSSARY OF TERMS........................................................................................111
</TABLE>
19
<PAGE> 20
1 PURPOSE
The purpose of this document is to describe in detail the application support
services ("Services") required for the Order Profile System (OPS) application
component of the OptiMark Trading System (OTS) of OptiMark Technologies
Incorporated (OTI), which will be executed by ISM Information Systems Management
Corporation (ISM), specifically the Professional Services, Securities Industry
Services (ISM).
20
<PAGE> 21
2 BACKGROUND
The application software Order Profile System (OPS Application), provided by
ISM, represents one component of the overall OTS being operated by OTI. From an
application software view, OTS consists of eight (8) major application
components: Graphical User Interface (GUI), Institutional Server (I/S),
Distribution Server (D/S), Order Profile System (OPS), Matching Engine Complex
(MEC), Gateway Server, Pacific Stock Exchange application (PCX) and Audit
Server.
The major purpose of the OPS Application component is to receive orders,
maintain the order book of record, schedule matching cycles,
receive/log/broadcast executions from the MEC, and broadcast market information
to the external users of OTS. In order to provide this functionality, it is
necessary for the OPS to connect to several of the other application components
including D/S, Pacific Stock Exchange (PCX), Gateway Servers and the MEC.
OPTIMARK TRADING SYSTEM ARCHITECTURE
[GRAPHIC DESCRIBING OPTIMARK TRADING SYSTEM ARCHITECTURE]
The implementation of OTS has been completed and this new technology was
launched into production for the securities industry on January 28, 1999. Now
that OTS is in production, it is necessary for the formalization of production
maintenance for the overall application.
21
<PAGE> 22
3 OVERVIEW
The maintenance of the OPS Application will involve a complex set of services
that are described in this document. The relationships between the different
services and their corresponding dependencies will also be described. The
Services being implemented include the following:
- production support,
- change management,
- modifications and enhancements,
- release management,
- operations support,
- education, and
- training.
These Services need to be performed in varying degrees depending on the type of
application environment they are being performed in. An application environment
is the physical location on a unit of computer hardware in which the OPS
Application resides and operates. There are currently nine OPS Application
environments that can be categorized into one of following four environment
types:
- Production environment,
- Integration Test environment,
- Quality Engineering environment, and
- Development environment.
The level of skills required by the ISM team to perform the Services is very
high and requires in-depth knowledge of the OPS Application as well as the
relation to each of the other seven (7) OTS application components. During the
first twelve months of the Agreement ISM will be providing the majority of the
Services required for OPS Application maintenance. Over the lifetime of the
Agreement, 24 months, ISM will begin transitioning the maintenance
responsibilities to OTI. ISM and OTI will mutually agree on the transition plan,
schedule and evolution before the end of December 31, 1999.
The Services performed on the Production environment require a high level of
skill and intimate knowledge of the OPS Application. Therefore, the Production
environment will, initially, be supported primarily by ISM staff who possess the
in-depth knowledge of the OPS Application. The support for the Integration Test
environment requires a level similar to the Production environment; the main
difference being the time frame for which a problem can be resolved. Obviously,
problems encountered in the Integration Test environment will not have to be
resolved with the same urgency. ISM staff will remain actively involved in the
Integration Test environment, for the duration of this Agreement, to facilitate
a smooth migration of the OPS Application from the Integration Test environment
to the Production environment. For Quality Engineering and Development
environments, ISM will perform a larger role during the intitial 12 months of
this Agreement followed by the beginning or the transitioning of tasks to OTI.
The parties agree that the following matrix depicts the view of the
responsibilities of each party relative to the Services as of the Effective
Date. Over the term of this Agreement it is the
22
<PAGE> 23
intention of the parties that the dependency on ISM resources is to be reduced
so that ISM is only involved in the support of the Production and Integration
Test environments while OTI assumes overall responsibilities for the other
environments.
ISM PCX SUPPORT SUMMARY
<TABLE>
<CAPTION>
SIS/
SIS/ Production
Production Integration QA/Y2K PCX Testing Test MEC
------------------------------------------------------------------------------------------------------------------------------
Function / Task P T B C L N Q
------------------------------------------------------------------------------------------------------------------------------
PROBLEM MANAGEMENT
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Problem tracking 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Incident Owner 2 2 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
PROBLEM DETERMINATION
------------------------------------------------------------------------------------------------------------------------------
Investigation 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Secure Access 1 1 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
OptiMark Information Center Updates 1 3 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
CPMA Updates 1 1 1 1 3 3 1
------------------------------------------------------------------------------------------------------------------------------
Internal Escalation 1 3 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
OPS Application Consulting 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
PROBLEM RESOLUTION
------------------------------------------------------------------------------------------------------------------------------
Root Cause Analysis 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Recommended Resolution 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Emergency Changes 1 3 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
Application Configuration/Data Modification 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Operating System/Hardware Issues 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Tracking 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
CHANGE MANAGEMENT
------------------------------------------------------------------------------------------------------------------------------
Source Management 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Tracking and Prioritization 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Change Meetings 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Document Release Notes 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Fallback Procedures 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Risk Assessment 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Scheduling Conflicts 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Approval and Review Process 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
Implementations and Walkthroughs 1 1 2 2 2 2 2
------------------------------------------------------------------------------------------------------------------------------
Requirement Analysis 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Architectural Review 1 1 3 3 1 1 3
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Integration/
Clearing
Broker
GUI Testing
-------------------------------------------------------------------
Function / Task R S
-------------------------------------------------------------------
PROBLEM MANAGEMENT
-------------------------------------------------------------------
<S> <C> <C>
Problem tracking 1 1
-------------------------------------------------------------------
Incident Owner 2 2
-------------------------------------------------------------------
PROBLEM DETERMINATION
-------------------------------------------------------------------
Investigation 1 1
-------------------------------------------------------------------
Secure Access 3 3
-------------------------------------------------------------------
OptiMark Information Center Updates 3 3
-------------------------------------------------------------------
CPMA Updates 1 1
-------------------------------------------------------------------
Internal Escalation 3 3
-------------------------------------------------------------------
OPS Application Consulting 1 1
-------------------------------------------------------------------
PROBLEM RESOLUTION
-------------------------------------------------------------------
Root Cause Analysis 1 1
-------------------------------------------------------------------
Recommended Resolution 1 1
-------------------------------------------------------------------
Emergency Changes 3 3
-------------------------------------------------------------------
Application Configuration/Data Modification 1 1
-------------------------------------------------------------------
Operating System/Hardware Issues 2 2
-------------------------------------------------------------------
Tracking 1 1
-------------------------------------------------------------------
CHANGE MANAGEMENT
-------------------------------------------------------------------
Source Management 1 1
-------------------------------------------------------------------
Tracking and Prioritization 1 1
-------------------------------------------------------------------
Change Meetings 1 1
-------------------------------------------------------------------
Document Release Notes 1 1
-------------------------------------------------------------------
Fallback Procedures 1 1
-------------------------------------------------------------------
Risk Assessment 1 1
-------------------------------------------------------------------
Scheduling Conflicts 1 1
-------------------------------------------------------------------
Approval and Review Process 1 1
-------------------------------------------------------------------
Implementations and Walkthroughs 2 1
-------------------------------------------------------------------
Requirement Analysis 2 2
-------------------------------------------------------------------
Architectural Review 3 3
-------------------------------------------------------------------
</TABLE>
23
<PAGE> 24
<TABLE>
<CAPTION>
SIS/
SIS/ Production
Production Integration QA/Y2K PCX Testing Test MEC
------------------------------------------------------------------------------------------------------------------------------
Function / Task P T B C L N Q
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Detailed Design 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Development 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Integration Test 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Acceptance Test 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Requirements Issues 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
OFF-SITE SUPPORT
------------------------------------------------------------------------------------------------------------------------------
OPS Cell/Pager Support 1 1 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
Remote Access 1 1 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
Onsite Support 1 3 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
PCX/Los Angeles 1 1 3 1 3 3 3
------------------------------------------------------------------------------------------------------------------------------
OIC Help Desk/30 Montgomery 1 1 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
OTI Testing Support/10 Exchange 1 1 1 3 3 3 1
------------------------------------------------------------------------------------------------------------------------------
RELEASE MANAGEMENT
------------------------------------------------------------------------------------------------------------------------------
RMS support 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Macros and tools 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Release build 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Emergency releases 1 1 3 3 3 3 3
------------------------------------------------------------------------------------------------------------------------------
Release promotions 1 1 1 1 1 1 1
------------------------------------------------------------------------------------------------------------------------------
OPERATIONS SUPPORT
------------------------------------------------------------------------------------------------------------------------------
Computer Operations 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Production Control 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Technical Services 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
Security administration 1 1 2 2 1 1 2
------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND TRAINING SUPPORT
------------------------------------------------------------------------------------------------------------------------------
Documentation 1 1 2 2 3 3 2
------------------------------------------------------------------------------------------------------------------------------
Training 1 1 2 2 3 3 2
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Legend
-----------------------------------------------------------
SIS resources required 1
-----------------------------------------------------------
Performed by OTI 2
-----------------------------------------------------------
Not Applicable 3
-------------------------------------------------- --------
</TABLE>
<TABLE>
<CAPTION>
Integration/
Clearing
Broker
GUI Testing
-------------------------------------------------------------------
Function / Task R S
-------------------------------------------------------------------
<S> <C> <C>
Detailed Design 2 2
------------------------------------------------------------------
Development 2 2
------------------------------------------------------------------
Integration Test 2 2
------------------------------------------------------------------
Acceptance Test 2 2
------------------------------------------------------------------
Requirements Issues 2 2
------------------------------------------------------------------
OFF-SITE SUPPORT
------------------------------------------------------------------
OPS Cell/Pager Support 3 3
------------------------------------------------------------------
Remote Access 3 3
------------------------------------------------------------------
Onsite Support 3 3
------------------------------------------------------------------
PCX/Los Angeles 3 3
------------------------------------------------------------------
OIC Help Desk/30 Montgomery 3 3
------------------------------------------------------------------
OTI Testing Support/10 Exchange 1 1
------------------------------------------------------------------
RELEASE MANAGEMENT
------------------------------------------------------------------
RMS support 2 1
------------------------------------------------------------------
Macros and tools 2 1
------------------------------------------------------------------
Release build 2 2
------------------------------------------------------------------
Emergency releases 3 3
------------------------------------------------------------------
Release promotions 1 1
------------------------------------------------------------------
OPERATIONS SUPPORT
------------------------------------------------------------------
Computer Operations 2 1
------------------------------------------------------------------
Production Control 2 2
------------------------------------------------------------------
Technical Services 2 2
------------------------------------------------------------------
Security administration 2 2
------------------------------------------------------------------
EDUCATION AND TRAINING SUPPORT
------------------------------------------------------------------
Documentation 2 2
------------------------------------------------------------------
Training 2 2
------------------------------------------------------------------
------------------------------------------------------------------
Legend
----------------------------------------------
SIS resources required
----------------------------------------------
Performed by OTI
----------------------------------------------
Not Applicable
----------------------------------------------
</TABLE>
24
<PAGE> 25
4 DOCUMENT FORMAT
In order to simplify the documented description of the Services that are
required within each of the application environments, the document has been
structured to describe the full set of Services required in the Production
environment and then each subsequent environment is described using this same
format. A matrix of each Service component is mapped against each of the nine
(9) environments depicting whether OTI or ISM is performing the Service.
* [Exhibit A pages 16-112]
--------
* This confidential portion has been omitted and filed separately with the
Commission.
25
<PAGE> 26
SCHEDULE "B"
Rate Schedule
*
----------
* This confidential portion has been omitted and filed separately with the
Commission.
26
