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Globalware Physical Fulfillment and Delivery Hosting Agreement

ASP Hosting Agreement

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SPSS INC | GlobalWare Solutions, Inc

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Title: Globalware Physical Fulfillment and Delivery Hosting Agreement
Date: 4/7/2008
Industry: Software and Programming     Sector: Technology

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Exhibit 10.4
  Statement of Work
 
Globalware PFD Housting
    
SPSS — Globalware Physical Fulfillment and Delivery Hosting Agreement
Statement of Work

Page 1of 16


 
  Statement of Work
 
Globalware PFD Housting
    
         
Table of Contents        
 
1. Terms and Conditions
    3  
1.1 Duration of Statement of Work
    3  
1.2 Change Control
    3  
1.3 Deviation
    3  
2. Background/Summary/Overview
    3  
2.1 Business Engagement
    3  
2.2 Quality Assurance
    4  
3. Definitions
    4  
4. Scope of Services & Service Level Agreements
    4  
4.1 Supply Management
    4  
4.2 Inventory Management
    5  
4.3 Physical Order Details
    6  
4.4 Returns and Return Material Authorization (RMA)
    6  
4.5 Reports, Automated Files & Emails, Tracking
    7  
4.6 Hours of Operation
    8  
4.7 Incident Reporting and Handling
    8  
5. Training
    9  
6. Backup Copies
    9  
8. Assumptions, Pre-requisites and Dependencies
    9  
9. Service Level Remedies
    9  
10. Roles and Responsibilities
    11  
10.1 Client Team Management — GWS
    11  
10.2 Account Management — GWS & SPSS
    12  
10.3 Resources
    12  
10.4 Meetings
    13  
11. Pricing, Commitment & Invoicing
    13  
11.1 Invoicing
    13  
11.2 Physical Fulfilment and Distribution Pricing
    14  
12. Acceptance
    16  

Page 2 of 16


 
  Statement of Work
 
Globalware PFD Housting
    
Statement of Work
The work set forth below is being completed under the terms and conditions of this Statement of Work (hereinafter “SOW”) and the ‘Globalware Solutions Service Agreement’, dated May 10, 2007 (hereinafter “Agreement”), between GlobalWare Solutions, Inc. (“GWS”) and SPSS Inc. (“SPSS”).
1. Terms and Conditions
1.1 Duration of Statement of Work
This Statement of Work (SOW) is for the monthly operations of SPSS’ Physical Fulfilment and Distribution (PFD) program. This SOW is for a term of two (2) years commencing on the Effective Date (hereinafter the “Initial Term”). This Statement of Work shall automatically renew for successive one (1) year terms unless it is terminated in accordance with the Agreement, Section 9 of this Statement or a party informs the other party it does not wish to renew this Statement of Work as set forth below (hereinafter “Renewal Term”).
If GWS does not wish to renew this SOW after the Initial Term or any Renewal Term, then GWS must provide SPSS at least one (1) year written notice that they do not wish to renew this SOW. If SPSS does not wish to renew this SOW after the Initial Term or any Renewal Term, then SPSS must notify GWS in writing at least 90 days prior to the end of the current term that they do not wish to renew. Other than the above provisions this SOW cannot be terminated without cause. Except for as provided in Section 9 below, terms and conditions for termination with cause are defined in Section 4 of the Agreement.
1.2 Change Control
A change in scope or needed enhancements is likely to occur and can/ will be identified by either GWS or SPSS. Any changes in scope will be managed by the GWS Account Management Team in conjunction with the appropriate SPSS counterparts. No enhancements or modifications will be made without written approval of SPSS and GWS.
1.3 Deviation
In the event that there is deviation from this SOW, GWS and SPSS will mutually discern ownership of issue and whose responsibility it will be to provide corrective action according to respective procedures.
2. Background/Summary/Overview
2.1 Business Engagement
SPSS has chosen to engage with GWS, on a non-exclusive basis, as one of its providers of physical product and order fulfilment (PFD) in North America, EMEA, and Singapore. The following details in this SOW will meet the needs of SPSS business requirements inclusive of services and processes, ongoing operational activities and service level agreements (SLAs).

Page 3 of 16


 
  Statement of Work
 
Globalware PFD Housting
    
2.2 Quality Assurance
GWS is a certified ISO 9001-2000 company and is governed by its ISO procedures to manage and ensure the service levels within
3. Definitions
“Data Share” GWS’ online system that allows SPSS to upload new or updated product information and tracks the proofing in GWS’ environment.
“GlobalView “ GWS’ online systems that provides SPSS information, which includes but is not limited to order tracking and inventory counts.
“Ongoing Services” means the service being provided by GWS in hosting and delivering SPSS’ products through physical fulfilment.
“Term” means the term of this Statement of Work.
“Support Services” means the support, maintenance, and training services that GWS will provide SPSS with respect to the PFD.
“Professional Services” refers to services that GWS may provide to SPSS outside of the terms and conditions of this Statement of Work. Professional Services may encompass, but not be limited to, consulting advisory, development, and/or integration services.
“Standard Reports” are any reports that are provided with the GlobalView system, or any reports that can be created, configured, and modified solely by SPSS using end-user reporting tools provided by GWS.
“Custom Reports” are any reports provided to SPSS by GWS that require GWS programming resources to create, configure, or modify at the written request of SPSS.
4. Scope of Services & Service Level Agreements
4.1 Supply Management
4.1.1 Forecasts and POs
  §   SPSS will provide forecasts for new products to be released for each GWS location
 
  §   SPSS will provide forecasts for existing products based on rolling forecasts and against historical reports and current inventory
 
  §   SPSS will provide POs for GWS supply and third party purchases according forecasts prior to GWS prurchasing or manufacturing components (e.g., CDs or other media; supplies for marketing materials).

Page 4 of 16


 
  Statement of Work
 
Globalware PFD Housting
    
4.1.2 Product Lead Times from “Manufacturing Ready”
             
Item   North America   EMEA   Singapore
1. GWS Conventional Print & Media Components
  5 to 10 Business Days   5 to 10 Business Days   5 to 10 Business Days
 
2. GWS Short Run Demand Print & Media
  3 to 5 Business Days   3 to 5 Business Days   3 to 5 Business Days
 
3. GWS Sourced Packaging 1
  10 to 15 Business Days   10 to 15 Business Days   10 to 15 Business Days
 
4. SPSS 3 rd Party Components 2
  As scheduled and tracked by GWS AM   As scheduled and tracked by GWS AM   As scheduled and tracked by GWS AM
 
5. GWS Finished Goods Assembly Ready Components
  Additional 1 to 2 Business Days from the days set forth in 1, 2, 3 and 4 above.   Additional 1 to 2 Business Days from the days set forth in 1, 2, 3 and 4 above.   Additional 1 to 2 Business Days from the days set forth in 1, 2, 3 and 4 above.
 
6. GWS Finished Goods Inventory Available for Order Fulfilment
  Next Business Day from Assembly   Next Business Day from Assembly   Next Business Day from Assembly
 
1   GWS Sourced Packaging is defined as components obtained by GWS from third parties on behalf of SPSS for fulfillment.
 
2   SPSS 3 rd Party Components are defined as components obtained from third parties by SPSS and shipped to GWS for fulfilment.
4.2 Inventory Management
4.2.1 Requirements
GWS’ inventory and manufacturing services are an integral piece of the relationship between SPSS and GWS. GWS will maintain and manufacture inventory on behalf of SPSS. Requirements are as follow:
  §   Cycle Counting — GWS will validate SPSS inventory counts and compare to SPSS and GWS records to ensure that the SPSS inventory represented in SPSS accounting systems and on GWS’ systems is accurate. GWS will maintain a regularly scheduled cycle count program.
 
  §   CD Replication — GWS will manufacture CD’s on behalf of SPSS Inc. utilizing the guidelines provided by SPSS.
 
  §   Warehousing — GWS inventory is warehoused on pallets on site.
 
  §   Inventory Transfer Pick-Up — A key part of SPSS inventory management requires that bulk shipments can be made from various warehousing plants for either distribution to a supplier, customer or to another SPSS warehouse facility.
 
  §   Kitting — SPSS will utilize GWS to assemble and box together multiple products which make up a kit.
 
  §   Inventory and Product Availability — GWS will follow SPSS guidelines related to making new products and inventory available for shipment to our customers, distributors or another SPSS warehouse facility.
 
  §   Pick Accuracy Rate — GWS will handle the preparation required for compiling all of the products, labels, etc. required to fulfill any given order. SPSS requires a commitment to the accuracy levels for ensuring the customer receives what was depicted on the order.
 
  §   Inventory Dedication — GWS inventory is dedicated per agreement for system-to-system orders or web-store.

Page 5 of 16


 
  Statement of Work
 
Globalware PFD Housting
    
  §   GlobalView — GWS component and Finished Goods inventory can be viewed in GlobalView.
4.3 Physical Order Details
4.3.1 Order Fulfilment
  §   SPSS systemic feeds of order batch files will be sent and processed at scheduled intervals.
 
  §   SPSS can enter orders manually into GlobalView.
 
  §   Orders received Monday to Friday are processed and fulfilled same day for stocked Finished Goods according to the table in section 4.6 below.
 
  §   Order fulfilment can be arranged for other hours or days as required, but must be planned in advance with reasonable amount of notice and carrier availability.
 
  §   GWS generates pick lists, packing slips, demand print License Authorization Code letters, and shipping labels according to SPSS specification.
 
  §   GWS will use shipping carriers as specified on orders received from SPSS. GWS accounts to be used.
 
  §   Requests for orders to be expedited, changed or cancelled will be accommodated whenever possible
 
  §   Export shipments require a SPSS signed Power of Attorney Form (on file at GWS)
 
  §   Export orders are processed through:
  o   North America: US Government MK Denial’s Denied/ Restricted Parties List
 
  o   EMEA: US Government MK Denial’s Denied/ Restricted Parties List
 
  o   Singapore: US Government MK Denial’s Denied/ Restricted Parties List
  §   SPSS will track any aspect of order status and customize reports in GV
 
  §   GWS will notify SPSS of undeliverable orders
4.4 Returns and Return Material Authorization (RMA)
4.4.1 General Returns
  §   GWS will receive returns at the locations in the below table — Attn: SPSS Returns
 
  §   GWS inspects material for external condition and contacts SPSS for disposition including the handling of serial numbers and LACs and moves material accordingly
4.4.2 RMA
  §   RMA is received at the locations in the below table — Attn: SPSS RMA
 
  §   GWS inspects material for external condition and handles material according to RMA instructions
 
  §   GWS or SPSS can enter and process RMA in GV which includes instructions for disposition
4.4.3 Return Locations
     
North America
  Globalware Solutions, 200 ward Hill Ave, Haverhill, MA 01835
EMEA
  Globalware Solutions, European Manufacturing & Distribution Center Parellaan 70,2132 WS HOOFDDORPThe Netherlands
Singapore
  Globalware Solutions, 9 Changi South Street 3 #0707 Singapore 486361

Page 6 of 16


 
  Statement of Work
 
Globalware PFD Housting
    
4.5 Reports, Automated Files & Emails, Tracking
It is expected that the following reports will be available/provided to SPSS:
                 
Report(s)   Type / Source   Intended Audience   Frequency    
SPSS Usage by Month
  GWS GlobalView   Fulfilment & Distribution   Monthly    
SPSS Daily Reorder Point
  GWS GlobalView   Fulfilment & Distribution   Daily    
SPSS Review Reorder Points Set
  GWS GlobalView   Fulfilment & Distribution   Ad-hoc    
SPSS Component Inventory
  GWS GlobalView   Fulfilment & Distribution   Ad-hoc    
SPSS-Finished Goods Inventory
  GWS GlobalView   Fulfilment & Distribution   Ad-hoc    
Order Receipt File
  GWS Automated System
File
  Oracle Log File   Every 5 minutes — 24X7    
Error Holds, Ship Date Holds, Export Holds, Inventory Holds
  GWS GlobalView   Order Management
Fulfilment & Distribution
  Ad-hoc    
Ship Confirm File
  GWS Automated System
File
  Oracle Order Mgmt Module   Twice per day    
Order Confirmation
  Automated Email   SPSS Customer   Ad-hoc    
Order Tracking
  GWS GlobalView   Sales, Order Management
Fulfilment & Dist Customer
Service
  Ad-hoc    
RMA
  GWS GlobalView   Customer Service   Ad-hoc    
Address Correction Report
  GWS Email   Fulfilment & Distribution   Monthly    
Shipping Affidavits
  GWS Email   Fulfilment & Distribution   Monthly/Quarterly    
Invoices
  GWS Email & USPS   Fulfilment & Distribution   Monthly — by the 5th day    
Re-order point
  GWS GlobalView   Fulfilment & Distribution   Bi-Weekly    
Re-order point flag
  GWS GlobalView   Fulfilment & Distribution   Daily    
Inventory Reports
  GWS GlobalView   Accounting Fulfilment & Distribution   Weekly/Monthly    

Page 7 of 16


 
  Statement of Work
 
Globalware PFD Housting
    
All reports are for standard reporting available within GWS reporting systems. Any customization requested by SPSS will be quoted via a statement of revision.
4.6 Hours of Operation
                     
        Hours of            
        Operation   Hours of   Hours of    
Order and Account   Days of   North   Operation   Operation   Response
Inquiries   Operation   America   EMEA   Singapore   Time
Daily
  Monday — Friday   8am — 5 pm CST   8am — 6pm CET   8 am — 6pm SGT   Acknowledgement Within 1 hours of notification
Last Business Day of Month
  Monday — Friday   8am —

 
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