Weather Company Energy and Power Products

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1 Service Weather Company Energy and Power Products This Service (SD) describes the Cloud Service IBM provides to Client. Client means the contracting party and its authorized users and recipients of the Cloud Service. The applicable Quotation and Proof of Entitlement ("PoE") are provided as separate Transaction Documents. 1. Cloud Service The IBM Cloud Service for Weather Company Energy and Power Products (Cloud Service) uses the application programming interfaces (API's) which provide Client with access to Content as described in the following IBM Cloud Service offerings (collectively, the "Weather Company Energy and Power Products"). "Content" means weather data, both historical and forecasted, delivered via the Cloud Service (including without limitation forecasts, maps, alerts and graphs) as described in this SD. 1.1 Weather Company Energy Trader North America Standard Gas North America Standard Power months 1 through 5. Forecasts and observations are provided for over 125 cities across North America day forecasts provided for both cities and the Natural Gas Regions across North America.* Product specifically geared towards companies that are only trading Natural Gas in North America. months 1 through 5. Forecasts and observations are provided for over 125 cities across North America day forecasts provided for both cities and Power Regions across North America.* Product specifically geared towards companies that are only trading Electricity in North America. North America Basic months 1 through 5. Forecasts are provided for over 50 cities across North America day forecasts provided for both cities and Natural Gas Regions across North America.* Product specifically geared towards small companies trading natural gas in North America with a limited budget. Europe months 1 through 5. Forecasts are provided for over 100 cities across Europe day forecasts provided for the following set of countries: UK, Ireland, France, Portugal, Spain, Benelux, Austria, Switzerland, Germany, Denmark, Finland, Sweden, Norway, Greece, Italy, Poland, Turkey, Ukraine, Czech Republic, Slovakia, Baltic Region, Western Russia, SE Europe. Product specifically geared towards companies that are trading Power and/or Natural Gas in the European market. i (06/2017) Page 1 of 10

2 Mexico months 1 through 5. Forecasts are provided for over 35 cities across Mexico day forecasts provided for both cities and Power Demand Regions across Mexico.* Product specifically geared towards companies involved in trading or has exposure to the Mexican market. Asia months 1 through 5. Forecasts are provided for over 30 cities across Asia where weather impacts natural gas demand day forecasts provided for the following set of countries: China, Japan, S. Korea. Product specifically geared towards companies that are trading Natural Gas/LNG in Asia or who are trading the European market and want to monitor weather in Asia for potential market impact in Europe. Australia months 1 through 5. Forecasts are provided for cities across Eastern Australia where weather impacts natural gas and power demand. An example of cities in which 1-15 day forecasts are provided for includes Sydney, Brisbane and Melbourne. Product specifically geared towards companies that are trading the Australian energy markets. North America Premium National months 1 through 5. Forecasts and observations are provided for over 180 cities across North America day forecasts provided for cities, power regions and natural gas regions across North America.* Service specifically geared towards companies that are trading power and natural gas across all of North America. North America Premium East months 1 through 5. Forecasts and observations are provided for over 100 cities across North America day forecasts provided for cities, power regions across the Eastern half of North America and natural gas regions.* Service specifically geared towards companies that are trading power in regions located in the Eastern half of North America and potentially natural gas as well. i (06/2017) Page 2 of 10

3 North America Premium West months 1 through 5. Forecasts and observations are provided for over 100 cities across North America day forecasts provided for cities, power regions across the Western half of North America and natural gas regions.* Service specifically geared towards companies that are trading power in regions located in the Western half of North America and potentially natural gas as well. North America Advanced Weather Add-on Europe Advanced Weather Add-on Asia Advanced Weather Add-on Australia Advanced Weather Add-on Global Blog Point Forecasts Weather Company Energy Trader Briefings An add-on service to Energy Trader North America, the Advanced Weather Add-on provides access to an additional suite of products providing advanced meteorological insight to further help traders determine weather's impact on energy commodity prices. Package provides access to the following 5 features: 1). Proprietary and Weather Model Sub-Seasonal Forecasts. 2). Detailed Sub-Seasonal Forecast discussion. 3) Day Weather Model forecasts for individual cities. 4). Weather Model Cluster Analysis 5). Weather Model Teleconnection Forecasts. An add-on service to Energy Trader Europe, the Advanced Weather Add-on provides access to an additional suite of products providing advanced meteorological insight to further help traders determine weather's impact on energy commodity prices. Package provides access to the following 5 features: 1). Proprietary and Weather Model Sub-Seasonal Forecasts. 2). Detailed Sub-Seasonal Forecast discussion 3) Day Weather Model forecasts for individual cities. 4). Weather Model Cluster Analysis 5). Weather Model Teleconnection Forecasts. An add-on service to Energy Trader Asia, the Advanced Weather Add-on provides access to an additional suite of products providing advanced meteorological insight to further help traders determine weather's impact on energy commodity prices. Package provides access to the following 4 features: 1). Weather Model Sub-Seasonal Forecasts. 2) Day Weather Model forecasts for individual cities. 3). Weather Model Cluster Analysis 4). Weather Model Teleconnection Forecasts. An add-on service to Energy Trader Australia, the Advanced Weather Addon provides access to an additional suite of products providing advanced meteorological insight to further help traders determine weather's impact on energy commodity prices. Package provides access to the following 4 features: 1). Weather Model Sub-Seasonal Forecasts. 2) Day Weather Model forecasts for individual cities. 3). Weather Model Cluster Analysis 4). Weather Model Teleconnection Forecasts. The Weather Company energy meteorologists constantly are monitoring where weather is impacting the energy commodity markets. When stories of interest are identified, meteorologists will issue a detailed blog post highlighting the key takeaway message along with a detailed analysis. Blog posts are issued on ad-hoc basis as relevant topics are identified. Point Forecast service offers Clients the ability to receive a customized text based file containing the latest Weather Company Forecast and/or observations. Client provides the specific stations & weather parameters they wish to receive as well as details on temporal frequency of data (hourly or daily) and specific format. Data files can be hosted on a SFTP server or sent directly via . For the North American Energy Trader who has a minimal budget, the Briefing service provides the user access to a daily report delivered each business morning outlining the latest 1-15 day forecast and thoughts from the Weather Company energy forecast team. i (06/2017) Page 3 of 10

4 Consultation Service Standard Consultation Service Premium The Standard Consultation Service provides a Client access to speak to a Weather Company energy meteorologist for a defined 15 minute window each business day. Service can be offered sometime during the period of 7am to 5pm local time, pending meteorologist availability. IBM and Client will determine an agreeable time for consultation. The Premium Consultation Service provides a Client access to speak to a Weather Company energy meteorologist for a defined 15 minute window each business day. Service will be offered from 7-8am local time, pending meteorologist availability. IBM and Client will determine an agreeable time for consultation. 1.2 Weather Company Seasonal Forecasts for Energy and Utilities Weather Company Seasonal North America Weather Company Seasonal Europe Weather Company Seasonal Asia Weather Company Seasonal South America Weather Company Sub-Seasonal North America Weather Company Sub-Seasonal Europe Weather Company Sub-Seasonal South America and precipitation forecasts for the next 5 months for North America. Discussion is issued the Tuesday of the 2nd full week of the month and updated again during the last week of the month. and precipitation forecasts for the next 5 months for Europe. Discussion is issued the Tuesday of the 2nd full week of the month and updated again during the last week of the month. and precipitation forecasts for the next 5 months for Asia. Discussion is issued the last week of the month. and precipitation forecasts for the next 5 months for South America. Discussion is issued the last week of the month. and precipitation forecasts for weeks 3, 4, & 5 for North America. Discussion is updated every Tuesday at ~11am ET. and precipitation forecasts for weeks 3, 4, & 5 for Europe. Discussion is updated every Wednesday at ~11am ET. and precipitation forecasts for weeks 3, 4, & 5 for South America. Discussion is updated every Friday by 5pm ET. 1.3 Forecasts Forecasts PJM 1-15 day forecast of the expected electricity demand in the PJM Power operator of the PJM Power Region.* i (06/2017) Page 4 of 10

5 Forecasts ERCOT Forecasts MISO Forecasts CAISO Forecasts NYISO Forecasts ISO-NE 1-15 day forecast of the expected electricity demand in the ERCOT Power operator of the ERCOT Power Region.* 1-15 day forecast of the expected electricity demand in the MISO Power operator of the MISO Power Region.* 1-15 day forecast of the expected electricity demand in the CAISO Power operator of the CAISO Power Region.* 1-15 day forecast of the expected electricity demand in the NYISO Power operator of the NYISO Power Region.* 1-15 day forecast of the expected electricity demand in the ISONE Power operator of the ISO-NE Power Region.* * Regions are as defined or understood by the Federal Energy Regulatory Commission, U.S. Energy Information Administration or CENACE (The National Energy Control Center of Mexico). 1.4 Weather Company Power Generation Forecasts Weather Company Wind Power Generation Forecasts Trained Weather Company Wind Power Generation Forecasts Untrained Weather Company Solar Power Generation Forecasts Trained Weather Company Solar Power Generation Forecasts Untrained 1-7 day forecasts of expected wind power generation for the given wind farm. The model generating the forecast is trained using historical wind speed observations from the wind farm which are provided by the Client. Forecasts are updated every hour and delivered via the SaaS based platform as well as in CSV files hosted on a SFTP server. 1-7 day forecasts of expected wind power generation for the given wind farm. The model generating the forecast is a generic model as historical wind speed observations from the wind farm are not available. Forecasts are updated every hour and delivered via the SaaS based platform as well as in CSV files hosted on a SFTP server. 1-7 day forecasts of expected solar power generation for the given solar farm. The model generating the forecast is trained using historical solar power observations from the solar farm which are provided by the Client. Forecasts are updated every hour and delivered via the SaaS based platform as well as in CSV files hosted on a SFTP server. 1-7 day forecasts of expected solar power generation for the given solar farm. The model generating the forecast is a generic model as historical solar power observations from the solar farm are not available. Forecasts are updated every hour and delivered via the SaaS based platform as well as in CSV files hosted on a SFTP server. Weather Company Power Generation Forecasts are, in part, based on data provided by the European Centre for Medium Range Weather Forecasting (ECMWF). i (06/2017) Page 5 of 10

6 1.5 Hourly North America Hourly National Leveraging data from FOD and COD, 4 day hourly forecasts are updated every hour as well as observations updated every 15 minutes. Data can be visualized in table, charts and an interactive map allowing power traders to be on top of changing weather conditions. Data is delivered via the SaaS based platform as well as via CSV files hosted on a SFTP server. Product is geared towards companies with short-term power traders who are trading power in multiple regions across North America. North America Hourly East Leveraging data from FOD and COD, 4 day hourly forecasts are updated every hour as well as observations updated every 15 minutes. Data can be visualized in table, charts and an interactive map allowing power traders to be on top of changing weather conditions. Data is delivered via the SaaS based platform as well as via CSV files hosted on a SFTP server. Product is geared towards companies with short-term power traders in North America who are trading power in one of the Eastern power regions. North America Hourly West Leveraging data from FOD and COD, 4 day hourly forecasts are updated every hour as well as observations updated every 15 minutes. Data can be visualized in table, charts and an interactive map allowing power traders to be on top of changing weather conditions. Data is delivered via the SaaS based platform as well as via CSV files hosted on a SFTP server. Product is geared towards companies with short-term power traders in North America who are trading power in one of the Western power regions. 1.6 MarketFirst MarketFirst North America MarketFirst Europe MarketFirst provides a skillful prediction of the expected weather model changes up to three hours in advance of the release of the next weather model. Forecasts are provided for the 12Z GFS and 12Z ECMWF and are delivered via the SaaS based platform as well as integrated into products with the Energy Trader platform. MarketFirst provides a skillful prediction of the expected weather model changes up to three hours in advance of the release of the next weather model. Forecasts are provided for the 06Z & 12Z GFS as well as the 00Z & 12Z ECMWF. Forecasts are delivered via the SaaS based platform as well as integrated into products with the Energy Trader platform. 1.7 Model Data Model Data Global platform and for view covering all major continents of the globe. i (06/2017) Page 6 of 10

7 Model Data Africa Model Data Asia Model Data Australia Model Data Europe Model Data North America Model Data South America platform and for views covering the African continent. platform and for views covering the Asian continent. platform and for views covering the Australian continent. platform and for views covering the European continent. platform and for views covering the North American continent. platform and for views covering the South American continent. 2. Security This Cloud Service follows IBM's data security and privacy principles for Cloud Services which are available at and any additional terms provided in this section. Any change to IBM's data security and privacy principles will not degrade the security of the Cloud Service. Client recognizes this Cloud Service does not offer features for the protection of content that contains personal data, sensitive personal data or data subject to additional regulatory requirements. If Client includes such data in its content, it instructs IBM to process such data in accordance with this Agreement after determining that the technical and organizational security measures are appropriate to the risks presented by the processing and the nature of the data to be protected. Client acknowledges that IBM has no knowledge of the types of data that have been included in the content, and cannot make an assessment as to the suitability of the Cloud Services or the security protections in place. 3. Technical Support Technical support for the Cloud Service is provided via or phone. IBM will make available the IBM Software as a Service Support Handbook which provides technical support contact information and other information and processes. Technical support is offered with the Cloud Service and is not available as a separate offering. 4. Entitlement and Billing Information 4.1 Charge Metrics The Cloud Service is sold under one of the following charge metric(s) as specified in the Transaction Document: a. Active User is a unit of measure by which the Cloud Service can be obtained. An Active User is a unique person who has accessed the Cloud Service in any manner directly or indirectly (for example, through a multiplexing program, device or application server) through any means who is assigned to or works at one (or the same in the case of multiple Active Users) physical Client office i (06/2017) Page 7 of 10

8 location. Sufficient entitlements must be obtained to cover the number of Active Users who have accessed the Cloud Service during the measurement period specified in Client's PoE or Transaction Document b. Entity ID is a unit of measure by which the Cloud Service can be obtained. An Entity ID is a unique identifier for any entity represented within the Cloud Service. Sufficient entitlements must be obtained to cover the number of Entity IDs identified in the Cloud Service during the measurement period specified in Client's PoE or Transaction Document. c. Access is a unit of measure by which the IBM Cloud Service can be obtained. An Access is the rights to use the IBM Cloud Service. Client must obtain a single Access entitlement in order to use the IBM Cloud Service during the measurement period specified in Client's PoE or Transaction Document d. Engagement is a unit of measure by which the services can be obtained. An Engagement consists of professional and/or training services related to the IBM Cloud Service. Sufficient entitlements must be obtained to cover each Engagement.\ e. Item is a unit of measure by which the IBM Cloud Service can be obtained. An Item is an occurrence of a specific item that is processed by, managed by, or related to the use of the IBM Cloud Service. Sufficient entitlements must be obtained to cover every Item processed by, managed by, or related to the use of the IBM Cloud Service during the measurement period specified in Client's PoE or Transaction Document. For the purpose of this Cloud Service, Item is defined as the number of cities. 4.2 Overage Charges If Client's actual usage of the Cloud Service during the measurement period exceeds the entitlement stated on the PoE, then Client will be invoiced for the overage, as set forth in the Transaction Document. 4.3 Verification Client will i) maintain, and provide upon request, records, system tools output, and access to Client's premises, as reasonably necessary for IBM and its independent auditor to verify Client's compliance with the Agreement, and ii) promptly order and pay for required entitlements at IBM's then current rates and for other charges and liabilities determined as a result of such verification, as IBM specifies in an invoice. These compliance verification obligations remain in effect during the term of the Cloud Service and for two years thereafter. 5. Term and Renewal Options The term of the Cloud Service begins on the date IBM notifies Client of their access to the Cloud Service, as documented in the PoE. The PoE will specify whether the Cloud Service renews automatically, proceeds on a continuous use basis, or terminates at the end of the term. For automatic renewal, unless Client provides written notice not to renew at least 30 days prior to the term expiration date, the Cloud Service will automatically renew for the term specified in the PoE. For continuous use, the Cloud Service will continue to be available on a month to month basis until Client provides 30 days written notice of termination. The Cloud Service will remain available to the end of the calendar month after such 30 day period. 6. Additional Terms 6.1 General Client agrees IBM may publicly refer to Client as a subscriber to the Cloud Services in a publicity or marketing communication. 6.2 Enabling Software The Cloud Service permits the use of enabling software ("WSI Trader" Android OS app) that Client downloads to Client systems to facilitate use of the Cloud Service. Client may use enabling software only in connection with its use of the Cloud Service. Enabling software is provided subject to the license terms found at: 03.ibm.com/software/sla/sladb.nsf/displaylis/381162EC7EF82A E006B0580?OpenDocument. i (06/2017) Page 8 of 10

9 6.3 Termination of Service Upon expiration or termination of Client's subscription, Client's credentials for accessing the specific Energy product(s) will be deleted. 6.4 Restrictions on Usage a. Client shall not use the Cloud Service or Content to target or trigger advertising, serve advertising based on the Content being associated with the location of any user of a consumer facing technology (e.g., weather-triggered advertising), or use the Cloud Service or Content for any marketing or content-based decisioning. b. Client shall not use the Content as part of any offering of any type emanating from a television or radio broadcast (e.g., over-the-air, cable, satellite) or subscription streaming service (e.g., Sling Television, Netflix, Hulu, Amazon Prime Video, HBO GO, or radio equivalent) delivered on, through or by any means or medium. c. Client's use of the Cloud Service and Content is restricted solely to its own internal use. Client may not engage in any form of electronic reproduction, redistribution or retransmission or resell, sublicense, externally display or exhibit either the Cloud Service or Content, or any parts thereof. d. Client shall i) use commercially reasonable efforts to prevent any portion of the Content from being collected or extracted from Client's computer systems, products or control ("Client's Custody") and ii) promptly notify IBM of any known or reasonably suspected collection or extraction of Content from Client's Custody. The parties shall then discuss in good faith and attempt to determine a commercially reasonable course of action to prevent such activity in the future. In the event the parties fail to agree upon or implement such commercially reasonable course of action within five (5) business days from the initial notice, then IBM shall have the right to suspend delivery of the Content until such time as necessary steps are taken to protect the Content residing in Client's Custody. e. Client shall adhere to privacy policies in connection with Client's access, use, sharing and storage of information collected through or in relation to its use of the Content. f. Client agrees that the Weather Company Energy and Power Products and related specifications and documentation are IBM confidential information and cannot be used or disclosed outside the terms of this SD. Client acknowledges IBM may change the style, form or content of, and eliminate or discontinue segments of, the Content from time to time and at any time in its sole discretion; provided, IBM will include Client in its communications to similarly situated customers regarding material changes in the Content. 6.5 Liability For the purposes of this offering the following are deleted from the Liability and Indemnity section of the Agreement: "ii) damages for body injury (including death); iii) damages to real property and tangible personal property" 6.6 Country Limitations on Usage Client is responsible for, and IBM's obligations under this SD shall be conditioned on Client determining whether its use of the Content is permissible and, to the extent necessary, obtaining, all necessary licenses, permits, approvals or authorizations from any governmental entity or agency in the country in which it operates or uses the Content. 6.7 As Is Materials ALL WEATHER AND WEATHER-RELATED INFORMATION, FORECASTS AND ALERTS, ARE PROVIDED "AS IS", AND IBM SHALL NOT BE RESPONSIBLE OR LIABLE FOR THE ACCURACY, RELIABILITY, COMPLETENESS OR AVAILABILITY OF SUCH MATERIALS. 6.8 Use of Third Party Services The Cloud Service application layer and Client's data and content may be hosted on a third party cloud services infrastructure and platform not managed by IBM. The Cloud Service infrastructure, certain aspects of the Cloud Service platform, and related services, including: data center, servers, storage and network; application and data backup; firewall and threat detection; and APIs for application deployment, i (06/2017) Page 9 of 10

10 monitoring and operation (collectively, the "Third Party Cloud Platform Services") may be hosted and managed by a third party provider. Accordingly, notwithstanding anything in this Service or the base services agreement under which this Cloud Service is provided (e.g. the Cloud Services Agreement) (the "Base Agreement"): a. Obligations of IBM relating to data security and data protection in the Base Agreement, in the description of the Cloud Service's security practices in Section 2 above (Security ), and in the referenced IBM Data Security and Privacy Principles, do not apply to the Third Party Cloud Platform Services or to the Cloud Service to the extent the Cloud Service is dependent on the Third Party Cloud Platform Services. The Cloud Service may not be used for the transmission, storage or processing of any Protected Health Information or of any personal data of individuals residing in the European Union. b. If the provider of the Third Party Cloud Platform Services notifies IBM that it has withdrawn or terminated its services or IBM's or Client's access to such services, IBM may terminate the Cloud Service immediately upon the effective date of such termination by the third party provider by providing notice of termination to Client. c. IBM makes no warranties or conditions, express or implied, and IBM will have no liability to Client regarding the Third Party Cloud Platform Services or to the Cloud Service to the extent dependent on the Third Party Cloud Platform Services. d. Client agrees to indemnify, defend and hold IBM harmless from and against any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to claims against IBM by the Third Party Cloud Platform Services provider) concerning: (a) Client's use of the Cloud Services; (b) breach of this Service, the Base Agreement or violation of applicable law by Client; (c) Client's content or the combination of Client's content with other applications, content or processes, including any claim involving alleged infringement or misappropriation of third-party rights by Client's content or by the use, development, design, production, advertising or marketing of Client's content; or (d) a dispute between IBM and Client. i (06/2017) Page 10 of 10

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