Document:

exv10w3

 

Exhibit 10.3

Jackson Claborn, Inc.

 

• Real Estate Consulting and Appraisal Services •

• Plano, Texas • Southlake, Texas •

www.jacksonclaborn.com

			
	Jimmy H. Jackson, MAI 

Allen W. Gardiner, SRA
	 	David Claborn, MAI

Dod W. Clapp, SRA

September 1, 2006

United Development Funding III, L.P.

1702 N. Collins Boulevard

Suite 100

Richardson, Texas 75080

	 	 	 
	Attn:

	 	Mr. Jeff Shirley, President
	 

	 	UMTH Land Development, L.P.,
	 

	 	It’s general partner

Ladies and Gentlemen:

     You have requested our opinion as an independent advisor (as that term is defined in the
Prospectus of United Development Funding III, L.P. dated May 15, 2006) as to the fairness of the
terms of that certain limited guaranty dated as of the 1st day of August, 2006 by United
Development Funding III, L.P., a Delaware limited partnership, (“UDF III”) for the benefit of
United Mortgage Trust, a real estate investment trust organized under the laws of the state of
Maryland or its permitted successors and assigns, (the “UDF III Guarantee”) and that certain letter
with respect to the Credit Enhancement Fee related to Guaranty of Note by and between United
Development Funding, L.P., a Nevada limited partnership, (“UDF”) and United Development Funding
III, L.P., a Delaware limited partnership (the “UDF III Credit Enhancement Fee Agreement”).

     We understand that pursuant to the UDF III Guarantee and the UDF III Credit Enhancement Fee
Agreement that UDF III will guarantee the repayment of an amount up to $30 Million with respect to
that certain Second Amended and Restated Secured Line of Credit Promissory Note between United
Mortgage Trust (“UMT”) and UDF, and, in exchange for that guarantee, UDF shall pay UDF III each
month in arrears and amount equal to one-quarter of one percent (0.0025%) of the maximum liability
amount. We further understand that the UDF III guarantee shall be reduced $1.00 for every $1.00 by
which the total partners’ equity of UDF exceeds $30 Million and that as of July 31, 2006, UDF total
partners’ equity was $32,522,833.

     We are a full service real estate appraisal and consulting firm. As part of our real estate
appraisal and consulting services, we are regularly engaged in the consultation with regard to real
estate value and finance.

 

Headquarters: 5800 W. Plano Parkway • Suite 220 • Plano, Texas 75093 • (972) 732-0051 • FAX (972) 733-1403

Branch Office: 1560 E. Southlake Blvd. • Suite 220 • Southlake, Texas 76092 • (817) 421-3833 • FAX (817) 421-3844

Page 1 of 3

 

     We are acting as an independent advisor to United Development Funding III, L.P. in
connection with the UDF III Guarantee and the UDF III Credit Enhancement Fee Agreement and will
receive a fee for our services. The opinion fee is not contingent upon the consummation of the
described transaction. In addition, UMTH Land Development, L.P. has agreed to indemnify us for
certain liabilities arising out of our engagement.

     In the course of performing our review and analysis for rendering this opinion, we have: (i)
reviewed the UDF III Guarantee, (ii) reviewed the UDF III Credit Enhancement Fee Agreement, (iii)
reviewed the financial statements of UDF for the period ending July 30, 2006; (iv) conducted
discussions with members of the senior management of UMT, UDF, and UDF III with respect to the
described transaction and the financial outlook of UDF; and (v) conducted such other financial
studies, analyses and investigations and considered such other information as we deemed
appropriate.

     With respect to the data and discussions relating to the business prospects and financial
outlook of UDF, we have assumed, at the direction of management of UDF and UDF III and without
independent verification, that such data has been reasonably prepared on a basis reflecting the
best currently available estimates and judgments of the UDF as to the future financial performance
of UDF. We have further relied on the assurances of senior management of UDF that they are unaware
of any facts that would make such business prospects and financial outlook incomplete or
misleading.

     In rendering our opinion, we have assumed and relied upon the accuracy and completeness of the
financial, legal, tax, operating and other information provided to us by UDF, and have not assumed
responsibility for independently verifying and have not independently verified such information. We
have not assumed any responsibility to perform, and have not performed, an independent evaluation
or appraisal of any of the respective assets or liabilities (contingent or otherwise) of UDF, and
we have not been furnished with any such valuations or appraisals. In addition, we have not assumed
any obligation to conduct, and have not conducted, any physical inspection of the property or
facilities of UDF. Additionally, we have not been asked and did not consider the possible effects
of any litigation or other legal claims.

     Our opinion is subject to the assumptions and conditions set forth herein, speaks only as of
the date hereof, is based on market, economic, financial, legal and other conditions as they exist
and information which we have been supplied as of the date hereof, and is without regard to any
market, economic, financial, legal or other circumstances or events of any kind or nature which may
exist or occur after such date. We have not undertaken to reaffirm or revise this opinion or
otherwise comment upon any events occurring after the date hereof and do not have any obligation to
update, revise or reaffirm our opinion.

     Our opinion expressed herein is provided for the information and assistance of the senior
management of UDF III in connection with its consideration of the UDF III Guarantee and the UDF III
Credit Enhancement Fee Agreement.

Page 2 of 3

 

     Our opinion does not address the merits of the underlying decision by UDF III to provide its
guarantee in exchange for a fee.

     Our opinion addresses solely the fairness of the terms of the UDF III Guarantee and the UDF
III Credit Enhancement Fee Agreement.

     Based on and subject to the foregoing, including the various assumptions and limitations set
forth herein, it is our opinion that, as of the date hereof, that the terms of the UDF III
Guarantee and the UDF III Credit Enhancement Fee Agreement are fair and at least as favorable to
UDF III as such transaction with an unaffiliated party in similar circumstances.

Sincerely,

/s/ Jackson Claborn, Inc.

Jackson Claborn, Inc.

Page 3 of 3exv10w27

 

MASTER SERVICES AGREEMENT

dated as of October 16, 2006,

between

AFFIRMATIVE INSURANCE HOLDINGS, INC.

and

ACCENTURE LLP

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II AGREEMENT TERM; RENEWAL
	 	 	1	 
	2.1 Agreement Term
	 	 	1	 
	2.2 Renewal
	 	 	1	 
	 
	 	 	 	 
	ARTICLE III AGREEMENT STRUCTURE
	 	 	1	 
	3.1 Services Agreements
	 	 	1	 
	 
	 	 	 	 
	ARTICLE IV SERVICES
	 	 	2	 
	4.1 Overview
	 	 	2	 
	4.2 New Services; Primary Supplier
	 	 	2	 
	4.3 Ongoing Cooperation; Planning
	 	 	3	 
	4.4 Reliance on Instructions
	 	 	3	 
	4.5 Client Service Responsibilities
	 	 	3	 
	4.6 Disaster Recovery
	 	 	4	 
	4.7 Excused Obligations
	 	 	4	 
	4.8 Fundamental Assumptions
	 	 	5	 
	 
	 	 	 	 
	ARTICLE V PERFORMANCE METRICS
	 	 	5	 
	5.1 Service Levels
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VI RESOURCES
	 	 	6	 
	6.1 Accenture-Managed Agreements
	 	 	6	 
	6.2 Client-Provided Components
	 	 	7	 
	6.3 Accenture Software
	 	 	8	 
	6.4 Additional Resources
	 	 	8	 
	6.5 Consents; Maintenance
	 	 	9	 
	6.6 Non-Transferred Client Property
	 	 	11	 
	6.7 Further Assurances
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VII SERVICE LOCATIONS
	 	 	11	 
	7.1 Service Locations
	 	 	11	 
	7.2 Access to Client Service Locations and Items
	 	 	11	 
	7.3 Use of Client Service Locations
	 	 	11	 
	7.4 Client Service Location Policies
	 	 	11	 
	7.5 Relocation Resulting from Changes in Laws and Regulations
	 	 	12	 
	7.6 Control of Service Locations
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VIII RELATIONSHIP GOVERNANCE
	 	 	13	 
	8.1 Accenture Services Agreement Executive
	 	 	13	 
	8.2 Client Services Agreement Executive
	 	 	13	 
	8.3 Establishment of Services Agreement Management Steering Committee
	 	 	13	 

i

 

	 	 	 	 	 
	8.4 Key Management Positions
	 	 	14	 
	8.5 Reports
	 	 	15	 
	8.6 Meetings and Conference Calls
	 	 	15	 
	8.7 Relationships with Client Contractors
	 	 	15	 
	8.8 Accenture Subcontractors
	 	 	15	 
	8.9 Contract Change Control
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IX HUMAN RESOURCE MATTERS
	 	 	17	 
	9.1 General Principles Regarding Accenture Personnel
	 	 	17	 
	9.2 Employee Problem-Solving
	 	 	17	 
	9.3 Limitations on Recruiting
	 	 	18	 
	 
	 	 	 	 
	ARTICLE X PRICE & PAYMENT
	 	 	18	 
	10.1 Service Charges
	 	 	18	 
	10.2 Reimbursement of Expenses
	 	 	19	 
	10.3 Pass-Through Expenses
	 	 	19	 
	10.4 [Reserved]
	 	 	19	 
	10.5 Cost of Living Adjustments
	 	 	19	 
	10.6 Currency
	 	 	20	 
	10.7 Invoices; Method of Payment; Finance Charges
	 	 	20	 
	10.8 Proration
	 	 	21	 
	10.9 Disputed Charges
	 	 	21	 
	10.10 Taxes
	 	 	22	 
	 
	 	 	 	 
	ARTICLE XI REPRESENTATIONS AND WARRANTIES
	 	 	23	 
	11.1 Accenture Representations and Warranties
	 	 	23	 
	11.2 Client Representations and Warranties
	 	 	24	 
	11.3 Disclaimer of Warranties
	 	 	25	 
	 
	 	 	 	 
	ARTICLE XII ADDITIONAL COVENANTS
	 	 	26	 
	12.1 Additional Covenants
	 	 	26	 
	 
	 	 	 	 
	ARTICLE XIII CONFIDENTIALITY; SAFEGUARDING OF DATA
	 	 	26	 
	13.1 Confidentiality
	 	 	26	 
	13.2 Client Data
	 	 	28	 
	13.3 Exclusions
	 	 	29	 
	13.4 Unauthorized Acts
	 	 	29	 
	 
	 	 	 	 
	ARTICLE XIV PROPRIETARY RIGHTS
	 	 	30	 
	14.1 Ownership of Client-Owned Software
	 	 	30	 
	14.2 Ownership of Accenture Software
	 	 	30	 
	14.3 Ownership of Work Product
	 	 	30	 
	14.4 Embedded Accenture Software
	 	 	33	 
	14.5 Proprietary Items
	 	 	34	 
	14.6 Critical Accenture Licensed Software
	 	 	35	 
	14.7 Knowledge Capital
	 	 	35	 

ii

 

	 	 	 	 	 
	ARTICLE XV INDEMNIFICATION
	 	 	35	 
	15.1 Indemnification by Accenture
	 	 	35	 
	15.2 Indemnification by Client
	 	 	36	 
	15.3 Infringement Indemnity
	 	 	37	 
	15.4 Indemnification Procedures
	 	 	39	 
	 
	 	 	 	 
	ARTICLE XVI LIMITATION OF LIABILITY AND RISK ALLOCATION
	 	 	40	 
	16.1 Limitation of Liability
	 	 	40	 
	16.2 Limitation on Category of Liability
	 	 	41	 
	16.3 Contractual Statute of Limitation
	 	 	41	 
	16.4 Recourse
	 	 	41	 
	16.5 Insurance
	 	 	41	 
	16.6 Allocation of Risks; Acknowledgements and Applicability of Limitations
	 	 	42	 
	 
	 	 	 	 
	ARTICLE XVII TERMINATION
	 	 	42	 
	17.1 Termination for Cause by Client
	 	 	42	 
	17.2 Termination for Cause by Accenture
	 	 	43	 
	17.3 Termination for Convenience
	 	 	43	 
	17.4 Termination for Divestiture
	 	 	43	 
	17.5 Termination for Insolvency
	 	 	43	 
	17.6 Termination Amounts
	 	 	44	 
	17.7 Survival of Provisions
	 	 	44	 
	 
	 	 	 	 
	ARTICLE XVIII DISPUTES
	 	 	44	 
	18.1 Informal Dispute Resolution
	 	 	44	 
	18.2 Arbitration
	 	 	45	 
	18.3 Exceptions to Dispute Resolution Procedure
	 	 	47	 
	 
	 	 	 	 
	ARTICLE XIX AUDIT RIGHTS
	 	 	47	 
	19.1 Operational Audits
	 	 	47	 
	19.2 Financial Audits
	 	 	48	 
	19.3 General Principles Regarding Audits
	 	 	48	 
	19.4 Audit Conferences
	 	 	49	 
	 
	 	 	 	 
	ARTICLE XX FORCE MAJEURE
	 	 	49	 
	20.1 Force Majeure Events
	 	 	49	 
	 
	 	 	 	 
	ARTICLE XXI MISCELLANEOUS
	 	 	50	 
	21.1 Client Affiliates
	 	 	51	 
	21.2 Injunctive Relief
	 	 	51	 
	21.3 Assignment
	 	 	51	 
	21.4 Cooperation; Consents
	 	 	52	 
	21.5 Compliance with Laws and Regulations
	 	 	52	 
	21.6 Relationship of Parties
	 	 	52	 
	21.7 Notice
	 	 	52	 
	21.8 Severability
	 	 	53	 
	21.9 No Third-Party Beneficiaries
	 	 	53	 

iii

 

	 	 	 	 	 
	21.10 Publicity
	 	 	54	 
	21.11 Amendment
	 	 	54	 
	21.12 Entire Agreement/Priority
	 	 	54	 
	21.13 Governing Law
	 	 	54	 
	21.14 Rules of Construction
	 	 	54	 
	21.15 Counterparts
	 	 	55	 
	21.16 Alliance Disclosure
	 	 	55	 

iv

 

          THIS MASTER SERVICES AGREEMENT (“Agreement”), dated as of October 16, 2006
(the “Effective Date”), is between Affirmative Insurance Holdings, Inc., a Delaware
corporation (“Client”), and Accenture LLP, an Illinois general partnership registered as a
limited liability partnership (“Accenture”). Accenture and Client may be referred to in
this Agreement individually as a “Party” and together as the “Parties.” The use of the
term “Accenture” herein shall not be construed as a requirement for, or evidence of, the
presence of Accenture LLP in non-US location(s); and all such non-US Services shall be
provided by the Accenture Affiliate(s) authorized to do business in such non-US
location(s).

Background Statement

          This Agreement provides the terms and conditions under which Accenture will provide, and
Client will purchase, certain specified services all as further set forth herein below.

          In consideration of the mutual covenants set forth below, the Parties, intending to be bound,
agree as follows:

ARTICLE I

DEFINITIONS

	1.1	 	Definitions. As used in this Agreement, the terms set forth in Appendix A will have the
respective meanings set forth therein. Other terms used in this Agreement are defined in the
context in which they are used and will have the meanings therein indicated. Additional terms
may be defined in a Services Agreement (as defined below).

ARTICLE II

AGREEMENT TERM; RENEWAL

	2.1	 	Agreement Term. The term of this Agreement will commence on the Effective Date. Unless
earlier terminated in accordance with the terms of this Agreement, the term of this Agreement
will continue until the later of (a) the ten-year anniversary of the Effective Date or (b) the
expiration or termination of all applicable Services Agreements hereunder (as further defined
below and in Appendix A).
	 
	2.2	 	Renewal. The term of this Agreement will be renewed automatically on the terms and
conditions then in effect or such other terms and conditions as the Parties otherwise agree,
for successive one-year periods unless either Party gives written notice to the other Party,
at least six months before the scheduled date of expiration of the initial term or three
months before the expiration of any renewal term, that the term of this Agreement will not be
so extended. The initial term of this Agreement, together with any such renewal terms, is
referred to herein as the “Agreement Term.”

1

 

ARTICLE III

AGREEMENT STRUCTURE

	3.1	 	Services Agreements. Accenture and Client shall execute one or more Services Agreements
which shall set forth in detail a specific scope of Services to be provided by Accenture to
Client. Each such Services Agreement shall be subject to and governed by the terms and
conditions of this Agreement, and is incorporated herein by this reference. Each Services
Agreement shall be separate and distinct from every other Services Agreement hereunder, and
the terms and conditions contained in one Services Agreement shall be applicable only to such
Services Agreement and not to any other Services Agreement. Termination or expiration of a
Services Agreement shall not impact the term of any other Services Agreement.
	 
	 	 	In addition to the specific scope of Services, each Services Agreements shall set forth, as
applicable, the term of such Services Agreement (“Services Agreement Term”), services
commencement date, Services, responsibilities, resources, pricing, service levels and other
applicable terms and conditions.

ARTICLE IV

SERVICES

	4.1	 	Overview. During the Agreement Term and as specifically set forth in a Services Agreement,
Accenture may provide to Client, and Client may obtain from Accenture, one or more of the
following Services, each of which is generally described below: (a) Transition Services, (b)
Base Services and/or (c) Termination Assistance Services (collectively, the “Services”). All
Services shall be provided to Client only for supporting its US customers/clients/policy
holders/providers; such Services shall not be provided in support of (nor be used for) any
Client’s non-US customer/client/policyholder/provider.

	 	(a)	 	Transition Services. Transition Services are those services as may be required
under an applicable Services Agreement to transition the responsibilities for the
service functions being performed by Client to Accenture. Transition Services, if any,
to be provided by Accenture in relation to a particular engagement shall be set forth
in a Services Agreement.
	 
	 	(b)	 	Base Services. If applicable under a Services Agreement, Accenture will
provide to Client, and Client will obtain from Accenture, the base services described
in the applicable Services Agreement (the “Base Services”). The date any such Base
Services commence under a Services Agreement shall be the “Base Services Commencement
Date”. Such Base Services may include business process outsource (“BPO”) Services,
application development and maintenance (“ADM”) Services, infrastructure outsourcing
Services, transformational outsourcing services, consulting Services and/or systems
integration (“SI”) Services, as more specifically defined in the applicable Services
Agreement(s), or other mutually agreed to Services.

2

 

	 	(c)	 	Termination Assistance Services. If applicable under a Services Agreement,
Accenture will provide to Client, and Client will obtain from Accenture, the
Termination Assistance Services as described in such Services Agreement.

	4.2	 	New Services; Primary Supplier.

	 	(a)	 	Client may request Accenture to provide services that are outside the scope of
the then-current Services being provided under a Services Agreement that require
resources for which there is no current resource baseline or charging methodology (“New
Services”). For the avoidance of doubt, increased volumes of Services under a Services
Agreement due to an acquisition shall not be considered New Services. The Parties
shall use the Change Control Process to address any other services provided in
connection with such acquisition that meet the definition of “New Services”. Any
agreement of the Parties with respect to such New Services will be separately specified
in an amendment to the applicable Services Agreement or a new Services Agreement.
	 
	 	(b)	 	To the extent applicable to the scope of any New Services, the Parties shall
use the Accenture rate cards attached as Appendix B to this Agreement, as such rate
cards may be adjusted by Accenture annually pursuant to Section 10.5.
	 
	 	(c)	 	Client will make a reasonable good faith attempt to notify Accenture of all
future opportunities to provide outsourcing services to Client or its Affiliates (a
“Covered Opportunity”); to the extent that Client is reasonably aware that such
opportunities fall within the known capabilities of Accenture. Client will cooperate
in good faith with Accenture with respect to pursuing such Covered Opportunity. Client
will notify Accenture in writing promptly upon awarding any such Covered Opportunity to
another provider and address any impact on the Services through the Change Control
Process set forth in Section 8.9.
	 
	 	(d)	 	In addition, (i) Accenture may be included as part of Client’s overall business
process and information technology planning and (ii) Accenture will be permitted to
propose on new business process and information technology efforts for Client and its
Affiliates.

	4.3	 	Ongoing Cooperation; Planning. Client and Accenture will cooperate in planning and
implementing the Services and changes thereto in an efficient, cost-effective and commercially
reasonable manner.

	4.4	 	Reliance on Instructions. In performing its obligations under this Agreement (including all
Services Agreements), Accenture will be entitled to reasonably rely upon any routine
instructions, authorizations, approvals or other information provided to Accenture by the
Client Services Agreement Executive or, as to areas of competency specifically identified by
the Client Services Agreement Executive, by any other Client personnel identified by the
Client Services Agreement Executive, from time to time, as having authority to provide the
same on behalf of Client in such person’s area of competency.

3

 

	4.5	 	Client Service Responsibilities. In addition to the obligations specified elsewhere in this
Agreement, during the Agreement Term and applicable Services Agreement Term and in connection
with Accenture’s performance of its obligations hereunder (including the applicable Services
Agreement), Client will, at its own cost and expense, have the obligations, and retain the
responsibilities, described in the applicable Services Agreement (the “Client Service
Responsibilities”). Client will perform such Client Service Responsibilities as applicable
under each such Services Agreement and acknowledges that Accenture’s performance is dependent
on Client’s timely and effective performance of such applicable Client Service
Responsibilities, and reasonably related time-sensitive decisions and approvals. Client will
be responsible for its operation and use of the Services and for substantiating that each
scope of Services as set forth in a Services Agreement meets Client’s requirements.

	4.6	 	Disaster Recovery. Except as set forth in a Services Agreement, Accenture has no
responsibility for Client’s business continuity planning or disaster recovery.

	4.7	 	Excused Obligations. Accenture’s failure to perform its obligations under this Agreement
will be excused and will not be included in any calculation of Service Level Credits under
applicable Services Agreements, in each case to the extent such failure is related to or
caused by any of the following:

	 	(a)	 	Any breach of this Agreement by Client or other failure of Client or Client’s
employees, agents, Client’s Contractors (as defined in Section 8.7) or third
parties to perform its obligations under this Agreement (including the applicable
Services Agreement(s));
	 
	 	(b)	 	Infringements of third-party Intellectual Property Rights by Client or Client’s
employees, agents, Client’s Contractors (as defined in Section 8.7) or other
third-party service providers – to the extent that such infringements are not directly
caused by the services provided by or products embedded into the Deliverables by
Accenture;
	 
	 	(c)	 	Violations of law by Client or Client’s employees, agents, Client’s Contractors
(as defined in Section 8.7) or third parties;
	 
	 	(d)	 	Service or resource reductions or other special Service deployment or
performance requirements requested as a result of Client’s change in business strategy,
business operations or priorities which are given priority as requested or approved by
Client and agreed to by the Parties in accordance with the Change Control Process set
forth in Section 8.9 – to the extent that such service or resource reductions
have not been mutually agreed upon by the Parties through the Change Control Process;
	 
	 	(e)	 	Implementation of a disaster recovery plan in response to a disaster in so much
as the performance of such obligations is not within the scope of a Services Agreement,
and to the extent that such disaster recovery is not necessitated by the fault or
negligence of Accenture to undertake reasonable protective measures;

4

 

	 	(f)	 	The applicability of any other provision of this Agreement or a Services
Agreement that provides for relief from Service Level Credits in accordance with such
provision;
	 
	 	(g)	 	Any significant increase in processing volumes or business resulting from the
acquisition or indirectly, of assets or stock of another entity by Client, whether by
merger or otherwise, unless agreed to by the Parties in accordance with the Change
Control Process set forth in Section 8.9;
	 
	 	(h)	 	Any material system or software changes introduced by Client without formal
agreement by Accenture into any of the systems or services used to provide Services by
Accenture hereunder, or failure by Client to maintain Client-Provided Components (as
defined in Section 6.2) at then-current generally supported levels (as
determined by the original manufacturer); or
	 
	 	(i)	 	Any matter constituting Force Majeure, as provided in ARTICLE 20 of the
Agreement.

	4.8	 	Fundamental Assumptions. The Parties acknowledge that the Services, Service Levels,
schedules, Service Charges and related items to be provided under the Services Agreements are
dependent upon the accuracy of the information provided by the Client and fundamental
assumptions set out in each Services Agreement. As a result, during the period of time
beginning on the applicable Services Agreement Effective Date and ending on the one-year
anniversary thereof, Accenture and Client will cooperate with each other, and Client will
provide to Accenture such documents, reports and other information as is reasonably necessary
or desirable for Accenture to verify the information received from the Client and items on
such Services Agreement. If Accenture reasonably determines as a result of such review that
any of such information or fundamental assumption is inaccurate or incomplete, in any material
respect (an “Adjustment Event”), Accenture will inform Client as to its estimates of the
impact of the Adjustment Event on Accenture’s ability to provide the Services in accordance
with the terms of the applicable Services Agreement (whether positive or negative). In such
event, the Parties will seek to establish mutually acceptable alternative arrangements and to
make any appropriate adjustments to their respective obligations under this Agreement and the
applicable Services Agreement (including the charges payable to Accenture) through the
execution of a Change Response pursuant to Section 8.9. Any such adjustment will be
made only to the extent necessary to reflect the impact of the Adjustment Event. If the
Parties are unable to reach agreement on remediation within thirty (30) days after the Client
has been notified of the Adjustment Event, Accenture will have the right to invoke the dispute
escalation procedures specified in ARTICLE XVIII.

ARTICLE V

PERFORMANCE METRICS

	5.1	 	Service Levels.

5

 

	 	(a)	 	General. Each Services Agreement may set forth certain metrics that will be
used to measure Accenture’s performance of the Services under such Services Agreement
(“Service Levels”). If the Services provided pursuant to a Services Agreement are
changed, modified or enhanced, the Parties will review the Service Levels then in
effect and will in good faith determine whether such Service Levels should be adjusted
and whether additional Service Levels should be implemented. During any Burn-In Period
(as defined in the applicable Services Agreement), Accenture shall be excused for any
failure to meet the Service Levels applicable to such Burn-In Period and any related
obligations thereto (including, without limitation, the obligation to pay Service
Level Credits).
	 
	 	(b)	 	Measurement and Monitoring Tools. Accenture will implement its measurement and
monitoring tools and procedures to measure and monitor Accenture’s performance against
the applicable Service Levels as set forth in the Services Agreement. Such measurement
and monitoring may be subject to audit by Client upon reasonable request and subject to
the audit provisions of this Agreement. Upon Client’s request from time to time,
Accenture will provide Client with information and access to such tools and procedures
for purposes of verification.
	 
	 	(c)	 	Quality Assurance. Accenture will provide and implement the quality assurance
procedures that are reasonably necessary for the Services to be provided in accordance
with the Service Levels. Such procedures may include checkpoint reviews, testing,
acceptance and other procedures for Client to monitor the quality of Accenture’s
performance.

ARTICLE VI

RESOURCES

	6.1	 	Accenture-Managed Agreements.

	 	(a)	 	To the extent Base Services are provided under a Services Agreement, commencing
on the Base Services Commencement Date, Accenture will manage, administer and maintain,
on a Pass-Through Expense (as defined in Section 10.3) basis, the lease,
license, maintenance, service and other third-party agreements to be retained by Client
and which are identified in such Services Agreement (collectively, the
“Accenture-Managed Agreements”). Client shall, to the extent available, provide
Accenture with complete and accurate copies of such agreements and all associated
modifications. To the extent complete and accurate copies are not available, Client
shall provide in writing as much information regarding such agreements as Client is
able, and Accenture shall not be
responsible for any failures to comply with the terms and conditions of any such
agreements if such failures arise due to errors or omissions in the written
description provided by Client. This Agreement and the applicable Services
Agreement does not and shall not effect an assignment of the Accenture-Managed
Agreements to Accenture and Client will continue to be liable for any and all

6

 

 obligations under an Accenture-Managed Agreement except as provided in this
Section 6.1.

	 	(b)	 	If Accenture determines that it is able to negotiate arrangements with any
third-party vendor that will enable Accenture to use alternative software, equipment or
services to provide the Services in accordance with Service Levels at a lower cost than
maintaining a separate Accenture-Managed Agreement solely for Client’s use, Accenture
will notify Client of the potential for budget or performance improvements. At its
option, Client may request Accenture to pursue such alternative arrangements for the
applicable Accenture-Managed Agreement. The Parties will cooperate and use
commercially reasonable efforts to reduce Client’s financial responsibility under any
Accenture-Managed Agreements.
	 
	 	(c)	 	Each of the Parties will abide by, and will not breach, the terms of any
Accenture-Managed Agreement and will cooperate with each other to prevent or stay any
such breach. With Client’s approval, Accenture will, to the extent permitted by the
Accenture-Managed Agreements, modify, terminate or cancel any such Accenture-Managed
Agreements. Accenture will provide Client with notice of any renewal, termination or
cancellation dates and fees in respect of the Accenture-Managed Agreements. Client
will be responsible for any Client-approved modification, termination or cancellation
fees or charges imposed in connection with such Accenture-Managed Agreements. To the
extent permitted pursuant to the Accenture-Managed Agreements, Client hereby appoints
Accenture (or its applicable subcontractors) as Client’s sole, limited purpose agent
for the matters pertaining to the Accenture-Managed Agreements addressed in this
Section 6.1.
	 
	 	(d)	 	Each Party will promptly inform the other of any breach of, misuse or fraud in
connection with any Accenture-Managed Agreements and any Client retained assets to
which they pertain and will cooperate with each other to prevent or stay any such
breach, misuse or fraud.
	 
	 	(e)	 	Client will be financially and administratively responsible for obtaining any
Consents required to enable Accenture and its applicable subcontractors to administer
the Accenture-Managed Agreements and access, use, copy, modify and enhance the relevant
assets to the extent necessary for Accenture’s performance under this Agreement.

	6.2	 	Client-Provided Components.

	 	(a)	 	In performance of Services under a Services Agreement, Client may provide and
Accenture may require use of certain Hardware owned by Client (the “Client-Owned
Hardware”) and/or leased by Client (the “Client-Leased Hardware”) (collectively
“Client-Provided Hardware”), and/or of certain Software owned by Client (the
“Client-Owned Software”) and/or licensed by Client (“Client Licensed Software”)
(collectively “Client-Provided Software”) (all

7

 

	 	 	 	collectively referred to as
“Client-Provided Components”). The term “Client-Provided Software” shall include
software, tools, data, databases and methodologies, together with related
documentation. As between the Parties, Client will be the sole and exclusive owner of
the Client-Provided Components. Except as otherwise specifically set forth in a
Services Agreement, for all such Client Provided Components, Client (i) shall retain
all financial, administrative, operational and maintenance responsibility, including
with respect to Client-Provided Software, upgrades necessary to correct defects (ii)
shall obtain all Consents (and pay any resulting fees) required for Accenture (and
applicable Accenture subcontractors) to access, use, perform, copy, modify, and enhance
the Client-Provided Components in such form and on such media as Accenture may
reasonably request, together with appropriate documentation, in each case to the
extent necessary for Accenture’s performance under the applicable Services Agreement.
Accenture and its applicable subcontractors will use such Client-Provided Components,
at no cost to Accenture, (i) solely for purposes of the applicable Services Agreement,
(ii) solely during the Services Agreement Term, and (iii) in compliance with any
applicable use restrictions that are identified in writing to Accenture. In case of
Client-Provided Hardware the Client may change, upgrade or otherwise modify the
Client-Owned Hardware and the Client-Leased Hardware without Accenture’s prior
approval, provided that such changes, upgrades or modifications do not, in the
aggregate, materially increase Accenture’s cost and expenses or affect other aspects of
delivery of the Services. Any such change, upgrade or modification of the Client-Owned
Hardware or the Client-Leased Hardware that, in the aggregate, materially increases
Accenture’s cost and expenses will be subject to the operation of Section 8.9.
	 
	 	(b)	 	For Client-Provided Hardware in Accenture’s custody and care at Accenture
Service Locations, Accenture shall maintain insurance polices against the loss, damage
or destruction (ordinary wear and tear, and loss, damage or destruction caused by
Client excepted) of such Client-Provided Hardware in amounts sufficient to replace such
Client-Provided Hardware; provided, however, that any payments made by Accenture to
Client under such insurance policies in respect of any loss, damage or destruction to
Client-Provided Hardware shall be reduced by the amount of any recovery by Client under
any insurance policy covering the applicable Client-Provided Hardware. Client shall be
named as a loss payee as its interest may appear on the Accenture property insurance
policy for Client-Provided Hardware in Accenture’s custody and care at Accenture
Service Locations.

	6.3	 	Accenture Software. Any software, tools, databases, data or methodologies that are (i) owned
by Accenture or Accenture
Affiliates before the Effective Date or acquired by Accenture after the Effective Date, (ii)
developed by Accenture or Accenture Affiliates other than pursuant to this Agreement or any
other agreement with Client, or (iii) licensed by Accenture or Accenture Affiliates from a
third party, including any such items used by Accenture or Accenture Affiliates to provide
the Services to Client, are collectively referred to herein as the “Accenture Software.” As
between the Parties, Accenture will be the sole and exclusive owner of the Accenture
Software. Accenture (i)

8

 

	 	 	shall retain financial, maintenance, operational and administrative
responsibility, and (ii) obtain any Consents required to provide the Services using the
Accenture Software. With respect to Client’s access and use of any Accenture Software,
Client will comply with any applicable use restrictions that are identified in writing to,
and acknowledged by, Client. Client will establish an access control procedure to limit
Client’s access and use accordingly.
	 
	6.4	 	Additional Resources. Except as otherwise may be set forth in an applicable Services
Agreement and subject to Section 4.8, if Accenture reasonably believes that any
additional resources, whether in the form of equipment, software or otherwise, are required by
Accenture to meet its obligations during the term of the applicable Services Agreement,
whether in addition to or in replacement of any then existing hardware or software, Accenture
will inform Client as promptly as practicable. Client and Accenture will discuss in good
faith such requirements and, if the Parties agree, will prepare a Change Analysis pursuant to
Section 8.9. If the Parties are unable to agree on any changes pursuant to
Section 8.9, either Party may commence proceedings under ARTICLE XVIII.
	 
	6.5	 	Consents; Maintenance. The following provisions apply when this Agreement (including any
Services Agreement) imposes upon a Party the responsibility to obtain any Consent:

	 	(a)	 	The Party administratively responsible for obtaining the Consent will use
commercially reasonable efforts to obtain such Consent. The other Party will provide
reasonable assistance to the responsible Party in obtaining such Consent. The Parties
will cooperate to obtain such Consents in a cost effective and efficient manner.
	 
	 	(b)	 	When this Agreement (including any Services Agreement) provides that a Party
will be financially responsible for obtaining any Consents, such responsibility will
include (subject to paragraph (c) below) the payment of any required transfer, upgrade,
access, license or similar fees or charges related thereto. If one Party is
administratively responsible and the other Party is financially responsible, the
financially responsible Party will promptly (but in no event later than 30 days after
notification) reimburse the other Party for any of the foregoing fees or charges.
	 
	 	(c)	 	If any Consent cannot be obtained on a commercially reasonable basis, the
Parties will (i) make any appropriate adjustments to their respective obligations under
this Agreement, including, where necessary, relieving Accenture of any Service or
Service Level obligations or adjusting the charges set forth in the
applicable Services Agreement, all to the extent necessary due to a failure to
obtain such Consents, and (ii) seek to establish mutually acceptable alternative
arrangements so that the Parties may perform their respective obligations under the
applicable Services Agreement by alternative means.

9

 

	 	 	 	Accenture will identify for Client any applicable Accenture subcontractors that
should be included within the scope of a Consent to be obtained by Client.
	 
	 	(d)	 	Each Party will establish and maintain appropriate third-party maintenance
arrangements (or otherwise provide maintenance and support) for the maintenance of
hardware and software for which it has maintenance responsibility under this Agreement.
If a third-party maintenance vendor is unable or unwilling to bring the applicable
hardware or software into substantial conformance with its specifications, the Parties
will cooperate to modify any impacted business process and this Agreement or the
applicable Services Agreement (including affected Service Levels) to the extent
necessary to minimize the impact of the problem caused by such nonconformance.
	 
	 	(e)	 	With respect to hardware and third-party software for which a Party has
financial responsibility under this Agreement:

	 	(i)	 	The Party will be responsible for the costs of and decisions to
upgrade and refresh such hardware and third-party software. In consultation
with the other, each Party may defer upgrading or refreshing any such hardware
or software to the extent it has reasonable concerns regarding the stability of
such hardware or software or whether the use of such equipment hardware or
software will impair the ability of Accenture to meet the Service Levels.
Accenture will not be responsible for any upgrade, modification or enhancement
of any out-of-scope equipment or software required by any refresh of in-scope
hardware or software performed by Accenture.
	 
	 	(ii)	 	The objective of the Parties over time is to maintain in-scope
software at releases that are no older than “N-1.” However, the Parties
recognize that Client’s historical practices have not always maintained such
software at “N-1” release levels in the past. The Parties will cooperate to
assess the impact, including the economic impact, of maintaining such “N-1”
upgrades on each in-scope software product. Among the factors that the Parties
will take into account will be licensing concerns, the impact of regression
testing and actual Service requirements.
	 
	 	(iii)	 	If Client elects to maintain software under this Agreement at
release levels that are not then generally supported by the applicable
third-party vendor, then Accenture will not be responsible for any failure to
meet a Service Level if and to the extent that such failure arises because such
software is not supported by the third-party vendor. Subject to the
operation of Section 8.9, Accenture will use commercially reasonable
efforts to maintain such software at multiple release levels.
	 
	 	(iv)	 	The Parties acknowledge that certain third-party software used
in connection with or provided as a part of the Services is not subject to
maintenance agreements or upgrades to new versions, but is maintained

10

 

	 	 	 	through
use of source code previously purchased or licensed from third parties. In
such cases, Sections 6.5(e)(ii) through (iv) will not apply even if newer
versions of the software are available and/or the version is no longer
supported.

	 	(f)	 	With respect to any hardware and third-party software that Client has financial
and administrative responsibility under this Agreement, and that Client has requested
Accenture to manage, integrate or update, but for which Client has not given Accenture
permission to replace; Client will retain responsibility for maintenance of such
hardware or software, as performed by third parties, on a Pass-Through Expenses basis
and will bear the cost of replacing such equipment or software.

	6.6	 	Non-Transferred Client Property. No interest or obligation is conferred upon Accenture under
this Agreement regarding Client’s property beyond the limited right to use such property for
purposes of the applicable Services Agreement. All such property remains in the care, custody
and control of Client, except to the extent provided in a Services Agreement.
	 
	6.7	 	Further Assurances. Accenture and Client agree to execute and deliver such other instruments
and documents as either Party reasonably requests to evidence or effect the transactions
contemplated by this ARTICLE VI.

ARTICLE VII

SERVICE LOCATIONS

	7.1	 	Service Locations. The Services will initially be provided at the Client Service Locations
and the Accenture Service Locations identified in the applicable Services Agreement.
Notwithstanding anything set forth in the applicable Services Agreement, upon reasonable
notice to Client, Accenture may change Accenture Service Locations without Client approval
provided such change does not detrimentally impact the obligations of Accenture or Service
Charges under this Agreement; provided, however, that no physical asset belonging to Client
shall be moved without Client’s prior written approval.
	 
	7.2	 	Access to Client Service Locations and Items. During each Services Agreement Term, at no
cost to Accenture and to the extent necessary for Accenture to provide the Services under such
applicable Services Agreement, Client will provide Accenture with (a) access to the Client
Service Locations identified in such Services Agreement twenty-four (24) hours a
day, seven (7) days a week or as set forth in such Services Agreement, (b) suitable office
space in Client’s principal facility and at other mutually designated Client facilities, and
(c) the following services and other items at each such Client facility, all on a mutually
agreed basis: (i) desks, storage, furniture and other normal office equipment support; (ii)
adequate computer resources; (iii) photocopying facilities; (iv) telephone and facsimile
equipment and services (including voice mail services); (v) stationery (excluding Accenture
specific items); (vi) postal and courier services; (vii) archiving facilities; (viii)
secretarial support and word processing; (ix) general office

11

 

	 	 	supplies; (x) security and
janitorial support; (xi) parking; and (xii) such other items, services and resources as the
Parties may agree are reasonably necessary for Accenture to perform its obligations under
this Agreement (collectively, “Client Service Location Items”). Accenture may terminate its
receipt of any Client Service Location Items by giving Client at least 30 days’ prior
written notice.
	 
	7.3	 	Use of Client Service Locations. Unless otherwise approved by Client, Accenture may use the
Client Service Locations and the Client Service Location Items only in connection with the
provision of Services to Client and not for the provision of services to other clients or
customers of Accenture.
	 
	7.4	 	Client Service Location Policies. When working at any Client Service Locations or other
Client facilities, Accenture personnel will comply with Client’s standard workplace security,
administrative, safety and other policies and procedures applicable to Client’s own employees.
Client will provide Accenture with a copy of each such policy and procedure and will notify
Accenture of any subsequent modifications or amendments thereto. If any such policies or
procedures impose increased material costs or obligations on Accenture, Accenture will notify
Client within two business days of receiving written notice of such policy or procedure, and
Client and Accenture will initiate the Change Control Process pursuant to Section 8.9
in respect of the additional material costs or obligations; provided, however, that the
Parties shall complete the Change Control Process (or escalate any disputes) for any Contract
Changes proposed pursuant to this Section 7.4 within ten business days from Change
Control Process initiation. If the Parties are unable to agree on any changes pursuant to
Section 8.9, either Party may commence proceedings under ARTICLE XVIII. During the
pendency of the Change Control Process in Section 8.9, and, if applicable, the dispute
resolution process in ARTICLE XVIII, Accenture will comply with such new or modified policies
or procedures, but Accenture shall be excused for any failure to meet the Service Levels and
related obligation (including without limitation, the obligation to pay Service Level Credits)
to the extent such failure is directly caused by Accenture’s efforts to comply with such
policies.
	 
	7.5	 	Relocation Resulting from Changes in Laws and Regulations. The Parties acknowledge and
agree that the Services may be provided offshore (i.e., outside the United States) to leverage
the use of lower cost offshore resources and the applicable Service Charges as set forth in a
Services Agreement may be based on the use of such lower cost resources. In the event any
laws or regulations are promulgated, changed,
amended or otherwise come into effect at any time
during the Term (including any applicable Services
Agreement Term) that impose taxes, tariffs,
restrictions or limitations on, or prohibit, the
offshore portion of the Services, in whole or part,
then, Client will either (a) pay for the added
expenses of performing the work offshore, or (b) work
with Accenture to find a mutually agreeable
alternative solution. If the parties are unable to
agree to an alternative solution, then either Party
may terminate the applicable Services Agreement(s),
subject to payment of Termination Charges by Client as
set forth in all applicable Services Agreement(s).
	 
	7.6	 	Control of Service Locations.

12

 

	 	(a)	 	No interest or obligation of the Client Service Locations or Client Service
Location Items is conferred upon Accenture beyond the limited right to use such Client
Service Locations and Client Service Location Items for purposes of this Agreement.
All such facilities and items will remain in the care, custody and control of Client.
	 
	 	(b)	 	No interest or obligation of the Accenture Service Locations is conferred upon
Client; provided, however, that to the extent that any Accenture Service Location is
used to house any physical assets owned by Client, (i) Accenture shall conspicuously
label such assets as belonging to Client; (ii) Accenture shall not authorize or agree
to any liens or pledges of such assets and shall act promptly to remove any liens not
authorized by Client; and (iii) Client shall be entitled to seek a Contract Change
pursuant to Section 8.9 to move or otherwise increase protection of such assets
and Client’s ownership interest therein. All such facilities will remain in the care,
custody and control of Accenture. Accenture may use such facilities to provide
services to other clients.

ARTICLE VIII

RELATIONSHIP GOVERNANCE

	8.1	 	Accenture Services Agreement Executive. During each Services Agreement Term, Accenture will
designate an individual who will be primarily dedicated to Client’s account who (i) will be
the primary contact for Client in dealing with Accenture under such Services Agreement, (ii)
will have overall responsibility for managing and coordinating the delivery of the Services
under such Services Agreement, (iii) will meet regularly with the Client Services Agreement
Executive and (iv) will have the authority to make decisions with respect to actions to be
taken by Accenture in the ordinary course of day-to-day management of Accenture’s account in
accordance with the applicable Services Agreement (the “Accenture Services Agreement
Executive”). Accenture may assign the same individual to be such Accenture Services Agreement
Executive under one or more Services Agreements, including on a concurrent basis.
	 
	8.2	 	Client Services Agreement Executive. During each Services Agreement Term, Client will
designate a senior level individual who (i) will be the primary contact for Accenture in dealing with
Client under such Services Agreement, (ii) will have overall responsibility for managing and
coordinating the receipt of the Services under the applicable Services Agreement, (iii) will
meet regularly with the Accenture Services Agreement Executive for such Services Agreement
and (iv) will have the authority to make decisions with respect to actions to be taken by
Client in the ordinary course of day-to-day management of this Agreement (the “Client
Services Agreement Executive”). Client may assign the same individual to be such Client
Services Agreement Executive under one or more Services Agreements, including on a
concurrent basis.
	 
	8.3	 	Establishment of Services Agreement Management Steering Committee. For each Services
Agreement, Accenture and Client will appoint a Services Agreement Management Steering
Committee (the “Steering Committee”), made up of a number of key resources from each Party
(inclusive of the Accenture Services Agreement Executive 

13

 

	 	 	and the Client Services Agreement
Executive), which will meet, from time to time, and at such time as its members or the Parties
deem appropriate to (i) review and analyze the monthly performance reports for the preceding
period and the Parties’ overall performance under this Agreement, (ii) review progress on the
resolution of issues, (iii) provide a strategic outlook for Client’s requirements, and (iv)
attempt to resolve, or designate individuals to attempt to resolve, any disputes or
disagreements under this Agreement. Although the Parties’ respective Services Agreement
Executives will remain as members of the applicable Steering Committee, either Party may
change its other representatives from time to time upon written notice to the other. In
addition, the Parties may mutually agree to increase or decrease the size, purpose or
composition of the applicable Steering Committee in an effort for Accenture to better provide,
and for Client to better utilize, the Services. The members of the Steering Committee will
not have separate voting rights; all actions of the Steering Committee required under this
Agreement will require the mutual consent of the Parties.

	8.4	 	Key Management Positions.

	 	(a)	 	In an effort to develop an environment in which the Services may be provided in
an effective manner, the Parties may jointly designate from time to time certain key
Accenture account management positions, including the Accenture Services Agreement
Executive and the Client Partner (who has overall Client relationship responsibility)
(“Key Management Positions”). With respect to the appointment of the initial and any
replacement Accenture personnel to Key Management Positions, the Parties will cooperate
with each other to fill the Key Management Positions with individuals who are
reasonably acceptable to Client. Before assigning an individual to a Key Management
Position, whether as an initial assignment or a replacement, Accenture will (i) notify
Client of the proposed assignment, (ii) introduce the individual to appropriate Client
representatives, and (iii) subject to applicable law and Accenture’s standard personnel
practices, provide Client with a résumé, and any other information about the individual
reasonably requested by Client. If Client has a good faith objection to any such
assignment within ten (10) days of the date such assignment begins, Accenture will not assign the proposed individual, and will propose to
Client the assignment of another individual of suitable ability and qualifications,
within a mutually agreed upon timeframe.
	 
	 	(b)	 	Except in the event of resignation, death, disability or termination, Accenture
will notify Client in writing at least 30 days prior to replacing any Accenture
personnel serving in a Key Management Position. In the event of any replacement of
Accenture personnel serving in Key Management Positions, Accenture will provide for an
appropriate transition (overlap) period for the new individual and use commercially
reasonable efforts to minimize any disruption such replacement may cause in the
performance of Accenture’s obligations under this Agreement.
	 
	 	(c)	 	If Client determines, in good faith and consistent with applicable law, that
the continued assignment of any Accenture personnel serving in a Key

14

 

	 	 	 	Management Position is not in the best interests of Client, Client will notify Accenture
requesting the replacement of the individual and providing a confidential summary of
the reasons why the replacement is needed. Promptly after receiving such request, the
Parties will consult the matters stated in the request and either institute mutually
agreeable corrective action or replace the individual within a mutually agreed upon
timeframe. The replacement individual will have suitable ability and qualifications
reasonably acceptable to Client. This paragraph (c) will not be construed to give
Client the ability to terminate the employment of any Accenture personnel (or
subcontractor personnel).

	8.5	 	Reports. The Parties will establish an appropriate set of periodic reports regarding the
provision of the Services under each Services Agreement by Accenture to be delivered by
Accenture to Client from time to time under such Services Agreement.
	 
	8.6	 	Meetings and Conference Calls. The Parties will determine an appropriate set of periodic
meetings or telephone conference calls to be held between representatives of Client and
Accenture and set forth such call requirements in the applicable Services Agreement. At
either Party’s request, the other Party will publish its proposed agenda for any meeting
sufficiently in advance of the meeting to allow meeting participants a reasonable opportunity
to prepare. All meetings will be held in such location as mutually agreed by the Parties.
	 
	8.7	 	Relationships with Client Contractors. Accenture will cooperate with Client and any other
third-party contractor employed by Client (“Client Contractor(s)”) which Accenture must
interface with in the performance of Services hereunder. Notwithstanding anything in this
Agreement, Accenture is not required to disclose its Confidential Information to competitors
of Accenture. Accenture will promptly notify Client if Accenture determines that an act or
omission of a Client Contractor will delay or otherwise impair the provision of Services.
Client shall be responsible for the conduct and cooperation of its Client Contractors. Client
will be responsible for managing and supervising Client Contractors
and for any failure of Client Contractors to comply with Client’s applicable obligations
under this Agreement or an applicable Services Agreement.

If the work performed by any Client Contractor affects the Services being performed by
Accenture under this Agreement or such Client Contractor otherwise uses resources furnished
by Accenture, Client will use commercially reasonable efforts to ensure that such Client
Contractor: (i) cooperates with Accenture; (ii) follows reasonable Accenture standards,
methodologies and procedures (including confidentiality and security procedures); (iii)
complies with the license and confidentiality requirements of vendors of the software on
which such Client Contractor is performing work; and (iv) executes, delivers and complies
with any customary confidentiality and nondisclosure agreements reasonably required by
Accenture or such vendors. If a Client Contractor notifies Client that it does not in good
faith believe that Accenture standards, methodologies or procedures are reasonable in the
industry or appropriate in the particular situation, then Client will so notify Accenture
and the Parties will seek to establish mutually acceptable alternative arrangements.

15

 

	8.8	 	Accenture Subcontractors. Accenture will not subcontract all or any part of the Services
without providing notice to Client, except where such subcontractor is (i) an Accenture’s
Affiliate, (ii) a subcontractor that provides services customarily purchased from third-party
vendors such as facilities maintenance, hardware and software maintenance, security, storage,
and other ancillary services, (iii) any subcontractor not dedicated to Client or any
subcontractor who is providing services in a shared environment, or (iv) any subcontractor
that provided services to Client during the 12-month period preceding the applicable Services
Agreement Effective Date. Accenture shall also prohibit subcontractors from further assigning
or subcontracting any part of their performance obligations relative to Client-related
services or deliverables without express written consent of Client.

Accenture will remain responsible for obligations under an applicable Services Agreement
performed by any Accenture subcontractors to the same extent as if such obligations were
performed by Accenture’s employees. Accenture will remain Client’s sole point of contact
regarding the Services. Any reference in this Agreement to Client granting a right to, or
conferring a benefit upon Accenture will be deemed to include Accenture’s subcontractors
unless the context indicates otherwise.

     If Client expresses any concerns to Accenture regarding bona fide performance issues
with any Accenture subcontractors, Accenture will cooperate with Client to resolve such
concerns on a mutually acceptable basis.

	8.9	 	Contract Change Control. The Parties will comply with the following procedures to revise,
amend, alter or otherwise change the Services being provided under this Agreement. These
procedures do not apply to changes that result in New Services under a new Services Agreement.

	 	(a)	 	To request a Contract Change, Accenture or Client, as applicable, will deliver
a written request (the “Change Request”) to the responsible Accenture Services
Agreement Executive or the Client Services Agreement Executive as designated by the
applicable Services Agreement, as the case may be, specifying in reasonable detail to
the extent known: (i) the proposed Contract Change, (ii) the objective or purpose of
such Contract Change, (iii) the particular Agreement and/or Services Agreement
provisions that are affected by the Contract Change and (iv) the requested
prioritization and schedule for such Contract Change.
	 
	 	(b)	 	The Parties will cooperate with each other in good faith in discussing the
scope and nature of the Change Request. As soon as practicable and to the extent
applicable, Accenture will prepare and deliver to the Client Services Agreement
Executive a written statement (the “Change Response”) describing any changes in
methodology, procedures, prioritization, products, services, assignment of personnel
and other resources that Accenture believes would be required to affect the Change. In
addition, such Change Response will include, as appropriate or applicable, (i) an
estimation of the net increase or decrease in the pricing that would be required, (ii)
the categories of costs to be avoided as a result of such Contract Change (iii) a
description of how the proposed Contract Change would

16

 

	 	 	 	be implemented, (iv) a
description of the effect, if any, such Contract Change would have on the underlying
Services Agreement, including, without limitation, on applicable Service Levels, (v) an
estimation of all resources required to implement such Contract Change, including a
description of the delivery risks and associated risk mitigation plans, and (vi) such
other information as may be relevant to the proposed Contract Change. If applicable,
any Change Response shall also address increased or decreased incremental or recurring
costs being incurred or defrayed by Accenture during pendency of the Change Control
Process in respect of the proposed Contract Change. The Accenture Services Agreement
Executive and the Client Services Agreement Executive will meet to determine whether
they desire for Accenture to proceed with the implementation of the proposed Contract
Change in accordance with the Change Response.
	 
	 	(c)	 	If at any time during the negotiation of any Change Response, either Party
reasonably believes that the Change Response will not be resolved in a reasonable
period of time, such Party may declare a Dispute and initiate the informal Dispute
escalation process pursuant to ARTICLE XVIII.
	 
	 	(d)	 	Upon agreement in writing of the Parties, the Change Response will amend the
applicable Services Agreement in accordance with this Section 8.9.

ARTICLE IX

HUMAN RESOURCE MATTERS

	9.1	 	General Principles Regarding Accenture Personnel. Except as provided in Section 8.4,
Accenture reserves the right to determine which personnel will be assigned to
perform Services, and to replace or reassign such personnel during the Term of this
Agreement. The personnel assigned to the Client account by Accenture (or its
subcontractors) will be and remain employees of Accenture (or such subcontractors), and
Accenture (or such subcontractors) will provide for and pay the compensation and other
benefits of such personnel, including salary, health, accident and workers’ compensation
benefits and all taxes and contributions that an employer is required to pay with respect to
the employment of employees.
	 
	 	 	With the exception of project-critical and relationship management staff, for which staffing
levels and intervals will be mutually agreed to by the parties separately in the applicable
Arrangement Letter, Accenture will otherwise maintain support staffing levels and continuity
of Accenture personnel consistent with its obligations to perform Services and in the event
of a delay or other problem, Accenture will staff and train additional Accenture personnel
as needed.

	9.2	 	Employee Problem-Solving.

	 	(a)	 	In the event that Client reasonably believes that an Accenture employee
assigned to a Client Service Location is violating any Client policy generally
applicable to Client employees or otherwise engaging in illegal activity or placing
Client’s property or employees at risk of physical harm, Client shall be entitled to

17

 

	 	 	 	take reasonable steps to prevent or limit such liability, illegal activity or risk
(including, where appropriate, removing or barring the employee from the Client Service
Location). Client shall communicate its actions or intention to take action as
promptly as possible to Accenture taking into account the circumstances and severity of
the events leading to such action. To the extent that any Client action taken without
the prior consent of Accenture is subsequently determined to be wrongful, Accenture
shall be excused for any failure to meet the Service Levels and any related obligation
(including without limitation, the obligation to pay Service Level Credits) to the
extent such failure is directly caused by such Client action.
	 
	 	(b)	 	In the event that Client has other concerns regarding the conduct or
performance of any Accenture employee, Client shall have the right to request a meeting
with Accenture and the Parties shall work in good faith to resolve such concerns. In
the event that Client believes that its concerns have not been addressed and the
situation could adversely impact any Service Level or Deliverable, Client will have the
right to invoke the provisions of ARTICLE XVIII.

	9.3	 	Limitations on Recruiting. Except as provided in the applicable Services Agreement and
unless otherwise agreed by the Parties in writing, during such Services Agreement Term and
twelve months thereafter, neither Party will, directly or indirectly, knowingly solicit for
employment, offer employment to or employ or retain (whether as an employee, officer, agent,
consultant, advisor or in any other capacity) any employee of the other Party who is or was
actively involved in the performance or evaluation of the Services under a Services
Agreement. If a Party breaches this Section 9.3, the breaching Party shall pay
compensation to the non-breaching Party in the form of liquidated damages equal to the
greater of one (1) year’s compensation either (a) offered to the Personnel by the breaching
Party or (b) paid or offered to the Personnel by the non-breaching Party. Notwithstanding
the foregoing, the Parties acknowledge and agree that this Agreement will not prohibit (i)
solicitations through general public advertising or other publications of general public
circulation or (ii) the hiring of any employee of a Party who contacts the other Party
without such other Party having solicited such employee. Notwithstanding the foregoing,
upon Accenture’s termination of any Accenture employee then-dedicated to providing the Base
Services to Client, Client may offer employment to and hire such Accenture employee. In
addition, upon termination of any Services Agreement, Client may offer employment to and
hire (x) any Accenture employee then-dedicated to providing the applicable Base Services to
Client under such Services Agreement and hired by Accenture from employment with Client in
connection with the execution of the applicable Services Agreement, and (y) up to 50% of the
remainder of such Accenture employees then-dedicated to providing the applicable Base
Services to Client under such Services Agreement. With respect to any Contract Change
involving any significant reduction in the scope of the Services provided to Client, Client
may inform Accenture of its desire to hire Accenture employees dedicated to Client that
would be materially affected by such reduction, and the Parties shall negotiate in good
faith with respect to such request during the Change Control Process.

18

 

ARTICLE X

PRICE & PAYMENT

	10.1	 	Service Charges. In consideration for the performance of the Services, Client will pay to
Accenture the charges specified in the applicable Services Agreement(s) (“Service Charges”)
plus Taxes and other amounts described in this ARTICLE X.
	 
	10.2	 	Reimbursement of Expenses. Except as otherwise may be set forth in a Services Agreement,
Client will pay, or reimburse Accenture for, the reasonable out-of-pocket expenses, including
travel and travel-related expenses incurred by Accenture with the prior written consent of
Client, in connection with Accenture’s performance of its obligations under this Agreement
(including each Services Agreement) which are directed and/or approved by Client; provided,
however, that Client shall not be responsible for reimbursement of travel expenses in excess
of those allowed under Client’s travel expense policy as notified to Accenture in writing in
advance of the incurrence of the applicable expense.
	 
	10.3	 	Pass-Through Expenses. The applicable Services Agreement may set forth certain expenses
relating to the Services that will be incurred by Accenture and will be passed through to
Client (“Pass-Through Expenses”). Except as otherwise provided in this Agreement, Client will
not be responsible for any additional Pass-Through Expenses without its prior consent.
	 
	 	 	Promptly after Accenture’s receipt of the third-party invoice for such expenses, Accenture
will use commercially reasonable efforts to correct any errors therein and provide the
invoice to Client together with a statement that Accenture has reviewed the invoiced charges
and determined that such charges appear to be valid and should be paid by Client/invalid and
should be questioned by Client. Accenture will submit such invoice to Client for payment
within a reasonable period of time prior to the due date or, if a discount for early payment
is applicable, the date on which Client may pay such invoice with a discount.

     Promptly after Client’s payment of Pass-Through Expenses, Client will confirm such
payment to Accenture in writing. If Client fails to pay the Pass-Through Expenses in a
timely manner, Accenture may advance such expenses on behalf of Client, and Client promptly
will reimburse Accenture for such payments.

	10.4	 	[Reserved].
	 
	10.5	 	Cost of Living Adjustments (COLA). For Service Charges due under each Services Agreement,
on September 1, 2007 and each anniversary date of September 1 of such Services Agreement (or
other date as may be set forth in the applicable Services Agreement), the Adjustable Amounts
(as defined below) are subject to adjustment as set forth in this Section 10.5. If
(i) the India Professional/Supervisor/Technical Overall Salary Increase Survey index as
published by Hewitt Associates (“Index A”), (ii) the Philippines
Professional/Supervisor/Technical Salary Increases Budgets by Industry (All Services
Companies including 0%) Survey index as published by Hewitt Associates

19

 

	 	 	(“Index B”), (iii)
and/or the Employment Cost Index for Compensation/Civilian Workers/White Collar/Professional
Specialty and Technical Occupations (Not Seasonably Adjusted) as published by the Bureau of
Labor Statistics of the US Department of Labor (“Index C”) reflect percentage increases or
decreases for the most recently concluded calendar year for the resources in India, the
Philippines or the US, respectively, the Services Charges will be adjusted by the percentage
of such country’s increase or decrease for such year. Such COLA rate adjustments shall be
performed on September 1 of each calendar year during any Services Agreement Term(s) or as
soon thereafter as reasonably possible after such indices are made available.
	 
	 	 	Within a reasonable time following such adjustment, Accenture will provide to Client a
recalculation of the Adjustable Amounts. If Hewitt Associates either stops publishing Index
A or Index B or substantially changes the content of the index, or if the Bureau of Labor
Statistics either stops publishing Index C or substantially changes the content of the
index, the Parties shall substitute another comparable measure for the applicable country
published by a mutually agreeable source. For purposes of this Section 10.5,
“Adjustable Amounts” means the various service rates and charges set forth in the applicable
Services Agreement; such rates and charges are subject to a cost-of-living adjustment under
this Section 10.5.

	10.6	 	Currency. Unless otherwise set forth in an applicable Services Agreement, Accenture will
bill Client in the United States in US Dollars. Invoices may include charges for work
performed by personnel from India, Philippines or other mutually agreed to non-US locations
and related expenses charged by such personnel (collectively, the “Foreign Currency Charges”).
For invoicing purposes, Foreign Currency Charges will be charged in, and converted from, the
Indian Rupee, Philippines Peso or other applicable local country currency to US Dollars at the
Agreed Exchange Rate for the invoice period in which the Foreign Currency Charges were
charged. The “Agreed Exchange Rate” shall be an average of the closing midpoint spot rates
quoted for US Dollars equivalent of Indian Rupee (or other applicable local country currency)
on the first business day of the succeeding invoice period and the last 4 business days of the
month in which the Foreign Currency Charges were charged. The source of the closing midpoint
spot rates will be Bloomberg. Currency adjustments will be included in the next succeeding
invoice to Client.
	 
	10.7	 	Invoices; Method of Payment; Finance Charges.

	 	(a)	 	For each Services Agreement under which charges are due from Client to
Accenture, Accenture will render a single consolidated invoice in accordance with the
invoicing period and schedule provided in such Services Agreement. Each invoice will
include such detail as required pursuant to the applicable Services Agreement and will
allocate charges among Service components, locations and departments. Upon Client’s
reasonable request from time to time, Accenture shall provide such additional or
different detail required to satisfy Client’s internal accounting and chargeback
requirements.

20

 

	 	(b)	 	Each invoice will indicate (i) the percentage of the base charges invoiced for
such invoice period applicable to each non-United States location providing Services in
such invoice period; and (ii) the amounts of any other invoiced amounts directly
originating from a non-United States location providing Services in such invoice
period. At the beginning of each Contract Quarter, Accenture will provide Client with
a non-binding forecast of the amount of Services (as reflected in US dollars) that
Accenture estimates will originate from non-United States locations over the succeeding
12-month period.
	 
	 	(c)	 	Any amount due to Accenture under this Agreement for which a time for payment
is not otherwise specified herein will be due and payable thirty (30) days after
Client’s receipt of Accenture’s invoice.
	 
	 	(d)	 	All amounts to be paid to Accenture under this Agreement will be paid in US
dollars by federal wire transfer to the account or accounts designated by Accenture
from time to time or by such other method as is mutually determined by the Parties. As
of the Effective Date, the following account should be used for purposes of payment by
Client to Accenture (upon written notice, Accenture may change such account
information):

To: Accenture LLP

Bank: JP Morgan Chase Bank N.A

Routing Number: 071000013

Account Number: 5311314

Account Type: Checking (not Savings)

Invoice Qualifier: Invoice (plus ten digit invoice number)

	 	(e)	 	Any amount not paid when due will bear interest from the original due date
until paid at a rate equal to the lesser of (i) 1.5% per month or (ii) the maximum rate
of interest allowed by law.

	10.8	 	Proration. Periodic charges under this Agreement are to be computed on a calendar month
basis and will be prorated on a per diem basis for any partial month. Any unused credits
against future payments owed to either Party by the other pursuant to this Agreement will be
paid to the applicable Party within thirty (30) days after the expiration or termination of
this Agreement (including all Services Agreements).
	 
	10.9	 	Disputed Charges. Client may withhold payment of particular charges that Client reasonably
and in good faith disputes under any Services Agreement at any given time during term of such
Services Agreement. Any amounts (or portions thereof) not so disputed will be paid by the
applicable payment due date, as determined pursuant to Section 10.7. Client will
notify Accenture in writing on or before the payment due date of any disputed charges for
which Client is withholding payment and describe, in reasonable detail, the reason for such
withholding. The Parties agree that in connection with any Dispute for which Client withholds
the payment of charges pursuant to this Section 10.9, the Parties shall initiate the
expedited informal Dispute resolution process set forth in Section 18.1(a) in
accordance with the time frames provided in Section

21

 

	 	 	18.1(c). If such Dispute is not resolved
pursuant to Section 18.1, the Parties shall refer such Dispute to arbitration as
provided in Section 18.2, and each Party shall use commercially reasonable efforts to
accelerate the timelines set forth in Section 18.2 such that a final opinion of the
arbitrators is delivered within 30 days of the initial referral of such Dispute. In addition,
if the Parties are unable to resolve such dispute within 30 days after Client’s receipt of the
invoice, Client will promptly deposit into an escrow account the total amount so withheld and
furnish evidence of any escrow deposit to Accenture. The Parties will mutually establish such
escrow account at a major national bank mutually acceptable to the Parties, and the costs
thereof will be borne by the Parties in inverse proportion to the distribution to which each
Party is entitled from such account. The escrow account will be established pursuant to an
escrow agreement that provides that the funds therein, including accrued interest, will be
disbursed to Accenture or Client, as applicable, in accordance with the result of the dispute
resolution process referred to in ARTICLE XVIII or by mutual agreement of the Parties. For as
long as Client makes such escrow deposits during the pendency of the dispute and pays
undisputed amounts, Accenture will continue providing the Services to Client subject to the
termination rights set forth in Section 17.2. If Client fails to escrow payments as
required by this Agreement, Accenture may apply to any court of competent jurisdiction
to seek injunctive relief for such failure and will have the right to terminate the applicable Services Agreement pursuant to Section 17.2.

	10.10	 	Taxes.

	 	(a)	 	Each Party will be responsible for (i) any personal property taxes on property
it owns or leases, (ii) employment taxes of its own employees, and (iii) taxes based on
its net income or gross receipts.
	 
	 	(b)	 	Client will be responsible for sales, use, excise, value-added, services,
consumption and other taxes and duties, and any interest thereon, that are assessed
against either Party, on the provision of the Services (including the reimbursement of
expenses), any particular goods or services received by Client from Accenture, or the
fees paid for such goods or services.
	 
	 	(c)	 	To the extent any payment for service, product or technology provided by
Accenture to Client is subject to withholding tax by any government, Client will
reimburse Accenture for any such withholding tax.
	 
	 	(d)	 	If Accenture Personnel are required by Client to perform Services outside the
city, state, province or country in which such Accenture Personnel are based, Client
will reimburse Accenture for increased taxes (and assignment related costs) incurred by
Accenture or such Accenture Personnel as a result of providing such services. Such
costs include, but are not limited to (i) additional income taxes, including any tax or
tax effect (gross up) to Accenture or Accenture Personnel, (ii) social taxes, (iii)
employment taxes, (iv) housing, cost of living adjustments and all other assignment
related costs, and (v) professional fees incurred for additional home country income
tax compliance and foreign tax return preparation.

22

 

	 	(e)	 	The Parties will cooperate to segregate the Service Charges into the following
separate payment streams: (i) those for taxable Services, (ii) those for nontaxable
Services, (iii) those for Pass-Through Expenses where Accenture functions merely as a
paying agent for Client in receiving goods, supplies or services (including leasing and
licensing arrangements) and (iv) reimbursable expenses. Accenture will not collect or
include in its invoices any sales or use taxes for which Client has furnished a
properly executed and valid exemption certificate or direct pay permit.
	 
	 	(f)	 	If Accenture is assessed a deficiency (including penalties and interest
thereon) for taxes payable by Client pursuant to this Agreement, Accenture will use
reasonable efforts to promptly notify Client of such assessment and will
administratively contest such assessment to the extent it is timely requested or
authorized to do so by Client, and Client and Accenture shall jointly control such
contest. Client shall indemnify and hold harmless Accenture from any such tax
deficiency (including penalties and interest). Client shall reimburse Accenture for all
accounting and attorneys’ fees and expenses reasonably incurred in contesting
such assessment at the request or upon the authorization of Client; provided,
however, that Accenture shall not be required to contest any such assessment unless
requested or authorized to do so by the Client, and payment by Accenture of an
assessed deficiency which it was not timely requested or authorized by Client to
contest will be deemed a payment which Accenture was required to pay to the
appropriate government entity; and, provided further, that if Client so requests
Accenture to challenge the imposition of such taxes, Accenture shall retain the
right to refuse to contest such an action and shall bear the associated tax costs.
	 
	 	(g)	 	The Parties will reasonably cooperate with each other to more accurately
determine each Party’s tax liability and to minimize such liability to the extent
legally permissible, including, without limitation and subject to the Change Control
Process, providing services from a different Accenture Service Location. Client and
Accenture will provide and make available to the other any resale certificates,
withholding tax certificates, information regarding out-of-state sales or use of
equipment, materials or services, and other exemption certificates or information
reasonably requested by either Party.
	 
	 	(h)	 	For purposes of this Agreement, taxes shall include taxes incurred on
transactions between and among Accenture, its Affiliates and third-party
subcontractors, to the extent such transactions are requested by Client or such taxes
are incurred in connection with the provision of the Services to Client by such
Accenture Affiliates or third-party subcontractors.

ARTICLE XI

REPRESENTATIONS AND WARRANTIES

	11.1	 	Accenture Representations and Warranties. Accenture hereby represents and warrants to Client
as follows:

23

 

	 	(a)	 	Organization; Power. Accenture is a general partnership registered as a
limited liability partnership duly organized, validly existing and in good standing
under the laws of the State of Illinois. Accenture has all requisite partnership power
and authority to execute and deliver this Agreement and to perform its obligations
hereunder.
	 
	 	(b)	 	Authority; Enforceability. The execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby have been duly authorized by
all requisite action on the part of Accenture. This Agreement constitutes the legal,
valid and binding agreement of Accenture, enforceable against Accenture in accordance
with its terms (except insofar as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally, or by principles governing the availability of equitable remedies).
	 
	 	(c)	 	Noncontravention. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby will not (i) conflict with or
result in any violation of any provision of the partnership agreement of Accenture, as
amended to date; (ii) conflict with, result in any violation or breach of, constitute a
default under, give rise to any right of termination or acceleration (with or without
notice or the lapse of time or both) pursuant to, or result in being declared void or
voidable, any term or provision of any note, bond, mortgage, indenture, lease, license,
contract or other instrument to which Accenture is a party or by which any of its
properties or assets are or may be bound; or (iii) violate any current order, writ,
injunction, decree, statute, rule or regulation applicable to Accenture.
	 
	 	(d)	 	Approvals. Accenture warrants that it has all necessary licenses and
government authorizations to perform its obligations hereunder, the Services to be
provided hereunder and in the applicable Services Agreements.
	 
	 	(e)	 	Service Performance. Accenture warrants that it will perform the Services in a
good and workmanlike manner.
	 
	 	(f)	 	Employees. Accenture warrants that the Accenture employees utilized in the
provision of Services to Client will possess suitable training, education, experience
and skill to perform the Services.
	 
	 	(g)	 	Disabling Code. Accenture warrants that it will not, without notifying Client,
knowingly insert, or knowingly allow to be inserted, into the software used to provide
the Services any code or other device that is designed to disable, damage, erase, delay
or otherwise shut down all or any portion of the Services or the hardware, software or
data used in providing the Services.

	11.2	 	Client Representations and Warranties. Client hereby represents and warrants to Accenture
as follows:

24

 

	 	(a)	 	Client is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware. Client has all requisite corporate power and
authority to execute and deliver this Agreement and to perform its obligations
hereunder.
	 
	 	(b)	 	The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, have been duly authorized by all requisite corporate
action on the part of Client. This Agreement constitutes the legal, valid and binding
agreement of Client, enforceable against Client in accordance with its terms (except
insofar as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally, or by
principles governing the availability of equitable remedies).
	 
	 	(c)	 	The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby will not (i) conflict with or result in any
violation of any provision of the charter or bylaws of Client, each as amended to
date; (ii) conflict with, result in any violation or breach of, constitute a default
under, give rise to any right of termination or acceleration (with or without notice
or the lapse of time or both) pursuant to, or result in being declared void or
voidable, any term or provision of any note, bond, mortgage, indenture, lease,
license, contract or other instrument to which Client is a party or by which any of
its properties or assets are or may be bound; or (iii) violate any current order,
writ, injunction, decree, statute, rule or regulation applicable to Client.
	 
	 	(d)	 	Client warrants that it has all necessary licenses and government
authorizations (including, but not limited to, any necessary third-party administrator,
adjuster, or producer licenses) to perform its obligations hereunder and allow
Accenture to perform for its benefit and as its contractor, the Services provided
hereunder and in the applicable Services Agreement(s).

	11.3	 	Disclaimer of Warranties. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS ARTICLE XI OR IN
ANY SERVICES AGREEMENT, THE PARTIES MAKE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,
REGARDING ANY MATTER, INCLUDING FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY,
INFORMATIONAL CONTENT, SYSTEMS INTEGRATION, NON-INFRINGEMENT, INTERFERENCE WITH ENJOYMENT, OR
RESULTS TO BE DERIVED FROM THE USE OF ANY SERVICE, SOFTWARE, HARDWARE, DELIVERABLES, WORK
PRODUCT OR OTHER MATERIALS PROVIDED UNDER THIS AGREEMENT. ACCENTURE EXPRESSLY DISCLAIMS ANY
WARRANTY OF THE ACCURACY OR COMPLETENESS OF DATA, OPERATIONAL CRITERIA OR PARAMETERS PROVIDED
BY CLIENT. ACCENTURE DOES NOT REPRESENT OR WARRANT THAT THE OPERATION OF ANY SOFTWARE WILL BE
UNINTERRUPTED OR ERROR FREE.

25

 

ARTICLE XII

ADDITIONAL COVENANTS

	12.1	 	Additional Covenants.

	 	(a)	 	Each Party will use commercially reasonable efforts through the use of industry
standard virus protection software and other customary procedures to screen any
software provided or made available by it to the other Party hereunder to avoid
introducing any “virus” or other computer software routine or hardware components that
materially disrupts the proper operation of or provide improper access to the systems.
If such a virus is found to have been introduced by Accenture into such systems,
Accenture will use commercially reasonable efforts
to assist Client in mitigating the effects of the virus, if any, on that portion of
Client’s information technology environment relating to the Services.

ARTICLE XIII

CONFIDENTIALITY; SAFEGUARDING OF DATA

	13.1	 	Confidentiality.

	 	(a)	 	In connection with this Agreement, each of the Parties has disclosed and may
continue to disclose to the other Party information that relates to the disclosing
Party’s business operations, financial condition, customers, products, services,
technical knowledge, or other confidential proprietary or trade secret information.
Except as otherwise specifically agreed in writing by the Parties, Accenture and Client
each agree that (i) all information communicated to it by the other and identified as
confidential or proprietary, whether before or after the Effective Date, (ii) all
information identified as confidential or proprietary to which it has access in
connection with the Services, whether before or after the Effective Date, (iii) all
information communicated to it that reasonably should have been understood by the
receiving Party, because of confidentiality or similar legends, the circumstances of
disclosure or the nature of the information itself, to be proprietary and confidential
to the disclosing Party, and (iv) the terms and conditions of this Agreement
(collectively, the “Confidential Information”), will be and will be deemed to have been
received in confidence and will be used only for purposes of this Agreement. The
Parties acknowledge that third-party software may be subject to additional
confidentiality restrictions imposed by the applicable vendor’s license or other
agreement.
	 
	 	(b)	 	Each Party’s Confidential Information will remain the property of that Party
except as otherwise expressly provided in this Agreement. Each of the Parties will use
at least the same degree of care to safeguard and to prevent disclosing to third
parties the Confidential Information of the other as it employs to avoid unauthorized
disclosure or publication of its own information (or information of its customers) of a
similar nature, and in any event, no less than

26

 

reasonable care. Each Party may
disclose relevant aspects of the other Party’s Confidential Information to its
employees, Affiliates, subcontractors and agents to the extent such disclosure is
reasonably necessary for the performance of its obligations or the enforcement of its
rights under this Agreement or, solely with respect to the terms of this Agreement and
any financial information derived from the performance of this Agreement, in connection
with any proposed acquisition involving such Party or any portion of its business or
securities; provided, however, that such Party will use reasonable efforts to ensure
that such employees, Affiliates, subcontractors or agents comply with these
confidentiality provisions. Each Party will be responsible for any improper disclosure
of Confidential Information by such Party’s employees, Affiliates, subcontractors or
agents. A Party may reuse for its own purposes with third parties the terms and
conditions of this Agreement, provided that (i) such use in no way may be
attributed to the other Party, this Agreement or the relationship between Accenture
and Client and (ii) such use is not used in negotiations with the other Party or any
of the other Party’s Affiliates for any other contractual arrangement.

	 	(c)	 	Neither Party will (i) make any use or copies of the Confidential Information
of the other except as contemplated by this Agreement, (ii) acquire any right in or
assert any lien against the Confidential Information of the other, or (iii) sell,
assign, lease or otherwise commercially exploit the Confidential Information (or any
derivative works thereof) of the other Party. Neither Party may withhold the
Confidential Information of the other Party or refuse for any reason (including due to
the other Party’s actual or alleged breach of this Agreement) to promptly return to the
other Party its Confidential Information (including copies thereof) if requested to do
so. Upon expiration or any termination of this Agreement and completion of a Party’s
obligations under this Agreement (including all Services Agreements), each Party will
(except as otherwise provided in this Agreement or a Services Agreement) return or
destroy, as the owner may direct, all documentation in any medium that contains or
refers to the other Party’s Confidential Information, and retain no copies. Subject to
the foregoing confidentiality obligations, either Party may retain copies of the
Confidential Information of the other Party to the extent required for (i) in the case
of Accenture, compliance with applicable professional standards or quality assurance
purposes and (ii) in the case of Client, its continuing operations or internal business
purposes.
	 
	 	(d)	 	This Section 13.1 will not apply to any particular information that
either Party can demonstrate (i) was, at the time of disclosure to it, in the public
domain; (ii) after disclosure to it, is published or otherwise becomes part of the
public domain through no fault of the receiving Party; (iii) was in the possession of
the receiving Party at the time of disclosure to it and was not the subject of a
pre-existing confidentiality obligation; (iv) was received after disclosure to it from
a third party who had a lawful right to disclose such information (without
corresponding confidentiality obligations) to it; or (v) was independently developed by
the receiving Party without use of the Confidential Information of the disclosing
Party. In addition, a Party will not be considered to have breached

27

 

its obligations
under this Section 13.1 for disclosing Confidential Information of the other
Party to the extent required to satisfy any legal requirement of a competent
governmental authority, provided that promptly upon receiving any such request and to
the extent that it may legally do so, such Party advises the other Party prior to
making such disclosure in order that the other Party may object to such disclosure,
take action to ensure confidential treatment of the Confidential Information, or
(subject to applicable law) take such other action as it considers appropriate to
protect the Confidential Information.

	 	(e)	 	Nothing contained in this Section 13.1 will be construed as obligating
a Party to disclose its Confidential Information to the other Party, or as granting to
or conferring on a Party, expressly or impliedly, any rights or license to the
Confidential Information of the other Party.

	13.2	 	Client Data.

	 	(a)	 	For the purposes of this Agreement, the term “Personal Information” means any
“nonpublic personal information” as such term is defined under the Title V of the U.S.
Gramm-Leach-Bliley Act, 15 U.S.C. § 6801 et seq., and the rules and regulations issued
thereunder. As to any Services Agreement, the obligations to protect Personal
Information against unauthorized access or disclosure set forth in this Section
13.2 applicable to such Services Agreement shall survive termination of such
Services Agreement. Any change in the Services required by law or regulation that
increases Accenture’s costs and expenses with respect to compliance with this
Section 13.2 will be subject to the operation of the Change Control Process.
Notwithstanding anything to the contrary contained in this Agreement, with respect to
any Personal Information delivered or made available to Accenture as a result of the
provision of the Services under this Agreement, Accenture agrees that:

	 	(i)	 	as between Client and Accenture, Client owns and retains all
rights in and to such Personal Information provided to Accenture as a result of
the provision of the Services under this Agreement, and Accenture shall use and
manipulate such Personal Information solely for the purposes of performing the
Services hereunder and not for any other purposes;
	 
	 	(ii)	 	Accenture shall maintain a reasonable information security
program designed to keep and provide appropriate administrative, technical and
physical measures to secure and protect such Personal Information against
unauthorized, unlawful or accidental access, disclosure, transfer, destruction,
loss or alteration;
	 
	 	(iii)	 	Accenture shall limit access to such Personal Information
provided by Client to Accenture to a “need-to-know” basis and shall inform the
Accenture employees and subcontractors who have access to such Personal
Information of its confidential nature and the limitations and procedures that
apply to access and use of such Personal Information;

28

 

	 	(iv)	 	Accenture shall not disclose or make available such Personal
Information provided to Accenture as a result of the provision of the Services
under this Agreement to subcontractors performing Services without entering
into a written agreement with such subcontractor whereby the subcontractor
agrees to comply with, and treat such Personal Information in accordance with,
this Section 13.2(a);
	 
	 	(v)	 	Accenture shall promptly notify Client when Accenture becomes
aware of any unauthorized access of such Personal Information provided to
Accenture as a result of the provision of the Services under this Agreement or
Accenture becomes the subject of any government, other enforcement or private
proceeding relating to its data handling practices in connection with the
Services, and in the case of any legal or regulatory
obligation to disclose such Personal Information, Accenture shall notify and
co-operate with Client to limit any disclosure to the minimum required by
law and, to the extent possible, request that such Personal Information be
kept confidential;
	 
	 	(vi)	 	Accenture shall use and process such Personal Information
provided by Client to Accenture in accordance with those written procedures and
standards notified to Accenture by Client in writing reasonably in advance of
any date of required compliance, and Client shall be responsible for the
sufficiency of such procedures and standards;
	 
	 	(vii)	 	Accenture shall not, except as explicitly agreed to in writing
by Client or otherwise required to perform the Base Services, collect any
Personal Information from Client employees or customers from any cookies,
applets, Web bug or beacons or similar technologies;
	 
	 	(viii)	 	Accenture shall, upon the reasonable request of Client, provide Client with
information regarding its privacy/data protection practices and shall allow
Client reasonable access to audit such practices in accordance with Section
19.1; and
	 
	 	(ix)	 	Accenture shall, upon termination of the applicable Services
Agreement, promptly and in a secure manner return to Client all Personal
Information provided to Accenture under such Services Agreement, or, at
Client’s written direction, destroy such Personal Information unless any
legislation or legal action prevents it from doing so in which case Accenture
shall keep such Personal Information secure and confidential until such
legislation or legal action no longer prevents Accenture from returning or
destroying such Personal Information.

	13.3	 	Exclusions. Nothing in Section 13.2 shall affect any data or information that
Accenture receives from a third party outside of this Agreement, nor shall Section
13.2 affect Accenture’s rights to use such data or information, provided that if Accenture
receives any such data or information that is identical to any Personal Information

29

 

provided
to Accenture by Client hereunder, Accenture’s obligations under Section 13.2 shall not
be diminished. For avoidance of doubt, and as an example only, if Accenture receives the same
name and Social Security number from both Client and a third party not acting on behalf of
Client, then this Agreement does not restrict how Accenture will handle or use the information
received from the third party, but Accenture will remain subject to Section 13.2 with
respect to the information received from Client.

	13.4	 	Unauthorized Acts. Each Party will:

	 	(a)	 	notify the other Party promptly of any material unauthorized possession, use or
knowledge, or attempt thereof, of the other Party’s Confidential Information by any
Person that may become known to such Party;
	 
	 	(b)	 	promptly furnish to the other Party details of the unauthorized possession, use
or knowledge, or attempt thereof, and use reasonable efforts to assist the other Party
in investigating or preventing the recurrence of any unauthorized possession, use or
knowledge, or attempt thereof, of Confidential Information;
	 
	 	(c)	 	use reasonable efforts to cooperate with the other Party in any litigation and
investigation against third parties deemed necessary by the other Party to protect its
proprietary rights; and
	 
	 	(d)	 	promptly use reasonable efforts to prevent a recurrence of any such
unauthorized possession, use or knowledge of Confidential Information.

The Party whose Confidential Information is the subject of such activity will reimburse any
out-of-pocket expenses incurred by the other Party as a result of compliance with this
Section 13.4.

ARTICLE XIV

PROPRIETARY RIGHTS

	14.1	 	Ownership of Client-Owned Software. As between the Parties, Client will be the sole and
exclusive owner of the Client-Owned Software. Any derivatives, modifications, enhancements or
improvements to the Client-Owned Software (or its related documentation) developed by
Accenture is Work Product and subject to Section 14.3.
	 
	14.2	 	Ownership of Accenture Software. As between the Parties, Accenture will be the sole and
exclusive owner of the Accenture Software. Any derivatives, modifications, enhancements or
improvements to the Accenture Software (or its related documentation) developed by Accenture
will not be considered Work Product and will be owned exclusively by Accenture, unless
otherwise expressly agreed to by the parties in writing.
	 
	14.3	 	Ownership of Work Product.

As used in this Agreement:

30

 

	 	14.3.1	 	The term “Deliverables” shall mean reports, documents, templates, studies, software
programs or components in both source code and object code, specifications, business
methods, tools, methodologies, processes, techniques, analytical frameworks,
algorithms, know-how, processes, products, documentation, abstracts and summaries
thereof, and other work product and materials which are originated and prepared for
Client by Accenture (either independently or in concert with Client or third parties)
and delivered to Client during the course of Accenture’s performance under this
Agreement, all as may be specified in an Arrangement Letter. Deliverables shall be
comprised of Custom Components and/or Accenture Software;
	 
	 	14.3.2	 	The term “Custom Components” shall mean reports, documents, templates, studies,
software programs in both source code and object code, specifications, business
methods, tools, methodologies, processes, techniques, analytical frameworks,
algorithms, know-how, processes, products, documentation, abstracts and summaries
thereof, and other work product and materials which are originally developed by
Accenture (either independently or in concert with Client or third parties), during the
course of the Services and supplied as, or as part of, a Deliverable, but excluding,
for the avoidance of doubt, any Accenture Software; and
	 
	 	14.3.3	 	The Deliverables to be provided by Accenture to Client shall be identified in an
Arrangement Letter as being Category A, B, C, D, or E Deliverables, and, subject in all
cases to Section 14.4 below and to any restrictions applicable to any
third-party materials embedded in the Deliverables, the rights to such Deliverables
shall be in accordance with the definitions set forth below. In the event that a
Services Agreement is silent as to the category of Deliverables, the parties agree that
the Deliverables developed under such a Services Agreement or otherwise delivered
pursuant to the Services shall be considered Category B Deliverables. In all
categories, (i) to the extent any Deliverable contains Confidential Information, it
shall be subject to Section 13.1 above and (ii) after acceptance of a
Deliverable by Client, and pending final payment, Accenture hereby grants to Client a
revocable, nontransferable, non-exclusive unpaid right and license to use, copy, modify
and prepare derivative works of the Custom Components for purposes of Client’s internal
business only.

	 	(i)	 	“Category A Deliverables”. Category A Deliverables are those
Deliverables in the Custom Components or other Work Product of which, upon
final payment, Accenture shall grant to Client a perpetual, nontransferable
(except as provided in the following sentence), non-exclusive paid-up right and
license to use, copy, modify and prepare derivative works for purposes of
Client’s internal business only. Notwithstanding the foregoing, Client may
transfer or sublicense any Category A Deliverable to a third-party purchaser of
a portion of Client’s business or assets, provided that (x) such Category A
Deliverable is or has been in regular and continuous use by the transferred
business and assets

31

 

during the normal course of Client’s internal business,
prior to the effective date of transfer or sublicense, (y) Client delivers
prompt notice to Accenture of the fact of such transfer or sublicense, and (z)
solely with respect to a sublicense, the instrument granting such sublicense
names Accenture as an express third-party beneficiary. Client shall provide
Accenture with advance written notice of such transfer or sublicense as soon as
reasonably practicable.

	 	(ii)	 	“Category B Deliverables”. Category B Deliverables are those
Deliverables in the Custom Components or other Work Product of which, upon
final payment, Client and Accenture shall jointly own all right title
and interest, without any right or duty of accounting to the other party and
in relation to which each party shall, and does hereby, assign and convey to
the other all rights, titles and interests necessary to give full effect to
such joint ownership.
	 
	 	(iii)	 	“Category C Deliverables”. Category C Deliverables are those
Deliverables in the Custom Components or other Work Product of which, upon
final payment, Accenture shall assign and convey to Client copyright.
Accenture (or its third-party licensors) shall have and/or retain all other
right, title and interest in such Category C Deliverables; provided, however,
that, with respect to any other intellectual property rights embedded in the
Custom Components which are not assigned or conveyed to Client, upon final
payment Accenture shall grant to Client a perpetual, non-exclusive,
nontransferable (except as provided in the following sentence), paid-up,
worldwide right and license to use, copy, modify, and prepare derivative works
of any and all components of such Custom Components for the purposes of
Client’s internal business only. Notwithstanding the foregoing, Client may
transfer or sublicense the license to embedded intellectual property rights in
the immediately preceding sentence in this subsection (iii) to a third-party
purchaser of a portion of Client’s business or assets, provided that (x) such
embedded intellectual property is used solely in connection with the applicable
transferred Category C Deliverable, (y) Client delivers prompt notice to
Accenture of the fact of such transfer or sublicense, and (z) solely with
respect to a sublicense, the instrument granting such sublicense names
Accenture as an express third-party beneficiary.

Accenture acknowledges that such Custom Components may be considered “works
made for hire” under applicable copyright laws. To the extent the Custom
Components are not deemed “works made for hire” under applicable copyright
law, Accenture hereby irrevocably assigns and transfers to Client copyright
in such Custom Components and shall execute all documents reasonably
requested by Client for the purpose of assigning to Client copyright in such
Custom Components.

32

 

	 	(iv)	 	“Category D Deliverables”. Category D Deliverables are those
Deliverables in the Custom Components or other Work Product of which, upon
final payment, (a) Accenture shall assign and convey to Client all right, title
and interest and (b) Client grants to Accenture, and its third-party designees,
a perpetual, transferable, worldwide, irrevocable, royalty-free, fully paid-up
license to use, copy, modify and prepare derivative works of the Custom
Components and any applicable intellectual property rights granted to Client
under the foregoing paragraph or that Client may file for, register or
otherwise obtain in relation to, or resulting from, any Deliverable (and/ or
any component thereof), including without limitation, any patent and any
counterparts thereof, or any divisions, substitutes, continuations, reissues or
reexaminations thereof (such rights including,
without limitation, the right to make, have made, use, import, offer for
sale and sell or otherwise provide or dispose of products and services using
or incorporating the same) or to practice any process in connection
therewith, with the right to sublicense the same.
	 
	 	(v)	 	“Category E Deliverables”. Category E Deliverables are those
Deliverables in the Custom Components or other Work Product of which, upon
final payment, Accenture shall assign and convey to Client all right, title and
interest.

	 	14.3.4	 	With respect to Category B Deliverables, in the event that either Accenture or the
Client, or both, wish to patent the invention(s) embodied in any Custom Components or
any component thereof, they shall cooperate with each other in filing and prosecuting
one or more patent applications – to the extent that inventorship does not belong
solely to either Client or Accenture. Where co-inventorship exists, and where the
parties agree to, and do, share equally in the cost of prosecuting the patent
applications, they shall jointly own any resulting patent(s) without any right or duty
of accounting to the other party. Where co-inventorship exists, and where the parties
agree that one of them shall pay more than half of the cost of prosecuting the patent
applications, and it does so, that party shall receive from the other party an
assignment of the other’s interest in the patent(s) in exchange for a perpetual,
transferable, worldwide, irrevocable, royalty-free, fully paid-up license–including,
without limitation, the right to make, have made, use, import, offer for sale and sell
or otherwise provide or dispose of products and services using or incorporating the
same, or to practice any process in connection therewith, and with the right to
sublicense the same.
	 
	 	14.3.5	 	With respect to Category D and/or Category E Deliverables, in the event that Client
elects to file an application for a patent in any jurisdiction respecting any Custom
Components or any component thereof, Client shall promptly notify Accenture, and
Accenture shall reasonably cooperate with Client (at Client’s expense) in preparing,
submitting and prosecuting the patent application. Client shall keep Accenture
informed about the status of each such patent application during its pendency in its
respective patent examination organization. Client shall

33

 

not be entitled, at any time,
to file, or to seek to file, an application for a patent which includes claims solely
directed to Accenture Software.

	 	14.3.6	 	The Parties shall cooperate with each other and execute such other documents as may
be necessary and appropriate to achieve the objectives of this Section.

	14.4	 	Embedded Accenture Software. The following provisions will apply to any Accenture Software
incorporated or embedded into any Deliverable or other Work Product:

	 	(a)	 	If Accenture incorporates or embeds any Accenture Software into any Category B,
C, D or E Deliverable (“Embedded Accenture Software”), Accenture
will not be deemed to have transferred or assigned any rights therein to Client.
Accenture will grant to Client a nonexclusive, limited nontransferable (except as
provided in the following sentence), worldwide, royalty-free, perpetual license in
all Accenture intellectual property included in such Embedded Accenture Software to
use, maintain, modify, enhance and create derivative works of such Embedded
Accenture Software (i) to the extent necessary to use or maintain such Deliverable
for Client’s normal internal business purposes and (ii) solely as used in such
Deliverable and not as a “stand-alone” product or separately from such Deliverable
in which it is embedded. In the event of any sublicense of a Category A Deliverable
or Category C Deliverable by Client pursuant to Section 14.3, the foregoing
license shall be included in such sublicense solely for the term of the Termination
Assistance Services provided by Accenture to such sublicensee pursuant to
Section 21.3(b).
	 
	 	(b)	 	Notwithstanding such license, Accenture will be the sole and exclusive owner of
any modifications, enhancements and improvements to, or derivatives of, any Embedded
Accenture Software – which shall be specifically defined or identified prior to
implementation — made by Client or its contractors pursuant to the above license (the
“Accenture Software Enhancements”). All Accenture Software Enhancements will be deemed
part of the license granted to Client pursuant to Section 14.4(a).
	 
	 	(c)	 	Client agrees to execute any appropriate documents and take any other
appropriate actions reasonably requested by Accenture to effectuate the purposes of
this Section 14.4.
	 
	 	(d)	 	Client will not have any interest in or claim to any Accenture Software, other
than the above license to the Embedded Accenture Software.

	14.5	 	Proprietary Items. In the course of performing under this Agreement, Accenture may use
products, materials, tools and methodologies that are proprietary to Accenture or to third
parties (collectively, “Proprietary Items”). As between Client and Accenture, Proprietary
Items will be deemed Confidential Information of Accenture for purposes of Section
13.1. Except as expressly set forth herein or in a Services Agreement, Client will

34

 

have or obtain no rights in such Proprietary Items (or in any modifications or enhancements
thereto) other than (i) to use them as authorized by Accenture in writing from time to time
solely for purposes of performing its responsibilities under an applicable Services Agreement,
(ii) to the extent the Proprietary Items constitute Embedded Accenture Software under
Section 14.4, to use them as part thereof as provided in Section 14.4, or
(iii) pursuant to Accenture’s standard license for such Proprietary Items or, in the case of
Proprietary Items owned by third parties, pursuant to terms acceptable to the applicable third
party. If Proprietary Items are made available to Client under clause (i) or (ii) above, they
will be made available on an “AS IS” basis and without express or implied warranties of any
kind. Proprietary Items made available under clause (iii) above will be subject to the terms
of the applicable license.

	14.6	 	Critical Accenture Licensed Software. Except as otherwise expressly provided in a Services
Agreement, any Accenture Software licensed from a third party (including Accenture derivatives
thereto) that is being used to provide the Services upon the expiration or termination of any
Services Agreement and that would be required by Client or an alternative service provider to
continue the Services (other than generally available commercial desktop software) are
referred to in this Agreement and the applicable Services Agreements as the “Critical
Accenture-Licensed Software.” Accenture will (i) inform Client of the existence and ownership
of, and the extent of Accenture’s rights to, all such Critical Accenture-Licensed Software
(including Accenture derivatives thereto) and (ii) use commercially reasonable efforts to
obtain for Client a perpetual (or to the extent customarily available, automatically
renewing), nonexclusive license to use, maintain, modify, enhance and create derivative works
of such Critical Accenture-Licensed Software effective upon the expiration or termination of
the applicable Services Agreement and upon the third-party vendor’s standard terms and
conditions but at no additional charge to Client. If Accenture is unable to obtain the
license (or the agreement to grant a license) as described above, then prior to introducing
such Critical Accenture-Licensed Software (including Accenture derivatives thereto), Accenture
will notify Client of its inability to obtain for Client such a license or agreement and the
proposed Critical Accenture-Licensed Software-vendor’s then-current terms and conditions, if
any, for making such materials (including Accenture derivatives thereto) available to Client
upon expiration or termination of this Statement of Work. With Client’s prior approval,
Accenture may then introduce such Critical Accenture-Licensed Software for use in providing
the Services .
	 
	14.7	 	Knowledge Capital. Nothing in this Agreement will preclude Accenture from acquiring,
marketing, developing, distributing, licensing or using for itself or others, services,
products or technology that are the same as or similar to those provided to Client by
Accenture pursuant to this Agreement. Furthermore, Accenture will continue to be free to use
the general knowledge, skills and experience and any ideas, concepts, know-how and techniques
that are acquired or used in the course of providing the Services. This Section 14.7
will not diminish Accenture’s obligations regarding Confidential Information under Section
13.1.

35

 

ARTICLE XV

INDEMNIFICATION

	15.1	 	Indemnification by Accenture. Accenture will indemnify, defend and hold harmless Client,
Client Affiliates and their respective employees, principals (partners, shareholders or other
holders of an ownership interest, as the case may be), directors and agents from and against
any and all Losses arising from claims by third parties, whether based in whole or in part in
contract, tort, negligence, statute or otherwise, arising from any of the following:

	 	(a)	 	the death of or bodily injury to any employee of Client or any Client Affiliate
(or their respective subcontractors) to the extent directly caused by the gross
negligence or willful misconduct of Accenture or any Accenture Affiliate;
	 
	 	(b)	 	the loss of or damage to the real or tangible personal property (whether owned
or leased) of Client, any Client Affiliate or any of their respective employees or
subcontractors to the extent directly caused by the gross negligence or willful
misconduct of Accenture or any Accenture Affiliate;
	 
	 	(c)	 	the failure of Accenture to perform any of its obligations under any license,
lease or other agreement (i) between Accenture and a third party or (ii) for which
Accenture has assumed administrative, financial or operational responsibility (as
applicable) pursuant to this Agreement and has obtained a complete copy of such
license, lease or other agreement;
	 
	 	(d)	 	Accenture’s failure to obtain any Consents for which Accenture is
administratively responsible pursuant to the provisions of this Agreement;
	 
	 	(e)	 	any claim asserted against Client by current or former employees of Accenture
arising out of actions or omissions of Accenture in the performance of Services after
the Effective Date of this Agreement (including any Services Agreements) during the
period of such employee’s employment with Accenture;
	 
	 	(f)	 	any claim asserted against Client by a Transferred Employee to the extent such
claim arises from decisions, acts, omissions or violations of statute by Accenture with
respect to such Transferred Employee’s employee/employer relationship with Accenture
but not to the extent attributable to erroneous or incomplete information provided by
Client;
	 
	 	(g)	 	Accenture’s failure to pay and discharge any taxes (including interest and
penalties) for which Accenture is responsible pursuant to the provisions of this
Agreement.

	15.2	 	Indemnification by Client. Client will indemnify, defend and hold harmless Accenture,
Accenture Affiliates and their respective employees, principals (partners, shareholders or
other holders of an ownership interest, as the case may be) and agents from and against any
and all Losses arising from claims by third parties, whether based in

36

 

	 	 	 whole or in part in contract, tort, negligence, statute or otherwise, arising from any of the following:

	 	(a)	 	the death of or bodily injury to any employee of Accenture or any Accenture
Affiliate (or their respective subcontractors) to the extent directly caused by the
gross negligence or willful misconduct of Client or any Client Affiliate;
	 
	 	(b)	 	the loss of or damage to the real or tangible personal property (whether owned
or leased) of Accenture, any Accenture Affiliate or any of their respective employees
or subcontractors to the extent directly caused by the gross negligence or willful
misconduct of Client or any Client Affiliate;
	 
	 	(c)	 	the failure of Client to perform any of its obligations under any license,
lease or other agreement between (i) Client and a third party (except to the extent
the liability arises out of a failure of Accenture to perform an obligation assumed
by Accenture under this Agreement) or (ii) for which Client has assumed or retained
administrative, financial or operational responsibility (as applicable) pursuant to
this Agreement;
	 
	 	(d)	 	Client’s failure to obtain any Consents for which Client is administratively
responsible pursuant to the provisions of this Agreement or to have all necessary
licenses or permits (including, but not limited to, any necessary third-party
administrator, adjuster, or producer licenses);
	 
	 	(e)	 	any claim asserted against Accenture by current or former employees of Client
arising out of actions or omissions of Client related to this Agreement (including any
Services Agreements) during the period of such employee’s employment with Client;
	 
	 	(f)	 	any failure of Accenture to perform under any Accenture-Managed Agreement to
the extent Accenture’s non-performance arose from errors or omissions in Client’s
description of such Accenture-Managed Agreement delivered pursuant to Section
6.1 in lieu of complete and accurate copies of such Accenture-Managed Agreement; or
	 
	 	(g)	 	any third-party claim which arises in connection with the use by Client of any
deliverable or Services provided by Accenture to Client under this Agreement, except to
the extent (i) covered by Accenture’s indemnities set forth in Section 15.1 or
15.3, (ii) directly caused by Accenture’s negligence or willful misconduct, or
(iii) directly caused by the failure of Accenture to meet any Service Level (other than
Service Levels being measured in connection with any applicable Burn-In Period) or
Accenture’s breach of any other material obligation hereunder.

	15.3	 	Infringement Indemnity.

37

 

	 	(a)	 	Accenture will indemnify, defend and hold harmless Client, any Client
Affiliates and their respective employees, principals (partners, shareholders or other
holders of an ownership interest, as the case may be) and agents from and against any
and all Losses to any third party from claims that any Services, Work Product or
Accenture Software (or the access or other rights thereto) provided by Accenture to
Client pursuant to this Agreement (i) infringes a copyright held by that third party
perfected under United States statute; (ii) constitutes misappropriation or unlawful
disclosure or use of a third party’s trade secrets; or (iii) infringes a valid United
States patent issued to a third party at the time a Deliverable is provided to Client
or as of the applicable Services commencement date set forth in the applicable Services
Agreement (collectively, “Infringement Claims”).
	 
	 	(b)	 	Client will indemnify, defend and hold harmless Accenture, any Accenture
Affiliates and their respective employees, principals (partners,
shareholders or other holders of an ownership interest, as the case may be) and
agents from and against any and all Losses arising from claims by third parties that
any equipment, software (including Client-Owned Software), information or other
resources or items (or the access or other rights thereto) provided by Client to
Accenture pursuant to this Agreement (i) infringes a copyright held by that third
party perfected under United States statute; (ii) constitutes misappropriation or
unlawful disclosure or use of a third party’s trade secrets; or (iii) infringes a
valid United States patent issued to a third party of which Client was or should
have been aware of (collectively, “Infringement Claims”), subject to the terms of
Section 15.3(e), below.
	 
	 	(c)	 	Notwithstanding anything to the contrary herein, neither Party will have any
liability or obligation to the other Party, such other Party’s Affiliates or any other
Person under paragraph (a) or (b) above to the extent that the Infringement Claim is
based upon (i) modifications to any item made by or on behalf of the indemnitee in a
manner that causes the infringement, (ii) use of any item in combination with any
hardware, software or other products or services in a manner that causes the
infringement and where such combination was not within the reasonable contemplation of
the Parties given the intended use of the item, (iii) the failure of a Party to use
corrections or enhancements to such deliverables that are made available by the other
Party, (iv) detailed, non-discretionary designs or specifications provided by the
indemnitee that necessarily caused such Infringement Claim, or (v) the indemnitee’s
distribution, marketing or use for the benefit of third parties (other than to provide
Services to the Client hereunder or Client’s use in the ordinary course of business for
the benefit of customers, which for the avoidance of doubt will not include the
provision of services similar to the Services to third parties)) of the deliverable or
item. In addition, Accenture will not be liable for claims of infringement arising from
or related to the provision of help desk services, call center services or automated
attendant services using computer telephony integration.

38

 

	 	(d)	 	If any deliverable, item or Service provided by a Party hereunder is, or in
such Party’s reasonable judgment is likely to become, the subject of an Infringement
Claim, the providing Party, at its expense and in addition to defending the claim and
paying damages as required by (a) or (b) above, will use reasonable efforts to procure
for the other Party the right to use and continue using such deliverable or replace it
with a non-infringing equivalent or modify it to make its use hereunder non-infringing,
provided that such replacement or modification does not result in a degradation of the
performance or quality of the deliverable. If such option is not available on
commercially reasonable terms in the providing Party’s good faith judgment, the
providing Party will so notify the other Party, whereupon (A) the other Party will
cease use of such deliverable or Service and return it to the providing Party and (B)
the Parties will equitably adjust the Service Charges to reflect the added expenses or
discontinuation of Services. In such event, the Parties will seek to establish
mutually acceptable alternative arrangements and to make any appropriate adjustments to
their respective obligations under this Agreement through the execution of a Change
Request pursuant to Section 8.9.
	 
	 	(e)	 	The foregoing provisions of this Section 15.3 constitute the Parties’
sole and exclusive remedies and each Party’s entire liability with respect to
infringement claims.

	15.4	 	Indemnification Procedures. The following procedures will apply with respect to
indemnification for third-party claims arising in connection with this Agreement:

	 	(a)	 	Promptly after receipt by a Person entitled to indemnification hereunder (an
“Indemnitee”) of written notice of the assertion or the commencement of any claim,
demand, action, cause of action or other proceeding by a third party, whether by legal
process or otherwise (a “Claim”), with respect to any matter within the scope of
Sections 15.1, 15.2 or 15.3 the Indemnitee will give written
notice thereof to the Party from whom indemnification is sought pursuant hereto (the
“Indemnitor”) and will thereafter keep the Indemnitor reasonably informed with respect
thereto; provided, however, that the failure of the Indemnitee to give the Indemnitor
such prompt written notice will not relieve the Indemnitor of its obligations hereunder
except to the extent such failure results in prejudice to the Indemnitor’s defense of
such Claim. Within 15 days following receipt of written notice from the Indemnitee
relating to any claim, but no later than 10 days before the date on which any response
to a complaint or summons is due, the Indemnitor will notify the Indemnitee in writing
that the Indemnitor will assume control of the defense and settlement of such claim
(the “Notice”).
	 
	 	(b)	 	If the Indemnitor delivers the Notice relating to any claim within the required
notice period, the Indemnitor will be entitled to have sole control over the defense
and settlement of such claim; provided, however, that the Indemnitee will be entitled
to participate in the defense of such claim and to employ counsel at its own expense to
assist in the handling of such claim. After the Indemnitor has delivered a Notice
relating to any claim in accordance with the preceding

39

 

	 	 	 	paragraph, the Indemnitor will not be liable to the Indemnitee for any legal expenses subsequently incurred by such
Indemnitee in connection with the defense of such claim.
	 
	 	(c)	 	If the Indemnitor fails to assume the defense of any such Claim within the
prescribed period of time, then the Indemnitee may assume the defense of any such Claim
at the cost and expense of the Indemnitor. The Indemnitor will not be responsible for
any settlement or compromise made without its consent, unless the Indemnitee has
tendered notice and the Indemnitor has then failed to assume and defend the claim and
it is later determined that the Indemnitor was liable to assume and defend the claim.
The Indemnitor will reimburse the Indemnitee for its costs and expenses incurred as a
result of Indemnitor’s failure to assume the defense of such Claim.
	 
	 	(d)	 	The Indemnitee will provide reasonable assistance to the Indemnitor (at the
Indemnitor’s expense), including reasonable assistance from the Indemnitor’s employees,
agents, independent contractors and Affiliates, as applicable. Notwithstanding any
provision of this Section 15.4 to the contrary, the Indemnitor will not consent
to the entry of any judgment or enter into any settlement that provides for injunctive
or other non-monetary relief affecting the Indemnitee without the prior written consent
of the Indemnitee, which consent will not be unreasonably withheld or delayed.

ARTICLE XVI

LIMITATION OF LIABILITY AND RISK ALLOCATION

	16.1	 	Limitation of Liability.

	 	(a)	 	Subject to the exclusions set forth in paragraphs (b) and (c) below, if either
Party will be liable to the other Party for any matter relating to or arising from this
Agreement, whether based upon an action or claim in contract, tort, warranty, equity,
intended conduct or otherwise (including any action or claim arising from the acts or
omissions of the liable Party), the aggregate amount of damages recoverable against the
liable Party under any Services Agreement with respect to any and all breaches,
performance, nonperformance, acts or omissions hereunder will not exceed an amount
equal to (i) for Services Agreements with a Services Agreement Term of less than 12
months, the Charges for Services paid to Accenture under the specific Services
Agreement under which such claim arises or (ii) for Services Agreements with a Services
Agreement Term of 12 months or more, the Charges for Services paid to Accenture under
the specific Services Agreement under which such claim arises during the twelve-month
period immediately preceding the most recent event (or if the Services Agreement Term
is at least twelve months and such event occurs within the first twelve months of the
Services Agreement Term, the amount estimated to be paid in the first twelve months of
the Services Agreement Term).

40

 

	 	(b)	 	The limitation described in paragraph (a) above will not apply to (i)
Accenture’s obligations under Sections 13.1 [Confidentiality], 15.1
[Indemnification] or 15.3 (a) [Infringement Indemnity], (ii) Client’s
obligations under Sections 13.1, 15.2 or 15.3(b), (iii) Client’s
nonperformance of its payment obligations for Services provided or for termination or
related charges pursuant to this Agreement, or (iv) willful misconduct by Accenture.
	 
	 	(c)	 	Notwithstanding the exclusion of Section 15.3(a) in paragraph (b)
above, Accenture’s patent indemnity obligations under Section 15.3(a)(iii) for
U.S. patents issued after execution of the applicable Services Agreement shall be
limited to two times the limitation of liability set forth in subsection (a) above for
the applicable Service Agreement.
	 
	 	(d)	 	Each Party has a duty to mitigate the damages that would otherwise be
recoverable from the other Party pursuant to this Agreement by taking appropriate and
commercially reasonable actions to reduce or limit the amount of such damages.
	 
	 	(e)	 	If Accenture fails to meet any Service Level with respect to which a Service
Level Credit applies or if Client is due any Vital Service Credit under Services
Agreement No. 1, in addition to receiving such Service Level Credit or Vital Service
Credit, Client may elect to pursue such other remedies as may be available at law or in
equity against Accenture, subject to the terms and conditions of this Agreement;
provided, however, that any damage award obtained by Client against Accenture shall be
reduced by any Service Level Credit or Vital Service Credit received by Client with
respect to the incident from which such damage award resulted.

	16.2	 	Limitation on Category of Liability. Subject to the exclusions set forth in paragraphs
16.1(b) and (c) above, in no event will the measure of damages payable by either Party
include, nor will either Party be liable for, any consequential, indirect, incidental,
exemplary, special or punitive damages (including, without limitation, damages due to business
interruption or lost profits, savings, competitive advantage or goodwill) arising from or
related to this Agreement, regardless of the type of claim, whether in contract, tort,
warranty, negligence, strict liability or other legal or equitable theory, whether or not
foreseeable, and regardless of the cause of such damages even if the Party has been advised of
the possibility of such damages in advance.

	16.3	 	Contractual Statute of Limitation. Neither Party may assert against the other Party any
claim through mediation, arbitration or litigation for breach or nonperformance in connection
with this Agreement unless the asserting Party has given the other Party written notice of the
claim within two years after the asserting Party first knew or reasonably should have known of
the underlying facts giving rise to such claim. Notwithstanding the foregoing, Accenture
shall have no obligation to indemnify Client pursuant to Section 15.3 with respect to
any Deliverable following the fifth anniversary of the delivery date of such Deliverable.

41

 

	16.4	 	Recourse. The Parties agree that they will look only to the corporate or firm assets of the
other Party in connection with any liabilities hereunder and in no event will they have any
claim against any shareholder, partner or holder of an ownership interest in the other Party
in connection with this Agreement.

	16.5	 	Insurance. Accenture shall maintain for its benefit commercial general liability coverage
and umbrella and/or excess liability coverage with minimum total limits of $3,000,000 per
occurrence and in the aggregate for property damage and bodily injury. Accenture shall name
Client as an additional insured for covered claims to the extent Accenture owes client an
indemnity with respect to this Agreement on its commercial general liability and umbrella
and/or excess liability coverage. Accenture shall maintain for itself and its employees a Fidelity Bond in the amount
of $10,000,000 per loss and in the aggregate.

	16.6	 	Allocation of Risks; Acknowledgements and Applicability of Limitations.

	 	(a)	 	Each Party acknowledges to the other that it understands the legal and economic
ramifications of this ARTICLE XVI. Each Party acknowledges that (i) the Parties are
sophisticated commercial enterprises with relatively equal bargaining power, (ii) the
provisions of this ARTICLE XVI were the subject of active and complete negotiation and
constitute an essential element of the benefit of the bargain reflected in this
Agreement, (iii) such provisions, together with the indemnities, representation and
warranties, set forth the bargained-for allocation of risk under this Agreement, (iv)
such Party actively considered such provisions in determining the specific risks that
it assumed in agreeing to its obligations under this Agreement and the price to be paid
to Accenture in consideration for its services under this Agreement and (v) the Parties
had meaningful choices with respect to such provisions, and such provisions are not
unreasonably favorable to either Party. Each Party irrevocably accepts the limitations
and exclusions contained in this ARTICLE XVI.
	 
	 	(b)	 	The limitations and exclusions contained in this ARTICLE XVI will apply
regardless of (i) the form or action (including, without limitation, any action in
contract, warranty, negligence, gross negligence, tort, strict liability or statute and
any action for breach of representation or warranty contained in ARTICLE XI, (ii) any
claim or finding that any breach of or default under this Agreement was total or
fundamental, (iii) the type of damages, (iv) any claim or finding with respect to the
adequacy, failure, purpose or sufficiency of any remedy offered or provided under this
Agreement and (v) whether a Party was informed or aware of, or otherwise could have
anticipated the possibility of, such damages or liability.

ARTICLE XVII

TERMINATION

	17.1	 	Termination for Cause by Client. Client may after (i) complying with ARTICLE VIII, and (ii)
giving at least 30 days prior written notice identifying specifically the basis for such
notice and referring to this Section 17.1, terminate this

42

 

	 	 	Agreement or a Services Agreement, in whole but not in part, for Accenture’s material breach of its material service
obligations under this Agreement or a Services Agreement unless Accenture has within such
30-day period either (x) cured such breach (if such breach is curable) or (y) made substantial
progress to cure such breach (if such breach is curable) and implemented a plan that results
in a cure of such breach within 60 days. Such notice will specify the effective date of such
termination. For the avoidance of doubt, in the event Accenture fails to meet a Critical
Service Level (other than Critical Service Levels being measured pursuant to an applicable
Burn-In Period) expressly agreed upon by the Parties in an applicable Services
Agreement at least four (4) times in six (6) consecutive months, Client may terminate the
applicable Services Agreement pursuant to the provisions of this Section 17.1,
unless otherwise agreed by the Parties in the applicable Services Agreement.
Notwithstanding any provision of this Agreement to the contrary, although Accenture may
undertake the contractual obligation to meet the Service Levels set forth in the applicable
Services Agreement, Accenture’s failure to comply with any particular Service Level (except
with respect to Service Levels being measured during any applicable Burn-In Period) will not
necessarily be deemed to constitute a per se material breach of this Agreement.

	17.2	 	Termination for Cause by Accenture. Accenture may after (i) complying with ARTICLE VIII, and
(ii) giving at least 30 days prior written notice identifying specifically the basis for such
notice and referring to this Section 17.2, terminate this Agreement or a Services Agreement,
in whole but not in part, for (x) the failure by Client to pay undisputed charges owed to
Accenture when due under such Services Agreement or under any such Services Agreement or (y)
to comply with Client’s obligation to pay escrow disputed amounts pursuant to Section
10.9 unless Client has within such 30-day period cured such breach described in (x) or
(y), or (z) Client’s material breach of its obligations under ARTICLE XIII and ARTICLE XIV, or
any other obligation hereunder or under this Agreement or the applicable Services Agreement,
unless Client has within such 30-day period either (1) cured such breach (if such breach is
curable) or (2) made substantial progress to cure such breach (if such breach is curable) and
implemented a plan that results in a cure of such breach within 60 days. In such event,
Client shall be responsible to pay all Stranded Costs, and other Termination Amounts (as set
forth in the applicable Services Agreement(s)). Such notice of termination will specify the
effective date of such termination. For the avoidance of doubt, Accenture shall not suspend
or terminate performance of the Services under any Services Agreement until Accenture has
complied with this Section 17.2; provided, however, that if Accenture terminates for
Client’s failure to pay undisputed amounts (or failure to escrow disputed amounts as required
pursuant to Section 10.9), Accenture may require payment monthly in advance in respect
of Termination Assistance Services.

	17.3	 	Termination for Convenience. On or after the two-year anniversary of the Effective Date,
Client may terminate the Agreement (including all Services Agreements then in effect), in
whole but not in part, for convenience (i.e., for any reason or for no reason) upon at least
six months’ prior written notice to Accenture and payment of any Stranded Costs, and other
Termination Amounts set forth in all the Services Agreements then in effect. Client’s
termination right hereunder is unfettered and unrestricted and is not subject to any good
faith obligations in connection with the exercise of such right.

43

 

	 	 	Client’s payment of the Stranded Costs and Termination Amounts to Accenture pursuant to a Termination for Convenience
is intended to and does wholly compensate Accenture for all amounts arising from the
termination of this Agreement prior to its full term, except for amounts then contractually
due and owing under the Agreement, and all costs and amounts due to Accenture associated with
post-termination assistance to Client.

	17.4	 	Termination for Divestiture . In the event that Client undertakes a spin-off, divestiture or
other corporate transaction that results in a reduction of the volumes of Services below the
identified threshold set forth in a Services Agreement, before Accenture shall be obligated to
make any changes to the affected Services (including increasing or decreasing service volumes
or making changes in the personnel or assets used to deliver the Services), the Parties shall
meet to discuss the impact on the terms, scope and pricing to the Agreement and mutually agree
upon any appropriate changes pursuant to Section 8.9 of this Agreement. In the event
the Parties are unable to reach such mutual agreement within 120 days of such spin-off,
divestiture or other transaction, then Accenture shall have the right to terminate the
affected Services Agreement upon written notice to Client. In the event of any termination
under this Section 17.4, Client shall pay to Accenture the Stranded Costs,
Demobilization Costs and other Termination Amounts then-applicable to such Services Agreement
as if such termination occurred pursuant to Section 17.3.

	17.5	 	Termination for Insolvency. In addition to all other rights or remedies provided for in
this Agreement or by law, either Party may terminate this Agreement (including all Services
Agreements) in whole, but not in part, in the event the other Party: (a) makes a general
assignment for the benefit of creditors, (b) admits in writing its inability to pay debts as
they mature, (c) a trustee, custodian or receiver is appointed by any court with respect to
the other Party or any substantial part of such Party’s assets, (d) an action is taken by or
against the other Party under any bankruptcy or insolvency laws or laws relating to the relief
of debtors, including the United States Bankruptcy Code and such action is not dismissed
within sixty (60) days of commencement of the action; or (e) the other Party is the subject of
a winding-up petition which is not dismissed within five business days, or a resolution is
passed for its winding-up.

	17.6	 	Termination Amounts.

	 	(a)	 	Upon any termination or expiration of this Agreement other than pursuant to
Section 17.1, the provisions of the applicable Services Agreement will apply in
relation to any Termination Amounts due to Accenture under such Services Agreements,
along with any Demobilization and Stranded Costs not specifically included in such
Services Agreements.
	 
	 	(b)	 	If Client purportedly terminates this Agreement pursuant to Section
17.1 but Accenture disputes Client’s right to so terminate this Agreement or a
Services Agreement and it is ultimately determined that Client did not have the right
to terminate this Agreement or a Services Agreement pursuant to Section 17.1,
then for purposes of determining the amounts payable to Accenture pursuant to the

44

 

	 	 	 	applicable Services Agreements, such termination will be deemed to have been a
termination for convenience effected pursuant to Section 17.3.

	17.7	 	Survival of Provisions. Upon the expiration or termination of this Agreement for any reason,
the provisions of ARTICLE XIII, ARTICLE XIV, ARTICLE XV, ARTICLE XVI, ARTICLE XVII, and ARTICLE XXI will
survive indefinitely.

ARTICLE XVIII

DISPUTES

	18.1	 	Informal Dispute Resolution.

	 	(a)	 	Prior to the initiation of formal dispute resolution procedures, the Parties
will first attempt to resolve any dispute, controversy or claim arising under or in
connection with this Agreement (a “Dispute”) informally, as follows:

	 	(i)	 	First, the Client Services Agreement Executive and the
Accenture Services Agreement Executive will meet as often, for a duration and
as promptly as the Parties deem necessary to discuss the Dispute and negotiate
in good faith in an effort to resolve the Dispute.
	 
	 	(ii)	 	If the Client Services Agreement Executive and the Accenture
Services Agreement Executive are unable to resolve the Dispute within 30 days
after the referral of the Dispute to them, the Dispute will be referred to the
applicable Services Agreement Steering Committee. The Services Agreement
Steering Committee will use reasonable efforts to resolve such Dispute or, if
appropriate, to negotiate a modification or amendment to this Agreement or the
applicable Services Agreement. The Service Management Steering Committee will
meet as often, for a duration and as promptly as the Parties reasonably deem
necessary to discuss the Dispute and negotiate in good faith in an effort to
resolve the Dispute.
	 
	 	(iii)	 	If the Services Agreement Steering Committee is unable to
resolve the Dispute within 30 days after such referral, then each of Accenture
and Client will appoint one senior executive who is not involved on a
day-to-day basis with the subject matter of this Agreement. Such senior
executives will meet as often, for a duration, and as promptly as the Parties
reasonably deem necessary to discuss the Dispute and negotiate in good faith in
an effort to resolve the Dispute.
	 
	 	(iv)	 	During the course of such discussions, all reasonable requests
made by one Party to another for non-privileged information, reasonably related
to the Dispute, will be honored in order that each of the Parties may be fully
apprised of the other’s position. The specific format for such discussions
will be left to the discretion of the Parties, but may include the preparation
of agreed-upon statements of fact or written statements of position.

45

 

	 	(b)	 	Formal proceedings for the resolution of a Dispute may not be commenced until
the earlier of:

	 	(i)	 	the good faith determination by the appointed senior executives
that amicable resolution through continued negotiation of the matter does not
appear likely; or
	 
	 	(ii)	 	30 days following the date that the Dispute was first referred
to the appointed senior executives.

	 	(c)	 	For disputes as to payment of fees or other amounts due where the amount in
question exceeds one month’s fees, the time periods for the levels of review provided
in Sections 18.1(a) and 18.1(b) above shall be 10 days rather than 30
days.

	18.2	 	Arbitration. If a Dispute cannot be resolved as provided in Section 18.1, the
Parties will resort to arbitration as set forth below.

	 	(a)	 	Any dispute, controversy, or claim arising out of, relating to, involving, or
having any connection with this Agreement, a Services Agreement, or otherwise related
to Accenture’s Services, including any question regarding the validity, interpretation,
scope, performance, or enforceability of this dispute resolution provision, shall be
exclusively and finally settled by arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association (“AAA”) and the AAA Optional
Procedures for Large, Complex Commercial Disputes. Any arbitration will be conducted
on an individual, rather than a class-wide, basis.

	 	(i)	 	The arbitration shall be conducted in Chicago, Illinois unless
the parties agree on another location.
	 
	 	(ii)	 	The arbitration shall be conducted by three arbitrators. Each
Party shall appoint an arbitrator, obtain its appointee’s acceptance of such
appointment, and deliver written notification of such appointment and
acceptance to the other Party by fifteen (15) days after the due date of the
respondent’s answering statement. The two Party-appointed arbitrators shall
jointly agree upon and appoint a third arbitrator who shall serve as the
chairperson of the arbitral panel. The Party arbitrators shall obtain the
chairperson’s acceptance of such appointment and notify the Parties in writing
of said appointment and acceptance within thirty (30) days after their
appointment and acceptance as Party arbitrators. If the two Party-appointed
arbitrators are unable to agree upon the selection and appointment of the
chairperson within that time frame, they shall so notify the Parties in
writing. Upon such notice, one or both of the Parties may request in writing
that the chairperson be appointed by AAA in accordance with the AAA Rules. The
AAA shall notify the Parties in

46

 

	 	 	 	writing of the appointment and acceptance of
the chairperson within twenty-one (21) days of receiving such request.
	 
	 	(iii)	 	The Parties shall be entitled to engage in reasonable
discovery, including requests for production of relevant non-privileged
documents. Depositions and interrogatories may be ordered by the arbitral
panel upon a showing of need. It is the Parties’ intent that the discovery
proceedings be conducted in a cost-effective manner.
	 
	 	(iv)	 	All decisions, rulings, and awards of the arbitral panel shall
be made pursuant to majority vote of the three arbitrators. The award shall be
in accordance with the applicable law, shall be in writing, and shall state the
reasons upon which it is based. The arbitrators shall have no power to modify
or abridge the terms of this Agreement. The award of the arbitrators shall be
final, and judgment on the award may be entered by any court having
jurisdiction to do so.
	 
	 	(v)	 	Costs incurred in the arbitration proceeding, including
attorneys’ fees and expenses, shall be borne in the manner determined by the
arbitral panel.
	 
	 	(vi)	 	Nothing in this Agreement shall prevent the Parties, prior to
the formation of the arbitral panel, from applying to a court of competent
jurisdiction for provisional or interim measures or injunctive relief as may be
necessary to safeguard the property or rights that are the subject matter of
the arbitration. Once the arbitral panel is in place, it shall have exclusive
jurisdiction to hear applications for such relief, except that any interim
measures or injunctive relief ordered by the arbitral panel may be immediately
and specifically enforced by a court of competent jurisdiction.
	 
	 	(vii)	 	This Section 18.2 shall not apply to any claim arising
from any patent or registered trademark. Such claims shall not be subject to
arbitration and instead shall be subject to judicial resolution. In addition,
any issue regarding the enforceability of the prohibition against class-wide
arbitration will be decided by a court of competent jurisdiction and not by an
arbitrator.
	 
	 	(viii)	 	Unless otherwise agreed by the Parties or required by law, the Parties, the
arbitrators, and AAA shall maintain the confidentiality of all documents,
communications, proceedings, and awards provided, produced, or exchanged
pursuant to an arbitration conducted under this Section 18.2.

	18.3	 	Exceptions to Dispute Resolution Procedure. The provisions of Sections 18.1 and
18.2 will not be construed to prevent a Party from: a) seeking a temporary restraining
order or injunctive or other equitable relief with respect to a breach (or attempted breach)
of this Agreement by the other Party; or b) instituting litigation or other formal

47

 

	 	 	proceedings
to the extent necessary (i) to avoid the expiration of any applicable limitations period or
(ii) to preserve a superior position with respect to other creditors.

ARTICLE XIX

AUDIT RIGHTS

	19.1	 	Operational Audits.

	 	(a)	 	Subject to the provisions of Section 19.3, Accenture will provide to
such auditors (including third-party auditors and Client’s internal audit staff) as
Client may designate in writing, access to any Accenture Service Location at which the
Services are being performed, to appropriate Accenture management personnel and
material subcontractors, and to the data and records maintained by Accenture with
respect to the Services for the purpose of: (i) performing audits and inspections of
Client and its businesses (including any audits necessary to enable Client to meet its
applicable regulatory requirements); (ii) to verify the integrity of Client Data and
the condition of Client-Provided Hardware located at such Accenture Service Location;
(iii) to examine the systems that process, store, support and transmit such Client
Data; and (iv) to confirm that the Services are being provided in accordance with this
Agreement, including the Service Levels. The scope of such audits may, to the extent
applicable, include, without limitation: (x) Accenture’s practices and procedures; (y)
the adequacy of general controls (e.g., organizational controls, input/output controls,
system modification controls, processing controls, system design controls, and access
controls) and security practices and procedures; and (z) the adequacy of disaster
recovery and back-up procedures. Any such audits will be conducted at Client’s
expense.
	 
	 	(b)	 	Accenture will provide an annual type 2 Statement on Auditing Standards (“SAS”)
70 or equivalent audit to Client in all Accenture Service Locations that are common
Accenture delivery centers (i.e., service centers from which services are provided to
multiple clients, such as India, the Philippines, and China), at no cost to Client.
The scope of these reports will be the infrastructure based common controls that
support the clients served from the common Accenture delivery centers. The control
objectives are based upon guidance from the Information Technology Governance
Institute. In addition to this SAS 70 report, Client, at its own expense, may further
audit Accenture (either Client stand alone or common Accenture delivery center) in
accordance with the terms of this ARTICLE XIX.

	19.2	 	Financial Audits.

	 	(a)	 	In order to document the Services and the Service Charges paid or payable by
Client under this Agreement, Accenture will retain receipts for any expense amounts of
$25 or more which are submitted to the Client for reimbursement pursuant to Section
10.3 and supporting documentation for at least three years.
	 
	 	(b)	 	Subject to the provisions of Section 19.3, Accenture will provide to
such auditors as Client may designate in writing, access to such records and supporting

48

 

	 	 	 	documentation as may be reasonably requested by Client. Client may audit the Service
Charges charged to Client to determine that such Service Charges are accurate and were
calculated in accordance with this Agreement.
	 
	 	(c)	 	Any such audits will be conducted at Client’s expense; provided, however, that
if, as a result of such audit, Client determines that Accenture has overcharged Client,
Client will notify Accenture of the amount of such overcharge and Accenture will
promptly pay to Client the amount of the overcharge. If the audit reveals an
undercharge, Client will promptly pay to Accenture the amount of the undercharge, minus
the out-of-pocket costs and expenses incurred for such audit.

	19.3	 	General Principles Regarding Audits.

	 	(a)	 	Client and its auditors will use commercially reasonable efforts to conduct
such audits in a manner that will result in a minimum of inconvenience and disruption
to Accenture’s business operations. Audits may be conducted only during normal
business hours and, except with respect to audits conducted in connection with Client’s
regulatory requirements, no more frequently than annually unless material issues are
discovered. Client and its auditors will not be entitled to audit: (i) data or
information of other customers or clients of Accenture; (ii) any Accenture proprietary
data including cost information unless such is the basis of a reimbursable or
Pass-Through Expense; or (iii) any other Confidential Information of Accenture that is
not directly relevant for the purposes of the audit. Client will provide Accenture
with reasonable prior written notice of an audit. Accenture will use commercially
reasonable efforts to cooperate in the audit, will make available on a timely basis the
information reasonably required to conduct the audit and will assist the designated
employees of Client or its auditors as reasonably necessary. Any request for
additional assistance will constitute a request for New Services pursuant to
Section 4.2. To the maximum extent possible, audits will be designed and
conducted (in such manner and with such frequency) so as not to interfere with the
provision of the Services. All information learned or exchanged in connection with the
conduct of an audit, as well as the results of any audit, constitutes Confidential
Information of Client and Accenture and will be subject to Section 13.1.
	 
	 	(b)	 	Client will not use any competitors of Accenture (or any significant Accenture
subcontractor under this Agreement) in the outsourcing industry to conduct such audits.
As of the Effective Date, such competitors of Accenture are listed on Appendix C.
Upon the request of Client, Accenture will promptly prepare and provide Client with an
updated list.
	 
	 	(c)	 	The auditors and other representatives of Client will execute and deliver such
confidentiality and non-disclosure agreements and comply with such security and
confidentiality requirements as Accenture may reasonably request in connection with
such audits.

	19.4	 	Audit Conferences.

49

 

	 	(a)	 	Following any audit or examination, Client will conduct (in the case of an
internal audit), or request its external auditors or examiners to conduct, an exit
conference with Accenture to obtain factual concurrence with issues identified in
the review and provide Accenture a copy of the audit report.
	 
	 	(b)	 	The Parties will meet to review each audit report promptly after the issuance
thereof and mutually agree upon the appropriate manner, if any, in which to respond to
the changes suggested by the audit report. Accenture will respond promptly to audit
reports in writing, but in no event more than 30 days from receipt of each report.

ARTICLE XX

FORCE MAJEURE

	20.1	 	Force Majeure Events.

	 	(a)	 	Except with respect to disaster recovery or similar obligations (to the extent
provided in a Services Agreement), each Party will be excused from performance under
this Agreement and any applicable Services Agreement(s) (other than obligations to make
payments that have become due and payable pursuant to this Agreement or the applicable
Services Agreement) for any period and to the extent that it is prevented from
performing any obligations pursuant to this Agreement or applicable Services Agreement,
in whole or in part, as a result of a Force Majeure Event. If either Party is
prevented from, or delayed in performing any of its obligations under this Agreement or
applicable Services Agreement by a Force Majeure Event, it will promptly notify the
other Party by telephone (to be confirmed in writing within five days of the inception
of the delay) of the occurrence of a Force Majeure Event and describe, in reasonable
detail, the circumstances constituting the Force Majeure Event and of the obligations,
the performance of which are thereby delayed or prevented. Such Party will continue to
use commercially reasonable efforts to recommence performance whenever and whatever
extent possible without delay.
	 
	 	(b)	 	A “Force Majeure Event” will mean the occurrence of an event or circumstance
beyond the reasonable control of a Party, provided that (i) the non-performing Party is
without fault in causing or failing to prevent such occurrence and (ii) such occurrence
cannot be circumvented by reasonable precautions and could not have been circumvented
through the use of commercially reasonable alternative sources, workaround plans or
other means. “Force Majeure Events” will include, without limitation, (i) explosions,
fires, flood, earthquakes, catastrophic weather conditions, diseases or other elements
of nature or acts of God, (ii) acts of war (declared and undeclared), insurrection,
riot, civil disturbance or disorders, rebellion, sabotage, government regulations or
government directive, embargoes, terrorist attacks, or explosions (each an event of
“Political Instability”) (iii) acts of federal, state, local or foreign governmental
authorities or courts, (iv) labor disputes, lockouts, strikes or other industrial
action, whether direct or indirect and whether lawful or unlawful, (v) failures or

50

 

	 	 	 	fluctuations in electrical power or telecommunications service or equipment and (vi)
delays or failures caused by the other Party or the other Party’s performance
or third-party nonperformance (except that a Party will not be excused for delays or
failures caused by such Party’s subcontractors or agents unless the event or
circumstance is a Force Majeure as to such subcontractor or agent).
	 
	 	(c)	 	With respect to any Accenture off-shore facilities used to perform Services
hereunder, if, as a result of Political Instability, government directive or Force
Majeure Event, in the reasonable discretion of Accenture, there exists an unacceptable
risk to its personnel or to any Accenture Service Location providing Services to Client
Accenture may notify Client of such event. In the event that Accenture so notifies
Client, Accenture and Client shall discuss the feasibility of continuing the affected
Services at other Accenture premises not affected by the event of Political Instability
or Force Majeure Event, including the cost related thereto, and either (i) mutually
determine that Accenture shall locate to another site (after having reviewed the
projected costs), in which event Accenture and Client will mutually agree upon, and
share equally in the charges for Accenture’s services in planning, knowledge transfer
and performing other transition activities associated with the change (but not standard
Services provided hereunder, for which Client shall continue to be responsible for) and
will share equally in all associated expenses and specifically identified transition
costs, or (ii) not mutually agree on an alternative site, in which event either party
may terminate the affected Services Agreement for its convenience as provided in such
applicable Services Agreement and Accenture, subject to the provisions herein, shall
provide Client with Termination Assistance Services as specified in an applicable
Services Agreement to the extent reasonably possible, in light of the applicable
Political Instability or Force Majeure Event.

ARTICLE XXI

MISCELLANEOUS

	21.1	 	Client Affiliates. With respect to any Client Affiliates that receive Services from
Accenture for their internal use under this Agreement, Client will (i) retain responsibility
for payment of such Services; (ii) cause such Affiliates to comply with the applicable terms
and conditions of this Agreement (including applicable Services Agreements); and (iii) upon
the request of Accenture from time to time, obtain written assurances from such Affiliates
that such Affiliates will abide by the applicable terms and conditions set forth in this
Agreement.

	21.2	 	Injunctive Relief. Each Party will have the right to seek injunctive or other equitable
relief to address breaches (or attempted breaches) of the obligations of the other Party under
this Agreement.

	21.3	 	(a) Assignment. This Agreement will be binding upon and inure to the benefit of the Parties
and their respective successors and permitted assigns. Neither Party will assign this
Agreement or any part hereof or any benefit or interest therein without the prior written
consent of the other Party; provided, however, that either Party may assign this

51

 

	 	 	Agreement (i)
to any of its Affiliates and (ii) to any entity that acquires all or substantially all of the
assets of such Party or to successor in a merger or acquisition of such Party. In the event of an assignment of this Agreement
pursuant to the previous sentence, the assigning Party will not be released from any of its
liabilities or obligations hereunder. In the event of any permitted assignment of this
Agreement by either Party, the designated assignee will assume, in writing (in form and
substance reasonably satisfactory to the other Party), the rights and obligations of the
assigning Party under this Agreement. This Section 21.3 will not apply to the
subcontracting by Accenture of any portion of the Services in accordance with Section
8.8.

	 	(b)	 	Divestiture. Client shall notify Accenture as soon as practicably possible
regarding any decision by Client to effect a divestiture of any portion of Client’s
business. In the event of a divestiture of a portion of Client’s business and upon
Client’s request, Accenture shall provide the Services, or a portion thereof which may
be comprised solely of Termination Assistance Services, to the acquirer of such
Client’s business in accordance with this Agreement for up to nine months following
such divestiture; provided that, to the extent that Client is not financially obligated
for the provision of such services to the divested entity, Accenture’s performance of
such services shall be expressly subject to receiving payment for the Services monthly
in advance (including reasonable compensation for incremental costs associated with
providing the Services to such divested entity). Notwithstanding the foregoing,
Accenture’s provision of Services to such acquirer shall be expressly subject to the
execution by such acquirer of an agreement containing (i) confidentiality obligations
satisfactory to Accenture and (ii) an express acceptance of the terms and conditions of
this Agreement with respect to any Services provided to such third party. Accenture
may cease providing the Services to such divested entity at any time (i) upon the
failure of such divested entity to make payments in advance in respect of the Services,
or (ii) if good faith negotiations with the acquirer have not commenced within three
months of the divestiture with respect to a separate agreement similar to the Agreement
for Accenture’s provision of Services during such nine-month period. Without
diminishing Accenture’s obligation under this Section 21.3(b), Accenture may
also enter into good faith negotiations with such acquirer to provide Services
following such nine-month period pursuant to a separate agreement entered into by
Accenture and such acquirer. Notwithstanding the foregoing, the terms of this
Section 21.3 shall not be construed to limit Accenture’s rights under
Section 17.4.

	21.4	 	Cooperation; Consents. Each Party will cooperate with the other Party in good faith in the
performance of its respective activities contemplated by this Agreement through, among other
things, making available, as reasonably requested by the other Party, such management
decisions, information, approvals and acceptances in order that the provision of the Services
under this Agreement may be accomplished in a proper, timely and efficient manner. Where
agreement, approval, acceptance or consent of either Party is required by any provision of
this Agreement, such action will not be unreasonably withheld or delayed.

52

 

	21.5	 	Compliance with Laws and Regulations. Notwithstanding any other provision of this Agreement
to the contrary other than Section 7.5, each Party will retain responsibility for its
compliance with all applicable laws and regulations relating to its respective business and
facilities and the provision of services to third parties, including applicable export laws,
regulations and orders. In performing their respective obligations under this Agreement,
neither Party will be required to undertake any activity that would violate any applicable
laws or regulations.

	21.6	 	Relationship of Parties. In connection with this Agreement, each Party is an independent
contractor. Except as expressly provided in this Agreement, Accenture does not undertake to
perform any obligation of Client, whether regulatory or contractual, or to assume any
responsibility for Client’s business or operations. This Agreement establishes and will only
be construed as establishing a contract between unrelated business entities for the provision
and purchase of certain services and does not and will not be deemed to create a joint
venture, partnership, fiduciary or agency relationship between the Parties for any purpose.
In no event will Accenture be deemed to be acting in a fiduciary capacity for Client. With
respect to its own personnel, each Party is independently responsible for all obligations
incumbent upon an employer.

	21.7	 	Notice. Wherever under this Agreement one Party is required or permitted to give notice to
the other Party, such notice will be in writing and will be delivered personally, sent by
facsimile transmission, sent by nationally recognized express courier or sent by certified
mail (return receipt requested). Any such notice will be deemed given when actually received
and will be addressed as follows:

In the case of Client:

Affirmative Insurance Holdings, Inc.

4450 Sojourn Drive, Suite 500

Addison, TX 75001

Attention: Chief Information Officer

Facsimile Number: (708) 233-7013

with a copy (which will not constitute effective notice) to:

Affirmative Insurance Holdings, Inc.

4450 Sojourn Drive, Suite 500

Addison, TX 75001

Attention: General Counsel

Facsimile Number: (972) 728-6491

In the case of Accenture:

Accenture

161 N. Clark Street

Chicago, IL 60601

Attention: Jon G. Walters

Facsimile Number: (312) 652-2798

53

 

with a copy (which will not constitute effective notice) to:

Accenture LLP

Legal & Commercial Group

Attn: Financial Services North America Lead

161 N. Clark Street

Chicago, IL 60601

	 	 	Either Party may change its address for notices upon giving ten days written notice of the
change to the other Party in the manner provided above.
	 
	21.8	 	Severability. If any provision of this Agreement or the application of any such provision to
any Person or circumstance will be declared judicially to be invalid, unenforceable or void,
such decision will not have the effect of invalidating or voiding the remainder of this
Agreement, and it is the intent and agreement of the Parties that this Agreement will be
deemed amended by modifying such provision to the extent necessary to render it valid, legal
and enforceable while preserving its intent or, if such modification is not possible, by
substituting another provision that is legal and enforceable and that achieves the same
objective.
	 
	21.9	 	No Third-Party Beneficiaries. Nothing contained in this Agreement is intended or will be
construed to confer upon any Person (other than the Parties hereto and the Indemnitees
specifically identified in ARTICLE XV) any rights, benefits or remedies of any kind or
character whatsoever, and no Person will be deemed a third-party beneficiary under or by
reason of this Agreement.
	 
	21.10	 	Publicity. All advertising, press releases, public announcements and public disclosures by
either Party relating to this Agreement which includes (i) the other Party’s name, trade
names, trademarks, logos, service marks or trade dress (collectively, “Name”) or (ii) language
from which the connection of such Name may be inferred or implied, will be coordinated with
and subject to approval by both Parties prior to release; provided, however, that (i) either
Party may indicate to third parties that Accenture is providing services to Client and (ii)
Accenture may use Client as a reference.
	 
	21.11	 	Amendment. This Agreement and the Services Agreements may not be modified or amended except
by a written instrument executed by or on behalf of each of the Parties to this Agreement.
	 
	21.12	 	Entire Agreement/Priority. This Agreement (including the applicable Services Agreements and
their respective Schedules and attachments, each of which is incorporated herein by reference)
constitutes the entire agreement between the Parties with respect to the subject matter hereof
and supersedes all prior and contemporaneous agreements and understandings, whether written or
oral, between the Parties with respect to the subject matter hereof. There are
no representations, understandings or agreements relating to this Agreement that are not
fully expressed in this Agreement. In the event of a conflict or ambiguity between the
Agreement and the applicable Services Agreement, the terms of the applicable Services
Agreement will prevail.

54

 

	21.13	 	Governing Law. This Agreement will be governed by and construed in accordance with the
laws, other than choice of law rules, of the State of Illinois. The parties expressly agree to
exclude the application of the U.N. Convention on Contracts for the International Sale of
Goods (1980) to this Agreement and the performance of the parties contemplated under this
Agreement, to the extent that such convention might otherwise be applicable.

	21.14	 	Rules of Construction. The article and section headings and the table of contents contained
in this Agreement are for reference purposes only and will not affect in any way the meaning
or interpretation of this Agreement. As used in this Agreement, unless otherwise provided to
the contrary, (a) all references to days, months or quarters will be deemed references to
calendar days, months or quarters and (b) any reference to a “Section,” “Article,” “Exhibit”
or “Schedule” will be deemed to refer to a section or article of this Agreement or an exhibit
or schedule to this Agreement. Unless the context otherwise requires, as used in this
Agreement, all terms used in the singular will be deemed to refer to the plural as well, and
vice versa. The words “hereof,” “herein” and “hereunder” and words of similar import
referring to this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they will be deemed to be followed by the words “without limitation.”
References in this Agreement to “$” will be deemed a reference to United States dollars unless
otherwise specified.

	21.15	 	Counterparts. This Agreement may be executed in two or more counterparts, each of which
will be deemed to be an original, but all of which together will constitute one agreement
binding on the Parties, notwithstanding that both Parties are not signatories to the original
or the same counterpart.

	21.16	 	Alliance Disclosure. Accenture has alliances with certain third-party products and services
vendors. As part of any such alliance relationship, Accenture may be entitled to receive from
such vendors certain fees or other financial interest. Client acknowledges that Accenture’s
alliance relationships may be beneficial to Accenture in the performance of its Services
hereunder or under any Services Agreement.

          IN WITNESS WHEREOF, this Agreement has been duly executed by and on behalf of the Parties
hereto as of the Effective Date.

	 	 	 	 	 	 	 
	CLIENT	 	 	 	ACCENTURE, LLP
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 

55

 

APPENDIX A

DEFINITIONS

     “Accenture” will have the meaning specified in the preamble of this Agreement and include all
Accenture Affiliates and subcontractors of Accenture or Accenture Affiliates, unless specifically
stated or the context indicates otherwise. However, the use of the term “Accenture” to refer to
Affiliates in separate countries shall not be construed as a requirement for, or evidence of, the
presence or establishment of Accenture or the Affiliate doing business in a jurisdiction other than
where it is domiciled.

     “administrative responsibility” means that such Party shall (x) provide operational support
(including maintenance, deployment of refresh or upgrades) in respect of assets, and (y) manage
contracts and licenses, including tracking renewal dates and license compliance provisions.

     “Affiliate” means any other Person that, directly or indirectly, through one or more
intermediaries, is controlled by or under common control with a Party. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlled by” and “under
common control with”), as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities, by contract or otherwise.

     “Accenture Service Locations” means those locations from which Services will be provided that
are owned, leased or under the control of Accenture, its Affiliates, or subcontractors, initially
as identified in the applicable Services Agreement.

     “Change Control Process” means the process set forth in Section 8.9 for proposing and
approving Contract Changes.

     “Client” will have the meaning specified in the preamble of this Agreement and include all
Client Affiliates and third parties of Client or Client Affiliates, unless specifically stated or
the context indicates otherwise.

     “Client Data” means information regarding Client that is provided by Client to Accenture
pursuant to this Agreement or created by Accenture under or arising out of data and records of
Client pursuant to this Agreement.

     “Client Service Locations” means those locations from which Services will be provided that are
owned, leased or under the control of Client, as identified in the applicable Services Agreement.

     “Contract Changes” means any changes to this Agreement that are within the scope of the
Services. Examples include changes in Service Levels, Client-Provided Hardware, reporting
requirements and applicable laws.

     “Contract Quarter” means the period between October through December; January through March;
April through June; and July through September.

 

 

     “Consents” means consents, waivers, permits, clearances, approvals, rights (including, where
applicable, sub-licenses) and other authorizations.

     “Demobilization Costs” means the costs reasonably incurred by Accenture in connection with
either (i) the redeployment, demobilization and relocation of the applicable Accenture (or
subcontractor) personnel who are then primarily dedicated to providing Services to Client or (ii)
the termination of the applicable Accenture (or subcontractor) personnel (including severance,
out-placement or related costs).

     “financial responsibility” means that such Party shall be responsible for all financial
obligations with respect to the applicable asset, including costs associated with acquisition or
leasing, and refresh and upgrade.

     “FTE” means a person dedicated to the Client account or in the case of nondedicated personnel,
such group of persons whose business time expended in providing Services under this Agreement is,
in the aggregate, approximately equal to the business time expended by one dedicated person.

     “Hardware” will mean computers and related equipment, including, as applicable, central
processing units, personal computers and other processors, controllers, modems, storage devices,
printers, terminals, other peripherals and input and output devices, and other tangible mechanical
and electronic equipment intended for the processing, input, output, storage, manipulation and
retrieval of information and data.

     “Liens” means, with respect to any properties or assets, any mortgage, pledge, claim, charge,
hypothecation, assignment, security interest, lien or encumbrance or any preference, priority or
other right or interest granted pursuant to a security agreement or preferential arrangement of any
kind or character in respect of such properties or assets.

     “Losses” means losses, liabilities, damages, actions, claims, costs and expenses (including
reasonable attorneys’ fees and disbursements).

     “Person” means any corporation, joint stock company, limited liability company, association,
partnership, joint venture, organization, individual, business or other trust or any other entity
or organization of any kind or character, including a court or other governmental authority.

     “Services Agreement” means an executed agreement between the parties that sets forth specific
scope of services to be provided in accordance with and pursuant to the terms and conditions of the
Agreement. The Services Agreement(s) shall contain detailed information related to specific
service offerings, including but not limited to price, deliverables, acceptance criteria, term,
Service Levels, minimum purchase commitments, and other terms and conditions specific to the scope
of services being provided under such Services Agreement. For avoidance of doubt, while there may
be multiple Services Agreements in effect at the same time under the Agreement, each such Services
Agreement shall be separate and standalone, and have no impact or consequence on any other Services
Agreement under this Agreement. In the event of a conflict between a Services Agreement and the
Agreement, the Services Agreement shall take

 

 

precedence and govern and control such conflict but only as it relates to such Services Agreement.

     “Stranded Costs” means (i) any unrecouped investments, costs or obligations, or the
unrecovered portion of any amortized charges for such investments, costs or obligations, for any
hardware, software or third-party service agreements primarily dedicated to providing Services to
Client which have been made, incurred or assumed by Accenture in good faith in reasonable
expectation of providing Services requested by Client pursuant to this Agreement (including
obligations under unexpired lease, license or other agreements for hardware, software, third-party
services or subcontracts) and (ii) any amount of accrued and unbilled revenue for Services provided
under this Agreement.

     “Work Product” means the specifications, design documents, flow charts, software programs
(including Developed Applications), documentation, reports and other similar work product that
Accenture develops specifically for Client pursuant to this Agreement; provided, however, that Work
Product will not include any Accenture Software.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]