Document:

Exhibit 10.1

INTEGRATED ELIGIBILITY AND ENROLLMENT SERVICES

SUBCONTRACT AGREEMENT

THIS SUBCONTRACT AGREEMENT (this “Agreement” or “Subcontract”) is
entered into as of June 25, 2005 (the “Effective Date”), by and between
Accenture LLP, an Illinois partnership with an office at 1501 South MoPac
Expressway, Suite 300, Austin, Texas 78746 (“Accenture”) and MAXIMUS, Inc,
a Virginia corporation with its principal office at 11419 Sunset Hills Road,
Reston, VA 20190 (“MAXIMUS”).

WHEREAS, the
Texas Health and Human Services Commission (the “State”) issued a Request for
Proposal (the “RFP”) on July 22, 2004, entitled Request for Proposals for
Integrated Eligibility and Enrollment Services, soliciting a qualified vendor
to provide services for the implementation and operation of integrated
eligibility (“IE”) and enrollment broker (“EB”) services for State health and
human services programs (the “Project”); and

WHEREAS, in
anticipation of creating a response to the RFP, Accenture and MAXIMUS have
previously agreed via a “Teaming Agreement” executed between the parties on August 9,
2004, to work together on a response to the RFP; and

WHEREAS, as
contemplated by the Teaming Agreement, Accenture and MAXIMUS prepared a
response to the RFP which provides that, in the event the Project is awarded to
Accenture, various Project products and services will be provided to the State
by MAXIMUS as a subcontractor to Accenture (such response, together with all
clarifications and modifications thereto, as submitted to the State, to be collectively
referred to herein as the “Proposal” or “RFP Proposal”); and

WHEREAS, the
State has selected the RFP Proposal as the proposal that represents the best
value for the State, and Accenture and the State have negotiated the terms of
an agreement to govern the performance of the Project by Accenture and MAXIMUS
in accordance with such agreement, including but not limited to the Proposal
and the RFP (collectively, the “Prime Contract”); and

WHEREAS, the
parties desire to define the terms and conditions on which MAXIMUS shall act as
a subcontractor to Accenture in connection with the Project.

NOW, THEREFORE,
in consideration of the premises and of the promises exchanged herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Accenture and MAXIMUS agree as follows:

ARTICLE
1 — GENERAL

1.1                                 By its terms, the Teaming Agreement will
terminate upon execution of this Agreement. The parties agree that the Teaming
Agreement may be utilized by the parties as a guide in interpreting this
Agreement; provided that, to the extent there is any inconsistency between the
terms of the Teaming Agreement and the terms of this Agreement, the terms of
this Agreement shall govern.

1.2                                 It is the parties’ intent that MAXIMUS shall
take all reasonable steps within the scope of this Agreement to enable
Accenture to comply with the terms of the Prime Contract. MAXIMUS shall comply
with the provisions of the Prime Contract and all work done and/or deliverable
items shall be produced and performed by MAXIMUS and all of its subcontractors
strictly in accordance with the provisions of the Prime Contract. Unless
otherwise noted in the body of this 

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                                                Agreement, the provisions of the Prime
Contract, attached hereto as Exhibit 1.2, are incorporated into
this Agreement by reference in their entirety and are applicable to this
Agreement as written to the extent necessary to enable Accenture to fulfill its
obligations under the Prime Contract. These incorporated Prime Contract clauses
are in addition to the other clauses, terms, and conditions specifically set
forth in this Agreement. For the avoidance of doubt, if a provision of this
Agreement is in conflict with a provision of the Prime Contract, the Prime
Contract provision shall prevail.

1.3                                 Capitalized terms used in this Agreement and
not otherwise defined in this Agreement or any Exhibit to this Agreement
shall have the meanings ascribed to them in the Prime Contract. Whenever
necessary to make the context of the incorporated clauses applicable to this
Agreement, unless stated otherwise, the term “Contractor” shall mean MAXIMUS,
the term “Contract” or “Exhibit” shall mean the Subcontract, and the term “State”
or “HHSC” or equivalent phrases shall mean Accenture.

ARTICLE
2 — ROLES AND RESPONSIBILITIES OF THE PARTIES; SCOPE OF WORK 

2.1                                 During the term of this Agreement, MAXIMUS
shall coordinate and work with Accenture, at the direction of Accenture, in
accordance with the scope of work set forth in Exhibit 2.1 to
ensure an appropriate interaction between the work of Accenture and MAXIMUS and
to enable Accenture to meets its obligations under the Prime Contract.

2.2                                 The parties agree that the parties’
responsibilities for operations work efforts in connection with the Project are
identified in Exhibit 2.2 which documents primary responsibility
for each RFP requirement area. In areas where there is joint responsibility,
the specific roles of the parties are described. MAXIMUS shall provide the
specific products and services set out as its primary and joint
responsibilities in accordance with the terms of this Agreement.

2.3                                 Additional MAXIMUS Roles and Responsibilities.
Consistent with the terms and conditions of this Agreement, MAXIMUS shall
provide the following additional Deliverables and Services:

2.3.1                        Support, at Accenture’s reasonable direction
in accordance with the Transition Plan, the transition of IEE Services to
Accenture without disrupting on-going EB or CHIP service. During the Transition
Period, MAXIMUS shall also assist Accenture in the development of a framework
for on-going service delivery. The results of the transition will be
well-defined and documented processes for service delivery that yield an
environment supportive of quality management techniques. A high-level overview
of the activities that MAXIMUS shall support, at Accenture’s reasonable
direction, during the Transition phase of the Project is set forth in Exhibit 2.3.1.

2.3.2                        Participate in the integration of MAXe and
TIERS software as described in Exhibit 2.3.2. Accenture shall have
the right to review and approve MAXIMUS work plans, designs, work product, and
status upon request and the right to co-locate Accenture personnel with the
MAXIMUS team delivering this work.

2.3.3                        Build MAXe data entry and workflow functions
into TIERS as per MAXIMUS’s commitment to the State set forth in Schedule 6 and
Attachment B in the Prime Contract. Accenture shall have the right to review
and approve MAXIMUS work plans, designs, work product, and status upon request
and the right to co-locate Accenture personnel with the MAXIMUS team delivering
this work.

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2.3.4                        Support Accenture in changing the IEE
processes of the State through the infusion of practices, methodologies, and
techniques to foster increases in productivity.

2.3.5                        Support Accenture in prioritizing,
scheduling, and delivering IEE Services.

2.3.6                        Recruit, train, and retain personnel with the
necessary skills sets required to effectively provide services to the State.

2.3.7                        Support and enhance MAXIMUS-provided software
to enable IEE Services.

2.3.8                        Coordinate all releases of MAXIMUS-provided
software under Accenture’s software testing and release schedule.

2.3.9                        Work with Accenture to create management and
reporting processes that facilitate performance evaluation, auditing and
reporting.

2.3.10                  Operate the IE and EB services for which it
is responsible in accordance with the provisions of the Prime Contract.

2.3.11                  As required by the Prime Contract, provide
Accenture with progress reports in a form acceptable to Accenture and the State
that details MAXIMUS’s performance of the Services and provision of
Deliverables.

2.3.12                  Include terms and conditions in its
subcontracts with all subcontractors, consultants, and agents, which
substantially reflect contractual rights and obligations consistent with
Accenture’s rights and obligations under the Prime Contract.

2.3.13                  Provide further services as clarified in Exhibit 2.3.13.

2.4                 Additional Accenture Roles and
Responsibilities.

Consistent with the terms
and conditions of this Agreement, Accenture shall be responsible for the
management of Services to be performed under the Subcontract. Specifically,
Accenture shall be responsible for the following tasks:

2.4.1                        Leadership and Management

2.4.1.1                                  Work with the State to establish and refine
Key Performance Requirements (“KPRs”), Service Level Agreements (“SLAs”),
Performance Standards and Liquidated Damages (“LDs”) with respect to the
Services;

2.4.1.2                                  Provide direction and guidance, as necessary,
to MAXIMUS regarding the provision of specific Services required to meet the
requirements of the Prime Contract;

2.4.1.3                                  Review and approve MAXIMUS-provided services,
deliverables and service level reports;

2.4.1.4                                  Work with MAXIMUS to identify, quantify, and
implement opportunities for cost reductions; and

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2.4.1.5                                  Identify opportunities to revise existing
processes with the objective of achieving productivity increases.

2.4.2                        Application Management

2.4.2.1                                  Provide direction, guidance and coordination,
as necessary, to MAXIMUS regarding services required to support, modify or
enhance software applications provided by MAXIMUS;

2.4.2.2                                  Coordinate and schedule releases of new
application capability; and

2.4.2.3                                  Manage application migration to various
environments including deployment to production releases of code at scheduled
time frames.

2.4.3                        TIERS Support and Modifications

2.4.3.1                                  Modify the Texas Integrated Eligibility Redesign System (“TIERS”) code
to support SOA capabilities sufficient for the initial IE deployment;

2.4.3.2                                  Develop and maintain interfaces between TIERS and external systems; and

2.4.3.3                                  Develop and deploy a web portal and related applications to support
self-serve web applications.

2.4.4        TIERS Operations

2.4.4.1                                  Operate TIERS within the range of performance
standards set forth in KPRs 79 and 86, as such may be amended from time to
time; provided, however, that both parties shall be jointly responsible for
TIERS performance during the period beginning with the implementation of the
functions described in Section 2.5.3 below and ending with
Accenture’s Acceptance of those functions (i.e., either 60 days after
implementation of the functions or 30 days after the functions have been proven
to conform to the KPRs, whichever is later).

2.4.4.2                                  Subject to the foregoing, if Accenture fails
to meet performance standards set forth in Section 2.4.4.1, and
that failure causes or materially contributes to significant MAXIMUS
productivity deficiencies that result in MAXIMUS’s failure to achieve the work
standards (to be provided at Accenture’s request) that form the basis of its
variable transaction rates, the following steps shall be taken:

2.4.4.2.1                              Accenture shall use commercially reasonable
efforts to cure the failure.

2.4.4.2.2                              If the failure cannot be cured, the parties
shall jointly seek and implement other measures (e.g., process changes or
workflow changes) to increase MAXIMUS productivity. MAXIMUS shall not
unreasonably refuse to make such changes.

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2.4.4.2.3                              If efforts under Sections 2.4.4.2.1 and
2.4.4.2.2 are exhausted and significant MAXIMUS productivity deficiencies
remain, then Accenture, at Accenture’s exclusive option, shall either relieve
MAXIMUS of responsibility for KPRs impacted by the deficiencies or take
financial responsibility for increased MAXIMUS capacity to meet the KPRs,
either of which shall be in proportion to the contribution of Accenture’s
failure among all causes of the productivity deficiencies.

2.4.4.3                                  MAXIMUS agrees that with respect to those
components of TIERS implemented by MAXIMUS during the period for which both
parties are responsible for TIERS performance as described in Section 2.4.4.1
above (a) it is responsible for performance of those components that may
impact Key Performance Requirements, (b) it will work with Accenture
through the Change Management process to remedy any defect in TIERS performance
and (c) the remedies set forth in Section 2.4.4.2 shall not be
available to it.

2.5                                 Financial Responsibility

2.5.1                        MAXIMUS shall be financially responsible for
all personnel and personnel-related costs required to execute the roles and
responsibilities for which it is responsible under this Agreement, whether
provided by MAXIMUS employees or subcontractors, and regardless of transaction
volumes.

2.5.2                        Accenture or the State shall be financially responsible for facilities,
telecommunications, LAN/WAN, and desktop computing costs (including hardware
and software costs) required to support headcount as set forth in Exhibit 2.5.3.
If actual transaction volumes processed by MAXIMUS exceed the volumes
quantified in Schedule 8 of the Prime Contract, Accenture shall also be
financially responsible for facilities, telecommunications, LAN/WAN and desktop
computing costs related to increases in headcount of MAXIMUS and its
Subcontractors above those set forth in Exhibit 2.5.3 that are
directly proportional to increases in actual transaction volumes above the
transaction volumes processed by MAXIMUS quantified in Schedule 8 of the Prime
Contract. On a monthly basis, MAXIMUS shall provide Accenture a 12 month
forecast of anticipated processing volumes and headcount requirements.

2.5.3                        Subject to Section 2.4.4, MAXIMUS
shall be financially responsible for all facilities, telecommunications,
LAN/WAN, and desktop computing costs beyond those described in Section 2.5.2
required for MAXIMUS and its Subcontractors to satisfy Key Performance
Requirements.

2.5.4                        If Accenture fails to satisfy the obligations
set forth in Section 2.5.2 and that failure causes or materially
contributes to MAXIMUS’s failure to achieve its work standards as agreed to by
Accenture, the provisions of Section 2.4.4.2.1, Section 2.4.4.2.2
and Section 2.4.4.2.3 shall apply.

2.5.5                        MAXIMUS shall be financially responsible for
any increases in hardware/software, and or hosting services required to operate
the MAXe software.

2.5.6                        MAXIMUS shall be financially responsible for
building MAXe data entry and workflow functions into TIERS as set forth in Section 2.3.3.

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2.5.7                        The parties acknowledge that
opportunities for operational cost reduction may require one party to invest to
provide operational cost reduction for the other party. The parties agree to
determine suitable approaches to share investments or share operational cost
reductions in order to promote a more efficient operation.

2.6           Work Statements

2.6.1                        To the extent required under a Work Plan or
otherwise as mutually agreed upon by the parties, MAXIMUS and Accenture shall
draft mutually agreed upon work statements, which shall be attached hereto and
incorporated herein. Each work statement shall detail the technical services to
be performed by MAXIMUS, the
service levels to which those services are to be performed, and the price of
the services. MAXIMUS will make good faith efforts to identify and assign
MAXIMUS  employees who (i) have the
technical and professional skills required by Accenture, (ii) are able to
provide the kinds of services desired by Accenture, and (iii) if
specifically set forth on the relevant work statement, who can provide such
services for the term desired by Accenture.

2.6.2                        Accenture may terminate any work statement
upon 30 days’ written notice to MAXIMUS if the State terminates the Prime
Contract in whole or in part with respect to the services contained in the Work
Statement(s); provided, however, should termination be based on good cause,
Accenture may terminate the corresponding work statement(s) upon written
notice to MAXIMUS in accordance with the terms of this Agreement. Such notice
shall include a reason for the termination of the work statement by Accenture. Accenture
shall have the same rights of termination in the event that MAXIMUS provides
resources without a work statement (e.g., during the initial transition
period).

2.7                                 Additional Scope

2.7.1                        From time to time, the parties may agree to
expand the scope of this Agreement by adding additional tasks and
responsibilities to this Subcontract. Such expansion of scope may arise through
recommendations of the State, MAXIMUS or Accenture, and all such expansions
shall be reflected in a written agreement of the parties. Accenture and MAXIMUS
will negotiate a mutually acceptable allocation of responsibility for providing
additional services consistent with their then-current roles and
responsibilities. In the event such additional services go beyond the parties’
then-current roles and responsibilities, Accenture and MAXIMUS will negotiate a
mutually acceptable allocation of responsibility for providing such services,
taking into consideration the parties’ respective capabilities and resources
and consistent with the existing division of work and revenues. Should the
additional services require new personnel to be assigned to this Subcontract,
Accenture reserves the right to (a) determine if such personnel should be
considered “key personnel” and (b) if so, approve or reject the addition
of such personnel to the Subcontract.

2.8                                 Change Orders

2.8.1                        The Prime Contract shall control the parties’
respective rights and obligations regarding change orders, with the additional
requirements that MAXIMUS will take all reasonable steps necessary for
Accenture to comply with any time limitations imposed on Accenture by the State
regarding submissions of change order requests or similar notifications. MAXIMUS
further agrees that Accenture reserves the right to delay or reduce the scope 

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                                                of MAXIMUS’s Services or Deliverables if the
State makes a corresponding delay or reduction in scope of such Services or
Deliverables in the Prime Contract; provided that Accenture agrees that to the
extent MAXIMUS’s Services or Deliverables are affected by any delay or
reduction in scope proposed by the State, Accenture will solicit MAXIMUS’s
participation in discussions with the State regarding same.

2.9                                 Subcontract Performance Review

2.9.1                        During the first year of Subcontract
performance, the parties shall meet on a monthly basis to review MAXIMUS’s
performance under the Subcontract. Should adjustments to the Subcontract’s
terms be required as a result of these performance reviews, MAXIMUS and
Accenture agree to work together in good faith to amend the Subcontract as
appropriate. After the first year of Subcontract performance, the parties shall
meet not less than quarterly to perform the same type of review and adjustment,
as appropriate, of Subcontract performance. At Accenture’s discretion, the
State may be invited and permitted to participate in such reviews.

ARTICLE 3 — GOVERNANCE

3.1                                 The parties acknowledge that open, honest,
transparent, complete, and prompt communication is expected from both parties
in connection with the Project and is critical to the success of the team.

3.2                                 In order to draw on the strengths of each
party in an effort to achieve quality services done right the first time,
within budget and on schedule and to help prevent disagreements and differences
from developing into formidable conflicts and disputes, MAXIMUS and Accenture
agree that the following governance principles will apply to each party’s
performance under this Agreement:

·                       Verifying that services and deliverables comply with all applicable
laws and regulations;

·                       Making timely review and business decisions;

·                       Effectively communicating and providing information promptly;

·                       Maintaining quality control and confirming quality services;

·                       Cooperating and being courteous, respectful, and honest with each
other; and

·                       Each forming a management team that will be responsible for overseeing
the effective implementation of this Subcontract.

3.3                                 In order for efficient and effective
communication to occur, the parties acknowledge that clear lines of authority
and areas of responsibility are required to be identified for Accenture and
MAXIMUS. Accordingly, each party will designate an Account Executive during the
term of the Subcontract whose responsibility shall be to oversee the party’s
performance of its duties and obligations pursuant to the terms of the
Subcontract.

3.4                                 Within 14 days of the Effective Date, the
parties shall establish a Project Management Committee that will be responsible
for overseeing the performance of this Agreement. MAXIMUS will be represented
at all times by at least one member on the Project Management Committee, which 

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                                                will include the senior executives for each
segment of the organization and will be the first point of escalation for
project decisions and issues.

3.5                                 Within 14 days of the Effective Date, MAXIMUS
and Accenture will organize an Executive Committee to oversee the Project and
to resolve any issues with corporate impact on the organizations. The MAXIMUS
CEO and the Accenture Government CEO will lead the Executive Committee.

3.6                                 MAXIMUS will use the Project’s standard
issue/risk methodology and tools as described in the Proposal as the exclusive
means for documenting and escalating risks and issues.

3.7                                 To the extent permitted by the State, MAXIMUS
will be represented on any joint Accenture/State steering committees that
govern MAXIMUS scope of work, and Accenture will permit MAXIMUS to participate
in other meetings and discussions with the State that affect MAXIMUS’
performance or areas of responsibility. MAXIMUS will not have independent
discussions with the State concerning policy issues or the Project without the
advance approval of Accenture. Notwithstanding the foregoing, the parties
recognize that MAXIMUS may need to interact directly with the State on
technical and day-to-day operational matters. In such cases, MAXIMUS will
report promptly to Accenture any State discussions or issues that may have a
significant impact on the Services.

ARTICLE 4 — STANDARD
MANAGEMENT PROCEDURES 

4.1                                 MAXIMUS shall adhere to Accenture’s work
planning and status reporting procedures, including recording all work-plan
information, accurate estimates to complete, and issues into ITG tools.

4.2                                 MAXIMUS shall provide human resource and
finance data in a form suitable for input into the project human resource and
finance software.

4.3                                 MAXIMUS and Accenture shall coordinate their
Project QA processes to foster transparency and to minimize demands on
operations personnel.

4.4                                 MAXIMUS and Accenture shall both provide
representatives for and regularly attend standing meetings such as Change
Control Board meetings.

4.5                                 Decisions in areas related to or impacting
MAXIMUS will be made in consultation with the appropriate MAXIMUS management
personnel. MAXIMUS will participate in project meetings and discussions as
required by the Accenture Account Executive or when the meeting or discussion
addresses areas involving MAXIMUS’s work under this Agreement.

4.6                                 MAXIMUS will discuss all issues,
recommendations and decisions related to service performance, status, or any
major issue affecting the Services with the Accenture Account Executive or
other authorized designee prior to joint Accenture and MAXIMUS discussion with
the State.

ARTICLE 5 — PERSONNEL

5.1                                 MAXIMUS and Accenture agree not to offer
employment, nor accept for employment, each other’s employees who are directly
associated with the work covered by this Subcontract for a period beginning on
the Effective Date and extending for one (1) year after the termination or
expiration of this Agreement or any extension, without the written consent of
the other party.

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5.2                                 Employment of State Workers.

5.2.1                        MAXIMUS will not knowingly recruit, employ, subcontract with, or
sub-grant to any person who is employed by the State and who has (a) participated
in the procurement of the Prime Contract, (b) worked on projects relating
to the subject matter of the Prime Contract, or (c) have had any influence
on decisions affecting the subject matter of the Prime Contract, during the
term of this Agreement and for two (2) years following the expiration or
termination of the Prime Contract.

5.2.2                        MAXIMUS understands and acknowledges that
State employees may be covered by collective bargaining agreements with one or
more labor unions and that any such agreements may establish employment
requirements and conditions, including wage and work-rule requirements,
for the employees. Accenture shall have no responsibility to bargain with any
such labor unions and shall have no responsibility under any such collective
bargaining agreements for the employees covered thereby. Rather, MAXIMUS will
be responsible for bargaining with any applicable labor union and will be
solely responsible for evaluating and complying, if applicable to MAXIMUS, with
all relevant terms of collective bargaining agreements that cover State employees,
consistent with state and federal laws, such that performance of this Agreement
and the Prime Contract will not be endangered or impaired.

5.2.3                        MAXIMUS will defend, indemnify, and hold
Accenture harmless against any grievances arising under a labor contract filed
by a former State employee or such employee’s collective bargaining agent and
arising out of the employment relationship between MAXIMUS and such employees
or any collective bargaining agreement then in effect between MAXIMUS and such
collective bargaining agent.

5.3                                 MAXIMUS shall coordinate all recruiting
messages and activities related to this Agreement with Accenture, including
participation at career fairs, use of third party recruiters, marketing, and
media messages.

5.4           Key Personnel.

5.4.1                        MAXIMUS agrees that certain MAXIMUS personnel
are essential to the effective performance of the Subcontract. Accordingly,
MAXIMUS agrees that the MAXIMUS employees identified in Exhibit 5.4.1
shall be deemed “Key Personnel” for purposes of this Agreement. Key Personnel
shall work exclusively on the services contemplated by this Subcontract and
shall not be replaced, re-assigned, or diverted to other MAXIMUS projects
without the prior written consent of Accenture. Such consent shall not be
unreasonably withheld or delayed; however, MAXIMUS shall provide Accenture with
30 days notice, in writing, prior to any proposed change in key personnel,
along with a justification (or the proposed substituted personnel with equal or
greater qualifications) that is sufficiently detailed to allow Accenture to
evaluate the impact of the proposed change on Subcontract performance. Accenture’s
consent to a change in Key Personnel is not required if such Key Personnel (i) resigns
from MAXIMUS or takes at least a six-month leave of absence (including any
absence permitted by the Family and Medical Leave Act or other law or
regulation); (ii) is dismissed by MAXIMUS for cause; or (iii) dies or
is unable to work due to his or her disability.

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5.4.2                        Accenture will have the right to reject any
proposed replacement Key Personnel, which rejection shall not be unreasonably
made. In addition, at any time after the first six months of MAXIMUS
performance, upon notice, Accenture will have the right to request replacement
of Key Personnel on the Subcontract if such replacement would not, in Accenture’s
judgment hinder performance of the subcontract. Such requests shall not be
unreasonably denied. Accenture will provide written approval of any replacement
Key Personnel.

5.4.3                        The list of Key Personnel may be modified, by written agreement of the
parties, from time to time during Subcontract performance to add or delete
personnel from the list as appropriate.

5.5                                 MAXIMUS shall provide the training and
certification set forth in Exhibit 5.5 attached hereto, as such may
be amended form time to time, to all of its employees engaged in the Project.

5.6                                 MAXIMUS shall adhere to the Code of Ethics
attached hereto as Exhibit 5.6 in the control and management of its
employees. MAXIMUS shall provide Accenture 30 days notice of any changes to Exhibit 5.6
and shall permit Accenture to comment on any such changes, if in Accenture’s
reasonable judgment, such changes will have a negative impact on the provision
of the services by MAXIMUS under this Agreement.

5.7                                 Neither MAXIMUS nor Accenture will be deemed
a joint employer of the other’s employees, and each party will be responsible
for governing the essential terms and conditions of employment of its own
employees, including such matters as hiring, firing, disciplining, day-to-day
supervision, and direction of employees. Each party shall be responsible for
any and all claims by its employees. Neither party’s employees shall be deemed “leased”
employees of the other for any purpose.

5.8                                 Either party may provide performance input to
the other regarding employees’ performance which will be duly considered in the
employee’s performance reviews, evaluation, and compensation. Accenture may
request re-assignment of MAXIMUS employees with chronic or gross
underperformance.

5.9                                 Except
as otherwise provided in this Agreement or as mutually agreed in writing by the
parties, MAXIMUS shall have the exclusive right to manage all MAXIMUS resources
used in providing the Services as MAXIMUS deems appropriate. Notwithstanding
the provisions of the foregoing sentence, if MAXIMUS contemplates any
relocation, substitution, or change in resources that would materially affect
Accenture or the Key Personnel (a “Material Alteration of Resources”), then
MAXIMUS shall provide Accenture with prior written notice thereof. Upon receipt
of such notice, if Accenture determines in its reasonable judgment that such
alteration would result in a material change in the pricing terms of this
Subcontract or would endanger or impair performance of the Subcontract,
Accenture shall approve or disapprove of the proposed alteration in writing. Any
proposed relocation of Key Personnel outside the State of Texas by MAXIMUS
shall be deemed a Material Alteration of Resources and shall require the prior
written consent of both Accenture and the State. Any relocation, substitution,
or change that will result in a change in the pricing terms of this Agreement
in excess of $25,000.00 shall be deemed a Material Alteration of Resources. Any
assets owned by Accenture or the State (including any assets substituted by
MAXIMUS) under the control of or in the possession of the MAXIMUS upon
termination of this Subcontract shall be promptly returned by MAXIMUS to
Accenture or the State. MAXIMUS shall maintain all such assets, including
perpetual licenses, under its management or control until such time as those
assets are returned to Accenture or the State.

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ARTICLE 6 — KEY
PERFORMANCE REQUIREMENTS

6.1                                 MAXIMUS and Accenture will be responsible for
the KPRs and associated LDs as identified in Exhibit 6.1 which
documents primary responsibility for each KPR. In areas where one party has
primary responsibility, the other may also have responsibility to the extent
that it is required to participate in or contribute to the activities that
satisfy the KPR. The parties will conduct a formal root cause analysis to
identify the cause of any failures and, in cases where there is joint
responsibility, the result of that root cause analysis will form the basis for
apportioning responsibility for LDs. Earnback credits will be applied under a
scheme to be mutually developed and agreed by the parties subject to the
following principles:

6.1.1                        Within a given assessment period: If there
are sufficient earnback credits available under the Prime Contract to offset
all failures, those earnback credits shall be used to offset all Liquidated
Damages. If there are insufficient earnback credits available under the Prime
Contract to cover all failures, earnback credits shall first be applied to
offset failures against KPRs under which the parties have had no failures and
consistently accrued earnback credits over the 12 months prior to the
assessment period, and shall second be prorated across remaining KPR failures
proportional to the Liquidated Damages assessed.

6.1.2                        In the event either party’s failure on KPRs
defined as A+ keeps Accenture from earning credits under the Prime Contract,
there shall be a “true-up” of resulting liquidated damages incurred for lack of
those credits.

6.2                                 MAXIMUS will provide Accenture with mutually
agreed upon data and reports, in a manner Accenture may reasonably require or
as required by the State, at prescribed intervals that represent the service
levels provided by MAXIMUS operations. The reports will serve as the basis for
measuring MAXIMUS’s compliance with service levels and KPRs and the terms of
this Agreement.

6.3                                 The following general considerations shall apply to Service
Levels and KPRs:

6.3.1                        Tools and Methods. In accordance with the requirements of the
applicable workplan, MAXIMUS shall implement the measurement and monitoring
tools and procedures described in the Proposal to measure and report on MAXIMUS’s
performance of its obligations under this Agreement to Accenture on a mutually
agreed upon cycle and in accordance with the terms of the Prime Contract.

6.3.2                        Performance Evaluation Period. The service delivery and
pricing framework for the Services is predicated on a model that supports the
delivery of the same or higher level of services than those currently being achieved
by the State. In accordance with the requirements of the applicable workplan,
MAXIMUS and Accenture will cooperate with each other in collecting historical
data on the actual performance achieved by the State, and will focus on
identifying and documenting the necessary trending data, implementing a data
gathering process, consolidating and correlating the captured historical data,
and identifying trends to substantiate Performance Standards (i.e., Service
Levels) prior to transition to Accenture to establish a baseline for service
level performance. MAXIMUS will support Accenture by using all commercially
reasonable efforts to maintain service 

 11
 

 

                                                levels that meet or exceed this baseline, and that meet or
exceed the Key Performance Requirements of the Prime Contract.

6.4                                 MAXIMUS’s duty to use all commercially
reasonable efforts to assist Accenture to meet the service levels, performance
standards and KPRs, as set forth in the Prime Contract and pertaining to
MAXIMUS’ responsibilities, will be a material obligation of this Agreement.

ARTICLE
7 — PAYMENT / INVOICING AND TAXES

7.1                                 MAXIMUS will maintain records and receipts
relating to expenses incurred in connection with the Services and shall provide
Accenture access to such records upon request during normal business hours.

7.2                                 Except for the service charges set forth in Exhibit 7.2,
as such may be amended from time to time by Change Orders or other amendments,
MAXIMUS will not be entitled to any other compensation for its services. Moreover,
it is expressly understood that MAXIMUS will have no interest in or claim to
any billings by Accenture to its clients for professional services that may be
generated in connection with the Services. The parties acknowledge that the
service charges under the Prime Contract may be amended within 14 days of the
Effective Date. If such service charges are amended, the parties agree to use
the Change Control process set forth herein to amend the service charges set
forth in Exhibit 7.2 to take into account the amendments made to
the Prime Contract service charges.

7.3                                 MAXIMUS will invoice Accenture monthly for
the services provided under the Subcontract no later that 90 days after service
provision in a format and with level of detail acceptable to Accenture and the
State. The invoice will be provided by MAXIMUS to Accenture no later than the
third business day following the end of the month. A properly completed invoice
shall not be deemed provided to Accenture unless, at a minimum, invoice detail,
by Service provided to each service recipient, has been submitted to Accenture
in an electronic format specified in writing by Accenture.

7.4                                 Accenture will pay MAXIMUS via electronic
funds transfer within 10 business days after receipt of the MAXIMUS invoice, or
5 business days upon receipt of
payments for the Services from the State, whichever is later.

7.5                                 Subject to Sections 2.4.4 and 2.5.2,
Accenture may deduct from MAXIMUS payments any costs attributable to Sections
2.5.3 and 2.5.5. Accenture shall inform MAXIMUS prior to incurring such
costs, and MAXIMUS shall have a right to audit such costs.

7.6                                 If Accenture reasonably and in good faith
disputes that any portion of any amount claimed by MAXIMUS is payable or has
been erroneously paid, as the case may be, then Accenture will provide MAXIMUS
with written notice specifying the disputed amount and the basis for the
dispute in reasonable detail within 30 calendar
days of the date the invoice is received, and will pay any undisputed portion
of the amount provided those amounts have not been set off or withheld by the
State. Upon resolution of the disputed portion, any amounts owed to MAXIMUS
shall be paid within 30 calendar
days after the date of resolution provided those amounts have not been set off
or withheld by the State, in which case they will be paid with 30 calendar days
after Accenture’s receipt from the State. For the avoidance of doubt, Accenture
shall have no obligation to pay MAXIMUS any amount, disputed or undisputed,
that has been set off or withheld by the State under the Prime Contract until
such time as the State has paid such amounts to Accenture.

 12
 

 

7.7                                 Accenture shall pay any taxes applicable to
this Agreement (except taxes based on or measured by MAXIMUS’s or any legal
person’s net income or property, FICA, FUTA and other taxes imposed by law upon
MAXIMUS and MAXIMUS employee/s due to the employment relationship between
MAXIMUS and MAXIMUS employee/s including any sales, use, excise, value-added,
services, consumption, and other similar taxes and duties assessed on the
provision of independent contractor services by MAXIMUS to Accenture or on
MAXIMUS’s charges to Accenture under this Agreement, including the
reimbursement of expenses). If Accenture is required to withhold or deduct any
taxes from any payment to MAXIMUS, Accenture will not be required to “gross up”
the amount of such payment and shall pay to MAXIMUS the total amount reflected
on the invoice less the applicable withholding taxes. Accenture and MAXIMUS
shall cooperate in good faith to minimize taxes to the extent legally
permissible. Each party shall provide and make available to the other party any
resale certificates, treaty certification and other exemption information
reasonably requested by the other party. Upon request, MAXIMUS agrees to
provide Accenture any documents which may be required for regulatory purposes.

ARTICLE
8 — DEFAULT AND REMEDIES

8.1           MAXIMUS Events of Default.

Any one or more of the
following events shall, after the required notice(s) and opportunity to
cure, constitute an “Event of Default” on the part of MAXIMUS:

8.1.1                        The failure of MAXIMUS to timely pay to
Accenture any sum of money required under the Subcontract after receipt of
written notice from Accenture that the same is due; or

8.1.2                        Any one of the following events by MAXIMUS,
which is not cured within 20 calendar days (except as specified in Section 8.1.4
below) after receipt of written notice of breach from Accenture; provided,
however, that if the parties mutually agree to extend the period or if such
cure is of a nature that it could not reasonably be performed within 20
calendar days, such 20-day period may be extended so long as MAXIMUS
begins performance within such 20-day period and thereafter diligently
and continuously pursues performance:

8.1.2.1                                  MAXIMUS breaches a material obligation under
this Agreement where such breach and a respective remedy is not covered under a
description of Performance Standards set forth in this Subcontract; or

8.1.2.2
                               MAXIMUS knowingly employs an illegal alien in
the performance of Services; or

8.1.2.3                                  MAXIMUS becomes insolvent or is declared
bankrupt; or

8.1.2.4                                  MAXIMUS files for reorganization under the
bankruptcy code; or

8.1.2.5                                  MAXIMUS commits any act of bankruptcy or
insolvency, either voluntarily or involuntarily; or

8.1.2.6                                  MAXIMUS makes or has made an intentional and
material misrepresentation or omission in any materials provided to Accenture
or the State; or

 13
 

 

8.1.2.7                                  MAXIMUS fails to promptly pay any and all
undisputed taxes or assessments imposed by and legally due the State or federal
government; or

8.1.2.8                                  MAXIMUS admits in writing its inability to
pay its debts or makes an assignment for the benefit of creditors without the
approval of Accenture; or

8.1.2.9                                  If there is a material deterioration in
MAXIMUS’s financial stability such that Accenture has reasonable cause to doubt
MAXIMUS’s ability to fulfill its obligations under the Subcontract; or

8.1.2.10                            MAXIMUS knowingly utilizes a vendor in the
performance of Services which would result in a conflict of interest as
described in the Prime Contract; or

8.1.2.11                            MAXIMUS improperly refuses to allow
Accenture and/or the State, each of their designees and/or the other entities
permitted to conduct audits pursuant to the Prime Contract access to all
documents, papers, letters, or other material subject to the audit provisions
of the Prime Contract; or

8.1.2.12                            MAXIMUS refuses to allow auditor access to
MAXIMUS facilities or otherwise fails to cooperate with an audit as required by
the Prime Contract in a manner that materially impedes such audit; or

8.1.2.13                            MAXIMUS fails to bargain with any applicable
labor union or to comply with relevant terms of collective bargaining
agreements that cover employees, if any, consistent with state and federal
laws, such that performance of the Subcontract and Prime Contract is endangered
or impaired.

8.1.3                        With regard to the events involving
bankruptcy or insolvency (events set forth in Section 8.1.2.3 — Section 8.1.2.5
above), MAXIMUS shall, at the discretion of Accenture or pursuant to court
order, be considered as having cured the event by submitting a post-bankruptcy
or post-insolvency guarantee to Accenture that MAXIMUS intends to complete
Contract performance despite its bankrupt or insolvent status.

8.1.4                        With respect to the events described in Sections
8.1.2.2,  8.1.2.9,  8.1.2.10, and 8.1.2.12 above, the
cure period for MAXIMUS shall be no more than five business days.

8.2                                 If a MAXIMUS Event of Default has occurred as
set forth in Section 8.1 above, Accenture shall have the right to
terminate the Subcontract. If Accenture elects to terminate, then Accenture
shall provide MAXIMUS with a second written notice (“Termination Notice”)
evidencing its intent to terminate this Subcontract and reciting that Accenture
intends to pursue termination of the Subcontract if the Event of Default is not
cured. If MAXIMUS fails to cure the default, then Accenture may terminate this
Subcontract and exercise all of its remedies, including all those at law or
equity consistent with the terms of the Subcontract. In the event of
termination, Accenture and MAXIMUS shall work together in good faith to phase
out the Services of the Subcontract and in accordance with any applicable terms
of the Subcontract. As part of such phase out, and to ensure that Accenture can
continue to meet its obligations under the Prime Contract, MAXIMUS shall allow
Accenture (or its designated subcontractor or agent) to interview, make offers
of employment, and hire any employees or subcontractors that MAXIMUS had hired
to work on the Project.

 14
 

 

8.3           Accenture
Events of Default.

Any
one or more of the following events shall, after the required notice(s) and
opportunity to cure, constitute an “Accenture Event of Default”:

8.3.1                        Accenture fails to timely pay any amounts
owed to MAXIMUS under this Agreement, other than amounts disputed in good faith
or amounts set off or withheld by the State; or

8.3.2                        Accenture breaches any other material
obligation under this Agreement. The cure period for a material breach by
Accenture shall be 30 calendar days from receipt of notice of material breach;
or

8.3.3                        Upon the occurrence of an “Accenture
Insolvency Event of Default.”  The
occurrence of any one or more of the following events shall constitute an
Accenture Insolvency Event of Default:

8.3.3.1                                  Accenture admits in writing its inability
to pay its debts generally or makes a general assignment for the benefit of
creditors; or

8.3.3.2                                  any affirmative act of insolvency by
Accenture or the filing by or against Accenture (which is not dismissed within
90 days) of any petition or action under any bankruptcy, reorganization,
insolvency arrangement, liquidation, dissolution or moratorium law, or any
other law or laws for the relief of, or relating to, debtors; or

8.3.3.3                                  the subjection of a material part of
Accenture’s property to any levy, seizure, assignment or sale for or by any
creditor, third party or governmental agency.

8.4                                 MAXIMUS Remedies in
the event of an Accenture Event of Default.

Upon the occurrence of an “Event
of Default” on the part of Accenture, MAXIMUS is entitled to any one or all of
the following remedies:

8.4.1                        Seek
equitable relief and/or institute legal proceedings against Accenture
consistent with the terms of this Agreement to collect payment of any damages
or sums owed by Accenture, or to compel the performance of any obligation
required to be performed by Accenture under this Agreement including, where
appropriate, actions for specific performance and/or injunctive relief; and

8.4.2                        Terminate
this Agreement. If MAXIMUS elects to terminate, then MAXIMUS shall provide
Accenture with a second written notice (“Termination Notice”) evidencing its
intent to terminate this Subcontract and reciting that MAXIMUS intends to
pursue termination of the Subcontract if the Accenture Event of Default is not
cured. The Termination Notice will not be effective unless it states that
MAXIMUS intends to pursue termination of this Subcontract if the Accenture
Event of Default is not cured.  If
Accenture fails to cure the default, then MAXIMUS may terminate this Agreement
and exercise all of the remedies available to it.

In the event of termination under this Section 8.4.2,
MAXIMUS shall work with Accenture in good faith to phase out the services of
this Subcontract. As part of such phase out, and to ensure that Accenture can
continue to meet its obligations under the 

 15
 

 

Prime Contract, MAXIMUS shall allow Accenture
(or its designated subcontractor or agent) to interview, make offers of
employment, and hire any employees that MAXIMUS had hired pursuant to the
Subcontract.

8.5                                 If
MAXIMUS commits an Event of Default in the performance of any term, provision,
covenant or condition, Accenture may, upon notice to MAXIMUS, perform or have
performed for it the same services at the reasonable expense of MAXIMUS.  If, at any time and by reason of such Event of
Default, Accenture elects to pay any sum of money or do any act which will
require the payment of any sum of money, or incur any expense in the
enforcement of its rights under this Section, such sum or sums in excess of the
amounts that would have been payable to MAXIMUS for such performance under this
Subcontract, together with a rate of interest shall be repaid to Accenture by
MAXIMUS promptly when billed therefor. Interest will be calculated using the
Department of Treasury’s Median Rate (resulting from the Treasury’s auction of
13-week bills) for the week in which interest is assessed, but in no
event to exceed the highest lawful rate of interest. Accenture shall use
commercially-reasonable efforts to mitigate any such costs.

ARTICLE 9 — TERM, RENEWAL, AND TERMINATION
PROVISIONS

9.1                                 Term/Renewal. The parties agree that the term
of this Agreement shall commence upon the Effective Date and shall be
co-terminus with the Prime Contract. If the State exercises its right to renew
the Prime Contract, Accenture will renew the Subcontract so that it is
co-terminus with the Prime Contract. If renewal of the Prime Contract is
subject to negotiation between Accenture and the State, Accenture and MAXIMUS
shall negotiate a renewal of the Subcontract, taking into account MAXIMUS
performance evaluations and any material changes in the Prime Contract during
the Term. Any renewal or extension of this Agreement shall be in writing and
signed by both parties.

9.2                                 Termination for Convenience. If the State
terminates, in whole or in part, the Prime Contract for its convenience, then
Accenture may terminate for its convenience the Subcontract, in whole or in
part, but only to the same extent as the Prime Contract is terminated,
whereupon MAXIMUS shall cease the provision of the terminated services to
Accenture in accordance with the reasonable terms of such notice.

9.3                                 Partial Termination for Cause. Accenture may
terminate the Subcontract in part upon the occurrence of an Event of Default by
MAXIMUS. In the event of a partial termination by Accenture, MAXIMUS shall
continue to provide any services or deliverables required to be provided and
not terminated. If the Event of Default is caused by the default of MAXIMUS,
and to the extent the cause of the default is beyond the control of MAXIMUS,
and without its fault or negligence, MAXIMUS shall not be liable for any
damages arising from the Event of Default, unless the subcontracted services or
supplies were obtainable from other sources without significant increase in
costs and in sufficient time for MAXIMUS to meet the required delivery schedule.
If, after termination of the Subcontract by Accenture due to an Event of
Default by MAXIMUS, a court of competent jurisdiction or arbitration panel
issues a final ruling that there was not an Event of Default by MAXIMUS or that
the Event of Default was excusable, the rights and obligations of the parties
shall be the same as if the termination had been for the convenience of
Accenture.

9.4                                 Consequences of Termination by Accenture.

9.4.1                        Termination for Cause.

 16
 

 

If this Agreement is
terminated by Accenture for an Event of Default of MAXIMUS, MAXIMUS shall only
be entitled to payment for Services performed in accordance with the
Subcontract, which shall be offset by any actual damages finally determined to
be caused by the Event of Default and due Accenture consistent with the terms
of this Agreement. This remedy is supplemental to any other Accenture remedy
upon the occurrence of a MAXIMUS Event of Default. In the event of a
termination for cause, to ensure that Accenture can continue to meet its
obligations under the Prime Contract, MAXIMUS shall allow Accenture (or its
designated subcontractor or agent) to interview, make offers of employment, and
hire any employees or subcontractors that MAXIMUS had hired pursuant to the
Subcontract.

9.4.2                        Termination for Convenience.

The Prime Contract will
control the parties’ rights and obligations following a termination for
convenience with the additional requirements that any payments due to MAXIMUS
following a termination for convenience shall only be paid after Accenture has
received a termination for convenience payment from the State and MAXIMUS shall
make commercially-reasonable efforts to mitigate any costs arising after notice
of termination. In addition, if Accenture terminates part of this Agreement for
convenience, Accenture and MAXIMUS shall meet promptly to address in good faith
the pricing terms of the MAXIMUS services and/or deliverables remaining in
effect; should Accenture and MAXIMUS determine that the partial termination has
effected a material change in the allocation of risk between the parties, then
the pricing terms of the MAXIMUS services and/or deliverables remaining in
effect shall be adjusted as agreed upon by the parties to compensate for such
change. MAXIMUS shall take commercially reasonable efforts to mitigate
increases in costs that might arise with respect to remaining services and/or
deliverables as a result of termination for convenience.

9.4.2.1                                  Upon termination of its obligations under
this Subcontract in accordance with Section 9.4.2 above, MAXIMUS
shall submit a request for payment. In no event shall any such request include
any termination costs or charges for termination for convenience that includes
loss of profits, anticipated profits or damages.

9.4.2.2                                  In the event of termination in whole or in
part of the Subcontract in accordance with Section 9.4.2 above, to
ensure that Accenture can continue to meet its obligations under the Prime
Contract, MAXIMUS shall allow Accenture (or its designated subcontractor or
agent) to interview, make offers of employment, and hire any employees that
MAXIMUS had hired pursuant to the terms of the Subcontract and that are
affected by the termination.

9.5                                 Payment for Services requested by Accenture
and provided by MAXIMUS after termination, including turnover assistance, shall
be paid as mutually agreed upon.

ARTICLE 10 — STEP-IN

10.1                           If Accenture reasonably believes that it
needs to take action in connection with the MAXIMUS services and/or
deliverables because a serious risk exists with respect to MAXIMUS’s ability to
remedy a material failure in any of the services or to provide any of the
deliverables, that in Accenture’s reasonable opinion is likely to result in an
Event of Default by MAXIMUS, then Accenture shall notify MAXIMUS in writing of
the following:

 17
 

 

10.1.1      the action it wishes
to take, either itself or using a third party acting on its behalf;

10.1.2      the reason for such
action;

10.1.3      the date it wishes to
commence such action;

10.1.4      the time period which
it believes will be necessary for such action; and

10.1.5                  to
the extent practicable, the effect on MAXIMUS and its obligation to provide the
Services during the period such action is being taken and proposals for dealing
with the resumption of the Service(s) concerned at the end of that period.

10.2                           Following service of such notice, Accenture
shall take such action as notified to MAXIMUS and any consequential additional
action as it reasonably believes is necessary (together, the “Required Action”)
and MAXIMUS shall give all reasonable assistance to Accenture while it is
taking the Required Action.

10.3                           If MAXIMUS is not in breach of its
obligations under the Subcontract, then for so long as and to the extent that the Required
Action is taken, and this prevents MAXIMUS from providing any part of the
Services:

10.3.1                  MAXIMUS
shall be relieved from its obligations to provide such part of the Services and
to meet Service Levels and Performance Standards (and responsibility for any
associated liquidated or other damages) directly related to such part of the
Services; and

10.3.2                  in
respect of the period in which Accenture is taking the Required Action and
provided that MAXIMUS provides Accenture with reasonable assistance (such
assistance to be at the expense of Accenture to the extent additional costs are
incurred), the service charges due from Accenture to MAXIMUS shall equal the
amount MAXIMUS would receive for such part of the Services if it were
satisfying all its obligations and providing the Services affected by the
Required Action in full over that period.

10.4                           If the Required Action is taken as a result
of an Event of Default by MAXIMUS, then for so long as and to the extent that
the Required Action is taken, and this prevents MAXIMUS from providing any part
of the Services:

10.4.1                  MAXIMUS
shall be relieved of its obligations to provide such part of the Services and
to meet Service Levels directly related to such part of the services; and

10.4.2                  in
respect of the period in which Accenture is taking Required Action and provided
that MAXIMUS provides Accenture with reasonable assistance, the service charges
due from Accenture to MAXIMUS shall equal the amount MAXIMUS would receive if
it were satisfying all its obligations and providing the Services affected by
the Required Action in full over that period, less an amount equal to all
Accenture’s reasonable costs of operation in taking the Required Action. Notwithstanding
the foregoing, if Accenture’s reasonable costs exceed the amount that MAXIMUS
would receive under this subsection, MAXIMUS shall instead reimburse Accenture
by an amount equal to the excess less any costs or expenses.

10.5                           If any physical damage is caused to MAXIMUS’s
property and/or the technical infrastructure used by or on behalf of MAXIMUS to
enable it to perform its obligations under the Subcontract 

 18
 

 

                                                due to the exercise by Accenture of its
step-in rights under this provision, then Accenture shall compensate MAXIMUS
for any actual losses MAXIMUS incurs, except to the extent that MAXIMUS is able
to collect under any policy of insurance in respect of those losses.

10.6                           In the event that Accenture exercises its
rights under this Article 10, to ensure that Accenture can continue
to meet its obligations under the Prime Contract, MAXIMUS shall allow Accenture
(or its designated subcontractor or agent) to interview, make offers of
employment, and hire any employees of MAXIMUS that worked on the Project..

ARTICLE
11 — SOFTWARE AND INTELLECTUAL PROPERTY

11.1                           Accenture Materials and State Materials

11.1.1                  To the extent required by this Agreement,
Accenture will use reasonable efforts to provide the Accenture Materials, and
will use reasonable efforts to request that the State provide the State
Materials described in Schedule 6 of the Prime Contract to MAXIMUS to enable
MAXIMUS to provide the Services during the term of this Agreement. Accenture
will use reasonable efforts to obtain, and will use reasonable efforts to have
the State obtain, all consents necessary to permit Accenture and the State to
provide the Accenture Materials and State Materials to MAXIMUS and its
subcontractors and to permit MAXIMUS and its subcontractors to use the
Accenture Materials and State Materials as required to provide the Services,
and will provide evidence of such consents to MAXIMUS at its request. Accenture
will make all payments necessary to obtain such consents for the Accenture
Materials, and will use reasonable efforts to ensure that the State makes all
payments necessary, to obtain such consents for the State Materials, and
MAXIMUS will cooperate with Accenture and the State in obtaining such consents.
MAXIMUS shall use commercially reasonable efforts to minimize the cost of any
such cooperation.

11.1.2                  In the event that Accenture Materials
infringe or violate the rights of any third parties or any applicable legal
requirements, MAXIMUS will notify Accenture and submit a Change Order request. In
such event, MAXIMUS’s failure to perform its obligations under the Subcontract
shall be excused to the extent that such failure results from infringement or
violation. Accenture, at its own expense, will defend
any third party action brought against MAXIMUS to the extent that such action
is based upon a claim that the Accenture Materials infringe that third party’s
currently existing United States patent, copyright or trademark or violate a
trade secret of such third party. Accenture will pay those costs and damages
(including attorney’s fees) finally awarded in any such action.

11.1.3                  All Accenture Materials provided or used
pursuant to this Agreement shall remain the exclusive property of Accenture or
its licensors, unless expressly provided otherwise in the terms of this
Agreement. All State Materials provided or used pursuant to this Agreement
shall remain the exclusive property of the State or its licensors, unless
expressly provided otherwise.

11.1.4                  MAXIMUS shall not have or obtain any rights
in Accenture Materials or State Materials provided to MAXIMUS under this
Subcontract other than to use those Materials solely for the purpose of
performing any required responsibilities of MAXIMUS or as otherwise permitted
under this Agreement, or as otherwise may be authorized by Accenture in writing
from time to time.

 19
 

 

11.1.5                  Unless MAXIMUS is paying maintenance or
license fees related thereto pursuant to this Agreement, MAXIMUS shall use
Accenture Materials and State Materials only for purposes of this Subcontract. The
use of Accenture Materials and State Materials by MAXIMUS shall be subject to
any restrictions and other license terms for such items (including any
restrictions and license terms contained in applicable third party software
license agreements).

11.2                           MAXIMUS Software.

11.2.1                  To the extent required by this Subcontract,
MAXIMUS will provide MAXIMUS Software to Accenture relevant to its provision of
Services, a description of which is set forth in Schedule 1 and Schedule 6 of
the Prime Contract. MAXIMUS Software will include, but not be limited to, (i) the
MAXe software together with any modifications made to re-platform the MAXe
software during the transition phase of the Prime Contract to permit it to work
with the State’s system and (ii) any software developed by MAXIMUS at its
own expense. Unless expressly provided otherwise in this Agreement, MAXIMUS
will be responsible for maintaining the MAXIMUS Software and for any license or
maintenance fees related to providing MAXIMUS Software for use in connection
with the Subcontract. All MAXIMUS Software shall remain the exclusive property
of MAXIMUS, its subcontractors, or their licensors, unless expressly provided
otherwise in this Subcontract. MAXIMUS shall use commercially-reasonable
efforts to obtain all necessary consents or licenses for Accenture and the
State to use the MAXIMUS Software. By way of clarification and not limitation,
MAXIMUS Software shall include the components developed by MAXIMUS and
described in Schedule 6 to the Prime Contract as owned by “Vendor A” and as
further described in the February 11, 2005 letter.

11.2.2                  With respect to MAXIMUS Software owned by
MAXIMUS, MAXIMUS will grant to Accenture a non-exclusive, fully paid-up license
to use, copy, display and create derivative works of such MAXIMUS Software only
for the duration of and to extent necessary for Accenture’s use in the
provision of the Services and the satisfaction of its obligations under the
Prime Contract. MAXIMUS also grants to Accenture the right to transfer such
license to the State for its internal use to the extent necessary for the satisfaction
of Accenture’s obligations under the Prime Contract. The parties will mutually
agree on applicable terms for MAXIMUS’s support of such Software after
termination or expiration of the Subcontract.

11.3                           Rights to Custom Software.

11.3.1                  MAXIMUS shall assign to Accenture all right,
title, and interest in the copyright to any Custom Software delivered to
Accenture for the satisfaction of Accenture’s obligations under the Prime
Contract. MAXIMUS will take any reasonable actions necessary to effectuate such
transfer. Accenture hereby grants to MAXIMUS a perpetual, non-exclusive,
transferable worldwide license to use, modify, enhance and create derivative
works of the Custom Software for use in
MAXIMUS’s ordinary course of business (including MAXIMUS’s business as a
service provider). In the event MAXIMUS modifies or creates a derivative
work of the Custom Software, MAXIMUS grants Accenture a perpetual,
non-exclusive, irrevocable, fully paid-up license to use, copy, modify,
maintain, display, and create derivative works of such modifications or
derivative works, and to authorize any party to do the foregoing in
satisfaction of 

 20
 

 

                                                Accenture’s obligations under the Prime
Contract. Subject to the requirements set forth in the Prime Contract, MAXIMUS
retains all right, title, and interest in any designs, methods, processes,
knowledge and ideas underlying or used to develop the Custom Software, and
nothing in the Subcontract shall restrict MAXIMUS from the use of any ideas,
concepts, know-how, methodologies, processes, technologies, algorithms or
techniques relating to the Services that MAXIMUS, individually or jointly,
develops or discloses under the Subcontract.

11.4         Trade
Secrets.

11.4.1                  In the course of performance of the Services,
each party may use or provide to the other party proprietary products,
materials, information, tools, and methodologies that are the trade secrets of
the providing party or third parties (collectively “Proprietary Items”). The
receiving party shall have or obtain no rights in such Proprietary Items (or in
any modifications or enhancements to them) other than (a) to use them as
authorized by the providing party in writing from time to time solely for
purposes of performing any required responsibilities under this Agreement or
the Prime Contract, (b) to the extent the Proprietary Items are
incorporated into a deliverable, to use them as part of the deliverable for
purposes of performing any required responsibilities under this Subcontract or
the Prime Contract, (c) pursuant to the 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, or (d) as
otherwise provided in the Subcontract.

11.4.2                  MAXIMUS and Accenture each acknowledge that
the Software, Materials and Documentation provided by the other party
(excluding Custom Software) includes proprietary information of the other party
(or the State, if Accenture is providing State Software to MAXIMUS), and each
party agrees to keep and treat such Software as a trade secret or otherwise
confidential, at all times, consistent with State law.

11.5         Source
Code.

11.5.1                  With respect to MAXIMUS Software owned by
MAXIMUS and provided to Accenture under this Agreement, at Accenture’s request
MAXIMUS shall, at MAXIMUS’s option, (a) provide Accenture with source code
for such MAXIMUS Software, or (b) place such source code in a third-party
escrow arrangement with a designated escrow agent, which shall be identified to
Accenture, and which shall be directed to release the deposited source code if
MAXIMUS materially fails to provide support
and maintenance for the MAXIMUS Software as required under this Agreement or if
MAXIMUS ceases business activities, in accordance with a mutually
acceptable escrow agreement (which acceptance may not be unreasonably delayed
or withheld). If MAXIMUS is required under this Agreement to provide support
and maintenance for such MAXIMUS Software, such source code shall be updated
for each new release and modification of the relevant software issued during
the term that MAXIMUS is required to provide support and maintenance. Accenture’s
use of such source code shall be limited to support and maintenance of the
MAXIMUS Software for internal use during the term of the license until such
time as MAXIMUS resumes support and maintenance for such Software as required
under the Subcontract. MAXIMUS shall identify the escrow agent upon delivery of
the MAXIMUS Software and shall certify annually that the escrow remains in
effect in compliance with the terms of this paragraph and the applicable escrow
agreement.

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11.5.2                  With respect to MAXIMUS Software licensed by
MAXIMUS or its subcontractors from a third party and provided to Accenture
under the Subcontract, MAXIMUS shall use commercially reasonable efforts to
obtain for Accenture a source code escrow consistent with Section 11.5.1.

11.5.3                  All source code related to Custom Software
shall be delivered with the Custom Software.

ARTICLE
12 — WARRANTIES AND COVENANTS

12.1                           Warranties and Covenants.

12.1.1                  Each party warrants that the Services and
Deliverables for which it is responsible either solely or jointly with the
other party shall be delivered in accordance with the Performance Standards and
specifications set forth in this Agreement or, if no applicable Performance
Standards or specifications are set forth in this Agreement, in a good and
workmanlike manner and in accordance with generally accepted industry
practices.

12.1.2                  With respect to Deliverables for which
warranties and the duration thereof are not addressed in this Agreement, this
warranty will remain in effect for a period of six months following Acceptance
of each Deliverable required by this Subcontract.

12.1.3                  With respect to Services for which service
levels and remedies are not addressed in this Subcontract and that do not meet
this warranty throughout the six months after such Services are initially
performed, the responsible party will promptly correct, cure, replace or
otherwise remedy such performance at no cost to the other party or the State.

12.2                           Additional MAXIMUS Warranties.

12.2.1                  In addition to the warranties contained in Section 12.1,
MAXIMUS warrants its Services and the Deliverables in the same manner, to the
same extent, and for the same period of time (measured from acceptance of the
ultimate Prime Contract deliverable items by the State) as Accenture warrants
the same to the State under the Prime Contract.

12.2.2                  MAXIMUS warrants that no Service or
Deliverable for which it is responsible under this Agreement will infringe any
patent, trademark, copyright or any other proprietary right issued or honored
in the United States.

12.2.3                  MAXIMUS affirms that to the best of its
knowledge neither it nor its officers, partners, employees, permitted
subcontractors and/or agents have knowledge of any existing or potential
interest in conflict with the Project or this Agreement that could reasonably
be considered to: (a) negatively impact its participation during the
Project; (b) cause it or Accenture to violate any applicable law or
regulation; or (c) create any appearance of impropriety (all of which are
hereinafter collectively referred to as “Conflict”). If either party becomes
aware of a Conflict during the term of this Agreement, it will promptly bring
the matter to the attention of the other party and the parties will work
together to reach a mutually satisfactory resolution; if such mutually
satisfactory agreement cannot be reached within a reasonable period of time
(not to exceed ten business days after first notice, unless mutually agreed),
then Accenture may terminate this Agreement for cause.

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12.3         Additional MAXIMUS
Covenants

MAXIMUS covenants to Accenture as follows:

12.3.1                  MAXIMUS will comply at all times with all
applicable laws and regulations of any jurisdiction in which MAXIMUS acts;

12.3.2                  MAXIMUS, its employees and agents will comply
at all times with all security provisions in effect from time to time at
Accenture’s premises or any Accenture clients’ premises, with respect to access
to premises, and all materials belonging to Accenture or its clients;

12.3.3                  MAXIMUS shall not use Accenture’s name in any
promotional materials or other communications with third parties without
Accenture’s prior written consent; and

12.3.4                  MAXIMUS is legally authorized to engage in
business in the United States and in the State of Texas and will provide
Accenture satisfactory evidence of such authority upon request.

12.3.5                  The parties recognize and agree that this
Agreement is predicated upon features of MAXIMUS’s business organization. By
execution of this Agreement, MAXIMUS represents that it has no knowledge of any
party’s intent, either individually or as a group, to transfer more than 49.9%
of the corporate interests in MAXIMUS, either through one transaction or a
series of transactions. In addition, if MAXIMUS anticipates at any time during
the term of the Subcontract a transaction that would result in the sale of
substantially all of its corporate assets, a change of corporate control, a
material adverse change in financial results or a restructuring in ownership of
the company, MAXIMUS agrees to: (a) provide Accenture commercially
reasonable notice prior to the contemplated transaction, such period not to be
less than 60 days unless the terms of the transaction do not permit 60 days’
notice or unless the Board of Directors of MAXIMUS determines in good faith
that it cannot provide 60 days’ notice in the exercise of its duties; (b) expressly
make a sale of the assets, change in corporate control, and/or assignment of
this Agreement subject to the State’s consent as may be required under the
Prime Contract, and (c) provide an assurance to Accenture’s reasonable
satisfaction that the acquiring party or parties will maintain the commitment
of MAXIMUS to provide all services as required under this Agreement. A failure
by MAXIMUS to provide such assurance shall constitute a material breach of this
Agreement.

12.4                           Additional Accenture Covenants

Accenture covenants to
MAXIMUS as follows:

12.4.1                  Accenture will comply at all times with all
applicable laws and regulations of any jurisdiction in which Accenture acts;

12.4.2                  Accenture, its employees and agents will
comply at all times with all security provisions in effect from time to time at
MAXIMUS’s premises or any MAXIMUS client’s premises, with respect to access to
premises, and all materials belonging to MAXIMUS or its clients;

12.4.3                  Accenture shall not use MAXIMUS’s name in any
promotional materials or other communications with third parties without
MAXIMUS’s prior written consent; and

 23
 

 

12.4.4                  Accenture is legally authorized to engage in
business in the United States and in the State of Texas and will provide
MAXIMUS satisfactory evidence of such authority upon request.

12.5         WARRANTY
DISCLAIMER.

EXCEPT AS EXPRESSLY STATED IN
THE WARRANTY CLAUSES INCORPORATED IN THIS SUBCONTRACT, THE PARTIES MAKE NO
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED
WARRANTIES REGARDING MERCHANTABILITY.  EACH PARTY’S WARRANTIES EXTEND SOLELY TO THE
OTHER PARTY, THE STATE, AND TO THE APPLICABLE STATE AGENCY USER OF THE
SERVICES.

For the avoidance of doubt,
this Article 12 shall survive termination of the Subcontract.

ARTICLE
13 — INDEMNITIES

13.1         MAXIMUS Indemnities.

13.1.1                  MAXIMUS
shall indemnify and hold harmless Accenture, its agents, representatives,
contractors and subcontractors (but not including MAXIMUS or any of its
subcontractors), in respect of any claims or losses for which MAXIMUS is
responsible which may arise out of, or in the course of or in connection with
the provision of the Services by MAXIMUS or the performance of or failure of
MAXIMUS to perform any obligation under this Subcontract to the same extent
Accenture is required to indemnify the State under the Prime Contract for
claims or losses for which Accenture is responsible.

13.1.2                  For purposes of clarity, if, as a result of
any default or breach of this Agreement by MAXIMUS or other action or failure
to act (material or otherwise) by MAXIMUS, the State terminates the Prime
Contract for default or Accenture becomes obligated to pay damages (including
but not limited to Liquidated Damages under the Prime Contract) to the State or
becomes subject to a price reduction, set off or withholding of service charges
by the State, then in any such event MAXIMUS shall indemnify and save Accenture
harmless from all assessments, costs, damages, price reductions, set off or
withholding of service charges, plus reasonable attorney fees and costs of
investigation and defense to the extent of MAXIMUS’ proportionate
responsibility therefor.

13.2                           Accenture Indemnities.

Accenture
shall indemnify and hold harmless MAXIMUS, its agents, representatives,
contractors and subcontractors, in respect of any third party claims or losses
which may arise out of, or in the course of or in connection with the provision
of the Services or Deliverables by Accenture or the performance of or failure
of Accenture to perform any obligation under the Subcontract to the extent any
such claim is based upon Accenture’s negligence or willful misconduct in the
performance of the Services or the provision of the Deliverables.

ARTICLE 14 — DISPUTE
RESOLUTION

14.1         Disputes
Not Involving the State.

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In the event a dispute
arises under or relates to this Subcontract, and the State is not a
party to such dispute.

14.1.1                  Accenture and MAXIMUS
shall make good faith efforts to first resolve through the Accenture Program
Manager and the MAXIMUS Program Manager any dispute, controversy, or claim
arising out of, relating to, involving, or having any connection with the Subcontract
or otherwise related to the Services, including any question regarding the
validity, interpretation, scope, performance, or enforceability of this dispute
resolution provision. If the parties cannot resolve the dispute through the
program managers, the parties will escalate the dispute to higher levels of
management, including to the Accenture Government OG CEO and the MAXIMUS CEO. If
the dispute is not resolved internally within 30 days of initiation, either
party may request that the dispute be resolved through arbitration, in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association (“AAA”) and the AAA Optional Procedures for Large,
Complex Commercial Disputes, and both parties agree to submit the dispute to
arbitration for resolution. Any arbitration will be conducted on an individual,
rather than a class-wide, basis.

14.1.2                  The arbitration shall
be conducted in Chicago, Illinois, unless the parties mutually agree on an
alternative location. 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 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 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 writing of
the appointment and acceptance of the chairperson within 21 days of receiving
such request.

14.1.3                  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.

14.1.4                  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 the
Subcontract. The award of the arbitrators shall be final, and judgment on the
award may be entered by any court having jurisdiction to do so.

14.1.5                  Costs incurred in the
arbitration proceeding, including attorneys’ fees and expenses, shall be borne
in the manner determined by the arbitral panel.

14.1.6                  Nothing in the
foregoing shall prevent the parties, prior to the formation of the arbitral 

 25
 

 

                                                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.

14.1.7                  This dispute resolution
procedure 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.

14.1.8                  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 provision.

14.1.9                  MAXIMUS agrees to seek recourse solely
against Accenture, and not against the State in any of its capacities, for any
claim arising under the Subcontract.

14.2                           Disputes Involving the State.

Any
dispute involving this Subcontract and the State shall be settled as
follows:

14.2.1                  MAXIMUS
shall submit the claim to Accenture or, if so requested, to the State.

14.2.2                  Accenture
shall submit such claim to the State or shall timely notify MAXIMUS, in writing,
that it chooses not to do so, in which event, MAXIMUS shall have the right to
present such claim in the name of Accenture to the State. However, if Accenture
submits such claim and suffers any loss or damages whatsoever pursuant to the
claim, MAXIMUS shall, without further proceedings or adjudication by a court of
competent jurisdiction, pay to Accenture any and all losses, damages, costs and
fees occasioned by said loss, notwithstanding any payment provision to the
contrary.

14.2.3                  If
a final decision is issued by the State under the dispute resolution provisions
of the Prime Contract and the decision relates to or affects the Subcontract,
then Accenture shall transmit a copy of that decision to MAXIMUS within ten
days after its receipt by Accenture from the State. Within 30 days after
receipt of such decision from the State, Accenture shall notify MAXIMUS whether
Accenture intends to appeal the State’s decision. If Accenture chooses not to
file an appeal or institute suit and maintains that position after timely
request by MAXIMUS to appeal or institute suit, then MAXIMUS has the right to
appeal from such decision, in Accenture’s name, or at MAXIMUS’s sole election
to institute suit, in Accenture’s name, at MAXIMUS’s cost and expense.

14.2.4                  If
any administrative or judicial appeal or suit is taken at MAXIMUS’s request,
which relates to or affects this Subcontract, MAXIMUS shall have the right to
participate in the prosecution of the appeal or suit, including the preparation
of pleadings, introduction of evidence, and presentation of argument. In any
administrative or judicial appeal or suit taken or brought by MAXIMUS, upon
Accenture’s election not to do so, Accenture shall, in good faith and in every
reasonable manner, assist MAXIMUS.  MAXIMUS shall bear 

 26
 

 

                                                all costs and expenses incurred in
prosecuting any appeal or suit taken or brought solely at MAXIMUS’s request.

14.2.5                  If
a decision by the State, an administrative agency, or a court relating to the
Prime Contract becomes binding on Accenture by reason of the exhaustion of all
administrative or judicial remedies, and such decision relates to or affects
the Subcontract, then such decision shall also be binding, final, and
conclusive on MAXIMUS.

14.3                           No Settlements Without Consent.

14.3.1                  Neither
party shall enter into a written settlement with the State regarding any State
agency decision, or related to any appeal therefrom, which affects the
interests of the other party, without the prior written consent of the other
party.

14.4                           Performance to Continue.

14.4.1                  Each
party shall continue to perform its obligations under this Agreement pending
final resolution of any dispute arising out of or relating to this Subcontract.

ARTICLE
15 — COMPLIANCE WITH LAWS

15.1                           MAXIMUS shall comply, and shall require each
of its subcontractors to comply, with all laws, rules, codes, ordinances, and
licensing requirements that are applicable to the conduct of its business,
including those of federal, State, and local agencies having jurisdiction and
authority.  By way of non-exhaustive
example, MAXIMUS shall comply with the following laws to the extent applicable
to the conduct of its business: any labor laws applicable to Collective
Bargaining Agreements that cover MAXIMUS’s employees; any applicable provisions
of section 247A(e) of the Immigration and Nationalization Act; Titles I-IV
of the Americans with Disabilities Act; Sections 504 and 508 of the Federal
Rehabilitation Act amendments; and all prohibitions against discrimination on
the basis of race, religion, sex, creed, national origin, handicap, marital
status, or veteran’s status.  Material
violation of such laws shall be deemed a breach of a material obligation of
this Subcontract, except that any material violation of such laws shall not be
deemed a breach of a material obligation to the extent such material violation
results from an act or omission of the State or Accenture or their agents or
contractors or the failure of any facilities, equipment, software, data or
other resources provided by the State, Accenture, or their agents or
contractors to comply with such laws.

15.2                           Any changes to this
Agreement or the Services and Deliverables provided pursuant to this Agreement
necessitated by changes in existing statute or regulation, or the promulgation
of new regulations or the issuance of new statutes, shall be governed by the
clauses relating to Change Control set forth in Section 2.8 of this
Agreement.

 27
 

 

Article 16 — MISCELLANEOUS

16.1                           Appropriations. MAXIMUS understands
that the State’s performance and obligation to pay under the Prime Contract is
contingent upon appropriation by the Legislature. The Prime Contract provides
that, if funds are necessary and not available through appropriations for
payments under the Prime Contract, the State shall have the right to terminate
the Prime Contract. In the event of such termination, Accenture may terminate
the Subcontract, and MAXIMUS agrees that, if Accenture’s recovery against the
State is limited in some way, then MAXIMUS’s recovery against Accenture shall
be similarly limited. Accenture may seek payment from the State as permitted in
the Prime Contract and shall work cooperatively with MAXIMUS with regard to
such process to share in any recovery from the State in proportion to their
unpaid costs.

16.2                           Security and Confidentiality

16.2.1.               Each party shall comply fully with all
appropriate security procedures in its performance of the Subcontract.

16.2.2                  During the course of the Project, each party
may be given access to information that relates to the past, present, and future
research, development, business activities, products, services, and technical
knowledge of the other party or of the State (“Confidential Information”). In
connection therewith, subject to the provisions of Schedule 1 of the Prime
Contract, the following provisions shall apply:

16.2.2.1                            The Confidential Information of the discloser
(and/or of State) may be used by the receiver only in connection with
performance of the Services.

16.2.2.2                            Each party agrees to protect the
confidentiality of the Confidential Information of the other and the
Confidential Information of the State in the same manner that it protects the
confidentiality of its own proprietary and confidential information of like
kind and in a manner that satisfies the requirements of the Prime Contract. Access
to the Confidential Information shall be restricted to those of the parties’
personnel with a need to know and engaged in a use permitted hereby.

16.2.2.3                            The Confidential Information may not be
copied or reproduced without the discloser’s prior written consent; provided,
however, the receiver may make a reasonable number of copies of the
Confidential Information only to the extent necessary to accomplish the purpose
of this Agreement. Any copies made shall remain the property of the discloser
and shall include the discloser’s confidentiality and copyright notices as
originally included in the disclosed Confidential Information.

16.2.2.4                            All Confidential Information made available
hereunder, including copies thereof, shall be returned or destroyed upon the
first to occur of (a) completion of the Services or (b) request by
the discloser. However, Accenture may retain, subject to the terms of this Section 16.2.2,
copies of the Confidential Information required for compliance with its quality
assurance requirements.

 28
 

 

16.2.2.5                            Nothing in this Agreement shall prohibit or
limit either party’s use of information (including, but not limited to, ideas,
concepts, know-how, techniques, and methodologies) (i) previously known to
it without obligation of confidence, (ii) independently developed by it, (iii) acquired
by it from a third party which is not, to its knowledge, under an obligation of
confidence with respect to such information, or (iv) which is or becomes
publicly available through no breach of this Agreement.

16.2.2.6                            In the event either party receives a subpoena
or other validly issued administrative or judicial process requesting
Confidential Information of the other party or Confidential Information of the
State which that party has received from the other, it shall provide prompt
notice to the other of such subpoena or other process. The party in receipt of
process shall thereafter be entitled to comply with such process to the extent
required by law.

16.2.2.7                            Each party’s obligations under this Section 16.2.2
shall be binding upon such party and all of its related entities and shall
survive the expiration or termination of this Agreement.

16.3                           Ownership and Acceptance.

16.3.1                  Subject to Section 11.2.1,
Accenture shall have full ownership of deliverables and work product (of
whatever nature) developed or contributed to by MAXIMUS, in connection with the
Project (“Project Work”), excluding, however, any source or reference
materials, computer programs, documentation and similar information proprietary
to MAXIMUS that are used to produce Project Work (“Source Materials”). No
Source Material shall be incorporated into any Project Work except as Accenture
expressly agrees in advance in a work statement or otherwise in writing, and in
such event MAXIMUS hereby grants to Accenture a paid-up, non-exclusive,
worldwide, irrevocable, unlimited license to use, copy, and redistribute such
Source Material in connection with the Project Work in satisfaction of its
obligations under the Prime Contract. All Project Work is work made for hire on
behalf of Accenture, and MAXIMUS hereby assigns to Accenture all of its right,
title and interest in and to the Project Work, including but not limited to all
copyrights and patent rights. To the extent required for Accenture’s
performance of the Prime Contract, MAXIMUS shall deliver any Source Material to
Accenture upon request and hereby grants to Accenture a perpetual, worldwide,
and royalty-free license to use the Source Materials and to sublicense and
deliver the Source Materials to the State in satisfaction of its obligations
under the Prime Contract.

16.3.2                  Acceptance of MAXIMUS’s services and work
product shall be contingent upon the State’s acceptance of Accenture’s work
product to which MAXIMUS’s services have contributed or into which MAXIMUS’s
work product has been incorporated.

16.4                           Books and Records/Audit Rights.

16.4.1                  At all times during the term of this
Agreement, MAXIMUS shall maintain a complete and accurate set of files,
records, books, papers and accounts (“Records”) of all business activities and
operations conducted by MAXIMUS in connection with its performance under this
Agreement. MAXIMUS shall make such Records available to Accenture upon request.
All accounts required under this Agreement shall be maintained and prepared in 

 29
 

 

                                                accordance with generally accepted accounting
principles and in the formats which Accenture may reasonably direct.

16.4.2                  Unless otherwise directed by Accenture,
MAXIMUS shall maintain all Records pertaining to its performance under this
Agreement after the date of termination or expiration of this Agreement in
accordance with the Record Retention requirements of the Prime Contract (“Required
Period”).

16.4.3                  During the term of this Agreement and during
the Required Period, upon reasonable notice, MAXIMUS shall provide Accenture
and the State with reasonable access to inspect and copy all records and
information, including records and information stored electronically, relating
to this Agreement. In connection with such access, MAXIMUS shall not limit the
access of Accenture, the State or their duly authorized agents, representatives
or employees when they seek to perform such inspection or audit of MAXIMUS’s
Records. When requested by Accenture, but in any event not later than the end
of the Required Period, MAXIMUS shall deliver such Records to the State or the
State’s designee at MAXIMUS’s sole expense. MAXIMUS may at its own expense make
and maintain copies of Records for its files, subject to MAXIMUS’s obligation
to maintain the confidentiality of all Confidential Information of Accenture
and the State in accordance with Section 16.2 herein. Further, a
duly authorized representative of the State shall have access to and the right
to examine and copy any directly related Records or other recorded information,
and to examine any property within MAXIMUS’s possession or control, involving
transactions related to this Agreement. Such access for Records relating to (1) litigation
or settlement of claims arising from the performance of this Agreement, or (2) costs
and expenses of this Agreement to which the State’s duly authorized
representative has taken exception shall continue until such appeals,
litigation, claims, or exceptions are disposed of. MAXIMUS shall notify
Accenture in writing of its receipt of a request from the State to examine or
obtain copies of MAXIMUS’s Records within five days of receiving such request.

16.4.4                  Without limiting the class of those
authorized to perform an audit, MAXIMUS acknowledges that entities set forth in
Article 9 of the Prime Contract may conduct audits pursuant to this Section 16.4.

16.4.5                  Notwithstanding any fixed fee basis for
Deliverables and Services under the Prime Contract or this Agreement, to the
extent the State effects a prospective price redetermination for Services or
Deliverables in the Prime Contract, Accenture may audit the Services and
Deliverables provided by MAXIMUS using the same methodology used by the State
to redetermine the service charges of the Prime Contract and reduce the service
charges paid to MAXIMUS using the same methodology used by the State to reduce
the service charges of the Prime Contract.

16.5                           Insurance. Without
prejudice to Accenture’s rights under this Agreement, MAXIMUS shall maintain in
force appropriate insurance customary for companies in this business including:
(i) all insurance required by law; and (ii) the insurance listed on Exhibit 16.5
attached hereto with cover at or above the levels set out in that Exhibit.   All such insurance must be effective in each
case not later than the date on which the relevant risk commences under this
Agreement.

16.6                           Lobbying and Integrity. The parties agree that funds provided by
MAXIMUS for purposes of marketing under this Subcontract, if any, shall not be
deemed to be State funds for the purpose of lobbying. In addition, MAXIMUS
shall not, in connection with this Agreement, directly or 

 30
 

 

                                                indirectly (a) offer, confer, or agree
to confer any pecuniary benefit on anyone as consideration for any State
officer or employee’s decision, opinion, recommendation, vote, other exercise
of discretion, or violation of a known legal duty, or (b) offer, give, or
agree to give anyone any gratuity for the benefit of, or at the direction or
request of, any State officer or employee.  For purposes of the foregoing subclause (b),
gratuity means a payment in whatever form of more than nominal monetary value.

16.7                           Independent Contractor Status of MAXIMUS.

16.7.1                  MAXIMUS, together with its agents, officers
and employees, shall have and always retain under this Agreement the legal
status of an independent contractor, and in no manner shall they be deemed
employees of Accenture or deemed to be entitled to any benefits associated with
such employment. During the term of this Agreement, MAXIMUS shall maintain at
its sole expense those benefits to which its employees would otherwise be
entitled to by law, including health benefits, and all necessary insurance for
its employees, including workers’ compensation, disability, and unemployment
insurance, and provide Accenture with certification of such insurance upon
request. MAXIMUS remains responsible for all applicable federal, state, and
local taxes payable by MAXIMUS, and all FICA contributions for its employees.
MAXIMUS assumes full responsibility for the actions of its personnel while they
are performing services pursuant to this Subcontract and shall be solely
responsible for their supervision, daily direction and control, payment of
salary (including withholding of income taxes and social security), workers
compensation, disability benefits and the like. Neither party shall commit, nor
be authorized to commit or bind, the other party in any manner.

16.7.2                  Each MAXIMUS employee shall voluntarily waive
(give up) any interest, claim or entitlement to, or right to participate in,
and will not to enroll or participate in, any retirement, pension, 401(k),
health care, or other benefit plan maintained by Accenture for its employees,
partners, members, or shareholders of member firms. This waiver and election
not to enroll or participate applies to the entire term of the Subcontract and
this waiver will remain in full force and effect even if a governmental agency
or court subsequently determines that any such company employee was a “leased
employee” (as defined in section 414 of the internal revenue code) or a “common-law
employee” of Accenture during any portion of the term of this Subcontract.

16.8                           Excusable Delay. To the extent permitted in the Prime
Contract, neither party shall be liable for any delay or failure in performance
hereunder arising out of causes beyond its control and without its negligence
or fault. MAXIMUS, in the event of such a cause, shall notify Accenture
immediately in writing of its delay or failure in performance, describing the
cause and its effect upon MAXIMUS’s performance and the anticipated duration of
the inability to perform.

16.9                           Notices. Any notices required to be delivered by one party or another under or
in connection with this Agreement shall be deemed sufficiently given if
actually received or if sent by certified mail, return receipt requested, to
the attention of the individual signing this Agreement for the party to which
the notice is directed, at the address indicated below:

	
  If to Accenture:

  	
   

  	
  Accenture LLP

  
	
   

  	
   

  	
  1501 South MoPac Expressway, Suite 300

  
	
   

  	
   

  	
  Austin, Texas 78746

  
	
   

  	
   

  	
  Attn: David M. McCurley

  
	
   

  	
   

  	
  Title: Partner

  

 

 31
 

 

 

	
  With copies to:

  	
   

  	
   

  
	
   

  	
   

  	
  Accenture LLP

  
	
   

  	
   

  	
  Legal & Commercial Group

  
	
   

  	
   

  	
  1661 Page Mill Road

  
	
   

  	
   

  	
  Palo Alto, California 94304

  
	
   

  	
   

  	
  Attn: Douglas G. Scrivner

  
	
   

  	
   

  	
  Title: General Counsel

  
	
  And:

  	
   

  	
   

  
	
   

  	
   

  	
  Accenture LLP

  
	
   

  	
   

  	
  Legal & Commercial Group

  
	
   

  	
   

  	
  11951 Freedom Drive

  
	
   

  	
   

  	
  Reston, VA 20190

  
	
   

  	
   

  	
  Attn: C. Ben Foster

  
	
  If to MAXIMUS:

  	
   

  	
   

  
	
   

  	
   

  	
  MAXIMUS, Inc.

  
	
   

  	
   

  	
  11419 Sunset Hills Road

  
	
   

  	
   

  	
  Reston, Virginia 20190

  
	
   

  	
   

  	
  Attn: General Counsel

  

 

16.10                     Assignment. Neither party may sell, assign or transfer any of its rights, duties
or obligations under this Agreement without the prior written consent of the
other party.  However, Accenture may
assign the Subcontract to any of its wholly-owned subsidiaries capable of
performing its obligations under this Agreement. Either party may assign any
monies due under the Subcontract to a third party with the non-assigning party’s
written consent, which consent shall not be unreasonably withheld.  No change in either party’s ownership or
organization, if any, shall operate to release that party from its liability
for the prompt and effective performance of its obligations under this
Agreement.  All terms and conditions of
this Subcontract shall be binding upon and inure to the benefit of the parties
hereto and their successors and assigns.

16.11                     Publicity. MAXIMUS shall not issue or sponsor any advertising or publicity that
states or implies, either directly or indirectly, that Accenture or the State
endorses, recommends or prefers MAXIMUS’s services. MAXIMUS shall not use
Accenture’s or the State’s logo in any fashion without prior written approval. Notwithstanding
the foregoing, the parties may discuss and, subject to prior written approval
from the State, enter into a co-branding arrangement with respect to the
Services if such an agreement is determined to be mutually beneficial to the
parties.

16.12                     Negotiated Terms. The parties acknowledge that MAXIMUS
participated extensively in the development of the Proposal and all revised
offers, including comprehensive reviews of all materials prior to submission of
those materials to the State. The parties agree that the terms and conditions
of this Agreement are the result of negotiations between the parties and that
the Subcontract shall not be construed in favor of or against any party by
reason of the extent to which any party or its professional advisors participated
in the preparation of the Subcontract.

16.13                     Governing Law. All questions arising under or in
connection with this Agreement shall be governed and determined by the law
applicable to the Prime Contract; provided, however, that 

 32
 

 

                                                where the law applicable to the Prime
Contract does not provide the rules for determining the particular
question, the law of the State of Illinois shall apply.

16.14                     No Third Party Beneficiaries. Except as otherwise provided in this Agreement, and
any other provision of this Agreement that expressly confers third-party
beneficiary status on a person or entity, nothing contained in this Agreement
is intended or shall be construed to confer upon any person or entity (other than the parties
hereto) any rights, benefits or remedies of any kind or character whatsoever,
and no person or entity shall be deemed a third-party beneficiary under or by
reason of this Agreement.

16.15                     No Waiver. The waiver of a breach of any provision of this Agreement or the
failure to exercise or delay in exercising any right, power, or privilege under
this Agreement by either party shall not operate as or be construed as a waiver
by that party of any subsequent or continuing breach or of any right, power, or
privilege under this Agreement.

16.16                     Further Assurances. MAXIMUS hereby agrees to execute such
further documents as Accenture and/or the State may reasonably require in
connection with the award or performance of this Agreement.

16.17                     Entire Document. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter and supersedes
any previous understandings, representations, commitments or agreements, oral
or written. No provision of this Agreement may be waived except by a writing
signed by the party to be charged nor may this Agreement be amended except by a
writing executed by both parties. If any provision, or portion thereof, of this
Agreement is, or becomes, invalid under any applicable statute or rule of
law, it is to be deemed stricken and the rest of this Agreement shall remain in
full force and effect.

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

 33
 

 

EACH INTENDING TO BE BOUND TO THE OTHER, Accenture and MAXIMUS have caused this
Agreement to be executed by their duly authorized representatives as of the
date first above written.

	
  ACCENTURE LLP (“Accenture”)

  	
   

  	
  MAXIMUS, Inc.
  (“MAXIMUS”)

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  [Signature]

  	
   

  	
  [Signature]

  
	
   

  	
   

  	
   

  
	
  David M. McCurley

  	
   

  	
  Lynn
  P. Davenport

  
	
  [Printed name]

  	
   

  	
  [Printed name]

  
	
   

  	
   

  	
   

  
	
  Partner

  	
   

  	
  CEO

  
	
  [Title]

  	
   

  	
  [Title]

  
	
   

  	
   

  	
   

  
	
  [Date]

  	
   

  	
  [Date]

  
	
   

  	
   

  	
   

  
							

 

 

 

 

 

 

 

[NOTE: ALL exhibits have been omitted from this
document as filed. the registrant agrees to furnish SUPPLEMENTALLY to the
commission upon request a copy of such exhibits.]

 

 34Exhibit 10.2

FIRST
AMENDMENT TO SUBCONTRACT AGREEMENT

THIS
FIRST AMENDMENT TO THE SUBCONTRACT AGREEMENT (this “Amendment”), effective
as of June 21, 2006 (the “Amendment Effective Date”), is by and between
MAXIMUS, INC. (“MAXIMUS”)
and Accenture LLP (“Accenture”).

WHEREAS,
MAXIMUS and Accenture (the “Parties”) entered into that certain Subcontract
Agreement, dated June 25, 2005 (the “Agreement”), as amended
herein, in support of the Texas Integrated Eligibility and Enrollment project
(the “Project”) for the Texas Health and Human Services Commission (“HHSC”);

WHEREAS,
on April 11, 2006 Accenture delivered to MAXIMUS a Notice of Material
Breach and Demand for Cure (“Cure Notice”) pursuant to Section 8.1
of the Agreement in respect of MAXIMUS’ performance of its contractual
obligations;

WHEREAS,
on April 30, 2006 MAXIMUS delivered to Accenture a response to the Cure
Notice in which MAXIMUS acknowledged certain Project challenges but disagreed
with other elements of the Cure Notice;

WHEREAS,
on May 3, 2006 the Parties executed a letter agreement (“Letter Agreement”)
to address Accenture’s concerns raised in the Cure Notice;

WHEREAS,
in connection with the Parties’ discussions regarding the subject matter of the
Cure Notice and the Letter Agreement, and without waiver of or prejudice to
either Party’s rights under the Agreement, while advancing progress on the
Project, the Parties will pursue the following efforts:

·                  Accenture
shall assume operational responsibility for the Complaints and Appeals Services
(as defined herein) being provided by MAXIMUS immediately prior to the
Amendment Effective Date;

·                  Accenture
shall assume operational responsibility for the Technology Development Services
(as defined herein) being provided by MAXIMUS immediately prior to the Amendment
Effective Date;

·                  MAXIMUS
shall retain full responsibility for Call and Image Processing Services and
Integrated Eligibility Transaction Processing Services (as defined herein)
subject to the institution by Accenture of a new management and oversight structure
with respect to MAXIMUS’ performance of such services;

·                  Accenture
shall provide supplemental management and operational assistance to MAXIMUS
with respect to certain defined areas of MAXIMUS responsibility; and

·                  General
governance structures shall be revised and enhanced in an effort to improve
future operations under the Agreement;

WHEREAS,
the Parties have agreed to an allocation of financial responsibility as
described herein;

WHEREAS,
the Parties have reached agreement on additional matters arising out of the
concerns raised in the Cure Notice and the Letter Agreement; and

WHEREAS,
to effect the agreements of the Parties as described above, the Parties desire
to amend the Agreement as set forth herein.

 1
 

 

 

NOW
THEREFORE, in consideration of the premises and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties hereto agree as follows:

1.                                       Capitalized
Terms. Capitalized terms not otherwise defined herein shall have
the meanings assigned in the Agreement.

“Call and Image Processing Services”
shall mean the MAXIMUS services identified on Exhibit 2.1 and
elsewhere in the Agreement, as applicable, relating to processing of customer
calls and customer documents in support of Integrated Eligibility and CHIP
transactions.

“Complaints and Appeals Services” shall
mean the MAXIMUS services identified on Exhibit 2.1A relating to
research and resolution of customer and ombudsman complaints and appeals
regarding Integrated Eligibility and CHIP transactions, and for which Accenture
shall assume operational responsibility pursuant to this Amendment.

“Cover Costs” shall mean those costs
identified in Exhibit 7.2A, for which MAXIMUS has a responsibility
under this Agreement. Cover Costs shall consist of the salary and benefits of
the personnel assigned and other direct non-payroll costs, including travel (at
not more than $30 per hour) for out-of-town personnel, software license costs,
and standard load factors for recovery of professional development, recruiting,
absence, technology support, equipment and depreciation costs. Cover Costs
associated with Technology Development Services shall include margin as
established in the Prime Contract for Accenture’s employed resources, and 5%
margin for subcontractors, up to the amounts set forth in Exhibit 7.2A.
For any additional work required to perform the Technology Development
Services, such margin components shall not apply. Accenture shall use
commercially reasonable efforts to mitigate Cover Costs.

“Integrated Eligibility Transaction
Processing Services” shall mean the MAXIMUS services identified on Exhibit 2.1
and elsewhere in the Agreement, as applicable, relating to processing of
Integrated Eligibility transactions from Image Assembly through completion.

“Stable Performance” shall mean that a
Service complies with all applicable Key Performance Requirements for a period
of three (3) successive months after the Texas Access Alliance is
processing transactions relating to seventy-five percent (75%) of the statewide
caseload.

“Technology Development Services” shall
mean the MAXIMUS services set forth on Exhibit 2.1A relating to
development and maintenance of MAXe for Integrated Eligibility, and for which
Accenture shall assume operational responsibility pursuant to this Amendment.  For the avoidance of doubt, MAXe for
Integrated Eligibility is the Oracle-based MAXe product currently in use for
performance of the Integrated Eligibility Processing Services

“Transitioned Services” shall mean the
Complaints and Appeals Services and the Technology Development Services, in
each case as the operational responsibility 

 2
 

 

for such Services is transitioned to
Accenture pursuant to the terms of this Amendment.

2.             Amendment. The Agreement is hereby
amended as follows:

a.             Incorporation of the Prime Contract. In order to
clarify the relationship between the terms of the Prime Contract and the
Subcontract, new Section 1.2 is hereby inserted as follows:

“1.2                           It is the parties’ intent that MAXIMUS shall
take all reasonable steps within the scope of this Agreement to enable
Accenture to comply with the terms of the Prime Contract. MAXIMUS shall comply
with the provisions of the Prime Contract and all work done and/or deliverable
items shall be produced and performed by MAXIMUS and all of its subcontractors
strictly in accordance with the provisions of the Prime Contract. Unless
otherwise noted in the body of this Agreement, the provisions of the Prime
Contract, attached hereto as Exhibit 1.2, are incorporated into
this Agreement by reference in their entirety and are applicable to this
Agreement as written. MAXIMUS shall perform the services described herein in
the manner necessary to enable Accenture to fulfill its obligations under the
Prime Contract. These incorporated Prime Contract clauses are in addition to
the other clauses, terms, and conditions specifically set forth in this
Agreement. For the avoidance of doubt, if a provision of this Agreement is in
conflict with a provision of the Prime Contract, the Prime Contract provision
shall prevail.”

b.             Status Reports. In order to provide additional
transparency into MAXIMUS’ efforts to remediate the concerns identified in the
Cure Notice and Letter Agreement with respect to the Integrated Eligibility
Transaction Processing Services, new Section 2.10 is hereby
inserted as follows:

“2.10                     Certain Status Reports

2.10.1                              With respect to MAXIMUS’ performance of the
Integrated Eligibility Transaction Processing Services and the Call and Image
Processing Services, beginning on the Amendment Effective Date, MAXIMUS shall
provide detailed weekly status reports delivered electronically to Accenture
each Wednesday by 5:00 p.m. Central Time in the form attached hereto as Exhibit 2.10.
Such reports shall, at a minimum, summarize MAXIMUS’ performance of the Integrated
Eligibility Transaction Processing Services and the Call and Image Processing
Services against objective, verifiable metrics of performance specified in
writing by Accenture.

2.10.2                              For each calendar day that MAXIMUS fails to
timely deliver (i) any status report required under Section 2.10.1
for Services that have not achieved Stable Performance or (ii) any other
status report required under a Corrective Action Plan that pertains to MAXIMUS’
responsibilities following the Amendment Effective Date and for which a report
form or specific report content is 

 3
 

 

                                                            specified in or with respect to such
Corrective Action Plan, MAXIMUS shall pay to Accenture an amount equal to
$5,000.00 as liquidated damages and not as a penalty. Both Parties agree that
the amount of actual damage would be difficult to calculate and that the amount
stated above serves as a reasonable proxy for such damages.

2.10.3                              Notwithstanding MAXIMUS’ obligation to
provide the weekly status reports described above, if information comes to MAXIMUS’
attention that causes MAXIMUS to believe 
that MAXIMUS will be unable to meet any material  obligations in the Agreement or under any
Corrective Action Plan, MAXIMUS shall immediately notify Accenture.”

c.             Management and Oversight of Call and Image Processing
Services. In order to document additional management and oversight
structures designed to address concerns highlighted in the Cure Notice and
Letter Agreement relating to MAXIMUS’ performance of the Call and Image
Processing Services, new Section 2.11 is hereby inserted as
follows:

“2.11                     Management and Oversight of Call and Image
Processing Services.

2.11.1                  Within 14 calendar days after the Amendment
Effective Date, under Accenture’s direction, the Parties shall (i) establish
a Call and Image Processing Services command center and (ii) implement the
supplemental operational and vendor management structure applicable to MAXIMUS’
performance of the Call and Image Processing Services at the Midland service
facility, in each case as further described on Exhibit 2.11. MAXIMUS
hereby agrees to cooperate with Accenture and comply with the management
structures and procedures outlined in Exhibit 2.11. MAXIMUS shall
be financially responsible for Accenture’s Cover Costs in providing such
additional management and oversight in accordance with Exhibit 7.2A.

2.11.2                  On the Amendment Effective Date, MAXIMUS
shall provide Accenture written notice of all subcontracts that pertain to the
Call and Image Processing Services and provide complete and accurate copies of
such subcontracts to Accenture. If Accenture reasonably believes that an issue
exists with one of MAXIMUS’ subcontractors that has caused or is reasonably
likely to cause a material non-performance of obligations under this Agreement
or the Prime Contract, then the Parties shall meet immediately to discuss such
issues. After discussion of such issues and giving reasonable consideration to
MAXIMUS’ input on the impact of available alternatives and balancing the
effects on the Project globally, then, MAXIMUS shall take all commercially
reasonable steps to comply with Accenture’s reasonable request to terminate,
assign or restructure any such subcontracts (including, without limitation,
subcontracts with ImageAPI and ACP), including payment of any amounts due to
the applicable third party. However, nothing in this Amendment is intended to
create any 

 4
 

 

                                                third party beneficiary relationship. MAXIMUS
must obtain Accenture’s review and approval of amended subcontracts with
reasonable advance notice prior to execution by MAXIMUS. MAXIMUS’ failure to
take all commercially reasonable steps to timely comply with Accenture’s
request to terminate, assign or restructure any applicable subcontract shall be
deemed an Event of Default pursuant to which Accenture may deliver a
Termination Notice in accordance with Section 8.2. MAXIMUS
represents and warrants that, to the best of its knowledge and belief, it is
not in breach of any of its subcontracts that relate to the Project.

2.11.3                  Notwithstanding the forgoing, MAXIMUS shall
use commercially reasonable efforts to restructure the subcontract agreement
with ACP by July 15, 2006 and provide Accenture a weekly report regarding
the status, which report shall be Confidential Information. “

d.             Technology Development Services. In order to
document the arrangements specified for the Technology Development Services for
which Accenture is assuming  operational
responsibility pursuant to Section 3(a) of this Amendment, new
Section 2.4.5 is hereby inserted as follows:

“2.4.5                  MAXe Operations

2.4.5.1               From and after the Technology Development
Transition Date, Accenture shall perform the Technology Development Services in
such a manner as to maintain the level of business performance enabled by MAXe
at a level at least equal to business performance as of the Technology
Development Transition Date. If Accenture causes the performance of MAXe to
fail to operate at a level at least equal to MAXe performance as of the
Technology Development Transition Date, and that failure causes or materially
contributes to significant MAXIMUS productivity deficiencies that result in
MAXIMUS’ failure to achieve the work standards (to be provided at Accenture’s
request) that form the basis of its variable transaction rates, then the
following steps shall be taken:

2.4.5.1.1                              Accenture shall use commercially reasonable
efforts to cure the failure.

2.4.5.1.2                              If the failure cannot be cured, the Parties
shall jointly seek and implement other measures (e.g., process changes or
workflow changes) to increase MAXIMUS productivity. MAXIMUS shall not
unreasonably refuse to make such changes, and Accenture shall credit against
the Cover Costs applicable to the Technology Development Services an amount
equal to the incremental costs reasonably incurred by MAXIMUS in making such changes.
MAXIMUS shall be obligated to mitigate any such incremental costs.

 5
 

 

2.4.5.1.3                              If efforts under Sections 2.4.5.1.1
and 2.4.5.1.2 are exhausted and significant MAXIMUS productivity
deficiencies remain, then Accenture, at Accenture’s exclusive option, shall
either relieve MAXIMUS of liability for Liquidated Damages associated with the
KPRs impacted by the deficiencies or take financial responsibility for
increased MAXIMUS capacity to meet the KPRs, either of which shall be in
proportion to the contribution of Accenture’s failure among all causes of the
productivity deficiencies.

2.4.5.2               MAXIMUS agrees that with respect to those
components of MAXe implemented by MAXIMUS prior to the Technology Development
Transition Date, the remedies set forth in Section 2.4.5.1 shall
not be available to it.”

e.             General Governance and Oversight. In order to
strengthen the governance structures applicable to the Services generally, new Section 3.8
is hereby inserted as follows:

“3.8                           General Governance and Oversight.

3.8.1                        Collaborative Intent. The Parties acknowledge their mutual desire
for open, honest, transparent, complete and prompt communication between the
Parties and hereby (i) reaffirm the governance principles set forth in Section 3.2
of the Agreement, and (ii) adopt the additional governance principles set
forth in Exhibit 3.8. Each Party agrees to cooperate in good faith
to review the current implementation of such principles and to discuss any
reasonable changes that are necessary or appropriate to ensure joint decision-making
efforts for subject matters that affect both Parties. The Parties hereby
further confirm that efficient and effective communication requires full and
open disclosure of data and information related to the services provided under
this Agreement.

3.8.2                        Improved Executive Committee. Within 14 calendar days after the Amendment
Effective Date, the Parties shall re-organize and convene the Executive
Committee in accordance with Section 3.5 with such structural and
procedural changes as the Parties shall mutually agree in connection with the
review set forth in Section 3.8.1. The initial membership of the
Executive Committee shall include the Accenture U.S. Government Operating Group
Managing Director and the MAXIMUS Chief Executive Officer. The Executive
Committee shall meet at least semi-monthly until such time as the Parties
mutually agree to reduce the frequency of such meetings as a result of improved
MAXIMUS performance.

3.8.3                        Workgroups.

(i)                         Within ten days after the Amendment Effective
Date, the Parties shall jointly establish a workgroup to oversee and 

 6
 

 

                                    confirm seamless cooperation for the
provision of end-to-end integrated eligibility services.

(ii)                      Within ten days after the Amendment Effective Date, the Parties shall
jointly establish a workgroup to oversee and confirm seamless cooperation for
the provision of end-to-end CHIP services.”

f.              Interaction with the State. Section 4.6
is hereby deleted in its entirety and replaced with the following:

“4.6                           Except to address day-to-day technical operational
matters, MAXIMUS shall not communicate with the State on matters involving the
Project without Accenture’s prior written consent, or for circumstances in
which time is essential and immediate written consent is not practical, express
oral consent, followed promptly by written confirmation. For the avoidance of
doubt and absent the operation of an administrative or judicial process or
applicable law compelling disclosure by MAXIMUS, MAXIMUS shall not communicate
with the State (or representatives, employees or contractors of the State)
regarding the service performance, scope adjustments, schedule adjustments,
project status, or any other major issue affecting the Services without
Accenture’s concurrent participation or Accenture’s prior written consent. MAXIMUS
shall promptly report to Accenture any and all communications with the State
regarding issues that may have a material impact on the Services or the Project.
MAXIMUS shall design and implement a program to maintain a consistent level of
employee and contractor awareness regarding MAXIMUS’ obligations under this Section 4.6.
Upon notice by Accenture, MAXIMUS shall take such remedial steps directed by
Accenture, up to and including prompt removal from the Project of any employees
of MAXIMUS that fail to comply with this Section 4.6. Nothing in
this Agreement, including this Section 4.6, is intended to limit
the rights of HHSC under the Prime Contract.”

g.             Supplemental Management and
Operational Assistance. In order to allow Accenture to provide supplemental
management and operational assistance if future concerns arise regarding
MAXIMUS’ performance, new Section 4.7 is hereby inserted as
follows:

“4.7                           Supplemental Management and Operational
Assistance

4.7.1.1                           At any time following the Amendment Effective Date, if MAXIMUS fails,
or upon the basis of objective evidence considered by Accenture that MAXIMUS is
likely to fail, to meet any of its material obligations under the Agreement,
Accenture may, but shall not be obligated to, assign or acquire additional
Accenture resources as reasonably necessary or appropriate to correct the
deficiency and assist MAXIMUS in its performance of its obligations under the
Agreement. MAXIMUS shall be financially responsible for the Cover Costs
incurred by Accenture in connection with the deployment of additional resources
pursuant to this Section 4.7.1.1 as such Cover Costs are calculated
as 

 7
 

 

                                                            provided in Exhibit 7.2A;
provided, however, that if Accenture assigns additional resources in advance of
an actual MAXIMUS failure, MAXIMUS shall be financially responsible only for
the portion of such costs incurred by Accenture that a joint root cause
analysis identifies as substantially preventing or mitigating a likely breach
of contractual obligations.

4.7.1.2                           As of the Amendment Effective Date, MAXIMUS
shall assign and thereafter maintain sufficient additional executive and
mid-level resources who possess relevant experience to design, implement,
operate and troubleshoot MAXIMUS’ performance of its contractual obligations. Additional
supervisory resources shall be added as needed to permit MAXIMUS to maintain
supervisor-to-team ratios applicable to the Integrated Eligibility Transaction
Processing Center at one-to-10 (1-10). Upon MAXIMUS’ demonstration
of continued, reliable performance of its obligations in compliance with the
Agreement, the Parties shall meet to discuss whether staffing levels may be
reduced without detrimental impact to MAXIMUS’ performance of the Services as
substantiated by MAXIMUS in detail reasonably satisfactory to Accenture. Any
such staffing level reductions shall occur pursuant to a mutually-agreed
transition plan.

4.7.1.3                           The list of Key Personnel for purposes of the
Agreement set forth in Exhibit 5.4.1 to the Agreement shall be
replaced and superseded by the designations of Key Personnel set forth in the
new Exhibit 5.4.1 attached to this Amendment. In addition, MAXIMUS
shall fill the following Key Personnel positions as described below:

(i)                                     MAXIMUS Local Site Executive — The MAXIMUS
Local Site Executive shall: (1) devote substantially all of his business
time and effort to managing MAXIMUS’ performance under the Agreement, (2) serve
as the single point of accountability in Austin, Texas for the Agreement, (3) conduct
daily informal briefings with Accenture regarding the status of the Project,
and (4) have full decision-making authority and responsibility for MAXIMUS’
fulfillment of its contractual obligations. MAXIMUS shall obtain approval of
the final candidate for the MAXIMUS Local Site Executive within thirty (30)
days and have such candidate in place within forty-five (45) days from the
Amendment Effective Date. Until such time as the MAXIMUS Local Site Executive
is in place, Bruce Caswell shall act in such capacity.

(ii)                                  CHIP Operations Lead. MAXIMUS shall obtain
approval of the final candidate for the MAXIMUS CHIP Operations Lead within
thirty (30) days and have such candidate in place within forty-five (45) 

 8
 

 

                                                days from the Amendment Effective Date. Until
such time as the MAXIMUS CHIP Operations Lead is in place, Melinda Metteauer
shall act in such capacity.

Accenture
personnel shall be entitled to fully rely on all decisions made by the MAXIMUS
Key Personnel related to his or her respective area of responsibility.

4.7.1.4                           MAXIMUS agrees to use all commercially reasonable efforts to improve
attrition rates and fill open positions in a timely manner. MAXIMUS shall
report accurate information in the form attached hereto as Exhibit 4.7.1.4,
provide any supplemental detail required to support or explain changes or
variations from prior reports,  explain
attrition rates above forecast, document progress regarding each open
management, supervisory or transition position that has remained unfilled for
more than thirty (30) days and communicate all planned rolloffs of management,
supervisory and transition staff at least forty-five (45) days prior to such
occurrence. All reports in Exhibit 4.7.1.4 shall be provided by
MAXIMUS on a weekly basis except the Diversity Report, which shall be provided
on a monthly basis, and the San Antonio Turnover by Job report, Recruiting
Status report, Recruiting Opportunities report, and IT 66-67 report, each
of which shall be provided on a weekly basis for a period of three (3) months
following the Amendment Effective Date and shall be provided on a monthly basis
thereafter; provided, however, that such reports shall be resumed on a weekly
basis in the event MAXIMUS is subject to a cure notice or corrective action
pertaining to staffing or human resources issues. In addition, MAXIMUS agrees
to provide internal human resources support at a 1:150 ratio +/- 10% to meet
employee relations issues, retention and attrition, planning and forecasting.”

h.             Training. In order to allow Accenture to address
specific concerns regarding MAXIMUS training performance as set forth in the
Cure Notice and Letter Agreement, Section 5.5 is hereby deleted in
its entirety and replaced with the following:

“5.5                           Accenture and MAXIMUS agree to provide the
Project training staff to operate as an integrated team as identified in Exhibit 5.5A,
subject to the following conditions:

5.5.1                        The integrated training team shall operate
under the direction and supervision of Accenture.

5.5.2                        MAXIMUS may present candidates to fill
positions designated for Accenture. Accenture will not unreasonably reject
qualified candidates who are able to fill positions in a timely manner, and
will provide reason(s) for rejection in writing. Costs for positions
filled by MAXIMUS staff shall be credited against Cover Costs.

 9
 

 

5.5.3                        Notwithstanding Section 5.9,
MAXIMUS shall promptly replace those MAXIMUS employees or subcontractors
performing Project training functions who Accenture identifies in writing as
not qualified or not meeting reasonable performance standards for training, along
with the reasons therefor.

5.5.4                      If MAXIMUS fails after notice to the MAXIMUS
Local Site Executive to promptly fill positions designated for MAXIMUS,
Accenture may fill those positions until MAXIMUS presents qualified candidates.

5.5.5                        The organization and staffing levels
reflected in Exhibit 5.5A are based on the current scope and
delivery schedule for the interim and end-state technology and process
solutions and are subject to re-evaluation if the scope or schedule changes.

5.5.6                        All responsibility for training development
and delivery for Texas Access Alliance operations personnel reverts to MAXIMUS
on March 1, 2007 for development and May 1, 2007 for delivery
pursuant to mutually agreed transition plans.

5.5.7                        MAXIMUS shall be financially responsible for
all Cover Costs incurred by Accenture in connection with the development and
provision of required training and certifications to MAXIMUS’ employees and
subcontractors engaged in the Project. An estimate of training Cover Costs is
presented in Exhibit 7.2A.”

i.              Setoff of Cover Costs; Audit Rights. In order to
confirm the method by which Cover Costs will be applied to amounts payable to
MAXIMUS under the Agreement and MAXIMUS’ rights to receive certain related
information, new Sections 7.6.1 and 7.6.2 are hereby inserted as
follows:

“7.6.1                  Setoff of Cover Costs. With respect to any amount to be paid or
reimbursed by Accenture to MAXIMUS under the Agreement, Accenture may set off
against such amounts any Cover Costs incurred by Accenture. If the amount of
Cover Costs in a month exceeds the amounts payable by Accenture to MAXIMUS, the
excess amount of Cover Costs shall be carried forward into succeeding months
and applied against amounts otherwise payable to MAXIMUS in such succeeding
months until such excess Cover Costs have been fully applied. Accenture will
not be required to pay any disputed amounts to MAXIMUS under this Agreement
unless and until the dispute is resolved and in accordance with the resolution
of the dispute. Notwithstanding the foregoing, MAXIMUS shall have no obligation
to make payment on any disputed Cover Costs that were not subject to setoff
rights as described in this Section 7.6.1.

7.6.2                        Certain Audit Rights. For any Cover Costs incurred by Accenture,
on a monthly basis, Accenture shall provide MAXIMUS with (i) timesheets
supporting the hours incurred by Accenture personnel and subcontractors
providing services included in the Cover Costs, including an indication of the
job category that the person is filling, as indicated in the schedules 

 10
 

 

                                                provided under Exhibit 7.2A, and (ii) descriptions
of the deliverables produced in such month. Copies of the deliverables or other
work product shall be provided upon reasonable request by MAXIMUS. Additionally,
upon reasonable request, Accenture shall provide MAXIMUS with additional (i) supporting
information with transparency reasonably sufficient to demonstrate the metrics
of service volumes, productivity and resource levels directly represented by
such Cover Costs (including information reasonably necessary to verify the
quantity of hours expended by Accenture that provide the basis for Cover Costs
setoff by Accenture in any month) and (ii) the opportunity to provide
suggestions and other input to Accenture regarding optimization and management
of such Cover Costs (including comparative benchmarks against MAXIMUS’ internal
processes). The escalation process provided in Section II of Exhibit 3.8
shall govern any issue with respect to issues or questions raised by MAXIMUS
regarding Accenture’s incurrence of such Cover Costs. Notwithstanding the
foregoing or any other provision hereof, in no event shall MAXIMUS have the
right to review Accenture’s internal cost information. However, Accenture
represents that Cover Costs are calculated as described in the definition
provided herein.”

k.                                       Terms Applicable to Cure Periods. Section 8.1.2 (other than
subsections 8.1.2.1 - 8.1.2.13) is hereby deleted in its entirety and replaced
with the following:

“8.1.2                  Any one of the following events by MAXIMUS,
which is not cured within 20 calendar days (except as specified in Section 8.1.4
below or as otherwise extended by mutual written agreement of the Parties or as
extended by Accenture in its reasonable discretion if the State has extended a
related cure period applicable to Accenture) after receipt of written notice of
breach from Accenture:”

l.                                          Certain Events of Default. New Section 8.1.5 is hereby
inserted as follows:

“8.1.5                  In addition to the Events of Default
described above and notwithstanding Section 8.2, each of the
following shall be deemed to be an “Event of Default” for which Accenture may
exercise the rights set forth in this Agreement upon delivery of an appropriate
Notice to MAXIMUS; provided, however, that, notwithstanding Section 8.2
of the Agreement, such Notice shall be effective upon delivery to MAXIMUS and
shall not afford MAXIMUS with any opportunity to cure (except as described in Section 8.1.5.1):

8.1.5.1                           While under any Corrective Action Plan developed in accordance with the
Prime Contract, and subject to the governance provisions set forth in Exhibit 3.8,
MAXIMUS fails, within the time period specified in the applicable Corrective
Action Plan (or if no time is specified therein, within a time period
reasonably specified by Accenture), to use good faith efforts to comply with a
material portion of such Corrective Action Plan, provided however, that an
Event of Default under this Section 8.1.5 shall not occur if,
MAXIMUS initiates such good faith efforts within forty-eight (48) hours from
the receipt of Notice by 

 11
 

 

                                                            the MAXIMUS Local Site Executive. The
opportunity to initiate such good faith efforts within 48 hours shall only
apply to the first instance of failure under this Section 8.1.5.1
and for any subsequent failures hereunder, MAXIMUS shall not be entitled to
such opportunity; or

8.1.5.2                           MAXIMUS fails to correct and cure any of the MAXIMUS performance
deficiencies identified in Exhibit 8.1.5.2 by the applicable
deadline set forth on such Exhibit. Any such deficiency that the Parties
mutually agree in writing has been cured shall not be subject to the terms of
this Section 8.1.5 for any subsequent breach and shall be entitled
to the appropriate cure period set forth in the Agreement.

3.                                       Agreement. In
addition to the amendments to the Agreement set forth above in Sections 1
and 2 of this Amendment, the Parties agree as follows, which agreements
shall be incorporated by reference into, and made a part of, the Agreement:

a.                                       Transition of Responsibility for Technology
Development Services.

(i)            Beginning
on the Amendment Effective Date, the Parties shall begin transitioning
operational responsibility for the performance of the Technology Development
Services to Accenture in accordance with the transition plan (the “Technology
Development Transition Assistance Plan”) attached hereto as Attachment A
(the “Technology Development Transition”). Each of the Parties shall comply
with its responsibilities as outlined in the Technology Development Transition
Assistance Plan.

(ii)           Following
the completion of the Technology Development Transition in accordance with the
Technology Development Transition Assistance Plan and provided that MAXIMUS
provides Accenture with reasonable assistance (including, without limitation,
all assistance reasonably requested by Accenture) in respect of Accenture’s
efforts, MAXIMUS shall be relieved of its obligations to provide the Technology
Development Services to Accenture as of and after the completion of transition
of the Technology Development Services to Accenture (the “Technology
Development Transition Date”). MAXIMUS shall retain responsibility for (1) all
operations that comprise the Technology Development Services prior to the
Technology Development Transition Date, including, without limitation, the
performance of the Technology Development Transition, (2) the development,
support, and maintenance of the MAXe software for Enrollment Broker and CHIP,
and (3) all break/fix maintenance obligations and related activities for
the MAXe software for periods after March 31, 2007. In addition, MAXIMUS
must continue to dedicate those MAXIMUS employees identified in the Technology
Development Transition Assistance Plan (or their qualified replacements) to
MAXIMUS’ performance of its obligations with respect to the Technology
Development Services; provided, however, that MAXIMUS may not reassign such
employees without Accenture’s prior written consent. From and after the
Technology Development Transition Date, failure to provide reasonable
assistance to Accenture in respect of Accenture’s performance of the Technology
Development Services shall be deemed to be a material breach pursuant to Section 8.1
of the Agreement.

 12
 

 

Notwithstanding the transfer of
operational responsibility for the Technology Development Services to Accenture
as specified above or any statement to the contrary, MAXIMUS shall continue to
bear financial responsibility for the Cover Costs associated with Accenture’s
performance of the Technology Development Services as such costs are calculated
pursuant to Exhibit 7.2A of the Agreement.

(iii)          Accenture
shall provide up to 2 full-time equivalents (FTE’s) to MAXIMUS for operational
reporting and analysis during the period from the Amendment Effective Date
until January 31, 2007. From February 1, 2007 until March 31,
2007, Accenture shall make only 1 FTE available to MAXIMUS for such reporting
and analysis functions.  MAXIMUS shall
pay for such resources as Cover Costs.

(iv)          Without
limiting any obligations hereunder, the Parties shall take commercially
reasonable steps to conduct the Technology Development Transition in a manner
that does not impede MAXIMUS’ progress to correct its performance as described
in this Amendment. During the Technology Development Transition, MAXIMUS shall
take commercially reasonable steps to mitigate the impact of attrition,
absenteeism or performance decline. Notwithstanding any such occurrence or
steps taken to mitigate the same, each Party shall remain responsible for
performing all of its respective responsibilities throughout the Technology
Development Transition.

(v)           Subject
to reimbursement as a Cover Cost, Accenture shall provide facilities for the
Technology Development Services.

(vi)          Following
the three-month anniversary of the Technology Development Transition Date, if
MAXIMUS’ provision of reasonable assistance to Accenture in connection with
Accenture’s performance of the Technology Development Services exceeds the
MAXIMUS staffing plan for the applicable month (exclusive of reasonable phone
or email inquiries or requests for similar de minimis cooperation), Accenture
shall deduct the incremental personnel charges incurred by MAXIMUS beyond those
in the plan from such month’s Cover Costs.

(vii)         Representatives
from both Parties shall meet on a periodic basis to discuss the priorities
applicable to each Party’s performance under this Section 3(a),
with the initial priorities to include (i) support of current operational
productivity and (ii) improvement of operational productivity. During
Accenture’s performance of the Technology Development Services, Accenture shall
provide periodic schedule and status reporting to MAXIMUS regarding scope and
schedule of MAXe version releases.

(viii)        The
Parties acknowledge and agree that the Technology Development Services as
defined in the staffing plan in Attachment A are provided based upon a
jointly developed work plan to address the scope outlined in Exhibit 2.1A.

If the Parties agree to modify scope as
pursuant to the provisions of Section 3.8 and such modification
increases or decreases the level of effort necessary to complete Accenture’s
performance of the Technology Development Services, the 

 13
 

 

Parties shall equitably adjust the
associated Cover Costs set forth on Exhibit 7.2A to reflect the
modified scope.

(ix)           Where
MAXIMUS personnel designated in Attachment A are scheduled to work
full-time, such personnel shall not be staffed or proposed on any other MAXIMUS
project, unless otherwise agreed in writing by Accenture.

b.                                      Transition of Responsibility for Complaints
and Appeals Services.

(i)            Beginning
on the Amendment Effective Date, Accenture shall assume operational
responsibility for, and begin performing, the Complaints and Appeals Services.

(ii)           Provided
that MAXIMUS provides Accenture with reasonable assistance (including, without
limitation, all assistance reasonably requested by Accenture) in respect of
Accenture’s efforts, MAXIMUS shall be relieved of its obligations to provide
the Complaints and Appeals Services to Accenture as of and after the Amendment
Effective Date. MAXIMUS shall retain responsibility for all operations that
comprise the Complaints and Appeals Services prior to the Amendment Effective
Date. Failure to provide reasonable assistance to Accenture in respect of
Accenture’s performance of the Complaints and Appeals Services shall be deemed
to be a material breach pursuant to Section 8.1 of the Agreement. Notwithstanding
the transfer of operational responsibility for the Complaints and Appeals
Services to Accenture as specified above or any statement to the contrary,
MAXIMUS shall continue to bear financial responsibility for the Cover Costs
associated with Accenture’s performance of the Complaints and Appeals Services
as such costs are calculated pursuant to Exhibit 7.2A of the
Agreement.

(iii)          If
MAXIMUS’ provision of reasonable assistance to Accenture in connection with
Accenture’s performance of the Complaints and Appeals Services exceeds the
MAXIMUS staffing plan for the applicable month (exclusive of reasonable phone
or email inquiries and requests for similar de minimis cooperation), Accenture
shall deduct the incremental personnel charges incurred by MAXIMUS beyond those
in the plan from such month’s Cover Costs. Additionally, MAXIMUS may present
candidates to fill positions designated for Accenture. Accenture will not
unreasonably reject such qualified candidates who are able to fill positions in
a timely manner, and will provide reason(s) for rejection in writing.

(iv)          Subject
to MAXIMUS’ provision of reasonable assistance in support of Accenture’s
performance of the Complaints and Appeals Services as provided in this Section 3(b),
Accenture, rather than MAXIMUS, shall have primary responsibility for Key
Performance Requirements numbered 12, 26, 27, 98, or 104 as documented in the
Prime Contract and applicable to the Complaints and Appeals Services performed
by Accenture after the Amendment Effective Date. The provisions of Section 6.1
of the Agreement regarding joint responsibility and apportionment of liability
shall continue to apply with respect to failures of such Key Performance
Requirements.

 14
 

 

(v)           Following
Stable Performance of the Complaints and Appeals Services, the Parties shall
meet and discuss in good faith the possibility to transition the Complaints and
Appeals Services back to MAXIMUS. Any such agreement shall be documented in an
amendment to the Agreement and shall be designed to effect such transition in a
manner that minimizes any negative impact on the Project.

c.                                       Accenture Cover Costs Incurred To Date. At the Amendment Effective Date, Accenture
shall setoff the amount specified for “Activities prior to May 3, 2006” on
Exhibit 7.2A against the next succeeding amounts otherwise payable
to MAXIMUS in respect of Cover Costs incurred by Accenture with respect to
resources provided to assist MAXIMUS prior to May 3, 2006.

d.                                      Special Terms Associated with Transitioned
Services.

(i)            License
to MAXIMUS Software. In addition to the license provided to Accenture
pursuant to Section 11.2.2 of the Agreement and notwithstanding
anything to the contrary contained in Article 11 of the Agreement,
or elsewhere in the Agreement, MAXIMUS hereby grants to Accenture a
non-exclusive, sublicenseable (as provided below), fully-paid up, license for
the term of the Prime Contract (including any amendments, extensions, renewals
or replacements thereof) to use, copy, display, modify, maintain, and create
derivative works of the MAXIMUS Software (in both source and object code form)
and any modifications, enhancements, derivative works, development tools and
documentation related thereto solely for Accenture’s performance of the Project.
Upon written notice to MAXIMUS, Accenture may (i) sublicense the MAXIMUS
Software to a third-party to which Accenture has subcontracted some or all of
its obligations under the Prime Contract and (ii) assign or otherwise
transfer the license to the MAXIMUS Software to any successor entity that
acquires or succeeds to Accenture’s rights or obligations under the Prime
Contract by operation of law or otherwise, provided, that such third party (i) adheres
to all use restrictions relating to such MAXIMUS Software set forth in the
Agreement, (ii) agrees to be bound in writing to confidentiality
obligations substantially as set forth in the Agreement. On the Amendment
Effective Date or as soon as practicable thereafter, MAXIMUS shall deliver to
Accenture copies of such versions of the MAXIMUS Software, development tools
and documentation that Accenture requires to meet its obligations under the
Prime Contract or as otherwise requested by Accenture.

 (ii)          Third-Party Software Licenses. As
part of MAXIMUS’ obligations with respect to the Transitioned Services, MAXIMUS
shall identify third-party software licenses that pertain to the Transitioned
Services and provide copies of the applicable license agreements. Upon request
by Accenture, MAXIMUS shall take all reasonable steps, consistent with the
terms of the applicable license agreement, to assign such licenses to
Accenture, including payment of any fees due the applicable third party. Except
for such licenses that are so assigned to Accenture, the forgoing shall not
limit MAXIMUS’ obligations to transfer the license of third party software to
the State at the conclusion of the Term of the Prime Contract. MAXIMUS
represents and warrants that it is not in breach of any of the license
agreements.

 15
 

 

(iii)          Use
of MAXIMUS Materials. As part of MAXIMUS’ obligations with respect to the
Transitioned Services, MAXIMUS shall provide Accenture with access to and
rights to use and modify any materials used by MAXIMUS to provide the Transitioned
Services prior to the Amendment Effective Date, including, without limitation,
CCR scripts, training manuals, policies and procedures, QA materials and
assessments, Job Aids, and related tools and documentation.

(iv)          Employees
and Subcontractors. As part of MAXIMUS’ obligations with respect to the
Transitioned Services, and notwithstanding Sections 5.1 or 5.4 of
the Agreement, Accenture (or its designated subcontractor) shall have the right
to (1) interview, make permanent or temporary offers of employment and
hire any employees of MAXIMUS that provided Transitioned Services other than
the MAXIMUS employees identified on Attachment B (collectively, the “Excluded
Employees”), so long as the Excluded Employees remain MAXIMUS employees, or (2) offer
to hire and hire any contractor or subcontractor of MAXIMUS that provided
Transitioned Services, and MAXIMUS shall provide Accenture with all assistance
necessary for Accenture to interview, make offers, and hire any of the MAXIMUS
employees, contractors and subcontractors described in the preceding sentence. MAXIMUS
agrees to make the Excluded Employees, as well as Jason Hughes and Dan Baxter,
available to Accenture on a full-time, dedicated basis for the 90-day
period following the Amendment Effective Date to assist in the Transitioned
Services. After the conclusion of such 90-day period, MAXIMUS shall cause
such MAXIMUS personnel to provide Project-related assistance to Accenture as
reasonably requested by Accenture. Within thirty (30) days of the Amendment
Effective Date, MAXIMUS shall provide an assessment of all employees of MAXIMUS
and its subcontractors that are presently providing the Transitioned Services.

e.                                       Status of Transitioned Services. Accenture’s agreement to perform its
obligations under this Amendment, including, without limitation, the
performance of the Transitioned Services and management and governance
activities with respect to the Call and Image Processing Services and the
Integrated Eligibility Transaction Processing Services, is made solely to
address certain issues identified in the Cure Notice, and, without limiting the
provisions of this Agreement, including Section 6.1 of the Agreement
and Section 2.4.5 as revised in this Amendment, MAXIMUS shall have
no independent right of action for breach of contract against Accenture arising
out of Accenture’s performance or non-performance of the services for which
Cover Costs apply. However, nothing in this provision shall preclude or limit
any defenses otherwise available to MAXIMUS in response to any actions,
allegations or claims based upon Accenture’s performance or non-performance of
the services. By assuming certain tasks previously performed by MAXIMUS or
undertaking added supervisory responsibilities as described herein, on either a
temporary or ongoing basis, Accenture does not undertake to assume any MAXIMUS
liability for the status of such services as of the Amendment Effective Date
(for supervisory resources) or the applicable Transition Date (for Transitioned
Services).

 16
 

 

f.                                         Effect of Transitioned Services on Key
Performance Requirements.

(i)            The
Parties acknowledge that the measurement of certain MAXIMUS Key Performance
Requirements may depend upon Accenture’s performance of the Transitioned
Services. In the event of a failure of a Key Performance Requirement, the
Parties shall conduct a formal root cause analysis to determine the allocation
of responsibility for such failure, and MAXIMUS’ applicable Liquidated Damages
shall be proportionately reduced to reflect each party’s determined responsibility;
provided, however, that MAXIMUS shall retain financial responsibility for any
Key Performance Requirement failures primarily resulting from the components of
MAXe identified in Section 2.4.5.3 of the Agreement (as determined
pursuant to a root cause analysis).

(ii)           If
MAXIMUS fails to achieve Key Performance Requirements 21, 22, 23, 24 and 25,
Accenture shall have the right to assess the applicable Liquidated Damages for
such KPRs without regard to whether Liquidated Damages have been assessed by
HHSC, up to an aggregated monthly amount of $30,000. If Accenture assess such
Liquidated Damages, MAXIMUS shall have the option to either pay the Liquidated
Damage to Accenture or apply such amounts to remedial efforts necessary to
correct deficiencies in performance of the applicable KPR. If HHSC subsequently
assesses Liquidated Damages for such KPRs, MAXIMUS shall have the right to set
off any Liquidated Damages paid to Accenture against the amounts assessed by
HHSC for which MAXIMUS is determined to be responsible.

g.                                      Opportunities to Mitigate Cover Costs. For all Services under this Agreement for
which MAXIMUS has an obligation to pay Cover Costs, MAXIMUS shall have the
opportunity to communicate with Accenture about possibilities to mitigate such
Cover Costs, subject to the right of Accenture to reject any proposals that it
reasonably and in good faith believes would have a negative impact on the
ability of the Parties to comply with the terms of the Prime Contract. Accenture
shall use commercially reasonable efforts to mitigate the Cover Costs. Every
three months or more frequently in response to any material change to the
Project, the Parties shall meet to examine staffing levels and ratios
associated and other potential opportunities to reduce Cover Costs. In such
meetings MAXIMUS shall propose reductions in staffing and related costs that
would not diminish the performance of the applicable Services and Accenture
shall take reasonable steps to comply with such proposals. When any Service for
which MAXIMUS has a Cover Cost obligation achieves Stable Performance, the
Parties will meet to determine appropriate steps to reduce Cover Costs while
maintaining Stable Performance.

h.                                      Incentive Plan. In order to appropriately incent MAXIMUS to
improve performance on a continuing basis, the Parties agree to employ the
following incentive structure (the “Incentive Plan”), which shall begin on July 1,
2006:

(i)            The
parties will jointly establish an incentive fund, as further described below,
to be funded in the amount of $125,000 each month (“Incentive Fund”).

(ii)           Each
Party shall contribute to the Incentive Fund. Initially Accenture’s
contribution shall be 20% and MAXIMUS’ contribution shall be 80%. For each
month that MAXIMUS achieves all of the Performance Objectives, 

 17
 

 

Accenture shall contribute an
additional 5% of the Incentive Fund for subsequent months, up to a maximum of
50%. For purposes of illustration, if MAXIMUS achieved the Performance
Objectives in each of the first three months, the contribution to the Incentive
Plan for month four shall be 35% by Accenture and 65% by MAXIMUS.

(iii)          On
a monthly basis, no later than the 15th of the prior month, the Accenture
Project Director will specify four (4) performance objectives (“Performance
Objectives”) for services within MAXIMUS’ scope of work and within MAXIMUS’
control to be achieved during the subsequent month, and establish a measurable
and reasonable level of performance and/or discrete outcome for each
Performance Objective (the “Performance Criteria”).

(iv)          The
Accenture Project Director will identify one (1) one of the Performance
Objectives as “Primary”, which is assigned a value of $50,000 and three (3) of
the Performance Objectives as “Priority”, which are each assigned a value of
$25,000.

(v)           At
the conclusion of each month, MAXIMUS’ performance of each of the Performance
Objectives will be evaluated against the applicable Performance Criteria. The
value of each Performance Objective successfully achieved will be summed to
determine the total value for the month. MAXIMUS’ total contribution for the
month will be subtracted from the total value to determine the incentive amount
earned for the month. For purposes of illustration, if MAXIMUS contributed
$100,000 in a given month and achieves the Primary Objective, and 2 Priority
Objectives, the amount earned for the month would be $0 (($50,000 + 2 *
$25,000) - $100,000).

(vi)          On
a quarterly basis, the total incentive amount earned by MAXIMUS during the
prior 3 months will be computed by adding the monthly incentive amounts earned.
The final amount, will be included in the invoice for the following month and
will be added (if the final amount is positive) or set-off (if the final amount
is negative), as applicable, to any amounts payable to MAXIMUS.

(vii)         If
during any month the Parties mutually agree that a Performance Objective is no
longer applicable for that month or performance of the Performance Objectives
is prevented by factors beyond MAXIMUS’ reasonable control and for which
MAXIMUS does not have an obligation, then the Incentive Plan shall not apply to
such Performance Objective for that month. The applicable amount for such
Performance Objective shall be remitted to the Parties in amounts based on
their respective contribution percentages. For purposes of illustration, if
HHSC takes acts that prevent MAXIMUS from performing a Priority Objective and
Accenture’s contribution percentage for the applicable month is 40%, then the
Incentive Fund for that month shall be reduced by $25,000, with $15,000 credited
to MAXIMUS and $10,000 credited to Accenture.

(viii)        Failure
to achieve any of the Performance Objectives shall not be determinative in any
root cause analysis with respect to any of the KPRs. All amounts set-off by
Accenture will be credited to MAXIMUS in the event the client 

 18
 

 

assesses Liquidated Damages for
failures of KPRs related to the failed Performance Objectives.

(ix)           If
MAXIMUS reasonably believes that a designation of Performance Objectives and/or
Performance Criteria does not comply with the requirements of Section (iii) above,
such dispute shall be escalated to the Executive Committee for resolution
pursuant to Section II(b) of Exhibit 3.8.

(x)            Between
October 1, 2006 and October 6, 2006, the Executive Committee shall
meet to evaluate the effectiveness of the Incentive Plan as a tool to incent
performance that promotes the success of the Project and recommend any changes
that may further promote such objective. Any such changes must be mutually
agreed by the Parties.

(xi)           The
initial Performance Objectives to apply in the month of July, 2006 will be
established by June 26, 2006 and, upon completion, shall be incorporated
herein.

4.                                       Exhibits. The
following exhibits are attached hereto as each is added to the Agreement or
amended and restated in accordance with its terms:

	
  

  	
   

  	
  Exhibit 2.1A

  	
   

  	
  Scope of Transitioned Services

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Exhibit 2.10

  	
   

  	
  Status Report Template

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Exhibit 2.11

  	
   

  	
  Call and Image Processing Governance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Exhibit 3.8

  	
   

  	
  Additional Governance Principles

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Exhibit 4.7.1.4

  	
   

  	
  MAXIMUS HR Status Report Template

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Exhibit 5.4.1

  	
   

  	
  Project Organization Chart

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Exhibit 5.5A

  	
   

  	
  Training Organization Chart

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Exhibit 7.2A

  	
   

  	
  Cover Costs

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Exhibit 8.1.5.2

  	
   

  	
  Cure Schedule

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attachment A

  	
   

  	
  Technology Development Transition Plan

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attachment B

  	
   

  	
  Excluded Employees

  

 

In the event of a conflict between the
terms of any new or restated Exhibit under this Agreement and any Exhibit that
is not restated, the new or restated Agreement shall take precedence.

5.                                       Reaffirmation. The
Agreement, as amended and as provided herein, and all other documents executed
in connection therewith shall remain in full force and effect, and Accenture
and MAXIMUS hereby restate and reaffirm all of the terms and conditions of

 19
 

 

the Agreement, as amended, and such
other documents. Nothing in this Amendment shall act as a waiver of any right
or remedy of either Party, including, without limitation, Accenture’s rights
under Article 10 [Step-In] of the Agreement, and neither Party is
excused from performance of any contractual obligation, except in each case as
expressly provided in this Amendment. Nothing in this Amendment shall be
construed as a Party making an admission of fault or liability. Neither the execution
of this Amendment, nor payment of Cover Costs as they are defined herein, shall
constitute a waiver of or limitation on the rights of either party to assert
any claims of damages or pursue any other remedy at law or in equity in
connection with the subject matter if this Amendment or any other matters
arising from or relating to the Agreement.

6.                                       Integration. This
Amendment represents the entire amendment to the Agreement between the Parties,
and supersedes any prior documents or discussions with respect to amending the
Agreement, including prior drafts hereof and the Letter Agreement.

7.                                       Counterparts. This
Amendment may be executed in any number of counterparts, each of which shall be
considered an original for all purposes, and all of which when taken together
shall constitute a single counterpart. Executed signature pages to any
counterpart may be detached and affixed to a single counterpart, with such
single counterpart with multiple executed signature pages affixed thereto
constituting the original counterpart. All of those counterpart pages shall
be read as though one, and they shall have the same force and effect as if all
the signers had executed a single signature page.

IN WITNESS WHEREOF, the parties hereto
have executed this Amendment as of the date first written above.

	
  ACCENTURE LLP

  	
    MAXIMUS, INC.

  
	
   

  	
   

  
	
  By:

  	
   

  	
    By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
    Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
    Title: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
    Date:

  	
   

  

 

 

 

 

 

[Signature
page to Subcontract Amendment]

 20

 

[NOTE: certain exhibits have been omitted from this
document as filed. the registrant agrees to furnish SUPPLEMENTALLY to the
commission upon request a copy of such exhibits.]

 

Exhibit 7.2A

Cover Charges

	
  Area

  	
   

  	
  Charges

  	
   

  	
  Per

  	
   

  	
  Period

  	
   

  	
  Conditions

  
	
  Complaints & Appeals

  	
   

  	
  $40.00

  	
   

  	
  hour

  	
   

  	
  June 1, 2006 to completion of IE rollout + 3
  months

  	
   

  	
  MAXIMUS shall be responsible for paying the actual
  cost up to the ‘Monthly Benchmark Headcount’, at the average hourly rate. The
  ‘Monthly Benchmark Headcount’ will be computed as the sum of the following
  headcount calculations: 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  - The actual number of CHIP complaints/appeals
  processed during the month divided by the CHIP Productivity Rate; and,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  - The actual number of Integrated Eligibility
  complaints/appeals processed during the month divided by the IE Productivity
  Rate Initially, the productivity rates shall be:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  - IE Productivity Rate: 111 processed per FTE-month
  (assumes 60 minute average handle time),

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  - CHIP Productivity Rate: 256 processed per FTE-month
  (assumes 26 minute average handle time). Productivity rates shall be reviewed
  quarterly and revised if supported by actual productivity data. Credits
  against Cover Costs shall be applied for any Complaints & Appeals
  positions filled by MAXIMUS.

  

 

 

 

	
  

  	
   

  	
  fixed monthly charge

  	
   

  	
  month

  	
   

  	
  Completion of IE rollout + 4 months to end of
  contract or transition of services back to MAXIMUS

  	
   

  	
  Benchmarked upon completion of IE rollout against
  statewide volumes, productivity rate at that time, and $40/hour rate, with
  productivity increase of 5% annually thereafter, and credit applied for
  positions staffed by MAXIMUS

  
	
  Technology Development

  	
   

  	
  $4,961,551

  	
   

  	
  paid monthly according to attached payment schedule

  	
   

  	
  May 3, 2006 to March 31, 2007

  	
   

  	
   

  
	
  Call & Image Processing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Command Center

  	
   

  	
  $137,223

  	
   

  	
  monthly

  	
   

  	
  June 1, 2006 to end of contract or transition of
  services to MAXIMUS subject to criteria documented in Exhibit 2.11

  	
   

  	
  To be prorated to reflect any roles no longer required
  or transitioned to MAXIMUS subject to terms of Exhibit 2.11. Projected
  timetable attached.

  
	
   

  	
   

  	
  $64,223

  	
   

  	
  monthly

  	
   

  	
  Monthly costs
  once all expected roles are transitioned to MAXIMUS subject to terms of
  Exhibit 2.11

  
	
  Midland Stabilization

  	
   

  	
  $136,934

  	
   

  	
  monthly

  	
   

  	
  June 1, 2006 to achievement of criteria
  documented in Exhibit 2.11

  	
   

  	
  Prorated to reflect any roles no longer required as
  documented in Exhibit 2.11. Projected timetable attached.

  
	
  Call Center Launch

  	
   

  	
  $80,387

  	
   

  	
  monthly

  	
   

  	
  Launch of new center to achievement of criteria
  documented in Exhibit 2.11

  	
   

  	
  Prorated to reflect any roles no longer required as
  documented in Exhibit 2.11. Projected timetable attached.

  
	
  Quality Assurance/Vendor Management

  	
   

  	
  $50,201

  	
   

  	
  monthly

  	
   

  	
  June 1, 2006 to end of contract or until critera
  are met as documented in Exhibit 2.11

  	
   

  	
   

  
	
  Supplemental Management and

  Operations Assistance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Activities prior to May 3, 2006

  	
   

  	
  $650,000

  	
   

  	
  one time

  	
   

  	
   

  	
   

  	
   

  
	
  Operational troubleshooting and

  HHSC Benefits Office support

  	
   

  	
  $1,633,111

  	
   

  	
  paid monthly according to attached payment schedule

  	
   

  	
  May 2, 2006 through August 31, 2006

  	
   

  	
   

  
	
  Training Services

  	
   

  	
  $3,688,882

  	
   

  	
  paid monthly according to attached payment schedule

  	
   

  	
  June 1, 2006 to April 30, 2007

  	
   

  	
  As incurred cost for roles agreed in integrated
  organization, to be increased by services required if Maximus fails to
  deliver timely and skilled resources to develop and conduct curriculum, to be
  credited for any planned Accenture roles staffed by MAXIMUS or if specific
  roles are mutually agreed to be no longer necessary due to changes in
  circumstances

  

 

 

Exhibit
8.1.5.2

Cure Schedule

	
  Nbr

  	
   

  	
  Cure Item

  	
   

  	
  Completion Date

  	
   

  	
  Key Accomplishments

  	
   

  	
  Next Steps / Milestones

  
	
  1

  	
   

  	
  ·   Comply
  with KPRs 21 and 22

  	
   

  	
  7/31/2006

  	
   

  	
  ·   Demonstrated
  improvement on IE abandonment rate

  ·   Demonstrated
  improvement on IE call monitoring scores

  	
   

  	
  Next
  Steps

  ·   Conducting
  renegotiations with subcontractor for improved performance, including
  improved retention of staff

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ·   Complete
  training, including on-going gap training for deficiencies identified through
  QA process (ACN lead activity).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  ·   Define
  productivity measures for staff and tracking to those measures

  	
   

  	
  6/30/2006

  	
   

  	
  ·   Meeting
  interim productivity targets for backlog

  ·   Developed
  productivity measures for major functions in current operational model

  ·   Deployed
  productivity analyst resources to validate existing measures

  	
   

  	
  Next Steps

  ·   Refine
  productivity targets

  ·   Draft
  operating procedure for conducting and validating monitoring process

  ·   Validate
  existing monitoring processes and data sources

  ·   Continue to
  monitor productivity by staff member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ·   Action low
  performance

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ·   Post
  productivity results

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  ·   Secure access
  for Application

  	
   

  	
  6/30/2006

  	
   

  	
  ·   Process for
  gaining system access 

  	
   

  	
  Next Steps

  
	
   

  	
   

  	
      Processing
  staff to specific system functions and business processes required to meet
  processing requirements

  	
   

  	
   

  	
   

  	
      for
  new hire process is documented and communicated to those responsible for
  processing the requests

  ·   New hires receiving appropriate access at
  time of orientation

  ·   Responsible persons identified for access
  requests

  	
   

  	
  ·   Provide
  information to the State by 6/16/06 on staff needing system access

  ·   Projected
  completion by 6/28/06 for State to complete processing

  ·   Task complete
  (and dependent) upon notification by State that the Sate has provided the
  requested access

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ·   Survey of staff completed to determine if
  existing staff have the required access, by job function

  	
   

  	
   

  

 

 1
 

 

Exhibit
8.1.5.2

Cure Schedule

 

	
  Nbr

  	
   

  	
  Cure Item

  	
   

  	
  Completion Date

  	
   

  	
  Key Accomplishments

  	
   

  	
  Next Steps / Milestones

  
	
  4

  	
   

  	
  Demonstrate compliance with relevant operational KPRs
  relating to accuracy of eligibility outcomes for applications and
  recertifications, including KPRs 2 and 3.

  	
   

  	
  For the first
  monthly measurement period ending 60 days after resumption of transaction
  processing. Note: Resumption of transaction processing means continuous
  processing of a subset (not sample) of pilot regaion IE transactions.

  	
   

  	
  ·   Significant
  progress was made regarding the assessment of the current QA system with an
  initial set of programming changes outlined to fix existing reporting.

  ·   Some progress
  was made regarding development of a Work Plan to finalize QA system. (There
  are some dependencies on ACN regarding finalization of plan including their
  acceptance of reports as defined.)

  ·   Consultant
  was obtained to validate system design and provide recommendations for
  improvement in operations and reporting.

  ·   Two new QA
  Specialists started June 12, 2006.

  ·   Three
  additional hires will begin work between June 19 and July 1, 2006.

  	
   

  	
  Next Steps

  ·   Continue
  implementation of new “VS Model” in San Antonio concurrent with policy
  training initiative

  ·   Work with
  Accenture monitoring and systems staff to ensure production reporting under
  new model accurately captures accuracy measures

  ·   Begin the
  Pilot process intake to demonstrate Accuracy through disposition

  ·   Implement
  reporting to demonstrate compliance with accuracy as part of Pilot Process
  restart.

  ·   Continue with
  QA process and system improvements and implementation as described in
  Nbr. 4.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Process all Medicaid, TANF, and Food Stamp
  applications and renewals/recertifications, including forwarding all
  applications, renewals or other cases requiring State review to State for
  determination, within contractually-required timeframes for all relevant
  KPRs, including 87, 88,89,90,97,99,102 and 105.

  	
   

  	
  For the first
  monthly measurement period ending ending 30 days after resumption of
  transaction processing. Note: Resumption of transaction processing means
  continuous processing of a subset (not sample) of pilot region IE
  transactions

  	
   

  	
  ·   Prior to
  implementing the Interim Process, IE processing demonstrated the ability to
  push documents into MI within 3 business days

  ·   QA/QC reviews
  of timeliness of processing of back log support KPR compliance — but must be
  proven through resumed pilot area operations.

  	
   

  	
  Next Steps

  ·   Continue
  implementation of new “VS Model” in San Antonio concurrent with policy
  training initiative

  ·   Work with
  Accenture monitoring and systems staff to ensure production reporting under
  new model accurately captures timeliness measures

  ·   Begin the
  Pilot process intake to demonstrate timeliness through disposition

  ·   Implement
  reporting to demonstrate compliance with timeliness as part of Pilot Process
  restart.

  ·   Continue with
  QA process and system improvements and implementation as described in Nbr. 4.

  

 

 2
 

 

Exhibit
8.1.5.2

Cure Schedule

 

	
  Nbr

  	
   

  	
  Cure Item

  	
   

  	
  Completion Date

  	
   

  	
  Key Accomplishments

  	
   

  	
  Next Steps / Milestones

  
	
  6

  	
   

  	
  Achieve 95% accuracy for staff determination of
  necessity of MI letters, and confirmation that MI letters contain proper list
  of items that are missing per the current system design.

  	
   

  	
  7/31/2006

  	
   

  	
  ·   Developed SR
  57408 for MI Verification Report. Submitted SR to ACN for development on
  May 25, 2006

  ·   Significant
  progress was made on root cause analysis.

  ·   Some work was
  started on enhancement of existing QA Plan

  ·   Work Plan was
  started to implement expanded QA/QC efforts

  	
   

  	
  Next Steps

  ·   Receive MI
  Verification Report from ACN

  ·   Complete Root
  Cause Analysis of Failure

  ·   Finalize and
  implement plan to QA MI letters for timeliness and accuracy

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Implement all items required by the CAP for
  Integrated Eligibility Processing Services.

  	
   

  	
  Dates as
  specified by item in the CAP of record

  	
   

  	
  ·   Continued
  coordination related to CAP updates

  ·   CAP is at 86%
  complete according to most recent report

  	
   

  	
  Next Steps

  ·   Meet with
  Kristi Bradford to review Performance Report and recovery item status.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Execute QA activities as required in the approved KPR
  62 QA Plan, including volume of transactions monitored and feedback process
  to the operation for identified deficiencies. Also, review the monitoring
  tools with Accenture to verify they provide an accurate measure of the
  quality outcomes for processing.

  	
   

  	
  8/15/2006

  	
   

  	
  ·   The QA Plan
  was developed as required in KPR 62. The QA Plan includes feedback processes.

  ·   Staff have
  been hired to increase the number of transactions reviewed.

  	
   

  	
  Next Steps

  (Related to QA Process Improvement)

  ·   Ensure that
  QC/QA plan meet contractual requirements of monthly quality audit (i.e., KPR
  61), particularly with respect to sample size

  ·   Complete
  Assessment of QA/QC staffing to confirm and finalize organizational
  structure, staffing mix, staff location assignments and schedules of duties.

  ·   Develop and
  execute plan to finalize changes to existing QA system and processes

  ·   Review
  existing QA system reports and integrate any new QA/QC Management Report
  requirements into modified QA system.

  

 

MAXIMUS shall complete each of the items set forth in this Exhibit 8.1.5.2
by the specified date. If any of the above MAXIMUS responsibilities are
dependent upon performance of specific obligations of Accenture or the Client,
and the failure by Accenture or the Client to complete such interdependencies
cause MAXIMUS to fail to perform its obligation, then MAXIMUS shall not be
subject to an Event of Default for such non-performance until the
interdependent task is completed and the deadline set forth above shall be
extended by an equal amount of time as the delay caused by the Accenture or
Client non-performance.

 3

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