Document:

nlsnnv-ex101_87.htm

 

Exhibit 10.1

CONFIDENTIAL

 

CERTAIN INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. THE EXCLUDED TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS [**].

 

Final Execution Version

 

AMENDMENT NUMBER ONE

 

AMENDMENT NUMBER ONE, made and effective as of January 1, 2019 (the “SARA Amendment Number One Effective Date”), by and between TATA AMERICA INTERNATIONAL CORPORATION and TATA CONSULTANCY SERVICES LIMITED

(jointly, “TCS”) and THE NIELSEN COMPANY (US), LLC (“Nielsen”), modifies the Second Amended And Restated Master Services Agreement (the “Agreement”), dated as of January 1, 2017, among TCS and Nielsen.

 

WHEREAS, Nielsen and TCS mutually desire to amend the Agreement on the terms provided herein.

 

NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

 

	
1.
	
Amendment to Schedule C.

Schedule C (Charges) to the Agreement is deleted in its entirety and replaced with the new Schedule C (Charges), attached hereto.

 

	
2.
	
Addition of Schedule T (Transformation Initiatives).

A new Schedule T (Transformation) is added to the Agreement as provided in Schedule T, attached hereto. 

 

	
3.
	
Miscellaneous.

Except as amended by this Amendment Number One, the Agreement shall remain in effect without amendment. This Amendment is not intended to, and shall not, constitute a waiver or an accord and satisfaction by either Party of any breaches or defaults under the Agreement.

1

 

IN WITNESS WHEREOF, the Parties have each caused this Amendment Number One to be signed and delivered by their duly authorized representative.

 

	
THE NIELSEN COMPANY (US), LLC
	
 
	
TATA AMERICA INTERNATIONAL CORPORATION

	
By:
	
 
	
/s/ Dave Anderson
	
 
	
By:
	
 
	
/s/ Latesh Sewani

	
Name:
	
 
	
Dave Anderson
	
 
	
Name:
	
 
	
Latesh Sewani

	
Title:
	
 
	
CFO/COO
	
 
	
Title:
	
 
	
NA Finance Head

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
TATA CONSULTANCY SERVICES LIMITED

	
 
	
 
	
 
	
 
	
By:
	
 
	
/s/ Surya Kant

	
 
	
 
	
 
	
 
	
Name:
	
 
	
Surya Kant

	
 
	
 
	
 
	
 
	
Title:
	
 
	
President – North America Operations

 

 

 

2

 

Schedule C

(as of the SARA Amendment Number One Effective Date) Charges

1.MINIMUM & ANNUAL COMMITMENT AMOUNTS

1.1Establishing MCA and ACA.

(a)Nielsen agrees that during the Initial Term Nielsen and its Affiliates will purchase Services from TCS in an aggregate amount not less than the Minimum Commitment Amount provided in Section 1.1(b) of this Schedule C. Additionally, for each Calendar Year of the Initial Term, Nielsen agrees that it and its Affiliates will purchase Services from TCS in an aggregate amount not less than the Annual Commitment Amount for such year provided in Section 1.1(c) of this Schedule C. All Services shall count against both the Minimum Commitment Amount and the Annual Commitment Amount. There will be no Minimum Commitment Amount or Annual Commitment Amount after the Initial Term, including during any Extension Term(s) or Renewal Periods.

(b)The “Minimum Commitment Amount” (also known as the “MCA”) shall be One Billion Four Hundred Thirteen Million Dollars ($1,413,000,000). The revised MCA in the prior sentence shall be as of the SARA Amendment Number One Effective Date. If Nielsen has provided the notice required by Section 2.2(a) of the Agreement but if for whatever reason the Parties do not agree prior to the end of the Initial Term on a Renewal Term in accordance with Section 2.2(a) of the Agreement, the MCA will be reduced by [**]

(c)The “Annual Commitment Amount” (also known as the “ACA”) shall be Three Hundred Twenty Million Dollars ($320,000,000) per year for 2017 and 2018. For 2019 the ACA shall be Two Hundred Seventy Five Million Dollars ($275,000,000). For 2020 the ACA shall be Two Hundred Fifty Million Dollars ($250,000,000). For 2021, 2022, 2023, and 2024, the ACA shall be One Hundred Eighty Four Million Three Hundred Thousand Dollars ($184,300,000) per year (the “Part II ACA”). For 2025 the ACA shall be One Hundred Thirty Seven Million Eight Hundred Thousand Dollars ($137,800,000) per year (the “Part III ACA”). In all cases the ACA shall be subject to reductions after the SARA Amendment Number One Effective Date in accordance with Section 1.4 of this Schedule C. Notwithstanding the foregoing, the ACA shall be eliminated at such point, if any, that the MCA has been fully satisfied. No ACA shall apply in the Calendar Year in which the MCA is fully satisfied.

(d)Although Nielsen’s obligations shall not actually be satisfied until Nielsen pays the relevant Charges, the MCA and the ACA provided shall be calculated on the basis of amounts invoiced or accrued by TCS, even if billing or payment for such Services falls into the next Calendar Year. By way of example, Services delivered by TCS to Nielsen in December of a given year shall count against that year’s ACA even though they will not be billed or paid until the following year.

 

C-1

 

(e)The amounts of the MCA and the ACA provided in Sections 1.1(b) and 1.1(c) reflect and include the adjustments agreed by the Parties pursuant to the letter agreement, dated January 18, 2019, between them, a copy of which is attached as Exhibit A (Exhibit A – Amendment Number One).

1.2Charges Which Count Against the Minimum Commitment Amount and Annual Commitment Amount.

The following amounts shall count toward Nielsen’s fulfillment of the MCA and the ACA:

 

	
(a)
	
 
	
[**]

	
 
	
 
	
 

	
(b)
	
 
	
[**]

	
 
	
 
	
 

	
(c)
	
 
	
[**]

	
 
	
 
	
 

	
(d)
	
 
	
[**]

	
 
	
 
	
 

	
(e)
	
 
	
[**]

	
 
	
 
	
 

	
(f)
	
 
	
[**]

	
 
	
 
	
 

	
(g)
	
 
	
[**]

	
 
	
 
	
 

	
(h)
	
 
	
[**]

 

1.3Exclusions from MCA and ACA.

The following payments made by Nielsen shall not count toward fulfillment of the MCA or the ACA:

 

	
(a)
	
 
	
[**]

	
 
	
 
	
 

	
(b)
	
 
	
[**]

	
 
	
 
	
 

	
(c)
	
 
	
[**]

	
 
	
 
	
 

	
(d)
	
 
	
[**]

	
 
	
 
	
 

	
(e)
	
 
	
[**]

	
 
	
 
	
 

	
(f)
	
 
	
[**]

 

C-2

 

1.4Reductions to Minimum Commitment Amount and Annual Commitment Amount.

The MCA and the ACA shall each be reduced if (each of the following conditions to be applied separately, recognizing more than one condition may be applicable to the same event, however the same dollar impact shall only be counted once):

 

	
(a)
	
 
	
[**]

	
 
	
 
	
 

	
(b)
	
 
	
[**]

	
 
	
 
	
 

	
(c)
	
 
	
[**]

	
 
	
 
	
 

	
(d)
	
 
	
[**]

	
 
	
 
	
 

	
(e)
	
 
	
[**]

	
 
	
 
	
 

	
(f)
	
 
	
[**]

	
 
	
 
	
 

	
(g)
	
 
	
[**]

	
 
	
 
	
 

	
(h)
	
 
	
[**]

	
 
	
 
	
 

	
(i)
	
 
	
[**]

	
 
	
 
	
 

	
(j)
	
 
	
[**]

 

1.5Process to Determine Reductions to the Minimum Commitment Amount and the Annual Commitment Amount.

 

If Nielsen believes a circumstance described in Section 1.4 has occurred, the process provided in this Section 1.5 shall be used to determine how much the Minimum Commitment Amount and the Annual Commitment Amount shall be reduced. Any such reduction which takes effect prior to the end of 2020 shall be subject to Section 1.6(b) in 2021 and any such reduction which takes effect beginning in 2021 and prior to the end of 2024 shall be subject to Section 1.6(c) in 2025. The process is as follows:

(a)The parties will form a review committee (the “Review Committee”) comprised of an equal number of representatives of the Parties;

 

(b)If the issue is the circumstance provided in Section 1.4(a) or 1.4(b), Nielsen will provide written information on the requirements for the assignment covered by the respective SOW to the Review Committee, TCS may demonstrate whether TCS’ failure was excused pursuant to Section 8.7 of the Agreement and TCS will provide written information on why TCS failed to negotiate or agree to such SOW or comply with requirements contained in such SOW;

 

(c)The Review Committee shall adjust the ACA and the MCA based on the annual impact in the case of the ACA and the remainder of the Initial Term in the case of the MCA of the Services which Nielsen would have been expected to purchase from TCS had the event not happened. 

C-3

 

[**]

 

(d)If the Review Committee cannot resolve the dispute within [**] , the dispute will be jointly escalated to a direct discussion between senior executives of the Parties; and

(e)If such senior executives of the Parties are unable to resolve the dispute to the mutual satisfaction of such senior executives, then the ultimate decision as to whether the MCA and/or the ACA shall be reduced and, if so, the amount by which the MCA and/or the ACA shall be reduced, shall be made in good faith by the Nielsen Global CTO or Global Head of Operations or their respective nominees. Such determination by Nielsen shall be final and binding upon the Parties and shall not be subject to further dispute resolution; except that if (and only if) the reduction was due to Section 1.4(a) or (b) TCS may challenge such determination in accordance with the dispute resolution process provided in Section 27.3 of the Agreement, provided that it does so withinof notice of such decision. If either of the Nielsen Global CTO or Global Head of Operations positions ceases to exist, then the CEO of Nielsen shall designate a successor for such role.

 

	
(f)
	
 
	
[**]

 

1.6Normalization of MCA and ACA Reductions.

 

(a)If the MCA and/or the ACA has been reduced as a result of a circumstance described in Section 1.4(h) or 1.4(i), [**]

 

(b)If  prior to the [**] the ACA has been reduced as a result of a circumstance described in Section 1.4(g), (h), or (i), then [**] the Part II ACA shall not be reduced as a result thereof unless, and then only to the extent, the aggregate amount of such reductions is [**]

 

(c)If the ACA has been reduced as a result of a circumstance described in Section 1.4(g), (h), or (i), thenthe Part III ACA shall not be reduced as a result thereof unless, and then only to the extent, the aggregate amount of such reductions is in excess of [**]

 

(d)[**]

1.7Payment of Shortfalls of the MCA and ACA.

(a)If at the end of any year of the Initial Term [**] (other than a year in which this Agreement has terminated, which is covered by Section 1.7(b)) there is an ACA Shortfall, then Nielsen shall pay to TCS [**] Such payment shall be due [**] not earlier than [**] following receipt of TCS’ invoice therefore, but The amount paid toward the ACA Shortfall shall be credited against the MCA.

 

(b)If at the end of [**] there is an MCA [**]

Shortfall or an ACA Shortfall (or there is a termination of the Agreement pursuant to Sections 28.1 or 28.5(b)) TCS shall invoice Nielsen in one consolidated invoice for:

 

(i)the Unpaid Invoices Balance;

(ii)the Unbilled Services Balance; and

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(iii)[**], (the sum of such amounts, the “End of Term Close Out Amount”).

 

Such consolidated invoice shall replace and supersede all other outstanding invoices. Payment of the End of Term Close Out Amount shall be due [**] following receipt of TCS’ invoice therefore; which shall constitute full and complete satisfaction of all Nielsen payment obligations to TCS with respect to Charges for Services, ACA and MCA. Nielsen may reduce the amount paid toward the End of Term Close Out Amount for any payments for invoices included in the Unpaid Invoice Balance (x) which were paid after calculation of the Unpaid Invoices Balance or (y) which were paid prior to calculation of the Unpaid Invoices Balance and were not properly credited to Nielsen’s account by TCS in such calculation.

 

(c)For the purposes of this Section, the following definitions apply:

(i)“ACA Shortfall” for any year means the ACA less the aggregate amount counted toward fulfillment of the ACA for such year (including any Unpaid Invoices Balance for Services performed in such year and any Unbilled Services Balance for services performed in such year) (but in no event less than zero);

 

(ii)“MCA Shortfall” means the MCA less the aggregate amount counted toward fulfillment of the MCA (including any Unpaid Invoices Balance, any Unbilled Services Balance) (but in no event less than zero);

 

(iii)“Unpaid Invoices Balance” is equal to the sum of all invoices issued by TCS to Nielsen under this Agreement (including Pass-Through Expenses) and outstanding as of the effective date of termination of this Agreement; and

 

(iv)“Unbilled Services Balance” is equal to the charges for Services delivered by TCS to Nielsen under this Agreement on or before the effective date of termination of this Agreement but not invoiced as of such date.

 

1.8MCA and ACA Reports. In accordance with Section 5.7 of the Agreement, within [**] of the end of [**] until the MCA has been fully satisfied TCS shall provide Nielsen with a detailed reconciliation of the amount remaining in the MCA and the ACA, showing the amount remaining from the prior calculation and all events occurring during the quarter reported upon (or which should have been reflected in prior statements), which have reduced the MCA and the ACA and the amount of each such reduction, including all adjustments pursuant to Section 1 of Schedule C.

 

1.9Treatment of MCA and ACA In Case of Certain Terminations of the Agreement Pursuant to Section 28.

 

If Nielsen terminates the Agreement pursuant to Sections 28.2 or 28.3 of the Agreement, then Nielsen shall be relieved of any obligation with respect to any remaining portion of the MCA and the ACA.

2.CHARGES FOR SERVICES

	
 
	
2.1
	
Rates

C-5

 

The rates (the “Rates”) provided in Table C-2A apply for all Services performed by TCS under this Agreement, except for Fixed Fee SOWs, Managed Services, and Projects (i.e., all Services will be billed at the applicable Rates) and are firm and fixed during the Term and Extension Period. There will be no charge for overtime. Section 6 provides the basis for determining and converting currency.

 

	
 
	
2.2
	
Delivery Model Pricing

Schedule C-2B describes the pricing by Engagement Model.

 

	
 
	
2.3
	
Transition Charges

 

There will be a mutually agreed upon Transition/Transformation plan. See Schedule C Exhibit C-2C. TCS has shared a list of associates with Nielsen and will execute the plan based on this list. [**] TCS may not reduce or reallocate the resources applicable to any portion of the Services until the Nielsen business unit owner (a direct report to Global CTO or the Global Head of Operations) has agreed that Transition/Transformation for that aspect of the Services is satisfactory, not to be unreasonably withheld.

 

3.CHARGES GENERALLY

	
 
	
3.1
	
COLA [**]

	
 
	
3.2
	
Managed Services

An SOW may provide that all or a portion of the Services under such SOW is to be performed on a Managed Services basis using Billing Units, where the Charges are based on inputs (such as the number of servers) or outputs (such as the number of pages printed) rather than the amount of Resources used. In such case the Managed Services Charges provided therein shall apply and not the Rates herein.

	
 
	
3.3
	
Billing Units Subsume All of TCS’ Expenses

If a portion of the Service (other than a portion provided on a T&M basis) is not measured by a specific Billing Unit, the cost to TCS of providing that portion of the Service is subsumed in the charging methodology hereunder and there shall be no separate charge for variations in volumes of portions of the Services not measured by a Billing Unit.

	
 
	
3.4
	
New Services

(a)A “New Service” is work which is in addition to and materially different from the then existing in-scope Services (including Services that are optional, but for which a price is provided in this Agreement). A New Service may require a new Engagement Model. In determining whether particular work is a New Service, the following work is included within the definition of in-scope Services (and therefore are not New Services):

 

(i)Evolution, supplements, modifications, enhancements, and replacements of the Services to improve the quality, efficiency and effectiveness of the Services to keep pace with technological advancements.

 

C-6

 

(ii)If the performance of the additional work requested by Nielsen would be reflected in a change in the volume of chargeable resource usage, and the net change in the resources and expenses required to perform the additional work would not be disproportionately different from the corresponding change in the volume or composition of such chargeable resource usage from performing such additional functions, then such additional work shall be considered in-scope Services and the charge, if any, for such additional work shall be determined pursuant to the Rates.

 

(b)Charges for New Services

If Nielsen requests TCS to perform work that is not then in-scope Services and TCS has notified Nielsen that TCS considers such work to be a New Service (which notice may be given by email in accordance with the Governance Process) (provided that if TCS has failed to notify Nielsen that TCS considers a particular work to be a New Service and begins providing such work as a Service, if Nielsen’s demand for the work later increases TCS may at any time notify Nielsen that TCS considers the work to be a New Service and the foregoing shall apply prospectively from the date of TCS’ notice), the following shall apply:

 

(i)Promptly after receiving Nielsen’s request for New Services, TCS will provide Nielsen a written proposal and price quote for such New Services containing at least the following information (unless TCS determines (and notifies Nielsen) that the New Services are wholly unrelated to the scope of this Agreement and that TCS is incapable of delivering the New Services):

 

(1)A brief description of the services to be provided;

(2)If relevant, a projection of the net increases and decreases in Nielsen’s Billing Unit utilization, if any, that will be attributable to such New Services;

(3)A description of the new or modified resources and expenses not reflected in clause (2) above that would be required for TCS to provide the New Services;

 

(4)A description of the resources, if any, that would no longer be required to be provided by TCS if it provided the New Services;

 

(5)A brief description of the ramifications and impacts of such New Services on the existing Services (including the Service Levels); and

 

(6)Where the nature of the proposed Services are such that TCS, as the incumbent for the other Services has a competitive advantage over other potential suppliers, the charges proposed by TCS shall be no greater than TCS’ charges to any other similar TCS customer for similar services.

 

(ii)TCS’ price quote for the New Services

(1)Charges for New Services shall be determined pursuant to this Section 3.4 and shall be provided on a most favored customer basis.

 

(2)At Nielsen’s request, TCS’ price quote shall be at a reasonable level of detail such that Nielsen can properly evaluate and understand the components of TCS’ offer. For example, if the New Services involves the provision of Equipment, Software, and personnel resources, and the 

C-7

 

charges for each category can be reasonably identified and separated (for analysis purposes), TCS will provide a proposed line item charge for each category. In addition, TCS will break out its proposed charges for any Third Party Equipment, Software or services, if applicable to the New Service.

 

(3)TCS’ price quote shall be based upon the required proportional increase in personnel, systems and other resources applicable to the New Services relative to the then-existing TCS Charges and shall take into account any resources and expenses of TCS for then-existing Services that would no longer be required once TCS begins performing the New Services.

 

(a)Nielsen may elect to have TCS perform the work as a New Service in accordance with the proposal by TCS described in Section 3.4(b)(i). If Nielsen so elects, the parties shall execute an SOW documenting the New Services and the Charges for them.

 

(b)Subject to Section 3.4(c), TCS shall not begin performing any New Services until Nielsen has accepted TCS’ proposed SOW.

 

(c)If the parties cannot agree upon whether work requested by Nielsen is a part of the then-existing Services or would be a New Service or what the appropriate charge for the New Service should be, TCS shall nevertheless begin to perform the disputed work if Nielsen so requests.  In this event, Nielsen shall pay TCS [**] percent ([**]%) of the Charges proposed by TCS until the matter is resolved in accordance with the dispute resolution procedures provided in Section 27.3 of the Agreement; provided that TCS shall not be required to perform pursuant to this provision for more than [**]

3.5TCS Software for any particular New Service.

 

(a)If TCS (or its Affiliate acting in conjunction with TCS) desires to license to Nielsen computer software that (i) is part of TCS’ (or such Affiliate’s) commercial offerings, (ii) has not previously been used by TCS to provide the Services to Nielsen, and (iii) is not then licensed to Nielsen (e.g., a renewal or expansion is being considered, licenses that have lapsed for more than an insubstantial period of time shall not qualify) (or at the time it was first licensed to Nielsen it was deemed TCS Commercially Available Software), TCS (or such Affiliate) may suggest to Nielsen that such computer software be licensed to Nielsen provided that (x) TCS assist Nielsen in completing a formal software selection process to identify and evaluate competitive offerings provided by unaffiliated third parties, (y) Nielsen concludes that such software selection process establishes that there is at least one bona fide competitive alternatives available to meet Nielsen’s requirements, and (z) if Nielsen selects the TCS software and executes a license agreement therefor before TCS has introduced such software into Nielsen’s environment, then such TCS software shall be deemed “TCS Commercially Available Software”.

 

(b)All software of TCS and its Affiliates that is not TCS Commercially Available Software shall be deemed “TCS Non-Commercially Available Software”.

 

4.NIELSEN OBLIGATION TO PROVIDE REPLACEMENT SERVICES WHERE TCS HAS MADE AGREED UPON INVESTMENTS; GAIN SHARE

 

4.1Nielsen Obligation To Provide Replacement Services Where TCS Has Made Agreed Upon Investments

C-8

 

 

(a)The Parties shall collaboratively establish a list of areas (“Investment Areas”) where TCS will make investments that will improve the efficiency of the methods of delivery of the Services to Nielsen’s Operations group in order to support the charges that will apply hereunder from those previously provided between the Parties, other than those where Nielsen desires to make the investment directly. Where Nielsen makes the investment directly, as between Nielsen and TCS, Nielsen shall be the sole beneficiary of such investment. The first such list was agreed upon and the second list shall be agreed upon by

 

. As part of such process Nielsen may inform TCS of areas where it recommends that TCS not make investments due to anticipated changes in Nielsen’s priorities.

 

(b)With regard to each Investment Area, provided that TCS actually makes the investment described in the list, forafter the date of each Investment Areas list (but not beyond  [**]  )  Nielsen  may  not  reduce  demand  (measured  by  inputs)  for  the associated Services below [**] without providing substitute demand for similar Services.

(c)As of the Amendment Number One Effective Date the Parties agree that the provisions in this Section 4.1 are obsolete and not in effect.

 

4.2Gain Share 

[**]

 

5.PASS-THROUGH EXPENSES

(a)Nielsen will reimburse TCS for all Pass-Through Expenses mutually agreed by the Parties, as provided in the Agreement. Pass-Through Expenses must be reasonable, warranted and cost effective, and have been approved in advance by Nielsen’s Project Manager. Pass-Through Expenses are to be billed to Nielsen at TCS’ cost (without mark up of any kind, including administrative fees, and net of all rebates and credits).

 

(b)TCS shall use Commercially Reasonable Efforts to minimize the amount of Pass-Through Expenses. With respect to services or materials paid for on a Pass-Through Expense basis, Nielsen may:

parties;

	
(i)
	
obtain such services or materials directly from one or more third

 

(ii)designate the third party source for such services or materials;

(iii)designate the particular services or materials (e.g., equipment make and model) TCS shall obtain (although if TCS demonstrates to Nielsen that such designation will have an adverse impact on TCS’ ability to meet the Service Levels, such designation shall be subject to TCS’ approval);

 

(iv)designate the terms for obtaining such services or materials (e.g., purchase or lease and lump sum payment or payment over time);

 

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(v)require TCS to identify and consider multiple sources for such services or materials or to conduct a competitive procurement; and

 

(vi)review and approve the applicable Pass-Through Expenses before entering into a contract for particular services or materials.

 

(c)The Parties may agree in an SOW that Nielsen’s payment to TCS of certain Pass-Through Expense associated with such SOW shall be subject to different payment terms than otherwise provided herein.

 

6.LOCAL COUNTRY BILLING; EXCHANGE RATES

(a)Except as provided herein, the Charges shall be denominated and paid in the currencies specified in Schedule C-2A, and if no currency is specified therein then in United States Dollars. If requested by Nielsen, TCS shall invoice Nielsen Affiliates outside of the United States for charges in the currency specified for local billing in the applicable SOW. The exchange rates to be used to convert from the U.S. Dollar based charges in this Agreement to the relevant local currency shall be based on the average of the exchange rates shown in the Wall Street Journal for each Business Day in the December prior to the year in which the Services are to be provided (e.g., January’s bill for December’s services will use the prior year’s exchange rate but February’s bill for January’s services will use the new rates. If the actual exchange rate of any applicable local currency varies more than twenty percent (20%) against the U.S. Dollar in the course of any Calendar Year, upon the request of either Party, the Parties shall reset the exchange rates for the remainder of such Calendar Year based on the average exchange rates for the calendar month prior to such readjustment date. Such readjustment may occur only once per year. An SOW may provide for different terms but in order for such SOW to be effective it must be approved by the Nielsen Global Relationship Manager and the TCS’ Global Relationship Manager, with such approval indicated on the SOW.

 

(b)For purposes of calculating credits against the MCA and the ACA for Charges that are billed in currencies other than United States Dollars, the parties shall use the same exchange rates as provided in Section 6(a) of this Schedule C.

 

7.CHARGES FOR TERMINATION-EXPIRATION SERVICES

Termination-Expiration Services provided during the Term (including the Extension Period) shall be invoiced at the Rates provided in Table C-2A. If any such Services extend beyond the Term (including the Extension Period), the Charges shall be as mutually agreed, but shall not be increased beyond the Extension Period Rates by more than 10% per Calendar Year after the Extension Period.

 

8.TRUE UP OF CHARGES FOR 2017

This Schedule C confirms, replaces and supersedes the letter agreements between the Parties dated as of March 17, 2017 and as of June 29, 2017.

 

9.CLIENT SERVICE KPO ROTATIONAL ASSIGNMENTS

[**]

C-10

 

[**]

C-11

 

Exhibit C-1

Offshore Leverage Commitments

C-12

 

Exhibit C-2A

All amounts are in US Dollars unless otherwise noted.

 

Rate Card

 

[**]

C-13

 

[**]

C-14

 

Exhibit C-2B

Engagement Models

[**]

C-15

 

[**]

C-16

 

[**]

C-17

 

[**]

C-18

 

[**]

C-19

 

[**]

C-20

 

Exhibit C-2C

Transition Areas & Resource Movement

 

TCS proposes to have the following projects be transitioned immediately to Managed Services Model.

[**]

C-21

 

[**]

C-22Exhibit

DIVISION PRESIDENT SEVERANCE AGREEMENT

THIS AGREEMENT made as of the _20th__ day of July, 2017, by and between Hologic, Inc., a Delaware corporation, and Kevin Thornal (the "Executive").

WHEREAS, the Board of Directors (the "Board") of the Company (as hereinafter defined) recognizes that the possibility of a termination without Cause (as hereinafter defined), can create significant distractions for its key management personnel because of the uncertainties inherent in such situations;

WHEREAS, the Board has determined that it is essential and in the best interest of the Company and its stockholders to retain the services of the Executive, in general, and particularly in the event of a threat or the occurrence of a change in control and to ensure his or her continued and full attention, dedication and efforts in such event without undue concern for his or her personal financial and employment security; and

WHEREAS, in order to induce the Executive to remain in the employ of the Company, in general, and particularly in the event of a threat or the occurrence of a change in control, the Company desires to enter into this Agreement with the Executive to provide the Executive with severance benefits in the event his or her employment is terminated in certain circumstances in accordance with the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the respective agreements of the parties contained herein, it is agreed as follows:

l.     TERM OF AGREEMENT. This Agreement shall commence as of the date hereof, and shall continue in effect until Executive's employment with Company terminates.

2. DEFINITIONS.

2.1     ACCRUED COMPENSATION. For purposes of this Agreement, "Accrued
Compensation" shall mean an amount which shall include all amounts earned or accrued
through the "Termination Date" (as hereinafter defined) but not paid as of the Termination Date, including (i) base salary, (ii) reimbursement for reasonable and necessary business expenses incurred by the Executive on behalf of the Company, pursuant to the Company's expense reimbursement policy in effect at such time, during the period ending on the Termination Date, and (iii) vacation pay.

2.2     BASE SALARY. For purposes of this Agreement, "Base Salary" shall mean the greater of the Executive's annual base salary (a) at the rate in effect on the Termination Date or (b) at the highest rate in effect at any time during the ninety (90) day period prior to the Termination Date, and shall include all amounts of his or her Base Salary that are deferred at the election of the Executive under the qualified and non-qualified employee benefit plans of the Company or any other agreement or arrangement. For avoidance of doubt, Base Salary shall not include any bonus or portion thereof deferred under the Company's Bonus Deferral Program.

2.3     BONUS AMOUNT. For purposes of this Agreement, "Bonus Amount" shall mean the average of the annual bonuses (excluding any bonuses deferred under the Company's Bonus Deferral Program or under any special bonus program) paid or that has been earned and accrued but unpaid, in each case under the Company’s Short Term Incentive Plan, during the three full fiscal years ended prior to the Date of Termination.  Notwithstanding the foregoing sentence, any bonus electively deferred by the Executive pursuant to a qualified or non-qualified plan shall be included in the Bonus Amount. For purposes of this Agreement, Bonus Deferral Program shall be any deferral Plan or Program adopted by the Company's Board of Directors that provides for a non-elective deferral of the Executive's Annual Bonus.

2.4     CAUSE. The Company may terminate the Executive's employment during the Term of this Agreement for "Cause". For purposes of this Agreement, "Cause" means (i) an act or acts of personal dishonesty taken by the Executive and intended to result in substantial personal enrichment of the Executive at the expense of the Company; (ii) material violation of the Company's Code of Conduct, and other Company Codes of Conduct or policies and procedures that are applicable to the Executive; or (iii) the conviction of the Executive of a felony involving moral turpitude. The Company shall provide the Executive with 30 days written notice of any determination of Cause and provide the Executive, for a period of 30 days following such notice, with the opportunity to appear before the Board, with or without legal representation, to present arguments and evidence on his or her behalf and following such presentation to the Board, the Executive may only be terminated for Cause if the Board (excluding the Executive if he is a member of the Board), by a vote of not less than 75% of the independent directors (determined in accordance with the corporate li sting standards of the Nasdaq National Market and the applicable rules and regulations of the Commission) determining that his or her actions did, in fact, constitute for Cause.

2.5     COMPANY. For purposes of this Agreement, "Company" shall mean Hologic, Inc. and shall include its "Successors and Assigns" (as hereinafter defined). 

2.6     DISABILITY. For purposes of this Agreement, "Disability" shall mean a physical or mental infirmity which impairs the Executive's ability to substantially perform his or her duties with the Company for a period of ninety (90) consecutive days, and the Executive has not returned to his or her full time employment prior to the Termination Date as stated in the "Notice of Termination" (as hereinafter defined).

2.7     GOOD REASON. For purposes of this Agreement, "Good Reason" shall mean: 

a.     Material diminution in the Executive's offices, titles and reporting requirements, authority, duties or responsibilities as in effect at any time in the ninety (90) days prior to Notice of Termination;

b.     Reduction in the Executive's Base Salary or bonus opportunity, unless such reduction is part of a company-wide reduction in salary and bonus opportunities for all similarly situated executives;

 c.     The Company requiring the Executive to be based at any office or location more than fifty (50) miles from the Company's headquarters as of the date hereof;

d.     Any purported termination by the Company of the Executive's employment otherwise than for Cause; or

e.     Any failure by the Company to comply with and satisfy Section 6 hereof.

2.8     NOTICE OF TERMINATION. For purposes of this Agreement, "Notice of Termination" shall mean (i) a written notice from the Company of termination of the Executive's employment which indicates the specific termination provision in this Agreement relied upon, if any, and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated; or (ii) a written notice from the Executive of his or her resignation for Good Reason, which indicates the specific provision in Section 2.7 herein.

2.9     PRO RATA BONUS. For purposes of this Agreement, "Pro Rata Bonus" shall mean an amount equal to the Bonus Amount multiplied by a fraction the numerator of which is the number of months worked in the fiscal year through the Termination Date and the denominator of which is 12. Any partial months shall be rounded to the nearest whole number using normal mathematical convention.

2.l0     SUCCESSORS AND ASSIGNS. For purposes of this Agreement, "Successors and Assigns" shall mean a corporation or other entity acquiring all or substantially all the assets and business of the Company (including this Agreement) whether by operation of law or otherwise.

2.11     TERMINATION DATE. For purposes of this Agreement, "Termination Date" shall mean in the case of the Executive's death, his or her date of death, in the case of Good Reason, the last day of his or her employment, and in all other cases, the date specified in the Notice of Termination; provided, however, that if the Executive's employment is terminated by the Company for Cause or due to Disability or by the Executive for Good Reason, the date specified in the Notice of Termination shall be at least 30 days from the date the Notice of Termination is given to the Executive, provided that in the case of Disability the Executive shall not have returned to the full-time performance of his or her duties during such period of at least 30 days.

3.     TERMINATION OF EMPLOYMENT. If, during the term of this Agreement, the Executive's employment with the Company is terminated, then the Executive shall be entitled to the following compensation and benefits:

a.     If the Executive's employment with the Company shall be terminated (1) by the Company for Cause or Disability, (2) by reason of the Executive's death, or (3) by the Executive other than for Good Reason, the Company shall pay to the Executive the Accrued Compensation only.

b.     If the Executive's employment with the Company shall be terminated by Company without Cause or by the Executive for Good Reason (as defined in Section 2.7. then the Executive shall be entitled to each and all of the following:

		
	i.
	The Company shall pay the Executive all Accrued Compensation;

		
	ii.
	The Company shall pay the Executive a Pro Rata Bonus;

		
	iii.
	The Company shall continue to pay the Executive his or her Base Salary for the period of fifteen (15) months  from the Termination Date in  accordance with its normal payroll practices and subject to applicable tax withholding; provided, however, that if the Company determines that such payments would constitute deferred compensation within the meaning of Section 409A of the Code, then the Executive agrees to the modifications with respect to timing of such payments in accordance with Section 10 hereof; and

c.     The Amounts provided for in Sections 3(a) and 3(b)(i) (shall be paid in a single lump sum cash payment within five (5) business days after the Executive's Termination Date (or earlier, if required by applicable law). 

3.2     MITIGATION. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment.

3.3     OTHER SEVERANCE BENEFITS. The severance pay and benefits provided for in this Section 3 shall be in lieu of any other severance or termination pay to which the Executive may be entitled under any Company severance or termination plan, program, practice or arrangement. The Executive's entitlement to any other compensation or benefits shall be determined in accordance with the Company's employee benefit plans and other applicable programs, policies and practices then in effect.

3.4     DIVESTITURE OR SALE OF DIVISION. Notwithstanding any other provision of this Agreement to the contrary, the termination of the Executive's employment with the Company in connection with the sale, divestiture or other disposition of a Subsidiary or "Division" (as hereinafter defined) (or part thereof) shall not be deemed to be a termination of employment of the Executive for purposes of this Agreement provided, in the event such sale, divestiture or other disposition of a Subsidiary or Division, the Company obtains an agreement from such purchaser or acquiror as contemplated in Section 6(c). The Executive shall not be entitled to benefits from the Company under this Agreement as a result of such sale, divestiture, or other disposition, except in the event of a subsequent termination of employment entitling Executive to a payment hereunder. "Division” shall mean a business unit or other substantial business operation within the Company that is operated as a separate profit center.

4.     NOTICE OF TERMINATION. Any purported termination of the Executive's employment by the Company and/or the Employer shall be communicated by Notice of Termination to the Executive.  For purposes of this Agreement, no-such purported termination shall be effective without such Notice of Termination.

5.     EXCISE TAX PAYMENTS

a.     Notwithstanding anything contained in this Agreement to the contrary, to the extent that the payments and benefits provided under this Agreement and benefits provided to, or for the benefit of, the Executive under any other Company plan or agreement (such payments or benefits are collectively referred to as the "Payments") would be subject to the excise tax (the "Excise Tax") imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"), the Payments shall be reduced (but not below zero) if and to the extent necessary so that no Payment to be made or benefit to be provided to the Executive shall be subject to the Excise Tax (such reduced amount is hereinafter referred to as the "Limited Payment Amount"). Unless the Executive shall have given prior written notice specifying a different order to the
Company to effectuate the Limited Payment Amount, the Company shall reduce or eliminate the Payments, by first reducing or eliminating those payments or benefits which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the "Determination" (as hereinafter defined). Any notice given by the Executive pursuant to the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive's rights and entitlements to any benefits or compensation.

b.     An initial determination as to whether the Payments shall be reduced to the Limited Payment Amount pursuant to the Plan and the amount of such Limited Payment Amount shall be made by an accounting firm at the Company's expense selected by the Company which is designated as one of the six largest accounting firms in the United States (the "Accounting Firm").  The Accounting Firm shall provide its determination (the "Determination"), together with detailed supporting calculations and documentation, to the Company and the Executive within five (5) days of the Termination Date, if applicable, or such other time as requested by the Company or by the Executive (provided the Executive reasonably believes that any of the Payments may be subject to the Excise Tax), and if the Accounting Firm determines that no Excise Tax is payable by the Executive with respect to a Payment or Payments, it shall furnish the Executive with an opinion, at the Company's expense, reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to any such Payment or Payments. Within ten (10) days of the delivery of the Determination to the Executive, the Executive shall have the right to dispute the Determination (the "Dispute"). If there is no Dispute, the Determination shall be binding, final and conclusive upon the Company and the Executive subject to the application of Section 5(c) below.

c.     As a result of the uncertainty in the application of Sections 4999 and 2800 of the Code, it is possible that the Payments to be made to, or provided for the benefit of, the Executive either have been made or will not be made by the Company which, in either case, will be inconsistent with the limitations provided in Section 5(a) (hereinafter referred to as an "Excess Payment" or "Underpayment", respectively). If it is established pursuant to a final determination of a court, or an Internal Revenue Service (the "IRS") proceeding which has been finally and conclusively resolved, that an Excess Payment has been made, such Excess Payment shall be deemed for all purposes to be a loan to the Executive made on the date the Executive received the Excess Payment and the Executive shall repay the Excess Payment to the Company, on demand (but not less than thirty (30) days after written notice is received by the Executive), together with interest on the Excess Payment at the "Applicable Federal Rate" (as defined in Section 1274(d) of the Code) from the date of the Executive's receipt of such Excess Payment until the date of such repayment. In the event that it is determined by (i) the Accounting Firm, the Company (which shall include the position taken by the Company, or together with its consolidated group, on its federal income tax return) or the IRS, (ii) pursuant to a determination by a court, or (iii) upon the resolution to the Executive's satisfaction of the Dispute, that an underpayment has occurred, the Company shall pay an amount equal to the Underpayment to the Executive within thirty (30) days of such determination or resolution, together with interest on such amount at the Applicable Federal Rate from the date such amount would have been paid to the Executive until the date of payment.

d.     Notwithstanding anything contained in this Agreement to the contrary, in the event that, according to the Determination, an Excise Tax will be imposed on any Payment or Payments, the Company shall pay to the applicable government taxing authorities, as Excise Tax withholding, the amount of the Excise Tax that the Company has actually withheld from the Payment or Payments.

6.     SUCCESSORS: BINDING AGREEMENT.

a.     This Agreement shall be binding upon and shall inure to the benefit of the Company, and its Successors and Assigns, and the Company shall require any Successors and Assigns to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place.

b.     Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive, his or her beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's personal representative. 

c.     In the event that a Subsidiary or Division (or part thereof) is sold, divested, or otherwise disposed of by the Company subsequent to or in connection with a Change in Control and the Executive is offered employment by the purchaser or acquirer thereof, the Company shall require such purchaser or acquiror to assume, and agree to perform, the Company's obligations under this Agreement, in the same manner, and to the same extent, that the Company would be required to perform if no such acquisition or purchase had taken place.

7.     ARBITRATION. Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity hereof, (collectively, a "Claim") shall be settled by arbitration pursuant to the rules of the American Arbitration Association. Any such arbitration shall be conducted by one arbitrator, with experience in the matters covered by this Agreement, mutually acceptable to the parties. If the parties are unable to agree on the arbitrator within thirty (30) days of one party giving the other party written notice of intent to arbitrate a Claim, the American Arbitration Association shall appoint an arbitrator with such qualifications to conduct such arbitration. The decision of the arbitrator in any such arbitration shall be conclusive and binding on the parties. Any such arbitration shall be conducted in Boston, Massachusetts, unless the Executive consents to a different location.

8.     NOTICE. For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of Termination) shall be in writing and shall be (i) delivered by hand, ii) transmitted by facsimile or electronic mail with receipt confirmed, (iii) delivered by overnight courier service with confirmed receipt or (iv) mailed by first class U.S. mail postage pre-paid and registered or certified, return receipt requested and addressed to the respective addresses last given by each party to the other, provided that all notices to the Company shall be directed to the attention of the Board with a copy to the General Counsel of the Company.  All notices and communications shall be deemed to have been received on the date of delivery thereof or on the third business day after the mailing thereof, except that notice of change of address shall be effective only upon receipt.

9.     NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent or limit the Executive's continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company (except for any severance or termination policies, plans, programs or practices) and for which the Executive may qualify, nor shall anything herein limit or reduce such rights as the Executive may have under any other agreements with the Company (except for any severance or termination agreement). Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan or program of the Company shall be payable in accordance with such plan or program, except as explicitly modified by this Agreement.

10.     409A COMPLIANCE. Notwithstanding any other provision herein to the contrary, the Company shall make the payments required hereunder in compliance with the requirements of Section 409A of the Code and any interpretative guidance issued thereunder. The Company may, in its sole and absolute discretion, delay payments hereunder or make such other modifications with respect to the timing of payments as it deems necessary to comply with Section 409A of the Code.

11.     RELEASE. The Executive agrees that, with the exception of the Accrued
Compensation due to him in accordance with the terms hereunder, that the payment of any severance under Sections 3(b)(ii) and (iii) is subject to and conditioned upon the execution and delivery by the Executive to the Company of a Settlement and Release Agreement (the "Release Agreement") in favor of the Company, its affiliates and their respective officers, directors, employees and agents in respect to the Executive's employment with the Company and the termination thereof in a form suitable to the Company and the expiration of any revocation period provided for under the Release Agreement.

12.     NO EMPLOYMENT RIGHT. This Agreement does not constitute, and shall not be construed to provide, any assurance of continuing employment. Executive's employment with the Company and of its Successors or Assigns is "at will" and, subject to the terms and conditions of this Agreement, may be terminated by Executive or the Company at any time.

13.     OTHER CHANGE IN CONTROL AGREEMENT. Notwithstanding anything herein to the contrary, if the Executive is a party to a Change of Control Agreement with the Company and such Agreement results in the payment of benefits to the Executive as the result of a change in control then the Executive shall receive no compensation hereunder. 

14.     MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing, specifying such modification, waiver or discharge, and signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

15.     GOVERNING LAW. This Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts without giving effect to the conflict of laws principles thereof. Any action brought by any party to this Agreement to enforce any decision of an arbitrator made as contemplated in Section 8 above shall be brought and maintained in a court of competent jurisdiction in the Commonwealth of Massachusetts.

16.     SEVERABILITY. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 

17.     ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior severance agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof, provided, however, that any Change of Control Agreement, option agreement, Assignment of Intellectual Property and Non-Competition Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized executive and the Executive has executed this Agreement as of the day and year first above written.

Hologic, Inc.

By: ___/s/ Allison Bebo__________________
Date:__ July 20, 2017____________________

Executive
/s/ Kevin R. Thornal
____________________________________

Date:__July 20, 2017___________________

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