Document:

Section 1

April 30, 2001

 

Reba W. Williams

Alliance Capital

Management Corporation

1345 Avenue of the Americas

New York, NY 10105

 

Dear Reba,

 

This letter sets forth the

terms of your agreement with Alliance Capital Management Corporation (the

“Company”) and Alliance Capital Management L.P. (the “Partnership”) relating to

your future role and responsibilities.

 

1.  Resignation. 

Effective as of May 1, 2001 (“Effective Date”), you shall resign as a

member of the Board of Directors (the “Board”) of the Company and as an

employee of the Partnership.

 

2.  Position/Duties.  For

the period commencing on the Effective Date through December 31, 2003 (the

“Term”), you agree to serve as a consultant to the Partnership to advise on the

phasing-in of a photo and art collection, which shall gradually replace the

prints from your collection that are currently hanging in the offices of the

Partnership and its subsidiaries. 

During the Term, you shall also continue to serve on the boards of directors

of The India Liberalisation Fund, The Spain Fund, The Austria Fund and The

Southern Africa Fund (collectively, the “Funds”), subject in all cases to the

election by the boards of directors and shareholders of the Funds as necessary.

 

3.  Compensation/Benefits/Expenses. Commencing on the Effective

Date, the Partnership shall pay to you a guaranteed supplemental retirement

benefit in the amount of $180,000 per year for your life.  For your services to the Funds, you shall be

compensated at one-half the director’s fee payable to non-affiliated directors

of the Funds.  In addition, during the

Term, to the extent that you are requested by the Partnership to meet with

clients and you agree to do so, then the Partnership shall compensate you at a

rate of $100 per hour and reimburse you for your reasonable expenses in

accordance with the Partnership’s policies and procedures.

 

During the Term, any travel

by you in connection with the performance of your duties hereunder or the

business of the Partnership or the Funds shall be on the same basis and manner

as travel by current members of the Executive Committee.  In addition, during the Term, the

Partnership or the Funds, as the case may be, shall reimburse you for all

reasonable business–related expenses that you incur in attending board

meetings in accordance with the Partnership’s or the Fund’s policies and

procedures.

 

1

As of the Effective Date,

your participation in and contributions to all welfare, non-qualified and

qualified plans of the Partnership and its affiliates shall cease.  Your rights to a distribution, rollover,

form of payment or deferral regarding your account balances shall be determined

in accordance with terms and conditions of the respective plans.  Notwithstanding the foregoing, if for any

reason you cease to receive spousal dental and medical coverage under benefits

provided to your husband by the Partnership, the Partnership shall provide you

with comparable dental and medical benefits for life.

 

4.  Office and Support Staff. 

During the Term, at the Partnership’s expense, you shall be entitled to

use your current office, conference room and print storage area.  During the Term, your current support staff

(which in your case includes Ms. Julie A. Perez, Executive Secretary, Mr. Robert

Siciliano, Executive Secretary and Art Registrar and Mr. Steve Diehl, art

installer (part-time employee)) (collectively, “Administrative Staff”) and such

additional part-time or temporary secretarial services as required in your

reasonable judgment and as approved by the Executive Committee, shall assist

you in the performance of your duties; provided, however, Mr. Siciliano and Mr.

Diehl’s employment may be terminated by the Partnership upon the Partnership’s

complete return to you at a location in New York City of your print collection

currently housed at the Partnership’s New York City offices.

 

During the Term, should any

one of the Administrative Staff resign or should their employment otherwise be

terminated (and in the case of Mr. Siciliano or Mr. Diehl, prior to the

Partnership’s complete return to you of your print collection), you shall be

entitled to hire a suitable replacement or replacements at comparable levels of

compensation and benefits in accordance with the Partnership’s compensation and

benefits policies for Senior Executive Secretaries and Administrative

Assistants in effect at such time.

 

5.  Use of Facilities. 

During the Term, in addition to hosting events in connection with your

duties hereunder, you and your husband shall be entitled to sponsor events at

the Company’s or the Partnership’s facilities for your non-profit activities to

the extent that such facilities are available and such use does not conflict

with a Company or Partnership event or activity.  The Partnership shall cover the costs, including refreshments and

staffing, of such events that you and your husband sponsor, subject to a

limitation in the aggregate amount of $100,000 per year.

 

2

6.  Nondisparagement. 

From the Effective Date through May 1, 2006, you shall not make any

statement, written or oral, that would disparage the Partnership and its

affiliates or the personal or professional reputation of any of the present or

former directors or senior executive officers of the Partnership and its

affiliates.  From the Effective Date

through May 1, 2006, the Partnership agrees that it shall not make, and it

shall cause each of its senior executive officers and directors and each senior

executive officer and director of its affiliates not to make any communication,

whether written or oral, that would disparage you or your professional or

personal reputation.

 

Notwithstanding the

foregoing, nothing in this Paragraph 8 shall prevent any person from (a)

responding publicly to incorrect, disparaging or derogatory public statements

to the extent reasonably necessary to correct or refute such public statements

or (b) making any truthful statement to the extent (x) necessary to enforce

this agreement or (y) comply with legal process required by applicable law or

by any court, arbitrator or administrative or legislative body (including any

committee thereof) with apparent jurisdiction to order such person to disclose

or make accessible such information.

 

You acknowledge that the

provisions of this Paragraph are reasonable and necessary for the protection of

the Partnership and its affiliates and that the Partnership and its affiliates

will be irrevocably damaged if such provisions are not specifically enforced.  Accordingly, you agree that a breach of any

of the provisions under this Paragraph will be deemed to be a material breach

of this agreement and will entitle the Partnership to terminate this agreement

and all further obligations it may have hereunder.

 

7.  Indemnification.  The

Partnership confirms that as a director of the Company, you are an “Indemnified

Person” until the Effective Date within the meaning of the Agreement of Limited

Partnership of the Partnership.

 

During the Term, the

Partnership agrees to indemnify you and hold you and your respective heirs and

representatives harmless against any and all damages, costs, liabilities,

losses and expenses (including reasonable attorneys’ fees) as a result of any

claim or proceeding, or threatened claim or proceeding, against you that arises

out of the performance of your services hereunder as a consultant to the

Partnership and as a director of the Funds; provided that any such claim or proceeding

is not attributable to any recklessness, deliberate misconduct or gross

negligence on your part.  During the

Term, you shall also be covered by any directors’ and officers’ liability

policy maintained by any of the Funds so long as you continue to be a director

of that Fund.

 

The foregoing indemnity

shall not apply to claims by the Company against you that arise under the terms

of this agreement and nothing herein shall require indemnification for any

conduct occurring after the Term.

 

3

8.  Entire Agreement; Dispute Resolution; Amendments; Governing Law.  Except as otherwise provided in the

agreement with your husband dated the same date as this agreement, this

agreement contains the entire understanding with respect to the subject matter

hereof, including the terms and conditions of your continued service with the

Company and the Partnership, and supersedes any and all prior agreements and

understandings, whether written or oral, between you, the Company, the

Partnership or any affiliate thereof, with respect to the subject matter

hereof.  Any dispute arising out of, or

relating to, this agreement shall be resolved by binding arbitration, to be

held in the Borough of Manhattan in New York City, in accordance with the

Commercial Arbitration Rules of the American Arbitration Association.

 

9.  Status as Independent Contractor; Withholding.  The parties agree that during the Term, you

shall be an independent contractor with respect to the Partnership, and shall

not be an agent or an employee of the Partnership.  The payment of any amount hereunder shall be subject to such

withholding taxes or requirements, if any, as may apply from time to time to

independent contractors.  You shall be

responsible for paying all applicable taxes arising under any payments hereunder.

 

4

This agreement may not be

altered, modified or amended except by written instrument signed by you, the

Company and the Partnership.  This

agreement shall be governed by New York law, without reference to principles of

conflicts of law.

 

Sincerely,

 

ALLIANCE CAPITAL MANAGEMENT L.P.

 

 

 

	

  By:

  	

  ALLIANCE CAPITAL

  MANAGEMENT

  
	

   

  	

  CORPORATION, its General

  Partner

  
	

   

  	

   

  
	

  By:

  	

  /s/ Bruce W. Calvert

  
	

   

  	

  Bruce W. Calvert

  
	

   

  	

  Chief Executive Officer

  

 

 

AGREED TO AND ACCEPTED BY

 

 

	

  /s/ Reba W. Williams

  
	

  Reba W. Williams

  
	

   

  
	

  April 30, 2001

  
	

  Date

  

 

 

5SERVICES AGREEMENT

Exhibit 10.19

 

SERVICES AGREEMENT

 

 

 

THIS AGREEMENT made as of and effective this 22nd day

of April, 2001.

 

B E T W E E N:

 

Alliance Capital Management L.P., a limited partnership with a principal

place of business located at 1345 Avenue of the Americas, New York, New York  (hereinafter

referred to as “Alliance”), and The Equitable Life Assurance Society of the United

States, a corporation with its principal place of business located

at 1290 Avenue of the Americas, New York in the State of New York, 10104,  (hereinafter

referred to as “Equitable”);

 

W  I  T  N  E  S

S  E  T  H

 

                WHEREAS Alliance provides

certain data processing services and functions for itself and certain of its

affiliated companies, (hereinafter, referred to as “Alliance Companies”); and

 

                WHEREAS Alliance desires to

have the data processing services and functions, more particularly described

herein, performed by Equitable from the Equitable Information Processing Center

presently located at 400 Willow Tree Road, Leonia, New Jersey 07605; and

 

                WHEREAS Equitable is willing

to provide Alliance such data processing services and functions, all in

accordance with the terms and conditions of this Agreement;

 

                NOW THEREFORE, in

consideration of the premises and the mutual covenants herein contained and for

other good and valuable consideration, the receipt and sufficiency of which are

hereby expressly acknowledged, the parties hereto agree as follows:

 

 

ARTICLE

1.   BASIC PROVISIONS

 

                1.1          Composition of Agreement. 

This Agreement is comprised of:

 

	

  (i)

  	

   

  	

  the provisions of Articles 1 through 8 herein (the

  “Basic Provisions”); and,

  
	

   

  	

   

  	

   

  
	

  (ii)

  	

   

  	

  schedules and technical exhibits for software

  systems, specifications, time tables, other terms and conditions, fees and

  charges and other schedules agreed upon by Equitable and Alliance or any

  Alliance Companies.

  

 

                1.2          Basic Provisions Controlling. 

In the event of any conflict or inconsistency between any schedule,

exhibit or any other document made part of this Agreement and the Basic

Provisions, the Basic Provisions shall be controlling.

 

 

 

                1.3          Entire Agreement. 

This Agreement sets forth the entire and exclusive understanding and

agreement of Equitable, Alliance and Alliance Companies with respect to its

subject matter hereof and supersedes and merges any prior understandings or

agreements, oral or written.

 

 

ARTICLE

2.   SCOPE OF SERVICES

 

                2.1

         The Services. 

(1)  Upon the terms and

conditions of this Agreement, Equitable shall provide Alliance with the

services set out in Schedule A attached to this Agreement, including without

limitation the service level requirements that are specified therein (the

“Services”).

 

                                (2)           Each

party hereto confirms, acknowledges and agrees that the terms and conditions of

this Agreement are commercially reasonable and generally consistent with

industry practice in the circumstances of the transactions contemplated herein.

 

                2.2          Change Management and Additional

Services.  In the event Alliance wishes Equitable to

provide any services to Alliance that are not included in the Services, Alliance

shall submit a written request for same to Equitable and the parties agree that

they shall use their reasonable efforts to negotiate, in good faith, such

provision of services in accordance with the terms of this Agreement.  Any such additional services shall be

incorporated into the definition of Services, and shall be at fees calculated

on the same basis and in accordance with the principles set forth in Article 5

hereof.

 

 

ARTICLE 3.   ALLIANCE RESPONSIBILITIES

 

                3.1          Alliance Responsibilities.  Alliance shall perform the obligations set out in

Schedule B attached hereto (“Alliance Obligations”).

 

                3.2          Data Delivery. 

Equitable may accept as correct, accurate and reliable, without any

further inquiry, all information, data, documents and other records delivered,

supplied or made available to Equitable hereunder, and may assume full

disclosure to Equitable hereunder in the performance of the Services. Equitable

shall have no responsibility or liability for any error, inadequacy or omission

to the extent that it results from inaccurate or incomplete information, data,

documents or other records provided to Equitable in connection with this

Agreement.

 

 

2

 

ARTICLE

4.   LEGAL COMPLIANCE

 

                4.1          Compliance with Local Laws and

Policies.  Each party hereto agrees that it shall, at

its own cost and expense: (i) comply with all laws, rules, regulations,

procedures and policies of their respective jurisdictions (including complete

and accurate disclosure of information to any regulatory body to which any

party hereto may be subject) that concern this Agreement in any manner

whatsoever; and (ii) notify the other party in a timely manner regarding any

changes in such laws, regulations, rules, procedures and policies which may

affect their respective performance of this Agreement.

 

 

ARTICLE 5.   PAYMENTS

 

                5.1          Service Fees and Payment. 

The fees to be paid by Alliance to Equitable in consideration of the

Services (the “Service Fees”) shall be as set forth in Schedule F attached

hereto. Alliance and Equitable agree that: 

(i) the Service Fees have been calculated in accordance with, and have

been based upon, Equitable’s direct and indirect costs and expenses as

determined by Equitable in accordance with Section 1505 of the New York

Insurance Law and New York Insurance Department Regulation No. 33 and, as

applicable, in conformity with generally accepted accounting principles in the

United States of America; and (ii) that the Service Fees do not exceed such

costs and expenses.

 

 

ARTICLE 6.  

AUDIT RIGHTS

 

                6.1          Books and Records. 

Equitable shall prepare and maintain reasonably detailed books, accounts

and records concerning the Services rendered to Alliance.  Equitable agrees that its record keeping obligations

in this Section 6 hereof shall include the obligation to maintain financial and

accounting records that are necessary to support the commercial reasonability

and industry consistency of this Agreement.

 

                6.2          Inspection Rights. 

In addition to any other right or remedy of Alliance, Alliance shall, at

any time during the term of this Agreement , have the right to visit any

location of Equitable for the purpose of, and to, examine, audit and inspect

such books, accounts and records, together with any other aspect of Equitable’s

provision of the Services hereunder upon forty–eight (48) hours prior

written notice.  Any such audit or

inspection by Alliance shall not unreasonably interfere with, or in any way,

disrupt Equitable’s normal commercial or administrative operations, and may be

conducted during ordinary business hours (unless otherwise agreed to by the

parties) at Equitable’s EDP Facility, and shall be subject to Alliance’s

designated representative agreeing to Equitable’s reasonable and standard

confidentiality arrangements, which shall be substantially consistent with

Schedule H. Alliance agrees to provide Equitable, and to instruct its auditors

to provide Equitable, with a copy of the portions of each written report

concerning the Services prepared in connection with any such audit.

 

 

3

 

                6.2.1        Subject

to the limitations of Section 6.2, the inspection rights shall include, without

limitation, the right of Alliance’s internal audit department, in coordination

with Equitable’s internal audit department, to conduct physical and data

security inspections and data center operational reviews (including

tape/catridge inventory and inspections and offsite data shipping procedures)

of the data center, including meeting with data operations and other

appropriate personnel, and reviewing equipment being used to process Alliance’s

data, to obtain an independent assessment of physical security and data center

operations.

 

 

ARTICLE 7.  

TERM AND TERMINATION

 

                7.1          Term. 

(1)  Except as otherwise provided

herein, this Agreement shall commence as of the date hereof and continue until

December 31st, 2003. This Agreement shall automatically renew and continue for

successive one (1) year periods unless Equitable provides Alliance with at least

twelve (12) months prior written notice or Alliance provides Equitable with at

least six (6) months prior written notice during the initial term of their

intention not to renew this Agreement, or either party provides the other party

with at least six (6) months prior written notice thereafter of its intention

not to renew such successive one (1) year period.  Either party shall have the right to terminate this Agreement at

any time whatsoever immediately upon written notice to the other party in the

event that the notifying party is legally prohibited, by any court of competent

jurisdiction or regulatory authority in the United States of America, from

having any or all of the Services performed by Equitable, and in such event,

this Agreement shall terminate upon the effective date of any such prohibition.

 

                (2)           Any

time after October 31, 2002, Alliance may terminate this Agreement without

cause upon at least six (6) months prior written notice to Equitable.  In the event Alliance and Equitable cease to

be Affilatesas defined in Section 9 of Schedule G, either party will have the

right to terminate this Agreement upon at least six (6) months notice.  In the event Alliance continues to be an

affiliate of Equitable but the majority of the partnership interests of

Alliance are held by an entity other than Equitable or any of its subsidiaries,

then this Agreement will have to be submitted to the New York Insurance

Department (“NYID”) for review.  In such

event Equitable will have right to amend this agreement if necessary to respond

to the objections raised by the NYID. 

In the event neither party terminates pursuant to this section, and the

continuing provision of services under this Agreement results in additional

costs to Equitable, such costs will be charged to Alliance consistent with

Article 5 hereunder.

 

                (3)           In the event that either party

exercises its termination rights under Subsection 7.1(1) or Subsection 7.1(2)

or Section 4(b) of Schedule G, the terminating party shall financially

compensate the other party in accordance with the formula and guidelines set

out in Schedule E attached hereto, in complete and final satisfaction, and in

full substitution, of any other remedies and rights that the non–terminating

party may have in any connection therewith.

 

 

ARTICLE

8.   MISCELLANEOUS

 

                8.1          Definitions. All capitalized terms not otherwise

defined in the text of this Agreement shall have the meaning ascribed in

Schedule G herein.

 

 

4

 

                8.2          Governing

Law and Attornment. This Agreement shall be governed by, and

construed in accordance with, the laws of the State of New York without regard

to the State of New York’s conflicts of law rules. The parties hereto submit

and attorn to the non–exclusive jurisdiction of the State and federal

courts located in the State of New York.

 

 

 

                This Agreement is hereby

executed and delivered by each of the parties hereto as of the effective date

first set out herein.

 

 

	

  Alliance

  Capital Management L.P.

  	

   

  	

  The

  Equitable Life Assurance

  	

   

  
	

  By:

  Alliance Capital Management Corporation,

  	

   

  	

  Society

  of the United States

  	

   

  
	

  Its

  General Partner

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ John D. Carifa

  	

   

  	

  By:

  	

  /s/ William Levine

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Name:

  	

  John D. Carifa

  	

   

  	

   

  	

  Name:

  	

  William Levine

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Title:

  	

  President & COO

  	

   

  	

   

  	

  Title:

  	

   Executive

  Vice President & CIO

  	

   

  
										

 

 

5

 

SCHEDULE A — SERVICES

 

 

1.             Service Description

 

                On April 22, 

2001 (the “Start Date”), Equitable shall provide Alliance with the all

of the services set forth herein including, but limited to, the transmission,

storage, maintenance, processing and protection of certain Alliance Companies’

information and data (“Services”). It is understood that Alliance assistance

will still be required for a reasonable period, not to exceed 2 months beyond

the Start Date , particularly with respect to problem determination and

resolution, scheduling, security administration and data recovery.  . 

Service levels set forth below shall be reevaluated and

reestablished  upon the sixth month anniversary

of the Start Date and shall, at least, be equivalent in quality and nature

(type and extent) to those services listed below.

 

(A) Mainframe Computer & Telecommunications Operations

 

Equitable will operate

and control the MVS mainframe and telecommunications equipment, which consist

of the following subsystems:

 

(i) JES

 

Equitable is responsible

for providing adequate spool space and responsive spooling services for

Alliance applications to support 

Alliance operational specifications. 

Alliance shall acquire, install and maintain its printers at its

locations globally and any necessary interface equipment.  Alliance shall be responsible for all

supplies, maintenance and usage charges related to these print facilities.

 

(ii) TSO

 

Equitable shall provide

the TSO users with such foreground and background services that meet the

service standards set forth below in Section 2 of this Schedule A.

 

(iii) TCP/IP

 

Equitable  shall

provide high speed TCP/IP network connectivity between Alliance and Equitable Leonia

facility.   This service is the

transport mechanism for communication between Alliance offices and the Alliance

LPARS hosted at Equitable.  This access

includes, DNS, TN3270 emulation, FTP between open systems and IP Printing.   The standards are set forth below in

Section 2 of Schedule A.

 

(iv) CICS

 

Equitable shall provide

access to Alliance on-line CICS applications in accordance with the service

standards set forth below in Section 2 of this Schedule A

 

 

A-1

 

(v) VTAM, NCP, RJE, NJE, Mailbox

and/or Tracs & NDM (Connect Direct)

 

Equitable is responsible

for defining the logical and physical network and maintaining it in accordance

with the standards set forth below in Section 2 of this Schedule A.

 

(B) Tape/Cartridge and Disk Management Services

 

(i) Library Maintenance

 

Equitable shall maintain

a tape library process that provides reasonably responsive retrieval, mounting

and filing of Alliance’s tape volumes in accordance with Alliance processing requirements

as provided to Equitable, as such may be modified pursuant to the Change

Management process set forth in this Agreement and standardization efforts set

forth in Schedule B (the “Processing Requirements”).

 

(ii) Off-site Storage

 

Equitable is responsible

for retaining volumes off-site as agreed upon and providing availability for

retrieval at Equitable’s off-site storage vendor’s facility based on the

Alliance Processing Requirements including transportation to and from the

off-site storage facility.

 

(iii) Tape/Cartridge Volume

Management

 

Equitable is responsible

for providing availability of an adequate number of volumes for output

recording based on the Alliance Processing Requirements.  Alliance is responsible for defining the

tape retention policies that support Alliance’s business requirements complying

with an agreed upon retention policy that supports the controlled growth of

volumes.

 

(iv) Disk Space Management

 

Equitable is responsible

for providing availability of adequate disk space for processing Alliance’s

applications based on the Alliance Processing Requirements.  Alliance is responsible for complying with

an agreed upon space management policy that supports the controlled growth of

on-line disk data.

 

(v)  Disk Data Recovery

 

Equitable is responsible

for providing that all on-line operating system and application data is backed

up and recoverable based on the Alliance Processing Requirements.

 

(C) Performance Management

 

(i) Operating System

 

Equitable shall provide

mainframe services in accordance with the agreed upon service levels set forth

herein and report results on a monthly basis. 

The current Alliance operating system will be imported into the

Equitable EDP Facility on or before the Start Date and shall be operated in a

manner that is technologically segregated and partitioned 

 

 

A-2

 

(logically or physically)

from all other Equitable EDP Facility operating systems.  Equitable shall be responsible for

monitoring and tuning the operating system, with Alliance’s support if

required.

 

(ii) Applications

 

Alliance is responsible

for its applications.  Equitable will

provide necessary assistance to Alliance in isolating application performance

problems and recommending solutions.

 

(iii) Telecommunications

 

Equitable shall manage

and supervise, for and on behalf of Alliance, the telecommunication services

related to the Services. With respect to SNI partners, Equitable will

coordinate troubleshooting and supervise with Alliance’s support.

 

(D) Capacity Planning

 

(i) Resource Utilization

 

Equitable is responsible

for monitoring and reporting Alliance’s resource utilization.  Reporting shall consist of month and

cumulative year-to-date TAPE, CPU & DASD utilization. Equitable will

provide, where reasonable, customized resource usage reports based on

Alliance’s business and transaction groupings. Equitable will provide adequate

capacity to meet Alliance’s Processing Requirements.

 

(ii) Planning & Notifications

 

At  a minimum, on a yearly basis during the term

of this Agreement, consistent with Equitable’s and Alliance’s budget processes

Equitable and Alliance  will participate

in the annual capacity forecasting process for the purpose of projecting Alliance’s

capacity requirements for the following year. 

This includes: CPU, DASD, TAPE and telecommunications.  Alliance also has the responsibility of

providing early notification (at least thirty (30) days if reasonably possible)

of changes in its demand for resources. Any change in forecasted demand may

result in an adjustment to the charges payable by Alliance, in accordance with

Schedule F.

 

(E) Security

 

(i) Physical Plant

 

Equitable is responsible

for maintaining a physically secure environment, consistent with its current

standards.

 

(ii) Data

 

Equitable shall be

responsible for physical data security in connection with the Services, which

includes the engineering and support of RACF or similar security product and

any underlying security products and/or system exits.   Alliance will perform security administration functions, which

includes ID creation and deletion with respect to Alliance Companies’

operations globally.  Equitable shall

secure Alliance Companies’ data from all other Equitable data.

 

 

A-3

 

(iii) Remote Access

 

Equitable and Alliance

will provide a secure remote access process that adheres to guidelines

published by both companies.

 

(F) Disaster/Recovery

 

(i) General

 

Equitable shall provide

an alternate-processing site (Hot Site) for all of Alliance’s mission critical,

mainframe production applications as defined by Alliance from time to

time.  From the Start Date  through October 31, 2001, this requirement

shall be met through Alliance’s existing agreement with Comdisco.  Payment for such agreement from April 1,

2001 is included in the annual Service Fee.Equitable will select the disaster

recovery service provider to fulfill its obligations hereunder after October

31, 2001.

 

(ii) Plan Development

 

Equitable and Alliance

are jointly responsible for the development of an effective disaster recovery

plan. Alliance will, in accordance with Equitable disaster recovery procedures,

identify its mission critical applications and files and provide reasonable

assistance to Equitable to develop & support an appropriate recovery plan.

 

(iii) Plan Maintenance

 

Alliance is responsible

for stipulating application and data access priorities, including all related

disaster/recovery documentation. 

Equitable is responsible for analyzing changes in recovery requirements

and adjusting the integrated plan to fulfill new requirements.  Equitable is also responsible for

coordinating periodic drills to provide recoverability testing and for managing

the recovery vendor.

 

(iv) Off-site Storage

 

Alliance is responsible

for identifying mainframe mission critical files that must be housed off-site

which shall be stored based on the Alliance Processing Requirements as agreed

to by the parties.. Equitable shall provide off-site storage for the Alliance

mainframe mission critical files and shall manage the off-site storage process

and vendor.

 

(G) Software Services

 

(i) Selection

 

 In accordance with Section 2.2., of this

Agreement, Equitable and Alliance have a joint responsibility for selection of

new or replacement operating system software for the purpose of meeting

Alliance’s Processing Requirements. 

Alliance shall use its reasonable efforts to coordinate with Equitable’s

operating systems and update levels therefor.

 

 

A-4

 

(ii)  Vendor Management

 

Equitable is responsible

for managing its mainframe and telecommunications system software suppliers and

maintainers.  Alliance is responsible

for managing all applications systems vendors used by Alliance, including those

listed  in Section 1B of Schedule C.

 

(iii)  Contract Management

 

Equitable is responsible

for managing its mainframe and telecommunications operating system software

contracts.  Alliance is responsible for

managing all application systems contracts including those listed in Section 1B of Schedule C.

 

(iv) Installation & Maintenance

 

Equitable is responsible

for installing and maintaining operating system software and program products

based on Alliance’s Processing Requirements . 

Equitable is responsible for maintaining software currency of vendor

supported products to support Alliance’s business requirements and for problem

determination and resolution of related problems.

 

(v) Standardization/Consolidation

Assistance

 

Alliance agrees to

provide the necessary assistance to Equitable in reducing the number of unique

software products it requires.  Any

reduction will be based on a mutual agreement of both companies.  In addition, Alliance agrees to migrate to

Equitable’s standard operating system product set on a mutually agreeable

schedule.

 

(H) Hardware and Software

 

(i) Selection

 

Hardware shall include

mainframe, peripherals and telecommunications equipment exclusive of

workstations, local area networks,  and

remote printers located throughout Alliance globally. Equitable is responsible

for selection  of new or replacement

hardware to meet both Equitable and Alliance’s processing needs.

 

(ii)  Vendor Management

 

Equitable is responsible

for managing  hardware and software

suppliers and maintainers, excluding Alliance applications as defined in

Section 1(B) of Schedule C.

 

(iii)  Contract Management

 

Equitable is responsible

for managing  hardware and software

related contracts, excluding Alliance applications as defined in Section 1(B)

of Schedule C.

 

(iv) Installation & Maintenance

 

Equitable is responsible

for installing, operating and maintaining hardware and  software, excluding Alliance applications as

defined in Section 1(B) of Schedule C.

 

 

A-5

 

(I) Application Support

 

(i) Change Management

 

Alliance will notify

Equitable of application installations and/or modifications prior to

implementation.  This notification will

work through both companies Change Control framework. Alliance will provide

reasonable support for new/changed application installations.

 

(J) Facility

 

Equitable’s EDP Facility

provides  conditioned raised floor

space, which includes water detection and HVAC systems.  The facility is insulated against power

failures/fluctuations by an uninterruptable power supply and two standby diesel

generators.  The facility is protected

by a ceiling-mounted, pre-action, dry pipe sprinkler system and a below-floor

Halon fire suppression system.  A plant

security force is on-site 24 hours/day, 365 days/year, and is aided by a

closed-circuit television system to monitor the facility.

 

 

2.             Processing Service Levels:

 

Equitable shall provide

all Services  specified herein, and

shall meet or exceed service levels set forth herein, to meet Alliance

electronic data processing requirements in accordance with this Agreement.   Availability as set forth below will be

calculated and reported on a monthly and year-to-date basis.  Outages as a result of operator, equipment,

telecommunications controlled by Equitable, operating system software,

unscheduled maintenance and facility failure will be charged against

availability.  Application or Alliance

caused (whether by act or failure to act where there is a duty to act) outages

will not be charged nor will outages for scheduled maintenance be charged

against availability.  All references to

time are Eastern Standard Time.

 

Allowance will be made

for periods of regular scheduled system maintenance, such as IPL’s, operating

system and program product upgrades.

 

Alliance represents and

warrants that the service levels set forth below have been achieved

continuously for the six (6) months preceding the Start Date.  In the event of a misrepresentation

hereunder, the service levels to which the misrepresentation relates will be restated

downward based upon the mutual agreement of the parties acting reasonably and

in good faith .

 

The following preliminary

electronic data processing service levels shall be provided:

 

(A) MVS, TSO, CICS, Control-M, CA-7,

Telecommunication Access Methodology (“TCPIP”)(excluding Alliance

applications.)

 

Availability

 

These services are

required 24 hours/day, 7 days/week.  The

availability for these services shall be 99.9% on a monthly basis.

 

 

A-6

 

(B) On-line CICS

 

Availability

 

The availability for

production CICS regions shall be 99.9% on a monthly basis.  The availability for testing/development

CICS regions shall be 99.0% on a monthly basis.  The necessary availability period for the different CICS regions

is shown in the following table.

 

	

  REGION

  	

   

  	

  Application

  	

   

  	

  LPAR

  	

   

  	

  SLA Start

  	

   

  	

  SLA End

  
	

  CICSFITS

  	

   

  	

  Fixed Income Trading

  	

   

  	

  O39P

  	

   

  	

  7:00

  a.m.

  	

   

  	

  7:00

  p.m.

  
	

  CICSPMP4

  	

   

  	

  Portfolio Management System —

  IMS (prod)

  	

   

  	

  O39P

  	

   

  	

  7:00

  a.m.

  	

   

  	

  10:30

  p.m.

  
	

  CICSPMQ4

  	

   

  	

  Portfolio Management System —

  IMS (QA)

  	

   

  	

  O39P

  	

   

  	

  7:00

  a.m.

  	

   

  	

  10:00

  p.m.

  
	

  CICSPMT4

  	

   

  	

  Portfolio Management System —

  IMS (test)

  	

   

  	

  O39D

  	

   

  	

  7:00

  a.m.

  	

   

  	

  10:00

  p.m.

  
	

  CICSPRD1

  	

   

  	

  Global Access Card — MAP

  	

   

  	

  O39P

  	

   

  	

  8:00

  a.m.

  	

   

  	

  7:00

  p.m.

  
	

  CICSPRD2

  	

   

  	

  Smart Stream — IE

  	

   

  	

  O39P

  	

   

  	

  7:00

  a.m.

  	

   

  	

  12:00

  a.m.

  
	

  CICSPRD3

  	

   

  	

  Portfolio Accounting Core

  Engine

  	

   

  	

  O39P

  	

   

  	

  4:00

  a.m.

  	

   

  	

  7:00

  p.m.

  
	

  CICSREGR

  	

   

  	

  PACE — Regression (test)

  	

   

  	

  O39D

  	

   

  	

  N/A

  
	

  CICSTST1

  	

   

  	

  PACE — Test

  	

   

  	

  O39D

  	

   

  	

  4:00

  a.m.

  	

   

  	

  3:00

  a.m.

  
	

  CICSY2K1

  	

   

  	

  Y2K — Test

  	

   

  	

  O39D

  	

   

  	

  8:00

  a.m.

  	

   

  	

  7:00

  a.m.

  
	

  CICSY2T1

  	

   

  	

  Y2K — Test

  	

   

  	

  O39D

  	

   

  	

  8:00

  a.m.

  	

   

  	

  7:00

  a.m.

  
	

  CICSY2T4

  	

   

  	

  Y2K — Test

  	

   

  	

  O39D

  	

   

  	

  8:00

  a.m.

  	

   

  	

  7:00

  a.m.

  

 

Production Internal Response Time

 

The monthly requirement

is 95% of all transactions requiring equal to or less than .25 seconds of

CPUTIME processed within 1.0 seconds internal host response time.

 

(C) TSO Interactive Testing

 

Availability

 

The TSO availability

requirement is 24 hours/day, 7 days/week. 

The availability shall be 99.9% on a monthly basis.

 

TSO Transaction Response Time

 

The monthly requirement

is 95% of all Period 1 transactions requiring equal to or less than 800

standard IBM service units processed within .7 seconds.  This is subject to Alliance having TSO

Monitor installed in its current environment to allow measurement and reporting.

 

(D) Batch Processing

 

Scheduled Commitments

 

All critical batch

processing as set forth in Table     below  will be completed at the Equitable processing

site as set forth in the Table..  The

service level shall be 95% completion of mainframe processing.

 

 

A-7

 

	

  Application

  	

   

  	

  Job

  	

   

  	

  SLA

  
	

  AUM

  	

   

  	

  AUX270DP

  	

   

  	

  7:30 a.m.

  
	

  AUM

  	

   

  	

  AUX470DP

  	

   

  	

  7:30 a.m.

  
	

  Davenport

  	

   

  	

  DAVT01DP

  DAVT02DP

  	

   

  	

  10:30 p.m.

  
	

  GAC

  	

   

  	

  GAC009DP

  	

   

  	

  12:00 a.m.

  
	

  GAC

  	

   

  	

  GACTR4DP

  	

   

  	

  5:00 a.m.

  
	

  GAC

  	

   

  	

  GAC050DP

  	

   

  	

  6:00 a.m.

  
	

  GAC

  	

   

  	

  GAC032DP

  	

   

  	

  5:30 a.m.

  
	

  GAC

  	

   

  	

  GAC033DP

  GAC033D2

  	

   

  	

  5:30 a.m.

  
	

  Hazlet

  	

   

  	

  HAZT01DP

  HAZT02DP

  	

   

  	

  10:30 p.m.

  
	

  PACE

  	

   

  	

  PAXAS20V

  	

   

  	

  1:45 a.m.

  
	

  PACE

  	

   

  	

  PAXTOKYO

  	

   

  	

  3:00 a.m.

  
	

  PCR

  	

   

  	

  PCREL1DT

  PCREL2DT

  PCREHMDT

  	

   

  	

  8:00 p.m.

  

 

 

(E) The Equitable Telecommunications

Network (SNA & TCP/IP)

 

Availability

 

The Equitable portion of

the telecommunications network shall be available 24 hours a day, 7 days a

week.  The availability shall be 99.9%,

on a monthly basis.

 

(F) Disaster Recovery

 

Availability

 

Equitable’s recovery plan

shall provide for the recovery of Alliance’s mission critical production

applications within 2 hours of disaster declaration with the data latency at

zero from point of failure (that is, data that is located in Alliance’s

Secaucus disaster recovery site will be mirrored from Equitable’s Leonia Data

using SRDF in semi-synchronous mode.) 

This plan must be executed minimally once a year to include CICS,

Network connectivity (SNA & TCP/IP) and batch processing.  Alliance shall cooperate in developing and

testing this plan.

 

(G) Credits

 

(i)            Starting on June 1, 2001, credits

for not meeting the service levels set forth above will be  calculated monthly  based on the service levels set forth above. The credit for

failing to meet any service level during any calendar month shall equal to 1%

of the annualized Service Fees to be paid by Alliance hereunder for the current

calender year for each service level not met, provided that  Alliance provides a written statement

briefly describing  the impact on

Alliance’s business.  A credit shall be

earned only for the initial service level failure and not for any service level

failure that results from or is caused by the initial service level failure.

 

 

A-8

 

(ii)           Equitable

will have the opportunity to earn back or negate a credit if it achieves the

service level on the failed service for the two consecutive months following

the month of failure and exceeds the service level in one of the two months.

 

(iii)          Credits will in no case reduce the

Service Fee due under Section 1.1 of Schedule F for the current year and  will first be applied against  payments due from Alliance relating to

excess usage pursuant to Sec. 1.3 of Schedule F in the year the credit is earned.  In the event that the credits exceed excess

usage charges (“Unused Credit”), the Unused Credit, which shall not exceed

$100,000, will be applied against the following year’s Service Fee.  If the Unused Credits arise in the final

year of this Agreement, Equitable shall pay the amount of the Unused Credit

(not to exceed $100,000) to Alliance in US dollars by wire transfer to the

account designated by Alliance.

 

(iv)          In the

event Equitable exceeds all service levels for six (6) consecutive months in a

calendar year, Equitable will be entitled to $100,000 to offset any credits earned

or to be earned by Alliance in that calendar year.  Such offset earned in a calendar year shall not be carried over

to a subsequent year.

 

(v)            The

credits available to Alliance under this Schedule A shall be Alliance’s sole

and exclusive remedy for a failure by Equitable to meet any service level,

except for Alliance’s right to declare a termination of this Agreement in the

event Equitable fails to meet any three or more service levels (but not

necessarily the same three service levels) for six consecutive months.  If Alliance terminates hereunder, Equitable

shall pay Alliance’s actual and necessary transition costs of moving to a new

service provider (including Alliance), provided however that (a) such costs

shall not exceed $2,500,000 and are supported by documentation reasonably

acceptable to Equitable and (b) all credits accrued by Alliance will be negated

by a termination hereunder.

 

(vi)          In the

event that the Services are being provided through Equitable’s disaster

recovery site, Alliance shall not be entitled to claim a breach or termination

of this Agreement because of the failure to meet the service levels, nor shall

Alliance be entitled to any credits hereunder, during the disaster recovery

period.

 

 

A-9

 

SCHEDULE B

 

ALLIANCE OBLIGATIONS

 

 

In addition to any other

obligations set out in the Agreement:

 

(a)           Software applications

 

Alliance is

responsible for the licensing and maintenance and maintaining current levels of

its Applications Systems set  forth in

Section 1 (B) of Schedule C. Alliance shall provide reasonable assistance to

Equitable in changing any Equitable’s resources to higher, supported levels of

operating system software and mainframe and telecommunications hardware.

 

(b)           Standardization

 

Alliance must

provide reasonable cooperation and personnel resources to assist in software

and hardware standardization efforts. 

This includes providing sufficient time in its processing schedules to

allow testing and implementation of new software and hardware.

 

(c)           Transfer to Equitable EDP Facility

 

1.             Cooperation

 

Alliance shall

provide reasonable cooperation, information and resource in the planning and

execution of the Alliance Systems transfer to the Equitable facilities.

 

2.             Assistance

 

Alliance shall

provide reasonable time and personnel assistance in transitioning production

and support responsibilities.

 

3.             Documentation

 

Alliance shall

provide the appropriate documentation, procedures and media to support all

processing. Alliance shall provide reasonable assistance to Equitable in

understanding of any such material that is in a foreign language.

 

 

 

SCHEDULE C

 

EQUITABLE RESOURCES

 

 

1.             SOFTWARE

SUPPORTING ALLIANCE’S SYSTEMS

 

A)           

 

 

 

B)            Alliance

Applications Systems:

 

	

  Alliance

  Applications Systems

  
	

  ADMIN

  	

  Systems

  
	

  ADP

  	

  Print Image Reporting

  
	

  ADV

  	

  Advest

  
	

  AMT

  	

  Ameritrade

  
	

  AUM

  	

  Assets Under Managemnet

  
	

  BIL

  	

  Billing 

  
	

  BLR 

  	

  William Blair

  
	

  BNY

  	

  Bank of New York

  
	

  BNY

  	

  Bank of New York

  
	

  BRS

  	

  Bear Stearns

  
	

  BRS

  	

  Bear Stearns

  
	

  BTL

  	

  Butler Wick

  
	

  CAMRA

  	

  CAMRA

  
	

  CMB

  	

  Cumberland

  
	

  CNV

  	

  Legend Financial Services

  
	

  COM

  	

  Commissions

  
	

  CRD

  	

  DST Cardin

  
	

  CRW

  	

  Crowell Weedon

  
	

  DAS

  	

  Distributed Assistance Systems

  
	

  DAV

  	

  Davenport

  
	

  DAV

  	

  Davenport

  
	

  DIS

  	

  Discovery

  
	

  DISPATCH

  	

  Dispatch (Report Distribution)

  
	

  DTC

  	

  Depository Trust Company

  
	

  ERN

  	

  Ernst & Company

  
	

  FIT

  	

  Fixed Income Trading Systems

  
	

  FLT

  	

  Fleet

  
	

  FOL

  	

  Folger Nolan

  
	

  FSG

  	

  First Securities

  
	

  GAC

  	

  Global Acces Card (will

  replace MAP)

  
	

  GOG

  	

  MAP Intergrated 

  
	

  GST

  	

  Gorian Thorne

  
	

  HAZ

  	

  Hazlet, Burt & Watson

  
	

  HRZ

  	

  Herzog

  
	

  HUM

  	

  Wayne Hummer

  
	

  INC

  	

  Investor National

  
	

  INS

  	

  Institutional Monthly

  
	

  INT

  	

  Institutional Accounts

  
	

  JOS

  	

  Josephthal

  
	

  KCK

  	

  Purchase Kickers

  
	

  LEB

  	

  Lebenthal

  
	

  MAP

  	

  Managed Asset Plan

  
	

  MAP

  	

  Managed Asset Plan

  
	

  MBS

  	

  Mortgage Back Securities

  
	

  MFO

  	

  Mutual Fund Operations (Sales)

  
	

  MLS

  	

  Miller Schroeder

  
	

  MST

  	

  Managed Asset Plan

  
	

  OMN

  	

  Omnibus

  

 

 

C-2

 

	

  PACE

  	

  Porfolio Accounting Core

  Engine

  
	

  PACERQST 

  	

  PACE On-Request Reporting

  
	

  PCR-CORE

  	

  Pension Client Reports

  
	

  PCR-CPMS

  	

  Pension Client Reports

  
	

  PCR-POOL

  	

  Pension Client Reports

  
	

  PEN

  	

  Penson

  
	

  PER

  	

  Pershing

  
	

  PER

  	

  Pershing

  
	

  PMS

  	

  Investment Management System

  
	

  PMV

  	

  Portfolio Management Views

  
	

  PST

  	

  Managed Accounts

  
	

  RAG

  	

  Ragen McKenzie

  
	

  SCHEDD

  	

  Schedule D (Regulatory

  Reporting)

  
	

  SMT

  	

  Smartstream

  
	

  SUN

  	

  Sunpoint

  
	

  SWP

  	

  Sweep Systems

  
	

  TRD

  	

  Trading 

  

 

 

C-3

 

3.             EQUITABLE

EQUIPMENT

 

                The following is a description of the initial

equipment configurations which will be installed at the Equitable EDP Facility,

to support the implementation of the Alliance Systems.

 

 

C-4

 

SCHEDULE D

 

SERVICES MANAGEMENT

 

 

1.            Transition

Assistance

 

Upon any

termination of this Agreement for any reason whatsoever, Equitable shall

provide reasonable assistance and good faith cooperation to Alliance to

facilitate and achieve the transition of the performance of all Services by

Equitable to either Alliance or another person designated by Alliance,

including without limitation, the support, services and resources set out in

Schedules A and C hereof.  All such

transition support, cooperation, assistance and services shall be deemed to be

included in the term “Services” used in this Agreement. Furthermore, and

without limiting the foregoing, Alliance shall have the option, exercisable

with no less than sixty (60) days notice prior to the termination date or the

expiration date of this Agreement, to request that Equitable’s Services and

this Agreement continue on a month to month basis subject to termination by

Alliance on thirty days notice after the termination date or the termination or

expiration date, as applicable, for the then applicable annual fee applied pro

rata. Alliance shall have the right to have this Agreement continue on a

monthly basis pursuant to this paragraph for up to one hundred and twenty (120)

days.  Any extension beyond the 120 days

will be until the end of the current calendar year.

 

2.             EDP

Service Report

 

Equitable shall

keep Alliance fully and accurately informed on a reasonable timely basis

concerning its provision of the Services. Without limiting the foregoing,

Equitable shall submit to Alliance a written monthly status report by the 15th

calendar day of the month which shall review the Services provided for each

preceding month, and reasonably detailed information concerning any failure of

Equitable to provide the Services for each preceding month. Without limiting

the foregoing, all such monthly reports shall include the date and time of any

relevant incidents, acts or omissions, the status of any such incidents, acts

or omissions as at the date and time such report is delivered to Alliance,

reasonably detailed information concerning the response, and corrective

measures undertaken by Equitable in response to any such situations, and

Equitable’s proposals, recommendations and options to both resolve any such

situations and preventative/pro-active measures it has taken or proposes to

take to prevent any such situation in the future.  The reports shall also include monthly usage of CPU, DASD and

TAPE.

 

 

 

3.             EDP

Service Management

 

In addition to the

staffing obligations of Equitable pursuant to Section 14 of Schedule G,

Equitable and Alliance shall jointly form a “Joint Services Management

Committee” composed of  representatives

of each of Equitable and Alliance, who shall meet on a reasonably regular basis

to review and discuss the provision of the Services and to resolve all issues

of concern to either party concerning this Agreement.  Except for notices issued pursuant to Section 5 of Schedule G of

this Agreement, all communication concerning this Agreement and the day-to-day

provision, and management, of the Services shall be conducted through the Joint

Services Management Committee.   The

initial representatives of each party to the Joint Services Management

Committee shall be as follows:

 

	

  Alliance:

  	

   

  	

  Howard Samborn

  	

   

  	

  Sal Raineri

  
	

   

  	

   

  	

  Senior Vice President

  	

   

  	

  Vice President

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Equitable:

  	

   

  	

  William Levine

  	

   

  	

  Andrew Kregar

  
	

   

  	

   

  	

  Executive Vice President and CIO

  	

   

  	

  Managing Director

  
	

   

  	

   

  	

  Project Executive

  	

   

  	

  Project Manager

  
	

   

  	

   

  	

  Charles Sokolski

  	

   

  	

  James Crosby

  
	

   

  	

   

  	

  Senior Vice President

  	

   

  	

  Managing Director

  

 

                Either party may at any time and

from time to time change its designated representative(s) upon written notice

to the other party.

 

4.             Dispute

Resolution

 

The purpose of this

Section is to set forth a framework and procedure under which Equitable and

Alliance shall use their best efforts to resolve any disputes that may arise

under this Agreement without resort to litigation. The parties agree to first

utilize a three-step process to accomplish this goal, engaging first in

informal discussion, and thereafter, to arbitration.

 

(1)            Joint Services Management Committee:

The parties shall first attempt to resolve all disputes, by submitting such

disputes to, for discussion and resolution by, the Joint Services Management

Committee.  If a resolution of such

dispute is not reached by the Joint Services Management Committee within ten

(10) Business Days of the submission of such dispute, then the parties shall

proceed in accordance with Subsection 4(2) of this Schedule D.

 

(2)            Discussions Between the

Parties:  In the event of a dispute

under this Agreement, including without limitation, any failure of the parties

to agree on a matter requiring settlement or agreement (a “Dispute”), the party

alleging the Dispute shall provide notice in accordance with Section 5 of

Schedule G giving particulars of the Dispute to the other party (the “Notice of

Dispute”).  The parties each agree to

appoint a representative and to cause their respective representatives to meet

as soon as possible in an effort to resolve the Dispute. Should the Dispute not

be resolved within ten (10) Business Days of the Notice of Dispute,

representatives of the parties at a senior management level shall attempt, in

good faith to resolve the Dispute in no more

 

 

D-2

 

than fifteen (15)

Business Days from the date of the Notice of Dispute.  All such representatives of the parties shall be referred to

hereafter as “Settlement Nominees,” and the fifteen (15) Business Day period

shall be referred to as the “Period of Discussion.”

 

(3)           Arbitration:  In the event that the Settlement Nominees

are unable to resolve the Dispute during the Period of Discussion, either party

may submit, within five (5) Business Days following the expiration of the

Period of Discussion, the Dispute to binding arbitration before three (3)

arbitrators in New York pursuant to the rules of American Arbitration

Association, except as modified below:

 

(a)          the

party (the “Initiating Party”) wishing to submit the Dispute to Arbitration

shall select one initial arbitrator and shall send a notice of the Dispute (the

“Arbitration Notice”) to the other party setting out the name of the arbitrator

so selected by such party;

 

(b)          The

other party (the “Recipient”) shall have ten (10) Business Days from receipt of

the Arbitration Notice to select a second arbitrator and to notify the

Initiating Party of the name of the arbitrator selected by the Recipient;

 

(c)          promptly

upon their selection and, in any event within seven (7) Business Days of the

appointment of the second arbitrator, the two arbitrators then selected shall

appoint a third arbitrator;

 

(d)          if

the Recipient fails to appoint a second arbitrator or the two selected

arbitrators fail to appoint a third arbitrator, the Initiating Party in the

event of a default by the Recipient or either party in the event of a default

by the two arbitrators will be free upon notice to the other party to request

that a court of competent jurisdiction in the state of New York promptly

appoint the second or third arbitrator, as applicable, and to notify each party

of such appointment;

 

(e)          the

parties shall agree in advance as to the manner in which the arbitration panel

shall promptly hear witnesses and arguments, review documents and otherwise

conduct the arbitration procedures and failing agreement within five (5)

Business Days from the date  of selection of the  third arbitrator, the arbitration panel

shall formulate its own procedural rules in accordance with the rules of the

American Arbitration Association and promptly commence and expeditiously

conduct the arbitration proceedings;

 

 (f)          the arbitration panel shall be

independent of the parties and, shall issue its decision (by majority or

unanimous decision) in writing within forty–five (45) calendar days from

the date of appointment of the third arbitrator;

 

(g)          nothing

in this Section 4 of Schedule D shall prevent either party from applying to a

court of competent jurisdiction for equitable relief pending final disposition

of the arbitration proceeding;

 

(h)          in

no event shall the arbitrators have the jurisdiction to amend or vary the terms

of this Agreement;

 

 

D-3

 

(i)            the arbitration award shall be given

in writing and shall be final and binding on the parties, not subject to any

appeal, except in the event of any corruption, fraud, or the like, or evident

partiality or misconduct by the arbitrator(s), or where the arbitrator(s) exceed(s)

or abuse(s) their powers, or where a final and definitive award is not made by

the arbitrator(s) on a timely basis or contrary to their terms of appointments,

and shall deal with the question of costs of arbitration and all matters

related thereto;

 

(j)            judgment

upon the award rendered may be entered in any court having jurisdiction, or,

application may be made to such court for a judicial recognition of the award

or an order of enforcement thereof, as the case may be; and

 

(k)           subject

to Paragraph (g) of this provision, it shall be a condition precedent to the

bringing of any legal proceedings with respect to the Dispute that the

arbitration procedure set out in this Section 4 of Schedule D shall have taken

place.

 

 

D-4

 

SCHEDULE  E 

 

LIABILITY AND INDEMNIFICATION

 

 

1.             Equitable

Indemnification

 

(1)           Notwithstanding Section 3 of this

Schedule E, Equitable hereby indemnifies and holds Alliance and Alliance

Companies harmless for any, and all, harm, liability, expense, costs, loss or

damage, (whether arising in negligence, tort, equity, contract or otherwise)

that arises out of, or in any connection with, either any breach whatsoever of,

or action, suits, proceedings or claims concerning, any of Equitable’s obligations

pursuant to Section 1 and 2 of Schedule H, with respect to the confidentiality

of Alliance Companies’ Confidential Information as defined in Schedule H, or

Equitable’s obligations pursuant to Section 18(l)(vi) of Schedule G of the

Agreement.

 

(2)           Alliance shall promptly notify

Equitable of any information, or reasonable belief of Alliance, concerning any

suit, claim, action, proceeding or written communication that may exist

concerning, in any way, the indemnities provided in Subsection 1(1) of this

Schedule E, and Equitable agrees that it shall fully and promptly co–operate

with, and assist, Alliance and Alliance Companies in any such defense, action,

suit, claim or proceeding to which Alliance may become involved or a party. The

foregoing notwithstanding, Equitable shall have the right in its sole

discretion, and at its expense, to participate in and control the defense of

any such suit, claim, action or proceeding and in any and all negotiations with

respect thereto, and neither Alliance nor any Alliance Companies shall settle

any such suit, claim, action or proceeding without Equitable’s prior written

approval.

 

(3)           Equitable shall maintain reasonable

insurance coverage to protect itself in connection with any liability

whatsoever that may arise for Equitable in any connection with any act or

omission of Equitable in any connection with this Agreement, including without

limitation Equitable’s indemnification of Alliance pursuant to this Section 1

and Section 4 of this Schedule E.  All

such insurance shall be of an amount, and shall be provided to Equitable on

terms and conditions, that is reasonably acceptable to Alliance.  The existence or non-existence of any

insurance coverage shall in no way limit or otherwise affect Equitable’s

indemnification obligations hereunder.

 

(4)           Without limiting the foregoing, all

such insurance coverage shall be evidenced by insurance policies which have

terms and conditions reasonably satisfactory to Alliance and such insurance

policies shall not be cancelable or subject to reduction of coverage, or other

modification, except after thirty (30) days prior written notice to

Alliance.  Equitable will deliver to

Alliance, upon request, certificates or other satisfactory evidence of any

insurance required to be maintained by Alliance hereunder and a certified copy

of the original insurance policies within thirty (30) days of Alliance’s

request.  Any loss under any of the

insurance policies provided for herein will be adjusted with the associated

insurance company by Equitable at Equitable’s sole expense, subject to

Alliance’s approval.

 

 

 

2.             Alliance

Indemnification

 

(1)           Notwithstanding Section 3 of this

Schedule E, Alliance hereby indemnifies and holds Equitable harmless for any,

and all, harm, liability, expense, cost, loss or damage, (whether arising in

negligence, tort, equity, contract or otherwise) that arises out of, or in any

connection with, either any breach whatsoever of, or actions, suits,

proceedings or claims concerning, any of Alliance’s obligations pursuant to

Section 1 and 3 of Schedule H, with respect to the confidentiality of

Equitable’s Confidential Information or Alliance’s representations, warranties

and covenants pursuant to Paragraph 18(2)(iii) of Schedule G of the Agreement.

 

(2)           Equitable shall promptly notify

Alliance of any information, or reasonable belief of Equitable, concerning any

suit, claim, action, proceeding or written communication that may exist

concerning, in any way, the indemnities provided in Subsection 2(l), and

Alliance agrees that it and any associated Alliance Company shall fully and

promptly co­operate with, and assist, Equitable in any such defense, action,

suit, claim or proceeding to which Equitable may become involved or a

party.  The foregoing notwithstanding,

Alliance shall have the right in its sole discretion, and at its expense, to

participate in and control the defense of any such suit, claim, action or

proceeding and in any and all negotiations with respect thereto, and Equitable

shall not settle any such suit, claim, action or proceeding without Alliance’s

prior written approval.

 

(3)           Only to the extent insurance is not

provided under an Equitable insurance program, Alliance shall maintain

reasonable insurance coverage to protect itself in connection with any liability

whatsoever that may arise for Alliance in any connection with any act or

omission of Alliance in any connection with this Agreement, including without

limitation Alliance’s indemnification of Equitable pursuant to this Section 2

and Section 4 of this Schedule E.  All

such insurance shall be of an amount, and shall be provided to Alliance on

terms and conditions, that is reasonably acceptable to Equitable.

 

(4)           Without limiting the foregoing, all

such insurance coverage shall be evidenced by insurance policies which have

terms and conditions reasonably satisfactory to Equitable and such insurance

policies shall not be cancelable or subject to reduction of coverage, or other

modification, except after thirty (30) days prior written notice to Equitable.  Alliance will deliver to Equitable, upon

request, certificates or other satisfactory evidence of any insurance required

to be maintained by Equitable hereunder and a certified copy of the original

insurance policies within thirty (30) days of Equitable’s request.  Any loss under any of the insurance policies

provided for herein will be adjusted with the associated insurance company by

Alliance at Alliance’s sole expense, subject to Equitable’s approval.

 

3.             Limitation

of Liability

 

Except as

otherwise provided in Section 1, Section 2, and Section 4 of this Schedule E,

Equitable and Alliance agree as follows:

 

(a)           Each

party’s liability to the other party for any and all direct harm, liability,

expense, cost, loss or damage, whether in negligence, tort, equity, contract or

otherwise, arising out of, or in connection with, this Agreement shall be

strictly limited, in the aggregate in respect of all incidents or occurrences,

to the amount of Two Million, Five Hundred Thousand ($2,500,000.00) Dollars;

 

 

E-2

 

(b)           Each party agrees that the other

party shall not be liable for any lost profits, failure to realize expected

savings, or any other indirect commercial or economic loss of any kind

whatsoever;

 

(c)           Each party agrees that except as

otherwise provided in this Agreement neither party shall be liable for any

harm, loss, damages, expenses, costs, suit, claim or demand whatsoever against

the other party that is made by any person or entity who is not a party to this

Agreement; and

 

(d)           UNDER NO CIRCUMSTANCES WILL EITHER

PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, THIRD PARTY, SPECIAL,

INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY EXPENSES, COSTS, LIABILITY, LOSS, OR

DAMAGE WHATSOEVER.

 

4.             Personal

Injury and Property Damage Indemnity

 

Notwithstanding

Section 3 of this Schedule E, Equitable and Alliance each agree to indemnify,

defend and hold harmless the other from any and all claims, actions, damages,

liabilities, costs and expenses, including reasonable attorneys’ fees and

expenses, arising out of third party claims for bodily injury or damage to

physical property, to the extent caused directly and proximately by the

negligence or willful misconduct of the other party, its employees, officers or

agents.

 

5.             Default

and Rights of Termination

 

                (1)           The occurrence of any one or more of

the following events shall be deemed to be 

an “Event of Default”:

 

(a)       if

either party either breaches any material covenant or obligation contained in

this Agreement, or consistently breaches any other obligations or covenants so

as to constitute a material breach of this Agreement;

 

(b)       if

Alliance fails to timely pay on amounts due hereunder;

 

(c)        if either party becomes

or is declared insolvent or bankrupt, is the subject of any proceedings

relating to its liquidation, insolvency or for the appointment of a receiver or

similar officer for it, makes an assignment for the benefit of all or

substantially all of its creditors, or enters into an agreement for the

composition, extension, or readjustment of all or substantially all of its

obligations, then Alliance may, by giving written notice thereof to Equitable,

terminate this Agreement as of the date specified in such notice; or

 

(d)      if a

governmental regulatory order or final judgment or decree in any jurisdiction

which materially and adversely affects the ability of either party to fulfill

its obligations under this Agreement shall have been made, issued, obtained or

entered and such order, judgment or decree shall not have been vacated,

discharged or stayed pending appeal within the applicable appeal period.

 

 

E-3

 

(2)           If either party commits an Event of

Default that is capable of being remedied and has not been remedied within

thirty (30) calendar  days after written

notice of the Event of Default has been delivered to such party, the

non-breaching party, may terminate this Agreement immediately upon the

expiration of such remedial time period, or any time thereafter upon written

notice thereof to the breaching party, provided that where an Event of Default

occurs pursuant to the provisions of Subparagraph 5(l)(c) and (d) hereof, the

non-breaching party shall not be obliged to provide a remedial period, but may

terminate this Agreement immediately upon the occurrence of such Event of

Default and upon written notice to the breaching party, and provided further

that where the Event of Default is Alliance’s failure to timely pay any amount

due hereunder, the cure period shall be ten (10) calendar days and default

interest at lesser of the prime rate then in effect as published by the Wall

Street Journal  or the maximum rate

allowed by law shall be due and payable on any such late payment calculated

from the first day after the date upon which the payment was due.  All such rights of termination shall be in

addition to, and shall not exclude, any other rights and remedies that the

party not in breach or default may  have.

 

6.             Termination

Compensation

 

In the event that

either party exercises its termination rights under Subsection 7.1(1) or 7.1(2)

or Section 4(b) of Schedule G, and in accordance with Subsection 7.1(3) of this

Agreement, the terminating party shall compensate the non–terminating

party for the actual costs and expenses incurred by the non-terminating party

that directly result from such termination, including without limitation the

costs and expenses incurred by the non-terminating party in order to put the

non-terminating party in a reasonably similar position that it would have been

in but for such termination.

 

Each party shall

use its reasonable efforts to mitigate any such costs and expenses, including

without limitation Equitable shall attempt to use the Equitable Resources for

its own internal purposes or for Alliance’s use where acceptable to

Alliance.  All such compensation shall

be subject to the non-terminating party’s delivery to the other party of

reasonable evidence, information and materials documenting any such costs or

expenses suffered by the non-terminating party.

 

 

E-4

 

SCHEDULE  F

 

SERVICE FEES

 

 

1.            Service Fee

 

1.1           Except as otherwise expressly

provided herein, as full and complete consideration for the provision of all

Services, the annual Service Fee payable by Alliance to Equitable under this

Agreement shall be $2,562,000 per annum for each year of the Term.  For 2001, the Service Fee shall be prorated

to the beginning of April 2001 for a total fee of $1,921,500 for 2001.  For the years 2002 and 2003, the Service Fee

shall remain at $2,562,000 provided that Alliance’s anticipated use of

Computing Resources (described in the Table set forth below) shall not increase

or decrease by more than 10% per year. In the event of a termination by

Alliance pursuant to the first sentence of Section 7.1 (2) of the Services

Agreement the parties will negotiate in good faith for a refund, if any, of

prepaid Service Fees.

 

1.2           The total Service Fee is based upon

Alliance’s monthly average usage projections for each processing element (CPU,

DASD and Tape) for each of the 3 years of the term of this Agreement.  These usage projections  will be 

based upon average actual usage by Alliance during the first three

months of the term and will be in the form of Table 1 below.  For 2002 and thereafter the processes

described in Schedule A, Section 1(D)(ii) shall be followed to establish

projected usage.

 

 

Alliance agrees to

reimburse Equitable for any additional indirect costs and expenses and third

party costs required by Alliance to meet additional requirements specific to

Alliance if Alliance specifically requests in writing.

 

 

 

1.3           In the event Alliance’s actual usage

for any of the processing elements in Table 1 for a given year during the term

of this Agreement exceeds the monthly projections for that element multiplied

by 12, Alliance shall be charged for such usage based on Equitable’s internal

Cost Allocation Methodology (“CAM”) for each such element.  In the first quarter of a calendar year, Equitable

establishes the internal CAM for these processing elements, based on its

projected expenses and planning assumptions; these rates remain in effect for

that whole year.

 

 

 

Table 1

 

ELEMENTS

 

TOTAL  CPU TIME

( minutes)

 

 

 

 

 

 

 

TAPES/ EXCPs)

 

DISK STORAGE

(Giga bytes)

 

 

 

If, during the budget

planning cycle referred to in Schedule A, sec. 1(D)(ii), but no later than

September 30, Alliance and Equitable project that Alliance’s usage of any of

these elements would increase or decrease by more than 10 percent (10%) for

that upcoming year, the parties shall renegotiate the Services Fees and the

above elements table.  The method of

calculating the revised Service Fees shall be based upon Equitable’s CAM

methodology and for 2002 any reduction shall not affect direct costs incurred

by Equitable related to Services to be rendered to Alliance.

 

2.            Travel Expenses

 

In addition to the

Service Fees, Alliance shall pay, or reimburse Equitable, for any reasonable

out-of-pocket expenses related to travel and travel-related expenses, incurred

by Equitable at the request or with the approval of Alliance in connection with

Equitable’s Performance of this Agreement. Such expenses include expenses in

connection with equipment installation and site surveys.

 

3.            Taxes

 

Alliance shall

pay, or reimburse Equitable, for all sales or 

services taxes which are levied or imposed in any  jurisdiction in connection with the services

contemplated hereby.

 

 

F-2

 

4.             Time of Payment

 

The  annual Service Fee for 2001 will be payable

on May 1, 2001 .  Thereafter, each

annual Service Fee will be invoiced on January 1 of each year payable within

thirty days thereafter.  Any other sum

due to Equitable thereunder for which a time for payment is not otherwise

specified will be due and payable within thirty (30) days after the due date of

an invoice therefor from Equitable.

 

5.             Method of Payment

 

All Service Fees,

and other charges that are due thereunder  shall be payable in US dollars and shall

be made by wire transfer to such account that Equitable may designate.

 

6.             Start–Up Expenses

 

In addition to the

Service Fees, Alliance shall reimburse Equitable for all non-recurring costs

and expenses incurred by Equitable in connection with the establishment and

commencement of Services pursuant to this Agreement, excluding any such costs

and expenses that are attributable to any personnel, management or employee

salaries or benefits.  Such start-up

costs and expenses are currently estimated to be $550,000 and shall include,

without limitation, the following: consulting services, vendor professional

services, one time software and hardware rental and telecommunication costs and

other related out-of-pocket expenses. 

Alliance shall reimburse Equitable for such amounts either on, or before

May 1, 2001 subject to Equitable’s reasonable accounting for same including the

delivery to Alliance of receipts in connection therewith.

 

7.             Telecommunication Expenses

 

The annual Service

Fee set forth in Section 1.1 above includes telecommunication expenses of $240,000.  Any amount paid by Equitable in excess of

$240,000 relating to Alliance’s use of telecommunications shall be reimbursed

to Equitable by Alliance at the same time as the payment of the annual Service

Fee.

 

8.             Non–Affiliated

Expenses

 

In the event that

any Alliance Company ceases to be an Affiliate of Equitable, Alliance shall

reimburse Equitable for any additional third party software costs incurred by

Equitable in order to continue to provide the Services.

 

 

F-3

 

SCHEDULE G

 

GENERAL TERMS AND

CONDITIONS

 

 

1.            Interpretation

 

In this Agreement

words importing a singular number only shall include the plural and vice versa.

The division of this Agreement into Articles and Sections and the insertion of

headings are for convenient reference only, and shall affect neither the

construction nor the interpretation of this Agreement. The terms, “hereof”,

“hereunder” and similar expressions refer to this Agreement and not to any particular

part, Article, Section or other portion hereof and include any agreement

supplemental hereto. Unless something in the subject matter or context is

inconsistent therewith references herein to parts, Articles and Sections are to

parts, Articles and Sections of this Agreement.  In this Agreement, all references to currency shall be references

to the lawful currency of the USA.  If for

any reason a court of competent jurisdiction finds any provision of this

Agreement, or portion thereof, to be unenforceable, that provision of the

Agreement shall be enforced to the maximum extent permissible so as to effect the

intent of the parties, and the remainder of this Agreement shall continue in

full force and effect.  No amendment or

modification of this Agreement shall be binding unless in writing and signed by

duly authorized representatives of both parties.

 

2.             Force

Majeure

 

Except for

Equitable’s obligations to provide the Services via, and through, the disaster

recovery and back–up services provided in Section 17 of this Schedule G,

neither party shall be liable for any failure or delay in its performance under

this Agreement due to causes, including, but not limited to, acts of God, acts

of civil or military authority, fires, epidemics, floods, earthquakes, riots,

wars, sabotage, , and governmental actions and labor shortages or disputes,

which are beyond its reasonable control; provided that the delayed party: (i)

gives the other party written notice of such cause promptly, and in any event

within fifteen (15) days of discovery thereof, and (ii) uses its reasonable

efforts to correct such failure or delay in its performance. Except for

Equitable’s obligations to provide the Services via, and through, the disaster

recovery and back–up services provided in Section 17 of this Schedule G,

the delayed party’s time for performance or cure under this Section 2 of

Schedule G shall be extended for a period equal to the duration of the cause or

sixty (60) days, whichever is less. In the event that any such event continues

for a period greater than sixty (60) days, either party shall have the right to

terminate this Agreement by providing written notice on or before 10 days after

such sixty (60) day period.  The

effective date of Alliance’s termination shall not be more than six months

after the date of such notice. The effective date of Equitable’s termination

shall be not less than six months after the date of such notice.

 

3.             Relationship

of the Parties

 

Nothing in this

Agreement shall either render, or be interpreted or construed to mean, Alliance

and Equitable are either partners, joint venturers, employer/employee or

principal/agent of the other. Neither party shall have any authority whatsoever

to obligate or commit the other party, contractually or otherwise. Neither

party shall do anything whatsoever to represent to any person that they have

any authority to so obligate or commit the other party.  Each of Alliance and Equitable agree that

each of them are independent contractors. 

Equitable shall only act within the scope of its actual and express authority

under this Agreement. 

 

 

G-2

 

Equitable shall

not represent to any person that it has any authority, or permission, or

consent to either represent or act on behalf of Alliance in any connection with

this Agreement except as is expressly authorized by Alliance.

 

4.             Assignment

 

(a) The rights and

liabilities of the parties hereto shall bind and inure to the benefit of their

respective successors and assigns as the case may be; provided that, since Alliance

has specifically contracted for Equitable’s unique and special services,

Equitable shall not have the right to assign or delegate any of its obligations

under this Agreement, either in whole or in part, to any person, except an

Affiliate of Equitable which agrees in writing to assume all of Equitable’s

obligations hereunder, without the prior written consent of Alliance. Any

attempted assignment in violation of the provisions of this Section 4 of

Schedule G shall be void. Except as expressly specified in this Agreement, the

parties do not intend, nor shall any clause be interpreted to create in any

third party, any obligations to, or right or benefit by, such third party under

this Agreement from either Equitable or Alliance.

 

(b) In the event

Equitable anticipates that it will transfer its data processing to an

Affiliate, which does not agree in writing to assume all of Equitable’s

obligations hereunder,Equitable shall have the right to terminate this

Agreement upon twelve (12) months written notice to Alliance.

 

5.             Notices

 

(a)           Any notice given pursuant to this

Agreement shall be in writing and shall be forwarded in the manner prescribed

herein to the respective party at the address designated as follows or at such

revised address as such party may, from time to time, designate by giving

notice in writing to the other parties in the prescribed manner:

 

 

	

  Alliance

  Capital

  	

   

  	

  Alliance Capital Management, L.P.

  
	

   

  	

   

  	

  1345 Avenue of the Americas

  
	

   

  	

   

  	

  New York, NY 

  10105

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Attention:

  	

  Chief Information Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Copy to:

  	

  General Counsel

  
	

   

  	

   

  	

   

  
	

  Equitable:

  	

   

  	

  The Equitable Life Assurance

  
	

   

  	

   

  	

  Society of the United

  
	

   

  	

   

  	

  1290 Avenue of the Americas

  
	

   

  	

   

  	

  New York, New York 

  10104

  
	

   

  	

   

  	

  U.S.A.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Attention:

  	

  Chief Information Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Copy to:

  	

  General Counsel

  

 

 

G-3

 

(b)           Notice shall be given in the manner

prescribed as follows: (i) by delivery, effective at the time of actual

delivery; or (ii) by registered or certified mail, effective on the third

business day following the deposit of such registered or certified mail with

each party’s, respective, postal service. In the event of any disruption, or

threatened disruption, of regular postal service notice shall not be given by

mail.

 

6.             No

Waiver

 

Failure by either

party to enforce any provision of this Agreement shall not be deemed a waiver

of future enforcement of that or any other provisions.

 

7.             Further

Assurances

 

Each of Alliance

and Equitable agree that they shall execute and deliver all further documents,

filings and agreements that contain reasonable terms and conditions, and do all

things that are reasonably necessary to realize and perfect the intention of

this Agreement and the obligations set out herein.

 

8.             No

Merger

 

The parties agree

and acknowledge that none of the warranties, representations and covenants

contained in this Agreement shall merge upon either the execution and delivery

of this Agreement by both parties, or upon the full payment (or any partial

payments) of the Service Fees, and that all such warranties, representations

and covenants shall continue in full force and effect both throughout the term

of this Agreement, or as otherwise stipulated in Section 21 of this Schedule G.

 

9.             Definitions

 

In this Agreement,

the following terms shall have the following meanings:

 

(1)           “Affiliate” shall mean a company

controlling, controlled by or under common control with another company;

 

(2)           “Business Day” shall mean each week

day, except Saturday and Sunday and where any week days occur on a statutory

holiday observed in the State of New York;

 

(3)           “Equitable EDP Facility” shall mean

the information and data processing offices, centre and facilities of Equitable

commercially identified as The Equitable Information Processing Centre located

at 400 Willow Tree Road, Leonia, New Jersey, U.S.A.;

 

(4)           “Hardware” shall mean the information

technology, equipment, hardware and electronic data processing support and

operating technology that Equitable shall use to provide all Services and that

is more particularly described and set out under the Equitable Hardware title

in Schedule C attached hereto, or as the parties hereto may otherwise agree

from time to time;

 

 

G-4

 

(5)           “Equitable Resources” shall mean all

of the Hardware, Software, network topology, communications equipment, systems,

processes and equipment that Equitable shall use to provide all Services and

that is more particularly described in Schedule C attached hereto, or as the

parties hereto may otherwise agree from time to time;

 

(6)           “Software” shall mean the computer

programs, which may be combined or embodied in any medium whatsoever,

consisting of a set of logical instructions and information which guide the

functioning of Equitable Hardware, and which shall include all information,

know–how, methodologies, systems, and processes concerning such computer

programs including without limitation object code, source code, all operational

/functional specifications, technical specifications, process flow diagrams,

design notes, documentation, and all updates, releases, enhancements,

modifications and customizations that Equitable shall use and rely upon to

provide Services, as such computer programs are more particularly identified in

Schedule C attached hereto, or as the parties hereto may otherwise agree from

time to time.

 

10.          Schedules

 

Each of the

Schedules delineated below are attached hereto and incorporated into the

provisions of this Agreement, and each Schedule shall be subject and

subordinate to the non­scheduled provisions of this Agreement in the event of

any conflict or contradiction between them.

 

	

  Schedule A

  	

   

  	

  — Services

  
	

  Schedule B

  	

   

  	

  — Alliance Obligations

  
	

  Schedule C

  	

   

  	

  — Equitable Resources

  
	

  Schedule D

  	

   

  	

  — Services Management

  
	

  Schedule E

  	

   

  	

  — Liability and Indemnification

  
	

  Schedule F

  	

   

  	

  — Service Fees

  
	

  Schedule G

  	

   

  	

  — General Terms and Conditions

  
	

  Schedule H

  	

   

  	

  — Proprietary and Confidentiality Obligations

  

 

11.          Intentionally

blank

 

12.          Intentionally

blank

 

 

G-5

 

13.          Service

Quality

 

(1)           In addition to any other rights and

remedies that may be available to Alliance, Equitable will  use reasonable procedures to

detect, identify and correct errors or mistakes in the Services and will  promptly

notify Alliance of any such errors or mistakes. In the event of any breach of

Equitable’s Service obligations which causes an error or mistake in any record,

report, data, information or output, Equitable shall at its own expense,

promptly use reasonable efforts to correct and reprocess such records, reports,

data, information or output. In the event of any failure or omission in

Equitable’s provision of Services, Equitable shall use reasonable efforts to

correct such failure or omission in Service. Equitable’s obligations under this

Subsection 13(l) shall be conditional upon Alliance providing Equitable with

prompt written notice of errors or mistakes in processing, and errors or

omissions in the Services, and providing Equitable with all necessary

supporting documentation.

 

(2)           If Equitable, for any reason

whatsoever, fails to correct any failure to provide the Services pursuant to

such Subsection 13(l) hereof, notwithstanding any other right of, or remedy

that may be available to Alliance in such event, Alliance shall have the right

to correct such failure, either directly or indirectly with the assistance of

another person it may retain, if such failure continues for an aggregate period

of sixty (60) days during the term of this Agreement.  In the event Alliance chooses to either directly or indirectly

correct such failure, Equitable shall fully  cooperate with Alliance or any of

Alliance’s representatives, to facilitate such correction, including without

limitation permitting reasonable access under Equitable supervision and in accordance

with Equitable’s access policy to Equitable EDP Facility, reasonable access to

and the assistance of Equitable’s relevant operational personnel, and all

relevant records, reports, information and documentation concerning such failed

Service obligation and shall reimburse Alliance for costs necessarily and

actually incurred in correcting such failure. In such event, credits due under

Schedule A shall not apply.  Once the

failure is corrected by Alliance, service shall be transitioned back to

Equitable and the service levels of Schedule A and any eligibility for credits

shall be reinstated.

 

(3)           Equitable shall: (i) use its

reasonable efforts to provide all of the Services in a manner, and to an

extent, that shall facilitate and promote the transparent and so-called

“seamless” provision of services by Alliance to its customers; and (ii) provide

appropriate personnel, services and technology to protect the security, welfare

and integrity of all Alliance’s data and information, including all Alliance Confidential

Information (as defined in Schedule H).

 

(4)           The parties shall, in good faith and diligently,

work together and cooperate with each other concerning the provision of all of

the Services to Alliance.

 

14.          Staffing

 

Equitable agrees

to provide all of the Services with appropriately experienced and technically

competent personnel.

 

15.          Services

Management

 

The Services

shall, in addition to any other obligations set out herein, be managed and

performed in accordance with the provisions of Schedule D attached hereto.

 

 

G-6

 

16.          Intentionally

blank

 

17.          EDP

Service Back-Up Facilities

 

Without limiting

any provision hereof, Equitable shall provide all of the Services to Alliance

in accordance with the availability and operational requirements and

specifications set out in Schedule A attached hereto.  In any event that Equitable does not provide the Services to

Alliance within one (1) hour or such period of time as otherwise agreed to by

the parties, Alliance shall have the right to invoke the backup and disaster

recovery services set out in Schedule A attached hereto shall be followed.  Any reliance on the services, equipment,

computer hardware, computer software, networks, telecommunication services,

data storage services, or electronic data processing services of any other

person by Equitable in the course of providing the Services to Alliance shall

not, in any manner or to any extent, relieve, diminish, or limit any of

Equitable’s performance obligations and duties under this Agreement.

 

18.          Warranties

 

(1)           Except for the rights of Equitable to

use the Alliance Application Systems for the purpose of this Agreement, which

rights are to be obtained by Alliance, Equitable hereby represents, warrants

and covenants to Alliance the following:

 

(i)            Equitable has full power and

authority to enter into this Agreement and to provide the Services as set out

herein, and to perform each and every covenant and agreement herein contained;

 

(ii)           the execution and delivery of this

Agreement, and the performance of the covenants and agreements herein

contained, are not, in any manner or to any extent, limited or restricted by,

and are not in conflict with, any commercial arrangements, obligations,

contract, agreement, or other instrument to which Equitable is bound, or by any

rights of any other person;

 

(iii)          except for Alliance Application

Systems, the Equitable Resources shall be complete and adequate to enable

Equitable to fully perform the Services in accordance with this Agreement;

 

(iv)          in accordance with Section 1 of

Schedule H, as between Equitable and Alliance, Alliance shall be the owner,

with good and marketable title, of all data, information, and files that are

directly and specifically related to the Services, and to all Alliance

Confidential Information;

 

(v)           Equitable Resources and any other

goods, materials, technology and equipment used by Equitable to provide the

Services shall be free and clear of all liens, charges, security interests,

encumbrances and any other rights of other persons including without limitation

any intellectual property, contractual, or confidentiality rights to the extent

that such may, or could, in any way, affect the ability of Equitable to provide

the Services to Alliance as herein provided;

 

 

G-7

 

(vi)          the performance of this Agreement by

Equitable, including without limitation the provision of all of the Services by

Equitable shall not, in any manner or to any extent whatsoever, infringe,

contravene, breach, interfere with, or harm, the rights of any other person,

including without limitation any intellectual property rights, copyrights,

patent rights, moral rights, confidentiality rights, equitable rights,

contractual rights, common law rights, or statutory rights;

 

(vii)         that all arrangements  and

agreements that Equitable may have with other persons who will provide either

products or services, or both, to Equitable in any connection with the

Services, including without limitation any computer hardware, software,

disaster recovery or back-up services, network services, or telecommunications

services, shall be maintained in good standing and not breached or terminated

if such termination  will have any adverse impact on

Equitable’s ability to provide any of the Services; and

 

(viii)        all things done, undertaken, created, or

contributed by any person on behalf of Equitable, in any connection with the

Services, shall be by persons strictly on a work for hire basis, and all right,

title, and interest in all intellectual property created by any such person in

any connection with the Services shall be wholly transferred and assigned to

Equitable.

 

(2)           Alliance hereby represents, warrants

and covenants to Equitable the following:

 

(i)            Alliance has full power and

authority to enter into this Agreement and to perform each and every covenant

and agreement herein contained;

 

(ii)           this Agreement has been duly

authorized, executed and delivered by Alliance and constitutes a valid, binding

and legally enforceable agreement of Alliance;

 

(iii)          the performance of Alliance

Obligations shall not, in any manner or to any extent whatsoever, infringe,

contravene, breach, interfere with or harm, the rights of any other person,

including without limitation any intellectual property rights, copyrights,

patent rights, moral rights, confidentiality rights, equitable rights,

contractual rights, common law rights, or statutory rights;

 

(iv)          that the documents, data and other

information of Alliance and Alliance Companies provided by Alliance to

Equitable, and relied on by Equitable, pursuant to this Agreement shall be, in

all material aspects, reasonably complete and accurate at the time same is

provided to Equitable;

 

(v)           the execution and delivery of this

Agreement and the performance of the covenants and agreements herein contained

are not limited or restricted by, and are not in conflict with, any contract,

agreement or other instrument to which Alliance is bound; and

 

 

G-8

 

(vi)          the execution and delivery of this

Agreement, and the performance of the covenants and agreements herein

contained, are not, in any manner or to any extent, limited or restricted by,

and are not in conflict with, any commercial arrangements, obligations,

contract, agreement, or other instrument to which Alliance is bound, or by any

rights of any other person.

 

(3)           THE

FOREGOING WARRANTIES ARE EXCLUSIVE AND ARE GIVEN AND ACCEPTED IN LIEU OF ANY

AND ALL OTHER WARRANTIES, DUTIES, OR OBLIGATIONS, EXPRESS OR IMPLIED, INCLUDING

WITHOUT LIMITATION ANY OTHER IMPLIED WARRANTIES OF MERCHANTABILITY AND ANY

IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. THIS IS A SERVICE

AGREEMENT AND IS NOT SUBJECT TO ARTICLE 2 OR 2A OF THE UNIFORM COMMERCIAL CODE

AS ENACTED BY THE STATE OF NEW YORK OR OTHERWISE.

 

19.          Liability

and Indemnification

 

The parties agree

to all of the liability and indemnification provisions set out in Schedule E

attached hereto, which the parties agree and acknowledge are fair, reasonable and

equitable in the circumstances of this transaction.

 

20.          Counterparts

 

This Agreement may

be executed in counterparts, all of which taken together shall constitute one

single Agreement between the parties hereto.

 

21.          Intentionally

blank

 

22.          Hiring

of Employees

 

During the term of

this Agreement and for a one (1) year period thereafter, Alliance and Equitable

agree not to, directly or indirectly, hire or make offers of employment to or

enter into consultant relationship with officers or employees (or former

officers, consultants or employees as the case may be) of the other who were

engaged in providing the Services, unless otherwise agreed to between the

parties. The provisions of this Section shall not apply to any current (or

former, as the case may be) employee, consultant or officer of either party

whose termination of employment was not a voluntary action on such employee’s

or officer’s part, nor shall it apply to a terminating party which terminates

pursuant to Section 5 of Schedule E.

 

 

G-9

 

SCHEDULE  H

 

PROPRIETARY AND CONFIDENTIALITY

OBLIGATIONS

 

 

1.            Proprietary

and Related Rights

 

(1)            The parties agree, acknowledge and

confirm that Alliance and each respective Alliance Company owns, and shall own,

all right, title and interest in, and to, all aspects of all data and

information related to each such company’s respective  operation, customers, insurance policies and business, including

without limitation all copies of reports and information delivered to Alliance

concerning Equitable’s provision of the Services (“Alliance EDP

Information”).  Equitable shall, in a

manner consistent with its obligations, use the same degree of care as it uses

to protect its own comparable information to protect all such Alliance EDP

Information and data from any harm, damage, theft, tampering, sabotage,

interference, or unauthorized use, during the term of this Agreement and during

such time as any such Alliance information remains in the possession of

Equitable.  Equitable shall not

represent to any person that all, or any part of, such data and information is

either the property, or is an asset, of Equitable whatsoever. Equitable shall

have a non–exclusive and non–transferable right to use Alliance EDP

Information only for the purpose of this Agreement and only to the extent that

such use is strictly necessary for Equitable to provide Alliance with the

Services.

 

(2)            All Equitable Resources (excluding

Alliance Application Systems), technology, processes, systems, and know–how

that Equitable uses to perform the Services shall, for the purposes of this

Agreement, be deemed to be the sole and exclusive property of Equitable.

 

(3)            All information concerning Alliance

and Alliance Companies, including without limitation all regulatory,

commercial, financial, sales, marketing, business, personnel, administrative,

technological, customer, insured, and any Alliance EDP Information, together

with any information concerning this Agreement, is hereby deemed to be the

proprietary and confidential information of Alliance and Alliance Companies

(“Alliance Confidential Information”) and shall be held in strict

confidentiality in accordance with this Schedule H.

 

(4)            All information concerning

Equitable, including without limitation all regulatory, personnel,

administrative, technological information, together with any information

concerning this Agreement, is hereby deemed to be the proprietary and

confidential information of Equitable (“Equitable Confidential Information”)

and shall be held in strict confidentiality in accordance with this Schedule H.

 

2.             Alliance

Confidential Information

 

All Alliance

Confidential Information shall be held in strict confidence by Equitable and

shall not be used by Equitable for its benefit, or for the benefit of any other

person, or for any purpose other than is strictly necessary for the purpose of

this Agreement.  Equitable shall have an

obligation to prevent the Alliance Confidential Information from being misappropriated,

used without the consent of Alliance, wrongfully disclosed, harmed, stolen,

manipulated, tampered with, copied, or

 

 

 

electronically

transmitted or otherwise communicated, except as otherwise expressly permitted

by this Agreement.  Equitable shall use

reasonable efforts so that all persons that have any access to Alliance

Confidential Information in any connection with Equitable’s performance of this

Agreement, whether officers, employees, agents, affiliates, independent

contractors or otherwise, are fully apprised of, and obligated to adhere to,

all of Equitable’s confidentiality obligations set out herein.

 

3.             Equitable

Confidential Information

 

All Equitable

Confidential Information shall be held in strict confidence by Alliance and

shall not be used by Alliance for its benefit, or for the benefit of any other

person, or for any purpose other than is strictly necessary for the purpose of

this Agreement.  Alliance shall have an

obligation to prevent the Equitable Confidential Information from being

misappropriated, used without the consent of Equitable, wrongfully disclosed,

harmed, stolen, manipulated, tampered with, copied, or electronically

transmitted or otherwise communicated, except as otherwise expressly permitted

by this Agreement.

 

4.             Other

 

The terms

“Alliance Confidential Information” and “Equitable Confidential Information” do

not include information: (i) which is, or becomes, generally available to the

public other than as a result of an unauthorized disclosure thereof by the

other party; (ii) which is rightfully obtained by the recipient party from a

third party which is not obligated to protect its confidentiality; or (iii)

which is established by a party  to be

known by this party prior to its having been furnished by the other party.

 

Nothing in this

Agreement shall prevent either party from making disclosure of any information

if a party is required to do so by order of any court of competent jurisdiction

or any competent regulatory authority, or under any applicable legal provision,

provided that a written notice of any requirement to make such disclosure is

given to the other party immediately upon the party becoming aware of such

requirements and prior to disclosing any information whatsoever.

 

The provisions of

this Schedule H shall remain in effect for a period of three years after

termination or expiration of this Agreement.

 

 

H-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]