|
Exhibit
10.1
Amended and
Restated
Master Services
Agreement
by and
between
Tata America International
Corporation
& Tata Consultancy
Services Limited
and
ACNielsen (US),
Inc.
Effective as of
October 1, 2007
Table of
Contents
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Page |
| Section 1. OBJECTIVES, OVERVIEW OF SERVICES AND
DEFINITIONS |
|
8 |
| 1.1 |
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Goals and
Objectives |
|
8 |
| 1.2 |
|
Interpretation |
|
9 |
| 1.3 |
|
Overview
of Services |
|
10 |
| 1.4 |
|
Inclusion
of Affiliates |
|
10 |
| 1.5 |
|
Definitions |
|
11 |
| 1.6 |
|
Interpretation |
|
23 |
|
|
| Section 2. TERM |
|
24 |
| 2.1 |
|
Term |
|
24 |
| 2.2 |
|
Renewal
Term; Expiration-Termination Assistance Period |
|
24 |
| 2.3 |
|
Request
to Review Terms |
|
24 |
|
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| Section 3. SERVICES |
|
24 |
| 3.1 |
|
Scope of
Services |
|
24 |
| 3.2 |
|
Off-Shore
Services |
|
25 |
| 3.3 |
|
Services
Performed by Nielsen or Third Parties |
|
25 |
| 3.4 |
|
Acquisition, Divestiture and Alliance Services |
|
26 |
| 3.5 |
|
Statements of Work |
|
27 |
| 3.6 |
|
Additional Work, Reprioritization and Adjustments to Schedules
or Service Level |
|
28 |
| 3.7 |
|
TCS
Briefing |
|
28 |
| 3.8 |
|
Nielsen
Obligations to Purchase Services in Future |
|
29 |
| 3.9 |
|
Pre-Approval Required |
|
29 |
| 3.10 |
|
Permitted
Users of the Services |
|
29 |
|
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| Section 4. TRANSITION |
|
29 |
| 4.1 |
|
Transition Plan |
|
29 |
| 4.2 |
|
Transition Services |
|
29 |
| 4.3 |
|
Failure
to Perform Transition-Related Obligations |
|
30 |
| 4.4 |
|
Additional Staffing |
|
31 |
| 4.5 |
|
Transition Acceptance Tests |
|
31 |
| 4.6 |
|
Transition Completion |
|
31 |
| 4.7 |
|
Transition Risk Management and Mutual Cooperation |
|
31 |
|
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| Section 5. CROSS SERVICES |
|
32 |
| 5.1 |
|
Licenses
and Permits |
|
32 |
| 5.2 |
|
Provision
of Technology; Services Evolution |
|
32 |
| 5.3 |
|
Knowledge
Sharing |
|
32 |
| 5.4 |
|
TCS
Office Space |
|
33 |
| 5.5 |
|
Quality
Assurance |
|
33 |
| 5.6 |
|
Safety
and Security Procedures |
|
33 |
i
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| 5.7 |
|
Reporting |
|
34 |
| 5.8 |
|
Financial, Forecasting and Budgeting Support |
|
36 |
|
|
| Section 6. GLOBAL DELIVERY CENTER |
|
36 |
| 6.1 |
|
General |
|
36 |
| 6.2 |
|
Change of
TCS Service Location |
|
38 |
| 6.3 |
|
Shared
Environment |
|
38 |
| 6.4 |
|
Network
Connections; Nielsen Standards |
|
38 |
|
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| Section 7. THIRD PARTY AGREEMENTS |
|
40 |
| 7.1 |
|
Assigned
Agreements |
|
40 |
| 7.2 |
|
Performance Under Assigned Agreements |
|
40 |
| 7.3 |
|
Third
Party Invoices for Assigned Agreements |
|
41 |
| 7.4 |
|
Retained
Agreements |
|
41 |
| 7.5 |
|
Retained
Agreement Invoices |
|
41 |
|
|
| Section 8. SERVICE LEVELS AND PERFORMANCE
REQUIREMENTS |
|
41 |
| 8.1 |
|
Service
Level Performance Methodology |
|
41 |
| 8.2 |
|
Tier One
Quality of Service Metrics and Critical Service Levels |
|
42 |
| 8.3 |
|
Failure
to Perform |
|
42 |
| 8.4 |
|
Self-Help |
|
43 |
| 8.5 |
|
Adjustment of Critical Service Levels and Tier One Quality of
Service Metrics |
|
44 |
| 8.6 |
|
Failure
to Meet Service Level |
|
44 |
| 8.7 |
|
Exceptions to Service Level and other Performance Failure of
TCS |
|
44 |
| 8.8 |
|
Measurement and Monitoring Tools |
|
45 |
| 8.9 |
|
Continuous Improvement and Best Practices |
|
45 |
| 8.10 |
|
Nielsen
Satisfaction Surveys |
|
45 |
|
|
| Section 9. RESTRICTIVE COVENANT |
|
46 |
| 9.1 |
|
Additional Restrictions |
|
46 |
| 9.2 |
|
Remedies
For Breach of Sections 9.1(a) or 9.1(b) |
|
47 |
| 9.3 |
|
Remedies
For Breach of Section 9.1(c) |
|
48 |
| 9.4 |
|
Advance
Clearance |
|
48 |
|
|
| Section 10. TCS PERSONNEL |
|
49 |
| 10.1 |
|
Levels
and Retention of Resources |
|
49 |
| 10.2 |
|
Replacement of Resources |
|
49 |
| 10.3 |
|
Training |
|
50 |
| 10.4 |
|
Minimum
Staffing Requirements |
|
50 |
| 10.5 |
|
Key
Resources and Domain Experts |
|
51 |
| 10.6 |
|
TCS
Managers |
|
51 |
| 10.7 |
|
Project
Managers |
|
52 |
| 10.8 |
|
Approval
of TCS Managers |
|
52 |
| 10.9 |
|
Replacement of TCS Managers and Key Resources |
|
52 |
| 10.10 |
|
Executive
Steering Committee |
|
53 |
| 10.11 |
|
Subcontracting |
|
53 |
ii
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| 10.12 |
|
Coordination Role |
|
53 |
| 10.13 |
|
Access to
TCS Specialized Resources |
|
54 |
| 10.14 |
|
TCS
Personnel Incentives Plan |
|
54 |
| 10.15 |
|
Personnel
Procedures |
|
54 |
| 10.16 |
|
Background Check, Testing and Documentation of TCS
Personnel |
|
54 |
|
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| Section 11. NIELSEN RESPONSIBILITIES |
|
55 |
| 11.1 |
|
General |
|
55 |
| 11.2 |
|
Use of
Nielsen Service Locations |
|
56 |
| 11.3 |
|
Nielsen
Personnel |
|
57 |
| 11.4 |
|
Policies,
Rules, Standards and Process Instructions |
|
57 |
| 11.5 |
|
Review,
Consents, Approvals |
|
58 |
|
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| Section 12. GOVERNANCE, MANAGEMENT AND CONTROL |
|
58 |
| 12.1 |
|
Governance Model |
|
58 |
| 12.2 |
|
Change
Control Procedures |
|
58 |
| 12.3 |
|
Procedures Manuals |
|
58 |
|
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| Section 13. SOFTWARE AND PROPRIETARY RIGHTS |
|
59 |
| 13.1 |
|
TCS
Software |
|
59 |
| 13.2 |
|
Nielsen
Software |
|
59 |
| 13.3 |
|
TCS
Background Technology |
|
59 |
| 13.4 |
|
TCS
Software (including TCS Productivity and TCS Project
Tools) |
|
60 |
| 13.5 |
|
Developed
Software |
|
61 |
| 13.6 |
|
Nielsen
License |
|
61 |
| 13.7 |
|
Changes
and Upgrades to Software |
|
62 |
| 13.8 |
|
Non
Software Materials |
|
62 |
| 13.9 |
|
Work
Product |
|
62 |
| 13.10 |
|
Patents |
|
63 |
| 13.11 |
|
Residual
Knowledge |
|
64 |
| 13.12 |
|
Attorney-in-Fact |
|
64 |
| 13.13 |
|
Waiver of
Moral Rights |
|
64 |
| 13.14 |
|
TCS Third
Party Software |
|
64 |
| 13.15 |
|
Nielsen
Third Party Software |
|
65 |
| 13.16 |
|
Section
365(n) |
|
65 |
|
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| Section 14. DATA OWNERSHIP, PROTECTION AND RETURN OF
DATA |
|
65 |
| 14.1 |
|
Ownership
of Nielsen Data |
|
65 |
| 14.2 |
|
Return of
Data |
|
66 |
| 14.3 |
|
Safeguarding of Data |
|
66 |
| 14.4 |
|
Reconstruction of Data |
|
66 |
|
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| Section 15. CONSENTS |
|
67 |
| 15.1 |
|
Nielsen
Consents |
|
67 |
| 15.2 |
|
TCS
Consents |
|
67 |
| 15.3 |
|
Contingent Consents |
|
67 |
iii
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| Section 16. DISASTER RECOVERY PLAN AND BUSINESS CONTINUITY
PLAN |
|
67 |
| 16.1 |
|
General |
|
67 |
| 16.2 |
|
Disaster
or Force Majeure Event |
|
68 |
| 16.3 |
|
Termination Due to Force Majeure Events |
|
69 |
| 16.4 |
|
Allocation of Resources |
|
69 |
| 16.5 |
|
No Charge
for Unperformed Services |
|
69 |
|
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| Section 17. MINIMUM COMMITMENT AMOUNT |
|
70 |
| 17.1 |
|
Minimum
Commitment Amount |
|
70 |
| 17.2 |
|
Exclusions from the Minimum Commitment Amount |
|
70 |
| 17.3 |
|
Reductions to the Minimum Commitment Amount |
|
71 |
| 17.4 |
|
Payment
Upon Termination and Expiration |
|
72 |
|
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| Section 18. Charges; INVOICING AND PAYMENT
TERMS |
|
72 |
| 18.1 |
|
Charges |
|
72 |
| 18.2 |
|
T&M |
|
73 |
| 18.3 |
|
Expenses
Reimbursement |
|
74 |
| 18.4 |
|
Invoicing
and Payment Terms |
|
75 |
| 18.5 |
|
Rights of
Set Off |
|
76 |
| 18.6 |
|
Refundable Items |
|
76 |
| 18.7 |
|
Unused
Credits |
|
76 |
| 18.8 |
|
Proration |
|
76 |
| 18.9 |
|
Disputed
Payment |
|
76 |
| 18.10 |
|
Productivity |
|
77 |
| 18.11 |
|
Fixed
Price Engagement |
|
77 |
| 18.12 |
|
Most
Favored Customer |
|
77 |
|
|
| Section 19. EXTENSION TO SUPPLIERS |
|
77 |
| 19.1 |
|
General |
|
77 |
| 19.2 |
|
Rate Card
Variations For Suppliers |
|
78 |
|
|
| Section 20. COMPLIANCE WITH LAWS |
|
78 |
| 20.1 |
|
Compliance with Laws |
|
78 |
| 20.2 |
|
Equal
Employment Opportunity/Affirmative Action |
|
78 |
| 20.3 |
|
Occupational Safety And Health Act |
|
79 |
| 20.4 |
|
Gramm-Leach-Bliley Act and Similar Laws |
|
79 |
| 20.5 |
|
Immigration Laws |
|
79 |
| 20.6 |
|
Hazardous
Products or Components |
|
79 |
| 20.7 |
|
Labor
Disputes |
|
79 |
| 20.8 |
|
Statutory
and Regulatory Changes |
|
80 |
|
|
| Section 21. TAXES |
|
80 |
| 21.1 |
|
Responsibilities for Taxes |
|
80 |
| 21.2 |
|
Cooperation |
|
81 |
|
|
| Section 22. AUDITS |
|
82 |
iv
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| 22.1 |
|
Processing |
|
82 |
| 22.2 |
|
Financial
Responsibility for Audit |
|
82 |
| 22.3 |
|
Financial
Audit |
|
83 |
| 22.4 |
|
Record
Retention |
|
83 |
| 22.5 |
|
SAS 70
Type II |
|
84 |
| 22.6 |
|
Audit
Software |
|
85 |
| 22.7 |
|
Facilities |
|
85 |
| 22.8 |
|
Audit
Assistance |
|
85 |
| 22.9 |
|
Confidentiality and other Provisions |
|
85 |
| 22.10 |
|
Audit
Reviews and Responses |
|
85 |
| 22.11 |
|
Regulatory and Client Audits |
|
86 |
|
|
| Section 23. CONFIDENTIALITY |
|
86 |
| 23.1 |
|
Confidential Information |
|
86 |
| 23.2 |
|
Obligations |
|
87 |
| 23.3 |
|
Exclusions |
|
88 |
| 23.4 |
|
Loss of
Confidential Information |
|
89 |
| 23.5 |
|
No
Implied Rights |
|
90 |
| 23.6 |
|
Injunctive Relief |
|
90 |
| 23.7 |
|
Survival |
|
90 |
|
|
| Section 24. REPRESENTATIONS AND WARRANTIES |
|
90 |
| 24.1 |
|
By
TCS |
|
90 |
| 24.2 |
|
Mutual
Representations and Warranties |
|
95 |
| 24.3 |
|
Disclaimer |
|
96 |
|
|
| Section 25. DISPUTE RESOLUTION |
|
96 |
| 25.1 |
|
Mutual
Discussion |
|
96 |
| 25.2 |
|
Non-binding Mediation |
|
96 |
| 25.3 |
|
Expedited
Dispute Resolution |
|
97 |
| 25.4 |
|
Adjudication of Disputes |
|
97 |
| 25.5 |
|
Continuity of Services |
|
98 |
| 25.6 |
|
Additional Dispute Resolution Terms |
|
98 |
|
|
| Section 26. TERMINATION |
|
98 |
| 26.1 |
|
Termination for Convenience |
|
98 |
| 26.2 |
|
Termination With TCS’ Right to Cure |
|
98 |
| 26.3 |
|
Termination Without any Right to Cure |
|
99 |
| 26.4 |
|
Termination of this Agreement Due to Legal
Prohibition |
|
100 |
| 26.5 |
|
Termination by TCS |
|
101 |
| 26.6 |
|
Nielsen’s Payment Obligation Upon Termination or
Expiration |
|
101 |
| 26.7 |
|
Effects
of Termination |
|
102 |
| 26.8 |
|
Termination of Statements of Work |
|
103 |
|
|
| Section 27. TERMINATION-EXPIRATION ASSISTANCE |
|
103 |
| 27.1 |
|
Termination-Expiration Assistance |
|
103 |
v
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|
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| Section 28. LIMITATION OF LIABILITY |
|
104 |
| 28.1 |
|
NO
CONSEQUENTIAL DAMAGES |
|
104 |
| 28.2 |
|
DIRECT
DAMAGES |
|
104 |
| 28.3 |
|
EXCLUSIONS |
|
104 |
|
|
| Section 29. INDEMNIFICATION |
|
105 |
| 29.1 |
|
Indemnity
by TCS |
|
105 |
| 29.2 |
|
Additional Obligations for Infringement Claims. |
|
106 |
| 29.3 |
|
Indemnity
by Nielsen |
|
107 |
| 29.4 |
|
Additional Obligations for Infringement Claims |
|
108 |
| 29.5 |
|
Indemnification Procedures |
|
108 |
| 29.6 |
|
Subrogation |
|
109 |
|
|
| Section 30. INSURANCE, FIDELITY BOND |
|
109 |
| 30.1 |
|
Insurance
Coverage |
|
109 |
| 30.2 |
|
Insurance
Documentation |
|
110 |
| 30.3 |
|
Insurance
Provisions |
|
110 |
| 30.4 |
|
Fidelity
Insurance |
|
110 |
| 30.5 |
|
Claims
Procedures |
|
111 |
|
|
| Section 31. MISCELLANEOUS PROVISIONS |
|
111 |
| 31.1 |
|
Assignment |
|
111 |
| 31.2 |
|
Notice |
|
111 |
| 31.3 |
|
Counterparts |
|
112 |
| 31.4 |
|
Relationship |
|
112 |
| 31.5 |
|
Severability |
|
112 |
| 31.6 |
|
Waiver;
Approvals |
|
113 |
| 31.7 |
|
Publicity |
|
113 |
| 31.8 |
|
Headings |
|
113 |
| 31.9 |
|
Survival |
|
113 |
| 31.10 |
|
Covenant
of Further Assurance |
|
113 |
| 31.11 |
|
Negotiated Terms |
|
114 |
| 31.12 |
|
Governing
Law and Jurisdiction |
|
114 |
| 31.13 |
|
Permits |
|
114 |
| 31.14 |
|
Non
Solicitation of Employees |
|
114 |
| 31.15 |
|
Changes
In and Relationship of Various Parties |
|
115 |
| 31.16 |
|
Entire
Agreement |
|
116 |
| 31.17 |
|
Existing
SOWs |
|
116 |
| 31.18 |
|
Amendment; No Electronic Signatures; Waiver |
|
116 |
vi
TABLE OF
SCHEDULES
|
|
|
|
|
| Schedule
A |
|
Services |
|
Exhibit A-1
|
|
Form of Augmentation SOW
|
|
Exhibit A-2
|
|
Form of Project SOW
|
|
Exhibit A-3
|
|
Form of Process SOW
|
|
Exhibit A-4
|
|
Form of Project Change
Request
|
|
Exhibit A-5
|
|
Form of Transition Plan
|
|
|
| Schedule B |
|
Service
Levels |
|
Exhibit B-1
|
|
Tier One Quality of Service
Metrics
|
|
Exhibit B-2
|
|
Critical Service Levels
|
|
|
| Schedule C |
|
Charges |
|
|
| Schedule D |
|
Nielsen
Satisfaction Surveys |
|
|
| Schedule E |
|
Human
Resources Provisions |
|
Exhibit E-1
|
|
Nielsen Preemption Right
Employees
|
|
|
| Schedule F |
|
Off-Shore Leverage Percentages (Initial
Geographic Service Locations)
TCS Target Total Head Count
Service Locations (TCS Global Delivery
Centers, Other Service Locations, Nielsen Service
Locations)
|
|
|
| Schedule G |
|
Nielsen
Policies & Standards |
|
Exhibit G-1
|
|
Travel Policies
|
|
Exhibit G-2
|
|
Network Connectivity and Security
Policies
|
|
Exhibit G-3
|
|
Data Security Policies
|
|
Exhibit G-4
|
|
Physical Security Policies
|
|
|
| Schedule H |
|
TCS Group
List of Approved
Subcontractors
|
|
|
| Schedule I |
|
Third Party
Contracts |
|
|
| Schedule J |
|
Governance
and Personnel |
|
|
| Schedule K |
|
TCS Standard
Software |
|
|
| Schedule L |
|
TCS Standard
Hardware |
|
|
| Schedule M |
|
List of Restricted Companies
Description of Restricted
Businesses
|
|
|
| Schedule N |
|
Nielsen BCP
and DR Requirements |
|
|
| Schedule O |
|
Termination
– Expiration Assistance |
vii
This AMENDED AND RESTATED
MASTER SERVICES AGREEMENT (“ Agreement ”)
effective as of October 1, 2007 (“ Agreement
Effective Date ”) is made and entered into by and
between:
TCS : Tata America
International Corporation, doing business as TCS America, a New
York corporation (“ TCS America ”) and Tata
Consultancy Services Limited, a company established under the laws
of the Republic of India (“ TCSL ”). TCS America
is a wholly owned subsidiary of TCSL. TCSL and TCS America are
collectively referred to hereinafter as “ TCS
”;
AND
Nielsen : ACNielsen
(US), Inc. (“ Nielsen ”), a Delaware
corporation.
TCS and Nielsen are sometimes
referred to as a “ Party ” and collectively as
“ Parties ”.
This Agreement amends and
restates the Master Services Agreement dated as of June 16,
2004, as amended from time to time prior to the Agreement Effective
Date, (the “ Original MSA ”) by and among the
Parties and their predecessors in interest.
PRELIMINARY
STATEMENTS
The Parties have renegotiated
certain of the terms, conditions, rights and obligations of the
Parties in connection with the Services, the overall pricing of the
Services and commitments to purchase a certain volume of Services
during the Term, and wish to amend and restate the Original MSA in
its entirety in order to amend, supplement and consolidate in this
Agreement all of the agreed terms, conditions rights and
obligations of the Parties, including to:
(i) provide for Nielsen to
receive a more favorable and competitive pricing structure for the
Services;
(ii) provide for TCS to
receive a minimum commitment from Nielsen on a ‘take or
pay’ basis; and
(iii) provide for the
continuation of SOWs in effect between the Parties executed
pursuant to the Original MSA.
NOW, THEREFORE , in
consideration of the mutual promises and covenants contained
herein, and of other good and valid consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties, intending
to be legally bound, hereby agree as follows:
| Section 1. |
OBJECTIVES, OVERVIEW OF SERVICES AND
DEFINITIONS |
The Parties acknowledge and
agree that the specific goals and objectives of the Parties in
entering into this Agreement are to:
(a) Successfully build and
operate a high-performing integrated global (outsourced/offshore)
IT and BPO delivery capability for Nielsen;
(b) Generate one-time and
on-going committed cost reductions for each in-scope
outsourced/offshored IT and business activity by utilizing the
appropriate low cost qualified resources and offshore
infrastructure;
(c) Improve the quality of
deliverables from IT and business operations;
(d) Embed a defined and
demonstrated process improvement capability and commitment to
address cycle time, quality and cost objectives and to increase
repeatability and predictability for Nielsen;
(e) Operate as a seamless,
value-added extension of the current IT and business operations
organization;
(f) Enable scalable IT and
business operations capacity;
(g) Provide for active,
ongoing management and evaluation of the relationship to ensure it
anticipates and supports the changing business
environment;
(h) Support Nielsen’s
status as a world class information services company;
(i) Leverage economies of
scale afforded by IT and business processing service
providers;
(j) Provide for a pool of
experienced, high-quality TCS Personnel that will be dedicated to
the Nielsen account throughout the Term of this
Agreement;
(k) Minimize disruptions to
the existing IT and business operations as well as internal and
external customers (through transition and beyond);
(l) Minimize negative impact
on Nielsen Personnel;
(m) Establish and maintain a
stable, highly cooperative and long term business relationship with
Nielsen Personnel at all levels;
(n) Help establish a proven
framework for cost effectively providing outsourcing and offshoring
services in other information technology and business operation
areas with Nielsen as the needs arise; and
(o) Support Nielsen’s
efforts to integrate and consolidate its operational
entities.
The provisions of
Section 1.1 are intended to be a general introduction to this
Agreement and are not intended to expand the scope of the
Parties’ obligations or alter the plain meaning of
9
this Agreement’s terms and
conditions, as provided in the other sections of this Agreement.
However, to the extent the terms and conditions of this Agreement
are unclear or ambiguous, such terms and conditions are to be
construed to be consistent and in agreement with the background and
objectives provided in this Section 1.
TCS shall, in accordance with
the provisions of this Agreement, perform the professional services
relating to information technology and business process operations
(including applications development and maintenance (“
AD&M ”) and business support services), in each
case as they may evolve, be supplemented, enhanced, modified or
replaced in accordance with the procedure established in this
Agreement), including providing the Deliverables as described in
this Agreement and/or applicable Statements of Work (collectively,
the “ Services ”). Schedule A describes the
general scope of Services contemplated in this Agreement.
Particular Services shall be described in Statements of Work
attached to this Agreement (each, a “ Statement of
Work ” or “ SOW ”). Each SOW shall be
substantially in the form of Exhibits A-1, A-2 or A-3, as
applicable, to Schedule A. Each SOW shall be effective,
incorporated into and subject to this Agreement when executed in
accordance with the procedures provided in Section 3.5(a)(i).
The provisions of this Agreement will be applicable and extendable
to IT and BPO operations areas within Nielsen (including
acquisitions), and will fall into one of the following categories
of Services as designated in Schedule A.
(a) Information Technology
Services . Nielsen desires that certain information technology
(“ IT ”) services presently performed and
managed by or for Nielsen or Nielsen Affiliates, and certain
applications Software development services and maintenance and
certain other additional information technology services, as each
is described in this Agreement, including the SOWs and Schedules,
be performed and managed by TCS. TCS shall have carefully reviewed
Nielsen’s requirements and shall have performed all due
diligence it deems necessary prior to execution of each SOW;
or
(b) Business Processing
Services . Nielsen desires that certain BPO services presently
performed and managed by or for Nielsen or Nielsen Affiliates, as
each is described in this Agreement, including the SOWs and
Schedules, be performed and managed by TCS. TCS shall have
carefully reviewed Nielsen’s requirements and shall have
performed all due diligence it deems necessary prior to execution
of each SOW.
| |
1.4 |
Inclusion of Affiliates |
(a) A reference to Nielsen
shall include Affiliates of Nielsen (and any assignees of Nielsen
and Nielsen Affiliates as designated by Nielsen) in accordance with
the following: (i) a reference includes Affiliates of Nielsen
where expressly so provided; (ii) references to Nielsen in the
following definitions include Affiliates of Nielsen (unless
expressly provided to the contrary): Nielsen Data, Nielsen
Information, Nielsen Software, and Third Party Service Contracts;
(iii) references to sale, assignment, grant of license or the
like by Nielsen means Nielsen will perform the act for itself or
cause Affiliates of Nielsen to perform the act themselves;
references to assets being in the name of Nielsen include
Affiliates of Nielsen; and (iv) references to the business,
operations, policies, procedures and the like of Nielsen include
Affiliates of Nielsen to the extent Affiliates are receiving the
Services. Subject to the foregoing, references to Nielsen shall
include Affiliates of Nielsen as Nielsen reasonably
designates.
10
(b) A reference to TCS shall
include Affiliates of TCS in accordance with the following:
(i) A reference includes Affiliates of TCS where expressly so
provided; (ii) references to TCS in the following definitions
include Affiliates of TCS (unless expressly provided to the
contrary): TCS Data, TCS Information, TCS Software, and Third Party
Service Contracts; (iii) references to sale, assignment, grant
of license or the like by TCS means TCS will perform the act for
itself or cause Affiliates of TCS to perform the act themselves;
references to assets being in the name of TCS include Affiliates of
TCS; and (iv) where Services are to be provided outside of the
United States and TCS operates in the relevant country through a
Majority Owned Affiliate, with respect to the provision of Service
in that country references to TCS shall include such Affiliate.
Subject to the foregoing, references to TCS shall include
Affiliates of TCS as TCS reasonably designates.
(c) In all cases where the
reference to Nielsen includes an Affiliate of Nielsen, Nielsen
shall cause the applicable Affiliate of Nielsen to perform the
applicable obligations of Nielsen under this Agreement, and Nielsen
shall itself perform such obligations on behalf of such Affiliate
of Nielsen if the applicable Affiliate of Nielsen fails to observe
and perform such obligations.
(d) In all cases where the
reference to TCS includes an Affiliate of TCS, TCS shall cause the
applicable Affiliate of TCS to perform the applicable obligations
of TCS under this Agreement, and TCS shall itself perform such
obligations on behalf of such Affiliate of TCS if the applicable
Affiliate of TCS fails to observe and perform such
obligations.
The capitalized terms used in
this Agreement shall have the meanings specified where they are
used or in this Section 1.5.
(a) “ Affiliate
” means with respect to any entity, any other entity
Controlling, Controlled by, or under common Control with, such
entity at the time in question.
(b) “ Agent
” means a person or entity, including a subcontractor,
authorized to act for a Party.
(c) “ Agreement
” means this Amended and Restated Master Services Agreement
and all exhibits, Schedules and appendices attached
hereto.
(d) “ Agreement
Effective Date ” has the meaning provided in the
recitals.
(e) “
Application ” means a cohesive collection of automated
procedures and data supporting a business objective. It consists of
one or more components, modules, subsystems and
Software.
(f) “ Applications
Development and Maintenance ” or “ AD&M
” means Services related to the design, creation,
development, coding, testing and implementation (development) or
the maintenance, correction, support and enhancement (maintenance)
of Applications.
11
(g) “ Approved
Subcontractor ” has the meaning provided in
Section 10.11.
(h) “ Assigned
Agreements ” means Third Party Contracts which are
assigned to TCS and which are either listed in Schedule I or in an
SOW.
(i) “ Assignment
Agreement ” means the instrument by which a Third Party
Contract is assigned from Nielsen to TCS.
(j) “ Attachment
” means any exhibit, appendix, and other detailed information
accompanying a Schedule to this Agreement, SOW or other contractual
document agreed to by the Parties.
(k) “ Bankruptcy
Code ” has the meaning provided in
Section 13.16.
(l) “ Baseline
Service Charges ” means the forecasted monthly fee for
providing the Resource Baselines for the Term, covering the
provision of the Services on each applicable SOW for the applicable
month as provided in Section 18.2.
(m) “ BPO
” means any business process operations Nielsen elects to
outsource to TCS under this Agreement (including reporting
services, technical client care (TCC), and support services
relating to human resources and finance and accounting).
(n) “ Business
Continuity Plan ” or “ BCP ” has the
meaning provided in Section 16.1 and Schedule N, and in
general terms means the in-scope outsourced function’s
specific plans and activities of Nielsen and/or TCS that are
intended to enable continued business operation in the event of any
unforeseen interruption. (For example, plans and activities to move
a department or business unit to a new location in the event of a
business disruption).
(o) “ Business
Day ” means every day Monday through Friday other than
those holidays (such holidays not to exceed fifteen (15) per
calendar year) when Nielsen’s corporate headquarters is not
scheduled to be open for business. References in this Agreement to
“days” that do not specifically refer to Business Days
are references to calendar days and, unless otherwise provided, a
period of more than seven (7) days that expires on a day other
than a Business Day shall be automatically extended to the next
following Business Day.
(p) “ Canadian
Privacy Legislation ” shall mean the Personal Information
Protection and Electronics Documents Act, S.C. 2001, c-5, the Act
Respecting the Protection of Personal Information in the Private
Sector, R.S.Q. c. P-39.1, the Personal Information Protection Act,
S.B.C. 2003, c-63, the Personal Information Protection Act, R.S.A.,
c. P-65, and any similar legislation applicable in
Canada.
(q) “ Change Control
Procedure ” means a process defined by written change
control procedures used by the Parties through which requested or
suggested changes to Services or this Agreement are controlled, as
provided in Section 12.2.
12
(r) “ Change
Orders ” means mutually agreed changes to SOWs documented
and signed by the Parties in accordance with the Change Control
Procedure.
(s) “ Charges
” means collectively all fees, costs and other charges
charged to Nielsen under this Agreement for Services.
(t) “ Claim
” means an allegation of breach, failure, non-performance or
any similar allegation, which, if proven, would lead to Losses for
the Party against which the Claim is asserted.
(u) “ Collective
Bargaining Agreement ” or “ CBA ” has
the meaning provided in Section 20.7.
(v) “ Commercially
Reasonable Efforts ” means taking such steps and
performing in such a manner as a well managed business would
undertake having regard to reasonableness and cost, where such
business was acting in a determined, prudent and reasonable manner
to achieve a particular desired result for its own
benefit.
(w) “ Confidential
Information ” has the meaning provided in
Section 23.1.
(x) “ Continuous
Improvement ” means the activities and actions that TCS
performs as provided in Sections 8.9.
(y) “ Contract
Year ” means: (i) the 15-month period that begins on
the Agreement Effective Date and ends on December 31, 2008;
and (ii) for each year after the initial Contract Year, the
calendar year. With respect to any SOW, a Contract Year means a
period commencing on the Services Commencement Date or an
anniversary thereof and ending on the date one (1) year
thereafter (or, if earlier, on the last day of the SOW Term). If
any Contract Year for this Agreement or for any SOW is less than
twelve (12) months, the rights and obligations under this
Agreement that are calculated on a Contract Year basis will be
proportionately adjusted for such shorter period.
(z) “ Control
” and its derivatives means possessing, directly or
indirectly, the power to direct or cause the direction of the
management, policies and operations of an entity, whether through
ownership of voting securities, by contract or
otherwise.
(aa) “ Controlled
Subsidiary ” means any entity of which TCSL possesses
Control, provided that so long as TCSL is a public company, such
control shall be determined solely by reference to TCSL’s
direct or indirect ownership of the equity in such entity,
disregarding the ownership of any other entity (such as Tata Sons
Ltd) which itself Controls TCSL.
(bb) “ Critical
Service Levels ” means those service levels which are
applicable on an SOW basis as described in Section 1(b) of
Schedule B.
(cc) “ Critical
Services ” means those Services that are mission critical
or necessary for Nielsen or an Affiliate to conduct their
business.
13
(dd) “ Data
” means numbers, characters, images, or other Nielsen
information recorded in a form that can be input into a CPU or
processor, stored and processed there, or transmitted on some
digital or analog channel.
(ee) “
Deliverable(s) ” means each deliverable (including
Software, documents and an item or work product resulting from
performance of an activity) identified in either this Agreement or
a Statement of Work, and any other deliverable agreed upon by the
Parties in writing, including all Software, Documentation, goods,
services and materials to be provided by TCS pursuant to this
Agreement or any Statement of Work.
(ff) “ Designated
Representatives ” has the meaning provided in
Section 25.1.
(gg) “ Developed
Software ” means any Software, modifications or
enhancements developed pursuant to this Agreement by or among TCS,
TCS Agents, and Nielsen.
(hh) “ Disabling
Code ” has the meaning provided in
Section 24.1(j).
(ii) “ Disaster
Recovery Plan ” or “ DRP ” has the
meaning provided in Section 16.1.
(jj) “ Dispute
” has the meaning provided in Section 25.1.
(kk) “ Dispute
Resolution Process ” means the methods for resolving
disagreements provided in Section 25.
(ll) “
Documentation ” means the user manuals and any other
completed (as opposed to works in progress) materials in any form
or medium related to the Services provided by TCS to Nielsen as
required by this Agreement or, provided by Nielsen to TCS (to the
extent such materials exist, Nielsen is aware of the existence,
Nielsen has reasonable access to the materials and Nielsen has the
legal right to access and provide such materials to
TCS).
(mm) “ Domain
Expert ” has the meaning provided in
Section 10.5(b).
(nn) “ Executive
Steering Committee ” has the meaning provided in
Section 10.10.
(oo) “ Extension
Period ” has the meaning provided in
Section 2.2(b).
(pp) “ Fidelity
Bond ” has the meaning provided in
Section 30.4.
(qq) “ Fixed
Price ” means Services that will be performed for a
single Charge which shall be provided in the relevant SOW, and
which shall be not subject to time and materials Charges or the
Baseline Service Charges, but which may be subject to additional
charges and credits based on Nielsen’s usage of non-personnel
based resource units or changed pursuant to a Change
Order.
14
(rr) “ Force Majeure
Event ” has the meaning provided in
Section 16.2.
(ss) “ Global
Delivery Center ” has the meaning provided in
Section 6.1.
(tt) “ Global
Relationship Manager ” means the individual designated as
the primary contact for the relevant Party under this Agreement as
provided in Sections 10.6(c) and 11.3(c).
(uu) “ Governance
Model ” has the meaning provided in Section 12.1 and
Schedule J.
(vv) “ Hardware
” means the computers and related equipment used in
connection with the provision of the Services, including central
processing units and other processors, servers, controllers,
modems, communications and telecommunications equipment (voice,
data and video), cables, storage devices, printers, Terminals,
other peripherals and input and output devices, and other tangible
mechanical and electronic equipment intended for the processing,
input, output, storage, manipulation, communication, transmission
and retrieval of information and data.
(ww) “ Initial
Term ” has the meaning provided in
Section 2.1.
(xx) “ Insured
Event ” has the meaning provided in
Section 30.5(b).
(yy) “ Intellectual
Property Rights ” means, on a worldwide basis, any and
all: (i) rights associated with works of authorship and
literary property, including copyrights, moral rights of an author
of a copyrightable work (including any right to be identified as
the author of the work or to object to derogatory treatment of the
work), and mask-work rights; (ii) trade marks, service marks,
logos, trade dress, trade names, whether or not registered, and the
goodwill associated therewith; (iii) rights relating to
know-how or trade secrets, including ideas, concepts, methods,
techniques, inventions (whether or not developed or reduced to
practice); (iv) patents, designs, algorithms and other
industrial property rights; (v) rights in domain names,
universal resource locator addresses, telephone numbers (including
toll free numbers), and similar identifiers; (vi) other
intellectual and industrial property rights of every kind and
nature, however designated, whether arising by operation of law,
contract, license or otherwise; and (vii) registrations,
initial applications (including intent to use applications),
renewals, extensions, continuations, divisions, or reissues thereof
now or hereafter in force (including any rights in any of the
foregoing).
(zz) “ ISO 17799
” means the set of standards for information security
published by the International Organization for
Standardization.
(aaa) “ ISO 9000
” means the set of standards for quality management systems
published by the International Organization for
Standardization.
(bbb) “ IT
” means Information Technology.
(ccc) “ JAMS
” has the meaning provided in Section 25.3.
15
(ddd) “ Key
Personnel ” means TCS Key Resources and
Managers.
(eee) “ Key
Resources ” means the TCS Resources identified pursuant
to Section 10.5.
(fff) “ Knowledge
Transfer ” means the formal, systematic and comprehensive
collection and documentation of the processes, activities,
know-how, rules of thumb and related information used by TCS for
the efficient, accurate and timely provision of the Services and
the conveyance of such information in verbal and tangible form to
Nielsen.
(ggg) “ Labor
Dispute ” has the meaning provided in
Section 20.7.
(hhh) “ Law
” means all national, common law, federal, state, provincial,
regional, territorial and local laws, statutes, ordinances,
regulations, rules, executive orders, supervisory requirements,
directives, circulars, opinions, interpretive letters and other
official releases of or by any government, or any authority,
department or agency thereof. References to any Law shall also mean
references to such Law in changed or supplemented form or to a
newly adopted law replacing such Law.
(iii) “ Losses
” means all losses, liabilities, damages and Claims, and all
related costs and expenses (including reasonable legal fees and
disbursements and costs and expenses of investigation and
litigation, and costs of settlement, judgment, interest and
penalties).
(jjj) “ Majority
Owned Affiliate ” means (i) in the case of Nielsen,
an Affiliate whose Control is measured at greater than 50%
disregarding Control of any entity owning equity in The Nielsen
Company B. V. and (ii) in the case of TCS any Controlled
Subsidiary.
(kkk) “ Material
Disruption ” has the meaning provided in
Section 8.4.
(lll) “
Milestone ” means a specific objective, delivery, task
completion, goal or other item identified in the applicable
Transition Plan or Project Plan, and which may have an associated
completion date.
(mmm) “ Minimum
Commitment Amount ” or “ MCA ” has the
meaning provided in Section 17.1.
(nnn) “ Nielsen
” has the meaning provided in the recitals.
(ooo) “ Nielsen
Clients ” means any or all of Nielsen’s or its
Affiliates’ past, present or future customers and their
Affiliates.
(ppp) “ Nielsen
Consents ” means all consents, licenses, permits,
authorizations or approvals necessary to allow TCS and TCS Agents
to perform the Services, including any necessary governmental,
third party or other security clearances, and/or to access and/or
to use any of the following that are used solely to provide the
Services Nielsen Data, Nielsen Information, Nielsen Non-Software
Material, Nielsen Software, tools or any other material provided or
permitted by Nielsen under this Agreement.
16
(qqq) “ Nielsen
Data ” means all data and information submitted to TCS by
Nielsen or obtained, developed or produced by TCS in connection
with the Services, including information relating to Nielsen
Clients, Nielsen employees, technology, operations, facilities,
consumer markets, products, capacities, systems, procedures,
security practices, research, development, business affairs and
finances, ideas, concepts, innovations, inventions, designs,
business methodologies, improvements, trade secrets, copyrightable
subject matter and other proprietary information.
(rrr) “ Nielsen
Information ” means all information, including Nielsen
Data, in any form, furnished or made available directly or
indirectly to TCS by Nielsen or otherwise obtained by TCS from
Nielsen.
(sss) “ Nielsen
Non-Software Materials ” has the meaning provided in
Section 13.8.
(ttt) “ Nielsen
Personnel ” means employees of Nielsen and its
Affiliates.
(uuu) “ Nielsen
Preemption Right Employee ” means those certain former
Nielsen employees who are Key Resources and are designated in
Exhibit E-1 to Schedule E.
(vvv) “ Nielsen
Regulatory Requirements ” means the laws, rules and
regulations to which Nielsen is required to submit on an
international, Federal, state and local level.
(www) “ Nielsen
Satisfaction Surveys ” means the surveys performed by TCS
as provided in Section 8.10.
(xxx) “ Nielsen
Software ” means the systems Software and applications
Software owned or licensed by Nielsen that are used to provide the
Services.
(yyy) “ Nielsen
Standards ” means those information management, technical
architecture, security and product rules and standards provided in
Schedule G.
(zzz) “ Nielsen
Third Party Software ” means Third Party Software
licensed by Nielsen.
(aaaa) “
Non-Software Materials ” has the meaning provided in
Section 13.8.
(bbbb) “ Notice
” has the meaning provided in Section 31.2.
(cccc) “ Notice of
Election ” has the meaning provided in
Section 29.5.
(dddd) “ OFAC
” has the meaning provided in
Section 10.16(b)(ii).
(eeee) “
Off-Shore ” has the meaning provided in
Section 3.2.
17
(ffff) “ Off-Shore
Leverage Percentages ” has the meaning provided in
Section 3.2.
(gggg) “ Original
MSA ” has the meaning provided in the
recitals.
(hhhh) “ Other
Service Location ” means a TCS site from which Services
are provided other than the Global Delivery Center(s) specified in
Section 6.
(iiii) “ Party
” and “ Parties ” have the meaning
provided in the recitals.
(jjjj) “
Pass-Through Expenses ” means any expense for which
TCS will have management and administrative responsibility,
including administrative costs for negotiation and communication
with other third parties, as well as actual costs incurred by TCS
in connection with receiving approval for payment, but which
Nielsen agrees to pay directly to a third party or parties or
reimburses TCS.
(kkkk) “ Permits
” has the meaning provided in Section 31.13.
(llll) “ Personally
Identifiable Information ” means any information that is
defined as “personal information” (or an equivalent
Term) under the GLB Act, HIPAA. Canadian Privacy Legislation, or
the EU Data Protection Directive.
(mmmm) “ Procedures
Manual ” means an operating document relating to this
Agreement produced in accordance with Section 12.3.
(nnnn) “ Process
Norms ” means the procedures, methods and business
processes designated in an SOW or if not specified in the relevant
SOW those employed by a well-managed commercial enterprise
providing services similar to the Services.
(oooo) “ Project
Manager ” means the individual with primary
responsibility for the execution, oversight and management of SOWs,
as provided in Sections 10.6 and 11.3(b).
(pppp) “ Project
” means any discrete component of work under an
SOW.
(qqqq) “ Rate
” means the hourly billing amount for an IT or BPO Resource
as provided on the Rate Card in Schedule C.
(rrrr) “ Rate
Card ” means the IT and BPO Rates identified for each
type of TCS resource for each year of this Agreement, as provided
in Schedule C.
(ssss) “ Renewal
Term ” has the meaning provided in
Section 2.2(a).
(tttt) “ Reports
” has the meaning provided in Section 5.7(a).
(uuuu) “ Required
Consent ” means such Nielsen Consents or TCS Consents as
may be required for the assignment to TCS or Nielsen, or the grant
to TCS or Nielsen of rights of access or use, of resources (i.e.,
Hardware or Software) otherwise provided for in this Agreement or a
Statement of Work.
18
(vvvv) “ Required
Registrations ” has the meaning provided in
Section 24.1(h)(vii).
(wwww) “ Residual
Knowledge ” has the meaning provided in
Section 13.11.
(xxxx) “
Resource ” means TCS Personnel assigned to the Nielsen
account on a full-time basis.
(yyyy) “ Restricted
Business ” means the lines of business engaged in by
Nielsen and its Affiliates as described in Section 3 of
Schedule M. If Nielsen and its Affiliates cease to be engaged in
any such line of business (unless at the time TCS is engaged in
such line of business in violation of the provisions of
Section 9.1(a)) the divested or discontinued business shall no
longer be deemed a Restricted Business. If Nielsen and its
Affiliates enter into a new line of business or expand a line of
business that was not previously sufficiently material enough to be
described in Nielsen’s parent company’s securities
filings (and TCS or a TCS Controlled Subsidiary is not then
currently engaged in such a line of business) if requested by
Nielsen, TCS shall not unreasonably refuse to consent to expanding
the definition of Restricted Business to cover such new or expanded
line of business. Any modification to Section 3 of Schedule M
shall require mutual written consent of the Parties approved by
their respective Chief Legal Officer or General Counsel.
(zzzz) “ Retained
Agreements ” means the third party agreements for which
Nielsen retains financial responsibility, as provided in Schedule
I.
(aaaaa) “ Retained
Agreement Invoices ” means any invoices submitted by
third parties in connection with the Retained
Agreements.
(bbbbb) “ Review
Committee” has the meaning provided in
Section 17.3(f)(ii).
(ccccc) “ Scope
Changes ” means any change to a previously executed
SOW.
(ddddd) “ SAS 70
Report ” has the meaning provided in
Section 22.5.
(eeeee) “ Selecting
Partners ” has the meaning provided in
Section 25.2(c).
(fffff) “ Service
Level ” means individually and collectively, TCS
performance standards for the Services agreed by the Parties in
accordance the provisions of Schedule B and its applicable
Attachments.
(ggggg) “ Service
Location ” means any site from which the Services are
delivered.
(hhhhh) “ Service
Taxes ” means all value-added (VAT), services,
consumption, sales, use, excise, and other similar taxes that are
assessed against either Party on the provision of the Services as a
whole, or on any particular Service received by Nielsen or its
Affiliates from TCS, excluding taxes levied on Nielsen’s net
income, as provided in Section 21.1(c).
19
(iiiii) “
Services ” has the meaning provided in Section 3,
as further defined in Schedule A or as otherwise agreed by the
Parties from time to time pursuant to a SOW hereunder, collectively
including TCS services, functions and responsibilities for both
Off-Shore services and on-site services as described in this
Agreement as they may be supplemented, enhanced, modified or
replaced during the Term in accordance with this
Agreement.
(jjjjj) “ Services
Commencement Date ” means the date provided in the
applicable SOW and associated SOW Transition Plan as the date on
which TCS will start providing Services under such SOW. Unless and
to the extent not otherwise expressly stated in an SOW, on the
Services Commencement Date:
(i) TCS assumes full
operational responsibility for the IT or BPO services that are the
subject of the applicable SOW; and
(ii) all Critical Service
Levels and other performance metrics and obligations of TCS
provided in this Agreement and such SOW become fully effective and
enforceable.
(kkkkk) “ Shared
Environment ” has the meaning provided in
Section 5.6(d).
(lllll) “
Software ” means computer programs which perform
specific functions (applications software) or programs used to run
computers or networks and develop and run applications software
(system software).
(mmmmm) “ Statement
of Work ” or “ SOW ” means the
documents that describe the scope and requirements of the
particular Project or set of Services that are to be provided by
TCS under this Agreement as provided in
Section 3.5.
(nnnnn) “
Systems ” means Software and Hardware,
collectively.
(ooooo) “ TCS
” has the meaning provided in the recitals.
(ppppp) “ TCS
America ” has the meaning provided in the
recitals.
(qqqqq) “ TCS
Background Technology ” means any formulae, algorithms,
processes, process improvements, methodology, procedures, ideas,
concepts, research, inventions (whether or not patentable or
reduced to practice), know-how, and all records thereof, including
documentation, design documents and analyses, studies, plans, flow
charts, reports and drawings, and all Intellectual Property Rights
subsisting in each of the foregoing developed or acquired by TCS or
its affiliates prior to the effective date of the Original MSA or
completely independent of its engagement with Nielsen under the
Original MSA or this Agreement and which TCS may use in providing
the Services.
(rrrrr) “ TCS
Consents ” means all consents, licenses, permits,
authorizations or approvals necessary to allow TCS and TCS Agents
to:
(i) use any:
(A) TCS Software, including
any Third Party Software which is TCS Software;
20
(B) any assets owned or
leased by TCS or TCS Agents; and
(C) any third party services
retained by TCS to provide the Services during the Term and during
any Termination/Expiration Assistance Period; and
(ii) assign to Nielsen the
Developed Software and the Work Product.
(sssss) “ TCSL
” has the meaning provided in the recitals.
(ttttt) “ TCS
Group ” has the meaning provided in
Section 10.11.
(uuuuu) “ TCS
Managers ” has the meaning provided in
Section 10.6.
(vvvvv) “ TCS
Non-Software Materials ” has the meaning provided in
Section 13.8.
(wwwww) “ TCS
Personnel ” means any individual employed or engaged by
TCS, TCS Group, or Approved Subcontractors.
(xxxxx) “ TCS
Productivity Tools ” means the TCS Software designated as
TCS Productivity Tools in Schedule K and used to create
efficiencies and reduce the work effort required to provide the
Services.
(yyyyy) “ TCS
Project Tools ” means the TCS Software designated as TCS
Project Tools in Schedule K and used to manage the workflow,
inspection, quality and related aspects of the Services.
(zzzzz) “ TCS
Software ” means all Applications Software (including
applications such as TCS Productivity Tools and TCS Project Tools)
and Systems Software and any related documentation and other
related materials owned or licensed by TCS that are used to provide
the Services. Schedule K provides an initial list of TCS
Software.
(aaaaaa) “ TCS Third
Party Software ” means Third Party Software licensed by
TCS.
(bbbbbb) “ Term
” has the meaning provided in Section 2
.
(cccccc) “
Termination - Expiration Assistance ” has the meaning
provided in Section 27.1.
(dddddd) “
Termination - Expiration Assistance Period ” has the
meaning provided in Section 27.1.
21
(eeeeee) “ Third
Party Service Contracts ” means those agreements pursuant
to which a third party was, immediately prior to the Agreement
Effective Date, furnishing or providing services to Nielsen similar
to the Services.
(ffffff) “ Third
Party Services ” means services similar to the Services
performed by Third Parties.
(gggggg) “ Third
Party Software ” means any Software used to provide the
Services that is provided under license to TCS or Nielsen by a
third party, and includes any related ongoing services (e.g.,
maintenance and support services, upgrades, subscription services)
provided by third parties.
(hhhhhh) “ Tier One
Quality of Service Metrics ” means those service levels
designated in Exhibit B-1 of Schedule B.
(iiiiii) “ Tier One
Restricted Company ” means any entity designated as such
in Section I of Schedule M and any Affiliate of such entity engaged
in the Restricted Business and bearing indicative portion of its
parent’s name described in Section 1 of Schedule M or
using such parent’s trademark.
(jjjjjj) “ Tier Two
Restricted Company ” means any entity designated as such
in Section 2 of Schedule M and any Affiliate of such entity
engaged in the Restricted Business and bearing indicative portion
of its parent’s name described in Section 2 of Schedule
M or using such parent’s trademark.
(kkkkkk) “ Time and
Materials ” or “ T&M ” means
Services that will be performed for Charges based on the time and
materials required to provide the Services. T&M Services may be
subject to the Baseline Service Charge or invoiced on the basis of
actual efforts as provided in Section 18.2(a).
(llllll) “ Total TCS
Target Headcount ” has the meaning provided in
Section 10.4(a).
(mmmmmm) “
Transition ” means the associated timeline and all the
required work activities to enable the changing or passing of ADM,
BPO or other service responsibilities and accountabilities between
the Parties, as further defined in Section 4.
(nnnnnn) “
Transition Acceptance Testing” has the meaning
provided in Section 4.5.
(oooooo) “
Transition Acceptance Testing Plan ” means Nielsen
reviewed and approved set(s) of instructions and tasks organized
into a project plan to perform the required Transition Acceptance
Testing.
(pppppp) “
Transition Completion Date ” has the meaning provided
in Section 4.6.
(qqqqqq) “
Transition Manager ” means an individual designated by
either Party to oversee a Transition.
22
(rrrrrr) “
Transition Milestones ” has the meaning provided in
the applicable Statement of Work.
(ssssss) “
Transition Plan ” has the meaning provided in
Section 4.1.
(tttttt) “
Transition Services ” has the meaning provided in
Section 4.2.
(uuuuuu) “
Transition Schedule ” has the meaning provided in
Section 4.1.
(vvvvvv) “ User
” means Nielsen, Nielsen Clients and/or Nielsen Agents who
Nielsen desires to use the Services provided by TCS under this
Agreement in the performance of their duties on behalf of Nielsen
or in connection with their relationship with Nielsen and who are
authorized and enabled (e.g., valid user ID) by Nielsen to access
and utilize the Services and have been identified by Nielsen to
TCS, and any other individual or enterprise who is an approved
person or customer to receive or use the Services provided by
TCS.
(wwwwww) “ Virus
” means:
(i) program code, programming
instruction or set of instructions intentionally constructed with
the ability to damage, interfere with or otherwise adversely affect
computer programs, data files or operations; or
(ii) other code typically
designated to be a virus.
(a) Terms other than those
defined within this Agreement shall be given their plain English
meaning, and those terms, acronyms and phrases known in the IT and
BPO industries shall be interpreted in accordance with their
generally known meanings. Unless the context otherwise requires,
words importing the singular include the plural and vice-versa, and
words importing gender include both genders. Unless the context
otherwise requires to “persons” includes individual
natural persons and juridical legal entities.
(b) Where there is similar,
but not identical, construction of phrases, sentences, or clauses
of this Agreement no implication is made that a “negative
pregnant” is intended and they shall each be construed
separately, in accordance with their plain meaning.
(c) The words “
include ”, “ includes ”, “
including ”, and “ e.g. ”
when following a general statement or term, are not to be construed
as limiting the general statement or term to any specific item or
matter provided or to similar items or matters, but rather as
permitting the general statement or term to refer also to all other
items or matters that could reasonably fall within its broadest
scope.
(d) The word “
may ” (unless followed by “ not ”)
shall be construed as meaning “shall have the right, but not
the obligation, to”.
(e) The word “
provided in ” means the particular things or items
listed in, described in, provided for or as provided in the
referenced document, Section or article.
23
Unless terminated earlier
pursuant to the provisions of this Agreement, the term of this
Agreement shall begin on the Agreement Effective Date and shall
expire on December 31, 2017 (the “ Initial Term
”, as may be extended pursuant to Section 2.2 (b), the
(“ Term ”)). Notwithstanding the termination or
expiration of the Term, any SOWs executed during the Term that are
incomplete upon such termination or expiration shall, at
Nielsen’s option, continue until performance under such SOWs
is completed or terminated in accordance with the provisions of
Section 26 of this Agreement. The Charges for continued
Services under any surviving SOWs on or after the expiration date
of the Initial Term or the Extension Period, if applicable, shall
be as mutually agreed by the Parties unless the Parties have agreed
on a Renewal Term in accordance with Section 2.2(a) prior to
the expiration of Initial Term or the Extension Period, if
applicable.
| |
2.2 |
Renewal Term; Expiration-Termination Assistance
Period |
(a) If Nielsen desires to
renew this Agreement, Nielsen shall provide written request of
Nielsen’s intention to renew, such notice to be provided
prior to the end of the eighth year of this Agreement. The Parties
shall negotiate in good faith the terms and conditions applicable
to such renewal period (“ Renewal Term ”). If no
agreement on a Renewal Term is reached between the Parties prior to
end of the ninth Contract Year of this Agreement, Nielsen may
request Termination – Expiration Assistance Services and TCS
shall be obligated to provide such Services in accordance with
Section 27 of this Agreement.
(b) Unless the Parties have
previously agreed upon a Renewal Term in accordance with
Section 2.2(a), Nielsen may elect to extend the Term of this
Agreement one (1) time for up to one (1) year (“
Extension Period ”) provided that Nielsen provides
ninety (90) days prior written notice to TCS. The Charges for
the Extension Period shall be as provided in Section 2 of
Schedule C to this Agreement.
| |
2.3 |
Request to Review Terms |
At any time during the ninety
(90) days following the fifth (5 th ) anniversary of the Agreement,
either Party may submit in writing to the other Party a request to
review and revise one or more specific terms and conditions of the
Agreement. Upon receipt of such request, the Parties may, without
being obligated to do so, enter into discussions regarding
appropriate modifications to the terms.
Commencing as of the Services
Commencement Date, TCS shall perform the Services for Nielsen and
Nielsen Affiliates identified in the applicable SOW in accordance
with the terms of this Agreement, as such Services may evolve
during the Term or be supplemented, enhanced, modified or replaced.
The Services to be provided by TCS hereunder include:
(a) the services described in
this Agreement, including Schedule A to this Agreement or a SOW as
described in Section 3.5 to this Agreement;
24
(b) any services, functions
or responsibilities not specifically described in this Agreement or
an SOW but which are:
(i) an inherent, necessary or
customary part of the Services, or
(ii) are required for proper
performance or provision of the Services in accordance with the
preceding Section 3.1(a) shall be deemed to be included within
the scope of the Services to be delivered for the Charges, as if
such services, functions or responsibilities were specifically
described in this Agreement;
(c) the services, functions
and responsibilities performed in the twelve (12) months prior
to the Agreement Effective Date by the employees and contractors of
Nielsen with respect to the Services included in the applicable
SOWs even if the service, function or responsibility is not
specifically described in this Agreement; and
(d) all services within the
scope of this Agreement which TCS is already providing to Nielsen
under SOWs already in effect as of the Agreement Effective
Date.
For the purposes of this
Agreement, “ Off-Shore ” shall mean any facility
designated, owned or leased by TCS in India and any other location
outside the continental United States that is proposed by either
Party and approved in writing by both Parties. The initial agreed
upon Service Locations are provided in Schedule F, which may be
amended from time to time during the Term by the Parties. The
Parties will work in good faith to achieve the percentage of
Off-Shore Services specified by quarter and year as provided in
Schedule F (“ Off-Shore Leverage Percentages ”).
The Off-Shore Leverage Percentages shall be calculated by dividing
(A) the total number of billed hours performed Off-Shore by
TCS in a calendar month by; (B) the combined on-shore and
Off-Shore total number of billed hours performed by TCS for during
such calendar month; and (C) multiplying the result by one
hundred (100). Except for those hours performed by Resources from
TCS Service Locations provided in Schedule F, all hours billed
shall be counted as on-shore for the purpose of determining the
Off-Shore Leverage Percentages. Notwithstanding anything to the
contrary contained herein, if the Off-Shore Leverage Percentages
are not achieved in any two (2) consecutive quarters, the
Parties will review opportunities for inclusion of additional
Services with high Off-Shore potential to facilitate the
achievement of the Off-Shore Leverage Percentages, however, failure
to achieve such Off-Shore Leverage Percentages will not be a breach
of this Agreement or result in increases in or additional Charges
of any kind.
| |
3.3 |
Services Performed by Nielsen or Third
Parties |
(a) Notwithstanding any
request made to TCS by Nielsen pursuant to Section 3.4(a), but
without in any way limiting Nielsen’s obligations and
commitments under this Agreement, Nielsen shall have the right to
perform itself or contract with a third party to perform any
services similar to the Services. If Nielsen contracts with a third
party to perform any services which would be Services if provided
hereunder, TCS shall reasonably cooperate in good faith with
Nielsen and any such third party, including:
(i) providing in writing,
applicable requirements, standards and policies for the Services
including all information required so that any enhancements or
developments of such third party may be operated by TCS;
25
(ii) subject to compliance
with TCS’ reasonable site and security rules, allowing
reasonable access to the facilities being used by TCS to provide
the Services as reasonably necessary for Nielsen or a third party
to visit in connection with performing its work (where necessary
and appropriate, with escort by TCS Personnel and subject to
execution of confidentiality agreement by the applicable third
party); and
(iii) allowing access to the
Hardware and Software (to the extent permitted under any underlying
agreements with unaffiliated third parties), and making available
such information regarding such Hardware and Software as reasonably
necessary for Nielsen or a third party to perform its work (where
necessary and appropriate, with escort by TCS Personnel and subject
to execution of confidentiality agreement by applicable third
party).
| |
3.4 |
Acquisition, Divestiture and Alliance
Services |
TCS shall provide the
following Services related to businesses acquired or divested by
Nielsen (regardless of the legal form of such
transactions):
(a) Acquisition, Alliance
and Other Transaction Support . With respect to potential
acquisitions, joint ventures, strategic alliances and other similar
transactions contemplated or to be entered into by Nielsen, upon
Nielsen’s request, TCS will provide support as requested by
Nielsen (including assessments of the current technology
environments to be acquired, used or combined, potential
integration approaches, and the potential net economic impact of
the acquisition in connection with the Services) as reasonably
necessary to assist Nielsen’s assessment of the portion of
the transaction to which the Services will relate. Such support
will be provided within the timeframe reasonably requested by
Nielsen or as required by the timing of the transaction. TCS shall
provide these services as part of the Services at no additional
charge or cost to Nielsen as long as the work can be accomplished
with existing TCS resources, subject to the work prioritization as
provided in Section 3.6.
(b) Migration of Systems
and Business Processes . As requested by Nielsen and as they
relate to the Services, TCS will migrate business processes, the
systems, applications and data of the counterparty entity to the
Nielsen services support environment.
(c) On-site Support .
As requested by Nielsen, TCS will provide personnel to staff
vacancies and to provide management for the business process
operations and information technology functions needed to support
an acquisition, joint venture, strategic alliance or other similar
transaction, including on-site support at the location of the
acquired entity.
(d) Divestitures .
From time to time, Nielsen may divest businesses, whether
standalone units or product lines and regardless of the form of
transaction, who at the
26
time of such divestiture are receiving
the Services. In such cases, TCS will provide Services to Nielsen,
the divested business unit or product line and/or the acquirer in
accordance with the following:
(i) For the first six
(6) months after any such divesture pursuant to this
Section 3.4(d), if requested by Nielsen, TCS shall provide the
services at the then current Rates and Nielsen shall retain
financial responsibility for such services and any revenues,
resources or other similar usage measures shall count toward
Nielsen’s fulfillment of the MCA.
(ii) After such six
(6) month period, if requested by Nielsen, TCS shall provide
the services at mutually agreed upon rates; provided that such
rates may not exceed one hundred and ten percent (110%) of the
then current Rates. Any TCS revenues, resources or other similar
usage measures in connection with services provided by TCS pursuant
to this Section 3.4 shall be counted toward Nielsen’s
fulfillment of the MCA; provided that Nielsen shall retain
secondary liability for financial responsibility for such services.
If Nielsen does not want to remain secondarily liability for
financial responsibility for services provided to such divested
entities then, subject to sixty (60) days prior written
notice, Nielsen shall be relieved of any future obligation with
regards to the provision of services to such divested entity. In
such cases where Nielsen has notified TCS of Nielsen’s
unwillingness to remain secondarily liable for such charges then
TCS may negotiate a separate arrangement directly with such
divested entity without regard to the terms and conditions of this
Agreement. If TCS continues to provide services to such divested
entity, whether pursuant to this Agreement or under a separate
agreement as aforesaid, the fees collected for such charges by TCS
from the divested entity during the Term shall be counted toward
Nielsen’s fulfillment of the MCA.
(e) Parties To SOWs .
SOWs may be executed by Nielsen Affiliates and (for Services to be
received outside of the United States) by TCS’ Controlled
Subsidiaries. Provided that execution of the SOW has been approved
by the Nielsen Project Manager as indicated on such SOW, Nielsen
shall remain secondarily liable for payment of the Charges under
such SOW if the party thereto fails to pay the amount in a timely
manner. TCS shall be secondarily liable for performance of each SOW
to which any of its Affiliates is a party. TCS shall not be
obligated to execute such SOW with Nielsen Affiliates or provide
Services to any such Nielsen Affiliates outside the United States
if TCS requests approval of the SOW by the Nielsen Project Manager
and Nielsen Project Manager declines such approval.
(a) The Services that Nielsen
will obtain under this Agreement will be provided pursuant to
separate SOWs issued under this Agreement. Each SOW, as described
further in Schedule A, will:
(i) be subject to the terms
of, and become part of, this Agreement;
(ii) describe the Services
covered by the SOW;
(iii) detail the maximum
number of TCS Personnel Nielsen will be billed for under the
SOW;
27
(iv) to the extent not
already addressed in this Agreement, contain provisions governing
the terms for performance of the relevant Services including
payment provisions, applicable Service Levels and performance
requirements, and other provisions that are specific to such SOW;
and
(v) include, if applicable, a
SOW Transition Plan in the form provided in Exhibit A-5 to Schedule
A.
(b) Agreement
Modification . SOWs shall not be used to amend the terms and
conditions of this Agreement. Any SOW that modifies, or purports to
modify, the terms and conditions of this Agreement or
Nielsen’s rights or responsibilities thereunder shall be
subject to the review and approval of Nielsen’s legal
department and Nielsen’s Global Business Services division as
well as TCS’ legal and finance department.
(c) New SOWs; Amendments
to SOWs . The process to be followed with respect to new SOWs
and amendments to existing SOWs requested by Nielsen is described
in Schedule A. Either party may propose a SOW and amendments to
existing SOWs, but Nielsen shall have the sole right to accept or
reject any such proposal made by TCS. Failure of the Parties to
reach agreement on a SOW or an amendment to a SOW shall be subject
to Section 17.2 and 26.3(i) of this Agreement.
| |
3.6 |
Additional Work, Reprioritization and Adjustments to
Schedules or Service Level |
The Nielsen Project Manager
or his or her designee may identify new or additional work
activities to be performed by TCS Personnel or reprioritize or
reset the schedule for existing work activities or Services to be
performed by TCS Personnel. Unless otherwise agreed, Nielsen shall
incur no additional charges for the performance of such work
activities performed by TCS Personnel to the extent such work
activities can be performed with the same level of Resource support
as is provided in the SOW. TCS shall use Commercially Reasonable
Efforts to perform such work activities without impacting the
established schedule for other tasks or the performance of the
Services in accordance with the Critical Service Levels and Tier
One Quality of Service Metrics. If it is not possible to avoid such
an impact, TCS shall notify Nielsen of the anticipated impact and
obtain Nielsen’s consent prior to proceeding with such work
activities. Nielsen, in its sole discretion, may forego or delay
such work activities or temporarily adjust the work to be performed
by TCS, the schedules associated therewith or the Tier One Quality
of Service Metrics or Critical Service Levels to permit the
performance by TCS of such reprioritized work activities. TCS shall
not make any service performance adjustments that will affect Tier
One Quality of Service Metrics or Critical Service Levels without
obtaining Nielsen’s prior written approval. TCS shall not
make changes to any SOW that may affect the projected cost to
Nielsen or the schedule for completion of the activities and
Deliverables under such SOW without obtaining Nielsen’s prior
written approval.
At no additional charge to
Nielsen, TCS shall meet with Nielsen at least semi-annually to
brief Nielsen regarding technological developments and advances as
well as new or enhanced services, Software, tools, products,
processes or methodologies of possible interest or applicability to
Nielsen. Such briefing shall include TCS’ assessment of the
business impact, performance improvements and cost savings
associated with each if adopted by Nielsen.
28
| |
3.8 |
Nielsen Obligations to Purchase Services in
Future |
Section 17.1 provides
the obligations of Nielsen to purchase certain minimum volume of
Services during the Term and the consequences of Nielsen’s
failure to meet its commitment to so purchase. Except as provided
in Section 17.1, Nielsen shall be under no future obligation
to acquire additional or future services from TCS.
| |
3.9 |
Pre-Approval Required |
Any new Hardware or Software
acquired by TCS which are paid for by Nielsen or for the cost of
which Nielsen may be required to reimburse TCS shall be subject to
Nielsen’s prior approval.
| |
3.10 |
Permitted Users of the Services |
The Services may be used by
Nielsen and, as permitted by Nielsen, its Affiliates and those
third parties (such as customers, suppliers (subject to
Section 19, as applicable), and joint venturers) solely in
connection with their commercial relationship with Nielsen or any
Affiliate which is broader than mere resale of the Services
provided hereunder. Services provided to such entities shall be
deemed to be Services provided to Nielsen. Nielsen shall be
responsible for any breach of this Agreement caused by a party
permitted by Nielsen to use the Services hereunder.
For each SOW where TCS is
taking over services or functions previously performed by Nielsen
(a “ Transition ”), the Parties shall develop
and agree upon a detailed transition plan (“ Transition
Plan ”) which shall be an Attachment to such SOW. The
Transition Plan shall include a schedule for the transition of the
Services (the “ Transition Schedule ”). TCS
shall perform the Services described in such Transition Plan (the
“ Transition Services ”) without causing a
Material Disruption to Nielsen’s business or operations.
Except as otherwise provided in this Agreement or SOW, the
applicable Transition Plan or as agreed to in advance by the
Nielsen Project Manager, TCS shall not assume or plan on any
significant level of Nielsen’s resources being dedicated to
the Transition Services. Unless otherwise agreed by the Parties,
TCS shall not be required to commence Transition Services prior to
six (6) weeks after the execution of the applicable
SOW.
TCS shall:
(a) perform all functions and
services necessary to accomplish the Transition of the business
process operations and related information technology operations as
indicated within the specific Transition Plan for each SOW by the
applicable Milestone dates provided in each applicable SOW
transition plan; and
29
(b) for each SOW, designate
an individual who shall be responsible for managing and
implementing the Transition Services with respect to that
operational area. With Nielsen’s approval, TCS may use the
same individual to manage Transition Services under more than one
transitioning work area. Until the completion of the applicable SOW
Transition Plan, each such responsible individual shall review the
status of the Transition Services for which they are responsible
with the Nielsen Transition Manager on a weekly basis or as
reasonably requested by the Nielsen Transition Manager.
| |
4.3 |
Failure to Perform Transition-Related
Obligations |
(a) The Parties intend that
IT Services Transitions will take a maximum of three
(3) months and BPO Services Transitions will take a maximum of
six (6) months. Nielsen’s overall cost savings and the
six (6) week free transition period provided for in
Section 10.2(c) are based on these timelines. Any Transition
Plan which is estimated to take longer than six (6) months for
BPO Services or three (3) months for IT Services must receive
prior written approval from both the TCS and Nielsen Global
Relationship Managers.
(b) TCS’ Failure
. Unless otherwise specified in the applicable SOW, if Transition
is not complete on or before the applicable date provided in the
Transition Plan due to causes other than as provided in
Section 8.7, then TCS shall have two (2) additional weeks
to complete the Transition. If, after such two (2) week
period, the Transition is not complete due to TCS’ failure,
Nielsen shall be entitled to recover its internal cover costs and
any incremental expenses of incumbent providers who TCS was to have
replaced.
(c) Nielsen’s
Termination Right . If TCS (i) is found to be responsible
for the failure to complete a Transition as detailed in
Section 4.3(b) or (ii) fails to meet material Transition
Milestones due to reasons other than as provided in
Section 8.7, then Nielsen may, at its option, terminate the
Services for the specific SOW as provided in
Section 26.7.
(d) Nielsen’s
Failure . For delay beyond two (2) weeks in achievement of
Transition caused by Nielsen or any Transition Schedule extension
requested by Nielsen, a financial analysis of such delay will be
performed and agreed to by the Parties regarding TCS’
additional costs incurred as a result of such delay. In the event
of such delay Nielsen shall pay TCS any additional or incremental
costs and expenses actually incurred by TCS during the duration of
such delay (beyond such two (2) weeks). TCS shall document
such expenses in detail and before they are incurred they shall be
approved in writing by the Nielsen Project Manager.
(e) If (i) a Transition
is delayed for more than two (2) weeks beyond the three
(3) month period for IT Services or the (2) weeks beyond
the six (6) month period for BPO Services (or any longer
Transition Period as agreed to in accordance with
Section 4.3(a)); and (ii) it is found that the Parties
share responsibility for such delay, such delay was caused partly
by the failure of Nielsen and partly by the failure of TCS, then,
any incremental costs of Transition incurred by each of Nielsen and
TCS as a result of such delay shall be shared equally by the
Parties.
30
Before completion of
Transition Services, at Nielsen’s request, TCS will support
Nielsen in filling staffing vacancies if there is attrition of key
Nielsen Personnel before transition is completed. In such cases,
the Parties will discuss in good faith the impact on the Transition
Schedule to determine whether existing resources will be used or
whether additional personnel are to be acquired. The services of
additional personnel will be charged at the applicable Rate
provided in Schedule C.
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4.5 |
Transition Acceptance Tests |
As part of the Transition
Services, the Parties shall perform Transition acceptance testing
based on objective acceptance criteria and procedures to be
provided in the Transition Plan (the “ Transition
Acceptance Testing Plan ”). TCS shall provide all
cooperation and assistance reasonably required or requested by
Nielsen in connection with Nielsen’s evaluation or testing of
the Deliverables provided in the Transition Acceptance Testing
Plan. Knowledge Transfer entry and exit evaluation criteria shall
be approved by Nielsen before transition activities begin and
before actual work may be moved Off-Shore. After expiration of the
agreed review or acceptance period, if Nielsen has not yet rejected
the relevant Deliverables, Nielsen will be considered to have
approved if Nielsen does not provide TCS with written notification
of its objections with reasons after three (3) Business Days
notice that a decision needs to be made.
| |
4.6 |
Transition Completion |
When TCS demonstrates that
all Transition Acceptance Testing Criteria have been met, Nielsen
shall notify TCS in writing that Transition Acceptance Testing has
been successfully completed (the “ Transition Completion
Date ”). After expiration of the agreed review or
acceptance period Nielsen will be considered to have signed off if
Nielsen does not provide any written notification of its objections
with reasons after three (3) Business Days notice from TCS
that a decision needs to be made.
| |
4.7 |
Transition Risk Management and Mutual
Cooperation |
Prior to undertaking any
transition activity:
(a) the Transition Plan shall
be reviewed and approved in writing by both the Nielsen Transition
Manager and the TCS Transition Manager;
(b) The Parties’
Transition Managers shall discuss with each other all known
Nielsen-specific and TCS-specific material risks and shall not
proceed with such activity until Nielsen is reasonably satisfied
with the mitigation plans with regard to such risks (provided,
however, that, neither TCS’ disclosure of any such risks to
Nielsen, nor Nielsen’s acquiescence in TCS’ plans,
shall operate or be construed as limiting either Party’s
responsibilities under this Agreement); and
31
(c) TCS shall identify and
resolve, with Nielsen’s reasonable assistance, any problems
that may impede or delay the timely completion of each task in the
detailed Transition Plan that are TCS’ responsibility and
shall use all Commercially Reasonable Efforts to assist Nielsen
with the resolution of any problems that may impede or delay the
timely completion of each task in the Transition Plan that are
Nielsen’s responsibility.
| Section 5. |
CROSS SERVICES |
As part of the Services, TCS
is responsible for obtaining, and has financial responsibility for,
all necessary licenses, consents, approvals, permits and
authorizations required by legislative enactments and regulations
applicable to it that are legally required to be obtained in
connection with the performance and delivery of the
Services.
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5.2 |
Provision of Technology; Services Evolution |
TCS shall work with Nielsen
to improve the quality, efficiency and effectiveness of the
Services to keep pace with technological advances and as part of
the Services, support Nielsen’s evolving business needs by
(i) identifying and applying (to the extent within TCS’
control) ‘best practices’, and TCS’ most current,
techniques, methods and tools in performing and delivering the
Services; and (ii) identify and maintain the currency of the
tools, infrastructure and other resources used by TCS to render the
Services. The cost associated with upgrade, maintenance or
replacement of Software, tools, equipment or other infrastructure
items shall be borne by the Party that is financially responsible
to provide such Software, tools, equipment or other infrastructure
items. In fulfilling these obligations, TCS shall, at a
minimum:
(a) determine the least
cost/highest benefit methods (with any trade offs being brought to
Nielsen for its decision) to implement technology
changes;
(b) maintain a level of
technology that allows Nielsen to take advantage of technological
advances in order to remain competitive in the markets which
Nielsen serves;
(c) advise Nielsen on the
latest information processing trends and directions; and
(d) meet with Nielsen’s
Project Manager, at Nielsen’s request, to inform Nielsen of
any new information processing technology TCS is developing or
information processing trends and directions of which TCS is
otherwise aware that could reasonably be expected to have an impact
on Nielsen’s business.
As part of the Services, up
to twice every twelve (12) months during the Term, or on
request after at least thirty (30) days notice from Nielsen,
TCS shall meet with representatives of Nielsen in order
to:
(a) explain to Nielsen how
the business processing of transactions is occurring, how the
Systems work, and should be operated;
32
(b) explain to Nielsen how
the Services are provided; and
(c) provide to Nielsen such
training and documentation as may be necessary to enable Nielsen to
understand and operate the Systems and understand and provide the
Services after the expiration or termination of this
Agreement.
TCS shall provide to Nielsen
without charge on an as needed basis, furnished office space at any
TCS Service Location, including reasonable office supplies and
access to photocopiers, fax machines, telephones, desktop computers
and Internet access for the use of the Nielsen Project Manager or
his designees when visiting such location. The Nielsen Project
Manager or his designees shall comply with all reasonable and
equally applied policies and procedures governing access to and use
of such locations of which they have been notified, and shall leave
such space in the same condition it was in immediately before they
used the space, ordinary wear and tear excepted.
(a) TCS shall develop and
implement quality assurance processes and procedures to ensure that
the Services are performed in an accurate and timely
manner.
(b) TCS shall submit such
processes and procedures to Nielsen for its review, comment and
approval within sixty (60) days after each Services
Commencement Date. Prior to the approval of such processes and
procedures by Nielsen, TCS shall adhere to Nielsen’s
then-current policies, procedures and/or standard business
practices in effect at the time of Transition.
(c) The quality assurance
processes and procedures shall conform to the best practices of the
IT and BPO industries.
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5.6 |
Safety and Security Procedures |
(a) TCS will maintain
comprehensive physical security procedures to control access to any
TCS facility where TCS performs the Services, including the Global
Delivery Center and any Other Service Location, which shall
include, at a minimum: (i) securing building perimeters and
controlling and logging access to the facility;
(ii) controlling and logging access to data floors and any
areas from which the Services are performed; and (iii) 24x7
environmental (temperature and humidity) monitoring of all data
centers used to provide the Services, including detection of water,
smoke and fire. Detailed security procedures and requirements are
provided in Schedule G.
(b) If access to
Nielsen’s computer systems, other equipment or personal
property is required in order for TCS to fulfill its obligations to
Nielsen, then Nielsen shall determine the nature and extent of such
access. TCS shall implement data security practices necessary and
at all times maintain security consistent with best practices,
defined to mean those security practices which are not less than
highest of any one practice that is within either:
(i) the Nielsen security
standards provided in Schedule G (“ Nielsen Policies and
Standards ”) as reasonably upgraded and
enhanced;
33
(ii) the security standards
employed by TCS with respect to the protection of its similar
property (for clarity, security for trade secrets at least
equivalent to the security TCS employs to protect its own trade
secrets) as they are upgraded and enhanced;
(iii) security standards
equivalent to the highest of those provided by TCS to its other
customers at no additional charge to such customers as upgraded and
enhanced; and
(iv) generally accepted as
industry-standard security practices (including compliance with
BS7799 and ISO 17799 on the schedule agreed to by the Parties) with
respect to the nature and scope of Nielsen’s businesses as
upgraded and enhanced.
(c) At any time that TCS is
not in compliance with the obligations of this Section 5.6,
TCS shall be liable for the costs, Losses and damages suffered by
Nielsen as a result of each breach of security for which TCS is
responsible under the terms of this Agreement, including this
Section 5.6 and Section 14.3. TCS shall be responsible
for any security breaches caused by TCS, its subcontractors or TCS
Personnel or otherwise resulting from TCS’ failure to comply
with the requirements of Section 5.6 and Section 14.3 of
this Agreement.
(d) Security Relating to
Competitors . Services may not be performed by TCS in a shared
Resource model, facilities, Hardware or Software environment
(“ Shared Environment ”) except as may be
approved in writing by Nielsen pursuant to Section 6.3. If
Nielsen approves and TCS provides the Services to Nielsen from a
Shared Environment and any part of the business of TCS or any such
third party is now or in the future becomes competitive with
Nielsen’s business, then TCS shall establish and comply with
such security practices as are consistent with the obligations
provided in Section 14.3, so that TCS or TCS Agents providing
services to such competitive business shall have no access to
Nielsen’s Confidential Information.
(a) General . TCS
shall provide Nielsen with reports pertaining to the performance of
the Services and TCS’ other obligations under this Agreement
sufficient to permit Nielsen to monitor and manage TCS’
performance (“ Reports ”). The Reports to be
provided by TCS shall include those described in this
Section 5.7 and elsewhere in this Agreement, and those
provided in any SOW(s). In addition, from time to time, Nielsen may
identify additional Reports to be generated by TCS and delivered to
Nielsen on an ad hoc or periodic basis as part of the Services. All
Reports shall be deemed Nielsen Confidential Information. To the
extent reasonably applicable, all Reports shall be reviewed and
approved by Nielsen regarding content, format and distribution
methods and shall be provided to Nielsen:
(i) by secure on-line
connection in an electronic format capable of being accessed by
Microsoft Office components, with the information contained therein
capable of being downloaded or displayed graphically and accessible
from a web browser; and/or (at Nielsen’s option)
34
(ii) in traditional printed
form.
The content, format and distribution
methods for all Reports shall be approved by Nielsen.
(b) Required Reports .
As of the Agreement Effective Date, reports required of TCS shall
include the following:
(i) Off Shore Reports
. TCS shall provide Nielsen with (i) monthly,
(ii) quarterly, (iii) yearly, and (iv) for any other
period as may be reasonably designated by Nielsen from time to
time, reports of the Off-Shore Leverage Percentages achieved for
the relevant period by Nielsen. Each Off-Shore Leverage Percentage
report shall contain the Off-Shore Leverage calculation described
in Section 3.2 for the relevant period as well as cumulative
information as of the Agreement Effective Date to such current
period for each designated Affiliate and the aggregate Leverage
Percentages for Nielsen as a whole.
(ii) MCA Report.
Within thirty (30) days of the end of each calendar quarter
TCS shall provide Nielsen with a detailed reconciliation of the
amount remaining in the MCA, showing the amount remaining from the
prior calculation and all events occurring during the quarter
reported upon (or which should have been reflected in prior
statements), which have reduced the MCA and the amount of each such
reduction, including all adjustments pursuant to
Section 17.
(iii) SOW Reports .
TCS shall report monthly, or on such other timeframe as mutually
agreed by the Parties on (i) Draft SOWs being evaluated, and
(ii) progress against existing SOWs, including on the charges,
actual resources and expenses for each non-fixed price SOW for the
applicable reporting period and Contract Year, comparisons of such
actual resources and expenses against estimated resources and
expenses from a Service Location that is also used to provide
services to a third party or third parties, and any other pertinent
information requested by Nielsen. TCS shall provide Nielsen with
reports on a regular basis, as determined by Nielsen and agreed to
by TCS. It is anticipated that during the first two
(2) Contract Years, TCS shall report in detail the same
Resource information on a monthly basis, Resource time and material
Rate Card SOWs, fixed and variable priced SOWs, and other SOW
tracking methods. Thereafter, the Parties shall determine and
mutually agree upon whether to scale back on the monthly detail
Resource reporting and charging information provided to
Nielsen.
(iv) Network Connections
Reports . TCS will provide reports to Nielsen at least
quarterly detailing data, voice and video usage originating to and
from each Global Delivery Center. Nielsen may reasonably request
and TCS shall provide additional reports from time to
time.
(v) Services Performance
Reports . As part of the Services, TCS shall provide monthly
Services performance reports to Nielsen in a form agreed upon by
the Parties. These reports shall detail TCS’ compliance under
this Agreement with the (i) Tier One Quality of Service
Metrics; (ii) Critical Service Levels; and (iii) any
other Service Level metrics provided in each outstanding SOW.
Unless otherwise specified in this Schedule, each Critical Service
Level and Tier One Quality of Service Metrics shall be measured on
a monthly basis.
35
(c) Back-Up
Documentation . TCS shall provide Nielsen with such
documentation and other information available to TCS as may be
reasonably requested by Nielsen from time to time in order to
verify the accuracy of the Reports provided by TCS. In addition,
TCS shall provide Nielsen with all documentation and other
information reasonably requested by Nielsen from time to time to
verify that TCS’ performance of the Services is in compliance
with the Critical Service Levels and Tier One Quality of Service
Metrics and this Agreement.
(d) Correction of
Errors . TCS shall promptly correct any errors or inaccuracies
in or with respect to the Reports, the information or data
contained in such Reports, or other contract deliverables caused by
TCS or its agents, subcontractors, or third party product or
service providers.
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5.8 |
Financial, Forecasting and Budgeting Support |
(a) TCS shall provide to
Nielsen a quarterly rolling forecast with respect to the Services
to be provided during such quarter for Nielsen’s forecasting
and budgeting purposes, including:
(i) actual and forecasted
utilization of Resources;
(ii) actual and budgeted
Pass-Through Expenses; and
(iii) changes to the
environment impacting Nielsen’s costs or
utilization.
(b) Consistent with and to
support Nielsen’s budgeting and planning cycle, TCS will
develop annual and quarterly financial objectives and budgets and
performance goals in connection with all SOWs. Such objectives,
budgets and goals will be subject to review and approval by Nielsen
before incorporation into TCS’ working plans. In addition,
during Nielsen’s fiscal year budget planning cycle, TCS shall
provide information to Nielsen regarding opportunities to modify or
improve the Services, and reduce the total cost to Nielsen of
receiving the Services.
| Section 6. |
GLOBAL DELIVERY CENTER |
(a) TCS has identified, and
Nielsen has approved, the TCS’ facility located in Chennai,
India to be the primary Off-Shore facility where TCS shall provide
a dedicated secure area in which only Services for Nielsen will be
performed (together with each other TCS facility offering dedicated
secure area for performance of Service, proposed by TCS to serve as
a global development center under this Agreement and approved by
Nielsen, each a “ Global Delivery Center ”). TCS
shall obtain Nielsen’s prior written approval for using any
other TCS facility (located in a building other than the building
for which such approval was granted) in the
36
same or any other geographic location
from which TCS may propose to perform Services, whether or not such
facility is to serve as a Global Delivery Center pursuant to this
Section 6.1, an Other Service Location pursuant to
Section 6.2, or Shared Environment pursuant to
Section 5.6(d). Nielsen hereby approves TCS’ service
location in Baroda, India for TCS to use as one of the Global
Delivery Centers utilized under this Agreement.
(b) TCS shall be responsible
for providing and maintaining, at no additional cost to Nielsen,
(i) the base facility infrastructure of each Global Delivery
Center including standards in accordance Sections 5.1, 5.6, 6.4,
and 16.1, and with Schedule G, and secure floor space for personnel
and (ii) the Software and Hardware identified in Schedules K
(“ Software ”) and L (“ Hardware
”). Nielsen is financially responsible for providing or
reimbursing on a Pass-Through Expense basis the cost of all other
Software not identified on Schedule K which is either requested in
writing by Nielsen or which the parties mutually agree in writing
is necessary for the performance of Services. All changes or
additions to Hardware (except for items described in Schedule L)
shall be made in accordance with mutual written agreement of the
Parties. TCS undertakes to maintain standards of services that the
Parties will mutually agree as adequate for the conduct of work
under this Agreement. If any changes in the requirements of such
standards are specified by Nielsen from time to time, TCS will use
Commercially Reasonable Efforts to implement such requirements and
the Parties will mutually agree on any reimbursement for additional
or incremental cost of complying with such additional requirements
(including the addition of any Hardware not provided in Schedule L)
subject to the procedure provided below provided that the cost of
any infrastructure adjustments requested by TCS and approved by
Nielsen shall be borne by TCS.
(c) Except as otherwise
provided in Section 6.1(b): (i) major infrastructure
needs to support the delivery of Services will be identified and
agreed upon by the Parties in writing ninety (90) days in
advance to ensure adequate resources will be set aside by TCS to
implement infrastructure improvements and changes in a timely
manner; and (ii) implementation of major infrastructure
adjustments require adequate notification (a minimum of ninety
(90) days prior written notice) to TCS prior to commencement
of the adjustments to ensure that there are no disruptions to
service levels. Such adjustments, including expansion of existing
facilities or establishment of new facilities from which SOWs are
to be executed, will only be undertaken by TCS upon receiving
written approval from an authorized representative of
Nielsen.
(d) TCS will maintain an
inventory of all Hardware and Software purchased for servicing
Nielsen’s and its Affiliates’ work that are paid for by
Nielsen. Upon expiration or termination of this Agreement or as
provided in the applicable SOW, at the request of Nielsen TCS shall
return such Hardware and Software to Nielsen, such Affiliate or
their respective vendors or, if requested by TCS and agreed to by
Nielsen, TCS may purchase such Hardware and Software at the lower
of (i) the fair market value, as determined by an agreed-upon
appraisal or (ii) book value, if applicable. TCS acknowledges
that, as between the Parties, Nielsen or such Affiliate has all
rights and title to such Hardware and Software. TCS shall be
responsible to exercise the same level of care to prevent damage or
loss to such Hardware and Software as it exercises to prevent
damage or loss to its own Hardware and Software, but in no event
less than reasonable care, and TCS shall (in addition to
maintaining the required insurance amounts provided in
Section 30) maintain sufficient property insurance to provide
for replacement cost coverage for Nielsen’s Hardware or
Software in TCS’ possession. TCS shall use such Hardware and
Software only for purposes of providing Services to
Nielsen.
37
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6.2 |
Change of TCS Service Location |
(a) TCS shall obtain
Nielsen’s prior approval (which Nielsen may withhold in its
sole discretion) of Other Service Locations from which TCS may
propose to perform Services. Both Parties agree to use Commercially
Reasonable Efforts to work towards minimizing the disruption of
services to Nielsen during the transition and to minimize the
transition or additional costs associated with a TCS service
location work transfer. Prior to any such movement to Other Service
Locations, TCS shall identify to Nielsen in writing all changes to
the DRP and BCP required by such relocation.
(b) Except for
(i) relocation to Other Service Locations required by this
Agreement or an applicable SOW or (ii) relocation to Other
Service Locations at the request of or due to the requirements of
Nielsen, any incremental costs and expense incurred by Nielsen
(including any incremental Service Taxes) as a result of a
relocation to an Other Service Location shall be reimbursed to
Nielsen by TCS. Nielsen shall reimburse TCS for any initial and/or
incremental costs and expenses (including any incremental Service
Taxes) on a Pass-Through Expenses basis incurred by TCS as a result
of any relocation to an Other Service Location required by this
Agreement or an applicable SOW or made at the request of or due to
the requirements of Nielsen.
(c) TCS shall obtain
Nielsen’s prior written approval for any relocation of
Services except for a transfer to another area of the same site or
floor from which the Services are already being provided (i.e.,
moves to a new floor or new buildings must be approved by Nielsen).
Such approval shall not be unreasonably delayed or withheld by
Nielsen. Where TCS relocates Resources to another area of the same
site or floor from which the Services are already being provided,
TCS will give Nielsen reasonable advance notification of such move,
but in no case shall such notification be provided less than one
(1) week before such move.
Prior to migrating or
relocating any of the Services to a Shared Environment, TCS shall
provide to Nielsen, for Nielsen’s approval, a proposal for
such migration or relocation, including cost and price benefits and
savings or risks to Nielsen.
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6.4 |
Network Connections; Nielsen Standards |
(a) TCS shall be linked to
one or more Nielsen location(s), as mutually agreed by the Parties,
via high speed data link(s) with appropriate bandwidth as
reasonably required in accordance with the requirements of this
Section 6.4. Notwithstanding anything to the contrary herein,
the initial and recurring cost of the network and any additional
link(s) will be borne by TCS. The cost of any network demark
equipment (e.g., routers) that need to be installed at such
premises and the “last mile” connectivity to Nielsen
(up to Nielsen’s firewall) will be borne by TCS. The cost of
any equipment behind any such firewall will be borne by Nielsen,
with the exception of productivity Hardware/Software that Nielsen
or the Affiliate and TCS agree are required in order for TCS to
perform Off-Shore Services in as efficient a manner
38
as if the Services were performed
on-shore. The costs of any such productivity Hardware/Software, and
the cost of installation and maintenance of such Hardware/Software,
shall be borne by TCS.
(b) TCS shall ensure complete
redundancy on the “last mile” circuits (no single point
of failure) between TCS’ and Nielsen’s networks. TCS
shall provide sufficient capacity such that usage of links will not
exceed an average of seventy percent (70%) of available
bandwidth over any fifteen (15) minute time period over a ten
(10) hour day for normal use. Occasional file transfer
requirements are exempt from this seventy percent
(70%) standard. Nielsen will provide assistance in measuring
the link utilization. If in a calendar month seventy percent
(70%) or more of the samples show that the link utilization
exceeds seventy percent (70%), TCS shall take necessary actions to
either add capacity or increase efficiency to reduce future link
utilization below the required threshold without adversely
impacting Nielsen operations, in accordance with
Section 6.4(c).
(c) TCS shall promptly, and
in any event no later than thirty (30) days after the end of
any month where the bandwidth standard provided in
Section 6.4(b) above is not met, provide the upgrade plans for
the non-conforming link with Nielsen and, upon mutual agreement of
the Parties, TCS will initiate necessary actions to reduce future
link utilization and shall complete the implementation of such plan
within ninety (90) days. If TCS reasonably determines that
installation of additional Hardware/Software behind the firewall of
Nielsen will increase the efficiency and productivity of the data
links, Nielsen will consider the recommendation, and if acceptable
in Nielsen’s reasonable discretion, Nielsen will work with
TCS to effect the installation. The cost of acquiring, installing
and maintaining any such Hardware/Software shall be borne by
TCS.
(d) With Nielsen’s
approval TCS may buy network lines and equipment at Nielsen’s
internal costs, when possible. Subject to Schedule G, all equipment
connected to Nielsen’s system must adhere to Nielsen’s
then current standards and technology stacks. Nielsen will provide
standards to TCS and update them regularly. Nielsen shall be
responsible to provide standards, and TCS shall have a reasonable
amount of time for TCS to move to any new standards, subject to
Schedule G.
(e) If any equipment provided
or used by TCS or TCS Personnel is connected directly to the
network(s) of Nielsen, TCS shall be responsible to ensure that such
Hardware shall be:
(i) submitted for review and
receive approval in advance by Nielsen;
(ii) in strict compliance
with Nielsen’s then-current security policies, architectures,
standards, rules and procedures provided in Schedule G;
and
(iii) in strict compliance
with Nielsen’s then-current Hardware and Software
specifications.
39
(f) TCS shall not install or
permit the installation of any other Software on such Hardware for
use in providing the Services or connected to Nielsen’s
network without Nielsen’s prior written approval.
(g) Nielsen will consider
opportunities to sub-license or loan for appropriate portions of
the Term and at no charge to TCS, appropriate portions of any
Hardware, Software, case tools etc. that Nielsen uses to enhance
productivity (to the extent permitted by the relevant product
license) so as to ensure usage of common “best
practices” among Personnel of the Parties. Any such
transaction will be as agreed upon in writing by the
Parties.
(h) TCS shall comply with the
Nielsen Standards provided in Schedule G, as the same may be
modified at any time during the Term and any Termination Assistance
Period.
| Section 7. |
THIRD PARTY AGREEMENTS |
Throughout the Term and as
part of the Services, TCS shall assume financial, administrative
and maintenance responsibility for the Assigned Agreements provided
in Schedule I (“ Third Party Contracts ”) to the
same extent as if TCS were directly obligated under such
agreements. Nielsen shall, if requested by TCS, execute an
appropriate Assignment Agreement making the assignment effective as
of the date of assignment indicated in the Assignment Agreement or
SOW and obtain the Required Consent as may be necessary for the
assignment. TCS and its Affiliates shall comply with the duties
imposed on Nielsen by such Assigned Agreements. Nielsen retains
responsibility for all liabilities and Claims under the Assigned
Agreement as they relate to the period prior to the date of
assignment indicated in the Assignment Agreement or SOW. TCS or its
Affiliates shall pay directly, or reimburse Nielsen if Nielsen or
an Affiliate has paid, the charges and other amounts under such
contracts that are attributable to periods from and after the date
of assignment indicated in the Assignment Agreement or SOW. TCS
may, to the extent permitted by the Assigned Agreements, renew,
modify, terminate or cancel any such Assigned Agreements. Any
modification, termination or cancellation fees or charges imposed
upon Nielsen in connection with any modification, termination or
cancellation of the Assigned Agreements shall be paid by
TCS.
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7.2 |
Performance Under Assigned Agreements |
The Parties shall abide by
the terms of, and shall not breach or violate, any of the Assigned
Agreements. The Parties shall promptly inform the other Party of
any breach of, or misuse or fraud in connection with, any of the
Assigned Agreements of which the notifying Party becomes aware and
shall cooperate with the other Party to prevent or stay any such
breach, misuse or fraud. Each Party shall pay all amounts due for
any penalties or charges (including amounts due to a third party as
a result of a Party’s failure to promptly notify the other
Party pursuant to the preceding sentence), associated taxes, legal
expenses and other incidental expenses incurred as a result of such
Party’s nonperformance of its obligations with respect to the
Assigned Agreements.
40
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7.3 |
Third Party Invoices for Assigned Agreements |
TCS shall pay the invoices
submitted by third parties in connection with the Assigned
Agreements as they relate to the period on or after the date of
assignment indicated in the Assignment Agreement or SOW and shall
be responsible for any late fees in respect of such third party
invoices. Nielsen shall reimburse TCS for the amount of any such
invoice and late fee as they relate to the period prior to the date
of assignment indicated in the Assignment Agreement or
SOW.
TCS shall manage, administer
and maintain the Retained Agreements provided in Schedule I. TCS
shall provide Nielsen with reasonable notice of any renewal,
termination or cancellation dates and fees with respect to the
Retained Agreements. TCS shall not renew, modify, terminate or
cancel any such Retained Agreements without Nielsen’s
consent. Any unauthorized modification, termination or cancellation
fees or charges imposed upon Nielsen in connection with any such
modification, termination or cancellation shall be paid by
TCS.
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7.5 |
Retained Agreement Invoices |
(a) TCS shall:
(i) receive all Retained
Agreement Invoices;
(ii) review and correct any
errors in any such Retained Agreement Invoices in a timely manner;
and
(iii) use Commercially
Reasonable Efforts to submit such Retained Agreement Invoices to
Nielsen for payment within a reasonable period of time prior to the
due date or, if a discount for such payment is given, the date on
which Nielsen may pay such Retained Agreement Invoice with a
discount.
(b) Nielsen shall pay the
Retained Agreement Invoices received and approved by TCS. Nielsen
shall only be responsible for payment of the Retained Agreement
Invoices and shall not be responsible to TCS for any management,
administration or maintenance fees of TCS in connection with the
Retained Agreement Invoices. Nielsen shall be responsible for any
late fees in respect of the Retained Agreement Invoices unless
TCS’ act or omission is the cause of such late fees. If TCS
fails to submit a Retained Agreement Invoice to Nielsen for payment
in a timely manner due to its fault or the fault of a party under
its control, TCS shall be responsible for any discount not received
or any late fees in respect of such Retained Agreement
Invoice.
| Section 8. |
SERVICE LEVELS AND PERFORMANCE REQUIREMENTS |
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8.1 |
Service Level Performance Methodology |
The Tier One Quality of
Service Metrics shall measure TCS’ performance at the
Agreement level. Critical Service Levels shall measure TCS’
performance at the SOW level.
41
The Service Level performance
methodology for both the Tier One Quality of Service Metrics and
the Critical Service Levels shall be provided in Schedule B
(“ Service Levels ”). If certain Critical
Service Levels apply to the Services under an SOW, the applicable
Critical Service Levels shall be identified and provided in such
SOW and the applicable metrics for each Critical Service level
shall be developed and agreed by the Parties in accordance with the
Service Level methodology described in Schedule B.
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8.2 |
Tier One Quality of Service Metrics and Critical Service
Levels |
(a) As of each Services
Commencement Date, TCS shall perform the Services at the levels of
accuracy, quality, completeness, timeliness, responsiveness and
productivity that are equal to or higher than:
(i) the accepted industry
norms applicable to the performance of such Services by top tier
service providers; and
(ii) the documented or
otherwise verifiable levels of accuracy, quality, completeness,
timeliness, responsiveness and productivity as described in the SOW
or SOW Transition Plan provided internally by Nielsen (or by the
previous service provider) in the six (6) months prior to the
applicable Services Commencement Date.
(b) Without limiting the
generality of the foregoing or the other obligations of TCS, where
Service Levels apply, TCS shall perform the Services so as to meet
or exceed the Critical Service Levels and Tier One Quality of
Service Metrics as of the Services Commencement Date or such other
date agreed in the applicable SOW or Attachments thereto in
accordance with the Service Level methodology provided in Schedule
B. As part of the Services, TCS shall be responsible for meeting
the applicable Critical Service Levels and Tier One Quality of
Service Metrics even when doing so requires the provision of
additional full-time or temporary TCS Personnel resources,
temporary contract personnel resources, Services provided by
Approved Subcontractors, or other unique service needs provided by
non-TCS Personnel.
(c) Nothing in this Agreement
shall be construed as preventing the Parties from agreeing to a
Service Level credit regime on a SOW basis. If either Party refuses
to agree to a Service Level credit regime for a particular SOW,
however, such refusal shall not be deemed to be unreasonable for
purposes of Sections 17.3(a) or 26.3(i).
(a) Tier One Quality of
Service Metrics and Critical Service Level Failures . TCS
recognizes that its failure to meet the Tier One Quality of Service
Metrics and Critical Service Levels may have a materially adverse
impact on the business and operations of Nielsen. Accordingly,
Nielsen may wholly or partially terminate this Agreement or an SOW,
as applicable, for failures of TCS to achieve the Tier One Quality
of Service Metrics and Critical Service Levels as described in this
Section 8.3, Schedule B or a SOW, as applicable.
(b) Tier One Quality of
Service Metric Failures . Beginning four (4) months after
the Agreement Effective Date, if for reasons other than those
exceptions provided
42
in Section 8.7, TCS fails to meet
any single Tier One Quality of Services Metric (A) for three
(3) consecutive months or (B) in more than any six
(6) months in a rolling twelve (12) month period, or
(C) fails to meet at least seventy percent (70%) of Tier
One Quality of Service Metrics in any three (3) months in a
rolling twelve (12) month period, then Nielsen shall upon
thirty (30) days written notice Nielsen may terminate this
Agreement, in whole or in part, as provided in
Section 26.3(ii). If Nielsen exercises the termination right
provided in this Section 8.3, then the MCA shall be reduced in
accordance with Section 17.3.
(c) Use of Alternate
Sources . In addition to the termination rights provided in
Section 8.3, if TCS fails to meet the same Critical Service
Levels for three (3) consecutive measurement periods, Nielsen
may, upon thirty (30) days written notice, in addition to any
other remedy it may have under this Agreement:
(i) require TCS to obtain, at
TCS’ sole cost, expert assistance from a third party
reasonably acceptable to Nielsen to assist TCS to comply with the
applicable Service Level and TCS shall comply with such required
Service Level; or
(ii) Nielsen acting
reasonably determines to send Nielsen Personnel or have TCS
Resources sent to Nielsen’s facility to assist in the
resolution of the problem and the resumption of the affected
Services, in which case TCS shall promptly reimburse Nielsen for
the travel and out-of-pocket costs for such Nielsen
Personnel.
Without limiting the
generality of the foregoing or the other obligations of TCS, if as
a result of failure of TCS to provide the Services with the
performance standards and service levels as required under this
Agreement, any Material Disruption in the Services occurs, upon
notification by Nielsen of such Material Disruption, TCS shall
promptly use best efforts, with reasonable cooperation from
Nielsen, to mitigate the impact of such Material Disruption and to
rework and to restore the Services. If TCS fails to correct and
restore the Services within three (3) days after Nielsen
notifies TCS of the Material Disruption, Nielsen shall be entitled,
upon notice to TCS, to procure or correct the Services until TCS is
able to restore and perform the Services as required under this
Agreement. “ Material Disruption ” as used in
this Section 8.4 shall mean a failure of TCS to meet the
Service Levels and other applicable performance standards under
this Agreement or otherwise fulfill its obligations under this
Agreement that causes Nielsen’s failure to meet its
contractual obligations to Nielsen clients. Notwithstanding the
foregoing, TCS obligations under this provision shall not apply to
a Material Disruption caused by any exceptions described in
Section 8.7 or due to reasons primarily attributable to
Nielsen or to Nielsen Agents. In the event of a disagreement
between the Parties as to the primary cause of the Material
Disruption, TCS shall, at Nielsen’s request, proceed with
best efforts for rework or restoration of the Services as required
by this Section 8.4, pending resolution of such disagreement
between the Parties. Any such amounts payable by Nielsen pursuant
to this Section 8.4 shall count toward the MCA.
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8.5 |
Adjustment of Critical Service Levels and Tier One Quality
of Service Metrics |
(a) The Tier One Quality of
Service Metrics may be modified or adjusted only by mutual
agreement of the Parties.
(b) The Critical Service
Levels shall be adjusted in accordance with the
following:
(i) Nielsen shall
periodically review TCS Services performance in accordance with the
methodology and process outlined in Schedule B and its applicable
Attachments, but at least annually; and
(ii) with respect to any
Critical Service Levels that require periodic adjustment pursuant
to this Agreement or are no longer appropriate because of an
increase, decrease or change to the Services, Nielsen shall adjust
such Critical Service Levels accordingly.
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8.6 |
Failure to Meet Service Level. |
(a) If TCS fails to meet any
Service Level, TCS shall:
(i) investigate and report on
the causes of the problem;
(ii) provide a root cause
analysis of such failure as soon as practicable after such
failure;
(iii) advise Nielsen, as and
to the extent requested by Nielsen, of the status of remedial
efforts being undertaken with respect to such problems;
and
(iv) correct the problem and
begin meeting the Critical Service Levels and Tier One Quality of
Service Metrics.
(b) TCS shall use
Commercially Reasonable Efforts to complete the root cause analysis
within five (5) Business Days for Critical Service Levels and
ten (10) Business Days for Tier One Quality of Service Metrics
after the occurrence of the failure, notice by Nielsen or the
monthly reporting period that identified the deficiency; provided,
however, that, if it is not capable of being completed within the
specified timeframes, TCS shall complete such root cause analysis
as quickly as possible and shall notify Nielsen prior to the end of
the initial period as to the status of the root cause analysis and
the estimated completion date.
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8.7 |
Exceptions to Service Level and other Performance Failure of
TCS |
TCS shall be relieved of
failures to comply with the Tier One Quality of Service Metrics,
Critical Service Levels or any other performance measures or
Milestones under this Agreement or SOW and TCS shall not be in
breach nor shall not suffer any liability therefore, to the extent
and only to the extent that such failure results from:
(a) a Force Majeure Event
(including during implementation of the Business Continuity Plan
and/or Disaster Recovery Plan in response to such
Event);
44
(b) delay or failure of
Nielsen or Nielsen representatives and agents to perform a Nielsen
task or obligations identified under this Agreement or applicable
SOW, including delay or failure of Nielsen to provide TCS with
required review, approval, rejection or other actions in a timely
manner and any other breach of this Agreement by Nielsen that
materially adversely impacts TCS’ ability to perform or
comply;
(c) prioritization of tasks,
reallocation of resources among different Projects, reduction of
resources for a Project requested by Nielsen to the extent that
Nielsen agrees in writing for relief of TCS to achieve Tier One
Quality of Service Metrics or Critical Service Levels or any other
performance measures or Milestones under this Agreement or
SOW;
(d) Failures resulting from
network, Hardware, Software, desktops, data centers, and facilities
problems for which Nielsen or Nielsen’s other contractors
have retained operational or administrative responsibility;
or
(e) Any activities and/or
outages mutually agreed upon by the Parties.
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8.8 |
Measurement and Monitoring Tools |
As part of the Services, TCS
shall implement the necessary measurement and monitoring tools and
procedures required to measure and report TCS’ performance of
the Services against the applicable Critical Service Levels and
Tier One Quality of Service Metrics. Such measurement and
monitoring shall permit reporting at a level of detail sufficient
to verify compliance with the Critical Service Levels and Tier One
Quality of Service Metrics, and shall be subject to audit by
Nielsen. TCS shall provide Nielsen with information and access to
such tools and procedures upon request, for purposes of
verification.
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8.9 |
Continuous Improvement and Best Practices |
TCS shall identify ways to
improve the Critical Service Levels and Tier One Quality of Service
Metrics as provided in the applicable SOW or processing schedule,
including:
(a) on a continuous basis, as
part of its total quality management process, identify ways to
improve the Critical Service Levels and Tier One Quality of Service
Metrics; and
(b) identify and apply proven
techniques and tools from other installations within its operations
or other third party processes that would benefit Nielsen either
operationally or financially. TCS shall implement such processes at
no charge to Nielsen.
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8.10 |
Nielsen Satisfaction Surveys |
(a) Nielsen Satisfaction
Surveys shall:
(i) contain the content and
scope provided in Schedule D;
(ii) be administered in
accordance with Schedule D; and
45
(iii) be subject to
Nielsen’s approval.
(b) Schedule and
Requirements . During the seventh (7th) month following
the Services Commencement Date of each operational process area and
yearly thereafter, TCS shall conduct and complete customer
satisfaction surveys, as approved by Nielsen, of appropriate
(either internal or external) users of the service approved by
Nielsen. The results of the initial Nielsen Satisfaction Survey
shall be the baseline for the measurement of the performance
improvements described in Section 24.1(n). Each survey
conducted according to the provisions of this Section 8.10,
shall, at a minimum, cover a representative sampling of Nielsen
users and senior management of Nielsen, in each case as specified
by Nielsen. TCS agrees that Nielsen satisfaction (as determined in
accordance with TCS’ internal evaluation procedures) will be
taken into account in the performance evaluations for TCS Key
Personnel. If the results of the Nielsen Customer Satisfaction
Survey indicate that there has been a decrease in customer
satisfaction, TCS shall, at its cost (unless the Parties otherwise
agree):
(i) submit to Nielsen, for
Nielsen’s approval, a plan to improve customer satisfaction
(consistent with Nielsen’s cost reduction objectives);
and
(ii) upon Nielsen’s
approval of such plan, implement and adjust such plan. If TCS fails
to conduct a Nielsen Customer Satisfaction Survey in accordance
with the provisions of this Section 8.10, then upon thirty
(30) days notice, Nielsen may engage a third party to conduct
the Nielsen Customer Satisfaction Survey pursuant to this
Section 8.10, at TCS’ cost. The results of such third
party survey shall be binding on the Parties.
(c) Nielsen Conducted
Surveys . In addition to the satisfaction surveys to be
conducted by TCS pursuant this Section 8.10, Nielsen may at
its sole discretion survey selected Users and Nielsen Clients about
satisfaction with TCS’ performance in connection with and as
part of satisfaction surveys periodically conducted by TCS. At
Nielsen’s request, TCS shall cooperate and assist Nielsen
with the formulation of the survey questions, protocols and
procedures and the execution and review of such surveys. Nielsen
will share the results of said survey with TCS. Internal Nielsen
surveys are non-binding with respect to Critical Service Levels or
Tier One Quality of Service Metrics as identified in Schedule D and
its applicable Attachments.
| Section 9. |
RESTRICTIVE COVENANT |
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9.1 |
Additional Restrictions |
In addition to, and not in
substitution for, the restrictions on TCS with respect to the use
of Nielsen Confidential Information hereunder and the allocation of
Intellectual Property Rights between the Parties, and as a material
inducement to Nielsen to enter into this Agreement, TCS agrees
that, during the Term of this Agreement and for two (2) years
thereafter:
(a) TCS and its Controlled
Subsidiaries will not engage in a Restricted Business. For clarity,
except as provided in Section 9.1(b) and 9.1(c), nothing
contained in this Agreement, including this Section 9.1(a),
shall restrict TCS and its Controlled Subsidiaries from performing
services or providing work product to their unaffiliated customers
as part of TCS’ information technology outsourcing or
business process outsourcing services, even if such
46
customers are themselves engaged in a
Restricted Business or even if some of the services provided by TCS
or its Controlled Subsidiary to such customers are similar or
identical to the services or products offered by the portions of
Nielsen and its Affiliates engaged in the Restricted
Business;
(b) TCS and its Controlled
Subsidiaries will not perform services for, provide work product
to, or license technology to, any Tier One Restricted Company or
any Affiliate of any Tier One Restricted Company anywhere in the
world; and
(c) Except with prior written
consent of Nielsen (which it may withhold in its discretion), TCS
will not assign any Domain Expert who in the prior twenty
four (24) months has performed Services under this Agreement
to perform any services for any entity that is a Tier Two
Restricted Company or an Affiliate of a Tier Two Restricted Company
regardless of whether the work for such Tier Two Restricted Company
relates to the work such Domain Expert performed for Nielsen;
provided, however:
(i) If despite TCS’
Commercially Reasonable Efforts to the contrary TCS is not able to
find other work for such Domain Expert (and it is not as part of a
general lack of demand for TCS’ services such that it is not
only the Domain Expert who is unallocated) TCS may so inform
Nielsen and if Nielsen is unwilling to have such Domain Expert
perform Services for Nielsen as a non-Domain Expert until the
restriction lapses (or Nielsen is otherwise willing to pay the
charges which such Domain Expert would incur while he or she
awaited the lapse of the restriction), then TCS may assign such
Domain Expert to perform services for such Tier Two Restricted
Company;
(ii) If the proposed
assignment is for an Affiliate of the Tier Two Restricted Company
and such Affiliate is truly separate and distinct from the Tier Two
Restricted Company and is not engaged in any business competitive
with Nielsen or its Affiliates, then provided that adequate
assurances are provided to Nielsen, Nielsen will not unreasonably
withhold its consent; and
(iii) The provisions of this
Section 9.1(c)(iii) shall not apply after two (2) years
after such Domain Expert ceased to be associated with Nielsen
account or if this Agreement or an applicable SOW is terminated by
TCS pursuant to Section 26.5 or by Nielsen pursuant to
Sections 26.2 or 26.3.
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9.2 |
Remedies For Breach of Sections 9.1(a) or
9.1(b) |
(a) If Nielsen believes that
TCS or a Controlled Subsidiary is in breach of the provisions of
Sections 9.1(a) or 9.1(b), Nielsen may notify TCS who shall
promptly investigate the matter and within ten (10) Business
Days TCS shall report to Nielsen on whether TCS agrees or disagrees
that TCS or a Controlled Subsidiary is in breach. If TCS disagrees
it shall provide reasonable detail about the activities it is
engaged in with respect to Nielsen’s claim and state the
basis for TCS’ belief that it or its Controlled Subsidiary is
not in breach. If TCS reports that it or its Controlled Subsidiary
is not in breach, if Nielsen desires to further pursue the matter
the dispute shall be submitted to binding arbitration in accordance
with the provisions of Section 25, solely for determination of
whether TCS is in breach of Sections 9.1(a) or 9.1(b), with
hearings being held no later than ten (10) Business Days
thereafter and the arbitrator instructed to issue a decision no
later than ten (10) Business Days thereafter.
47
(b) If (i) TCS
acknowledges that it or its Controlled Subsidiary is in breach of
Sections 9.1(a) or 9.1(b) and does not immediately begin good faith
efforts to cure the breach or does not actually cure the breach
within sixty (60) days of TCS’ notice to Nielsen,
(ii) the arbitrator determines that TCS or its Controlled
Subsidiary is in breach and TCS does not immediately begin good
faith efforts to cure the breach or does not actually cure the
breach within sixty (60) days of such decision, (iii) the
arbitrator determines that due to insufficient cooperation or
participation in the arbitration by TCS it cannot determine whether
TCS or such Controlled Subsidiary is in breach, or (iv) TCS
fails to respond to Nielsen’s notice in the time period
required by Section 9.2(a), then Nielsen shall be entitled to
seek and obtain injunctive relief which TCS agrees it will not
oppose and TCS will waive Nielsen’s posting of bond or
proving irreparable injury. For clarity, it is agreed that
transferring of the Restricted Business by TCS or applicable TCS
Controlled Subsidiary to an Affiliate of TCS which is not a
Controlled Subsidiary shall be deemed to be a cure, so long as
neither TCS nor any Controlled Subsidiary exercises management
control of such business.
(c) The remedies provided in
this Section 9.2 are the sole and exclusive remedies of
Nielsen with respect to any breach of Sections 9.1(a) or 9.1(b) by
TCS or any TCS Controlled Subsidiary.
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9.3 |
Remedies For Breach of Section 9.1(c) |
If TCS is in breach of
Section 9.1(c), Nielsen shall be entitled to seek and obtain
injunctive relief which TCS agrees it will not oppose and TCS will
waive Nielsen’s posting of bond or proving irreparable
injury. The time period of the restriction shall be extended for a
period of time equal to the period of the breach.
If during period of the above
restrictions TCS or a Controlled Subsidiary desires to engage in a
new line of business and TCS is in doubt about the applicability of
the restriction of Section 9.1(a) to such new line of
business, TCS may (without being obligated to do so) notify Nielsen
that it intends to enter into such specific new line of business or
agreement with a customer which might constitute a new line of
business, fully describing the circumstances. If Nielsen does not
respond within ten (10) Business Days of receipt of the notice
(or responds that it agrees that the restriction does not apply),
TCS shall be free to undertake the described activity. If Nielsen
does object, the Parties shall attempt to resolve the disagreement
expeditiously, but if it is not resolved within ten (10) days
of Nielsen’s objection TCS may have the matter resolved
pursuant to Section 25, with hearings being held no later than
ten (10) Business Days thereafter and the arbitrator
instructed to issue a decision no later than ten (10) Business
Days thereafter.
48
| Section 10. |
TCS PERSONNEL |
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10.1 |
Levels and Retention of Resources |
(a) TCS shall provide Nielsen
with the number of TCS Resources dedicated full time to providing
the Services at the end of every ninety (90) day period after
the Agreement Effective Date. If a SOW contains a Baseline Service
Charge, TCS shall not reduce the number of such Resources providing
the Services under any SOW until such time as Nielsen confirms that
TCS has met the Critical Service Levels and Tier One Quality of
Service Metrics or completion requirements of the applicable SOW.
For all SOWs, any changes in staffing requirements at
(i) Nielsen Service Locations; (ii) TCS Service
Locations; and (iii) Other Service Locations must be approved
in advance by Nielsen.
(b) TCS shall use
Commercially Reasonable Efforts to keep the Resource turnover rate
at a minimum across the Nielsen accoun
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