MASTER PPROFESSIONAL SERVICE
AGREEMENT
Effective October 1,
2006
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1. BACKGROUND AND OBJECTIVES
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1
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1
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1
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2
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2. DEFINITIONS AND DOCUMENTS
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2
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2
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17
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2.3 Associated Contract
Documents
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17
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18
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18
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18
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18
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18
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19
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4.3 Termination Assistance
Services
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21
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25
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26
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27
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5.1 Supplier Responsibility
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27
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5.2 Financial Responsibility
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27
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5.3 Contingent Arrangements
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27
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5.4 Failure to Obtain Required
Consents
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27
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6. FACILITIES, SOFTWARE, EQUIPMENT, CONTRACTS
AND ASSETS ASSOCIATED WITH THE PROVISION OF SERVICES
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27
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27
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6.2 Use of Supplier Facilities
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31
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6.3 ABM Rules/Employee Safety
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31
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32
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ABM/IBM Proprietary
Information
TABLE OF CONTENTS
(continued)
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Page
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33
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6.6 Third Party Contracts
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36
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6.7 Assignment of Licenses, Leases and Related
Agreements
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37
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6.8 License to ABM Third Party Software and
Materials
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38
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6.9 License to Supplier Third Party Software
and Materials
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39
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6.10 Managed Third Parties
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40
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41
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41
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42
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42
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7.2 Service Level Credits and Deliverable
Credits
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43
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43
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7.4 Continuous Improvement
Reviews
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43
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7.5 Measurement and Monitoring
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44
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44
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7.7 Notice of Adverse Impact
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45
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45
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8.1 Transitioned Personnel
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45
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8.2 Employee Benefit Plans
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47
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8.3 Other Employee Matters
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49
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8.4 Key Supplier Personnel
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50
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8.5 Supplier Account Executive
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51
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8.6 Supplier Personnel Are Not ABM
Employees
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51
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8.7 Replacement, Qualifications, and Retention
of Supplier Personnel
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51
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8.8 Training/Career
Opportunities
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52
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8.9 Conduct of Supplier
Personnel
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52
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8.10 Restrictions on Changes in Supplier
Staffing/Facilities
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53
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53
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8.12 Collective Bargaining Agreements and warn
Act
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53
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9. SUPPLIER RESPONSIBILITIES
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54
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ABM/IBM Proprietary
Information
TABLE OF CONTENTS
(continued)
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9.1 Policy and Procedures Manual
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54
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55
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56
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9.4 Quality Assurance and Internal
Controls
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56
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9.5 Architecture, Standards and Information
Technology Planning
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57
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58
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60
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61
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9.9 Access To Specialized Supplier Skills and
Resources
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61
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61
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9.11 Agency and Disbursements
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65
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66
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9.13 Telecommunications Matters
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66
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67
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9.15 Retained Systems and Business
Processes
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68
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9.16 Network Configuration Data
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69
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69
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69
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70
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70
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70
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11.2 Pass-Through Expenses
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71
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72
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72
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75
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11.6 Extraordinary Events
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76
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79
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ABM/IBM Proprietary
Information
TABLE OF CONTENTS
(continued)
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11.11 ABM Benchmarking Reviews
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79
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11.12 Transport Rate Review
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81
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81
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12. INVOICING AND PAYMENT
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82
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83
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13. ABM DATA AND OTHER PROPRIETARY
INFORMATION
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85
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13.1 ABM Ownership of ABM Data
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85
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13.2 Safeguarding ABM Data
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85
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86
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88
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14. OWNERSHIP OF MATERIALS
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89
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89
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90
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14.3 Supplier Owned Materials
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91
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92
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93
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14.6 ABM Rights Upon Expiration or Termination
of Agreement
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93
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15. REPRESENTATIONS AND
WARRANTIES
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96
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96
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96
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15.3 Efficiency and Cost
Effectiveness
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97
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97
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ABM/IBM Proprietary
Information
TABLE OF CONTENTS
(continued)
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15.10 Compliance with Laws
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100
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102
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102
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16. INSURANCE AND RISK OF LOSS
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102
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102
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104
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104
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17.1 Indemnity by Supplier
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104
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106
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17.3 Additional Indemnities
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107
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107
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17.5 Indemnification Procedures
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108
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17.6 Indemnification Procedures —
Governmental Claims
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109
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109
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18.3 Limitation of Liability
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111
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114
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19.1 Informal Dispute Resolution
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114
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115
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19.4 Continued Performance
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115
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116
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116
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20.1 Termination for Cause
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116
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20.2 Termination for Convenience
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117
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20.3 Termination Upon Supplier Change of
Control
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117
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20.4 Termination Upon ABM Mergers and
Acquisitions
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117
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20.5 Termination for Insolvency
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117
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Abm/Ibm Proprietary
Information
TABLE OF CONTENTS
(continued)
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20.6 ABM Rights Upon Supplier’s
Bankruptcy
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118
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119
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21.1 Binding Nature and
Assignment
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119
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21.2 Entire Agreement; Amendment
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119
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120
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122
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122
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21.6 Relationship of Parties
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122
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122
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21.8 Consents and Approval
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122
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21.9 Waiver of Default; Cumulative
Remedies
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123
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123
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123
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21.14 Third Party Beneficiaries
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123
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21.15 Covenant Against Pledging
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123
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21.16 Order of Precedence
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124
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21.17 Hiring of Employees
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124
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124
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125
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21.20 Covenant of Good Faith
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125
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125
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21.22 Right to Perform Service for
Others
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125
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21.23 Eligible Recipients
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125
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ABM/IBM Proprietary
Information
MASTER PROFESSIONAL SERVICES
AGREEMENT
This Master
Professional Services Agreement (this “ Agreement
”) is entered into effective October 1, 2006 (the
“ Effective Date ”) by and between ABM
Industries Incorporated , a Delaware corporation having a
principal place of business in San Francisco, California (“
ABM or Customer ”), and International Business
Machines Corporation, a New York corporation having a principal
place in Somers, New York (“ Supplier
”).
WHEREAS, ABM and
Supplier have engaged in extensive negotiations, discussions and
due diligence that have culminated in the formation of the
contractual relationship described in this Agreement;
and
WHEREAS, ABM
desires to procure from Supplier, and Supplier desires to provide
to ABM and the Eligible Recipients the Services described in this
Agreement and in the Companion Agreement(s) (defined below), on the
terms and conditions specified herein.
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, ABM and Supplier (the
“ Parties ” and each, a “ Party
”) hereby agree as follows:
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1.
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BACKGROUND AND
OBJECTIVES
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1.1
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ITO Services .
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ABM
desires that certain application management, telecommunication, IT
infrastructure, help desk, and other information technology
services presently performed and managed by or for ABM and the
Eligible Recipients and certain additional information technology
services, as each is described in this Agreement (collectively
“ ITO Services ”) be performed and managed by
Supplier. Supplier has carefully reviewed ABM’s requirements,
has performed all due diligence it deems necessary, and desires to
perform and manage such ITO Services for ABM and the Eligible
Recipients.
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1.2
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Goals and Objectives
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The
Parties acknowledge and agree that the specific goals and
objectives of the Parties in entering into this Agreement are
to:
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(a)
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attain ABM’s specific
objectives for the Services, including:
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(i)
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providing Services and solutions in
full alignment with business unit requirements and exploiting the
technologies and associated services for competitive
advantage;
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(ii)
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maintaining and continuously
improving quality of the Services, improving availability and
responsiveness of the Services and meeting deliverables on time and
on budget;
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(iii)
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reducing overall expenses and
efficiently deploying capital associated with the Services;
and
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(iv)
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measuring and improving overall
customer satisfaction, proactively anticipating customer needs and
maintaining clear accountability with respect to the Services;
and
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(b)
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attain ABM’s broader
objectives for entering into this Agreement with Supplier,
including:
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(i)
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improving ABM’s and the
Eligible Recipients’ access to resources and technology, and
leveraging Supplier’s size, scale, and expertise to make
overall improvements in delivery of the Services; and
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ABM/IBM Proprietary
Information
Page 1 of 126
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(ii)
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achieving additional reductions in
expenses and capital that are otherwise not achievable by ABM,
changing fixed costs to variable costs by procuring Services as
needed, based on business demand and providing better linkage of
cost to the discrete Services provided, and increasing ABM’s
and the Eligible Recipients’ ease and accuracy associated
with invoicing and internal chargeback capabilities.
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1.3
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Interpretation
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The
provisions of this Article 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 this Agreement’s terms and conditions, as
set forth hereinafter. However, to the extent the terms and
conditions of this Agreement are unclear or ambiguous, such terms
and conditions are to be construed so as to be consistent with the
background and objectives set forth in this
Article 1 .
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2.
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DEFINITIONS AND
DOCUMENTS
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2.1
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Definitions .
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As
used in this Agreement:
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(1)
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“ ABM Data ”
shall mean any data or information of ABM or any Eligible Recipient
that is provided to or obtained by Supplier in connection with the
negotiation and execution of this Agreement or the performance of
its obligations under this Agreement, including data and
information with respect to the businesses, customer, operations,
facilities, products, rates, regulatory compliance, competitors,
consumer markets, assets, expenditures, mergers, acquisitions,
divestitures, billings, collections, revenues and finances of ABM
or any Eligible Recipient. ABM Data also shall mean any data or
information of ABM or an Eligible Recipient (i) created,
generated, collected or processed by Supplier in the performance of
its obligations under this Agreement, including data processing
input and output, asset information, Reports, third party service
and product agreements of ABM or an Eligible Recipient, retained
expenses and Pass-Through Expenses or (ii) that resides in or
is accessed through Software, Equipment or Systems provided,
operated, supported, or used by Supplier in connection with the
Services, as well as information derived from this data and
information. ABM Data shall not include any Supplier Proprietary
Information.
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(2)
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“ ABM Facilities
” means the facilities listed in
Schedule O.1 provided by ABM or the Eligible
Recipient for the use of Supplier to the extent necessary to
provide the Services.
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(3)
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“ ABM Owned Materials
” shall have the meaning given in
Section 14.1(a) .
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(4)
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“ ABM Owned Software
” means Software owned by ABM or an ABM Affiliate or an
Eligible Recipient and used, operated, maintained or supported by
Supplier or a Subcontractor under or in connection with this
Agreement.
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(5)
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“ ABM Personal Data
” shall mean that portion of ABM Data that is subject to any
Privacy Laws.
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(6)
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“ ABM Contract Manager
” shall have the meaning given in
Section 10.1 .
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(7)
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“ ABM Personnel ”
shall mean the employees, agents, contractors or representatives of
ABM employed by ABM or its Affiliates or Eligible Recipients as of
the Effective Date who performed, in the ordinary course of
business, any of the services to be provided by Supplier during the
twelve (12) months preceding the Commencement Date.
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(8)
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“ ABM Sites ” or
“ Sites ” shall mean the offices or other
facilities listed on Schedule O.5 at or to which
Supplier is to provide the Services.
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ABM/IBM Proprietary
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Page 2 of 126
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(9)
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“ ABM Third Party
Contractors ” shall have the meaning given in
Section 4.4(a) .
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(10)
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“ Acceptance ”
shall mean the determination, in ABM’s reasonable discretion,
and in accordance with the Policy and Procedures Manual or other
criteria agreed to by the Parties, following implementation,
installation, testing and execution in the production environment
for an agreed upon number of business cycles that Software,
Equipment, Systems and/or other contract deliverables are in
Compliance in all material respects with the
Specifications.
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(11)
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“ Additional Resource
Charge ” or “ ARC ” is the charge per
Resource Unit that is applicable whenever the actual consumption of
a Resource Unit by the Eligible Recipients exceeds the Resource
Baseline set forth in Schedule J . The total
additional charges will be calculated by multiplying the Additional
Resource Charge by the number of Resource Units in excess of the
Resource Baseline actually consumed by the Eligible
Recipients.
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(12)
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“ Affected Employees
” means the individuals identified in
Schedule M .
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(13)
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“ Affiliate ”
shall mean, generally, with respect to any Entity, any other Entity
Controlling, Controlled by or under common Control with such
Entity.
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(14)
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“ Agreement ”
shall have the meaning given in the Preamble.
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(15)
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“ Allocation of Pool
Percentage ” means for a particular Critical Performance
Indicator, the portion of At Risk Amount allocated to such Critical
Performance Indicator and used to calculate the Service Level
Credit payable to ABM in the event of a Service Level Default in
such Critical Performance Indicator. In no event shall the sum of
all Allocations of Pool Percentage exceed one hundred percent
(100%).
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(16)
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“ Antivirus Software
” means all software programs and programming (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) that are used to monitor for,
filter and detect the presence of Malicious Code and repair or
remediate the effects of Malicious Code to the extent a Party has
financial or operational responsibility for such programs or
programming under Schedule J.1 . Antivirus
Software shall include all such programs or programming in use as
of the Effective Date (i) that are set forth in Schedule
A , or (ii) as to which Supplier received reasonable
notice and/or reasonable access prior to the Effective Date.
Antivirus Software also shall include all such programs or
programming selected on or after the Effective Date to the extent a
Party has financial or operational responsibility for such programs
or programming under Schedule J.1 .
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(17)
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“ Applications Software
” or “ Applications ” shall mean
those software application programs and programming (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) used to support day-to-day
business operations and accomplish specific business objectives to
the extent a Party has financial or operational responsibility for
such programs or programming under Schedule J.1
. Applications Software shall include all such programs or
programming in use as of the Effective Date (i) that are set
forth in Schedule A , or (ii) as to which
Supplier received notice and/or access prior to the Effective Date.
Applications Software also shall include all such programs or
programming developed and/or introduced on or after the Effective
Date to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 .
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(18)
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“ Asset Management
Software ” means all software programs and programming
(and all modifications, replacements, Upgrades, enhancements,
documentation, materials and media related thereto) that are used
to record, track and report information required to manage asset
inventories to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 . Asset Management Software shall
include all such programs or programming in use as of the Effective
Date, (i) that are set forth in Schedule A
, or (ii) as to
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which Supplier received reasonable
notice and/or reasonable access prior to the Effective Date. Asset
Management Software also shall include all such programs or
programming selected on or after the Effective Date to the extent a
Party has financial or operational responsibility for such programs
or programming under Schedule J.1 .
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(19)
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“ At Risk Amount
” means, for any month during the Term, an amount, expressed
as a percentage of the Monthly Charges, which is the maximum amount
that the Supplier will have at risk for Service Level Credits. The
At Risk Amount shall be 10% of the Monthly Charges.
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(20)
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“ Authorized User
” means (i) all Eligible Recipients and their respective
employees, contractors, subcontractors, customers, agents and
representatives (other than Supplier and its Subcontractors), and
(ii) other persons or Entities designated by ABM to receive or
use the Systems or Services provided by Supplier.
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(21)
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“ Baseline FTE Project
Hours ” and “ Baseline FTE Project Dollars
” shall have the meaning given in
Section 11.8(a) .
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(22)
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“ Benchmark Standard
” has the meaning given in
Section 11.11(d) .
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(23)
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“ Benchmarker ”
has the meaning given in Section 11.11(a)
.
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(24)
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“ Benchmarking ”
has the meaning given in Section 11.11(a)
.
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(25)
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Reserved.
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(26)
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“ Change Management
” means the processes and procedures relating to managing,
planning and performing all System Changes pertaining to the
Services, including System Changes to individual components, and
the coordination of such changes across all components as set forth
in Schedule E and the Policy and Procedures
Manual. Change Management will support and include checkpoints to
ensure that System Changes may be implemented in accordance with
the Change Control Procedures.
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(27)
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“ Charges ” means
the amounts set forth in this Agreement, including in
Article 11 and Schedule J ,
as charges for the Services, excluding Pass-Through Expenses,
Service Taxes and ABM retained expenses.
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(28)
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“ Commencement Date
” shall mean October 1, 2006, or such other date as the
Parties may agree upon in writing as the date on which Supplier
will assume full responsibility for the Services.
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(29)
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“ Compiler ”
means all software programs and programming (and all modifications,
replacements, Upgrades, enhancements, documentation, materials and
media related thereto) that are used to compile source code to
executable code (e.g., C++, ADA, Cobol, JAVA, Fortran) to the
extent a Party has financial or operational responsibility for such
programs or programming under Schedule J.1 .
Compiler shall include all such programs or programming in use as
of the Effective Date, (i) that are set forth in
Schedule A , or (ii) as to which Supplier
received notice and/or access prior to the Effective Date. Compiler
also shall include all such programs or programming selected on or
after the Effective Date to the extent a Party has financial or
operational responsibility for such programs or programming under
Schedule J.1 .
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(30)
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“ Compliance ”
and “ Comply ” shall mean, with respect to
Software, Equipment, Systems or other contract deliverables to be
implemented, designed, developed, delivered, integrated, installed
and/or tested by Supplier, compliance in all material respects with
the Specifications.
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(31)
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“ Contract Year ”
means, for the first Contract Year, a period commencing on the
Commencement Date and ending on October 31, 2006, and, for
each ensuing Contract Year, a twelve (12) month
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period commencing on November 1 and
ending on October 31 (or, if earlier, on the last day of the
Term). If any Contract Year 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.
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(32)
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“ Control ” and
its derivatives shall mean: (a) the legal, beneficial, or
equitable ownership, directly or indirectly, of (i) at least
50% of the aggregate of all voting equity interests in an Entity or
(ii) equity interests having the right to at least 50% of the
profits of an Entity or, in the event of dissolution, to at least
50% of the assets of an Entity; (b) the right to appoint,
directly or indirectly, a majority of the board of directors;
(c) the right to control, directly or indirectly, the
management or direction of the Entity by contract or corporate
governance document; or (d) in the case of a partnership, the
holding by an Entity (or one of its Affiliates) of the position of
sole general partner.
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(33)
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“ Critical Deliverable
” shall have the meaning given in
Schedule G .
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(34)
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“ Critical Performance
Indicator(s )” or “ CPI ” shall have
the meaning given in Schedule G .
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(35)
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“Database Software
” means all
software programs and programming (and all modifications,
replacements, Upgrades, enhancements, documentation, materials and
media related thereto) that are used to deliver database services
to the enterprise to the extent a Party has financial or
operational responsibility for such programs or programming under
Schedule J.1 . Database Software includes
database engines such as Sybase, Oracle, DB2. SQL Server and
associated modules (e.g., form builders, report generators, and
backup software) and the tools used to manage and monitor
performance of the database. Database Software shall include all
such programs or programming in use as of the Effective Date,
(i) that are set forth in Schedule A , or
(ii) as to which Supplier received notice and/or access prior
to the Effective Date. Database Software also shall include all
such programs or programming developed and/or introduced on or
after the Effective Date to the extent a Party has financial or
operational responsibility for such programs or programming under
Schedule J.1 .
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(36)
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“ Deliverable ”
means a Developed Material that is identified as a deliverable in
the Agreement, or in a statement of work, project plan, or other
writing by or between the Parties.
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(37)
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“ Deliverable Credits
” means the monetary amount(s) that Supplier shall pay to ABM
(or apply against monthly Charges) if Supplier fails to meet its
obligations with respect to a Critical Deliverable, as further
described in Section 7.2(b) and Schedules
G and H .
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(38)
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“ Derivative Work
” means a work based on one or more preexisting works,
including a condensation, transformation, translation,
modification, expansion, or adaptation, that, if prepared without
authorization of the owner of the copyright of such preexisting
work, would constitute a copyright infringement under applicable
Law, but excluding the preexisting work.
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(39)
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“ Developed Materials
” shall mean any Materials (including Software), or any
modifications, enhancements or Derivative Works thereof, developed
by or on behalf of Supplier for ABM or the Eligible Recipients in
connection with or as part of the Services.
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(40)
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“ Development Tool
” means all software programs and programming (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) that are used in the
development, testing, deployment and maintenance of Applications to
the extent a Party has financial or operational responsibility for
such programs or programming under Schedule J.1
. Development Tools shall include all such products in use as of
the Effective Date, (i) that are set forth in
Schedule A , or (ii) as to which Supplier
received notice and/or access prior to the Effective Date.
Development Tools also shall include all such products selected
and/or
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developed on or after the Effective
Date to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 .
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(41)
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“ Direct Supplier
Competitors” shall mean the Entities identified in
Schedule P.2 , as such list of Entities may be
modified by Supplier from time to time, provided, however, that
such list shall at no time exceed twenty (20) Entities unless
otherwise agreed by the Parties.
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(42)
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“ Direct ABM
Competitors ” shall mean the Entities identified in
Schedule P.1 , as well as their Affiliates,
successors and assigns, as such list of Entities may reasonably be
modified by ABM from time to time.
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(43)
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“ Effective Date
” shall have the meaning given in the preamble to this
Agreement.
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(44)
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“ Eligible Recipients
” means, collectively, the following:
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(a)
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ABM;
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(b)
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any
Entity that is an Affiliate of ABM on the Commencement Date, or
thereafter becomes an Affiliate of ABM;
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(c)
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any
Entity that purchases after the Commencement Date from ABM or any
Affiliate of ABM, all or substantially all of the assets of ABM or
such Affiliate, or of any division, marketing unit or business unit
thereof, provided that such Entity agrees in writing to be bound by
the terms and conditions of this Agreement;
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(d)
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any
Entity that after the Effective Date is created using assets of ABM
or any Affiliate of ABM, provided that such Entity agrees in
writing to be bound by the terms and conditions of this
Agreement;
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(e)
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any
Entity into which ABM or any Affiliate of ABM merges or
consolidates, provided that such Entity has assumed ABM’s
obligations under this Agreement, and provided further that such
Entity agrees in writing to be bound by the terms and conditions of
this Agreement;
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(f)
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any
Entity which merges into or consolidates with ABM or any Affiliate
of ABM;
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(g)
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any
Entity, including any corporation, joint venture, partnership or
manufacturing or retail facility, in which on or after the
Commencement Date, ABM or any Affiliate of ABM has an ownership
interest and as to which ABM or such Affiliate has management or
operational responsibility;
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(h)
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subject to
Section 11.1(e)(iii) , any person or Entity
engaged in the provision of products or services to ABM or an
Eligible Recipient identified in clauses
(a) through (g) (e.g., contract
personnel working at an ABM Site), but only in connection with the
provision of such products or services to ABM or such Eligible
Recipient;
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(i)
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subject to
Section 11.1(e)(iii) , any customer of an
Eligible Recipient identified in clauses (a) through
(g) above, or an Entity to which such an Eligible Recipient is
a subcontractor, but only in connection with the provision of
products or services (other than the Services provided hereunder)
by such Eligible Recipient to such customer; and
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(j)
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other entities to which the Parties
agree.
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Except as used in
Sections 17.1, 17.3, and 17.4 ,
Eligible Recipients shall include the employees, contractors,
subcontractors, agents and representatives of the Entities
identified as Eligible Recipients above.
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As
used in the following Sections, the term “Eligible
Recipient(s)” shall not include the Eligible Recipient
categories described in Sections 2.1(44)(h) and
(i) :
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•
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Section 4.2(f);
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•
|
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Section 4.3(b)
(except
Section 4.3(b)(8) );
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•
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Section 5.4
(provided that the
failure to obtain a Required Consent with respect to the Eligible
Recipient categories described in Sections 2.1(44)(h)
and (i) may nonetheless impact the use and enjoyment of the
Services by ABM or other Eligible Recipients);
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•
|
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Section 6.1(c)
; and
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•
|
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Section 9.4(a)
.
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(45)
|
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“ Employment Effective
Date ” means, with respect to each Transitioned Employee,
the date that such Transitioned Employee begins employment with
Supplier, in accordance with applicable Laws.
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(46)
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“ Engineering Software
” means all software programs and programming (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) that are used to provide a
specific engineering function or service to the extent a Party has
financial or operational responsibility for such programs or
programming under Schedule J.1 . Engineering
Software shall include all such programs or programming in use as
of the Effective Date, (i) that are set forth in
Schedule A , or (ii) as to which Supplier
received reasonable notice and/or reasonable access prior to the
Effective Date. Engineering Software also shall include all such
programs or programming developed and/or introduced on or after the
Effective Date to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 .
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(47)
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“ Entity ” means
a corporation, partnership, joint venture, trust, limited liability
company, association or other organization or entity.
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(48)
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“ Equipment ”
shall mean all computing, networking and communications equipment
procured, provided, operated, supported, or used by ABM, Supplier
or Authorized Users in connection with the Services, including
(i) mainframe, midrange, server and distributed computing
equipment and associated attachments, features, accessories,
peripheral devices, and cabling, (ii) personal computers,
laptop computers, terminals, workstations and personal data devices
and associated attachments, features, accessories, printers,
multi-functional printers, peripheral or network devices, and
cabling, and (iii) voice, data, video and wireless
telecommunications and network and monitoring equipment and
associated attachments, features, accessories, peripheral devices,
and cabling.
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(49)
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“ Equipment Leases
” means all leasing arrangements whereby ABM, an Eligible
Recipient or an ABM Third Party Contractor leases Equipment as of
the Commencement Date which will be used by Supplier to perform the
Services after such Commencement Date. Equipment Leases include
those leases identified on Schedule F.2 , and
all other leases as to which Supplier received notice and/or access
prior to the Effective Date.
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(50)
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“ Event of Loss ”
shall have the meaning set forth in Section 16.2
.
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(51)
|
|
“ Extraordinary Event
” shall have the meaning given in
Section 11.6(a).
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(52)
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“ Full Time Equivalent
” or “ FTE ” is a level of effort (whether
by one person or more than one person), excluding vacation,
holidays, training, administration and other non-productive time
(but including a reasonable amount of additional work outside
normal business hours), equivalent to that which would be provided
by one person working full time for one year. Unless otherwise
agreed, one dedicated FTE is assumed to be at least 1,880
productive hours per Contract Year, and each non-dedicated FTE
shall be deemed to be a fraction of an FTE equal to the number of
productive hours worked by such non-dedicated FTE in a Contract
Year divided by 1,880. Without ABM’s prior written approval,
one (1) dedicated individual’s total work effort cannot
amount to more than one FTE.
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(53)
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“ Functional Service
Area ” means each of the areas defined in
Schedule E in which Supplier will provide
Services, (i.e., ).
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(54)
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“ Hazardous Materials
” means an element, compound, chemical mixture, contaminant,
pollutant, waste or other substance which is defined as hazardous
or toxic under any applicable Law or the release of which is
prohibited or restricted under any applicable Law.
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(55)
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“ Include ” and
its derivatives shall mean “including without
limitation.” This term is as defined, whether or not
capitalized in this Agreement.
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(56)
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“ Increased Impact Service
Level ” shall have the meaning given in Schedule
G.
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(57)
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“ Increased Impact Service
Level Default ” means the Supplier’s level of
performance for a particular Service Level fails to meet the
applicable Increased Impact Service Level at any time during the
measurement period.
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(58)
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“ Income Tax ”
means any tax on or measured by the net income of a Party
(including taxes on capital or net worth that are imposed as an
alternative to a tax based on net or gross income), or taxes which
are of the nature of excess profits tax, minimum tax on tax
preferences, alternative minimum tax, accumulated earnings tax,
personal holding company tax, capital gains tax or franchise tax
for the privilege of doing business.
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(59)
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“ Initial Term ”
shall have the meaning set forth in Section 3.1
.
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(60)
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“ ITS Systems Life
Cycle” means the comprehensive IT/IS documentation
maintained by ABM, including operating manuals, user guides,
specifications, methodologies, policies/procedures and disaster
recovery plans.
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(61)
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“ Key Performance
Indicator(s )” or “K PI ” shall have
the meaning given in Schedule G .
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(62)
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“ Key Supplier
Personnel ” shall mean the Supplier Personnel filling the
positions designated in Schedule C as Key
Supplier Personnel.
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(63)
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“ LAN Software ”
means all software programs and programming (and all modifications,
replacements, Upgrades, enhancements, documentation, materials and
media related thereto) that are used to operate, manage or monitor
a LAN or maintain active status on a LAN port to the extent a Party
has financial or operational responsibility for such programs or
programming under Schedule J.1 . LAN Software
shall include all such programs or programming in use as of the
Effective Date, (i) that are set forth in
Schedule A , or (ii) as to which Supplier
received reasonable notice and/or reasonable access prior to the
Effective Date. LAN Software also shall include all such programs
or programming developed and/or introduced on or after the
Effective Date to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 .
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(64)
|
|
“ Laws ” shall
mean all federal, state and local laws, statutes, 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 or self regulatory organization (“ SRO
”), in any jurisdiction in which the Services are provided or
received, including the United States Securities and Exchange
Commission and the Public Company Accounting Oversight Board and
the Laws relating to data privacy, trans-border data flow or data
protection (“ Privacy Laws ”). Subject to
Section 15.10 , Laws shall include generally
accepted accounting principles (“ GAAP ”),
applied in accordance with SAS-69, as such principles may be
modified during the Term by the Public Company Accounting Oversight
Board or other applicable authorities.
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(65)
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|
“ Local Area Networks
” or “ LANs ” shall mean the local,
high-speed networks, consisting of Equipment, Software, Systems,
telecommunications facilities, lines, interconnect devices and
cabling, that are used to create, connect and transmit data, voice
and video signals to, within or among ABM’s local area
network segments. Local Area Networks interconnect Authorized User
workstations, local servers, and printers and may connect with
WANs. Local Area Networks shall include all LANs in use as of the
Commencement Date, all LANs created by or for ABM, the Eligible
Recipients or Supplier following the Commencement Date and all
additions, modifications, substitutions, upgrades or enhancements
to existing and future LANs.
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(66)
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|
“ Losses ” shall
mean all losses, liabilities, damages, fines, penalties,
settlements, judgments, and interest (including taxes) arising out
of a third party claim against a Party or indemnitee, in each case
that a court finally awards to a third party or which are included
in the amount of any settlement paid to a third party and agreed to
by the Party financially responsible for such settlement, and all
related costs and expenses (including reasonable legal fees,
disbursements and costs of investigation and litigation) as
incurred.
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(67)
|
|
“ Major Release ”
means a new version of Software that includes changes to the
architecture and/or adds new features and functionality in addition
to the original functional characteristics of the preceding
software release. These releases are usually identified by full
integer changes in the numbering, such as from “7.0” to
“8.0,” but may be identified by the industry as a major
release without the accompanying integer change.
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(68)
|
|
“ Malicious Code
” shall mean (i) any code, program, or sub-program whose
knowing or intended purpose is to damage or maliciously interfere
with the operation of the computer system containing the code,
program or sub-program, or to halt, disable or maliciously
interfere with the operation of the Software, code, program, or
sub-program, itself, or (ii) any device, method, or token that
permits any person to circumvent the normal security of the
Software or the system containing the code.
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(69)
|
|
“ MAN Software ”
means all software programs and programming (and all modifications,
replacements, Upgrades, enhancements, documentation, materials and
media related thereto) that are used to operate, manage or monitor
Metropolitan Area Networks (including campus area networks) or
provide or maintain connectivity throughout a Metropolitan Area
Network (or campus area network) to the extent a Party has
financial or operational responsibility for such programs or
programming under Schedule J.1 . MAN Software shall
include all such programs or programming in use or required to be
used as of the Effective Date, including those set forth in
Schedule A , and those as to which Supplier received
reasonable notice and/or access prior to the Effective Date. MAN
Software also includes all such programs or programming developed
and/or introduced by or for ABM on or after the Effective Date to
the extent a Party has financial or operational responsibility for
such programs or programming under Schedule J.1
.
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(70)
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“ Managed Third Parties
” shall mean the ABM Third Party Contractors listed on
Schedule K and any substitute or replacement
third party contractors reasonably designated by ABM, and shall
include Fully Managed Third Parties and General Managed Third
Parties, as defined in Section
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6.11 . The Parties acknowledge and agree
that, to the extent ABM has Software license and/or maintenance
contracts with International Business Machines Corporation and such
contracts are listed on Schedule K ,
International Business Machines Corporation shall be treated as a
Managed Third Party for purposes of such contracts.
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(71)
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“ Management Tools
” means all software products and tools (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) that are used by Supplier to
deliver and manage the Services. Management Tools shall include all
such products or tools in use as of the Effective Date,
(i) that are set forth in Schedule A , or
(ii) as to which Supplier otherwise received notice and/or
access prior to the Effective Date. Management Tools also shall
include all such software products and tools selected and/or
developed on or after the Effective Date to the extent a Party has
financial or operational responsibility for such programs or
programming under Schedule J.1 .
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(72)
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“ Materials ”
shall mean, collectively, Software, literary works, other works of
authorship, documented specifications, designs, analyses,
processes, methodologies, programs, program listings, programming
tools, documentation, reports, drawings, databases, spreadsheets,
financial models and work product.
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(73)
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“ Metropolitan Area
Networks ” or “ MANs ” means the
regional or campus, high-speed networks, consisting of Equipment,
Software, Systems, telecommunications facilities, lines,
interconnect devices and cabling, that are used to create, bundle,
connect and transmit data, voice and video signals to, between or
among 1) ABM’s or Eligible Recipients’ office buildings
located within a campus or single metropolitan area, 2) LANs, and
3) WANs. Metropolitan Area Networks include all MANs in use or
required to be used as of the Effective Date, all MANs created by
or for ABM, the Eligible Recipients or Supplier following the
Effective Date and all additions, modifications, substitutions,
upgrades or enhancements to existing or future MANs.
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(74)
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“ Minimum Service Level
” shall have the meaning given in
Schedule G.
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(75)
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|
“ Minimum Service Level
Default ” means the Supplier’s level of performance
for a particular Service Level fails to meet the applicable Minimum
Service Level at any time during the measurement period.
|
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(76)
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“ Minor Release ”
means a scheduled release containing small functionality updates
and/or accumulated resolutions to defects or non-conformances made
available since the immediately preceding release (whether Major
Release or Minor Release). Minor Releases shall include
“Maintenance Releases” which are supplemental to and
made available between Major Releases and other Minor Releases,
issued and provided under specific vendor service level or
maintenance obligations and contain only accumulated resolutions or
mandated changes. These releases are usually identified by a change
in the decimal numbering of a release, such as “ 7.12
” to “ 7.13 .”
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(77)
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“ Monitoring Software
” shall mean all software programs and programming (and all
modifications, replacements, upgrades, enhancements, documentation,
materials and media related thereto) that are used to monitor and
report on IT assets (e.g., software, computers, systems, networks,
network devices or elements, circuits) to the extent a Party has
financial or operational responsibility for such programs or
programming under Schedule J.1 . Monitoring
Software shall include all such software programs or programming in
use as of the Effective Date, (i) that are set forth in
Schedule A , or (ii) as to which Supplier
received reasonable notice and/or reasonable access prior to the
Effective Date. Monitoring Software also shall include all programs
or programming developed and/or introduced on or after the
Effective Date to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 .
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ABM/IBM Proprietary
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Page 10 of 126
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(78)
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“ Monthly Base Charge
” means the total Supplier price set forth in Schedule
J associated with the performance of the Services in a
given month in accordance with the Resource Baselines, Service
Levels and Supplier responsibilities under this Agreement
(excluding ARCs and RRCs).
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(79)
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“ Network Software
” means all software programs and programming (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) that are used to deliver and
manage Services over networks to the extent a Party has financial
or operational responsibility for such programs or programming
under Schedule J.1 . Network Software shall
include all such programs or programming in use as of the Effective
Date, (i) that are set forth in Schedule A
, or (ii) as to which Supplier received reasonable notice
and/or reasonable access prior to the Effective Date. Network
Software also shall include all such programs or programming
developed and/or introduced on or after the Effective Date to the
extent a Party has financial or operational responsibility for such
programs or programming under Schedule J.1
.
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(80)
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“ New Advances ”
shall have the meaning given in Section 11.7(c)
.
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(81)
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|
“ New Services ”
means services provided by Supplier to ABM that impose materially
different obligations on Supplier and that require materially
different levels of effort, resources or expense from Supplier and
for which there is no current Resource Baseline or charging
methodology.
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(82)
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“ Noncompliance ”
shall mean, with respect to Software, Equipment, Systems or other
contract deliverables to be implemented, designed, developed,
delivered, integrated, installed and/or tested by Supplier, any
failure to comply in all material respects with the
Specifications.
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(83)
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“ Office Image ”
means all office automation programs and programming (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) installed on Authorized User
workstations, including office productivity, word processing,
spreadsheet, presentation, messaging, calendaring, middleware and
menu systems, and associated Systems Software. The Office Image
shall include all such programs or programming in use as of the
Effective Date, (i) that are set forth in
Schedule A , or (ii) as to which Supplier
otherwise received notice and/or access prior to the Effective
Date. The Office Image also shall include all such programs or
programming selected on or after the Effective Date to the extent a
Party has financial or operational responsibility for such programs
or programming under Schedule J.1 .
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(84)
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“ Operating System
Software ” means all software programs and programming
(and all modifications, replacements, Upgrades, enhancements,
documentation, materials and media related thereto) that are used
to deliver and manage Services on a particular hardware platform
including operating systems (e.g., UNIX, Windows 2000, VM and MVS)
and network operating systems (e.g., NT Server, Windows 2000 and
Novell) to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 . Operating System Software shall
include all such programs or programming in use as of the Effective
Date, (i) that are set forth in Schedule A , or
(ii) as to which Supplier otherwise received notice and/or
access prior to the Effective Date. Operating System Software also
shall include all such programs or programming developed and/or
introduced after the Effective Date to the extent a Party has
financial or operational responsibility for such programs or
programming under Schedule J.1 .
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(85)
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“ Out-of-Pocket
Expenses ” shall mean reasonable and actual out-of-pocket
expenses incurred by Supplier that are approved in advance by ABM
and for which Supplier is entitled to be reimbursed by ABM under
this Agreement. Out-of-Pocket Expenses shall not include
Supplier’s overhead costs (or allocations thereof), general
and/or administrative expenses or other mark-ups and shall be net
of all rebates and allowances.
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ABM/IBM Proprietary
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Page 11 of 126
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(86)
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|
“ Pass-Through Expenses
” shall mean the expenses listed in
Schedule J for which ABM has agreed in advance
to be financially responsible, in accordance with
Article 11 of this Agreement, following
processing and review of the third party invoice by Supplier for
accuracy. All Services to be performed by Supplier with respect to
Pass-Through Expenses are included in the Monthly Base Charges.
Supplier shall not charge any handling or administrative charge in
connection with its processing or review of such invoices without
ABM’s consent.
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(87)
|
|
“ Policy and Procedures
Manual ” shall have the meaning given in Section
9.1(a) .
|
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(88)
|
|
“ Prior Agreement
” shall mean the agreement between ABM Industries and
International Business Machines Corporation, dated
December 20, 2004, for telecommunication, network and VOIP
services.
|
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|
|
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|
(89)
|
|
“ Problem Management
” means the processes and procedures of tracking and managing
all problems arising in ABM’s information technology
(IT) or telecommunication environment or otherwise in
connection with the Services, and resolving those problems arising
from or related to the Services. Such process includes the
provision of information to ABM to allow ABM to resolve problems
that are not related to the Services.
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(90)
|
|
“ Problem Management
Software ” means all software programs and programming
(and all modifications, replacements, Upgrades, enhancements,
documentation, materials and media related thereto) that are used
to track and manage problems to the extent a Party has financial or
operational responsibility for such programs or programming under
Schedule J.1 . Problem Management Software shall
include all such programs or programming in use as of the Effective
Date, (i) that are set forth in Schedule A , or
(ii) as to which Supplier received reasonable notice and/or
reasonable access prior to the Effective Date. Problem Management
Software also shall include all such programs or programming
developed and/or introduced on or after the Effective Date to the
extent a Party has financial or operational responsibility for such
programs or programming under Schedule J.1
.
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(91)
|
|
“ Project ” shall
have the meaning given in Section 11.8(a)
.
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(92)
|
|
“ Proprietary
Information ” shall have the meaning given in
Section 13.3(a) .
|
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(93)
|
|
“ Quality Assurance
” means the actions, planned and performed, to provide
confidence that all business processes, Systems, Equipment,
Software and components that influence the quality of the Services
are working as expected, both individually and
collectively.
|
|
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|
|
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(94)
|
|
“ Reduced Resource
Credit ” or “ RRC ” is the credit per
Resource Unit that is applicable whenever the actual consumption of
a defined Resource Unit by the Eligible Recipients falls below the
Resource Baseline set forth in Schedule J . The
total credit will be calculated by multiplying the Reduced Resource
Credit by the number of Resource Units below the Resource Baseline
actually consumed by the Eligible Recipients.
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(95)
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|
“ Remote Management
Software ” means all software programs and programming
(and all modifications, replacements, Upgrades, enhancements,
documentation, materials and media related thereto) that are used
to control the operations of and manage from remote sites IT assets
(e.g., software, computers, systems, networks, network devices or
elements, circuits) to the extent a Party has financial or
operational responsibility for such programs or programming under
Schedule J.1 . Remote Management Software shall
include all such programs or programming in use as of the Effective
Date, (i) that are set forth in Schedule A
, or (ii) as to which Supplier received reasonable notice
and/or reasonable access prior to the Effective Date. Remote
Management Software also shall include all such programs or
programming developed and/or introduced on or after the Effective
Date to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 .
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ABM/IBM Proprietary
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Page 12 of 126
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(96)
|
|
“ Renewal Term ”
shall have the meaning set forth in Section 3.2
.
|
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(97)
|
|
“ Reports ” shall
have the meaning set forth in Section 9.2(a)
.
|
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(98)
|
|
“ Required Consents
” shall mean the consents (if any) required to be obtained:
(i) to assign or transfer to Supplier, or obtain for Supplier
the right to use and/or access, any ABM licensed Third Party
Software, Third Party Contracts or Equipment Leases or Acquired
Assets; (ii) to grant Supplier the right to use and/or access
the ABM licensed Third Party Software in connection with providing
the Services; (iii) to grant ABM and the Eligible Recipients
the right during the Term and any Termination Assistance Services
period to use and/or access the Supplier Owned Software, Third
Party Software and Equipment acquired, operated, supported or used
by Supplier in connection with providing the Services;
(iv) subject to Sections 6.4(c) ,
6.5(d) , and 6.6(c) , to assign or
transfer to ABM or its designee Supplier Owned Software, Third
Party Software, Third Party Contracts, Equipment leases or other
rights following the Term to the extent provided in this Agreement;
and (v) all other consents required from third parties in
connection with Supplier’s provision of the Services or
performance of its obligations hereunder.
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(99)
|
|
“ Resource Baselines
” shall mean the estimated number of Resource Units to be
required and/or consumed by ABM and the Eligible Recipients during
a defined period of time and included in the Monthly Base Charges.
The Resource Baselines as of the Effective Date are set forth in
Schedule J . The Resource Baselines will be
revised from time to time by agreement of the Parties based on the
business requirements of ABM and the Eligible Recipients and the
Monthly Base Charges will be adjusted accordingly.
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(100)
|
|
“ Resource Unit ”
(“ RU ”) means a particular unit of resource, as
described in Schedule J , which is measured to
determine ABM’s actual utilization of such resource compared
to the applicable Resource Baseline for purposes of calculating
“ Additional Resource Charges ” (“
ARCs ”) and “ Reduced Resource Credits
” (“ RRCs ”) as described in
Schedule J .
|
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(101)
|
|
“ Retained Systems and
Business Processes ” means those Systems and business
processes of ABM or an Eligible Recipient for which Supplier has
not assumed responsibility under this Agreement (including those
provided, managed, operated, supported and/or used on their behalf
by ABM Third Party Contractors). Retained Systems and Business
Processes include equipment and software associated with such
systems and business processes.
|
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(102)
|
|
“ Root Cause Analysis
” is the formal process, specified in the Policy and
Procedures Manual, to be used by Supplier to diagnose problems at
the lowest reasonable level so that corrective action can be taken
that will eliminate, to the extent reasonably possible, repeat
failures. Supplier shall implement a Root Cause Analysis as
specified in Section 7.3 or as reasonably
requested by ABM.
|
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(103)
|
|
“ Service Level
Credits” shall have the meaning given in
Section 7.2 and Schedule G .
|
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|
(104)
|
|
“ Service Level Default
” means a Minimum Service Level Default or an Increased
Impact Service Level Default.
|
|
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|
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|
|
(105)
|
|
“ Service Levels
” shall mean, individually and collectively, the performance
standards for the Services set forth in
Schedule G .
|
|
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|
|
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|
|
(106)
|
|
“ Service Taxes ”
shall mean all 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 ABM or the Eligible
Recipients from Supplier, excluding Income Taxes.
|
|
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|
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|
|
(107)
|
|
“ Services ”
means, collectively: (i) the services, functions and
responsibilities described in this Agreement as they may be
supplemented, enhanced, modified or replaced during the Term
in
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ABM/IBM Proprietary
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Page 13 of 126
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accordance with this Agreement;
(ii) the Transition Services; (iii) the Termination
Assistance Services; and (iv) any New Services and
Projects.
|
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|
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|
|
(108)
|
|
“ Software ”
shall mean all software programs and programming for which a Party
is financially or operationally responsible under
Schedule J.1 (and all modifications,
replacements, Upgrades, enhancements, documentation, materials and
media related thereto), including Applications, Antivirus Software,
Compilers, Database Software, Development Tools, MAN Software,
Management Tools, Monitoring Software, Network Software, Operating
System Software, Office Images, Problem Management Software, Remote
Management Software, Systems Software, Third Party Software and
Utilities, unless a more specific reference is required by the
context.
|
|
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(109)
|
|
“ Specialized Services
” shall have the meaning given in
Section 9.9 .
|
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(110)
|
|
“ Specifications
” shall mean, with respect to Software, Equipment, Systems or
other contract deliverables to be designed, developed, maintained,
modified, enhanced, delivered, integrated, installed and/or tested
by Supplier, the technical, design and/or functional specifications
set forth in Schedules E or H , in third party vendor
standard documentation, in a New Services or Project description
requested and/or approved by ABM or otherwise agreed upon in
writing by the Parties.
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(111)
|
|
“ Strategic Plan
” means the plans periodically developed by ABM that set
forth ABM’s key business objectives and requirements and
outline its strategies for achieving such objectives and
requirements. ABM may revise the Strategic Plan from time to time.
The Strategic Plan is likely to include both annual and multi-year
strategies, objectives and requirements.
|
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(112)
|
|
“ Subcontractors
” shall mean subcontractors (of any tier) of Supplier,
including Shared Subcontractors (as defined in
Section 9.12(b) ). The initial list of
Subcontractors approved by ABM is set forth on
Schedule D . Schedule D may
be amended during the Term in accordance with Section
9.12 .
|
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|
|
(113)
|
|
“ Supplier Account
Executive ” shall have the meaning given in Section
8.5 and shall describe the Supplier representative
responsible for both the day to day relationship with ABM as well
as the delivery of all Services to ABM.
|
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(114)
|
|
“ Supplier Facilities
” means, individually and collectively, the facilities owned,
leased or used by Supplier or its Affiliates or Subcontractors from
which any Services are provided or performed (other than Eligible
Recipient Facilities). Supplier Facilities are listed on
Schedule O.2 .
|
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|
(115)
|
|
“ Supplier Owned
Materials ” shall have the meaning given in Section
14.3(a) .
|
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|
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|
(116)
|
|
“ Supplier Owned
Software ” means any Software owned by Supplier or its
Affiliates and used to provide the Services.
|
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(117)
|
|
“ Supplier Personnel
” shall mean those employees, representatives, contractors,
subcontractors and agents of Supplier, Subcontractors and Supplier
Affiliates who perform any Services under this Agreement. Supplier
Personnel shall include Transitioned Employees.
|
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(118)
|
|
“ System ” shall
mean an interconnected grouping of manual or electronic processes,
including Equipment, Software and associated attachments, features,
accessories, peripherals and cabling, and all additions,
modifications, substitutions, Upgrades or enhancements to such
System, to the extent a Party has financial or operational
responsibility for such System or System components under
Schedule E or Schedule J.1 .
System shall include all Systems in use as of the Effective Date,
all additions, modifications, substitutions, Upgrades or
enhancements to such Systems and all Systems installed or developed
by or for ABM or Supplier following the Effective Date.
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ABM/IBM Proprietary
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Page 14 of 126
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(119)
|
|
“ System Change ”
means any change to the standards, processes, controls, Software,
Equipment, Systems or operating environment.
|
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(120)
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|
“ Systems Software
” shall mean all software programs and programming (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) that perform tasks basic to
the functioning of the Equipment and are required to operate the
Applications Software or otherwise support the provision of
Services by Supplier, including operating systems, systems
utilities, data security software, compilers, performance
monitoring and testing tools and database managers to the extent a
Party has financial or operational responsibility for such programs
or programming under Schedule J.1 . Systems
Software shall include all such programs or programming in use as
of the Effective Date, (i) that are set forth on
Schedule A , or (ii) as to which Supplier
otherwise received notice and/or access prior to the Effective
Date. Systems Software also shall include all such programs or
programming developed and/or introduced after the Effective Date to
the extent a Party has financial or operational responsibility for
such programs or programming under Schedule J.1
.
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(121)
|
|
“ Term ” shall
have the meaning given in Section 3.2
.
|
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(122)
|
|
“ Termination Assistance
Services ” means the termination/expiration assistance
requested by ABM to allow the Services to continue without
unnecessary interruption or adverse effect and to facilitate the
orderly transfer of the Services to ABM or its designee, as such
assistance is further described in Section 4.3
and Schedule I .
|
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|
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|
|
(123)
|
|
“ Termination Charge
” shall mean the termination charges payable by ABM upon
certain termination events, as set forth in
Schedule N . Termination Charges may include
Wind Down Costs and/or a Termination Fee.
|
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|
|
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|
|
(124)
|
|
“Termination Fee” shall
have the meaning given in Section 2(c) of Schedule N
.
|
|
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|
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|
|
(125)
|
|
“ Third Party Contracts
” shall mean all agreements between third parties and ABM or
an Eligible Recipient or between third parties and Supplier or its
Subcontractors or Affiliates that have been or will be used to
provide the Services, including those listed on
Schedule F.3 as to which Supplier will assume
financial and operational responsibility as of the Commencement
Date.
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|
(126)
|
|
“ Third Party Materials
” shall mean intellectual property or other Materials that
are owned by third parties and provided under license to Supplier
(or Supplier Affiliates or Subcontractors) or ABM (or Eligible
Recipients) and that have been or will be used or required to be
used to provide or receive the Services. Third Party Materials
include Materials owned by Subcontractors and used in the
performance of the Services.
|
|
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|
|
|
|
|
(127)
|
|
“ Third Party Software
” shall mean all Software products (and all modifications,
replacements, Upgrades, enhancements, documentation, materials and
media related thereto) that are provided under license or lease to
Supplier or ABM or an Eligible Recipient to the extent a Party has
financial or operational responsibility for such Software products
under Schedule J.1 . Third Party Software shall
include all such programs or programming in use as of the Effective
Date, (i) that are identified as such on
Schedule A and F.4 , or
(ii) as to which Supplier received notice and/or access prior
to the Effective Date. Third Party Software also shall include all
such programs or programming licensed and/or leased after the
Effective Date.
|
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|
|
(128)
|
|
“ Transition Milestone
” means each date identified on the Transition Plan as a
milestone by which Supplier shall have completed a certain task or
set of tasks in the Transition Plan in accordance with the
Transition Plan.
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ABM/IBM Proprietary
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Page 15 of 126
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(129)
|
|
“ Transition Period
” shall mean the period that commences on the Effective Date
and expires 12:00:01 a.m., Pacific Time, on the date specified
for the completion of the Transition Services as specified in the
Transition Plan, unless expressly extended in writing by
ABM.
|
|
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|
|
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|
|
(130)
|
|
“ Transition Plan
” means the plan set forth in Schedule H
and developed pursuant to Section 4.2 hereof,
which identifies all material transition tasks and deliverables to
be undertaken by Supplier in connection with the transition of all
Services to Supplier, the completion of all Transition Period
enhancement projects to be completed during the Transition Period,
and the dates by which each will be completed by
Supplier.
|
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|
|
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|
|
(131)
|
|
“ Transition Services
” shall mean the services, functions and responsibilities
described in Section 4.2 to be performed by
Supplier during the Transition Period.
|
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|
|
|
|
|
(132)
|
|
“ Transitioned
Employees ” means the employees of ABM who accept
Supplier’s offer of employment and become employed by
Supplier pursuant to Article 8 . Upon being
employed by Supplier, such Transitioned Employees shall be deemed
to be Supplier Personnel.
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(133)
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“ Upgrade ” and
its derivatives shall mean updates, renovations, enhancements,
additions and/or new versions or releases of Software or Equipment
by Supplier. Unless otherwise agreed, financial responsibility for
the costs, fees and expenses associated with an Upgrade of Software
or Equipment shall be allocated between the Parties in accordance
with Sections 6.4 and 6.5 and
Schedule J.1 .
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(134)
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“ Utilities ”
shall mean all software programs or programming (and all
modifications, replacements, Upgrades, enhancements, documentation,
materials and media related thereto) which, when used in
association with the Operating System Software, allow a Party to
manage, secure access, or make available access to the production
environment (e.g., tools for storage management, security, virus
protection, backup and restoration, software distribution and
license management) to the extent a Party has financial or
operational responsibility for such programs or programming under
Schedule J.1 . Utilities shall include all such
programs or programming in use as of the Effective Date,
(i) that are set forth in Schedule A , or
(ii) as to which Supplier received notice and/or access prior
to the Effective Date. Utilities also shall include all such
programs or programming developed and/or introduced on or after the
Effective Date to the extent a Party has financial or operational
responsibility for such programs or programming under
Schedule J.1 .
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(135)
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“ WAN Software ”
means all software programs and programming (and all modifications,
replacements, Upgrades, enhancements, documentation, materials and
media related thereto) that are used to operate, manage or monitor
the WAN or provide or maintain connectivity throughout the WAN to
the extent a Party has financial or operational responsibility for
such programs or programming under Schedule J.1
. WAN Software shall include all such programs or programming in
use as of the Effective Date, (i) that are set forth in
Schedule A , or (ii) as to which Supplier
received notice and/or access prior to the Effective Date. WAN
Software also shall include all such programs or programming
developed or introduced on or after the Effective Date to the
extent a Party has financial or operational responsibility for such
programs or programming under Schedule J.1
.
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(136)
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“ Wide Area Networks
” or “ WANs ” means long haul, high speed
backbone transmission Networks, consisting of Equipment, Software,
Systems, telecommunications facilities, lines, interconnect
devices, cabling, sonet rings, ATM, frame relay, leased lines and
other services as they become available, that are used to create,
connect and transmit data, voice and video signals to within,
between or among LANs and/or non-ABM locations that do business
with ABM and for which ABM is responsible for providing
connectivity. The WAN shall include all voice, data and video
(image) traffic to be routed over the WANs. Wide Area Networks
shall include all WANs in use as of the Commencement Date, all WANs
created by or for ABM or Supplier following the
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Page 16 of 126
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Commencement Date and all additions,
modifications, substitutions, upgrades or enhancements to existing
or future WANs.
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(137)
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“ Wind Down Costs
” shall mean the amounts described in Section 2(a) and
(b) of Schedule N .
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2.2
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Other Terms .
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The
terms defined in this Article include the plural as well as the
singular and the derivatives of such terms. Unless otherwise
expressly stated, the words “ herein ,” “
hereof ,” and “ hereunder ” and
other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section, Subsection or other
subdivision. Article, Section, Subsection and Attachment references
refer to articles, sections and subsections of, and attachments to,
this Agreement. The words “ include ” and
“ including ” shall not be construed as terms of
limitation. The words “ day ,” “
month ,” and “ year ” mean,
respectively, calendar day, calendar month and calendar year. As
stated in Section 21.3 , the word “
notice ” and “ notification ” and
their derivatives shall mean notice or notification in writing.
Other terms used in this Agreement are defined in the context in
which they are used and shall have the meanings there
indicated.
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2.3
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Associated Contract
Documents .
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This Agreement includes each of the
following schedules and their attached exhibits, all of which are
attached to this Agreement and incorporated into this Agreement by
this reference. Unless otherwise expressly stated, references to
specific Schedules include all numbered subsidiary Schedules (e.g.,
references to Schedule E include not only
Schedule E , but also Schedules E.1, E.2, E.3,
E.4 and E.5 ).
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A
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Software
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B
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Reserved
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C
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Key Supplier
Personnel
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D
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Subcontractors
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E
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Statement of
Work
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E.1
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Data Center and
Server Services
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E.2
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Network
Services
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E.3
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VIP and
Workstation Services
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E.4
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Help Desk
Services
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E.5
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Application
Maintenance Services
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F.1
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List of
Circuits
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F.2
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Equipment
Leases
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F.3
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Third Party
Contracts
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F.4
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Third Party
Software
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G
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Service
Levels
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H
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Transition
Plan
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I
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Termination
Assistance Services
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J
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Supplier
Charges
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J.1
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Financial
Responsibility/Asset Ownership Matrix
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K
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Managed Third
Parties
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L
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Projects
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L.1
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J.D. Edwards
Upgrade Project
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M
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Affected
Employees
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N
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Termination
Charges
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O.1
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ABM
Facilities
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O.2
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Supplier
Facilities
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O.3
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ABM Provided
Equipment
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O.4
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ABM
Rules
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O.5
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ABM
Sites
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P.1
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Direct ABM
Competitors
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P.2
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Direct Supplier
Competitors
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ABM/IBM Proprietary
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Page 17 of 126
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Q
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Satisfaction
Survey
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R
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Reports
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S
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Approved
Benchmarkers
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T
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Governance
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U
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Refresh
Schedule
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V
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Termination/Expiration Rights
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W
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Form of
Companion Agreement
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Exhibit 1:
Form of Non-Disclosure Agreement
Exhibit 2: Form of Invoice
Exhibit 3: Form of Bill of Sale
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3.
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TERM
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3.1
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Initial Term .
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The
initial Term of this Agreement shall commence as of
12:00:01 a.m., Pacific Time on the Effective Date and continue
until 11:59:59 p.m., Pacific Time, on December 31, 2013,
unless this Agreement is terminated as provided herein or extended
as provided in Section 3.2 or 4.3(a)(2)
, in which case the Term shall end at 11:59:59 p.m., Pacific
Time, on the effective date of such termination or the date to
which this Agreement is extended (the “ Initial Term
”).
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3.2
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Extension .
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By
giving notice to Supplier no less than ninety (90) days prior
to the expiration date of the Initial Term or any extension, ABM
shall have the right to extend the Term for up to two
(2) extension periods to be specified by ABM of up to one
(1) year (each, a “ Renewal Term ” and
together with the Initial Term, the “ Term ”),
each on the terms and conditions set forth in this Agreement.
Notwithstanding the foregoing, the time period between the
provision of ABM’s non-renewal notice to Supplier and
Supplier’s cessation of Termination Assistance Services shall
not be shorter than 180 days. No Termination Charges shall be
applicable to any termination on or after the expiration of the
Initial Term.
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4.
|
|
SERVICES
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4.1
|
|
Overview .
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(a)
|
|
Services . Commencing on the Commencement
Date, Supplier shall provide the Services to ABM, and, upon
ABM’s request, to Eligible Recipients designated by ABM. The
Services shall consist of the following, as they may evolve during
the Term of the Agreement or be supplemented, enhanced, modified or
replaced, in each case in accordance with the terms of this
Agreement:
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(i)
|
|
The
services, functions and responsibilities described in this
Agreement including its Schedules;
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(ii)
|
|
The
application management, telecommunication, IT infrastructure, help
desk, and information technology related services, functions and
responsibilities performed in the ordinary course of business
during the twelve (12) months preceding the Commencement Date
by ABM Personnel who were displaced or whose functions were
displaced as a result of this Agreement, even if the service,
function, or responsibility is not specifically described in this
Agreement (provided that, in the event of a direct conflict between
Schedule E and the scope of services as
described in this Section 4.1(a)(ii) , this
Section 4.1(a)(ii) shall not be construed as
altering and/or superseding Schedule E );
and
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(b)
|
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Included Services.
If any subtasks not
specifically described in this Agreement are an inherent or
necessary part of the Services described herein or are required for
proper performance of such
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Page 18 of 126
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Services, such subtasks shall be
deemed to be included within the scope of the Services to be
delivered for the Charges, as if such subtasks were specifically
described in this Agreement.
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(c)
|
|
Required Resources
. Except as otherwise
expressly provided in this Agreement, Supplier shall be responsible
for providing the facilities, personnel, Equipment, Software,
technical knowledge, expertise and other resources necessary to
provide the Services.
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(d)
|
|
Supplier Responsibility
. Supplier shall be
responsible for the provision of the Services in accordance with
this Agreement even if, by agreement of the Parties, such Services
are performed or dependent upon services performed by
(i) Subcontractors, (ii) Managed Third Parties to the
extent provided in Section 6.11 an | |