Exhibit 99.1
AMENDMENT #4
TO AGREEMENT FOR
BUSINESS PROCESS AND SUPPORT SERVICES
This AMENDMENT #4 (this
“ Amendment ”), dated as of December 12,
2007, is entered into by and between NiSource Corporate Services
Company, a Delaware corporation (“ NiSource ”),
and International Business Machines Corporation, a New York
corporation (“ IBM ”). This Amendment shall be
effective as of December 1, 2007 (the “ Amendment
Effective Date ”).
Recitals
A. WHEREAS, NiSource and IBM
(a) entered into an Agreement for Business Process and Support
Services dated as of June 20, 2005 (the “ Original
Agreement ”) and amended the Original Agreement pursuant
to Amendments #1 through 26 and (b) have created a conformed
version of the Original Agreement that reflects changes to the
Original Agreement implemented by Amendments #1 through #21 and
Amendments #24 and #26 (provided, however, that the letter
agreements as listed in Attachment J hereto, Change Orders
and Request for Service (“ RFS ”) documents are
not reflected within the body of such conformed version but remain
in full force and effect) (the “ Conformed Version of the
Agreement” ) . All references after the Amendment
Effective Date to the “Agreement” shall mean the
Conformed Version of the Agreement, as may be amended. For tracking
purposes after the Amendment Effective Date, Amendments #22, #23,
and #25 to the Original Agreement shall be renumbered and referred
to as Amendments #1, #2 and #3, respectively, and this Amendment
shall be hereafter referred to as Amendment #4.
B. WHEREAS, the Parties engaged
in a reassessment of the relationship formed by the Parties under
the Agreement, including the identification and evaluation of
(a) adjustment, enhancement and remediation activities to
address issues raised by the Parties with respect to the delivery
of certain Transformation projects and steady state Services under
the Agreement and (b) strategies for the best path forward for
NiSource and IBM and the resolution of disputes;
C. WHEREAS, the Parties entered into
a Memorandum of Understanding, dated as of October 22, 2007,
(the “ MOU ”) pursuant to which the Parties
agreed in principle to (a) the key business terms that would
be reflected in this Amendment and (b) certain binding terms
in order to allow NiSource and IBM to commence (i) transition
back activities for the scope to be terminated under this
Amendment, including communications and potentially offers of
employment to designated IBM personnel and possible engagement of
IBM contractors, and (ii) the implementation of the
adjustments, improvements and remediation activities relating to
the scope to be retained and performed by IBM; and
NiSource — IBM Amendment #4
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D. WHEREAS, the Parties have
agreed in this Amendment to formalize the agreement in principle
set forth in the MOU, including amending the Agreement to reflect
that (a) the Human Resources (“ HR ”)
Service Tower, the Sales Center Service Tower, the Finance and
Accounting (“ F&A ”) Service Tower (except
for completion and remediation activities relating to Wave 1 of the
F&A Transformation as set forth herein and ERS as set forth
herein), the Supply Chain Management (“ SCM ”)
Service Tower and the Meter-to-Cash (“ MTC ”)
Service Tower (except for certain offshore activities as described
in Section 7(d) below and the Revenue Recovery
Services as described in Section 7(e) below)
shall be terminated and transitioned back to NiSource or its
designee, (b) the Services under the Customer Contact Center
(“ CCC ”) Service Tower shall be provided by IBM
in accordance with the applicable Service Levels at a fixed price
on an interim basis until and if NiSource enters into a direct
agreement with, or takes assignment of IBM’s current
agreement with, IBM’s current subcontractors Vertex
Outsourcing LLC, a subsidiary of Vertex Data Science Limited
(“ Vertex ”), NCO Financial Systems, Inc.
(“ NCO ”) and Network Omni Multi-Lingual
Communications (“ Network Omni ”) for the
provision of certain CCC Services and such Services are fully
transitioned to Vertex, NCO and Network Omni as the primary
providers of such Services (provided that offshore non-call work
identified herein is not intended to be transitioned to Vertex and
shall continue to be provided by IBM), (c) IBM shall complete
the Wave 1 F&A Transformation completion and remediation
activities identified by the Parties, (d) IBM shall continue
to provide certain offshore activities for MTC after the transition
back to NiSource or its designee of the rest of MTC, (e) IBM
shall continue to provide certain offshore non-call work for CCC as
described in Section 3 (g) below after the end of the
fixed fee period referenced in subsection (b) above at the
charges agreed to herein and subject to the terms and conditions of
the Agreement, (f) IBM shall continue to provide the Services
under the IT Service Tower subject to certain adjustments and
enhancements to the IT Services (including the associated Fees) and
the implementation of certain remediation activities and
(g) certain settlement conditions have been agreed.
NOW, THEREFORE , in
consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:
Amendments
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Definitions; Attachments; Restated Schedules; Conformed
Version of the Agreement . |
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a. |
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Capitalized terms used but not defined in this Amendment shall
have the meaning given to such terms in the Agreement. |
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b. |
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The following Attachments attached to this Amendment supplement
and are in addition to the existing provisions and attachments to
the Agreement: |
NiSource — IBM Amendment #4
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Attachment
A
IT Terms
— Part 1
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Annex A-1-1 |
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Productivity Improvement
Percentages |
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Annex A-1-2 |
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Onshore/Offshore Ratios |
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Annex A-1-3 |
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Real Time Systems |
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Annex A-1-4 |
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Combined Countries for Turnover |
IT Terms
— Part 2
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Annex A-2-1 |
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Application Mapping Diagram |
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Annex A-2-2 |
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BA Process Map |
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Annex A-2-3 |
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BAM Mapping |
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Annex A-2-4 |
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IT Staffing Matrix |
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Annex A-2-5 |
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IBM Personnel with Logical
Access |
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Annex A-2-6 |
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Org Chart |
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Annex A-2-7 |
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Knowledge Transfer Methodology for
New Offshore Migrations of Software Applications |
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Annex A-2-8 |
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Offshore Migration Plan |
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Annex A-2-9 |
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Key Onshore Resources and Key
Offshore Resources |
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Annex A-2-10 |
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Request/Project Tracking Sample
Report |
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Annex A-2-11 |
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APM Categorization and
Recommendations |
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Annex A-2-12 |
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Project Communication Plan |
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Annex A-2-13 |
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AS, RTS AS and NS Vacancy Plans |
Attachment
B
RTS Specific
Terms – Part 1
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Annex B-1-1 |
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NS Coverage Model |
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Annex B-1-2 |
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NS Role Descriptions |
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Annex B-1-3 |
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Minimum RTS AS Headcount
Requirements |
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Annex B-1-4 |
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ENOC Mission and Escalation
Procedures |
RTS Specific
Terms – Part 2
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Annex B-2-1 |
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Draft RTS Termination SOW |
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Annex B-2-2 |
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RTS Termination SOW – Certain
Open Issues |
Attachment
C Resolution
of Materials and Supplies Disputes
NiSource — IBM Amendment #4
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Attachment D |
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Detail of Financial Agreement
Relating to Termination |
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Attachment E |
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Resolution of Disputed Items (Part
1 & Part 2) |
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Attachment F |
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Tentative Service Tower Transition
Plan and Dates |
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Attachment G |
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Intellectual Property
Rights |
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Attachment H |
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Matrix of Vertex/IBM/NI Equipment
Refresh and Maintenance Obligations |
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Attachment I |
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F&A Completion and
Remediation |
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Attachment J |
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Letter Agreements |
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Attachment K |
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BuySource Access |
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Attachment L |
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Release |
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Attachment M |
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MTC Credits |
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The foregoing Attachments
are hereby incorporated into and made part of this Amendment (and
accordingly the Agreement). |
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c. |
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The following Schedules and Exhibits are amended and restated
Exhibits and Schedules and replace the existing Schedules and
Exhibits to the Agreement of the same name in their entirety: |
Annex 3.2.6
(Service Levels)
Annex 3.3.6 (SLA Definitions)
Annex 4.1.6 (Resource Units)
Schedule 14.6 (Third Party Contracts)
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ii. |
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MTC – Schedule 22.5 (Transition) — Updating
for BSG/NIPSCO deletion |
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iii. |
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IT |
Annex 3.2.1
(Service Levels)
Annex 3.3.1 (SLA Definitions)
Annex 4.1.1 (IT Resource Units)
NiSource — IBM Amendment #4
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Schedule 4.2 (Pricing Tables)
Schedule 4.3 (Termination Matrix)
Schedule 6.1 (Service Categories)
Schedule 9.1 (Service Provider Service Delivery
Locations)
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Exhibit 12 |
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Equipment Assets |
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Exhibit 13 |
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Software Assets |
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Exhibit 14 |
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Third Party Contracts |
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Exhibit 26 |
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Technology Refresh |
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d. |
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The following Schedules are supplemental Schedules that are
only effective as set forth herein . |
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i. |
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CCC – Offshore Non-Call Services Only |
Schedule 2.6 A (SOW)
Annex 3.2.6A (Service Levels)
Annex 3.3.6A (SLA Definitions)
Annex 4.1.6A (Resource Units)
Schedule 14.6A (Third Party Contracts)
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ii. |
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MTC – Offshore Services Only |
Schedule 2.5A (SOW)
Annex 2.5.1A (SOX)
Annex 3.2.5A (Service Levels)
Annex 3.3.5A (SLA Definitions)
Annex 4.1.5A (Resource Units)
Annex 14.5A (Third Party Contracts)
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e. |
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In the event of any conflict or inconsistency between the terms
of this Amendment and the terms of the Schedules or the Exhibits
set forth above, the terms of this Amendment shall prevail. |
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f. |
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Simultaneously herewith, NiSource and IBM created the Conformed
Version of the Agreement (as defined above) . The intent of
the Conformed Version of the Agreement was solely to update and
create a new version of the Original Agreement that incorporated
all of the amendments implemented by Amendments #1 through #21
and |
NiSource — IBM Amendment #4
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Amendments #24 and #26 to the Original Agreement. In the event
of a conflict between the Conformed Version of the Agreement and
the Original Agreement and the Amendments included in the Conformed
Version of the Agreement, the Original Agreement and such
Amendments shall be the controlling documents and shall
prevail. |
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g. |
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All references after the Amendment Effective Date to the
“Agreement” shall mean the Conformed Version of the
Agreement, as may be amended. For tracking purposes after the
Amendment Effective Date, Amendments #22, #23, and #25 to the
Original Agreement shall be renumbered and referred to as
Amendments #1, #2 and #3, respectively, and this Amendment shall be
hereinafter referred to as Amendment #4. |
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h. |
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The letter agreements as listed in Attachment J hereto,
Change Orders and RFS documents are not reflected within the body
of the Conformed Version of the Agreement but remain in full force
and effect (but as to letter agreements, only to the extent
specified in Attachment J ). For the avoidance of doubt,
Attachment J hereto reflects all those letter agreements
that remain in effect and all those that are terminated. |
| 2. |
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Memorandum of Understanding . Upon the Amendment
Effective Date, the MOU shall terminate and be superseded by the
terms of this Amendment. |
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| 3. |
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Amendments applicable to CCC . |
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a. |
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As of the Amendment Effective Date and continuing for
12 months from the Amendment Effective Date unless terminated
earlier by NiSource upon three months’ notice to IBM or
extended by NiSource upon three months’ notice to IBM for up
to an additional three month period (the “ CCC Fixed
Period ”), IBM shall provide the Services that relate to
the CCC Service Tower in accordance with the Agreement, including
all of the Services that are set forth in Schedule 2.6
to the Agreement (the “ CCC Services ”) for the
fixed monthly fee for the CCC Services as set forth in
Schedule 4.2 to the Agreement (the “ CCC Fixed
Fee ”). The CCC Fixed Fee shall not be subject to ECA
adjustment. The CCC Fixed Fee as reflected in
Schedule 4.2 shall be invoiced monthly in accordance
with the payment terms set forth in the Agreement and reduced on an
equitable basis to reflect reduced scope if the Services are
transitioned away from IBM in phases and/or prorated if the
transition back is completed mid-month. During the CCC Fixed
Period, IBM shall provide the CCC Services in accordance with all
of the Service Levels applicable to the CCC Services as such
Service Levels are set forth in Schedule 3.2.6 ,
including the amended Service Levels applicable to CCC offshore
non-call work also defined and agreed in Schedule 3.2.6
. For the avoidance of doubt, NiSource shall not be obligated to
pay the MSC or |
NiSource — IBM Amendment #4
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any other amounts relating to the CCC Services, other than the
CCC Fixed Fee as applicable, during the CCC Fixed Period. Further,
for the avoidance of doubt, the services provided under
Amendment #3 (and the fees associated therewith) are in
addition to the foregoing in accordance with
Schedule 4.2 . |
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b. |
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It is the intent of the Parties for NiSource to enter into a
direct agreement with IBM’s current subcontractors Vertex,
NCO and Network Omni for the provision of the CCC Services, except
for the offshore non-call work identified herein (such Services to
be provided by Vertex, the “ Vertex CCC Scope
”). In the event that NiSource does not enter into an
agreement with Vertex and the Vertex CCC Scope is not fully
transitioned to Vertex prior to the end of the CCC Fixed Period,
the terms applicable to the CCC Service Tower shall revert to the
terms set forth in the Agreement applicable to the existing CCC
Service Tower prior to the commencement of the CCC Fixed Period;
provided, that, upon the reversion from the CCC Fixed Fee to the
pricing in Schedule 4.2 of the Agreement, the Fees
applicable to the CCC Service Tower shall be as set forth in
Schedule 4.2(B) of the Agreement, which includes
(i) a reduction to account for the elimination of CCC
Transformation-related charges from the MSC due to the termination
of the WSS/IVR Transformation responsibilities from
Schedule 23.2.6 (which for the avoidance of doubt are
now covered in Amendment 3) and (ii) the agreement by
the Parties to share in financial responsibility for the ARCs above
certain historical baselines. In the event NiSource does not enter
into a direct relationship with Vertex, at any time during the
24 month period following the CCC Fixed Period the Parties
agree that NiSource may terminate the CCC Services. |
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c. |
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If NiSource and Vertex enters into a direct agreement for the
Vertex CCC Scope: |
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i. |
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IBM shall continue to provide the services, software and assets
to Vertex in connection with providing Services to NiSource at no
charge to NiSource (or Vertex), as those services, software and
assets are set forth in Schedule 2.9 of the Agreement
for Business Process and Support Services between IBM and Vertex,
dated as of June 21, 2005, as amended by IBM and Vertex as of
October 24, 2007 (the “ IBM/Vertex Agreement
”); |
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ii. |
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IBM (or Vertex as IBM’s subcontractor for NiSource) shall
continue to provide at no additional charge to NiSource IVR
recording services, including onsite business support and IVR
prompt recordings in accordance with the description of |
NiSource — IBM Amendment #4
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services set forth in the amended IBM/Vertex Agreement as of
the Amendment Effective Date (unless further amendments are
otherwise approved by NiSource) . IBM shall ensure that
Vertex’s responsibilities under the IBM/Vertex Agreement
includes that Vertex is also responsible for changes and updates to
such recording services at no charge to IBM or NiSource, including
changes or updates (a) pursuant to Amendment #3 to the
Agreement or (b) as reasonably directed by NiSource. No change
to the IBM/Vertex Agreement dated or entered into on or after
October 22, 2007 (the “ MOU Effective Date
”) shall change the allocation or other responsibilities
between IBM and Vertex so as to increase IBM’s (and therefore
NiSource’s in the event of an assignment) financial
responsibility under the IBM/Vertex Agreement beyond that which
would have existed for IBM prior to the MOU Effective Date, unless
otherwise agreed by NiSource. |
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d. |
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For the avoidance of doubt, IBM shall have repair
responsibility for the Equipment (including servers) at Smithfield
at no additional charge to NiSource. Such Equipment shall not be
counted against the RU Baselines if and until such time as the
Vertex CCC Scope is transitioned directly to Vertex, at which time
the Parties shall increase, at no charge to NiSource, the
applicable RU Baselines to reflect any Equipment at such location
that is not already part of the RU Baselines. The equipment refresh
and maintenance obligations for the Vertex CCC Scope are as set
forth in Attachment H (Matrix of Vertex/IBM/NiSource Equipment
Refresh and Maintenance Obligations) , which IBM confirms are
consistent with the allocation of responsibilities under the
IBM/Vertex Agreement as of the MOU Effective Date. |
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e. |
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If NiSource and Vertex enter into a direct agreement for the
Vertex CCC Scope, IBM shall cooperate with the transition of
Services to Vertex in accordance with the Agreement so that
transition is seamless and does not result in any unplanned
disruption in services to NiSource and its end users. At no charge
to NiSource, IBM shall provide and allow Vertex to continue to use
all data, documentation, manuals, process flows and other materials
and information used in connection with the provision of the CCC
Services in accordance with Attachment G (Intellectual Property
Rights) . |
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f. |
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If NiSource enters into a direct agreement with Vertex,
NiSource shall terminate the Vertex CCC Scope from the Agreement
and the Parties shall enter into an amendment to the Agreement
reflecting such termination. In no event shall NiSource be
responsible for any termination or wind down |
NiSource — IBM Amendment #4
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fees (including Breakage, Balance Sheet Fees and Wind Down
Expenses) related to any such termination. In addition, all
references to fees and payments for the Vertex CCC Scope in the
Agreement and all further performance obligations with respect to
the Vertex CCC Scope shall be deleted from the Agreement and
neither NiSource nor IBM shall have any further obligations to pay
for or provide such Vertex CCC Scope (except for such fees and
obligations as may be applicable to Termination/Expiration
Assistance). |
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g. |
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Regardless of whether NiSource and Vertex enter into a direct
agreement for the Vertex CCC Scope, IBM shall continue to provide
the offshore non-call services described in the Agreement. After
the CCC Fixed Fee Period, if NiSource enters into a direct
relationship with Vertex, (i) the Parties agree to terminate
other existing Schedules applicable to the CCC Service Tower
pursuant to subsection (f) and (ii) IBM shall continue to
perform the offshore non-call work described in the Agreement,
including the Schedules that refer to “ CCC –
Offshore Non-Call Services Only” as set forth in
Section 1(d) above, subject to the terms and
conditions of the Agreement (the “ CCC Offshore Non-Call
Services ”). As reflected in the restated
Schedule 4.2 attached to this Amendment, IBM shall
provide the CCC Offshore Non-Call Services for the applicable MSC
(adjusted annually to reflect the application of ECA in accordance
with Schedule 4.1 ) (the “ CCC Offshore
Non-Call Fees ”). The CCC Offshore Non-Call Fees shall be
prorated so that they are applied as monthly fees (terminable if
the CCC Offshore Non-Call Services are terminated pursuant to the
terms of the Agreement). The CCC Offshore Non-Call Fees shall be
adjusted through ARCs/RRCs for resource usage above or below the RU
Baseline as defined in Schedule 4.2 . The Parties agree
that IBM shall not charge and NiSource shall not be responsible for
ARCs/RRCs for the period of July 2007 through
November 2007 for the “Non Call Work Units –
Onshore and Non Call Work Units – Offshore” Resource
Units and the “Transactions Handled by Web Service”
Resource Units and that the MSC paid to date is the only payment
applicable. |
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h. |
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As reflected in the restated Schedule 4.2 attached
to this Amendment, NiSource shall pay a fixed monthly fee which is
not subject to ECA adjustment for the process improvements
(referred to as “Business Process Transformation” in
Schedule 4.2 ) made by IBM during the Term to date,
including (i) improved scripting and process flow analysis to
lower overall call handle time, (ii) optimized CSR to
supervisor ratio processes and (iii) workforce management and
scheduling process improvements to reduce overall shrinkage and
improve schedule adherence. NiSource and IBM shall have the rights
in the process improvements as set forth in Attachment G
(Intellectual Property Rights) . |
NiSource — IBM Amendment #4
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i. |
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The Parties’ agreement with respect to the Web/IVR
Transformation projects are set forth in Amendment #3
(previously referred to as Amendment #25 to the Original
Agreement) (the “ Web/IVR Amendment ”). |
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j. |
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The following provisions relating to Web Self Service and IVR
are hereby agreed to by the Parties: |
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i. |
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IBM’s responsibility for the support of the CCC Project
Systems (as defined in the Web/IVR Amendment) shall be under the
CCC Service Tower (and the CCC Fixed Fee) for the duration of the
CCC Fixed Period and, at the end of the CCC Fixed Period, shall be
moved under the IT Service Tower, together with fees for such
services as set forth in Schedule 4.2 (which were
decreased in Schedule 4.2 to reflect a change in the
start date from the originally assumed July 1, 2008 to the
actual start date but increased to reflect the application of ECA),
payable over the remainder of the Term of the Agreement (the
“ Ongoing Web/IVR Fees ”), which amount
represents all amounts due and payable by NiSource for support and
refresh of the CCC Project Systems. The Ongoing Web/IVR Fees
include: server infrastructure (including repair and refresh), SOA
support (related to the Standalone CCC Projects (as defined in the
Web/IVR Amendment)), software licenses and maintenance (e.g.,
WebSphere and Genesys platforms) (including maintaining and being
financially responsible for software currency as provided in
Section 3.13 of the Agreement and ensuring, and being
financially responsible for, the currency of all maintenance
agreements) and IVR changes and reporting (e.g, WebSphere and
Genesys GVP upgrade and fixes), third party contract responsibility
as per Schedule 14.6 (Customer Contact Centers Third Party
Contracts) to the Agreement including vendor management,
program office and executive support. The Ongoing Web/IVR Fees do
not include the Applications Services support cost, which is
projected to be at the same level of support in hours that is
currently being charged and currently utilized by NiSource. The
Ongoing Web/IVR Fees include all fees for the Services relating to
the servers, including provision of the servers and support and
refresh thereof, at no additional charge to NiSource. In connection
therewith, IBM will increase all applicable Resource Baselines to
include the servers relating to the CCC Project Systems with no
increase to the Fees. |
NiSource — IBM Amendment #4
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ii. |
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Third party software licenses and maintenance agreements and
third party hardware and equipment leases and maintenance
agreements with respect to the CCC Project Systems shall be in
NiSource’s name and shall be managed by IBM and shall be Type
1 contracts under Exhibit 14 to the Agreement . |
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iii. |
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As part of the CCC Fixed Fee during the CCC Fixed Period, IBM
shall (1) promote the use of the WSS System (as described in
the Web/IVR Amendment) to NiSource customers calling into the
customer contact centers by customer service representatives
(“ CSRs ”) in accordance with the
Adoption/Promotion Plan as provided in Annex 23.2.6B to
Web/IVR Amendment, including using promotional scripting created by
IBM and approved by NiSource (with quality assurance monitoring),
and (2) provide CSR support to answer customer questions
regarding use of the WSS System. The number of CSRs providing such
support shall be sufficient to handle all such calls and meet all
requirements applicable to the customer contact center under the
Agreement, and IBM shall maintain an average speed to answer not to
exceed 60 seconds with respect to such calls (which has been added
as a Service Level to the Agreement). Such CSRs shall be trained to
assist customers with the WSS System functionality and its proper
use. IBM shall establish a separate 800 number and queue to direct
calls to such CSRs. The foregoing services in subsection
(2) above shall be provided with respect to all NiSource
customer calls, including customers of NiSource’s Bay State
and NIPSCO local distribution companies. |
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iv. |
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Subject to Section 6(g) and 6(i) of the Web/IVR Amendment IBM
shall provide the Telecommunications Services (as defined in the
Web/IVR Amendment) and NiSource shall be financially responsible
for Fees related to such Services. |
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v. |
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These Parties have agreed to amend Exhibits 13 and 14 to
the Agreement to add the software and associated contracts that are
part of the CCC Project Systems and to remove any software and
associated contracts replaced or retired as a result of the CCC
Standalone Projects at such time the software and associated
contracts are added or removed. There shall be no adjustment to the
Fees as a result of such changes to Exhibits 13 and 14
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vi. |
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Service Levels have been updated in Schedule 3.2.6
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NiSource — IBM Amendment #4
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vii. |
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If NiSource has not entered into a direct relationship with
Vertex as of the end of the CCC Fixed Fee Period, the Ongoing
Web/IVR Fees shall be as set forth in Schedule 4.2 (B).
The Ongoing Web/IVR Fees shall be subject to the application of ECA
in accordance with Schedule 4.1. |
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k. |
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As reflected in the restated Schedule 4.2 attached
to this Amendment, the Balance Sheet Fee and Wind Down Expense
amounts for CCC shall be reduced as of the Amendment Effective Date
to “0” for the remainder of the Term. |
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l. |
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For the avoidance of doubt, the words “capable of”
in Section V(2)(i) and (ii) of Annex 23.2.6(B) of
Amendment 3 shall mean that the infrastructure, including
but not limited to the size of the equipment and the number of
software licenses, installed and in production as of the time set
forth in Section V(2)(i) and (ii) of Annex
23.2.6(B) can support the minimum number of users as set forth
in such Section V(2)(i) and (ii) of Annex 23.2.6(B)
without the addition of any hardware, software or other items
beyond those not already addressed in subsection (i) of this
Section 3 . |
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m. |
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The Parties have agreed to delete from
Schedule 22.6 the transition of BSG and NIPSCO. |
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n. |
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In Schedule 4.2 , the CCC Fixed Fee is included for
12 months. Schedule 4.2 shall be adjusted in the
event of an extension or termination of the CCC Fixed Period. |
| 4. |
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Amendments applicable to the Supply Chain Management
Service Tower . |
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a. |
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The SCM Service Tower is hereby terminated as of the Amendment
Effective Date subject to subsections (c) and
(e) below. |
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b. |
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As of the Amendment Effective Date and continuing until the end
of the applicable Project Transition Back Period (as defined in
Section 15(k) below), unless shortened or
extended pursuant to Section 15(k) below,(the
“ SCM Fixed Period ”), IBM shall provide the
Services that relate to the SCM Service Tower in accordance with
the Agreement, including all of the Services that are set forth in
Schedule 2.4 to the Agreement (the “ SCM
Services ”) for a fixed monthly price as defined in
Schedule 4.2 (and not subject to ECA adjustment) (the
“ SCM Fixed Fee ”). The SCM Fixed Fee shall be
invoiced monthly in accordance with the payment terms set forth in
the Agreement and reduced on an equitable basis to reflect reduced
scope if the Services are transitioned away from IBM in phases
and/or prorated if the transition back is completed mid-month.
During the SCM Fixed Period, IBM shall provide the SCM Services
in |
NiSource — IBM Amendment #4
12
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accordance with all of the Service Levels applicable to the SCM
Services, including the new Service Level applicable to BuySource
as set forth in the updated restated Schedule 3.2.1 and
Schedule 3.3.1 attached to this Amendment. NiSource
shall not be obligated to pay the MSC or any other amounts relating
to the SCM Services, other than the SCM Fixed Fee as applicable,
during the SCM Fixed Period. As of the Transition Back Completion
Date (as defined below), all references to fees and payments for
and further performance obligations with respect to the SCM
Services shall be deleted from the Agreement and neither NiSource
nor IBM shall have any further obligations to pay for or provide
the SCM Services (except for such fees and obligations expressly
set forth herein). |
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c. |
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Commencing on the Transition Back Completion Date for the SCM
Services, IBM shall provide the support services for SCM as set
forth in Attachment K at the fees set forth in Attachment
K . |
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d. |
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For the avoidance of doubt, in addition to the provision of the
SCM Services as set forth above, IBM shall be obligated to provide
Termination/Expiration Assistance in accordance with the
Agreement. |
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e. |
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In connection with the termination of the SCM Service Tower,
NiSource shall pay to IBM the amount set forth in the Attachment
D – relating to SCM which represents the total
settlement payment by NiSource relating to the SCM Service Tower.
In no event shall NiSource be responsible for any termination or
wind down fees (including Breakage, Balance Sheet Fees and Wind
Down Expenses). All termination an |
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