EXHIBIT 10.6
DATA CENTER AND DISASTER RECOVERY SERVICES AGREEMENT , dated
as of August 10, 2009 (this “ Agreement ”),
between ALTISOURCE SOLUTIONS S.à r.l., a private limited
liability company organized under the laws of the Grand Duchy of
Luxembourg (together with its Affiliates “ Provider
” ) and OCWEN FINANCIAL CORPORATION, a Florida corporation
(together with its Affiliates “ Customer
”).
WHEREAS , Customer and Altisource Portfolio Solutions S.A.
(formerly known as Altisource Portfolio Solutions S.à r.l.,
formerly known as Ocwen Luxembourg S.à r.l.), the sole
parent of Provider (“ ALTISOURCE Parent ”), are
parties to a Separation Agreement dated as of August 10, 2009 (the
“ Separation Agreement ”), pursuant to which
Customer will (i) separate the ALTISOURCE Business (as defined in
the Separation Agreement) and (ii) distribute (the “
Separation ”) to the holders of shares of
Customer’s outstanding capital stock all of the outstanding
capital stock of ALTISOURCE Parent;
WHEREAS , following the Separation, Provider will operate
the ALTISOURCE Business, and Customer will operate the OCWEN
Business (as defined in the Separation Agreement); and
WHEREAS , following the Separation, Customer desires to
receive, and Provider is willing to provide, or cause to be
provided, certain data center and disaster recovery services in
connection with Customer’s Business, in each case subject to
the terms and conditions of this Agreement.
NOW, THEREFORE , in consideration of the mutual agreements,
provisions and covenants contained in this Agreement, the parties
agree as follows:
1. DEFINITIONS
“
Affiliate ” means with respect to any Person (a
“Principal”) (a) any directly or indirectly
wholly-owned subsidiary of such Principal, (b) any Person that
directly or indirectly owns 100% of the voting stock of such
Principal or (c) a Person that controls, is controlled by or is
under common control with such Principal. As used herein,
“control” of any entity means the possession, directly
or indirectly, through one or more intermediaries, of the power to
direct or cause the direction of the management or policies of such
entity, whether through ownership of voting securities or other
interests, by contract or otherwise. Furthermore, with respect to
any Person that is partially owned by such Principal and does not
otherwise constitute an Affiliate (a “Partially-Owned
Person”), such Partially-Owned Person shall be considered an
Affiliate of such Principal for purposes of this Agreement if such
Principal can, after making a good faith effort to do so, legally
bind such Partially-Owned Person to this Agreement.
2. SERVICES
2.1
Services . During the term of this Agreement, Provider shall
provide to Customer the services set forth on Exhibit A (the
“ Services ”) on the terms and conditions set
forth in this Agreement.
2.2
Additional Services . Customer may request, and Provider may
provide, additional services (“ Additional Services
”) upon terms and rates that shall be mutually agreed to in
writing between the parties in an addendum (“ Addendum
”) to this Agreement. Each Addendum shall be appended to this
Agreement and incorporated into this Agreement by this
reference.
2.3
Right of First Opportunity .
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(a)
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If the Customer elects to receive
any Additional Service, it shall first request a proposal for the
provision of such Additional Service from the Provider. The
Provider shall have 30 Business Days (the “ Exclusive
Tender Period ”) to respond to such request for
Additional Service and to provide a proposed addendum to the
Customer. During the Exclusive Tender Period, the Customer shall
not solicit proposals or negotiate with any other third party with
respect to such request for Additional Service. Upon receipt of the
Provider’s proposal for the Additional Service, the Customer
shall consider such proposal and shall negotiate with the Provider
in good faith with respect to the possible provision by the
Provider of such Additional Services.
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(b)
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If, at the end of the Exclusive
Tender Period, the Provider and the Customer do not agree on the
proposed Addendum, the Customer may solicit proposals from third
parties with respect to the Additional Service; provided ,
however, that the Customer shall not disclose any information
received from the Provider, whether verbal or written, in the
proposed Addendum or during the Exclusive Tender Period
negotiations, and such information shall be subject to the
confidentiality terms hereof.
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2.4 Alternatively
to the procedures set forth in Section 2.3 , Customer may
solicit proposals or negotiate with third parties with respect to
an Additional Service (such third parties, “ Third Party
Additional Service Providers ”) during the Exclusive
Tender Period so long as:
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(a)
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at least fifteen Business Days
prior to engaging any Third Party Additional Service Provider,
Customer shall disclose to Provider a description of the Additional
Services to be provided by such Third Party Additional Service
Provider and all fees, costs and other expenses to be charged by
such Third Party Additional Service Provider (such description, a
“ Third Party Additional Service Offer
”);
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(b)
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within ten Business Days of
receipt of any Third Party Additional Service Offer, Provider shall
have the right to make an offer (a “ Matching Offer
”) to provide the same or substantially the same Additional
Services as set forth in the Third Party Additional Service Offer;
and
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(c)
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if the fees set forth in the
Matching Offer do not exceed the fees set forth in the Third Party
Additional Services Offer, Customer may not accept the Third Party
Additional Services Offer. Conversely, if the fees set forth in the
Matching Offer exceed the fees set forth in the Third Party
Additional Services Offer, Customer may accept the Third Party
Additional Services Offer.
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2.5
Status Report . Provider shall provide Customer with status
reports as mutually agreed to by the parties which shall detail the
status of the Services.
3. RESPONSIBILITIES
OF CUSTOMER
Customer
shall assist Provider by promptly providing such information and
access to Customer’s facilities, computer networks and other
systems as Provider may reasonably request to enable Provider to
timely perform its obligations. Customer shall provide a sufficient
number of its personnel to assist Provider in completing the
Services in a timely manner to the extent Provider may reasonably
request from time to time.
4. FEES
4.1
Fees . Customer shall pay Provider for the Services and
Additional Services at the rates set forth in a separate fee letter
to be delivered by Provider to Customer dated (i) as of the date
hereof, with respect to the Services and (ii) as of the date of
agreement to provide Additional Services, if any, with respect to
Additional Services (collectively, the “ Data Center and
Disaster Recover Services Fee Letter ”), as applicable
(the “ Fees ”).
4.2 Provider
shall submit statements of account to the Customer on a monthly
basis with respect to all amounts payable by the Provider to the
Customer hereunder (the “ Invoiced Amount ”),
setting out the Services provided, and the amount billed to the
Customer as a result of providing such Services (together with, in
arrears, any other invoices for Services provided by third parties,
in each case setting out the Services provided by the applicable
third parties). The Customer shall pay the Invoiced Amount to the
Provider by wire transfer of immediately available funds to an
account or accounts specified by the Provider, or in such other
manner as specified by the Provider in writing, or otherwise
reasonably agreed to by the Parties, within 30 days of the date of
delivery to the Customer of the applicable statement of account;
provided , that, in the event of any dispute as to an
Invoiced Amount, the Customer shall pay the undisputed portion, if
any, of such Invoiced Amount in accordance with the foregoing, and
shall pay the remaining amount, if any, promptly upon resolution of
such dispute.
4.3
Taxes . Customer shall be responsible for and shall pay or
reimburse Provider for any sales, use, import, excise, value added
or other taxes or levies (other than Provider’s income taxes)
associated with this Agreement.
5. TERM
AND TERMINATION
5.1
Term .
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(a)
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Initial Term
. This Agreement shall commence on
the Distribution Date (as defined in the Separation Agreement) and
shall continue in full force and effect, subject to Section
5.1(b) , until the date that is eight (8) years from the
Distribution Date (the “ Initial Term ”), or the
earlier date upon which this Agreement has been otherwise
terminated in accordance with the terms hereof.
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(b)
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Renewal Term
. This Agreement may be renewed for
successive two (2) year terms (each, a “ Renewal Term
) by mutual written agreement of the parties hereto, executed not
less than six (6) months prior to the expiration of the Initial
Term or any Renewal Term, as applicable.
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(c)
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In the event either party decides
that it does not wish to renew this Agreement or any particular
Service or Additional Service hereunder upon the expiration of the
Initial Term or any Renewal Term, as applicable, such party shall
so notify the other party at least nine (9) months before the
completion of the Initial Term or Renewal Term, as
applicable.
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5.2
Termination by Either Party .
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(a)
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If either Party materially
defaults in the performance of any provision of this Agreement, and
such default is not cured within thirty (30) days after receiving
notice of such default from the non-defaulting Party, the
non-defaulting Party shall be entitled to terminate this Agreement
effective immediately upon delivery of final written notice to the
defaulting Party.
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(b)
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If a Party (i) becomes insolvent,
(ii) files a petition in bankruptcy or insolvency, is adjudicated
bankrupt or insolvent or files any petition or answer seeking
reorganization, readjustment or arrangement of its business under
any law relating to bankruptcy or insolvency, or if a receiver,
trustee or liquidator is appointed for any of the property of the
Party and within 60 days thereof such Party fails to secure a
dismissal thereof or (iii) makes any assignment for the benefit of
creditors, then and in that event only, the Party that is not the
subject of such proceedings may terminate this Agreement
immediately upon written notice.
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5.3
Consequences of Termination . Customer shall be liable for
all Fees incurred prior to the date of termination and shall not be
entitled to a refund of any Fees paid prior to the date of
termination. Furthermore, in the event either party terminates this
Agreement in accordance with Section 5.2 and, prior to such
termination, Provider has entered into one or more leases or third
party contracts for purposes of providing the Services to Customer
(such leases and contracts, the “ Designated Contracts
”), Customer shall also be liable for (a) unamortized lease
costs associated with the Designated Contracts and (b) the
Customer’s pro rata share (as of the date of termination) of
the present value (calculated by reference to the prime rate
charged by JPMorgan Chase Bank, N.A. (or its successor)) of the
remaining contractual payments due under such Designated Contracts.
Provider shall have a duty to mitigate the costs referred to in
clauses (a) and (b) above by making a good faith effort to sublease
the Customer’s allocated portion of the space leased pursuant
to any Designated Contracts following any such termination and to
otherwise mitigate any other third party contractual costs. In
addition, in the event of termination, each party shall return or
destroy all of the other party’s Information (as defined
below) in accordance with Section 6.2 .
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6. CONFIDENTIAL
INFORMATION
6.1 Subject
to Section 6.2 , each of Provider and Customer, on behalf of
itself and each of its subsidiaries, agrees to hold, and to cause
its directors, officers, employees, agents, accountants, counsel
and other advisors and representatives to hold, in strict
confidence, with at least the same degree of care that applies to
confidential and proprietary information of Customer pursuant to
policies in effect as of the Distribution Date (as defined in the
Separation Agreement), all information, whether or not patentable
or copyrightable, in written, oral, electronic or other tangible or
intangible forms, stored in any medium, including studies, reports,
records, books, contracts, instruments, surveys, discoveries,
ideas, concepts, know-how, techniques, designs, specifications,
drawings, blueprints, diagrams, models, prototypes, samples, flow
charts, data, computer data, disks, diskettes, tapes, algorithms,
computer programs or other software, marketing plans, customer
names, communications by or to attorneys (including attorney-client
privileged communications), memos and other materials prepared by
attorneys or under their direction (including attorney work
product), and other technical, financial, employee or business
information or data (“ Information ”) concerning
the other party and its subsidiaries that is either in its
possession (including Information in its possession prior to the
Distribution Date) or furnished by the other party and its
subsidiaries and affiliates or its directors, officers, employees,
agents, accountants, counsel and other advisors and representatives
at any time pursuant to this Agreement, and shall not use any such
Information other than for such purposes as shall be expressly
permitted hereunder, except to the extent that such Information has
been (i) in the public domain through no fault of such party or any
of its subsidiaries or any of their respective directors, officers,
employees, agents, accountants, counsel and other advisors and
representatives, (ii) later lawfully acquired from other sources by
such party (or any of its subsidiaries), which sources are not
known by such party to be themselves bound by a confidentiality
obligation, or (iii) independently generated without reference to
any proprietary or confidential Information of the other party or
any of its subsidiaries.
6.2 Each
party agrees not to release or disclose, or permit to be released
or disclosed, any such Information (excluding Information described
in clauses (i), (ii) and (iii) of Section 6.1 ) to any other
individual, a general or limited partnership, a corporation, a
trust, a joint venture, an unincorporated organization, a limited
liability entity, any other entity and any Governmental Authority
(as defined below) (each, a “ Person ”), except
its directors, officers, employees, agents, accountants, counsel
and other advisors and representatives who need to know such
Information (who shall be advised of their obligations hereunder
with respect to such Information), except in compliance with
Section 6.3 . Without limiting the foregoing, when any
Information is no longer needed for the purposes contemplated by
this Agreement, each party will promptly, after request of the
other party, either return the Information to the other party in a
tangible form (including all copies thereof and all notes, extracts
or summaries based thereon) or certify to the other party that any
Information not returned in a tangible form (including any such
Information that exists in an electronic form) has been
dest