Information Technology Service Agreement (2004)Full Document 

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INFORMATION TECHNOLOGY

 

SERVICE AGREEMENT

 

 

BETWEEN

 

INVESTORS BANK & TRUST COMPANY

 

 

AND

 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

 

[THE “PROVIDER”]

 

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TABLE OF CONTENTS

 

1.

SCOPE OF SERVICES

 

 

1.1

GENERAL DESCRIPTION OF SERVICES

 

 

 

1.1.1 Scope of Services.

 

 

1.2

TRANSITION

 

 

 

1.2.1 Transition Services

 

 

 

1.2.2 Critical Milestones

 

 

 

1.2.3 Progress Reports

 

 

1.3

MANAGEMENT SERVICES

 

 

 

1.3.1 Procurement

 

 

 

1.3.2 Disaster Recovery

 

 

 

1.3.3 Security Management

 

 

1.4

TECHNOLOGY MANAGEMENT; UPGRADES AND ENHANCEMENTS

 

 

 

1.4.1 Technological Enhancements

 

 

 

1.4.2 Technology Planning

 

 

 

1.4.3 Technology Upgrades

 

 

 

1.4.4 Shared Use Assets

 

 

1.5

VIRUSES AND DISABLING DEVICES

 

 

1.6

END-USER SATISFACTION AND COMMUNICATION

 

 

1.7

STANDARDS AND PROCEDURES MANUAL

 

 

 

1.7.1 Development of Manual

 

 

 

1.7.2  Content of Manual

 

 

1.8

SERVICE COMPATIBILITY

 

 

1.9

MASLS

 

 

 

1.9.1 Commitment to MASLs

 

 

 

1.9.2 MASL Measurement and Reporting

 

 

 

1.9.3 Root-Cause Analysis and Resolution

 

 

 

1.9.4 Improvements in Performance

 

 

 

1.9.5 Service Compliance Relief

 

 

1.10

EXCLUSIVITY / NON-EXCLUSIVITY

 

 

 

 

 

2.

ASSETS AND THIRD-PARTY CONTRACTS

 

 

2.1

INVESTORS-OWNED ASSETS

 

 

2.2

INVESTORS-LEASED ASSETS

 

 

2.3

THIRD-PARTY APPROVALS

 

 

2.4

RETURN OF INVESTORS ASSETS

 

 

2.5

PROVISION OF PROVIDER ASSETS

 

 

 

2.5.2 Provision of Provider Assets to Investors

 

 

 

2.5.3 Installation of Provider Assets

 

 

 

2.5.4 Maintenance of Provider Assets

 

 

2.6

RETURN AND ACQUISITION OF PROVIDER ASSETS BY INVESTORS

 

 

2.7

INVESTORS MAINTENANCE AGREEMENTS

 

 

2.8

FURTHER ASSURANCES

 

 

 

 

 

3.

HUMAN RESOURCES

 

 

3.1

EMPLOYEES

 

 

3.1.2

INVESTORS IN-SCOPE EMPLOYEE

 

 

 

 

 

4.

PROVISION OF RESOURCES BY INVESTORS

 

 

4.1

OFFICE SPACE AND FURNISHINGS

 

 

4.2

DESIGNATED RESOURCES

 

 

4.3

ACCESS TO PERSONNEL AND INFORMATION

 

 

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4.4

OTHER FACILITY-RELATED OBLIGATIONS

 

 

 

 

 

5.

RETAINED AUTHORITY

 

 

5.1

STRATEGIC AND OPERATIONAL PLANNING

 

 

5.2

SERVICE DESIGN AND DELIVERY

 

 

5.3

MOVES, ADDS, AND CHANGES; APPLICATIONS DEVELOPMENT

 

 

5.4

BUSINESS PROCESS REENGINEERING

 

 

5.5

CONTRACT MANAGEMENT

 

 

5.6

BUDGET MANAGEMENT

 

 

5.7

VALIDATION AND VERIFICATION

 

 

5.8

OTHER RETAINED AUTHORITY

 

 

5.9

REVIEW AND ACCEPTANCE

 

 

 

5.9.1 Acceptance Testing

 

 

 

5.9.2 Cure

 

 

 

5.9.3 Final Acceptance

 

 

 

 

 

6.

FINANCIAL TERMS

 

 

6.1

ANNUAL SERVICE FEES

 

 

 

6.1.1 Annual Service Fees

 

 

 

6.1.2 Currency / Charges

 

 

 

6.1.3 Annual Services Fees Invoice

 

 

 

6.1.4 Adds Charges

 

 

 

6.1.5 Other Charges

 

 

 

6.1.6 Deletes Credits

 

 

 

6.1.8 Monthly Usage Charge

 

 

PRICING AUDIT

 

 

6.3

REDUCTION OF PAYMENTS

 

 

6.4

TAXES

 

 

6.5

BENCHMARKING

 

 

6.6

WORK ORDERS

 

 

6.7

INITIATIVES

 

 

6.8

INCENTIVES AND FEE REDUCTIONS

 

 

6.10

DISPUTED AMOUNTS

 

 

 

 

 

7.

RELATIONSHIP MANAGEMENT

 

 

7.1

PERSONNEL

 

 

 

7.1.1 Provider’s Key Personnel

 

 

 

7.1.2 Provider Contract Manager

 

 

 

7.1.3 Additional Personnel Requirements

 

 

 

7.1.4 Minimum Proficiency Levels

 

 

 

7.1.5 Specialized Personnel

 

 

 

7.1.6 Training

 

 

 

7.1.7 Replacement of Personnel

 

 

 

7.1.8 Conduct of Provider Personnel

 

 

7.2

MANAGEMENT COMMITTEE

 

 

7.3

PARTIES’ RELATIONSHIP

 

 

7.4

WORK ORDER PROCEDURES; CHANGE MANAGEMENT PROCEDURE

 

 

7.5

EXTRAORDINARY EVENTS OR CIRCUMSTANCES

 

 

 

 

 

8.

INITIATIVES

 

 

8.1

INITIATIVE REQUIREMENTS AND PROCESS

 

 

8.2

COOPERATION AND COORDINATION

 

 

 

 

 

9.

PROPRIETARY RIGHTS [CUT AND PASTE IP LANGUAGE ONCE WE FINALIZE]

 

 

 

 

 

10.

SECURITY AND PROTECTION OF INFORMATION

 

 

10.1

SECURITY

 

 

 

10.1.1Security and Policies

 

 

 

10.1.2 Information Access

 

 

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10.1.3 Background Checks

 

 

 

10.1.4 Other Policies

 

 

 

10.1.5 Minimum Security Standards and Audit

 

 

10.2

PROTECTION OF CONFIDENTIAL INFORMATION

 

 

 

10.2.1 Nondisclosure; Policies and Procedures

 

 

10.3

LEGALLY REQUIRED DISCLOSURE

 

 

10.4

NOTIFICATION

 

 

10.5

INJUNCTIVE RELIEF

 

 

10.6

RETURN OF CONFIDENTIAL INFORMATION

 

 

10.7

RESIDUAL INFORMATION

 

 

 

 

 

11.

TERM

 

 

11.1

INITIAL TERM; RENEWALS

 

 

 

11.1.1 Initial Term and Appropriations

 

 

 

11.1.2 Notification of Expiration

 

 

 

11.1.3 Renewal by Investors

 

 

 

11.1.4 Extensions by Investors

 

 

11.2

EARLY TERMINATION

 

 

 

11.2.1 For Convenience

 

 

 

11.2.2 For Missed MASLs

 

 

11.5

TERMINATION FOR FORCE MAJEURE EVENT

 

 

 

 

 

12.

DISENTANGLEMENT

 

 

12.1

GENERAL OBLIGATIONS

 

 

12.2

DISENTANGLEMENT PROCESS

 

 

12.3

SPECIFIC OBLIGATIONS

 

 

 

12.3.1 Full Cooperation and Information

 

 

 

12.3.2 No Interruption or Adverse Impact

 

 

 

12.3.3 Third-Party Authorizations

 

 

 

12.3.4 Licenses to Proprietary Software

 

 

 

12.3.5 Transfer of Leases, Licenses, and Contracts

 

 

 

12.3.6 Delivery of Documentation

 

 

 

12.3.7 Hiring of Employees

 

 

12.4

PREPARATION FOR DISENTANGLEMENT

 

 

 

12.4.1 Maintenance of Assets

 

 

 

12.4.2 All Necessary Cooperation and Actions

 

 

 

 

 

13.

REMEDIES; LIMITATIONS OF LIABILITY

 

 

13.3

LIMITATION OF LIABILITY AND DISCLAIMERS

 

 

13.5

FORCE MAJEURE EVENTS

 

 

 

 

 

14.

INSURANCE

 

 

14.1

REQUIRED GENERAL LIABILITY INSURANCE COVERAGE

 

 

 

14.1.1 Commercial General Liability Insurance

 

 

 

14.1.2 Required General Liability Policy Coverage

 

 

 

14.1.3 Additional Insureds

 

 

 

14.1.4 Primary Insurance Endorsement

 

 

 

14.1.5 Form of General Liability Insurance Policies

 

 

14.2

BUSINESS AUTOMOBILE LIABILITY INSURANCE

 

 

14.3

STATUTORY WORKERS’ COMPENSATION AND EMPLOYERS’ LIABILITY INSURANCE

 

 

14.5

GENERAL PROVISIONS

 

 

 

14.5.1 Evidence of Insurance

 

 

 

14.5.2 Claims-Made Coverage

 

 

 

14.5.3 Notice of Cancellation or Change of Coverage

 

 

 

14.5.4 Qualifying Insurers

 

 

 

 

 

15.

INVOICES AND REPORTS

 

 

15.1

INVOICES

 

 

 

15.1.1 General

 

 

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15.1.2 Fee-Reductions

 

 

 

15.1.3 Work Orders

 

 

 

15.1.4 Initiatives

 

 

15.2

REPORTS

 

 

 

15.2.1 General

 

 

 

15.2.2 Media

 

 

 

 

 

16.

RECORDKEEPING AND AUDIT RIGHTS

 

 

16.1

RECORDKEEPING

 

 

16.2

OPERATIONAL AUDIT RIGHTS

 

 

 

 

 

17.

LEGAL COMPLIANCE

 

 

 

 

 

 

17.1

COMPLIANCE WITH ALL LAWS AND REGULATIONS

 

 

 

 

 

18.

REPRESENTATIONS AND WARRANTIES

 

 

18.1

PROVIDER REPRESENTATIONS, WARRANTIES, AND RELATED COVENANTS

 

 

 

18.1.1 Performance of the Services

 

 

 

18.1.2 Y2K Compliance

 

 

 

18.1.4 Litigation and Service of Process

 

 

 

18.1.5 Legal and Corporate Authority

 

 

 

18.2.1 Legal and Corporate Authority

 

 

 

18.2.2 Disclaimer

 

 

18.3

WARRANTY DISCLAIMER

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