1. | Subject to the terms of this Amendment, the Altivity Agreement is hereby terminated as of the Amendment Date by mutual agreement of the Parties. |
2. | Data that were "Aitivity Data" under Section 7.1 of the Altivity Agreement shall be deemed GPI Data. |
3. | Information that was "Confidential Information" of Altivity or Perot Systems under Section 10.1 of the Altivity Agreement, subject to the exceptions defined in Section 10.3(a) of the Altivity Agreement, shall be Confidential Information ofGPI or Perot Systems, respectively, under the GPI Agreement. |
4. | Subject to Section 5 of this Amendment, "Charges" as defined in and incurred under the Altivity Agreement before the Amendment Date and not previously paid by Altivity shall be deemed "Charges" payable by GPI under the GPI Agreement; provided that GPI shall retain the right to dispute any such amounts in accordance with Section 4.3 (Disputed Invoices) of the GPI Agreement. |
5. | The modified charges payable by GPI under the GPI Agreement as a result of the consummation of the transactions contemplated by this Amendment shall apply beginning September I, 2008. Accordingly, any Monthly Base Charges (as defined in the Altivity Agreement) previously invoiced by Perot Systems under the Altivity Agreement for the month of September 2008 and any Monthly Service Charges (as defined in the GPI Agreement) previously invoiced by Perot Systems under the GPI Agreement for the month of September 2008 shall be deemed void, and shall be |
6. | The Service Levels under the GPI Agreement as a result of the consummation of the transactions contemplated by this Amendment shall apply (including, without limitation, for purposes of determining the accrual of Service Level Credits and reporting obligations) beginning on the effective dates specified in Attachment A to Schedule 2.10 (Service Level Agreement) to the GPI Agreement, as amended by this Amendment (the "SLA Effective Dates"). Service Levels with SLA Effective Dates later than September 1, 2008 (collectively, the "Combined Scope Service Levels") represent combinations of Service Levels in effect prior to the Amendment Date under the Altivity Agreement and under the GPI Agreement (collectively, the "Legacy Service Levels"). From September 1, 2008 until such time as each Combined Scope Service Level takes effect on its SLA Effective Date, the Legacy Service Levels combined to create such Combined Scope Service Level will continue to apply; provided that, in the event during such period there occurs a Service Level Failure (as defined in the GPI Agreement) or Service Level Default (as defined in the Altivity Agreement) of any such Legacy Service Level, the amount of the resulting Service Level Credit (as defined in the GPI Agreement) will equal 50% of the Service Level Credit that would have accrued in the event of a Service |
7. | The following amendments are hereby made to Section 5.2 (Charges Renegotiation) of the Agreement: |
a. | The following sentence is hereby added to the end of Section 5.2(a) (Underutilization of Resource Units) of the Agreement: "With respect to RS6000 Server Services such renegotiation right will be triggered when the consumption for all types ofRS6000 LPARs is less than sixty-five percent (65%) of the cumulative Baselines for all types ofRS6000 LPARs for three (3) consecutive months or for five (5) months in any seven (7) month period, and such reduced resource utilization is anticipated by GPI to continue on a long term basis." |
b. | The following sentence is hereby added to the end of Section 5.2(b) (Excess Utilization of Resource Units) ofthe Agreement: "With respect to RS6000 Server Services such renegotiation right will be triggered when the consumption for all types ofRS6000 LPARs is greater than 135% of the cumulative Baselines for all types ofRS6000 LPARs for three (3) consecutive months or for five (5) months |
8. | Subject to the tenns of this Amendment, only the following sections of the Altivity Agreement shall survive its termination, and only as to rights and obligations arising out of acts, omissions, conditions or events occurring or existing before the Amendment Date, with GPI succeeding to Altivity's rights and obligations under such sections: |
a. | 3.14 (Compliance with Laws), |
b. | 4.11 (Govenunent Contract Flow-Down Clauses), |
c. | 5.5 (Audit Rights) excluding 5.5(b) and, as to operational audits only, 5.5(d) (provided that the Parties acknowledge and agree that GPI' s right to conduct operational audits pursuant to Section 14.1 of the GPI Agreement shall include operational audits pertaining to Altivity, including operational audits related to |
d. | 7 (Altivity Data), |
e. | 8.1 (Altivity Owned Materials), |
f. | 8.2 (Ownership of Developed Materials), |
g. | 8.4 (License to Service Provider), |
h. | 8.5 (Service Provider Pre-Existing Materials), |
k. | 10.3 (Exceptions to Confidential Treatment), |
I. | 11 (Representations and Warranties), except that any warranty under 11.7 shall not extend beyond the Amendment Date, |
m. | 13.1 (Indemnity by Service Provider), |
n. | 13.2 (Indemnity by Altivity), |
o. | 13.3 (Additional Indemnities), |
p. | 13.4 (Infringement), |
q. | Article 14 (Sections 14.1-14.7) (Liability); |
r. | 16.1 (Force Majeure), |
s. | 18.6 (Relationship of the Parties), |
u. | 18.12 (Order of Precedence), |
v. | 18.13 (Waiver of Default; Cumulative Remedies), |
w. | 18.14 (Third Party Beneficiaries), |
x. | 18.19 (Binding Nature and Assignment), |
y. | 18.21 (Entire Agreement), and |
z. | 18.23 (Covenant of Good Faith). |
9. | From and after the Amendment Date, (i) "Altivity Owned Materials" existing under and as defined in the Altivity Agreement shall be deemed to be "GPI Software" and/or "GPI Tools," as applicable, under and as defined in the GPI Agreement; (ii) "Service Provider Owned Materials" existing under and as defined in the Altivity Agreement shall be deemed to be "Perot Systems Software" and/or "Perot Systems Tools," as applicable, under and as defined |
10. | The terms and conditions relating to "Transitioned Employees" (as defined in the Altivity Agreement) in Section 4.6 (Training/Career Opportunities), Section 13.l(k) |
11. | Any Projects that are being performed pursuant to the Altivity Agreement as of the Amendment Date shall continue to be performed by Perot Systems in accordance with the applicable Statement of Work or Project Plans under which such Projects were commissioned. |
12. | For purposes of calculating the Damages Limitation defined in the first sentence of Section 18.2(a) of the GPI Agreement during the first twelve months after the Amendment Date, "Charges" as defined in the GPI Agreement shall be calculated so as to include the total "Charges" as defined in the Altivity Agreement that were payable to Perot Systems for performance of the Services under the Altivity Agreement (exclusive of Out-of-Pocket Expenses, Pass-Through Expenses, cost-plus Charges or taxes as those terms are defined in the Altivity Agreement) for the period between (i) twelve months prior to the assertion of the claim and (ii) the Amendment Date. |
13. | Any disputes that arise under the Altivity Agreement after the Amendment Date relating to periods prior thereto shall be administered in accordance with the Dispute Resolution Procedures in the GPI Agreement. Any indemnity proceedings arising under the terms of the Altivity Agreement after the Amendment Date relating to periods prior thereto shall be administered in accordance with the indemnification procedures set forth in Section |
14. | Schedule A is amended by adding the following sentence to the definition of "Operational Change Control Procedures": |
15. | Section 15.11(b) of the GPI Agreement is amended, by adding the phrase "the amount set forth in Schedule 15.11(b) for the month in which the effective date of termination occurs," to state as follows: |
"(b) | Notwithstanding anything to the contrary in this Agreement, regardless of the grounds for any termination, GPI shall pay Perot Systems for all Charges payable by GPI arising prior to the effective date of termination, any accrued and unpaid Transition Fees applicable to Transition tasks completed by Perot Systems prior to the effective date of termination, any Charges for Termination Assistance (which could include payment for Designated Services), the amount set forth in |
16. | Section 8.3(a)(i) of the GPI Agreement is amended by adding the following after the end of the second sentence: |
17. | The following Schedules and Attachments of the GPI Agreement are an1ended and restated, or added, as of the Amendment Date and, as so amended and restated or added, are attached hereto and made part hereof: |