Exhibit 10.6
CONFIDENTIAL TREATMENT REQUESTED
--------------------------------
FOR PORTIONS OF THIS DOCUMENT.
------------------------------
PORTIONS FOR WHICH CONFIDENTIAL TREATMENT
-----------------------------------------
IS REQUESTED ARE DENOTED BY [confidential treatment requested].
---------------------------------------------------------------
CONFIDENTIAL INFORMATION OMITTED HAS BEEN
-----------------------------------------
FILED SEPARATELY WITH THE
-------------------------
SECURITIES AND EXCHANGE COMMISSION.
-----------------------------------
INFORMATION TECHNOLOGY
SERVICE AGREEMENT
BETWEEN
KELLWOOD COMPANY
AND
ELECTRONIC DATA SYSTEMS CORPORATION
- ----------------------------------------------------------------------------- KELLWOOD COMPANY / ELECTRONIC DATA SYSTEMS CORPORATION IT SERVICE AGREEMENT
PAGE 1
TABLE OF CONTENTS
PAGE
---- 1. SCOPE OF SERVICES.................................................................................... 9
1.1. GENERAL DESCRIPTION OF SERVICES............................................................... 9
1.1.1. Scope of Services..................................................................... 10
1.2. TRANSITION.................................................................................... 10
1.2.1. Transformation Services............................................................... 10
1.2.2. Critical Milestones................................................................... 10
1.2.3. Progress Reports...................................................................... 10
1.3. MANAGEMENT SERVICES........................................................................... 11
1.3.1. Procurement........................................................................... 11
1.3.2. Disaster Recovery..................................................................... 11
1.3.3. Security Management................................................................... 11
1.4. TECHNOLOGY MANAGEMENT; UPGRADES AND ENHANCEMENTS.............................................. 12
1.4.1. Technological Enhancements............................................................ 12
1.4.2. Technology Planning................................................................... 12
1.4.3. Baseline Technology Upgrades.......................................................... 14
1.4.4. Shared Resources...................................................................... 14
1.5. VIRUSES AND DISABLING DEVICES................................................................. 14
1.6. END-USER SATISFACTION AND COMMUNICATION....................................................... 15
1.7. STANDARDS AND PROCEDURES MANUAL............................................................... 15
1.7.1. Development of Manual................................................................. 15
1.7.2. Content of Manual..................................................................... 15
1.8. SERVICE COMPATIBILITY......................................................................... 16
1.9. MASLs......................................................................................... 16
1.9.1. Commitment to MASLs................................................................... 16
1.9.2. MASL Measurement and Reporting........................................................ 17
1.9.3. Root-Cause Analysis and Resolution.................................................... 17
1.9.4. Improvements in Performance........................................................... 18
1.9.5. Service Compliance Relief............................................................. 18
1.10. NON-EXCLUSIVITY............................................................................... 18
1.11. 1996 CONTRACT................................................................................. 19
2. ASSETS AND THIRD-PARTY CONTRACTS..................................................................... 19
2.1. KELLWOOD-OWNED EQUIPMENT...................................................................... 19
2.2. KELLWOOD-LEASED EQUIPMENT..................................................................... 19
2.3. THIRD-PARTY APPROVALS......................................................................... 19
2.4. RETURN OF KELLWOOD EQUIPMENT.................................................................. 20
2.5. PROVISION OF EDS ASSETS....................................................................... 20
2.5.1. Use of EDS Equipment by EDS Employees................................................. 20
2.5.2. Provision of EDS Equipment to Kellwood................................................ 20
2.5.3. Installation of EDS Equipment......................................................... 20
2.5.4. Maintenance of EDS Equipment.......................................................... 20
2.6. RETURN AND ACQUISITION OF EDS EQUIPMENT BY KELLWOOD........................................... 21
2.7. KELLWOOD MAINTENANCE AGREEMENTS............................................................... 21
2.8. FURTHER ASSURANCES............................................................................ 21
3. HUMAN RESOURCES...................................................................................... 22
3.1. EDS EMPLOYEES................................................................................. 22
3.2. SOLICITATION OF PERSONNEL..................................................................... 22
4. PROVISION OF RESOURCES BY KELLWOOD................................................................... 22
4.1. OFFICE SPACE AND FURNISHINGS.................................................................. 22
- ----------------------------------------------------------------------------- KELLWOOD COMPANY / ELECTRONIC DATA SYSTEMS CORPORATION IT SERVICE AGREEMENT
PAGE 2
4.2. SPECIFIC HARDWARE AND CARRIER CHARGES......................................................... 23
4.3. ACCESS TO PERSONNEL AND INFORMATION........................................................... 23
4.4. OTHER FACILITY-RELATED OBLIGATIONS............................................................ 23
5. RETAINED AUTHORITY................................................................................... 24
5.1. STRATEGIC AND OPERATIONAL PLANNING............................................................ 25
5.2. SERVICE DESIGN AND DELIVERY................................................................... 25
5.3. MOVES, ADDS, AND CHANGES; APPLICATIONS DEVELOPMENT............................................ 25
5.4. CONTRACT MANAGEMENT........................................................................... 26
5.5. BUDGET MANAGEMENT............................................................................. 26
5.6. VALIDATION AND VERIFICATION................................................................... 26
5.7. OTHER RETAINED AUTHORITY...................................................................... 26
5.8. REVIEW AND ACCEPTANCE......................................................................... 26
5.8.1. Acceptance Testing.................................................................... 26
5.8.2. Cure.................................................................................. 27
5.8.3. Final Acceptance...................................................................... 27
6. FINANCIAL TERMS...................................................................................... 28
6.1. [CONFIDENTIAL TREATMENT REQUESTED]............................................................ 29
6.2. PRICING AUDIT................................................................................. 29
6.3. REDUCTION OF PAYMENTS......................................................................... 30
6.4. TAXES......................................................................................... 30
6.5. BENCHMARKING.................................................................................. 30
6.6. OTHER SERVICES................................................................................ 31
6.7. INITIATIVE FEES............................................................................... 32
6.8. FEE REDUCTIONS................................................................................ 32
6.9. ONLY PAYMENTS................................................................................. 32
6.10. SET OFF....................................................................................... 32
6.11. DISPUTED AMOUNTS.............................................................................. 32
6.12. PROCUREMENT................................................................................... 33
6.13. COST OF LIVING ADJUSTMENT..................................................................... 33
6.13.1. Adjustment........................................................................... 33
6.13.2. Change of Index...................................................................... 34
7. RELATIONSHIP MANAGEMENT.............................................................................. 34
7.1. PERSONNEL..................................................................................... 34
7.1.1. EDS' Key Personnel.................................................................... 34
7.1.2. EDS Contract Manager.................................................................. 35
7.1.3. Kellwood Key Personnel and Representatives............................................ 36
7.1.4. Additional Personnel Requirements..................................................... 36
7.1.5. Minimum Proficiency Levels............................................................ 36
7.1.6. Specialized Personnel................................................................. 37
7.1.7. Training.............................................................................. 37
7.1.8. Replacement of Personnel.............................................................. 37
7.1.9. Supervision and Conduct of EDS Personnel.............................................. 37
7.2. MANAGEMENT COMMITTEE.......................................................................... 38
7.3. PARTIES' RELATIONSHIP......................................................................... 38
7.4. WORK ORDER PROCEDURES; CHANGE MANAGEMENT PROCEDURE............................................ 38
8. INITIATIVES.......................................................................................... 39
8.1. INITIATIVE REQUIREMENTS AND PROCESS........................................................... 39
8.2. COOPERATION AND COORDINATION.................................................................. 40
8.3. RIGHT OF FIRST REFUSAL........................................................................ 40
9. LIMITATION OF FUTURE CONTRACTS....................................................................... 41
10. PROPRIETARY RIGHTS................................................................................... 41
- ----------------------------------------------------------------------------- KELLWOOD COMPANY / ELECTRONIC DATA SYSTEMS CORPORATION IT SERVICE AGREEMENT
PAGE 3
10.1. OWNERSHIP OF WORK PRODUCT..................................................................... 41
10.1.1. Kellwood Sole Owner.................................................................. 41
10.1.2. Existing Intellectual Property....................................................... 42
10.1.3. EDS Methodologies.................................................................... 42
10.1.4. Intellectual Property................................................................ 42
10.1.5. Third-Party Underlying Works......................................................... 43
10.2. RIGHTS AND LICENSES........................................................................... 43
10.2.1. Necessary to the Services............................................................ 43
10.2.2. Advance Consents..................................................................... 43
10.3. KELLWOOD DATA................................................................................. 43
10.4. INFRINGEMENT.................................................................................. 44
10.5. COOPERATION................................................................................... 44
11. SECURITY AND PROTECTION OF INFORMATION............................................................... 45
11.1. SECURITY...................................................................................... 45
11.1.1. Security and Policies................................................................ 45
11.1.2. Information Access................................................................... 45
11.1.3. Background Checks.................................................................... 45
11.1.4. Other Policies....................................................................... 46
11.1.5. Minimum Security Standards and Audit................................................. 46
11.2. PROTECTION OF KELLWOOD CONFIDENTIAL INFORMATION............................................... 46
11.2.1. Nondisclosure; EDS Policies and Procedures........................................... 46
11.2.2. Disclosure Requests.................................................................. 47
11.2.3. Permitted Disclosure................................................................. 47
11.2.4. Publicity............................................................................ 47
11.3. LEGALLY REQUIRED DISCLOSURE................................................................... 47
11.4. NOTIFICATION.................................................................................. 47
11.5. INJUNCTIVE RELIEF............................................................................. 48
11.6. RETURN OF CONFIDENTIAL INFORMATION............................................................ 48
11.7. EDS CONFIDENTIAL INFORMATION.................................................................. 48
12. TERM ............................................................................................. 49
12.1. INITIAL TERM; RENEWALS........................................................................ 49
12.1.1. Initial Term......................................................................... 49
12.1.2. Extensions by Kellwood............................................................... 49
12.2. EARLY TERMINATION FOR CONVENIENCE............................................................. 49
12.3. TERMINATION FOR DEFAULT....................................................................... 50
12.3.1. Termination for EDS Default.......................................................... 50
12.3.2. Termination for Kellwood Default..................................................... 50
12.4. TERMINATION FOR FORCE MAJEURE EVENT........................................................... 50
12.5. TERMINATION FOR INSOLVENCY.................................................................... 51
12.6. TERMINATION FOR DISBARMENT.................................................................... 51
12.7. EFFECT OF ENDING OF TERM...................................................................... 51
12.8. NO TERMINATION BY EDS......................................................................... 51
13. DISENTANGLEMENT...................................................................................... 51
13.1. GENERAL OBLIGATIONS........................................................................... 51
13.2. DISENTANGLEMENT PROCESS....................................................................... 52
13.3. SPECIFIC OBLIGATIONS.......................................................................... 52
13.3.1. Full Cooperation and Information..................................................... 52
13.3.2. No Interruption or Adverse Impact.................................................... 53
13.3.3. Third-Party Authorizations........................................................... 53
13.3.4. Licenses to Proprietary Software..................................................... 53
13.3.5. Transfer of Assets................................................................... 53
13.3.6. Transfer of Leases, Licenses, and Contracts.......................................... 54
13.3.7. Delivery of Kellwood Confidential Information........................................ 54
- ----------------------------------------------------------------------------- KELLWOOD COMPANY / ELECTRONIC DATA SYSTEMS CORPORATION IT SERVICE AGREEMENT
PAGE 4
13.3.8. Hiring of Employees.................................................................. 54
13.4. PREPARATION FOR DISENTANGLEMENT............................................................... 55
13.4.1. Complete Documentation............................................................... 55
13.4.2. Maintenance of Assets................................................................ 55
13.4.3. Advance Written Consents............................................................. 55
13.4.4. All Necessary Cooperation and Actions................................................ 55
14. REMEDIES; LIMITATIONS OF LIABILITY................................................................... 56
14.1. REMEDIES CUMULATIVE........................................................................... 56
14.2. ATTORNEYS' FEES............................................................................... 56
14.3. LIMITATION OF LIABILITY AND DISCLAIMERS....................................................... 56
14.4. FORCE MAJEURE EVENTS.......................................................................... 57
15. INSURANCE............................................................................................ 58
15.1. REQUIRED GENERAL LIABILITY INSURANCE COVERAGE................................................. 58
15.1.1. Commercial General Liability Insurance............................................... 58
15.1.2. Additional Insureds.................................................................. 59
15.1.3. Primary Insurance Endorsement........................................................ 59
15.1.4. Form of General Liability Insurance Policies......................................... 59
15.2. BUSINESS AUTOMOBILE LIABILITY INSURANCE....................................................... 59
15.3. STATUTORY WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE............................ 59
15.4. PROFESSIONAL ERRORS AND OMISSIONS LIABILITY INSURANCE/ELECTRONIC ERRORS AND OMISSIONS......... 59
15.5. EMPLOYEE DISHONESTY AND COMPUTER FRAUD........................................................ 60
15.6. PROPERTY INSURANCE............................................................................ 60
15.7. GENERAL PROVISIONS............................................................................ 60
15.7.1. Evidence of Insurance................................................................ 60
15.7.2. "Claims-Made Coverage"............................................................... 60
15.7.3. Notice of Cancellation or Change of Coverage......................................... 61
16. INVOICES AND REPORTS................................................................................. 61
16.1. INVOICES...................................................................................... 61
16.1.1. General.............................................................................. 61
16.1.2. Fee-Reductions....................................................................... 62
16.1.3. Other Services....................................................................... 62
16.1.4. Initiatives.......................................................................... 62
16.2. REPORTS....................................................................................... 62
16.2.1. General.............................................................................. 62
16.2.2. Media................................................................................ 62
17. RECORDKEEPING AND AUDIT RIGHTS....................................................................... 63
17.1. RECORDKEEPING................................................................................. 63
17.2. OPERATIONAL AUDIT RIGHTS...................................................................... 63
18. LEGAL COMPLIANCE..................................................................................... 64
18.1. COMPLIANCE WITH ALL LAWS AND REGULATIONS...................................................... 64
18.2. EDS PERMITS AND LICENSE....................................................................... 64
18.3. HAZARDOUS MATERIALS........................................................................... 64
19. REPRESENTATIONS AND WARRANTIES....................................................................... 65
19.1. EDS REPRESENTATIONS, WARRANTIES, AND RELATED COVENANTS........................................ 65
19.1.1. Performance of the Services.......................................................... 65
19.1.2. Conflict of Interest................................................................. 65
19.1.3. Financial Condition and Information.................................................. 66
19.1.4. Litigation and Service of Process.................................................... 67
19.1.5. Proprietary Rights Infringement...................................................... 67
19.1.6. Legal and Corporate Authority........................................................ 67
- ----------------------------------------------------------------------------- KELLWOOD COMPANY / ELECTRONIC DATA SYSTEMS CORPORATION IT SERVICE AGREEMENT
PAGE 5
19.1.7. Violations........................................................................... 68
19.1.8. Information Furnished to Kellwood.................................................... 68
19.1.9. Previous Contracts................................................................... 68
19.2. KELLWOOD'S REPRESENTATIONS, WARRANTIES, AND COVENANTS......................................... 68
19.2.1. Legal Authority...................................................................... 68
19.2.2. Disclaimer........................................................................... 68
19.2.3. Information Furnished to EDS......................................................... 69
19.3. WARRANTY DISCLAIMER........................................................................... 69
19.4. WAIVER........................................................................................ 69
20. INDEMNIFICATION...................................................................................... 69
20.1. BY EDS........................................................................................ 69
20.1.1. Technology........................................................................... 69
20.1.2. Injury, Property, or Other Damage.................................................... 70
20.1.3. Third-Party Contracts................................................................ 70
20.1.4. [confidential treatment requested]................................................... 70
20.1.5. Hazardous Material................................................................... 71
20.1.6. Proprietary Information Disclosure................................................... 71
20.2. BY KELLWOOD................................................................................... 71
20.2.1. Technology........................................................................... 71
20.2.2. Third-Party Contracts................................................................ 71
20.2.3. Hazardous Materials.................................................................. 72
20.2.4. Injury, Property or Other Damage..................................................... 72
20.3. WAIVER OF SUBROGATION......................................................................... 72
20.4. GENERAL OBLIGATION............................................................................ 72
21. DISPUTE RESOLUTION................................................................................... 73
21.1. RESOLUTION PROCESS................ ...
*End of Preview*
Click the 'Add to Cart' button to download the complete and formatted agreement.