Exhibit 10.11
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________________________________________________________________________________
OUTSOURCING AGREEMENT
BY AND BETWEEN
MARSHALL & ILSLEY CORPORATION
acting on behalf of its Subsidiaries and Affiliates
and
METAVANTE CORPORATION
DATED AS OF
July 1, 2000
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TABLE OF CONTENTS
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Page
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1. DEFINITIONS............................................................................ 1
1.1 Definitions........................................................................ 1
1.2 References......................................................................... 1
1.3 Interpretation..................................................................... 1 2. TERM................................................................................... 1
2.1 Initial Term....................................................................... 1
2.2 Extensions......................................................................... 1 3. APPOINTMENT............................................................................ 1
3.1 Performance by Metavante Affiliates or Subcontractors.............................. 1
3.2 Third Party Products/Services...................................................... 1
3.3 Proper Instructions................................................................ 1 4. INTENTIONALLY OMITTED.................................................................. 1 5. SERVICES............................................................................... 1
5.1 Banking Application Services....................................................... 1
5.2 e-Pathway and Retail Delivery Services............................................. 2
5.3 Electronic Funds Delivery.......................................................... 2
5.4 New Services....................................................................... 2
5.5 Trust Services..................................................................... 2 6. FEES................................................................................... 2
6.1 Fee Structure...................................................................... 2
6.2 Pricing and Operational Assumptions................................................ 2
6.3 EFD Services....................................................................... 2
6.4 Training and Education............................................................. 2
6.5 Excluded Costs..................................................................... 2
6.6 Disputed Amounts................................................................... 3
6.7 Terms of Payment................................................................... 3
6.8 Modification of Terms and Pricing.................................................. 3 7. PERFORMANCE WARRANTY/EXCLUSIVE REMEDY/DISCLAIMER OF ALL OTHER WARRANTIES............... 3
7.1 Performance Warranty............................................................... 3
7.2 Performance Standards.............................................................. 3
7.3 Performance Warranty Exclusions.................................................... 3
7.4 Notice of and Correction of Defects................................................ 3
7.4 Backup Remedy...................................................................... 3
7.5 DISCLAIMER OF ALL OTHER WARRANTIES................................................. 3 8. MODIFICATION OR PARTIAL TERMINATION.................................................... 3
8.1 Modifications to Services.......................................................... 3
8.2 PARTIAL TERMINATION BY............................................................. 3
8.3 Partial Termination by Customer.................................................... 4
8.4 Ownership and Proprietary Rights................................................... 4 9. TERMINATION............................................................................ 4
9.1 Early Termination.................................................................. 4
9.2 For Cause.......................................................................... 4
9.3 For Insolvency..................................................................... 4
9.4 For Force Majeure.................................................................. 4
9.5 For Assignment..................................................................... 4 10. SERVICES FOLLOWING TERMINATION......................................................... 4 10.1 Termination Assistance............................................................. 4 10.2 Continuation of Services........................................................... 4
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11. LIMITATION OF LIABILITY/MAXIMUM DAMAGES ALLOWED........................................ 4 11.1 Equitable Relief.................................................................... 4 11.2 Exclusion of Incidental and Consequential Damages................................... 4 11.3 Maximum Damages Allowed............................................................. 5 11.4 Statute of Limitations.............................................................. 5 11.5 Economic Loss Waiver................................................................ 5 11.6 Liquidated Damages.................................................................. 5 11.7 Essential Elements.................................................................. 5 12. INSURANCE AND INDEMNITY................................................................ 5 12.1 Insurance........................................................................... 5 12.2 Indemnity........................................................................... 5 12.3 Indemnification Procedures.......................................................... 5 13. DISPUTE RESOLUTION..................................................................... 5 13.1 Representatives of Parties.......................................................... 6 13.2 Arbitration......................................................................... 6 13.3 Continuity of Performance........................................................... 6 14. AUTHORITY.............................................................................. 6 14.1 By.................................................................................. 6 14.2 By Customer......................................................................... 6 15. CONFIDENTIALITY AND OWNERSHIP.......................................................... 6 15.1 Customer Data....................................................................... 6 15.2 Metavante Systems................................................................... 6 15.3 Confidential Information............................................................ 6 15.4 Obligations of the Parties.......................................................... 6 15.5 Security............................................................................ 6 16. MANAGEMENT OF PROJECT.................................................................. 7 16.1 Account Representatives............................................................. 7 16.2 Development Projects and Technical Support.......................................... 7 17. REGULATORY COMPLIANCE.................................................................. 7 18. DISASTER RECOVERY...................................................................... 8 18.1 Services Continuity Plan............................................................ 8 18.2 Relocation.......................................................................... 8 18.3 Resumption of Services.............................................................. 8 18.4 Annual Test......................................................................... 8 19. GENERAL TERMS AND CONDITIONS........................................................... 8 19.1 Transmission of Data................................................................ 8 19.2 Equipment and Network............................................................... 8 19.3 Reliance on Data.................................................................... 8 19.4 Data Backup......................................................................... 8 19.5 Balancing and Controls.............................................................. 8 19.6 Use of Services..................................................................... 8 19.7 Regulatory Assurances............................................................... 8 19.8 IRS Filing.......................................................................... 9 19.9 Affiliates.......................................................................... 9 19.10 Future Acquisitions............................................................... 9 20. MISCELLANEOUS PROVISIONS............................................................... 9 20.1 Governing Law....................................................................... 9 20.2 Venue and Jurisdiction.............................................................. 9 20.3 Entire Agreement; Amendments........................................................ 9 20.4 Assignment.......................................................................... 9 20.5 Relationship of Parties............................................................. 10
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20.6 Notices............................................................................. 10 20.7 Headings............................................................................ 10 20.8 Counterparts........................................................................ 10 20.9 Waiver.............................................................................. 10 20.10 Severability........................................................................ 10 20.11 Attorneys' Fees and Costs........................................................... 10 20.12 Publicity........................................................................... 10 20.13 No Third Party Beneficiaries........................................................ 10 20.14 Force Majeure....................................................................... 11 20.15 Construction........................................................................ 11 20.16 Waiver of Jury Trial................................................................ 11 20.17 Nonsolicitation..................................................................... 11
Schedules
1.1 Definitions 1.2 Customer Affiliates 5.1A Core Services 5.1B Loan Origination Services 5.1C Connectware 5.1D ACH Services 5.1E Data Warehouse Services 5.1F Credit Services 5.2A DirectPC Services 5.2B Consumer Internet Banking Services 5.2D Business E-Banking Services 5.2E Cash Express Services 5.2F Payment Processing Services 5.3A Card Services 5.3B EFD Services 5.3C Merchant E-Commerce Services 5.5 Trust Services 6.1 Fee Schedule 7.1 Performance Standards 9.1 Termination Fee
Exhibits --------
A Attorney-in-Fact Appointment B Affidavit
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OUTSOURCING AGREEMENT
This Outsourcing Agreement ("Agreement") is made as of the 1st day of July, 2000, by and between Marshall & Ilsley Corporation, a Wisconsin corporation ("Customer") and Metavante Corporation, a Wisconsin corporation ("Metavante").
In consideration of the payments to be made and services to be performed hereunder, the parties agree as follows:
1. DEFINITIONS
1.1. Definitions. The defined terms of this Agreement shall have the
----------- meaning ascribed to them on attached Schedule 1.1.
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1.2. References. In this Agreement and the schedules and exhibits
---------- attached hereto, which are hereby incorporated and deemed a part of this Agreement, references and mention of the word "include" and "including" shall mean "includes, without limitation" and "including, without limitation," as applicable.
1.3. Interpretation. In the event of a conflict between this Agreement
-------------- and the terms of any exhibits and schedules attached hereto, the terms of the schedules and exhibits shall prevail and control the interpretation of the Agreement. The exhibits and schedules together with the Agreement shall be interpreted as a single document.
2. TERM
2.1. Initial Term. This Agreement shall commence on the Effective Date
------------ and end on the seventh (7/th/) anniversary of the last day of the month in which the Effective Date occurs ("Initial Term") provided that, during the ninety (90) day period commencing on the fifth (5/th/) anniversary of the last day of the month in which the Effective Date occurs, Customer may terminate this entire Agreement or terminate any of the Services then received by Customer without payment of a Termination Fee upon providing one hundred eighty (180) days written notice to Metavante. Failure to provide timely notice during said ninety (90) day period shall void Customer's option specified above.
2.2. Extensions. Unless this Agreement has been earlier terminated, at
---------- least one (1) year prior to the expiration of the Initial Term, Metavante shall submit to Customer a written proposal for renewal of this Agreement. Customer will respond to such proposal within three (3) months following receipt and inform Metavante in writing whether or not Customer desires to renew this Agreement. If Metavante and Customer are unable to agree upon the terms for renewal of this Agreement at least six (6) months prior to the expiration of the Initial Term, then this Agreement shall be automatically renewed for one (1) twelve-month period under the same terms and conditions, including price. Thereafter, this Agreement shall expire unless further renewed in writing by the parties.
3. APPOINTMENT
3.1. Performance by Metavante Affiliates or Subcontractors. Customer
----------------------------------------------------- understands and agrees that the actual performance of the Services may be made by, and/or software used by Metavante to provide the Services may be licensed from Affiliates of Metavante, or subcontractors of Metavante or its Affiliates (collectively, the "Eligible Providers"). For purposes of this Agreement, performance of the Services by any Eligible Provider shall be deemed performance by Metavante itself. Metavante shall remain fully responsible for the performance or non-performance of each Eligible Provider under this Agreement, to the same extent if Metavante itself performed or failed to perform such services. Customer agrees to look solely to Metavante, and not to any Eligible Providers, for satisfaction of any claims Customer may have arising out of or in connection with this Agreement or the performance or non-performance of Services.
3.2. Third Party Products/Services. The parties acknowledge that certain
----------------------------- services and products necessary for the performance of the Services are being, and in the future may be, provided by Third Parties who will contract directly with Customer,. Metavante shall have no liability to Customer for information and products supplied by, or services performed by, such Third Parties in conjunction with the Services.
3.3. Proper Instructions. "Proper Instructions" shall mean those
------------------- instructions sent to Metavante by letter, memorandum, telegram, cable, telex, telecopy facsimile, computer terminal, e-mail or other "on line" system or similar means of communication or given orally over the telephone or given in person by one or more of the person(s) whose name(s) and signature(s) are listed on the most recent certificate delivered by Customer to Metavante which lists those persons authorized to give orders, corrections and instructions in the name of and on behalf of Customer. Proper Instructions shall specify the action requested to be taken or omitted.
4. INTENTIONALLY OMITTED
5. SERVICES Metavante agrees to provide Customer with the Services in accordance with the applicable User Manuals and this Agreement.
5.1. Banking Application Services
A Core Services. Metavante agrees to provide Customer with
------------- the Core Services in accordance with the applicable Core Services User Manuals and this Agreement.
B Loan Origination Services. Metavante agrees to provide
------------------------- Customer with the Loan Origination Services in accordance with the applicable User Manuals, this Agreement and Schedule 5.1B.
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C Connectware. Metavante agrees to provide Customer with the
----------- Connectware services in accordance with the Connectware services manuals, this Agreement and Schedule 5.1C.
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D Automated Clearing House Services. Metavante agrees to
--------------------------------- provide Customer the automated clearinghouse services ("ACH Services") subject to the terms and conditions set forth on attached Schedule 5.1D.
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E Data Warehouse Services. Metavante agrees to provide
----------------------- Customer the data warehouse services ("Data Warehouse Services") subject to the terms and conditions set forth on attached Schedule 5.1E.
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F Credit Services. Metavante agrees to provide Customer the
--------------- credit services ("Credit Services") subject to the terms and conditions set forth on attached Schedule 5.1F.
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5.2. e-Pathway and Retail Delivery Services
A DirectPC Services. The consumer account accessibility, fund
------------------ transfer, account balance inquiry, bill payment and other remote access banking services to be provided by Metavante, via telephone or personal computer ("DirectPC Services") shall be subject to the terms and conditions set forth on attached Schedule 5.2A.
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B Consumer Internet Banking Services. The consumer account
---------------------------------- accessibility, fund transfer, account balance inquiry, bill payment and other remote access banking services to be provided by Metavante, via the Internet ("Internet Banking Services") shall be subject to the terms and conditions set forth on attached Schedule 5.2B
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C Branch Automation Systems. Metavante agrees to provide the
------------------------- licenses, products, interfaces and network management associated with the automation of Customer's branch offices, in accordance with the Branch Automation Agreement.
D Business E-Banking Services. The business account
--------------------------- accessibility, fund transfer, account balance inquiry, bill payment, and other remote accessibility services to be provided by Metavante, via personal computer software or the Internet ("Business E-Banking") shall be subject to the terms and conditions set forth on attached Schedule 5.2D.
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E Cash Express Services. The business customer account
--------------------- reconciliation, cash concentration, data interchange and related services to be provided by Metavante ("Cash Express Services") shall be subject to the terms of Schedule 5.2E. -------------
F Payment Processing Services. The payment processing services to
--------------------------- be provided by Metavante ("Payment Processing Services") shall be subject to the terms of Schedule 5.2F.
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5.3. Electronic Funds Delivery
A Card and Merchant Accounts. The card and merchant account
-------------------------- services ("Card Services") to be provided by Metavante shall be subject to the terms and conditions set forth on attached Schedule 5.3A
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B EFD Services. The electronic funds delivery services ("EFD
------------ Services") to be provided by Metavante shall be subject to the terms and conditions set forth on attached Schedule 5.3B
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C Merchant E-Commerce Services. The credit card merchant e-
---------------------------- commerce website development and hosting services ("Merchant E-Commerce Services") to be provided by Metavante shall be subject to the terms of Schedule
-------- 5.3C. ----
5.4. New Services. If Customer wishes to receive any New Service which is included in Metavante's then-current product offerings, Customer shall notify Metavante and the parties shall implement the same in accordance with a mutually acceptable schedule. If the New ServiceCustomer desires for Metavante to develop a New Service which is not included in Metavante's then-current product offerings, Customer shall submit a written request to Metavante in accordance with Section 16.2A of this Agreement. Nothing contained herein shall obligate Customer to obtain any New Service from Metavante. Metavante agrees to reasonably cooperate with Customer or any Third Party designated by Customer for the purpose of developing interfaces to the Metavante System. Such cooperation may include, without limitation, licensing Customer or such Third Party to use Metavante' application program interface specifications or interface software at Metavante' then-current standard rate. Metavante may require any Third Party to execute a confidentiality agreement prior to sharing information regarding the Metavante System.
5.5. Trust Services. Metavante agrees to provide Customer the Trust Services in accordance with attached Schedule 5.5.
------------ 6. FEES
6.1. Fee Structure. Schedule 6.1 attached hereto (the "Fee Schedule") sets
------------- ------------ forth the costs and charges for the Services and Customer agrees to pay Metavante the fees specified in the Fee Schedule for the Services rendered by Metavante. These costs and charges are included in one or more of the following categories:
A a minimum monthly fee for certain recurring, aggregated data processing services based on stated volumes (the "Monthly Base Fee"); actual volumes in excess of stated volumes shall result in additional charges as further described in the Fee Schedule; and
B an hourly or daily fee for programming, training and related Services not included in the Monthly Base Fee requested by Customer.
6.2. Pricing and Operational Assumptions. The Fee Schedule sets forth the
----------------------------------- operational and pricing assumptions made by Metavante. If the parties determine that one or more of the pricing or operational assumptions listed in the Fee Schedule is inaccurate or incomplete in any material respect, the parties will negotiate in good faith regarding an equitable adjustment to any materially and adversely impacted provisions of this Agreement.
6.3. EFD Services. In addition to the charges specified on the Fee
------------ Schedule, Customer shall be responsible for all interchange and network provider fees and all dues, fees and assessments established by and owed to Visa and/or MasterCard for the processing of Customer's transactions, and for all costs and fees associated with changes to ATM (as defined in Schedule 5.3B ) protocol
------------- caused by Customer's use of the EFD Services.
6.4. Training and Education. Metavante will provide to Customer, at no
---------------------- charge, one set of each of the User Manuals in electronic format, or if not available, two (2) hard copies. When the User Manuals are updated, Metavante will provide the updates to Customer at no additional charge. Customer may make additional copies of such User Documentation for its internal use only.
6.5. Excluded Costs. The fees set forth in the Fee Schedule do not include
-------------- shipping and courier costs, telecommunication charges, LU charges, Expenses, Third Party pass-through charges, workshop fees, training fees, late fees or charges and Taxes, which shall be the responsibility of Customer.
6.6. Disputed Amounts. If Customer disputes any charge or amount on any
---------------- invoice and such dispute cannot be resolved promptly through good faith discussions between the parties, Customer shall pay the amounts due under this Agreement less the disputed amount, and the parties shall diligently proceed to resolve such disputed amount. An amount will be considered disputed in good faith if (i) Customer delivers a written statement to Metavante on or before the due date of the invoice, describing in detail the basis of the dispute and the amount being withheld by
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Customer, (ii) such written statement represents that the amount in dispute has been determined after due investigation of the facts and that such disputed amount has been determined in good faith, and (iii) all other amounts due from Customer that are not in dispute have been paid in accordance with the terms of this Agreement.
6.7. Terms of Payment. All "one-time" fees shall be paid to Metavante as
---------------- set forth in the Fee Schedule. All other amounts due hereunder shall be paid within ten (10) days of invoice, unless otherwise provided in the Fee Schedule. Undisputed charges not paid by the due date shall be subject to annual interest at the rate of 12% or the highest rate permitted by law, whichever is lower. Customer shall also pay any collection fees, court costs and reasonable attorneys' fees incurred by Metavante in collecting payment of the charges and any other amounts for which Customer is liable under the terms and conditions of this Agreement.
6.8. Modification of Terms and P ...
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