Data Management Outsourcing Agreement - Allstate Insurance Co. and Acxiom Corp

7/9/2015
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DATAMANAGEMENT
OUTSOURCINGAGREEMENT
BETWEEN
ALLSTATEINSURANCECOMPANY
AND
ACXIOMCORPORATION
CONFIDENTIALDRAFT
DONOTREDISTRIBUTE
March19,1999
Version5.0.0
SUMMARYTABLEOFCONTENTS
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SUMMARYTABLEOFCONTENTS.................................................II
DETAILEDTABLEOFCONTENTS................................................IV
INDEXOFDEFINEDTERMS....................................................IX
LISTOFSCHEDULES.........................................................XI
1.BACKGROUNDANDPURPOSE................................................1
2.DEFINITIONS...........................................................1
3.SERVICES..............................................................8
4.MASLS.................................................................9
5.ACXIOMRESOURCES......................................................10
6.SECURITYOBLIGATIONS..................................................11
7.ALLSTATERETAINEDAUTHORITYANDOBLIGATIONS...........................11
8.FINANCIALTERMS.......................................................12
9.RELATIONSHIPMANAGEMENT...............................................20
10.PROPRIETARYRIGHTS;OWNERSHIPOFWORKPRODUCT.........................23
11.TERM..................................................................25
12.DISENTANGLEMENT.......................................................26
13.DEFAULT...............................................................28
14.INSURANCE.............................................................29
15.REPORTS...............................................................31
16.RECORDKEEPINGANDAUDITRIGHTS........................................32
17.CONFIDENTIALITY.......................................................33
18.LEGALCOMPLIANCE......................................................34
19.REPRESENTATIONSANDWARRANTIES........................................35
20.INDEMNIFICATION.......................................................38
21.DISPUTERESOLUTION....................................................42
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22.PUBLICITY............................................................43
23.USEOFAFFILIATESANDSUBCONTRACTORS.................................44
24.MISCELLANEOUS........................................................44
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DETAILEDTABLEOFCONTENTS
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SUMMARYTABLEOFCONTENTS...............................................II
DETAILEDTABLEOFCONTENTS..............................................IV
INDEXOFDEFINEDTERMS..................................................IX
LISTOFSCHEDULES.......................................................XI
1.BACKGROUNDANDPURPOSE...............................................1
2.DEFINITIONS..........................................................1
2.1.AcxiomCoreSoftware...........................................2
2.2.Acxiom'sContractManager......................................2
2.3.Acxiom'sKeyPersonnel.........................................2
2.4.Acxiom'sPersonnel.............................................2
2.5.Affiliate......................................................2
2.6.Agreement......................................................2
2.7.AllstateSoftware..............................................2
2.8.Allstate'sContractManager....................................3
2.9.Allstate'sData................................................3
2.10.Allstate'sKeyPersonnel.......................................3
2.11.BenchmarkPrice................................................3
2.12.ConfidentialInformation.......................................3
2.13.CurrentProjects...............................................4
2.14.DataAcquisitionCost("DAC")..................................4
2.15.DataAcquisitionSystem("DAS")................................4
2.16.DataIntegrity.................................................4
2.17.EffectiveDate.................................................4
2.18.EndUser.......................................................4
2.19.FeeReduction..................................................5
2.20.ForceMajeureEvent............................................5
2.21.Indemnitees....................................................5
2.22.Masl...........................................................5
2.23.MaterialDefault...............................................5
2.24.Party..........................................................6
2.25.Person.........................................................6
2.26.Problem........................................................7
2.27.ProblemReport.................................................7
2.28.Services.......................................................7
2.29.Software.......................................................7
2.30.Term...........................................................7
2.31.ThirdpartyDataProviders.....................................7
2.32.TotalDataCostSavings("TDCS")...............................8
2.33.WorkOrder.....................................................8
2.34.WorkProduct...................................................8
3.SERVICES.............................................................8
3.1.ProvisionOfServices...........................................8
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3.2.CurrentProjects................................................8
3.3.DataAcquisitionandRelatedServices...........................9
3.4.FutureProjects.................................................9
3.5.[INTENTIONALLYLEFTBLANK]......................................9
3.6.BusinessResumptionServices....................................9
3.7.DataIntegrityServices.........................................9
4.MASLS................................................................9
4.1.SpecificationofMASLs..........................................9
4.2.MASLMeasurementandReporting..................................9
4.3.ImprovementinMASLs............................................10
4.4.TemporarySuspensionofMASLs...................................10
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4.4.TemporarySuspensionofMASLs...................................10
5.ACXIOMRESOURCES.....................................................10
5.1.General.........................................................10
5.2.UseofDataAcquisitionSystem..................................10
5.3.UseofDataNetwork.............................................11
5.4.NonExclusivity.................................................11
6.SECURITYOBLIGATIONS.................................................11
7.ALLSTATERETAINEDAUTHORITYANDOBLIGATIONS..........................11
7.1.AllstateAuthority..............................................11
7.2.AccesstoPersonnelandInformation.............................12
8.FINANCIALTERMS......................................................12
8.1.DataAcquisitionFees...........................................12
8.2.SharedSavingsDataAcquisitionCosts.........................12
8.2.1.TotalDataCostSavings....................................12
8.2.2.DeterminationofBenchmarkPrice...........................12
8.2.3.EffectofSupplierPriceChangesonTDCS...................13
8.3.SharedSavingsOtherCosts....................................13
8.4.DataNetworkCosts..............................................14
8.5.PricingAudit...................................................14
8.6.Taxes...........................................................15
8.7.ServicesBenchmarking...........................................15
8.8.OutofScopeServicesRateChart................................15
8.9.FeeReductions..................................................16
8.10.OnlyPayments..................................................17
8.11.Invoices.......................................................18
8.11.1.DataAcquisitionCosts....................................18
8.11.2.OtherCharges.............................................18
8.11.3.FrequencyandFormat......................................18
8.11.4.DisputedAmounts..........................................19
8.11.5.SetOff...................................................19
8.12.MostFavoredCustomer..........................................19
9.RELATIONSHIPMANAGEMENT..............................................20
9.1.KeyPersonnelandContractManager..............................20
9.1.1.Acxiom'sKeyPersonnelandContractManager................20
9.1.2.Allstate'sKeyPersonnelandContractManager..............20
9.1.3.AdditionalPersonnelRequirements..........................21
9.1.4.MinimumProficiencyLevels.................................21
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9.1.5.Training....................................................21
9.1.6.UnsatisfactoryPerformance..................................21
9.2.Allstate'sPolicies..............................................21
9.2.1.ComputerInformationandAccess.............................22
9.2.2.ConfidentialityandIntellectualProperty...................22
9.2.3.OtherPolicies..............................................22
9.2.4.Enforcement.................................................22
9.3.RegulatoryCompliance............................................22
9.4.OperationalChangeProcedure.....................................22
9.5.WorkOrderProcedure.............................................23
9.5.1.WhenRequired...............................................23
9.5.2.ContentsoftheWorkOrder..................................23
10.PROPRIETARYRIGHTS;OWNERSHIPOFWORKPRODUCT........................23
10.1.RightsandLicenses.............................................24
10.2.AdverseAction..................................................24
11.TERM.................................................................25
11.1.InitialTerm;Renewals..........................................25
11.2.ExtensionofTerminationDate...................................25
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11.2.ExtensionofTerminationDate...................................25
11.3.EarlyTermination...............................................25
11.3.1.PartialTerminationofServicesbyAllstate................25
11.3.2.ForConvenience............................................25
11.3.3.ChangeinControlofAcxiom................................25
11.4.TerminationforMaterialDefault................................26
11.5.TerminationforForceMajeureEvent.............................26
11.6.EffectofEndingofTerm........................................26
12.DISENTANGLEMENT......................................................26
12.1.DisentanglementProcess.........................................26
12.2.PreparationforDisentanglement.................................27
13.DEFAULT..............................................................28
13.1.Remedies........................................................28
13.1.1.Allstate'sRemedies........................................28
13.1.2.Acxiom'sRemedies..........................................28
13.1.3.LimitationofLiabilityandDisclaimers....................29
13.2.ForceMajeureEvents............................................29
14.INSURANCE............................................................29
14.1.GeneralRequirements............................................29
14.2.Coverages.......................................................30
14.3.MiscellaneousRequirements......................................31
15.REPORTS..............................................................31
15.1.General.........................................................31
15.2.Media...........................................................32
16.RECORDKEEPINGANDAUDITRIGHTS.......................................32
16.1.Recordkeeping...................................................32
16.2.AuditRights....................................................33
16.3.OpenBookPolicy................................................33
17.CONFIDENTIALITY......................................................33
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17.1.DisclosureofConfidentialInformation..........................33
17.2.RequiredDisclosure.............................................34
17.3.Notification....................................................34
17.4.InjunctiveRelief...............................................34
17.5.ReturnofConfidentialInformation..............................34
18.LEGALCOMPLIANCE.....................................................34
19.REPRESENTATIONSANDWARRANTIES.......................................35
19.1.Acxiom'sRepresentations,Warranties,andCovenants.............35
19.1.1.PerformanceoftheServices................................35
19.1.2.ProprietaryRightsInfringement............................35
19.1.3.AdherencetoSpecifications................................36
19.1.4.WarrantyastoViruses.....................................36
19.1.5.WarrantyofYear2000Compliance...........................36
19.1.6.LegalandCorporateAuthority..............................37
19.2.Allstate'sRepresentations,WarrantiesandCovenants............37
19.2.1.LegalandCorporateAuthority..............................37
19.2.2.Other......................................................37
20.INDEMNIFICATION......................................................38
20.1.Technology......................................................38
20.1.1.IndemnitybyAcxiom........................................38
20.1.2.IndemnitybyAllstate......................................39
20.2.InjuryorPropertyDamage.......................................39
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20.3.Employees.......................................................39
20.4.ThirdPartyMatters.............................................40
20.4.2.MutualIndemnities.........................................40
20.5.Misrepresentation...............................................40
20.6.Subrogation.....................................................41
20.7.Procedures......................................................41
21.DISPUTERESOLUTION...................................................42
21.1.GeneralIntent..................................................42
21.2.ContractManagerLevel..........................................42
21.3.Escalation......................................................42
21.3.1.FirstEscalation...........................................42
21.3.2.SecondEscalation..........................................42
21.4.CriticalProblems...............................................43
21.5.LegalAction....................................................43
21.6.NoTerminationorSuspensionofServices........................43
22.PUBLICITY............................................................43
23.USEOFAFFILIATESANDSUBCONTRACTORS.................................44
24.MISCELLANEOUS........................................................44
24.1.EntireAgreement................................................44
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24.2.Captions;SectionNumbers......................................44
24.3.Assignment.....................................................45
24.4.NoticestoaParty.............................................45
24.5.Amendments;Waivers............................................46
24.6.LegalStatusofParties........................................46
24.7.Severability...................................................47
24.8.Counterparts...................................................47
24.9.GoverningLaw..................................................47
24.10.NoThirdPartyBeneficiaries...................................47
24.11.Expenses.......................................................48
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INDEXOFDEFINEDTERMS
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A
Acxiom..................................................................1
AcxiomCoreSoftware....................................................1
AcxiomRMT.............................................................1
Acxiom'sContractManager...............................................2
Acxiom'sKeyPersonnel..................................................2
Acxiom'sPersonnel......................................................2
2
Affiliate...............................................................2
Agreement...............................................................2
Allstate................................................................1
AllstateSoftware.......................................................2
Allstate'sContractManager.............................................3
Allstate'sData.........................................................3
Allstate'sKeyPersonnel................................................3
B
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BenchmarkPrice.........................................................3
C
ConfidentialInformation................................................3
CurrentProject.........................................................4
D
DAC.....................................................................4
DAS.....................................................................4
DataIntegrity..........................................................4
DataNetwork............................................................10
Disentanglement.........................................................25
E
EffectiveDate..........................................................4
EndUser................................................................4
F
Failure.................................................................16
FeeReduction...........................................................4
FirstYearSavings......................................................13
ForceMajeureEvent.....................................................5
G
GAAP....................................................................31
I
ImplementationDate.....................................................13
Indemnitees.............................................................5
InfringementClaim......................................................37
M
MASLorMinimumAcceptableServiceLevel................................5
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MaterialDefault........................................................5
MillenialDates.........................................................35
MVR.....................................................................12
O
Optimization............................................................13
P
Parties.................................................................7
Party...................................................................7
Person..................................................................7
PriorAgreements........................................................1
Problem.................................................................7
ProblemReport..........................................................7
Projects................................................................9
PSA.....................................................................1
R
RMToolsAgreement......................................................1
S
Services................................................................7
Software................................................................7
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Software................................................................7
T
TDCS....................................................................8
Term....................................................................7
ThirdPartyDataProviders..............................................8
W
WorkOrder..............................................................8
WorkProduct............................................................8
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LISTOFSCHEDULES
SCHEDULE2.1AcxiomCoreSoftware
SCHEDULE2.8AllstateSoftware
SCHEDULE2.13CurrentProjects
SCHEDULE2.31ThirdPartyDataProviders
SCHEDULE3.3DataAcquisitionandRelatedServices
SCHEDULE3.6BusinessResumptionServices
SCHEDULE3.7DataIntegrityServices
SCHEDULE4.1MinimumAcceptableServiceLevels
SCHEDULE5.1InteractiveDataResourcesProvidedbyAllstate
SCHEDULE6SecurityObligations
SCHEDULE8.1DataAcquisitionFees
SCHEDULE8.2.2DeterminationofBenchmarkPrice
SCHEDULE8.8OutofScopeServicesRateChart
SCHEDULE9.1KeyPersonnelandContractManager
SCHEDULE9.2.1ComputerInformationandAccessForms
SCHEDULE9.2.2ConfidentialityAcknowledgment
SCHEDULE15Reports
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DATAMANAGEMENTOUTSOURCINGAGREEMENT
ThisDataManagementOutsourcingAgreement("Agreement"),datedMarch___,
1999,isacontractbetweenAllstateInsuranceCompany("Allstate"),with
businessofficesatAllstatePlaza,2775SandersRoad,Northbrook,Illinois
60062,andAcxiomRMTools,Inc.("Acxiom"),awhollyownedsubsidiaryofAcxiom
Corporation,withbusinessofficesat301IndustrialBoulevard,P.O.Box2000,
Conway,Arkansas720332000,underwhichAcxiomshallprovide,subjecttothe
guaranteeofAcxiomCorporation,AllstateandAllstate'sAffiliateswithcertain
informationtechnologyservicesonthetermsandconditionssetforthbelow.
Forandinconsiderationofthemutualpromisesandcovenantscontained
herein,thereceipt,sufficiency,andadequacyofwhichareherebyacknowledged,
theParties,intendingtobelegallybound,herebycontractandagreeas
follows:
1.BACKGROUNDANDPURPOSE
AllstateandAcxiomarepresentlypartiestothatcertainAgreementfor
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AllstateandAcxiomarepresentlypartiestothatcertainAgreementfor
ProfessionalServiceseffectiveasofSeptember14,1992asamended(the"PSA")
wherebyAllstateengagedAcxiomtoprovidecertainofAllstate'sinformation
managementfunctionsandmanageAllstate'srelationshipswithcertainthird
partyvendorsofdata.AftertheexecutionofthePSA,AllstateandAcxiom
enteredintothatcertainagreementeffectiveasofJanuary31,1995(the"RM
ToolsAgreement"and,withthePSA,the"PriorAgreements")wherebyAcxiom
agreedtoremarketcertaincomputersoftwareandrelatedservicestothe
insuranceindustryandAllstateagreedtoprovidecertaincomputersoftwareand
servicestoAcxiominsupportofAcxiom'sremarketingeffort.Allstatewishesto
continuereceivingservicesfromAcxiom,andAcxiomwishestocontinueproviding
suchservicestoAllstateandAllstate'sAffiliates;accordingly,theparties
havenegotiatedandagreedupontherevisedandupdatedtermsandconditionsset
forthinthisAgreement.ThePartiesmutuallyacknowledgeandagreethatthis
AgreementreplacesandsupersedesthetermsandconditionsofthePSAwhichis
herebyterminatedasoftheEffectiveDatehereof,provided,however,thatsuch
termination(i)shallnotapplytoanytermsorconditionsthereof,whichby
theirterms,surviveterminationofsuchagreementand(2)shallnotterminate
anyproprietaryrightsthataroseasaresultofperformanceofsuchcontracts.
ThePartiesfurtheragreethattheRMToolsAgreementshallremaininfullforce
andeffectuntilsuchtimeasthey,negotiatingingoodfaithandaspromptlyas
practicable,shallenterintoanewagreementrelatingtothesubjectmatterof
theRMToolsAgreement.
2.DEFINITIONS
Thefollowingwordsandphrases,whenusedinthisAgreement,shallhave
theindicatedmeanings.(Termscapitalizedwithinaparticulardefinitionhave
beendefinedelsewherewithinthisAgreement.)
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2.1.AcxiomCoreSoftware
"AcxiomCoreSoftware"shallmeanthecomputerprograms,
documentation,andrelateditemspresentlyownedbyAcxiomthatareset
forthinSchedule2.1.ItisunderstoodandagreedthatthePartiesshall
updateSchedule2.1bymutualagreementonaquarterlybasis.
2.2.Acxiom'sContractManager
"Acxiom'sContractManager'"shallmean,initially,theindividual
whoissodesignatedinSchedule9.1hereto.
2.3.Acxiom'sKeyPersonnel
"Acxiom'sKeyPersonnel'"shallmean,initially,thosepersonneland
positionssodesignatedinSchedule9.1hereto.
2.4.Acxiom'sPersonnel
"Acxiom'sPersonnel'"shallmeananyofAcxiom'semployees,
officers,directors,subcontractorsoragentsinvolvedintheprovisionof
servicestoAllstatepursuanttothisAgreement.
2.5.Affiliate
"Affiliate"shallmean,astoanyPerson,anyotherPersonthat,
directlyorindirectly,controls,iscontrolledby,isundercommoncontrol
withsuchPerson,whetherthroughownershipofvotingsecuritiesor
otherwise.Forthispurpose,andwithoutlimitingtheforegoing,(a)any
Personorgroupofpersonsowningmorethanfiftypercent(50%)ofthe
outstandingvotingsecuritiesofanyotherPersonshallbedeemedto
controlsuchotherPersonand(b)anyPersonhavingtherighttodirectthe
managementandpoliciesofanyotherpersonshallbedeemedtocontrolsuch
otherperson.
2.6.Agreement
"Agreement"shallmeanthisDataManagementOutsourcingAgreement
betweenAllstateandAcxiomdatedMarch___,1999,asamendedfromtimeto
time,includingallattachments,exhibits,andschedulesheretoandWork
OrdersenteredintopursuanttothisAgreement.
2.7.AllstateSoftware
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2.7.AllstateSoftware
"AllstateSoftware"shallmeanthecomputerprograms,documentation,
andrelateditemspresentlyownedbyAllstatethataresetforthin
Schedule2.7andanyfuturecomputerprograms,documentation,andrelated
itemsthatareacquiredbyordevelopedforAllstateforuseinconnection
withtheServices.Itisunderstoodand
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agreedthatthePartiesshallupdateSchedule2.8bymutualagreementona
quarterlybasis
2.8.Allstate'sContractManager
"Allstate'sContractManager'"shallmean,initially,theindividual
whoissodesignatedinSchedule9.1hereto.
2.9.Allstate'sData
"Allstate'sData'"shallmeanthedataprovidedbyAllstate,Acxiom,
orathirdpartyforprocuringandusebyAcxiominconnectionwiththe
provisionoftheServices.
2.10.Allstate'sKeyPersonnel
"Allstate'sKeyPersonnel'"shallmean,initially,thosepersonnel
whoaresodesignatedinSchedule9.1hereto.
2.11.BenchmarkPrice
"BenchmarkPrice"shallhavethemeaninggiventoitinSection
8.2.2hereof.
2.12.ConfidentialInformation
"ConfidentialInformation"shallmean:
(a)astoeitherParty,alltechnicalinformation,materials,data,
reports,programs,documentation,diagrams,ideas,concepts,
techniques,processes,inventions,knowledge,knowhow,and
tradesecrets,whetherintangibleorintangibleform,and
whetherinwrittenformorreadablebymachine,developedor
acquiredbysuchParty,exceptforWorkProduct;
(b)astoeitherParty,allinformationanddatarelatingtosuch
Party'spractices,customers,products,business,costs,or
marginsthatisnotgenerallyknownbyothersinthesameline
ofbusiness;
(c)astoeitherParty,anyinformationthatsuchPartyidentifies
totheotherasconfidentialbyastamporothersimilar
notice;
(d)astoeitherParty,thisAgreement:
(e)astoeitherParty,allotherinformationrelatingtosuch
Partythatareasonablyprudenttechnicianwouldexpectnotto
bemadeavailabletothirdpartieswithoutrestrictionor
payment;and
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(f)astoAllstate,allWorkProduct.
ConfidentialInformationshallnotincludeinformationthataParty
candemonstratewas:(i)atthetimeofdisclosuretosuchParty,inthe
publicdomainorcommonlyknownineitherParty'sindustry;(ii)after
disclosuretosuchParty,publishedorotherwiseapartofthepublic
domainthroughnofaultofsuchParty;(iii)inthepossessionofsuch
Partyatthetimeofdisclosuretoit,ifsuchPartywasnotthenunderan
obligationofconfidentialitywithrespectthereto;(iv)receivedafter
disclosuretosuchPartyfromathirdpartywhohadalawfulrightto
disclosesuchConfidentialInformationtoit;or(v)independently
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disclosesuchConfidentialInformationtoit;or(v)independently
developedbysuchPartywithoutreferencetoConfidentialInformationof
theotherParty.
2.13.CurrentProjects
"CurrentProjects"shallmeanthoseinformationtechnologyrelated
developmentprojectsthatAcxiomiscurrentlyperformingforAllstateor
thatareinprogressasoftheEffectiveDateandaresetforthinSchedule
2.13hereto.
2.14.DataAcquisitionCost("DAC")
DataAcquisitionCost("DAC")shallmeanthepricechargedfordata
bytheprimarysupplierofsuchdata,includinganysupplierimposed
surcharges.
2.15.DataAcquisitionSystem("DAS")
DataAcquisitionSystem("DAS")shallmeanthehighlyintegrated
systemofsoftwareprogramsandprocessesdevelopedbyAcxiomandAllstate
pursuanttothePSAtosupportAllstate'scustomerfocusedinformation
needs.
2.16.DataIntegrity
"DataIntegrity"shallmeantheobjectivelymeasuredaccuracyand
consistencyofacquiredorpurchaseddataasdeterminedinaccordancewith
themethodsdescribedinSchedule3.7.
2.17.EffectiveDate
"EffectiveDate"shallbeApril1,1999,andshallmeanthedateon
whichthisAgreementbecomeseffective.
2.18.EndUser
"EndUser"shallmeananyPersonauthorizedbyAllstatetorequest
anyServicesfromAcxiom.
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2.19.FeeReduction
"FeeReduction"shallmeantheamountdeterminedpursuanttoSection
8.9hereofthatisthepricereductionforaFailure,asdefinedtherein.
2.20.ForceMajeureEvent
"ForceMajeureEvent"shallmeananactofGod,actofgovernmental
bodyormilitaryauthority,fire,explosion,powerfailure,flood,
epidemic,riotorcivildisturbance,war,sabotage,accidents,
insurrections,blockades,embargoes,storms,labordisputes,orsimilar
event;provided,however,that"ForceMajeureEvent"expresslyexcludesthe
following:anyeventthatAcxiomcouldreasonablyhaveprevented.
2.21.Indemnitees
"Indemnitees"shallmean,withrespecttoaPartyentitledto
indemnificationhereunder,suchPartyanditsAffiliates,andtheir
respectiveofficers,directors,employees,agents,successors,andassigns.
2.22.MASL
"MASL,"whichistheacronymfor"minimumacceptableservicelevel,"
shallmean,astoeachtaskorserviceforwhichaMASLisspecifiedin
thisAgreement,theMASLsospecifiedforsuchtaskorservice.
2.23.MaterialDefault
"MaterialDefault"shallmeantheoccurrenceofanyofthe
following:
(a)anymaterialfailurebyAcxiomtoprovidetheServicesin
accordancewithanapplicableMASL,ifAcxiomfailstouse
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accordancewithanapplicableMASL,ifAcxiomfailstouse
reasonableeffortstocorrectsuchfailureorif,
notwithstandingAcxiom'sreasonableefforts,suchfailurehas
notbeencorrectedwithinten(10)businessdaysafterAcxiom
hasreceivedwrittennoticeofsuchfailurefromAllstate.(For
purposesofthisdefinition,thewords"correct"and
"corrected"shallincludeimplementationofaworkaroundor
similartemporarymeasures,providedthatAcxiomcontinuesits
besteffortstopursueandpromptlyimplementafulland
completecure);
(b)acommissionbyeitherPartyofamaterialbreachofany
obligationtotheotherPartyunderSection9(Relationship
Management)hereof,Section10(ProprietaryRights;Ownership
ofWorkProduct)hereoforSection17(Confidentiality)hereof,
providedthatsuchbreach,ifcurable,isnotcuredwithinten
(10)businessdaysaftersuchbreach;
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(c)theexistenceofanymaterialrepresentationorwarrantymade
inthisAgreementbyeitherPartythatwasmateriallyfalse
whenmade;provided,however,thatifsuchmaterial
misrepresentationiscurableandsuchcurewillfullyand
completelyeffectaresolutionreasonablyacceptabletothe
otherParty,thereshallnotbeaMaterialDefaultifthe
misrepresentationiscuredwithinthirty(30)daysafterthe
Partythathasmadethematerialmisrepresentationhasbeen
notifiedbytheotherPartyofthefalsityofthe
representation;
(d)insolvencyofaParty;generalfailureofaPartytopayits
debtsastheybecomedue;entranceofaPartyintoreceivership
oranyarrangementorcompositionwithcreditorsgenerally;
filingofavoluntaryorinvoluntarypetitionorotheraction
orproceedingforbankruptcyorreorganizationordissolution
orwindingupofaParty;ageneralassignmentforthebenefit
ofcreditorsofaParty;oraseizureorasaleofamaterial
partofaParty'spropertybyorforthebenefitofany
creditororgovernmentalagency;
(e)anassignmentorattemptedassignmentinviolationofSection
24.3hereof;or
(f)afailurebyeitherPartytoobserveandperformanyother
materialobligation,covenant,orconditionunderthis
Agreementand,incaseswherethebreachdoesnotinvolvea
materialviolationoflawrelatingtooraffectingthe
provisionofServices:(i)thefailurebythebreachingParty
tocuresuchdefaultwithinthirty(30)daysafterthe
breachingPartyhasreceivednoticeofsuchdefault;or,(ii)
ifthefailureisnotonethatcouldbecorrectedwithuseof
besteffortswithinthirty(30)days,thefailurebythe
breachingPartytoadoptaplantocurewithinthirty(30)days
andtocurewithinsixty(60)days.(Forpurposesofthis
definition,theword"cure"shallincludeimplementationofa
workaroundorsimilartemporarymeasures,providedAcxiom
continuesitsbesteffortstopursueandpromptlyimplementa
fullandcompletecure).
2.24.Party
"Party"shallmeanAllstateorAcxiom;"Parties"shallmeanbothof
them.
2.25.Person
"Person"shallmeananynaturalperson,corporation,limited
liabilitycompany,partnership,trust,association,orotherlegalperson
orentityofanykind,legallyconstituted.
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2.26.Problem
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2.26.Problem
"Problem"shallmeananyproblemorcircumstancethatresultsfrom
anyofthefollowing:
(a)aperceivedfailurebyeitherPartytoperformitsobligations
underthisAgreement;
(b)aperceivedinadequacyordelayofeitherParty'sperformance
underthisAgreement;or
(c)arequestforproducts,services,orresourceswherethe
Partiesdisagreeastowhethersuchproducts,services,or
resourcesarewithinthescopeofthisAgreement.
2.27.ProblemReport
"ProblemReport"shallmeanawrittenreportexecutedbyboth
PartiesdescribingasolutiontoaProblem.
2.28.Services
"Services"shallmean,collectively,alloftheservicestobe
performedbyAcxiompursuanttoSection3.3hereof.
2.29.Software
"Software"shallmeananysoftwaredevelopedorprocuredbyAcxiom
andusedinconnectionwiththeprovisionoftheServicestoAllstate
hereunder.Softwareshallincludeallsoftwareusedinconnectionwiththe
ServicesregardlessofwhethersuchSoftwareisusedbyAcxiom,Allstate,
orathirdparty.
2.30.Term
"Term"shallmeantheperiodduringwhichAcxiomshallbeobligated
toprovidetheServices,asspecifiedinSection11.1hereof.
2.31.ThirdPartyDataProviders
"ThirdPartyDataProviders"shallmeanthosethirdparties
(includingAcxiomCorporationorAcxiomitself)fromwhichAcxiomprocures
dataforthebenefitof,ortobeusedby,Allstate.AlistoftheThird
PartyDataProvidersasoftheEffectiveDateiscontainedinSchedule
2.31.
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2.32.TotalDataCostSavings("TDCS")
TotalDataCostSavings("TDCS")shallmeanthedifferencebetween
thebenchmarkpriceandtheDACdefinedattheAllstateandPP&Cuser
level.
2.33.WorkOrder
"WorkOrder"shallmeanarequestfortheperformanceofworkthat
isnotbeingperformedataparticulartimebutthatiswithinthescopeof
theServices.
2.34.WorkProduct
"WorkProduct"shallmeanallinformation,computerprograms,
documentation,anddevelopmentscreatedforAllstate'suseorbenefitin
connectionwiththisAgreement,byAllstate,byAcxiom,orbyanyother
personengagedbyAllstateorAcxiom,andallintermediateand/orpartial
versionsthereof,including(butnotlimitedto)allsourcecodeandobject
codewithrespectthereto,andalldesigns,specifications,inventions,
discoveries,improvements,ideas,knowhow,techniques,materials,program
materials,software,flowcharts,notes,outlines,lists,data
compilations,manuscripts,writings,pictorialmaterials,schematics,other
creations,andthelike,whetherornotpatentedorpatentableorotherwise
protectablebylaw.WorkProductdoesnotandshallnotincludeanyAcxiom
CoreSoftware.
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3.SERVICES
FromandaftertheEffectiveDate,AcxiomshallprovidetheServicesto
AllstateandsuchofAllstate'sdivisions,businessunits,agents,orAffiliates
asAllstateshalldesignate.
3.1.ProvisionofServices
Commencingat12:01a.m.,localtime,ontheEffectiveDate,andat
alltimesthereafterduringtheTerm,exceptasotherwiseexpresslystated
herein,andsubjecttothequalifications,limitations,andexclusions
expressedelsewhereinthisAgreement,Acxiomshallperform(i)all
servicesthatAcxiomwasperformingorwasobligatedtoperformfor
AllstateimmediatelypriortotheEffectiveDateunderthePSAand(ii)all
otherservicesdescribedinthisSection3.
3.2.CurrentProjects
FromtheEffectiveDate,Acxiomshallcontinuetoberesponsiblefor
thecontinuinganduninterrupteddevelopmentandimplementationofall
CurrentProjectsastheyarebeingperformedimmediatelypriortothe
EffectiveDateforthefeespreviouslyagreeduponbythePartiespursuant
tothePSA
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3.3.DataAcquisitionandRelatedServices
FromtheEffectiveDate,Acxiomshallprovidedataacquisitionand
relatedservicesassetforthinSchedule3.3hereto.
3.4.FutureProjects
FromtheEffectiveDate,Acxiomshallperformsuchadditional
projects,relatingtotheServices("Projects")intheareaofdata
acquisition,dataprocessing,informationmanagement,professional
consulting,systemdesignanddevelopment,softwaremaintenance,
programming,andsoftwareacquisition,asAllstatemayrequestandAcxiom
mayagreefromtimetotime.Projectsmayberequestedorallyunless
requiredtobespecifiedinWorkOrderspursuanttotheproceduresset
forthinSection9.5,below;provided,however,thatonceanyoralrequest
hasbeenagreedupon,writtendocumentationevidencingsuchagreementshall
beexecutedbythePartiesaspromptlyaspossiblepriortotheinception
ofanyworkonsuchProject.
3.5.[IntentionallyLeftBank]
3.6.BusinessResumptionServices
FromtheEffectiveDate,Acxiomshallprovidebusinessresumption
servicesassetforthinSchedule3.6hereto.
3.7.DataIntegrityServices
FromandaftertheEffectiveDate,Acxiomshallprovidethedata
integrityservicesassetforthinSchedule3.7hereto.
4.MASLS
4.1.SpecificationofMASLs
Schedule4.1specifiescertainMASLs.TheinitialMASLsforthose
ServicespreviouslyprovidedunderthePSAandnotspecifiedinSchedule
4.1shallbethehigher(i.e.,themorebeneficialtoAllstate)of(i)the
actualservicelevelsprovidedimmediatelypriortotheEffectiveDateor
(ii)theMASLs,ifany,previouslyspecifiedforsuchservicesunderthe
PriorAgreements.AllMASLsshallbesubjecttoadjustmentpursuantto
thisSection4.
4.2.MASLMeasurementandReporting
AcxiomshallmeasureandreportitsperformanceagainsttheMASLs
duringeachmonth,bythe10thbusinessdayofthefollowingmonth.
Measurementsofavailabilityshallexcludescheduleddowntime,delaysin
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Measurementsofavailabilityshallexcludescheduleddowntime,delaysin
processingschedulesrequestedbyorcausedbyAllstate,andunscheduled
downtimetotheextentattributabletoForceMajeureEvents,ortheactsor
omissionsofAllstateorits
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employees,agents,thirdpartycontractors,andsuppliers.Acxiomshall
meetwithAllstate'sContractManageratleastquarterlytoreviewAcxiom's
actualperformanceagainsttheMASLsandshallrecommendremedialactions
toresolveperformancedeficiencies.
4.3.ImprovementinMASLs
MASLsshallbeadjustedbywrittenagreementofthePartiesfromtime
totime,butnotlessfrequentlythanattheendofeachanniversaryofthe
EffectiveDate,tobemadehigherormorestringentsoastoreflect
changesintechnology,changesinAllstate'sbusinessandenvironment,and
otherchangesincircumstances.Acxiomshallusecommerciallyreasonable
effortstoimproveitsperformanceinrelationtotheMASLsovertheTerm,
throughtheimplementationofefficiencyenhancinghardwareandsoftware
technologies.
4.4.TemporarySuspensionofMASLs
Intheevent,andtotheextent,thatAcxiomfailstomeetaspecific
MASLasaconsequenceofmaterialerrorsoromissionsofAllstateorits
employees,contractors,oragents,suchMASLwillbetemporarilysuspended
forsuchreasonableamountoftimeasisnecessaryforAcxiomtoreturnto
compliance,providedthatAcxiomshalluseitsbesteffortstoreturnto
compliance.Acxiomshalltakesuchreasonableprecautionsasitdeems
necessarytopreventtherecurrenceofanysuchevent.
5.ACXIOMRESOURCES
5.1.General
ExceptasprovidedinSchedule5.1,Acxiomshallhavefullandtotal
responsibilityforobtainingallSoftware,hardware,documentation,
services,andotherresourcesthatitwillneedinorderforittobeable
toprovidetheServicesinaccordancewiththeMASLs.Schedule5.1isa
listingofsuchresourcestobeprovidedbyAllstateinconnectionwiththe
provisionsofdatainteractively.AllresourcesspecifiedinSchedule5.1
thathavebeenprovidedbyAcxiompriortotheEffectiveDateshallbe
transferredtoAllstateasoftheEffectiveDateatnoadditionalchargeto
Allstate.
5.2.UseofDataAcquisitionSystem
DASwillbeusedtosupportAllstate'sautoandpropertynewbusiness
underwriting,autoandpropertyrenewalunderwriting,existingautocorrect
classificationprocesses,claimsandanyotherareasofbusinessuponwhich
thePartiesmayagree.AnybusinessunitorAffiliateofAllstateorany
insuranceorfinancialservicesentityinwhichAllstatehasownership
interestof10%orgreatermayutilizetheDASforcomparablerisk
assessment,administrativeand/orclaimspurposesforthesamefees
describedinthisAgreement.
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5.3.UseofDataNetwork
Acxiomshallberequiredtouse,andcauseitssupplierstouse,the
IBMGlobalnetwork,orsuchothernetworkasAllstatedirectsinitssole
discretion,(the"DataNetwork")foralldatatransmissionsrelatingtothe
Services.Allstatewillberesponsibleforallchargesrelatedto
utilizingtheDataNetworkfortransmissionofinformationtosupportDAS.
AllstatewillcoordinateAcxiom'seffortstoaddnewsupplierstotheData
Network.AllstatewillbearallDataNetworktransmissioncostsincurred
onAllstate'sbehalf.AcxiomwillnotutilizetheDataNetworkconnections
establishedforAllstatetotransmitdataforanyotherinsurancecompany
withoutthepriorwrittenconsentofAllstate.
5.4.NonExclusivity
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5.4.NonExclusivity
NothinghereinshallpreventAllstatefromobtaininganytypeof
Services,oranyotherservices,fromanyotherproviderduringtheTerm.
Notwithstandingtheprecedingsentence:(1)priortoobtainingServices
fromanotherproviderduringtheTerm,AllstateshallprovideAcxiomthe
opportunitytosubmitanoffertocontinuetoprovideServicesandAllstate
shallacceptsuchofferif,inAllstate'sreasonabledetermination,such
offerpermitsAllstatetocontinuetoreceivethebestServicesatthebest
price,and(2)AllstateshallprovideAcxiomtheopportunitytosubmitan
offertoprovideotherservicestoAllstateandAllstateshallacceptsuch
offerif,inAllstate'sdiscretion,suchofferpermitsAllstatetoreceive
thebestservicesatthebestprice.NothinghereinshallpreventAllstate
fromprovidinganyServicesoranyotherservicestoitselforits
Affiliatesusingitsownfacilities,employeesandAffiliates.
6.SECURITYOBLIGATIONS
AtalltimesduringtheTerm,Acxiomshallbefullyandsolelyresponsible
forensuringtheintegrityofAllstate'sDataandthesecurityofthestorage,
processing,compilation,ortransmissionofallAllstate'sDataandofall
equipment,storagefacilities,andtransmissionfacilitiesonwhichorthrough
whichAllstate'sDataisstored,processed,compiled,ortransmitted,including,
butnotlimitedto,thepreventionanddetectionofAcxiomemployeefraud,
abuse,orotherinappropriateuseoraccessbyanyAcxiomemployee.Inthis
respect,Acxiomshallperform,amongotherthings,allthetasksandtakeall
themeasuresdescribedinSchedule6andshalltakesuchotherinitiativesor
measuresasnecessaryandappropriateunderthecircumstances.
7.ALLSTATERETAINEDAUTHORITYANDOBLIGATIONS
7.1.AllstateAuthority
Allstateshallretainalldecisionmakingauthoritywithrespectto
theoverallassessmentanddirectionoftheServices,introductionofnew
productsandProjects,andmodificationordiscontinuanceofproductsor
Projects.AcxiomshallcooperatewithAllstateandprovideAllstatewith
advice,information,andassistancein
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identifyinganddefiningdatamanagementprojectsoutsidethescopeofthe
ServicesandfuturedatamanagementrequirementstomeetAllstate's
businessobjectives.
7.2.AccesstoPersonnelandInformation
AllstateshallreasonablycooperatewithAcxiominallmatters
relatingtoAcxiom'sperformanceoftheServices.Suchcooperationshall
include(butnotbelimitedto)reasonableaccesstoAllstate's
administrative,technical,andothersimilarpersonnelasreasonably
requiredbyAcxiomtoprovidetheServices.
8.FINANCIALTERMS
AsthesoleandentireconsiderationforalloftheServicestobe
performedbyAcxiomandforalloftheothertasks,services,andobligationsof
AcxiomunderthisAgreement,AllstateshallpaytoAcxiomtheamountssetforth
inthisSection8.
8.1.DataAcquisitionFees
UnlessotherwisespecifiedinaWorkOrderorinSchedule8.1hereto,
AllstatewillpaytoAcxiomtheDACforanydataacquiredbyAcxiomfor
AllstateinconnectionwiththeServicesplusanamountequaltothreeand
onehalfpercent(3.5%)ofsuchDAC;providedhowever,thattheforegoing
feesshallnotapplytostateMotorVehicleRegistration("MVR")feesand
surcharges,forwhichAllstateshallpaythefeessetforthinSchedule
8.1;andprovidedfurtherthatanytaxesimposedupontheacquisitionor
useofsuchdatashallbepaidbyAllstate,andthatAllstateshallnotpay
AcxiomanyservicefeesorsurchargesforAcxiom'shandlingandpaymentof
suchtaxes.
8.2.SharedSavingsDataAcquisitionCosts
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8.2.1.TotalDataCostSavings
AllstateshallpaytoAcxiomfortypercent(40%)oftheTDCS
resultingfromAcxiom'sperformanceoftheServices.TDCSshallbe
computedasthedifferenceoftheBenchmarkPricelesstheDACfor
anydataacquiredbyAcxiomforAllstatepursuanttothisAgreement.
8.2.2.DeterminationofBenchmarkPrice
Acxiomshallberesponsiblefordocumentingandtrackingthe
BenchmarkPriceasfollows.
8.2.2.1.Fortypesofdatapreviouslyobtained
directlybyAllstate,theBenchmarkPriceshallbethe
averagepricepaidbyAllstateforsuchdataduringthe
twelve(12)monthperiodpriortoAcxiom'staking
responsibilityfortheacquisitionofsuchdata.
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8.2.2.2.FortypesofdataobtainedbyAcxiompursuant
tothePSA,theBenchmarkPriceshallbethatBenchmarkPrice
asdeterminedpursuanttothePSAandsetforthinSchedule
8.2.2hereto.
Fortypesofdataforwhichnohistoricalpricinginformation
isavailable(e.g.,newtypesofdata),thepartiesshallendeavor,
ingoodfaith,toagreeuponaBenchmarkPrice.Intheeventthatthe
partiesareunabletomutuallyagreeuponaBenchmarkPrice,a
requestforquotewillbesentoutwithvolumeestimatessuppliedand
theresponsetosuchrequestwillbeusedasthebenchmark.
8.2.3.EffectofSupplierPriceChangesonTDCS
IntheeventthatadatasupplierotherthanAcxiomincreases
ordecreasesthecostofdata,partoralloftheincreasedor
decreasedcostwillbepassedontoAllstatebyAcxiom.Accordingto
thecircumstancessurroundingthepriceincreaseordecrease,TDCS
mayormaynotbeaffected.ThefollowingscenariosdetailwhenTDCS
willandwillnotbeaffected,andhowtheincreaseordecreasewill
bepassedontoAllstate.
8.2.3.1.Ifasupplierpriceincreaseislevied
againstallofsuchsuppliers'customers(e.g.,anincrease
inthe`listprice'forsuchdata),theBenchmarkPricewill
beincreasedbythefullamountofthepriceincrease.
8.2.3.2.Ifasupplierpriceincreaseisleviedonly
againstAcxiomorAllstate,theBenchmarkPricewillnotbe
adjusted.
8.2.3.3.Ifasupplierpricedecreaseisapplicableto
allofsuchsuppliers'customers(e.g.,adecreasein`list
price'forsuchdata),theBenchmarkPricewillbedecreased
bythefullamountofsuchpricedecrease.
8.2.3.4.Ifasupplierpricedecreaseisapplicable
onlytoAcxiomorAllstateandsuchdecreaseisachievedasa
resultofAcxiom'seffortshereunder,theBenchmarkPrice
willnotbeadjusted,provided,howeverthatifsuchdecrease
isnotattributabletoAcxiom'seffortshereunder,the
BenchmarkPricewillbedecreasedbythefullamountofsuch
pricedecrease.
8.3.SharedSavingsOtherCosts
Aspartofitsresponsibilitiestooptimizetheefficiencyandcost
effectivenessofServices,Acxiomshalluseitsbestcommercial
effortstoreduceAllstate'scostsassociatedwiththeServices,
withoutreductionintheMASLsandwithoutincreasingtheoverall
costsassociatedwiththeServices.Allstatewill
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paytoAcxiomfortypercent(40%)ofthe"FirstYearSavings"
directlyresultingfromeachspecificallyidentifiable"Optimization"
(e.g.,improvedtechnologyreducingthenumberofserversrequired
forAllstate'srequirements)thatreducesAllstate'sdirectcosts,
calculatedonthefollowinggeneralterms:
(a)TheFirstYearSavingswillbeestimatedthreemonthsafterthe
mutuallyagreed"ImplementationDate"oftheOptimization,and
willequaltheexcess(ifany)of:(i)theestimatedamountof
thedirectcoststhatwouldhavebeenincurredbyAllstateor
paidtothirdparties,forthefirsttwelvemonthsafterthe
calendarmonthinwhichtheImplementationDateoccurs,hadthe
Optimizationnotbeenimplemented,over(ii)theestimated
amountofthedirectcostsincurredbyAllstateortobepaidto
thirdpartiesforsuchtwelvemonthperiod.
(b)TheOptimizationmustbespecificallyidentifiableandanyFirst
YearSavingsmustbeadirectresultofAcxiom'sactions.Any
costsavingsachievedasresultofAllstatedirectingAcxiomto
implementacostsavingorefficiencyoptimizingsolution,shall
notbedeemedanOptimizationandAllstateshallnotpayAcxiom
foranyresultingsavings.
8.4.DataNetworkCosts
AllstatewillbearallDataNetworktransmissioncostsincurredon
Allstate'sbehalf.AcxiomshallinvoiceAllstateforanyDataNetwork
transmissioncostspaidbyAcxiomonAllstate'sbehalf,andsuchcosts
shallbepayablebyAllstate,withoutanysurcharges,servicefees,or
otheradditions.
8.5.Audit
Acxiomshall,atAllstate'srequest,provideAllstate'sauditorswith
theabilitytofullyauditallrelevantportions(asreasonablydetermined
byAllstate)ofAcxiom'sbooksandrecordstoverifythecalculations
providedforinthisSection8.Acxiomshallprovidesuchauditorswith
reasonableaccesstosuchinformationrelatingtothisAgreementand
Acxiom'sbusinessasmaybenecessarytoconfirmtheaccuracyofthe
pricingmodelandpricingadjustmentcomputationsforanygivenyear.Any
overcharges,undercharges,orerrorsincomputationdiscoveredinthe
courseofanysuchauditshallbereflectedonthenextinvoiceproducedby
Acxiomhereunder.Intheeventthatsuchanauditrevealsnetovercharges
inexcessoffivepercent(5%)oftheamountthatshouldhavebeenpayable
byAllstatehereunder,Acxiomshall(i)reimburseAllstateforallcosts
associatedwithsuchAudit;(ii)refundorcreditAllstate(atAllstate's
option)thefullamountofsuchovercharges;and,(iii)payAllstate
interestatarateequaltotwo(2)percentagepointsabovethefloating
"primerate"aspublishedfromtimetotimebyTheWallStreetJournal.
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8.6.Taxes
(a)Allstateshallpayanyapplicabletaxesthatmaybeleviedor
baseduponthisAgreementorupontheServicesandfacilitiesprovidedbyAcxiom
hereunder,includingwithoutlimitationsales,use,nonresident,valueadded,
excise,andsimilartaxes,butexcludingtaxesleviedorimposedupontheincome
orbusinessprivilegesofAcxiom.
(b)TotheextentAcxiomisrequiredtocollectandremitany
AllstateTax,AcxiomshallinvoiceAllstate,asaseparateline
item,theamountofanysuchtax.
(c)Allstateshallhavetherighttocontestthevalidityand
paymentofanyAllstateTaxallegedlyowedunderthisSection.
AcxiomagreestocooperatewithAllstateinallsuchcontests.
IntheeventthatAllstateelectstocontestthevalidityor
paymentofanyAllstateTax,Allstateshallnotberequiredto
payanysuchtaxuntilthecontestisresolved.Innoevent
shallAcxiomberequiredtopayanyAllstateTaxandAllstate
shallremittoAcxiomanysuchpayment,aswellasthepaymentof
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shallremittoAcxiomanysuchpayment,aswellasthepaymentof
anyfees,penaltiesorlatechargesrelatedtheretowhichAcxiom
mayberequiredtopay,asaresultofanydeterminationin
connectionwithanycontestwithtaxingauthorities.Allstate
shallpaysuchamountwithintwentyfive(25)daysofreceiptby
AllstateofaninvoicefromAcxiom.Allstateshallnotbe
responsibleforanypenaltiesorlatechargesassesseddueto
Acxiom'snegligence.Allstatereservestherighttointervenein
anydisputewithataxingauthorityastothetaxabilityofthe
SoftwareSystemorservicesprovidedtoAllstatepursuanttothis
Agreement.
8.7.ServicesBenchmarking
WithAllstate'sdirectionandcooperation,andaspartofthe
Services,Acxiomshallproposeandeffectacontinuingbenchmarkingprogram
andmethodologyacceptabletoAllstatethattakesintoconsideration
adjustments,ifany,forreasonablycomparableelementsoftheServicesand
thatwillenableAllstatetocomparethefeesandMASLssetforthinthis
Agreementwithanannuallyupdateddatabaseofpeercompaniesandensure
thatsaidfeesandMASLsarealignedwiththeindustry'sbestratesand
practicesandappropriateadjustmentstomeetsuchindustrybestratesand
practicesshallbemadeannuallyasaContractChange.AtAllstate's
direction,AcxiomshallworkwithanybenchmarkingfirmAllstateselects.
8.8.OutofScopeServicesRateChart
Allstateshallpayforany"OutofScopeservices"(i.e.,ancillary
servicesthatarenotapartofServices),onatimeandmaterialsbasisat
theratessetforthinthe"RateChart"attachedasSchedule8.8.Such
ratewillremainfixeduntilthesecondanniversaryoftheEffectiveDate.
Thereafter,Acxiommayincreasesuchratesonly
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onceeachyearoftheTerm(andonlyuponandasofananniversaryofthe
EffectiveDate)byanamountnottoexceedthelesserof:(i)threepercent
(3%)ofthethenapplicablerate;or(ii)theincrease,duringsuchyear,
intheUnitedStatesDepartmentofLabor,BureauofLaborStatistics,
EmploymentCostIndex,TotalCompensation,PrivateIndustryWorkersBy
IndustryandOccupationalGroupforProfessionalSpecialtyandTechnical.
AllstateshallreimburseAcxiomforreasonableoutofpocketexpenses
incurredbyAcxiomintheperformanceofOutofScopeservices,suchas
reasonabletravelandlivingexpenses,providedsuchexpensesareinvoiced
withreasonablesupportingdocumentationandauthorizedinwritingby
Allstatepriortobeingincurred.AcxiomshallprovideinvoicingforOut
ofScopeserviceswithdocumentationthatreferencesAllstate'sauthorizing
documentation,Allstateaccountnumber,charges,anddescription.No
invoicewithrespecttoOutofScopeserviceswillbepaidunlesssuch
serviceswereauthorizedinadvanceinwritingbyAllstate'sContract
Manager.
8.9.FeeReductions
ThisSection8.9specifiescertain"FeeReductions."Itisunderstood
thattheseFeeReductionsareintendedtoreflect,tosomeextent,the
diminishedvalueofAcxiom'sServicesinsuchevents;suchFeeReductions
arenotintendedtocompensateAllstateforanybreachordefaultbyAcxiom
underthisAgreement,nortoconstitutepenalties,damages,liquidated
damages,orothercompensationforanysuchbreachordefault.Anydamages
recoveredbyAllstateforaMaterialDefaultshallbereducedbytheFee
ReductionpreviouslypaidbyAcxiomtoAllstateanddirectlyrelatedtothe
MaterialDefault.
Upontheoccurrenceofanyfailuretomeetanyofthefollowing
criticalMASLsfortheeventintheapplicablemonth(a"Failure"),
Allstate'sContractManagermayimposeaFeeReductioninrespectofsaid
monthassetforthinthisSection8.9withrespecttoAcxiom'sactual
performanceasmeasuredagainsttheMASL.
WithrespecttotheFailuressetforthinthetablesbelow:(i)ifthe
particularFailureoccursinanytwo(2)consecutivemonths,theFee
Reductionforthesecond(2nd)ofsuchmonthswithrespecttothatdevice
oreventshallbetheapplicableFeeReductionamountsetforthbelow;(ii)
iftheparticularFailureoccursinanythree(3)consecutivemonths,the
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iftheparticularFailureoccursinanythree(3)consecutivemonths,the
FeeReductionforthethird(3rd)ofsuchmonths,andforeachsucceeding
monthuntilthefirstmonthwhentheFailurenolongeroccurs,shallbe
three(3)timestheapplicableFeeReductionamountsetforthbelow.
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<TABLE>
<CAPTION>
MASLFeeReduction
<S><C>
MASLsrelatedtodeliveryofdataThetotalamountofanyfeepaidto
pursuanttoDASAcxiominexcessoftheDAC(plus
applicabletaxes)
MASLIAcxiomHelpDesk$10peroccurrenceexceedingmaximum
timeonhelpdesk
MASLIIReporting$10perlatereport
MASLIIIProcessingServiceLevelsNetrevenueafterdataexpense
Batch
MASLIVProcessingServiceLevel"
Interactive
MASLVIntegrityofData"
</TABLE>
AcxiomshallpayallFeeReductionstoAllstatebycreditagainst
futureinvoicesbacktotheAllstatedivision,businessunit,agentor
AffiliatewhoserequestgeneratedtheFeeReduction,or,atAllstate's
writtenrequest,bywiretransfertoanaccountdesignatedbyAllstate,on
orbeforethefirstdayofthemonthafterthemonthinwhichitreceives
noticefromAllstateoftheassessmentofsaidFeeReduction.
AllstateshallgiveAcxiomreasonableadvancenoticeofanticipated
changesinnumbersofEndUsersorprocessingvolumes(measuredbynumbers
ofdatarequests,transactions,reports,EndUsersorothersimilar
objectiveandmeasurablecriteria).FeeReductionswillnotbeimposedin
theeventtheFailureisattributableto:(i)anactoromissionof
Allstate;(ii)aForceMajeureevent;(iii)materialchangesinhardwareor
softwareenvironmentsimplementedbyAllstateorathirdpartyandnot
approvedbyAcxiom;or(iv)increasesinprocessingvolumesforwhich
Acxiomdidnotreceivereasonableadvancewrittennotice.
8.10.OnlyPayments
ThefeessetforthinthisSection8aretheonlypaymentstobe
madebyAllstatetoAcxiomunderthisAgreement.Acxiomshallbesolely
responsiblefor,andshallindemnifyAllstateagainst,allcostsand
expensesofAcxiomnecessarytomeetAcxiom'sobligationsarisingunder
thisAgreement,including(butnotlimitedto)laborexpenses,hardwareand
softwarecosts,andgeneralbusinessexpenses(including,but
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notlimitedto,travel,meals,andoverheadexpenses).Exceptasotherwise
expresslystated,AllstatewillnotpayAcxiomanyadditionalfees,
assessments,orreimbursements.
8.11.Invoices
8.11.1.DataAcquisitionCosts
Acxiomshallfurnish:(a)eachAllstatePP&Cregion,each
claimsoffice,andeachotheruserofDASspecifiedbyAllstatewith
aseparatemonthlyinvoiceforitsproportionateshareofDAC,
applicablesurcharges,taxes,andTDCS,and(b)theAllstate
headquarterswithamonthlyinvoiceforitsproportionateshareof
DAC,applicablesurchargesandTDCS,aswellastheshareofsuch
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DAC,applicablesurchargesandTDCS,aswellastheshareofsuch
chargesnototherwiseallocatedtootherDASusers,whichshares
shallbeseparatelystatedonsuchinvoice.Subjecttothe
provisionsofSections8.11.4and8.11.5hereof,anduntilsuchtime
asthePartiessuccessfullyimplementanElectronicDataInterchange
system,whichshallincludeprovisionofaconsolidatedmonthly
invoicewithseparatelineitemsbyAllstatecostcenter("EDI")
betweenthem,Allstateshallpayeachsuchinvoicenolaterthan30
businessdaysafterreceipt.Afterthesuccessfulimplementationof
EDI,butstillsubjecttotheprovisionsofSections8.11.4and
8.11.5,Allstateshallpay:(x)suchinvoicesrelatedtoDAS
providedtoPP&Cregions,claimsofficeandotherDASusersnot
classifiedbyAllstateaspartofAllstate'shomeofficenotlater
than15businessdaysafterreceipt,(y)suchinvoicesrelatedto
DASprovidedtousersclassifiedbyAllstateaspartofAllstate's
homeofficenotlaterthan30businessdaysafterreceipt,and(z)
interestattherateofonepercent(1%)permonthonanyundisputed
amountsnotpaidwithinthetimeframesreferencedinthissentence.
8.11.2.OtherCharges
AcxiomshallfurnishAllstatewithasinglemonthlyinvoice
settingforthindetailallchargespayablebyAllstateotherthan
thoseinvoicedpursuanttoSection8.11.1hereof.Subjecttothe
provisionsofSections8.11.4and8.11.5hereof,Allstateshallpay
eachsuchinvoicenolaterthan30businessdaysafterreceipt.
8.11.3.FrequencyandFormat
AllinvoicesshallbefurnishedbyAcxiomnotlaterthan
thetenth(10th)dayofeachcalendarmonthforServicesdelivered
duringtheimmediatelyprecedingcalendarmonth.Invoicesshallbe
providedinformatsreasonablyrequestedbyAllstatefromtimeto
time.UponrequestofAllstate,AcxiomshallprovideAllstatewitha
consolidatedreportshowingallinvoicesfurnishedtoallAllstate
units,statusofpaymentsofsuchinvoices,andsuchotherinvoicing
andpaymentinformationthatisreasonablyrequestedbyAllstate.
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8.11.4.DisputedAmounts
Allstatemay,ingoodfaith,disputeanyinvoiceorany
portionthereofandshallberequiredtopaytoAcxiomonlythe
undisputedamountsuntilthedisputeisresolvedtoAllstate's
satisfaction.ThefailureofAllstatetopayadisputedamountshall
notconstituteabreachorMaterialDefaultbyAllstate,provided
thatAcxiomshallhavebeengivennoticeofthesubjectofthe
disputeinaccordancewithSection21hereofandthatthe
appropriatedisputeresolutionproceduresofthisAgreementshall
havebeeninitiatedbyAllstateorAcxiomwithrespecttothe
matter.
8.11.5.SetOff
Allstatemaysetoffagainstanyandallamountsotherwise
tobepaidtoAcxiompursuanttoanyoftheprovisionsofthis
Agreement:(i)anyandallamountsowedbyAcxiomtoAllstateunder
theprovisionsofSection20(Indemnification);and(ii)anyother
amountsclaimedingoodfaithtobeowedtoAllstatebyAcxiomin
respectofthisAgreement.Withinsixty(60)daysofanysetoffby
Allstate,AllstateshallprovidetoAcxiomadetailedwritten
accountingofsuchsetoffandawrittenstatementofthereasons
forsuchsetoff.
8.12.MostFavoredCustomer
NotwithstandingtheforegoingifAcxiomofferstoanynewor
existingcustomer,anyservicessubstantiallythesameasthosedescribed
inthisAgreementatapriceloweroradiscountgreaterthantheprice
chargedtoAllstatehereunder,oroffersmorecomprehensiveservicesatthe
sameoralowerprice,thenAcxiomshalloffersuchlowerpriceorgreater
discounttoAllstateinlieuofthepricethereofthatisreflectedinthe
pricesetforthinthisAgreement(or,ifthepricehasalreadybeenpaid,
AcxiomshallpaytoAllstatearefundofthedifferencebetweentheprice
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AcxiomshallpaytoAllstatearefundofthedifferencebetweentheprice
alreadypaidandthelowerpriceorshalloffertoAllstatesuchadditional
ormorecomprehensiveservicesatthelowerprice(orgreaterdiscount).
WithoutlimitingthegeneralityofSection8.11.5,Allstatemayoffsetsuch
overchargeamountagainstanyamountsduetoAcxiomunderthisAgreementor
anyothercontractwithAllstate.Inanyevent,anyacquisitionbyAllstate
ofservicesorproductsfromAcxiomshallbeattheterms,conditions,and
pricesgrantedbyAcxiomtoitsmostfavoredcustomerreceiving
substantiallythesameservicesorproducts.AcxiomshallnotifyAllstate
oftheoccurrenceofthelowerpriceorgreaterdiscount(orprovisionof
morecomprehensiveservices)asdescribedinthisSection8.12within
thirty(30)daysafteritsimplementationofsuchlowerpriceorgreater
discount(orprovisionofmorecomprehensiveservices).Acxiomfurther
shallnotifyAllstateonaperiodicbasis,nolessfrequentlythan
annually,iftherehasbeennosuchoccurrenceoflowerprice,greater
discountorprovisionofmorecomplianceserversduringsuchpreceding
period.
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9.RELATIONSHIPMANAGEMENT
9.1.KeyPersonnelandContractManager
9.1.1.Acxiom'sKeyPersonnelandContractManager
Uponthirty(30)days'priorwrittennotice,Acxiommay
reassignanyofAcxiom'sKeyPersonnelincluding(butnotlimited
to)KeyPersonnelassignedsolelytoAllstate,tootherjob
functionswithinAcxiom;providedhowever,thatsuchreassigned
personsshallnotperformanyservicesforStateFarmMutual
InsuranceCompany,FarmersGroup,Inc.,NationwideMutualInsurance
Company,AmericanFamilyMutualInsuranceCompany,UnitedServices
AutomobileAssociation,SAFECOCorporation,GEICO,American
InternationalGrouporTheProgressiveCorporationoranyoftheir
respectivesubsidiariesoraffiliateswithinsix(6)monthsofbeing
reassigned.Acxiomshallpromptlyreplacesuchreassignedperson
withanotherpersonatleaseaswellqualified.Acxiomrepresents
thatAcxiom'sContractManagerisanexperiencedmanagerwhois,or
willendeavortobecome,knowledgeableastoAllstate'sactivities
andanyapplicableMASLs.Allstateshallhavetherightto
interview,asAllstatedeemsnecessary,andparticipateinthe
selectionofAcxiom'sKeyPersonnelandContractManager,andAcxiom
shallnotdesignateanyKeyPersonneloritsContractManager
withoutAllstate'spriorwrittenconsent,whichconsentshallnotbe
unreasonablywithheld.Uponthirty(30)days'priorwrittennotice,
AcxiommayreassigntheContractManagertootherjobfunctions
withinAcxiom;providedhowever,thatsuchreassignedContract
ManagershallnotperformanyservicesforStateFarmMutual
InsuranceCompany,FarmersGroup,Inc.,NationwideMutualInsurance
Company,AmericanFamilyMutualInsuranceCompany,UnitedServices
AutomobileAssociation,SAFECOCorporation,GEICO,American
InternationalGrouporTheProgressiveCorporationoranyoftheir
respectivesubsidiariesoraffiliateswithinsix(6)monthsofbeing
reassigned.Acxiomshallpromptlyreplacesuchreassignedperson
withanotherpersonatleastaswellqualified.Acxiom'sContract
ManagerwillactastheprimaryliaisonbetweenAcxiomand
Allstate'sContractManager,willhaveoverallresponsibilityfor
directingallofAcxiom'sactivitieshereunder,andwillbevested
withallnecessaryauthoritytofulfillthatresponsibility.
9.1.2.Allstate'sKeyPersonnelandContractManager
Allstate'sKeyPersonnelshallprovideadviceand
assistancetoAcxiominareasrequiringparticulartechnicalor
functionalexpertiseorworkexperience.IfanyoneofAllstate's
KeyPersonnelisunabletoperformthefunctionsorresponsibilities
assignedtohimorherinconnectionwiththisAgreement,orifhe
orsheisnolongeremployedbyAllstate,Allstateshallpromptly
replacesuchpersonorreassignthefunctionsorresponsibilitiesto
anotherperson.Allstate'sContractManagershallactastheprimary
liaison
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betweenAllstateandAcxiom'sContractManagerandshallhave
overallresponsibilityfordirectingallofAllstate'sactivities
hereunderandshallbevestedwithallnecessaryauthorityto
fulfillthatresponsibility.
9.1.3.AdditionalPersonnelRequirements
InadditiontoAcxiom'sKeyPersonnel,Acxiomshallmake
availablesuchadditionalpersonnelasarenecessarytoproperly
performAcxiom'sobligationsunderthisAgreementatperformance
levelsatleastequaltotheMASLs.
9.1.4.MinimumProficiencyLevels
Acxiom'sKeyPersonnelandallotherpersonnelassignedby
AcxiomoritssubcontractorstoperformAcxiom'sobligationsunder
thisAgreementshallhaveexperience,training,andexpertiseat
leastequaltothehighestcommercialstandardsapplicabletosuch
personnelfortheirresponsibilitiesinthebusinessinwhichAcxiom
isengagedandshallhavesufficientknowledgeoftherelevant
aspectsoftheServicesandshallpromptlyobtainsufficient
knowledgeofAllstate'spracticesandareasofexpertisetoenable
themtoproperlyperformthedutiesandresponsibilitiesassignedto
theminconnectionwiththisAgreement.Inaddition,theServices
shallconformtothehighestcommercialstandardsapplicabletosuch
ServicesinthebusinessinwhichAcxiomisengaged.
9.1.5.Training
Acxiomshallprovide,andcauseitssubcontractorsto
provide,allsuchtrainingtotheemployeesofAcxiomandits
subcontractorsasmaybenecessaryforthemtoperform,onbehalfof
Acxiom,allofAcxiom'sdutiesunderthisAgreement.
9.1.6.UnsatisfactoryPerformance
NotwithstandingSection9.1.1,ifAllstatebelievesthat
theperformanceorconductofanypersonemployedorretainedby
AcxiomtoperformAcxiom'sobligationsunderthisAgreementis
unsatisfactoryorisnotincompliancewiththeprovisionsofthis
Agreement,AllstateshallsonotifyAcxiomandAcxiomshallpromptly
addresstheperformanceorconductofsuchperson,or,atAllstate's
request,immediatelyreplacesuchpersonwithanotherperson
acceptabletoAllstate.
9.2.Allstate'sPolicies
AcxiomshallensurethatitandallAcxiomPersonnelcomplywiththe
followingAllstatepoliciesandsuchadditionalpoliciesasmaybeprovided
byAllstate
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toAcxiomfromtimetotime,andAcxiomshallcooperatewithAllstateto
facilitateAllstate'scompliancewithsuchpolicies:
9.2.1.ComputerInformationandAccess
Priortoperforminganyservicespursuanttothis
Agreement,theAcxiomPersonnelshallexecuteAllstate'sstandard
formsconcerningaccessprotectionanddata/softwaresecurityinthe
formattachedheretoasSchedule9.2.1.Computerdataandsoftware
shallbeusedbyAcxiomPersonnelonlyinconnectionwithAcxiom's
obligationshereunder.FailureofAcxiomtocomplywiththeserules
mayresultinAllstaterestrictingoffendingpersonnelfromaccessto
Allstatecomputersystemsordata,orifsuchfailureiswillful,
recklessorgrosslynegligent,immediateterminationofthis
Agreement.
9.2.2.ConfidentialityandIntellectualProperty
Priortoperforminganyservicespursuanttothis
Agreement,allAcxiomPersonnelshallexecutethe"Acknowledgment"
attachedheretoasSchedule9.2.2orsuchothersimilarlyrestrictive
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attachedheretoasSchedule9.2.2orsuchothersimilarlyrestrictive
documentinformandsubstanceacceptabletothepartieswithrespect
totheprotectionofconfidentialinformationandassignmentof
intellectualpropertyrights.
9.2.3.OtherPolicies
WhenonAllstate'spremises,Acxiomshall,andshallcause
allAcxiomPersonnelto,abidebyallAllstatecorporatepoliciesthat
maybeestablishedbyAllstatefromtimetotime.
9.2.4.Enforcement
Acxiomshallrenderallreasonableassistancerequestedby
AllstateintheeventAllstateisrequiredtoenforceanyofthe
foregoingpolicies,orAcknowledgmentswithrespecttoanycurrentor
formerAcxiomPersonnel.
9.3.RegulatoryCompliance
AcxiomshallassistAllstateinregulatorycomplianceandfurther
assistAllstatetotheextentAcxiom'sactionsareattributedtoAllstate.
AllstateagreestoreimburseAcxiomforallexpensesreasonablyincurred
andapprovedinadvancebyAllstateincomplyingwiththisSection9.3.
9.4.OperationalChangeProcedure
Acxiommaymakeoperationalchangesinthemannerinwhichit
providestheServices,usingsuchprocessesasthePartiesmutuallyagree
uponfromtimetotime.Operationalchangesshallinclude,bywayof
example:Acxiomloggingchangesaccordingtoadocumentedchangecontrol
process;conductingmutuallyagreed,
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regularchangecontrolmeetings;AcxiomnotifyingAllstateandEndUsers,
asappropriate,ofplannedchangecontrolactivitieswithsufficientlead
timestoavoiddisruption;andAcxiomschedulingoutagesduringhoursthat
meetAllstateoperationalneedsandminimizedisruption.
9.5.WorkOrderProcedure
9.5.1.WhenRequired
AWorkOrdershallberequiredtoimplementanynewService
orProjectortomakematerialmodificationstoanexistingService
orProjectif:(i)theestimatedcosttoAllstateofsuchnewor
modifiedServiceorProjectexceedsFiftyThousandDollars
($50,000.00);or(ii)thetermsunderwhichsuchnewormodified
ServiceorProjectwillbeprovidedbyAcxiomaremateriallyat
variancewiththetermsofthisAgreement(e.g.,specialfinancial
terms);or(iii)eitherpartyrequeststhatsuchnewormodified
ServiceorProjectbespecifiedinaWorkOrder.
9.5.2.ContentsoftheWorkOrder
EachWorkOrderissuedpursuanttotheAgreementshall
containthefollowing(totheextentapplicabletotheservicesto
beperformed):adetaileddescriptionoftheservicestobe
performed;specifications;implementationplans;timeschedules;
financialtermsifdifferentfromthosesetforthherein;MASLs;and
acceptancecriteria.WorkOrdersshallbegovernedbythetermsand
conditionsofthisAgreement.AllWorkOrdersshallbeagreedtoand
signedbytheAllstateContractManagerandtheAcxiomContract
ManagerpriortothestartoftheServicessetforththerein.
10.ProprietaryRights;OwnershipofWorkProduct
AllstateshallbethesoleandexclusiveownerofalloftheWorkProduct,
andofallcopyright,patent,trademark,tradesecret,andotherproprietary
rightsintheWorkProduct.OwnershipofWorkProductwillinuretothebenefit
ofAllstatefromthedateofcreation,oroffixationinatangiblemediumof
expression,asapplicable,ofsuchWorkProduct.Eachcopyrightableaspectof
theWorkProductwillbeconsideredasthoughitwasa"workmadeforhire"
withinthemeaningoftheCopyrightActof1976,asamended.Ifandtothe
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withinthemeaningoftheCopyrightActof1976,asamended.Ifandtothe
extentthattheWorkProduct,oranypartthereof,isfoundasamatteroflaw
nottobea"workmadeforhire"withinthemeaningoftheCopyrightActof
1976,asamended,AcxiomherebyassignsandagreestoassigntoAllstate
exclusivelyallright,title,andinterestinandtotheWorkProduct,andall
copiesthereof,andthecopyright,patent,trademark,tradesecret,andall
otherproprietaryrightsintheWorkProduct,withoutfurtherconsideration,
freefromanyclaim,lienforbalancedue,orrightsofretentiontheretoonthe
partofAcxiom.AssetforthinSection9.2.1hereof,Acxiomshallobtain
similarwrittenundertakingsfromAcxiomPersonnelwhowillperformtheservices
relatingtothisAgreement,soastoensureAllstate'sownershipoftheWork
Product.AcxiomalsoacknowledgesthatAllstatedoesnotintend
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AcxiomtobeajointauthoroftheWorkProductwithinthemeaningofthe
CopyrightActof1976,asamended,andthatinnoeventshallanyWorkProduct
bedeemedtohavebeendevelopedwiththeintentthatAcxiombeajointauthor
thereof.AllstatewillhaveunrestrictedaccesstoallAcxiom'smaterials,
premises,andcomputerfilescontainingtheWorkProductprovided,however
Allstateshallgivereasonablenoticepriortoexercisingsuchright.Allstate
shallgrantAcxiomanontransferable,nonexclusivepersonallicensetouseany
WorkProductsolelyfortheprovisionofServicestoAllstate,and,subjectto
thetermsandconditionsofthelicenseagreementattachedheretoasExhibit
____,AcxiommayusetheWorkProductinconnectionwiththeprovisionof
ServicestoAcxiom'sothercustomerswiththepriorwrittenconsentofAllstate,
whichmaybewithheldinAllstate'ssolediscretion.Acxiomshallpromptlyand
fullydiscloseanddelivertheWorkProducttoAllstate,inwritingifrequested
byAllstate,andshallexecuteanddeliveranyandalllawfulpatent,copyright,
orotherapplications,assignments,andotherdocumentsthatAllstaterequests
forprotectingtheWorkProduct,whetherintheUnitedStatesoranyother
country.Allstateshallhavethefullandsolepowertoprosecutesuch
applicationsandtotakeallotheractionconcerningtheWorkProduct,and
Acxiomshallcooperatefullyandinalawfulmanner,attheexpenseofAllstate,
inthepreparationandprosecutionofallsuchapplicationsandinanylegal
actionsandproceedingsconcerningtheWorkProduct.Acxiomshallretainall
right,title,andinterestinallintangibleideas,knowhow,andtechniques
developedbyAcxiomthatarenotWorkProductandAcxiomherebygrantsto
Allstateaperpetual,nonexclusive,royaltyfreelicensetouseanysuchideas,
knowhow,andtechniquesthatareembeddedintheWorkProduct.
10.1.RightsandLicenses
Acxiomshallberesponsibleforobtainingfromthirdpartiesall
rightsandlicensesrequiredtoperformtheServices.Withrespecttoall
technologyusedandtobeusedbyAcxiomtoperformtheServiceshereunder,
AcxiomherebygrantsandagreestogranttoAllstate,orcausetobe
grantedbythelicensorthereof,withoutadditionalcharge,suchlicenses
andsublicensesasmaybenecessaryinorderforAllstate,andits
authorizedrepresentatives,touse,orreceivethebenefitoftheuseby
Acxiomof,suchtechnologyinconnectionwiththeServices.Further,
Acxiomshallexerciseitsbesteffortstoobtainfromthirdpartieson
behalfofAllstate,withoutadditionalcharge,suchlicenses,
authorizations,orconsentsasmaybenecessaryforAllstateandits
authorizedrepresentativestouseanytechnologynecessaryforAllstate(or
itsauthorizedrepresentative)tocontinuetoperformtheServicesfor
AllstateafteraDisentanglement.
10.2.AdverseAction
EachofthePartiescovenantstoperformitsresponsibilitiesunder
thisAgreementinamannerthatdoesnotinfringe,orconstitutean
infringementormisappropriationof,anypatent,tradesecret,copyright,
orotherintellectualpropertyrightofanythirdparty,oraviolationof
theotherParty'ssoftwarelicenseagreementsorintellectualproperty
rightsdisclosedtoorknownbysuchParty.
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11.TERM
11.1.InitialTerm;Renewals
TheperiodduringwhichAcxiomshallbeobligatedtoprovidethe
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TheperiodduringwhichAcxiomshallbeobligatedtoprovidethe
ServicesunderthisAgreementshallcommenceontheEffectiveDateandend
onthefifth(5th)anniversaryoftheEffectiveDate;provided,however,
thatAllstatemay,initssolediscretion,extendtheTermforan
additionalfive(5)yearsbyprovidingwrittennoticedeliveredtoAcxiom
atleastninety(90)daysbeforetheendofthethencurrentinitialor
extendedTerm.AcxiomshallnotifyAllstateoftheexpirationoftheTerm,
andofanyrenewalthereof,noearlierthantwelve(12)months,norlater
thansix(6)months,beforethedateonwhichtheTermwouldexpire(ifnot
renewed).
11.2.ExtensionofTerminationDate
Allstatemay,atitssoleoptionanddiscretion,extendthe
effectivedateofanyexpirationorterminationoftheTermforuptosix
(6)successivethirtyday(30)periodsuponatleastfifteen(15)days'
priorwrittennoticetoAcxiom.
11.3.EarlyTermination
11.3.1.PartialTerminationofServicesbyAllstate
Allstateshallhavetherighttoterminateanyofthe
ServicesdescribedinSection3uponthirty(30)days'written
noticetoAcxiomifAllstatedetermines,initssolediscretion,
thatitnolongerhasneedforsuchServices;provided,however,
thatAllstatemaynotterminateanyServicespursuanttothis
Section11.3.1forthepurposeofengaginganothervendortoperform
suchServicesexceptasprovidedinSection5.4hereof.
11.3.2.ForConvenience
Allstateshallhavetherighttoterminateanyofthe
ServicesdescribedinSection3foritsconvenienceupontwelve(12)
months'writtennoticetoAcxiom.Allstateshallhavetherightto
endtheTermforitsconvenienceeffectiveat11:59p.m.onthe
intendeddateofterminationbydeliveringtoAcxiomawritten
noticeofterminationatleast12monthsbeforesaidintendeddate
oftermination.
11.3.3.ChangeinControlofAcxiom
IntheeventofachangeincontrolofAcxiomresulting
fromasingletransactionorseriesofrelatedtransactions,
AllstateshallhavetherighttoendtheTermuponten(10)days'
writtennoticetoAcxiom,providedthatAllstateshallhave
deliveredsuchnoticetoAcxiomnotlaterthan180daysfollowing
theeffectivedateofsuchchangeincontrol.Solelyforpurposesof
theprecedingsentence,"control"shallmeanthelegal,beneficial,
orequitable
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ownership,directorindirect,ofmorethanfiftypercent(50%)of
theaggregateofallvotingorequityinterestsinAcxiom;"change
incontrol"shallmeananychangeinthelegal,beneficial,or
equitableownership,directorindirect,suchthatcontrolofAcxiom
isnolongerwiththesameentityasontheEffectiveDate.
11.4.TerminationforMaterialDefault
Section21(DisputeResolution)hereofnotwithstanding,theTermmay
beendedbyeitherParty,bywrittennoticedeliveredtotheotherParty,
iftheotherPartycommitsaMaterialDefaultwhichremainsuncuredwithin
thetimespecifiedinSection2.24hereof.Terminationshallbeeffective
at11:59p.m.onthelastdayofanyapplicablecureperiod,orifnocure
periodisspecifiedonthedatespecifiedinthenotice,subjecttothe
provisionsofSection21.6hereof.
11.5.TerminationforForceMajeureEvent
IfadelayorinterruptionofperformancebyaPartyresultingfrom
itsexperiencingaForceMajeureEventexceedsthirty(30)days,thenthe
otherpartymayterminatetheTerm,effectiveat11:59p.m.ontheintended
dateoftermination,bydeliveringtothenonperformingPartywritten
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dateoftermination,bydeliveringtothenonperformingPartywritten
noticeofterminationspecifyingthedateoftermination.
11.6.EffectofEndingofTerm
TheexpirationorterminationoftheTerm,thoughendingthe
obligationofAcxiomtoprovidetheServices,willnotconstitutea
terminationoftheAgreement,whichwillcontinueineffectuntilallother
dutiesandobligationsofthePartieshavebeenperformed,discharged,or
excused.
12.Disentanglement
12.1.DisentanglementProcess
ConcurrentlywiththeexpirationorterminationoftheTerm(orany
Services)underanyoftheprovisionsofSection11,thefollowingshall
occur(collectively,a"Disentanglement"):
(a)Uponnoticeofterminationorintentionnottorenewthis
Agreement,thePartiesshallcooperatefullywithone
anothertofacilitateasmoothtransitionoftheServices
beingterminatedfromAcxiomtoAllstateorAllstate's
designatedreplacementprovider;
(b)WithoutlimitingtheobligationsofAcxiompursuantto
Section10.1above,Acxiomshall,subjecttothetermsof
anythirdpartycontracts,exerciseitsbesteffortsto
procureanythirdpartyauthorizationsnecessarytogrant
Allstatetheuseandbenefitofanythirdparty
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contracts(including,butnotlimitedto,softwarelicenses)
betweenAcxiomandthirdpartycontractorsthenbeing
utilizedbyAcxiominenablingittoprovidesuchServices;
(c)Acxiom'sobligationtoprovidetheServicesunderthis
Agreementshallceaseinamannerandoveraperiodoftime
consistentwiththeDisentanglementprocess,butinnoevent
longerthanone(1)year,duringwhichperiodAllstate
agreestopayAcxiomfortheServicesatthefeeswhichare
ineffectasofthedateofnoticeoftermination;
(d)Acxiomshall,subjecttothetermsofanyapplicable
softwarelicense,transfer,license,orsublicenseto
Allstateallproprietaryandthirdpartysoftware(including
butnotlimitedtoAcxiomCoreSoftware)thatwouldbe
neededinordertoallowAllstatetocontinuetoperformfor
itself,orobtainfromotherproviders,theServices,asthe
samemightexistatthetimeofDisentanglement;thelicense
feefortheAcxiomCoreSoftwareshallbeaonetimefeein
anamounttobeagreeduponbythepartiesor,intheevent
thePartiesareunabletoagreeupontheamountofthe
licensefee,athirdpartysoftwareconsultantjointly
selectedbythepartiesshalldeterminetheamountofthe
licensefeeandanyfeeschargedbysuchthirdparty
softwareconsultantshallbeevenlydividedbetweenthe
Parties;and
(e)AcxiomshalldelivertoAllstate,atAllstate'srequest,all
documentationanddatarelatedtoAllstateheldbyAcxiomor
anyofAcxiom'sPersonnel,andAcxiomshalldestroyall
copiesthereofnotturnedovertoAllstate.
12.2.PreparationforDisentanglement
InpreparationfortheDisentanglement:
(a)AcxiomshallprovidetoAllstatesufficientinformationand
cooperationtoenableAllstate'spersonnel,orthatofits
otherproviders,tofullyassumetheprovisiontoAllstate
oftheServices;
(b)AcxiomshallcooperatewithAllstateandallofAllstate's
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(b)AcxiomshallcooperatewithAllstateandallofAllstate's
otherserviceproviderstoensureasmoothtransitionatthe
timeofDisentanglement,withnointerruptionofServices,
noadverseimpactontheprovisionofServicesorAllstate's
activities,nointerruptionofanyservicesprovidedby
thirdparties,andnoadverseimpactontheprovisionof
servicesprovidedbythirdparties;
(c)Acxiomshallensurethattheassetsusedinprovidingthe
Serviceswillbemaintained,protected,andadequately
insuredthroughouttheTerm;
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(d)Acxiomshallobtainadvanceconsents(including,without
limitation,obtainingconsenttothetimeofenteringinto
allnewlicensestobeusedforthebenefitofAllstate)
fromAcxiom'slicensorstotheconveyanceorassignmentof
licensestoAllstateuponDisentanglement;and
(e)Acxiomshalltakesuchadditionalactionsandperformsuch
additionaltasksasmaybenecessarytoensureatimely
Disentanglementincompliancewiththeprovisionofthis
Section,includingfullperformance,onorbeforethedate
ofexpirationorterminationoftheTerm,ofAcxiom's
obligationsunderthisSection.
13.DEFAULT
13.1.Remedies
13.1.1.Allstate'sRemedies
IfAcxiomcommitsanuncuredMaterialDefaultunderthis
Agreement,AllstatewillbeentitledtoendtheTerminaccordance
withtheprovisionsofSection11.4(TerminationforMaterial
Default)hereof.TerminationshallnotconstituteaParty's
exclusiveremedyforsuchaMaterialDefault,andneitherParty
shallbedeemedtohavewaivedanyofitsrightsaccruinghereunder
priortosuchMaterialDefaultorotherwiseavailableatlaworin
equity.IfeitherPartyendstheTermasaresultofaclaimed,
uncorrectedMaterialDefaultbytheotherPartyandsuchotherParty
doesnotagreethataMaterialDefaultwascommitted,thensuch
otherPartyshallhavetherighttoavailitselfofallremedies
availabletoitunderthelaworinequity,noneofwhichis
exclusiveandanyorallofwhichmaybepursued.
13.1.2.Acxiom'sRemedies
IfAllstatecommitsanuncuredMaterialDefaultunderthis
Agreement,AcxiomwillbeentitledtoendtheTerm;provided,
however,thatiftheMaterialDefaultconcernsAllstate'sfailureto
payAcxiomthefeesspecifiedinSection8,Acxiomshallfirstgive
AllstatenoticeandanopportunitytocuresuchMaterialDefault
withinthirty(30)daysaftersuchnotice.Terminationshallnot
constituteaParty'sexclusiveremedyforsuchaMaterialDefault,
andneitherPartyshallbedeemedtohavewaivedanyofitsrights
accruinghereunderpriortosuchMaterialDefaultorotherwise
availableatlaworinequity.IfeitherPartyendstheTermasa
resultofaclaimed,uncorrectedMaterialDefaultbytheotherParty
andsuchotherPartydoesnotagreethataMaterialDefaultwas
committed,thensuchotherPartyshallhavetherighttoavail
itselfofallremediesavailabletoitunderthelaworinequity,
noneofwhichisexclusiveandanyorallofwhichmaybepursued.
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13.1.3.LimitationofLiability
Subjecttotheexpressprovisionsandlimitationsofthis
Section13.1.3,thePartiesintendthateachPartywillbeliableto
theotherPartyforalldamages(including,butnotlimitedto,
cover)incurredasaresultofthebreachingParty'sfailureto
performitsobligations.
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performitsobligations.
INNOEVENTSHALLEITHERPARTYBELIABLEFORANYSPECIAL,
INDIRECT,INCIDENTALORCONSEQUENTIALDAMAGES,INCLUDING,BUTNOT
LIMITEDTO,LOSTINCOMEORLOSTREVENUE.EXCEPTASOTHERWISE
EXPRESSLYPROVIDEDBELOW,EACHPARTY'SAGGREGATECUMULATIVE
LIABILITYHEREUNDERFORALLDIRECTDAMAGESARISINGUNDERORRELATING
TOTHISAGREEMENTNOTWITHSTANDINGTHEFORM(e.g.,CONTRACT,TORT,OR
OTHERWISE)INWHICHANYACTIONISBROUGHT,SHALLBELIMITEDTOTHE
GREATEROF:(i)ACXIOM'SNETREVENUEBILLEDLESSDIRECTDATAEXPENSE
WITHRESPECTTOTHESERVICESPROVIDEDHEREUNDEROUTOFWHICHTHE
LIABILITYAROSE;OR(ii)FIVEMILLIONDOLLARS($5,000,000).THE
FOREGOINGLIMITATIONUPONPROVIDER'SLIABILITYSHALLNOTAPPLYTO
CLAIMSSUBJECTTOINDEMNIFICATIONBYACXIOM(SECTION20)ORCLAIMS
WITHRESPECTTOABREACHOFCONFIDENTIALITY(SECTION17).
13.2.ForceMajeureEvents
IfaForceMajeureEventaffectsaParty'sperformancehereunder,
theaffectedobligations,afternotificationbysuchPartytotheother
Party,shallbedeemedsuspendeduntiltheForceMajeureEventhasended
andareasonableperiodoftimeforovercomingtheeffectsthereofhas
passed;provided,however,thatifthedelayorinterruptionofperformance
resultingfromaForceMajeureEventexceedsthirty(30)days,thenthis
AgreementmaybeterminatedsubjecttoSection11.5(TerminationforForce
MajeureEvent).BothPartiesshallusereasonableeffortstominimize
delaysthatoccurduetoaForceMajeureEvent.Notwithstandingtheabove,
Acxiomshallinnoeventbeexcusedfromthoseobligationsnotdirectly
affectedbyaForceMajeureEvent,andiftheForceMajeureEventiscaused
byAcxiom'sfailuretocomplywithanyofitsobligationsunderthis
AgreementorbyAcxiom'snegligenceoromission,thereshallbenorelief
fromanyofitsobligationsunderthisAgreement.
14.INSURANCE
14.1.GeneralRequirements
WithoutlimitingAcxiom'sundertakingtodefend,holdharmless,and
indemnifyAllstateIndemniteesasprovidedinSection20hereof,Acxiom
shallpurchaseandmaintaininsurancetoprotectAcxiomfromallclaimsof
thetypeset
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forthbelowthatariseoutoforresultfromAcxiom'soperations,services,
and/orperformanceunderthisAgreementandforwhichAcxiommaybeliable,
whethersuchoperations,services,and/orperformanceareprovidedby
AcxiomorbyanyofAcxiom'sagents,consultants,suppliers,or
subcontractorsorbyanyonedirectlyemployedbyanyofthem,orbyanyone
forwhoseactsanyofthemmaybeliable.
14.2.Coverages
Theinsurancerequiredhereundershallbewrittenfornotlessthan
thelimitsofcoveragespecifiedherein,orasrequiredbylawinany
jurisdictionwithauthorityoverAcxiom'soperations,services,and/or
performance,whicheverisgreater.Coverageshallbewrittenonan
occurrencebasis.
(a)Worker'sCompensationInsuranceofferingstatutorycoverageas
requiredbythelawsofthejurisdictioninwhichtheServices
areperformed.
(b)EmployersLiabilityInsurancewithlimitsofnotlessthanOne
MillionDollars($1,000,000.00)foreachaccidentordisease.
(c)CommercialGeneralLiabilityInsurancewithacombinedsingle
limitofnotlessthanOneMillionDollars($1,000,000.00)per
occurrenceforpersonalinjury(includingwrongfuldeath),and
broadformpropertydamageliabilityinclusiveofindependent
contractors,blanketcontractualliabilityforthisinsured
Agreementandproduct/completedoperationscoveragemaintained
fornotlessthantwo(2)yearsfollowingcompletionand
acceptanceofthework.
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(d)UmbrellaorExcessLiabilityInsurancewithlimitsnotless
thanFiveMillionDollars($5,000,000.00)peroccurrencewhich
willprovideadditionallimitsforcommercialgeneraland
automobileliabilityinsurance.
(e)ProfessionalLiabilityInsurancecoveringerrorsandomissions
withlimitsofnotlessthanFiveMillionDollars
($5,000,000.00)peroccurrence.Thepolicyshallhavean
extendedreportingperiodoftwo(2)years.Whenpoliciesare
renewedorreplaced,thepolicyretroactivedatemustcoincide
with,orprecede,thecommencementdateofservicesin
connectionherewith.
(f)AutomobileLiabilityInsurancewithalimitofnotlessthan
OneMillionDollars($1,000,000.00)peraccidentonvehicles
owned,leased,orrentedbyAcxiomandusedwhileperforming
underthisAgreement.
(g)FidelityBondcoveragewithlimitsofnotlessthanOneMillion
Dollars($1,000,000.00)peroccurrence.
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14.3.MiscellaneousRequirements
Acxiomshallcomplywiththefollowingtermsforallinsurance
coveragerequiredbySection14.2hereof:
(a)Acxiomshallprovideinsurancecoveragebyinsurancecompanies
havingpolicyholderratingsnolowerthan"A"andfinancial
ratingsnotlowerthan"XII"intheBest'sInsuranceGuide,
latesteditionineffectasofthedateofthisAgreement.
(b)AcxiomshallverifyandensurethatallofAcxiom'sagents,
consultants,suppliers,andsubcontractorsareadequately
insuredagainstclaimsarisingoutoforrelatingtotheir
performancerelatedtothisAgreement.
(c)ThePoliciesdescribedinclauses(c),(d),and(e)ofSection
14.2shallnameAllstateasanadditionalinsuredonaprimary
basis.
(d)Theinsurancepolicieslistedaboveshallnotberestrictedby
thecountryorstateinwhichtheServicesarebeingperformed.
InthecaseofServicesperformedoutsidetheUnitedStatesand
whenrequiredbylaw,theinsurancemustbeplacedwitha
companyadmittedtodobusinessinthatcountry.
(e)Theforegoinginsurancecoveragesshallbeprimaryand
noncontributingwithrespecttoanyotherinsuranceor
selfinsurancethatmaybemaintainedbyAllstateandits
subsidiariesandaffiliatesandshallcontainacrossliability
orseverabilityofinterestclause.ThefactthatAcxiomhas
obtainedtheinsurancerequiredinthisSection14.2shallin
nomannerlessennoraffectAcxiom'sotherobligationsor
liabilitiessetforthinthisAgreement.Acxiomshallsupply
certificatesofinsurancesatisfactorytoAllstateandallits
subsidiariesandaffiliates,demonstratingthatallofthe
insurancerequiredaboveisinforce,thatnotlessthanthirty
(30)days'writtennoticewillbegiventoAllstatepriorto
anycancellationorrestrictivemodificationofthepolicies,
andthatthewaiversofsubrogationareinforce.Atthe
requestofAllstateoranyofitssubsidiariesoraffiliates,
Acxiomshallprovideacertifiedcopyofeachinsurancepolicy
requiredunderthisAgreement.
15.REPORTS
15.1.General
AcxiomshallfurnishAllstatewithinformationandreportsinthe
formandwiththefrequency,butinnoeventlessfrequentlythanmonthly,
thatAllstatemayreasonablyrequestfromtimetotimeincluding,butnot
limitedto,thosereportsset
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limitedto,thosereportsset
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forthinSchedule15hereto.Acxiom'sreportsshallinclude(butnotbe
limitedto)informationregarding:Acxiom'sperformanceoftheServices;
costmanagement;subcontractorrelationships;andEndUsersatisfaction.
AcxiomshallpromptlyinformAllstateofanydeficiencies,omissions,or
irregularitiesinAllstate'srequirementsorinAcxiom'sperformanceofthe
ServicesthatmaycometoAcxiom'sattention.AcxiomshallfurnishAllstate
withallexistingandfutureresearchanddevelopmentresources,suchas
publishedmaterials,andindustrystudiesconductedfororbyAcxiom,that
cometoitsattentionandpertaintotheservicesandthatmightassist
AllstateinsettingitspoliciesorrequirementsunderthisAgreement.
15.2.Media
AcxiomshallfurnishAllstatewithallreportsinbothhardcopyand
electronicformperAllstate'sspecificationsasreasonablyrequestedby
Allstatefromtimetotime.
16.RECORDKEEPINGANDAUDITRIGHTS
16.1.Recordkeeping
Acxiomshallmaintaincompleteandaccuraterecordsandbooksof
accountwithrespecttothisAgreementutilizinggenerallyaccepted
accountingprinciples("GAAP"),consistentlyappliedandcomplyinginall
respectswithallapplicablelaws.Suchrecordsandbooks,andthe
accountingcontrolsrelatedthereto,shallbesufficienttoprovide
reasonableassurancethat:
(a)transactionsarerecordedsoastopermitthepreparationof
Acxiom'sfinancialstatementsinaccordancewithGAAPandto
maintainaccountabilityforitsassets;and
(b)therecordedaccountabilityforassetsiscomparedwiththe
existingassetsatreasonableintervalsandappropriateaction
istakenwithrespecttoanydifferences.
SuchrecordsandbooksofaccountofAcxiom'sbusinessshallbe
maintainedbyAcxiomatitsprincipalbusinessofficeandeachofthe
partiesmayexamineandmakeextractsofinformationandcopyanypart
thereofatanyreasonabletimeduringnormalbusinesshours.
Acxiomshallretainforaperiodoffour(4)yearsfromtheendof
eachcalendaryearduringtheTerm,orsuchlongerperiodasmaybe
requiredbylaw,allrecordsandinformationrequiredtoverifyamounts
invoicedunderthisAgreementforsuchcalendaryear.Allstate,oran
auditingfirmretainedbyAllstate,shallbegrantedaccesstothe
aforesaidrecordsduringnormalbusinesshoursuponreasonablenoticeto
Acxiom.
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16.2.AuditRights
Allstate,oritsauthorizedrepresentatives,willhavetheright,at
anytime,withoutanynotice,toperformanoperationalauditwithrespect
toAcxiom'sperformancehereunderincluding(butnotlimitedto)the
ServicesandanyobligationofAcxiomrelatedtosecurity.Acxiomshall
grantAllstateanditsrepresentativesfullandcompleteaccess,during
normalbusinesshoursanduponreasonablenotice,totherelevantportion
ofAcxiom'sbooksandrecordsastheyrelatetothisAgreement,orasthey
mayberequiredinorderforAllstatetoascertainanyfactsrelativeto
anyclaimagainstAcxiomthatmightbecomeachargeagainstAllstateorits
property.AcxiomshallprovideAllstate,oritsauthorized
representatives,suchinformationandassistanceasreasonablyrequestedin
ordertoperformsuchaudits.Ifanysuchauditrevealsamaterial
inadequacyorinsufficiencyofAcxiom'sperformance,thenthecostofsuch
auditshallbebornebyAcxiom.Withrespecttoanyauditthatrelatesto
sumstobepaidhereunder,ifanysuchauditrevealsthatAcxiomhas
overchargedAllstateinanamountinexcessoffivepercent(5%)abovethe
feesspecifiedinanyScheduleheretoduringtheperiodtowhichtheaudit
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feesspecifiedinanyScheduleheretoduringtheperiodtowhichtheaudit
relates,thenthecostofsuchauditshallbebornebyAcxiom.
16.3.OpenBookPolicy
SubjecttothetermsoftheSpecialconfidentialityAgreement
attachedheretoasExhibit_____.AcxiomshallprovideAllstate,ona
quarterlybasis,fullandcompletereportsofitscurrentfinancialplans,
accountingrecords,andoperationalplansrelatedtothisAgreement,
including(butnotlimitedto)itsplansandrecordsregardingthecostand
profitabilityofprovidingServicestoAllstate.Acxiomshallpromptly
respondtoanyquestionsregardingsuchreports.
17.CONFIDENTIALITY
17.1.DisclosureofConfidentialInformation
EachPartyshall:
(a)usethesamecaretopreventdisclosureoftheConfidential
InformationoftheotherPartytothirdpartiesasitemploys
toavoiddisclosure,publication,ordisseminationofitsown
informationofasimilarnature,butinnoeventlessthana
reasonablestandardofcare;
(b)usetheConfidentialInformationoftheotherPartysolelyfor
thepurposeofperformingitsobligationsunderthisAgreement;
(c)notacquireanyrightinorassertanylienagainst
ConfidentialInformationoftheotherParty;and
(d)promptlyreturn,orprovideacopyof,astherequestingParty
directs,ConfidentialInformationupontherequestoftheother
Party.
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(e)Notwithstandingtheforegoing,eachPartymaydisclose
ConfidentialInformationoftheotherPartytoitsemployees,
agents,andsubcontractorswhohave:(i)aneedtoknowsuch
ConfidentialInformationinordertoperformtheirduties;and
(ii)alegaldutytoprotecttheConfidentialInformation.A
PartyreceivingConfidentialInformationoftheotherParty
assumesfullresponsibilityfortheactsoromissionsofits
subcontractorsandemployeeswithrespecttosuchConfidential
Information.
17.2.RequiredDisclosure
EitherPartymaydiscloseConfidentialInformationtotheextent
requiredbylaworbyorderofacourtorgovernmentalagency;provided,
however,thattherecipientofsuchConfidentialInformationshallgivethe
ownerofsuchConfidentialInformationpromptnoticeandshalluseitsbest
effortstocooperatewiththeownerofsuchConfidentialInformationifthe
ownerwishestoobtainaprotectiveorderorotherwiseprotectthe
confidentialityofsuchConfidentialInformation.Theownerofsuch
ConfidentialInformationreservestherighttoobtainaprotectiveorderor
otherwiseprotecttheconfidentialityofsuchConfidentialInformation.
Further,eitherpartymaydisclosethetermsofthisAgreementtothe
extentrequiredtoenforceitstermsortherightsofsuchParty.
17.3.Notification
IntheeventofanydisclosureorlossofConfidentialInformation,
thereceivingPartyshallimmediatelynotifythedisclosingParty.
17.4.InjunctiveRelief
EachPartyacknowledgesthatanybreachofanyprovisionofthis
Section17byeitherParty,oritspersonnelorsubcontractors,willcause
immediateandirreparableinjurytotheotherParty,andintheeventof
suchbreach,theinjuredPartyshallbeentitledtoinjunctiverelief,
withoutbondorothersecurity,andtoanyandallotherremediesavailable
atlaworinequity.
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17.5.ReturnofConfidentialInformation
UnlessitisexpresslyauthorizedbythisAgreementtoretainthe
otherParty'sConfidentialInformation,aPartyshallpromptlyreturnor
destroy,attheotherParty'soptionandrequest,theotherParty's
ConfidentialInformationandallcopiesthereof,andshallcertifytothe
otherPartythatitnolongerhasinitspossessionorunderitscontrol
anyConfidentialInformationinanyformwhatsoever,oranycopythereof.
18.LEGALCOMPLIANCE
BothAcxiomandAllstateshallatalltimesperformtheirobligations
hereunderincomplianceinallmaterialrespectswithallapplicablenational,
state,andlocallawsand
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regulationsofallapplicablejurisdictions,andinsuchamannerasnotto
causetheothertobeinmaterialviolationofanyapplicablelawsor
regulationsincluding(butnotlimitedto)theU.S.FairCreditReportingAct,
asamendedbytheConsumerCreditReportingReformActof1996,15U.S.C.1681,
etseq.("FCRA"),anysimilarstateprivacylaws,andanyapplicable
requirementsofanynational,state,orlocalauthorityregulatingcredit
reporting,insurance,health,safety,employment,theenvironment,or
telecommunications.Ifanysuchlawsandregulationsarechanged,ornewlawsor
regulationsareenactedafterthedateofAcxiom'sexecutionofthisAgreement
andAcxiom'scosttoperformistherebydirectlyincreasedordecreased,the
amountsotherwisetobepaidtoAcxiompursuanttoanyoftheprovisionsofthis
AgreementmaybeadjustedasthePartiesshallmutuallyagree.
WithrespecttoconsumerreportsthatarepurchasedbyAcxiomatAllstate's
request,AllstateherebycertifiesthatitoritsAffiliateswillbetheend
user(s)ofsuchreportsandthatsuchreportswillbeusedforthefollowing
purposesandfornootherpurposes:(a)inconnectionwiththeunderwriting
(includingrating)ofinsurance;and/or(b)inconnectionwiththewritten
consentoftheconsumer.ThePartiesacknowledgethateachoftheabove
purposesconstitutesapermissiblepurposeundertheFCRA.Allstatewill
maintaincopiesofconsumers'writtenconsentsandwillmakesuchcopies
availabletoAcxiomreasonablypromptlyuponreceiptofAcxiom'swritten
request.Allstateagreesthateveryrequestforaconsumerreportwill
constitutearecertificationtoAcxiomatthetimeoforderingsuchreportthat:
(x)Allstateand/oritsAffiliateswillbetheenduser(s)ofsuchreport;(y)
suchreportisbeingrequestedforastatedpermissiblepurpose;and(z)the
reportwillbeusedfornopurposeotherthanthestatedpermissiblepurpose.
19.RepresentationsandWarranties
19.1.Acxiom'sRepresentations,Warranties,andCovenants
19.1.1.PerformanceoftheServices
AcxiomwarrantsthatallServicesprovidedhereunderwill
beperformedtothebestofAcxiom'sabilityandinagood
workmanlikemannerandthatmaterialsprovidedbyAcxiomhereunder
willconformtoandperforminaccordancewiththespecifications
statedhereinandineachSchedule,ifapplicable,andinall
associateddocumentation.Acxiomshallmanagethirdpartyvendor
relationships,qualityofdataAcxiomfurnishestoAllstate,and
costsofdatainamannerconsistentwiththetermsandspiritof
thisAgreement.
19.1.2.ProprietaryRightsInfringement
AcxiomcovenantsthatatnotimeduringtheTermshallthe
useofanyservices,techniques,orproductsprovidedorusedby
Acxiominfringeuponanythirdparty'spatent,trademark,copyright,
orotherproprietaryorintellectualpropertyright,normakeuseof
anymisappropriatedtradesecrets.
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19.1.3.AdherencetoSpecifications
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TheSoftware,includingallenhancements,modifications,
andnewreleasesthereof,willoperateinaccordancewiththe
specificationsanddocumentationprovidedtoAllstate.Foraperiod
ofninety(90)daysfromAllstate'swrittenacceptanceofany
SoftwareinstalledatAllstate'sfacilities,Acxiomwillcorrect,
withoutchargetoAllstate,anyerrorswhichcausetheSoftwareto
failtoperforminaccordancewiththerelevantspecifications.This
warrantywillnotapplytotheextentthatsucherrorisaresultof
modificationsperformedbyapartynotemployedbyorunderthe
controlofAcxiom.ForallSoftwarenotinstalledatAllstate's
facilities,Acxiomwillcorrectallmalfunctionswithoutchargeto
AllstateduringtheTermofthisAgreement.
19.1.4.WarrantyastoViruses
AcxiomwarrantsthattheSoftware(andanyportionthereof)
doesnotcontainanytimer,clock,counter,virusorotherlimiting
design,routineorinstructions:(i)whichhavedestructive
capabilities;(ii)whichcausetheSoftware(oranyportionthereof)
tobecomeerased,inoperableorotherwiseincapableofbeingusedin
thefullmannerforwhichitwasdesignedandlicensedpursuantto
thisAgreement(includingbutnotlimitedtoanydesignorroutine
thatwouldimpedecopyingthereof);(iii)whichwouldrenderany
hardwareorsoftwareinoperable;or(iv)whichwouldcausedatato
becomealtered,damagedorremoved.Furthermore,theSoftwaredoes
notcontainanylimitingdesignorroutinewhichwouldcauseitto
beerased,becomeinoperable,orotherwiseincapableofbeingused
inthefullmannerforwhichitwasdesignedandlicensedpursuant
tothisAgreementsolelybecausesuchSoftwarehasbeeninstalledor
movedtoacentralprocessingunitorsystemwhichhasaserial
number,modelnumber,orotheridentificationdifferentfromthaton
whichtheSoftwarewasoriginallyinstalled.
19.1.5.WarrantyofYear2000Compliance
Acxiomwarrantsthattheuse,processingoroccurrenceof
thedateJanuary1,2000oranysubsequentdate("MillennialDates")
willnotadverselyaffecttheperformanceoftheSoftwarewith
respecttodatedependentdata,computations,outputorother
functions(including,butnotlimitedto,calculating,comparing,
searching,andsequencing)andthattheSoftwarewillcreate,store,
processandoutputinformationrelatedtoorincludingMillennial
Dateswithouterrororomissionsandatnoadditionalcostto
Allstate.AtAllstate'srequest,Acxiomwillprovideevidence
sufficienttodemonstrateadequatetestingoftheSoftwaretomeet
theforegoingrequirements.
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19.1.6.LegalandCorporateAuthority
Acxiomrepresentsandwarrantsthat:itisacorporation
dulyformedandingoodstandingunderthelawsofArkansasandis
qualifiedandregisteredtotransactbusinessinalllocationswhere
theperformanceofitsobligationshereunderwouldrequiresuch
qualification;ithasallnecessaryrights,powers,andauthorityto
enterintoandperformthisAgreement,andtheexecution,delivery,
andperformanceofthisAgreementbyAcxiomhavebeenduly
authorizedbyallnecessarycorporateaction;andtheexecutionand
performanceofthisAgreementbyAcxiomwillnotviolateanylaw,
statute,orregulationandwillnotbreachanyagreement,covenant,
courtorder,judgment,ordecreetowhichAcxiomisapartyorby
whichitisbound.Acxiomrepresentsandwarrantsthatithas,and
covenantsthatitshallmaintainineffect,alllicensesandpermits
necessaryforittoprovidetheServicescontemplatedbythis
Agreement.AcxiomrepresentsandwarrantsthatAcxiomownsorleases
andcovenantsthatitwillownorlease,freeandclearofallliens
andencumbrances,otherthanlessors'interests,orsecurity
interestsofAcxiom'slenders,allright,title,andinterestinand
tothetangiblepropertyandtechnologyandthelikethatAcxiom
intendstouseorusestoprovidesuchServicesandinandtothe
relatedpatent,copyright,trademark,andotherproprietaryrights,
orhasreceivedappropriatelicenses,leases,orotherrightsfrom
thirdpartiestopermitsuchuse.
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thirdpartiestopermitsuchuse.
19.2.Allstate'sRepresentations,WarrantiesandCovenants
19.2.1.LegalandCorporateAuthority
Allstaterepresentsandwarrantsthat:itisacorporation
dulyformedandingoodstandingunderthelawsofIllinoisandis
qualifiedandregisteredtotransactbusinessinalllocationswhere
theperformanceofitsobligationshereunderwouldrequiresuch
qualification;ithasallnecessaryrights,powers,andauthorityto
enterintoandperformthisAgreement;theexecution,delivery,and
performanceofthisAgreementbyAllstatehavebeendulyauthorized
byallnecessarycorporateaction;andtheexecutionandperformance
ofthisAgreementbyAllstatewillnotviolateanylaw,statute,or
regulationandwillnotbreachanyagreement,covenant,courtorder,
judgment,ordecreetowhichAllstateisapartyorbywhichitis
bound.
19.2.2.Other
Allstatedoesnotmakeanyrepresentationorwarrantywith
respecttotheServicesoranycomponentthereof.Allhardware,
software,networksandotherinformationtechnologyrelatedassets
madeavailableorconveyedbyAllstatetoAcxiomunderthis
AgreementaremadeavailableorconveyedtoAcxiom"ASIS,WHEREIS"
andtherearenowarrantiesofanykindwith
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respecttothecondition,capabilities,orotherattributesofsuch
items,exceptasotherwiseexpresslystatedinthisAgreement.
19.3.Disclaimer
EXCEPTASEXPRESSLYSTATEDINTHISAGREEMENT,THEREARENO
EXPRESSWARRANTIESBYEITHERPARTY.THEREARENOIMPLIEDWARRANTIES
ORCONDITIONS,INCLUDINGTHEIMPLIEDWARRANTIESOFMERCHANTABILITY
ORFITNESSFORPARTICULARPURPOSE.
20.INDEMNIFICATION
20.1.Technology
20.1.1.IndemnitybyAcxiom
Acxiomshalldefend,indemnify,andholdtheAllstate
Indemniteesharmlessfromandshallpayallfinaldamagesandcosts
awardedagainstanyofthemarisingoutof,anyclaimbroughtbyany
thirdpartyagainstanyofthemforactualorallegedinfringement
ofanypatent,trademark,copyright,orsimilarpropertyright
includingmisappropriationoftradesecrets,basedupontechnology
ordatausedbyAcxiominprovidingtheServices(collectively,
"InfringementClaim");andAcxiomshalldefend,indemnify,andhold
theAllstateIndemniteesharmlessfromandagainstanyandall
liabilities,losses,costs,damages,andexpenses,including
reasonableattorney'sfees,associatedwithanysuchclaimoraction
incurredbyanyoftheminconnectionwithanyInfringementClaim
thatinvolvestechnologyprovidedordevelopedbyAcxiom.Acxiom
may,initsreasonablediscretion,eitherprocurealicenseto
enableAllstatetocontinuetousesuchtechnologyordataor
developorobtainanoninfringingsubstituteacceptableto
Allstate.Acxiomwillhavenoobligationwithrespecttoanyclaim
oractiontotheextentthatitisbasedsolelyupon:(i)
modificationofaprogramormachinebyAllstate,anythirdparty
contractortoAllstate,oranyagentofAllstate;(ii)dataprovided
byAllstatetoAcxiom;(iii)Allstate'scombination,operationor
usewithapparatus,dataorprogramsneitherfurnishednorapproved
byAcxiom;(iv)theusebyAllstateofanysoftwareprovidedbyany
thirdpartyotherthaninaccordancewithrelevantsoftwarelicenses
whetherornotsuchlicenseagreementsareprovidedtoAcxiom;or
(v)theuseofsoftwareownedbyorlicensedtoAllstatebyaparty
otherthanAcxiomandsuppliedbyAllstatetoAcxiom.
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20.1.2.IndemnitybyAllstate
Allstateshalldefend,indemnify,andholdtheAcxiom
Indemniteesharmlessfromandshallpayallfinaldamagesandcosts
awardedagainstanyofthemarisingoutof,anyclaimbroughtbyany
thirdpartyagainstanyofthemforactualorallegedinfringement
ofanypatent,trademark,copyright,orsimilarpropertyright
includingmisappropriationoftradesecrets,baseduponsoftware
thatisproprietarytoAllstate.Allstatemay,initsreasonable
discretion,eitherprocurealicensetoenableAcxiomtocontinueto
usesuchtechnologyordeveloporobtainanoninfringing
substitute.Allstateshallhavenoobligationwithrespecttoany
claimoractiontotheextentthatitisbasedsolelyupon:(i)
modificationofaprogramormachinebyAcxiom,anythirdparty
contractortoAcxiom,oranyagentofAcxiom;(ii)Acxiom's
combination,operation,orusewithapparatus,data,orprogramsnot
furnishedbyAllstate;(iii)theusebyAcxiomofanysoftware
providedbyanythirdpartyotherthaninaccordancewithrelevant
softwarelicenseswhetherornotsuchlicensesareprovidedto
Allstate;or(iv)theuseofsoftwareownedbyorlicensedtoAcxiom
byapartyotherthanAllstateandsuppliedbyAcxiomtoAllstate.
20.2.InjuryorPropertyDamage
WithoutlimitingAcxiom'sobligationswithrespectto
insuranceasprovidedinSection14hereof,Acxiomshallindemnify,
defend,andholdtheAllstateIndemniteesharmlesswithrespectto
anythirdpartyclaimallegingbodilyinjury,includingdeath,or
damagetotangiblepersonalorrealproperty,totheextentthat
suchinjuryordamagearisesfromphysicalactsoromissionsthat
constitutenegligence,willfulmisconduct,orviolationsoflawby
Acxiomoritspersonnel,agents,orsubcontractors.
Allstateshallindemnify,defend,andholdtheAcxiom
Indemniteesharmlesswithrespecttoanythirdpartyclaimalleging
bodilyinjury,includingdeath,ordamagetotangiblepersonalor
realproperty,totheextentthatsuchinjuryordamagearisesfrom
physicalactsoromissionsthatconstitutenegligence,willful
misconduct,orviolationsoflawbyAllstateoritspersonnel,
agents,orsubcontractors.
20.3.Employees
Acxiomshallindemnify,defendandholdharmlesstheAllstate
Indemnitees,fromandagainstanyandallliabilities,losses,taxes,
withholdings,claims,demands,damages,judgments,andcostsandexpenses,
includingreasonableattorneys'fees,
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baseduponclaimsagainstanyofthemthatariseoutoforinconnection
with(i)anyaspectoftheemploymentrelationshiportheterminationof
theemploymentrelationshipbetweenAcxiomandAcxiom'semployeesassigned
toprovidetheServiceshereunder,excepttotheextentsuchliabilityis
causedbyAllstate'sactsoromissions;(ii)anyactionbroughtbyanyof
Acxiom'sPersonnelseekingtobetreatedasAllstateemployeesand/or
claimingentitlementtoanyofAllstate'semployeebenefits;(iii)any
actionseekingtodeclareAllstateasajointemployerwithAcxiomofany
ofAcxiom'sPersonnelprovidingservicestoAllstatehereunder;(iv)any
determinationresultingfromorpursuanttoanyarbitrationproceeding,
courtproceedingbyacourtofcompetentjurisdiction,administrative
proceedingorothersimilarproceedingthatAllstatewastheemployerof
anyofAcxiom'sPersonnelprovidingservicestoAllstatehereunder;or(v)
theft,fraud,ormisappropriationbyAcxiomoritsAffiliatesortheir
respectiveofficers,employees,agents,subcontractors,orsuccessors,of
tangibleorintangiblepropertyofAllstate.
20.4.ThirdPartyMatters
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20.4.ThirdPartyMatters
Acxiomshalldefend,indemnify,andholdtheAllstate
Indemniteesharmlessfromandagainstanyandallclaimsbyany
thirdparties,andanyandallliabilities,losses,costs,damages,
andexpenses,includingreasonableattorney'sfees,baseduponor
relatedtothirdpartyservicesutilizedbyAcxiominproviding
Services.
20.4.2.MutualIndemnities
EachPartyshalldefend,indemnify,andholdtheother
Party'sIndemniteesharmlessfromandagainstclaimsbythird
partiesbaseduponanallegedbreachofanyagreementbetweenthe
indemnifyingpartyandsuchthirdparty.
20.5.Misrepresentation
Acxiomshallindemnify,defend,andholdharmlessthe
AllstateIndemniteesfromandagainstanyclaimbyanythirdparty
andanyandallloss,liability,damages,costs,andexpenses,
includingreasonableattorney'sfees,sustainedorincurredbysuch
IndemniteeasadirectresultofanymisrepresentationbyAcxiomin
thisAgreementoranybreachordefaultbyAcxiomwithrespectto
anywarranty,promise,agreement,duty,orobligationofAcxiom
containedinthisAgreement.
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<PAGE>
Allstateshallindemnify,defend,andholdharmlessthe
AcxiomIndemniteesfromandagainstanyclaimbyanythirdpartyand
anyandallloss,liability,damages,costs,andexpenses,including
reasonableattorney'sfees,sustainedorincurredbysuchIndemnitee
asadirectresultofanymisrepresentationbyAllstateinthis
AgreementoranybreachordefaultbyAllstatewithrespecttoany
warranty,promise,agreement,duty,orobligationofAllstate
containedinthisAgreement.
20.6.Subrogation
IfanindemnifyingPartyshallbeobligatedtoindemnifyan
IndemniteepursuanttothisSection20,theindemnifyingPartyshall,upon
paymentofsuchindemnityinfull,besubrogatedtoallrightsofthe
Indemniteewithrespecttotheclaimsanddefensestowhichsuch
indemnificationrelates.
20.7.Procedures
IfanylegalactioniscommencedagainstanIndemniteeentitledto
indemnificationunderthisSection20,promptwrittennoticethereofshall
begiventotheindemnifyingParty.Aftersuchnotice,iftheindemnifying
PartyshallacknowledgeinwritingtosuchIndemniteethattherightof
indemnificationunderthisAgreementapplieswithrespecttosuchclaim,
thentheindemnifyingPartyshallbeentitled,ifitsoelects,ina
writtennoticedeliveredtotheIndemniteenotfewerthanten(10)days
priortothedateonwhicharesponsetosuchclaimisdue,totakecontrol
ofthedefenseandinvestigationofsuchclaimandtoemployandengage
attorneysofitssolechoice,andreasonablysatisfactorytothe
indemnifiedParty,tohandleanddefendsame,attheindemnifyingParty's
expense.TheIndemniteeshallcooperateinallreasonablerespectswith
theindemnifyingPartyanditsattorneysintheinvestigation,trial,and
defenseofsuchclaimandanyappealarisingtherefrom;provided,however,
thattheIndemniteemay,atitsownexpense,participate,throughits
attorneysorotherwise,insuchinvestigation,trial,anddefenseofsuch
claimandanyappealarisingtherefrom.Nosettlementofaclaimthat
involvesaremedyotherthanthepaymentofmoneybytheindemnifyingParty
shallbeenteredintobytheindemnifyingPartywithoutthepriorwritten
consentoftheIndemnitee,whichconsentmaybegivenorwithheldinthe
Indemnitee'ssolediscretion,totheextentthatitconcernsequitable
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Indemnitee'ssolediscretion,totheextentthatitconcernsequitable
remediesortheIndemnitee'sConfidentialInformationorproprietary
technology.AfternoticebytheindemnifyingPartyofitselectionto
assumefullcontrolofthedefenseofanysuchclaim,theIndemniteeshall
notbeliabletotheindemnifyingPartyforanylegalexpensesincurred
thereafterbysuchindemnifyingPartyinconnectionwiththedefenseof
thatclaim.IftheindemnifyingPartydoesnotassumefullcontrolover
thedefenseofaclaimsubjecttosuchdefenseasprovidedinthisSection,
theindemnifyingPartymayparticipateinsuchdefense,atitsexpense,and
theIndemniteeshallhavetherighttodefendtheclaiminsuchmanneras
itmaydeemappropriate,attheexpenseoftheindemnifyingParty.
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<PAGE>
21.DISPUTERESOLUTION
21.1.GeneralIntent
ThePartiesintendthatallproblemsanddisputesbetweenthe
partiesofanynaturerelatingtothisAgreementorarisingfromthe
transactionscontemplatedherebywillberesolvedthroughtheproceduresof
thisSection21,provided,however,thatneitherpartyshallbeunderany
obligationtoinvoketheproceduresofthisSection21withrespectto
disputesconcerninganyallegedbreachofSection17(Confidentiality)or
Section20(Indemnification)hereoforanyotherdisputeforwhich
injunctivereliefissought.TheproceduresinthisSection21willnot
replaceorsupersedeanyotherremedytowhichapartyisentitledunder
thisAgreementorunderapplicablelaw.Moreover,theprocedureswillnot
beconstruedasanagreementtoarbitrateormediateanydispute.Itisthe
intentionofthePartiesthattheycontinuetoperformtheirrespective
dutiesduringthependencyofanydisputesubjecttothisSection21.
21.2.ContractManagerLevel
Thepartieswillinitiallyattempttoresolvedisputesarisingin
theordinarycourseofthepartiesperformanceunderthisAgreement,atthe
ContractManagerlevelbythosedirectlyinvolved.
21.3.Escalation
21.3.1.FirstEscalation
If,afterareasonableperiodoftime,nottoexceedfive
(5)businessdays,theContractManagershavenotbeenableingood
faithtoresolveanydispute,eachpartywillprepareawritten
statementoutliningthedisputeandattemptedresolutionandwill
submitthestatementtoProcurementGovernanceOfficerorsuchother
officerasidentifiedbyAllstateandtoAcxiom'sASBUBusinessUnit
Leaderwhowilldiscussthedispute(eitherinpersonorby
telephone)andwillattemptingoodfaithtoresolvethedispute.
21.3.2.SecondEscalation
If,afterareasonableperiodoftime,nottoexceedten
(10)businessdaysafterreceivingthewrittenstatementpursuantto
Section21.3.1,thepersonsdescribedinSection21.3.1havenot
beenableingoodfaithtoresolvethedispute,thewritten
statementshallbeforwardedtoAllstate'sVicePresidentof
ProcurementGovernanceandtoAcxiom'sGroupLeaderorAcxiom
ServicesDivisionLeaderwhowilldiscussthedisputeinpersonand
willattemptingoodfaithtoresolvethedispute.
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<PAGE>
21.4.CriticalProblems
Ifthedisputeorproblemisrelatedtoacriticalprobleminwhich
dataiscorruptedortheServicesarebeingperformedinamannerthat
causesfinancialliabilitytoAllstateandtheContractManagersareunable
toresolvesuchdisputeorproblemwithinfortyeight(48)hours(twenty
four(24)hoursiftheproblemisrelatedtotheinteractiveordering
process)afterhavingreceivednoticeofsuchdisputeorproblem,thenthe
problemshallbeimmediatelyescalatedtotheexecutivesspecifiedin
Section21.3.2.NotwithstandingtheprovisionsofSection21.3.2above,
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Section21.3.2.NotwithstandingtheprovisionsofSection21.3.2above,
theexecutivesshallusetheirbesteffortstoresolvethedisputeor
problemwithinfortyeight(48)hoursaftertheescalationtothem.
21.5.LegalAction
IfeitherPartybelievesingoodfaiththatthetimeframes
describedinthisSection21willhaveamaterialadverseimpactonsuch
party,thenthisSection21shallbedeemedtoapplynolongertosuch
disputeandthePartiesmaytakeanylegalactioninacourtoflawor
equitytoassertorenforceaclaimithasagainsttheotherPartyunder
thisAgreement.
21.6.NoTerminationorSuspensionofServices
Notwithstandinganythingtothecontrarycontainedherein,andeven
ifanyProblemorotherdisputearisesbetweenthePartiesandregardless
ofwhetherornotitrequiresatanytimetheuseofthedisputeresolution
proceduresdescribedabove,innoeventnorforanyreasonshallAcxiom
interrupttheprovisionofServicestoAllstateoranyobligationsrelated
toDisentanglement,disableanyhardwareusedtoprovideServices,or
performanyotheractionthatprevents,slowsdown,orreducesinanyway
theprovisionofServicesorAllstate'sabilitytoconductitsactivities,
unless:(i)authoritytodosoisgrantedbyAllstateorconferredbya
courtofcompetentjurisdiction;(ii)theTermofthisAgreementhasbeen
terminatedorexpiredpursuanttoSection11hereofandaDisentanglement
satisfactorytoAllstatehasoccurred,or(iii)Allstatehasfailedtopay
AcxiomanyundisputedamountsduetobepaidunderthisAgreement,after
havingreceivedwrittennoticeofsuchfailureandtherelevantcureperiod
hasexpired.
22.PUBLICITY
EachPartyshallsubmittotheotheralladvertising,writtensales
promotion,pressreleases,andotherpublicitymattersrelatingtothis
AgreementinwhichtheotherParty'snameormarkismentionedorlanguagefrom
whichtheconnectionofsaidnameormarkmaybeinferredorimplied,and
neitherPartyshallpublishorusesuchadvertising,salespromotion,press
releases,orpublicitymatterswithoutthepriorwrittenapprovaloftheother
Party.However,eitherPartymayincludetheotherParty'snameandamutually
agreedfactualdescriptionoftheworkperformedandthepreferentialrights
grantedwithrespecttheretounderthisAgreementinemployeecommunications,in
itscommunicationswithstockanalysts
43
<PAGE>
andinvestors;initslistofreferences,intheexperiencesectionofproposals
tothirdparties,ininternalbusinessplanningdocuments,initsorits
Affiliates'annualreporttostockholders,andwheneverrequiredbyreasonof
legal,accounting,orregulatoryrequirements.
23.USEOFAFFILIATESANDSUBCONTRACTORS
AcxiomshallnotperformitsobligationsthroughitsAffiliatesorthrough
theuseofAcxiomselectedindependentcontractors,includinghardwareand
software,withouttheadvancewrittenconsentofAllstate,whichconsentmaybe
withheldinAllstate'ssolediscretion,andAcxiomshallnotberelievedofits
obligationsunderthisAgreementbyuseofanysuchAffiliatesor
subcontractors;providedthatAcxiommaysubcontractforgoodsandservicesthat
areincidentaltotheperformanceoftheServices,donotinvolvethe
acquisitionofdata,anddonotinvolvetheexpenditureofmorethanTwoHundred
FiftyThousandDollars($250,000)withinanyninety(90)dayperiod.Acxiom
shallberesponsibleforsupervisingtheactivitiesandperformanceofeach
subcontractorandshallbejointlyandseverallyresponsiblewitheach
subcontractorforanyactorfailuretoactofsuchsubcontractor.IfAllstate
determinesthattheperformanceorconductofanyAcxiomsubcontractoris
unsatisfactory,AllstatemaynotifyAcxiomofitsdeterminationinwriting,
indicatingthereasonstherefor,inwhicheventAcxiomshallpromptlytakeall
necessaryactionstoremedyimmediatelytheperformanceorconductofsuch
contractorortoreplacesuchcontractorbyanotherthirdpartyorbyAcxiom
personnel.
24.MISCELLANEOUS
24.1.EntireAgreement
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24.1.EntireAgreement
ThisAgreement,includingtheSchedulesandExhibitshereto,
constitutestheentireunderstandingandagreementbetweenthePartieswith
respecttothetransactionscontemplatedhereinandsupersedesallprioror
contemporaneousoralorwrittencommunicationswithrespecttothesubject
matterhereof.Nousageoftrade,orotherregularpracticeormethodof
dealingbetweenthePartiesorothers,maybeusedtomodify,interpret,
supplement,oralterinanymannertheexpresstermsofthisAgreement.
24.2.Captions;SectionNumbers
Captions,TablesofContents,IndicesofDefinitions,andSchedule
andExhibittitlesareusedhereinforconvenienceonlyandmaynotbeused
intheconstructionorinterpretationofthisAgreement.Anyreference
hereintoaparticularSectionnumber(e.g.,"Section2"),shallbedeemed
areferencetoallSectionsofthisAgreementthatbearsubnumberstothe
numberofthereferencedSection(e.g.,Sections2.1,2.1.1,etc.).
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<PAGE>
24.3.Assignment
ExceptforsubcontractingpermittedunderthetermsofSections23
hereof,neitherthisAgreement,noranyinteresttherein,noranyofthe
rightsandobligationsofAcxiomhereunder,maybedirectlyorindirectly
assigned,sold,delegated,orotherwisedisposedofbyAcxiom,inwholeor
inpart,withoutthepriorwrittenconsentofAllstate,whichmaybe
withheldinitssolediscretion.ForpurposesofthisSection,an
"assignment"shallalsobedeemedtohaveoccurreduponachangeincontrol
ofAcxiomresultingfromasingletransactionorseriesofrelated
transactions,orarestructuringofAcxiom,ortransferorremovalof
assetsfromAcxiomorassumptionofdebtbyAcxiomsuchthatasaresultof
suchrestructuring,transfer,removal,orassumptionAcxiomnolonger
possessesanetworthequaltoorgreaterthanthatofAcxiomonthe
EffectiveDate.Solelyforpurposesoftheprecedingsentence,"control"
shallmeanthelegal,beneficial,orequitableownership,director
indirect,ofmorethanfiftypercent(50%)oftheaggregateofallvoting
equityinterestsinAcxiom;"changeincontrol"shallmeananychangein
thelegal,beneficial,orequitableownership,directorindirect,such
thatcontrolofAcxiomisnolongerwiththesameentityasonthe
EffectiveDate.
24.4.NoticestoaParty
Exceptasexpresslyotherwisestatedherein,allnotices,requests,
consents,approvals,orothercommunicationsprovidedfor,orgivenunder,
thisAgreement,shallbeinwriting,andshallbedeemedtohavebeenduly
giventoaPartyifdeliveredpersonally,ortransmittedbyfacsimileto
suchPartyatitstelecopiernumbersetforthbelow,orsentbyfirstclass
mailorovernightcouriertosuchPartyatitsaddresssetforthbelow,or
atsuchothertelecopiernumberoraddress,asthecasemaybe,asshall
havebeencommunicatedinwritingbysuchPartytotheotherPartyin
accordancewiththisSection.Allnoticeswillbedeemedgivenwhen
receivedinthecaseofpersonaldeliveryordeliverybymailorovernight
courier,orwhensentinthecaseoftransmissionbyfacsimilewitha
confirmation,ifconfirmedbycopysentbyovernightcourierwithinone(1)
dayofsendingthefacsimile.
NoticestoAllstateshallbeaddressedasfollows:
AllstateInsuranceCompany
Attention:PeggyCardaman,ContractManager
2775SandersRoad,E6
Northbrook,Illinois600627965
TelecopierNo.:8474020578
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<PAGE>
withacopytotheattentionofAllstate'sgeneralcounseladdressedas
follows:
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Attention:HughD.Bohlender,Counsel
2775SandersRoad,SuiteA8
Northbrook,Illinois600626127
NoticestoAcxiomshallbeaddressedasfollows:
AcxiomCorporation
Attention:KarlBabij,ContractManager
301IndustrialBoulevard
Conway,AR720332000
withacopytotheattentionofAcxiom'sgeneralcounselat:
AcxiomCorporation
Attention:CatherineHughes,GeneralCounsel
301IndustrialBoulevard
Conway,AR720332000
24.5.Amendments;Waivers
Exceptasprovidedexpresslyherein,thisAgreementmaynotbe
modified,amended,orinanywayalteredexceptbywrittendocumentduly
executedbybothofthePartieshereto.Nowaiverofanyprovisionofthis
Agreement,norofanyrightsorobligationsofanyPartyhereunder,willbe
effectiveunlessinwritingandsignedbythePartywaivingcompliance,and
suchwaiverwillbeeffectiveonlyinthespecificinstance,andforthe
specificpurpose,statedinsuchwriting.Nowaiverofbreachof,or
defaultunder,anyprovisionofthisAgreementwillbedeemedawaiverof
anyotherprovision,orofanysubsequentbreachordefaultofthesame
provision,ofthisAgreement.
24.6.LegalStatusofParties
ThisAgreementwillnotbeconstruedtoconstituteeitherPartyasa
representative,agent,employee,partner,orjointventureroftheother.
Acxiomwillbeanindependentcontractorfortheperformanceunderthis
Agreement.Acxiomwillnothavetheauthoritytoenterintoanyagreement,
nortoassumeanyliability,on
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<PAGE>
behalfofAllstate,nortobindorcommitAllstateinanymanner.Acxiom's
employeeswhoprovideservicespursuanttothisAgreementorwhoare
locatedonAllstate'spremisesshallremainemployeesofAcxiom,andAcxiom
willhavesoleresponsibilityforsuchemployeesincluding(butnotlimited
to)responsibilityforpaymentofcompensationtosuchpersonnelandfor
injurytotheminthecourseoftheiremployment.Acxiomshallbe
responsibleforallaspectsoflaborrelationswithsuchemployees
including(butnotlimitedto)theirhiring,supervision,evaluation,
discipline,firing,wages,benefits,overtimeandjobandshift
assignments,andallothertermsandconditionsoftheiremployment,and
Allstatewillhavenoresponsibilitytherefor.Acxiomshalldefend,
indemnify,andholdharmlessAllstateIndemniteesfromandagainstanyand
allclaims,liabilities,losses,costs,damages,andexpenses,including
attorney'sfees,baseduponorrelatedtoaclaimthatAcxiom'sorits
subcontractors'employeesareemployeesofAllstate.
24.7.Severability
IfanyprovisionofthisAgreementisdeterminedtobeinvalidor
unenforceable,thatprovisionshallbedeemedstrickenandtheremainderof
theAgreementwillcontinueinfullforceandeffectinsofarasitremains
aworkableinstrumenttoaccomplishtheintentandpurposesoftheParties;
thePartiesshallreplacetheseveredprovisionwiththeprovisionthat
willcomeclosesttoreflectingtheintentionofthePartiesunderlyingthe
severedprovisionbutthatwillbevalid,legal,andenforceable.
24.8.Counterparts
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24.8.Counterparts
ThisAgreementmaybeexecutedinduplicatecounterparts.Eachsuch
counterpartshallbeanoriginalandbothtogethershallconstitutebutone
andthesamedocument.ThisAgreementshallnotbedeemedexecutedunless
noruntilatleastonecounterpartbearsthesignaturesofbothparties'
designatedsignatories.
24.9.GoverningLaw
ThisAgreementandtheperformanceofthePartieshereundershallbe
governedandconstruedinaccordancewiththesubstantivelawsoftheState
ofIllinois.Allactionsorproceedingsarisingoutof,orrelatedto,
thisAgreementshallbebroughtonlyinanappropriatefederalorstate
courtinCookCountyIllinoisandthePartiesherebyconsenttothe
jurisdictionofsuchcourtsoverthemselvesandthesubjectmatterofsuch
actionsorproceedings.
24.10.NoThirdPartyBeneficiaries
ThisAgreementisanagreementbetweentheParties,andconfersno
rightsuponanyoftheParties'employees,agents,orcontractorsorupon
anyotherperson,partnership,orentity.
47
<PAGE>
24.11.Expenses
EachPartyshallpayallexpensespaidorincurredbyitin
connectionwiththeplanning,negotiation,andconsummationofthis
Agreement.
ThedulyauthorizedrepresentativesofthePartieshaveexecutedthis
AgreementasoftheEffectiveDate.
<TABLE>
<S><C>
ALLSTATEINSURANCECOMPANYACXIOMCORPORATION
By:______________________________________By:___________________________________
GeorgeE.RuebensonName:PaulL.Zaffaroni
VicePresident,ProcurementGovernanceName::AcxiomServicesDivisionLeader
</TABLE>
48
<PAGE>
ACXIOMRMTOOLS,INC.
BY:_______________________________
Name:PaulL.Zaffaroni
Title:VicePresident
49
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