EX-10.56 2 a2209068zex-10_56.htm EX-10.56

Exhibit 10.56

 

EXECUTION VERSION

 

SIXTH AMENDMENT

 

This Sixth Amendment (the “Sixth Amendment”) amends that certain First Amended and Restated Master Services Agreement and the related First Amended and Restated Transaction Document No. 1, both dated November 1, 2010 and subsequently amended, by and between ServiceMaster Consumer Services Limited Partnership and International Business Machines Corporation.

 

1.                                      Defined Terms

 

Unless otherwise defined herein, capitalized terms continue to have the meanings set forth in the Master Agreement or Transaction Document No. 1, as applicable.

 

2.                                      Effective Date

 

This amendment shall be effective as of the last date executed by the Parties as shown below.  Except as expressly modified below, the terms and conditions of both the First Amended and Restated Master Services Agreement and its First Amended and Restated Transaction Document No. 1, as subsequently amended, remain in full force and effect.

 

3.                                      Amendment

 

As an express deviation from the Master Agreement in accordance with Sections 1.2(d) and 17.2 of the Master Agreement, the Parties hereby agree to amend the Master Agreement and Transaction Document No. 1 as follows:

 

(a)                               The first sentence of Section 2.2 of the Master Agreement is hereby deleted in its entirety and shall be replaced with the following sentence:

 

“Customer may request and Service Provider shall provide the Termination Assistance Services in accordance with Section 12.4 for up to thirty-six (36) months for the Application Development and Maintenance Services described in Part E of Schedule B-1 to Transaction Document No. 1 and in Schedule B to Transaction Document No. 2 and for up to twenty-four (24) months for all other Services (the “Termination Assistance Period”), upon Customer’s written notice.”

 

(b)                               The second sentence of Section 9.1 of the Master Agreement is hereby deleted in its entirety and shall be replaced with the following sentence:

 

“Customer shall have the right to retain Third Party vendors to perform any service, function, responsibility, activity or task whether or not it is within the scope of the Services or would constitute an Additional Service or New Service, or to perform any such services, functions, responsibilities or tasks (whether all or a part of the Services or the New Services) internally.”

 

(c)                                Section 12.1(e) of the Master Agreement is hereby deleted in its entirety and shall be replaced with the following:

 


 

“For convenience with respect to any part of the Services upon sixty (60) days written notice of the effective date of such termination, by Customer to Service Provider;”

 

(d)                               The last paragraph of Section 12.1 of the Master Agreement, which is located after Section 12.1(l), is hereby deleted in its entirety and shall be replaced with the following:

 

“In the event of any termination, Customer’s notice to Service Provider shall specify a termination date no less than sixty (60) days after the date of the notice, and, upon the cessation of the Services, the Charges for the portion of the Services so terminated shall be removed from the “Charges” Schedule to the Transaction Document or adjusted in accordance with the Sixth Amendment and any other terms shall be equitably adjusted to reflect the termination of such portion of the Services.”

 

(e)                                Section 12.3(a) of the Master Agreement is hereby deleted in its entirety and shall be replaced with the following:

 

“In the event of a termination of Transaction Document No. 2 pursuant to Sections 12.1(e) or 12.2, Customer shall pay Service Provider the applicable amounts, if any, specified in the “Termination for Convenience” Schedule to Transaction Document No. 2.”

 

(f)                                 Section 12.5(c) of the Master Agreement is hereby deleted in its entirety and shall be replaced with the following:

 

“Any time after January 1, 2012, the Customer Group or its designee shall have the right to make offers of employment to any or all Service Provider employees performing Services hereunder or under such Transaction Document.  With the prior consent of each Service Provider employee (each of whom Service Provider will notify of Customer’s interest) and subject to the agreement of Service Provider employee(s), Service Provider agrees to promptly supply Customer with the names of such employees when requested by Customer for the purpose of exercising its rights under this Section 12.5, at no charge.  Subject to applicable Law, Customer’s rights under this Section 12.5 will take precedence over any Service Provider/employee employment contract or covenant that may otherwise limit an employee’s right to accept employment with the Customer Group.”

 

(g)                                The definitions of the terms in Sections A.54, A.95, A.166, A.176, and A.184 of Schedule A to Transaction Document No. 1 are hereby deleted in their entirety and replaced with the following:

 

“equals zero.”

 

(h)                                Section 2.4(a) of Schedule E-1 to Transaction Document No. 1 is hereby deleted in its entirety and shall be replaced with the following:

 

2


 

“(i)                                As of the Effective Date, the Resource Units, Resource Baselines, Dead Bands, ARC/RRC Rates and ARC/RRC Measurement Periods for each of the Towers are as set forth in Schedules E-3 and E-7, as applicable.  The Resource Baselines are monthly amounts for Resource Units that are measured on a monthly basis, unless otherwise agreed.

 

(ii)                                   Beginning on February 1, 2012, Customer may elect to eliminate its consumption of the Services associated with any Resource Unit at any time; provided, that Customer shall provide Service Provider at least 60 days advance written notice of its intention to do so, which notice shall include Customer’s expected transition schedule for the Services and any Additional Services required of IBM.  In such case: (A) on an individual Resource Unit basis, once Customer’s actual consumption of a Resource Unit is equal to or less than the amount specified in Attachment 1 to the Sixth Amendment in the column headed “50% of Base Volume” for such Resource Unit as of February 1, 2012, then in the following month, the respective Resource Baseline and Base Charge shall each automatically be reduced to the amounts specified in the columns headed “50% of Base Volume” and “50% of Base Fee” for such Resource Unit, respectively and (B) once Customer’s actual Resource Unit consumption for all Resource Units associated with a Tower (as identified in Attachment 1 to the Sixth Amendment) is zero, the remaining Base Charges and Resource Baselines for the Resource Units associated with such Tower shall each automatically be reduced to zero and the Base Charge for “Development/Application Maintenance/PMO Core Team” shall automatically be increased by an amount equal to the amounts specified in Attachment 1 to the Sixth Amendment in the column headed “Fixed Fee Floor” for each such Resource Unit in the applicable Tower.  The Parties will document the transition and elimination of such Services pursuant to appropriate Change Orders.

 

(iii)                               Beginning on February 1, 2012, Customer may elect to eliminate its consumption of the Application Maintenance Services and the Application Development Services at any time.  In such a case, Customer shall update its rolling 90-day forecasts required in accordance with Schedule E-7 on a monthly basis to reflect Customer’s reduced consumption plan, then in the following month, the respective Resource Baseline shall each automatically be reduced to the amounts specified in such reduced consumption forecast and the Base Charge shall be calculated using such reduced Resource Baseline.

 

(iv)                                 Once Customer’s actual consumption of the “Development/Application Maintenance/PMO Core Team” is equal to or less than 10,000 hours, then in the following month, the Base Charge for “Development/Application Maintenance/PMO Core Team” shall automatically be reduced by $35,306.  Once Customer’s actual consumption of the “Development/Application Maintenance/PMO Core

 

3


 

Team” is equal to zero, the Base Charge for “Development/Application Maintenance/PMO Core Team” shall automatically be reduced to zero.”

 

(i)                                   Sections 3.1, 3.2, and 3.3 of Schedule E-1 to Transaction Document No. 1 are hereby deleted in their entirety.

 

(j)                                  Section 8 of Schedule E-1 to Transaction Document No. 1 is hereby deleted in its entirety and shall be replaced with the following:

 

“(a)                             In the event Customer gives Service Provider actual written notice of termination of the TruGreen LawnCare Branch LPAR Rapid Recovery Services effective prior to December 31, 2015, then Customer shall pay the fee set forth in Attachment 2 to the Sixth Amendment for the contract month corresponding with the effectiveness of such termination, unless otherwise agreed by the Parties.

 

(b)                                    In the event Customer gives Service Provider actual written notice of termination for convenience of the ADM Services effective prior to September 30, 2013, then Customer shall pay the fee set forth in Attachment 3 to the Sixth Amendment for the contract month corresponding with the effectiveness of such termination.  Notwithstanding the previous sentence, neither reductions in the ADM Services consumed by Customer that occur as result of the “bid out” process referred to in Schedule F-5-7 nor Customer’s reduction of its ADM Services consumption to zero shall constitute a termination of the ADM Services and no such fee shall be payable in either circumstance.”

 

(k)                               Schedule E-9 to Transaction Document No. 1 is hereby deleted in its entirety, along with references to such schedule in the tables of schedules contained in Transaction Document No. 1 and Exhibit 2 to the Master Agreement.

 

(l)                                   Section 2.6(a) of Schedule N to Transaction Document No. 1 is hereby deleted in its entirety and shall be replaced with the following:

 

“Deliver to Customer or a Successor Service Provider, as in existence as of Customer’s request: (i) the current Policies and Process Interface Manuals,(ii) all applicable documentation regarding processes and procedures used to provide the Services, including all passwords and access codes, and (iii) the original knowledge transfer documentation provided by Customer to Service Provider in 2009;”

 

[Signatures follow on the next page.]

 

4


 

IN WITNESS WHEREOF, the Parties have caused this Sixth Amendment to be duly executed by their authorized representatives as of the dates set forth below.

 

ServiceMaster Consumer Services Limited Partnership

 

By ServiceMaster Consumer Services, Inc., its General Partner

 

International Business Machines Corporation

 

 

 

 

 

 

By:

/s/ Linda Goodspeed

 

By:

/s/ Eusebio Fomoso

Authorized signature

 

Authorized signature

 

 

 

 

 

 

Name: Linda Goodspeed

 

Name: Eusebio Formoso

 

 

 

Title: Senior Vice President, Chief Information Officer

 

Title: Project Executive

 

 

 

Date: March 27, 2012

 

Date: March 27, 20112

 

5

 

 

SIXTH AMENDMENT
ATTACHMENT 1

 

This is Attachment 1 to the Sixth Amendment dated March 27, 2012 by and between ServiceMaster Consumer Services Limited Partnership and International Business Machines Corporation. Unless otherwise defined herein, capitalized terms have the meanings set forth in the Master Agreement or Transaction Document No. 1, as applicable.

 

Tower

 

Area

 

RU
Based

 

RU Name

 

Base Fee

 

Base
Volume

 

ARC / RRC
Rate

 

Fixed Fee

 

50% of
Base
Volume

 

50% of
Base Fee

 

Fixed Fee
Floor

 

Server Support

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unix

 

Y

 

Unix

 

$

17,035

 

49

 

$

296

 

$

2,555

 

25

 

$

8,518

 

$

1,278

 

 

 

Intel/AD

 

Y

 

Intel

 

$

283,668

 

901

 

$

298

 

$

15,333

 

451

 

$

141,834

 

$

7,667

 

 

 

AS400

 

Y

 

AS400

 

$

90,986

 

231

 

$

335

 

$

13,648

 

116

 

$

45,493

 

$

6,824

 

 

 

DBA

 

Y

 

Database Instances

 

$

26,497

 

96

 

$

193

 

$

7,949

 

48

 

$

13,248

 

$

3,974

 

 

 

Citrix Support

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Storage

 

Y

 

Allocated TBs

 

$

91,380

 

305

 

$

254

 

$

13,707

 

153

 

$

45,690

 

$

6,853

 

 

 

Middleware

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CNC/JDE

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Groupware (SCCM,SCOM,etc)

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Email

 

Y

 

Email IDs

 

$

21,403

 

14,223

 

$

1

 

$

2,140

 

7,112

 

$

10,701

 

$

1,070

 

 

 

Blackberry

 

Y

 

Blackberry IDs

 

$

3,754

 

915

 

$

4

 

$

375

 

458

 

$

1,877

 

$

188

 

Data Center Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Server Operations & Backups

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monitoring Software (Ops)

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Job Monitoring (Production Control)

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End User Support

 

 

 

$

(25,893

)

N/A

 

N/A

 

$

(25,893

)

 

 

 

 

$

(34,940

)

 

 

Service Desk

 

Y

 

PCs & Thin Clients

 

$

275,480

 

18,630

 

$

13

 

$

27,548

 

9,315

 

$

137,740

 

$

13,774

 

 

 

Desk Side Support (PCs,Thins, MFPs)

 

Y

 

PCs,Thin Clients, & MFPs

 

$

171,867

 

23,148

 

Various

 

$

22,606

 

11,574

 

$

85,933

 

$

11,303

 

 

 

Remote Support (CTS)

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAC Coordination

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMACs

 

Y

 

IMACs

 

$

30,910

 

300

 

$

88

 

$

4,637

 

150

 

$

15,455

 

$

2,318

 

Cross Functional / Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Problem & Change Mgt

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Mgt

 

Y

 

Asset Management

 

$

338

 

N/A

 

N/A

 

$

338

 

N/A

 

$

169

 

$

169

 

 

 

Security

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disaster Recovery

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Order Procurement

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remedy Support

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SLA reporting

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance & Capacity

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ID Administration

 

N

 

ID Administration

 

$

4,598

 

N/A

 

N/A

 

$

4,598

 

N/A

 

$

2,299

 

$

2,299

 

 

 

Project Mgt

 

Y

 

Infrastructure Project Hours

 

$

141,287

 

1,494

 

$

85

 

$

14,939

 

$

747

 

$

70,644

 

$

7,470

 

Network & Telecom

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAC’s

 

Y

 

Hard IMACs

 

$

—

 

—

 

N/A

 

 

 

—

 

$

—

 

$

—

 

 

 

Network & Telecom Operations

 

Y

 

Routers, Switches, WAP

 

$

69,511

 

801

 

Various

 

$

18,253

 

400

 

$

34,755

 

$

9,127

 

 

 

Network Engineering

 

Y

 

Routers, Switches, WAP

 

$

69,511

 

801

 

Various

 

$

18,253

 

 

 

$

34,755

 

$

9,127

 

 

 

Firewalls,VPN, AP’s & DNS

 

Y

 

WAN Devices

 

$

5,265

 

53

 

$

77

 

$

1,178

 

27

 

$

2,632

 

$

589

 

 

 

Telecommunications Administration

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premise Voice Systems (Cisco & Avaya)

 

Y

 

ACD Agents, Voicemail Boxes, PBX Ports, IP Telephony Ports

 

$

143,575

 

25,701

 

Various

 

$

43,042

 

12,851

 

$

71,787

 

$

21,521

 

 

 

Telecom Expense Management (TEM)

 

N

 

Telecom Expense Management

 

$

53,970

 

N/A

 

N/A

 

$

53,970

 

N/A

 

N/A

 

N/A

 

 

 

Audio and Video Conferencing

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Circuit and Transport Technology

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branch Support / Dispatch

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

1,475,140

 

 

 

 

 

$

239,177

 

 

 

$

723,531

 

$

70,611

 

 

Subtotals by Tower

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Server Support

 

$

534,722

 

$

55,708

 

$

267,361

 

$

27,854

 

Data Center Operations

 

$

—

 

$

—

 

$

—

 

$

—

 

End User Support

 

$

452,364

 

$

28,897

 

$

239,128

 

$

(7,544

)

Cross Functional

 

$

146,223

 

$

19,875

 

$

73,112

 

$

9,938

 

Network & Telecom

 

$

341,831

 

$

134,697

 

$

143,931

 

$

(40,363

)

Totals

 

$

1,475,140

 

$

239,177

 

$

723,531

 

$

70,611

 

 

6

 

 

SIXTH AMENDMENT
ATTACHMENT 2 - DR TERMINATION FEE

 

This is Attachment 2 to the Sixth Amendment dated March 27, 2012 by and between ServiceMaster Consumer Services Limited Partnership and International Business Machines Corporation. Unless otherwise defined herein, capitalized terms have the meanings set forth in the Master Agreement or Transaction Document No. 1, as applicable.

 

 

 

 

 

TruGreen LawnCare
Branch LPAR Rapid
Recovery
Termination Fee

 

 

 

 

 

TruGreen LawnCare
Branch LPAR Rapid
Recovery
Termination Fee

 

Jan-12

 

Month 37

 

$

 767,621

 

Jan-14

 

Month 61

 

$

 389,363

 

Feb-12

 

Month 38

 

$

 752,042

 

Feb-14

 

Month 62

 

$

 373,385

 

Mar-12

 

Month 39

 

$

 736,448

 

Mar-14

 

Month 63

 

$

 357,387

 

Apr-12

 

Month 40

 

$

 720,840

 

Apr-14

 

Month 64

 

$

 341,369

 

May-12

 

Month 41

 

$

 705,218

 

May-14

 

Month 65

 

$

 325,331

 

Jun-12

 

Month 42

 

$

 689,580

 

Jun-14

 

Month 66

 

$

 309,273

 

Jul-12

 

Month 43

 

$

 673,927

 

Jul-14

 

Month 67

 

$

 293,195

 

Aug-12

 

Month 44

 

$

 658,259

 

Aug-14

 

Month 68

 

$

 277,096

 

Sep-12

 

Month 45

 

$

 642,575

 

Sep-14

 

Month 69

 

$

 260,977

 

Oct-12

 

Month 46

 

$

 626,876

 

Oct-14

 

Month 70

 

$

 244,836

 

Nov-12

 

Month 47

 

$

 611,161

 

Nov-14

 

Month 71

 

$

 228,674

 

Dec-12

 

Month 48

 

$

 595,429

 

Dec-14

 

Month 72

 

$

 212,490

 

Jan-13

 

Month 49

 

$

 579,682

 

Jan-15

 

Month 73

 

$

 196,284

 

Feb-13

 

Month 50

 

$

 563,918

 

Feb-15

 

Month 74

 

$

 180,056

 

Mar-13

 

Month 51

 

$

 548,137

 

Mar-15

 

Month 75

 

$

 163,806

 

Apr-13

 

Month 52

 

$

 532,339

 

Apr-15

 

Month 76

 

$

 147,532

 

May-13

 

Month 53

 

$

 516,524

 

May-15

 

Month 77

 

$

 131,236

 

Jun-13

 

Month 54

 

$

 500,692

 

Jun-15

 

Month 78

 

$

 114,916

 

Jul-13

 

Month 55

 

$

 484,842

 

Jul-15

 

Month 79

 

$

 98,573

 

Aug-13

 

Month 56

 

$

 468,975

 

Aug-15

 

Month 80

 

$

 82,206

 

Sep-13

 

Month 57

 

$

 453,090

 

Sep-15

 

Month 81

 

$

 65,814

 

Oct-13

 

Month 58

 

$

 437,186

 

Oct-15

 

Month 82

 

$

 49,398

 

Nov-13

 

Month 59

 

$

 421,264

 

Nov-15

 

Month 83

 

$

 32,958

 

Dec-13

 

Month 60

 

$

 405,323

 

Dec-15

 

Month 84

 

$

 16,491

 

 

7


 

SIXTH AMENDMENT

ATTACHMENT 3 - ADM TERMINATION FEE

 

This is Attachment 3 to the Sixth Amendment dated March 27, 2012 by and between ServiceMaster Consumer Services Limited Partnership and International Business Machines Corporation. Unless otherwise defined herein, capitalized terms have the meanings set forth in the Master Agreement or Transaction Document No. 1, as applicable.

 

 

 

 

 

ADM Termination Fee

 

Mar-12

 

Month 39

 

$

1,196,690

 

Apr-12

 

Month 40

 

$

1,176,029

 

May-12

 

Month 41

 

$

1,155,368

 

Jun-12

 

Month 42

 

$

1,134,707

 

Jul-12

 

Month 43

 

$

1,114,046

 

Aug-12

 

Month 44

 

$

1,093,385

 

Sep-12

 

Month 45

 

$

1,072,724

 

Oct-12

 

Month 46

 

$

1,052,063

 

Nov-12

 

Month 47

 

$

1,031,402

 

Dec-12

 

Month 48

 

$

1,010,741

 

Jan-13

 

Month 49

 

$

990,081

 

Feb-13

 

Month 50

 

$

966,321

 

Mar-13

 

Month 51

 

$

942,560

 

Apr-13

 

Month 52

 

$

918,800

 

May-13

 

Month 53

 

$

895,040

 

Jun-13

 

Month 54

 

$

871,280

 

Jul-13

 

Month 55

 

$

847,520

 

Aug-13

 

Month 56

 

$

823,760

 

Sep-13

 

Month 57

 

$

800,000

 

thereafter

 

 

 

$

0.0

 

 

8