EX-10.1 2 d714139dex101.htm EX-10.1 EX-10.1

Exhibit 10.1

TRANSITION SERVICES AGREEMENT

This TRANSITION SERVICES AGREEMENT (this “Agreement”) is entered into as of October     , 2014 between Kimberly-Clark Corporation, a Delaware corporation (“Kimberly-Clark”), and Halyard Health, Inc., a Delaware corporation (“Halyard”). Kimberly-Clark and Halyard are sometimes hereinafter collectively referred to as the “Parties” and each individually as a “Party.”

WHEREAS, Kimberly-Clark, acting through its direct and indirect Subsidiaries, owns and conducts the Retained Business and the Healthcare Business;

WHEREAS, the Board of Directors of Kimberly-Clark has determined that it would be advisable and in the best interests of Kimberly-Clark and its stockholders for Kimberly-Clark to distribute on a pro rata basis to the holders of Kimberly-Clark’s common stock all of the outstanding shares of Halyard common stock owned by Kimberly-Clark (the “Distribution”);

WHEREAS, Kimberly-Clark and Halyard have entered into a Distribution Agreement, dated as of the date hereof (the “Distribution Agreement”), in order to carry out, effect and consummate the Distribution and related matters;

WHEREAS, in order to effect an orderly separation and transition under the Distribution Agreement, the Parties have agreed that (a) Kimberly-Clark will provide or cause to be provided to Halyard (and/or its Affiliates) certain services and other assistance on a transitional basis during the transition period and (b) Halyard will provide or cause to be provided to Kimberly-Clark (and/or its Affiliates) certain services and other assistance on a transitional basis during the transition period, in each case in accordance with the terms and subject to the conditions of this Agreement.

NOW, THEREFORE, in consideration of the premises and the agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby, agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions. Capitalized terms used but not otherwise defined elsewhere in this Agreement shall have the respective meanings given to such terms in the Distribution Agreement. The following terms shall have the meaning ascribed thereto for purposes of this Agreement, including all Schedules hereto:

Business Day” means any day, other than a Saturday, Sunday or a day on which banking institutions located in New York, New York shall be authorized or required by any Government Requirement to close.

Damages” means any and all liability, demands, claims, actions or causes of action, assessments, losses, damages, fines, penalties, costs and expenses (including reasonable attorneys’ fees and expenses).


Governmental Requirement” means at any time (i) any law, statute, code, ordinance, order, rule, regulation, judgment, decree, injunction, writ, edict, award, authorization or other requirement of any Governmental Authority in effect at that time or (ii) any obligation included in any certificate, certification, franchise, permit or license issued by any Governmental Authority or resulting from binding arbitration, including any requirement under common law.

Gross Negligence” means a negligent act or negligent failure to act (whether sole, joint or concurrent) by any person, which act or failure to act is more fundamental than a failure to exercise proper skill and/or care and would reasonably be perceived as entailing an extreme degree of risk of injury to a Person or physical loss of or damage to property (considering the probability and magnitude of the potential injury, loss or damage), coupled with the person’s actual awareness of and indifference to such extreme risk.

Halyard Group” means Halyard and each direct or indirect Subsidiary of Halyard (other than Kimberly-Clark and any Subsidiary of Kimberly-Clark).

Kimberly-Clark Group” means Kimberly-Clark and each direct or indirect Subsidiary of Kimberly-Clark (other than Halyard and any Subsidiary of Halyard).

Regardless of Cause” means, whether or not any Damages are asserted to have been caused or arisen by virtue of tort (including negligence and gross negligence), breach of statutory duty, breach of common law duty (including fiduciary duties), breach of contract (including breach of condition) or quasi-contract, strict liability, misrepresentation, breach of any laws, regulations, rules or orders of any Governmental Requirements or otherwise, on the part of the Party or other Person seeking indemnity (or exclusion or limitation of liability).

Service Provider” means the Party (or its Subsidiary or Affiliate) providing a Service under this Agreement.

Service Receiver” means the Party (or its Subsidiary or Affiliate) to whom a Service is being provided under this Agreement.

Service Receiver Group” means the applicable Halyard Group or Kimberly-Clark Group receiving the Services from the Service Provider.

Willful Misconduct” any intentional wrongful act or intentional wrongful failure to act (whether sole, joint or concurrent) with actual knowledge that such act (or failure to act) is wrongful and with the intention to cause injury to a person, physical loss of or damage to property, breach of a contract or quasi-contract, or breach of any Government Requirement.

ARTICLE II

SERVICES

Section 2.1 Services. Subject to the terms and conditions of this Agreement, (a) Kimberly-Clark, acting through its own or procured through other members of the Kimberly-Clark Group and their respective employees, agents, contractors or independent third parties,

 

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agrees to provide or cause to be provided to Halyard and the other members of the Halyard Group (solely with respect to that portion of the Halyard Business arising out of the Healthcare Business and the Included Non-Woven Business) the services set forth in Schedules A-[    ] to A-[    ] hereto and any additional services provided to Halyard or the other members of the Halyard Group pursuant to Section 2.3 of this Agreement (the “Kimberly-Clark Services”), and (b) Halyard, acting through its own or procured through other members of the Halyard Group and their respective employees, agents, contractors or independent third parties, agrees to provide or cause to be provided to Kimberly-Clark and the other members of the Kimberly-Clark Group (solely with respect to the Retained Business) the services set forth in Schedules B-[    ] to B-[    ] hereto and any additional services provided to Kimberly-Clark or the other members of the Kimberly-Clark Group pursuant to Section 2.3 of this Agreement (the “Halyard Services” and, collectively with the Kimberly-Clark Services, the “Services”). At all times during the performance of the Services, all Persons performing such Services (including agents, temporary employees, independent third parties and consultants of the Service Provider, collectively, the “Service Provider Group”) shall be construed as being independent from the Service Receiver Group, and no such Person shall be considered or deemed to be an employee of any member of the Service Receiver Group nor entitled to any employee benefits of the Service Receiver as a result of this Agreement.

The Service Receiver acknowledges and agrees that, except as may be expressly set forth herein as a Service (including additional Services to be provided pursuant to Section 2.3 below), no member of the Service Provider Group shall be obligated to provide, or cause to be provided, any service to any member of the Service Receiver Group.

Section 2.2 Service Coordinators. Each of Kimberly-Clark and Halyard will nominate a representative to act as the primary contact with respect to the provision of the Services as contemplated by this Agreement (the “Service Coordinators”). The initial Service Coordinators shall be Gene Bernier for Kimberly-Clark and Warren Machan for Halyard. Unless Kimberly-Clark and Halyard otherwise agree, Kimberly-Clark and Halyard agree that all notices and communications relating to this Agreement, other than those day-to-day communications and billings relating to the actual provision of the Services, shall be directed to the Service Coordinators in accordance with Section 11.10 hereof. The Service Coordinators shall meet as expeditiously as possible to resolve any dispute hereunder, and any dispute that is not resolved by the Service Coordinators within thirty (30) calendar days after their first meeting with respect to such dispute shall be resolved in accordance with the dispute resolution procedures set forth in Section 11.3. Each of Kimberly-Clark and Halyard may treat an act of a Service Coordinator of the other Party which is consistent with the provisions of this Agreement as being authorized by such other Party without inquiring behind such act or ascertaining whether such Service Coordinator had authority to so act; provided, however, that no such Service Coordinator shall have authority to amend this Agreement. Unless otherwise provided herein, Kimberly-Clark and Halyard shall advise each other promptly (in any case no more than three Business Days) in writing of any change in their respective Service Coordinators, setting forth the name of the replacement, and stating that the replacement Service Coordinator is authorized to act for such Party in accordance with this Section 2.2.

 

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Section 2.3 Additional Services. During the period (the “Transition Period”) from the Distribution Date until the second anniversary of the Distribution Date, Kimberly-Clark and Halyard may, each acting in its sole discretion, mutually agree that each Party, in its capacity as a Service Provider, will provide additional Services to the other Party, in its capacity as a Service Receiver. Upon the mutual written agreement as to the nature, cost, duration and scope of such additional Services, the Parties shall supplement in writing the Schedules hereto to include such additional Services.

Notwithstanding anything to the contrary herein or in any current or supplemental Schedule hereto, no additional Services shall extend or be provided past the end of the Transition Period.

Section 2.4 Third-Party Services. Each Party, in its capacity as a Service Provider, shall have the right, whenever it deems necessary or advisable, to hire third-party subcontractors or acquire rights from third parties to provide all or part of any applicable Service hereunder; provided, however, that prior to any such hire or acquisition of rights, the Service Provider shall provide the Service Receiver with written notice thereof, which notice shall include the identity of such third party, and to permit the Service Receiver with an opportunity to indicate any concerns therewith (it being understood that the Service Receiver shall not have the right of approval). The Service Provider will provide to the Service Receiver all reasonably requested information regarding such third-party subcontractors.

Section 2.5 Standard of Performance. The Services to be provided hereunder shall be performed with the same general degree of care as the Service Provider and its Affiliates performs such services within the Service Provider organization. It is understood and agreed that the employees of the Service Provider and the other members of the Service Provider Group performing the Services are not professional providers to third parties of the types of services included in the Services and that some or all of the Service Provider Group employees performing Services may have other responsibilities and may not be dedicated full-time to performing Services hereunder. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 2.5, NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED (INCLUDING THE WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONFORMITY TO ANY REPRESENTATION, SPECIFICATION OR DESCRIPTION), ARE MADE BY THE APPLICABLE SERVICE PROVIDER OR ANY MEMBER OF THE APPLICABLE SERVICE PROVIDER GROUP WITH RESPECT TO THE SERVICES UNDER THIS AGREEMENT AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ALL SUCH REPRESENTATIONS OR WARRANTIES ARE HEREBY WAIVED AND DISCLAIMED, REGARDLESS OF CAUSE, BY THE APPLICABLE SERVICE PROVIDER.

Section 2.6 Service Boundaries and Scope. Except as otherwise provided in this Agreement or a Schedule for a specific Service: (a) the Service Provider shall be required to provide, or cause to be provided, the Services only to the extent and only at the locations such Services are being provided by any member of the Service Provider Group for the applicable Business immediately prior to the Distribution Date; and (b) the Services shall be available only for purposes of conducting the applicable Business substantially in the manner it was conducted immediately prior to the Distribution Date; provided, however, that the Service Receiver shall be entitled to request changes to the Services locations and/or purposes, and the Service Provider shall consider all such requests in good faith, it being understood that the Service Provider shall

 

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be permitted to reject any such request for any reason if such change would be reasonably likely to increase the volume of Services provided hereunder by more than 2%. Except as otherwise provided in this Agreement or a Schedule for a specific Service, in providing, or causing to be provided, the Services, the Service Provider shall not be obligated to: (i) maintain the employment of any specific employee or hire additional employees or third-party service providers; (ii) purchase, lease or license any additional equipment (including computer equipment, furniture, furnishings, fixtures, machinery, vehicles, tools and other tangible personal property), software or other assets, rights or properties; (iii) make modifications to its existing systems or software; (iv) provide any member of the Service Receiver Group with access to any systems or software; (v) provide or cause to be provided any training, licensing or similar services to any person; (vi) provide any marketing, promotional, bid inquiry or similar services; (vii) provide any transportation services; or (viii) pay any costs related to the transfer or conversion of data of any member of the Service Receiver Group. Each Party in its capacity as a Service Receiver acknowledges (on its own behalf and on behalf of the other members of its respective Group) that the employees of the Service Provider or any other members of the Service Provider Group who may be assisting in the provision of Services hereunder are or may be at-will employees and, in any event, may terminate or be terminated from employment with the Service Provider or any of the other members of the Service Provider Group providing Services hereunder at any time for any reason. For the avoidance of doubt, the Services do not include any services required for or as the result of any business acquisitions, divestitures, start-ups or terminations by the Service Receiver or any other member of the Service Receiver Group, or any similar transactions, in each case to the extent consummated after the Distribution Date.

Section 2.7 Kimberly-Clark Documents and Other Information.

(a) Except for software licensed from third parties that are not Affiliates of Kimberly-Clark, all software used in or in connection with any part of the Retained Business (the “Kimberly-Clark Software”), is proprietary to Kimberly-Clark or its Affiliates and, to the extent it is necessary to license or sublicense such software to Halyard in order for Kimberly-Clark to provide the Kimberly-Clark Services, such software is hereby licensed or sublicensed non-exclusively, royalty-free to Halyard solely for use in connection with the Halyard Business and the Included Non-Woven Business and only until the earlier of the termination of this Agreement or the time at which the Service to which such Kimberly-Clark Software relates terminates or ceases to be provided under this Agreement. Halyard agrees not to use the licensed or sublicensed Kimberly-Clark Software or related documentation (other than in connection with that portion of the Halyard Business that arose out of the Healthcare Business and the Included Non-Woven Business during the term of this Agreement) or to copy, modify, reverse engineer, reverse compile, or reverse assemble it. Irrespective of any terms to the contrary in this Agreement, any and all such licenses and sublicenses shall terminate as of the termination of this Agreement.

(b) As a result of the provision of Kimberly-Clark Services, certain employees of Halyard may receive access to computer, communications or information networks or systems of Kimberly-Clark or its Affiliates, and any related documentation (collectively, “Kimberly-Clark Systems”). Halyard shall access and use only those Kimberly-Clark Systems for which it has been granted the right to access and use. Halyard’s right to access and use is provided for the limited purpose of supporting the Services provided hereunder. Individual access to such

 

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Kimberly-Clark Systems is strictly limited to those employees of Halyard approved in advance by Kimberly-Clark. With respect to all Kimberly-Clark Systems to which any employee of Halyard has access as a result of the Services being provided, Halyard (i) shall use such Kimberly-Clark Systems internally and for their intended purpose only, shall not distribute, publish, transfer, sublicense or in any manner make such Kimberly-Clark Systems available to other organizations or persons, and shall not act as a service bureau or consultant in connection with such Kimberly-Clark Systems; (ii) shall comply with all of Kimberly-Clark’s system security policies, procedures and requirements that are provided to Halyard from time to time (“Kimberly-Clark Security Regulations”); and (iii) shall not tamper with, compromise or circumvent any security or audit measures employed by Kimberly-Clark. Halyard shall ensure that only those employees acting on its behalf who are specifically authorized to have access to Kimberly-Clark Systems gain such access and prevent unauthorized access, use, destruction, alteration or loss of information contained therein, including notifying its employees who might have access to such Kimberly-Clark Systems of the restrictions set forth in this Agreement and of the Kimberly-Clark Security Regulations.

(c) If, at any time, (i) any employee of the Halyard Group or other Person acting on its behalf seeks to circumvent, or circumvents, the Kimberly-Clark Security Regulations, (ii) any unauthorized employee of the Halyard Group or Person acting on its behalf accesses Kimberly-Clark Systems, or (iii) any employee or representative of the Halyard Group engages in activities that may lead to the unauthorized access, use, destruction, alteration or loss of data, information or software of Kimberly-Clark, Halyard shall promptly terminate any such employee’s or Person’s access to Kimberly-Clark Systems and immediately notify Kimberly-Clark. In addition, Kimberly-Clark shall have the right to deny any employee of the Halyard Group or other Person acting on the Halyard Group’s behalf access to Kimberly-Clark Systems in the event that Kimberly-Clark reasonably believes that such employee has engaged in any of the activities set forth above in this Section 2.7 or otherwise poses a security concern. Halyard shall cooperate with Kimberly-Clark in investigating any apparent unauthorized access to Kimberly-Clark Systems.

(d) Without limiting the generality of any other provision hereof, the Halyard Group shall have responsibility under this Agreement for the actions and omissions of both its employees and any other Person acting on its behalf.

(e) To the extent Halyard no longer requires access to Kimberly-Clark Systems with respect to specific software, functions, systems or services, Halyard’s access will be terminated.

Section 2.8 Halyard Documents and Other Information.

(a) Except for software licensed from third parties that are not Affiliates of Halyard, all software used in or in connection with any portion of the Halyard Business or the Included Non-Woven Business (the “Halyard Software”), is proprietary to Halyard or its Affiliates and, to the extent it is necessary to license or sublicense such software to Kimberly-Clark in order for Halyard to provide the Halyard Services, such software is hereby licensed or sublicensed non-exclusively, royalty-free to Kimberly-Clark solely for use in connection with the Kimberly-Clark Business and only until the earlier of the termination of this Agreement or the

 

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time at which the Service to which such Halyard Software relates terminates or ceases to be provided under this Agreement. Kimberly-Clark agrees not to use the licensed or sublicensed Halyard Software or related documentation (other than in connection with the Kimberly-Clark Business during the term of this Agreement) or to copy, modify, reverse engineer, reverse compile, or reverse assemble it. Irrespective of any terms to the contrary in this Agreement, any and all such licenses and sublicenses shall terminate as of the termination of this Agreement.

(b) As a result of the provision of Halyard Services, certain employees of Kimberly-Clark may receive access to computer, communications or information networks or systems of Halyard or its Affiliates, and any related documentation (collectively, “Halyard Systems”). Kimberly-Clark shall access and use only those Halyard Systems for which it has been granted the right to access and use. Kimberly-Clark’s right to access and use is provided for the limited purpose of supporting the Services provided hereunder. Individual access to such Halyard Systems is strictly limited to those employees of Kimberly-Clark approved in advance by Halyard. With respect to all Halyard Systems to which any employee of Kimberly-Clark has access as a result of the Services being provided, Kimberly-Clark (i) shall use such Halyard Systems internally and for their intended purpose only, shall not distribute, publish, transfer, sublicense or in any manner make such Halyard Systems available to other organizations or persons, and shall not act as a service bureau or consultant in connection with such Halyard Systems; (ii) shall comply with all of Halyard’s system security policies, procedures and requirements that are provided to Kimberly-Clark from time to time (“Halyard Security Regulations”); and (iii) shall not tamper with, compromise or circumvent any security or audit measures employed by Halyard. Kimberly-Clark shall ensure that only those employees acting on its behalf who are specifically authorized to have access to Halyard Systems gain such access and prevent unauthorized access, use, destruction, alteration or loss of information contained therein, including notifying its employees who might have access to such Halyard Systems of the restrictions set forth in this Agreement and of the Halyard Security Regulations.

(c) If, at any time, (i) any employee of the Kimberly-Clark Group or other Person acting on its behalf seeks to circumvent, or circumvents, the Halyard Security Regulations, (ii) any unauthorized employee of the Kimberly-Clark Group or Person acting on its behalf accesses Halyard Systems, or (iii) any employee or representative of the Kimberly-Clark Group engages in activities that may lead to the unauthorized access, use, destruction, alteration or loss of data, information or software of Halyard, Kimberly-Clark shall promptly terminate any such employee’s or Person’s access to Halyard Systems and immediately notify Halyard. In addition, Halyard shall have the right to deny any employee of the Kimberly-Clark Group or other Person acting on the Kimberly-Clark Group’s behalf access to Halyard Systems in the event that Halyard reasonably believes that such employee has engaged in any of the activities set forth above in this Section 2.8 or otherwise poses a security concern. Kimberly-Clark shall cooperate with Halyard in investigating any apparent unauthorized access to Halyard Systems.

(d) Without limiting the generality of any other provision hereof, the Kimberly-Clark Group shall have responsibility under this Agreement for the actions and omissions of both its employees and any other Person acting on its behalf.

 

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(e) To the extent Kimberly-Clark no longer requires access to Halyard Systems with respect to specific software, functions, systems or services, Kimberly-Clark’s access will be terminated.

Section 2.9 Conflict with Laws; Business Ethics. Notwithstanding anything in this Agreement to the contrary, (a) no Service Provider nor any of its Affiliates shall be required to undertake any actions that would or may place such Service Provider in violation of any Governmental Requirements and (b) each of the Parties agrees that the other Party shall not be required to take any actions that would place such Party or any other member of such Party’s Group in violation of its Business Code of Conduct, as they may be amended from time to time. Each Party shall promptly notify the other Party of any Service or action relating to a Service that cannot be performed without violating the Party’s Business Code of Conduct. The Party who gives such notice shall use commercially reasonable efforts to provide such Services or take such actions in such a way and to such an extent as will not cause it to violate its Business Code of Conduct.

Section 2.10 Local Implementing Agreements; Access. The Parties recognize and agree that there may be a need to document the Services provided hereunder in various countries from time to time. Consequently, the Parties shall enter into, or cause their respective Subsidiaries to enter into, local implementing agreements (“Local Agreements”) for Services to be provided hereunder in such countries or geographical regions as either Kimberly-Clark or Halyard may reasonably request from time to time; provided, however, that the execution or performance of any such Local Agreement shall in no way alter or modify any term or condition hereof nor the effect thereof. Without limiting the generality of the foregoing, should there be any conflict between any term or condition of a Local Agreement and this Agreement, the terms and conditions of this Agreement shall prevail.

During the term of this Agreement and for so long as any Services are being provided, the Kimberly-Clark Group will provide the Halyard Group and its authorized representatives such access to Kimberly-Clark and any other member of the Kimberly-Clark Group and their respective employees, representatives, facilities, premises and other equipment and books and records (including electronic data) as Halyard and its representatives may reasonably require in order to perform the Services or fulfill their respective obligations hereunder. During the term of this Agreement and for so long as any Services are being provided, the Halyard Group will provide the Kimberly-Clark Group and its authorized representatives such access to Halyard and any other member of the Halyard Group and their respective employees, representatives, facilities, premises and other equipment and books and records (including electronic data) as Kimberly-Clark and its representatives may reasonably require in order to perform the Services or fulfill their respective obligations hereunder.

ARTICLE III

CHARGES

Section 3.1 Charges. Each Service will be provided at the price indicated in the corresponding Schedule hereto.

 

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ARTICLE IV

PAYMENT

Section 4.1 Payment. Charges for Services shall be invoiced monthly or at such other times as provided in the applicable Schedules hereunder in one or more statements (the “Monthly Statements”) prepared by the applicable Service Provider or one or more of its Affiliates and in the form set forth in Exhibit A hereto (with Kimberly-Clark as Service Provider) or Exhibit B hereto (with Halyard as Service Provider). The recipient of such invoice shall make the corresponding payment no later than sixty (60) calendar days after receipt of the Monthly Statement. Each Monthly Statement shall be directed to the applicable Service Coordinator or such other person designated in writing from time to time by such Service Coordinator. The Monthly Statement shall set forth in reasonable detail, for the period covered by such Monthly Statement: (i) the Services rendered and (ii) the basis for the calculation of the charges as set forth in Section 3.1. In the event there is any dispute with respect to a Monthly Statement, the Service Receiver shall make the payment for all non-disputed portions in accordance herewith. In the event it is determined that the Service Receiver is entitled to a refund of amounts actually paid by the Service Receiver hereunder, the Service Provider or its Affiliate (as applicable) shall pay the Service Receiver such overpaid amount.

The Service Receiver shall be responsible for all transfer taxes, excises, fees or other charges (including any sales, use, goods and services, value added or similar taxes) imposed or assessed on the Service Provider or its Affiliates as a result of the provision of Services under this Agreement. The Service Receiver shall be entitled to deduct and withhold taxes required by any Governmental Requirements to be withheld on payments made pursuant to this Agreement. To the extent any amounts are so withheld, the Service Receiver shall (i) pay such deducted and withheld amount to the proper Governmental Authority, and (ii) promptly provide to the Service Provider evidence of such payment to such Governmental Authority.

ARTICLE V

TERM

Section 5.1 Term. The term of this Agreement shall commence on the Distribution Date and shall continue in force until the termination of all Services in accordance with the duration of such Services set forth in the Schedules hereto or as otherwise set forth herein, but in no event beyond the October     , 2016. Except as otherwise provided in a Schedule with respect to a specific Service, all Services shall terminate at the end of the Transition period.

ARTICLE VI

DISCONTINUATION OF SERVICES

Section 6.1 Discontinuation of Services. The Service Receiver may elect to discontinue its receipt of any individual Service from time to time or all of the Services that it receives under this Agreement in its entirety, by providing to the Service Provider the advance written notice set forth in the applicable Schedule in respect of the Service that is to be discontinued; provided, however, that any discontinuation of any Service will not affect the amounts payable to the Service Provider hereunder in respect of the Services not so discontinued. The Service Receiver shall be liable to the Service Provider for all charges payable under this Agreement in respect of such discontinued Services that are delivered prior to the effective date of such discontinuation.

 

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ARTICLE VII

DEFAULT

Section 7.1 Termination for Default. Either Party may, by giving written notice to the other Party identifying the basis for such notice, terminate this Agreement as of the date specified in the notice of termination, if such other Party commits a material breach of this Agreement, which breach is not cured within thirty (30) days after receipt from the non-breaching Party of written notice of the breach specifying in reasonable detail the nature of the breach.

Section 7.2 Termination for Bankruptcy. In the event that a Party shall (i) file a petition in bankruptcy, (ii) become or be declared insolvent, or become the subject of any proceedings (not dismissed within sixty (60) calendar days) related to its liquidation, insolvency or the appointment of a receiver, (iii) make an assignment on behalf of all or substantially all of its creditors, or (iv) take any corporate action for its winding up or dissolution, then the other Party shall have the right to terminate this Agreement by providing written notice in accordance with Section 11.4.

ARTICLE VIII

INDEMNIFICATION

Section 8.1 Liabilities and Indemnities.

(a) Failure to Perform.

(i) In the event Kimberly-Clark fails to provide the Kimberly-Clark Services (or a portion thereof) in accordance herewith, the sole and exclusive remedy of Halyard shall be, at Halyard’s election, (A) to make a claim for indemnification pursuant to Section 8.1(b) (if available); (B) to require Kimberly-Clark to reperform the applicable Service (or relevant portion), without additional charge; (C) to withhold payment for such Service; provided, that if payment for such Service has already been made, Halyard shall be entitled, at its election, to a refund of the amount of such payment or to offset the amount of such payment against payments for other Services hereunder; (D) to the extent applicable, to have the right to terminate the Agreement under Section 7.1; or (E) to pursue its rights under Section 11.14.

(ii) In the event Halyard fails to provide the Halyard Services (or a portion thereof) in accordance herewith, the sole and exclusive remedy of Kimberly-Clark shall be, at Kimberly-Clark’s election, (A) to make a claim for indemnification pursuant to Section 8.1(b) (if available), (B) to require Halyard to reperform the applicable Service (or relevant portion) without additional charge, (C) to withhold payment for such Service; provided, that if payment for such Service has already been made, Kimberly-Clark shall be entitled, at its election, to a refund of the amount of such payment or to offset the amount of such payment against payments for other Services hereunder, (D) to the extent applicable, to have the right to terminate the Agreement under Section 7.1; or (E) to pursue its rights under Section 11.14.

 

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(iii) Each Party may pursue more than one remedy at the same time but ultimately may not recover more than once. Such rights are the Parties’ sole remedy for any non-performance, inadequate performance, faulty performance or other failure or breach by a Party in its capacity as a Service Provider under or relating to this Agreement.

(b) Indemnity by the Service Provider. Each party in its capacity as a Service Provider shall fully indemnify, defend and hold harmless the other Party in its capacity as a Service Receiver, and its Affiliates and their respective directors, officers, employees and agents, from and against any and all Damages, but only to the extent that such Damages relate to, arise out of, or result from (i) the Service Provider’s intentional cessation or suspension of, or refusal to provide, a material portion of the applicable Services as required hereunder (an “Abandonment”) or (ii) the Gross Negligence or Willful Misconduct of the Service Provider or its Affiliates in the performance of Service Provider’s obligations hereunder.

(c) Indemnity by the Service Receiver. Each party in its capacity as a Service Recipient shall fully indemnify, defend and hold harmless the other Party in its capacity as a Service Provider, and its Affiliates and their respective directors, officers, employees and agents, from and against any and all Damages incurred thereby relating to, arising out of, or resulting from the Service Provider’s provision of the applicable Services (including, for the avoidance of doubt, such Damages that arise out of the Service Provider’s or its Affiliates’ negligence or their breach of this Agreement), but in all cases excluding such Damages that relate to, arise out of, or result from (i) an Abandonment or (ii) the Gross Negligence or Willful Misconduct of the Service Provider or its Affiliates in the performance of Service Provider’s obligations hereunder. The foregoing indemnity shall not apply to Damages incurred directly by the Service Provider, including without limitation Damages to Service Provider’s real or tangible or intangible personal property and injury to the employees or agents of the Service Provider, but only to the extent that such Damages arise out of the acts or omissions of Service Provider or its Affiliates or agents (it being understood that this sentence shall not apply to Damages arising out of Claims (as defined below)).

(d) Survival. The provisions in this Section 8.1 shall survive and continue in full force and effect notwithstanding the expiration or termination of this Agreement for any reason whatsoever.

(e) Indemnification Procedures.

(i) Third-Party Claim. The indemnification obligation pursuant to Section 8.1(b) for each Party in its capacity as a Service Provider and the indemnification obligation pursuant to Section 8.1(c) for each party in its capacity as a Service Receiver, in each case, with respect to Damages claimed or asserted against a person claiming indemnification under this Agreement (an “Indemnified Party”) by a third party (that third-party claim or assertion, a “Claim”), are subject to the following terms and conditions:

(1) The Indemnified Party shall, with reasonable promptness after the Indemnified Party has notice of a Claim, (A) notify the Party from whom indemnification is sought (the “Indemnifying Party”) of the existence of that Claim and (B) transmit to the Indemnifying Party a notice (a “Claim Notice”) describing, in reasonable detail, the nature of the Claim, and copies of any papers served with respect to such Claim. Within

 

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fifteen (15) calendar days following receipt of notice from the Indemnified Party relating to any Claim, but no later than five (5) calendar days before the date on which any response to a complaint or summons is due if the Indemnifying Party has received notice from the Indemnified Party relating to any Claim at least five (5) days before that date, the Indemnifying Party shall notify the Indemnified Party that the Indemnifying Party will assume control of the defense and settlement of such claim (a “Notice of Assumption”).

(2) If the Indemnifying Party delivers a Notice of Assumption within the required notice period, the Indemnifying Party shall assume control (subject to Indemnified Party’s right to participate at its own expense) over the defense and settlement of the claim and diligently defend the claim; provided, however, that (i) the Indemnifying Party shall keep the Indemnified Party fully apprised as to the status of the defense, and (ii) the Indemnifying Party shall obtain the prior written approval of the Indemnified Party before entering into any settlement of such claim asserting any liability against the Indemnified Party, imposing any obligations or restrictions on the Indemnified Party, ceasing to defend against such claim or otherwise adversely impacting the Indemnified Party. The Indemnifying Party shall not be liable for any legal fees or expenses incurred by the Indemnified Party following the delivery of a Notice of Assumption; provided, however, that the Indemnified Party shall be entitled to employ counsel at its own expense to participate in the handling of the claim. The Indemnifying Party shall not be obligated to indemnify the Indemnified Party for any amount paid or payable by such Indemnified Party in the settlement of any claim if (x) the Indemnifying Party has delivered a timely Notice of Assumption and such amount was agreed to without the written consent of the Indemnifying Party, (y) the Indemnified Party has not provided the Indemnifying Party with notice of such claim and a reasonable opportunity to respond thereto, or (z) the time period within which to deliver a Notice of Assumption has not yet expired.

(3) If the Indemnifying Party does not deliver a Notice of Assumption relating to any claim within the required notice period, the Indemnified Party shall have the right to defend the claim in such manner as it may deem appropriate. The Indemnifying Party shall promptly reimburse the Indemnified Party for all reasonable costs and expenses incurred by Indemnified Party, including attorneys’ fees, in connection therewith to the extent it is a claim for which the Indemnifying Party is obligated to indemnify under this Agreement.

(ii) No Third-Party Claim. In the event any Indemnified Party claims indemnification against any Indemnifying Party under this Agreement but that claim for indemnification does not involve a Claim, the Indemnified Party shall (A) notify the Indemnifying Party and (B) transmit to the Indemnifying Party a notice (an “Indemnity Notice”) describing, in reasonable detail, the nature of the claim. Within thirty (30) calendar days after receipt of any Indemnity Notice, the Indemnifying Party shall notify the Indemnified Party whether the Indemnifying Party disputes its potential liability to the Indemnified Party under this Article VIII. If the Indemnifying Party does not notify the Indemnified Party within such thirty (30)-day period that the Indemnifying Party disputes its potential liability with respect to the claim described in such Indemnity Notice, any Damages resulting from such claim shall be payable by the Indemnifying Party under this Agreement.

(iii) The provisions of this Section 8.1(e) are in all cases subject to the limitations set forth in Sections 8.1 and 8.2 and elsewhere in this Agreement.

 

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Section 8.2 Limitations on Damages.

(a) SUBJECT TO THE REPERFORMANCE OBLIGATIONS IN SECTION 8.1(a)(i)(B) AND 8.1(a)(ii)(B), NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IN NO EVENT (REGARDLESS OF CAUSE) SHALL A PARTY IN ITS CAPACITY AS A SERVICE PROVIDER BE LIABLE TO A PARTY IN ITS CAPACITY AS SERVICE RECEIVER AND ITS AFFILIATES WITH RESPECT TO CLAIMS ARISING OUT OF THIS AGREEMENT, WHETHER UNDER THIS ARTICLE VIII OR OTHERWISE, FOR AMOUNTS IN THE AGGREGATE EXCEEDING THE AGGREGATE SERVICE CHARGES PAID TO THE APPLICABLE PARTY IN ITS CAPACITY AS A SERVICE PROVIDER UNDER THIS AGREEMENT IN THE TWELVE-MONTH PERIOD PRIOR TO THE OCCURRENCE GIVING RISE TO THE DAMAGES (SUCH AMOUNT, THE “CAP”); PROVIDED, HOWEVER, THAT DURING THE SIX MONTH PERIOD IMMEDIATELY FOLLOWING THE EFFECTIVE TIME, THE CAP SHALL BE EQUAL TO THE TOTAL SERVICE CHARGES PAYABLE TO THE APPLICABLE PARTY IN ITS CAPACITY AS A SERVICE PROVIDER UNDER THIS AGREEMENT OVER SUCH SIX MONTH PERIOD, CALCULATED AS THOUGH THE FULL SCOPE OF SUCH SERVICES WILL BE DELIVERED WITHOUT EARLY TERMINATION OR SUSPENSION.

(b) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY, THEIR RESPECTIVE AFFILIATES OR THEIR RESPECTIVE DIRECTORS, OFFICERS AND EMPLOYEES BE LIABLE UNDER THIS AGREEMENT FOR ANY CONSEQUENTIAL DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF ANY PROVISION OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT AN INDEMNIFYING PARTY’S INDEMNIFICATION OBLIGATIONS HEREUNDER FOR LIABILITIES ANY INDEMNIFIED PARTY MAY HAVE TO THIRD PARTIES FOR ANY CONSEQUENTIAL DAMAGES ARISING OUT OF THE CLAIM THAT IS THE SUBJECT OF SUCH INDEMNIFICATION. FOR PURPOSES OF THIS ARTICLE VIII, “CONSEQUENTIAL DAMAGES” MEAN ANY EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE OR SPECULATIVE DAMAGES (INCLUDING IN RESPECT OF LOST PROFITS OR REVENUES).

(c) To the extent that an Indemnified Party has incurred Damages that are subject to indemnification under this Article VIII for which (i) insurance coverages may be available or (ii) claims may be available against a third party in respect thereof, such Indemnified Party shall, to the extent possible, undertake good faith efforts to recover against such coverages and/or pursue such available third party claim. To the extent that an Indemnified Party obtains insurance proceeds or third party recoveries in respect of such Damages, such Indemnified Party shall use the funds actually received in connection with such insurance recovery or third party claim (in lieu of funds provided by the Indemnifying Party pursuant to the indemnification provisions of this Article VIII) to pay or otherwise satisfy such Damages, and the amount of any Damages for which indemnification is available under this Article VIII shall be reduced by the amount of such insurance or third party claim proceeds paid in cash to the Indemnified Party net of all out-of-pocket costs and expenses. If, after the making of any payment to an Indemnified

 

13


Party of Damages under this Article VIII, the amount of Damages to which such payment relates is reduced by actual recovery, settlement or otherwise by the Indemnified Party under any insurance coverage or against any third parties, the amount of such reduction will promptly be repaid by the Indemnified Party to the Indemnifying Party, net of all out-of-pocket costs and expenses.

(d) In the event that a Service Recipient incurs any Damages relating to, arising out of, or resulting from the Service Provider’s provision of the applicable Services (including, for the avoidance of doubt, such Damages that arise out of the Service Provider’s or its Affiliates’ negligence or breach of this Agreement) for which (i) insurance coverages may be available to Service Provider or (ii) claims may be available to Service Provider against a third party in respect thereof (including any agents used by Service Provider in providing the Services), Service Provider shall, to the extent possible, at the Service Recipient’s expense, either (x) undertake good faith efforts to recover against such coverages and/or pursue such available third party claim or (y) take such action as shall be necessary for the Service Recipient to be subrogated, to the extent possible, to the rights of the Service Provider with respect thereto. To the extent that the Service Provider obtains insurance proceeds or third party recoveries in respect of such Damages, the Service Provider shall pay the funds actually received in connection with such insurance recovery or third party claim to the Service Recipient, net of all out-of-pocket costs and expenses incurred by Service Provider in connection therewith, notwithstanding any of the limitations in this Section 8.2.

Section 8.3 Limited Recourse. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, (A) NO AFFILIATE OF ANY PARTY WILL HAVE ANY LIABILITY OR RESPONSIBILITY FOR, RELATING TO OR IN CONNECTION WITH A PARTY’S FAILURE TO PERFORM ANY TERM, COVENANT, CONDITION OR PROVISION OF THIS AGREEMENT AND (B) IN PURSUING ANY REMEDY FOR ANY PARTY’S BREACH OF ANY TERM, COVENANT, CONDITION OR PROVISION OF THIS AGREEMENT OR OF ANY DUTY OR STANDARD OF CONDUCT BASED ON NEGLIGENCE, GROSS NEGLIGENCE, STRICT LIABILITY OR PERSONAL INJURY OR OTHER TORT OR VIOLATION OF APPLICABLE GOVERNMENTAL REQUIREMENTS, OR OTHERWISE, THE OTHER PARTY WILL NOT HAVE RECOURSE AGAINST ANY PERSON OTHER THAN THE DEFAULTING OR BREACHING PARTY ITSELF NOR AGAINST ANY ASSETS OTHER THAN THE ASSETS OF THE DEFAULTING OR BREACHING PARTY ITSELF.

Section 8.4 Limitation on Remedies.

(a) EXCEPT AS SET FORTH IN SECTION 8.1 and 8.2(d), EACH PARTY HEREBY EXPRESSLY WAIVES ANY RIGHT IT MAY OTHERWISE HAVE TO CLAIM, COLLECT OR RECEIVE DAMAGES, TO ENFORCE SPECIFIC PERFORMANCE OR TO PURSUE ANY OTHER REMEDY AVAILABLE IN CONTRACT, AT LAW OR IN EQUITY IN THE EVENT OF ANY NON-PERFORMANCE, INADEQUATE PERFORMANCE, FAULTY PERFORMANCE OR OTHER FAILURE OR BREACH BY THE OTHER PARTY IN ITS CAPACITY AS A SERVICE PROVIDER UNDER THIS AGREEMENT, REGARDLESS OF CAUSE EXCEPT ONLY TO THE EXTENT CAUSED BY THE WILLFUL MISCONDUCT OF SUCH SERVICE PROVIDER OR ITS AFFILIATES.

 

14


(b) Without limiting the generality of any other provision hereof, it is not the intent of either Party (or their Affiliates) in its capacity as a Service Provider to render professional advice or opinions, whether with regard to tax, legal, treasury, finance, intellectual property, employment or other matters; no Party in its capacity as a Service Receiver shall rely on any Service rendered by or on behalf of the Service Provider or its Affiliates for such professional advice or opinions; and notwithstanding the Service Receiver’s receipt of any proposal, recommendation or suggestion in any way relating to tax, legal, treasury, finance, intellectual property, employment or any other subject matter, the Service Receiver shall seek all third-party professional advice and opinions as it may desire or need; and, with respect to any software or documentation provided in connection with the Services, the Service Receiver shall use such software and documentation internally and for their intended purpose only, shall not distribute, publish, transfer, sublicense or in any manner make such software or documentation available to other organizations or persons, and shall not act as a service bureau or consultant in connection with such software.

(c) A material inducement to the provision of the Kimberly-Clark Services is the limitation of liability, damages and recourse set forth herein and the release and indemnity provided by Halyard. A material inducement to the provision of the Halyard Services is the limitation of liability, damages and recourse set forth herein and the release and indemnity provided by Kimberly-Clark.

(d) Without limiting the generality of any other provision hereof, (i) none of Kimberly-Clark nor its Affiliates shall have any liability or responsibility for any loss of or Damage to any equipment related to the Halyard Business or the Included Non-Woven Business, which such liability, responsibility and risk shall be for the account of Halyard and its Affiliates, Regardless of Cause, and (ii) none of Halyard nor its Affiliates shall have any liability or responsibility for any loss of or Damage to any equipment related to the Retained Business, which such liability, responsibility and risk shall be for the account of Kimberly-Clark and its Affiliates, Regardless of Cause.

Section 8.5 Express Negligence. EXCEPT AS OTHERWISE EXPRESSED THEREIN, THE INDEMNITY, RELEASES AND LIMITATIONS ON DAMAGES, RECOURSE AND LIABILITIES IN THIS AGREEMENT (INCLUDING ARTICLES II AND VIII) ARE INTENDED TO BE ENFORCEABLE AGAINST THE PARTIES IN ACCORDANCE WITH THE EXPRESS TERMS AND SCOPE THEREOF, REGARDLESS OF CAUSE.

ARTICLE IX

CONFIDENTIALITY

Section 9.1 Confidentiality. The Parties each acknowledge and agree that the terms of the Distribution Agreement shall apply to information, documents, plans and other data made available or disclosed by one Party to the other in connection with this Agreement, including any such information Halyard may gain from access to the Kimberly-Clark Systems or that Kimberly-Clark may gain from access to the Halyard Systems.

 

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ARTICLE X

FORCE MAJEURE

Section 10.1 Effect and Definition. No failure or omission by either Party to perform or carry out its obligations in accordance with this Agreement (other than the obligation to make payment) shall give rise to any claim by the other Party or be deemed a breach of this Agreement if such failure or omission arises from a Force Majeure Event. “Force Majeure Event” shall mean any event or circumstance that is beyond the reasonable control of the Party affected thereby, including lightning, earthquakes, tornadoes, hurricanes, floods, wash outs, storms, fires, explosions, epidemics, acts of God, other natural disasters, acts of the public enemy, computer crimes, cyber terrorism, actions by any Governmental Authority or other governmental interference, insurrections, riots, civil disturbance, sabotage, terrorism, threats of sabotage or terrorism, vandalism, wars and war like actions (whether declared or undeclared and whether actual, pending or expected), confiscation, seizure, arrests or other restraints by a Governmental Authority, blockades, embargoes, boycotts, strikes, lockouts, labor unrest and other labor disputes, and any shortage of adequate power or transportation facilities.

Section 10.2 Notification Requirements. The Party claiming to be affected by a Force Majeure Event shall, as soon as reasonably practicable, notify the other Party of the beginning and end of any event claimed to be a Force Majeure Event and use commercially reasonable efforts to resume performance in accordance with this Agreement as soon as is reasonably practicable after the end of the Force Majeure Event.

Section 10.3 Cooperation. The Parties shall cooperate in reasonable respects with each other to find alternative means and methods for the provision of any suspended Service with respect to a Force Majeure Event.

ARTICLE XI

MISCELLANEOUS

Section 11.1 Construction Rules.

(a) A reference to an Article, Section or Schedule shall mean an Article or Section of, or a Schedule to, this Agreement unless otherwise explicitly set forth. The titles and headings herein are for reference purposes only and shall not in any manner limit the construction of this Agreement which shall be considered as a whole.

(b) The words “include,” “includes” and “including” when used in this Agreement shall be deemed in each case to be followed by the words “without limitation.”

(c) The words “hereof,” “herein” and “herewith” and words of similar import will, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement.

(d) The word “or” when used in this Agreement will not be exclusive.

(e) Words in the singular when used in this Agreement will be held to include the plural.

 

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(f) Unless specifically stated otherwise, all dollar amounts referred to in this Agreement or required to be paid pursuant to this Agreement are expressed in and shall be paid in United States Dollar funds.

Section 11.2 Entire Agreement. This Agreement and the Schedules and Exhibits referred to herein, and the documents delivered pursuant hereto, together with the other Operating Agreements, constitute the entire agreement between the Parties with respect to the subject matter contained herein, and supersede all prior agreements, negotiations, discussions, understandings, writings and commitments between the Parties with respect to such subject matter; provided that, in the event of any conflict between this Agreement and any other Operating Agreement, this Agreement shall control with respect to the subject matter herein.

Section 11.3 Choice of Law; Dispute Resolution.

(a) This Agreement shall be governed by and construed and enforced in accordance with the substantive laws of the State of Delaware and the federal laws of the United States of America applicable therein, without regard to any principles of conflicts of laws therein that would cause the laws of any other jurisdiction to apply.

(b) In respect of any dispute hereunder, the Service Coordinators shall first attempt to resolve such dispute in accordance with Section 2.2. If the Service Coordinators are unable to resolve any such dispute within the timeframes set forth therein, either Party may refer the dispute for resolution pursuant to Article XI of the Distribution Agreement.

Section 11.4 Amendment. This Agreement shall not be amended, modified or supplemented except by a written instrument signed by an authorized representative of each of the Parties.

Section 11.5 Waiver. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party or Parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is in writing signed by an authorized representative of such Party. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, or in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach.

Section 11.6 Partial Invalidity. Wherever possible, each provision hereof shall be interpreted in such a manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.

Section 11.7 Execution in Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by and delivered to each of the Parties.

 

17


Section 11.8 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns; provided, however, that the rights and obligations of either Party under this Agreement shall not be assignable by such Party without the prior written consent of the other Party. The successors and permitted assigns hereunder shall include, without limitation, any permitted assignee as well as the successors in interest to such permitted assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise).

Section 11.9 Third Party Beneficiaries. Except to the extent otherwise provided herein, the provisions of this Agreement are solely for the benefit of the Parties and their respective Affiliates, successors and permitted assigns and shall not confer upon any third Person any remedy, claim, liability, reimbursement or other right in excess of those existing without reference to this Agreement.

Section 11.10 Notices. All notices, requests, claims, demands and other communications required or permitted hereunder shall be in writing and shall be deemed given or delivered (i) when delivered personally, (ii) if transmitted by facsimile when confirmation of transmission is received, (iii) if sent by registered or certified mail, postage prepaid, return receipt requested, on the third Business Day after mailing or (iv) if sent by private courier when received; and shall be addressed as follows:

If to Kimberly-Clark, to:

Kimberly-Clark Corporation

351 Phelps Drive

Irving, Texas 75309

Attention: General Counsel

Facsimile: 972-281-1492

If to Halyard, to:

Halyard Health, Inc.

5405 Windward Parkway

Suite 100, South

Alpharetta, GA 30004

Attention: General Counsel

Facsimile: 770-587-7749

or to such other address as such Party may indicate by a notice delivered to the other Party.

 

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Section 11.11 Performance. Each Party shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any Subsidiary or Affiliate of such Party.

Section 11.12 No Public Announcement. Neither Kimberly-Clark nor Halyard shall, without the approval of the other, make any press release or other public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that any such Party shall be so obligated by law or the rules of any stock exchange or quotation system, in which case the other Party shall be advised and the Parties shall use commercially reasonable efforts to cause a mutually agreeable release or announcement to be issued; provided, however, that the foregoing shall not preclude communications or disclosures necessary to implement the provisions of this Agreement or to comply with the accounting and SEC disclosure obligations or the rules of any stock exchange.

Section 11.13 Authority. Each of the Parties represents to the other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with their respective terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.

Section 11.14 Specific Performance. In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party or the Parties who are or are to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of their rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived.

Section 11.15 Construction. This Agreement shall be construed as if jointly drafted by Kimberly-Clark and Halyard and no rule of construction or strict interpretation shall be applied against any Party.

Section 11.16 Exclusivity of Tax Matters. Subject to the second paragraph of Section 4.1, but notwithstanding any other provision of this Agreement, the provisions of the Tax Matters Agreement shall exclusively govern all matters related to Taxes.

Section 11.17 Relationship of Parties. Each Party in its capacity as a Service Receiver understands and agrees that the Service Provider’s relationship to such Party as a Service Receiver under this Agreement is strictly a contractual arrangement on the terms and conditions set forth in this Agreement, that no fiduciary, trust, partnership, joint venture, agency or advisory relationship exists between either Party as a Service Provider and the other Party as a Service Receiver, that all Services are provided by the Service Provider as an independent contractor and

 

19


that each Party in its capacity as a Service Receiver hereby waives any and all rights that it may otherwise have under applicable Governmental Requirements to make any claims or take any action against the other Party (or any of its Affiliates) as a Service Provider based on any theory of agency, fiduciary duty, relationship of trust or other special standard of care. Without limiting the generality of the foregoing, each Party acknowledges and agrees that the other Party owes no duties, fiduciary or otherwise, to such Party other than those expressly set forth in this Agreement.

Section 11.18 Further Assurances. From time to time, each Party agrees to execute and deliver such additional documents, and will provide such additional information and assistance as either Party may reasonably require to carry out the terms of this Agreement.

Section 11.19 Survival. The Parties agree that Articles IV, VIII, IX, and XI and any limitations on liability or responsibility and any exculpatory, disclaimer, waiver or similar provisions will survive the termination of this Agreement and that any such termination shall not affect any obligation for the payment of Services rendered or any other amounts due to a Party under this Agreement prior to termination.

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

 

KIMBERLY-CLARK CORPORATION
By:  

 

Name:  
Title:  
HALYARD HEALTH, INC.
By:  

 

Name:  
Title:  

Signature Page to Transition Services Agreement

 

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Transition Services Agreement (TSA)

Schedule of Services


Table of Contents

 

Table of Contents

     1   
Transition Services   

Information Technology

     3   

Facilities / Real Estate

     9   

Procurement

     11   

North Am. Shared Service Center (SSC)

     15   

Europe, Middle-East, & Africa (EMEA)

     18   

Corporate Reporting

     22   

Transportation

     24   

Human Resources

     26   

Latin American Operations (LAO)

     28   

Research & Engineering (R&E)

     30   

Regulatory & Quality (R&Q)

     33   

Ops Separation (OTC, FTS, Dist.)

     35   

Global Nonwovens (GNW)

     37   

Asia-Pacific (APAC)

     41   
Reverse Transition Services   

Facilities—AFC Nogales

     46   
Appendix   

Appendix I: Resource Rate Cards

     48   

Appendix II: (Non-SAP Applications)

     49   

 

1


Transition Services

 

2


Transition Services Agreement (TSA) Schedule of Services for:

INFORMATION TECHNOLOGY

 

Schedule A-1:    Information Technology
Provider:    Kimberly-Clark Corporation
Provider Contact:    Bud Kane
Recipient:    Halyard Health, Inc.
Recipient Contact:    Cindy Breshears
Geographic Scope:    Global
Overview of Services:    Kimberly-Clark will provide IT transition services to Halyard under four separate Schedules: the Global ITS Schedule and three regional Schedules (APAC, EMEA, and LAO). The vast majority of IT services and charges are part of the Global ITS Schedule. Exhibit 1 below provides an overview of the services provided in each of the four Schedules.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

3


Information Technology—DRAFT                                                              Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions
IT.1   

SAP Support—Basis, Hosting, Overhead

 

Global IT Operational Support

 

Global IT Stabilization and Migration

  

See Artifact I—Migration Timeline and Cost

 

     
IT.2   

Non-SAP Application Support—Hosting & Overhead

 

Global IT Operational Support

 

Global IT Stabilization and Migration

  

See Artifact I—Migration Timeline and Cost

 

     
IT.3   

End User Infrastructure Support & Management

 

Global IT Operational Support

 

•     Personal Computers

 

•     Messaging Services

 

•     SharePoint/Workflow

 

•     Voice & Video

 

•     Mobile Device Support

 

Global IT Stabilization and Migration

  

See Artifact I—Migration Timeline and Cost

 

     
IT.4   

Network Connectivity

 

Global IT Operational Support

   See Artifact I—Migration Timeline and Payment Schedule      

 

4


Information Technology—DRAFT                                                              Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions
IT.5    New Capability    Time & Materials. See Appendix 1—Resource Rate Cards      
  

Shared Services (embedded in IT.1, IT.2, and IT.3)

 

Shared Services are comprised of Hosting and Miscellaneous Services that are necessary for integrity of SAP Support, Non-SAP Application Support and End-User Infrastructure Support and Management.

 

Hosting

 

Miscellaneous Services

 

•     Governance

 

•     Project Management Office

 

•     TSA Delivery and Relationship Management

 

•     Architecture

 

•     Database

 

•     Security

  

Costs embedded within three clusters:

 

SAP Support

 

Non-SAP Application Support

 

End User Infrastructure

     
IT.6   

Facility Occupancy

 

*Occupancy cost to be reduced proportionally to IT service cost reductions over time (e.g., 10% reduction in IT TSA services shall reduce monthly facility occupancy cost by 10%).

   $94,151 per month*    12 months   

 

5


Artifact I – Migration Timeline and Cost

 

The chart below depicts the cost and the expected duration of services provided within this agreement. Color coding is used to refer to different phases in the migration of services. Proposed migration schedule is dependent on multiple factors including but not limited to, 3rd party vendor performance and Halyard organization ramp up.

 

Pre-Migration: K-C fully supports and maintains service. Migration: K-C provides primary support and service, while a third-party provider gains expertise, prior to the service being actively migrated to the third party. KT/Support: A third-party provider delivers primary support and service, while K-C continues to transfer knowledge to that provider and plays a secondary, support role. Steady State: K-C no longer supports this service.

 

LOGO

 

6


 

Artifact II—Monthly Allocation Schedule

 

The chart below depicts the expected duration of services and the percentage of the allocated cost provided within this agreement. Color coding is used to refer to different phases in the migration of services. Proposed migration schedule and costs are dependent on multiple factors including but not limited to, 3rd party vendor performance and Halyard organization ramp up.

 

Pre-Migration: K-C fully supports and maintains service. Migration: K-C provides primary support and service, while a third-party provider gains expertise, prior to the service being actively migrated to the third party. KT/Support: A third-party provider delivers primary support and service, while K-C continues to transfer knowledge to that provider and plays a secondary, support role. Steady State: K-C no longer supports this service.

 

LOGO

 

7


 

Artifact III—ITS Milestone Progress and Termination/Extension Notification Schedule

 

This schedule contains milestone review dates where Kimberly-Clark and Halyard will evaluate the migration progress and the achievability of planned termination dates by service. The migration schedule and costs are dependent on multiple factors, including but not limited to third-party vendor performance and Halyard organization hiring.

 

LOGO

 

8


Transition Services Agreement (TSA) Schedule of Services for:

FACILITIES / REAL ESTATE

 

Schedule A-2:    Facilities / Real Estate
Provider:    Kimberly-Clark Corporation
Provider Contact:    Len Anderson
Recipient:    Halyard Health, Inc.
Recipient Contact:    Chris Isenberg
Geographic Scope:    U.S. and Europe Sites
Overview of Services:    The Facilities / Real Estate services include on-going use of Kimberly-Clark facilities in the U.S. and Europe, along with real estate transaction support. The facilities in scope are Roswell, GA, Kings Hill, UK, and Nanterre, France. Facility services for the Neenah, WI, Knoxville, TN, and Brighton, UK sites are included within the IT, Procurement, Shared Services, and Transportation schedules.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

9


Facilities / Real Estate                                          Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions
FAC.1    Roswell Site Occupancy   

$414,779 per month for occupancy at the Pointe

 

$12,500 per month for occupancy at Hembree

See Exhibit 1 for 2015 cost breakdown

   14 Months   
FAC.2    Kings Hill and Nanterre Site Occupancy   

$15,213 per month total

 

Kings Hill: $12,467

Nanterre: $2,746

 

See Exhibit 2 for 2015 cost breakdown

  

14 months (Nanterre)

 

2 months

(Kings Hill)

  
FAC.3    Real Estate Transaction Coordination    $4,680 per month    9 months   

Exhibit 1: North America Sites Occupancy Cost

 

     2014      2015  

Site

   Nov      Dec      Jan      Feb      Mar      Apr      May      Jun      Jul      Aug      Sep      Oct      Nov      Dec  

Roswell

     427,279         427,279         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

North America Total

     427,279         427,279         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500         12,500   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Exhibit 2: Europe Sites Occupancy Cost

 

     2014      2015  

Site

   Nov      Dec      Jan      Feb      Mar      Apr      May      Jun      Jul      Aug      Sep      Oct      Nov      Dec  

Kings Hill

     12,467         12,467                                       

Nanterre

     2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Europe Total

     15,213         15,213         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746         2,746   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

10


Transition Services Agreement (TSA) Schedule of Services for:

PROCUREMENT

 

Schedule A-3:    Procurement
Provider:    Kimberly-Clark Corporation
Provider Contact:    Christine Borkowski
Recipient:    Halyard Health, Inc.
Recipient Contact:    Sukh Sandhu
Geographic Scope:    U.S.
Overview of Services:    The Procurement services defined below have been developed in coordination with Halyard to determine the required support levels over the service duration. In particular, services PCM.1—PCM.3 involve reductions in service support over time and may require adjustments (per the early termination and extension notification requirements) to align with Halyard’s organization hiring plan.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

11


Procurement                                                              Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions
PCM.1    Procurement operations and tactical services   

$42,000 per month initially

 

See Exhibit 1 for detailed cost breakdown and resource summary

 

Plus pass-through of 50% of cost for Procurement TSA Leader (contractor)—9 months

 

Plus pass-through travel expenses

   9 months   

PCM.2

 

 

PCM.2

(cont’d)

   Strategic Sourcing and Supplier Management   

$211,000 per month initially

 

See Exhibit 2 for detailed cost breakdown and resource summary

 

Plus pass-through of 50% of cost for Procurement TSA Leader (contractor)—9 months

 

Plus pass-through travel expenses

   12 Months   

 

12


Procurement                                                              Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions
PCM.3    Project management, training and analytics support   

$29,000 per month initially

 

See Exhibit 3 for detailed cost breakdown and resource summary

 

Plus pass-through travel expenses

   6 months   
PCM.4    Temporary labor for contract setup    Pass-through cost    9 months   
PCM.5   

Organization support for systems changes

 

Additional training for system changes

   Pass-through cost    6 months   
PCM.6    Facility Occupancy    $37,582 per month*    12 months   

Exhibit 1: Headcount transition schedule for PCM.1 (Procurement operations and tactical services)

 

PCM.1 Support Requirements

   November 1, 2014 – April 30, 2015      May 1, 2015 – July 31, 2015  

K-C Transactional Support

     

FTE Headcount

     4         0   

Cost/month

   $ 20,000       $ 0   

Accenture/GEP Support

     

FTE Headcount

     1         1   

Cost/month

   $ 7,000       $ 7,000   

K-C Systems Support

     

FTE Headcount

     1         0   

Cost/month

   $ 6,000       $ 0   

K-C Stores/DTR Support

     

FTE Headcount

     1         1   

Cost/month

   $ 9,000       $ 9,000   

PCM.1 Total

     
  

 

 

    

 

 

 

FTE Headcount

     7         2   
  

 

 

    

 

 

 

Cost/month

   $ 42,000       $ 16,000   
  

 

 

    

 

 

 

 

13


Exhibit 2: Headcount transition schedule for PCM.2 (Strategic Sourcing and Supplier Management)

 

PCM.2 Support Requirements

   November 1, 2014 –
January 31, 2015
     February 1, 2015 –
April 30, 2015
     May 1, 2015 –
July 31, 2015
     August 1, 2015 –
October 31, 2015
 

K-C North America Strategic Sourcing Support

           

FTE Headcount

     13         5         3         1   

Cost/month

   $ 166,000       $ 74,000       $ 42,000       $ 13,000   

K-C China Strategic Sourcing Support

           

FTE Headcount*

     3         3         3         0   

Cost/month

   $ 23,000       $ 23,000       $ 23,000       $ 0   

Accenture/GEP Strategic Sourcing Support

           

FTE Headcount

     2         2         2         0   

Cost/month

   $ 22,000       $ 22,000       $ 22,000       $ 0   

PCM.2 Total

           
  

 

 

    

 

 

    

 

 

    

 

 

 

FTE Headcount

     18         10         8         1   
  

 

 

    

 

 

    

 

 

    

 

 

 

Cost/month

   $ 211,000       $ 119,000       $ 87,000       $ 13,000   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* Duration for China headcount dependent upon the timing to establish the China legal entity, currently estimated at Q2, 2015

Exhibit 3: Headcount transition schedule for PCM.3 (Project management, training and analytics support)

 

PCM.3 Support Requirements

   November 1, 2014 – January 31, 2015      February 1, 2015 – April 30, 2015  

K-C North America Project management,
training and analytics support

     

FTE Headcount

     2         1   

Cost/month

   $ 29,000       $ 13,000   

 

14


Transition Services Agreement (TSA) Schedule of Services for:

NORTH AMERICA SHARED SERVICES

 

Schedule A-4:    North America Shared Services
Provider:    Kimberly-Clark Corporation
Provider Contact:   

Mike Stohr

Ted Banker

Michael Fox

Recipient:    Halyard Health, Inc.
Recipient Contact:   

Dave Crawford

Steve Linville

Renato Negro

Geographic Scope:    U.S., Canada, and Mexico
Overview of Services:    The North America Shared Services Center TSA services are composed of the six following areas: Accounting to Reporting, Capital Accounting / Research & Engineering Expense, Management Information Delivery, Vendor and Employee Financial Services, Supply Chain Accounting, Customer Financial Services. Note that Process Development Support (PDS) and Shared Services Management costs are embedded in the costs of the other six services.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

15


North America SSC                                                              Transition Services Agreement—Schedule  of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions

NAS.1

 

   Accounting to Reporting   

$54,600 per month

 

Plus pass-through travel expenses (estimated at $5,000 per month)

   12 months   

•     HFM (Hyperion Financial Management) Financial Statements (WD6, EOB)

 

•     Essbase Responsibility P&Ls (WD6, EOB)

 

•     Healthcare Working Capital

 

•     Months 1-4: WD12,EOB

 

•     Months 5-12: WD8,EOB

NAS.2

 

   Capital Accounting/Research & Engineering Expense    $9,000 per month    12 months   

•     PP&E Balance Sheet (WD6, EOB)

 

•     Capital Spending Reporting

 

•     Months 1-4: WD8, EOB

 

•     Months 5-12: WD6, EOB

NAS.3

 

   Management Information Delivery   

$55,000 per month

 

Plus pass-through travel expenses (estimated at $1,000 per month)

   12 months   

•     Global Management Profitability Reporting

 

•     Months 1-4: WD10, EOB

 

•     Months 5-12: WD8, EOB

 

•     Overhead Cost Reporting

 

•     Months 1-4: WD10, EOB

 

•     Months 5-12: WD8, EOB

 

•     Business Unit Forecast (Quarterly)

 

•     SG&A Budget (Annual)

 

•     Normal Vendor Master Requests

 

•     Months 1-4: 4 business days

 

•     Months 5-12: 3.5 business days

 

•     Urgent Vendor Master Requests (not to exceed more than 5% of total requests)

 

•     Months 1-4: 2 business days

 

•     Months 5-12: 1.5 business days

 

•     EPH Updates: simple changes (1 day), cross-regional, complex changes (10 days)

 

•     Complex changes limited to one time per year to be defined by Halyard

NAS.4    Vendor and Employee Financial Services   

$41,500 per month

 

Plus pass-through travel expenses (estimated at $4,000 per month)

   12 months   

•     First Pass Yield

 

•     Months 1-4: 84%

 

•     Months 5-12: 88%

 

•     Invoicing Accuracy

 

•     Months 1-4: 92%

 

•     Months 5-12: 95%

 

•     Ready to Pay

 

•     Months 1-4: 88%

 

•     Months 5-12: 91%

 

16


North America SSC                                                              Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions
NAS.5    Supply Chain Accounting   

$41,500 per month

 

Plus pass-through travel expenses (estimated at $7,000 per month)

  

12 months

  

•     COM

 

•     Months 1-4: WD3,9AM EST

 

•     Months 5-12: WD2,9AM EST

 

•     COS and Distribution

 

•     Months 1-4: WD3,5PM EST

 

•     Months 5-12: WD2,2PM EST

 

•     Standard Costs (First calendar day per quarter)

NAS.6    Customer Financial Services   

$74,100 per month

 

Plus pass-through travel expenses (estimated at $5,000 per month)

  

12 months

  

•     Days Cash Outstanding (DCO)

 

•     Months 1-4: 2.5 days

 

•     Months 5-12: 1.5 days

 

•     Past Due Invoices (PDI)—Domestic (<$6.5M)

 

•     PDI—Export (<$3.0M)

NAS.7    Facility Occupancy   

$17,698 per month*

  

12 months

  

 

17


EUROPE, MIDDLE-EAST, & AFRICA (EMEA)

 

Schedule A-5:

   Europe (Shared Services, Human Resources, Information Technology)

Provider:

   Kimberly-Clark Corporation

Provider Contact:

   Leroy Burnett

Recipient:

   Halyard Health, Inc.

Recipient Contact:

   Pierre Deschamps

Geographic Scope:

   Europe, Middle-East, and Africa

Overview of Services:

   The Europe, Middle-East, & Africa (EMEA) TSA services are composed of the four following areas: Shared Services, Human Resources, and Regional IT Services.

Start of Activity:

   Distribution Date

End Date:

   As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

18


Europe, Middle-East, & Africa (EMEA)

   Transition Services Agreement—Schedule of Services    Effective Date

ID

   Description of Service    Cost    Duration    Performance Exceptions
EUR.1    In-House Banking    $728 per month    14 weeks   
EUR.2    Procure-to-Pay (P2P)    $19,760 per month    12 months   
EUR.3    Order-to-Cash (OTC)    $16,463 per month    12 months   
EUR.4    General Accounting (GA)    $9,887 per month    12 months   
EUR.5    Financial Reporting    $19,709 per month    12 months   
EUR.6    Supply Chain Accounting    $310 per month    12 months   
EUR.7    Process Development Support (PDS) / System Testing    $2,360 per month    12 months   
EUR.8    South Africa OTC    $3,750 per month    12 months       

 

19


Europe, Middle-East, & Africa (EMEA)

   Transition Services Agreement—Schedule of Services    Effective Date

ID

   Description of Service    Cost    Duration    Performance Exceptions
EUR.9    Payroll Services for EMEA Countries   

$10,045 per month

 

Germany: €1,630

France: €1,308

Belgium: €2,035

Netherlands: €920

U.K.: €833

S. Africa: €676

   2 months   
EUR.10    Payroll Year-End Reconciliation and Consolidation    $1,675 per month    6 months   
EUR.11    Ad-hoc HR Consulting    $1,675 per month    6 months   
EUR.12    Payroll Data Entry and Service Support    $4,185 per month    6 months   
EUR.13    Tier 1 and 2 Workday Support    $1,200 per month    12 months   
EUR.14a   

Local IT Services

EMEA IT Application Support

   $14,833 per month    12 months   
EUR.14b    Non-SAP Applications Cluster    $3,667 per month    12 months   

 

20


Europe, Middle-East, & Africa (EMEA)

   Transition Services Agreement—Schedule of Services    Effective Date

ID

   Description of Service    Cost    Duration    Performance Exceptions
EUR.14c   

End User Infrastructure Cluster

Collaboration & Social

Messaging Services

Mobility (Wireless)

Personal Computers

Video and Voice

Telecom Infrastructure

   $30,250 per month    10 months   
EUR.14d    Network Cluster    $11,000 per month    10 months   
EUR.14e    Business Partner    $5,583 per month    12 months   
EUR.14f    Project Management Office    $3,542 per month    12 months   
EUR.14g    Systems Migration   

$50,000 per month

 

Based on approximately 6 FTEs dedicated to systems migration

   12 months   
EUR.15    Facility Occupancy    $9,175 per month*    12 months   

 

21


Transition Services Agreement (TSA) Schedule of Services for:

CORPORATE REPORTING

 

Schedule A-6:

   Corporate Reporting

Provider:

   Kimberly-Clark Corporation

Provider Contact:

   Karen Gilbert

Recipient:

   Halyard Health, Inc.

Recipient Contact:

   Dave Crawford

Geographic Scope:

   Global (consolidation)

Overview of Services:

   The Corporate Reporting services defined below are consultative in nature and no deliverables will be provided.

Start of Activity:

   Distribution Date

End Date:

   As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

22


Corporate Reporting

   Transition Services Agreement—Schedule of Services      Effective Date   

ID

   Description of Service    Cost    Duration      Performance Exceptions   

CRP.1

  

Corporate Reporting

 

•   With Halyard management, develop close calendar, deliverables, and standard procedures for consolidation and external financial reporting (i.e., SEC periodic and other filings)

 

•   Provide consultation on drafts of periodic reports and earnings release materials, including drafting documents as requested

 

•   Record consolidation and other entries, at the direction and with approval of Halyard management, to generate consolidated financial statements

 

•   Provide financial data as necessary to support consolidation and external financial reporting needs

 

•   Train stakeholders on financial information available and discussion/narrative requirements

 

Note: Services are consultative in nature and no deliverables will be provided

   $6,126 per month    4 months   

CRP.2

  

Securities and Exchange Commission (SEC) Reporting & Segregation of Duty (SOD) Consulting

 

•   Provide accounting and reporting consultation services

 

•   Provide reasonable assistance to auditors as needed

   $2,558 per month    4 Months   

CRP.3

  

Technical Accounting, Public Accounting Oversight Board (PCAOB), & Financial Accounting Standards Board (FASB) Support

 

•   Provide accounting/audit support as reasonably requested for knowledge transfer

   $1,785 per month    4 months   

 

23


Transition Services Agreement (TSA) Schedule of Services for:

TRANSPORTATION

 

Schedule A-7:    Transportation

Provider:

   Kimberly-Clark Corporation

Provider Contact:

   Mike Martin

Recipient:

   Halyard Health, Inc.

Recipient Contact:

  

Nancy Faust

Cesar Roques

Geographic Scope:

   U.S.

Overview of Services:

   The Transportation services are comprised of short-term support services with durations of 2 months and general support services with durations of 12 months.

Start of Activity:

   Distribution Date

End Date:

   As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

24


Transportation

   Transition Services Agreement—Schedule of Services      Effective Date   

ID

   Description of Service    Cost    Duration      Performance Exceptions   

TRA.1

   General Support    $28,685 per month    12 months   

TRA.2

   General Short-Term Support    $9,059 per month    2 months   

TRA.3

   Facility Occupancy    $8,152 per month*    12 months   

 

25


Transition Services Agreement (TSA) Schedule of Services for:

HUMAN RESOURCES

 

Schedule A-8:    Human Resources
Provider:    Kimberly-Clark Corporation
Provider Contact:    Jeno Marvel
Recipient:    Halyard Health, Inc.
Recipient Contact:    Rhonda Gibby
Geographic Scope:    U.S. and Canada
Overview of Services:    The HR services are comprised of the following areas: Payroll and tax processing, benefits administration, relocation and Global Assignee Program, Contact Center services, Workday support, recruiting, and social compliance audits.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

26


Human Resources

   Transition Services Agreement—Schedule of Services      Effective Date   

ID

   Description of Service    Cost    Duration      Performance Exceptions   

HR.1

   U.S. and Canada Payroll Processing    $33,000 per month    15 months   

HR.2

   U.S. and Canada Payroll Tax    $17,000 per month    12 months   

HR.3

   U.S. & Canada Benefits Administration    $81,550 per month    12 Months   

HR.4

   Relocation and Global Assignees Program    $5,800 per month    12 months   

HR.5

   U.S. and Canada Contact Center Services    $8,000 per month    12 months   

HR.6

   U.S. and Canadian Tier 1, 2, and 3 Workday Support    $12,000 per month    12 months   

HR.7

   Recruiting for U.S. and Canadian Based Roles   

$15,630 per month (fixed), plus variable pass through costs for each employee placed, based upon the following schedule of job grades:

Grades 5-6: $10,500

Grades 7-10: $8,000

Grades 11+: $4,000

Non-exempt::$1,500

   15 months   

HR.8

   Social Compliance Audits    $1,620 per month    6 months   

 

27


Transition Services Agreement (TSA) Schedule of Services for:

LATIN AMERICA OPERATIONS (LAO)

 

Schedule A-9:    Latin America Operations (LAO)
Provider:    Kimberly-Clark Corporation
Provider Contact:    Tim Domaszek
Recipient:    Halyard Health, Inc.
Recipient Contact:    Stephanie Drilling
Geographic Scope:    Latin American countries (Brazil, Colombia, Puerto Rico, Costa Rica, Panama)
Overview of Services:    The Latin American Operations (LAO) services are composed of the following five areas: Regional IT Service, Shared Services, Finance, Legal, and Payroll support.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

28


Latin Am. Operations (LAO)    Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions
LAO.1-3   

IT Support

 

Telecommunications Support

 

Physical Network Management

 

Messaging Management

 

General Help Desk

 

Asset Management

 

Back Office Systems

 

Application Help Desk

  

$3,697 per month

 

Brazil: $2,528

Colombia: $441

Puerto Rico, Costa

Rica, Panama: $728

   12 Months   
LAO.4   

Finance Support

 

Invoice and Accounts Payable Processing

  

$352 per month

 

Brazil: $352

   12 months   
LAO.5    Legal Support   

$975 per month

 

Brazil: $975

   12 months   
LAO.6    Payroll Processing   

$877 per month

 

Brazil: $877

   12 months   

 

29


Transition Services Agreement (TSA) Schedule of Services for:

RESEARCH & ENGINEERING (R&E)

 

Schedule A-10:    Research & Engineering (R&E)
Provider:    Kimberly-Clark Corporation
Provider Contact:    Laura Dellaripa
Recipient:    Halyard Health, Inc.
Recipient Contact:    Sam Chan
Geographic Scope:    U.S.
Overview of Services:    The Research & Engineering services are comprised of the following four areas; Sensory and Human Factors, Analytical Science and Test Method Development, and Physical and Compliance Testing.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

30


Research & Engineering (R&E)    Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions
RE.1    Sensory & Human Factors    $30,667 per month    6 months   
RE.2    Analytical Science (AS) and Test Method Development    $59,583 per month    24 Months   
RE.3    Physical and Compliance Testing    $12,500 per month    24 months   

Exhibit 1: Test Method List

 

Test Method
STM 00067 / STM 4507—Hydrostatic Pressure Test
STM 00103 / STM 2401—Absorbent Capacity—Vertical (Water)
STM 00104 / STM 2403—Vertical Wicking Rate
STM 00122 / STM 3224—Dimensions General
STM 00123 / STM 4011—Drape Stiffness—Cantilever Bending Method
STM 00136 / STM 5000—Brightness/Color/Opacity
STM 00146 / STM 5668—Grab Tensile Peak Stretch & Energy (NonW)
STM 00148 / STM 2200—Abrasion Resistance—Taber
STM 00149 / STM 2205—Martindale
STM 00150 / STM 2467—Absorbency Rate (3 Drops)
STM 00152 / STM 2471—Impact
STM 00153 / STM 2477—Resistance of Nonwovens to Low Surface Tension Liquids
STM 00155 / STM 2482—Resistance of NW to Penetration of Fluid
STM 00156 / STM 2483—Alcohol Repellency
STM 00157 / STM 2600—Mass Per Unit Area—Basis Weight
STM 00159 / STM 3010—5” Bulk

 

31


STM 00162 / STM 3801—Air Permeability
STM 00164 / STM 3806—MOCON
STM 00165 / STM 4000—Cup Crush
STM 00180 / STM 4563—Static Decay
STM 00190 / STM 5529—Tear
STM 00195 / STM 5650—Tearing Strength—Trapezoid Tear
Test Method
STM 00197 / STM 5671—180 Degree Peel—Raw Materials
STM 00198 / STM 5678—Strip Tensile of Nonwoven Fabrics
STM 00204 / STM 2437—Water Vapor Transmission Rate (WVTR)
STM 00287 / STM 3403—Fire 30 Sec—NFPA 702
STM 00291 / STM 5669—Bond Integrity of Nonwoven Laminates (Peel)
STM 00353 / STM 4569—Gelbo Lint
STM 00357 / STM 4566—Sliding Compression
STM 00360 / STM 3400—1 Sec. Fire
STM 00369 / STM 5708—Surgical Gown Seam Strength
STM 00370 / STM 5709—Surgical Gown Tie-Shear Test
STM 00391 / STM 5688—Seam Strength
STM 00402 / STM 4007—Handel-O-Meter
STM 5679—Puncture
TTM 00042—Fenestration Drape Blood Run-Off Test
TTM 00043—Glove Slipdown Meas Using the Glove Articulator
TTM 00173—Opacity & Fluid Penatration Test of Gowns
TTM 00292—Hook Peel Strength
TTM 00293—Hook Shear Strength
TTM 00294—Hook Adhesion to SMS
TTM 00406 Wing and Pull Tab Adhesive Peel—Sterile Wrap
TTM 00407—Wing Transfer Adhesive Shear—Sterile Wrap
 

 

32


Transition Services Agreement (TSA) Schedule of Services for:

REGULATORY & QUALITY (R&Q)

 

Schedule A-11:    Regulatory & Quality
Provider:    Kimberly-Clark Corporation
Provider Contact:    Mike Page
Recipient:    Halyard Health, Inc.
Recipient Contact:    Mizanu Kebede
Geographic Scope:    U.S.
Overview of Services:    The Regulatory & Quality (R&Q) services are composed of the four following areas: Global Clinical Affairs, Quality, and Global Product Safety.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

33


Regulatory & Quality (R&Q)

   Transition Services Agreement—Schedule of Services      Effective Date   
ID    Description of Service    Cost    Duration      Performance Exceptions   
RQ.1    Global Clinical Affairs   

Variable rate based on resource costs and
third-party pass through

 

Hourly Rate:

Grade 4-6: $160

Grade 7-9: $90

10 and Below: $50

   18 Months   
RQ.2    Quality    $5,720 per month    6 months   
RQ.3    Global Product Safety    $500 per month    12 months   

 

34


Transition Services Agreement (TSA) Schedule of Services for:

OPERATIONS SEPARATION (FTS, OTC, DISTRIBUTION)

 

Schedule A-12:    Operations Separation (FTS, OTC, Distribution)
Provider:    Kimberly-Clark Corporation
Provider Contact:    Julie Nackers
Recipient:    Halyard Health, Inc.
Recipient Contact:   

OTC: Lori Hand

FTS, Distribution:

Geographic Scope:    U.S.
Overview of Services:    The Operations Separation services are composed of Center of Excellence (COE) support for the Order to Cash (OTC), Forecast to Stock (FTS), and Distribution processes.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

35


Ops Separation (FTS, OTC, Dist.)                                               Transition Services Agreement—Schedule of  Services

     Effective Date   
ID    Description of Service    Cost    Duration      Performance Exceptions   

OPS.1

  

Order Management & Master Data Services

 

Supported Content Areas for Order Management & Master Data:

   $30,200 per month    12 months     
 
 
 
 
User support requests:
acknowledge 24 hours
from date/time contact
during normal business
hours
  
  
  
  
  

OPS.2

   Planner And Mill Material Flow Support—Forecast To Stock (FTS)    $30,200 per month    12 months     
 
 

 

 
 

Initial response to
request within 8
business hours

 

Training offered at least
quarterly

  
  
  

 

  
  

OPS.3

   Distribution Project and Operational Support   

Variable: $59.20 per hour (billed based on actual hours per month)

 

Plus pass-through travel expenses

 

Note: Total costs not to exceed $135,000 in services and $35,000 in travel over 12 months

   12 months     
 
 
 
Escalated user
support—Initial
response to request
within 8 business hours
  
  
  
  

 

36


Transition Services Agreement (TSA) Schedule of Services for:

GLOBAL NONWOVENS (GNW)

 

Schedule A-13:    Global Nonwovens (GNW)
Provider:    Kimberly-Clark Corporation
Provider Contact:    Larry Maher
Recipient:    Halyard Health, Inc.
Recipient Contact:    Mike Tuck
Geographic Scope:    U.S.
Overview of Services:    The Global Nonwoven (GNW) services are comprised of technical knowledge transfer, subject-matter expert (SME) support, prototyping services, process engineering and mill support, supply agreement support, engraving masters storage, and gown-machine start-up support.
Start of Activity:    Distribution Date
End Date:    As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

37


Global Nonwovens (GNW)                                                              Transition Services Agreement—Schedule of Services

   Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions

GNW.1

   Drawing and Documented Technical Knowledge Transfer    $3,077 total    1 week    Transfer of drawing and DTK will occur within 1 month of signed CDA

GNW.2

   Access to Subject Matter Experts (SMEs)   

$13,500 per month for November, 2014 through April, 2015 (1 FTE)

 

$6,750 per month for May, 2015 through October, 2015 (0.5 FTE)

 

Plus pass-through travel expenses (estimated at $20,250/year)

   12 months   

GNW.3

   New Material Prototyping   

Variable: Costing based on a machine, operator and raw material basis similar to Research Special Runs (RSRs).

 

The cost will be actual raw material cost and conversion cost. The conversion cost will range from $400 to $500 per machine hour. The conversion cost will be provided based upon the specific machine required and number of operators needed to run the trial. The cost should cover all variable and fixed conversion costs. Raw material cost will be based on actual raw materials consumed.

   2 years    Subject to availability. 1 week response time on availability

 

38


ID    Description of Service    Cost    Duration    Performance Exceptions

GNW.4

  

Process Engineering and Mill Support

 

Capital Engineering

 

Mill Support/Operations

 

SME Support

   Variable: Charter to be developed with scope of work and costs to be agreed to by both parties in the event this option is exercised    Per agreed upon project charter   

Advance notice: 6 months

 

Timeline to be developed with charter

 

Note: Due to the 12-14 month lead time for a rebuild, Kimberly-Clark will need to renegotiate the supply agreement at least 12 months prior to the end of the supply agreement

GNW.5

   Support for Supply Agreement   

These Services shall be delivered on a time & materials basis, and the following is a non-binding estimate of the fees

 

LCM: $129,000 per year (1 FTE)

 

Plus pass-through travel expenses (estimated at $13,500/year)

 

Planning: $91,000 per year per FTE (see Exhibit 1 for resource requirements)

 

Quality: $115,700 per year per FTE (see Exhibit 1 for resource requirements)

 

Note: Costs associated with material changes (e.g., resins, basis weight changes) will be handled in the supply agreement

 

Note: If either party experiences quality issues due to the other party’s design process, we will bill out appropriate incremental resources at an hourly rate. These resources will be subject to availability

   2 years   

GNW.6

   Storage of Calendar rolls and engraving masters    Rental cost of $1,000/month    2 years   

 

39


ID    Description of Service    Cost    Duration    Performance Exceptions

GNW.7

  

Gown Machine Start-up Support at Lexington

Mill Support/Operations

\

  

Fixed cost of $91,200

 

Plus pass-through travel expenses (estimated at $72,000)

  

Service expected to begin 1Q15 [Confirm that this is correct]

 

Operators (2 months)

 

Maintenance associate (2 weeks)

 

Gown Machine Leader (6 months)

  

Exhibit 1: Estimated Planning and Quality Support for Supply Agreement (FTEs by Quarter)

 

Planning    4Q14      1Q15      2Q15      3Q15      4Q15      1Q16      2Q16      3Q16  

TSA FTEs

     1.21         1.21         1.21         1.21         0.31         0.31         0.31         0.31   
Quality    4Q14      1Q15      2Q15      3Q15      4Q15      1Q16      2Q16      3Q16  

TSA FTEs

     0.08         0.07         0.07         0.07         0.01         0.00         0.00         0.00   

Note: TSA support required (FTEs) reflects the net support required as Halyard assumes responsibility for Planning and Quality Support for Supply Agreements

 

40


Transition Services Agreement (TSA) Schedule of Services for:

ASIA-PACIFIC (APAC)

 

Schedule A-14:

   Asia-Pacific (APAC)

Provider:

   Kimberly-Clark Corporation

Provider Contact:

   Shane McNabb

Recipient:

   Halyard Health, Inc.

Recipient Contact:

   Scott Fowler

Geographic Scope:

   Asia-Pacific countries (China, Hong Kong, Taiwan, Australia, New Zealand, Singapore, Malaysia, India, Japan, Philippines, Thailand, Sri Lanka)

Overview of Services:

   The Asia-Pacific services are composed of the four following areas: Regional ITS Services, Shared Services, Legal, and Back Office Support (HR, Finance).

Start of Activity:

   Distribution Date

End Date:

   As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

41


Asia-Pacific (APAC)                                              Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions

APA.1a

  

Regional ITS Services

 

Core Business Process (SAP + Highly-Integrated Applications) Incidents

 

SAP

   $7,300 per month    12 months   

APA.1b

  

Core Business Process (SAP + Highly-Integrated Applications) Small Enhancements

 

SAP

   $19,400 per month    12 months   

APA.1c

   Core Business Process Support Team    $8,000 per month    12 months   

APA.1d

  

End User Infrastructure Cluster

 

Personal Computers

 

Video and Voice

 

Telecom Infrastructure

 

Vendor Management

   $5,800 per month    12 months   

APA.1e

  

End User Infrastructure Cluster (External)

Includes oncharging external costs paid by KC but where services are shared by KC and Halyard e.g. in Milsons Point, NZ ,Far East(Singapore), Malaysia

 

Hardware Rental

 

Maintenance

 

Telecommunications

 

Depreciation

  

$23,300 per month

 

Singapore:

$1,300 per month

 

Australia:

$20,200 per month

 

Malaysia:

$1,800 per month

   12 months   

APA.1f

   Systems Migration    $75,000 per month   

12 months

(1 Nov 2014 to 31 Oct 2015)

  

 

42


Asia-Pacific (APAC)                                              Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions

APA.1g

   New Halyard Projects    Variable (to be priced at Kimberly-Clark ITS rates as per global rate card)    Variable (to be determined by project, maximum 24 months)   

APA.2a

  

Shared Services (1 of 2)

 

Accounts Payable

  

$2,250 per month

 

Australia: $1,600

 

Singapore: $650

  

12 months (Australia)

 

9 months (Singapore)

  

APA.2b

  

Shared Services (2 of 2)

 

Accounts Receivable (AR)

 

Fixed Assets (FA) Accounting

 

General Ledger (GL) & Reporting

 

Account to Report (ATR) Operations

 

Product Costing (PC)

  

$1,250 per month

 

Singapore costs by service:

AR: $200

FA:$100

GL: $650

ATR: $200

PC: $100

   9 months   

APA.3

   Fleet Management   

$374 per month

 

Australia: 400

(AUD$)

   12 months   

APA.4

   Payroll   

$2,080 per month

 

Singapore: 2,600

SGD

   12 months   

APA.5

   Provision of Cellular Services    Variable (pass-through cost based on actual Halyard employee usage)   

9 months (until

July 31, 2015)

  

 

43


Asia-Pacific (APAC)                                              Transition Services Agreement—Schedule of Services    Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions

APA.6

   Legal Services—Product Registration   

Variable (to be charged at standard Kimberly-Clark hourly rates)

 

Plus pass-through expenses incurred (e.g., travel, meeting costs)

   TBD   

APA.7

   Tax, Treasury & Credit Control and GL and Reporting   

$6,713 per month

 

Singapore: $6,713

   9 months   

APA.8a

   Support for China Based Employees (1 of 4)   

Variable (based on number and locations of employees)

 

Halyard Sales 0008: $15,856 per month

KC Far East: $3,171 per month

   12 months   

APA.8b

   Support for China Based Employees (2 of 4)    Variable (pass-through of all employment and associated costs)    12 months   

APA.8c

   Support for China Based Employees (3 of 4)   

Variable (based on number and locations of employees)

 

Halyard Sales 0008: $4,282 per month

KC Far East: $856 per month

   12 months   

APA.8d

   Support for China Based Employees (4 of 4)   

$3,011 per month

 

Halyard Sales 0008: $2,509 per month

KC Far East: $502 per month

   12 months   

 

44


Reverse Transition Services

 

45


Transition Services Agreement (TSA) Schedule of Services for:

FACILITIES—AFC NOGALES (REVERSE TRANSITION SERVICE)

 

Schedule B-1:

   Facilities—AFC Nogales (Reverse Transition Service)

Provider:

   Halyard Health, Inc.

Provider Contact:

   Thomas Owens

Recipient:

   Kimberly-Clark Corporation

Recipient Contact:

   Pam VanHout

Geographic Scope:

   Mexico (Nogales)

Overview of Services:

   The Facilities—AFC Nogales (Reverse Transition Service) services include on-going use of the Halyard facility in Nogales 1, Mexico.

Start of Activity:

   Distribution Date

End Date:

   As specified in the accompanying schedule of service; not to exceed 2 years after the Distribution Date

 

AFC Nogales Site Occupancy                                                              Transition Services Agreement—Schedule of Services

   Effective Date
ID    Description of Service    Cost    Duration    Performance Exceptions

AFC.1

   AFC Nogales Site Occupancy    $160,551 per month    12 Months   

 

46


Appendix

 

47


Appendix I: Resource Rate Cards

Unless otherwise documented in specific TSA Schedule of Services, the below rate cards will be utilized to calculate costs related to project based (time and materials) services.

 

United States

 

Title

   Grade    Hourly Rate  

Senior Resource

   4 to 6    $ 160   

Manager or Mid Level Resource

   7 to 9    $ 90   

Staff & Administrative

   10 and below    $ 50   

Note:

 

[1] 35% of base compensation was assumed for benefits

India

 

Title

   Grade    Hourly Rate  

Senior Resource

   4 to 6    $ 105   

Manager or Mid Level Resource

   7 to 9    $ 50   

Staff & Administrative

   10 and below    $ 20   

Note:

 

[1] 25% of base compensation was assumed for benefits (on-costs)
[2] Assumes 1 INR = 0.016 USD

Australia

 

Title

   Grade    Hourly Rate  

Senior Resource

   4 to 6    $ 180   

Manager or Mid Level Resource

   7 to 9    $ 110   

Staff & Administrative

   10 and below    $ 50   

Note:

 

[1] 16% of base compensation was assumed for benefits (on-costs)
[2] Assumes 1 AUD = 0.93 USD

United Kingdom

 

Title

   Grade    Hourly Rate  

Senior Resource

   4 to 6    $ 130   

Manager or Mid Level Resource

   7 to 9    $ 75   

Staff & Administrative

   10 and below    $ 50   

Note:

 

[1] 35% of base compensation was assumed for benefits
[2] Assumes 1 GBP = 1.68 USD

China

 

Title

   Grade    Hourly Rate  

Senior Resource

   4 to 6    $ 170   

Manager or Mid Level Resource

   7 to 9    $ 70   

Staff & Administrative

   10 and below    $ 25   

Note:

 

[1] 25% of base compensation was assumed for benefits (on-costs)
[2] Assumes 1 RMB = 0.16 USD

Global Information Technology

 

Title

   Grade    Hourly Rate  

Executive

   4 to 6    $ 260   

Sr. Professional

   7 to 9    $ 168   

Professional

   10 and below    $ 130   
 

 

General rate card assumptions:

 

[1] Rates represent “fully loaded costs” and account for the mid-point salary range by grade, target bonus and benefits
[2] 2080 hours was used as standard work-year

 

 

48


Appendix II: (Non-SAP Applications)—323 Applications

 

Business Function

  

Official Application Name

Customer Service    Axway Cyclone Interchange Tool
   B2B Customer Portal
   Customer Interaction Center (CIC) Europe
   Electronic Data Interchange (EDI)—GentranNT
   ePedigree Drug Batch History Documentation Process
   HC Datalliance (VMI—Vendor Managed Inventory)
   IBM VAN
   Integrity Product Portal Access Module
   Integrity Product Portal Translator Module
   Interface Repository (IR)
   ISSI / TEAMS Tax Exemption Administrative Management System
   Livingston International Screening Tool
   Month end Data Base (MDB)
   PRINCE—Price Increase and change tool
   Vistex Chargebacks
   Vistex Customer Incentives
   Integrity Product Portal (IPP)_DELETE
Finance/Tax    1042 Pro
   Accounts Payable Invoice Imaging (AP), Kofax
   Blackline
   Bloomberg Terminal
   CFS JPM Attachments
   Citi Direct
   Concur
   Enterprise Product Hierarchy
   Essbase NA BLISS
   Export Documents Billing Linking Process
   Fin-SSC Fixed Asset Write-Off Tool
   FIN-SSC PS Project Setup Wizard, Master Data Wizard
   FIN-SSC Sales Reporting SQL

 

49


   FirstStrike
   FX All
   GLSU—General Ledger Spreadsheet Uploader—APAC
   HDS
   HighRadius—ACA
   HighRadius—POD Retrieval
   HSBC
   Hyperion Financial Management
   JPMC Access—JP Morgan
   Oversight
   Paymetric
   Royal Bank of Canada
   SharePoint—Intercompany Invoice Process
   SSC Vertex—SAP
   Star Command Center (Cognos)
   Tax 1099 Pro
   Tax Global Integrator
   Tax Resarch and Development Tax Credit
   Treasury Currency Exchange Rate Upload
   Treasury Workstation—Kyriba
   WebFilings
   Winshuttle
HR    ABC—Japan Payroll
   ADP Payroll Tax Integration from SAP HR
   ADP Payroll Tax System
   AFAS—Netherlands Payroll
   Alicia- France Payroll
   Ancile—RWD uPerform
   Articulate Studio Pro 13
   BKC Clone and Test
   Ceridian—UK Payroll
   Citibank Integration
   ComplianceWire

 

50


   E-Blox HR System, SD WORX—Payroll system
   FUTA/SUTA Year End Process
   Global SAP HR
   Global SAP HR—Benefits
   Global SAP HR—Common Data Extract
   Global SAP HR—ESS—Portals—Benefits—VOE
   Global SAP HR—General Ledger
   Global SAP HR—Interfaces
   Global SAP HR—Master Data
   Global SAP HR—Payroll
   Global SAP HR—Tax
   Global SAP HR—Third Party Remittance
   HR—Talent Acquisition (Taleo)
   HR Award Choice
   HR Cross Application Time Sheet (CATS)
   HR Record of Employment-Canada (ROE)
   HR Royal Bank of Canada-Electronic Payment Manager
   HR Tax Factory
   HRIS Payroll—Australia (CHRIS)
   HRIS Payroll—Singapore (ORISOFT)
   HRIS Payroll—Thailand (THAI GO)
   IQN Integrations with Common Data Extract and Workday
   Loga—Germany Payroll
   N. America Payroll Back Feed To Workday
   Onboarding Form
   Paysquare—India Payroll
   Qualtrics
   Quyn—South Africa Payroll
   SAP Ad Hoc Query
   SAP HR Integration to Concur
   SAP HR Integration to Qualtrics
   SAP HR to Accenture Remedy Ticketing Tool
   SAP HR to AmeriGives

 

51


   SAP HR to Equifax Integration
   Time Management—Thailand SafeSkin
   TRESS—HR (Honduras, MX)
   Weichert
   Weichert Integration with SAP HR
   Workday
   Workday—TRESS Payroll Integration
   Workday for iPad-iPhone
   Workday to ABC (Japan Payroll) Integration
   Workday to Ceridian—UK Payroll Integration
   Workday to CHRIS—Australia Payroll Integration
   Workday to IdM Integration
   Workday to Orisoft Singapore Payroll Integration
   Workday to Paysquare—India Payroll integration
   Workday to Quyn—South Africa Payroll integration
   Workday to SAP AP Integration
   Workday to SAP HR Integration
   Workday to Thai Go Thailand Payroll Integration
Legal    Anaqua IP Management System
   BoardVantage
   Corporate Records Administration Website—CRA
   LGA AccessData
   LGA PCT Safe
   LGA Secretariat
   PatBase

 

Manufacturing—Shared

  

 

Calibration Manager—Blue Mountain

   Continiuum
   Corporate Safety Reporting
   C-SCAN
   Environmental Health and Safety (EHS)
   GNW APMS SAP Interface to NA PA4
   HISTORIAN—Data Collector/Historian Server, FactoryTalk Adm, AssetCentre, PI Interface, SQL Server
   IHS—Dolphin Comply Plus Web

 

52


   JMP
   Lexington- Automated Process Management System (APMS)—MIKON
   Lotus Notes
   MIDAS DE
   NA MSBI MIDAS Reporting (HC portion)
   One Touch Shipping version 2.0
   Panther-SSRS
   Rockwell—All Locations
Procurement    ACM—Assent Compliance
   D&B Supplier Risk Manager System
   internet-com.kimberly-clark.tc
   KC Travel Center Website
   Kelly Services—IQN
   Purchasing Card Program
   SRM—HP Catalog
Product Supply    CARS
   COMET
   CPC Capital Planning and Control System
   CzarLite International & Canada
   Demand Solutions (incl interfaces from ECC6 aka “DSRP”)
   EWMA
   Global Packaging System (GPS)
   GNW Blaster
   GNW INCA and Related Reporting
   GNW Xtrim
   HC-PLANNING TOOLS—Excel Based
   i2 Transportation Management System (TMS)—North America
   I-Flow eKit
   intranet-com.kcc.com/KCHC/DCDataExtract
   JDA Agile Business Process Platform
   KC CPT Quoting Tool
   Label Matrix
   PC*Miler

 

53


   PC*Miler Web Services
   RateWare
   Therefore Scanning—Australia
   TiCon
   Winshuttle
QA/RA/PS/CA    Complaint Handling—IFlow application
   CompliantPro
   CSAS (Compliance Security Access System)
   DataLab
   DCONTROL i-Flow Application
   Design Control Document System (DCDS)
   Device and Clearance Listing
   Easy Portal
   ETQ Reliance
   FMEA—MED
   HC Product Dictionary
   HC ScrapApp
   Health Care Audit Tracking
   I-Flow Hotline
   NORMSCAN
   Partners In Quality (PIQ)
   Product Safety Clearance System (PSCS)
   SAS (Statistical Analysis System)
   Track & Trend Tool
   Trackwise
R&E    AutoCAD
   AutoCAD 2009
   AutoCAD 2010
   AutoCAD 2014
   CLARITY-CONSUMER
   eZassi
   IBM Rationale DOORS
   MiniTab

 

54


   ProChain (Desktop)
   ProChain (Multi-license)
   Request Submission and Tracking (RST)
   Research Files
   Research Materials Management System (RMMS)
   SolidWorks Clients Software
   Solidworks ePDM and Solidworks client license
Sales/Marketing    Auto-Fleet
   BrightEdge
   Cast Iron
   CFS (formerly, CyberU)
   Coolief iPad app
   Docstream
   EPI
   EZQuote Pain Management Custom Kit Quote System
   Global Learning Plan
   Global Sales Incentives
   Global Territory Management (GTM)
   Halyard Corporate Intranet
   HC Customer Contacts System (CTM Bridge)
   HC KCUR
   HCR
   iLibrary Mobile App
   Image Hub (former GDAL)
   Leadature
   Magento
   Marketo
   MRD On-line
   On The Go Mobile App
   On-Q Mobile App
   Radian6
   Salesforce Logger
   SalesForce.com (SFDC)

 

55


   SmartFold Calculator Mobile Application
   Tableau
   Websites
   WebTrends OnDemand
   Wistia
Sustainability    SoFi5
   Sustainability Database (KCSDB)
Websites    http://www.competency.ap.kcc.com
   http://www.kcc.com/kchc/midas
   internet-au.com.halyardhealth
   internet-com.haiwatchdog
   internet-com.halyardhealth
   internet-com.halyardhealth.facebook
   internet-com.halyardhealth.global
   internet-com.halyardhealth.tc
   internet-com.halyardhealthdental
   internet-com.kchealthcare.jp
   internet-com.mic-key
   internet-com.Mic-key.br
   internet-com.Mic-key.es
   internet-com.mycoolief
   internet-com.myon-q
   internet-com.preventinfections
   internet-com.treasury-factory.diamond
   internet-com/es.halyardhealth
   internet-com/pt.halyardhealth
   internet-de.halyardhealth
   internet-fr.halyardhealth
   internet-in.halyardhealth
   internet-nl.halyardhealth
   internet-uk.co.halyardhealth
   Safeskin Thailand Intranet
Core Technology/IT    Account Manager

 

56


   Acronis Management Server
   Address Book Updater
   Adobe
   Adobe Acrobat 11.x
   Adobe Reader for iPad and iPhone
   Apple iTunes
   Avaya Communications Manager
   BMC Control-M
   Cisco Access Control Server (ACS)
   Cisco Anyconnect VPN Client
   Cisco Security Agent (HIPS)
   Cisco Security Manager (CSM)
   Cisco VPN Client
   Citrix
   Citrix Online Plugin
   Citrix Receiver
   Comodo Certificates
   Cryptocard—BlackShield
   Crystal Reports
   Data Transport Vehicle—WS-FTP
   E Business Access Manager (EBAM)
   EDI—IBM Document Exchange
   Electronic Fax Inbound
   Electronic Fax Outbound
   Firefight Review Manager
   Group Manager
   HC Shared drive
   Identity Management (IdM)
   Ingres
   Ipswitch
   K-C Remote Connect
   Kwizcom
   Language Line

 

57


   Lotus Domino
   Lync Mobile Client
   Metalogix
   Microsoft O365
   MobileIron (MDM)
   MOSAIC Domain
   NET Framework Digital Signing (.NET)
   Nth Generation
   Office 2010
   Office 2010 Language Packs
   Password Wizzard
   Pentazip
   PKI-Public Key Infrastructure
   Quantum Corp
   SAVVIS All Sites
   Service-Now
   SharePoint Search
   SLNET 5.3
   System Center Configuration Manager (SMS-SCCM)
   Team Foundation Services
   Traceability Matrix
   Transport Manager (RealTech)
   UNIX Privilege Manager (UPM)
   VCM: CheckPoint
   ViewDirect for Networks
   VM: Mobility Carrier
   Windows Server Update Services (WSUS) for Desktop

 

58