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 | 2003 |
Item Processing Agreement
Item Processing Agreement (215K)
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TABLE OF CONTENTS
1. DEFINITIONS ............................................................ 1
1.1. "AFFILIATE" .................................................... 1
1.2. "BUSINESS DAY" ................................................. 1
1.3. "CONFIDENTIALITY AGREEMENT" .................................... 1
1.4. "COSTS OF FUNDS FOR 1 DAY" ..................................... 2
1.5. "DELAYED FUNDS" ................................................ 2
1.6. "DISASTER RECOVERY PLAN" ....................................... 2
1.7. "ERROR LOSSES" ................................................. 2
1.8. "FORCE MAJEURE EVENT" .......................................... 2
1.9. "INITIAL TERM" ................................................. 2
1.10. "KEY PERSONNEL" ................................................ 2
1.11. "LIABILITY CAP" ................................................ 2
1.12. "FIRST EXPRESS AGENTS" ......................................... 2
1.13. "PARC" ......................................................... 3
1.14. "PARC RESOLVE" ................................................. 3
1.15. "FIRST EXPRESS PROJECT MANAGER" ................................ 3
1.16. "PERFORMANCE STANDARDS" ........................................ 3
1.17. "PROCESSING SITES" ............................................. 3
1.18. "PROJECT PLAN" ................................................. 3
1.19. "PRUDENTIAL PERSONNEL" ......................................... 3
1.20. "PRUDENTIAL PROJECT MANAGER" ................................... 3
1.21. "RECONSTRUCTION COSTS" ......................................... 3
1.22. "REMEDIAL COSTS ................................................ 3
1.23. "REMITTANCES" .................................................. 4
1.24. "RENEWAL TERM" ................................................. 4
1.25. "SERVICES" ..................................................... 4
1.26. "TAD" .......................................................... 4
1.27. "TERMINATION CHARGE" ........................................... 4
2. TERM ................................................................... 4
3. SERVICES ............................................................... 5
3.1. SCOPE OF SERVICES ............................................... 5
3.2. PROCESSING SITES ................................................ 5
3.3. CONTINUOUS PROCESSING ........................................... 5
3.4. BANK DEPOSIT PREPARATION ........................................ 5
3.5. LOCK BOX PICK UP ................................................ 5
3.6. THIRD PARTY CONTACTS ............................................ 6
3.7. SCOPE CHANGE .................................................... 6
4. COMPENSATION ........................................................... 7
4.1. FEES ............................................................ 7
4.2. OTHER EXPENSES .................................................. 7
4.2.1. Telecommunications Equipment Located on First
Express Premises .......................................... 7
4.2.2. Communication Lines ....................................... 7
4.2.3. Supplies .................................................. 7
4.3. IMPLEMENTATION COSTS ............................................ 7
4.4. TAXES ........................................................... 8
4.5. MOST FAVORED CUSTOMER ........................................... 8
5. TERMINATION ............................................................ 8
{PAGE}
5.1. PRUDENTIAL RIGHT TO TERMINATE ................................... 8
5.1.1. Uncured Breach ............................................ 9
5.1.2. Insolvency ................................................ 9
5.1.3. Change in Entity .......................................... 9
5.1.4. Error Losses .............................................. 9
5.1.5. Convenience ............................................... 9
5.2. FIRST EXPRESS RIGHT TO TERMINATE ................................ 10
5.2.1. Uncured Breach ............................................ 10
5.2.2. Bankruptcy ................................................ 10
5.3. TRANSITION RIGHTS ............................................... 10
5.4. RETURN OF PRUDENTIAL DATA ....................................... 11
6. PROJECT PLAN .......................................................... 11
6.1. PROJECT MANAGEMENT ............................................. 11
6.2. RIGHT TO REMOVE PERSONNEL ...................................... 11
6.3. KEY PERSONNEL .................................................. 11
7. ACQUISITION ........................................................... 12
8. EQUIPMENT AND SOFTWARE ................................................ 12
9. INTERFACE WITH PRUDENTIAL ............................................. 13
10. TRANSPORTATION ........................................................ 13
11. BILLING ............................................................... 13
11.1. BILL-TO ADDRESS ................................................ 13
11.2. PAYMENT TERMS .................................................. 14
11.3. OFFSET OF LIABILITIES .......................................... 14
12. DISASTER RECOVERY PLAN ................................................ 14
13. REPRESENTATIONS AND WARRANTIES ........................................ 14
13.1. CORPORATE AUTHORITY ............................................ 14
13.2. SERVICE QUALITY ................................................ 14
13.3. FIRST EXPRESS EMPLOYEES ........................................ 15
13.4. MAINTENANCE OF EQUIPMENT ....................................... 15
13.5. TITLE .......................................................... 15
13.6. COMPLIANCE WITH LAWS ........................................... 15
13.7. OUTSTANDING LITIGATION ......................................... 15
13.8. YEAR 2000 COMPLIANCE ........................................... 16
13.9. NO HARMFUL CODE ................................................ 16
14. PERFORMANCE STANDARDS ................................................. 16
15. LIABILITY ............................................................. 17
15.1 FIRST EXPRESS LIABILITY ......................................... 17
15.1.1. Definition ............................................... 17
15.1.2. Payment of Liabilities ................................... 17
15.1.3. Recoveries ............................................... 18
15.1.4. Liability for Breach of Representations and Warranties ... 18
15.1.5. Liability for intentional Acts or Gross Negligence ....... 18
15.1.6. Liability For Errors or Delays Without Regard to
Negligence ............................................... 18
15.1.7. Limitation of First Express Liability .................... 19
{PAGE}
15.1.8. Remedies Cumulative ...................................... 19
15.2. PRUDENTIAL LIABILITY ........................................... 19
15.2.1. Personal Injury and Property Damage ...................... 19
15.2.2. Gross Negligence and Willful Misconduct .................. 20
15.2.3. Prudential Limitation of Liability ....................... 20
16. INDEMNIFICATION ....................................................... 20
17. REMITTANCE VOLUMES .................................................... 21
18. RECORDS AND AUDIT ..................................................... 22
18.1. RETENTION OF FINANCIAL RECORDS ................................. 22
18.2. MAINTENANCE OF REMITTANCE RECORDS .............................. 22
18.3. DESTRUCTION OF RECORDS ......................................... 22
18.4. ACCESS TO FIRST EXPRESS PREMISES AND WRITTEN RECORDS ........... 22
18.5. EXTERNAL AUDIT OPINION ......................................... 23
18.6. UNDERCHARGES AND OVERPAYMENTS .................................. 23
18.7. FIRST EXPRESS FINANCIAL INFORMATION ............................ 23
19. REGULATORY AGENCIES ................................................... 23
20. SPECIAL SERVICES ...................................................... 24
21. REPORTS ............................................................... 25
22. NOTICES ............................................................... 25
23. CONFIDENTIAL INFORMATION AND OWNERSHIP OF DATA ........................ 26
23.1. CONFIDENTIAL INFORMATION ....................................... 26
23.2. OWNERSHIP OF WORK PRODUCT ...................................... 26
24. INSURANCE ............................................................. 27
24.1. POLICIES OF INSURANCE .......................................... 27
24.2. EVIDENCE OF INSURANCE .......................................... 28
24.3. SUBCONTRACTOR INSURANCE ........................................ 28
25. RELATIONSHIP OF THE PARTIES ........................................... 28
25.1. INDEPENDENT CONTRACTOR ......................................... 28
25.2. EMPLOYEE TAXES AND BENEFITS .................................... 28
26. FORCE MAJEURE ......................................................... 29
26.1. ALLOCATION OF RESOURCES ........................................ 29
26.2. FEE ADJUSTMENT ................................................. 29
26.3. RESUMPTION OF SERVICE .......................................... 29
27. NO TRANSFER ........................................................... 29
27.1. NO ASSIGNMENT .................................................. 29
27.2. NO SUBCONTRACTING .............................................. 29
27.3. NO CONVICT LABOR ............................................... 30
28. NON-USE OF PRUDENTIAL NAME ............................................ 30
29. EQUAL OPPORTUNITY ..................................................... 31
30. PROHIBITION OF CONFLICT OF INTEREST ................................... 31
{PAGE}
30.1. PRUDENTIAL POLICY .............................................. 31
30.2. UNDUE INFLUENCE ................................................ 32
30.3. N0 CONFLICTS ................................................... 32
31. FORBEARANCE ........................................................... 32
32. HEADINGS .............................................................. 32
33. SEVERABILITY .......................................................... 32
34. GOVERNING LAW AND SUBMISSION TO JURISDICTION .......................... 32
35. USE BY FORMER AFFILIATES, SUBSIDIARIES AND/OR BUSINESS UNITS .......... 33
36. ATTORNEYS' FEES ....................................................... 33
37. SURVIVAL .............................................................. 33
38. ENTIRE AGREEMENT ...................................................... 33
39. CONFLICT IN PROVISIONS ................................................ 33
SCHEDULE A DESCRIPTION OF SERVICES ................................ 35
SCHEDULE B FEES ................................................... 49
SCHEDULE C ERROR AND DELAY/FAILURE RATES .......................... 52
SCHEDULE D PROJECT PLAN ........................................... 53
SCHEDULE E TERMINATION CHARGE ..................................... 54
SCHEDULE F (INTENTIONALLY LEFT BLANK) ............................. 55
SCHEDULE G REPORT FORMATS ......................................... 56
SCHEDULE H DISASTER RECOVERY PLAN ................................. 57
SCHEDULE J RECORDS RETENTION POLICY ............................... 60
SCHEDULE K CONFIDENTIALITY AGREEMENT .............................. 61
SCHEDULE L REMOTE COMPUTING SERVICES AGREEMENT .................... 64
{PAGE}
ITEM PROCESSING AGREEMENT
This Item Processing Agreement (the "Agreement") made as of the 1st day of July
1999 ("Effective Date"), for services by and between First Tennessee Bank
National Association for services by its transaction processing affiliate First
Express (collectively "First Express"), organized under the laws of the State of
Tennessee, having its principal place of business at 165 Madison Avenue,
Memphis, Tennessee 38103; and Prudential Insurance Company of America
("Prudential"), a New Jersey corporation, having its principal place of business
at 751 Broad Street, Newark, New Jersey 07102.
WHEREAS, First Express is an expert in remittance processing and desires to
assist Prudential in achieving its cash collection goals in the most efficient
and customer-sensitive manner possible; and
WHEREAS, Prudential desires to retain First Express' expertise in remittance
processing;
NOW THEREFORE, Prudential and First Express agree as follows:
1. DEFINITIONS
Capitalized terms in this Agreement shall have the following meanings:
1.1. "Affiliate"
means corporate parent or any present and future direct or indirect
affiliate or subsidiary of its corporate parent or a successor by merger,
acquisition or combination.
1.2. "Business Day"
means Monday through Friday other than such holidays as observed by
Prudential. In the event that Prudential does not send First Express
notice as to the holidays being observed, holidays shall be: New Years
Day, Martin Luther King Day, President's Day, Memorial Day, Independence
Day, Labor Day, Veteran's Day, Thanksgiving Day, day after Thanksgiving
Day, and Christmas Day.
1.3. "Confidentiality Agreement"
means the Confidentiality Agreement between First Express and Prudential
dated January 12, 1998. attached hereto as Schedule K.
{PAGE}
1.4. "Costs of Funds for 1 Day"
means (Federal Funds Rate that day divided by 360) x Delayed Funds.
1.5. "Delayed Funds"
means the difference between the funds available to Prudential for
withdrawal at its depositories and the funds that would have been
available if the deposit deadline had not been missed. Prudential will
estimate the funds that would have been available by using the actual
availability received on similar deposits during the preceding four (4)
weeks.
1.6. "Disaster Recovery Plan"
means the document attached hereto as Schedule H that specifies the
procedures to be followed with respect to the continued provision of
Services in the event First Express' item processing system is unavailable
for use because it has been destroyed or damaged to such an extent that
First Express is unable, pending restoration of the system, to provide any
or all of the Services.
1.7. "Error Losses"
means all losses sustained by Prudential by reason of First Express'
errors or delays.
1.8. "Force Majeure Event"
means circumstances beyond a party's control including without limitation,
acts of God, war or other hostilities and domestic or foreign governmental
acts, orders or regulations (excluding labor and union-related activities
and the nonperformance of any First Express Agent regardless of cause).
1.9. "Initial Term"
means the period of time commencing on July 1, 1999 and expiring on June
30, 2004 unless sooner terminated pursuant to Section 2.
1.10. "Key Personnel"
means those First Express personnel identified in the Project Plan as
being critical to the performance of the Agreement.
1.11. "Liability Cap"
means First Express' avenge monthly compensation received from Prudential
over the three (3) calendar months prior to the current half year.
1.12. "First Express Agents"
means any director, employee, officer, subcontractor, agent or other
person or entity acting for, with or on behalf of First Express.
114212
|
Prudential
As referenced in this Item Processing Agreement:
Prudential Insurance Co – organized under the laws of the State of
Tennessee, having its principal place of business at 165 Madison Avenue,
Memphis, Tennessee 38103; and Prudential Insurance Co mpany of America
("Prudential"), a New Jersey corporation, having its principal place of business
at 751 Broad Street, Newark, New Jersey 07102.
WHEREAS,
_____________
Prudential Insurance Co – different
divisions or affiliates of Prudential.
11.1. Bill-to Address.
Prudential's bill-to address shall be as follows:
13
{PAGE}
The Prudential Insurance Co mpany of America
701 San Marco Boulevard,3 OC
Jacksonville, Florida 32207
c/o Robert W. VaVerka
Prudential may change its bill-to
_____________
Prudential Insurance Co – to such
other address(es) as the parties may hereafter notify each other in
writing:
If to Prudential: Paul J. Gletow
Vice President
Prudential Insurance Co mpany of America
290 West Mount Pleasant Avenue
Livingston, New Jersey 07039-2729
with a copy to: Robert W. VaVerka
Prudential Insurance Company
_____________
Prudential Insurance Co – President
Prudential Insurance Company of America
290 West Mount Pleasant Avenue
Livingston, New Jersey 07039-2729
with a copy to: Robert W. VaVerka
Prudential Insurance Co mpany of America
701 San Marco Boulevard, 3 OC
Jacksonville, Florida 32207
and 2nd Bruce Vasel
copy to: Prudential Insurance Company of America
_____________
Prudential Insurance Co – Robert W. VaVerka
Prudential Insurance Company of America
701 San Marco Boulevard, 3 OC
Jacksonville, Florida 32207
and 2nd Bruce Vasel
copy to: Prudential Insurance Co mpany of America
290 West Mount Pleasant Avenue
Livingston, New Jersey 07039-2729
and 3rd Technology Law and Contracts Grout
copy to: 80
_____________
dt 159738
;
TOTAL
As referenced in this Item Processing Agreement:
total s – site outage with an unknown resolution point.
o Long-term site disaster whose recovery will take days or weeks.
In the event of a partial site outage or short-term total s ite outage,
First Express will move Prudential's remittances out of the affected site as
well as intercept the remittances at the Post Office and air transport them to
another
_____________
Total
---------------------------------------------------------------------------------------------------------------------------------
{S – Expense
Page 1
{PAGE}
Projected Business As Usual Costs at Prudential vs. Proposed Costs
Current Contract: Jacksonville Life
{TABLE}
{CAPTION}
=================================================================================================================================
Year 1 Year 2 Year 3 Year 4 Year 5 Total
---------------------------------------------------------------------------------------------------------------------------------
{S } {C} {C} {C} {C} {C} {C}
Volumes 14,886,928 13,993,712 13,154,090 12,364,844 14,600,954
---------------------------------------------------------------------------------------------------------------------------------
Costs:
Processing $ 2,912,425 $ 2,854,
_____________
Total
---------------------------------------------------------------------------------------------------------------------------------
{S – 857 $ 715,459 $ 598,629 $ 3,548,110
=================================================================================================================================
{/TABLE}
Projected Value of Remittance Processing Contract with First Tennessee
{TABLE}
{CAPTION}
=================================================================================================================================
Year 1 Year 2 Year 3 Year 4 Year 5 Total
---------------------------------------------------------------------------------------------------------------------------------
{S } {C} {C} {C} {C} {C} {C}
Volumes 14,886,928 13,993,712 13,154,090 12,364,844 14,600,954
---------------------------------------------------------------------------------------------------------------------------------
Costs:
Processing $ 1,741,825 $ 1,637,
_____________
Total
---------------------------------------------------------------------------------------------------------------------------------
{S – PAGE}
Projected Business As Usual Costs at Prudential vs. Proposed Costs
Amended Contract: First Tennessee Processing All Work
{TABLE}
{CAPTION}
=================================================================================================================================
Year 1 Year 2 Year 3 Year 4 Year 5 Total
---------------------------------------------------------------------------------------------------------------------------------
{S } {C} {C} {C} {C} {C} {C}
Volumes 32,987,285 31,008,048 29,147,665 27,309,744 25,754,799
---------------------------------------------------------------------------------------------------------------------------------
Costs:
Processing $ 6,863,128 $ 6,774,
_____________
Total
-------------------------------------------------------------------------------------------------------------------------------
{S – 693,325 $ 1,472,132 8,160,626
=================================================================================================================================
{/TABLE}
Projected Value of Remittance Processing Contract with First Tennessee
{TABLE}
{CAPTION}
===============================================================================================================================
Year 1 Year 2 Year 3 Year 4 Year 5 Total
-------------------------------------------------------------------------------------------------------------------------------
{S } {C} {C} {C} {C} {C} {C}
Volumes 32,987,285 31,008,048 29,147,665 27,309,744 25,754,799
-------------------------------------------------------------------------------------------------------------------------------
Costs:
Processing $ 4,313,084 $ 4,054,
_____________
dt 1394262
;
First Tennessee Bank National Association;
| First Express;
Pruco Life Variable Universal Account
|
Preview
Full Doc
| 2003 |
Item Processing Agreement
Item Processing Agreement (215K)
Doc #170692: Click preview link for longer preview.
TABLE OF CONTENTS
1. DEFINITIONS ............................................................ 1
1.1. "AFFILIATE" .................................................... 1
1.2. "BUSINESS DAY" ................................................. 1
1.3. "CONFIDENTIALITY AGREEMENT" .................................... 1
1.4. "COSTS OF FUNDS FOR 1 DAY" ..................................... 2
1.5. "DELAYED FUNDS" ................................................ 2
1.6. "DISASTER RECOVERY PLAN" ....................................... 2
1.7. "ERROR LOSSES" ................................................. 2
1.8. "FORCE MAJEURE EVENT" .......................................... 2
1.9. "INITIAL TERM" ................................................. 2
1.10. "KEY PERSONNEL" ................................................ 2
1.11. "LIABILITY CAP" ................................................ 2
1.12. "FIRST EXPRESS AGENTS" ......................................... 2
1.13. "PARC" ......................................................... 3
1.14. "PARC RESOLVE" ................................................. 3
1.15. "FIRST EXPRESS PROJECT MANAGER" ................................ 3
1.16. "PERFORMANCE STANDARDS" ........................................ 3
1.17. "PROCESSING SITES" ............................................. 3
1.18. "PROJECT PLAN" ................................................. 3
1.19. "PRUDENTIAL PERSONNEL" ......................................... 3
1.20. "PRUDENTIAL PROJECT MANAGER" ................................... 3
1.21. "RECONSTRUCTION COSTS" ......................................... 3
1.22. "REMEDIAL COSTS ................................................ 3
1.23. "REMITTANCES" .................................................. 4
1.24. "RENEWAL TERM" ................................................. 4
1.25. "SERVICES" ..................................................... 4
1.26. "TAD" .......................................................... 4
1.27. "TERMINATION CHARGE" ........................................... 4
2. TERM ................................................................... 4
3. SERVICES ............................................................... 5
3.1. SCOPE OF SERVICES ............................................... 5
3.2. PROCESSING SITES ................................................ 5
3.3. CONTINUOUS PROCESSING ........................................... 5
3.4. BANK DEPOSIT PREPARATION ........................................ 5
3.5. LOCK BOX PICK UP ................................................ 5
3.6. THIRD PARTY CONTACTS ............................................ 6
3.7. SCOPE CHANGE .................................................... 6
4. COMPENSATION ........................................................... 7
4.1. FEES ............................................................ 7
4.2. OTHER EXPENSES .................................................. 7
4.2.1. Telecommunications Equipment Located on First
Express Premises .......................................... 7
4.2.2. Communication Lines ....................................... 7
4.2.3. Supplies .................................................. 7
4.3. IMPLEMENTATION COSTS ............................................ 7
4.4. TAXES ........................................................... 8
4.5. MOST FAVORED CUSTOMER ........................................... 8
5. TERMINATION ............................................................ 8
{PAGE}
5.1. PRUDENTIAL RIGHT TO TERMINATE ................................... 8
5.1.1. Uncured Breach ............................................ 9
5.1.2. Insolvency ................................................ 9
5.1.3. Change in Entity .......................................... 9
5.1.4. Error Losses .............................................. 9
5.1.5. Convenience ............................................... 9
5.2. FIRST EXPRESS RIGHT TO TERMINATE ................................ 10
5.2.1. Uncured Breach ............................................ 10
5.2.2. Bankruptcy ................................................ 10
5.3. TRANSITION RIGHTS ............................................... 10
5.4. RETURN OF PRUDENTIAL DATA ....................................... 11
6. PROJECT PLAN .......................................................... 11
6.1. PROJECT MANAGEMENT ............................................. 11
6.2. RIGHT TO REMOVE PERSONNEL ...................................... 11
6.3. KEY PERSONNEL .................................................. 11
7. ACQUISITION ........................................................... 12
8. EQUIPMENT AND SOFTWARE ................................................ 12
9. INTERFACE WITH PRUDENTIAL ............................................. 13
10. TRANSPORTATION ........................................................ 13
11. BILLING ............................................................... 13
11.1. BILL-TO ADDRESS ................................................ 13
11.2. PAYMENT TERMS .................................................. 14
11.3. OFFSET OF LIABILITIES .......................................... 14
12. DISASTER RECOVERY PLAN ................................................ 14
13. REPRESENTATIONS AND WARRANTIES ........................................ 14
13.1. CORPORATE AUTHORITY ............................................ 14
13.2. SERVICE QUALITY ................................................ 14
13.3. FIRST EXPRESS EMPLOYEES ........................................ 15
13.4. MAINTENANCE OF EQUIPMENT ....................................... 15
13.5. TITLE .......................................................... 15
13.6. COMPLIANCE WITH LAWS ........................................... 15
13.7. OUTSTANDING LITIGATION ......................................... 15
13.8. YEAR 2000 COMPLIANCE ........................................... 16
13.9. NO HARMFUL CODE ................................................ 16
14. PERFORMANCE STANDARDS ................................................. 16
15. LIABILITY ............................................................. 17
15.1 FIRST EXPRESS LIABILITY ......................................... 17
15.1.1. Definition ............................................... 17
15.1.2. Payment of Liabilities ................................... 17
15.1.3. Recoveries ............................................... 18
15.1.4. Liability for Breach of Representations and Warranties ... 18
15.1.5. Liability for intentional Acts or Gross Negligence ....... 18
15.1.6. Liability For Errors or Delays Without Regard to
Negligence ............................................... 18
15.1.7. Limitation of First Express Liability .................... 19
{PAGE}
15.1.8. Remedies Cumulative ...................................... 19
15.2. PRUDENTIAL LIABILITY ........................................... 19
15.2.1. Personal Injury and Property Damage ...................... 19
15.2.2. Gross Negligence and Willful Misconduct .................. 20
15.2.3. Prudential Limitation of Liability ....................... 20
16. INDEMNIFICATION ....................................................... 20
17. REMITTANCE VOLUMES .................................................... 21
18. RECORDS AND AUDIT ..................................................... 22
18.1. RETENTION OF FINANCIAL RECORDS ................................. 22
18.2. MAINTENANCE OF REMITTANCE RECORDS .............................. 22
18.3. DESTRUCTION OF RECORDS ......................................... 22
18.4. ACCESS TO FIRST EXPRESS PREMISES AND WRITTEN RECORDS ........... 22
18.5. EXTERNAL AUDIT OPINION ......................................... 23
18.6. UNDERCHARGES AND OVERPAYMENTS .................................. 23
18.7. FIRST EXPRESS FINANCIAL INFORMATION ............................ 23
19. REGULATORY AGENCIES ................................................... 23
20. SPECIAL SERVICES ...................................................... 24
21. REPORTS ............................................................... 25
22. NOTICES ............................................................... 25
23. CONFIDENTIAL INFORMATION AND OWNERSHIP OF DATA ........................ 26
23.1. CONFIDENTIAL INFORMATION ....................................... 26
23.2. OWNERSHIP OF WORK PRODUCT ...................................... 26
24. INSURANCE ............................................................. 27
24.1. POLICIES OF INSURANCE .......................................... 27
24.2. EVIDENCE OF INSURANCE .......................................... 28
24.3. SUBCONTRACTOR INSURANCE ........................................ 28
25. RELATIONSHIP OF THE PARTIES ........................................... 28
25.1. INDEPENDENT CONTRACTOR ......................................... 28
25.2. EMPLOYEE TAXES AND BENEFITS .................................... 28
26. FORCE MAJEURE ......................................................... 29
26.1. ALLOCATION OF RESOURCES ........................................ 29
26.2. FEE ADJUSTMENT ................................................. 29
26.3. RESUMPTION OF SERVICE .......................................... 29
27. NO TRANSFER ........................................................... 29
27.1. NO ASSIGNMENT .................................................. 29
27.2. NO SUBCONTRACTING .............................................. 29
27.3. NO CONVICT LABOR ............................................... 30
28. NON-USE OF PRUDENTIAL NAME ............................................ 30
29. EQUAL OPPORTUNITY ..................................................... 31
30. PROHIBITION OF CONFLICT OF INTEREST ................................... 31
{PAGE}
30.1. PRUDENTIAL POLICY .............................................. 31
30.2. UNDUE INFLUENCE ................................................ 32
30.3. N0 CONFLICTS ................................................... 32
31. FORBEARANCE ........................................................... 32
32. HEADINGS .............................................................. 32
33. SEVERABILITY .......................................................... 32
34. GOVERNING LAW AND SUBMISSION TO JURISDICTION .......................... 32
35. USE BY FORMER AFFILIATES, SUBSIDIARIES AND/OR BUSINESS UNITS .......... 33
36. ATTORNEYS' FEES ....................................................... 33
37. SURVIVAL .............................................................. 33
38. ENTIRE AGREEMENT ...................................................... 33
39. CONFLICT IN PROVISIONS ................................................ 33
SCHEDULE A DESCRIPTION OF SERVICES ................................ 35
SCHEDULE B FEES ................................................... 49
SCHEDULE C ERROR AND DELAY/FAILURE RATES .......................... 52
SCHEDULE D PROJECT PLAN ........................................... 53
SCHEDULE E TERMINATION CHARGE ..................................... 54
SCHEDULE F (INTENTIONALLY LEFT BLANK) ............................. 55
SCHEDULE G REPORT FORMATS ......................................... 56
SCHEDULE H DISASTER RECOVERY PLAN ................................. 57
SCHEDULE J RECORDS RETENTION POLICY ............................... 60
SCHEDULE K CONFIDENTIALITY AGREEMENT .............................. 61
SCHEDULE L REMOTE COMPUTING SERVICES AGREEMENT .................... 64
{PAGE}
ITEM PROCESSING AGREEMENT
This Item Processing Agreement (the "Agreement") made as of the 1st day of July
1999 ("Effective Date"), for services by and between First Tennessee Bank
National Association for services by its transaction processing affiliate First
Express (collectively "First Express"), organized under the laws of the State of
Tennessee, having its principal place of business at 165 Madison Avenue,
Memphis, Tennessee 38103; and Prudential Insurance Company of America
("Prudential"), a New Jersey corporation, having its principal place of business
at 751 Broad Street, Newark, New Jersey 07102.
WHEREAS, First Express is an expert in remittance processing and desires to
assist Prudential in achieving its cash collection goals in the most efficient
and customer-sensitive manner possible; and
WHEREAS, Prudential desires to retain First Express' expertise in remittance
processing;
NOW THEREFORE, Prudential and First Express agree as follows:
1. DEFINITIONS
Capitalized terms in this Agreement shall have the following meanings:
1.1. "Affiliate"
means corporate parent or any present and future direct or indirect
affiliate or subsidiary of its corporate parent or a successor by merger,
acquisition or combination.
1.2. "Business Day"
means Monday through Friday other than such holidays as observed by
Prudential. In the event that Prudential does not send First Express
notice as to the holidays being observed, holidays shall be: New Years
Day, Martin Luther King Day, President's Day, Memorial Day, Independence
Day, Labor Day, Veteran's Day, Thanksgiving Day, day after Thanksgiving
Day, and Christmas Day.
1.3. "Confidentiality Agreement"
means the Confidentiality Agreement between First Express and Prudential
dated January 12, 1998. attached hereto as Schedule K.
{PAGE}
1.4. "Costs of Funds for 1 Day"
means (Federal Funds Rate that day divided by 360) x Delayed Funds.
1.5. "Delayed Funds"
means the difference between the funds available to Prudential for
withdrawal at its depositories and the funds that would have been
available if the deposit deadline had not been missed. Prudential will
estimate the funds that would have been available by using the actual
availability received on similar deposits during the preceding four (4)
weeks.
1.6. "Disaster Recovery Plan"
means the document attached hereto as Schedule H that specifies the
procedures to be followed with respect to the continued provision of
Services in the event First Express' item processing system is unavailable
for use because it has been destroyed or damaged to such an extent that
First Express is unable, pending restoration of the system, to provide any
or all of the Services.
1.7. "Error Losses"
means all losses sustained by Prudential by reason of First Express'
errors or delays.
1.8. "Force Majeure Event"
means circumstances beyond a party's control including without limitation,
acts of God, war or other hostilities and domestic or foreign governmental
acts, orders or regulations (excluding labor and union-related activities
and the nonperformance of any First Express Agent regardless of cause).
1.9. "Initial Term"
means the period of time commencing on July 1, 1999 and expiring on June
30, 2004 unless sooner terminated pursuant to Section 2.
1.10. "Key Personnel"
means those First Express personnel identified in the Project Plan as
being critical to the performance of the Agreement.
1.11. "Liability Cap"
means First Express' avenge monthly compensation received from Prudential
over the three (3) calendar months prior to the current half year.
1.12. "First Express Agents"
means any director, employee, officer, subcontractor, agent or other
person or entity acting for, with or on behalf of First Express.
170692
|
TOTAL
As referenced in this Item Processing Agreement:
total s – site outage with an unknown resolution point.
o Long-term site disaster whose recovery will take days or weeks.
In the event of a partial site outage or short-term total s ite outage,
First Express will move Prudential's remittances out of the affected site as
well as intercept the remittances at the Post Office and air transport them to
another
_____________
Total
---------------------------------------------------------------------------------------------------------------------------------
{S – Expense
Page 1
{PAGE}
Projected Business As Usual Costs at Prudential vs. Proposed Costs
Current Contract: Jacksonville Life
{TABLE}
{CAPTION}
=================================================================================================================================
Year 1 Year 2 Year 3 Year 4 Year 5 Total
---------------------------------------------------------------------------------------------------------------------------------
{S } {C} {C} {C} {C} {C} {C}
Volumes 14,886,928 13,993,712 13,154,090 12,364,844 14,600,954
---------------------------------------------------------------------------------------------------------------------------------
Costs:
Processing $ 2,912,425 $ 2,854,
_____________
Total
---------------------------------------------------------------------------------------------------------------------------------
{S – 857 $ 715,459 $ 598,629 $ 3,548,110
=================================================================================================================================
{/TABLE}
Projected Value of Remittance Processing Contract with First Tennessee
{TABLE}
{CAPTION}
=================================================================================================================================
Year 1 Year 2 Year 3 Year 4 Year 5 Total
---------------------------------------------------------------------------------------------------------------------------------
{S } {C} {C} {C} {C} {C} {C}
Volumes 14,886,928 13,993,712 13,154,090 12,364,844 14,600,954
---------------------------------------------------------------------------------------------------------------------------------
Costs:
Processing $ 1,741,825 $ 1,637,
_____________
Total
---------------------------------------------------------------------------------------------------------------------------------
{S – PAGE}
Projected Business As Usual Costs at Prudential vs. Proposed Costs
Amended Contract: First Tennessee Processing All Work
{TABLE}
{CAPTION}
=================================================================================================================================
Year 1 Year 2 Year 3 Year 4 Year 5 Total
---------------------------------------------------------------------------------------------------------------------------------
{S } {C} {C} {C} {C} {C} {C}
Volumes 32,987,285 31,008,048 29,147,665 27,309,744 25,754,799
---------------------------------------------------------------------------------------------------------------------------------
Costs:
Processing $ 6,863,128 $ 6,774,
_____________
Total
-------------------------------------------------------------------------------------------------------------------------------
{S – 693,325 $ 1,472,132 8,160,626
=================================================================================================================================
{/TABLE}
Projected Value of Remittance Processing Contract with First Tennessee
{TABLE}
{CAPTION}
===============================================================================================================================
Year 1 Year 2 Year 3 Year 4 Year 5 Total
-------------------------------------------------------------------------------------------------------------------------------
{S } {C} {C} {C} {C} {C} {C}
Volumes 32,987,285 31,008,048 29,147,665 27,309,744 25,754,799
-------------------------------------------------------------------------------------------------------------------------------
Costs:
Processing $ 4,313,084 $ 4,054,
_____________
dt 1394320
;
First Tennessee Bank National Association;
| First Express;
Pruco Life of New Jersey Variable Appreciable Account
|