MASTERSERVICESAGREEMENT between HERMAJESTYTHE QUEENINRIGHT OF THE PROVINCE OFBRITISHCOLUMBIA, AS REPRESENTED BYTHE MINISTEROFMANAGEMENT SERVICES and IBM CANADALIMITED as ofDecember3, 2004 VA~OI:2017039:vII MASTERSERVICES AGREEMENT TABLE OF CONTENTS ARTICLE 1-INTERPRETATION 1 1.1 Definitions 1 1.2 Recitals 1 1.3 Headings 1 1.4 Interpretation ; 1 1.5 ActingReasonably 2 1.6 AccountingPolicy 2 1.7 CalculationofTimePeriods 2 1.8 CurrencyReferences : 3 1.9 Tune 3 1.10 Schedules 3 1.11 DocumentConflicts 3 1.12 JointDrafting : 4 1.13 ObjectivesoftheParties 4 1.14 Co-operationoftheParties 6 1.15 GeneralScope 6 ARTICLE2 -AGREEMENTTERMANDRENEWAL 6 2.1 InitialTerm 6 2.2 NoRenewalAssurances 7 2.3 NoExpropriation 7 2.4 RenewalOption 7 2.5 RenewalNotice 7 2.6 RenewalNegotiations 7 2.7 OneYearExtension 8 2.8 ExtensionNotice 8 2.9 ExtensionTerms 8 2.10 TenninationAssistance 8 2.11 EffectofTenriination~ 9 ARTICLE 3- TRANSITION 9 3.1 TransitionOverview 9 3.2 ModificationstoTransitionPlan 9 3.3 TransitionRequirements 9 3.4 Stage 1Transition : 10 3.5 FailuretoCompleteStage 1TransitionPlan 10 3.6 Stage2Transition 11 3.7 ProvinceLicenseforSpace 11 3.8 TransitionCosts 11 3.9 In-FlightProjects 11 3.10 TransitionPlan 12 ARTICLE4 -SERVICES 12 4.1 OverviewofSerVices 12 4.2 IncludedorInherentServices 13 4.3 ServicesChanges 13 4.4 Continuous ImprovementRecommendations 13 4.5 QualityManagement. 13 -i - VANOl:2017039vll 4.6 DocumentationandOngoingKnowledge Exchange 13 4.7 ProvinceRetainedResponsibilities 14 ARTICLE 5-SERVICEAND DATALOCATIONS 14 5.1 OverviewofServiceLocations 14 5.2 RelocationofIBMServiceLocations 15 5.3 ServiceLocationPolicies 15 5.4 AccesstoProvinceLocations 15 ARTICLE 6-SERVICELEVELS 15 6.1 GeneralCompliance 15 6.2 InterimServiceLevelTargets 16 6.3 Monitoring , ; 16 6.4 ReportsofAchiev~dServiceLevels 17 6.5 Reports ofServiceLevelFailures 17 6.6 ProblemAlertandEscalationProcedures 17 6.7 ProblemManagementandRootCauseAnalysis 17 6.8 ServiceLevelClassifications 17 6.9 ChronicFailure 18 6.10 RemediationPlan. 18 6.11 ServiceLevelCredits 18 6.12 Relief 20 6.13 JointReviewofServiceLevels 21 6.14 CustomerSatisfaction 21 ARTICLE 7 -BUSINESS CONTINUITYAND RECOVERY 21 7.1 Acknowledgement. 21 7.2 ServicesRecoveryManagement. 22 7.3 RolesandResponsibilities 22 7.4 RecoveryTimeObjectives 23 7.5 TestingofIBMServicesRecoveryPlan 23 7.6 BusinessContinuityRepresentative 23 7.7 ActualDisaster 24 ARTICLE 8-RELATIONSHIPMANAGEMENTANDHUMANRESOURCES 24 8.1 Governance 24 8.2 PowerandAuthorityofIBM 25 8.3 Province'sRighttoIssueDirectives ~ 25 8.4 Reliance onInstructions , 25 8.5 RequiredProvinceApproval. ~ 25 8.6 KeyPositions 25 8.7 ChangesinProvinceKeyPositions 26 8.8 ChangesinIBMKeyPositions 26 8.9 IBMKeyPositionFailures 27 8.10 Training 27 8.11 GeneralPrinciplesRegardingPersonnel. 28 8.12 RelationshipwithProvinceClients andStakeholders 29 8.13 AnnualStrategicPlan 30 ARTICLE 9-BENCHMARKING 30 9.1 Benclunarking :: 30 9.2 BenclunarkingCooperation 30 9.3 ComparisontoRepresentative Sample 30 9.4 Benchmarker'sReport 31 - 11 - VANOl:2017039vll ARTICLE 10 -INTELLECTUALPROPERTYAND PROPRIETARYRIGHTS 31 10.1 ApplicationofSections 31 10.2 ExcludedProjects ; 31 10.3 ProvinceIntellectualProperty 31 10.4 IBMIntellectualProperty 31 10.5 ThirdPartyIntellectualProperty 32 10.6 AssignmentRe: IntellectualProperty 32 10.7 IBMPersonnelandSubcontractors 32 10.8 ProvincePersonnelandSubcontractors 33 10.9 IBM'sUseofProvince IntellectualPropertyfor Services 33 10.10 IBM'sUseofModifications 33 10.11 Province'sUseofEmbeddedIBMIntellectualProperty 34 10.12 ProvinceModifications toEmbeddedIBMIntellectualProperty 35 10.13 Province'sUse ofIBM Software 35 10.14 Post-TerminationMaintenanceandSupport 35 10.15 ThirdPartyIntellectualProperty 35 10.16 ReservationofRights 35 10.17 Marking 36 10.18 SystemContaminants 36 10.19 SystemProtectionFeatures 36 10.20 ResidualInformation 36 10.21 OwnershipofOtherAssets : 36 ARTICLE 11 -BRANDINGAND TRADEMARKS 37 11.1 ProvinceMarks 37 11.2 BrandUse 38 ARTICLE 12 -CHARGES 38 12.1 Charges 38 12.2 Invoices 38 12.3 MethodofPayment. 38 12.4 Taxes 39 12.5 ValueForMoney 39 12.6 RectificationandRightofSet-Off 39 12.7 DisputedPayments 39 12.8 "WithholdingPayment. 40 12.9 Expenses 40 ARTICLE 13 -BENEFIT SHARINGAND GROWTH .41 13.1 BenefitSharingPrinciples 41 13.2 MarketingandReferenceAssistance .41 13.3 GainSharing 42 13.4 PromotionalMaterials 43 ARTICLE 14- PRNACY, SECURITYAND CONFIDENTIALITy .43 14.1 Acknowledgements 43 14.2 OwnershipandControlofPersonalInformation .43 14.3 DisclosureofPersonalInformation .44 14.4 Collection, Storage, RemovalofPersonalInformation .44 14.5 RequestforAccess toPersonalInformation .45 14.6 PrivacyObligationsForPersonalInformation .45 14.7 USAPatriotAct. 45 14.8 SafeguardingConfidentialInformation ; .46 14.9 PermittedDisclosureandUse ofConfidentialInformation 46 14.10 Confidentialityof thisAgreementandTransactionDocuments .47 -iii - VANOl:2017039vll 14.11 Exceptionsto ObligationofConfidentiality 47 14.12 DisclosureCompelledbyLaw 48 14.13 NoRights to ConfidentialInformation .48 14.14 ResidualInformation 48 14.15 NotificationofUnauthorizedUse ofConfidentialInformation .49 14.16 BreachofConfidentiality 49 14.17 OrganizationalStructureofIBM andSubcontractors 50 14.18 OrganizationalSecurity 50 14.19 PrivacyTraining 50 14.20 AuthenticationProjectandStandards 51 14.21 FOIPPAInspections 51 ARTICLE 15 _ MAINTENANCE OF RECORDS AND AUDITRIGHTS 51 15.1 MaintenanceofRecords 51 15.2 CustodyofProvince Records ~ 52 15.3 ControlofProvinceRecords 52 15.4 ReturnofProvinceRecords 53 15.5 CostsofRecordKeeping 53 15.6 DisposalofRecords 53 15.7 Locations ofRecords 53 15.8 StorageResponsibilities 54 15.9 AccessRights , : 54 15.10 FinancialAuditRights 54 15.11 Audit,InvestigationandInspectionRights 55 15.12 CostsofAudits, Investigations andInspections 55 15.13 OperationalAuditRights 55 15.14 Officeofthe ComptrollerGeneraL 56 15.15 GeneralAuditProvisions 56 15.16 CostsofAudits : 57 15.17 GeneralPrinciplesRegardingAudit, InvestigationandInspectionRights : 57 15.18 Deficiencies 58 15.19 CostofAudits, Investigations andInspections 58 ARTICLE 16- REPORTmG 59 16.1 Reports tobeConlpleted 59 16.2 FormatofReports ~ 59 16.3 AnnualReviewofReportingRequirements 59 ARTICLE 17- CHANGE MANAGEMENT 59 17.1 OperationalChangeManagement. 59 17.2 ChangeOrderProcess 59 17.3 Initiatingthe Change OrderProcess 60 17.4 ProvinceInitiatedChange 60 17.5 IBMInitiatedChange , 61 17.6 ChangeRequestImpactonCharges 62 17.7 ImplementationofChanges 62 17.8 ConsequentialAmendmentsto tinsAgreement. 62 17.9 RecordofChanges 62 ARTICLE 18-DEFAULT.ANDTERMmATION 62 18.1 Events ofTermination 62 18.2 Remedies oftheProvince 64 18.3 Terminationfor ChronicFailure 64 18.4 ProvinceTerminationEvent. 64 18.5 Remedies ofIBM 65 -iv- V~Ol:2017039vll 18.6 TerminationbyProvince for Convenience 65 18.7 TerminationNotice 65 18.8 TerminationFees 65 ARTICLE 19- TERMINATIONSERVICES 66 19.1 TerminationServices 66 19.2 TerminationAssistancePlan 67 19.3 QualityofServices 68 19.4 ChargesforTerminationServices ~ 69 19.5 TransferofAssets andContracts 69 19.6 TransferofPersonneL 70 19.7 IBM SeveranceCosts 70 19.8 ProvinceSeveranceCosts 70 19.9 AdditionalTernrinationArrangements 71 19.10 EquitableRemediesoftheProvince 71 ARTICLE 20- GENERALDUTIES AND OBLIGATIONS 72 20.1 GeneralDutiesandObligationsofProvince , 72 20.2 GeneralDutiesandObligationsofIBM ~ 72 20.3 CompliancewithApplicableLaws 72 20.4 CompliancewithSpecificLaws 73 20.5 CompliancewithCorePolicyManual. , 74 20.6 ObtainingandMaintainingLicencesandPermits 74 ARTICLE 21-REPRESENTATIONS,WARRANTIES AND COVENANTS 75 21.1 IBMRepresentations andWarranties 75 21.2 ProvinceRepresentations andWarranties 77 21.3 ServiceVolumeslNumberofSeats 77 21.4 DisclaimerofWarranties 77 ARTICLE22- INDEMNIFICATIONAND LllvIITATIONOF LIABILITY 78 22.1 GeneralIntent. · 78 22.2 IndemnificationbyProvince 78 22.3 Indemnification.byIBM 78 22.4 IBM IntellectualPropertyIndemnification 80 22.5 ProvinceIntellectualPropertyIndemnification 81 22.6 ThirdPartyClaimProcess : 81 22.7 Mitigation , ~ 83 22.8 Limitation 83 22.9 LimitationofLiability 83 ARTICLE23 - INSURAN'CE 85 23.1 Insurance 85 23.2 CertificateofInsurance : 85 23.3 AdequacyofInsurance 85 ARTICLE 24- DISPUTES 85 24.1 ITIformalDisputeResolution 85 24.2 Arbitration 87 24.3 Confidentiality' 88 24.4 ExceptionstoDisputeResolutionProcedure 88 24.5 ContinuityofServices 89 ARTICLE25 - CRITICAL SERVICESAND FORCE MAJEURE 89 25.1 CriticalServices 89 -V- VANOl:20l7039vll 25.2 ServicesRecoveryPlan 89 25.3 LabourDisruptionPlan 89 25.4 LabourDisruption 90 25.5 ForceMajeureEvents 90 25.6 NoticeofForceMajeureEvent. 90 25.7 MitigationofForceMajeureEvent. 91 25.8 ConsequencesofForceMajeureEvent. ; 91 25.9 EstablishingaForceMajeureEvent. 92 ·25.10 ExtensionforForceMajeureEvent. 92 ARTICLE 26- SUBCONTRACTORS ORGANIZATIONAL STRUCTURE 92 26.1 ResponsibilityforSubcontractors 92 26.2 InconsistentSubcontractTerms 92 26.3 GeneralContractTerms(Subcontractors) 93 26.4 SubcontractorMonitoring 93 26.5 Non-DisclosureDocuments 93 26.6 ConfidentialityBreaches ~ 94 26.7 ConfidentialityReAssignedContracts : 94 26.8 CopiesofExtracts 94 26.9 ConsenttoUseofSubcontractors 94 26.10 Exception 95 26.11 ProvinceCriteriaforKeySubcontractors 95 26.12 RemovalofSubcontractor 95 26.13 OtherBusinesswithSubcontractors 96 26.14 Suppliers 96 ARTICLE 27- ASSIGNMENT 96 27.1 AssignmentbyProvince 96 27.2 AssignmentbyIBM 96 ARTICLE28- CONTRACTUALRELATIONSHIP ~ 97 28.1 Relationship oftheParties : 97 28.2 NoPartnershiporJointVenture 97 28.3 . ConflictofInterest. 98 28.4 CodeofCoIiduct. 98 28.5· Province'sConflictofInterestPolicy 98 ARTICLE 29- PROVINCE SHARED INFRASTRUCTURE 98 29.1 OwnershipandControlofProvince SharedInfrastructure 98 29.2 UseofProvinceSharedInfrastructure 99 29.3 RestrictionsonAccessandUse 99 29.4 OrdinaryCourseChangestotheProvinceSharedInfrastructure 100 29.5 MaterialChangesto the ProvinceSharedInfrastructure 100 29.6 PaymentsfromIBM 101 29.7 FailureinProvinceSharedInfrastructuTe 101 29.8 TerminationofRights toProvince SharedInfrastructure 102 ARTICLE 30- TECHNOLOGYCHANGE/ TECHNOLOGY STANDARDS 102 30.1 TechnologyChange 102 30.2 TechnologyStandards 102 30.3 ImplementingIrrlprovedTechnology 103 30.4 IBMAssistancere Standards 103 ARTICLE 31 - PRODUCTPURCHASE 104 31.1 RelationshipBetweenthePartiesforProductProcurement. 104 - VI - VANOl:20l7039vll 31.2 ProcurementTermsandConditions 104 31.3 PurchaseOrderForecasting 104 31.4 Failureto SupplyMachines orPrograms 104 31.5 Requestto ChangeTechnologyBrand 105 31.6 RiskofLoss 105 ARTICLE 32-MISCELLANEOUS 105 32.1 Notice 105 32.2 AppropriationandApprovals 106 32.3 Severability 107 32.4 EntireAgreement. 107 32.5 Amendments ; 107 32.6 NoLiensorChargesagainstProvincialAssets : 107 32.7 Waiver 107 32.8 FurtherAssurances 108 32.9 Obligationsas Covenants 108 32.10 TransactionFeesandCommissions 108 32.11 Survival. , 108 32.12 Language 109 32.13 GoverningLaw 1.10 32.14 ChangeofLaw 110 32.15 NoFetteringofLegislativeAuthority , 111 32.16 Procurement. 111 32.17 BindingEffect. 111 32.18 NoThird-PartyBeneficiaries 111 32.19 Publicity 112 32.20 EnvironmentalPolicy 112 32.21 Counterparts ~ 113 ScheduleA Definitions ScheduleB Services Schedule C CertifiedCopies ofExtracts ofKey Subcontracts ScheduleD ServiceLevels ScheduleE SharedInfrastructure ScheduleF Charges ScheduleG TechnicalTransitionJRefresh ScheduleH Organizational Structure ScheduleI Application and Operating SoftwareLists ScheduleJ Equipment ScheduleK Standards-Hardware ScheduleL Facilities ScheduleM Key Positions ScheduleN SummaryFinancialInformation Schedule0 TerminationFees ScheduleP Governance Schedule Q FormofCertificateofInsurance ScheduleR PrivacyObligations ScheduleS - Reporting ScheduleT - "BrandPermission ScheduleU Change OrderProcessForms ScheduleV FormofNon-Disclosure Agreement ScheduleW FormofInvoice ScheduleX ServicesRecovery -vii - VANOl:2017039vll Schedule Y PurchaseTenns andConditions Schedule Z Transition -viii - VANOl:2017039vll THIS MASTER SERVICES AGREEMENT is entered into as of December 3,2004 (the "Effective Date"), between IBM Canada Limited ("IBM"), a company incorporated under the laws ofCanada and HerMajesty the Queenin Right ofthe'Province ofBritish Columbia as represented bytheMinister ofManagement Services (the "Province"). RECITALS A. The Province conducted a competItIve procurement process under the JSRFP for purposes ofestablishing a contractual business alliance with an experienced and qualified third party to, among otherthings, manage and delivercertain workplace supportservices to theProvince; B. As a result ofthe JSRFP process, the Province selected IBM to provide the workplace support services to the Province subjectto, andin accordance with, the terms ofthis Agreement; C. IBM is awholly-owned subsidiaryofIBM WorldTrade Corporation; D. The Parties are committed to fulfilling their obligations with respect to the security of information and protection of privacy of Personal Information, and have therefore structured this Agreement, and the relationship between the Parties, in order to ensure that the same is achieved where IBMhas access to orCustodyofPersonal Information; IN CONSIDERATION of the foregoing and the mutual covenants and agreements contained in this Agreement, the Parties covenantandagree as follows: ARTICLE 1-INTERPRETATION 1.1 Definitions. Unless otherwise provided in this Agreement (or in any Schedules attached to this Agreement), capitalized terms shall have the meanings given to those terms in the attached Schedule A (Definitions). In addition to the definitions contained in Schedule A (Definitions), any capitalized terms defined elsewhere inthis Agreementshallhave themeanings so givento them. 1.2 Recitals. The recitals to this Agreement are intended to be a general introduction to this Agreement and are'not intended to expand the scope of the Parties' obligations under this Agreement or to alter the plain meaning ofthe terms andconditions ofthis Agreement. 1.3 Headings. The division of this Agreement into Articles, Sections, Subsections, paragraphs and .clauses and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation ofthisAgreement. 1.4 Interpretation. Inthis Agreement, unless expresslystatedto the contrary: (a) the terms "Agreement", "hereof', "hereunder", and similar expressions refer, unless otherwise specified, to this Agreement taken as a whole andnotto any particularArticle, Section, Subsection, paragraph, clause orotherportionofthis Agreement; - 1- VANOl:2017039vll