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HomeMy WebLinkAboutPR 14594: AT&T BUSINESS COMM. - PHONE SYSTEM @ HEALTH DEPARTMENT3 Memorandum City of Port Arthur, Texas Purchasing Division TO: Stephen Fitzgibbons; Ciry Mana er FROM: Rebecca Underhill. Director of DATE: March 18, 2008 SUBJECT: Proposed Resolution No. 1494 RECOMMENDATION The Purchasing Division recommends the City Council's approval to enter the City of Port Arthur into an agreement with AT& T Business Communications for a new phone system for [he 2"a floor of the Health Department in the amount of $9,168.43 BACKGROUND The renovation of the 2"a floor of the Health Department makes it necessary to install a new phone system. The installation will take approximately forty-five (45) days from the receipt of the notice to proceed. There is a one year warranty. AT&T is a vendor under DIR, Department of Information Resources Volume Contracts operated by the State of Texas. This program is a State-run procurement program that allows city municipalities to purchase directly from vendors who have contracts established with the State of Texas for. their commodities, such as phone systems. BUDGETARY AND FISCAL EFFECT Funds will be allocated from 001-1301-X41.92-00 STAFFING EFFECT None SUMMARY The Purchasing Division recommends the City Council's approval to enter the City of Port Arthur into an agreement with AT& T Business Communications for a new phone system for the 2"a floor of the Health Department in the amount of 89,168.43 PR 14594 P. R. N0.14594 .03/04/08 DF RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AGREEMENT BETWEEN THE CITY OF PORT ARTHUR AND AT&T BUSINESS COMMUNICATIONS SERVICES FOR A NEW PHONE SYSTEM FOR THE 2Nn FLOOR OF THE HEALTH DEPARTMENT. WHEREAS, renovations to the 2"d floor Health Department has made it necessary to install a new phone system; and WHEREAS, the Purchasing Division recommends the City Council authorize the City Manager to enter into an agreement with AT&T Business Communications to install a new phone system on the 2"° floor of the Health Department; and WHEREAS, AT&T is a vendor under DIR, Department of Information Resources Volume Contracts operated by the Slate of Texas. This program is a State-run procurement program that allows city municipalities to purchase directly from vendors who have contracts established with the State of Texas for their commodities, such as digital phone systems; and WHEREAS, the warranty will be for one (1) year; and WHEREAS, the cost of the new phone system is $9,168.43; and WHEREAS, the timetable for the installation will be approximately forty-five (45) days after the receipt of the notice to proceed; and WHEREAS, the City can terminate this contract at its convenience which includes, but is not limited to, funding not being available in any budget cycle with thirty days written notice. PR 14594 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section I. That the facts and opinions in the preamble are true and correct. Section 2. That, the City Council deems it is in the best interest of the City to approve and authorize the City Manager to execute a contract for a new phone system for the 2aa floor of the Health Department between the City of Port Arthur and AT&T Business Communications Services, as delineated in Exhibit "A". Section 3. That, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of March 2008, A.D., at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following Vote: AYES: Mayor: Council.members: NOES: Mayor PR 14594 ATTEST: Acting City Secretary APPROVED AS TO FORM: Mark Sokol ' , Ci~Attome ~t Y Y [aN j~.~~~•q, APPROVED FOR ADMINISTRATION: Steve Fitzgibbons, City Manager ~jPROVED~ASATO FnUNDrAV_ AnILABILITY Rebecca Underhill, Director of Finance AS AGREED AT&T AUTHORIZED REPRESENTATIVE PR 14594 "EXHIBIT A" PR 14594 AT&T BUSINESS COMMUNICATIONS SERVICES HARDWARE AND SOFTWARE EQUIPMENT AGREEMENT CITY OF PORT ARTHUR Company Name: CITY OF PORT ARTHUR Ship to Customer Name: CITY OF PORT ARTHUR Ship to Contact: JOSEPH BROUSSARD Ship to Tel: (409)893-8162 Quote Number: pORTA2 Quote Date: 01/21/2008 Expiration Date: 0 312 112 0 0 8 Ship to Address: HEALTH DEPT 449 AUSTIN PORT ARTHUR, TX 77641 Delivery Date: Qty Part # Product ~ Unit Price Extended Price 20 NT8627JAAAE6 T7316e Telephone Set W/MWI -Charcoal $270.00 $5,400.00 1 NT7609AAADES BCM DSM32+ -Digital Station Media Bay Mod $1,381.00 $1,381.00 1 NTK00013 BCM Voice Messaging 16-Seat SW $1,936.00 $1,936.00 1 NTK00011 BCM Voice Messaging 4-Seat SW $484.00 $484.00 20 W4 Tone, Tag and Test Customers Present Cable $0.00 $0.00 Finance your new system with a AT&T Capital Services lease $1 Purchase FMV 12 Monthly payments of $813.33 $733.23 24 Monthly payments of $428.62 $386.67 36 Monthly payments of $301.18 $275.28 48 Monthly payments of $238.47 $217.09 60 Monthly payments of $201.43 $183.43 `Lease rates are for commercial leases only and do not include applicable taxes or maintenance costs Lease proposalsubject to credit approval and acceptance by ` AT&T Capital Services. Questions? Call 800.733-1481 Subtotal: $9,168.43 Note: Grand Total: $9,168.43 - All returns subject to a 20% restocking fee. -All shiSping and taxes are estimates. -Quote does not include applicable taxes. -The above prices do NOT include any required house and/or net-Pop cables or rnonthly line charges. ~ - - ASite Survey is required l this is a school, place of worship, warehouse, factory, residence, municipally, car dealership, trailer, multi floor installation or there is existing 1 A2 key equipment, there are any separate buildings that need to be cabled, new cables installed and the building is over 30 years old, special paging requests. It a Site Survey is not performed, customer may be subject to additional charges Dale Printetl: 01121!2008 Version 12.3b Release Date: 01111/08 CUStOmer Initials Equipment Subtotal: $9,201.00 Discount: $2.754.00 Equipment Total: $6,447.00 Shipping: $68.13 Installation: $2,653.30 ATBT Equipment Solutions -Voice CPE Support Services Addendum To Master Agreement Addendum No. This Addendum ("Addendum"), entered into by SBC Global Services, Inc. dba AT&T Global Services ("AT&T") and CITY OF PORT ARTHUR ("Customer") and effective as of the date last signed below ("Effective Date"), is an attachment to that certain Master Agreement ("Agreement") dated June 2004 between the parties thereto. The definitions contained in the Agreement are herein incorporated by reference. Customer Name: CITY OF PORT ARTHUR Customer Billing Address: HEALTH DEPT 449 AUSTIN PORT ARTHUR, TX 77641 Customer Billing Number: (409) 893-8162 Ext.: Location of Equipment (Delivery/Installation Site Address): HEALTH DEPT 449 AUSTIN PORT ARTHUR, TX 77641 Date of Submission: 1/21!2008 Lessor. Delivery Date: Installation/Cutover Date: Purchase Order Number: PURCHASE PRICE 1. Total Price of Equipment ....................................... $6,447.00 2: Total Charge for Installation/Cutover ..................... $2,653.30 3. Total Purchase Price .............................................$9,100.30 Taxes & Shipping will be listed separately on the invoice. PAYMENT TERMS' (select one based on criteria below) ~ Ootion 1 ^ Option 2 ^ Option 3 0 lion 4 Due Initial here Initial here Initial here Initial here Down Payment: SD% 25% 25% - $4,500.15 Delivery: 50% - Cutover: 50% 75% 25% 4500.15 TOTAL: 9 100.30 Option 1 is the standard billing terms for business sales. Option 2 is used for large businesses or other businesses that are purchasing over $16,000 and have been in business at least 2 years with DAB Paydex of > 60. Option 3 is only allowed if the Purchase Price is over $50,000 and the scheduled Cutover date is more than 60 days after execution of this Addendum. Option 4 is for non-standard billing and payment term requests and is subject to the approval of credit verifcation. All options are subject to Credit Approval. - SELECTION OF MAINTENANCE AND SERVICE PLANS: (For Warranty see Section 5) AT&T Maintenance Services ®Complete ^Essential ^ Dedicated ^Custom ^ ACCEPT -Customer Initials: ^ DECLINE -Customer Initials: Initial Term: Years From: 2/15/2009 To: 2/14/2010 Annual Price: Payment Term: (default is annual) ^ Prepay ^Annual ^Semi-Annual ^OuaRerly ^Monthly ^Financing CONFIDENTIAL INFORMATION This Agreement is for use by authorized employees of the pa Ries hereto only and is not for general distribution within or outside their companies. Addendum_Voice_CPE Support Services Page 1 of7 Revision Dafe OYfB/07 JR8741 ATBT Equipment Solutions -Voice CPE Support Services Addendum To Master Agreement ^ Complete ~ ^ Essential ^ ACCEPT -Customer Initials: ^ DECLINE -Customer Initials: Initial Term: ~ Years From:._ To: ~ Annual Price: Payment Terms-(default is annual): ^ Prepayment ^ Annual ^ Semi-Annual ^ Quarterty ~ Monthly ^ ACCEPT -Customer Initials: Initial Term: f~ Years From: Payment Terms (default is annual): ^ Prepayment ^ Annual ^ DECLINE -Customer Initials: ^ Financing To: Annual Price: Total Price: (See Equipment List for details) This Addendum may be withdrawn by AT&T if not signed and returned 6y the Customer within sixty (60) days from the Date of Submission referred-to above. _ the Parties' respective authorized ATBT GLOBAL SERVtGtS CITY OF PORT ARTHUR By: Br• Name: ~ ~ ~ Name: ~ - Title: - Title: Date: Date: - - NOTE: This Addendum must always be associated with a Master Agreement and may not be executed as a standalone agreement. Attachments: t. Statements of Work e.g. SOW, SCOW,PIG- ^ 2. Bill of Materials for Equipment and Services ^ - 3. Invoicing Schedule and Payment Terms ^ 4. Implementation Timeline ^ 5. Certificate of Acceptance ^ 6. Other: / 1 ^ CONFIDENTIAL INFORMATION This Agreement is for use by authorized employees of the parties hereto only and is not for general distribution within or outside their companies. - Addendum_Voice_CPE_Support Services Page 2 of 7 Revision Date OS/78/07 JR8741 AT8T Equipment Solutions -Voice CPE Support Services Addendum To Master Agreement SCOPE This Addendum covers ATBT's sale of voice customer premise equipment ("CPE" or "Equipment") (under the attached Bill of Materials, Order or other applicable document), installation andfor maintenance Service for such Equipment to be provided by AT8T under the Maintenance Plan identified above (the Maintenance Plan"), and as further described below. The Equipment is further described in the attached Bill of Materials, Order, SOW, Equipmentfisting or other applicable attachment. This Addendum also covers any Orders issued under this Addendum, as well as any additions or replacement to the Equipment or Service. 2. AT8T SERVICE AND SERVICE EXCLUSIONS A. During the term of the Maintenance Plan, AT8T will repair Equipment that malfunctions due to wear and tear resulting from normal use in accordance with standard operating instructions. Items excluded from coverage under the Maintenance Plan are headsets, portable telephones (cordless/wireless), answering machines, Customer provided servers, UPS systems, power conditioners, power supplies (including batteries and chargers), infra-building - distdbution cabling, consumables and any Software which is at a revision level not supported by the Software licensor. AT8T does not remove or recycle batteries. B. The Maintenance Plan and any and all warranties provided to Customer in this Addendum or the Master Agreement do not cover malfunctions or detects resulting from abnormal or nonstandard uses or conditions including, but not limited lo, the following types of causes: failure to provide a suitable environment for the Equipment, including exposure to improper temperature, humidity, chemicals or airborne agents, Customer abuse, misuse or use contrary to standard operating instructions; improper electrical voltages or currents; power or lightning surges or power interruption; improper storage or placement of the Equipment;. damage caused by unauthorized attachments or modification; use with or interconnection of the Equipment to incompatible electrical or mechanical devices; and the installation, maintenance or tlisassembly, repair or alteration of the Equipment by any person other than AT8T, or an entity expressly approved by AT8T in writing; or Force Majeure occurrences. In such excepted cases, Customer will pay AT8T in accordance with ATBT's then prevailing rates in connection with diagnosing such excepted problems and for any resulting repairs. (i) Customer is solely responsible for adequately backing up data and ensuring that its networks/systems are secured against unauthorized intrusion; and (ii) acknowledges that CPE/Software that supports telephony over Transmission Control Protocol/Internet Protocol. (TCP/IP) may experience certain compromises in performance, reliability and security even when performing as warranted and that failure to follow manufacturerAicensor recommendations may make such compromises more acute. C. ATBT's maintenance Service provided under the Maintenance Plan shall include preventive and remedial maintenance, as required by the CPE manufacturer's specifcations or by AT8T. Replacement parts and products may be new or equivalent to new in performance. Such parts and products will be furnished on an exchange basis and the returned parts and products will become the property of AT8T. ATBT's preventive and remedial maintenance Service obligations hereunder do not include, and AT8T is not otherwise obligated to provide replacement parts, software upgrades, software patches, second tier help desk support, or maintenance Service resulting in CPE functionality which exceeds that expressly provided. in manufacturers' or suppliers' specifications at the time such product was installed (including Year 2000 functionality). - D. AT8T makes no guarantee as to parts availability or technical support for Equipment or Software that has been discontinued by its manufacturer or reached "end of life" status. In the event replacement parts, software, or support are not readily available, AT8T shall advise Customer and Customer shall have the option at ATBT's discretion whether to replace or upgrade the Equipment or Software with a similar product at ATBT's then prevailing rates. In the event Customer declines to authorize such replacement, AT8T shall delete such Equipment from this Addendum and cease providing Service for such Equipment, and AT8T will issue, if applicable, apro-rata refund for such deletion. Additionally, Customer agrees to pay any additional charges that may be incurred by AT8T for product support services from~the manufacturer for products that are manufacturer discontinued or have been placed into "end of life" status. E. The periodic charges specified herein include all the stated maintenance Service performed at any time in connection with Emergencies and Non-Emergencies during Normal Business Hours. An "Emergency" is defined as any malfunction that leaves Customer unable to place or receive calls through the CPE, or any other failure agreed to in writing by the Parties. - CONFIDENTIAL fNFORMATION This Agreement is for use by authorized employees of the parties hereto only and is not for general distribution within or outside their companies. Addendum_Voice_CPE_Support Services Page 3 of 7 Revision Date OSr18/07 JR8741 AT&T Equipment Solutions -Voice CPE Support Services Addendum To Master Agreement F. Service performed outside of Normal Business Hours or outside the scope of the Maintenance Plan (as described in section 6 below) will be charged on a per occurrence basis billed in fifteen (15) minute increments with a minimum of two (2) hours at AT&T's then prevailing houdy or premium hourly rate including travel time to and from Customers- Site. Customer shall also be responsible for travel and living expenses, when required. Provisioning of such Service shall be at the discretion of AT&T and shall be subject to the availability of personnel and parts, if applicable. G. In [he event ATBT responds to Customer's request for Service and AT&T.reasonably determines that the problem was not caused by the Equipment maintained herein, Customer will be responsible for additional charges for such response at AT&T's then prevailing rates. H. AT&T's responsibility with respect to its obligation to, provide maintenance Service under this Addendum shall be limited to the Customers side of the CPE residing on the Demarcation Point ("Demarcation Point" is defined as the point between facilities controlled or owned by the local telephone carrier and those facilities controlled or owned by Customer). Maintenance Services include maintenance as described herein for. (i) the CPE and/or associated system software stated herein; and (ii) such other equipment and/or software which is subsequently added to this Addendum by an Order, attachment or other applicable document. In the event that AT&T responds to Customer's request for Service and Customer's claim of CPE malfunction is due to problems om the local telephone utility's side of the Demarcation Point due to malfunctions in equipment or software other than that covered by this Addendum, Customer will be responsible for additional charges for such response in accordance with AT&T's then prevailing rates. I. ATBT may suspend performance or terminate this Addendum if Customer fails to pay all amounts due by the applicable due date and such failure is not cured within 10 days of receiving AT&T's notice ofnon-payment. 3. SHIPPING AND DELIVERY A. All shipping, transportation and delivery charges for the Equipment, including expedites, shall be paid by Customer. AT&T shall use commercially reasonable efforts to deliver the Equipment by the delivery date specifed in this Addendum. Customer may, upon written notice to AT&T no later than ten (10) days prior to delivery, postpone the delivery, installation or Cutover dates specified in this Addendum one (1) time. B. Such postponement shall not exceed thirty (30) days from the originally scheduled delivery, installation or Cutover dates and is subject to price changes. 4. INSTALLATION AND CUTOVER In the event ATBT connects the Equipment or installs the Software on such Customer owned equipment, ATBT shall not be liable for any damage to such Customer owned equipment, unless due to AT&T's sole negligence. AT&T shall use commercially reasonable efforts to complete installation and Cutover of the Equipment by the dates specifed in this Addendum. Cutover shall be deemed accomplished upon connection to the telephone network to place and receive calls. Cutover of Equipment that is not dependent on the telephone network will occur when the Equipment is operational. 5. WARRANTY A. Unless otherwise provided within Bill of Materials, Statement of Workor other attachment, the "waranty Period" for Equipment shall be twelve (12) months (and in the case of AT&T-provided Software related to the Equipment, ninety (90) days (or such longer period provided by ATBT's applicable Software licensor)) from the date of delivery to the carrier for shipment, or from the date of installation when AT&T provides installation (or from such other date as determined by the applicable Equipment/Software manufacturerAicensor). AT&T warrants that during the waranty Period, the CPE/Software shall .materially conform to the manufacturer's/licenser's published specifications. If Customer notifies AT&T of a material defect during the waranty Period, AT&T shall, at AT&T's sole option, repair or replace the EquipmenUSoftware, free of charge to Customer: AT&T's repair or replacement of CPE/Software shall be - Customer's sole remedy for breach of the waranty as stated herein. All warranty Services will be performed during Normal Business Hours (8:00 AM - 5:00 PM local time) unless the Customer has purchased Complete level of Warranty service (as described in section 6 below) at the time of initial purchase. All waranty Services performed outside of Normal Business Hours will be charged on a per occurence basis billed in fifteen (15) - minute increments with a minimum of two (2) hours at AT&T's then prevailing houdy or premium hourly rate including travel time to and from Customer's Site. B. During the Warranty Period, any change in the location of CPE must be performed by AT&T and shall be at Customer's expense. C. Customer may request-waranty Service twenty-four (24) hours-a day, seven (7) days a week by calling ATBT. If Customer's problem is an Emergency, ATBT will use reasonable commercial efforts to respond tc Customer's report of a malfunction by beginning remote.diagnosis, as appropriate within two (2) business hours for PBX systems and four (4) business hours for key, hybrid or any other system, and will complete the appropriate repairs as soon as reasonably practical. Remote diagnostics require customer provided access line and remote access device on all covered equipment with capabilities. CONFIDENTIAL INFORMATION This Agreement is for use by authodzed employees of the parties hereto only and is not for general distribution within or outside their companies. Addendum_VOice_CPE_Support_Services Page 4 of 7 Revision Date OY18/07 JR8741 AT8T Equipment Solutions -Voice CPE Support Services Addendum To Master Agreement D. In the event the problem is anon-Emergency, AT8T shall use reasonable commercial efforts to respond to Customers report of a malfunction by beginning remote diagnosis, as appropriate, within eight (8) business hours and will complete the appropriate repairs as soon as reasonably practical. ATST will artange to replace defective telephone sets and cords by shipping replacements to the customers site, Customer must return the defective equipmentwithin ten (10) days or AT8T shall invoice Customer for the full replacement cost. AT8T reserves the right to inspect all defective equipment and AT8T shall have final determination of the status of such equipment. 6. AT8T MAINTENANCE SERVICE DESCRIPTIONS A. ATST Voice CPE Maintenance Services -Complete. Customer may request maintenance Service twenty-four (24) hours a day, seven (7) days a week by calling AT8T. If Customer's problem is an Emergency, AT8T will use reasonable commercial efforts to respond to Customer's report of a malfunction by beginning remote diagnosis, as appropriate, within two (2) hours for PBX systems and four (4) hours~for key, hybrid or any other system, and will complete the appropriate repairs as soon as reasonably practical; Remote diagnostics require customer provided access line and remote access device on all covered equipment with capabilities. In the event the problem is a non-Emergency, AT8T shall use reasonable commercial efforts to respond to Customer's report of a malfunction by beginning remote diagnosis, as appropriate, within eight (8) business hours and will complete the appropriate repairs as soon as reasonably practical. AT8T will arrange to replace defective telephone sets and cords by shipping replacements to the customers site., Customer must return the defective equipment within ten (10) days or ATST shall invoice Customer for the full replacement cost. ATST reserves the right to inspect all defective equipment and shall have final determination of the status of such equipment. B. ATST Voice CPE Maintenance Services -Essential. Customer may request maintenance Servicetwenty-four (24) hours a day, seven (7) days a week by calling AT8T. If Customers problem is an Emergency, AT8T will use reasonable commercial efforts to respond to Customer's report of a malfunction by beginning remote diagnosis, as appropriate within two (2) business hours for PBX systems and four (4) business hours for key, hybrid dr any other system, and will complete the appropriate repairs as soon as reasonably practical. Remote diagnostics require customer provided access line and remote access device on all covered equipment with capabilities. In the event the problem is anon-Emergency, AT8T shall use reasonable commercial efforts to respond to Customer's report of a malfunction by beginning remote diagnosis, as appropriate, within eight (8) business hours, and will complete the appropriate repairs as soon as reasonably practical. AT8T will arrange to replace defective telephone sets and cords by shipping replacements to the customer's site. Customer must return the defective equipment within _ ten (10) days or AT8T shall invoice Customer for the full replacement cost. ATST reserves the. right to inspect all defective equipment and AT8T shall have final: determination of the status of such equipment. "Business hours" refers to services performed during Normal Business Hours. Any Services performed outside of the Normal Business Hours shall be performed within mutually agreed to time periods. C. ATST Voice CPE Maintenance Services -Dedicated. (i) AT8T will provide technician, Customer Service - Representative, Project Manager, or other agreed upon resource(s)~as set forth herein or within an associated Statement of Work, on an annual basis to perform installation, maintenance; and/or move, add or change activities. (ii) AT8T shall, at its sole discretion, assign either a qualifed AT8T employee or contractor ("Resource") or a combination of both to provide Services to Customer during Normal Business Hours. (iii) Each Resource will be granted time off for lunch and breaks as mandated by any labor agreement, Federal, State, County or City laws that are applicable. Customer must provide adequate office facilities/quarterslstorage for Resource to administer daily responsibilities. (iv) Customer may also purchase optional replacement parts coverage associated with Dedicated. (v) Customer may request maintenance Service twenty-four (24) hours a day, seven (7) days a week by calling AT8T. If Customer's problem is an Emergency, AT8T will use reasonable commercial efforts to respond to Customers report of a malfunction by beginning remote diagnosis, as appropriate within two (2) business hours for PBX systems and four (4) business hours for key, hybrid or any other system, and will complete the appropriate repairs as soon as reasonably practical. Remote diagnostics require customer provided access line and remote access device on all covered equipment with capabilities. Any Services performed outside of the Normal Business Hours shall be performed within mutually agreed to time periods. D. AT8T Voice CPE Maintenance Services -- Custom. Custom provided maintenance shall include the Services as agreed to by Parties as described in the document. 7. OPTIONAL AT8T VOICE CP.E SUPPORT SERVICE PLAN DESCRIPTIONS A. Contact Center Software Support Services Option: If selected on page 2 above, Customer elects to purchase AT8T Software SuppoR Services as additional support to CONFIDENTIAL INFORMATION . This Agreement is for use by authorized employees of the parties hereto only and is not for general distribution within or outside their companies. Addendum_VOice_CPE_Support_Servrces Page 5 of 7 Revision Date 0518/07 JR8741 ATBT EquipmenYSolutions -Voice CPE SuppoR Services Addendum To Master Agreement theselected maintenance plan. The additional support is described below: (i) ATBT's software support services may include preventive and/or remedial maintenance, as required by AT&T or its supplier. The software support services may also include technical telephone consultation and diagnostic assistance, problem origination and expedite resolution. Software support services are typically performed remotely. ATBT may provide -on-site support services as ATBT deems necessary: ATBT's preventive and remedial software support services obligation hereunder do not include, and is not otherwise obligated to provide software releases, updates,' upgrades or maintenance service resulting in Contact Center Software functionality which exceeds that expressly provided in ATBT's or its suppliers' specifications at the time such Software was installed (including Year 2000 functionality). Any software which is at a revision level not supported by the software licensor will be excluded from coverage. (a) Contact Center Software Support Services -Complete. This service option is available with the ATBT Voice CPE Support Services -Complete Maintenance Plan. Customer may request software support service - twenty-four (24) hours a day, seven (7) days a week by calling ATBT. If Customers problem is Severity Level 1 (as described herein),-ATBT shall, within two (2) hours after Customer's notification is logged in at ATBT's Data Services Customer Care Center (DSCC), commence error correction activity from a remote location. In the event ATBT does not respond within two (2) hours to Customers Severity Level 1 (as described herein), the problem will be. escalated. If Customer's problem is a Severity Level 2 or 3 (as described herein), ATBT shall use reasonable efforts, within eight (t3) business hours after Customer's problem is logged in by the DSCC, to commence error correction activity from a remote location. (b) Contact Center Software Support Services -Essential. This service option is available with the ATBT Voice CPE Support Services -Essential Maintenance Plan. Customer may request maintenance service twenty-four (24) hours a day, seven (7) days a week by calling ATBT. If Customers problem is-Severity Level 1 (as described herein), ATBT shall, within two (2) business hours after Customers notificationis logged in at ATBT's DSCC commence error correction activity from a remote location. In the event ATBT does not respond within two (2) business hours, during ATBT's Normal Business Day, to Customer's Sevedty Level t (as described herein), the problem will be escalated. If Customers problem is a Severity Level 2 or 3 (as described herein), ATBT shall use reasonable efforts, within eight (S) business hours, after Customer's problem is logged in by the DSCC, to cgmmence error correction activity from a remote location, during ATBT's Normal Business Day. (ii) Severity Levels Defined (a) Severity Level 1. Application is inoperative; inability to use application materially impacts Customers operations. If a bypass procedure is not utilized, ATBT will continue error correction activity according to selected-maintenance plan or optionally, on a time and materials basis. In addition, ATBT shall provide verbal status reports on Severity Level 1 errors at intervals of no less than twice per day to designated Customer support representative, until a bypass is found. (b) Severity Level 2. Application is usable with limited functions. Error condition is not critical to continuing operation. Customer or ATBT has determined the method of work around for the error condition. (c) Severity Level 3. Application is usable, but a minor problem exists. B. Software Release Subscription Services Option (Applies only to specific Nortel products). Customer elects,to purchase Software Release Subscription Services as described below: (i) Software Release does not include maintenance coverage on Customers CPE. Maintenance coverage - must be~purchased separately. (ii) Software Release Subscription (SRS) provides entitlement to new General Announcement (GA) releases of software as approved for use by ATBT for specified Nortel Networks Enterprise Systems (Nortel) at a fxed price. SRS is anon-transferable, non-refundable contracted service offering, which provides customers access to future major and minor software releases, "like-for-like" with existing customer owned software for the term of the SRS Service Plan. Hardware, labor or maintenance costs associated with any upgrades are not covered and any licenses/software that are added during the term of the SRS Service Plan will incur additional charges. In- accordance with this agreement, all system hardware upgrades,. software upgrades, Moves, Adds, Changes,and repairs must be performed by ATBT. Failure to adhere to this policy will result in additional charges or cancellation of this agreement. (iii) ATBT makes no guarantees as to the number of new software releases that will be released by the manufacturer for the term of the SRS Service Plan. Once ATBT has approved a new software release for general availability, the customer may notify their SalesRepresentative of their desire to upgrade. Failure~to CONFIDENTIAL INFORMATION This Agreement is for use by authorized employees of the parties hereto only and is not for genera! distribution within or outside their companies. Addendum_VOice_CPE_Support Services Page 6 of 7 Revision Date 05/18/07 JR8741 AT&T Equipment Solutions -Voice CPE Support Services Addendum To Master Agreement upgrade to the latest software release may result in incompatibility with new or existing applications. Additional charges will be incurred [o upgrade if software level is not kept at the current level. (iv) ATBT is not otherwise obligated to provide software release information, updates; upgrades or maintenance service resulting in Software functionality which exceeds that expressly provided in ATBT's or its suppliers' specifications at the time such Software was installed (including Year 2000 fuhctionality). Section 3.9, of the Master Agreement (Warranties; Disclaimer of other Warranties) applies to any software subscription by Customer under this Section. 8. AGENCY During the term of this Addendum, Customer will not permit any other person to maintain, repair or modify the CPE or to connect any other equipment. To the extent necessary for ATBT to perform its Services under this Addendum, Customer agrees that ATBT will be Customers Site agent to represent Customer in any dealings with any telephone company or government agency with respect to CPE maintenance provided hereunder. Customer assumes all ongoing responsibility of directory listings, credit cards, system security, billing arrangements and other items not related to Equipment or Services provided by ATBT unless expressly-stated otherwise under this Addendum or some other express written agreement between Customer and ATBT. ~ _ 9. - CHANGE IN EQUIPMENT ATBT will have the right and option of conducting periodic equipment reviews for additions and/or deletions which may have occurred and all service pricing shall be adjusted accordingly. In the event Customer elects to terminate portion(s) or reduce the grade of the maintenance Services provided hereunder, Customer shall be liable for fifty percent (50%) of the fees for the terminated or reduced portion of the maintenance for the remainder of the term of this Addendum plus any non-recoverable costs including, but not limited to, those amounts paid or due and payable to third parties as incurred by - ATBTdirectly in connection with the provisioning of such Equipment and Services for Customer. 10. RENEWAL Unless terminated by either Party upon at least thirty (30) days written notice prior to expiration of the then existing Term, and to avoid Service interruption, the [hen current Term of any services included in this Addendum shall automatically extend for consecutive one (1) year Term(s) at ATBT's then current pricing for such Services. Upon extension of any Maintenance or Service Plan, the services provided by ATBT shall remain unchanged (except with respect to pricing) unless both Parties agree in writing to any changes at the time of extension. ATBT may only increase the price~of the Maintenance or Service Plans provided herein at: (i) the expiration of the initial term; (ii) commencement .of any subsequent extension term; or (iii) the time Equipment is changed, upgraded or added to this Addendum. ATBT will provide Customer with a 30 day notice of such increases. 11. AT8T CAPITAL SERVICES ("ATBT-CS") FINANCING OPTION [Individual's initials on behalf of Customer] Customer elects to fnance the Total Purchase Price through ATBT-CS. Customer hereby requests that ATBT invoice ATBT-CS and arrange for payment as described below: ATBT will invoice Customer in care of ATBT=CS for 100% of the Total Purchase Price upon Cutover (as_ defined in the Agreement) and the invoice shall be paid promptly after its delivery to ATBT-CS, provided that all required lease documentation has been properly executed and received by ATBT-CS. If all lease documentation is not-executed and received by ATBT-CS Customer agrees and will pay the Total Purchase Price to ATBT upon receipt of an invoice. END OF DOCUMENT - CONFIDENTIAL INFORMATION This Agreement is for use 6y authorized employees of the parties hereto only and is not for general distribution within or outside their companies. Addendum_VOice_CPE_Support Services Page 7 of 7 ~ Revision Date 05/18/07 JR8741