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HomeMy WebLinkAboutNORTEL COMMUNICATIONS SYSTEMS, INC - telecommunications system at Central Library 6/17/96 - 1996-06-17Council/Agency Meeting Held: �g J1 Deferred/Continued to: proved ❑ Co diti nally Approved ❑ Denied IM City Clerk's Sigkure Council Meeting Date: 06/17/96 Department ID Number; FD 96-008 REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administr PREPARED BY: MICHAEL P. DOLDER, Fire Chief SUBJECT: REQUEST FOR APPROVALt OF CONTRACT TO REPLACE' DAMAGED TELEPHONE SYSTEM AT CENTRAL LIBRARY Statement of Issue, Funding Source, Recommended Action, Alternative Action, Analysis, Environmental Status, Attachment(s) Statement of Issue: Staff is seeking Council approval of Nortel Communications Systems (Nortel) contract to provide replacement of the Northern Telecom Meridian 1 telephone system and related equipment located at the Central Library. Funding Source: Funding was previously approved by the City Council on March 4, 1996 on Request for Council Action FD 96-002 (Attachment 1). Recommended Action: Approve contract with Settlement Committee recommendations and proposed amendment by Nortel. Alternative Action(s): 1. Approve contract with Settlement Committee recommendations, but reject proposed amendment. 2. Reject contract with Settlement Committee recommendations. 3. Accept contract without Settlement Committee recommendations. Analysis: On July 19, 1995, an integral component of the City telephone system located at the Central Library was damaged by T.E.P.S. Cable Company, a contractor for Paragon Cable. The telephone system is a crucial node of the City's telecommunications network, serving not only the Central Library, but also serving fire stations and police.substations . On March 4, 1996, the City Council approved a General Fund appropriation of $120,386 to replace the damaged telephone equipment. The City Council also directed staff to proceed with litigation against Paragon Cable (Attachment 1). Since the appropriation, staff has been negotiating a purchase contract with Nortel, the sole manufacturer of the equipment. .0— REQUEST FOR COUNC ACTION 999ting Date: 06/17/96 SUBJECT: REQUEST FOR APPROVAL OF CONTRACT TO REPLACE DAMAGED TELEPHONE SYSTEM AT CENTRAL LIBRARY FD 96-008 The current contract price of $120,386 will expire on June 28, 1996. Time is of the essence since a contract entered into after July 1, 1996 will incur a 20% cost increase. Further, the existing system has failed at least four (4) times since the water damage in July 1995 (two of these times were within one week of each other in May and June, 1996). The situation at this time is critical and a danger to public health and safety. The Settlement Committee considered five (5) issues raised by Nortel and made the following recommendations: 1. Accept the request by Nortel to limit their liability to bodily injury and tangible property damage for indemnity and general liability insurance purposes (paragraphs 8 and 10). 2. Accept a complete waiver of the standard professional liability insurance requirements (Certificate of Insurance indicating coverage to $500,000). 3. Accept a waiver of the standard requirements of original Certificates of Insurance and a waiver of the 30-day cancellation clause (paragraphs 10 and 11). 4. Accept a complete limitation of liability for any damages caused by City (paragraph 32). 5. Reject a limitation of all liability to the price of the system and/or services. The standard City contract would not include this limitation. The City Attorney's Office contacted Nortel with the recommendations of the Settlement Committee. Nortel suggested,a compromise to the limitation of liability which the 1vnCT,E1-`•5 Settlement Committee did not accept (Item No. 5 above). T suggested compromise clause would read as follows (the deleted language was originally rejected by the Settlement Committee). Limitation on Liability te- the (Regardless of the legal or equitable basis of any claim or of actual notice, neither seller nor seller's suppliers shall be liable for (a) any incidental, indirect, special or consequential loss or damages, or (b) any damages relating to a claim made against customer by a third party except for indemnified claims described in Section 11. These limitations shall remain in full force and effect through any renewal of maintenance service provided for in this agreement. The proposed Nortel contract (Attachment 2) includes the Settlement Committee's accepted recommendations (items 14 above). If Council approves recommended staff action, the above clause would be incorporated into the final contract. FD96-008.DOC -2- 06/06/96 3:35 PM REQUEST FOR COUNCIIACTION 9eeting Date: 06/17/96 SUBJECT: REQUEST FOR APPROVAL OF CONTRACT TO REPLACE DAMAGED TELEPHONE SYSTEM AT CENTRAL LIBRARY FD 96-008 Request for Council Action FD 96-002. 2. Nortel Communications Systems Contract. FD96-008.DOC -3- 06/06/96 6:49 PM 0 Ej AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND NORTEL COMMUNICATIONS SYSTEMS, INC. FOR TELECOMMUNICATION SYSTEM THIS AGREEMENT, made and entered into this 2itAIN day of 19CLL, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY", and NORTEL COMMUNICATIONS SYSTEMS, INC. ("NORTEL"), aIC�GfI�`e, corporation, hereinafter referred to as "CONTRACTOR." WHEREAS, CITY desires to engage the services of a telecommunications systems contractor to install such system at the Central Library, at 7111 Talbert Avenue, Huntington Beach, CA 92646; and Pursuant to documentation on file in the office of the City Clerk, the provisions of HBMC Chapter 3.03 relating to procurement of professional service contracts has been complied with; and CONTRACTOR has been selected to perform said services, NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows: WORK STATEMENT CONTRACTOR shall provide all services as described in the Scope of Work Annex, attached hereto as Exhibit "A" and incorporated into this Agreement by this reference. Said services shall sometimes hereinafter be referred to as "PROJECT." CONTRACTOR hereby designates lemon Ha -Hz �� , who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator ("Telecommunications Coordinator") to work directly with CONTRACTOR in the performance of this Agreement. J MPA/nortel/WO/96 3. TIME OF PERFORMANCE CONTRACTOR will use all commercially reasonable efforts in performance of this Agreement. The services of the CONTRACTOR are to commence as soon as practicable after the execution of this Agreement and all tasks specified in Exhibit "A" shall be completed according to the schedule attached hereto as Exhibit "B" and incorporated herein by reference. These times may be extended with the written permission of the CITY. This schedule may be amended to benefit the PROJECT if mutually agreed by the CITY and CONTRACTOR. 4. COMPENSATION In consideration of the performance of the telecommunication services described herein, CITY agrees to pay CONTRACTOR a fee not to exceed One Hundred Seventeen Thousand, Four Hundred and Forty -Five Dollars ($117,445), pursuant to the payment schedule as described in Exhibit "C" attached hereto and incorporated herein by reference. 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A," or changes in the scope of services described in Exhibit "A," CONTRACTOR will undertake such work after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. No change shall be allowed if the cumulative effort of such change together with all previously approved changes to the scope of service decreases the Agreement fee by more than twenty (20) percent. Any change involving deletion of Exhibit "D" equipment previously delivered to the installation site shall require the CITY to pay to CONTRACTOR a restocking charge equal to ten (10) percent of the price for such equipment. As an exception to the aforementioned terms, restocking charges will not be applied to the CITY's return of the telephone instruments to CONTRACTOR. 2 JM P/k/norteV5/30l96 6. METHOD OF PAYMENT A. CITY agrees to pay CONTRACTOR the price of the Equipment identified in Exhibit "D." CITY shall pay CONTRACTOR twenty-five percent (25%) of the price of the equipment within thirty (30) days of the effective date of this Agreement. The balance of the price shall be paid as described in the payment terms described in Exhibit "C" of this Agreement. B. Delivery of work product: A copy of every technical memo and report prepared by CONTRACTOR shall be submitted to the CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by CITY shall be deemed accepted. C. The CONTRACTOR shall submit to the CITY a milestone acceptance form (MAF) and invoice for each progress payment due in accordance with Exhibit "C". Such MAF shall: 1) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of the CONTRACTOR's firm that the work has been performed in accordance with the provisions of this Agreement; and Upon submission of any such invoice and MAF, if CITY is satisfied that CONTRACTOR is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If the CITY does not approve an invoice, CITY shall notify CONTRACTOR in writing of the reasons for non -approval, within seven (7) calendar days of receipt of the invoice, and the schedule of performance set forth in Exhibit "B" shall be 3 JMP/k/noriel/5/31 /96 • suspended until the parties agree that past performance by CONTRACTOR is in, or has been brought into compliance, or until this Agreement is terminated as provided herein. D. Any billings for job change orders authorized by CITY shall be invoiced separately to the CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the job change order requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONTRACTOR agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notices, calculations, maps and other documents, shall be turned over to CITY upon termination of this Agreement or upon PROJECT completion, whichever shall occur first. In the event this Agreement is terminated, said materials may be used by CITY in the completion of PROJECT or as it otherwise sees fit. Title to said materials shall pass to the CITY upon payment of fees determined to be earned by CONTRACTOR to the point of termination or completion of the PROJECT, whichever is applicable. CONTRACTOR shall be entitled to retain copies of all data prepared hereunder. 8. INDEMNIFICATION AND HOLD HARMLESS CONTRACTOR shall indemnify and save and hold harmless CITY, its officers and employees, from any and all liability, including any claim of liability and any and all losses or costs arising out of bodily injury or damage to tangible property due to the negligent performance of this Agreement by CONTRACTOR, its officers or employees. 9. WORKERS COMPENSATION CONTRACTOR shall comply with all of the provisions of the Workers Compensation Insurance and Safety Acts of the State of California, the applicable provisions 4 JMPlkhtortel/6/dVDB of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONTRACTOR under this Agreement. CONTRACTOR shall obtain and furnish evidence to CITY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease, policy limit. 10. INSURANCE In addition to the workers compensation insurance and CONTRACTOR's covenant to indemnify CITY, CONTRACTOR shall obtain the following insurance covering the PROJECT: A. General Liability Insurance A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify CONTRACTOR, its officers, agents and employees, while acting within the scope of their duties, against any and all claims for bodily injury or damage to tangible personal property due to negligence of the CONTRACTOR arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. if coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name CITY, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONTRACTOR's insurance shall be primary. 5 JMP/Wnortel/5/30196 11. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, CONTRACTOR shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled or modified without thirty (30) days prior written notice of CITY. CONTRACTOR shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. The requirement of 30 day written notice of cancellation on the certificates and endorsements under Section I (C)(4) of Resolution No. 6277 is hereby waived. . The requirement for carving the foregoing insurance coverages shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under the Agreement. CONTRACTOR shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of CONTRACTOR's insurance policies, naming the CITY, its officers and employees as Additional Insureds shall be provided to the City Attorney for approval prior to any payment hereunder. The certificate of insurance for general liability shall show the CITY, its agents, officers and employees as additional insured. 12. INDEPENDENT CONTRACTOR CONTRACTOR is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONTRACTOR shall secure at its expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONTRACTOR and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 6 J MP!Wnortefl6J4l96 13. MATERIAL BREACH All work required hereunder shall be performed in a good and workmanlike manner. If any material breach of this Agreement shall continue for more than 30 days after receipt by the breaching party of written notice from the aggrieved party stating in reasonable detail the nature of the breach, then the aggrieved party shall be entitled to avail itself, cumulatively, of any and all remedies available at law or equity, including termination hereof, except as specifically limited elsewhere in this Agreement. If CITY is the aggrieved party then CITY may suspend payment of any sums due hereunder for so long as CONTRACTOR's breach continues uncorrected. if CONTRACTOR is the aggrieved party then CONTRACTOR may suspend performance of any or all of its obligations hereunder for so long as CITY's breach continues uncorrected. A condition precedent to any legal action by either party to enforce or interpret any right or obligation under this Agreement shall be the receipt by the other party of notice, at least 30 days prior to such action, and which states with reasonable particularity the claimed breach or grievance. 14. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the supervisory work hereunder shall not be delegated by CONTRACTOR to any other person or entity without the consent of CITY. 15. COPYRIGHTS/PATENTS CONTRACTOR shall not apply for a patent or copyright on any item or material produced as a result of this Agreement, as set forth in 41 CFR 1-9.1. 16. CITY EMPLOYEES AND OFFICIALS CONTRACTOR shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the Califomia Govemment Code. 7 JMP/Wrx)r1eV614W 17. NOTICES Any notices or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to CONTRACTOR's agent (as designated in Section 1 hereinabove) or to CITY's Fire Chief as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 ATTN: 18. IMMIGRATION TO CONTRACTOR: Nortel Communications Systems, Inc. 2400 Camino Ramon, Suite 100 San Ramon, CA 9458 ATTN: Ceti m ii� I SCii�7 CONTRACTOR SHALL be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 19. ACCEPTANCE Upon completion of installation, acceptance testing will be performed in three phases, as follows: 1) CONTRACTOR'S standard test procedures will be performed for CITY Telecommunications Coordinator, verifying operation "cut over" of all components of the installed telecommunications system at each site. 2) During the first business week following installation of each site, CITY Telecommunications Coordinator will perform end user testing to determine that the system performs in a satisfactory manner according to the manufacturer's installation specifications and the standard practices of the telecommunications industry. 8 JMP/Wnort9V614196 3) Following satisfactory performance of the end user test, user reliability testing will be performed by the CITY Telecommunication Coordinator, with the assistance of CONTRACTOR, for a period of three (3) consecutive business weeks. During this period, end user will operate the system for their ordinary needs. Each telecommunication system will be deemed to have satisfactorily passed the reliability test if, during this period, the equipment and the software operate free from major failure. For purposes of this paragraph, major failure is defined as no dial tone, inability to make outgoing calls or inability to receive incoming calls for ten (10) percent or more of any telephone sets supported by any one system, with the exception of police, fire, lifeguard, public works and emergency services departments as to which there will be no minimum. If a system fails to pass any or all phases of the acceptance testing, CONTRACTOR shall correct the deficiency(ies) at its expense. The applicable phase testing shall be repeated until all three phases are satisfactorily passed. 20. RISK OF LOSS Risk of loss to the switch components of the equipment itemized in Exhibit "D" shall pass to CITY upon physical delivery of each such component to its respective switch room by CONTRACTOR. General risk of loss to any other portion of each system shall pass upon deliver of such portion to the CITY premises. After general risk of loss has passed to CITY, CONTRACTOR shall continue to be liable for (A) equipment shortages of terminal equipment until installation (contingent upon the CITY providing to CONTRACTOR a secured location) and/or (B) damage to losses to the equipment or scope of work due to CONTRACTOR'S negligence. Title to the equipment shall not pass to CITY until CONTRACTOR has been paid all amounts due for the equipment under this Agreement 21. SHIPPING The Exhibit "D" equipment and system software as described in Exhibit "E" shall be shipped by CONTRACTOR to CITY in accordance with the delivery schedule specified in 9 JMP/k/norteV6/4M Exhibit "B." CONTRACTOR will provide ten day notice to CITY of the scheduled shipment date for the switch component of each system. Freight expenses for said Equipment will be paid by CONTRACTOR. If the CITY rejects or cancels for good cause any product, CONTRACTOR shall bear all shipping charges relating to such product. If CITY has already paid CONTRACTOR for such product, CONTRACTOR shall refund such payment to CITY. 22. MAINTENANCE CONTRACTOR shall perform maintenance services on the Equipment under the terms and conditions of this Agreement and service contract automatic renewal dated May 9, 1995 and all subsequent renewals. 23. NONDISCLOSURE Both parties acknowledge that information made available pursuant to this Agreement is confidential and proprietary to the other party and both parties agree to restrict the disclosure of such confidential and proprietary information to only those individuals who require the information to perform pursuant to the terms of this Agreement. 24. INSTALLATION SERVICES CONTRACTOR shall be responsible for unpacking and placement of the Equipment at the installation site. Installation of the Equipment to be installed will be performed by the CONTRACTOR at the prices specified in Exhibit "C," and with minimal disruption to the CITY'S day-to-day business operations. 25. FORCE MAJEURE Neither party shall be liable for delays, loss, damages or other consequences of acts, omissions or events beyond a party's control and which may not be overcome by due diligence, or caused by strikes or labor strife and unrest. 26. DOCUMENTATION CONTRACTOR shall provide CITY documentation to support the operations of the Equipment and Software in accordance with the Agreement without charge. CONTRACTOR grants CITY the right to duplicate such documentation for its internal use only. 10 JMP/WnorteV6l4M • • 27. WARRANTY A. CONTRACTOR warrants that CONTRACTOR possess good and clear title to said Equipment and there are no pending liens, claims or encumbrances whatsoever against said Equipment. B. CONTRACTOR warrants that as of the date of shipment that: the Equipment incorporates all current manufactures' required engineering changes released to the general public; the Equipment qualifies for maintenance services by the manufacturers. C. CONTRACTOR warrants that the Equipment will be free from defects in material and workmanship and will conform to specifications for a period of one (1) year commencing at network cutover date. D. In the event any component part of the Equipment is or becomes defective by reason of material or workmanship during said period, and the CITY immediately notifies CONTRACTOR in writing of such defect, CONTRACTOR shall repair or replace the Equipment or component at no charge to the CITY. All replaced parts shall become the property of CONTRACTOR on an exchange basis. This warrant does not extend to any equipment that has been subject to misuse, neglect, accident, improper or unapproved installation, acts of God, power failure, or to equipment to which repairs or modifications have been performed by persons other than CONTRACTOR'S own or authorized service personnel, unless such repairs by others were performed with the written consent of CONTRACTOR. E. CONTRACTOR warrants that all services provided pursuant to this Agreement will be performed in a workmanlike manner in accordance with reasonable commercial standards. CONTRACTOR shall correct all services not performed if brought to CONTRACTOR'S attention in writing within the warranty period. F. CONTRACTOR warrants for a period of 365 days following receipt that the documentation provided pursuant to this Agreement shall be substantially free from errors. CONTRACTOR shall correct any document errors brought to its attention during the 30 day period following notification of found errors. 11 JMP1k norteUM96 G. The warranties and remedies set forth above constitute the only warranties with respect to the system and the CITY'S exclusive remedies if such warranties are breached. The stated warranties are in lieu of all other warranties, written or oral, statutory, express or implied, Including, without limitation thereto, the warranty of merchantability and the warranty of fitness for a particular purpose. CONTRACTOR shall not be liable for any incidental or consequential damages of any nature or any reason either before or after cutover. 28. EXCUSABLE DELAY A. Neither part shall be liable when delays arise out of a cause beyond the control and without the fault or negligence of either party. Such causes may include, but are not restricted to acts of God or the public enemy, government action or failure to act, fires, floods, earthquakes, epidemics, quarantine restrictions, strikes, freight embargoes, war, civil disturbances, work stoppage, power failures, laws, regulations, ordinances, acts of unusually severe weather. In such event, the party affected shall be excused from such performance on a day -for -day basis for the extent of such interference (and the other party shall likewise be excused from performance of its obligations on a day -for -day basis to the extent such parry's obligations relate to the performance so interfered with). B. CONTRACTOR delay caused by the delays of subcontractors of CONTRACTOR shall be deemed excusable if the subcontractor's delay is beyond the control and without the fault or negligence of the subcontractor as described in this section. C. The party who has been affected by an excusable delay shall immediately give notice to the other party of such circumstances. 29. DISASTER RECOVERY Disaster recovery will be determined by the terms of the existing maintenance agreement between the,parties for the location designated by this Agreement. A. In the event of a disaster or accident that impairs operation of the Equipment purchased under this Agreement, the CONTRACTOR shall use its best efforts to 12 JMP/1lnorteV6/4/96 help the CITY restore operations as quickly as possible. Such services will be provided at the CONTRACTOR'S then prevailing rates. B. CONTRACTOR will provide Disaster Recovery services to Fire, Police, Lifeguard and Public Works sites first, and will prioritize remaining CITY sites in accordance with the Nortel Communications Systems, Inc. Disaster Recovery Plan attached hereto as Exhibit "F" and incorporated by reference. C. CONTRACTOR will provide name and telephone numbers (home and office) of emergency contacts to at cutover. 30. CONTRACTOR PERSONNEL CITY shall have the right to require in writing the CONTRACTOR to replace any of the CONTRACTOR'S on -site personnel in the event that the CITY reasonably determines such person is disruptive to the Project. The replacement shall be selected by the CONTRACTOR and approved by the CITY. The CONTRACTOR shall have up to five (5) days to make a replacement. 31. GRANT OF LICENSE CONTRACTOR shall grant to CITY a license to use certain computer software embodied in or associated with the hardware. The hardware and software are itemized in Exhibit "D". The software is provided to CITY pursuant to the provisions of the Software Sublicense, attached hereto as Exhibit "E". 32. CONTRACTOR'S DAMAGE LIABILITY Notwithstanding any other provisions of this Agreement, CONTRACTOR shall in no event be liable for any damages caused by the CITY'S failure to perform the CITY'S responsibilities or for any incidental, special or consequential damages (even if CONTRACTOR has been advised of the possibility of such loss or damage. 13 JMP/WnorteV6/5196 33. WAIVER No action or inaction by either party shall be interpreted as a 'wavier" and no waiver shall be valid unless it is in writing and signed by the City Administrator. 34. ARBITRATION Any controversy or claim arising out of or relating to this Agreement or the breach thereof, shall be settled in accordance with the laws of the State of California. 35. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONTRACTOR and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONTRACTOR understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONTRACTOR. 36. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terns and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. REST OF PAGE NOT USED 14 JMPlk/nortel/6/4J96 33. WAIVERS No action or inaction by either party shall be interpreted as a "wavier" and no waiver shall be valid unless it is in writing and signed by the City Administrator. 34. ARBITRATION Any controversy or claim arising out of or relating to this Agreement or the breach thereof, shall be settled in accordance with the laws of the State of California. 35. LEGAL SERVICE BC NTRACTING PROHIBITED CONTRACTOR and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONTRACTOR understands that pursuant to Huntington Beach Gity Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONTRACTOR. 36. ATTQRNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. 37. LIMITATION ON LIABILITY Regardless of the legal or equitable basis of any claim or of actual notice, neither seller nor seller's suppliers shall be liable for (a) any incidental, indirect, special or consequential loss or damages, or (b) any damages relating to a claim made against customer by a third party except for indemnified claims described in Section 11. These limitations shall remain in full force and effect through any renewal of maintenance and service provided for in this agreement. 14 JMPlk/rwReV6r2OM 38. ENTIRETY The foregoing, and Exhibits "A" through °F" attached hereto, set forth the entire Agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. NORTEL COMMUNICATIONS SYSTEMS, INC. By: print name ITS: (circle one) C tNice President f � eM�tz t�r,�rs By: L� print name ITS: (circle one) Secretary/Chief Financial Officer) Mr ATTEST: G City Clerk GC11tM%A1Cn A Ktn A 0DDn►1cn- CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California Mayor APPROVED AS TO FORM: �-� ` b/LylYs- y��R� � City Attorney , f INITIATED AND APPROVED: Fire Chief 15 JMP/k/nortel/6AW Approval Matrix -West Sales arrd Sales Related Transactions NORTEI_ Communications System VP 13Ir1 Mgr 1 VP MCS EVP VP G.M.! Business Sr Mgr Sr Mgr Sales Sr. Mgr. Standard Bids, Proposals, & JCOS futon Standard 91ds, Proposals & JCOs Presidnt^ Sales President Finance V^P_Sales- Q grations' r QD Sales J_Su�prt Cartt Admin > tot.1 <10M <5M <5M <1M <I _ _ <5_00K e500K NIA_ MIA > 10M _ _ <_1_DM .--�-y52.5M 4 <2.5M <SOOK — <504K —< 250K- V--TO--- --NJA -- N!_A Consulting Agreements > 2501C T< 75K y c75K <0 ^= 0 — _---=-=Q =- ___----=U - �L- _ _ 4=-0 — -_-� —NfA 1 Agreements w1NT and Affiliates > 10M <10M c5M <5M 0 <1M <140K 0 <1M _ NIA Ag rtts, P.O.'s wish ------- Non- Vendors - - - _ >5M - <5M S< 500K <500K __ tf ____�5250K -- 100K 0 <250K _- N/A -- Job Change order Credits/No Charge_ _ - _> 10M y-- <300K <250K --- <250K_ _ <50K550K - <$QK 0 NIA N!A ' Service Contracts "Hen Standard Defined as: 1 - With and Inestimable Cost irnpa!f or w 2 - ProposalslContracts with std gross margin % at or less than !(Includes special pricing ir. contracts) Upgrades 38.0% Norstar 31.0% CSO 45.5% Option 11-81 30.0% Maint 55.0% St-100 24.014. Wiring 25-0y 'Mail 40.0°% Other 30.0% President MUST approve any proposal With a standard gross margin less than 20% t. CeJury _ 3 •Standard 3td party product tiering 4 - stem Integrtion requirements Contract -- Standard Contracts > 10M <10M <SM Non -Standard Contracts -Y - > 10M a 10M <5M No contract will be accepted by NORTEL Communications Syalems Without Excluslon of Consequential Damages Without Exclusion of Implied Warranties • VYith any change to NT's or any other Software License Note: Any contract %pith consequential damage liablfitV must be approved by the MCS EVP Sales. Any contract for products not past general reJease or requiring custom R&D trust have VP PLM approval through a Corporate Approval Regnest. Corr racta for complex call ceriers must be approved by M. Carnp. • All Non -Standard Terms & Conditions Must be Approved by Legal - Nan -Standard Paymerd Terms Require Finance Approval • Fleid Finance must approve all proposalsla-Forms over $250K and all credits over $25K. • Sales VPVGM's nay sign rip to 3% liquidated damages. Up to 5% goea to NCS President - <51VI c50OK - <a0OK'---<250' NIA :5500K---c50t6K-� NIA <250K <250K 1Non-Standard margins are delined as being 9% below tho target lcr accelorationMecelcration [or Sales Rops in Iho Sales comp pianr except as noted above. Revised VXV96 PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF HUNTINGTON BE ("CUSTOMER") SCOPE OF WORK ANNEX NORTEL shall: • Install the Hardware and Software listed in Annexes 1 and 2 at the following location: 7111 Talbert Avenue Huntington Beach, CA 92648 • Provide and install 64 digital ports for connection to existing digital sets. • Provide and install the following trunk or circuit ports to interface to the carriers and existing network: 35 COT 3 T-1 • Use existing database to program Option 61C. Any new Database changes will be provided at an additional charge via Job Change Order. • Provide and install 48 analog ports for use with customer provided analog sets, modems or fax machines. • Provide and install IPC 300 modem for remote maintenance. • Provide and install earthquake bracing. • Provide and insti ill overhead cable kit. • Provide and install a 8 port/11 hour voice mail system_ • Remove existing Option 61 system for return to Nortel per Meridian Select Marketing Program terms and conditions. • Provide cutover coverage for 1 st day of service. S9603-053 EXHIBIT A SS/022492 0001/SOW Annear, Page I of 2 PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF HUNI'INGTCON REACH ("CUSTOMER") SCOPE OF WORK ANNEX (Continued) CUSTOMER shall: • Provide access (conduits, trays, concrete bores) for all cabling to be completed other than from the switch to the MDF • Provide cable records with information on cable number, floor plan reference, riser/distri- bution pair, etc. • Provide equipment rooms which meet the NORTEL-supplied environmental considerations • Provide the following equipment: Music -on -Hold. Source UPS System CSU,s All Telephone sets and other Peripheral equipment not described in Annex 1. S9603-033 EXHIBIT A SS1022492 0001/SOW Annex, Page 2 of 2 • PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. (" NORTEL") PROJECT SCHEDULE ANNEX (PBX SYSTEM) The following is a schedule of dates applicable to the installation of the System, and a list of some key responsibilities for actions necessary to meet those dates. THIS SCHEDULE IS SUBJECT TO AND DEPENDENT UPON NORTEL AND CUSTOMER COORDINATING THEIR EFFORTS TO MEET EACH DATE. FAELURE TO MEET ANY DATE MAY CAUSE A DELAY IN OTHER DATES AND THE SCHEDULE AS A WHOLE. A. Initial Customer meeting to discuss project plan and database design, 04/15/96 B. Customer shall provide 43tters of agency to each appropriate telephone operating company requesting those companies to accrp[ NORTEL as the Customer's agent for matters pertaining to the installation of the System. - NIA C. Customer shall provide floorplans with locations of station sets clearly marked. Each location shall be individually numbered. NIA D. NORTEL shall specify the environmentals, Power and physical space requirements for the room where the switch component of the Hardware will be located ("the Switchroom"). NIA E. Begin database collection. N/A F. Complete database collection. N/A G. Customer shall have the installation Site available to begin cabling. All requirements for access such as boring, conduits, raceways, trenching, and other rights of way must be complete. N/A H. Customer shall have the Switchroom complete and available in accordance %i h the environmental standards provided. Commercial power must be available as well as ground and air conditioning. NIA 1. Final Date for System cod station level database changes. Customer must sign off on collected database. 04/30196 J . Final date for Hardware modifications ("Firm Configuration Dale"). 04/30196 K. NORTEL shall deliver the switch component of the Hardware to the Site and move it to the Switch- 05/03/96 room. L. Customer shall provide detailed cable records showing each pair oat the Main Distribotion Frame ("MDF ') and which pair NORTEL should use for all sets noted on the floorplans (if NORTEL is using existing cable). N/A M. The. final Installation of the Hardware and Software will commence at 5:01pm on this date. 05/05/96 N. Completion of instullation will be on this date. 05/05/96 This date schedule is contingent upon Customer signing this Agreement and providing requested credit information by March 29, 1996, Changes to this schedule may result in additional charges to the Customer and MUST be mutually agreed to by both parties. S9603.053 SS/030795 0001/ProjSS Annex EXHIBIT B PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF HU�i ITON_BEACH ("CUSTOMER") PAYMENT SCHEDULE ANNEX (SYSTEIID The Price shall be due as follows: Event 25% of the Price within thirty (30) days of the effective date of this Agreement. 75% of the Price within thirty (30) days of the date all items of the Hardware and Software have been installed (the "Completion of Installation"). S9603-053 SS/022492 EXHIBIT C Amount $29,361.00 (25%) $88,084.00 (75%) 0001/PSS Annex 0 • PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") QTY OF HUNTINGTON _BEACH I ("CUSTOMER") HARDWARE/SOFTWARE ANNEX 0 Cabled Smtions 0 Prewires Q.uenIity Equip meat Cilde DescriRURR 1 SY1016A MERIDIAN 1 OPTION 61C SYSTEM AC I NT8D21 AB RINGING GENERATOR AC 1 NT8D64CC EARTHQUAKE BRACING KIT (4 MOD COL) 1 NT8D63AA OVERHEAD CABLE TRAY KIT 1 QPC414 NETWORK CARD 1 NT8D46A] SYS MONITOR TO UPS(BEST) CABLE 45 FT 1 N72K08GH35 M2008 STANDARD BUSINESS W/DISPLAY ASH 1 AS 1182 PRE-PRINTED FEATURE KEY CAP PKG I AS1082 MERIDIAN MODULAR TELEPHONE USER GUIDE 1 NT8D93AJ 2 PORT SDI VO TO DTE/DCE CABLE 16F F 2 NT8D93A'W 2 PORT SDI I/O TO DTFJDCE CABLE 48FT 1 NTIR03E V EXTENSION CABLE, 25 PIN D-SUB 2 AS 1061 PRI PACKAGE 2 NT61)80A$ MULTI -PURPOSE SERIAL DATA LINK 1 SY7020A MM MOD EC 4-24 PT 11-100 HR AC 1 AS7091 VP8 CARD - FLEXMLE ASSIGNMENT 6 F0741311 MERIDIAN MAIL VOICE MSG USER GUIDE 4 NT8D02FA DIGITAL LINE CARD 3 NTBD09AK ANALOG MESSAGE WArTING LINE CARD 3 NT8D15AK E&M TRUNK CARD 5 NT8D14BB UNIVERSAL TRUNK CARD 1 NT016AB DIGITONE RECEIVER CARD 2 NT6D66D.A 48 MBYTE CALL PROCESSOR CARD 1 NT8D73A1D INTER -CABINET NETWORK CABLE 6 FT 1 AS7013 MM SINGLE TERMINAL ACCESS PACKAGE 2 NTSD85BS NETWORK TO PE CABLE 2 FT 2 NT8D79X3 PRI/DTI TO CLOCK CONTROLLER CABLE 2 FT 2 NT8D79A13 PRJ/DTI TO CLOCK CONTROLLER CABLE 6 FT 1 NT8D91AF NETWORK TO CONTROLLER CABLE 10 FT 8 NTND27AB MSDL TO 1/0 PANEL CABLE 6 FT 1 NTND26AA MSDL DCHI INTERFACE CABLE 6FT 2 NT9D18A.% MODULE SIDE COVER 2 A0383526 DEC 520 TERMINAL 1 IPC30OF REMOTE MAINT MODEM 4 NTND26AA MSDL TO CABLE 1 NTSM04TA01011 C COOK 4 CHANNEL ANNOUNCER 1 93024 EPS ON FX 870 PRINTER 1 78210 SERIAL INTERFACE CARD S9603-053 SS/022493 0001/H/S Annex, Page 1 of 2 EXHIBIT D PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") _CITY OF HUNnNCITON REAM ("CUSTOMER") HARDWAREISOFTWARE ANNEX (Continued) The features and serviG-,s which the CUSTOMER shall have available at Cutover are listed below and shall operate substantially as those features are described, where applicable, in the "Features and Services Description" portion of Northern Telecom Practices, a copy of which shall be delivered with the System. The functional description and manner of performance of such features and service inay change from time to time as the result of corrections or improvements. Included in this Agreement is Customer's Right To Use ("RTU") Northern Telecom Software up to 0 Terminal Numbers (TVs"), 8 Meridian Mail ports and N/A Digital Subscriber Loops ("DSLs"). Expansion beyond the s.peci>=ied level may require payment of additional RTU fees. Ouantity qul eat -Code Description 3 5W0000G RTU/MEMIAN 1 RELEASE 21 BASE S/W i SWO029A RTU/FAST TDS 3 SWO050B RTU/NETWORKING 3 SWO051B RTUASDN NETWORKWG 3 SWO052C RTU/PRIVATE ISDN NETWORKING 3 SWO059B RTU/NETWORK MESSAGE SERVICES 1 SW0221C RTU/ACD&IESSAGE PROCESSING 1 SW7000F RTU/MERIDIAN MAIL RE1 10 BASE SW 1 SW7008 RTU/NETWORK MESSAGE SERV SOFTWARE 8 SW7063 RTU/MM FULL SERV PORT LICENSE FEE 2 SW0221C RTU/ACD MESSAGE PROCESSING S9603.053 SS/022493 0001/H/S Annex, Page 2 of 2 EXHIBIT D rttnatishom tolocum ADDENDUM A MERIDIAN SOFTWARE LICENSE NORTHERN TELECOM INC. ("NTI") TELECOMMUNICATIONS PRODUCTS THIS LEGAL DOCUMENT IS A LICENSE AGREEMENT ("LICENSE") BETWEEN YOU, THE END -USER ("CUSTOMER") AND NORTHERN TELECOM INC. ("NTI"). BY OPENING THE SEALED DISK PACKAGE WHICH CONTAINS THE SOFTWARE DIGSKETTE(S), OR BY EXECUTING A CONTRACT FOR PURCHASE OF A SYSTEM WHICH INCORPORATES THIS USER SOFTWARE AGREEMEWr, YOU, THE CUSTOMER, AGREE TO BE BOUND BY THE TERMS OF THIS LICENSE. Subject to tine tams homealtar $ot forti.")p%W to CUSTOMER anchor telseeeatattraa, with a 'need to kttow,' a personal. 000tscivavwe beease (1) to Usti anaie Licensed SCAwars, propneuty to NTI cc its supphars. eootsined ar an imspal Part of the F waive; and R) to inatalt and use each irom of Liemeed Software not an. ietegrai part of the lisrdwate; and 0) to use the associated dociunputioa. CUSTOMpL is gr�nt aed no title or Owner thip rights, in or to the Lioeascd Software, is whole Or to pan, and CUSTOMER acknowledges that title to and all aapysigitu. poitnts, trade secrets and/or any other iotallocnW property nShtf to and in all such Uac& ed SoRwore sad aesoeiued dociuma ixiott are and shot ratatain tho property of NTI -&or Nil'. "gers. The right to use Limand Software may be sssirihyad by a me me of ttaaas of cituotu based upon rtmbet of liana, etllnbw of ports, number of terminal numbars amped, number of uscrx, is home uthAsr ttieaetnC. Fapaariaa beynod the specified "a level may require payment of so iummesul o}harge at another ticeam fee. NTI considers the Ucessad Software to contain 'nradr eserou' of NM and/or its suppliers. Suds 'trade secrets' include..ruhnut limitation thereto. the specific design. atruaum and logic of individual Licemsd Software rMJrantt, their itiurOMOW with other portions of Licessad Software, both internal and external, end the prosmmntiug techniques employed therein. In order to maiautis the 'trade ascret' status of the information matsitud within. tha JACenaod Softwre, the Lceeeed Sottatue is bolas detivaead Sin CUSTOMER in object code form only. Nil Or eay of its nhpplira holding say imallersual properly rights in any Leensed 5oftwhuc, andlcr any third pony owning say intallaausl property iights in software from .which the Licensed Software was derived, are intended third party beeeGeiarias of this Lance. All grants of rights to use intellectual property intended to he actomplishcd by this License are expbeitly stated. No other gmts of such rights shall be inferred at shall Anse by tnpbeabon. CUSTOMER warrants to NTT that CUSTOMER is hot puntimaing the rights gamed by ttus License hti aetiripalion of retselliag those rights- CUS 0MER shall: • Hold the Licensed Software In con idcnae for the benefit of NTl and/or R'n'■ supphers using no ICU a degree of care than ii Use-1 to prawn its awn mnu c5onfideahal and valuable hafonnsuon; sod • Keep ■ tauretu record of the lor*uoa of caci copy of Licensed Sofiwere [Wade by it; and • Use each copy of Ucewod Software Only ou a single CPU at a time (fix this tatrpow, single CPU slid/ hneludo systetru with redundant processing uiuts); and • Affix in wit copy Of Uceahed Softwete macs by it, in the same form and location. a repfuduttion Of the copyright nottow trademarks, and all other proprietary legends and/or logos of N71 sad/or N71's suppliers. �sppppeeathnj Oo the original Copy of such Licensed Software delivered to C4)STOMER; aced retain the acme without alteration on all original copies; and • luue instructions to each of its authorised employcm agents, aodfor represeetWves to whom Licensed Software Ls disclosed. advising them of Use confidential nature of such liccatwd Sohwsro and to provide them with a summery of the nhquamnN ts of this License; and • Return the Licensed Software sad all copies through an Authorized Distributor to Wn et such lima a CUSTOMER ehaase.a to permanently cease using it. CUSTOMER shall oa: Use Licensed Sohwery (i) for any purpose othcr than CUSTOMER's own internal hosiscsh purpnus and (ii) other than as provided by this License: or • Allow anyone other than CLISTOMEW& e:tnpld1ft&, agtats n.n.d/ot rapresee(atives with a 'seed to know' to have Physical access to Licensed Software: Or • Make any copies of Licensed Software except such limited number of o4Wt coda copies in marhiae readable form only, as may be reasonably necessary for execution or ardtival purpoana Oa)y; or Make any modifications, enhancements, adeptaUons. or irmulauons to or of Loetued Software, except as may result from those CUSTOMER intarme low witb the licensed Softwsaa assaeiaud with normal use and a:plsised in tho associated dac nwatautss; or Attempt to nveeee esgaaser, dutoemNe. reverse translate. deoompile. Or is troy father meaner dooade Lsonamd SOflware, in older to derive the emirets Dade form or fa any alter nation: or • Melts full or p"ai copiae of say 4ocumeatdit t or tither similar pnuW Or macNae•rvsdabic matter provided with Lieaaaed Sohtiare unless the saint has been supplhcd is ► form by fill twended for periodic reproduction of partial Collie&; Or pAp • or ta•etport Lts:nmd Software and/or associated documauace frum the fifty pAW of the UnAM Suites nod the D a nck of Colulrtbhs. • NOTE- sorwithuaAdiag the shows reancuo" if Cusum er Ant bccnmd the Licamad Software under ■ 'rite heart", option as set faith t■ Customer's Purchase Agrumatit, Customs[ is audionwil to betake ■ limited outribsr of copies of the uma nd Soltwrw and de,aurteatatieo to srpp on sdditxmw user u specifssd is Cuaomees Pure me Apeemrat. CUSTOMER may sasigo colkatively its rillhu under this License to any subasqueol owner of the Hardware, but not Otherwise, aub)oCI to the payment of the then current license fec far now users. if soy. No such sstjgamcot dull be valid until CUSTOMER (1) has dalagased all of its obligsiuma under this Licoun to the milnee; and (2) has obtained from the salizu- as UWriodilio A vmuea eawtttptson of all such oblirdwae. had (3) hiss provided N71 a co*r Of such alahgnmest. deiegetwn and assumption; sod (d) bee mmsterred physical posimmoo of all Licensed Software and all tta&oeiehed dasorntsuon to the alai hoe and dassmyod all archival mesa Eincept as provided, neither this Gcaarchival nor any rights acquired by CUSTOMER Through this License are assignable, Any ,P ulemp4ed ampmcnt of rights and/or unaafer of Wcaused Software sou specifically al)owod &hall he void and conclusively presumed a material breach of this License. If NTI (i) claims a material brooch of this Lictiose, and 00 provides wNwa outitx of such Claimed material hresth to CUSTOMER had (ui) obamves that such claimed metwial !roach remiusts uocorreCted and/or uamltigmod mart than thirty (30) days followtag CUSTOMER's rooeipi of wnttas .aunt spccifyia is tes&ohabl& d&W1 the nature hal of the churned matcrbreach, thna CUITOMF.R ackaowlad es That this License may be inlruediately terminated by NTI and CUSTOMER further acknowledges that any such terminstioo shall be without prejudice to any other rights and remedies than NTI may have It law Or in. equity. EXPRESS I-IMITED WARRANTIES FOR ANY fTEM OF LICENSED SOFTWARE IF ANY. KILL BE SOLELY THOSE GRANTED DIRECI'LY'i`O CUSTOMER BY DISTRIBUTOR. AS DFSCRIBM IN THE BODY OF THE AGREEMENT TO WHICH THIS LICENSE IS ATTACHED OR, IN THE CASE OF LICENSED SOFTWARE DISTRIBUTED IN A SEALED DISK PACKAGE, THOSE WHICH APPEAR AT THE IEWD OF THIS LICENSE AGREEMENT. OTHER THAN AS SET FORTH 'THEREIN, THIS LICENSE DOLES NOT CONFER OR GRANT ANY WARRANTY TO CUSTOMER FROM OR BY NTI; THE LIC MED SOFTWARE IS PROVMM BY PM "AS 19" AND WrMIDUlT WARRANTY Of ANY KIND OR NATURE. WItITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING (WITHOUT LIMITATION) THE. IMPLIED WARRANTICS OP MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE. THIS LIMITATION OF WARRANTIES WAS..A MATVIUAL FACTOR IN THE ESTABLISHMENT OF THE LICENSE FEE CHARGED FOR EACH SPECIFIC ITEM OF SOFTWARE WCE1MED. IN NO EVENT WILL NTI AND/OR Wn*S SUPPLIERS AND THEIR Dll]tlirCl'OII& OFFICER.& EMPLOYEES OR AGENTS BE LIABLE TO OR THROUGH CUSTOMER FOR INCIDENTAL, INDIRECT, SPNECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES OF ANY KIND, INCLUDING [AST PROFITS, LOSS OF BUSINESS OR BUSINESS INFORMATION, BUSINESS IAI'T€titRC1YT10ti, QR OTH€gl 'EC4rlQM[C DAMACTS, AND FURTHER INCLUDING INIURY TO PROPERTY, AS A RMtlLT OF USE OR INABILITY TO USE THE LICENSED SOFTWARE OR Exhibit E northern • rtt Macom BREACH OF ANY WARRANTY OR OTHER TERM OF THIS LICENSE, REGARDLESS OF WHETHER NTI AND/OR NTFS SUPPLIERS WERE ADVISED, HAD OTHER REASON TO KNOW, OR 1,14 FACT KNEW OF THE POSSIBILITY THEREOF. CUSTOMER ACKNOWLEDGES THAT THE FOREGOING SE.tiTENCE REFLECTS AN INFORMED, VOLUNTARY ALLOCATION BETWEEN THE PARTIES OF THE RISKS (KNOWN AND UNKNOWN) THAT MAY EXIST IN CONNECTION WITH THIS LICENSE, THAT SUCH VOLUNTARY RISK ALLOCATION WAS A MATERIAL PART OF THE IIARGAIN BETWEEN THE PARTIES, AND THAT THE ECONOMIC AND OTHER TERMS OF THIS LICENSE WERE NEGOTIATED AND AGREED TO BY THE PARTIES IN RELIANCE ON SUCH VOLUNTARY RISK ALLOCATION. IN THE EVENT CUSTOMER HAS NOT EXECUTED A SEPARATE PURCHASE AGREEMENT WITH A DISTRIBUTOR, AND THIS LICENSE BECOMES EFFECTIVE BY REASON OF YOUR OPENING A SEALED DISK PACKAGE, THE ADDITIONAL WARRANTY PROVISIONS AND LIMITATIONS LISTED BELOW APPLY: • "LICENSED SOFTWARE" SHALL MEAN THE COMPLIER PROGRAMS WHICH ARE EITHER OWNED BY OR LICENSED TO NTI AND WHICH ARE CONTAINED ON THE DISKS SUPPLIED TO CUSTOMER. "HARDWARE" SHALL MEAN EQUIPMENT ON WHICH CUSTOMER USES THE LICENSED SOFTWARE. • NTI WARRANTS THAT THE DISKS ON WHICH THE LICENSED SOFTWARE IS RECORDED WILL BE FREE FROM DEFECTS IN MATERIALS AND WORKMANSHIP UNDER NORMAL USE FOR A PERIOD OF NINETY (90) DAYS AS EVIDENCED BY A COPY OF THE RECEIPT. NTPS ENTIRE LIABILITY AND YOUR EXCLUSIVE REMEDY WILL BE REPLACEMENT OF THE DISK NOT MEETING NTI'S LIMITED WARRANTY AND WHICH IS RETURNED TO NTI OR AN NTI AUTHORIZED REPRESENTATIVE WITH A COPY OF THE RECEIPT. NTI WILL HAVE NO RESPONSIBILITY TO REPLACE A DISK DAMAGED BY ACCIDENT, ABUSE OR MISAPPLICATION. IN PARTICULAR, NO WARRANTY IS BEING PROVIDED ON SOFTWARE DEVELOPED BY THIRD PARTY SOFTWARE SUPPLIERS. SUCH SOFTWARE SUPPLIERS MAKE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, REGARDING THE SOFTWARE. NTI'S SOFTWARE SUPPLIERS DO NOT WARRANT, GUARANTEE OR MAKE ANY REPRESENTATIONS REGARDING THE USE OR THE RESULTS OF THE USE OF THE SOFTWARE IN TERMS OF ITS CORRECTNESS, ACCURACY, RELIABILITY, OR OTHERWISE. THE ENTIRE RISK AS TO THE RESULTS AND PERFORMANCE OF ANY SUCH SOFTWARE DEVELOPED BY SOFTWARE SUPPLIERS IS ASSUMED BY YOU. THE EXCLUSION OF IMPLIED WARRANTIES IS NOT PERMITTED BY SOME JURISDICTIONS. THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. • BECAUSE SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, THE ABOVE LIMITATIONS MAY NOT APPLY TO YOU. NTI'S AND M1TFS SOFTWARE SUPPLIERS COMBINED LIABILITY TO YOU FOR ACTUAL DAMAGES FROM ANY CAUSE WHATSOEVER, AN'D REGARDLESS OF THE FORM OF THE ACTION (WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE), WILL BE LIMITED TO $90. • THE RIGHTS AND OBLIGATIONS ARISING UNDER THIS LICENSE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LA W OF THE SPATE OF TEXAS CUSTOMER HEREBY AGREES TO ADHERE TO THE TERMS AND CONDITIONS OF THIS MERIDIAN SOFTWARE LICENSE AGREEMENT: CUSTOMER SIGNATURE:��-�--__ PRINTED NAME: -In DATE: z Gj NORTHERN TELECOM INC. Rick P. Faletti President, Multimedia Communication Systems Northern Telecom Inc. Merldim Softwam License Northern Telecom Lae. ProdacU Version 5.00 1994 nnlrthom talacom ADDENDUM A MERIDIAN SOFTWARE LICENSE NORTHERN TELECOM INC. ("NTI") TELECOMMUNICATIONS PRODUCTS THIS LEGAL DOCUMENT IS A LICENSE AGREEMENT ("LICENSE") BETWEEN YOU, THE END -USER ("CUSTOMER") AND NORTHERN TELECOM INC. ("NTI"). BY OPENING THE SEALED DISK PACKAGE WHICH CONTAINS THE SOFTWARE DISKETTE(S), OR BY EXECUTING A CONTRACT FOR PURCHASE OF A SYSTEM WHICH INCORPORATES THIS USER SOFTWARE AGREEMENT, YOU, THE CUSTOMER, AGREE TO BE BOUND BY THE TERMS OF THIS LICENSE. Subject to the terms hereinafter set forth. NTI grams to CUSTOMER and/or representative:, with a 'need to know," a personal, non-exclusive license (1) to use certain Licensed Software, proprietary to NTI or its suppliers, contained as an integral part of the Hardware; and (2) to install and use each item of Licensed Software not an integral pall of the Hardware; and (3) to use the associated documentation. CUSTOMER is granted no title or ownership rights, in or to the Licensed Software, in whole or in part, and CUSTOMER acknowledges that title to and all copyrights, patents, trade secrets and/or any other intellectual property rights to and in all such Licensed Software and associated documentation are and shall remain the property of NTI and/or NTI's suppliers. The right to use Licensed Software may be restricted by a measure of usage of applications based upon member Of liars, number of pasts, number of terminal numbers assigned, number of users, or some similar treasure. Expansion beyond the specified usage level may require payment of an increments] charge or another license fee. NTI considers the Licensed Software to contain 'trade secrets' of NTI and/or its suppliers. Such 'trade secrets' include, without limitation thereto, the specific design. structure and logic of individual Licensed Software Programs, their interactions with other portions of Licensed Software, both internal and external, and the programming techniques employed therein. In order to maintain the 'trade secret' status of the information contained within the Licensed Software, the Licensed Software is being delivered to CUSTOMER in object code form only. NTI or any of its suppliers holding any intellectual property rights in any Licensed Software. and/or any third party owning any intellectual property rights in software from which the Licensed Software was derived, are intended third party beneficiaries of this License. All grants of rights to use intellectual property intended to be accomplished by this License are explicitly stated: No other grants of such rights shall be inferred or shall arise by implication. CUSTOMER warrants to NTI that CUSTOMER is not purchasing the rights granted by this license in anticipation of reselling those rights. CUSTOMER shall: • Hold the Licensed Software in confidence for the benefit of NTI and/or NTI's suppliers using no less a degree of care than it uses to protect its own most confdeatial and valuable information; and • Keep a current record of the location of each copy of Licensed Software made by it; and • Use each copy of Licensed Software only on a single CPU at a time (for Us purpose, single CPU shall include systems with redundant processing units); and • Affix to each copy of Licensed Software made by it, in the some form and location, a reproduction of the copyright aotiees, trademarks, and all other proprietary legends and/or logos of NTI and/or NTI's suppliers, Faring on the original copy of such Licensed Software delivered to UST 041ER; and retain the same without alteration on all original copies; and • Issue instructions to each of its authorized employees, agents, and/or representatives to whom Licensed Software is disclosed, advising them of the confidential nature of such Licensed Software and to provide them with a sumwmy of the requirements of this license-, and • Return the Licensed Software and all copies through an Authorized Distributor to NTI at such time a; CUSTOMER choose& to permanently cease using it. CUSTOMER shall not; • Use licensed Software (i) for any purpose other than CUSTOMER's own internal business purposes and (ii) other than as provided by this License; or • Allow aarne other than CUSTOMER's employees, agents and/or representatives with a 'need to know- to have physical access to Licensed Software; or • Make any copies of Licensed Software except such limited number of object code copies in machine readable form only, as may be reasonably neoestary for execution or archival purposes only; or Make any tru difications, eahanceme, ors, or translations to or of Licensed Software, except as may r t from those CUSTOMER interactions with the Licensed Software associated with normal use and explained in the associated documentation; or • Attempt to reverse engineer. disassemble, reverse translate. decompile, or in say other manner decode Licensed Software, in order to derive the source code form or for any other reason; at • Make full or partial copies of any documentation or other similar printed or machine-readable matter provided with Licensed Software unless the stone has been supplied in a form by NTI intended for periodic reproduction of partial copies; or • Export or re-export Licensed Software and/or associated documentation from the fifty stasis of the United States and the District of Columbia • NOTE: notwithstanding the above restrictions, if Customer has licensed the Licensed Software under a 'site license' option as set forth in Customer's Purchase Agreement, Customer is authorized to matte a limited number of copies of the licensed Software and documentation to support additional users as specified is Customer's Purchase Agreement. CUSTOMER may assign collectively its rights under this License to any subsequent owner of the Hardware, but not otherwise, subject to the payment of the then current license fee for new users, if any. No such assignment shall be valid until CUSTOMER (1) has delegated all of its obligations under this License to the assignee; and (2) has obtained from the assignee an unconditional written auuruption of all such obligations; and (3) has provided NTI a copy of such assignment, delegation and assumption; and (4) has transferred physical possession of all Licensed Software and all associated documentation to the assignee and destroyed all archival copies. Except as provided, neither this License nor any rights acquired by CUSTOMER through this License are assignable. Any attempted assignment of rights and/or transfer of licensed Software not specifically allowed shall be void and conclusively presumed a material breach of this License. If NTI (i) claims a material breach of this License, and (ii) provides written notice of such claimed material breach to CUSTOMER and (cif) observes that such claimed material breach remains uncorrected and/or unntitigated more than thirty (30) days following CUSTOMEXs receipt of written notice specifying in reasonable detail the nature of the claimed material breech, then CUSTOMER acknowledges that this license may be immediately terminated by NTI and CUSTOMER further acknowledges that any such termination shall be without prejudice to any other rights and remedies that NTI may have at law or in equity. EXPRESS LIMITED WARRANTIES FOR ANY ITEM OF LICENSED SOFTWARE, 1F ANY, WILL BE SOLELY THOSE GRANTED DIRECTLY TO CUSTOMER BY DISTRIBUTOR AS DESCRIBED IN THE BODY OF THE AGREEMENT TO WHICH THIS LICENSE IS ATTACHED OR, IN THE CASE OF LICENSED SOFTWARE DISTRIBUTED IN A SEALED DISK PACKAGE, THOSE WHICH APPEAR AT THE END OF THIS LICENSE AGREEMENT. OTHER THAN AS SET FORTH THEREIN, THIS LICENSE DOES NOT CONFER OR GRANT ANY WARRANTY TO CUSTOMER FROM OR BY NTI; THE LICENSED SOFTWARE IS PROVIDED BY NTI "AS IS" AND WITHOUT WARRANTY OF ANY KIND OR NATURE, WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING (WITHOUT LIMITATION) THE IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE. THIS LIMITATION OF WARRANTIES WAS A MATERIAL FACTOR IN THE ESTABLISHMENT OF THE LICENSE FEE CHARGED FOR EACH SPECIFIC ITEM OF SOFTWARE LICENSED. IN NO EVENT WILL N71 AND/OR NTI'S SUPPLIERS AND THEIR DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS BE LIABLE TO OR THROUGH CUSTOMER FOR INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES OF ANY KIND, INCLUDING LOST PROFITS, LOSS OF BUSINESS OR BUSINESS INFORMATION, BUSINESS INTERRUPTION, OR OTHER ECONOMIC DAMAGE, AND FURTHER INCLUDING INJURY TO PROPERTY, AS A RESULT OF USE OR INABILITY TO USE THE LICENSED SOFTWARE OR nnithafn taiacnm ADDENDUM A MERIDIAN SOFTWARE LICENSE NORTHERN TELECOM INC. ('ANTI") TELECOMMUNICATIONS PRODUCTS THIS LEGAL DOCUMENT IS A LICENSE AGREEMENT ("LICENSE") BETWEEN YOU, THE END -USER ("CUSTOMER") AND NORTHERN TELECOM INC. ("NTI"). BY OPENING THE SEALED DISK PACKAGE WHICH CONTAINS THE SOFTWARE DISKETTE(S), OR BY EXECUTING A CONTRACT FOR PURCHASE OF A SYSTEM WHICH INCORPORATES THIS USER SOFTWARE AGREEMENT, YOU, THE CUSTOMER, AGREE TO BE BOUND BY THE TERMS OF THIS LICENSE. Subject to the terms hereinafter not forth, NTI grants to CUSTOMER and/or representatives, with a 'need to know,' a persoaal, non-exclusive license (1) to use certain Licensed Software, proprietary to NTI or its suppliers, contained as a integral part of the Hardware; and (2) to instal and use each item of Licensed Software not an integral part of the Hardware; and (3) to use the associated documentation. CUSTOMER is granted no title or ownership rights, in or to the Licensed Software, in whole or in part, and CUSTOMER acknowledges that title to and all copyrights, patents, trade secrets and/or nay other intellectual property rights to and in all such Licensed Software and associated documentation are and shall remain the property of NTI and/or NTI's supphers. The right to use Licensed Software MY be restricted by a measure of usage of applications based upon number of lines, number of parts, number of terminal number assigned, number of users, or some similar mcoure. Expansion beyond the specified usage level may require payment of an incremental charge or another license fee. NTI considers the Licensed Software to contain "its& secrets' of NTI and/or its suppliers. Such 'trade sacTets' include, without limitation thereto, the specific design, structure and logic of Individual Licensed Software programs, their interactions with other portions of Licensed Software, both internal and external, and the programming techniques employed therein. In order to maintain the 'trade secret' status of the information contained within the licensed Software, the Licensed Software is being delivered to CUSTOMER in object code form only. NTI or an of its suppliers holding any intellectual property rights in any Licensed Software, and/or any third party owning any intellectual property rights in software from which the Licensed Software was derived, are intended third party beneficiaries of this License. All grants of rights to use intellectual property intended to be accomplished by this License are explicitly stated. No other grants of such rights shall be inferred or shall arise by implication. CUSTOMER warrants to NTI that CUSTOMER is not purchasing the rights granted by this License in anticipation of reselling those rights. CUSTOMER shall: Hold the Licensed Software in confidence for the benefit of NTI and/or Nn's suppliers using no less a degree of care than it -uses to protect its own most confidential and valuable information; end • Keep a current record of the location of each copy of Licensed Software made by it; and • Use each copy of Licensed Software only on a single CPU at a time (for this purpose, single CPU shall include systems with redundant processing uaits); and • Affix to each copy of Licensed Software made by it, in the same form and location, a reproduction of the copyright notices, trademarks, and all other proprietary legends and/or logos of NTI and/or NTI's suppliers, eeppppeeeriag oa the original copy of such Licensed Software delivered to CUSTOMER; and retain the same without alteration on all original copies; and • Luue instructions to each of its authorized employees, agents, and/or representatives to whom Licensed Software is disclosed, advising them of the confidential nature of such Licensed Software and to provide them with a summary of the requirements of this License; and • Return the Licensed Software and all copies through an Authorized Distributor to NTI at such Lime as CUSTOMER chooses to permanently cease using it. CUSTOMER shall not: • Use Licensed Software (i) for any purpose other than CUSTOMER's own internal business purposes and (ii) other than as provided by this Lceaw-, or Allow anyone other than CUSTOMER's employees, agents and/or representatives with a "need to know' to have physical access to Licensed Software, or • Make say copies of Licensed Software except such limited number of object code copies in machine readable form only, as may be reasonably necessary for execution or archival purposes only; or • Matte any modifications, enhancemems, adaptations, or translations to or of Licensed Software, except as may remit from those CUSTOMER interactions with the Licensed Software associated with normal use and explained in the associated documentation; cc Attempt to reverse engineer, disassemble, reverse translate, decompile, or in any other manner decode Licensed Software, in order to derive the source code form or for any other mason; or Make full or partial copies of any documentation or other similar printed or machine-readable chatter provided with Licensed Software unless the same has been supplied in a form by NTI intended for periodic reproduction of partial copies; or Export or re-export Licensed Software and/or associated documentation from the fifty states of the United States sad the District of Columbia NOTE: notwithstanding the above restrictions, if Customer has licensed the Licensed Software under a 'site license' option as set forth in Customer's Purchase Agreement, Customer is authorized to make a limited number of copies of the Licensed Software and documentation to support additional wen as specified in Customers Purchase Agreement. CUSTOMER may assign collectively its rights under this License to any subsequent owner of the Hardware, but not otherwise, subject to the payment of the then current license fee for new users, if any. No such Assignment shall be valid until CUSTOMER (1) has delegated all of its obligations under this License to the assignee; and (2) has obtained from the assignee an unconditional written Assumption of all such obligations; and (3) has provided NTI a copy of such assignment, delegation and assumption; and (4) has tranderred physical possession of all Licensed Software and all associated documentation to the assi neo and destroyed all archival copies. Except an provided, neither this License nor any rights acquired by CUSTOMER through this License are assignable. Any attempted Assignment of rights and/or transfer of Licensed Software not specifically allowed shall be void and conclusively presumed a material branch of this License. If NTI (i) claims a material breach of this License, and (ii) provides written notice of such claimed material breach to CUSTOMER and (iii) observes that such claimed material breach remains uncorrected and/or unmitigated more than thirty (30) days following CUSTOMER's receipt of written notice specifying in reasonable detail the nature of the claimed material breach, than CUSTOMER acknowledges that this License may be immediately terminated by NTI and CUSTOMER farther acknowledges that any such termination shall be without prejudice to any other rights and remedies that NTI may have at law or in equity. EXPRESS LIMITED WARRANTIES FOR ANY ITEM OF LICENSED SOFTWARE, IF ANY, WILL BE SOLELY THOSE GRANTED DIRECTLY TO CUSTOMER BY DISTRIBUTOR AS DESCRIBED IN THE BODY OF THE AGREEMENT TO WHICH THIS LICENSE IS ATTACHED OR, IN THE CASE OF LICENSED SOFTWARE DISTRIBUTED IN A SEALED DISK PACKAGE, THOSE WHICH APPEAR AT THE END OF THIS LICENSE AGREEMENT. OTHER THAN AS SET FORTH THEREIN, THIS LICENSE DOES NOT CONFER OR GRANT ANY WARRANTY TO CUSTOMER FROM OR BY N n; THE LICENSED SOFTWARE IS PROVIDED BY NTI "AS IS" AND WITHOUT WARRANTY OF ANY KIND OR NATURE, WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING (WITHOUT LIMITATION) THE IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE. THIS LIMITATION OF WARRANTIES WAS A MATERIAL FACTOR IN THE ESTABLISHMENT OF THE LICENSE FEE CHARGED FOR EACH SPECIFIC ITEM OF SOFTWARE LICENSED. IN NO EVENT WILL NTI AND/OR NTI'S SUPPLIERS AND THEIR DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS BE LIABLE TO OR THROUGH CUSTOMER FOR INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES OF ANY KIND. INCLUDING LOST PROFITS, LOSS OF BUSINESS OR BUSINESS INFORMATION, BUSINESS INTERRUPTION, OR OTHER ECONOMIC DAMAGE, AND FURTHER INCLUDING INJURY TO PROPERTY, AS A RESULT OF USE OR INABILITY TO USE THE LICENSED SOFTWARE OR 0 nurtharn Mum m BREACH OF ANY WARRANTY OR OTHER TERM OF THIS LICENSE, REGARDLESS OF WHETHER NTI ANDIOR NTI'S SUPPLIERS WERE ADVISED, HAD OTHER REASON TO KNOW, OR IN FACT KNEW OFTHE POSSIBILITY THEREOF. CUSTOMER ACKNOWLEDGES THAT THE FOREGOING SENTENCE REFLECTS AN INFORMED, VOLUNTARY ALLOCATION BETWEEN THE PARTIES OF THE RISKS (KNOWN AND UNKNOWN) THAT MAY EXIST IN CONNECTION WITH THIS LICENSE, THAT SUCH VOLUNTARY RISK ALLOCATION WAS A MATERIAL PART OF THE BARGAIN BETWEEN THE PARTIES, AND THAT THE ECONOMIC AND OTHER TERMS OF THIS LICENSE WERE NEGOTIATED AND AGREED TO BY THE PARTIES IN RELIA%CE ON SUCH VOLUNTARY RISK ALLOCATION. IN THE EVENT CUSTOMER HAS NOT EXECUTED A SEPARATE PURCHASE AGREEMENT WITH A DISTRIBUTOR. AND THIS LICENSE BECOMES EFFECTIVE BY REASON OF YOUR OPENING A SEALED DISK PACKAGE, THE ADDITIONAL WARRANTY PROVISIONS AND LIMITATIONS LISTED BELOW APPLY: • "LICENSED SOFTWARE" SHALL MEAN THE COMPUTER PROGRAMS WHICH ARE EITHER OWNED BY OR LICENSED TO NTl AND WHICH ARE CONTAINED ON THE DISKS SUPPLIED TO CUSTOMER. "HARDWARE" SHALL MEAN EQUIPMENT ON WHICH CUSTOMER USES THE LICENSED SOFTWARE. • NTI WARRANTS THAT THE DISKS ON WHICH THE LICENSED SOFTWARE IS RECORDED WILL BE FREE FROM DEFECTS IN' MATERIALS AND WORKMANSHIP UNDER RORNiAL USE FOR A PERIOD OF NINETY (90) DAYS AS EVIDF-%CED BY A COPY OF THE RECEIPT. NTI'S E\"TIRE LIABILITY AND YOUR EXCLUSIVE REMEDY WILL BE REPLACEMENT OF THE DISK NOT MEETING N"TPS LIMITED WARRANTY AND WHICH IS RETURNED TO NTI OR AN NTI AUTHORIZED REPRESENTATIVE WITH A COPY OF THE RECEIPT. NTI WILL HAVE NO RESPONSIBILITY TO REPLACE A DISK DAMAGED BY ACCIDENT, ABUSE OR MISAPPLICATION. IN PARTICULAR, NO WARRANTY IS BEING PROVIDED ON SOFTWARE DEVELOPED BY THIRD PARTY SOFTWARE SUPPLIERS. SUCH SOFTWARE SUPPLIERS MAKE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, REGARDING THE SOFTWARE NTI'S SOFTWARE SUPPLIERS DO NOT WARRANT, GUARANTEE OR MAKE ANY REPRESENTATIONS REGARDING THE USE OR THE RESULTS OF THE USE OF THE SOFTWARE 1N TERMS OF ITS CORRECTNESS, ACCURACY, RELIABILITY, OR OTHERWISE- THE ENTIRE RISK AS TO THE RESULTS AND PERFORMANCE OF ANY SUCH SOFTWARE DEVELOPED BY SOFTWARE SUPPLIERS IS ASSUMED BY YOU. THE EXCLUSION OF IMPLIED WARRANTIES 15 NOT PERMITTED BY SOME JURISDICTIONS. THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. • BECAUSE SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, THE ABOVE LIMITATIONS MAY NOT APPLY TO YOU. NTI'S AND N'TI'S SOFTWARE SUPPLI€RS COMBINED LIABILITY TO YOU FOR ACTUAL DAMAGES FROM ANY CAUSE WHATSOEVER, AND REGARDLESS OF THE FORM OF THE ACTION (WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE}, WILL BE LIMITED TO $SO. • THE RIGHTS AND OBLIGATIO%S ARISING UNDER THIS LICENSE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS. CUSTOMER HEREBY AGREES TO ADHERE TO THE TERMS AND CONDITIONS OF THIS MERIDIAN SOFTWARE LICENSE AGREEMENT: CUSTOMER SIGNATURE: f - -------•-- PRINTED NAME: DATE: -. ------ --L ---i-------------------------- NORTHERN TELECOM INC. I ' Rick P. Faletti President, Multimedia Communication Systems Northern Telecom Inc. Meridian Software License Northern Teleeom Ina Products Version 5.00 1994 0 EXHIBIT 2 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN NORTEL Communications Systems Inc. (NCS) has a history of assigning top priority to a Customer disaster and is dedicated to achieving an expedient recovery to pre -incident status. The modular design of Northern Telecom's family of switches and the high level of ongoing production in Raleigh, North Carolina, Santa Clara, California and Ontario, Canada provide imme- diate access to the equipment required for a Customer in need. In an emergency situation, NCS can obtain essential hardware from sources such as: • Finished Goods Stock - Materials that have completed the manufac- turing process and are available for configuration and shipment. • Production Line Work in Progress - Materials that comprise a corn- pleted-system, which could be expedited to Finished Goods; and/or Product Shipped But Not Installed - Pre -installation stage hardware based at another Customer site, which, through negotiation, can be di- verted for the emergency. NCS is the largest telecommunications equipment service company in California. NCS' parent company is Northern Telecom. This is significant because it means NCS has the size and resources necessary to respond quickly to a disaster of any type. NCS will work closely with the Customer to develop a Disaster Recovery Plan. NCS' commitment to supporting the Customer's Disaster Recovery Plan will be subject to the terms and conditions of the Service Agreement. The Service Agreement should be given consideration prior to the finalization of a Disaster Recovery Plan. In the event of a disaster, it is the responsibility of the Customer to notify NCS' Emergency Technical Assistance Service (TAS) at 1800-735-5980 as soon after the disaster as possible and communicate the severity of the situation to the Center. The Technical Assistance Service Representative will Immediately activate the Disaster Recovery Team for a prompt response to your needs. Exhibit F 081194BP Page I NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) Fires, floods, tornadoes, earthquakes, lightning, hurricanes... Disasters strike in many ways, but all can be equally devastating. When a disaster strikes your facility and cuts service, the results can be far reaching and often frightening. Critical links to medical, fire and police facilities are severed. Separated family members cannot communicate. Businesses lose telephone -generated revenue that can reach millions of dollars. Following a disaster, nothing will matter more to your business than re- storing service - a potential lifeline - quickly and efficiently. In the unfor- tunate event that you should experience a physical disaster which results in the complete loss of service to your Meridian 1 switching equipment, NCS will, upon notification, immediately activate the Disaster Recovery Plan. NCS and Northern Telecom have a well defined and proven internal process that is designed to ensure rapid emergency notification, and that establishes lines of communication and outlines responsibility and accountability for all procedures. A quick response to telecommunications emergencies results from contacting the key NCS personnel who oversee and coordinate the program from start to finish. The Disaster Recovery Team, made up of representatives from each major function within the division, is placed on alert and an on -site coordinator is immediately dispatched to the site to assess the extent of damage to the switch and facilities. The on -site coordinator communicates his assessment to the Richardson coordinator who assembles all team members to formulate the Detailed Recovery Plan. Each team member has access to appropriate resources to direct toward the recovery effort. The primary objective of the Disaster Recovery Plan is to restore your Northern Telecom switching equipment to complete operational status as soon as possible. In many cases, a temporary MSL-1 switch can be activated to offer interim dial tone to critical departments until the entire system can be replaced. NCS can provide experts to help assess damage to any equipment component of a network or node, including damage caused by heat, water, lightning and chemicals. NCS' engineers can help expedite reroutes and network redesign to minimize service disruptions. 081194BP Page 2 Exhibit F NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) Responsibilb Customer - NCS' TAS Representative TAS Disaster Recovery Team Members:- TAS (NCS and NTI) Service Area Manager (NCS and NTI) . Operations (NCS and NTI) Engineering (NCS and NTI) Manager, Installation and Commissioning (NCS and NTI) 1. Notifies NCS' Emergency Technical Assistance Service (TAS) at 1-800-735-5980 as soon after the disaster as possible and communicates the severity of the situa- tion. 2. Immediately notifies the Director, NCS TAS. 3. Immediately activates the Disaster Recov- ery Team from NCS and NTI. 4. Assembles and identifies the on -site coor- dinator who is immediately dispatched to Customer site. 5. Directs the immediate shipment of emer- gency temporary equipment to Customer site. 6. Identifies installation and commissioning personnel who are immediately dis- patched to Customer site. 081194BP Page 3 Exhibit F • NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) NCS' On -Site Coordinator 7. Determines the extent of damage and communicates their assessment to the Disaster Recovery Team. B. Directs the 24-hour-per-day, 7-days-per- week installation and commissioning activity of the emergency temporary equipment until basic telephone service is restored. 9. Directs the 24-hour-per-day, 7-days-per- week installation and commissioning activity of the replacement equipment until permanent service is restored. The following assumptions are taken into consideration in the implementa- tion of the Disaster Recovery Plan: • Complete destruction of all Meridian 1 /SL-100 components, cables, and MDF. Station equipment is reusable. • Response times are contingent on availability of materials, transporta- tion, disaster site facilities and/or other contractual obligations. • Customer is responsible for maintaining current back-up software (image) on magnetiF tape off site. NORTEL Communications Systems Inc./Northern Telecom recommend a monthly archival practice. + In case of multiple disasters, h=itals medical centersand other public health and safety facilities are given priority. Customer assumes all time, materials, and travel and living expenses incurred by NORTEL Communications Systems Inc./Northern Telecom personnel involved in the recovery effort. • All decisions affecting Customer's site are made jointly between Customer, NORTEL Communications Systems Inc. and Northern Telecom. 081194BP Exhibit F Page 4 • • NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) The key to successful recovery from a disaster is Customer's immediate noti- fication of the NCS Emergency Technical Assistance Service (TAS) at 1-800- 735-5980. The severity of the situation must be accurately described to the center. The Technical Assistance Service Representative will immediately activate the NCS/NTI Disaster Recovery Team for a prompt response to your needs. Disaster Recovery activities are billable at then current time and materials rates. 081194BP Page 5 Exhibit F 9 • NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) DISASTER PLAN ONKUW501"•► 1.1 The Disaster Plan is a series of actions to be taken in the event of total destruction or extreme physical damage to an SL-1. Such damage could result from flood, fire, explosion, earthquake, storm, or other events which could cause damage beyond repair by ordinary methods. The Disaster Plan applies to situations where the application of normal maintenance procedures can- not result in the prompt restoration of service. 2.1 The objective of the Disaster Plan is the restoration of service in the shortest possible time. • u ► 3.1 Special equipment is maintained for use in the event the Dis- aster Plan is put into effect. This is an SL-1 switch located at the Training Center. It is available for immediate use by the Field Service and Support Department if it is needed for a customer who is without telephone service as the result of a disaster. 3.2 Approval for shipping the emergency switch must be obtained from the Vice -President, Field Service and Support. It should be requested by the Region Operations Manager of the region in which the disaster occurred. Should the Vice -President, Field Service and Support not be available, it may be released for ship- ment by one of the following - Vice -President, Sales and Service Vice -President, Marketing President, Business Communications Group 081194BP Exhibit F Page 6 0 0 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) 10 O)&MVoii :*Ca �Z 4.1 The Disaster procedure requires a number of actions which have been determined as effective in restoring telephone service to the customer as quickly as possible. These actions are to be carried out any time the Disaster Plan is put into effect. 4.2 From the time a report of a disaster is received, there are several positions within the Company which begin working closely toward the objective of restoring service: Vice -President, Service Region Operations Manager Manager of Technical Assistance Center Materials Manager Service Area Manager 4.3 Anyone receiving a report of a disaster is to relay the informa- tion immediately to the Operations Manager. This is the point at which all activity which involves the Disaster Plan begins. The Operations Manager begins the process by sending a Service Area Manager and one or more technicians to the site of the disaster. The Service Area Manager will make an assessment of the damage and report the extent of the damage to the Branch Manager. The Operations Manager is to inform the Vice President, Operations of the situation. The Vice President evaluates the information and advises the Operations Manager, making a recommendation as to whether or not the Disaster Plan should be activated: 4.4 The responsibility for making the decision to activate the Disaster Plan belongs to the Operations Manager. The decision should be based on an evaluation of all available information, and giving some consideration of the cost to the Company. 081194BP Exhibit Page 7 P' NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) 4.5 If the decision is to activate the Disaster Plan, the Operations Manager immediately contacts the Vice -President, Service, for release of the switch. Written confirmation of the action is then made by TWX message to the following: President Vice -President, Service Manager of Technical Assistance Center The TWX message must contain the name of the customer, the location, and a brief statement of the assessment of damage. 4.6 The Operations Manager contacts the Manager of TAC by tele- phone and obtains a commitment for the appropriate number of engineers to be sent to the site. 4.7 The Service Area Manager instructs the Materials Manager to expedite shipment of the emergency switch. 4.8 As these activities are proceeding, the Service Area Manager at the site prepares a list'of materials that will be needed to restore service. Materials available at the local warehouse are brought to the site immediately. The remaining materials are requested from the Materials Manager, who expedites shipment. The Service Area Manager has the following additional responsibil- ities: Notify the associated Telco of the requirements necessary for restoring service. Serve as liaison with the customer while service is being restored. Coordinate overall activities with the on -site foreman. Keep the Vice President, Service informed of the progress of the activities. 081194BP Exhibit F Page 8 • E NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) 4.9 After making an assessment of damages and reporting to the Service Area Manager, the on -site foreman assumes the follow- ing responsibilities: Conduct clean-up operations. Furnish single -line telephones for temporary service. Supervise technicians involved in restoring service. The Disaster Plan continues in effect until full service has been restored. The Service Area Manager then sends a TWX message to those outlined in paragraph 4.5, advising them of completion. 081194BP Exhibit F Page 9 Noxtel 6/27/96 13:49 AM i AIarSII .Q i'i I.0 II II AiI, l,1i1111C(I Cau;it:a Ti IISl Ton (:l - li"'i_ 1'I:Iie 161 31y Sllc•e! -- :'.i_)- Box 5. , •r�,rta; •.T t-�r1 rra i;, Sclrl,hr::r-Il'- 8'0i 7r,tltl Certificate of Insuraance rV20 0 MARSH & MCLEN NAN Page 2/3 rnls itr Insurcmcu ncllnu. alrinnio.v :Iy Ilor :1.t:y81IV(!ly ❑rrie(1lls. UXII1;als or wit.:s Illit c::vt:ra(lt: f.'r: r(le(l ky ill:: Iliillous SCIIe(hne(i It Is l.lr::'s"i: 'I Z;S it Inalli'r :'rlkirinallim :fniyno rioi'�s lllwn nnl!It'r 8" (I Is ISSI:(i:i M111 lilt; III: r1i)rSlt9:'(:III(g IIi:L r1!ir:s :iml II;II:III!le5 iil 11w parlw-s will l)e (IVvt:"t:(I liy Ine urk1111n1 1:1::,;;v trr liulit: ea 71S !I'k!V Illay Ilm ;RW 111lly bl::Lw it! (I i)v i!n( It)rs t!:'lvrl l in 11 ri '1:1w It: 11,nti .a:ne ana ar,[:,ess to la�om 1ss:,ed Name aI)( address of ins -,el -it}' of iia.-lcington Bead-- NOR EL Cc=nlnlicatio:is Systems Inc. ?OCC Main Street Northern Telecom. Inc. 3untirgton Beaci- CA 92646 200 Athens Way °i,N: Cathy Smit Nashville TN 37228-1397 Ty pe of Insurance Insure; Pol;cy Number Explra'.ion Dale Coverages Limits o' Liability AMERICAU CGL675590102 5/15/98 Each occu,^ence or act dent Cornprenensve General I GUARAIT—LEE s inclusive Limits $2 , 000, 00C Uan,,.i y LIABILITY Bodily Injury and Property Damage Adore ate Produ.~ts S INSURANCE Liability $2 , 000, 000 CONTA-W Arl �.a, Aggregate $2,000,000 AuiC:' obile Inclusive I_.MAS Each acci5ent Uabwlly Boduy Injury a� ,d Property Damage Lrabllny Description et Ooerat;or^s or Automoc;,es cove: ed and tier Comments _ city of Hwitin-7ton Beach, city officers, employees and agents are additional insured w to respect only to claims arising out of bodily injury or damage to tangible property caused by tale negligence of NOR-_ Coinanunicat4orls Systems Inc. or ;:ts employees in t:ie performance of the agreement. C;ANCELLAT ION: Srould any of the above described policiesbe cancei,ea oelore t'le expiral0r. date(. of • rlsurerrsi w in endeavouf to lnaa 30 ----(lays wrVen notice tc the Cer.?icate Honer but faaure to 1na3 such nol-ce shall ilr,pose nc ogligation or ..aba.y or any kind upon eitner the f insurers; or roarsr S McLenran Limilea Iss,iedat Nashville, TN Date 27 June, 1996 Nortel • 6/27/96 8:50 AM • Page 3/3 prt I ICiI o ur lrlstlrnn to THi=; (-ERT.Tmr:ATE iS; is ;UED Ai, A NIATTER OF INFORMATION ONLY AND CONFERK NO RI(;HTS IiPONI Vol I THE GFRTIFICATE HOLDER THIS C'ERTIFI! :ATE +� fgOT AN )fvti1JRANCE PoLi(:Y AND DOE`: NOT AMEND- EXTEND OR ALTER THE ::(aVERA(;E APP(IRC60 BY THE POLIC:IE� L. 7ED BELOW This is to tilJit NORTEL Communications Systeiru Inc. Name an(I Noz-their. Telecom Inc. 200 Athe::s Way;`tl`It address LIBERIY In�irrcd Nashville TN 37228-1397 MUTUALb is, at .he issue date of iris cenijicate. insurea by the Company under me policy(ies) I,'sted be -ow. Tne insurance afforded by the listed pollcy(ies) Is subject to ail their terms. exclusions and conditions and is not altered by any reauiremem •.erm or condition of any contract or acther documenl. with respect to which Vnis cenif,cate may be .ssued. TYPE OF POLICY CERTIFICATEEXP DATE POLICY NUMBER LIMIT OF LIABILITY ❑ CONTINUOUS ❑ EXT♦ NLIED ® POLICY T5RM S 5/15/97 ^ ViA1-05D-.,04057-166 Coverage Atlo•dedUraerWC Laveo!!he Foco•n•IngStates - EMPLOYERS LIABILITY /Svp8-65B-004057-116 All States Bodily injury ey Acciaer.; Bodily Statut0l.�.' (except- $1,000,;co AMCIor,r WORKERS ND, 'N" c±, WA, od:Iy Injury y �sease Policy COMPENSATION SdV 4iY j r ' $_,000,000 u•ryc ao.:y'r,wy By Disease Eah S1, 000, Cc.O ..`... GENERAL General Aggreyale-Olrei '.'-an PiouiCompleled Ope•anons LIABILITY rotll.c:si omp:ered operai.ons Aggregate CLAIMS MADE oo..y Injury and rope-.y amage _'abl ily Per RETRO DATE Occurrence Persona. and aiertising'^ ,ry Per Person' organizolion OCCURRENCE AUTOMOBILE Bol ano P.?e nComC RQ -it LIABILITY eac`r Person t"4'r O::"JED U Each ccident or Occurrence ® NON-O*KED Eacn Accident or Ccc..•rence ® HIRED OTHER ADDITIONAL COMMENTS �.-� .r• r�rtSr.--t-tl'•'il�y' IFTHECSRTIFICATEEXPIRATiONDATE I�CONTINIJOUSOREXTENGEDTERM YOU W.LLBENITI ,. ,C GE ; .ERNIINATEDORAEDIJf,EC BEFORE THE CERT•F! ATE EXPIRATION DATE. HOWEVER- YOU WILL JOT BE NOTIFIED ANNI_iALLY C -rig :::vrrT'. rON ;fir i:OVERAGE SPECIAL NOTE - OHIO ANY PERSON WHO. WITH IYTENT TO DEFRAUD OR KNOW:NG THAT HE IS FAD• LI�ftTrlN(; FRAi AGAINST AN IN5l_RER. ' u1B`rIT6 AN A¢PLICAT!ON OR FILES A CLAM CONTAINING A cAI.SE OR DECEPTIVE STATE*ilENT ,ti %:�1 ffLTY C')F INSURAN, E FRA!j^- NOT:(_ i_ OF C:AN1.ELLATi0N- i NOT APPLICABLE IJNLE,`i A NI Ir."•BER OF DAY`.: IN ENTERED BELOW BEFORE THE STA"ED EXPIRATION DATE THE COMPANY WILL NOT CANCEL OR REDt ICE THE / L'be ty f u,L:a' INtiI1RAN(:c AFFORDED UNDER THE ABOVE POLI, IES!,NTIL AT LEAST f"; DAY'-; NOTI :E 0(: til IC:H "`//l CANCELLATION HAS BEEN r•AA'LED TCi. IrSt ranCe Groua City of Huntington Beach CERTIPK-ATE 2000 flair. Street 11i3J1�ri � HOLDER Huntington Beach CA 92646—AUTHCR-ZED R-EPRESENTAT:VE A=: Cathy Smith Btentt:=ood, TN 27 Jtu1e, 157E 1'1::RICE DATE ISSUED Tlilti r.r.'HIII sllc I; rixrlazulcrl by LIBERTY PA lITIIAt.'%NNURAN(:E GRU11P its rospoi:a such rStlrillIGU as I;y?;u,s,. rnuli::r,:rls 135 /%rR; CITY OF HUNTINGTON BEACH 2000 MAIN STREET June 27, 1996 Contract Administration Nortel Communications Systems, Inc. 2400 Camino Ramon, Suite 100 San Ramon, California 94583 Dear Sir. CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK l The City Council of the City of Huntington Beach at their regular meeting held June 17, 1996 approved execution of the enclosed agreement between the City and Nortel Communications Systems, Incorporated to replace the damaged telephone system at the Central Library. Enclosed is a duly executed copy of the agreement for your records. Sincerely, Connie Brockway City Clerk/Redevelopment Agency Clerk Enclosure: Agreement 96-002mh (Telephone: 714-536.52271 _ A �Ach CouncillAgency Meeting Held: Deferred/Continued to: ❑ Approved �Onditiona4 Approved ❑ Denied City Clerk's Signature Council Meeting Date: 03/04/96 Department ID Number: FD 96-002 REQUEST FOR COUNCIL ACTION SUBMITTED.TO: HONORABLE MAYOR AND CITY COUNCI MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administra r PREPARED BY: MICHAEL P. DOLDER, Fire Chief SUBJECT: REQUEST FOR FUNDS TO REPLACE DAMAGED TELEPHONE SYSTEM AT CENTRAL LIBRARY Statement of issue, Funding Source, Recommended Action, Alternative Action, Analysis, Envlronmentai Status Attachment(*) Statement of Issue: Staff is seeking Council approval to provide $120,386 for the replacement of the Horthem Telecom Meridian 1 telephone system and related equipment located at the Central Library. On July 19, 1995, the telecommunications equipment was - damaged by water and dirt as a result of TEPS Cable, a contractor for Paragon Cable, pulling a cable through a conduit running into the library phone room. Funding Source: Equipment Replacement unappropriated fund balance. The City plans to recover these monies in the future through negotiations, or litigation if necessary, with TEPS Cable/Paragon Cable's insurance carrier. Recommended Action: 1. Authorize appropriation of $120,386 out of the unexpended Equipment Replacement Fund balance; 2. Authorize the expenditure of $120,386 for immediate replacement of a component of the City's telephone system and related equipment; 3. E7r/eGf' Crhf 5"-4t' Q9arni1' QI! pa-i es rho c. , 4yhrnebr rHa,y( W"," I-e-Sp !r&- Alternative Action(s): Do not provide funds to replace telephone system and related equipment at the Central Library. Instead, replace system at unknown future date after recovering monies from TEPS Cable/Paragon Cable's insurance carriers. However, waiting to replace the system poses a serious public safety threat, as the system is a central node to the City's telecommunications network, providing communication to police substations, fire stations and other City locations. The system's status has been rated critical by Norfel Communications, the City's telephone system vendor and three I'll failures have occurred since the damage. kEQUEST FOR COUISS ACTION Meeting Date: SUBJECT: REQUEST OR FUNDS TO REPLACE DAIRED TELEPHONE SYSTEM AT CENTRAL LIBRARY FD 96-002 Analysis: On July 19, 1995, an integral component of the City telephone system located at the Central Library suffered water and dirt damage as a result of TEPS Cable . Company, a contractor for Paragon Cable, attempting to pull cable through a conduit running into the library telephone room. TEPS applied air pressure to clear the conduit, forcing water and dirt out of the conduit and into the telephone room. The Northern Telecom Meridian 1 PBX and Voice Mail were struck with water and -the system went out of service. The system has been restored by Telecommunications staff, however, the system has failed three (3) times since the July incident. Norte[ Communications Systems, the City's telephone system vendor, conducted a thorough audit of the system to evaluate its condition after the water damage. The audit (Attachment 1) detected major/critical damage to the system. Nortel has recommended that the City replace the entire telephone system with a new unit at a cost of $120,386. Replacement of the equipment eliminates the risk of future failures. The system would be configured and programmed before installation, so there would be minimal downtime during installation. Nortel's replacement costs are detailed in Attachment 2. The telephone system located at the Central Library is a crucial node of the City's telecommunications network. It provides a central point for telephone call routing for Bushard Fire Station, Murdy Fire Station, Warner- Fire Station, Oakview Police Substation, and Park, Tree and Landscape. If the Central Library system -were to fail, telephone calls to and from these Locations would be eliminated. Environmental Status: The conduit which caused this damage has been replaced. Other conduits leading to this location should be replaced. "Otherwise, current environmental conditions are adequate. Attachment(s): 1. Nortel Communication Systems systems audit. 2. Nortel Communications Systems cost quotes. 3. Fiscal Impact Statement #96-23 FD96-002.DOC -2- 02121/96 10:03 AM �yuMrr�y yid- • ~ 4'& OFFICE of CITY ATTORNEY P.O Box 190 2000 Main Street Gall Hutton Huntington Beach, California 92648 City Atrorney June 4, 1996 VIA FAX and US MAIL Norte] Communications Inc. ATTN: Terri Hattabaugh, Account Executive 5785 Corporate Avenue, Suite 170 Cypress, California 90630 Dear Ms. Hattabaugh: Telephone (714) 536-5555 Fkx (714) 374-1590 Please review the enclosed contract for the installation of the telecommunications systems at the Central Library. The agreement includes all changes requested by Nortel except for the request to limit liability to the value of the system and/or services. As we discussed on the telephone, this agreement has been considered by the Settlement Committee and the attached agreement conforms to the recommendations of the Settlement Committee, The City Council will be considering the issue on June 17, 1996. At that time, City Council has the option to accept the recommendations, reject the recommendations, or to accept and reject the recommendations in part. Please advise me as soon as possible if the enclosed contract is acceptable. Please contact me by phone at (714) 536-5555, or fax at (714) 374-1590. Sincerely, r� NNIFER MCGRATH Deputy City Attorney limp Enclosure: Proposed Agreement c: Cathy Smith, Telecommunications Assistant lepedartyhr l 2i mm'Gr4:96 0 � 0 AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND NORTEL COMMUNICATIONS SYSTEMS, INC. FOR TELECOMMUNICATION SYSTEM THIS AGREEMENT, made and entered into this day of 19 , by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY', and NORTEL COMMUNICATIONS SYSTEMS, INC. ("NORTEL"), a corporation, hereinafter referred to as "CONTRACTOR." WHEREAS, CITY desires to engage the services of a telecommunications systems contractor to install such system at the Central Library, at 7111 Talbert Avenue, Huntington Beach, CA 92648; and Pursuant to documentation on file in the office of the City Clerk, the provisions of HBMC Chapter 3.03 relating to procurement of professional service contracts has been complied with; and CONTRACTOR has been selected to perform said services, NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows: WORK STATEMENT CONTRACTOR shall provide all services as described in the Scope of Work Annex, attached hereto as Exhibit "A" and incorporated into this Agreement by this reference. Said services shall sometimes hereinafter be referred to as "PROJECT." CONTRACTOR hereby designates , who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator ("Telecommunications Coordinator") to work directly with CONTRACTOR in the performance of this Agreement. 0 JMPMnortel/5130M 3. TIME OF PERFORMANCE CONTRACTOR will use dll commercially reasonable efforts in performance of this Agreement. The services of the CONTRACTOR are to commence as soon as practicable after the execution of this Agreement and all tasks specified in Exhibit "A" shall be completed according to the schedule attached hereto as Exhibit "B" and incorporated herein by reference. These times may be extended with the written permission of the CITY. This schedule may be amended to benefit the PROJECT if mutually agreed by the CITY and CONTRACTOR. 4. COMPENSATION In consideration of the performance of the telecommunication services described herein, CITY agrees to pay CONTRACTOR a fee not to exceed One Hundred Seventeen Thousand, Four Hundred and Forty -Five Dollars ($117,445), pursuant to the payment schedule as described in Exhibit "C" attached hereto and incorporated herein by reference. 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A," or changes in the scope of services described in Exhibit "A," CONTRACTOR will undertake such work after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. No change shall be allowed if the cumulative effort of such change together with all previously approved changes to the scope of service decreases the Agreement fee by more than twenty (20) percent. Any change involving deletion of Exhibit "D" equipment previously delivered to the installation site shall require the CITY to pay to CONTRACTOR a restocking charge equal to ten (10) percent of the price for such equipment. As an exception to the aforementioned terms, restocking charges will not be applied to the CITY's return of the telephone instruments to CONTRACTOR. 2 JMPlklnorteV513b196 • • . 6. METHOD OF PAYMENT A. CITY agrees to pay CONTRACTOR the price of the Equipment identified in Exhibit "D." CITY shall pay CONTRACTOR twenty-five percent (25%) of the price of the equipment within thirty (30) days of the effective date of this Agreement. The balance of the price shall be paid as described in the payment terms described in Exhibit "C" of this Agreement. B. Delivery of work product: A copy of every technical memo and report prepared by CONTRACTOR shall be submitted to the CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by CITY shall be deemed accepted. C. The CONTRACTOR shall submit to the CITY a milestone acceptance form (MAF) and invoice for each progress payment due in accordance with Exhibit "C". Such iMAF shall: 1) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) include a certification by a principal member of the CONTRACTOR's firm that the work has been performed in accordance with the provisions of this Agreement; and Upon submission of any such invoice and MAF, if CITY is satisfied that CONTRACTOR is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. if the CITY does not approve an invoice, CITY shall notify CONTRACTOR in writing of the reasons for non -approval, within seven (7) calendar days of receipt of the invoice, and the schedule of performance set forth in Exhibit "B" shall be 3 .1MPAdnaftd M196 suspended until the parties agree that past performance by CONTRACTOR is in, or has been • brought into compliance, or until this Agreement is terminated as provided herein. D. Any billings for job change orders authorized by CITY shall be invoiced separately to the CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the job change order requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate.. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONTRACTOR agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notices, calculations, maps and other documents, shall be turned over to CITY upon termination of this Agreement or upon PROJECT completion, whichever shall occur first. In the event this Agreement is terminated, said materials may be used by CITY in the completion of PROJECT or as it otherwise sees fit. Title to said materials shall pass to the CITY upon payment of fees determined to be earned by CONTRACTOR to the point of termination -or completion of the PROJECT, whichever is applicable. CONTRACTOR shall be entitled to retain copies of all data prepared hereunder. S. INDEMNIFICATION AND HOLD HARMLESS CONTRACTOR shall indemnify and save and hold harmless CITY, its officers and employees, from any and all liability, including any claim of liability and any and all losses or costs arising out of bodily injury or damage to tangible property due to the negligent performance of this Agreement by CONTRACTOR, its officers or employees. 9. WORKERS COMPENSATION CONTRACTOR shall comply with all of the provisions of the Workers Compensation Insurance and Safety Acts of the State of California, the applicable provisions 4 JMP/k/norteV6/4/96 rJ of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONTRACTOR under this Agreement. CONTRACTOR shall obtain and furnish evidence to CITY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease, policy limit. 10. INSURANCE In addition to the workers compensation insurance and CONTRACTOR's covenant to indemnify CITY, CONTRACTOR shall obtain the following insurance covering the 0 PROJECT: A. General Liability Insurance A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify CONTRACTOR, its officers, agents and employees, whife acting within the scope of their duties, against any and all claims for bodily injury or damage to tangible personal property due to negligence of the CONTRACTOR arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combinecl single limit bodily injury and property damage, including productslcompleted operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name CITY, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONTRACTOR's insurance shall be primary. 5 JMPMncr1eV513M6 11. CERTIFICATES OF INSURANCE: ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, CONTRACTOR shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled or modified without thirty (30) days prior written notice of CITY. CONTRACTOR shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. The requirement of 30 day written notice of cancellation on the certificates and endorsements under Section! (C)(4) of Resolution No. 6277 is hereby waived.. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under the Agreement. CONTRACTOR shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of CONTRACTOR's insurance policies, naming the CITY, its officers and employees as Additional insureds shall be provided to the -City Attorney for approval prior to any payment hereunder. The certificate of insurance for general liability shall show the CITY, its agents, officers and employees as additional insured. 12. INDEPENDENT CONTRACTOR CONTRACTOR is, and shall be, acting at all times in the performance of this Agreement as an independent contractor_ CONTfLkCTOR shall secure at its expense, and be responsible for any and-all.paymeni of all -taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONTRACTOR and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. . 6 JMPANnorteV514M 0 13. MATERIAL_ BREACH All work required hereunder shall be performed in a good and workmanlike manner. If any material breach of this Agreement shall continue for more than 30 days after receipt by the breaching party of written notice from the aggrieved party stating in reasonable detail the nature of the breach, then the aggrieved party shall be entitled to avail itself, cumulatively, of any and all remedies available at law or equity, including termination hereof, except as specifically limited elsewhere in this Agreement. If CITY is the aggrieved party then CITY may suspend payment of any sums due hereunder for so long as CONTRACTOR's breach continues uncorrected. If CONTRACTOR is the aggrieved party then CONTRACTOR may suspend performance of any or all of its obligations hereunder for so long as CITY's breach continues uncorrected. A condition precedent to any legal action by either party to enforce or interpret any right or obligation under this Agreement shall be the receipt by the other party of notice, at least 30 days prior to such action, and which states with reasonable 0 particularity the claimed breach or grievance. 14. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the supervisory work hereunder shall not be delegated by CONTRACTOR to any other person or entity without the consent of CITY. 15. COPYRIGHTS/PATENTS CONTRACTOR shall not apply for a patent or copyright on any item or material produced as a result of this Agreement, as set forth in 41 CFR 1-9.1. 16. CITY EMPLOYEES AND OFFICIALS CONTRACTOR shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the Califomia Govemmenf Code. JMPlh/norteilBMW 7 17. NOTICES Any notices or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to CONTRACTOR's agent (as designated in Section 1 hereinabove) or to Cl-lYs Fire Chief as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 ATTN: 18. IMMIGRATION TO CONTRACTOR: Nortel Communications Systems, Inc. 2400 Camino Ramon, Suite 100 San Ramon, CA 94583 ATTN: CONTRACTOR SHALL be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 19. ACCEPTANCE Upon completion of installation, acceptance testing will be performed in three phases, as follows: 1) CONTRACTOR'S standard test procedures will be performed for CITY Telecommunications Coordinator, verifying operation °cut over" of all components of the installed telecommunications system at each site. 2) During the first business week following in of each site, CITY Telecommunications Coordinator will perform end user testing to determine that the system performs in a satisfactory manner according to the manufacturer's installation specifications and the standard practices of the telecommunications industry. 8 JMPIWnorteV614J96 3) Fallowing satisfactory performance of the end user test, user reliability testing will be performed by the CITY Telecommunication Coordinator, with the assistance of CONTRACTOR, for a period of three (3) consecutive business weeks. During this period, end user will operate the system for their. ordinary needs. Each telecommunication system will be deemed to have satisfactorily passed the reliability test if, during this period, the equipment and the software operate free from major failure. For purposes of this paragraph, major failure is defined as no dial tone, inability to make outgoing calls or inability to receive incoming calls for ten (10) percent or more of any telephone sets supported by any one system, with the exception of police, fire, lifeguard, public works and emergency services departments as to which there will be no minimum. If a system fails to pass any or all phases of the acceptance testing, CONTRACTOR shall correct the deficiency(ies) at its expense. The applicable phase testing shall be repeated until all three phases are satisfactorily passed. 20. RISK OF LOSS Risk of loss to the switch components of the equipment itemized in Exhibit "D" shall pass to CITY upon physical delivery of each such component to its respective switch room by CONTRACTOR. General risk of loss to any other portion of each system shall pass upon deliver of such portion to the CITY premises. After general risk of loss has passed to CITY, CONTRACTOR shall continue to be liable for (A) equipment shortages of terminal equipment until installation (contingent upon the CITY providing to CONTRACTOR a secured location) and/or. (B) damage to losses to the equipment or scope of work due to CONTRACTOR'S negligence. Title to the equipment shall not pass to CITY until CONTRACTOR has been paid all amounts due for the equipment under this Agreement 21. SHIPPING The Exhibit "D" equipment and system software as described in Exhibit "E" shall be shipped by CONTRACTOR to CITY in accordance with the delivery schedule specified in 9 JM P1klnorteV614M • • Exhibit "B." CONTRACTOR will provide ten day notice to CITY of the scheduled shipment date for the switch component of each system. Freight expenses for saie. Equipment will be paid by CONTRACTOR. If the CITY rejects or cancels for good cause any product, CONTRACTOR shall bear all shipping charges relating to such product. If CITY has already paid . CONTRACTOR for such product, CONTRACTOR shall refund such payment to CITY. 22. MAINTENANCE CONTRACTOR shall perform maintenance services on the Equipment under the terms and conditions of this Agreement and service contract automatic renewal dated May 9, 1995 and all subsequent renewals. 23. NONDISCLOSURE Both parties acknowledge that information made available pursuant to this Agreement is confidential and proprietary to the other party and both parties agree to restrict the disclosure of such confidential and proprietary information to only those individuals who require the information to perform pursuant to the terms of this Agreement. 24.. INSTALLATION SERVICES CONTRACTOR shall be responsible for unpacking and placement of the Equipment at the installation site. Installation of the Equipment to be installed will be performed by the CONTRACTOR at the prices specified in Exhibit "C," and with minimal disruption to the CITY'S day-to-day business operations. 25. FORCE MAJEURE Neither party shall be liable for delays, loss, damages or other consequences of acts, omissions or events beyond a party's control and which' may not be overcome by due diligence, or caused by strikes or labor strife and unrest. 26. DOCUMENTATION CONTRACTOR shall provide CITY documentation to support the operations of the Equipment and Software in accordance with the Agreement without charge. CONTRACTOR grants CITY the right to duplicate such documentation for its internal use only. 10 JMPlkharteV6t4196 • • 27. WARRANTY A. CONTRACTOR warrants that CONTRACTOR possess good and clear title to said Equipment and there are no pending liens, claims or encumbrances whatsoever against said Equipment. B. CONTRACTOR warrants that as of the date of shipment that: the Equipment incorporates all current manufactures' required engineering changes released to the general public; the Equipment qualifies for maintenance services by the manufacturers. C. CONTRACTOR warrants that the Equipment will be free from defects in material and workmanship and will conform to specifications for a period of one (1) year commencing at network cutover date. D. In the event any component part of the Equipment is or becomes defective by reason of material or workmanship during said period, and the CITY immediately notifies CONTRACTOR in writing of such defect, CONTRACTOR shall repair or replace the Equipment or component at no charge to the CITY. All replaced parts shall become the property of CONTRACTOR on an exchange basis. This warrant does not extend to any equipment that has been subject to misuse, neglect, accident, improper or unapproved installation, acts of God, power taiiure, or to equipment to which repairs or modifications have been performed by persons other than CONTRACTOR'S own or authorized service personnel, unless such repairs by others were performed with the written consent of CONTRACTOR. E. CONTRACTOR warrants that all services provided pursuant to this Agreement will be performed in a workmanlike manner in accordance with reasonable commercial standards. CONTRACTOR shall correct all services not performed if brought to CONTRACTOR'S atterrii m invia#ing within the warranty period. F. CONTRACTOR warrants for a period of 365 days following receipt that the documentation provided pursuant to this Agreement shall be substantially free from errors. CONTRACTOR shall correct any document errors brought to its attention during the 30 day period following notification of found errors. 11 JMP/WnodeVGSM • • G. The warranties and remedies set forth above constitute the only 0 warranties with respect to the system and the CITY'S exclusive remedies if such warranties are breached. The stated warranties are in lieu of all other warranties, written or oral, statutory, express or implied, including, without limitation thereto, the warranty of merchantability and the warranty of fitness for a particular purpose. CONTRACTOR shall not be liable for any incidental or consequential damages of any nature or any reason either before or after cutover. 28. EXCUSABLE DELAY A. Neither part shall be liable when delays arise out of a cause beyond the control and without the fault or negligence of either party. Such causes may include, but are not restricted to acts of God or the public enemy, government action or failure to act, fires, floods, earthquakes, epidemics, quarantine restrictions, strikes, freight embargoes, war, civil disturbances, work stoppage, power failures, laws, regulations, ordinances, acts of unusually severe weather. In such event, the party affected shall be excused from such performance on . a day -for -day basis for the extent of such interference (and the other party shall likewise be excused from performance of its obligations on a day -far -day basis to the extent such party's obligations relate to the performance so interfered with). B. CONTRACTOR delay caused by the delays of subcontractors of CONTRACTOR shall be deemed excusable if the subcontractor's delay is beyond the control and without the fault or negligence of the subcontractor as described in this section. C. The party who has been affected by an excusable delay shall immediately give'notice to the other party of such circumstances. 29. DISASTER RECOVERY Disaster recovery will be determined by the terms of the existing maintenance agreement between the parties for the location designated by this Agreement. A. In the event of a disaster or accident that impairs operation of the Equipment purchased under this Agreement, the CONTRACTOR shall use its best efforts to 40 12 JMPWnodeV614J96 4) help the CITY restore operations as quickly as possible. Such services will be provided at the CONTRACTOR'S then prevailing rates. B. CONTRACTOR will provide Disaster Recovery services to Fire, Police, Lifeguard and Public Works sites first, and will prioritize remaining CITY sites in accordance with the Nortel Communications Systems, Inc. Disaster Recovery Plan attached hereto as Exhibit "F" and incorporated by reference. C. CONTRACTOR will provide name and telephone numbers (home and office) of emergency contacts to 30. CONTRACTOR PERSONNEL at cutover. CITY shall have the right to require in writing the CONTRACTOR to replace any of the CONTRACTOR'S on -site personnel in the event that the CITY reasonably determines such person is disruptive to the Project. The replacement shall be selected by the CONTRACTOR and approved by the CITY. The CONTRACTOR shall have up to five (5) days to make a replacement. 31. GRANT OF LICENSE CONTRACTOR shall grant to CITY a license to use certain computer software embodied in or associated with the hardware. The hardware and software are itemized in Exhibit "D". The software is provided to CITY pursuant to the provisions of the Software Sublicense, attached hereto as Exhibit °E". 32. CONTRACTOR'S DAMAGE LIABILITY Notwithstanding any other provisions of this Agreement, CONTRACTOR shall in no event be liable for any damages caused by the CITY'S failure to perform the CITY'S responsibilities or for any incidental, special or consequential damages (ever? if CONTRACTOR has been advised of the possibility of such loss or damage. 13 JMPA(Mottel/66/96 33. WAIVERS No action or inaction by either party shall be interpreted as a 'wavier" and no waiver shall be valid unless it is in writing and signed by the City Administrator. 34. ARBITRATION Any controversy or claim arising out of or relating to this Agreement or the breach thereof, shall be settled in accordance with the laws of the State of California. 35. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONTRACTOR and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONTRACTOR understands that pursuant to Huntington Beach City Charter Section 309, the City Attomey is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONTRACTOR. 36. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. REST OF PAGE NOT USED • 14 JMPWnorteV614M • r� u 37. ENTIRETY 0 . The foregoing, and Exhibits "A" through "F" attached hereto, set forth the entire • Agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. NORTEL COMMUNICATIONS SYSTEMS, CITY OF HUNTINGTON BEACH, A INC. municipal corporation of the State of California By: print name Mayor ITS: (circle one) ChairmanlPresidentNice President By: APPROVED AS TO FORM: print name ITS: (circle one) Secretary/Chief Financial { tgjj( ity Attorney U d4 4& Officer/Asst. Secretary -Treasurer i;1 l I ATTEST: City Clerk REVIEWED AND APPROVED: City Administrator INITIATED AND APPROVED: Fire Chief r 15 JM PlklnorteV6/4196 • r] PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMI ICATIONS SYSTEMS INC. ("NORTEL") CITY OF HUNTINGTON REACH ("CUSTOMER") SCOPE OF WORK ANNEX NORTEL shall: • Install the Hardware and Software listed in Annexes 1 and 2 at the following location: 7111 Talbert Avenue Huntington Beach, CA 92648 • Provide and install 64 digital ports for connection to existing digital sets. • Provide and install the following trunk or circuit ports to interface to the carriers and existing network: 35 COT 3 T-1 • Use existing data -base to program Option 61C. Any new Database changes will be provided at an additional charge via Job Change Order. • Provide and install 48 analog ports for use with customer provided analog sets, modems or fax machines. • Provide and instill IPC 300 modem for remote maintenance. Provide and instill earthquake bracing. • Provide and install overhead cable kit. • Provide and insrAl a 8 port/1 1 hour voice mail system. • Remove existing Option 61 system for return to Nonel per Meridian Select Marketing Program terms and conditions. • , Provide cutover coverage for 1 st day of service. s9603-053 SS1022492 EXHIBIT A 0001/SO`V Annex, Page 1 of 2 r1 �J r 1 LJ PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF HU 71NGTON BEACH ("CUSTOMER") SCOPE OF WORK ANNEX (Continued) CUSTOMER $tali: • Provide access (conduits, trays, concrete bores) for all cabling to be completed other than from the switch to the MDF • provide cable records with information on cable number, floor plan reference, riser/distri- bution pair, etc. • Provide equipment rooms which meet the NORTEL-supplied environmental considerations • Provide the following equipment: Music -on -Hold Source UPS System CSU's All Telephone sets and other Peripheral equipment not described in Annex 1. S9603-053 EXHIBIT A SS1022492 00011SOW Annex, Page 2 of 2 • • • t Q4-•-11-L8 12:29P11 F.08 • • • • PURCHASE & MAINTENANCE AGREEMENT NORTEL CON%fMC,ATIONS SYSTEMS INTC. ("NORTEL") CITY OF HUNTTNIJTON BEACH ("CUSTOMER") PROJECT SCHEDULE ANNEX (PBX SYSTEM) The following is a schedule of dates applicable to the installation of the System, and a list of some key responsibilities for actions necessary to meet those dates. THIS SCHEDULE IS SUBJECT TO AND DEPENDENT UPON NORTEL AND CUSTOMER COORDINATING THEIR EFFORTS TO MEET EACH DATE. FAILURE TO MEET ANY DATE MAY CAUSE A DELAY LN OTHER DATES AND THE SCHEDULE AS A WHOLE. A. Initial Customer meeting to discuss project plan and database design. 04/15/96 B. Customer shall provide i+:tters of agency to each appropriate telephone operating company requesting those companies to acccr-t NORTEL as the Customer's agent for matters pert;unirg to the installation of the System. N/A C. Customer shall provide floorplans with locations of station sets c1carly marked. Each location shall be individually numbtrtd. NiA D. NORTEL shall specify the envinonmentals, power turd physical space requirements for the room where the switch component of the Hardware will be located ("the Switchrootn"). NIA E. Begin database collection. N/A F. Complete database collection- N/A G. Customer shall have the installation Site avaiable to begin cabling. All requirements for aceass such as boring, conduits, raceways, trenching, end other rights of way must be complete. NIA H. Customer shall have the Switchroom complete and available in accordance: with the environmental standards provided. Commercial power must be available as well as ground and air conditioning, NWA 1- Final DWE for System tnd slation Icvcl database changes. Customer must sign off on collected database. 04/30/96 J. Final date for Hardware nlodiftc£+tions ("Firm ConSgt:raiop. Date'). 04/30/96 K. NORTEL shall deliver the switch component of the Hardware to Lhc Sim and move it to the Switch- 05/03/96 MOM. L. Customer shall provide detai[ed cable records showing each pair on the Main Distribution Frame ("MnP') and which pair NORTEL should use for all sets noted on the floorplans (if NORTEL is using existing cable). N/A M. The final Installation of do Hardware and Software will commence at 5:01pm on this dale. 05/05/96 N. Completion of Instullado7 will be on this date. 05/05/96 This date schedule is contingent upon Customer signing this Agreement and providing requested credit information by March 29, 1996. Changes to this schedule may result in additional charges to the Customer and MUST be mutually agreed to by both parties. S9603.053 SS/a30795 0001/ProjSS Annex EXHIBIT B t • i PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF HUNT I ;T!N_ BEACH ("CUSTOMER") PAYMENT SCHEDULE ANNEX (SYSTEW The Price shall be due as follows: Event 25% of the Price within thirty (30) days of the effective date of this Agreement. 75% of the Price within thirty (30) days of the date all items of the Hardware and Software have been installed (the "Completion of Installation"). S9603-053 SS/022492 EXBIBIT C Amount $29,361.00 (25%) $88,084.00 (75%) 0001/PSS Annex • • • t • • PURCHASE & MAINTENANCE AGREEMENT • NORTEL, COMMUNICATIONS SYSTEMS INC. ("NORTEL") IT QE_HUNTING,70N REACH ("CUSTOMER") HARDWARE/SOFTWARE ANNEX 0 Cabled Stations 0 Prewires Quantity Equipment Code D] bcription I SYI016A MERIDIAN I OPTION 61C SYSTEM AC 1 NT8D2IAB RINGING GENERATOR AC I NT8D64CC EARTHQUAKE BRACING KIT (4 MOD COL) I NT8D63AA OVERHEAD CABLE TRAY KIT 1 QPC414 NETWORK CARD I NT8D46A] SYS MONITOR TO UPS(BEST) CABLE 45 FT I NTT2K08GH35 M2008 STANDARD BUSINESS W/DISPLAY ASH 1 AS 1182 PRE-PRINTED FEATURE KEY CAP PKG I AS1082 MERIDIAN MODULAR TELEPHONE USER GLIDE 1 NT8D93AJ 2 PORT SDI I/O TO DTE/DCE CABLE 16F F 2 NT8D93AW 2 PORT SDI UO TO DTE/DCE CABLE 48FF 1 NTIR03FV EXTENSION CABLE, 25 PIN D-SUB 2 AS 1061 PRI PACKAGE 2 NT6D80AB MULTI -PURPOSE SERIAL DATA LINK 1 S Y7020A MGM MOD EC 4-24 PT 11-100 HR AC 1 AS7091 VP8 CARD - FLEXIBLE ASSIGNMENT 6 P0741311 MERIDIAN MAIL VOICE MSG USER GUIDE 4 NT8D02Ei% DIGITAL LINE CARD 3 NTSD09AK ANALOG MESSAGE WATFING LINE CARD 3 NT8D15AK. E&M TRUNK CARD 5 NTSD 14BB UN %TRSAL TRUNK CARD I NT8D 16AB DIGTI'ONE RECEIVER CARD 2 NT6D66D,k 48 NIBYTE CALL PROCESSOR CARD I NT8D73A] LNITER-CABLNET NETWORK CABLE 6 FT I AS7013 14LM SINGLE TERMINAL ACCESS PACKAGE 2 NT8D85B3 NETWORK TO PE CABLE 2 FT 2 NT8D79A:g PRI/DTI TO CLOCK CONTROLLER CABLE 2 FT ? NTSD79AD PRIIDTI TO CLOCK CONTROLLER CABLE 6 FT - 1 NT8D91 AF NETWORK TO CONTROLLER CABLE 10 FT 8 N7TND27AB MSDL TO I/O PAIr'EL CABLE 6 FT 1 NTND26AA MSDL DCHI WTERFACE CABLE 6FT 2 N79DI8AA MODULE SIDE COVER 2 A0383526 DEC 520 TERMINAL I IPC30OF REMOTE MAINT MODEM 4 NTNTD26AA MSDL TO D-CHANNTEL CABLE 1 NTTSM04TA0101I C COOK 4 CHANNEL ANNOUNCER . 1 1 93024 78210 EPSON FX 870 PRINTER SERIAL INTERFACE CARD S9603-053 SS/022493 0001/H/S Annex, Page 1 of 2 EXHIBIT D • • PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF HUNTINGTQNj BFACH_ ("CUSTOMER") HARDWARE/SOFTWARE ANNEX (Continued) The features and servio.s which the CUSTOMER shall have available at Cutover are listed below and shall operate substantially as those features are described, where applicable, in the "Features and Services Description" portion of Northern Telecom Practices, a copy of which shall be delivered with the System. The functional description and manrier of performance of such features and seevice may change from time to time as the result of corrections or improvements. Included in this Agreement is Customer's Right To Use ("RTU") Northern Telecom Software up to 0 Terminal Numbers ('TN's"), 8 Meridian Mail ports and NIA Digital Subscriber Loops ("DSLs"). Expansion beyond the specified level may require payment of additional RTU fees. Quantily Equipmetat Code Description 3 SW0000G RTU&T-RM AN I RELEASE 21 BASE S/W 1 SWO028A RTU/FAST TDS 3 SWO050B RTU/NTETWORKING 3 SWO051B RTU/ISDN NETWORKING 3 SWO052C RTU/PRIVATE ISDN NETWORKING 3 SWO059D RTU/NETWORK MESSAGE SERVICES 1 SWO221C RTU/ACD/MESSAGE PROCESSING 1 SW700OF RTU/MERIDIAN MAIL RE1 10 BASE SW 1 SW7008 RTUPNETWORK MESSAGE SERV SOFTWARE 8 SW7063 RTU/MM FULL SERV PORT LICENSE FEE 2 SW0221C RTU/ACD MESSAGE PROCESSING S9603-053 SS/022493 0001/H/S Annex, Page 2 of 2 • • • EXHIBIT D nnrtharn . • rtt tctacnm ADDEND MERIDIAN SOFTWARE LICENSE NORTHERN TELECOM INC. ("NTI") TELECOMMUNICATIONS PRODUCT'S THIS LEGAL DOCUMENT IS A LICENSE AGREEMENT (^LICENSE") iIETWEEN YOU, THE ENU-USER ("CUSTOMER") AND NORTHERN TELECOM INC. ("h7l"). BY OPENING THE SEALED DISK PACKAGE WHICH CONTAINS THE SOFTWARE DISKET E(S), OR BY EXECUTING A CONTRACT FOR PURCHASE OF A SYSTEM WHICH INCORPORATES THIS USER SOFT1tEXRF, AGREEMENT, YOU. THE CUSTOMER, ACRES TO BE BOUND BY THE TERMS OF THIS LICENSE. Subpa w the terms bmrvinef ac swat filth. Nil graars to CUSTOMER ani/ar Ta fir"eatatlYea, with It 'anal to know," ■ par OVIA), ttoa-Cxalusive timn3e W to use certain Liceaacd Software, pprropriotarry to N'TI cc its suppliers. eootAinod " an inugxnl pert of the Hsrdwate; trod (2) to i.Wl and rise each item of Licensed Sohwwc not as integral Part of the Hsrdwsac; and (1) to use the associalad documentetion. CUSTOMER is Wr�antsd no tide er ownership rights, in or to the Lietascd Schwan. in whoic or if) part, cad CUSTOMER acknowIMSes thu title to and allGop yriyhU. patents, trade secrais sadlor nay other iutslleetual TeoPerty rights to and in all attcb Litxased Softwwe and assaciaud dotatmLtstiWoa are; and dial] remain the properly of PM und/ar NM's TUem The right to use Licensed Software may be restricted by a menatue of usage of oppltcstioos hasod upon number of Lines, aumbcr of Aorta, number of le mitud numban assigned. numbs of risen, OF soma sirui ttr Rtawure. EXPOnaion beyond the trP96fiiad ULgft love] may esquire payamat of no imaemcatd charge Or ROOhcr bean fen. NT1 cnas7dars the L1ctosed Software to oor:tan 'wade aacreu' of NT1 andlariu nrpplius. Such 'tradc secrets' include, without limitation thueio, the specific design. structure and logic of individual Licensed Soflwaro programs, their intsnuniings with other porticos of Lotesnd SaftwAre, both mtcrual smd axter4al. and the progmtrutting techniques employed thercm. In Ceder to m►inttia the 'trade sarsat' sxAtus of the infermstsou contained within the Licensed Software, the Lccuacd Software is boing delivered I* CUSTObfER in objact code form only. \TI or aov of its suppLars Wdiug Ray imtalletn„al property righu is any licensed S`ohware, and/or Loy third party owning Lay halrlleatAI ptvperty rights in software from which the Licensed Software was drsive4, are intended third party beneficiaries of this Lieensc. All granu of rights to use iatellcetud property intended to be accomplished by this License are explicitly stated. No other gruts of such rights shall be inferred or shall amm by rrnpliusajon. CUSTOMER warranu to NM that CUSTOMER is mot Purchasing the rights jpanted by this lixase in anticipeuion of rewRiing thou notf. CUSTOMER shall: a Bold the Licalued Saftwme in toaCrdcocn for the benefit of NTI and/or Vn's suppliers Cuing tto Ices a degree of care than if urr-s to protect to owe mast confidcmiLl and vsluablc information; Rind • Kelp L current record of the location of each copy of L.ictnscd Software made by it; and • L'se each COPY of Licensed Soflwue Daly On ■ single CPU ar a time ((Or Lhis purpose. single CPU aY.al include Iyocros with redvadaat processing units): and • Affix rn C4A copy of Licctued Sofewue made by it, in the same form and location. a reproduction of the copyright Lobe-f, trsdcmariu, and all other proprietary legends Led/cc logos of NTl And/or hT1's suppliers. appesriog oo the original COPY of such Lcensed Software delivered to CUSTOMER; and retain the sale without alteration on all original ropier; aid • lassie instructions to oath Of its outhoriUd ethtplayecs, agents. And/or reprasentwves to whom Licensed Software is disclosed, sdvieiLg them of the confidantisl mature of such Litzosod Sofiwsre and to provide thorn With a summary of the !°Qwmff ens of ibis Ucoose; and • Roturm the Licetuod Satlsran wind all copies through an Authorized Aistributor to N` l at such saw s, CfJSTOMF.R ehooaea to permahaorly Chase using A CUSTOMER sWI not: • Use Licensed Schwan (i) for any purpose other than CUSTOMER's own internal huaittcss purpoaee and (nil other tiara as provided by that LCenae; or • Allow anyone other than CUSTOMER'a omploypcs, agents and/or representatives with a 'fired to know- to have physical becosa to Lieerrsod Software; or • Make any copier of Licensed Software except such timired number of abjeef code copier in machicc readable form only, u may be retsodably n6M&Wy for execution ar AfCWvAl purpn as Only; of • Make any Modifications, echaaaemants, adrtFLslioos, or Irmulatiom to or of Linsasod Sahware, except as may result from those CUSTOMER intwf= oat with the Licensed Software associo d with normal use aed expWwd in rho axmx:Wed documtdsLion: tr Attempt to ravarso oaginmr, diseaaambie. rcwi'rsc trsoslsie, decompik. or in any oehor manner decode Lien nsad Soh ware, i n onkr to derive the aowce. Code form cc for any other n soon : or • Make full or partial copies of ,oY dowrnootation Or odhtr similar priated or tnaehiine•roadable matter providtd with Ucanred Software unleas the same has been sttpphed to a form by NTI m1coded for periodic r,e.neaduraion of parue copsu; at Export a se-txpm Iaeensad Soflwue Lad/ar ujoe wed docxthaeaLmnan from the rhny states of the United Sums aid the Disenct of Coiumbha • NOTE: notwridutabding the above reatfictious. if Ctutacm has liccosad the Liceasad ScAware Utdcr p 'into license' option u Of forth in Cusiomet's Purchase Agrasni-oat, Customer is authoriud to Brake a limited auhtbcr of copiaa of dm Licensed Software Lad documcawion to support rdditiodol umn as spoetferd in Cusuuaer's Purchase Agreemaar. CUSTOMMIZ may assign Collectively its rig.�u under this License to any aubaaquant owytr of the Hardware, but not otherwise, subject to the payrnazt of the them current license fcc for new users, if any. No such Lasisarnent shall be valid until CUSTO!N13R (1) has dclsgated All of its obligrioos under this License to the sasiStim; and (2) has oUsinad from the assignee an Uaooadivanai vmuto usumpuoc of all welt oblituions: and O) has provided NTI • copy of such sasigamept delegation and auumpboo: and (4) has transferred phyucA.l pmk"oa of all LhCcnaed Schwue and all LuOmmbed docttahsataaion to the assiggnee and destroymd all arciuvsl mpg+ Except as provided. neither this L�eaate nor any rights acquired by CUSTOMER through this License are assignable, Any ,attempted wiginment of riou ltadlor tranafcr of LirxEud Software not;gcrirecdly &Ilawrd shall be void and Conclusively presumed a material breach of dui 1.scanse. If N'TI (I) claims a mmouisl breach of this Limose, and (ii) provides written notice of such claimed muerid hoach to CUSTOMER and (ui) observes that awch tlunrcd malarial breach remains urcorteard and/or uamitigatod trxxc than thirty (30) days following CUSTOMER:s ramipt of v.nuca aouor mccifyin in reaaooabl• dslail the tlaturc of the claimed mucrial breach, than CU TOMER aekgawlcdgcs that this Ltccme may be Awricdiatoly ter,rninaud by N n and CUSTOMI±R further a:krnowledges that any turn Icmuc tion shall be without prejudice to any ocher rights and remedies that 1;T1 may have at law cc in equity. F-XPRM L %ITTE15 WARRAti 'IFS FOR ANY ITEM OF LICEIXSED SOFTWARE, IF ANY, WILL BE SOLELY THOSE GRANTED DIRECTLY TO CUSTONEk BY DISTRIBUTOR AS DESCIUDED IN THE Bony OF THE AGRUMff-!YT TO WHICH THIS LICENSE IS ATTACHED OR, IN THE CASE OF LICENSED SOFTWARE DISTR]SUTED IN A SEALER DISK PACKAGC, THOSE WHICH APPXAR AT THE LN'D OF THIS LICENSE AGREEMENT. OTHER THAN AS SET FORTH THEREIN, THIS LICENSE DOES NOT CONFER OR CRANT ANY WARRANTY TO CUSTOMER FROM OR BY NTI; THE UCLNSED SOFTWARE IS PROVIDE.] BY NCTI "AS IS" AND WITHOUT WARRANr'TV OF ANY KIND OR NATURE, WRITTEN OR ORAL, EXPRESS OR IMPLIED, INCLUDING (WITHOUT LIMITATION) THE IMPLIED WARRANTIES of MERCHANTABILITY AM) OF FITNESS FOR A PARTICULAR PURPOSE. THIS LIMITATION OF WARRANTIES WAS•.& MATERIAL FACTOR IN THE ]ESTABLISHMENT OFTHE LICENSE FEE CHARGED FOR EACH SPECIFIC ITEM OF SOFTWARE 1.,1C ltsED. IN NO EVENT WILL NTl AND/OR N-I-IS SUPPLIERS AND THEIR DIRECTORS, OFFICERS, EMPLOYEES OR ACE`tTS BE LIABLE TO OR THROUGH CUSTOMER FOR INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES OF ANY KIND, INCLUDING LOST PROFITS, LOSS OF BUSINESS OR BUSINESS INFORMATION, BUSINESS INTERRUPTION, OR OTHER ECONOMIC DAMAGE, AND FURTHER INCLUDING INJURY TO PROPERTY, AS A RESULTOF USE OR [INABILITY TO USE THE LICENSED SOFTWARE OR Exhibit • • • EXHIBIT 2 • NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN NORTEL Communications Systems Inc. (NCS) has a history of assigning top priority to a Customer disaster and is dedicated to achieving an expedient recovery to pre -incident status. The modular design of Northern Telecom's family of switches and the high level of ongoing production in Raleigh, North Carolina, Santa Clara, California and Ontario, Canada provide imme- diate access to the equipment required for a Customer in need. In an emergency situation, NCS can obtain essential hardware from sources such as: Finished Goods Stock - Materials that have completed the manufac- turing process and are available for configuration and shipment. • Production Line Work in Progress.- Materials that comprise a com- pleted system, which could be expedited to Finished Goods; and/or • Product Shipped But Not Installed - Pre -installation stage hardware based at another Customer site, which, through negotiation, can be di- verted for the emergency. NCS is the largest telecommunications equipment service company in California. NCS' parent company is Northern Telecom. This is significant because it means NICS has the size and resources necessary to respond quickly to a disaster of any type. NCS will work closely with the Customer to develop a Disaster Recovery Plan. NCS' commitment to supporting the Customer's Disaster Recovery Plan will be subject to the terms and conditions of the Service Agreement. The Service Agreement should be given consideration prior to the finalization of a Disaster Recovery Plan. In the event of a disaster, it is the responsibility of the Customer to notify NCS' Emergency Technical Assistance Service (TAS) at 1 800-735-5980 as soon after the disaster as possible and communicate the severity of the situation to the Center. The Technical Assistance Service Representative will immediately activate the Disaster Recovery Team for a prompt response to your needs. Exhibit F 081194BP Page 1 C: • NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) 46 Fires, floods, tornadoes, earthquakes, lightning, hurricanes... Disasters strike in many ways, but all can be equally devastating. When a disaster strikes your facility and cuts service, the results can be far reaching and often frightening. Critical links to medical, fire and police facilities are severed. Separated family members cannot communicate. Businesses lose telephone -generated revenue that can reach millions of dollars. Following a disaster, nothing will matter more to your business than re- storing service - a potential lifeline - quickly and efficiently. In the unfor- tunate event that you should experience_ a physical disaster which results in the complete loss of service to your Meridian I switching equipment, NCS will, upon notification, immediately activate the Disaster Recovery Plan. NCS and Northern Telecom have a well defined and proven internal process that is designed to ensure rapid emergency notification, and that establishes lines of communication and outlines responsibility and accountability for all procedures. A quick response to telecommunications emergencies results from contacting the key NCS personnel who oversee and coordinate the program from start to finish. The Disaster Recovery Team, made up of representatives from each major function within the division, is placed on alert and an on -site coordinator is immediately dispatched to the site to assess the extent of damage to the switch and facilities. The on -site coordinator communicates his assessment to the Richardson coordinator who assembles all team members to formulate the Detailed Recovery Plan. Each team member has access to appropriate resources to direct toward the recovery effort. The primary objective of the Disaster Recovery Plan is to restore your Northern Telecom switching equipment to complete operational status as soon as possible. In many cases, a temporary MSL-1 switch can be activated to offer. interim dial tone to critical departments until the entire system can be replaced. NCS can provide experts to help assess damage to any equipment component of a network or node, including damage caused by heat, water, lightning and chemicals. NCS' engineers can help expedite reroutes and network redesign to minimize service disruptions. r 081194BP Page 2 Exhibit F • • • • NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) Responsibility Customer - NCS' TAS Representative TAS Disaster Recovery Team Members: TAS (NCS and NTI) Service Area Manager (NCS and NT7) Operations (NCS and NTI) Engineering (NCS and NTI) Manager, Installation and Commissioning (NCS and NTI) 081194BP 1. Notifies NCS' Emergency Technical Assistance Service (TAS) at 1-800-735-5980 as soon after the disaster as possible and communicates the severity of the situa- tion. 2. Immediately notifies the Director, NCS TAS. 3. Immediately activates the Disaster Recov- ery Team from NCS and NTI. 4. Assembles and identifies the on -site coor- dinator who is' immediately dispatched to Customer site. 5. Directs the immediate shipment of emer- gency temporary equipment to Customer site. b. Identifies installation and commissioning personnel who are immediately dis- patched to Customer site. Exhibit F Page 3 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) NCS' On -Site Coordinator 7. Determines the extent of damage and communicates their assessment to the Disaster Recovery Team. 8. Directs the 24-hour-per-day, 7-days-per- week installation and commissioning activity of the emergency temporary equipment until basic telephone service is restored. 9. Directs the 24-hour-per-day, 7-days-per- week installation and commissioning activity of the replacement equipment until permanent service is restored. The following assumptions .are taken into consideration in the implementa= tion of the Disaster Recovery Plan: • Complete destruction of all Meridian 1/SL-100 Components, cables, and MDF. Station equipment is reusable. Response times are contingent on availability of materials, transporta- tion, disaster site facilities and/or other contractual obligations. • Customer is responsible for maintaining current back-up software (image) on magnetic tape off site. NORTEL Communications Systems Inc./Northern Telemn recommend a monthly archival practice. 4P In case of multiple disasters, hosnitals. medical centersand other public health and safety facilities are given priority. Customer assumes all time, materials, and travel and living expenses incurred by NORTEL Communications Systems Inc./Northern Telecom personnel involved in the recovery effort. • All decisions affecting Customer's site are made jointly between Customer, N(DRTEL Communications Systems Inc. and Northern -Telecom. 081194EP . Exhibit F Page 4 46 • • NORTEL. COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERYPLAN (Continued) The key to successful recovery from a disaster is Customer's immediate noti- fication of the NCS Emergency Technical Assistance Service (TAS) at 1-800- 735-5980. The severity of the situation must be accurately described to the center. The Technical Assistance Service Representative will immediately activate the NCS/NT1 Disaster Recovery Team for a prompt response to your needs. Disaster Recovery activities are billable at then current time and materials rates, 08119413P Page 5 Exhibit F 1 2.1 3. NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) DISASTER PLAN 1.1 The Disaster Plan is a series of actions to be taken in the event of total destruction or extreme physical damage to an SL-1. Such damage could result from flood, fire, explosion, earthquake, storm, or other events which could cause damage beyond repair by ordinary methods. The Disaster Plan applies to situations where the application of normal maintenance procedures can- not result in the prompt restoration of service. The objective of the Disaster Plan is the restoration of service in the shortest possible time. 3.1 Special equipment is maintained for use in the event the Dis- aster Plan is put into effect. This is an SL-1 switch located at the Training Center. It is available for immediate use by the Field Service and Support Department if it is needed for a customer who is without telephone service as the result of a disaster. 3.2 Approval for shipping the emergency switch must be obtained from the Vice -President, Field Service and Support. It should be requested by the Region Qperations Manager of the Region in which the disaster occurred. Should the Vice -President, Field Service and Support not be available, it may be released for ship- ment by one of the following: Vice -President, Sales and Service Vice -President, Marketing President, Business Communications Group 081194BP Exhibi t F Page 6 • • r U NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) 4_ DISASTER PROCEDURE 4.1 The Disaster procedure requires a number of actions which have been' determined as effective in restoring telephone service to the customer as quickly as possible. These actions are to be carried out any time the Disaster Plan is put into effect. 4.2 From the time a report of a disaster is received, there are several positions within the Company which begin working closely toward the objective of restoring service: Vice -President, Service Region Operations Manager Manager of Technical Assistance Center Materials Manager Service Area Manager 4.3 Anyone receiving a report of a disaster is to relay the informa- tion immediately to the Operations Manager. This is the point at which all activity which involves the Disaster Plan begins. The Operations Manager begins the process by sending a Service Area Manager and one or more technicians to the site of the disaster. The Service Area Manager will make an assessment of the damage and report the extent of the damage to the Branch Manager. The Operations Manager is to inform the Vice President, Operations of the situation. The Vice President evaluates the information and advises the Operations Manager, making a recommendation as to whether or not the Disaster Plan should be activated: 4.4 The responsibility for making the decision to activate the Disaster Plan belongs to the Operations Manager. The decision should be based on an evaluation of all available information, and giving some consideration of the cost to the Company. 081194BP I ExhibitPage 7 I' NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN . (Continued) 4.5 If the decision is to activate the Disaster Plan, the Operations Manager immediately contacts the Vice -President, Service, for release of the switch. Written confirmation of the action is then made by TWX message to the following: President Vice -President, Service Manager of Technical Assistance Center The TWX message must contain the name of the customer, the location, and a brief statement of the assessment of damage. 4.6 The Operations Manager contacts the Manager of TAC by tele- phone and obtains _a commitment for the appropriate number of engineers to be sent to the site. 4.7 The Service Area Manager instructs the Materials Manager to expedite shipment of the emergency switch. 4.8 As these activities are proceeding, the Service Area Manager at the site prepares a list'of materials that will be needed to restore service. Materials available at the local warehouse are brought to the site immediately. The remaining materials are requested from the Materials Manager, who expedites shipment. The Service Area Manager has the following additional responsibil- ities: Notify the associated Telco of the requirements necessary for restoring service. Serve as liaison with the customer while service is being restored. Coordinate overall activities with the on -site foreman. Keep the Vice President, Service informed of the progress of the activities. • 081194BP Exhibit P Page 8 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) 4.9 After malting an assessment of damages and reporting to the Service Area Manager, the on -site foreman assumes the follow- ing responsibilities: Conduct clean-up operations. Furnish single -line telephones for temporary service. Supervise technicians involved in restoring service. The Disaster Plan continues in effect until full service has been restored. The Service Area Manager then sends a TWX message to those outlined in paragraph 4.5, advising them of completion. 0 OS1194BP Exhibit F Page 9 AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND NORTEL COMMUNICATIONS SYSTEMS, INC. FOR TELECOMMUNICATION SYSTEM THIS AGREEMENT, made and entered into this day of , 19 , by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY", and NORTEL COMMUNICATIONS SYSTEMS, INC. ("NORTEL"), a corporation, hereinafter referred to as "CONTRACTOR." WHEREAS, CITY desires to engage the services of a telecommunications systems contractor to install such system at the Central Library, at 7111 Talbert Avenue, Huntington Beach, CA 92648; and Pursuant to documentation on file in the office of the City Clerk, the provisions of HBMC Chapter 3.03 relating to procurement of professional service contracts has been complied with; and CONTRACTOR has been selected to perform said services, NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows: WORK STATEMENT CONTRACTOR shall provide all services as described in the Scope of Work Annex, attached hereto as Exhibit "A" and incorporated into this Agreement by this reference. Said services shall sometimes hereinafter be referred to as "PROJECT." CONTRACTOR hereby designates , who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator ("Telecommunications Coordinator') to work directly with CONTRACTOR in the performance of this Agreement. MnorteV5130l96 3. TIME OF PERFORMANCE CONTRACTOR will use all commercially reasonable efforts in performance of this Agreement. The services of the CONTRACTOR are to commence as soon as practicable after the execution of this Agreement and all tasks specified in Exhibit "A" shall be completed according to the schedule attached hereto as Exhibit "B" and incorporated herein by reference. These times may be extended with the written permission of the CITY. This schedule may be amended to benefit the PROJECT if mutually agreed by the CITY and CONTRACTOR. 4. COMPENSATION In consideration of the performance of the telecommunication services described herein, CITY agrees to pay CONTRACTOR a fee not to exceed One Hundred Seventeen Thousand, Four Hundred and Forty -Five Dollars ($117,445), pursuant to the payment schedule as described in Exhibit "C" attached hereto and incorporated herein by reference. 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit 'A" or changes in the scope of services described in Exhibit "A," CONTRACTOR will undertake such work after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. No change shall be allowed if the cumulative effort of such change together with all previously approved changes to the scope of service decreases the Agreement fee by more than twenty (20) percent. Any change involving deletion of Exhibit "D" equipment previously delivered to the installation site shall require the CITY to pay to CONTRACTOR a restocking charge equal to ten (10) percent of the price for such equipment. As an exception to the aforementioned terms, restocking charges will not be applied to the CITY's return of the telephone instruments to CONTRACTOR. 2 JMP1WnorteV5M/96 6. METHOD OF PAYMENT A. CITY agrees to pay CONTRACTOR the price of the Equipment identified in Exhibit "D." CITY shall pay CONTRACTOR twenty-five percent (25%) of the price of the equipment within thirty (30) days of the effective date of this Agreement. The balance of the price shall be paid as described in the payment terms described in Exhibit "C" of this Agreement. B. Delivery of work product: A copy of every technical memo and report prepared by CONTRACTOR shall be submitted to the CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion_ Any such product which has not been formally accepted or rejected by CITY shall be deemed accepted. C. The CONTRACTOR shall submit to the CITY a milestone acceptance form (MAF) and invoice for each progress payment due in accordance with Exhibit "C". Such MAF shall: 1) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of the CONTRACTOR's firm that the work has been performed in accordance with the provisions of this Agreement; and Upon submission of any such invoice and MAF, if CITY is satisfied that CONTRACTOR is malting satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If the CITY does not approve an invoice, CITY shall notify CONTRACTOR in writing of the reasons for non -approval, within seven (7) calendar days of receipt of the invoice; and the schedule of performance set forth in Exhibit "B" shall be 3 JMP/k/nateU5/31 /96 LJ • suspended until the parties agree that past performance by CONTRACTOR is in, or has been brought into compliance, or until this Agreement is terminated as provided herein. D. Any billings for job change orders authorized by CITY shall be invoiced separately to the CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the job change order requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 7. DISPOSITION OF PLANS ESTIMATES AND OTHER DOCUMENTS CONTRACTOR agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notices, calculations, maps and other documents, shall be turned over to CITY upon termination of this Agreement or upon PROJECT completion, whichever shall occur first. In the event this Agreement is terminated, 'said materials may be used by CITY in the completion of PROJECT or as it otherwise sees fit. Title to said materials shall pass to the CITY upon payment of fees determined to be eamed by CONTRACTOR to the point of termination or completion of the PROJECT, whichever is applicable. CONTRACTOR shall be entitled to retain copies of all data prepared hereunder. B. INDEMNIFICATION AND HOLD HARMLESS CONTRACTOR shall indemnify and save and hold harmless CITY, its officers and employees, from any and all liability, including any claim of liability and any and all losses or costs arising out of bodily injury or damage to tangible property due to the negligent performance of this Agreement by CONTRACTOR, its officers or employees. 9. WORKER5 COMPENSATION CONTRACTOR shall comply with all of the provisions of the Workers Compensation Insurance and Safety Acts of the State of Califomia, the applicable provisions 4 JMPWnodeV&4M of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless CITY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against CITY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONTRACTOR under this Agreement. CONTRACTOR shall obtain and furnish evidence to CITY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease, policy limit. 10. INSURANCE In addition to the workers compensation insurance and CONTRACTOR's covenant to indemnify CITY, CONTRACTOR shall obtain the following insurance covering the PROJECT: A. General Liability Insurance A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify CONTRACTOR, its officers, agents and employees, while acting Within the scope of their duties, against any and all claims for bodily injury or damage to tangible personal property due to negligence of the CONTRACTOR arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name CITY, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONTRACTOR's insurance shall be primary. 5 JMP/k/norteV5/30M 11. CERTIFICATES OF INSURANCE ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, CONTRACTOR shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy is currently in force and shall promise to provide that such policies will not be canceled or modified without thirty (30) days prior written notice of CITY. CONTRACTOR shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. The requirement of 30 day written notice of cancellation on the certificates and endorsements under Section I (C)(4) of Resolution No. 6277 is hereby waived. _ The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under the Agreement. CONTRACTOR shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of CONTRACTOR's insurance policies, naming the CITY, its officers and employees as Additional Insureds shall be provided to the City Attorney for approval prior to any payment hereunder. The certificate of insurance for general liability shall show the CITY, its agents, officers and employees as additional insured. 12. INDEPENDENT CONTRACTOR CONTRACTOR is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONTRACTOR shall secure at its expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONTRACTOR and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 6 JMP/klnorteV614196 13, MATERIAL BREACH All work required hereunder shall be performed in a goc;t and workmanlike manner. If any material breach of this Agreement shall continue for more than 30 days after receipt by the breaching party of written notice from the aggrieved party stating in reasonable detail the nature of the breach, then the aggrieved party shall be entitled to avail itself, cumulatively, of any and all remedies available at law or equity, including termination hereof, except as specifically limited elsewhere in this Agreement. If CITY is the aggrieved party then CITY may suspend payment of any sums due hereunder for so long as CONTRACTOR's. breach continues uncorrected. If CONTRACTOR is the aggrieved party then CONTRACTOR may suspend performance of any or all of its obligations hereunder for so long as CITY's breach continues uncorrected. A condition precedent to any legal action by either party to enforce or interpret any right or obligation under this Agreement shall be the receipt by the other party of notice, at least 30 days prior to such action, and which states with reasonable particularity the claimed breach or grievance. 14. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the supervisory work hereunder shall not be delegated by CONTRACTOR to any other person or entity without the consent of CITY. 15. COPYRIGHTSIPATENTS CONTRACTOR shall not apply for a patent or copyright on any item or material produced as a result of this Agreement, as set forth in 41 CFR 1-9,1. 16. CITY EMPLOYEES AND OFFICIALS CONTRACTOR shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the Califomia Govemmenf Code. 7 JMP/k/norteU6/4M 17. NOTICES Any notices or special instrE -ctions required to be given in writing under this Agreement shall be given either by personal delivery to CONTRACTOR's agent (as designated in Section 1 hereinabove) or to CITY's Fire Chief as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 ATTN: 18. IMMIGRATION TO CONTRACTOR: Nortel Communications Systems, Inc. 2400 Camino Ramon, Suite 100 San Ramon, CA 94583 ATTN: CONTRACTOR SHALL be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 19. ACCEPTANCE Upon completion of installation, acceptance testing will be performed in three phases, as follows: 1) 2) CONTRACTOR'S standard test procedures will be performed for CITY Telecommunications Coordinator, verifying operation "cut over of all components of the installed telecommunications system at each site. During the first business week following installation of each site, CITY Telecommunications Coordinator will perform end user testing to determine that the system performs in a satisfactory manner according to the manufacturer's installation specifications and the standard practices of the telecommunications industry. 8 JMPAdnorteU6/4196 3) Following satisfactory performance of the end user test, user reliability testing will be performed by the CITY Telecommunication Coordinator, with the assistance of CONTRACTOR, for a period of three (3) consecutive business weeks. During this period, end user will operate the system for their ordinary needs. Each telecommunication system will be deemed to have satisfactorily passed the reliability test if, during this period, the equipment and the software operate free from major failure. For purposes of this paragraph, major failure is defined as no dial tone, inability to make outgoing calls or inability to receive incoming calls for ten (10) percent or more of any telephone sets supported by any one system, with the exception of police, fire, lifeguard, public works and emergency services departments as to which there will be no minimum. If a system fails to pass any or all phases of the acceptance testing, CONTRACTOR shall correct the deficiency(ies) at its expense. The applicable phase testing shall be repeated until all three phases are satisfactorily passed. 20. RISK OF LOSS Risk of loss to the switch components of the equipment itemized in Exhibit "D" shall pass to CITY upon physical delivery of each such component to its respective switch room by CONTRACTOR. General risk of loss to any other portion of each system shall pass upon deliver of such portion to the CITY premises. After general risk of loss has passed to CITY, CONTRACTOR shall continue to be liable for (A) equipment shortages of terminal equipment until installation (contingent upon the CITY providing to CONTRACTOR a secured location) and/or (B) damage to losses to the equipment or scope of work due to CONTRACTOR'S negligence. Title to the equipment shall not pass to CITY until CONTRACTOR has been paid all amounts due for the equipment under this Agreement 21, HIPPING The Exhibit "D" equipment and system software as described in Exhibit "E" shall be shipped by CONTRACTOR to CITY in accordance with the delivery schedule specified in 9 JMP/k/norteM4196 Exhibit "B." CONTRACTOR will provide ten day notice to CITY of the scheduled shipment date for the switch component of each system. Freight expenses for said Equipment will be paid by CONTRACTOR. If the CITY rejects or cancels for good cause any product, CONTRACTOR shall bear all shipping charges relating to such product. If CITY has already paid CONTRACTOR for such product, CONTRACTOR shall refund such payment to CITY. 22_ MAINTENANCE CONTRACTOR shall perform maintenance services on the Equipment under the terms and conditions of this Agreement and service contract automatic renewal dated May 9, 1995 and all subsequent renewals. 23. NONDISCLOSURE Both parties acknowledge that information made available pursuant to this Agreement is confidential and proprietary to the other party and both parties agree to restrict the disclosure of such confidential and proprietary information to only those individuals who require the information to perform pursuant to the terms of this Agreement. 24. INSTALLATION SERVICES CONTRACTOR shall be responsible for unpacking and placement of the Equipment at the installation site. Installation of the Equipment to be installed will be performed by the CONTRACTOR at the prices specified in Exhibit "C," and with minimal disruption to the CITY'S day-to-day business operations. 25. FORCE MAJEURE Neither party shall be liable for delays, loss, damages or other consequences of acts, omissions or events beyond a party's control and which may not be overcome by due diligence, or caused by strikes or labor strife and unrest. 26. DOCUMENTATION CONTRACTOR shall provide CITY documentation to support the operations of the Equipment and Software in accordance with the Agreement without charge. CONTRACTOR grants CITY the right to duplicate such documentation for its internal use only. 10 JMP/klnorteMW96 0 27. WARRANTY A. CONTRACTOR warrants that CONTRACTOR possess good and Gear title to said Equipment and there are no pending liens, claims or encumbrances whatsoever against said Equipment. B. CONTRACTOR warrants that as of the date of shipment that: the Equipment incorporates all current manufactures' required engineering changes released to the general public; the Equipment qualifies for maintenance services by the manufacturers. C. CONTRACTOR warrants that the Equipment will be free from defects in material and workmanship and will conform to specifications for a period of one (1) year commencing at network cutover date. D. In the event any component part of the Equipment is or becomes defective by reason of material or workmanship during said period, and the CITY immediately notifies CONTRACTOR in writing of such defect, CONTRACTOR shall repair or replace the Equipment or component at no charge to the CITY. All replaced parts shall become the property of CONTRACTOR on an exchange basis. This warrant does not extend to any equipment that has been subject to misuse, neglect, accident, improper or unapproved installation, acts of God, power failure, or to equipment to which repairs or modifications have been performed by persons other than CONTRACTOR'S own or authorized service personnel, unless such repairs by others were performed with the written consent of CONTRACTOR. E. CONTRACTOR warrants that all services provided pursuant to this Agreement will be performed in a workmanlike manner in accordance with reasonable commercial standards. CONTRACTOR shall correct all services not performed if brought to CONTRACTOR'S attention in writing within the warranty period. F. CONTRACTOR warrants for a period of 365 days following receipt that the documentation provided pursuant to this Agreement shall be substantially free from errors. CONTRACTOR shall correct any document errors brought to its attention during the 30 day period following notification of found errors. 11 JMP/WrwrteV4rs 86 G. The warranties and remedies set forth above constitute the only warranties with respec-t to the system and the CITY'S exclusive remedies if such warranties are breached. The stated warranties are in lieu of all other warranties, written or oral, statutory, express or implied, including, without limitation thereto, the warranty of merchantability and the warranty of fitness for a particular purpose. CONTRACTOR shall not be liable for any incidental or consequential damages of any nature or any reason either before or after cutover. 28. EXCUSABLE DELAY A. Neither part shall be liable when delays arise out of a cause beyond the control and without the fault or negligence of either party. Such causes may include, but are not restricted to acts of God or the public enemy, government action or failure to act, fires, floods, earthquakes, epidemics, quarantine restrictions, strikes, freight embargoes, war, civil disturbances, work stoppage, power failures, laws, regulations, ordinances, acts of unusually severe weather. In such event, the party affected shall be excused from such performance on a day -for -day basis for the extent of such interference (and the other party shall likewise be excused from performance of its obligations on a day -far -day basis to the extent such party's obligations relate to the performance so interfered with). B. CONTRACTOR delay caused by the delays of subcontractors of CONTRACTOR shall be deemed excusable if the subcontractor's delay is beyond the control and without the fault or negligence of the subcontractor as described in this section. C. The party who has been affected by an excusable delay shall immediately give notice to the other party of such circumstances. 29. DISASTER RECOVERY Disaster recovery will be determined by the terms of the existing maintenance agreement between the parties for the location designated by this Agreement. A. in the event of a disaster or accident that impairs operation of the Equipment purchased under this Agreement, the CONTRACTOR shall use its best efforts to 12 JMP/k1norteU6/4/96 help the CITY restore operations as quickly as possible. Such services will be provided at the CONTRACTOR'S then prevailing rates. B. CONTRACTOR will provide Disaster Recovery services to Fire, Police, Lifeguard and Public Works sites first, and will prioritize remaining CITY sites in accordance with the Nortel Communications Systems, Inc. Disaster Recovery Plan attached hereto as Exhibit "F" and incorporated by reference. C. CONTRACTOR will provide name and telephone numbers (home and office) of emergency contacts to 30. CONTRACTOR PERSONNEL at cutover. CITY shall have the right to require in writing the CONTRACTOR to replace any of the CONTRACTOR'S on -site personnel in the event that the CITY reasonably determines such person is disruptive to the Project. The replacement shall be selected by the CONTRACTOR and approved by the CITY. The CONTRACTOR shall have up to five (5) days to make a replacement. 31. GRANT OF LICENSE CONTRACTOR shall grant to CITY a license to use certain computer software embodied in or associated with the hardware. The hardware and software are itemized in Exhibit "D". The software is provided to CITY pursuant to the provisions of the Software Sublicense, attached hereto as Exhibit "E". 32. CONTRACTOR'S DAMAGE LIABILITY Notwithstanding any other provisions of this Agreement, CONTRACTOR shall in no event be liable for any damages caused by the CITY'S failure to perform the CITY'S responsibilities or for any incidental, special or consequential damages (even if CONTRACTOR has been advised of the possibility of such loss or damage. 13 JMP/k/r*rte1/6/5M 33. WAIVERS No action or inaction by either party shall be interpreted as a `wavier" and no waiver shall be valid unless it is in writing and signed by the City Administrator. 34. ARBITRATION Any controversy or claim arising out of or relating to this Agreement or the breach thereof, shall be settled in accordance with the laws of the State of California. 35. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONTRACTOR and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONTRACTOR understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONTRACTOR. 36. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. REST OF PAGE NOT USED 14 JMPfldnorteV614196 • • 33. WAIVERS No action or inaction by either party shall be interpreted as a "wavier" and no waiver shall be valid unless it is in writing and signed by the City Administrator. 34. ARBITRATION Any controversy or claim arising out of or relating to this Agreement or the breach thereof, shall be settled in accordance with the laws of the State of California. 35. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONTRACTOR and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONTRACTOR understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY, and CITY shall not be liable for payment of any legal services expenses incurred by CONTRACTOR. 36. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. 37. LIMITATION ON LIABILITY Regardless of the legal or equitable basis of any claim or of actual notice, neither seller nor seller's suppliers shall be liable for (a) any incidental, indirect, special or consequential loss or damages, or (b) any damages relating to a claim made against customer by a third party except for indemnified claims described in Section 11. These limitations shall remain in full force and effect through any renewal of maintenance and service provided for in this agreement. 14 JMP/WnorteV6/20/96 38. ENTIRETY The foregoing, and Exhibits "A" through "F" attached hereto, set forth the entire Agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. NORTEL COMMUNICATIONS SYSTEMS, CITY OF HUNTINGTON BEACH, A INC. municipal corporation of the State of California By: print name Mayor ITS: (circle one) Chairman/PresidentNice President By. APPROVED AS TO FORM: print name ITS: (circle one) Secretary/Chief Financial 4 l` 11C City Attorney y�iL 41, Officer/Asst. Secretary - Treasurer U f INITIATED AND APPROVED: ATTEST: Fire Chief City Clerk REVIEWED AND APPROVED: City Administrator 15 J MPIklnor1eV6/4/96 • PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF F IINTINGTON BEA!QIi ("CUSTOMER") SCOPE OF WORK ANNEX NORTEI, shall: • Install the Hardware and Software listed in Annexes I and 2 at the following location: 7111 Talbert Avenue Huntington Beach, CA 92648 • Provide and install 64 digital ports for connection to existing digital sets. • Provide and install the following trunk or circuit ports to interface to the carriers and existing network: 35 COT 3 T-1 • Use existing database to program Option 61C. Any new Database changes will be provided at an additional charge via Job Change Order. • Provide and install 48 analog ports for use with customer provided analog sets, modems or fax machines. • Provide and install IPC 300 modem for remote maintenance. • Provide and install earthquake bracing. • Provide and install overhead cable kit. • Provide and install a 8 pon/1 l hour voice mail system. • Remove existing Option 61 system for return to Nortel per Meridian Select Marketing Program terms and conditions. Provide cutover coverage for 1 st day of service. 59603-053 EXHIBIT A SS/022492 0001/SOW Annex, Page 1 of 2 PURCHASE R MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEM IS INC. ("NORTEL") CITY OF HUNTINGTON BEACH ("CUSTOMER") SCOPE OF 'WORK ANNEX (Continued) CUSTOMER shall: • Provide access (conduits, trays, concrete bores) for all cabling to be completed other than from the switch to the MDF • Provide cable records with information on cable number, floor plan reference, riser/distri- bution pair, etc. • Provide equipment rooms which meet the NORTEL-supplied environmental considerations • Provide the following equipment: Masic-on-Hold Source UPS System CSL.`'s All Telephone sets and other Peripheral equipment not described in Annex 1. S9603-053 EXHIBIT A SS/022492 0001/SOW Annex, Page 2 of 2 0 V PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY QF H G,,TQN BEACH ("CUSTOMER") PROJECT SCHEDULE ANNEX (PBX SYSTEM) The following is a schedule of dates applicable to the installation of the System, and a list of some key responsibilities for actions necessary to meet those dates. THIS SCHEDULE IS SUBJECT TO AND DEPENDENT UPON NORTEL AND CUSTOMER COORDINATING THEIR EFFORTS TO MEET EACH DATE. FAILURE TO MEET ANY DATE MAY CAUSE A DELAY IN OTHER DATES AND THE SCHEDULE AS A WHOLE. A. Initial Customer meeting to discuss. project plar, and database design. 04115/96 B. Customer shall provide borers of agency to each appropriate telephone operating company requesting those companies to ft"Cf-t NORTEL as the Customer's agent for matters pertaining to the installation of the System- NIA C. Customer shall provide floorplans with locations of station sets clearly marked. Each location shall be individually nombered. NIA D. NORTEL shall specify the environmentals, power and physical space requirements for the room where the switch component of the Hardwtuc will be located ("the Switchroom"). NIA E. Eesin database Collection. NVA F. Complete database collection. NtA G. Customer shall have the Installation Site available to begin cabling. All requirements for access such a_s boring, conduits, raceways, trenching, and other rights of way must be complete. NIA H. Customer shall have the Switchroom complete and available in accordant with the environmental standards provided. Commercial power must be available as well as ground and air conditioning. NIA 1. Final Date for System tnd station level databasc changes. Customer must sign off on collected database. 04/30196 J. Final date for Hardware modifications ("Firm Configuration Date'). 04/30/96 K. NORTEL shall deliver the switch component of the Hardwarc to rho Site and move it to the Switch- 05/03/96 roc,m. L. Customer shall provide detailed cable records showing each pair on the Main Distribution Framc C`MDF') and which pair NORTEL should use for all acts noted on the floorplans (if NORTEL is using existing cable). N/A M. The final Installation of the Hardware and Software will commence at 5:01pm on this date. 05/05/96 N. Completion of tnswilation will be on this date. 05/05/96 This date schedule is contingent upon Customer signing this Agreement area providing requested credit information by March 29, 1996. Changes to this schedule may result in additional charges to the Customer and MUST be mutually agreed to by both parties. S9605.053 S5/030795 0001/ProjSS Annex EXHIBIT B • • PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF HUNTIN42TON_BEACH ("CUSTOMER") PAYMENT SCHEDULE ANNEX (SYSTEM) The Price shall be due as follows: Event 25% of the Price within thirty (30) days of the effective date of this Agreement. Amount $29,351.00 (25%) 75% of the Price within, thirty (30) days of the date all items of the Hardware and Software have been installed (the "Completion of $88,084.00 (75%) Installation"). S9603.053 EXHIBIT C SS/022492 00021PSS Annex PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") -CITY OE HUNTINCT N BEA ("CUSTOM-8R.") HARDWARE/SOFTWARE ANNEX 0 Cabled Stations 0 Prewires Quantity E ui mentCo-de DescriRtion 1 S'Y1016A MERIDIAN 1 OPTION 61C SYSTEM AC 1 NT8D2I AB RINGING GENERATOR AC 1 NT8D64CC EARTHQUAKE BRACING KIT (4 MOD COL) I NnD63&.A OVERHEAD CABLE TRAY JaT 1 QPC414 NETWORK CARD I NT8D46A] SYS MONITOR TO UPS(BEST) CABLE 45 FT I NT2K08G-H35 M2008 STANDARD BUSINESS W/DISPLAY ASH 1 AS 1182 PRE-PRINTED FEATURE KEY CAP PKG 1 AS 1082 MERIDIAN MODULAR TELEPHONE USER GUIDE 1 NT8D93AJ 2 PORT SDI UO TO DTF./DCE CABLE 16FT 2 N SD93AIV 2 PORT SDI UO TO DTFJDCE CABLE 48FT 1 NTIR03EV EXTENSION CABLE, 25 PIN D-SUB 2 AS 1061 PRI PACKAGE 2 NT6D80AB MULTI -PURPOSE SERIAL DATA LINK 1 SY7020A MM MOD EC 4-24 PT 11-100 HR AC 1 AS7091 VP8 CARD - FLEXIBLE ASSIGNMENT 6 P0741311 MERIDIAN MAIL VOICE MSG USER GUIDE 4 NT8D02EA DIGITAL LINE CARD 3 NTSD09AK ANALOG MESSAGE WAITING LINE CARD 3 NT$DI 5A-K E&M TRUNK CARD 5 NT81)14BB UNTVERSALTRUNK CARD 1 NT8D16AB DIGTTONE RECEIVER CARD 2 NIT6D66I),4 48 MBYTE CALL PROCESSOR CARD 1 NTSD73A:) INTER -CABINET NETWORK CABLE 6 FT 1 AS7013 MM SINGLE TERMINAL ACCESS PACKAGE 2 NT8D85BB NETWORK TO PE CABLE 2 FT 2 NT8D79A?B PRI/DTI TO CLOCK CONTROLLER CABLE 2 FT 2 NT8D79AD PRUDTI TO CLOCK CONTROLLER CABLE 6 FT 1 NT8D91AF NETWORK TO CONTROLLER CABLE 10 FT 8 N1ND27AB MSDL TO UO PANEL CABLE 6 FT 1 NTND26AA MSDL DCHII INTERFACE CABLE 6FT 2 NT9D18A,k MODULE SIDE COVER 2 A0383526 DEC 520 TERMINAL 1 IPC30OF REMOTE MAINT MODEM - 4 NTND26AA MSDL TO D-CHANNEL CABLE 1 NTSM04TA01011C COOK 4 CHANNEL ANNOUNCER 1 93024 EPSON FX 870 PRINTER 1 78210 SERIAL INTERFACE CARD S9603-053 SS/022493 0001/H/S Annex, Page 1 of 2 EXHIBIT D PURCHASE & MAINTENANCE AGREEMENT NORTEL COMMUNICATIONS SYSTEMS INC. ("NORTEL") CITY OF HUNTINGTQN BEA(`J ("CUSTOMER") HARDWARE/SOFTWARE ANNEX (Continued) The features and services which the CUSTOMER shall have available at Cutover are listed below and shall operate substantially as those features are described, where applicable, in the "Features and Services Description" portion of Northern Telecom Practices, a copy of which shall be delivered with the System. The functional description and manner of performance of such features and service may change from time to time as the result of corrections or improvements. Included in this Agreement is Customer's Right To Use ("RTU") Northern Telecom Software up to 0 Terminal Numbers ("TN's"}, 8 Meridian Mail ports and N/A Digital Subscriber Loops ("DSLs"). Expansion beyond the specified level may require payment of additional RTU fees. Ouantaty EquiRmeiat Code Description 3 SW0000G RTUAIERIDIAN 1 RELEASE 21 BASE S/W 1 SWO028A RTU/FAST TDS 3 SWO050B RTU/NE'TWORKING 3 SW0051B RTU/ISDN NETWORKING 3 SWO052C RTUIPRIVATE ISDN NETWORKING 3 SW0059B RTU/NETWORK MESSAGE SERVICES 1 SW0221C RTU/ACD/MESSAGE PROCESSING 1 SW700OF RTU/MERIDIAN MAIL RE1 10 BASE SW I SW7008 RTU/NETWORK MESSAGE SERV SOFTWARE 8 SW7063 RTU/MM FULL SERV PORT LICENSE FEE 2 SW0221C RTU/ACD MESSAGE PROCESSING S9603.053 SSl022493 0001/H/S Annex, Page 2 of 2 EXHIBIT D northein • . rtt MOM" ADDENDUM A MERIDIAN SOFTWARE LICENSE NORTHERN TELIECOM INC. ("NTIth) TELECOMMUNICATIONS PRODUCTS :HIS LEGAL DOCUMENT IS A LICENSE AGREEMENT ("LICENSE") BETWEEN YOU, HE ER -USER ("CUSTOMER") AND NORTHERN TELECOM INC- ("NTI"). BY OPENING THE SEALED DISK PACKAGE WHICH CONTAINS THE SOFTWARE DISKETTE(S), OR BY EXECUTING A CONTRACT FOR PURCHASE OF A SYSTEM WHICH INCORPORATES THIS USER SOFTWARE AGREEMENT, YOU, THE CUSTOMER, AGREE, To HE BOUND BY THE TERMS OF THIS LICENSE. Subjacs to the terms haraiasltaf set forth, NTI vs m to CUSTOMER and/or ieptesentaclvw, w itk a 'stead to kbow.' a paaoasl. Doa- "elusive license (1) to use cattaia Lioensod Software, properotary to NM or its suppliers. ass;hind u an izuepW part of the Hardware; and (2) to instill sad use each itom of Licemsad Softwwo mol an ivtegrsl part of the Hardware; and (3) to tree tho masadmiad doaLroewwWoo. CUSTOMER isanted no tide or ownership tight; in or to the lioeuscd Soliwmv. in whotc or in pare, and CUSTOMER acknowledges that title to and all ccooppyrights, patenu, trade accreu and/or any other intellectual properly n'ghu to Lad in all such Liceased Software and iusoeiated documentatwc re and shall retrain the propotly of NTI aod/ar NTI's 049tiers. The n*u to We Licensed Software may be restricted by a w4aea a of Usage d applications based upon cumber of lines. purnbaa of pores, numb of tamlia] nulnban sarigned, numbs of users, ar moms siradme ttxaawc. Expansion beyond the specified urge level mmy require payment of an inrxemcaW chusa or another tisane fee. NTl eauidirs the Ueepsed Software to contain `trade sacreW of NTl and/or its suppliers, Such 'trade se-crets' include, wW1out Lirnitsdoo thereto, the specific design, structurw and logic of individual Lceusd Sofiwaro program. their iatmramms with other portious of Liotaacd Software. W6 Internal and external, and the Prof--rUct tochniques employed therein. In order to mai"a the 'wade secret' aratus of the information contained within the lieeoaod Software, the Liomacd Software it being daliveted to CUSTOMM in object code lortm only. NTI or asyy of its suppliers holding Lay intallacumd property rights it, Roy Licetrsad 5ohware, and/or say third potty owning any tatetlentul property rights in software from which the Licensed Software was derived, are wiendcd third party honeficiariw of this Liceasc. All pants of right, to uac ititellcetud property intended to be Accomplished by /his Lccusc art exphcitly mated. No other graau of such rights shall be inferred a shall anse by InvLcatiott. CUSTOMER warrants to NTI that CUSTOMER is sot purchasing the rights granted by this Liccnac in anticipation of rawlliag those nghtt. CUSTOMER shill: • )fold tho Licensed Software in confidence for the beocfht of Wn and/or NCI's suppliers using no lest It degree of care tlhan it we to prorcct its own "hart confidential and vmluAble information; sad • Keep a current record of the location of each copy of Lictuscd Software rrtado by it; and • Use Awh copy of Licensed Saflware only oa a single CPU u a time (for this prrpom. single CPU "I iaciudo symtema with redundant proosaiiat units); and • Affix ra each copy of Licensed Software made by it, in the same forth and locrioo. a reprvduc ion of the copyright aatiau, tradcmaria. sad all othm ploprimry legends aed/of Toga of MITI sad/or hTl'm suppliers. rttibg an the original copy of such Uccnaed Software delivered to CUSTOMER; and retaia the time without alteration on all original orpies; and • lamue inarrucLons to each of its Authorised emplaycea, agents, Lod/or reprasaatativcm to whom Liccamd Saffwwo is disclosed, advising them of the confidential oatue of much Uccasod Software and to provide thorn with a aurninary of the uYd mots of this Uomae; sod • Mum tbs Liosnadd S�twom and all copies through an Authorixal Distributor to NII at such rinse as CUSTDMM eheowa to permanently excise tiring it. CUSTOMER shall cot: • Uu. L Oes" Sohtverc (i) for any purpose other their CUSTOMER'+ own iotcnml btuiaeaa purpomem Aqd fill other than as provided by this Li,taae; Of • Allow Laynna othcf than C'USTOMER's empioyecs, ■gent+ sad/ar rapreseotatives with a 'acrid to know" to have physical access to Liecataod Software; or • Make say copics of Liccnsod Software except such limited number of object endO copies in nhadnioe reedahle farm only. a' may he toMtteNy neae,lWY for exeeulioo or archival purpows only; of • Males say friedifttationa, anhancemantat adwi,iou, ar traasladeas to at of licensed Software, except as mmy teaull from those CUSTOMER inlonrUfts with the Licensed SPhwam aaseeiaimd with normut use and explained in tbo as.aa.tad documentation; or Attempt to r'everee *mincer, disassemble. rcverac translate, deoompits. or in any Other tmmanm deoode Liooamod Software, in older to derive the aunt . neck form or for any other means: to Malta full or partial copies of any doorimostation or other Similar printed ar trtac#tine•teadahlc "tatter Itravided with Uosesed Software uslesa tine same has been supplied is a form by NTI sciteaded for periodic re(ttodas jl of Partial topers; ar • Fir;w t or mespon Liocased Software and/or a•a+=ad doouascntattoo from the fifty *sees of the Unilcd Suites and the Disincl of Columbia • NOTE,- notwithassodiaz the above reLtriaianAk if Customer has licensed the Licensed Software under a 'ate licanse' option u set foM in Cuuoatet'a Pntdsaas Agyaa>s►pat, CUAOtIiCr LAmntlloeieed (o "babe a limited pun*ww of copies of the Licivand Softwens and docurncasu►cm e mgNvM trdditiona] uaws as apeeifiod is Cumooher's Purchase Apeermai. CUSTOMER may assign Collectively its rights under dais Liosnse la any subsequant owner of the hardware, but not otherwise, aublecl to oe payment of the then current license (cc for new risers, if say. No nigh assignment shell be valid until CUSTOMHR (1) her delagaied all of its obligation under this Uconhe to the auigmae; and (2) has obtainad from the w illma an imeondilional wnitot aesutrgsuon of all such obGgaliona: and (3) has pvvidod N7I a oePSy of much masigameae, delegation mad utuaaptioe; and (4) has lrassftured physical posaamon of all Licenaad Software and all aaaaciatnd dowmimntation to the tarsi nee and demroyed all arctuval eoptes Except as provided, neither this �csnae nor any righla acgLhrod by CUSTOMER through this License arc aamignWe, Any ,Nterripced assitamenl of rights and/or transfer of Licensed Software sot specifically allowed shall be void and conclusively presumed a material breach of thin License. If NTI (j) daima a mtetwW breach of this Ljcense, and (ii) provides wrmtaa notice of such ddtnod malarial hmach to CUSTOMER amd (aril ohwves that such claimod rostarial breech remaina uacorrcacd sad/or uarttitigatod more than thirty (30) days following CUSTOMER'+ mooipt of written aaxx epecifyia in tnasants6ls dalail the tar lutro of lifts el.imcd material broach, than CRTOMER acknowledges that this License may be inubcdiuely ferminated by NTI and CUSTOMER funhcr acknowledges that say such icniiisation shall be without prejudice to any olhot rights and rcmcdies that NTI rtay have at law or in oquitY. EXPRESS LIMITED WARRANTIES FOR ANY TrEM OF LICENSED SOFTWARE IF ANY, WILL BE SOLELY THOSE GRANTED DIRECTLY i6 CUSTOMER BY DISTRIBUTOR AS DESCRIB® IN THE BODY OF THE AGREEMENT TO WHICH THIS LICENSE IS ATTACHED OA, IN THE CASE OF LICENSED SOFTWARE 130TRIBUTED IN A SEALED IIISK PACKAGE, THOSE WHICH APPEAR AT THE END OF THIS LICENSE AGREEMENT. OTHER THAN AS SET FORTH THEREIN, THIS LICENSE DOES NOT CONFER OR GRANT ANY WARRANTY TO CUSTOMER FROM Oil T+Y NTI; THE LICENSED SOFTWARE IS PROVIDED BY MI "AS IS" AND WITHOUT WARRANTY OF ANY KIND OR NATURE, WRITTEN OR ORAL, EXPRESS OR 1MPblED, INCLUDING (WITHOUT LIMITATION) THE IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE. THIS LIMITATION OF WARRANTIES WAS -.A MATERIAL FACTOR IN THIE ESTABLISHMENT OFTHE LICENSE FEE CHARGED FOR EACH SPECIFIC ITEM OF SOFTWARE LICENSE[}. IN NO EVENT WILL NTT AND/OR NTI'S SUPPLIERS AND THEIR DMECPO" OFFICIUM EMPLOYEM OR AGENTS BE LIABLE TO OR THROUGH CUSTOMER FOR INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL., PUNITIVEy OR EXEMPLARY DAMAGES OF ANY KIND, INCLUDING LAST PROFITS. LOSS OF BUSINESS OR BUSINESS INFORMATION, BUSINESS INTERRUPTION, OR OTHER ECONOMIC DAMAGE, AND FURTHER INCLUDING INJURY TO PROPERTY, AS A RESULT OF USE OR INABILITY TO USE THE LICENSED SOFTWARE OR Exhibit 0 EXHIBIT 2 • NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN NORTEL Communications Systems Inc. (NCS) has a history of assigning top priority to a Customer disaster and is dedicated to achieving an expedient recovery to pre -incident status. The modular design of Northern Telecom's family of switches and the high level of ongoing production in Raleigh, North Carolina, Santa Clara, California and Ontario, Canada provide imme- diate access to the equipment required for a Customer in need. In an emergency situation, NCS can obtain essential hardware from sources such as: if Finished Goods Stock - Materials that have completed the manufac- turing process and are available for configuration and shipment. • Production Line Work in Progress - Materials that comprise a com- pleted system, which could be expedited to Finished Goods; and/or • Product Shipped But Not Installed - Pre -installation stage hardware based at another Customer site, which, through negotiation, can be di- verted for the emergency. NCS is the largest telecommunications equipment service company in California. NCS' parent company is Northern Telecom. This is significant because it means NCS has the size and resources necessary to respond quickly to a disaster of any type. NCS will work closely with the Customer to develop a Disaster Recovery Plan. NCS' commitment to supporting the Customer's Disaster Recovery Plan will be subject to the terms and conditions of the Service Agreement. The Service Agreement should be given consideration prior to the finalization of a Disaster Recovery Plan. In the event of a disaster, it is the responsibility of the Customer to notify NCS' Emergency Technical Assistance Service (TAS) at 1800-735-5980 as soon after the disaster as possible and communicate the severity of the situation to the Center. The Technical Assistance Service Representative will immediately activate the Disaster Recovery Team for a prompt response to your needs. Exhibit F 081194BP Page I 0 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN j (Continued) Fires, floods, tornadoes, earthquakes, lightning, hurricanes... Disasters strike in many ways, but all can be equally devastating. When a disaster strikes your facility and cuts service, the results can be far reaching and often frightening. Critical links to medical, fire and police facilities are severed. Separated family members cannot communicate. Businesses lose telephone -generated revenue that can reach millions of dollars. Following a disaster, nothing will matter more to your business than re- storing service • a potential lifeline - quickly and efficiently. In the unfor- tunate event that you should experience a physical disaster which results in the complete loss of service to your Meridian i switching equipment, NCS will, upon notification, immediately activate the Disaster Recovery Plan. NCS and Northern Telecom have a well defined and proven internal process that is designed to ensure rapid emergency notification, and that establishes lines of communication and outlines responsibility and accountability for all procedures. A quick response to telecommunications emergencies results from contacting the key NCS personnel who oversee and coordinate the program from start to finish. The Disaster Recovery Team, made up of representatives from each major function within the division, is placed on alert and an on -site coordinator is immediately dispatched to the site to assess the extent of damage to the switch and facilities. The on -site coordinator communicates his assessment to the Richardson coordinator who assembles all team members to formulate the Detailed Recovery Plan. Each team member has access to appropriate resources to direct toward the recovery effort. The primary objective of the Disaster Recovery Plan is to restore your Northern Telecom switching equipment to complete operational status as soon as possible. In many cases, a temporary MSL-1 switch can be activated to offer interim dial tone to critical departments until the entire system can be replaced. NCS can provide experts to help assess damage to any equipment component of a network or node, including damage caused by heat, water, lightning and chemicals. NCS' engineers can help expedite reroutes and network redesign to minimize service disruptions. 081194BP Page 2 Exhibit F 0 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) Customer 1. Notifies NCS' Emergency Technical Assistance Service (TAS) at 1-800-735-5980 as soon after the disaster as possible and communicates the severity of the situa- tion. NCS' TAS Representative 2. Immediately notifies the Director, NCS TAS. TAS Disaster Recovery Team Members: TAS (NCS and NTI) Service Area Manager (NCS and NTI) Operations (NCS and NTI) Engineering (NCS and NTI) Manager, Installation and Commissioning (NCS and NTI) 081194BF 3. Immediately activates the Disaster Recov- ery Team from NCS and NTT. 4. Assembles and identifies the on -site coor- dinator who is immediately dispatched to Customer site. 5. Directs the immediate shipment of emer- gency temporary equipment to Customer site. 6. Identifies installation and commissioning personnel who are immediately dis- patched to Customer site. Exhibit F Page 3 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) NCS' On -Site Coordinator 7. Determines the extent of damage and communicates their assessment to the Disaster Recovery Team. B. Directs the 24-hour-per-day, 7-days-per- week installation and commissioning activity of the emergency temporary equipment until basic telephone service is restored. 9. Directs the 24-hour-per-day, 7-days-per- week installation and commissioning activity of the replacement equipment until permanent service is restored. The following assumptions are taken into consideration in the implementa- tion of the Disaster Recovery Plan: • Complete destruction of all Meridian 1 /SL-100 components, cables, and MDF. Station equipment is reusable. Response times are contingent on availability of materials, transporta- tion, disaster site facilities and/or other contractual obligations. • Customer is responsible for maintaining current back-up software (image) on magnetic tape off site. NORTEL Communications Systems IF Inc./Northern Telecom recommend a monthly archival practice. In case of multiple disasters, ita medical centers, and other public health and safety facilities are given priority. Customer assumes all time, materials, and travel and living expenses incurred by NORTEL Communications Systems Inc./Northern Telecom personnel involved in the recovery effort. • All decisions affecting Customer's site are made jointly between Customer, NORTEL Communications Systems Inc. and Northern Telecom. 082194BP Exhibit F Page 4 • C: NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) The key to successful recovery from a disaster is Customer's immediate noti- fication of the NCS Emergency Technical Assistance Service (TAS) at I-800- 735-5980. The severity of the situation must be accurately described to the center. The Technical Assistance Service Representative will immediately activate the NCS/NTI Disaster Recovery Team for a prompt response to your needs, Disaster Recovery activities are billable at then current time and materials rates. 081194BP Page 5 Exhibit F 0 • NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) DISASTER PLAN 90EPffWffk i16 1.1 The Disaster Plan is a series of actions to be taken in the event of total destruction or extreme physical damage to an SLA. Such damage could result from flood, fire, explosion, earthquake, storm, or other events which could cause damage beyond repair by ordinary methods. The Disaster Plan applies to situations where the application of normal maintenance procedures can- not result in the prompt restoration of service. R1199-11ifim 0.620 2.1 The objective of the Disaster Plan is the restoration of service in the shortest possible time, 3.1 Special equipment is maintained for use in the event the Dis- aster Plan is put into effect. This is an SL-1 switch located at the Training Center. It is available for immediate use by the Field Service and Support Department if it is needed for a customer who is without telephone service as the result of a disaster. 3.2 Approval for shipping the emergency switch must be obtained from the Vice -President, Field Service and Support. It should be requested by the Region Operations Manager of the Region in which the disaster occurred. Should the Vice -President, Field Service and Support not be available, it may be released for ship- ment by one of the following: Vice -President, Sales and Service Vice -President, Marketing President, Business Communications Group 061194HP Exhibit; F Page 6 0 0 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued? 14. DTSASTER PROCED RF 4.1 The Disaster procedure requires a number of actions which have been determined as effective in restoring telephone service to the customer as quickly as possible. These actions are to be carried out any time the Disaster Plan is put into effect. 4.2 From the time a report of a disaster is received, there are several positions within the Company which begin working closely toward the objective of restoring service: Vice -President, Service Region Operations Manager Manager of Technical Assistance Center Materials Manager Service Area Manager 4.3 Anyone receiving a report of a disaster is to relay the informa- tion immediately to the Operations Manager. This is the point at which all activity which involves the Disaster Plan begins. The Operations Manager begins the process by sending a Service Area Manager and one or more technicians to the site of the disaster. The Service Area Manager will make an assessment of the damage and report the extent of the damage to the Branch Manager. The Operations Manager is to inform the Vice President, Operations of the situation. The Vice President evaluates the information and advises the Operations Manager, making a recommendation as to whether or not the Disaster Plan should be activated: 4A The responsibility for making the decision to activate the Disaster Plan belongs to the Operations Manager. The decision should be based on an evaluation of all available information, and giving some consideration of the cost to the Company. 081194BP Exhibit Page 7 P' • Ll NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued) 4.5 If the decision is to activate the Disaster Plan, the Operations Manager immediately contacts the Vice -President, Service, for release of the switch. Written confirmation of the action is then made by TWX message to the following: President Vice -President, Service Manager of Technical Assistance Center The TWX message must contain the name of the customer, the location, and a brief statement of the assessment of damage. 4.6 The Operations Manager contacts the Manager of TAC by tele- phone and obtains a Commitment for the appropriate number of engineers to be sent to the site. 4.7 The Service Area Manager instructs the Materials Manager to expedite shipment of the emergency switch. 4.8 As these activities are proceeding, the Service Area Manager at ' the site prepares a list of materials that will be needed to restore service. Materials available at the Iocal warehouse are brought to the site immediately. The remaining materials are requested from the Materials Manager, who expedites shipment. The Service Area Manager has the following additional responsibil- ities: Notify the associated Telco of the requirements necessary for restoring service. Serve as liaison with the customer while service is being restored. Coordinate overall activities with the on -site foreman. Keep the Vice President, Service informed of the progress of the activities. 0811948f Exhibit r- page 8 NORTEL COMMUNICATIONS SYSTEMS INC. DISASTER RECOVERY PLAN (Continued? 4.9 Afier making an assessment of damages and reporting to the Service Area Manager, the on -site foreman assumes the follow- ing' responsibilities: Conduct clean-up operations. Furnish single -line telephones for temporary service. Supervise technicians involved in restoring service. The Disaster Plan continues in effect until full service has been restored. The Service Area Manager then sends a TWX message to those outlined in paragraph 4.5, advising them of completion. 0811945P Exhibit F Page 9