DIRECTV, INC.
Exhibit
10.37
CONFIDENTIAL
TREATMENT REQUESTED - EDITED COPY
**** Certain confidential information contained in this document has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. Omissions are designated as [****]. |
DIRECTV,
INC.
This
Home
Services Provider Agreement (including all Exhibits and Schedules hereto, this
"Agreement") is entered into this first (1st)
day of
June, 2005 (the “Effective Date”), between DIRECTV,
Inc.,
a
California corporation ("DIRECTV"), and 180
Connect, Inc. d/b/a/ Ironwood Communications, Inc.
("Contractor"). DIRECTV and Contractor may also be collectively referred to
herein as the “Parties.”
R
E C I T A L S
A. DIRECTV
is a provider of direct broadcast satellite (“DBS”) services to consumers which
include video, audio, data and other programming delivered via specialized
satellite receiving equipment.
B. DIRECTV
is also engaged in the business of selling digital satellite system equipment
consisting of a satellite antenna (including the LNB) and an integrated
receiver/decoder (including a remote control therefor) (“DIRECTV System”), which
is compatible and fully operable with DIRECTV’s DBS services.
C. DIRECTV
and Contractor entered into that certain Sales Agency Agreement, as amended
from
time to time (the “Sales Agency Agreement”), whereby Contractor became and
continues to act as a commissioned sales agent of DIRECTV in connection with
DIRECTV’s DBS services.
D. In
addition, Contractor is engaged in the business of installing, servicing and
maintaining various consumer electronic products, including satellite
systems.
E. On
December 29, 2000, DIRECTV engaged Contractor to perform installation and
service work with respect to the DIRECTV System (including any associated
products DIRECTV and Contractor agree that Contractor shall install) sold and
rented by DIRECTV and to perform other services pursuant to the specific terms
of that Home Services Provider Agreement dated December 29, 2000 (the “Original
Agreement”).
F. The
Original Agreement has been amended as well as wholly replaced from time to
time
by the Parties, the last replacement date being March
29th,
2003
(the
“2003 HSP Agreement”). The Parties desire that the current 2003 HSP Agreement be
terminated pursuant to the terms and conditions hereunder and be replaced with
this 2005 Home Services Provider Agreement (the “Agreement”) as of the Effective
Date; provided, however, that all covenants, conditions, rights and obligations
of both DIRECTV and Contractor which, by their terms or nature extend beyond
the
termination or expiration of the 2003 HSP Agreement, shall survive its
termination until fully performed.
NOW,
THEREFORE, in consideration of the mutual covenants herein contained, the
parties hereto agree as follows:
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions are
designated as [****].
A
G R E E M E N T
1.
|
Appointment
of Contractor.
|
a. Authority.
DIRECTV
hereby engages Contractor to provide services in the installation and
maintenance of DIRECTV System Hardware (the “Services,” or “Fulfillment
Services” when referring specifically to initial customer installation services
only) as defined herein and as identified in Exhibit
1.a.i.
attached
hereto for DIRECTV customers located in areas specified in Exhibit
1.a.ii.
attached
hereto, which services shall be performed in accordance with this Agreement
and
a Work Order (as defined below) issued by DIRECTV in connection therewith.
Additional installation and/or maintenance services for DIRECTV-related
products, other products (each such service an “Additional Services”), shall be
individually defined in a separate Statement of Work, the rates for such
Additional Services included, and shall be attached hereto and incorporated
herein as Exhibit
1.a.iii.
Throughout the Term, this Agreement may be amended by mutual agreement of the
parties to include further Additional Services and such Additional Services
shall be provided by Contractor pursuant to the terms and conditions as shall
be
set forth herein (Additional Services shall be referred to as “Services”
throughout this Agreement). For purposes of this Agreement, a “Work Order” shall
mean an individual order issued by DIRECTV for each Service, or series of
Services. Each Work Order shall be subject to the terms of this Agreement and
the requirements of each applicable Statement of Work attachment.
b. Limitation.
Nothing
herein shall be construed to grant Contractor any right or authority to sell,
solicit or take orders for DIRECTV’s DBS service, or otherwise act as a sales
agent or an agent of DIRECTV, or sell or rent a DIRECTV System either on its
own
behalf or on behalf of DIRECTV.
c. Commencement
of Work
Notwithstanding any other provision herein, Contractor may perform Services
only
upon: (i) receipt of a written or electronic Work Order from DIRECTV or its
authorized agent; (ii) receipt of the DIRECTV System specifically identified
by
DIRECTV for the DIRECTV customer, or notification that the DIRECTV customer
has
received the DIRECTV System; (iii) coordination by Contractor directly with
the
DIRECTV customer for the earliest convenient time to perform the applicable
Services in connection with the DIRECTV System and agreed upon hardware and
antenna placement (subsequent to the scheduling of the appointment window by
DIRECTV); and (iv) confirmation by Contractor to DIRECTV of receipt of the
Work
Order and scheduled time for provision of applicable Services. Under no
circumstances, however, shall Contractor delay the provision of any Services
hereunder, or the scheduling of such Services appointment, for the convenience
of Contractor and/or its employees or agents. Initial appointment coordination
by Contractor with the DIRECTV customer shall also be used by Contractor to
identify any potential line of sight, landlord/tenant or other issues such
that
the technician shall be provided with all necessary equipment or DIRECTV forms
in order to be able to properly complete the Work Order. Furthermore and in
accordance with the Statement of Work and the Policies and Procedures, as
defined in Section 2.f., Contractor shall, on the morning of the scheduled
appointment, contact each applicable DIRECTV customer with a reminder telephone
call regarding the time of the scheduled appointment.
d. Work
Orders.
Contractor shall perform and provide the Services hereunder in accordance with
this Agreement, the applicable Work Order issued by DIRECTV or its authorized
agent and the applicable Statement of Work(s)as set forth in Exhibit
1.a.iii.
e. Reservation
of Rights.
Contractor expressly acknowledges and agrees that all rights in and to the
satellite transmission of DIRECTV’s DBS services, the DIRECTV System and the
renting, sale, installation and maintenance of the DIRECTV System are reserved
to DIRECTV and nothing in this Agreement shall be deemed to restrict in any
manner the right or ability of DIRECTV to distribute its DBS services or the
DIRECTV System itself or through other parties, or provide any Services to
DIRECTV customers itself or through any other party.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
2
f. Allocations.
Execution of this Agreement does not constitute or guarantee that any Work
Order(s) will be issued by DIRECTV or its authorized agent. DIRECTV may allocate
any Work Orders described hereunder among its agents, retailers and others
in
any manner it may choose. Notwithstanding anything in this Agreement or the
attached exhibits to the contrary, Contractor acknowledges that this Agreement
is non-exclusive and that Contractor is not guaranteed any minimum number of
installations or maintenance or other Service Calls on a per-DMA basis or
otherwise.
g. No
Separate Business.
This
Agreement does not authorize Contractor to operate any business or provide
Services to others for its own account and is merely a contract for Services
to
be provided to, and on behalf of, DIRECTV as ordered by DIRECTV. Contractor
is
not required to pay any fees to DIRECTV to perform hereunder, although fees
payable by DIRECTV to Contractor pursuant to its performance hereunder may
be
subject to offsets or recoupments as is more specifically set forth in section
4
of this Agreement. Contractor acknowledges and agrees that DIRECTV customers
are
customers of DIRECTV, not Contractor.
2. Contractor
Administrative Responsibilities.
a. Connectivity.
(i) Scheduling/Management
System.
Contractor agrees that it will, at Contractor’s expense, acquire, install and
maintain on-line access to DIRECTV's technician scheduling and management
systems as shall be identified by DIRECTV, necessary to establish and maintain
such on-line access for purposes of inputting and receiving Work Orders and
other information from DIRECTV, as soon as possible but in no event later than
fourteen (14) days after DIRECTV makes such connectivity available to
Contractor. Notwithstanding the foregoing, DIRECTV shall make available to
Contractor a certain number of (i) seat Licenses, including any annual
maintenance fee (each an individual “seat license”), and (ii) licenses for the
use of any approved handheld, web-based device, (together, the “Scheduling
Software”) for the dispatching, and receipt of, Work Orders to Contractor
personnel in the field in order to perform the Services as set forth within
this
Agreement; provided, however, that the seat licenses may be deployed without
the
deployment and application of any handheld devices, at the sole discretion
of
DIRECTV. All costs related to the purchase of any handheld device shall be
the
responsibility of Contractor. This initial allocation of Scheduling Software
by
DIRECTV to Contractor shall be based on Contractor’s current pro-rata share of
the overall DIRECTV customer base, as is measured by DIRECTV within the rough
geographical boundaries of Contractor’s appointed DMA(s); provided, however,
that DIRECTV, in its sole discretion, shall provide no less than that amount
of
Scheduling Software as is reasonably required to manage the dispatching of
Contractor personnel for the performance of the Services hereunder as of the
effective date of this Agreement. Should Contractor, at any point during the
Term, request additional Scheduling Software in order to efficiently perform
the
Services hereunder Contractor shall purchase (or reimburse DIRECTV), at its
sole
cost and expense, such additional (or replacement) Scheduling Software through
DIRECTV. This provision for additional Software shall govern any such Contractor
request should DIRECTV select any successor system at any point during the
Term.
Contractor agrees that it will comply with the requirements and instructions
provided by CSG, Siebel or successor vendor and/or DIRECTV in accordance with
the use and implementation of such licenses, software, hardware and equipment
provided in connection with Contractor’s use of the DIRECTV-selected System (or
successor system). Contractor shall also be responsible for all “air-time”
charges (including both voice and data) incurred through the use of the handheld
devices, if any. DIRECTV shall retain title to all hardware or equipment
provided by it to Contractor, if any (other than that hardware, if any,
Contractor elects to purchase); and Contractor shall promptly return such
hardware or equipment to DIRECTV upon DIRECTV’s written request. The scheduled
rollout of the provision of Scheduling Software to Contractor, shall be
determined by DIRECTV. Contractor agrees that it will promptly report the
resolution of each Work Order placed by DIRECTV through the system in accordance
with this Agreement and those guidelines and procedures established by DIRECTV
from time to time. Contractor acknowledges and agrees that failing to promptly
and properly report the resolution of each Work Order placed by DIRECTV pursuant
to the established business rules and/or policies and procedures shall delay
or
prevent DIRECTV’s ability to credit Contractor with the completion of such
Services and Contractor shall not earn Fees for any particular Work Order until
properly closed. Contractor shall require that each technician, including any
Approved Subcontractor, has the ability to communicate in real-time with
Contractor’s applicable dispatch office (two-way radio, cell phone, etc.) while
performing the Services hereunder.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
3
(ii) Internet/E-Mail.
Contractor shall establish and maintain an Internet electronic mail address
(a)
for purposes of business-to-business communication between DIRECTV and
Contractor and (b) to properly perform the obligations hereunder. If DIRECTV
reasonably determines that Contractor’s receipt and/or transmission of data via
email as it relates to this Agreement is hindered as a result of Contractor’s
utilization of a particular internet service provider (“ISP”) (i.e., ISP file
size restrictions, unreasonable traffic load, etc.), Contractor shall be
required, within ten (10) days of such notification from DIRECTV, to retain
a
mutually agreeable ISP in order for Contractor to perform its obligations
hereunder.
b. Office
Space.
Contractor shall provide at its own expense, all office space and supplies,
office overhead (such as telephone, copier and facsimile expense), labor,
skills, tools and other equipment and personnel necessary for it to perform
the
Services in a timely manner. Contractor shall conspicuously display an approved
sign at each office reflecting a logo designated by DIRECTV (in conformance
with
the DIRECTV Trademark and Style Guide, as defined in paragraph 21, below).
Contractor shall staff each office with trained personnel and Contractor shall
be available to perform the Services as requested by DIRECTV in accordance
with
the terms of this Agreement
c. Personnel;
Vehicles; Uniforms.
See
Exhibit
2.c.
d. Books,
Records and Inspections.
During
the term of this Agreement and for a period of three (3) years thereafter,
Contractor agrees that it will keep accurate and complete books and records
regarding its performance of its obligations under this Agreement (including
but
not limited to all original customer-signed forms such as the Customer
Installation Satisfaction Checklists for each Work Order performed, all DIRECTV
Lease Addendum documents, if any, property damage and bodily injury reports,
police reports, Landlord approval forms, DIRECTV System Hardware Xxxx of Lading
documents and documentation verifying employee background checks) and will
make
such books and records available by fax or by physical inspection, or such
other
means as DIRECTV requests, as soon as is reasonably possible upon DIRECTV’s
request. Throughout the Term, Contractor shall file all DIRECTV customer
records, including customer agreements and Work Orders, by date of Services
performed and provided, or as otherwise directed by DIRECTV. During the term
of
this Agreement, as well as any extension thereof, and for a period of three
(3)
years thereafter, Contractor shall make its offices available at any time during
business hours so that DIRECTV may inspect and otherwise audit the way in which
Contractor is performing the Services both at Contractor's offices/warehouses
and on customers’ premises as well as to inspect the manner in which DIRECTV
System hardware is being secured. Such audits by DIRECTV shall include completed
Work Orders as well as work in progress. In addition, Contractor shall keep
accurate and complete financial records related to this Agreement. All such
records and all accounting systems with respect thereto shall be made available
for inspection and review by DIRECTV or its representatives upon reasonable
notice to Contractor during normal business hours throughout the Term of this
Agreement.
In the
alternative, if Contractor conducts annual audits and can produce audited
financial records along with an independent auditor’s opinion, DIRECTV-access to
such audit results shall be sufficient. Financial
records provided shall be maintained in accordance with generally accepted
accounting principles. Contractor shall fully cooperate with DIRECTV in such
inspection and audit.
e. Communications
Contact.
Contractor agrees that it will have reasonably adequate representatives
available at all times, seven (7) days a week (8 am to 6 pm local time), for
communication with DIRECTV and DIRECTV customers, including administrative
personnel to coordinate with DIRECTV personnel regarding completion of the
scheduling of the Services hereunder. Specifically, Contractor shall provide
a
1-800 (toll-free) (or local, as applicable) number that the DIRECTV Customer
Service Department may provide to DIRECTV customers who have a specific question
or problem related to such Customer’s installation or installation appointment
attached to a Work Order provided by DIRECTV to Contractor. Contractor shall
be
obligated to reasonably staff to answer such incoming calls as set forth above.
Attached as Exhibit
2.e.
is a
list of persons whom DIRECTV may call outside of the required business hours
to
coordinate the provision of Services. Contractor will promptly provide an
updated list to DIRECTV whenever the list of persons changes for any reason.
The
designated contact person(s) shall be available on a 24-hour-per-day
7-day-per-week basis.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
4
f. Policies
and Procedures.
In
addition to the terms and conditions set forth herein and in each Work Order,
Contractor agrees that it will comply with all DIRECTV service guidelines and
policies and procedures as reasonably determined by DIRECTV (the “Policies and
Procedures”) furnished to Contractor, which Policies and Procedures may be
amended by DIRECTV from time to time in its reasonable discretion. Such Policies
and Procedures are hereby incorporated into this Agreement by this reference.
Contractor will ensure that the Policies and Procedures are quickly disseminated
to all Contractor personnel, including Approved Subcontractors, performing
the
Services.
g. Representations
and Warranties.
Contractor shall not make any warranties or representations regarding DIRECTV’s
programming services or DIRECTV System that are inconsistent with or more
extensive than the warranties and representations provided by DIRECTV, and/or
the DIRECTV System manufacturers. In no event shall Contractor offer any DIRECTV
customer a Contractor-provided service or maintenance plan with respect to
the
DIRECTV system unless DIRECTV has previously approved, in writing, such an
offer
by Contractor.
3. Contractor
Installation and Service Responsibilities.
See Exhibit
3.
4. Fees
Payable by DIRECTV.
a. Services.
In full
consideration for Contractor’s provision of the Services hereunder, DIRECTV
agrees to pay Contractor for such Services as described below.
(i) Fulfillment
Services.
For
certain Fulfillment Services provided by Contractor, Contractor shall be
entitled to receive payment as set forth in Exhibit
4.a.(i)
(“Rate
Matrix”) for proper and successful completion of the applicable Work Order.
(ii) Service
Calls.
For the
maintenance/Service Calls provided by Contractor to DIRECTV, Contractor shall
be
entitled to receive payment as set forth in Exhibit
4.a.(ii)
("Service Call Payments").
b. Credits;
Refunds.
Notwithstanding anything to the contrary contained herein, Contractor shall
not
be entitled to any payment for Fulfillment Services not completed for any
reason, including a cancellation by the DIRECTV customer at the door. In
addition, DIRECTV shall have the right to offset from the amounts owed to
Contractor hereunder or any other agreement between the Parties, or recoup
from,
or charge back directly to, Contractor, at its option, any amount owed by
Contractor to DIRECTV hereunder, including, but not limited to, any amounts
received by Contractor to which it is not entitled hereunder, any payments
made
to Contractor in error and any cost that DIRECTV incurs or amount that DIRECTV
credits, refunds or pays to a DIRECTV customer or any other third party arising
out of the Services provided by Contractor hereunder. If the amount owed by
DIRECTV to Contractor for a given month is not sufficient to cover the amount
owed to DIRECTV by Contractor for such month, Contractor shall pay the
difference to DIRECTV within thirty (30) days following its receipt of an
invoice from DIRECTV.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
5
5. Invoicing
and Payment; Disputed Payment Resolution.
a. General.
All
installation, maintenance and Service Calls not included in the payments process
as defined below shall be considered disputed payments ("Disputed Payments")
and
shall be submitted by Contractor and paid by DIRECTV as set forth
herein.
b. Payments.
The
payments process shall apply only to installation and services included in
the
Rate Matrix attached hereto as Exhibit
4.a.(i)
and
Exhibit
4.a.(ii)“Service
Call Payments,” both of which may be amended by DIRECTV in its reasonable
discretion. DIRECTV shall pay Contractor on or before thirty (30) days after
the
end of the applicable DIRECTV Accounting Period (i.e., the last day of a given
calendar month), provided, however, that no payment shall be considered to
be
due and payable until the Services in connection therewith have been performed
and completed by Contractor in accordance with this Agreement. Notwithstanding
the foregoing, the Hardware Reimbursement Fee shall be paid weekly by DIRECTV
for those new receivers, specifically containing the access cards previously
shipped to Contractor for the fulfillment of Work Orders hereunder, that
activated during the prior reporting period. In the event of a deployment of
a
new receiver that does not activate at the time of installation by Contractor,
exceptions to the activation requirement where payment shall still be due is
set
forth in the P&P. The parties acknowledge and agree that all other DIRECTV
System Components to be reimbursed for by DIRECTV shall be reimbursed in the
aggregate within Contractor’s monthly Fulfillment Payment (i.e., the Fulfillment
rates take into account Contractor’s cost of consumed refurbished receivers,
XXXx and LNBs for the particular Work Order type). In no event shall DIRECTV
reimburse Contractor for the purchase of any refurbished receiver.
c. Disputed
Payment Resolution.
Contractor shall have sixty (60) days from receipt of payment to request a
reconciliation of DIRECTV’s payment to Contractor. All payments disputed by
Contractor must be made in writing as prescribed hereunder and/or in the
established Policies and Procedures. With respect to any disputes concerning
Contractor’s provision of the Services which are not reflected in DIRECTV’s
system and consequently not paid by DIRECTV, the dispute form/template must
be
submitted as prescribed by DIRECTV and/or in the Policies and Procedures. All
disputed payments must be supported by adequate written descriptions and
supporting documents. Upon such request, DIRECTV shall have forty-five (45)
days
from its receipt of notice of a disputed payment to investigate Contractor’s
claim and to respond to Contractor. In the event that DIRECTV maintains records
needed by Contractor in order to resolve a dispute, DIRECTV shall provide such
documentation to Contractor once at no cost to Contractor. Disputes not
submitted in accordance with the process herein shall not be considered by
DIRECTV. DIRECTV shall act in good faith and deal fairly with Contractor in
reviewing any reconciliation requests submitted by Contractor. DIRECTV’s
decision regarding a reconciliation request shall be final and
determinative.
d. Overpayments.
Immediately upon discovery by Contractor, or as a result of DIRECTV’s audit in
accordance with Section 2(d) above, of any overpayment, Contractor shall notify
DIRECTV, as applicable, and shall return the excess amount to DIRECTV as soon
as
reasonably possible, but in no event longer than ten (10) days after discovery,
or DIRECTV, at its option, may withhold payment of monies due to Contractor
until such time as any overpayment has been rectified.
6. Subcontractors;
Liens.
a. Payment
for Services.
Except
as otherwise requested in writing by DIRECTV, Contractor shall not collect
any
fees, payments or otherwise from DIRECTV customers in connection with the
Services provided and performed in accordance with this Agreement.
b. Liens.
In no
event shall Contractor (a) file, or threaten to file, a lien or a claim against
a DIRECTV customer; (b) encumber in any way the property of a DIRECTV customer;
or (c) in any way seek to secure payment from said DIRECTV customer in
connection with Contractor’s provision of Services hereunder, except as
otherwise permitted by DIRECTV. In the event of any dispute with DIRECTV related
to the Services provided hereunder, Contractor agrees that it shall seek
recourse only against DIRECTV and Contractor agrees to promptly pay and
discharge any liens, claims or charges filed by or on the behalf of any of
its
laborers, Approved Subcontractor(s), material suppliers or any other third
party
whom Contractor has engaged related to the provision of the Services hereunder.
DIRECTV shall have the right to obtain injunctive relief in order to prevent
Contractor from breaching its obligations (or to obtain specific performance
to
compel Contractor to perform its obligations) pursuant to this
Section.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
6
7. Term.
The
term (the “Term”) of this Agreement shall be effective as of the date written
above and shall continue for four (4) years (the "Effective Date"). The Term
will automatically renew thereafter for additional, individual one-year periods
(each such year a “Renewal Term”), unless either Contractor or DIRECTV gives
written notice of termination at least ninety (90) days in advance of expiration
of the then-current Term. The Agreement shall also be terminable for "cause"
as
set forth herein.
8. Early
Termination.
a. Without
Cause.
Either
party may terminate this Agreement for any reason by giving the other party
no
less than one hundred and eighty (180) days prior written notice.
b. With
Cause.
Except
as stated in Section 8(c) below, in the event that either Party breaches its
duties or obligations hereunder, which breach is not cured within thirty (30)
days after written notice is given by the non-breaching party to the breaching
party specifying the breach in reasonable detail, this Agreement may be
terminated by the non-breaching party immediately upon giving written notice
to
the breaching party.
c. Noncurable
Breaches.
In the
event Contractor commits a noncurable material breach of this Agreement, then,
notwithstanding Section 8(b) above, DIRECTV shall have the option to terminate
this Agreement immediately upon written notice to Contractor without an
opportunity to cure, with no further liability to Contractor. A particular
noncurable material breach may be deemed to have occurred, by way of example,
and not as any limitation, where Contractor or any employee, agent or affiliate:
(i) has
misrepresented the prices, terms, or conditions upon which the manufacturer’s
warranty, extended warranty, installation services or other products,
promotions, or services are being offered by DIRECTV;
(ii) has
engaged in signal piracy or theft of satellite signals;
(iii) has
engaged in or attempted to engage in the sale and distribution of, or otherwise
has used, modified access cards;
(iv) has
engaged in or attempted to engage in documentable “bait-and-switch” conversion
tactics for services which compete with DIRECTV programming services;
(v) has
induced or attempted to induce a DIRECTV customer to switch to a service which
competes with DIRECTV’s programming service;
(vi) has
received a notice of violation of the terms or conditions of any license or
permit required in the conduct of its business and has failed to correct such
violation within the time period specified in such notice;
(vii) has
knowingly submitted a request for a payment, including any bonus payment, where
one is not properly payable;
(vii) has
failed at any time to comply with and maintain the insurance requirements set
forth in this Agreement;
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
7
(viii) has
installed or attempted to install, or failed to immediately inform DIRECTV
of, a
residential programming package at a commercial customer location;
(ix) has
changed or attempted to change identification numbers on customer accounts
to
falsely obtain any kind of payment;
(x) has
breached the obligations regarding the use of DIRECTV Confidential Information
as described in Section 23 below, including, but not limited to, deploying
a
third party vendor with access to DIRECTV Confidential Information prior to
such
third party being approved in writing by DIRECTV;
(xi) has
breached its obligation to quality inspect those installations related to
Fulfillment Services as set forth in Section 3.b.(viii) more than once in any
twelve (12) month period during the Term; or
(xii)
has
breached its obligations as set forth in Section 10 of this
Agreement.
9. Effects
of Termination.
a. Upon
termination, suspension, or expiration of this Agreement, all rights and
obligations of either party hereunder shall cease without further liability,
effective as of the date of termination, suspension or expiration, unless
otherwise stated in this Agreement and except with respect to liabilities
arising prior to termination of this Agreement. Contractor agrees, and agrees
to
cause its employees, agents and Approved Subcontractors, to return to DIRECTV
within ten (10) days after termination of this Agreement all materials (and
all
copies thereof) relating to DIRECTV, including, but not limited to, any and
all
price and specification catalogues, all administrative manuals, all sales
literature, and any and all other such materials. Upon termination of this
Agreement, Contractor agrees that Contractor, its employees, agents and Approved
Subcontractors immediately shall discontinue the use of any service xxxx or
trademark covered by this Agreement, as well as the use of any other items
involving DIRECTV's name, such as signs, stationery, logos, or business cards,
and Contractor will not represent itself in any fashion as a contractor, an
agent or representative of DIRECTV. Upon termination, suspension or expiration
of this Agreement, Contractor agrees that it and each of its employees, agents
and Approved Subcontractors will promptly return all DIRECTV owned property
in
their possession to DIRECTV by any delivery means reasonably requested by
DIRECTV, with the cost of returning such property to be at DIRECTV’s expense.
Because of the difficulty in establishing the improper use of Customer
Information and other DIRECTV Confidential Information, as defined below,
Contractor agrees that for a period of two years after termination, it shall
not, on behalf of any other provider of multi-channel video service or on its
own behalf, solicit any DIRECTV customer for whom Contractor provided Services
in accordance with the terms of this Agreement.
b. If
the
termination hereof is due to Contractor’s material breach, DIRECTV may elect to
terminate the DIRECTV Sales Agency Agreement, if any exists between the parties,
at its sole discretion.
10. Exclusivity.
Due to
the fact that Contractor will have access to Customer Information and other
DIRECTV Confidential Information as defined below, during the term of this
Agreement, Contractor agrees that neither it, nor its parent entities,
subsidiaries or affiliates, shall perform installations or Services for any
other provider or distributor of products/services which compete with DIRECTV’s
programming services or any other DIRECTV product or service, except as
otherwise permitted by DIRECTV. This includes, but is not limited to the
distribution of television programming via DTH, MMDS or any and all other
technologies and media now existing or hereafter developed. Notwithstanding
the
foregoing, this Section shall not prohibit Contractor from performing
traditional cable television or telephone installation, maintenance and service
work; provided, however, that Contractor shall use its best efforts to designate
its employees as either DIRECTV service providers or a provider of all other
non-DIRECTV-related services, if any (in other words, a Contractor employee
trained to provide Services pursuant to this Agreement shall not also provide
services, on behalf of Contractor, for a cable company or a provider of
telephony services).
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
8
11. Other
Products.
From
time to time, DIRECTV may offer to Contractor the opportunity to market/promote
additional products or services to the DIRECTV Customer while Contractor is
performing the Services within the Customer’s residence (The DIRECTV Protection
Plan, for example). In the event that Contractor elects to act as one of
DIRECTV's representatives as it relates to such products or services, the terms
of such arrangement shall be set forth in Exhibit11, hereto.
12. Defaults
and Remedies.
In the
event Contractor is in anticipatory breach of this Agreement or has failed
to
comply with any material term or provision of this Agreement, DIRECTV shall
have
the right at its option to (a) perform or cause to be performed any one or
more
of Contractor’s obligations, in which case, DIRECTV shall be entitled to obtain
from Contractor or deduct from any amount payable to Contractor, an amount
equal
to any increased cost incurred by DIRECTV in performing or obtaining the
performance of Contractor’s obligations hereunder; (b) terminate this Agreement
in accordance with Section 8; or (c) pursue any other remedy available under
applicable law.
13. Conformance
to All Laws.
DIRECTV
and Contractor shall comply with all applicable federal, state, county and
municipal laws, codes, rules, regulations in the performance of its obligations
under this Agreement, including but not limited to, in the case of Contractor,
obtaining all of the necessary licenses and permits required of Contractor
by
the municipality and state in which the work is being performed and complying
with the Occupational Safety and Health Act.
14. Taxes.
a. Contractor
Taxes.
All taxes that may be levied on Contractor for services provided under this
Agreement or otherwise shall be the sole responsibility of Contractor, including
all applicable taxes on payments made by DIRECTV to Contractor pursuant to
this
Agreement.
b. Contesting
of Taxes.
Contractor shall not contest the levying or assessment of any tax for which
DIRECTV or DIRECTV customers are responsible for payment related to the services
provided hereunder without DIRECTV's prior written consent.
15. Insurance.
From
and after the date of this Agreement:
a. Coverage.
Contractor shall obtain and maintain insurance, as provided by a licensed
insurer with a Best’s rating of A- VIII or better, with coverage and limits as
follows:
(i) Contractor
shall carry a policy (or policies) of Workers Compensation Insurance covering
Contractor’s employees in each jurisdiction in which Contractor is performing
work pursuant to this Agreement. Each such policy shall be on a form approved
for use in each state in which work is being performed and shall provide, at
a
minimum, statutory Workers’ Compensation coverage and Employer’s Liability
Insurance at limits of not less than $500,000.00 per employee per accident
for
Bodily Injury by Accident, $500,000.00 per employee per occupational disease
and
$500,000.00 for all occupational diseases. If Contractor shall be performing
work pursuant to this Agreement in a state known as a “Monopolistic” state, or
if Contractor has qualified in any state as a self-insurer, the Employers’
Liability coverage for that state may be attached either to another Workers’
Compensation policy or to the Commercial General Liability coverage.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
9
(ii) Commercial
General Liability Insurance covering Operations and Premises Liability;
Independent Contractors; Completed Operations; Product Liability; Contractual
Liability; Personal Injury; Property Damage caused by explosion, collapse and
underground damage; and Broad-Form Property Damage. The limits of such liability
insurance shall be no less than $1,000,000.00 per occurrence.
(iii) Comprehensive
Automobile Liability Insurance covering all owned, hired and non-owned vehicles,
including the loading or unloading thereof, with limits of no less than
$1,000,000.00 combined single limit for bodily injury and/or property
damage.
(iv) All
Risk
Commercial Property Insurance issued on a replacement cost basis, in an amount
sufficient to cover all DIRECTV-owned property in the care, custody, and control
of Contractor, if any. The policy must name DIRECTV as the loss payee.
(v) Umbrella
or Excess Liability Insurance covering the items set forth in (i) (insofar
as it
relates to Employer’s Liability Insurance), (ii) and (iii) above with a policy
limit of not less than $5,000,000.00.
b. Companies.
All
such insurance shall be carried in companies reasonably satisfactory to DIRECTV
and licensed to do business in the jurisdiction where the obligations of
Contractor under this Agreement are to be performed, and the liability policies
shall be primary coverage and shall name DIRECTV, its subsidiaries, employees
and affiliates as additional insureds.
c. Commencement
of Work.
Contractor shall likewise not allow any subcontractor to commence work until
subcontractor has obtained the same insurance coverage required of Contractor
hereunder; provided, however, that subcontractors shall not be required to
carry
umbrella or blanket insurance policies.
d. Cancellation.
Each
policy shall provide that it will not be canceled, non-renewed or materially
amended except after thirty (30) days advance written notice to DIRECTV, mailed
to the address indicated herein, and the policy, policy endorsements or
certificates of insurance shall so state.
e. Evidence
of Insurance.
Contractor shall provide certificates evidencing coverage as listed above prior
to commencement of work, and at every annual renewal of the policies, for the
duration of this Agreement. All certificates shall name DIRECTV as an additional
insured as respects commercial general liability, automobile liability, and
umbrella or excess liability insurance. Endorsements to the policies naming
DIRECTV as additional insured will be provided by Contractor upon request.
Contractor will endeavor to obtain waivers of subrogation in favor of DIRECTV
from its insurers.
16. Amendment.
DIRECTV
retains the right to change (i) both the Rate Matrix and Service Call Payments
schedule pursuant to Section 5.b., above, (ii) the Performance Standards as
set
forth in Exhibit 3.e.(v), and (iii) zip codes associated with the DMAs or
partial DMAs listed in Exhibit
1.a.ii.,
from
time to time in its reasonable discretion, as its business needs dictate,
provided that reasonable, prior written notice shall be provided to Contractor.
Subject to the exclusions set forth in the previous sentence, this Agreement
may
only be modified or supplemented by written agreement by both parties.
Modifications include, but are not limited to, changes to Contractor’s business
entity, including name, ownership and/or legal organizational
formation/structure.
17. Assignment.
As this
is an agreement for personal services, Contractor may not assign its rights
and
obligations under this Agreement without the written consent of DIRECTV. Any
purported assignment by Contractor to a third party in violation of this Section
shall be void effective as of the date the attempted assignment was made, and
DIRECTV shall have the right immediately to terminate this Agreement upon notice
of such attempted assignment without consent. DIRECTV, in its sole discretion,
may assign its rights and obligations under this Agreement at any time for
any
purpose.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
10
18. Indemnification.
Contractor shall indemnify, defend and hold DIRECTV, its affiliate, subsidiary
and parent entities and each of their respective directors, officers, employees,
agents, assigns and successors harmless from any and all costs, expenses,
liability, claims, judgments, lawsuits and demands (including attorneys' fees)
arising out of (a) the performance, breach or alleged breach by Contractor
of
its obligations, warranties, representations or covenants under this Agreement;
(b) the negligence or other wrongdoing, in whole or in part, on the part of
any
employee, agent, servant, subcontractor, or representative of Contractor in
connection with the performance of its obligations under this Agreement; (c)
the
termination, disturbance, interruption or other interference with services
of
any type of utility or other public or private facility damaged, harmed or
disturbed, or caused to be disturbed, by Contractor and any of its agents,
servants, employees, subcontractors or representatives; (d) any acts or
omissions of Contractor which would cause the independent contractor status
as
provided in Section 19 to be breached; and (e) any acts or omissions of any
Approved Subcontractor. This Section shall survive the termination or expiration
of this Agreement. DIRECTV shall indemnify, defend and hold Contractor, its
officers, directors, employees, agents and affiliates harmless of and from
any
and all costs, expenses, liability, claims, judgments, lawsuits and demands
(including attorneys' fees) arising out of (a) the performance or breach by
DIRECTV of its obligations under this Agreement; or (b) the active negligence
or
other wrongdoing on the part of any employee, agent, servant or representative
of DIRECTV in connection with the performance of its obligations under this
Agreement.
19. Independent
Contractor.
Contractor is an independent contractor authorized during the term hereof to
perform and provide Services to DIRECTV. Except as otherwise expressly provided
herein, Contractor shall have full control over the methods, techniques,
sequences, and procedures of the Services to be provided hereunder. This
Agreement is intended to create an independent contractor relationship between
the parties for purposes of federal, state and local law, including the Internal
Revenue Code of 1986, as amended. Without limitation, Contractor agrees to
provide DIRECTV with a completed “Request for Taxpayer Identification Number and
Certification” in which the applicable taxpayer identification number is
identified. Because Contractor and Contractor’s employees and subcontractors are
not employees, franchisees, agents or otherwise of DIRECTV, Contractor and
its
employees and subcontractors are not entitled to any benefits to which DIRECTV
employees may be entitled under DIRECTV policies or as otherwise required by
law, including workers’ compensation or unemployment compensation benefits.
DIRECTV will not withhold any taxes from any amounts payable to Contractor
under
this Agreement and will not make any FICA or other contributions on behalf
of or
for the benefit of Contractor, its employees and subcontractors. Contractor
will
be solely responsible for the payment of all state, federal and local taxes
on
amounts payable to Contractor under this Agreement. Contractor shall indemnify
DIRECTV for any claims relating to such payments.
20. Employee
Hiring Limitation.
DIRECTV
and Contractor agree that they will not intentionally solicit or hire the other
party’s employee(s) in any capacity for twelve (12) months from the date an
employee terminates employment with DIRECTV or Contractor, unless otherwise
mutually agreed upon in writing by DIRECTV and Contractor.
21. Service
Marks and Trademarks.
DIRECTV
hereby grants, and Contractor hereby accepts, the non-exclusive right to use
the
service marks or trademarks of DIRECTV (the “DIRECTV Marks”) solely in
connection with the provision of Services during the Term. Contractor agrees
that (i) it shall use the DIRECTV Marks solely in connection with the provision
of Services during the Term, and in accordance with all of the terms and
conditions set forth herein, (ii) the DIRECTV Marks shall be exhibited and
displayed in the exact form provided by DIRECTV, (iii) it shall not make or
permit the making of any copies of the DIRECTV Marks, in whole or in part except
as reasonably required for the purposes herein specified, (iv) it shall not
have
the right to authorize others, with the exception of Contractor’s affiliates,
subsidiaries and agents, to use the DIRECTV Marks (and then only subject to
the
restrictions set forth herein), (v) its use of the DIRECTV Marks shall include
all standard proprietary notices prescribed by DIRECTV, if any, and (vi) its
use
of the DIRECTV Marks shall conform to quality standards which are provided
by
DIRECTV. All right, title and interest in and to the DIRECTV Marks, including
all associated goodwill shall remain vested in DIRECTV subject to the rights
of
use granted in this Agreement. Contractor will not use any service marks or
trademarks of DIRECTV (“DIRECTV Marks”) or of any network or programmer included
in the DIRECTV programming services, without the specific prior written consent
of DIRECTV. Any unauthorized use of such marks by Contractor, or any use not
in
compliance with any rules or procedures regarding the use of such marks, shall
constitute an infringement of the rights of DIRECTV or of its network suppliers.
Contractor shall be authorized to use the DIRECTV Marks in accordance with
the
terms hereof and in accordance with the terms of the trademark and logo
guidelines provided by DIRECTV (the “DIRECTV Trademark and Style Guide”).
Notwithstanding any provision of this Agreement, Contractor’s rights in the
DIRECTV Marks shall be limited to those rights set forth here. Contractor shall
indemnify and hold DIRECTV harmless from and against any and all costs, expenses
(including reasonable attorneys’ fees) and liabilities resulting from a breach
of this Section. A breach of this Section shall be deemed a material breach
of
this Agreement.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
11
22. Notices.
All
notices required hereunder shall be in writing and shall be deemed given when
personally delivered, when telecopied (with confirmation receipt) if also sent
via U.S. first class mail, upon delivery by an overnight courier service, or
upon the date of receipt when sent by certified mail, return receipt requested,
to the following address or to such other address a party may hereafter
designate in writing:
If to DIRECTV: |
DIRECTV,
Inc.
|
Vice
President, Field Operations
0000
Xxxxx Xxxxxxx, Xxxxx 000
Xxxxxxxxx,
XX 00000
with copies to: |
1)
Senior Vice President, Field
Operations
|
DIRECTV,
Inc.
0000
Xxxxx Xxxxxxx, Xxxxx 000
Xxxxxxxxx,
XX 00000
Fax:
(000) 000-0000
2)
Assistant General Counsel
DIRECTV,
Inc.
0000
Xxxxx Xxxxxxx, Xxxxx 000
Xxxxxxxxx,
Xxxxxxxx 00000
Fax:
(000) 000-0000
Fax:
(000) 000-0000
If
to
Contractor: SEE
EXHIBIT 2.e.
23. Proprietary
Information and Confidentiality.
a. Definition.
Contractor, its employees, agents and Approved Subcontractors, in carrying
out
their duties, will have access to certain trade secrets, marketing data,
Customer Information as well as certain knowledge concerning the business
affairs of DIRECTV, including the terms of this Agreement (collectively "DIRECTV
Confidential Information").
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
12
b. Restricted
Use.
Neither
Contractor, its employees, agents nor Approved Subcontractors may use any
DIRECTV Confidential Information for any reason whatsoever (other than to
perform this Agreement), including, but not limited to, for its own benefit
or
for the benefit of a third party or to interfere, or cause interference with
DIRECTV and DIRECTV’s customers. Contractor shall ensure that DIRECTV
Confidential Information is protected with at least the same degree of care
Contractor uses to protect its own information of like nature, but no less
than
a reasonable degree of care, taking into account the competitive nature of
the
information. Contractor specifically agrees that all materials (and all copies
thereof) relating to DIRECTV, including, but not limited to, all price and
specification catalogues, lists of all former and current DIRECTV customers
or
prospect lists supplied by DIRECTV or generated by Contractor during the course
of this Agreement, all administrative manuals, all sales literature, and any
and
all other information or data related to DIRECTV’s programming services, are the
exclusive property of DIRECTV and are to be used by Contractor, its employees,
agents and subcontractors solely in the performance of their obligations and
duties as described herein, and that such lists and other data are to be
returned to DIRECTV immediately upon termination of this Agreement.
c. Confidentiality
Agreements.
Contractor agrees that it will require its employees, agents and Approved
Subcontractors to sign an agreement that protects DIRECTV at least to the same
degree as set forth in this Section before any activity in support of this
Agreement is undertaken by such employee, agent or Approved Subcontractor.
d. No
Obligation of Confidentiality.
For
purposes of this Section, DIRECTV Confidential Information shall not include
information: (i) which becomes generally available to the public through no
wrongful act of Contractor; (ii) is already lawfully in the possession of
Contractor and not subject to an existing agreement of confidentiality; (iii)
is
furnished to Contractor by a third party free from any duty of confidentiality
to DIRECTV; or (iv) is disclosed pursuant to the binding order of a government
agency or a court so long as Contractor provides notice to DIRECTV prior to
any
such disclosure and uses reasonable efforts to obtain confidential treatment
for
the information.
e. Irreparable
Damage.
Contractor acknowledges and agrees that DIRECTV would be irreparably damaged
if
Contractor breached any part of this Section and that DIRECTV may take any
action, including seeking injunctive relief, to prevent Contractor’s prospective
breach or continuing breach of this Section.
f. Material
Consideration.
Contractor acknowledges and agrees that Contractor's and its employees’, agents’
and subcontractors’ compliance with this confidentiality Section is a material
consideration to DIRECTV in entering into this Agreement and the relationship
hereby created.
24. Limitations
on Damages.
CONTRACTOR AND DIRECTV AGREE THAT THERE WILL NOT BE ANY LIABILITY TO THE OTHER
FOR ANY LOST PROFITS, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, EVEN IF
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
25. Miscellaneous
Provisions.
a. Reservation
of Rights.
All
rights not specifically granted to Contractor in this Agreement are expressly
reserved to DIRECTV.
b. Authority
to Execute.
Each
party represents to the other that the person executing this Agreement on such
party's behalf has the right, power and authority to enter into this Agreement
and to perform such party's obligations under this Agreement and that such
execution is binding upon such party.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
13
c. Waiver.
Any
failure to insist on the strict performance of any term or condition of this
Agreement: (i) shall not be deemed a waiver of such term or condition unless
the
waiver is reduced to writing and signed by the parties; and (ii) shall not
act
as a waiver of the right to insist upon strict performance of that term or
condition in the future.
d. Integration.
This
writing represents the entire agreement and understanding of the Parties with
respect to the subject matter hereof and supersedes all previous agreements
with
respect to the same; it may not be altered or amended, except by an agreement
in
writing signed by the Parties. Notwithstanding the foregoing, nothing herein
shall be construed to supersede or otherwise affect the Parties’ rights and
obligations under the Sales Agency Agreement between the Parties.
e. Governing
Law.
This
Agreement shall be governed by the laws of the State of California, without
regard to any conflict of law principles.
f. Jurisdiction
and Venue.
In the
event of any legal action involving this Agreement, the parties agree that
exclusive venue shall be where DIRECTV’s corporate headquarters is located. With
respect to all disputes under this Agreement, Contractor submits itself to
the
exclusive personal jurisdiction of the federal and state courts of the State
of
California.
g. Headings.
The
headings of paragraphs in this Agreement are for convenience only; they form
no
part of this Agreement and shall not affect its interpretation.
h. No
Inference Against Author.
No
provision of this Agreement shall be interpreted against any party because
such
party or its legal representative drafted such provisions.
i. Severability.
If any
part of any provision of this Agreement is invalid or unenforceable under
applicable law, the provision shall be ineffective only to the extent of such
invalidity or unenforceability without in any way affecting the remaining parts
of the provision or this Agreement.
j. Binding
Effect.
This
Agreement is binding upon the parties hereto, and their respective executors,
administrators, heirs, assigns, and successors in interest.
k. Attorney
Fees.
In the
event of any legal dispute between the parties, the prevailing party shall
be
entitled to all costs and expenses, including expert witness fees and reasonable
attorneys' fees, at trial and at any appeal therefrom.
l. Remedies.
Subject
to the limitations of Section 24, no remedy conferred by any specific provision
of this Agreement is intended to be exclusive of any other remedy available
to
the parties under this Agreement or at law or in equity, whether by statute,
rule or otherwise.
m. Defined
Terms.
Any
defined terms used in the Exhibits to this Agreement shall have the meanings
given to them in this Agreement.
n. Counterpart
Signatures.
This
Agreement may be executed in counterparts, all of which taken together shall
constitute one and the same instrument.
o. Survival
of Terms.
The
rights and obligations which, by their terms or nature, extend beyond the
termination or expiration of this Agreement, shall survive any expiration or
termination of this Agreement.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
14
IN
WITNESS WHEREOF
the duly
authorized representatives of the Parties hereto have caused this Agreement
to
be executed as of the day and year first written above.
CONTRACTOR
By:
Name:
Title:
|
DIRECTV, INC.
By:
Name:
Title:
Senior Vice President
|
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
15
EXHIBIT
1.a.i.
SERVICES/FULFILLMENT
SERVICES
Fulfillment
Services
·
|
High
Power residential installations, including retail sales agents, DIRECTV
Direct Sales initiatives and fulfillment of other acquisition
activities
|
·
|
Multi-satellite
residential installations including PARA TODOS, Local into Local
and High
Definition
|
· |
Commercial
customer installations (upon
Contractor’s applicable commercial certification by
DIRECTV)
|
Grade
1
-
Capable of installing up to 4 or 8 IRDs in the same commercial establishment
using one multiswitch
Grade
2
-
Capable of installing any number of IRDs in a commercial establishment using
multiple multiswitches
Grade
3
-
Capable of building a headend in a commercial establishment that receives
DIRECTV programming, converts it to a standard VHF/UHF channel frequency
and
distributes it to a "cable ready" TV set on a standard UHF/VHF distribution
system.
Service
Work
·
|
Service
Calls (including escalated Service Calls from other
Contractors)
|
·
|
Move/transfer
installations
|
·
|
DIRECTV
System and other equipment pick-ups (disconnected and downgraded
accounts)
|
·
|
Additional
outlet upgrades
|
·
|
Relocates
|
·
|
Multi-satellite
upgrades
|
·
|
High
Definition (“HD”) Antenna
Installation
|
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
16
EXHIBIT
1.a.ii.
FULFILLMENT
SERVICE DMAS
(Pursuant
to Contractor’s Authorization under Section 1(a) of the Agreement)
This
or
these DMAs or portions of DMAs are assigned to Contractor on a non-exclusive
basis.
Work Orders may also be provided to Contractor within zip codes adjacent to,
but
not within a DMA listed below. Contractor IS NOT AUTHORIZED TO CONDUCT
FULFILLMENT OR OTHER SERVICES PURSUANT TO THIS AGREEMENT IN ANY DMAs NOT
AUTHORIZED BY THIS CONTRACT OR UNLESS DIRECTED IN WRITING BY DIRECTV.
DMA
Assignment
IRONWOOD
|
Boise_ID,OR
|
Tier
3
|
IRONWOOD
|
Eugene_OR
|
Tier
3
|
IRONWOOD
|
Glendive_MT
|
Tier
1
|
IRONWOOD
|
IdahoFalls-Pocatello_ID,WY
|
Tier
2
|
IRONWOOD
|
LasVegas_NV
|
Tier
3
|
IRONWOOD
|
Philadelphia_DE,NJ,PA
|
Tier
2
|
IRONWOOD
|
Phoenix_AZ
|
Tier
2
|
IRONWOOD
|
Portland,OR_OR,WA
|
Tier
3
|
IRONWOOD
|
Reno_CA,NV
|
Tier
2
|
IRONWOOD
|
SaltLakeCity_ID,NV,UT,WY
|
Tier
3
|
IRONWOOD
|
Seattle-Tacoma_WA
|
Tier
3
|
IRONWOOD
|
Spokane_ID,MT,OR,WA
|
Tier
2
|
IRONWOOD
|
TwinFalls_ID
|
Tier
2
|
IRONWOOD
|
Yakima-Pasco-Richland-Kennewick_OR,WA
|
Tier
2
|
IRONWOOD
|
Bend,OR_OR
|
Tier
3
|
IRONWOOD
|
Casper-Riverton_WY
|
Tier
0
|
XXXXXXXX
|
Xxxxxx_XX,XX,XX,XX
|
Tier
3
|
IRONWOOD
|
KansasCity_KS,MO
|
Tier
4
|
IRONWOOD
|
LittleRock-PineBluff_AR
|
Tier
3
|
IRONWOOD
|
Medford-KlamathFalls_CA,OR
|
Tier
3
|
IRONWOOD
|
Pittsburgh_MD,PA,WV
|
Tier
3
|
IRONWOOD
|
Tucson(SierraVista)_AZ
|
Tier
3
|
IRONWOOD
|
Wichita-Hutchinson_KS,NE
|
Tier
3
|
IRONWOOD
|
Billings_MT,WY
|
Tier
4
|
IRONWOOD
|
Cheyenne-Scottsbluff_NE,WY
|
Tier
4
|
IRONWOOD
|
ColoradoSprings-Pueblo_CO
|
Tier
4
|
IRONWOOD
|
Erie_PA
|
Tier
4
|
IRONWOOD
|
GrandJunction-Montrose_CO
|
Tier
4
|
IRONWOOD
|
GreatFalls_MT
|
Tier
4
|
IRONWOOD
|
Harrisburg-Lancaster-Lebanon-York_PA
|
Tier
4
|
IRONWOOD
|
Helena_MT
|
Tier
3
|
IRONWOOD
|
Johnstown-Altoona_PA
|
Tier
4
|
IRONWOOD
|
Roanoke-Lynchburg_VA,WV
|
Tier
4
|
IRONWOOD
|
Butte-Bozeman_MT
|
Tier
4
|
IRONWOOD
|
Charlottesville_VA
|
Tier
4
|
IRONWOOD
|
FortSmith-Fayetteville-Springdale-Rogers_AR,OK
|
Tier
4
|
IRONWOOD
|
Harrisonburg_VA,WV
|
Tier
4
|
IRONWOOD
|
Jonesboro_AR
|
Tier
4
|
IRONWOOD
|
Joplin-Pittsburg_KS,MO,OK
|
Tier
4
|
IRONWOOD
|
Missoula_MT
|
Tier
4
|
IRONWOOD
|
SaintJoseph_KS,MO
|
Tier
4
|
IRONWOOD
|
HONOLULU_HI
|
Tier
5
|
During
the Term, DIRECTV may elect to offer to Contractor additional Services work
outside of the DMAs currently listed. Contractor may elect to take on this
additional work at its sole discretion. In such case, such additional Services
work shall involve Contractor operating as the primary provider in the
additional DMA(s) (in such case, a transition of the former primary provider
will occur simultaneously) or
Contractor operating as the secondary provider with the primary Services
provider remaining in the applicable DMA(s).
If
Contractor operates as the primary provider in the additional DMA(s), all terms
and conditions as set forth herein shall apply to the Services provided. If
Contractor operates as the secondary provider, with the primary Services
provider remaining in the additional DMA(s), then all terms and conditions
as
set forth in the Secondary Provider Agreement by and between Contractor and
DIRECTV shall apply to such Services provided by Contractor.
EXHIBIT
1.a.iii - Statement of Work
RESIDENTIAL
Standards
for all Antenna Type Residential Installations
Customer
service requirements for all customer interaction
1.
|
Phoning
the customer and confirming account information and installation
times
within the scheduled timeframe established by
DIRECTV.
|
2.
|
Reminder
phonecall to Customer day of the scheduled
appointment
|
3.
|
Arrival
at customers residence within the designated window of
time.
|
4.
|
Completion
of site survey.
|
5.
|
Planning
the installation with the customer (cable routing, antenna location
and
connection of devices).
|
6.
|
Notification
to customer and Contractor management of any additional (non-standard)
charges prior to commencement of any
work.
|
7.
|
Cleaning
up any mess made during installation and removing it from the customers
residence.
|
8.
|
Activation
of DIRECTV service with the customer on the
phone.
|
9.
|
Customer
education on system operation and features (min. 20
minutes).
|
10.
|
Completion
of Installation Checklist and obtaining customers signature certifying
the
job was completed to their satisfaction
.
|
11.
|
Leaving
your company name and telephone number with the customer enabling
them to
contact Contractor directly if there are any problems with the
installation (business card).
|
Standard
Receiver Hook-Up, Cabling and Antenna Mounting
Requirements
1.
|
Routing
and properly attaching cable following local/NEC codes using RG-6
cable with a max loop resistance at 100 feet of 2 ohms or
less.
|
2.
|
Routing
cable through one exterior and one interior
wall.
|
3.
|
Grounding
antenna system and cable to meet Local / NEC
requirements.
|
4.
|
Installing
one DIRECTV System IRD.
|
5.
|
Connection
to an active telephone line capable of dialing out. There is no additional
charge to the customer for installation of a phone xxxx for this
connection.
|
6.
|
Mounting
of antenna to meet Manufacturers and/or DIRECTV Quality Specifications,
whichever is more stringent.
|
7.
|
Aligning
the antenna for peak signal
strength.
|
8.
|
Completion
of a system test verifying signal strength, access card match and
telephone connectivity.
|
9.
|
Connection
of existing off-air antenna or active cable drop (enabling TV to
function
as it had prior to DIRECTV
installation).
|
10.
|
Connection
of co-located devices (VCR, existing surround sound, DVD, video games,
etc).
|
11.
|
Cable
must meet DIRECTV specifications and all exterior connections must
be
weather proofed.
|
Digital
Video Recorder (“DVR”) Summary
1.
|
Optimize
connection to the dual tuners of the DVR system to the DIRECTV receiver
using cabling supplied with the DVR system or better. Dual independent
coaxial cables must be run from the LNB to the receiver’s dual
inputs.
|
2.
|
Educate
the customer with an explanation of the DVR features on DVR capable
systems and initial steps to use the
service
|
18”x
20” Antenna/2 or 3 LNB installation
1)
|
System
Requirements
|
a)
|
Connection
of the 110 LNB/Combiner kit when specified or required for a customers
programming choices
|
b)
|
Proper
connection of the multi-beam multiswitch, if
required
|
2)
|
HDTV
Requirements
|
a)
|
Optimize
the connection of the HDTV receiver to the HDTV capable TV or adaptive
equipment using all cabling supplied with the HDTV
receiver
|
b)
|
Verification
of the receipt and quality of the HDTV channels
|
c)
|
Instruction
to the customer of where the HDTV channels are
located
|
3)
|
PARA
TODOS Requirements
|
a)
|
Verification
of the receipt and quality of the PARA TODOS
channels
|
b)
|
Instruction
to the customer of where the PARA TODOS channels are
located
|
c)
|
Instruction
on changing the menu language to/from English to
Spanish
|
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
The
Basic
DIRECTV residential installation includes the following:
1.
|
Phoning
the customer and confirming account information and installation
times
within the designated limits established by DIRECTV
|
2.
|
A
reminder phonecall to Customer day of the scheduled appointment and
arrival at customers residence within the designated window of
time
|
3.
|
Completion
of a site survey with customer’s
permission
|
4.
|
Planning
the installation with the customer (Cable routing, antenna location,
connection of devices and discussing future
options)
|
5.
|
Notification
to customer and Contractor management of any additional (non-standard)
charges prior to commencement of any
work.
|
6.
|
Properly
mounting and aligning an 18 inch satellite antenna with dual output
LNB
|
7.
|
Routing
and properly attaching quality RG6
Cable
|
8.
|
Cable
routing through one exterior and one interior
wall
|
9.
|
Grounding
to meet Local/ NEC requirements
|
10.
|
Installation
of one DIRECTV System IRD
|
11.
|
Connection
to an active telephone line capable of dialing
out
|
12.
|
Tuning
the antenna alignment to peak
performance
|
13.
|
Completion
of a system test verifying signal strength, access card match and
telephone connectivity. For signal strength verification, the technician
shall fine tune the satellite antenna to achieve the maximum signal
strength available. In all signal testing, the technician shall achieve
a
minimum signal level at each IRD of “80” on satellites in the 101º orbital
slot (Satellite A) using the signal level meter feature of the IRD
and
verify and record levels on transponders 2, 5, 16, 17, 29 and 30.
If a
MultiSat antenna is used, it will be tuned to achieve a minimum signal
level of “80” on Satellite A on the transponders previously listed and a
minimum signal level of “65” on Satellite B transponders 22, 26 and 30. In
the event that, after using best efforts, Contractor determines these
minimum signal levels cannot be achieved in optimal weather conditions
within a specific DMA, Contractor shall inform DIRECTV of this and
DIRECTV, in its reasonable discretion, may grant a variance from
the
minimum standard for that DMA; provided, however, that such variance
shall
be in writing and subject to change by
DIRECTV.
|
14.
|
Connection
of existing off-air antenna or active cable drop (enabling TV set
to
function as it had prior to DIRECTV
installation)
|
15.
|
Connection
of co-located devices (VCR, existing surround sound, DVD, video games,
etc) using the best signal-strength connection components possible
(i.e.,
composite, component, DVI, HDMI or other future products)
|
16.
|
Cleaning
up any mess made during installation and removing debris from the
customers residence
|
17.
|
Activation
of DIRECTV service with the customer on the
phone
|
18.
|
Customer
education on system operation and features (min. 20
minutes)
|
19.
|
Completion
of Customer Installation Checklist and obtaining customers signature
certifying the job was completed to their
satisfaction
|
20.
|
Leaving
installation company name and telephone number with the customer
enabling
them to contact the installation Contractor directly if there are
any
problems with the installation (business
card)
|
In
no event shall Contractor skip any of the above steps when installing a Customer
within an MDU structure which has been previously wired for L-band distribution
of the DIRECTV Service (an “MDU Resident”). All such MDU Residents must receive
signal from his/her own installed antenna. If an antenna cannot be installed
for
any reason, the Work Order is to be cancelled and the MDU Resident is to be
informed that he/she needs to contact the building manager in order to receive
information about receiving the DIRECTV Service.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
Advanced
Products Installation Checklist
1.
|
DVRs
require continuous phone connections without exception (remote phone
jacks
are not compatible with Advanced Products).
|
2.
|
For
all Advanced Product installations or upgrades you will need the
following:
|
a.
|
F
fittings
|
b.
|
Single
RG6 cable
|
c.
|
*
Dual Line RG6 cable
|
d.
|
*
Dual Ground Blocks
|
e.
|
Standard
tools
|
f.
|
Spare
Dual LNB
|
3.
|
If
a customer currently has an 18" ODU with a single LNB and they are
keeping
the 18" ODU it will have to be upgraded to a dual LNB prior to any
other
steps.
|
4.
|
Each
advanced product requires 2 ports. Each standard receiver requires
1 port.
Sum the ports to determine the switch configuration needed. Examples:
|
a.
|
1
advanced product and 2 standard receivers = 4 ports
|
b.
|
2
advanced products and 1 standard receiver = 5 ports
|
5.
|
If
the customer’s equipment will use a 18"
ODU
and will require:
|
a.
|
2
ports
--- DUAL LNB
|
b.
|
3
to 4 ports
--- 2x4 multi-switch
|
c.
|
5
to 8 ports
--- 2x8 POWERED
multi-switch
|
6.
|
If
the customer’s equipment will use a 18"x20"
ODU
and will require:
|
a.
|
2
ports
--- Use existing switch
|
b.
|
3
to 4 ports
--- Use existing 4x4 switch (if the customer’s existing switch is a 4x2
switch it will have to upgraded to a 4x4 switch)
|
c.
|
5
to 8 ports
---
|
i.
|
4
HFS 2-way splitters (power passive)
|
ii.
|
2
dual ground blocks
|
iii.
|
2
4x4 multi-switches
|
iv.
|
(if
the customer’s existing switch is a 4x2 switch it will have to upgraded to
a 4x4 switch)
|
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
2.c.
PERSONNEL,
VEHICLES AND UNIFORMS
A. Personnel. With
respect to any employee or Approved Subcontractor, as defined below, who is
assigned by Contractor to perform its duties under this Agreement, any part
of
which requires entrance by the employee onto property owned or rented by a
DIRECTV customer, or any other citizen of the community, Contractor warrants
that such individual is qualified, able and suitable to perform the duties
assigned in a good, professional and workmanlike manner and with care and
concern for DIRECTV, DIRECTV’s customers, third parties and any of their
property, and that they have successfully completed SBCA Certified Installer
Training (or other DIRECTV-approved training program) and have been otherwise
properly trained to perform and provide the Services hereunder (Services could
expand requiring specific DIRECTV training). Specifically, Contractor shall
only
allow those employees and Approved Subcontractor technicians who have
successfully completed the applicable DIRECTV-approved training program to
perform those Services which require a certain minimum level of training (i.e.,
Grades 1-3 DIRECTV commercial installation certification). In the event that
Contractor is considering offering employment to an individual then currently
employed by another installation and service contractor of DIRECTV, Contractor
shall inform DIRECTV of this decision prior to any offer of employment being
made. Throughout the Term, Contractor shall maintain an accurate database
setting forth the skill sets and training programs completed by each of its
technicians and such data shall be subject to independent review by DIRECTV
pursuant to Section 2.d of the Agreement. In addition, Contractor hereby agrees
to include a reasonable background check and drug screen on potential employees
within its standard hiring/operating policies with respect to those individuals
whose employment shall include performing the Services. Specifically, Contractor
shall ensure that:
(i)such
individual has been required to take a drug test for those controlled substances
as dictated by Contractor and the results of the test were negative prior to
the
offering of employment; and
(ii)a
criminal background check was performed on such individual and the check
revealed no convictions for felonies or other information which would indicate
that the individual is a danger to DIRECTV, its customers, third parties or
any
of their property.
B.Subcontractors.
In no
event shall Contractor appoint or allow any third party or subcontractor (each
a
“Subcontractor) to perform and provide any Services prior to (i) that
Subcontractor representing and warranting that it performs a reasonable
background check and drug screen of its technicians, (ii) that Subcontractor
receiving and successfully completing SBCA Certified Installer Training (or
other DIRECTV-approved training program) for each applicable technician, as
determined by DIRECTV in its sole discretion and (iii) receiving an approval
from DIRECTV (each an “Approved Subcontractor”), which approval may or may not
be granted in DIRECTV’s discretion; provided, however, that in any DMA in which
Contractor is authorized to perform the Services, Contractor shall not permit
Approved Subcontractors to perform more than [****]
of
Contractor’s aggregate Work Orders in any particular DMA in any given accounting
month during the Term, without the prior written approval of DIRECTV. In the
event Contractor engages or otherwise utilizes Approved Subcontractor(s) in
the
performance of Services as set forth herein, Contractor shall cause such
Approved Subcontractor(s) to comply with and abide by the terms, conditions
and
restrictions imposed upon Contractor as set forth in this Agreement, including
all attachments and exhibits related thereto; provided, however, that Contractor
shall be solely responsible for the methods, techniques, sequences, and
procedures of the Services to be provided hereunder and the timely completion
of
each Work Order performed by such Approved Subcontractor(s), if any; provided,
further, that the utilization of a Subcontractor may be expressly forbidden
pursuant to the specific terms of the attached Statement of Work applicable
to
the contemplated Service. On a monthly basis, Contractor shall be obligated
to
provide to DIRECTV, a written list of a) Approved Subcontractors who actually
performed Services and b) the aggregate number of each type of Work Order
performed by each such Approved Subcontractor during the prior month. All
Approved Subcontractor usage data provided to DIRECTV shall be subject to
verification by DIRECTV as set forth in paragraph 2.g. In addition, each
Approved Subcontractor shall be identified in CSG’s Workforce Express, or any
successor system, such that DIRECTV may at all times determine the labor
capacity of each such Approved Subcontractor. DIRECTV, in its sole discretion
and upon notice to Contractor, may terminate the Approved Subcontractor status
of any such third party or subcontractor and Contractor may not engage or
otherwise utilize such third party or subcontractor in the performance of
Services as set forth herein unless and until DIRECTV, in writing, reinstates
such third party or subcontractor as an Approved Subcontractor, if ever. In
addition to Approved Subcontractors who shall be performing Services hereunder,
Contractor may elect to deploy third parties with respect to certain call center
and/or data management activities. In no event shall any such third party vendor
have access to any DIRECTV Confidential Information, as defined in Section
23.a.
of the Agreement, prior to DIRECTV’s (i) written approval of such third party
vendor, and (ii) receipt of a fully executed confidentiality agreement,
including terms and conditions materially consistent with Section 23, by and
between Contractor and such third party vendor (at which point such third party
vendor would become an Approved Subcontractor).
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
C. Identification
Cards.
Contractor, at its own expense, will provide identification badges to be worn
by
personnel, including Approved Subcontractors, engaged in the performance of
Contractor’s duties under this Agreement. DIRECTV shall provide Contractor with
a generic ID card template to be used. Such badges will include the name,
address and telephone number of Contractor, in addition to a photograph and
the
name of the individual wearing the badge. The identification badges will be
displayed by all Contractor personnel at all times while performing the Services
and shall indicate that the installer is an authorized DIRECTV installer. In
addition, installers and maintenance personnel will present a professional
appearance at all times and will wear DIRECTV uniforms, as set forth below.
Qualifications for performance shall include, but not be limited to,
customer-relations skills, technical skills and adherence to dress standards.
Employees shall identify themselves as Contractor's employees, not
DIRECTV
employees, in any circumstance where identification is necessary.
D. Vehicles.
DIRECTV
requires that no less than eighty percent (80%) of all Work Orders performed
shall be carried out by technicians driving vehicles meeting DIRECTV’s
standards. Therefore, Contractor’s aggregate vehicle fleet, including those
vehicles used by any Approved Subcontractor shall consist of no less than 80%
of
new or like-new and damage-free, OSHA-compliant, white
vans or
trucks with matching, white truck-bed shell. In addition, while no more than
twenty percent (20%) of all vehicles, either HSP or Approved Subcontractor
or
both, may be a color other than white, each such vehicle shall be new or
like-new and damage-free, OSHA-compliant vans or trucks. DIRECTV’s specific
standards as to what shall constitute new or like-new, as well as the trademark
guidelines, shall be clearly set forth within the DIRECTV vehicle approval
policy. This 80% minimum number must be reached by August 31, 2005, subject
to
the following, minimum ramp-up schedule:
20%
of
fleet to be compliant by April 30, 2005
40%
of
fleet to be compliant by May 31, 2005
60%
of
fleet to be compliant by June 30, 2005
70%
of
fleet to be compliant by July 31, 2005
80%
of
fleet to be compliant by August 31, 2005
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
Failure
by Contractor to meet this fleet requirement shall be considered a material
breach of this Agreement. Only vehicles owned or leased as
well as
insured
by Contractor, or the Approved Subcontractor, if applicable, will be considered
for eligibility under the minimum fleet requirement. Contractor shall clearly
identify all vehicles and other major equipment operating under the authority
of
this Agreement with Contractor’s name and phone number as a service provider for
DIRECTV or such other entity as DIRECTV may reasonably direct. Contractor shall
display the DIRECTV logo on all vehicles and other major equipment it operates
under this Agreement in accordance with the terms hereof and in accordance
with
the terms of the trademark and logo guidelines provided by DIRECTV. In addition,
any vehicle used by an Approved Subcontractor that displays the DIRECTV logo
shall (i) clearly identify the vehicle as a contractor vehicle (including the
phone number of the Approved Subcontractor), and (ii) only be in the form of
a
magnetic decal which shall be removed by the Approved Subcontractor at all
times
when such vehicle is not performing services on behalf of DIRECTV. In no event
shall Contractor place, or allow any Approved Subcontractor to place, any
DIRECTV markings on any vehicle not meeting the standards as set forth in the
vehicle approval policy. All vehicles used by Contractor in the performance
of
the Services shall be kept clean and shall be maintained in accordance with
reasonable standards specified by Contractor.
E.
Uniforms.
Contractor shall require that all of its technicians, including all Approved
Subcontractor technicians, performing Services within the residences or
commercial establishments of DIRECTV customers wear no less than the approved
DIRECTV shirt and cap while performing the Services. In addition, all
technicians shall wear DIRECTV-approved pants while performing any Services.
Such shirts or caps shall be offered to Contractor from DIRECTV, or its agent,
at DIRECTV’s published prices. All other DIRECTV uniform items (including
jackets) may be purchased by Contractor from DIRECTV, or its agent, at its
discretion, but shall not be required attire under this Agreement.
Notwithstanding the foregoing, Contractor may, on its own, purchase collared,
uniform shirts from a third party and shall affix a DIRECTV logo/patch, at
Contractor’s sole cost, in the exact same manner and appearance as is provided
with the DIRECTV shirts; provided, however, that DIRECTV shall approve such
shirt prior to implementation by Contractor (DIRECTV’s approval shall be based
on the proposed shirt’s reasonable similarity to the uniform shirt provided by
DIRECTV with respect to color and style).
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
2.e.
CONTRACTOR
CONTACT LIST
Xxxx
XxXxxxx 000 000-0000
Fax
000 000-0000
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
3.
CONTRACTOR
INSTALLATION & SERVICE RESPONSIBILITIES
a. General.
Contractor shall, (i) furnish all necessary materials, labor, tools, and
equipment required for the successful completion of each Fulfillment Service
hereunder; (ii) during the course of performing a Fulfillment or Service Work
Order, avoid the accumulation of excessive, unsightly, or dangerous waste
material, and shall ensure the orderly removal and disposal thereof; (iii)
furnish and pay for all required licenses and permits, and post any bonds or
security required under applicable laws, with respect to all Services performed
by Contractor; (iv) be solely responsible for the methods, techniques,
sequences, and procedures of DIRECTV System installation and other Services,
if
any, and the timely completion of each Work Order; (v) provide information
regarding such DIRECTV System installation and other Services, if any, as
reasonably requested by DIRECTV, in a format reasonably acceptable to DIRECTV;
and (vi) abide by all local, state and Federal laws, statutes, rules,
regulations and ordinances including applicable Consumer Protection Acts. In
all
of its activities as a representative for DIRECTV, Contractor shall conduct
itself in a commercially reputable and ethical manner and shall engage in no
deceptive sales practice or other practice which impugns DIRECTV's reputation
and goodwill.
(i) Customer
Ownership.
In
performing and providing the Fulfillment Services for DIRECTV customers,
Contractor shall not obtain any ownership or otherwise any right to such DIRECTV
customers or customer information related thereto (collectively, the “Customer
Information”). As between DIRECTV and Contractor, the Parties agree and
acknowledge that the Customer Information is confidential information of
DIRECTV, and the use and dissemination of such Customer Information shall be
subject to Section 23 herein.
(ii) Training.
Contractor agrees to provide at all times a qualified and fully-trained
administrative, installation, and service staff. In performing and providing
the
Services hereunder, Contractor agrees to develop and implement at its expense
adequate training programs based on specifications provided by DIRECTV, and
Contractor shall attend all training programs requested by DIRECTV. In addition,
DIRECTV, in its sole discretion, may produce and distribute to Contractor,
certain training materials by video broadcast or in video tape or CD ROM format.
Such materials shall be made available to all technicians, including Approved
Subcontractors by Contractor.
Contractor
shall provide a “hands on” training facility at each warehouse / plant location
where eight (8) or more technicians report on a regular basis (daily or weekly).
“Facility” shall be defined as a permanent, or mobile unit that includes, but is
not limited to, IRD(s) (including advanced services), ODU(s), television,
VCR/DVD, wiring diagrams, cable, drop materials, and specific tools used in
DIRECTV installation and service. Contractor acknowledges and agrees that its
provision of certain Services shall require the completion of specific training
programs necessary to perform the tasks as set forth in the applicable Statement
of Work. Certain training sessions or materials shall require that Contractor
obtain signatures from each technician that may be scheduled to perform the
Services addressed in the particular training session. Such proof of receipt
of
training via technician signatures shall be subject to audit by DIRECTV.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
b.Installation
and Service Specifications.
(i) Contractor
agrees that all Services provided by Contractor pursuant to this Agreement
will
be performed in a good and workmanlike manner in accordance with this Agreement,
including the applicable Work Order and the Policies and Procedures. Contractor
and Approved Subcontractors shall thoroughly study and know the contents of
such
Policies and Procedures and shall keep the most current form of such Policies
and Procedures in their vehicles at all times as a reference source.
(ii) Contractor
warrants the quality and workmanship of all Services for the first twelve (12)
months from the date of provision of such Services (unless otherwise set forth
in the applicable Statement of Work), and shall timely repair or fix any defects
in the Services provided, or otherwise re-perform the Services during the said
time period without charge to DIRECTV or the customer.
(iii) In
the
event that Contractor materially breaches the obligations in the provision
of
the Services hereunder, in addition to the termination and other rights DIRECTV
may have hereunder, Contractor shall be responsible and liable for all costs
and
expenses incurred by DIRECTV in properly providing the Services and inspecting
Contractor’s work; provided, however, that Contractor shall be solely liable for
any damage to private or public property resulting in its provision of the
Services, irrespective of the date on which such damage may manifest itself,
and
shall indemnify DIRECTV with respect to any such claims pursuant to section
18
hereunder.
(iv) Contractor
will obtain appropriate information and required locations with respect to
the
location of buried cables and utilities prior to performing any excavation
or
underground work and will locate, expose and protect from damage all existing
underground facilities, including electrical, telephone, water, gas, sewer
or
other utilities. All location services must be performed in a timely manner
to
enable Contractor to meet the performance standards set forth
herein.
(v) In
all
installations of DIRECTV Systems where the customer has a phone line, whether
working or not, Contractor shall use the phone line to connect each and every
DIRECTV IRD in such DIRECTV customer's premises. Contractor shall make every
effort to have the DIRECTV IRD successfully pass a phone test and receive an
impulse authorization.
(vi) Contractor
shall utilize only those contractual forms/agreements to be signed by DIRECTV
customers upon installation/activation as prescribed by DIRECTV (the “DIRECTV
Forms”). No modification to such DIRECTV Forms shall be permitted without
DIRECTV’s prior written consent. With respect to each Service provided by
Contractor hereunder, Contractor agrees that it will complete and obtain copies
of the applicable DIRECTV Forms and will timely process and file the hard copies
of such DIRECTV forms in accordance with DIRECTV procedures. Contractor shall
provide the original or a copy of each completed DIRECTV Form to DIRECTV upon
DIRECTV’s request.
(vii) Upon
completion of a Fulfillment Service, Contractor shall remove all of its tools,
equipment and materials from the area, will leave the area clean and ready
for
use and shall restore the area to the same condition as it was prior to the
performance of the Services.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
(viii) On
a
monthly basis, Contractor shall quality-inspect no less than six percent
(6%) of
the Fulfillment Services performed by Contractor and identified by DIRECTV
during the preceding calendar month and such work shall have a Quality
Control
pass rate of at least ninety percent (90%)
(based
on the “Quality Control Form” included in the Policies and Procedures as
provided by DIRECTV). Each inspection must include no less than one quality
control picture of the DIRECTV System antenna at each inspected project,
which
pictures shall be maintained by Contractor in a neat and organized file,
and
forwarded to DIRECTV along with Contractor’s inspection reports upon DIRECTV’s
request. For each inspection, Contractor shall use the form issued by DIRECTV
as
the same may be reasonably modified by DIRECTV from time to time. Said
form,
along with the name of the technician being inspected and the date of inspection
shall be filed within Contractor’s applicable field office and available for
review by DIRECTV. Contractor shall make necessary repairs based on such
inspection without additional compensation from DIRECTV or the applicable
DIRECTV customer. Any and all quality inspection of the Services provided
hereunder shall be performed by an employee of Contractor (supervisor or
above)
other than the employee or the individual who actually performed such Services.
In no event shall an Approved Subcontractor perform any quality inspection
on
behalf of Contractor. Any failure by Contractor to perform the minimum
number of
inspections as required hereunder(and/or failure to achieve the minimum
pass
rate for such work inspected) for two consecutive measuring periods shall
be
deemed a material breach of this Agreement.
(ix)In
the
event of a Service Call Work Order requiring the deployment of DIRECTV Hardware,
Contractor shall be required to use refurbished DIRECTV Hardware as opposed
to
new DIRECTV Hardware. It shall be Contractor’s responsibility to manage its
supply of refurbished DIRECTV Hardware and timely order additional materials
when needed. Contractor’s use of new DIRECTV Hardware when refurbished DIRECTV
Hardware is, or should have been, available will subject Contractor to a
chargeback in each such case where DIRECTV, in its reasonable discretion,
determines that Contractor could have reasonably prevented the deployment of
new
DIRECTV Hardware as opposed to refurbished DIRECTV Hardware.
c. Ancillary
Work.
In some
instances DIRECTV customers, or the recipient of the Services provided
hereunder, may contract with Contractor to provide ancillary services related
to
the Services, but not specifically called for by DIRECTV within the Work Order
(“Ancillary Work”). For purposes of an example only, such Ancillary Work may
include the installation or relocation of an off-air antenna, the running of
additional cable or a sidewalk bore. In the event Contractor agrees to provide
such Ancillary Work, the actual rates for such services shall be negotiated
and
agreed to in writing
by
customer and the Contractor prior to the commencement of such Ancillary Work.
In
such event, Contractor is operating as an independent contractor and is not
an
employee or agent of DIRECTV nor shall DIRECTV be a party to such transaction.
In no event shall DIRECTV be responsible for the performance of Contractor
with
respect to any Ancillary Work nor shall DIRECTV warrant or guarantee the
performance of Contractor with respect to the Ancillary Work. In performing
Ancillary Work, Contractor shall provide customer reasonable written
notification within its contract or work order form that DIRECTV is not the
party providing the Ancillary Work. Notwithstanding the foregoing, Contractor
warrants the quality and workmanship of all Ancillary Work for no less than
first twelve (12) months from the date of provision of such service, and shall
repair or fix any defects in the Ancillary Work provided, or otherwise
re-perform the services during the said time period at no additional charge
to
the customer. In addition, Contractor agrees to charge the customer no more
than
reasonable market rates for the specific services provided (see DIRECTV’s
recommended rates for Ancillary Work in the P&P, as defined in Section 2.4
of Exhibit 3.i.) .
d. Materials.
Contractor shall provide, at its own expense, all materials necessary to
complete the Fulfillment Service hereunder (the "Drop Materials"). Exhibit
3.d.,
attached hereto and incorporated herein, contains a list of Drop Materials
that
Contractor shall possess throughout the Term.
e. Response
Times.
(i) Scheduling.
Prior
to receiving connectivity with DIRECTV’s customer management system, as
described in Section 2(a) above, Contractor shall have sufficient labor
available to meet DIRECTV’s response times as set forth below and shall inform
DIRECTV’s dispatcher weekly of Contractor’s availability on a 90-day rolling
forecast. After receiving connectivity with DIRECTV’s customer management
system, Contractor agrees to enter, monitor and maintain a specified amount
of
time, seven (7) days a week, for morning appointments and afternoon appointments
(or that appointment window as dictated by DIRECTV should DIRECTV elect to
shorten the appointment window) on the scheduling management system for each
assigned area to Contractor for Fulfillment Service responsibilities, during
which Contractor will be available to respond to Fulfillment Service Calls
scheduled in the system (the "Scheduling Quota"). Contractor agrees to maintain
the Scheduling Quota for thirty (30) days in advance of each day, regardless
of
fluctuations due to DIRECTV promotions or otherwise. Contractor shall manage
the
Scheduling Quota and its technical personnel work schedules so that certain
time
frames, as are determined by DIRECTV, are always available to DIRECTV customers
for the following:
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
(a) Installation
Requests (including primary and additional outlet installations, reconnects,
antenna/outlet relocations and move/transfers): Appointment always available
within seventy-two (72) hours of DIRECTV’s or DIRECTV customer’s request;
(b) Service
Call Requests (including all maintenance and repair calls): Appointment always
available within twenty-four (24) hours of the creation of the applicable
Service Call Work Order by DIRECTV (or the specific date requested by the
DIRECTV customer if beyond the next day); and
(c) Equipment
Retrieval Requests: If applicable, appointment always available
within
seventy-two (72) hours of DIRECTV’s or DIRECTV customer’s request.
With
respect to all scheduling, Contractor shall be required to maintain current,
valid individual technician information (e.g., name, skill-set, shift, etc.)
on
a daily basis.
(ii) Installations.
(a) Contractor
shall be fully prepared to perform and complete all assigned, scheduled
Fulfillment Service appointments on the scheduled date and within the scheduled
appointment window, even if Contractor is unable to confirm such appointment
with the DIRECTV customer. If a DIRECTV customer is not at the premises at
the
time of a scheduled appointment, Contractor shall leave a missed appointment
door hanger, which shall be provided at Contractor’s sole expense and such door
hanger shall contain Contractor’s name and phone number and such other
information as requested by DIRECTV. Such door hanger must be pre-approved
in
writing by DIRECTV in accordance with the terms of this Agreement.
(b) In
the
event that Contractor is unable to perform and complete all assigned, scheduled
Fulfillment Service appointments on the scheduled date and within the scheduled
appointment window, Contractor shall promptly contact the DIRECTV customer
by
telephone to notify the DIRECTV customer of the scheduling problem prior
to
the
scheduled appointment time. Contractor shall promptly reschedule the appointment
at the earliest time convenient to the DIRECTV customer, indicate the
rescheduled appointment and the reason(s) therefor on its scheduling calendar;
provided, however, that DIRECTV reserves the right to, upon notice to
Contractor, immediately reassign such Fulfillment Service Work Order to another
party in the event that such Work Order was not timely performed due to
Contractor’s fault. In such case, Contractor shall not receive any compensation
related to such Service and may, pursuant to Exhibit 3.e.(v), subject Contractor
to a charge as a result of the missed appointment.
(c) All
Fulfillment Services shall be completed as scheduled.
(iii) Maintenance
and Service Calls.
All
maintenance and Service Calls dispatched to Contractor by DIRECTV shall be
completed as scheduled. In the event that Contractor does not meet the “no later
than next day” window for Service Calls, DIRECTV shall have the right to
transfer the Work Order to another party and to charge Contractor for service
work in the amount incurred by DIRECTV for the transferred Service Call Work
Order. Contractor shall be required to bring back to specification any
installation of a DIRECTV System found to be out of specification, regardless
of
the original nature of the Service Call.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
(iv) Rescheduling.
In the
event DIRECTV customer requests a rescheduling of an appointment through
Contractor, Contractor shall promptly notify DIRECTV of such request and the
rescheduled appointment time and date. Contractor shall monitor all rescheduling
of Work Orders by DIRECTV and shall complete the rescheduled appointment
pursuant to the terms as set forth herein.
(v) Performance
Standards; Customer Interviews.
Contractor shall be required to meet the performance standards (the “Performance
Standards”) described herein and as set forth in Exhibit
3.e.(v).
In
addition to the specific Performance Standards, DIRECTV shall interview by
phone
or other method, any number of newly-installed customers to obtain feedback
on
such customer’s overall installation experience as provided by Contractor
(“Customer Interviews”). Such Customer Interviews will address issues including,
but not limited to, installation scheduling and performance, technician neatness
(uniform compliance) and professionalism, DIRECTV Service demonstration by
the
Contractor technician, and costs related to Ancillary Work, if any. Contractor,
at its sole cost, shall be required to provide retraining (as provided by
DIRECTV) of all Contractor technicians should DIRECTV reasonably believe that
Contractor’s technicians are performing in a substandard manner with respect to
any particular process within the overall installation experience. Any
particular data collected regarding Contractor appointment scheduling shall
be
included in the applicable monthly calculations by DIRECTV of the Performance
Standards.
f. Equipment
Retrievals.
In the
event that DIRECTV institutes an equipment retrieval program for disconnected
DIRECTV customers, Contractor shall pick up the DIRECTV System, including the
access card, from a DIRECTV customer as scheduled or, if dispatched, within
seventy-two (72) hours of being dispatched by DIRECTV. Contractor agrees that
upon receipt/retrieval of the specified DIRECTV System and, unless otherwise
instructed by DIRECTV, Contractor shall either (i) promptly forward the receiver
and access card to DIRECTV’s hardware reburbisher, or (ii) forward the access
card(s) for such DIRECTV System to DIRECTV (or DIRECTV’s appointed agent), clean
the outside of the IRD and repackage it for reissuance to DIRECTV customers,
and
follow any other DIRECTV policies and procedures as may be established and
amended from time to time. Contractor shall be compensated for completed
equipment retrieval Work Orders pursuant to the terms of Exhibit
4.a.(i).
g. Education;
Customer Follow-up.
Contractor shall, at the time of installation of a DIRECTV System, provide
each
DIRECTV customer with adequate customer education, as set forth in Exhibit
1.a.iii,
regarding the use and operation of DIRECTV System. During each Service Call,
Contractor personnel shall provide DIRECTV customers with adequate education
regarding the nature of the problem leading to the maintenance or other Service
Call and the resolution of such problem. Such customer education shall include
no less than Contractor personnel performing each step set forth in the
Installation Checklist, attached hereto and incorporated herein as Exhibit
3.g.
Contractor shall collect from each applicable customer a completed Installation
Checklist signed by customer and such checklists shall be kept on file at
Contractor’s applicable office for DIRECTV’s review. In addition, Contractor
shall outbound phone call or otherwise contact no less than six percent (6%)
of
the customers, per DMA, installed or serviced by Contractor each month in order
to verify the level of performance provided by Contractor’s technicians. DIRECTV
shall provide to Contractor recommended questions to be posed in such customer
contacts. Such data shall be subject to audit and review by
DIRECTV.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
h. Property
Damage Claims; Other Claims; Injuries.
Contractor shall notify DIRECTV’s designated contact person in writing within
twenty-four (24) hours of each known incident in the course of its installations
or performance of other Services hereunder resulting in property damage or
some
other claim. Contractor shall promptly investigate all such incidences and
reach
resolution satisfactory to DIRECTV and the DIRECTV customer or other affected
party as soon as possible upon notice and not later than that time period set
forth in the Policies and Procedures. During the course of the investigation,
Contractor shall provide periodic status reports to DIRECTV’s designated contact
person within the DIRECTV Home Services Damage Claim Department. To the extent
that Contractor does not comply with this Section 3(h) (or the applicable
Policies and Procedures) or for whatever other reason DIRECTV deems it necessary
to take any action to investigate, defend, or resolve any such incidences,
DIRECTV shall have the right to charge back, invoice or otherwise recoup the
costs of such investigation, defense and resolution from Contractor pursuant
to
the terms of the Damage Claim section of the Policies and Procedures.
Notwithstanding the foregoing, all allegations of bodily injury, other than
those covered under Workers Compensation laws, must be immediately reported
in
writing to DIRECTV’s designated contact person.
i. DIRECTV
System Hardware sold to Contractor by DIRECTV. Throughout
the Term of the Agreement, DIRECTV may require that Contractor purchase DIRECTV
Hardware or System components such as an ODU and/or LNB from DIRECTV and deliver
and provide Services for such DIRECTV System Hardware specifically in the
fulfillment of DIRECTV offers. Such DIRECTV Hardware and/or System components
purchased by Contractor would then be purchased back by DIRECTV upon the
deployment by Contractor of the specific material as documented in the
applicable Work Order. The purchase by Contractor (as well as the re-purchase
by
DIRECTV) of DIRECTV System and/or component inventory, including the execution
and filing of applicable UCC statements shall be performed in accordance with
the terms and conditions of such arrangement as hereby set forth in Exhibit 3.i. Exhibit
3.i.
may be
amended from time to time by the mutual agreement of the Parties.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
3.d.
DROP
MATERIALS; TOOLS
REQUIRED
MATERIALS TO PERFORM EACH WORK ORDER
(subject
to change from time to time)
See
the Service Provider Installation Guide (“SPIG”)
MINIMUM
TOOLS REQUIRED
TO PERFORM EACH WORK ORDER
DIRECTV®
installer only
Inclinometer
w/Compass
Digital
Volt / ohm Meter
Satellite
Signal Strength Meter
ADDITIONAL
TOOLS RECOMMENDED
TO PERFORM EACH WORK ORDER
Adjustable
Wrench 10”
Side
Cutters
7/16”
open end wrench
pliers
needle
nose pliers
Slot
Screwdriver set
Xxxxxxx
Head Screwdriver set
Wire
Strippers
Cable
Prep Tool Set for RG-56
Crimp
Tool to match RG-6 connectors
RJ-11
modular Crimp Tool for Telephone
Telephone
Wire Line Tester
Torque
Wrench
Staple
gun for phone wire application
Hack
Saw
Hammer,
Decking, 20 oz.
Level,
Pole type
Tape
Measure (30’)
English
socket set to ¾” w / ratchet
Metric
socket set to 18mm w / ratchet
Bow
Saw -
30”
Tree
Prune w/ Fiberglass Handle
Cable
Caddy
Drill,
½”
electric
100’
grounded extension cord
Drill,
Cordless, 3/8”
Drill
Bit
¼” x 18” Masonry
Drill
Bit
¼” x 18” Wood Auger
Drill
Bit
3/8” x 18” Wood Auger
Drill
Bit
3/8” x 18” Masonry
Drill
Bit
5/8” x 18” Wood Auger
Drill
Bit
5/8” x 18” Masonry
Drill
Bit
for masonry anchors (3/16")
Fish
Tape
and Reel, 100’
Ladder,
Fiberglass, House minimum 28’
Ladder,
Step 6’
100’
3/8”
rope hand line
Safety
belt with strap
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
Post
hole
Digger (9’ Scissors)
Spud
Bar
72”
Round
Tip
Shovel
Trenching
Shovel
5
Gallon
Pail
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
3.e.(v)
PERFORMANCE
STANDARDS
The
performance standards (the “Performance Standards”) listed below are the minimum
operational standards with which Contractor must comply for all Services
performed under this Agreement. The Performance Standards listed below do not
comprise an all-inclusive list. Contractor is responsible for compliance with
all terms and conditions of this Agreement and DIRECTV’s policies and
procedures, whether or not contained in this Exhibit
3.e.(v).
Performance Standards, other than the customer satisfaction score, shall be
measured on a per DMA basis and are based upon [****]
figures
when measured approximately [****]
after
the end of each [****], unless otherwise provided herein. Source systems to
acquire data for Performance Standards measurement shall include CSG/WorkForce
Express or other workforce management system, STMS and WRQES audit database.
I. INSTALLATION/MOVER
STANDARDS
1. Installation
Work Orders (not including Movers) performed in each [****] measuring period
shall be “closed” within an average of [****] or less from the creation of the
applicable Work Order. For the purposes of this Exhibit, “closed” shall mean
that the specific job related to the Work Order has received final
resolution within the Work Order management system. This maximum [****] average
takes into account a built-in “pad” of an average of [****] whereby DIRECTV
presumes that Contractor would not be in a position to commence any work prior
to the [****] subsequent to the date of Work Order creation.
2 Contractor’s
rate of Installation/Mover No Call/No Show escalations within its reasonable
control (as determined by DIRECTV) related specifically to the pool of Work
Orders scheduled during the applicable monthly measuring period shall not exceed
a rate of [****] of all such Work Orders, within the measuring period.
3. Contractor’s
rate of rescheduled Work Orders shall not exceed [****] of the overall number
of
Work Orders opened during the measuring period.
II. SERVICE
STANDARDS
1.
Service
Work Orders performed in each monthly measuring period shall be “closed” within
an average of [****] days or less from the creation of the applicable Work
Order. For the purposes of this Exhibit, “closed” shall mean that the specific
job related to the Work Order has received final
resolution within the Work Order management system.
2. Contractor’s
rate of Service Call No Call/No Show escalations within its reasonable control
(as determined by DIRECTV) related specifically to all Service Call Work Orders
scheduled during the applicable measuring period shall not exceed a rate of
[****] of all such Service Call Work Orders.
3. Service
Calls within [****] of prior visit: Closed Service Call Work Orders to the
same
address opened within [****] of the close date of any prior visit (irrespective
of whether the prior visit was for an installation, movers, upgrade or service
call) shall not exceed [****] of the applicable [****] closed Work Order
volume.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
III. UPGRADE
STANDARDS
1.
Upgrade
Work Orders performed in each [****] measuring period shall be “closed” within
an average of [****] from the creation of the applicable Work Order. For the
purposes of this Exhibit, “closed” shall mean that the specific job related to
the Work Order has received final
resolution within the Work Order management system.
2. Contractor’s
rate of Upgrade No Call/No Show escalations within its reasonable control (as
determined by DIRECTV) related specifically to all Upgrade Work Orders scheduled
during the applicable measuring period shall not exceed a rate of [****] of
all
such Upgrade Work Orders.
IV. CUSTOMER
SATISFACTION
1.
Contractor shall achieve a [****] blended customer satisfaction score
across
Contractor’s entire territory,
based
on customer interviews conducted by a third party, of no less than
[****].
For
each DMA meeting or exceeding both the Performance Standard metrics above,
as
well as the additional metrics as set forth in Attachment A hereto, during
the
monthly measuring period shall entitle Contractor to specific incentive bonuses
in accordance with the terms and conditions set forth in Attachment A. Failure
by Contractor to comply with any one of the above Performance Standards, as
calculated on a [****]
basis, FOR [****]
within a particular DMA shall be deemed a material breach of this Agreement;
provided, however, that the customer satisfaction score shall not be DMA-based.
In the case of the customer satisfaction score, failure to achieve the minimum
score for [****]
shall be deemed a material breach by Contractor. Contractor shall have thirty
(30) days from receipt of written notice of such failure to cure its default
as
is set forth in section 8.b. of this Agreement (performance, in this case,
shall
be measured during the thirty (30) day period following the date of receipt
of
such notice). Failure by Contractor to cure its material breach within this
thirty (30) day period, may result in immediate termination by DIRECTV at its
sole discretion. Any failure by Contractor to comply with any particular
Performance Standard (other than the customer satisfaction score) for more
than
three (3) months in any twelve (12) month period during the Term within a
particular DMA shall, upon written notification from DIRECTV, constitutes a
non-curable material breach, providing DIRECTV with the option to immediately
terminate this Agreement pursuant to section 8.c. of this Agreement. In either
event, DIRECTV may, short of termination, elect to remove Contractor from any
current DMA (both performing and nonperforming) should Contractor be unable
to
cure the breach of these performance standards within the allotted cure
period.
In
addition, for each individual No Call/No Show escalation that was within
Contractor’s reasonable control to prevent, as determined by DIRECTV, DIRECTV
shall charge back Contractor an amount equal to [****]
as liquidated damages for the missed appointment.
* The
customer satisfaction score
shall be
determined by an overall, basic rating by the DIRECTV customer as to the outcome
of the services (both Fulfillment and Service Calls) provided by Contractor
(specifically, a rating by the customer of being “not satisfied,” “somewhat
satisfied” or “very satisfied” with the performance of Contractor as it relates
to the Services required by the applicable Work Order assigned by DIRECTV to
Contractor). A passing customer satisfaction score shall equate to no
less than [****]
out of
every [****]
customers’ acknowledgment of being either “somewhat satisfied” or “very
satisfied” with Contractor’s performance. Telephone interviews of each such
customer shall be conducted by DIRECTV or DIRECTV’s authorized agent.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
3.g.
INSTALLATION
/ SERVICE SATISFACTION CHECKLIST
Welcome
to DIRECTV! We want to ensure we meet your service and installation
expectations. Please take a moment to examine the lists below and place your
initials in the space provided to indicate that each item has been fulfilled.
If
you find an item in the DIRECTV System Education Checklist that has not been
explained, please prompt the installer to provide a thorough explanation. Enter
"N/A" (not applicable) for any sections that are not relevant to your
installation/service call.
Please
check one: Installation Service Call
To
be
completed by technician: Job #: Tech ID #
DIRECTV
Installation / Service Checklist
A
phone representative explained what is included in a Standard Professional
Installation before the installer arrived
The
installer who completed my installation / service call: Called to confirm my
appointment the day before the scheduled installation / service call
Called
the day of the installation / service call to advise he was en route to my
home
Was
on time (arrived within scheduled appointment window)
Had
neat appearance
Had
proper identification
Performed
a site survey with me, indicating where the satellite dish would be positioned
Explained
the installation process prior to starting any work
Explained
any additional installation / service call charges before starting work
Called
a DIRECTV representative and confirmed that programming was active
Explained
the importance of the telephone hook-up
Explained
that I must maintain a working telephone line connected to all my DIRECTV System
receivers
Ensured
installation or service area was clean and orderly upon completion of work
Resolved
all problems related to service call issue
Provided
company name and telephone number to contact if there are any problems with
the
installation / service call
Left
a copy of the owner’s manual and showed what it covers
DIRECTV
System Education Checklist
The
installer thoroughly explained how to operate my DIRECTV System and remote
control including how to:
1. Turn
the DIRECTV System, television and VCR (if applicable) on and off using the
remote control
2. Change
channels on the DIRECTV System and the remote
3. Turn
the volume up and down using the remote control
4. Set
up parental controls ("Locks and Limits") and favorite channels lists
5. Access
and navigate the on-screen programming guide and how to check on-screen signal
strength
6. Purchase
Pay Per View programming with my remote control
7. Switch
between my DIRECTV® programming and off-air antenna/cable channels
8. Record
DIRECTV® programming with my VCR/DVR (if applicable)
Were
you satisfied with your installation / service call (please circle one)? YES
NO
Thank
you
for taking the time to complete this checklist. This information is essential
for DIRECTV to monitor our customers’ installation / service call experience and
enables us to continually improve the quality of service to our new / existing
customers.
I
request that DIRECTV add its Protection Plan service to my account.
Customer
Signature: __________________________
I
hereby
acknowledge that my (i) DIRECTV System, as ordered, has been installed to my
satisfaction, and (ii) certified professional installer has thoroughly reviewed
each item on this checklist to my satisfaction.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
Customer
Signature: _______________
|
Print
Name: ____________________
|
Date:
_____________
|
EXHIBIT
3.i.
SALE
OF NEW AND REFURBISHED DIRECTV SYSTEMS AND COMPONENTS TO
CONTRACTOR
I.
|
THE
USE OF CONTRACTOR-OWNED DIRECTV SYSTEM
HARDWARE
|
1. SALE
OF DIRECTV SYSTEMS.
1.1 SALE.
From time to time during the term of this Agreement, DIRECTV agrees to sell
to
Contractor, and Contractor agrees to buy, DIRECTV System components (including
individual new and refurbished receivers, XXXx and LNBs) (collectively, “DIRECTV
System Components”), solely for use in connection with DIRECTV customer
installations and service work as described in Section 5 below, in such quantity
as is reasonably determined by both Contractor and DIRECTV, through modes of
transportation as reasonably determined by DIRECTV. As between DIRECTV and
Contractor, DIRECTV shall be solely responsible and liable for any and all
costs
and expenses related to the shipment of all DIRECTV System Components to
Contractor under this Agreement, subject to the conditions set forth in Section
2.5 below. Contractor
hereby agrees that it will only use the DIRECTV System Components purchased
from
DIRECTV hereunder for DIRECTV-assigned Work Orders which require the consumption
of such Contractor-owned DIRECTV System Components and for no other purpose
whatsoever, including, but not limited to, Contractor’s own sales initiatives,
if any.
1.2 TITLE.
The
title to each and every DIRECTV System Component sold and shipped to Contractor
hereunder shall remain with DIRECTV until such DIRECTV System Component is
delivered to, and accepted by, Contractor or to its consignee. Notwithstanding
anything to the contrary contained herein, upon receipt of DIRECTV System
Components, and until such DIRECTV System Components are provided to a DIRECTV
Customer and accepted by such DIRECTV Customer, Contractor shall remain liable
for any and all losses, thefts, damages or otherwise (collectively,
“Casualties”) in connection with such DIRECTV System Components and shall
maintain adequate insurance to protect such DIRECTV System Components from
and
against any and all Casualties.
1.3 SECURITY
INTEREST.
Contractor hereby agrees to grant to DIRECTV a first priority security interest
(the "Security Interest") in and to each and every DIRECTV System Component
purchased, but not yet paid for, by Contractor from DIRECTV for the purposes
of
this Exhibit 3.i. during the Term of this Agreement. Promptly upon execution
of
this Amendment, Contractor shall execute and file any and all documents
requested by DIRECTV to perfect DIRECTV's Security Interest in and to such
DIRECTV System Components pursuant to the terms hereunder, including, but not
limited to, UCC-1 documents. In addition, Contractor shall not encumber or
otherwise cause any liens or security interest to be placed on such DIRECTV
System Components prior to the payment by Contractor of each specific DIRECTV
System Component.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
2. PAYMENT
OF DIRECTV SYSTEMS; REPORTING/RECONCILIATION.
2.1 INVOICING
PROCESS.
DIRECTV
shall provide an individual invoice (the “DIRECTV System Invoice”) for each
sales order shipment of DIRECTV System Components sold to Contractor. The
DIRECTV System Invoice shall be generated on the date of individual shipment.
Contractor shall have the affirmative duty to inspect each received shipment
to
verify actual count and to note any visible physical damage to the shipment.
Without the timely reporting to DIRECTV of any discrepancy as set forth below
in
Section 2.5, DIRECTV shall invoice Contractor based solely on DIRECTV’s copy of
the advanced shipment notification generated by DIRECTV’s shipping agent
applicable to such DIRECTV System Invoice.
2.2 INVOICE
DUE DATE/OFFSETTING.
The
DIRECTV System Invoice due date shall be thirty (30) days from the date of
the
applicable shipment; provided, however, that in the event that the due date
is
extended beyond thirty (30) days, that specific period shall be stated on the
applicable invoice. The Invoice shall primarily be for notification purposes
and
shall state that payment to DIRECTV is not to be effectuated by the actions
of
Contractor. Rather, on the due date as set forth on the applicable Invoice,
DIRECTV shall automatically offset the DIRECTV System Invoice balance against
any amounts owed by DIRECTV to Contractor under this or any other agreement
between the parties, including those Fulfillment, Service Call, any incentive
or
bonus, hardware reimbursement or sales commission payments (as more fully
detailed in Section 6, below) then currently due to Contractor from DIRECTV.
2.3 HARDWARE
SHIPPING SCHEDULE/COSTS.
It is
the parties’ intent to ship hardware from DIRECTV to Contractor’s plants weekly
based on DIRECTV’s rolling ninety (90) day consumption forecast specific to the
region(s) serviced by each of Contractor’s applicable DIRECTV-authorized ship-to
locations. Upon the receipt of the applicable forecasts, Contractor shall
determine the amount of hardware desired to cover the intended weekly
consumption period and shall order those amounts of hardware from DIRECTV
through DIRECTV’s purchase order (“PO”) process. Upon the receipt of such PO,
DIRECTV shall issue a corresponding sales order and shall initiate the shipment
of such sales order. Contractor may, in its reasonable discretion, request
more
or less hardware in its weekly PO than as is advised by DIRECTV based upon
DIRECTV’s rolling forecast and DIRECTV shall ship that requested amount;
provided, however, that in the event Contractor requests LESS THAN the advised
amount as communicated by DIRECTV and Contractor then requires an additional
shipment to cover the unanticipated shortfall (a “Contractor Shortfall Order”),
Contractor shall be solely responsible for all shipping costs related to that
specific Contractor Shortfall Order. Those shipping charges to Contractor shall
reflect DIRECTV’s actual shipping costs related to the specific Contractor
Shortfall Order. In addition, if Contractor requests delivery of hardware in
either less-than-full pallet quantities and/or delivery to locations requiring
a
liftgate service, DIRECTV, in its sole discretion, may elect to charge
Contractor an additional handling fee of $1.50 per unit for less-than full
pallet quantities and $30.00 per pallet requiring liftgate service. In the
event
that consumption exceeds DIRECTV’s anticipated forecast on which Contractor
based its weekly PO of hardware and an expedited shipment is required (a
“DIRECTV Shortfall Order”), DIRECTV shall be solely responsible for all shipping
costs related to that specific DIRECTV Shortfall Order. In no event shall
DIRECTV have any obligation to “buy-back” hardware ordered by Contractor as a
result of a shortfall in the anticipated the forecasted sales volume; provided,
however, that Section 7 hereunder sets forth those limited scenarios where
a
hardware buy-back by DIRECTV may be applicable.
2.4 HARDWARE
RECEIPT/RECONCILATION PROCESSES. Contractor
shall have up to fifteen (15) days from the shipping date of the applicable
sales order to report back to DIRECTV any discrepancies between its PO and
the
shipped amounts pursuant to DIRECTV’s sales order. Such discrepancies would
include missing units, visible damage and serialization inconsistencies. With
respect to potentially latent problems with hardware, including DOA receivers
and inaccurate access card information, such discrepancies shall be reported
to
DIRECTV no later than sixty
(60)
days
from the shipping date of the sales order which included the unit in question.
This reporting process shall follow the terms set forth in the Home Services
Network Policy and Procedure dated August 21, 2003 (the “P&P”).
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
2.5 PURCHASE
OF REFURBISHED RECEIVERS. Certain
makes and models of used receivers, as identified by DIRECTV, shall be eligible
to be returned to DIRECTV or its agent for refurbishment. It is the parties’
intention that Contractor shall limit its purchase of refurbished receivers
containing no access card to that number of receivers previously returned to
DIRECTV (or its agent) by Contractor for repair or refurbishment. In the event
that Contractor needs additional refurbished receivers due to events beyond
the
reasonable control of Contractor (weather, for example), DIRECTV shall work
with
Contractor to provide enough refurbished receivers to address that specific
event. All DIRECTV System Components to be consumed by Contractor on Work Orders
generated by DIRECTV, including all refurbished receivers, shall only be
purchased by Contractor from DIRECTV pursuant to the terms hereunder. In the
event that DIRECTV is unable to timely provide sufficient DIRECTV System
Components required by Contractor to timely perform pending Work Orders,
Contractor may, upon the agreement of the parties, acquire components from
other
pre-approved sources; provided, however, that any use of non DIRECTV-provided
System Components by Contractor in the fulfillment of a Work Order which has
not
been pre-approved in writing by DIRECTV shall be deemed a material breach of
the
Agreement.
3. CUSTOMER
PURCHASE OF DIRECTV SYSTEMS/TITLE TRANSFER.
DIRECTV
may from time to time deliver a Work Order to Contractor for a particular
installation, ordering the purchase of a DIRECTV System Component and
identifying the particular DIRECTV System Component, DIRECTV Customer his/her
address, how many DIRECTV System Components will be delivered to him/her, and
other pertinent information. Contractor shall acknowledge receipt of the Work
Order and shall thereupon sell to DIRECTV, and DIRECTV shall purchase, the
designated DIRECTV System(s) at the price (“Purchase Price”) and on the payment
and other terms and conditions set forth in this Exhibit
3.i.
for sale
by DIRECTV to the DIRECTV Customer. Title to and risk of loss of the DIRECTV
System Component so purchased shall pass to DIRECTV upon delivery and
installation of the System at the designated DIRECTV Customer’s location (at
which time, DIRECTV shall simultaneously transfer title of the System to the
DIRECTV Customer), in accordance herewith. DIRECTV may cancel the Work Order
without liability if Contractor fails to timely perform any of its obligations
hereunder relating thereto.
4. DIRECTV
DISCRETION.
DIRECTV
may set and change the terms of the sales program that it offers to DIRECTV
Customers in its sole discretion. DIRECTV makes no guarantee regarding the
volume of such transactions and nothing herein grants Contractor any exclusivity
regarding them; provided, however, that DIRECTV shall use its best commercially
reasonable efforts to offer to sell to Contractor, on a weekly basis, only
that
amount of DIRECTV System Components as shall be necessary to fulfill the actual
number of Work Orders provided to Contractor by DIRECTV, based on DIRECTV’s
rolling sales forecast.
5. DIRECTV
CUSTOMER TRANSACTIONS. If
the
customer transaction for a DIRECTV System Component is a sale, Contractor shall,
on DIRECTV’s behalf, deliver to the DIRECTV Customer all applicable warranty,
user, and title documents, as DIRECTV may prescribe. DIRECTV may set and change
the price and other terms of sale in its discretion, and shall bear all risk
of
collection. In no event may Contractor collect any money or payments from the
DIRECTV Customer which are to be payable to DIRECTV, unless DIRECTV otherwise
requests in writing.
6. HARDWARE
PURCHASE PRICE. In
consideration of new receiver purchases only (including any advanced receivers
such as new HD or DVR receivers) by Contractor under this Exhibit 3.i., DIRECTV
shall pay to Contractor, as reimbursement, that purchase price (the “Hardware
Reimbursement Fee”) as set forth in Exhibit 4.A.(i) to the Agreement (“Schedule
of Rates”), as amended hereunder, for the applicable completed Work Order. For
administrative purposes, the parties agree that the DIRECTV Hardware
Reimbursement Fee for any new
DIRECTV
System receiver shall be the same amount as is established in the applicable
invoice for each such new receiver sold by DIRECTV to Contractor as contemplated
herein. In addition, while the applicable per-unit Hardware Reimbursement Fee
for new receivers shall remain identical to that specific amount invoiced by
DIRECTV in the applicable DIRECTV System Invoice, throughout the Term of the
Agreement, the actual invoiced amount and corresponding, identical Reimbursement
Fee per unit may, per DIRECTV’s discretion, fluctuate during the Term upon
notice by DIRECTV to Contractor.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
The
purchase price of the DIRECTV System Components including:
(i) |
new
DIRECTV receivers;
|
(ii) |
new
DIRECTV DVR receivers;
|
(iii) |
new
high definition DIRECTV receivers;
|
(iv) |
refurbished
receivers;
|
(v) |
HD
antennae;
|
(vi) |
XXXx;
|
(vii) |
LNB;
and
|
(viii) |
Individual
remotes
|
purchased
by Contractor as contemplated herein (the “Purchase Price”) shall be set by
DIRECTV with DIRECTV providing Contractor approximately thirty (30) days notice
of any change to the then current per-item pricing. Other Components may be
added by DIRECTV throughout the term of the Agreement. In the event that a
price
change occurs for Components other than receivers and the cost of that Component
is built into the all-in fulfillment rate established (XXXx, for example),
modification to the applicable fulfillment rate shall occur twenty-one (21)
days
AFTER the modified price for such Component goes into effect.
7.
HARDWARE
BUYBACK.
Under
limited circumstances, DIRECTV, in its reasonable discretion shall, upon the
written request of Contractor, buy back certain DIRECTV System Components.
Such
buy backs, if any, shall be limited to the following situations:
7.1. OBSOLESCENCE.
In the
event that any DIRECTV System Component purchased by Contractor pursuant to
this
Exhibit 3.i. becomes immediately
obsolete
pursuant to DIRECTV’s written directive and Contractor is prohibited from
further deployment in the field, DIRECTV shall reimburse Contractor its actual
cost for each such Component that had been purchased and paid for by Contractor
that is then returned to DIRECTV (shipping to be paid for by DIRECTV). In the
event that DIRECTV provides Contractor no less than 120 days to consume all
soon
to be obsolete DIRECTV System Components as identified by DIRECTV, however,
such
DIRECTV System Components shall not be reimbursed for by DIRECTV if any such
now-obsolete Component is still on-hand after this 120 day consumption period.
Extensions to this 120-day consumption period may be granted by DIRECTV in
writing in the event that the System Component(s) in question could not have
been reasonably consumed by Contractor based on the volume of applicable Work
Orders provided by DIRECTV during the 120-day consumption period. Similarly,
in
the event of a Component recall by the Component manufacturer whereby DIRECTV
instructs Contractor to retrieve previously deployed Components (within a unique
Work Order type), DIRECTV shall replace, at no cost to Contractor, each such
recalled Component timely returned to DIRECTV per its return procedures on
a
one-for-one basis.
7.2. AGREEMENT
TERMINATION.
In the
event that this Agreement is terminated pursuant to the terms hereunder and,
as
of the effective date of termination Contractor maintains an inventory of
DIRECTV System Components purchased by Contractor pursuant to this Exhibit
3.i.,
DIRECTV shall reimburse Contractor its actual cost for each such Component
that
had been purchased and paid for by Contractor that is then returned to DIRECTV
(shipping to be paid for by DIRECTV). DIRECTV shall only reimburse Contractor
for those returned Components that are new, unopened and may still be deployed
in the field.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
8. TAXES.
8.1 PROPERTY
TAXES.
In the
event that Contractor maintains a warehouse in a state where its inventory
may
be subject to a property tax and that warehouse is also a DIRECTV-authorized
ship-to location for the purposes of this Exhibit 3.i., DIRECTV shall, upon
receipt of a copy of the applicable tax assessment specific to the DIRECTV
System Components purchased by Contractor hereunder, (i) calculate its estimated
aggregate number of each of the DIRECTV System Components that reasonably should
have been on-hand as of the date of the assessment, and (ii), in accordance
with
the established property tax on inventory rate for the applicable jurisdiction,
remit to Contractor that amount equal to DIRECTV’s reasonable calculation of its
tax responsibility, if any. As of the effective date of this Amendment, the
only
states that have a property tax on inventory which may be applicable to this
paragraph 8 a. include: ARIZONA, GEORGIA, INDIANA, KENTUCKY, MISSISSIPPI, OHIO,
OKLAHOMA, WEST VIRGINIA and possibly TENNESSEE.
8.2. SALES
AND USE TAXES.
Upon the
receipt of the properly executed resale certificate(s) from Contractor, DIRECTV
will consider the transaction a “sale-for-resale” transaction and shall not
charge Contractor sales tax on the transaction. If at a future date DIRECTV
buys
the DIRECTV System Components back from Contractor, the DIRECTV-issued resale
certificate to Contractor shall make the buy-back of such Components a “sale for
resale” resulting in no sales tax liability to Contractor on that purchase by
DIRECTV. At that point in time, DIRECTV shall self-assess the applicable tax
on
the sale and shall timely remit to the appropriate taxing authority. Said
DIRECTV-issued resale certificates shall be provided in conjunction with the
execution of this First Amendment.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
4.a.(i)
RATE
MATRIX
Fulfillment
- Labor/incidental materials
Installation
Activities
|
Fee
|
Comments
|
Standard
Professional Installation
|
[****]
|
This
includes Multi Satellite, Para Todos, Sat C, and all Advanced Products
(DVR, HD, etc.).
|
Move/Transfer
Standard Professional Installation
|
[****]
|
This
includes Multi Satellite, Para Todos, Sat C, and all Advanced Products
(DVR, etc.).
|
Multi
Sat Upgrade (INCLUDING
High Definition (“HD”) upgrades)
|
[****]
|
Rate
not including HD antenna if applicable.
|
DVR
Upgrade
|
[****]
|
|
Additional
ODU install
|
[****]
|
Same
trip at initial new installation
|
HD/DVR
Combo Upgrade
|
[****]
|
Rate
not including HD antenna if applicable.
|
Relocate
|
[****]
|
Same
trip; per component, no maximum*
|
Relocate
|
[****]
|
Separate
trip; *
|
Additional
Outlets
|
[****]
|
Same
trip, per additional outlet - no maximum
|
Additional
Outlets
|
[****]
|
Separate
trip
*
|
Receiver(s)
swap during Upgrade
|
[****]
|
On
a per-Work Order basis, not a per-receiver basis
|
Equipment
Retrieval
(either
advanced or non advanced products receivers)
|
[****]
|
Depending
on the specific initiative, receivers retrieved per equipment retrieval
Work Order either belong to DIRECTV and shall be returned to
DIRECTV/DIRECTV’s agent upon request, or shall become the property of
Contractor. If the receiver becomes the property of Contractor, unit
can
be redeployed by Contractor after bench-testing. Access Card remains
the
property of DIRECTV and shall be returned to DIRECTV at DIRECTV’s
request.
|
|
||
Sat
C kit install on Upgrade
|
[****]
|
Labor
only; hardware is shipped by DIRECTV to customer
|
High
Definition (“HD”) Antenna Installation
|
[****]
|
Includes
all hardware consumed, including antenna and
mount
|
Equipment
Reimbursement/Pricing
Equipment
|
Price
|
|
18”
ODU
|
[****]
|
|
20”
ODU
|
[****]
|
|
International
ODU
|
[****]
|
|
3x4
Multiswitch
|
[****]
|
|
4x4
Multiswitch
|
[****]
|
|
4x8
Multiswitch
|
[****]
|
|
6x8
Multiswitch
|
[****]
|
|
Standard
IRD
|
[****]
|
|
DVR
IRD
|
[****]
|
|
High
Definition IRD
|
[****]
|
Actual
reimbursement
rate of [****]
(includes additional [****]
for Contractor’s provision of necessary HD component
cable)
|
High
Definition/DVR IRD
|
[****]
|
|
Refurbished
Standard IRD
|
[****]
|
|
Dual
LNB
|
[****]
|
|
Triple
LNB
|
[****]
|
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
SAT
C Kit
|
[****]
|
|
Non-Amplified
HD Off Air Antenna
|
[****]
|
|
Amplified
HD Off Air Antenna-GS2VRD
|
[****]
|
|
Amplified
HD Off Air Anetnna-MS2VRD
|
[****]
|
|
Basic
HD Off Air Antenna Mount
|
[****]
|
|
Non-Penetrating
Roof Mount
|
[****]
|
|
HD
Off Air J Pipe Mount
|
[****]
|
|
HD
Off Air Chimney Mount
|
[****]
|
|
HD
Off Air 5’ Mast
|
[****]
|
|
HD
Amplified Off Air Antenna Power Supply
|
[****]
|
HSP/AFS
Commercial Commission Rates - ODU & Multiswitch Paid by Code -
U.S.
|
Fulfillment
- Labor/incidental materials
|
HSP/AFS/Regional
AFS Commission Rates
|
||||
|
|
|
|
Non-
|
|
|
|
|
|
Pen
|
|
|
|
|
Plenum
|
Roof
|
Blended
|
|
Labor
|
Balast
|
Cabling
|
Mount
|
Rate
|
Install/Movers
|
|
|
|
|
|
Standard
Installation
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
Advanced
Products Installation (incl. DVR, HD)
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
Additional
Outlet (same trip on Installation)
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
2nd
ODU Install (same trip)
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
|
|
|
|
|
|
Upgrades
|
|
|
|
|
|
Relocate
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
HD
Upgrade
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
DVR
Upgrade
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
Additional
Outlet Upgrade
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
Additional
Outlets, same trip
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
2nd
ODU Upgrade (international/72.5)
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
High
Definition Antenna Install
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
|
|
|
|
|
|
|
|
ODU/
|
Multi
|
|
All
In
|
|
Labor
|
LNB
|
Switch
|
IRD
|
Rate
|
|
|
|
|
|
|
Service
Call
|
[****]
|
[****]
|
[****]
|
[****]
|
[****]
|
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
Fulfillment
- Labor/Materials: [****] DMA
ONLY
|
Installation
Activities
|
Fee
|
Comments
|
||||
Standard
Professional Installation
|
[****]
|
This
includes Multi Satellite, Para Todos, Sat C, and all Advanced Products
(Tivo, Ultimate, HD, etc.).
|
||||
Move/Transfer
Standard Professional Installation
|
[****]
|
This
includes Multi Satellite, Para Todos, Sat C, and all Advanced Products
(Tivo, Ultimate, etc.).
|
||||
Multi
Sat Upgrade (INCLUDING
High Definition (“HD”) upgrades)
|
[****]
|
Rate
not including HD antenna if applicable.
|
||||
DVR
Upgrade
|
[****]
|
|||||
HD/DVR
Combo Upgrade
|
[****]
|
Rate
not including HD antenna if applicable.
|
||||
Relocate
|
[****]
|
Same
trip; per component, no maximum
|
||||
Relocate
|
[****]
|
Separate
trip
|
||||
Additional
Outlets
|
[****]
|
Same
trip, per additional outlet - no maximum
|
||||
Additional
Outlets
|
[****]
|
separate
trip
|
||||
Receiver(s)
swap during Upgrade
|
[****]
|
On
a per-Work Order basis, not a per-receiver basis
|
||||
Equipment
Retrieval
(non
advanced products receivers)
|
[****]
|
receivers
retrieved per equipment retrieval Work Order become the property
of
Contractor. Can be redeployed by Contractor after bench-testing.
Access
Card remains the property of DIRECTV and shall be returned to DIRECTV
at
DIRECTV’s request.
|
||||
Equipment
Retrieval
(advanced
products receivers)
|
[****]
|
Advanced
Products receivers retrieved per equipment retrieval Work Order remain
the
property of DIRECTV and shall be shipped by Contractor to DIRECTV’s
refurbishment agent (at DIRECTV’s cost) upon DIRECTV’s
request.
|
||||
Sat
C kit install on Upgrade
|
[****]
|
Labor
only; hardware is shipped by DIRECTV to customer
|
||||
High
Definition (“HD”) Antenna Installation
|
[****]
|
Includes
all hardware consumed, including antenna and mount
|
||||
Additional
ODU Installation
|
[****]
|
Same
trip (Upgrades/Installs/Movers). In addition to primary
ODU.
|
||||
Service
Call
|
[****]
|
Includes
all equipment and materials.
|
*
rate
includes payment for ODU
Equipment
Reimbursement/Pricing
90”
ODU
|
[****]
|
|
Sat
C Kit
|
[****]
|
|
3x4
Multiswitch
|
[****]
|
|
4x4
Multiswitch
|
[****]
|
|
4x8
Multiswitch
|
[****]
|
|
6x8
Multiswitch
|
[****]
|
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
4.a.(ii)
SERVICE
CALL PAYMENTS
DIRECTV
shall pay Contractor a tiered fee of:
[****]
within
Tier 1 DMAs
[****]
within
Tier 2 DMAs
[****]
within
Tier 3 DMAs
[****]
within
Tier 4 DMAs
[****]
within
Tier 5 DMAs
per
each
of the following types of Service Call Work Orders timely performed by
Contractor for DIRECTV customers: OC, SC, VC, WC, TC, PS, CS and other
DIRECTV-specified Service Call Work Order types, if any, within the defined
territory assigned to Contractor herein as of the end of each monthly DIRECTV
Accounting Period. Service Call fees, however, shall only be earned if and
when
the request
for
service by the customer occurs sixty (60) days or later from the last date
of
physical service performed by Contractor at that address (or sixty (60) days
or
later from the date of installation, as the case may be). Contractor shall
still
be required to complete the Service Call Work Order in a manner consistent
with
the terms and conditions hereunder if the Work Order is created less than sixty
(60) days from the last visit, but Contractor shall not be compensated for
such
Work Order when it has been opened within sixty (60) days of the last visit’s
Work Order close date; provided, however, that DIRECTV shall compensate
Contractor for [****]
of all
such Service Call Work Orders falling within this 60-day window, at the
applicable tiered rate on a per-DMA basis, to reasonably address the failure
rate of DIRECTV System Components within the 60-day window. Notwithstanding
the
foregoing, in the event that Contractor shall receive a Service Call Work Order
that requires Contractor to deploy a new DIRECTV receiver (including the SH,
HC,
WH and OH Work Order types) as opposed to the deployment of Contractor-owned
used or refurbished receivers, such Work Orders shall be compensated at a flat
rate of [****].
Should
DIRECTV expand or contract the Service Call Work Order types eligible for
compensation by DIRECTV, Contractor shall be notified of this change in writing.
Other than the exception as set forth above, any and all DIRECTV System
components consumed during the performance of a Service Call shall be provided
by Contractor at its sole cost.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
EXHIBIT
11
Marketing
of DIRECTV Products to Customers
THE
DIRECTV PROTECTION PLAN
Upon
mutual agreement of both Contractor and DIRECTV, Contractor may promote the
DIRECTV Protection Plan and educate eligible customers as to its terms and
conditions at the point of installation or upgrade of the DIRECTV System such
that the customer will be familiar with the Protection Plan in order to elect
to
purchase the Protection Plan from DIRECTV upon service activation through a
DIRECTV call center agent or, if approved by DIRECTV, through Contractor closing
the installation or upgrade work order with a unique close code representing
customer electing to purchase the Protection Plan service.
1. APPOINTMENT.
DIRECTV
hereby appoints Contractor as its representative to market and promote
subscriptions for the Protection Plan ("Subscriptions"), on the terms and
conditions contained herein. Contractor may market and promote Subscriptions
only to single family residential household customers in the contiguous United
States WHILE CONTRACTOR IS PERFORMING, PURSUANT TO THIS AGREEMENT, THE SERVICES
ON BEHALF OF DIRECTV FOR THE CUSTOMER. Contractor may market and promote
Subscriptions only for the Protection Plan as described herein, and not any
other services DIRECTV may currently offer or may offer in the future; provided,
however, that DIRECTV may, in its sole discretion, elect to expand upon the
products that Contractor may offer in which case this Exhibit 11 shall be
amended to include the terms and conditions related to any such additional
products. DIRECTV may amend the terms of the Protection Plan from time to time
on written notice to Contractor and Contractor shall be responsible for relaying
the current terms of the Protection Plan to customers. Contractor hereby accepts
such appointment and shall use its best commercial efforts to market and promote
Subscriptions. Contractor
may not sell any competing warranty product as it relates to the DBS Service
throughout the term of this Agreement.
2. GENERAL
OBLIGATIONS.
2.1 TRAINING.
DIRECTV
shall provide training and/or training materials regarding its Protection Plan
to Contractor's training personnel, as DIRECTV reasonably deems necessary.
Contractor shall train its own employees to the satisfaction of DIRECTV. DIRECTV
may require Contractor's employees to attend supplementary training classes
from
time to time. Contractor shall be responsible for all expenses and compensation
of its employees during such training.
2.2 PERSONNEL.
Contractor may allow its employees (including employees of Authorized
Subcontractors only) to market and promote the Protection Plan.
2.4 STANDARD
POLICIES. Contractor
shall strictly comply with the standard policies and procedures of the
Protection Plan as DIRECTV may promulgate for its representatives in written
notices, guidelines, and bulletins, as the same may be amended from time to
time
(collectively "Policies"). The Policies shall be an integral part of this
Agreement but may not impair any of Contractor's rights granted
herein.
2.5 STANDARD
OF CONDUCT.
In all
of its activities as a representative for DIRECTV and in its own DIRECTV System
business, Contractor shall conduct itself in a commercially reputable and
ethical manner, shall comply with all applicable laws, and shall engage in
no
deceptive sales practice or other practice which impugns DIRECTV's commercial
reputation and goodwill.
3. TRANSMISSION
OF CUSTOMER INFORMATION.
In the
event that an eligible customer, after receiving the related materials and
information, has expressed to Contractor an interest in purchasing the
Protection Plan from DIRECTV, Contractor shall (i) obtain written confirmation
of customer’s election (in a manner as shall be communicated by DIRECTV to
Contractor), and (ii) transmit to DIRECTV, via DIRECTV’s work order system
(“CSG”), or other DIRECTV-specified data transmission procedure, notification of
such customer’s interest.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
4. RATES
AND TERMS OF SERVICES.
4.1 RATES.
DIRECTV
shall determine the pricing, terms, and conditions of the Protection Plan in
its
discretion. Contractor shall not represent that DIRECTV Protection Plan may
be
obtained on any different terms or rates, shall not impose additional or
different terms and shall not offer customers any discount, rebate, or other
material benefits in consideration for subscribing to it, except as expressly
authorized by DIRECTV in writing.
4.2 CHANGES.
DIRECTV
may change the pricing, terms, conditions, and availability of its Protection
Plan from time to time in its discretion. DIRECTV shall notify Contractor of
such changes as soon as practicable. Contractor shall promptly replace point
of
sale materials as necessary.
4.3 MISREPRESENTATIONS.
If
Contractor misrepresents or fails to fully disclose any prices or other terms
of
the DIRECTV Protection Plan to any customer, it shall reimburse DIRECTV any
amount which DIRECTV is compelled, or in its reasonable judgment according
to
its standard practices decides, to pay or credit the customer in compensation
for such misrepresentation. In addition, DIRECTV shall be entitled to offset
any
such payment or credit by DIRECTV to customers as a result of Contractor’s
misrepresentations or omissions against any amounts owed to Contractor by
DIRECTV.
5. CUSTOMER ORDERS
FOR SERVICE. Upon
receipt of confirmation, via CSG or other DIRECTV-specified data transmission
procedure, that a specific customer has expressed interest in purchasing the
Protection Plan, DIRECTV shall use its commercially reasonable efforts to
finalize the sale of the Protection Plan to customer through agent activation
or
customer literature post activation. All
elections by customers to order the Protection Plan shall be subject to
acceptance or rejection by DIRECTV in its discretion and Contractor understands
and agrees that a customer may ultimately elect not to purchase the Protection
Plan even if such customer had previously expressed to Contractor an interest
in
purchasing the Protection Plan.
All
Subscription fees shall be billed directly to the Subscriber by DIRECTV.
6. COMPENSATION.
6.1 PROTECTION
PLAN COMMISSIONS.
In
consideration of Contractor's services in marketing and promoting the customer’s
purchase of the DIRECTV Protection Plan, DIRECTV shall pay Contractor
commissions ("Protection Plan Commissions") in the amounts and on the terms
and
conditions set forth below, upon both of the following events (collectively
a
"Protection Plan Activation"):
(a) DIRECTV's
receipt of an Order for the Protection Plan from an eligible customer (i.e.,
an
existing customer not yet subscribing to the Protection Plan or a new customer
who has not yet indicated, pursuant to the pending services set forth within
the
applicable Work Order, that he/she has elected to subscribe to the Protection
Plan at service activation) where such Order is evidenced by the customer
acknowledging such in writing on the DIRECTV Installation/Service Satisfaction
Checklist; and
(b) DIRECTV's
acceptance of such Order of the Protection Plan.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
6.2 COMMISSION
RATE.
(a) DIRECTV
shall pay Contractor a Protection Plan Commission, for its services in promoting
Orders for the DIRECTV Protection Plan, on the terms and conditions in the
Agreement and as described below, in the amount of [****]
per
Subscriber activated by DIRECTV agent or DIRECTV work order system (on that
date
which is also the Programming Service Activation Date) as a DIRECTV Protection
Plan Activation during the applicable accounting month. Such calculation shall
be made by DIRECTV on approximately the 1st
day of
the calendar month following the month in which Activation occurs. Contractor
shall also be penalized a charge back fee of [****]
for each
DIRECTV customer that subsequently disconnects Protection Plan service up to
60
days from the customer’s original Service Activation Date. Again, eligibility
shall be measured as of the last day of the billing cycle for the applicable
Subscriber. This schedule is subject to change by DIRECTV in accordance with
this Exhibit.
(b) DIRECTV's
obligation to penalize Contractor with charge back shall commence upon the
earliest to occur of any of the following events, as they relate to each
applicable Subscription:
(i) the
termination of the Subscription for any reason (including termination resulting
in a change in customer account type to an account type ineligible to purchase
the Protection Plan) in the first sixty (60) days of service; or
(ii) the
disconnection of the Subscription for any reason; unless a reconnection by
Subscriber occurs within the first sixty (60) days of service; or
(iii) the
termination of the Subscription for any reason in the first sixty (60) days
of
service; or
(iv) the
cancellation by the Subscriber of its commissionable DIRECTV Programming
Package, notwithstanding such customer maintaining its Protection Plan
Subscription after said Programming Package cancellation in the first sixty
(60)
days of service.
(c) An
accounting setting forth Contractor’s monthly Protection Plan Subscriber Base
shall be included with Contractor’s monthly commissions report it receives as a
commissioned DIRECTV Contractor.
(d)
No
Protection Plan Commissions shall be earned if a customer elects to purchase
the
Protection Plan on any date subsequent to that calendar date which is the
customer’s DIRECTV Programming Service Activation Date or the date on which the
Service Call at which the Protection Plan was promoted by the
technician.
6.3 EXCEPTIONS.
(a) Notwithstanding
anything to the contrary herein, DIRECTV shall not be required to pay any
Protection Plan Commissions for:
(i) any
Subscription canceled prior to the commencement of service;
(ii) any
Subscription that may inadvertently attach to (or change to) a customer account
type not
eligible
as a commissionable account type as set forth in this Exhibit;
(iii) Orders
made by a Subscriber subsequent to the offer made by DIRECTV to customer upon
Activation;
(b) DIRECTV
shall not be required to pay any Protection Plan Commissions on account of
payments received by DIRECTV from Subscribers after the termination of this
Agreement or termination of this Protection Plan marketing program.
6.4 CHANGES.
Contractor acknowledges that DIRECTV may need to adapt its marketing cost
structure to changing conditions from time to time. Accordingly, DIRECTV may
change the Commission Schedule (including the Commission rate) at any time,
and
from time to time, in its discretion; provided that DIRECTV shall give
Contractor at least thirty (30) days prior written notice of the effective
date
of any such change.
6.5 SET-OFFS
BY DIRECTV.
DIRECTV
may set-off or recoup any amounts owed to it by Contractor, or by its
subsidiaries and affiliates, pursuant to this or any other agreement with
DIRECTV, and any damages suffered by DIRECTV due to Contractor's breach hereof
or other misconduct, against any amounts which it owes to Contractor. The
foregoing does not limit DIRECTV's right to recover any unrecouped
balance.
7.
TERMINATION.
Either
party may elect to terminate this promotion and marketing of the Protection
Plan
by Contractor for any or no cause upon ten (10) business days written notice
to
the other party.
****
Certain confidential information contained in this document has been
omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
ATTACHMENT
A
YEAR
2005 PERFORMANCE-BASED INCENTIVE PAYMENTS
(Effective,
retroactively, as of April 1, 2005)
A. PERFORMANCE-BASED
INCENTIVE PAYMENTS
In
addition to the applicable Rate(s) set forth in Exhibit 4.a.(i), Contractor,
during calendar year 2005 (the “Program Period”), shall be eligible to receive
up to three (3) separately calculated additional payments (the “Incentive
Payment”) based on DIRECTV’s calculation of Contractor’s (i) compliance (per
DMA) with the Installation/Mover Incentive Metrics as are set forth below,
(ii)
overall compliance with Installation/Mover Incentive Metrics across Contractor’s
entire territory, and (iii) pass rate of customer satisfaction results (Tracker
Study blended score) as set forth below. The calculation with respect to any
Incentive Payment earned by Contractor shall be performed by DIRECTV either
on a
monthly or quarterly basis, using the data collected in the prior month or
quarter, as the case may be; provided, however, that payment of any such
aggregate monthly Incentive Payment shall be made by DIRECTV to Contractor
approximately sixty (60) days from the last day of the applicable month or
quarter.
I. INSTALLATION/MOVER
INCENTIVE METRICS - PROVIDED THAT
Contractor is not in breach of any material obligation under the Agreement,
including the Performance Standards set forth in 3.e. (v) and meets or exceeds
each of the following Installation/Mover Incentive Metrics, other than where
excepted (“IE,” “IN” and/or others as specifically identified by DIRECTV in
writing), on a per DMA basis:
1. Installation
Work Orders (not including Movers) performed in each [****]
measuring period shall be “closed” within an average of [****]
from the
creation of the applicable Work Order. For the purposes of this Exhibit,
“closed” shall mean that the specific job related to Work Order has received
final
resolution within the Work Order management system. This maximum [****]
average
takes into account a built-in “pad” of an average of [****]
whereby
DIRECTV presumes that Contractor would not be in a position to commence any
work
prior to the [****]
subsequent to the date of work order creation.
2 Contractor
shall close equal to or greater than [****]
of all
Installation Work Orders opened during the reporting period as measured 30
days
after the close of the period.
3. No
Work
Orders (within the applicable DMA) have been reassigned during the measuring
period by DIRECTV due to Contractor’s inability to manage the provided volume of
work within the performance standards as set forth herein; provided, however,
that uncontrollable weather/force majeure events or out of the ordinary DIRECTV
initiatives within the DMA shall be reasonably excluded by DIRECTV.
4. Contractor
shall achieve a monthly blended customer satisfaction score as
measured across Contractor’s entire territory,
based
on customer interviews conducted by a third party, of no less than [****].
THEN,
Contractor shall be entitled to a monthly Incentive Payment calculated as
follows:
[****]
multiplied solely by the number of such applicable installation/mover Work
Orders successfully completed by Contractor (that is, Work Order has been
qualified for payment by DIRECTV) during that [****] in
the applicable DMA.
No Work
Orders in dispute at the time of such [****]
calculation shall be included in the applicable [****]
Incentive Payment, if any.
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].
II. HSP
LEVEL INSTALLATION/MOVER INCENTIVE - PROVIDED THAT
Contractor meets or exceeds each of the above four Installation/Mover Incentive
Metrics in every
DMA that
Contractor has been assigned applicable Installation/Mover work
orders:
THEN,
Contractor shall be entitled to a [****]
Incentive Payment calculated as follows:
[****]
multiplied solely by the aggregate number of such Installation/Mover work orders
successfully completed by Contractor during that [****].
No work
orders in dispute at the time of such [****]
calculation shall be included in the applicable [****]
Incentive Payment, if any.
III. [****]
CUSTOMER SATISFACTION INCENTIVE - PROVIDED THAT
Contractor receives a score of [****]
or above
in Customer Interviews conducted each [****]
throughout Contractor’s territory regarding Contractor-provided services during
the applicable [****],
THEN,
Contractor shall be entitled to a [****]
Incentive Payment calculated as follows:
[****]
multiplied solely by the aggregate number of Installation, Mover, Upgrade,
and
Service work orders successfully completed by Contractor during that
[****]
throughout Contractor’s territory. No work orders in dispute at the time of such
[****]
calculation shall be included in this applicable [****]
Incentive Payment, if any.
DIRECTV
may, in its sole discretion, elect to extend the Program beyond the Program
Period, or may offer a different incentive program; provided, however, that
DIRECTV is under no obligation to offer any additional incentive-based
compensation beyond the Program Period.
*
The Customer Satisfaction score
shall be
determined by an overall, basic rating by the DIRECTV customer as to the outcome
of the services (specifically, Installation, Mover, Upgrade, and Service Calls)
provided by Contractor (specifically, a rating by the customer of being “not
satisfied,” “somewhat satisfied” or “very satisfied” with the performance of
Contractor as it relates to the Services required by the applicable Work Order
assigned by DIRECTV to Contractor). A passing customer satisfaction score for
the Incentive shall equate to no
less than [****]
out of
every [****]
customers’ acknowledgment of being either “somewhat satisfied” or “very
satisfied” with Contractor’s performance. Telephone interviews of each such
customer shall be conducted by DIRECTV or DIRECTV’s authorized agent.
DIRECTV
will use reasonable efforts to pay any Performance-based Incentive Payment
[****], within approximately [****] from the last day of the applicable [****]
(other than the payment, if any, related to the [****] Customer satisfaction
score achieved by Contractor).
****
Certain confidential information contained in this document has
been omitted and
filed separately with the Securities and Exchange Commission pursuant
to Rule
24b-2 of the Securities Exchange Act of 1934, as amended. Omissions
are
designated as [****].