EXHIBIT 10.1
COST SHARING AGREEMENT
The Cost Sharing Agreement (the Agreement) is between PEMCO MUTUAL INSURANCE
COMPANY ("PMIC") a corporation with its principal office at 000 Xxxxxxxx Xxx X,
Xxxxxxx, XX 00000, and EVERGREENBANK ("the Company"), a corporation with its
principal xxxxxx xx 000Xxxxxxxx Xxx X, Xxxxxxx, XX 00000, and is effective as of
JANUARY 1, 2005.
1. PURPOSE
The Agreement is designed to recover direct and department costs incurred
by PMIC on behalf of the Company. PMIC has been identified as the provider
of corporate shared services for those services currently performed by
PMIC. Unless restricted by regulation, PMIC will directly pay the
employees providing the shared services.
The Agreement does not create profit for PMIC, but is, instead, a
cooperative model designed to equitably recover costs.
2. TERM AND TERMINATION
The Agreement shall take effect as of the date first written above and
shall remain in force for an initial term of one year. Thereafter, upon
each anniversary this Agreement shall automatically renew for successive
one-year terms until terminated as provided herein.
Termination at Will. Either party may terminate the Agreement, or any
service hereunder, for any or no reason by providing the other party no
less than six months advance written notice. Both parties shall make good
faith reasonable efforts to facilitate an orderly and mutually
satisfactory cessation of the affected service(s).
Termination by Mutual Agreement. The Agreement or any service hereunder
may be terminated at any time with the express consent of both parties.
Termination for Cause. Either party may terminate the Agreement upon
notice to the other in the event the non-terminating party: 1) materially
breaches its obligations under this Agreement (including, without limiting
the foregoing, all obligations of payment) and such breach continues
uncured for a period of 90 days following written notice of such breach by
the non-breaching party; or 2) becomes the subject of bankruptcy,
assignment for the benefit of creditors, or similar proceedings or
otherwise ceases to do business as a going concern.
3. SERVICES OF PMIC TO THE COMPANY
PMIC will initially provide these specific services to the Company:
Human Resources
Marketing
Training and Resource Center
PMIC - EvergreenBank Cost Sharing Agreement - Page 1
Security
Mail Services
Print Management
Forms Management
Reception
Document Management
Copy Services
Motor Pool
Desktop Publishing
Design Services
Writing Services
Word Processing
Business Analysts
Internal Audit or Consulting
Purchasing
Corporate Legal
Real Estate
Telecom
In addition to these services, PMIC may provide other services as
requested by the Company and appended to the Agreement in writing signed
by both parties. Specific service descriptions, services to be provided
during the current term, and applicable cost allocations and their bases
will be set forth in Attachment A hereto and incorporated herein by
reference.
PMIC reserves the right to discontinue any service, if they discontinue
providing that service generally, with 30 days notice.
4. ALLOCATION OF COSTS
Each PMIC department that provides shared services (Cost Centers) has
determined the direct and department costs incurred by the Cost Centers to
provide services to the Company. Direct and department costs represent
those costs incurred by PMIC for services extended to the Company.
Cost recovery is based on the following methods:
- Department allocation
- Percentage of usage
- Fee based
- Flat fee
Certain Cost Centers have been able to determine the standard cost of
providing a specific service to the Company and, as such, have provided a
usage fee for these services. However, where standard cost models are
impractical to develop, a standard cost allocation methodology has been
developed.
PMIC - EvergreenBank Cost Sharing Agreement - Page 2
Costs for the following shared services shall initially be allocated as
indicated:
- Human Resources - relative number of employees of the Company
- Marketing - relative time spent on the company
- Training and education - by class
- Security - physical security based on PFS Square Footage subject to
Surveillance ( properties occupied by, or remotely viewed by, PMIC
Security); other security based on relative number of employees of
the Company
- Mail Services - based on actual monthly time studies
- Print Management - based on actual monthly time studies
- Forms Management - based on actual monthly time studies
- Reception - based on actual monthly time studies
- Document Management - based on actual monthly time studies
- Copy Services - per hour or per unit basis
- Motor Pool - per hour or per unit basis
- Desktop Publishing - per hour or per unit basis
- Design Services - per hour or per unit basis
- Writing Services - per hour or per unit basis
- Word Processing - per hour or per unit basis
- Business Analysts - per hour or per unit basis
- Internal Audit or Consulting - per hour basis
- Purchasing - per purchase order basis
- Corporate Legal - based on time studies
- Real Estate - per hour basis
- Telecom - based on actual usage
Any other services provided by PMIC to the Company shall be allocated in
accordance with customary insurance accounting practices or generally
accepted accounting principles.
Costs that are directly incurred by the Company (Direct Charges) and paid
by PMIC are not included in the cost allocation. Instead, these costs are
billed directly to the Company for reimbursement.
All matters relating to cost and payment under this Agreement will be
reviewed annually and adjusted as necessary in accordance with the
principles set forth herein.
5. EXPENSES PAID BY EACH COMPANY
Expenses billed directly to either company or directly allocated to each
company shall be paid directly by that company out of its own funds to the
extent this is practical. Any expenses or portion thereof paid directly by
one company that are properly allocable to the other company shall be paid
to the company that pays the expense within thirty (30) days of billing.
6. SETTLEMENT OF INTERCOMPANY BALANCES
PMIC - EvergreenBank Cost Sharing Agreement - Page 3
Expenses allocable to the Company, and Direct Charges, shall be invoiced
to the Company one month in arrears. Invoices are due when received.
7. BOOKS AND RECORDS
The books and records of each company, as they pertain to this agreement,
shall be maintained in accordance with the uniform accounting instructions
of the National Association of Insurance Commissioners or generally
accepted accounting principles and shall be available for audit and review
by the other company and by the insurance commissioner of the state of
Washington.
8. PROPRIETARY RIGHTS
The Company retains exclusive rights of ownership to all work products
produced solely and exclusively for the Company by PMIC under this
Agreement. PMIC retains exclusive rights to ownership of all other work
products produced hereunder, except to the extent that such rights are
owned by third parties. "Work product" shall include all documents,
presentation materials, files, input materials, output materials, the
media upon which they are located, and all software programs or packages
(together with any related documentation, source codes, object codes,
upgrades, revisions, modifications, and any other related materials) which
are utilized or developed in the performance of the services contracted
for under the Agreement.
9. CONFIDENTIALITY
Each party shall hold in trust and confidence all of the other party's
Confidential Information to which it is exposed based on activities
related to the Agreement, and shall not disclose such information to third
parties except as may be authorized by the owning party. "Confidential
Information" means all information not in the public domain that belongs
to or is the responsibility of each party, including but not limited to
information about the party's business affairs, software and hardware
systems and related documentation, existing or future research and
development, work products, customers and employees, and the entities with
whom the party conducts business. The provisions in this Section shall
survive the termination of this Agreement.
10. INDEMNITY
It is the intention of the parties that PMIC is an independent contractor
under this Agreement. All employees of PMIC who provide services hereunder
shall remain employees of PMIC and not employees of the Company,
regardless of whether their salaries are considered in determining the
amount charged to the Company for their services. Notwithstanding the
foregoing, in the event a governmental agency determines that social
security, withholding, or other tax or assessment should have been paid by
the Company on behalf of PMIC, then PMIC agrees to indemnify and hold
harmless the
PMIC - EvergreenBank Cost Sharing Agreement - Page 4
EXHIBIT 10.1
Company against any such loss, including interest and penalties occasioned
by such determination.
The Company agrees to defend, indemnify, and hold harmless PMIC against
any and all loss, liability, cost or expense (including without limitation
reasonable attorneys' fees) arising from or related in any way whatsoever
to the services provided hereunder, except to the extent solely caused by
PMIC's gross negligence or willful misconduct.
11. GENERAL
A. Applicable Law. This Agreement shall be governed by and interpreted
under the laws of the State of Washington.
B. Severability. Any invalidity, in whole or in part, of any provision
of this Agreement shall not affect the validity of any other of its
provisions.
C. Notices. Any notice or other communication hereunder shall be in
writing.
D. Waiver. No term or provision hereof shall be deemed waived or breach
excused unless such waiver is in writing and signed by the party
claimed to have waived or consented.
E. Assignment. Neither party may assign, sell, transfer, or subcontract
any of its rights or obligations under this Agreement without the
other party's prior written consent.
F. Modification. This Agreement may not be modified except by written
agreement of both parties.
12. ENTIRE AGREEMENT
This Agreement, including Addendum A and any other attachments hereto and
as may be modified from time to time as provided herein, constitutes the
entire agreement between PMIC and the Company regarding the services and
costs and other subject matter referred to herein, and as of the effective
date hereof terminates, replaces, and supersedes all prior agreements and
other communications between the parties with respect to this subject
matter, regardless of whether in written, oral, or any other form.
PEMCO MUTUAL INSURANCE COMPANY EVERGREENBANK
By: /s/ Xxxxxx X. Xxxxx By: /s/ Xxxxxx X. Xxxxxx
------------------- --------------------
Name: Xxxxxx X. Xxxxx Name: Xxxxxx X. Xxxxxx
Title: Vice President & CFO Title: President & CEO
Date: 1/19/2005 Date: 12.30.2004
PMIC - EvergreenBank Cost Sharing Agreement - Page 5
ADDENDUM A - SERVICES AND COST ALLOCATIONS
TO THE COST SHARING AGREEMENT
BETWEEN PEMCO MUTUAL INSURANCE COMPANY
AND EVERGREENBANK
DATED DECEMBER 30, 2004
PERIOD COVERED: JANUARY 1 THROUGH DECEMBER 31, 2005
Confidential - Internal Use Only
1
HUMAN RESOURCES
DESCRIPTION OF SERVICES:
SPECIALTY FUNCTIONS/ADMINISTRATION
- Contracts with, and manages, 3rd party vendors (15+)
- Administers employee services such as lunchroom, payroll deduction
for commuter and parking programs, community service projects,
service and attendance awards
- Helps administer HR policies and handbook
EEO, LEGAL, COMPLIANCE
- Provides regulatory reporting to 12+ agencies
- Handles unemployment and workers' compensation claims/issues
- Ensures legal compliance on EEO, safety, benefit plans, and other
employment issues
- Trains supervisors and managers in employment and compliance issues
COMPENSATION (PAYROLL AND BENEFITS)
- Administers benefit programs such as medical/dental, 401(k), life,
long-term disability, and other programs such as tuition/education
reimbursement programs and deferred compensation plans; manages
COBRA process
- Recommends benefits strategy to PFS Executive Committee annually
prior to open enrollment
- Conducts annual open enrollment process, processes monthly benefits
enrollment and benefits billing
- Coordinates benefits coverage, paid and unpaid leave, and return to
work issues with employees on leaves of absences
- Negotiates benefits contracts with vendors
- Administers wage and pay programs, compiles and analyzes pay and
benefits data
- Prepares personalized total compensation statement, every other year
- Manages paid time off programs
- Processes payroll data on biweekly payment schedule
- Manages transportation subsidies and commuter program
- Documentation/Records:
- prepares monthly wage and tax data for general ledger
- documents expense reporting
- creates ad hoc reports for earned time and sick time balances,
overtime and bonuses
- time recording for attendance records
- processes taxable fringes
EMPLOYMENT (RECRUITING AND STAFFING)
- Creates ads for open positions
- Conducts initial screening interviews, administers applicant
testing, develops legal and effective interviewing techniques
- Checks and accesses references, credit and criminal backgrounds
- Manages PFS employee transfers
- Conducts exit interviews
- Recruits temporary services, manages contracted employees
- Trains supervisors and managers in interviewing
- Reports
- Reviews position responsibilities for accurate FLSA classification
Confidential - Internal Use Only
2
HUMAN RESOURCES (CONTINUED)
- Reviews employees' statuses (regular full-time, regular part-time,
temporary) for accurate classification
- Assists Security with employee safety issues
TRAINING
- Conducts first day, 2 hour orientation and 90 day, 1 1/2 hour
benefits orientation
- Facilitates PDP training; assists facilitation of Legacy Leadership,
supervisory training, Aljoya sessions
- Trains managers to administer policies and procedures
ALLOCATION METHODOLOGY:
The allocation model for HR recovery is:
Annual HR expense as benchmarked / PMIC HR staff = cost per HR Staff
(Total Company headcount/100) x HR headcount benchmark = Company HR
Staff
Company HR Staff x Cost per HR Staff = Company annual HR expense
Company annual HR expense/12 = monthly expense reimbursement
(rounded)
Adjusted FTE is defined as follows:
HR expense as benchmarked = Xxxx benchmark for A.M. Best A+
insurance companies
HR headcount benchmark = BNA survey data at the third quartile
NOTES:
- Headcount is based on November data.
- Expense reimbursement will be billed monthly and is subject to
change only with the occurrence of material event.
- Company direct vendor payments are not included. ---
Confidential - Internal Use Only
3
MARKETING
DESCRIPTION OF SERVICES:
- Marketing Strategy Development
- Consumer Research
- Product Research
- Competitive Intelligence
- Media Planning
- Advertising, Creative Direction
- MCIF Administration and reporting
- Sales Promotion Planning
- Direct Marketing Administration
- MarCom Management (PR, Media Relations)
- CorCom Management (Internal PFS Communication)
- Community Relations
- Product Management
- Marketing Project Coordination and Management
- Brand Strategy and Development
- Business Alliance Partnerships (i.e.: Lead Development)
- Marketing Consulting
ALLOCATION METHODOLOGY:
Marketing services will be charged by multiplying the actual hours of use by
$100.
NOTES:
- Company direct vendor payments are not included. ---
Confidential - Internal Use Only
4
TRAINING AND RESOURCE CENTER (TARC)
DESCRIPTION OF SERVICES:
TARC costs are broken into charges associated with setting up classes
(attendance records, supplies, etc.), and a standard cost rate for specified
classes and activities.
ALLOCATION METHODOLOGY:
Since TARC will be primarily focused on PMIC training for 2005, there is no
annual flat-fee administrative charge to the Company.
The following services and classes will be reimbursed as follows:
CUSTOMIZED SERVICES:
- Curriculum Development $125 per hour
- Consulting $100 per hour
- Research $96 per hour
- Coaching/Mentoring $96 per hour
- Facilitating $150 per hour
CLASSES:
- The Supervisory Series $1,250 per person
- New Employee Training
- Required Day One $100 per person
- Voluntary Day Two $100 per person
NOTES:
- Company direct vendor payments are not included. ---
Confidential - Internal Use Only
5
SECURITY
DESCRIPTION OF SERVICES:
PHYSICAL SECURITY
a) PEMCO-OWNED/MANAGED/OCCUPIED/REMOTELY-VIEWED COMPANIES
- Provide and manage Security Guard Force
- Provide and manage CCTV Surveillance
- Access Controls & Alarm Systems
- Emergency Radio & Cell Phone Communication
b) NON-PEMCO-OWNED/MANAGED/OCCUPIED/REMOTELY-VIEWED COMPANIES
- Access cards
- Other special projects (i.e. SAS 70, CISP support)
c) THIRTY PERCENT (30%) OF THE GUARDSMARK BILLING GOES TO "BUILDING." THE
REMAINING 70% OF THE BILLING WILL BE SPLIT AS FOLLOWS:
- PCCS will be charged for 10% of the current Guardsmark split because
of increased Security Department time needed to monitor the PCCS
Computer Room.
- The remaining 60% of charges will be allocated based on
occupied/remotely-viewed square footage.
ALL OTHER SECURITY, INCLUDING SAFETY PROGRAM
a) PFS SECURITY OTHER
- Emergency PA Communications
- Investigations
- Workplace Violence Prevention Program
- Liaison with Law Enforcement Authorities
- Investigative Criminal Background Checks
- Emergency Response to Security-related threats to persons or
property at PFS company sites
- Protection of persons and property at PFS company sites
- Provide Security Awareness and Education Programs
b) PFS SAFETY PROGRAM
- Provide First Aid kits, AED's, sickroom and related supplies
- Insure MSDS and Hazardous Materials and Blood Borne pathogen
regulatory compliance
- Provide emergency First Aid response, CPR, earthquake preparedness,
Bomb Search, and evacuation support
- Provide First Aid, AED, and related training to appropriate staff
- Establish and maintain Safety Committee structure and regulatory
compliance
- Provide Emergency Food, Water for extended emergencies
- Provide Search and Rescue equipment and handling in the event of
regional disaster impacts to facility
- Conduct routine safety sweeps and evaluations for proactive accident
prevention
- Conduct Accident Investigations to determine cause and remedy
Confidential - Internal Use Only
6
SECURITY (CONTINUED)
- Provide Safety Awareness and Education programs
ALLOCATION METHODOLOGY:
Physical Security - The allocation model for Physical Security recovery depends
on whether or not a property is PEMCO-owned/managed or occupied/remotely-viewed
by PMIC Security.
a) PEMCO-owned/managed/occupied/remotely-viewed companies
- CU, PCCS (also please see note "c" below for PCCS), Seattle and
Lynnwood Bank
(Allocable Costs/Square Footage subject to surveillance) x Company Square
Footage
where
Allocable Costs = Physical Security costs less direct reimbursements
PFS Square Footage subject to Surveillance = properties occupied by, or
remotely viewed by PMIC Security
b) Non-PEMCO-owned/managed/occupied/remotely-viewed companies - PTSI, Federal
Way and Bellevue Bank
- $15 per access card (14-day turnaround)
- $25 per access card (1-day turnaround)
- $27 per hour for SAS 70 support, CISP, or other special projects
c) Thirty percent (30%) of the Guardsmark billing goes to "building." The
remaining 70% of the billing will be split as follows:
- PCCS will be charged for 10% for the current Guardsmark split
because of increased Security Department time needed to monitor the
PCCS Computer Room.
- The remaining 60% of charges will be from an allocation based on
occupied/remotely-viewed square footage.
All Other Security - The allocation model for All Other Security cost recovery
is:
(Allocable Costs/PFS-Adjusted FTE) x Company-Adjusted FTE
where
Adjusted FTE includes all employees and sales agents for the
Insurance Company
NOTES:
- Company direct vendor payments are not included.
- The above allocations do not include actual contingencies. The cost of an
actual contingency will be charged separately based on actual expenses
incurred.
Confidential - Internal Use Only
7
SECURITY (CONTINUED)
- Starting January 2005, the Bank will not be charged for Contingency
Security (part of All Other Security). They will take full responsibility
for their own business contingency planning and testing, and they will not
maintain a seat on the EOC Planning Team(s).
- Starting January 2005, the Insurance Company's network will be separated
from the other networks in the Alliance, consequently we will no longer be
using the Insurance Company's single network. Therefore, costs for
Information Security will no longer be recovered by the Insurance Company.
Confidential - Internal Use Only
8
SHARED SERVICES DEPARTMENT
DESCRIPTION OF SERVICES:
Mail Services- - - - - - - - Handling of all incoming and outgoing mail,
receiving and delivery of packages, center
messenger service, and miscellaneous projects
such as processing of agent mail, visa reports,
proof of mail, and bank statements.
Print Management - - - - - - Management of outsourced print services and
leased copy machines
Forms Management - - - - - - Inventory and version management of standard
forms
Reception- - - - - - - - - - General lobby reception services and ad hoc
clerical assistance
Document Management- - - - - Filming, storage and retrieval, management of
archival records, ordering of
third party data and records, ad hoc proofreading
/ editing and document services assistance
ALLOCATION METHODOLOGY: Actual monthly expenses for Mail Services, Print
Management, Forms Management, Reception, and Document Management will be
allocated based on actual monthly time studies.
NOTES:
- Company direct vendor payments and direct postage are not included.
- After IPS is implemented in March, Mail Services will no longer process
the Bank's statements.
COPY SERVICES
PRICING MODEL
File copying $0.30 per sheet
Full color copying $0.99 per sheet
(more than 2 colors excluding black on a page, 8 1/2 x 11)
Full color copying $1.50 per sheet
(more than 2 colors excluding black on a page, 11 x 17)
Accent color copying $0.25 per sheet
(one color plus black on a page,
8 1/2 x 11 or 8 1/2 x 14, 1- or 2-sided)
B&W copying (8 1/2 x 11, 8 1/2 x 14, 1- or 2-sided) $0.07 per sheet
B & W copying (11 x 17, 1- or 2-sided) $0.12 per sheet
Sales training manuals $60.00 per manual
(Includes copy, tabs, and bindery costs. Does not include binder.)
Bindery time $60.00 per hour
Folding $15.00 per set up
Plotter printing $2.00 per page
Confidential - Internal Use Only
9
SHARED SERVICES (CONTINUED)
NOTES:
- Proposed rates are 100 percent of market price.
MOTOR POOL $5.00 per hour
DESKTOP PUBLISHING $54.00 per hour
DESIGN SERVICES $62.00 per hour
WRITING SERVICES $58.00 per hour
WORD PROCESSING $42.00 per hour
BUSINESS ANALYSTS $68.00 per hour
Confidential - Internal Use Only
10
FINANCE
DESCRIPTION OF PURCHASING SERVICES:
- Fleet handling w/Shared Services
- Purchase Order processing
- Vendor Management
- Requests for Proposal
- Requests for Information
- Vendor Research
- Cell phone handling
ALLOCATION METHODOLOGY: A fee of $10 will be charged per purchase order
Confidential - Internal Use Only
11
CORPORATE LEGAL
DESCRIPTION OF SERVICES:
IN GENERAL. Deliver an array of in-house legal services to Company, including:
ADVICE AND COUNSEL
- Provide legal assistance to upper management regarding day-to-day
business operations
- Assist Company in developing situational strategic options;
- Support the board(s) of directors of the Company (and subsidiaries)
COMPLIANCE
- Maintain ongoing rapport with regulators
- Provide legal assistance during regulatory examinations and external
audits
- Assist in complaint responses to regulators
- Provide legal assistance on privacy policies and information
security programs
- Provide research, clarify laws, regulations, and information as
requested
CONTRACTS
- Provide targeted support (including coordination with Internal
Audit/Contracts Department) on contract reviews
CORPORATE FILINGS
- Holding company filings (bank and insurance companies)
- On-going regulatory compliance activities
- State filings, including reports, forms, notices and requests
INTELLECTUAL PROPERTY
- Register copyright and trademark filings, or coordinate the same
with outside counsel
CORPORATE GOVERNANCE
- Retrieval of and amendments to bylaws and charter documents
- Legal assistance for meetings of directors, shareholders, and
management
- Support corporate policy development and implementation
- Contact with regulators and law enforcement
LITIGATION
- Provide advice and supervision of outside law firms on pending or
threatened litigation (excluding claims litigation for insurance
companies)
LOBBYISTS AND TRADE ASSOCIATIONS
- Review pending legislation and changes to legislation
- Support PFS lobbyist activities
PARTICULAR SERVICES AS DESIGNATED
- Specific additional services as may be determined by the Company and
Legal Department, including:
Confidential - Internal Use Only
12
CORPORATE LEGAL (CONTINUED)
- Corporate Legal provides non-claim-related legal support to
all the Companies, advising management on the meaning of
statutes, regulations, court opinions, and administrative
rulings. The department's responsibilities include advising
management and PFS directors on corporate governance and
preparation or review of corporate policies, forms,
agreements, and contracts.
- The department maintains the articles of incorporation,
bylaws, corporate minute books, and associated records of all
the major PEMCO Companies, and supports the government affairs
activities of all the Companies.
ALLOCATION METHODOLOGY:
The Corporate Legal pricing model is based on time estimates. However, this
model excludes the costs associated with the processing of stock splits or stock
dividends for Evergreen Bancorp. Additionally, this model does not consider any
major unplanned project such as an acquisition and, as such, may require
adjustment in the event of a major project. Therefore, the calculation for cost
recovery per company would be:
Allocable Costs x estimate of hour allocations
The Company will be billed 9.9% of the current estimate of hour allocations.
NOTES:
- Company direct vendor payments are not included.
Confidential - Internal Use Only
13
REAL ESTATE
DESCRIPTION OF SERVICES:
HOUSEKEEPING ($60/hour)
- Special Tenant requested cleaning
- Conference room Set-up
- Emergency cleaning
FACILITY SERVICES ($60/hour)
- Work Order requests
- Damage repair
- Equipment installations
- Equipment repair
- Special services (i.e. lock change, custom lighting, security
support, etc.)
PROFESSIONAL SERVICES ($70/hour)
- Space programming
- space desing
- leasing and property consultation
- project management
NOTES:
- Services will be billed through the rental agreement.
Confidential - Internal Use Only
14
TELECOM
DESCRIPTION OF SERVICES:
COORDINATION AND MANAGEMENT OF VOICE DIAL TONE SERVICE
- New, deleted or changed voice lines
- Provision of voice mail services
- Long distance related to remote access lines
- Remote user access services related to voice telecom
BUSINESS MANAGEMENT OF VOICE TELECOM SERVICE
- Invoice processing and control of vendor provided telecom services
- Invoice processing and control of PMIC/Affiliate voice telecom
xxxxxxxx
- Administering equipment and all other contractual obligations
regarding voice telecom
- Administer implemented Policies and Procedures
COORDINATION OF TECHNICAL VOICE TELECOM SERVICES
- Coordinate voice telecom services outlined in the PEMCO Corp Service
Level Agreement
- Coordination and approval of all equipment maintenance, upgrading,
and installation regarding voice telecom
ALLOCATION METHODOLOGY:
The Telecom pricing model is based on the following billing rates:
HOME OFFICE REMOTE OFFICE
----------- -------------
Long distance $0.06/minute $0.06/minute
Nortel desk phone $29/unit $49/unit
Rockwell $22/unit $13/unit
Line $12/line $44/line
New phone MAC $150/MAC $150/MAC
Move phone MAC $100/MAC $100/MAC
Software MAC $25/MAC $25 MAC
Charges are guaranteed through the first quarter of 2005; beginning with the
second quarter, they are subject to change with 30 days notice.
Confidential - Internal Use Only
15
