- ------------------------------------------------------------------------------ 1997 CALL-OFF CONTRACT between National Bank of Alaska (NBA) and General Communication, Inc. (GCI) - ------------------------------------------------------------------------------ THIS CONTRACT is made the 1st day of November 1996. BETWEEN NATIONAL BANK OF ALASKA whose registered offices are located at 301 West Northern Lights Blvd., Anchorage, Alaska 99503 (hereafter, "NBA") and GENERAL COMMUNICATION, INC. (GCI) whose registered offices are located at 2550 Denali St., Suite 1000, Anchorage, Alaska 99503 (hereafter "the Contractor") WHEREAS By a Framework Agreement dated 9 November 1995 entered into between NBA and the Contractor, terms were agreed to whereby the Contractor or an Associated Company of the Contractor would provide or ensure the provision of telecommunication services to be available to NBA and other NBA Associated Companies in substitution for the telecommunication services which were immediately prior to the execution of this Contract either provided from within NBA or acquired from Third Party contractors, NBA now wishes the Contractor to provide the Services and the Contractor is able to provide the Services on the terms set out below in this Contract. IT IS THEREFORE AGREED as follows: 1. DEFINITIONS 1.1 A glossary of Definitions which shall apply to the terms used in this Contract appears as Annex A to the Framework Agreement and shall be deemed to be incorporated in this Contract. 1.2 In the event of conflict between this Contract and the Framework Agreement, the order of precedence shall be this Contract and the Framework Agreement. 1.3 For the avoidance of any doubt, Services will include all telecommunications and related services described in Schedule 1. 2. STATUS 2.1 This Contract may only be modified if such modification is in writing and signed by a duly authorized representative of each Party. 2.2 The following documents shall together form part of and shall be read with this Contract and shall represent the entire understanding between the Parties in relation GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -2- 04/14/97 to the subject matter hereof and supersede all previous agreements and representations made by either Party, whether oral or written. 1. The Framework Agreement 2. The Schedules: Schedule 1 1997 Scope of Work Schedule 2 1997 Service Levels Schedule 3 1997 Expected Cost of Operation (CoOF) and Target Schedule 4 Charges and Billing Information Schedule 5 NBA and Contractor Premises Schedule 6 Agency Letter Schedule 7 Confidentiality Letter Schedule 8 Long Term Contracts Schedule 9 1997 Labor Rates Schedule 10 Additional Terms & Conditions Schedule 11 Out-of-Scope Projects 3. PROVISION OF SERVICES The Contractor shall perform the Services in accordance with this Contract. 4. DURATION The Services shall commence at 0001 hours on 1 January 1997 (Commencement Date) and shall continue until 2400 on 31 December 1997, unless extended by mutual agreement or subject to earlier termination. 5. INVOICES AND PAYMENT 5.1 In consideration of the provision of the Services NBA shall pay to the Contractor the Charges as provided for in Schedule 4. General Communication, Inc. (GCI) Accounts Payable Department 2550 Denali Street Suite 900 Anchorage, Alaska 99503 GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -3- 04/14/97 Tel: 907-265-5600 Fax: 907-265-5695 Contact: Richard A. Whitney Director, Business Development 5.2 The Contractor shall render invoices to NBA at the intervals and in the manner specified in Section 21 of the Framework Agreement. 6. MANAGEMENT ORGANIZATION 6.1 The NBA Partner Relations Manager shall be Anna Rice, Senior Vice President, (907) 267-5354. 6.2 The Contractor Representative shall be Richard A. Whitney, Director, Business Development, (907) 265-5340. 7. NO WAIVER 7.1 Failure by either Party to exercise or enforce any right conferred by the Contract shall not be deemed to be a waiver of any such right nor operate so as to bar the exercise or enforcement thereof or of any other right on any other occasion. 8. SERVICE OF NOTICE 8.1 Any notice or other document which may be given by either Party under the Contract shall be deemed to have been duly given if left at or sent by pre-paid recorded delivery post or facsimile transmission (confirmed by letter sent by pre-paid recorded delivery post) to each Party's principal or registered office as set out below as an address to which notices, invoices and other documents may be sent: NBA: National Bank of Alaska (NBA) P.O. Box 100600 Anchorage, Alaska 99510-0600 Tel: 907-267-5354 Fax: 907-267-5391 Contact: Anna Rice Senior Vice President Contractor: General Communication, Inc. (GCI) 2550 Denali St. GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -4- 04/14/97 Suite 1000 Anchorage, Alaska 99503 Tel: 907-265-5600 Fax: 907-265-5695 Contact: Richard A. Whitney, Director, Business Development 8.2 Any such communication shall be deemed to have been made to the other Party four days (4) from the date of posting (if by letter) and if by facsimile transmission on the day of such transmission provided the original of the communication is received by the other Party within 4 days of the date of transmission. 9. FURTHER ASSURANCES The Contractor and NBA shall use all reasonable endeavors respectively to ensure that any Third Party necessary for the performance of the Services shall do, execute and perform all such further deeds, documents, assurances, acts and things as either of the Parties hereto may reasonably require by notice in writing to any other party to carry the provision of the Contract into full force and effect. 10. GOVERNING LAW This Contract shall, to the extent that any aspect or matter fails to be interpreted, conformed or adjudicated upon the parties themselves, be dealt with in accordance with the laws of the United States and the State of Alaska. Any controversy or claim arising out of or relating to this Agreement, or breach thereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, such arbitration to take place in Anchorage, Alaska and judgment upon the award rendered by the Arbitrator(s) may be entered in any Court having jurisdiction thereof. 11. INVALIDITY If any term or provision in the Contract shall in whole or in part be held to any extent to be illegal or unenforceable under any enactment or rule of law, that term or provision or part shall to that extent be deemed not to form part of the Contract and the enforceability of the remainder of the Contract shall not be affected. GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -5- 04/14/97 12. ADDITIONAL TERMS AND CONDITIONS Additional terms and conditions to the Framework Agreement terms and to this Contract (if any) will be attached to this Contract as a separate Schedule. IN WITNESS WHEREOF the Parties hereto have by duly authorized representatives set their hands the day and year first above written. for and on behalf of ) NATIONAL BANK OF ALASKA (NBA) ) for and on behalf of ) GENERAL COMMUNICATION, INC. (GCI) ) GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -6- 04/14/97 SCHEDULE 1: 1997 SCOPE OF WORK 1997 SCOPE OF WORK 1.0 INTRODUCTION 1.1 GENERAL GCI will provide the services described in this Scope of Work document at all NBA premises shown in Schedule 5. 1.2 ASSUMPTIONS - All on-site work performed will be handled as trouble requests, work requests or projects- centralized network management and other network services will be delivered pro-actively and will not be documented as one of the above; - Work requests or projects that are required which are estimated to require 80 or more hours of effort will be treated as out-of-scope- for example, a work request to move all staff from one floor of a building to another floor or to install personal banker printers in all branch locations would be considered out-of-scope projects, 2.0 SCOPE OF WORK 2.1 OPERATION AND MANAGEMENT (O&M) 2.1.1 PROCUREMENT, SET-UP & INSTALLATION - Coordinate establishment of desktop computer configuration standards with the NBA Help Desk; - Provide centralized Setup facility for all desktop and server hardware; logistics support for shipment of computer hardware to sites; - Perform or coordinate physical installation of computer hardware on LANs; - Maintain relationships with key vendors and service providers to assure product and service support and continued knowledge of installed equipment, systems and services. 2.1.2 NETWORK MANAGEMENT - Monitor network devices and associated cable plant/circuits, provide status/performance reports as required; GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -7- 04/14/97 - Provide proactive management of network devices to maintain established service levels; - Provide configuration management of desktop and service hardware; manage/maintain operating system integrity; - Initiate and coordinate change management for the following (1) desktop/server hardware and operating systems, (2) hubs and other LAN equipment/circuits; (3) routers, multiplexers, modems and other WAN equipment; (4) WAN private line circuits; (5) PBX and Key systems as applicable; (6) long distance services; (7) video conferencing systems and services. 2.1.3 TROUBLE REQUESTS - Provide necessary resolution/support for desktop hardware, operating system and network connectivity problems; - Provide necessary resolution/support for server hardware, operating system and network connectivity problems; - Respond to and resolve user telephone station equipment and voicemail/feature service problems; - Provide resolution of long distance calling or other service problems; - Provide necessary resolution/support for PBX hardware and service problems; 2.1.4 WORK REQUESTS - Move, add, change (MAC) of all telephone station equipment; - Move, add, change (MAC) voicemail/features; - Move, add, change (MAC) of all desktop computer equipment that is LAN connected; - Move, add, change (MAC) business telephone lines; - Desktop computer hardware installations not capable of being performed by users; 2.1.5 PROJECTS - Coordinate and perform telephone systems, LAN/WAN systems projects involving moving facilities/workgroups or service upgrades of an operational basis not categorized as Major Changes; GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -8- 04/14/97 2.1.6 TRANSPORT SERVICES - Provide or coordinate all long distance direct-dial, 800-service and other switched voice services; - Provide or coordinate all circuit switched data services for data or video service; - Provide or coordinate all private line, frame relay or other packet-switched long distance transport services; - Provide or coordinate all local circuit switched voice, data, and video services; - Provide or coordinate all wireless services; 2.2 CHANGE MANAGEMENT 2.2.1 TACTICAL MANAGEMENT - Implement outage notification procedures in order to insure coordination between NBA, M&I and all other service providers involving all planned maintenance activity; - Coordinate asset management systems, processes and procedures with NBA to provide complete inventory control of all telecommunications, server and desktop equipment, systems, circuits and software assets; - Develop and maintain documentation for all equipment, system, circuit, network or software configuration, maintenance history, layout, revision level and status; 2.2.2 STRATEGIC PLANNING - Maintain technical expertise on all currently installed and in-use equipment, systems, circuits, services and advances in technology; - Present telecommunications and desktop support plans, designs, options and technical summaries to NBA for review; - Provide technical consultancy in order to strategically meet all future telecommunications and desktop computing business requirements; - Continuously monitor and evaluate telecommunications technologies relevant to NBA's business requirements; advise NBA on adoption of new technologies; - Create and maintain a shared planning process with M&I and integrate the results of this planning process into NBA's strategic telecommunications plan. GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -9- 04/14/97 SCHEDULE 2: 1997 SCOPE OF WORK GENERAL COMMUNICATION, INC. (GCI) FINAL 1997 CALL-OFF CONTRACT -10- 04/14/97 I. PROBLEM/WORKFLOW MANAGEMENT - ----------------------------------------------------------------------------------------------------------- Task/Activity Immediate(1) Immediate(2) 1 Hour 4 Hour 24 Hour NBD Negotiated Logging Response Response Response Response Response Scheduling - ----------------------------------------------------------------------------------------------------------- A. TROUBLE REQUESTS - Desktop hardware 0800-1800 M-F X X(3) After hours X X - LAN Server 0800-1800 M-F X X After hours X X(3) - Communications Hardware 0800-1800 M-F X X After hours X X - Communications Circuits 0800-1800 M-F X X After hours X X - CBX/PBX system 0800-1800 M-F X X After hours X X
- -------------------- (1) Within five minutes of contact by customer (2) Within five minutes of logging a request (trouble request or work request only) (3) May vary by location - ----------------------------------------------------------------------------------------------------------- Task/Activity Immediate(1) Immediate(2) 1 Hour 4 Hour 24 Hour NBD Negotiated Logging Response Response Response Response Response Scheduling - ----------------------------------------------------------------------------------------------------------- - Key System 0800-1800 M-F X X After hours X X(3) - Phone station equipment 0800-1800 M-F X X After hours X X(3) - ATMs 0800-1800 M-F X X After hours X X - ----------------------------------------------------------------------------------------------------------- B. WORK REQUESTS - Phone station equipment MAC 0800-1800 M-F After hours X X Large requests X X - Voicemail/features X X 0800-1800 M-F After hours X X Large requests X X - Desktop computer/printer X MAC 0800-1800 M-F After hours X X Large requests X X
- ----------------------------------------------------------------------------------------------------------- Task/Activity Immediate(1) Immediate(2) 1 Hour 4 Hour 24 Hour NBD Negotiated Logging Response Response Response Response Response Scheduling - ----------------------------------------------------------------------------------------------------------- - Business Telephone lines X X 0800-1800 M-F After hours X X Large requests X X X X - ----------------------------------------------------------------------------------------------------------- C. PROJECTS - All projects 0800-1800 M-F X X After hours X X Large requests X X - -----------------------------------------------------------------------------------------------------------
II. NETWORK SERVICES - ----------------------------------------------------------------------------------------------------------- NETWORK SERVICE SERVICE LEVEL - ----------------------------------------------------------------------------------------------------------- On-line Uptime (0600-2000 AST; seven days per week) 98% availability or greater ATM/EFT availability (only circuit and data communications 98% availability (monthly) equipment) Response Time (In-town) 2 seconds or less Response Time (Out-of-town) 4 seconds or less Backbone Service Availability 99.8% or greater POS Service Availability 98.5% or greater - -----------------------------------------------------------------------------------------------------------
III. NETWORK SERVICE PERFORMANCE CALCULATION for: On-line Uptime - UP ATM/EFT Availability - ATM/EFT Monthly Performance - MP Annual Performance - AP # WAN Circuits - Circuits Ap(up) = ((525,600 * Circuits) - Outage minutes) DIVIDED BY (525,600 * Circuits) MP(ATM/EFT) = ((#Min. in Month) - Outage Minutes) DIVIDED BY (Min. in Month) *100% IV. REPORTING RESPONSIBILITY GCI will provide a monthly Service Level report on the above Service Levels in a consistent, agreed-upon format to the designated NBA contact within 15 days following month-end. A presentation of Service Level performance will be presented to NBA periodically at an Information Services Steering Committee meeting. SCHEDULE 3: 1997 EXPECTED COST OF OPERATIONS (CoO(E)) AND TARGET 1997 TARGET CALCULATION(4) 1997 TARGET EXPLANATION ----------- ----------- 1996 ACTUAL COSTS(5) $4,995,000 Establishes the baseline for 1997 Target calculation CHANGES IN SCOPE - - Transition Services ($50,000) One time cost in 1996 not repeated - - ATM Maintenance(5) ($285,000) Shift responsibility to NBA CHANGES IN VOLUME - - New Office $15,000 Lemon Creek branch annualized cost increase - - Network Management $20,000 Annualized support and includes addition of up to 50 desktop devices - - Long Distance $93,750 Adjustment is based on 16.5% minute growth; if actual growth is less than 15% or greater than 18%, an adjustment to this number (and the target) will be made using the number of minutes above/below the percentages $0 multiplied by the current in- - - Dial Tone $45,000 state long distance rate - - Backbone Service NBA will channel all new requests for tele-communications service for analysis and approval by GCI CHANGES IN SERVICE $0 No changes in Service Levels approved by LEVELS NBA Changes in Other
1997 TARGET EXPLANATION ----------- ----------- AREAS - - Increase in Direct $10,000 Assume $500,000 in Direct Costs in 1997 Cost Margin(5) - - All LEC invoices to ($10,000) be routed through GCI TOTAL $4,833,750
- -------------------- (4) The target for 1997 Call-Off Contract will be established by considering previous year's actual costs, including GCI margin but excluding any Risk/Reward incentives or penalties, plus/minus adjustments for Scope or volume changes and other mutually agreed to initiatives (5) Year-end actuals will replace these costs SCHEDULE 4: CHARGES AND BILLING INFORMATION INVOICE SPECIMEN Month of ____________ INVOICE SUMMARY Current YTD Direct Costs Field Services Labor Benefits Parts/Supplies Expenses: Meals/Travel O/S Managed Services Labor Benefits Parts/Supplies Expenses: Meals/Travel Margin Sub-contractor Costs Company Margin Network Services Network Management Long Distance 800 Service Administrative Wireless Base Telephone TDM Services Private Line Backbone Services SCHEDULE 5: NBA AND CONTRACTOR PREMISES ANCHORAGE Dimond Dimond Mall 745 E. Dimond Boulevard 800 E. Dimond Boulevard Anchorage, AK 99515 Suite 116 Manager: Sara Kipp Anchorage, AK 99515 (907) 267-5525 Manager: Pam Sievers (907) 267-5565 FAX (907) 267-5505 (907) 267-5383 FAX Fifth Avenue 510 L St. Ste. 102 630 E. Fifth Avenue Anchorage, AK 99501 Anchorage, AK 99501 Supervisor: Tami Florez Manager: Judy Ferguson (907) 263-2565 (907) 263-2501 (907) 263-2521 FAX (907) 263-2514 FAX Fourth Avenue Frontier 446 W. Fourth Avenue 7731 E. Northern Lights Boulevard Anchorage, AK 99501 Anchorage, AK 99504 Manager: Matt Fitzgerald Supervisor: Judy Butchart (907) 265-2734 (907) 265-2060 (907) 265-2039 FAX (907) 265-2067 FAX Huffman Main Office 1351 E. Huffman Road 301 W. Northern Lights Boulevard Anchorage, AK 99515 Anchorage, AK 99503 Manager: Mary Webb Manager: Dan Keyes (907) 267-5301 (907) 265-2809 (907) 267-5546 FAX (907) 265-2043 FAX Minnesota-Benson Northway Mall 1500 West Benson Boulevard 3101 Penland Parkway Anchorage, AK 99515 Anchorage, AK 99508 Manager: Jenny McClure Manager: Karin Johnson (907) 257-3200 (907) 263-2590 (907) 257-3218 FAX (907) 263-2546 FAX Russian Jack Sand Lake 5700 DeBarr Road 6961 Jewel Lake Road Anchorage, AK 99504 Anchorage, AK 99502 Manager: Nancy Gillies Manager: Launi Lee (907) 263-2574 (907) 267-5420 (907) 263-2531 FAX (907) 267-5426 FAX Sears Mall Spenard 600 E. Northern Lights Boulevard 2709 Spenard Road Anchorage, AK 99503 Anchorage, AK 99509 Manager: Kathy Hagedorn Manager: Amy Penrose (907) 263-2533 (907) 263-2541 (907) 263-2539 FAX (907) 265-2023 FAX FAIRBANKS Bentley College 34 College Road 794 University Avenue Fairbanks, AK 99701 Fairbanks, AK 99707 Manager: Jami Spears Manager: Vicki Kennebec (907) 459-4363 (907) 474-4133 (907) 459-4366 FAX (907) 474-4130 FAX Cushman Gaffney 613 Cushman Road 620 Gaffney Road Fairbanks, AK 99701 Fairbanks, AK 99706 Manager: Debbie Kimmell Manager: Robin Ridington (907) 459-4318 (907) 459-4373 (907) 459-4346 FAX (907) 459-4344 FAX North Pole 381 Santa Claus Lane South North Pole, AK 99705 Manager: Oscar Calvillo (907) 488-7507 (907) 488-5678 FAX OTHER BRANCHES Barrow Bethel 1078 Kiogak Street Bethel Native Corporation Building Barrow, AK 99723 460 Ridgecrest Manager: Joe Everhart Bethel, AK 99559 (907) 852-6200 Manager: Heath Cox (907) 852-3426 FAX (907) 543-3875 (907) 543-2125 FAX Cordova Cottonwood Creek Mall 515 Main Street 1701 Parks Highway Cordova, AK 99574 Wasilla, AK 99654 Manager: Jon Stavig Manager: Michelle Rodekohr (907) 424-3258 (907) 376-6797 (907) 424-5758 FAX (907) 373-0252 FAX Delta Dillingham Mile 166, Richardson Highway 512 Seward Street Delta Junction, AK 99737 Dillingham, AK 99576 Manager: Dave Durham Manager: Julie Woodworth (907) 895-4691 (907) 842-5284 (907) 895-1927 FAX (907) 842-2450 FAX Eagle River Glacier Valley 16600 Centerfield Drive 9150 Glacier Highway Eagle River, AK 99577 Juneau, AK 99801 Manager: Mark Underwood Manager: Deborah Zenger (967) 694-3129 (907) 789-9550 (907) 694-1435 FAX (907) 789-4220 FAX Glennallen Homer Mile 187.5 Glenn Highway 203 W. Pioneer Avenue Glennallen, AK 99588 Homer, AK 99603 Manager: Ken Olmstead Manager: John Hoyt (907) 822-3214 (907) 235-8151 (907) 822-3288 FAX (907) 235-6181 FAX Juneau Kenai 123 Seward Street 11216 Kenai Spur Highway Juneau, AK 99801 Kenai, AK 99611 Manager: Roy Kyle Manager: Ron Linegar (907) 586-3324 (907) 283-7581 (907) 463-3997 FAX (907) 283-4082 FAX Ketchikan King Salmon 306 Main Street #1 King Salmon Mall Ketchikan, AK 99901 Alaska Peninsula Highway Manager: John Scoblic King Salmon, AK 99613 (907) 225-2184 Manager: Charles Munk (907) 225-1022 FAX (907) 246-3306 (907) 246-3027 FAX Kodiak Kotzebue 202 Marine Way Lagoon Street and Second Kodiak, AK 99615 Kotzebue, AK 99752 Manager: Jim Brenner Manager: Alex Navarro (907) 486-3126 (907) 442-3257 (907) 486-5879 FAX (907) 442-2157 FAX Lake Street Branch Metlakatla 401 4 Lake Street, Ste. 100 Milton Street Homer, AK 99603-7682 Metlakatla, AK 99926 Supervisor: Mary Covey Manager: Charlene Brendible (907) 235-2444 (907) 886-6363 (907) 235-5272 FAX (907) 886-5063 FAX Lemon Creek Branch Nome 1610 Anka Street 250 E. Front Street Juneau, AK 99801 Nome, AK 99762 Manager: Natasha Von Imhof Manager: Mitch Erickson (907) 780-5299 (907) 443-2223 (907) 780-6227 (907) 443-2742 FAX Mill Bay Branch Petersburg 2645 Mill Bay Road 201 N. Nordic Drive Kodiak, AK 99615 Petersburg, AK 99833 Manager: Josie Barber Manager: Bond Stewart (907) 486-6900 (907) 772-3833 (907) 486-2586 FAX (907) 772-4881 FAX Seattle Palmer One Union Square 705 South Bailey 600 University Street, #3420 Palmer, AK 99645 Seattle, WA 98101 Manager: Taka Tsukada Manager: Fred Richard (907) 745-2161 (206) 621-9464 (907) 745-6059 FAX (206) 622-9488 FAX Prince of Wales 1330 Craig Klawock Highway Shoreline Craig, AK 99921 4966 N. Tongass Highway Manager: Sean Riggon Ketchikan, AK 99901 (907) 826-3040 Manager: Pierre Kaptanian (907) 826-3044 FAX (907) 247-7878 (907) 225-6868 FAX Seward Skagway 908 Third Avenue 6th & Broadway Seward, AK 99664 Skagway, AK 99840 Manager: Lori Draper Manager: Kelly Roper (907) 224-5283 (907) 983-2265 (907) 224-3711 FAX (907) 983-2128 FAX Sitka Tongass 300 Lincoln Street 2415 Tongass Avenue Sitka, AK 99835 Ketchikan, AK 99901 Manager: Greg West Manager: Lori Freeman-Konoske (907) 747-3226 (907) 225-4141 (907) 747-8081 FAX (907) 225-0218 FAX Soldotna Wasilla 44552 Sterling Highway 581 W. Parks Highway Soldotna, AK 99669 Wasilla, AK 99654 Manager: Kurt Eriksson Manager: Annette Olejniczal (907) 262-4435 (907) 376-5355 (907) 262-5114 FAX (907) 376-0298 Valdez Wrangell 337 Egan Drive 115 Front Street Valdez, AK 99686 Wrangell, AK 99929 Manager: Jacquelyn Robb Manager: Tom Saville (907) 835-4745 (907) 874-3341 (907) 835-5762 FAX (907) 874-3294 FAX OTHER LOCATIONS Southeast Mortgage Northland Credit (3174) 9211 Lee Smith Drive 3030 Denali Street Juneau, AK 99803 Anchorage, AK 99503 Manager: Karen King Manager: John Higgins (907) 789-7071 (907) 562-0266 (907) 789-7552 FAX (907) 562-2150 FAX Northland Credit (3174) Northland Credit (Dial-in Email) 201 Old Steese Highway, Suite 1 1700 E. Parks Highway, Suite 100 Fairbanks, AK 99701 Wasilla, AK 99654 Manager: Jim Carter Manager: Larry Timmons (907) 456-5263 (907) 376-7600 (907) 456-3677 FAX (907) 376-7557 FAX Northland Credit (Dial-in Email) Northland Mortgage (Dial-in Email) 2092 Jordan Avenue, Suite 5 2605 Denali Street Juneau, AK 99801 Anchorage, AK 99503 Manager: Manager: Don Shepherd (907) 789-9493 (907) 274-5150 (907) 789-3155 FAX (907) 277-4081 FAX Northland Mortgage (Dial-in Email) Northland Mortgage (Dial-in Email) 16331 Heritage Place, #100 522 Third Street Eagle River, AK 99577 Fairbanks, AK 99701 Manager: Trish Kastner Manager: Liz Rhow (907) 694-7872 (907) 452-5007 (907) 694-7292 FAX (907) 452-6005 FAX Northland Mortgage (Dial-in Email) 701 S. Bailey, Suite 200 Northland Mortgage (Dial-in Email) Palmer, AK 99645 951 E. Bogard Road, Suite 101 Manager: Annie Davenport Wasilla, AK 99701 (907) 746-7821 Manager: Lynn Berry (907) 746-7825 FAX (907) 376-2308 (907) 376-0206 FAX Kenai Peninsula Mortgage Loans 35551 Kenai Spur Highway Soldotna, AK 99669-7625 Manager: Darby Hobson (907) 262-3940 (907) 262-4087 SCHEDULE 6: AGENCY LETTER 1 November 1996 Richard A. Whitney Director, Business Development General Communication, Inc. (GCI) 2550 Denali St., Suite 1000 Anchorage, Alaska 99503 SUBJECT: TELECOMMUNICATIONS LETTER OF AGENCY Dear Richard: National Bank of Alaska (NBA) hereby appoints GCl as its agent for the limited purpose of ordering, implementing and maintaining telecommunications services provided by any contractor, local exchange carrier, interexchange carrier, or enhanced/alternate service provider as may be necessary for GCI to manage/provide telecommunications services to NBA. This agency relationship shall remain in effect until modified or revoked by NBA in writing. When GCI acts as agent, GCI is responsible, on behalf of NBA, for all such charges, including without limitation monthly charges, usage charges, installation charges, or applicable termination charges of the providers of telecommunications facilities, whether these charges are arranged to be billed directly to NBA or to GCI. Neither NBA nor GCI shall be precluded by this appointment from dealing with carriers or providers in arranging for telecommunications services or connections to other equipment separate from those associated with this agreement. Sincerely, Gary Dalton Executive Vice President/CFO National Bank of Alaska P.O. Box 100600 Anchorage, Alaska 99510-0600 GD: SCHEDULE 7: CONFIDENTIALITY LETTER 1 November 1996 Gary Dalton Executive Vice President/CFO National Bank of Alaska P.O. Box 100600 Anchorage, Alaska 99510-0600 SUBJECT: CONFIDENTIALITY OF INFORMATION Dear Gary: During the past year and throughout all of our contract negotiations, we have discussed many aspects of the business and operations of our companies. Certain information disclosed is confidential and has consistently been considered and treated by each of us as trade secrets. I refer particularly to information regarding customers, pricing policies, contract structure/methodology, certain telecommunications service equipment, product/service/network development and general business practices associated with our outsourcing business. This information was disclosed for use solely in connection with developing and operating a strategic business relationship between our companies consistent with our Framework Agreement. I am writing to confirm the understanding which we reached and documented in our Framework Agreement that all involved employees and agents of both companies will not disclose, use for their own benefit, or otherwise appropriate such trade secrets or confidential information, except internally to the extent necessary to conduct our joint business. If I have correctly expressed our understandings, please sign and date this letter. General Communication, Inc. National Bank of Alaska -------------------------------------- Richard A. Whitney, Director Gary Dalton Business Development Executive Vice President/CFO Dated: Dated: ------------------------------ -------------------------------- SCHEDULE 8: LONG TERM CONTRACTS - -------------------------------------------------------------------------------- CONTRACT CONTRACT CONTRACT TERM OR OWNER START DATE DEPRECIATION DESCRIPTION AMOUNT - -------- ---------- ------------ --------------------- ------ - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- GCI 1/1/96 5 years Newbridge Multiplexer $179,645 Equipment - -------------------------------------------------------------------------------- SCHEDULE 9: 1997 LABOR RATES 1. STANDARD LABOR & BENEFIT RATES 1.1 DEFINITION. Standardization of labor and benefit rates has been agreed in order to simplify invoicing and open book audit processes for the duration of this Call-Off Contract. Five position categories have been identified Administrative, Technician, Analyst, Engineer and Manager. All labor billable to NBA as Direct Costs will be provided by a GCl employee associated with one of the above categories. Each position category will have unique labor and benefit rates. 1.2 METHODOLOGY. Labor rates were established based via an analysis of all labor provided during a 10 month period ending October, 1996. Each employee providing service to NBA during this period was placed into one of the five identified position categories. Actual hourly labor rates for each employee within a category was determined and the average hourly rate calculated as the position category labor rate. The numbers below reflect these rates plus an increase of 1.5% for mid-year wage increases. A benefit analysis was conducted to determine allocations of GCI's allowable benefits. The position category labor rate was subsequently considered in order to arrive at a unique benefit rate for each position category. Table 11.1 shows approved labor and benefit rates for 1997. --------------------------------------------------------------- POSITION CATEGORY LABOR RATE BENEFIT RATE --------------------------------------------------------------- Administrative $13.55 32% --------------------------------------------------------------- Technician $17.20 28% --------------------------------------------------------------- Analyst $27.30 22% --------------------------------------------------------------- --------------------------------------------------------------- Engineer $29.95 21% --------------------------------------------------------------- Manager $45.40 16% --------------------------------------------------------------- SCHEDULE 10: ADDITIONAL TERMS & CONDITIONS Pursuant to discussions between NBA and GCI during development of the 1997 Call- Off Contract, agreement to amend Section 40, "Remedies" of the approved Framework Agreement was reached. This section is amended as follows: 40.2 Should the Contractor fail to meet stated Service Levels either through failure to resolve a catastrophic Service outage within 48 hours or through failure to resolve chronic and business impacting Service problems within 60 days, NBA may at its discretion instruct the Contractor to bring in re-allocated NBA personnel or agreed-upon external resources in order to resolve the outage or chronic problem. Following resolution of the outage or chronic problem, NBA and the Contractor will convene a post-project review to establish actual cause of the outage or problem, revise necessary process, and recommend changes. Should the outage or problem be judged to be due to a Contractor deficiency, the Contractor will bear the costs associated with the re-allocated NBA personnel or agreed-upon external resources in accordance with the terms of this Section. Should the outage or problem be judged to be due to some other deficiency, NBA will bear the costs associated with the re-allocated NBA personnel or agreed-upon external resources. SCHEDULE 11: OUT-OF-SCOPE PROJECTS - ----------------------------------------------------------------------------------------------------------- PROJECT TITLE ESTIMATED COST ESTIMATED START EXPLANATION ------------- -------------- --------------- ------------ - ----------------------------------------------------------------------------------------------------------- Re-locate Homer branch $ 8,500 97Q2 This is a change, not a new addition - ----------------------------------------------------------------------------------------------------------- Re-location of ATM's $15,000 97Q1 These are re-locations, not additions; significant re-location which impacts wide area transport will increase cost estimates - ----------------------------------------------------------------------------------------------------------- Token Ring implementa- $26,000 96Q4 - 97Q1 Implementation of Token Ring switches tion - ----------------------------------------------------------------------------------------------------------- Home Banking study $ 5,000 - ----------------------------------------------------------------------------------------------------------- Disaster Recovery $50,000 97Q2 Include Anchorage operational area only - -----------------------------------------------------------------------------------------------------------
OUT-OF-SCOPE PROJECT METHODOLOGY 1. The estimated costs shown in the above table are not committed costs. 2. Upon request for initiation by NBA, a business case/project plan will be assembled, presented and approved by NBA prior to beginning any actual work. 3. All project invoices will be tracked and managed throughout the life of any project. Reporting of project financial standing will be available upon demand. 4. Commercial terms for projects will be determined on a project-by- project basis. Options for terms include but are not limited to: a) cost plus, b) not-to-exceed, and c) fixed price with Risk/Reward incentives. 5. Additional projects may be requested by NBA during 1997.