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Addendum #1 - 03/22/16

Addendum #1 to the Contract Between the Oklahoma Department of Corrections (DOC) and Value-Added Communications, Inc.

It is agreed between the parties hereto that the Agreement that was entered into effective September 08, 2011, between the Oklahoma Department of Corrections ("DOC" or "Premises Provider") and Value-Added Communications, Inc. ("VAC"), a wholly owned subsidiary of/ Global Tel*Link Corporation ("GTL"), under DOC Solicitation 1310003272 resulting in DOC purchase order #1319049372, is hereby modified as described below.

In order to implement requirements related to inmate calling services that have been mandated by the Federal Communication Commission's ("FCC") in its "Second Report and dand Third Further Notice of Proposed Rulemaking," in WC Dock No. 12-375 on November 5, 2015 ("FCC Order"), as modified by the Partial Stay Order issued by the United States Court of Appeals for the District of Columbia Circuit in Global Tel*Link v. Federal Communications Commission et al. Case No. 15-1461 (March 7, 2016), and the FCC's subsequent Public Notice, Wireline Competition Bureau Addresses Applicable Rates for Inmate Calling Services and Effective Dates for Provisions of the Inmate Calling Services Second Report and Order, DA 16-280, WC Docket No. 12-375 (Mar. 16, 2016), the following provisions will amend the Agreement and take effect as of March 17, 2016:

  • Calling rates will convert to a per minute charge for interstate and intrastate calls at a rate of $0.20/minute, regardless of whether a call is made using a collect, debit, prepaid/AdvancePay format.
  • An option for Advance Pay One Call and Collect2Phone will be added with a fee of $1.19 plus $0.20 per minute of use per use.
  • The rates charged are exclusive of taxes, and other amounts collected by Company on behalf of, or paid to, third parties, including but not limited to payments in support of statutory or regulatory programs mandated by governmental or quasi-governmental authorities, such as the Federal Universal Service Fee, and any costs incurred by Company in connection with such programs.
  • No per call, per connection, or flat-rate calling charges shall apply to interstate and intrastate inmate telephone service ("ITS") per minute of use calls.
  • Company may charge certain transaction fees in accordance with the following amounts:
Fee for automated payment for credit card, debit card, and bill processing fees
$3.00 per use
Fee for payment using live operator
$4.75 per use
Fee for paper bill/statement
$2.00 per use
Fee for use of third-party money transmitter (e.g., MoneyGram, Western Union, credit card processing, transfers from third-party commissary accounts)
The exact fee from the third-party provider passed through directly to customer with no markup.

VAC agrees to make the following payments to DOC:

  • a one time signing bonus payment of $415,000.00 to DOC by March 25, 2016.
  • VAC will pay to DOC monthly an amount equal to $0.15 per minute for completed intrastate telephone calls made using VAC's Offender Telephone Services and shall be paid within forty-five days following the month in which the call took place.
  • These payments shall replace any and all commissions or other monies payable under the Agreement by VAC to the DOC, or to any fund or third party designated by Premises Provider.

DOC will exercise its option to renew the contract for the period of January 2017 through December 2017.

In addition, the following Sections are hereby added to the Agreement:

"Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective permitted successors and assigns, including but not limited, to any new administration or head of Premises Provider. Neither Party shall assign any right and/or obligation under this Agreement without the other Party's prior written consent, which shall not be unreasonably withheld or delayed; provided, however, Company shall have the right to assign some or all its rights and/or obligations under this Agreement at any time to any entity that controls, is controlled by or is under common control with Company (each an "Affiliate") without the consent of the Premises Provider; provided, further, Company shall remain liable for any failure of any Affiliate to perform any assigned obligations. For the avoidance of doubt, a merger involving (i) Company or (ii) a sale of Company or all of Company's assets shall not constitute an assignment requiring consent of Premises Provider for purposes of this Agreement."

"Change-of-Law  Any rule, regulation, or other change mandated by any federal, state, or local authority which may interfere with or adversely affect Company's rights, obligations, or intended benefit under the Agreement shall entitle Company to, at its option, renegotiate or terminate the Agreement."

"Service Schedules.  Any Affiliate may sign in its own name a schedule for the delivery of services ("Service Schedule"), and such Service Schedule shall be considered a separate, but associated, contract incorporating this Agreement; provided, however, Company shall be responsible for its Affiliates' performance pursuant to such Service Schedule."

In the event any inconsistencies between the terms and conditions contained in the Agreement and the terms and conditions contained herein, the terms and conditions contained herein shall control. Except as set forth in this Addendum #1, the Agreement remains in full force and effect, without modification or amendment, and is hereby ratified and confirmed. This Addendum #1 may be executed in multiple counterparts, each of which shall be an original, and all of which shall be one and the same contract. Original signatures transmitted by facsimile or electronic mail shall be effective to create such counterparts. Each person whose signature appears below warrants and represents that they have the requisite authority to execute this Addendum #1 on behalf of the entity for which they are signing.

Additionally, as the supplier of DOC's offender telephone system, VAC has provided or agrees to provide DOC with the following technology to assist with safety and security efforts and utilization of the phone system:

1. Contraband Cell Phone Detection Systems:

-22 CellSense Units Model #CSFS

-4 On-Site Regional Trainings (4 hours, with up to 8 participants)

Two-hour classroom instruction
Two-hour hands-on, on-the-job training (OJT)
Training conducted by a certified MetraSens trainer
Certificate provided for each participant after completion of training

-Three (3) year warranty

-10 CEIA Hand Held Devices

- Hand Held Metal Detector PD240C-SET

Digital Hand Held Metal Detector
NIJ 0602.02 fully compliant
Optical, acoustical, and vibration alarm

-Two (2) year parts and shop labor warranty

2. Data Analysis/Investigation Tools:

-Data IQ Software

-Data IQ is a robust analytical tool designed to integrate disparate data sources into a single data mining and link analysis solution, allowing users to be more efficient and effective in generating actionable intelligence. Our exclusive GTL Data IQ contains all the power of integrating with GTL data sources PLUS the ability to integrate with any and all customer provided data sources that orginate outside of GTL.

-GTL will provide onsite training (location and time to be determined)

By signing below, both parties agree that the original contract provisions will be modified as described above and that all other terms and conditions of the original contract shall remain the same.

Approved:
Oklahoma Department of Corrections                         Value-Added Communications, Inc.

(Signature on File)