Master Agreement for Outsourcing Call Center Support - priceline.com LLC and CALLTECH Communications Inc.
CALLTECH
MASTER AGREEMENT FOR
OUTSOURCING CALL CENTER SUPPORT
THIS AGREEMENT (this "Agreement"), dated as of ____________, 1998, is
between priceline.com LLC, a Delaware limited liability company with offices
located at Five High Ridge Park, Stamford, Connecticut 06905-1325 (herein
"PRICELINE"), and CALLTECH Communications, Incorporated, with offices located at
4189 ArlingGate Lane, Columbus, Ohio 43228 (herein "CALLTECH").
WHEREAS, PRICELINE is engaged in several businesses including the
business of selling airline travel services through its Internet site
priceline.com (the "Site") and through its toll-free telephone number
800-PRICELINE (the "Toll-Free Number"); and
WHEREAS, PRICELINE desires to retain the services of CALLTECH to
provide customer support and telemarketing services to customers and potential
customers of PRICELINE's airline travel business (each, a "Customer"), and
CALLTECH desires to provide such services, on the terms and conditions set forth
in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties hereby agree as follows:
ARTICLE 1.
ENGAGEMENT OF CALLTECH; DESCRIPTION OF SERVICES
SECTION 1.1. ENGAGEMENT OF CALLTECH
Subject to the terms and conditions of this Agreement, PRICELINE hereby
retains CALLTECH to provide the Customer support and telemarketing services set
forth below (collectively, the "Services"), and CALLTECH hereby accepts such
engagement.
(a) CALLTECH will provide PRICELINE inbound teleservice
support for PRICELINE Customers who have purchased airline tickets through the
Site. CALLTECH will provide such services in accordance with the specifications
set forth on SCHEDULE A attached hereto and made a part hereof (collectively,
the "Inbound Teleservices").
(b) In addition to the Inbound Teleservices, CALLTECH will
provide inbound telemarketing services for Customers using the Site and/or the
Toll-Free Number to complete airline ticket request transactions with PRICELINE.
CALLTECH will provide such services in accordance with the specifications set
forth on SCHEDULE B attached hereto
PRIVATE/PROPRIETARY
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CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
and made a part hereof (the "Inbound Telemarketing Services" and, together
with the Inbound Teleservices and any other services provided by CALLTECH
pursuant to paragraphs (c) and (d) of this Section 1.1, being collectively
referred to herein as the "Services").
(c) During the Term (as hereinafter defined) of this
Agreement, CALLTECH shall, at the option of PRICELINE, provide outbound up-sell
telemarketing services to Customers on terms and conditions to be agreed upon in
good faith by the parties.
(d) CALLTECH will also provide such additional related
services as set out in this Agreement (herein "Related Services") including,
without limitation, the following:
1.1.1. CALLTECH agrees to notify PRICELINE on a daily basis of any
information required by PRICELINE's Customers. The parties agree that PRICELINE
is responsible for fulfilling such requests. Should CALLTECH's notice obligation
significantly interfere with its primary Service activities, CALLTECH will
notify PRICELINE. The parties agree that upon such notice, they will work
cooperatively toward an amicable solution.
1.1.2. CALLTECH agrees to provide PRICELINE with such information and
reports related to Services created by the CALLTECH telephone system. The
initial list of reports are set forth on SCHEDULE C annexed hereto and made a
part hereof. Additional reports, as agreed to by the parties, shall be provided
by CALLTECH during the Term and shall be deemed included on SCHEDULE C annexed
hereto effective as of the date agreed to by CALLTECH and PRICELINE. Report
topics may include performance, users, applications and lost Contacts (as
hereinafter defined), among others.
1.1.3. As set forth in SCHEDULES A and B annexed hereto, CALLTECH
agrees to allow PRICELINE, through reasonable mechanisms to be made available by
CALLTECH to PRICELINE, to monitor CALLTECH's service handling of Contacts for
Products (as hereinafter defined), provided that this activity doesn't
significantly interfere with primary Service activity. PRICELINE agrees to
provide CALLTECH with any and all information, reports, or feedback related to
Service quality, which are created by the monitoring of Contacts.
SECTION 1.2. PRODUCTS
CALLTECH will provide the Services for all airline related goods and
services offered by PRICELINE through the Site and the Toll-Free Number
(collectively, the "Products"), and any other products related thereto as
designated from time to time by
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
PRICELINE (the "Related Products"). All terms and conditions herein apply to
the Products and the Related Products. If Related Products (other than any
usual and customary updates, upgrades, new versions, extensions or
evolutionary developments to the Products as would typically be expected to
occur in products and services such as the Products) are introduced during the
Term of this Agreement, PRICELINE shall provide reasonable advance notice of
and information about such additional Related Products to CALLTECH to enable
CALLTECH to inform and train its CSRs (as defined in SCHEDULE A annexed
hereto) as necessary and appropriate to provide quality Services with respect
to such additional Related Products. The provision of any Services for such
additional Related Products by CALLTECH may require an adjustment of the fees
set forth on SCHEDULE F annexed hereto, but only if the additional Related
Products designated by PRICELINE are of a nature so as to require materially
more (or materially different and more expensive) resources from CALLTECH in
order for CALLTECH to provide quality Services meeting the performance metrics
set forth in this Agreement.
SECTION 1.3. HOURS OF OPERATION
(a) CALLTECH will provide the Inbound Teleservices 365 days
per year from 9 a.m. to 9 p.m. Eastern Standard Time, Monday through Friday,
and from 12 p.m. to 6 p.m. Eastern Standard Time, Saturdays and Sundays
commencing on the Teleservices Launch Date (as defined in SCHEDULE A annexed
hereto).
(b) CALLTECH shall provide the Inbound Telemarketing Services
twenty-four (24) hours per day, seven (7) days per week, 365 days per year
commencing on the Telemarketing Launch Date (as defined in SCHEDULE B annexed
hereto).
SECTION 1.4. FACILITY
CALLTECH will utilize its support facility at 4189 ArlingGate Lane,
Columbus, Ohio (the "Facility") for delivery of Services for the Products. The
Facility will be equipped with telephone systems, computer systems, and various
CALLTECH support and call monitoring tools, such as documentation and knowledge
bases, to be used in the delivery of the Services. CALLTECH shall bear all
expenses of operating the Facility, including all expenses for equipment and
systems necessary to connect to any telecommunications circuits or facilities
utilized by PRICELINE to bring calls to the Facility. SCHEDULE C annexed hereto
and made a part hereof identifies the minimum capabilities CALLTECH shall
maintain with respect to the Facility.
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
ARTICLE 2.
SERVICE LEVELS
SECTION 2.1. DEFINITIONS; SERVICE LEVELS
2.1.1. CALL DEFINITIONS:
ACTUAL HANDLING TIME: Shall mean (i) in the case of an Inbound Call (as
hereinafter defined) by a CSR or an outbound Customer callback, the
time that is measured from when the call is physically answered by the
CSR or the PRICELINE Customer respectively until the call is physically
terminated; and any additional wrap up work performed related to such
call prior to becoming physically available to receive the next Inbound
Call or to make the next Customer callback, and (ii) in the case of an
Automated Call (as hereinafter defined), the time that is measured from
when the caller enters the CallTech Voice Response Unit (VRU) until
such caller leaves the VRU.
AUTOMATED CALL: Shall mean an Inbound Call that is delivered to an
electronic voice message rather than to a CSR as the means of providing
Services as described in this Agreement.
CONTACT: Shall mean a support incident, defined as a single in-coming
support request via telephonic voice (a "Voice Contact"), fax or
written or electronic correspondence (an "E-mail Contact") regarding
any Product.
INBOUND CALL: Is defined as a call that has physically arrived to
CALLTECH's Interactive Voice Response Unit (an "IVR") or similar system
by way of PRICELINE's IVR or other mechanism for the purpose of
providing Services as described in this Agreement.
MAXIMUM HOLD TIME: Shall be measured from the time an Inbound Call is
placed in a call group queue, prior to being physically delivered and
answered by a CSR or an automated voice response unit (a "VRU").
SECTION 2.2. SERVICE LEVELS
SCHEDULE E annexed hereto and made a part hereof sets forth the
performance requirements of CALLTECH applicable to its handling of Inbound
Calls, Contacts and the Actual Handling Time for Inbound Calls for all Services.
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SECTION 2.3. ESCALATION PROCEDURE
PRICELINE recognizes that there may be instances where CALLTECH will
not be able to resolve a Customer Contact without PRICELINE's assistance.
Promptly following the execution of this Agreement, both parties will mutually
agree to an escalation procedure for resolving support problems that require
PRICELINE's technical personnel and/or a PRICELINE third party vendor. PRICELINE
agrees to provide necessary and timely resources to CALLTECH to enable CALLTECH
to resolve escalated problems in a timely manner. Examples of such resources
include documentation, knowledgebase, escalation process, hardware, software and
support technicians.
SECTION 2.4. CUSTOMER CALLBACKS
CALLTECH agrees that in the event a CALLTECH CSR is unable to resolve a
support incident during an Inbound Call, the CSR will make all reasonable
efforts to contact the Customer as soon as possible with the solution. All
telecommunications costs for these callbacks shall be borne by Priceline. In the
event Priceline selects to be billed on a per-call basis, these callbacks shall
be considered a billable call.
SECTION 2.5. CALL LENGTH
PRICELINE and CALLTECH recognize that the amount of time a CSR spends
on an individual voice Contact can impact both Service levels and fees.
PRICELINE's expected average call length for Products is set out on SCHEDULE E
annexed hereto. If CALLTECH experiences any significant increase in call length,
CALLTECH agrees to notify PRICELINE and will work toward determining how to
accommodate the increase by either modifying the Service level or increasing the
staff as mutually agreed.
ARTICLE 3.
PRICELINE TOOLS, TELECOMMUNICATIONS AND TRAINING
SECTION 3.1. PRICELINE TOOLS
PRICELINE agrees to provide CALLTECH with sufficient copies of Products
and related materials, including, but not limited to, copies of software,
documentation, licenses and Product information as reasonably necessary to
provide Services for the Products. CALLTECH acknowledges that its use of such
tools may be subject to the terms of license agreements required by PRICELINE or
its third party suppliers, and CALLTECH agrees to abide by all the terms and
conditions of such licenses in connection with its use of such tools. PRICELINE
shall only be obligated to supply one copy of any documentation or other such
written materials relating to any such tools, and CALLTECH may make such
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
number of copies (and only such number of copies) of such materials as are
necessary for it to provide Services hereunder.
SECTION 3.2. TELECOMMUNICATIONS
PRICELINE assumes all expenses related to the sending of Contacts to
CALLTECH, including provision of telecommunication lines and the bearing of
network costs associated with routing Inbound Calls to the Facility. CALLTECH is
responsible for properly equipping the Facility with the necessary hardware to
receive and handle Contacts as required by this Agreement.
SECTION 3.3. TRAINING
PRICELINE will provide one copy of necessary training materials to
CALLTECH on all versions and aspects of Products that are unique or specific to
PRICELINE's services at no charge to CALLTECH. CALLTECH trainers at CALLTECH's
Facility will provide training for CALLTECH CSRs, unless otherwise agreed to in
writing by the parties. Training will be delivered based on technical
documentation for all aspects of the Products which are unique or specific to
PRICELINE's services and all updates, upgrades and revisions thereto required to
provide the Services will be provided to CALLTECH by PRICELINE at no charge to
CALLTECH. CALLTECH agrees to use said documentation for Service purposes only.
CALLTECH agrees to use all training materials for training and support purposes
for the Services only. CALLTECH agrees to provide standard CALLTECH support
training to its employees at the Facility, which shall include (at a minimum)
training on the standard types of underlying hardware, operating system and
application (e.g., browser) software required or typically used in conjunction
with the Products. PRICELINE shall have the right to review and approve the
level of proficiency to which the CSRs are to be trained by CALLTECH to
facilitate the performance of quality Services, which approval shall not be
unreasonably withheld. Except in an emergency and upon consultation with
PRICELINE, CALLTECH shall not assign CSRs to provide Services hereunder unless
they have received adequate training as approved by PRICELINE and otherwise meet
the requirements applicable to CSR's as set forth on SCHEDULES A and B annexed
hereto.
ARTICLE 4.
FEES
SECTION 4.1. FEES FOR SERVICE
CALLTECH agrees to perform the Services for the fees set forth on
SCHEDULE E annexed hereto and made a part hereof. Except as provided in Section
5.1 of this Agreement, such fees cannot be modified by CALLTECH.
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SECTION 4.2. PAYMENT
Commencing with the end of the month of the Telemarketing Launch Date
and each month thereafter during the Term (as hereinafter defined), CALLTECH
will provide PRICELINE with a monthly itemized statement for the Services
rendered during the preceding monthly period. In addition, CALLTECH will bill
and PRICELINE will pay for Related Services and such other charges as are
provided for herein on an as incurred basis (along with its regular monthly
invoice). PRICELINE will pay net thirty (30) days from receipt of each invoice
in United States dollars. If PRICELINE is delinquent in the payment of any
invoice, and fails to remedy the delinquency within thirty (30) days after
written notice of delinquency is received by PRICELINE, PRICELINE shall be
obligated to pay late charges in a total amount not to exceed one and one-half
percent (1 1/2%) per month on the unpaid balance of any undisputed portion of
the invoice which is unpaid. In the event of a dispute with regard to a portion
of any invoice, the disputed portion may be withheld until resolution of the
dispute but any undisputed portion shall be paid as provided herein.
SECTION 4.3. RECORD KEEPING
CALLTECH agrees to keep accurate books of account and records (in
accordance with generally accepted accounting principles consistently applied)
at the address set forth on the first page of this Agreement detailing all fees
for its Services. Such books and records shall be maintained by CALLTECH for a
period of three (3) years after termination or expiration of this Agreement.
Upon reasonable notice of not less than thirty (30) days, PRICELINE shall have
the right, for each twelve (12) month period during the Term, to inspect and
audit such books of account and records to verify the accuracy of the
information contained in any invoice or the amount of fees for Services paid to
all CALLTECH hereunder. The parties agree that any dispute as to the fees paid
to or charged by CALLTECH for the Services that can not be resolved by the
parties shall be settled by arbitration as provided in Section 7.11 of this
Agreement.
SECTION 4.4. TAXES
CALLTECH shall be solely responsible for the preparation and submission
to applicable authorities of its CSRs' or other employees' income tax and FICA
forms and the payment of all of such persons' salaries, employer contributions
and employee benefits. PRICELINE shall be solely responsible for all applicable
federal, state and local taxes and charges arising out of or related to sales of
the Products and any such taxes shall be assumed and paid for by PRICELINE.
CALLTECH and PRICELINE shall be solely responsible for the preparation and
submission to applicable authorities of their respective federal, state and
local income taxes attributable to income derived by each such party in
connection with the subject matter of this Agreement.
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
ARTICLE 5.
TERM OF AGREEMENT
SECTION 5.1. TERM
The initial term of this Agreement shall commence on the date hereof
and shall continue for a period of one (1) year from the Telemarketing Launch
Date (the "Initial Term"). This Agreement shall automatically be extended for
successive one (1) year terms (each a "Renewal Term") unless either party gives
the other written notice of its intention not to extend this Agreement at least
ninety (90) days prior to the end of the then current term, or unless terminated
as provided elsewhere herein (the Initial Term, together with each Renewal Term,
if any, being collectively referred to herein as the "Term"). Any time after
expiration of the Initial Term, CALLTECH may change the prices and terms on
which Services will be provided by providing at least one hundred twenty (120)
days prior written notice to PRICELINE (the "Fee Notice Period"). PRICELINE
shall have the right, in its sole discretion, to reject such changes and, in
such case, this Agreement shall automatically terminate without penalty to
either party upon expiration of the Fee Notice Period.
SECTION 5.2. CONDITIONS FOR TERMINATION BASED ON NON-PERFORMANCE
5.2.1. PRICELINE may terminate this Agreement without penalty if
CALLTECH fails to meet any of its performance obligations hereunder or otherwise
commits a breach of any term or provision of this Agreement and fails to cure
the same within thirty (30) days after written notice from PRICELINE. This
Agreement shall automatically terminate forthwith without notice in the event
CALLTECH's liabilities exceed its assets, or if CALLTECH is unable to pay its
debts as they become due, or files or has filed against it a petition in
bankruptcy, for reorganization or for the adoption of an arrangement under any
present or future bankruptcy, reorganization or similar law (which petition if
filed against CALLTECH shall not be dismissed within sixty (60) days from the
filing date), or if CALLTECH makes a general assignment for the benefit of its
creditors or is adjudicated a bankrupt, or if a receiver or trustee of the
CALLTECH's business or all or substantially all of the CALLTECH's property is
appointed, or if CALLTECH discontinues its business.
5.2.2. Any default claimed by CALLTECH against PRICELINE which cannot
be resolved by negotiation between the parties shall be referred to binding
arbitration by CALLTECH as provided in Section 7.11 of this Agreement, and
CALLTECH shall not be entitled to terminate this Agreement or suspend, in whole
or in part, the performance of its obligations hereunder on account of any such
breach pending outcome of the arbitration.
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SECTION 5.3. TERMINATION FOR CONVENIENCE
PRICELINE may terminate this Agreement at any time during the Initial
Term and any Renewal Term without cause upon at least ninety (90) days written
notice to CALLTECH. In such event, PRICELINE shall pay an early termination fee
to CALLTECH to compensate CALLTECH for all costs and expenses actually and
reasonably incurred by CALLTECH for personnel and equipment engaged in providing
Services to PRICELINE at the time of termination until such resources are either
discharged or re-deployed by CALLTECH to provide services for other parties (but
in any event for a period not to exceed sixty (60) days after termination).
CALLTECH will promptly and in good faith attempt to re-deploy such resources as
soon after termination as possible so as to reduce the amount of such early
termination fee payable by PRICELINE to the extent reasonably possible. In no
event shall the total amount of such termination fee exceed the amount billed to
PRICELINE for the Services (excluding any Related Services) provided in the
month immediately preceding the giving of the notice of termination by
PRICELINE.
ARTICLE 6.
INDEMNITY; LIABILITY AND DISCLAIMERS; INSURANCE
SECTION 6.1. INDEMNIFICATION BY CALLTECH
Subject to the limitations of liability set forth in Section 6.3.2 of
this Agreement, CALLTECH agrees to indemnify and save harmless PRICELINE and its
affiliates, and their respective officers, directors, shareholders, members,
partners, employees, agents and other personnel, from any liabilities, causes of
action, lawsuits, penalties, damages, claims or demands (including the costs and
expenses and reasonable attorneys' fees on account thereof) that may be made:
(i) by any person or entity for injuries or damages of any kind or nature
(including but not limited to personal injury, death, property damage and theft)
resulting from or relating to (x) the negligent or willful acts or omissions of
CALLTECH, those of persons or entities furnished by CALLTECH, or CALLTECH's
employees, CSRs, agents or subcontractors, (y) the use of CALLTECH's Services
furnished hereunder, (ii) CALLTECH's breach of this Agreement or its failure to
perform any obligation hereunder, or (iii) by any employee or former employee of
CALLTECH or any of its CSRs, agents or subcontractors for which CALLTECH's
liability to such person or entity would otherwise be subject to payments under
state workers' compensation or similar laws. CALLTECH, at its own expense,
agrees to defend PRICELINE, at PRICELINE's request, against any such liability,
cause of action, lawsuit, penalty, claim, damage or demand. PRICELINE agrees to
notify CALLTECH promptly of any written claims or demands against PRICELINE for
which CALLTECH is responsible hereunder. The foregoing indemnity shall be in
addition to any other indemnity obligations of CALLTECH set forth in this
Agreement.
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SECTION 6.2. INDEMNIFICATION BY PRICELINE
Subject to the limitations of the liability provisions of Section 6.3.2
of this Agreement, provided that CALLTECH cooperates with PRICELINE, PRICELINE
agrees to indemnify and hold CALLTECH and its affiliates, and their respective
officers, directors, shareholders, members, partners, employees, agents and
other personnel, harmless from any loss, liability, damages or costs based on
the operations of any Products or any infringement by the Products of any patent
or proprietary right of a third party. CALLTECH agrees to notify PRICELINE
promptly of any written claims or demands against CALLTECH for which PRICELINE
is responsible hereunder. PRICELINE shall have no liability for, and CALLTECH
shall indemnify and hold PRICELINE and its affiliates, and their respective
officers, directors, shareholders, members, partners, employees, agents and
other personnel, harmless from and against, any claim based upon CALLTECH's
conduct, if such infringement, cause of action or other damage would have been
avoided but for that conduct.
SECTION 6.3. WARRANTY; LIMITATION OF LIABILITY
6.3.1. CALLTECH warrants to PRICELINE that the Services furnished
under this Agreement will be furnished in a professional and workmanlike
manner and in conformance with the metrics set forth in this Agreement.
6.3.2. Except for liabilities described in clauses (i) and (ii)
below, CALLTECH's and PRICELINE's total liability hereunder will be limited to
a maximum amount of FIVE MILLION DOLLARS ($5,000,000.00). The limitations of
this Section shall not apply to: (i) any damage or loss to PRICELINE arising
from any misappropriation of PRICELINE's confidential information in breach of
this Agreement or (ii) damages resulting from personal injury or death or
damage to tangible real or personal property caused by CALLTECH or resulting
from CALLTECH's negligence.
SECTION 6.4. INSURANCE
CALLTECH currently maintains at its sole cost and expense worker's
compensation insurance as required by applicable law, general liability
insurance with limits of not less than $1,000,000 bodily injury per occurrence
(including death) and $500,000 property damage per occurrence. In addition, CALL
TECH currently maintains automobile liability insurance with a limit of not less
than $1,000,000 bodily injury (including death) per occurrence. CALLTECH
currently maintains Contractual Liability coverage to cover liability assumed
under this Agreement. At all times under this Agreement CALLTECH shall maintain
appropriate insurance coverages or that which is required by law for a business
of like kind. CALLTECH shall provide PRICELINE with
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
copies of certificates of such insurance from time to time during the Term
upon request by PRICELINE.
ARTICLE 7.
GENERAL PROVISIONS
SECTION 7.1. NON-DISCLOSURE
7.1.1. As used in this Section 7.1, "Confidential Information" means
private, confidential, trade secret or other proprietary information (whether or
not embodied or contained in some tangible form) relating to any actual or
anticipated business of PRICELINE or CALLTECH, as applicable, and their
respective affiliates, or any information which, if kept secret, will provide
the party disclosing such Confidential Information (in each case a "Discloser")
an actual or potential economic advantage over others in the relevant trade or
industry. As defined herein, Confidential Information includes, without
limitation, formulae, compilations, computer programs and files, devices,
methods, techniques, know-how, inventions, research and development, business
data (including cost data), strategies, methods, prospects, plans and
opportunities, customer lists, marketing plans, specifications, financial
information, invention disclosures, patent applications (whether abandoned or
not), techniques, products and services of the Discloser and identified orally
or in writing by the Discloser as confidential, proprietary or trade secret
information. Confidential Information further includes any information or
material received in confidence by the Discloser from a third party, and/or
information held in confidence by a third party and made available to the party
receiving Confidential Information (in each case a "Recipient").
7.1.2. Except as required in the performance of its obligations under
this Agreement or with the prior written authorization of the Discloser, the
Recipient shall not directly or indirectly use, disclose, disseminate or
otherwise reveal any Confidential Information and shall maintain Confidential
Information in confidence for a period of five (5) years from the date of
termination or expiration of this Agreement, for whatever reason. Recipient
shall use the same care and discretion to protect Confidential Information of
the Discloser as Recipient uses to protect its own confidential information, but
not less than a reasonable standard of care. Recipient shall restrict use of the
Discloser's Confidential Information to its employees, and to those consultants
who have been pre-approved in writing by Discloser, who have a need to know the
Confidential Information and who have a written agreement with Recipient
sufficient to comply with this Agreement.
7.1.3. Nothing contained in this Section 7.1 shall in any way
restrict Recipient's rights to use, disclose, or otherwise dispose of any
information which:
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PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
(a) At the time of disclosure by Discloser was already in the
possession of Recipient (provided such information had not been previously
furnished to Discloser by Recipient), as shown by a written record;
(b) Is independently made available to Recipient by an
unrelated and independent third party whose disclosure does not constitute a
breach of any duty of confidentiality owed to Discloser;
(c) Is generally available to the public in a
readily-available document; or
(d) Is compelled to be disclosed pursuant to a court order,
provided that Discloser shall first have the opportunity to request an
appropriate protective order.
7.1.4. Nothing in this Agreement shall be construed as granting
any rights or licenses in any Confidential Information to any person or entity.
7.1.5. Upon termination or expiration of this Agreement for any
reason whatsoever, PRICELINE and CALLTECH shall leave with or return to the
other all documents, records, notebooks, computer files, and similar
repositories or materials containing Confidential Information of the other
party and such other party's affiliates, including any and all copies thereof.
7.1.6. CALLTECH and PRICELINE agree that the terms of this Section
7.1 are reasonable and necessary to protect their respective business
interests and that the other party would suffer irreparable harm from a breach
of this Section 7.1. Thus, in addition to any other rights or remedies, all of
which shall be deemed cumulative, CALLTECH and PRICELINE and/or their
respective affiliates, as applicable, shall be entitled to obtain injunctive
relief to enforce the terms of this Section 7.1.
SECTION 7.2. INTELLECTUAL PROPERTY
7.2.1. CALLTECH agrees to disclose and furnish promptly to
PRICELINE any and all technical information, computer or other apparatus
programs, inventions, specifications, drawings, records, documentation, works
of authorship or other creative works, ideas, knowledge or data, written, oral
or otherwise expressed, first made or created for and paid for by PRICELINE
under this Agreement (hereinafter "Work Product"). The Work Product
specifically includes, without limitation, any scripts, lists of frequently
asked questions and responses thereto, etc., prepared and utilized by CALLTECH
in connection with providing Services regarding the Products.
7.2.2. Subject to the provisions of this Section 7.2.2, CALLTECH
agrees to assign and does hereby assign to PRICELINE all right, title and
interest in and to any Work
-12-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
Product. To the extent such Work Product qualifies as a "work made for hire",
it shall be deemed to be such. Notwithstanding the foregoing, (i) CALLTECH
retains for itself a perpetual, nonexclusive, royalty-free, unrestricted right
and license to any structure, architectures, ideas and concepts subsisting in
such Work Product, and (ii) CALLTECH shall be free to independently develop
software and other works similar to any works developed by the performance of
the Services under this Agreement, whether by other employees of CALLTECH, in
collaboration with third parties, or for other customers.
7.2.3. CALLTECH agrees to take all reasonable steps, at PRICELINE's
expense, to assist PRICELINE in the perfection of the rights assigned
hereunder.
7.2.4. CALLTECH shall not acquire any right to any tradename,
trademark, servicemark, copyright, patent or other form of intellectual property
of PRICELINE. CALLTECH shall not use such intellectual property of PRICELINE in
any manner except in the performance of its obligations hereunder as permitted
or contemplated in connection therewith.
SECTION 7.3. SEVERABILITY; WAIVER
If any of the provisions of this Agreement a shall be held invalid or
unenforceable by reason of the scope or duration thereof or for any other
reason, such invalidity or unenforceability shall attach only to the particular
aspect of such provision found invalid or unenforceable and shall not affect any
other any other provision of this Agreement. To the fullest extent permitted by
law, this Agreement shall be construed as if the scope or duration of such
provision had been more narrowly drafted so as not to be invalid or
unenforceable.
SECTION 7.4. NO OTHER AGREEMENTS
The parties acknowledge having read this Agreement and agree to be
bound by its Terms. This Agreement and the Schedules attached hereto and
supersedes and replaces any existing agreement, written or otherwise, entered
into between or among PRICELINE and CALLTECH relating to the subject matter
hereof except that the provisions of that certain Nondisclosure Agreement, dated
December 19, 1997, between PRICELINE and CALLTECH, shall remain in full force
and effect as it relates to the exchange of information between the parties from
the date of such Nondisclosure Agreement through the date of this Agreement.
-13-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SECTION 7.5. ASSIGNABILITY
This Agreement shall not be assigned by either party without the prior
written consent of the other party, which shall not be unreasonably withheld or
delayed, except that PRICELINE may assign this Agreement or any of its rights
and responsibilities hereunder, in whole or in part, to any affiliate or any
entity which acquires all or substantially all of the assets or operations of
its Internet-related services business dealing with the Products, with notice to
but without the consent of CALLTECH. Any such attempted assignment lacking
consent where required shall be null and void.
SECTION 7.6. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with
the laws of the State of Ohio, with regard to its choice of law provisions.
SECTION 7.7. FORCE MAJEURE; DISASTER RECOVERY
Each party shall be released from and shall have no liability for any
failure beyond its reasonable control, including, but not limited to, acts of
God, labor troubles, strikes, lockouts, severe weather, delay or default of
utilities or communications companies or accidents.
SECTION 7.8. INDEPENDENT CONTRACTOR
With respect to all matters relating to this Agreement, CALLTECH shall
be deemed to be an independent contractor. CALLTECH shall not represent itself
or its organization as having any relationship to PRICELINE other than that of
an independent agent for the limited purposes described in this Agreement.
SECTION 7.9. AUTHORIZED REPRESENTATIVES
CALLTECH shall designate and maintain at all times hereunder a project
manager to serve as a single point of contact for PRICELINE to assist in the
resolution of all technical, operational and implementation-related matters.
CALLTECH shall endeavor not to change such project manager without PRICELINE's
approval, and in any event shall notify PRICELINE of any such changes. In
addition, each party shall, at all times, designate one representative who shall
be authorized to take any and all action and/or grant any approvals required in
the course of performance of this Agreement. Such representations shall be fully
authorized to act for and bind such party including the approval of amendments
to this Agreement. Until written notice to the contrary (as delivered in
accordance with Section 7.9), the authorized representatives of the parties are
as follows:
-14-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
For PRICELINE: For CALLTECH:
Ginny L. Taylor Robert J. Massey
Priceline.com LLC CallTech Communications
5 High Ridge Park Incorporated
Stamford, CT 06905-1326 4189 ArlingGate Lane
Columbus, OH 43228
SECTION 7.10. NOTICES
Any notice required or permitted hereunder shall be deemed sufficient
if given in writing and delivered personally, by facsimile transmission, by
reputable overnight courier service or United States mail, postage prepaid, to
the addresses shown below or to such other addresses as are specified by similar
notice, and shall be deemed received upon personal delivery, upon confirmed
facsimile receipt, two (2) days following deposit with such courier service, or
three (3) days from deposit in the United States mails, in each case as herein
provided:
If to PRICELINE: If to CALLTECH:
Priceline.com LLC CallTech Communications
5 High Ridge Park Incorporated
Stamford, CT 06905-1326 4189 ArlingGate Lane
Attention: Jesse Fink Columbus, OH 43228
Attention: Robert J. Massey
Phone: 203-705-3025 Phone: 614-621-5514
Fax: 203-595-8264 Fax: 614-461-5626
-15-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
With a Copy to: With a Copy to:
Jeff Brandt, Esq. C.J. Pettiti
Priceline.com LLC CallTech Communications Incorporated
5 High Ridge Park 4189 ArlingGate Lane
Stamford, CT 06905-1326 Columbus, OH 43228
Phone: 203-705-3011 Phone: 614-621-5512
Fax: 203-595-8264 Fax: 614-461-5626
A party may change its address and the name of its designated recipient
of copies of notices for purposes of this Agreement by giving the other parties
written notice of the new name and the address, phone and facsimile number of
its designated recipient in accordance with this Section 7.9.
SECTION 7.11. REPRESENTATIONS
Except as noted herein, no employee, agent or representative of
either party will have the authority to bind the other party to any
representation, oral or written, or any warranty concerning the Services or
the performance of the Services.
SECTION 7.12. ARBITRATION
Any disputes or controversy, which this Agreement expressly provides
to be resolved by arbitration, shall be settled by arbitration in accordance
with the Center for Public Resources Rules for Non-Administered Arbitration of
Business Disputes. The parties shall each select an arbitrator sufficiently
knowledgeable in the areas of law necessary to arbitrate the controversy, and
the two (2) arbitrators selected will select a third arbitrator (collectively,
the "Arbitration Panel"). The Arbitration Panel shall arbitrate the
controversy by majority decision. The United States Arbitration Act, 9 U.S.C.,
shall govern the arbitration, and any court having jurisdiction thereof may
enter judgment upon
-16-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
the majority decision rendered by the Arbitration Panel. The Arbitration Panel
is not empowered to award damages in excess of actual damages, including
punitive damages. The Arbitration Panel shall determine issues for resolution
but may not limit, expand or otherwise modify the terms of the Agreement. The
Arbitration Panel is not empowered to act or make any award other than an
award based solely on the rights and obligations of the parties prior to any
termination of this Agreement. Each party shall bear its own costs and
expenses of the arbitration, except that the parties will share equally the
compensation and expenses of the Arbitration Panel. This requirement for
arbitration does not constitute a waiver of any right of termination under
this Agreement. A request to a court for interim measures shall not waive the
obligation to arbitrate. The parties, their representatives, other
participants and the Arbitration Panel shall hold in confidence the existence,
content and result of the arbitration.
SECTION 7.13. COMPLIANCE WITH LAWS
CALLTECH shall comply with the provision of all applicable federal,
state, county and local laws, ordinances, regulations, and codes including,
but not limited to, CALLTECH's obligations as an employer with regard to the
health, safety and payment of its employees, and identification and
procurement of required permits, certificates, approvals, and inspections in
CALLTECH's performance of this Agreement. Notwithstanding whether a
specification is furnished, if software, software products and services, or
containers furnished are required to be constructed, packaged, labeled, or
registered in a prescribed manner, CALLTECH shall comply with federal law and
applicable state or local law. CALLTECH shall indemnify PRICELINE for, and
defend PRICELINE against, any loss or damage sustained because of CALLTECH's
noncompliance.
SECTION 7.14. RIGHT OF ACCESS
CALLTECH shall permit reasonable access for PRICELINE to its facilities
in connection with work hereunder. No charge shall be made for such visits.
IN WITNESS WHEREOF, the parties hereto have signed this Master
Agreement Technical Support Outsourcing effective as of the date set forth on
the first page hereof.
-17-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
CALLTECH COMMUNICATIONS, PRICELINE.COM LLC
INCORPORATED
By: By:
------------------------------- -------------------------------
Name: Name:
----------------------------- -----------------------------
Title: Title:
---------------------------- ----------------------------
-18-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SCHEDULE A
----------
INBOUND TELESERVICING SPECIFICATIONS
------------------------------------
PROGRAM DESCRIPTION: PRICELINE will be processing airline-ticketing transactions
requiring a highly qualified service bureau to accept calls from Customers,
answer general Product-related questions, and make any Customer requested travel
itinerary changes.
CALL OBJECTIVE: To service Customers who have already purchased airline
tickets through the Site.
LAUNCH: It is estimated that the launch date for the Inbound Teleservices
shall be April 20, 1998. However, the parties agree that such launch date may
be extended by PRICELINE for up to an additional four (4) weeks thereafter.
The actual launch date applicable to the Inbound Teleservices is hereinafter
referred to as the "Teleservices Launch Date". PRICELINE will provide
reasonable advance notice of the actual Teleservices Launch Date once it is
determined by PRICELINE.
CALL HANDLING: The call flow will be as follows:
o Initially calls with be handled by a VRU that will collect various pieces
of information as determined by PRICELINE.
o The calls will then be transferred to CALLTECH where the transaction will
be completed by a CALLTECH customer service representative ("CSR").
o Calls will be first handled by a VRU that PRICELINE owns which will collect
information to complete the call. Screen pops and/or whispers will be
available after the Teleservices Launch Date after technical compatibility
is established.
o The location of the VRU is to be determined by PRICELINE. It may reside at
PRICELINE facilities or at the CALLTECH Facility.
o After the VRU portion of the call, CALLTECH will receive the call through
CALLTECH's ACD.
o The connection from CALLTECH to PRICELINE's computer sales system will be
through PRICELINE's server. PRICELINE's server may be located either at
CALLTECH's Facility or remotely with a frame relay hookup to CALLTECH's PC
network.
TRAINING AND CSRS: PRICELINE will be heavily involved in training CSRs.
PRICELINE will have several scripted call flows that CSRs will follow. CSR
training will
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
be 5-10 working days. All CSRs utilized for Inbound Teleservices will be
dedicated PRICELINE CSRs and will be Worldspan qualified. CALLTECH will
provide a minimum of 3 fully trained and dedicated CSRs per shift commencing
on the Teleservices Launch Date except that on the Saturday and Sunday 12 p.m.
to 6 p.m. Eastern Standard Time shifts, a minimum of only 2 fully trained and
dedicated CSRs are required.
o The CSRs will answer general post sale questions.
o The CSRs will make any Customer requested travel itinerary changes and must
be Worldspan qualified.
QUALITY ASSURANCE: An extensive monitoring program will be implemented.
PRICELINE will perform remote CSR monitoring at least weekly, and on-site
monitoring at least monthly. CALLTECH will maintain a CSR/supervisor ratio of 10
to 1 for this program during the initial stages of implementation, which shall
not be for a period of less than three (3) months. CALLTECH will monitor at
least 10 calls per CSR per month. All sales will have a tape recorded sales
verification script that must be read verbatim. CALLTECH must retain recorded
verifications for 1 year and retrieve verifications within 24 hours of
PRICELINE's request. PRICELINE will also survey Customers via outbound telephone
survey and by mail. PRICELINE will staff one full time person at the CALLTECH
Facility immediately and will have the right to provide additional staff at the
Facility as it determines is reasonably necessary.
VRU CAPABILITY: PRICELINE plans to develop the front end VRU prompter
capability. CALLTECH can provide this capability should PRICELINE wish to have
CALLTECH handle this responsibility. CALLTECH will maintain a VRU to capture
calls from the PRICELINE VRU.
OTHER REQUIREMENTS: CALLTECH will maintain a reliable PC network interconnected
by Ethernet network to a server on site, or to a server off site. If the server
is off-site, PRICELINE will provide a telecommunications connection.
-2-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SCHEDULE B
----------
INBOUND TELEMARKETING SERVICES
------------------------------
PRICELINE PROGRAM DESCRIPTION: PRICELINE will be offering airline-ticketing
concierge services requiring a highly qualified service bureau to accept inbound
calls from Customers, answer Product-related questions and complete PRICELINE
Ticket Requests (a "PTR").
CALL OBJECTIVE: To service Customers using the PRICELINE Toll-free Number for
PTRs and to complete airline ticket transactions.
LAUNCH: April 6, 1998 (the "Telemarketing Launch Date").
CALL HANDLING: The call flow will be as follows:
o The calls will be first handled by a CALLTECH VRU that will provide a brief
explanation of the service and collect various pieces of information,
including credit card information.
o The calls will then be transferred to CALLTECH CSR where the transaction
will be completed.
TRAINING AND CSRS: PRICELINE will be heavily involved in training CSRs.
PRICELINE will provide several scripted call flows that CSRs will follow.
Training will be three (3) days with all CSRs being "web qualified." All CSRs
for Inbound Telemarketing will be dedicated PRICELINE CSRs except that CSRs may
be shared from 12 a.m. to 6 a.m. during each service day. CALLTECH will provide
ten (10) dedicated CSRs per shift commencing on the Telemarketing Launch Date
for the first thirty (30) days following the Telemarketing Launch Date.
Thereafter, PRICELINE and CALLTECH will agree to any adjustments in the number
of such CSRs from time to time during the Term to ensure the prompt delivery of
quality Services.
QUALITY ASSURANCE: An extensive monitoring program will be implemented.
PRICELINE will perform on-site and remote CSR monitoring at least weekly.
CALLTECH will provide PRICELINE with the capability to perform remote
monitoring. CALLTECH will maintain a CSR/supervisor ratio of 10 to 1 for this
program during the initial stages of
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
implementation, which shall not be for a period of less than three (3) months.
CALLTECH will monitor at least 10 calls per CSR per month. CALLTECH will
record Customer request verification and credit card submissions for one (1)
year and retain retrieved recorded items within 24 hours of PRICELINE's
request. Customer PTRs are expected to be 7-12 minutes in duration. Contract
fulfillment is the call objective. CALLTECH will work with PRICELINE to
develop Frequently Asked Questions ("FAQ") interactive web based response
capabilities for CSR answers to commonly asked questions.
VRU CAPABILITY: CALLTECH will provide the front end VRU capability.
OTHER REQUIREMENTS: CALLTECH will provide the capability to digitally record and
report credit card transactions, and bill calls to credit cards. All CALLTECH
CSR seats will have Pentium PC's with web connectivity.
-2-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SCHEDULE C
----------
CALLTECH SERVICE REPORTS
------------------------
ACD reports for each of the Inbound Teleservices and the Inbound
Telemarketing Services, on a daily basis, of program statistics including the
number of Inbound Calls answered, abandoned and percentage of calls answered in
thirty (30) seconds. This report will be provided (i) in one hour increments
with a day total, (ii) on a daylong basis by 9 a.m. Eastern Standard Time in
respect of the prior day's Services, (iii) weekly in daylong increments through
11:59 p.m. Eastern Standard Time of each Saturday, and (iv) monthly in daylong
increments through 11:59 p.m. Eastern Standard Time of the last day of each
month, and prior to the invoice of monthly fees by CALLTECH.
ACD reports for each of the Inbound Teleservices and the Inbound
Telemarketing Services, on a daily basis, of CSR statistics including CSR name,
hours logged on ACD, the number of Inbound Calls handled, talk time, hold time,
after call work time, number of transfers and outbound calls. This report will
be provided (i) in one hour increments with a day total, (ii) on a daylong basis
by 9 a.m. Eastern Standard Time in respect of the prior day's Services, (iii)
weekly in daylong increments through 11:59 p.m. Eastern Standard Time of each
Saturday, and (iv) monthly in daylong increments through 11:59 p.m. Eastern
Standard Time of the last day of each month, and prior to the invoice of monthly
fees by CALLTECH.
Monthly reports on other Services other than the Inbound Teleservices and
the Inbound Telemarketing Services prior to the invoice of such other Services
by CALLTECH.
Daily, weekly and monthly CSR training reports, turnover reports, reason
reports and monitoring reports for each of the Inbound Teleservices and the
Inbound Telemarketing Services. The content of each report shall be mutually
agreed to by PRICELINE and CALLTECH.
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SCHEDULE D
----------
CALL CENTER CAPABILITIES
------------------------
The Facility can seat 300 agents and has extensive capabilities including the
following:
SWITCHING PLATFORM: LOCAL AREA NETWORK:
BCS (Cortelco) DSP1000 Digital Switch Windows NT 4.0
5000 port capacity Redundant Server/Mirroring
Advanced ACD System DLT Library Backup System
Built in Digital T1 Interface Firewalled Internet Link
AT&T ISDN Complaint 10/100BT
Full Redundancy
Power Backup System
Supports and conforms to CTI standards
UNIX HOST - INTERNET SERVERS (5): IVRU PLATFORM:
Unix Servers Redundant 48 port system
Cisco 2501 routers Pentium based processors
Multiple T-1 connections to the Internet Dialogic Voice Boards
Firewall (Livingston) Development with EASE
FAX SERVER: CSR WORKSTATIONS CONFIGURATION:
486 Based Server P100 or Higher Processors
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
Alcom Lan Fax Redirector Server 16 MB or Greater of RAM
Digital T1 Interface to DSP1000 Windows '95
GammaLink Fax Boards Connected to LAN
Each Facility supervisor has a master display screen that shows all the CSR's
that are signed on to the switch, the status of each CSR (available, talking,
on-break) and how long they have been in that particular status. The screen also
shows the supervisor performance levels for each CSR and the group as a whole.
The display also shows average call handling time, cumulative unavailable time
and number of calls handled by each agent. For the group, it shows the ASA, Max
Queue Delay, and Number of People in Queue and Service Level. Additional options
may be developed for unique requirements.
The Facility will have a SONET ring connection with a redundant self-healing
fiber optic telecommunications circuit, connected in two different points to the
Telco central offices. Power redundancy will be handled by an uninterruptible
power source (UPS) that will provide backup power in the event of an outage from
the local power company, American Electric Power. The CALLTECH center at
Columbus' German Village will be connected to the Facility via SONET ring
reducing the possibility of loss of service in the event of a major
telecommunications or power outage.
-2-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SCHEDULE E
----------
CALL-HANDLING REQUIREMENTS
--------------------------
SERVICE LEVELS:
So long as PRICELINE dictates the number of agents to be on
duty handling incoming customer calls, PRICELINE will assume
responsibility for managing service levels. The agree upon
target is at least 80% of all calls will be answered within
thirty (30) seconds.
So long as PRICELINE dictates the number of agents to be on
duty, PRICELINE agrees to manage staffing levels such that
100% of the E-mail Contacts referred by PRICELINE will be
answered within 24 hours of CALLTECH's receipt. In the
situation where CALLTECH is managing staff levels, CALLTECH
agrees to answer 100% of the E-mail Contacts referred by
PRICELINE within 24 hours of CALLTECH's receipt. E-mail
response can be defined in three ways: 1) full response and
closure; 2) response back requesting more information from
the Customer to assist in clarifying the problem or to
assist in the resolution of the problem; and 3) response
stating that CALLTECH is researching the problem and will
get back to the Customer by the end of the next business day
(provided that CALLTECH does in fact get back to the
Customer within such time frame).
CALL LENGTH: The parties mutually anticipate an Average Actual Handling
Time ("AAHT") of eight (8) minutes per call. If the average
exceeds such number of minutes for any monthly billing
period, CALLTECH will promptly notify PRICELINE and
cooperate with PRICELINE in adopting measures reasonably
calculated to reduce such average without requiring material
additional expenses to be incurred by CALLTECH. If the AAHT
begins to exceed such maximum number of minutes, or if the
adoption of PRICELINE's Contact management system results in
a material, measurable increase in AAHT when compared to
CALLTECH's existing Contact management system, and the
parties are unable to mutually agree on measures reasonably
calculated to reduce such average or on a revised maximum
AAHT for the purposes of this
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
Section, then either party may terminate this Agreement
(without payment of any early termination fees or other
liability to the other party) upon at least ninety (90) days
written notice to the other party.
ABANDON RATE: CALLTECH agrees that the abandon rate shall not exceed 3% of
total Inbound Calls, measured daily. So long as PRICELINE
dictates the number of agents to be on duty handling
incoming customer calls, PRICELINE will assume
responsibility for managing to this service level.
PTR COMPLETION: The parties mutually anticipate that CALLTECH shall sign
up at least 25% of the Customers using the Toll-Free Number
to make PTR's, as measured on a monthly basis commencing
with the Teleservices Launch Date. The parties agree to
renegotiate this expected level of service should the
expected PTR completion rate prove to be unreasonable.
-2-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
SCHEDULE F
----------
CALLTECH FEES
-------------
Unless otherwise specified, the fees set forth below apply to both the Inbound
Teleservices and the Telemarketing Services.
o TRAINING: $150 per day (defined as seven (7) hours)
per CSR
CALLTECH will credit back to PRICELINE the aggregate amount of the
training fee for each CSR who terminates in the first two (2) weeks of
service following completion of the training program provided such
termination is not due to the lack of call volume.
CALLTECH will reduce the training fee by 50% for each CSR who terminates
in week three (3) following completion of their training program.
CALLTECH will provide PRICELINE with detailed reports of training rosters
and retention.
o CALL FEES FOR SERVICES: 1. Fixed fee of $25.00 per CSR hour for the
first thirty (30) days following the
Telemarketing Launch Date.
Thereafter, $27.00 per CSR hour
or
Variable Rate Minute Structure as follows:
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
MINUTES TALK + WRAP FEE / MINUTE
------------------- ------------
0 - 50,000 $.70
50,001 - 100,000 $.65
100,001 - 200,000 $.60
200,000 - 300,000 $.57
300,000 + $.55
The above per minute rates will be determined on an aggregated basis as
of the end of the last day of each month during the term of the
Agreement. After the first thirty (30) days following the Telemarketing
Launch Date, all call fees shall initially be the $27.00 hourly CSR agent
fee set forth above. PRICELINE, however, shall have the one-time option,
at any time during the Term of this Agreement (but at no time during the
thirty (30) days following the Telemarketing Launch Date), to convert to
payment as per the Variable Rate Minute structure set forth above by
providing written notice of such election to CALLTECH. Any such notice
shall be effective on the first day of the next month following
CALLTECH's receipt of such notice.
o VRU FEES: MINUTES PER MONTH FEE / MINUTE
----------------- ------------
-2-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
0 - 50,000 $.15
50,001 - 100,00 $.14
100,001 - 150,000 $.13
150,001 - 200,000 $.12
200,001 - 250,000 $.11
250,000 + $.10
o E-MAIL: .50 cents per minute of CSR time
o IMPLEMENTATION FEE: $5,000 one time charge. CALLTECH
acknowledges its prior receipt of the
implementation fee from PRICELINE.
-3-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
The implementation fee will be credited back to PRICELINE if the call
volume (talk + wrap) in the 60-90 day period following the Launch date
exceeds 30,000 minutes in the aggregate.
o MONTHLY MINIMUM: $5,000 per month for all call fees, VRU
fees, E-mail fees and additional
development fees discussed below.
o ADDITIONAL DEVELOPMENT: $100 per hour for programmer/analyst
time for systems, programs or
applications development requested after
implementation.
OFFICE SPACE $200 per month includes office space
at CALLTECH's ArlingGate facility and
access to the Internet. Outbound long
distance will be passed across
PRICELINE's T1 facilities.
-4-
PRIVATE/PROPRIETARY
-------------------
CONTAINS PRIVATE AND/OR PROPRIETARY INFORMATION. MAY NOT BE USED OR
DISCLOSED OUTSIDE PRICELINE.COM LLC AND CALLTECH COMMUNICATIONS,
INCORPORATED EXCEPT PURSUANT TO A WRITTEN AGREEMENT
<PAGE>
ADDENDUM NO. 1 TO THE PRICELINE.COM/CALLTECH MASTER AGREEMENT
-------------------------------------------------------------
This Addendum No.1 (this "Addendum"), dated as of October __, 1998, modifies the
Master Agreement between priceline.com Incorporated and CallTech Communications,
Incorporated dated April 6, 1998 (the "Master Agreement"). All defined terms
used in this Addendum but not defined herein shall have the meanings set forth
in the Master Agreement. This Addendum shall supersede all provisions and terms
of the Master Agreement that are inconsistent or conflict with, or are otherwise
contrary to, any provision or term of this Addendum. For good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agree that the Master Agreement amended as follows:
1. PRICELINE CONVERSION:
CallTech acknowledges and agrees that all references to "priceline.com LLC
" or "priceline" in the Master Agreement shall, from and after July 31,
1998, mean and refer to priceline.com Incorporated, a Delaware corporation
and the successor in interest by merger to priceline.com LLC.
2. SCHEDULE F - CALLTECH FEES AND RELATED CHARGES:
CallTech acknowledges that priceline.com exercised its option set forth on
Schedule F to the Master Agreement to covert its payment obligations to
CallTech to the Variable Rate Minute Structure identified on Schedule F.
Such conversion was effective as of August 1, 1998.
The parties acknowledge and agree that the VRU and Network Prompter fees
set forth in Schedule F have been modified to $ .06 per minute effective
August 1, 1998. Such fees as modified shall remain in full force and effect
so long as priceline.com continues utilizing CallTech for all currently
operational VRU and Network Prompter services installed at CallTech.
Effective as of the date of this Addendum, the CSR training fees set forth
in Schedule F are hereby modified to include an option whereby CallTech
will charge priceline.com $100 for each seven hour training day per CSR
provided that the training is provided by priceline.com personnel. CallTech
shall provide priceline.com detailed reports of training rosters, and a
report of retention with each training invoice.
Effective as of the date of this Addendum, office space fees at CallTech's
current facility will be deemed included on Schedule F and will be
available (at priceline.com's option) and charged to priceline.com at the
rate of $200 per month per office, or at a fixed fee to be agreed upon by
the parties. Any lease by priceline.com of space at CallTech's current
facility may be terminated immediately and at any time by notice from
priceline.com to CallTech. Priceline.com has committed to lease 890 square
feet at a fixed rate of $1300 per month in CallTech's new Hilliard
facility, scheduled to open on approximately January 1, 1999 (the "New
<PAGE>
CallTech Facility"). Priceline.com may terminate its lease of space at the
New CallTech Facility at any time upon 60 days prior notice to CallTech.
3. CUSTOMER SERVICE SALARY:
Effective as of the date of this Addendum, CallTech agrees to compensate
each of its CSRs one additional dollar more than the standard priceline.com
wage rate for agents, per labor hour worked, as an incentive to attract
highly qualified individuals. In turn, priceline.com agrees to compensate
CallTech an additional 2.6 cents per CSR labor minute over the standard
rate to cover the salary increases paid to CallTech CSRs.
4. VISA BONUS PROGRAM:
To increase the rate of successful Visa credit card conversions by CallTech
CSRs, priceline.com and CallTech will negotiate in good faith on terms and
conditions for a CSR Visa conversion incentive program. The cost of such
program shall be paid for by priceline.com.
5. DISASTER PREVENTION:
CallTech will use best efforts to ensure a safe and reliable call center,
including providing an uninterruptible power source (UPS) for power backup,
a diesel generator for additional power backup, and a backup call center
site to be selected by CallTech and operational as soon as possible (but no
later than January 31, 1999).
Should priceline.com experience repeated and/or significant disruptions in
service for any reason related to failures on the part of CallTech,
CallTech agrees to remedy these disruptions within sixty days of written
notice from priceline.com.
6. YEAR 2000:
CallTech will use best efforts to ensure the software used in conjunction
with providing services to priceline.com will correctly handle the change
of the century in a standard and compliant manner.
Should such software fail due to changes in the calendar date from December
31, 1999 to January 1, 2000, CallTech will mobilize all necessary and
appropriate resources to rectify the problem in a timely manner at no
additional cost to priceline.com.
7. QUALITY ASSURANCE:
CallTech will provide regular recorded monitoring on audiocassette at least
three calls per CSR per week. CallTech will grade the first three completed
calls taped for each CSR using a QA monitoring form developed by
priceline.com. CallTech agrees to provide a weekly and monthly QA report
documenting the CSR QA scores and coaching notes. Recorded phone calls will
be graded by an equal number of CallTech and priceline.com employees. The
average grade for all phone calls in a monthly period shall not fall below
85%. Should this goal not be met, CallTech will work with priceline.com to
arrive at a mutually agreed upon solution within thirty days of
<PAGE>
written notice from priceline.com. Such process will be modified as
reasonably deemed appropriate by priceline.com.
8. SERVICE LEVEL AGREEMENT AND SCHEDULE E:
The service level target for Operator Service and Customer Service as set
forth in Schedule F to the Master Agreement shall continue to be as
follows: 80% of all inbound calls during each monthly period will be
answered within 30 seconds. Should this goal not be met, CallTech will work
with priceline.com to arrive at a mutually agreed upon solution within
thirty days of written notice from priceline.com.
In addition, priceline.com agrees to provide CallTech with a rolling
sixty-day call projection for each major inbound priceline.com
telemarketing program at CallTech. Should the actual number of calls vary
by greater than 10% of this forecast, the parties will negotiate in good
faith on a new service level target.
As a result of the transfer to the Variable Rate Minute Structure set forth
in Section 2 of this Addendum, CallTech will manage CSR staffing levels
effective August 1, 1998.
9. HOURS OF OPERATION:
Effective as of the date of this Addendum, Section 1.3 of the Master
Agreement is hereby modified to reflect CallTech`s agreement to provide
Teleservices to priceline.com during all hours requested by priceline.com
so long as priceline.com provides CallTech with reasonable notice of
changes to the normal operating hours.
10. PAYMENT:
Effective as of the date of this Addendum, Section 4.2 of the Master
Agreement is hereby modified to require CallTech to deliver to
priceline.com invoices bimonthly through the 15th and last day of each
month during the Term. Priceline.com will pay net 14 days from the date of
each invoice.
THE PARTIES AGREE AND SIGN THIS ADDENDUM AS OF THE DATE SET FORTH ON THE
FIRST PAGE OF THIS ADDENDUM. EXCEPT AS OTHERWISE AMENDED OR MODIFIED BY
THIS ADDENDUM, ALL OTHER TERMS AND PROVISIONS OF THE MASTER AGREEMENT SHALL
REMAIN IN FULL FORCE AND EFFECT.
CALLTECH COMMUNICATIONS, INC. PRICELINE.COM INCORPORATED
BY: BY:
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NAME: NAME:
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TITLE: TITLE:
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DATE: DATE:
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