Services Agreement [Schedule C] - Morgan Stanley Dean Witter & Co. and International Business Machines Corp.
SCHEDULE C Charges 1. INTRODUCTION ........................................................................................... 1 2. DEFINITIONS ............................................................................................ 1 2.1 Certain Definitions. ................................................................................ 1 2.2 Other Terms. ........................................................................................ 4 3. INDIVIDUAL SERVICE ELEMENTS AND RESOURCE UNIT DEFINITION ............................................... 4 3.1 IPSS Services ISEs. ................................................................................. 4 3.2 Data Network Services ISEs. ......................................................................... 8 3.3 Voice Services ISEs. ................................................................................ 8 4. IPSS SERVICES PRICING METHODOLOGY ...................................................................... 9 4.1 IPSS Annual Baseline Volumes. ....................................................................... 9 4.2 Annual Service Charge and Monthly Service Charge. ................................................... 9 4.3 Additional Resource Charges and Reduced Resource Credits. .......................................... 10 5. DATA NETWORK SERVICES PRICING METHODOLOGY ............................................................. 11 6. VOICE SERVICES PRICING METHODOLOGY .................................................................... 12 7. OTHER CHARGES AND CREDITS ............................................................................. 12 7.1 SSA Charges. ....................................................................................... 12 7.2 { * }. ............................................................................................. 12 7.3 Customer Surplus Adjustment Credit. ................................................................ 13 7.4 Cost of Living Adjustment. ......................................................................... 14 7.5 Special Print Forms. ............................................................................... 14 7.6 New Services Commitment. ........................................................................... 14 8. MINIMUM ANNUAL REVENUE COMMITMENT ..................................................................... 15 8.1 MSDW Aggregate Spending and the MARC. .............................................................. 15 8.2 Revenue Adjustment. ................................................................................ 16 9. TERMINATION FOR CONVENIENCE CHARGES ................................................................... 16 10. TECHNOLOGY TRANSFER ................................................................................... 17 11. PERSONNEL RESOURCES AND RATES ......................................................................... 17 ATTACHMENT C-1: IPSS Annual Baseline Volumes by Individual Service Element ............................. C1 - 1 -------------- ATTACHMENT C-2: IPSS Services ARCs and RRCs ............................................................ C2 - 1 -------------- ATTACHMENT C-3: Data Network Services ISEs, Resource Units and Resource Unit Pricing ................... C3 - 1 -------------- ATTACHMENT C-4: Personnel Resource Categories .......................................................... C4 - 1 -------------- ATTACHMENT C-5: Example of Calculation of ARCs and RRCs ................................................ C5 - 1 -------------- ________________________________________________________________________________ Schedule C to Services Agreement C-i MSDW/IBM Confidential Final Execution Copy <PAGE> 1. INTRODUCTION This Schedule C describes the methodologies for calculating the charges under the Agreement. The charges described in this Schedule C, and any other charges expressly set forth in the Agreement, shall compensate IBM for all resources used to provide the Services. In addition, this Schedule describes the measures of resource utilization and the tracking of such usage. 2. DEFINITIONS 2.1 Certain Definitions. ------------------- As used in this Schedule C: (a) "Additional Resource Charge" or "ARC" shall have the meaning set forth in Section 4.3(a) of this Schedule C. (b) "Annual Service Charge" or "ASC" shall have the meaning set forth in Section 4.2 of this Schedule C. (c) "ARC Deadband" shall have the meaning set forth in Section 4.3(a) of this Schedule C. (d) "Class A Work" shall mean processing work for which MSDW elects to receive a level of service in which CPU address space corresponding to such work receives host processing resources (including CPU time, memory and I/O) on a first-priority basis before CPU address space corresponding to Class B Work or Class C Work that simultaneously require such resources. (e) "Class B Work" shall mean processing work for which MSDW elects to receive a level of service in which CPU address space corresponding to such work receives host processing resources (including CPU time, memory and I/O) on a second-priority basis before CPU address space corresponding to Class C Work that simultaneously requests such resources, but after CPU address space corresponding to Class A Work that simultaneously require such resources. (f) "Class C Work" shall mean processing work for which MSDW elects to receive a level of service in which CPU address space corresponding to such work receives host processing resources (including CPU time, memory and I/O) on a third-priority basis after CPU address space corresponding to Class A Work or Class B Work that simultaneously require such resources. (g) "COLA" shall have the meaning set forth in Section 12.6 of the Agreement. (h) "CPU Second" shall mean, with respect to any mainframe CPU host used to provide IPSS Services, the quantity of CPU processing time (i.e., task control blocks plus service request blocks) on such host that is equivalent after normalization (using the applicable SRM constant below) to one (1) single image, single processing second approximating an IBM 370/158-3 CPU host with an assumed processor speed of one (1) MIPS. The system resource ________________________________________________________________________________ Schedule C to Services Agreement C-1 MSDW/IBM Confidential Final Execution Copy <PAGE> manager ("SRM") constants used to calculate CPU Seconds for the host Equipment shall be as follows: ------------------------------------------------------------------------------------------ Table C-1 ------------------------------------------------------------------------------------------ Host/1/ SRM Constant ------------------------------------------------------------------------------------------ { * } { * } ------------------------------------------------------------------------------------------ { * } { * } ------------------------------------------------------------------------------------------ { * } { * } ------------------------------------------------------------------------------------------ { * } { * } ------------------------------------------------------------------------------------------ { * } { * } ------------------------------------------------------------------------------------------ { * } { * } ------------------------------------------------------------------------------------------ /1/ Prior to utilizing a mainframe host processor other than any of those set forth in this table C-1, IBM shall propose the corresponding applicable SRM constant and obtain MSDW's verification that the IBM-proposed constant is in fact the applicable SRM constant. Upon the request of MSDW, IBM shall provide MSDW with the SRM constants, formulas, methodology and other information utilized by IBM to perform CPU Second normalizations. /2/ Notwithstanding this SRM constant, IBM shall utilize the constant { * } in lieu of this SRM constant of { * } for performing CPU Second normalizations in order to account for certain charging attributes existing as of the Effective Date with respect to { * }. ------------------------------------------------------------------------------------------ (i) "DASD Class of Service", and the terms "DASD Permanent", "DASD Work", "DASD ML1" and "DASD ML2" shall have the meanings given such terms in Schedule A. (j) "Individual Service Element" or "ISE" shall mean any of the Resource Unit categories used to calculate the charges for the Services under this Schedule C. The ISEs are described in Article 3 of this Schedule C. (k) "International Agreement" shall have the meaning set forth in Section 2.1 of the Agreement. (l) "IPSS Annual Baseline Volumes" shall have the meaning set forth in Section 3.2 of this Schedule C. (m) "IPSS Monthly Baseline Volumes" shall mean the allocation, by calendar month, of the IPSS Annual Baseline Volumes for any calendar year determined pursuant to Section 4.2 of this Schedule C. (n) "Minimum Annual Revenue Commitment" shall have the meaning set forth in Section 8.1(b) of this Schedule C. (o) "Monthly Service Charge" shall have the meaning set forth in Section 4.2 of this Schedule C. (p) "MSDW Aggregate Spending" shall have the meaning set forth in Section 8.1(a) of this Schedule C. (q) "Non-Prime Time" shall mean all time that is not Prime Time. (r) "Pass-Through Expenses" shall mean the aggregate of those Out-of-Pocket Expenses incurred by IBM for which MSDW is obligated to reimburse IBM ________________________________________________________________________________ Schedule C to Services Agreement C-2 MSDW/IBM Confidential Final Execution Copy <PAGE> pursuant to Section 3.2(b)(iii) or Section 11.2 of the Agreement, or as otherwise mutually agreed by the Parties. (s) "Prime Time" shall mean the time between 9:00 a.m. and 6:00 p.m. Eastern Time on Mondays through Fridays, including holidays. (t) "Recovery Class of Service", and the terms "Class 1", "Class 2", "Class 3", and "Class 4", shall have the meanings given such terms in Schedule A. (u) "Reduced Resource Credit" or "RRC" shall have the meaning set forth in Section 4.3(b) of this Schedule C. (v) "Resource Unit" for any ISE shall mean the unit of chargeable resource utilization for such ISE. Resource Units for the ISEs are described in Article 3 of this Schedule C. (w) "RRC Deadband" shall have the meaning set forth in Section 4.3(b) of this Schedule C. (x) "SSA" shall have the meaning set forth in Section 2.1 of the Agreement. (y) "Systems Overhead" shall mean: (i) With respect to the CPU utilization ISEs described in Section 3.1(a) of this Schedule C, Resource Units: (A) Used for the overhead work required to manage, monitor, support or maintain online transaction managers, or database management systems; (B) Used for network operating systems, system managed storage products, production scheduling, tape management, automated operations, output delivery tools or hardware error reading; (C) Used for non-MSDW resource utilization measurement collection; (D) Attributable to Applications Software that is IBM Software used for IBM's internal work, including those Resource Units used by IBM to perform IBM billing functions; (E) Attributable to CPU wait time or CPU uncaptured time; or (F) Necessary to perform system level work, such as system operations, support and administrative personnel usage. (ii) With respect to the DASD utilization ISEs described in Section 3.1(b) of this Schedule C, Resource Units used for System Overhead functions described in Subsection (i) of this Subsection (y), or Resource Units used to perform system level work, such as: ________________________________________________________________________________ Schedule C to Services Agreement C-3 MSDW/IBM Confidential Final Execution Copy <PAGE> (A) Spare volumes; (B) Unallocated (free) space; (C) System product libraries; (D) System space (e.g., page and swap space, system parameter and control data sets and error analysis space); (E) Systems operations personnel data sets; (F) System operation, support and administration data sets (e.g., scheduler, system maintenance and error analysis, DLIBS, console logs, contract measurement and billing, system monitors and system service machine space); or (G) system product libraries, page space, catalogs, system parameter and control datasets, system maintenance and DLIB volumes, system management databases, scheduler databases, contract measurement and billing (including SMF), console logs, IBM employee datasets, and system programmer test systems. 2.2 Other Terms. ----------- Capitalized terms not defined in this Schedule C shall have the meaning given them elsewhere in the Agreement. 3. INDIVIDUAL SERVICE ELEMENTS AND RESOURCE UNIT DEFINITION This Article 3 describes the various ISEs and Resource Units used to calculate the charges for the Services. 3.1 IPSS Services ISEs. ------------------ (a) CPU Utilization ISEs. -------------------- (i) CPU Non-Prime Class A. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated work during Non-Prime Time hours for Class A Work, excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (ii) CPU Non-Prime Class B. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated work during Non-Prime Time hours for Class B Work, excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. ________________________________________________________________________________ Schedule C to Services Agreement C-4 MSDW/IBM Confidential Final Execution Copy <PAGE> (iii) CPU Non-Prime Class C. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated work during Non-Prime Time hours for Class C Work, excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (iv) CPU Prime Class A. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated work during Prime Time hours for Class A Work, excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (v) CPU Prime Class B. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated work during Prime Time hours for Class B Work, excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (vi) CPU Prime Class C. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated work during Prime Time hours for Class C Work, excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (b) DASD Utilization ISEs. --------------------- (i) DASD ML1. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD ML1" DASD Class of Service usage (as defined in Schedule A) for MSDW data storage, excluding Systems Overhead (based on original data set size uncompressed). (ii) DASD ML2. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD ML2" DASD Class of Service usage (as defined in Schedule A) for MSDW data storage, excluding Systems Overhead (based on original data set size uncompressed). (iii) DASD Perm. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD Permanent" DASD Class of Service usage (as defined in Schedule A) for MSDW storage, excluding Systems Overhead. (iv) DASD Work. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD Work" DASD Class of Service usage (as defined in Schedule A) for MSDW data storage, excluding Systems Overhead. DASD Work Resource Unit usage shall be measured in megabyte-minutes but reported in equivalent megabyte-days. -------------------------------------------------------------------------------- Schedule C to Services Agreement MSDW/IBM Confidential C-5 Final Execution Copy <PAGE> (c) Tape Utilization ISEs. --------------------- (i) Tape Allocation. One (1) Resource Unit for this ISE shall equal one (1) minute of tape drive allocation dedicated to MSDW access. (ii) Tape Mounts. One (1) Resource Unit for this ISE shall equal one (1) scratch or specific tape mount provided manually, using automated tape mount handling or through large tape library systems, each in response to a mount request initiated by MSDW. (d) Print ISEs. ---------- (i) Print Local. One (1) Resource Unit for this ISE shall equal one thousand (1,000) lines of print output, initiated by MSDW, for which delivery of the data corresponding to such printing as well as actual printing is managed by IBM. (ii) Print Remote. One (1) Resource Unit for this ISE shall equal one thousand (1,000) lines of print output, initiated by MSDW, for which delivery of the data corresponding to such printing, but not actual printing, is managed by IBM. (e) Microfiche ISEs. --------------- (i) Fiche C (copy). One (1) Resource Unit for this ISE shall equal one (1) sheet of microfiche film, requested by MSDW, that is a copy of a sheet of original microfiche film utilized for MSDW data. (ii) Fiche O (original). One (1) Resource Unit for this ISE shall equal one (1) sheet of microfiche film, requested by MSDW, that is an original microfiche film utilized for MSDW data. (f) Disaster Recovery. ----------------- (i) DR CPU Class A1. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated Class A Work for which MSDW has designated a Recovery Class of Service of "Class 1", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (ii) DR CPU Class A2. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated Class A Work for which MSDW has designated a Recovery Class of Service of "Class 2", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. -------------------------------------------------------------------------------- Schedule C to Services Agreement MSDW/IBM Confidential C-6 Final Execution Copy <PAGE> (iii) DR CPU Class A4. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated Class A Work for which MSDW has designated a Recovery Class of Service of "Class 4", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (iv) DR CPU Class B1. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated Class B Work for which MSDW has designated a Recovery Class of Service of "Class 1", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (v) DR CPU Class B2. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated Class B Work for which MSDW has designated a Recovery Class of Service of "Class 2", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (vi) DR CPU Class B4. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated Class B Work for which MSDW has designated a Recovery Class of Service of "Class 4", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (vii) DR CPU Class C1. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated Class C Work for which MSDW has designated a Recovery Class of Service of "Class 1", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (viii) DR CPU Class C2. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated Class C Work for which MSDW has designated a Recovery Class of Service of "Class 2", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (ix) DR CPU Class C4. One (1) Resource Unit for this ISE shall be equal to one (1) CPU Second that is utilized by MSDW for MSDW-initiated -------------------------------------------------------------------------------- Schedule C to Services Agreement MSDW/IBM Confidential C-7 Final Execution Copy <PAGE> Class C Work for which MSDW has designated a Recovery Class of Service of "Class 4", excluding any Systems Overhead, as measured by SMF job start, job end and interval records to a precision of two (2) decimal places, or comparable system tool that outputs consistent job information. (x) DR DASD Perm Class 1. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD Permanent" DASD Class of Service usage (as defined in Schedule A), excluding Systems Overhead, for MSDW storage of data for which MSDW has designated a Recovery Class of Service of "Class 1". (xi) DR DASD Perm Class 2. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD Permanent" DASD Class of Service usage (as defined in Schedule A), excluding Systems Overhead, for MSDW storage of data for which MSDW has designated a Recovery Class of Service of "Class 2". (xii) DR DASD Perm Class 4. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD Permanent" DASD Class of Service usage (as defined in Schedule A), excluding Systems Overhead, for MSDW storage of data for which MSDW has designated a Recovery Class of Service of "Class 4". (xiii) DR DASD Work Class 1. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD Work" DASD Class of Service usage (as defined in Schedule A), excluding Systems Overhead, for MSDW storage of data for which MSDW has designated a Recovery Class of Service of "Class 1". (xiv) DR DASD Work Class 2. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD Work" DASD Class of Service usage (as defined in Schedule A), excluding Systems Overhead, for MSDW storage of data for which MSDW has designated a Recovery Class of Service of "Class 2". (xv) DR DASD Work Class 4. One (1) Resource Unit for this ISE shall equal one (1) megabyte-day of "DASD Work" DASD Class of Service usage (as defined in Schedule A), excluding Systems Overhead, for MSDW storage of data for which MSDW has designated a Recovery Class of Service of "Class 4". 3.2 Data Network Services ISEs. -------------------------- Data Network Service ISEs, as well as the definitions of Resource Units applicable to such Services, are set forth in Attachment C-3 of this Schedule C. 3.3 Voice Services ISEs. ------------------- -------------------------------------------------------------------------------- Schedule C to Services Agreement MSDW/IBM Confidential C-8 Final Execution Copy <PAGE> Voice Service ISEs, as well as the definitions of Resource Units applicable to such Services, are set forth in exhibit 3 of the Previous Agreement. 4. IPSS Services Pricing Methodology 4.1 IPSS Annual Baseline Volumes. ---------------------------- MSDW's anticipated annual volumes of Resource Unit utilization for the ISEs described in Section 3.1 are set forth in Attachment C-1 to this Schedule C (such anticipated volumes the "IPSS Annual Baseline Volumes"). 4.2 Annual Service Charge and Monthly Service Charge. ------------------------------------------------ The "Annual Service Charge" or "ASC" for any calendar year shall mean the fixed charges applicable to IPSS Services given MSDW's utilization of the quantity of Resource Units included in the IPSS Annual Baseline Volumes for such calendar year for all IPSS ISEs described in Section 3.1 of this Schedule C. The Annual Service Charge for each calendar year of the Term is set forth in Table C-2 below; the applicable charge for 1999 represents the Annual Service Charge for the period between July 1, 1999 through December 31, 1999, and the applicable charge for 2005 represents the Annual Service charge for the period between January 1, 2005 through June 30, 2005. --------------------------------------------------------------------------------------------------- Table C-2 Calendar Year of Term --------------------------------------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 --------------------------------------------------------------------------------------------------- ASC (in millions)/1/ { * } { * } { * } { * } { * } { * } { * } --------------------------------------------------------------------------------------------------- /1/ Amounts set forth in this Table C-2 reflect credits totalling { * } corresonding to the obligations described in Section 7.6(a) of this Schedule C, but do not reflect any { * }. --------------------------------------------------------------------------------------------------- MSDW will pay IBM the Annual Service Charge for any calendar year in monthly installments (each such installment a "Monthly Service Charge"), as such Monthly Service Charge is calculated pursuant to this Section. Additional charges or credits may apply pursuant to the ARC and RRC methodology set forth in Section 4.3 of this Schedule C. The Monthly Service Charges shall be calculated as follows: (a) If MSDW provides IBM with a monthly allocation of the IPSS Annual Baseline Volumes for a calendar year on or before November 15th of the immediately preceding calendar year, then: (i) the "IPSS Monthly Baseline Volume" for each calendar month of the calendar year corresponding to the IPSS Annual Baseline Volumes shall mean the corresponding allocation of such IPSS Annual Baseline Volumes defined by MSDW for such month; and (ii) the Monthly Service Charge for each calendar month of the calendar year corresponding to the IPSS Annual Baseline Volumes shall be calculated as follows: Monthly Service Charge = { * }; where A = { * }; -------------------------------------------------------------------------------- Schedule C to Services Agreement MSDW/IBM Confidential C-9 Final Execution Copy <PAGE> B = { * }; and C = { * }. (b) If MSDW does not provide IBM with a monthly allocation of the IPSS Annual Baseline Volumes for a calendar year on or before { * } of the immediately preceding calendar year, then: (i) the "IPSS Monthly Baseline Volume" for each calendar month of the calendar year corresponding to the IPSS Annual Baseline Volumes shall mean the amount calculated as one-twelfth (1/12) of such IPSS Annual Baseline Volumes for such calendar year; and (ii) the Monthly Service Charge for each calendar month of the calendar year corresponding to the IPSS Annual Baseline Volumes shall be calculated as one-twelfth (1/12) of the Annual Service Charge for such calendar year. 4.3 Additional Resource Charges and Reduced Resource Credits. -------------------------------------------------------- IBM shall track the number of Resource Units actually utilized by MSDW during each calendar month of the Term for each IPSS Services ISE described in Section 3.1 of this Schedule C. IBM shall provide such information to MSDW with each monthly invoice. (a) Calculation of Additional Resource Charges: ------------------------------------------ If MSDW's actual utilization of Resource Units during any calendar month of the Term for an IPSS Services ISE described in Section 3.1 of this Schedule C is greater than (i) the quantity of Resource Units corresponding to the IPSS Monthly Baseline Volumes for such ISE for such calendar month, plus (ii) the ARC Deadband, then an additional resource charge ("ARC") shall be calculated for the calendar month for such IPSS Services ISE using the following formula: ARC = { * }; where A = { * }; B = { * }; C = { * }; D = { * }; V = { * }; Z = { * } (the "ARC Deadband"); R\1\ = { * }; R\2\ = { * }; ________________________________________________________________________________ Schedule C to Services Agreement C-10 MSDW/IBM Confidential Final Execution Copy <PAGE> R\3\ = { * }; and R\4\ = { * }. (b) Calculation of Reduced Resource Credits: --------------------------------------- If MSDW's actual utilization of Resource Units during any calendar month of the Term for an IPSS ISE described in Section 3.1 of this Schedule C is less than the number of Resource Units corresponding to the IPSS Monthly Baseline Volumes for such ISE for such calendar month, then a reduced resource credit ("RRC") for such calendar month shall be calculated for such IPSS Services ISE using the following formula: RRC = { * }; where A = { * }; B = { * }; C = { * }; R\1\ = { * }; and R\2\ = { * }. (c) { * } Reconciliation of ARCs and RRCs. ------------------------------------- The ARCs and RRCs calculated pursuant to this Section shall be netted each { * } of the Term for each ISE. The net charge or credit for each of the IPSS ISEs during such { * } shall then be aggregated and netted, and a single net charge or credit will be assessed and will appear on the invoice corresponding to the last { * } of such { * }. (d) Example of Calculation. ---------------------- Attachment C-5 of this Schedule C sets forth an example of the calculation of ARCs and RRCs. 5. DATA NETWORK SERVICES PRICING METHODOLOGY IBM shall track the number of Resource Units actually utilized by MSDW during each calendar month of the Term (unless Attachment C-3 of this Schedule C specifies an alternative measurement period, in which case that measurement period shall be used for tracking purposes) for each Data Network Services ISE. IBM shall provide such information to MSDW with the monthly invoice corresponding to such Resource Units. For each such Data Network Services ISE, the charge applicable to such ISE for any calendar month of the Term shall be calculated as the volume of Data Network Services Resource Units for such ISE consumed by MSDW during such calendar month times the Resource Unit rate corresponding to such ISE set forth in such Attachment C-3 of this Schedule C. The charge for Data Network Services provided during a ________________________________________________________________________________ Schedule C to Services Agreement C-11 MSDW/IBM Confidential Final Execution Copy <PAGE> calendar month shall be calculated as the aggregate of the charges applicable to all Data Network ISEs for such month. 6. VOICE SERVICES PRICING METHODOLOGY IBM shall track the number of Resource Units actually utilized by MSDW during each calendar month of the Term for each Voice Services ISE. IBM shall provide such information to MSDW with the monthly invoice corresponding to such Resource Units. For each such Voice Services ISE, the charge applicable to such ISE for any calendar month of the Term shall be calculated as the volume of Voice Services Resource Units for such ISE consumed by MSDW during such calendar month times the Resource Unit rate corresponding to such ISE set forth in exhibit 3 of the Previous Agreement. The charge for Voice Services provided during a calendar month shall be calculated as the aggregate of the charges applicable to all Voice Services ISEs for such month. 7. OTHER CHARGES AND CREDITS 7.1 SSA Charges. ----------- For each SSA listed in Schedule H, MSDW shall pay the periodic, fixed and usage charges corresponding to such SSA (as such charges are set forth in the corresponding SSA) for so long as such SSA remains effective. 7.2 { * }. (a) On or before { * } of the Term, IBM shall (i) calculate and identify the amount of { * } the aggregate of all actual net charges incurred and paid under the Agreement or Previous Agreement during the immediately preceding calendar year of the Term (including charges applicable to Voice Services but excluding Termination Charges, taxes and any Pass-Through Expenses incurred by MSDW during such preceding calendar year), and (ii) deliver the corresponding data used by IBM to calculate and determine { * }; provided, however, that the aggregate of all charges incurred under the Agreement or Previous Agreement during such immediately preceding calendar year is equal to or greater than the Minimum Annual Revenue Commitment for such year (as specified in Section 8.1(b) of this Schedule C). On or before February 22nd of each calendar year of the Term, IBM shall { * } corresponding to the immediately preceding calendar year. With respect to any disputed { * }, IBM shall { * } upon resolution of the underlying dispute. (b) Within sixty (60) days after expiration or termination of the Agreement, IBM shall (A) calculate and identify the amount of { * } the aggregate of all actual net charges incurred and paid under the Agreement or Previous Agreement during: (i) in the case of expiration, the period beginning January 1, 2005 and ending on the expiration of the Term; (ii) in the case of termination, the period beginning January 1 of the calendar year corresponding to the effective date of termination and ending on the ________________________________________________________________________________ Schedule C to Services Agreement C-12 MSDW/IBM Confidential Final Execution Copy <PAGE> effective date of termination (unless the termination occurs before February 22, in which case the applicable period shall be the calendar year preceding the calendar year in which termination occurs) (including charges applicable to Voice Services but excluding Termination Charges, taxes and any Pass-Through Expenses incurred by MSDW during such period), and (B) deliver the corresponding data used by IBM to calculate and determine { * }; provided, however, that in each case, the aggregate of all charges incurred under the Agreement during the applicable period specified in Subsections (i) and (ii) of this Subsection (b) is equal to or greater than the Minimum Annual Revenue Commitment for the calendar year in which expiration or termination occurs (or the preceding calendar year in the case of termination before February 22nd) (as such Minimum Annual Revenue Commitment is specified in Section 8.1(b) of this Schedule C). Within { * } after calculating and identifying the amount of { * }, IBM shall { * }. With respect to any disputed { * }, IBM shall { * } upon resolution of the underlying dispute. This Subsection (b) shall survive expiration of the Agreement. 7.3 Customer Surplus Adjustment Credit. ---------------------------------- The "Customer Surplus Adjustment" or "CSA" shall mean a credit available to MSDW that may only be used by MSDW to offset, in part or in whole, any Revenue Adjustments charged to MSDW pursuant to Section 8.2 of this Schedule C after the first Contract Year. (a) As of the Effective Date, the CSA shall be { * }. Thereafter, the CSA shall be { * } as follows: (i) Upon the first anniversary of the Effective Date, and upon each subsequent anniversary of the Effective Date thereafter during the Term, the CSA shall be { * }; and (ii) In addition to the foregoing, at the end of each calendar year of the Term, the CSA shall be { * } by an amount calculated as: { * }; where A = { * }; B = { * }; and K = { * }; provided, however, that the CSA shall only be adjusted pursuant to this Subsection (ii) if the quantity calculated as the CSA { * } pursuant to the above formula is { * }. (b) Upon MSDW's election to use all or any portion of the CSA, any Revenue Adjustment for which MSDW is responsible pursuant to Section 8.2 of this ________________________________________________________________________________ Schedule C to Services Agreement C-13 MSDW/IBM Confidential Final Execution Copy <PAGE> Schedule C and to which MSDW elects to apply such CSA shall be decreased by an amount equal to the CSA designated by MSDW for use, and the balance of the CSA shall be reduced accordingly by an equivalent amount. (c) Any unused CSA remaining at the end of any calendar year of the Term may be carried forward to the following calendar years of the Term. 7.4 Cost of Living Adjustment. ------------------------- COLA charges shall be calculated and applied pursuant to Section 12.6 of the Agreement. The "Identified Charges" to which the COLA methodology described in Section 12.6 shall apply are: (a) The Minimum Annual Revenue Commitment; (b) The Annual Service Charge; (c) The ARC and RRC rates set forth in Attachment C-2 of this Schedule C; and (d) The Data Network Services Resource Unit pricing set forth in Attachment C-3 of this Schedule C. 7.5 Special Print Forms. ------------------- MSDW shall have financial responsibility for the purchase of special forms used in conjunction with print Services. IBM will inventory and store these special forms as part of the IPSS Services. 7.6 New Services Commitment. ----------------------- (a) Subject to Subsection (b) of this Section: (i) During the Term, MSDW will purchase New Services such that, upon expiration of the Term, the aggregate charges paid to IBM for all New Services are equal to or greater than { * }; and (ii) To the extent that as of expiration of the Term, the aggregate of charges paid to IBM for such New Services is less than { * }, MSDW shall pay to IBM the difference between such { * } and the actual aggregate of all charges paid to IBM for such New Services during the Term. (b) In the event of a termination for cause by MSDW pursuant to Subsection 21.1(a) of the Agreement, or of a termination for convenience by MSDW pursuant to Subsection 21.2(a) of the Agreement, MSDW shall not be obligated to perform the obligations described in Subsections (a)(i) and (a)(ii) of this Section 7.6. ________________________________________________________________________________ Schedule C to Services Agreement C-14 MSDW/IBM Confidential Final Execution Copy <PAGE> 8. MINIMUM ANNUAL REVENUE COMMITMENT 8.1 MSDW Aggregate Spending and the MARC. ------------------------------------ For any calendar year of the Term, MSDW Aggregate Spending shall be equal to or greater than the Minimum Annual Revenue Commitment corresponding to such calendar year. (a) "MSDW Aggregate Spending" for any calendar year of the Term shall mean the aggregate of all charges incurred under the Agreement during such calendar year, including any such charges corresponding to: (i) The Annual Service Charge (as adjusted by ARCs and RRCs); (ii) Charges under any International Agreement; (iii) Charges corresponding to any personnel resources purchased by MSDW as described in Article 11 of this Schedule C; (iv) Charges under any SSA or NSA; or (v) Charges for New Services; provided, however, that MSDW Aggregate Spending shall not include any such charges corresponding to: (vi) Charges for Voice Services; (vii) Taxes for which MSDW is responsible pursuant to Section 12.3 of the Agreement; or (viii) Pass-Through Expenses (including those applicable to postage and mailing). (b) "Minimum Annual Revenue Commitment" or "MARC" for any calendar year of the Term shall mean the amount set forth in Table C-3 below that corresponds to such calendar year, as such amount is adjusted pursuant to the COLA methodology set forth in Section 12.6 of the Agreement. The applicable amount set forth in Table C-3 below for 1999 represents the MARC for the period between July 1, 1999 through December 31, 1999, and the applicable amount set forth in such table for 2005 represents the MARC for the period between January 1, 2005 through June 30, 2005. ----------------------------------------------------------------------------------- Table C-3 Calendar Year of Term ------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 ----------------------------------------------------------------------------------- MARC (in { * } { * } { * } { * } { * } { * } { * } millions) ----------------------------------------------------------------------------------- 8.2 Revenue Adjustment. ------------------ ________________________________________________________________________________ Schedule C to Services Agreement MSDW/IBM Confidential C-15 Final Execution Copy <PAGE> For any calendar year, if the MSDW Aggregate Spending for such calendar year is less than the Minimum Annual Revenue Commitment for such calendar year, then MSDW shall pay IBM a Revenue Adjustment for such year, calculated after the end of such year as follows: (a) If the MSDW Aggregate Spending for such calendar year is greater than or equal to{ * } of the Minimum Annual Revenue Commitment for such calendar year, then the applicable Revenue Adjustment shall be calculated as follows: Revenue Adjustment = { * }; where B = { * }; C = { * }; and D = { * }; provided, however, that in no event shall the Revenue Adjustment be greater than { * } of the quantity calculated as { * }. (b) If the MSDW Aggregate Spending for such calendar year is less than { * } of the Minimum Annual Revenue Commitment for such calendar year, then the applicable Revenue Adjustment shall be calculated as follows: Revenue Adjustment = { * }; where B = { * }; C = { * }; and D = { * }; provided, however, that (a) in no event shall the Revenue Adjustment be greater than { * } of the quantity calculated as { * }, and (b) if the value for { * } is less than { * } of the value for { * }, then MSDW may terminate the Agreement for convenience and without cause by paying to IBM on the initial effective date of termination (i.e., unextended pursuant to Section 21.4 of the Agreement) the applicable Termination Charge specified in Article 9 of this Schedule C. 9. TERMINATION FOR CONVENIENCE CHARGES In the event of termination of the Agreement for convenience pursuant to Section 21.2(a) of the Agreement, MSDW shall pay the termination charge calculated using the following formula (such charge the "Termination Charge"): Termination Charge = { * }; where A = { * }; B = { * }; ________________________________________________________________________________ Schedule C to Services Agreement MSDW/IBM Confidential C-16 Final Execution Copy <PAGE> C = { * }. ------------------------------------------------------------------------------------- Table C-4 Calendar Year of Effective Date of Termination ------------------------------------------------------------ 2001 2002 2003 2004 2005 ------------------------------------------------------------------------------------- Value for "A" or "B" { * } { * } { * } { * } { * } (in millions of dollars) ------------------------------------------------------------------------------------- 10. TECHNOLOGY TRANSFER If during the Term, MSDW requests IBM to move a service or function being performed by IBM from one technology platform to another (for example, to move processing from a mainframe environment to a midrange or distributed environment) so that IBM continues to provide the service or function but on a different technology platform, then, as applicable, the Annual Service Charge, IPSS Annual Baseline Volumes, and such other provisions of the Agreement as appropriate shall be equitably adjusted to reflect the movement from one technology platform to another. The equitable adjustment shall be performed so that MSDW obtains full economic credit for the services or functions being replaced (including, for example, direct costs, overhead costs or expenses, and allocable profit). 11. PERSONNEL RESOURCES AND RATES Upon MSDW's request for any of the personnel resources listed in Attachment C-4 of this Schedule C, IBM shall provide such resources at rates and terms to be mutually agreed upon by the Parties. Use of personnel resources invoiced under the Agreement (including any NSA) shall be considered Services under the Agreement and any amounts paid by MSDW for such personnel resources shall be included as part of: (a) MSDW Aggregate Spending, and contribute to MSDW's satisfaction of the Minimum Annual Revenue Commitment, in accordance with Sections 8.1 and 8.2 of this Schedule C; (b) "the aggregate of all charges incurred for Services", and contribute to the Customer Surplus Adjustment, in accordance with Section 7.3(a)(ii) of this Schedule C; and (c) "the aggregate of all actual net charges incurred and paid" for purposes of { * } of this Schedule C. ________________________________________________________________________________ Schedule C to Services Agreement MSDW/IBM Confidential C-17 Final Execution Copy <PAGE> ATTACHMENT C-1 IPSS Annual Baseline Volumes by Individual Service Element (in annual Resource Units) ---------------------------------------------------------------------------------------------------------------------------------- ISE IPSS Annual Baseline Volumes by ISE (in Resource Units by Calendar Year of Term) ---------------------------------------------------------------------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 ---------------------------------------------------------------------------------------------------------------------------------- CPU Non-Prime Class A { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- CPU Non-Prime Class B { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- CPU Non-Prime Class C { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- CPU Prime Class A { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- CPU Prime Class B { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- CPU Prime Class C { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- TOTAL CPU { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- DASD ML1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DASD ML2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DASD Perm { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DASD Work { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- Tape Allocation { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- Tape Mount { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- Print Local { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- Print Remote { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- Fiche C (copy) { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- Fiche O (original) { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class A1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class A2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class A4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ________________________________________________________________________________ Attachment C-1 to Schedule C MSDW/IBM Confidential of Services Agreement C1-1 Final Execution Copy <PAGE> ---------------------------------------------------------------------------------------------------------------------------------- ISE IPSS Annual Baseline Volumes by ISE (in Resource Units by Calendar Year of Term) ---------------------------------------------------------------------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ________________________________________________________________________________ Attachment C-1 to Schedule C MSDW/IBM Confidential of Services Agreement C1-2 Final Execution Copy <PAGE> ATTACHMENT C-2 IPSS Services ARCs and RRCs With respect to the ARC rates set forth in this Attachment C-2, the Tier 2 ARC rates reflect a { * } the corresponding Tier 1 ARC rates, the Tier 3 ARC rates reflect a { * } the corresponding Tier 1 ARC rates, and the Tier 4 ARC rates reflect a { * } the corresponding Tier 1 ARC rates. ------------------------------------------------------------------------------------------------------------------------------------ ISE IPSS Services Tier 1 ARC and RRC Rates ----------------------------------------------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 ------------------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class A { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class B { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class C { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Prime Class A { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Prime Class B { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Prime Class C { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ DASD ML1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DASD ML2 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DASD Perm { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DASD Work { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Tape Allocation { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ Tape Mount { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Print Local { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ Print Remote { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Fiche C (copy) { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ Fiche O (original) { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class A1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class A2 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class A4 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class B1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class B2 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class B4 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- Attachment C-2 to Schedule C of Services Agreement MSDW/IBM Confidential C2-1 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------------------ ISE IPSS Services Tier 1 ARC and RRC Rates ----------------------------------------------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class C1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class C2 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class C4 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ DR DASD Perm Class 1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR DASD Perm Class 2 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR DASD Perm Class 4 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR DASD Work Class 1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR DASD Work Class 2 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DR DASD Work Class 4 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ISE IPSS Services Tier 2 ARC and RRC Rates ----------------------------------------------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 ------------------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class A { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class B { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class C { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Prime Class A { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Prime Class B { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ CPU Prime Class C { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ DASD ML1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DASD ML2 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DASD Perm { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ DASD Work { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Tape Allocation { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ Tape Mount { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Print Local { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ Print Remote { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Fiche C (copy) { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ Fiche O (original) { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ DR CPU Class A1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- Attachment C-3 to Schedule C of Services Agreement MSDW/IBM Confidential C2-2 Final Execution Copy <PAGE> -------------------------------------------------------------------------------------------------------------------------------- IPSS Services Tier 2 ARC and RRC Rates ----------------------------------------------------------------------------------------------- ISE 1999 2000 2001 2002 2003 2004 2005 -------------------------------------------------------------------------------------------------------------------------------- DR CPU Class A2 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR CPU Class A4 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B1 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B2 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B4 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C1 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C2 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C4 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 1 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 2 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 4 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 1 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 2 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 4 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- IPSS Services Tier 3 ARC Rates ----------------------------------------------------------------------------------------------- ISE 1999 2000 2001 2002 2003 2004 2005 -------------------------------------------------------------------------------------------------------------------------------- CPU Non-Prime Class A { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- CPU Non-Prime Class B { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- CPU Non-Prime Class C { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- CPU Prime Class A { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- CPU Prime Class B { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- CPU Prime Class C { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- DASD ML1 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DASD ML2 { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DASD Perm { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- DASD Work { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- Tape Allocation { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- Tape Mount { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- Print Local { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- Print Remote { * } { * } { * } { * } { * } { * } { * } -------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-2 to Schedule C of Services Agreement MSDW/IBM Confidential Final Execution Copy C2-3 <PAGE> ----------------------------------------------------------------------------------------------------------------------- ISE IPSS Services Tier 3 ARC Rates ----------------------------------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- Fiche C (copy) { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- Fiche O (original) { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- DR CPU Class A1 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR CPU Class A2 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR CPU Class A4 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR CPU Class B1 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR CPU Class B2 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR CPU Class B4 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR CPU Class C1 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR CPU Class C2 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR CPU Class C4 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 1 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 2 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 4 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 1 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 2 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 4 { * } { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ ISE IPSS Services Tier 4 ARC Rates ------------------------------------------------------------------------------------------------ 1999 2000 2001 2002 2003 2004 2005 ------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class A { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class B { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ CPU Non-Prime Class C { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ CPU Prime Class A { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ CPU Prime Class B { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ CPU Prime Class C { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ DASD ML1 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ DASD ML2 { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ DASD Perm { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ DASD Work { * } { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- Attachment C-2 to Schedule C MSDW/IBM Confidential of Services Agreement C2-4 Final Execution Copy <PAGE> ---------------------------------------------------------------------------------------------------------------------------------- ISE IPSS Services Tier 4 ARC Rates ---------------------------------------------------------------------------------------------------------- 1999 2000 2001 2002 2003 2004 2005 ---------------------------------------------------------------------------------------------------------------------------------- Tape Allocation { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- Tape Mount { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- Print Local { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- Print Remote { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- Fiche C (copy) { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- Fiche O (original) { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class A1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class A2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class A4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class B4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR CPU Class C4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Perm Class 4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 1 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 2 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- DR DASD Work Class 4 { * } { * } { * } { * } { * } { * } { * } ---------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-2 to Schedule C MSDW/IBM Confidential of Services Agreement C2-5 Final Execution Copy <PAGE> ---------------------------------------------------------------------------------------------------------------------- Attachment C-3 Data Network Services ISEs, Resource Units and Resource Unit Pricing ---------------------------------------------------------------------------------------------------------------------- All ISEs marked with a "*" charged on a non-calendar monthly basis. ---------------------------------------------------------------------------------------------------------------------- SNA Dedicated Data Network Access, Installation and Deinstallation Services ---------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ------------------------------------------------------------------------------ Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ---------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } circuit less than or circuit equal to 56kbs (one-time charge) ---------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } circuit greater than circuit 56kbs (one-time charge) ---------------------------------------------------------------------------------------------------------------------- Installation for 56 installation per { * } { * } { * } { * } { * } { * } MDS and 56/14 SNA circuit (one-time charge) ---------------------------------------------------------------------------------------------------------------------- Expedited expedited { * } { * } { * } { * } { * } { * } Installation installation per surcharge circuit (one-time charge) ---------------------------------------------------------------------------------------------------------------------- Installation of SNBU installation per { * } { * } { * } { * } { * } { * } 2 Wire or SNBU 4 circuit Wire option (one-time charge) ---------------------------------------------------------------------------------------------------------------------- De-installation of installation per { * } { * } { * } { * } { * } { * } circuit circuit (one-time charge) ---------------------------------------------------------------------------------------------------------------------- 9.6kbs circuit* monthly usage { * } { * } { * } { * } { * } { * } per circuit ---------------------------------------------------------------------------------------------------------------------- 14.4kbs circuit* monthly usage { * } { * } { * } { * } { * } { * } per circuit ---------------------------------------------------------------------------------------------------------------------- 19.2kbs circuit* monthly usage { * } { * } { * } { * } { * } { * } per circuit ---------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SNA Dedicated Data Network Access Installation and Deinstallation Services -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement Final Execution Copy C3-1 <PAGE> ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- 56 kbs circuit* monthly usage { * } { * } { * } { * } { * } { * } per circuit ------------------------------------------------------------------------------------------------------------------------- SNBU 2 Wire option* monthly usage { * } { * } { * } { * } { * } { * } per circuit ------------------------------------------------------------------------------------------------------------------------- SNBU 4 Wire option* monthly usage { * } { * } { * } { * } { * } { * } per circuit ------------------------------------------------------------------------------------------------------------------------- SNI Gateway option monthly usage { * } { * } { * } { * } { * } { * } (for circuits less per circuit than 56 kbs)* ------------------------------------------------------------------------------------------------------------------------- SNI Gateway option monthly usage { * } { * } { * } { * } { * } { * } (for circuits equal per circuit to or greater than 56 kbs)* ------------------------------------------------------------------------------------------------------------------------- TCAM usage* monthly per copy { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- FIG or MIG platform* monthly usage { * } { * } { * } { * } { * } { * } per platform ------------------------------------------------------------------------------------------------------------------------- ICN Platform* monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- Physical Unit (PU) monthly usage { * } { * } { * } { * } { * } { * } usage (standard per PU configurations of 15 LUs to 1 PU)* ------------------------------------------------------------------------------------------------------------------------- Large Physical Unit monthly usage { * } { * } { * } { * } { * } { * } (PU) usage per PU (configurations of greater than 15 LUs to 1 PU)* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SNA Dedicated Data Network Access, Installation and Deinstallation Services -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement Final Execution Copy C3-2 <PAGE> --------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 --------------------------------------------------------------------------------------------------------------------------- High-Volume Site/1/, monthly usage { * } { * } { * } { * } { * } { * } /2/ (Discover - { * }) per High-Volume Site --------------------------------------------------------------------------------------------------------------------------- High-Volume Site/1/, monthly usage { * } { * } { * } { * } { * } { * } /2/ (Discover - { * }) per High-Volume Site --------------------------------------------------------------------------------------------------------------------------- High-Volume Site/1/, monthly usage { * } { * } { * } { * } { * } { * } /2/ (Discover - { * }) per High-Volume Site --------------------------------------------------------------------------------------------------------------------------- High-Volume Site/1/, monthly usage { * } { * } { * } { * } { * } { * } /2/ (Discover - { * }) per High-Volume Site --------------------------------------------------------------------------------------------------------------------------- High-Volume Site/1/ monthly usage { * } { * } { * } { * } { * } { * } (Novus Financial) per High-Volume Site --------------------------------------------------------------------------------------------------------------------------- High-Volume Sites/1/ monthly usage { * } { * } { * } { * } { * } { * } (PCG) for the High-Volume Sites --------------------------------------------------------------------------------------------------------------------------- /1/ Charges based upon configurations existing as of the Effective Date. --------------------------------------------------------------------------------------------------------------------------- /2/ Charges for 1999 are effective for July and August, 1999. Thereafter, monthly charges are described in SSA NOV22. --------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-3 Final Execution Copy <PAGE> --------------------------------------------------------------------------------------------------------------------------- MPN Dedicated Data Network Access, Installation and Deinstallation Services --------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 --------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 56kbs circuit circuit (one-time charge) --------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } circuit greater than circuit 56kbs (one-time charge) --------------------------------------------------------------------------------------------------------------------------- Conversion of conversion per { * } { * } { * } { * } { * } { * } circuit from 56kbs circuit capacity to higher (one-time charge) capacity or vice-versa --------------------------------------------------------------------------------------------------------------------------- Conversion of conversion per { * } { * } { * } { * } { * } { * } circuit from or to circuit capacity other than (one-time charge) 56kbs --------------------------------------------------------------------------------------------------------------------------- 56kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 2502 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 128kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 2502 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 128kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 4000m routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 128kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 4500 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 128kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 7010 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- MPN Dedicated Data Network Access, Installation and Deinstallation Services --------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-4 Final Execution Copy <PAGE> --------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 --------------------------------------------------------------------------------------------------------------------------- 128kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 7000 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 256kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 2502 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 256kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 4000m routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 256kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 4500 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 256kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 7010 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 256kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 7000 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 512kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 2502 routers* per circuit -------------------------------------------------------------------------------------------------------------------------- 512kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 4000m routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 512kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 4500 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 512kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 7010 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- MPN Dedicated Data Network Access, Installation and Deinstallation Services -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-5 Final Execution Copy <PAGE> --------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 --------------------------------------------------------------------------------------------------------------------------- 512kbs circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 7000 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- DS-1 circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 2502 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- DS-1 circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 4000m routers* per circuit --------------------------------------------------------------------------------------------------------------------------- DS-1 circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 4500 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- DS-1 circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 7010 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- DS-11 circuit using monthly usage { * } { * } { * } { * } { * } { * } Cisco 7000 routers* per circuit --------------------------------------------------------------------------------------------------------------------------- 56kbs circuit access monthly usage { * } { * } { * } { * } { * } { * } option* per circuit --------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 56kbs capacity circuit circuit access option (one-time charge) -------------------------------------------------------------------------------------------------------------------------- 128kbs capacity monthly usage { * } { * } { * } { * } { * } { * } circuit access per circuit option* --------------------------------------------------------------------------------------------------------------------------- 256kbs capacity monthly usage { * } { * } { * } { * } { * } { * } circuit access per circuit option* --------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- MPN Dedicated Data Network Access, Installation and Deinstallation Services -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-6 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- 512kbs capacity monthly usage { * } { * } { * } { * } { * } { * } circuit access per circuit option* ------------------------------------------------------------------------------------------------------------------------- DS-1 capacity monthly usage { * } { * } { * } { * } { * } { * } circuit access per circuit option* ------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } circuit greater than circuit 56kbs capacity (one-time charge) access option ------------------------------------------------------------------------------------------------------------------------- Netbios per config monthly usage { * } { * } { * } { * } { * } { * } option* per circuit ------------------------------------------------------------------------------------------------------------------------- SNA per config monthly usage { * } { * } { * } { * } { * } { * } option* per circuit ------------------------------------------------------------------------------------------------------------------------- IPX per config monthly usage { * } { * } { * } { * } { * } { * } option* per circuit ------------------------------------------------------------------------------------------------------------------------- SDLC/Serial Port monthly usage { * } { * } { * } { * } { * } { * } option * per circuit ------------------------------------------------------------------------------------------------------------------------- Token ring Port monthly usage { * } { * } { * } { * } { * } { * } option* per circuit ------------------------------------------------------------------------------------------------------------------------- Installation of SNDM Per copy or { * } { * } { * } { * } { * } { * } Software license ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-7 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Frame-Relay Dedicated Data Network Access Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 56kbs circuit circuit Managed Access (one-time charge) Connection Install ------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 128kbs circuit circuit (one-time charge) ------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 256kbs circuit circuit (one-time charge) ------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 384kbs circuit circuit (one-time charge) ------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 512kbs circuit circuit (one-time charge) ------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 768kbs circuit circuit (one-time charge) ------------------------------------------------------------------------------------------------------------------------- Installation of installation per { * } { * } { * } { * } { * } { * } 1544kbs circuit circuit (one-time charge) ------------------------------------------------------------------------------------------------------------------------- Installation of PVC installation per { * } { * } { * } { * } { * } { * } circuit (one-time charge) ------------------------------------------------------------------------------------------------------------------------- 56kbs Managed Access site month { * } { * } { * } { * } { * } { * } Connection* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-8 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Frame-Relay Dedicated Data Network Access Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- 128kbs Managed site month { * } { * } { * } { * } { * } { * } Access Connection* ------------------------------------------------------------------------------------------------------------------------- 256kbs Managed site month { * } { * } { * } { * } { * } { * } Access Connection* ------------------------------------------------------------------------------------------------------------------------- 384kbs Managed site month { * } { * } { * } { * } { * } { * } Access Connection* ------------------------------------------------------------------------------------------------------------------------- 512kbs Managed site month { * } { * } { * } { * } { * } { * } Access Connection* ------------------------------------------------------------------------------------------------------------------------- 768kbs Managed site month { * } { * } { * } { * } { * } { * } Access Connection* ------------------------------------------------------------------------------------------------------------------------- 1544kbs Managed site month { * } { * } { * } { * } { * } { * } Access Connection* ------------------------------------------------------------------------------------------------------------------------- IP Protocol* Managed Access { * } { * } { * } { * } { * } { * } Connection per month ------------------------------------------------------------------------------------------------------------------------- SNA Protocol* Managed Access { * } { * } { * } { * } { * } { * } Connection per month ------------------------------------------------------------------------------------------------------------------------- IPX Protocol* Managed Access { * } { * } { * } { * } { * } { * } Connection per month ------------------------------------------------------------------------------------------------------------------------- 4 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-9 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Frame-Relay Dedicated Data Network Access Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- 8 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 16 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 32 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 48 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 64 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 128 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 192 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 256 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-10 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Frame-Relay Dedicated Data Network Access Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- 320 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 384 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 448 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 512 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 576 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 640 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 704 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 768 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-11 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Frame-Relay Dedicated Data Network Access Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- 832 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 896 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 960 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 1024 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- 1544 kbs Committed site month { * } { * } { * } { * } { * } { * } Information Rate* ------------------------------------------------------------------------------------------------------------------------- Market Data PVC site month { * } { * } { * } { * } { * } { * } 64kbs Committed Information Rate* ------------------------------------------------------------------------------------------------------------------------- Market Data PVC site month { * } { * } { * } { * } { * } { * } 128kbs Committed Information Rate* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-12 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Frame-Relay Dedicated Data Network Access Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Market Data PVC site month { * } { * } { * } { * } { * } { * } 192kbs Committed Information Rate* ------------------------------------------------------------------------------------------------------------------------- Market Data PVC site month { * } { * } { * } { * } { * } { * } 256kbs Committed Information Rate* ------------------------------------------------------------------------------------------------------------------------- Market Data PVC site month { * } { * } { * } { * } { * } { * } 320kbs Committed Information Rate* ------------------------------------------------------------------------------------------------------------------------- Market Data PVC site month { * } { * } { * } { * } { * } { * } 384kbs Committed Information Rate* ------------------------------------------------------------------------------------------------------------------------- Market Data PVC site month { * } { * } { * } { * } { * } { * } 448kbs Committed Information Rate* ------------------------------------------------------------------------------------------------------------------------- Market Data PVC site month { * } { * } { * } { * } { * } { * } 512kbs Committed Information Rate* ------------------------------------------------------------------------------------------------------------------------- ________________________________________________________________________________ Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-13 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Switched Data Network Access Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- EDI Bisynchronous minute of { * } { * } { * } { * } { * } { * } connectivity connectivity ------------------------------------------------------------------------------------------------------------------------- EDI connectivity minute of { * } { * } { * } { * } { * } { * } connectivity ------------------------------------------------------------------------------------------------------------------------- EDI Asynchronous minute of { * } { * } { * } { * } { * } { * } connectivity connectivity ------------------------------------------------------------------------------------------------------------------------- Asynchronous local hour of { * } { * } { * } { * } { * } { * } dial-up per session connectivity via IBM Passport (8:00 a.m. through 8:00 p.m. local time)/1/ ------------------------------------------------------------------------------------------------------------------------- Asynchronous local hour of { * } { * } { * } { * } { * } { * } dial-up per session connectivity via IBM Passport (8:00 p.m. through 8:00 a.m. local time)/1/ ------------------------------------------------------------------------------------------------------------------------- Asynchronous hour of { * } { * } { * } { * } { * } { * } 800-number dial-up connectivity surcharge per session via IBM Passport (8:00 a.m. through 8:00 p.m. local time)/1/ ------------------------------------------------------------------------------------------------------------------------- ________________________________________________________________________________ Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-14 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Switched Data Network Access Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- Asynchronous hour of { * } { * } { * } { * } { * } { * } 800-number dial-up connectivity surcharge per session via IBM Passport (8:00 p.m. through 8:00 a.m. local time)/1/ ------------------------------------------------------------------------------------------------------------------------- SENDENSW SENDEN minute { * } { * } { * } { * } { * } { * } connect ------------------------------------------------------------------------------------------------------------------------- SENDENBT SENDEN usage per { * } { * } { * } { * } { * } { * } Kilocharacters ------------------------------------------------------------------------------------------------------------------------- MB Measured monthly { * } { * } { * } { * } { * } { * } Business Line* ------------------------------------------------------------------------------------------------------------------------- FFO Fixed Function monthly { * } { * } { * } { * } { * } { * } Terminal* ------------------------------------------------------------------------------------------------------------------------- /1/ Usage for such ISEs shall be billed in { * } increments, with { * } minimum usage per session. ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Managed Access Connection Surcharges ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- 256 kbs port speed* site month { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- 384 kbs port speed* site month { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- ________________________________________________________________________________ Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-15 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Managed Access Connection Surcharges ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- 512 kbs port speed* site month { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- 640 kbs port speed* site month { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- 768 kbs port speed* site month { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- 1024 kbs port speed* site month { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- 1544 kbs port speed* site month { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- EDI Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- EDI20025 Standard installation per { * } { * } { * } { * } { * } { * } Mailbox Installation mailbox (one-time charge) ------------------------------------------------------------------------------------------------------------------------- STEDI10 Bulk Store one-time charge { * } { * } { * } { * } { * } { * } and Forward Installation ------------------------------------------------------------------------------------------------------------------------- EDIINS add mailboxes installation per { * } { * } { * } { * } { * } { * } mailbox (one-time charge) ------------------------------------------------------------------------------------------------------------------------- SMBX Mailbox monthly usage { * } { * } { * } { * } { * } { * } per mailbox ------------------------------------------------------------------------------------------------------------------------- ________________________________________________________________________________ Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-16 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- EDI Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- STEDI2 Special monthly usage { * } { * } { * } { * } { * } { * } Mailbox per mailbox ------------------------------------------------------------------------------------------------------------------------- STEDI1 Special monthly usage { * } { * } { * } { * } { * } { * } Mailbox per mailbox ------------------------------------------------------------------------------------------------------------------------- PROCEDI usage per Kilocharacter { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PROCEML usage per Kilocharacter { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Bridge Charges ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- Monthly bridge monthly { * } { * } { * } { * } { * } { * } charge - Phoenix 16* ------------------------------------------------------------------------------------------------------------------------- Monthly bridge monthly { * } { * } { * } { * } { * } { * } charge - Hilliard 7* ------------------------------------------------------------------------------------------------------------------------- Monthly bridge monthly { * } { * } { * } { * } { * } { * } charge - Scottsdale 6* ------------------------------------------------------------------------------------------------------------------------- Monthly bridge to monthly { * } { * } { * } { * } { * } { * } Sandy Utah 2* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-17 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Transaction Pricing - Table 1 ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- If the aggregate number of transactions (not including MT minutes) processed during a calendar year under the Agreement or Previous Agreement is less than { * }, then the following charges set forth in this Table 1 shall apply to all such transactions; provided, however, that: (a) in no event shall the aggregate charges for such transactions exceed an amount equal to the sum of (i) the aggregate charges that would result if the charges for such transactions were calculated using the applicable pricing set forth in "Transaction Pricing - Table 2" below (including application of subsection (b) of the proviso), and (ii an amount equal to the product of (A) the applicable BTC11 charge in "Transaction Pricing - Table 2" below, and (B) the difference between { * } and the aggregate number of transactions processed during such calendar year; and (b) for the aggregate number of transactions (not including MT minutes) processed during 1999 under the Previous Agreement or the Agreement, the applicable charges shall be calculated as (i) the charges resulting from multiplying each of the rate tier levels set forth in the Previous Agreement (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * }, and applying the actual aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 to such modified rate tier levels, plus (ii) the charges resulting from multiplying each of the Transaction Pricing rate tier levels set forth in Transaction Pricing - Tables 1 through 7 of this Attachment C-3 (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * } and applying the actual aggregate number of transactions (not including MT minutes). For the purposes of Subsection (b) of this Table, the aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 shall include those transactions processed during such time for SPS. ----------------------------------------------------------------------------------------------------------------- BTC per transaction { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------- BTC3 per transaction { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------- BTC4 per transaction { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------- BTC5A per transaction { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------- BTC11 per transaction { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------- MT1 per minute { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------- MT2 per minute { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------- MT3 per minute { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Transaction Pricing - Table 2 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-18 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- If the aggregate number of transactions (not including MT minutes) processed during a calendar year under the Agreement or Previous Agreement is equal to or greater than { * } but less than { * }, then the following charges set forth in this Table 2 shall apply to all such transactions; provided, however, that: (a) in no event shall the aggregate charges for such transactions exceed an amount equal to the sum of (i) the aggregate charges that would result if the charges for such transactions were calculated using the applicable pricing set forth in "Transaction Pricing - Table 3" below (including application of Subsection (b) of the proviso), and (ii) an amount equal to the product of (A) the applicable BTC11 charge in "Transaction Pricing - Table 3" below, and (B) the difference between ( * } and the aggregate number of transactions processed during such calendar year; and (b) for the aggregate number of transactions (not including MT minutes) processed during 1999 under the Previous Agreement or the Agreement, the applicable charges shall be calculated as (i) the charges resulting from multiplying each of the rate tier levels set forth in the Previous Agreement (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * }, and applying the actual aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 to such modified rate tier levels, plus (ii) the charges resulting from multiplying each of the Transaction Pricing rate tier levels set forth in Transaction Pricing - Tables 1 through 7 of this Attachment C-3 (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * } and applying the actual aggregate number of transactions (not including MT minutes). For the purposes of Subsection (b) of this Table, the aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 shall include those transactions processed during such time for SPS. ------------------------------------------------------------------------------------------------------------------------- BTC per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC3 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC4 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC5A per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC11 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT1 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT2 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT3 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Transaction Pricing - Table 3 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3 - 19 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------- If the aggregate number of transactions (not including MT minutes) processed during a calendar year under the Agreement or Previous Agreement is equal to or greater than { * } but less than { * }, then the following charges set forth in this Table 3 shall apply to all such transactions; provided, however, that: (a) in no event shall the aggregate charges for such transactions exceed an amount equal to the sum of (i) the aggregate charges that would result if the charges for such transactions were calculated using the applicable pricing set forth in "Transaction Pricing - Table 4" below (including application of Subsection (b) of the proviso), and (ii) an amount equal to the product of (A) the applicable BTC11 charge in "Transaction Pricing - Table 4" below, and (B) the difference between { * } and the aggregate number of transactions processed during such calendar year; and (b) for the aggregate number of transactions (not including MT minutes) processed during 1999 under the Previous Agreement or the Agreement, the applicable charges shall be calculated as (i) the charges resulting from multiplying each of the rate tier levels set forth in the Previous Agreement (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * }, and applying the actual aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 to such modified rate tier levels, plus (ii) the charges resulting from multiplying each of the Transaction Pricing rate tier levels set forth in Transaction Pricing - Tables 1 through 7 of this Attachment C-3 (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * } and applying the actual aggregate number of transactions (not including MT minutes) p For the purposes of Subsection (b) of this Table, the aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 shall include those transactions processed during such time for SPS. ------------------------------------------------------------------------------------------------------------------------- BTC per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC3 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC4 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC5A per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC11 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT1 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT2 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT3 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Transaction Pricing - Table 4 -------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3 - 20 Final Execution Copy <PAGE> ------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- If the aggregate number of transactions (not including MT minutes) processed during a calendar year under the Agreement or Previous Agreement is equal to or greater than { * } but less than { * }, then the following charges set forth in this Table 4 shall apply to all such transactions; provided, however, that: (a) in no event shall the aggregate charges for such transactions exceed an amount equal to the sum of (i) the aggregate charges that would result if the charges for such transactions were calculated using the applicable pricing set forth in "Transaction Pricing - Table 5" below (including application of Subsection (b) of the proviso), and (ii) an amount equal to the product of (A) the applicable BTC11 charge in "Transaction Pricing - Table 5" below, and (B) the difference between { * } and the aggregate number of transactions processed during such calendar year; and (b) for the aggregate number of transactions (not including MT minutes) processed during 1999 under the Previous Agreement or the Agreement, the applicable charges shall be calculated as (i) the charges resulting from multiplying each of the rate tier levels set forth in the Previous Agreement (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * }, and applying the actual aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 to such modified rate tier levels, plus (ii) the charges resulting from multiplying each of the Transaction Pricing rate tier levels set forth in Transaction Pricing - Tables 1 through 7 of this Attachment C-3 (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * } and applying the actual aggregate number of transactions (not including MT minutes). For the purposes of Subsection (b) of this Table, the aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 shall include those transactions processed during such time for SPS. ------------------------------------------------------------------------------------------------------------------------- BTC per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC3 per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC4 per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC5A per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC11 per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT1 per min. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT2 per min. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT3 per min. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Transaction Pricing - Table 5 ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-21 Final Execution Copy <PAGE> -------------------------------------------------------------------------------- 2001 2001 -------------------------------------------------------------------------------- If the aggregate number of transactions (not including MT minutes) processed during a calendar year under the Agreement or Previous Agreement is equal to or greater than { * } but less than { * }, then the following charges set forth in this Table 5 shall apply to all such transactions; provided, however, that: (a) in no event shall the aggregate charges for such transactions exceed an amount equal to the sum of (i) the aggregate charges that would result if the charges for such transactions were calculated using the applicable pricing set forth in "Transaction Pricing - Table 6" below (including application of Subsection (b) of the proviso), and (ii) an amount equal to the product of (A) the applicable BTC11 charge in "Transaction Pricing - Table 6" below, and (B) the difference between { * } and the aggregate number of transactions processed during such calendar year; and (b) for the aggregate number of transactions (not including MT minutes) processed during 1999 under the Previous Agreement or the Agreement, the applicable charges shall be calculated as (i) the charges resulting from multiplying each of the rate tier levels set forth in the Previous Agreement (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * }, and applying the actual aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 to such modified rate tier levels, plus (ii) the charges resulting from multiplying each of the Transaction Pricing rate tier levels set forth in Transaction Pricing - Tables 1 through 7 of this Attachment C-3 (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * } and applying the actual aggregate number of transactions (not including MT minutes). For the purposes of Subsection (b) of this Table, the aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 shall include those transactions processed during such time for SPS. ------------------------------------------------------------------------------------------------------------------------- BTC per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC3 per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC4 per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC5A per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- BTC11 per trans. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT1 per min. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT2 per min. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- MT3 per min. { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- Transaction Pricing - Table 6 ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3 - 22 Final Execution Copy <PAGE> If the aggregate number of transactions (not including MT minutes) processed during a calendar year under the Agreement or Previous Agreement is equal to or greater than { * } but less than { * }, then the following charges set forth in this Table 6 shall apply to all such transactions; provided, however, that: (a) in no event shall the aggregate charges for such transactions exceed an amount equal to the sum of (i) the aggregate charges that would result if the charges for such transactions were calculated using the applicable pricing set forth in "Transaction Pricing - Table 7" below (including application of Subsection (b) of the proviso), and (ii) an amount equal to the product of (A) the applicable BTC11 charge in "Transaction Pricing - Table 7" below, and (B) the difference between { * } and the aggregate number of transactions processed during such calendar year; and (b) for the aggregate number of transactions (not including MT minutes) processed during 1999 under the Previous Agreement or the Agreement, the applicable charges shall be calculated as (i) the charges resulting from multiplying each of the rate tier levels set forth in the Previous Agreement (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * }, and applying the actual aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 to such modified rate tier levels, plus (ii) the charges resulting from multiplying each of the Transaction Pricing rate tier levels set forth in Transaction Pricing - Tables 1 through 7 of this Attachment C-3 (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * } and applying the actual aggregate number of transactions (not including MT minutes). For the purposes of Subsection (b) of this Table, the aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 shall include those transactions processed during such time for SPS. ----------------------------------------------------------------------------------------------------- BTC per trans. { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------- BTC3 per trans. { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------- BTC4 per trans. { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------- BTC5A per trans. { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------- BTC11 per trans. { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------- MT1 per min. { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------- MT2 per min. { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------- MT3 per min. { * } { * } { * } { * } { * } { * } ----------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------- Transaction Pricing - Table 7 ----------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ---------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-23 Final Execution Copy <PAGE> -------------------------------------------------------------------------------- If the aggregate number of transactions (not including MT minutes) processed during a calendar year under the Agreement or Previous Agreement is equal to or greater than { * }, then the following charges shall apply to all such transactions; provided, however, that for the aggregate number of transactions (not including MT minutes) processed during 1999 under the Previous Agreement or the Agreement, the applicable charges shall be calculated as (a) the charges resulting from multiplying each of the rate tier levels set forth in the Previous Agreement (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * }, and applying the actual aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 to such modified rate tier levels, plus (ii) the charges resulting from multiplying each of the Transaction Pricing rate tier levels set forth in Transaction Pricing - Tables 1 through 7 of this Attachment C-3 (e.g., { * } transactions, { * } transactions, { * } transactions, etc.) by { * } and applying the actual aggregate number of transactions (not including MT minutes) processed on or after the Effective Date during 1999 to such modified rate tier levels. For the purposes of this Table, the aggregate number of transactions (not including MT minutes) processed before the Effective Date during 1999 shall include those transactions processed during such time for SPS. ------------------------------------------------------------------------------------------------------------------- BTC per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------- BTC3 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------- BTC4 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------- BTC5A per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------- BTC11 per transaction { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------- MT1 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------- MT2 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------- MT3 per minute { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-24 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Miscellaneous Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ---------------------------------------------------------------------------- Jan - Jun July - Dec 2,002 2,003 2,004 2,005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- SIM Inside Move one-time charge { * } { * } { * } { * } { * } { * } Install (per drop) ------------------------------------------------------------------------------------------------------------------------- SMG MIG/ICN Hardware one-time charge { * } { * } { * } { * } { * } { * } platform install ------------------------------------------------------------------------------------------------------------------------- SPG Lan Card for one-time charge { * } { * } { * } { * } { * } { * } 3174 or PC Install ------------------------------------------------------------------------------------------------------------------------- STR token ring one-time charge { * } { * } { * } { * } { * } { * } attachment install ------------------------------------------------------------------------------------------------------------------------- USRBINST US one-time charge { * } { * } { * } { * } { * } { * } Robitics Modem install ------------------------------------------------------------------------------------------------------------------------- FOC Field Office monthly { * } { * } { * } { * } { * } { * } Controllers* ------------------------------------------------------------------------------------------------------------------------- GDDM IBM GDDM monthly { * } { * } { * } { * } { * } { * } Software License ------------------------------------------------------------------------------------------------------------------------- HPA Remote Print monthly { * } { * } { * } { * } { * } { * } Config. A* ------------------------------------------------------------------------------------------------------------------------- PP1 token ring LAN monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PP2 PC LAN monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PP3 Token Ring LAN monthly { * } { * } { * } { * } { * } { * } PC3270 V3 ------------------------------------------------------------------------------------------------------------------------- PP7 SDLC PC3270 V3 monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-25 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Miscellaneous Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- PP8 PC3270 V1 monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PP9 3270 COAX monthly { * } { * } { * } { * } { * } { * } PC3270 V1 ------------------------------------------------------------------------------------------------------------------------- PPB PC3270 V1 monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PPC 3270 WSP monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PPD PSPC monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PPE NSA Only monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PPF NSA and SDLC monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- PPH LAN/PC hdwr tr monthly { * } { * } { * } { * } { * } { * } adapter fam/2 ------------------------------------------------------------------------------------------------------------------------- PPI LAN/PC hdwr monthly { * } { * } { * } { * } { * } { * } tr adapter 16/4MB ------------------------------------------------------------------------------------------------------------------------- PPK LAN/PC hdwr monthly { * } { * } { * } { * } { * } { * } tr adapter 16/4MB fam/1 ------------------------------------------------------------------------------------------------------------------------- PPM LAN/PC hdwr monthly { * } { * } { * } { * } { * } { * } MLTPRTCOL fam/2 ------------------------------------------------------------------------------------------------------------------------- PPN LAN/PC hdwr monthly { * } { * } { * } { * } { * } { * } 3270 COAX fam/2 ------------------------------------------------------------------------------------------------------------------------- PPO LAN/PC hdwr monthly { * } { * } { * } { * } { * } { * } 3270 COAX fam/1 ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3-26 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Miscellaneous Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- PPP LAN/PC sftw LAN monthly { * } { * } { * } { * } { * } { * } support PRGM 1.1 ------------------------------------------------------------------------------------------------------------------------- PPQ LAN/PC sftw PC monthly { * } { * } { * } { * } { * } { * } LAN PRGM 1.3 ------------------------------------------------------------------------------------------------------------------------- PPR LAN/PC sftw monthly { * } { * } { * } { * } { * } { * } 3270 Emulation V3 ------------------------------------------------------------------------------------------------------------------------- PPT LAN/PC sftw monthly { * } { * } { * } { * } { * } { * } OS/2 EE 1.1 ------------------------------------------------------------------------------------------------------------------------- SFTWR Software monthly { * } { * } { * } { * } { * } { * } (per license) ------------------------------------------------------------------------------------------------------------------------- TRB Token Ring monthly { * } { * } { * } { * } { * } { * } Bridge Config A* ------------------------------------------------------------------------------------------------------------------------- TRBC Token Ring monthly { * } { * } { * } { * } { * } { * } Bridge Config B* ------------------------------------------------------------------------------------------------------------------------- USRMOD US Robotics monthly { * } { * } { * } { * } { * } { * } Modem* ------------------------------------------------------------------------------------------------------------------------- VTAMSM Small VTAM monthly { * } { * } { * } { * } { * } { * } access method* ------------------------------------------------------------------------------------------------------------------------- WCAUF FIBER CAU monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- HPB Remote Print monthly { * } { * } { * } { * } { * } { * } System Config B* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3 - 27 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Miscellaneous Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- HVPORT 3174 Port monthly { * } { * } { * } { * } { * } { * } charge* ------------------------------------------------------------------------------------------------------------------------- INF Informer 213 monthly { * } { * } { * } { * } { * } { * } terminals ------------------------------------------------------------------------------------------------------------------------- LCG Lan controllers monthly { * } { * } { * } { * } { * } { * } gateway config A* ------------------------------------------------------------------------------------------------------------------------- LCGC Lan monthly { * } { * } { * } { * } { * } { * } controllers gateway config B* ------------------------------------------------------------------------------------------------------------------------- LMPC LAN Manager PC monthly { * } { * } { * } { * } { * } { * } Hardware ------------------------------------------------------------------------------------------------------------------------- LTWABWS LAN to LAN monthly { * } { * } { * } { * } { * } { * } wide area bridge* ------------------------------------------------------------------------------------------------------------------------- MB Dial up drop monthly { * } { * } { * } { * } { * } { * } with MB line* ------------------------------------------------------------------------------------------------------------------------- MOD OFFNET MODEM monthly { * } { * } { * } { * } { * } { * } config A* ------------------------------------------------------------------------------------------------------------------------- MOD1 Offnet Modem monthly { * } { * } { * } { * } { * } { * } config B* ------------------------------------------------------------------------------------------------------------------------- PR2 Dot Matrix monthly { * } { * } { * } { * } { * } { * } 4224/201 Printer* ------------------------------------------------------------------------------------------------------------------------- PR3 Dot matrix monthly { * } { * } { * } { * } { * } { * } 4224/202 Printer* ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3 - 28 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Miscellaneous Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) ---------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- PR4 Dot Matrix monthly { * } { * } { * } { * } { * } { * } 3268/002 Printer* ------------------------------------------------------------------------------------------------------------------------- PR5 Laser 3812/002 monthly { * } { * } { * } { * } { * } { * } Printer* ------------------------------------------------------------------------------------------------------------------------- PR6 3816/01s Page monthly { * } { * } { * } { * } { * } { * } Printer* ------------------------------------------------------------------------------------------------------------------------- TBA Toshiba monthly { * } { * } { * } { * } { * } { * } Portable PC ------------------------------------------------------------------------------------------------------------------------- WCAUC Copper CAU monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- WLAM LAM - LOBE monthly { * } { * } { * } { * } { * } { * } Access Module ------------------------------------------------------------------------------------------------------------------------- WS1 Workstation 1* monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- WS2 Workstation 2* monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- WS3 Workstation 3* monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- WS4 Workstation 4* monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- WS5 Workstation 5* monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- WS6 Workstation 6* monthly { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3 - 29 Final Execution Copy <PAGE> ------------------------------------------------------------------------------------------------------------------------- Miscellaneous Services ------------------------------------------------------------------------------------------------------------------------- ISE Resource Unit Charge per Resource Unit (by calendar year) --------------------------------------------------------------------------- Jan - Jun July - Dec 2002 2003 2004 2005 2001 2001 ------------------------------------------------------------------------------------------------------------------------- WSS Workstation on monthly { * } { * } { * } { * } { * } { * } 9371* ------------------------------------------------------------------------------------------------------------------------- WSSNBU SNBU for monthly { * } { * } { * } { * } { * } { * } workstations* ------------------------------------------------------------------------------------------------------------------------- BTC7 (LIG Warning per transaction { * } { * } { * } { * } { * } { * } Bulletins) ------------------------------------------------------------------------------------------------------------------------- TELEV Teleview per Kbytes { * } { * } { * } { * } { * } { * } ------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-3 to Schedule C MSDW/IBM Confidential of Services Agreement C3 - 30 Final Execution Copy <PAGE> ATTACHMENT C-4 Personnel Resource Categories 1. PERSONNEL RESOURCE CATEGORIES FOR RESOURCES FROM IBM INTEGRATION SERVICES, IBM PRODUCT SUPPORT SERVICES AND IBM GLOBAL LEARNING SERVICES ----------------------------------------------------------------------------------------------------------- Tier Personnel Categories ----------------------------------------------------------------------------------------------------------- 1 Senior Leadership - Executive Band (e.g., Industry Consultant, Senior Executive, Managing Principal) ----------------------------------------------------------------------------------------------------------- 2 Project Management (e.g., Executive Consultant, Senior I/T Architect, Project Executive, Principal) ----------------------------------------------------------------------------------------------------------- 3 Senior Personnel (e.g., Senior Consultant, Senior I/T Architect Project Manager, Senior Technical Specialist, Senior I/T Specialist) ----------------------------------------------------------------------------------------------------------- 4 Team Personnel (e.g., Senior Advisory Consultant, Senior Advisory I/T Architect, Project Leader, Senior Advisory Technical Specialist, Senior Advisory I/T Specialist ----------------------------------------------------------------------------------------------------------- 5 Team Personnel (e.g., Advisory Technical Specialist, Advisory I/T Specialist) ----------------------------------------------------------------------------------------------------------- 6 Team Personnel (e.g., Technical Specialist, Testing Specialist Business Analyst, Programmer Analyst, Operations Support) ----------------------------------------------------------------------------------------------------------- 7 Project Support ----------------------------------------------------------------------------------------------------------- 2. PERSONNEL RESOURCE CATEGORIES FOR RESOURCES FROM IBM CONSULTING AND SERVICES ----------------------------------------------------------------------------------------------------------- Tier Personnel Resource ----------------------------------------------------------------------------------------------------------- A Consulting Executive ----------------------------------------------------------------------------------------------------------- B Consulting Principal ----------------------------------------------------------------------------------------------------------- C Managing Consultant ----------------------------------------------------------------------------------------------------------- D Consultant ----------------------------------------------------------------------------------------------------------- E Associate Consultant ----------------------------------------------------------------------------------------------------------- F Research Associate ----------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attachment C-4 to Schedule C MSDW/IBW Confidential of Services Agreement C4 - 1 Final Execution Copy <PAGE> ATTACHMENT C-5 Example of Calculation of ARCs and RRCs The following sets forth an example of the calculation of ARCs and RRCs pursuant to Section 4.3 of this Schedule C. 1. ASSUMPTIONS The following information has been assumed for the purposes of this example: (a) ARCs and RRCs are being calculated for the CPU Prime Class B ISE for April, May and June of calendar year 2000. (b) the IPSS Annual Baseline Volume for the CPU Prime Class B ISE in calendar year 2000 is { * } CPU Seconds (from Attachment C-1 of this Schedule C). (c) the applicable IPSS Monthly Baseline Volume for each of April, May and June of 2000 for the CPU Prime Class B ISE equals one twelfth (1/12) of the Annual Baseline Volume, or { * } CPU Seconds for each of such months. (d) The actual volumes of chargeable resource usage for the CPU Prime Class B ISE for calendar months April, May and June 2000 are as follows: (i) { * } CPU Seconds for April, 2000; (ii) { * } CPU Seconds for May, 2000; and (iii) { * } CPU Seconds for June, 2000. 2. CALCULATIONS Based upon the assumptions set forth in Article 1 of this Attachment C-5, and pursuant to the terms of Section 4.3 of Schedule C, ARCs would be calculated for the CPU Prime Class B ISE for each of April and June of 2000, and a RRC would be calculated for the CPU Prime Class B ISE for May of 2000. 2.1 Calculation of ARC for April, 2000. ---------------------------------- Pursuant to Section 4.3(a) of Schedule C, the applicable ARC formula is as follows: ARC = { * } Given the assumptions set forth in Article 1 of this Attachment C-5 and the definitions of the formula values set forth in Section 4.3(a) of Schedule C, the formula values would be derived as follows: -------------------------------------------------------------------------------- Attachment C-5 to Schedule C MSDW/IBM Confidential of Services Agreement Final Execution Copy C5-1 <PAGE> (a) A = { * } (b) B = { * } (c) C = { * } (d) D = { * } (e) V = { * } (i.e., the number of CPU Prime Class B CPU Seconds in the IPSS Monthly Baseline Volume given the assumption set forth in Section 1(c) of this Attachment C-5); (f) Z = { * } (i.e., the ARC Deadband as defined in Section 4.3(a) of Schedule C); (g) R\\1\\ = .{ * } (i.e., the applicable value from Attachment C-2 of this Schedule C); (h) R/\\2\\ = { * } (i.e., the applicable value from Attachment C-2 of this Schedule C); (i) R\\3\\ = { * } (i.e., the applicable value from Attachment C-2 of this Schedule C); and (j) R\\4\\ = .{ * } (i.e., the applicable value from Attachment C-2 of this Schedule C). Using the formula, the applicable ARC would be calculated as: ARC = { * } ARC = { * } ARC = { * } ARC = { * } ARC = { * } 2.2 Calculation of RRC for May, 2000. --------------------------------- Pursuant to Section 4.3(b) of Schedule C, the applicable RRC formula is as follows: RRC = { * }; Given the assumptions set forth in Article 1 of this Attachment C-5 and the definitions of the formula values set forth in Section 4.3(b) of Schedule C, the applicable RRC Deadband would be equal to { * }, and the formula values would be derived as follows: (a) A = { * } (b) B = { * } (c) C = { * } -------------------------------------------------------------------------------- Attachment C-5 to Schedule C MSDW/IBM Confidential of Services Agreement C5-2 Final Execution Copy <PAGE> (d) R\\1\\ = { * } (i.e., the applicable value from Attachment C-2 of this Schedule C); and (e) R\\2\\ = { * } (i.e., the applicable value from Attachment C-2 of this Schedule C); Using the formula, the applicable RRC would be calculated as: RRC = { * } RRC = { * } RRC = { * } 2.3 Calculation of ARC for June, 2000. ---------------------------------- Pursuant to Section 4.3(a) of Schedule C, the applicable ARC formula is as follows: ARC = { * } Given the assumptions set forth in Article 1 of this Attachment C-5 and the definitions of the formula values set forth in Section 4.3(a) of Schedule C, the formula values would be derived as follows: (a) A = { * } (b) B = { * }; (c) C = { * }; (d) D = { * }; (e) V = { * } (i.e., the number of CPU Prime Class B CPU Seconds in the IPSS Monthly Baseline Volume given the assumption set forth in Section 1(c) of this Attachment C-5); (f) Z = { * } (i.e., the ARC Deadband as defined in Section 4.3(a) of Schedule C); (g) R\\1\\ = { * } (i.e., the applicable value from Attachment C-2 of this Schedule C); (h) R\\2\\ = { * } (i.e., the applicable value from Attachment C-2 of this Schedule C); (i) R\\3\\ = { * } (i.e., the applicable value from Attachment C-2 of this Schedule C); and (j) R\\4\\ = { * } (i.e., the applicable value from Attachment C-2 of this Schedule C). Using the formula, the applicable ARC would be calculated as: ARC = { * } ARC = { * } -------------------------------------------------------------------------------- Attachment C-5 to Schedule C MSDW/IBM Confidential of Services Agreement C5-3 Final Execution Copy <PAGE> ARC = { * } ARC = { * } 2.4 Calculation of { * }. -------------------- Pursuant to Section 4.3(c) of Schedule C, the ARCs and RRCs calculated above for April, May and June of 2000 would be { * }, resulting in a net { * } charge to MSDW for the CPU Prime Class B ISE of { * } (i.e., { * }). -------------------------------------------------------------------------------- Attachment C-5 to Schedule C MSDW/IBM Confidential of Services Agreement C5-4 Final Execution Copy