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5352-DIR Contract SDD-1780 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 STATE OF TEXAS DEPARTMENT OF INFORMATION RESOURCES CONTRACT FOR PRODUCTS AND RELATED SERVICES SPRINT SOLUTIONS, INC. 1. Introduction A. Parties ThisContract for products and related services is entered into between the State of Texas, th its principal place of business at 300 West 15 Street, Suite 1300, Austin, Texas 78701, and Sprint Solutions, Inc. 6200 Sprint Parkway, Overland Park, Kansas 66251. B. Compliance with Procurement Laws This Contract is the result of compliance with applicable procurement laws of the State of Texas. DIR issued a solicitation on the Comptroller of Public Accounts Business Daily, Request for Offer (RFO) DIR-SDD-TMP-169, on October 14, 2011, for Hardware, Software and Services for Wireless Voice, Data, Pagers and Mobile Satellite Voice. Upon execution of this Contract, a notice of award for RFO DIR-SDD-TMP-169 shall be posted by DIR on the Electronic State Business Daily. C. Order of Precedence This Contract; Appendix A, Standard Terms and Conditions For Products and Related Subcontracting Plan; Appendix C, Pricing Index; Appendix D, Service Agreement Terms; Exhibit 1-SDD-TMP-169, including all addenda; and Exhibit 2, RFO DIR-SDD-TMP-169, including all addenda;are incorporated by reference and constitute the entire agreement between DIR and Vendor. In the event of a conflict between the documents listed in this paragraph, the controlling document shall be this Contract, then Appendix A, then Appendix B, then Appendix C, then Appendix D, then Exhibit 1, then Exhibit 2. In the event and to the extent any provisions contained in multiple documents address the same or substantially the same subject matter but do not actually conflict, the more recent provisions shall be deemed to have superseded earlier provisions. 2. Term of Contract A. The term of this Contract shall be one (1) year commencing on the last date of approval by DIR and Vendor. Prior to expiration of the original term, DIR and Vendor may extend the Contract, upon mutual agreement, for up to three (3) optional one-year terms. Page 1 of 9 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 B. DIR agrees that Vendor may accept Purchase Orders with a termination date up to one year beyond the theneffective termination date of the Contract. Vendor agrees that it shall not accept Purchase Orders under the Contract for any term beyond one year from the effective termination date of the Contract. 3. Product and Service Offerings A. Products Products available under this Contract are limited to Wireless Voice & Data Products as specified in Appendix C, Pricing Index. Vendor may incorporate changes to their product offering; however, any changes must be within the scope of products awarded based on the posting described in Section 1.B above. Vendor may not add a solicitation described in Section 1.B above. B. Services Services available under this Contract are limited to Wireless Voice & Data Services as specified in Appendix C, Pricing Index. Vendor may incorporate changes to their service offering; however, any changes must be within the scope of services awarded based on the posting described in Section 1.B above. 4. Pricing A. MSRP is defined as the product sales price suggested by the manufacturer or publisher of a product. B. Customer Discount The minimum Customer discount from the Vendor for all standard Sprint Wireless Voice and Data Service Plans for corporate-units will be 24% off eligible monthly recurring charges. The minimum Customer discount from the Vendor for all Sprint and Nextel accessories for corporate-liable units is 20% off of current retail price. . C. Customer Price 1) The price to the Customer shall be calculated as follows: Customer Price = MSRP Customer Discount 2) Customers purchasing products and services under this Contract may negotiate more advantageous pricing or participate in special promotional offers. In such event, a copy of such better offerings shall be furnished to DIR upon request. 3) If pricing for products or services available under this Contract are provided at a lower price to: (i) an eligible Customer who is not purchasing those products or Page 2 of 9 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 services under this Contract or (ii) any other entity or consortia authorized by Texas law to sell said products and services to eligible Customers, then the available Customer Price in this Contract shall be adjusted to that lower price. This requirement applies to products or services quoted by Vendor or its resellers for a quantity of one (1) under like terms and conditions, and does not apply to volume or special pricing purchases. This Contract shall be amended within ten (10) business days to reflect the lower price. D.Telecommunications Fees and Surcharges and Taxes (a) The only applicable FCC authorized fee, surcharge or assessment in effect as of the date of this Contract is the Federal Universal Service Fund charge. Any additional FCC, PUC or other authorized telecommunications taxes, fees and surcharges applicable to any Service may only be imposed during the Term, upon a written amendment to authorize such imposition under the Contract. Vendor acknowledges that certain Customers that are political subdivisions of the State, are exempt from the imposition and collection of certain State telecommunications fees, including the Texas Universal Service Fund Charge and the Texas Infrastructure Fund assessment. In addition, State agency Customers have additional exemptions from State telecommunications fees, including the 9- 1-1 emergency service fee, 9-1-1 equalization surcharge, poison control surcharge, and late charges imposed under Section 55.010, Texas Utilities Code. Vendor agrees to not bill for any items which are not mandated by the FCC, PUC or other proper authority and which are otherwise not applicable to the Services and for which Vendor has requested and received valid exemption certificates from Customers. Vendor agrees to promptly correct any incorrect billings of telecommunications fees and surcharges that occur. Vendor acknowledges that DIR makes no representations about the exemption status of any Customers that are assistance organizations, as defined in Section 2175.001, Texas Government Code or certain private institutions of higher education under Section 2170.004 (5), Texas Government Code. Vendor must request and receive any exemption certificates that may apply from each such organization directly. (b) During the Term, all changes in the law or fee structures, which creates or authorizes Vendor to impose an unlisted telecommunications fee and surcharge on the Services, which Vendor desires to impose and for which DIR Customers do not have an exemption, shall require an amendment in order to be effective against the State, DIR and Customers. In the event of a change in the law or telecommunications fees and surcharges structures, which results in an exemption from payment in favor of the State, DIR and/or Customers, Vendor shall give effect to theexemption without the necessity of an amendment hereto. (c) Vendor acknowledges that certain Government Entity Customers are exempt from state sales, use and excise taxes, Section 151.309, Texas Tax Code, and Federal Excise Tax, 26 USC Sections 4253 (i) and (j). Vendor further acknowledges that State agency Customers are exempt from the assessment and collection of sales taxes imposed by political subdivisions of the State. See Sections 321.208 (municipalities) and 323.207 (counties), Texas Tax Code. The Government Entity Page 3 of 9 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 Customers shall issue a tax exemption certificate upon request to Vendor. Vendor acknowledges that DIR makes no representation about the exemption status of any Customers that are assistance organizations, as defined in Section 2175.001, Texas Government Code or certain private institutions of higher education under Section 2170.004 (5), Texas Government Code. Vendor must request and receive any exemption certificates that may apply from each such organization directly. E.Other Fees Vendor acknowledges all activation fees and termination fees, including early termination fees, are waived for all Customers. F.Back-billing Prices to Customers for Services inadvertently left off previous invoices by the Vendor may be back-billed no more than 120 calendar days for usage. Pursuant to PUC Rule 26.27, a six-month limit from the date of discovery of an error applies to back-billing of all billed Services. Back-billing shall be included in the Adjustments. For purposes of this paragraph, a billing Adjustment is as modification or correction of a billing amount or an element of a Service. G. DIR Cost Recovery Fee The DIR Cost Recovery Fee (CRF) is authorized by Chapter 2170, Texas Government Code, and DIR has the discretion to set the rate of the CRF to recover its costs in accordance with the statute. The initial rate for the CRF is set forth in Section 5 herein. The DIR CRF specified in Section 5 below shall not be broken out as a separate line item when pricing or invoice is provided to Customer. H. Shipping and Handling Fees The price to the Customer under this Contract shall include all shipping and handling shall be charged to the Customer for standard shipping and handling. If the Customer requests expedited delivery, Customer will be responsible for any charges for expedited delivery. I. Tax-Exempt As per Section 151.309, Texas Tax Code, Government Entity Customers under this Contract are exempt from the assessment of State sales, use and excise taxes. Further, Government Entity Customers under this Contract are exempt from Federal Excise Taxes, 26 United States Code Sections 4253(i) and (j).Assistance organizations may be exempt from the assessment of State sales, use and excise taxes under Section 151.310, Texas Tax Code. Vendor is responsible for determining applicable taxes on assistance organizations. DIR makes no representation with regard to the tax-exempt status of private institutions of higher education, qualified to participate in this Contract pursuant to Section 2170.004(5), Texas Government Code. Page 4 of 9 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 J. Travel Expense Reimbursement Pricing for services provided under this Contract are exclusive of any travel expenses that may be incurred in the performance of those services. Travel expense reimbursement may include personal vehicle mileage or commercial coach transportation, hotel accommodations, parking and meals; provided, however, the amount of reimbursement by Customers shall not exceed the amounts authorized for state employees as adopted by each Customer; and provided, further, that all reimbursement rates shall not exceed the maximum rates established for state employees under the current State Travel Management Program. Travel time may not be included as part of the amounts payable by Customer for any services rendered under this Contract. The DIR administrative fee specified in Section 5 below is not applicable to travel expense reimbursement. Anticipated travel expenses must be pre- approved in writing by Customer. K.Changes to Prices Vendor may change the price of any product or service at any time, based upon changes to the MSRP, but discount levels shall remain consistent with the discount levels specified in this Contract. Price decreases shall take effect automatically during the term of this Contract and shall be passed onto the Customer immediately. 5. DIR Cost Recovery Fee A) The Cost Recovery Fee (CRF) to be paid by the Vendor to DIR for Telecommunications Products and Services based on the dollar value of all sales to Customers pursuant to this Contract is two percent (2%). Payment will be calculated for all telecommunications sales, net of returns and credits. For example, the CRF fee for sales totaling $100,000 shall be $2,000. B) All prices quoted to Customers shall include the applicable CRF fee. DIR reserves the right to change this fees upwards or downwards during the term of this Contract, upon written notice to Vendor. Changes in the CRF fees shall be incorporated into the price to the Customers on the date designated by DIR. 6. Notification All notices under this Contract shall be sent to a party at the respective address indicated below. If sent to the State: Director, Communications Technology Services Division With a copy to: Attorney, Communications Technology Services Division Department of Information Resources 300 W. 15th Street, Suite 1300 Austin, Texas 78701 Facsimile: (512) 475-4759 Page 5 of 9 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 If sent to the Vendor: Michaela Clairmonte Sprint Solutions, Inc. 12502 Sunrise Valley Drive Reston, VA 20196 Phone: (703)433-8581 Facsimile: (703)433-8796 Email: michaela.clairmonte@sprint.com 7. Shrink/Click-wrap License Agreement Regardless of any other provision or other license terms which may be issued by Vendor after the effective date of this Contract, and irrespective of whether any such provisions have been proposed prior to or after the issuance of a Purchase Order for products licensed under this Contract, or the fact that such other agreement may be affixed to or accompany software upon delivery (shrink-wrap), the terms and conditions set forth in this Contract shall supersede and govern the license terms between Customers and It is the CustomeShrink/Click-wrap License Vendor. Agreement and determine if the Customer accepts the license terms as amended by this Contract. If the Customer does not agree with the license terms, Customer shall be responsible for negotiating with the reseller to obtain additional changes in the Shrink/Click-wrap License Agreement language from the software publisher. 8. Authorized Exceptions to Appendix A, Standard Terms and Conditions for Product and Related Services Contracts. Appendix A, Section 4.D. Assignment 1.is hereby restated as follows: D. Assignment DIR or Vendor may assign the Contract without prior written approval to: i) a successor in interest (for DIR, another state agency as designated by the Texas Legislature and for Vendor, entity that has purchased all or substantially all of its assets), or ii) a subsidiary, parent company or affiliate, or iii) as necessary to satisfy a regulatory requirement imposed upon a party by a governing body with the appropriate authority. Assignment of the Contract under the above terms shall require written notification by the assigning party. Any other assignment by a party shall require the written consent of the other party. Each party agrees to cooperate to amend the Contract as necessary to maintain an accurate record of the contracting parties. Appendix A, Section 6.A. Service, Sales and Support of the Contract 2.is hereby restated as follows: A.Service, Sales and Support of the Contract Vendor shall provide service, sales and support resources to serve all Customers throughout the State. It is the responsibility of the Vendor to sell, market, and promote products and services available under the Contract. Vendor shall use good faith efforts to ensure that current and potential DIR Eligible Customers are made Page 6 of 9 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 aware of the existence of the Contract. Excluding any existing and new purchases on existing federal, cooperative and standalone contracts held by Vendor which were executed prior to the effective date of this Contract and which DIR acknowledges are not in conflict with Section 4(C)(3) of the Contract, all new sales to Texas DIR Customers for products and services available under the Contract shall be processed through the Contract. Appendix A, Section 8.B.2. Detailed Monthly Report 3.is hereby restated as follows: 2)Detailed Monthly Report Vendor shall electronically provide DIR with a detailed monthly report in the format required by DIR showing the dollar volume of any and all sales under the Contract for the previous month period. Reports shall be submitted to the DIR Go DIRect Coordinator. Reports are due on the fifteenth (15th) calendar day after the close of the previous month period. If the fifteenth (15th) calendar day falls on a non-business day, the report shall be due on the next business day. It is the responsibility of Vendor to collect and compile all sales under the Contract from participating Order Fulfillers and submit one (1) monthly report. The monthly report shall include, per applicable, Customer name, invoice date, invoice number, description, part number, manufacturer, quantity, unit price, extended price, Customer Purchase Order number, by DIR. Each report must contain all information listed above per transaction or the report will be rejected and returned to the Vendor for correction in accordance with this section. Appendix A, Section 8.B.4.A. 4.is hereby restated as follows: 4)DIR CRF a) The applicable CRF/administrative fee shall be paid by Vendor to DIR to defray the DIR costs of negotiating, executing, and administering the Contract and to recover costs of the telecommunications program. The CRF/ fee is as specified in Section 5 of the th Contract. Payment of the CRF fee shall be due on the seventeen (17) calendar day after th the close of the previous month period.If the seventh (17)calendar day falls on a non- business day, the cost recovery fee shall be due on the next business day. Appendix A, Section 9.N. Required Insurance Covers 5.is hereby restated as follows: N. Required Insurance Coverage As a condition of this Contract with DIR, Vendor shall provide the listed insurance coverage within 5 days of execution of the Contract if the Vendor is awarded services and/or use employer vehicles to conduct work on behalf of Customers. In addition, when engaged by a Customer to provide services on Customer premises, the Vendor shall, at its own expense, secure and maintain the insurance coverage specified herein, and shall provide proof of such insurance coverage to the related Customer within five (5) business days following the execution of the Purchase Order. Vendor Page 7 of 9 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 may not begin performance under the Contract and/or a Purchase Order until such proof of insurance coverage is provided to, and approved by, DIR and the Customer. All required insurance must be issued by companies that are A- financially rated and duly licensed, admitted, and authorized to do business in the State of Texas. The Customer and DIR will be named as Additional Insureds on all required coverage. Required coverage must remain in effect through the term of the Contract and each Purchase Order issued to Vendor there under. The minimum acceptable insurance provisions are as follows: Commercial General Liability 1) Commercial General Liability must include a combined single limit of $500,000 per occurrence for coverage A, B, & C including products/completed operations, where appropriate, with a separate aggregate of $500,000. The policy shall contain the following provisions: a) Blanket contractual liability coverage for liability assumed under the Contract; b) Independent Contractor coverage; c) State of Texas, DIR and Customer listed as an additional insured; d) 30-day Notice of Termination in favor of DIR and/or Customer; and e) Waiver of Transfer Right of Recovery Against Others in favor of DIR and/or Customer. 2) include limits consistent with statutory benefits outlined in the Texa Compensation Act (Art. 8308-1.01 et seq. Tex. Rev. Civ. Stat) and minimum $500,000 bodily injury disease policy limit and $250,000 per disease per employee. 3)Business Automobile Liability Insurance Business Automobile Liability Insurance must cover all owned, non-owned and hired vehicles with a minimum combined single limit of $500,000 per occurrence for bodily injury and property damage. Alternative acceptable limits are $250,000 bodily injury per person, $500,000 bodily injury per occurrence and at least $100,000 property damage liability per accident. The policy shall contain the following endorsements in favor of DIR and/or Customer: a) Waiver of Subrogation; b) 30-day Notice of Termination; and c) Additional Insured. Page 8 of 9 EXHIBIT 2 DIR Contract No. DIR-SDD-1780 This Contract is executed to be effective as of the date of last signature. Sprint Solutions, Inc. Authorized By: Signature on File Name: John Dupree Title: Senior Vice President Date: 4/25/12 The State of Texas, acting by and through the Department of Information Resources Authorized By: Signature on File Name: Carl Marsh Title: Chief Operating Officer Date: 4/30/12 Page 9 of 9 EXHIBIT 2 Amendment Number 2 to Contract Number DIR-SDD-1780 between State of Texas, acting by and through the Department of Information Resources And SPRINT SOLUTIONS, INC. This Amendment Number 2 to Contract Number DIR-SDD-1780)is between the Sprint Solutions, Inc. ). DIR andVendoragree to modify the terms and conditions of the Contractas follows: Contract, Section 2, Term of Contract, 1. is hereby restated in its entirety as follows: A) The term of this Contract is extended through April 30, 2015. Prior to the expiration date of the term, DIR and Vendor may extend the Contract upon mutual agreement, for up to one (1) additional one-year term. B) All prices quoted to Customers shall include the applicable administrative fee. DIR reserves the right to change this fees upwards or downwards during the term of this Contract, upon written notice to Vendor. Changes in the administrative fees shall be incorporated into the price to the Customers on the date designated by DIR. Contract, Section 4, Pricing, G. DIR Cost Recovery FeeDIR 2., is re-titled Administrative Fee , and is hereby restated in its entirety as follows: G. DIR Administrative Fee Theadministrative fee is authorized by Chapter 2170, Texas Government Code, and DIR has the discretion to set the rate of the administrative fee to recover its costs in accordance with the statute. The initial rate for the administrative fee is set forth in Section 5 herein. The administrative fee specified in Section 5 below shall not be broken out as a separate line item when pricing or invoice is provided to Customer. Contract, Section 5, Cost Recovery Fee,DIR Administrative Fee 3. is re-titled , and is hereby restated in its entirety as follows: A) The administrative fee to be paid by the Vendor to DIR for Telecommunications Products and Services based on the dollar value of all sales to Customers pursuant to this Contract is two percent (2%). Payment will be calculated for all telecommunications sales, net of returns and credits. For example, the administrative fee for sales totaling $100,000.00 shall be $2,000.00. B) All prices quoted to Customers shall include the applicable administrative fee. DIRreserves the right to change this fees upwards or downwards during the term of this Contract, upon written notice to Vendor. Changes in the administrative fee Amendment Number 2 Contract Number DIR-SDD-1780Page 1 EXHIBIT 2 shall be incorporated into the price to the Customers on the date designated by DIR. Contract, Section 6, Notification,If Sent to the State, 4. is hereby restated in its entirety as follows: If sent to the State: Grace Windbigler, CTPM, CTCM Department of Information Resources Manager,Enterprise Contract Management 300 W. 15th Street, Suite 1300 Austin, Texas 78701 Phone: (512) 463-2861 Facsimile: (512) 475-4759 Appendix A, Section 8, Contract Administration, B. Reporting and CRF/ 5. Administrative Fees, B. Reporting and Administrative Fees, is re-titled and is restated as follows: B. Reporting and Administrative Fees 1) Reporting Responsibility a) Vendor shall be responsible for reporting all products and services purchased through Order Fulfillers under the Contract. Vendor shall file the monthly reports, subcontract reports, and pay the applicable DIR Administrative Fees in accordance with the due dates specified in this section. b) DIR shall have the right to verify required reports and to take any actions necessary to enforce its rights under this section, including but not limited to, 2)Detailed Monthly Report Commented [mkc1]: The requested COMMENT TO DIR: changes below are consistent with the original Contract and Vendor shall electronically provide DIR with a detailed monthly report in the Amendment 1 with Sprint. format required by DIR showing the dollar volume of any and allsales under the Contract for the previous month period. Reports shall be submitted to the DIR ICT Cooperative Contracts E-Mail Box at ict.sales@dir.texas.gov. Reports are due on the fifteenth (15 th) calendar day after the close of the previous month period. If the fifteenth (15th) calendar day falls on a non-business day, the report shall be due on the next business day. It is the responsibility of Vendor to collect and compile all sales under the Contract from participating Order Fulfillers and submit one (1) monthly report. The monthly report shall include, per transaction: the detailed sales for the period, the Order F applicable, Customer name, invoice date, invoice number, description, part number, manufacturer, quantity, unit price, applicable administrative fee assessed, extended price, Customer Purchase Order number, contact name, Custome Each report must contain all information listed above per transaction or the report will be rejected and returned to the Vendor for correction in accordance with this section. 3) Historically Underutilized Businesses Subcontract Reports a) Vendor shall electronically provide each Customer with their relevant Historically Underutilized Business Subcontracting Report, pursuant to the Amendment Number 2 Contract Number DIR-SDD-1780Page 2 EXHIBIT 2 Contract, as required by Chapter 2161, Texas Government Code. Reports shall also be submitted to DIR. b) Reports shall be due in accordance with the CPA rules. 4)DIR Administrative Fee Commented [mkc2]: The requested COMMENT TO DIR: changes below are consistent with the original Contract with a) The applicable administrative fee shall be paid by Vendor to DIR to defray Sprint. the DIR costs of negotiating, executing, and administering the Contract and to recover costs of the telecommunications program. The administrative fee is as specified in Section 5 of the Contract. Payment of the administrative fee shall be due on the seventeenth(17th) calendar day after the close of the previous month period.If the seventeenth(17th) calendar day falls on a non-business day, the administrativefee shall be due on the next business day. b) Vendor shall reference the DIR Contract number on all remittance instruments. 5)Accurate and Timely Submission of Reports Commented [mkc3]: There was COMMENT TO DIR: language added by DIR to Section 8, Contract Administration, a) The reports and payment of the applicable administrative fee shall be subsection B. Reporting and Administrative Fees, 5)Accurate accurate and timely and submitted in accordance with the due dates specified and Timely Submission of Reports as a new paragraph c) in in this section. Vendor shall correct any inaccurate reports or administrative Amendment 1.It was not included in this Amendment 2, so please confirm it is meant to be deleted from the Contract? fee payments within three (3) business days upon written notification by DIR. Vendor shall deliver any late reports or late administrative fee payments within three (3) business days upon written notification by DIR. If Vendor is unable to correct inaccurate reports or administrative fee payments or deliver late reports and applicable fee payments within three (3) business days, Vendor must contact DIR and provide a corrective plan of action, including the timeline for completion of correction. The corrective plan of action shall be subject to DIR approval. b) Should Vendor fail to correct inaccurate reports or cure the delay in timely delivery of reports and payments within the corrective plan of action timeline, DIR reserves the right to require an independent third party audit of the c) Failure to timely submit three (3) reports within any rolling twelve (12) month Appendix A, Section 8, Contract Administration, C. Records and Audit, 4), 6. is hereby restated in its entirety as follows: 4) For procuring State Agencies whose payments are processed by the Texas Comptroller of Public Accounts, the volume of payments made to Order Fulfillers through the Texas Comptroller of Public Accounts and the administrative fee based Appendix A, Section 9, Vendor Responsibilities, subsection A. 7. Indemnification,: is hereby restated in its entirety as follows Amendment Number 2 Contract Number DIR-SDD-1780Page 3 EXHIBIT 2 A. Indemnification 1) INDEPENDENT CONTRACTOR VENDOR AGREES AND ACKNOWLEDGES THAT DURING THE EXISTENCE OF THIS CONTRACT, IT IS FURNISHING PRODUCTS AND SERVICES IN THE CAPACITY OF AN INDEPENDENT CONTRACTOR AND THAT VENDOR IS NOT AN EMPLOYEE OF THE CUSTOMER OR THE STATE OF TEXAS. 2) Acts or Omissions Vendor shall indemnify and hold harmless the State of Texas and Customers, AND/OR THEIR OFFICERS, AGENTS, EMPLOYEES, REPRESENTATIVES, CONTRACTORS, ASSIGNEES, AND/OR DESIGNEES FROM ANY AND ALL LIABILITY, ACTIONS, CLAIMS, DEMANDS, OR SUITS, AND ALL RELATED COSTS, ATTORNEY FEES, AND EXPENSES arising out of, or resulting from any acts or omissions of the Vendor or its agents, employees, subcontractors, Order Fulfillers, or suppliers of subcontractors in the execution or performance of the Contract and any Purchase Orders issued under the Contract. THE DEFENSE SHALL BE COORDINATED BY VENDOR WITH THE OFFICE OF THE ATTORNEY GENERAL WHEN TEXAS STATE AGENCIES ARE NAMED DEFENDANTS IN ANY LAWSUIT AND VENDOR MAY NOT AGREE TO ANY SETTLEMENT WITHOUT FIRST OBTAINING THE CONCURRENCE FROM THE OFFICE OF THE ATTORNEY GENERAL. VENDOR AND THE CUSTOMER AGREE TO FURNISH TIMELY WRITTEN NOTICE TO EACH OTHER OF ANY SUCH CLAIM. 3) Infringements a) Vendor shall indemnify and hold harmless the State of Texas and Customers, AND/OR THEIR EMPLOYEES, AGENTS, REPRESENTATIVES, CONTRACTORS, ASSIGNEES, AND/OR DESIGNEES from any and all third party claims involving infringement of United States patents, copyrights, trade and service marks, and any other intellectual or intangible property rights in connection with the PERFORMANCES OR ACTIONS OF VENDOR PURSUANT TO THIS CONTRACT. VENDOR AND THE CUSTOMER AGREE TO FURNISH TIMELY WRITTEN NOTICE TO EACH OTHER OF ANY SUCH CLAIM. VENDOR SHALL BE LIABLE TO PAY ALL COSTS OF DEFENSE INCLUDING ATTORNEYS' FEES. THE DEFENSE SHALL BE COORDINATED BY VENDOR WITH THE OFFICE OF THE ATTORNEY GENERAL WHEN TEXAS STATE AGENCIES ARE NAMED DEFENDANTS IN ANY LAWSUIT AND VENDOR MAY NOT AGREE TO ANY SETTLEMENT WITHOUT FIRST OBTAINING THE CONCURRENCE FROM THE OFFICE OF THE ATTORNEY GENERAL. b) Vendor shall have no liability under this section if the alleged infringement is caused in whole or in part by: (i) use of the product or service for a purpose or in a manner for which the product or service was not designed, (ii) any modification to the product by the Vendor pursuant intellectual property right owned by or licensed to Customer, or (v) any use of the product or service by Customer that is not in conformity with the terms of any applicable license agreement. c) If Vendor becomes aware of an actual or potential claim, or Customer provides Vendor with notice of an actual or potential claim, Vendor may (or in the case of an Amendment Number 2 Contract Number DIR-SDD-1780Page 4 EXHIBIT 2 for the Customer the right to continue to use the affected portion of the product or service, or (ii) modify or replace the affected portion of the product or service with - infringing. Appendix A, Section 9, Vendor Responsibilities, subsection B. 8. is hereby restated in its entirety as follows: B. 1) VENDOR AGREES AND ACKNOWLEDGES THAT DURING THE EXISTENCE OF THIS CONTRACT, VENDOR SHALL BE ENTIRELY RESPONSIBLE FOR THE LIABILITY AND PAYMENXES OF WHATEVER KIND, ARISING OUT OF THE PERFORMANCES IN THIS CONTRACT. VENDOR AGREES TO COMPLY WITH ALL STATE AND FEDERAL LAWS APPLICABLE TO ANY SUCH PERSONS, INCLUDING LAWS REGARDING WAGES, TAXES, INSURANCE, AND WORKERS' COMPENSATION. THE CUSTOMER AND/OR THE STATE SHALL NOT BE LIABLE TO THE VENDOR, ITS EMPLOYEES, AGENTS, OR OTHERS FOR THE PAYMENT OF TAXES OR THE PROVISION OF UNEMPLOYMENT INSURANCE COMPENSATION OR ANY BENEFIT AVAILABLE TO A STATE EMPLOYEE OR EMPLOYEE OF ANOTHER GOVERNMENTAL ENTITY CUSTOMER. 2) VENDOR AGREES TO INDEMNIFY AND HOLD HARMLESS CUSTOMERS, THE STATE OF TEXAS AND/OR THEIR EMPLOYEES, AGENTS, REPRESENTATIVES, CONTRACTORS, AND/OR ASSIGNEES FROM ANY AND ALL LIABILITY, ACTIONS, CLAIMS, DEMANDS, OR SUITS, AND ALL RELATED ES, AND EXPENSES, RELATING TO TAX LIABILITY, UNEMPLOYMENT INSURANCE AND/TION IN ITS PERFORMANCE UNDER THIS CONTRACT. VENDOR SHALL BE LIABLE TO PAY ALL COSTS OF DEFENSE INCLUDING ATTOR DEFENSE SHALL BE COORDINATED BY VENDOR WITH THE OFFICE OF THE ATTORNEY GENERAL WHEN TEXAS STATE AGENCIES ARE NAMED DEFENDANTS IN ANY LAWSUIT AND VENDOR MAY NOT AGREE TO ANY SETTLEMENT WITHOUT FIRST OBTAINING THE CONCURRENCE FROM THE OFFICE OF THE ATTORNEY GENERAL. VENDOR AND THE CUSTOMER AGREE TO FURNISH TIMELY WRITTEN NOTICE TO EACH OTHER OF ANY SUCH CLAIM. Appendix A, Section 9, Vendor Responsibilities, subsection C. Vendor 9. Certifications, vii, is hereby restated in its entirety as follows: (vii) Vendor and its principals are not suspended or debarred from doing business with the federal government as listed in the System for Award Management (SAM) maintained by the General Services Administration; 10. Appendix A, Section 9, Vendor Responsibilities, subsection G. Responsibility for Actions, 2), is hereby restated as follows: Amendment Number 2 Contract Number DIR-SDD-1780Page 5 EXHIBIT 2 2) Vendor, for itself and on behalf of its subcontractors, shall report to DIR promptly when the conflict of interest disclosures under Article xvi of the Certification Statement of Appendix A to the RFO and/or Section 9.C. (xii), Vendor Certifications of this Appendix Ato the Contract change. Vendor covenants to fully cooperate with DIR to update and amend the Contract to accurately disclose employment of current or former State employees and their relatives and/or the status of conflicts of interest. Appendix A, Section 10, Contract Enforcement, subsection B. Termination, 2) 11. Absolute Right, is hereby restated in its entirety as follows: 2) Absolute Right DIR shall have the absolute right to terminate the Contract without recourse in the event that: i) Vendor becomes listed on the prohibited vendors list authorized by Executive Order #13224, "Blocking Property and Prohibiting Transactions with Persons Who C published by the United States Department of the Treasury, Office of Foreign Assets Control; ii) Vendor becomes suspended or debarred from doing business with the federal government as listed in the System for Award Management (SAM) maintained by the General Services Administration; or (iii) Vendor is found by DIR to be ineligible to hold this Contract under Subsection (b) of Section 2155.006, Texas Government Code. Vendor shall be provided written notice in accordance with Section 11.A, Notices, of intent to terminate. 12. All other terms and conditions of the Contract as amended, not specifically modified herein, shall remain in full force and effect. In the event of conflict among the provisions, the order of precedence shall be Amendment Number 2, then Amendment Number 1 and then the Contract. Remainder of Page Intentionally Left Blank Amendment Number 2 Contract Number DIR-SDD-1780Page 6 EXHIBIT 2 IN WITNESS WHEREOF, the parties hereby execute this amendment to be effective as of the date of the last party to sign, but in all events no later than March 21, 2014. SPRINT SOLUTIONS, INC. Authorized By: __ _ signature on file____________ (Sprint Ref. # BSG1403-0151) Name: ___Brian S. Miller_____________________ Title: _ __ Vice President Enterprise Sales______ _ Date: __3/18/14______________________________ The State of Texas, acting by and through the Department of Information Resources Authorized By: ___signature on file_____________ Name: ____Karen Robinson___________________ Title: Executive Director______________________ Date: ___3/27/14____________________________ Office of General Counsel: ___3/26/14__________ Amendment Number 2 Contract Number DIR-SDD-1780Page 7