Prison Phone Justice

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Page I

INMATE PAY TEU:PHONEAGREEMENT
This [nmatc Pay Telephone Agreement (the "Agreement") is made as of the lsi. d~y of NovemQ.~L 2003, by and
between Stale of North Dnkota Informatitm Technology Dcpartment("Customer") located at 60l> E. BOlllev~\r(1
Ave., D(,'pt. 112, Hi~marck, ND, 58505·0100 and Evercom Systems, Inc. ("Evercom") located at 8201 Tristar Drive,
Irving, Texas 75063.
1. Utilization of FlIcilit)'. The Customer, for and in consideration of the payment of the Collect and Pre-paid
Conmlissions (as hereinaflcr defined) and the services to be provided by Evcrcom, grants Evercom the exclusive right
and license to install and maintain an lmnate Telecommunicati om, Systems governing aU inmate ',ills, including local
and long di~tllnce traffic for collect calling and debit calling, and inlet-related hardware and software, (colltlctively
"Evercom &)uipment") within aU pre-existing and fUhLre jail and lor detention facilities (collecti vcJy, the "Facility"),
and hereby releases the Facility tor that purpose, upon the terms and conditions set forth in this AgrC(}lllCnL The
Customer ~ovenant5 and agrees to make the Facility available to Evercom for complete installation and operation of the
Equipment.
2. Compensation. In consideration of the right to install and operate the Equipment within the Facility;
8.

Evercom agrees to pay Customer 40% oftlle gross revenue (as defined here.in) earr.ed by Evercom through usc
of the Equipment to complete collect call$ from the Facility (tbe II Collect Conunission"); and

b.

Evercom agrees to pay Customer 25%) of the gross revenue (as defined herein) earned by Evercol11 through
use of the Equipment to complete prepaid calls of any type (the "Pre~paid Commis..<;ions").

c.

For purposes ofthis provision, the term "gross revenue" is defined as all charges billed by Evercom relating to
either collect callsin (a) above or prepaid calls in (b) above respectively, excluding any tax es. The Collect and
Pre-paid Commissions shall be paid to the Customer on a monthly basis in accordanc.e with this Agreement

d.

All telephone rates (the "Rates") charged by Evercom pursuant to this Agreement shall be as set forlh on
Exhibit A attached hereto.

3. }'ayment <lnd Aecouutinl/:.. The Collect and Pre-paid Commissions shall Ix: paiL! no later than sixty (60) days
foLlowing the month in which revem;.e,~ were recognized from the Equipment during the Term ofthis Agreement. All
Collect and Pre-paid Commissions pay1l1ent<; shall be fmal and binding LIpan the Customer unless written obje<:tion
thereto is received by Evercom within sixty (60) days of the date of the Collect and/or Prc-paid Commission check or
c.redit is issued.
4. Mllintcllllnce and Repair. During the tenn ofthis Agreement, Evcreom will repair and maintain the Equipment in
good operating condition, including without lim:tation, furnishing all parts and labor, at its sole cost and expense, un
such maintenance shall be concucted in a timely manner, (usually within 24 hours). The Customer shall pellll!t
employees or contractors of Evercom reasouable access to tbe Facility in order to service, repair and maintain the
Equipment. The ClstOITICr shaU notify Evercom of any misllse, destruction, damage or vandalism to ihe EqlJipment, as
soon as practicable after ascertaining the same. Evercolll, hy providing eq1,;ipment or service from third perty vendors
makes no representation or warranty with respect to slIch ser.. . ice or equipment and, unlc~s expressly stated herein,
makes no cOJ1unitment to t:1~intain or service such equipment hereafter, aU sllch arrangements should be made by
Customer and tl"ird pa~ty vendor. Equipment upgrades will be performed as outlined in Exhibit B.
5. LiabiUtv [nSUr1111ce. Evercom agrees to maintain comprehensive general liability ;nsurancc coverage having limits
of nOt less than S I,000,000.00 m the aggregate. The Customer agrees to provide Evercom with reasonable and timely
notice of any claim, demand or cause of action made or brought against the Customer ansing out of, or related to, the
utilization of the Eqllipment. Evercom shall have the right to defend any such claim, demand or cause of action at its
sole cost and expense and within its sole and exclusive discretion. 'I11C Customer agrees no! to compromise or settle
any c1aim or cause of action arising out of or related to th~ utilization of the Equipment >vithout tbe prior written
consent of Evercom. In no event shall the Customer be li<lblc for allY damage or destruction 10 any item (}f the
Eqldpmcnl.
6. Term of Agret~ml~nt.The ol)1igations of the parties Lnderthis Agreement are effective as of the d.1te hereof, but the

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[em: of this Agreement shall commence upon the d"tc of ex.ecution (the "Commencement Datl:"). This t\greement
,hall remain in force and effective for (tbrcl!) years from t'he Commencement Date (the "'Initial Term"). ·fhcrtafte.r,
unless written notice of a party's election nm to renew the Agreement is delivered to the other p<llty at least 90 days
prior to the cl1d of the lniti'll Telm or any renewal term, this Agreement shall automatically renew for up to tllree one
year (;'x.!cnsioos. If, because of strikes, riQ!.s, ',Vars or for any other reason, business operations at Ihe Facility shall be
interrupted for periods oflime other than as i~ customary for operutions conducted at the Facility, the expiration of the
lerm of this Agrecl1le'l;t shall be extended ror a period ohime equal to the period of such extraordinary interruption or

>itoppagc of b'l!~incss operations.
7. Even( of Default, Termination of Agreement. In the event either party defaults in the performance orany of its
obligations under this Agreement, the non-defauljng party shall give the defaulting paJ1y \vrillcn notice of default
setting forth with specificity the nature of the event of default. In the event the defaulting party fails 10 cure such event
of default within thiliy days from receipt of the notice of default, tlw non-defaulting party shu]] have the right to
temlinatc this Agreement and pursJ.c all other remedies availl1b~c to the non-defaultillg parly. either at law or in equity.
If the pcrlbrmanee of this Agreement or a,ny ohligation hereunder, is interfered with by reason of any circumstances
beyond the reasonable control of the parties, inclUding without limitation, fire. explosion, riots, civilllme:>1, power
failures, injunctions, or act" ofOod, then the party affected shall be excused from such performance 011 a day-to-day
basis to the extent of such intederence, proVided the party so affected shall usc rcasomloJe efforts to remove such causes
of no-performanct~. 111 the event any go·vemmt."I1tal mriff or regulation prevents EverCQm from providillg services, or
such t<trif£., Of regulations make C(lIllinua1ioJl of this agreement impractical for economic reasons or otherwise, then
EVCrC(IIll, at its sole di~cretion, muy tClminale this Agreement without liability. The Customer may terminate this
c.ontract effective upon delivery of vvritten notice to Evcrcom, or \)11 any I"ter date stated in the notice, if any license,
permit or cel1ificute required by law or rule, or by the terms of this contract, is for any reason denied, revoked,
susp~ded or not renewed. AllY termination ot'lhis contract for this reason shall be \l,rlthoutprejuJice to any obligations
or h<ibilitie.s of either party already accmed prior to termination. In the event of a termination of this Agreement for any
'!cason, the Customer agrees to aHa..... Evercorn access to the facility in order to n.:move the Equipment. EvercQm agrees
tn remove the Eqlllpmel1l within thirty days after termination of this Agreell1ent.

8. IlldeomHicatiou. EVERCOM shall dcicnd, indemnitY, and hold harmles5 the State of~orth Dakota, it" agencies,
ot1icers and employees (State), frol11 any and all claims of any nature, induding all costs. expenses and attorneys' fees,
that may in any manne:: result from or arise out ofthis agreement, except for claims resulting from 0;: arising out of the
STATE's sole negligence. The legal defrtnse provided by EVERCOM to the STATE under this provision must be free
of any confli ers of interest, even ifretention of separate legal counsel for the 81'A TE is necessary. EVEReOM also
agrees to deft.,'l1d, indemnify, and hold the STATE harmless for all costs, expenses and altomey~' fees inctmed in
establishing and litigating the indemnification C()vcrage pIovided herein. This obligation shal! continue after the
termin.ation ol'this agreement.
9. Autbority. Eac.h party to this Agreement warrants and represents thatlhey have the unrestricted right and rcqnisite
authority to enter into and execute this Ab'tcement, to hind the respective pany, and to authorize the installation and
operation of the Equipment
10 . ~QI:ic~~s. Any norice O[ demand under the terms ofthis AgreemenL or under any statute made by either party shall
be in \"Titillg and shall be given or rnade by rnail, :JOslagc prep~lJd, addressed to the respl:ctive p8rly as lisled Oil
signature page of this agreernent
.
II .l\'1iscellllRcous.

A. This Agn.>emenl shall be cOl1stmed 'llt'lder and is enforceable under the laws 1)1' the state where Evcrcom
services arc performed.
B. No waiver by ei1her party of <IllY event of default under Ihis Agreement sh<lLJ operate us a .." aivn of lmy
subsequent default under the lel1n<; of this Agrcemcnl.

C. If any pro~ision of this Agreement is held to be invalid or unenforceable, the validity or enforceability of

the other provisions shall remain unaffected.
D. This Agreement shall be binding upon and inure to the hene.fit of Evercom and the Customer, and their
respective S~lccessors and assigns.

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E. This Agreement may be executed in counterparts, each of which shaH be fully effective as an original, and all
of which together shall constitute one and the same instrument. This Agreement constitutes the entire
Agreement afthe parties. TIlt: rights and obligations ofthe parties shall be detennined solely from the terms of
this Agreement and any prior or contemporaneous oral agreements are superseded by and merged into this
Agreement.

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F. This Agreement can not be varied or mo<lified orally and can only be . . 'IDied or modified by a \\ITItten instrument

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signed by all parties.

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G. Evercom, at its sole cost and expense shall secure the state, county or federal governmental authority licenses

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required for the provision of services contemplated in this Agreement.

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H. During the term of this agreement, the Equipment installed in the facility pursuant to this Agreement shaH
remain the sole and exclusive property of Evetcom.

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ffEvercolfl is the first party to execute thig Agreement, then the Customer shall have until 5:00 p.m. (Central

Time) 90 days from the date set forth under Evercom'$ signature helow, to execute and deliver this Agreement
to Evercom, If the Customer has not executed and delivered this Agreement to Evercom \vithin the 90 day
period, then the offer made by bvercom to enter into this Agreement shall terminate and be null and void after
such lime, Evercom may also terminate the offer made by this Agre.ement prior to the end of the 90 day period
by writlcn notice tn the Customer, unless the Customer has previoLisly signed and delivered this Agreement to
Evercom.

Customer; Information. Tee
By:

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FAX 972 277 0699

FIR5lT AMENDMENT
TO
INMATE PAY TELEPHONE AGREEMEIST

This FIRST AMENDMENT ("First Amendment") is effective as of the Ist day 01'1<.<"" 2006 ("First
Amendment Effective Date") and amends and supplements that certain Inmate Pay Telephone
Agreement, daled as of November I, 2003 ("Agreement") by and between State of North Dakota
InfonTlation Technology Department ("Customer") and Evcrcom Systems, Inc. ("EVERCOM").
WHEREAS, Customer and EVERCOM desire to amend the Agreement
pursuant to the terms and conditions set forth herein; and

NOW, TIIEREFORF., in consideration of the mutual promises and covenants contained herein, the
parties agree as follows:

I.

Evercom will install an upgrade to the Equipment at the Facilft"y along with additional
applicatJons as morl:: particularly described in Exhibit A to this First Amendment.

2.

Section 6 of the Agreement shall be amended in its entirety as follows:
"6. Term of Agreemeot. The obligations of the parties under this Agreement are effective as of
the date hereof, but the term of this Agreement shall commence upon the date of execution (the
"Commencement Date"). This Agreement shall remain in force and effective for four (4) years
from the Commencement Date (the "Initial Tenn") Thereafter, unless written notice ofa party's
election not to renew the Agreement is delivered 10 the other party at least ninety (90) days prior
to the end of the Initial Term or any renewal term, this Agreement shallllutomatically renew for
up to two (2) one year (I-year) extensions. If, because of strikes, riots, wars or for any other
reason, business operations at the Facility shall be interrupted for periods of time other than as is
customary for operations conducted at the Facility, the expiration of the term of this Agreement
shall be extended fur a period of time equal to the period of such extraordinary interruption or
stoppage of business operations."

3.

Within thirty (30) days after the installation of the upgrade referenced in Section I above,
Everuom will pay Customer an advance payment of Commission in the amount of $35,000.00
(the "Prepaid Commission"). Evercom will recoup the Prepaid Commission at a rate of 50% of
the monthly Commission earned until the balance is paid in full. If this Agreement is terminated
for any reason other than Evercom's default, then Customer will refund any unearned portion of
the Prepaid Commission as of the date of the termination within fifteen (15) days after the date of
the termination.

4.

All teons and conditions of the Agreement not amended by this J<'irst Amendment remain in full
force and effect.

IN WITNESS WHEREOI<', the parties have executed this First Amendment as of the First Amendment
Effective Date by their duly authorized representatives.
STATE OF NOR1'H DAKOTA JNFORMAnON
TECHNOLOGY DEPARTMENT

EVERCOM SYSTEMS, INC.

By:

By:

Name:

Na

Title:
Date:

Date:

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__._._T_ ION:
Dig)tai CaIUI,IIJl.n.li~<:"-. Di'E,ital Catl Mana'ber (OeM" or the "System'-) Qrovides automatic Qlaceme{\l 1)( ca\\s by
inmates without Ihe need Itll' cunventional live Opercl.WT services. In addition. OeM pro\lides Ihe capability Iu [a)
monitor and record inmate calls, (b) mark certain numbers as private to disable the monitoring and recording
function, (c) automatically limit the duration of each call to a certain period designated by Evercom, \0) main\uill ea\\
detail records in accordance with Evercom's standard practices, (c) automatically shut the System on or off, alld (I)
allow free calls to the extent required by applicable law. Evercom will be responsible for all billing and collections
of inmate calling charges but may contract with third parties to perform such fllnctions. DeM will be provided at the
Facilities specified in the chart below.

Facility Name and Address ,

I

Department of Corrections
and Rehabilitation - Prison
Division
3100 East Railroad Ave.
Bismarck, NO 58501

Type orCalJ
Management
Service

Collect
Commission
Percentage

Revenue Base
for
Calculation of
Commission

DCM

40%

Gross

Payment Address

State of North Dakota
Infonnation Technology
Department
Department of Corrections
and Rehabi litation - Prison
Division

,

600 East Boulevard Ave.

Department 112
-~--~

._-

Bismarck, ND 58505-0100
._---

PREM ISES BASED CALL MANAGEI\1 [NT SYSTEM SERVICE LEVEL AGREEM ENT:

Evcrcom agrees to repair and maintain the DCM System (inclusive of the SECUREworkstation defined below) in
good operating condition (ordinary wear and tear excepted), including, without limitation, furnishing all parts and
labor. All SllCh maintenance shall be conducted in accordance with the service levels in Items 1 through 10 below.
All such maintenance ~all be provided at Evereom's sole cost and expense unless necessitated by any misuse of, or
destruction, damage, or vandalism to, the System by Customer (not inmates at the Facilities), in which case, EvercQm
may recoup the cost of such repair and maintenance through either a Commission deduction or direct invoicing, at
Ellcreom '5 option. Cuslomer agrees to promptly notify Ever-com in writing after discovering any misuse of, or
destruction, damage, or valldalism to, the System. If any portion of the System is interfaced with other devices or
software owned or used by Customer or a third party, then Evercom shall have no obligation to repair or maint.1in
such other device~ or software. This SERVICE LEVEL AGREEMENT does not apply to any provided
Openworkstation(s) (see below). For the services contemplated hereunder, Evercom may provide, bnsed upon lhe
facilities requirements, twu types of workstations (personal computeridesktop/laptop/temlinal):
(i) The "SEClJREworkstation" is designed to sEitisfy fucilities that require a secure direct link Hnd fulllechnical
support of (he Applications. Utilizing the Windows XP operating system, the SECUREworkstation is

subject to full technical and field support services described herein, access to all applicable Applications
llnd restricted user rights for facility personnel. No other third pl:t11y software may be installed 011 the
St::CU REworkSlalion; and
(ii) The "Openworkstation" is an open non-secured workstation which penn its administrative user rights for
facility personnel and allows the facilities an ability to add additional third party software. Ownership of
the Openworkstation is transferred to the fucility along with a three-year product SUPPO!1 plan with the
hardware provider. Evercom has no obligation to provide any technical and field support services for an
Openworkstati()Il. CUSTOMER IS SOLELY RESPONSJDLE FOR THE MAINTENANCE OF ANY
O/'£NWORKSTATION(S)."
1. Outag~ 8£PJl[t...;. Technical Suppon. Ir either ofthe follQwing occurs: (iI) Custorn~r experience~ a System outage
or malfunction or (n) the System requirt:s maintenance (each a "System Event"), then Customer will promptly report
the System Evelll to Evercom's Technical Support Department ("Technical Support"). Customer may contact
Technical Support 24 hours a day, sevcn days a week (except in lhc event of planned or emergency outages) by
lelephone at 866-558-232J, by email atTcchnicaISupport@Evercom.net. ur by facsimile at 800-368-3168. Evereom
will provide Customer commercially reasonable notice, when practical, prior to any Technical Support outage. For
Customcr's calls to Technical Support. the average monlhly call answer lime is generally 120 seconds or less,
provided huwever. that Evercorn will endcavo~ (but will [lot be obligated) to achieve an average monthly call answer
time of 30 seconds.

2. Priority Classifications. Upon receipt of Customer's report of a System Event. Technical Support will classify
the System Event as one of the following four priority levels:

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.. Priori ty I"

.. _------

60% or more of the functionality of lhe System is advernely affected hy the System
Event

.~._._

"Priority 2"

30%-$9% ofthe functionality of the System is adversely affected by the System Event

"Priority r
~-.-_

..-_p_·._··-·_.._.-.· - _5."::o-3?"(o. 0!-_~_c.f~~~i~~~it;Y~!_~~~~7stem is adversely atlected by the System Event
Less than 5% of the functionality l}1' the System is adversely affected by the System

"Priority 4"

Event

_....

3. Response Times. After receip[ notice of lhe System Event, Evercorn will respond to the System Event within
the following time periods with a 95% or greater rate of accuracy:
Priority 1

4 hours

Priority 2

12 hours

Priority 3

24 hours

Priority 4

36
hours
_......

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4. Response Process. In all instances, Technical Support will either initiate remote diagnosis and correction of the
System Event or dispatch a field technician to the Facility (in which case the applicable regional dispatcher will
contact Customer with the technician's estimated time of arrival), as necessary.

S. Performance of Service. All of Evercom's repair and maintenance of the System will be done in a good and
workmanlike manner at no cost to Customer except as may be otherwise set forth in the Agreemcm. Any ;equested
modification or upgrade to the System that is agreed upon by Customer and Evercom may be subject to a charge as
set forth in the Agreement and will be implemented within the lime period agreed by the parties.
EscalatjQ!LCo!!!acts. Customer's account will be monitored by the applicable Territory Manager and Regional
Service Manager. In addition, Customer may use the following escalation list if Evercom's response time exceeds
36 hours: first to the Technical Support Manager or Regional Service Manager, as applicable, then to the Director of
Field Services, then to the EKecutive Director, Service.
6.

Notice ofResolutiQP. After receiving internal notitication that a Priority I System Event has been resolved, a
member of Evercom's management team will contact Customer to confirm resolution. For a Priority 2 or 3 System
Event, a member of Evercom's customer satisfaction team will confirm resolution.

7.

S. Monitoring. Evercom will monitor Evercom's back office and validation systems 24 hours a day, seven days a
week.

Required IGR. Customer's is responsible for providing a dedicated isolated grounded receptacle ("lOR") for
usc in connection with the primary System. Upon r~u(;,'St Evercom will provide Customer with the specifications for
the lOR. If Customer are unable to or do not provide the (GR, then Evercom will provide the lGR on a time and
materials basis at the installer's then-current billing rates, provided that Evercom is not responsible lor any delay
caused by Customer's failure to provide the IGR.

Q.

10. End-User Billing Services and Custvmer Care. Evercom's Correctional Billing Services division will maintain
dedicated customer service representatives to tlandlc end-user issues such as call blocking or unblocking and setting
up end-user payment accounts. The customer service represenlatives will be available during reasonable business
hours
Monday
thtough
Saturday
by
telephone
at
800-844-6591,
by
cmail
at
Support@CorrectionaIBiliingServices.com, and by facsimile al 800-578-2627. In addition, Evercom will mijintain
an automated inquiry system on i1 loll-free customer service phone line that will bc avai~able to end-users 24 hours u
day, 7 days a week to provide basic information and handle most routine acti\liti~'S. Evcrcom will also accept
payments from end-users by crcdiL card, check, and cash deposit (slIch as hy money order- or Western Union
tmnsfc;).

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DI(;ITAL CALL MANAGER VALUE-A()D FE.ATURES
l)ESC~l!:TlQN:

3-Way DeLee!. On DCM. 3-Way Delect provides the capability fOr Customer Lo mark, warn, or disconnect 3-way
calls.
Administrative Assistant. On DCM, Administrative Assistant allows Customer to access a web page interface to
view call detail records. data regarding the Commission. and service tickets and to post documents to be shared
between Customer and Evercom.
DCJy1 Debit. On DCM, OeM Debit will be provided at the Facilities specilied in the chart belllw. Even;o!ll ....ill
pay Customer a commission (such amount being a part of the Commission) in the amount of the applicable DCM
Debit Commission Percentage (as specified in the chart below) of the applicable revenue base (as specified in the
chart below) that Evercom earn through the completion of any calls placed from the Facilities that are paid from
designated prepaid debit accounls, the records ofwhicl1 are stored in the System.
Facility Name and Address

Department of Corrections
and Rehabililation .. Prison

Type of Call
Management
Service

DCM Debit
Commission
Percentage

Revenue Base
for
Calculation of
Commission

DeM

4()~"

Gross

Payment Address

State orNolth

Da~Ola

3
bJlLinitials

initials

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Division
3100 East Railroad Ave.
Bismarck, NO 58501

lnfonnatioll Technology

Department
Department ofCorrcclions
and Rehabilitation ... Prison
Division
600 East Boulevard Ave.

Department I 12
_L

.........L_ _.

.••

•.•_ _

Bismarck, NO

58505~~100

J

COMPENSATION:
The optional features above are provided to Customer at no charge.

OIGITALCALL MANAGER PREMIUM FEATURF.S
OESCR.\pIION:

Visitation Phone Monitoring and Recording ("V PM"). On DCM, VPM employs digitlll sensor processor technology
to allow voice recording and monltoring of tile single-line telephones used in the visitation area.
COMPENSATION:

The optional features above are provided to Customer at no charge.
DIGITAL CALL MANAGER END-USER PUNDED FEATURES
DE..')CRIPTION:

AdvanceConnect. On OCM, AdvanceCunneCl allows inmates' Friends and families to establish a prepaid account
with Evcrcom to fXly For calls they receive from inmates.
CQlledConnecl. On DCM, CollectConnecl allows inmates' friends and families to pay for collect calls immediately
after the call with a credit card or similar method.

Courtesy Call. On OCM, Courtesy Call facilitates communication between inmates and their friends and families by
notifying a prepaid account holder when the balance in the account approaches the minimum limit.
DebitConneCl. On OCM, DebitConnect allows inmates to ut>e funds from their trust tlllld accounts to pay for calls
they make from the Facilities.

£.fl£ompass. On OeM. Encompass is " patent-pending enabler that Facilitates quick estllblishmerlt of accounts b)'
friends and families of the inmates.
First-(~aIlConne"'.

On OCM, First-CallCrmnecl allows an inmate's tIrst phone call from (l Fa::ility to be connected
lor a 5hol1 duration at no cost to the inmate or the called party. Such promotional calls are not commissionable.

COMPEI\SATlON:
The optio!lal features above arc provided

10

Customer at no charge and may be funded from end-ut>er fccs.