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Annexure VII Sample Annual Maintenance Contract for Hardware items This agreement is made for Annual Maintenance

Contract for Hardware Items installed in all LIC Offices throughout India Between LIFE INSURANCE CORPORATION OF INDIA, Central Office, IT Department, Jeevan Seva Annexe, S.V. Road, Santacruz (W), Mumbai- 400 054, herein after referred to as LIC, the customer of one Part AND ______________________________________________________________________ ________________________________________________________________ herein after referred to as Vendor, which expression shall include its assigns and successors, of the second Part. TERMS AND CONDITIONS OF THE AMC I) Scope of AMC 1) The contract signed by LIC will be valid for all systems supplied and installed by the vendor vide above referred tender for Supply, Installation, Commissioning and Maintenance of Oracle Servers, Storage and Backup Solution at various locations of LIC. No separate contracts are required to be entered into by the vendor with any of our other offices for the AMC of the hardware specified under this tender. 2) The Vendor who has originally supplied the hardware will have to immediately undertake the AMC for all the hardware items coming out of warranty, unless LIC decides otherwise. 3) The Vendor has to carry out on-site comprehensive maintenance of the Computer Systems (Systems include Servers, Storage devices, FC switches, Tape Library etc.). 4) All the tools, test equipment and fixtures etc. (if any) required for the on-site comprehensive maintenance of equipments, shall be provided by the AMC Vendor. 5) During the AMC period, the Vendor will be required to keep the system in 100% working condition. In the event of replacement of any part of the system, it should be done with a part of equivalent or higher configuration which is compatible with the system. However, prior approval for the higher configuration should be obtained. 6) The Vendor will have to hand over the system in 100% working condition on the termination or end of the Contract. Any Breakdown call that has been reported before the termination of the Contract will have to be rectified by the Vendor before handing over the systems to LIC. 7) LIC of India reserves the right to make amendments to the text of the contract or extend or reduce the validity of this contract. 8) LIC reserves the right to terminate the Contract with one months notice, without assigning any reasons and decision of LIC in this matter will be final. II) Repair outside the Office premises 1) Whenever any Hardware equipment/ component is taken out of an LIC site for repair, the same hardware equipment/ component has to be returned after repair

unless it is declared to be irreparably damaged. When any Hardware equipment/ component is taken out of any LIC Office for repair, such shifting should be done with the prior permission of the Authorized official of LIC, and the Vendor shall make all arrangements for removal of the hardware equipment/ component, its transportation to the workshop and back to LICs site and its reinstallation. Insurance of such hardware equipment/ component also has to be arranged by the Vendor and all expenses for the above shall be borne by the Vendor. The Vendor shall hand over the systems in 100% working condition after repair/ maintenance/ rectification. 2) Any Hardware equipment taken out of LIC Office for repair should be returned within 30 days duly repaired. When any hardware item is taken out for repair and is not returned, duly repaired, within 30 days, breakdown will be charged for number of days in excess of 30 days, in spite of provision of stand by equipment by the vendor. 3) Whenever any Hardware equipment is taken out of an LIC Office for repair, Vendor shall reinstall the same machine after repair unless it is declared to be irreparable and report submitted as per clause XII.6. III) Technical Support: 1) The Vendor has to extend technical support whenever required and suggest changes or carry out improvements in system features and software configuration changes, if necessary. 2) In the process of providing technical support, if required, Vendor may have to carry out joint resolution of problems with other Vendors/OEM. 3) The Vendor will be required to install any Open source software/ Drivers etc. free of cost as and when required by LIC. 4) Any problem relating to the Pre-loaded Operating System such as Windows, Linux, Sun Solaris etc. shall be attended to by the vendor and reloading of such software shall be done by the Vendor wherever required, without any extra cost to LIC of India. 5) Wherever any system has to be shifted from one LIC location to another, the Vendor is required to uninstall/ reinstall and maintain the system/s at the new location, without any extra cost to LIC of India on account of reinstallation. IV) Support for Upgradations/ Feasibility Support : 1) The Vendor has to provide, at no additional cost to LIC, support for any feasibility study and implementation of subsequent upgradation/ changes in system configuration proposed by LIC. 2) In every case where LIC places orders for upgrade of Servers, the Vendor shall load the Operating System as per LICs instructions, without any cost to LIC. V) Stocking of Spares/ Immediate replacement of faulty parts/ equipment: 1. Sufficient spares should be stocked to meet the SLAs. 2. Stocking of spares: Vendor should provide a list of spares kept in stock to Asst. Secretary (IT) of CO, Hardware section. 3. Whenever any complaint for the parts/components of the Computer Hardware/ Peripheral is logged by LIC, the service engineer of the Vendor who attends to the complaint must invariably carry a spare of such part of the Hardware and should replace the same immediately, if required. 4. In the event of replacement of any part of the system, it should be done with a part of equivalent or higher configuration which is compatible with the system, subject to prior approval of LIC, Central Office for the higher configuration.

VI) Point of Contact/ Regular meetings The Vendor shall nominate a specific person as the single point of contact. The Vendor shall submit the name and contact details, including address, telephone number, mobile number, FAX number/email address of this contact person and the service engineers at each of these locations. In addition to single point of contact, the Vendor should also provide the contact details of customer support officials to whom calls should be escalated. The Vendor has to provide LIC with details of an escalation matrix upto three levels, mentioning names, designation and contact details of the officials concerned. VII) Access of Service Engineers to the machines 1. Service Engineers/Representatives of the vendor shall invariably carry their identity cards with them, without which they will not be allowed access to any Hardware of LIC. 2. Service Engineers of the vendor shall have access to the Computer Systems/ Peripherals only after obtaining prior clearance from LICs authorised officials. No component of the System/data/ log information will be taken out of LIC without prior clearance from LICs authorised Officials. 3. During the AMC period, the vendor/ vendors engineers may have access to confidential information of LIC for the purpose of resolving any issue covered by this Contract. The vendor or engineer shall not disclose at any point of time to any other person/ third party the information so received and shall use the same degree of care to maintain the confidentiality of the information as if the information is their own. Also the vendor may use the information only for serving LICs interest and restrict disclosure of information solely to those employees of vendor having a need to possess such information in order to accomplish the purpose stated above and also advise each such employee, before he or she receives access to information, of the obligation of vendor under this agreement and require such employees to maintain these obligations. Violation of this will lead to legal action, recovery of damages and blacklisting of the vendor. VIII) List of items under AMC

1. IT Dept, Central Office will communicate to the Vendors, details about the systems to be covered under AMC at different locations. 2. The Vendors should maintain proper Inventory of various systems provided and/or maintained by them at various locations. A copy of such Inventory under AMC reflecting the hardware cost and the Quarterly Maintenance charges payable to the Vendor shall be submitted by the Vendor along with the Invoice. This will be subject to verification by Central Office. IX) Terms of Payment 1. Quarterly Maintenance Charges (QMC) will be paid by the Central Office only after the expiry of each quarter. However exact process will be finalised and communicated to the selected vendor. 2. The maintenance charges for equipment coming out of warranty during the validity of the AMC will be on pro-rata basis. 3. Penalty as per the Breakdown charges defined in SLA will be deducted till the time stand-by equipment is provided. 4. Breakdown charges/ other deductions, if any, for a particular quarter will be deducted from the QMC payment for that quarter and the balance from any future payments due to the vendor. Performance Bank Guarantee(s) will be invoked for recovery of further outstanding amount, if any.

5. Income-tax, surcharge or any other taxes levied by the government from time to time shall be deducted at source from the AMC amount payable. Service tax, as applicable at the time of billing will be paid along with AMC charges. 6. Where any State Government levies State Sales Tax on AMC rates as per the statutory law, LIC shall reimburse the amount against submission of original receipts along with the AMC invoice. X) Service Level Agreement (SLA): The systems should be maintained in 100% perfect working condition. Break down resolution: All breakdown calls are to be resolved within 4 hours of reporting. If the breakdown issue cannot be resolved within 4 hours, a compatible System of equivalent or higher specifications has to be installed within that period. The breakdown penalties are as mentioned below. Breakdown Resolution Period per Call Resolved within 4 hours / standby provided within 4 hours NIL Penalty

Not resolved within 4 hours / @ Rs 1,000 per completed hour standby not provided within 4hours from the time of intimation till (for the first 24 hours ) resolved or stand by is provided Not resolved / standby provided. (after the first 24 hours ) not @ Rs. 24,000 + Rs 1,250 per completed hour thereafter till resolved or standby provided.

a. Maximum penalty is restricted to 25% of the cost of the hardware. b. If any hardware has a hardware failure on four or more occasions in a

quarter, it shall be replaced by equivalent new equipment by the vendor at no cost to the LIC of India within 50 days from the date of last failure. Till the replacement is provided, the original equipment has to be kept in running condition or else a standby provided and all services restored. However, penalties for breakdown as per SLAs defined in the tender will be applicable. c. The penalties as above will be recovered from any payment due to the Vendor. XI) Breakdown Charges and Complaint Resolution Time Breakdown charges - Penalty for breakdown for various hardware items is as defined in SLA clause X XII) Partial/ Full damage to Hardware 1. If the damage to the hardware is due to the power fluctuations or physical damage due to mishandling by LIC personnel or the damage by external factors, LIC would bear the cost of the parts damaged but the onus of proving this will be on the Vendor. However, the Vendor will be required to provide immediate




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system/ solution as standby with same configuration or higher and with all services restored as if it is a normal breakdown. In case of Partial/ Full damage or loss of the equipment due to reasons beyond the control of LIC, like Theft, Fire etc, the Vendor should be in a position to supply working standby equipment with same configuration or higher with all services restored, as if it is a normal breakdown. In both the cases mentioned above in XIII.1 and XIII.2, fresh order will be placed by LIC with the Vendor for the supply of the new hardware against the lost/ damaged equipment/ component. Monthly rental of 5% of basic Hardware cost will be payable to the Vendor for the equipment supplied as standby. If the Vendor does not provide standby equipment, the penalties for breakdown as per SLAs will be imposed. Service Engineers/ Representatives of Vendor shall invariably carry their identity cards with them, without which they will not be allowed to access LICs Systems. Service Engineers of the Vendor shall have access to the Computer Systems/ Backup Solution only after obtaining clearance from LICs authorized officials. No component of the System/ data/ log information will be taken out of LICs premises without clearance from LICs authorised Officials. When stand by machine breaks down, and then normal breakdown penalty as per SLA will be applicable. In case of damage of hardware due to flood/fire/power fluctuation etc, and also when the repairing is on chargeable basis, vendor should provide stand by machine immediately and should give a report with in 2 days of intimation of breakdown regarding the component/hardware to be repaired on chargeable basis or damaged permanently If the vendor has not submitted the report with in 2 days, additional penalty will be charged as per following table

Penalty for non submission of report for breakdown as defined as clause above 2-5 days 25,000/- per day Beyond 5 days 50,000/- per day & the rent on standby machine will cease. The rent will start after the submission of report.

7. Also AMC for the Lost/Damaged equipment shall cease immediately after the submission of the report of the Engineer declaring the machine as irreparable as defined in (6) above. XIII) Miscellaneous Conditions: 1. Assignment: The Vendor shall not assign in whole or in part, the obligations to perform under the contract, to any third party except with prior express consent of the ED (IT/BPR), Central Office, Mumbai. 2. Limitation of liability: Except in cases of criminal negligence or wilful misconduct and in case of infringement of intellectual property rights, both parties shall not be liable, whether in contract tort or otherwise, for any indirect or consequential loss of damage, loss of use, loss of production or loss of profits or interest costs, provided that this exclusion shall not apply to any obligation of supplier/vendor to pay liquidated damages to the Corporation and the aggregate liability of both the parties whether under the Contract, in tort or otherwise, shall not exceed the total AMC Contract price

with LIC under this Contract provided that this limitation shall not apply to the cost of repairing or replacing defective equipment. 3. Disputes: In the event of any dispute or disagreement over the interpretation of any of the terms herein above contained or claim of liability the same will be referred to an arbitrator mutually appointed by both the parties, whose decision shall be final and binding upon both the parties. Such reference shall be deemed to be a submission to arbitration under the Arbitrations and Conciliations Act 1996. The venue of arbitration shall be Mumbai. Subject here to the court in Mumbai shall have exclusive jurisdiction to the exclusion of all other courts. Dated at this day of 20 .


SIGNED, SEALED AND DELIVERED BY Signature of LIC official with Seal Witness: Signature Name Designation

Signature of Vendor Representative with Seal Witness: Signature Name Designation