FUJ00000485 - Supplemental Agreement (POCL & ICL Pathway), Change Control Notice 550, 20 August 1999 re CSR Operational Trial Review Period

Evidence on official site

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THIS SUPPLEMENTAL AGREEMENT, being Change Control Note (CCN) 550, is made
the 20th day of August 1999

BETWEEN:

(1)

Post Office Counters Ltd whose registered office is situated at
Gavrelle House, 2-14

Bunhill Row, London EC1Y 8HQ (“POCL”); and

(2) ICL Pathway Limited whose registered office is at 26 Finsbury Square,
London EC2A
1DS (“the Contractor”)

RECITALS

WHEREAS :

(A) This Supplemental Agreement is supplemental to the Codified Agreement
between the parties dated 28th July, 1999 and constitutes CCN 550 of
that agreement.

(B) The Contractor and POCL have been carrying out the Operational Trial
and the other Acceptance Procedures in accordance with the Codified
Agreement.

(Cc) It is agreed that as at the end of the CSR Operational Trial Review

Period (16 August 1999) there were:-

9 faults (the “Agreed Category B Faults”) which both parties agree

are medium

severity (category (b)) faults (A.I.
390, 395, 314 and 408);

342, 361, 371, 211, 372,

3 faults (the “Disputed Category A Faults”) which the Contractor
considers to be category (b) faults but which POCL believes are

high severity (category (a)) faults (A.I.’s: 376, 298 and 218);

2 faults (the “Disputed Category B Faults”) which the Contractor
considers to be of

low severity but which POCL believes are category (b) faults

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s: 378 and 391);

1 alleged fault (the “Unagreed Fault”) which the Contractor
believes is not an Acceptance Incident but which POCL believes is

a category (b) fault (A.I.: 369)

(together the “Outstanding Faults”).

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(D) It is agreed that there is no CSR Acceptance Specification in respect

of which there are more than 10 category (b) faults.

(E) Under paragraph 2.1 of Schedule All to the Codified Agreement
(“Schedule All”), four conditions for CSR Acceptance have to be
satisfied. The parties agree that the CSR Acceptance Tests have been
carried out and that the CSR Core Observation Period and the CSR
Operational Trial Review Period have expired. If the Contractor is
correct that
the Disputed Category A Faults are of medium severity then the
thresholds in paragraph 2.2 of Schedule All of the Codified Agreement
have been met. The remaining
condition for CSR Acceptance is that a timetable has been agreed to

resolve all outstanding category (b) faults.

(F) If, as at the end of the CSR Operational Trial Review Period, any one
of the Disputed Category A faults is a category (a) fault then CSR

Acceptance has not been achieved as

at the end of the CSR Operational Trial Review Period.

(G) If, as at the end of the CSR Operational Trial Review Period, a
timetable has not been agreed between the parties to resolve all
outstanding category (b) faults, then CSR Acceptance has not been
achieved as at the end of the CSR Operational Trial Review Period.

Such a timetable has not been agreed.

It is Agreed as follows:

1. CSR Acceptance

1.1 The parties agree that CSR Acceptance was not achieved as at the end

of the CSR Operational Trial Review Period.

1.2 Under paragraph 3.1 of Schedule All the Contractor is entitled to a
period of three
months from 16th August 1999 in which to remedy the outstanding
defaults at its own expense (subject to paragraph 6.9 of Schedule All
if applicable) and to re-submit the
Core System Release in its entirety for the second CSR Acceptance

Test.

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Remedy of Outstanding Faults

With a view to facilitating the obtaining of CSR Acceptance in the
Second CSR

Acceptance Test, the parties agree as follows:

In the period between the date of this Agreement and 175th September
1999 (the

“Limited Trial Period”), the parties will set up and conduct a
programme of joint

workshops for the purpose of agreeing (to the extent not already

agreed) :-
(i) resolution plans for the Agreed Category B Faults, the Disputed
Category A

Faults, the Disputed Category B Faults (if agreed or determined
to be category
(b) faults), and (if appropriate) the Unagreed Fault; and

(ii) a single timetable for resolution of outstanding category (b)
faults (including any Disputed Category A Faults determined to

be, or recategorised as, category (b) faults).

The joint workshop will be chaired by Keith Baines of POCL and Tony
Oppenheim of the Contractor and will be charged with the production
of agreed resolution plans, the agreement of a timetable for their
implementation, and general project management of

the resolution process.

Agreement as to resolution of faults having been hampered by
differences as to the

data, the parties will agree as soon as possible within the Limited
Trial Period an appropriate set of measures (including data gathering

and testing) to determine:

the extent of the disputed faults and

the efficacy of any agreed resolution plans.

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The Contractor shall make available to POCL as soon as possible all
data available to

the Contractor relevant to any of the Outstanding Faults, including,
without limitation, all system recorded data relating to the
incidence of rebooting of counter terminals

(relevant to AI 298).

The parties will involve Peter Copping as Expert in the activities
referred to in this paragraph 2. There may be occasions on which the
Expert is asked to determine an

issue as between the parties in accordance with the provisions of
Schedule All (for example he may be required to determine the status
of the Unagreed Fault) but

otherwise (save as expressly contemplated in this letter) his role
will be as facilitator and adviser to the parties in their efforts to
achieve successful resolution of outstanding

issues.

Second Acceptance Test

The provisions of Schedule All relating to the Second Acceptance Test
shall be varied

as follows:-

Notwithstanding paragraph 3.1 of Schedule All, the only elements of
the Core System Release required to be re-submitted for testing in
the Second CSR Acceptance Test

shall be those relating to the Outstanding Faults.

The following faults may be raised as Acceptance Incidents in
relation to the Second

CSR Acceptance Test:-

3.2.1 any fault arising upon the re-testing referred to in paragraph

3.1 above;

3.2.2 where any corrective work is carried out by Pathway in relation
to any of the Outstanding Faults, any fault which may be caused
by that corrective work or

may come to light only as a result of that corrective work; and

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3.2.3 (subject to paragraph 3.3 below), any other substantive fault
(a “Substantive
New Fault”) which arises in the live environment prior to CSR
Acceptance and which in the reasonable opinion of Keith Baines
or John Meagher is material in

the context of CSR Acceptance.

All such which faults shall be categorised according to paragraphs 7.1(a),
(b) and (c) of
Schedule All.

3.3. The parties agree the following in relation to Substantive New

Faults:-

3.3.1 no fault which was observed and categorised as a fault prior to
the end of the
CSR Operational Trial Review Period shall be raised as a
Substantive New Fault thereafter unless, in the reasonable
opinion of POCL, the nature of the fault
shall have changed or its effect, impact, seriousness or
frequency shall have become greater since the end of the CSR
Operational Trial Period, in each case
so as to have, in the reasonable opinion of POCL, a material

adverse effect on POCL’s business or operations;

3.3.2 no Substantive New Fault which is categorised as a category (b)
fault shall

count towards the threshold in paragraph 2.2(ii) of Schedule

3.3.3 notwithstanding paragraph 2.1(iv) of Schedule All, the failure
to agree a
timetable to resolve a Substantive New Fault which is a
category (b) fault
arising after 3 September 1999 shall not prevent CSR

Acceptance; and

3.3.4 for the avoidance of doubt CSR Acceptance will not occur if

there is a

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a

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Substantive New Fault which is categorised as a category (a)

fault.

If upon CSR Acceptance there remains any Substantive New Fault which
is a category

(b) fault arising after 31 September, 1999 and in respect of which a
timetable has not

been agreed for its resolution, the parties shall agree such a
timetable by 15th

November, 1999, in default of which either party shall be entitled to
request the Expert to specify such a timetable, which shall then be

binding on both parties.

If by 17% September, 1999 there remains any Substantive New Fault
which is a category (b) fault reported to the Contractor on or prior
to 34 September, 1999 and in respect of which a timetable has not

been agreed for its resolution, POCL shall not withhold its agreement
to the timetable proposed by the Contractor if the Expert shall have

stated in writing, prior to CSR Acceptance, that:-

3.5.1 the Contractor’s proposed rectification plan is in the Expert’s
opinion likely to resolve the Substantive New Fault by the date
specified by the Contractor

therein; and

3.5.2 resolution of the Substantive New Fault by that date would, in
the Expert’s
opinion (having listened to the representations of both
parties), be likely to mean that the Substantive New Fault
would not have a material adverse effect on POCL’s business or

operations.

POCL warrants that none of its employees or contractors directly
involved in the CSR Acceptance process is aware of any fault in
relation to the Core System which has not already been reported to
the Contractor and which that employee or contractor knows would
constitute a Substantive New Fault, categorised as category (a) or

category (b), if and when so reported.

Roll out

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4.1 The parties agree that Roll out shall not commence until authorised
by the Release Authorisation Board in accordance with paragraph 4 of
Schedule All.

4.2 Notwithstanding paragraph 4.1 above, the parties agree to install the
Core System in additional Outlets as follows:-

In_the week commencing Approximate Number of Outlets

31st August, 1999 one (Borough High Street)

6th September, 1999 60

13th September, 1999 90

4.3 I£ by 10th September, 1999 the parties agree that sufficient progress
has been made in resolving the Outstanding Faults (and any other
outstanding category (a) or (b)

Acceptance Incidents) the parties may agree to install the Core
system in further Outlets as follows:-

In_the week commencing Approximate Number of Outlets

20th September, 1999 158

27th September, 1999 178

4.4 I£ CSR Acceptance has not been achieved by 24th September, 1999 the
Core System shall not be installed in any further Outlets (in
addition to those referred to in paragraphs 4.2 and 4.3 above)
pending CSR Acceptance and authorisation of National Rollout by
the Release Authorisation Board.

4.5 In the event that CSR Acceptance is not achieved by 15 November

1999, the
Contractor shall, without prejudice and in addition to all the other

consequences thereof under the Codified Agreement (including its

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schedules), indemnify POCL on demand against all costs and expenses
reasonably incurred by POCL which POCL would not
have incurred but for having agreed to install the Core System in the

further Outlets referred to in this Clause 4.

Notwithstanding paragraph 4.1 above, following authorisation of
National Rollout by the Release Authorisation Board, all Outlets in
which the Core System shall have been successfully installed prior to
such authorisation shall be taken into account when calculating the
number of Outlets to which the Core System shall have been rolled out

for the purposes of the Codified Agreement.

Release Authorisation Board

It is agreed that the Release Authorisation Board shall meet
immediately following the meeting of the Acceptance Board at which

CSR Acceptance is achieved.

There will be a preliminary meeting of the Release Authorisation
Board prior to CSR Acceptance at which POCL’s readiness for Roll out,

and in particular any impact thereon

of any plans for rectification of Outstanding Faults, shall be
discussed and the appropriateness of proceeding with the planned CSR
Acceptance date of

24% September will be determined.

Immediately following the meeting referred to in paragraph 5.2 above,
there will be a preliminary meeting of the Joint Acceptance Board to
confirm or amend the planned

date for the formal meeting of the Joint Acceptance Board (24%

September, 1999).

Future Delays

For the purposes of Clause 606.2.1 of the Codified Agreement any
delay in Acceptance

or Rollout of the Core System caused by the Default of POCL shall be
disregarded to

the extent that the aggregate duration of all such delays does not

exceed fourteen days.

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10

Timetable

The parties shall use their reasonable endeavours to comply with the

timetable set out in the Appendix to this Agreement.

Miscellaneous

Except to the extent expressly amended by this Agreement the
provisions of the Codified Agreement and its schedules shall

continue unamended and in full force and effect.

Words and expressions defined in the Codified Agreement shall bear

the same I meanings when used in this Agreement.

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25% August,

6th September,

gth September,

1ote

17m

2ist

24th

September,

September,

September,

September,

1999

1999

1999

1999

1999

1999

1999

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Appendix
Timetable
First Workshop

Workshop to consider, inter alia, any Substantive New

Faults reported on or prior to 34 September 1999

Review of progress by David Miller and Richard

Christou

Pock—dDecision on implementation of outlets during w/c

20% and 27** September 1999.
Last Workshop

Pre-meetings of Release Autho

and Acceptance Board

Planned date for Release Authorisation Board and

Acceptance Board

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12

IN WITNESS WHEREOF this Supplemental Agreement has been executed on behalf

of the parties as follows:-

Signed by )
for and on behalf of )

POST OFFICE COUNTERS LTD )

in the presence of:- )
Signed by )
for and on behalf of )

ICL PATHWAY LIMITED )

in the presence of:-

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13

CHANGE CONTROL NOTE

ID: PWY_CCN_550. CCN:0550a Create Date: 355
Status: APPROVED Originator: Lisa Burchell (CHG/DOC MGMT)

Title:

THIS SUPPLEMENTAL AGREEMENT

Main Description:

Related Parts

0 PWY:CCN.A;1 Lisa Burchell (CHG/DOC MGMT)
(CHANGE_MANAGEMENT)
Change Control Notes

a PWY:CD_ATTACH.A;1 Lisa Burchell (CHG/DOC MGMT)
(CHANGE_MANAGEMENT)
Change Document Attachments

Related Items
Affected
3. PWY:CCN_005S0A_1.A-CDATTACH;I (Affected) Lisa Burchell (CHG/DOC MGMT)
(CCN_00550a_1.doc)
CCN 00550a ATTACHMENT 1

Related Child Change Documents:

Related Parent Change Documents:

Action Messages

Action History

1 01-OCT-1999 13:10:55 Lisa Burchell (CHG/DOC MGMT)

BURCHELL CcC/DC
Document created

2 01-OCT-1999 13:11:06 Lisa Burchell (CHG/DOC MGMT)
BURCHELL cc/DC

Actioned document from RAISED to APPROVED

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14

3 01-OCT-1999 13:15:27 Lisa Burchell (CHG/DOC MGMT)
BURCHELL cc/DC
Actioned document from APPROVED to RAISED

4 01-OCT-1999 13:15:43 Lisa Burchell (CHG/DOC MGMT)
BURCHELL CC /DC
Actioned document from RAISED to APPROVED

Update Histor

0 01-OCT-1999 13:10:55 Lisa Burchell (CHG/DOC MGMT)
BURCHELL cc/DC
Related Design Part PWY:CCN.A;1

3 01-OCT-1999 13:15:36 Lisa Burchell (CHG/DOC MGMT)

BURCHELL cc/pc
Related Design Part PWY:CD_ATTACH.A;1

3 01-OCT-1999 13:15:36 Lisa Burchell (CHG/DOC MGMT)

BURCHELL cc/DC
Related Item PWY:CCN_00550A_1.A-CDATTACH; I (Affected)

4 09-OCT-2000 13:02:07 PCMS - CM Dept.

PCMS Nev
Request attribute(s) updated

4 O1-JUL-2003 18:55:05 Neil. Tuffs 7229 4228
TUFFSN
Request attribute(s) updated

Archived Attribute Information

AUTH_APPR_RQD=NO

--- END OF CHANGE CONTROL NOTE PWY_CCN_550 ----

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