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HELPING YOUR BUSINESS STAYON TOP OF TECHNOLOGY

Project proposal: Managed IT Service

Client: Tunnel Holdings Pty Ltd

Delivered on: August 23, 2016

Submitted by: Dan Mandich

WHY ALTITUDE IT?Altitude IT is a Managed IT Service provider with a difference. We value our customers as much as we value

technology and see the two as a partnership. We pride ourselves on excellent customer service and

innovative solutions that are designed to help you meet your strategic goals.

Our focus is on providing companies with key IT support and tools to help run your business more effectively.

Whether it's Cloud or IT services you need, we can provide assistance in enabling you to operate at your fullest

potential. There is no jargon or sales pitch - just a reliable, informed team at hand to provide a bespoke service

that suits your needs.

1Managed IT Service | Tunnel Holdings Pty Ltd | August 23, 2016

OVERVIEW AND GOALSDear Bob,

Thank you for your time and the opportunity to offer you this proposal.

This proposal is for a Managed IT Service, which covers desktop and server support, monitoring and

maintenance, at Tunnel Holdings Pty Ltd offices in Sydney.

Why do you need a Managed IT Service?

1. INCREASED PRODUCTIVITY THROUGH DECREASED DOWN-TIME

Whenever you are weighing up Managed Services, the opportunity cost of NOT having a Managed Service

needs to be considered. IT environments that are proactively managed have less issues, and are more

productive. The real cost of this differs industry-to-industry, but can be answered fairly easily nonetheless by

answering this simple question: "how much would it cost me per hour and per day to be out of action?" Only

you would know the answer to this in your business, but it's worth thinking about.

2. PREDICTABLE, ‘OPEX' SPENDING

One thing that our customers love when under a Managed Service, is that there are no surprises. They know

what it costs them per-employee per-month to have their IT looked after, and this can be factored into

budgeting and hiring forecasts accordingly. The idea is to spend a little every month in order to be managed

and operational, and to avoid having to spend a lot at a time when your systems are down and you're over a

barrel with no real choice.

3. IF YOU HAVE ENOUGH EMPLOYEES, THEN YOU NEED TWO LESS EMPLOYEES

I'm not trying to confuse you, so hear me out. If your company is of a size that could warrant internal IT

resources, then what I'm saying is that you don't need them. This is the sweet spot of Managed Services,

because in order to get something close to an equivalent service in-house, then you really need MULTIPLE

employees in order to cover for sick days, holidays, and busy days. The figures in this scenario are very

compelling, because you get a full time IT department without the HR and on-costs. And when putting the

price of Managed Services up against the cost of 2 competent IT engineers… Managed Services wins every

time.

We look forward to implementing Managed IT service at Tunnel Holdings Pty Ltd.

Sincerely,

Dan Mandich

Altitude IT


SCOPE OF SERVICESHelpdesk SupportOur helpdesk consultants will be available Monday-Friday 8am-5:30pm to support your staff for any desktop

related issues. Listed below are the inclusions under this arrangement:

• Unlimited telephone, remote and onsite support for Tunnel Holdings Pty Ltd staff, up to 8 users

• Unlimited support for your printers, smartphones and network devices

• Afterhours support Monday-Sunday 8am-7pm

Servers & Network ManagementOur senior engineers will be in charge of managing your servers, network devices, backup systems and

firewalls.

Listed below are the inclusions under this arrangement:

• Unlimited server maintenance and support, up to 1 hosts and 3 virtual servers

• Unlimited server installations, migrations and monitoring

• Installation of required Windows updates

• Disaster Recovery for up to 1 host and 3 virtual servers

Monitoring and AlertingYour servers, workstations and network devices will be monitored by our 24/7 alerting system, MaxFocus. Our

SLA (Service Level Agreement) on your servers and network devices will ensure that we will respond and

attend to any alert within 2 hours, Monday-Friday 7am-5:30pm.

Exclusions

Listed below are the arrangement exclusions however we can provide project based proposals or request

assistance from 3rd party suppliers. Whenever required we can also assist any external contractors and provide

adequate system access.

• Application specific work outside basic admin (ie. SQL Queries, VOIP phone programming)

• Hardware (PCs/laptops/printer) and software licences

• Cabling installations/changes (electrical, data or phone)

• Voice Services (PABX, SIP etc)

• Office relocations

• Increases in the number of hosts or virtual servers over and above this included in this proposal

• Any action required as a consequence of not following our advice


TIMEFRAMETo complete the work outlined in the project scope, we will need to undertake some changes on

your servers and network. Any prerequisite work is included in our agreement at no additional

cost.

Below is the approximate timeframe of our work schedule.

Phase Week

Initial Meeting - Completed 1

Proposal and Scope of Work - In progress 2

Start of Managed IT Service - 1 September 3

Scheduled work commences - 7 September or as soon

the server has been supplied and scheduled in

Scheduled work will include installation of new Server

4


Description Price Qty Subtotal

Managed IT Service

Unlimited phone, remote and onsite

IT Support for servers and workstations

$1,950 / month 1 $1,950

Weekend Support Rate

Up to 2 hours response afterhours and weekend

emergency calls

$200 / hour 0 $0

Office 365

Microsoft hosted email solution per user

$17.50 / month 8 $140

HP DL380G9 with Windows 2012 Server

E5-2650v3 (2/2), 32GB(2/24), SAS/SATA-2.5(0/8),

P44AR/2G, DVDRW, 2U, 3YR

$13,050 1 $13,050

HP Server Drives (1.2Tb total available)

600GB 6G SAS 10K 2.5in SC ENT HDD

$755 4 $3,020

Server Installation (if no Managed IT)

Labour to install, migrate and configure 3

servers. Upgrade operating system to 2012

when required. Migrate all mailboxes to Office

365. Setup offsite servers replication. Build

special clone PC for Harry.

$130 60 $7,800

Subtotal $25,960

GST 10% $2,596

Total $28,556


Your Investment

NEXT STEPS1. Please read the contract on the following pages to make sure you understand all the details involved

with us working together. It’s really important to us that everything is transparent and understood

from the beginning so that we lay a solid foundation for a great working relationship.

2. Once you feel confident about everything and are ready to move forward, please click the 'sign here'

button below.

3. Sign in the box that pops up to make the acceptance official.

4. Once we receive notification of your acceptance, we’ll contact you shortly to sort out next steps.

5. If you’d like to speak to us by phone, don’t hesitate to call me on (02) 9151 4778


Dan Mandich

[email protected]

Altitude IT

Bob Allen

General Manager

Tunnel Holdings Pty Ltd

STATEMENT OF WORK &CONTRACTDate: August 23, 2016

Between "us", Altitude IT Pty Ltd, and "you", Tunnel Holdings Pty Ltd

You Tunnel Holdings Pty Ltd, located at PO Box 296, North Sydney New South Wales 2059 are hiring Altitude IT

located at Level 5, 384 Eastern Valley Way, Chatswood, New South Wales, 2067 to perform Managed IT Service.

1.0 Mutual CooperationWe agree to use our best efforts to fulfill and exceed your expectations on the deliverables listed above. You

agree to aid us in doing so by making available to us any needed information needed pertaining to your

network and to cooperate with us in expediting the work.

2.0 Charges for Services PerformedRequests above and beyond those listed in the proposal may be considered out-of-scope and an amendment to

the agreement will be recommended.

3.0 Terms of Payment3.1 Billing Schedule

We're sure you understand how important it is as a small business that invoices get paid on time and in order to

maintain a positive working relationship and keep the project moving forward, you agree to stick tight to the

proposed monthly payment schedule.

Monthly fees will be invoiced at the end of each month in advance and are due within 14 days.

There is a general CPI increase of 3% or a minimum of $60 on our monthly fees each year assuming no other

changes affect this agreement.


3.2 Client Agreement to Pay

You agree to pay our initial (1st) invoice upon receipt for the once off items. Every invoice after that will have 7

day payment terms. In the event payment is not made within 30 days, Altitude IT may charge a late payment

fee of 1% per month on any overdue and unpaid balance not in dispute, to cover the manpower, interest, and

other costs Altitude IT pays for carrying overdue invoices from Tunnel Holdings Pty Ltd. In addition, Altitude IT

reserves the right to stop work until payment is received.

4.0 Cancellation of PlansYou have the right to modify, reject, cancel or stop any and all plans or work in process. However, you agree to

reimburse us for all costs and expenses we incurred prior to your change in instructions, and which relate to

non-cancelable commitments, and to defend, indemnify and hold us harmless for any liability relating to such

action. We agree to use our best efforts to minimize such costs and expenses.

5.0 Responsibilities of Altitude IT and TunnelHoldings Pty Ltd5.1 Client Responsibility for Accuracy

Altitude IT acknowledges its responsibility, both during and after the term of its appointment, to use all

reasonable efforts to preserve the confidentiality of any proprietary or confidential information or data

developed by Altitude IT on behalf of Tunnel Holdings Pty Ltd or disclosed by Tunnel Holdings Pty Ltd to

Altitude IT.

6.0 Term and Termination6.1 Period of Agreement and Notice of Termination

This Agreement shall become effective as of 1 September 2016 and will be active until 31 August 2022. If the

Agreement is terminated by Tunnel Holdings Pty Ltd, then the client is required to pay any current residual

work charges. Tunnel Holdings Pty Ltd needs to provide not less than 60 days' notice in this case.

7.0 General Provisions7.1 Governing Law

This Agreement shall be governed and construed in accordance with the laws of the local state.

7.2 Representations and Warranties

The parties each individually represent and warrant that each has full power and authority to enter into this

Agreement and to perform all of their obligations hereunder without violating the legal or equitable rights of

any third party.


7.3 Entire Agreement

Except as otherwise set forth or referred to in this Agreement, this Agreement constitutes the sole and entire

Agreement and understanding between the parties hereto as to the subject matter hereof, and supersedes all

prior discussions, agreements and understandings of every kind and nature between them as to such subject

matter.

If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future

law, then that provision will be fully severable. In such instance, this Agreement will be construed and enforced

as if the illegal, invalid, or unenforceable provision had never comprised a part of this Agreement, and the

remaining provisions of this Agreement will remain in full force and effect.

Bob Allen, to accept this contract, click the Accept button and sign at the prompt.

You will be emailed a copy for your records


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