Document:

Exhibit 10.27

 

Hawaiian Telcom &
Accenture CONFIDENTIAL

 

Amendment Number Nine

 

To Application Services Agreement

 

January 1, 2008

 

CONFIDENTIAL
TREATMENT REQUESTED.  CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH
THE COMMSSION.

 

 

AMENDMENT NUMBER NINE

 

TO APPLICATION SERVICES AGREEMENT

 

This
Amendment Number Nine (“Amendment”), effective as of January 1, 2008 (the “Amendment
Effective Date”), is between Hawaiian Telcom Communications, Inc. (“Hawaiian
Telcom”) and Accenture LLP (“Accenture”). Accenture and Hawaiian Telcom may be
referred to in this Amendment individually as “Party” and together as “Parties.”

 

The Parties entered into that certain Application
Services Agreement, effective as of February 5, 2007 (the “Agreement”),
which the Parties now desire to amend.

 

The
Parties agree to modify and amend the Agreement, as follows:

 

1.              Billing Fallout Queue Management Statement of Work: The Parties hereby
agree to extend the term of Exhibit B-6, Billing Fallout Queue Management
Statement of Work (“SOW”) and to expand its scope to include Manual CRM
Processing (as set out in Section 3 (Scope) below).  Any references in the Agreement to Billing
Fallout Services are now hereby amended to include Manual CRM Processing as of
the Amendment Effective Date.

 

2.              Term: Section 1.2,
Term, of the SOW is extended to March 31, 2008.

 

3.              Scope: Section 1.3,
Scope, and Section 2, Billing Fallout Services, of the SOW remains as
worded plus the following wording to incorporate Manual CRM Processing into
Billing Fallout Services.

 

Section 1.3

 

The
scope of Manual CRM Processing consists of 
the managing and handling of CRM fallout orders, the correction and
refreshing of Product Configurator and installed services, the cancellation of
orders, correction of CRM account status (active/disconnected), the managing of
post-provisioning Webform order flow, and the generation of various daily
reports.

 

Section 2

 

The
scope of Manual CRM Processing consists of the managing and handling of CRM
fallout orders, the managing of post-provisioning Webform order flow, and the
generation of various daily reports.

 

Activities
to perform Manual CRM Processing include but are not limited to:

 

[ * ]

 

4.               Charges: Section 1.4, Charges, of the SOW is
modified to provide the resources and rates starting January 1, 2008 for
Billing Fallout Services.

 

The
following tables show the resources and rates for January 1, 2008 through March 31,
2008.

 

* 
Confidential material redacted and filed separately with the Commission.

 

2

 

Billing Fallout Services resources:

 

	
  Resource Type

  	
   

  	
  Location

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  
	
  Project Manager

  	
   

  	
  Manila

  	
   

  	
  [
  * ]

  	
   

  	
  [
  * ]

  	
   

  	
  [
  * ]

  	
   

  
	
  Senior
  Programmer/ Network

  	
   

  	
  Manila

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  
	
  Programmer

  	
   

  	
  Manila

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  
	
  Approximate
  Monthly Charge

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [ * ]

  	
   

  

 

Manual
CRM Processing resources:

 

	
  Resource Type

  	
   

  	
  Location

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  
	
  Senior Programmer/ Network

  	
   

  	
  Manila

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  
	
  Programmer

  	
   

  	
  Manila

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  	
  [ * ]

  	
   

  
	
  Approximate Monthly Charge

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [ * ]

  	
   

  

 

If
during the performance of Billing Fallout Services and Manual CRM Processing,
adjustments to the staffing levels described above is requested, Hawaiian
Telcom and Accenture will mutually agree to any such adjustments. Hawaiian
Telcom shall provide Accenture 20 business days notice prior to reducing
headcount.

 

5.              Defined Terms: Any terms not defined in this Amendment Nine will have the same
meaning as in the Agreement.

 

6.              Effect of Amendment:  Unless otherwise amended herein, all terms
and conditions of the Agreement, as previously amended, remain unmodified and
in full force and effect.

 

*  Confidential material redacted and filed separately with the
Commission.

 

3

 

IN
WITNESS WHEREOF, this Amendment Nine has been duly executed by and on behalf of
the Parties hereto as of the Amendment Effective Date.

 

HAWAIIAN TELCOM COMMUNICATIONS, INC.

 

	
  By:

  	
  /s/ Michael S. Ruley

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Michael S. Ruley

  
	
   

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
  Date:

  	
  January 3, 2008

  

 

 

Accenture LLP

 

	
  By:

  	
  /s/ Timothy A. Hale

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Timothy A. Hale

  
	
   

  	
   

  
	
  Title:

  	
  Partner

  
	
   

  	
   

  
	
  Date:

  	
  December 26, 2007

  

 

4Exhibit 10.28

 

Hawaiian Telcom &
Accenture CONFIDENTIAL

 

Extension of Amendment Number Nine

 

To Application Services Agreement

 

March 31, 2008

 

 

EXTENSION OF AMENDMENT NUMBER NINE

 

TO APPLICATION SERVICES AGREEMENT

 

This
Extension of Amendment Number Nine (“Amendment”), effective as of March 31,
2008 (the “Amendment Extension Effective Date”), is between Hawaiian Telcom
Communications, Inc. (“Hawaiian Telcom”) and Accenture LLP (“Accenture”).
Accenture and Hawaiian Telcom may be referred to in this Amendment individually
as “Party” and together as “Parties.”

 

The Parties entered into that certain Application
Services Agreement, effective as of February 5, 2007 (the “Agreement”),
which the Parties now desire to amend.

 

The
Parties agree to modify and amend the Agreement, as follows:

 

1.               Term: Section 1.2, Term, of the SOW as set
forth in Amendment Number Nine is extended from March 31 2008 to June 30,
2008.

 

2.               Defined Terms: Any terms not defined in this Amendment
will have the same meaning as in the Agreement.

 

3.               Effect of Amendment:  Unless otherwise amended herein,
all terms and conditions of the Agreement, as previously amended, remain
unmodified and in full force and effect.

 

IN
WITNESS WHEREOF, this Amendment has been duly executed by and on behalf of the
Parties hereto as of the Amendment Extension Effective Date.

 

HAWAIIAN TELCOM COMMUNICATIONS, INC.

	
  By:

  	
  /s/ Kevin J. Nystrom

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Kevin J. Nystrom

  
	
   

  	
   

  
	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  
	
  Date:

  	
  March 24, 2008

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accenture LLP

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James E. Bailey

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  James E. Bailey

  
	
   

  	
   

  
	
  Title:

  	
  Senior Executive

  
	
   

  	
   

  
	
  Date:

  	
  March 13, 2008

  

 

2Exhibit 10.29

 

Hawaiian
Telcom & Accenture CONFIDENTIAL

 

Amendment
Number Ten

 

To
Application Services Agreement

 

January 1,
2008

 

CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF
THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE
COMMSSION.

 

 

AMENDMENT
NUMBER TEN

 

TO
APPLICATION SERVICES AGREEMENT

 

This Amendment Number Ten (“Amendment”),
effective as of January 1, 2008 (the “Effective Date”), is between
Hawaiian Telcom Communications, Inc. (“Hawaiian Telcom”) and Accenture LLP
(“Accenture”). Accenture and Hawaiian Telcom may be referred to in this
Amendment individually as “Party” and together as “Parties.”

 

The Parties
entered into that certain Application Services Agreement, effective as of February 5,
2007 (the “Agreement”), which the Parties now desire to amend.

 

The Parties agree to modify and amend the
Agreement, as follows:

 

1.               Amendment
to ARTICLE IX: Section 9.4, Invoices, Method of Payment;
Finance Charges, (a) Invoicing; (ii) Enhancement Services, is
modified to read, in its entirety, as follows:

 

“For Enhancement Services,
Accenture shall render a single consolidated monthly invoice at the end of the
month that will be the sum of:

 

(i)            Fixed
Enhancement Service Charges for Fixed Enhancement Services to be provided
during the current month.

(ii)           Variable
Enhancement Services Charges for Variable Enhancement Services provided during
the current month.

 

Accenture shall provide
Hawaiian Telcom with a monthly utilization report outlining personnel that have
been deployed during an invoicing period describing the Enhancement Services
provided by such personnel.”

 

2.                       Amendment to Exhibit B-2: Section 1.2,
Term, of Exhibit B-2, Enhancement Services Statement of Work, is modified
to read, in its entirety, as follows:

 

 “This Statement
of Work shall be extended from the Effective Date and expire on June 30,
2008, unless an extension is otherwise agreed upon in writing by the Parties
(the “Enhancement Services Term”), provided that the expiration of this
Statement of Work shall not limit any of the warranties provided for in the
Agreement.”

 

3.                       Amendment to Exhibit B-2: Sections
1.3(d), Scope & Resources, of Exhibit B-2, Enhancement Services
Statement of Work, is modified to read, in its entirety, as follows:

 

“Hawaiian
Telcom may review and provide input on individuals to be assigned to the Fixed
Enhancement Services Team and Variable Enhancement Team.  If Hawaiian Telcom objects to the proposed
assignment, the Parties shall work in good faith to promptly resolve Hawaiian
Telcom’s concerns on a mutually agreeable basis prior to assignment of the
individual.

 

1

 

Hawaiian
Telcom will provide thirty (30) days prior written notice for requests to
exchange the FTEs roles described in the Fixed Enhancement Team, as outlined in
Exhibit D-2, Table 1.  Such requests
will be submitted in writing by Hawaiian Telcom to Accenture describing the
revised roles and skills requested and the FTEs requested to be exchanged for
the Fixed Enhancement Team. Accenture will notify Hawaiian Telcom of any
changes to the Fixed Enhancement Service Charges or additional out of pocket
expenses that may result from the requested adjustments.  Changes to the Fixed Enhancement Service
Charges will only take effect upon written acceptance of a mutually agreed
Change Order.

 

Hawaiian
Telcom will provide thirty (30) days written notice for requests to increase or
decrease Variable Enhancement personnel. 
Accenture will notify Hawaiian Telcom of any changes to the Variable
Enhancement personnel that may result from Hawaiian Telcom requested scope of
work or projects.  Changes to the
Variable Enhancement Service Charges will only take effect upon written
acceptance of a mutually agreed Change Order. 
Notwithstanding the foregoing, where a Variable Enhancement resource is
added solely to perform work on a specific project and for a finite period of
time, no notice to remove such resource will be required and Accenture will
identify upfront any additional out of pocket expenses that may result in this
event as part of such a mutually agreed Change Order.

 

Hawaiian
Telcom may request replacement of individuals assigned to the Fixed Enhancement
Services Team and Variable Enhancement Team for unsatisfactory performance at
any time in accordance with Section 8.5 of the Agreement.

 

Notwithstanding
the foregoing notice periods, in the case of a request to add an additional
resource, Accenture will use Reasonable Efforts to accommodate such request by
the date requested by Hawaiian Telcom, and in the case of a removal of a
resource, Accenture will use Reasonable Efforts to re-deploy such resource by
the date Hawaiian Telcom identifies as the date such resource is no longer
required.”

 

4.                       Amendment to Exhibit B-2: Sections
1.3(f), is deleted in its entirety.

 

5.                       Amendment to Exhibit B-2: Sections
1.4(b), Enhancement Capacity Work Orders, is deleted in its entirety.

 

6.                       Amendment to Exhibit B-2:
Sections 1.4(c), General Enhancement Work Order, and 1.4(d), Work Order, are deleted
in its entirety.  Also, Section 1.4(e) is
modified to read, in its entirety, as follows:

“Unassigned
Enhancement Team Members.  If any member
of the Enhancement Team is not assigned to a specific project, or if they are
assigned to a specific project but otherwise have excess capacity and
appropriate skills, they will perform such Enhancement Services or AM Services
as directed by Hawaiian Telcom from time to time.  Correspondingly, Hawaiian Telcom shall have
the right to assign members of the Discretionary AM Services Team to perform
Enhancement Services from time to time.”

 

7.                       Amendment to Exhibit B-2:
Sections 1.4(f), Non-Enhancement Capacity Resource Pool Resources, is deleted
in its entirety.

 

2

 

8.                       Amendment to Exhibit B-2: Section 1.5,
Charges, of Exhibit B-2, Enhancement Services Statement of Work, is
modified to read, in its entirety, as follows:

 

“The
charges for Enhancement Services from the Effective Date will be in accordance
with the revised Exhibit D (Charges) and Attachment D-2
(Enhancement Services Charge) as outlined below.  All figures are United States Dollars.”

 

9.                       Amendment to Exhibit D:
Sections 3.1 & 3.2, Summary of Charges & Enhancement Capacity
Work Orders, of Exhibit D, Charges, is modified to read, in its entirety,
as follows:

 

“3.1
The monthly charges for Enhancement Services will be the sum of the:

 

(i)                                     Fixed
Enhancement Services Charges; and

(ii)                                  Variable
Enhancement Services Charges.”

 

3.1 (a) Fixed Enhancement Team & Charges

 

Hawaiian
Telcom authorizes and Accenture will provide [ * ] (“FTEs”) at a fixed monthly charge including
expenses of [ * ] as set forth
below for the Enhancement Services Term:

 

	
  ROLE

  	
   

  	
  [ * ]

  
	
  Senior Manager - US

  	
   

  	
  [ * ]

  
	
  Project Manager - US

  	
   

  	
  [ * ]

  
	
  Business Consultant/Analyst - US

  	
   

  	
  [ * ]

  
	
  Technical Lead - US

  	
   

  	
  [ * ]

  
	
  Snr Programmer - US

  	
   

  	
  [ * ]

  
	
  Programmer - US

  	
   

  	
  [ * ]

  
	
  Project Manager - Manila

  	
   

  	
  [ * ]

  
	
  Technical Lead - Manila

  	
   

  	
  [ * ]

  
	
  Snr Programmer - Manila

  	
   

  	
  [ * ]

  
	
  Programmer, Manila

  	
   

  	
  [ * ]

  
	
   

  	
   

  	
   

  
	
  Total FTE

  	
   

  	
  [ * ]

  
	
  Revised Enhancement Service Charges

  	
   

  	
  [ * ]

  

 

Exhibit D-2, Table 1 – Fixed Enhancement
Team & Charges

Note:
Replacing p.27 of Exhibit D-2 only

 

* Confidential material
redacted and filed separately with the Commission.

 

3

 

3.1 (b) Variable Enhancement Team & Charges

 

If
the Parties agree that demand requirements exceed [ * ]  assigned to the
Fixed Enhancement Services Team, Variable Enhancement Team resources will be
added, subject to acceptance of a mutually agreed Change Order that documents
any additional authorized capacity. 
Hawaiian Telcom will have no obligation to pay for, and Accenture will
have no obligation to provide, in excess of [ * ] or any Variable Enhancement Team FTEs, except
subject to a mutually agreed Change Order. 
Hawaiian Telcom will pay the Variable Enhancement Service Charges on a
time and materials (“T&M”) basis as set forth below in the Variable
Enhancement Team Charges Table (Exhibit D-2,
Table 2):

 

	
  Role

  	
   

  	
  [ * ]

  
	
  Senior Manager - US

  	
   

  	
  [ * ]

  
	
  Project Manager - US

  	
   

  	
  [ * ]

  
	
  Business Consultant/Analyst - US

  	
   

  	
  [ * ]

  
	
  Technical Lead – US

  	
   

  	
  [ * ]

  
	
  Snr Programmer – US

  	
   

  	
  [ * ]

  
	
  Programmer – US

  	
   

  	
  [ * ]

  
	
  Project Manager - Manila

  	
   

  	
  [ * ]

  
	
  Technical Lead - Manila

  	
   

  	
  [ * ]

  
	
  Snr Programmer - Manila

  	
   

  	
  [ * ]

  
	
  Programmer, Manila

  	
   

  	
  [ * ]

  

 

Exhibit D-2, Table 2 – Variable
Enhancement Team & Charges

Note:
Replacing p.27 of Exhibit D-2 only

 

3.2 The Enhancement Services scope of work for
the Hawaiian Telcom authorized capacity will be prioritized by Hawaiian Telcom
and defined in a mutually agreed project plan maintained by the Parties.  The project plan will be used as a basis for
planning and tracking of resource utilization. 
Such project plan shall include the following information:

 

(i)            detailed
description of the scope of Services to be provided by the authorized capacity
including Deliverables to be provided;

(ii)           detailed
description of Hawaiian Telcom’s obligations;

(iii)          the schedule
for performance of the Services including planned milestone dates (for which the
Acceptance sign-off procedures defined in Exhibit C of the Agreement will
be used);

(iv)          any additional
resources required to be provided by Hawaiian Telcom for the performance of the
Services.

 

* Confidential material
redacted and filed separately with the Commission.

 

4

 

Accenture and Hawaiian Telcom will
use Reasonable Efforts with then currently deployed personnel to complete
specific projects by the applicable planned milestones referred to in subsection
(iii) above.  Additionally,
Enhancement Services resources will not be used to perform AM Services or
warranty services unless otherwise approved by Hawaiian Telcom.

 

Any changes in scope or
planned effort will be documented in the project plan and both parties will
work together in good faith to jointly reprioritize the assignments for the
Hawaiian Telcom authorized capacity for Enhancements Services.

 

10.                 Amendment to Exhibit D: Sections
3.3 & 3.4, Resources Not Dedicated to Enhancement Capacity Work Order &
Non-Enhancement Capacity Resource Pool Resources, is deleted in its entirety.

 

11.                 Termination for Convenience:
Hawaiian Telcom may terminate, for convenience, the Enhancement Services
Statement of Work with thirty (30) days written notice without liability other
than for payment of applicable Enhancement Services Charges provided up to the
effective date of termination. In the case of early termination, Accenture will
also invoice Hawaiian Telcom for any additional out-of-pocket expenses incurred
only as a result of early termination such as apartment lease early exit/break
fees.

 

12.                 Scope Management and Reporting:  The Parties hereby agree
that Enhancement Services scope may be refined and further modified as mutually
agreed in writing during the Enhancement Services Term and shall at all times
be documented via the Agreement’s change control procedures.  Accenture will provide monthly status reports
that will track planned and actual schedules, costs and budget for each active
project as reasonably required and agreed to with Hawaiian Telcom.

 

Enhancement
Services projects will be scheduled for deployment to production in accordance
with a monthly release management process or as otherwise mutually agreed by
the parties.

 

13.                 Defined Terms: Any terms not defined
in this Amendment will have the same meaning as in the Agreement.

 

14.                 Effect of Amendment:  Unless otherwise amended herein, all terms
and conditions of the Agreement remain unmodified and in full force and effect.

 

* * * * * * *

 

[Balance of page intentionally left blank; signature page follows]

 

5

 

IN WITNESS WHEREOF, this Amendment has been
duly executed by and on behalf of the Parties hereto as of the Effective Date.

 

HAWAIIAN TELCOM COMMUNICATIONS, INC.

 

	
  By:

  	
  /s/ Michael S. Ruley

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Michael S. Ruley

  
	
   

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
  Date:

  	
  January 3, 2008

  

 

 

ACCENTURE LLP

 

	
  By:

  	
  /s/ Timothy A. Hale

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Timothy A. Hale

  
	
   

  	
   

  
	
  Title:

  	
  Partner

  
	
   

  	
   

  
	
  Date:

  	
  January 3, 2008

  

 

6

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