Information Services Group

Mr. Walter Rubel Deputy Executive Director of Administration & Finance Pennsylvania Department of Revenue Pennsylvania Lottery 1200 Fulling Mill Road Middletown, PA 17057 Dear Walt:

January 28, 2012

We are submitting our Statement of Work that defines the tasks to be completed during a one (1) year contract extension to our current purchase order number 9299665. The current purchase order expires on June 30, 2010. The purchase order extension shall begin on July 1, 2010 and end on June 30, 2011. The work described in that attached Statement of Work shall cover the period July 1, 2010 to June 30, 2011 (a period hereinafter referred to as FY 2010). Invoices will be submitted the 1st day of each month for services to be rendered that month. The Lottery has the option to cancel this agreement under the following terms. The Lottery will inform ISG in writing of its intent to cancel this agreement 90 days in advance of the date they wish to discontinue services during the first 6 months of this agreement and 30 days in advance during the final 6 months of this agreement. The primary point of contact for all contractual and purchasing matters related to this purchase order extension is: Larry Graves President/CEO Information Services Group, Inc. Phone: 717-910-0514 Fax: 717-370-0108 Email: Lgraves@isg4results.com Purchase orders may be faxed to the fax number designated under Larrys contact data. All work completed under this purchase order shall be performed locally either at ISGs offices in Middletown or at the Lotterys Headquarters in Middletown. Accordingly, we do not have any travel expenses. Also, this engagement does not involve classroom or other forms of formal training. The remittance address for ISG is the address designated below as part of our letterhead. If you have any questions or need any additional information please call or email me. Sincerely, Lawrence J. Graves President

__________________________________________________________________________________________________ 1301 Fulling Mill Rd. Suite 2000 Phone: 717-910-0520 Middletown, PA 17057 Fax: 717-370-0108 www.isg4results.com

Statement of Work (SOW)

A.

Background

The District Lottery Representatives (DLR) Mobility Information System is comprised mainly of the following major software components: y Retailer Navigator Application (Lottery employees and retailers use to obtain Lottery information) y Field Navigator Software & Data Base running on servers at ISG y Field Navigator Software & Data Base running on each Tablet PC (DLRs, Area Managers & Supervisors, Regional Project Managers, and Field Operations Personnel) y HQ Navigator running from select Desktop PCs (Field Operations and Headquarters Personnel) The licensed Navigator Software Package is comprised of the following major components: y Navigator Database Import/Export Module Near real-time data transfer between the Navigator Database and the Lottery Back Office system y Navigator Database reporting database designed to deliver near real-time data to associated software products y Retailer Navigator provides sales and inventory information to the retailer community via secure website y Synchronization Module Provides unattended synchronization between the central Navigator database and Lottery users databases y Navigator Upgrade Service Unattended upgrade service for all Navigator software y Navigator End User Modules Unique sets of tools and reports customized for each end user Information Services Group (ISG) performs enhancements, modifications, and integration services to all of the licensed Navigator Software Packages. These services are performed on an ad-hoc basis.

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B.

HOSTING
DLR Mobility Server Hosting
y ISG proposes to host the DLR Mobility Server at its corporate headquarters facility on a one year contract. ISG further agrees to follow established Commonwealth Office of Administrations Bulletins E4 and E5 regarding Website Accessibility Compliance Reporting Process and Internet/Intranet/Extranet (IIE) Web Site Design Standards. Server Hosting will include the following:         Site Security T-1 communications User Administration Formal Backup and Disaster Recovery process/program 24X7 system monitoring Routine hardware preventive maintenance Hardware troubleshooting DLR Connectivity

Web Server Hosting

y ISG proposes to host the Retailer Web Server at its corporate headquarters facility. ISG proposes a one year contract. ISG agrees to follow established Commonwealth Office of Administrations Bulletins E4 and E5 regarding Website Accessibility Compliance Reporting Process and Internet/Intranet/Extranet (IIE) Web Site Design Standards. Server Hosting will include the following:        Secure site T-1 communications User Administration Formal Backup and Disaster Recovery process/program 24X7 system monitoring Routine hardware preventive maintenance Hardware troubleshooting

ISG Hardware Augmentation

 6Tb of Data Storage via SAN  Dual Quad Server using Virtual Server software for testing and production environments  Back-up servers available for failover and/or growth

SQL Maintenance/Support
y ISG proposes to provide daily SQL support to both the Retailer Web product and the DLR Mobility product on an 8X5 basis. The services include:  Conducting routine table maintenance  Applying updates to software products  Troubleshooting data transfer issues between the Back office server and our site

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Software Upgrade Service

y ISG proposes to provide quarterly software upgrade services for all licensed servers. This service would include the quarterly upgrade of:     Navigator Products Microsoft Server Products SQL 2008 Ghost image Software build supported by Revenue

Tablet Maintenance/Support

ISG proposes to provide initial build services for DLR Mobility Tablets for distribution. ISG will also provide Lottery IT resources with 2nd level hardware troubleshooting assistance. Rebuilds covered under this contract are limited to 60 tablets. If the lottery request rebuilds exceeding 60 tablets they will be billed at $150 per hour for services (not to exceed 6 hours per tablet).

Service Level Agreement

Information Services Group, Inc. (ISG) agrees to provide the web hosting services outlined in this document to the Commonwealth of Pennsylvania Lottery on a 24 X 7 basis and the support services on an 8 X 5 basis. Should hosting services be unavailable in excess of 24 contiguous hours ISG agrees to subtract the proportional amount from the Hosting Fees on the next statement. The exception to this commitment would be:  An act of God  Data availability issues due to third party communications  Power availability due to equipment failures outside the control of ISG.  Act of Terrorism or War ISG stands ready to increase the availability of this contract to 99.999 uptime should this become a requirement in the future at an enhanced fee.

C.

Support/Maintenance

PA Single point of contact software services support

y Information Services Group, Inc. agrees to provide 8X7 phone support for DLRs and Retailers via 800 service. These services will include assistance in the use of the Navigator software and troubleshooting software issues. ISG will assist Lottery personnel in the troubleshooting of hardware and communications issues, however all hardware and communications issues are the sole responsibility of the Lottery.

PA E-mail addresses DLR Mobility Users to input trouble tickets

y
Information Services Group, Inc. will provide and monitor an e-mail address that DLR Mobility users may submit issues to. This service is intended for non-critical situations where it is easier for the DLR to communicate via e-mail at their leisure.

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PA Retailer Navigator and HQ Navigator Standard Maintenance Updates

y The Lottery will be entitled to the following software maintenance services (Imports, Exports, Upgrades, Data Synchronization, & Data Base Services, Headquarters Dashboard, and WINDOWS Client source code) for: Field Navigator * Retailer Navigator * HQ Navigator Software Updates for Field, Retailer, and HQ Navigators ISG will provide all standard Maintenance Updates releases. A Maintenance Update is a modified version of a Program released by ISG generally to its existing Customers without charge, primarily to correct or eliminate errors in the prior release of the Program and also to enhance existing features (example: Updating from revision 4.1.1 to revision 4.1.2. Updating from revision 4.1 to revision 4.2 or even updating from revision 4.2 to revision 5.0).; it does not include new versions or upgrades of any Program for which ISG generally charges an additional fee.

y y y y

PA Error Corrections
y
Information Services Group, Inc. will provide releases to correct errors found in the Navigator suite of tools. Errors are defined as issues arising from design flaws not found during QA testing at ISG or initial User Testing and issues arising from changes to the operating system or sub-systems such as Microsoft Server 2008 upgrades or upgrades to SQL 2008. Information Services Group, Inc. will make every effort to expedite resolution and will keep the Lottery informed of their progress at all time.

Reporting Service
y y Information Services Group, Inc. will provide a weekly electronic report to the Lottery detailing the number of calls received for the week and the general nature of the call. Information Services Group, Inc. will attend weekly vendor meetings via phone call. When requested by the Lottery, if personnel are available, ISG will send a representative.

D.
y

Pricing
All work described in this document will be provided on a monthly basis with the exception of development or ad-hoc services covered in the next bullet point. Invoices will be delivered on the first working day of each Month electronically to the Lottery. This agreement may be terminated under the following conditions:  During the first 6 months of this contract the Lottery must provide 90 days notice of termination.  During the final 6 months of this contract the Lottery must provide 30 days notice of termination. Information Services Group (ISG) performs enhancements, modifications, and integration services to all of the licensed Navigator Software Packages. These services are performed on an ad-hoc basis. ISG is currently under contract with the Commonwealth of Pennsylvania to provide these services at a rate of $150.00 per hour for the period of July 1, 2010 through June 30, 2011. All services covered in this document, excluding ad-hoc development and tablet rebuilds exceeding 60, will be provided on a monthly basis for $42,127.00.

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Acceptance of Work Statement

ISG has reviewed the requirements set forth in the Commonwealth Statement of Work and will provide project management and programming services to complete said services for the sum of money listed in section C. Changes, modifications, and additions to the work outlined in this statement will be accomplished via the System Modification/Customization Plan contained in the original contract.

Lawrence J. Graves President/CEO Information Services Group, Inc.

Walter Rubel Deputy Executive Director Commonwealth of Pennsylvania

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