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Lease, Revenue Sharing and Service Agreement
Seal Beach Police Department(CA)
This Lease, Revenue Sharing and Service Agreement(this"Agreement"),made and entered into
as of this 13 day of August 2018(the"Effective Date"),between the City of Seal Beach(CSB)
and HomeWAV,LLC,a Delaware limited liability company("HomeWAV").
RECITALS
Whereas,the CSB and HomeWAV desire to enter into Agreement to provide,among other terms
and conditions,that the CSB will lease certain equipment,as set forth on Exhibit A hereto(the
"Equipment"),from HomeWAV and will use that Equipment to operate HomeWAV's proprietary and
patented software program(the"Software"and,together with the Equipment,the"System");and certain
other permitted uses,as set forth on Exhibit B attached hereto(the"Other Permitted Uses");
Whereas,the System will be installed and operated in the CSB's detention facilities hereto
(each,a"Facility"and collectively,the"Facilities")and will provide inmate telephone and video
visitation over the Internet;and
Whereas, HomeWAV will deliver the Equipment and provide the CSB with a limited license to
use the Software,and the CSB will accept the Equipment and make use of the Software and the System,
in each case,pursuant to the terms and subject to the conditions set forth herein.
Now,therefore, in consideration of the mutual covenants and promises contained herein,the
parties,desiring to be contractually bound,agree as follows:
1. Lease; Exclusivity. HomeWAV hereby agrees to lease to the CSB,and the CSB hereby agrees
to accept a lease from HomeWAV,the Equipment. For the duration of this Agreement(which includes
any extensions hereto),the CSB agrees to use HomeWAV as the exclusive provider of inmate telephone
and video visitation systems for the Facilities and agrees not to use,purchase, lease or accept any
software,equipment or system similar to the Software,the Equipment or the System for use at any
Facility.
2. Term of this Agreement. The initial term of this Agreement shall be 5 years and will commence
90 days after the execution of the Agreement.
3. No Charge. HomeWAV will: (i)arrange for the delivery of the Equipment to the Facilities,
(ii) load the Software onto the Equipment,(iii)coordinate the installation of the Equipment in designated
wall mount locations within the Facilities,(iv)arrange for cat 5e or greater data cable to be installed to
each location within the Facility where the Equipment is to be installed,(v)arrange for high speed
Internet service and any equipment associated therewith to be provided to the Facility,(vi)provide
reasonable authorization and assistance to permit the use of the Equipment in connection with the Other
Permitted Use and(vii)provide staff training on administrative platform features and functionality,all at
no charge to the CSB.
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4. No Charge for Service and Maintenance. HomeWAV will service and maintain the Equipment
in each Facility pursuant to Software and Hardware Service Level Agreement,to be entered into between
HomeWAV and the CSB contemporaneously with the execution this Agreement and may be amended as
may be mutually agreed to by the parties thereto(the"Service Agreement"),which shall automatically
terminate upon termination of this Agreement; provided that HomeWAV shall not service or maintain the
Equipment to the extent any damage occurred as a result of misuse,neglect or any breach of this
Agreement, in each case,by any person other than HomeWAV or its employees, agents,representatives
or subcontractors.
5. Title to the Equipment. HomeWAV shall retain title to the Equipment and the System. The
CSB agrees to execute any such additional instruments and to permit any filing or recordation as may be
requested by HomeWAV to indicate ownership of the Equipment. The CSB will not,and will not permit
any other person to,remove,alter,disfigure or cover up any numbering, lettering,insignia or any owner's
tag(s)displayed upon the Equipment.
6. License for Use of System. HomeWAV hereby grants to the CSB a non-assignable and
nonexclusive license to use the Software for the limited purpose of providing inmate telephone and
Internet video visitation to inmates in each Facility and to view or monitor the records of such visitations,
in each case in accordance with the Software's End User Licensing Agreement and Terms of Use and
Privacy Policy,as each is set forth in the Software,as such items may be updated,amended and modified
in accordance with their respective terms(collectively,the"Software Terms and Conditions"),and
pursuant to the terms and subject to the conditions of this Agreement.The CSB shall have no right to
sublicense the Software and may not copy or modify the Software,or any adaptation,transcription or
merged portion thereof,except as expressly authorized in writing by HomeWAV. Any modifications,
improvement or alterations to the Software,whether authorized or not,made by the CSB or any third
party shall be the sole and exclusive property of HomeWAV,and the CSB hereby assigns all of its right,
title and interest in and to such modifications, improvements or alterations to HomeWAV. For the
avoidance of doubt,this license shall expire immediately upon the termination of this Agreement.
7. The CSB's Agreements.
a. The CSB covenants that it will not sublease or assign the Equipment,the Software or the
System.
b. The CSB agrees that the CSB shall keep the Equipment free and clear of all liens and
encumbrances.
c. The CSB hereby agrees to use the Equipment for limited purposes of use of the Software and the
Other Permitted Uses, in each case,at the Facilities and pursuant to the terms and subject to the
conditions of this Agreement.
d. The CSB agrees to use its best efforts to ensure that none of the Equipment or Software is
damaged by misuse or neglect,including,without limitation,by misuse by the inmates.
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e. The CSB agrees that HomeWAV shall be the sole and exclusive provider of existing and any
future inmate related communications,including but not limited to voice,video,and data(e.g.,
phone calls,video calls,messaging, and email)at all existing and future correctional facilities
under the authority of the CSB in lieu of any other third party providing such inmate including
without limitation,Customer's employees,agents,or subcontractors.
f. The CSB will work with HomeWAV to ensure that all users of the System will agree to the
Software Terms and Conditions.
g. The CSB will provide a data file of the CSB's Jail Management Software at a minimum of
fifteen (15)minutes per day.
h. The CSB will not move the Equipment without the advance written consent of HomeWAV.
i. The CSB will not remove,alter,disfigure or cover up any numbering, lettering, insignia or any
owner's tag(s)displayed upon the Equipment.
8. Use of the System. Subject to lock-downs, suspension of inmate privileges,and other temporary
interruptions,the CSB will allow inmate visitation on the System during the same hours when inmates are
allowed to use the applicable Facility's inmate phone systems.
9. Access to the Facility. The CSB will grant HomeWAV and its subcontractors reasonable access
to the Facilities in connection with HomeWAV's rights and obligations hereunder and under the Service
Agreement. HomeWAV shall have the right,upon reasonable notice,to enter into each Facility to inspect
the System.
10. System Usage Fee. The video visitors to each Facility's inmates shall be charged a fee at the rate
of twenty-one cents($.21)per minute to take part in interstate calls through the inmate telephone service,
twenty-five cents($.25)per minute to take part in intrastate calls through the inmate telephone service,
fifty cents ($0.50)per minutevideo visitations using the System,one dollar($1.00)to send a video
message and one-dollar($1.00)to send an inmate email: or such other prices as may be agreed to by the
CSB and HomeWAV(such amounts,the"Usage Fees"). Revenues from video visitation using the
System to visit with inmates in the Facilities shall be deposited into a dedicated account established and
maintained by HomeWAV through PayPal,or another equivalent third-party ecommerce vendor,and
HomeWAV is authorized to disburse such funds in accordance with Section 14. HomeWAV reserves the
right to change the Usage Fees,upon 30 days' notice from HomeWAV,as a result of any one or
combination of the following: (a)inflation,(b)a change in taxes,(c)a change in inmate phone rates or
(d)any rule,regulation,or other action by any government or regulatory entity resulting in increased costs
to HomeWAV.
11. Revenue Sharing. The CSB's revenue share from the usage of the Equipment and the System
installed in the Facility will be 20%. Revenue shall be defined as monies generated by the("Usage Fee")
minus the cost of any third-party service(i.e. international calling rates)or government taxes. Usage Fee
shall be defined as the cost per minute for video and voice calls. HomeWAV shall pay to the CSB, on a
monthly basis,its share of the revenues not later than the 10'h of following month.
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12. Call Monitoring. HomeWAV will endeavor to permit the CSB to monitor the voice and video
calls in accordance with HomeWAV's practices.The CSB hereby agrees that HomeWAV shall have no
obligation to review or monitor the contents of any video call or video message made or received using
the Software or the System and shall have not obligation to notify the CSB in connection with any use or
misuse of the Software or the System or any video call or video message made or received on the System.
The CSB hereby agrees that HomeWAV shall have no obligation to verify the users of the Software and
the System and shall not be liable for any use of the Software that is in violation of the Software Terms
and Conditions. HomeWAV will endeavor to make certain video recordings available to the CSB on
demand for a period of not less than 90 days after the date of such recording and,with advanced written
notice,until 90 days after termination of this Agreement.The CSB agrees that HomeWAV has no liability
to the CSB or any third party for any failure to record,store,transmit,relay,review or monitor any video
message.
13. Financial Reporting Requirements. HomeWAV shall maintain an accounting program that
accurately reflects the revenues generated by the System in the Facilities and provide that information to
the CSB monthly during the term of this Agreement.HomeWAV shall retain its share of the revenues as
payment for its obligations hereunder,and shall remit the CSB's share of revenues,along with such
monthly financial reports,to the CSB.HomeWAV shall issue inmate telephone and video visitation call
data,revenue,and expense information by the 10th day of each month with respect to inmate telephone
and video visitation activity that occurred in the Facilities during the preceding month. HomeWAV shall
maintain all books,documents,accounting records and other evidence pertaining to the services and
payments under this Agreement and make such materials available for inspection at all reasonable times
during the term of this Agreement,and for three(3)years after the date of the final payment under the
Agreement.
14. Termination. The CSB may terminate this Agreement if HomeWAV breaches Section 4, 5, 6,
13 or 15 and such breach remains unremedied thirty(30)days after notice thereof.HomeWAV may
terminate this Agreement if the CSB breaches Section 1,2,5,6,7,8,9, 10,or 11 and such breach
remains unremedied thirty(30)days after notice thereof.This Agreement shall automatically terminate
upon the end of the term,as such term may be extended pursuant to Section 3. Sections 11, 13, 15, 16, 17,
18,20,21,22,23,25 and 27-32 shall survive termination of this Agreement. In the event that the
Additional Consideration has not paid to or retained by HomeWAV prior to termination of this
Agreement(excluding any termination by the CSB pursuant to the first sentence of this Section),then the
CSB shall owe HomeWAV any amount of Additional Consideration not previously paid to or retained by
HomeWAV.
15. Return of the Equipment.The CSB shall return the System to HomeWAV in good,working
condition promptly following termination or expiration of this Agreement,but in no event later than(30)
days following such termination or expiration.In the event that any Equipment is not in good,working
condition or any Equipment is not returned pursuant to this Section,the CSB shall be liable for the
replacement cost of such Equipment,which amount shall be payable on HomeWAV's demand.
16. Agreement Documents. The attached Exhibit A,describing the Equipment and attached Exhibit
B describing the Other Permitted Uses,the Service Agreement and the Software Terms and Conditions
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are each made part of this Agreement and are each incorporated herein by this reference. This Agreement
represents the entire agreement and understanding between HomeWAV and the CSB with respect to the
subject matter hereof,and supersedes any other agreement or understanding,written or oral, that the
parties hereto may have had with respect thereto. No statements,representations,promises or
inducements with respect to the subject matter by either party or by any agent or representative of either
party which is not contained in this Agreement shall be valid or binding between the parties.
17. Force Majeure. To the extent allowable by law,any delays or failures by either party hereto in
the performance of the obligations hereunder shall be excused if and to the extent such delays or failures
are caused by occurrences beyond such party's control (a"Force Majeure"),including,without
limitation,acts of God,strikes or other labor disturbances,war,whether declared or not,sabotage,failure
of the Internet,or any part or element thereof and/or any other cause or causes,whether similar or
dissimilar to those herein specified,which cannot reasonably be controlled by such party.
18. Governing Law,Jurisdiction,and Venue. This Agreement shall be governed by the laws of
the State of California,both as to interpretation and performance.
19. Independent Contractor. HomeWAV acknowledges that HomeWAV and its employees serve
as independent contractors and that the CSB shall not be in any manner responsible for any payment,
insurance,or incurred liability.Nothing in this Agreement will create an employer-employee relationship,
association,joint venture,partnership,or other form of legal entity or business enterprise between the
parties,their agents,employees or affiliates.
20. Subcontractors. HomeWAV shall have the right to use subcontractors to perform its obligations
and exercise its right hereunder and under the Service Agreement. HomeWAV shall be liable for all acts
and omissions of its subcontractors as if such acts or omissions were performed by HomeWAV.
21. Notices. All notices under this Agreement must be in writing and must be given by either party
by prepaid mail,overnight courier service,or hand delivery to the other party as set forth below. Either
party may change its address and/or addressee for notices at any time with fifteen(15)days' prior notice
to the other party in accordance with the foregoing.
HomeWAV: HomeWAV, LLC
11100 Linpage Place
Suite 200
St. Louis,MO 63132
CSB: City of Seal Beach,California
211 8th Street
Seal Beach, CA 90740
22. Nondiscrimination and Non-Conflict Statements. HomeWAV agrees that no person on the
grounds of handicap,age,race,color,religion,sex or national origin,shall be excluded from participation
in,or be denied benefits of,or be otherwise subjected to discrimination in the performance of this
Agreement, or in the employment practices of HomeWAV. HomeWAV shall upon request show proof of
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such non-discrimination and shall post in conspicuous places available to all employees and applicants
notices of nondiscrimination.
23. Warranty Disclaimer. THE SYSTEM,THE SOFTWARE,THE EQUIPMENT AND
SERVICES DELIVERED PURSUANT TO THIS AGREEMENT AND THE SERVICE AGREEMENT
ARE PROVIDED"AS IS"AND WITHOUT WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE BUT EXCLUDING ALL WARRANTIES EXPRESSLY PROVIDED IN
THE SERVICE AGREEMENT. HOMEWAV DOES NOT WARRANT THAT THE SOFTWARE
WILL RUN PROPERLY ON THE EQUIPMENT OR ANY OTHER HARDWARE,THAT THE
OPERATION OF THE SOFTWARE WILL BE UNINTERRUPTED OR COMPLETELY ERROR
FREE,OR THAT ALL SOFTWARE ERRORS OR DEFECTS WILL BE CORRECTED.
24. Compliance with all Federal,State,and Municipal Laws. HomeWAV is familiar with,and
agrees to observe and comply with,all applicable federal,state,and local laws,statutes,ordinances,and
regulations in any manner affecting the provision of inmate video communication,and shall ensure that
its third-party subcontract installers, if applicable,obtain any necessary permits prior to installation of the
Equipment in the Facilities.
25. Assignment. No party hereto may assign this Agreement or any or all any of its rights or
obligations hereunder without the prior written consent of the other party;provided,however,that
HomeWAV may assign this Agreement to any of its subsidiaries or affiliates or to any entity that acquires
all or substantially all of HomeWAV's assets and agrees to assume responsibility hereunder.None of the
provisions of this Agreement shall be construed to be for the benefit of or enforceable by any person or
entity other than the parties hereto and their successors and assigns.
26. Indemnification and Setoff. To the extent limited and in accordance with California law,each
party agrees to defend, indemnify and hold harmless the other party,their officers,employees and agents
from and against all liability claims,actions,damages,losses and expenses,including reasonable
attorney's fees,which arises out of any negligent or will full act or omission by such party,or breach of
any obligation of the party under this Agreement. HomeWAV may,without notice to the CSB, set off or
recoup any liability it owes to the CSB against any liability for which HomeWAV determines the CSB is
liability to HomeWAV,whether either liability is matured or unmatured or is liquidated or unliquidated.
27. Severability. If any provision of this Agreement is declared illegal, void,or unenforceable the
remaining provisions shall not be affected but shall remain in force and in effect.
28. Counterparts. This Agreement may be executed in one or more counterparts,each of which will
be deemed an original hereof and all of which,when taken together,will be deemed to constitute one and
the same agreement. Signatures transmitted by facsimile or other electronic means will be deemed
originals.
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29. Authorization; Third Party Beneficiaries. Each person signing below warrants and represents
that he/she has full power and authority to execute this Agreement on behalf of the party he/she
represents. There are no third-party beneficiaries to this Agreement.
(signature page follows)
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In witness whereof,the parties hereto have caused this Agreement to be executed on the day and
year first above written,to be effective as of the Effective Date.
HomeWAV,LLC
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By:
Name: John Best
Title: President
Date: 8/2/18
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City of Seal Beach
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EXHIBIT A
The Equipment
• Five (5) HomePASTM Kiosks
• Five(5) PoE Adaptor Sets
• One (1) 24 Port Switch
• One (1) Dell SonicWALL TZ 300 Router/Firewall
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EXHIBIT B
Other Permitted Uses
• Email
• Inmate Handbook
• Request Forms and Documents
• Law Library Integration
• Commissary Integration
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Software and Hardware Service Level Agreement
Support and Maintenance
• Support and maintenance will be provided by phone support, remote access or testing and
on-site support. Phone support is available(24) hours a day, (7) days a week, and(365) days
a year. Remote access or testing and on-site support are available between 8:00 a.m. and
6:00 p.m. on business days. To the extent that any service window described herein is not
practicable given the security protocols at the applicable facility, the parties will work
together to address the problem in a timely manner.
• Maintenance/repair calls from the facility will be resolved in the manner outlined in this
section (subject to the limitations set forth above):
• "Major Emergency" shall be defined as an occurrence of any one of the following
conditions: A failure of the system processor, its common equipment or power supplies
which render the system incapable of performing its normal functions;
o A failure of the recording function or any of its components that affect the full
recording operation;
o A failure of any of the kiosks functions that result in the ability of inmates to place
visitation sessions without the use of assigned PINs; or
o A failure of the system "kill switches"or similar disabling function.
For a"Major Emergency", HomeWAV will attempt to respond to the service problem
within thirty(30) minutes of initial trouble report by the facility through the use of
remote testing or access. If the system is not accessible for remote access, HomeWAV
will have a qualified technician on site at the facility within two(2) hours from the time
of initial trouble report.
• "Routine Service" shall be defined as a system failure or problem other than a"Major
Emergency" item as listed above.
For a"Routine Service" HomeWAV will attempt respond to the service problem within
four(4) hours of the initial trouble report using remote testing or access or, if the Routine
Service is an issue/defect, the issue/defect will be resolved using the Service Ticket
Process described below. If needed, HomeWAV will send a qualified technician on site
at the facility.
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Service Ticket Process
• For issues or defects such as common "bugs"or similar problems, a service ticket is created
for the issue/defect and sent to HomeWAV's product development team.
• HomeWAV's product development team will take the issue/defect and have it documented
for analysis.
• Once analyzed, a scale is used to prioritize the service ticket and a number is placed on the
issue/defect. A combination of importance, cost effectiveness and resolution time will
determine the number.
• This service ticket is then placed on the revolving"to do" list for our programmers who
deploy the fixes based on priority.
Request for Product Enhancement(Upgrade) Process
• The staff fills out a work order request for an upgrade.
• The work order request is analyzed by the product development team to determine whether it
is a necessary universal upgrade to the system or specific to the CSB.
• If it is determined to be a necessary universal upgrade, it will be sent through the service
ticket process and developed at no charge to the CSB. If it is determined to be specific to the
CSB, a quote will be presented to the CSB for approval.
• If the work order request is approved by the CSB, the work order request will be sent to the
service ticket process.
• HomeWAV retains the right to invoice any amounts due to the CSB that were incurred in
connection with upgrades requested by the CSB.