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HomeMy WebLinkAboutAGMT - Springbook Software Inc. (Maintenance & License Agmt) (now Accela Inc) - S• SPRINGBROOK SOFTWARE SOFTWARE LICENSE AGREEMENT PARTIES: LICENSOR: Springbrook Software, Inc., an Oregon corporation 720 S.W. Washington Street, Suite 330 Portland, OR 97205 Ph. (503) 973-7750 Fax (503) 973-7760 Email: info @springbrooksoftware.com LICENSEE: City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 EFFECTIVE DATE: e /8, a coo AGREEMENT: 1. Grant of License. This Software License Agreement grants Licensee a nonexclusive license to copy and distribute internally the current version of the Springbrook Software ("Software") available at the time of purchase and related end-user materials in support of Licensee's use of the Software, as set forth below. As used in this Agreement the "Software" refers to the version of the Springbrook Software, Inc. software packages and/or applications available as of the time of purchase, in any form, and includes: 1) any future modifications, enhancements or additions to the Software; 2) any modification, enhancement or addition to the Software developed specially for Licensee's use; 3) user manuals, copies, modifications, enhancements, revisions, or updates thereof; and 4) diskettes, tapes and other magnetic media on which the Software is recorded or copied and accompanying user documentation and other related end-user materials (the "User Materials"). Licensee's license and right pursuant to this Agreement is limited to those specific Applications of the Software for which Licensee has paid License Fees as indicated on Attachment A. Licensor grants Licensee a nonexclusive license to use the Software in machine-readable, object code form only, to: a.lnstall the Software on computers that Licensee owns or leases; b.Use and execute the Software for purposes of serving Licensee's internal needs; SOFTWARE LICENSE AGREEMENT Page 1 of 23 S7296A0001A627271-3 . - • • • c.ln support of Licensee's authorized use of the Software, physically transfer the Software from one of Licensee's computers to another; store the Software's machine-readable instructions or data on a temporary basis in main memory, extended memory, or expanded memory of such computers as necessary for such use; and transmit such instructions or data through Licensee's computers and associated devices. Licensee agrees that Licensee and Licensee's employees will not assign, sublicense, transfer, pledge, lease, rent, or share Licensee's rights under this License Agreement with any third party. Licensee agrees that Licensee and Licensee's employees may not reverse assemble, reverse compile, cross compile or otherwise adopt, translate or modify the Software. Licensor agrees to house the latest release of the Software with Source Code with the president or designate of the National User Group for safekeeping. As of the Effective Date the latest release is housed with Judith Cole at the City of Turner, Oregon. Licensee shall be entitled to possession and use of the Source Code in the event that Licensor shall declare bankruptcy, go out of business, fails to continue to offer support for the Software, or in the event this Agreement is terminated due to the uncured default of Licensor. 2. Proprietary Protection; Non-disclosure. Licensor shall have sole and exclusive ownership of all right, title and interest in and to the Software and User Materials, all copies thereof, and all related material generated from the Software including material displayed on the screen such as icons, screen displays, etc. (including ownership of all copyrights and other intellectual property rights pertaining thereto), subject only to the right and license expressly granted herein. This Agreement does not provide Licensee with title or ownership of the Software, but only a right of limited use. Licensee may only copy the written materials accompanying the Software for use by Licensee. Licensee acknowledges that the Software and underlying ideas, algorithms, concepts, procedures, processes, principles, know-how, and methods of operation are confidential and contain trade secrets (collectively referred to as "Confidential Information"). Licensee agrees not to use, disclose or cause disclosure of, or distribute any Confidential Information, directly or indirectly, without the prior written consent of Licensor, except that Licensee is authorized to disclose Confidential Information to Licensee's employees or agents only as required for Licensee's use of the Software pursuant to this Agreement. Licensee agrees to indemnify Licensor for damages or costs, including attorney fees, incurred by Licensor as a result of the unauthorized use, disclosure or distribution of any Confidential Information by Licensee or any of Licensee's employees or agents. Licensee further acknowledges that this obligation shall survive the termination of this License. SOFTWARE LICENSE AGREEMENT Page 2 of 23 S7296A0001A627271-3 • S Licensor represents that it has secured all necessary licenses, consents or approvals to use the components of the Software and to sell the Software under its name. Licensor covenants to defend, indemnify and hold Licensee harmless of any loss, claim or liability in any way related to a claim that Licensee is violating federal, state or local laws, or any contractual provisions, relating to trade names, licenses, franchises, patents or other means of protecting interests in products or inventions. Licensor shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked materials, equipment, devices or processes used on or incorporated in the Software. In case such materials, equipment, devices or processes are held to constitute an infringement and their use is enjoined, Licensor, at its expense shall: (a) secure for Licensee the right to continue using the Software by suspension of any injunction or by procuring a license or licenses for Licensee; or (b) modify the Software so that it becomes non-infringing; or (c) remove the Software and refund all sums paid therefore without prejudice to any other rights of Licensee. These covenants shall survive the termination of this Agreement and are not subject to the limitations of Section 10 below. Nothing in this Section 2 shall be construed to affect Licensee's data, and Licensee shall at any and all times have full and unrestricted rights to input, remove, manipulate, extract, download, use and prepare reports utilizing its data. Data shall at all times remain the sole and exclusive property of Licensee. 3. License Fees. The License Fees paid by Licensee are paid in consideration of the License granted under this Agreement. The License Fees shall be in the amount(s) invoiced, and in accordance with the payment schedule listed in Attachment A. Services covered by the License Fees do not include Installation, Set-Up, Training, Travel Expenses, Customization, Maintenance, Support or Data Conversion from Licensee's existing system. License Fees are due upon contract signing or as agreed in a separate installment note. if the license fees are paid through an installment note, any default under the terms of said note will constitute default by Licensee under this Agreement, entitling Licensor to terminate this Agreement. All fees paid hereunder are nonrefundable and will be forfeited in the event of cancellation or termination except as specifically provided in Sections 9 and 10 of this Agreement. 4. Installation, Data Conversion and Training Charges. Any installation, data conversion or training services provided by Licensor shall be charged on an hourly basis at Licensor's standard rates (see Attachment A for rates) and are in addition to the License Fees. Training services include both on-site, off-site and telephone training. License Fees do not include travel (including travel time) and living expenses for installation and training; on-site support, installation or training; file and data conversion costs; consulting services; shipping charges; or the costs of any recommended hardware. Licensee agrees to pay such fees and costs, when and as the services are rendered and the expenses incurred. Licensor shall provide supporting documentation for all such services and expenses upon Licensee's request. SOFTWARE LICENSE AGREEMENT Page 3 of 23 57296A0001A627271-3 • • • 5. Licensee's Cooperation. Licensee acknowledges that successful installation, implementation and use of the Software cannot be accomplished by Licensor's efforts alone, and requires substantial effort and cooperation by Licensee. Both Licensor and Licensee shall at all times use their best efforts to actively participate and cooperate in data conversion, system installation, implementation, training and use, and shall at all times afford each other reasonable access to information and facilities. 6. Term; Default; Opportunity to Cure. This Agreement is effective as of the Effective Date and shall continue in perpetuity unless the Licensee is terminated for default. If Licensee discloses or transfers possession of any copy or merged portion of the Software to another party, or to a computer other than those owned or leased by Licensee, such conduct shall constitute a default under this Agreement. The License will also terminate upon default by Licensee under any term or condition of this Agreement. A party shall be considered in default only if the party, 30 days after written notice from the other party identifying a specific failure to comply with any term or condition contained herein (including without limitation Licensee's failure to pay any fees or charges due under this Agreement or any related Software Maintenance Agreement or Service Agreement, or Licensor's breach of the limited warranty provided in Section 9), has not cured such failure or breach. Upon termination of the License, Licensee shall return to Licensor the Software together with all copies and merged portions in any form and User Materials and related documentation. 7. Modifications. Licensee agrees to pay an hourly rate (see Attachment A for rates) based on Licensor's regular schedule of fees or on a bid basis for any modifications to the Software made by Licensor at the Licensee's written request. No modifications will be made to the Software until the base system is installed and all License Fees have been paid. Payment for 50% of the amount bid will be due and payable prior to beginning the modification(s). 8. Support and Maintenance. Support and maintenance of the Software is not included in this Agreement but is purchased through a separate Software Maintenance Agreement. 9. Limited Warranty and Exclusions. LICENSOR WARRANTS THAT IT HAS TITLE TO THE SOFTWARE AND THAT IT HAS AUTHORITY TO GRANT THIS LICENSE TO LICENSEE. LICENSOR ALSO WARRANTS THAT, FOR A PERIOD OF ONE HUNDRED AND EIGHTY (180) DAYS FROM THE DATE OF LICENSOR'S INITIAL INSTALLATION OF THE SOFTWARE AT THE LICENSEE'S SITE, THE SOFTWARE WILL FUNCTION IN CONFORMITY WITH THE DESCRIPTION, SPECIFICATIONS AND DOCUMENTATION PROVIDED, INCLUDING, WITHOUT LIMITATION, THE REPRESENTATIONS SET FORTH IN ATTACHMENTS B, C, and D. LICENSOR MAKES NO WARRANTY REGARDING THE USABILITY OR CONVERTABILITY OF ANY OF LICENSEE'S PRE-EXISTING DATA. ANY SOFTWARE LICENSE AGREEMENT Page 4 of 23 S7296A0001 A627271-3 • • DEFECTS FOUND IN THE SOFTWARE WILL BE REPAIRED IN A REASONABLE TIME PERIOD AND UNDER THE TERMS AND CONDITIONS OF THIS WARRANTY. LICENSEE AGREES THAT THE FOREGOING LIMITED WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES OF LICENSOR AND LICENSOR DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS OR ADEQUACY FOR ANY PARTICULAR PURPOSE OR USE, QUALITY OR PRODUCTIVENESS, OR CAPACITY, OR THAT TI-IE OPERATION OF THE SOFTWARE WILL BE ERROR-FREE. NO ACTION AGAINST LICENSOR FOR BREACH OF THIS LIMITED WARRANTY MAY BE COMMENCED MORE THAN 60 DAYS AFTER EXPIRATION OF THE WARRANTY PERIOD STATED IN THIS SECTION 9. 10. Limitation of Remedies and Liability; Exclusion of Consequential Damages. The cumulative liability of Licensor to Licensee for all claims relating to the Software and any services rendered hereunder, in contract, tort, or otherwise, shall not exceed the total amount of the License Fees paid to Licensor for the relevant Application(s) of the Software. Licensor's liability for breach of warranty exists only during the warranty period set forth in Section 9. In no event shall Licensor be liable for any consequential, indirect, special or incidental damages (including, without limitation, damages for loss of business profits, business interruption, loss of business information, or other pecuniary loss), whether arising out of contract, tort, warranty or otherwise, even if Licensor has been advised of the possibility of such potential loss or damage. The foregoing limitation of liability and exclusion of certain damages shall apply regardless of the success or effectiveness of other remedies, and applies to claims pursuant to the limited warranty created under this Agreement. 11. Confidentiality. Employees of Licensor in the course of their duties under this Agreement may have access to financial, accounting, statistical, patron records, and other data maintained with the Licensee's computer systems. Licensor covenants that all data, documents, discussions, or other information developed or received by Licensor or provided or exposed in the course of the performance of this Agreement are confidential and shall not be disclosed by Licensor without written authorization by Licensee. All Licensee data shall be returned to Licensee upon the termination of this Agreement. Licensor's covenant under this section shall survive the termination of this Agreement. 12. Y2K Warranty. Licensor hereby represents and warrants that the software is year 2000 compliant. For purposes of this warranty, year 2000 compliant means that the Software is designed to be used prior to, during, and after the calendar year 2000 a.d., and that the products: (.1) will not provide invalid or incorrect results or abnormally end or fail to function as a result of any date data; (2) will correctly differentiate between years, in different centuries, that end in the same two digits, and will accurately process date/time data (including, but not limited to, calculating, comparing, sorting, and sequencing) from, into, and between the 20th, 21st and 22nd SOFTWARE LICENSE AGREEMENT Page 5 of 23 57296\0001\627271-3 • • centuries, including leap year calculations; and (3) will provide that all date-related user and data interface functions, including input and output functions, and data fields include an indication of the century. The foregoing representations and warranties are subject to the limitation that any computer system (whether hardware, software, or firmware) which must be used by Licensee in combination with the products is capable of accurately providing exchanging year 2000 compliant data with the software. The remedies available to Licensee under this warranty shall include repair or replacement, at Licensor's sole expense, of any software whose non-compliance with this warranty is discovered and made known by Licensee to Licensor in writing within ninety (90) days after discovery of non-compliance. This warranty shall survive the expiration or termination of this contract and is not subject to the limitations of Section 10 above. Nothing in this warranty shall be construed to limit any rights or remedies Licensee may otherwise have under this contract with respect to defects other than year 2000 non-compliance. 13. Governing Law; Venue. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Oregon as it applies to a contract made and performed in such state, regardless of the place of execution or performance. Any action brought by either party hereunder may only be brought in the Federal District Court in the State of Oregon, or any state court in the State of Oregon. 14. Entire Agreement; Licensor and Licensee Representations. This Agreement is the complete and exclusive statement of the agreement between Licensor and Licensee and supercedes all prior and contemporaneous negotiations, discussions, proposals and understandings, oral, written or implied, including those involving any agent of either party, relating to the subject matter herein. No representations or statements made by either party or either party's agents not expressly stated herein are binding on either party. Licensee represents and warrants that it has conducted its own due diligence investigation of all facts material to this transaction, that it possesses all information and expertise and capacity necessary to conduct such investigation, and that it possesses sufficient technical and accounting expertise and capacity (including sufficient mastery of the principles of fund accounting) to use the Software for its intended purpose. 15. Modification. The terms of this Agreement may only be modified, expanded or added to by a written agreement executed by the parties. No oral communication between the parties or their agents before or after execution of this Agreement shall be binding upon either party unless the parties expressly agree in writing to the terms of such communication. [Signatures continued on page 7.] SOFTWARE LICENSE AGREEMENT Page 6 of 23 57296\0001\627271-3 • • IN WITNESS WI-IFREOF, each of the parties hereto has caused this Agreement to be executed in duplicate by its duly authorized officer or representative. LICENSOR LICENSEE i j- By / L.�A. / . ���, j By 4/1/ Z7/ ��•• Title: , R0Th /� CO Citle:�i�/eu�-rte ✓y��llc a�w Date: I,, .� ,�i/,4 , 20 (/ Date: GC7iceµr �f� /8 , 2000 SOFTWARE LICENSE AGREEMENT Page 7 of 23 S7296\0001\627271-3 I • ATTACHMENT A SCHEDULE OF FEES Attachment A contains the most recent price quote issued to Customer showing the applications and services being licensed and/or purchased, the current cost for other services, and a schedule of payment terms. By signing the Attachment A, Licensee is agreeing to the schedule of fees for the duration of the implementation. A ltca iort/ • oducts/ Fieens ` sAg, Pro-ec . , , ., ,„as . Se s Maint n ice Services j Itemize•' $ . Fees $15,000 $ $ $4,140 Financial Suite Including: • General Ledger • Accounts Payable • Check Reconciliation • Budget Preparation • Purchase Orders • Central Cash 18000 value n/c $8,000 $ $ $1,440 Project Management $3,000 $ $ $540 Misc. Accounts Receivable $10,000 $ $ $1,800 Permits & Licenses $7,500 $ $ $1 ,350 Inventory $11 ,000 $ $ $1,980 Utility Billing Ubpayments.com Set Up $5,028 value n/c See Note $540 Datamatic Meter Interface $3,000 (Figures do not idled cost of custom program modifications,form formatting,custom reports development) Total A llcatlon Costs °' ' $5'7 500 $y $ ;fl)l �' P � � � � , �-�; ��8�000 'js� �`4 000 '�''��� $5 895�prr- estif 4 t�, +gtsxw '- ,s °aig da sr ` ` ,,31.0t. 4- rated to 7-1 o-c ran ,?.#'��ails' -i,n,m h.u�.,,�.e�a�:.k� "��.+�'+.a�i:�*t r"�.�'';Y a�IS;na Database Manager: Progress Database Fees $13,750 $3,438 (25 users) Progress Report Builder $1,000 $250 (One seat) LL1rit {.+z0.t; 4:44# `,N ikl°'�!` y rt` ri 'dam s lE. '.1 {r-:, ° 1:�111 �i` `^7' F Mlscl prodiz{cts-and Servtces=rts;r ; ;„': .11 tat,. la i i'ts r,T” Slat Scanner-LS 9100 $3,300 (2) Plus$80 shipping (+Azalea Software) Cash Drawer $1,000 (2) Plus$80 shipping SOFTWARE LICENSE AGREEMENT Page 8 of 23 57296 30001 3627271-3 • • Axiom Receipt Printer $2,200 (2) rtes$80 shipping (Other models Validation model available) Springbrook UB/fin/payroll $5,000 master file data conversion Travel Expenses: $3,500 Not to exceed TolaltS rlri>hrookiPro ar $ 127°383 ' (includes 62 "° On ,`r'� :? u k?xrkt t, �" ' .'r r 3 `a- 9 k�¢ SOnttl5 an+Hr y "i .I�, N„:1 � � :Nine' apps) 9 5131 rmfi ;t' Optional Products and Services: $12,995 $4,200 $2,100 $2,599 Alliance HR (by Automated Environments) ** based on rip requirements—addtl functionality requests could result in addtl costs AllianceHR conversion $7,000 (optional) Travel Expenses: $1,700 Not to exceed Note: Training on the finance Modules may be reduced if the city decides to train a trainer. Prices valid 90 days only. **-Alliance I luman Resources will be sold directly by Automated Environments under a separate contract. Total Project as Outlined Above (including Optional Products & Services:$159,667 The project, as outlined in this Attachment A, WILL NOT EXCEED $160,000. Any requested changes to the project as outlined in this contract may, however, result in an increase in cost. No increase in cost will be incurred without the prior written authorization by customer. Note: Springbrook will waive the set up charge for the Ubpayments system. However, you will have to set up all Internet Merchant Account through your bank or Wells Fargo and also a Verisign Account. They do charge a nominal set up charge for those. Wells Fargo charges $25/mo mininum and Versign charges $15/mo minimum and Springbrook will charge you .3% on all financial transactions processed using this system with a minimum monthly charge of$83.33. SOFTWARE LICENSE AGREEMENT Page 9 of 23 57296\0001\627271-3 • • OTHER SERVICES: After hours support $ 125/hr (Maintenance contract covers support from 7a-5p Pacific Time, Monday through Friday) Data Conversion $ 125/hr (Transferring data from Licensee current system) (or as bid) On Site Installation $ 125/hr • Network & Operating System Consulting $ 125/hr (Answering questions and assisting users and/or their consultants with all aspects of hardware, networks, and operating systems - includes installation, set-up, and troubleshooting) Training $ 125/hr (The training necessary for the average user has been included with the project total above- additional one-on-one training, if requested, shall be billed at $l25/hr)—also see classroom training below Classroom Training $600/day (Most classes are billed at $600 day for first student and $100 day for additional students from same organization) Travel Time (billed one way) $ 125/hr (For on site services) Travel Expenses Actual (Airfare; hotel; meals not to exceed $35/day; car rental; gas; parking) Telephone training $ 125/hr (Working with a trainer or customer support representative on questions other than support related issues (as defined in Maintenance Agreement) where the call exceeds 10 minutes in length is considered training rather than support and may be billed as such) Weekend/After Hours Training On-site rate $ 175/hr Telephone rate $ 175/hr Support Not Under Maintenance $ 250/hr (min charge per call 30 min) These are current rates for services and are subject to change within twelve months of executed date of this contract. SOFTWARE LICENSE AGREEMENT Page 10 of 23 S7296A0001A627271-3 • • • • • Schedule of Payment Terms: Springbrook License Fees: 75% ($43,125) due at contract signing: 25% (14,375) due upon first successful data conversion (Note: If G/L; A/P & P/R are successfully converted prior to UB, we request the remaining 25% of those applications be released for payment without waiting for the UB conversion, and vice versa) Database Fees: 100% ($13,750) due at contract signing Report Builder: 100% ($1,000) due at contract signing Training: 50% ($9,000) due at contract signing 50% ($9,000) due as training is completed on applications Implementation ManagemenL50% ($7,000) due at contract signing; 50% ($7,000) due at project completion (customer is live) Is' yr Maint: Fees: 100% ($5,895) of 1St yr pro-rated from Jan 1 - June 30th (Springbrook) due at contract signing 1`1 yr Progress Maint: ($3688) due at contract signing Data Conversion(s): 50% ($2,500) due at contract signing 50% ($2,500) due upon completion • Hardware: 100% ($6,740) due at time hardware is ordered Travel Expense: Not to.exceed ($3,500) billed and due as incurred (Springbrook) **Note: a 40%increase in maintenance fees will occur if final training certificate is not received and maintained by all applicable users.Amount bid will only be less if the assigned software consultant and/or implementation manager certifies that the user(s)have obtained the required skills to run the applications in less than the minimum training quoted in this contract). If key personnel replacement occurs,Springbrook reserves the right to require that the new employee(s) acquire certified training. Budget Authority: The majority of Springbrook Software Clients must have proper budget authority to make a major purchase,such as new software. It is important to remember that if your implementation project crosses budget years, it is your responsibility to ensure you have re-appropriated any remaining contract funds in the next budget year and have proper budget authority to complete the project. Springbrook Software can help you determine what remaining contract funds need to be re-appropriated, if this situation arises By my signature below, I confirm that I have read,understand and agree to this Attachment A,Schedule of Fees: 4 t ., ii24, ell? z/i Woo I n (,ignat'/e�) (Date) ft / 0,00C . /Y-IYhc:/s— %tr3i SOFTWARE LICENSE AGREEMENT Page 11 of23 67296\00013627271-3 Attachment B Data Conversion ("Explanation of') Data Conversion Two types of conversions will take place after you have signed your contract with Springbrook Software. There will be a system conversion (also referred to as the entire implementation process) and there will be a data conversion. The system conversion is the entire process of moving from your old system to Springbrook Software's system. It includes the data conversion, training, enhancements to software, etc. The data conversion is the process of extracting the data from your old system and manipulating it so that it can be seen and used in your new Springbrook system. If a data conversion is not done during your system conversion, you will need to key the data from your current system into the Springbrook VS system. The primary purpose of the data conversion is to reduce the amount of data that you would otherwise have to enter into the VS application. You should be prepared to have more than one conversion of the data from your current system into the Springbrook VS system. It is standard to have two to three data conversions when implementing the VS applications (more so in utility billing than on the finance side). After we receive the data from your old system, the conversion specialist will spend time deciding what information should go where and how to make the information appear in the correct form. (For example, when the specialist looks at customer names, s/he will make sure that the last name will appear in the last name field and the first name will appear in the first name field.) The conversion specialist will then work with you to determine the best methods for formatting data from your current software. In addition, you may wish to have the conversion specialist discuss various conversion options (full conversions, partial conversions, spreadsheet conversions, etc.) with you. More often than not the only system we typically convert data for is Utility Billing as most clients wish to take the opportunity to clean up master files in their other systems and the keying of that information is not nearly as time consuming. Springbrook has standard information that is extracted and converted during the data conversion process. However, there maybe other information that you want to include in the conversion. Conversion of data is completed on a"Best Effort" basis only. Due to the complex nature of file structures and variations in data types and field types, it may not be possible to convert all of the data from your current system into the VS applications. If there is data that you would like to convert that is non-standard, Springbrook will convert that data as a "Best Fit". This means that Springbrook will attempt to extract the data that cannot be converted into pre-defined VS fields and place that data in a memo field in the VS system. Converting non-standard data may increase your conversion costs. You will be responsible for re-keying any unconverted data as necessary. Springbrook can provide services to re-key information as needed for a fee. SOFTWARE LICENSE AGREEMENT Page 12 of 23 57296\0001\627271-3 • • Pulling Data From Your Existing System Shortly after your implementation start date, we will ask you to send a copy of the data from your existing system to the Springbrook conversion department as planned during your data evaluation. The information can be sent in a number of ways: over the Internet, on a Zip disk, or via another way you have previously agreed upon with the conversion specialist. The specialist will ask you to provide the data in one of the approved formats listed below. You will also be asked to provide a list of data definitions. Immediately before the data is pulled, you need to run a trial balance report in your old system so that after the conversion the data in both systems can be compared and balanced. Acceptable Formats of Your Data: Fixed Length ASCII ASCII Tab Delimited Below is an example list of how the conversion specialists would typically like to see the file layout for your data. This file layout is not mandatory, but data not in this layout could cause your conversion costs to increase. Column Field Field Data Size of Is Field Num Name Description Type Field Used Cust_No Customer Number Numeric 9 y 2 Last_Name Alpha 25 y 3 Con_date Connection Date Date 6 y 4 Serv_Com Alpha 50 n Keys and hrdexes Key Fields Sort Order Primary Unique Allow Null PKI Cust_No Ascending Y y n Example Last Name Ascending N n n Example2 Con_date Descending N n y Data Conversion When your data arrives at Springbrook, the conversion specialist will write a program that will convert that data into data fields in the VS Utility Billing and/or financial systems. Once your data has been loaded into a VS database, the conversion specialist will work closely with a trainer to verify that all the data is appearing accurately in the V5 system. After the trainer and conversion specialist have corrected any errors they have seen in the converted data, you will be asked to verify the accuracy of the data with them. Please be aware that difficult conversions can prolong the V5 implementation process. If there are unexpected problems encountered in the conversion of your data, Springbrook SOFTWARE LICENSE AGREEMENT Page 13 of23 57296\000n627271-3 • • will notify you, work with you to adjust your implementation schedule and keep you apprised of the status of your conversion. Cost of Data Conversion The anticipated cost of your data conversion has been provided in this contract. This cost is for up to three separate data pulls and conversions from those pulls. However, certain factors may cause that cost to exceed the amount quoted. See section below titled "Not Included in Estimate". Not Included in Estimate There are a variety of factors that can influence the cost of a conversion and a variety of items that are not included in the standard cost estimate for your conversion. For example, your estimate will not include the following: Removal oCdata from your existing system. Consulting on removal of data from your existing system. Changes or modifications requested after the first conversion and different from the specifications we originally received. Changes in the format we receive the data in after the first conversion. More than three conversions. Cost Factors In addition, the following items can increase the cost of your conversion: Mixed formats of data (a file containing tab delimited and comma delimited format). Problems with data integrity. Data manipulation not for the purpose of the conversion, but for the purpose of supplying you with information you did not previously have access to. Changes in the file format after the first conversion. Changes requested to the data after the second conversion. Upgrades to application software during a data conversion. No cost or fees in excess of those set forth in the Schedule of Fees will be incurred by Licensee without prior acceptance of Licensee as indicated on a signed work order. Conversion Contacts Please understand that conversions can be a time and energy intensive project. With your assistance, Springbrook will attempt to make your conversion process as smooth as possible. If you have questions or concerns about your data conversion, please direct these to your Implementation Coordinator. Your Implementation Coordinator will gather the information you need or direct you to the proper conversion contact. SOFTWARE LICENSE AGREEMENT Page 14 of 23 S7296A00013627271-3 • • Attachment C UTILITY BILLING IPS Findings The City of Seal Beach • Utility Billing IPS Findings 06/07/00 Participants: Pam Arends-King, Director of Administrative Services, COSB (562) 431-2527x311,PARENDS KING a,Seal-Beach.ca.ns Kathy Hull, Accounting Manager, COSB (562) 431-2527 x312, khull @ci.Sea1-Beach.ca.as Mike Magaldi, Software/Hardware consultant, COSB (562) 799-4100 x145, MagalQci.Seal-Beach.ca.us cell#(949) 234-5871 Jay Kendell, Marketing Consultant, Springbrook Software jayk @sprbrk.com Summary In speaking with Pam and Kathy, my findings are that Springbrook is a perfect match with this city and their requirements. Their needs are to have a complete and fully integrated financial and utility billing package, to streamline their programs and internal procedures such as inventory and backflow so that are not running duplicate modules. The findings from this Implementation Planning Session/Demo indicate that they have no need for any custom modifications or interfaces in utility billing except for the minor change in rate tiers that should only take a couple of hours to modify. This is so minor of a task that there will be no additional charge to the district for this change.The only interface needed at this time is the Datamatic meter reading interface. They may like in the future,to add additional products such as Postalsoft, which we already support. Because of the location and their knowledgeable and friendly staff, this would make an excellent showcase sight. Time Frame • Are anticipating sending out an RFP. Council seems to be the largest delay. Anticipating last quarter implementation. They have already looked at our financial suite with Roberta. Current Software • MOM's system since 1994 with Windows update in 1998. Pam and Kathy are excited about moving to new software, however, there may be resistance with other users. Pam has been at the city for a while; Kathy is new to the city and her position. She came from another city where they used Pentamation Software. Their council may not be as anxious to move to a new system. • Conversion • Not expecting to go forward until Nov. of 2000. Pam and Kathy have both been through conversions before. Pam knows what to expect from a conversion, both the pros and cons. • Need to have George look at the data. He has tried to contact Mike already. SOFTWARE LICENSE AGREEMENT Page 15 of 23 57296\0001\627271-3 • • • The population of Seal Beach is approximately 27,000 and their UB base is now 5037, with plans for development this year that would add 100-200 new accounts. Hardware • • Currently, the IS director is Mike Magaldi. He is on a contract basis with the city but has worked there for several years. • They have 2 servers both are Pentium 11 with 256K of RAM. They have 5 stations that will be running the application. • The printer is an OTC 850 laser, which is networked. • Will probably only need a 5-user Progress license. • There are 2 domain servers; 1 for COSB and 1 for SBPD. There is a firewall between the PD and the city. Meter Readings • Datamatic is the current handheld provider with no plans of changing vendors. The model is Telxon MCO-860; software is RoadrunnerV2.46. • Touch read meters that are read bi-monthly. Finals are always read when needed. They currently have 24 routes, which are actually cycles and 8cycles, a term used by Datamatic. There will be some confusion with these terms for a while. Knowing this, they actually bill by route. • The meters are all read in cubic feet all in water. • They have no sewer meters or any other special meter to note. • They do not use compound or subtract meters. Sensus is the common brand of meter that they use. • When it is time to change out a meter, the `yard' changes it out then give the information to the office. • They do occasionally estimate reads in the case of the meter being unable to be read such as a car parked on the meter. They base this estimation on the prior years consumption. • They don't receive reads of any kind from another source. • If they have more than one meter hen they set up a separate account for that meter. I don't know if their current system gave them that as a limitation or if that is policy. Backflow (if applicable) • N/A at this time. May be interested at a later date. They are currently running a separate program for backflow but Mike, IS manager, would like to have everything integrated - that is why he likes SSI. He wants to utilize the backflow module and the inventory module. Their current backflow is handled by another system and piece of software. They would like to convert to Windows 2000 and wanted to know if it is compatible. They are planning the upgrade in about 3-6 months. Yes, the new version of Progress, 8.3C, supports this version of NT. SOFTWARE LICENSE AGREEMENT Page 16 of 23 S7296A0001A627271-3 • • Containers • N/A at this time. They currently are billing for the refuse company but don't track any type of containers or pickup days. They track just the dollars charged and payments. • Everyone is a flat rate based on the bin size. If an additional pickup is required the sanitation company bills them directly. Billing Rates • They bill bi-monthly. • Services billed for: o Water—based on consumption and meter size only. o Sewer- the charge is 22% of the total water charge. o Water Capitol Tax- flat rate based on meter size. o Sewer Capitol Tax-flat rate based on meter size. o Street Sweep-flat rate. o Tree Trimming-flat rate. o Fire-flat rate but not many accounts using his service. • They have no flat portion of the water bill. It is all based on consumption. • The rates are set up as a 3-tiered-rate structure. However, it is not a graduated tier charge. For example, if the tier is set up at 0-10 to be charged 1.20 per unit and 11-20 a 1.50 per unit and 21-9999 at 1.75 per unit and I used 15 units, I would be charged 1.50 for 15 unit not the first 10 @1.20 then the next 5 @ 1.50 and so forth. Likewise if I used 25 units all units would be at the 1.75 rate charge. • Sewer is based on 22% of the total water. • They do have 1 account that they handle differently. This account is Leisure World; a retirement community that they have their own rate, and only 1 bill goes to thecomplex. It is very large and we need to be able to handle for that which I know that we can already. The complex then in turn bills the tenants. This complex is billed for water only. They are not billed for sewer or for garbage. • They want to be sure that they can suspend the garbage service and continue to bill for water. They can currently do this in their MOM's system. • Everything is billed on arrears. • Final bills are based on the number of days in the billing period. • They do have a water capital tax that is a flat rate based on the meter size. They are also incorporating a sewer capital tax based on the meter size as a flat rate. • They then bill for street sweep, tree trimming and have a few fire rates. • No special discount is given to a certain business, group or class. Billing Process • They bill bi-monthly by route. Each route is its own cycle but they use the terms cycle and route differently than we do. • They bill in-house. • They will need all of the reports that we provide along with an account summary and graduated total for billing. They are aware of Report Writer, ODBC and Access. The IS manager, Mike, seems very comfortable and glad that we have SOFTWARE LICENSE AGREEMENT Page 17 of23 S7296A0001A627271-3 • • these capabilities and plans to implement classes for those that May need additional or modified reporting. • There is never a time that an entire account will be suspended, only a service on that account. • There is a $15 initial connect fee that they bill for. • A charge of$25 is assessed for non-pay of services. A greater fee is assessed if turn on happens after hours. Billing Statements • See attachments. • They are going to use a laser printer and forms. Probably will stay with the same statement format, which is 4-to-a-page card stock. • They have not yet completed the worksheets. • They are excited about the multiple copies of bill and the bill-to feature having not had those abilities in their current software. • No immediate plans for using Postalsoft but may in the future. They also may want to add bar coding. Winter Average Maintenance • N/A. Will never use. Cash Receipts • They receive payments via drop box, lock box (Bank of America), front counter (using a cash drawer) and mail. They do want to utilize the direct debit option. • The B of A batches come in with the stubs and a proof list. • A receipt is needed only when a payment is made over the counter. • Currently entering payments manually but going to a scanner. • Payment priorities have been done equally by service because of MOM's. • The batching process will work fine. They only were conscious of one special batch and that was the one that they received from the lock box. • They have seen our financial suite, but will outsource payroll. They will want to use Central Cash. Payments for GL hit in a lump sum. • Adjustments / Manual Billings • Adjustments are handled much the same. Approval is needed for each adjustment on an account such as for leaks, misreads, misposted cash etc. • No special manual billings. Past Due Processing • There are 2 notices: a 30 day late notice which hen allows them 10 days to pay, and a doorhanger that gives them 24 hours to pay or be shut off. (See attachments) • The sane hardware is used for these notices. The door hangers have some preprinted lines and then they are filled out by hand. • There is a $25 fee charged to turn the water back on. The other notices have no charges attached to them. SOFTWARE LICENSE AGREEMENT Page 18 of 23 S7296A0001A627271-3 • • GL Distribution / Services • Each service has its own fund or general fund. See examples below. • Distribution is handled on an accrual basis. Outline of how each service billed hits GL funds: �E ..i ninilt " - r "k� �. t ;3� -r .. m.a d w»-� � mn .'. yService _ v 'U;roriV F nil j F�F ! iPa�aklitnonty: O r. % Water Water fund Sewer Sewer fund Water Capitol tax Water Cap fund Account Maintenance • Reports needed during billing: 1 for comparing GL and a subsidiary variance report. • All accounts get the same services except for Leisure World. • No large issues here. Service Requests • Currently using another method for requests but may use ours in a small capacity. • If changes are needed they will use Report Writer. Reports • Very interested in the auditing reports. Write Off/ Liens / Collections • Shut off goes to property owner. This has been a tedious task in MOM's • They never write off a debt and have no relationship with a collection agency but may in the future. • Currently they have the `power' to apply liens, but so far have not done so. Finals / Connects • An average of 40-50 connects/finals a week is done. • The owner is the responsible party for the debt on the property. Deposits / Refunds • Deposits or refunds are not used at this time. Customization Summary yjp tYe ��i fit.k�{ Ji ,y bK 1�tA}yd�,W '�"p q( Y jett , 3"Sb*ft9°.IH�s. ;�} z`� A a .'. *�`Ci '� 0' .4t 1'94 1'' . A iy,�,., gar + " #���Feahuos,�� . ��. �!�, t�- �!m� :�- �,* ;€.e,rt �:S�vtHouaEstimate..ts:� None identified during IPS —as of 6-7-00 0 SOFTWARE LICENSE AGREEMENT Page 19 of 23 57296A0001A627271-3 S Attachment C, cont'd 06/05/2000 FINANCE AND PAYROLL IPS Findings On-Site IPS: June 5, 2000 Participants: Pam, Kathy, Bryan, Joanne - City of Seal Beach Suzanne Riggs, Roberta Heinz— Springbrook Software Time: 1:00—5:15 Pam as the Finance Director is responsible for the full financial function. She is a hands- on director. Kathy is learning the finance function and assists Pam. Bryan is the primary contact for Accounts Payable and Purchase Orders. Joanne works with the Accounts Receivables. All of the above people are cross-trained to perform certain functions in each other's areas. They currently duplicate many entries from other departments in order to get the information into their current software program. The support issue is very important. We discussed the philosophy of customer support and I described what the procedure is at Springbrook Software. Suzanne will email her a list of all personnel involved in customer support in our finance team. General Ledger— Seal Beach uses modified accrual. Their current program, M.O.M., has a chart array of Fund, Object, Department. Our array of Fund, Department, Object will work just fine for them. The chart sections consist of the following lengths—Fund— 3 numbers, Department-3 numbers, Object— 6 numbers. They have consistent object numbers across funds. Their fiscal year is from July 1 to June 30. The ability to group and total by account type is something that Pam will utilize to get some of the reports she needs on a regular basis. The ability to inactivate accounts and adjust the GOTO on accounts is also a welcome feature. They write payroll liability checks out of an account that is separate from the accounts payable checks. They also have checks for another account at the bank that is reserved for grant expenses. All of the accounts reside at the same bank. Pam says that they do straight forward accounting and she does not believe they have any report requirements that would be out of the ordinary. We explored the Data Monster and the possibilities of manipulating the data within the program to produce the reports that the council will be able to understand. The budget process currently within our program will help them greatly. The export function will enable the department heads to enter their requested amounts and allow Pain to import them into the software. The department heads are responsible for their budget. Pam is the architect of the final product. They do have some lines that would SOFTWARE LICENSE AGREEMENT Page 20 of 23 57296300013627271-3 • • apply to periodic budgeting. CwTently they budget the total evenly across the twelve months. Recurring journal entries will be a time saver for both Pam and Kathy. The reversing journal entry function will be a useful tool also. We went over the retrieval of committed journal entries from other modules. The viewing and printing of committed journal entries will be helpful for Pam. Pam will print out a list of committed journal entries for a date range each month to help her with her reconciliation. Having this all in one place will be very convenient. Payroll— Payroll is outsourced and there are no immediate plans to bring it in-house. They are very satisfied with the vendor. Purchase Order—They do not use the purchase order program that they have in their current software. They do issue purchase orders. They will use the approval process. Eventually, the departmental services with the requisition feature will be a nice upgrade for them. They would like the system to compare encumbered plus expensed to the available budgeted amount and be alerted if the amount on the current entry will exceed available to spend. They agree that they should be alerted but be allowed to continue if they so wish. We meet Pam's expectations for the encumbrance process. We also went over the re- encumbering of purchase orders in a new fiscal year. Cash Receipts—This is a very important module for Seal Beach. They are concerned with the security of the entry of the receipts. :Springbrook Software has addressed the fact that the user's ID is visible during the entry of the receipt. The field for the user's ID will be filled with asterisks so that the sign-on will not be visible to anyone. When the user clicks on OK and moves to the next receipt, the user ID will not be saved and will have to be entered again. This is a planned enhancement and Seal Beach will get these features. Cash is input at four locations. The category process will be a useful feature especially to the planning department. Pam asked if there was any way of seeing what a specific customer had paid. 1 showed her the Display function where the customer!was selected and all transactions were displayed. She will also be able to get this out of the reports function so she will get a hard copy of the information viewed on the Display window. We went over the quick UB, central cash, cash drawer and the basic cash receipt input process. There are numerous items that do not receive a receipt (mailed in items). They also will not be creating a customer number for each receipt. Since these are normal procedures for many other users, we will meet these needs. SOFTWARE LICENSE AGREEMENT Page 21 of 23 S7296A0001A627271-3 • • Accounts Payable— Bryan has primary responsibility for the AP function. We went over the interface with the purchase order program and the manner in which lines are paid. The entire accounts payable process will meet the needs of Seal Beach. There is nothing unusual in the manner that Seal Beach uses to process AP. Checks are printed before the council meeting and they approve the check register. The council is not interested in the account distribution of the expenses,just the net of the check. Project Management— We touched on project management as each module was opened. The overview of PM was quite quick. Pam understands the concept and has already projected how she will use the features of this module. Accounts Receivable—They have a small quantity of AR each month. They may just use UB to process AR. The items they bill for are not consistent but I feel that there are ways that Joanne will be able to utilize the module. Miscellaneous - Jay will take the Finance Implementation manual to Pam. The pages that need signatures will be marked. Project and Implementation leader will be Pam. Overall Impression — an excellent fit for our software. A good client/software match. Customization Summary � ' 3 k‘ - N rd l „ : r4-^ 80�. a ' a IT R fi rftgi gEeatii ei a ga ,t 4 t t at 414Estriii4 e u None identified during IPS 0 By my signature below I agree to the above stated Implementation Planning Session (IPS) findings as stated in Attachment C of this License Agreement: 411'7 Mil.�hI �(SigflatuSeY) ( ate) J'CV l(La'f)c/0 relic S li l /,t/�l 1- • /Nc,l7 (Prix ted Name) SOFTWARE LICENSE AGREEMENT Page 22 of 23 57296\0001\627271-3 • ATTACHMENT D RESPONSE TO REQUEST FOR PROPOSALS Attachment D contains Springbrook's Vendor Response Sheets which were submitted to Customer in response to Customer's Request for Proposals. Springbrook represents and warrants that its responses are true and correct as of the time of the execution of this • Agreement, and that its responses were prepared in accordance with the following instructions: "Vendor Response Sheets Instructions: "All vendors must response to ALL of the following detailed specifications with one of the following responses: I — Feature included 2 — Requirement met by using existing tools or a workaround (explain in Comments column) 3 —Functionality cannot be provided "Without exception, items with no response or with a response other than "1" through "3" will be considered a "3". "The Comments column can also be used for vendor general information responses and for clarification where necessary. If more space is required, additional notes should be contained in an addendum following this section with a reference to the specific line number to which they refer. 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' ': O W v LI O ` p L v E C O `D a C x 4 ` u V p W I W O O 2 t C co L T u u cc kji P- 0 v n Q C C E.--, v ril P - u 'o :: . � = c V ' C o O N "O n. 'O tit m p > N u O E m o 0 w N m0 I '1 ml � EO nA m c A >.. CO C.- 0L5 oo ° 5 = 7 m m _ o K ii N a V V O v v 0 z A. T I o a _ o c A D .. v ` o D i. o =Q 0 L 0 a ` E v v v - v m' _ 2 m o u a o . ) ` Ev 0 5 . .J >, c a Q' N a U a v v M >..o v v E a o o . y of N a o v E• O. K a . L .O c ti c u _ o . c I W c C. no _ ° '^ E vI ` a 9- o c - No CA c o c c c c n E c ` a o ' - = ° Q t0 0 E � � o o n o • v Y p o 0 o p E v o u ° A D o p '73 _ CD w `^ ° E U 8:.i c c c p .v i 0 u I af; ._ >. F n _ = E v. u IA v v ,- a E ' 5 5 v el E V , ' . L':_1 R r Q Q U Q Q Q Q K Q 7 7 CO K Z a cC ES -:° D ° r v F o m 'o .o o o o z a O .. Q. ° r1v QQ 5 _ '-. i 1; A E-aaa 2 CC M cf v : ^ W O ' N N W 0 V V P V V O mo V V V V V O R 0 V V V V V N M V in 'L a a CO CO 0. 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(n " P a 8 p = cr "j y X o o v _O o .G O E G = p > I u O y C o t >. �o c ° N u Se o Fa v 1E v n o 41 k N A O c, o .O > U F a .0 L S O 12 N _ g V - n Q v v F v v w t.r. L7 n o ° o v v a - ? v ^- ° a E ° W 2 F >' 9 o O o c - ° m . . n82 2 C O -- o v o u ° 'o E ' '9 L. o E E b oa v = n "E = = F N ` EoF - o ' A vp 'o - v 'O 2I- c ? DNt.- i" H 0v v9 Ec : o � O E V '0 = c C _ 0 . c F .K.:s .1- d 0 C ' s -3 oo;Q c .. ` ' c m o m O oI a v E F O v P '' O o a - - a A O U '0 =a L� r2 Y 6 o o n Y v v' > w O O C E E 9 o U °- a0 h 0.9 a o v 0 v V o E . .E o ✓ _ t o .. N o . o c o ` m - o h l cn t a s E E a,, m c.=,9 a m ' °Z' -o -o ;=. .c c n ° c o.7, o o. C u H 2 ,n w o22 •0- 8 ,, o m o 0 o c o n o ,v , ,97, 2a.- 00000E v g o v m o o o Lo m Z` 'a ° ''a � ?�a 2`a a D v a:N =>' T = = D I -_ 0 := ,. _ P4 22 7 P P at O E - A Q A y O p 0 0 y 0 • o. on - : < D C co o L E E 3or 3 .O Q . 1i 4 Q Q u. a. U Q a ? ¢ Q dr., a` 2 a. dr. ° Q Q 0 0 0 E Q a. a 3 Q ¢ TO 2 3 q 1 zo — N r� �{ h v r w a o i rOM vt .O f-- w a N N N 11: N N N N co N on n r^ a w m m Cl C0 CI C1 C7 0.l C] CI CI CI 07 co Cl y ¢l E1 9 ca CI C1 C1 W W 61 d Cl m Cl q ° ',� '.� '.� '� 7 70U '.� '.7 '� U0 � ,'» 7i a X5 '.7 '� U DU '� � '7 U m ;i I II o it I 11 ' III • • IIj • • I ;; 1 11 I in x 1' s , 5 ' I a 11 C O i a 0 E I c I . o I, 1 II •o 1 X11 o G o Ca G E i III E Io v 0. — N I P 1 0 1 ¢ II 1 1, i I 11 1I 1 ti I' o I I N M G _ a c. ccn =— - p I O ` - 7 I M 0 E. U 31.1 G 112 c "E .° ° o a ° Z' "p o ^i II II A B c o I I, > . p o p = ,.E c II i.. 1f), o 0 2 T p v 411 C ' '^ •� P N o r o o >. E a E I `° c F. x iI o I I u q m L C 1 o - r,° 0 0 5 c n .., I r p ,.p y • J v c C F E _ v a c '1 p o O a o ' o E c c o d N 1 p 'W p O E d � � N p O p,-° 60 to C O I I. C p a .- o }g c I O ' C c s 8 - 5 S co, 'e c E m .E E H n n C v h o m o N ° 'W n o „ 75 1 ICI 0 vA a ..° v . i > E a.o G 4 C a o 'E .2 1-54 73 .c ❑ W `c C A c o t o a2, ,,,2, ,n x u .E d o .n n c o ._ :' E o ° - < o o f �1 CA P-I V o o v o A ` G c ° y = o n s o Cp c "> y n ` m" c o n a 3 7 E °''n c,o LI.l .p o g p 2 5 0 o o o .O y s m O ? 2 `_I S ,- = • 'S = '> - _ _ S .S ,a I I z V 5 o to o ( - 1 1' Z n wco — n v o� = rno O- o w rn rn rth v `t v v v v v v v n m za mmm22 ca mgon � qp qm , I , � I � N. 1 I, i I I • v f I" pt.ee4. 1 SPRINGBROOK SOFTWARE ' SOFTWARE MAINTENANCE AGREEMENT PARTIES: SPRINGBROOK: Springbrook Software, Inc., an Oregon corporation 720 S.W. Washington Street, Suite 330 Portland, OR 97205 Ph. (503) 973 -7750 Fax (503) 973 -7760 Email: info @springbrooksoftware.com CUSTOMER: City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 EFFECTIVE DATE: f), #.0iin- k') /5 Springbrook has licensed its proprietary software products and programs ( "Software ") to the Customer, and Customer wishes to have Springbrook maintain and support the use of the Software. Springbrook and Customer therefore agree as follows: 1. Definitions. a. "Software" has that meaning assigned to it pursuant to the Software License Agreement executed by the parties in conjunction with this Agreement (the "License Agreement "). b. "Enhancement" means any modification or addition that, when made or added to the Software, materially changes its utility, efficiency, functional capability, or application, but that does not constitute solely an Error Correction. Springbrook may designate Enhancements as minor or major, depending on its assessment of their value and of the function added to the Software. c. "Error" means any failure of the Software to conform in any material respect to its published specification (as set forth in Attachment B to the License Agreement). d. "Error Correction" means either a modification or addition that, when made or added to the Software, brings the Software into material conformity with its SOFTWARE MAINTENANCE AGREEMENT Page 1 of 6 R6972 \0001 \637272 -2 J % • • • published speci fications, or a procedure or routine that, when observed in the regular operation of the Software, avoids the practical adverse effect of such nonconformity. e. "Major Enhancement" means either the total rewrite of an application and /or additional functionality benefiting only certain entities, not all customers as a whole, and requiring these enhancements to be packaged as a separate Module. f. "Releases" means new versions of the Software, which may include Error Corrections and /or Enhancements. g. "Temporary Fix" means an initial correction or "fix" to a problem in the software prior to the release of an error correction. 2. Term; Automatic Renewal; Termination. The initial term of this Agreement shall be from the Effective Date to the end of Customer's fiscal year, subject to renewal thereafter. During this Agreement's first term, Customer shall pay for maintenance for each module licensed pro rata as determined by the number of months from installation to the end of Customer's fiscal year. Springbrook shall bill and Customer shall pay for maintenance provided under this Agreement on an annual basis, payment due as of the start of each maintenance term. This Agreement shall automatically renew after the initial term for subsequent terms of one (1) year each unless and until either party gives the other no less than thirty (30) days' written notice of termination in advance of the termination of the then - current term. This Agreement shall terminate upon Customer's failure to pay any fees due hereunder when due, or to pay any fees owing to Springbrook pursuant to any License Agreement or Service Agreement between the parties, or pursuant to any other term of this Agreement, after 30 days' prior written notice to Customer from Springbrook. 3. Scope of Maintenance. During the term of this Agreement, Springbrook agrees to provide Basic Maintenance services in support of the Software. Basic maintenance services shall consist of: a. Error Correction. Springbrook will use all reasonable diligence to correct verifiable and reproducible Errors within a reasonable time period after reported to Springbrook. The Error Correction, when completed, may be provided in the form of a "teinporary fix," consisting of sufficient programming and operating instructions to implement the Error Correction. b. Telephone /Modem Support. Springbrook shall maintain a telephone and modem support line, or DSL Internet connection, or T1 connection to the Internet during normal business hours (7AM to 5 PM Pacific Standard Time) that permits Customer to report Errors in the Software and to receive assistance in cases of operator error. Customer agrees to provide and maintain a modem, or DSL Internet connection, or Ti Internet connection, PC SOFTWARE MAINTENANCE AGREEMENT Page 2 of 6 R6972 \0001 \637272 -2 • • • Anywhere, and dedicated modem line on Customer's NT server and allow Springbrook to maintain and support Springbrook's application software via one of the above stated options with full administrative permissions to the drive where the application resides. Springbrook reserves the right to bill hourly (following Customers approval) for maintenance in cases of repeated operator error, where a single operator error results in extensive Springbrook time to resolve the problem. Customer is permitting Springbrook to perform certain maintenance functions through remote communications access. Springbrook covenants that under no circumstances will it or any of its employees attempt in any manner whatsoever to electronically repossess, disable, or otherwise tamper with any of the hardware or software which is the subject of this Agreement, or to improperly or unnecessarily access or "hack" the Customer's network or any of the data stored thereon, in connection with the use of such remote communications access. Springbrook also covenants that it will maintain all reasonable security controls over remote communications access information in order to prevent access to the Customer's system by third parties. c. Changes in State and Federal Regulations. Springbrook will provide updates needed to conform to state and federal regulations, including changes to tax tables and routine forms before changes become effective. Maintenance services under this Agreement do not include updates to conform to any changes in local governmental regulations, including without limitation changes in utility billing rates, reports or methods. d. Routine Releases. Springbrook may, from time to time, issue routine Releases of the Software, containing Error Corrections and minor Enhancements to customers who have maintenance agreements in effect. Installation of routine releases is provided at no charge to customer if completed over the modem. Installation of routine releases and updates by Springbrook at Customer's site will be billed to Customer at the then current hourly rate except in cases where Springbrook is solely responsible for the inability to provide modem support. e. Discounts on Major Enhancement Releases. Springbrook may, from time to time, offer major Enhancements to Customer, generally for an additional charge. To the extent Springbrook offers such Enhancements, it shall permit Customer to obtain one copy of each major Enhancement for each copy of the Software being maintained under this Agreement at the discount then specified by Springbrook. 4. Exceptions. The following matters are not covered by Basic Maintenance, and are outside the scope of services provided pursuant to this Agreement: a. On -site support by employees or agents of Springbrook; SOFTWARE MAINTENANCE AGREEMENT Page 3 of 6 R6972\0001\637272-2 • • b. Training users in the proper operation of the Software; c. Any problem resulting from Customer's misuse, improper use, alteration, or damage of the Software, unless approved by Springbrook in writing; d. Support of operating systems; support of non - Springbrook software, including but not limited to spreadsheets, word processors, and general office software; e. Installation, implementation, data conversion and Implementation Management Services. 5. Cooperation of Customer. Customer agrees to notify Springbrook promptly following the discovery of any Error. Further, upon discovery of an Error, Customer agrees, if requested by Springbrook, to submit to Springbrook a listing of output and any other data that Springbrook may require in order to reproduce the Error and the operating conditions under which the Error occurred or was discovered. Springbrook shall treat any such data as confidential. 6. Fees and Expenses. The initial Maintenance Fee will be as invoiced to Customer as per conditions under Section 2. Maintenance Fees are due and payable at the beginning of the initial and each renewal term hereunder. Maintenance fees will apply to all licensed products and to any modifications made to those products if those modifications require support and /or additional programming services during upgrades to new releases. Maintenance fees are based on a percentage of the then current retail value of the licensed products. Maintenance Fees do not include travel (including travel time) and living expenses for installation and training; on -site support, installation or training; file and data conversion costs; consulting services; shipping charges; Implementation Management Services or the costs of any recommended hardware. Customer agrees to pay such fees and costs, when and as the services are rendered and the expenses incurred, as approved by Customer and invoiced by Springbrook. Springbrook shall provide supporting documentation for all expenses upon customer request. Springbrook reserves the right to require prepayment or advance deposit for such additional charges or expenses in some instances. Customer is also responsible for sales or use taxes and state or local property or excise taxes associated with licensing, possession, or use of the Software or any associated services. The Maintenance percentage and/or resulting fee may change for renewals, provided that Springbrook gives Customer written notice of the change no less than thirty (30) days prior to the automatic renewal date set forth in Section 2. All fees paid hereunder are nonrefundable and will be forfeited in the event of termination or cancellation except as specifically provided in Sections 9 and 10. 7. Late Charges. If any fees or expenses are not paid within forty -five (45) days after they are due, Springbrook may, at its option, charge interest at a rate of one and one- half percent (1 1/2%) per month (eighteen percent (18 %) per annum) or, if less, the SOFTWARE MAINTENANCE AGREEMENT Page 4 of 6 R6972\0001\637272-2 • `. • • highest rate allowed by applicable law from the date such fee or charge first became delinquent. 8. Use and Restrictions. The Customer's rights and obligations concerning the use of any Error Corrections, Enhancements, or Releases (or any other programming provided by Springbrook, regardless of its form or purpose) shall be as provided in the License Agreement. Springbrook shall have sole and exclusive ownership of all right, title and interest in and to such works (including ownership of all copyrights and other intellectual property rights pertaining thereto), subject only to the license expressly granted to customer therein. 9.Confidentiality. Employees of Springbrook in the course of their duties under this Agreement may have access to financial, accounting, statistical, patron records, and other data maintained with the Customer's computer systems. Springbrook covenants that all data, documents, discussions, or other information developed or received by Springbrook or provided or exposed in the course of the performance of this Agreement are confidential and shall not be disclosed by Springbrook without written authorization by the Customer. All Customer data shall be returned to Customer upon the termination of this Agreement. Springbrook's covenant under this section shall survive the termination of this Agreement. 10. Limited Remedy and Liability; Exclusion of Consequential Damages. The cumulative liability of Springbrook to Customer for all claims relating to any services rendered hereunder, in contract, tort, or otherwise, shall not exceed the total amount of the Maintenance Fee paid to Springbrook pursuant to this Agreement. In no event shall Springbrook be liable to Customer for any consequential, indirect, special, or incidental damages (including, without limitation, damages for loss of business profits, business interruption, loss of business information, or other pecuniary loss), even if Springbrook has been advised of the possibility of such potential loss or damage. The foregoing limitation of liability and exclusion of certain damages shall apply regardless of the success or effectiveness of other remedies, and shall apply to all claims under the warranty described in Section 10. Springbrook's liability for breach of warranty exists only during the warranty period set forth in Section 10. 11. Limited Warranty and Exclusions. SPRINGBROOK WARRANTS THAT IT WILL RENDER ITS SERVICES HEREUNDER IN A GOOD AND WORKMANLIKE MANNER. DURING THE TERM OF THIS AGREEMENT AND FOR A PERIOD OF SIX (6) MONTHS THEREAFTER SPRINGBROOK, AT SPRINGBROOK'S SOLE COST, SHALL CORRECT ANY FAILURE TO RENDER ITS SERVICES HEREUNDER IN A GOOD AND WORKMANLIKE MANNER. ANY CLAIM BASED ON THE FOREGOING WARRANTY MUST BE SUBMITTED IN WRITING TO SPRINGBROOK. CUSTOMER AGREES THAT THE FOREGOING LIMITED WARRANTY IS IN LIEU OF ALL OTHER SOFTWARE MAINTENANCE AGREEMENT Page 5 of 6 R6972\0001 \637272 -2 • . • WARRANTIES OF SPRINGBROOK AND SPRINGBROOK DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS OR ADEQUACY FOR ANY PARTICULAR PURPOSE OR USE, QUALITY OR PRODUCTIVENESS, OR CAPACITY, OR THAT THE SERVICES RENDERED HEREUNDER WILL BE ERROR -FREE. NO ACTION AGAINST SPRINGBROOK FOR BREACH OF THIS LIMITED WARRANTY MAY BE COMMENCED MORE THAN 60 DAYS AFTER EXPIRATION OF THE WARRANTY PERIOD STATED IN TEIIS SECTION 10. 12.Governing Law; Venue. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Oregon as it applies to a contract made and performed in such state, regardless of the place of execution or performance. Any action brought by either party hereunder may only be brought in the Federal District Court in Oregon, or any state court in Oregon. 13. Entire Agreement; Modification. This Agreement is the complete and exclusive statement of the maintenance agreement between Springbrook and Customer and supercedes all prior and contemporaneous negotiations, discussions, proposals and understandings, oral, written or implied, including those involving any agent of either party, relating to the subject matter herein. No representations or statements made by either party or either party's agents not expressly stated herein are binding on either party. The terms of this Agreement may only be modified, expanded or added to by a written agreement executed by the parties. No oral communication between the parties or their agents before or after execution of this Agreement shall be binding upon either party unless the parties expressly agree in writing to the terms of such communication. IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in duplicate by its duly authorized officer or representative. SPRINGBROOK CUSTOMER By P. /i _� . L .1 �i�� �� . y / � , Title: 4 4 1 1 , • / e n — , a e `, Date:. off! brit 20 (�/ Date ee -. / 9 , 20 00 SOFTWARE MAINTENANCE AGREEMENT Page 6 of 6 R6972\0001\637272-2