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HomeMy WebLinkAboutResolution - 6464 - Agreement - Teldata Inc.- Software License And Maintenance - 08_12_1999Resolution No. 6464 Aug. 12, 1999 Item No. 83 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Software License and Maintenance Agreement, by and between the City of Lubbock and Teldata, Inc., and related documents. Said Software License and Maintenance Agreement is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 12th day of _, - #Agust U � / 1999. WINDY SAJON, MAYOR APPROVED AS TO CONTENT: Sharlett Chowmng Information Technology Manage APPROVED AS TO FORM: William de Haas Competition and Contracts Manager/Attorney rkb/ccdocs/1999teldatasoftware.res August 3, 1999 Resolution No. 6464 Aug. 12, 1999 Item No. 83 SOFTWARE LICENSE & SERVICES AGREEMENT TELDATA, INC. 35 East Wacker Drive Suite 1600 Chicago, Illinois 60601 ("Licensor") and THE CITY OF LUBBOCK TEXAS 916 Texas Avenue Lubbock, Texas 79401 Telephone Number: 806n75-2373 FAX Number: 806/ ("Licensee") THIS AGREEMENT is made between LICENSOR and Licensee as of the Effective Date. The parties agree as follows: 1. Definitions. "Acceptance" refers ONLY to Customizations, and means the passage of the ten (10) day period following the expiration of the Testing Period without Licensee advising Licensor of the existence of a justifiable material non-conformance (as defined under "Testing Period" below) between the Customization and the Customization Specification. In the event that Licensee advises Licensor of a material non- conformance between the Customization and the Customization Specification, Licensor shall remedy such non-conformance and re -deliver the Customization to Licensee, at which time Licensee shall five (5) days following the expiration of the Testing Period therefor to notify Licensor if Licensor has failed to remedy the problem such that the Customization materially complies with the Customization Specification. Failure to notify Licensor within the above -specified period constitutes Acceptance. "Baseline" means the general release version of a Component System as updated to the particular time in question through both LICENSOR's warranty services and LICENSOR's Technical Currency Program, but without any other modification whatsoever. "Component System" means any one of the computer software programs which is identified in Exhibit I as a Component System, including all copies of Source Code (if provided), Object Code and all related specifications, documentation, technical information, and all corrections, modifications, additions, improvements and enhancements to and all Intellectual Property Rights for such Component System. "Confidential Information" means non-public information of a party to this Agreement. Confidential Information of LICENSOR includes the Licensed Software, all software provided with the Licensed Software, and algorithms, methods, techniques and processes revealed by the Source Code of the Licensed Software and any software provided with the Licensed Software. Confidential Information does not include information that: (i) is or becomes known to the public without fault or breach of the Recipient; (ii) the Discloser regularly discloses to third parties without restriction on disclosure; or (iii) the Recipient obtains from a third party without restriction on disclosure and without breach of a non -disclosure obligation. "Customer" means a person or entity located in the Territory who/which is receiving a Service from Licensee for which Licensee generates a bill or maintains an account using the Licensed Software. "Customization" means any Licensor -developed custom changes to the Source Code and/or Object Code of the Baseline Licensed Software in compliance with a Lubbock Texas L.6.doc 07/30/99 Customization Specification therefor, and which are not made generally available to Licensor's licensees so as to become a part of the Baseline Licensed Software. For these purposes, a Customization includes both modifications and interfaces which are developed by Licensor for Licensee. "Customization SMecification" means the functional, or high level design, specification for a particular Customization that Licensor and Licensee will agree upon and from which Licensor will generate the technical specification and, thereafter, the Customization. "Delivery Address" means the Licensee shipping address set forth in Exhibit 1 as the Delivery Address. "Delivery Date" means, for each Component System, the date Licensee first receives that Component System at the Delivery Address. "Discloser" means the party providing its Confidential Information to the Recipient. "Documentation" means the then -current hard copy and/or on-line user and technical documentation relating to the use of the Baseline Licensed Software which SCT generally provides to its customers. With respect only to the version of the Baseline Licensed Software which is first delivered to Licensee hereunder, the Documentation shall be supplemented by the Teldata Response to the The City of Lubbock's Functional Checklist dated October 1998 (i.e., those functional requirements of Licensee which Teldata agreed, by appropriate designation, are included in the specified version of the Baseline Licensed Software). "Documented Defect" means: (i) a material deviation between the Baseline Component System and its Documentation; (ii) with respect to the Customization warranty provided in Section 7(b) of this Agreement, a material deviation between the Customization and the Customization Specification; and (iii) the failure of any Baseline Component System to be so-called "year 2000 compliant," (i.e., able to accurately manipulate, record, store, process and present data involving dates from 1950 through 2099 and capable of accurately processing, recording, storing, manipulating, and presenting all date -change data from start to finish, including without limitation, twentieth, twenty-first centuries and leap year calculations) provided that all third party products (including hardware, software and firmware) used in combination with any such Baseline Component System properly exchanges date data with it; and, in each such case, for which Documented Defect LICENSOR has confirmed that Licensee has given LICENSOR enough information for LICENSOR to replicate the deviation on a computer configuration which is both comparable to the Equipment and is under LICENSOR's control. "Effective Date" means the date identified on the signature page of this Agreement as the Effective Date. "Equipment" means the hardware and systems software configuration identified in Exhibit 1 as the Equipment. "Exhibit 1" means, collectively: (i) The schedule attached to this Agreement which is marked as "Exhibit 1," including all attached Software Supplements; and (ii) any schedule also marked as "Exhibit 1" (also including any attached Software Supplements) that is attached to any amendment to this Agreement. "Intellectual Property Rights" means all patents, patent rights, patent applications, copyrights, copyright registrations, trade secrets, trademarks and service marks and Confidential Information. "Licensed Software" means the Component Systems listed in Exhibit 1. "Licensee Employees" means: (i) Licensee's employees with a need to know; and (ii) third party consultants engaged by Licensee who have a need to know, who have been pre -approved by LICENSOR, and who, prior to obtaining access to the Licensed Software, have executed an LICENSOR -approved non- disclosure agreement. "Object Code" means computer programs assembled, compiled, or converted to magnetic or electronic binary form on software media, which are readable and usable by computer equipment. "Recipient" means the party receiving Confidential Information of the Discloser. "Services" means billing and related services for consumers of gas, electric, water, sewer, waste removal and all other services for which the Licensed Software can be utilized.. "Software Supplement" means, with respect to a Component System, the addendum provided as part of Exhibit 1 that contains additional terms, conditions, limitations and/or other information pertaining to that Component System. If any terms of a Software Supplement conflicts with any other terms of this Agreement, the terms of the Software Supplement will control. Lubbock Texas L.6.doc 07/30/99 "Source Code" means computer programs written in higher -level programming languages, sometimes accompanied by English language comments and other programmer documentation. "Testing Period" means the ten (10) days following Licensee's receipt of a Customization during which Licensee can verify whether such Customization conforms in all material respects with the Customization Specification therefor. "Territory" means the State of Texas as well as those states that are contiguous to the State of Texas and such additional states as may be approved by LICENSOR from time to time at Licensee's reasonable request. 2. Right to Grant License and Ownership. LICENSOR has the right to grant Licensee this license to use the Licensed Software. Except as otherwise indicated in a Software Supplement, LICENSOR owns the Licensed Software. 3. License. Subject to the terms and conditions of this Agreement, LICENSOR grants Licensee a perpetual, non-exclusive, non -transferable license to use and copy for use the Licensed Software on the Equipment within the Territory for Licensee's internal computing operation to provide Services to Customers. The computer readable media containing Source Code and Object Code for the Licensed Software may also contain Source Code and Object Code for Component Systems for which Licensee is not granted a license for use. Licensee may not make any use of any Source Code and/or Object Code for any such Component Systems for which Licensee is not expressly obtaining a license for use under this Agreement. Any rights not expressly granted in this Agreement are expressly reserved. (a) Source Code. If Exhibit I to this Agreement does not otherwise provide that Licensee has a license to use Source Code for a particular Component System, then Licensee has no rights in or to the Source Code for that Component System. Only with respect to the Component Systems for which the Source Code is so licensed, Licensee has the right to compile, modify, improve and enhance the Licensed Software. Licensee will not disclose all or any part of the Source Code for the Licensed Software to any person except Licensee Employees who, before obtaining access to the Source Code, have been informed by Licensee in writing of the non -disclosure obligations imposed on both Licensee and such Licensee Employees under this Agreement. (b) Object Code. Licensee has right to use the Licensed Software in Object Code form. Licensee also has the right to use the Licensed Software in Object Code form temporarily on another LICENSOR - supported configuration, for disaster recovery of Licensee's computer operations. (c) Documentation. Except as otherwise provided for in the applicable Software Supplement, Licensee can make a reasonable number of copies of the documentation for each Component System for its use in accordance with the terms of this Agreement. (d) Restrictions on Use of the Licensed Software. Licensee is prohibited from causing or permitting the reverse engineering, disassembly or decompilation of the Licensed Software. Licensee is prohibited from using the Licensed Software to provide service bureau data processing services or to otherwise provide data processing services to third parties. Licensee will not allow the Licensed Software to be used by, or disclose all or any part of the Licensed Software to, any person except Licensee Employees. Without limiting the foregoing, Licensee is permitted to allow use of the input and/or output sensory displays of or from the Licensed Software by third parties on a strict "need to know" basis, and such use shall not be deemed a non -permitted disclosure of the Licensed Software. Licensee will not allow the Licensed Software, in whole or in part, to be exported outside of the United States of America, in any manner or by any means, without in each instance obtaining LICENSOR's prior written consent and, if required, a validated export license from the Office of Export Administration within the U.S. Department of Commerce and such other appropriate United States governmental authorities. (e) Intellectual Property Rights Notices. Licensee is prohibited from removing or altering any of the Intellectual Property Rights notice(s) embedded in or that LICENSOR otherwise provides with the Licensed Software. Licensee must reproduce the unaltered Intellectual Property Rights notice(s) in any full or partial copies that Licensee makes of the Licensed Software. (f) Additional Billing Rights. For so long as both this Agreement and the Technical Currency Agreement (executed by the parties on or about the Effective Date) remain in full force and effect, and provided that the fees specified in this Agreement and in the Technical Currency Agreement have been remitted to Licensor, Licensor hereby grants Licensee the right to provide so- called "Consolidated Billing Services" to its Customers. For purposes of this Agreement, "Consolidated Billing Services" means the inclusion in a single bill of both the Services provided by Licensee as well as additional Lubbock Texas L.6.doc 07/30/99 Services provided to that same Customer by a third party who has authorized Licensee to bill for their Services. As described above, such Consolidated Billing Services may only be provided to Customers of Licensee located in the Territory. The aggregate number of Customers, including those Customers for whom a Consolidated Bill is generated, may not exceed the maximum Customer limitation identified in Exhibit 1, unless otherwise authorized in an amendment hereto. 4. Available Services. (a) Implementation/Support/Training Services. LICENSOR will provide Licensee with implementation/support/training services for the Licensed Software at the fees provided in Exhibit I and/or the attached Scope of Work. (b) Consulting and Modification Services. LICENSOR will also provide Licensee with consulting and modification services for the Licensed Software. Fees for consulting and modification services are provided in Exhibit I and/or the attached Scope of Work. (c) Workmanlike Skills. LICENSOR will render all services under this Agreement in a professional and workmanlike manner. LICENSOR will promptly replace any LICENSOR personnel that are rendering services on -site at a Licensee facility if Licensee reasonably considers the personnel to be unacceptable and provides LICENSOR with notice to that effect, provided that such replacement does not violate any law or governmental regulation applicable to such personnel replacement. (d) Conditions On Providing Services. In each instance in which LICENSOR is providing Licensee with services, LICENSOR and Licensee will develop a project plan and statement of work that identifies each parry's responsibilities for such services. The project plan and statement of work, the current version of each of which is attached hereto as Exhibit 2, will describe in detail the tentative schedule and the scope of services that LICENSOR will provide. Licensee will establish the overall project direction, including assigning and managing the Licensee's project personnel team. Licensee must assign a project manager who will assume responsibility for management of the project. Licensee must ensure that the Equipment is operational, accessible and supported at the times agreed to by the parties in the project plan. While LICENSOR is providing such services, Licensee must provide LICENSOR with such facilities, equipment and support as are reasonably necessary for LICENSOR to perform its obligations, including remote access to the Equipment. If the parties do not develop a project plan in any instance, LICENSOR will nonetheless provide Licensee with services on an as -directed basis. (e) "Out of Scope" Services. This Agreement specifically excludes any responsibility for providing any services other than those services described in the Statement of Work attached hereto as Exhibit 2. To the extent that additional or different services are requested or become necessary, such additional or different services will be provided subject to mutual written agreement of the parties as to the nature of the services and the fees therefor. (f) Licensee's Responsibilities. Licensee agrees to provide the necessary cooperation to Licensor to enable Licensor to provide the services described in the statement of work in accordance with the terms of the statement of work and the project plan. Any delay, obstruction, or hindrance caused by Licensee which affects Licensor's ability to perform its obligations under this Agreement requires Licensor to provide additional services beyond those services which would have otherwise been required, then Licensee shall in any such instance pay Licensor for the additional person -hours required to be provided, calculated at Licensor's then -current rates, as well as for additional reasonable travel and living expenses incurred by Licensor as a result thereof. Moreover, to the extent that: (a) a delay or other breach of this Agreement is caused by Licensee and such delay or breach causes Licensor to be unable to deliver one or more milestones; or (b) Licensee abandons or terminates the implementation project without cause, then, without waiving any other rights available hereunder or at law or in equity, Licensee shall in any such instance pay Licensor for the person -hours provided by Licensor towards the completion of each such milestone, calculated at Licensor's then -current rates, as well as for reasonable travel and living expenses incurred by Licensor prior to the termination of the project. (g) Delay Outside of Reasonable Control of Licensor. To the extent that any services are delayed as a result of variables or factors outside of Licensor's reasonable control (e.g., defects and/or deficiencies in third party products other than those sublicensed by Licensor to Licensee; or defects and/or deficiencies in material and/or services provided by anyone other than Licensor or its subcontractors), then Licensor shall be excused from timely performance of the services to the extent caused by the delay and the project plan shall be equitably adjusted accordingly. In this event, the parties shall work together in good faith to manage, coordinate, and attempt to overcome the impediments to Licensor's performance. Lubbock Texas L.6.doc o7/30/99 4 5. Delivery. Except as otherwise provided in Exhibit 1, LICENSOR will deliver all Component Systems to Licensee at the Delivery Address within thirty (30) days after the Effective Date. 6. Payment and Taxes. (a) Payment. Licensee will pay LICENSOR as provided for in Exhibit 1. Licensee will also reimburse LICENSOR for actual travel and living expenses that LICENSOR incurs in providing Licensee with services under this Agreement, with reimbursement to be on an as -incurred basis. LICENSOR will use reasonable efforts to limit travel and living expenses by using coach air fare, booked in advance when available, staying at hotels identified in advance by Licensee as offering Licensee's contractors a discounted rate, and sharing rental cars. Licensee will also reimburse LICENSOR for all charges incurred in connection with accessing Equipment. Reimbursement is subject to any statutory reimbursement limitations imposed on Licensee contractors, and Licensee will provide LICENSOR with a copy of such limitations before LICENSOR incurs expenses. Licensee will pay each LICENSOR invoice by no later than thirty (30) days after receipt. Late payments are subject to a late charge equal to the prime lending rate established from time to time by Mellon Bank, N.A., Philadelphia, Pennsylvania plus three percent (3%). (b) Taxes. Licensee is responsible for paying all taxes (except for taxes based on LICENSOR's net income or capital stock) relating to this Agreement, the Licensed Software, any services provided or payments made under this Agreement. Applicable tax amounts (if any) are NOT included in the fees set forth in this Agreement. If Licensee is exempt from the payment of any such taxes, Licensee must provide LICENSOR with a valid tax exemption certificate; otherwise, absent proof of Licensee's direct payment of such tax amounts to the applicable taxing authority, LICENSOR will invoice Licensee for and Licensee will pay to LICENSOR all such tax amounts. (c) Records on Number of Customers: LICENSOR Audit Rights. Licensee will maintain books and records in connection with the number of Customers to which Licensee is providing Services. LICENSOR may audit the relevant books and records of Licensee to ensure compliance with the terms of this Agreement. Licensee will receive written notice at least ten (10) business days prior to any such audit. Any such audit will be conducted during Licensee's regular business hours at Licensee's offices and will not interfere unreasonably with Licensee's business activities. Audits will be made no more than once in any six (6) month period, and no more than twice in any twelve (12) month period. If an audit reveals that Licensee has underpaid for the number of Customers to which Licensee has been providing Services for any audit period, then Licensee will pay LICENSOR, promptly upon demand by LICENSOR: (i) the underpaid license fees therefor, which fees will equal LICENSOR's then -current list rates; (ii) associated fees for services to be provided by LICENSOR under the Technical Currency Agreement (entered into between the parties on or about the Effective Date); (iii) any applicable late charges; and (iv) if an audit reveals that Licensee has underpaid for the number of Customers to which Licensee has been providing Services by five percent (5%) or more, LICENSOR's reasonable costs of conducting the audit. 7. Limited Warranty. Disclaimer of Warranty and Election of Remedies. (a) Limited Software Warranty by LICENSOR and Remedy For Breach. For each Component System, LICENSOR warrants to Licensee that, for period of twelve (12) months after the Delivery Date, the Baseline Component System, as used by Licensee on the Equipment for its own computing operation to provide Services to Customers, will operate without Documented Defects. For each Documented Defect, LICENSOR, as soon as reasonably practicable and at its own expense, will provide Licensee with an avoidance procedure for or a correction of the Documented Defect. If, despite its reasonable efforts, LICENSOR is unable to provide Licensee with an avoidance procedure for or a correction of a Documented Defect, then, subject to the limitations set forth in Section 16 of this Agreement, Licensee may pursue its remedy at law to recover direct damages resulting from the breach of this limited warranty. These remedies are exclusive and are in lieu of all other remedies, and LICENSOR's sole obligations for breach of this limited warranty are contained in this Section 7(a). (b) Limited Customization Warranty and Remedy for Breach. Licensor warrants the Customizations in accordance with the provisions of Section 12 of the Statement of Work. (c) Disclaimer of Warranty. The limited warranties in Sections 7(a) and 7(b) are made to Licensee exclusively and is in lieu of all other warranties. LICENSOR MAKES NO OTHER WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, WITH REGARD TO ANY SERVICES PROVIDED UNDER THIS AGREEMENT AND/OR THE LICENSED SOFTWARE, IN WHOLE OR IN PART. LICENSOR EXPLICITLY DISCLAIMS ALL WARRANTIES Lubbock Texas L.6.doc 07/30/99 OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE. LICENSOR EXPRESSLY DOES NOT WARRANT THAT THE LICENSED SOFTWARE, IN WHOLE OR IN PART, WILL BE ERROR FREE, WILL OPERATE WITHOUT INTERRUPTION OR WILL BE COMPATIBLE WITH ANY HARDWARE OR SOFTWARE OTHER THAN THE EQUIPMENT. LICENSEE WAIVES ANY CLAIM THAT THE LIMITED WARRANTIES SET FORTH IN SECTIONS 7(a) AND 7(b) OR THE REMEDIES FOR BREACH OF SUCH LIMITED WARRANTIES FAIL OF THEIR ESSENTIAL PURPOSE. (d) Abrogation of Limited Warranty. The limited warranty in Sections 7(a) and 7(b) will be null and void if. (i) anyone (including Licensee) other than LICENSOR modifies the Baseline Component System or Customization, as applicable; or (ii) Licensee does not implement changes that LICENSOR provides to correct or improve the Baseline Component System. If despite any modification of the Component System, LICENSOR can replicate the reported problem in the Baseline Component System as if the problem were a Documented Defect, then LICENSOR will nonetheless provide Licensee with an avoidance procedure for or a correction of that reported problem for use in the Baseline Component System as though the reported problem were a Documented Defect. (e) FAILURE OF ESSENTIAL PURPOSE. THE PARTIES HAVE AGREED THAT THE LIMITATIONS SPECIFIED IN SECTIONS 7 AND 16 WILL SURVIVE AND APPLY EVEN IF ANY LIMITED REMEDY SPECIFIED IN THIS AGREEMENT IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE, AND REGARDLESS OF WHETHER LICENSEE HAS ACCEPTED ANY LICENSED SOFTWARE OR SERVICE UNDER THIS AGREEMENT. 8. Confidential Information. Except as otherwise permitted under this Agreement or as required by applicable law, the Recipient will not knowingly disclose to any third party, or make any use of the Discloser's Confidential Information. The Recipient will use at least the same standard of care to maintain the confidentiality of the Discloser's Confidential Information that it uses to maintain the confidentiality of its own Confidential Information of equal importance. Except in connection with the Licensed Software and any software provided with the Licensed Software, the non -disclosure and non-use obligations of this Agreement will remain in full force with respect to each item of Confidential Information for a period of ten (10) years after Recipient's receipt of that item. However, Licensee's obligations to maintain both the Licensed Software and any software provided with the Licensed Software as confidential will survive in perpetuity. Licensor acknowledges that Licensee is subject to requests for information under the Texas Public Information Act and that Licensee may receive requests for information about this Agreement, other agreements existing between the parties (if any), software and other materials furnished by Licensor to Licensee. In the event of a request for information related to Licensor or its software or services, Licensee shall notify Licensor in writing of such request and refer such request to the City Attorney. Licensor will also consult with the Attorney General and will present its position in writing thereto. In the event that the City Attorney is notified by the Attorney General that the requested information is public in his or her opinion, it shall be required to release such information subject to any order of any court of competent jurisdiction precluding such release. In every case where Licensor seeks or obtains such an order, it shall bear all costs associated therewith. In determining whether he or she believes that the applicable information is public in nature, the City Attorney shall review and consider all exceptions and exemptions to the public disclosure requirements, including any exception/exemption relating to trade secret, proprietary or confidential information. In this regard, all software (including modifications, improvements, updates, enhancements and new releases) licensed by Licensor to Licensee, as well as all related documentation and specifications, constitute proprietary information and trade secrets of Licensor. 9. Indemnity by LICENSOR. LICENSOR will defend, indemnify and hold Licensee harmless from and against any loss, cost and expense that Licensee incurs because of a claim that use of a Baseline Component System infringes any United States copyright of others. LICENSOR's obligations under this indemnification are expressly conditioned on the following: (i) Licensee must promptly notify LICENSOR of any such claim; (ii) Licensee must in writing grant LICENSOR sole control of the defense of any such claim and of all negotiations for its settlement or compromise (if Licensee chooses to represent its own interests in any such action, Licensee may do so at its own expense, but such representation must not prejudice LICENSOR's right to control the defense of the claim and negotiate its settlement or compromise); (iii) Licensee must cooperate with LICENSOR to facilitate the settlement or defense of the claim; (iv) the claim must not arise from modifications or (with the express exception of the other Component Systems and Lubbock Texas L.6.doc 07/30/99 third party hardware and software specified by LICENSOR in writing as necessary for use with the Licensed Software) from the use or combination of products provided by LICENSOR with items provided by Licensee or others. If any Component System is, or in LICENSOR's opinion is likely to become, the subject of a United States copyright infringement claim, then LICENSOR, at its sole option and expense, will either: (A) obtain for Licensee the right to continue using the Component System under the terms of this Agreement; (B) replace the Component System with products that are substantially equivalent in function, or modify the Component System so that it becomes non - infringing and substantially equivalent in function; or (C) refund to Licensee the portion of the license fee paid to LICENSOR for the Component System(s) giving rise to the infringement claim, less a charge for use by Licensee based on straight line depreciation assuming a useful life of five (5) years. THE FOREGOING IS LICENSOR'S EXCLUSIVE OBLIGATION WITH RESPECT TO INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS. 10. Term and Termination. (a) Right of Termination. A party has the right to terminate this Agreement if the other party breaches a material provision of this Agreement. Either party has the right to terminate this Agreement at any time while an event or condition giving rise to the right of termination exists. To terminate this Agreement, the party seeking termination must give the other party notice that describes the event or condition of termination in reasonable detail. From the date of its receipt of that notice, the other party will have thirty (30) days to cure the breach to the reasonable satisfaction of the party desiring termination. If the event or condition giving rise to the right of termination is not cured within that period, this Agreement will automatically be deemed terminated at the end of that period. However, notice to LICENSOR of a suspected Documented Defect will not constitute a notice of termination of this Agreement. (b) Effect of Termination. Upon termination of this Agreement by either party, Licensee will promptly return to LICENSOR or (at LICENSOR's request) will destroy all copies of the Licensed Software, and will certify to LICENSOR in writing, over the signature of a duly authorized representative of Licensee, that it has done so. (c) Survival of Obligations. All obligations relating to non-use and non -disclosure of Confidential Information and indemnity will survive termination of this Agreement. (d) Termination Without Prejudice to Other Rights and Remedies. Termination of this Agreement will be without prejudice to the terminating party's other rights and remedies pursuant to this Agreement. 11. Notices. All notices and other communications required or permitted under this Agreement must be in writing and will be deemed given when: Delivered personally; sent by United States registered or certified mail, return receipt requested; transmitted by facsimile confirmed by United States first class mail; or sent by overnight courier. Notices must be sent to a party at its address shown on the first page of this Agreement, or to such other place as the party may subsequently designate for its receipt of notices. Licensee must promptly send copies of any notice of material breach and/or termination of the Agreement to LICENSOR's General Counsel at 4 Country View Road, Malvern, PA 19355, FAX number (610) 578-7457, or to such other place as LICENSOR may subsequently designate for its receipt of notices. 12. Force Maieure. Neither party will be liable to the other for any failure or delay in performance under this Agreement due to circumstances beyond its reasonable control, including Acts of God, acts of war, accident, labor disruption, acts, omissions and defaults of third parties and official, governmental and judicial action not the fault of the party failing or delaying in performance. 13. Assignment. (a) Upon execution of this Agreement and the Software Maintenance Agreement (the "Agreements") by Licensee, Teldata, Inc. ("Teldata") and SCT Utility Systems, Inc. ("SCT­),, all rights and obligations of Teldata under the Agreements shall be assigned automatically (i.e., without any further action of any party) to SCT. As a result of this assignment, Teldata shall have no rights under the Agreements (including the right to collect any fees or charges due from Licensee), nor shall Teldata have any obligation under any provision of either agreement. Conversely, SCT shall "step in the shoes" of Teldata, assuming all rights and obligations expressly described in the Agreements, and shall be the "Licensor" under each agreement. In this regard, Licensee agrees to make all payments due under the Agreements to SCT and further agrees that SCT shall have the right to enforce all terms and conditions of each agreement. (b) Except as otherwise provided in this Agreement, neither party may assign any of its rights or obligations under this Agreement, and any attempt at Lubbock Texas L.6.doc 07/30/99 7 such assignment will be void without the prior written consent of the other party. For purposes of this Agreement, "assignment" shall include use of the Licensed -Software for benefit of any third party to a merger, acquisition and/or other consolidation by, with or of Licensee, including any new or surviving entity that results from such merger, acquisition and/or other consolidation. However, the following shall not be considered "assignments" for purposes of this Agreement: LICENSOR's assignment of this Agreement or of any LICENSOR rights under this Agreement to LICENSOR's successor by merger or consolidation or to any person or entity that acquires all or substantially all of its capital stock or assets; and LICENSOR's assignment of this Agreement to any person or entity to which LICENSOR transfers any of its rights in the Licensed Software. 14. No Waiver. A party's failure to enforce its rights with respect to any single or continuing breach of this Agreement will not act as a waiver of the right of that party to later enforce any such rights or to enforce any other or any subsequent breach. 15. Choice of Law: Severability. This Agreement will be governed by and construed under the laws of the State of Texas, as applicable to agreements executed and wholly performed therein, but without regard to the choice of law provisions thereof. If any provision of this Agreement is illegal or unenforceable, it will be deemed stricken from the Agreement and the remaining provisions of the Agreement will remain in full force and effect. 16. LIMITATIONS OF LIABILITY. (a) LIMITED LIABILITY OF LICENSOR. LICENSOR'S LIABILITY IN CONNECTION WITH THE LICENSED SOFTWARE, ANY SERVICES, THIS LICENSE OR ANY OTHER MATTER RELATING TO THIS AGREEMENT WILL NOT EXCEED THE FEE THAT LICENSEE ACTUALLY PAID TO LICENSOR (OR, IF NO DISCRETE FEE IS IDENTIFIED IN EXHIBIT 1, THE FEE REASONABLY ASCRIBED BY LICENSOR) FOR THE COMPONENT SYSTEM OR SERVICES GIVING RISE TO THE LIABILITY. (b) EXCLUSION OF DAMAGES. REGARDLESS WHETHER ANY REMEDY SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE OR OTHERWISE, IN NO EVENT WILL LICENSOR BE LIABLE TO LICENSEE FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY, OR OTHERWISE, AND WHETHER OR NOT LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. (c) BASIS OF THE BARGAIN. LICENSEE ACKNOWLEDGES THAT LICENSOR HAS SET ITS FEES AND ENTERED INTO THIS AGREEMENT IN RELIANCE UPON THE LIMITATIONS OF LIABILITY AND THE DISCLAIMERS OF WARRANTIES AND DAMAGES SET FORTH IN THIS AGREEMENT, AND THAT THE SAME FORM AN ESSENTIAL BASIS OF THE BARGAIN BETWEEN THE PARTIES. 17. Non -Hiring of Employees. Absent the prior written consent of the other party in each instance, neither party or any of its related or affiliated persons or organizations, will solicit for hire, offer to hire, hire or in any way employ, engage the services of or otherwise compensate any person who, in the preceding twelve (12) month period, was employed by the other party or its related or affiliated persons or organizations, until a period beginning twelve (12) months after such person's employment with the other party terminated. 18. Subcontractors. To the extent Licensor subcontracts any portion of its obligations hereunder to a third party, Licensor shall remain primarily liable to Licensee for all work performed by such third party. 19. Entire Agreement. This Agreement contains the entire understanding of the parties with respect to its subject matter, and supersedes and extinguishes all prior oral and written communications between the parties about its subject matter. Any purchase order or similar document which may be issued by Licensee in connection with this Agreement does not modify this Agreement. No modification of this Agreement will be effective unless it is in writing, is signed by each party, and expressly provides that it amends this Agreement. Lubbock Texas L.6.doc 07/30/99 TI1E PARTIES have executed this Agreement through the signatures of their respective authorized representatives. Effective Date: August 12 , 1999 TELDATA, INC. k"V�,..� CQct,(. Printed Name: A-Q See-A&VL C.LPON4 SCT UT ITY SYSTEMS, C. Printed Name: AXI, �i✓ ,�1/�� APPROVED AS TO CONTENT: Sharlett Chow ng Information Technology Manager APPROVED AS TO FORM: William de Haas Competition and Contracts Manager 07/30/99 EXHIBIT 1 (Page 1 of 2) Licensee: The City of Lubbock Texas Delivery Address: 1625 13' Street, Lubbock, Texas 79457 )EQUIPMENT: Host(s) or client server configuration(s) and/or combinations of host(s) and client server configuration(s) within the United States of America for which LICENSOR supports the Licensed Software. Licensee acknowledges that certain Component Systems of the Licensed Software may require specific host or client configurations. In this regard, Licensee intends to implement the hardware and software configuration identified in Exhibit 3 attached hereto. Based upon Licensor's review and understanding of Exhibit 3, Licensor hereby confirms that it represents a configuration on which Licensor presently supports use of the Licensed Software. NOTICE: To use any of the Licensed Software, Licensee must also obtain, install on the Equipment and maintain LICENSOR - supported versions of certain Oracle Corporation database software products and certain software/hardware peripherals. By this notice, Licensor is advising Licensee that the implementation of the Oracle Corporation database software products and softwarelhardware peripherals listed below are necessary prerequisites for the operation of the Licensed Software. LICENSED SOFTWARE: Component System Source Code Licensed? (yes/no) Software Su 1't Fee BANNER Customer Information System (CIS) for up to 100,000 Customers Yes None Included BANNER Customer Contact System (CCS) for up to 100,000 Customers Yes None Included BANNER Electronic Work Queue (EWQ) for up to 100,000 Customers Yes None Included BANNER Target + Yes None Included BANNER Customer Web Access Yes None Included Database Software (See Database Software Detail Table Below) Yes Application Specific Full Use Included TOTAL $834,900 DATABASE SOFTWARE DETAIL TABLE PRODUCT VUSERS PLATFORM Development Deployment Total (Cdent/Server) Oracle Server • Total Concurrent Users (Including Networking Kit, Distributed Option, Advanced 64 Server Replication Option, Parallel Query Option, MultiProtocol Interchange, OCI, ODBC Driver, Web Listener, Web Agent, Objects for OLE, Bit -mapped Indexing, Enterprise Manager, and SQL*Net with Protocol Driver.) Application Server Enterprise Edition Total Concurrent Users Server 64 Developer Named Client (Including Oracle Forms, Oracle Reports, and Oracle Developers Graphics, and SQL*Net with Protocol Driver. Procedure Builder, DataBrowser, and SQL*Plus for named developers 5 only.) Programmer Named Server (Including Oracle precompiler, Oracle Objects for OLE, Developers Oracle Glue, and OCI.) 5 Tuning Pack Total Concurrent Users Server 64 Diagnostic Pack Total Concurrent Users Server 64 Change Management Pack Total Concurrent Users Server 64 * This does not apply to the SQL*Plus, Procedure Builder and DataBrowser portions of Developer which are licensed for use by developers only. 07/30/99 10 EXHIBIT 1 (Page 2 of 2) PROFESSIONAL SERVICES: LICENSOR will provide Licensee with the Professional Services identified in the attached Statement Of Work ("SOW') at the fees and on the terms set forth therein. PAYMENT: For each Component System, Licensee will pay LICENSOR the entire applicable license fee by not later than thirty (30) days after the Effective Date. Unless otherwise provided in the Statement of Work, LICENSOR will invoice Licensee for all services and applicable charges on a monthly basis at the rates set forth in the Statement of Work, as LICENSOR renders the services or Licensee incurs the charges, as applicable. Number of Software Supplements Attached: 1 WINDY "• Mayor APPROVED AS TO CONTENT: 4& a44L C", -,N� Sharlett Chowning Information Technology Manager APPROVED AS TO FORM: William de Haas Competition and Contracts Manager TELDATA, INC. Printed Name: Ktl sel Hr112. CIL 004 SCT U ITY SYSTEMS, INC. 4X!/is Printed Name: /` rid//.✓ L.J•-.�.,�iS m/30/99 11 EXHIBIT 2 Licensee: The City of Lubbock Texas Delivery Address: 1625 13'° Street, Lubbock, Texas 79457 STATEMENT OF WORK AND PROJECT PLAN 07/30/99 12 It 11 1 It . , 11 9 SCT UTILITY SYSTEMS, INC. (SCT) Statement of Work # SCTLUB01 For Professional Services For The City of Lubbock Banner CMS Implementation SCT Office Address: SCT Utility Systems, Inc Carolina Research Park 9 Science Court Columbia, SC 29203 Project July 30, 1999 The City of Lubbock Office Address: The City of Lubbock 916 Texas Avenue Lubbock, TX 79401 Statement of Confidentiality If not otherwise expressly governed by the terms of a written confidentiality agreement executed by the parties, this SOW is confidential information of each of the parties hereto and shall only be disclosed to those employ- ees who have a need to know of its contents, shall not be disclosed to third parties, and shall not be duplicated, used, or disclosed in its entirety for any purpose other than for the contemplated business arrangement without the express written consent of SCT. SCT / City of Lubbock Confidential DRAFT Table of Contents 1. INTRODUCTION...............................................................................................................».........................................1 2. ASSUMPTIONS.............................................................................................................................................................1 3. DEFINITIONS................................................................................................................................................................. 2 4. SCOPE.............................................................................................................................................................................3 4.1 INSTALL THE LUBBOCK BANNER SOLUTION................................................................................................................ 4 4.2 CONDUCT FUNCTIONAL TRAINING.......................................................................................................................... 4 4.3 CONDUCT TECHNICAL TRAINING.................................................................................................................................. 4 4.4 REQUIREMENTS AND SCOPE ANALYSIS................................................................................................................... 4 4.5 CONSTRUCTION OF MODIFICATIONS & INTERFACES.................................................................................................... 5 4.5.1 Scope of Modifications........................................................................................................................................ 5 4.5.2 Scope ofInterfaces: ..................................................... e ....................................................................................... 5 4.6 INTEGRATION (ACCEPTANCE) TESTING SUPPORT........................................................................................................ 6 4.7 DATA CONVERSION OF LEGACY DATA........................................................................................................................ 6 4.8 PRODUCTION CUTOVER "Go-LtW'SUPPORT............................................................................................................. 6 4.9 POST IMPLEMENTATION SUPPORT................................................................................................................................ 6 4.10 PRICING BY ACTIVITY................................................................................................................................................ 7 5. CHANGES TO THIS STATEMENT OF WORK....................................................................................................... 7 6. SCT RESPONSIBILITIES............................................................................................................................................ 8 7. THE CITY OF LUBBOCK'S RESPONSIBILITIES.................................................................................................. 8 8. DELIVERABLES.........................................................................................................................................................10 9. ACCEPTANCE CRITERIA........................................................................................................................................16 11. CHARGES AND PAYMENT.....................................................................................................................................17 12. WARRANTY.............................................................................................................................................................. 20 13. TERMINATION OF SERVICES............................................................................................................................... 21 14. GENERAL.................................................................................................................................................................... 21 ATTACHMENT A - SAMPLE PROJECT PLAN........................................................................................................ 23 ATTACHMENT B — SCOPE OF MODIFICATIONS................................................................................................... 24 ATTACHMENT C — SCOPE OF INTERFACES.......................................................................................................... 25 ATTACHMENT D — SAMPLE MONTHLY STATUS REPORT................................................................................ 27 ATTACHMENT E — SAMPLE "CHANGE CONTROL" DOCUMENT.................................................................... 30 SCT / City of Lubbock CONFIDENTIAL SCT / City of Lubbock CONFIDENTIAL Statement of Work For Professional Services 1. Introduction The purpose of this Statement of Work ("SOW") is to document the agreed responsibilities and deliverables that SCT Utility Systems, Inc. ("SCT") shall provide in relation to the Banner Implementation Project for The City of Lubbock ("City"). SCT will install its baseline City of Lubbock Banner Solution as defined below and known as The City of Lubbock Banner Solution and develop a number of system modifications and interfaces to this baseline prod- uct. 2. Assumptions 1. The City of Lubbock will procure all other required software to support the Banner baseline product. These applications will be installed on The City of Lubbock Electric hardware before The City of Lubbock Banner Solution installation. 2. The City of Lubbock will be expected to provide a core team of subject matter experts, including the Func- tional Trainers that will be training The City of Lubbock end users full-time for the duration of this imple- mentation. A LAN Administrator, Unix administrator, Personal Computer Support Resource, Oracle Data- base Analyst, Programming Resources, and Batch Job Operations resource will be required for the project. These resources will be required on a full time basis for varying periods during the project. The Program- ming resources will be required to assist with the data conversion and the interface development. 3. The project plan set forth in Attachment A is a preliminary document which will be used as the basis for developing the Detailed Project Plan described in Section 8 hereof. The preliminary plan contains esti- mated resources and tasks to be completed based upon an implementation for utility of the City s size. This preliminary plan is subject to change and should not be considered static nor should it be considered an offer to perform services. Once the Detailed Project Plan is developed, it shall be the "Project Plan" for the project scope that is de- fined in this SOW (the "Project Scope"). Any changes in the Project Scope will be handled through the standard project change control process. A schedule for "Code Drops" will be prepared after the comple- tion of all functional specifications. The hours used in deriving the preliminary plan were based upon implementation best practices prior to 7/28/99. 4. This SOW does not account for migration to the most current base release available at final system imple- mentation. 5. Half time SCT project management is bid for a 14 month implementation. If additional project manage- ment time is required to support change control and other client based issues, it can be contracted using the standard project change control process at additional cost. 6. SCT will utilize a Core Team training approach for this project. The goal is to train The City of Lubbock core team on The City of Lubbock Banner Solution and allow them to define the rules and validation tables and to train the utility's end users. 7. Training will be conducted with an optimal class size of no more than ten (10) attendees and with a moder- ate level of interaction. SCT / City of Lubbock CONFIDENTIAL 8. Training agendas will be used based upon Banner CIS Version 2.2.2. Variance in this will result in addi- tional training hours and are considered beyond the scope of this implementation. 9. The City of Lubbock is responsible for having its technical resources trained on the Oracle Database Prod- ucts. This training should take place before the data conversion begins. 10. The City of Lubbock will use current software systems to support Year 2000 functionality, this SOW is not intended to remediate The City of Lubbock's current Year 2000 issues, if any exist. 3. Definitions All capitalized terms used and not defined herein shall have the same meanings given them in the SCT License Agreement. "Modifications" — are those changes made to The City of Lubbock Banner Solution system source code to implement the functionality defined in Section 4.5.1 of this SOW. Also referred to as "System Modifications" or "modifications". "Interfaces" are those changes made to The City of Lubbock Banner Solution system source code to imple- ment the functionality (linkages to external software systems) defined in Section 4.5.2 of this SOW. Also re- ferred to as "System Interfaces" or "interfaces". "Customizations" are those Modifications and/or Interfaces made to The City of Lubbock Banner Solution. Also referred to as "Customization". "Cutover" the period of time beginning with final conversion, working towards production processing, including successful completion of Integration (Acceptance) Testing (in accordance with the definition below) and ending with the Go -live Declaration deliverable. "Data Cleansing" — this customer task is the process of correcting all invalid data items in the legacy data- base. "Data Conversion" The process of transporting data from the legacy system into the relational database of The City of Lubbock Banner Solution so as to create from such data complete, valid, and accurate records in the new database. "Date of Certification" The date on which the City of Lubbock Banner Solution is certified by SCT as opera- tional for Functional Training. "Change Request" is defined as any request for a change to this SOW as specified in Section 5 of this SOW. "Code Drop" — is the term used to label a logical deliverable grouping of one or more Modifications and/or In- terfaces. "Deliverable" shall mean the documents and /or materials identified in Section 8 of this SOW. "The City of Lubbock Banner Solution" — this term describes the complete baseline application suite li- censed to The City of Lubbock under the License Agreement (i.e. it excludes the Modifications and Interfaces), and includes baseline Version 2.2.2 of Customer Information System (CIS), Customer Contact System (CCS), Electronic Work Queue (EWQ), Target +and WEB Access. Installation Verification Test (IVT) — A test of key functionality performed as set forth in Section 8, Deliverable 13, and as described below, to verify that a new code drop will not create an abnormal job ending that could impact testing. This functional test will be conducted by SCT and comprised of the following: accessing the delivered forms to verify that there is not an abnormal job ending for that module. execution of the delivered process to verify that there is not an abnormal job ending for that module. 2 SCT / City of Lubbock CONFIDENTIAL "Integration (Acceptance) Testing"means testing to be conducted by The City of Lubbock as described in Section 4.6 hereof in accordance with Test Plans/Cases to be developed by The City of Lubbock to verify that the Modifications and Interfaces, when executed in association with the execution of The City of Lubbock Ban- ner Solution, will operate in substantial conformity with the functional specifications. "License Agreement" means that certain Software License and Services Agreement between the parties hereto dated July , 1999. "Severity 1 Error" An application is unusable or inoperable. The application has demonstrated a complete failure causing total loss of function or program or destruction or loss of data creating a critical impact on the business and/or end users. No workaround exists and testing or Production processing cannot continue until the correction is in place. "Severity 2 Error" A function or application is materially restricted. The application demonstrates a failure preventing the normal use of certain material function(s) within a module (for example, a SCT Banner Form or batch program, known as a process). A workaround is available for a limited duration and must be negotiated and agreed to by those areas performing or affected by the interim process; provided, however, that the parties shall negotiate in good faith with respect to the aforementioned workaround and the required con- sent/agreement shall not be unreasonably withheld or delayed where such workaround is a reasonable and practical one. Testing or Production processing can continue but will be limited until the correction is in place. Examples include: 1) requests to view selected data result in data presented incorrectly, 2) certain combina- tions of data causing abnormal job endings when adding data to a database, and 3) certain types of processing cannot be done. "Severity 3 Error" There is a limitation or defect in a function or application that is not a Severity 1 Error or a Severity 2 Error. A practical workaround reasonably acceptable to The City of Lubbock is available for an in- definite period of time. "Work Effort" means the implementation by the team of The City of Lubbock and SCT as specified in this SOW. 4. Scope Based on the requirements of The City of Lubbock, the scope of work effort has been divided into the major activities (See Sections 4.1 — 4.9 for descriptions). Section 4.10 summarizes the pricing by activity. SCT has agreed that the aggregate fee for the Implementation Services is $1,923,068 and is based on certain assumptions to which the parties have agreed, such assumptions which include, without limitation the following: • The scope of this SOW (See Sections 4.5.1 and 4.5.2) was determined by the Modifications and Inter- faces identified during the sales process and subsequent deliberations/refinements. This scope ad- dresses only the number of Modifications and Interfaces requested by The City of Lubbock to meet their needs. • This SOW assumes that The City of Lubbock is willing to use procedural approaches to avoid modifi- cations to the base system where feasible. • The costs for the Modifications ($158,844) and Interface ($322,462) defined in Sections 4.5.1 and 4.5.2 of this SOW include hours estimates for the following activities: Functional Design, Technical Design, Modification and Interface Construction, Testing, Software Delivery, and Custom Documentation Deliv- ery. Customization scope increase in excess of this scope will impact the above, related activities and will be handled via the change control process at additional cost. • Customization scope increase will also impact the following activities: Acceptance Test, End User Training, Production Processing Cutover activities, Post implementation, and the overall duration of the project. Impacts on these activities and the overall project duration will also be handled via change control at additional cost. 3 SCT / City of Lubbock CONFIDENTIAL • For those tasks where SCT is dependent on the completion of City tasks, the City and SCT Project Managers will assess the impact of any delay in the completion of City tasks caused primarily by the City and will determine whether change control will be processed. The City of Lubbock acknowledges that SCT has materially relied on certain City representations regarding the nature and extent of the work effort in determining the Services to be provided by SCT and the amounts to be paid by The City of Lubbock under this Agreement. Further, City acknowledges and agrees that, any variation of the assumptions, including without limitation the substitution of any of the assumed system components, may impact SCT's ability to provide the Services for the aforesaid fixed price amount. 4.1 Install The City of Lubbock Banner Solution SCT will install the City of Lubbock Banner Solution (Release 2.2.2) as the base to which the Modifications and Interfaces are applied. This initial installation will be done by SCT personnel on The City of Lubbock's system, including documentation, with The City of Lubbock staff assistance. The baseline installation is then certified by SCT as operational for Functional Training. SCT will provide installation instructions and disks for set up of the City of Lubbock Banner Solution (baseline system) on the other client machines required by appropriate personnel within The City of Lubbock. In addition SCT will set-up the first client machine in order to demon- strate the correct procedures to The City of Lubbock staff. The City of Lubbock is responsible for subsequent setup of all other client machines and for subsequent installations of future releases. 4.2 Conduct Functional Training SCT will conduct sessions with The City of Lubbock core team members using the SCT's current training Methodology. The training sessions are designed to train the core team on the baseline Banner system and to assist the core team in defining rules and validation data on Banner. The total amount of functional training weeks is defined in Deliverable 7 of Section 8 of this SOW. For the purposes of functional training, a "Week" is defined as Monday Sam through Thursday at 5pm, with support to be provided after normal business hours on Monday through Wednesday on a reasonable, as -needed basis. 4.3 Conduct Technical Training SCT will conduct its 3 day technical training curriculum (plus one day of Q&A) over the period of one week on the technical aspects of the City of Lubbock Banner Solution. For the purposes of technical training, a "Week" is defined as Monday Sam through Thursday at 5pm, with support to be provided by SCT after normal business hours on a reasonable, as -needed basis. The audience will be three to five members of The City of Lubbock Information Systems staff who will be involved in the implementation from a technical and data conversion per- spective. 4.4 Requirements and Scope Analysis SCT, with The City of Lubbock core team's active participation, will conduct a Requirements Analysis followed by a Scope Assessment in order to finalize the Scope of the Modifications and Interfaces. The goal of the Re- quirements Analysis is not only to confirm the initial requirements (from RFP and Sales cycle) defined in Sec- tion 4.5.1 and 4.5.2 of this SOW, but also to document any additional requirements that arise during Functional Training and the Requirement user sessions. The Requirements Analysis will be performed concurrently with Functional Training. The goal of the Scope Assessment is to confirm the initial scope defined in Section 4.5.1 and 4.5.2 of this SOW, document (customization options with cost estimates and workarounds) any additional, potential modifi- cation or interface gaps, and ultimately identify the preferred option (with cost) for each scope item by having the client sign off on the Scope Document. The Scope Assessment will also be performed concurrently with Functional Design and conclude no later than 2 weeks following training. SCT / City of Lubbock CONFIDENTIAL Any new Modifications or Interfaces not documented in Section 4.5.1 and 4.5.2 will be handled through change control at additional cost. 4.5 Construction of Modifications & Interfaces SCT will perform functional design, technical design, programming and testing, and update user documentation for the Modifications and Interfaces identified in Sections 4.5.1 and 4.5.2 below. The City of Lubbock will be responsible for maintaining the present characteristics of its non -Banner applications (external systems) as the basis for design of the Banner Interfaces and for the conformity of those non -Banner applications to the specifi- cations for such non -Banner applications which are provided to SCT by The City of Lubbock for functional de- sign. The following is a description of the SCT construction methodology that will be followed for The City of Lubbock project: The objective of the functional design phase is to specify the solution to the mutually -agreed -to Modifications and Interfaces defined in Section 4.5.1 and 4.5.2. During this phase, all parties of the implementation team (SCT and The City of Lubbock) work to design cost-effective functional solutions to each scope item identified as "in scope" during the Requirements and Scope Analysis or via change control. A complete functional speci- fication document for each logical grouping of Scope requirements is produced. The client is required to sign off on a functional specification before technical design commences. The technical design phase emphasizes the technical issues of the Modifications and Interfaces. In this phase, the functional specification documents are analyzed as they relate to associated technical objects. From this, technical specification documents are created by SCT for the Modifications and Interfaces addressing source code changes/additions, database detailed design, and the interchange of data/information to/from The City of Lubbock external systems. The City of Lubbock will not review or sign -off on technical specifications. During the programming and testing phase, the technical specification documents are used to produce source code and make database changes that will be delivered as the modified Banner product. Unit testing is also performed by the programmer analysts. Documentation for the modified system is also produced during this phase (e.g., Additions to the User's Guide for Modifications and Interfaces). Such documentation will also include source code and programmer -level documentation developed in accordance with SCT's standard documentation practices for its baseline products (including Technical Specifications, Technical Reference Manual, and Data Base Specification) of the Modifi- cations and Interfaces necessary or appropriate to assist SCT support staff with its migration of those Modifica- tions and Interfaces to subsequent versions of the baseline Banner software. The Modifications and Interfaces are delivered in code drops, the number of which are determined during the technical design phase. The Modifications and Interfaces in each Code Drop are tested by SCT prior to deliv- ery of each code drop, both as independent elements as well as jointly with other Modifications and Interfaces delivered in earlier code drops. The purpose of this testing is to ensure that, through execution of test cases (Deliverable 12), the system Customizations are performing in accordance with their functional specification. Notwithstanding SCT's internal testing of the Modifications and Interfaces, The City of Lubbock's right to accept or reject the Code Drops shall be in accordance with the terms of Section S, Deliverable 13. 4.5.1 Scope of Modifications Attachment B contains a detailed summary of all Modifications included in the Scope of this SOW. It includes a) a statement of the Requirement(s), and b) a description of the modification approach (i.e. the option that was priced as part of this fixed price SOW and that will be implemented). 4.5.2 Scope of Interfaces: Attachment C contains a detailed summary of all Interfaces included in the Scope of this SOW. It includes a) a statement of the Requirement(s), and b) a description of the interface customization approach (i.e. the option that was priced as part of this fixed price SOW and that will be implemented). 5 SCT / City of Lubbock CONFIDENTIAL 4.6 Integration (Acceptance) Testing Support SCT will provide Six (6) consecutive weeks of support during the Integration (Acceptance) Testing period. Support to consist of but not limited to answering questions, investigating problems, assisting in test case exe- cution, and general functional/technical consulting. If the Integration testing period extends beyond the 6 week period defined above, additional consulting support will be provided on a time and materials basis using the rate schedule defined in Section 11 of this Statement of Work. During this Integration test period, SCT will be obligated to meet its obligations under Section 12 hereof at no additional charge to The City of Lubbock. 4.7 Data Conversion of Legacy Data SCT will take the lead on the data conversion with The City of Lubbock being required to take an active role in providing information regarding The City of Lubbock legacy application. The City of Lubbock will be required to: ➢ Assist with the data conversion mapping documents ➢ Assist with design of the conversion modules ➢ Provide clean data (i.e. responsible for extraction/cleansing of legacy data through Data Cleansing) as in- put into the conversion process. Correct bad legacy data as it is uncovered. ➢ Assist in the testing (i.e. trail conversions) of the conversion, ➢ Assist with the development of the balancing process from the legacy application to Banner ➢ Participate with the production data conversion ➢ Take responsibility for final validation of trial runs and final conversion runs ➢ Sign -off of each of these components The City of Lubbock will be required to provide at least one technical consultant that is knowledgeable regard- ing all aspects of its current database. This person will be a full time member of the project. The City of Lubbock will also be required to provide one knowledgeable database analyst trained on the database compo- nents of Oracle. 4.8 Production Cutover "Go -Live" Support SCT will provide on -site adequate functional and technical personnel, including the project manager for 5 working days before Cutover, during Cutover, and for 5 working days after Cutover to assist the City of Lubbock with its execution of the Cutover plan. 4.9 Post Implementation Support SCT will provide adequate on -site and/or remote functional and technical personnel to support the post cut - over activities. The time frame for this support will be two (2) months, with the resources and commitment lev- els as described in the Project Plan (a full time Business Analyst, a full time Technical Project Lead, a full time QA Analyst, and a half time Project Manager during Month 1; during Month 2 those individuals all drop to half time). Responsibilities will include: answering functional questions, investigating and fixing software bugs, re- testing code, general functional/technical consulting, etc. SCT / City of Lubbock CONFIDENTIAL 4.10 Pricing by Activity This section contains the critical SCT activities and the related pricing. Implementation/Support Services: Project Management Fixed Price $225,750 Initial Project Planning / Initiation Fixed Price $21,483 Base Installation / Certification Fixed Price $18,228 Requirements and Scope Analysis Phase Fixed Price $222,586 DBA Support for Production Instance Set -Up Fixed Price $34,720 SCT Systems Test and SCT Assistance with Client Integration Testing Fixed Price $233,058 Production Processing Cut -Over Support Fixed Price $69,006 SCT Banner Functional Training & Rule and Validation Setup Assistance Fixed Price $87,885 Technical Training Fixed Price $8,246 Data Conversion Fixed Price $325,500 Post Implementation Support Fixed Price $195,300 for SCT Banner CIS Modifications ( Fixed Price ( $158,844 for SCT Banner CIS Interfaces I Fixed Price $322,462 5. Changes to this Statement of Work Request for changes to this SOW which will change the Project Scope must be reviewed and considered as a change which will be managed as outlined in this section. The investigation and implementation of changes can result in modification to the Charges or other conditions specified in this SOW. The Change Control Procedure to be followed is: A Change Request is a formal statement of the change(s) being suggested to this SOW to document timeline, cost, and scope issues as well as any other related project issues, which may or may not be a change to the 7 SCT / City of Lubbock CONFIDENTIAL Project Scope. Either SCT or The City of Lubbock management may initiate a change by submittal of a Change Request to the other party. The cost of investigating a Change Request submitted by The City of Lubbock may be billable by SCT at the Time & Material rates listed in Section 11 for change requests outside the Project Scope upon mutual agreement of SCT and The City of Lubbock Project Managers reached in ad- vance of such investigation (See Attachment E for Change Control template with investigation sign -off). The other party has 5 business days to agree to the Change Request. If both parties agree to the change, the change will be documented, signed by both parties, and becomes an attachment to this SOW. If agreement does not occur in 5 business days, it is assumed that the Change Request has been rejected. The Change Request will be evaluated and approved for further action or rejected by the non -initiating party. Any approved Change Request must include an agreement as to any additional charges to The City of Lubbock for the implementation of the Change Request (i.e. any charges not already specified in this SOW or which are different than those in this SOW will be denoted in the Change Request). Any additional services performed by SCT as a result of a Change Request will be billed on a Time and Materials basis and will require payment to SCT as set forth in Section 12 of this SOW. In the event that a Change Request is rejected, neither The City of Lubbock nor SCT shall be obligated to per- form the changes identified therein. Both parties agree to not unreasonably withhold or delay consent. The amount of time required to evaluate Change Requests will vary depending on the scope of the request. S. SCT Responsibilities SCT will: a) Provide services, in accordance with the warranties provided herein, and furnish those deliverables for which SCT is responsible as outlined in this SOW. b) Participate in Management meetings/conference calls for review, status, and issue manage- ment/coordination. c) Provide mechanisms for SCT project personnel to communicate electronically with other project personnel. d) Provide a project manager with authority and responsibility to commit SCT resources and to negotiate SCT contract changes to support the project. The SCT project manager will also have authority and responsibil- ity to act on behalf of SCT for all matters pertaining to the management of the SCT effort required for sup- port of the project. SCT will work jointly with The City of Lubbock project manager throughout the project implementation. Specifically, the SCT project manager will: • Provide day-to-day direction to all members of the project team who are producing SCT deliverables. • Render written decisions within five (5) business days of receipt of a written request (other than a Change Request) from The City of Lubbock. • Administer Project change control in accordance with Change Control Procedures. • Review Change Requests with The City of Lubbock to determine the impact of the request. Authorize the Change Request if approved. • Provide written project status reports as described in Deliverable 1 of Section 8 of this SOW. e) Provide input and consulting on the following tasks for which The City of Lubbock is responsible: 1) Inte- gration Testing, 2) accomplishment of the tasks on the Go Live Checklist, and 3) Cutover. Resource esti- mates will be given in the Detailed Project Plan. 7. The City of Lubbock's Responsibilities The City of Lubbock will: 8 SCT / City of Lubbock CONFIDENTIAL a. Provide a Project Manager for escalating contract issues and managing The City of Lubbock resources. This will include: • Have the authority and responsibility to commit The City of Lubbock resources, to negotiate contract changes to support the project, to act on behalf of The City of Lubbock for all matters pertaining to the management of The City of Lubbock effort required for support of the project, and to work jointly with the SCT project manager throughout the project implementation. • Provide day-to-day direction to all members of The City of Lubbock project team. • Render written decisions within five (5) business days of receipt of a written request (other than a Change Request) from SCT. • Administer Project change control in accordance with Change Control Procedures. • Review Change Requests with SCT to help determine the impact of the request. Authorize the Change Request if approved. b. Participate in Management meetings/conference calls for review, status, and issue manage- ment/coordination. c. Ensure that the appropriate City of Lubbock personnel are available to review the functional specifications for systems modifications and interfaces. d. Ensure that the appropriate City of Lubbock personnel are available to review the SCT deliverables in a timely manner. e. For on -site SCT personnel, provide adequate and reasonable facilities containing dedicated work space with multiple analog phone lines. Provide training facilities including trainee access to product training in- stance. f. Provide business area expertise for rule and validation customization. g. Ensure that The City of Lubbock maintains a baseline, development, and training instance of the City of Lubbock Banner Solution. h. Subject to The City of Lubbock's reasonable control, provide remote and on -site access to the baseline, development, and training instances as required by SCT. I. In order to move the project from a development to an operational state, a delivery readiness process is performed. During this time the final end user training is conducted by The City of Lubbock core team. This is to verify that training materials and support documentation reflect the modified system. The Go -Live Checklist is also completed and verified. The City of Lubbock is responsible for the delivery readiness pro- cess, including both the End User Training and the Go -Live Checklist items. j. Lead and take responsibility for the following tasks with input and support from SCT: 1) Integration Test- ing, 2) End User Training, 3) completion of the tasks on the Go Live Checklist, and 4) Cutover. k. The City of Lubbock is responsible for the hardware environment (all hardware and system software re- quirements), the database environment, the data center environment, the desktop environment, network environment, production processing (Operation of the City of Lubbock Banner Solution, job scheduling, disaster recovery, backup/recovery, etc.), and The City of Lubbock organizational readiness (change man- agement) issues. SCT / City of Lubbock CONFIDENTIAL ■ 8. Deliverables All deliverables under this SOW will be provided in accordance with the Project Plan and will be governed by SCT's standard methodologies and practices (i.e. task objectives/activities, deliverable document template formats, coding standards, and general practices/procedures). For the purpose of this SOW, electronic media will be MS word 6.0 or 7.0 for text and MS Project95 for Project plans. The deliverables are discussed in detail in the tables that follow. 1. 2. Training Guides To provide Training Guide handouts in support of the training classes, including those conducted by The City of Lubbock's trainers. Customer is responsible for providing additional copies as needed. Description of the functions of the City of Lubbock Banner Solution tesponsii SCT Participi tiles, ` SCT Project Manager, SCT Trainer mpieic�'(#frt` This deliverable will be complete upon receipt by the City of the CD of the train - la IV ing guide handouts. (SCT agrees to complete this Deliverable not later than the Mg`��' ` ' `; date of certification of the City of Lubbock Banner Solution). The deliverable will be presented in CD and hard copy format. 10 SCT / City of Lubbock CONFIDENTIAL 1— w 1.- 1 1 -.e ,. a 3. pD el�v F bleamee Detailed Project Plan EE E ; ,E Purp i `m E To provide the detailed information in support of the timely, cost effective deliv- M WIN5 ery of the elements in the SOW A detailed task list, including schedules, and resource assignments espi SCT PartiCkpratslRolet3'„„}i z SCT Project Manager and The City of Lubbock Project Manager This deliverable will be available in MS Project Delivei (e Num '; m 4. Deliva Ie'Narn�` Detailed Data Conversion Strategy/Mapping Document(s) To provide a detailed description of the activities to be executed by the respon- sible participant for populating Banner with The City of Lubbock's legacy data, including a map of the The City of Lubbock legacy system data structure to the Banner database 00 oMen ; A narrative document (Conversion Technical Specification) describing the ap- proach to be taken to convert and cleanse The City of Lubbock's legacy data and migrate it to the new the City of Lubbock Banner Solution together with a Conversion Ma Aping Cross Reference and the testing philosophy and checklists �(verification scripts and reports to be run) as documented in SCTs standard R . N� �RN, `.., Conversion Methodology. RU SCT SCT and The City of Lubbock Data Conversion team. This deliverable will be complete when delivered to and accepted by The City of Lubbock as conforming to the Content requirement for it. This deliverable will be available in hard copy and electronic media De Numbir ; 5. ;Delivlsrli�e +Iam" Data Conversion Executable Module(s) Purpo RINI "3° E: To provide code that will populate the Banner CIS application data tables (not 4 F MZ ;r"3: ji support / rule tables). Conten Mi Source code to perform the conversion of the legacy data into the Banner CIS .E application tables. Resp riot All1 7,77. �, :y' SCT 11 SCT / City of Lubbock CONFIDENTIAL �.(' Part(pIptslRole ; , SCT and The City of Lubbock Data Conversion team +l tom rt CAter� This deliverable will be complete when delivered to and accepted by The City of Lubbock. Two equal payments will be tied to this deliverable, 1) the first when 3}�� the initial code drop of the conversion code is delivered and accepted in accor- iEE€3i553°i I€ ` dance with Section 9b of this SOW and 2) the second when SCT has demon- strated during Integration Testing or during Cutover that the code converts leg- acy data into the Banner CIS application tables. Source Code 71 ;eliv;irbl Narne,,;1;!I Installation of the City of Lubbock Banner Solution version. Purp ii i 1f ; Install the City of Lubbock Banner system, on which all modifications and inter- €" faces will be built, on The City of Lubbock production hardware. _contftWjU The City of Lubbock Banner Solution. This includes the installation instructions and diskettes for the client machines .Respar' °ability"9;,}'„ SCT Paolfe Installer, Functional Trainer, The City of Lubbock IT installer m eir This deliverable is considered to be complete when the City of Lubbock Banner i Solution has been installed and the SCT normal Installation certification process iEN €a i;,'f i has been completed. € Delhi 6le Banner application code will be placed on The City of Lubbock hardware (the ft_ server and one client machine). e 3 r r Oelt :t le Functional Training Classes Purpt+� To provide functional training for the City of Lubbock Banner Solution to appro- "_ i ,3 , tWil, , - ate personnel designated b The City of Lubbock. P P 9 Y tY ion I ff'Nj Classroom setting consisting of lecture and hands-on practice training (i.e. Ban- `iI�,f��� 3 :w)'th ner CIS (9 weeks with 1 trainer): Target + and Customer Web Access (1 week trainer): Banner EWQ & CCS 2.2.2 (1 with trainer)): For the week purposes ry Functional training, a "Week" is defined as Monday Sam through Thursday at MIRof 5pm. ., Resp I1 blllty =3: t SCT "n3 � Parti% t�ts/Ro16O Hi y SCT Trainers, The City of Lubbock Core Team e�pn�te This deliverable is considered to be complete with respect to a particular func- �P. P tional training area when the applicable number of training weeks have been 4k provided and, with respect to the JIT Banner CIS 2.2.2, the members of the € i �11; 3,�1 1 , , ' training class have demonstrated a satisfactory knowledge of the base system a IRV,, and all additional functionality, as evidenced by 80% of all members of the training class who have attended at least 85% of the training classes achieving a passing score on the applicable certification exams developed by SCT. In the event that such competency is not attained, The City of Lubbock can schedule 12 SCT / City of Lubbock CONFIDENTIAL additional training through the change control process on a time and materials =_ f basis using the rate schedule in Section 11 of this SOW. Miuelj' lble Pare ' , Documentation in hardcopy format 8. Technical Training Class To provide technical training for the City of Lubbock Banner Solution to appro- priate the City of Lubbock IT personnel. One Week (includes 3 day curriculum with 1 trainer) of classroom setting con- sisting of topics relative to the structure and design of the system, such as naming conventions, SCT Banner database Layout, SCT Banner tables and their relationships. For the purposes of technical training, a "Week" is defined as Monday 8am through Thursday at 5pm. SCT SCT Technical Trainers, The City of Lubbock IT and data conversion staff This deliverable is considered to be complete when the one week of technical training is provided. Documentation in hardcopy format 9. Requirements Document To confirm the initial requirements (from RFP and Sales cycle) defined in Sec- tion 4.5.1 and 4.5.2 of this SOW and to document any additional requirements that arise during Functional Training and the Requirement user sessions. A document defining the known business requirements of The City of Lubbock. 10. Scope Document Purp�'6'i' To confirm the initial customization scope defined in Section 4.5.1 and 4.5.2 of IE S`€: this SOW and document any additional, potential modification or interface gaps. P 't P' , Also to conclusively identify the preferred option (with cost) for each scope item 3` (i.e. gap). oht� i` A document defining how the business requirements not satisfied by the base- z � � i � ii § line Banner software will be implemented i.e. high level modification or work 13 SCT / City of Lubbock CONFIDENTIAL around description). SCT SCT Business and Technical Analysts, and The City of Lubbock Subject Matter Experts The Scope Document shall be considered complete when delivered to and ac- cepted by The City of Lubbock containing descriptions of the Modifications and Interfaces identified in Sections 4.5.1 and 4.5.2. This deliverable will be available in hard copy and electronic media �3eh� ��ble il�tiYmh��h 11. ellrel+ible Name,'„i`. Functional Specifications for each Modification. SCT SCT Business and Technical Analysts, and The City of Lubbock Subject Matter Experts Each Functional Specification shall be considered complete when delivered to and accepted by The City of Lubbock as conforming to the descriptions in Sec- tions 4.5.1 and 4.5.2, and the Scope Document This deliverable will be available in hard copy and electronic media 12. l.,Deifiib'i ble N6me' °i'' i Esl"I Test Plan and Test Case for each Modification and Interface. I Resp`oltatibiility i, ; ,;1 SCT ` '`' SCT Business Analysts, Quality Analysts and Programmer/Analysts, and The pam' '01p ntslRole Ys tY Ys w i City of Lubbock analysts om)pnsrlte Each Test Plan and scenario shall be considered complete when delivered to I,Y,3 , ,, and accepted by The City of Lubbock as conforming to the Content requirement 14 SCT 1 City of Lubbock CONFIDENTIAL ' for it. pe>C�ar"�»wq This deliverable will be available in hard copy and electronic media 13. Code Drops Plarp ..k rTo provide code for the Modifications and Interfaces that can be tested and t evaluated by The City of Lubbock to validate conformance to functional specifi- `'; Ef cations and test scenarios. �Cotst Source code to perform the function specified for the Modifications and Inter- . faces included in the code drop SCT. SCT Technical Analysts and Programmer/Analysts. (SCT will install the first drop with The City of Lubbock monitoring. The City of Lubbock will install the second drop with SCT monitoring, The City of Lubbock will perform all the re- maining installations, including the Installation Verification Test. However, The City of Lubbock shall perform such testing under the guidance of SCT.). Each Code Drop is considered to be complete when (i) initially installed in The City of Lubbock environment, (ii) SCT demonstrates that the Installation Verifi- cation Test has been executed successfully and (iii) when such Code Drop meets all criteria set forth in Section 9(b). All code in both source and associated source code documentation in electronic format. 14. Final Test Report and Signed off Test Cases Resp'.,`la;( illty . ` g SCT Party, "'. Robe ', !' Business Analyst, QA Analyst pn�te This deliverable is considered to be complete when 1) the Final testing has been R g executed, 2) no Severity 1 or Severity 2 Errors exist in or are caused by a Modi- �'t fication or Interface developed by SCT hereunder, and 3) the Final Test Report has been delivered and the test plans and cases (provided under Deliverable 12 „I above have been accepted in accordance with the terms of Deliverable 12. Lpo#i , le I This deliverable will be available in hard copy and electronic media 15 SCT / City of Lubbock CONFIDENTIAL 15. :Defivkife:Name`i:;i Custom User Documentation I 17eltveriiieType,, Documentation supporting Modification or Interface To provide Updated User Documentation reflecting Modification and Interface changes. Cont �t ;w The Banner CIS User Guide will be updated to reflect new functionality (descrip- ,`� WAJ,g tions of new functionality, updated form, report, and input parameter snapshots). f3esp�i�pibllifr �;';; SCT is responsible for the completion of this deliverable - >id iantRoie� SCT Technical Writers Com0e'#6n Crtterto l`ei, Delivery of Custom User Documentation is considered to be complete when the t° 1,11i` Custom User's Guide has been delivered to and accepted by The City of Lubbock as conforming to the Content requirement for it. k qv D IIlixl3 �e�ofrm „ This deliverable will be available in hard copy and electronic media. 16. Go -Live Declaration Letter To communicate that The City of Lubbock is into normal production. A document confirming 1) that Integration (Acceptance)Testing has been suc- a°g,El cessfully completed in accordance with its definition. 2) that the City has proc- .€ i 1,j °a essed 2 billing cycles with no more than 10 percent exceptions to those billing cycles and the remaining 90 percent will have correct bills produced, and 3) that J F no Severity 1 or Severity 2 error exists in or is caused by a Modification or In- ,� terface developed by SCT hereunder. The document will be signed -off by SCT and accepted by The City of Lubbock Project Manager in accordance with Sec- tion 9 below. es ility SCT Project Manager and The City of Lubbock Project Manager Partt plts/Ro11esgti,(;' The SCT and The City of Lubbock Project Managers Corn 8)t�h Criter G� E Delivery of the letter will occur at the completion of the Cutover period. In the 4€, event that The City of Lubbock does not go live with or utilize the City of F Lubbock Banner Solution in normal production for reasons other than SCT s a failure to perform its obligations under this SOW, then The City of Lubbock shall, Rik �,Rffi' in such event, treat this Deliverable as completed by SCT. ieh�rere P+rmaitih;? This deliverable will be available in hard copy a... w. �, �,..- 9. Acceptance Criteria (a) General. The acceptance criteria set forth in this Section 9 shall apply and govern with respect to each De- liverable identified in Section 8 above in which acceptance thereof is required by its terms. SCT will notify The City of Lubbock when each Deliverable has been completed and delivered to the City of Lubbock. The City of Lubbock shall inform SCT in writing within five (5) business days following SCT's notification and delivery to is SCT / City of Lubbock CONFIDENTIAL The City of Lubbock, if The City of Lubbock believes SCT has not satisfied the Completion Criteria set forth in Section 8 above with respect to such item. To the extent that The City of Lubbock rejects a Deliverable, it shall specify the reasons therefore to a reasonable level of detail and such reasons must be based specifically on SCT's failure to satisfy the requirements set forth in this SOW and, particularly, the descriptions set forth in Section 8 above. If SCT does not receive written notice within the 5-day period specified above, all obligations of SCT as outlined in section 8, "Deliverables" regarding the Deliverable in question (except ongoing warranty obligations) will be deemed satisfied and the Deliverable will be deemed accepted. (b)For the acceptance of Code Drops, The City of Lubbock will perform internal testing on all Code Drops in addition to the Installation Verification Test to validate that the functionality in the code drop substantially con- forms to the functional specifications as evidenced by substantial conformance to the expected results of those test plans/cases governing the independent or "stand-alone" testing of the Modifications and Interfaces. The code drop will be deemed accepted when the criterion above has been satisfied or The City of Lubbock has failed to notify SCT that the criterion has not been met (such notice to be in the form specified in Section (a) above) within five (5) business days following successful completion of the Installation Verification Test unless the deficiency is caused by the original correction. The City of Lubbock may continue to test each code drop beyond the 5 day period specified above, for purposes of identifying errors, integration testing, learning system, and developing business processes and training materials, but such additional testing shall not affect the ac- ceptance specified hereunder. (C) Following a written notification to SCT during the 5 day testing periods described above that a Deliverable fails to meet the governing acceptance criteria, then, SCT shall be obligated to remedy the identified deficiency and provide a Deliverable which meets its goveming acceptance criteria described in Sections 8 and 9 hereof. Following the re -delivery by SCT of the remedied Deliverable, then The City of Lubbock shall again be provided the aforedescribed 5 day testing period to verify the originally documented deficiencies, as applicable and the provisions of Section 9(a) and 9(b) above shall control the acceptance thereof. For any re -delivery, the proce- dures in Section 9(b) above shall apply, but SCT will not be required to remedy any deficiency other than those originally identified in conformity with Section 9(b), unless the deficiency is caused by the original correction, for the payment milestone to be satisfied. The Acceptance Criteria described in this Section 9 shall not expand, reduce or otherwise affect SCT's war- ranty obligations described in Section 12 below. 10. Contract Completion Criteria SCT will have fulfilled its obligations under this SOW on the sixtieth (60th) calendar day following the delivery of the Go -Live Declaration Letter (Deliverable 14) and when all of its obligations have been performed in accor- dance with the terms of this SOW or such performance has been waived in writing by The City of Lubbock. At this time normal maintenance support will apply in accordance with the Technical Currency Agreement. 11. Charges and Payment SCT WILL PROVIDE THE SERVICES AGREED TO IN THIS SOW ON A FIXED PRICE SCHEDULE. SCT will invoice The City of Lubbock for the following Deliverables in accordance with the following schedule at the completion or acceptance, as applicable, of the Payment milestones listed in the table that follows. If any deliverables that milestones are based on are broken into phases or split up, the SCT and The City of Lubbock Project Managers will mutually agree to a more detailed payment schedule within the Payment Milestone (i.e. Payment Milestone I, II, III, etc.) based on the deliverable breakdown. In no instance will payments be reallo- cated between the Payment Milestone categories (i.e. Payment Milestone I, II, III, etc.) or removed from the initial payments. Travel and living expenses are not included here and will be billed monthly. 17 SCT / City of Lubbock CONFIDENTIAL jetoneWok Cost If, itl I. Project Management $247,233 Payable in 14 equal monthly installments of $17,660 begin- ning on the 28th day of the Effective Date month and on the 28th day of each month thereafter. 11. Installation of the Lubbock Banner Solution (2.2.2 Re- $68,226 Payable upon satisfaction of lease) (Deliverable 6) the Completion Criteria set forth in Section 8, Deliverable 6 for indicated item. III. Delivery of Training Guides (Deliverable 2) $30,000 Payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 2 for indicated item. IV. Functional Training Classes (Deliverable 7) $187,885 A. SCT Banner CIS $127,885 Payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 7 for indicated item. B. Target+, CWA $30,000 Payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 7 for indicated item. C. EWQ & CCS $30,000 Payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 7 for indicated item. V. Technical Training (Deliverable 8) $6,727 Payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 8 for indicated item. VI. Requirements Document (Deliverable 9) $102,620 Applicable itemized amount is payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 9. VII. Scope Document (Deliverable 10) $46,311 Applicable itemized amount is payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 10. is SCT / City of Lubbock CONFIDENTIAL Vill. Functional Specifications for Modifications and Inter- $143,435 Applicable itemized amount is faces (Deliverable 11) payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 11. IX. Test Plan and Test Case for Modifications and Inter- $143,435 Applicable itemized amount is faces (Deliverable 12) payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 12. X. Code Drops (Deliverable 13) $285,356 Applicable itemized amount is payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 13. XI. Detailed Data Conversion Strategy / Mapping Docu- $162,760 Payable upon satisfaction of ment(s) (Deliverable 4) the Completion Criteria set forth in Section 8, Deliverable 4 for indicated item. XII. Data Conversion Executable Module(s) (Deliverable 5) $162,760 Payable in two equal payments of $81,375 as set forth in Sec- tion 8, Deliverable 5 for indi- cated item. XIII. Final Test Report (Deliverable 14) $43,170 Payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 14 for indicated item. XIV. Custom User Documentation (Deliverable 15) $43,170 Payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 15 for indicated item. XV. Go -Live Declaration (Deliverable 16) $50,000 Payable upon satisfaction of the Completion Criteria set forth in Section 8, Deliverable 16 for indicated item. XVI. Completion of Contractual Obligations $200,000 Payable when all Deliverables requiring acceptance in Sec- tion 8.0, "Deliverables" have been accepted in accordance with Section 9.0. [ I�£ifM� Ys E Q y 1 g P i''r If additional work is required beyond the Project Scope, Change Control Procedures will be utilized to manage the required changes and determine the additional charges and associated time frames requested for those additions/changes. 19 SCT / City of Lubbock CONFIDENTIAL This additional work will be billed on a time and material basis using the rates outlined below and will be billed monthly as incurred. SCT will not increase these rates to The City of Lubbock for twenty-four (24) months ef- fective from the effective date for this Statement of work. y� & f 3 Rate ISy yy "a Installer $175.00/h Functional Trainer $175.00/h Project Manager $275.00/h Business Analyst $225.00/h Technical Project Lead $2OO.00/h Auditor (Documents) $175.00/h QA Analyst $175.00/h Programmer Analyst $175.00/h Technical Writer $175.00/h Technical Consultant $2OO.00/h Programmer -Conversion $175.00/h Technical Trainer $175.00/h 12. Warranty For purposes of the warranty provided for the source code for the Modifications and Interfaces developed by SCT hereunder, the "Completion Criteria" means that the functionality in the source code of the Modifications and Interfaces substantially conforms to the applicable functional specifications and test plans/cases. SCT warrants that the source code developed by SCT will meet the completion criteria set forth in this State- ment of Work on the date SCT delivers the source code to The City of Lubbock. SCT further warrants that the source code will continue to meet the Completion Criteria in connection with the version of the baseline on which the applicable Modification or Interface was built for a period of 60 calendar days after the Go -Live Dec- laration Letter is delivered. The City of Lubbock's exclusive remedy against SCT for failure of the source code to continue to meet the Completion Criteria during such period will be the warranty described in this section. In a manner considered timely in the software development industry in light of the severity of the problem at issue, SCT will adjust the source code if it fails to meet the Completion Criteria during the warranty period or, to the extent that a mutually agreed plan exists during the warranty period as otherwise specified herein, SCT will adjust the source code in accordance with such plan (which may result in a code fix being provided following the warranty period). SCT may alternatively provide a reasonable and practical work around so that the City may use a Modification or Interface in accordance with its functional specifications. SCT does not warrant that the source code will operate uninterrupted or error free. If SCT is unable to so adjust the source code, the City may seek the remedies available under the Software License & Services Agreement. The City of Lubbock will follow problem determination, problem analysis and service request procedures pro- vided by SCT. The foregoing warranties do not apply if the source code does not meet the Completion Criteria due to: • Changes in The City of Lubbock's use of the source code 20 SCT / City of Lubbock CONFIDENTIAL • Modification, alterations, or attachments to the source code subsequent to its delivery by SCT or the City's failure to implement changes to the source code provided by SCT to correct the applicable defect • Changes in the source code's operating environment; or • Accidents, disaster, neglect or misuse 13. TERMINATION OF SERVICES Upon written notice, either party may terminate this SOW in the event of a material breach by the other. How- ever, the party seeking termination will provide the other party with sufficient, reasonable written prior notice of such material breach and the opportunity to cure it, as follows: 1. In the event of a failure to pay any amount due and payable under this SOW when due, at least 20 days after receipt of written notice. 2. In the event of any other material breach, at least 10 business days after receipt of written notice. If the nature of any non -monetary breach is such that it would be unreasonable to expect a cure within a 10- business day period, the breaching party shall be given an additional 10 business days to cure such breach. 3. In the event the material breach is not cured within the periods specified above after delivery of the no- tice, the non -breaching party may terminate this SOW in writing as of the date specified in such notice of the termination. Subject to the limitations of the Software License & Services Agreement, the termi- nating party shall have all rights and remedies generally afforded by law or equity. 14. GENERAL When this contract requires performance by SCT or The City of Lubbock employees or subcontractors on the other party s premises, the performing party shall carry and maintain Worker's Compensation Insurance and Automobile Liability Insurance. This insurance must cover its employees and subcontractors engaged in such performance in amounts no less than required by law in the applicable location. The relationship of SCT to The City of Lubbock shall be that of an independent contractor. Neither SCT nor any of its employees shall be held or deemed in any way to be an agent, employee or official of The City of Lubbock. SCT shall be responsible for, and hold The City of Lubbock harmless from any liability for unem- ployment taxes or contributions, payroll taxes or other federal or state employment taxes, and worker's com- pensation insurance coverage as may be required by law. 21 SCT / City of Lubbock CONFIDENTIAL THE PARTIES ACKNOWLEDGE THAT THEY HAVE READ THIS STATEMENT OF WORK, UNDERSTAND IT, AND AGREE TO BE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, THE PARTIES AGREE THAT THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES RELATING TO THE SERVICES DESCRIBED HEREIN CONSISTS OF 1) THIS STATEMENT OF WORK, 2) ITS ATTACHMENT(S), 3) ANY CHANGE AUTHORIZATION(S), AND 4) ANY AGREEMENTS REFERENCED HEREIN. THIS STATEMENT OF THE AGREEMENT SUPERSEDES ALL PROPOSALS OR OTHER PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THIS SUBJECT. Windy i on V Mayor August 12, 1999 Date S-a-99' Date Approved As To Content: By Shar ett Chowning Information Technology Manager _q I- �� % Date ' Accepted by: SCT Utility S terns By 4/ Authorized Signature Date Name (Type or Print) Teldata, Inc. By ka�- Date V2 (Q S Name (Type or Print) Date jr& jqe) . Name (Type or Print) Approved As To Form: By William de Haas Competition and Contracts Manager .?AL.59 Date 22 SCT / City of Lubbock CONFIDENTIAL Attachment A - Sample Project Plan e Project Plan for Lubbock eject Management item Implementation Project Initiation..............................._...._._--.---_...__-__.._.___..-._._ Install / Certify Basestem- BaseSystem Functional Training_____ Technical Training Requirements / Scope Mods & Interfaces Construction for Modifications Construction for Interfaces DBA Sup -port for Production Instance Set-U Data Conversion _..._._.._.._........_........_............_....-........._............... ......... -........................... .................. __...... .......... __............ -.......... System Testing (SCT) Integration Testing ( Client j Production Processing Cut -Over Client LIVE Processing Post Implementation 23 SCT / City of Lubbock CONFIDENTIAL ������U�,��� ������N������������s Attachment '-- -- -~__n~ ~.. .-'~.~~-.-.~~_-' The table below includes adetailed summary ofall Modifications included in the Scope of this SOW. It in- cludes a) a statement of the Requirement(s), and b) a description ofthe modification approach U'e'the option that was costed as part of this fixed price SOW and that will be implemented). IN M26 Modify system to allow for a different early Modify the account to hold a Bank Draft discount pay discount for bank draft customers. rate code. Modify payment application process to look at the account to see if this rate is populated and if so, utilize this account discount rather than the rate discount. M32 Modify the Meter Reading Exceptions form so Create a new table. When a meter reading excep- that when the clerk enters an action of "S" to tion is worked and the action taken generates a generate a service order, that exception is not service order, (actions S, ES, or RS) the Meter removed from the form. Reading Exceptions form will write a row to this new table, copying the information from the Meter Reading Exception table, and the service order number that was created for that exception. Create a new form that is similar to the Meter Reading Ex- ceptions form. This form's purpose is to display the relevant data that caused the service order to be generated. Modify the Service Order Close form to delete the row f rom the new table when the relevant service order is closed. Modify the Service Order Status Change form, UCASVCN to delete the row from the new table when the relevant service order is cancelled. A message will be provided waming the user that canceling the service order will delete the row from the new table. M41 Calculate the late payment amount at bill calc Modify Bill Print process. Add logic that calculates and feed to bill print program. the penalty amount on each open item based on the penalty associated with the rate and write this total to the bill print flat file. 24 SCT/City of Lubbock CONFIDENTIAL Attachment C — Scope of Interfaces The table below includes a detailed summary of all Interfaces included in the Scope of this SOW. It includes a) a statement of the Requirement(s), and b) a description of the interface customization approach (i.e. the option that was costed as part of this fixed price SOW and that will be implemented). escrlptfa�k3W% Ilk 15 UnisysDP 500 Item Processor. This is a Banner has a standard cash remittance a interface. It batch file transfer from the cash item proces- is assumed that some modification will be required sor to the City's pending cash file that occurs to this interface in order to get it to conform to the once a day. City of Lubbock's requirement. 16 SII Cashiering System. This system is a DOS Banner has cashiering functionality within its Cash system that the City runs under Windows in a Remittance feature. A custom interface is required DOS box. It has been customized to do to replace that functionality with a real-time interface screenscraping from the Cash entry screen to a third party cashiering system. on the host system. This system will be re- placed by the SII Cashier for Windows sys- tem when Banner is installed. The windows interface is currently undefined, but will func- tion similarly to the current interface, i.e., it will accept cashier payment, adjustment, etc. transactions, post them to a pending cash file, return the balance and respond to account inquiries. 18 J.D. Edwards financial system Banner has a standard interface to G/L. It is as- sumed that some modification will be required to this interface in order for it to conform to the City of Lubbock's requirement. 19 J.D. Edwards Accounts Payable system. This Moderate one way interface. would be a one-way interface, including the information from Banner for deposit refunds and credit final refunds. No information re- garding check number, check date, etc. is required back from JDE. Please use your ex- perience from other clients for this interface to JD Edwards. 26 SCT / City of Lubbock CONFIDENTIAL 110 Carolina Software "Wasteworks° for landfill Simple one way interface charges. Carolina will calculate the charges and pass through the interface, once a month, two charges per account (50 to 100 accounts). CIS must place these charges on the bill and record them in history. Lubbock may want to create a service for Landfill, and then load these charges into the rate for that service. This will be a batch file transfer from the landfill software system to the pending cash file. This will occur once a month for each hauler account. This interface has not been defined but will probably work the same as the Cash Item Processor. 112 Radix Meter Reading System. This is a batch A custom modification is required to modify the file transfer that occurs at the end of the standard interface record layout to the format re - nightly processing to produce the routes for quired by the Radix Meter Reading System. the next day and once in the afternoon to en- ter the readings from the handheld comput- ers. 26 SCT / City of Lubbock CONFIDENTIAL Attachment D - Sample Monthly Status Report Memorandum To: (Clients Name) TELEFAX From: (Project Manager's Name) CC: Date: Re: Banner Monthly Implementation Status (Client' Name), A high level status of your Banner CIS implementation follows. It provides information on accom- plishments, current activities, change requests, scheduled activities, open issues as well as concerns up through Month 199X. I have also attached a copy of the spreadsheet detailing the amounts you have been billed as well as the associated retainage. If you have any additions or corrections, please let me know. Sincerely, (Project Manager's Name) 27 SCT / City of Lubbock CONFIDENTIAL Banner Implementation Monthly Status Report — (Account Name) (Account #) As of Mmmm DD,19YY Proiect Overview: SCT's current focus on this project is to ...................... Expected Accomplishments This Month: Modifications: 1. General: 1. Actual Accomplishments This Month: Tasks Completed: 1. Issues and/or Problems Resolved: 1. Noteworthy Decisions: 1. Chanye Requests Processed this Period: 1. Variance From Proiect Plan: 1. Issues and/or Problems: Outstanding Issues and/or Problems from Last Month: 1. New Issues and/or Problems: 1. Activities Scheduled for Next Month: Modifications: 1. General: 28 SCT / City of Lubbock CONFIDENTIAL 1. Concerns: 1. Banner Implementation Weekly Status Report — (Account Name) (Account #) As of Mmunm DD,19YY Status Items This Week: Tasks In Progress: 1. is 1. Tasks Completed: 1. Issues and/or Problems Open: Issues and/or Problems Resolved: Noteworthy Decisions: 1. Variance from Proiect Plan: 2. Concerns: 29 SCT / City of Lubbock CONFIDENTIAL Attachment E — Sample "Change Control" Document For internal use only E P I C SCT Change Control Form Project Name: Date Requested: I Requester: Approval for investigation at TO rates: SCT PM: City PM: Client Reference C ❑ Custom ❑ Base Project Phase / Reference Document #: Basis for Change: ❑ Scope ❑ Scope ❑ Resource Allocation ❑ Project Definition ❑ System Environment ❑ Functional Design ❑ Subsystem Interface ❑ Technical Design ❑ Procedure/Policy ❑ Construction ❑ Resolution of Issues ❑ Testing/QA ❑ Project Assumptions ❑ ESS ❑ Regulatory Requirements Description/ Justification: ❑ Approve Signature ❑ Cancel ❑ Defer Date SCT Signature I Date 30 SCT / City of Lubbock CONFIDENTIAL SCT Signature Date Impact Analysis Analyst Assigned: Target Date: Estimated Hours. by Obiect: Impact on Budget / Charges or Credits: Impact on Delivery Dates / Agreed -Upon Payment Dates: Impact if Change Reauest is Denied: Document Change Log Document Assigned To Date Due Completion Comments Technical Spec Functional Spec Proj Definition Release Notes User Doc 31 SCT / City of Lubbock CONFIDENTIAL Resolution No. 6464 Aug. 12, 1999 Item No. 83 TECHNICAL CURRENCY AGREEMENT TELDATA, INC. 35 East Wacker Drive Suite 1600 Chicago, Illinois 60601 ("Licensor") and THE CITY OF LUBBOCK TEXAS 916 Texas Avenue Lubbock, Texas 79401 Telephone Number: 806/775-2373 FAX Number: 8061 ("Licensee") THIS AGREEMENT is made between LICENSOR and Licensee on the Commencement Date of August 12 , 1999. LICENSOR and Licensee have entered into a Software License and Services Agreement with an Effective Date of August 12, 1999(the "License Agreement") for the Licensed Software. Licensee desires that LICENSOR provide Maintenance and Enhancements for and new releases of the Baseline Licensed Software identified in Exhibit 1 on the terms and conditions contained in this Agreement. Accordingly, the parties agree as follows: 1. IncgMoration By Reference. Sections 1 (Definitions), 8 (Confidential Information), 11 through 15, inclusive Notices, Force Maieure, Assi ng ment, No Waiver and Choice of Law; Severabilitv, respectively) and 17 (Non -Hiring of Employees) of the License Agreement are incorporated into this Agreement by this reference as fully as if written out below. If any provision incorporated by reference from the License Agreement conflicts with any provision of this Agreement, the provision of this Agreement will control. 2. Additional Definitions. "Commencement Date" means the date identified above in this Agreement as the Commencement Date. "Contract Year" means, with respect to each Baseline Component System, each one (1) year period beginning and ending on the dates provided for in Exhibit 1 for such Baseline Component System. "Enhancements" means general release (as opposed to custom) changes to a Baseline Component System which increase the functionality of the Baseline Component System. "Expiration Date " means, with respect to each Baseline Component System, the date upon which the initial term of this Agreement ends for such Baseline Component System as provided for _ in Exhibit 1. "Improvements" means, collectively, Maintenance, Enhancements and New Releases provided under this Agreement. "Maintenance" means using reasonable efforts to provide Licensee with avoidance procedures for or corrections of Documented Defects. In the event that Licensee exercises one of the options described in Section 3(a)(ii), a Documented Defect for such purposes shall be defined as a material deviation between the Customization and its Customization Specification. "New Releases" means new editions of a Baseline Component System. "Partial Year" means, for each Baseline Component System, the period between the Commencement Date and the first day of the initial Contract Year for that Baseline Component System. 3. Services. (a) Types of Services. (i) Baseline Licensed Software Services. During the term of this Agreement, SCT will provide Licensee with Maintenance for, Enhancements of, and New Releases of each Baseline Component System identified in Exhibit 1; (ii) Option for Maintenance Services for Customizations. Provided that this Agreement is then in full force and effect, Licensee shall have the option to retain SCT for annual periods to provide Licensee with Maintenance for the Customizations developed for Licensee. The annual fee for such Maintenance services shall be seventeen percent (17%) of the fees charged by Licensor to Licensee to develop the Customization(s), which fee may increase on an annual basis by no more than ten percent (10%) of the fee charged with respect to the Customizations supported in the previous year. Licensee recognizes and understands that, in order to receive Maintenance for Customizations, it must retain Licensor to provide such Maintenance for all of the Customizations developed by Licensor for Licensee. Licensee recognizes that such Maintenance services do not include the provision of services to integrate any Customization into any New Release or Enhancement of the Baseline Licensed Software. Licensee can retain Licensor to provide services to so integrate Customizations on a time and materials basis at Licensor's then -current fees. In order to exercise the above option, Licensee shall notify Licensor in writing at least ninety (90) days in advance of the date on which it seeks Maintenance to commence for the Customizations; provided, however, that Licensor shall not be entitled to receive such Maintenance for Customizations unless it requests the services of Licensor in this regard by no later than three (3) months following Licensor's delivery of the final Customization developed under the project plan. By not later than thirty (30) days after SCT's receipt of the above -referenced written notice, SCT will provide Licensee with notice as to the additional fee that Licensee must pay to SCT for such Maintenance, which fee will be calculated as specified above and shall be paid in advance, consistent with the payment terms of the fees for the Improvements for the Baseline Licensed Software. Maintenance for Customizations will be provided on an annual basis, subject to renewal in accordance with the renewal terms of Section 5 of this Agreement. As an alternative, Licensee may retain Licensor to provide Maintenance for Customizations on a time and materials basis at Licensor's then -current fees. (b) Limitations. All Improvements will be part of the applicable Baseline Component System and will be subject to all of the terms and conditions of the License Agreement and this Agreement. LICENSOR's obligation to provide Licensee with Improvements for Baseline Component Systems owned by parties other than LICENSOR is limited to providing Licensee with the Improvements that the applicable third party owner provides to LICENSOR for that Baseline Component System. In this regard, to the extent that an agreement authorizing LICENSOR to resell or sublicense a third party's Baseline Component System is terminated or expires prior to the Expiration Date, or prior to the expiration of any renewal term, for that Baseline Component System, then LICENSOR's obligation to provide Improvements to Licensee for that Baseline Component System, and Licensee's obligation to pay LICENSOR for such Improvements, shall. automatically terminate simultaneously with the termination or expiration of the relevant agreement. Licensee must provide LICENSOR with such facilities, equipment and support as are reasonably necessary for LICENSOR to perform its obligations under this Agreement, including remote access to the Equipment. 4. Payment and Taxes. (a) Technical Currency Fees. For the Improvements for each Baseline Component System, Licensee will pay LICENSOR: (i) the amount provided for in Exhibit 1 as the Partial Year payment (if applicable) on the payment date provided for in Exhibit 1; and (ii) the amount provided for in Exhibit 1 as the "Payment Amount" for the first Contract Year; and (iii) for each Contract Year subsequent to the initial Contract Year, an amount invoiced by LICENSOR, which amount will not increase by more than the "Annual Escalation Not to Exceed Percentage" provided for in Exhibit 1 the fee that Licensee was obligated to pay to LICENSOR for Improvements for the applicable Baseline Component System in the immediately preceding Contract Year for that Baseline Component System. Fees for Improvements for a Baseline Component System are due on the first day of the 2 last (twelfth) month of the Contract Year for that Baseline Component System. (b) Additional Costs. Licensee will also reimburse LICENSOR for actual travel and living expenses that LICENSOR incurs in providing Licensee with Improvements under this Agreement, with reimbursement to be on an as - incurred basis. LICENSOR will use reasonable efforts to limit travel and living expenses by using coach air fare, booked in advance when available, staying at hotels identified in advance by Licensee as offering Licensee's contractors a discounted rate, and sharing rental cars. Licensee will also reimburse LICENSOR for all charges incurred in connection with accessing Equipment. Reimbursement is subject to any statutory reimbursement limitations imposed on Licensee contractors, and Licensee will provide LICENSOR with a copy of such limitations before LICENSOR incurs expenses. (c) Taxes. Licensee is responsible for paying all taxes (except for taxes based on LICENSOR's net income or capital stock) relating to this Agreement, the Improvements, any services provided or payments made under this Agreement. Applicable tax amounts (if any) are NOT included in the fees set forth in this Agreement. If Licensee is exempt from the payment of any such taxes, Licensee must provide LICENSOR with a valid tax exemption certificate; otherwise, absent proof of Licensee's direct payment of such tax amounts to the applicable taxing authority, LICENSOR will invoice Licensee for and Licensee will pay to LICENSOR all such tax amounts. (d) Late Charges. Licensee will pay each LICENSOR invoice by no later than thirty (30) days after receipt. Late payments are subject to a late charge equal to the lesser of: (i) the prime lending rate established from time to time by Mellon Bank, N.A., Philadelphia, Pennsylvania, plus three percent (3%); or (ii) the highest rate permitted by applicable law. 5. Term. As it applies to each Baseline Component System, the term of this Agreement is for the period beginning on the Commencement Date and continuing until the Expiration Date for that Baseline Component System. For each Baseline Component System, this Agreement will automatically be extended for consecutive Contract Years beyond the Expiration Date on a year-to-year basis unless either party notifies the other in writing of its intent not to extend this Agreement for any particular Baseline Component System at least twelve (12) months prior to the Expiration Date, or, for any Contract Year subsequent to the Expiration Date, at least twelve (12) months prior to the expiration of the then - current Contract Year. 6. Disclaimer of Warranties. Licensee agrees and understands that LICENSOR MAKES NO WARRANTIES WHATSOEVER, EXPRESSED OR IMPLIED, WITH REGARD TO ANY IMPROVEMENTS AND/OR ANY OTHER MATTER RELATING TO THIS AGREEMENT, AND THAT LICENSOR EXPLICITLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. FURTHER, LICENSOR EXPRESSLY DOES NOT WARRANT THAT A COMPONENT SYSTEM OR ANY IMPROVEMENTS WILL BE USABLE BY LICENSEE IF THE COMPONENT SYSTEM HAS BEEN MODIFIED BY ANYONE OTHER THAN LICENSOR, OR WILL BE ERROR FREE, WILL OPERATE WITHOUT INTERRUPTION OR WILL BE COMPATIBLE WITH ANY HARDWARE OR SOFTWARE OTHER THAN THE EQUIPMENT. 7. Termination. A party has the . right to terminate this Agreement if the other party breaches a material provision of this Agreement. Either party has the right to terminate this Agreement at any time while an event or condition giving rise to the right of termination exists. To terminate this Agreement, the party seeking termination must give the other party notice that describes the event or condition of termination in reasonable detail. From the date of its receipt of that notice, the other party will have thirty (30) days to cure the breach to the reasonable satisfaction of the party desiring termination. If the event or condition giving rise to the right of termination is not cured within that period, this Agreement will automatically be deemed terminated at the end of that period. However, notice to LICENSOR of a suspected Documented Defect will not constitute a notice of termination of this Agreement. Termination of this Agreement will be without prejudice to the terminating party's other rights and remedies pursuant to this Agreement. 8. LIMITATIONS OF LIABILITY. (a) LIMITED LIABILITY OF LICENSOR. LICENSOR'S LIABILITY IN CONNECTION WITH THE IMPROVEMENTS OR ANY OTHER MATTER RELATING TO THIS AGREEMENT WILL NOT EXCEED THE FEES THAT LICENSEE ACTUALLY PAID TO LICENSOR FOR THE IMPROVEMENTS FOR THE YEAR THAT SUCH LIABILITY ARISES. (b) EXCLUSION OF DAMAGES. REGARDLESS OF WHETHER ANY REMEDY SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE OR OTHERWISE, IN NO EVENT WILL LICENSOR BE LIABLE TO LICENSEE FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY, OR OTHERWISE, AND WHETHER OR NOT LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. (c) BASIS OF THE BARGAIN. LICENSEE ACKNOWLEDGES THAT LICENSOR HAS SET ITS FEES AND ENTERED INTO THIS AGREEMENT IN RELIANCE UPON THE LIMITATIONS OF LIABILITY AND THE DISCLAIMERS OF WARRANTIES AND DAMAGES SET FORTH IN THIS AGREEMENT, AND THAT THE SAME FORM AN ESSENTIAL BASIS OF THE BARGAIN BETWEEN THE PARTIES. 9. Entire Agreement. This Agreement contains the entire understanding of the parties with respect to its subject matter, and supersedes and extinguishes all prior oral and written communications between the parties about its subject matter. Any purchase order or similar document which may be issued by Licensee in connection with this Agreement does not modify this Agreement. No modification of this Agreement will be effective unless it is in writing, is signed by each party, and expressly provides that it amends this Agreement. dtemainder of Page Left Intentionally Blank> 4 William de Haas Competition and Contracts Manager 7 THE PARTIES have executed this Agreement through the signatures of their respective authorized representatives. CITY OF LUBBOCK A ST D TO - K, y ie Darnell City e retary APPROVED AS TO CONTENT: 'k&'Odt(� rn Sharlett Chowning Information Technology Manager APPROVED AS TO FORM: William de Haas Competition and Contracts Manager TELDATA, INC. Printed Name: ACLI s r kOL Q--vk-f-V%-. SCT U LITY SYSTEMS, INC. / Printed Name: �idti✓'�'`� 4/' *Teldata, Inc. is executing this Agreement to acknowledge and authorize the assignment of rights and obligations to SCT pursuant to Section 13 of the License Agreement, which provision has been incorporated herein by reference. EXHIBIT 1 Licensee: The City of Lubbock, Texas FIRST ANNUAL CONTRACT YEAR PAYMENT DATE: Aueust 1.2000 Annual Escalation Not To Increase By More than: 7% Of Prior Full -Year Annual Payment. Baseline Component System Contract Year Begins/Ends Expiration Date First Annual Payment Amount BANNER Customer Information Sept. 1 /Aug. 31 Aug. 31, 2003 Included System (CIS) for up to 100,000 customers BANNER Customer Contact Sept. 1 /Aug. 31 Aug. 31, 2003 Included System (CCS) for up to 100,000 customers BANNER Electronic Work Queue Sept. 1 / Aug. 31 Aug. 31, 2003 Included (EWQ) for up to 100,000 customers BANNER Target + Sept. 1 / Aug. 31 Aug. 31, 2003 Included BANNER Customer Web Access Sept. 1 / Aug. 31 Aug. 31, 2003 Included Database Software Sept. 1 / Aug. 31 Au . 31, 2003 Included TOTAL: $114,000 h!� rui: Mayor A17STED TO: ayt arnell 4rdtary City APPROVED AS TO CONTENT: harlett Chowning Information Technology Manager APPROVED AS TO FORM: TELDATA, INC. Printed Name: A2L, r—., P,�,4- c4, A-4` SCT UTI TY SYSTEMS, C. Printed Name: A(1xv,;a 4J- 6