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(the "Agreement") <br />1 1.1 By MI&I 010109 <br />IMAGEWARE SYSTEMS, INC ("IWS") <br />MCI <br />THE CITY OF SANTA ANA <br />A CHARTER CITY AND MUNICIPAL CORPORATION ORGANIZED AND <br />EXISTING UNDER THE CONSTITUTION AND THE LAWS OF THE STATE <br />OF CALIFORNIA ("CITY") <br />I TERM AND PAYMENT <br />1.1 Initial Term. The initial term of this Agreement shall be for one year and shall <br />commence on February 1, 2001 and end on January 31, 2002. <br />1.2 Renewal Terms. Subject to the receipt by IWS of payment for such services, this <br />Agreement shall be renewed annually thereafter, automatically, commencing on <br />the same month and day noted first directly above and ending on the same month <br />and day noted second directly above, for Three (3) additional one-year terms, <br />unless either party gives prior written notice of its intention not to renew this <br />Agreement. <br />1.3 Annual Fee. For the services specified herein, except for those services <br />designated as "Extra Services" pursuant to Section 2.6 hereof, CITY agrees to <br />pay an annual maintenance fee ("Maintenance Fee") as specified in Exhibit A. <br />Annual maintenance fees will be due and payable on first day of coverage. Any <br />changes to Exhibit A will be provided to CITY before the start of that year's <br />commencement date. For additional hardware and/or software purchased from <br />IWS during the term of this Agreement and added to the System (as defined <br />below),CITY agrees to pay maintenance fees for the added hardware and/or <br />software on a pro rated basis commencing on the date of the installation of such <br />added items through the end of that annual period, and then annually, thereafter, <br />for so long as this Agreement is in place. <br />2 MAINTENANCE SERVICE TO BE PROVIDED. <br />2.1 General. IWS shall provide to CITY maintenance service with respect to the <br />Crime Capture System' (the "System", being the software purchased from IWS <br />and the related hardware, whether purchased from IWS or supplied by CITY). <br />The obligation of IWS to provide such maintenance service shall not extend <br />beyond the items of software and hardware (the IWS supported items or <br />"Supported Items" as are identified in Exhibit A) that CITY has purchased <br />Page I <br />ver 02-29-01 <br />