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Agreement shall be amended to incorporate the Enhancement as a Covered Application subject to the <br />• Client's payment of any necessary additional support fees relating to the Enhancement; and (e) the <br />Enhancement Terms provide that, upon final acceptance of such Enhancement, the Software License <br />Agreement shall be considered amended as necessary or appropriate to grant to the Client the appropriate <br />rights to use the Enhancement, subject to payment in full of all amounts due under the Enhancement Terms. <br />2.9. Out of Scope Services. From time to time, the Client may request CompuDyne to provide <br />under this Agreement certain Out of Scope Services. CompuDyne shall be under no firm obligation to <br />perform any Out of Scope Services, but shall undertake to make a good faith effort to perform such services <br />to the extent that it is capable of doing so without substantially interfering with its other obligations under this <br />Agreement or with its obligations to its other clients. Any Out of Scope Services shall be provided, at <br />CompuDyne's option, on a fixed -quote basis with payment milestones or on a time and material basis at <br />CompuDyne's then current technical service rates plus all related travel, per diem and other expenses invoiced <br />as incur. No Out of Scope Services shall be provided under this Agreement unless: (a) this Agreement is <br />amended as necessary or appropriate to incorporate the terms relating to the Out of Scope Services; (b) <br />those terms are attached to this Agreement as a new exhibit and, except as specifically set forth therein, may <br />be subject to the terms of this Agreement; and, (c) those terms include agreed -to criteria regarding <br />completion of the work, if applicable. <br />3. Term <br />The term of this Agreement shall commence on the Effective Date and shall continue in effect until <br />terminated in accordance with its terms. <br />4. Fees and Payment <br />4.1. Annual Support Fees <br />• (a) Basic Support. The Client shall pay an annual fee for Basic Support for each of the <br />Covered Applications. The amount of such annual fee shall be set forth on Exhibit 2 attached hereto <br />and incorporated herein by this reference and shall be paid in advance on or prior to the expiration of <br />any Warranty Period applicable to such Covered Application and, thereafter, on each Payment Date <br />during the term of this Agreement. <br />(b) Support Options. The Client shall pay an annual fee for any requested Support <br />Options. The amount of such annual fee shall be set forth on the exhibit pertaining to such Additional <br />Support Option and shall be paid on or prior to the commencement of any services relating to such <br />Additional Support Option and, thereafter, on each Payment Date during the term of this Agreement <br />unless such Additional Support Option has been discontinued in accordance with Section 2.7 hereof <br />(Support Options). <br />(c) Enhancements and Out of Scope Services. Payment shall be as stated in the <br />applicable Enhancement/Out of Scope Services proposal. <br />4.2. Annual Adjustments. The fees payable pursuant to Section 4.1(a) and Section 4.1(b) <br />hereof (Annual Support Fees) may be increased on an annual basis by five percent (5 %) upon at least thirty <br />(30) days prior written notice to the Client. Such increase shall become effective on the next occurring <br />Payment Date. <br />4.3. Invoices. Invoices pursuant to Section 4.1 hereof shall be payable on or prior to each <br />Payment Date during the term of this Agreement or shall be payable within thirty (30) days of receipt unless <br />otherwise specifically provided. <br />4.4. Consequences of Late Payment. Failure to pay any amount owing hereunder when such <br />Page 4 of 15 <br />Updated 111505 Master Support Agreement <br />02005 CompuDyne — Public Safety & Justice, Inc. All rights reserved. <br />