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Agreement, these prices are subject to annual increase not to exceed CPI Index + 4% per annum. ("CPI Index" means the <br />most recently published "Consumer Price Index for All Urban Consumers" as published monthly by the U.S. Department of <br />Labor, Bureau of Labor Statistics. If the U.S. Department of Labor discontinues the publication of the CPI Index, or alters its <br />publication in some other material manner, then the parties shall adopt a substitute index or procedure that reasonably reflects <br />consumer price changes in the United States). The above cap on annual Maintenance Fee increases does not apply to any <br />Products or users licensed after the Effective Date of this Agreement. <br />D. Hardware Maintenance. Customer agrees that it will, following the applicable warranty period for the <br />Hardware, enter into a maintenance contract for the Hardware from the vendor (via S&S), unless the Customer is utilizing its <br />own Hardware. The Hardware warranty shall be effective upon the installation of the Hardware at Customer premises. <br />Customer acknowledges and agrees that maintenance and service of the System Equipment is a matter between the <br />manufacturer and Customer and that S&S its not obligated to service or maintain the System Equipment but will only act as a <br />liaison with the manufacturer to arrange for maintenance and service on and cannot be a party to or responsible for the <br />System Equipment's manufacturer's performance under the maintenance contract. Customer acknowledges and agrees that <br />S&S shall not be liable to the Customer for damages of any type resulting from the failure of the System Equipment <br />manufacturer to perform under the maintenance contract. S&S' limited Hardware maintenance support is described in <br />Exhibit 2. <br />E. Maior and Minor Releases. S&S shall provide Minor Releases to Customer as part of Support Services; <br />provided, that Customer is participating in the S&S Support Program. S&S reserves the right to provide Major Releases to <br />Customer pursuant to additional license terms, including the right to charge additional license fees. <br />F. Termination of Support Services• Transition to New Vendor NDA Required from New Vendor <br />(i) In the event that Customer elects to replace the Information System with another vendor's product, <br />S&S will work with Customer to develop S&S' role in the transition. In order to protect the proprietary interests of S&S in <br />the Application Software, Customer agrees that any replacement vendor shall have only such access to the Application <br />Software as necessary to assist in the actual conversion. In the event a replacement vendor indicates that access to the <br />Application Software is necessary to implement the actual conversion, the Customer shall deliver a notice to S&S, containing <br />an explanation for the replacement vendor's need to access the Application Software, at least fifteen (15) days prior to <br />allowing the replacement vendor access to the Application Software. S&S shall have the right, in its discretion, to have a <br />representative of S&S present at the Customer's facility at all times when any replacement vendor has access to the <br />Application Software. Customer will cooperate by providing S&S with scheduling information necessary to facilitate such <br />presence. Any replacement vendor or other outside party required to assist in transition from the Application Software to <br />another vendor shall execute a confidentiality and non-disclosure agreement in a form reasonably satisfactory to S&S, prior <br />to the time said vendor or other third party has access to the Application Software. <br />(ii) Customer shall provide written notice to S&S at least sixty (60) days in advance of the conversion. <br />Customer and S&S shall develop a plan for services that the Customer desires in connection with a transition period to its <br />new system. In the event the transition plan requires S&S to provide services in addition to its standard support services <br />under this Agreement (and provided that S&S agrees to provide such services), Customer shall pay S&S for any such <br />services in accordance with S&S' then-current hourly or other applicable rates. Customer shall be responsible to pay S&S <br />under the then current Annual Maintenance and Support Contract through the end of the calendar year in which the <br />conversion is completed; provided that, if the conversion is completed prior to June 30 of that year, S&S will prorate the fees <br />for said final year in such manner to require the Customer's payment of six months rather than twelve months. S&S shall <br />continue to support the Customer as outlined in the S&S Support Program through the transition period so long as the <br />Customer continues to pay S&S the applicable fees and is not in material breach of this Agreement. <br />5. WARRANTIES; DISCLAIMERS; INDEMNIFICATION <br />A. S&S warrants that all Application Software products delivered under this Agreement will perform in <br />material compliance with the Documentation for the period ending ninety (90) days after System Acceptance (the <br />"Warranty Period"). S&S further agrees to furnish promptly and without additional charge, all labor and parts necessary to <br />remedy any such defect that occurs during the Warranty Period; provided that S&S must receive the notice of defect during <br />the Warranty Period. Thereafter support of the Application Software will be performed under the S&S Support Program, <br />provided that Customer is validly participating in the S&S Support Program and is current with all fees due to S&S in <br />connection therewith. <br />B. S&S agrees that, to the extent permitted, it will pass through to the Customer any and all warranties that <br />S&S receives from any manufacturer or supplier of any of the System Equipment. In the event that any component of the <br />Systems & Software, Inc. <br />Confidential <br />25C-9 <br />