INFOR (US) INC. (FORMERLY LAWSON SOFTWARE) 2 - 2008

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Lawson Software is willing to provide a discount lex -el for Lawson -Owned Products based on the following schedule: Year 1 — 110 1"(, O'l' List Price of Lo son -Owned ProdUCis Ye�ir 2 — 5 "o off List Price ol'LaNson- t))vned Products Year 3 Sit "o off List Price of Lamson -Owned Products 5. The City believes software should be paid for according to implementation progress achieved. Specifically, the City would like to for 50% of the license fees to be due upon delivery of the software and 50% to be due upon go -live. Lawson Response: Standard Lawson policy is to receive software paynsent based upon Net30 ter•n-ts. We are open to eNtended turrns l6r a short period of tithe to provide the City ilevibility in payment. B. Annual Maintenance 1. The City believes that annual maintenance fees charged for the application should be no more than 17% of the discounted license fees for the application. Indicate your ability to comply with this requirement. Lawson Response: Lawson Software believes its standard maintenance terms are in line with industry standards. Lawson's standard maintenance policy is of list price of Lavvson owned Products. NVe have provided a reduction in this policy to offer maintenance terms beginning at 2WO of net license fees on f -awson -Owned Products. 2. The City requires a 10 -year schedule for maintenance charges wherein annual maintenance is guaranteed to not increase more than CPI +2% over the previous year. This schedule would in no way obligate the City to continue the maintenance program if it did not wish to. Lawson Response: Lawson is willing to offer a maximum maintenance increase of 5°,,o annually for Lawson - Owned Products. 3. The City should receive access to all version upgrades, including major version upgrades and successor products for no additional charge, assuming the City has remained current on its maintenance agreement. Please verify your ability to conform to this requirement. Lawson Response: During the maintenance period, Lawson will provide to the City Maintenance for the Lawson Nlaintainance purchased, Maintainance will include the following: Maintained products. Unless otherwise stated in an applicable Order Form, and based on the type and level will provide Customer updates and new releases of the Lawson- Maintained products when generally made available by Lawson for installation and use by Customer Group under the Agreement. Netiv products require a separate Order Form and are not considered part of the Maintainace Agreement until purchased. 4. The City does not believe that maintenance fees should be charged during implementation when the software is not being utilized in live production. Please detail your ability to delay maintenance charges until the various modules are in live production. Lawson Response: Lawson Software's standard maintenance policy is that maintenance fees begin upon delivery of the licensed products. The revenue recognition rules that Lawson adheres to as a publicly traded company would require license fee revenue recognition reductions for any "free" maintenance period provided in a contract. It Lawson is selected as vendor of choice, we are open to discussing a mutually agreeable solution. Lawson Software does believe that even during implementation it is important for clients to have a valid support agreement in place to take advantage of all the various customer support options offered as part of the support agreement. Lawson Software — Confidential 58