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6.3.1 Subcontractors. Lawson shall not subcontract the Services to be provided by it under this Agreement, and <br />no subcontracting of the Services to be provided under this Agreement or any right or interest therein by Lawson <br />shall be effective, without the prior written consent by Customer of such subcontract, which consent will not be <br />unreasonably withheld. In the event of any subcontract, LAWSON shall remain primarily liable for all of its <br />obligations under this Agreement. Upon request, Lawson can obtain lien waivers from subcontractors performing <br />Services for Customer under the Agreement. For the avoidance of doubt, Lawson will not be required to obtain <br />Customer's approval if Lawson merely uses Lawson- certified personnel that are not Lawson employees to perform <br />Services. <br />The following Section shall be added to the Agreement as Section 7.1.4: <br />7.1.4 Functionality Warranty. Lawson warrants that, for a period of 24 months after the Effective Date of the <br />Agreement, the applicable Lawson- Maintained Products shall operate in accordance with their Functional and <br />Technical Requirements attached hereto as Exhibit A. This warranty applies only to those Lawson - Maintained <br />Products actually licensed by Customer and only to the release of the Products initially delivered under the <br />Product Order Form executed in conjunction with this Agreement. <br />The following Section shall be added to the Agreement as Section 10.5: <br />Except for the categories set forth in Section 10.1, no information or document that Lawson provides to <br />Customer in connection with this Agreement will be deemed Confidential Information unless it is marked as <br />"confidential" or "proprietary" and constitutes material, which under applicable law, is not of public record. In the <br />event that a request is made under the state's Open Records Law or other applicable law for any of Lawson's <br />Confidential Information, Customer will promptly provide Lawson notice of the request for information so that <br />Lawson may promptly avail itself of any opportunities to establish reasons why the information should be withheld <br />prior to disclosing such Confidential Information. <br />Section 11.1(b) of the Agreement is deleted and replaced in its entirety with the following: <br />gives Lawson authority to defend or settle the suit or claim provided that Lawson does not agree to any settlement <br />that materially prejudices Customer Group, provided that Lawson will consult with Customer regarding the <br />defense, <br />Section 11.1(d) of the Agreement is deleted and replaced in its entirety with the following: <br />does not make or allow Customer Group to make any admissions that prejudice, or might prejudice the defense, <br />except as may be elicited during lawful judicial process; and <br />Section 11.5(a) of the Agreement is deleted and replaced in its entirety with the following: <br />Lawson will pay Customer, as Customer's sole and exclusive remedy against Lawson (other than <br />indemnification by Lawson under this Section 11) an amount equal to the License fee paid under the Agreement <br />for the infringing Product and Service Deliverable and any other Product(s) and Service Deliverable(s) that <br />become substantially unusable because of the infringement less the cumulative depreciation of those Products <br />and Service Deliverables based on a ten (10) year straight line depreciation commencing one (1) year after the <br />initial date of the License for those Products and Service Deliverables; and <br />Section 12 of the Agreement is deleted and replaced in its entirety with the following: <br />12. Insurance. Lawson will carry the following amounts and types of insurance in conjunction with the work <br />performed under this contract. <br />1. Worker's Compensation......... Within limits required by the State of California <br />2. Employer's Liebility ...... $1,000,000.00 each accident <br />3. Commercial Automobile Liability 31,000,000.00 Combined Single Limit <br />4. Commercial General Liability, $1,000,000.00 per occurrence, and naming the City, its officers, <br />employees and agents as additional insured(s) and shall include, but not be limited to protection a <br />against claims arising from bodily and personal injury, including death resulting therefrom and damage <br />Santa Ana Lioense Add 08 Feb2008final.doc Page 3 of 8 <br />