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R-12-12-20-H1 - 12/20/2012RESOLUTION NO. R-12-12-20-111 WHEREAS, the City has a need for technical services to license certain Financials, Human Resource, and Payroll Administrative Software; and and WHEREAS, Tyler Technologies, Inc. has submitted an agreement to provide said services; WHEREAS, the City Council desires to enter into said agreement with Tyler Technologies, Inc., Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City a "Software as a Service" Agreement with Tyler Technologies, Inc., a copy of said agreement being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 20th day of December, 2012. �^ / vl ALA MCGRAW, Mayor City of Round Rock, Texas ATTEST: 9d" - Yl SARA L. WHITE, City Clerk 0: \wdox\SCCI nts\0112\ 1204\MUNICIPAL\00264249.DOC/rmc EXHIBIT "Aly CITY OF ROUND ROCK "SOFTWARE AS A SERVICE" AGREEMENT WITH TYLER TECHNOLOGIES, INC. This "Software as a Service" agreement (hereinafter referred to as the "SaaS Agreement" or the "Agreement") is made on the day of the month of , 20_ (hereinafter referred to as the "Effective Date") by and between Tyler Technologies, Inc., a Delaware corporation with offices located at 1 Cole Haan Drive, Yarmouth, Maine 04096 (hereinafter referred to as "Tyler") and the City of Round Rock, Texas, a home -rule municipality with offices located at 221 East Main Street, Round Rock, Texas 78664 (hereinafter referred to as the "Client" or the "City"). WHEREAS Client desires to license certain Financials, Human Resource, and Payroll Administrative Software (hereinafter referred to as the "System"); and WHEREAS Tyler is in the business of providing the type of software Client intends to obtain; and WHEREAS Client, by signature on this Agreement, is awarding Tyler the contract for furnishing, delivering, installing, and implementing the specified System; NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and promises set forth herein, which consideration is declared good and sufficient by both parties, Tyler and Client agree that Tyler shall provide certain products and services, and Client shall pay the prices agreed therefor, in accordance with the requirements and conditions set forth in this Agreement. This Agreement consists of the following sections and exhibits, each of which is attached hereto and incorporated by reference as though recited herein verbatim: SECTION A: Software License SECTION B: Professional Services SECTION C: Maintenance SECTION D: Third Party Products SECTION E: Software as a Service SECTION F: General Terms and Conditions EXHIBIT 1: Investment Summary EXHIBIT 2: Service Level Agreement EXHIBIT 3: Support Call Process EXHIBIT 4: Business Travel Policy Summary EXHIBIT 5: Adobe End User License Agreement EXHIBIT 6: Tyler's Written Proposal dated December 3, 2012, in response to City's Request for Information SECTION A: SOFTWARE LICENSE 1. Grant of License. a) Upon the Effective Date hereof, Tyler hereby grants to Client a non-exclusive, non -transferable, royalty -free, revocable license to use the Tyler software products set forth in the Investment Summary attached hereto as Exhibit 1, along with related interfaces (collectively hereinafter referred to as the "Tyler Software Products"), and additionally along with Tyler user guides provided in or with the Tyler Software Products (hereinafter referred to as the "User Guides"), all such software and materials to be used for Client's internal business purposes only, and all such software and materials to be subject to the terms and conditions of this Agreement. This grant of license is contingent upon Client remitting payment of fees as and when required under this Agreement. TYLER HAS THE RIGHT TO REVOKE THIS LICENSE IF CLIENT TERMINATES, CANCELS OR FAILS TO RENEW THIS SaaS AGREEMENT. TYLER HAS THE RIGHT TO REVOKE THIS LICENSE IF CLIENT FAILS TO REMIT ANY REQUIRED SaaS FEES IN ACCORDANCE WITH THIS AGREEMENT AND THE TEXAS PROMPT PAYMENT ACT AS DELINEATED HEREIN, FOLLOWING THIRTY (30) DAYS' WRITTEN NOTICE TO CLIENT OF TYLER'S INTENT TO REVOKE THE LICENSE. b) Tyler shall retain ownership of the Tyler Software Products and User Guides, including all intellectual property rights in and to same. The Tyler Software Products are not licensed to perform functions or processing for subdivisions or entities that were not disclosed to Tyler prior to the Effective Date hereof. c) Client acknowledges and agrees that the Tyler Software Products and User Guides are proprietary to Tyler and have been developed as trade secrets at Tyler's expense. Client shall use reasonable efforts to keep the Tyler Software Products and User Guides confidential and to prevent any misuse, unauthorized use or unauthorized disclosure of the Tyler Software Products or User Guides by any party under City's authority or control. d) The Tyler Software Products may not be modified by anyone other than Tyler. If an objective determination is made that Client modified the Tyler Software Products without Tyler's prior written consent, then Tyler's obligations to provide maintenance services on the Tyler Software Products shall be voided, and the warranty for the Tyler Software Products shall be voided. Client shall not perform de -compilation, disassembly, translation or other reverse engineering on the Tyler Software Products. e) Client may make copies of the Tyler Software Products for testing, disaster recovery, and archive purposes only. Client shall repeat any and all proprietary notices on any copy of the Tyler Software Products. Client may make copies of the Tyler User Guides for internal use only. f) In the event Client acquires from Tyler any edition of Tyler Content Manager software other than Enterprise Edition, the license for Content Manger is restricted to use with Tyler applications only. If Client wishes to use Tyler Content Management software with non -Tyler applications, Client must purchase or upgrade to Tyler Content Manager Enterprise Edition. 2. License Fees. Client agrees to pay Tyler, and Tyler agrees to accept from Client as payment in full for the license granted herein, the software fees set forth in the Investment Summary attached hereto as Exhibit 1. 3. Limited Warranty. For the purposes of this Agreement, a "Defect" is defined as a failure of the Tyler Software Products to substantially conform to the then -current Tyler User Guides and the functional descriptions of the Tyler Software Products in Tyler's written proposal to Client. In the event of a substantive conflict between those documents, the then -current Tyler User Guides will control. A Tyler Software Product is "Defective" if it contains a Defect. For as long as this current SaaS Agreement is in effect, Tyler warrants that the Tyler Software Products will not contain Defects. If the Tyler Software Products do not perform as warranted, Tyler will use reasonable efforts, consistent with industry standards, to cure the Defect in accordance with Tyler's then -current support call process. Tyler's current support call process is set forth herein in Exhibit 3. 4. Intellectual Propeny Infringement Indemnification. a) Tyler's Obligations. Tyler shall defend and indemnify Client against any claim by an unaffiliated third party that a Tyler Software Product, if used within the scope of this Agreement, directly infringes that party's registered United States patent, copyright or trademark issued and existing as of the Effective Date or as of the distribution date of a release to the Tyler Software Product, and Tyler will promptly pay the amount of any resulting adverse final judgment issued by a court of competent jurisdiction or of any settlement made by Tyler in writing. b) Client's Obligations. Tyler's obligations under this Section A/Subsection 4 are contingent upon Client performing all of the following in connection with any claim as described herein: Promptly notifying Tyler in writing of any such claim; ii. Giving Tyler reasonable cooperation, information, and assistance in connection with the claim; and iii. Consenting to Tyler's sole control and authority with respect to the defense, settlement or compromise of the claim. c) Exceptions to Tyler's Obligations. Tyler will have no liability hereunder if the claim of infringement or an adverse final judgment rendered by a court of competent jurisdiction results from: i. Client's use of a previous version of a Tyler Software Product, and the claim would have been avoided had Client used the most -current version of the Tyler Software Product made available to the Client; ii. Client's combining the Tyler Software Product with devices or products not provided or recommended by Tyler; iii. Client's use of a Tyler Software Product in applications, business environments or processes for which the Tyler Software Product was not designed or contemplated, and where use of the Tyler Software Product outside such application, environment or business process would not have given rise to the claim; iv. Corrections, modifications, alterations or enhancements made by Client to the Tyler Software Product, and such correction, modification, alteration or enhancement is determined by a court of competent jurisdiction to be a contributing cause of the infringement; V. Use of the Tyler Software Product by any person or entity other than Client or Client's employees; or 3 vi. Client's willful infringement, including Client's continued use of the infringing Tyler Software Product after Client becomes aware that such infringing Tyler Software Product is or is likely to become the subject of a claim hereunder. d) Remedy. In the event a Tyler Software Product is finally determined by a court of competent jurisdiction to be infringing, and its use by Client is enjoined, Tyler will at its election: (a) Procure for Client the right to continue using the infringing Tyler Software Product; (b) Modify or replace the infringing Tyler Software Product so that it becomes non -infringing; or, if Section A/Subsection 4(d)(i)(a) and Section A/Subsection 4(d)(i)(b) are not accomplished by Tyler: (c) Terminate Client's license for the infringing Tyler Software Product and refund to Client the SaaS fees paid for the infringing Tyler Software Product, as depreciated on a straight-line basis over a three (3) year period commencing on the Effective Date. ii. The foregoing states Tyler's entire liability and Client's sole and exclusive remedy with respect to the subject matter hereof. SECTION B: PROFESSIONAL SERVICES 1. Services. Tyler shall provide the services set forth in the Investment Summary at Client's election, including consulting, training, conversion, and other miscellaneous services. Tyler will be available for a kick-off meeting within forty-five (45) days of contract execution. The Project Plan for Phase I will be created within thirty (30) days following the conclusion of the kick-off meeting. Tyler and Client shall schedule status calls for the project to occur no less than once every two weeks. 2. Expenses. Tyler will invoice Client for expenses in accordance with the then -current Tyler Business Travel Policy. Copies of receipts will be promptly provided, on an exception basis, upon City's request at no charge. An administrative fee of $25.00 per week of onsite services will be charged if Client requires receipts for all non -per diem expenses. Receipts for mileage and miscellaneous items less than five dollars ($5) shall not be required to be made available. 3. Additional Services. a) Training and/or consulting services utilized in excess of those set forth in the Investment Summary, and additional related services not set forth in the Investment Summary, will be billed at Tyler's then -current rates for said services. b) Programming and/or interface quotes are estimates based upon Tyler's understanding of the specifications supplied by Client. In the event Client requires additional work performed above the specifications provided, Tyler will submit to Client an amendment containing an estimate of the charges for the additional work. Client will have thirty (30) calendar days from the date the estimate is provided to approve the amendment. No additional work shall be undertaken or performed by Tyler without the express prior written authorization of Client. 4. ERP System Acceptance. a) Conditional Acceptance Upon Tyler's notification to Client that Tyler has completed the installation of the any one or more modules comprising the ERP System (such ERP System being comprised of the Tyler Software Products licensed to Client pursuant to this Agreement), and that such Software modules are ready for testing, Client shall begin testing such Software modules in a non- production environment using mutually agreed-upon testing procedures to determine whether each Software module meets, in all material respects, the applicable requirements and warranties set forth in the Agreement, in the Project Plan and in such other criteria as are mutually agreed-upon in writing. Client shall have up to forty-five (45) days to complete the non -production testing for a Software module. After Client has completed such non -production testing for a Software module that performs as provided for in this Agreement and the other recited documents, Client shall notify Tyler in writing that "Conditional Acceptance" of such Software module(s) has occurred. If Client and Tyler determine that a Software module does not perform as provided for in this Agreement and the other recited documents, then Client shall deliver to Tyler a report describing the discrepancies. Tyler shall correct the errors or defects and Client may re -test the Software module(s), and at the end of such re -test the process described in this Section B/Subsection 4(a) shall be repeated. This procedure shall continue until Conditional Acceptance of the Software module(s) occurs. If Client and Tyler cannot mutually agree on whether a Software module performs in accordance with the requirements of this Agreement and the other recited documents, the dispute will first be taken up in a dispute resolution process which the parties have mutually developed in accordance with Section F/Subsection 6. Failing resolution, the parties may pursue remedies available to them pursuant to this Agreement or at law or in equity. b) Final Acceptance Once Conditional Acceptance of each of the Software modules has occurred, Client will determine a Go -Live Date and begin Live Testing the Software module in a production environment. After Client has operated the Software module for up to seventy-five (75) consecutive calendar days and there are no reported unresolved Priority 1 or Priority 2 issues (for which there is no reasonable work -around that Client can use), Final Acceptance shall be issued by Client. If the Priority 1 and/or Priority 2 issues are resolved within the last fifteen (15) days of the seventy-five (75) day period, Client will have an additional fifteen (15) days of Live Testing. Priority 1 and Priority 2 issues and their resolution procedures are defined in the Support Call Process attached as Exhibit 3. Failure to materially adhere to these procedures by Tyler may be interpreted by Client, at Client's reasonable discretion, as a "Failure of Live Testing" as described in Section B/Subsection 4(c). The Go -Live Date may be adjusted by mutual agreement of Client and Tyler, and such agreement shall not be unreasonably withheld by either party. Go -Live Date and Final Acceptance shall occur by Phase. c) Failure of Live Testing If, after Live Testing, the ERP System and/or Software modules do not function in compliance with the requirements and warranties of this Agreement, Client shall have the option, upon notice to Tyler, to: In the event of a Priority 1 issue, terminate the entire Agreement for cause in accordance with the provisions hereof; or ii. Accept the ERP System at its then -existing level of performance; or iii. Permit the Live Testing to be further extended for such period as mutually agreed upon by the parties in writing; or iv. Accept those portions of the ERP System which pass the acceptance criteria and require Tyler to correct the remaining portions, in which event Client shall not be liable for any payments associated with the implementation of such remaining portions until they have been Accepted; or V. Pursue such remedies as may be available to Client at law or in equity. Final Acceptance of the ERP System by the Client will not release Tyler from complying with the warranties and maintenance requirements set forth in this Agreement. 5. Cancellation. In the event Client cancels services less than two (2) weeks in advance of the mutually scheduled date of services, Client is liable to Tyler for the following: a) All non-refundable expenses incurred by Tyler on Client's behalf, and b) Tyler's then -current daily fees charged to clients for such services, only if Tyler is actually unable to re -assign its personnel. 6. Services Warranty. Tyler warrants that it shall perform services in a professional, good and workmanlike manner, consistent with industry standards. In the event Tyler provides services that do not conform to this warranty, Tyler will re -perform the services at no additional cost to Client. SECTION C: MAINTENANCE 1. Scope of Agreement. Client agrees to purchase and Tyler agrees to provide maintenance services for the Tyler Software Products in accordance with the following terms and conditions. 2. Additional Charges. Any maintenance services performed by Tyler for Client, at Client's express direction, which are not covered by this SaaS Agreement, (see Limitations and Exclusions at Section C/Subsection 4), including materials and expenses, will be billed to Client at Tyler's then -current rates. 3. Maintenance Services Terms and Conditions. For as long as this SaaS Agreement is in place, Tyler shall: a) In a professional, good and workmanlike manner, consistent with industry standards, perform its obligations in accordance with Tyler's then -current support call process (Tyler's current support call process is set forth herein in Exhibit 3), in order to conform the Tyler Software Products to the applicable warranty under this Agreement. If there is an objective determination that Client has modified the Tyler Software Products without Tyler's prior written consent, Tyler's obligations to provide maintenance services on and to warrant the Tyler Software Products will be void. b) Provide telephone support on the Tyler Software Products. Tyler personnel shall accept telephone calls during the hours delineated in the Support Call Process in Exhibit 3. c) Continuously maintain a master set of the Tyler Software Products on appropriate media, a hardcopy printout of source code to the Tyler Software Products, and Tyler User Guides. d) In order to provide maintenance services, maintain personnel that are appropriately trained to be familiar with the Tyler Software Products. e) Provide Client releases of the Tyler Software Products that Tyler makes generally available without additional charge to customers possessing a current Tyler SaaS Agreement. If required by Client, Third Party Products, Consulting and Training services related to the new releases will be provided to Client at Tyler's then -current prices. Client acknowledges and agrees that a new release of the Tyler Software Products is for implementation in the Tyler Software Products as they exist without Client customization or modification. f) Support prior releases of the Tyler Software Products in accordance with Tyler's then -current release life cycle policy. 4. Limitations and Exclusions. Maintenance fees do not include installation or implementation of Tyler Software Products, onsite support, application design, other consulting services, or support outside Tyler's normal business hours. 5. Access to Environment. Client shall provide, at no charge to Tyler, full and free access to the Tyler Software Products hosted by Tyler in order, when necessary, to provide maintenance services set forth herein. SECTION D: THIRD PARTY PRODUCTS 1. Afzreement to License or Sell Third Party Products. For the price set forth in the Investment Summary, Tyler agrees to license or sell and deliver to Client, and Client agrees to accept from Tyler, the System Software and Hardware delineated in the Investment Summary (collectively, the "Third Party Products"). 2. License of System Software. a) Upon Client's payment in full of the System Software fees, Tyler shall grant to Client and Client shall accept from Tyler a non-exclusive, nontransferable, non -assignable license to use the System Software and related documentation for Client's internal business purposes, subject to the terms and conditions set forth herein. b) The developer of the System Software (singularly a "Developer," collectively "Developers") shall retain ownership of the System Software. c) The right to transfer the System Software to a replacement hardware system, if such System Software is installed on Client -owned hardware, is governed by the Developer. The cost for new media or any required technical assistance to accommodate the transfer would be billable charges to Client. Client shall provide advance written notice to Tyler of any such transfer. d) Client acknowledges and agrees that the System Software and related documentation are proprietary to the Developer and have been developed as trade secrets at the Developer's expense. Client shall use reasonable efforts to keep the System Software and related documentation confidential and to prevent any misuse, unauthorized use, or unauthorized disclosure of the System Software and related documentation by any party under City's authority or control. e) Client shall not perform de -compilation, disassembly, translation or other reverse engineering on the System Software. f) Client may make copies of the System Software if installed on Client hardware, but such copies shall be for archive purposes only. Client shall repeat any and all proprietary notices on any copy of the System Software. Client may make copies of the documentation accompanying the System Software for internal use only. 3. Delive . Unless otherwise indicated in the Investment Summary, the prices for Third Party Products include costs for shipment while in transit from the Developer or supplier to Client. 4. Installation and Acceptance. Unless otherwise noted in the Investment Summary, the Tyler Software Product installation fee includes installation of the Third Party Products. Upon completion of installation, Client will obtain from Tyler a certification of completion, or similar document, which will constitute Client's acceptance of the Third Party Products. Such acceptance will be final and conclusive except for latent defect, fraud, and gross mistake amounting to fraud. 5. Site Requirements. Client shall provide a suitable on -premises environment, location and space for the installation and operation of the Third Party Products being installed, sufficient and adequate electrical circuits for the Third Party Products, and installation of all required cables. 6. Warranties. a) Tyler is authorized by each Developer to grant licenses or sublicenses to the System Software. b) Tyler warrants that each System Software product will be new and unused, and if Client fully and faithfully performs each substantive obligation required of it under this Third Party Product Agreement, Client's title or license to each System Software product will be free and clear of all liens and encumbrances arising through Tyler. c) Client acknowledges and agrees that Tyler is not the manufacturer of the Third Party Products. As such, Tyler does not warrant or guarantee the condition or operating characteristics of the Third Party Products. Tyler hereby grants and passes through to Client any warranty adjustments that Tyler may receive from the Developer or supplier of the Third Party Products. 7. Maintenance. a) In the event Client elects not to purchase maintenance services on the System Software through Tyler, it will be the responsibility of Client to repair and maintain the System Software and purchase enhancements as necessary after acceptance. b) In the event Client elects to purchase maintenance services on the System Software through Tyler, Tyler will facilitate resolution of a defect in a System Software product with the Developer. c) In the event the Developer charges a fee for future System Software release(s), Client will be required to pay such fee. 8. Limitation of Liability with Regard to Third Party Products Only. In no event shall Tyler be liable for special, indirect, incidental, consequential, or exemplary damages, including, without limitation, any damages resulting from loss of use, loss of data, interruption of business activities, or failure to realize savings arising out of or in connection with the use of the Third Party Products. Tyler's liability for damages and expenses arising out of this Third Party Product Agreement, whether based on a theory of contract or tort, including negligence and strict liability, will be limited to the License Fee/Purchase Price of the Third Party Products paid by Client. Such prices are set in reliance upon this limitation of liability. SECTION E: SOFTWARE AS A SERVICE 1. Term. The term of this SaaS Agreement shall be January 1, 2013 through December 31, 2019 (the "Term"). 2. Hosting. Tyler shall host and make available to Client the Tyler Software Products listed in the Investment Summary attached hereto as Exhibit 1. 3. Concurrent Users. The SaaS Fees are based upon one hundred (100) concurrent users. Should the number of concurrent users be exceeded on a consistent basis over a three (3) month period, Tyler shall supply Client with written documentation evidencing the excess of concurrent users for that time period. Tyler reserves the right to re -negotiate the SaaS Fees based upon any resulting changes in the pricing categories. A written request to re -negotiate such SaaS Fees, due to the excess of concurrent users, shall be submitted to Client, along with the documentation, with any increase in fees to take effect no sooner than one quarter after such request is received. Self Service users are excluded from one hundred (100) concurrent user totals. 4. Access to Products in Accordance with Service Level Agreement. For as long as this SaaS Agreement is in effect, Tyler shall provide Client access to the Tyler Software Products then -licensed by Client in accordance with Tyler's then -current Service Level Agreement. The current Service Level Agreement is attached hereto as Exhibit 2. 5. Software Performance Resolution of Disputes. Notwithstanding anything to the contrary contained herein, in the event of disputes pertaining to performance levels, upon Tyler's failure to meet mutually agreed-upon performance levels for thirty (30) calendar days, each party shall appoint an authorized representative to cooperate in developing a mutually agreeable problem resolution plan which shall include a description of internal diagnostic procedures. Tyler shall perform according to the problem resolution plan and shall be responsible for updating any hardware on Tyler's site or taking additional action within Tyler's control to reach the agreed-upon performance level. In the event of a dispute between the parties under this Agreement pertaining to pecuniary damage or losses, the matter shall be settled in accordance with Section F/Subsection 6. 6. The Client agrees to timely pay and Tyler agrees to accept from Client as payment in full the SaaS Fees listed in the Investment Summary in Exhibit 1, and such payments on the part of City shall be made in accordance with this Agreement and the Texas Prompt Payment Act. Client acknowledges that continued access to the Tyler Software Products for itself and any Hosted Entities is contingent upon Client's payments of SaaS Fees in accordance with this Agreement and the Texas Prompt Payment Act. If Client fails to remit the SaaS Fees as required, Tyler shall have the right to terminate this Agreement and deny access to the hosted applications for Client, only upon Tyler having given Client thirty (30) days' prior written notice of Tyler's intent to terminate. 7. Prices include test, training, and production databases. 8. TCM SE hosting includes up to 50GB of storage. Should additional storage be needed, it may be purchased as needed at an annual fee of $1,000 per 100GB with no total cap on storage. SECTION F: GENERAL TERMS AND CONDITIONS 1. Taxes. The fees set forth in the Investment Summary attached hereto as Exhibit 1 do not include any taxes, including, without limitation, sales, use or excise tax. City is a tax-exempt entity, and shall provide Tyler with City's tax-exempt certificate. 2. Invoice Dispute. a) In the event Client believes products or services do not conform to warranties delineated in this Agreement, Client will provide written notice to Tyler within thirty (30) calendar days of receipt of the applicable invoice. Client is allowed an additional fifteen (15) calendar days to provide written clarification and details. Tyler will provide a written response to Client that will include either a justification of the invoice or an adjustment to the invoice. Tyler and Client will develop a plan to outline the reasonable steps to be taken by Tyler and Client to resolve any issues presented in Client's notice to Tyler. Client may only withhold payment of the amount actually in dispute until Tyler completes its action items outlined in the plan. Notwithstanding the foregoing, if Tyler is unable to complete its actions outlined in the plan because Client has not completed its action items outlined in the plan, Client will remit full payment of the invoice. 10 b) Any invoice not disputed as described above will be deemed accepted by Client, and will be paid in accordance with this Agreement and the Texas Prompt Payment Act. Tyler reserves the right to suspend delivery of services in the event Client fails to pay undisputed invoices within sixty (60) calendar days of receipt and Tyler reasonably believes that Client may not pay for any services delivered thereafter. 3. Force Mature; Assistance by Client. "Force Majeure" is defined as an event beyond the reasonable control of a party, including governmental action, war, riot or civil commotion, fire, natural disaster, labor disputes, restraints affecting shipping or credit, delay of carriers, inadequate supply of suitable materials or any other cause which could not with reasonable diligence be foreseen, controlled or prevented by the party. Neither party shall be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure. Force Majeure will not be allowed unless: a) Within ten (10) business days of the occurrence of Force Majeure, the party whose performance is delayed thereby provides the other party or parties with written notice explaining the cause and extent thereof, as well as a request for a time extension equal to the estimated duration of the Force Majeure events. b) Within ten (10) business days after the cessation of the Force Majeure event, the party whose performance was delayed provides the other party written notice of the time at which Force Majeure ceased and a complete explanation of all pertinent events pertaining to the entire Force Majeure situation. Either party will have the right to terminate this Agreement if Force Majeure suspends performance of scheduled tasks by one or more parties for a period of one hundred -twenty (120) or more days from the scheduled date of the task. This paragraph will not relieve Client of its responsibility to pay for services and goods provided to Client and allowable expenses incurred on behalf of Client prior to the effective date of termination. In addition, Client acknowledges that the implementation of the Tyler Software Products is a cooperative process requiring the time and resources of Client personnel. Client shall, and shall cause Client personnel to, use all reasonable efforts to cooperate with and assist Tyler as may be reasonably required to meet the project deadlines and other milestones agreed to by the parties for implementation. Tyler shall not be liable for failure to meet such deadlines and milestones when such failure is due to Force Majeure (as defined above) or to the reasonably and objectively documented failure by Client personnel to provide such cooperation and assistance (either through action or omission). 4. Indemnification & Limitation of Liability. a) Tyler shall indemnify and hold harmless Client and its agents, officials and employees from and against any and all direct claims, losses, liabilities, damages, costs and expenses (including reasonable attorney's fees and costs) for personal injury or property damage arising from Tyler's negligence or willful misconduct. b) To the extent allowable by law, Client shall indemnify and hold harmless Tyler and its agents, officials and employees from and against any and all direct claims, losses, liabilities, damages, costs and expenses (including reasonable attorney's fees and costs) for personal injury or property damage arising from Client's negligence or willful misconduct. 11 c) Limitation of Liability. In no event shall Client be liable for special, indirect, incidental, consequential or exemplary damages. In no event shall Tyler be liable for special, indirect, incidental, consequential or exemplary damages, including without limitation any damages resulting from loss of use, loss of data, interruption of business activities or failure to realize savings arising out of or in connection with the use of the Tyler Software Products. In no event shall Tyler be liable for damages in excess of amounts paid by Client for the SaaS Fees identified in the Investment Summary attached hereto as Exhibit 1, and paid by Client. This limitation applies to all causes of action in the aggregate, including without limitation breach of warranty, negligence, strict liability and misrepresentation and other torts. The fees herein reflect and are set in reliance upon this allocation of risk and the exclusion of such damages as set forth in this Agreement. The foregoing limitation of liability is not applicable to Third Party Products. 5. Disclaimer. THE RIGHTS, REMEDIES, AND WARRANTIES SET FORTH IN THIS SaaS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF ALL OTHER RIGHTS, REMEDIES, AND WARRANTIES EXPRESSED, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND SYSTEM INTEGRATION, WHICH ARE HEREBY DISCLAIMED BY TYLER. 6. Dispute Resolution. The parties hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute. In the event of a claim or dispute arising under this Agreement, the parties agree to mutually develop and pursue a dispute resolution process and will use reasonable efforts to efficiently address and resolve the claim or dispute through such dispute resolution process. Failing resolution, the parties may pursue remedies available to them pursuant to this Agreement or at law or in equity. 7. No Intended Third Party Beneficiaries. This Agreement is entered into solely for the benefit of Tyler and Client. No third party will be deemed a beneficiary of this Agreement, and no third party will have the right to make any claim or assert any right under this Agreement. 8. Governing Law. This Agreement will be governed by and construed in accordance with the laws of Clients state of domicile, that being Texas, and jurisdiction and venue for any action shall lie in Williamson County. 9. Entire Agreement. This Agreement represents the entire agreement of Client and Tyler with respect to the subject matter hereof, and supersedes any prior agreements, understandings, and representations, whether written, oral, expressed, implied, or statutory. Client hereby acknowledges that in entering into this Agreement it did not rely on any information not explicitly set forth in this Agreement. 12 10. Severability. If any term or provision of this Agreement or the application thereof, to any extent, be held invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable will not be affected thereby, and each term and provision of this Agreement will be valid and enforced to the fullest extent permitted by law. 11. No Waiver. In the event that the terms and conditions of this Agreement are not strictly enforced by Tyler or Client, such non -enforcement shall not act as or be deemed to act as a waiver or modification of this Agreement, nor shall such non -enforcement prevent Tyler or Client from enforcing each and every term of this Agreement thereafter. 12. Multiple Originals and Si agn tures. This Agreement may be executed in multiple originals, any of which shall be independently treated as an original document. 13. Amendment. This Agreement may only be modified by written amendment signed by authorized representatives of both parties. 14. Non -Appropriation and Termination. If Client should not appropriate or otherwise make available funds sufficient to pay the SaaS Fees for the Tyler Software Products set forth in this Agreement, Client may unilaterally terminate this Agreement only upon thirty (30) days' written notice to Tyler. Termination for non -appropriation does not include the right to terminate this Agreement in order to obtain the same or similar services from a different vendor. Client may terminate this Agreement for convenience, or for cause in the event Tyler does not cure a material breach of this Agreement within thirty (30) days of receiving notice of such breach from Client. Upon any termination of this SaaS Agreement, Client shall pay Tyler for all services and products delivered and expenses incurred prior to the date Tyler received Client's notice of termination. Additionally, Client will be responsible for payment to any third parties for the purchase of Systems software, or other third party software or hardware delivered to Client's site as of the date of termination or cancellation. Upon evidence of Tyler's agreement, which agreement shall not be unreasonably withheld, Client shall be entitled to have Tyler perform professional services related to migration to another product. Such services, if performed, shall be at Tyler's then -current rates, and shall be performed at such time as the parties may mutually agree. Matters regarding disputes concerning payment for products, services and expenses shall be settled in accordance with Section F/Subsection 6. Upon termination by any party or method, Tyler will provide Client the client data then residing in the Tyler -hosted environment. The data shall be provided in ASCII or such other format as may be 13 mutually agreed by the parties. Provided that Client gives at least ten (10) days' advance notice to Tyler, a copy of such data will be provided no later than sixty (60) days prior to the Termination Date and again seven (7) days after the Termination Date. 15. Approval of Governing Body. Client represents and warrants to Tyler that this Agreement has been approved by its governing body and is a binding obligation upon Client. 16. No Assignment. Neither party may assign its rights and responsibilities under this Agreement without the other party's prior written permission, and such permission shall not be unreasonably withheld, except that Tyler, without receiving such prior written permission, may assign the award or the mutually negotiated contract in its entirety to the surviving entity of any merger or consolidation or to any purchaser of substantially all of Tyler's assets. 17. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their permitted successors and assigns. 18. Notices. All notices or communications required or permitted as a part of this Agreement will be in writing (unless another verifiable medium is expressly authorized) and will be deemed delivered when: a) Actually received; b) Upon receipt by sender of a CM/RRR card, signed by an employee or agent of the party; C) Upon receipt by sender of proof of email delivery; or d) If not actually received, ten (10) days after deposit with the United States Postal Service authorized mail center with proper postage (certified mail/return receipt requested) affixed and addressed to the respective other party at the address set forth in this Agreement or such other address as the party may have designated by notice or amendment to the other party. Consequences to be borne due to failure to receive a notice due to improper notification by the intended receiving party of a new address will be borne by the intended receiving party. The addresses of the parties to this Agreement are as follows: To Tyler: Tyler Technologies, Inc. 1 Cole Haan Drive Yarmouth, ME 04096 Attention: Contracts Manager 14 To City: City of Round Rock 221 East Main Street Round Rock, TX 78664 Attention: City Manager and to: City Attorney Stephan L. Sheets 309 East Main Street Round Rock, TX 78664 19. Independent Contractor. This is not an agreement of partnership or employment of Tyler or any of Tyler's employees by Client. Tyler is an independent contractor for all purposes under this Agreement. 20. Insurance. Prior to performing services under this Agreement, Tyler shall provide Client with certificates of insurance evidencing the following insurance coverage: a) Commercial general liability of at least $1,000,000; b) Automobile liability of at least $1,000,000; c) Professional liability of at least $1,000,000; and d) Workers compensation complying with statutory requirements. 21. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights of private individuals and entities. Each party agrees that it shall not disclose any confidential information of the other party and further agrees to take appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Agreement for a period of two (2) years. This obligation of confidentiality will not apply to information that: a) At the time of the disclosure is in the public domain; b) After disclosure, becomes part of the public domain by publication or otherwise, except by breach of this Agreement by a party; c) A party can establish by reasonable proof was in that party's possession at the time of disclosure; d) A party receives from a third party who has a right to disclose it to that party; or 15 e) Is subject to the Public Information Act, Chapter 552 of the Texas Government Code (hereinafter, the "Public Information Act"). Tyler expressly acknowledges its understanding that City is subject to the Public Information Act, and its awareness and agreement that City will respond to information requests in accordance with the Act. In accordance with the Public Information Act, Client shall make a good faith effort to inform Tyler of any requests for Tyler trade secret information, including without limitation, information in which Tyler holds a proprietary interest. 22. Nondiscrimination. Tyler shall not discriminate against any person employed or applying for employment concerning the performance of Tyler's responsibilities under this Agreement. This discrimination prohibition will apply to all matters of initial employment, tenure, and terms of employment, or otherwise with respect to any matter directly or indirectly relating to employment concerning race, color, religion, national origin, age, sex, sexual orientation, ancestry, disability that is unrelated to the individual's ability to perform the duties of a particular job or position, height, weight, marital status, or political affiliation. 23. Subcontractors. Tyler shall not subcontract any services under this Agreement without Client's prior written permission, and such permission shall not be unreasonably withheld. 24. Shipping. Delivery will be F.O.B. destination. 25. Business License. In the event a local business license is required for Tyler to perform services hereunder, Client will notify Tyler prior to the Effective Date and will provide Tyler with the necessary paperwork and/or contact information. 26. Tyler Forms Processing. The Tyler Software Product "Tyler Forms Processing" must be used in conjunction with a Hewlett Packard printer supported by Tyler for printing checks. 27. Electronic Payment. Tyler prefers to receive payments electronically. Tyler's electronic payment information is as follows: Bank: Wells Fargo Bank, N.A. 420 Montgomery San Francisco, CA 94104 ABA: 121000248 Account: 4124302472 Beneficiary: Tyler Technologies Inc. — Operating 28. Optional Items. Pricing for optional products and services shall be valid for twelve (12) months from the Effective Date. 16 29. Tyler Products and Services. Client may purchase additional Tyler products and services at then -current list price, pursuant to the terms of this Agreement, by executing a mutually agreed addendum. 30. Payment Terms. a) Client shall pay undisputed invoices within thirty (30) calendar days of invoice receipt. The foregoing notwithstanding, the parties expressly acknowledge that Client shall make payment in accordance with the Texas Prompt Payment Act. b) The total financial obligation of Client to Tyler for the software products and services listed in the Investment Summary attached hereto as Exhibit 1 is the amount of $1,982,307.00, and shall be paid as follows: i. Hardware fees of $1,650.00 will be invoiced upon delivery of the Secure Signature Hardware; ii. Hardware fees of $14,435.00 will be invoiced upon delivery of the BMI Hardware; iii. Unless otherwise indicated, fees for services, plus expenses, will be invoiced as provided and/or incurred. iv. VPN Device Installation Fee of $4,000.00 will be invoiced when provided. v. Project Planning Services fee of $9,000.00 will be invoiced upon delivery of the Project Plan. vi. On or before the first day of the Term of this Agreement, and on or before the first day of every third month thereafter through the end of the Term, Client will remit to Tyler quarterly SaaS Fees in the amount of $60,111.50, for a projected seven-year total of $1,683,122.00. c) Prices do not include travel expenses incurred in accordance with Tyler's then -current Business Travel Policy. Estimated travel expenses are delineated in the Investment Summary attached hereto as Exhibit 1. Tyler's current Business Travel Policy is attached hereto as Exhibit 4. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth below. Tyler Technologies, Inc. City of Round Rock, Texas ERP and Schools Division i At Name: am Title: Title: Date: Date: 17 Exhibit I Investment Summary Annual Saas MUNIS Applications costs Software Imp days Conversion Accounting/GL/BG/AP $46,262 22 $12,300 Fixed Assets $13,994 8 $5,500 Purchase Orders $13,874 8 $3,000 Project and Grant Accounting $10,520 6 $5,000 Requisitions $9,834 10 Risk Management $10,520 6 MUNIS Cash Management $9,834 5 Contract Management $6,348 4 BMI Asset Track Interface $2,188 3 Pa roll w/ESS $13,585 20 $18,800 HR Management $6,660 8 Applicant Tracking $3,174 4 Professional Development $3,775 3 General Billing $5,771 7 $9,800 Accounts Recievable $12,720 13 Tyler Content Manager SE $17,336 8 Role Tailored Dashboard $9,546 7 MUNIS Office $9,546 3 Tyler Reporting Services $11,565 3 Tyler content Manager Auto Indexing and Redaction $2,885 2 Tyler Content Manager Web License $2,885 2 Business and Vendor Self Service $9,834 1 Tyler Forms Processing $7,790 0 Subtotals=Software, Imp Days, Conversion $240,446 153 $54,400 One Time Year 1 Expenses: Other Services AP/PR Check Recon import $1,000 AP Positive Pay Export Format $3,000 P -Card Import Format W/encumbrances $15,000 Project Planning Services $9,000 PR Positive Pay Export Format $3,000 System Admin & Security $3,525 Tyler Forms Library - Financial/General Billing $4,500 Tyler Forms Library- Payroll $1,400 Tyler Forms Processing Configuration $2,000 Tyler PO Distri bution - Level 4 $2,500 VPN Device $4,000 Other Services Subtotal $48,925 3rd Party Hardware,Software and Services BMI PA600 Pocket AssetTra k $2,295 BMI-AssetTrack-PPC for MUNIS (include Install feel $6,500 BMI PA600 Pocket Tra ns Trak $2,295 BMI Transtrak Fixed Asset Receiving System $3,345 Tyler Secure Signature System with 2 Keys $1,650 3rd Party Hardware,5oftware and Services Subtotal $16,085 Services to be paild as incurred Subtotal Implementation days =15301175 $179,775 Subtotal Data Conversions $54,400 Services To be paid as Incurred Subtotal $234,175 Total or Services to be Paid as Incurred - $299,185 Year I Year 2 Year 3 Year 4 Year s Year Year 7 Yearly Totals $539,631 -'- $240,446 $240,4461 $240446 $240 446 $240446 $240,446 7 Year Total SaaSAnnual Fees only$1,683,122 7ota17 Year Cost less Expenses $1198Z307 Total including Estimated Expenses $2,061,867 Estimated Expenses: Total Days Ai rfare $750 X #days / 3 day stay $38,250 153 Food =$70 perday $10,710 153 Car =$75 per day $11,475 153 Hotel =$125 perday $19,125 153 Estimated Total Expense $79,560 Conversion Detail SaaS Annual Amount Service Days 01175 AC Opt 1- Actuals $1,500 AC Opt 2 - Budgets $1,500 AC Standard COA $2,000 AP Opt 1 Checks $2,000 Ap Opt 2Invoice $3,500 AP Standard Master $1,800 FA Opt 1 History $2,000 FA Std Master $3,500 GB Opt 1 Recurring Invoices $3,500 GB Opt 2 Bills $4,500 GB STD CI D $1,800 PGA Standard $2,000 PG Opt 1Actuals $1,500 PG Opt 2 Budgets $1,500 PR Payroll - Option 10 Certification $1,400 PR Payroll - Option 11 Education $1,400 PR Payroll - Option 1 Deductions $1,800 PR Payroll - Option 2 Accrual Balances $1,500 PR Payroll - Option 3 Accumulators - $1,400 PR Payroll - Option 4 Check History $1,200 PR Payroll - Option 5 Earning/Deduction Hist $2,500 PR Payroll - Option 6Applicant Tracking $1,400 PR Payroll - Option 7 PM Action History $1,400 PR Payroll - Option 8 Position Control $1,400 PR Payroll - Option 9 State Retirement Tables $1,400 PR Payroll - Standard - $2,000 Purchase Orders - Standard $3,000 Total Conversions Costs $54,400 Optional Items Software SaaS Annual Amount Service Days 01175 Conversion Inventory Software $13,941 8 $6,200 Citizens Self Service Software $12,674 1 Standard Fuel Interface $1,994 3 Work Orders/Fleet and Facilities $17,426 25 $17,500 Tyler Incident Management $12,674 10 Maplink GIS Software $9,5051 1 Employee Expense Reimbursement $5,1851 8 GASB 34 Report Writer 11 4 Detailed Conversion In Option 1- Commodity Codes $2,200 In Std Master $4,000 WO Opt 1- Wrk Order Asset $4,500 WO Opt 2 - Closed Wrk Order Hist No Cost Data $6,500 WO Opt 3 - WO Hist with Cost Data $6,500 Exhibit 2 Service Level Agreement I. Agreement Overview This Service Level Agreement ("SLA") operates in conjunction with, and does not supersede or replace any part of, the SaaS Agreement. This SLA outlines the information technology service levels that Tyler will provide to Client to ensure the availability of the application services that the Client has contracted with Tyler to provide. All other Client support services are documented in the Support Call Process exhibit to the SaaS Agreement. II. Definitions Attainment: The percentage of time a service is available during a billing cycle, with percentages rounded to the nearest whole number. Client Error Incident: Any service unavailability resulting from a Client's applications, content or equipment, or the acts or omissions of any of Client's service users or Client's third -party providers over whom Tyler exercises no control. Defect: Any failure of the licensed software that is recognized as a "defect" under the agreement through which Client licenses the Tyler software. Downtime: Those minutes during which the software products set forth in the SaaS Agreement are not available for any type of Client use. Downtime does not include those instances in which only a Defect is present. Force Majeure: An event beyond the reasonable control of Tyler, including governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause which could not with reasonable diligence be foreseen, controlled, or prevented by the party. Service Availability: The total number of minutes in a billing cycle that a given service is capable of receiving, processing, and responding to requests, excluding maintenance windows, Client Error Incidents and Force Majeure. III. Service Availability The Service Availability of Tyler's applications is intended to be 24/7/365. Tyler sets Service Availability goals and measures whether it has met those goals by tracking Attainment. a. Client Responsibilities Whenever a Client experiences Downtime, that Client must make a support call according to the procedures outlined in the Support Call Process exhibit. The Client will receive a support incident number. To track attainment, the Client must document, in writing, all Downtime that it has experienced during a billing cycle. The Client must deliver such documentation to Tyler within 30 days of a billing cycle's end. The documentation the Client provides must evidence the Downtime clearly and convincingly. It must include, for example, the support incident number(s) and the date, time and duration of the Downtime(s). b. Tyler Responsibilities When Tyler's support team receives a call from a Client that a Downtime has occurred or is occurring, Tyler will work with the Client to identify the cause of the Downtime (including whether it may be the result of a Client Error Incident or Force Majeure). Tyler will also work with the Client to resume normal operations. Upon timely receipt of a Client's Downtime report, outlined above in Section III(a), Tyler will compare that report to Tyler's own outage logs and support tickets to confirm that a Downtime for which Tyler was responsible indeed occurred. Tyler will respond to a Client's Downtime report within 30 day(s) of receipt. To the extent Tyler has confirmed Downtime for which Tyler is responsible, Tyler will provide Client with the relief set forth below. c. Client Relief When a Service Availability goal is not met due to confirmed Downtime, Tyler will provide the affected Client with relief that corresponds to the percentage amount by which that goal was not achieved, as set forth in the Client Relief Schedule below. Notwithstanding the above, the total amount of all relief that would be due under this SLA will not exceed 5% of the fee for any one billing cycle. Issuing of such credit does not relieve Tyler of its obligations under the SaaS Agreement to correct the problem which created the service interruption. A correction may occur in the billing cycle following the service interruption. In that circumstance, if service levels do not meet the corresponding goal for that later billing cycle, Client's credits will be doubled. Every billing cycle, Tyler will compare confirmed Downtime to Service Availability. In the event actual Attainment does not meet the targeted Attainment, the following Client relief will apply: Client Relief Schedule Targeted Attainment Actual Attainment Client Relief 100% 98-99% Remedial action will be taken. 100% 95-97% 4% credit of fee for affected billing cycle will be posted to next billing cycle 100% <95% 5% credit of fee for affected billing cycle will be posted to next billing cycle A Client may request a report from Tyler that documents the preceding billing cycle's Service Availability, Downtime, any remedial actions that have been/will be taken, and any credits that may be issued. IV. Applicability The commitments set forth in this SLA do not apply during maintenance windows, Client Error Incidents, and Force Majeure. Tyler performs maintenance during limited windows that are historically known to be reliably low -traffic times. If and when maintenance is predicted to occur during periods of higher traffic, Tyler will provide advance notice of those windows and will coordinate to the greatest extent possible with the Client. V. Force Majeure The Client will not hold Tyler responsible for meeting service levels outlined in this SLA to the extent any failure to do so is caused by Force Majeure. In the event of Force Majeure, Tyler will file with the Client a signed request that said failure be excused. That writing will at least include the essential details and circumstances supporting Tyler's request for relief pursuant to this Section. The Client will not unreasonably withhold its acceptance of such a request. Exhibit 3 Support Call Process Client Support Tyler Technical Support Department for Munis® Goal: To provide an effective support mechanism that will guarantee timely resolution to calls, resulting in high-level client satisfaction. Contact Us Call Tyler's toll free number (800-772-2260) or log a support request online through the Tyler Client Portal available at Tyler's Support Web site (www.iylertech.com). Support Organization Tyler's Technical Support Department for Munis is divided into multiple teams: Financials, Payroll/HR/Pension, Tax/Other Revenue and Collections, Utility Billing and Collections, OS/DBA (Operating System and Database Administration), and TylerForms and Reporting Services. These "product -specific" teams allow support staff to focus on a group of products or services. A group of specialists assigned to each team handle calls quickly and accurately. Each team consists of a Munis Support Product Manager, Support Analysts and Technical Support Specialists. The Support Product Manager is responsible for the day-to-day operations of the team and ensures we provide exceptional technical support to our clients. The Support Analysts are responsible for assisting the team with clients' issues, and provide on-going team training. Technical Support Specialists are responsible for diagnosing and resolving client issues in a timely and courteous manner. Standard Support Hours Applications Hours Financials 8:00am-9:00pm EST Monday -Friday* Payroll/HR/Pension 8:00am-9:00pm EST Monday -Friday* Tax/Other Revenue & Collections 8:00am-6:00pm EST Monday -Friday Utility Billing & Collections 8:00am-8:00pm EST Monday -Friday OS/DBA 8:00am-9:00pm EST Monday -Friday TylerForms & Reporting Services 8:00am-5:00pm EST Monday -Friday * Hours as of 1/1/2013 Focus on Incoming Rate When you call Technical Support, your call is answered by a Support Technician, or is transferred into the Support voice mail. Our goal is to capture 75% of our daily calls incoming, which means you will often start working with a Support Specialist immediately upon calling Tyler. Tyler will respond to all Priority 1 calls received in the same business day and will continue to work on the incident, after business hours if necessary, until either a resolution or work -around is established or the parties reasonably agree to suspend discussion until the beginning of the next business day. Leaving Messages for Support When leaving a message on the Support voice mail, ensure the following information is contained within the message: • Your full name (first name, last name) and the site you are calling for/from • A phone number where you can be reached • The details of the issue or question you have (i.e.: program, • process, error message) • The priority of the issue (1, 2, 3, or 4) • When you will be available for a return call (often Support will call back within an hour of receiving your message) Paging All client questions are important to us. There may be times when you are experiencing a priority 1 critical issue and all technicians for the requested team are on the line assisting clients. In this circumstance, it is appropriate to press 0 to be redirected to the operator. The operator will page the team you need to contact. We ask that you reserve this function for those times when Munis is down, or a mission critical application is down and you are not able to reach a technician immediately. Online Support Some questions can be handled effectively by e-mail. Once registered as a user on Tyler's Support Web site at www.tylertech.com, you can ask questions or report issues to Support through "Customer Tools". Tyler's Client Portal (TCP) allows you to log an incident to Technical Support anytime from any Internet connection. All TCP account, incident and survey data is available in real-time. Your existing contact information defaults when you add a new Support incident. You will be asked for required information including Incident Description, Priority, Product Group and Product Module. Unlimited work -note text is available for you to describe the question or problem in detail, plus you can attach files or screenshots that may be helpful to Support. When a new incident is added, the incident number is presented on the screen, and you will receive an automated e-mail response that includes the incident number. The new incident is routed to the appropriate Technical Support Team queue for response. They will review your incident, research the item, and respond via e-mail according to the priority of the incident. (See Priority Table) Customer Relationship Management System Every call or e-mail from you is logged into our Customer Relationship Management System and given a unique call number. This system tracks the history of each incident, including the person calling, time of the call, priority of the call, description of the problem, support recommendations, client feedback and resolution. For registered users on Tyler's Support Web site (www.tylertech.com), a list of calls is available real-time under the Tyler Client Portal (TCP). Call Numbers Support's goal is to return clients' calls as soon as possible. If you are not available when we call back, we will leave a message with the open call number on your voice mail or with a person in your office. When you call back, you can reference this call number so you do not have to re -explain the issue. An open call number is also given to you once an initial contact has been made with Support and it has been determined that the issue can't be resolved during the initial call. The open call number lets you easily track and reference specific open issues with Support. Call Response Goals Open Call Priority Maximum number of days a support call is open Support managers and analysts review open calls 1 Less than a day Dail 2 10 Days or less Every other day 3 30 Days or less Weekly 4 60 Days or less Weekly Call Priorities A call escalation system is in place where, each day, Support Analysts and Product Support Managers, review open calls in their focus area to monitor progress. Each call logged is given a priority (1, 2, 3, and 4) according to the client's needs/deadlines. The goal of this structure is to clearly understand the importance of the issue and assign the priority for closure. The client is responsible for setting the priority of the call. Tyler Support for Munis tracks responsiveness to priority 1, 2 and 3 calls each week. This measurement allows us to better evaluate overall client satisfaction. Priority 1 Call — issue is critical to the client, the Munis application or process is down. Priority 2 Call — issue is severe, but there is a work around the client can use. Priority 3 Call — issue is a non -severe support call from the client. Priority 4 Call — issue is non-critical for the client and they would like to work with Support as time permits. Following Up on Open Calls Some issues will not be resolved during the initial call with a Support Technician. If the call remains open, the technician will give you an open call number to reference, and will confirm the priority of the incident. If you want to follow up on an open call, simply call the appropriate Support Team and reference the call number to the Technician who answers or leave this information in your message. Referencing the open call number allows anyone in support to quickly follow up on the issue. You can also update the incident through TCP on Tyler's Web site (www.tylertech.com) and add a note requesting follow-up. Escalating a Support Call If the situation to be addressed by your open call has changed and you need to have the call priority adjusted, please call the appropriate Support Team and ask to be connected to the assigned technician. If that technician is unavailable, another technician on the team may be able to assist you, or will transfer you to the Product Support Team Manager. If you feel you are not receiving the service you need, please call the appropriate Product Manager and provide them with the open call number for which you need assistance. The Product Manager will follow up on your open issue and determine the necessary action to meet your needs. Technical Support Product Managers: Financials Team Michelle Madore (X4483) (michelle.madore@tylertech.com) PayrolUHR/Pension Team Sonja Johnson (sonja.johnson@tylertech.com) (X4157) Tax/Other Revenue/Utility Billing Steven Jones (steven.jones@tylertech.com) (X4255) Team OS/DBA Team Ben King (ben.king@tylertech.com) (X5464) TylerForms & Reporting Services Michele Violette (michele.violette@tylertech.com) (X4381) If you are unable to reach the Product Manager, please call CJ McCarron, Vice President of Technical Support at 800-772-2260, ext. 4124 (ci.mccarron(2tylertech.com). Resources A number of additional resources are available to you to provide a comprehensive and complete support experience. Munis Internet Updater (MIU): Allows you to download and install critical and high priority fixes as soon as they become available. Release Admin Console: Allows you to monitor and track the availability of all development activity for a particular release; right from inside Munis. Knowledgebase: A fully searchable depository of thousands of documents related to Munis processing, procedures, release info, helpful hints, etc. Remote Support Tool Some Support calls may require further analysis of your database or setup to diagnose a problem or to assist you with a question. GoToAssist® shares your desktop via the Internet to provide you with virtual on-site support. The GoToAssist tool from Citrix (www.citrix.com) provides a highly secure connection with 128 -bit, end-to- end AES encryption. Support is able to quickly connect to your desktop and view your site's setup, diagnose problems, or assist you with screen navigation. At the end of each GoToAssist session, there is a quick survey you should complete so we have accurate and up- to-date feedback on your Support experiences. We review the survey data in order to continually improve our Support services. E-mail Registration Clients can go to our Web site and register for e-mail "groups" based on specific Munis applications. We use these groups to inform clients of issues, and to distribute helpful technical tips and updated technical documentation. The survey information allows you to update your registration at any time, and you may unregister for one or more distribution lists at any time. Tyler Web site Once you have registered as a user on Tyler's Support Web site (www.tylertech.com), you have access to "Customer Tools" and other information such as online documentation, user forums, group training schedule/sign-up, and annual user conference updates/registration. Timely TCP Progress Updates Our technicians are committed to providing you timely updates on the progress of your open support incidents via the Tyler Client Portal. The frequency of these updates is determined by issue priority. Priority 1 Incidents — Daily updates (only if phone contact is not possible) Priority 2 Incidents — Weekly Updates Priority 3 Incidents — Bi -weekly Updates Priority 4 Incidents — Bi -weekly Updates Updates will also be provided for any issue, regardless of priority, when action items have been completed or when there is pertinent information to share. Exhibit 4 Business Travel Policy Summary Air Travel A. Reservations & Tickets Tyler's Travel Management Company (TMC) will provide an employee with a direct flight within two hours before or after the requested departure time, assuming that flight does not add more than three hours to the employee's total trip duration and the fare is within $100 (each way) of the lowest logical fare. If a net savings of $200 or more (each way) is possible through a connecting flight that is within two hours before or after the requested departure time and that does not add more than three hours to the employee's total trip duration, the connecting flight should be accepted. Employees are encouraged to make reservations far enough in advance to take full advantage of discount opportunities. A seven day advance booking requirement is mandatory. When booking less than seven days in advance, management approval will be required. Except in the case of international travel where a segment of continuous air travel is scheduled to exceed six hours, only economy or coach class seating is reimbursable. B. Baggage Fees Reimbursement of personal baggage charges are based on the trip duration as follows: • Up to five days = one checked bag • Six or more days = two checked bags Baggage fees for sports equipment are not reimbursable. Ground Transportation A. Private Automobile Mileage Allowance -Business use of an employee's private automobile will be reimbursed at the current IRS allowable rate, plus out of pocket costs for tolls and parking. Mileage will be calculated by using the employee's office as the starting and ending point, in compliance with IRS regulations. Employees who have been designated a home office should calculate miles from their home. B. Rental Car Employees are authorized to rent cars only in conjunction with air travel when cost, convenience and the specific situation require their use. When renting a car for Tyler business, employees should select a "mid- size" or "intermediate" car. "Full" size cars may be rented when three or more employees are traveling together. Tyler carries leased vehicle coverage for business car rentals; additional insurance on the rental agreement should be declined. C. Public Transportation Taxi or airport limousine services may be considered when traveling in and around cities or to and from airports when less expensive means of transportation are unavailable or impractical. The actual fare plus a reasonable tip (15-18%) are reimbursable. In the case of a free hotel shuttle to the airport, tips are included in the per diem rates and will not be reimbursed separately. D. Parking & Tolls When parking at the airport, employees must use longer term parking areas that are measured in days as opposed to hours. Park and fly options located near some airports may also be used. For extended trips that would result in excessive parking charges, public transportation to/from the airport should be considered. Tolls will be reimbursed when receipts are presented. Lodging Tyler's TMC will select hotel chains that are well established, reasonable in price and conveniently located in relation to the traveler's work assignment. Typical hotel chains include Courtyard, Fairfield Inn, Hampton Inn and Holiday Inn Express. If the employee has a discount rate with a local hotel, the hotel reservation should note that discount and the employee should confirm the lower rate with the hotel upon arrival. Employee memberships in travel clubs such as AAA should be noted in their travel profiles so that the employee can take advantage of any lower club rates. "No shows" or cancellation fees are not reimbursable if the employee does not comply with the hotel's cancellation policy. Tips for maids and other hotel staff are included in the per diem rate and are not reimbursed separately. 4. Meals and Incidental Expenses Employee meals and incidental expenses while on travel status are in accordance with the federal per diem rates published by the General Services Administration. Incidental expenses include tips to maids, hotel staff, and shuttle drivers and other minor travel expenses. Per diem rates range from $46 to $71. A complete listing is available at www.gsa.gov/perdiem. A. Overnight Travel For each full day of travel, all three meals are reimbursable. Per diems on the first and last day of a trip are governed as set forth below. Departure Day Depart before 12:00 noon Depart after 12:00 noon Return Day Return before 12:00 noon Return between 12:00 noon & 7:00 p.m Return after 7:00* p.m. Lunch and dinner Dinner Breakfast Breakfast and lunch Breakfast, lunch and dinner *7:00 is defined as direct travel time and does not include time taken to stop for dinner The reimbursement rates for individual meals are calculated as a percentage of the full day per diem as follows: • Breakfast 15% • Lunch 25% • Dinner 60% B. Same Day Travel Employees traveling at least 100 miles to a site and returning in the same day are eligible to claim lunch on an expense report. Employees on same day travel status are eligible to claim dinner in the event they return home after 7:00* p.m. *7:00 is defined as direct travel time and does not include time taken to stop for dinner Entertainment All entertainment expenses must have a business purpose; a business discussion must occur either before, after or during the event in order to qualify for reimbursement. The highest-ranking employee present at the meal must pay for and submit entertainment expenses. An employee who submits an entertainment expense for a meal or participates in a meal submitted by another employee cannot claim a per diem for that same meal. 6. Internet Access — Hotels and Airports Employees who travel may need to access their e-mail at night. Many hotels provide free high speed internet access and Tyler employees are encouraged to use such hotels whenever possible. If an employee's hotel charges for internet access it is reimbursable up to $10.00 per day. Charges for internet access at airports are not reimbursable. Effective Date: April 1, 2012 Exhibit 5 Adobe End User License Agreement ADOBE SYSTEMS INCORPORATED ADOBE CENTRAL OUTPUT SOFTWARE Software License Agreement NOTICE TO USER: THIS LICENSE AGREEMENT GOVERNS INSTALLATION AND USE OF THE ADOBE SOFTWARE DESCRIBED HEREIN BY LICENSEES OF SUCH SOFTWARE. INSTALLATION AND USE OF THE SOFTWARE IS NOT PERMITTED UNLESS ADOBE HAS GRANTED LICENSEE THE RIGHT TO DO SO AS SEPARATELY PROVIDED IN WRITING BY ADOBE. LICENSEE AGREES THAT THIS AGREEMENT IS LIKE ANY WRITTEN NEGOTIATED AGREEMENT SIGNED BY LICENSEE. BY CLICKING TO ACKNOWLEDGE AGREEMENT TO BE BOUND DURING REVIEW OF AN ELECTRONIC VERSION OF THIS LICENSE, OR DOWNLOADING, COPYING, INSTALLING OR USING THE SOFTWARE, LICENSEE ACCEPTS ALL THE TERMS AND CONDITIONS OF THIS AGREEMENT. THIS AGREEMENT IS ENFORCEABLE AGAINST ANY PERSON OR ENTITY THAT INSTALLS AND USES THE SOFTWARE AND ANY PERSON OR ENTITY (E.G., SYSTEM INTEGRATOR, CONSULTANT OR CONTRACTOR) THAT INSTALLS OR USES THE SOFTWARE ON ANOTHER PERSON'S OR ENTITY'S BEHALF. LICENSEE'S RIGHTS UNDER THIS AGREEMENT MAY BE SUBJECT TO ADDITIONAL TERMS AND CONDITIONS IN A SEPARATE WRITTEN AGREEMENT WITH ADOBE THAT SUPPLEMENTS OR SUPERSEDES ALL OR PORTIONS OF THIS AGREEMENT. Definitions 1.1 "Adobe" means Adobe Systems Incorporated, a Delaware corporation, 345 Park Avenue, San Jose, California 95110, if subsection 9(a) of this Agreement applies; otherwise it means Adobe Systems Software Ireland Limited, 4-6 Riverwalk, Citywest Business Campus, Saggart, Dublin 24, Ireland, a company organized under the laws of Ireland and an affiliate and licensee of Adobe Systems Incorporated. 1.2 "Authorized Users" means employees and individual contractors (i.e., temporary employees) of Licensee. 1.3 "Computer" means one or more central processing units ("CPU") in a hardware device (including hardware devices accessed by multiple users through a network ("Server")) that accepts information in digital or similar form and manipulates it for a specific result based on a sequence of instructions. 1.4 "Deliver" means to transmit data directly or indirectly over a network to a printing device or any other device for the purpose of printing. 1.5 "Development Software" means Software licensed for use in a technical environment solely for internal development and testing and not for use as Production Software. 1.6 "Disaster Recovery Environment" means Licensee's technical environment designed solely to allow Licensee to respond to an interruption in service due to an event beyond Licensee's control that creates an inability on Licensee's part to provide critical business functions for a material period of time. 1.7 "Documentation" means the user manuals and/or technical publications as applicable, relating to installation, use and administration of the Software. 1.8 "Internal Network" means Licensee's private, proprietary network resource accessible only by Authorized Users. "Internal Network" specifically excludes the Internet (as such term is commonly defined) or any other network community open to the public, including membership or subscription driven groups, associations or similar organizations. Connection by secure links such as VPN or dial up to Licensee's Internal Network for the purpose of allowing Authorized Users to use the Software should be deemed use over an Internal Network. 1.9 "License Metric" means each of the per-unit metrics used by Adobe in connection with the licensed quantities identified as separately provided in writing by Adobe to describe the scope of Licensee's right to use the Software. One or more of the following types of License Metrics applies to each Software Product as further provided herein: (a) Per -Computer. Licensee may install and use the Adobe Output Designer software on no more than the licensed number of Computers. (b) Per -User. The total number of Authorized Users that directly or indirectly request or receive content that has been processed by the Software may not exceed the licensed quantity of users. (c) Per -Server. The total number of Servers on which the Software is installed may not exceed the licensed quantity of Servers. 1.10 "Location" means a specific building or physical location as identified by its unique street address. 1.11 "Production Software" means Software licensed for productive business use. 1.12 "SDK Components" means the sample software code, application programming interface, header files and related information, and the file format specifications, if any, included as part of the Software as described in the Documentation or a "Read Me" file accompanying the applicable Software. 1.13 "Software" means the object code version of the software program(s) specified in a separate written agreement signed by Adobe, including all Documentation and other materials provided by Adobe to Licensee under this Agreement. The term "Software Product" may also be used to indicate a particular product, and otherwise has the same meaning as Software. 2. License. Subject to the terms and conditions of this Agreement, Adobe grants to Licensee a perpetual, non-exclusive license to install and use the Software delivered hereunder according to the terms and conditions of this Agreement, on Computers connected to Licensee's Internal Network, on the licensed platforms and configurations, in the manner and for the purposes described in the Documentation. The following additional terms also apply to Licensee's use of the Software. 2.1 License Metric. Licensee's right to install and use the Software is limited based on whether the Software is licensed as Production Software or Development Software (as separately provided in writing by Adobe) and the License Metrics applicable to the particular Software Products licensed (as separately provided in writing by Adobe) and subject to the terms in Section 3, unless Licensee has licensed the Software for evaluation purposes, in which case the terms of Section 4 apply. 2.2 SDK Components. Licensee's Authorized Users may install and use the SDK Components for purposes of facilitating use of the Software in accordance with this Agreement. Licensee agrees that Licensee will treat the API Information with the same degree of care to prevent unauthorized disclosure to anyone other than Authorized Users as Licensee accords to Licensee's own confidential information, but in no event less than reasonable care. Licensee's obligations under this Section 2.2 with respect to the API Information shall terminate when Licensee can document that the API Information was in the public domain at or subsequent to the time it was communicated to Licensee by Adobe through no fault of Licensee's. Licensee may also disclose the API Information in response to a valid order by a court or other governmental body, when otherwise required by law, or when necessary to establish the rights of either party under this Agreement, provided Licensee gives Adobe advance written notice thereof. 2.3 Backup and Disaster Recover. Licensee may make and install a reasonable number of copies of the Software for backup and archival purposes and use such copies solely in the event that the primary copy has failed or is destroyed, but in no event may Licensee use such copies concurrently with Production Software or Development Software. Licensee may also install copies of the Software in a Disaster Recovery Environment for use solely in disaster recovery and nor for production, development, evaluation or testing purposes other than to ensure that the Software is capable of replacing the primary usage of the Software in case of a disaster. 2.4 Documentation. Licensee may make copies of the Documentation for use by Authorized Users in connection with use of the Software in accordance with this Agreement, but no more than the amount reasonably necessary. Any permitted copy of the Documentation that Licensee makes must contain the same copyright and other proprietary notices that appear on or in the Documentation. 2.5 Outsourcing. Licensee may sub -license use of the Software to a third party outsourcing or facilities management contractor to operate the Software on Licensee's behalf, provided that (a) Licensee provides Adobe with prior written notice; (b) Licensee is responsible for ensuring that any such contractor agrees to abide by and fully complies with the terms of this Agreement as they relate to the use of the Software on the same basis as applies to Licensee; (c) such use is only in relation to Licensee's direct beneficial business purposes as restricted herein; (d) such use does not represent or constitute an increase in the scope or number of licenses provided hereunder; and (e) Licensee shall remain fully liable for any and all acts or omissions by the contractor related to this Agreement. 2.6 Font Software. If the Software includes font software, then Licensee may (a) use the font software on Licensee's Computers in connection with Licensee's use of the Software as permitted under this Agreement; (b) output such font software on any output devices connected to Licensee's Computers; (c) convert and install the font software into another format for use in other environments provided that use of the converted font software may not be distributed or transferred for any purpose except in accordance with the transfer section in this Agreement; and (d) embed copies of the font software into Licensee's electronic documents for the purpose of printing and viewing the document, provided that if the font software Licensee is embedding is identified as "licensed for editable embedding" on Adobe's website at http://www.adobe.com/type/browser/legal/embeddingeula.html, Licensee may also embed copies of that font software for the additional limited purpose of editing Licensee's electronic documents. 2.7 Restrictions (a) No Modifications, No Reverse Engineering. Licensee shall not modify, port, adapt or translate the Software. Licensee shall not reverse engineer, decompile, disassemble or otherwise attempt to discover the source code of the Software. Notwithstanding the foregoing, decompiling the Software is permitted to the extent the laws of Licensee's jurisdiction give Licensee the right to do so to obtain information necessary to render the Software interoperable with other software; provided, however, that Licensee must first request such information from Adobe and Adobe may, in its discretion, either provide such information to Licensee or impose reasonable conditions, including a reasonable fee, on such use of the source code to ensure that Adobe's and its suppliers' proprietary rights in the source code for the Software are protected. (b) No Unbundling. The Software may include various applications, utilities and components, may support multiple platforms and languages and may be provided to Licensee on multiple media or in multiple copies. Nonetheless, the Software is designed and provided to Licensee as a single product to be used as a single product on Computers and platforms as permitted herein. Licensee is not required to use all component parts of the Software, but Licensee shall not unbundle the component parts of the Software for use on different Computers. Licensee shall not unbundle or repackage the Software for distribution, transfer or resale. (c) No Transfer. Licensee shall not sublicense, assign or transfer the Software or Licensee's rights in the Software, or authorize any portion of the Software to be copied onto or accessed from another individual's or entity's Computer except as may be explicitly provided in this Agreement. Notwithstanding anything to the contrary in this Section 2.7(c), Licensee may transfer copies of the Software installed on one of Licensee's Computers to another one of Licensee's Computers provided that the resulting installation and use of the Software is in accordance with the terms of this Agreement and does not cause Licensee to exceed Licensee's right to use the Software under this Agreement. (d) Prohibited Use. Except as expressly authorized under this Agreement, Licensee is prohibited from: (i) using the Software on behalf of third parties; (ii) renting, leasing, lending or granting other rights in the Software including rights on a membership or subscription basis; and (iii) providing use of the Software in a computer service business, third party outsourcing facility or service, service bureau arrangement, network, or time sharing basis. (e) Export Rules. Licensee agrees that the Software will not be shipped, transferred or exported into any country or used in any manner prohibited by the United States Export Administration Act or any other export laws, restrictions or regulations (collectively the "Export Laws"). In addition, if the Software is identified as an export controlled item under the Export Laws, Licensee represents and warrants that Licensee is not a citizen of, or located within, an embargoed or otherwise restricted nation (including Iran, Iraq, Syria, Sudan, Libya, Cuba and North Korea) and that Licensee is not otherwise prohibited under the Export Laws from receiving the Software. All rights to install and use the Software are granted on condition that such rights are forfeited if Licensee fails to comply with the terms of this Agreement. License Metrics and Limitations. 3.1 Adobe Central Output Server. If Licensee has licensed Adobe Central Output Server as Production Software or Development Software (as separately provided in writing by Adobe), then Adobe grants Licensee a license to install and use Adobe Central Output Server on a Per -Server basis, provided that Licensee is not permitted to Deliver output from the Production Software to more than ten (10) Locations per licensed Server. 3.2 Adobe Central Pro Output Server. If Licensee has licensed Adobe Central Pro Output Server, then Adobe grants Licensee a license to install and use Adobe Central Pro Output Server either (a) as Production Software on a Per -Server or Per -User basis (as separately provided in writing by Adobe), or (b) as Development Software on a Per -Server basis. When Adobe Central Pro Output Server is licensed as Production Software on a Per -Server basis, Licensee is not permitted to Deliver output from the Software Product to more than ten (10) Locations per licensed Server. 3.3 Adobe Output Pak for mySAP.com. If Licensee has licensed Adobe Output Pak for mySAP.com, then Adobe grants Licensee a license to install and use Adobe Output Pak for mySAP.com solely in connection with Adobe Central Pro Output Server for use with SAP software either (a) as Production Software on a Per -Server or Per -User basis (as separately provided in writing by Adobe), or (b) as Development Software on a Per -Server basis. Licensee's license to Adobe Output Pak for mySAP.com includes a license to install and use Adobe Central Pro Output Server subject to the terms of Section 3.2 of this Agreement. The following additional terms apply: 3.3.1 Per -Server License. If Licensee has licensed Adobe Output Pak for mySAP.com on a Per - Server basis, Licensee shall have the right to install and use Adobe Central Pro Output Server on one (1) Server unless Licensee obtains additional Per -Server licenses to the Adobe Central Pro Output Server. 3.3.2 Per -User License. If Licensee has licensed Adobe Output Pak for mySAP.com software on a Per -User basis, Licensee must obtain a number of Per -User licenses of Adobe Output Pak for mySAP.com not less than the number of Authorized Users who are authorized to access or use the SAP software. 3.4 Adobe Central Output Server Workstation Edition. If Licensee has licensed Adobe Central Output Server Workstation Edition, then Adobe grants Licensee a license to install and use Adobe Central Output Server Workstation Edition as Production Software on a Per -Computer basis. Licensee's use of the Adobe Central Output Server Workstation Edition shall be limited to use directly or indirectly initiated by an individual person (not an automated process) for the sole purpose of delivering output that has been processed by the Adobe Central Output Server Workstation Edition software to the person that initiated such use. 3.5 Adobe Output Designer. If Licensee has licensed Adobe Output Designer, then Adobe grants Licensee a license to install and use Adobe Output Designer as Production Software on a Per -Computer basis subject to the following additional terms: 3.5.1 Network Use. As an alternative to installing and using the Adobe Output Designer software on the Computer of each licensed Authorized User, Licensee may install and use the Adobe Output Designer software on a file server for the purpose of (a) permitting Authorized Users to download the software for installation and use on no more than the licensed number of Computers connected to Licensee's Internal Network, or (b) permitting Authorized Users to use the software using commands, data or instructions from a Computer connected to Licensee's Internal Network provided that the total number (not the concurrent number) of Authorized Users that use the software does not exceed one user for each of the licensed number of Computers. No other network use is permitted. 3.5.2 Limitation. Licensee shall be prohibited from using the templates, forms and other materials created using the Adobe Output Designer software with any software other than Adobe software. 3.6 Development Software License. This Section 3.6 applies only if Licensee has obtained a valid Development Software license to a Software Product. In addition to the other terms contained herein, Licensee's license to the Development Software is limited to use in Licensee's technical environment strictly for testing and development purposes and not for production purposes. Licensee may (a) install the Development Software on Servers connected to Licensee's Internal Network provided that the total number of Computers used to operate the Development Software does not exceed the licensed amount, and (b) permit Authorized Users to use the Development Software in accordance with this Agreement. 4. Evaluation of Software Products. This Section 4 applies only if Licensee has obtained a valid license to evaluate Software Products as separately provided in writing by Adobe or as indicated by the serial number Licensee enters upon installation. 4.1 License. In addition to the other terms contained herein, Licensee's license to evaluate any Software Product is limited to use strictly for Licensee's own internal evaluation purposes and not for production purposes, and is further limited to a period not to exceed sixty (60) days from the date Licensee obtains the Software Products. Licensee may (a) install the Software Products on one (1) Computer connected to Licensee's Internal Network, and (b) permit Authorized Users to use the Software Products to deliver content within Licensee's Internal Network. Licensee's rights with respect to the Software Products are further limited as described in Section 4.2. 4.2 Limitations. Licensee's rights to install and use Software Products under this Section 4 will terminate immediately upon the earlier of (a) the expiration of the evaluation period described herein, or (b) such time that Licensee purchases a license to a non -evaluation version of such Software Products. Adobe reserves the right to terminate Licensee's license to evaluate Software Products at any time in its sole discretion. Licensee agrees to return or destroy Licensee's copy of the Software Products upon termination of this Agreement for any reason. To the extent that any provision in this Section 4 is in conflict with any other term or condition in this Agreement, this Section 4 shall supersede such other term(s) and condition(s) with respect to the evaluation of Software Products, but only to the extent necessary to resolve the conflict. ADOBE IS LICENSING THE SOFTWARE PRODUCTS FOR EVALUATION ON AN "AS IS" BASIS AT LICENSEE'S OWN RISK. SEE SECTIONS 7 AND 8 FOR WARRANTY DISCLAIMERS AND LIABILITY LIMITATIONS WHICH GOVERN EVALUATION OF SOFTWARE PRODUCTS. 5. Intellectual Property Rights. The Software and any copies that Licensee is authorized by Adobe to make are the intellectual property of and are owned by Adobe Systems Incorporated and its suppliers. The structure, organization and code of the Software are the valuable trade secrets and confidential information of Adobe Systems Incorporated and its suppliers. The Software is protected by copyright, including without limitation by United States Copyright Law, international treaty provisions and applicable laws in the country in which it is being used. Except as expressly stated herein, this Agreement does not grant Licensee any intellectual property rights in the Software and all rights not expressly granted are reserved by Adobe. 6. Updates. If the Software is an upgrade or update to a previous version of the Software, Licensee must possess a valid license to such previous version in order to use such upgrade or update. All upgrades and updates are provided to Licensee on a license exchange basis. Licensee agrees that by using an upgrade or update Licensee voluntarily terminates Licensee's right to use any previous version of the Software. As an exception, Licensee may continue to use previous versions of the Software on Licensee's Computer after Licensee uses the upgrade or update but only to assist Licensee in the transition to the upgrade or update, provided that the upgrade or update and the previous versions are installed on the same computer. Upgrades and updates may be licensed to Licensee by Adobe with additional or different terms. 7. WARRANTY 7.1. Warranty. Adobe warrants to Licensee that the Software will perform substantially in accordance with the Documentation for the ninety (90) day period following shipment of the Software when used on the recommended operating system, platform and hardware configuration. This limited warranty does not apply to evaluation software (as indicated in Section 4), patches, sample code, sample files and font software converted into other formats. All warranty claims must be made within such ninety (90) day period. If the Software does not perform substantially in accordance with the Documentation, the entire liability of Adobe and Licensee's exclusive remedy shall be limited to either, at Adobe's option, the replacement of the Software or the refund of the license fee paid to Adobe for the Software. 7.2 DISCLAIMER. THE FOREGOING LIMITED WARRANTY IS THE ONLY WARRANTY MADE BY ADOBE AND STATES THE SOLE AND EXCLUSIVE REMEDIES FOR ADOBE'S, ITS AFFILIATES' OR ITS SUPPLIERS' BREACH OF WARRANTY. EXCEPT FOR THE FOREGOING LIMITED WARRANTY, AND FOR ANY WARRANTY, CONDITION, REPRESENTATION OR TERM TO THE EXTENT TO WHICH THE SAME CANNOT OR MAY NOT BE EXCLUDED OR LIMITED BY LAW APPLICABLE IN LICENSEE'S JURISDICTION, ADOBE, ITS AFFILIATES AND ITS SUPPLIERS PROVIDE THE SOFTWARE AS -IS AND WITH ALL FAULTS AND EXPRESSLY DISCLAIM ALL OTHER WARRANTIES, CONDITIONS, REPRESENTATIONS OR TERMS, EXPRESS OR IMPLIED, WHETHER BY STATUTE, COMMON LAW, CUSTOM, USAGE OR OTHERWISE AS TO ANY OTHER MATTERS, INCLUDING PERFORMANCE, SECURITY, NON -INFRINGEMENT OF THIRD PARTY RIGHTS, INTEGRATION, MERCHANTABILITY, QUIET ENJOYMENT, SATISFACTORY QUALITY OR FITNESS FOR ANY PARTICULAR PURPOSE. 8. LIMITATION OF LIABILITY. EXCEPT FOR THE EXCLUSIVE REMEDY SET FORTH ABOVE AND AS OTHERWISE PROVIDED IN SECTION 4, IN NO EVENT WILL ADOBE, ITS AFFILIATES OR ITS SUPPLIERS BE LIABLE TO LICENSEE FOR ANY LOSS, DAMAGES, CLAIMS OR COSTS WHATSOEVER INCLUDING ANY CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES, ANY LOST PROFITS OR LOST SAVINGS, ANY DAMAGES RESULTING FROM BUSINESS INTERRUPTION, PERSONAL INJURY OR FAILURE TO MEET ANY DUTY OF CARE, OR CLAIMS BY A THIRD PARTY EVEN IF AN ADOBE REPRESENTATIVE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS, DAMAGES, CLAIMS OR COSTS. THE FOREGOING LIMITATIONS AND EXCLUSIONS APPLY TO THE EXTENT PERMITTED BY APPLICABLE LAW IN LICENSEE'S JURISDICTION. ADOBE'S AGGREGATE LIABILITY AND THAT OF ITS AFFILIATES AND SUPPLIERS UNDER OR IN CONNECTION WITH THIS AGREEMENT SHALL BE LIMITED TO THE AMOUNT PAID FOR THE SOFTWARE, IF ANY. THIS LIMITATION WILL APPLY EVEN IN THE EVENT OF A FUNDAMENTAL OR MATERIAL BREACH OR A BREACH OF THE FUNDAMENTAL OR MATERIAL TERMS OF THIS AGREEMENT. Nothing contained in this Agreement limits Adobe's liability to Licensee in the event of death or personal injury resulting from Adobe's negligence or for the tort of deceit (fraud). Adobe is acting on behalf of its affiliates and suppliers for the purpose of disclaiming, excluding and limiting obligations, warranties and liability, but in no other respects and for no other purpose. For further information, please see the jurisdiction specific information at the end of this agreement, if any, or contact Adobe's Customer Support Department. 9. Governing Law. This Agreement, each transaction entered into hereunder, and all matters arising from or related to this Agreement (including its validity and interpretation), will be governed and enforced by and construed in accordance with the substantive laws in force in: (a) the State of California, if a license to the Software is purchased when Licensee is in the United States, Canada, or Mexico; or (b) Japan, if a license to the Software is purchased when Licensee is in Japan, China, Korea, or other Southeast Asian country where all official languages are written in either an ideographic script (e.g., hanzi, kanji, or hanja), and/or other script based upon or similar in structure to an ideographic script, such as hangul or kana; or (c) England, if a license to the Software is purchased when Licensee is in any other jurisdiction not described above. The respective courts of Santa Clara County, California when California law applies, Tokyo District Court in Japan, when Japanese law applies, and the competent courts of London, England, when the law of England applies, shall each have non-exclusive jurisdiction over all disputes relating to this Agreement. This Agreement will not be governed by the conflict of law rules of any jurisdiction or the United Nations Convention on Contracts for the International Sale of Goods, the application of which is expressly excluded. 10. General Provisions. If any part of this Agreement is found void and unenforceable, it will not affect the validity of the balance of this Agreement, which shall remain valid and enforceable according to its terms. Updates may be licensed to Licensee by Adobe with additional or different terms. The English version of this Agreement shall be the version used when interpreting or construing this Agreement. This is the entire agreement between Adobe and Licensee relating to the Software and it supersedes any prior representations, discussions, undertakings, communications or advertising relating to the Software. 11. Notice to U.S. Government End Users. 11.1 Commercial Items. The Software and Documentation are "Commercial Item(s)," as that term is defined at 48 C.F.R. Section 2.101, consisting of "Commercial Computer Software" and "Commercial Computer Software Documentation," as such terms are used in 48 C.F.R. Section 12.212 or 48 C.F.R. Section 227.7202, as applicable. Consistent with 48 C.F.R. Section 12.212 or 48 C.F.R. Sections 227.7202-1 through 227.7202-4, as applicable, the Commercial Computer Software and Commercial Computer Software Documentation are being licensed to U.S. Government end users (a) only as Commercial Items and (b) with only those rights as are granted to all other end users pursuant to the terms and conditions herein. Unpublished -rights reserved under the copyright laws of the United States. Adobe Systems Incorporated, 345 Park Avenue, San Jose, CA 95110-2704. 11.2 U.S. Government Licensing of Adobe Technology. Licensee agrees that when licensing Adobe Software for acquisition by the U.S. Government, or any contractor therefore, Licensee will license consistent with the policies set forth in 48 C.F.R. Section 12.212 (for civilian agencies) and 48 C.F.R. Sections 227-7202-1 and 227-7202-4 (for the Department of Defense). For U.S. Government End Users, Adobe agrees to comply with all applicable equal opportunity laws including, if appropriate, the provisions of Executive Order 11246, as amended, Section 402 of the Vietnam Era Veterans Readjustment Assistance Act of 1974 (38 USC 4212), and Section 503 of the Rehabilitation Act of 1973, as amended, and the regulations at 41 CFR Parts 60-1 through 60-60, 60-250, and 60-741. The affirmative action clause and regulations contained in the preceding sentence shall be incorporated by reference in this Agreement. 12. Compliance with Licenses. Adobe may, at its expense, and no more than once every twelve (12) months, appoint its own personnel or an independent third party to verify the number of copies and installations, as well as usage of the Adobe software by Licensee. Any such verification shall be conducted upon seven (7) business days notice, during regular business hours at Licensee's offices and shall not unreasonably interfere with Licensee's business activities. Both Adobe and its auditors shall execute a commercially reasonable non- disclosure agreement with Licensee before proceeding with the verification. If such verification shows that Licensee is using a greater number of copies of the Software than that legitimately licensed, or are deploying or using the Software in any way not permitted under this Agreement and which would require additional license fees, Licensee shall pay the applicable fees for such additional copies within thirty (30) days of invoice date, with such underpaid fees being the license fees as per Adobe's then -current, country specific, license fee list. If underpaid fees are in excess of five percent (5%) of the value of the fees paid under this Agreement, then Licensee shall pay such underpaid fees and Adobe's reasonable costs of conducting the verification. 13. Third -Party Beneficiary. Licensee acknowledges and agrees that Adobe's licensors (and/or Adobe if Licensee obtained the Software from any party other than Adobe) are third party beneficiaries of this Agreement, with the right to enforce the obligations set forth herein with respect to the respective technology of such licensors and/or Adobe. Adobe is either a registered trademark or trademark of Adobe Systems Incorporated in the United States and/or other countries. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth below. Tyler Technologies, Inc. City of Round Rock, Texas ERP and Schools Division By: By: Name: Name: Title: Title: Date: Date: ROUND ROCK, TEXAS City Council Agenda Summary Sheet PURPOSE. PASSION. PROSPERITY. Agenda Item No. H1. Consider a resolution authorizing the Mayor to execute an agreement with Tyler Technologies to license certain Financial, Human Resources, and Payroll Administrative Agenda Caption: software. Meeting Date: December 20, 2012 Department: Information Technology Staff Person making presentation: Brooks Bennett Chief Information Officer Item Summary: In order to modernize business processes, the City of Round Rock seeks to implement an Enterprise Resource Planning (ERP) system. This system is designed to enhance our financial and procurement workflows as well as tightly integrate with our human resource tasks, among other things. Rather than continuing to maintain and pay software maintenance and support fees on disparate systems, the City seeks to procure the Munis product from Tyler Technologies. The City will also retain Tyler Technologies' services in migrating existing, relevant data and setting up new business processes in the system. This product will allow the City to further enhance our strategic goal of being a financially sound City providing high value services. Many paper processes will be replaced by electronic workflows with the goal of enhancing the speed and accuracy of City business. Through this project, the City will move to a software as a service (SaaS) platform, which is sometimes referred to as cloud hosting. All hardware will be maintained 24/7/365 by Tyler at their data centers. This reduces the requirement for the City of Round Rock to make substantial capital investments in hardware and software and reduces City staffing necessary to monitor and support the system. This contract is good for seven years with a total cost of $2,061,867.00 over the life of the contract. The estimated $619,191.00 cost for the first year includes implementation and travel as well as hosting and support, and will be funded through general self -financed construction funds. The remaining $1,442,676.00 will be paid in equal installments of $240,446.00 per year for hosting and support over the final six years and will be funded out of the general fund. Cost: $2,061,867.00 Source of Funds: General Self -Financed Construction Recommended Action: Approval L:Lj � z 3 r � z LLJ O u X °C u O w0 o � CITY OF ROUND ROCK "SOFTWARE AS A SERVICE" AGREEMENT WITH TYLER TECHNOLOGIES, INC. This "Software as a Service" agreement (hereinafter referred to as the "SaaS Agreement" or the "Agreement") is made on the 1606 day of the month of '�((',(�NlO,�Q,� , 20LL(hereinafter referred to as the "Effective Date") by and between Tyler Technologies, Inc., a Delaware corporation with offices located at I Cole Haan Drive, Yarmouth, Maine 04096 (hereinafter referred to as "Tyler") and the City of Round Rock, Texas, a home -rule municipality with offices located at 221 East Main Street, Round Rock, Texas 78664 (hereinafter referred to as the "Client" or the "City"). WHEREAS Client desires to license certain Financials, Human Resource, and Payroll Administrative Software (hereinafter referred to as the "System"); and WHEREAS Tyler is in the business of providing the type of software Client intends to obtain; and WHEREAS Client, by signature on this Agreement, is awarding Tyler the contract for furnishing, delivering, installing, and implementing the specified System; NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and promises set forth herein, which consideration is declared good and sufficient by both parties, Tyler and Client agree that Tyler shall provide certain products and services, and Client shall pay the prices agreed therefor, in accordance with the requirements and conditions set forth in this Agreement. This Agreement consists of the following sections and exhibits, each of which is attached hereto and incorporated by reference as though recited herein verbatim: SECTION A: Software License SECTION B: Professional Services SECTION C: Maintenance SECTION D: Third Party Products SECTION E: Software as a Service SECTION F: General Terms and Conditions EXHIBIT 1: Investment Summary EXHIBIT 2: Service Level Agreement EXHIBIT 3: Support Call Process EXHIBIT 4: Business Travel Policy Summary EXHIBIT 5: Adobe End User License Agreement EXHIBIT 6: Tyler's Written Proposal dated December 3, 2012, in response to City's Request for Information SECTION A: SOFTWARE LICENSE 1. Grant of License. a) Upon the Effective Date hereof, Tyler hereby grants to Client a non-exclusive, non -transferable, royalty -free, revocable license to use the Tyler software products set forth in the Investment Summary attached hereto as Exhibit 1, along with related interfaces (collectively hereinafter referred to as the "Tyler Software Products"), and additionally along with Tyler user guides provided in or with the Tyler Software Products (hereinafter referred to as the "User Guides"), all such software and materials to be used for Client's internal business purposes only, and all such software and materials to be subject to the terms and conditions of this Agreement. This grant of license is contingent upon Client remitting payment of fees as and when required under this Agreement. TYLER HAS THE RIGHT TO REVOKE THIS LICENSE IF CLIENT TERMINATES, CANCELS OR FAILS TO RENEW THIS SaaS AGREEMENT. TYLER HAS THE RIGHT TO REVOKE THIS LICENSE IF CLIENT FAILS TO REMIT ANY REQUIRED SaaS FEES IN ACCORDANCE WITH THIS AGREEMENT AND THE TEXAS PROMPT PAYMENT ACT AS DELINEATED HEREIN, FOLLOWING THIRTY (30) DAYS' WRITTEN NOTICE TO CLIENT OF TYLER'S INTENT TO REVOKE THE LICENSE. b) Tyler shall retain ownership of the Tyler Software Products and User Guides, including all intellectual property rights in and to same. The Tyler Software Products are not licensed to perform functions or processing for subdivisions or entities that were not disclosed to Tyler prior to the Effective Date hereof. c) Client acknowledges and agrees that the Tyler Software Products and User Guides are proprietary to Tyler and have been developed as trade secrets at Tyler's expense. Client shall use reasonable efforts to keep the Tyler Software Products and User Guides confidential and to prevent any misuse, unauthorized use or unauthorized disclosure of the Tyler Software Products or User Guides by any party under City's authority or control. d) The Tyler Software Products may not be modified by anyone other than Tyler. If an objective determination is made that Client modified the Tyler Software Products without Tyler's prior written consent, then Tyler's obligations to provide maintenance services on the Tyler Software Products shall be voided, and the warranty for the Tyler Software Products shall be voided. Client shall not perform dc -compilation, disassembly, translation or other reverse engineering on the Tyler Software Products. e) Client may make copies of the Tyler Software Products for testing, disaster recovery, and archive purposes only. Client shall repeat any and all proprietary notices on any copy of the Tyler Software Products. Client may make copies of the Tyler User Guides for internal use only. f) In the event Client acquires from Tyler any edition of Tyler Content Manager software other than Enterprise Edition, the license for Content Manger is restricted to use with Tyler applications only. If Client wishes to use Tyler Content Management software with non -Tyler applications, Client must purchase or upgrade to Tyler Content Manager Enterprise Edition. 2. License Fees. Client agrees to pay Tyler, and Tyler agrees to accept from Client as payment in full for the license granted herein, the software fees set forth in the Investment Summary attached hereto as Exhibit 1. 3. Limited Warranty. For the purposes of this Agreement, a "Defect" is defined as a failure of the Tyler Software Products to substantially conform to the then -current Tyler User Guides and the functional descriptions of the Tyler Software Products in Tyler's written proposal to Client. In the event of a substantive conflict between those documents, the then -current Tyler User Guides will control. A Tyler Software Product is "Defective" if it contains a Defect. For as long as this current SaaS Agreement is in effect, Tyler warrants that the Tyler Software Products will not contain Defects. If the Tyler Software Products do not perform as warranted, Tyler will use reasonable efforts, consistent with industry standards, to cure the Defect in accordance with Tyler's then -current support call process. Tyler's current support call process is set forth herein in Exhibit 3. 4. Intellectual Property Infringement Indemnification. a) Tyler's Obligations. Tyler shall defend and indemnify Client against any claim by an unaffiliated third party that a Tyler Software Product, if used within the scope of this Agreement, directly infringes that party's registered United States patent, copyright or trademark issued and existing as of the Effective Date or as of the distribution date of a release to the Tyler Software Product, and Tyler will promptly pay the amount of any resulting adverse final judgment issued by a court of competent jurisdiction or of any settlement made by Tyler in writing. b) Client's Obligations. Tyler's obligations under this Section A/Subsection 4 are contingent upon Client performing all of the following in connection with any claim as described herein: Promptly notifying Tyler in writing of any such claim; ii. Giving Tyler reasonable cooperation, information, and assistance in connection with the claim; and iii. Consenting to Tyler's sole control and authority with respect to the defense, settlement or compromise of the claim. c) Exceptions to Tyler's Obligations. Tyler will have no liability hereunder if the claim of infringement or an adverse final judgment rendered by a court of competent jurisdiction results from: Client's use of a previous version of a Tyler Software Product, and the claim would have been avoided had Client used the most -current version of the Tyler Software Product made available to the Client; ii. Client's combining the Tyler Software Product with devices or products not provided or recommended by Tyler; iii. Client's use of a Tyler Software Product in applications, business environments or processes for which the Tyler Software Product was not designed or contemplated, and where use of the Tyler Software Product outside such application, environment or business process would not have given rise to the claim; iv. Corrections, modifications, alterations or enhancements made by Client to the Tyler Software Product, and such correction, modification, alteration or enhancement is determined by a court of competent jurisdiction to be a contributing cause of the infringement; V. Use of the Tyler Software Product by any person or entity other than Client or Client's employees; or vi. Client's willful infringement, including Client's continued use of the infringing Tyler Software Product after Client becomes aware that such infringing Tyler Software Product is or is likely to become the subject of a claim hereunder. d) Remedy. In the event a Tyler Software Product is finally determined by a court of competent jurisdiction to be infringing, and its use by Client is enjoined, Tyler will at its election: (a) Procure for Client the right to continue using the infringing Tyler Software Product; (b) Modify or replace the infringing Tyler Software Product so that it becomes non -infringing; or, if Section A/Subsection 4(d)(i)(a) and Section A/Subsection 4(d)(i)(b) are not accomplished by Tyler: (c) Terminate Client's license for the infringing Tyler Software Product and refund to Client the SaaS fees paid for the infringing Tyler Software Product, as depreciated on a straight-line basis over a three (3) year period commencing on the Effective Date. ii. The foregoing states Tyler's entire liability and Client's sole and exclusive remedy with respect to the subject matter hereof. SECTION B: PROFESSIONAL SERVICES 1. Services. Tyler shall provide the services set forth in the Investment Summary at Client's election, including consulting, training, conversion, and other miscellaneous services. Tyler will he available for a kick-off meeting within forty-five (45) days of contract execution. The Project Plan for Phase I will be created within thirty (30) days following the conclusion of the kick-off meeting. Tyler and Client shall schedule status calls for the project to occur no less than once every two weeks. 2. Expenses. Tyler will invoice Client for expenses in accordance with the then -current Tyler Business Travel Policy. Copies of receipts will be promptly provided, on an exception basis, upon City's request at no charge. An administrative fee of $25.00 per week of onsite services will be charged if CIient requires receipts for all non -per diem expenses. Receipts for mileage and miscellaneous items less than five dollars ($5) shall not be required to be made available. 3. Additional Services. a) Training and/or consulting services utilized in excess of those set forth in the Investment Summary, and additional related services not set forth in the Investment Summary, will be billed at Tyler's then -current rates for said services. b) Programming and/or interface quotes are estimates based upon Tyler's understanding of the specifications supplied by Client. In the event Client requires additional work performed above the specifications provided, Tyler will submit to Client an amendment containing an estimate of the charges for the additional work. Client will have thirty (30) calendar days from the date the estimate is provided to approve the amendment. No additional work shall be undertaken or performed by Tyler without the express prior written authorization of Client. 4. ERP System Acceptance. a) Conditional Acceptance Upon Tyler's notification to Client that Tyler has completed the installation of the any one or more modules comprising the ERP System (such ERP System being comprised of the Tyler Software Products licensed to Client pursuant to this Agreement), and that such Software modules are ready for testing, Client shall begin testing such Software modules in a non- production environment using mutually agreed-upon testing procedures to determine whether each Software module meets, in all material respects, the applicable requirements and warranties set forth in the Agreement, in the Project Plan and in such other criteria as are mutually agreed-upon in writing. Client shall have up to forty-five (45) days to complete the non -production testing for a Software module. After Client has completed such non -production testing for a Software module that performs as provided for in this Agreement and the other recited documents, Client shall notify Tyler in writing that "Conditional Acceptance" of such Software module(s) has occurred. If Client and Tyler determine that a Software module does not perform as provided for in this Agreement and the other recited documents, then Client shall deliver to Tyler a report describing the discrepancies. Tyler shall correct the errors or defects and Client may re -test the Software module(s), and at the end of such re -test the process described in this Section B/Subsection 4(a) shall be repeated. This procedure shall continue until Conditional Acceptance of the Software module(s) occurs. If Client and Tyler cannot mutually agree on whether a Software module performs in accordance with the requirements of this Agreement and the other recited documents, the dispute will first be taken up in a dispute resolution process which the parties have mutually developed in accordance with Section F/Subsection 6. Failing resolution, the parties may pursue remedies available to them pursuant to this Agreement or at law or in equity. b) Final Acceptance Once Conditional Acceptance of each of the Software modules has occurred, Client will determine a Go -Live Date and begin Live Testing the Software module in a production environment. After Client has operated the Software module for up to seventy-five (75) consecutive calendar days and there are no reported unresolved Priority 1 or Priority 2 issues (for which there is no reasonable work -around that Client can use), Final Acceptance shall be issued by Client. If the Priority 1 and/or Priority 2 issues are resolved within the last fifteen (15) days of the seventy-five (75) day period, Client will have an additional fifteen (15) days of Live Testing. Priority 1 and Priority 2 issues and their resolution procedures are defined in the Support Call Process attached as Exhibit 3. Failure to materially adhere to these procedures by Tyler may be interpreted by Client, at Client's reasonable discretion, as a "Failure of Live Testing" as described in Section B/Subsection 4(c). The Go -Live Date may be adjusted by mutual agreement of Client and Tyler, and such agreement shall not be unreasonably withheld by either party. Go -Live Date and Final Acceptance shall occur by Phase. c) Failure of Live Testing If, after Live Testing, the ERP System and/or Software modules do not function in compliance with the requirements and warranties of this Agreement, Client shall have the option, upon notice to Tyler, to: In the event of a Priority I issue, tenninate the entire Agreement for cause in accordance with the provisions hereof; or ii. Accept the ERP System at its then -existing level of performance; or iii. Permit the Live Testing to be further extended for such period as mutually agreed upon by the parties in writing; or iv. Accept those portions of the ERP System which pass the acceptance criteria and require Tyler to correct the remaining portions, in which event Client shall not be liable for any payments associated with the implementation of such remaining portions until they have been Accepted; or V. Pursue such remedies as may be available to Client at law or in equity. Final Acceptance of the ERP System by the Client will not release Tyler from complying with the warranties and maintenance requirements set forth in this Agreement. S. Cancellation. In the event Client cancels services less than two (2) weeks in advance of the mutually scheduled date of services, Client is liable to Tyler for the following: a) All non-refundable expenses incurred by Tyler on Client's behalf, and b) Tyler's then -current daily fees charged to clients for such services, only if Tyler is actually unable to re -assign its personnel. 6. Services Warranty. Tyler warrants that it shall perform services in a professional, good and workmanlike manner, consistent with industry standards. In the event Tyler provides services that do not conform to this warranty, Tyler will re -perform the services at no additional cost to Client. SECTION C: MAINTENANCE 1. Scope of Agreement. Client agrees to purchase and Tyler agrees to provide maintenance services for the Tyler Software Products in accordance with the following terms and conditions. 2. Additional Charges. Any maintenance services performed by Tyler for Client, at Client's express direction, which are not covered by this SaaS Agreement, (see Limitations and Exclusions at Section C/Subsection 4), including materials and expenses, will be billed to Client at Tyler's then -current rates. 3. Maintenance Services Terms and Conditions. For as long as this SaaS Agreement is in place, Tyler shall: 6 a) In a professional, good and workmanlike manner, consistent with industry standards, perform its obligations in accordance with Tyler's then -current support call process (Tyler's current support call process is set forth herein in Exhibit 3), in order to conform the Tyler Software Products to the applicable warranty under this Agreement. If there is an objective determination that Client has modified the Tyler Software Products without Tyler's prior written consent, Tyler's obligations to provide maintenance services on and to warrant the Tyler Software Products will be void. b) Provide telephone support on the Tyler Software Products. Tyler personnel shall accept telephone calls during the hours delineated in the Support Call Process in Exhibit 3. c) Continuously maintain a master set of the Tyler Software Products on appropriate media, a hardcopy printout of source code to the Tyler Software Products, and Tyler User Guides. d) hi order to provide maintenance services, maintain personnel that are appropriately trained to be familiar with the Tyler Software Products. e) Provide Client releases of the Tyler Software Products that Tyler makes generally available without additional charge to customers possessing a current Tyler SaaS Agreement. If required by Client, Third Party Products, Consulting and Training services related to the new releases will be provided to Client at Tyler's then -current prices. Client acknowledges and agrees that a new release of the Tyler Software Products is for implementation in the Tyler Software Products as they exist without Client customization or modification. f) Support prior releases of the Tyler Software Products in accordance with Tyler's then -current release life cycle policy. 4. Limitations and Exclusions. Maintenance fees do not include installation or implementation of Tyler Software Products, onsite support, application design, other consulting services, or support outside Tyler's normal business hours. 5. Access to Environment. Client shall provide, at no charge to Tyler, full and free access to the Tyler Software Products hosted by Tyler in order, when necessary, to provide maintenance services set forth herein. SECTION D: THIRD PARTY PRODUCTS 1. Agreement to License or Sell Third Party Products. For the price set forth in the Investment Summary, Tyler agrees to license or sell and deliver to Client, and Client agrees to accept from Tyler, the System Software and Hardware delineated in the Investment Summary (collectively, the "Third Party Products"). 2. License of System Software. a) Upon Client's payment in full of the System Software fees, Tyler shall grant to Client and Client shall accept from Tyler a non-exclusive, nontransferable, non -assignable license to use the System Software and related documentation for Client's internal business purposes, subject to the terms and conditions set forth herein. b) The developer of the System Software (singularly a "Developer," collectively "Developers") shall retain ownership of the System Software. c) The right to transfer the System Software to a replacement hardware system, if such System Software is installed on CIient-owned hardware, is governed by the Developer. The cost for new media or any required technical assistance to accommodate the transfer would be billable charges to Client. Client shall provide advance written notice to Tyler of any such transfer. d) Client acknowledges and agrees that the System Software and related documentation are proprietary to the Developer and have been developed as trade secrets at the Developer's expense. Client shall use reasonable efforts to keep the System Software and related documentation confidential and to prevent any misuse, unauthorized use, or unauthorized disclosure of the System Software and related documentation by any party under City's authority or control. c) Client shall not perform de -compilation, disassembly, translation or other reverse engineering on the System Software. f) CIient may make copies of the System Software if installed on Client hardware, but such copies shall be for archive purposes only. Client shall repeat any and all proprietary notices on any copy of the System Software. Client may make copies of the documentation accompanying the System Software for internal use only. 3. Deliver . Unless otherwise indicated in the Investment Summary, the prices for Third Party Products include costs for shipment while in transit from the Developer or supplier to Client. 4. Installation and Acceptance. Unless otherwise noted in the Investment Summary, the Tyler Software Product installation fee includes installation of the Third Party Products. Upon completion of installation, Client will obtain from Tyler a certification of completion, or similar document, which will constitute Client's acceptance of the Third Party Products. Such acceptance will be final and conclusive except for latent defect, fraud, and gross mistake amounting to fraud. 5. Site Requirements. Client shall provide a suitable on -premises environment, location and space for the installation and operation of the Third Party Products being installed, sufficient and adequate electrical circuits for the Third Party Products, and installation of all required cables. 6. Warranties. a) Tyler is authorized by each Developer to grant licenses or sublicenses to the System Software. b) Tyler warrants that each System Software product will be new and unused, and if Client fully and faithfully performs each substantive obligation required of it under this Third Party Product Agreement, Client's title or license to each System Software product will be free and clear of all liens and encumbrances arising through Tyler. c) Client acknowledges and agrees that Tyler is not the manufacturer of the Third Party Products. As such, Tyler does not warrant or guarantee the condition or operating characteristics of the Third Party Products. Tyler hereby grants and passes through to Client any warranty adjustments that Tyler may receive from the Developer or supplier of the Third Party Products. 7. Maintenance. a) In the event Client elects not to purchase maintenance services on the System Software through Tyler, it will be the responsibility of Client to repair and maintain the System Software and purchase enhancements as necessary after acceptance. b) In the event Client elects to purchase maintenance services on the System Software through Tyler, Tyler will facilitate resolution of a defect in a System Software product with the Developer. c) In the event the Developer charges a fee for future Systern Software release(s), Client will be required to pay such fee. 8. Limitation of Liabilfty with Regard to Third Party Products Only. In no event shall Tyler be liable for special, indirect, incidental, consequential, or exemplary damages, including, without limitation, any damages resulting from loss of use, loss of data, interruption of business activities, or failure to realize savings arising out of or in connection with the use of the Third Party Products. Tyler's liability for damages and expenses arising out of this Third Party Product Agreement, whether based on a theory of contract or tort, including negligence and strict liability, will be limited to the License Fee/Purchase Price of the Third Party Products paid by Client. Such prices are set in reliance upon this limitation of liability. SECTION E: SOFTWARE AS A SERVICE 1. Term. The term of this SaaS Agreement shall be January 1, 2013 through December 31, 2019 (the "Term"). 2. Hostiniz. Tyler shall host and make available to Client the Tyler Software Products listed in the Investment Summary attached hereto as Exhibit 1. 3. Concurrent Users. The SaaS Fees are based upon one hundred (100) concurrent users. Should the number of concurrent users be exceeded on a consistent basis over a three (3) month period, Tyler shall supply Client with written documentation evidencing the excess of concurrent users for that time period. Tyler reserves the right to re -negotiate the SaaS Fees based upon any resulting changes in the pricing categories. A written request to re -negotiate such SaaS Fees, due to the excess of concurrent users, shall be submitted to Client, along with the documentation, with any increase in fees to take effect no sooner than one quarter after such request is received. Self Service users are excluded from one hundred (100) concurrent user totals. 4. Access to Products in Accordance with Service Level Agreement. For as long as this SaaS Agreement is in effect, Tyler shall provide Client access to the Tyler Software Products then -licensed by Client in accordance with Tyler's then -current Service Level Agreement. The current Service Level Agreement is attached hereto as Exhibit 2. 5. Software Performance Resolution of Disputes. Notwithstanding anything to the contrary contained herein, in the event of disputes pertaining to performance levels, upon Tyler's failure to meet mutually agreed-upon performance levels for thirty (30) calendar days, each party shall appoint an authorized representative to cooperate in developing a mutually agreeable problem resolution plan which shall include a description of internal diagnostic procedures. Tyler shall perform according to the problem resolution plan and shall be responsible for updating any hardware on Tyler's site or taking additional action within Tyler's control to reach the agreed-upon performance level. In the event of a dispute between the parties under this Agreement pertaining to pecuniary damage or losses, the matter shall be settled in accordance with Section F/Subsection 6. 6. The Client agrees to timely pay and Tyler agrees to accept from Client as payment in full the SaaS Fees listed in the Investment Summary in Exhibit 1, and such payments on the part of City shall be made in accordance with this Agreement and the Texas Prompt Payment Act. Client acknowledges that continued access to the Tyler Software Products for itself and any Hosted Entities is contingent upon Client's payments of SaaS Fees in accordance with this Agreement and the Texas Prompt Payment Act. If Client fails to remit the SaaS Fees as required, Tyler shall have the right to terminate this Agreement and deny access to the hosted applications for Client, only upon Tyler having given Client thirty (30) days' prior written notice of Tyler's intent to terminate. 7. Prices include test, training, and production databases. 8. TCM SE hosting includes up to 50GB of storage. Should additional storage be needed, it may be purchased as needed at an annual fee of $1,000 per IOOGB with no total cap on storage. SECTION F: GENERAL TERMS AND CONDITIONS 1. Taxes. The fees set forth in the Investment Summary attached hereto as Exhibit 1 do not include any taxes, including, without limitation, sales, use or excise tax. City is a tax-exempt entity, and shall provide Tyler with City's tax-exempt certificate. 2. Invoice Dispute. a) In the event Client believes products or services do not conform to warranties delineated in this Agreement, Client will provide written notice to Tyler within thirty (30) calendar days of receipt of the applicable invoice. Client is allowed an additional fifteen (15) calendar days to provide written clarification and details. Tyler will provide a written response to Client that will include either a justification of the invoice or an adjustment to the invoice. Tyler and Client will develop a plan to outline the reasonable steps to be taken by Tyler and Client to resolve any issues presented in Client's notice to Tyler. Client may only withhold payment of the amount actually in dispute until Tyler completes its action items outlined in the plan. Notwithstanding the foregoing, if Tyler is unable to complete its actions outlined in the plan because Client has not completed its action items outlined in the plan, Client will remit frill payment of the invoice. 10 b) Any invoice not disputed as described above will be deemed accepted by Client, and will be paid in accordance with this Agreement and the Texas Prompt Payment Act. Tyler reserves the right to suspend delivery of services in the event Client fails to pay undisputed invoices within sixty (60) calendar days of receipt and Tyler reasonably believes that Client may not pay for any services delivered thereafter. 3. Force Majeure; Assistance by Client. "Force Majeure" is defined as an event beyond the reasonable control of a party, including governmental action, war, riot or civil commotion, fire, natural disaster, labor disputes, restraints affecting shipping or credit, delay of carriers, inadequate supply of suitable materials or any other cause which could not with reasonable diligence be foreseen, controlled or prevented by the party. Neither party shall be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure. Force Majeure will not be allowed unless: a) Within ten (10) business days of the occurrence of Force Majeure, the party whose performance is delayed thereby provides the other party or parties with written notice explaining the cause and extent thereof, as well as a request for a time extension equal to the estimated duration of the Force Majeure events. b) Within ten (10) business days after the cessation of the Force Majeure event, the party whose performance was delayed provides the other party written notice of the time at which Force Majeure ceased and a complete explanation of all pertinent events pertaining to the entire Force Majeure situation. Either party will have the right to terminate this Agreement if Force Majeure suspends performance of scheduled tasks by one or more parties for a period of one hundred -twenty (120) or more days from the scheduled date of the task. This paragraph will not relieve Client of its responsibility to pay for services and goods provided to Client and allowable expenses incurred on behalf of Client prior to the effective date of termination. In addition, Client acknowledges that the implementation of the Tyler Software Products is a cooperative process requiring the time and resources of Client personnel. Client shall, and shall cause Client personnel to, use all reasonable efforts to cooperate with and assist Tyler as may be reasonably required to meet the project deadlines and other milestones agreed to by the parties for implementation. Tyler shall not be liable for failure to meet such deadlines and milestones when such failure is due to Force Majeure (as defined above) or to the reasonably and objectively documented failure by Client personnel to provide such cooperation and assistance (either through action or omission). 4. Indemnification & Limitation of Liability. a) Tyler shall indemnify and hold harmless Client and its agents, officials and employees from and against any and all direct claims, losses, liabilities, damages, costs and expenses (including reasonable attorney's fees and costs) for personal injury or property damage arising from Tyler's negligence or willful misconduct. b) To the extent allowable by law, Client shall indemnify and hold harmless Tyler and its agents, officials and employees from and against any and all direct claims, losses, liabilities, damages, costs and expenses (including reasonable attorney's fees and costs) for personal injury or property damage arising from Client's negligence or willful misconduct. 11 c) Limitation of Liability. In no event shall Client be liable for special, indirect, incidental, consequential or exemplary damages. in no event shall Tyler be liable for special, indirect, incidental, consequential or exemplary damages, including without limitation any damages resulting from loss of use, loss of data, interruption of business activities or failure to realize savings arising out of or in connection with the use of the Tyler Software Products. In no event shall Tyler be liable for damages in excess of amounts paid by Client for the SaaS Fees identified in the Investment Summary attached hereto as Exhibit 1, and paid by Client. This limitation applies to all causes of action in the aggregate, including without limitation breach of warranty, negligence, strict liability and misrepresentation and other torts. The fees herein reflect and are set in reliance upon this allocation of risk and the exclusion of such damages as set forth in this Agreement. The foregoing limitation of liability is not applicable to Third Party Products. 5. Disclaimer. THE RIGHTS, REMEDIES, AND WARRANTIES SET FORTH IN THIS SaaS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF ALL OTHER RIGHTS, REMEDIES, AND WARRANTIES EXPRESSED, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND SYSTEM INTEGRATION, WHICH ARE HEREBY DISCLAIMED BY TYLER. 6. Dispute Resolution. The parties hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute. In the event of a claim or dispute arising under this Agreement, the parties agree to mutually develop and pursue a dispute resolution process and will use reasonable efforts to efficiently address and resolve the claim or dispute through such dispute resolution process. Failing resolution, the parties may pursue remedies available to them pursuant to this Agreement or at law or in equity. 7. No Intended Third Party Beneficiaries. This Agreement is entered into solely for the benefit of Tyler and Client. No third party will be deemed a beneficiary of this Agreement, and no third party will have the right to make any claim or assert any right under this Agreement. 8. Governing Law. This Agreement will be governed by and construed in accordance with the laws of Clients state of domicile, that being Texas, and jurisdiction and venue for any action shall lie in Williamson County. 9. Entire Agreement. This Agreement represents the entire agreement of Client and Tyler with respect to the subject matter hereof, and supersedes any prior agreements, understandings, and representations, whether written, oral, expressed, implied, or statutory. Client hereby acknowledges that in entering into this Agreement it did not rely on any information not explicitly set forth in this Agreement. 12 10. Severability. If any term or provision of this Agreement or the application thereof, to any extent, be held invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable will not be affected thereby, and each term and provision of this Agreement will be valid and enforced to the fullest extent permitted by law. 11. No Waiver. In the event that the terms and conditions of this Agreement are not strictly enforced by Tyler or Client, such non -enforcement shall not act as or be deemed to act as a waiver or modification of this Agreement, nor shall such non -enforcement prevent Tyler or Client from enforcing each and every term of this Agreement thereafter. 12. Multiple Originals and Signatures. tures. This Agreement may be executed in multiple originals, any of which shall be independently treated as an original document. 13. Amendment. This Agreement may only be modified by written amendment signed by authorized representatives of both parties. 14. Non -Appropriation and Termination. If Client should not appropriate or otherwise make available finds sufficient to pay the SaaS Fees for the Tyler Software Products set forth in this Agreement, Client may unilaterally terminate this Agreement only upon thirty (30) days' written notice to Tyler. Termination for non -appropriation does not include the right to terminate this Agreement in order to obtain the same or similar services from a different vendor. Client may terminate this Agreement for convenience, or for cause in the event Tyler does not cure a material breach of this Agreement within thirty (30) days of receiving notice of such breach from Client. Upon any termination of this SaaS Agreement, Client shall pay Tyler for all services and products delivered and expenses incurred prior to the date Tyler received Client's notice of termination. Additionally, Client will be responsible for payment to any third parties for the purchase of Systems software, or other third party software or hardware delivered to Client's site as of the date of termination or cancellation. Upon evidence of Tyler's agreement, which agreement shall not be unreasonably withheld, Client shall be entitled to have Tyler perform professional services related to migration to another product. Such services, if performed, shall be at Tyler's then -current rates, and shall be performed at such time as the parties may mutually agree. Matters regarding disputes concerning payment for products, services and expenses shall be settled in accordance with Section F/Subsection 6. Upon termination by any party or method, Tyler will provide Client the client data then residing in the Tyler -hosted environment. The data shall be provided in ASCII or such other format as may be 13 mutually agreed by the parties. Provided that Client gives at least ten (10) days' advance notice to Tyler, a copy of such data will be provided no later than sixty (60) days prior to the Termination Date and again seven (7) days after the Termination Date. 15. Approval of Governing Body. Client represents and warrants to Tyler that this Agreement has been approved by its governing body and is a binding obligation upon Client. 16. No Assignment. Neither party may assign its rights and responsibilities under this Agreement without the other party's prior written permission, and such permission shall not be unreasonably withheld, except that Tyler, without receiving such prior written permission, may assign the award or the mutually negotiated contract in its entirety to the surviving entity of any merger or consolidation or to any purchaser of substantially all of Tyler's assets. 17. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their permitted successors and assigns. 18. Notices. All notices or coin mun ications required or permitted as a part of this Agreement will be in writing (unless another verifiable medium is expressly authorized) and will be deemed delivered when: a) Actually received; b) Upon receipt by sender of a CM/RRR card, signed by an employee or agent of the pad'; C) Upon receipt by sender of proof of email delivery; or d) If not actually received, ten (10) days after deposit with the United States Postal Service authorized mail center with proper postage (certified mail/return receipt requested) affixed and addressed to the respective other party at the address set forth in this Agreement or such other address as the party may have designated by notice or amendment to the other party. Consequences to be borne due to failure to receive a notice due to improper notification by the intended receiving party of a new address will be borne by the intended receiving party. The addresses of the parties to this Agreement are as follows: To Tyler: Tyler Technologies, Inc. 1 Cole Haan Drive Yarmouth, ME 04096 Attention: Contracts Manager 14 To City: City of Round Rock 221 East Main Street Round Rock, TX 78664 Attention: City Manager and to: City Attorney Stephan L. Sheets 309 East Main Street Round Rock, TX 78664 19. hidependent Contractor. This is not an agreement of partnership or employment of Tyler or any of Tyler's employees by Client. Tyler is an independent contractor for all purposes under this Agreement. 20. Insurance. Prior to performing services under this Agreement, Tyler shall provide Client with certificates of insurance evidencing the following insurance coverage: a) Commercial general liability of at least $1,000,000; b) Automobile liability of at least $1,000,000; c) Professional liability of at least $1,000,000; and d) Workers compensation complying with statutory requirements. 21. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights of private individuals and entities. Each party agrees that it shall not disclose any confidential information of the other party and further agrees to take appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Agreement for a period of two (2) years. This obligation of confidentiality will not apply to information that: a) At the time of the disclosure is in the public domain; b) After disclosure, becomes part of the public domain by publication or otherwise, except by breach of this Agreement by a party; c) A party can establish by reasonable proof was in that party's possession at the time of disclosure; d) A party receives from a third party who has a right to disclose it to that party; or 15 e) Is subject to the Public Information Act, Chapter 552 of the Texas Government Code (hereinafter, the "Public Information Act"). Tyler expressly acknowledges its understanding that City is subject to the Public information Act, and its awareness and agreement that City will respond to information requests in accordance with the Act. In accordance with the Public Information Act, Client shall make a good faith effort to inform Tyler of any requests for Tyler trade secret information, including without limitation, information in which Tyler holds a proprietary interest. 22. Nondiscrimination. Tyler shall not discriminate against any person employed or applying for employment concerning the performance of Tyler's responsibilities under this Agreement. This discrimination prohibition will apply to all matters of initial employment, tenure, and terms of employment, or otherwise with respect to any matter directly or indirectly relating to employment concerning race, color, religion, national origin, age, sex, sexual orientation, ancestry, disability that is unrelated to the individual's ability to perform the duties of a particular job or position, height, weight, marital status, or political affiliation. 23. Subcontractors. Tyler shall not subcontract any services tinder this Agreement without Client's prior written permission, and such permission shall not be unreasonably withheld. 24. Shi in . Delivery will be F.O.B. destination. 25. Business License. In the event a local business license is required for Tyler to perform services hereunder, Client will notify Tyler prior to the Effective Date and will provide Tyler with the necessary paperwork and/or contact information. 26. Tyler Forms Processing. The Tyler Software Product "Tyler Forms Processing" must be used in conjunction with a Hewlett Packard printer supported by Tyler for printing checks. 27. Electronic Payment. Tyler prefers to receive payments electronically. Tyler's electronic payment information is as follows: Bank ABA: Account: Beneficiary: 28. Optional Items. Wells Fargo Bank, N.A. 420 Montgomery San Francisco, CA 94104 121000248 4124302472 Tyler Technologies Inc. — Operating Pricing for optional products and services shall be valid for twelve (12) months from the Effective Date. IF., 29. Tyler Products and Services. Client may purchase additional Tyler products and services at then -current list price, pursuant to the terms of this Agreement, by executing a mutually agreed addendum. 30. Payment Terms. a) Client shall pay undisputed invoices within thirty (30) calendar days of invoice receipt. The foregoing notwithstanding, the parties expressly acknowledge that Client shall make payment in accordance with the Texas Prompt Payment Act. b) The total financial obligation of Client to Tyler for the software products and services listed in the Investment Summary attached hereto as Exhibit I is the amount of $1,982,307.00, and shall be paid as follows: i. Hardware fees of $1,650.00 will be invoiced upon delivery of the Secure Signature Hardware; ii. Hardware fees of $14,435.00 will be invoiced upon delivery of the BMI Hardware; iii. Unless otherwise indicated, fees for services, plus expenses, will be invoiced as provided and/or incurred. iv. VPN Device Installation Fee of $4,000.00 will be invoiced when provided. v. Project Planning Services fee of $9,000.00 will be invoiced upon delivery of the Project Plan. vi. On or before the first day of the Term of this Agreement, and on or before the first day of every third month thereafter through the end of the Term, Client will remit to Tyler quarterly SaaS Fees in the amount of $60,111.50, for a projected seven-year total of $1,683,122.00. c) Prices do not include travel expenses incurred in accordance with Tyler's then -current Business Travel Policy. Estimated travel expenses are delineated in the Investment Summary attached hereto as Exhibit 1. Tyler's current Business Travel Policy is attached hereto as Exhibit 4. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth below. Tyler Technologies, Inc. ERP and Schools Division By: >-,? . Name: ,c—f,4 Title: Ss�Sf�.�T Date: /y- ZDiL City of Round Rock, Texas Date: 17 m lb---�� Exhibit I Investment Summary Annual Saas MUNISApplications costs Software Imp days Conversion Accounting/GL/BG/AP $46,262 22 $12,3 Fixed Assets $13,994 8 $5,500 Purchase Orders $13,874 8 $3,DDO Project and Grant Accounting $10,520 6 $5,000 Requisitions $9,834 10 Risk Management $10,520 6 MONIS Cash Management $9,834 5 Contract Management $6,348 4 SMI Asset Track Interface $2,188 3 Payroll w/ESS $13,585 20 $18,800 HR Management $6,660 8 Applicant Trackin $3,174 4 Professional Development $3,775 3 General Billing $5,771 7 $9,8 Accounts Recievable $12,720 13 Tyler Content Manager SE $17,336 8 Role Tailored Dashboard $9,546 7 MUNISOffice $9,546 3 Tyler Reporting Services $11,565 3 T lercontent ManagerAuto Indexing and Redaction $2,885 2 Tyler ContentMana erWebUcense $2,885 2 Business and Vendor Self Service $9,834 1 Tyler Forms Processing $7,790 0 Subtotals =Software, Imp Days, Conversion $240,446 153 $54,400 One Time Year 1 Expenses: Other Se rvices AP/PR Check Recon Import $1,000 AP Positive Pay Export Format $3,000 P -Card import Format W/encumbrances $15,000 Project Planning Services $9,000 PR Positive Pay Export Format $3 000 System Admin & Security $3,525 Tyler Forms Library- Financial/General 81111 ng $4,500 Tyler Forms Library - Pa roll $1,400 Tyler Forms Processing Confi uration $2,000 Tyler PO Distribution - Level 4 $2,500 VPN Device $4,000 Other Services Subtotal $48,925 3rd Party Hardware,Software and Services BMI PA600 Pocket AssetTrak $2,295 BMI-AssetTrack-PPC for MUNIS (include Install feel $6,500 DMI PA600 Pocket Trans Trak $2,295 BMI Transtrak Fixed Asset ReceivingSystern $3,345 Tyler Secure Sl nature System with 2 Keys $1,650 3rd Party Hardware,Software and Services Subtotal $16,085 Services to be pald as Incurred Subtotal lm lementadon days =153@1175 $179,775 Subtotal Data Conversions $54,400 Services To be paild as incurred Subtotal $234,175 Total forServlces to be Paid as Incurred $299,185 Year - Year2 jYear3 Year4 Years Year6 --: Year7 Years Totals - .$539,631 $240,4461 240,446 $24044 $2413,446 $740,446 -$240,446 7 Year Total SaaS Annual Fees only $1,683,122 Total 7Year Cost less; Ex enses $1982,307 Total Including Estimated Expenses - - $2,061,867 Estimated Expenses; Total Days Airfare 750 XNdays 13day stay $38,250 153 Food =$70 perda $10,710 153 Car =$75 perda $11,475 153 Hotel =$125 perda $19,125 153 Estimated Total Expense $79,560 Conversion Detail SaaS Annual Amount Service Days AC Opt 1- Actuals $1,500 AC Opt 2- Budgets $1,500 AC Standard COA $2,000 APO t 1 Checks $2,000 Ap Opt 2 Invoice $3,500 AP Standard Master $1,800 FA Opt 1 History $2,000 FA Std Master $3,500 GB Opt 1 Recurring Invoices $3,500 GB Opt 2 Bills $4,500 GB STD CID $1,800 PGA Standard $2,000 PGO t 1Actuals $1,500 PG Opt 2 Budgets $1,500 PR Payroll -Option 10 Certification $1,400 PR Payroll - Option 11 Education $1,400 PR Payroll - Option 1 Deductions $1,800 PR Payroll - Option 2 Accrual Balances $1,500 PR Payroll - Option 3 Accumulators - $1,400 PR Payroll - Option 4 Check History $1,200 PR Payroll - Option 5 Earning/Deduction Hist $2,500 PR Payroll - Option 6 Applicant Tracking $1,400 PR Payroll - Option 7 PM Action History $1,400 PR Payroll - Option 8 Position Control $1,400 PR Payroll - Option 9 State Retirement Tables $1,400 PR Payroll - Standard - $2,000 Purchase Orders - Standard $3,000 Total Conversions Costs $54,400 Optional Items Software SaaS Annual Amount Service Days 03175 Conversion Inventory Software $13,941 8 $6,200 Citizens Self Service Software $12,674 1 Standard Fuel Interface $1,994 3 Work Orders/Fleet and Facilities $17,426 25 $17,500 Tyler Incident Management $12,674 10 Maplink GIS Software $9,505 1 Employee Expense Reimbursement $5,1851 8 GASB 34 Report Writer $7,2011 4 Detailed Conversion In Option 1- Commodity Codes $2,200 In Std Master $4,000 WO Opt 1- Wrk Order Asset $4,500 WO Opt 2 - Closed Wrk Order Hist No Cost Data $6,500 WOO t 3 - WO Hist with Cost Data $6,5001 Exhibit 2 Service Level Agreement I. Aireement Overview This Service Level Agreement ("SLA") operates in conjunction with, and does not supersede or replace any part of, the SaaS Agreement. This SLA outlines the information technology service levels that Tyler will provide to Client to ensure the availability of the application services that the Client has contracted with Tyler to provide. All other Client support services are documented in the Support Call Process exhibit to the SaaS Agreement. H. Definitions Attainment: The percentage of time a service is available during a billing cycle, with percentages rounded to the nearest whole number. Client Error Incident: Any service unavailability resulting from a Client's applications, content or equipment, or the acts or omissions of any of Client's service users or Client's third -party providers over whom Tyler exercises no control. Defect: Any failure of the licensed software that is recognized as a "defect" under the agreement through which Client licenses the Tyler software. Doivntime: Those minutes during which the software products set forth in the SaaS Agreement are not available for any type of Client use. Downtime does not include those instances in which only a Defect is present. Force Majeure: An event beyond the reasonable control of Tyler, including governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause which could not with reasonable diligence be foreseen, controlled, or prevented by the party. Service Availability: The total number of minutes in a billing cycle that a given service is capable of receiving, processing, and responding to requests, excluding maintenance windows, Client Error Incidents and Force Majeure. III. Service Availability The Service Availability of Tyler's applications is intended to be 24/7/365. Tyler sets Service Availability goals and measures whether it has met those goals by tracking Attainment. a. Client Responsibilities Whenever a Client experiences Downtime, that Client must make a support call according to the procedures outlined in the Support Call Process exhibit. The Client will receive a support incident number. To track attainment, the Client must document, in writing, all Downtime that it has experienced during a billing cycle. The Client must deliver such documentation to Tyler within 30 days of a billing cycle's end. The documentation the Client provides must evidence the Downtime clearly and convincingly. It must include, for example, the support incident number(s) and the date, time and duration of the Downtime(s). b. Tyler Responsibilities When Tyler's support team receives a call from a Client that a Downtime has occurred or is occurring, Tyler will work with the Client to identify the cause of the Downtime (including whether it may be the result of a Client Error Incident or Force Majeure). Tyler will also work with the Client to resume normal operations. Upon timely receipt of a Client's Downtime report, outlined above in Section III(a), Tyler will compare that report to Tyler's own outage logs and support tickets to confirm that a Downtime for which Tyler was responsible indeed occurred. Tyler will respond to a Client's Downtime report within 30 day(s) of receipt. To the extent Tyler has confirmed Downtime for which Tyler is responsible, Tyler will provide Client with the relief set forth below. c. Client Relief When a Service Availability goal is not met due to confirmed Downtime, Tyler will provide the affected Client with relief that corresponds to the percentage amount by which that goal was not achieved, as set forth in the Client Relief Schedule below. Notwithstanding the above, the total amount of all relief that would be due wider this SLA will not exceed 5% of the fee for any one billing cycle. Issuing of such credit does not relieve Tyler of its obligations under the SaaS Agreement to correct the problem which created the service interruption. A correction may occur in the billing cycle following the service interruption. In that circumstance, if service levels do not meet the corresponding goal for that later billing cycle, Client's credits will be doubled. Every billing cycle, Tyler will compare confirmed Downtime to Service Availability. In the event actual Attainment does not meet the targeted Attainment, the following Client relief will apply: Client Relief Schedule Targeted Attainment Actual Attainment Client Relief 100% 98-99% Remedial action will be taken. 100% 95-97% 4% credit of fee for affected billing cycle will be posted to next billing cycle 100% <95% 5% credit of fee for affected billing cycle will be posted to next billing cycle A Client may request a report from Tyler that documents the preceding billing cycle's Service Availability, Downtime, any remedial actions that have been/will be taken, and any credits that may be issued. IV. Applicability The commitments set forth in this SLA do not apply during maintenance windows, Client Error Incidents, and Force Majeure. Tyler performs maintenance during limited windows that are historically known to be reliably low -traffic times. If and when maintenance is predicted to occur during periods of higher traffic, Tyler will provide advance notice of those windows and will coordinate to the greatest extent possible with the Client. V. Force Majeure The Client will not hold Tyler responsible for meeting service levels outlined in this SLA to the extent any failure to do so is caused by Force Majeure. In the event of Force Majeure, Tyler will file with the Client a signed request that said failure be excused. That writing will at least include the essential details and circumstances supporting Tyler's request for relief pursuant to this Section. The Client will not unreasonably withhold its acceptance of such a request. Exhibit 3 Support Call Process Client Support Tyler Technical Support Department for Munis® Goal. To provide all effective support nlechanisnl that will guarantee tilnely resolution to calls, resulting in high-level client satisfaction. Contact Us Call Tyler's toll fi-ee number (800-772-2260) or log a support request online through the Tyler Client Portal available at Tyler's Support Web site (www_tylertech.com). Support Organization Tyler's Technical Support Department for Munis is divided into multiple teams: Financials, Payroll/HR/Pension, Tax/Other Revenue and Collections, Utility Billing and Collections, OS/DBA (Operating System and Database Administration), and TylerForms and Reporting Services. These "product -specific" teams allow support staff to focus on a group of products or services. A group of specialists assigned to each team handle calls quickly and accurately. Each team consists of a Munis Support Product Manager, Support Analysts and Technical Support Specialists. The Support Product Manager is responsible for the day-to-day operations of the team and ensures we provide exceptional technical support to our clients. The Support Analysts are responsible for assisting the team with clients' issues, and provide on-going team training. Technical Support Specialists are responsible for diagnosing and resolving client issues in a timely and courteous manner. Standard Support Hours Applications Hours Financials 8:OOam-9:OOpm EST Monday -Friday* PayrolVHR/Pension 8:OOam-9:OOpm EST Monday -Friday* Tax/Other Revenue & Collections 8:OOam-6:OOpm EST Monday -Friday Utility Billing & Collections 8:OOam-8:OOpm EST Monday -Friday OS/DBA 8:OOam-9:OOpm EST Monday -Friday TylerForms & Reporting Services 8:OOam-5:OOpm EST Monday -Friday * Hours as of 1/1/2013 Focus on Incoming Rate When you call Technical Support, your call is answered by a Support Technician, or is transferred into the Support voice mail. Our goal is to capture 75% of our daily calls incoming, which means you will often start working with a Support Specialist immediately upon calling Tyler. Tyler will respond to all Priority 1 calls received in the same business day and will continue to work on the incident, after business hours if necessary, until either a resolution or work -around is established or the parties reasonably agree to suspend discussion until the beginning of the next business day. Leaving Messages for Support When leaving a message on the Support voice mail, ensure the following information is contained within the message: • Your frill name (first name, last name) and the site you are calling for/from • A phone number where you can be reached • The details of the issue or question you have (i.e.: program, • process, error message) • The priority of the issue (1, 2, 3, or 4) • When you will be available for a return call (often Support will call back within an hour of receiving your message) Paging All client questions are important to us. There may be times when you are experiencing a priority 1 critical issue and all technicians for the requested team are on the line assisting clients. In this circumstance, it is appropriate to press 0 to be redirected to the operator. The operator will page the team you need to contact. We ask that you reserve this function for those times when Munis is down, or a mission critical application is down and you are not able to reach a technician inunediately. Online Support Some questions can be handled effectively by e-mail. Once registered as a user on Tyler's Support Web site at www.tylertech.com, you can ask questions or report issues to Support through "Customer Tools". Tyler's Client Portal (TCP) allows you to log an incident to Technical Support anytime from any Internet connection. All TCP account, incident and survey data is available in real-time. Your existing contact information defaults when you add a new Support incident. You will be asked for required information including Incident Description, Priority, Product Group and Product Module. Unlimited work -note text is available for you to describe the question or problem in detail, plus you can attach files or screenshots that may be helpful to Support. When a new incident is added, the incident number is presented on the screen, and you will receive an automated e-mail response that includes the incident number. The new incident is routed to the appropriate Technical Support Team queue for response. They will review your incident, research the item, and respond via e-mail according to the priority of the incident. (See Priority Table) Customer Relationship Management System Every call or e-mail from you is logged into our Customer Relationship Management System and given a unique call number. This system tracks the history of each incident, including the person calling, time of the call, priority of the call, description of the problem, support recommendations, client feedback and resolution. For registered users on Tyler's Support Web site (www.tylertech.com), a list of calls is available real-time under the Tyler Client Portal (TCP). Call Numbers Support's goal is to return clients' calls as soon as possible. If you are not available when we call back, we will leave a message with the open call number on your voice mail or with a person in your office. When you call back, you can reference this call number so you do not have to re -explain the issue. An open call number is also given to you once an initial contact has been made with Support and it has been determined that the issue can't be resolved during the initial call. The open call number lets you easily track and reference specific open issues with Support. Call Response Goals Open Call Priori Maximum number of days a support call is open Support managers and analysts review open calls 1 Less than a day Dail 2 10 Days or less Every other day 3 30 Days or less Weekly 4 60 Days or less Weekly Call Priorities A call escalation system is in place where, each day, Support Analysts and Product Support Managers, review open calls in their focus area to monitor progress. Each call logged is given a priority (1, 2, 3, and 4) according to the client's needs/deadlines. The goal of this structure is to clearly understand the importance of the issue and assign the priority for closure. The client is responsible for setting the priority of the call. Tyler Support for Munis tracks responsiveness to priority 1, 2 and 3 calls each week. This measurement allows us to better evaluate overall client satisfaction. Priority 1 Call — issue is critical to the client, the Munis application or process is down. Priority 2 Call — issue is severe, but there is a work around the client can use. Priority 3 Call — issue is a non -severe support call from the client. Priority 4 Call --- issue is non-critical for the client and they would like to work with Support as time permits. Following Up on Open Calls Some issues will not be resolved during the initial call with a Support Technician. If the call remains open, the technician will give you an open call number to reference, and will confirm the priority of the incident. If you want to follow up on an open call, simply call the appropriate Support Team and reference the call number to the Technician who answers or leave this information in your message. Referencing the open call number allows anyone in support to quickly follow up on the issue. You can also update the incident through TCP on Tyler's Web site (www.tylertecii.com) and add a note requesting follow-up. Escalating a Support Call If the situation to be addressed by your open call has changed and you need to have the call priority adjusted, please call the appropriate Support Team and ask to be connected to the assigned technician. If that technician is unavailable, another technician on the team may be able to assist you, or will transfer you to the Product Support Team Manager. If you feel you are not receiving the service you need, please call the appropriate Product Manager and provide them with the open call number for which you need assistance. The Product Manager will follow up on your open issue and determine the necessary action to meet your needs. Technical Support Product Managers: Financials Team Michelle Madore (michelle.madore@tylertech.com) Payroll/HR/Pension Team Sonja Johnson (sonja.johnson@tylertech.com) Tax/Other Revenue[Utility Billing Steven Jones (steven.jones@tylertech.com) Team OS/DBA Team Ben King (ben.king@tylertech.com) (X4483) (X4157) (X4255) (X5464) TylerForms & Reporting Services Michele Violette(michele.violette@tylertech.com) (X4381) If you are unable to reach the Product Manager, please call CJMcCarron, Vice President of Technical Support at 800-772-2260, ext. 4124(ci.mecarronatylertech.conr). Resources A number of additional resources are available to you to provide a comprehensive and complete support experience. Munis Internet Updater (NW: Allows you to download and install critical and high priority fixes as soon as they become available. Release Admin Console: Allows you to monitor and track the availability of all development activity for a particular release; right from inside Munis. Knowledgebase: A frilly searchable depository of thousands of documents related to Munis processing, procedures, release info, helpful hints, etc. Remote Support Tool Some Support calls may require fiuther analysis of your database or setup to diagnose a problem or to assist you with a question. GoToAssist® shares your desktop via the Internet to provide you with virtual on-site support. The GoToAssist tool from Citrix (www.citrix.com) provides a highly secure connection with 128 -bit, end-to- end AES encryption. Support is able to quickly connect to your desktop and view your site's setup, diagnose problems, or assist you with screen navigation. At the end of each GoToAssist session, there is a quick survey you should complete so we have accurate and up- to-date feedback on your Support experiences. We review the survey data in order to continually improve our Support services. E-mail Registration Clients can go to our Web site and register for a-rnail "groups" based on specific Munis applications. We use these groups to inform clients of issues, and to distribute helpful technical tips and updated technical documentation. The survey information allows you to update your registration at any time, and you may unregister for one or more distribution lists at any time. Tyler Web site Once you have registered as a user on Tyler's Support Web site (www.tylertech.coin), you have access to "Customer Tools" and other information such as online documentation, user forums, group training schedule/sign-up, and annual user conference updates/registration. Timely TCP Progress Updates Our technicians are committed to providing you timely updates on the progress of your open support incidents via the Tyler Client Portal. The frequency of these updates is determined by issue priority. Priority I Incidents — Daily updates (only if phone contact is not possible) Priority 2 Incidents — Weekly Updates Priority 3 Incidents Bi -weekly Updates Priority 4 Incidents — Bi -weekly Updates Updates will also be provided for any issue, regardless of priority, when action items have been completed or when there is pertinent information to share. Exhibit 4 Business Travel Policy Summa Air Travel A. Reservations & Tickets Tyler's Travel Management Company (TMC) will provide an employee with a direct flight within two hours before or after the requested departure time, assuming that flight does not add more than three hours to the employee's total trip duration and the fare is within $100 (each way) of the lowest logical fare. 1f a net savings of $200 or more (each way) is possible through a connecting flight that is within two hours before or after the requested departure time and that does not add more than three hours to the employee's total trip duration, the connecting flight should be accepted. Employees are encouraged to make reservations far enough in advance to take full advantage of discount opportunities. A seven day advance booking requirement is mandatory. When booking less than seven days in advance, management approval will be required. Except in the case of international travel where a segment of continuous air travel is scheduled to exceed six hours, only economy or coach class seating is reimbursable. B. Baggage Fees Reimbursement of personal baggage charges are based on the trip duration as follows: • Up to five days = one checked bag • Six or more days = two checked bags Baggage fees for sports equipment are not reimbursable. 2. Ground Transportation A. Private Automobile Mileage Allowance -Business use of an employee's private automobile will be reimbursed at the current IRS allowable rate, plus out of pocket costs for tolls and parking. Mileage will be calculated by using the employee's office as the starting and ending point, in compliance with IRS regulations. Employees who have been designated a home office should calculate miles from their home. B. Rental Car Employees are authorized to rent cars only in conjunction with air travel when cost, convenience and the specific situation require their use. When renting a car for Tyler business, employees should select a "mid- size" or "intermediate" car. "Full" size cars may be rented when three or more employees are traveling together. Tyler carries leased vehicle coverage for business car rentals; additional insurance on the rental agreement should be declined. 3. C. Public Transportation Taxi or airport limousine services may be considered when traveling in and around cities or to and from airports when less expensive means of transportation are unavailable or unpractical. The actual fare plus a reasonable tip (15-18%) are reimbursable. In the case of a fi-ee hotel shuttle to the airport, tips are included in the per diem rates and will not be reimbursed separately. D. Parking & Tolls When parking at the airport, employees must use longer term parking areas that are measured in days as opposed to hours. Park and fly options located near some airports may also be used. For extended trips that would result in excessive parking charges, public transportation to/from the airport should be considered. Tolls will be reimbursed when receipts are presented. Lodging Tyler's TMC will select hotel chains that are well established, reasonable in price and conveniently located in relation to the traveler's work assignment. Typical hotel chains include Courtyard, Fairfield Inn, Hampton Lin and Holiday Inn Express. If the employee has a discount rate with a local hotel, the hotel reservation should note that discount and the employee should confirm the lower rate with the hotel upon arrival. Employee memberships in travel clubs such as AAA should be noted in their travel profiles so that the employee can take advantage of any lower club rates. "No shows" or cancellation fees are not reimbursable if the employee does not comply with the hotel's cancellation policy. Tips for maids and other hotel staff are included in the per diem rate and are not reimbursed separately. 4. Meals and Incidental Expenses Employee meals and incidental expenses while on travel status are in accordance with the federal per diem rates published by the General Services Administration. Incidental expenses include tips to maids, hotel staff, and shuttle drivers and other minor travel expenses. Per diem rates range from $46 to $71. A complete listing is available at www.gsa.gov/perdiein. A. Overnight Travel For each full day of travel, all three meals are reimbursable. Per diems on the first and last day of a trip are governed as set forth below. Departure Day Depart before 12:00 noon Depart after 12:00 noon Return Day Return before 12:00 noon Return between 12:00 noon & 7:00 p.m. Return after 7:00* p.m. Lunch and dinner Dinner Breakfast Breakfast and lunch Breakfast, lunch and dinner *7:00 is defined as direct travel time and does not include time taken to stop for dinner The reimbursement rates for individual meals are calculated as a percentage of the full day per diem as follows: • Breakfast 15% • Lunch 25% • Dinner 60% B. Same Day Travel Employees traveling at least 100 miles to a site and retuning in the same day are eligible to claim lunch on an expense report. Employees on same day travel status are eligible to claim dinner in the event they return home after 7:00* p.m. *7:00 is defined as direct travel time and does not include time taken to stop for dinner Entertainment All entertainment expenses must have a business purpose; a business discussion must occur either before, after or during the event in order to qualify for reimbursement. The highest-raudcing employee present at the meal must pay for and submit entertainment expenses. An employee who submits an entertainment expense for a meal or participates in a meal submitted by another employee cannot claim a per diem for that same meal. Internet Access — Hotels and Airports Employees who travel may need to access their e-mail at night. Many hotels provide free high speed internet access and Tyler employees are encouraged to use such hotels whenever possible. If an employee's hotel charges for internet access it is reimbursable up to $10.00 per day. Charges for internet access at airports are not reimbursable. Effective Date: April 1, 2012 Exhibit 5 Adobe End User License Agreement ADOBE SYSTEMS INCORPORATED ADOBE CENTRAL OUTPUT SOFTWARE Software License Agreement NOTICE TO USER: THIS LICENSE AGREEMENT GOVERNS INSTALLATION AND USE OF THE ADOBE SOFTWARE DESCRIBED HEREIN BY LICENSEES OF SUCH SOFTWARE. INSTALLATION AND USE OF THE SOFTWARE IS NOT PERMITTED UNLESS ADOBE HAS GRANTED LICENSEE THE RIGHT TO DO SO AS SEPARATELY PROVIDED IN WRITING BY ADOBE. LICENSEE AGREES THAT THIS AGREEMENT IS LIKE ANY WRITTEN NEGOTIATED AGREEMENT SIGNED BY LICENSEE. BY CLICKING TO ACKNOWLEDGE AGREEMENT TO BE BOUND DURING REVIEW OF AN ELECTRONIC VERSION OF THIS LICENSE, OR DOWNLOADING, COPYING, INSTALLING OR USING THE SOFTWARE, LICENSEE ACCEPTS ALL THE TERMS AND CONDITIONS OF THIS AGREEMENT. THIS AGREEMENT IS ENFORCEABLE AGAINST ANY PERSON OR ENTITY THAT INSTALLS AND USES THE SOFTWARE AND ANY PERSON OR ENTITY (E.G., SYSTEM INTEGRATOR, CONSULTANT OR CONTRACTOR) THAT INSTALLS OR USES THE SOFTWARE ON ANOTHER PERSON'S OR ENTITY'S BEHALF. LICENSEE'S RIGHTS UNDER THIS AGREEMENT MAY BE SUBJECT TO ADDITIONAL TERMS AND CONDITIONS IN A SEPARATE WRITTEN AGREEMENT WITH ADOBE THAT SUPPLEMENTS OR SUPERSEDES ALL OR PORTIONS OF THIS AGREEMENT. Definitions 1.1 "Adobe" means Adobe Systems Incorporated, a Delaware corporation, 345 Park Avenue, San Jose, California 95110, if subsection 9(a) of this Agreement applies; otherwise it means Adobe Systems Software Ireland Limited, 4-6 Riverwalk, Citywest Business Campus, Saggart, Dublin 24, Ireland, a company organized under the laws of Ireland and an affiliate and licensee of Adobe Systems Incorporated. 1.2 "Authorized Users" means employees and individual contractors (i.e., temporary employees) of Licensee. 1.3 "Computer" means one or more central processing units ("CPU") in a hardware device (including hardware devices accessed by multiple users through a network ("Server")) that accepts information in digital or similar form and manipulates it for a specific result based on a sequence of instructions. 1.4 "Deliver" means to transmit data directly or indirectly over a network to a printing device or any other device for the purpose of printing. 1.5 "Development Software" means Software licensed for use in a technical environment solely for internal development and testing and not for use as Production Software. 1.6 "Disaster Recovery Environment" means Licensee's technical environment designed solely to allow Licensee to respond to an interruption in service due to an event beyond Licensee's control that creates an inability on Licensee's part to provide critical business functions for a material period of time. 1.7 "Documentation" means the user manuals and/or technical publications as applicable, relating to installation, use and administration of the Software. 1.8 "Internal Network" means Licensee's private, proprietary network resource accessible only by Authorized Users. "Internal Network" specifically excludes the Internet (as such term is commonly defined) or any other network community open to the public, including membership or subscription driven groups, associations or similar organizations. Connection by secure links such as VPN or dial up to Licensee's Internal Network for the purpose of allowing Authorized Users to use the Software should be deemed use over an Internal Network. 1.9 "License Metric" means each of the per-unit metrics used by Adobe in connection with the licensed quantities identified as separately provided in writing by Adobe to describe the scope of Licensee's right to use the Software. One or more of the following types of License Metrics applies to each Software Product as further provided herein: (a) Per -Computer. Licensee may install and use the Adobe Output Designer software on no more than the licensed number of Computers. (b) Per -User. The total number of Authorized Users that directly or indirectly request or receive content that has been processed by the Software may not exceed the licensed quantity of users. (c) Per -Server. The total number of Servers on which the Software is installed may not exceed the licensed quantity of Servers. 1.10 "Location" means a specific building or physical location as identified by its unique street address. 1,11 "Production Software" means Software licensed for productive business use. 1.12 "SDK Components" means the sample software code, application programming interface, header files and related information, and the file format specifications, if any, included as part of the Software as described in the Documentation or a "Read Me" file accompanying the applicable Software. 1.13 "Software" means the object code version of the software program(s) specified in a separate written agreement signed by Adobe, including all Documentation and other materials provided by Adobe to Licensee under this Agreement. The term "Software Product" may also be used to indicate a particular product, and otherwise has the same meaning as Software. 2. License. Subject to the terms and conditions of this Agreement, Adobe grants to Licensee a perpetual, non-exclusive license to install and use the Software delivered hereunder according to the terms and conditions of this Agreement, on Computers connected to Licensee's Internal Network, on the licensed platforms and configurations, in the manner and for the purposes described in the Documentation. The following additional terms also apply to Licensee's use of the Software. 2.1 License Metric. Licensee's right to install and use the Software is limited based on whether the Software is licensed as Production Software or Development Software (as separately provided in writing by Adobe) and the License Metrics applicable to the particular Software Products licensed (as separately provided in writing by Adobe) and subject to the terms in Section 3, unless Licensee has licensed the Software for evaluation purposes, in which case the terms of Section 4 apply. 2.2 SDK Components. Licensee's Authorized Users may install and use the SDK Components for purposes of facilitating use of the Software in accordance with this Agreement. Licensee agrees that Licensee will treat the API Information with the same degree of care to prevent unauthorized disclosure to anyone other than Authorized Users as Licensee accords to Licensee's own confidential information, but in no event less than reasonable care. Licensee's obligations tinder this Section 2.2 with respect to the API Information shall terminate when Licensee can document that the API Information was in the public domain at or subsequent to the time it was communicated to Licensee by Adobe through no fault of Licensee's. Licensee may also disclose the API information in response to a valid order by a court or other governmental body, when otherwise required by law, or when necessary to establish the rights of either party under this Agreement, provided Licensee gives Adobe advance written notice thereof. 2.3 Backup and Disaster Recover. Licensee may make and install a reasonable number of copies of the Software for backup and archival purposes and use such copies solely in the event that the primary copy has failed or is destroyed, but in no event may Licensee use such copies concurrently with Production Software or Development Software. Licensee may also install copies of the Software in a Disaster Recovery Environment for use solely in disaster recovery and nor for production, development, evaluation or testing purposes other than to ensure that the Software is capable of replacing the primary usage of the Software in case of a disaster. 2.4 Documentation. Licensee may make copies of the Documentation for use by Authorized Users in connection with use of the Software in accordance with this Agreement, but no more than the amount reasonably necessary. Any permitted copy of the Documentation that Licensee makes must contain the same copyright and other proprietary notices that appear on or in the Documentation. 2.5 Outsourcing. Licensee may sub -license use of the Software to a third party outsourcing or facilities management contractor to operate the Software on Licensee's behalf, provided that (a) Licensee provides Adobe with prior written notice; (b) Licensee is responsible for ensuring that any such contractor agrees to abide by and fully complies with the terns of this Agreement as they relate to the use of the Software on the same basis as applies to Licensee; (c) such use is only in relation to Licensee's direct beneficial business purposes as restricted herein; (d) such use does not represent or constitute an increase in the scope or number of licenses provided hereunder; and (e) Licensee shall remain firlly liable for any and all acts or omissions by the contractor related to this Agreement. 2.6 Font Software. if the Software includes font software, then Licensee may (a) use the font software on Licensee's Computers in connection with Licensee's use of the Software as permitted under this Agreement; (b) output such font software on any output devices connected to Licensee's Computers; (c) convert and install the font software into another format for use in other environments provided that use of the converted font software may not be distributed or transferred for any purpose except in accordance with the transfer section in this Agreement; and (d) embed copies of the font software into Licensee's electronic documents for the purpose of printing and viewing the document, provided that if the font software Licensee is embedding is identified as "licensed for editable embedding" on Adobe's website at http://www.adobe.com/type/browser/legal/embeddingeula.litint, Licensee may also embed copies of that font software for the additional limited purpose of editing Licensee's electronic documents. 2.7 Restrictions (a) No Modifications, No Reverse Engineering. Licensee shall not modify, port, adapt or translate the Software. Licensee shall not reverse engineer, decompile, disassemble or otherwise attempt to discover the source code of the Software. Notwithstanding the foregoing, decompiling the Software is permitted to the extent the laws of Licensee's jurisdiction give Licensee the right to do so to obtain information necessary to render the Software interoperable with other software; provided, however, that Licensee must first request such information from Adobe and Adobe may, in its discretion, either provide such information to Licensee or impose reasonable conditions, including a reasonable fee, on such use of the source code to ensure that Adobe's and its suppliers' proprietary rights in the source code for the Software are protected. (b) No Unbundling. The Software may include various applications, utilities and components, may support multiple platforms and languages and may be provided to Licensee on multiple media or in multiple copies. Nonetheless, the Software is designed and provided to Licensee as a single product to be used as a single product on Computers and platforms as permitted herein. Licensee is not required to use all component parts of the Software, but Licensee shall not unbundle the component parts of the Software for use on different Computers. Licensee shall not unbundle or repackage the Software for distribution, transfer or resale. (c) No Transfer. Licensee shall not sublicense, assign or transfer the Software or Licensee's rights in the Software, or authorize any portion of the Software to be copied onto or accessed from another individual's or entity's Computer except as may be explicitly provided in this Agreement. Notwithstanding anything to the contrary in this Section 2.7(c), Licensee may transfer copies of the Software installed on one of Licensee's Computers to another one of Licensee's Computers provided that the resulting installation and use of the Software is in accordance with the terms of this Agreement and does not cause Licensee to exceed Licensee's right to use the Software under this Agreement. (d) Prohibited Use. Except as expressly authorized under this Agreement, Licensee is prohibited from: (i) using the Software on behalf of third parties; (ii) renting, leasing, lending or granting other rights in the Software including rights on a membership or subscription basis; and (iii) providing use of the Software in a computer service business, third party outsourcing facility or service, service bureau arrangement, network, or time sharing basis. (e) Export Rules. Licensee agrees that the Software will not be shipped, transferred or exported into any country or used in any manner prohibited by the United States Export Administration Act or any other export laws, restrictions or regulations (collectively the "Export Laws"). In addition, if the Software is identified as an export controlled item under the Export Laws, Licensee represents and warrants that Licensee is not a citizen of, or located within, an embargoed or otherwise restricted nation (including Iran, Iraq, Syria, Sudan, Libya, Cuba and North Korea) and that Licensee is not otherwise prohibited under the Export Laws from receiving the Software. All rights to install and use the Software are granted on condition that such rights are forfeited if Licensee fails to comply with the terms of this Agreement. 3. License Metrics and Limitations. 3.1 Adobe Central Output Server. If Licensee has licensed Adobe Central Output Server as Production Software or Development Software (as separately provided in writing by Adobe), then Adobe grants Licensee a license to install and use Adobe Central Output Server on a Per -Server basis, provided that Licensee is not permitted to Deliver output from the Production Software to more than ten (10) Locations per licensed Server. 3.2 Adobe Central Pro Output Server. If Licensee has licensed Adobe Central Pro Output Sewer, then Adobe grants Licensee a license to install and use Adobe Central Pro Output Server either (a) as Production Software on a Per -Server or Per -User basis (as separately provided in writing by Adobe), or (b) as Development Software on a Per -Server basis. When Adobe Central Pro Output Server is licensed as Production Software on a Per -Server basis, Licensee is not permitted to Deliver output from the Software Product to more than ten (10) Locations per licensed Server. 3.3 Adobe Output Pak for mySAP.com. If Licensee has licensed Adobe Output Pak for mySAP.com, then Adobe grants Licensee a license to install and use Adobe Output Pak for mySAP.com solely in connection with Adobe Central Pro Output Server for use with SAP software either (a) as Production Software on a Per -Server or Per -User basis (as separately provided in writing by Adobe), or (b) as Development Software on a Per -Server basis. Licensee's license to Adobe Output Pak for mySAP.com includes a license to install and use Adobe Central Pro Output Server subject to the terms of Section 3.2 of this Agreement. The following additional terms apply: 3.3.1 Per -Server License. If Licensee has licensed Adobe Output Pak for mySAP.com on a Per - Server basis, Licensee shall have the right to install and use Adobe Central Pro Output Server on one (1) Server unless Licensee obtains additional Per -Server licenses to the Adobe Central Pro Output Server. 3.3.2 Per -User License. If Licensee has licensed Adobe Output Pak for mySAP.corn software on a Per -User basis, Licensee must obtain a number of Per -User licenses of Adobe Output Pak for mySAP.com not less than the number of Authorized Users who are authorized to access or use the SAP software. 3.4 Adobe Central Output Server Workstation Edition. If Licensee has licensed Adobe Central Output Server Workstation Edition, then Adobe grants Licensee a license to install and use Adobe Central Output Server Workstation Edition as Production Software on a Per -Computer basis. Licensee's use of the Adobe Central Output Server Workstation Edition shall be limited to use directly or indirectly initiated by an individual person (not an automated process) for the sole purpose of delivering output that has been processed by the Adobe Central Output Server Workstation Edition software to the person that initiated such use. 3.5 Adobe Output Designer. If Licensee has licensed Adobe Output Designer, then Adobe grants Licensee a license to install and use Adobe Output Designer as Production Software on a Per -Computer basis subject to the following additional terms: 3.5.1 Network Use. As an alternative to installing and using the Adobe Output Designer software on the Computer of each licensed Authorized User, Licensee may install and use the Adobe Output Designer software on a file server for the purpose of (a) permitting Authorized Users to download the software for installation and use on no more than the licensed number of Computers connected to Licensee's Internal Network, or (b) permitting Authorized Users to use the software using commands, data or instructions from a Computer connected to Licensee's Internal Network provided that the total number (not the concurrent number) of Authorized Users that use the software does not exceed one user for each of the licensed number of Computers. No other network use is permitted. 3.5.2 Limitation. Licensee shall be prohibited from using the templates, forms and other materials created using the Adobe Output Designer software with any software other than Adobe software. 3.6 Development Software License. This Section 3.6 applies only if Licensee has obtained a valid Development Software license to a Software Product. In addition to the other terms contained herein, Licensee's license to the Development Software is limited to use in Licensee's technical environment strictly for testing and development purposes and not for production purposes. Licensee may (a) install the Development Software on Servers connected to Licensee's Internal Network provided that the total number of Computers used to operate the Development Software does not exceed the licensed amount, and (b) permit Authorized Users to use the Development Software in accordance with this Agreement. 4. Evaluation of Software Products. This Section 4 applies only if Licensee has obtained a valid license to evaluate Software Products as separately provided in writing by Adobe or as indicated by the serial number Licensee enters upon installation. 4.1 License. In addition to the other terms contained herein, Licensee's license to evaluate any Software Product is limited to use strictly for Licensee's own internal evaluation purposes and not for production purposes, and is further limited to a period not to exceed sixty (60) days from the date Licensee obtains the Software Products. Licensee may (a) install the Software Products on one (1) Computer connected to Licensee's Internal Network, and (b) permit Authorized Users to use the Software Products to deliver content within Licensee's Internal Network. Licensee's rights with respect to the Software Products are further limited as described in Section 4.2. 4.2 Limitations. Licensee's rights to install and use Software Products under this Section 4 will terminate immediately upon the earlier of (a) the expiration of the evaluation period described herein, or (b) such time that Licensee purchases a license to a non -evaluation version of such Software Products. Adobe reserves the right to terminate Licensee's license to evaluate Software Products at any time in its sole discretion. Licensee agrees to return or destroy Licensee's copy of the Software Products upon termination of this Agreement for any reason. To the extent that any provision in this Section 4 is in conflict with any other term or condition in this Agreement, this Section 4 shall supersede such other term(s) and condition(s) with respect to the evaluation of Software Products, but only to the extent necessary to resolve the conflict. ADOBE IS LICENSING THE SOFTWARE PRODUCTS FOR EVALUATION ON AN "AS IS" BASIS AT LICENSEE'S OWN RISK. SEE SECTIONS 7 AND 8 FOR WARRANTY DISCLAIMERS AND LIABILITY LIMITATIONS WHICH GOVERN EVALUATION OF SOFTWARE PRODUCTS. S. Intellectual Property Rights. The Software and any copies that Licensee is authorized by Adobe to make are the intellectual property of and are owned by Adobe Systems Incorporated and its suppliers. The structure, organization and code of the Software are the valuable trade secrets and confidential information of Adobe Systems Incorporated and its suppliers. The Software is protected by copyright, including without limitation by United States Copyright Law, international treaty provisions and applicable laws in the county in which it is being used. Except as expressly stated herein, this Agreement does not grant Licensee any intellectual property rights in the Software and all rights not expressly granted are reserved by Adobe. 6. Updates. If the Software is an upgrade or update to a previous version of the Software, Licensee must possess a valid license to such previous version in order to use such upgrade or update. All upgrades and updates are provided to Licensee on a license exchange basis. Licensee agrees that by using an upgrade or update Licensee voluntarily terminates Licensee's right to use any previous version of the Software. As an exception, Licensee may continue to use previous versions of the Software on Licensee's Computer after Licensee uses the upgrade or update but only to assist Licensee in the transition to the upgrade or update, provided that the upgrade or update and the previous versions are installed on the same computer. Upgrades and updates may be licensed to Licensee by Adobe with additional or different terms. 7. WARRANTY 7.1. Warranty. Adobe warrants to Licensee that the Software will perform substantially in accordance with the Documentation for the ninety (90) day period following shipment of the Software when used on the recommended operating system, platform and hardware configuration. This limited warranty does not apply to evaluation software (as indicated in Section 4), patches, sample code, sample files and font software converted into other formats. All warranty claims must be made within such ninety (90) day period. If the Software does not perform substantially in accordance with the Documentation, the entire liability of Adobe and Licensee's exclusive remedy shall be limited to either, at Adobe's option, the replacement ofthe Software or the refund of the license fee paid to Adobe for the Software. 7.2 DISCLAIMER. THE FOREGOING LIMITED WARRANTY IS THE ONLY WARRANTY MADE BY ADOBE AND STATES THE SOLE AND EXCLUSIVE REMEDIES FOR ADOBE'S, ITS AFFILIATES' OR ITS SUPPLIERS' BREACH OF WARRANTY. EXCEPT FOR THE FOREGOING LIMITED WARRANTY, AND FOR ANY WARRANTY, CONDITION, REPRESENTATION OR TERM TO THE EXTENT TO WHICH THE SAME CANNOT OR MAY NOT BE EXCLUDED OR LIMITED BY LAW APPLICABLE IN LICENSEE'S JURISDICTION, ADOBE, ITS AFFILIATES AND ITS SUPPLIERS PROVIDE THE SOFTWARE AS -IS AND WITH ALL FAULTS AND EXPRESSLY DISCLAIM ALL OTHER WARRANTIES, CONDITIONS, REPRESENTATIONS OR TERMS, EXPRESS OR IMPLIED, WHETHER BY STATUTE, COMMON LAW, CUSTOM, USAGE OR OTHERWISE AS TO ANY OTHER MATTERS, INCLUDING PERFORMANCE, SECURITY, NON -INFRINGEMENT OF THIRD PARTY RIGHTS, INTEGRATION, MERCHANTABILITY, QUIET ENJOYMENT, SATISFACTORY QUALITY OR FITNESS FOR ANY PARTICULAR PURPOSE. 8. LIMITATION OF LIABILITY. EXCEPT FOR THE EXCLUSIVE REMEDY SET FORTH ABOVE AND AS OTHERWISE PROVIDED IN SECTION 4, IN NO EVENT WILL ADOBE, ITS AFFILIATES OR ITS SUPPLIERS BE LIABLE TO LICENSEE FOR ANY LOSS, DAMAGES, CLAIMS OR COSTS WHATSOEVER INCLUDING ANY CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES, ANY LOST PROFITS OR LOST SAVINGS, ANY DAMAGES RESULTING FROM BUSINESS INTERRUPTION, PERSONAL INJURY OR FAILURE TO MEET ANY DUTY OF CARE, OR CLAIMS BY A THIRD PARTY EVEN IF AN ADOBE REPRESENTATIVE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS, DAMAGES, CLAIMS OR COSTS. THE FOREGOING LIMITATIONS AND EXCLUSIONS APPLY TO THE EXTENT PERMITTED BY APPLICABLE LAW IN LICENSEE'S JURISDICTION. ADOBE'S AGGREGATE LIABILITY AND THAT OF ITS AFFILIATES AND SUPPLIERS UNDER OR IN CONNECTION WITH THIS AGREEMENT SHALL BE LIMITED TO THE AMOUNT PAID FOR THE SOFTWARE, IF ANY. THIS LIMITATION WILL APPLY EVEN IN THE EVENT OF A FUNDAMENTAL OR MATERIAL BREACH OR A BREACH OF THE FUNDAMENTAL OR MATERIAL TERMS OF THIS AGREEMENT. Nothing contained in this Agreement limits Adobe's liability to Licensee in the event of death or personal injury resulting from Adobe's negligence or for the tort of deceit (fraud). Adobe is acting on behalf of its affiliates and suppliers for the purpose of disclaiming, excluding and limiting obligations, warranties and liability, but in no other respects and for no other purpose. For further information, please see the jurisdiction specific information at the end of this agreement, if any, or contact Adobe's Customer Support Department. 9. Governing Law. This Agreement, each transaction entered into hereunder, and all matters arising from or related to this Agreement (including its validity and interpretation), will be governed and enforced by and construed in accordance with the substantive laws in force in: (a) the State of California, if a license to the Software is purchased when Licensee is in the United States, Canada, or Mexico; or (b) Japan, if a license to the Software is purchased when Licensee is in Japan, China, Korea, or other Southeast Asian country where all official languages are written in either an ideographic script (e.g., hanzi, kanji, or hanja), and/or other script based upon or similar in structure to an ideographic script, such as hangul or kana; or (c) England, if a license to the Software is purchased when Licensee is in any other jurisdiction not described above. The respective courts of Santa Clara County, California when California law applies, Tokyo District Court in Japan, when Japanese law applies, and the competent courts of London, England, when the law of England applies, shall each have non-exclusive jurisdiction over all disputes relating to this Agreement. This Agreement will not be governed by the conflict of law rules of any jurisdiction or the United Nations Convention on Contracts for the International Sale of Goods, the application of which is expressly excluded. 10. General Provisions. If any part of this Agreement is found void and unenforceable, it will not affect the validity of the balance of this Agreement, which shall remain valid and enforceable according to its terms. Updates may be licensed to Licensee by Adobe with additional or different terms. The English version of this Agreement shall be the version used when interpreting or construing this Agreement. This is the entire agreement between Adobe and Licensee relating to the Software and it supersedes any prior representations, discussions, undertakings, communications or advertising relating to the Software. 11. Notice to U.S. Government End Users. 11.1 Commercial Items. The Software and Documentation are Commercial Item(s), as that term is defined at 48 C.F.R. Section 2.101, consisting of "Commercial Computer Software" and "Commercial Computer Software Documentation," as such terms are used in 48 C.F.R. Section 12.212 or 48 C.F.R. Section 227.7202, as applicable. Consistent with 48 C.F.R. Section 12.212 or 48 C.F.R. Sections 227.7202-1 through 227.7202-4, as applicable, the Commercial Computer Software and Commercial Computer Software Documentation are being licensed to U.S. Government end users (a) only as Commercial Items and (b) with only those rights as are granted to all other end users pursuant to the terms and conditions herein. Unpublished -rights reserved under the copyright laws of the United States. Adobe Systems Incorporated, 345 Park Avenue, San Jose, CA 95110-2704. 11.2 U.S. Government Licensing of Adobe Technology. Licensee agrees that when licensing Adobe Software for acquisition by the U.S. Government, or any contractor therefore, Licensee will license consistent with the policies set forth in 48 C.F.R. Section 12.212 (for civilian agencies) and 48 C.F.R. Sections 227-7202-1 and 227-7202-4 (for the Department of Defense). For U.S. Government End Users, Adobe agrees to comply with all applicable equal opportunity laws including, if appropriate, the provisions of Executive Order 11246, as amended, Section 402 of the Vietnam Era Veterans Readjustment Assistance Act of 1974 (38 USC 4212), and Section 503 of the Rehabilitation Act of 1973, as amended, and the regulations at 41 CFR Parts 60-1 through 60-60, 60-250, and 60-741. The affirmative action clause and regulations contained in the preceding sentence shall be incorporated by reference in this Agreement. 12. Compliance with Licenses. Adobe may, at its expense, and no more than once every twelve (12) months, appoint its own personnel or an independent third patty to verify the number of copies and installations, as well as usage of the Adobe software by Licensee. Any such verification shall be conducted upon seven (7) business days notice, during regular business hours at Licensee's offices and shall not unreasonably interfere with Licensee's business activities. Both Adobe and its auditors shall execute a commercially reasonable non- disclosure agreement with Licensee before proceeding with the verification. if such verification shows that Licensee is using a greater number of copies of the Software than that legitimately licensed, or are deploying or using the Software in any way not permitted under this Agreement and which would require additional license fees, Licensee shall pay the applicable fees for such additional copies within thirty (30) days of invoice date, with such underpaid fees being the license fees as per Adobe's then -current, country specific, license fee list. If underpaid fees are in excess of five percent (5%) of the value of the fees paid under this Agreement, then Licensee shall pay such underpaid fees and Adobe's reasonable costs of conducting the verification. 13. Third -Party Beneficiary. Licensee acknowledges and agrees that Adobe's licensors (and/or Adobe if Licensee obtained the Software from any party other than Adobe) are third party beneficiaries of this Agreement, with the right to enforce the obligations set forth herein with respect to the respective technology of such licensors and/or Adobe. Adobe is either a registered trademark or trademark of Adobe Systems Incorporated in the United States and/or other countries. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth below. Tyler Technologies, Inc. City of Round Rock, Texas ERP and Schools Division By: Name: yl'&Ye Title:- Date:-