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HomeMy WebLinkAboutContract 38230 CITY SECRETARY NO, �3L3 _ Contract between City of Fort Worth and Identix Incorporated 1.0 DEFINITION OF BUYER - The City of Fort Worth, its officers, agents, servants, employees, contractors and subcontractors that are authorized to act on behalf of various City departments, bodies or agencies. 2.0 DEFINITION OF SELLER - The consultant, contractor, supplier, vendor or other provider of goods and/or services, its officers, agents, servants, employees, contractors and subcontractors who act on behalf of the entity under a contract with the City of Fort Worth. 3.0 PUBLIC INFORMATION - Any information submitted to the City of Fort Worth (the "City") could be requested by a member of the public under the Texas Public Information Act. See TEX. Gov'T CODE ANN. §§ 552.002, 552.128(c) (West Supp. 2006). If the City receives a request for a Seller's information, the Seller listed in the request will be notified and given an opportunity to make arguments to the Texas Attorney General's Office (the "AG") regarding reasons the Seller believes that its information may not lawfully be released. If Seller does not make arguments or the AG rejects the arguments Seller makes, Seller's information will be released. 4.0 PROHIBITION AGAINST PERSONAL INTEREST IN CONTRACTS - No officer or employee of Buyer shall have a financial interest, direct or indirect, in any contract with Buyer or be financially interested, directly or indirectly, in the sale to Buyer of any land, materials, supplies or services, except on behalf of Buyer as an officer or employee. Any willful violation of this section shall constitute malfeasance in office, and any officer or employee found guilty thereof shall thereby forfeit his office or position. Any violation of this section with the knowledge, expressed or implied, of the person or corporation contracting with the City Council shall render the contract invalid by the City Manager or the City Council. (Chapter XXVII, Section 16, City of Fort Worth Charter) 5.0 ORDERS - 5.1 No employees of the Buyer or its officers, agents, servants, contractors and subcontractors who act on behalf of various City departments, bodies or agencies are authorized to place orders for goods and services without providing approved contract numbers, purchase order numbers, or release numbers issued by the Buyer. The only exceptions are Purchasing Card orders and bona fide emergencies. In the case of emergencies, the Buyer's Purchasing Division will place such orders. 5.2 Acceptance of an order and delivery on the part of the Seller without an approved contract number, purchase order number, or release number issued by the Buyer may result in rejection of delivery, return of goods at the Seller's cost and/or non-payment. 02-1 1 -09 A 18 : 28 I N p � �r Contract between City of Fort Worth and Identix Incorporated "`_" _a.--fie 1 of 8 6.0 SELLER TO PACKAGE GOODS - Seller will package goods in accordance with good commercial practice. Each shipping container, shall be clearly and permanently marked as follows: (a) Seller's name and address: (b) Consignee's name, address and purchase order or purchase change order number; (c) Container number and total number of container, e.g., box 1 of 4 boxes; and (d) Number of the container bearing the packing slip. Seller shall bear the cost of packaging unless otherwise provided. Goods shall be suitably packed to secure lowest transportation costs and to conform to requirements of common carriers and any applicable specifications. Buyer's count or weight shall be final and conclusive on shipments not accompanied by packing lists. 7.0 SHIPMENT UNDER RESERVATION PROHIBITED - Seller is not authorized to ship the goods under reservation, and no tender of a bill of lading will operate as a tender of goods. 8.0 RISK OF LOSS - The risk of loss of the goods shall not pass to Buyer until Buyer actually receives and takes possession of the goods at the point or points of delivery after inspection and acceptance of the goods. 9.0 DELIVERY TERMS AND TRANSPORTATION CHARGES — Freight terms shall be F.O.B. Destination, Freight Prepaid and Allowed, unless delivery terms are specified otherwise in Seller's bid. Buyer agrees to reimburse Seller for transportation costs in the amount specified in Seller's bid or actual costs, whichever is lower, if the quoted delivery terms do not include transportation costs; provided, Buyer shall have the right to designate what method of transportation shall be used to ship the goods. 10.0 PLACE OF DELIVERY - The place of delivery shall beset forth in the "Ship to" block of the purchase order, purchase change order, or release order. 11.0 RIGHT OF INSPECTION - Buyer shall have the right to inspect the goods upon delivery before accepting them. Seller shall be responsible for all charges for the return to Seller of any goods rejected as being nonconforming under the specifications. 12.0 INVOICES - 12.1 Seller shall submit separate invoices in duplicate, on each purchase order or purchase change order after each delivery. Invoices shall indicate the purchase order or purchase change order number. Invoices shall be itemized and transportation charges, if any, shall be listed separately. A copy of the bill of lading and the freight waybill, when applicable, should be attached to the invoice. Seller shall mail or deliver invoices to Buyer's Department and address as set forth in the block of the purchase order, purchase change order or release order entitled "Ship to." Payment shall not be made until the above instruments have been submitted after delivery and acceptance of the goods and/or services. 12.2 Seller shall not include Federal Excise, State or City Sales Tax in its invoices. The Buyer shall furnish a tax exemption certificate. Contract between City of Fort Worth and Identix Incorporated Page 2 of 8 13.0 PRICE WARRANTY - 13.1 The price to be paid by Buyer shall be that contained in Seller's bid which Seller warrants to be no higher than Seller's current prices on orders by others for products of the kind and specification covered by this agreement for similar quantities under like conditions and methods of purchase. In the event Seller breaches this warranty, the prices of the items shall be reduced to Seller's current prices on orders by others, or in the alternative upon Buyer's option, Buyer shall have the right to cancel this contract without liability to Seller for breach or for Seller's actual expense. The aforementioned remedies constitute Buyer's sole and exclusive remedies for Seller's breach of this warranty. 13.2 Seller warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for commission, percentage, brokerage or contingent fee, excepting bona fide employees of bona fide established commercial or selling agency is maintained by Seller for the purpose of securing business. Buyer's sole remedy for Seller's breach of this warranty shall be to cancel this contract without liability. 14.0 INDEMNIFICATION. Seller shall indemnify, defend and hold harmless Buyer from and against all liabilities, damages, costs or expenses (including reasonable attorney's fees) payable or paid by Buyer to third parties resulting from any final judicial decision without opportunity for appeal arising from claims by such third parties that any use of the products provided pursuant to the contract by Buyer in accordance with the provisions of the contract infringes any currently issued and validly existing United States patent, United States trademark, copyright or trade secret of such third parties. Buyer shall promptly notify Seller of any such claim or proceeding and shall not settle any such claim or proceeding without Seller's prior written consent. Seller shall have the right to control the defense of any such claim. Buyer shall have the right at its expense to participate in the defense thereof with counsel of its choice, provided that Seller shall have the right at all times to retain or resume control of the conduct of such defense. If equitable relief is threatened or obtained against the use by Buyer as a direct result of any product, Seller will, at its option and expense, either (i) procure for Buyer the right under such copyright or trademark to license or use as appropriate, the product; (ii) replace the product with other suitable, functionally-equivalent and non-infringing products; (iii) modify the product so as to make it non-infringing without substantially reducing its utility; or (iv)terminate the contract with immediate effect upon written notice to Buyer and (a) in the case of software products, refund the license fees paid by Buyer to Seller for the allegedly infringing materials during the 12 month period immediately prior to the date Buyer received notice of any threat of equitable relief or (b) in the case of hardware products, accept the return of all products that are the subject of the claim and refund the amount paid by Buyer to Seller for such items during the 12 month period immediately prior to the date Buyer received notice of any threat of equitable relief. In any event, the foregoing obligation of Seller does not apply with respect to products (i) made in whole or in part in accordance to Buyer's specifications. (ii) modified after shipment by Seller, if the alleged infringement relates to such modification. (iii) which are combined Contract between City of Fort Worth and Identix Incorporated Page 3 of 8 with other products, processes or materials where the alleged infringement relates to such combination, (iv) to the extent that Buyer continues allegedly infringing activity after being notified thereof or after being informed of modifications that would have avoided the alleged infringement, or (v) where Buyer's use of the products is not strictly in accordance with the license granted herein or the intended use of such products." 15.0 CANCELLATION - Buyer shall have the right to cancel this contract immediately for default on all or any part of the undelivered portion of this order if Seller breaches any of the terms hereof, including warranties of Seller, or if Seller files for bankruptcy. Such right of cancellation is in addition to and not in lieu of any other remedies, which Buyer may have in law or equity. 16.0 TERMINATION - The performance of work under this order may be terminated in whole or in part by Buyer, with or without cause, at any time upon the delivery to Seller of a written "Notice of Termination" specifying the extent to which performance of work under the order is terminated and the date upon which such termination becomes effective. Such right of termination is in addition to and not in lieu of rights of Buyer as set forth in clause 13, herein. 17.0 ASSIGNMENT - DELEGATION -No right, interest or obligation of Seller under this contract shall be assigned or delegated without the written agreement of Buyer' Purchasing Manager. Any attempted assignment or delegation of Seller shall be wholly void and totally ineffective for all purposes unless made in conformity with this paragraph. 18.0 WAIVER - No claim or right arising out of a breach of this contract can be discharged in whole or in part by a waiver or renunciation of the claim or right unless the waiver or renunciation is supported by consideration in writing and is signed by the aggrieved party. 19.0 MODIFICATIONS - This contract can be modified or rescinded only by a written agreement signed by both parties. 20.0 INTERPRETATION AND PRIOR EVIDENCE - This writing is intended by the parties as a final expression of their agreement and is intended also as a complete and exclusive statement of the terms of their agreement. No course of prior dealings between the parties and no usage of trade shall be relevant to supplement or explain any term used in this agreement. Acceptance of or acquiescence in a course of performance under this agreement shall not be relevant to determine the meaning of this agreement even thought the accepting or acquiescing party has knowledge of the performance and opportunity for objection. Whenever a term defined by the Uniform Commercial Code (UCC) is used in this agreement, the definition contained in the UCC shall control. 21.0 APPLICABLE LAW - This agreement shall be governed by the Uniform Commercial Code wherever the term "Uniform Commercial Code" or "UCC'' is used. It shall be construed as meaning the Uniform Commercial Code as adopted and amended in Contract between City of Fort Worth and Identix Incorporated Page 4 of 8 the State of Texas. Both parties agree that venue for any litigation arising from this contract shall be in Fort Worth, Tarrant County, Texas. This contract shall be governed, construed and enforced under the laws of the State of Texas. 22.0 INDEPENDENT CONTRACTOR - Seller shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of Buyer. Seller shall have exclusive control of, and the exclusive right to control, the details of its operations hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors and sub- contractors. The doctrine of respondent superior shall not apply as between Buyer and Seller, its officers, agents, employees, contractors and subcontractors. Nothing herein shall be construed as creating a partnership or joint enterprise between Buyer and Seller, its officers, agents, employees, contractors and subcontractors. 23.0 INDEMNIFICATION: Seller agrees to defend, indemnify and hold harmless Buyer from and against any liability, damages, fees, expenses and costs (including defense costs) resulting from third party claims, demands and lawsuits (each a "Claim") for personal injury, death or damage to property that become payable or are paid by Buyer to third parties resulting from any final judicial decision, without opportunity for appeal, to the extent such liability results from the negligent, willful misconduct or other unlawful acts or omissions of Seller, its personnel or agents in the course of the rendering of the services. Buyer shall notify Seller within ten (10) days of receiving notice or becoming aware of any such Claim and shall not settle any such Claim without Seller's prior written consent. Seller shall have the right to control the defense of any such Claim. Buyer shall have the right at its own expense to participate in the defense thereof with counsel of Buyer's choice; provided, however, that Seller shall have the right at all times to retain or resume control of the conduct of such defense. In any event, the foregoing obligation of Seller does not apply with respect to any Claim that arises out of Buyer's own negligence, willful misconduct or other unlawful acts or omissions. Under no circumstances will Seller's obligation or liability under this indemnification obligation exceed the aggregate amount of fees for the services paid by Buyer to Seller under this Agreement. 24.0 SEVERABILITY - In case any one or more of the provisions contained in this agreement shall for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this agreement, which agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 25.0 FISCAL FUNDING LIMITATION - In the event no funds or insufficient funds are appropriated and budgeted or are otherwise available by any means whatsoever in any fiscal period for payments due under this contract, then Buyer will immediately notify Seller of such occurrence and this contract shall be terminated on the last day of the fiscal period for which appropriations were received without penalty or expense to Buyer of any kind whatsoever, except to the portions of annual payments herein agreed upon for which funds shall have been appropriated and budgeted or are otherwise available. Contract between City of Fort Worth and Identix Incorporated Page 5 of 8 26.0 NOTICES TO PARTIES - Notices addressed to Buyer pursuant to the provisions hereof shall be conclusively determined to have been delivered a the time same is deposited in the United States mail, in a sealed envelope with sufficient postage attached, addressed to Purchasing Manager, City of Forth Worth, Purchasing Division, 1000 Throckmorton, Fort Worth, Texas 76102, and notices to Seller shall be conclusively determined to have been delivered at the time same is deposited in the United States mail, in a sealed envelope with sufficient postage attached, addressed to the address given by Seller in Identix Incorporated's Maintenance Agreement Addendum Quotation, (Quote ID K-2664-5). 27.0 NON-DISCRIMINATION - This contract is made and entered into with reference specifically to Chapter 17, Article III, Division 3 ("Employment Practices"), of the City Code of the City of Fort Worth (1986), as amended, and Seller hereby covenants and agrees that Seller, its employees, officers, agents, contractors or subcontractors, have fully complied with all provisions of same and that nb no employee, participant, applicant, contractor or subcontractor has been discriminated against according to the terms of such Ordinance by Seller, its employees, officers, agents, contractor or subcontractors herein. 28.0 RIGHT TO AUDIT - Seller agrees that the Buyer shall, until the expiration of three (3) years after final payment under this contract, have access to and the right to examine and copy any directly pertinent books, computer disks, digital files, documents, papers and records of the Seller involving transactions relating to this contract. Seller agrees that the Buyer shall have access, during normal working hours, to all necessary Seller facilities, and shall be provided adequate and appropriate workspace, in order to conduct audits in compliance with the provisions of this section. Buyer shall pay Seller for reasonable costs of any copying Buyer performs on Seller's equipment or requests Seller to provide. The Buyer shall give Seller reasonable advance notice of intended audits. 29.0 In accordance with the provisions of the Americans With Disabilities Act of 1990 (ADA), Seller warrants that it will not unlawfully discriminate on the basis of disability in the availability, terms and/or conditions of employment for applicants for employment with, or employees of Seller. Seller warrants it will fully comply with the ADA' s provisions and any other applicable federal, state and local laws concerning disability and will defend, indemnify and hold harmless Buyer from and against any liability, damages, fees, expenses and costs (including defense costs) resulting from third party claims, demands and lawsuits (each a "Claim") for Seller's alleged failure to comply with above- referenced laws concerning disability discrimination in the availability, terms and/or conditions of employment with Seller that become payable or are paid by Buyer to third parties resulting from any final judicial decision, without opportunity for appeal, to the extent such liability results from the negligent, willful misconduct or other unlawful acts or omissions of Seller, its personnel or agents in the course of the rendering of the services. Buyer shall notify Seller within ten (10) days of receiving notice or becoming aware of any such Claim and shall not settle any such Claim without Seller's prior written consent. Seller shall have the right to control the defense of any such Claim. Buyer shall Contract between City of Fort Worth and Identix Incorporated Page 6 of 8 have the right at its own expense to participate in the defense thereof with counsel of Buyer's choice; provided, however, that Seller shall have the right at all times to retain or resume control of the conduct of such defense. In any event, the foregoing obligation of Seller does not apply with respect to any Claim that arises out of Buyer's own negligence, willful misconduct or other unlawful acts or omissions. Under no circumstances will Seller's obligation or liability under this indemnification obligation exceed the aggregate amount of fees for the services paid by Buyer to Seller under this Agreement. 30.0 INCORPORATION BY REFERENCE — The terms of(1) Identix Incorporated's Maintenance Agreement Addendum Quotation, (Quote ID K-2664-S) and (2) Identix Incorporated System Maintenance Terms and Conditions, attached as Exhibits "A" and "B," are incorporated into this contract the same as if fully set forth herein. 31.0 ORDER OF PRECEDENCE — In the event of any conflict between (1) this document (Contract between City of Fort Worth and Identix Incorporated), (2) Identix Incorporated's Maintenance Agreement Addendum Quotation, (Quote ID K-2664-S) and (3) Identix Incorporated System Maintenance Terms and Conditions, the documents will control in the following order of precedence: 1. This document (Contract between City of Fort Worth and Identix Incorporated); and then 2. Identix Incorporated's Maintenance Agreement Addendum Quotation, (Quote ID K-2664-S); and then 3. Identix Incorporated System Maintenance Terms and Conditions. ACCEPTANCE AND DELIVERY ON THE PART OF THE VENDOR WITHOUT AN APPROVED PURCHASE ORDER MAY RESULT IN REJECTION OF DELIVERY, RETURN OF GOODS AT THE VENDOR'S COST AND NON-PAYMENT. PLEASE ENSURE ALL EMPLOYEES ARE AWARE OF THIS CITY OF FORT WORTH POLICY. CITY OF FORT WORTH IDENTIX Tom Higgins Assistant City Manager (� Date: Z���/O9 Date: I Z l I O Contract between City of Fort Worth and Identix Incorporated Page 7 of 8 ATTEST: City Secretary Date: 1-2 L Contract Authorization Contract No. M&C No. /C&r /26qtt2&0 APPROVED AS TO FORM AND L Z L TY, " t I v 14 Led" Assistant City Attorney Date: Contract between City of Fort Worth and Identix Incorporated Paae 8 of 8 -p 'v W 0 W py m 2 -_{ Z m � � � � o O � m � o O n r D -n O � D > '� '� w O c ? w O c 0 r o '; :::::::: v m -� m y rn v 5 1, rmmm co n z xo ;� rm 66 c n 3 z X D n z D C � U� o �Z sNN0 = b � � No r cnM p r m Cl) 3 0 —I Z _ 00 CD n p D � D z L!1 -q m h .� 0000aD rz O O xtmx o � 4 d z z Xa m -n -n n �o a�o -On r � ° C CD O O $ `^T _ CrJ SU � ;o ;o IDS X C O O O O N a O ;o_ ;o_ z O ^ 0 6 D a 0 D D o z M m Z Z r Z Z r W C z z n z z n c a m D D m D D m r r O r r O -� a a _0� � O a � ; -" > a K >D K v D r 0 r m m -zi m m � � m � C7 < z z cn z z cn Z Z0 m m m C-)O D 0 m z m m m C D ' x ;rl X n m = Z ❑ � M � -+ v o Dzrr-- � KWp0 ,o m Om z rmmmm -< c -+ Z z o = -� v < w m w w M 10 O w w -0 D cn m O D O O C O O 9) O -zi m Z C O O N p m N N X f C ON N p- 1 N N Z w W w -n W co N c O K 0 ;o c W m r a X D D F1 -� � cn Z O n D = v 0 M 0 v, D v v C7 rZV -i p D D p D m z � m m m m � r m G -3 -< m x z o o cn00 � c- o 9 G) r— z cn x ►� m m m rMmrn 0 m W rn rn rn 00 C) -P L 641) 69 N O6 m O O co O O C Cn � T Ul � O (n Co rn p °o o° °o o° a o0 00 m n m m m m z 6_)(_k - Y] IDENTIX INCORPORTED SYSTEM MAINTENANCE TERMS AND CONDITIONS for use with U.S. End User Customers covering Identix®Live Scan Product Line I. GENERAL SCOPE OF COVERAGE tariffs, taxes, and all other delivery related charges. Subject to payment in full of the applicable • Identix shall make available to Customer one maintenance fees for the system ("System") described copy (in electronic or other standard form) of in Identix Incorporated's ("Identix") current each Update (defined herein) for those System Maintenance Agreement Addendum ("Addendum") components that are developed by Identix and with customer ("Customer"), Identix, or its authorized for which Identix, in its sole discretion, elects agents or subcontractors, shall provide the System to develop and generally make available to maintenance services ("Services") set forth and in customers whose Systems are under warranty accordance with the terms herein (this "Agreement") or under a current Identix Maintenance and the Addendum. The terms of the Addendum are Agreement Addendum. Customer shall hereby incorporated into this Agreement by this provide Identix with continuous network or reference. dial-up access to the System (whether stand alone or connected to a central site), and H. MAINTENANCE SERVICES Identix shall deliver the Update via this remote means of delivery. In the event continuous The Services provided by Identix are those services network or dial-up access is not available for selected by Customer from one or more of the 2417 Maintenance Services and 915 following maintenance services programs: Maintenance Services Customers, then Identix shall install the Update during any A. Included With All Remedial Maintenance Services. subsequently scheduled on-site visit by Identix Included With All Remedial Maintenance Services are for service of the System. An "Update"means as follows: a new release of such System software • Unlimited 24/7 telephone technical support for components that are developed by Identix System hardware and software from the which contain (i) bug fixes, corrections, or a Identix TouchCare Support Center via Identix work-around of previously identified errors toll free telephone number. with such software, or (ii) minor • TouchCare Support Center managed problem enhancements, improvements, or revisions escalation, as required, to Identix' technical with substantially similar (but not new) support staff to resolve unique problems. functionality to the original licensed System • Identix shall furnish all parts and components software. necessary for the service and maintenance of the System. Replacement parts shall be sent to B. 24/7 Maintenance Services. Identix' 2417 the Customer. All replaced defective parts Maintenance Services are as follows: shall become Identix' property. Identix shall • Customer will receive a telephone response to determine if a replacement part is necessary. service calls within one (1) hour from the time Replacement parts and components may be the Customer places a service call with new or refurbished. Unless otherwise agreed Identix' Help Desk. by Identix, replacement parts and components • Identix' Help Desk will attempt problem needed at international destinations shall be resolution via telephonic verbal and dial-in shipped by Identix to the Customer-specified troubleshooting prior to dispatching an Identix United States destination, and the Customer field service engineer to Customer's facility shall arrange for shipment of the parts and for on-site service. components to the final international • If on-site service is necessary, such service destination. In the event Identix ships shall be provided 24/7, including holidays. replacement parts and components to an Identix shall use its best efforts to have an international destination, the Customer shall be Identix' field service engineer at the responsible for all shipping expenses, duties, Customer's facility within four (4) hours from the time the engineer is dispatched by Identix' Version]/2007/21 March2007 l Help Desk for customers located within a 100 development effort. In such event, Identix mile radius of an authorized Identix' service will provide Customer with a quote for location and within 24 hours for customers developing and providing Customer with any located outside such 100 mile radius. such applications and changes. Table updates • At no additional charge, Identix will provide are treated as Updates and will be made Customer with up to four (4) Customer- available to Customer in accordance with requested type of transaction changes to Section II.A. of this Agreement. existing type of transaction applications; provided, however, that any such type of D. Help Desk Maintenance Services. Identix' Help transaction change does not, in the sole Desk Maintenance Services are as follows: opinion of Identix' Development • The Services do not include any Identix on-site Management Team, require a significant maintenance services. The Customer agrees to development effort. In such event, Identix provide the on-site personnel to assist the will provide Customer with a quote for Identix Help Desk with troubleshooting, developing and providing Customer with any module replacement, and installation of such applications and changes. Table updates Updates,as required. are treated as Updates and will be made • Customer shall maintain at least one (1) available to Customer in accordance with Identix trained System manager on the Section II.A. of this Agreement. Customer's System support staff during the term of such Services period contained in the C. 9/5 Maintenance Services. Identix' 915 applicable Addendum, and such Customer Maintenance Services are as follows: System manager shall be responsible for • Customer will receive a telephone response to periodically backing-up System software in service calls within one (1)hour from the time accordance with Identix' periodic Customer places a service call with Identix' requirements. Unless otherwise agreed in Help Desk. writing by Identix, the Customer shall be • Identix' Help Desk will attempt problem responsible for the installation of each Update. resolution via telephonic verbal and dial-in • Customer will receive a telephone response to troubleshooting prior to dispatching an Identix service calls within one (1)hour from the time field service engineer to Customer's facility the Customer places a service call with for on-site service. Identix' Help Desk. • If on-site service is necessary, such service • Identix shall furnish all parts and components shall be provided nine (9) business hours (that necessary for the maintenance of the System. is, 8:00 a.m. to 5:00 p.m.) per day, five Identix' shipment of a replacement part to business days per week. Identix shall use its Customer will be initiated promptly after the best efforts to have an Identix' field service Identix' Help Desk determines the need for engineer at Customer's facility within eight(8) such item. Replacement part orders initiated working hours from the time the engineer is prior to 3:00 p.m. Central shall be shipped the dispatched by Identix' Help Desk if same business day, where orders initiated after Customer's facility is located within a 100 3:00 p.m. Central shall be shipped the next mile radius of an authorized Identix' service business day. All shipments are made via next location and within 24 hours if Customer's day priority air. facility is located outside such 100 mile radius. • If a defective part is required by Identix to be • Upon Identix' acceptance of Customer's returned to Identix, the packaging material request for after hours service, Customer shall used in shipment of the replacement part must pay for such after hours service on a time and be reused to return the defective part. [Note: materials basis at Identix' then current rates. defective parts are not repaired and returned to • At no additional charge, Identix will provide Customer. Customer will be invoiced for any Customer with up to four (4) Customer- defective parts that are not returned to Identix requested type of transaction changes to within two (2) weeks after receipt of the existing type of transaction applications; replacement part. Identix is not responsible for provided, however, that any such type of any markings (i.e., asset tags) that Customer transaction change does not, in the sole may place on System components. It is opinion of Identix' Development Customer's responsibility to remove such Management Team, require a significant markings.] Version 1/2007/21 March2007 2 • Upon Customer's request for Identix on-site components not authorized by Identix are fitted to service, Identix shall use its best efforts to have the System. an Identix field service engineer at the • Maintenance required due to failures caused by Customer's facility within 48 hours from the Customer or Customer's software or other time the engineer is dispatched by Identix' software, hardware or products not licensed by Help Desk. Customer shall pay for such on- Identix to Customer. site service on a time and travel basis at • Providing or installing updates or upgrades to any Identix' then current rates and travel policies, third party(i.e., Microsoft,Oracle, etc.) software. respectively. Prior to dispatch of an Identix • Providing consumable parts and components (i.e., engineer, Customer shall either provide Identix platens, toner cartridges, etc.); such items are with a purchase order ("P.O."), complete replaced at the Customer's expense. Identix' P.O. Waiver form, or provide Identix . Maintenance required due to failures resulting with a valid credit card number. from software viruses, worms, Trojans, and any other forms of destructive or interruptive means E. Preventive Maintenance Services. Identix' introduced into the System. Preventive Maintenance Services are as follows: • Maintenance required due to failures caused by • Preventive maintenance service calls consist of Customer facility issues such as inadequate power System cleaning, verification of calibration, sources and protection or use of the System in and verification of proper System environmental conditions outside of those configuration and operation in accordance with conditions specified in Identix' System Identix' specifications for such System. documentation. Identix and Customer will seek to agree upon the scheduling of the preventive maintenance B. Availability of Additional Services. At Customer's service call promptly after commencement of request, Identix may agree to perform the excluded the term of this Agreement and the services described immediately above in accordance commencement of any renewal term. with Identix' then current rates. Other excluded • Preventive maintenance service calls are only services that may be agreed to be performed by Identix available in connection with Identix' 24/7 shall require Identix' receipt of a Customer P.O., Maintenance Services and Identix' 9/5 Customer's completion of Identix' P.O. Waiver form, Maintenance Services offerings. Preventive or Customer providing Identix with a valid credit card maintenance service calls are priced on a per number before work by Identix is commenced. call basis in accordance with Identix' then current published prices for such Services. C. Non-Registered System Components. Any System Preventive Maintenance Services may not be components not registered in the Addendum for which available for certain System components. Services are requested by Customer may be required to have a pre-maintenance inspection by Identix before III. EXCLUSIONS FROM SERVICES being added to the Addendum and this Agreement. This inspection will also be required if this Agreement A. Exclusions. The Services do not include any of the has expired by more than thirty (30) days. Identix' following: inspection will be billed at Identix' current inspection • System relocation. rate plus travel expenses and parts(if any required). • Additional training beyond that amount or level of training originally ordered by Customer. D. Third Part' Hardware and Software. Customer • Maintenance support or troubleshooting for shall be solely responsible for obtaining from Identix Customer provided communication networks. or an Identix authorized or identified vendor, at • Maintenance required to the System or its parts Customer's sole expense: (i) all Identix and third party arising out of misuse, abuse, negligence, software that may be required for use in connection attachment of unauthorized components (including with any Updates, major enhancements or new software), or accessories or parts, use of sub- versions; and (ii) all hardware that may be required for standard supplies, or other causes beyond Identix' the use of any Updates, major enhancements or new control. versions. Identix will specify the hardware and third • Maintenance required due to the System being party software requirements for any Updates. modified, damaged, altered, moved or serviced by personnel other than Identix' authorized service IV. SERVICE CALLS representatives, or if parts, accessories, or Version 1/2007/21 March2007 3 Customer may contact Identix' TouchCare Support Identix shall provide the Services hereunder in a Center by calling 1-888-HELP-IDX (888-435-7439). professional and workmanlike manner by duly Service calls under this Agreement will be made at the qualified personnel. EXCEPT FOR THIS LIMITED installation address identified in the Addendum or as WARRANTY, IDENTIX HEREBY DISCLAIMS otherwise agreed to in writing. ALL WARRANTIES, EXPRESS AND IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE V. TERM AND TERMINATION IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE IN This term of this Agreement shall commence upon REGARD TO THE SERVICES, SOFTWARE, AND Identix' receipt of the annual maintenance fee reflected ANY OTHER GOODS PROVIDED HEREUNDER. in the Addendum and shall continue for a period of one IN NO EVENT SHALL IDENTIX' AGGREGATE (1) year. This Agreement may be renewed for LIABILITY TO CUSTOMER ARISING OUT OF,OR additional one (1) year terms upon the parties' mutual RELATED TO, THIS AGREEMENT, UNDER ANY agreement and Customer's execution of an updated CAUSE OF ACTION OR THEORY OF RECOVERY, Addendum and Identix' receipt of the applicable EXCEED THE NET FEES FOR IDENTIX' annual maintenance fee reflected in the updated SERVICES ACTUALLY PAID BY CUSTOMER TO Addendum. Either party may terminate this IDENTIX UNDER THE APPLICABLE Agreement in the event of a material breach by the ADDENDUM TO THIS AGREEMENT DURING other party that remains uncured for a period of thirty THE TWELVE (12) MONTHS PRIOR TO THE (30) days from the date the non-breaching party DATE THE CUSTOMER'S CAUSE OF ACTION provided the other with written notice of such breach. AROSE. IN NO EVENT SHALL IDENTIX BE LIABLE TO CUSTOMER FOR ANY INDIRECT, VI. FEES FOR SERVICES SPECIAL, INCIDENTIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING, BUT NOT A. Fees. The initial fee for Services under this LIMITED TO, LOST PROFITS OR REVENUE; Agreement shall be the amount set forth in the LOSS, INACCURACY, OR CORRUPTION OF Addendum. The annual maintenance fee during any DATA OR LOSS OR INTERRUPTION OF USE; OR renewal term will be Identix' current rates in effect at FOR ANY MATTER BEYOND IDENTIX' the time of renewal. Customer agrees to pay the total REASONABLY CONTROL,EVEN IF ADVISED OF of all charges for Services annually in advance within THE POSSIBILITY OF SUCH DAMAGES. NO thirty (30) days of the date of Identix' invoice for such ACTION, REGARDLESS OF FORM, MAY BE charges. Customer understands that alterations, BROUGHT BY CUSTOMER MORE THAN TWO attachments, specification changes, or use of sub- (2) YEARS AFTER THE DATE THE CAUSE OF standard supplies that cause excessive service calls, ACTION AROSE. may require an increase in Service fees during the term of this Agreement at the election of Identix, and VIII. LIMITED LICENSE TO UPDATES Customer agrees to promptly pay such charges when due. Identix may deliver Identix-developed Updates to Customer. The terms of Identix' end user license for B. Failure to Pam. If Customer does not pay the Identix' software delivered as part of the System Identix' fees for Services or parts as provided shall govern Customer's use of the Updates. hereunder when due: (i) Identix may suspend performance of its obligation to provide Services until IX. MISCELLANEOUS the account is brought current; and (ii) Identix may, at its discretion, provide the Services at current "non This Agreement shall be governed by and construed contract/per call" rates on a COD basis. Customer according to the laws of the State of Minnesota, agrees to pay Identix' costs and expenses of collection excluding its conflict of laws provisions. This including the maximum attorneys' fee permitted by Agreement constitutes the entire agreement between law (said fee not to exceed 25% of the amount due the parties regarding the subject matter described hereunder). herein and may not be modified except in writing signed by duly authorized representatives of Identix VII. LIMITED WARRANTY / DISCLAI_MER / and the Customer. This Agreement may not be LIMITATION OF LIABILITY assigned by Customer without the prior express written consent of Identix. Version 1/2007/2 1 March2007 4