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6 <br /> Kronos Incorporated <br /> 297 Billerica Road <br /> Chelmsford,MA 01824 Page:1/5 <br /> Phone:(978)250-9800 <br /> KRONOS SALES,SOFTWARE LICENSE AND SERVICES AGREEMENT Rev KR-022811.1 <br /> City of Everett("Customer")and Kronos agree that the terms and conditions'set forth in this Agreement shall apply to all Kronos Equipment,Software,Professional and <br /> Educational Services,Support,and such other Kronos offerings,as specified on an order form(an"Order Form")signed by the parties which expressly references this <br /> Agreement(or is signed contemporaneously hereto). <br /> Kronos and Customer hereby agree that the terms and conditions of this Agreement apply to any Order Form executed by Kronos and Customer which expressly <br /> references this Agreement(including any Order Form signed contemporaneously with this Agreement regardless of the appearance of any express reference to this <br /> Agreement). Either party may discontinue use of this Agreement for future orders upon thirty(3 0)days prior written notice to the other party,provided however that any <br /> Order Form signed by the parties prior to the effective date of such notice shall remain in effect unless otherwise specifically terminated in accordance with the terms of <br /> this Agreement. Kronos may require additional terms and conditions for the sale or license of products or services not contemplated by this Agreement(including without <br /> limitation those that may be related to international services)provided that no such additional terms and conditions shall be binding upon Customer without Customer's <br /> prior written consent. Notwithstanding,Kronos will not be obligated to accept or approve an order for any products or services for which such additional terms and <br /> conditions are required. All orders are subject to the approval of Kronos'corporate office in Chelmsford,Massachusetts. This Agreement and the Order Form shall <br /> supersede the pre-printed terms of any Customer purchase order or other Customer ordering document,and no such Customer pre-printed terms shall apply to the items <br /> ordered. <br /> 1. PAYMENT AND DELNERY <br /> Unless otherwise set forth in this Agreement,payment terms are indicated on the Order Form or other contemporaneous ordering document containing product-specific <br /> payment terms signed by the parties.Delivery terms are as stated on the Order Form("Delivery"). Kronos will invoice Customer for products upon Delivery. Unless . <br /> otherwise set forth on the Order Form,Professional and Educational Services are provided on a time and materials basis,invoiced monthly as rendered. Customer agrees <br /> to pay all applicable taxes levied or based on the products,services or other charges hereunder,including state and local sales and excise taxes,and any taxes or amount in <br /> lieu thereof paid or payable by Kronos,exclusive of taxes based on net income. Customer agrees to pay a late charge of one percent(1%)per month,(but not in excess of <br /> the rate allowed by law),on any overdue amounts not the subject of a good faith dispute.If full payment is not made within 90 days of final payment due date,Customer is <br /> responsible for all expenses,including legal fees,incurred by Kronor for collection. <br /> 2. GENERAL LICENSE TERMS <br /> Kronos owns or has the right to license the Software.The Software and Software documentation are confidential and may not be disclosed to a third party without Kronos' <br /> written consent The Software contains proprietary trade secret technology.Unauthorized use and copying of such Software is prohibited by law,including United States <br /> and foreign copyright law.The price Customer pays for a copy of the Software constitutes a license fee that entitles Customer to use the Software as set forth below.Kronos <br /> grants to Customer a non-exclusive,nontransferable,perpetual(except as provided herein)license to use the Software.This license may be terminated by Kronos by <br /> • written notice to Customer upon any material breach of this Agreement by Customer which remains uncured for a period of thirty(30)days after such written notice from <br /> Kronos.Upon such termination of this license by Kronos,Customer will have no further right to use the Software and will return the Software media to Kronos and destroy all <br /> copies of the Software(and related documentation)in Customer's possession or controL This license is subject to all of the terms of this Agreement. <br /> 3. Ebb BASED LIMITATIONS <br /> Customer recognizes and agrees that the license to use the Software is limited,based upon the amount of the license fee paid by Customer.Limitations,which are set forth <br /> on the Order Form,may include the number of employees,simultaneous or active users,Software product modules,Software features,computer model and serial number <br /> and partition,and/or the number of telephone lines or terminals to which the Software is permitted to be connected.Customer agrees to:i)use the Software only for the <br /> number of employees,simultaneous or active users,computer model,partition and serial number,and/or terminals permitted by the applicable license fee;ii)use only the <br /> product modules and/or features permitted by the applicable license fees;and iii)use the Software only in support of Customer's own business.Customer agrees not to <br /> increase the number of employees,simultaneous or active users,partitions,terminals,products modules,features,or to upgrade the model,as applicable,unless and until <br /> Customer pays the applicable fee for such increase/upgrade.Customer may not relicense or sublicense the Software to,or otherwise permit use of the Software(including <br /> timesharing or networking use)by any third party.Customer may not provide service bureau or other data processing services that make use of the Software without the <br /> express prior written consent of Kronos. <br /> 4. OBJECT CODE ONLY <br /> Customer may use the computer programs included in the Software(the"Programs")in object code form only,and shall not reverse compile,disassemble or otherwise convert • <br /> the Programs into uncompiled or unassembled code. The Programs include components owned by third parties. Such third party components are deemed to be Software <br /> subject to this Agreement Customer shall not use any of the Programs(or the data models therein)except solely as part of and in connection with the Software and as <br /> described in the published documentation for such Software. <br /> 5. PERMITTED COPIES <br /> Customer may copy the Programs as reasonably necessary to load and execute the Programs and for backup and disaster recovery and testing purposes only,except for <br /> additional copies of the Teletime Software and the Kronos iSeries(which must be licensed separately). All copies of the Programs or any part thereof,whether in printed or <br /> machine readable form and whether on storage media or otherwise,are subject to all the terms of this license,and all copies of the Programs or any part of the Programs shall <br /> include the copyright and proprietary rights notices contained in the Programs as delivered to the Customer. <br /> • <br /> 6. UPDATES <br /> In the event that Kronos supplies Service Packs,Point Releases and Major Releases(including legislative updates if available)of the Software(collectively referred to as <br /> "Updates"),such Updates shall be part of the Software and the provisions of this license shall apply to such Updates and to the Software as modified thereby. <br /> 7. EXPORT <br /> Customer acknowledges that the Equipment and Software may be restricted by the United States Government or by the country in which the Equipment or Software is <br /> installed from export to certain countries and certain organi7ntions and individuals,and agrees to comply with such laws. Customer agrees to comply with all applicable <br /> laws of all of the countries in which the Equipment and Software may be used by Customer and shall indemnify Kronos for any noncompliance which results in damages <br /> or liability for Kronos. Customer's obligations hereunder shall survive the termination or expiration of this Agreement Customer must obtain Kronos'prior written <br /> consent before exporting the Software. ' <br /> • <br /> 8. FIRMWARE <br /> Customer may not download firmware updates for the Kronos Equipment unless Customer is maintaining such Equipment under a support plan with Kronos.If Customer is <br /> not maintaining the Equipment under a support plan with Kronos,Kronos shall have the right to verify Customer's Kronos Equipment to determine if Customer has <br /> downloaded any firmware to which Customer is not entitled. If Customer has downloaded firmware for the Kronos Equipment to which Customer is not entitled, <br /> Customer shall be responsible to pay Kronos for such updated firmware in accordance with Kronos'then-current support policies. <br /> 24 <br />