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R-2015-179 2015-10-12RESOLUTION NO. R2015-179 A Resolution of the City Council of the City of Pearland, Texas, authorizing the procurement of project management software from Atser Systems, Inc., in the amount of $80,000. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Council hereby authorizes the procurement of project management software from Atser Systems, Inc., in the amount of $80,000. Section 2. The City Manager or his designee is hereby authorized to execute a contract for the procurement of project management software from Atser Systems, Inc. PASSED, APPROVED and ADOPTED this the 12th day of October, A.D., 2015. ATTEST: APPROVED AS TO FORM: 411- — D' RIN M. COKER CITY ATTORNEY TOM REID MAYOR Resolution No. R2O15-179 Exhibit " A" RECEIVED 6 2015 ATSER P0.Ie0t •111.111110 Y■ REAL -TINE 1 IY• SOLUTIONS a ICE SUBSCRIPTION AGREEMENT This subscription agreement for ATSER's Project and Program Management solutions ("Agreement") is entered into as of the Effective Date by and between ATSER Systems. Inc., a Texas corporation ("Developer") with its principal office at 1150 Richcrest Dr., Houston, Texas 77060 and City of Pearland("Customer"). WHEREAS, the Developer has developed certain web based software applications and platforms offered together in a suite, that provides for the secure delivery of project and program management solutions from processors hosted remotely by Developer to subscribers under a Solution as a Service arrangement (the "Services"); WHEREAS, the Customer desires to use the Developer's Services in its operations and the Developer has agreed to provide and the Customer has agreed to take and pay for the Developer's Services on a user subscription basis (the "Subscriptions"), subject to the terms and conditions of this Agreement; NOW THEREFORE, In consideration of the mutual promises and agreements contained herein, the parties hereto also agree as follows: 1. Definitions. The following terms shall have the meaning ascribed below. All other capitalized terms used herein without being defined herein shall have the meaning ascribed to such as applicable. "Authorized Named User" or "User" means a unique person, whether an employee, independent contractor, agent or consultant of the Customer who is registered by the Customer (by completing the online Create a New User screen) to enable such person to access the Services and Documentation. Customer is responsible for registering and reporting Authorized Named Users. At a minimum, the following information must be included in the screen to register such person to become a User and access the Services: User ID, First Name, Last Name, and the e-mail address unique to the person registering. Confidential Information means all technical and non-technical information in both tangible and intangible form, including, but not limited to, product design information, software code, technical information, customer information, cost and pricing information, financial information, the terms of this Agreement and the results derived from or methodology employed by Customer in conducting any benchmark testing of the Page 1 of 13 Software; provided that the term "Confidential Information" shall not include information which the recipient can show by reasonable proof (i) to have been known by the recipient prior to the time of disclosure by the disclosing party, (ii) to have become part of the public domain through no fault or breach of this Agreement by the recipient, (iii) to have been disclosed to the recipient in good faith by a third party who is not under any obligation of confidence or secrecy to the disclosing party at the time such third party discloses the information to the recipient or (iv) to have been compelled to be produced by a court of competent jurisdiction, provided that the recipient shall first give notice of any such request or order of the court to give the disclosing party an opportunity to contest or limit said request or order of the court. Customer Data means the data inputted by the Customer or Authorized Named Users on the Customer's behalf for the purpose of using the Services or facilitating the Customer's use of the Services. Customization means revision or adaptation of the Developer Software by Developer to improve the existing functionality of the Software at the Customer's request, including SaaS v.5.2 (Rev. 091015) but not limited to, new features, reports, or updates to current workflow. The scope and cost of such changes shall be agreed upon and signed off by the Customer and Developer in a Quote and Customer will be invoiced and shall pay the Customization fees agreed upon by the parties therein. Documentation means the documents made available by the Developer either online or through other methods to the Customer, from time to time which set out a description of the Services and the user instructions for the Services. Effective Date means the date the last party signs this Agreement. Help Desk means Developer's provision of services to receive technical inquiries via phone calls or other electronic medium and the logging, identification, analysis and routing of such requests to determine if the item is critical, non-critical or requiring Customization. Hosting means the hosting of Customers Data on a Server owned or controlled by Developer. IT Infrastructure means the combined set of developer's software applications, third party licenses, operating system software, hardware, network, and hosting facilities needed to provide access and associated services for the customer's selected user group provided under this Agreement. Maintenance means Developers provision of error correction services and service release patches of third party software and Developer Software, maintenance of the Server and database to keep the Services running smoothly, providing service patches for third party software as needed to maintain current configurations. Monthly User Count means the total number of existing and new Users in a given month regardless of their use throughout the month. Users removed during a given month will be ATSER included in the month and the change will be recognized in the subsequent month. Peak Usage for the User Block means the intended monthly peak use of the Services as represented by the Customer in the Quote or Price Proposal and relied upon by the Developer to prepare the information technology infrastructure which is used to base the Subscription Fees under this Agreement. Election by Customer to increase the peak use may require Customer to purchase an additional User Block of subscriptions. Project means the business project of Customer specified in the Quote. Quote or Price Proposal means (i) Developer's standard quote or price proposal, attached as a Schedule to this Agreement, containing the payment terms for the services to be provided by Developer under this Agreement, as such Quote or Price Proposal may be amended, supplemented or modified from time to time in accordance with this Agreement or (ii) any other non -Developer purchase order delivered by Customer to Developer and approved by the Developer and made part of this Agreement. Server means a device capable of executing the Software, including linkages to any third party applications required by Licensed Software. Services means the subscription services provided by the Developer to the Customer under this Agreement via web based services as more particularly described in the Documentation. Developer Software shall mean the software applications developed and provided by the Developer, and includes any new releases or upgrades, as part of the Services. Features and components of Developer Software are further described in the Documentation or in the attached schedule. Page 2 of 13 SaaS v.5.2 (Rev. 091015) Subscription Fees means the subscription fees set out in the attached Schedule payable by the Customer to the Developer to enable Authorized Named Users to use the Services. Subscription Term means the Services commencing on the Effective Date and continuing thereafter until terminated under one or more of the provisions of this Agreement. The Subscription Term shall include the Initial Term and any Renewal Terms. Support Services means the support provided by Developer in relation to the Services and includes Technical Support and Help Desk. Technical Support means Developer's provision of services to address technical questions and/or data input errors. Developer shall provide a technical support line and email communications during normal business hours for the reporting by the Customer of critical and non-critical items. Training means Developer's plan for providing user training that includes a three (3) level approach: Mobile Device Training, System User Training, and Advanced System Admin Training. Customer may subscribe to Additional Training Services beyond those described in Schedule 1, by executing a Quote that sets forth the fees and other conditions. Payment for Additional Training shall be paid by Customer upon receipt of invoice from Developer in accordance with Section 5 of this Agreement. User Block or User Subscriptions means the number of Authorized Named User Subscriptions purchased by the Customer as a block of Users, pursuant to the fees set forth in the Fee Attachment, Fee Schedule/Quote, which entitle an Authorized Named Users to access and use the Services and the Documentation in accordance with this Agreement. ATSER 2. User Subscriptions. 2.1 User Subscriptions purchased by Customer and the Services to be provided by Developer are set forth in the attached Schedule 1. Subject to the Customer purchasing the User Subscriptions, the Developer hereby grants to the Customer a non-exclusive, non -transferable right to permit the Authorized Named Users to use the Services and the Documentation during the Subscription Term solely for the Customer's internal business operations. User Subscriptions are sold in blocks of Users as further described in attached Schedule. 2.2 In relation to the Authorized Named Users, the Customer undertakes that: (a) the maximum number of Authorized Named Users that it authorizes to access and use the Services and the Documentation shall not exceed the number of User Subscriptions it has purchased from time to time; (b) during any month, if the Monthly User Count exceeds the User Block, Customer shall be required to purchase an additional User Block in accordance with Subscription Fees set forth in the attached Schedule. (b) it will not allow any User Subscription to be used by more than one individual Authorized Named User unless it has been reassigned in its entirety to another individual Authorized Named User, in which case the prior Authorized Named User shall no longer have any right to access or use the Services and/or Documentation; 2.3 Additional User Subscriptions (a) The Customer may, from time to time during any Subscription Term, purchase additional User Subscriptions in excess of the number Page 3 of 13 SaaS v.5.2 (Rev. 091015) set out in Schedule 1 and the Developer shall grant access to the Services and the Documentation to such additional Authorized Named Users . (b) If the Customer wishes to purchase additional User Subscriptions, the Customer shall notify the Developer in writing. The Developer shall evaluate such request for additional User Subscriptions to determine whether such increase will impact the Peak Use for Named User Group and respond to the Customer with approval or disapproval of the request (such approval not to be unreasonably withheld). If approved, the number of User Subscriptions in Schedule 1 shall be revised through a new Quote or Addendum, signed by both parties and made a part of this agreement, to reflect the additional number of User Subscriptions purchased by Customer. (c) If the Developer approves the Customer's request to purchase additional User Subscriptions, the Customer shall, within 30 days of the date of the Developer's invoice, pay to the Developer the relevant fees for such additional User Subscriptions in accordance with the payment provisions set forth in Section 5 of this Agreement, and, if such additional User Subscriptions are purchased by the Customer part way through the Initial Term or any Renewal Term (as applicable), such fees shall be pro- rated for the remainder of the Initial Term or then current Renewal Term (as applicable). 2.4 Scope of Subscription Services The Subscription Services provided by Developer under this Agreement include the following: ATSER "Mlles e• eser nMr I ION (a) Access to Developer Software though web based applications. (b) Software Upgrades to third party software and to Developer Software (c) IT Infrastructure for intended User Block based on Peak Usage. (d) Hosting Services for remote storage of Customer Data (e) Technical Support (f) Help Desk (g) Maintenance (h) User Subscriptions (i) Bandwidth with no limitations per month. (j) Data backups - database backups on a daily basis and restoration of data if required. (k) Third party licenses as identified in the approved Quote. Data Disaster Recovery Plan that includes: • Onsite backup of Customer's latest data that serves as the primary disaster recovery data. • Backup of Customer's latest data to an offsite data center, that serves as a secondary backup • Storage of backup data in an off-site facility equipped with hardware and communications interfaces capable of providing backup operating support. (1) 2.5 Data Transfer. Developer will transfer Customer's data upon Customer's written requests. Should the Customer terminate this Agreement, Customer is solely responsible for the cost associated in migrating a copy of Customer's data to Customer's designated site or third party site along with the cost associated for any third party licenses. Page 4 of 13 SaaS v.5.2 (Rev. 091015) 2.6 Service Level The Developer shall, during the Subscription Term, provide the Services at the levels described below, and make available the Documentation to the Customer on and subject to the terms of this agreement. (1) Guaranteed 99.99% availability of the Services. (2) Guaranteed 4 hours to respond and remedy a fault condition. 3.0 Customer Responsibilities 3.1 Technical Changes Project technical specifications, changes, updates and revisions remain entirely the responsibility of the customer throughout the use of Developer's Software. Customer assumes all responsibility and liability regarding the incorporation, use and status of the required project technical specifications and contract documents incorporated within Developer's Software. Customer is solely responsible for verifying that the appropriate technical specification content, methods and requirements are included within the software throughout the project life. The Developer may be asked to incorporate the technical specifications on behalf of the Customer; however, the liabilities to insure the proper specifications are included and for verifying that the proper technical specifications are utilized remains the Customer's responsibility. The Customer agrees to hold the Developer harmless for changes made to the technical specifications (whether requested by Customer or made by Customer) that are incorporated within Developer's Software. 3.2 Restrictions on Use. (a) In addition to the other ATSER •0I1O1.O OO •101•011116 1 IOO restrictions set forth in this Agreement, the Customer's use of the Services is only for the Customer's internal business use and the Customer has no right to use, grant access to, sell or otherwise transfer or dispose of the Services or use the Software for any other business activity. (b) Unless expressly authorized by Developer in writing, Customer shall not: (i) transfer, sublicense or otherwise assign its rights in the Services to any third -party nor allow any third party to access or use the Services or (ii) distribute, disclose, manufacture, sell, market, rent, lease or transfer to any third party the Services or use the Services in any service bureau arrangement. Customer may allow use and access to the Services to any of its subsidiaries or affiliated companies but solely in connection with work or services performed by such subsidiaries or affiliated companies in respect of the Project. (c) Customer acknowledges and agrees that the rights to the Software and the Documentation and any copies, modifications, alterations or derivative works thereof, and title to any existing or future patents, copyrights, trade secrets, trademarks, service marks and other proprietary rights embodied therein shall remain exclusively with the Developer. The Customer shall not alter or remove any copyright or proprietary rights notice or identification which indicates Developer's rights to any part of the Software or the Documentation, it being expressly understood and agreed that the existence of such copyright notice shall not be construed as an admission or presumption that publication of the Software has occurred. (e) Except to the extent expressly permitted under this agreement, Customer shall not attempt to copy, modify, duplicate, create derivative works from, frame, mirror, republish, download, display, transmit, or distribute all or any portion of the Software and/or Documentation (as applicable) in any form or media or by any means; or Page 5 of 13 SaaS v.5.2 (Rev. 091015) (f) Attempt to reverse compile, disassemble, reverse engineer or otherwise reduce to human -perceivable form all or any part of the Software; or (g) Access all or any part of the Services and Documentation in order to build a product or service which competes with the Services and/or the Documentation. (m) The Customer shall use all reasonable endeavours to prevent any unauthorized access to, or use of, the Services and/or the Documentation and, in the event of any such unauthorized access or use, promptly notify the Developer. 4. Term and Termination. 4.1. Terms. The initial term of this Agreement shall commence upon the Effective Date and shall continue for one year thereafter (the Initial Term). Upon completion of the Initial Term, the Customer shall have the option to renew this Agreement for four additional years in one (1) year increments ((the Renewal Term (s)) by submitting payment for the next Renewal Term in accordance with the renewal payment provision set forth in Payment section 5.1 below. 4.2. Termination for Breach. If either party breaches any material term or condition of this Agreement, the other party shall notify such breaching party in writing of such breach and specify sufficient details regarding such breach. The breaching party shall have thirty (30) days from its receipt of such written notice to remedy the breach specified therein. If the breaching party fails to remedy such breach within such thirty (30) day period, the non -breaching party may immediately terminate this Agreement. 4.3 Termination by Customer. Customer may terminate this Agreement without cause or reason upon thirty (30) days' advance written notice to Developer. Customer shall not be entitled to a refund or credit in respect ATSER •011,1.4 OM 111•111.,11" I IOM of any fees, costs or expenses upon a termination pursuant to this Section 4.3. 4.4 Obligations upon Termination. Upon the termination of this Agreement for any reason, the Customer's right to use the Software and the Documentation or any part thereof shall immediately terminate and Customer shall immediately cease using the Services. Upon such termination, the Customer will as soon as practicable return and make no further use of any equipment, property, Documentation and other items (and all copies of them) belonging to the Developer or provide written certification, in form and substance reasonably acceptable to the Developer, attesting to destruction of the Documentation and any other documents, manuals, data, information or materials furnished by the Developer, as well as any copies thereof and shall destroy any embodiments of these materials stored in or on a reusable electronic or similar medium, including but not limited to memory, disk packs, tape, and other peripheral devices, and document. Termination of this Agreement or of any Subscription Units granted hereunder to Customer or by Developer shall in no event entitle Customer to a refund or credit of any amount paid or payable by Customer. Upon termination of this Agreement, the Developer may destroy or otherwise dispose of any of the Customer Data in its possession unless the Developer receives, no later than thirty days after the effective date of such termination, a written request for the delivery to the Customer of the then most recent back- up of the Customer Data. The Developer shall use reasonable commercial endeavors to deliver the back-up to the Customer within 30 days of its receipt of such a written request, provided that the Customer has, at that time, paid all fees and charges outstanding at and resulting from termination (whether or not due at the date of termination). The Customer shall pay all reasonable expenses incurred by the Developer in returning or disposing of Page 6 of 13 SaaS v.5.2 (Rev. 091015) Customer Data; The accrued rights of the parties as at termination, or the continuation after termination of any provision expressly stated to survive or implicitly surviving termination, shall not be affected or prejudiced 5. Payment. 5.1 Fees. Upon execution of this Agreement by both parties, Developer shall deliver an invoice to Customer specifying the fees, payable pursuant to the Agreement or Quote. Customer shall pay the fees specified in such invoice. Customer shall pay fees for renewal year options forty-five days prior to the then current term expiring. All fees payable by Customer with respect to any Customization or additional training beyond that described in Schedule 1 (Additional Training) may be separately invoiced. Customer's payment obligation with respect to Subscription Fees owing hereunder shall be independent of the provision of Customization and or Additional Training, whether or not such services are separately invoiced. Any late payment of any amount owing hereunder shall accrue interest at a rate equal to the lesser of (i) 15% per annum, or (ii) the maximum rate permitted by law. 5.2 Taxes. All taxes and duties attributable to this Agreement, including sales, use and any other tax assessed by local, state or federal authorities, shall be borne by the Customer. If any such taxes are to be paid by the Developer, the Customer shall, upon demand, reimburse the Developer for any such taxes and duties. The Customer shall have no responsibility for the Developer's income taxes. 6. Confidentiality. 6.1 Developer's Confidential Information. Customer acknowledges that the Software and Documentation contain valuable proprietary information and trade secrets of the Developer and embody substantial creative Page 7 of 13 ATSER efforts. The Customer agrees to take all reasonable steps necessary to protect the confidentiality of all Confidential Information disclosed by Developer and shall not use such Confidential Information other than in connection with its authorized use of the Services. Such reasonable steps include but are not limited to agreeing not to sell, transfer, publish, disclose, display or distribute any Confidential Information to any third party or permit any competitor or potential competitor of Developer to access, in any manner, any of the Confidential Information or copies thereof, or any part thereof, in any form whatsoever. Customer shall be responsible for any breach of this Section 6 by any of its employees, agents, independent contractors, guests or Authorized Named Users. The Customer agrees to notify the Developer promptly and in writing upon the Customer becoming aware of any breach of this Section 6. 6.2 Customer's Confidential Information. Developer agrees to take all reasonable steps necessary to protect the confidentiality of all Confidential Information disclosed by Customer, including Customer's data, and shall not use such Confidential Information other than in connection with its performance of Developer's obligations or exercise of its rights under this Agreement. 7. Warranties and Remedies. 7.1. Limited Warranties. If at any time during the term of this Agreement, the Services fail to perform substantially as described in the Documentation, Customer shall promptly notify Developer of such nonconformance and to the extent that such nonconformance exists and is not caused by any of the circumstances set forth in Section 7.2 below. Developer shall (A) use all commercially reasonable efforts to correct such nonconformance within thirty (30) days of notification or (B) provide Customer within thirty (30) days of notification with a plan acceptable to Customer for correcting such SaaS v.5.2 (Rev. 091015) nonconformance. If such nonconformance is not corrected or if an acceptable plan for correcting such nonconformance is not established, Developer shall refund to Customer the amount paid for the User Subscription units during the time period Services were not available. Customer acknowledges that this Section 7.1(b) sets forth Customer's sole and exclusive remedy, and Developer's sole and exclusive liability, for any breach of warranty or other failure of the Services to function properly. 7.2 Problems Not Caused by the Developer. The limited warranty set forth in paragraph 7.1. shall not apply if a claimed problem is caused by: (a) the malfunction of computer hardware or other software not provided by the Developer, (b) Customer's negligence or fault, (c) Customer's material failure to follow the instructions set forth in the Documentation, (d) changes in the operating software or other hardware or software that is not authorized by the Developer, or (e) modifications to or changes in the Software not made by or authorized in writing by the Developer. 7.3 Exclusive Warranties & DISCLAIMER. The limited warranty in Section 7.1, as limited by Section 7.2 above, is exclusive and in lieu of all other warranties. Developer makes no other warranty, express or implied. ALL IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY EXCLUDED. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 7, ALL OTHER REPRESENTATIONS, WARRANTIES, AND GUARANTEES WITH RESPECT TO THE LICENSED MATERIAL AND DOCUMENTATION, WHETHER EXPRESS OR IMPLIED, ARISING BY LAW, CUSTOM, PRIOR ORAL OR WRITTEN STATEMENTS BY DEVELOPER OR ITS AUTHORIZED REPRESENTATIVES OR OTHERWISE ARE HEREBY OVERRIDDEN AND DISCLAIMED. 7.4 Breach of Confidentiality or ATSER Restrictions on Use. The parties agree that if either party shall violate or breach, or threaten to violate or breach, any of their agreements in paragraph 6 (or if the Customer shall violate or breach, or threaten to violate or breach, the provisions of paragraph 3), that monetary damages alone shall not be adequate and that either party shall be entitled to a temporary or permanent injunction or any other appropriate decree of specific performance or equitable relief (without being required to post any bond or other security) from a court of competent jurisdiction in order to prevent, prohibit or restrain any such breach or violation, or threatened breach or violation. Resort by either to such injunctive or other equitable relief shall not be deemed to waive or limit in any respect any other rights or remedies which such party may have with respect to such breach or violation. 8. EXCLUSION OF CONSEQUENTIAL OR INCIDENTAL DAMAGES. 8.1 UNDER NO CIRCUMSTANCES WILL DEVELOPER OR ITS AUTHORIZED REPRESENTATIVES BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR INCIDENTAL DAMAGES, WHETHER FORESEEABLE OR UNFORESEEABLE, BASED ON CLAIMS BY CUSTOMER OR ANY THIRD PARTY (INCLUDING, BUT NOT LIMITED TO, CLAIMS FOR LOSS OF DATA, GOODWILL, PROFITS, USE OF MONEY OR USE OF THE PRODUCTS, INTERRUPTION IN USE OR AVAILABILITY OF DATA, STOPPAGE OF OTHER WORK OR IMPARIMENT OF OTHER ASSETS), ARISING OUT OR RELATED TO THIS AGREEMENT, INCLUDING CLAIMS OF NEGLIGENCE, STRICT LIABILITY IN TORT OR OTHERWISE, EXCEPT ONLY IN THE CASE OF PERSONAL INJURY WHERE AND TO THE EXTENT THAT APPLICABLE LAW REQUIRES SUCH LIABILITY. 8.2 IN NO EVENT WILL THE AGGREGATE CUMMULATIVE LIABILITY INCURRED BY DEVELOPER IN ANY ACTION OR Page 8 of 13 SaaS v.5.2 (Rev. 091015) PROCEEDING BY CUSTOMER OR ITS AUTHORIZED REPRESENTATIVES EXCEED THE TOTAL AMOUNTS ACTUALLY PAID BY CUSTOMER TO DEVELOPER UNDER THIS AGREEMENT. 9. Indemnification. The Developer shall defend, indemnify and hold the Customer harmless from all claims, demands, liabilities, obligations, cost and expenses (including reasonable attorney's fees) arising out of, or based upon, any claim that the any of the Services provided by Developer violates, misappropriates or infringes any US copyright, patent, trademark, trade secret or other intellectual property right of any third party; provided that the Developer is given prompt written notice of and detailed information with regard to any such claim, suit or proceeding by the Customer. Developer may, at its option, in respect of such matters modify the Services to be non -infringing (while substantially preserving its utility or functionality), or (a) Substitute a functionally equivalent non -infringing software ;or, (b) Modify such Software so that it no longer infringes but remains functionally equivalent; or, (c) Obtain for Customer at Developer's expense the right to continue to use the Services; or. (d) If these alternatives are not commercially reasonable, Developer may end this Agreement and refund any unused, prepaid fees to the Customer. 10. Entire Agreement. This Agreement contains the entire agreement between the Developer and the Customer for the Services granted hereunder and supersedes all prior or contemporaneous oral or written understandings, negotiations and agreements between the Developer and the Customer with respect hereto. No amendment or modification to this Agreement ATSER •0110100 •0 0001.1100 I 100 or to either party's rights or obligations hereunder may be made in any manner (including, without limitation, by reference to usage of trade or other regular practice or method of dealing either within the computer industry or between the parties hereto) other than in a writing signed by both parties hereto. EACH PARTY ACKNOWLEDGES AND AGREES THAT, AS A CONVENIENCE TO CUSTOMER AND ONLY FOR CUSTOMER'S INTERNAL ACCOUNTING PROCEDURES, CUSTOMER MAY DELIVER TO DEVELOPER A CUSTOMER INVOICE OR CUSTOMER PURCHASE ORDER OR OTHER SIMILAR DOCUMENT FOR ANY TRANSACTION CONTEMPLATED HEREUNDER AND THAT NO ACTION BY DEVELOPER, INCLUDING DEVELOPER'S DELIVERY OF ANY LICENSED SOFTWARE OR ACCEPTANCE OF PAYMENT, SHALL BE DEEMED TO BE ACCEPTANCE OF ANY OF THE TERMS OR CONDITIONS CONTAINED IN SUCH CUSTOMER INVOICE OR CUSTOMER PURCHASE ORDER OR OTHER SIMILAR INSTRUMENT AND SUCH TERMS AND CONDITIONS SHALL BE VOID AND OF NO FORCE OR EFFECT. 11. General Provisions. 11.1 Waivers and Limitation of Actions. No action or claim, including, without limitation, any claim for indemnification, regardless of form, arising out of the transactions contemplated herein may be brought by either party more than two (2) years after the cause of action has accrued. 11.2 Force Majeure. If either party shall be delayed in its performance of any obligation hereunder or be prevented entirely from performing any such obligation due to causes or events beyond its control, including without limitation any act of God, fire, strike or other labor problem, legal action, present or future law, government order, rule or regulation, such delay or non-performance shall be excused and the time for performance shall be extended to include the period of such delay or non-performance. Page 9 of 13 SaaS v.5.2 (Rev. 091015) 11.3 Notices. All notices shall be made in writing and shall be deemed given or made on the date delivered if delivered in person, on the date initially received if delivered by telecopy transmission (with machine generated transmittal confirmation) followed by certified mail or reputable overnight courier, on the date delivered by an overnight courier service or on the third (3rd) business day after it is mailed if mailed by certified mail (return receipt requested, with postage and other fees prepaid) to the parties at the addresses indicated below (or at such other addresses as shall be given in writing by either of the parties to the other, if given in accordance with the terms of this paragraph 11.3). Customer: City of Pearland COMPANY ADDRESS 3519 Liberty Drive CITY/ZIP Pearland, TX 77581 PHONE (281) 652-1734 CONTACT Ms. Susan Johnson Developer: ATSER Systems, Inc., 1150 Richcrest Drive Houston, TX 77060 Attn: Chuck Shih, Ph.D., V.P. Fax: (281) 999.9962 11.4 Invalid Provision. In the event that any provision hereof is found invalid or unenforceable pursuant to judicial decree, the remainder of this Agreement shall remain valid and enforceable according to its terms. 11.5 Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the substantive laws of the State of Texas without giving effect to any choice of law rules. DEVELOPER AND CUSTOMER HEREBY IRREVOCABLY AGREE ON BEHALF OF THEMSELVES THAT THE SOLE AND EXCLUSIVE JURISDICTION AND ATSER VENUE FOR ANY LITIGATION ARISING FROM OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTTER HEREOF SHALL BE IN AN APPROPRIATE FEDERAL OR STATE COURT IN THE STATE OF TEXAS LOCATED IN HARRIS COUNTY. 11.6 Assignment. This Agreement shall be binding exclusive upon the respective parties hereto and their successors and permitted assignees. The rights granted to the Customer by this Agreement or any duty or obligation of performance hereunder shall not be assigned, sublicensed, or otherwise transferred by the Customer, either voluntarily or by operation of law; provided that customer may assign its rights hereunder to any company in which Customer owns more than fifty percent (50%) of the voting securities of such company with written consent of the Developer. Any attempt by the Customer to assign, sublicense, or transfer any of the rights, duties, or obligations hereunder except as expressly provided by this Agreement is null and void. 11.7 Independent Contractor. The Developer, in rendering performance hereunder, is acting solely as an independent contractor and not as an agent of the Customer. 11.8 Paragraph Headings. The paragraph and subparagraph headings used herein are for reference and convenience only and shall not enter into the interpretation hereof. 11.9 Further Assurances. After the date hereof, each party hereto will take_all such further actions, and sign all such further documents, as may be required to confirm and effectuate the terms of this Agreement. 11.10 Survival. Sections, 6, 7.3, 8, 10 and 11 shall survive any termination of this Agreement. Page 10 of 13 SaaS v.5.2 (Rev. 091015) ATSER [SIGNATURE PAGE FOLLOWS] Page 11 of 13 SaaS v.5.2 (Rev. 091015) ATSER 00110100 ON 0001-t1•0 1 10 IN WITNESS WHEREOF, Developer and Customer have executed this Agreement on DAY, the xxth day of MONTH, 2015, by their duly authorized representatives identified below. CUSTOMER: NAME Sign s" re Cl ay"Pts soy Printed Name Title klataciez ID . I A • 15 Date C.E.O. Signature Title D. Fred Martinez, Ph.D.. P.E. 10/12/2015 Printed Name Date Page 12 of 13 SaaS v.5.2 (Rev. 091015) ATSER SCHEDULE 1 FEES Page 13 of 13 SaaS v.5.2 (Rev. 091015) ATBER SUILSINS ON ■ l A t• i 1 N l INIONMATION Customer Project Name Description Contact Address Phone Email Item 1.0 2.0 3.0 Ci of Pearland Manage -IT Susan Johnson 3519 Liberty Drive Pearland, TX 77581 281.652.1734 SJohnson@pearlandtx.gov Licenses Manage -IT subscription Named User (NTE), 60 month period) Support Services Annual Software Maintenance, Help Desk, Technical Support, per Service Agreement Annual Hosting,per Hosting Agreement Additional Services 4.0 Customization, hour Quote # Quote Date : Quote Expires: Transaction Type License: SLA Tax Status: Payment terms: Term NTP Date: Term End Date: Units Unlimited Annual 201510-11 9/9/2015 Annual 10/30/2015 Direct SaaS 100 Normal Business Hours Non Exempt Due upon execution of contract 10/12/2015 10 11 2020 Standard Price $55,000 $25,000 Included ATSER Systems, Inc. Erika Mills Buisness Development 1150 Richcrest Drive Houston, Texas 77060 Ph. (281) 925-8216 Fax (281) 999-9962 emillsCcilatser.com Included Special Notes: 1. Subscription Term: 60 Months 2. Limited Term Subscription for unlimited users 3. IT Infrastructure assumes a 10 concurrent user simultaneous printing capability. 4. Support during normal business hours, Central Standard Time. (1.2/5) 5. Request for Help Desk, Maintenance, and Technical Support should be communicated through 2 Customer points of contact. 6. Hourly Rates are for 2015 only and w ill be adjusted annually to Consumers Price Index as published by the US Federal Government. 7. Ninety (90) days from contract execution date Customer accepts softw are "AS IS". Payment Terms: 1. Initial Payment (first year) is due upon execution of the contracts. 2. Support Service Fees are due/moble 45 days before the iversary date of the NTP date identified w ithin this quote. 3. Does not include taxes an a'. by client -•,f-d. 111SUIMIMMEI Date ***Please Sign and fax back to 281-999-9962 Total 1st Year Quoted Price $55,000 $25,000 Included Included $80,000 Subsequent Yrs $25,000 5 Year Total $180,000 Title CEO Monday, September 21, 2015