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AGREEMENT TO IMPLEMENT SELF-CHECKOUT SYSTEMAGREEMENT THIS AGREEMENT is made and entered into this .,day of May 2010, Y - > by Vernon Library Supplies, Inc. d/b/a Integrated Technology Group, a corporation in the State of Georgia, USA (hereinafter referred to as "ITG") and The City of Clearwater, a municipal corporation, located at 112 S. Osceola Avenue, Clearwater, FL, 33756 (hereinafter referred to as "Customer"). RECITALS WHEREAS, Customer desires to implement Self-Checkout systems on its premises, and; WHEREAS, ITG is willing to provide such products and services that together comprise the systems listed above and is willing to provide such products and services pursuant to all the terms and conditions in the Agreement; NOW THEREFORE, in consideration of the mutual covenants of the parties, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, ITG and Customer have agreed and do hereby enter into this Agreement according to the provisions set forth herein: WITNESSETH: In the event of conflicting provisions, all documents shall be construed according to the following priories: 1. any properly executed amendment or change order to this contract (most recent with first priority), and 2. this contract, and 3. any attachments included with this contract. TERM AND TERMINATION Term The Effective Date of commencement of this Agreement shall be the _10_day of _May_, 2010. The Term of this Agreement shall begin on the Effective Date and shall extend for the full length of the period necessary to complete the project, unless terminated earlier under one of the termination provisions contained in this Agreement. Termination a. This Agreement may be terminated by Customer upon thirty (30) days written notice to ITG should ITG fail to perform in accordance with all the terms of this Agreement. b. This Agreement may be terminated at any time by the mutual written agreement of ITG and Customer. X c. Regardless of reason for termination, Customer is responsible for payment for all products and services delivered according to the terms and conditions of this Agreement up until the date of termination of this Agreement. DUTIES OF ITG 1. ITG agrees to provide the products and services (hereinafter collectively referred to as the "Work") as listed in its quotation (Attachment 1) and as such products and services are described in document entitled "ITG Express Check Components" (Attachment 2). 2. Except where explicitly noted and agreed to by the Customer upon receipt of proper waivers, ITG will comply with all local laws, ordinances and regulations bearing on the performance of the Work. 3. ITG shall enforce good order and discipline among its employees and subcontractors, if any, and shall keep work areas reasonably free from waste materials and rubbish resulting from its operations. 4. ITG shall deliver products and perform its services as expeditiously as is consistent with professional skill and care and the orderly progress of the Work. 5. ITG will compensate all company employees and subcontractors, if used, for all work performed in the execution of the project. 6. ITG will have the authority to act on behalf of the Customer only to the extent provided in this Agreement unless otherwise modified by written instrument. 7. ITG will supply Customer with written invoices according to the payment schedule specified in the Agreement or, if not specified, following shipment of products to the Customer. Unless otherwise stated and agreed to in writing, ITG is not responsible for the collection or payment of any duties, excise, sales, use property, retailers, occupation, business or similar tax. The amount of any such taxes which are payable in accordance with the provisions of any statute or rules, regulations or decision of any taxing authority, will be paid by the Customer. 8. ITG agrees that title to all Work covered by an invoice for payment will pass to the Customer upon receipt of such payment. 9. ITG warrants products in accordance with the warranty attached to this Agreement (Attachment 3). 10. ITG agrees to support and maintain products during the first year of operation in accordance with document entitled "Annual Maintenance and Support for ITG Products" (Attachment 4). 11. Following the first year, ITG agrees to continue to support and maintain products supplied under this Agreement for the period(s) specified in the Maintenance and Equipment Lifecycle Policy (Attachment S), on a year by year basis, contingent upon the Customer's payment in advance for such support and maintenance. 12. ITG represents that in the performance of the work, duties and obligations assumed by it under this Agreement that it is acting and performing as an independent contractor and shall act in an independent capacity and not as an officer, agent, servant, employee, joint venturer, partner, or associate of the Customer. 13. ITG agrees to indemnify and hold harmless Customer from all claims and suits for loss of or damage to property, including loss of the use thereof, or injuries including death to persons, and from all judgments recovered therefore, and from all expense in defending said claims or suits, including court costs, attorney fees and other expenses, caused by an act or omission of ITG and/or its subcontractors, their respective agents, servants and employees working on the project and not caused by the fault or negligence of the Customer. 14. Without limiting its liability under this Agreement, ITG will maintain at its expense during the life of this Agreement Workman's Compensation insurance as mandated by law and comprehensive General Liability insurance in amounts no less than: Bodily Injury Each Person - $1,000,000 Bodily Injury Each Occurrence - $2,000,000 Property Damage Each Occurrence - $1,000,000 Customer will be named as an additional insured and noted as such on each policy. DUTIES OF CUSTOMER 1. Customer will inspect all products immediately upon delivery, noting damage to external packaging and/or contents on the delivery receipt or bill of lading. Customer will immediately notify ITG of such damage. Customer understands that failure to immediately report damage may result in the inability to file claims with the shipper or insurance companies. Damages not covered as a result of the Customer's failure to examine or report are the full responsibility of the Customer. 2. Customer will issue to ITG purchase orders in writing for the products and services listed in Attachment 1, noting desired delivery dates that will not be earlier than 60 (or other) days following receipt of the purchase order by ITG. 3. Unless noted otherwise on the purchase order, Customer will be prepared to receive products from the date of its purchase order. The spccific date for delivery and commencement of installation shall be agreed upon in consultation between the Customer and ITG. Should the Customer, due to delays in construction or for any other reason, not be prepared to accept delivery on or before the stated desired delivery date on the purchase order, ITG will delay without penalty the shipment of product for up to two weeks following that date as long as no cost-incurring changes are required in the ITG technician's installation schedule. If, after two weeks following the stated desired delivery date, the customer is still not ready to accept delivery, ITG will delay shipment of the products on condition that the Customer remit payments as if shipment and installation had taken place at the latest possible dates that fall within this two week period: 35% of the total contract 7 days following the date of the delivery specified on the purchase order and 15% 14 days following the date of delivery specified on the purchase order. In all cases, the Customer will be fully responsible for all costs incurred by ITG as a result of a change in the ITG technician's installation schedule. 4. Customer will accept delivery of products delivered to its truck high dock during normal business hours. If Customer does not have a truck high dock or can accept deliveries only during specified hours, it must note these and any other special delivery requirements on its purchase order. The absence of a truck high dock and the presence of special delivery costs may result in increased delivery costs, for which the Customer will be fully responsible. 5. Customer will remit payment in U.S. Dollars to ITG in no more than 30 days following the date of invoice. Interest will accrue on the amount due at the rate of two percent (2%) per month for each full calendar month or part thereof during which such amount shall be outstanding, such interest to commence to accrue on the fifteenth (15`h) day after such amount is due and payable. If this interest rate exceeds the maximum interest rate permitted by law, then the interest payable shall be at such maximum permissible rate. 6. If Customer claims exemption from any taxes imposed by any taxing authority, Customer will save ITG harmless from any such tax, together with any interest, fines, or penalties thereon, which may at any time be assessed against it by reason of the fact that such Work or portion thereof is held to be taxable by the taxing authority. In the event that the Customer is exempt from such taxes or should Customer elect to pay such taxes directly to the taxing authority, then Customer shall provide ITG with a valid tax exemption certificate or similar document in form satisfactory to ITG. 7. Customer will remit payment for supplies and accessories (e.g. RFID tags, cover labels, receipt paper, and other items that are not part of the core system(s)) following the date of shipment. 8. Customer will remit payment for hardware, software and other services according to following Payment Schedule: Payrnent' Schedule Phase Perr004 >f?otal Payment Execution of Contract 25% 60 days prior to expected installation date 25% Completion of Installation and Training 40% Final Acceptance 10% 9. Customer is responsible for supplying materials, equipment and services as described in document entitled "ITG Express Check Components" (Attachment 2). 10. Customer is responsible for security and paying for all licenses and permits required for the execution of the work. 11. Customer will designate a primary and secondary contact person for the purpose of coordinating with ITG representatives all technical aspects and implementation of the system(s). 12. Individuals designated above will promptly provide to ITG all information needed by ITG for implementation of the system. 4 4?L 13. Customer warrants that the project is located on real property owned by the Customer and that access to such real property will be furnished to ITG at such times and on such dates as ITG may reasonably require in connection with the execution and completion of the Work. Customers will provide a clear path for access to and from the installation site for personnel and equipment. Customer will ensure that not later than the scheduled start of installation date, the installation site is free and clear, that all civil work and necessary removal or modifications of existing equipment or buildings is concluded, and that all necessary Customer provided infrastructure, including but not limited to electrical and network connections, is in place according to ITG specifications. Customer will be fully responsible for all costs associated with the failure of the Customer to meet these requirements. These costs include, but are not limited to, additional work performed by ITG to prepare the site, additional time required for installation and training, and the additional costs associated with required travel. 14. Customer understands that the proper performance of the system depends upon a thorough understanding and implementation of the installation and operating instructions provided by ITG. Customer is responsible for insuring that all staff, volunteers and others who perform services at the Customer's behest are fully trained in the operation of the system components with which they are working. 15. Customer will immediately report all system problems to ITG. 16. At ITG's request, Customer will generate system reports as may be needed by ITG and, if requested, maintain a log detailing all problems experienced with the system. 17. Customer will not modify hardware or software or move equipment without first consulting with 1TG. 18. Customer will maintain the confidentiality of all information, be it in written, unwritten, or any other form, provided it by ITG. Only such information as may be necessary for Customer's agents to perform their duties shall be shared with such agents. 19. Customer represents that ITG software is the intellectual property of ITG and is protected by law, including copyright laws and international treaties. Copies of software may not be made without the expressed written consent of an ITG representative authorized to legally obligate the company. 20. Customer shall take all reasonable steps to protect ITG's intellectual property rights. MISCELLANEOUS Force Majeure. The parties to this Agreement will not be liable for any delay or failure to perform their obligations if that failure or delay is due to any cause or condition beyond the control of that party and, in particular, without limitation, any failure, damage or loss due to fire, flood, exposure or any act of God, industrial disturbance, failure of electrical telecommunications networks, acts of vandalism, sabotage, civil services, war, changes in legislation or regulations of any government or governmental agency, refusal or revocation of any license or consent by the government of any authority. 5 2(- 2. Limitation of Liability. The liability of ITG, its agents, employees, subcontractors and supplies with respect to any and claims arising out of the performance or non-performance of obligations under the Contract Documents, or the design, manufacture, sales, delivery, installation or use of the Work or materials or the condition of other services hereunder irrespective of the theory upon which any claim may be based, including, without limitation, breach of the Contract Documents, breach of warranty or tort (including negligence), indemnity, strict liability or otherwise (i) shall in no event include consequential, indirect, special or similar damages including, but not limited to, loss of profits or revenue, or loss of business, and Customer hereby irrevocably waives any right it may have to any damages in excess of actual and incidental and (ii) except with respect to indemnity claims for personal injury (including death) or damage to property of third parties, shall in no event exceed in the aggregate 100% of the Purchase Price or the scope and limits of insurance required to be maintained under the terms of the Contract Documents, whichever is less. The limitation of liability shall prevail over any conflicting or inconsistent provisions contained in the Contract Documents except where such conflicting or inconsistent provisions provide a more restrictive remedy. 3. Indemnification by Customer. Customer agrees to indemnify, defend (at its own expense with counsel satisfactory to ITG) and hold ITG harmless from claims demand, liabilities, causes of action, and suits for loss or damage which by suffered by ITG as a result of injury to persons (including death) and property arising from the negligent acts of Customer or its employees, servants or agents in any way related to or in connection with the Work.Nothing contained herein, however, shall be construed as a waiver of any immunity from or limitation of liability the Customer may be entitled to under the doctrine of sovereign immunity or section 768.28, Florida Statutes. 4. Assignment. The provisions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assignees of the parties hereto. A party to this Agreement will not sell, transfer, assign, license, franchise or otherwise part with possession or mortgage, charge or encumber any right or obligation under this Agreement without the proposed assigned agreeing in writing with the non-assigning party to observe and perform the terms, conditions and restrictions on the part of the assigning party to this Agreement whether express or implied as if the proposed assignee was an original contracting party to this Agreement. 5. Severability. Should any court of competent jurisdiction declare any provision of this Agreement invalid, then such provision shall be severed and shall not affect the validity of the remaining provisions of this Agreement. 6. Choice of Law: Venue. The laws of the State of Florida shall control the validity, construction and effect of this Agreement and also any extensions and/or modifications of it. Any action, suit, or other proceeding concerning this Agreement must be brought and maintained only in a court of competent jurisdiction sitting in Pinellas County, Florida. 7. Costs and Expenses. Each party will pay its own costs and expenses in relation to the negotiations leading up to and in relation to the preparation, execution and 6 9 carrying into effect of this Agreement and all other documents referred to in it or in the event that either party deems it necessary to take legal action to enforce any provisions of this Agreement. 8. Notices. a. If to ITG: Integrated Technology Group 5000 Miller Court East Norcross, GA 30071 b. If to Customer: Library Director City of Clearwater 100 North Osceola Avenue Clearwater, Florida 33755 9. Entire Agreement. The complete understanding between the parties is set out in this Agreement and this Agreement supersedes and voids all prior and contemporaneous understandings, proposals, letters, agreements or conditions expressed or implied, oral or written, except as herein contained. Any amendment, modification, waiver or discharge of any requirement of the Agreement will not be effective unless in writing signed by the parties hereto or by their authorized representatives. 10. Headings. The headings in this Agreement are for convenience and reference and are not intended to define or limit the scope of any provision of this Agreement. 11. Third Parties. Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third party against the parties to this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first hereinabove written. INTEGRATED TECHNOLOGY GROUP, A DIVISION OF VERNON LIBRARY SUPPLIES, INC. By:r.. Shai Robkin President 5000 Miller Court East Norcross, GA 30071 Taxpayer Federal I.D. #58-1605770 Countersigned: Date Witness: Date: -as ) p CITY OF CLEARWATER, FLORIDA By: .. 7T William B. Horne, II, City Manager Attest: 8 vAEPY?OFt E. Goudeau, City Clerk Frank V. Hibbard, Mayor 5000 Miller Court East Norcross, Georgia 30071 sales@integratedtek.com integrated Tall Free Phone: 1-877-207-3127 Fax: 1-877-207-3129 www.intogratedtok.com The ITG XpressCheck Is designed so that patrons can checkout materials without the assistance of staff. It can be used with electromagnetic (EM), radio frequency (RF), and RFID security systems or without interface to any security system. ITG XpressCheck Medalloln kiosk includes a modern, ultra-compact klosk design appropriate to libraries designed In a contemporary style. It is available in counter-top and free-standing models and comes equipped with an atttractive and reliable NCR Integrated computer/monitor. It Includes: D graphical, customizable, patron-friendly software interface I state-of-the-art computer `i NCR's incomparable touch screen monitor 7 built-in bar code scanner n exceptional, built-in cable management J receipt printer (with optional dual-sided printing) The ITG XpressCheck TM Countertop Kiosk is designed to sit on top of a library-supplied counter or desk. With the surface at the correct height, the unit is ADA-compliant. The ITG XpressCheck Free-standing Kiosk is ADA compliant and can be located anywhere in the library where there Is access to power and the library's Ethernet network, elther by cable or wireless. VEC0300MED HARDWARE: ITG XpressCheekTM Counter $ 11,995.00 9 $ 8,396.50 Each $ 75,568.50 Kiosk Medallion Style. SOFTWARE: ITG XpressCheck OR Polaris ExpressCheck Plus all necessary Integration software (SIP2, ITG API as requlred) Optional Extras NWAWAi THERMPAPER Thermal Receipt Paper (24 roll case) $ 68.40 1 $ 68.40 Each $ 68.40 ITG XpressCheck Management Console allows system administrators to configure multiple ITG XpressCheck systems quickly and simply. Changes can be made to all machines simultaneously, or groups of machines selected by easily readable "friendly" machine names. Using folder shares, over your network, the ITG XpressCheck Management Console can update configuration settings, Image files, sound files, and distribute product patches or updates. Integration Into the existing configuration Interface Is virtually seamless. The purchase price also includes one ITG XpressCheck license for the system administrator's computer to enhance remote configuration capabilities. XCMC Management Console for Remote Acimn. $ 11200.00 Included Each FREE XCMAGST Mag Stripe Reader $ 180.00 9 $ 180.00 Each $ 1,620.00 XCTOPPER Standard Screen Topper $ 125.00 $ - Each $ - XCTOPPER Custom Screen Topper . $ 250.00 $ Each $ Fines and Fees.:: ; ITG XpressCheck's Fines and Fees patron seK-payment module allows patrons to pay fines and fees with either credit or debit cards and, optionally, with cash. Must be used In conjunction with the Authorize.net payment gateway and the library's existing merchant account. Each library system purchases a single system license and one client license per self-checkout station. Apex XpressCheck Quotation Integrated Technology Group, A Division or Vernon Library Supplies, Inc. Page 1 of 2 5000 Miller Court East Toll Free Phone: 1-877-207-3127 Norcross, Georgia 30071 Fax: 1-877-207-3129 sales@integratedtek,com Cintaggrated www.integratedtok.com Prices abdve include first year's support and maintenance. The Install and Shipping Is based in a single time installation for all 9 units, if this Is changed by customer, we would need to requote. Annual Support and Maintenance for ears 2-5 is offered with a 25% discount totalling the amount of: $ 38,000.00 Total Pric® Includin Mairtenance: $ 164,053.19 Apex XpressCheck Quotation Integrated Technology Croup, A Division of Vernon Ubtety Supplies, Inc. Page 2 of 2 Grand Total: $126,053.19 Note; . kwc, on MW_ In+ a, 0 ITC5 'Nfea-Aweu're.L'NNXOQq "Our ITG XpressCheck Components ITG XpressCheckTM Patron Self-Service System Bar Code Based Self-Checkout (for use with RF security or for libraries without security systems) Software features: • Easy-to-use patron interface designed by NCR -the world leader in self-service • Includes many standard features other companies charge extra for, including AVXpressTM case unlocking and Fines and Fees payment modules • Two-way remote messaging • Store and Forward allows self-checkout to continue if SIP server is offline or unavailable • Easy for library staff to customize screen messages, graphics, animations, screen colors, backgrounds, audio and receipt messages and distribute from one networked PC with optional Management Consoler"" Hardware configurations: • Freestanding kiosks or countertop units; individual components offered for installation in or on existing furniture • Includes compact, one-piece NCR integrated computer and 17" touch screen monitor with keyboard and mouse, built-in bar code scanner and graphics-capable thermal receipt printer • Standard finish is black and silver; custom options available • Can be retrofitted with RFID equipment • Supports green initiatives by offering scalable, energy-efficient processor options based on Intel'* Corer' microarchitecture. The kiosk delivers high performance while consuming 60% less power than a standard PC and 17" monitor. Companion Products: • Kwik Case• AV case unlocker • OneTimeTM Case unlocker • Fines and Fees payment: pay fines and fees at self-checkout with debit or credit card (requires merchant account and Authorize.net gateway) and/or Cash and Bill Acceptor • DiscXpress II'm Secure Automated Disk Delivery System: a scalable storage and delivery system for valuable AV materials • Customizable, colorful unit toppers to instruct and attract users Specs: ITG XpressCheck Hardware Countertop units: • 18" w x 23.5" d x 23.5" h • weight including monitor: approx. 50 lbs. • Single-sided thermal line printer - power: 24 V DC; weight - 3.9 Ibs; dimensions - 5-5/8 in. W x 8 in. D x 5-1/4 in. H. • Power requirements: 110 V AC - min 15 amps (dual outlet required). Integrated Technology Group A Division of Vernon Library Supplies, Inc. 9 Page 2 • Requires access to the library's network (via Ethernet or wireless connection) • Requires SIP2.0 (can be acquired from the library's ILS vendor) NCR Integrated Computer and Touch Screen Monitor: Processor and Motherboard • Mobile Intel GM 45 Express Chipset • Scalable mobile processor options: Intel CoreTm 2 Duo T7500, Intel Celeron® 575 • Speed-controlled CPU fan for lower noise • Intel AMT 4.1 remote management Memory and Storage • Configurable up to 8GB DDR2 memory • 80GB Serial ATA (SATA) hard drive • Optional solid state drive Touchscreen • Proven capacitive touch technology • 17"high brightness, high contrast LCD Connectivity • Two powered serial ports • Seven type-A USB connectors • Audio in, audio out, ADA audio out for kiosk applications • DVI-I connector on 1/0 board supports DVI and VGA displays • MIC input and headphone output • High-speed Gigabit Ethernet Standard Features • Stereo speakers • Motion detection • Secured USB ports for MSR, biometrics and wireless • Integrated signage system Optional Features • Omni-directional scanner • USB bi-directional magnetic stripe reader • Receipt or full-page printer options with two-sided-thermal (2ST®) capability • Global support for USB 802.11(b/g) wireless Operating systems: • Windows' XP Professional • Windows XP Embedded • POS ready 2009 Integrated Technology Group A Division of Vernon Library supplies, inc. inteprated,+? Integrated Technology Group's One Year, Limited Product Warranty Integrated Technology Group (ITG) warrants that the equipment provided in conjunction with ITG's Apex XpressCheckTM, Apex RFIDTM, Vista SortingTM and/or other ITG-developed and supplied system(s) to be free from factory defects for a period of one year from the date of installation. This limited warranty does not extend to any ITG product which, in the sole judgment of ITG has been subjected to abuse, misuse, neglect, improper installation, or accident, or any damage due to use or misuse produced from integration of the RFID products into any mechanical, electrical, or computer system. Further, any abuse, misuse, neglect, improper installation, accident, enhancement, modification, alteration or change made without ITG's written consent will invalidate ITG's Limited Product Warranty. In the event that it is determined the equipment failure is covered under this warranty, ITG shall, at its sole option, repair or replace the piece of equipment with functionally equivalent or better equipment and return such repaired or replaced equipment without charge for service or return freight. This limited warranty, except as to title is in lieu of all other warranties or guarantees, either express or implied, and specifically excludes, without limitation, warranties of merchantability and fitness for a particular purpose under the uniform commercial code, or arising out of custom or conduct. The rights and remedies provided herein are exclusive and in lieu of any other rights or remedies. In no event shall ITG be liable for any indirect or consequential damages, incidental damages, damages to person or property, or other damages or expenses due directly or indirectly to the purchased equipment, except as stated in this warranty. In no event shall any liability of ITG exceed the actual amount paid to the Integrated Technology Group for a specific piece of equipment involved in the incident.. 5000 Miller Court East Norcross, GA 30071 Tel. 1-877.207.3127(volce) 1-877.207.3129(fox) www.integratedtek.com Copyright ® 2009 Integrated Technology Group Last Edited: 5/20/2009 A Division of Vernon Library Supplies, Inc . f-?c_bvryn4- APEX _ tnte Annual Maintenance and Support for ITG RFID Products Product Support ITG provides support for Apex RFID through both a web-based interface and through telephone support. Telephone support is available Monday-Friday from S_OOam to 6:00pm, local time. Additionally, ITG employs the Wachter Corporation, a hardware support firm, as a subcontractor to provide onsite service for Apex RFIDTM components. Qnsite service is available during library hours. Phone and web-based support is provided directly through ITG's Customer Service group. If a hardware issue is determined by ITG staff, Wachter personnel will be dispatched to the Library to diagnose and repair the problem. If a software issue is identified, ITG will resolve the problem using a remote connection to the equipment. ITG is committed to a response time of no more than two (2) hours for phone or web requests for service and four (4) hours for issues reported by the Library that require onsite support. The following chart shows how information is gathered by ITG support and how ITG responds to support issues. Customer submits a support issue. Support team reviews the issue and assigns it to the appropriate support rep. The support rep addresses customer's issue and responds by phone or email. If the response could benefit other customers, the rep publishes the response in ITC's searchable FAO list that all customers can mew. The support rep responds with a solution based on the information provided by the customer. 1 1 The customer provides any additional information requested by the support rep. 5000 Miller Court East Norcross, GA 30071 Tel. 1-877.207.3127(voice) 1-877.207.3129(fox) www.integratedtek.com Copyright ® 2009 Integrated Technology Group Last Edited: 4/21/2009 A Division of Vernon Library Supplies, Inc ?;t. APEX Annual Maintenance and Support for ITG RFID Products ?ntograted =ft Tasks • Submission: A customer submits an issue from the online Help Desk and selects a category for the issue. URL for the Integrated Help Desk: http://www.integratedtek.com/content/support.asp • Review: All representatives assigned to the selected support category are notified by email immediately when a new issue has been submitted. After researching the issue and reviewing the customer's profile, a representative responds to the customer by telephone or by email. • Work with the Customer (Responses/Updates): Further updates to the issue, provided by the customer or the support representative, are shown internally and to the issue submitter. • Resolved / Public Issue: Once the question has been resolved to the satisfaction of the customer and the representative, the issue status is changed to resolved. The support rep can choose to make the resolution public as part of a support knowledgebase if the response is helpful to other customers. The rep sends an email to notify the customer the issue has been resolved, together with a link to the resolution. Benefits • Because all representatives are notified when a customer submits an issue, resolution is fast. Notifications do not depend on a rep being available by phone; all reps assigned to a product category are notified simultaneously. The first available rep handles the issue. • If the issue reported needs to reassigned based on providing the right expertise to solve the problem, or needs to be escalated to a more senior representative, the receiving rep can instantly re-assign the issue to the right resource person. This person is automatically notified by email. This methodology ensures that the most appropriate representative is always assigned to the customer's issue. • After login to the support system, a rep can see how many new issues have been reported. The details of all issues are available, and the representative can respond directly from the site without having to depend on access to email. Support is available as long as the support representative has access to the internet. 2 APEX Annual Maintenance and Support for ITG RFID Products ?RtogratedWa • Along with the publicly available support database, reps have access to an internal technical database that provides additional information to solve customer problems. Once a problem is resolved the first time, all other customers benefit from the results. • When a customer uses the online Help Desk for support; the customer is automatically provided with a standard procedure for reporting issues and provided documentation on issue resolution. The following pages include a sample ITG Support Agreement. 3 ev__ APEX Annual Maintenance and Support for ITG RFID Products Cintograted Sample Terms and Conditions for Support and Maintenance These Terms and Conditions of Support and Maintenance are evergreen in nature and do not expire. The Customer or Integrated Technology Group (ITG) may terminate this agreement at any time for any or no reason. Billing cycle for Support and Maintenance will be on an annual basis beginning with the anniversary date of the first shipment of equipment or software to the Customer. Billing for Support and Maintenance for products shipped after the first shipment will be pro-rated in such a manner to insure that all products remain co-terminus. (a) Coverage. Integrated Technology Group (ITG) will provide Customer support and maintenance services on an annual basis subject to ITG's Equipment Lifecycle Policy and payment of the annual Product Support and Maintenance Fee. The following services will be provided during the period covered as described below: (i) With the exception of consumable supplies (e.g. print ribbons) and parts with specified limited usage life spans (e.g. printer heads), ITG will repair or replace hardware components unless such failure is caused by the Customer, as determined by ITG in consultation with the Customer. Replacement parts, be they new or refurbished, will be equal to or better than the parts being replaced. Replacement parts will be provided on an exchange basis. End of Support (EOS) for Hardware products is specified in the attached document entitled Apex RFID Maintenance and Equipment Lifecycle Policy. (ii) In the event that the Customer reports material bugs or defects in the Software, ITG shall use commercially reasonable efforts to correct or replace the Software or provide the services necessary to remedy any programming error attributable to ITG that significantly affects the functionality of the Software. (iii) ITG shall provide points of contact for Customer to report Product problems, failures and defects and to request Product changes and enhancements. Only those individuals specifically designated by the Customer shall contact ITG in regard to such matters and ITG is not obligated to respond to any other employees except those specifically designated. 4 APEX i Annual Maintenance and Support for ITG RFID Products lJI#II'QP8lI3dwv (iv) ITG support shall be available during all regular operating hours of the library. ITG shall respond within 24 hours to determine the nature of the error or defect in the product. ITG shall provide the maintenance and support services during the service period by telephone, facsimile, email, modern, on site visit or any other means which its deems appropriate, at its sole discretion, to adequately provide those services. (v) As a part of this, agreement, ITG shall supply Customer any and all updates, improvements, and modifications to the Licensed Programs that ITG makes available to its licensees generally without charge, provided that ITG reserves the right to charge separately for new options or new applications that, in the discretion of ITG, constitute a new software product. Such updates, improvements, and modifications shall be provided to the Customer within the framework of periodic official releases. Software support will be limited to the two most recently distributed releases. (vi) Maintenance services to be provided by ITG under this Agreement do not include: (a) Correction of errors arising from changes, alterations, additions or modification by persons other than the employees or agents of ITG or caused by the operation of the Product other than in accordance with the operating specifications (b) Correction of errors arising from the fault, neglect, misuse or omission of the Customer or its servants, agents, contractors, or invitees, or any other person whether or not that person is under the control or direction of the Customer (c) Rectification of errors or defects caused by the incorrect or unauthorized use, modification, revision, variation or translation of the software by the Customer or its servants, agents, contractors or invitees (d) Repair of damage arising from the failure or surge of electrical power, fusion, fire, air conditioning malfunction, damage caused in transportation or any other environmental factor or cause other than a cause arising from normal use of the Product (e) Correction of errors caused by the use of computer programs not licensed by ITG for use by the Customer 5 V APEX Annual Maintenance and Support for ITG RFID Products Integrated (b) Assi meet of Warranties on Hardware Products. In addition to ITG's obligations under the Maintenance Agreement, ITG hereby assigns to the Customer all rights of ITG under any manufacturer's warranties applicable to Hardware Products purchased under this Agreement to the extent such assignment is permitted under such warranties. Such assignment will be effective upon payment of the Total Purchase Price and all other charges invoiced for the shipment of the Products. Except as provided hereunder or pursuant to an executed Maintenance Agreement, ITG shall have no obligation to provide maintenance support or other services for Hardware Products purchased under this Agreement. (c) Limitation on Services. Notwithstanding the above, in the event that Customer or any third party enhances, modifies, alters or otherwise makes any change to the Products without the prior express written consent of ITG, ITG shall have no obligation whatsoever to provide maintenance or support of such Products at any time after such enhancement, modification, alteration or change. Notwithstanding anything herein to the contrary, ITG's obligation to provide maintenance and support for the Licensed Programs shall extend only to the most recent version and the next most recent version of the Licensed Programs provided to Customer. (d) W ades. The information technology industry is very dynamic and marked by frequent product replacement and upgrades. With respect to hardware and third party software, Customer retains the responsibility for the costs of purchase and installation of said upgrades necessary to maintain the functionality of system. (e) Customer Oblations. During the term of this Agreement, Customer has responsibility to provide: (i) Customer shall provide ITG with sufficient documentation, information, assistance, support and test time on Customer's computer system to duplicate any reported problems, certify that the problem is with the Products, and certify that the problem has been corrected. ITG will be provided with remote access to systems to aid the troubleshooting and repair process. . (ii) Customer shall designate specific employees who will be trained in all aspects of the products, including trouble shooting. These, and only these employees, may contact ITG for matters related to this Agreement. Customer shall perform problem definition activities and any remedial or corrective actions as described in the Licensed Programs customer manuals and other system documentation provided to Customer by ITG prior to seeking assistance from ITG. 6 APEX Annual Maintenance and Support for ITG RFID Products tntegroted Customer is responsible for performing scheduled preventative maintenance as per product specifications. (v) Customer shall provide ITG's Maintenance personnel with proper and safe access to the equipment and software at all requisite times for the purpose of providing the maintenance services. (vi) Customer will provide ITG with at least 30 days written notice of the Customer's intention to move the equipment to a location other than the premises. Agreed upon on 10 day of month, @p ( L7 Signature below indicates agreement to all written terms: Vernon Library Supplies, Inc d.b.a. Integrated Technology Group r . Signature 5000 Miller Court East Norcross, GA 30071 Phone: 877.207.3127 Fax: 877.207.3129 a3 l?i7 Date Customer: Print Name: Title: Signature Address: City, ST, Zip Phone: Fax: E-mail: Date 7 ? ktk ryw (\+ S integrated ;:?* Apex RFID Maintenance and Equipment Lifecycle Policy The purpose of the Apex RFID Maintenance and Equipment Lifecycle Policy is to set product End of Support (EOS) expectations. The information technology industry is very dynamic and marked by frequent product obsolescence. In order to protect customer investment in their system, EOS dates and options should be clearly understood. This policy is available to customers that have kept their equipment under continuous coverage of a maintenance agreement. ITG will maintain product support under the following terms: For all but Security Pedestals and Automated Materials Handling (AMH) products: a. EOS for these hardware products is set at 6 years (1 year warranty plus 5 years support agreement): b. Prior to EOS, customer and ITG should do an evaluation to determine if continued support is possible. If so, the maintenance agreement will be renewed for a specific period of time as agreed by the two parties. c. On EOS date, customer has a number of options available: i. Support will be made available on a best effort, per incident basis, at the then current labor rates. All efforts will be made to affect repairs on said equipment but results may be limited by availability of parts or inventory. ii. ITG offers a convenient program that allows customers to upgrade their equipment to the current levels at a 35% discount. This upgrade along with a renewed maintenance agreement will reset the clock for an additional 5 years. This program will be made available well in advance of the EOS date should customer decide to keep equipment current throughout the life of their system. 2. Security Pedestals a. EOS for these hardware products is set for 8 years (1 year warranty plus 7 years support agreement) b. Prior to EOS, customer and ITG should do an evaluation to determine if continued support is possible. If so, maintenance agreement will be renewed for a specific period of time. c. On EOS date, customer has a number of options available: i. Support will be made available on a best effort, per incident basis, at the then current labor rates. All efforts will be made to affect repairs on said equipment but results may be limited by availability of parts or inventory. 5000 Miller Court East Copyright ® 2008 Norcross, GA 30071 Integrated Technology Group Tel. 1-877.207.3127(voice) Last updated: 2/6/2008 1-877.207.3129(fox) www.integratedtek.com A Division of Vernon Library Supplies, Inc WWII? F" ii. ITG offers a convenient program that allows customers to upgrade their equipment to the current levels at a substantial discount. This upgrade along with a renewed maintenance agreement will reset the clock. for an additional 7 years. This program will be made available well in advance of the EOS date should customer decide to keep equipment current throughout the life of their system. 3. AMH Products a. EOS for these product is set for 10 years (1 year warranty plus 9 years support agreement) b. Prior to EOS, customer and ITG should do an evaluation to determine if continued support is possible. If so, maintenance agreement will be renewed for a specific period of time. c. On EOS date, customer has a number of options available: i. Support will be made available on a best effort, per incident basis, at the then current labor rates. All efforts will be made to affect repairs on said equipment but results may be limited by availability of parts or inventory. ii. ITG offers a convenient program that allows customers to upgrade their equipment to the current levels at a substantial discount. This upgrade along with a renewed maintenance agreement will reset the clock for an additional 9 years. This program will be made available well in advance of the EOS date should customer decide to keep equipment current throughout the life of their system. Installation services for actions resulting from options presented above, whether on- site or remote, are billable at normal installation rates. While this document is specific to hardware components, all terms related to software and software support remain as stated in the original maintenance agreement Integrated Technology Group 2 Last updated: 2/6/2008 5:19 PM A Division of Vernon library supplies. Inc. Proprietary and Confidential 9