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<br />ARTICLE II - SCOPE OF SERVICES <br /> <br />Section 1 - General Reouirements <br /> <br />Licensor shaU provide application support/error recovery for the licensed application <br />software system(s) and application software upgrades in accordance with the foUowing tenns: <br /> <br />A. The agreement between the parties shall initially be for a period of one year <br />from the effective date provided in Article V and automatically renew on each <br />anniversary thereafter. Either party may tenninate the agreement by giving <br />written notice to the other party not less than thirty (30) days prior to the annual <br />renewal anniversary date. Notice of tennination, except for cause, shall not <br />amend the duties, nghts or liabilities that occur until date of tennination. <br /> <br />B. Licensor will maintain the licensed application software system(s) during the <br />tenn of this agreement, Licensor shall make available to Licensee all updated <br />and revised versions to the base system which are provided by Licensor. <br /> <br />C. Licensor will correct any error and, if such is found to be caused by <br />modification to the application software by any party other than Licensor, or its <br />agent, Licensor reserves the right to invoice the Licensee for such service on a <br />time and materials basis at current Licensor hourly rates plus actual out of <br />pocket expenses. <br /> <br />D. Licensor shall not be responsible for consequential damages by program <br />malfunctions. <br /> <br />E. Licensor shall not provide expressed or implied warranty of updates to <br />application software unless the updates are modified and installed by Licensor or <br />its agent. <br /> <br />ARTICLE III - PAYMENT FOR SERVICES <br /> <br />Section 1 - Payment for Basic Services <br /> <br />The Licensee agrees to pay all applicable fees for software updates and maintenance <br />service charges per pricing described in Appendix A. The fee shall be reviewed each year <br />prior to the anniversary date of this agreement. Written notice of any needed changes shall be <br />provided to the other party not less than sixty days (60) prior to the effective date for revised <br />charges. AU mutually agreed changes in fees charged shall be incorporated by approved <br />appendix of this agreement. Payment shall be made within fifteen days (15) days of receiving <br />said invoice. <br /> <br />Section 2 - Pa.yment for Additional Services <br /> <br />Any services approved in addition to the agreed provisions of Article II of this <br />agreement shall be inVOIced on a time and material basis at the current Licensor billing rate <br />plus any actual out of pocket expenses. AU invoices for additional services shall require <br />approval by Licensee, or his/her agent and payment of invoices for additional services shall be <br />made withm fifteen (15) days of said approval. Additional services typically address the needs <br /> <br />PAGE30F6 <br />