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<br />ARTICLE II - SCOPE OF SERVICES <br /> <br />Section 1 - General ReQllirements <br /> <br />licensor shall provide application support/error recovery for the licensed <br />application software system(s) and application software upgrades in accordance with the <br />following terms: <br /> <br />A <br /> <br />B. <br /> <br />The agreement between the parties shall initially be for a {leriod of one year <br />from the effective date provided in Article V and automatIcally renew on <br />each anniversary thereafter. Either party may terminate the agreement by <br />giving written notice to the other party not less than thirty (30) days prior to <br />the annual renewal anniversary date. Notice of terminatIOn, except for <br />cause, shall not amend the duties, rights or liabilities that occur until date of <br />termination. <br /> <br />licensor will maintain the licensed aprlication software system(s) during the <br />term of this agreement. licensor shal make available to licensee all <br />u{ldated and revised versions to the base system which are provided by <br />licensor. <br /> <br />C. <br /> <br />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 <br />its agent, licensor reserves the right to invoice the licensee for such service <br />on a time and materials basis at current licensor hourly rates plus actual out <br />of pocket expenses. <br /> <br />Licensor shall not be responsible for consequential damages by program <br />malfunctions. . <br /> <br />D. <br /> <br />E. <br /> <br />Licensor shall not provide expressed or implied warranty of updates to <br />application software unless the updates are modified and installed by <br />Licensor or 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 <br />maintenance service charges per pricing described in Appendix A The fee shall be <br />reviewed each year prior to the anniversary date of this agreement. Written notice of any <br />needed changes shall be provided to the other party not less than sixty days (60) prior to <br />the effective date for reVIsed charl):es. All mutually agreed changes in fees charged shall be <br />incorporated by approved appendIX of this agreement. Payment shall be made within <br />fifteen days (15) days of receiving said invoice. <br /> <br />Section 2 - Payment 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 <br /> <br />PAGE 3 OF6 <br />