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<br />Hewlett-Packard Company (HP) and
<br />City of Santa Ana, California (Customer)
<br />Multiyear Discount Attachment
<br />(Applicable to Products located in the USA
<br />and CANADA only)
<br />
<br />[A~~
<br />
<br />inyent
<br />
<br />The Multiyear Discount Program is governed by this
<br />Attachment, the HP Terms and Conditions of Sale and
<br />Service (Exhibit E 16), and Exhibit SS5 ("HP Support
<br />Services").
<br />
<br />Customer hereby commits to the purchase of three (3) years
<br />of System Support Services. HP will grant a Multiyear
<br />Discount ("Discount") against qualified System Support
<br />Services charges subject to the conditions set forth in this
<br />Attachment. Support prices will be fixed for the three (3)
<br />year term.
<br />
<br />I. Eligibility
<br />
<br />A. Customer must sign this Attachment which commits
<br />Customer to purchase System Support Services for a three
<br />(3) year term. The initial order and any subsequent orders
<br />for System Support Services governed by this Attachment
<br />cannot be canceled without penalty unless Customer either
<br />sells or discontinues use of the equipment.
<br />
<br />B. Upon execution of this Attachment, Customer must
<br />provide HP with a Master Equipment List, which contains
<br />the applicable product number, serial number and location of
<br />Customer's equipment. Any applicable Discount shall be
<br />applied solely to System Support Services charges for
<br />equipment on the Master Equipment List.
<br />
<br />C. During the term of this Attachment, charges for System
<br />Support Services must be equal or greater than an annualized
<br />rate of $50,000 at list prices.
<br />
<br />II. Qualifying Services
<br />
<br />The Discount will apply only to System Support Services,
<br />which are provided under HP's Exhibit SS5 except as set
<br />forth below:
<br />
<br />HP Upfront Services, Support Services on Compaq-branded
<br />products (i.e., products referencing a Compaq trademark or
<br />logo), Support Services on NonStop products, HP Microsoft
<br />Authorized Premier Support, Business Continuity Support,
<br />HP customer return to support services, consulting services
<br />and all per incident services, such as after coverage hours
<br />and per-call improved response options, and time and
<br />materials services are specifically excluded from the
<br />discounts and fixed prices described in this Attachment;
<br />however, the service charges associated with Business
<br />Continuity Support will count towards the total annual
<br />charges for System Support Services. In the event that
<br />
<br />HP and City of Santa Ana, CA
<br />Multiyear Discount Attachment
<br />
<br />Critical Systems Support Services (CSS) are purchased, the
<br />maximum discount for CSS Services will be 28%.
<br />
<br />III. Discounts
<br />
<br />A. HP will grant a Discount against qualifying System
<br />Support Services charges according to the following table:
<br />
<br />Total Annual Discount
<br />Charges for System Support Percentage
<br />Services
<br />$50,000 to $ 99,999 7%
<br />$100,000 to $149,999 10%
<br />$150,000 to $299,999 14%
<br />$300,000 to $599,999 19%
<br />$600,000 to $999,999 23%
<br />$1,000,000 to $1,499,999 26%
<br />$1,500,000 to $2,499,999 28%
<br />$2,500,000 and up soecial quote
<br />
<br />The Discount will remain in effect for the three (3) year
<br />period. Customer will receive a five percent (5%) discount,
<br />in addition to the Multiyear Discount, for payment in
<br />advance of each one (1) year period for the deliverable
<br />services. Customer will receive an eight percent (8%)
<br />discount, in addition to the Multiyear Discount, for payment
<br />in advance of the total three (3) year period for deliverable
<br />services.
<br />
<br />The additional discount will be calculated after the
<br />applicable Multiyear Discount percentage is applied.
<br />Services added to this Attachment will receive the applicable
<br />discounts, including the prepayment discount, if payment is
<br />received in advance for the remaining contract period.
<br />
<br />B. The amount of the Discount for each invoice will be
<br />calculated as follows:
<br />
<br />Discount amount ~ (the applicable Discount percentage) x
<br />(the total current monthly System Support Services charges
<br />at list prices)
<br />
<br />C. The annual Discount percentage may be reviewed once
<br />each year on the anniversary date of this Attachment
<br />provided Customer did not pay in advance for the three (3)
<br />year term. The Discount will not be reviewed on an annual
<br />basis for orders paid in advance for the three (3) year term.
<br />
<br />Page 1 00
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<br />Revision Date July 21, 2003
<br />
<br />EXHIBIT F
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