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<br />2. FORM OF AGREEMENT <br /> <br />The following Exhibits hereto are incorporated into and made a part of this Agreement: <br /> <br />Exhibit B <br /> <br />VOS Service Level Agreement <br /> <br />In the event of any conflict or inconsistency among documents related to this Agreement, said conflict or <br />inconsistency shall be resolved by giving precedence to this Agreement, followed by the Service Level <br />Agreement. <br /> <br />3. TERM AND TERMINATION <br /> <br />a. This Maintenance Agreement shall commence on the effective date of this Agreement and remain in effect <br />through September 30,2009, unless terminated earlier pursuant to section 3(b), below. In order to provide <br />uninterrupted service, those services provided by VOS since October I, 2006 shall be included within the <br />scope of services listed in paragraph 1, above. Upon expiration, this Maintenance Agreement may be <br />renewed for OTIe additional two-year term at the option of the City. <br /> <br />b. City may terminate this Agreement upon thirty (30) days written notice, for VOS' failure to provide <br />required services as set forth in Section 1, above. In the event of termination, a refund equal to the <br />remaining prorated Maintenance Agreement price (Le.: Maintenance Agreement price paid by City divided <br />by 12 times the number of remaining months) shall be paid to City within 60 days. <br /> <br />c. Citys' remedy for VOS' breach of this Maintenance Agreement shall be a prorata refund of any portion of <br />the advance maintenance fee which has not been used, Said refund will be calculated on a monthly basis. <br />Total Maintenance Agreement price divided by 12, times the months remaining, Partial months will be <br />calculated at the mathematical equivalent ofa daily rate (monthly rate divided by 30 days). <br /> <br />4. FEES AND CHARGES <br /> <br />a. The fee for the maintenance and support services provided for herein shall not exceed $27,000.00, <br />during the first one year term of this agreement, payable in advance of each one year period. It is hereby <br />agreed that the renewal rate for this Maintenance Agreement shall either be the same as the current year's rate <br />or at an increase not to exceed the Consumer Price Index (CPI) Los Angeles - Riverside - Orange County area. <br /> <br />b. Implementation services including consulting, custom setup and configuration and installation of new <br />upgrades or updates, shall be billed on a time and materials bases at a rate not to exceed $187.50 during the <br />initial three-year term of this Agreement. During the fourth year and annually thereafter the billable rate may <br />annually be set at the current rate, increased at a the current rate multiplied by the Los Angeles - Riverside _ <br />Orange County CPI, or the lowest standard rate billed to other VOS clients, whichever is less. <br /> <br />c, Total fees and charges for all services provided pursuant to this Agreement shall not exceed <br />$40,000.00, annually, during the term of this Agreement. <br /> <br />5. INSURANCE <br /> <br />Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall <br />require its subcontractors, if any, to obtain and maintain insurance as described below: <br /> <br />a, Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of the <br />Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's <br />compensation or to undertake self-insurance, Prior to commencing the performance of the work under this <br />Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than <br />$1,000,000 per accident. <br />