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l <br />DEDICATED SERVERS <br />All servers that are part of the System shall be dedicated servers and shall only contain software <br />and content for, and shall only be operated for the purposes of, the Horizon system. Failure to <br />comply with this requirement by the Library may result in Dynix's voiding its warranties made under <br />this Agreement and/or terminating maintenance. <br />7. LICENSED SOFTWARE MAINTENANCE <br />Dynix shall maintain the Licensed Software modules intended to replace the Library's existing Dynix- <br />brand modules for a period of six (6) months from installation. Newly acquired Licensed Software <br />modules shalt be maintained by Dynix at Dynix's expense for a period of one (1) year from <br />installation. Support of third party products shall be subject to the manufacturer's warranty and <br />maintenance programs, if available. <br />8. PAYMENT SCHEDULE <br />Dynix shall submit all invoices to the Library at the address shown in the first paragraph of this <br />Agreement. The Library is solely responsible for payment of all invoices. Dynix will not provide <br />multiple invoices or bill entities other than the Library, including consortium members or governing <br />boards, unless stated otherwise in this Agreement. Invoices shall be considered past due thirty (30) <br />days after the date shown thereon. Late invoices are subject to one and a half percent (1'/z%) per <br />month interest charge (18% per annum). Payment is due upon invoice for successful completion of <br />contract milestones as shown below: <br />MILESTONE AMOUNT <br />Delivery of Client Licensed Software Modules to the Library 16,644 <br />Completion of Data Services per Schedule 1 12,000 <br />Delivery of Hardware and Third-Party Software to the Library 130,203 <br />Completion of On-site Training Services per Schedule 1 8,000 <br />TOTAL $166,847 <br />9. TAXATION <br />If the Library is exempt from taxes, photocopies of applicable certificates demonstrating exemption shall <br />be provided by the Library prior to the execution of this Agreement. <br />Unless otherwise noted, the prices in any Agreement do not include taxes. The Library agrees to pay <br />directly or reimburse Dynix for any taxes arising out of any Agreement or Dynix's performance under <br />any Agreement, excluding taxes on Dynix's net income, business license taxes and any other such <br />taxes and/or fees arising out of Dynix's business operations. <br />10. SOFTWARE LICENSE <br />A. Dynix hereby grants the Library anon-exclusive, non-transferable, non-sublicenseable and limited <br />use license to use the Software on the Database Server, iPac Server, and Workstations for the <br />number of Users specified in Schedule 1 solely in the conduct of the business of the Library. <br />B. The Library may not rent or lease the Software to any other entity or use the Software as part of a <br />commercial time-sharing, subscription bureau or service bureau operation. <br />C. The Software is confidential and copyrighted and all rights therein not expressly granted to the <br />Library are reserved to Dynix. <br />D. Dynix retains title to all copies of the Software; all training and procedural materials developed by <br />Dynix in conjunction with the Software; and any additions and supplements to the Software which <br />may be developed for the Library through the reimbursed or unreimbursed efforts of Dynix <br />employees or agents. <br />City of San Leandro -Page 3 <br />CONFIDENTIAL ANO PROPRIETARY <br />