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<br />e <br /> <br />e <br /> <br />ARTICLE II - SCOPE OF SERVICES <br /> <br />Section 1 - General Reauirements <br /> <br />Licensor shall provide application support/error recovery for the licensed <br />application software system(s) and application software upgrades in accordance <br />with the following terms: <br /> <br />A. The agreement between the parties shall initially be for a period of <br />one year from the effective date provided in Article V and <br />automatically renew on each anniversary thereafter. Either party may <br />terminate the agreement by giving written notice to the other party <br />not less than one hundred eighty (180) days prior to the annual <br />renewal anniversary date. Notice of termination, except for cause, <br />shall not amend the duties, rights or liabilities that occur until date of <br />termination. <br /> <br />B. Licensor will maintain the licensed application software system(s) <br />during the term of this agreement. Licensor shall make available to <br />Licensee all updated and revised versions to the base system which <br />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 <br />Licensor, or its agent, Licensor reserves the right to invoice the <br />Licensee for such service on a time and materials basis at current <br />Licensor hourly rates plus actual out of pocket expenses. <br /> <br />D. Licensor shall not be responsible for consequential damages by <br />program 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 <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 and will not <br />increase in fee more than ten percent (10%) per year. Written notice of any <br />needed changes shall be provided to the other party not less than sixty days (60) <br />prior to the effective date for revised charges. All mutually agreed changes in fees <br />charged shall be incorporated by approved appendix of this agreement. Payment <br />shall be due and payable as per Appendix B of the Application Software Contract. <br /> <br />Section 2 - Payment for Additional Services <br /> <br />Any services approved in addition to the agreed provisions of Article II of <br />this agreement shall be invoiced on a time and material basis at the current <br />Licensor billing rate plus any actual out of pocket expenses. All invoices for <br /> <br />PAGE 3 OF 6 <br />