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HomeMy WebLinkAbout2007-10-16; City Council; 19204; Microsoft Enterprise Agreement ProgramCITY OF CARLSBAD - AGENDA BILL AB# MTG DEPT. 19,204 10/16/07 IT APPROVING ENROLLMENT IN THE MICROSOFT ENTERPRISE AGREEMENT PROGRAM AND PURCHASE OF MICROSOFT SOFTWARE LINCENSES FROM COMPUCOM SYSTEMS, INC. DEPT. HEAD <&* CITY ATTY. /j^ CITYMGR. i^ RECOMMENDED ACTION: Adopt Resolution No. 2007-276 approving enrollment in Microsoft's Enterprise Agreement program and the purchase of Microsoft software products under the Enterprise Agreement from CompuCom Systems, Incorporated. ITEM EXPLANATION: The City uses a variety of Microsoft software in its computing environment. This software includes desktop operating systems, office productivity tools and database systems. The City currently purchases Microsoft products under an agreement titled the Select Agreement (SA). Under the SA the City purchases Microsoft software as a one time expense, without upgrade support rights. Consistent with the citywide information technology strategic direction, the Information Technology (IT) Department is in the process of utilizing additional Microsoft software products. This commitment to additional Microsoft products is to both simplify and enhance the computing services IT provides to internal and external customers. With the increased commitment to Microsoft products, it is advantageous to purchase Microsoft products under its new agreement titled the Enterprise Agreement (EA). Microsoft's EA is a volume purchasing agreement available to large businesses and government entities. The EA is a three-year commitment that permits software purchases to be amortized over that three-year period. Under the EA each software purchase includes both the software licenses and upgrade support rights. At the end of the three-year term the software licenses will be paid in full and the City will have the option to renew for continuous upgrade support. Compared to the SA, the EA is a more cost-effective way to stay current on Microsoft's latest technology across the organization. It simplifies license management by providing automatic upgrades to new versions of products. Other benefits under the EA include an additional 15% discount over SA pricing, technical training vouchers for IT staff, online end-user training (eLearning) for all City staff and at home use of City licensed Microsoft software. Under the at home use program employees can obtain a licensed copy of most Microsoft Office desktop programs to use on their home computer. Employees pay only for media (CDs), shipping, and handling. DEPARTMENT CONTACT: Gordon Peterson - gpete@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED «rD D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES an D D Page 2 The purchase of Microsoft software licenses under the Enterprise Agreement (EA) from CompuCom Systems, Inc. represents the best value to the City consistent with Carlsbad Municipal Code, Chapter 3.28 - Purchasing. The EA was competitively bid by the Microsoft Corporation and awarded to five resellers. CompuCom Systems, Inc. is one of the five authorized resellers and offered the lowest overall price to the City. The City has a long-standing successful procurement and services relationship with CompuCom Systems and in past engagements they have proven to be very knowledgeable on Microsoft products. Additionally, CompuCom has a local Southern California presence, offers in-house technology services and has the ability to provide technology services under the California Multiple Award Schedule (CMAS) umbrella. The process of migrating from the existing systems to a Microsoft environment will begin with a technology assessment and design process. This process would normally cost the City approximately $21,000; however CompuCom and Microsoft have agreed to fund the cost of this work from the proceeds of the EA contract. FISCAL IMPACT: The total three-year cost of the Microsoft software licenses and upgrade support is $757,800. This amount is amortized over a three-year period resulting in annual payments of approximately $252,600. At the end of the three-year term the software license will be paid in full and the City can elect to renew upgrade support only. If the City chooses to continue upgrade support, the annual support cost will be approximately 60% of the combined costs of the license and support costs, or approximately $152,000. Funding for the acquisition of Microsoft software licenses has been planned for and $253,000 is available in the Information Technology's department budget for the first-year commitment. Subsequent years (two and three) will be requested and shown in future Information Technology's Department budget. Assuming continued use of Microsoft software by the City, acquisition of Microsoft software under the EA compared to the SA results in a net savings to the City of over $380,000 for the three-year period. With the increased use of Microsoft products the IT Department will be replacing the current GroupWise email system with Microsoft Outlook email and the current file server operating system Netware with Microsoft Windows. The costs for these systems are similar and therefore are offsetting. Consistent with strategic direction of the IT Department, migrating more fully to a Microsoft platform simplifies the technology environment - taking the City from three operating systems to two operating systems. This reduction of complexity supports the concentration of skills, and is in line with the IT Department's future plan to migrate the City's UNIX application to a Windows based solution. The final transition to a single operating system will mean easier system integration and enhanced IT service levels to City staff. The transition to EA also provides City staff with home use rights. This opportunity should increase staff skill levels, creating a more effective worker, with fewer calls to the helpdesk and less down-time. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15738, this contract does not constitute a "project" within the meaning of CEQA and therefore, does not require an environmental review. EXHIBITS: 1. Resolution No, 2007-276 2. Microsoft Enterprise Agreement Terms and Conditions. 3. Enrollment form for Microsoft's Enterprise Agreement # 01E62044. Page 3 4. Price quote from CompuCom Systems, Inc. dated 01/3/2007 for Microsoft software under Microsoft's Enterprise Agreement for years one, two and three. 1 RESOLUTION NO. 2007-276 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING 3 ENROLLMENT IN THE MICROSOFT ENTERPRISE 4 AGREEMENT PROGRAM AND THE PURCHASE OF MICROSOFT SOFTWARE LINCENSES FROM 5 COMPUCOM SYSTEMS. INC. 6 WHEREAS, the City of Carlsbad has determined the need to acquire new and 7 additional Microsoft software licenses and has determined the best method to purchase 8 said software licenses is under Microsoft's Enterprise Agreement (EA) program; and 9 WHEREAS, enrollment in the EA is required to purchase Microsoft software 10 using this volume purchasing agreement; and 11 WHEREAS, CompuCom Systems Incorporated is an authorized Microsoft 12 product reseller under the EA; and WHEREAS, after careful review and evaluation, the Information Technology 15 Department recommends enrollment in Microsoft's EA and purchase of Microsoft 16 software products and licenses from CompuCom Systems, Inc. under the Enterprise 17 Agreement; and 18 WHEREAS, CompuCom Systems Inc. and Microsoft Corporation have agreed to 19 provide at no cost the City services related to the preparation of a technology 20 assessment and design process necessary to identify the proper products and 21 implementation process for a successful migration to Microsoft products; and 22 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 23 Carlsbad, California, as follows: 25 1. That the above recitations are true and correct. 26 2. That enrollment in Microsoft's EA program is hereby approved and the Mayor 27 is authorized to execute all required documents on behalf of the City. 28 1 3. That the purchase of Microsoft software from CompuCom Systems, Inc. 2 pursuant to Microsoft's EA number 01E62044 provides the best value to the City consistent with Carlsbad Municipal Code, Chapter 3.28, is hereby approved and 4 3 the Mayor is authorized to execute all required documents or purchase orders on 5 behalf of the City. 6 4. That the purchase of Microsoft software from CompuCom Systems, Inc. under 7 Microsoft's EA shall not exceed $253,000.00 for year one of a three year8 agreement, as further described in the price quote dated October 9, 2007 for the 10 City of Carlsbad by CompuCom Systems, Inc. 11 5. That funding for subsequent years two and three may be appropriated at the 12 time Information Technology's Department budget is brought forth and approved. 13 6. That the City accepts the donation of services related to the preparation of a 14 technology assessment and design study, valued at approximately $21,000 from CompuCom Systems, Inc. and Microsoft Corporation, and the Mayor is 16 authorized to sign the Letter of Agreement and donation of in kind services dated 17 October 4, 2007. 18 19 " 20 21 // 22 // 23 // 24 // 25 // 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 16th day of October, 2007, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard, Nygaard NOES: None ABSENT: None CCAUDE A ATTEST: >, Mayor LORRAINE M. WOOD, City Clerk (SEAL). CLERK'S COPY Microsoft Enterprise Agreement - Amendment-1 Enterprise Agreement number Microsoft affiliate to complete This amends the Microsoft State and Local Government Enterprise Agreement identified above between the County of Riverside and MICROSOFT LICENSING, GP (the "agreement"). This amendment provides changes pursuant to the requests of the County of Riverside and allows for an 11 month open enrollment period. All terms used but not defined in this amendment will have the meanings assigned to such terms in the agreement. I. Amendment. 1. A new Section 19, special reference prices, is hereby added to the Enterprise Agreement, as follows: Notwithstanding any contradictory terms contained in sections 1,2,3,4 or 6 the following shall apply: a. Additional definitions. The following additional definitions shall apply to this Section 19: "Aggregate CAL Desktop Count" means the aggregate number of qualified desktops under Enrollments associated herewith for which any combination of the following products has been chosen as an enterprise product as of the Offer Deadline: (i) Microsoft BackOffice Client Access License ("BackOffice CAL"); or (ii) Microsoft Core Client Access License ("Core CAL"); "Aggregate Desktop Count" means the Aggregate CAL Desktop Count, Aggregate Office Desktop Count, and/or Aggregate Windows Desktop Count, as applicable; "Aggregate Office Desktop Count" means the aggregate number of qualified desktops under Enrollments associated herewith for which either (i) Microsoft Office Standard Edition ("Office Standard") or (ii) Microsoft Office Professional Edition ("Office Professional") has been chosen as an enterprise product as of the Offer Deadline; "Aggregate Windows Desktop Count" means the aggregate number of qualified desktops under Enrollments associated herewith for which the Microsoft Windows Professional desktop operating system has been chosen as an enterprise product as of the Offer Deadline; "CAL Family'' means any of the following enterprise products: (i) BackOffice CAL; and/or (ii) Core CAL; "Component Product" means any enterprise product listed on the table on Attachment A hereto; "Initial Desktop" means, with respect to any Enrollment, the number of qualified desktops enrolled under such Enrollment as of its effective date; County of Riverside EA amendment 1 Page 1 of 7 ORIGINAL "Microsoft BackOffice Client Access License*and "BackOffice CAL" means each of the following Client Access Licenses, when purchased together as a suite: (i) Windows CAL; (ii) Exchange CAL; (Hi) SQL CAL; and (iv) SMS CAL; "Microsoft Core Client Access License "and "Core CAL" means each of the following Client Access Licenses, when purchased together as a suite: (i) Windows CAL; (ii) Exchange CAU (Hi) SharePoint CAL; and (iv) SMS CAL; "Non-Platform Enrollment" means any Enrollment associated herewith which is not a Platform Enrollment; "Offer Deadline" means August 1, 2004; "Office Family" means either of the following enterprise products: (i) Office Professional; or (ii) Office Standard; "Open Enrollment Period" means the period which begins on September 1, 2003, and which ends on the Offer Deadline; "Participating Affiliate"means an eligible affiliate which executes an Enrollment during the Open Enrollment Period; "Platform Enrollment" means any Enrollment associated herewith for which each of the following is a chosen enterprise product: (I) either (i) Office Standard or (ii) Office Professional; and (II) Microsoft Windows Professional desktop operating system; and (III) either (Hi) BackOffice tAL or (Iv) Core CAL "Pre-Deadline Volume Level" means, with respect to a particular Product Family, the price level by which the reference prices for enterprise products in such Product Family, for Enrollments executed during the Open Enrollment Period, shall be determined as set forth in this Section 19; and "Product Family" means any of the following collections of enterprise products, as defined in this Section 19: (i) Office Family; (ii) Windows Family; and/or (Hi) CAL Family; "Post-Deadline Volume Level" means, with respect to a particular Product Family, the price level by which the reference prices for enterprise products in such Product Family, for Enrollments executed after ffje Offer deadline, shall be determined as set forth in this Section 19; and "Windows Family" means the following enterprise product: Microsoft Windows Professional desktop operating system. "Renewal Term" shall have meaning as set forth in section 11 e of the agreement. b. Determination of Pre-Deadline and Post-Deadline Volume Level. The Pre-Deadline Volume Level for the Office Family shall be determined based upon the Aggregate Office Desktop Count, according to the table in the following paragraph. The Pre-Deadtine Volume Level for the Windows Family shall be determined by the Aggregate Windows Desktop Count, according to the table in the following paragraph. County of Riverside EA amendment 1 Page 2 of 7 The Pre-Deadline Volume Level for the CAL Family shall be determined by the Aggregate CAL Desktop Count, according to the table in the following paragraph. The following table shall be used to determine the Pre-Deadline Volume Levels for each of the Product Families: Pre-Deadline Volume Level Pre-Deadline Volume Level A Pre-Deadline Volume Level B Pre-Deadline Volume Level C Pre-Deadline Volume Level D Pre-Deadline Volume Level D- 2% Pre-Deadline Volume Level D- 4% Pre-Deadline Volume Level D- 6% Pre-Deadline Volume Level D- 7.5% Aggregate Desktop Count Between 250 and 2,399 qualified desktops Between 2,400 and 5,999 qualified desktops Between 6,000 and 14,999 qualified desktops Between 15,000 and 39,000 qualified desktops Between 40,000 and 59,000 qualified desktops Between 60,000 and 79,000 qualified desktops Between 80,000 and 119.000 qualified desktops Between 120,000 or more qualified desktops The Post-Deadline Volume Level for the Office Family shall be determined based upon the Aggregate Office Desktop Count, according to the table in the following paragraph. The Post-Deadline Volume Level for the Windows Family shall be determined by the Aggregate Windows Desktop Count, according to the table in the following paragraph. And the Post-Deadline Volume Level for the CAL Family shall be determined by the Aggregate CAL Desktop Count, according to the table in the following paragraph. The following table shall be used to determine the Post-Deadline Volume Levels for each of the Product Families: Post-Deadline Volume Level Post-Deadline Volume Level A Post-Deadline Volume Level B Post-Deadline Volume Level C Aggregate Desktop Count Between 250 and 2,399 qualified desktops Between 2,400 and 5,999 qualified desktops Between 6,000 and 14,999 qualified Corresponding Enterprise Agreement Volume Level A B C County of Riverside EA amendment 1 Page 3 of7 Post-Deadline Volume Level D Post-Deadline Volume Level D Post-Deadline Volume Level D Post-Deadline Volume Level D Post-Deadline Volume Level D desktops Between 15,000 and 39,999 qualified desktops Between 40,000 and 59,999 qualified desktops Between 60,000 and 79,999 qualified desktops Between 80,000 and 119,999 qualified desktops 120,000 or more qualified desktops D D-2% D-4% D-6% D-7.5% c. Determination of reference prices. For Non-Platform Enrollments signed During the Open Enrollment Period, the following shall apply: • The Year 1 par-desktop reference price for each enterprise product covered by each such Non-Platform Enrollment, for each Initial Desktop irrespective of the number of qualified desktops under such Enrollment, shall be determined according to the Table at Part 1 of Attachment A; • The Year 2 through Year 5 per-desktop reference prices, respectively, for each enterprise product covered by each such Non-Platform Enrollment, for each Initial Desktop, shall be determined based upon the Pre-Deadline Volume Level for the Product Family in which each such enterprise product is contained, according to the Table at Part 1 of Attachment A; • The per-desktop true up reference price for each enterprise product covered by each such Non-Platform Enrollment, for each qualified desktop added to the Enrollment during the first, second and third years, respectively, of the term of such Enrollment, shall be determined based upon the Pre-Deadline Volume Level for the Product Family in which each such enterprise product is contained, according to the Tables at Parts 2, 3, and 4, respectively, of Attachment A. For Platform Enrollments signed during the Open Enrollment Period, the following shall apply: • The Year 1 per-desktop reference price for each enterprise product covered by each such Platform Enrollment, for each Initial Desktop irrespective of the number of qualified desktops under such Enrollment, shall be determined County of Riverside EA amendment 1 Page 4 of7 according to the Table at Part 1 of Attachment A, less a discount of fifteen percent (15%) or five percent (5%) for SA only orders. Such 15% (5% for SA only orders) discount shall be applied to the sum of the reference prices of the individual enterprise product components. For example, if the sum of the annual per-desktop reference prices for the enterprise products covered by a Platform Enrollment, as shown on Attachment A, is $307.00, then the discount applied shall be {$307.00x15=} $46.05, and the resulting annual per-desktop reference price for such enterprise products, in aggregate, shall be: { $307.00 - $46.05 = } $260.95.; • The Year 2 and Year 3 per-desktop reference prices, respectively, for each enterprise product covered by each such Platform Enrollment, for each Initial Desktop shall be determined based upon the Pre-Deadline Volume Level achieved by Participating Affiliates, pursuant to the terms and conditions of this Section 19, for the Product Family in which each such enterprise product is contained, according to the Table at Part 1 of Attachment A, less a discount of fifteen percent (15%) or five (5%) for SA only orders; • The per-desktop true up reference price for each enterprise product covered by each such P/affomi Enrollment, for each qualified desktop added to the Enrollment during the first, second and third years, respectively, of the term of such Enrollment, shall be determined based upon the Pre-Deadline Volume Level for the Product Family in which each such enterprise product is contained, according to the Tables at Parts 2, 3, and 4, respectively, of Attachment A, less a discount of fifteen percent (15%) or five (5%) for SA only orders. For Enrollments signed after the Offer Deadline, the following shall apply: • The Year 1 through Year 5 per-desktop reference prices, respectively, for each enterprise product on each Initial Desktop shall be determined based upon the Post-Deadline Volume Level achieved by Participating Affiliates, pursuant to the terms and conditions of this Section 19, for the Product Family in which each such enterprise product is contained, according to the then-current published Microsoft reference prices for each such enterprise product which correspond to the applicable Post-Deadline Volume Level as set forth at that time. The Product Family per-desktop reference price for any enrollment signed August 1, 2004 through August 31, 2005 shall not increase by more than 10% above the published price for the appropriate Post- Deadline Volume Level as of the effective date of this agreement; • The per-desktop true up reference price for each enterprise product for each qualified desktop added to the Enrollment during the first, second and third years, respectively, of the term of such Enrollment, shall be determined based upon the Post-Deadline Volume Level for the Product Family in which each such enterprise product is contained, according to the then-current published Microsoft reference prices for each such enterprise product which correspond to the applicable Post-Deadline Volume Level as set forth at that time. The Product Family per-desktop true-up reference price for any enrollment signed August 1, 2004 through August 31, 2005 shall not increase County of Riverside EA amendment 1 Page 5 of 7 by more than ten (10%) above the published price for the appropriate Post- Deadline Volume Level as of the effective date of this agreement. d. additional terms and conditions. The parties acknowledge and agree that (!) the BackOffice CAL SA will not be offered in any Enrollment after August 1, 2004; (ii) the BackOffice CAL USA will not be offered in any Enrollments after September 30,2003 and (Hi) notwithstanding the date upon which this Enterprise Agreement expires or is otherwise terminated, toe method listed above in this Section 19 by which reference prices shall be determined shall cease to apply on new enrollments entered into after August 31, 2005. You acknowledge, on behalf of your enrolled affiliates, that the reference price (and therefore, presumably, the price the reseller, as such term "reseller" is defined in the agreement and remains effective herein) charges each such enrolled affiliate for both (i) the second and third annual payments, and (ii) true up payments at each anniversary, may increase pursuant to tf?e terms of this Section 19. Such price increase for the payments stated above wilt result, with respect to an enrolled affiliate's Enrollment, in the event that less than 120,000 qualified desktops, in aggregate, are enrolled in Enrollments covering each of the Product Families (or the Product Family) covered by that enrolled affiliate's Enrollment, during the Open Enrollment Period. It is recommended that affiliates not enter into Enrollments hereunder unless (a) they are aware of such possibility that their price may increase as stated above; and (b) they anticipate that sufficient budget will be approved to cover such increased payment amount. You acknowledge and agree that there may be certain instances in which certain Enrollments executed by your affiliates, whether under this Enterprise Agreement or otherwise under a separate Enterprise Agreement or Enterprise Subscription agreement, may have unit reference prices other than those shown on Attachment A or otherwise priced pursuant to the terms of this Section 19. Such instances include, but are not limited to those Enrollments: (i) that were executed prior to the Open Enrollment Period; (ii) that contain other enterprise products not shown on attachment A; (Hi) for which we negotiate a special payment schedule or ramped installment payments upon the condition that the reference price of such Enrollment be uplifted to account for the time value of money; (iv) which renew previously expired Enrollments and therefore qualify for renewal pricing; and (v) for which a special price is negotiated to match the equivalent Microsoft Select estimated retail price for sufficient licenses, Upgrade Advantage and/or Software Assurance to otherwise provide the equivalent license and upgrade rights provided pursuant to an Enrollment. Except as provided by the following paragraph, those terms of this Section 19 which were modified by this Amendment One to this Enterprise Agreement, and which such terms specifically apply to special reference prices and adjustments thereto for enrollments signed after September 1, 2003, shall not apply to any Enrollments which were executed prior to the execution of such this Amendment One. Reference prices are provided only for the purpose of comparison. Actual pricing and payment terms will be determined by agreement between each enrolled affiliate and its chosen reseller. We will provide each reseller with a list of reseller prices which corresponds to the reference prices in Attachment A. II. Effect of Amendment. County of Riverside EA amendment 1 Page 6 of 7 Except as specifically amended by this amendment, all provisions of the agreement shall remain unchanged and in full force and effect. You must execute and return 2 copies of this amendment to the address below on or before September 1, 2003, in order for the terms and conditions of this amendment to be considered by MICROSOFT LICENSING, GP. MICROSOFT LICENSING, GP Attn: Dept. 551, Volume Licensing 6100 Neil Road, Suite 210 Reno, NV 89511-1137 Name County of Riverside X7 ,• / Signature ., / /-' X/ Printed Name Michael S. Lee Printed Title Procurement Contract Specialist Signature Date, ^X'Vt'7 f^^^~~l'C 2 o& 3S •"/ v J _> •— f -^ | ] +* ^ ** -^ MICROSOFT LICENSING, GP Signature ^jfi ^£^ Printed Name PAUL NELSON n.™. Printed Title CONTRACT AUMINIS FHATOH Effective Date KH-Q3 fe.Prepared by: Forrest Silverman Licensing Executive FORM APPROVED'TY COUNSEL County of Riverside EA amendment 1 Page 7 of 7 Mkrojoft Microsoft Enterprise Agreement - State and Local (NOT FOR USE WITH MICROSOFT BUSINESS AGREEMENT) Enterprise Agreement number Microsoft affiliate to complete This Microsoft Enterprise Agreement is entered into between the following entities as of the effective date identified below. Each party will notify the other in writing if any of the information in the following table changes. Customer Name of Entity County of Riverside Street Address 2980 Washington Street City State/Province Riverside, CA 92504 Country Postal Code United States Microsoft Account Manager Name Contact Name (This persoruianfills access'to online information and receives notices unless a different contact » provided below ) Contact E-mail Address (required for online access) mikelee@co . riverside . ca . us Phone 909-955-4942 Fax 909-955-4948 Microsoft Account Manager Email Contracting Microsoft Affiliate MSLI, GP - 6100 Neil Road, Suite 210 - Reno, Nevada USA 8951 1-1 137 - Dept. 551, Volume Licensing If online access and < complete this secf/o- jmeone or some place other than above. Name of Entity County of Riverside Information Technology Street address 4080 Lemon Street, 10th Fl. Contact Name John Alva Contact E-mail Address j alva@co.riverside.ca.us City State/Province Riverside, CA 92502 Phone 909-955-8325 Country Postal Code Fax United States 909-955-3611 SLG Microsoft Enterprise Agreement v6.1 (Standalone)(indirect) (North America) March 1, 2003 Cover Page 1of15 CLERK'S COPY If duplicate etc addition to tho Name of Entity Street address City Country ctronic contractual notices should be provided (o someone or some place in abov- . complete this section. County of Riverside Information Technology 4080 Lemon Street, 10th Fl State/Province Riverside, CA 92502 Postal Code United States Contact Name Shirion Shropshire Contact Email Address (required for electronic notice) sshropshgco . rivers ide . ca . Phone 909-955-3703 Fax 909-955-3611 This agreement consists of (1) this cover page, (2) the attached terms and conditions, (3) the Product List, (4) the product use rights applicable to products licensed under this agreement, and (5) any enrollment entered into under this agreement. Effective date. If the first enrollment entered into under this agreement is given an effective date that is earlier than the date this agreement is signed by us, the effective date of this agreement will be that earlier date. Otherwise, this agreement will be effective on the date it is signed by us. Notices to Microsoft should be sent to: MSLI, GP 6100 Neil Road, Suite 210 Reno, Nevada USA 89511-1137 Dept. 551, Volume Licensing Copies should be sent to: Microsoft Law and Corporate Affairs One Microsoft Way Redmond, WA 98052 USA Volume Licensing Group (425) 936-7329 fax By signing below, the parties agree to be bound by the terms of this agreement, and you represent that the information you have provided on this cover page is accurate. Customer Name of Entity County of Riverside /J Signature / ? //I/^^ '4?^64£2~- Printed Name Michael S. Lee Printed Title Procurement Contract Specialist Signature Da*6 / P/4-/0? /if/*?- ^ 2 oo 3 f ' FORM APPROVEDCOUNTY COUNSEL Contracting Microsoft affiliate MSLI, GP Signature <-~v. /7 >^ ^L^^i^-' Printed Name PAUL NELSON Printed Title ^UN ' ^^ '' ADMINISTRATOR Signature Date nrT n , «fln.(date Microsoft affiliate countersigns) UL 1 U 1 tUU J Effective Date (may be different than our signature date) 1 1"V~ 1 "" Q~^ SLG MIC (Standak>ne)(indirect) (North America) March 1,2003 ORIGINAL Cover Page Page 2 of 15 SEP 2 3 2003 Terms and Conditions 1. ftofin/f/ons. In this agreement, "you" means the entity that has entered into this agreement with us, and "we" or "us" means the Microsoft entity that has entered into this agreement or an enrollment In addition, the following definitions apply: "additional product" means any product other than an enterprise product that an enrolled affiliate chooses to license under its enrollment; "affiliate" means (a) with regard to you, (i) any government agency, department, instrumentality, division, unit or other office of your state or local government that is supervised by or is part of you, or which supervises you or of which you are a part, or which is under common supervision with you; (II) any county, borough, commonwealth, city, municipality, town, township, special purpose district, or other similar type of governmental instrumentality established by the laws of your state and located within your state's jurisdiction and geographic boundaries; and (iii) any other entity in your state expressly authorized by the laws of your state to purchase under state contracts; provided that a state and its affiliates shall not, for purposes of this definition, be considered to be affiliates of the federal government and its affiliates; and (b) with regard to us, any legal entity that we own, that owns us, or that is under common ownership with us; "available" means, with respect to a product, that we have made licenses for that product available for ordering under the Enterprise Agreement program; "enrolled affiliate" means an entity, either you or any one of your affiliates, that has entered into an enrollment under this agreement; "enrollment" means the document that you or your affiliate submits under this agreement to sign up for the Enterprise Agreement program and make an initial selection of products; "fix(es)" means product service packs and other fixes that we release generally; "enterprise" means the enrolled affiliate and the affiliates it chooses on its enrollment to include in its enterprise; "enterprise product" means any product that we designate as an enterprise product and that an enrolled affiliate chooses to license under its enrollment (enterprise products may only be licensed on an enterprise-wide basis under the Enterprise Agreement program); "License" means any one of those offerings identified in the Product List (including standard licenses, and upgrades for desktop operating systems) that provides the right to run the version of the product for which it is ordered; "L&SA" means a License and Software Assurance for any product ordered; "order" means an order on a form that is acceptable to the reseller; "product" means any product available to license as described on the Product List; "Product List" means, with respect to any licensing program, the statement published by Microsoft from time to time on the World Wide Web at http://microsoft.com/licensinQ. or at a successor site that we identify, that identifies trie products that are or may be made available under each of the volume licensing programs, and identifies which products are available to Enterprise Agreement program customers and any product-specific conditions or limitations on the acquisition of licenses for those products; "qualified desktop" means any personal desktop computer, portable computer, workstation or similar device that is used by or for the benefit of an enrolled affiliate or any affiliate included in its enterprise and that meets the minimum requirements for running any of the enterprise products. Qualified desktops do not include: (i) any computer that is designated as a server and not used as a personal computer, (ii) any SLG Microsoft Enterprise Agreement v61 Terms and Conditions Page 3 of 15 (StandatoneXindired) (North America) March 1,2003 system dedicated to run ONLY tine-of-business software (e.g., an accounting or bookkeeping program used by an accountant, or a computer-aided design program used by an engineer or architect); or (iii) any system running an embedded operating system (e.g. Windows 9.x for embedded, Windows XP embedded); "renewal order* means the order that an enrolled affiliate submits at the beginning of any renewal term to renew Software Assurance coverage for products previously ordered under its enrollment; "reseller" means a large account reseller authorized by us to resell licenses in an enrolled affiliate's area under the Enterprise Agreement program; "run" or "use* means to copy, install, use, access, display, run other otherwise interact with; and "Software Assurance" means, for any underlying licensed product for which it is ordered, the right to upgrade to, and run, the latest version of that product that we make available during the covered period. 2. How the Enterprise Agreement program works. The Enterprise Agreement program gives customers that wish to license one or more of Microsoft's platform products across their enterprise the means to ensure that their entire enterprise will be licensed. You and your affiliates can participate in this program by submitting one or more enrollments under this agreement. On the enrollment, the enrolled affiliate will designate the scope of its enterprise and make the initial selection of enterprise products and any additional products it wishes to license. Each enrollment must include at least one of those products that we make available to license as an enterprise product. We may refuse to accept an enrollment if we have a business reason for doing so. Notwithstanding any other provision of this agreement, only enrolled affiliates identified in an enrollment will be responsible for complying with the terms of that enrollment, including the terms of this agreement incorporated by reference in that enrollment. a. Establishing price levels. Each product is assigned to one of the following pools: applications, systems or servers. An enrolled affiliate's reference prices are based on the "price level" for which it qualifies in each individual product pool. Price levels are established separately for each enrollment as described in this subsection. Product pools from which an enterprise product has been ordered. For each product pool from which an enrolled affiliate orders an enterprise product, the price level throughout the initial term of the enrollment for any enterprise products or additional products ordered from that pool will be the price level for which the enrolled affiliate qualifies based on its initial number of qualified desktops (the enrolled affiliate will be provided with a table in its enrollment to determine its initial price level). Product pools from which no enterprise product has been ordered. For any product pool from which the enrolled affiliate does not order an enterprise product, the price level for additional products within that pool will be price level "A" throughout the term of the enrollment (including any renewals). Renewal price levels. Price levels for pools from which an enterprise product has been ordered will be reset for each renewal term based upon the enrolled affiliate's total number of qualified desktops as of the date of the renewal order for that renewal term. b. Deriving prices from price levels. The enrolled affiliate's reference prices are determined as follows. For products covered by the initial order. For each product covered by an enrolled affiliate's initial order, the enrolled affiliate's reference price for all copies of that product made at any time during the initial enrollment term (including copies ordered by true up as described in subsections 3(c) (Placing annual "true up" orders to account for additional desktops) and 4(c) (Placing annual "true up" orders to account for additional copies)) will be provided in the enrollment and will not change throughout the initial enrollment term. SLG Microsoft Enterprise Agreement v6.1 Terms and Conditions Page 4 of 15 (StandatoneMindimd) (North America) March 1,2003 For additional products added after the initial order. For each new additional product first added after signing of the enrollment, the enrolled affiliate's reference price for all copies of that product made at any time during the initial enrollment term (including copies ordered by true up) will be that price (including the true up price) in effect for the enrolled affiliate's price level for that product as of the date of its first order for that product. For products renewed in a renewal order. Prices are re-established at the beginning of each renewal term. For each enterprise product and each additional product being renewed, the enrolled affiliate's renewal price for all copies of that product made during the renewal term (including copies ordered by true up) will be the price (including the true up price) in effect for the enrolled affiliate's renewal price level for that product as of the date of the renewal order. For additional products addsd during a renewal term. For each new additional product first added during a renewal term, the enrolled affiliate's reference price for all copies of that product made at any time during that particular renewal term (including copies ordered by true up) will be the price (including the true up price) in effect for the enrolled affiliate's renewal price level in effect for that product as of the date of the enrolled affiliate's first order for that product. How your enrolled affiliates acquire licenses. An enrolled affiliate will acquire its licenses by executing an enrollment under which it acquires its licenses through its chosen reseller. Orders under an enrollment will be made out to and submitted to the enrolled affiliate's reseller. We will invoice that reseller according to the terms in the applicable enrollment. While such enrollment will contain reference prices, the reseller and the enrolled affiliate will determine the enrolled affiliate's actual price and payment terms. c. Choosing and maintaining a reseller. Resellers. Each enrolled affiliate that signs an enrollment must choose and maintain a reseller in the enrolled affiliate's area. Resellers are authorized to resell our product licenses, but act independently and have no authority to bind us. Change of reseller. If an entity ceases to be a reseller, the enrolled affiliate must choose a replacement. If an enrolled affiliate intends to change its reseller, a change will only be effected on the next anniversary of the enrollment effective date. To change a reseller, the enrolled affiliate must submit written notice to us and the former reseller, on a form that we provide, at least 30 days prior to the anniversary on which the change is to take effect. In the case of a change of reseller, the enrolled affiliate is responsible for ensuring that all its obligations to the former reseller are met. e. Reporting country of use. On each order (initial, subsequent, true up or renewal), an enrolled affiliate must report to us: • For enterprise products - the countries where its qualified desktops covered by that order are located and the approximate number of such qualified desktops in each of those countries, and - For additional products - the countries where the enrolled affiliate or its affiliates run those copies of the additional products covered by that order and the approximate number of copies run in each of those countries. This information is for our internal use only and does not change the prices we provide for the products licensed under this agreement. How to order enterprise product licenses. a. Placing the initial order. Each enrolled affiliate must submit an initial order for the enterprise products it selects on its enrollment. Except as provided in the following paragraph, the order must be for L&SA for all enterprise products. SLG Microsoft Enterprise Agreement v6.1 Terns and Conditions Page 5 of 15 (StandalorwXindiracI) (North America) March 1,2003 When is the enrolled affiliate eligible to order only Software Assurance for an enterprise product? An enrolled affiliate may order Software Assurance for the enterprise products it selects without the need to simultaneously order a License if the enrolled affiliate or any of the affiliates in its enterprise have obtained perpetual licenses for that product on an enterprise-wide basis under a previous "Enterprise Enrollment" (defined below), and the new enrollment becomes effective no later than the day following the date of expiration of that "Enterprise Enrollment." The Software Assurance order must be for the number of qualified desktops covered as of the expiration of that "Enterprise Enrollment" For all other qualified desktops included in an enrollment submitted under this agreement, the enrolled affiliate must order L&SA. The term "Enterprise Enrollment,' as used in this section 3, means (i) a Microsoft Enterprise Select Agreement; (ii) an enterprise enrollment under a separate Microsoft Select Master Agreement or Microsoft Enterprise Agreement; (iii) any enterprise subscription enrollment entered into under a separate Microsoft Enterprise Subscription Agreement; or (iv) any other enrollment submitted under the Microsoft Enterprise Agreement identified on the cover page. b. Adding new enterprise products. An enrolled affiliate may only add new enterprise products by entering into a new enrollment. c. Placing annual "true up" orders to account for additional desktops. Each enrolled affiliate must determine the current number of qualified desktops in its enterprise: (i) at each anniversary of the effective date of its enrollment (including anniversaries during any renewal); and, (ii) at the expiration or early termination of its enrollment. • If the desktop count has increased. If the number of qualified desktops has increased, the enrolled affiliate must submit an order for L&SA covering those additional desktops. The enrolled affiliate must place the order within 15 days following the anniversary of the enrollment effective date, expiration or termination. • If the desktop count has not increased. If the number has not increased, the enrolled affiliate must submit an update statement confirming this fact on the form we provide within that 15-day period. d. Reorganizations, Consolidations, and Privatizations. If the number of qualified desktops in an enterprise changes by more than ten percent as a result of a reorganization, consolidation, or privatization of an enrolled affiliate, we will work with the enrolled affiliate in good faith to determine how to accommodate its changed circumstances in the context of this agreement. If an enrolled affiliate consolidates with a customer with an existing "Enterprise Enrollment," we will work with the enrolled affiliate in good faith to accommodate its changed circumstances in the context of this agreement. How to order additional product licenses. a. Placing the initial order. Each enrolled affiliate must submit an initial order for the additional products it has selected, if any, on its enrollment. Except as provided in the following paragraph, the order must be for L&SA for all copies of those additional products. When is the enrolled affiliate eligible to order only Software Assurance for an additional product? An enrolled affiliate may order Software Assurance for additional products it selects without the need to simultaneously order a License if the enrolled affiliate or any of the affiliates it includes in its enterprise has obtained perpetual licenses for those products with Upgrade Advantage, Software Assurance or any similar upgrade protection, and the new enrollment becomes effective no later than one day following the expiration of that upgrade protection. The order may be for up to the number of copies covered by such upgrade protection. An enrolled affiliate may also order Software Assurance alone in any other circumstances expressly permitted in the Product List. For all other copies included in an enrollment submitted under this agreement, the enrolled affiliate must order L&SA. SLG Microsoft Enterprise Agreement v6.1 Terms and Conditions Page 6 of 15 (Standalone)fmdiract) (North America) March 1,2003 b. Adding new additional products not previously ordered. Each enrolled affiliate may, during the remainder of the applicable initial enrollment or renewal term, run new additional products under its enrollment that were not part of the initial order. To do so, the enrolled affiliate must order L&SA in the month in which the product is first run, covering all copies of that product run as of the date of the order. For any additional copies of that product run after the date of that order, the enrolled affiliate must submit orders as described in subsection 4(c) (Placing annual "true up* orders to account for additional copies) below. c. Placing annual "true up" orders to account for additional copies. Each enrolled affiliate may, during the remainder of the applicable initial enrollment or renewal term, run additional copies of those additional products it previously ordered under subsections (a) and (b), provided that the enrolled affiliate places a true up order for L&SA for those additional copies. The enrolled affiliate must submit an order within 15 days after the next anniversary of the effective date of the enrollment (including anniversaries occurring during any renewal) following the date on which those copies were first run. For additional copies first run in the year in which an enrollment expires or is terminated, the enrolled affiliate must submit an order within 15 days following the expiration or termination date. d. Update statements. Each enrolled affiliate must submit an update statement within 15 days following each anniversary of the effective date of its enrollment, and after expiration or termination of its enrollment, on a form we provide, unless that enrolled affiliate (i) Is running only enterprise products under its enrollment, and (ii) it is not otherwise required to submit an update statement under subsection 3(c) (Placing "true up* orders to account for additional desktops) above. 5. How to confirm orders. We will publish information about orders placed by each enrolled affiliate, including an electronic confirmation of each order, on a password-protected site on the World Wide Web at http://licBnsing.microsoft.com or a successor site that we identify. Upon our acceptance of this agreement and enrollments entered into under this agreement, the contact identified for this purpose on the cover page will be provided access to this site. 6. License grant - what your enrolled affiliates are licensed to run. Upon our acceptance of the enrollment, the enrolled affiliate has the following rights during the term of its enrollment. These rights apply to the licenses obtained under an enrollment and are not related to any order or fulfillment of software media. • For enterprise products. The enrolled affiliate may run one copy of the latest version (or any prior version) of each enterprise product, on each qualified desktop. By including affiliates in its enterprise, the enrolled affiliate sublicenses this right to each of them subject to the terms of this agreement. • For additional products. The enrolled affiliate may run for its own benefit the number of copies of each additional product ordered in the latest version (or any prior version). If an affiliate included in any enrolled affiliate's enterprise runs any copies of an additional product under this agreement, those copies are sublicensee] from that enrolled affiliate subject to the terms of this agreement. The right to run any product licensed under an enrollment is temporary until: (i) the enrolled affiliate has paid all installments of the price for that product license and the applicable initial enrollment or renewal term during which that product license was ordered has expired or been renewed, or (ii) the enrolled affiliate is otherwise entitled to perpetual licenses upon early termination as provided in subsection 11(c) (Termination of an enrollment). SLG Microsoft Enterprise Agreement v61 Terms and Conditions Page 7 of 15 (Standalone)(indirect) (North America) March 1, 2003 Thereafter, the enrolled affiliate will have perpetual licenses to run the latest version available as of such date of expiration, renewal or termination (or any prior version), of each enterprise product in a number of copies equal to the total number of qualified desktops covered by the enrollment; and each additional product in the number of copies ordered during the applicable initial enrollment term or renewal term. In the case of early termination as provided in subsection 11(c) (Termination of an enrollment), if an enrolled affiliate chooses only to pay amounts due and payable as of the termination date, then the enrolled affiliate will instead have perpetual licenses for the number of copies specified in subsection 11(e (Effect of termination or expiration). Any perpetual licenses received through Software Assurance supersede and replace the underlying perpetual licenses for which that Software Assurance coverage was ordered. All perpetual licenses acquired under this agreement remain subject to the terms of this agreement and the applicable product use rights. This agreement, the applicable enrollment, the enrolled affiliate's order confirmation described in section 5 (How to confirm orders) above, and any documentation evidencing transfers of licenses as described in subsection 10(a) (How to transfer), together with proof of payment, will be the enrolled affiliate's evidence of all licenses obtained under its enrollment. 7. How to know what product USB rights apply. Except as otherwise described below, an enrolled affiliate's use of any product that it licenses from us is governed by product use rights specific to each product and version. The product use rights applicable to products licensed under each enrollment are as follows. a. For latest versions available as of an enrollment effective date. For the latest version of any product available on or before the enrollment effective date, the product use rights in effect on the enrollment effective date for that product and version apply. b. For versions and products that become available after an enrollment effective date. For any version of any existing product, or any new product, first made available after the enrollment effective date, the product use rights in effect on the date on which the version or product first becomes available apply (subject to our commitment on use rights below). c. For versions of a product that predate the latest version available as of an enrollment effective date. If an enrolled affiliate is using a version of any product licensed under its enrollment that became available prior to the version that was current on the enrollment effective date, the enrolled affiliate's use of the earlier version will be governed by the product use rights that would apply if the enrolled affiliate were using the version licensed under the enrollment, or in the case of Software Assurance or L&SA, the latest version that is or becomes available at any time during its enrollment. d. Microsoft's commitment on use rights. For all products - use rights fixed by version. We will not change an enrolled affiliate's product use rights under this agreement for any version of a product after it becomes available to that enrolled affiliate under its enrollment. For enterprise products - no detrimental use right changes in new versions. (i) For raw versions made available during the initial enrollment term. If we make available a new version of any enterprise product during the initial enrollment term and that new version is subject to certain use rights that are more restrictive than those that applied to a prior version under an enrollment that was or became available during the initial enrollment term, the enrolled affiliate may run that new version without being subject to those certain more restrictive use rights. (ii) For new versions made available during each renewal term. Upon each renewal of Software Assurance for an enterprise product, an enrolled affiliate's use of that product will SLG Microsoft Enterprise Agreement v6.1 Terms and Conditions Page 8 of 15 (StandaJone)(lndirect) (North America) March 1,2003 be governed by the use rights that apply to the latest version of that product available as of the date of that renewal, including any terms that are more restrictive than those that applied to a previous version of that product licensed by that enrolled affiliate under its enrollment during the preceding term. However, if during a renewal term we make available a new version of that same enterprise product with certain use rights more restrictive than those use rights that applied to a prior version licensed under an enrollment that was or became available during that same term, the enrolled affiliate may run the new version without being subject to those certain more restrictive use rights. (iii) New features or functionality. The right described in subsections (!) and (ii) above does not apply to product use rights that relate specifically to new features or functionality added to a new version. We will provide each enrolled affiliate with a copy of the applicable product use rights or will make them available either by publication on the World Wide Web at httD://microsoft.com/licensing or at a successor site that we identify, or by some other reasonable means. You acknowledge that you and your affiliates have access to the World Wide Web. We do not transfer any ownership rights in any licensed product, and we reserve all rights not expressly granted. In lieu of your obligation to indemnify us under various provisions of the product use rights, you will be responsible for any cost or damages arising from any claim to which your indemnity obligation would otherwise apply. 8. Software Assurance Membership. Throughout the term of its enrollment (including any renewal), each enrolled affiliate automatically qualifies as a member of Microsoft's Software Assurance Membership program. Membership may entitle the enrolled affiliates to special benefits. These benefits may be subject to additional terms and conditions. For a description of these benefits, an enrolled affiliate should consult its reseller or Microsoft account manager. 9. Making copies of software. a. Copies necessary for internal deployment Each enrolled affiliate may make as many copies of the products licensed under its enrollment as necessary to distribute the products to the users within its enterprise. All copies of any product must be true and complete copies (including copyright and trademark notices) and be made from CD-ROMs, disk sets or a network source, acquired from or made available by a Microsoft approved fulfillment source for that product. Each enrolled affiliate may also have a third party make and distribute copies in its place, but the enrolled affiliate is responsible for third-party actions to the same extent it would be if the third party were its employee. You and your affiliates must make reasonable efforts to make employees, agents and other individuals running a product aware that the product is licensed from us and may only be run or transferred subject to the terms of this agreement. b. Copies for training, evaluation and back-up. During the term of its enrollment (including any renewal), each enrolled affiliate and any affiliate included in its enterprise may (i) run up to 20 complimentary copies of any additional product in a dedicated training facility on their premises; (ii) run up to 10 complimentary copies of any product that we make available to license as an additional product for a 60-day evaluation period; and (iii) make and retain one complimentary copy of any licensed product for back-up or archival purposes for each of their distinct geographic locations. c. Re-imaging rights. If an enrolled affiliate or any affiliate included within its enterprise has licensed products from an original equipment manufacturer (OEM), through a retail source or under any Microsoft program other than this Enterprise Agreement program, it may use copies made from the media provided under the enrolled affiliate's enrollment in place of any copies made from the media provided through that separate source, so long as it complies with the following restrictions. SLG Microsoft Enterprise Agreement v61 Terms and Conditions Page 9 of 15 (Standak>ne)(indiract) (North America) March 1,2003 (i) The enrolled affiliate must have obtained a separate license from the separate source for each copy being replaced. (ii) The product, language, version and all components (in the case of product suites, such as Office) of the copies made from the media provided under an enrollment must be identical to the product, language, version and all components of the copies they replace. (iii) In the case of copies licensed from an original equipment manufacturer (OEM) or through a retail source, in addition to the other conditions outlined in this subsection 9(c), the product type (e.g. upgrade or full license) of the copies made from the media provided under an enrollment must be identical to the product type of the copies they replace. However, an enrolled affiliate may use copies of a desktop operating system made from the media provided under its enrollment in place of copies of the same desktop operating system obtained from a separate source, even though they may be of different types (I.e. one may be an upgrade and the other a full license), provided that the product, language and version are identical. The use of any copies made under this subsection 9(c) is subject to the terms and use rights provided with the copies being replaced, and nothing in this section creates or extends any warranty or support obligation. 10. Transferring licenses. a. How to transfer. An enrolled affiliate may transfer perpetual licenses ordered under an enrollment to an affiliate, or to an unaffiliated third party in connection with a privatization of the enrolled affiliate, as long as the enrolled affiliate provides us with prior written and signed notice, on a form that we provide, that includes: (i) the applicable enrollment number, (ii) the quantity of licenses being transferred by product and version; (iii) the name, address and contact information of the transferee; and (iv) any other information that we may reasonably request. For all other transfers of licenses, our written consent is required. We will not withhold our consent unreasonably. No license transfer will be valid unless the enrolled affiliate provides to the transferee, and the transferee accepts in writing the applicable product use rights (as provided in subsection 7(a) (For latest versions available as of an enrollment effective date) and (b) (For versions and products that become available after an enrollment effective date), use restrictions, limitations of liability, and the transfer restrictions in this section 10. Any transfer made in violation of the requirements or restrictions of this section will be void. b. When transfers are not permitted. An enrolled affiliate may not transfer (i) licenses on a short-term basis (either to third parties or by reassignment to different users or devices internally), (ii) temporary rights to use products, (iii) Software Assurance coverage, (iv) perpetual licenses for any version of any product acquired through Software Assurance separately from the underlying perpetual licenses for which that Software Assurance coverage was ordered; or (v) upgrade licenses for a desktop operating system product separately from the underlying desktop operating system license or from the computer system on which the product is first installed. 11. Term, termination and renewal. a. Term. This agreement will remain in effect unless it is terminated by either party as described below. Each enrollment will have the term provided in that enrollment. b. Termination of this agreement Either party may terminate this agreement for any reason upon 60 days written notice. Effect of termination. Such termination will merely terminate either party's and its affiliates' ability to enter into new enrollments under this agreement. Such termination will not affect any enrollment not otherwise terminated, and any terms of this agreement applicable to any enrollment not otherwise terminated will continue in effect with respect to that enrollment. SLG Microsoft Enterprise Agreement v6.1 Terms and Conditions Page 10 of 15 (StandaloneXindirect) (North America) March 1, 2003 e. Termination of an enrollment - general. Either party to an enrollment may terminate it if the other party materially breaches its obligations under this agreement, including any obligation to submit orders or pay amounts owed (even if such non-payment is caused by non-appropriation of funds). Except where the breach is by its nature not curable within 30 days, the terminating party must give the other party 30 days notice and opportunity to cure. If we give such notice to an enrolled affiliate, we will give you a copy of that notice as well and you agree to assist in attempting to resolve the problem. If the problem also affects other enrollments and cannot be resolved between you and.us within a reasonable period of time, we may also terminate this agreement and all other enrollments under it, unless the basis for termination of the enrollment is non-appropriation of funds to the enrolled affiliate, in which event we may only terminate the affected enrollments). If an enrolled affiliate ceases to be your affiliate, you must promptly notify us of this fact, and we may terminate its enrollment d. Termination of enrollment - non-appropriation of funds. An enrolled affiliate may terminate an enrollment without liability, penalty or further obligation to make payments if funds to make payments under the enrollment are not appropriated or allocated for such purpose, subject to Section 11 (e), below (Effect of expiration or termination). e. Effect of termination or expiration. Upon expiration or termination of any enrollment, the enrolled affiliate must order licenses for all copies of products it or its affiliates have run under its enrollment for which the enrolled affiliate has not previously submitted an order. Except as provided in the next paragraph, in the event of termination, all unpaid installments of the purchase price for any licenses will immediately become due and payable, and the enrolled affiliate will be entitled to perpetual licenses only after all such payments have been made. If (i) an enrolled affiliate terminates its enrollment as a result of our breach, (ii) we terminate an enrolled affiliate's enrollment because it has ceased to be your affiliate, or (iii) you terminate an enrollment for non-appropriation of funds, or (iv) we terminate an enrollment for non-payment due to non-appropriation of funds, then the enrolled affiliate will have the following options: It may immediately pay the total remaining amount due, including all installments, in which case the enrolled affiliate will have perpetual licenses for all copies of the products it has ordered. As an alternative, it may pay only amounts due and payable as of the termination date, in which case the enrolled affiliate will have perpetual licenses for (!) all copies of all products for which payment has been made in full, and (it) the number of copies of products for which payment has been made in installments that is proportional to the amount that has been paid as of the termination date. e. How to renew an enrollment. We will provide each enrolled affiliate with 60 days prior written notice of expiration of its enrollment or renewal term advising it of its renewal options. An enrolled affiliate may have the option to renew its enrollment for successive terms of 12 or 36 full calendar months. We and our affiliates will not unreasonably reject any renewal order. However, we may make a change to the Enterprise Agreement program that will make it necessary for you and your enrolled affiliates to enter into new agreements and enrollments. Placing renewal orders. To renew, the enrolled affiliate must submit a renewal order within 30 days after the previous term expired. The renewal order must be for Software Assurance for (i) all enterprise products previously ordered for all qualified desktops in the enrolled affiliate's enterprise as of the date of that renewal order, and (ii) all copies of additional products for which the enrolled affiliate elects to renew Software Assurance. Each renewal term will start the day following expiration of the prior term. An enrolled affiliate may not add new enterprise products not previously ordered during the initial term as part of its renewal; to license new enterprise products it must submit a new enrollment. Consequences of non-renewal. If the enrolled affiliate elects not to renew its enrollment or Software Assurance for any additional product under its enrollment, and it otherwise allows Software Assurance for any copies of any products licensed under its enrollment to lapse, then SLG Microsoft Enterprise Agreement v6.1 Terms and Conditions Page 11 of 15 (StandaloneXIndirect) (North America) March 1,2003 the enrolled affiliate will not be permitted to order Software Assurance for such copies later without first acquiring L&SA. 12. Restrictions on use. An enrolled affiliate may not: • Separate the components of a product made up of multiple components (in the case of product suites, such as Office) by running them on different computers, by upgrading or downgrading them at different times, or by transferring them separately, except as otherwise provided in the product use rights; • Rent, lease, lend or host products, except where we agree by separate agreement; • Reverse engineer, de-compile or disassemble products, except to the extent expressly permitted by applicable law despite this limitation; or • Transfer licenses to, or sublicense, products to the U.S. Government. Products licensed under this agreement are subject to U.S. export jurisdiction. You agree to comply with all applicable international and national laws that apply to these products, including the U.S. Export Administration Regulations, as well as end-user, end-use and destination restrictions issued by U.S. and other governments. For additional information, see http://www.micfosoft.com/exDortinQ. 13. Confidentiality. Subject to the requirements of your public records law, if any, the terms and conditions of this agreement are confidential. Neither you nor we will disclose such terms and conditions, or the substance of any discussions that led to them, to any third party other than your or our affiliates or agents, or to your designated or prospective resellers who: (a) have a need to know such information to assist in carrying out this agreement; and (b) have been instructed by you or us that all such information is to be handled in strict confidence. 14. Warranties. a. Limited product warranty. We warrant that each version of a product will perform substantially in accordance with our user documentation. This warranty is valid for a period of one year from the date an enrolled affiliate first runs a copy of the version. To the maximum extent permitted by law, any warranties Imposed by law concerning the products are limited to the same extent and the same one-year period. This warranty does not apply to components of products that an enrolled affiliate is permitted to redistribute under applicable product use rights, or if failure of the product has resulted from accident, abuse or misappDcation. if you notify us within the warranty period that a product does not meet this warranty, then we will, at our option, either (i) return the price paid for the product or (ii) repair or replace the product. To the maximum extent permitted by law, this is your exclusive remedy for any failure of any product to function as described in this subsection. b. NO OTHER WARRANTIES. TO THE EXTENT PERMITTED BY APPLICABLE LAW, WE DISCLAIM AND EXCLUDE ALL REPRESENTATIONS. WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED OR STATUTORY, OTHER THAN THOSE IDENTIFIED EXPRESSLY IN THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO WARRANTIES OR CONDITIONS OF TITLE, NON-INFRINGEMENT, SATISFACTORY QUALITY, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITH RESPECT TO THE PRODUCTS OR RELATED MATERIALS. WE WILL NOT BE LIABLE FOR ANY SERVICES OR PRODUCTS PROVIDED BY THIRD PARTY VENDORS, DEVELOPERS OR CONSULTANTS IDENTIFIED OR REFERRED TO YOU BY US UNLESS SUCH THIRD-PARTY PRODUCTS OR SERVICES ARE PROVIDED UNDER WRITTEN AGREEMENT BETWEEN SLG Microsoft Enterprise Agreement v6.1 Terms and Conditions Page 12 of 15 (StandaloneXindirect) (North America) March 1,2003 YOU AND US, AND THEN ONLY TO THE EXTENT EXPRESSLY PROVIDED IN SUCH AGREEMENT. 15. Defense of /nflr/ngemenf and misappropriation claims. We will defend you against any claim made by an unaffiliated third party that any product or fix infringes its patent, copyright, or trademark or misappropriates its trade secret, and will pay the amount of any resulting adverse final judgment (or settlement to which we consent). You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance in defending the claim, and we will reimburse you for reasonable out of pocket expenses that you incur in providing that assistance. The terms "misappropriation" and "trade secret" are used as defined in the Uniform Trade Secrets Act. Our obligations will not apply to the extent that the daim or adverse final judgment is based on (i) your running of the product or fix after we notify you to discontinue running due to such a claim; (ii) your combining the product or fix with a non-Microsoft product, data or business process; (iii) damages attributable to the value of the use of a non-Microsoft product, data or business process; (iv) your altering the product or fix; (v) your distribution of the product or fix to, or its use for the benefit of, any third party; (vi) your use of our trademark(s) without express written consent to do so; or (vii) for any trade secret claim, your acquiring a trade secret (a) through improper means; (b) under circumstances giving rise to a duty to maintain its secrecy or limit its use; or (c) from a person (other than us or our affiliates} who owed to the party asserting the claim a duty to maintain the secrecy or limit the use of the trade secret. . You will be responsible for any costs or damages that result from these actions. If we receive information concerning an infringement claim related to a product or fix, we may, at our expense and without obligation to do so, either (i) procure for you the right to continue to run the allegedly infringing product or fix, or (ii) modify the product or fix or replace it with a functional equivalent, to make it non-infringing, in which case you will stop running the allegedly infringing product or fix immediately. If, as a result of an infringement daim, your use of a product or fix is enjoined by a court of competent jurisdiction, we will, at our option, either procure the right to continue its use, replace it with a functional equivalent, modify it to make it non-infringing, or refund the amount paid and terminate the license for the infringing product or fix.. If any other type of third party claim is brought against you regarding our intellectual property, you must notify us promptly in writing. We may, at our option, choose to treat these claims as being covered by this section. This Section 15 provides your exclusive remedy for third party infringement and trade secret misappropriation claims. 16. Limitation of liability. a. Limitation. There may be situations in which you or an enrolled affiliate have a right to claim damages or payment from us. Except as otherwise specifically provided in this subsection, whatever the legal basis for the claims, our liability will be limited, to the maximum extent permitted by applicable law, to direct damages up to the amount you or the enrolled affiliate have paid for the product giving rise to the claims. In the case of free product or code you or an enrolled affiliate are authorized to redistribute to third parties without separate payment to Microsoft, our total liability to you or the enrolled affiliate will not exceed US$5000. The limitations contained in this subsection will not apply with respect to the following in connection with the performance of this agreement: (i) our obligations under Section 15 to defend third party claims of patent, copyright or trademark infringement or trade secret misappropriation, and to pay damages resulting from any final adjudication (or settlement to which we consent) of such claims; SLG Microsoft Enterprise Agreement v6.1 Terms end Conditions Page 13 of 15 (StandaloneXindirect) (North America) March 1,2003 (ii) our liability for damages for gross negligence or willful misconduct, to the extent caused by us or our agent and awarded by a court of final adjudication; and (iii) our obligations under section 13 (confidentiality). b. No liability for certain damages. To the maximum extent permitted by applicable law, neither party nor any of its affiliates or suppliers will be liable for any indirect damages (including, without limitation, consequential, special or incidental damages, damages for loss of profits or revenues, business interruption, or loss of business information) arising in connection with any agreement, product, fix or service, even if advised of the possibility of such damages or if such possibility was reasonably foreseeable. This exclusion of liability does not apply to either party's liability to the other for violation of its confidentiality obligation or of the other party's intellectual property rights. c. Application. Except as specified expressly in this Section 16, the limitations on and exclusions of liability for damages in this agreement apply regardless of whether the liability is based on breach of contract, tort (including negligence), strict liability, breach of warranties, or any other legal theory. 17. Verifying Compliance. You must keep records relating to the products you and any affiliate run. We have the right to verify compliance, at our expense, during the term of this agreement and for a period of one year thereafter. To do so, we will engage an independent accountant from a nationally recognized public accounting firm, which will be subject to a confidentiality obligation. Verification will take place upon not fewer than 30 days notice, during normal business hours and in a manner that does not interfere unreasonably with your operations. As an alternative, we may require you to accurately complete our self-audit questionnaire relating to the products you and any affiliates use. You will have the right to conduct a self- audit prior to any third-party audit if (a) the governor of your state has issued an executive order (or state legislation exists) requiring software licensing compliance statewide and for state-funded agencies (including local governments), and (b) your state has adopted and implemented a statewide licensing compliance software asset management program reasonably acceptable to Microsoft. If verification or self-audit reveals unlicensed use of products, you must promptly order sufficient licenses to permit all product usage disclosed. If material unlicensed use is found (license shortage of 5% or more), you must reimburse us for the costs we have incurred in verification and acquire the necessary additional licenses as single retail licenses within 30 days. If we undertake such verification and do not find material unlicensed use of products, we will not undertake another verification of the same entity for at least one year. We and our auditors will use the information obtained in compliance verification only to enforce our rights and to determine whether you are in compliance with the terms of this agreement. By invoking the rights and procedures described above, we do not waive our rights to enforce this agreement or to protect our intellectual property by any other means permitted by law. 18. Miscellaneous. a. Notices. All notices, authorizations, and requests given or made in connection with this agreement must be sent by post, express courier, facsimile, or email to the addresses and numbers indicated in the applicable cover page to this agreement Notices will be deemed delivered on the date shown on the postal return receipt or on the courier, facsimile or email confirmation of delivery. b. Assignment This agreement may be assigned by either party only to an affiliate, but assignment will not relieve the assigning party of its obligations under the assigned agreement. If either party assigns this agreement or any enrollment, it must notify the other party of the assignment in writing. SLG Microsoft Enterprise Agreement v6.1 Terms and Conditions Page 14 of 15 (Slandalone)(indlrect) (North America) March 1, 2003 C. Severability. If a court holds any provision of this agreement to be illegal, invalid or unenforceable, the remaining provisions will remain in full force and effect and the parties will amend this agreement to give effect to the stricken clause to the maximum extent possible. d. Waiver. No waiver of any breach of this agreement shall be a waiver of any other breach, and no waiver shall be effective unless made in writing and signed by an authorized representative of the waiving party. e. Force Majeure. To the extent that either party's performance is prevented or delayed, either totally or in part, for reasons beyond that party's control, then that party will not be liable, so long as it resumes performance as soon as practicable after the reason preventing or delaying performance no longer exists. f. Non-exclusivity. This agreement and all enrollments under it are non-exclusive. Nothing contained in this agreement or any such enrollment requires you to license, use or promote Microsoft software or services exclusively. You may, if you choose, enter into agreements with other parties to license, use or promote non-Microsoft software or services g. Entire agreement The documents identified on the cover page to this agreement constitute the entire agreement concerning the subject matter and supersede any prior or contemporaneous communications. In the case of a conflict between any of these documents that is not resolved expressly in the documents, their terms will control in the following order (i) these terms and conditions and the accompanying cover page; (ii) the Product List; (iii) the product use rights; and (iv) all enrollments under this agreement. The terms of any purchase order or any general terms and conditions you or your affiliates maintain, other than those mandatory terms required by statute or regulation, do not apply. This agreement (except the product use rights and the Product List) can be changed only by an amendment signed by both parties. h. Survival. Provisions regarding product use rights, restrictions on use, evidence of perpetual licenses, transfer of licenses, warranties, limitations of liability, confidentiality, compliance verification and obligations on termination or expiration will survive termination or expiration of this agreement or any enrollment. i. Independent contractors. Resellers are independent contractors who act in their own name and for their own account; they have no authority to bind or impose any obligation or liability upon us. j. Applicable law; Dispute resolution. The terms of this agreement will be governed by the laws of your state, without giving effect to its conflict of laws. Disputes relating to this agreement will be subject to applicable dispute resolution laws of your state. k. Copyright Violation. Except to the extent you are licensed under this agreement, you will be responsible for your violation of our copyright in the products, including payment of license fees specified in this agreement for unlicensed use. SLG Microsoft Enterprise Agreement v6.1 Terms and Conditions Page 15 of 15 (StandabneXindirect) (North America) March 1, 2003 Microsoft I Volume Licensing Enterprise Amendment Cover Page Agreement number Software advisor or Microsoft offiliate to complete Enrollment number Software advisor or Microsoft affiliate to complete 01E62044 Amendment ID X01-OOO-smangum-S-781 ID Number Microsoft to complete This amendment cover page sets out the amendments to the agreement and/or enrollment identified above. The attached terms will only have effect for the purposes of the agreement and/or enrollment identified above. This amendment cover page and all attached amendments identified are entered into between the customer and Microsoft affiliate signing, as of the effective date identified below. All terms used but not defined will have the same meanings as in the Microsoft agreement and/or enrollment identified above. Amendment ID B89-000- smangum-S- 781 Amendment Description Unexpired Select SA Migration End of List of Amendments End of List of Amendments End of List of Amendments End of List of Amendments End of List of Amendments End of List of Amendments End of List of Amendments End of List of Amendments Contract Enrollment Except for changes made by the amendments identified in this cover page, all terms of this agreement and/or enrollment remain unchanged. By signing below, the parties agree to be bound by the terms of this amendment cover page and the attached amendments. Customer Contracting Microsoft Affiliate Microsoft Licensing, GP Signature Printed Name CLAUDE A. LEWIS Printed Title * MAYOR Printed Title Signature Date * October 16, 2007 Signature Date (date Microsoft affiliate countersigns) * indicates required field Effective Date (may be different than our signature date) Microsoft Volume Licensing Programs (North America)(English) October 1,2006 Amendment Cover Page X01 Page 1 of 2 After this cover page is signed, send it, along with alt amendments listed, to your software advisor or reseller. Your advisor or reseller must submit them to the following address. When the amendment cover page and attached amendments are fully executed, you will receive a confirming copy. Microsoft Licensing, GP Dept. 551, Volume Licensing 6100 Neil Road, Suite 210 Reno, Nevada USA 89511-1137 Prepared By: Scott Mangum (LS) Microsoft Volume Licensing Programs Amendment Cover Page (North America)(English) October 1,2006 X01 Page 2 of z 3 Microsoft Volume Licensing Enterprise Enrollment (indirect) State and Local Enterprise Agreement number Reseller or Microsoft affiliate to complete Enrollment number Microsoft affiliate to complete Reseller purchase order number Reseller to complete Previous enrollment number (if renewing Software Assurance*) Reseller to complete Earliest expiring previous enrollment end date Reseller to complete If consolidating from multiple previous enrollments with Software Assurance, complete the multiple previous enrollment form. Enterprise products can only be renewed from a qualifying enrollment. Additional products can be renewed from any previous enrollment with Software Assurance This Microsoft Enterprise Enrollment is entered into between the following entities signing, as of the effective date identified below. Definitions. When used in this enrollment, "you" refers to the entity that signs this enrollment with us, and "we" or "us" refers to the Microsoft entity that signs this enrollment. "qualifying enrollment," means (i) an enterprise enrollment under a Microsoft Enterprise Agreement; (ii) any enterprise subscription enrollment entered into under a separate Microsoft Enterprise Subscription Agreement; or (iii) any other enrollment submitted under the Microsoft Enterprise Agreement identified on the cover page. All other definitions in the Microsoft Enterprise Agreement identified above apply here. Effective date. If you are renewing Software Assurance from one or more previous "qualifying enrollments" then the effective date will be the day after the first Enrollment expires. Otherwise the effective date will be the date this enrollment is signed by us. Where a previous qualifying enrollment is being used, your reseller will require that enrollment number and end date to complete the applicable boxes above. Term. This enrollment will expire 36 full calendar months from the effective date. It could be terminated earlier or renewed as provided in the Microsoft Enterprise Agreement. We will advise you of your renewal options before it expires. Representations and warranties. By signing this enrollment, the parties agree to be bound by the terms of this enrollment, and you represent and warrant that: (i) you have read and understand the Microsoft Business Agreement identified above (if any) and the Microsoft Enterprise Agreement, including all documents it incorporates by reference and any amendments to those documents, and agree to be bound by those terms; and (ii) you are either the entity that signed the Microsoft Enterprise Agreement or its affiliate. Non-exclusivity. This enrollment is non-exclusive. Nothing contained in it requires you to license, use or promote Microsoft software or services exclusively. You may, if you choose, enter into agreements with other parties to license, use or promote non-Microsoft software or services. SLG Microsoft Enterprise 6.5 Enrollment (lndirect)(North America) October 1, 2005 Cover page Page 1 of 9 Product order. Your reseller will provide you with your product pricing and order. Your prices and billing terms for all products ordered will be determined by agreement between you and your reseller. Your reseller will provide us with your order separately from this enrollment. Do you require media? D No. D Yes. If yes, attach media form.No. This enrollment consists of (1) this document, and (2) the required attachments (as indicated below). Attachments: Required if applicable n Media Order Form Enterprise Desktop Terms and Conditions D Supplemental Contact Information Form Multiple Previous Enrollment Form Customer Name ofwitit / X9 Contracting Microsoft Affiliate Microsoft Licensing, GP Signature CLAUDE A. LEWIS Printed name Printed title * MAYOR, CITY OF CARLSBAD Printed title Signature date * October 16, 2007 Signature date (date Microsoft affiliate countersigns) * indicates required fields Effective date (may be different than our signature date) Microsoft Volume Licensing web sites (Note We wiil ad;ise /cu of any changes io these URLs Product use rights Product List Microsoft Volume Licensing Services (MVLS) (password protected site to view orders under this enrollment) Customer guide http://microsoft.com/licensina/contracts htto ://m icrosoft. com/I icensi nq/contracts https://licensinq. microsoft.com/ httD://microsoft.com/licensinq/proqrams/ Notices to Microsoft should be sent to: MSLI, GP 6100 Neil Road, Suite 210 Reno, Nevada USA 89511-1137 Dept. 551, Volume Licensing SLG Microsoft Enterprise 6.5 Enrollment (lndirect)(North America) October 1, 2005 Cover page Page 2 of 9 Customer. Please remit to your reseller. Reseller. Please remit to Microsoft. SLG Microsoft EA Enrollment (indirect) v6.3 Cover Page Page 3 of 9 (North America) August 1, 2005 1. Contact information. Each party will notify the other in writing if any of the information in the following contact information section changes. The asterisks (*) indicate required fields. By providing contact information, you consent to its use for purposes of administering this enrollment by us, our affiliates, and other parties that help us administer this enrollment. The personal information you provide in connection with this enrollment will be used and protected in accordance with the privacy statement available at http://licensing.microsoft.com. Primary contact information: The customer signing on the cover page must identify an individual from inside its organization to serve as the primary contact. This contact is the default administrator for this enrollment and receives all notices unless you provide us written notice of a change. The administrator may appoint others as administrators and grant others access to online information. Name of entity * Same as entity name on the cover page Contact name * Last Peterson First Gordon Street address * 1635 Faraday Ave. Contact email address (required for online access) * g pete@ci. carlsbad. ca. us City* Carlsbad State/Province' CA Phone 760-602-2454 Country * USA Postal code * 92008 Fax 760-602-8555 Notices and online access contact information: This will designate a notices and online access contact different than the primary contact. This contact will replace the default administrator for this enrollment and receive all notices. This contact may appoint other administrators and grant others access to online information. Notices and online access contact X Same as primary contact Name of entity* Street address* City* Country* State/Province* Postal code* D This contact is a third party (not the customer) Contact name * Last First Contact email address (required for online access)* Phone* Fax Warning: This contact receives personally identifiable information of the customer. SLG Microsoft Enterprise 6.5 Enrollment (lndirect)(North America) October 1, 2005 Enterprise order information Page 4 of 9 Language preference: This section designates the language in which you prefer to receive notices. English Microsoft account manager: This section designates your Microsoft account manager contact. Microsoft account manager name Debra Jacobson Microsoft account manager email address debraj@microsoft.com If you require a separate contact for any of the following, please check the box and attach the Supplemental Contact Information form. Otherwise, the notices contact remains the default. Duplicate Electronic Contractual Notices contact Software Assurance Benefits contact MSDN contact Online Services contact 2. Defining your enterprise. Use this section to identify which affiliates will be included in your enterprise. Your enterprise must consist of entire government agencies, departments or legal jurisdictions, not partial government agencies, departments, or legal jurisdictions. Each affiliate must be entirely "in" or entirely "out." All affiliates acquired after the effective date of this enrollment that are not party to a qualifying enrollment of their own will automatically be included unless you fill in part b below. a. Use this part (a) to determine which current affiliates will be included in your enterprise. Check only one of the boxes in part (a). You and all affiliates will be participating D You and the following affiliates will be participating (if no affiliates will be participating, write "none" on line 1) (attach a list of names on a separate piece of paper if more than 5 affiliates are being included): D You and all affiliates, except the following affiliates, will be participating (attach a list of names on a separate piece of paper if more than 5 affiliates are being excluded): SLG Microsoft Enterprise 6.5 Enrollment (lndirect)(North America) October 1, 2005 Enterprise order information Page 5 of 9 b. Use this part (b) to indicate whether affiliates acquired after the enrollment effective date will be included. Unless you check the box below, all affiliates acquired after the enrollment effective date that are not party to a qualifying enrollment of their own will automatically be included. D Exclude all affiliates acquired after the enrollment effective date that are not party to a qualifying enrollment of their own. 3. Selecting your language option. Select the option for the languages in which you will run the products licensed under this enrollment. The options are identified below and their corresponding languages are identified at http://microsoft.com/licensing/contracts. Check one box IXI Listed Languages I | All Languages 4. Language allocation. Provide us with your good faith estimate of the specific languages in which you will run all copies of all products and the approximate percentage of those copies you will run in each language. Information that you provide here does not limit your future use of products under this enrollment in any permitted language within the language group you select above. Attach a separate sheet if more space is needed. Language Percentages English 100% 5. Applicable currency. Payments made in connection with this enrollment must be in U.S. Dollars 6. Establishing your price level. The price level indicated in this section will be your price level for the initial enrollment term for all enterprise products you order and for any additional products in the same pool(s). Your price level for any other additional products will be level "A". SLG Microsoft Enterprise 6.5 Enrollment (lndirect)(North America) October 1, 2005 Enterprise order information Page 6 of 9 Qualified desktops: You represent that the total number of qualified desktops in your enterprise is, or will be increased to, this number during the initial term of this enrollment (This number must be equal to at least 250 desktops). Qualified users: You represent that the total number of qualified users in your enterprise is, or will be increased to, this number during the initial term of this enrollment (This number must be equal to at least 250 users). 800 Number of desktops/ users 250 to 2,399 2,400 to 5,999 6,000 to 14,999 15,000 and above Price level A B C D Price level (for pools in which you order an enterprise product): Qualified desktop Qualified user D Price level (for pools in which you do not order an enterprise product):Price level "A" 7. Enterprise product orders. You must select a desktop platform or any individual enterprise product before you can order additional products. You may choose to split your Office product selection between "professional plus" and "enterprise" editions within your enterprise. Your CAL selection must be the same across your enterprise. The components of the current versions of any enterprise product are identified in the Product List. Is your Enterprise Agreement version 6.4 or earlier? D No. E*Q Yes. If yes, you will also need to attach the Enterprise Desktop Terms and Conditions. Unless stated/indicated otherwise, we will invoice your reseller in 3 equal annual installments. The first installment will be invoiced upon our acceptance of this enrollment and thereafter on the anniversary of the enrollment. All subsequent new additional products and true-ups are billed in full. Platform Product Selection (Select one) Professional Desktop Enterprise Desktop Custom Desktop ° Windows Desktop Operating System Upgrade Office Professional Plus Core CAL <Select> D Windows Desktop Operating System Upgrade Office Enterprise Enterprise CAL <Select> B Windows Desktop Operating System Upgrade Office Professional Plus Enterprise CAL Desktop Individual Enterprise Product Component Selection Windows Desktop Operating System Upgrade <Select One or Both> <Select><Select> SLG Microsoft Enterprise 6.5 Enrollment (lndirect)(North America) October 1, 2005 Enterprise order information Page 7 of 9 8. Qualifying systems licenses. All desktop operating system licenses provided under this program are upgrade Licenses. No full operating system licenses are available under this program. Therefore, if you select the Desktop Platform or the Windows Desktop Operating System Upgrade & Software Assurance, all qualified desktops on which you will run the Windows Desktop Operating System Upgrade must be licensed to run one of the qualifying operating systems identified in the Product List at http://microsoft.com/licensinq. Note that the list of operating systems that qualify for the Windows Desktop Operating System Upgrade varies with the circumstances of your order. That list is more extensive at the time of your initial order than it is for some subsequent true ups and system refreshes during the term of your enrollment. For example, Windows XP Home Edition or successor products are not qualifying Operating Systems. SLG Microsoft Enterprise 6.5 Enrollment Enterprise order information Page 8 of 9 (lndirect)(North America) October 1, 2005 General information Reseller company name:* CompuCom Systems Street address: (PO boxes will not be accepted)* 7171 Forest Lane City and State / Province and postal code:* Dallas, TX 75230 Country:* USA Contact name:* Greg Landry Phone number:* 972-856-5520 Fax number: 972-856-1110 Email address:* g la ndry@com pucom. com The undersigned confirms that the reseller information is correct. Name of reseller* Signature* Printed name* Printed title* Date* SLG Microsoft Enterprise 6.5 Enrollment (lndirect)(North America) October 1, 2005 Reseller information form Page 9 of 9 CompuCom - software quote Quoted bv Sam Andrews, CorrmuCom 3320 Data Drive, Suite 100 Rancho Cordova, CA 95670 Phone 818-988-2195 sam.andrews(S>comDucom.com Quantity 732 68 795 5 800 1 48 4 7 40 1 22 1 1 10 4 1 1 30 40 6 7.75 Please fax your POs to Client Assistance Center at 800-366-9994. You may call 800-400-9852, option 2, to check status on orders. Quoted to: Date 10/9/07 City of Carlsbad Gordon Peterson qpete(S)ci. carlsbad. ca. us YEAR 1 PRICING Important: Please provide the email address of the recipient designated to receive a CompuCom "order confirmation" Part# 269-12441 269-12444 66J-00579 66J-00582 76A-00009 H04-00321 P73-00202 P72-00164 359-00852 359-00851 228-04435 P73-00225 312-02356 B21 -00382 228-03150 R39-00397 UCQ-00105 392-02065 076-02036 D87-01251 F1P-00206 Product-total Sub-Total Tax Shipping Total Description enterprise products Office Professional Plus Lic/SA Platform Office Professional Plus SA Platform (from Select* 8684727) Windows Vista Business w/ Vista Enterprise Upg/SA Platform Windows Vista Business w/ Vista Enterprise Platform SA (8684727) Enterprise CAL Lic/SA Platform Device CAL w/Svcs '>*g5;w» ; additional products Office Sharepoint Server Lic/SA Windows Server Standard Lic/SA Windows Server Enterprise Lic/SA SQL Device CAL SA (from Select* 6775976) SQL Device CAL Lic/SA SQL Server Standard Edtn Win32 SA (6775976) Windows Server Standard SA (6775976) Exchange Server Standard Lic/SA MapPoint SA (from Select* 8684727) SQL Server Standard Edtn Win32 1-Proc SA (8684727) Windows Server ExtrnConn SA (8684727) Expression Web Lic/SA Office Sharepoint Designer Lic/SA Project Win32 Lic/SA Visio Professional Lic/SA Visual Studio Pro w/ MSDN Premium Lic/SA You may elect a "no-media" enrollment and eliminate sales tax YourYear-1 Microsoft EA Payment (see tabs at bottom for year 2 &3 pricing) Unit Price $ 125.78 $ 61.40 $ 38.79 $ 24.12 $ 97.17 $ 1,522.55 $ 247.29 $ 803.35 $ 19.84 $ 55.72 $ 108.80 $ 88.35 $ 240.45 $ 33.71 $ 705.18 $ 245.72 $ 86.92 $ 68.80 $ 177.00 $ 166.57 $ 713.00 Prices good for 30 days Ext. Price $ $ 92,070.96 $ 4,175.20 $ 30,838.05 $ 120.60 $ 77,736.00 $ $ .. ....- $ 1,522.55 $ 11,869.92 $ 3,213.40 $ 138.88 $ 2,228.80 $ 108.80 $ 1,943.70 $ 240.45 $ 33.71 $ 7,051.80 $ 982.88 $ 86.92 $ 68.80 $ 5,310.00 $ 6,662.80 $ 4,278.00 $ $ $ 250,682.22 $ 250,682.22 $ 19,427.87 No Charge $270,110.09 CompuCom - software quote Quoted bv Sam Andrews, ComDuCom 3320 Data Drive, Suite 100 Rancho Cordova, CA 95670 Phone 818-988-2195 sam.andrews(S>comDucom.com I Quantity 732 68 795 5 800 1 48 4 7 40 1 22 1 1 10 4 1 1 30 40 6 7.75 I P/ease fax your POs to Client Assistance Center at 800-366-9994. You may call 800-400-9852, option 2, to check status on orders. Quoted to: Date 10/9/07 City of Carlsbad Gordon Peterson qpeteO.ci. carlsbad. ca. us YEAR 2 and YEAR 3 PRICING Important: Please provide the email address of the recipient designated to receive a CompuCom "order confirmation" Part# 269-12441 269-12444 66J-00579 66J-00582 76A-00009 H04-00321 P73-00202 P72-00164 359-00852 359-00851 228-04435 P73-00225 312-02356 B21 -00382 228-03150 R39-00397 UCQ-00105 392-02065 076-02036 D87-01251 F1P-00206 Product-total Sub-Total Tax Shipping Total Description enterprise products Office Professional Plus Lic/SA Platform Office Professional Plus SA Platform (from Select* 8684727) Windows Vista Business w/ Vista Enterprise Upg/SA Platform Windows Vista Business w/ Vista Enterprise Platform SA (8684727) Enterprise CAL Lic/SA Platform Device CAL w/Svcs additional products Office Sharepoint Server Lic/SA Windows Server Standard Lic/SA Windows Server Enterprise Lic/SA SQL Device CAL SA (from Select* 6775976) SQL Device CAL Lic/SA SQL Server Standard Edtn Win32 SA Windows Server Standard SA (6775976) Exchange Server Standard Lic/SA MapPoint SA (from Select* 8684727) SQL Server Standard Edtn Win32 1-Proc SA (8684727) Windows Server ExtrnConn SA (8684727) Expression Web Lic/SA Office Sharepoint Designer Lic/SA Project Win32 Lic/SA Visio Professional Lic/SA Visual Studio Pro w/ MSDN Premium Lic/SA You may elect a "no-media" enrollment and eliminate sales tax Your Year 2 / Year 3 Annual Amounts Unit Price $ 125.78 $ 73.09 $ 38.79 $ 28.71 $ 97.17 $ 1,522.55 $ 247.29 $ 803.35 $ 23.79 $ 55.72 $ 130.55 $ 106.00 $ 240.45 $ 40.45 $ 846.21 $ 294.86 $ 86.92 $ 68.80 $ 177.00 $ 166.57 $ 713.00 Prices good for 30 days Ext. Price $ * $ 92,070.96 $ 4,970.12 $ 30,838.05 $ 143.55 $ 77,736.00 $ $ $ 1,522.55 $ 11,869.92 $ 3,213.40 $ 166.53 $ 2,228.80 $ 130.55 $ 2,332.00 $ 240.45 $ 40.45 $ 8,462.10 $ 1,179.44 $ 86.92 $ 68.80 $ 5,310.00 $ 6,662.80 $ 4,278.00 $ $253,551.39 $253,551.39 $ 19,650.23 No Charge $273,201.62 October 4, 2007 Gordon Peterson Information Technology Manager City of Carlsbad 1635 Faraday Ave Carlsbad, CA 92008 Re: Exchange 2007 Assessment and Architectural Design Services Microsoft Corporation recommends that City of Carlsbad obtain assessment and architectural design consulting services to demonstrate and enhance the benefits of Microsoft products in its environment. Therefore, if you execute this letter agreement on or before October 24th you may obtain such services, at no charge to you, from Microsoft or a Microsoft certified partner in an amount not to exceed $10,500. If you elect to purchase services from a partner, we will reimburse the partner directly for the services upon presentation by you of a partner invoice for such services. If you elect to obtain the services from Microsoft, (a) such service will be provided in accordance with the terms of a Microsoft Services Agreement and work order between you and Microsoft; and (b) the value of our gratuitous services provided will be based on our then-current standard fees for such services. All consulting services obtained by you under this section, whether from Microsoft or a Microsoft partner, must be fully rendered on or before December 14th, 2007. Microsoft waives any and all entitlement to compensation from City of Carlsbad for the services provided to you pursuant to this letter agreement. Microsoft intends that these services and associated terms be in compliance with applicable laws and regulations with respect to gratuitous services. It is specifically understood that all services and services deliverables provided are for the sole benefit and use of your City and are not provided to or for any individual government employee. If the terms of this letter agreement are acceptable to you, please sign in the space provided below and return to me. This letter agreement is not valid until accepted and executed by Microsoft below. Sincerely, Debra Jacobson Microsoft Corporation By: ACCEirED AND AGREED Title: Date: October 16, 2007 Date: