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Services Framework Agreement- 7//0 SERVICES FRAMEWORK AGREEMENT This Agreement is made and effective as of this/14 r `day of 60471/401--2008, by and between: PARKEON INC., a corporation organized and existing under the laws of the State of Delaware, and having its office at 40 Twosome Drive, Unit 7, Moorestown, NJ, 08057, (hereinafter referred to as "PARKEON"), AND City of Miami Beach, a municipal corporation existing and organized under the laws of Florida with its office at 1700 Convention Center Drive, Miami Beach, Florida, 33139 (hereinafter referred to as "the Customer"), RECITALS: The Customer has bought and/or uses 253 PARKEON DG and 153 PARKEON Strada BNA pay and display machines. The Customer wishes to benefit from certain services provided by PARKEON relating to the use of said 253 PARKEON DG and 153 PARKEON Strada BNA pay and display machines. NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: ARTICLE 1 - SUBJECT MATTER The Customer requires PARKEON, which accepts, to perform the following services (hereinafter, the services referenced in the applicable Appendices below shall be collectively referred to as the "Services"): SERVICE Applicable in Terms and this conditions Detailed Agreement in Following Appendix Technical Support Services Yes Parkfolio and On -Line Credit Card Processing I Yes Maintenance No Extended Hardware Warranty Yes Appendix 1 Appendix 2 Appendix 3 Appendix 4 In the event of discrepancy or conflict between the general terms and conditions of this Agreement and the Appendices referenced above, the Appendices shall prevail. 1 ARTICLE 2 — GENERAL OBLIGATIONS OF PARKEON PARKEON shall perform the Services in accordance with the requirements of this Agreement and with the level of care and diligence required in its profession. Service levels are further provided for in the Appendices. Subject to Article 3 below, PARKEON shall provide all labor, the supervision thereof, and all equipment required for its execution of the services. ARTICLE 3 — GENERAL OBLIGATIONS OF CUSTOMER In order to enable PARKEON to render the Services referred to in this Agreement, the Customer agrees to: - Give to PARKEON, in writing, details of the location of the pay and display machines - Provide PARKEON with reasonable access to the pay and display machines - Provide an operating environment for the pay and display machines, reasonably consistent with what is as specified by the manufacturer of the pay and display machines, and operate the pay and display machines in accordance with the manufacturer's recommendations ARTICLE 4 — PRICE, PAYMENT AND PAYMENT TERMS In consideration of the Services to be provided by PARKEON under this Agreement, Customer agrees to pay PARKEON in accordance with the payment terms set forth in this Article 4 including, without limitation, the chart below: The prices are inclusive of import duty, where applicable, but exclusive of any existing or future sales, use, excise, gross receipts, value added or other taxes imposed by any applicable federal, state or local governmental authority. Such taxes, when applicable, shall be added to the invoice and shall be paid by Customer, unless Customer provides PARKEON with the proper tax exemption certificates. The prices shall be invoiced as specified in the chart below. If Customer disagrees with the content of an invoice, it shall notify PARKEON in writing within thirty (30) Business days of receipt of the invoice; otherwise the invoice shall be considered accepted. The invoices shall be paid by check or wire transfer (to a bank account to be designated by PARKEON), within thirty (30) Business days from the date of the invoices (unless Customer notifies PARKEON, in accordance with the preceding paragraph, of its disagreement with an invoice). Such payment shall be made in U.S. Dollars without any deduction, set-off or counterclaim. 2 For any amounts due to PARKEON that are not paid (and/or disputed) within the time limit provided herein, PARKEON may, without prejudice to any other rights or remedies, take one or several of the following measures: suspend provision of all or a portion of the Services to Customer; require advance payment; or charge interest at the rate of 1.5% on the unpaid balance of the disputed invoice. PARKEON may also terminate the Agreement with immediate effect by serving written notice if undisputed, due and payable amounts are not paid within sixty (60) Business days of the due date. SERVICE Applicable in this Agreement Technical Support Yes Services Parkfolio and On -Line Credit Card Processing Yes Maintenance No Extended Hardware Yes Warranty ARTICLE 5 — CONFIDENTIALITY Terms and conditions Detailed in Following Appendix Appendix 1 Appendix 2 Appendix 3 Appendix 4 Price and Invoicing Technical support shall be billed at an hourly rate of $135.00, as needed, for on site support to be billed in 1/2 hour increments with a maximum of $810.00 per day, not to exceed $67,308 per year. $50.00 per paystation per month. Billed Monthly. Not Applicable $47 per DG paystation not under warranty, per month, and not to exceed $142,692 annually. Each party hereby undertakes to keep secret, and considers as strictly confidential, any and all information disclosed by the other party during the performance of the Services, which are in tangible form and identified as confidential (the "Confidential Information"). 3 Each party hereby undertakes (i) to take all necessary measures to ensure the strict confidentiality of the other party's Confidential Information and (ii) to restrict the use of the other party's Confidential Information to the supply or the receipt of the services contemplated hereunder. However, the parties shall not be bound by these confidentiality and restricted use obligations if the Confidential Information (i) is in the public domain, or otherwise become part of the public domain through no breach of this article; (ii) is received from third parties which are not bound by any confidentiality obligation in relation to such Confidential Information; (iii) is in the receiving party's possession at the time of disclosure by the disclosing party and was not acquired, directly or indirectly, from the disclosing party; (iv) is, or has been, independently developed by the receiving party before their disclosure; (v) if Customer determines, in its sole and reasonable judgement, that it is required to disclose Confidential Information pursuant to applicable Florida Public Records Laws, as same may be amended from time to time; or (vi) if either party is required to disclose Confidential Information pursuant to court order or other judicial mandate. Notwithstanding the foregoing, the Customer hereby consents that PARKEON may mention the provision of the Services for the limited purpose of listing Customer as a reference as an its existing customers. Subject to Customer's prior written consent, PARKEON may disclose the Confidential Information or any element thereof to any of its affiliates and keep all its working documents (in written and electronic form) for its own use and for the internal use of any other affiliate. An affiliate shall be defined as a third party provider required to resolve any related issues. Upon any breach or threatened breach of the confidentiality and restricted use obligations by a party, the other will be entitled to injunctive relief, in addition to any other available remedies. ARTICLE 6 - INTELLECTUAL PROPERTY RIGHTS PARKEON shall remain the sole owner of any and all know-how, tools, software, technology and other information (as well as of the intellectual/industrial property rights pertaining thereto) used for the performance of the Services under this Agreement. ARTICLE 7 — TERM AND TERMINATION 7.1 This Agreement shall come into force upon the date first written above and shall be valid for an initial term of two (2) years. This Agreement may be renewed, at the sole and absolute discretion of Customer, for an additional one (1) year term, 4 upon thirty (30) days written notice to PARKEON, prior to the expiration of the initial term. 7.2 Either party may terminate this Agreement immediately at any time by notice in writing to the other if the other: commits a substantial breach of this Agreement and fails to remedy that breach within thirty (30) days of receiving written notice thereof from the other party; or is unable to pay its debts or enters into compulsory or voluntary liquidation (other than for the purpose of effecting a reconstruction or amalgamation in such manner that the company resulting from such reconstruction or amalgamation if a different legal entity agrees to be bound by and assumes the obligations of the relevant party under this Agreement); or compounds with or convenes a meeting of its creditors, or has a receiver manager or an administrator appointed; or ceases for any reason to carry on business, or takes or suffers any similar action which in the reasonable opinion of the party giving notice means that the other may be unable to pay its debts. 7.3 Notwithstanding anything in this Article 7 or in the Agreement, Customer may cancel all or a portion of the Services in any Appendix to this Agreement without cause and for convenience upon thirty (30) days written notice to PARKEON. In the event of such cancellation any remaining portions of the Agreement shall remain in full force and effect, except that PARKEON shall make a pro -rata adjustment to the prices and/or the payments to be made by Customer pursuant to Article 4 of the Agreement. In the event of cancellation of all of the Services under this Agreement, Customer shall pay PARKEON for all Services actually rendered by PARKEON up to the date of termination (as set forth in the Notice), and thereafter Customer shall have no further liability to PARKEON. 7.4 The termination or expiration of this Agreement shall not affect Articles 5, 6, 8, 9 and 14 which shall survive such expiration or termination. ARTICLE 8 — LIMITED LIABILITY Notwithstanding anything to the contrary in this Agreement, in no event shall PARKEON be held liable for: - loss, damage or destruction of Customer's property caused by burglary, acts of vandalism, fire, flood and any other act of God or act or omission of third parties not related to PARKEON; - the availability or security of the cellular networks; - damages resulting from or arising out of any illegal and/or fraudulent use of the services by Customer. 5 Notwithstanding anything to the contrary in this Agreement, in no event shall PARKEON be liable for any special, incidental, punitive, indirect or consequential damages or losses of any kind or nature (such as, but not limited to, loss of revenues, loss of profits, loss of use, or loss of opportunities), whether arising under contract, tort (including negligence), strict liability or any other form of action, whether or not PARKEON has been advised of the possibility thereof. ARTICLE 9 - WAIVER No waiver of any term, provision, right or covenant in this Agreement, nor any consent by either party to the other party's departure from the terms hereof, shall be valid or enforceable, unless such waiver is in writing and signed by the party against whom enforcement is sought, and then shall apply to the specific term, provision, right or covenant identified in such waiver on that particular instance. No failure or delay by any party in exercising any right, power, privilege or remedy under this Agreement shall impair such right, power, privilege or remedy or operate or be construed as a waiver or variation thereof or preclude its exercise at any subsequent time or on any subsequent occasion, and no single or partial exercise of any such right, power, privilege or remedy shall preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy. ARTICLE 10 — ASSIGNMENT This Agreement shall inure to the benefit of, and be binding upon, the parties and their respective heirs, administrators, legal representatives, successors and assigns. Neither this Agreement in its whole, nor the rights and obligations herein shall be assigned, delegated or otherwise transferred by either party without the prior written consent of the other, and any attempt to do so shall be void. PARKEON shall only be entitled to subcontract all or part of its obligations under this Agreement subject to the prior consent of Customer, which consent shall not be unreasonably withheld. ARTICLE 11 — NOTICES Notices or other communications to either party shall, unless expressly provided for otherwise in this Agreement, be given in writing to the relevant party and may be delivered personally, by facsimile or by placing in the United States mail, first class and certified, return receipt requested, with postage prepaid and addressed as follows: 6 PARKEON : 40 Twosome Drive Unit #7 Moorestown, NJ 08057 Fax: Attention : Ian Newberg Customer : City of Miami Beach Parking Department 309 23rd Street, Suite 200 Miami Beach, FL 33139 Attention : Saul Frances, Parking Director Addresses may be changed by either party from time to time and shall be notified to the other party. All notices and other communication hereunder shall be deemed to have been given as of the date of delivery by hand, or five (5) Business days after posting when mailed by registered or certified mail, postage prepaid, or twenty-four (24) hours after dispatch if sent by facsimile during business hours of the receiving party. Refusal to accept delivery has the same effect as receipt. ARTICLE 12 - FORCE MAJEURE Neither party to this Agreement shall be liable to the other for any loss, damage, delay or failure in performance of its obligations under this Agreement to the extent that such Toss, damage, delay or failure is the result of a Force Majeure event. Force Majeure events shall mean acts of God, armed conflicts, war, insurrection, acts of terrorism or acts committed in furtherance of terrorism, riots, earthquakes, hurricanes, floods, unusually severe weather, civil disturbances, unavailability of power or other supplies, delays in procuring materials from third parties, strikes, fire, acts of any governmental authority, or any other cause beyond the control of the parties. The party claiming to be affected by a Force Majeure event shall give notice in writing to the other party within a reasonable period of time after the occurrence of the Force Majeure event specifying the nature and extent thereof. The parties shall then meet and discuss the possible solutions to implement in order to remedy the situation. Should the Force Majeure event(s) continue for a period of more than two (2) months, either party shall be entitled to terminate this Agreement with a fifteen (15) day prior written notice. ARTICLE 13 — ENTIRE AGREEMENT This Agreement (including all Appendices, Schedules and Exhibits) represents the complete and final understanding and agreement between the parties with respect to the subject matter hereof and supersedes all prior oral or written negotiations, 7 understandings and representations (if any) made by or between such parties on this subject. This Agreement may be amended only by way of a written document making specific reference to this Agreement and signed by authorized representatives of both parties. ARTICLES 14 - GOVERNING LAW AND EXCLUSIVE VENUE This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami -Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, PARKEON AND CUSTOMER EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. IN WITNESS WHEREOF, the duly authorized representatives of the parties have executed this Agreement. ATTEST: CITY OF MIAMI BEACH, FLORIDA By:(&1Itt&I' li. CITY CLERK ' MAYOR ATTEST: PARKEON By: I AA u e: bS /i Nalk et/146 Name: Peres{ Li- iea Title: ff Ai Title: Coil- o I I e.i— APPROVED AS TO FORM NGUAGE a FO - ECUTION 8 iZ O i' ae Appendix 1 — Technical Support Services This section describes the services provided by Parkeon for the technical support of pay stations. This includes service of the actual pay station and its internal components. Parkeon will provide Level II Remote, Call -In Service to CUSTOMER's Level I technical support staff during Parkeon's published support hours. In addition, PARKEON will provide: 1. Level 1 support training to CLIENT staff shall be provided as needed at the flat fee of $540 per 4 hour session. 2. Level 11 on-site support as needed shall be billed in 1/2 hour increments at the rate of $135/hour not to exceed $810 per day. 3. Unlimited Remote Level 11 call in remote support shall be provided at no cost (See Appendix) Total amount of Appendix 1 - Technical Support Services of the contract shall not exceed the annual amount of $67,308. CUSTOMER Responsibilities — CUSTOMER is responsible for Level 1 technical service and maintenance for all machines purchased through this Agreement. The responsibilities include: 1. Reporting all requests into Parkeon Product Support using the contact methods specified in the Level I Service Guide. 2. Opening the machine and the removal or replacement of any internal component. 3. Execution of self-diagnostic and other repair processes, which will be explained in Level 1 Service training and are also documented in the Level 1 Service Guide and other documentation to be provided at the time of training. 4. Programming changes to the Pay Station using the maintenance procedures that are available at the maintenance keyboard on the Pay Station and explained during Level 1 Service training. 5. Maintaining a log of repair activity performed by THE CLIENT support technicians, which will be readily available for reference purposes during a call to Parkeon Level 11 Service. 6. Maintaining a local supply of parts sufficient to meet the clients desired repair timelines. 7. Monitoring and ensuring that Level I Service staff are completing all prescribed Level 1 diagnosis and repair steps prior to escalating the problem to Parkeon for Level II support. 8. Ensuring that all Level 1 Service staff have sufficient electro -mechanical skills to perform the role of technician for the purposes of supporting the pay station. 9. Ensuring that Level I Service staff working on Parkeon devices have successfully completed the full training program provided by Parkeon, and that these trained staff are those making contact to the Parkeon Level 11 escalation helpdesk. 9 10. Ensuring that all "new" staff, or staff who have not been previously trained by Parkeon will successfully complete Parkeon's Level 1 Service training prior to service the Pay Station. 11. Use their own staffing, spare parts and logistics processes to provide Level 1 Service. 12. Use their own appropriate internet service group to provide desktop client, server, network and infrastructure service necessary to maintain the proper functioning of the Parkfolio system. 13. Provide all information required to open a support request with Parkeon Level II Service and make themselves available to work with the Parkeon support resource assigned to the support request. 14. New applications, products and versions implemented by Parkeon during the term of this Agreement will move into THE CLIENT's Level 1 support model through THE CLIENT's process. CUSTOMER will be responsible for initiating and ensuring completion of the appropriate process. 15. Parkeon is dependent on other internal groups within CUSTOMER for services (i.e., help desk, Level I support, maintenance, collections). CUSTOMER will manage the interface into its internal groups in a way that supports Parkeon's provision of services under this Agreement. Parkeon Responsibilities — Parkeon is responsible for Level II Remote Call -In Service for all machines purchased through this agreement. Level II Remote Call -In Service is defined as assistance once CUSTOMER's on-site Level I support has fully attempted to service the Pay Station locally consistent with Level I training and is not able to affect the correct repairs. Level II Remote Call -In Service includes: 1. Parkeon will maintain a staffed and capable Level II Remote Call -In Service operation, which is capable of assisting CUSTOMER once they have attempted the full range of Level I diagnosis and repair activities. 2. At the commencement of this Agreement, Parkeon will conduct Level I Service training of CUSTOMER's technicians. This includes topics such as basic maintenance, troubleshooting, repairs, component replacement and operations such as programming and inventory. 3. Parkeon will log all information from CUSTOMER required to establish contact information, document the nature of the problem and CUSTOMER's hardware/network environment (as applicable). 4. Parkeon will prioritize all incoming support calls based on severity of impact. This includes the level of functionality impacted and the number of machines impacted. 5. Parkeon will attempt to resolve problems at the first contact. 6. Parkeon will escalate support requests internally as necessary. 7. Parkeon will convene regular service review meetings with CUSTOMER at which time the service history will be reviewed since the last review period. 10 Services NOT Covered Under This Agreement - This Agreement does not cover the following requests. However, Parkeon would be pleased to provide a separate statement of work in proposing services to address any of the following: 1. Evaluation or Procurement of new software or hardware—Evaluation or approval of new software or hardware for use by CUSTOMER in conjunction with Parkeon products or services. This includes systems developed outside of CUSTOMER, such as third-party systems, or systems developed by CUSTOMER. 2. On-call Parkeon dedicated support - Requests for dedicated on-site or on-call support will be quoted on a case by case basis. 3. Level I Service – Local Help Desk, Technical and Infrastructure support shall be provided by CUSTOMER for their customers. Examples of this support includes Parkfolio support, credit card transaction research and resolution, pay station operational support, pay station technical support. CUSTOMER will perform all Level 1 duties for the term of this Agreement. 4. Assistance with Parkfolio or Pay-Station usage when unsupported or nonstandard hardware or software is involved—Use of unsupported or nonstandard hardware or software often results in unexpected behaviour of otherwise reliable systems. 5. Adaptive maintenance—Defined as activities relating to upgrades or conversions of the Parkfolio application, the Parkfolio Pay stations or it associated operating software due to new versions of the operating environment, in which the Parkeon product is functioning. 6. Modifications to original application, changes in CUSTOMER's organization or business needs (such as a reorganization or change in business practice) may make the current specification obsolete. When this occurs, CUSTOMER should initiate a request for enhancement to update the system to address the changes. 7 Parkeon Paystations communicate through the public cellular communication network. Occasionally the cellular networks experience capacity, interference, equipment and other problems which are unforeseeable and outside of Parkeon's ability to correct. From time to time the cellular provider may make unannounced changes to their services which impact communications. Parkeon is in no way liable for the impacts caused by the performance of the cellular providers; Parkeon takes very seriously its responsibility to work with the cellular provider to achieve a timely resolution and treats communications problems that impact paystation performance as a priority issue. 11 Appendix 2 — Parkfolio System Management CUSTOMER RESPONSIBILITIES CUSTOMER is responsible for Level I Parkfolio service and maintenance for all client PC's that are running the Parkfolio application. Level I includes: 1. Maintaining their desktop and file server computers, LAN connections, Internet connections and other aspects of the operating environment in a manner which allows the operation of the Parkfolio software. 2. Insuring that all staff using Parkfolio have successfully completed the full Parkfolio training program as provided by Parkeon. 3. Creating, executing and managing their various reports of using Parkfolio data. 4. Maintaining adequate backups of all data and analysis created by [client] staff that might be needed at another time. In particular any data older than 45 days. 5. Maintaining their desktop and file server computers, LAN connections, internet connections and other aspects of the operating environment in a manner which ensures ongoing compatibility with all Parkeon installed software and programs. 6. Ensure that CUSTOMER's staff are completing all prescribed Level I diagnosis and repair steps prior to escalating the problem to Parkeon for Level II escalation support. 7. Ensure that all "new" staff, or staff who have not been previously trained by Parkeon will successfully complete Parkeon's Parkfolio training prior escalating issues to Parkfolio escalation support. 8. CUSTOMER will use their own support process to provide level 1 support. 9. CUSTOMER will use their own appropriate IS group to provide server, network, firewall, and infrastructure support services, including Web server, authentication software, WebObjects' Monitor, software installation, application installation on production servers, database connections, and database changes. 10. CUSTOMER will provide all information required to open a support request with Parkeon Level II Parkfolio support and make themselves available to work with the Parkeon support resource assigned to the support request. 11. Communication to PARKEON of all instructions for the payment of all transactions (specify here the time periods required); 12. Removing the equipment at the termination of the contract or moving the equipment should a unit require re-siting; 13. Site visits which are due to an incident of Force Majeure or similar, such as but not limited to flooding, riots and lightning; 14. Cost of replacement batteries when at the end of normal life expectancy (2-3 years) over and above one (1) replacement per machine. 12 PARKEON RESPONSIBILITIES Parkeon is responsible for Level II Remote Call -In Parkfolio Service. Level II Parkfolio Remote Call -In Parkfolio Service defined as remote assistance once the CUSTOMER is fully trained, on-site Level I service has fully attempted to resolve the Parkfolio issue locally and is not able to resolve the issue. Level II Remote Call -In Parkfolio Service includes: 1. Parkeon will maintain a staffed and capable Level II Parkfolio support operation, which is capable of assisting the CUSTOMER once they have attempted the full range of Level I diagnosis and repair activities. 2. At the time of installation, Parkeon will conduct training of the CUSTOMER's staff in the various elements of supporting Parkfolio. 3. Parkeon will log all information from CUSTOMER required to establish contact information, document the nature of the problem and CUSTOMER's hardware/network environment (as applicable). 4. Parkeon will attempt to resolve problems over the phone on first call. 5. Parkeon will escalate Parkfolio support requests to next level of internal support as necessary. 6. Parkeon will provide up to 5 licenses for access to the Parkfolio system. 7. Parkeon will provide 1 year of data backup. Services NOT Covered Under This Agreement This Agreement does not cover the following requests. However, Parkeon would be pleased to provide a separate statement of work in proposing services to address any of the following: a. Evaluation or Procurement of new software or hardware—Evaluation or approval of new software or hardware for use by CUSTOMER in conjunction with Parkeon products or services. This includes systems developed outside of CUSTOMER, such as third -party systems, or systems developed by CUSTOMER. b. On-call Parkeon dedicated support - Parkeon prioritizes client issues based on severity and order of receipt. Requests for dedicated on-site or on-call support will be quoted on a case by case basis. c. Level I support – Local Parkfolio support shall be provided by CUSTOMER for their customers. d. Data older than 90 days. Parkeon archives data for no more than 90 days. Client must archive their data and historical analysis. e. Software licensing—Parkeon will not provide software or licensing for software being used with Parkeon products that is not part of the Parkeon Pay Station, 13 Parkfolio, or other Parkeon products provided by Parkeon to CUSTOMER. CUSTOMER will provide such software and licensing as needed. f. Assistance with Parkfolio when unsupported or nonstandard hardware or software is involved—Use of unsupported or nonstandard hardware or software often results in unexpected behavior of otherwise reliable systems. Services Parkfolio servers hosting by Parkeon Parkfolio servers administration by Parkeon Parkfolio data back-up & archive by Parkeon Phone assistance by Parkeon to Customer Internet Access to Parkfolio Supervision features from Customer's PC stations Alarms & Status Internet Access to Parkfolio Supervision features from Customer's PC stations Service Level Agreement 24h/24 — 7d/7* 8:30 am to 5:30 pm — Monday to Friday Public holidays days excluded 8:30 am to 5:30 pm — Monday to Friday Public holidays days excluded. Archive duration 1 year 8:30 am to 5:30 pm — Monday to Friday. Public holida s da s excluded 24h/24 — 7d/7* 5 users max. in total for all services 24h/24 — 7d/7* 5 users max. in total for all services Transmission by Parkeon of P&D events In real time when the event occurs* by SMS or e-mail to Customer maintenance agent Internet Access to Parkfolio Financial features from Customer's PC stations P&D communication with the Parkfolio server * Out of data center maintenance period lncludin 80 SMS maximum er P&D •er ear 24h/24 — 7d/7* 5 users max. in total for all services 24h/24 — 7d/7* Prices are per terminal / per month commencing from the first day of the calendar month the machine first connects to the server if connection occurs before the 15th of the month. If connection occurs on or after the 15th, billing will commence on the first day of the following calendar month. 14 Appendix 3 — Maintenance Services 1 Preventative Maintenance shall cover all services of routine maintenance of the EQUIPMENT. 2. PARKEON will provide the parts necessary to replace any defective parts during each Preventative Maintenance visit. 3. PARKEON will provide 2 EMS services per calendar year as part of this Agreement. a. The two annual EMS visits will be scheduled between PARKEON and CUSTOMER and mutually agreed at least two weeks in advance. 4. Both labor and travel costs for the maintenance visits form an integral part of this Agreement. RESTRICTIONS 1 The replacement and supply of tickets, all types of battery, as well as any maintenance or cleaning of the external parts of the housing shall all be invoiced to the CUSTOMER. 2 Any site visits by PARKEON to repair damage resulting from acts of vandalism, accident (vehicle impact), failure in the electricity supply, operator error, (e.g. but not limited to: no ticket stock, no coin box fitted, wrong time/date) or rust attack, will be invoiced on the basis of estimates provided by PARKEON and agreed in writing by the CUSTOMER. Every effort will be made by PARKEON to provide these estimates with the minimum of delay. 3 The terms "vandalism" or "vandalized" shall mean any willful damage caused to the EQUIPMENT (break-ins etc.) which affects the appearance or operation of the EQUIPMENT or interferes with the normal use of the EQUIPMENT. CUSTOMER'S OBLIGATIONS The CUSTOMER is responsible for the following obligations, which are excluded from PARKEON's obligations: 1. Replacement of the EQUIPMENT when no longer capable of repair, for whatever reason (excluding the fault or negligence of PARKEON). 2. Removing or moving the EQUIPMENT. 3. All electrical installation accessories other than those which form an integral part of the EQUIPMENT, as well as connection cables between machines, or in the event of failure of the latter due to external phenomena: accidental deterioration, external interference... 15 4. Site visits, which are due to an incident of Force Majeure or similar, such as but not limited to flooding, riots, lightning.... 5. Supply of keys and good working locks. Services Performed during the Preventative Maintenance Visit include: 1.1 Check the workina of the escrow block and printer 1.2 Check the card reader and extension cable (Optional) 1.3(a) Check the position of the inner door and the coin inlet (DG Only) 1.3(b) Check the coin detector operation 1.4(a) Verify the coin blocking operation (Stelio / Strada) 1.4(b) Check the mechanical setting of the coin inlet electromagnet (DG Only) 1.5 Check the operation of the "ticket" "card debit" and "cancellation" buttons 1.6 Various controls 1.7 Clean the coin selector 1.8 Lubrication 1.9 Test battery voltages 2.0 Check the operation of the machine 16 Appendix 4 Extended Hardware Warranty ARTICLE 1 — Service Definition PARKEON will provide an initial "seed stock" of parts per attached list, to be housed at CUSTOMER site. This seed stock will be based on frequency of use and the number of paystations being supported. PARKEON will also provide an initial inventory of these parts. CUSTOMER will replace parts from this seed stock as part of its normal Level 1 diagnosis and repair process. Every week the CUSTOMER will ship any parts that require repair back to PARKEON using a Return Material Authorization (RMA), which is received via telephone from PARKEON's Sales Administration department. PARKEON will provide a replacement for any faulty part received from the CUSTOMER. The CUSTOMER will pay shipping to PARKEON and PARKEON will pay for shipping of replacement part back to the CUSTOMER. PARKEON will replace parts with repaired or refurbished parts. This warranty does not include "wear or usage items" such as paper, batteries. Labor is not covered under this agreement. CUSTOMER will perform the actual problem diagnosis and part replacement at the Paystation. Upon request by the CUSTOMER and agreement by PARKEON, PARKEON will perform on-site support using the CUSTOMER's spare parts. This service will be charged at $135.00 per hour. Any repair of damage resulting from acts of vandalism, accident (vehicle impact), failure in the electricity supply, operator error, (e.g. but not limited to: no ticket stock, no coin box fitted, wrong time/date), or rust attack, is not covered under this agreement. PARKEON will provide estimates of this repair cost upon receipt of a written request by from the CUSTOMER. The terms "vandalism" or "vandalized" shall mean any willful damage caused to the Paystation (break-ins etc.), which affects the appearance or operation of the Paystations or interferes with the normal use of the Paystations. ARTICLE 2 — ADDITIONAL PARKEON OBLIGATIONS 1. PARKEON will provide training at the commencement of this agreement in the process of obtaining a RMA and shipping parts to PARKEON. 2. PARKEON will maintain inventory per attached "seed stock" list so that it can provide replacement parts within five (5) business days of RMA so that The City of Miami Beach's "seed stock" is able to support the necessary field replacements. Failure to maintain inventory levels will result in liquidated damages to the CUSTOMER of $100 per day for each day beyond the expected delivery date. 17 3. PARKEON will return a repaired or refurbished part that is equal in quality to the part received. 4. PARKEON will pay for shipment of replacement parts to The City of Miami Beach. 5. PARKEON will staff a Level II escalation support function that can advise The City of Miami Beach with warranty parts replacement. ARTICLE 3 — ADDITIONAL CITY OBLIGATIONS 1. CUSTOMER will complete all the necessary Level I diagnosis steps before determining that a part is faulty and in need of repair. 2. CUSTOMER will maintain the certification level of all CUSTOMER staff that are performing technical service to the Paystations or operating the Parkfolio software. 3. CUSTOMER will ship all defective parts to PARKEON on a regular weekly basis. CUSTOMER agrees that no defective part will remain in it's stock more than 7 days prior to being shipped to PARKEON. 4. CUSTOMER will follow all instructions (labeling, addressing, packaging, etc) specified by PARKEON Sales Admin to send and process a RMA in order to ensure quick processing of the repair order. 5. CUSTOMER will complete the recommended Paystations preventative maintenance process and intervals to maximize useful life of the parts within the paystation. 6. CUSTOMER will replace any Paystations when no longer capable of repair, for whatever reason (excluding the fault or negligence of PARKEON). 7. CUSTOMER will maintain the concrete mounting pad and mounting hardware per the installation specifications. 8. CUSTOMER will remove, reinstall or relocate the Paystations as needed. 9. CUSTOMER will maintain all electrical installation accessories other than those that form an integral part of the Paystations, as well as electrical connections to the Paystations. 10. CUSTOMER will maintain a log of all parts replacements which will be made available to PARKEON upon demand. 11. CUSTOMER will provide PARKEON access to validate seed stock inventory twice a year as requested by PARKEON. 18 Part Number 404005422 404302126 404402156 137608 139318 118767 134437 134438 124379 123381 123843 106674 106672 404302291 404403021 404402348 112514 113378 111531 113790 110487 104444 400600403 404402230 100200 100114 100201 110515 110513 110512 123384 104397 104398 123379 136336 136335 122813 (long) 122968 (long) 404402233 123962 400600413 113399 106187 404402383 110837 104377 134433 404402389 143916 124368 Initial "Seed Stock" List Description Mainboard Coin inlet sensor Main cable Printer Bill acceptor Coin selector Mag kit Card entry kit Optical detector Interface board Relay card Coin microswitch Coin inlet electro Solar charger Upper ribbon cable Solar battery cable Escrow Reinforced bowl flap Ticket bowl Coin bowl Ticket outlet flap Escrow Cam spring Solar battery MSIO cable Green button Red button Blue button Control rod Payment unit cam Coin return cam Bill microswitch Coinbox cover Coinbox wall Bill flap cable Bill flap (Mx rdr) Bill axle (Mx rdr) Bill flap Bill axle Peripheral power cable Collection - 2 lock and 3 key set 20 W panel Display Glass Instructions panel glass Bill acceptor supply cable Anti static glass Coin inlet flap Card reader Interface board cable Modem Antenna 19 Unit Price $1,877.80 $159.50 $107.80 $1,191.90 $1,743.00 $977.30 $19.00 $46.40 $180.00 $220.00 $118.00 $59.80 $78.10 $362.50 $78.90 $75.40 $136.10 $41.80 $36.90 $56.20 $16.70 $17.20 $174.00 $46.20 $14.00 $14.00 $14.00 $8.50 $18.60 $18.60 $80.00 $42.80 $42.80 $44.00 $26.00 $8.00 $55.00 $31.00 $37.20 $236.00 $857.00 $15.60 $111.40 $12.00 $52.00 $21.90 $1,440.00 $19.50 $1,857.00 $82.00 Total Quantity 10 10 10 20 20 10 7 5 10 10 10 5 10 2 10 5 3 10 3 3 5 10 3 5 10 5 5 5 5 5 25 3 3 10 5 5 5 5 3 4 1 2 2 2 2 10 7 3 5 5 Ext Price $18,778.00 $1,595.00 $1,078.00 $23,838.00 I $34,860.00 $9,773.00 1 $133.00 1 $232.00 1 $1,800.00 $2,200.00 $1,180.00 $299.00 1 $781.00 I $725.00 $789.001 $377.00 1 $408.30 $418.00 $110.70 $168.60 i 1 $83.50 1 $172.00 $522.00 I $231.00 $140.00 1 $70.00 $70.00 $42.50 $93.00 $93.00 1 $2,000.00 1 $128.40 $128.40 1 $440.00 1 $130.00 1 $40.00 $275.00 $155.00 $111.60 $944.00 $857.00 $31.20 $222.80 $24.00 $104.00 $219.00 $10,080.00 $58.50 $9,285.00 $410.00 $126,704.50