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Resolution 2009-38 RESOLUTION NO. 2009-38(R) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, HEREBY AUTHORIZING THE CITY MANAGER OF THE CITY OF WYLIE, TEXAS TO EXECUTE AN AGREEMENT BY AND BETWEEN THE CITY OF PLANO, TEXAS, THE CITY OF ALLEN, TEXAS, THE CITY OF WYLIE, TEXAS, THE CITY OF MURPHY, TEXAS AND MOTOROLA, INC. TO PROVIDE, DESIGN, AND IMPLEMENT A P25 TRUNKED RADIO SYSTEM FOR THE JOINT RADIO COMMUNICATIONS SYSTEM. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: The City Manager of the City of Wylie, Texas, is hereby authorized to execute, on behalf of the City Council of the City of Wylie, Texas, an agreement by and between the City of Plano, Texas, the City of Allen, Texas, the City of Wylie, Texas, the City of Murphy, Texas, and Motorola, Inc. to provide, design, and implement a P25 Trunked Radio System for the Joint Radio Communications System, attached hereto as Exhibit "A". SECTION 2 This Resolution shall take effect immediately upon its passage. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas on this the 8` day of December, 2009. Eric Hogue, Mayor ATTEST TO: QF y�� `ti Caro e Ehrlich, Cit Secretary T 1887�, Resolution No. 2009-38(R) Motorola for the Joint Radio Communications System 563464.v1 Communications System Agreement Motorola, Inc. ("Motorola") and the City of Plano, Texas, the City of Allen, Texas, the City of Wylie, Texas and the City of Murphy, Texas who are parties to an Interlocal Agreement for the purchase of a radio system (collectively referred to as "Cities" and individually as "City') enter into this "Agreement," pursuant to which the Cities will purchase and Motorola will sell the System, as described below. Motorola and the Cities may be referred to individually as a"Party" and collectively as the "Parties." For good and valuable consideration, the Parties agree as follows: Section 1 EXHIBITS The exhibits listed below are incorporated into and made a part of this Agreement. In the event of an inconsistency or conflict between the provisions of this Agreement and the Exhibits, the provisions in this Communications System Agreement shall take precedence over the Exhibits, and any inconsistency or conflicts between Exhibits A through M will be read and resolved in their listed order. Exhibit A Approved changes to the Motorola Proposal including the following documents: (1) Post-Proposal Changes to Motorola Point by Point Responses to RFP (2) Redlined Proposed System Description dated December 4, 2009 (3) Redlined Proposed Implementation Plan Including a Preliminary Cutover Plan dated 12/4/09 (4) Redlined proposed System Pricing and Equipment List dated December 4, 2009 (5) Redlined Radio Coverage Analysis and Radio Coverage Maps dated December 4, 2009 (6) Coverage maps dated December 4, 2009 (7) Q&A Session 2 Follow-Up: PAWM Proposal Update (includes the updated pricing) dated Decem ber 4, 2009 (8) System Drawings Exhibit B Motorola's Response to the RFP Exhibit C Motorola "Software License Agreement" Exhibit D Payment Schedule as set forth in Section 8.2A of the RFP Exhibit E Insurance Requirements Exhibit F Insurance Certificate for the City of Plano, Texas Exhibit G Insurance Certificate for the City of Allen, Texas Exhibit H Insurance Certificate for the City of Wylie, Texas Exhibit I Insurance Certificate for the City of Murphy, Texas Exhibit J Affidavit of No Prohibited Interest Exhibit K Payment and Performance Bonds Exhibit L Enhanced System Support Statement of Work included in Motorola Response to the RFP Exhibit M "System Acceptance Certificate" Section 2 DEFINITIONS Capitalized terms used in this Agreement have the following meanings: 2.1. "Acceptance Tests" means those tests described in the Acceptance Test Plan. 2.2. "Beneficial Use" means when the Cities first use the System or a Subsystem for operational purposes (excluding training or testing). 2.3. "Confidential Information" means any information that is disclosed in written, graphic, verbal, or machine-recognizable form, and is marked, designated, or identified at the time of disclosure as being confidential or proprietary; or if the information is in verbal form, it is identified as confidential at the time of disclosure and is confirmed in writing within thirty (30) days of the disclosure. Confidential Information does not incfude any information that: is or becomes publicly known through no wrongful act of the receiving Party; is already known to the receiving Party without restriction when it is disclosed; is or becomes, rightfully and without breach of this Agreement, in the receiving Party's possession without any Motorola.CSA.FINAL.1.10.05.revision.doc 1 563153.v1 obligation restricting disclosure; is independentiy developed by the receiving Party without breach of this Agreement; or is explicitly approved for release by written authorization of the disclosing Party or information that is required to be released as determined by a written decision from the Texas Attorney General. 2.4. "Contract Price" means the price for the System, excluding applicable sales or similar taxes and freight charges. 2.5. "Effective Date" means that date upon which the last Party executes this Agreement. 2.6. "Equipment" means the equipment that the Cities purchase from Motorola under this Agreement. Equipment that is part of the System is described in the Equipment List. 2.7. "Force Majeure" means an event, circumstance, or act of a third party that is beyond a Party's reasonable control and affects the geographical area in which the system is manufactu�ed, staged, or installed (e.g., an act of God, an act of the public enemy, an act of a government entity, strikes or other labor disturbances, hurricanes, earthquakes, fires, floods, epidemics, embargoes, war, and riots). 2.8. "Infringement Claim" means a third party claim alleging that the Motorola or Non-Motoro�a Equipment or Software provided, sold or distributed by Motorola to the Cities infringes upon the third party's United States patent or copyright. 2.9. "Motorola Software" means Software that Motorola or its affiliated company owns. 2.10. "Non-Motorola Software" means Software provided or sold by Motorola to the Cities that another party owns. 2.11. "Open Source Software" (also called "freeware" or "shareware") means software that has its underlying source code freely available to evaluate, copy, and modify. 2.12. "Proprietary Rights" means the patents, patent applications, inventions, copyrights, trade secrets, trademarks, trade names, mask works, know-how, and other intellectual property rights in and to the Equipment and Software, including those created or produced by Motorola under this Agreement and any corrections, bug fixes, enhancements, updates or modifications to or derivative works from the Software whether made by Motorola or another party. 2.13. "Software" means the Motorola Software and Non-Motorola Software, in object code format that is furnished with the System or Equipment. 2.14. "Specifications" means the functionality and performance requirements that are described in the Technical and Implementation Documents. 2.15. "Subsystem" means a major part of the System that performs specific functions or operations. Subsystems are described in the Technical and Implementation Documents. 2.16. "System" means the Equipment, Software, and incidental hardware and materials that are combined together into an integrated system; the System is described in the Technical and Implementation Documents. 2.17. "System Acceptance" means the Acceptance Tests have been successfully completed. 2.18. "Warranty Period" means one (1) year from the date of System Acceptance or Beneficial Use, whichever occurs first. Section 3 SCOPE OF AGREEMENT, TERM AND DESIGNATION OF PROJECT MANAGER Motorola.CSA.FINAL.1.10.05.revision.doc 2 563153.v1 3.1. SCOPE OF WORK. Motorola will provide, install and test the System, and perform its other contractual responsibilities, all in accordance with this Agreement. The Cities will perform their contractual responsibilities in accordance with this Agreement. 3.2 SCHEDULE OF WORK. Motorola agrees to commence work immediately upon the execution of this Agreement, and to proceed diligently with said work in accordance with the Performance Schedule which provides that Motorola will achieve System Acceptance no later than December 31, 2010. 3.3. CHANGE ORDERS. Either Party may request changes within the general scope of this Agreement. If a requested change causes an increase or decrease in the cost or time required to perform this Agreement, the Parties will agree to an equitable adjustment of the Contract Price, Performance Schedule, or both, and will reflect the adjustment in a written change order. Neither Party is obligated to perf'orm requested changes unless both Parties execute a written change order. All requests for change orders shall be made through the Project Manager. The individual City upon whose behalf the request for that change order is made shall be responsible for all additional costs and/or expenses associated with the change order. "Extra" work or "claims" invoiced as such which have not been issued as a duly executed, written change order by the appropriate City Manager, will not be authorized for payment. A duly executed written change order shall be preceded by a request to the City Manager to execute said change order. 3.4. TERM. Unless terminated in accordance with other provisions of this Agreement or extended by mutual agreement of the Parties, the term of this Agreement begins on the Effective Date and continues until the date of Final Project Acceptance or expiration of the Warranty Period, whichever occurs last. 3.5. ADDITIONAL EQUIPMENT OR SOFTWARE. During the term of this Agreement, the Cities may purchase additional Equipment and Software under Section 3.3. In addition, for three (3) years after the Effective Date, the Cities may order additional Equipment or Software if it is then available. Each order must refer to this Agreement and must specify the pricing and delivery terms. Notwithstanding any additional or contrary terms in the order, the applicable provisions of this Agreement (except for delivery, passage of title and risk of loss to Equipment, warranty commencement, and payment terms) will govern the purchase and sale of the additional Equipment or Software. The pricing will comply with Section 13.2.1YYY of the RFP, which provides for a firm percentage discount off of the current list price of the Equipment or Software. Payment is due upon delivery and acceptance by the Cities in accordance with the Texas Prompt Payment Act (Texas Government Code Section 2251. For Equipment and Software purchased under this Section prior to System Acceptance which is intended to be incorporated into the System, title, risk of loss, and warranty will be controlled by this Agreement. Concerning Equipment and Software purchased under this Section that is not intended to be incorporated into the System or is purchased after System Acceptance, title and risk of loss will pass upon delivery and warranty will commence upon delivery. Motorola will send the Cities an invoice as the additional Equipment is shipped or Software is licensed. Alternatively, the Cities may register with and place orders through Motorola Online ("MOL"), and this Agreement will be the "Underlying Agreement" for those MOL transactions rather than the MOL On-Line Terms and Conditions of Sale. MOL registration and other information may be found at http:l/www.motorola.com/businessandqovernment/ and the MOL telephone number is (800) 814- 0601. 3.6. MAINTENANCE SERVICE. During the Warranty Period, Motorola will provide maintenance senrices for the Equipment and support for the Motorola Software and Non-Motorola Software pursuant to this Agreement, including the ESS Statement of Work. Those services and support are included in the Contract Price. If the Cities wish to purchase additional maintenance and support services for the Equipment during the Warranty Period, or any maintenance and support services for the Equipment after the Warranty Period, the description of and pricing for the services will be set forth in a separate document. If the Cities wish to purchase extended support for the Motorola Software or Non-Motorola Software after the Warranty Period, it may do so by ordering software subscription services as described in the Software Subscription section of the ESS Statement of Work. Unless otherwise agreed by the parties in writing, the terms and conditions applicable to those maintenance, support or software Motorola.CSA.FINAL.1.10.05.revision.doc g 563153.v1 subscription services will be Motorola's standard Service Terms and Conditions, together with the appropriate statements of work. 3.7. MOTOROLA SOFTWARE. Any Motorola Software, including subsequent releases, is licensed to the Cities solely in accordance with the Software License Agreement. The Cities hereby accept and agree to abide by all of the terms and restrictions of the Software License Agreement. 3.8. NON-MOTOROLA SOFTWARE. Any Non-Motorola Software is licensed to the Cities in accordance with the standard license, terms, and restrictions of the copyright owner on the Effective Date unless the copyright owner has granted to Motorola the right to sublicense the Non-Motorola Software pursuant to the Software License Agreement, in which case it applies and the copyright owner will have all of Licensor's rights and protections under the Software License Agreement. Non-Motorola Software may include Open Source Software. Motorola represents that, to the best of their knowledge, the Cities' use of Non-Motorola Software as described and provided for in this Agreement is a legally authorized use of said software, which does not constitute an infringement. The Cities enter into this Ag�eement relying on this representation. 3.9. SUBSTITUTIONS. At no additional cost to the Cities, Motorola may substitute any Equipment, Software, or services to be provided by Motorola, if the substitute meets or exceeds the Specifications and is of equivalent or better quality to the Cities. Any substitution will be reflected in a change order. 3.10 PROJECT MANAGER. The Parties agree that the City of Plano Radio System Manager shall be the Project Manager for the duration of the project which is the subject of this Agreement. The Project Manager shall be the liaison between the Cities and Motorola and all communication between the Cities and Motorola shall be made by and through the Project Manager. The Project Manager shall be responsible for project management services and technical expertise required to assure completion of the Project. In this capacity, the Project Manager is responsible for the oversight and facilitation of the successful completion of the Project. Section 4 PERFORMANCE SCHEDULE AND PAYMENT AND PERFORMANCE BOND 4.1 The Parties will perform their respective responsibilities in accordance with the Performance Schedule, included in the Motorola Response to the RFP. By executing this Agreement, the Cities authorize Motorola to proceed with contract performance. 4.2 In the event this Agreement amount exceeds $25,000.00, a Payment bond in the amount of not less than one hundred percent (100%) of the Agreement amount conditioned upon the payment of all person supplying labor or furnishing materials pursuant to the Agreement is required upon a form a provided by the Cities. In the event this Agreement exceeds $100,000.00, a Performance Bond in the amount of not less than one hundred and fifteen percent (115%) of the Agreement amount, conditioned upon the faithful performance of the Agreement, is required upon a form provided by the Cities. The bonds are attached hereto and incorporated herein as Exhibit "K." Section 5 CONTRACT PRICE, PAYMENT, INVOICING AND INSURANCE 5.1. CONTRACT PRICE. The Contract Price in U.S. dollars is in an amount not to exceed $19,104,907.00. If applicable, a pricing summary is included with the Payment Schedule. Motorola has priced the services, Software, and Equipment as an integrated system. A reduction in Software or Equipment quantities, or services, may affect the overall Contract Price, including discounts if applicable. Each City shall be responsible for an amount not to exceed the following: City of Plano; $12,271,398.00 City of Allen: $3,564,589.00 City of Wylie: $2,370,359.00 Motorola.CSA.FINAL.1.10.05.revision.doc q 563153.v1 City of Murphy: $898,560.00 5.2. INVOICING AND PAYMENT. Motorola will submit invoices separately to each City according to the Payment Schedule. Except for a payment that is due on the Effective Date, each City will make payments to Motorola in accordance with the Texas Prompt Payment Act (Texas Government Code Section 2251. Each City sha�l only be responsible for the individual charges/costs for their City and shall not be responsible for any charges/costs for another City Each City will make payments when due in the form of a wi�e transfer, check, or cashier's check from a U.S. financial institution. Each City will be invoiced for the percentage of the full installment payment amount equal to the percentage of the total Contract Price allocated to each in accordance with the Pricing Summary. For reference, the Federal Tax Identification Number for Motorola, Inc. is 36-1115800. 5.3 FREIGHT, TITLE, AND RISK OF LOSS. Title, care, custody, control and risk of loss of the non- subscriber Equipment will pass to the Cities upon complete installation of the Equipment at the sites. Title and risk of loss of subscriber equipment will pass to the Cities upon delivery. Title to Software wilt not pass to the Cities at any time. 5.4 INVOICING AND SHIPPING ADDRESSES. Invoices will be sent to each City at the address specified above. Software delivery shall be coordinated through the Project Manager. Storage, site delivery, and installation of the Infrastructure Equipment are the responsibility of Motorola until complete installation of the Equipment at the sites. Delivery and installation of any other Software and/or Equipment not specified in this section shall be coordinated through the Project Manager. Cities may change this information by giving written notice to Motorola. 5.5 INSURANCE AND CERTIFICATES OF INSURANCE. Motorola shall procure and maintain for the duration of the Agreement for the benefit of the Cities (listing each City, and its council members, officers, and employees as additional insureds on the general liability policy) insurance coverage as set forth in the Insurance Requirements marked as Exhibit "E" attached hereto and incorporated herein by reference. Motorola shall provide a signed insurance certificate fo� each City verifying that Motorola has obtained the required insurance coverage for each City immediately following the execution of this Agreement. Insurance Certificates for each City will be attached as follows: Exhibit "F" City of Plano, Texas Exhibit "G" City of Allen, Texas Exhibit "H" City of Wylie, Texas Exhibit "I" City of Murphy, Texas Section 6 SITES AND SITE CONDITIONS 6.1. ACCESS TO SITES. In addition to its responsibilities described elsewhere in this Agreement, the Cities will provide a designated project manager; all necessary construction and building permits, zoning variances, licenses, and any other approvals that are necessary to develop or use the sites; and access to the work sites as reasonably requested by Motorola so that it may perform its duties in accordance with the Performance Schedule and Statement of Work. If the Statement of Work so indicates, Motorola may assist the Cities in the local building permit process. Nothing contained in this paragraph shall be construed as the Cities' pre-approval or automatic approval of any type of permit or zoning application. Nor shall it be construed as the Cities waiver of its application and/or public hearing process. 6.2. SITE CONDITIONS. The Cities will ensure that all work sites it provides will be safe, secure, and in compliance with all applicable industry and OSHA standards. To the extent applicable and unless the Statement of Work states to the contrary, the Cities will ensure, to the extent possible, that these work sites have adequate: physical space; air conditioning and other environmental conditions; electrical power outlets, distribution and equipment; and telephone or other communication lines (including modem access and adequate interfacing networking capabilities), all for the installation, use and maintenance of the System. Before installing the Equipment or Software at a work site, Motorola will inspect the work site Motorola.CSA.FINAL.1.10.05.revision.doc 5 563153.v1 and advise the Cities of any apparent deficiencies or non-conformities with the requirements of this Section. This Agreement is predicated upon normal soil conditions as defined by the version of E.I.A. standard RS-222 in effect on the Effective Date. 6.3. SITE ISSUES. If a Party determines that the sites identified in the Technical and Implementation Documents are no longer available or desired, or if subsurface, structural, adverse environmental or latent conditions at any site differ from those indicated in the Technical and Implementation Documents, the Parties will promptly investigate the conditions and will select replacement sites or adjust the installation plans and specifications as necessary. If change in sites or adjustment to the installation plans and specifications causes a change in the cost or time to perform, the Parties will equitably amend the Contract Price, Performance Schedule, or both, by a change order. Section 7 TRAINING Any training to be provided by Motorola to the Cities will be described in the Statement of Work. The Cities will notify Motorola immediately if a date change for a scheduled training program is required. If Motorola incurs additional costs because the Cities reschedule a training program less than thirty (30) days before its scheduled start date, Motorola may recover these additional costs from the individual City requesting or receiving the training. Section 8 SYSTEM ACCEPTANCE 8.1. COMMENCEMENT OF ACCEPTANCE TESTING. Motorola will provide to the Cities at least ten (10) days notice before the Acceptance Tests commence. System testing will occur only in accordance with the Acceptance Test Plan. 8.2. SYSTEM ACCEPTANCE. System Acceptance will occur upon successful completion of all of the Acceptance Tests, whether it is part of the System or an individual subsystem. Upon System Acceptance, the Parties will memorialize this event by promptly executing a System Acceptance Certificate for the entire System, including individual subsystems. If the Cities believe the System has failed the completed Acceptance Tests, the Cities will provide to Motorola a written notice that includes the specific details of the failure. If the Cities do not provide to Motorola a failure notice within thirty (30) days after completion of the Acceptance Tests, System Acceptance will be deemed to have occurred as of the completion of the Acceptance Tests. Minor omissions or variances in the System that do not materially impair the operation of the System as a whole will not postpone System Acceptance but will be corrected according to a mutually agreed schedule. 8.3. BENEFICIAL USE. The Cities acknowledge that Motorola's ability to perform its implementation and testing responsibilities may be impeded if the Cities begin using the System before System Acceptance. Therefore, the Cities will not commence Beneficial Use before System Acceptance without Motorola's prior written authorization, which will not be unreasonably withheld. Motorola is not responsible for System performance deficiencies that occur during unauthorized Beneficial Use. Upon commencement of Beneficial Use, the Cities assume responsibility for the use and operation of the System. The term Beneficial Use will not include the use of any subscriber radios shipped under this Agreement and put into use on the current Cities' systems. 8.4 FINAL PROJECT ACCEPTANCE. Final Project Acceptance will occur after System Acceptance when all deliverables and other work have been completed. When Final Project Acceptance occurs, the Parties will promptly memorialize this final event by so indicating on the System Acceptance Certificate. Section 9 REPRESENTATIONS AND WARRANTIES 9.1. SYSTEM FUNCTIONALITY. Motorola represents that the System will perform in accordance with the Specifications in all material respects. Upon System Acceptance this System functionality representation is fulfilled. Motorola is not responsible for System performance deficiencies that are caused by anciflary equipment or software not furnished by Motorola pursuant to this Agreement which is attached to or used in connection with the System or for reasons or parties beyond Motorola's control, Motorola.CSA.FINAL.1.10.05.revision.doc g 563153.v1 such as natural causes; the construction of a building that adversely affects the microwave path reliability or radio frequency (RF) coverage; the addition of frequencies at System sites that cause RF interference or intermodulation; or the Cities change to load usage or configuration outside the Specifications. If the Cities provide a notice under Section 8.2 that they believe the System has failed an Acceptance Test, then Motorola shall address and remedy the failure as soon as practicable and at no additional cost to the Cities. Such remedy shall include all equipment, systems, and services necessary to pass the Acceptance Test. When Motorola believes it has successfully remedied the failure, Motorola shall so notify the Cities in a writing that specifies the measures taken by Motorola to remedy the failure. Upon the receipt of such notice by Motorola, the Parties shall repeat the portion of the previously failed Acceptance Test, unless the test that fails is the 30 day reliability test discussed in the RFP, in which case the full test will be repeated in the event of a major failure as defined in the RFP. The re-testing shalt commence as promptly as practical on a date reasonably acceptable to both the Cities and Motorola. Execution of the appropriate "System Acceptance Certificate" will constitute acceptance by the Cities. 9.2. EQUIPMENT WARRANTY. During the Warranty Period, Motorola warrants that the Equipment under normal use and service will be free from materiat defects in materials and workmanship. If System Acceptance is delayed beyond six (6) months after shipment of the infrastructure Equipment (excluding expressly the shipment of any subscriber radios) by events or causes within the Cities' control, this warranty expires eighteen (18) months after the shipment of the Equipment. 9.3. MOTOROLA SOFTWARE WARRANTY. Unless otherwise stated in the Software License Agreement, during the Warranty Period, Motorola warrants the Motorola Software in accordance with the terms of the Software License Agreement and the provisions of this Section 9 that are applicable to the Motorola Software. If System Acceptance is delayed beyond six (6) months after shipment of the Motorola Software (excluding any Software shipped with subscriber radios) by events or causes within the Cities control, this warranty expires eighteen (18) months after the shipment of the Motorola Software. 9.4. EXCLUSIONS TO EQUIPMENT AND MOTOROLA SOFTWARE WARRANTIES. These warranties do not apply to: (i) defects or damage resulting from: use of the Equipment or Motorola Software in other than its normal, customary, and authorized manner; accident, liquids, neglect, or acts of God; testing, maintenance, disassembly, repair, installation, alteration, modification, or adjustment not provided or authorized in writing by Motorola; the Cities' failure to comply with all applicable industry and OSHA standards; (ii) breakage of or damage to antennas unless caused directly by defects in material or workmanship; (iii) Equipment that has had the serial number removed or made illegible; (iv) batteries (because they carry their own separate limited warranty) or consumables; (v) freight costs to ship Equipment to the repair depot; (vi) scratches or other cosmetic damage to Equipment surfaces that does not affect the operation of the Equipment; and (vii) normal or customary wear and tear. 9.5. WARRANTY CLAIMS. To assert a warranty claim, the Cities must notify Motorola in writing of the claim before the expiration of the Warranty Period. Upon receipt of this notice, Motorola will (at its option and at no additional charge to the Cities) perform one of the following three options: repair the defective Equipment or Motorola Software, replace it with the same or equivalent product, or refund the price of the defective Equipment or Motorola Software. That action will be the full extent of Motorola's liability for the warranty claim. Repaired or replaced product is warranted for the balance of the original applicable warranty period. All replaced products or parts will become the property of Motorola. 9.6. ORIGINAL END USER IS COVERED. These express limited warranties are extended by Motorola to the original user purchasing the System (including all Cities) for commercial, industrial, or governmental use only, and are not assignable or transferable. 9.7. DISCLAIMER OF OTHER WARRANTIES. THESE WARRANTIES ARE THE COMPLETE WARRANTIES FOR THE EQUIPMENT AND MOTOROLA SOFTWARE PROVIDED UNDER THIS AGREEMENT AND ARE GIVEN IN LIEU OF ALL OTHER WARRANTIES. MOTOROLA DISCLAIMS ALL OTHER WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Motorola.CSA.FINAL.1.10.05.revision.doc 7 563153.v 1 Section 10 DELAYS 10.1. FORCE MAJEURE. Neither Party will be liable for its non-performance or delayed performance if caused by a Force Majeure. A Party that becomes aware of a Force Majeure that will significantly delay performance will notify the other Party promptly (but in no event later than fifteen days) after it discovers the Force Majeure. If a Force Majeure occurs, the Parties will execute a change order to extend the Pe�formance Schedule for a time period that is reasonable under the circumstances. 10.2. PERFORMANCE SCHEDULE DELAYS CAUSED BY THE CITIES. If the Cities (including their other contractors) delay the Performance Schedule, it will make the promised payments according to the Payment Schedule as if no delay occurred; and the Parties will execute a change order to extend the Performance Schedule and, if requested, compensate Motorola for all reasonable charges incurred because of the delay. Delay charges may include costs incurred by Motoro�a or its subcontractors for additional extension of the warranties; suspending and re-mobilizing the work; and preparing and implementing an alternative implementation plan. Delay charges shall not include freight, travel, additional engineering, project management or handling of Equipment or standby time. If the Parties agree that the System must be redesigned as a result of a delay, then such engineering costs to redesign the System will be included. Section 11 DISPUTES 11.1 In the event of a dispute regarding any aspect of this Agreement, the Parties shall refer the dispute to outside non-binding mediation for resolution prior to engaging in litigation. All Parties shall share equally in the costs of a certified mediator and each Party shall be responsible for their own attorney fees. Any mediation between the Parties shall be in Texas. 11.2 Disputes among the Cities that are independent of any dispute with Motorola shall be resolved according to the terms and provision of the interlocal agreement passed by resolution and adopted by each of the Cities titled: AGREEMENT BETWEEN THE CITY OF PLANO, TEXAS, AND THE CITY OF ALLEN, TEXAS, THE CITY OF WYLIE, TEXAS AND THE CITY OF MURPHY, TEXAS FOR JOINT RADIO COMMUNCIATIONS SYSTEM. Section 12 DEFAULT AND TERMINATION 12.1 DEFAULT BY A PARTY. If either Party fails to perform a material obligation under this Agreement, the other Party may consider the non-performing Party to be in default (unless a Force Majeure causes the failure) and may assert a default claim by giving the non-performing Party a written and detailed notice of default. Except for a default by the Cities for failing to pay any amount when due under this Agreement which must be cured immediately, the defaulting Party will have thirty (30) days after receipt of the notice of default to either cure the default or, if the default is not curable within thirty (30) days, provide a written cure plan. The defaulting Party will begin implementing the cure plan immediately after receipt of notice by the other Party that it approves the plan. During any period of default by Motorola, the Cities will be relieved of any obligation to make any payment associated with the Motorola default. If the Cities are the defaulting Party, Motorola may stop work on the project until it approves the Cities' cure plan. 12.2 TERMINATION BY CITIES. Unilateral termination by any individual City is prohibited. 12.3. FAILURE TO CURE. If a defaulting Party fails to cure the default as provided above in Section 12.1, unless otherwise agreed in writing, the non-defaulting Party may terminate any unfulfilled portion of this Agreement, subject to Sections 11.1 and 12.2 herein. In the event of termination for default, the defaulting Party will promptly return to the non-defaulting Party any of its Confidential Information. If the Cities are the non-defaulting Party, terminate this Agreement as permitted by this Section, and complete the System through a third Party, Customer may recover from Motorola reasonable costs incurred to complete the System to a capability not exceeding that specified in this Agreement less the unpaid portion of the Contract Price. To the extent required by law, the Cities will take reasonable actions to mitigate their respective damages and provide Motorola with detailed invoices substantiating the charges. Motorola.CSA.FINAL.1.10.05.revision.doc g 563153.v1 SECTION 13 INDEMNIFICATION 13.1. GENERAL INDEMNITY BY MOTOROLA. Motorola shall release, defend, indemnify and hold harmless the Cities and their officers, agents and employees from and against all damages, injuries (including death), claims, property damages (including loss of use), losses, demands, suits, judgments and costs, including reasonable attorney's fees and expenses, in any way arising out of, related to, or resulting from and to the extent caused by the negligent performance of the work or caused by the negligent act or omission or intentional acts of Motorola, its officers, agents, employees, subcontractors, licensees, invitees or any third parties for whom Motorola is legally responsible (hereinafter "claims"). In their sole discretion, Cities shall have the right to reasonably approve defense counsel to be retained by Motorola in fulfilling its obligation hereunder to defend and indemnify the Cities, unless such right is expressly waived by Cities in writing. Cities reserve the right to provide a portion or all of their own defense; however, Cities are under no obligation to do so. Any such action by Cities is not to be construed as a waiver of Motorola's obligation to indemnify Cities pursuant to this contract. Motorola shall retain defense counsel approved by Cities within seven (7) business days of the Cities written notice that they are invoking their right to indemnification under this Agreement. If Motorola fails to retain counsel within such time period and after providing reasonable notice, Cities sha�l have the right to retain defense counsel on their own behalf, and Motorola shall be liable for all costs incurred by Cities. 13.2. PATENT AND COPYRIGHT INFRINGEMENT. 13.2.1. Motorola will defend, indemnify and hold harmless at its expense any claim/suit brought against the Cities to the extent it is based on an Infringement Claim, and Motorola will indemnify the Cities for those costs and damages finally awarded against the Cities for an Infringement Claim. Motorola's duties to defend and indemnify are conditioned upon: the Cities promptly notifying Motorola in writing of the Infringement Claim; Motorola having sole control of the defense of the claim/suit and all negotiations for its settlement or compromise; and the Cities providing to Motorola cooperation and, if requested by Motorola, reasonable assistance in the defense of the Infringement Claim. In addition to Motorola's obligation to defend, and subject to the same conditions, Motorola will pay all damages finally awarded against the Cities by a court of competent jurisdiction for an Infringement Claim or agreed to, in writing, by Motorola in settlement of an Infringement Claim. 13.2.2. If an Infringement Claim occurs, or in Motorola's opinion is likely to occur, Motorola shall, at its expense: (a) procure for the Cities the right to continue using the Product; (b) replace or modify the Product so that it becomes non-infringing while providing functionally equivalent performance; or (c) accept the return of the Product and grant the Cities a credit for the Product, less a reasonable charge for depreciation. The depreciation amount will be calculated based upon generally accepted accounting standards. Motorola will proceed under Subsection (c) above only if Subsections (a) and (b) prove to be commercially unreasonable. 13.2.3. Motorola will have no duty to defend or indemnify for any Infringement Claim that is based upon: (a) the combination of the Equipment, Motorola Software or Non-Motorola Software with any software, apparatus or device not furnished by Motorola; (b) the use of ancillary equipment or software not furnished by Motorola and that is attached to or used in connection with the Equipment, Motorola Software or Non-Motorola Software; (c) Equipment, Motorola Software or Non-Motorola Software designed or manufactured in accordance with the Cities' designs, specifications, guidelines or instructions, if the alleged infringement would not have occurred without such designs, specifications, guidelines or instructions; (d) a modification of the Equipment, Motorola Software or Non-Motorota Software by a party other than Motorola; (e) use of the Equipment, Motorola Software or Non-Motorola Software in a manner for which the Equipment, Motorola Software or Non-Motorola Software was not designed or that is inconsistent with the terms of this Agreement; or (f) the failure by the Cities to install an enhancement release to the Motorola Software that is intended to correct the claimed infringement. In no event will Motorola's liability resulting from its indemnity obligation to the Cities extend in any way to royalties payable on a per use basis or or Cities' revenues, or any royalty basis other than a reasonable Motorola.CSA.FINAL.1.10.05.revision.doc g 563153.v1 royalty based upon revenue derived by Motorola from the Cities from sales or license of the infringing Equipment, Motorola Software or Non-Motorola Software. 13.2.4. This Section 13 provides the Cities' sole and exclusive remedies and Motorola's entire liability in the event of an Infringement Claim. The Cities do not have a right to recover and Motorola has no obligation to provide any other or further remedies, whethe� under another provision of this Agreement or any other legal theory or principle, in connection with an Infringement Claim. In addition, the rights and remedies provided in this Section 13 are subject to and limited by the restrictions set forth in Section 14. Section 14 LIMITATION OF LIABILITY Motorola and the Cities acknowledge that they have negotiated the Price (among other things) in consideration of their agreement to limit certain of Motorola's liabilities. Except for the obligations set forth is Section 13.2.1, in no event is Motorola or any of its suppliers or licensors liable for any indirect, special, exemplary, consequential or incidental damages (including lost profits, lost revenues and other economic fosses), however caused and regardless of whether such damages are foreseeable or whether Motorola has been advised of their possibility. EXCEPT FOR A CLAIM FOR PERSONAL INJURY, LOSS OF LIFE, OR DAMAGE TO REAL OR TANGIBLE PROPERTY CAUSED IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY BY MOTOROLA, MOTOROLA'S TOTAL LIABILITY UNDER THIS AGREEMENT WILL BE LIMITED TO DIRECT DAMAGES NOT EXCEED ONE AND ONE-HALF TIMES THE TOTAL CONTRACT PRICE. Section 15 CONFIDENTIALITY AND PROPRIETARY RIGHTS 15.1. CONFIDENTIAL INFORMATION. During the term of this Agreement, the parties may provide each other with Confidential Information. Subject to any obligations of the Cities under Texas law including the Open Records laws, each Party will: maintain the confidentiality of the other Party's Confidential Information and not disclose it to any third party, except as authorized by the disclosing Party in writing or as required by a court of competent jurisdiction; restrict disclosure of the Confidential Information to its employees who have a"need to know" and not copy or reproduce the Confidential Information; take necessary and appropriate precautions to guard the confidentiality of the Confidential Information, including informing its employees who handle the Confidential Information that it is confidential and is not to be disclosed to others, but these precautions will be at least the same degree of care that the receiving Party applies to its own confidential information and will not be less than reasonable care; and use the Confidential Information only in furtherance of the performance of this Agreement. Confidential Information is and will at all times remain the property of the disclosing Party, and no grant of any proprietary rights in the Confidential Information is given or intended, including any express or implied license, other than the limited right of the recipient to use the Confidential Information in the manner and to the extent permitted by this Agreement. If an Open Records request is submitted to the Cities requesting documents marked by Motorola as confidential, the Cities will provide Motorola reasonable notice of the request, but Motorola will be required to take whatever steps are necessary under the Open Records Act to protect the documents. If the Attorney General rules pursuant to written determination that the confidential information is subject to disclosure, the Cities shall release such information. 15.2. PRESERVATION OF MOTOROLA'S PROPRIETARY RIGHTS. Motorola, the third party manufacturer of any Equipment, and the copyright owner of any Non-Motorola Software own and retain all of their respective Proprietary Rights in the Equipment and Software, and nothing in this Agreement is intended to restrict their Proprietary Rights. All intellectual property developed, originated, or prepared by Motorola in connection with providing to the Cities the Equipment, Software, or related services remain vested exclusively in Motorola, and this Agreement does not grant to the Cities any shared development rights of intellectual property. Except as explicitly provided in the Software License Agreement, Motorola does not grant to the Cities, either directly or by implication, estoppel, or otherwise, any right, title or interest in Motorola's Proprietary Rights. The Cities will not modify, disassemble, peel components, decompile, otherwise reverse engineer or attempt to reverse engineer, derive source code or create derivative works from, adapt, translate, merge with other software, reproduce, distribute, sublicense, sell Motorola.CSA.FINAL.1.10.05.revision.doc p 563153.v1 or export the Software, or permit or encourage any third party to do so. The preceding sentence does not apply to Open Source Software which is governed by the standard license of the copyright owner. If an Open Records request is submitted to the Cities requesting documents marked by Motorola as proprietary, the Cities will provide Motorola reasonable notice of the request, but Motorola will be required to take whatever steps are necessary under the Open Records Act to protect the documents. If the Attorney General rules pursuant to written determination that the proprietary information is subject to disclosure, the Cities shall release such information. Section 16 GENERAL 16.1. TAXES. The Cities have represented that they are exempt from federal manufacturer's excise, state sales tax and state property taxes. Based upon such representation, Motorola has not included any taxes in the Contract Price. Motorola will be solely responsible for reporting taxes on its income or net worth. 16.2. ASSIGNABILITY AND SUBCONTRACTING. Motorola may subcontract any of the work, but subcontracting will not relieve Motorola of its duties under this Agreement. Except as provided herein, neither Party may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other Party, which consent will not be unreasonably withheld. Any attempted assignment, delegation, or transfer without the necessary consent will be void. Notwithstanding the foregoing, Motorola may assign this Agreement to any of its affiliates to the extent Motorola owns at least 50% of the affiliate or its right to receive payment without the prior consent of the Cities. In addition, in the event Motorola separates one or more of its businesses (each a"Separated Business"), whether by way of a sale, estabtishment of a joint venture, spin-off or otherwise (each a"Separation Event"), Motorola may, without the prior written consent of the other Party and at no additional cost to Motorola, assign this Agreement such that it will continue to benefit the Separated Business and its affiliates (and Motorola and its affiliates, to the extent applicable) following the Separation Event provided that the Government and Public Safety business which submitted the RFP response is included in the Separated Business. 16.3 SUCCESSOR AND ASSIGNS. The Cities and Motorola, and their partners, assigns, successors, subcontractors, executors, officers, agents, employees, representatives, and administrators are herby bound to the terms and conditions of this Agreement. 16.4 WAIVER. Failure or delay by either Party to exercise a right or power under this Agreement will not be a waiver of the right or power. For a waiver of a right or power to be effective, it must be in a writing signed by the waiving Party. An effective waiver of a right or power will not be construed as either a future or continuing waiver of that same right or power, or the waiver of any other right or power. 16.5. SEVERABILITY. If a court of competent jurisdiction renders any part of this Agreement invalid or unenforceable, that part will be severed and the remainder of this Agreement will continue in full force and effect. 16.6. INDEPENDENT CONTRACTORS. Each Party will perform its duties under this Agreement as an independent contractor. The Parties and their personnel will not be considered to be employees or agents of the other Party. Nothing in this Agreement will be interpreted as granting either Party the right or authority to make commitments of any kind for the other. This Agreement will not constitute, create, or be interpreted as a joint venture, partnership or formal business organization of any kind. 16.7. HEADINGS AND SECTION REFERENCES. The section headings in this Agreement are inserted only for convenience and are not to be construed as part of this Agreement or as a limitation of the scope of the particular section to which the heading refers. This Agreement will be fairly interpreted in accordance with its terms and conditions and not for or against either Party. 16.8. GOVERNING LAW. This entire Agreement is performable in Collin County, Denton County and Rockwall County, Texas and the venue for any action related directly or indirectly, to this Agreement or in Motorola.CSA.FINAL.1.10.05.revision.doc 563153. v1 any manner connected therewith shall be in Collin County, Texas, and this Agreement shall be construed under the laws of the State of Texas. 16.9. ENTIRE AGREEMENT. This Agreement, including all Exhibits, constitutes the entire agreement of the Parties regarding the subject matter of the Agreement and supersedes all previous agreements, proposals, and understandings, whether written or oral, relating to this subject matter. This Agreement may be amended or modified only by a written instrument signed by authorized representatives of both Parties. The preprinted terms and conditions found on any the Cities purchase order, acknowledgment or other form will not be considered an amendment or modification of this Agreement, even if a representative of each Party signs that document. 16.10. NOTICES. Notices required under this Agreement to be given by one Party to the other must be in writing and either personally delivered or sent to the address shown below by certified mail, return receipt requested and postage prepaid (or by a recognized courier service, such as Federal Express, UPS, or DHL), or by facsimile with correct answerback received, and will be effective upon receipt: Motorola, Inc. Attn: Commercial Law Dept. 6450 Sequence Drive San Diego, CA 92121 fax: 858 404-2594 City of Wylie Attn: Chief Randy Corbin 2000 Highway 78 North Wylie, Texas 75098 Fax: With a copy to: Attn: Courtney Kuykendall Abernathy, Roeder, Boyd Joplin P.C. 1700 Redbud Blvd. Suite 300 McKinney, Texas 75069 Fax: 214-544-4044 16.11. COMPLIANCE WITH APPLICABLE LAWS. Each Party will comply with all applicable federal, state, and local laws, regulations and rules concerning the performance of this Agreement or use of the System. The Cities will obtain and comply with all Federal Communications Commission ("FCC") licenses and authorizations required for the installation, operation and use of the System before the scheduled installation of the Equipment. Although Motorola might assist the Cities in the preparation of its FCC license applications, neither Motorola nor any of its employees is an agent or representative of the Cities in FCC or other matters. 16.12. AUTHORITY TO EXECUTE AGREEMENT. Each Party represents that it has obtained all necessary approvals, consents and authorizations to enter into this Agreement and to perForm its duties under this Agreement; the person executing this Agreement on its behalf has the authority to do so; upon execution and delivery of this Agreement by the Parties, it is a valid and binding contract, enforceable in accordance with its terms; and the execution, delivery, and performance of this Agreement does not violate any bylaw, cha�ter, regulation, law or any other governing authority of the Party. 16.13. SURVIVAL OF TERMS. The following provisions will survive the expiration or termination of this Agreement for any reason: Section 3.6 (Motorola Software); Section 3.7 (Non-Motorola Software); if any payment obligations exist, Sections 5.1 and 5.2 (Contract Price and Invoicing and Payment); Subsection 9.7 (Disclaimer of Implied Warranties); Section 11 (Disputes); Section 14 (Limitation of Liability); and Section 15 (Confidentiality and Proprietary Rights); and all of the General provisions in Section 16. Motorola.CSA.FINAL.1.10.05.revision.doc 2 563153.v1 16.14 AUDIT: The Cities reserve the right to audit the records and performance of Motorola during the term of the Agreement and for three years thereafter. The inspection will be limited to the verification of shipment to invoice quantities and shipment receipts. 16.15 SOVEREIGN IMMUNITY. The parties agree that the Cities have not waived their sovereign immunity by entering into and performing its obligations under this Agreement. 16.16 NO THIRD PARTY BENEFICIARIES. Nothing in this Agreement shall be construed to create any right in any third party not a signatory to this Agreement, and the parties do not intend to create any third party beneficiaries by entering into this Agreement. 16.17 APPROPRIATION OF FUNDS. Funds are not presently budgeted for the Cities performance under this Agreement beyond the end of the Customer's 2009-2010 fiscal year. The Cities will give Motorola sixty (60) days written notice if funds for Cities' performance are not budgeted to continue beyond that time. To the extent the Cities have provided the notice required above, the Cities shall not have liability for payment of any money for services performed after the end of Customer's 2009-2010 fiscal year unless and until such funds are budgeted. The Parties hereby enter into this Agreement as of the Effective Date. Motorola, Inc. City of Plano, Texas By: By: Name: Name: Title: Title: Date: Date: City of Allen, Texas City of Murphy, Texas By: By: Name: Name: Title: Title: Date: Date: City of Wylie, Texas By: Mindy Manson, City Manager Date: Motorola.CSA.FINAL.1.10.05.revision.doc g 563153.v1 Communications System Agreement Motorola, Inc. ("Motorola") and the City of Plano, Texas, the City of Allen, Texas, the City of Wylie, Texas and the City of Murphy, Texas who are parties to an Interlocal Agreement for the purchase of a radio system (collectively referred to as "Cities" and individually as "City") enter into this "Agreement," pursuant to which the Cities will purchase and Motorola will sell the System, as described below. Motorola and the Cities may be referred to individually as a"Party' and collectively as the "Parties." For good and �aluable consideration, the Parties agree as follows: Section 1 EXHIBITS The exhibits listed below are incorporated into and made a part of this Agreement. In the event of an inconsistency or conflict between the provisions of this Agreement and the Exhibits, the provisions in this Communications System Agreement shall take precedence over the Exhibits, and any inconsistency or conflicts between Exhibits A through M will be read and resolved in their listed order. Exhibit A Approved changes to the Motorola Proposal including the following documents: (1) Post-Proposal Changes to Motorola Point by Point Responses to RFP (2) Redlined Proposed System Description dated December 4, 2009 (3) Redlined Proposed Implementation Plan Including a Preliminary Cutover Plan dated 12/4/09 (4) Redlined proposed System Pricing and Equipment List dated December 4, 2009 (5) Redlined Radio Coverage Analysis and Radio Coverage Maps dated December 4, 2009 (6) Coverage maps dated December 4, 2009 (7) Q&A Session 2 Follow-Up: PAWM Proposal Update (includes the updated pricing) dated December 4, 2009 (8) System Drawings Exhibit B Motorola's Response to the RFP Exhibit C Motorola "Software License Agreement" Exhibit D Payment Schedule as set forth in Section 8.2A of the RFP Exhibit E Insurance Requirements Exhibit F Insurance Certificate for the City of Plano, Texas Exhibit G Insurance Certificate for the City of Allen, Texas Exhibit H Insurance Certificate for the City of Wylie, Texas Exhibit I Insurance Certificate for the City of Murphy, Texas Exhibit J Affidavit of No Prohibited Interest Exhibit K Payment and Performance Bonds Exhibit L Enhanced System Support Statement of Work included in Motorola Response to the RFP Exhibit M "System Acceptance Certificate" Section 2 DEFINITIONS Capitalized terms used in this Agreement have the following meanings: 2.1. "Acceptance Tests" means those tests described in the Acceptance Test Plan. 2.2. "Beneficial Use" means when the Cities first use the System or a Subsystem for operational purposes (excluding training or testing). 2.3. "Confidential Information" means any information that is disclosed in written, graphic, verbal, or machine-recognizabte form, and is marked, designated, or identified at the time of disclosure as being confidential or proprietary; or if the information is in verbal form, it is identified as confidential at the time of disclosure and is confirmed in writing within thirty (30) days of the disclosure. Confidential Information does not include any information that: is or becomes publicly known through no wrongful act of the receiving Party; is already known to the receiving Party without restriction when it is disclosed; is or becomes, rightfully and without breach of this Agreement, in the receiving Party's possession without any Motorola.CSA.FINAL.1.10.05.revision.doc 1 563153.v1 obligation restricting disclosure; is independently developed by the receiving Party without breach of this Agreement; or is explicitly approved for release by written authorization of the disclosing Party or information that is required to be released as determined by a written decision from the Texas Attorney General. 2.4. "Contract Price" means the price for the System, excluding applicable sales or similar taxes and freight charges. 2.5. "Effective Date" means that date upon which the last Party executes this Agreement. 2.6. "Equipment" means the equipment that the Cities purchase from Motorola under this Agreement. Equipment that is part of the System is described in the Equipment List. 2.7. "Force Majeure" means an event, circumstance, or act of a third party that is beyond a Party's reasonable control and affects the geographical area in which the system is manufactured, staged, or installed (e.g., an act of God, an act of the public enemy, an act of a government entity, strikes or other labor disturbances, hurricanes, earthquakes, fires, floods, epidemics, embargoes, war, and riots). 2.8. "Infringement Claim" means a third party claim alleging that the Motorola or Non-Motorola Equipment or Software provided, sold or distributed by Motorola to the Cities infringes upon the third party's United States patent or copyright. 2.9. "Motorola Software" means Software that Motorola or its affiliated company owns. 2.10. "Non-Motorola Software" means Software provided or sold by Motorola to the Cities that another party owns. 2.11. "Open Source Software" (also called "freeware" or "shareware") means software that has its underlying source code freely available to evaluate, copy, and modify. 2.12. "Proprietary Rights" means the patents, patent applications, inventions, copyrights, trade secrets, trademarks, trade names, mask works, know-how, and other intellectual property rights in and to the Equipment and Software, including those created or produced by Motorola under this Agreement and any corrections, bug fixes, enhancements, updates or modifications to or derivative works from the Software whether made by Motorola or another party. 2.13. "Software" means the Motorola Software and Non-Motorola Software, in object code format that is furnished with the System or Equipment. 2.14. "Specifications" means the functionality and performance requirements that are described in the Technical and Implementation Documents. 2.15. "Subsystem" means a major part of the System that performs specific functions or operations. Subsystems are described in the Technical and Implementation Documents. 2.16. "System" means the Equipment, Software, and incidental hardware and materials that are combined together into an integrated system; the System is described in the Technical and Implementation Documents. 2.17. "System Acceptance" means the Acceptance Tests have been successfully completed. 2.18. "Warranty Period" means one (1) year from the date of System Acceptance or Beneficial Use, whichever occurs first. Section 3 SCOPE OF AGREEMENT, TERM AND DESIGNATION OF PROJECT MANAGER Motorola.CSA. FI NAL.1.10.05.revision.doc 2 563153.v1 3.1. SCOPE OF WORK. Motorola will p�ovide, install and test the System, and perform its other contractual responsibilities, all in accordance with this Agreement. The Cities will perform their contractual responsibilities in accordance with this Agreement. 3.2 SCHEDULE OF WORK. Motorola agrees to commence work immediately upon the execution of this Agreement, and to proceed diligently with said work in accordance with the Performance Schedule which provides that Motorola will achieve System Acceptance no later than December 31, 2010. 3.3. CHANGE ORDERS. Either Party may request changes within the general scope of this Agreement. If a requested change causes an increase or decrease in the cost or time required to perform this Agreement, the Parties will agree to an equitable adjustment of the Contract Price, Performance Schedule, or both, and will reflect the adjustment in a written change orde�. Neither Party is obligated to perform requested changes unless both Parties execute a written change order. All requests for change orders shall be made through the Project Manager. The individual City upon whose behalf the request for that change order is made shall be responsible for all additional costs and/or expenses associated with the change order. "Extra" work or "claims" invoiced as such which have not been issued as a duly executed, written change order by the appropriate City Manager, will not be authorized for payment. A duly executed written change order shall be preceded by a request to the City Manager to execute said change order. 3.4. TERM. Unless terminated in accordance with other provisions of this Agreement or extended by mutual agreement of the Parties, the term of this Agreement begins on the Effective Date and continues until the date of Final Project Acceptance or expiration of the Warranty Period, whichever occurs last. 3.5. ADDITIONAL EQUIPMENT OR SOFTWARE. During the term of this Agreement, the Cities may purchase additional Equipment and Software under Section 3.3. In addition, for three (3) years after the Effective Date, the Cities may order additional Equipment or Software if it is then available. Each order must refer to this Agreement and must specify the pricing and delivery terms. Notwithstanding any additional or contrary terms in the order, the applicable provisions of this Agreement (except for delivery, passage of title and risk of loss to Equipment, warranty commencement, and payment terms) will govern the purchase and sale of the additional Equipment or Software. The pricing will comply with Section 13.2.1YYY of the RFP, which provides for a firm percentage discount off of the current list price of the Equipment or Software. Payment is due upon delivery and acceptance by the Cities in accordance with the Texas Prompt Payment Act (Texas Government Code Section 2251. For Equipment and Software purchased under this Section prior to System Acceptance which is intended to be incorporated into the System, title, risk of loss, and warranty will be controlled by this Agreement. Concerning Equipment and Software purchased under this Section that is not intended to be incorporated into the System or is purchased after System Acceptance, title and risk of loss will pass upon delivery and warranty will commence upon delivery. Motorola will send the Cities an invoice as the additional Equipment is shipped or Software is licensed. Alternatively, the Cities may register with and place orders through Motorola Online ("MOL"), and this Agreement will be the "Underlying Agreement" for those MOL transactions rather than the MOL On-Line Terms and Conditions of Sale. MOL registration and other information may be found at http:/lwww.motorola.com/businessandqovernment/ and the MOL telephone number is (800) 814- 0601. 3.6. MAINTENANCE SERVICE. During the Warranty Period, Motorola will provide maintenance services for the Equipment and support for the Motorola Software and Non-Motorola Soffinrare pursuant to this Agreement, including the ESS Statement of Work. Those services and support are included in the Contract Price. If the Cities wish to purchase additional maintenance and support services for the Equipment during the Warranty Period, or any maintenance and support services for the Equipment after the Warranty Period, the description of and pricing for the services will be set forth in a separate document. If the Cities wish to purchase extended support for the Motorola Software or Non-Motorola Software after the Warranty Period, it may do so by ordering software subscription services as described in the Software Subscription section of the ESS Statement of Work. Unless otherwise agreed by the parties in writing, the terms and conditions applicable to those maintenance, support or software Motorola.CSA.FINAL.1.10.05.revision.doc 3 563153.v1 subscription services will be Motorola's standard Service Terms and Conditions, together with the appropriate statements of work. 3.7. MOTOROLA SOFTWARE. Any Motorola Software, including subsequent releases, is licensed to the Cities solely in accordance with the Software License Agreement. The Cities hereby accept and agree to abide by all of the terms and restrictions of the Software License Agreement. 3.8. NON-MOTOROLA SOFTWARE. Any Non-Motorola Software is licensed to the Cities in accordance with the standard license, terms, and restrictions of the copyright owner on the Effective Date unless the copyright owner has granted to Motorola the right to sublicense the Non-Motorola Software pursuant to the Software License Agreement, in which case it applies and the copyright owner will have all of Licensor's rights and protections under the Software License Agreement. Non-Motorola Software may include Open Source Software. Motorola represents that, to the best of their knowledge, the Cities' use of Non-Motorola Software as described and provided for in this Agreement is a legally authorized use of said software, which does not constitute an infringement. The Cities enter into this Agreement relying on this representation. 3.9. SUBSTITUTIONS. At no additional cost to the Cities, Motorola may substitute any Equipment, Software, or services to be provided by Motorola, if the substitute meets or exceeds the Specifications and is of equivalent or better quality to the Cities. Any substitution will be reflected in a change order. 3.10 PROJECT MANAGER. The Parties agree that the City of Plano Radio System Manager shall be the Project Manager for the duration of the project which is the subject of this Agreement. The Project Manager shall be the liaison between the Cities and Motorola and all communication between the Cities and Motorola shall be made by and through the Project Manager. The Project Manager shall be responsible for project management services and technical expertise required to assure completion of the Project. In this capacity, the Project Manager is responsible for the oversight and facilitation of the successful completion of the Project. Section 4 PERFORMANCE SCHEDULE AND PAYMENT AND PERFORMANCE BOND 4.1 The Parties will perform their respective responsibilities in accordance with the Performance Schedule, included in the Motorola Response to the RFP. By executing this Agreement, the Cities authorize Motorola to proceed with contract performance. 4.2 In the event this Agreement amount exceeds $25,000.00, a Payment bond in the amount of not less than one hundred percent (100%) of the Agreement amount conditioned upon the payment of all person supplying labor or furnishing materials pursuant to the Agreement is required upon a form a provided by the Cities. In the event this Agreement exceeds $100,000.00, a Performance Bond in the amount of not less than one hundred and fifteen percent (115%) of the Agreement amount, conditioned upon the faithful performance of the Agreement, is required upon a form provided by the Cities. The bonds are attached hereto and incorporated herein as Exhibit "K." Section 5 CONTRACT PRICE, PAYMENT, INVOICING AND INSURANCE 5.1. CONTRACT PRICE. The Contract Price in U.S. dollars is in an amount not to exceed $19,104,907.00. If applicable, a pricing summary is included with the Payment Schedule. Motorola has priced the services, Software, and Equipment as an integrated system. A reduction in Software or Equipment quantities, or services, may affect the overall Contract Price, including discounts if applicable. Each City shall be responsible for an amount not to exceed the following: City of Plano; $12,271,398.00 City of Allen: $3,564,589.00 City of Wylie: $2,370,359.00 Motorola.CSA.FINAL.1.10.05.revision.doc 4 563153.v1 City of Murphy: $898,560.00 5.2. INVOICING AND PAYMENT. Motorola will submit invoices separately to each City according to the Payment Schedule. Except for a payment that is due on the Effective Date, each City will make payments to Motorola in accordance with the Texas Prompt Payment Act (Texas Government Code Section 2251. Each City shall only be responsible for the individual charges/costs for their City and shall not be responsible for any charges/costs for another City Each City will make payments when due in the form of a wire transfer, check, or cashier's check from a U.S. financial institution. Each City will be invoiced for the percentage of the full installment payment amount equal to the percentage of the total Contract Price allocated to each in accordance with the Pricing Summary. For reference, the Federal Tax Identification Number for Motorola, Inc. is 36-1115800. 5.3 FREIGHT, TITLE, AND RISK OF LOSS. Title, care, custody, control and risk of loss of the non- subscriber Equipment will pass to the Cities upon complete installation of the Equipment at the sites. Title and risk of loss of subscriber equipment will pass to the Cities upon delivery. Title to Software will not pass to the Cities at any time. 5.4 INVOICING AND SHIPPING ADDRESSES. Invoices will be sent to each City at the address specified above. Software delivery shall be coordinated through the Project Manager. Storage, site delivery, and installation of the Infrastructure Equipment are the responsibility of Motorola until complete installation of the Equipment at the sites. Delivery and installation of any other Software and/or Equipment not specified in this section shall be coordinated through the Project Manager. Cities may change this information by giving written notice to Motorola. 5.5 INSURANCE AND CERTIFICATES OF INSURANCE. Motorola shall procure and maintain for the duration of the Agreement for the benefit of the Cities (listing each City, and its council members, officers, and employees as additional insureds on the general liability policy) insurance coverage as set forth in the Insurance Requirements marked as Exhibit "E" attached hereto and incorporated herein by reference. Motorola shall provide a signed insurance certificate for each City verifying that Motorola has obtained the required insurance coverage for each City immediately following the execution of this Agreement. Insurance Certificates for each City will be attached as follows: Exhibit "F" City of Plano, Texas Exhibit "G" City of Allen, Texas Exhibit "H" City of Wylie, Texas Exhibit "I" City of Murphy, Texas Section 6 SITES AND SITE CONDITIONS 6.1. ACCESS TO SITES. In addition to its responsibilities described elsewhere in this Agreement, the Cities will provide a designated project manager; all necessary construction and building permits, zoning variances, licenses, and any other approvals that are necessary to develop or use the sites; and access to the work sites as reasonably requested by Motorola so that it may perform its duties in accordance with the Performance Schedule and Statement of Work. If the Statement of Work so indicates, Motorola may assist the Cities in the local building permit process. Nothing contained in this paragraph shall be construed as the Cities' pre-approval or automatic approval of any type of permit or zoning application. Nor shall it be construed as the Cities waiver of its application and/or public hearing process. 6.2. SITE CONDITIONS. The Cities will ensure that all work sites it provides will be safe, secure, and in compliance with all applicable industry and OSHA standards. To the extent applicable and unless the Statement of Work states to the contrary, the Cities will ensure, to the extent possible, that these work sites have adequate: physical space; air conditioning and other environmental conditions; electrical power outlets, distribution and equipment; and telephone or other communication lines (including modem access and adequate interfacing networking capabilities), all for the installation, use and maintenance of the System. Before installing the Equipment or Software at a work site, Motorola will inspect the work site Motorola.CSA.FINAL.1.10.05.revision.doc 5 563153.v1 and advise the Cities of any apparent deficiencies or non-conformities with the requirements of this Section. This Agreement is predicated upon normal soil conditions as defined by the version of E.I.A. standard RS-222 in effect on the Effective Date. 6.3. SITE ISSUES. If a Party determines that the sites identified in the Technical and Implementation Documents are no longer available or desired, or if subsurface, structural, adverse environmental or latent conditions at any site differ from those indicated in the Technical and Implementation Documents, the Parties will promptly investigate the conditions and will select replacement sites or adjust the installation plans and specifications as necessary. If change in sites or adjustment to the installation plans and specifications causes a change in the cost or time to perform, the Parties will equitably amend the Contract Price, Performance Schedule, or both, by a change order. Section 7 TRAINING Any training to be provided by Motorola to the Cities will be described in the Statement of Work. The Cities will notify Motorola immediately if a date change for a scheduled training program is required. If Motorola incurs additional costs because the Cities reschedule a training program less than thirty (30) days before its scheduled start date, Motorola may recover these additional costs from the individual City requesting or receiving the training. Section 8 SYSTEM ACCEPTANCE 8.1. COMMENCEMENT OF ACCEPTANCE TESTING. Motorola will provide to the Cities at least ten (10) days notice before the Acceptance Tests commence. System testing will occur only in accordance with the Acceptance Test Plan. 8.2. SYSTEM ACCEPTANCE. System Acceptance will occur upon successful completion of all of the Acceptance Tests, whether it is part of the System or an individual subsystem. Upon System Acceptance, the Parties will memorialize this event by promptly executing a System Acceptance Certificate for the entire System, including individual subsystems. If the Cities believe the System has failed the completed Acceptance Tests, the Cities will provide to Motorola a written notice that includes the specific details of the failure. If the Cities do not provide to Motorola a failure notice within thirty (30) days after completion of the Acceptance Tests, System Acceptance will be deemed to have occurred as of the completion of the Acceptance Tests. Minor omissions or variances in the System that do not materially impair the operation of the System as a whole will not postpone System Acceptance but will be corrected according to a mutually agreed schedule. 8.3. BENEFICIAL USE. The Cities acknowledge that Motorola's ability to perform its implementation and testing responsibilities may be impeded if the Cities begin using the System before System Acceptance. Therefore, the Cities will not commence Beneficial Use before System Acceptance without Motorola's prior written authorization, which will not be unreasonably withheld. Motorola is not responsible for System performance deficiencies that occur during unauthorized Beneficial Use. Upon commencement of Beneficial Use, the Cities assume responsibility for the use and operation of the System. The term Beneficial Use will not include the use of any subscriber radios shipped under this Agreement and put into use on the current Cities' systems. 8.4 FINAL PROJECT ACCEPTANCE. Final Project Acceptance will occur after System Acceptance when all deliverables and other work have been completed. When Final Project Acceptance occurs, the Parties will promptly memorialize this final event by so indicating on the System Acceptance Certificate. Section 9 REPRESENTATIONS AND WARRANTIES 9.1. SYSTEM FUNCTIONALITY. Motorola represents that the System will perform in accordance with the Specifications in all material respects. Upon System Acceptance this System functionality representation is fulfilled. Motorola is not responsible for System performance deficiencies that are caused by ancillary equipment or software not furnished by Motorola pursuant to this Agreement which is attached to or used in connection with the System or for reasons or parties beyond Motorola's control, Motorola.CSA.FINAL.1.10.05.revision.doc g 563153.v1 such as natural causes; the construction of a building that adversely affects the microwave path reliability or radio frequency (RF) coverage; the addition of frequencies at System sites that cause RF interference or intermodulatio�; or the Cities change to load usage or configuration outside the Specifications. If the Cities provide a notice under Section 8.2 that they believe the System has failed an Acceptance Test, then Motorola shall address and remedy the failure as soon as practicable and at no additional cost to the Cities. Such remedy shall include all equipment, systems, and services necessary to pass the Acceptance Test. When Motorola believes it has successfully remedied the failure, Motorola shall so notify the Cities in a writing that specifies the measures taken by Motorola to remedy the failure. Upon the receipt of such notice by Motorola, the Parties shall repeat the portion of the previously failed Acceptance Test, unless the test that fails is the 30 day reliability test discussed in the RFP, in which case the full test will be repeated in the event of a major failure as defined in the RFP. The re-testing shall commence as promptly as practical on a date reasonably acceptable to both the Cities and Motorola. Execution of the appropriate "System Acceptance Certificate" will constitute acceptance by the Cities. 9.2. EQUIPMENT WARRANTY. During the Warranty Period, Motorola warrants that the Equipment under normal use and service will be free from material defects in materials and workmanship. If System Acceptance is delayed beyond six (6) months after shipment of the infrastructure Equipment (excluding expressly the shipment of any subscriber radios) by events or causes within the Cities' control, this warranty expires eighteen (18) months after the shipment of the Equipment. 9.3. MOTOROLA SOFTWARE WARRANTY. Unless otherwise stated in the Software License Agreement, during the Warranty Period, Motorola warrants the Motorola Software in accordance with the terms of the Software License Agreement and the provisions of this Section 9 that are applicable to the Motorola Software. If System Acceptance is delayed beyond six (6) months after shipment of the Motorola Software (excluding any Software shipped with subscriber radios) by events or causes within the Cities control, this warranty expires eighteen (18) months after the shipment of the Motorola Software. 9.4. EXCLUSIONS TO EQUIPMENT AND MOTOROLA SOFTWARE WARRANTIES. These warranties do not apply to: (i) defects or damage resulting from: use of the Equipment or Motorola Software in other than its normal, customary, and authorized manner; accident, liquids, neglect, or acts of God; testing, maintenance, disassembly, repair, installation, alteration, modification, or adjustment not provided or authorized in writing by Motorola; the Cities' failure to comply with all applicable industry and OSHA standards; (ii) breakage of or damage to antennas unless caused directly by defects in material or workmanship; (iii) Equipment that has had the serial number removed or made illegible; (iv) batteries (because they carry their own separate limited warranty) or consumables; (v) freight costs to ship Equipment to the repair depot; (vi) scratches or other cosmetic damage to Equipment surfaces that does not affect the operation of the Equipment; and (vii) normal or customary wear and tear. 9.5. WARRANTY CLAIMS. To assert a warranty claim, the Cities must notify Motorola in writing of the claim before the expiration of the Warranty Period. Upon receipt of this notice, Motorola will (at its option and at no additional charge to the Cities) perform one of the following three options: repair the defective Equipment or Motorola Software, replace it with the same or equivalent product, or refund the price of the defective Equipment or Motorola Software. That action will be the full extent of Motorola's liability for the warranty claim. Repaired or replaced product is warranted for the balance of the original applicable warranty period. All replaced products or parts will become the property of Motorola. 9.6. ORIGINAL END USER IS COVERED. These express limited warranties are extended by Motorola to the original user purchasing the System (including all Cities) for commercial, industrial, or governmental use only, and are not assignable or transferable. 9.7. DISCLAIMER OF OTHER WARRANTIES. THESE WARRANTIES ARE THE COMPLETE WARRANTIES FOR THE EQUIPMENT AND MOTOROLA SOFTWARE PROVIDED UNDER THIS AGREEMENT AND ARE GIVEN IN LIEU OF ALL OTHER WARRANTIES. MOTOROLA DISCLAIMS ALL OTHER WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Motorola.CSA. FI NAL.1.10.05. revision.doc 7 563153.v1 Section 10 DELAYS 10.1. FORCE MAJEURE. Neither Party will be liable for its non-performance or delayed performance if caused by a Force Majeure. A Party that becomes aware of a Force Majeure that will significantly delay performance will notify the other Party promptly (but in no event later than fifteen days) after it discovers the Force Majeure. If a Force Majeure occurs, the Parties will execute a change order to extend the Performance Schedule for a time period that is reasonable under the circumstances. 10.2. PERFORMANCE SCHEDULE DELAYS CAUSED BY THE CITIES. If the Cities (including their other contractors) delay the Performance Schedule, it will make the promised payments according to the Payment Schedule as if no delay occurred; and the Parties will execute a change order to extend the Performance Schedule and, if requested, compensate Motorola for all reasonable charges incurred because of the delay. Delay charges may include costs incurred by Motorola or its subcontractors fo� additional extension of the warranties; suspending and re-mobilizing the work; and preparing and implementing an alternative implementation plan. Delay charges shall not include freight, travel, additional engineering, project management or handling of Equipment or standby time. If the Parties agree that the System must be redesigned as a result of a delay, then such engineering costs to redesign the System will be included. Section 11 DISPUTES 11.1 In the event of a dispute regarding any aspect of this Agreement, the Parties shall refer the dispute to outside non-binding mediation for resolution prior to engaging in litigation. All Parties shall share equally in the costs of a certified mediator and each Party shall be responsible for their own attorney fees. Any mediation between the Parties shall be in Texas. 11.2 Disputes among the Cities that are independent of any dispute with Motorola shall be resolved according to the terms and provision of the interlocal agreement passed by resolution and adopted by each of the Cities titled: AGREEMENT BETWEEN THE CITY OF PLANO, TEXAS, AND THE CITY OF ALLEN, TEXAS, THE CITY OF WYLIE, TEXAS AND THE CITY OF MURPHY, TEXAS FOR JOINT RADIO COMMUNCIATIONS SYSTEM. Section 12 DEFAULT AND TERMINATION 12.1 DEFAULT BY A PARTY. If either Party fails to perform a material obligation under this Agreement, the other Party may consider the non-performing Party to be in default (unless a Force Majeure causes the failure) and may assert a default claim by giving the non-performing Party a written and detailed notice of default. Except for a default by the Cities for failing to pay any amount when due under this Agreement which must be cured immediately, the defaulting Party will have thirty (30) days after receipt of the notice of default to either cure the default or, if the default is not curable within thirty (30) days, provide a written cure plan. The defaulting Party will begin implementing the cure plan immediately after receipt of notice by the other Party that it approves the plan. During any period of default by Motorola, the Cities will be relieved of any obligation to make any payment associated with the Motorola default. If the Cities are the defaulting Party, Motorola may stop work on the project until it approves the Cities' cure plan. 12.2 TERMINATION BY CITIES. Unilateral termination by any individual City is prohibited. 12.3. FAILURE TO CURE. If a defaulting Party fails to cure the default as provided above in Section 12.1, unless otherwise agreed in writing, the non-defaulting Party may terminate any unfulfilled portion of this Agreement, subject to Sections 11.1 and 12.2 herein. In the event of termination for default, the defaulting Party will promptly return to the non-defaulting Party any of its Confidential Information. If the Cities are the non-defaulting Party, terminate this Agreement as permitted by this Section, and complete the System through a third Party, Customer may recover from Motorola reasonable costs incurred to complete the System to a capability not exceeding that specified in this Agreement less the unpaid portion of the Contract Price. To the extent required by law, the Cities will take reasonable actions to mitigate their respective damages and provide Motorola with detailed invoices substantiating the charges. Motorola.CSA. FI NAL.1.10.05.revision.doc g 563153.v1 SECTION 13 INDEMNIFICATION 13.1. GENERAL INDEMNITY BY MOTOROLA. Motorola shall release, defend, indemnify and hold harmless the Cities and their officers, agents and employees from and against all damages, injuries (including death), claims, property damages (including loss of use), losses, demands, suits, judgments and costs, including reasonable attorney's fees and expenses, in any way arising out of, related to, or resulting from and to the extent caused by the negligent performance of the work or caused by the negligent act or omission or intentional acts of Motorola, its officers, agents, employees, subcontractors, licensees, invitees or any third parties for whom Motorola is legally responsible (hereinafter "claims"). In their sole discretion, Cities shall have the right to reasonably approve defense counsel to be retained by Motorola in fulfilling its obligation hereunder to defend and indemnify the Cities, unless such right is expressly waived by Cities in writing. Cities reserve the right to provide a portion or all of their own defense; however, Cities are under no obligation to do so. Any such action by Cities is not to be construed as a waiver of Motorola's obligation to indemnify Cities pursuant to this contract. Motorola shall retain defense counsel approved by Cities within seven (7) business days of the Cities written notice that they are invoking their right to indemnification under this Agreement. If Motorola fails to retain counsel within such time period and after providing reasonable notice, Cities shall have the right to retain defense counsel on their own behalf, and Motorola shall be liable for all costs incurred by Cities. 13.2. PATENT AND COPYRIGHT INFRINGEMENT. 13.2.1. Motorola will defend, indemnify and hold harmless at its expense any claim/suit brought against the Cities to the extent it is based on an Infringement Claim, and Motorola will indemnify the Cities for those costs and damages finally awarded against the Cities for an Infringement Claim. Motorola's duties to defend and indemnify are conditioned upon: the Cities promptly notifying Motorola in writing of the Infringement Claim; Motorola having sole control of the defense of the claim/suit and all negotiations for its settlement or compromise; and the Cities providing to Motorola cooperation and, if requested by Motorola, reasonable assistance in the defense of the Infringement Claim. In addition to Motorola's obligation to defend, and subject to the same conditions, Motorola will pay all damages finally awarded against the Cities by a court of competent jurisdiction for an Infringement Claim or agreed to, in writing, by Motorola in settlement of an Infringement Claim. 13.2.2. If an Infringement Claim occurs, or in Motorola's opinion is likely to occur, Motorola shall, at its expense: (a) procure for the Cities the right to continue using the Product; (b) replace or modify the Product so that it becomes non-infringing while providing functionally equivalent performance; or (c) accept the return of the Product and grant the Cities a credit for the Product, less a reasonable charge for depreciation. The depreciation amount will be calculated based upon generally accepted accounting standards. Motorola will proceed under Subsection (c) above only if Subsections (a) and (b) prove to be commercially unreasonable. 13.2.3. Motorola will have no duty to defend or indemnify for any Infringement Claim that is based upon: (a) the combination of the Equipment, Motorola Software or Non-Motorola Software with any software, apparatus or device not furnished by Motorola; (b) the use of ancillary equipment or soffinrare not furnished by Motorola and that is attached to or used in connection with the Equipment, Motorola Software or Non-Motorola Software; (c) Equipment, Motorola Software or Non-Motorola Software designed or manufactured in accordance with the Cities' designs, specifications, guidelines or instructions, if the alleged infringement would not have occurred without such designs, specifications, guidelines or instructions; (d) a modification of the Equipment, Motorola Software or Non-Motorola Software by a party other than Motorola; (e) use of the Equipment, Motorola Software or Non-Motorola Software in a manner for which the Equipment, Motorola Software or Non-Motorola Software was not designed or that is inconsistent with the terms of this Agreement; or (f) the failure by the Cities to install an enhancement release to the Motorola Software that is intended to correct the claimed infringement. In no event will Motorola's liability resulting from its indemnity obligation to the Cities extend in any way to royalties payable on a per use basis or or Cities' revenues, or any royalty basis other than a reasonable Motorola.CSA.FINAL.1.10.05.revision.doc g 563153.v1 royalty based upon revenue derived by Motorola from the Cities from sales or license of the infringing Equipment, Motorola Software or Non-Motorola Software. 13.2.4. This Section 13 provides the Cities' sole and exclusive remedies and Motorola's entire liability in the event of an Infringement Claim. The Cities do not have a right to recover and Motorola has no obligation to provide any other or further remedies, whether under another provision of this Agreement or any other legal theory or principle, in connection with an Infringement Claim. In addition, the rights and remedies provided in this Section 13 are subject to and limited by the restrictions set forth in Section 14. Section 14 LIMITATION OF LIABILITY Motorola and the Cities acknowledge that they have negotiated the Price (among other things) in consideration of their agreement to limit certain of Motorola's liabilities. Except for the obligations set forth is Section 13.2.1, in no event is Motorola or any of its suppliers or licensors liable for any indirect, special, exemplary, consequential or incidental damages (including lost profits, lost revenues and other economic losses), however caused and regardless of whether such damages are foreseeable or whether Motorola has been advised of their possibility. EXCEPT FOR A CLAIM FOR PERSONAL INJURY, LOSS OF LIFE, OR DAMAGE TO REAL OR TANGIBLE PROPERTY CAUSED IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY BY MOTOROLA, MOTOROLA'S TOTAL LIABILITY UNDER THIS AGREEMENT WILL BE LIMITED TO DIRECT DAMAGES NOT EXCEED ONE AND ONE-HALF TIMES THE TOTAL CONTRACT PRICE. Section 15 CONFIDENTIALITY AND PROPRIETARY RIGHTS 15.1. CONFIDENTIAL INFORMATION. During the term of this Agreement, the parties may provide each other with Confidential Information. Subject to any obligations of the Cities under Texas law including the Open Records laws, each Party will: maintain the confidentiality of the other Party's Confidential Information and not disclose it to any third party, except as authorized by the disclosing Party in writing or as required by a court of competent jurisdiction; restrict disclosure of the Confidential Information to its employees who have a"need to know" and not copy or reproduce the Confidential Information; take necessary and appropriate precautions to guard the confidentiality of the Confidential Information, including informing its employees who handle the Confidential Information that it is confidential and is not to be disclosed to others, but these precautions will be at least the same degree of care that the receiving Party applies to its own confidential information and will not be less than reasonable care; and use the Confidential Information only in furtherance of the performance of this Agreement. Confidential Information is and will at all times remain the property of the disclosing Party, and no grant of any proprietary rights in the Confidential Information is given or intended, including any express or implied license, other than the limited right of the recipient to use the Confidential Information in the manner and to the extent permitted by this Agreement. If an Open Records request is submitted to the Cities requesting documents marked by Motorola as confidential, the Cities will provide Motorola reasonable notice of the request, but Motorola will be required to take whatever steps are necessary under the Open Records Act to protect the documents. If the Attorney General rules pursuant to written determination that the confidential information is subject to disclosure, the Cities shall release such information. 15.2. PRESERVATION OF MOTOROLA'S PROPRIETARY RIGHTS. Motorola, the third party manufacturer of any Equipment, and the copyright owner of any Non-Motorola Software own and retain all of their respective Proprietary Rights in the Equipment and Software, and nothing in this Agreement is intended to restrict their Proprietary Rights. All intellectual property developed, originated, or prepared by Motorola in connection with providing to the Cities the Equipment, Software, or related services remain vested exclusively in Motorola, and this Agreement does not grant to the Cities any shared development rights of intellectual property. Except as explicitly provided in the Software License Agreement, Motorola does not grant to the Cities, either directly or by implication, estoppel, or otherwise, any right, title or interest in Motorola's Proprietary Rights. The Cities will not modify, disassemble, peel components, decompile, otherwise reverse engineer or attempt to reverse engineer, derive source code or create derivative works from, adapt, translate, merge with other software, reproduce, distribute, sublicense, sell Motorola.CSA.FINAL.1.10.05.revision.doc p 563153.v1 or export the Software, or permit or encourage any third pa�ty to do so. The preceding sentence does not apply to Open Source Software which is governed by the standard license of the copyright owner. If an Open Records request is submitted to the Cities requesting documents marked by Motorola as proprietary, the Cities will provide Motorola reasonable notice of the request, but Motorola will be required to take whatever steps are necessary under the Open Records Act to protect the documents. If the Attorney General rules pursuant to written determination that the proprietary information is subject to disclosure, the Cities shall release such information. Section 16 GENERAL 16.1. TAXES. The Cities have represented that they are exempt from federal manufacturer's excise, state sales tax and state property taxes. Based upon such representation, Motorola has not included any taxes in the Contract Price. Motorola will be solely responsible for reporting taxes on its income or net worth. 16.2. ASSIGNABILITY AND SUBCONTRACTING. Motorola may subcontract any of the work, but subcontracting will not relieve Motorola of its duties under this Agreement. Except as provided herein, neither Party may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other Party, which consent will not be unreasonably withheld. Any attempted assignment, delegation, or transfer without the necessary consent will be void. Notwithstanding the foregoing, Motorola may assign this Agreement to any of its affiliates to the extent Motorola owns at least 50% of the affiliate or its right to receive payment without the prior consent of the Cities. In addition, in the event Motorola separates one or more of its businesses (each a"Separated Business"), whether by way of a sale, establishment of a joint venture, spin-off or otherwise (each a"Separation EvenY'), Motorola may, without the prior written consent of the other Party and at no additional cost to Motorola, assign this Agreement such that it will continue to benefit the Separated Business and its affiliates (and Motorola and its affiliates, to the extent applicable) following the Separation Event provided that the Government and Public Safety business which submitted the RFP response is included in the Separated Business. 16.3 SUCCESSOR AND ASSIGNS. The Cities and Motorola, and their partners, assigns, successors, subcontractors, executors, officers, agents, employees, representatives, and administrators are herby bound to the terms and conditions of this Agreement. 16.4 WAIVER. Failure or delay by either Party to exercise a right or power under this Agreement will not be a waiver of the right or power. For a waiver of a right or power to be effective, it must be in a writing signed by the waiving Party. An effective waiver of a right or power will not be construed as either a future or continuing waiver of that same right or power, or the waiver of any other right or power. 16.5. SEVERABI�ITY. If a court of competent jurisdiction renders any part of this Agreement invalid or unenforceable, that part will be severed and the remainder of this Agreement will continue in full force and effect. 16.6. INDEPENDENT CONTRACTORS. Each Party will perform its duties under this Agreement as an independent contractor. The Parties and their personnel will not be considered to be employees or agents of the other Party. Nothing in this Agreement will be interpreted as granting either Party the right or authority to make commitments of any kind for the other. This Agreement will not constitute, create, or be interpreted as a joint venture, partnership or formal business organization of any kind. 16.7. HEADINGS AND SECTION REFERENCES. The section headings in this Agreement are inserted only for convenience and are not to be construed as part of this Agreement or as a limitation of the scope of the particular section to which the heading refers. This Agreement will be fairly interpreted in accordance with its terms and conditions and not for or against either Party. 16.8. GOVERNING LAW. This entire Agreement is performable in Collin County, Denton County and Rockwall County, Texas and the venue for any action related directly or indirectly, to this Agreement or in Motorola.CSA.FINAL.1.10.05.revision.doc 563153. v1 any manner connected therewith shall be in Collin County, Texas, and this Agreement shall be construed under the laws of the State of Texas. 16.9. ENTIRE AGREEMENT. This Agreement, including all Exhibits, constitutes the entire agreement of the Parties regarding the subject matter of the Agreement and supersedes all previous agreements, proposals, and understandings, whether written or oral, relating to this subject matter. This Agreement may be amended or modified only by a written instrument signed by authorized representatives of both Parties. The preprinted terms and conditions found on any the Cities purchase order, acknowledgment or other form will not be considered an amendment or modification of this Agreement, even if a representative of each Party signs that document. 16.10. NOTICES. Notices required under this Agreement to be given by one Party to the other must be in writing and either personally delivered or sent to the address shown below by certified mail, return receipt requested and postage prepaid (or by a recognized courier service, such as Federal Express, UPS, or DHL), or by facsimile with correct answerback received, and will be effective upon receipt: Motorola, Inc. Attn: Commercial Law Dept. 6450 Sequence Drive San Diego, CA 92121 fax: 858 404-2594 City of Wylie Attn: Chief Randy Corbin 2000 Highway 78 North Wylie, Texas 75098 Fax: With a copy to: Attn: Courtney Kuykendall Abernathy, Roeder, Boyd Joplin P.C. 1700 Redbud Blvd. Suite 300 McKinney, Texas 75069 Fax: 214-544-4044 16.11. COMPLIANCE WITH APPLICABLE LAWS. Each Party will comply with all applicable federal, state, and local laws, regulations and rules concerning the performance of this Agreement or use of the System. The Cities will obtain and comply with all Federal Communications Commission ("FCC") licenses and authorizations required for the installation, operation and use of the System before the scheduled installation of the Equipment. Although Motorola might assist the Cities in the preparation of its FCC license applications, neither Motorola nor any of its employees is an agent or representative of the Cities in FCC or other matters. 16.12. AUTHORITY TO EXECUTE AGREEMENT. Each Party represents that it has obtained all necessary approvals, consents and authorizations to enter into this Agreement and to perform its duties under this Agreement; the person executing this Agreement on its behalf has the authority to do so; upon execution and delivery of this Agreement by the Parties, it is a valid and binding contract, enforceable in accordance with its terms; and the execution, delivery, and performance of this Agreement does not violate any bylaw, charter, regulation, law or any other governing authority of the Party. 16.13. SURVIVAL OF TERMS. The following provisions will survive the expiration or termination of this Agreement for any reason: Section 3.6 (Motorola Software); Section 3.7 (Non-Motorola Software); if any payment obligations exist, Sections 5.1 and 5.2 (Contract Price and Invoicing and Payment); Subsection 9.7 (Disclaimer of Implied Warranties); Section 11 (Disputes); Section 14 (Limitation of Liability); and Section 15 (Confidentiality and Proprietary Rights); and all of the General provisions in Section 16. Motorola.CSA. FI NAL.1.10.05. revision.doc 2 563153.v1 16.14 AUDIT: The Cities reserve the right to audit the records and performance of Motorola during the term of the Agreement and for three years thereafter. The inspection will be limited to the verification of shipment to invoice quantities and shipment receipts. 16.15 SOVEREIGN IMMUNITY. The parties agree that the Cities have not waived their sovereign immunity by entering into and performing its obligations under this Agreement. 16.16 NO THIRD PARTY BENEFICIARIES. Nothing in this Agreement shall be construed to create any right in any third party not a signatory to this Agreement, and the parties do not intend to create any third party beneficiaries by entering into this Agreement. 16.17 APPROPRIATION OF FUNDS. Funds are not presently budgeted for the Cities performance under this Agreement beyond the end of the Customer's 2009-2010 fiscal year. The Cities will give Motorola sixty (60) days written notice if funds for Cities' performance are not budgeted to continue beyond that time. To the extent the Cities have provided the notice required above, the Cities shall not have liability for payment of any money for services performed after the end of Customer's 2009-2010 fiscal year unless and until such funds are budgeted. The Parties hereby enter into this Agreement as of the Effective Date. Motorola, Inc. City of Plano, Texas By: By: Name: Name: Title: Title: Date: Date: City of Allen, Texas City of Murphy, Texas By: By: Name: Name: Title: Title: Date: Date: City of Wylie, Texas By: Mindy Manson, City Manager Date: Motorola.CSA.FINAL.1.10.05.revision.doc 3 563153.v1