SUPPLEMENTAL LOCAL ADDENDUM TO
PIGGYBACK OF CINTAS CORPORATION NO. 2 CONTRACT #222886
WITH THE CITY OF ROSEVILLE (“Local Addendum”)
APPENDIX A
Inserted: Price sheet (Roseville), Price sheet Omnia Contract (Tucson) Item Description Price LOCAL RATES
15 Service Charge $0.000
106 Service Charge $0.000
125 Make Up Charge Per Garment Local Pricing LOCAL RATE: $1.75 Minimum Stop Charge $35.000
7329 Non-Standard Special Cut - Non-FRC $0.160 (Size Premium Charge) 2 Uniform Advantage Local Pricing $.07
13 Premium Uniform Advantage Local Pricing $.07
14 Emblem Advantage Local Pricing $.05
7074 Prep (Makeup) Advantage Local Pricing $.05
Prep charges per shirt, coveralls and jacket for
removal and reapplication of patches & emblems
to garment based on size, color change, or from
short sleeve to long sleeve garment permitted
one-time per year per City employee.
$ 1.25
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 Buyback of Non-Standard Garments Customer has ordered from Company a garment rental service requiring embroidered garments that may not be standard to Company’s normal rental product line. Those non-standard products will be designated as such under-Garment Description. In the event Customer deletes a non-standard product, alters the design of the non-standard product, fails to renew the Agreement, or terminates the Agreement for any reason other than documented quality of service reasons which are not cured, Customer agrees to buy back all remaining non-standard products allocated to Customer that the Company has in service and out of service at the then current Loss/Damage Replacement Values.
If this agreement is cancelled for convenience in the first twelve months of the term, Customer shall pay as termination charges equal to 50 weeks of rental service.
If this agreement is cancelled for convenience in months thirteen (13) through eighteen (18) of the term, Customer shall pay as termination charges equal to 36 weeks of rental service.
If this agreement is cancelled for convenience in months nineteen (19) through twenty-four (24) of the term, Customer shall pay as termination charges equal to 23 weeks of rental service.
If this agreement is cancelled for convenience after 24 months of service, Customer shall pay as termination charges of 10 weeks of rental service.
Customer shall also be responsible to return all of the Merchandise allocated to such Customer locations terminating this Agreement at the then current Loss/Damage Replacement Values and for any unpaid charges on Customer’s account prior to termination.
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 920 Milliken Road
Spartanburg, SC 29861
800-334-4842
October 25, 2021
Jay Skie
Director of Protective Apparel
Cintas Corporation
6800 Cintas Blvd
Mason OH 45040
Dear Mr. Skie,
Westex by Milliken guarantees the flame resistance of Westex ShieldCXP ™ fabrics for the life of the garment when proper care and maintenance procedures are followed.
The Westex ShieldCXP™ Care and Maintenance Guide is included for your review.
Sincerely,
Chris Romansky
Product Portfolio Manager
Westex by Milliken
864.556.2921
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 920 Milliken Road
Spartanburg, SC 29306 WESTEX.COM
800.334.4842
December 9, 2021
Jay Skie
Director of Protective Apparel
Cintas Corporation
6800 Cintas Blvd
Mason, OH 45040
Westex guarantees the flame resistance of UltraSoft®, Indura®, UltraSoft AC® and Westex® DH fabrics for the life of the garment when proper care and maintenance procedures are followed.
Westex’ Care, Use and Maintenance Guides are included for your review. Furthermore, any guarantee made to Cintas can be passed through to their customers.
Best regards,
Josh Moody
Director, Product Management
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 6501 Mall Boulevard
P. O. Box 289
Union City, GA 30291
TEL: (770) 969 – 1000
FAX: (770) 969 – 6846
www.tencatefabrics.com
October 26, 2021
Jay Skie
Director of Protective Apparel
Cintas Corporation
6800 Cintas Blvd, Mason, OH 45040
Dear Mr. Skie,
TenCate Protective Fabrics, the world's leading provider of inherently flame-retardant products, guarantees that our TecaSafe® One, TecaSafe® Plus Stretch, TechT5™, and Omniweave™ Nomex® IIIA fabrics are inherently flame resistant as sold. Our products are third-party certified by UL, LLC to be compliant with NFPA 2112:2018, which requires testing according to ASTM D6413:2015 before and after 100 industrial launderings. Please see additional certifications below:
Best regards,
Chris Morrison
Senior Manager of Technical Services and Quality Assurance Style NFPA 2112 CGSB 155.20 NFPA 70E
Omniweave™ 450 Yes Yes HRC 1
Omniweave™ 600 Yes Yes HRC 1
Omniweave™ 750 Yes Yes HRC 1
TecaSafe® One Yes Yes HRC 2
TecaSafe® Plus Stretch Yes Yes HRC 2
TechT4™ No No HRC 1
TechT5™ Yes Yes HRC 1
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 This statement is based on our current level of knowledge and covers commercial products as supplied by DuPont at the date of issue. Since conditions of use are outside the Company's control, DuPont makes no warranties, express or implied, and assumes no liability in connection with any use of this information.
DuPont™ the DuPont Oval logo and all products denoted with ® or ™ are trademarks or registered trademarks of DuPont de Nemours or its affiliates
200 Powder Mill Road
Wilmington, DE 19803
October 26, 2021
Jay Skie
Director of Protective Apparel
Cintas Corporation
6800 Cintas Blvd | Mason, Ohio 45040
Re: Shelf Life of NOMEX® Fiber
Dear Customer:
DuPont does not specify a shelf life for NOMEX® meta-aramid fiber. NOMEX® fiber, when properly stored, maintains its inherent flame resistance and other chemical and mechanical properties. Proper storage includes protecting the fiber from exposure to ultraviolet light (sunlight) and storing the fiber in a clean, dry environment in the original shipping package. The finishing agents may face the effects of soak-in and/or evaporation after long periods of storage. This influence will be minimized if the fibers are kept within their original compressed packages and stored according to the proper conditions.
DuPont can only make statements directed towards the stability of the chemical and mechanical properties of NOMEX® brand fiber supplied by DuPont and not toward the service life of components and finished products that DuPont does not manufacture. The service life of any finished product, including the component NOMEX® brand fiber, may depend on many factors such as the service life of the other component materials, product design, product manufacturing process, and care and maintenance of the finished product.
Sincerely,
Deborah J. Saunders
DuPont™ Nomex® Global Product Steward
Phone: 302-287-0463
Email: [email protected]
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 This statement is based on our current level of knowledge and covers commercial products as supplied by DuPont at the date of issue. Since conditions of use are outside the Company's control, DuPont makes no warranties, express or implied, and assumes no liability in connection with any use of this information.
DuPont™ the DuPont Oval logo and all products denoted with ® or ™ are trademarks or registered trademarks of DuPont de Nemours or its affiliates
200 Powder Mill Road
Wilmington, DE 19803
October 26, 2021
Jay Skie
Director of Protective Apparel
Cintas Corporation
6800 Cintas Blvd | Mason, Ohio 45040
Re: Shelf Life of NOMEX® Fiber
Dear Customer:
DuPont does not specify a shelf life for NOMEX® meta-aramid fiber. NOMEX® fiber, when properly stored, maintains its inherent flame resistance and other chemical and mechanical properties. Proper storage includes protecting the fiber from exposure to ultraviolet light (sunlight) and storing the fiber in a clean, dry environment in the original shipping package. The finishing agents may face the effects of soak-in and/or evaporation after long periods of storage. This influence will be minimized if the fibers are kept within their original compressed packages and stored according to the proper conditions.
DuPont can only make statements directed towards the stability of the chemical and mechanical properties of NOMEX® brand fiber supplied by DuPont and not toward the service life of components and finished products that DuPont does not manufacture. The service life of any finished product, including the component NOMEX® brand fiber, may depend on many factors such as the service life of the other component materials, product design, product manufacturing process, and care and maintenance of the finished product.
Sincerely,
Deborah J. Saunders
DuPont™ Nomex® Global Product Steward
Phone: 302-287-0463
Email: [email protected]
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 1 Plaza Circle – Trion, GA 30753 – Phone (706) 734-4920- Email- [email protected] October 22, 2021
Mr. Jay Skie
Director of Protective Apparel
Cintas Corp.
6800 Cintas Blvd.
Mason, OH 45040
Dear Jay:
Mount Vernon Mills produces a line of Flame Resistant Fabrics that meet the requirements of industry standards such as, ASTM 1506, NFPA 70E, NFPA 2112, EN ISO 11611, and EN ISO 11612. We guarantee the flame resistance of Mount Vernon FR™ flame resistant fabrics for the useful life of the garment provided that the following care instructions are followed. Machine washing 160º F max.
Use of normal commercial detergents, as determined by industry standard. No chlorine or peroxide bleach.
Use of soft water.
No use of fabric softeners or starch.
We represent and warrant that our guarantee is not subject to any restrictions, limitations, disclaimers, or any other constraints.
Furthermore, any guarantee made to Cintas can be passed through to its customers.
Regards,
Mike Woods
Vice President
FR Fabric Sales
Mount Vernon Mills, Inc.
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 November 17, 2021
Jay Skie
Director of Protective Apparel
Cintas Corporation
6800 Cintas Blvd
Mason, Ohio 45040
Dear Jay Skie
PyroSafe by antex guarantees the flame resistance of all PyroSafe by antex fabrics for the life of the garment when proper care and maintenance procedures are followed. Furthermore, any guarantee made to Cintas can be passed through to their customers.
Sincerely,
Dennis James
Manager PyroSafe by antex
908 421 0524
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 City of Roseville Contract Purchase Agreement APPENDIX B Appendix B includes: Cintas Contract# 222886 “Rental of Uniforms, Floor Mats, Mops, Towels, and Related Services.” (Note: Portions are omitted from the attached for convenience purposes only, and the full document and all of its parts are incorporated herein by this reference.) DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340
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SUPPLEMENTAL LOCAL ADDENDUM TO
PIGGYBACK OF CINTAS CORPORATION NO. 2 CONTRACT #222886
WITH THE CITY OF ROSEVILLE (“Local Addendum”)
APPENDIX C
Customer Service Structure
At Cintas, we pride ourselves on being the best uniform and service solutions provider and every one of our 31,000 partners (employees) is dedicated to Customer Satisfaction. But ultimately, our success is measured by your happiness with our service and attention to your needs. In the first year, we will send out a quarterly survey to benchmark our progress in completely satisfying your needs. We will also schedule annual reviews to meet live and ensure we are providing the most secure and efficient solution for your hospital.
For every one of our customers we have a team of people making sure you remain a satisfied Cintas customer. Let us take a minute to describe the roles of each of these individuals.
Major Account Manager (Amanda Smith)
This role was created to better serve our government customers. The Major Account Manager is responsible for upper-level communication with the customer and opportunity development. The Major Account Manager coordinates program implementation and is the primary field contact for your account. Working with other Cintas professionals, the Major Account Manager will set the direction for the team and ensure the highest quality service and program support.
General Manager (Phil Adamson)
The General Manager of each local Cintas Office is responsible for the goodwill of their location’s accounts. They are the local point of contact for any questions, concerns, changes or issues your locations might need assistance with. They assure that service is provided to each location in accordance to your agreement.
Service Managers (TBD)
A dedicated Service Manager will be assigned to manage day to day operations with regards to uniforms and floor mat services. If any issues are evident, this service manager can be contacted directly to resolve. If the Service Manager is not available, the General Manager will be available to resolve the issue. Our Sales Service Representatives report directly to the Service Manager to provide our customers with local account management and the highest quality of service.
Sales and Service Representatives (SSR) (TBD)
Service Representatives are the liaison between your individual locations and Cintas’ local office. Our Service Representatives are the service experts on your individual locations. They are able to answer questions or service concerns. These partners can help address any immediate concerns Local Customer Service Team
Cintas provides World Class Customer Service at each of our locations. Our normal hours of operation are 7:00 AM-5:00 PM Monday- Friday. In addition, we offer a 24-hour customer service hotline via email or 1-800 Cintas-1.
Emails and voicemails are dispatched to local service centers and responded to within 24 hours.
Handling Customer Requests
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 Customer Service
Cintas is committed to providing exceptional service in every step of our process and with each Cintas partner that you interact with. To provide ongoing service, we have developed a Customer Request System (CRF) that is in place at each of our facilities. The purpose of CRF is to document and ensure that each customer request is handled properly. The CRF system consists of four parts.
1. Customer call
a. All customer calls are welcomed and documented in our system
2. Plan of action to properly address the customer’s concern a. On the first call, an immediate plan of action is agreed upon between the customer and a fulltime Cintas Customer Service Representative.
3. Response and resolution
a. You can be assured of a quick and timely response from our team.
4. Follow up
a. Cintas is committed to providing world class service to all your employees Implementation & Transition
Cintas will develop a roll out plan that meets the needs of each facility affiliated with this RFB. Cintas is committed to implementing a program that is seamless and free of any errors. We are committed to providing the highest level of service to your agency.
Below is an overview that will describe the program that we employ to ensure a smooth transition with the highest of service levels.
Site Assessments
Cintas will assess each of your facilities (as needed) to determine the exact inventory levels needed to maintain sufficient inventory needs.
Confirming Requirements
We use a detailed checklist to make sure we understand all your requirements for the initial implementation and discuss issues that may come up in the future. Cintas ensures that your locations will only receive services that have been authorized.
Program Rollout
The program rollout is managed by our local operations team and Service Manager assigned to your program. This individual will coordinate the communication to all your locations as they are complete for routing and delivery.
Follow-Up
After the program is installed at each of your locations, a series of follow-up steps takes place. Each location is contacted to ensure that they are satisfied with the installation and a variety of internal audits take place to confirm your requirements have been met. Quarterly meetings are set with the Major Account Manager to ensure your expectations are completely met on the program.
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 Work Plan
At contract initiation, a trained sales manager advises a potential customer of the garment program best suited for their applications. This includes special consideration for garments that may need to be segregated.
Soiled garments are retrieved from a customer facility by a Cintas SSR (Service Sales Representative) dedicated to servicing this customer. All soiled garments are segregated by classification (whites, colors, heavy soil, etc.) before they are returned to Cintas, thereby reducing the potential crosscontamination with other soiled garments. The trained Cintas production staff stages the soiled garments for processing in the soil separation area at the Cintas facility. During this process, customers with similar applications are staged together. All repairs and replacements are segregated, and after initial processing, sent to the stockroom for repair and/or replacement.
All wash chemicals used at Cintas for rental service garments are water-soluble and are specially formulated to address decontamination and removal of soil from garments. Fresh, processed water is used flushes and rinses. The final pH of the garment after processing is compatible with the pH range of human skin.
After washing, the clean garments are dried at increased temperatures in dryers. The drying process additionally inhibits microbial bio burden by removing the moisture required for microbial replication and removes them from the garments. Once dried, the garments are staged on auto or manual sortation machines, where they are sorted, inspected, and sent through the steam tunnel (290° - 310°F) for removal of wrinkles, producing a hygienically clean garment. The cleaned, segregated garments are staged, and executive garments are poly bagged by trained operators.
Cintas performs 100% inspection of the garments. At most Cintas facilities the inspection process is performed using patented inspection/workstations. The patented inspection/workstations are ergonomically designed so that a minimum of movement and physical exertion are required by the operator. These special stations were designed and patented by Cintas engineers especially for this application and are unparalleled in comfort, efficiency, and performance in the apparel industry.
Another quality inspection is completed by an employee from the Service Department on the customer’s behalf before the garments are returned to the customer. This is done by sampling enough garments to get a statistically valid result. A weekly report is generated with the results of this second audit for the General Manager and Plant Manager to review and make ongoing improvements as needed in the inspection process. This report indicates the number of garments that are repaired and replaced on a weekly basis to guarantee the highest quality.
The entire washing, drying, sorting, packaging, and delivery process is performed in strict accordance with Cintas standard operating procedures. Cintas laundry process facilities are designed for linear process flow to reduce cross-contamination of various customers’ soils and contamination of cleaned garments. The unloading of soiled garments is separated from the loading of clean garments. Clean and soiled storage containers are mobile, allowing for rotation, repair, replacement, and sanitization.
The interior and exterior of the garment processing facilities are monitored with a pro-active pest control program to provide clean, sanitized garment storage.
Cintas Corporation has always been and will continue to be a processed water-based laundry process. We are concerned about the release of volatile organic compounds into the atmosphere (Which are used in dry-cleaning) and the safety of our employees. Copies of the SDS (Safety Data Sheet) for each chemical used in the laundering of garments are available upon request.
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 TruCount™ System
Cintas TruCount™ system allows you to have complete confidence in your uniform program. With remote scanning abilities and on-site reporting functions, you are in full control. Cintas Service Professionals provide reports every week to ensure 100% accountability for every garment. Whether a garment was repaired or still at your facility, you and Cintas will know immediately. Cintas TruCount™ takes the guessing out of your uniform program.
On-site proof of delivery and pickup and receipt to customer. The SSR delivers clean garments that were turned in the week prior. Dirty garments are scanned individually on-site.
A receipt is provided showing exactly what was delivered and picked up that week for each employee.
Repairs, replacements, and other maintenance are ordered on-site through the PRC (Portable Route Computer).
A history for each barcode can be seen through the PRC.
Garments are processed, sorted, then scanned at Cintas and Report printed for Accuracy. Each garment goes through the entire laundry process, finishing up in the sorting section Cintas sorts the garments by the route, day, customer and finally the individual wearer. Each garment is scanned as ready to be delivered and a report is printed.
Missing garments are reconciled and Garments are scanned & delivered back to customer. Garments misplaced or delayed in mending are notified. The missing garments are returned to the appropriate customer and employee.
Garments & service summary to customer.
The SSR delivers the garments and a printed summary of where the garments have been that week.
Garments that were repaired, replaced, or received other maintenance are noted.
Online Ordering, Tracking and Invoice Capabilities
Please see attached infographic.
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 We live in a digital, on-demand world. Your
Service Sales Representative (SSR) strives to
provide you world class service. We also know
urgent needs might arise before your next
service visit.
WE’VE INTRODUCED MYCINTAS AS A
SOLUTION TO MANAGE YOUR CINTAS
ACCOUNT ON YOUR TERMS.
Real-time visibility
Convenient 24/7 access
Create a service request and track the status
Add uniform wearers
Manage your facility services products
View your TruCount™ Service Summary reports
Send us a message
Make changes to existing employees
Shop for additional products and services
View and pay invoices and statements
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340 CINTAS CORPORATION NO. 2
ASSISTANT SECRETARY’S CERTIFICATE
I, Christopher J. Skufca, hereby certify that I am the duly elected, qualified and acting Assistant Secretary of Cintas Corporation No. 2, a corporation duly organized and existing pursuant to the laws of the State of Nevada (the “Company”), and hereby certify as follows:
Attached hereto as Exhibit A is a true, complete and correct copy of the resolutions of the Board of Directors of the Company, duly adopted by unanimous written consent of the Board of Directors dated as of August 25, 2023. The foregoing resolutions have not been amended, modified, revoked or rescinded, and are in full force and effect as of the date hereof.
IN WITNESS WHEREOF, I have hereunto subscribed my name as of the 25th day of August, 2023.
CINTAS CORPORATION NO. 2
By:
Christopher J. Skufca, Assistant Secretary
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340
EXHIBIT A
ACTION TAKEN IN A WRITING BY ALL OF THE
MEMBERS OF THE BOARD OF DIRECTORS OF
CINTAS CORPORATION NO. 2
The Directors of Cintas Corporation No. 2, a Nevada corporation (the “Company”), do hereby certify that the following is a true and correct record of all actions taken in writing by said Directors of the Company, in lieu of a Special Meeting of the Board of Directors, as of the 25th day of August, 2023.
RESOLVED: That the Company shall have authority to enter into the Contract Purchase Agreement for Rental of Uniforms, Floor Mats, Mops, Towels, and Related Services with the City of Roseville dated September 1, 2023 (the “Agreement”) upon the terms and conditions thereof and as the same may be amended from time to time and complete and consummate the transactions contemplated thereby; and that the actions of any and all employees or officers of the Company, including but not limited to, the actions of Amanda Smith and Phil Adamson in negotiating, executing and carrying out the provisions of the Agreement are hereby approved, ratified and confirmed;
BE IT FURTHER RESOLVED: That Amanda Smith, Phil
Adamson or any of the officers of the Company shall be and hereby are authorized and directed to perform and shall satisfy all terms and conditions of the Agreement and the transactions contemplated thereby and shall execute and deliver on behalf of the Company any and all documents necessary or desirable to carry out the Agreement, including without limitation, the Agreement, any amendments to the Agreement, and other agreements,
documents, affidavits, bonds, sureties and certificates necessary to effectuate the transactions contemplated by the Agreement, in such forms as Amanda Smith, Phil Adamson or the officer executing the same may approve, whose execution shall finally and conclusively evidence such approval of the Company.
DocuSign Envelope ID: 41E67040-52DF-40A2-BDF2-A743D2C3F340
COUNCIL COMMUNICATION
CC #: 2937
File #: 0203-12
Title: Police Handguns - Sole Source Purchase Order
Contact: Mark Peinado 916-774-5021 [email protected] Meeting Date: 9/20/2023
Item #: 7.7.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council approve a Sole Source Purchase Order to LCAction Police Supply for the purchase of law enforcement handguns and holsters in the amount of $149,998.94.
BACKGROUND
The Roseville Police Department plans to update its handgun inventory by purchasing new model handguns with 21
st century aiming technology. RPD intends to purchase the Glock Model 45 9mm handgun with the Modular Optic System with accompanying holster. The Modular Optic System, or MOS, is a system in which an illuminated optic is mounted/affixed to each individual officer handgun. The illuminated optic provides a small “Heads-Up Display” which allows the officers to focus more on a target or threat, rather than having to spend time aligning the old style iron sights.
You can look through the reticle and focus on the red or green aiming dot. Optical sights are popular in competitive shooting sports and are becoming increasingly common in law enforcement. Optical sights improve the accuracy at both long and short range, enabling faster target transition and quicker sight acquisition of your target.
LCAction Police Supply is the sole, factory authorized, Glock blue label law enforcement distributor for the entire State of California.
FISCAL IMPACT
The total cost for this handgun purchase is $149,998.94. Funding has been approved in the Police Department's FY2023-2024 departmental budget in the Supplemental Law Enforcement Services Fund.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Approval of a purchase order meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Respectfully Submitted,
Mark Peinado, Management Analyst
Troy Bergstrom, Police Chief
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
LCAction Quote
Sole Distributor Letter
1088 N FIRST STREET
SAN JOSE CA 95112 Date Aug-02-2023
TEL: 408 294-2677 • FAX 408 294-6444
EMAIL: [email protected]
STATE OF CA SBE CERTIFICATION # 1017260
CUST#
QTY. PRICE TOTAL
145 841.08 121956.60
145 118.99 17253.55
0.00 0.00
0.00 0.00
Notes: $139,210.15
7.75%
10788.79
0.00 $149,998.94
SAFARILAND 6360RDS LEVEL III HOLSTER FOR GU, LIGHT & OPTIC
SCOTT CHRISTIAN - RANGEMASTER
ROSEVILLE POLICE DEPT
TEL: 916-774-5099 or 916-257-9631
EMAIL: [email protected]
TOTAL
EST. DELIVERY
DESCRIPTION
GLOCK G45 MOS PACKAGE PA455S302MOS6H1 W/509T, TRITIUM
NET 30
QUOTED BY
LC ACTION POLICE SUPPLY
SUBTOTAL
OTHER
SALES TAX
SHIPPING
4417
TERMS
KIP MILLER 90 DAYS
F.O.B.
QUOTED
QUOTATION
G45 PACKAGE PISTOL INCLUDES DIRECT MOUNT SLIDE,
HOLOSUN 509T RED DOT AND SHS SIGHTS WITH FRONT
TRITIUM DOT ALL FACTORY INSTALLED
1088 N FIRST STREET SAN JOSE CA 95112 TEL: 408-294-2677 FAX: 408-294-6444 EMAIL: [email protected]
LC ACTION POLICE SUPPLY
Date: August 17, 2023
To:
Officer Scott Christian #121
Rangemaster/Quartermaster
Roseville Police Department
City of Roseville
1051 Junction Blvd.
Roseville, CA 95678
(916) 774-5099 Range
(916) 257-9631
[email protected]
LC Action is the sole, factory authorized, certified SBE Glock blue label law enforcement distributor for the entire State of California.
Best regards,
Kip Miller
COUNCIL COMMUNICATION
CC #: 2957
File #: 0203-06
Title:
Enterprise Asset Management Program and Software Licensing - Sole Source Purchase Order
Contact: Alex Vergara 916-251-8727 [email protected] Meeting Date: 9/20/2023
Item #: 7.8.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution to approve a purchase order for year one of a five-year renewal of the Maximo Enterprise Asset Management (EAM) agreement with IBM, Inc. Staff also recommends that City Council authorize annual purchase orders for renewal years two through five as well as authority for the Chief Information Officer to approve additional costs, not to exceed $55,000 per year, over the term of the agreement to cover any changes in the City’s Information Technology (IT) environment that increase licensing & consultation costs.
Future renewals of the purchase order will be contingent on Council approval of the budget each year.
BACKGROUND
The City’s EAM system provides asset tracking and work orders for critical citywide assets and provides extensive reporting for management and regulatory compliance. These assets are valued at over $2 billion. EAM is used by the City’s Utilities departments, as well as other City departments, and has been integrated with other critical systems like Automated Metering Infrastructure (AMI), and Utility Billing (Customer Information System). The City of Roseville purchases licenses that provide various levels of access to users of the Maximo application on an annual basis. As new business units are onboarded to Maximo, there is a need for additional staff to access the system, resulting in the need to true up the IBM licenses with the EAM system renewal.
FISCAL IMPACT
Staff requests approval of a purchase order for year one of a five-year renewal of the Maximo EAM agreement with IBM, Inc. for the estimated amount of $513,226. Environmental Utilities, Electric, Information Technology, and Public Works/Fleet will absorb the additional licensing costs within existing budgeted resources. If the departments cannot absorb the cost of the licenses, staff will return to City Council later in the fiscal year to recommend a budget adjustment. The total estimated costs for years two through five (FY2024-25 through FY2027-28) total $2,322,670 which includes annual five percent (5%) increases and will be included in Information Technology Operations Fund budget. The estimated total costs over the 5-year period are $2,835,896.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. A purchase order and software licensing meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F – Invest in well-planned infrastructure and growth Respectfully Submitted,
Alex Vergara, Information Technology Program Manager
Hong Sae, Chief Information Officer
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 23-392
Terms and Conditions
State Local and GovContracts
Quote
RESOLUTION NO. 23-392
APPROVING A PURCHASE ORDER AND CHANGE ORDER AUTHORITY
WHEREAS, a purchase order for Maximo software licensing that supports the Enterprise Asset Management system, with International Business Machines, Inc., has been reviewed by the City Council; and
WHEREAS, due to the potential for changes in the City’s Information Technology environment that increases licensing costs, staff is requesting change order authority.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that the purchase order for Maximo software licensing is hereby approved.
BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to execute four (4) additional one (1) year renewals without further City Council approval, provided that the applicable budget is approved by the City Council each year, or until City staff determines that continuing with the same vendor is not in the City’s best interest.
BE IT FURTHER RESOLVED that the Chief Information Officer is authorized to approve additional costs, not to exceed $55,000 per year, over the term of the agreement to cover any changes in the City’s Information Technology environmental that increase licensing costs.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
________________________
City Clerk
Z125-5831-11_ZZ_02-2023_en Page 1 of 21
International Passport Advantage Agreement
This International Passport Advantage Agreement (IPAA) and its applicable Attachment(s) and Transaction Document(s) (TD(s)) are the complete agreement regarding each transaction under this IPAA (together the Agreement) under which Client may order Eligible Products (EPs) from IBM or IBM Business Partners. EPs are IBM and Non-IBM offerings such as Programs, Appliances, or Services made available to Client by IBM. Services include but are not limited to Software Subscription and Support (S&S), Cloud Services, or other Services IBM provides, such as customization, configuration, or other services to support EPs, as detailed in a TD.
TDs provide the specifics of transactions, such as charges, and a description of and information about the applicable EPs. Examples of TDs include terms of use, service descriptions, License Information documents (LIs), quotes, and Proofs of Entitlement (PoEs). There may be more than one TD applicable to a transaction.
Attachments provide supplemental terms that apply across certain types of EPs.
Subject to Section 8, in the event of conflict, an Attachment prevails over this IPAA, and a TD prevails over any Attachment and this IPAA.
1. IPAA Acceptance
a. The Client Originating Company (identified as the Originating Site in the IPAA Enrollment Form) and each of its participating Enterprise companies (identified as an Additional Site in the IPAA Enrollment Form) (together, the Client) accept this IPAA by submitting an IPAA Enrollment Form to IBM or Client's chosen IBM Business Partner.
b. The IBM Originating Company that accepts the Client Originating Company's orders and the Client Originating Company agree to coordinate the activities of their own Enterprise under this IPAA. The Client Originating Company is responsible for compliance with the terms by all Client Sites assigned a Passport Advantage Site Number (each, a Site) under this IPAA. c. Enterprise means the set of legal entities that, by more than 50%, owns, are owned by, or are under common ownership with the Client Originating Company.
d. This IPAA is effective on the date IBM accepts the initial order under this IPAA and remains in effect until the Client Originating Company or the IBM Originating Company terminates it as described in this IPAA. IBM accepts Client's orders by: i) sending a TD that includes the level of authorized use; ii) making a Program or Cloud Service available; iii) shipping an Appliance; or iv) providing the Services.
2. Content and Data Protection
a. Content consists of all data, software, and information that Client or its authorized users provide, authorize access to, or inputs to the Cloud Services or information or data Client may provide, make available or grant access to, in connection with IBM providing the Cloud Services or other Services.
Client grants the rights and permissions to IBM, its affiliates, and contractors of either, to use, provide, store, and otherwise process Content solely for the purpose of providing the Cloud Services or other Services. As between IBM and Client, use of the Cloud Services or other Services will not affect Client's ownership or license rights in Content. b. IBM, its affiliates, and their respective contractors may access and use the Content solely for the purpose of providing and managing the IBM Cloud Services or other IBM Services. IBM will treat all Content as confidential by only disclosing the Content to IBM employees and contractors to the extent necessary to provide the IBM Cloud Services or other IBM Services. c. Client is responsible for obtaining all necessary rights and permissions to permit processing of Content in the Cloud Services or for IBM to perform other Services. Client will make disclosures and obtain consent required by law before Client provides, authorizes access to, or inputs individuals' information, including personal or other regulated data, for processing in the IBM Cloud Services or use by IBM in providing the other Services.
d. If any Content could be subject to governmental regulation or may require security measures beyond those specified by IBM for the Cloud Services or to provide other Services, Client will not provide, allow access to, or input the Content for processing in the Cloud Services or provide or allow access of Content to IBM to provide other Services unless specifically permitted in the applicable TD or unless IBM has first agreed in writing to implement additional security and other Z125-5831-11_ZZ_02-2023_en Page 2 of 21
measures. Client is responsible for adequate back-up of Content on Client managed systems prior to providing or allowing access of Content to IBM to provide other Services. e. IBM Data Security and Privacy Principles (DSP), at http://ibm.com/terms/?id=z126-7745, apply for generally-available, standard IBM Cloud Services and other IBM Services as identified in a TD. At IBM's discretion, IBM may change the DSP from time to time and the change will be effective when published or on the specified effective date. The intent of any change will be to improve and clarify existing commitments and maintain alignment to current adopted operational and security standards or applicable laws. The intent is not to degrade the security or functionality. f. The specific security features and functions of an IBM Cloud Service or other IBM Services will be described in the applicable Attachment and/or TD(s). Client is responsible for selecting, ordering, enabling, or using available data protection features appropriate to support Client's use of Cloud Services. Client is responsible for assessing the suitability of the Cloud Services for the Content and Client's intended use of Content with Services IBM will provide. Client acknowledges that the use of Cloud Services and other Services meets Client's requirements and processing instructions required to comply with applicable laws.
g. IBM's Data Processing Addendum (DPA) is found at http://www.ibm.com/dpa. A DPA Exhibit(s) will specify how IBM will process personal data contained in Content. The DPA and applicable DPA Exhibit(s) apply to personal data contained in Content, if and to the extent: i) the European General Data Protection Regulation (EU/2016/679); or ii) other data protection laws identified at http://www.ibm.com/dpa/dpl apply. Upon request by either party, IBM, Client and/or their respective affiliates, will enter into additional agreements as required by law in the prescribed form for the protection of regulated personal data included in Content. The parties agree (and will ensure that their respective affiliates agree) that such additional agreements will be subject to the terms of the Agreement.
h. For IBM Cloud Services with self-managed features, Client can remove Content at any time.
Otherwise, IBM will return or remove Content from IBM computing resources upon the expiration or cancellation of the IBM Cloud Services or other IBM Services, or earlier upon Client's request. IBM may charge for certain activities performed at Client's request (such as delivering Content in a specific format). IBM does not archive Content; however, some Content may remain in backup files until expiration of such files as governed by IBM's backup retention practices.
3. Warranties
a. IBM warrants an IBM Program as set forth in its applicable IBM license agreement. b. IBM warrants it provides Services using commercially reasonable care and skill as described in the Agreement. The warranty for Services ends when the Services end. c. IBM warrants that an IBM Machine component of an Appliance used in its specified operating environment conforms to its specifications. The warranty period is specified in the applicable Attachment or TD.
d. If an Appliance does not function as warranted during its warranty period and IBM is unable to repair or replace it with a functionally equivalent, Client may return it to IBM or the IBM Business Partner for a refund of the amount Client paid (for recurring charges, up to twelve months' charges) and Client's license or right to use such Appliance terminates. e. These warranties are the exclusive warranties from IBM and replace all other warranties, including the implied warranties or conditions of satisfactory quality, merchantability, non-infringement, and fitness for a particular purpose. IBM does not warrant uninterrupted or error-free operations of an EP or that IBM will correct all defects or prevent third-party disruptions or unauthorized third-party access to an EP.IBM warranties will not apply if there has been misuse, modification, damage not caused by IBM, or failure to comply with written instructions provided by IBM. Non-IBM EPs and preview products, or identified non-warranted IBM EPs are sold under the Agreement as-is, without warranties of any kind. Third parties may provide their own warranties to Client for Non-IBM EPs.
4. Charges, Taxes, Payment, and Verification
a. Client's right to use an EP is contingent on Client paying applicable charges as specified in the Agreement under which Client acquired the entitlements. b. Client agrees to pay all applicable charges for acquired entitlements and any charges for use of excess authorizations. Charges are exclusive of any customs or other duty, tax, and similar levies Z125-5831-11_ZZ_02-2023_en Page 3 of 21
imposed by any authority resulting from Client's acquisitions of entitlements and will be invoiced in addition to such charges. Amounts are due upon receipt of the invoice and payable within 30 days of the invoice date to an account specified by IBM and if not paid within 30 days, late payment fees may apply. Client is responsible to properly acquire additional entitlements in advance to increase its use. Prepaid EPs must be used within the applicable period. IBM does not give credits or refunds for any prepaid, one-time charges, or other charges already due or paid except as specified in this Agreement. IBM may pro-rate charges for select EPs to align with a common date such as Anniversary dates.
c. Client agrees to: i) pay any withholding tax directly to the appropriate government entity where required by law; ii) furnish a tax certificate evidencing such payment to IBM; iii) unless otherwise stated, pay IBM only the net proceeds after tax; and iv) fully cooperate with IBM in seeking a waiver or reduction of such taxes and promptly complete and file all relevant documents. d. If Client imports, exports, transfers, accesses, or uses an EP across a border, Client agrees to be responsible for and pay authorities any custom, duty, tax, or similar levy assessed by the authorities. This excludes those taxes based on IBM's net income. e. If Client pays for Subscription License charges through periodic (annual, quarterly, monthly) billings, Client's obligation to pay such charges is absolute and unconditional and Client agrees not to assert any right of setoff against IBM or any assignee of IBM. Neither IBM nor IBM’s affiliates and subsidiaries make any representation regarding Client’s accounting treatment of such payments; IBM may account for such receivables as financing receivables for United States reporting purposes.
4.1 License Verification
a. Client will, for all Programs at all Sites and for all environments, create, retain, and each year provide to IBM upon request with 30 days' advance notice: i) a report of deployed Programs, in a format requested by IBM, using records, system tools output, and other system information; and ii) supporting documentation (collectively, Deployment Data). b. Upon reasonable notice, IBM and its independent auditors may verify Client's compliance with the Agreement at all Sites and for all environments, in which Client uses (for any purpose) Programs.
Verification will be conducted in a manner that minimizes disruption to Client's business, and may be conducted on Client's premises, during normal business hours. IBM will have written confidentiality agreement with the independent auditor. In addition to providing Deployment Data described above, Client agrees to provide to IBM and its auditors additional accurate information and Deployment Data upon request.
c. Client will promptly order and pay at IBM's then current prices for: i) any deployments in excess of authorizations indicated on or by any annual report or verification; ii) applicable S&S for such excess deployments for the lesser of the duration of such excess use or two years; and iii) any additional charges and other liabilities determined as a result of such verification, including but not limited to taxes, duties, and regulatory fees.
4.2 Volume Pricing
a. IBM assigns each EP a point value, which may be zero, and can be changed by IBM. A Relationship Suggested Volume Pricing (RSVP) level is determined by aggregating points for all EPs ordered during Client's Passport Advantage Program Term (PA Program Term). The point value of Client's initial EP order determines Client's initial RSVP level. Client may attain a higher RSVP level by placing additional EP orders. The higher RSVP level will apply to orders placed after the higher RSVP level is attained. A Suggested Volume Pricing (SVP) level is also calculated for each order and is based on the point value for that order. If the SVP level for an order is higher than Client's current RSVP level, the SVP level will apply to that order. b. The initial PA Program Term commences with Client's first order after enrollment and continues until the last day of the twelfth full month thereafter (i.e., the initial PA Program Term includes 12 full months, plus if the order was not placed on the first day of a month, the remainder of the first month). On the first day of the month following the end of the prior PA Program Term (the Anniversary), the next 12-month PA Program Term begins. For each PA Program Term after the initial PA Program Term, Client's RSVP level is reset on the Anniversary, based on EPs acquired by all active Sites during the prior PA Program Term. The RSVP level for a new PA Program Term will Z125-5831-11_ZZ_02-2023_en Page 4 of 21
not be lowered by more than one level below Client's RSVP level at the end of the prior PA Program Term.
RSVP/SVP Level Table
RSVP/SVP Level BL D E F G H
Points <500 500 1,000 2,500 5,000 10,000
c. For Client's Sites enrolled as a Government Site or Academic Volume Option Site on the IPAA Enrollment Form receive applicable discounted pricing and the above section 4.2 terms do not apply. For Academic Volume Option pricing, EPs must be used for academic or administrative purposes only and may not be used for commercial purposes.
5. Liability and Intellectual Property Protection
a. IBM's entire liability for all claims related to the Agreement will not exceed the amount of any actual direct damages incurred by Client up to the amounts paid (if recurring charges, up to 12 months' charges apply) for the EP that is the subject of the claim, regardless of the basis of the claim. IBM will not be liable for special, incidental, exemplary, indirect, or economic consequential damages, or lost profits, business, value, revenue, goodwill, or anticipated savings. These limitations apply collectively to IBM, its affiliates, contractors, and suppliers. b. The following amounts are not subject to the above cap: i) third-party payments related to infringement claims described in the paragraph 5(c) below; and ii) damages that cannot be limited under applicable law.
c. If a third party asserts a claim against Client that an IBM EP acquired under the Agreement infringes a patent or copyright, IBM will defend Client against that claim and pay amounts finally awarded by a court against Client or included in a settlement approved by IBM. To obtain IBM's defense against and payment of infringement claims, Client must promptly: i) notify IBM in writing of the claim; ii) supply information requested by IBM; and iii) allow IBM to control, and reasonably cooperate in, the defense and settlement, including mitigation efforts. IBM's defense and payment obligations for infringement claims extend to claims of infringement based on open-source code that IBM selects and embeds in an IBM EP.
d. IBM has no responsibility for claims based on Non-IBM EPs, items not provided by IBM, or any violation of law or third-party rights caused by Content, or any Client materials, designs, specifications, or use of a non-current version or release of an IBM EP when an infringement claim could have been avoided by using a current version or release.
6. Termination
a. Either party may terminate: i) this IPAA without cause on at least 30 days' notice to the other after expiration or termination of its obligations under each Agreement; or ii) immediately for cause if the other is in material breach of an Agreement, provided the non-complying party is given notice and reasonable time to comply. Termination of this IPAA does not terminate transactions in effect and not affected by the cause of a material breach and provisions of the Agreement, as they relate to such transactions, remain in effect until fulfilled or otherwise terminated in accordance with the Agreement term. Upon any termination of Client's license to use a Program, Client will promptly destroy all copies of such Program.
b. Any terms that by their nature extend beyond the Agreement termination remain in effect until fulfilled and apply to successors and assignees.
c. Each party will allow the other reasonable opportunity to comply before it claims the other has not met its obligations. Client's failure to pay, or Client providing inaccurate or fraudulent account or payment information to acquire EPs, is a material breach. d. This IPAA is terminated if for 24 consecutive months: i) Client has not placed an order; and ii) there are no continuous Services in effect.
7. Governing Laws and Geographic Scope
a. Both parties agree to the application of the laws of the country where the transaction is performed (or for IBM or Non-IBM Cloud Services, the laws of the country of Client's business address), without regard to conflict of law principles.
Z125-5831-11_ZZ_02-2023_en Page 5 of 21
b. The rights and obligations of each party are valid only in the country where the transaction is performed (or for IBM or Non-IBM Cloud Services the country of Client's business address) or, if IBM agrees, the country where the IBM EP or Non-IBM EP is placed in productive use, except all licenses are valid as specifically granted.
c. Each party is also responsible for complying with: i) laws and regulations applicable to its business and Content; and ii) import, export and economic sanction laws and regulations, including the defense trade control regime of the United States of America and any applicable jurisdiction that prohibit or restrict the import, export, re-export, or transfer of products, technology, services or data, directly or indirectly, to or for certain countries, end uses or end users. IBM will not serve as Client's exporter or importer, except as required by data protection laws, for: i) any Content; ii) use of any portion of a Cloud Service from a country outside Client's business address. d. If any provision of the Agreement is invalid or unenforceable, the remaining provisions remain in full force and effect. Nothing in the Agreement affects statutory rights of consumers that cannot be waived or limited by contract. The United Nations Convention on Contracts for the International Sale of Goods does not apply to transactions under the Agreement.
8. Program License
a. IBM Programs available under this IPAA are licensed under IBM's International Program License Agreement (IPLA) or a designated IBM license agreement available at http://www.ibm.com/terms/pla, and the Program's LI available at http://www.ibm.com/terms/?cat=software-license. If there is a conflict between the terms of this IPAA, including its applicable Attachments and TDs, and the terms of the IPLA including the applicable LI, the terms of this IPAA prevail.
b. Trade-up licenses for Programs that replace qualifying IBM Programs active on S&S or qualifying Non-IBM Programs may be acquired for a reduced charge. When Client installs a replacement Program, the replaced Program license terminates, Client is required to uninstall and destroy all terminated copies of the replaced Program, and upon request from IBM, provide evidence of such.
8.1 IBM Software Subscription and Support
a. IBM Software Subscription and Support (S&S) for IBM Programs is detailed in the IBM Support Guide at http://www.ibm.com/support/guide. IBM provides S&S for each IBM Program licensed under this IPAA that Client has active S&S. S&S begins and ends as specified in a TD. b. Software Subscription provides Client access to generally-available defect corrections, restrictions, bypasses, and any new versions, releases, or updates.
c. Software Support (Support) provides Client assistance with Client's: i) routine, short duration installation and usage (how-to) questions; and ii) code-related questions. Support for a specific version or release of an IBM Program is available only until IBM withdraws the Support for that IBM Program's version or release. Client must upgrade to a supported version or release of the IBM Program to continue to receive Support. The IBM Software Support Lifecycle policy is available at http://www.ibm.com/support/lifecycle.
d. After Support is withdrawn for selected IBM Program versions or releases, listed in the IBM Support Guide and while Client has current S&S coverage for such IBM Programs, IBM will continue to provide Support only for existing code patches and fixes. IBM will not develop or provide new patches or fixes for those selected IBM Program versions or releases. e. IBM uses information about errors and problems to improve IBM Programs and Services and assist with the provision of related support offerings.
f. If Client elects to continue S&S for an IBM Program at a designated Site, Client must maintain S&S for all uses and installations of the IBM Program at that Site. g. If Client requests to renew expiring S&S at a lesser quantity of IBM Program uses and installations than the expiring quantity, Client must provide system generated documentation that verifies current uses and installations of the IBM Program to IBM, as specified in the Agreement. If the documentation is not received by IBM at least 30 days prior to the S&S renewal date, Client must renew all expiring quantities.
h. If Client’s S&S coverage lapses, the benefits of S&S will no longer be available to the Client including the ability to access the Program’s downloads, media, and fixes. To reinstate S&S, Client must acquire S&S at then current prices for all uses and installations.
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i. Client shall not use S&S benefits for IBM Programs for which Client is not fully authorized. If Client does, Client must reinstate S&S for all such unauthorized uses and installations at then current prices.
9. Term Licenses and Renewal
a. Programs IBM offers under term licensing models give Client access to a Program and S&S for a term duration specified in applicable TDs. The license term begins and ends as specified in a TD. b. When the license term of the Program ends, Client's access to the Program and S&S will terminate and Client is required to uninstall and destroy all terminated copies of the affected Program. Client agrees to provide evidence of such upon request from IBM.
9.1 Subscription License
a. Client may not terminate entitlements for Subscription License before the end of the current term. b. For select Programs that Client has previously licensed and has active S&S (Qualifying Program), Client may upgrade to a Subscription License Upgrade Program, as detailed in a TD. When a Subscription License Upgrade is acquired, Client may use the Qualifying Program and the Subscription License Program in any deployment combination up to the total number of entitlements purchased for the Subscription License Upgrade Program.
9.2 Monthly License
a. Client may terminate a Monthly License term early by giving IBM at least 30 days' written notice.
Client will receive a prorated refund for any whole months remaining in a prepaid term.
9.3 Fixed Term License
a. Client may terminate a Fixed Term License early by giving IBM at least 30 days' written notice.
Client will receive a prorated refund for any whole months remaining in a prepaid term.
9.4 Term License Renewal
a. If the Program is still available and Client renews for another term, IBM will renew the expiring license entitlements for the term and renewal charges specified in the TD. b. If Client does not renew for another term, Client's right to use the Program and S&S terminates and Client is required to uninstall and destroy all terminated copies of the affected Program. Client agrees to provide evidence of such upon request from IBM. c. If Client does not renew a Subscription License Upgrade Program for a new term, Client's right to use the Program and S&S terminates and Client is required to uninstall and destroy all terminated copies of the affected Program except the Qualifying Program. Client agrees to provide evidence of such upon request from IBM. Client may continue to use the Qualifying Program at the Program version level in use at the end of the term or, if applicable, the designated Qualifying Program replacement. If Client elects to resume available S&S for the Qualifying Program, Client must acquire the S&S at then current prices for all uses and installations of the Qualifying Program d. If Client requests to renew expiring licenses at a lesser quantity of the Program uses and installations then the expiring quantity, Client must provide system generated documentation that verifies the current Program uses and installations to IBM, as specified in the Agreement. If the documentation is not received by IBM at least 30 days prior to the renewal date, Client must renew all expiring quantities.
e. If available, Client may change the renewal option for a Term License at any time by giving IBM at least 30 days' written notice before the end of the current term.
10. Full Capacity and Virtualization Requirements
a. Client must license the total number of physical processor cores activated and available for use on all servers where the EP, if applicable, is deployed (Full Capacity).
10.1 Virtualization Environment Products (Sub-Capacity or Container Licensing) a. Sub-Capacity Licensing – EPs that meet the requirements for Sub-Capacity usage (see http://www.ibm.com/software/passportadvantage/subcaplicensing.html) may be licensed under SubCapacity Licensing terms (Eligible Sub-Capacity Product). Client must acquire entitlements equal to the virtualization capacity available to the Eligible Sub-Capacity Product.
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b. Container Licensing – EPs that meet the requirements for Container usage (see http://www.ibm.com/software/passportadvantage/containerlicenses.html) may be licensed under Container Licensing terms (Eligible Container Product). Client must acquire entitlements for the total number of processor cores associated with the capacity of all containers available to the Eligible Container Product.
c. Client is responsible to comply with the virtualization environments requirements to be eligible for Sub-Capacity Licensing or Container Licensing benefits. d. Prior to an increase in Sub Capacity or Container Licensing Programs, Client must first acquire sufficient licenses, including IBM Software Subscription and Support, if applicable, to cover that increase.
e. If EP deployments do not meet the Sub-Capacity Licensing or Container Licensing requirements in this section, Client is required to license at Full Capacity.
10.2 Client's Reporting Responsibilities
In addition to the License Verification terms in section 4.1 and applicable TDs, the following reporting and resolution terms apply.
a. For EPs under Sub-Capacity Licensing and Container Licensing, Client agrees to properly install, run, and maintain the most current version of the applicable license reporting tool within 90 days of Client's first deployment and produce a report. Unless IBM approves a different reporting tool, the Client agrees to the following tools.
● Sub-Capacity Products -Client will use the IBM License Metric Tool (ILMT) and to subscribe to the ILMT support notifications at http://www.ibm.com/support/mynotifications and promptly install any updates.
● Container Products – Client will use the IBM License Service tool and Client is responsible to correctly configure according to the Eligible Container Product's documentation. b. Client must assign a person in Client's organization with authority to manage and promptly resolve questions on reports or inconsistencies between report contents, license entitlement, and the applicable license reporting tool.
c. For EPs under Sub-capacity Licensing or Container Licensing, for all Sites and environments, Client is required to run reports at least once per quarter and retain each report a minimum of 2 years and provide to IBM upon request. Manual reporting is not permitted for Container Products. d. For EPs running in Full Capacity, in all Sites and environments, Client may track (manually or using an available IBM tools) and report Client's licenses for each EP at least once a year and retain each report a minimum of 2 years and provide reports to IBM upon request. Report format must contain similar information as noted in the Manual Calculation of Virtualization Capacity report at:
http://www.ibm.com/software/passportadvantage/subcaplicensing.html. e. For EPs that no longer meet Sub-Capacity Licensing requirements for which Client would like to continue to license under Sub-Capacity Licensing terms, Client will submit a migration plan to meet the Sub-Capacity Licensing requirements for IBM's review and approval. During this migration, Client shall maintain the version of ILMT that supported the EP based on the Sub-Capacity Licensing requirements prior to becoming ineligible and continue to generate ILMT reports. With IBM's prior written consent, Client may manually manage and track such EPs in accordance with item d above.
f. Except for IBM approved changes, modifications, or updates to software licensing tools, Client may not alter, modify, omit, delete, or misrepresent by any means, directly or indirectly:
(1) any IBM-approved software reporting tools, including its code, or any report generated by such tools; or
(2) any manually generated reports that misrepresents use of EPs.
10.3 Excess Use Resolution
a. IBM will notify Client in writing, if Client has used any EPs in excess of Client's Authorized Use or is otherwise not in compliance with the Agreement, the Client agrees to promptly pay the charges at then current prices that IBM specifies in an invoice for: i) any such excess use; ii) S&S and Selected Support for such excess use for the lesser of the duration of such excess use or two years; and iii) Z125-5831-11_ZZ_02-2023_en Page 8 of 21
any additional charges and other liabilities determined, including but not limited to taxes, duties, and regulatory fees.
11. Selected Support
a. IBM may provide Selected Support services for Programs that: i) are not typically supported by IBM; and ii) are licensed to Client under separate license terms, such as non-warranted IBM Programs, Non-IBM Programs, or Open-Source Code Programs. Selected Support provides Support Services and may also provide Client assistance with application design and development as specified by IBM. IBM's Software Support Lifecycle does not apply to these Programs and Subscription Services are not offered for these Programs. If Client allows Selected Support Services coverage to lapse, Client may acquire new coverage at then current prices.
12. CEO (Complete Enterprise Option) Product Categories a. Collections of EPs may be offered by IBM on a per user basis subject to a minimum initial user quantity (a CEO Product Category). For Client's first CEO Product Category, Client must acquire licenses for all users in their Enterprise who have been assigned a machine capable of copying, using, or extending the use of any Program in the CEO Product Category (CEO User). For each additional CEO Product Category, Client must meet the applicable minimum initial order user quantity requirement for the CEO Product Category but is not required to acquire licenses for all CEO Users.
b. Any installs of any component of a CEO Product Category can only be used by or for users for whom licenses have been obtained. All Programs used on an end user device to access a Program on a server must be acquired from the same CEO Product Category as the server Program they access.
13. Appliances
a. An Appliance is an EP which is a combination of Program components, Machine components, and any applicable Machine Code components offered together as a single offering and designed for a specific function. Unless otherwise provided, terms that apply to a Program apply to the Program component of an Appliance. Client shall not use any component independent of the Appliance of which it is a part.
b. A Machine component is an IBM or non-IBM device, including its feature, upgrades, and accessories. A Machine Code component is computer instructions, fixes, replacements, and related materials, such as data and passwords relied on, provided by, used with, or generated by a Machine component, that permit the operation of the Machine component's processors, storage, or other functionality. Machine Code may include software code licensed under separate agreement identified in an Other Internal Licensed Code Attachment. Client acceptance of this IPAA includes acceptance of IBM's Machine Code license agreements provided with the Appliance. A Machine Code component is licensed only for use to enable a Machine component to function under its specifications and only for the capacity and capability for which Client has acquired IBM's written authorization. The copy of the Machine Code component is copyrighted and licensed. c. Each Appliance is manufactured from parts that may be new or used, and in some cases, an Appliance or its replacement parts may have been previously installed. Regardless, IBM's warranty terms apply.
d. When Client acquires an Appliance directly from IBM, IBM transfers title to a Machine component to Client or, if applicable, Client's lessor, upon payment of all the amounts due except in the United States where title transfers upon shipment. IBM pays for insurance on Client's behalf until delivery to Client's location. Client must report any loss in writing to IBM within 10 business days of delivery and follow the claim procedure provided by IBM. For an upgrade acquired for an Appliance, IBM reserves transfer of title of the Machine component until IBM receives payment of all the amounts due and receives all removed parts, which then become IBM's property. IBM will not serve as the exporter or importer of record.
e. If an Appliance is IBM-set-up (IBM installable), Client will allow installation within 30 days of shipment or additional charges may apply. Client will promptly install or allow IBM to install mandatory engineering changes. If an Appliance is Client-set-up (Client installable), Client will install it according to instructions provided with it.
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13.1 Appliance Services
a. IBM provides Appliance Services consisting of Machine maintenance and S&S as a single offering as well as other service offerings described in the IBM Appliance Support Guide at https://www.ibm.com/support/pages/node/737691.
b. Appliance Services cover undamaged and properly maintained and installed Appliances used as authorized by IBM with unaltered identification labels. Services do not cover alterations, accessories, supply items, consumables (such as batteries), structural parts (such as frames and covers), or failures caused by a product for which IBM is not responsible. One year of Appliance Services is included with the purchase of an Appliance starting on the Warranty Start Date specified in a TD.
c. If Client renews Appliance Services for an Appliance, Client must: i) also renew any expansions or add-ons applied to the Appliance; and ii) maintain Appliance Services for all uses and installations of the Appliance and expansions at a designated Site. All renewals will be fulfilled with Appliance Services offered at the same level of service, if available, that Client was entitled to during that prior coverage.
d. If Client allows Appliance Services coverage to lapse, the benefits of Appliance Services will no longer be available to the Client. To reinstate Appliance Services, Client must acquire Appliance Services at then current prices for all uses and installations. The Appliance may be inspected by IBM no later than 30 days after Appliance Services have been reinstated. If the Appliance is not in acceptable condition, Client must restore the Appliance into acceptable working condition, as determined by IBM, to receive Appliance Service for that Appliance. e. Parts removed or exchanged for upgrade, warranty service, or maintenance become IBM property and must be returned to IBM within 30 days. A replacement takes on the warranty or maintenance status of the replaced part. If Client returns an Appliance to IBM, Client will remove all features not supported under Appliance Services, securely erase all data, and ensure that it is free of any legal restrictions that would prevent its return.
14. Cloud Services
a. Cloud Services are "as a service" EPs that IBM makes available and provides via a network, such as software as a service, platform as a service, or infrastructure as a service, or other network delivered services as specified in a TD.
b. Cloud Services are designed to be available 24/7, subject to maintenance. IBM will provide advance notice of scheduled maintenance.
c. When IBM accepts Client's order, IBM provides Client the authorizations specified in the TD. IBM provides the facilities, personnel, equipment, software, and other resources necessary to provide Cloud Services. IBM provides generally available user guides and documentation to support Client's use of the IBM Cloud Service.
d. Client will provide hardware, software, and connectivity to access and use Cloud Services, including any required Client-specific URL addresses and associated certificates. e. Client's authorized users may access Cloud Services only to the extent of authorizations Client acquires. Client is responsible for use of Cloud Services by any user who accesses the Cloud Services with Client's account credentials.
f. The following acceptable use terms apply for Client's use of the Cloud Services. Cloud Services may not be used to undertake any activity or host Content that: i) is unlawful, fraudulent, harmful, malicious, obscene, or offensive; ii) threatens or violates the rights of others; iii) disrupts or gains (or intends to disrupt or gain) unauthorized access to data, services, networks, or computing environments within or external to IBM; iv) sends unsolicited, abusive, or deceptive messages of any type; or v)distributes any form of malware. Client may not use Cloud Services for crypto mining, unless otherwise agreed by IBM in writing. Client may not: i) reverse engineer any portion of a Cloud Service; ii) assign or resell direct access to a Cloud Service to a third party outside Client's Enterprise; or iii) combine a Cloud Service with Client's value add to create a Client branded solution that Client markets to its end user customers unless otherwise agreed by IBM in writing. g. Additional terms, including data protection terms, for Cloud Services are provided in the General Terms for Cloud Offerings for Passport Advantage Agreements document at http://www.ibm.com/terms/?id=i126-5948. Each Cloud Service is described in a Service Description Z125-5831-11_ZZ_02-2023_en Page 10 of 21
and may include additional Client responsibilities. These documents can be viewed at http://www.ibm.com/terms/?cat=cloud-sd. Technical support and service level commitments, if any, are specified in a TD.
h. Client acquires Cloud Services on a subscription basis or as specified in a TD. Client may increase authorization levels to the Cloud Services by placing an order. Client may only decrease Client's authorization levels when renewing the Cloud Services.
15. General Terms
a. EPs are for use within Client's Enterprise only. Client may not assign, resell, rent, lease, or transfer an EP to a third party. Any attempt to do so is void. Lease-back financing of Appliances is permitted.
EPs may not be used to provide commercial hosting or other commercial information technology services to third parties.
b. IBM may withdraw on 12 months' notice Term Licenses, S&S, Selected Support, Cloud Services, Appliance Services, or other Services. IBM will continue to provide the withdrawn offering for the remainder of Client's unexpired term or work with Client to migrate to another generally available IBM offering. Non-IBM EPs may be discontinued at any time if the third party discontinues or IBM no longer makes available such Non-IBM EPs.
c. IBM is an independent contractor, not Client’s agent, joint venturer, partner, or fiduciary, and does not undertake to perform any of Client’s regulatory or other obligations or assume any responsibility for Client’s business or operations. Client is responsible for its use of IBM EPs and Non-IBM EPs.
IBM is acting as an information technology provider only. IBM’s direction, suggested usage, guidance, or Client’s use of an IBM EP does not constitute medical, clinical, legal, accounting, or other licensed professional advice. Client should obtain its own expert advice. Each party is responsible for determining the assignment, direction, control, and compensation of its and its affiliates personnel and their respective contractors.
d. For Programs IBM provides to Client in tangible form, IBM fulfills its shipping and delivery obligations upon the delivery of such Programs to the IBM-designated carrier, unless otherwise agreed to in writing by Client and IBM.
e. Client may not use IBM EPs or Non-IBM EPs if failure or interruption of the IBM EPs or Non-IBM EPs could lead to death, serious bodily injury, or property or environmental damage. f. Parties will not disclose confidential information to employees or contractors of the other party without a separate, signed confidentiality agreement. If confidential information is exchanged in connection with the Agreement, the applicable confidentiality agreement is incorporated into, and subject to, this IPAA. This paragraph does not apply to Content provided in the use of an IBM Cloud Services or Non-IBM Cloud Service.
g. IBM will notify Client of any modifications to this IPAA by posting a notice at http://www.ibm.com/terms and Client can subscribe on that web page to receive direct notification of any such modifications. For existing Clients, the effective date of new IPAA terms will be three months following the document publish date and changes are not retroactive. Changes will apply, as of the effective date, to new orders and renewals. Client accepts changes by placing new orders or allowing transactions to renew after the effective date of the new IPAA terms. h. IBM maintains a robust set of business conduct and related guidelines covering conflicts of interest, market abuse, anti-bribery and corruption, and fraud. IBM and its personnel comply with such policies and require contractors to have similar policies. i. IBM, its affiliates, and their respective contractors require use of business contact information and certain account usage information. This information is not Content. Business contact information is used to communicate and manage business dealings with the Client. Examples of business contact information include name, business telephone, address, email, user ID, and tax registration number(s). Account usage information is required to enable, provide, manage, support, administer, and improve EPs. Examples of account usage information include reported errors and digital information gathered using tracking technologies, such as cookies and web beacons during use of the EPs. The IBM Privacy Statement at http://www.ibm.com/privacy provides additional details with respect to IBM's collection, use, and handling of business contact and account usage information.
When Client provides information to IBM and notice to, or consent by, the individuals is required for such processing, Client will notify the individuals and obtain their consent.
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j. IBM Business Partners who use or make available IBM EPs or Non-IBM EPs are independent from IBM and unilaterally determine their prices and terms. IBM is not responsible for their actions, omissions, statements, or offerings. If IBM notifies Client their current IBM Business Partner will no longer resell an IBM EP, Client may select to acquire the EP directly from IBM or another authorized IBM Business Partner as available.
k. IBM may offer Non-IBM EPs, or an IBM EP may enable access to Non-IBM EP, that may require acceptance of third-party terms presented to the Client. Linking to or use of Non-IBM EPs constitutes Client's agreement with such third-party terms. Third-party terms and privacy practices govern use of Content Client may provide, grant access to or input to a Non-IBM Cloud Service or other Non-IBM Service. IBM is not a party to any third-party agreement and is not responsible for Non-IBM EPs. Access to Non-IBM EPs may be discontinued at any time if the third party discontinues or IBM no longer makes available such Non-IBM EPs. l. A preview product is when IBM makes an IBM EP or Non-IBM EP or feature of an IBM EP or NonIBM EP available at no charge, with limited or pre-release functionality, or for a limited time, to try available functionality (such as beta, trial, evaluation, no-charge, or designated preview products).
Services levels agreements set forth in the Agreement (including in a TD or Attachment) that provides service levels does not apply to preview products. A preview product may not be covered by support and IBM may change or discontinue a preview product at any time and without notice.
For any preview product that is provided as a pre-release, IBM is not obligated to release a generally available product. Client is responsible for placing an order under generally available terms for generally available EPs when a preview expires. m. Neither party may assign the Agreement, in whole or in part, without the prior written consent of the other. IBM may assign its right to receive payments without consent. IBM will remain responsible to perform its obligations. Assignments by IBM in conjunction with the sale of the portion of IBM's business that includes an IBM EP or Non-IBM EP is not restricted by the foregoing. IBM may share the Agreement and related documents in conjunction with any assignment. n. The parties’ consent to use electronic means and facsimile transmissions for communications as a signed writing. Any reproduction of the Agreement made by reliable electronic means is considered an original. The Agreement supersedes any course of dealing, discussions, or representations between the parties. Where approval acceptance, consent, access, cooperation, or similar action by either party is required, such action will not be unreasonably delayed or withheld. o. No right or cause of action for any third party is created by the Agreement or any transaction under it. Neither party will bring a legal action arising out of or related to the Agreement more than two years after the cause of action arose. Neither party is responsible for failure to fulfill its nonmonetary obligations due to causes beyond its control. p. IBM may use personnel and resources in locations worldwide, including third-party contractors to support the delivery of IBM EPs and Non-IBM EPs. Client's use of IBM EPs or Non-IBM EPs may result in the transfer of Content, including personally identifiable information, across country borders. A list of countries where Content may be transferred and processed is described in the TD or as specified in Services support documentation. IBM is responsible for the obligations under the Agreement even if IBM uses a third-party contractor and will have appropriate agreements in place to enable IBM to meet its obligations.
q. If IBM and Client agree to use a Client requested third-party service to support the procurement or payment activities associated with the Agreement, IBM agrees to submit or receive applicable documents (such as invoices or similar contracting documents) using the third-party service. Client agrees to reimburse IBM for any third-party fees associated with IBM's use of such third-party service. In the event: i) the third-party service becomes unavailable for any reason; or ii) the thirdparty provider modifies the service or terms of use in a manner IBM deems commercially unacceptable, the Client agrees to directly accept documents from IBM and pay IBM directly. Client remains responsible to IBM for timely payments of invoices. If there is a claim or proceeding against IBM related to IBM's proper use of Client's requested third-party service, Client is responsible to reimburse IBM for reasonable defense costs and any amounts IBM is required to pay due to such claim or proceeding. Such claims or proceedings include those due to the third-party service provider's use, misuse, or disclosure of data or confidential information disclosed through the thirdparty service or the third-party's failure to comply with applicable data protection laws. IBM agrees to promptly notify Client in writing of any such claim or proceeding.
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Part 2 – Country Required Terms
For licenses acquired in the countries specified below, the following terms replace or modify the referenced terms of this IPAA. Terms not changed by these amendments remain unchanged and in effect.
AMERICAS
Section 2. Content and Data Protection
In paragraph a, second sentence, and paragraph b, in both the first and second sentences:
In Mexico:
Replace the word "contractors" with the word "providers".
Section 4. Charges, Taxes, Payment, and Verification
In paragraph b, replace the first and second sentence with the following:
In Brazil: Client agrees to pay all applicable charges for acquired entitlements and any charges for use in excess of authorizations and any customs or other duty, tax, and similar levies imposed by any authority resulting from Client's acquisitions under this Agreement.
In paragraph b:
In Mexico:
In the third sentence, delete the words "to an account specified by IBM".
In Mexico:
Add the following new sentence after the third sentence:
Payments will be made through electronic transfer of funds to an account specified by IBM or in IBM's domicile which is located in Alfonso Napoles Gandara 3111, Santa Fe Peña Blanca, Alvaro Obregon, Mexico City, Zip Code 01210.
Add at the end of paragraph b the following sentence:
In Canada: Where taxes are based upon the location(s) receiving the benefit of the Program, Client has an ongoing obligation to notify IBM of such location(s) if different than Client's business address listed in the applicable TD.
Add at the end of paragraph b the following sentence:
In United States: The parties agree no tangible personal property (e.g. media or publications) shall transfer to Client if: i) IBM delivers Programs electronically to Client; or ii) Client claims a sales or use tax exemption for Programs IBM delivers electronically to Client. Where taxes are based upon the location(s) receiving the benefit of the Program, Client has an ongoing obligation to notify IBM of such location(s) if different than Client's business address listed in the applicable TD.
Section 5. Liability and Intellectual Property Protection In paragraph a:
In Mexico:
Eliminate the word "contractors," in the last sentence.
Insert the following disclaimer at the end of paragraph a:
In Peru: In accordance with Article 1328 of the Peruvian Civil Code the limitations and exclusions will not apply in the cases of willful misconduct ("dolo") or gross negligence ("culpa inexcusable").
Section 7. Governing Laws and Geographic Scope
In paragraph a, replace the first sentence only with:
In Argentina: Both parties agree to the application of the laws of the Republic of Argentina, without regard to the conflict of law principles. Any proceeding regarding the rights, duties, and obligations arising from this Agreement will be brought in the Ordinary Commercial Court of the City of "Ciudad Autónoma de Buenos Aires".
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In Chile: Both parties agree to the application of the laws of Chile, without regard to the conflict of law principles.
Any conflict, interpretation or breach related to this Agreement that cannot be solved by the Parties should be remitted to the jurisdiction of the Ordinary Courts of the city and district of Santiago.
In Colombia: Both parties agree to the application of the laws of the Republic of Colombia, without regard to the conflict of law principles. All rights, duties and obligations are subject to the judges of the Republic of Colombia.
In Ecuador: Both parties agree to the application of the laws of the Republic of Ecuador, without regard to the conflict of law principles. Any dispute arising out or relating to this Agreement will be submitted to the civil judges of Quito and to the verbal summary proceeding.
In Venezuela: Both parties agree to the application of the laws of Venezuela, without regard to the conflict of law principles. The parties agree to submit any conflict related to this Agreement, existing between them to the Courts of the Metropolitan Area of the City of Caracas.
In Peru: Both parties agree to the application of the laws of Peru, without regard to the conflict of law principles.
Any discrepancy that may arise between the parties in the execution, interpretation or compliance of this Agreement that may not be directly resolved shall be submitted to the Jurisdiction and Competence of the Judges and Tribunals of the 'Cercado de Lima' Judicial District.
In Uruguay: Both parties agree to the application of the laws of Uruguay. Any discrepancy that may arise between the parties in the execution, interpretation or compliance of this Agreement that may not be directly resolved shall be submitted to the Montevideo Courts ("Tribunales Ordinarios de Montevideo").
In paragraph a, first sentence only, replace the phrase, "the country where the transaction is performed (or for IBM or Non-IBM Cloud Services, the laws of the country of Client's business address)" with:
In United States, Anguilla, Antigua/Barbuda, Aruba, Bahamas, Barbados, Bermuda, Bonaire, British Virgin Islands, Cayman Islands, Curacao, Dominica, Grenada, Guyana, Jamaica, Montserrat, Saba, Saint Eustatius, Saint Kitts and Nevis, Saint Lucia, Saint Maarten, Saint Vincent and the Grenadines, Suriname, Tortola, Trinidad and Tobago, and Turk and Caicos: the State of New York, United States.
In Canada: the Province of Ontario and the federal laws of Canada applicable therein.
In Mexico: Mexico
In paragraph b, second sentence, replace the phrase, "the country where the transaction is performed (or for IBM or Non-IBM Cloud Services the country of Client's business address) or, if IBM agrees, the country where the IBM EP or Non-IBM EP is placed in productive use" with:
In Argentina: Argentina
In Chile: Chile
In Colombia: Colombia
In Ecuador: Ecuador
In Mexico: Mexico
In Peru: Peru
In Uruguay: Uruguay
In Venezuela: Venezuela
Add the following as a new item e paragraph:
In Brazil: All disputes arising out of or related to this Agreement, including summary proceedings, will be brought before and subject to the exclusive jurisdiction of the Forum of the City of São Paulo, State of São Paulo, Brazil and the parties irrevocably agree with this specific jurisdiction renouncing any other, however privileged it may be.
In Mexico: The Parties agree to submit themselves to the exclusive jurisdiction of the courts of Mexico City to resolve any dispute arising from this Agreement. The Parties waive to any other jurisdiction that may correspond to them due to their current or future domiciles, or for any other reason.
Section 13. Appliances
In paragraph d, replace the first sentence with the following:
In Argentina, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela: When IBM accepts Client's order, IBM transfers title to a Machine component upon tradition to Client or Client's lessor.
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Section 14. Cloud Services
In Mexico:
In paragraph e, second sentence delete ", personnel".
Add as a new paragraph i, the following:
i. The Parties acknowledge and agree that, given its nature, the Cloud Services do not imply the provision of IBM personnel nor of personnel of IBM suppliers for the benefit of the Client, and consequently, Cloud Services are not considered as Services or Specialized Works in terms of the Corresponding Labor and Tax Laws.
Section 15. General Terms
In paragraph c:
In Mexico:
In the first sentence replace the word "contractor" with the word "company" and in the last sentence replace the word "contractors" it with the word "providers".
In paragraph f (first sentence), h (second sentence), and i (first sentence):
In Mexico:
Replace the word "contractors" with the word "providers".
In paragraph o:
In Brazil: delete the entire 2nd sentence of "Neither party will bring a legal action arising out of or related to the Agreement more than two years after the cause of action arose".
In paragraph p:
In Mexico: The words "personnel and" are eliminated and the word "contractors" in first and last sentences is substituted with "suppliers".
Add as a new paragraph r to this section:
In Canada: Both parties agree to write this document in English. Les parties ont convenu de rédiger le présent document en langue anglaise.
ASIA PACIFIC
Section 3. Warranties
Add at the end of this section as a new paragraph f:
In Australia: These warranties are in addition to any rights under, and only limited to the extent permitted by, the Competition and Consumer Act 2010.
In Japan: IBM's liability is limited to this paragraph and the Liability and Intellectual Property Protection section, applicable TDs as Client's sole remedy for failure to meet the warranties specified in this section.
In New Zealand: These warranties are in addition to any rights under the Consumer Guarantee Act 1993 or other legislation that cannot be limited by law.
Section 4. Charges, Taxes, Payment, and Verification
In paragraph b. replace the third sentence that starts with "Amounts are due upon receipt…" with the following 2 sentences:
In Hong Kong, Indonesia, Korea, Macau, Malaysia, Philippines, Singapore, and Vietnam: Amounts are due upon receipt of the invoice from IBM and payable within 30 days of the invoice date to an account specified by IBM. If payment is not received within 30 days from the invoice date, IBM may charge a late payment fee on the amount outstanding, calculated on the number of days the payment is received late, at the lesser of: i) 2% for every 30 day period or portion thereof; or ii) the maximum amount permissible by applicable law.
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In Thailand: Amounts are due upon receipt of the invoice from IBM and payable within 30 days of the invoice date to an account specified by IBM. If payment is not received within 30 days from the invoice date, a late payment fee may be applied on the amount outstanding, at the rate of 1.25% per month, calculated on the number of days the payment is received late.
In the first sentence of paragraph c, remove the word "and" before "iv)", and add a semicolon and the following new item "v)":
In India: ; and v) file accurate Taxes Deducted at Source (TDS) returns on a timely basis. If any tax, duty, levy or fee ("Taxes") are not charged on the basis of the exemption documentation provided by the Client and the taxation authority subsequently rules that such Taxes should have been charged, then the Client will be liable to pay such Taxes, including any interests, levies and/or penalties applicable thereon.
In the first sentence of paragraph c, remove the word "and" before "iv)", and replace item iv) and add new item v) with:
In Singapore, Malaysia, Philippines, Thailand, Indonesia, and Vietnam: iv) fully cooperate with IBM in seeking a waiver or reduction of withholding or other tax that Client requests a waiver or reduction; and v) promptly complete, file, and keep current all relevant documents for any such waiver, reductions, or exemptions.
Section 5. Liability and Intellectual Property Protection In paragraph a, add at the end of the first sentence the following:
In Australia: (for example, whether based in contract, tort, negligence, under statute or otherwise) In paragraph a, second sentence after the word "special" and before the word "incidental", add the following:
In Philippines: (including nominal and exemplary damages), moral, Add as a new paragraph after the end of paragraph a (and ensure paragraphs properly reletter):
In Australia: Where IBM is in breach of a guarantee implied by the Competition and Consumer Act 2010, IBM's liability is limited to the repair or replacement of goods or the supply of equivalent goods, or the payment of the cost of replacing the goods or having the good repaired. Where a guarantee relates to the right to sell, quiet possession, or clear title of a good under schedule 2 of the Competition and Consumer Act, then none of these limitations apply.
Section 6. Termination
Add at the end of the section as a new paragraph d:
In Indonesia: The parties waive article 1266 of the Indonesian Civil Code to the extent it requires a court decree for the termination of an agreement creating mutual obligations.
Section 7. Governing Laws and Geographic Scope
In paragraph a, in the first sentence only, replace the phrase, "the country where the transaction is performed (or for IBM or Non-IBM Cloud Services, the laws of the country of Client's business address)" with:
In Cambodia, Laos: the State of New York, United States In Australia: the State or Territory in which the transaction is performed In Hong Kong: the Hong Kong Special Administrative Region of the People's Republic of China In Macau: the Hong Kong Special Administrative Region of the People's Republic of China In Korea: the Republic of Korea, and subject to the Seoul Central District Court of the Republic of Korea In Taiwan: Taiwan
In India: India
In paragraph b, in the second sentence, replace the phrase "the country where the transaction is performed (or for IBM or Non-IBM Cloud Services the country of Client's business address) or, if IBM agrees, the country where the IBM EP or Non-IBM EP is placed in productive use" with:
In Hong Kong: the Hong Kong Special Administrative Region of the People's Republic of China In Macau: the Macau Special Administrative Region of the People's Republic of China In Taiwan: Taiwan
Z125-5831-11_ZZ_02-2023_en Page 16 of 21
In paragraph c, in the first sentence, item ii), after the word "including" and before words "the defense", add:
In Japan: those of Japan laws and
Add at the end of the section as a new paragraph e:
In Cambodia, Laos, Philippines, and Sri Lanka: Disputes will be finally settled by arbitration in Singapore under the Arbitration Rules of the Singapore International Arbitration Center ("SIAC Rules").
In India: Disputes shall be finally settled in accordance with The Arbitration and Conciliation Act, 1996 then in effect, in English, with seat in Bangalore, India. There shall be one arbitrator if the amount in dispute is less than or equal to Indian Rupee five crores and three arbitrators if the amount is more. When an arbitrator is replaced, proceedings shall continue from the stage they were at when the vacancy occurred.
In Indonesia: Disputes will be finally settled by arbitration in Jakarta, Indonesia, administered by the Indonesian National Board of Arbitration established in the year 1977 ("Badan Arbitrase Nasional Indonesia" or "BANI") in accordance with the rules of the Indonesian National Board of Arbitration The arbitration award shall be final and binding on the parties without appeal and shall be in writing and set forth the findings of fact and the conclusion of law.
In People's Republic of China: Either party has the right to submit the dispute to the China International Economic and Trade Arbitration Commission in Beijing, the PRC, for arbitration. The parties agree three arbitrators will be used to resolve any dispute.
In Vietnam: Disputes will be finally settled by arbitration in Vietnam under the Arbitration Rules of the Vietnam International Arbitration Centre ("VIAC Rules"). All proceedings and documents presented will be in the English language.
Section 15. General Terms
In paragraph o, in the second sentence, replace the phrase "two years" with:
In India: three years
Add to the end of this section the following new paragraph r:
In Indonesia: This agreement is made in the English and Bahasa Indonesian language versions. To the extent permitted by the applicable law, the English version will prevail in the event of conflict between such versions.
EUROPE, MIDDLE EAST, AND AFRICA
Section 2. Content and Data Protection
Replace first sentence of paragraph g with the following:
In Switzerland: IBM's Data Processing Addendum (DPA) at http://ibm.com/dpa and the applicable DPA Exhibit apply and supplement the Agreement, if and to the extent the European General Data Protection Regulation (EU/2016/679) (GDPR) or the Swiss Federal Privacy Act (SFPA) apply to personal data contained in Content.
Section 3. Warranties
In paragraph e, replace the fourth sentence that starts with "Non-IBM EPs...", and before the existing last sentence, with the following two sentences:
In Czech Republic, Estonia, and Lithuania: Non-IBM EPs and preview products, or identified non-warranted IBM EPs are provided as-is, without warranties of any kind or liabilities for defects. The parties hereby exclude any liability of IBM for defects beyond the agreed warranties.
Section 4. Charges, Taxes, Payment, and Verification
In paragraph b, add the following to the end of the third sentence:
In Italy: if IBM requests in a written notice to Client.
In Ukraine:, on the overdue amount from the next day after the due date up to the date of actual payment, prorated for each day of delay, at the interest rate of double the discount rate determined by the National Bank of Ukraine (NBU) during the delay period (paragraph 6 of article 232 of Commercial Code of Ukraine does not apply).
Z125-5831-11_ZZ_02-2023_en Page 17 of 21
In paragraph b, replace the third sentence with the following:
In France: Amounts are due and payable within 10 days of the invoice date to an account specified by IBM and late payment fees apply equal to the most recent European Central Bank rate plus 10 points, in addition to debt collection costs of forty (40) euros or, if these costs exceed forty euros, complementary indemnification subject to justification of the amount claimed).
In Russia: Amounts are due upon receipt of the invoice and payable within 30 days of the invoice date through electronic transfer of funds to an account specified by IBM. Late payment fees at the rate of 24% per annum calculated for each day beyond the 30 days may apply.
In paragraph b, add the following to the end of the sixth sentence that starts with "IBM does not give credit…":
In Lithuania:, or except as provided by law
At the end of paragraph b, add the following:
In Italy: In the instance of no payment or partial payment, and also following a formal credit claim procedure or trial that IBM may initiate, in derogation of article 4 of Legislative Decree n. 231 dated October 9, 2002, and according to article 7 of the same Legislative Decree, IBM will notify Client in writing by registered, return receipt mail of late payment fees due.
Section 5. Liability and Intellectual Property Protection In paragraph a, in the first sentence insert the following before the words "the amounts paid":
In Belgium, France, Germany, Italy, Luxembourg, Malta, Portugal, and Spain: the greater of €500,000 (five hundred thousand euro) or
In Ireland and United Kingdom: 125% of
In paragraph a, in the first sentence, replace the phrase "direct damages incurred by Client" with:
In Spain: and proven damages incurred by Client as a direct consequence of the IBM default In paragraph a, insert after the first sentence the following new sentence:
In Slovakia: Referring to § 379 of the Commercial Code, Act No. 513/1991 Coll. as amended, and concerning all conditions related to the conclusion of the agreement, both parties state that the total foreseeable damage, which may accrue, shall not exceed the amount above, and it is the maximum for which IBM is responsible.
In Russia: IBM will not be liable for the forgone benefit.
In paragraph a, in the second sentence, delete the word:
In Ireland and United Kingdom: economic
In paragraph a, replace the second sentence with the following and bold the text:
In Belgium, Netherlands, and Luxembourg: IBM will not be liable for indirect or consequential damages, lost profits, business, value, revenue, goodwill, damage to reputation or anticipated savings, any third party claim against Client, and loss of (or damage to) data.
In France: IBM will not be liable for damages to reputation, indirect damages, or lost profits, business, value, revenue, goodwill, or anticipated savings.
In Portugal: IBM will not be liable for indirect damages, including loss of profit.
In Spain: IBM will not be liable for damage to reputation, lost profits, business, value, revenue, goodwill, or anticipated savings.
Add the following new sentence at the end of paragraph a:
In France: The terms of the Agreement, including financial terms, were established in consideration of the present clause, which is an integral part of the general economy of the Agreement.
In paragraph b, replace "and ii) damages that cannot be limited under applicable law" with the following:
In Germany: ; ii) damages for body injury (including death); iii) loss or damage caused by a breach of guarantee assumed by IBM in connection with any transaction under this Agreement; and iv) caused intentionally or by gross negligence.
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Section 6. Termination
In paragraph a, insert the following at the end of clause i) before "; or":
In Russia: without payment of any damages or penalties to the other party on the basis of early termination In paragraph a, insert the following new sentence at the end of paragraph a:
In Netherlands: The Parties waive their rights under Title 7.1 ('Koop') and clause 7:401 and 402 of the Dutch Civil Code, and their rights to invoke a full or partial dissolution ('gehele of partiele ontbinding') of this Agreement under section 6:265 of the Dutch Civil Code
In paragraph b, delete the sentence:
In Switzerland: Failure to pay is a material breach.
Section 7. Governing Laws and Geographic Scope
In paragraph a, first sentence only, replace the phrase "the country where the transaction is performed (or for IBM or Non-IBM Cloud Services, the laws of the country of Client's business address)" with:
In Albania, Armenia, Azerbaijan, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Former Yugoslav Republic of Macedonia, Georgia, Hungary, Kazakhstan, Kyrgyzstan, Moldova, Montenegro, Romania, Russia, Serbia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan: Austria In Estonia, Latvia, and Lithuania: Finland
In Algeria, Andorra, Benin, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo Republic, Djibouti, Democratic Republic of Congo, Equatorial Guinea, French Guiana, French Polynesia, Gabon, Guinea, Guinea-Bissau, Ivory Coast, Lebanon, Madagascar, Mali, Mauritania, Mauritius, Mayotte, Morocco, New Caledonia, Niger, Reunion, Senegal, Seychelles, Togo, Tunisia, Vanuatu, and Wallis and Futuna: France
In Angola, Bahrain, Botswana, Egypt, Eritrea, Ethiopia, Gambia, Ghana, Iraq, Jordan, Kenya, Kuwait, Liberia, Malawi, Malta, Mozambique, Nigeria, Oman, Pakistan, Qatar, Rwanda, Sao Tome and Principe, Saudi Arabia, Sierra Leone, Somalia, Tanzania, Uganda, United Arab Emirates, West Bank/Gaza, Yemen, Zambia, and Zimbabwe: England
In Liechtenstein: Switzerland
In South Africa, Namibia, Lesotho, and Swaziland: the Republic of South Africa In United Kingdom: England
In paragraph a, add the following new sentence after the first sentence:
In France: The Parties agree that articles 1222 and 1223 of the French Civil Code are not applicable.
Add the following at the end of paragraph a:
In Albania, Armenia, Azerbaijan, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Former Yugoslav Republic of Macedonia, Georgia, Hungary, Kazakhstan, Kosovo, Kyrgyzstan, Moldova, Montenegro, Romania, Russia, Serbia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan: All disputes arising out of this Agreement shall be finally settled by the International Arbitral Centre of the Austrian Federal Economic Chamber (Arbitration Body), under the Rules of Arbitration of that Arbitral Centre (Vienna Rules), in Vienna, Austria, with English as the official language, by three impartial arbitrators appointed in accordance with the Vienna Rules.
Each party will nominate one arbitrator, who will jointly appoint an independent chairman within 30 days or else the chairman will be appointed by the Arbitration Body under the Vienna Rules. The arbitrators will have no authority to award injunctive relief or damages excluded by or exceeding limits in this Agreement. Nothing in this Agreement will prevent either party from resorting to judicial proceedings for (1) interim relief to prevent material prejudice or a breach of confidentiality provisions or intellectual property rights, or (2) determining the validity or ownership of any copyright, patent or trademark owned or asserted by a party or its Enterprise company, or (3) debt collection in amounts below USD 500,000.00.
In Estonia, Latvia, and Lithuania: All disputes arising out of this Agreement shall be finally settled by the Arbitration Institute of the Finland Chamber of Commerce (FAI) (Arbitration Body), under the Arbitration Rules of the Finland Chamber of Commerce (Rules), in Helsinki, Finland, with English as the official language, by three impartial arbitrators appointed in accordance with those Rules. Each party will nominate one arbitrator, who will jointly appoint an independent chairman within 30 days or else the chairman will be appointed by the Arbitration Body under the Rules. The arbitrators will have no authority to award injunctive relief or damages excluded by or Z125-5831-11_ZZ_02-2023_en Page 19 of 21
exceeding limits in this Agreement. Nothing in this Agreement will prevent either party from resorting to judicial proceedings for (1) interim relief to prevent material prejudice or a breach of confidentiality provisions or intellectual property rights, or (2) determining the validity or ownership of any copyright, patent or trademark owned or asserted by a party or its Enterprise company, or (3) debt collection in amounts below USD 500,000.00.
In Afghanistan, Angola, Bahrain, Botswana, Burundi, Cape Verde, Djibouti, Egypt, Eritrea, Ethiopia, Gambia, Ghana, Iraq, Jordan, Kenya, Kuwait, Lebanon, Liberia, Libya, Madagascar, Malawi,, Mozambique, Nigeria, Oman, Pakistan, Palestinian Territory, Qatar, Rwanda, Sao Tome and Principe, Saudi Arabia, Seychelles, Sierra Leone, Somalia, South Sudan, Tanzania, Uganda, United Arab Emirates, Western Sahara, Yemen, Zambia, and Zimbabwe: All disputes arising out of this Agreement shall be finally settled by the London Court of International Arbitration (LCIA) (Arbitration Body), under the LCIA Arbitration Rules (the Rules), in London, UK, with English as the official language, by three impartial arbitrators appointed in accordance with the Rules. Each party will nominate one arbitrator, who will jointly appoint an independent chairman within 30 days or else the chairman will be appointed by the Arbitration Body under the Rules. The arbitrators will have no authority to award injunctive relief or damages excluded by or exceeding limits in this Agreement. Nothing in this Agreement will prevent either party from resorting to judicial proceedings for (1) interim relief to prevent material prejudice or a breach of confidentiality provisions or intellectual property rights, or (2) determining the validity or ownership of any copyright, patent or trademark owned or asserted by a party or its Enterprise company, or (3) debt collection in amounts below USD 500,000.00.
In Algeria, Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Congo Republic, Democratic Republic of Congo, Equatorial Guinea, French Guiana, French Polynesia, Gabon, Guinea, Guinea-Bissau, Ivory Coast, Mali, Mauritania, Mauritius, Morocco, Niger, Senegal, Togo, and Tunisia: All disputes arising out of this Agreement shall be finally settled by the ICC International Court of Arbitration, in Paris (Arbitration Body), under its arbitration rules (the Rules), in Paris, France, with French as the official language, by three impartial arbitrators appointed in accordance with the Rules. Each party will nominate one arbitrator, who will jointly appoint an independent chairman within 30 days or else the chairman will be appointed by the Arbitration Body under the Rules. The arbitrators will have no authority to award injunctive relief or damages excluded by or exceeding limits in this Agreement. Nothing in this Agreement will prevent either party from resorting to judicial proceedings for (1) interim relief to prevent material prejudice or a breach of confidentiality provisions or intellectual property rights, or (2) determining the validity or ownership of any copyright, patent or trademark owned or asserted by a party or its Enterprise company, or (3) debt collection in amounts below USD 250,000.00.
In South Africa, Namibia, Lesotho, and Swaziland: All disputes arising out of this Agreement shall be finally settled by the Arbitration Foundation of Southern Africa (AFSA) (Arbitration Body), under the Rules of the Arbitration of the AFSA (the Rules), in Johannesburg, South Africa, with English as the official language, by three impartial arbitrators appointed in accordance with the Rules. Each party will nominate one arbitrator, who will jointly appoint an independent chairman within 30 days or else the chairman will be appointed by the Arbitration Body under the Rules. The arbitrators will have no authority to award injunctive relief or damages excluded by or exceeding limits in this Agreement. Nothing in this Agreement will prevent either party from resorting to judicial proceedings for (1) interim relief to prevent material prejudice or a breach of confidentiality provisions or intellectual property rights, or (2) determining the validity or ownership of any copyright, patent or trademark owned or asserted by a party or its Enterprise company, or (3) debt collection in amounts below USD 250,000.00.
In Andorra, Austria, Cyprus, France, Germany, Greece, Israel, Italy, Portugal, Spain, Switzerland, and Turkiye: All disputes will be brought before and subject to the exclusive jurisdiction of the following court of competent jurisdiction:
In Andorra: the Commercial Court of Paris.
In Austria: the court of Vienna, Austria (Inner City).
In Cyprus: the competent court of Nicosia.
In France: Commercial Court of Paris.
In Germany: the courts of Stuttgart.
In Greece: the competent court of Athens.
In Israel: the courts of Tel Aviv Jaffa.
In Italy: the courts of Milan.
In Portugal: the courts of Lisbon.
In Spain: the courts of Madrid.
In Switzerland: the commercial court of the canton of Zurich.
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In Turkiye: the Istanbul Central (Çağlayan) Courts and Execution Directorates of Istanbul, the Republic of Turkiye.
In Netherlands: The Parties waive their rights under Title 7.1 ('Koop') and clause 7:401 and 402 of the Dutch Civil Code, and their rights to invoke a full or partial dissolution ('gehele of partiele ontbinding') of this Agreement under section 6:265 of the Dutch Civil Code.
Section 13. Appliances
In paragraph d, the first sentence, add all countries listed in the following after "United States":
In Portugal, Spain, Switzerland, and Turkiye: , Portugal, Spain, Switzerland and Turkiye, Section 15. General Terms
In paragraph i, insert the following at the end of the paragraph:
In Spain: IBM will comply with requests to access, update or delete contact information if submitted to the following address: IBM, c/ Santa Hortensia 26-28, 28002 Madrid, Departamento de Privacidad de Datos.
In paragraph o, add to the end the paragraph:
In Czech Republic: Pursuant to Section 1801 of Act No. 89/2012 Coll. (the "Civil Code"), Section 1799 and Section 1800 of the Civil Code as amended, do not apply to transactions under this Agreement. Client accepts the risk of a change of circumstances under Section 1765 of the Civil Code.
In Bulgaria, Croatia, Russia, Serbia, and Slovenia:
In paragraph o, delete the 2nd sentence that says: "Neither party will bring a legal action arising out of or related to the Agreement more than two years after the cause of action arose".
In paragraph o, add to the end of the second sentence:
In Lithuania:, except as provided by law
In paragraph o, replace the second sentence with:
In Poland: Neither party will bring a legal action arising out of or related to the Agreement more than three years after the cause of action arose, except for an action of non-payment which will be brought no more than 2 years after payment is due.
In paragraph o, second sentence, replace the word "two" with:
In Latvia and Ukraine: three
In Slovakia: four
In paragraph o, add to the end of the third sentence that says: "Neither party is responsible for failure to fulfill its non- monetary obligations due to causes beyond its control":
In Russia:, including but not limited to earthquakes, floods, fires, acts of God, strikes (excluding strikes of the parties' employees), acts of war, military actions, embargoes, blockades, international or governmental sanctions, and acts of authorities of the applicable jurisdiction.
In paragraph o, third sentence, modify the sentence: "Neither party is responsible for failure to fulfill its nonmonetary obligations due to causes beyond its control" as follows:
In Ukraine: Neither party is responsible for failure to fulfill its non-monetary obligations due to causes or regulatory changes beyond its control, including but not limited to import, export and economic sanctions requirements of the United States.
Add the following at the end of the section as new paragraph r:
In Hungary:
r. By entering into this Agreement, Client confirms that Client was sufficiently informed of all the provisions of this Agreement and had the opportunity to negotiate those terms. The following provisions may significantly deviate from the provisions generally applied by Hungarian law and both parties accept those provisions by signing the Agreement: IPPA Acceptance; Content and Data Protection; Warranties; Charges, Taxes, Payment, and Verification; Liability and Intellectual Property Protection; Termination; Governing Laws and Geographic Scope; General Terms, Program License; Term Licenses and Renewal; Full Capacity and Virtualization Requirements; Z125-5831-11_ZZ_02-2023_en Page 21 of 21
Selected Support, CEO (Complete Enterprise Option) Product Categories; Appliances; and Cloud Services.
In Italy:
r. Pursuant to the art. 1341 and 1342 of Italian Civil Code, Client expressly accepts the following articles of this Agreement: IPPA Acceptance; Content and Data Protection; Warranties; Charges, Taxes, Payment, and Verification, including License Verification and Volume Pricing; Liability and Intellectual Property Protection; Termination; Governing Laws and Geographic Scope; General Terms; Program License, including IBM Software Subscription and Support; Term Licenses and Renewal, including Subscription License, Monthly License, Fixed Term License, and Term License Renewal; Full Capacity and Virtualization Requirements, including EPs in a Virtualization Environment (Sub-Capacity or Container Licensing), Sub-Capacity Licensing, Container Licensing, Client Reporting Responsibilities, and Excess Use Resolution; Selected Support; CEO (Complete Enterprise Option) Product Categories; Appliances, including Appliance Services; and Cloud Services.
In Czech Republic:
r. Client expressly accepts the terms of this agreement which include the following important commercial terms: i) limitation and disclaimer of liability for defects (Warranties); ii) IBM's right to verify Client's usage data and other information affecting the calculation of charges (License Verification), iii) limitation of Client's entitlement to damages (Liability and Intellectual Property Protection); iv) binding nature of export and import regulations (Governing Laws and Geographic Scope); v) shorter limitation periods (General Terms); vi) exclusion of applicability of provisions on adhesion contracts (General Terms); and vii) acceptance of the risk of a change of circumstances (General Terms).
In Romania:
r. The Client expressly accepts, the following standard clauses that may be deemed 'unusual clauses' as per the provisions of article 1203 Romanian Civil Code: clauses 3, 4, 5, 7, and 8n. The Client hereby acknowledges that it was sufficiently informed of all the provisions of this Agreement, including the clauses mentioned above, it properly analyzed and understood such provisions and had the opportunity to negotiate the terms of each clause.
Z126-8665-02_US_02-2023_en_SLED Page 1 of 1
International Passport Advantage Agreement
US State, Local, and Education (SLED) Government Contracts Attachment for Subscription License
This Attachment for Subscription License (“Attachment”) govern the license of Programs IBM makes available on a Subscription License basis that Client acquires from IBM or an IBM Business Partner under a State and Local Government Contract with IBM. This Attachment supplements the terms of the IBM International Passport Advantage Agreement Revision 11 (Z125-5831-11) or equivalent agreement, as applicable, between Client and IBM (“IPAA”). Client accepts these terms by the incorporation or attachment to their State and Local contracts with IBM. Capitalized terms not defined in this Attachment are defined in the IPAA.
Subscription License
A Subscription License is a licensing model that gives Client access to a Program and IBM Subscription and Support (S&S) for a term specified in applicable Transaction Documents (TDs). The license term begins and ends as specified in a TD. No more than a 12-month Subscription Term is permitted. IBM will invoice in full upon acceptance of Client’s order. Client will not receive a prorated refund for any unused term.
This Attachment, the IPAA, the US State & Local Government contract, and any applicable Transaction Document(s), are the complete Agreement between the parties regarding transactions by which Client acquires Subscription License or Subscription License Upgrade for a Program, and replaces all prior oral or written communications or commitments between Client and IBM regarding this subject . By entering into this Attachment, including any applicable Transaction Documents, neither party is relying on any representation not specified in this Attachment, the IPAA, or a Transaction Document. Additional or different terms in any written communication from Client (such as a purchase order) are void.
International Business Machines Corporation
International Business Machines Corporation, 1 North Castle Drive, Armonk, NY 10504
IBM Quotation
Attn: Tyler Adams
City of Roseville
Suite 300
316 Vernon Street
ROSEVILLE CA 95678-2653
UNITED STATES
IBM Site Number: 3117955
IBM Agreement Number: 210269
IBM Customer Number: 7792879
Dear Tyler Adams
Thank you for being an IBM Client. We are delighted to provide this quote for IBM offerings.
Worldwide, companies like yours are increasingly demanding more from their information technology infrastructure, increased flexibility, scalability and agility to meet changing business needs. At the same time, they want reduced cost, rapid deployment and investment recovery.
Over the years, our products, services and solutions capabilities have given our Clients the reliability, availability, security, and manageability to improve operations and achieve efficiency while accommodating growth at reduced cost. These characteristics have been and will remain fundamental to the IBM portfolio.
Unless specifically agreed herein or in another signed agreement in writing between you and IBM, the licenses for the Programs and S&S acquired under this Quote / Agreement may not be used to settle or resolve any software license non-compliance by you that occurred prior to the Start Date of this Agreement. Further, unless otherwise agreed to by the parties in writing, the licenses for the Programs and S&S acquired under this Quote / Agreement may not be used as authorization to deploy the Programs prior to the date of your order against this Quote / Agreement. For more information about eligibility and reporting requirements for sub-capacity licensing, please visit https://www.ibm.com/software/passportadvantage/subcaplicensing.html and for more information about eligibility and reporting requirements for container licensing, please visit:
https://www.ibm.com/software/passportadvantage/containerlicenses.html.
This quotation is valid from 06-Sep-2023 and will expire on 30-Sep-2023.
We look forward to your order.
If you need assistance with placing your order or wish to discuss your quotation, please contact the IBM Representative noted below.
Yours sincerely,
MATT Simmons
Phone Number: 1-720-308-4641
Fax Number:
E-mail Address: [email protected]