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City of Lake Elmo, Minnesota <br />August 20, 1993 <br />Page 3 <br />ITEMS NOT INCLUDED: <br />• Determination of hardware needs and installation. <br />• Network installation. <br />• Stationary and forms needs. <br />• Initial data entry and electronic conversion from the old system to the new system. <br />• Software modifications. <br />• Flow of manual information procedures to provide information to the new computer <br />system. <br />• Software upgrades. <br />ANNUAL SUPPORT & FUTURE UPDATES: <br />We will provide software support on an annual basis. The annual cost of software support is <br />15% of the cost of each software module. This fee is prorated for the partial initial year. <br />Listed below is a cost summary for software support through 1995: <br />1993 <br />No charge <br />January 1,1994 <br />$24,000 x 15% @ 12 months <br />$3,600 <br />April 1, 1994 <br />$8,000 x 15% @ 9 months <br />$900 <br />July 1, 1994 <br />$4,000 x 15% @ 6 months <br />$300 <br />September 1, 1994 <br />$4,000 x 15% @ 4 months <br />S200 <br />January 1.1995 <br />$80,000 x 15% @ 12 months <br />$12,000 <br />Software support includes updates which consist of items such as changes in payroll tax <br />tables, sales tax percentages and manual updates. Software support does not include software <br />upgrades. Upgrades are major feature changes to the software. Upgrades will be made <br />available to the City at a standard upgrade charge. <br />If you agree to the terms herein, please sign below and return the enclosed copy to us, <br />authorizing us to purchase the software needed and to proceed with installation and training. <br />Upon receipt of the authorization, we will contact you to arrange the software delivery, <br />installation and training schedule. We look forward to working with you on this project <br />Sincerely, <br />TAUTGES, <br />JSR/ <br />Acknowledged By: <br />Date: <br />& CO., LTD. <br />