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HomeMy WebLinkAboutExhibit 3Mioft Microsoft Enterprise Agreement- State and Local — NO SERVICES CUSTOM — Special Reference Pricing Enterprise Agreement number Microsoft Business Agreement number Uo275ra Aeseller to complete Microsoft affiliate to complete This Microsoft Enterprise Agreement is entered into between the following entitles as of the effective date identified below. Each party will notify the other in writing If any of the information in the following table changes. Name of Entity The Stale of Florida, acting by Contact Name Todd McKay and through the Department of Management Services and State Technology Office (This person handles access to online Information, This person also receives notices unless a different contact tar notices s provided in the notices section below. Street Address 4050 Esplanade Way Contact E-mail Address mckaytOdns,state.fl.us (Required for online access) City Tallahassee Slate/Province Phone 850-487-3SI64 FL Country USA Postal Code Fax 750-488-5498 32399 Microsoft Account Manager Name Bab Ward Contracting Microsoft Affiliate MSLI, GP - 6100 Nell "Road, Suite 210 • Rena; Nevada USA 89511-1131 • Dept. 551, Volume l.."censtng If noltcr'S 5liolrlcl be. .soot to someone? of .tome plar e either tl!3n ,tbovt.. c:e 17,ololo the relevant Name of Entity Contact Name Street address Contact E-mail Address City State/Province Phone Country Postal Code Fax Notices to Microsoft ihouid be sent to. MSLi, 13P 6100 Nell Road, Suite. 210 Reno, Nevada USA 89511-1137 Dept. 551, Volume Licensing Coplea should be sent to. Microsoft Law and Corporate Affairs One Microsoft Way Redmond, WA 98052 Volume Licensing Group VLG-USA@Microsoft.com (425) 936-7329 fax UF.;A SLG MBA Microsoft Enterprise Agreement v8.0 (North America) July 1, 2002 Cover Page Page 1 of 24 This agreement consists of (1) this cover page, (2) the attached terms and conditions, (3) :he terms of the Microsoft Business Agreement Identified above (except that the definitions of "you," "we," and "us" in this agreement supersede the definitions for those terms in the Microsoft Business Agreement), (4) the Product List, (5) the product use rights applicable to products licensed under this agreermnt, and (6) any enrollment entered into under this agreement. Effective date. If the first enrollment entered into under this agreement Is given an effective date that is earlier than the date this agreement is signed by us, the effective date of this agreement will be that earlier date. Otherwise, this agreement will be effective on the date it is signed by us. Consulting and Support Services shall not be Included in this agreement, but shall instead tie covered by separate agreement(s) between the parties. By signing below, the parties agree to be bound by the terms of this agreement, and you. represent that you are the entity that signed the Microsoft Business Agreement, or an affiliate of that entity, and that the information you have provided on this cover page is accurate. Cast{ o wr I(*gnhtw'a *1 of 2): Cantr.o lg'hcrosOf1 aftWata Name of Entity The State of Florida, acting by and t ro it the Department of Management MSLI, DP Signal L Signature ,,D, ,(F,---- Pri ed ame William Simon Printed Name ON Printed Title Secretary., Department of Management Services Printed Title C�XCT Ab 700/1 Signature Date i 1r i 1 �: (1 Signature Date {data Microsoft affiliate caunterafpns) MAY 1 8 21)03 Effective Date June t, 2003 CaalarrNrr (Stsptirture 92 of 2): Nacre at Entity The State of Florida, acting by and through the State Technology Office SI tur'a Avg Pafed Name Kimberly Bah mi Printed T1tIo State Chief information Officer r Signature Date Prepared by David Mille SLG MBA Microsoft Enterprise Agreement v6.0 (North America) July 1, 2002 Cover Page APPROVED AS TO FORM ACID LEGALITY ORO Of THE GENERAL COUNSEL IDES GEMS pEPAF1iM t'7 SY Page 2 of 24 Terms and Conditions 1. Definitions. In this agreement, "you" means the entity that has entered into this agreement with us, aild "we" or "us" means the Microsoft entity that has entered into this agreement or an enrollment. The terms "affiliate," "ownership," "product," "Product List," "run" and "use" have the meanings given to them in the Microsoft Business Agreement. In addition, the following definitions apply: "1" anniversary price level" means the volume discount level that is calculated for each product family with respect to certain enrollments pursuant to the terms and conditions of Section 12(3)(2)(F), which such level shall be used in conjunction with the initial price level and 2nd anniversary price level applicable to such enrollments to determine whether the year 3 desktop reference price should be lowered for such enrollments pursuant to the terms and conditions of Section 12(e)(2)(G); "2"d anniversary price level" means the volume discount level that is calculated tor each product family with respect to certain enrollments pursuant to the terms and conditions of Section 12(9)(2)(F), which such level shall be used in conjunction with the initial price level and 1" anniversary price I eves applicable to such enrollments to determine whether the year 3 desktop reference price should be lowered for such enrollments pursuant to the terms and conditions of Section 13(e)(2)(G); "3-year desktop reference price" means, with respect to an enterprise product on an enrollment, the sum of the reference prices of all installment payments for such product during the initial 3-year term of such enrollment; "additional product" means any product other than an enterprise product that an enrolled affiliate chooses to license under its enrollment; "15' anniversary price level" means the volume discount level that is calculated for each product family with respect to certain enrollments pursuant to the terms and conditions o1 Section 13(.9)(2)(F), which such level shall be used in conjunction with the initial price level and 2nd anniversary price level applicable to such enrollments to determine whether the .year 3 desktop reference price should be lowered for such enrollments pursuant to the terms and conditions of Section 13(e)(2)(G); "2"d anniversary price level" means the volume discount level that Is calculated for each product family with respect to certain enrollments pursuant to the terms and conditions of Section 13(9)(2)(F), which such level shall be used in conjunction with the initial price level and 1" anniversary price Isvel applicable to such enrollments to determine whether the year 3 desktop reference price should be lowered for such enrollments pursuant to the terms and conditions of Section 13(e)(2)(G); "3-year desktop reference price" means, with respect to an enterprise product on an enrol ment, the sum of the reference prices of all installment payments for such product during the initial 3-year term of such enrollment; "adjustment multiplier" means, with respect to a product family on the second anniversary of the effective date of an enrollment for which it is determined, a number by which the originally calculated year 3 desktop reference price is multiplied in order to determine the adjusted year 3 desktop reference price, pursuant to the terms and conditions of Section 13(e)(2)(G); "aggregate family desktop count" means, with respect to a particular product family as of a particular annual pricing date, the aggregate number of qualified desktops under all unexpired enrollments for which one or more products in such family are chosen as enterprise products as of such date, including both (i) the original qualified desktops ordered under such unexpired enrollments, plus (II) any additional qualified desktops added pursuant to true up orders; "annual pricing date" means each of the following: (i) the effective date of this agreement (the 'first annual pricing date'); SLG MBA Microsoft Enterprise Agreement v6.0 (North America) July 1, 2002 Terns and Conditions Page 3 of 24 (ii) the first day of the eleventh (11th) full calendar month following such first annual pricing date (the "second annua! pricing date"; and (ill) the first day of the calendar month that occurs every 12 months following the second annual pricing date, until the last enrollment executed hereunder expires or is otherwise terminated For example, if the first annual pricing date is June 1, 2003, then the second annual pricing date shall be May 1, 2003, and each subsequent annual pricing date shall occur on May 1 of each successive calendar year until the last enrollment hereunder expires or is otherwise terminated; "annual price level" means, with respect to a particular product family and as of a particular annual pricing period, the volume discount level, determined pursuant to the terms and conditions of Section 13(e), by which each of the following shall be determined, based upon the aggregate family desktop count for such product family as of the annual pricing date upon which such the determination of such level for such period is made: (1) the initial annual reference prices of enterprise products in such product family for new enrollments with effective dates which occur in such annual pricing period; (ii) the 151 anniversary and 2"d anniversary price levels for certain enrollments; and (Ili) the adjustment multiplier with respect to the year 3 desktop reference price for enterprise products in such product family for previously -executed enrollments whose second anniversary falls in such annual pricing period; "annual pricing period" means each period which: (i) begins on the first annual pricing date, or any anniversary thereof; and (ii) ends twelve (12) full calendar months following the day it begins. For example, if the first annual pricing date is June 1, 2003, then: the first annua' pricing period will run from June 1, 2003 to May 31, 2004; the second annual pricing period will run from June 1, 2004 to May 31, 2005; and so forth. Note that, with the exception of the first annual pricing period, each annual pricing period begins one month following the annual pricing date upon which the annual price level for such period Is determined pursuant to Section 13(e). Such one -month period is necessary for us to calculate the annual price levels and reference prices for the subsequent annual pricing period, and to implement adjustments, If any, to the reference prices of third year installment payments for enrollments whose second anniversary falls in such subsequent period. "available" means, with respect to a product, that we have made licenses for that product available for ordering under the Enterprise Agreement program; "CAL family" means any of the following client access license ("CAL') products, when such products are chosen as enterprise products on an enrollment: (i) Microsoft BackOffice CAL; (ii) Microsoft Core CAL; (iii) Microsoft Windows Server CAL; (iv) Microsoft Exchange Server CAL; (v) Microsoft SQL Server GAL; (vi) Microsoft Systems Management Server CAL; or (vii) Microsoft SharePoint Portal Server CAL; "component platform product" means any of the following enterprise products: (1) Microsoft Office Professional; SLG MBA Microsoft Enterprise Agreement v0.0 (North America) July 1, 2002 Terms and Conditions Page 4 of 24 Microsoft Office Standard; (i11) Microsoft Windows XP Professional Operating System Upgrades; (iv) Microsoft Core CAL; and (v) Microsoft BackOffice CAL; "ending price level" means, with respect to an enterprise product ordered pursuant 'o a particular enrollment, the volume discount level that is used to determine the adjustment multipliers applied to apply to the year 3 desktop reference price, pursuant to the terms and conditions of Subsection 13(e)(2)(G). "enrolled affiliate" means an entity, either you or any one of your affiliates, that has entered into an enrollment under this agreement; "enrollment" means the document that you or your affiliate submits under this agreemenl to sign up for the Enterprise Agreement program and make an Initial selection of products; "enterprise" means the enrolled affiliate and the affiliates it chooses on its enrollment to include in its enterprise; "enterprise product" means any product that we designate as an enterprise product and that an enrolled affiliate chooses to license under its enrollment (enterprise products may only be licensed on an enterprise -wide basis under the Enterprise Agreement program); "Government EA Price List" means the Microsoft State and Local Government Enterpr'se Agreement Price List that is provided on a monthly basis to each reseller, which contains the reference prices for both enterprise products and additional products. "horizon desktop count" means, with respect to a product family on an annual pricing date, the number of qualified desktops that is equal to (i) the total number of qualified desktops enrolled, as of such annual pricing date, in unexpired enterprise enrollments containing an enterprise product belonging to such product family ("current enrollments'), minus (ii) the number of qualified desktops enrolled under current enrollments that are scheduled to expire before the following annual pricing date, if such enrollments are not otherwise renewed. For example, if, as of a particular annual pricing date, there are 100,000 qualified desktops in unexpired enrollments for a product family, and if one or more such enrollments containing a total of 35,000 qualified desktops will expire before the following annual pricing date if not otherwise renewed, then the horizon desktop count with respect to the annual pricing date and product family for which the determination is made shall be 65,000; "horizon price level" means, with respect to a product family during an annual pricing peri•xt, the volume discount level that is used to determine the 3-year desktop reference price of each enterprise product in such product family for enrollments whose effective dates fall during such period, based on the horizon desktop count, pursuant to the terms of Section 13(e)(2)(A); "initial desktop count" means, with respect to a product family in which an enterprise product on an enrollment is included, the aggregate family desktop count for such product family as of the annual pricing date which Immediately precedes the annual pricing period during which the effective date of such enrollment occurs; "initial price level" means, with respect to a product family during an annual pricing period, the volume discount level that is used to determine the year 1 desktop reference price and year 2 desktop reference price of each enterprise product in such product family, pursuant to the terms of Section 13(e)(2)(B); "License" means any one of those offerings identified in the Product List (including standard licenses, and upgrades for desktop operating systems) that provides the right to run the version of the product for which It is ordered; "L&SA" means a License and Software Assurance for any product ordered; "Microsoft BackOffice Client Access License" and "BackOffice CAL" means each of the following client access license products, when purchased together as a suite: SLG MBA Microsoft Enterprise Agreement v6.0 (North America) July 1, 2002 Terms and Conditions Page 5 of 24 (i) Windows CAL; (ii) Exchange GAL; (iii) SQL CAL; and (iv) SMS CAL (note: BackOffice CALsmay solely be purchased hereunder pursuant to enrollments that renew previous enrollments under which BackOffice CAL was included as an enterpris 9 product, and may not be purchased pursuant to any non -renewal enrollments executed hereunder); "Microsoft Core Client Access License" and "Core CAL" means each of the following client access license products, when purchased together as a suite: (i) Windows CAL; (ii) Exchange CAL; (iii) SharePoint CAL; and (iv) SMS CAL; "non -renewal enrollment" means any enrollment executed hereunder that is not a renewal tonrollment; "Office family" means either of the following enterprise products: (i) Microsoft Office Professional; or (ii) Microsoft Office Standard; "order" means an order on a form that is acceptable to the reselier "original true up reference price" means, with respect to an enterprise product at the first, ,second or third anniversaries of an enrollment, respectively, the original per -additional -desktop unit reference price for the true up order due at such anniversary, as determined at the effective date of such enrollment pursuant to Section 13(e); "platform discount" means a discount factor applied when calculating the reference prices for products sold pursuant to platform enrollments, pursuant to the terms of Section 13(e); "platform enrollment" means any enrollment executed hereunder for which each of the following is a chosen enterprise product: (i) either (a) Office Standard or (b) Office Professional; and al) Microsoft Windows Professional desktop operating system; and (iv) either (c) BackOffice CAL or (d) Core CAL; 'premium level discount" means a discount factor applied when calculating the reference prices for products during an annual pricing period for which the initial desktop count and/or horizon desktop count are 40,000 or more, pursuant to the terms of Section 13(e); "product family" means any of the following collections of enterprise products, as defined above: (i) Office family; (ii) Windows family; and/or NO CAL family; "qualified desktop" means any personal desktop computer, portable computer, workstation or similar device that is used by or for the benefit of an enrolled affiliate or any affiliate included in its enterprise and that meets the minimum requirements for running any of the enterprise products. Qualified desktops do not include: (i) any computer that is designated as a server and not used as a personal computer, (ii) any system dedicated to run ONLY Tine -of -business software (e.g., an accounting or bookkeeping program used by an accountant, or a computer -aided design program used by an engineer or architect); or (Ili) any system running an embedded operating system (e.g. Windows 9.x for embedded, Windows XP embedded); "renewal enrollment" means an enrollment executed hereunder pursuant to which a renewal order for enterprise products is made; SLG MBA Microsoft Enterprise Agreement v6,0 (North America) July 1, 2002 Terms and Conditions Page 6 of 24 "renewal order" means the order that an enrolled affiliate submits at the beginning of any renewal term to renew Software Assurance coverage for products previously ordered under its enrollment; "reseller" means a large account reseller authorized by us to resell licenses in an enrolled affiliate's area under the Enterprise Agreement program; "Select Price List" means the Microsoft Select Agreement Price List that is provided on a monthly basis to each reseller, which contains the estimated retail prices for products made available pursuant to the Microsoft select program; "Services" means product support or other services that an enrolled affiliate elects to purchase pursuant to a separate Microsoft Services Agreement; "Software Assurance" means, for any underlying licensed product for which it Is orderE d, the right to upgrade to, and run, the latest version of that product that we make available during the covered period. "true up desktop reference price" means, with respect to an enterprise product at the first, .second or third anniversaries of an enrollment, respectively, the per -additional -desktop unit reference price for the true up order due within 15 days following such anniversary, as determined at the effective date of such enrollment pursuant to Section 13(e); "unexpired enrollment' means, with respect to an annual pricing date, an enterprise enrollment under either (i) this agreement; or (ii) another Microsoft Enterprise Agreement to which either you or one of your affiliates is party, provided that such enrollment shall not have expired or been terminated prior to such annual pricing date; 'Windows family" means the following enterprise product: Microsoft Windows XP Professional desktop operating system (or its successor); 'year 1 desktop reference price" means, with respect to an enterprise product on an enroifinent, the per - desktop reference price that applies to the first of three annual installment payments for such product; "year 2 desktop reference price" means, with respect to an enterprise product on an enrollment, the per desktop reference price that applies to the second of three annual installment payments fo. such product; and 'year 3 desktop reference price" means, with respect to an enterprise product on an enrollment, the per - desktop reference price that applies to the third of three annual installment payments for such product. 2. How the Enterprise Agreement program works. The Enterprise Agreement program gives customers that wish to license one or more of Microsoft's platform products across their enterprise the means to ensure that their entire enterprise will be licensed. You and your affiliates can participate in this program by submitting one or more enrollments under this agreement. On the enrollment, the enrolled affiliate will designate the scope of its enterprise and make the initial selection of enterprise products and any additional products It wishes to license. Each enrollment must Include at least one of those products that we make available to license al an enterprise product. We may reasonably refuse to accept an enrollment. Product support is not included with the licenses under this agreement. Notwithstanding any other provision of this agreement, only enrolled affiliates identified in an enrollment will be responsible for complying with the terms of that enrollment, including the terms of this agreement Incorporated by reference in that enrollment. a. Establishing price levels. The method by which price levels shall be determined as set forth in Section 13(e). b. Deriving prices from price levels. The enrolled affiliate's reference prices shall be determined as set forth in Section 13(e). c. How your enrolled affiliates acquire licenses. Orders under an enrollment will be made out to and submitted to the enrolled affiliate's reseller. We will invoice that resetliar according to the terms in the applicable enrollment. While such enrollment will contain reference prices, the SLG MBA Microsoft Enterprise Agreement 03.0 (North America} July 1, 2002 Terms and Conditions Page 7 of 24 reseller and the enrolled affiliate will determine the enrolled affiliate's actual pricer and payment terms. d. Choosing and maintaining a reseller. Resellers. Each enrolled affiliate that signs an enrollment must choose and maintain a reseller in the enrolled affiliate's area. Resellers are authorized to resell our product licenses, but act independently and have no authority to bind us. Change of reseller. If an entity ceases to be a reseller, the enrolled affiliate must choose a replacement. If an enrolled affiliate intends 10 change Its reseller, a change will oily be effected on the next anniversary of the enrollment effective date, or otherwise with our prior written approval. To change a reseller, the enrolled affiliate must notify us and the former reseller in writing, on a form that we provide, at least 30 days prior to the anniversary on wh ch the change is to take effect. In the case of a change of reseller, the enrolled affiliate is responsible for ensuring that all its obligations to the former reseller are met. 3. How to order enterprise product licenses. a. Placing the initial order. Each enrolled affiliate must submit an initial order for the enterprise products It selects on its enrollment. Except as provided in the following paragraph, the order must be for L&SA for all enterprise products. When Is the enrolled affiliate eligible to order only Software Assurance for an enterprise product? An enrolled affiliate may order Software Assurance for the enterprse products it selects without the need to simultaneously order a License if the enrolled affilieteo or any of the affiliates in its enterprise have obtained perpetual licenses for that product on an enterprise -wide basis under a previous "Enterprise Enrollment" (defined below), and the new enrollment becomes effective no later than the day following the date of expiration of that "Enterpris e Enrollment." The Software Assurance order must be tor the number of qualified desktops covered as of the expiration of that "Enterprise Enrollment." For ail other qualified desktops i icluded in are enrollment submitted under this agreement, the enrolled affiliate must order L&SA. The term "Enterprise Enrollment," as used in this section 3, means (i) a Micro3oft Enterprise Select Agreement; (ii) an enterprise enrollment under a separate Microsoft Select Master Agreement or Microsoft Enterprise Agreement; (iii) any enterprise subscription enrollment entered into under a separate Microsoft Enterprise Subscription Agreement; or (iv) any other enrollment submitted under the Microsoft Enterprise Agreement identified on the cover page. b. Adding new enterprise products. An enrolled affiliate may only add new enterprise products by entering Into a new enrollment. c. Placing annual "true up" orders to account for additional desktops. Each enrolled affiliate must determine the current number of qualified desktops in its enterprise: (I) at each anniversary of the effective date of its enrollment (including anniversaries during any renewal); and, (ii) at the expiration or early termination of its enrollment. ■ If the desktop count has increased. If the number of qualified desktops has increased, the enrolled affiliate must submit an order for L&SA covering those additional desktops. The enrolled affiliate must place the order within 15 days following the anniversary of the enrollment effective date, expiration or termination. ■ If the desktop count has not Increased. If the number has not increases, the enrolled affiliate must submit an update statement confirming this fact on the form we provide within that 15-day period. d. Reorganizations, Consolidations, and Privatizations. If the number of qualified desktops in an enterprise changes by more than ten percent as a result of a reorganization, consolidation or privatization of an enrolled affiliate, we will work with the enrolled affiliate in good SLG MBA Microsoft Enterprise Agreement v6,0 (North America) July 1, 2002 Terms and Conditions Page 8 of 24 faith to deterrnine how to accommodate its changed circumstances in the c:ontext of this agreement. If an enrolled affiliate consolidates with a customer with an existing "Enterprise Enrollment," we will work with the enrolled affiliate in good faith to accommoda:e Its changed circumstances in the context of this agreement. 4. How to order additional product licenses. a. Placing the initial order. Each enrolled affiliate must submit an initial order for the additional products it has selected, if any, on its enrollment. Except as provided in the following paragraph, the order must be for L&SA for all copies of those additional products. When Is the enrolled affiliate eligible to order only Software Assurance for an additional product? An enrolled affiliate may order Software Assurance for additional products it selects without the need to simultaneously order a License if the enrolled affiliate or any of the affiliates It includes in its enterprise has obtained perpetual licenses for those products with Upgrade Advantage, Software Assurance or any similar upgrade protection, and the new enrollment becomes effective no later than one day following the expiration of that upgrade protection. The order may be for up to the number of copies covered by such upgrade protection. An enrolled affiliate may also order Software Assurance alone in any other circumstances expressly permitted in the Product List. For all other copies Included in an enrollment submitted under this agreement, the enrolled affiliate must order L&SA. b. Adding new additional products not previously ordered. Each enrolled affiliate may, during the remainder of the applicable initial enrollment or renewal term, run new additional products under its enrollment that were not part of the initial order. To do so, the enrolled affiliate must order L&SA in the month in which the product is first run, covering all copies of that product run as of the date of the order. For any additional copies of that product run after the date of that order, the enrolled affiliate must submit orders as described In subsection 4(c) (Placing annual "true up" orders to account for additional copies) below. c. Placing annual "true up" orders to account for additional copies. Each enrolled affiliate may, during the remainder of the applicable initial enrollment or renewal term, run additional copies of those additional products it prevlously ordered under subsecticns (a) and (b), provided that the enrolled affiliate places a true up order for L&SA for those additional copies. The enrolled affiliate must submit an order within 15 days after the next anniversary of the effective date of the enrollment (including anniversaries occurring during any renewal) following the date on which those copies were first run. For additional copies first run in the year in which an enrollment expires or is terminated, the enrolled affiliate must submit an order within 15 days following the expiration or termination date. d. Update statements. Each enrolled affiliate must submit an update statement within 15 days following each anniversary of the effective date of Its enrollment, and after expiration or termination of its enrollment, on a form we provide, unless that enrolled affiliate (i) is running only enterprise products under its enrollment, and (ii) it is not otherwise required to submit an update statement under subsection 3(c) (Placing "true up" orders to account for additional desktops) above. 5. How to confirm orders. We will publish information about orders placed by each enrolled affiliate, including an electronic confirmation of each order, on a secure site on the World Wide Web at hilp://licensino.mictosoft.com or a successor site that we Identify. Upon our acceptance of this agreement and enrollrnen:s entered into under this agreement, the contact Identified for this purpose on the cover page will be provided access to this site, 6. License grant — what your enrolled affiliates are licensed to i'un. SLG MBA Microsoft Enterprise Agreement v6.0 (North America) July 1, 2002 Terms and Conditions Page 9 o124 Upon our acceptance of the enrollment, the enrolled affiliate has the following rights during the term of its enrollment. • For enterprise products. The enrolled affiliate may run one copy of the latest version (or any prior version) of each enterprise product, on each qualified desktop. By including affiliates in its enterprise, the enrolled affiliate sublicenses this right to each of them subject to the terms of this agreement. • For additional products. The enrolled affiliate may run the number of copies of inch additional product ordered in the latest version (or any prior version). If an affiliate included in any enrolled affiliate's enterprise runs any copies of an additional product under this agreement, those copies are sublicensed from that enrolled affiliate subject to the terms of this agreement, The right to run any product licensed under an enrollment is temporary until: (i) the enrolled affiliate has paid all installments of the price for that product license and the applicable initial enrollment or renewal term during which that product license was ordered has expired or been renewed, or (ii) the enrolled affiliate Is otherwise entitled to perpetual licenses upon early termination as provided in subsection 12(c) (Termination of an enrollment). Thereafter, the enrolled affiliate will have perpetual .licenses to run the latest version available as of such date of expiration, renewal or termination (or any prior version), of each enterprise product in a number of copies equal to the total number of qualified desktops covered by the enrollment; and each additional product in the number of copies ordered during the applicable initial enrollment term or renewal terra, In the case of early termination as provided in subsection 12(c) (Termination of an enrollment), if an enrolled affiliate chooses only to pay amounts due and payable as of the termination date, thE•n the enrolled affiliate will instead have perpetual licenses for the number of copies specified in subsection 12(d) (Effect of termination or expiration). Any perpetual licenses received through Software Assurance supersede and replace the underlying perpetual licenses for which that Software Assurance coverage was ordered. All perpetual licenses acquired under this agreement remain subject to the terms of this agreement and the applicable product use rights. This agreement, the applicable enrollment, the enrolled affiliate's order confirmation described in section 5 (How to confirm orders) above, and any documentation evidencing transfers of licenses as described in subsection 11(a) (How to transfer), together with proof of payment, will be the enrolled affiliate's evidence of all licenses obtained under its enrollment. 7. How to know what product use rights apply. The product use rights applicable to products licensed under each enrollment are as follows. a. For latest versions available as of an enrollment effective date. For the latest version of any product available on or before the enrollment effective date, the product use rights in effect on the enrollment effective date for that product and version apply. b. For versions and products that become available after an enrollment effective date. For any version of any existing product, or any new product, first made available after the enrollment effective date, the product use rights in effect on the date on which the version or product first becomes available apply (subject to our commitment on use rights below), c. For versions of a product that predate the latest version available as of an enrollment effective date. If an enrolled affiliate is using a version of any product licensed under its enrollment that became available prior to the version that was current on the enrollment effective date, the enrolled affiliate's use of the earlier version will be governed by the product use rights that would apply If the enrolled affiliate were using the version licensed under the SLG MBA Microsoft Enterprise Agreement v8.0 (North America) July 1, 2002 Terms and Conditions Page 10 of 24 enrollment, or in the case of Software Assurance or L&SA, the latest version that is or becomes available at any time during its enrollment. d. Microsoft's commitment on use rights. For all products — use rights fixed by version. We will not change an enrolled affiliate's product use rights under this agreement for any version of a product after it becomes available to that enrolled affiliate under its enrollment. For enterprise products — no detrimental use right changes in new versions. (i) For new versions made available during the initial enrollment term. if we make available a new version of any enterprise product during the initial enrollmen: term and that new version is subject to certain use rights that are more restrictive than those that applied to a prior version under an enrollment that was or became available during the it itial enrollment term, the enrolled affiliate may run that new version without being subject to those certain more restrictive use rights. (ii) For new versions made available during each renewal term. Upon each renewal of Software Assurance for an enterprise product, an enrolled affiliate's use of that product will be governed by the use rights that apply to the latest version of that product available as of the date of that renewal, including any terms lhat are more restrictive than those that applied to a previous version of that product licensed by that enrolled affiliate under its enrollment during the preceding term. However, if during a renewal term we make available a new version of that same enterprise product with certain use rights more restrictive than those use rights that applied to a prior version licensed under an enrollment that was or became available during that same term, the enrolled affiliate may run the new version without being subject to those certain more restrictive use rights. (iil) New features or functionality. The right described in subsections (i) and (ii) above does not apply to product use rights that relate specifically to new features or functione.tity added to a new version. To the maximum extent permitted by Florida law, in lieu of your obligation to indemnify us under various provisions of the product use rights, you will be responsible for any cost or damages arising from any claim to which your Indemnity obligation would otherwise apply. 8. No Services. Notwithstanding any offerings that may exist for our non-govemment customers, services shall not be offered pursuant to this agreement, but may be obtained pursuant to a separate Microsoft Services Agreement which you may choose to enter into. 9. Software Assurance Membership. Throughout the term of its enrollment (including any renewal), each enrolled affiliate, automatically qualifies as a member of Microsoft's Software Assurance Membership program. Membership may entitle the enrolled affiliates to special benefits. For a description of these benefits, an enrolled affiliate should consult its reselier or Microsoft account manager. 10. Making copies of software. a. Copies necessary for internal deployment. Each enrolled affiliate may make as many copies of the products licensed under its enrollment as necessary to distribute the sroducts to the users within its enterprise. All copies of any product must be true and complete copies (Including copyright and trademark notices) and be made from CD-ROMs, disk sets or a network source, acquired from or made available by a Microsoft approved fulfillment source for that product. Each enrolled affiliate may also have a third party make and distribute copies In its place, but the enrolled affiliate is responsible for third -party actions to the same extent it would be If the third party were Its employee. We shall work with you in good faith to resolve any issues you may have SLG MBA Microsoft Enterprise Agreement v6.0 (North America) July f, 2002 Terms end Conditions Page 11 of 24 in making or obtaining licensed copies of products in a timely manner. You anc your affiliates musi make reasonable efforts to make employees, agents and other Individuals running a product aware that the product Is licensed from us and may only be run or transferred subject to the terms of this agreement. b. Copies for training, evaluation and back-up. During the term of its enrollment (including any renewal), each enrolled affiliate and any affiliate included in its enterprise may (i) run up to 20 complimentary copies of any additional product in a dedicated training facility on :heir premises; (ii) run up to 10 complimentary copies of any product that we make available to license as an additional product for a 60-day evaluation period; and (iii) make and retain one complimentary copy of any licensed product for back-up or archival purposes for each of their distinct geographic locations. c. Re -imaging rights. If an enrolled affiliate or any affiliate included within its enterprise has licensed products from an original equipment manufacturer (OEM), through a rated' source or under any Microsoft program other than this Enterprise Agreement program, it may use copies made from the media provided under the enrolled affiliate's enrollment in place of any copies made from the media provided through that separate source, so long as it complies with the following restrictions. (i) The enrolled affiliate must have obtained a separate license from the separate source for each copy being replaced. (ii) The product, language, version and all components (in the case of product ,suites, such as Office) of the copies made from the media provided under an enrollment must be identical to the product, language, version and all components of the copies they replace. (iii) In the case of copies licensed from an original equipment manufacturer (OEM) or through a retail source, in addition to the other conditions outlined in this subsection 10(c), the product type (e,g, upgrade or full license) of the copies made from the media provided under an enrollment must be identical to the product type of the copies they replace. However, an enrolled affiliate may use copies of a desktop operating system made from the media provided under Its enrollment in place of copies of the same desktop operating system obtained from a separate source, even though they may be of different types (i.e. one may be an upgrade and the other a full license), provided that the product, language a.nd version are identical. The use of any copies made under this subsection 10(c) is subject to the terms and use rights provided with the copies being replaced, and nothing in this section creates cr extends any warranty or support obligation. 11. Transferring licenses. a. How to transfer. An enrolled affiliate may transfer perpetual licenses ordered under an enrollment to an affiliate, as defined in the Microsoft Business Agreement, or to an unaffiliated third party in connection with a privatization of the enrolled affiliate, as long as the enroHed affiliate provides us with prior written and signed notice, on a form that we provide, that includes: (i) the applicable enrollment number; (ii) the quantity of licenses being transferred by product and version; (iii) the name, address and contact information of the transferee; and (iv) any other information that we may reasonably request. For all other transfers of licenses to unaffiliated third parties, our written consent is required. We will not withhold our consent unreasonably. No license transfer will be valid unless the transferee accepts in writing the applicable product use rights, use restrictions, limitations of liability, and the transfer restrictions In this section 11. Any transfer made in violation of the requirements or restrictions of this section will be void. b. When transfers are not permitted. An enrolled affiliate may not transfer (i) licenses on a short-term basis, (ii) temporary rights to use products, (ill) Software Assurance coverage, (iv) S1.0 MBA Microsoft Enterprise Agreement v6.0 (North America) July 1, 2002 Terms and Conditions Page 12 of 24 perpetual licenses for any version of any product acquired through Software Assurance separately from the underlying perpetual licenses for which that Software Assurance coverage was ordered; or (v) upgrade licenses for a desktop operating system product separately from the underlying desktop operating system license or from the computer system on which the product is first installed. 12. Term, termination and renewal. a. Term. This agreement will remain in effect for 36 full calendar months following its effective date, unless it is terminated as described below. Each enrollment will have the term provided in that enrollment. b. Termination of this agreement. Either party may terminate this agreement if the other party materially breaches Its obligations under this agreement or the terms and conditions of the Microsoft Business Agreement. Except where the breach is by its nature not curable within 30 days, the terminating party must give the other party 30 days written notice and opportunity to cure prior to termination. Effect of termination. Such termination will merely terminate either party's and its affiliates' ability to enter into new enrollments under this agreement. Such termination will not affect any enrollment not otherwise terminated, and any terms of this agreement app''icable to any enrollment not otherwise terminated will continue In effect with respect to that enrollment. c. Termination of an enrollment - general. Either party to an enrollment may terminate it if the other party materially breaches its obligations under this agreement, including any obligation to submit orders or pay amounts owed (even if such non-payment is caused by non -appropriation of funds). If we terminate an enrollment, we may also terminate this agreement and all other enrollments under it, unless the basis for termination of the enrollment is non -appropriation of funds to the enrolled affiliate, in which event we may only terminate the affected enrollment. Except where the breach Is by its nature not curable within 30 days, the terminating party must give the other party 30 days notice and opportunity to cure. If we give such notice to an enrolled affiliate, we will give you a copy of that notice as well. If an enrolled affiliate ceases to be your affiliate, you must promptly notify us of this fact, and we may terminate its enrollment. d. Termination of an enrollment — non -appropriation of funds. An enrolled affiliate may terminate an enrollment without liability, penalty or further obligation to make payments, but subject to Section 12(e), below (Effect of expiration or termination), if funds to rr ake payments under the enrollment are not appropriated or allocated for such purpose. e. Effect of termination or expiration. Upon expiration or termination of any enrollment, the enrolled affiliate must order licenses for all copies of products it or its affiliates have run under its enrollment for which the enrolled affiliate has not previously submitted an order. Except as provided In the next paragraph, in the event of termination, all unpaid installments of the purchase price for any licenses will immediately become due and payable, and the enrolled affiliate will be entitled to perpetual licenses only after all such payments have been made. If (i) an enrolled affiliate terminates its enrollment as a result of our breach, or (ii) we terminate an enrolled affiliate's enrollment because it has ceased to be your affiliate, or (ill) you terminate an enrollment for non -appropriation of funds, or (Iv) we terminate an enrollment for non-payment due to non -appropriation of funds, then the enrolled affiliate will have the following options. It may immediately pay the total remaining amount due, including all Installments, in which case the enrolled affiliate will have perpetual licenses for all copies of the products it has ordered. As an alternative, it may pay only amounts due and payable as of the termination date, In which case the enrolled affiliate will have perpetual licenses for (i) all copies of all products for which payment has been made in full, and (ii) the number of copies o1 products for which payment has been made in installments that is proportional to the amount that has been paid as of the termination date. SLCI MBA Microsoft Enterprise Agreement v6.O (North America) July 1, 2002 Terms and Conditions Page 13 of 24 f. How to renew an enrollment. We will provide each enrolled affiliate with 60 days prior written notice of expiration of its enrollment or renewal term advising it of its renewal options. An enrolled affiliate may have the option to renew its enrollment for successive terms of 12 or 36 full calendar months. We and our affiliates will not unreasonably reject any renewal order. However, we may make a change to the Enterprise Agreement program that will make it net;essary for you and your enrolled affiliates to enter into new agreements and enrollments. Placing renewal orders. To renew, the enrolled affiliate must submit a renewal order within 30 days after the previous term expired. The renewal order must be for Software Assurance for (I) all enterprise products previously ordered for all qualified desktops in the enrolled affiliate's enterprise as of the date of that renewal order, and (ii) all copies of additional products for which the enrolled affiliate elects to renew Software Assurance. Each renewal term w II start the day following expiration of the prior term. An enrolled affiliate may not add new enterprise products not previously ordered during the initial term as part of its renewal; to license -iew enterprise products It must submit a new enrollment. Consequences of non -renewal. If the enrolled affiliate elects not to renew itfi enrollment or Software Assurance for any additional product under its enrollment, and it otherwise allows Software Assurance for any copies of any products licensed under its enrollment to lapse, then the enrolled affiliate will not be permitted to order Software Assurance for such copies later without first acquiring L&SA. Non -appropriation of funds. The State of Florida's performance and obigation to pay under this contract is contingent upon an annual appropriation by the legislature. Nothing in the preceding sentence shall be construed to modify those sections of this agreement that relate to either (i) the determination and adjustment of reference price; (ii) the eligibility of an affiliate to place Software Assurance renewal orders; or (iii) the termination of enrollments and subsequent issuance of partial license confirmations in the event of an affiliate's non -appropriation of funds. /3. Miscellaneous. a. Entire agreement. The documents identified on the cover page to this agreement constitute the entire agreement concerning the subject matter and supersede any prior or contemporaneous communications. In the case of a conflict between any of these documents that is not resolved expressly in the documents, their terms will control in the order specified in the Microsoft Business Agreement. The terms of any purchase order or any general terms and conditions you or your affiliates maintain, other than those mandatory terms required by statute o • regulation, do not apply. This agreement (except the product use rights and the Product List) can be changed only as required by law or by an amendment signed by both parties. b. Survival. Provisions regarding product use rights, restrictions on use, evidence of perpetual licenses, transfer of licenses, warranties, limitations of liability, confidentiality, compliance verification and obligations on termination or expiration will survive termination or expiration of this agreement or any enrollment. c. Independent contractors. Resellers are Independent contractors who act in their own name and for their own account; they have no authority to bind or impose any obligation or liability upon us. d. Copyright Violation. Except to the extent you are licensed under this agreerni nt, you will be responsible for your violation of our copyright In the products, Including payment of license fees specified in this agreement for unlicensed use. Your liability under this paragraph is subject to the limitations found in Section 788.28(18), Florida Statutes, and nothing in this paragraph shall be deemed to alter the limits set forth in therein. SLa MBA Microsoft Enterprise Agreement v6,0 (North America) July 1, 2002 Terms and Conditions Page 14 of 24 e. Determination of reference prices Reference prices for additional products and enterprise products shall be determined as follows: (1) Determination of pricing for additional products. With respect to a product pool for which additional products are made available, during the term of each enrollment executed hereunder, and provided that you are party to a Microsoft Select Agreement (or its successor) during such term, the volume discount level for Each additional product ordered pursuant to such enrollment in each product pool shall be the same volume discount level that corresponds to such pool in such Select Agreement. For example, if the volume discount level for the Servers pool in the State's Select Agreement is "Level 0," then the volume discount level hereunder for additional products to the Servers Pool shall also be "Level D." (2) Determination of pricing for enterprise products. (A) petermination of horizort tripe level. For each product family and for each annual pricing period, we will determine a horizon price level that shall apply to all enrollments containing enterprise products in such product family which have effectives dates that fall during such pricing period, pursuant to Table 1 in Addendum A, by matching the horizon desktop count for such family (as of the annual pricing date which immediately precedes such annual pricing period) with the column marked "Annual Price Level Name." For example if, as of the annual price date upon which the determination of horizon price level for an annual pricing period is to be made, the horizon desktop count for the Office family is calculated to be between 60,000 and 79,999 qualified desktops, then the horizon price level for the Office family for such annual pricing period shall be the "60K Premium Level." (8} Determination of Initial price level. For each product family and for each annual pricing period, we will determine an initial price level that shall apply to all enrollments containing enterprise products in such product family which have effective dates that fall during such annual pricing period, pursuant to Table 1 in Addendum A, b,, matching the aggregate family desktop count for such family (as of the annual pricing date which immediately precedes such annual pricing period) with the column marked Annual Price Level Name." For example if, as of the annual price date upon which the determinatior of initial price level for an annual pricing period is to be made, the aggregate family desktop count for the Office family is calculated to be between 80,000 and 119,999 qualified desktops, then the initial price level for the Office family for such annual pricing period shall be the "80K Premium Level." (C) Establlshinp cortlponent initial desktop reference Prices fornew enrollments, The Government EA Price List provided to resellers generally contains reference prices for the following common enterprise products: • Microsoft Office Professional; • Microsoft Windows XP Professional Operating System Upgrades; • Microsoft Core CAL; and • Microsoft Desktop Professional (which is a suite composed of the preceding three component products, and the reference price for which is equal to the sum of the three component reference prices less the applicable platform discount). For the purposes of the agreement, the Government EA Price List entry for Microsoft Desktop Professional (or any other enterprise product we might add to such price list that is a combination of component products from different product families) !hall not apply, SI.G MBA Microsoft Enterprise Agreement v6.O (North America) July 1, 2002 Terms and Conditions Page 15 of 24 since this section 13(e) provides an alternate and equivalent means by which the component products of such suite shall be priced. Rather, the components of Microsoft Desktop Professional (or other suite of products from different product families) shall be sold as separate line items to the reseiler. This is necessary in order that the year 3 desktop reference prices which apply to each of the product families which contain the component products may be adjusted separately, as set forth below in Section 13(e)(2)(G). On each annual pricing date, we will establish a list of 3-year desktop reference prices, year 1 desktop reference prices, year 2 desktop reference prices, and year 3 desktop reference prices (collectively, "initial desktop reference prices") for each of the most commonly requested enterprise products, plus any other enterprise products for which you may have requested reference prices. We will provide you with a list of such reference prices. We will also provide your reseller(s) with a fist of such initial desktop reference prices, along with the corresponding confidential reselier costs. Such initial desktop reference prices shall apply to all new enrollments signed during the annual pricing period which immediately follows such annual pricing date, but not thereafter, unless different initial prices are agreed upon in writing between us and an enrolled affiliate (or between us and you) based upon certain exceptions to standard terms including (but not limited to) applied credits and/or deferred payment schedules. initial desktop reference prices and true up desktop reference prices for each enterprise product sold on an enrollment which becomes effective during an annual pricing period shall be calculated, using the formulas below, using each such product's standard license Select reference price (L') (except as noted below with respect to the Windows Professional Upgrade) and one-year Software Assurance Select reference price ("SA') pursuant to the reference prices found on the Select Price List which is in effect as of the annual pricing date upon which the determination is being made for such annual pricing period, and using a Select volume discount level that is determined for each pool based on the respective initial desktop count and horizon desktop counts for the corresponding product family as of such annual pricing date, as follows: Qualified Desktops Select Level 15,000 or more D 6,000 - 14,999 C 2,400 -5,999 13 2,399 or less A For example, If, as of the annual pricing date for which a determination is being made, both the horizon and Initial desktop counts for the Office family are 1;5,000 or more qualified desktops, then the Select reference prices that apply when calc.rlating "L" and "SA" for products in the Office Family, for use in the below formulas, shall ne based upon the "Level D" Select reference prices for such products. For the purposes of determining the value of "L" solely with respect tc the Windows Professional Upgrade, sixty percent (60%) of the Select reference price of such Upgrade shall be used, The following formulas shall apply: (i) for orders of License & Software Assurance on an initial order made pursuant to a non -renewal enrollment, the initial annual reference prices shall be calculated according to the following formulas: SLG MBA Microsoft Enterprise Agreement v6.0 (North America) July 1, 2002 Terms and Conditions Page 16 of 24 Formula for 3-year desktop reference price (using the horizon desktop count to determine the applicable Select volume discount levels): ((L + (3 x SA)) x 0,85 ); less (a) an additional premium level discount Of applicable); less (b) a platform discount (if applicable) pursua nt to the terms and conditions below governing such additional discounts. Formula for both year 1 and year 2 desktop reference prices (using the initial desktop count to determine the applicable select volume discount ,'evels): ((L + (3 x SA ) ] x 0.85 / 3 ); less (a) an additional premium level discount (if applicable); less (b) a platform discount (if applicable) pursuant to the terms and conditions below governing such additional discounts. Formula for year 3 desktop reference price: ( 3-year desktop reference price - year 1 desktop reference price - year 2 desktop reference price ) (ii) for orders of Software Assurance on an initial order made pursuant to a renewal enrollment, the initial annual reference prices shall be calculated according to the following formulas: Formula for 3-year desktop reference price (using the horizon desktop count to determine the applicable select volume discount levels): (( 3 x SA ) x 0.95 ); less (a) an additional premium level discount (if applicable); less (b) a platform discount (if applicable) pursuant to the terms and conditions below governing such additional discounts. Formula for both year 1 and year 2 desktop reference prices (using the initial desktop count to determine the applicable select volume discount levels): ( SA x 0.95 ); less (a) an additional premium level discount (if applicable); less (b) a platform discount (if applicable) pursuant to the terms and conditions below governing such additional discounts. Formula for year 3 desktop reference price: ( 3-year desktop reference price - year 1 desktop reference price - year 2 desktop reference price ) (iii) for orders of License & Software Assurance on the first anniversary true up order made pursuant to either a renewal enrollment or a non -renewal enrollment, the true up desktop reference price shall be calculated according to the following formula (using the initial desktop count to determine the applicable select volume discount levels): ( L + ( 2.5 x SA ) ) x 0.85; less an additional premium level discount (1f applicable); less a platform discount (if applicable) pursuant to the terms and conditions below governing such additional discounts; (iv) for orders of License & Software Assurance on the second anniversary true up order made pursuant to either a renewal enrollment or a non-rene Hal enrollment, the true up desktop reference price shall be calculated according .'o the following formula (using the initial desktop count to determine the applicable -select volume discount levels): ( L + (1.5 x SA ) ) x 0.85; less an additional premium level discount (if applicable); less a platform discount (if applicable) pursuant to the terms and conditions below governing such additional discounts; and SLG MBA Microsoft Enterprise Agreement v6.0 (North America) July 1, 2002 Terms and Condftions Page 17 of 24 (v) for orders of License & Software Assurance on the third annNersary true up order made pursuant to either a renewal enrollment or a non -renewal enrollment, the true up desktop reference price shall be calculated according ,`o the following formula (using the initial desktop count to determine the applicable select volume discount levels): { L + ( 0.5 x SA ) j x 0.85; less an additional premium level discount (if applicable); less a platform discount (if applicable) pursuant to the terms and conditions below governing such additional discounts. The results of each of the above calculations will be rounded to the nearest penny. (D) Additional discounts applied to initial prices for components. After calculating initial prices for each component enterprise product pursuant to the above formulas, the following additional discounts may be applied to such prices, subject to the terms and conditions below: (a) A 'premium level discount" will be applied to an enterprise product, provided that the aggregate family desktop count that applies to such product is equal to or greater than 40,000 qualified desktops. The amount of such premium level discount with respect to Initial price levels shall be determined according to Table 1 in Addendum A, by matching the initial desktop count for the applicable product family (as of the annual pricing date which immediately precedes such annual pricing period) with the applicable column under the heading "Premium Level Discount." The amount of such premium level discount with respect to horizon price levels shall be determined according to Table 1 in Addendum A, by matching the horizon desktop count for the applicable product family (as of the annual pricing date which immediately precedes such annual pricing period) with the applicable column under the heading "Premium Level Discount." Such premium level discount (if any) will be applied before applying a platform discount (if any). For example, if the year 1 annual reference price of a comn7onent product in a non -renewal enrollment, before a premium level Discount and/or platform discount is applied, is $100.00, and if the initial price level for the product family for the applicable annual pricing period is determined to be the 80K premium level, then a corresponding premium level discount of 6% will be applied (i.e. a discount of 6 percent of $100,00, or $6.00), such that the resulting initial annual reference price before the platform discount is applied will be: ($100. 00 - $8.00) _ $94. 00, For another example, if the 3-year reference price of a component product in a non -renewal enrollment, before a premium level discount and/or platform discount is applied, is $300.00, and if the horizon price level for the product family for the applicable annual pricing period is determined to be the 60K premium level, then a corresponding premium level discount of 4% will be applied (i.e. a discount or 4 percent of $300.00, or $12.00), so the resulting 3-year reference price before the platform discount is applied will be: ($300.00 - $12.00) _ $288.00. (b) A 'platform discount" will be applied to component platform products (e.g. Microsoft Office Professional) ordered pursuant to platform SLG MBA Microsoft Enterprise Agreement v6.0 (North America) July 1, 2002 Terms and Conditions Page 18 of 24 enrollments, but not to other enterprise products, if any, ir, such platform enrollments (e.g. a platform discount would not apply to Microsoft Project). Such premium level discount (if any) will bE applied after applying a premium level discount (if any), and shall be as follows: Such platform discounts are as follows: (i) 15% for initial orders of License & Software Assurance on non - renewal enrollments; (li) 5% for initial orders (but not true up orders) of Software Assurance for renewal enrollments; and (ill) 15% for true up orders of License & Software Assurance for both renewal enrollments and non -renewal enrollments, For example, if the year 1 desktop reference price of a component product in a non -renewal platform enrollment, after the premium level discount is applied, is $94.00, then a platform discount .Df 15% will be applied (i.e. 15% of $94.00, or $14.10), so the resulting initial annual reference price will be ( $94.00 - $14.10) _ $79.90. The results of each of the above discount calculations will be rounded to the nearest penny. Platform discounts will be provided so long as they are made generally available to all volume licensing customers. if the amount of such generally available platform discount is either increased, decreased, or eliminated, such increase, decrease or elimination will apply to the annual pricing period which immediately follows such event. (E) Annual provision of reference prices. Table 3 in Addendum A stows the initial desktop reference prices, year 1 desktop reference prices, and year 2 desktop reference prices that shall apply during the first annual pricing period hereunde•. Table 4 in Addendum A shows the true up desktop reference prices that shall apply during the first annual pricing period hereunder. We will provide you with new initial annual reference prices on or before the first day of each subsequent annual pricing period. (F) peferroiggion of 111 ainh/voJsary. 2"`' anniversary. and ending price levels. Upon each annual pricing date, and for each product family, we will both: (!) determine a volume discount level by matching the aggregate family desktop count for such family (as of such annual pricing date) with the column marked 'Annual Price Level Name." pursuant to Table 1 in Addendum A. Such volume discount level shall: • be referred to hereafter as the "1st anniversary price level" with respect to enrollments (if any) for which the first anniversary of their effective dates falls during the annual pricing period which immedlatel i follows such annual pricing date; and • be referred to hereafter as the "2"d anniversary price level" with respect to enrollments (if any) for which the second anniversary of their effective dates falls during the annual pricing period which immediately follows such annual pricing date; and (11) determine an 'ending price lever with respect to enrollments for which the second anniversary of their effective dates falls during the annual pricing period which immediately follows such annual pricing date. Such ending price level shall be SLG MBA Microsoft Enterprise Agreement Terms and Conditions Page 19 of 24 v6.o (North America) July 1, 2002 determined according to the relationship between initial price level, i" anniversary price level, and 2"d anniversary price level, respectively, according to the followi g table: SL4 MBA Microsoft Enterprise Agreement v8.0 (North America) July 1, 2002 Terms and Conditions Page 20 of 24 Annual Prim Level Criteria: f Examples with sample price levels: If the 1" anniversary price level 1e: And the 21" anniversary price level le: then the ending price level will be: Initial Annual Price level 1'1 Anniversary Annual Price Level 2"d Annlveri�ary Annual Brice Level Eliding lud Eprice Level the same as the initial price level any level The initial price level BOK 80K Any Level BOK Higher than the initial price level the same or higher than the first anniversary price level The first anniversary price level BOK 120K or higher 120K or higher 120K Higher than the initial price level lower than the first anniversary price level but higher than the initial level the second anniversary price level 60K 120K 80K 80K Higher than the initial price level the same as or lower than the initial price level The initial price level 80K 120K 80K or EOK i 80K Lower than the initial price level the same or lower than the first anniversary price level The first anniversary price level 60K 40K 40K or D 40K Lower than the initial price level higher than the first anniversary price level but lower than the initial level the second anniversary price level 60K D 40K 40K Lower than the initial price level the same as or higher than the initial price level The initial price level 60K D or 40K 60K or £OK 60K For the purposes of the above table, one annual price level Is "higher" than another volume level if the minimum aggregate family desktop count requirement for such level is greater than that for the second level, and one annual price level Is "lower" than another volume level if the minimum aggregate family desktop count requirement four such level is SLG MBA Microsoft Enterprise Agreement v6.0 (North America) Juiy 1, 2002 Terms and Conditions Page 21 of 24 lower than that for the second level. For example, the 40K Premium Level is lower than the 60K Premium Level, but is higher than Level D. (G) Adfustments to year 3 .depktoD referenoQ prides upon sustained increase of annual price level. The year 3 desktop reference prices of each enterprise product in each enrollment is subject to reduction, provided that the ending price level for the applicable product family has increased, relative to the horizon price level. Such reduction in year 3 desktop reference price will be determined separately for each product family, prior to the second anniversary of each enrollment's effective date, based upon adjustment multipliers determined pursuant to Table 2 in Addendum A. The adjustment multiplier for each applicable product family on an enrollment is determined pursuant to such table by finding the intersection of (i) the column which (,orresponds to the combination of initial price level and horizon price level, and (ii) the line which corresponds to the ending price level. To determine the adjusted year 3 desktop reference price for an enterprise product, the adjustment multiplier applicable to each enterprise product will be multiplied by the originally calculated year 3 desktop reference price for such product, and the resulting amount shall be rounded to the nearest Penny. (H) Additional terms and conditions. You acknowledge and agree that there may be certain instances in which the reference prices of certain enterprise products in certain enrollments executed by affiliates, whether under this Enterprise Agreement or otherwise under a separate Enterprise Agreement or Enterprise Subscription agreement, may be adjusted in ways that vary from the adjustments agreed upon in Section 13(e)(2)(G), pursuant to separate agreement between the enrolled affiliate and us. Such instances may include, but are not limited to, those enrollments: (i) that were executed prior to this enterprise agreement; (11) that contain other enterprise products than those in the three product families defined herein; (ii1) for which we negotiate a special payment schedule such as a "ramped" installment payments; and (iv) for which a special price is negotiated to match the equivalent Select reference price for sufficient licenses, sucr. as to account for unexpired Upgrade Advantage and/or Software Assurance. In the event that, in the absence of this Section 13(e), an enrolled affiliate would otherwise qualify for a lower reference price, for one or more of its chosen enterprise products, than the corresponding reference price(s) for such enterprise product(s) as determined pursuant to the terms and conditions hereof, the lower of the two reference prices for each such enterprise product shall apply. Reference prices are provided only for the purpose of comparison. Actual pricing and payment terms will be determined by agreement between each enrolled affiliate and its chosen reseller. All adjustments to reference prices defined herein will correspond to a proportional adjustment we will make to the reseller's confidential cost. The State shall, in the normal course of business, post this agreement to the State's MyFlorida.com webslte. SLG MBA Microsoft Enterprise Agreement ve.a (North America July 1, 2002 Terms and Conditions Page 22 of 24 Addendum A Table 1: Volume Level Determinations Horizon Desktop Count or Initial Desktop Count Annual Price Level Name EA l Select Price 'List Volume Level Premium • Level Discount Below 40,900 Level D Level 0 NM 40,000 - 59,999 40K Premium Level Level 0 2.0% 60,000.79,999 BOX Premium Level Level D 4.0% 90,000 -119,999 90K Premium Level Level 0 6.0% 1.20,000 - 299,999 120K Premium Level Level D 7.5% 300t000.499,099 300K Premium Level Level D 9,0% 600,000 or more 500K Premium Level Level 0 109% Table 2: Multipliers to apply to "ramped" Year 3 price: lnillal Mee Level -Level D 40K 40K. 8* 60K .BOK 80K MORINO horizon fries 0 8 40K • 40K WI< D 1'b 1.000 �. 1.000 1_000 1.016 1.000 1.000 1.0�10' 1,A�01 outs" 5L 4q m Level 0.940 '0.942 1.0150 O.t 1,c00 00k Levu 0.840" 0.$s 0.939 - oasts 0.941 ' 1.000 0.593 0,839 SOK .Prirllittm Level 0420 0.827 ' 0,879 0.033 0,882 0.638 120K•Premium Level 0.775" 0,784' 0.832 - 0.792 ' 0.838 ; 0;89'1 0,799 0.759 300K Premium Level 0.730 0.740 0,78L 0.750 0.794 0.844 500K •Ftreml um Level 0, /60. 0.712 0.755 0..722 0.765 4 0.013 0.732Mittel t Prise Level sox ' kil( 8A 1201d ixt1K 120K 1264 Horizon: Price Lineal (OK 60K r SDK . b 4014 80K • 10k 1.0pp Level 1.000 V 1.000 1.000 1AD 1.060 1,000 4OKFternluni Level 1,000-1 1.000 1.000 0.948 1.000 1.000 1.500 1.300 60K Premium Laval 0.943 1.000 1,000 0.896 0.945. 1.000 110K Premium Levet 0.807 0.940 • 1,000. 9.843 0.090 0.942 1. 300 120K Premium Level 0,644 0.096 0.002 0.804 0,849 0198 0.954 300K Premium Level 0,802 0.850. 0 904 •• 0.765 0.807 0,854.4 0.90/ 500K Prienium L VeI 0.774 ' 0.020 _... .0.87i •• 0.739 0.i80 TS29 0,876 ' ' irlitiel o!T elrnel ' 120K 8ti0K • 300K it 300K 300K Horizon. Price Level R 120K. 'b 40K SOK 120K 300R. 1...537 a 1 Level D 1.000 1,000 1,060 ' 1,000 1000 1.000 411K Prrmlurn Level 1,000 . 0.949 1,000 1.000 1.000 1.000 1.300 1:000 OQK Pr►*nium LIwN 1.000 0898 0:048 . 1.000. 1.000 1.000 *01K Primlum Level 1.000 0,847 . 0.893 . 0.943 1.00{1 1,0650 1. . 120KPremium Leval 1.000 0.809 0.063.E 0.901 0455 1,000 1,300 300K Premium Leal 0.951 0,771 0,813 0.858 D.910 0.953 1 400 50OKPremium Laval 0.919 0.340' 0,786: 0.830 0.880 0.921 0.-907 InAei pe Levin 40OK 6011K 5q0 500X 5000K P 6004 8001t _ iior glee Level D 4 K 6b - 6011 124 300K 4 5o0k ... r Level 0 1.000 1.000- 1.00( 1.000 1.000 i .600 1..300 40K Priireicrn Le1ie1 0.950. 1.000 1,000 1.000 1.000 1.000 1.000 BOK Premium Level 0,900 • 0.947 1:000 1.000 1.000 1.000 1,000� l.* , 000 iK P►ornium.Laval 0,550 0,995 0.944 ' 1:000 1.000 i K Premium Level 0�13 D,851S 0.903 0.�15¢ 1.000 1.:000 1. 300Kpryrrn1u1;1Leval 0.778 O.B16. 0,881 0.9120.954 1.000 1A°0 60OK Premium Level 0,78r'1 • 0.789 - 0.833 0.8821 0.423 0.988 1.300 SLG MBA Microsoft Enterprise Agreement v8.0 (North America) July 1, 2002 Terms and Conditions Page 23 of 24 Abddendum A (Continued) Table 3: Per -Desktop Reference Price, for Initial Orders Under Enrollment■ During the tat Arnim! Pricing Period The following reference prices are calculated pursuant fo Section 12(d), using an BOK Initial Price Level and an BOK Horizon Price Level, whfrh ere based on the following desktop counts as of the tat annual pricing date, none of whtCh are scheduled to expire by the second annual pricing date: Office Windom CAL From Enterprise Foroamer t6' B4.221 NerhPfatform enlalarienle �••"• neeral entailment, Renewal 6nrolbeerrt5 2,Year • Desktop Relerance • Prise ear 1 quirk, Reernnce Preto Yew 2 Desktop Rehremea Price goer 3 13440300 Reference Price" 3-Year Desktop- flelerence- Price. Yalu 1 Desktop Reference Price Year 2- 8sektop Aeleremce Price Y.err" Dossing neleresce Primes- OfFiarl`A1 4 100.14 100.14 10014 ill07 ASA 4&, pf} 0- era CAL • 210.33 72.15 721e 72,17 141-44� 34, 3 34,e3 i ;14.C2 each* CAL 70.71 „24.24 - 24.24 zit pi 34,33 11.61' 11 61 " 1.6l O Tea 624 3 178.18 172.18 17e.17 27e.82 07•@7 02.e7 , Ir2.88 riftfas laid 443 4a 147.62 147.CR l4T.ft1 230 76,t1i 7$,Ntf. Y6.70" bnerePalrl CAC 77 50 26 B.,E" 25,83 - - 2284 37.61 12.50 12.50 12,61 6 CAL 44 74 14.�1 14.41 14.02 21 43 . 714 7.14 :7.13 W. "WMltiavre.CA1 16140 5350 63.1V 53.80 ' 77.86 26.911 26,00 306,161 32,741 10,02 1202- 10.*2 10.07 s.3s 5.36 5.36 'often!, ProfriN'1onut 101.e0 33,48 6,3 03 5304 116,20 32.40 3240 3240 Platform &eretlelrfe .��• Ncrfenewa1enrelimente - slirelr Desktop Ridefeece Preis Resievalinehiltiotta Pair i Desktop Refti}.mee Price Year 2 ae flop Refenatee Price 74arj DelMhp Refersoce Price •• 1-1( tax Desktop Reference Price Fier 1 Osa►top Rekerenoe Price If earl Desktop RMeranos Pelee Yawl Deoldop Petsr,nee Prfos" daC*Oi+�Il� CAL 286 34 $3.12 ; ee:12 66 12 137.44 4811 4581 7S 6 Cols CAL 164.05 et 35 61.35 81.36 96.26 Woe 36.09 33 06 Exchange CAL 51 Ap 2060 20.60 wed 33.00 11,03 11,03 11,6�t Pep 454.36 131.45 151.48� 151.45 264.60 6821 66 23 6M 04110, 316 376.03 1;�65. 126.e5 128.63 2115.87 7208 72.93 72 05 Shenpotn?CAL 05:fie 21.06 si.011 21.96 36,63 11.Qe 11.63 1:1.57 5at6A1. seal 12,67 1267 1269 30.36 6-78 8..78 6 p SOL CAL 137,10 45.73 46,73 4513 73.01 24.e1 24,t,1 24.64 WIn tow, CAL 27:.88 9.28 0.28 - 920 1227 5.09 6.00 i(fp WMrlews Ploreaelonal 137.33 43.84 45.64 46.65 16644 36.48 33.43 3e.44 r Nola that the Year 3 oeaktop reference Price Is subie l 1c reduction in certain case6, pursuant to the farms and condllion6 41 Section 12(d), Table 4: Per Desktop True Up Reference Prices for Enrollments Under Enrollments During theist Annual Pricing Period iromPirdarm enrollment% Platform Enrollments 1st Armivireary True Up Desktop Relerence Prise 2nd Anniversary Titre tap Desktop Rete eniar Prig* - 3rd Annivereary True Up Desktop Relsruess Price tat Anniversary: True Up Desktop Reference Price Ind Anniversary True Up Dekl*P Reference Price 3rd Anniversary True 1Up Desrlop Relrrimoe Price. 0eckOM10. CAL 2` e. . ' .rt 1O11. tar :02 r 200.03 163,11p Ceres #CQ1I6 1e5.71i 138.E 170.61 144,E 117,54 Eeekanee CAL e7.51t 37.13 45.74 57:30 49 30.73 Mew Pro 40it.0 40004 326,70 . 410.03 348,41 277,77 O#11ar led 40p:ue , 340-67 271.66� 347,7* .- 269.a1 4, 00,91 ehrcePeirrt CAL 71.01 80,79 49.64 61.12 51.81 42.11 WAS CAA, " 41 30.16 23.76 i 32 20 24.45 sot. tie, 1 149. 1 Ism103.47 127.34 4 107.64 37,88 Window, CAL 30. 26.87 20.77 2261 21,73 17.65 83,11' 64.61 MWaWsPnolsosional r 144, ttc.261 75.91 f22.113 SLG MBA Microsoft Enterprise Agreement v6.0 (North America} July 1, 2002 Terms and Conditions Page 24 of 24