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06-102, 3N, National Notification Network, LLC () th ,,) /v 2... 3N SERVICES AGREEMENT f 1) #tJffZ~S-1 7.3 This 3N Services Agreement (this "Agreement") is between National Notification Network, LLC ("3N"), and The City of Cupertino ("Customer") Dated December 6, 2006. 1 3N's Obliaations. 3N will provide Customer with access, as specified in Exhibit A, to the 3N Automated Notification System, which includes use of 3N's proprietary data and communications platform and 3N's manuals to rapidly deliver messages to multiple recipients and multiple communication devices and for processing responses to those messages ("System"). 3N shall provide Customer with customer support including a helpline for assisting Customer with general support and maintenance, and an emergency hotline for assisting Customer in case the System malfunctions or is unavailable. The helpline will be available during normal business hours and the emergency hotline will be available 24 hours a day, 365 days per year. 3N may conduct routine maintenance or install upgrades or modifications to the System during which time the System will be unable to transmit or receive data and Customer's access to the System will be limited. 3N shall provide Customer with prior notice of such routine maintenance, upgrades, and modifications unless there is an emergency in which case no notice shall be given. 2 Customer's Obliaations. Customer will provide 3N with the contact information for the parties that Customer and Customer's authorized users want to communicate with using the System. Customer shall provide 3N with this contact information in a format specified by 3N and shall update the information in a timely manner. Customer shall maintain a copy of all contact information it provides to 3N. Customer shall designate certain employees to be authorized to access and use the System on Customer's behalf. Customer and these authorized users shall at all times use the Services in accordance with this Agreement, 3N's Terms of Use ("Terms of Use") and Privacy Policy ("Privacy Policy") as set forth in Exhibit B and Exhibit C, respectively, and 3N's manuals as each may be updated periodically by 3N. Customer shall cause one of its employees to undergo training by 3n to provide Customer and authorized users with in-house support and to assist in troubleshooting. Customer shall not cause any disturbances, outages or take any other actions that may adversely affect the System. 3 Marketina. Customer agrees, if requested by 3n, to (a) participate in a joint press release with 3N within thirty days of contract signing that references Customer as a 3N customer and will provide a quote from a senior management member of Customer as part of this press release. Final content of press release will be approved by Customer, approval of which will not be unreasonably withheld. Expense related to the creation and distribution of this press release will be borne by 3n. (b) While in good standing as a 3N customer, Customer agrees to allow 3N to reference Customer as a customer using 3N technology on 3N's website and in print copy or marketing collateral. Customer will provide 3N with an approved company logo that 3N may publish on 3n's website and/or marketing collateral to communicate such relationship. This logo will be linked to Customer's website. (c) Customer agrees to allow 3N to reference Customer in media-related interviews conducted by a member of the press and a 3N representative. 4 Fees. Customer will pay 3N for the use of the System at the rates set forth in Exhibit A. If Customer wants 3N services beyond the scope of the descriptions in Exhibit A, Customer and Page I of5 3N will need to agree in writing on such additional services and the additional fees to be charged for such services. Customer agrees to pay all taxes including sales, use, and value- added taxes for its use of the System, except for 3N's income tax. Overdue payments shall bear interest in an amount equal to the lesser of 1.5% per month or the maximum amount permitted by law. 3N reserves the right to disable Customer's access to the System if payments are not received within twenty (20) calendar days following the due date. Customer's account will not be reactivated until the balance due has been paid in full plus a reconnect charge of $1,000. 5 License. 3N grants to Customer and its authorized users a non-exclusive, non- transferable, license (without a right of sublicense) to access and use the System solely for Customer's own business operations in accordance with the terms of this Agreement, Terms of Use, Privacy Policy, and 3N's manuals. Customer may not market, rent, lease, or re-license the Services to any third parties. Customer shall obtain no ownership rights or any other rights, express or implied, in the System other than those specified above. 3N reserves all rights not expressly granted to Customer. 6 Ownership. 3N owns all right, title and interest in and to the System including all intellectual property and proprietary rights therein anywhere in the world. It is expressly understood and agreed that all materials and work created, developed or performed by 3N in the course of providing Customer with access to and use of the System (including, but not limited to, software code, data, drawings, reports and designs) are the exclusive property of 3N. Customer's contact information and all data generated by Customer that resides on servers within the System shall be owned exclusively by Customer. 7 Confidentialitv. Except as required by the California Public Records Act, all information disclosed by a party (the "disclosing party") to the other party (the "receiving party") including, without limitation, all software, customer lists, hardware, designs, trade secrets, code, inventions, algorithms, know-how, ideas, intellectual property, terms of this Agreement, and all other business, financial, technical and other information of a party designated as confidential or proprietary shall be considered proprietary and confidential information ("Confidential Information"). Receiving party agrees not to use or to disclose Confidential Information to any third party other than in performance of its obligations under this Agreement. Receiving party will use reasonable efforts to prevent the disclosure of the disclosing party's Confidential Information to third parties. Receiving party shall have the right to disclose the disclosing party's Confidential Information to its employees and to third-party consultants who have a need to know such Confidential Information in order to perform services pursuant to this Agreement. 8 Representations and Warranties. Each party represents and warrants to the other party that: (i) it has full power and authority to enter into and perform the Agreement, the person signing the Agreement on behalf of each party has been properly authorized and empowered to enter into the Agreement and the Agreement constitutes a valid and binding obligation enforceable in accordance with its terms; and (ii) it owns all right, title, and interest in, or has authority to use in the manner contemplated by the Agreement, all materials, data, and information furnished by it to the other party. 3N represents and warrants that: (a) 3N is the owner or valid licensee of the System and has secured all necessary licenses, consents, permissions and releases for Customer's use of the System; (b) the System does not infringe on the intellectual property rights of any other party. Customer represents and warrants that: (x) it will not access or use the System in violation of any laws; (y) Customer has permission to Page 2 of5 Prepared for: Rick Kitson The City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 United States Date: Oct 6, 2006 Quote Number: NNNQ2164 Quote Valid Until: Dec 31, 2006 p~:# ~.>r4-7 J pio@cupertino.org (408) 777-3200 Description Qty Payment Terms: NET 30 Contract Period: 3 ears List Price Multi Year Discount Ext. Price One Time Fees Set up Fee and One Web-based Training (Level II: 1-500 Members) Set up Fee and One Web-based Training - GIS Annual Fees 3n Annual GIS Module (up to 25,000 Households) 3n InstaCom Ultra (Level II: 1-500 Members) Select System Features: - Simultaneous Voice/Text Messaging - Polling and Quota Notification - Conference Bridge Notification - Dashboard and Ad Hoc Reporting - "On the Fly" Messaging Enterprise Member Manager (Contact Management Integration) System Inclusions Voice Minutes I ncludes for Standard and Emergency Use (Can be used for notification, conference or SMS/IM messages) Emails or Text Messages via SMTP System Administrators Live Operator Access Included with Plan Usage Charges Block of 25,000 minutes for Standard and Emergency Use (Can be used for notification, conference or SMS/IM messages) $1.995.00 100 % $28.995.00 15 % $24,645.75 $10,995.00 15 % $9.345.75 $7,995.00 15 % $6.795.75 5,000 Unlimited Unlimited 5 $6.000.00 Based on the above quote, annual payments are as follows: Year 1: V $40,787.25 Year 2: $16,141.50 Year 3: $16,141.50 3 Year Total: $73,070.25 1. Customer Support is for Primary Administrator only. Additional support or training is priced at $200/hour. 2. InstaCom GIS Module provides 3n GeoNotification Solution to a Single Telephone #. InstaCom Enterprise supports an unlimited number of paths per contact. 3. Client is responsible for supplying the geo-coded telephone database, 3n will assist Customer with initial upload. InstaCom GIS Module supports up to 5 layers. 4. InstaCom GIS may have four geo-coded updates a year. InstaCom Enterprised may be updated as often as needed. 5. Voice Minutes can be used for notification, conference or SMS/IM messages. Additional rates apply for all international calls. 6. Quote suQject to terms & conditions of the 3n Services Agreement. Autho,'zed By' r'ona' Notification Netwo,k, LLC ?ffl~,te. in h-::nd '~:i~ Cinta Putra, Chief Executive Officer Rick Kitson, Public Communications Manager NATIONAL NOTIFICATION NETWORK 505 North Brand Blvd, - Suite 700 - Glendale, CA 91203 Phone: (818)230-9700 - Fax: (818)545-7040 - Email: AE: SKIRCHMEIER Oct 6. 2006 CONFIDENTIAL Page 3n SERVICES AGREEMENT EXHIBIT B TERMS OF USE National Notification Network, LLC, a California limited liability company ("3n"), provides its service to you subject to the following Terms of Use ("TaU") and 3n's Privacy Policy for its Services. In addition, when using specific 3n Services, you and 3n will be subject to any guidelines or rules applicable to these Services, which 3n may communicate to you or post from time to time. These guidelines or rules and 3n's Privacy Policy shall be deemed part of the TaU. DESCRIPTION OF THE SERVICES YOUR CONDUCT WHEN USING THE 3n SERVICES 3n currently provides users with applications and services that comprise an automated system for delivery of messages to multiple recipients and multiple communications devices, and for processing responses to those messages, branded as the 3n Automated Notification System (collectively, the" Services"). Unless explicitly stated otherwise, any new features that augment or enhance the current Services, including any new Services, will be subject to the TaU. You acknowledge and agree to the following with respect to use of Electronic Communications through the Services: You will not use any Electronic Communication for any purpose that is unlawful, abusive, harassing, libelous, defamatory, obscene or threatening; You may not knowingly restrict or inhibit any other user from using and enjoying the Service; WHAT YOU MUST DO TO USE THE SERVICES In order to use the Services, you must obtain access to (a) the World Wide Web, either directly or through devices that access Web-based content, or (b) a standard touch-tone telephone, and pay any service fees associated with such access. 3n is not responsible for providing any equipment necessary to make such connection to the World Wide Web or the telephone system, including a computer and modem, telephone or other access device. You may not impersonate any other person or entity, or misrepresent your affiliation with any other person or entity; You may not knowingly post or transmit any information or software which contains a virus, Trojan horse, worm or other harmful component; In consideration of your use of the Services, you agree to: (a) provide true, accurate, current and complete information about yourself and those whom you may wish to contact (each, a "Contact") using the 3n Automated Notification System (such information being the "Registration Data") and (b) maintain and promptly update the Registration Data to keep it true, accurate, current and complete. If you authorize us to do so, your Contacts will be allowed access to their personal Registration Data to make modifications or changes. If you or any Contact provides any information that is untrue, inaccurate, not current or incomplete, or 3n has reasonable grounds to believe that such information is untrue, inaccurate, not current or incomplete, you understand that any notifications sent via the 3n Automated Notification System may not reach the intended Contact. You will not in any way express or imply that any opinions contained in your Electronic Communications are endorsed by 3n, or that the accuracy of any facts or circumstances described in your Electronic Communications have been verified by 3n, and you authorize 3n to attach a legend to any Electronic Communication sent via the 3n Automated Notification System to this effect; YOUR REGISTRATION INFORMATION MUST BE ACCURATE, CURRENT AND COMPLETE You may not use the 3n Automated Notification System in any way for sending Spam. Spam is unsolicited e-mail directed to people with whom you have no prior relationship, including but not limited to junk mail, chain letters or other unsolicited bulk e-mail, commercial or otherwise or any e-mail sent that 3n reasonably believes constitutes Spam, based on applicable laws and industry practices; ACCESS, PASSWORDS AND SECURITY Similarly, the 3n System is not to be used for voice or text communication via telephone to people with whom you have no prior relationship including, but not limited to, unsolicited sales and marketing communications. You may designate up to the number of users (each, an "Authorized User") under your account, which corresponds to the level of Services specified in Exhibit A, and you may provide and assign access and passwords to such Authorized Users. You will be responsible for the confidentiality and use of your access number(s), password(s), and account number(s). You will be responsible for all electronic communications, including account registration and other account holder information, e- mail, financial and other data ("Electronic Communications") entered through or under your access number(s), password(s) or account number(s). 3n will act as though any Electronic Communications it receives under your access number(s), password(s) or account number(s) will have been sent by you. You agree immediately to notify 3n if you become aware of any loss or theft or unauthorized use of any of your access number(s), password(s) and/or account number(s). ~ Ver. 09/06 National Notification Network, LLC 3n SERVICES AGREEMENT EXHIBIT C PRIVACY POLICY At National Notification Network, LLC ("3n"), protecting the privacy and security of your information is of utmost importance to us. We therefore contract in writing with you to never sell, lease, share, rent, or barter ANY of your personal information to anyone outside of our organization. We value the trust you place in 3n, and maintain strict privacy policies. We are committed to providing our customers and users with a secure environment and state of the art technologies to safeguard their information. In the event that you terminate your customer relationship with us, or become an inactive customer, 3n will continue to adhere to the policies and practices described in this notice. Information We Collect About You When you visit our Web site, and as your trusted notification service provider, we collect, retain and use non-public personal information about our potential, current and former customers. We are likely to record two kinds of information: Non-personal statistical information collected in aggregate. This is anonymous information on subjects such as: how many visitors come to our Web site, how they navigate through the site, which browsers they use to visit the site, etc. Personal information that you knowingly supply to us. When you sign up for our products and services or register on our Web site to access our product demo or to access your account information, 3n will collect personal information that will help us to identify you, authenticate you, and provide you with better service. This information is called "personally identifiable information" and is used to associate usage information with a specific individual or entity. Examples of personally identifiable information are: customer name, address, telephone number, e-mail address, account number, etc. We Do Not Sell, Disclose, or Trade Personal Customer Information 3n will NOT sell, disclose or trade your personal information to any third party, except as required by law. We will disclose personally identifiable information to government officials and law enforcement agencies when it is required by law (e.g., in compliance with a subpoena or court order) or if we believe, in good faith, that such action is appropriate and necessary to protect and defend the rights of 3n, or to protect the safety of 3n users and the general public. Because of the uncertain regulatory environment associated with privacy issues, we may also be forced to disclose personally identifiable and other information to the government. We Protect Your Information The protection of your non-public personal information is of utmost importance to us. We maintain strict practices and procedures to safeguard your privacy in accordance with this privacy policy. We restrict employee access to customer information to only those who have a business reason to know such information, and we educate our employees about the importance of confidentiality and customer privacy. Ver 09/06 Security It is possible that Electronic Communications may be accessed by unauthorized third parties when communicated between you and 3n using the Internet, other network communications facilities, telephone or any other electronic means. All transfer of personal information on 3nonline.net is secured by encrypted user names and passwords, and the industry standard Secure Sockets Layer (SSL) protocol. SSL prohibits other Web users from gaining access to your personal information, and helps protect against the loss, misuse, and alteration of your information. Children 3n will not knowingly collect personally identifiable information from children under the age of 18 without the consent of a parent or guardian. Moreover, we require children to use 3n system only with the permission of and in conjunction with a responsible adult, i.e., a parent or guardian. Changes to Privacy Policy We reserve the right to change or update this Privacy Policy. When we make any such changes, you will find a message on our Home Page and a link to this page. Linked Web Sites 3n Web site contains links to various other Web sites. Please be aware that these other sites may have privacy policies that differ from 3n's. 3n is in no way responsible for either the content that appears on linked sites or your privacy once you have linked to other sites. Additional Information Questions regarding this Privacy Policy or the security practices of 3n should be directed to the 3n Privacy and Security Administrator by e-mailingsecurity@3nonline.com ~ National Notification Network, LLC 3n NATIONAL NOTIFICATION NETWOR folLrzrv STtf-7 :S December 13, 2006 Rick Kitson City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Dear Mr. Kitson, Enclosed is an executed 3n Services Agreement with signatures from our CEO, Cinta Putra and VP of Sales, Mark Bell. Please do not hesitate to contact us should you have any questions. Thank you for your time and business. Best Regards, ~ Steve Kirchmeier Senior Executive VP SK/lgd .505 N. Brand Blvd., Suite 700 Glendale, CA 91203. p: (888) 366-4911 . f: (818) 545-7040. www.3nonline.com