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4. PAYMENT OF FEES 4.1 Upon execution of this Agreement, Granicus shall invoice and the Client agrees to pay fifty percent (50%) of the cost of Granicus Software and Professional Services (excluding training) as outlined in the Proposal. 4.2 Upon delivery of any purchased Hardware to Client, Granicus shall invoice and the Client agrees to pay the cost of the Hardware (including shipping costs) in full, as outlined in the Proposal. 4.3 Upon the completion of Phase 1 Training, Granicus shall invoice and the Client agrees to pay the remaining fifty percent (50%) of the cost of Granicus Software and Professional Services (excluding training) as outlined in the Proposal. Upon the completion of Phase I Training, Granicus shall invoice and the Client agrees to pay the cost of Granicus training services as outlined in the Proposal. 4.4 Monthly billing for Managed Services shall begin forty-five (45) days after the receipt of a fully executed Agreement or the receipt of a purchase order for the up-front costs, whichever occurs first, as agreed upon in the Proposal. 4.5 Client agrees to pay all invoices from Granicus within thirty (30) days of receipt of invoice, provided that Client agrees to pay the Managed Services Fee to Granicus on a monthly basis, no later than the first day of each month in advance of services. Granicus, Inc. shall send all invoices to: N,ame: City ehv~ IVILui4 lforxQov Ii'1dbVl _' l~~~ess: fOil Hr'd&I~(;1d ~~ l2u)(,LI2Jcd 01, et 9c.r06~ 4.6 Upon the third renewal of this Agreement, Granicus may include (in which case Client agrees to pay) a maximum increase of the current CPI percentage rate (as found at The Bureau of Labor and Statistics website http://www.bls.gov/CPIJ) or three (3) percent a year on ~lient's Managed Services Fee, whichever is larger. Granicus shall not increase the Managed Services Fee for the first three (3) years of the Agreement. 4.7 Training Cancellation Policies. Granicus' policies on Client cancellation of scheduled trainings are as follows: (a) Onsite Training. For any cancellations within forty-eight (48) hours of the scheduled onsite training, Granicus, at its sole discretion, may invoice the Client for one hundred (100) percent of the purchased training costs and all travel expenses, including any incun-ed third party cancellation fees. Subsequent training will need to be purchased and scheduled at the previously quoted pricing. (b) Online Training. For any cancellations within twenty-four (24) hours of the scheduled online training, Granicus, at its sole discretion, 111ay invoice the Client for fifty (50) percent of the purchased training costs, including any incurred third patty cancellation fees. Subsequent training will need to be purchased and scheduled at the previously quoted pricing. GRANICUS, INC. SERVICE AGREEMENT 3 Version 4.1.2