HomeMy WebLinkAboutP-21-095 Kronos Inc. Agreement.pdf CO� � County of Fresno
INTERNAL SERVICES DEPARTMENT
y /. Facilities• Fleet•Graphics• Purchasing •Security•Technology
PROCUREMENT AGREEMENT
Agreement Number P-21-095
July 22, 2021
This Procurement Agreement (`Agreement") is entered into between the County of Fresno ("County" or
"Customer-) and Kronos Incorporated ("Contractor"or"Kronos-)for the supply of the Workforce Central
SaaS Telestaff Applications. Equipment, and services related thereto in accordance with the text of this
Agreement. and its Attachments.
1. ORDER OF PRECEDENCE: The Attachments listed below are hereby incorporated into and made part of
this Agreement. In the event of conflict among the Attachments and the terms of this Agreement, the terms
of this Agreement shall prevail.
Attachment A- Kronos Workforce Central - Software as a Service Terms and Conditions
Attachment B - Kronos Sales Order dated June 25, 2021
2. TERM: This Agreement shall become effective retroactively on March 31, 2021, and shall remain in effect
through March 30, 2024.
3. EXTENSION: This Agreement may be extended for two (2) additional one (1)year periods by the mutual
written consent of all parties.
4. CONTRACTOR'S SERVICES: County is ordering the products and services as described in Attachment
"B" attached, at the rates set forth in Attachment"B".
5. ORDERS: Orders will be placed on an as-needed basis by County under this Agreement.
6. PRICES: Prices for the Services shall be firm for the Initial Term of the Agreement.
7. MAXIMUM: In no event shall compensation paid for services performed and/or fees paid under this
Agreement exceed One Hundred Forty-Nine Thousand, Two Hundred Twenty Dollars ($149,220.00).
8. ADDITIONAL ITEMS: The County reserves the right to request additional items to this Agreement as
deemed necessary by both parties. Such additions shall be made in writing but won't be effective unless
signed by both parties.
9. DELIVERY: The F.O.B. Point shall be the destination identified on the Order Form. All orders shall be
delivered complete as agreed to by the parties. All orders placed before Agreement expiration shall be
honored under the terms and conditions of this Agreement.
10. INVOICING: An itemized invoice shall be mailed in duplicate to ProbationInvoices@fresnocountyca.gov
and Fresno County Probation, 3333 E. American Ave.. Suite B Fresno, CA 93725 in accordance with
invoicing instructions included in each order referencing this Agreement. The PO number, if provided to
Contract by County for each order, will appear on all shipping documents and invoices. Invoice terms shall
be Net 45 Days,
333 W.Pontiac Way,Clovis,CA 93612/(559)600-7110
' The County of Fresno is an Equal Employment Opportunity Employer'
PROCUREMENT AGREEMENT NUMBER: P-21-095 Page 2
July 22, 2021
11. INVOICE TERMS: Net forty-five (45) days from the receipt of invoice.
12. LAWS AND REGULATIONS_ The Contractor shall comply with all laws, rules and regulations whether
they be Federal, State or municipal, which may be applicable to Contractor's business, equipment and
personnel engaged in service covered by this Agreement.
13. NON-ALLOCATION OF FUNDS—The terms of this Agreement, and the services to be provided
hereunder, are contingent on the approval of funds by the appropriating government agency. Should
sufficient funds not be allocated, the services provided may be modified. or this Agreement terminated, at
any time without penalty by giving Contractor thirty (30)days advance written notice.
14, AUDITS AND RETENTION: Contractor shall maintain in good and legible condition all order forms and
invoices issued under this Agreement. Such records shall be complete and available to Fresno County, the
State of California, the federal government or their duly authorized representatives for the purpose of audit,
examination, or copying during the term of the Agreement, and for a period of at least three years following
termination of the Agreement. Such records must be retained in the manner described above until all
pending matters are closed. If this Agreement exceeds ten thousand dollars ($10,000.00). CONTRACTOR
shall be subject to the examination and audit of the California State Auditor for a period of three (3) years
after final payment under contract (Government Code Section 8546.7).
15. LIABILITY: The Contractor agrees to indemnify, save and hold harmless, and at County's request
defend the County, its officers, agents and employees from any and all claims for damage or other liability,
including costs, expenses (including attorney's fees and costs), causes of action, claims or judgments
resulting out of or in any way connected with Contractors performance or failure to perform by Contractor, its
agents, officers or employees under this Agreement, and from any and all costs and expenses (including
attorney's fees and costs), damages, liabilities, claims, and losses occurring or resulting damage to the
extent caused Contractor employees to any person, firm or corporation who may be injured or damaged by
the performance, or failure to perform. of Contractor. its officers, agents, or employees under this Agreement.
All liability arising out of this section will be subject to the liability cap in section 14 (Limitation of Liability) of
Attachment A.
16. INSURANCE: Without limiting the COUNTY's right to obtain indemnification from CONTRACTOR or any
third parties, CONTRACTOR, at its sole expense. shall maintain in full force and effect, the following
insurance policies or a program of self-insurance through out the term of the Agreement:
A. Commercial General Liability: Commercial General Liability Insurance with limits of not less than Two
Million Dollars ($2,000,000.00) per occurrence and an annual aggregate of Four Million Dollars
($4,000,000.00). This policy shall be issued on a per occurrence basis. COUNTY may require specific
coverages and any insurance deemed necessary because of the nature of this contract however no
additional coverages or insurance will be binding on Contractor unless approved in writing by both
parties. County may terminate this agreement in the event Contractor rejects a change in coverage or
insurance by the County.
In the event the CONTRACTOR purchases an Umbrella or Excess insurance policy(ies)to meet the
"Minimum Limits of Insurance," this insurance policy(ies) shall -follow form-and afford no less coverage
than the primary insurance policy(ies). In addition, such Umbrella or Excess insurance policy(ies) shall
also apply on a primary and non-contributory basis for the benefit of the COUNTY, its officers, officials,
employees, agents and volunteers
B. Automobile Liability: Comprehensive Automobile Liability Insurance with limits of not less than One
Million Dollars ($1,000,000.00) per accident for bodily injury and for property damages. Coverage should
include any auto used in connection with this Agreement.
C. Worker's Compensation: A policy of Worker's Compensation insurance as may be required by the
California Labor Code.
D. Cyber liability: Cyber Liability Insurance, with limits not less than S2,000,000 per occurrence or claim,
$2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is
undertaken by CONTRACTOR in this Agreement and shall include, but not be limited to. claims involving
infringement of intellectual property. including but not limited to infringement of copyright. trademark.
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trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic
information, release of private information, alteration of electronic information, extortion and network
security. The policy shall provide coverage for breach response costs as well as regulatory fines and
penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.
E. Technology Professional Liability (Errors and Omissions): Technology professional liability (errors and
omissions) insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence.
Coverage must encompass all of the Contractor's obligations under this Agreement, including but not
limited to claims involving Cyber Risks.
Definition of Cyber Risks. "Cyber Risks" include but are not limited to (i) Security Breaches, which may
include Disclosure of Personal Information to an Unauthorized Third Party; (ii) breach of any of the
Contractor's obligations under Section#of this Agreement; (iii) infringement of intellectual property,
including but not limited to infringement of copyright, trademark, and trade dress; (iv) invasion of privacy,
including release of private information; (v) information theft; (vi) damage to or destruction or alteration of
electronic information; (vii) extortion related to the Contractor's obligations under this Agreement
regarding electronic information, including Personal Information; (viii) network security; (ix)data breach
response costs, including Security Breach response costs; (x) regulatory fines and penalties related to
the Contractor's obligations under this Agreement regarding electronic information, including Personal
Information; and (xi)credit monitoring expenses.
Additional Requirements Relating to Insurance:
Contractor shall obtain endorsements to the Commercial General Liability and Umbrella liability insurance
naming the County of Fresno. its officers, agents, and employees, individually and collectively, as additional
insured, but only insofar as the operations under this Agreement are concerned. coverage for additional
insured shall apply as primary insurance and any other insurance, or self-insurance, maintained by County,
its officers, agents and employees shall be excess only and not contributing with insurance provided under
Contractor's policies herein. This insurance shall not be cancelled or changed without a minimum of thirty
(30) days advance written notice given to County.
Contractor hereby waives its right to recover from County, its officers, agents, and employees any amounts
paid by the policy of worker's compensation insurance required by this Agreement_ Contractor is solely
responsible to obtain any endorsement to such policy that may be necessary to accomplish such waiver of
subrogation, but Contractor's waiver of subrogation under this paragraph is effective whether or not
Contractor obtains such an endorsement.
Upon request, Contractor shall provide certificates of insurance and endorsement as stated above for all of
the foregoing policies, as required herein, to the County of Fresno, Chief Probation Officer, 3333 E.
American Ave., Suite B Fresno, CA 93725, stating that such insurance coverage has been obtained and is
in full force: that the County of Fresno, its officers, agents and employees will not be responsible for any
premiums on the policies; that such Commercial General Liability and Umbrella Liability insurance names the
County of Fresno, its officers, agents and employees, individually and collectively, as additional insured but
only insofar as the operations under this Agreement are concerned; that such coverage for additional insured
shall apply as primary insurance and any other insurance, or self-insurance, maintained by County, its
officers, agents and employees, shall be excess only and not contributing with insurance provided under
Contractor's policies herein; and that this insurance shall not be cancelled or changed without a minimum of
thirty (30) days advance, written notice given to County.
In the event Contractor fails to keep in effect at all times insurance coverage as herein provided, the County
may, in addition to other remedies it may have, suspend or terminate this Agreement upon the occurrence of
such event.
All policies shall be with admitted insurers licensed to do business in the State of California. Insurance
purchased shall be purchased from companies possessing a current A.M. Best, Inc. rating of A FSC VII or
better.
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17. COMING ON COUNTY PROPERTY TO DO WORK: Contractor agrees to provide maintain and furnish
proof of Comprehensive General Liability Insurance with limits of not less than $500,000 per occurrence.
18. INDEPENDENT CONTRACTOR: In performance of the work, duties and obligations assumed by
Contractor under this Agreement, it is mutually understood and agreed that Contractor, including any and all
of Contractor's officers, agents, and employees will at all times be acting and performing as an independent
contractor, and shall act in an independent capacity and not as an officer. agent, servant, employee, joint
venturer, partner, or associate of the County. Furthermore, County shall have no right to control or supervise
or direct the manner or method by which Contractor shall perform its work and function. However, County
shall retain the right to administer this Agreement so as to verify that Contractor is performing its obligations
in accordance with the terms and conditions thereof. Contractor and County shall comply with all applicable
provisions of law and the rules and regulations, if any, of governmental authorities having jurisdiction over
matters the subject thereof.
Because of its status as an independent contractor, Contractor shall have absolutely no right to employment
rights and benefits available to County employees. Contractor shall be solely liable and responsible for
providing to, or on behalf of, its employees all legally-required employee benefits. In addition, Contractor
shall be solely responsible and save County harmless from all matters relating to payment of Contractor's
employees, including compliance with Social Security, withholding, and all other regulations governing such
matters. It is acknowledged that during the term of this Agreement, Contractor may be providing services to
others unrelated to the County or to this Agreement.
19. NON-ASSIGNMENT: Neither party shall assign, transfer or sub-contract this Agreement nor their rights
or duties under this Agreement without the written consent of the other party. Notwithstanding the foregoing,
Contractor may assign this Agreement without the County's consent but with written notice in conjunction
with a merger, sale, consolidation or other corporate form of reorganization involving a transfer of all, or
substantially all, of the stock or assets.
20. GOVERNING LAWS: This Agreement shall be construed, interpreted, and enforced under the laws of
the State of California. Venue for any action shall only be in County of Fresno.
21. ELECTRONIC SIGNATURES: The parties agree that this Agreement may be executed by electronic
signature as provided in this section.
A. An -electronic signature" means any symbol or process intended by an individual signing this Agreement
to represent their signature, including but not limited to (1)a digital signature; (2) a faxed version of an
original handwritten signature; or(3) an electronically scanned and transmitted (for example by PDF
document) of a handwritten signature.
B. Each electronic signature affixed or attached to this Agreement (1) is deemed equivalent to a valid
original handwritten signature of the person signing this Agreement for all purposes, including but not
limited to evidentiary proof in any administrative or judicial proceeding, and (2) has the same force and
effect as the valid original handwritten signature of that person.
C. The provisions of this section satisfy the requirements of Civil Code section 1633.5. subdivision (b), in
the Uniform Electronic Transaction Act (Civil Code, Division 3, Part 2, Title 2.5, beginning with section
1633.1).
D. Each party using a digital signature represents that it has undertaken and satisfied the requirements of
Government Code section 16.5. subdivision (a), paragraphs (1)through (5), and agrees that each other
party may rely upon that representation.
This Agreement is not conditioned upon the parties conducting the transactions under it by electronic means
and either party may sign this Agreement with an original handwritten signature.
22. TERMINATION: The County reserves the right to terminate this Agreement upon thirty (30) days wntten
notice to the Contractor. In the event of such termination, the Contractor shall be paid for satisfactory
services or supplies provided to the date of termination.
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Please acknowledge your acceptance by returning all pages of this Agreement to my office via email.
Please refer any inquiries in this matter to Crystal Nino, Purchasing Technician, at 559-600-7113 or
cnino(aDfresnocountVca.gov.
FOR THE COUNTY OF FRESNO
Gary COrnueIIe Digitally signed GaryC ' e
Date:2021.07.23 -070
07:54:26-070'
Gary E, Cornuelle
Purchasing Manager
333 W, Pontiac Way
Clovis, CA 93612
GEC:cn
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PROCUREMENT AGREEMENT NUMBER: P-21-095 Page 6
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CONTRACTOR TO COMPLETE:
Company: Kronos Incorporated, a UKG Company
Type of Entity:
❑ Individual ❑ Limited Liability Company
❑ Sole Proprietorship ❑ Limited Liability Partnership
® Corporation ❑ General Partnership
900 Chelmsford Street Lowell MA 01851
Address City State Zip
T: 978-250-9800 F: 978-367-5900 bryan.driscoll@ukg.com
TELEPHONE NUMBER FAX NUMBER E-MAIL ADDRESS
Print Name& Gerard (Gerry) Rufo
contractor
Title: Print Name&Title:
nowSlgnad by- 7/22/2021 1 1:41 PM EDT
orcara�eaT�F-rs..
Signature: Signature:
ACCOUNTING USE ONLY
ORG No.: 34300600
Account No_: 7295
Requisition No.: 3430210242
(0212021)
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PROCUREMENT AGREEMENT NUMBER: P-21-095 Attachment Page 1 of
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ATTACHMENT "A"
WORKFORCE CENTRAL—SOFTWARE AS A SERVICE
TERMS AND CONDITIONS
Customer and Kronos Incorporated ("Kronos")agree that the terms and conditions set forth below shall apply to the
Kronos supply of the commercially available version of the Workforce Central SaaS Applications in Kronos'hosting
environment, the services related thereto, and the sale or rental of Equipment(if any) specified on a Kronos Order
Form. The Applications described on the Order Form shall be delivered by means of Customer's permitted access to
the Kronos infrastructure hosting such Applications.
Kronos and Customer hereby further agree that Kronos and/or its direct and indirect majority owned subsidiaries may
enter into orders with Customer and/or its direct and indirect majority owned subsidiaries subject to the terms and
conditions of this Agreement. By signing and entering into an Order Form that expressly references this Agreement,
each such subsidiary of Kronos and/or Customer will be deemed to have agreed to be bound by the terms and
conditions of this Agreement and all references in this Agreement to"Kronos"shall be references to the applicable
Kronos entity entering into the order,and all references in this Agreement to"Customer'shall be references to the
applicable Customer entity entering into the order.
1. DEFINITIONS
"Acceptable Use Policy"means the Kronos policy describing prohibited uses of the Services as further described at:
h=s:/Iwww.kronos.com/policies/acceptable-use
"Agreement"means these terms and conditions and the Order Form(s).
"Application(s)"or"SaaS Application(s)"means those Kronos software application programs set forth on an Order
Form which are made accessible for Customer to use under the terms of this Agreement.
"Billing; Start Date" means the date the billing of the Monthly Service Fees begin to accrue as indicated on the
applicable Order Form. Notwithstanding, Implementation Services provided on a time and material basis are billed
monthly as delivered. The Bilging Start Date of the Monthly Service Fees for any Services ordered by Customer after
the date of this Agreement which are incremental to Customer's then-existing Services shall be the date the applicable
Order Form is executed by Kronos and Customer.
"Cloud Services" means those services related to Customer's cloud environment as further described at:
hHp://www.ktion.cls_.com.producWworkforce-central-c loud/cloud-iruidelines.aspx
"Confidential Information"means any non-public information of a party or its Suppliers relating to such entity's
business activities,financial affairs,technology,marketing or sales plans that is disclosed pursuant to this Agreement
and reasonably should have been understood by the receiving party,because of(i)legends or other markings,(ii)the
circumstances of disclosure or (iii) the nature of the information itself, to be proprietary or confidential to the
disclosing party or its Suppliers.
"Customer Content" means all content Customer, or others acting on behalf of or through Customer, posts or
otherwise inputs into the Services.
"Documentation" means user manuals published by Kronos relating to the feature, and functionality of the
Applications.
"Equipment"means the Kronos equipment specified on an Order Form.
"Implementation Services" means those professional and educational services provided by Kronos to set up the
cloud environment and configure the Applications. Unless otherwise set forth on an Order Form as "a la carte"
services (supplemental fixed fee, fixed scope services) or "bill as you go" services (time and material services
described in a Statement of Work),Kronos will provide,as part of the Monthly Service Fee for the Applications,the
fixed fee, fixed scope Implementation Services described in the Services Implementation Detail set forth at:
https://www.kronos.com/wfc-saas-implementation-guideline-details-flat-fee
"Initial Term" means the initial billing term of the Services as indicated on the Order Form. The Initial Term
commences on the Billing Start Date. Customer may have access to the Services prior to the commencement of the
Initial Term.
"Knowledg;ePass Content"/"Knowledg;ePass Education Subscription"have the meanings ascribed in Section 7.5.
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"Monthly Service Fee(s)" means the monthly tccs described in an Order Form. Monthly Service Fees include tees
for usage of the Applications and the Services,Cloud Services as applicable,and Equipment rental,if any. Billing of
the Monthly Service Fee(s)commences on the Billing Start Date.
"Order Form" means an order form mutually agreed upon by Kronos and Customer setting forth the items ordered
by Customer and to be provided by Kronos,including without limitation the prices and fees to be paid by Customer.
"Personally Identifiable Data"means information concerning individually identifiable employees of Customer that
is protected against disclosure under applicable law or regulation.
"Renewal Term"means the renewal billing term of the Services as indicated on the Order Form.
"Services"means(i)the Cloud Services,(ii)accessibility to the commercially available version of the Applications
by means of access to the password protected customer area of a Kronos website, and all such services, items and
offerings accessed by Customer therein,and(ii)the Equipment rented hereunder,if any.
"Statement of Work","SOW", "Services Scope Statement" and"SSS" are interchangeable terms referring to a
written description of the Implementation Services mutually agreed upon by Kronos and Customer and set forth as
"bill as you go"services on the Order Form.
"Supplier"means any contractor,subcontractor or licensor of Kronos providing software,equipment and/or services
to Kronos which are incorporated into or otherwise related to the Services. Kronos may at its sole discretion replace
a Supplier,provided that a change to Supplier will not have a materially adverse effect on the Services delivered by
Kronos under this Agreement.
"Term"means the Initial Tenn and any Renewal Terms thereafter.
"Training Points"has the meaning ascribed to it in Section 7.6 below.
2. TERM
2.1 Billing for the Services commences on the Billing Start Date, and continues for the Initial Tenn or until
tenminated in accordance with the provisions hereof. At the expiration of the Initial Tenn and each Renewal Tenn as
applicable, the Services shall automatically renew each year for an additional Renewal Tenn until terminated in
accordance with the provisions hereof.
2.2 Either party may terminate the Services and this Agreement to be effective at the expiration of the then current
Tenn upon no less than sixty(60)days prior written notice.
2.3 Either party may tenninate the Services and the Agreement upon a material breach of the Agreement by the other
party if such breach is not cured within thirty(30)days after receipt of written notice.
2.4 in the event that either party becomes insolvent, makes a general assignment for the benefit of creditors, is
adjudicated a bankrupt or insolvent,commences a case under applicable bankruptcy laws,or tiles a petition seeking
reorganization, the other party may request adequate assurances of future performance. Failure to provide adequate
assurances,in the requesting party's reasonable discretion,within ten(10)days of delivery of the request shall entitle
the requesting party to terminate the Agreement immediately upon written notice to the other party.
2.5 if the Agreement is terminated for any reason:
(a) Customer shall pay Kronos within thirty (30) days of such termination, all fees accrued and unpaid under this
Agreement prior to the effective date of such termination,provided however,if Customer terminates for material
breach of the Agreement by Kronos, Kronos shall refund Customer any pre-paid fees for Services not delivered
by Kronos;
(b) Customer's right to access and use the Applications shall be revoked and be of no further force or effect and return
rented Equipment as provided in Section 9.1 below;
(c) Customer agrees to timely return all Kronos-provided materials related to the Services to Kronos at Customer's
expense or, alternatively, destroy such materials and provide Kronos with an officer's certification of the
destruction thereof,and
(d) All provisions in the Agreement,which by their nature are intended to survive termination,shall so survive.
2.6 Customer Content shall be available to Customer to retrieve at any time and at no additional charge throughout
the Term and for no more than thirty(30)days after expiration or termination of the Agreement for any reason. After
such time period,Kronos shall have no further obligation to store or make available the Customer Content. Kronos
will delete Customer Content after Customer's rights to access the Services and retrieve Customer Content have ended.
3. FEES AND PAYMENT
3.1 Customer shall pay Kronos the Monthly Service Fees, the fees for the Implementation Services and any
additional one time or recurring fees for Equipment, Training Points, KnowledgePass Education Subscription and
such other Kronos offerings,all as set forth on the Order Form. The Monthly Service Fees will be invoiced on the
frequency set forth on the Order Form("Billing Frequency"). If Customer and Kronos have signed a Statement of
Work for the Implementation Services, Implementation Services will be invoiced monthly as delivered unless
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otherwise indicated on the Order Form. if Kronos is pros iding lmplcmcntation Services in accordance with the
Services implementation Guideline or as"a la carte"services on the Order Form, Kronos will invoice Customer for
implementation Services in advance of providing such implementation Services unless otherwise indicated on the
Order Form. All other Kronos offerings will be invoiced upon execution of the applicable Order Form by Kronos and
Customer. Unless otherwise indicated on an Order Form,payment for all items shall be due 45 days following date
of invoice. All payments shall be sent to the attention of Kronos as specified on the invoice. Except as expressly set
forth in this Agreement,all amounts paid to Kronos are. non-refundable. Customer is responsible for all applicable
federal, state, country, provincial or local taxes relating to the goods and services provided by Kronos hereunder
(including without limitation GST and/or VAT if applicable),excluding taxes based on Kronos' income or business
privilege.
3.2 If any amount owing under this or any other agreement between the parties is thirty(30)days or more overdue.
Kronos may,without limiting Kronos'rights or remedies,suspend Services until such amounts are paid in full. Kronos
will provide at least seven(7)days prior written notice that Customer's account is overdue before suspending Services.
3.3 At the later of(i)one(1)year after the effective date of this Agreement,or(ii)expiration of the Initial Term,and
at each annual anniversary of that date thereafter,Kronos may increase the Monthly Service Fee rates in an amount
not to exceed four percent (4%). The increased Monthly Service Fees will be reflected in the monthly invoice
following the effective date of such increase without additional notice.For renewals based on the Annual in Advance
Billing Frequency, Kronos will provide Customer with the renewal invoice prior to commencement of the Renewal
Tetra and payment will be made by Customer in accordance with the payment terms agreed upon with Customer for
the Initial Term.
4.RIGHTS TO USE
4.1 Subject to the terms and conditions of the Agreement,Kronos hereby grants Customer a limited,revocable,non-
exclusive, non-transferable,non-assignable right to use during the Term and for internal business purposes only: a)
the Applications and related services,including the Documentation;b)training materials and KnowledgePass Content;
and,c) any embedded third party software, libraries,or other components,which form a part of the Services. The
Services contain proprietary trade secret technology of Kronos and its Suppliers. Unauthorized use and/or copying of
such technology are prohibited by law,including United States and foreign copyright law. Customer shall not reverse
compile,disassemble or otherwise convert the Applications or other software comprising the Services into uncompiled
or unassembled code. Customer shall not use any of the third party software programs(or the data models therein)
included in the Services except solely as part of and in connection with the Services. The Jbossg, Enterprise
Middleware components of the Service are subject to the end user license agreement found at
hgp;llwww.redhat.com/licensesljboss cula.html Customer acknowledges that execution of separate third party
agreements may be required in order for Customer to use certain add-on features or functionality, including without
limitation tax tiling services.
4.2 Customer acknowledges and agrees that the right to use the Applications is limited based upon the amount of the
Monthly Service Fees paid by Customer. Customer agrees to use only the modules and/or features for the number of
employees and users as described on the Order Form. Customer agrees not to use any other modules or features nor
increase the number of employees and user,,unless Customer pays for such additional modules, features,employees
or users,as the case may be. Customer may not license,reliccnsc or sublicense the Services,or otherwise permit use
of the Services (including timesharing or networking use) by any third party. Customer may not provide service
bureau or other data processing services that make use of the Services without the express prior written consent of
Kronos. No license, right, or interest in any Kronos trademark, trade name, or service mark, or those of Kronos'
licensors or Suppliers,is granted hereunder.
4.3 Customer may authorize its third party contractors and consultants to access the Services through Customer's
administrative access privileges on an as needed basis, provided Customer: a) abides by its obligations to protect
Confidential Information as set forth in this Agreement; b) remains responsible for all such third party usage and
compliance with the Agreement; and c) does not provide such access to a competitor of Kronos who provides
workforce management services.
4.4 Customer acknowledges and agrees that,as between Customer and Kronos,Kronos retains ownership of all right,
title and interest to the Services,all of which are protected by copyright and other intellectual property rights,and that,
other than the express rights granted herein and under any other agreement in writing with Customer,Customer shall
not obtain or claim any rights in or ownership interest to the Services or Applications or any associated intellectual
property rights in any of the foregoing. Customer agrees to comply with all copyright and other intellectual property
rights notices contained on or in any information obtained or accessed by Customer through the Services.
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4.5 When using and applying the information generated by the Services, Customer is responsible tier ensuring that
Customer complies with applicable laws and regulations. if the Services include the Workforce Payroll Applications
or Workforce Absence Management Applications: (i)Customer is solely responsible for the content and accuracy of
all reports and documents prepared in whole or in part by using these Applications,(ii)using these Applications does
not release Customer of any professional obligation concerning the preparation and review of any reports and
documents, (iii) Customer does not rely upon Kronos, Best Software, Inc. or these Applications for any advice or
guidance regarding compliance with federal and state laws or the appropriate tax treatment of items reflected on such
reports or documents, and(iv)Customer will review any calculations made by using these Applications and satisfy
itself that those calculations are correct.
5. ACCEPTABLE USE
5.1 Customer shall take all reasonable steps to ensure that no unauthorized persons have access to the Services,and
to ensure that no persons authorized to have such access shall take any action that would be in violation of this
Agreement. Customer is responsible for all activities undertaken under the auspices of its passwords and other login
credentials to use the Services.
5.2 Customer represents and warrants to Kronos that Customer has the right to publish and disclose the Customer
Content in connection with the Services. Customer represents and warrants to Kronos that the Customer Content will
comply with the Acceptable Use Policy.
5.3 Customer will not(a)use,or allow the use of,the Services in contravention of the Acceptable Use Policy.
5.4 Kronos may suspend the Services immediately upon written notice in the event of any security risk, negative
impact on infrastructure or Acceptable Use Policy violation.
b. CONNECTIVITY AND ACCESS
Customer acknowledges that Customer shall(a)be responsible for securing,paying for,and maintaining connectivity
to the Services (including any and all related hardware, software,networking,internet access,third parry services
and related equipment and components);and(b)provide Kronos and Kronos' representatives with such physical or
remote access to Customer's computer and network environment as Kronos deems reasonably necessary in order for
Kronos to perform its obligations under the Agreement Customer will make all necessary arrangements as may be
required to provide access to Customer's computer and network environment if necessary for Kronos to perform its
obligations under the Agreement.
7. IMPLEMENTATION AND SUPPORT
7.1 Implementation Services. Kronos will provide the Implementation Services to Customer. Implementation
Services described in an SOW are provided on a time and materials basis,billed monthly as delivered unless otherwise
indicated on the Order Form. implementation Services described in the Services implementation Guideline are
provided on a flat fee basis. If Customer request%additional implementation Services beyond those described in the
Services Implementation Guideline, Kronos will create a change order for Customer's review and approval and any
additional Implementation Services to be provided by Kronos will be billed as delivered at the then-current Kronos
professional services rates. Kronos' configuration of the Applications will be based on information and work flows
that Kronos obtains from Customer during the discovery portion of the implementation. Customer shall provide
Kronos with all necessary and accurate configuration-related information in a timely manner to ensure that mutually
agreed implementation schedules are met. In the event that Kronos is required to travel to Customer's location during
the implementation, Customer agrees to pay reasonable travel expenses, such as airfare, lodging, meals and local
transportation, plus an administrative fee of ten percent (10%) of the amount of such travel expenses, incurred by
Kronos in accordance with the then-current standard Kronos travel and expense policies, which Kronos will provide
to Customer upon request. Kronos shall invoice Customer for such travel expenses and payment thereof shall be due
net thirty(30)days from date of invoice. Kronos' then-current Professional/Educational Services Policies shall apply
to all Implementation Services provided by Kronos and may be accessed at:
http://www.kronos.comlSupporv?rofessionalSemicesEngagementPolicies.htm ("Professional Services Policies"). In
the event of a conflict between the Professional Services Policies and this Agreement,the terms of this Agreement
shall prevail.
7.2 Additional Services. Customer may engage Kronos to provide other services which may be fixed by activity("a
la carte")or provided on a time and materials basis("bill as you go")as indicated on the applicable Order Form.
7.3 Support. Kronos will provide 240 support for the cloud infrastructure,the availability to the cloud environment,
and telephone support for the logging of functional problems and user problems. Customer may log questions online
via the Kronos Customer Portal. As part of such support, Kronos will make updates to the Services available to
Customer at no charge as such updates are released generally to Kronos' customers. Customer agrees that Kronos
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may install critical security patches and infrastructure updates automatically as part of the Services. Kronos' then-
current Support Services Policies shall apply to all Support Services provided by Kronor and may be accessed at:
hgR://www.kronos.com/SW=rt/Support$civimPolicies.htm ("Support Policies'). In the event of a conflict between
the Support Policies and this Agreement,the terms of this Agreement shall prevail.
7.4 Support Services for Equipment. Provided Customer has purchased support services for the Equipment, the
following terms shall apply(Depot Exchange support services for rented Equipment are included in the rental fees for
such Equipment):
(a) Customer may select,as indicated on an Order Form,an Equipment Support Services option offered by the local
Kronos entity responsible for supporting the Equipment if and as such offerings are available within the Kronos
territory corresponding to the Equipment's location. Kronos shall provide each Equipment Support Services offering
as specified herein.
(i) Depot Exchange and Depot Repair. If Customer has selected Depot Exchange or Depot Repair Equipment
Support Services,the following provisions shall apply: Upon the failure of installed Equipment,Customer shall notify
Kronos of such failure and Kronos will provide remote fault isolation at the FRU (Field Replacement Unit) or
subassembly level and attempt to resolve the problem.Those failures determined by Kronos to be Equipment related
shall be dispatched to a Kronos Depot Repair Center, and Customer will be provided with a Return Material
Authorization Number(RMA)for the failed Equipment if Customer is to return the failed Equipment to Kronos,as
reasonably determined by Kronos.Customer must return the failed Equipment with the supplied RMA number.Hours
of operation,locations and other information related to Kronos' Depot Repair Centers are available upon request and
are subject to change.Return and repair procedures for failed Equipment shall be provided based on the Depot option
—Depot Exchange or Depot Repair—selected by Customer on the applicable Order Form and as specified herein and
in Kronos' then-current Support Services Policies. Service packs for the Equipment(as described in subsection(ii)
below)are included in both Depot Exchange and Depot Repair Support Services.
Depot Exchange: Kronos will provide a replacement for the failed Equipment at the FRU or subassembly
level on an"advanced exchange"basis, utilizing a carrier of Kronos'choice. Replacement Equipment will
be shipped for delivery to Customer's location as further described in the Support Policies.REPLACEMENT
EQUIPMENT MAY BE NEW OR RECONDITIONED. Customer shall specify the address to which the
Equipment is to be shipped.All shipments will include the Kronos provided RMA designating the applicable
Kronos Depot Repair Center,as the recipient. Customer, upon receipt of the replacement Equipment from
Kronos,shall package the defective Equipment in the materials provided by Kronos,with the RMA supplied
and promptly return failed Equipment directly to Kronos.
Depot Repair:Upon failure of installed Equipment,Customer shall install a Spare Product(as defined below)
to replace the failed Equipment.Customer shall then return the failed Equipment,with the required RMA,to
the applicable Kronos Depot Repair Center. Customer shall make reasonable efforts to return the failed
Equipment using the same or substantially similar packing materials in which the original Equipment was
sent. Customer shall also specify the address to which the repaired Equipment should be return shipped.
Upon receipt of the failed Equipment, Kronos shall repair the failed Equipment and ship it,within ten (10)
business days after receipt, to Customer. Kronos shall ship the repaired Equipment by regular surface
transportation to Customer.
(ii) Device Software Updates Only. If Customer has selected Device Software Equipment Support Services,
Customer shall be entitled to receive:
(A)Service packs for the Equipment(which may contain system software updates,firmware updates,security
updates, and feature enhancements) available for download at Kronos' customer portal. Service packs for
the Equipment are not installed by the Kronos Depot Repair Center but are available for download at Kronos'
customer portal, provided Customer is maintaining the Equipment under an annual Equipment Support
Services plan with Kronos.;and
(13) Access to the Kronos Support Services Center for the logging of requests for assistance downloading
service packs for the Equipment.
(b) Warranty. Kronos warrants that all service packs and firmware updates provided under this Agreement shall
perform in accordance with the Kronos published specifications in all material respects for a period of ninety (90)
days after download by Customer. In the event of a breach of this warranty, Customer's exclusive remedy shall be
Kronos'repair or replacement of the deficient service pack(s)or firmware update(s),at Kronos'option,provided that
Customer's use,installation and maintenance thereof have conformed to the specifications.
(c)Responsibilities of Customer. It is Customer's responsibility to purchase and retain,at Customer's location and at
Customer's sole risk and expense, a sufficient number of spare products("Spare Products")to allow Customer to
replace failed Equipment at Customer's locations in order for Customer to continue its operations while repairs are
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being performed and replacement Equipment is being shipped to Customer. For each of the Depot Exchange and
Depot Repair Equipment Support Services options,Customer agrees that it shall return failed Equipment promptly as
the failures occur and that it shall not hold failed Equipment and send failed Equipment to Kronos in"batches"which
shall result in a longer turnaround time to Customer. In addition,Customer agrees to:
(i) Maintain the Equipment in an environment conforming to the Kronos published specifications for such
Equipment;
(ii) Not perform self-repairs on the Equipment (i.e., replacing components) without prior written
authorization from Kronos;
(iii)De-install all failed Equipment and install all replacement Equipment in accordance with Kronos'written
installation guidelines;
(iv)Ensure that the Equipment is returned to Kronos properly packaged;and
(v)Obtain an RMA before returning any Equipment to Kronos and place the RMA clearly and conspicuously
on the outside of the shipping package. Customer may only return the specific Equipment authorized by
Kronos when issuing the RMA.
(d) Delivery. All domestic shipments within the United States are FOB Destination to/from Customer and Kronos
with the shipping party bearing all costs and risks of loss, and with title passing upon delivery to the identified
destination. All international shipments from Kronos to Customer are DAP (Incoterms 2010) to the applicable
Customer location,and are DDP(Incoterms 2010)to the applicable Kronos Depot Repair Center when Customer is
shipping to Kronos,and with title passing upon delivery to the identified destination. Customer is responsible for all
duties and taxes when sending Equipment to Kronos.
7.5 Kno►vledgePass Education Subscription. When KnowledgePass Education Subscription is purchased on an
Order Form(i.e.,not indicated as"Included"in the Monthly Service Fees), Kronos will provide Customer with the
KnowledgePass Education Subscription for a period of one(1)year from execution of the Order Form. Kronos will
send Customer a renewal invoice for renewal of the KnowledgePass Education Subscription,and the KnowledgePass
Education Subscription shall renew for an additional one(1)year term if Customer pays such invoice before the end
of the then-current term for the KnowledgePass Education Subscription. The KnowledgePass Education Subscription
provides access to certain educational offerings provided by Kronos (the "KnowledgePass Contenf7. Customer
recognizes and agrees that the KnowledgePass Content is copyrighted by Kronos. Customer is permitted to make
copies of the KnowledgePass Content provided in 'pdf form solely for Customer's internal use. Customer may not
disclose such KnowledgePass Content to any third party other than Customer's employees. Customer may not edit,
modify, revise, amend,change, alter,customize or vary the KnowledgePass Content without the written consent of
Kronos, provided that Customer may download and modify contents of training kits solely for Customer's internal
use.
7.6 Training Points. "Training Points"are points which are purchased by Customer that may be redeemed for an
equivalent value of instructor-led training sessions offered by Kronos.Training Points may be redeemed only during the
Term but only prior to the date which is no more than twelve(12)months after the date of the Order Form pursuant to
which the Training Points were acquired, after which time such Training Points shall expire and be of no value.
Training Points may not be exchanged for other Kronos products or services.
7.7 Training Courses. When Training Points or training sessions arc set forth in an SSS, the SSS applies. When
Training Points or training sessions are not set forth in an SSS, as part of the Services, for each SaaS application
module included in the Services purchased by Customer, Customer's employees shall be entitled to attend, in the
quantity indicated, the corresponding training courses set forth at: www.kronos.com/products/workforcc-mtral-
saas,hraining-euidlines.aspx
Participation in such training courses is limited to the number of seats indicated for the courses corresponding to the
modules forming a part of the Services purchased by Customer.
7.8 Technical Account Manager. Customers purchasing a Kronos Technical Account Managcr("TAM")as indicated
on the Order Form shah receive the service of a dedicated,but not exclusive,TAM for one production instance of the
Software. Customer will designate up to two primary and three secondary backup technical contacts ("Technical
Contacts") to be the sole contacts with the TAM. Upon request, Customer may designate a reasonable number of
additional and/or backup Technical Contacts. Customer is required to place all primary Technical Contacts through
Kronos training for the Applications covered under this Agreement at Customer's expense.
& CUSTOMER CONTENT
Customer shall own all Customer Content. Kronos acknowledges that all of the Customer Content is deemed to be
the Confidential Information of Customer. Customer will ensure that all Customer Content conforms with the terms
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of this Agreement and applicable law. Kronos and its Suppliers may, but shall have no obligation to, access and
monitor Customer Content from time to time to provide the Services and to ensure compliance with this Agreement
and applicable law. Customer is solely responsible for any claims related to Customer Content and for properly
handling and processing notices that are sent to Customer regarding Customer Content.
9. EQUIPMENT
If Customer purchases or rants Equipment from Kronos, a description of such Equipment(model and quantity),the
applicable pricing,and delivery terms shall be listed on the Order Form.
9.1 Rented Equipment. The following terms apply only to Equipment Customer rents from Kronos:
(a) Rental Term and Warranty Period. The term of the Equipment rental and the "Warranty Period" for
such Equipment shall run coterminously with the Term of the other Services provided under the Agreement.
(b) Insurance. Customer shall insure the Equipment for an amount equal to the replacement value of the
Equipment for loss or damage by fire,theft,and all normal extended coverage at all times. No loss,theft or damage
after shipment of the Equipment to Customer shall relieve Customer from Customer's obligations under the
Agreement.
(c) Location/Replacement. Customer shall not make any alterations or remove the Equipment from the place of
original installation without Kronos'prior written consent. Kronos shall have the right to enter Customer's premises
to inspect the Equipment during normal business hours. Kronos reserves the right, at its sole discretion and at no
additional cost to Customer,to replace any Equipment with newer or alternative technology Equipment as long as the
replacement Equipment at least provides the same level of functionality as that being replaced.
(d) Ownership. All Equipment shall remain the property of Kronos. All Equipment is, and at all times shall
remain,separate items of personal property,notwithstanding such Equipment's attachment to other equipment or real
property. Customer shall not sell or otherwise encumber the Equipment. Customer shall furnish any assurances,
written or otherwise,reasonably requested by Kronos to give full effect to the intent of terms of this paragraph(d).
(e) Equipment Support. Kronos shall provide to Customer the Equipment support services described in Section
7.
(f) Return of Equipment. Upon termination of the Agreement or the applicable Order Form, Customer shall
return,within thirty(30)days of the effective date of termination and at Customer's expense,the Equipment subject
to this Section 9.L Equipment will be returned to Kronos in the same condition as and when received, reasonable
wear and tear excepted. If Customer fails to return Equipment within this time period,upon receiving an invoice from
Kronos,Customer shall pay Kronos the then list price of the unreturned Equipment.
9.2 Purchased Equipment. The following terms apply only to Equipment Customer purchases from Kronos:
(a) JLtle and Warranty Period. When the Order Form indicates FOB-Shipping Point,title to the Equipment
passes to Customer upon delivery to the carrier, for all other shipping terms,title passes upon delivery to Customer.
The "Warranty Period" for the Equipment shall be for a period of 90 days from such delivery (unless otherwise
required by law).
(b) Kronos shall provide to Customer the Equipment support services described in this Agreement if
purchased separately by Customer as indicated on the applicable Order Form. if purchased, Equipment support
services have a term of one(l)year commencing upon expiration of the Warranty Period. Equipment support services
will be automatically extended for additional one (1) year terms on the anniversary of its commencement date
("Renewal Date"),unless either party has given the other thirty(30)days written notification of its intent not to renew.
Kronos may change the annual support charges for Equipment support services effective at the end of the initial one
(1)year term or effective on the Renewal Date,by giving Customer at least thirty(30)days prior written notification.
9.3 Equipment with Finger Scan Sensor Technology% The following terms apply only to any Equipment with finger
scan sensor technology purchased by Customer from Kronos or a Kronos reseller("Finger Scan Equipment"):
(a) To the extent that any biometric privacy laws may apply to Customer's use of the Finger Scan Equipment,
Customer warrants that they will comply with any such laws prior to commencing use of the Finger Scan Equipment
and will remain in compliance at all times. Customer further warrants that, if required by law, prior to such use it
will (i) obtain signed releases from employees consenting to the use of the Finger Scan Equipment for employee
timekeeping purposes and(ii)issue policies made available to their employees and the public regarding its retention
and destruction of the Finger Scan data. Customer further warrants that it will ensure that any releases,consents,or
policies,as required by applicable law,will by their terms expressly apply to Kronos and its authorized subcontractors.
(b)Customer agrees to defend,hold harmless and indemnify Kronos,its employees,directors,parent,subsidiaries and
authorized partners and subcontractors (collectively, "Kronos Indemnitees") for any claims, damages, penalties or
fines asserted or awarded against a Kronos Indemnitee arising out of or relating to Customer's breach of any of the
foregoing warranties in Section 9.3(a)above. Upon receipt of such notice,the Customer shall assume sole control of
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the defense and settlement of such claim;provided that(i)Kronos will be entitled to participate in the defense of such
claim and to employ counsel at its own expense to assist in the handling of such claim, on a monitoring and a non-
controlling basis; (ii)Customer shall not settle any claim on any terms or in any manner that adversely affects the
rights of Kronos without its prior written consent;and(iii) Kronos will provide reasonable cooperation and assistance
at Customer's sole cost and expense.
10. SERVICE LEVEL AGREEMENT
Kronos shall provide the service levels and associated credits,when applicable,in accordance with the Service Level
Agreement attached hereto as Exhibit A and which is hereby incorporated herein by reference. CUSTOMER'S SOLE
AND EXCLUSIVE REMEDY IN THE EVENT OF ANY SERVICE OUTAGE OR INTERRUPTION OF THE
SERVICES OR FAILURE BY KRONOS TO MEET THE TERMS OF THE APPLICABLE SERVICE LEVEL
AGREEMENT,SHALL BE THE REMEDIES PROVIDED IN EXHIBIT A.
11. LIMITED WARRANTY;DISCLAIMERS OF WARRANTY
11.1 Kronos represents and warrants to Customer that the Applications,under normal operation as specified in the
Documentation and when used as authorized herein, will perform substantially in accordance with such
Documentation during the Tetra.
11.2 Kronos'sole obligation and Customer's sole and exclusive remedy for any breach of the foregoing warranty is
limited to Kronos'reasonable commercial efforts to correct the non-conforming Applications at no additional charge
to Customer. In the event that Kronos is unable to correct material deficiencies in the Services arising during the
Warranty Period,after using Kronos'commercially reasonable efforts to do so,Customer shall be entitled to terminate
the then remaining Term of the Agreement as Customer's sole and exclusive remedy. Kronos'obligations hereunder
for breach of warranty are conditioned upon Customer notifying Kronos of the material breach in writing, and
providing Kronos with sufficient evidence of such non-conformity to enable Kronos to reproduce or verify the same.
11.3 Kronos warrants to Customer that each item of Equipment shall be free from defects in materials and workmanship
during the Warranty Period. in the event of a breach of this warranty.Customer's sole and exclusive remedy shall be
Kronos' repair or replacement of the deficient Equipment, at Kronos' option, provided that Customer's use,
installation and maintenance thereof have conformed to the Documentation for such Equipment. This warranty is
extended to Customer only and shall not apply to any Equipment(or parts thereof)in the event of:
(a) damage,defects or malfunctions resulting from misuse,accident,neglect,tampering,(including without
limitation modification or replacement of any Kronos components on any boards supplied with the Equipment),
unusual physical or electrical stress or causes other than normal and intended use;
(b) failure of Customer to provide and maintain a suitable installation environment, as specified in the
published specifications for such Equipment;or
(e) malfunctions resulting from the use of badges or supplies not approved by Kronos.
EXCEPT AS PROVIDED FOR 1N THIS SECTION 11, KRONOS HEREBY DISCLAIMS ALL WARRANTIES,
CONDITIONS, GUARANTIES AND REPRESENTATIONS RELATING TO THE SERVICES, EXPRESS OR
IMPLIED,ORAL OR IN WRITING,INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF
MERCHANTABILITY,FITNESS FOR A PARTICULAR PURPOSE,TITLE AND NON-INFRINGEMENT,AND
WHETHER OR NOT ARISING THROUGH A COURSE OF DEALING,INCLUDING,WITHOUT LIMITATION,
ANY WARRANTY THAT MAY OTHERWISE. ARISE PURSUANT TO ANY STATUTE, CODE, COMMON
LAW OR JUDICIAL DECISION. THE SERVICES ARE NOT GUARANTEED TO BE ERROR-FREE OR
UNINTERRUPTED. EXCEPT AS SPECIFICALLY PROVIDED IN THIS AGREEMENT,KRONOS MAKES NO
WARRANTIES OR REPRESENTATIONS CONCERNING THE COMPATIBILITY OF THE SERVICES, THE
SAAS APPLICATIONS OR THE EQUIPMENT NOR ANY RESULTS TO BE ACHIEVED THEREFROM.
12. DATA SECURITY AND PRIVACY
12.1 As part of the Services, Kronos shall provide those administrative, physical, and technical safeguards for
protection of the security, confidentiality and integrity of Customer data as described at:
http://www.kronos.com/products/workforce-central-cloud/cloud-guidelines.aspx
12.2 As between Customer and Kronos,all Personally Identifiable Data is Customer's Confidential Information and
will remain the property of Customer. Customer represents that to the best of Customer's knowledge such Personally
Identifiable Data supplied to Kronos is accurate. Customer hereby consents to the use,processing or disclosure of
Personally Identifiable Data by Kronos and Kronos'Suppliers wherever located only for the purposes described herein
and only to the extent such use or processing is necessary for Kronos to carry out Kronos'duties and responsibilities
under the Agreement or as required by law.
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12.3 Customer will ensure that: (a)the transfer to Kronos and storage of any Personally Identifiable Data by Kronos
or Kronos'Supplier's data center is permitted under applicable data protection laws and regulations;and,(b)Customer
will obtain consents from individuals for such transfer and storage to the extent required under applicable laws and
regulations.
12.4 Kronos will notify Customer in accordance with applicable laws upon becoming aware of an unauthorized
access of Customer Content.
12.5 Customer agrees that Kronos may use sub-processors to fulfill its contractual obligations under the Agreement.
Kronos shall be liable for all breaches of this agreement by is sub-processors. The list of sub-processors that are
engaged by Kronos to carry out processing activities on Customer Content on behalf of Customer can be found at:
htips://www.kronos.conVworkforce-central-cloudlsubprocessors
13. INDEMNIFICATION
13.1 Kronos shall defend Customer and its respective directors,officers,and employees(collectively,the"Customer
Indemnified Parties"),from and against any and all notices,charges,claims,proceedings,actions,causes of action
and suits, brought by a third party (each a "Claim") alleging that the permitted uses of the Services infringe or
misappropriate any United States or Canadian copyright or patent,and Kronos will indemnify and hold harmless the
Customer Indemnified Parties against any liabilities, obligations, costs or expenses (including without limitation
reasonable attorneys' fees) actually awarded to a third party as a result of such Claim by a court of applicable
jurisdiction or as a result of Kronos'settlement of such a Claim. In the event that a final injunction is obtained against
Customer's use of the Services by reason of infringement or misappropriation of such copyright or patent, or if in
Kronos' opinion, the Services are likely to become the subject of a successful claim of such infringement or
misappropriation.Kronos,at Kronos'option and expense,will use commercially reasonable efforts to(a)procure for
Customer the right to continue using the Services as provided in the Agreement, (b)replace or modify the Services
so that the Services become non-infringing but remain substantively similar to the affected Services,and if neither(a)
or(b) is commercially feasible,to(c)terminate the Agreement and the rights granted hereunder after provision of a
refund to Customer of the Monthly Service Fees paid by Customer for the infringing elements of the Services covering
the period of their unavailability.
13.2 Kronos shall have no liability to indemnify or defend Customer to the extent the alleged infringement is based
on: (a) a modification of the Services by Customer, (b)use of the Applications other than in accordance with the
Documentation for such Service or as authorized by the Agreement;(c)use of the Services in conjunction with any
data, equipment, service or software not provided by Kronos, where the Services would not otherwise itself be
infringing or the subject of the claim;or(d) use of the Services by Customer other than in accordance with the terms
of the Agreement.
13.3 Customer shall defend Kronos, its Suppliers and their respective directors, officers, employees, agents and
independent contractors(collectively,the"Kronos Indemnified Parties")from and against any and all Claims,and
will indemnify and hold harmless the Kronos Indemnified Parties against liabilities, obligations, costs or expenses
(including without limitation reasonable attorneys' fees)actually awarded to a third party as a result of such Claim by
a court of applicable jurisdiction or as a result of Customer's settlement of such a Claim, arising out of: (a)
employment-related claims arising out of Customer's configuration of the Services„(b)Customer's modification or
combination of the Services with other services, software or equipment not furnished by Kronos,provided that such
Customer modification or combination is the cause of such infringement and was not authorized by Kronos;or, (c)a
claim that the Customer Content infringes in any manner any intellectual property right of any third party, or any of
the Customer Content contains any material or information that is obscene,defamatory,libelous,or slanderous violates
any person's right of publicity,privacy or personality,or has otherwise caused or resulted in any tort,injury,damage
or harm to any other person. Customer will have sole control of the defense of any such action and all negotiations
for its settlement or compromise. Kronos will cooperate fully(at Customer's request and expense) with Customer in
the defense,settlement or compromise of any such action.
13.4 The Indemnified Party(ies)shall provide written notice to the indemnifying party promptly after receiving notice
of such Claim. If the defense of such Claim is materially prejudiced by a delay in providing such notice,the purported
indemnifying party shall be relieved from providing such indemnity to the extent of the delay's impact on the defense.
The indemnifying party shall have sole control of the defense of any indemnified Claim and all negotiations for its
settlement or compromise,provided that such indemnifying party shall not enter into any settlement which imposes
any obligations or restrictions on the applicable Indemnified Parties without the prior written consent of the other
party. The Indemnified Parties shall cooperate fully, at the indemnifying party's request and expense, with the
indemnifying party in the defense,settlement or compromise of any such action. The indemnified patty may retain
its own counsel at its own expense,subject to the indemnifying party's rights above.
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14. LIMITATION OF LIABILITY
14.1 EXCEPT AS SPECIFICALLY PROVIDED IN THIS AGREEMENT,KRONOS AND ITS SUPPLIERS WILL
NOT BE LIABLE FOR ANY DAMAGES OR INJURIES CAUSED BY THE USE OF THE SERVICES OR BY
ANY ERRORS, DELAYS,INTERRUPTIONS IN TRANSMISSION,OR FAILURES OF THE SERVICES.
14.2 EXCEPT FOR KRONOS' INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 13 OF THIS
ATTACHMENT A ONLY THE TOTAL AGGREGATE LIABILITY OF KRONOS OR KRONOS' SUPPLIERS
TO CUSTOMER AND/OR ANY THIRD PARTY IN CONNECTION WITH THE AGREEMENT SHALL BE
LIMITED TO DIRECT DAMAGES PROVEN BY CUSTOMER, SUCH DIRECT DAMAGES NOT TO EXCEED
AN AMOUNT EQUAL TO TWO TIMES(2X)THE TOTAL NET PAYMENTS RECEIVED BY KRONOS FOR
THE SERVICES IN THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE IN
WHICH SUCH CLAIM ARISES.
14.3 EXCEPT FOR KRONOS' INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 13 ABOVE,
AND SECTION 15 OF THE PROCUREMENT AGREEMENT, IN NO EVENT SHALL KRONOS OR KRONOS'
SUPPLIERS, THEIR RESPECTIVE AFFILIATES, SERVICE PROVIDERS, OR AGENTS BE LIABLE TO
CUSTOMER OR ANY THIRD PARTY FOR ANY INCIDENTAL, SPECIAL, PUNITIVE, CONSEQUENTIAL
OR OTHER INDIRECT DAMAGES OR FOR ANY LOST OR IMPUTED PROFITS OR REVENUES, LOST
DATA OR COST OF PROCUREMENT OF SUBSTITUTE SERVICES RESULTING FROM DELAYS,
NONDELIVERIES, MISDELIVERIES OR SERVICES INTERRUPTION, HOWEVER CAUSED, ARISING
FROM OR RELATED TO THE SERVICES OR THE AGREEMENT,REGARDLESS OF THE LEGAL THEORY
UNDER WHICH SUCH LIABILITY IS ASSERTED, WHETHER BREACH OF WARRANTY,
INDEMNIFICATION,NEGLIGENCE,STRICT LIABILITY OR OTHERWISE,AND WHETHER LIABILITY IS
ASSERTED IN CONTRACT, TORT OR OTHERWISE, AND REGARDLESS OF WHETHER KRONOS OR
SUPPLIER HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH LIABILITY,LOSS OR DAMAGE.
14.4 EXCEPT WITH RESPECT TO LIABILITY ARISING FROM KRONOS' GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT, KRONOS DISCLAIMS ANY AND ALL LIABILITY, INCLUDING WITHOUT
LIMITATION LIABILITY RELATED TO A BREACH OF DATA SECURITY AND CONFIDENTIALITY
OBLIGATIONS, RESULTING FROM ANY EXTERNALLY INTRODUCED HARMFUL PROGRAM
(INCLUDING WITHOUT LIMITATION VIRUSES, TROJAN HORSES, AND WORMS), CUSTOMER'S
CONTENT OR APPLICATIONS, THIRD PARTY UNAUTHORIZED ACCESS OF EQUIPMENT, SAAS
APPLICATIONS OR SYSTEMS,OR MACHINE ERROR.
15. CONFIDENTIAL INFORMATION
15.1 Each Party shall protect the Confidential Information of the other Party with at least the same degree of care and
confidentiality, but not less than a reasonable standard of care,which such Party utilizes for its own information of
similar character that it does not wish disclosed to the public. Neither Party shall disclose to third parties the other
Party's Confidential Information,or use it for any purpose not explicitly authorized herein,without the prior written
consent of the other Party. The obligation of confidentiality shall survive for five(5)years after the return of such
Confidential Information to the disclosing party or five(5)years after the expiration or termination of the Agreement,
whichever is later, as applicable. Notwithstanding anything herein to the contrary, each party acknowledges and
agrees that all trade secrets shall be safeguarded by a receiving party as required by this Agreement for so long as such
information remains a trade secret pursuant to applicable law.
15.2 Notwithstanding the foregoing,a party may disclose Confidential Information to the extent required:(a)to any
subsidiary or affiliate of such Party,or(b)to any consultants,contractors, and counsel who have a need to know in
connection with the Agreement and have executed a non-disclosure agreement with obligations at least as stringent as
this Section 15,or(c)by law, or by a court or governmental agency,or if necessary in any proceeding to establish
rights or obligations under the Agreement,provided, the receiving party shall, unless legally prohibited,provide the
disclosing party with reasonable prior written notice sufficient to permit the disclosing party an opportunity to contest
such disclosure. This Section 15.2 does not limit the Customer's responsibilities under the California Public Records
Act,Government Code section 6250 et. seq. If a party commits,or threatens to commit,a breach of this Section 15,
the other party shall have the right to seek injunctive relief from a court of competent jurisdiction.
15.3 This Agreement imposes no obligation upon either Party with respect to the other Party's Confidential
Information which the receiving Party can establish: (a) is or becomes generally known through no breach of the
Agreement by the receiving party,or(b)is already known or is independently developed by the receiving party without
use of or reference to the Confidential Infotmtation.
x:\3 - PUBLIc sECTDR\FRESNO\P-21-095 KRONOS iNc. A(3ZEe4ENT - 7-19-21 DRAFT (007)_CLEAN.DOCX
PROCUREMENT AGREEMENT NUMBER: P-21-095 Attachment Page 11 of
July 22, 2021
16. EXPORT
Customer understands that any export of the Equipment may require an export license and Customer assumes full
responsibility for obtaining such license. Customer must obtain Kronos' prior written consent before exporting the
Equipment.
17. GENERAL
17.1 This Agreement shall be governed by and construed in accordance with the laws of the State of California. The
parties waive the application of the United Nations Commission on International Trade Law and United Nations
Convention on Contracts for the International Sale of Goods as to the interpretation or enforcement of the Agreement
and waive and"opt out"of the Uniform Computer Information Transactions Act(UCITA),or such other similar law.
17.2 The invalidity or illegality of any provision of the Agreement shall not affect the validity of any other provision.
The parties intend for the remaining unaffected provisions to remain in full force and effect.
17.3 Customer shall not assign the Agreement or the rights to use the Services without the prior written consent of
Kronos and any purported assignment,without such consent,shall be void.
17.4 Neither Party shall be responsible for any failure to perform or delay in performing any of its obligations under
this Agreement(other than a failure to comply with payment obligations)where and to the extent that such failure or
delay results from an unforeseeable event beyond a parry's reasonable control, including but not limited to, acts of
war; acts of nature; earthquake; flood; embargo; riot; sabotage; labor shortage or dispute; changes in government
codes,ordinances,laws,rules,regulations or restrictions;failure of the Internet;terrorist acts;failure of data,products
or services controlled by any third party,including the providers of communications or network services;utility power
failure;material shortages or unavailability or other delay in delivery not resulting from the responsible party's failure
to timely place orders therefor,or lack of or delay in transportation(each a"Force Majeure Event").
17.5 All notices given under the Agreement shall be in writing and sent postage pre-paid,if to Kronos,to the Kronos
address on the Order Form,or if to Customer,to the billing address on the Order Form.
17.6 No action,regardless of form,may be brought by either party more than two(2)years after the cause of action
has arisen.
17.7 The section headings herein are provided for convenience only and have no substantive effect on the construction
of the Agreement.
17.8 The parties agree that if the Agreement is accepted by the parties and that acceptance is delivered via fax or
electronically delivered via email or the internet it shall constitute a valid and enforceable agreement.
17.9 This Agreement,the Procurement Agreement,and any information expressly incorporated by reference herein,
together with the applicable Order Form,constitute the entire agreement between the parties for the Services described
herein and supersede all prior or contemporaneous representations, negotiations, or other communications between
the parties relating to the subject matter of this Agreement.This Agreement may be amended only in writing signed
by authorized representatives of both parties.Customer understands and acknowledges that while Kronos may disclose
to customers certain confidential information regarding general Service or product development direction, potential
future Services, products or product enhancements under consideration, Customer is not entitled to any Services,
products or product enhancements other than those contained on the Order Form. Customer has not relied on the
availability of any future version of the Services (including SaaS Applications or equipment) identified on an Order
Form,nor any other future product in executing the Agreement.
CUSTOMER AGREES TO THESE TERMS AND CONDITIONS FOR ALL ORDER FORMS FOR THE
SERVICES. THE INDIVIDUAL ACCEPTING THESE TERMS AND CONDITIONS ON BEHALF OF
CUSTOMER REPRESENTS THAT HE/SHE HAS THE AUTHORITY TO CONTRACTUALLY BIND
CUSTOMER.
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PROCUREMENT AGREEMENT NUMBER: P-21-095 Attachment Page 12 of
July 22, 2021
l:\IIIBIT A
SERVICE LEVEL AGREEMENT(SLA)
Service Level Agreement: The Services,in a production environment,arc provided with the service levels described
in this Exhibit A. SLAs arc only applicable to production environments. SLAB will be available upon Customer's
signature of Kronos'Go Live Acceptance Form for Customer's production environment.
99.75%Application Availability
Actual Application Availability%=(Monthly Minutes(MM)minus Total Minutes Not Available(TM))multiplied
by 100)and divided by Monthly Minutes(MM),but not including Excluded Events
Service Credit Calculation: An Outage will be deemed to commence when the Applications are unavailable to
Customer in Customer's production environment hosted by Kronos and end when Kronos has restored availability of
the Applications. Failure to meet the 99.75%Application Availability SLA,other than for reasons due to an Excluded
Event,will entitle Customer to a credit as follows:
Actual Application Availability % Service Credit to be applied to Customer's
as measured in a calendar month) monthly invoice for the affected month
99.75%to 98.75% 100"
98.75%to 98.25% 15%
98.25%to 97.75% 25%
97.75 to 96.75% 35%
6.75 50•10
"Outage" means the accumulated time, measured in minutes, during which Customer is unable to access the
Applications for reasons other than an Excluded Event.
"Excluded Event"means any event that results in an Outage and is caused by(a)the acts or omissions of Customer,
its employees,customers,contractors or agents;(b)the failure or malfunction of equipment,applications or systems
not owned or controlled by Kronos,including without limitation Customer Content,failures or malfunctions resulting
from circuits provided by Customer, any inconsistencies or changes in Customer's source environment, including
either intentional or accidental connections or disconnections to the environment; (c) Force Majeurc events; (d)
expected downtime during the Maintenance Periods described below;(e)any suspension of the Services in accordance
with the terms of the Agreement to which this Exhibit A is attached; (f) the unavailability of required Customer
personnel, including as a result of failure to provide Kronos with accurate, current contact information;or(g)using
an Application in a manner inconsistent with the Documentation for such Application.
"Maintenance Period" means scheduled maintenance periods established by Kronos to maintain and update the
Services,when downtime may be necessary,as further described below. The Maintenance Period is used for purposes
of the Service Credit Calculation; Kronos continuously maintains the production environment on a 240 basis to
reduce disruptions.
Customer Specific Maintenance Period
1. Customer will choose one of the following time zones for their Maintenance Period:
a. United States Eastern Standard Time,
b. GMT/UTC,
c. Central European Time(CET)or
d. Australian Eastern Standard Time(AEST).
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PROCUREMENT AGREEMENT NUMBER: P-21-095 Attachment Page 13 of
July 22, 2021
2. Customer will choose one of the following days of the week for their Maintenance Period:Saturday,Sunday,
Wednesday or Thursday.
3. Kronos will use up to six (6) hours in any two (2) consecutive rolling months (specifically: January and
February; March and April; May and June; July and August; September and Octobcr; November and
December) to perform Customer Specific Maintenance, excluding any customer requested Application
updates. Downtime in excess of these six(6)hours will be deemed to be an Outage.
4. Customer Specific Maintenance will occur between 12am-6am during Customer's selected time zone.
5. Excluding any customer requested Application updates, Kronos will provide notice for planned downtime
via an email notice to the primary Customer contact at least seven (7) days in advance of any known
downtime so planning can be facilitated by Customer.
6. Customer Specific Maintenance Windows also include additional maintenance windows mutually agreed
upon by Customer and Kronos.
7. In absence of instruction from Customer,Kronos will by default perform Maintenance in the time zone where
the Data Center is located.
Non-Customer Specific Maintenance Period
Kronos anticipates non-Customer Specific Maintenance to be performed with no or little(less than three
hours per month)Customer downtime. If for any reason non-Customer Specific Maintenance requires
downtime,Kronos will provide as much notice as reasonably possible of the expected window in which
this will occur. Downtime in excess of three(3)hours per month for Non-Customer Specific Maintenance
will be deemed to be an Outage.
"Monthly Minutes(MM)"means the total time,measured in minutes,of a calendar month commencing at 12:00 am
of the first day of such calendar month and ending at 11:59 pm of the last day of such calendar month.
"Total Minutes Not Available(TM)"means the total number of minutes during the calendar month that the Services
are unavailable as the result of an Outage.
Reporting;and Claims Process: Service Credits will not be provided if.(a)Customer is in breach or default under
the Agreement at the time the Outage occurred;or(b)the Outage results from an Excluded Event.
Kronos will provide Customer with an Application Availability report on a monthly basis for each prior calendar
month. Within sixty (60) days of receipt of such report, Customer must request the applicable Service Credit by
written notice to Kronos. Customer waives any right to Service Credits not requested within this time period. . All
performance calculations and applicable Service Credits are based on Kronos records and data unless Customer can
provide Kronos with clear and convincing evidence to the contrary.
The Service Level Agreements in this Exhibit,and the related Service Credits,apply on a per production environment
basis. For the avoidance of doubt,Outages in one production environment may not be added to Outages in any other
production environment for purposes of calculating Service Credits.
Customer acknowledges that Kronos manages its network traffic in part on the basis of Customer's utilization of the
Services and that changes in such utilization may impact Kronos' ability to manage network traffic. Therefore,
notwithstanding anything else to the contrary, if Customer significantly changes its utilization of the Services than
what is contracted with Kronos and such change creates a material and adverse impact on the traffic balance of the
Kronos network,as reasonably determined by Kronos, the parties agree to co-operate, in good faith, to resolve the
issue.
x:\3 - PUBLIc sECTDR\FRESNo\P-21-095 KRONOS iNc. A(3ZEe4ENT - 7-19-21 DRAFr (007)_CLEAN.DOCx
PROCUREMENT AGREEMENT NUMBER: P-21-095 Attachment Page 14 of
July 22, 2021
Attachment B
x:\3 - PUBLIc sECTDR\FRESNo\P-21-095 KRONOS iNc. PigzEe4ENT - 7-19-21 DRAFT (007)_CLEAN.DoOC
PROCUREMENT AGREEMENT NUMBER: P-21-095 Attachment Page 15 of
July 22, 2021
W4, KR(DNOS- Order Form-Workforce Central SaaS for SMB
On..N a: VIV21121 Cord.Tyr. I ll:r._I.•
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MIT..: At N .ol.. Ship Tor. Ann:T_'i:17:n.n._
Fresno County Probatlor Department County of Fresno
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.A..NIt11.r IMW1•I.t1ly ratr.tll.YfiY.itl tt1:1Y11..rNWY111 INi1.11N..11IIY<ININFgtr d.IM II>InYI ItINtI.KI<IIIINt tYlp l•nl tray Sl AlfYlgl•hr Nlty(II.1 NyN II.NI ik IIIY INglll.i<uW.I.urJ't.A loot
.A,rNIrn.Y IIIIII.�INNtII>•IIr nnrtr..N l.oq.I�J.MI NII rw1<II II�NIn N,IINr Ir IIII'il M.I th/Il.g IINNA Iv..N.411R pNl k11it�NI•IJ IC.NI<Ilt N Itwy tIMM1I I<I..toil 1 N.IN...N iraYt N'>N 1NrJy..h MRC
gxr es to ciFpeak peiods.C'asMlrer scknawledCes hat readvnb'VLVI o:•er a IvnC distance senlrc connecem s rot a reliable protocol for it doer not hoot retry loci:bt ilt•ir to
hrrdlrconwA*%ityivatrs.K•onoe a7 oat Im.'"Pumiberoo arrr tfislpesrrg.tired toeastotoePl llllCV.al tyllrtry!.tuaKWmtl tot lonitatiwY cl ivaod• IIr OODC ptutowl
This order Is made as pro of a Crones prcmetlon.AA pricing a close %W sai:A;a cel'nution wth such prolraoen and vaill not bo Ap011CC to futl.re orders.customers ScAtware
ICpoort and CloL.d Mostly[services,as apdictbe,for the e.isting WDrkfcrce Cmttral regrual hcenws shall continue.in accordant with Krems Suppert policies,far a penal of rinety
J•n1,.a:p horn A—Linn 0 W.A Oalm Fnont and slwll 1.••rninm.:rh.rrahrt,nNrse.6uean.•1 drone..::Tr.•.iWAta 44r— Suµw?and CkoOd tf.wi.g s,loi:r>,as appirwnk;.ar
appl cask:tees.
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W.mns r,oI nNnir a.q Mr nad!!ur.rlusrA raaarn I.Ato,r.Su1:Icrn anA(-rf.r.aA Mnuing Se/vkas nn rho parparual lorzrs.ax,as applAaAla.CrN:lit.:rna.•1,.-:al>NlkdagaFl.t any amru•n::
ow+cd to Krralns Ay eusralry k1a11 such crash Is a.poxloA.G.atomer shall pay ta Sahvarc Supaan ana CoaA Nasring sanirrs tar;,:G appl Willa,an nw aarparaal Ikclssr ulrc 1 rna
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WorkftvteldeStaHRiddi+e:•i.l Sec Sum InClAcd
Monthly Totals $2,376A0
CLC>JD SEPVICES
Koss •Only00AoxtextowlLA1ltCabbase I SC.ec
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Kronos I Time Attendance-Scheduling-Absence Management- HR& Payroll - Hiring- Labor Analytics
Kronos Incorporated 900 C helmsford St, Lowell,MA 01851 (800)225-1561 (978)250-9800 www•Kronos.com
x:\3 - PUBLic sEcroa\FREsNo\P-21-095 ICRONOs INC. PcREENENT - 7-19-21 DRAFT (007)_CLEAN.000c
PROCUREMENT AGREEMENT NUMBER: P-21-095 Attachment Page 16 of
July 22, 2021
1e 1 S1Bo ao Ld,rnn t,vnruenr
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lat lechriceheroces 12 >thw I Ie:hmb�r on:k MT
Talal Mies $',uuu.00
llc IY A00 t:avon lcc :2,371.7:�
Total Meutl,ly spoke Rue '$&376.60
Jil/:i�u C�:ery rs :+.CVG.J7
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nocuSrg nerJ by.
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Doter Dntr 712212021 j 1:41 PM EDT
Kronos I Time Attendance-Scheduling-Absence Management-HR&Payroll -Hiring-Labor Analytics
Kronos lwoij),>iated 900thelmsford tit, Lowell,MA01851 (800)225-1561 (978)2 5 0-9 8 017 yr :w ra:nos ern
x:\3 - PUBLIC SEcn0R\FRS\P-21-095 KFO"1W. aaRE194Errr- 7-19-21 DRAFT (007)c-EAw.Dooc
;W1 KRONOSr
Professional Services Work Order
Opportunity ID:Opp-374624
Customer Name:Fre:qu Prubaiiun Depur l intent SID:611134D
Customer Contact:D30d 101;413 Phone Numb":
Email Address:dNxmraErftasuucrxmlyr:a.guv Currency: USL
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X:\3 - PUBLIC SECTOR\FRLsNo\P-21-095 KRON05 INC. .ACREu4ENT - 7-19-21 DRAFT (007)_CLEAN.D000
X:'`,3 - PUBLIC SECTOR\FRESNO\P-21-095 KRON05 INC. .ACREuAENT - 7-19-21 DRAFT (007)_CLEAN.D000