CLIENT BILLING POLICIES AND PROCEDURES

The following policies and billing procedures have been implemented to establish the Client’s expectations in a business relationship with Integrated Business Solutions. All development, implementation, training and support services rendered by Integrated Business Solutions will be billed according to the procedures explained below.

All projects over ten man-hours in estimated duration require written authorization. The Client is required to authorize the beginning of any project. This agreement must be authorized prior to the inception of any actual work.

Key Development Project Coordination Requirements

• The Client will assign a single point person to act as the project liaison.
• If possible, it is desirable for IBS project managers and/or consultants to meet with the client and tour their facilities prior to beginning development.
• If applicable, the Client will provide IBS all of the client’s computing environment details including network topology, workstation configurations, and output devices.
• The Client will provide IBS with high-speed dial in computer access using PC Anywhere or Citrix software during the course of the project and during any period where IBS will be supporting the Client.
• IBS will only perform development of services when clearly defined specifications have been delivered to Integrated Business Solutions (or developed by IBS on the Client’s behalf and approved by Client) and accepted
• All changes in specifications will be documented through a IBS Change Order. Such changes in specification will potentially affect the project price.
• IBS will provide written and/or verbal project status reports to the Client project liaison. Included in this status report may be prototypes of the development project for the Client to evaluate on a continuous basis.
• IBS will require a design sign-off on the part of the Client prior to the inception of any development efforts.
• IBS will provide written technical documentation as part of any development services preformed including database files added/changed, program files added/changed, and any necessary implementation processes to be performed such as conversion utilities to be run, etc. if authorized by the Client.
• IBS will provide user documentation, if desired, for an additional fee based on the size of the project.

• A 50% retainer is required to begin projects of more than ten man-hours in estimated duration. Special retainer arrangements will be made for projects greater than 100 man-hours in duration.
• Balance of investment is billed weekly based on man-hours worked by IBS during the period. All billings will be reduced by the percentage of the retainer used in that billing.

• A 50% retainer is required to begin projects of more than ten man-hours in estimated duration. Special retainer arrangements will be made for projects greater than 100 man-hours in duration.
• Balance of investment is billed weekly based on man-hours worked by IBS during the period. All billings will be reduced by the percentage of the retainer used in that billing.
• Progress payments are due upon delivery and installation of software for those services. For development projects requiring more than 30 calendar days for completion, IBS will bill at least semi-monthly on man-hours worked by IBS during the billing period with all post-retainer billings due upon receipt.
• All balances are due within 15 days of installation date and final client invoicing.

• A 50% retainer is required to begin training projects of more than ten man-hours in estimated duration. Special retainer arrangements will be made for projects greater than 100 man-hours in duration.
• Balance of investment is billed weekly based on man-hours worked by IBS during the period. All billings will be reduced by the percentage of the retainer used in that billing.

• The Client is responsible for the verification of the software’s functionality and accuracy within the first 60 days following the completed phase.
• There will be no charge for the correction of bugs found in the modified software for a period of 60 days following installation of the software on the Client’s system.
• Any inconsistencies or bugs found in the custom database software after the first 60 days will be corrected by IBS and the Client will be billed on an hourly basis for the services performed at current standard IBS hourly rates.

• 100% of all software or hardware costs (including any applicable federal, state, or local sales or use taxes, shipping charges, etc.) are due in full at the time of order.
• Sales tax will be applied except for clients with a tax-exempt status (tax ID number and signed certificate required).
• Client is responsible for all shipping and handling charges, unless quoted otherwise in writing.

• Opened software packages cannot be returned.
• Unopened products will be accepted with a 15% restocking fee if returned within 15 days of date of delivery (i.e., all disks must arrive at IBS before the 15th day). A 25% restocking fee will apply for unopened software disks returned within 30 days of date of delivery.
• All hardware must be packed in the original packing in which it was delivered.
• Boxes must be in original new condition with no marks or other defacement.
• Client is responsible for all shipping and handling charges for returned merchandise including the shipping charges incurred by IBS for returning the product to the manufacturer or distributor.
• No credit will be issued until the manufacturer or the distributor has issued acceptance of the returned product.

• $125 per hour for every man-hour worked on "Net" terms.

• Up to 40 hours prepaid: $110 per hour
• 40 hours prepaid: $100 per hour
• 100 hours prepaid: $95 per hour
• 250 hours prepaid: $80 per hour
• 500 hours prepaid: $75 per hour

Travel Expense Policy

• Mileage billed at $0.31/mile for each mile after the first ten (10) miles in a round trip.
• Travel time billed at $75 per hour beyond the first quarter hour in a round trip.
• The Client pays airfare and lodging accommodations for out of town services at cost plus 10% or at cost if arranged and paid for by the Client in advance.
• Per Diem. Allowance for meals and miscellaneous expenses are paid by the Client for out of town service at a flat rate of $85 per day per person. If local transportation is not provided for out of town services, CCG will bill client at a flat rate of $40 per day for local transportation and parking.

Service Billing Policies

• All billings are due in full within 10 days.
• A 1.5 % per month finance charge is assessed on invoices open more than 30 days.
• Monthly statements will be generated documenting current period activities, related travel expenses, and finance charges upon request.
• If an account frequently is past due, prepayment of all services and products will be required.

Telephone Expense and Miscellaneous Expenses

This agreement shall constitute the entire agreement between all parties. This agreement is entered into after full investigation with neither party relying upon any non-written statement or representation made by the other party not embodied in this agreement and there are no other agreements or understandings, verbal or written, changing or modifying the terms. No waiver, change, amendment or discharge of any term or condition hereof on the part of the Seller shall b e of any force or effect unless made in writing, attached to this agreement and signed by a duly authorized officer or agent of IBS.

• Definitions - For the purpose of this agreement, the term IBS shall mean Integrated Business Solutions, its employee, agents and sub-contractors. The terms PRODUCT shall mean any goods (hardware, software, etcŠ) or services (programming, installation, modification, training, etc.) provided by IBS. The term PURCHASE shall mean any entity taking possession of any PRODUCT provided by IBS
• Terms- For values received (receipt of which is acknowledged on receipt of this document), PURCHASER agrees to make payment in full to IBS for all amounts due according to IBS’s invoices(s). PURCHASER also agrees to pay IBS a finance charge of 1.5% (per month) of the outstanding balance or $3.00 per month, whichever is greater for invoice amounts that are past due.

Should PURCHASER default on any payment(s), IBS shall have the right, without further notice to the PURCHASER, to declare all invoice amounts due and payable. In the event IBS should commence any action or actions, or otherwise seek to enforce this agreement against PURCHASER, PURCHASER agrees to pay reasonable attorney(s) fees, court costs, and other reasonable expenses incurred by IBS in effort to receive payment.

• Return - Merchandise to be returned for any reason must have a IBS RETURNED MERCHANDISE AUTHORIZATION (RMA). To obtain an RMA call IBS. All RMA’s are valid for 14 days form date of issuance. All merchandise returned to IBS MUST be returned in the original sealed packaging. Merchandise not returned in the original packaging will be at senders risk or loss. All merchandise returned should be insured at replacement value.
• Claims - the PURCHASER must make Claims for loss or damage in shipment to the carrier. All claims must be made to IBS within 3 working days of receipt of the goods or services.
• Taxes - PURCHASER agrees to pay any and all taxes due for products and services received as applicable under Federal, State and Local laws whether billed with delivery of product or at later date.
• Title and Recovery- Title to the Property shall remain with IBS until the purchase price and any interest, taxes or other charges due, have been fully paid. In the event of default in the terms of this agreement, IBS will have the right to take immediate possession of the Property without affecting the terms of this agreement as to recovery of monies due to IBS

IBS may, without notice to the PURCHASER, sell the recovered Property at a public or private sale at such price as is reasonable and credit PURCHASER’s account with the proceeds of sale after deducting all costs arising from said sale. PURCHASER will remain liable for any deficiency that may exist after sale.

Warranty - Services

IBS will perform services in a professional and workmanlike manner; adhering to manufacturer's written standards where available and using the best business and technology skills of IBS where written standards are not available. IBS warrants all services to these specifications: if services performed do not meet written manufacturer's standards, IBS will provide re-work at no additional cost to bring the installed hardware or software current with standards.

IBS agrees to warrantee all services to manufacturer’s standards; that is, IBS agrees to cause all hardware and software to perform as described by the manufacturer. IBS does not warrantee specific features of hardware or software; in the event of known or acknowledged bugs in products responsibility falls to the manufacturer, not the IBS. CLIENT agre es to hold IBS harmless in the event damages are incurred due to use of the network. In any event, CLIENT agrees that damages will be limited to amount paid in professional fees to IBS. IBS does not warrantee features or performance of hardware or software that should be provided by the manufacturer. IBS does not warrantee the proper performance of a ny piece of hardware or software with any other piece of hardware or software except where specifically identified in writing.

Warranty - Products

IBS warrants Products supplied to be free from defects in material and workmanship under normal use and service for a period not to exceed the warranty established by the manufacturer of the PRODUCT. IBS is not liable for providing warranty services on behalf of any manufacturer, but will make a reasonable effort on behalf of the PURCHASER to secure warranty replacement.

These products, Hardware, Software Programs, and OTHER PRODUCTS are sold as is and no warranty of any kind is provided as to their fitness for any specific application. No warranty, whether expressed or implied, shall apply other than that of the MANUFACTURERS written warranty. In the event of a warranty claim, the PURCHASER’s sole remedy shall be repair or replacement as provided by the MANUFACTURER. In no event shall IBS, IBS’s employees, or IBS subcontractors be liable to the PURCHASER for any damages including, but no limited to, lost profits, lost business, lost savings or any other incidental or consequential damages arising out of the use or inability to use such products.

This warranty shall not apply to any PRODUCTS that have been subject to abuse or misuse, negligence, accident or acts of God. This warranty shall not apply to previously owned Product(s). IBS disclaims all warranties with respect to expendable parts, (e.g., backup tapes, disks, and forms). IBS shall not be liable for consequential damage under any circumstances that may arise from purchase or use of any PRODUCT delivered to PURCHASER.

• Remedy Under Hardware Warranty - The obligation of IBS under this warranty shall be limited to furnishing, from the MANUFACTURER, replacement PRODUCTS which are returned to IBS. Upon examination by MANUFACTURER, MANUFACTURER will decide if the items are defective and repair or replace them at their option. Labor to remove or install these parts in PURCHASER’s equipment can be provided at ADDITIONAL COST unless entire unit is returned to MANUFACTURER freight prepaid, whereas the MANUFACTURER will provide any required labor to repair or replace defective parts. This warranty is expressly in lieu of all warranties, expressed or implied, and no other warranties, representations, promises or statements will be honored by IBS unless endorsed in this agreement by addendum in writing.
• Remedy Under Custom Software Warranty - IBS shall be liable for having replacement disks of software provided from the manufacturer only, provided that written notice of such need is presented to IBS within 3 working days of delivery of defective disk(s). Any CUSTOM SOFTWARE PRODUCT is warranted to work according to written specifications provided to IBS prior to the work being preformed. IBS will not be liable for CUSTOM SOFTWARE where source code is provided to customer and ha s been altered in any manner from the manufacturer’s original release. IBS will not be liable for inoperability of any SOFTWARE PRODUCT that has been altered by modification to source code, reverse engineered or tampered with in any way.
• Delivery - Delivery of the PROPERTY by a common carrier or licensed trucker shall constitute delivery to the PURCHASER and all risk of loss or damage in transit shall be borne by the PURCHASER.
• Miscellaneous - Items not specifically mentioned above should be addressed to IBS, 4177 Yale Avenue, La Mesa, Ca. 91941. This agreement becomes effective upon receipt of this document by the PURCHASER. This agreement is neither transferable nor assigned without prior consent of IBS.
• Prices - Prices shown on this document are valid for this order only, and all future orders are subject to a price change without notice.

I have read, understood and agree to the attached policies and procedures.

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