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IBM Research_Amendment to Joint Development Agreement TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment to Joint Development Agreement with IBM Research DATE: August 30, 2012 Sustainable Dubuque Project Manager David Lyons is recommending an amendment to the existing Joint Development Agreement with IBM Research to support a Department of Energy Smart Grid Data Access Grant. Dubuque was recently awarded a Department of Energy Smart Grid Data Access Grant for $500,000. That grant will allow it to expand its Smarter Electricity research work and to collaborate with two other communities in Iowa (Algona and Cedar Falls). I concur with the recommendation and respectfully request Mayor and City Council approval. / AAh kt1&1 Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager David Lyons, Sustainable Dubuque Project Manager TO: Michael C. Van Milligen, City Manager FROM: David Lyons, Sustainable Dubuque Project Manager SUBJECT: Amendment to Joint Development Agreement with IBM Research DATE: August 29, 2012 INTRODUCTION Dubuque was recently awarded a Department of Energy Smart Grid Data Access Grant for $500,000. That grant will allow it to expand its Smarter Electricity research work and to collaborate with two other communities in Iowa (Algona and Cedar Falls). This memo is to seek approval of an amendment to the existing Joint Development Agreement with IBM Research to support this grant. BACKGROUND The Smart Grid Data Access Grant has the goal of empowering residential consumers to better manage their electricity use by enabling access to consumption data by residential customers and their authorized third parties, and providing or supporting the use of third-party tools and software products that utilize the available data to deliver a value-added service to the customer. The grant objectives closely support the objectives set by the Smarter Electricity partnership with IBM as part of the Smarter Sustainable Dubuque project. In this grant the City of Dubuque is partnering with Alliant Energy, Algona Municipal Utilities, Cedar Falls Utilities, the Iowa Association of Municipal Utilities (IAMU), and IBM on this Smarter Electricity Iowa project to pilot and test how Smart Grid-enabled technologies can help consumers to better monitor their electric energy consumption and make more informed choices about the energy they are using. In order to be able to expand the existing Smarter Electricity research and to take advantage of this new grant, the project will need expanded access to the IBM Smarter Electricity portal and collaboration with the IBM cloud-based analytics system. As part of the initial grant application there was $310,000 of the grant set aside for such support from IBM RECOMMENDATION would recommend proceeding with implementing the grant by amending the existing Joint Development Agreement between the City of Dubuque and IBM Research to allow it to encompass this new research, paid for by the pre-identified grant funds from the Department of Energy. ACTION TO BE TAKEN respectfully request Council approve moving forward with the grant project and approve the attached Joint Development Agreement cc: Michael C. Van Milligen, City Manager 2 License No. L126696 JOINT DEVELOPMENT AGREEMENT Agreement No. W1259551 This Joint Development Agreement ( "Agreement ") is between City of Dubuque, Iowa, with an address at 50 W. 13a' Street, Dubuque, IA 52001 ( "City "), and International Business Machines Corporation, a New York corporation, through its T. J. Watson Research Center, with a location at 1101 Kitchawan Road, Route 134, Yorktown Heights, NY 10598 ( "IBM "). WHEREAS, IBM would like to provide a prototype service using Web portals to access the prototype service running on IBM servers, that would allow City management and electric utility customers to monitor electric energy consumption on a near real -time basis in order to better control and reduce the consumption of electric energy ( "Energy Conservation Portal "); and WHEREAS, City is willing to provide funding for the project from the Department of Energy Data Access grant; identify volunteers among its residents to participate in this project; work with City energy company, Interstate Power and Light Company (an Alliant Energy company) ( "IPL "), on providing the volunteers' profile and energy consumption data to IBM in an anonymized form; create and maintain a social media platform and provide such social media data to IBM in an anonymized form; (all anonymized profile, energy consumption and social media data from the cities of Dubuque, Algona and Cedar Falls, shall be the "Data "), interface with the volunteers to answer questions about the Energy Conservation Portal, work with IBM to analyze the results, and provide IBM with feedback on the results ( "Feedback "); and WHEREAS, IBM is willing to work on helping the City partition the volunteers into groups to analyze how these groups differ in their response to information, insights and incentives; provide written reports to City on the progress and results of the project; and demonstrate the Energy Conservation Portal to City and other Iowa government agencies as agreed by the parties; NOW, THEREFORE, for good and valuable consideration as stated herein, City and IBM agree as follows: 1.0 Scope of Work 1.1 The parties will perform the scope of work in any Statement of Work ( "SOW ") that incorporates by reference this Agreement; the initial SOW is attached hereto Joint Development Agreement W1259551 Page 1 of 13 License Reference No. L126696 as Appendix A. In the event of any conflict between the terms and conditions of this Agreement and any SOW, the terms and conditions of the SOW will control. 1.2 All components of the Energy Conservation Portal and the Feedback will be owned by IBM and will be considered IBM Confidential Information in accordance with the provisions of Article 7.0. 2.0 Technical Coordinators David Lyons for City, and Milind Naphade, for IBM, are the Technical Coordinators for this Agreement. Their responsibilities will include exchanging information with the other party, coordinating any visits, and arranging all other matters pertinent to this Agreement. Each party may change its Technical Coordinator by giving written notice to the other party. 3.0 Costs and Expenses 3.1 Payments shall be made as specified in each SOW. All Payments (as defined in the applicable SOW) will be paid in U.S. Dollars and are nonrefundable. 3.2. Payment will be made by wire transfer to the following account: Director of Licensing International Business Machines Corporation PNC Bank 500 First Avenue Pittsburgh, PA 15219 Bank Account Number: 1017306369 ABA Routing Number: 043000096 3.3 The License Reference Number shown on the first page of this Agreement must be included in all communications, including wire transfer payments, tax credit certificates, letters, faxes and e -mail messages pertaining to the payments made under Article 3.1. 3.4 IBM will be entitled to late payment fees on payments due but not received within thirty (30) days after the due date. Late payment fees are defined as the lesser of one percent (I%) of the amount due, compounded each subsequent thirty (30) day period that payments remain unpaid, or the highest rate permitted by law. 3.5 City will bear and pay all taxes (including, but not limited to, sales, property and value added taxes) imposed by any governmental entity of any country in which City is doing business as the result of the existence of this Agreement or the exercise of rights hereunder, except that City will not be liable for any taxes based Joint Development Agreement W1259551 Page 2 of 13 License Reference No. L126696 on IBM's net income. Taxes paid by City will not be deducted from or credited against payments due IBM. 4.0 Copyrights 4.1 "Software" means computer programs, computer program changes, computer program enhancements, and/or any documentation related to computer programs. The parties agree that no Software will be delivered by either parry to the other parry under this Agreement. 4.2 IBM grants to City an irrevocable, nonexclusive, worldwide and fully paid -up license to use, reproduce and distribute internally, any copyrightable materials other than Software furnished or developed by IBM under this Agreement. In addition, IBM grants to City the right to distribute reports provided by IBM hereunder to state governmental entities in Iowa and to sublicense the Progress Reports and the Summary Report identified in Appendix A to IPL and the cities of Algona and Cedar Falls for WE and such cities to use, reproduce and distribute internally. 4.3 City grants to IBM an irrevocable, nonexclusive, worldwide, and fully paid -up license for any copyrightable materials other than the Data and Software, furnished or developed by City under this Agreement. This license includes the right to use, execute, display, reproduce, perform, disclose, prepare derivative works from, and distribute and transmit (internally and externally) such copyrightable materials and their derivative works and to sublicense others to do any or all of the foregoing. City grants to IBM an irrevocable, nonexclusive, worldwide, and fully paid -up license to use, reproduce and distribute the Data furnished by the City under this Agreement: (i) as necessary to perform the work described in this Agreement; (ii) to demonstrate the Energy Conservation Portal to third parties; (iii) to publish the results of the work under this Agreement in scientific journals, and periodicals, and in conference papers and presentations; and (iv) for internal use for research purposes. IBM may not sublicense the Data to any third party. IBM will not take ownership interests in the Data or in any other copyrightable materials other than the Feedback, furnished or developed by City under this Agreement. City hereby assigns to IBM all its rights in the Feedback provided by City to IBM. City agrees to execute any documents necessary to perfect IBM's rights in Feedback. 5. Inventions 5.1 "Invention" means any idea, design, concept, technique, invention, discovery or improvement, whether or not patentable, conceived or first reduced to practice Joint Development Agreement W1259551 Page 3 of 13 License Reference No. L126696 solely by one or more employees of a parry hereto ( "Sole Invention "), or jointly by one or more employees of one parry with one or more employees of the other parry ( "Joint Invention "), in the performance of work under this Agreement. 5.2 Each parry will promptly provide to the other parry a written description of each Invention. The other parry agrees to delay making public, by publication or otherwise, until the earlier of (1) the first filing of a patent application claiming the Invention by the owning parry or (2) six months after the date the Invention is disclosed to the other parry, for any Invention for which the disclosing parry has decided, or is in the process of deciding, to seek patent protection. 5.3 Any Sole Invention will be the property of the inventing parry, subject to a license hereby granted to the other party of the scope set forth in Article 5.4 for such Sole Invention and all patents issued on it. Any Joint Invention will be jointly owned, and title to all patents issued on it will be joint, all expenses (including those related to preparation, prosecution and maintenance) will be jointly shared (except as provided below), and each parry will have the right to license and assign its ownership interest in the joint patent to third parties without need for consent from or accounting to the other party. Where one parry elects not to share equally in the expenses for a Joint Invention, the other parry will have the right to seek or maintain such protection for such Joint Invention at its own expense and will have full control over its preparation, prosecution and maintenance, even though title to any issuing patent will be joint. 5.4 All licenses granted to City and IBM under this Article 5 will be worldwide, irrevocable, nonexclusive, nontransferable, and fully paid -up, and will include the right to make, have made, use, have used, lease, sell, offer to sell, import and /or otherwise transfer any product, and to practice and have practiced any method. All licenses granted to City and to IBM in this Article 5 will include the right of the grantee to grant revocable or irrevocable sublicenses to its Subsidiaries, such sublicenses to include the right of the sublicensed Subsidiaries correspondingly to sublicense other Subsidiaries. 5.5 "Subsidiary" will mean a corporation, company, or other entity; i. more than 50% of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, now or hereafter, owned or controlled, directly or indirectly, by a parry hereto, but such corporation, company, or other entity will be deemed to be a Subsidiary only so long as such ownership or control exists; or ii. which does not have outstanding shares or securities, as may be the case in a partnership, joint venture or unincorporated association, but more than 50% of whose ownership interest representing the right to make the decisions for such corporation, company or other entity is now or hereafter, owned or Joint Development Agreement W1259551 Page 4 of 13 License Reference No. L126696 controlled, directly or indirectly, by a parry hereto, but such corporation, company or other entity will be deemed to be a Subsidiary only so long as such ownership or control exists. 6.0 Term and Termination 6.1 This Agreement will begin on the date it is signed by the last signatory ( "Effective Date "), and remain in effect unless terminated by either parry as provided in Article 6.2 or 6.3 below. 6.2 City may terminate this Agreement and /or any SOW at the end of any calendar quarter with written notice to IBM sent not less than thirty (30) days prior to the end of that quarter, on condition that City pay IBM the payment due at the beginning of the next calendar quarter commencing after the effective date of the termination. 6.3 IBM may terminate this Agreement and /or any SOW at the end of any calendar quarter with written notice to City sent not less than thirty (30) days prior to the end of that quarter. 7.0 Confidentiality 7.1 "IBM Confidential Information" means the Feedback and any technical information about the Energy Conservation Portal. 7.2 For five (5) years from the date of disclosure, City agrees to hold IBM Confidential information in trust and confidence for IBM. City will limit disclosure of the IBM Confidential Information to those of its employees who have a need to know it. City will use IBM's Confidential Information only for the purposes of this Agreement. 7.3 Disclosure of Confidential Information will not be precluded if the disclosure is required by law, but City will give IBM reasonable notice to allow IBM an opportunity to obtain a protective order. The obligations of Article 7.2 above will not apply to information that is: (a) already in the possession of City without obligation of confidence; (b) independently developed by City; (c) publicly available, or becomes publicly available through no fault of City; (d) disclosed by IBM without obligation of confidence; or (e) disclosed with the permission of IBM. 7.4 Each party agrees that the disclosure of its Confidential Information pursuant to this Agreement does not limit the assignment or reassignment of the other parry's employees. Joint Development Agreement W1259551 Page 5 of 13 License Reference No. L126696 7.5 IBM agrees that the Iowa Office of Energy Independence and the Iowa Utilities Board may have unrestricted access to all City records for purposes of evaluating the work performed under this Agreement. 8.0 Representations, Warranties, Disclaimers, Indemnification and Limitation of Liability 8.1 City will be solely responsible for the collection of the Data, and for determining what Data may and will be provided to IBM under this Agreement. 8.2 City represents and warrants that it has all necessary third parry consents to provide the Data to IBM, and to permit IBM to use the Data as provided in this Agreement. City further represents and warrants that it has anonymized the Data delivered to IBM to an extent sufficient to ensure that a person without prior knowledge of the original Data and its collection cannot, from the anonymized Data and other publicly available information, deduce the personal identity of the Data subjects. 8.3 Except as provided in Article 8.2, NEITHER PARTY MAKES ANY WARRANTY, EXPRESS OR IMPLIED, CONCERNING COPYRIGHTABLE MATERIALS, INVENTIONS, PROTOTYPES, DATA, INFORMATION, OR OTHER DELIVERABLES SUPPLIED UNDER THIS AGREEMENT, WHICH ARE ALL PROVIDED "AS IS." EACH PARTY EXPLICITLY DISCLAIMS THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTY OF NON - INFRINGEMENT OF ANY THIRD PARTY'S PATENTS, COPYRIGHTS, OR ANY OTHER INTELLECTUAL PROPERTY RIGHT. 8.4 EACH PARTY ALSO SPECIFICALLY DISCLAIMS ANY WARRANTY REGARDING ANY PROTOTYPE(S) WHICH MAY BE DEVELOPED PURSUANT TO THIS AGREEMENT INCLUDING THAT ANY PROTOTYPE(S) WILL MEET ANY DEVELOPMENT OBJECTIVES, OR ANY REQUIREMENTS OF EITHER PARTY. EACH PARTY WILL MAKE GOOD FAITH EFFORTS TO COMPLETE THE ACTIVITIES UNDER THE STATEMENT OF WORK. FAILURE TO COMPLETE SUCH ACTIVITIES DOES NOT CONSTITUTE BREACH OF CONTRACT. 8.5 City will defend and indemnify IBM and IBM's Subsidiaries if a third parry makes a claim against IBM or its Subsidiaries (i) based on an actual or alleged breach of City's representations and warranties set forth in Article 8.2 or (ii) related to the provision of rewards and incentives by City. 8.6 Except for claims arising out of Article 7.0, and indemnification obligations arising under Article 8.5, neither parry will be liable for any consequential damages, lost profits, lost savings, loss of anticipated revenue, or any exemplary, Joint Development Agreement W1259551 Page 6 of 13 License Reference No. L126696 punitive, special or indirect damages, even if advised of their possibility. IBM's total cumulative direct damages will not exceed a cumulative total of One Hundred Thousand Dollars ($100,000). 9.0 General Provisions 9.1 Each parry is an independent contractor. Neither parry is, nor will claim to be, a legal representative, partner, franchisee, agent or employee of the other. Neither parry will assume or create obligations for the other. 9.2 Except as otherwise provided herein, this Agreement does not confer any rights to use in advertising, publicity or other marketing activities any name, trade name, trademark, or other designation of either parry hereto, including any contraction, abbreviation, or simulation of any of the foregoing, without prior written agreement, and each parry agrees not to use or refer to this Agreement or its terms in any such activities without the express written approval of the other parry. 9.3 All notices will be in writing and will be valid if sent by: a) registered or certified mail, return receipt requested, postage prepaid; b) by facsimile (provided the receipt of the facsimile is evidenced by a printed record of completion of transmission); or, c) by express mail or courier service providing a receipt of delivery. Notice will be effective upon receipt and addressed as follows: 111W IBM Corporation 1 North Castle Drive, Office 2C -99 Armonk, NY 10504 Attn.: Manager, Business and Government Relations City City of Dubuque, Iowa 50 W. 13th Street Dubuque, IA 52001 Attn.: David Lyons 9.4 Neither parry will be liable for any failure or delay in the performance of its obligations under this Agreement if such failure or delay is due to acts of God, acts of the other parry, fire, flood, natural catastrophe, acts of any government or of any civil or military authority, national emergencies, riots, war, insurrection, strikes, or any occurrence beyond the reasonable control of such party. 9.5 Each party agrees to comply and to reasonably assist the other in complying with applicable government export and import laws and regulations. Further, each parry agrees that unless authorized by applicable government license or regulation, including but not limited to U.S. authorization, it will not directly or indirectly export or reexport, at any time, any technology, software and/or commodities furnished or developed under this Agreement, or any other agreement between the parties, or its direct product, to any prohibited country (including release of Joint Development Agreement W1259551 Page 7 of 13 License Reference No. L126696 technology, software and/or commodities to nationals, wherever they may be located, of any prohibited country) as specified in applicable export, embargo, and sanctions regulations. This section will survive after termination or expiration of this Agreement. 9.6 Except as expressly provided in this Agreement, neither parry grants any licenses, either directly or indirectly, by implication or estoppel or otherwise, to either parry under any patent, copyright or other intellectual property right of the other parry. 9.7 Neither party may assign, or otherwise transfer, its rights or delegate its obligations under this Agreement without prior written consent of the other party. Any attempt to do so is void. 9.8 Except for claims arising out of Articles 3.0, 5.0, 7.0, 8.5, or Article 5.0 of a SOW, neither parry may bring an action arising out of this Agreement, regardless of form, more than one year after the cause of action has accrued. 9.9 Neither parry relies on any promises, inducements or representations made by the other, or expectations of more business dealings, except as expressly provided in this Agreement. 9.10 Each parry represents that it has, or will have appropriate agreements with its employees or others whose services the parry may require to enable it to comply with all the provisions of this Agreement. 9.11 Each party may have similar agreements with others, and may design, develop, manufacture, acquire or market competitive products and services, and conduct its business in whatever way it chooses. Each party will independently establish prices and terms for its products and services. 9.12 If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will in no way be affected or impaired thereby so long as the intent of the parties can be preserved. 9.13 This Agreement is governed by the laws of the State of New York, without regard to the conflict of laws provisions thereof. Any proceedings to resolve disputes relating to this Agreement will be brought only in a U.S. federal court if there is federal jurisdiction over such proceeding. The parties waive the right to trial by jury in any matter which arises under this Agreement. The United Nations' Convention on International Sales of Goods does not apply. 9.14 Any rights and obligations which by their nature survive and continue after any expiration or termination of this Agreement will survive and continue and will Joint Development Agreement W1259551 Page 8 of 13 License Reference No. L126696 bind the parties and their successors and assigns, until such obligations are fulfilled. 9.15 This Agreement may only be amended by a writing signed by authorized representatives of the parties. No approval, consent or waiver which alters the terms of this Agreement will be enforceable unless signed by both parties. Failure to insist on strict performance or to exercise a right when entitled does not prevent a party from doing so later for that breach, or a future breach. 9.16 There are no intended third party beneficiaries to this Agreement. 9.17 This Agreement and its Appendices are the complete and exclusive agreement between the parties regarding the subject matter hereof and supersedes any prior oral or written communications or understandings between the parties related to the subject matter hereof. 9.18 This Agreement may be signed in one or more counterparts, each of which shall be deemed to be an original and all of which when taken together shall constitute the same Agreement. Any signed copy of this Agreement made by photocopy, facsimile or PDF Adobe format shall be considered an original. By signing below, the parties agree to the terms of this Agreement. INTERNATIONAL BUSINESS CITY OF DUBUQUE, IOWA MACHINES CORPORATION Name: Name: Title: Title: Date: Date:. � V-7;2— /L, Joint Development Agreement W1259551 Page 9 of 13 License Reference No. L126696 APPENDIX A STATEMENT OF WORK This Statement of Work Number 001 (this "SOW ") adopts and incorporates by reference the terms and conditions of the Joint Development Agreement No. W1259551 ( "Agreement ") dated , between City of Dubuque, Iowa ( "City ") and International Business Machines Corporation ( "IBM "). This Statement of Work is effective beginning October 1, 2012, and will remain in effect until September 30, 2013 unless earlier terminated or extended in accordance with this Statement of Work or the Agreement (the "Term "). Work performed under this Statement of Work will be conducted in accordance with and be subject to the terms and conditions of this Statement of Work and the Agreement, including any Appendices or Attachments. 1.0 Objective The objective of the project is to provide access to the IBM Energy Conservation Portal that would enable electric utility customers in the cities of Dubuque, Algona and Cedar Falls to better control their consumption of electricity, and generate data that could be used for the analysis of consumption patterns for insights that could help electric utility customers reduce their consumption. 2.0 Project Description City will identify volunteers among the electric utility customers in City to participate in this project. The cities of Algona and Cedar Falls may identify volunteers among their electric utility customers to participate in the project as well. These volunteers will specifically authorize their electric energy usage information to be provided to IBM in anonymized form for use in the Energy Conservation Portal. The community -wide metric information generated by this project can be used by the cities of Dubuque, Algona and Cedar Falls to begin estimating consumption baselines, and the aggregated Data will also be shared with the volunteers so that they can compare and benchmark their personal usage with that of the entire aggregated volunteer community. IBM will develop the routines for onboarding Data from all the participating utilities. IBM will make the portal available to up to 1300 consumers across the cities of Dubuque, Algona, and Cedar Falls. Figure 1 shows a screenshot for a consumer to understand consumption, gain insights, engage in conservation activities, connect socially with others in the experiment and be rewarded for conservation. This portal access will include functionality including ability to visualize Data over a period of time, analytics that gives insights into consumption, analytics that compares consumption with other households with similar profiles and ability to engage in energy conservation activities and track performance changes over time as well as ability to connect with the social network, to be set up by the City of Dubuque, around the topic of Joint Development Agreement W1259551 Page 10 of 13 License Reference No. L126696 cons oration. This access will be provided for a duration of 12 mouths during which IBM Research will create multiple groups of users and subject them to different levels of information, insights and incentives and evaluate rtrategies implemented by the cities of Dubuque, Algona and Ceder Palls for effectiveness. IBM shall have no responsibility (other than analysis of the Data) for any incentives or rewards provided by the cities of Dubuque, Algona and Ceder Palls. This portal will also be accessible from smartphones through the use of a web browser. T�wnym zee env 783/11213 5% 17i, 239 •annemcmnnwan _ e.r.,m�..a,.,ma.�...�. �..« Figure 1: A screenshot of the energy conservation portal to be made available to up to 1300 consumer households in the cities of Dubuque, Altona an Mdona Palls. 3.0 Responsibilities of the Parties IBM: 1. Work on onboarding Data from all three utilities and ingest it into the portal that would a. allow city management of Dubuque, Algona and Ceder Palls to understand the electrical energy consumption patterns and sustainability, footprint of the volunteers participating in the project; b. allow Dubuque, Algona and Ceder Palls and participating volunteers to visualize, interact, and understand their electrical energy consumption patterns and sustainability, footprint in comparison with that of the other volunteers participating in the project, Joint Devdopmmt Agreement W1259551 raft 11 of 13 Gamre Refienae No L126696 c. provide access to participating volunteers to the consumption patterns of other volunteers only in the aggregate, and not on an individual participant basis. 2. Work on onboarding Data from all three utilities and analyzing how various groups of consumers perform when presented with information, insights, incentives and social interaction. a. data processing and data management to prepare the Data and then enter it into the Energy Conservation Portal; b. exploratory analysis on the behavior patterns of various groups of volunteers when presented with varying degrees of information, insights, incentives and social interaction. 3. Make available the following IBM technology for use by IBM during the project: IBM Cloud Service IBM Smarter City Sustainability Model Software Infosphere DataStage E: Websphere Application Server SPSS Tivoli Access Manager Webseal 4. Provide City with written progress reports within twenty (20) days after the end of each calendar quarter, summarizing the work performed, the results achieved, and the resources assigned to work on the project during the prior quarter ( "Progress Reports "). 5. Provide a written report analyzing Citywide consumption patterns and across city comparisons ( "Summary Report"). 6. Demonstrate the Energy Conservation Portal to City and other Iowa government agencies as agreed by the parties. City and Utilities: 1. Recruit up to one thousand three hundred (1,300) electric utility customer volunteers to participate in the project. Joint Development Agreement W1259551 Page 12 of 13 License Reference No. L126696 2. Provide IBM with access to a data warehouse that will store Data as frequently as one reading every fifteen minutes. 3. Provide other available Data, on the households of the volunteers participating in the project, such as the size of the house, the number of rooms, the number of windows and doors, the age of the house, appliances, and family size and ages. 4. Provide personnel to interface with volunteers to answer questions about the project, their service or their usage. 5. Run the social network interaction where consumers will be able to connect with information, insights and interaction. 6. Work with IBM to analyze the results, and provide IBM with Feedback on the results. 7. Be responsible for any rewards or incentives provided to volunteers. 4.0 Estimated Schedule IBM will provide the following reports assuming a project start date of October 1, 2012: Dec 1, 2012 Onboarding progress of Data sources from all utilities April 1, 2013 Aggregate consumption and behavior patterns September 1, 2013 Final results of analysis and evaluation of behavior 5.0 Payment Terms In consideration of the joint development work performed under this Appendix A, and the rights and licenses granted by the parties under the Agreement, City shall pay to IBM the total amount of Two Hundred Sixty One Thousand One Hundred Twenty Five U.S. Dollars ($261,125) as shown in the payment schedule below ( "Payments "). Date of Payment Payment Amount October 1, 2012 $ 65,282 January 1, 2013 $ 65,281 April 1, 2013 $ 65,281 July 1, 2013 $ 65,281 TOTAL $261,125 END Joint Development Agreement W1259551 Page 13 of 13 License Reference No. L126696