Colvir Software Solutions Ltd (Colvir) Licensing and Technical Support Policy
I. Licensing Policy
- Colvir licensed software (LS) consists of the system Kernel, business modules and optional sub-modules to business modules, integration bus Message Delivery and technical Colvir Support Center module (LS Сomponents).
- The Kernel, business modules and sub-modules are licensed separately. The following LS Components are mandatory: Kernel, General Ledger and Customers and Accounts modules, integration bus and technical module. Optional sub-modules may only be licensed subject to inclusion in the license of the respective business modules.
- The license fee amounts chargeable for LS Components is determined solely by the number of users unless otherwise noted in Section II of the Colvir Software Solutions Ltd (Colvir) Licensing and Technical Support Policy for individual components.
- The minimum license fee applicable to the Kernel allows operation of 20 users. The addition of every user over 20 will increase the license fee by 1% of the minimum fee per user. The license fee calculation is based on the number of concurrent
- The Kernel contains the tool kits to be used for system maintenance and sup port, but also usable for independent development of new software components without recourse to Colvir. The Kernel license grants the right to use the Colvir tool kit for system maintenance and support. It is need to purchase a special tool license for self-development.
- The minimum license fee applicable to each business module and optional sub-module allows operation of 5 users. The addition of every user over 5 will increase the license price of the module / sub-module by 1% of the minimum license fee. As in the case of the Kernel concurrent users should be taken into account as the basis for license fee calculation.
- Unlimited licenses are granted for the use of integration bus and technical module.
II. Licensing policy of individual LS Components
- Account Processing 24x7 module is licensed separately.
- The license fee depends on the number of transactions:
|Licensed number of transactions per day
|License fee, USD
0 - 30 000
30 000 - 100 000
100 000 - 500 000
500 000 - 1 000 000
1 000 000 - 2 000 000
2 000 000 - 5 000 000
5 000 000 - 10 000 000
more 10 000 000
1 100 000
- The licensed number of transactions includes all financial transactions from remote access channels with any result of execution, non-financial transactions from remote access channels with any result of execution, cancellation with any result of execution.
- The licensed number of transactions does not include transactions under agreements from LS (data for statements on deposits and loans), financial transactions from LS (reflecting the change in the balance on the account in the module when performing an operation in LS), operations for setting and withdrawing holds from LS.
- For licensing the peak values of the daily number of transactions for the payment period are used. In this case, the highest (first) peak value (max-1) is not taken into account, and the second largest value (max-2) is taken to determine the number of transactions. In case of exceeding the values compared to the current license, the client is obliged to purchase an additional license.
- For the initial supply of licenses, the analysis of the number of transactions is carried out after one month from the date of putting the module into operation. In case of exceeding the values for which the module was originally licensed, the customer is obliged to purchase an additional license.
III. New Releases
- Colvir invests heavily in the development and launching of new LS Components versions, making every effort to ensure that customers leverage for their business operations new LS versions.
- The official announcement of a new version launch is delivered by sending of circulars to customers and publishing of corresponding information at the Colvir technical support web-site.
- Following the official announcement of a new version launch, the previous LS version is no longer available for sale.
- Delivery of new releases and patches is effected using the Colvir technical support web-site.
- The release code has the following structure: LL V.RR for release without patches and LL V.RR.KKK–PP for release containing patches, where
LL is the localization code (RU – Russia, KZ – Kazakhstan, etc.)
V is the version number
RR is the release number
KKK is the customer code
PP is the patch number
- Colvir keeps track of new versions of Oracle RDBMS and other relevant general system software, and develops new LS versions / releases corresponding to new general system software versions.
- Official announcement of LS migration to new general system software version is delivered by sending circulars to customers and publishing corresponding information at the Company web-site.
- Following the launching of new general system software versions, Colvir LS releases based on previous general system software versions are no longer available for sale.
- In case of advanced technical support agreement, Colvir provides modifications of implemented LS Components to support mandated by legislative changes in the customer’s country, and develops corresponding new LS versions or releases under technical support contract. If due to changes in the legislation of the customer's country, it becomes necessary to supply and implement new LS Components, to change the technology of integration or to implement new integration with the regulatory body, such implementation/modifications shall be carried out on a paid basis.
IV. LS Customization
- LS customization is performed in order to meet specific requirements of individual customer.
- The following developments are considered as LS customization:
- Development of system objects that replace standard LS objects
- Development of system objects that complement standard LS objects
- LS customization may be carried out by Colvir employees, or by third parties, such as certified employees of the customer, or of Colvir’s partners. A partner shall be entitled to perform customization subject to an LS implementation and/or technical support contract between the partner and the customer, as well as subject to a special instruction issued by the customer using a standard form approved by Colvir that allows the partner to perform all requisite activities related to customization on behalf of and in the interests of the customer.
- If customization is performed by a third party:
- Requirements for customization should be coordinated with Colvir in advance.
- In the course of such coordination Colvir will perform estimation of man-days and customization cost as if customization were to be performed by Colvir employees (notional customization cost).
- Estimation of the notional cost must be confirmed by the third party.
- When providing customization the developer must follow Colvir standards.
- After completion of customization all changed objects must be passed to Colvir. Colvir shall accept these changes or produce motivated rejection (rejection is possible in case of low quality of development and/or non-compliance with Colvir standards).
- LS customization requirements are classified by Colvir as follows:
- Requirements improving the functionality
- Special requirements
- Requirements degrading the functionality
- Requirements with no impact on the functionality
- Where the requirements do not improve the functionality, Colvir shall propose alternative solutions either based on standard functionality, or transferring the customization to “Requirements improving the functionality” category. If the alternative solutions proposed by Colvir are not accepted by the customer, the modified LS Components shall be given the status of “individual customization / Colvir”.
- Where the requirements do not improve the functionality, in the event such customization is performed by a third party, following customization the modified LS Components shall be given the status of “individual customization / 3d Party”.
- Where customized objects with “individual customization” status replace standard LS objects, the license fee of these components is increased by 50% from the cost / notional customization cost with corresponding increase of technical support cost.
- Where customized objects with “individual customization” status do not replace standard LS objects, the license fee of these components is increased by 20% from the cost / notional customization cost with corresponding increase of technical support cost.
- In case of requirements improving the functionality Colvir may decide to include the corresponding LS modifications in the next LS release as standard objects. In this case the license fee of modified LS Components will not be changed.
- LS modifications mandated by localization requirements are reviewed with the customers individually.
V. Warranty Services
- Colvir warranty obligations cover correction of LS errors encountered in the course of normal operation of LS Components (including operation of LS Components on which customization has been performed). No other obligations beyond LS error correction shall be assumed by Colvir as part of warranty services.
- The warranty period is calculated separately for each LS Component commencing on the start date of its production use, and lasts for 12 months.
- Customers have an obligation to notify Colvir of the start date of production use of LS Components in order to define the warranty period expiry date.
VI. Technical Support
- Colvir delivers to its customers the following services within the scope of standard LS technical support:
- correction of errors encountered in LS
- FOC provision of new LS versions and releases for purchased modules and sub-modules
- provision of access codes for technical support web-site
- development and publication at the technical support web-site of LS updates that ensure error correction
- development and publication at the technical support web-site of new LS versions and releases
- access to LS updates published at the technical support web-site
- access to the “Questions and Answers” web-site section
- facility to enter questions
- facility to notify the Company of encountered errors
- facility to enter suggestions and comments that should be taken into account in new LS version development
- Within the scope of advanced technical support Colvir provides modifications of LS Components mandated by legislative changes in the customer’s country including production of corresponding new LS versions and releases.
- The technical support cost is 20% for standard maintenance services and 25% for advanced maintenance services from the list license fee payable for the LS Components licensed by the customer. Any sales discounts that may have been granted to the customer shall not be taken into account. It should also be noted that, as stipulated in Section III above, LS customization not improving the functionality increases the LS license fee by 50% (or by 20%) from the cost of the customization efforts. The technical support cost is calculated based on the increased LS license fee.
- In order to receive the services specified in sub-clauses b.- j. of the clause 1 of this Section before the end of the warranty term the customer shall purchase Early technical support services with cost at the rate of 15% (for advanced technical support – 20%) from the license fee of the LS Components for which the warranty period has not yet expired.
- New LS versions / releases are provided within the scope of the technical support services without additional payments. The installation and upgrade services are not included in the technical support obligations.
- Colvir may unilaterally increase the fee of LS Components but not more than 15% for 3 calendar years. Such increase in the fee can occur at a time or in installments over every three calendar years. Official announcements about such increase in the fee of LS Components are sent to customers in the form of information letters no later than 90 days before the start of a new technical support period.
- Customers are obliged to monitor compliance with the terms of their license agreement regarding the number of concurrent users, and acquire additional licenses if necessary.
- Under standard technical support terms and conditions customers shall upgrade LS versions / releases as soon as new versions / releases are launched. Such new releases should be implemented within 3 months following their release date, and new versions should be implemented within 1 year following their release date.
- In the event the customer does not implement a new release within 3 months following its release date, error rectification in the customer’s current release shall become chargeable in cases where the particular error has already been eliminated in the new release.
- One year following the release date of a new LS version standard support and maintenance of the previous version shall be terminated, and related support and maintenance services are assigned “prolonged” status. Within the scope of this status error recovery in the version as well as provision of consultations shall become chargeable. In addition, the cost charged for “prolonged” technical support services shall be the same as the cost charged for standard technical support of the new LS version. After one more year the terms of further technical support shall be subject to individual negotiations.
- Payments for support and maintenance services shall be continuous. In the event of payments interruption e.g. if the current technical support contract has expired and a new contract is not yet signed the customer shall be obliged to pay for technical support resumption in such amount as if the contract has not been interrupted. If the customer wishes to continue receiving support and maintenance services despite lapsing of its current support and maintenance contract, a written guarantee shall be sent by the customer to Colvir as assurance of payment for resumed support and maintenance.
- In exceptional cases Colvir can make a decision to compensate payment gaps by chargeable delivery of new LS versions / releases.
- In the event the customer does not use purchased LS Components the customer is entitled to initiate the issue of removing the unused LS Components from technical support. This right arises for the customer not earlier than three years from the start date of the relevant LS Component production use. Removal of LS Component from technical support is possible only with Colvir confirmation that this LS Component has not been used for the last three years.
- From the date of removal of unused LS Components from technical support, payment from the customer for technical support the removed components shall not be charged, but it also becomes impossible for the customer to perform any actions in relation to the removed components (request for consultation, request for modification, etc.).
- In case of restoration of the technical support of the LS Components previously removed from it, the technical support of the past period shall be paid according to the rules on the continuity of payment.
VII. Final provisions
- Colvir is entitled to change the Company's Licensing and Technical Support Policy by publishing the relevant changes on the website colvir.com and sending a corresponding notice to the customer's e-mail specified in the contracts, while the customer is obliged to independently read the relevant changes. In any case, continued cooperation with the Colvir Company after the change of the Company's Licensing and Technical Support Policy means the customer's consent to the new version of the Company's Licensing and Technical Support Policy.