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Finance Committee - Minutes - 6/6/2018 - P13

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
13
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

Finance Committee - 6/6/2018 Page 13
Alderman Laws

| think it’s just worth saying on the record, before you bring your used electronics to Makelt Labs you should
call them and ask them if they want it. So just so people aren’t going to bring in tons of computers there,
dropping them off on their doorstep.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Scrap Metal Recycling (Value: Revenue of an Estimated $55,000)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD
OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO EXCEL RECYCLING, LLC, FOR AN
ESTIMATED GENERATED ANNUAL REVENUE OF $55,000. SOURCE OF FUNDING IS DEPARTMENT
168, SOLID WASTE

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Refrigerant Recovery (CRC’s) Services (Value: Not-To-Exceed $20,000)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD
OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO INTERSTATE REFRIGERANT RECOVERY,
INC., IN AN AMOUNT NOT-TO-EXCEED $20,000. FUNDS ARE AVAILABLE IN DEPARTMENT 168,
SOLID WASTE

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Portable Goodwin Brand Pump (Value: $45,279)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND APPROVE THE PURCHASE
FROM XYLEM IN THE AMOUNT OF $45,279. SOURCE OF FUNDING IS DEPARTMENT 169,
WASTEWATER; WERF

MOTION CARRIED

UNFINISHED BUSINESS — None

NEW BUSINESS — None

RECORD OF EXPENDITURES

MOTION BY ALDERWOMAN KELLY THAT THE FINANCE COMMITTEE HAS COMPLIED WITH THE CITY
CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURES FOR THE PERIOD
FROM MAY 11, 2018 TO MAY 31, 2018

MOTION CARRIED

GENERAL DISCUSSION - None

PUBLIC COMMENT - None

REMARKS BY THE ALDERMEN - None

POSSIBLE NON-PUBLIC SESSION — None

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Finance Committee - Minutes - 6/6/2018 - P13

Finance Committee - Agenda - 8/17/2022 - P159

By dnadmin on Sun, 11/06/2022 - 21:45
Document Date
Fri, 08/12/2022 - 13:02
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 08/17/2022 - 00:00
Page Number
159
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__081720…

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021

Actuarial Assumptions

The total pension liability was determined by a roll forward of the actuarial valuation as of June 30, 2019,
using the following actuarial assumptions:

Inflation 2.00%
Wage inflation 2.75% (2.25% for Teachers )
Salary increases 5.60%, average, including inflation

Investment rate ofretum 6.75%, net of pension plan investment expense,
including inflation

Mortality rates were based on the Pub-2010 Healthy Retiree Mortality Tables with credibility adjustments
for each group (Police and Fire combined) and projected fully generational mortality improvements using
Scale MP-2019.

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of the most recent
actuarial experience study, which was for the period July 1, 2015 — June 30, 2019.

The following assumptions were changed in the current year:

Reduced the assumed rate of investment return from 7.25% ta 6.75%

Reduced the discount rate from 7.25% to 6.75%

Reduced wage inflation from 3.25% to 2.75% (2.25% for teachers)

Reduced price inflation from 2.5% to 2.0%

Updated demographic assumptions, including merit and longevity salary increases, disability rates,
retirement rates, and mortality tables (specifically the new public pension plan mortality tables)

The long-term expected rate of return on pension plan investments was selected from a best estimate range
determined using the building block approach. Under this method, an expected future real return range is
calculated separately for each asset class. These ranges are combined to produce the long-term expected
rate of return by weighting the expected future real rates of return net of investment expenses by the target
asset allocation percentage and by adding expected inflation. Following is a table presenting target
allocations and geometric real rates of return for each asset class:

Weighted Average Long-Tenn

Asset Class Target Allocation Expected Real Rate of Return
Domestic equity 30% 3.71-4. 15%
Intemational equity 20% 3.96-6.20%

Fixed income 25% 0.42-1.66%

Altemative investments 15% 4.81-7.71%

Real estate 10% 2.95%
Total 100%

Discount Rate

The discount rate used to measure the collective pension liability was 6.75%. The projection of cash flows
used to determine the discount rate assumed that plan member contributions will be made at the current

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Finance Committee - Agenda - 8/17/2022 - P159

Finance Committee - Minutes - 6/6/2018 - P14

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
14
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

Finance Committee - 6/6/2018 Page 14

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN TO ADJOURN
MOTION CARRIED

The Finance Committee meeting was adjourned at 7:46 p.m.

Alderwoman-at-Large Shoshanna Kelly
Committee Clerk

Page Image
Finance Committee - Minutes - 6/6/2018 - P14

Finance Committee - Minutes - 6/6/2018 - P15

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
15
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

2\ THE CITY OF NASHUA “The Gate City’

Financial Services

Purchasing Department

May 31, 2018
Memo #18-162

TO: MAYOR DONCHESS
FINANCE COMMITTEE

SUBJECT: | MARSHALL STREET DRAINAGE IMPROVEMENTS (VALUE: NOT-TO-EXCEED
$35,000)
DEPARTMENT: 169 WASTEWATER; FUND: WASTEWATER

Please see the attached communication from Stephen Dookran, P.E., City Engineer, dated May 31, 2018
for information related to this purchase.
The City Engineer, Board of Public Works (May 31, 2018 meeting) and the Purchasing Department

recommend the award of this contract in an amount not-to-exceed $35,000 to Thibeault Corp. of
Manchester, NH.

Respectfully,

Dan Kooken
Purchasing Manager

Cc: S Dookran L Fauteux

229 Main Street « Nashua, New Hampshire 03061 e Phone (603) 589-3330 « Fax (603) 589-3233

Page Image
Finance Committee - Minutes - 6/6/2018 - P15

Finance Committee - Minutes - 6/6/2018 - P16

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
16
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

THE CITY OF NASHUA “the Gate City"

Financial Services
Purchasing Department
June 6, 2018
Memo #18-165
TO: MAYOR DONCHESS

FINANCE COMMITTEE

SUBJECT: PURCHASE OF KNOWBE4 INTEGRATED SECURITY AWARENESS TRAINING AND SIMULATED
PHISHING SOFTWARE (VALUE: $9998}
DEPARTMENT: 122 INFORMATION TECHNOLOGY; FUND: GENERAL FUND

Please see the attached communication from Bruce Codagnone, CIG/IT Division Director, dated June 6, 2018 for
information related to this purchase.

Pursuant to § 5-92 Information Technology Division participation in purchasing process. For major purchases and
contracts solicited in Accordance with § 5-78 which include computers or communications equipment or related
software, including but not limited to workstations, servers, surveillance equipment and wired and wireless
transmission equipment, the Information Technology Division shall participate in the purchasing process, providing
advice, input and recommendations, which are so noted on the attached memo from Bruce Codagnone.

The CIO/IT Division Director and the Purchasing Department recommends the award of this contract in the amount
of $9,998 to KnowBe4 of Clearwater, FL.

€ J
pee Le CO
ban Kooken

Purchasing Manager

Ce: B.Codagnone J. Graziano

229 Main Street » Nashua, New Hampshire 03061 « Phone (603) 589-3330 @ Fax (603) 589-3233 |

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Finance Committee - Minutes - 6/6/2018 - P16

Finance Committee - Minutes - 6/6/2018 - P17

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
17
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

) THE CITY OF NASHUA “The Cate City’

Information Technology Division

June 6, 2018
TO: MAYOR Donchess
FINANCE COMMITTEE

SUBJECT: Security Training

Cyber security is a major concern for the IT ecosystem as a whole as we are evolving towards a complete digitally-driven
world where technology plays a crucial role. Hacking and Malware have become very sophisticated. My team does an
excellent job implementing tools to protect our systems from outside attacks. However, we still have work to do.

Unfortunately employees are the weak link in our IT Security due to lack of awareness. Social engineering is the number
one security threat to any organization. The alarming growth and sophistication of cyber-attacks only make this problem
worse, as cyber criminals go for the low hanging fruit: Employees. Users remain the first level of a layered defense in
protecting our organization from these attacks and must receive appropriate security awareness training in order to
recognize phishing characteristics and what to do when confronted with them.

Numerous reports and white papers show organizations are exposed to massive increases in the number of cyberattacks
over the past five years. Raising the awareness of cyber security threats in the workplace through targeted employee
education and ongoing reinforcement is the only way to bridge this gap.

In summary, we have chosen KnowB4 to accomplish this goal. KnowBe4 is the world’s most popular integrated Security
Awareness Training and Simulated Phishing platform with over 15,000 customers. KnowB4 pricing is $15,691.32 for 3 years
of service. We were successful in negotiating a discounted rate of $9,998.02.

Respectfully,

Bruce Codagnone
CIO/IT Division Director

Ce: J. Griffin

D. Kooken

229 Main Street * Nashua, New Hampshire 03060 * Phone (603) 589-3300 * Fax (603) 594-3434

Page Image
Finance Committee - Minutes - 6/6/2018 - P17

Finance Committee - Minutes - 6/6/2018 - P18

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
18
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

KnewBe4

Human error. Conquered.

Company Address 33 N Garden Avenue, Suite 1200 Created Date 5/8/2018
Clearwater, FL 33755 Expiration Date 5/14/2018

US
Quote Number 00176627
Payment Terms Net 30
Prepared By Katherine Fein Contact Name Nick Miseirvitch
Email katherinef@knowbe4.com Phone (603) 589-3000 “«
Phone (727) 228-2957 * Email miseirvitchn@nashuanh.gov
Bill To Name City Of Nashua Ship To Name City OF Nashua
Bill To 229 Main St Ship To 229 Main St
Nashua, NH 03060-2938 Nashua, NH 03060-2938
United States United States
Notes: Pricing includes 10% NonProfit/(Government discount.

Product Product Description c ge Discount Quantity
4000KMSGNO00D36-G KnowBeé4 Security Awareness Training Subscription Gold 501-1000 Users USD 24.58% | 501.00 USD
3 Years 26.46 9,998.02
KnowBe4 Security Awareness Training Subscription Platinum Upgrade 3 USD USD
1000KMSPOU00D36-G Yi 501-1000 4.86 100.00% | 501.00 0.00
Total Price USD 9,998.02
Quote Acceptance Information
Your signature on this quote tells us that you have the authority to
Signature make this purchase on behalf of your company and that you agree to
pay within the stated terms. The subscription period will begin when
Name we process your order, which is when we receive your signed quote.
Unless included on the invoice, customer is responsible for any
Title applicable sales and use tax. KnowBe4's Standard Terms of Service

apply, unless mutually agreed otherwise in writing.
Date

Page Image
Finance Committee - Minutes - 6/6/2018 - P18

Finance Committee - Minutes - 6/6/2018 - P19

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
19
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

MASTER AGREEMENT

This Subscription and License Agreement (“Agreement”) is effective as of May 29, 2018 ("Effective Date”) by and
between KnowBed, Inc., a Delaware Corporation whose principal place of business is 33 N. Garden Ave Ste. 1200
Clearwater, Florida 33755, and its affiliates (“KnowBed4”), and City of Nashua (“Custorner”), with a principal place of
business at 229 Main St., PO Box 2019, Nashua, NH 03061-2019. Customer and KnowBe4 may be referred to In this
Agreement individually as a “party” or jointly as the “parties.” This Agreement governs all Products and Services, as

defined below, provided by KnowBed to Customer.

1. Definitions. For purposes of this Agreement:

“AD” means Active Directory. AD is a directory service
(similar to a database} that a network administrator uses
to control network security. A server running AD is called
a domain controller. AD authenticates and authorizes all
users, computers and software in a Windows network—
assigning and enforcing security policies for all computers
and installing or updating software.

“affiliate” means an entity that directly, or indirectly
through one or more entities, controls, is controlled by, or
is under common centro! with, the specified entity.

"Confidential Information” means all information or
material which (i) gives a party some competitive business
advantage, gives a party the opportunity of obtaining
some competitive business advantage, or the disclosure of
which could be detrimental to the interests of a party; and
(ii) which is either (a) marked “Confidential,” “Restricted,”
or “Proprietary information” or other similar marking, (b}
known by the parties to be considered confidential and
proprietary or (c} from all the relevant circumstances
should reasonably be assumed to be confidential and
proprietary. The Documentation and Products are deemed
the Confidential Information of KnowBed4.

“Documentation” means KnowBe4’s then current
generally available documentation, specifications, user
manuals, etc. for the Products and Services, located at
https://knowbed.zendesk.com/he/en-us or such other
URL as KnowBe4 may provide from time to tire.

“lightweight Directory Access Protocol” or “LDAP”. in the
instance that the Custorner uses its own software to
communicate with Active Directory, Customer will need to
use LDAP, KnowBed communicates with the Custorner’s
AD using LDAP to synchronize changes in new users with
the database of users. The Customer will need to install
and configure the AD Sync component.

“UMS” means a Learning Management Systern. LMS is
software for the administration, documentation, tracking,
reporting and delivery of e-learning education courses or
training programs. Organizations can have their own LMS
in-house or use a cloud-based LMS that Knowbe4
provides.

“Bhish Alert Button” or “PAB.” The PAB is an add-in button
which the Customer’s Users can add/download to thelr
email toolbar. This element of the software is included as
a part of the Products. The button is intended to provide a
safe way to forward email threats to a security team for
analysis and deletes the emails from a user's inbox to
prevent exposure. The Customer can choose to have the
ernails directed to their own security team, or to both their
security team and KnowBed for analysis.

“Product Support” means any maintenance and support
of any Products provided by KnowBed4.

“Products” means any Software, Services, and/or Web
Services that KnowBed offers to Customer, including any
Documentation.

“Quote” means a purchasing document or other similar
document, such as a statement of work, from KnowBed to
Customer delivered in connection with a purchase under
this Agreement. The Quote is attached in Exhibit A of this
Agreement.

“Seats” refers to the amount of Users granted access to
the Products at any given time. Seats in the context of this
Agreement will only apply to “Active Users”. Ifa User de-
actives their account, it opens a Seat up for another User.
KnowBe4 retains information within the Cloud-based
Software for de-activated User accounts so to preserve the
account if re-activated by the User.

“Services” means any professional services, including
implementation and installation services agreed upon by
the parties and set forth in a Quote or any Product Support
purchased pursuant to an Order.

“Software” reans the object code version of any software
that may be Hcensed by KnewBe4 to Customer under a
Quote for installation on Customer's systems. To the
extent KnowBe4 delivers any updates or enhancements to
Custorner ag part of Product Support, such updates and
anhancements will be deemed included in the definition
of “Software.”

“Users” means any of Customer’s employees, customers
or other third Parties the Customer gives access to the
Products.

bok

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Finance Committee - Minutes - 6/6/2018 - P19

Finance Committee - Minutes - 6/6/2018 - P20

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
20
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

“Web Service” means an application and/or database
product hosted by KnowBe4 or its agents and made
available for remote access and use by Customer under a
Quote.

"“Brivacy Policy’. KnowBed’s Privacy Policy can be found at
https://www.knowbed.com/privacy-policy/ or such other
URL locations which can be found on KnowB4’s website as
KnowBe4 may provide from time to time.

2. Trial Period.

2.1 Trial Period. if Customer acquires any Products
ona trial period, then Customer will have a period of thirty
(30) days from the Effective Date to evaluate the Product
ithe “Thal Period”). During the Trial Period, all terms and
conditions of this Agreement will apply, except that fi) no
fees will be due from Customer; (1) the Services will be
provided without warranties or indemnities of any kind,
entirely on an “as-is” basis (e.g., the provisions of Sections
7 (Product Support), 10.1 (Product Warranties), 10.2
(Service Warranties}, and 11.1 (KnowBe4 Indemnity
Obligations} will not apply}, and (ill) additional trial terms
and conditions may appear on the trial registration web
page or on the applicable Quote. Any such additional
terms and conditions are incorporated into this
Agreement by reference and are legally binding. At any
time prior to the end of the Trial Period, Custorner may
terminate this Agreement on written notice to KnowBed.

2.2 Trial Disclaimer. CUSTOMER DATA ON
KNOWBE4 SYSTEMS OR IN KNOWBE4’S POSSESSION OR
CONTROL, REPORTS, AND ANY CUSTOMIZATIONS MADE
TG THE PRODUCTS BY OR FOR CUSTOMER’S BENEFIT,
DURING THE TRIAL PERIOD MAY BE PERMANENTLY LOST
OR DELETED AT THE END OF THE FREE TRIAL PERIOD IF
CUSTOMER CANCELS THE PRODUCTS DURING THE TRIAL
PERIOD.

3. Products.

3.1 Software License. This Section applies only in the
avent Customer licenses Software from KnowBed
pursuant to a Quote. Subject to Customer’s payment of all
relevant fees, KnowBe4 hereby grants to Customer
(including Its Affillates) and Customer's authorized Users,
solely for internal purposes, and not for resale or
publication, a limited, non-exclusive, non-sublicensable,
non-transferable {except pursuant to Section 14.6
{Assignment)}, fully-paid, royalty-free license to install,
use, execute, display, and access the Software. The initial
term of the foregoing license will be as set forth in the
applicable Quote. Apart from the foregoing limited
licenses, Customer is not being granted any right, title, or

interest in or to the software Products. All such rights are
expressly reserved by KnowBed.

3.2 Web Services Access, This Section applies only in
the event. Customer orders Web Services from KnowBe4
pursuant to a Quote. Subject to Customer's payment of all
relevant fees, Knowbed hereby grants ta Custorner a non-
exclusive, non-transferable (except pursuant to Section
14.6 {Assignment)}, right to access and use for its internal
business purposes the Web Services. The initial term of the
foregoing access right will be as set forth in the applicable
Quote. Customer shall be solely responsible for
connection of Customer's systems to a
telecommunications service that provides Internet access
for purposes of Customer's access and use of the Web
Services. KnowBe4 will use commercially reasonable
efforts to make the Web Services available in accordance
with the terms set forth in Exhibit B.

3.3 Beta Product. KnowBe4 may offer Beta Services
at no charge. Use of the Beta Services are at the election
of Custorner and are for evaluation purposes only. Beta
Services are not considered “Services” and do not come
with Product Support, Beta Services may be subject to
additional terms. KnowBe4 reserves the right to
discontinue the Beta Services at any time. Beta Services
will automatically terminate at such time as KnowBed
rnakes such Beta Services generally available. Beta Services
may be unpredictable and lead to erroneous results.
Customer acknowledges and agrees that: {i} Beta Services
are experimental and have not been fully tested; (I!) Beta
Services may not meet Customer's requirements; (ill) the
use of operation of any Beta Service may not be
uninterrupted. or error free; (iv) Customer’s use of any
Beta Service is for purposes of evaluating and testing the
Beta Service and providing feedback to KnowBed: {vy}
Customer shall inforrn its employees, staff members, and
other users regarding the nature of Beta Service; and (vi)
Custorner will hold all information relating to Beta Services
and Customer’s use of Beta Services, including any
performance measurernents and other data relating to
Beta Services, in strict confidence and shall not disclose
such information to any unauthorized third parties.
Customer shall promptly report any errors, defects, or
other deficiencies in any Beta Service to KnowBed4.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS
AGREEMENT, ALL BETA SERVICES ARE PROVIDED “AS-IS”
AND “AS-AVAILABLE.” WITHOUT WARRANTIES OF ANY
KIND. Customer hereby waives any and all claims, now
known or later discovered, that Customer may have
against KnowBe4 and its suppliers and licensors arising out
of Customer's use of the Beta Services.

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Finance Committee - Minutes - 6/6/2018 - P20

Finance Committee - Minutes - 6/6/2018 - P21

By dnadmin on Mon, 11/07/2022 - 11:36
Document Date
Wed, 06/06/2018 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 06/06/2018 - 00:00
Page Number
21
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__060620…

3.4. EZXploit Scans. This Section applies only in the event
Customer orders EZXploit pursuant to a Purchase Order.
Customer authorizes and grants access to KnowBed to
perform the EZXploit scans on Customer's cornputer
systems. Customer is solely responsible for ensuring
compliance with any applicable laws and regulations
relating to the EZXploit functionality. Scans may be
performed by KnowBed4 to gather data from any
workstation in Customer's organization where a User
clicks through a social engineering test. Scans may cause
malfunctions or crashes of that computer system. As a
result, Customer acknowledges that these scans pose
certain risks to Customer's computer system. Customer
HEREBY WAIVES ANY COSTS, DAMAGES, OR EXPENSES
ASSOCIATED WITH THESE RISKS AND HOLD KNOWBE4
HARMLESS WITH RESPECT TO SUCH COSTS, DAMAGES,
OR EXPENSES.

4, Product Usage & Rights.

4.1 Acceptance. All sales are final, non-refundable,
and non-returnable except with respect to Products that
do not meet applicable specifications in the relevant
Documentation or that are not identified in the Quote.
inspection and acceptance of the Products shall be
Customer's responsibility. Custorner is deemed to have
accepted the Products once a Quote is signed and sent
over to KnowBe4 for processing. Other than for non-
delivery of the Products, Customer irrevocably waives any
right to revoke acceptance.

4.2 Customer Users. The Products are provided on a
per-seat basis. The concurrent amount of Users cannot
exceed the purchased nurnber of Seats by more than 10%.
if Customer's Users exceed the purchased number of Seats
by more than 10%, the Custorner is obligated to pay for
any Seats that surpass the purchased amount. If a User's
account Is terminated or removed, that User's Seat license
ig no longer considered in use and may be allocated to
another User upon approval by KnowBed. in the event that
the Customer adds on more Seats during a term, the new
Seats will be priced at the same volume level/discount that
the initial Seats purchased during the that term were
purchased for and will be valid only until the end of the
specified term for the apolicable Quote. Upon renewal of
the applicable Quote term, new rates may apply.

4.3 Web Services Term. Unless otherwise provided
in the applicable Quote, (i) Web Services are acquired ona
subscription basis, Gi) additional subscriptions may be
added at any time during a co-pending subscription term,
with the term for such additional subscriptions to be
prorated for the portion of then-current subscription term

remaining at the time the mid-terrn subscriptions are
added, and {Hi} any such additional subscriptions will be
co-pending and each shall terminate on the same date as
the original subscription term.

4.4 Product Term. The applicable term for each
Product is set forth in the applicable Quote.

4.5 intellectual Property. This is not a work made-
for-hire agreement (as that term is defined in Section 101
of Title 17 of the United States Code}. Knowfie4 and its
licensors own all right, title, and interest, including
intellectual property rights, in the Products and all
enhancements, modifications, and updates thereto.
Except for express licenses granted in this Agreement,
KnowBed Is not granting or assigning to Customer any
right, title, or interest, express or implied, in or to
KnowBed’s intellectual property. KnowBed reserves all
rights in such property.

4.6 Feedback. Customer may provide KnowBe4 with
suggestions, comments or other feedback {collectively,
“Seedback”) with respect to the Products. Feedback is
voluntary. KnowBe4 is not obligated to hold it in
confidence. KnowBe4 may use Feedback for any purpose
without obligation of any kind. To the extent a license is
required under any Customer intellectual property rights
to make use of the Feedback, Customer grants KnowBe4
an irrevocable, non-exclusive, perpetual, royalty-free
license to use the Feedback in connection with KnowBed’s
business, including the enhancerment of the Products.

5. Data.

5.1 Customer Data. Custorner grants KnowSe4 and
its Affiliates a non-exclusive, world-wide, royalty-free
license to use the data and other information input by
Customer into the Products (“Custerner Data”): (i) to
perfarm KnowBed’s obligations under this Agreement; (71)
in compliance with the Privacy Policy and (1) as may be
required by law. Customer will be responsible for
obtaining all rights, permissions, and authorizations to
provide the Customer Data to KnowBed for use as
contemplated under this Agreement, Except for the
limited license granted in this Section, nothing contained
in this Agreement will be construed as granting KnowBe4
any right, title, or interest in the Custorner Data. Customer
Data shall be deemed Customer Confidential information.

§.2 Aggregated Dotu. KnowBed may also use
Customer Data in an aggregate, de-identified and generic
manner for marketing, survey and benchmarking
purposes, in the review and development of current and
future Products, Product usage and other similar purposes
("Agpregated Data”). Aggregated Data: {i} is used only for

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Finance Committee - Minutes - 6/6/2018 - P21

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