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,JJj7J2 . 12-6-91 SCOPE OF SERVICES Page 5 Software Licensing and Distribution The Planning Model will be developed using a proprietary modeling system developed by Hydrosphere. This modeling system is called the Central Resource Allocation Model ("CRAM"). The CRAM network modeling system is analogous to Lotus 1-2-300 in that, by itself, it is not a model. It becomes a model by the imposition of information specific to the system being modeled in much the same way that Lotus becomes a spreadsheet by filling in cells with specific data and formulas. When one purchases Lotus 1-2-3tm, he obtains a license to use the Lotus software in developing his own spreadsheets. This license places certain restrictions on the modification of the software and its transfer to others, yet provides enormous flexibility in the creation, use, and disnibution of spreadsheet files. . Upon delivery of the final Planning Model software and documentation, and in consideration for its fees received in the project, Hydrosphere will grant General Software Licenses for the use of the CRAM software system to the Sponsoring Agencies. This General Software License, attached hereto as Exhibit C, is analogous to the Lotus 1-2-3tm license described above; it places certain limits on the unauthorized copying and use of the underlying CRAM software system but provides substantial flexibility in the use of the Planning Model to analyze new developments, alternative hydrology and demands, and modifications to water system operating procedures. The General Software License permits the Sponsoring Agencies to duplicate and distribute the Planning Model (including underlying executable CRAM software) and User Manual to an unlimited number of end users under a sub-license arrangement. It is anticipated that the cost of each sub-license will be limited to the cost of reproduction of the materials. .