Amendment 1 to the Master Services
and Purchasing Agreement
Page1 of 4
This First Amendment (“ Amendment”) is between Axon Enterprise, Inc., a Delaware corporation (“ Axon”), and the City of Chula Vista, California (“ Customer”). This Amendment is effective as of the last signature date on this Amendment (“ Effective Date”). Axon and Customer are each a “ Party” and collectively Parties”.
Axon and Customer are parties to the Master Services and Purchasing Agreement fully executed on December 7, 2023 (“Agreement”).
The Parties wish to incorporate further changes into the Agreement in order to add the AI Eras plan to the current purchases.
The Parties therefore agree as follows:
1. The attached documents are hereby incorporated into the Agreement:
a. Quote Q-707659
b. Appendix for AI Technology
2. All other terms and conditions of the Agreement shall remain unchanged and in full force and effect.
Each representative identified below declares that the representative is authorized to execute this Amendment as of the date of signature.
Axon Enterprise, Inc. Customer
Signature: Signature:
Name: Name:
Title: Title:
Date:
John McCann
Mayor
Date:
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
Approved as to form:
By: ___________________________________
Marco A. Verdugo, City Attorney
Robert Driscoll
Deputy General Counsel
ACN 2025-293
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Procurement Review
9/26/ 2025
RESO # 2025- 161
9/30/ 2025
Amendment 1 to the Master Services
and Purchasing Agreement
Page2 of 4
Quote Appendix – See next page
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Page1 Q-707659-45868LG
Q-707659-45868LG
Issued: 07/30/2025
QuoteExpiration: 09/30/2025
EstimatedContractStart Date: 10/01/2025
AccountNumber: 106513
PaymentTerms: N30
Modeof Delivery: UPS-GND
Credit/DebitAmount: $0.00
SHIPTO BILL TO SALESREPRESENTATIVE PRIMARYCONTACT
ChulaVista PoliceDept. - CA
315 4THAVE
CHULAVISTA,
CA
91910-3801
USA
ChulaVistaPoliceDept. - CA
315 4THAVE
CHULAVISTA
CA
91910-3801
USA
Email:
LaurenGauer
Phone: 480-580-3639
Email: [email protected]
Fax:
DanPeak
Phone: (619) 691-5217
Email: [email protected]
Fax:
QuoteSummary Discount Summary
ProgramLength 40Months AverageSavingsPerYear $ 384,157.20 TOTALCOST $ 993,264.00
ESTIMATEDTOTALW/ TAX $ 993,264.00 TOTALSAVINGS $ 1,280,524.00 Axon Enterprise, Inc.
17800N 85thSt.
Scottsdale, Arizona85255
UnitedStates
VAT: 86-0741227
Domestic: (800) 978-2737
International: +1.800.978.2737
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Page2 Q-707659-45868LG
PaymentSummary
Date Subtotal Tax Total
Sep 2025 $ 189,384.00 $ 0.00 $ 189,384.00
Jul 2026 $ 267,960.00 $ 0.00 $ 267,960.00
Jul 2027 $ 267,960.00 $ 0.00 $ 267,960.00
Jul 2028 $ 267,960.00 $ 0.00 $ 267,960.00
Total $ 993,264.00 $ 0.00 $ 993,264.00
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Page3 Q-707659-45868LG
Quote Unbundled Price:$ 2,273,706.80
Quote List Price:$ 1,448,308.80
Quote Subtotal:$ 993,264.00
Pricing
All deliverablesare detailed in Delivery Schedulessection lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program
S00007 AXONAI - AI ERALEADERS 290 28 $ 256.69 $ 155.04 $ 99.00 $ 803,880.00 $ 0.00 $ 803,880.00 A la CarteSoftware
85760 AXONAUTO-TRANSCRIBE - UNLIMITEDSERVICE 290 12 $ 20.80 $ 20.80 $ 72,384.00 $ 0.00 $ 72,384.00 101283 AXONRECORDS - DRAFTONE - AI-ASSISTEDREPORT
WRITING 150 12 $ 65.00 $ 65.00 $ 117,000.00 $ 0.00 $ 117,000.00 Total $ 993,264.00 $ 0.00 $ 993,264.00
DeliverySchedule
Software
Bundle Item Description QTY Estimated Start Date Estimated End Date A la Carte 101283 AXONRECORDS - DRAFTONE - AI-ASSISTEDREPORT WRITING 150 10/01/2025 09/30/2026
A la Carte 85760 AXONAUTO-TRANSCRIBE - UNLIMITEDSERVICE 290 10/01/2025 09/30/2026 AXONAI - AI ERALEADERS 101740 AXON - AI SOFTWARELICENSE 290 10/01/2026 01/31/2029 Services
Bundle Item Description QTY
AXONAI - AI ERALEADERS 101741 AXON - AI PROFESSIONALSERVICES 290 Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Page4 Q-707659-45868LG
Shipping Locations
Location Number Street City State Zip Country
1 315 4TH AVE CHULAVISTA CA 91910-3801 USA
PaymentDetails
Sep 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year 1 - DraftOneand Auto
Transcribe 101283 AXONRECORDS - DRAFTONE - AI-ASSISTEDREPORTWRITING 150 $ 117,000.00 $ 0.00 $ 117,000.00 Year 1 - DraftOneand Auto
Transcribe 85760 AXONAUTO-TRANSCRIBE - UNLIMITEDSERVICE 290 $ 72,384.00 $ 0.00 $ 72,384.00 Total $ 189,384.00 $ 0.00 $ 189,384.00
Jul 2026
Invoice Plan Item Description Qty Subtotal Tax Total
AI Era - Year2 S00007 AXONAI - AI ERALEADERS 290 $ 267,960.00 $ 0.00 $ 267,960.00 Total $ 267,960.00 $ 0.00 $ 267,960.00
Jul 2027
Invoice Plan Item Description Qty Subtotal Tax Total
AI Era - Year3 S00007 AXONAI - AI ERALEADERS 290 $ 267,960.00 $ 0.00 $ 267,960.00 Total $ 267,960.00 $ 0.00 $ 267,960.00
Jul 2028
Invoice Plan Item Description Qty Subtotal Tax Total
AI Era - Year4 S00007 AXONAI - AI ERALEADERS 290 $ 267,960.00 $ 0.00 $ 267,960.00 Total $ 267,960.00 $ 0.00 $ 267,960.00
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Page5 Q-707659-45868LG
Tax is estimatedbasedon rates applicable at date of quote and subject to changeat time of invoicing. If a tax exemption certificate should be applied, pleasesubmit prior to invoicing.
Exceptionsto StandardTermsand Conditions
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Page6 Q-707659-45868LG
CustomerCaseStudy: Customeragreesto participatein at leastonecasestudyontheuseof AI productsduringthetermof thisAgreement, whichmayinclude providingtestimonials, sharingquantitativeandqualitativeresults, andhighlightingtheuseandoutcomesof AxonDevicesandServices. Suchparticipationmay alsoinvolveinterviews, performancemetrics, andinsightsaboutCustomer’s experiencewithAxon. CustomerfurthergrantsAxontherightto publiclyreferencesuch casestudypursuantthetermsof theAgreement. Therightsgrantedhereinwillsurviveterminationof theAgreementsolelywithrespectto materialspublished duringthetermof theAgreement.
ChulaVistaPoliceDepartment, beinganinnovativelawenforcementpartnerof Axon, willdeveloppoliciesin relationto theuseof AI purchasedunderthis Agreement, whichChulaVistaPoliceDepartmentwillmakeavailableto Axonas wellas otherlawenforcementagenciesasa modelusepolicy.
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Page7 Q-707659-45868LG
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Amendment 1 to the Master Services
and Purchasing Agreement
Page3 of 4
Appendix for AI Technology
This AI Appendix shall only apply to Customers who license Axon Cloud Services in a Quote that specifically utilize AI Technology. Unless explicitly defined otherwise, capitalized terms used in this Appendix have the same meaning as those in the Agreement.
1. Definitions
1.1 AI Technology. Refers to artificial intelligence functionalities embedded in Axon’s Cloud Services, which may include: ( a) Enhanced Evidence Management; ( b) AI-powered redaction tools; ( c) Large Language Model- based tools ( e.g., " Draft One" “Policy Chat”); ( d) Predictive Analytics for operational insights; or ( e) Natural Language Processing ( NLP) for text and speech analysis.
1.2 Model Drift. The degradation of AI model performance due to changes in input data or external conditions, requiring retraining or updates.
1.3 Bias Mitigation. Strategies and techniques used to identify, measure, and minimize bias in AI Technology.
2. Scope and Usage
2.1 Integration. Axon AI Technology is intended to improve public safety, streamline operations, and ensure data accuracy. The AI functionalities will only be used as described in the Agreement or applicable documentation.
2.2 Data Use. Axon acts as a Data Processor for AI Technology. All inquiries submitted are processed solely to provide accurate responses based on Customer Content submitted. Customer remains the Data Controller of all Customer Content. Axon and Axon’s subprocessors do not train their models on Customer Content. Customers who elect to participate in Axon’s ACEIP program can enter into custom agreements to assist in product development efforts like AI model training. Even in those cases, Axon operates carefully on redacted data and not on Customer Content.
2.3 Automatic Data Collection. AI Technology may automatically collect Non- Content Data about user interactions with the service and their devices to enhance the functionality and security of the system. The details collected include, but are not limited to, the following:
2.3.1 User Engagement and Activity Metrics. AI Technology may track key engagement statistics, including Daily Active Users ( DAUs), Weekly Active Users ( WAUs), and Monthly Active Users ( MAUs). Additional metrics include new user activations, repeat usage rates, total queries submitted, follow- up query volume, session lengths, retention rates, and user satisfaction ratings ( e.g., thumbs up/ down feedback).
2.3.2 Sales and Adoption Tracking. Axon monitors the number of licenses and agencies purchasing the service, including those in trial phases, fully deploying the service, and conversion rates from trials to paid subscriptions.
2.3.3 End User inputs. Axon may process de- identified end- user inputs to the AI Technology, excluding Customer Content or any data that directly or indirectly identifies individuals.
3. Axon Responsibilities
3.1 Ethical AI Development. Axon shall: ( a) Follow its responsible innovation framework; ( b) Engage with the Ethics and Equity Advisory Council ( EEAC) for feedback; ( c) Conduct testing to Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586 Amendment 1 to the Master Services
and Purchasing Agreement
Page4 of 4
minimize bias and ensure reliability; and ( d) Implement Bias Mitigation techniques in model development and deployment.
3.2 Security Program. Axon will maintain a comprehensive information security program, including logical and physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of digital evidence; and security education.
3.3 Transparency. Axon will provide documentation describing AI functionalities and their intended use and disclose any material limitations, risks, or Model Drift incidents.
3.4 Incident Response. Axon will promptly address and rectify anomalies in AI functionalities, as outlined in its incident management procedures.
3.5 Compliance. Axon will ensure compliance with applicable laws, regulations, and standards, including but not limited to the EU AI Act, NIST AI standards, and ISO/ IEC 27001.
4. Customer Responsibilities
4.1 Ownership of Customer Content. Customer controls and owns all rights, title, and interest in Customer Content. Axon obtains no interest in Customer Content and will only access Customer Content for limited purposes as outlined in the Agreement.
4.2 Use of AI Technologies. Customer must: ( a) review AI-generated outputs to ensure accuracy and appropriateness; ( b) maintain control over Customer Content shared with AI Technologies c) comply with applicable laws when using Axon AI Technology and Axon Services; ( d) monitor for potential issues with AI outputs, including false positives or negatives; ( e) actively opt- in for programs involving data sharing through Axon’s ACEIP program; and ( f) provide timely feedback on Axon AI Technology performance.
4.3 Restrictions. AI Technology is not designed for emergencies, and in such cases, users should contact appropriate emergency services directly. Axon disclaims liability for queries containing prohibited content, such as hate, sexual material, or violence, and reserves the right to restrict such usage.
5. Draft One. Specifically for Customers who utilize Draft One, Axon may impose usage restrictions if a single user generates more than three hundred ( 300) reports per month for two or more consecutive months.
Docusign Envelope ID: 5CA89BEF- AD2B- 4385- 9758- F8BCB7C4C586