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1 FORM OF
SERVICE AGREEMENT
(to be used by Participating Agency)
Vestis Services, LLC, (“Supplier”) and Sourcewell (“Sourcewell”) have entered into the attached Agreement [011124-VST] dated March 25, 2024, (“Agreement”). The terms and conditions of this Agreement shall apply to all Sourcewell Participating Agency locations that access Sourcewell’s cooperative purchasing contracts (“Participating Agency”) that choose to have Supplier supply uniform and related textile rental merchandise (collectively, “Merchandise”) and related services (the “Services”) offered under the Agreement to their locations (“Participating Agency Locations”) listed on the attached Exhibit B, below, by signing this Service Agreement (“SA”). By signing this SA, Participating Agency is agreeing to be governed by the terms and conditions of the Agreement, and Supplier agrees to supply Merchandise and Services to any Participating Agency that signs the SA.
Participating Agency Name:
Delivery Address:
City/State/Zip:
Contact Name:
Contact Email:
Contact Phone:
The foregoing Participating Agency agrees that it will accept textile rental services from Supplier until the later of (A) the date of expiration of the Agreement or (B) 156 consecutive weeks from the date Supplier’s Merchandise is first installed at the Participating Agency location(s).
In the event the terms of this SA are in conflict with the Agreement, the SA shall control. In the event Sourcewell terminates the Agreement, the terms of the Agreement will continue to govern this SA. The payment terms are net 30 days after the end of the month of delivery. A late payment charge equal to the lesser of 1.5% per month (18% per year) or the maximum permitted by law may be charged by Vestis on all past due amounts. Vestis may elect at any time to revoke credit privileges.
There shall be no price increases for the first four years of the Agreement. In the event the term of this SA has not expired, on or around April 1, 2028, the Supplier may request an increase to all charges annually from the date of this Agreement in an amount up to 4%. This will occur regardless of when this SA is signed.
All rental Merchandise supplied to each Participating Agency is the property of Supplier and shall be promptly returned on demand (i.e., at the end of a rental term, if an employee of a Participating Agency leaves or is terminated, etc.). Supplier will replace rental Merchandise worn out through normal wear and tear at no additional charge. Participating Agency agrees to pay for rental Merchandise that is lost or damaged, except rental Merchandise that is worn out through normal wear and tear, ruined Merchandise covered by EasyCare® and Merchandise covered by Inventory Maintenance. The charge for lost or damaged Merchandise shall be the then current replacement rate. The initial replacement rate for the initial Merchandise is set forth in Exhibit A.
2 If an “EasyCare®” charge is included, Supplier will replace the corresponding Merchandise that is ruined without any additional ruin charge. Merchandise that is ruined as a result of intentional abuse is not covered by EasyCare® and Participating Agency is still responsible for preparation, name and emblem charges.
Either party may discontinue EasyCare® by providing written notice to the other party, in which case standard ruin charges will apply.
Participating Agency may terminate the SA for any individual location for material deficiencies in service and/or quality of Merchandise provided:
(1) Complaints are first made promptly in writing to Supplier's location serving the Member location (with a copy sent by U.S. mail, return receipt requested, to the address first set forth above for Supplier, attention Director of Service, National Accounts or via email to [email protected]), stating the precise nature of any complaints.
(2) Supplier is afforded at least thirty (30) days to correct, or begin to take reasonable steps to correct, any deficiencies complained of; and
(3) Supplier fails to correct, or begin to take reasonable steps to correct, the deficiencies complained of, within thirty (30) days.
In the event Member complies with the foregoing and Supplier fails to correct or begin to take reasonable steps to correct such deficiencies at the applicable location, Participating Agency may terminate the SA at any such location.
Participating Agency agrees to pay all loss or ruin charges and all unpaid statements upon any termination or expiration of this Agreement at any Participating Agency location. EasyCare® and Inventory Maintenance do not cover lost or ruined Merchandise identified in connection with any reduction or elimination of Merchandise or any termination or expiration of this Agreement at any Participating Agency location.
If Participating Agency breaches the Agreement or the SA or terminates the SA early at a location, other than due to Supplier’s failure to cure deficiencies in service and/or quality as described above, Participating Agency shall pay Supplier as liquidated damages (intended as a good faith pre-estimate of the actual damages Supplier would incur and not as a penalty) for each and every location so terminated, an amount equal to the greater of (a) twenty five percent (25%) of the average weekly charges at such location(s) during the three months prior to termination multiplied by the number of weeks remaining in the current term, or (b) a buyback of all rental Merchandise being provided to Participating Agency at such location(s) at the then current replacement rate.
In addition, Participating Agency agrees to pay all loss or ruin charges and all unpaid statements upon any termination or expiration of the SA at any Participating Agency location. EasyCare® does not cover lost or ruined Merchandise identified in connection with any reduction or elimination of Merchandise or any termination or expiration of this Agreement at any Participating Agency location.
Participating Agency acknowledges that Supplier may make an investment in “Special Items” provided to Participating Agency locations. “Special Items” are (a) any items that are (i) embroidered, (ii) not part of Supplier’s standard product line or (iii) otherwise denoted with an “*” on Attachment A, and (b) emblems that are unique to Participating Agency. In addition to any other obligations under this Agreement, upon (i) any termination of this SA in whole or in part, by either party, whether or not for cause, (ii) the final expiration of this SA or (iii) the Participating Agency’s or any location’s change of the specifications of any Special Items, Participating Agency shall purchase from Supplier any Special Items in stock or committed by Supplier to Participating Agency service (i.e., in-service and shelf inventory, as well as manufacturer’s supplies ordered by Supplier). The purchase price for such Special Items shall be the then 3 current replacement rate or direct sale purchase price, as applicable, or, in the case of emblems, the purchase price set forth on Attachment A.
The Merchandise is not resistant to hazardous chemicals, contains no special hazardous chemical resistant features and is not designed for use in areas where contact with hazardous substances is possible.
Participating Agency warrants that none of the employees for whom Merchandise is supplied pursuant to this Agreement require clothing that is resistant to hazardous substances. Participating Agency is obligated to notify Supplier of any toxic or hazardous substance introduced onto the Merchandise and agrees to be responsible for any loss, damage or injury experienced by Supplier or its employees as a result of the existence of such substances. Supplier reserves the right not to handle or process any Merchandise soiled with toxic or hazardous substances. Participating Agency agrees to indemnify Supplier from and against any losses, claims, expenses, damages, or liabilities, including reasonable attorney’s fees incurred by Supplier as a result of any Merchandise being soiled with a toxic or hazardous substance.
Unless otherwise stated in this Agreement, the Merchandise supplied under this Agreement is not flame resistant, contains no flame-resistant features, and is not designed for use in areas of flammability risk is possible. Except for employees wearing flame resistant merchandise, if any, Participating Agency warrants that none of the employees for whom Merchandise is supplied pursuant to this Agreement require clothing that is designed for use in areas of flammability risk.
Any Merchandise listed on Attachment A with two asterisks (**) is flame resistant merchandise.
Participating Agency is responsible for ensuring that its employees follow the proper procedures and requirements for laundering any purchased flame-resistant Merchandise as recommended by the fabric manufacturer(s). Participating Agency will provide the following notification to its employees wearing flame resistant Merchandise:
- WARNING - For prevention of clothing ignition during short term and emergency exposure to flame or electric arc, do not use for protection against continuous thermal loads, hot liquids or steam. Do not wear alone for limb/torso protection during structural firefighting. Do not use for chemical protection or protection from other hazardous substances. Failure to comply with this warning may result in serious injury or death.
Participating Agency agrees that Agency has selected the Merchandise and is responsible for determining its appropriateness and for the safe and proper use, placement and securing of the Merchandise. Supplier warrants to Participating Agency that Supplier shall provide Participating Agency with Merchandise freshly processed, mended, and finished in accordance with generally accepted standards of the textile industry.
Participating Agency assumes all risks associated with the use of the Merchandise and Supplier shall not be liable either in tort or in contract for any injury, death, loss, or damage, arising out of the use or misuse of, or the inability to use, the Merchandise, except to the extent such injury, death, loss, or damage is due to the willful misconduct of Supplier or its agents or employees. Participating Agency agrees to indemnify, defend, and hold harmless Supplier from any and all losses, claims, expenses, damages, or liabilities, including reasonable attorney’s fees incurred by Supplier, arising out of the use or misuse of, or the inability to use, the Merchandise, or the degradation or loss of the reflectivity of any reflective Merchandise or the flame-resistant properties of any flame-resistant Merchandise. For reflective Merchandise, any garments supplied satisfy specific ANSI/ISEA standards only if so labeled. Participating Agency acknowledges that Supplier makes no representation, warranty or covenant regarding the visibility performance of any reflective Merchandise and that reflective properties may be reduced or ultimately lost through laundering. 4 Vestis Services, LLC Participating Agency
Name: ____________________________ Name: _________________________ Signature: _________________________ Signature: ______________________ Title: General Manager Title: __________________________ Date: ____________________________ Date: __________________________ Market Center Number:
5 Exhibit B
Participating Agency Locations
SA (FRM-083 v.6 1/24) AN EQUAL OPPORTUNITY AFFIRMATIVE ACTION EMPLOYER 1 1-866-VESTIS1
vestis.com
SERVICE AGREEMENT
Sourcewell NAID: S12006
Customer #: Use only for current customers
Customer’s Service Location (for multiple locations, see attached list) Customer’s Billing Address (if different) CUSTOMER NAME: CUSTOMER NAME:
ADDRESS: ADDRESS:
CITY / STATE / ZIP: CITY / STATE / ZIP:
*Represents total allocated units, including items at Customer’s location(s) and items in the process of being laundered. **There will be an extra charge reflected on your invoice for any non-standard sized garments.
ADDITIONAL CHARGES:
DESCRIPTION RATE DESCRIPTION RATE
Garment Preparation per Garment
Service Charge per Week
Company Emblem per Emblem
Name Emblem per Emblem
Multi-day Stop Charge per Additional Stop
Embroidery per Embroidery
Additional Terms/Charges:
VestisTM will provide Customer with a uniform, apparel and/or non-garment workplace supplies (Merchandise) rental, lease and/or processing of customerowned-goods program. Customer agrees to pay for all of Customer’s requirements for rented and/or leased Merchandise according to the terms and conditions of this Agreement and any addendums (which constitute our entire agreement), including increases in inventories or additions in Merchandise. A rental program will be provided unless otherwise specified. Vestis will provide regularly scheduled deliveries of rented Merchandise, freshly processed, repaired and finished, and will replace rented and leased Merchandise that is worn out through normal wear at no additional charge. Customer may reduce standard Merchandise and services to accommodate normal turnover of employees. Customer must notify Vestis of an employee's termination and will promptly return Merchandise issued to that employee. All other Merchandise reductions may be made with the approval of Vestis. Customer agrees that Vestis is its provider of rented and/or leased Merchandise and related services.
This Agreement is effective on the date of the last signature to this Agreement and will continue for 36 consecutive months following the later of such date or the date Merchandise is first installed. This Agreement will automatically renew for 52-weeks unless either party gives the other party written notice of termination at least 90 days, but not more than 180 days, before the end of the then current term by certified mail, return receipt requested. All rented or
GARMENTS AND SERVICES ORDERED
No. of
Wearers
MERCHANDISE
(More lines available on page 3)
NUMBER OF ITEMS
PER WEARER*
RATE
(per item)**
EASYCARE®
RATE
(per item)
FREQUENCY
REPLACEMENT
CHARGE
(per item)
NON-GARMENT MERCHANDISE AND SERVICES ORDERED
MERCHANDISE
(More lines available on page 3) QUANTITY* RATE (per item) FREQUENCY MINIMUM BILLED PERCENTAGE EASYCARE®
RATE
(per item)
REPLACEMENT
CHARGE
(per item)
SA (FRM-083 v.6 1/24) AN EQUAL OPPORTUNITY AFFIRMATIVE ACTION EMPLOYER 2 leased Merchandise is the property of Vestis. Rented and leased Merchandise that is lost or ruined will be promptly paid for by Customer at the then current replacement charge. Merchandise ruined through normal wear and tear will be replaced without additional replacement charge.
TERMS AND CONDITIONS (continued)
If an “EasyCare®” charge is included, Vestis will replace the corresponding garment Merchandise that is ruined by Customer and non-garment Merchandise that is lost or ruined by Customer, in each case without any additional replacement charge. Merchandise that is lost or ruined as a result of willful misconduct or intentional abuse is not covered by EasyCare and Customer is still responsible for preparation, embroidery and emblem charges. Either party may discontinue EasyCare on garment Merchandise by providing written notice to the other party, in which case standard loss and ruin charges will apply.
There shall be no price increases until April 1, 2028, unless this Agreement has expired. On or around April 1, 2028, the Supplier may request an increase to all charges annually in an amount up to 4%. This will occur regardless of when this Agreement is signed. Charges may be additionally increased upon written notice (which may be by invoice or monthly statement). Customer may reject any such additional increase by notifying Vestis in writing within 15 days of receiving notice of such increase. If Customer rejects an additional increase, Vestis reserves the right to terminate this Agreement in whole or in part. Vestis may add surcharges or other ancillary charges upon written notice (which may be by invoice or monthly statement) at any time. In consideration of the sizeable investment Vestis is making in Merchandise, Customer agrees that Vestis may impose minimum per invoice recurring Merchandise charges equal to the greater of (a) $25 or (b) 75% of the initial amount of such charges. Vestis will charge customer for every week during this Agreement even if Customer requests reduced or no service for a particular week or weeks.
For customers extended credit, payment terms are net 30 days after the end of the month of delivery. A late payment charge equal to the lesser of 1.5% per month (18% per year) or the maximum permitted by law will be charged by Vestis on all past due amounts. Vestis may elect at any time to revoke credit privileges.
Customer acknowledges that a signed invoice is not required for payment.
Customer may be assessed a returned check fee of $25.00. Customer is responsible for all sales and use taxes.
Service Guaranty: Customer may terminate this Agreement at a location for material deficiencies in service at such location by informing Vestis in writing (by certified mail, return receipt requested) of the precise nature of the service deficiencies and allowing Vestis a reasonable period of time of at least 30 days to correct or begin to correct the deficiencies. If Vestis has not corrected or begun to correct the deficiencies at the location, Customer may then terminate this Agreement at the location by giving Vestis 30 days written notice (by certified mail, return receipt requested) containing an explanation of the material deficiencies that Vestis has not begun to correct. While Vestis will work in good faith to resolve orally communicated issues, Customer agrees that the above writings-based procedure must be followed to terminate this Agreement.
Customer agrees to pay all loss or ruin charges and all unpaid statements upon any termination or expiration of this Agreement. EasyCare does not cover lost or ruined Merchandise identified in connection with any reduction or elimination of Merchandise or any termination or expiration of this Agreement. If Customer breaches this Agreement or terminates this Agreement early (except in accordance with the above Service Guaranty), in whole or in part, Customer agrees to pay Vestis liquidated damages (intended as a good faith pre-estimate of the actual damages Vestis would incur and not as a penalty), equal to the greater of (a) 25% of the average weekly charges during the three months prior to termination multiplied by the number of weeks remaining in the current term, or (b) a buyback of all Merchandise in inventory at the then current replacement charge. Upon any expiration or termination of this Agreement, or any reduction or elimination of “Special Merchandise” under this Agreement, Customer will purchase, at the then current replacement charge, all Special Merchandise. “Special Merchandise” is Merchandise that is not part of Company’s standard product line, is flame resistant or is embroidered, silkscreened, logoed or otherwise customized.
Unless specified in writing in this Agreement, the Merchandise supplied is not flame resistant or resistant to hazardous substances and is not designed for use in areas where it may catch fire or where contact with hazardous substances is possible. Customer will immediately notify Vestis of any toxic or hazardous substance introduced onto the Merchandise and agrees to be responsible for any loss, damage or injury experienced by Vestis or its employees as a result of the existence of such substances. Vestis reserves the right not to handle or process any Merchandise soiled with toxic or hazardous substances. For any Merchandise designated as flame resistant or “FR” (FR Merchandise), Customer agrees to notify all employees of Customer who will be wearing the FR Merchandise that the FR Merchandise is designed for the prevention of clothing ignition during short term and emergency flame exposure only and is not designed for long term high heat exposure or for use around open flames, and that no representation is made by Vestis as to the ability of the FR Merchandise to protect users from injury or death. For reflective Merchandise, any garments supplied satisfy specific ANSI/ISEA standards only if so labeled. Customer acknowledges that Vestis makes no representation, warranty or covenant regarding the visibility performance of any reflective Merchandise and that reflective properties may be reduced or ultimately lost through laundering.
Customer agrees that Customer has selected the Merchandise and is responsible for determining its appropriateness and for the safe and proper use, placement and securing of the Merchandise. Except as set forth herein, the Merchandise and related services are provided “as is” without warranty of any kind, whether express or implied or statutory, and Vestis disclaims any and all implied warranties, including but not limited to any implied warranties of merchantability, fitness for a particular purpose, good and workmanlike manner and non-infringement of third-party rights. Customer assumes all risk associated with the use of the Merchandise, releases Vestis from any and all liability of any kind or nature whatsoever related to the provision or use of the Merchandise and agrees to indemnify, defend and hold harmless Vestis from and against any loss, claim, expense, including attorney's fees, or liability incurred by Vestis as a result of the use or misuse of, or the inability to use, the Merchandise, or the degradation or loss of the reflectivity of any reflective Merchandise or the flame-resistant properties of any FR Merchandise.
In no event will Vestis, its affiliates and their respective officers, directors or employees be liable to Customer for any indirect, special, incidental, consequential (including lost revenue or profits), punitive or extraordinary damages.
Any controversy or claim arising out of or relating to this Agreement will be settled by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on an arbitration award may be entered in any court having jurisdiction. The parties agree to utilize a single arbitrator and the most expedited process available in the forum where the arbitration is held. In this business-to-business Agreement, the terms are tailored to your specific requirements. Based on the foregoing, you agree to waive any right to bring any class and/or representative action based on any business dispute(s) between us. In the event any action, lawsuit or arbitration is required to be brought for collection of any amount due under this Agreement, Customer agrees to pay all Vestis’s fees and costs involved in collection, including reasonable attorney’s fees.
The performance of Vestis’s duties under this Agreement may be subject to circumstances beyond Vestis’s control, including strikes, lockouts, product availability, government acts, wars, and acts of God. Vestis’s failure to perform under this Agreement because of such events will not be considered a breach.
If Customer sells or transfers its business (whether by asset sale, stock sale or otherwise), Customer agrees to require the new owner or operator to assume and become bound by this Agreement.
Customer confirms that, by signing this Agreement, Customer will not breach any existing contract and the person signing this Agreement is duly authorized to do so. This Agreement, the pricing contained in this Agreement and all invoices and other related information provided by Vestis shall be considered confidential information of Vestis and Customer agrees to hold such information in confidence and not share it with any third party, without the prior written consent of Vestis. The parties agree that this Agreement may be signed electronically and in counterparts and that a signed copy of this Agreement delivered by e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. This Agreement is not binding on Vestis until executed by the General Manager of the Vestis facility that will provide service to Customer. This Agreement can only be amended in writing signed by a Vestis General Manager.
SA (FRM-083 v.6 1/24) AN EQUAL OPPORTUNITY AFFIRMATIVE ACTION EMPLOYER 3 By signing below, Customer agrees to order the merchandise and services referenced herein and further agrees to the terms and conditions contained in this Agreement.
Vestis Services, LLC.
Name of Customer Customer Phone Number Vestis Representative Name & Title Name & Title of Customer Contact Signature – Vestis Representative Date By
Signature of Authorized Customer Representative Date Signature – Vestis General Manager Date SA (FRM-083 v.6 1/24) AN EQUAL OPPORTUNITY AFFIRMATIVE ACTION EMPLOYER 4 Use for Additional Line Items
CUSTOMER NAME: CID #: Use only for current customers
ADDRESS: CITY / STATE / ZIP:
*Represents total allocated units, including items at Customer’s location(s) and items in the process of being laundered.
GARMENTS AND SERVICES ORDERED:
No. of
Wearers MERCHANDISE NUMBER OF ITEMS PER WEARER*
RATE
(per item)**
EASYCARE®
RATE
(per item)
FREQUENCY
REPLACEMENT
CHARGE
(per item)
NON-GARMENT MERCHANDISE AND SERVICES ORDERED:
MERCHANDISE QUANTITY* RATE
(per item) FREQUENCY MINIMUM BILLED PERCENTAGE
EASYCARE®
RATE
(per item)
REPLACEMENT
CHARGE
(per item)